ANNUAL REPORT OF THE

FEDERAL DEPOSIT INSURANCE CORPORATION

1966

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Parts One and Two were first published 

April 28, 1967. This volume includes also 

Part Three, containing statistical tables.

October 20,1967

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
LETTER OF T R A N S M I T T A L

FEDERAL DEPOSIT INSURANCE CORPORATION 

Washington, D. C., April 28, 1967

SIRS: Pursuant to the provisions of Section 17(a) of the Federal 

Deposit Insurance Act, the Federal Deposit Insurance Corporation 

is pleased to submit its report for the calendar year 1966.

Respectfully yours,

Chairman

THE PRESIDENT OF THE SENATE

THE SPEAKER OF THE HOUSE OF REPRESENTATIVES

Digitized 

iii

for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION

EXAMINATION

DIVISION

COMMITTEES

bo ard" of review

LIQUIDATIONS, LOANS AND 

PURCHASES OF ASSETS 

SPECIAL

EXECUTIVE ASSISTANT 

TO THE BOARD

ASSISTANTS

AUDITOR

BOARD OF DIRECTORS

CHAIRMAN 

COMPTROLLER OF THE CURRENCY 

DIRECTOR

SECRETARY

i------------------- -------------------- r

I I

I I

I I

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION

BOARD OF DIRECTORS

Chairman___________________________________________ K. A. Randall

Director_________________________________________________(Vacancy)

Comptroller of the Currency_______________________William B. Camp

OFFICIALS

Assistant to the Chairman________________________John L. Flannery

Special Assistant to the Chairman________________________Lynn Mah

Special Assistant to the Chairman

for Mutual Savings Banks_____________________ Raymond T. Cahill

Assistant to the Director___________________________ Thano Dameris

Assistant to the Director_________________________ Albert J. Faulstich

(Comptroller of the Currency)

Chief, Division of Examination_________________Edward H. DeHority

General Counsel_____________________________________ John F. Lee

Controller___________________________________ Edward F. Phelps, Jr.

Director, Division of

Research and Data Processing_____________ Fredericks. Hammer

Chief, Division of Liquidation________________________A. E. Anderson

Secretary------------------------------------------------------------------E. F. Downey

Auditor (Acting)_________________________________ John D. Roderick

Senior Advisor to the Board__________________ Raymond E. Hengren

Executive Assistant to the Board____________ Timothy J. Reardon, Jr.

Assistant to the Board_________________________ William M. Moroney

Assistant to the Board_______________________________Frank E. Tracy

October 20, 1967

V

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION DISTRICTS

DISTRICT OFFICES AND SUPERVISING EXAMINERS

Boston

Mark S. Laverick, 8th Floor,

Two Center Plaza,

Boston, Massachusetts 02108

New York

Claude C. Phillippe, 74 Trinity 

Place, New York, New York 10006

Philadelphia

Alan R. Miller, Suite 972, Public 

Ledger Building, 6th and Chestnut 

Streets, Philadelphia, Pennsylvania 

19106

Richmond

Albert E. Clark, 403 East Grace 

Street, Richmond, Virginia 23219

Atlanta

Lewis C. Beasley, 1000 Bank of 

Georgia Building, Atlanta,

Georgia 30303

Columbus

William D. Allen, Suite 600, 

Huntington Trust Building, 37 West 

Broad Street, Columbus, Ohio 43215

Madison

Wallace A. Ryen, 715 Tenney 

Building, Madison, Wisconsin 53703

Chicago

John J. Early, 164 West Jackson 

Boulevard, Chicago, Illinois 60604

St. Louis

John Stathos, 420 Locust Building, 

1015 Locust Street,

St. Louis, Missouri 63101

Memphis

Quinton Thompson, Suite 1010,

First National Bank Building,

165 Madison Avenue,

Memphis, Tennessee 38103

Minneapolis

Roger B. West, 748 Roanoke Building, Minneapolis, Minnesota 55402

Kansas City

Stanley Pugh, 1708 Federal Reserve 

Bank Building, Kansas City,

Missouri 64106

Dallas

Lloyd Thomas, Federal Reserve 

Bank Building, Station K,

Dallas, Texas 75222

San Francisco

Walter W. Smith, Suite 3600, Wells 

Fargo Building, 44 Montgomery 

Street, San Francisco, California 

94104

FEDERAL DEPOSIT INSURANCE CORPORATION

M a i n O f f i c e : 5 5 0 1 7 t h S t r e e t , N. W., W a s h i n g t o n , D. C. 2 0 4 2 9

vi

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
The year in brief

CONTENTS

xi

Page

PART ONE

OPERATIONS OF THE CORPORATION

Introduction ________________________________________________ 3

Deposit insurance participation and coverage _____________ 3

Economic and banking developments in 1966 ______________ 5

Disbursements to protect depositors _______________________ 10

Supervisory activities ______________________________________ 15

Federal legislation__________________________________________ 23

Rules and regulations of the Corporation and

statements of general p o lic y _____________________________ 26

Administration of the C orporation___________________________ 28

Finances of the C orporation_________________________________ 29

PART TWO

LEGISLATION AND REGULATIONS

Federal banking legislation— 1966 __________________________ 71

Rules and regulations of the Corporation and

statements of general policy— 1966 _____________________ 106

Statement of policy with respect to advertising by

insured state nonmember banks _________________________ 120

State banking legislation— 1966 _____________________________ 121

PART THREE

STATISTICS OF BANKS AND DEPOSIT INSURANCE

Number of banks and branches_____________________________ 126

Assets and liabilities of banks _____________________________ 140

Income of insured banks____________________________________ 156

Banks closed because of financial difficulties;

deposit insurance disbursem ents_________________________ 182

vii

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
LI ST OF TABLES

DEPOSIT INSURANCE PARTICIPATION AND COVERAGE:

1. Banks and branches in the United States classified by type and participation in Federal deposit insurance, December 31, 1965 and 1966 . 4

DISBURSEMENTS TO PROTECT DEPOSITORS:

2. Insured banks closed during 1966 requiring disbursements by the Federal Deposit Insurance Corporation ___________________________________ 11

3. Protection of depositors of insured banks requiring disbursements by

the Federal Deposit Insurance Corporation, 1934-1966 _______________ 12

4. Analysis of disbursements, recoveries and losses in deposit insurance

transactions, January 1, 1934-December 31, 1966 _____________________ 14

SUPERVISORY ACTIVITIES:

5. Mergers, consolidations, acquisitions of assets and assumptions of

liabilities approved under section 18(c) of the Federal Deposit Insurance Act during 1966 _________________________________________________ 17

6. Bank examination activities of the Federal Deposit Insurance Corporation

in 1965 and 1966 ______________________________________________________ 19

7. Actions to terminate insured status of banks charged with unsafe or unsound banking practices or violations of law or regulations, 1936- 

1966 ____________________________________________________________________ 21

15. Description of each merger, consolidation, acquisition of assets or 

assumption of liabilities approved by the Corporation during 1966 ____ 35

ADMINISTRATION OF THE CORPORATION:

8. Number of officers and employees of the Federal Deposit Insurance

Corporation, December 31, 1965 and 1966 ___________________________ 28

FINANCES OF THE CORPORATION:

9. Statement of financial condition, Federal Deposit Insurance Corporation, December 31, 1966 _______________________________________________ 30

10. Statement of income and the deposit insurance fund, Federal Deposit

Insurance Corporation, year ended December 31, 1966 ______________ 31

11. Determination and distribution of net assessment income, Federal Deposit Insurance Corporation, year ended December 31, 1966 . 32

12. Sources and application of funds, Federal Deposit Insurance Corporation, year ended December 31, 1966 _______________________________ 32

13. Income and expenses, Federal Deposit Insurance Corporation, by year,

from beginning of operations, September 11, 1933, to December 31, 

1966, adjusted to December 31, 1966 ______________________________ 33

14. Insured deposits and the deposit insurance fund, 1934-1966 ___________ 34

Page

v iii

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
NUMBER OF BANKS AND BRANCHES:

Explanatory note ____________________________________________________________ 126

101. Changes in number and classification of banks and branches in the

United States (States and other areas) during 1966 _________________ 128

102. Changes in number of commercial banks and branches during 1966,

by State _____________________________________________________________ 130

103. Number of banking offices in the United States (States and other areas),

December 31, 1966

Grouped according to insurance status and class of bank, and

by State or area and type of office ___________________________________ 132

ASSETS AND LIABILITIES OF BANKS:

Explanatory note ____________________________________________________________ 140

104. Assets and liabilities of all banks in the United States (States and other

areas), June30,1966 

Banks grouped according to insurance status and type of b a n k ___ 142

105. Assets and liabilities of all banks in the United States (States and other

areas), December 31,1966

Banks grouped according to insurance status and type of b a n k ___ 144

106. Assets and liabilities of insured commercial and insured mutual savings

banks in the United States (States and other areas)

December call dates, 1962-1966_____________________________________ 146

107. Assets and liabilities of insured commercial banks in the United States

(States and other areas), December 31, 1966 

Banks grouped by class of b a n k __________________________________ 150

108. Assets and liabilities of insured commercial banks operating throughout 1966 in the United States (States and other areas), December 31,

1966

Banks grouped according to amount of deposits _________________ 151

109. Average assets and liabilities of insured commercial banks in the United

States (States and other areas), by State, 1966 ____________________ 152

110. Distribution of insured commercial banks in the United States (States

and other areas), December 31,1966 

Banks grouped according to amount of deposits and by ratios of

selected items to assets and d e p o s its ________________________________ 154

Page

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Page

INCOME OF INSURED BANKS:

Explanatory note ___________________________________________________________ 156

111. Income of insured commercial banks in the United States (States and

other areas), 1958-1966 _____________________________________________ 158

112. Ratios of income of insured commercial banks in the United States

(States and other areas), 1958-1966 _______________________________ 160

113. Sources and disposition of total income, insured commercial banks in

the United States (States and other areas), 1958-1966 _______________ 161

114. Income of insured commercial banks in the United States (States and

other areas), 1966

Banks grouped by class of b a n k __________________________________ 162

115. Income of insured commercial banks operating throughout 1966 in the

United States (States and other areas)

Banks grouped according to amount of deposits _________________ 164

116. Ratios of income of insured commercial banks operating throughout

1966 in the United States (States and other areas)

Banks grouped according to amount of deposits____________________ 166

117. Income of insured commercial banks in the United States (States and

other areas), by State, 1966 __________________________________________ 168

118. Income of insured mutual savings banks, 1958-1966 __________________ 178

119. Ratios of income of insured mutual savings banks, 1958-1966 __________ 180

120. Sources and disposition of total income, insured mutual savings banks,

1958-1966 ____________________________________________________________ 181

BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES;

DEPOSIT INSURANCE DISBURSEMENTS:

Explanatory note ____________________________________________________________ 182

121. Number and deposits of banks closed because of financial difficulties,

1934-1966 ____________________________________________________________ 184

122. Insured banks requiring disbursements by the Federal Deposit Insurance

Corporation during 1966 ____________________________________________ 185

123. Depositors, deposits and disbursements in insured banks requiring disbursements by the Federal Deposit Insurance Corporation, 1934-1966 

Banks grouped by class of bank, year of deposit payoff or deposit

assumption, amount of deposits, and State __________________________ 186

124. Recoveries and losses by the Federal Deposit Insurance Corporation

on principal disbursements for protection of depositors, 1934-1966 __ 188

X

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
THE YEAR IN BRIEF

The 13,873 banks insured by the Corporation at the end of 1966, 

consisting of 13,541 commercial banks and 332 mutual savings 

banks, represented about 97 percent of all banks and banking 

assets in the nation.

The Corporation’s insurance fund at the year-end totaled $3,252 

million, amounting to 0.81 percent of total deposits in insured banks, 

and 1.39 percent of estimated insured deposits.

In 1966, seven insured banks were closed due to financial difficulties, requiring disbursements by the Corporation of $15.1 million 

to protect their approximately 95,000 depositors.

Effective October 16,1966, the maximum insurance per depositor 

in an insured bank was increased by statute from $10,000 to 

$15,000. Results of a survey of deposits on June 30,1966, indicated 

that, had the higher maximum been in effect on that date, nearly 

99 percent of depositors in insured banks would have been fully 

protected and 58 percent of deposits insured.

The Corporation conducted 13,663 field examinations and investigations during the year. Federal legislation affecting bank 

supervision in 1966 included amendments to the Bank Merger Act 

of 1960 and the Bank Holding Company Act of 1956. Also, PL 89- 

597 provided, on a temporary basis, additional flexibility to the 

Federal Reserve and the Corporation in establishing maximum 

interest rates payable by insured banks on deposits; and under 

the Financial Institutions Supervisory Act of 1966 the Federal 

banking agencies were provided the means for more effective 

bank supervision through a grant of authority to issue cease-anddesist orders in certain situations.

Against a background of tightened monetary conditions and 

increasing competition among lenders for funds in 1966, the Corporation amended its regulations defining some types of deposits 

and modified the maximum rates payable by nonmember insured 

banks on certain time deposits. Late in the year the Corporation 

issued a statement of policy with respect to advertisements for 

funds by banks under its supervision.

During 1966 the total number of banks declined by 33, while 

branch offices increased by 1,211. Total assets of insured commercial banks rose during the year by over 7 percent to $403 

billion. Almost two-thirds of the increase in deposits of these banks 

occurred in the time and savings category. The banks’ net income 

after taxes amounted to $2.7 billion, up nearly 7 percent from 1965, 

and provided a return of 8.7 percent on total capital accounts.

xi

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
OPERATIONS

OF THE CORPORATION

PART ONE

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
3

INTRODUCTION

The Federal Deposit Insurance Corporation has reached an 

age where it can both view its beginnings with nostalgia and look 

forward with confidence to its role in the future. It still numbers a 

dozen employees who remember the hectic task of examining 

nearly 7,800 applicant banks preliminary to their qualifying for insurance when coverage became effective on January 1, 1934. On 

the other hand, 39 percent of the Corporation’s present employees 

were not yet born when Federal deposit insurance went into effect. 

This is another way of saying that a complete generation has grown 

up which has had no experience with the flood of bank failures 

that brought the Corporation into existence. As the new generation has grown up, deposit insurance has been accepted as an 

integral part of our banking environment.

A decade of banking difficulties had culminated in 4,000 failures in 1933, and there was concern over the survival of our banking system as it was then structured. Insurance was accepted as a 

moderate step which, through a limited guarantee of deposits, 

would instill enough confidence on the part of the public to preserve the banking structure and give banks time to rehabilitate 

themselves.

The concept worked. Bank failures have been sharply reduced, 

with minimum loss to depositors and the FDIC. This has occurred 

in part because of the confidence flowing from deposit insurance 

and in part because of close and continuing supervision of banks. 

The favorable economic environment during most of the Corporation’s existence has also contributed significantly to the reduction 

of bank failures. Even so, it is clear that bank failures can still cause 

distress in the communities affected and have a marked impact on a 

generation unaccustomed to bank failure.

The Corporation’s activities have always been focused in two 

main areas: fulfilling its insurance obligations and carrying out its 

supervisory responsibilities. The former activity is still crucial, 

though the occasions for actively protecting depositors have been 

significantly less frequent since the first decade of insurance. 

Supervision has always been important, but its emphasis has 

changed in part, reflecting changes in the character of banking 

risks, the accretion of new responsibilities, and increasing attention to the modernization of the banking system.

DEPOSIT INSURANCE PARTICIPATION AND COVERAGE

Participation. Participation in Federal deposit insurance has 

always been high, ranging from 86 percent of all banks at the beDigitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
4 FEDERAL DEPOSIT INSURANCE CORPORATION

ginning of insurance to 97 percent at the end of 1966, when 13,- 

873 banks were insured by the Corporation.

To be eligible for Federal deposit insurance, an institution must 

be a domestic, corporate entity which is authorized to engage in 

the business of receiving deposits. To obtain insurance, it must 

meet certain criteria specified by statute and applied by the appropriate Federal banking agency. National banks and State banks 

that are members of the Federal Reserve System are automatically 

insured as a corollary of that status. State banks that are not 

members of the Federal Reserve System become insured upon 

application to and approval by the Corporation’s Board of Directors. About one-third of the insured banks are national banks. Of 

the State insured banks, about one-seventh are members of the 

Federal Reserve System. The numbers of banks and branches in 

the United States, classified by insurance status, are shown in 

Table 1.

Table 1. BANKS AND BRANCHES IN THE UNITED STATES CLASSIFIED BY 

TYPE AND PARTICIPATION IN FEDERAL DEPOSIT INSURANCE, 

DECEMBER 31, 1965 AND 1966

A ll banks

Commercial banks and nondeposit 

tru st companies

Mutual savings 

banks

Insured

Type of office 

and date

Noninsured

Members FRS Not

members

FRS

NonTotal Insured National State Insured insured insured

All banking

offices

Dec 31, 1966 32,136 31,491 645 14,436 4,867 11,241 328 947 317

Dec 31, 1965 30,958 30,306 652 13,801 4,738 10,854 343 913 309

Banks

Dec 31, 1966 14,291 13,873 418 4,799 1,350 7,392 244 332 174

Dec 31, 1965 14,324 13,876 448 4,815 1,405 7,327 271 329 177

Branches

Dec 31, 1966 17,845 17,618 227 9,637 3,517 3,849 84 615 143

Dec 31, 1965 16,634 16,430 204 8,986 3,333 3,527 72 584 132

The number of banks not participating in Federal deposit insurance continued to decline in 1966, and totaled 418 by the end of the 

year. Over two-fifths of these, or 174, were mutual savings banks; 

all but four of the latter were in Massachusetts and insured by that 

State’s insurance system. Most of the remaining institutions were 

ineligible for insurance, either because of their unusual nature or 

because of their inability or disinclination to meet insurance standards.

Coverage. The amount of insurance afforded each depositor in 

an insured bank is limited by statute. This limitation was initially 

$2,500; in mid-1934 it was raised to $5,000, in 1950 to $10,000, and

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
DEPOSIT INSURANCE PARTICIPATION AND COVERAGE 5

on October 16, 1966 to the present maximum of $15,000. Within an 

insured bank, a depositor is currently protected up to $15,000 on 

each deposit maintained in the same right or capacity.

The number of accounts fully protected within the insurance limitation has always been high. On June 30, 1966, the date of the 

latest survey of deposits undertaken by the Corporation, 97 percent 

of the 193 million accounts in insured banks were fully protected 

under the applicable $10,000 maximum. The subsequent increase 

to the $15,000 maximum is estimated to have raised the proportion 

of accounts fully protected to nearly 99 percent of all accounts.

The relatively few accounts that exceed the insurance limitation often do so by a substantial amount. Consequently, the proportion of total deposits which is insured has always been significantly less than the proportion of accounts fully protected. The 

June 30, 1966 survey showed that 54 percent of the dollar amount 

of deposits in insured banks was within the $10,000 limitation. 

Had the $15,000 maximum been in effect on that date, it is estimated that the percentage would have risen to 58 percent.

ECONOMIC AND BANKING DEVELOPMENTS IN 1966

The operations of the Corporation are carried on against the 

background of a constantly changing economic and financial environment. In recent years banks have become more competitive 

with other financial intermediaries, and the Corporation, as a consequence, has had to view its responsibilities in a broader context. 

Economic developments in 1966, in particular, presented unusual 

challenges to the supervisory agencies.

Prosperity brings pressures. The year 1966 was one of high economic achievement in the midst of mounting pressures. Buoyant 

economic activity brought record levels of production, employment, and income to the American economy. Gross national product amounted to a record $740 billion, an increase of 8.6 percent 

over 1965— or a real gain of 5.4 percent after allowing for price advances during the year. Unemployment fell to the lowest rate in 13 

years as civilian employment reached 74 million. Notwithstanding 

the rise in consumer prices and a slight decline in the rate of increase in productivity, real per capita income at the disposal of 

individuals advanced 3.6 percent.

The performance extended into its sixth straight year the recovery that began in 1961. During this period the economy has 

grown at an annual rate in excess of 5 percent. In most of the 

period the economy operated with a significant margin of idle industrial capacity and a substantial number of unemployed. In this 

environment, much of the growth before 1965 was accomplished

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
6 FEDERAL DEPOSIT INSURANCE CORPORATION

through absorption of formerly idle resources, with relatively moderate impact on prices and financial markets. As this cushion of 

unused resources thinned, however, the persistent expansion in 

economic activity after mid-1965 produced strains that began to 

be reflected in rising prices and interest rates.

The pressures which plagued much of 1966, while reflecting 

the momentum of five years of expansion, had their particular 

origin in a conjunction of forces which arose around the middle 

of 1965. Additional fiscal stimuli had been injected in the form of 

lower excise taxes and more liberal social security benefits, which 

took effect in the last half of 1965. Then, stepped-up activity in 

Vietnam announced in July 1965 resulted in a boost in defense 

outlays and commitments.

Restraints. Economic activity accelerated during the final months 

of 1965, fueled both by an ample supply of credit and expansionary 

fiscal policies. In December the Federal Reserve raised the rediscount rates to 41/2 percent. On the fiscal front, increases in nondefense expenditures were kept within bounds; some of the earlier 

excise tax reductions were rescinded; income taxes on individuals 

were subjected to more steeply graduated withholding; and corporate tax payments were speeded up. Moreover, additional payroll taxes under the social insurance program, provided for in

1965, became effective at the beginning of 1966.

The most conspicuous weak spot in 1966 was the decline in 

residential construction; private housing starts fell from a seasonally adjusted annual rate of 1.6 million units in January to a 20-year 

low of 848,000 in October. The most buoyant sector, on the other 

hand, was fixed capital investment by business, which posted a 

17 percent increase for 1966. The vigor of this demand, indeed, 

led in October to Congressional suspension of both accelerated 

depreciation on new buildings and the 7 percent tax credit for 

investment in machinery and equipment.

Credit markets under stress. With the economy moving forward 

in 1966 at high speed, after several years of above average growth, 

it is not surprising that demands on the money and capital markets 

were heavy. As the year progressed, the demand for funds was 

greater than expected, and the availability of funds failed to keep 

pace. On the demand side, business borrowing quickly moved 

ahead as business firms revised upward their plans for acquiring 

new plant and equipment. Increased physical volume of production and sales required additional financing of inventories and 

receivables, and rising prices required increased dollar investment 

per physical unit. Meanwhile, nonresidential construction was advancing, and an increasing proportion of these projects had to be 

externally financed. The flow of funds into the markets began to

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
ECONOMIC AND BANKING DEVELOPMENTS IN' 1966 7

fall well short of the volume sought by prospective borrowers.

Developments in the economy by late 1965 had resulted in 

mounting pressures on prices, accompanied by strains in the 

money market. At the time the Federal Reserve raised its rediscount rates to 41/2 percent, it also revised its Regulation Q, and 

the FDIC revised its Regulation 329, increasing to 5 1/2 percent the 

maximum permissible rate which insured commercial banks could 

pay on time deposits other than savings accounts. These revisions 

were intended to enhance the ability of banks to compete for funds 

with the money and capital markets.

During the early months of 1966 interest rates rose rapidly,

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
8 FEDERAL DEPOSIT INSURANCE CORPORATION

with short-term rates for the most part leading and long-term rates 

lagging, as indicated in Chart A. The rising rates reflected the unusual pressure on commercial banks to finance their business customers. The larger banks especially were faced with unprecedented 

loan demands, greater than they could meet by additional sales of 

their U. S. Government security holdings or by the sale of marketable certificates of deposit at or near the ceiling rate. Credit demands spilled over into the securities markets, already under 

pressure from a growing volume of public and private offerings.

As yields available on securities rose, individuals and other investors began to accelerate their purchases, either drawing down

CHART B THE SECURITIES MARKET

ATTRACTED A SIGNIFICANT SHARE OF SAVINGS IN 1966

CHANGE BY QUARTERS,

1964-1966

TIME DEPOSITS-COMMERCIAL BANKS DEPOSITS-MUTUAL SAVINGS BANKS

1966

SAVINGS AND LOAN SHARES

NET ACQUISITIONS

OF SECURITIES BY INDIVIDUALS

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
ECONOMIC AND BANKING DEVELOPMENTS IN 1966 9

their accumulated savings balances or diverting their current savings from banks and other savings institutions into securities, as 

shown in Chart B. For a time the large commercial banks were able 

to meet market competition by raising rates and shortening the 

maturities of their marketable certificates of deposit, but by summer 

many had reached the 51/2 percent ceiling and practically exhausted this means of raising new funds. Meanwhile, a few of the 

larger banks and a growing number of smaller banks had begun 

to issue automatically renewable multiple-maturity certificates, in 

smaller denominations, and at rates up to 51/2 percent. These gave 

the depositor something very close to a passbook savings account, 

but with a much higher yield. Thus many commercial banks were 

offering rates at least as attractive as those paid by other savings 

institutions.

Savings institutions meanwhile were continuing to try to meet 

mortgage loan demands. Many of them were already paying about 

as high a return as possible in view of the yields they were obtaining on their portfolios of long-term loans, most of which had 

been acquired when interest rates were much lower. Unable or 

unwilling to compete for funds on a rate basis with commercial 

banks, or with the securities markets, savings institutions were 

forced to restrict their lending, thus passing on to home-buyers, 

home-sellers and home-builders the burden of the credit squeeze.

Moderating the rise of interest rates. Against this background, 

the Corporation took action in July in support of efforts being made 

by the Federal Reserve to limit interest rate competition among 

financial institutions. The maximum rate payable by nonmember insured commercial banks on multiple-maturity time deposits was 

reduced from 51/2 percent to 5 percent on such deposits payable in 

90 days or more, and to 4 percent on such deposits payable in less 

than 90 days. Under legislation then in effect, however, neither the 

Federal Deposit Insurance Corporation nor the Federal Reserve 

Board had the power to reduce ceiling rates on what came to be 

known as savings-type certificates of deposit without also reducing 

the ceiling on the large, negotiable certificates. To have reduced 

this ceiling would have put many banks under severe pressure as 

billions of dollars of such certificates matured and could not be 

replaced under the then current rate pattern. It was apparent that 

existing regulatory powers of the supervisory agencies were inadequate to deal with the situation.

Effective September 21, a bill was enacted by the Congress 

providing the regulatory agencies with more flexibility in setting 

rate ceilings, and bringing savings and loan associations under rate 

regulation. The supervisory authorities were authorized to establish differential rate ceilings according to various criteria, and were

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
10 FEDERAL DEPOSIT INSURANCE CORPORATION

directed to consult with each other with the view to coordinating 

their actions.

The provision of most immediate significance in the new statute 

was the authority given to the regulatory agencies to establish a 

differential ceiling by size of certificate. Accordingly, the Federal 

Reserve and the Federal Deposit Insurance Corporation maintained 

a 5V2 percent maximum for single-maturity certificates of $100,- 

000 or more, but for certificates of smaller amounts the ceiling 

rate was dropped to 5 percent. Effective October 1, the Corporation also prescribed a 5 percent maximum rate on dividends or interest paid by insured mutual savings banks. At the same time, the 

Federal Home Loan Bank Board set differential ceilings on dividend 

rates payable by insured savings and loan associations, varying 

geographically and in other ways but generally somewhat higher 

than ceilings for commercial banks.

Shortly before the new regulations became effective, market 

rates of interest reached their peak and subsequently began a 

gradual decline. New flotations of security issues were reduced, 

and yields on outstanding issues softened. Meanwhile, the Federal 

Reserve requested that member banks restrain their loan commitments and maintain their holdings of securities. Also in September 

the reserve requirement on time deposits in member banks in 

excess of $5 million was increased from 5 percent to 6 percent; 

in July the requirement had been raised from 4 percent to 5 percent. Near the end of the year, however, the decline in mortgage 

demand accompanying the drop in residential construction activity 

had brought market forces into better balance, while suspension of 

the investment tax credit and the moderation of expansionary pressures enabled the Federal Reserve to take a less restrictive stance.

DISBURSEMENTS TO PROTECT DEPOSITORS

Bank failures in 1966. During 1966 the Corporation disbursed 

$15 million to protect depositors of seven failing banks, the largest 

sum expended for that purpose for any year but one since 1941. As 

in other recent years, managerial weakness and illegal practices 

in the banks involved, rather than economic conditions, were primarily responsible for the failures. It is usually difficult to identify 

the basic or proximate causes of failure, for by the time a bank has 

reached the failing stage, it has usually experienced a number of 

problems. Among the practices contributing to failure in 1966 may 

be noted misuse of funds by bank officials, kiting operations, collusion with borrowers, contests for bank control, the extension of 

substandard, high-risk loans, expensive promotions, and operating 

with inadequate capital.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
DISBURSEMENTS TO PROTECT DEPOSITORS 11

The seven insured banks requiring FDIC assistance in 1966 fall 

into two general types. Five were small banks in communities of 

no more than 500 population which each had served for over 50 

years. The other two banks had been established within the past 

decade and were located in metropolitan areas; one of them was 

the largest bank to fail since 1933. Table 2 gives the name, location, and other information about each of these banks.

The seven banks failing in 1966 had approximately 95,000 deposit accounts and $103 million in deposits. Paralleling the failure 

pattern in 1965, one bank alone accounted for 90 percent of these 

deposits. In one case, the Corporation paid off depositors directly 

up to the insurance limit— then $10,000. In the other six cases, depositors were fully protected by virtue of different methods of assistance used by the Corporation. In four of the failures occurring 

in 1966, banking facilities were maintained at the location of the 

failed bank, either by establishment of branches or a new bank.

Deposit insurance national banks. Establishment of Deposit Insurance National Banks is one of the means available to the Corporation for providing banking service to a community when a bank 

fails. Services provided by this means are limited and temporary.

Table 2. INSURED BANKS CLOSED DURING 1966 REQUIRING

DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION 1

Case

number

Name and

location

Date of

closing

or deposit

assumption

Number

of depositors'

accounts

Amount of

deposits

(in thousands)2

FDIC

disbursement

(in thousands)

Depositors

receiving

full recovery

Deposits

paid

(in thousands)3

T o ta 1.......................... 95,4244 $103,5234 $15,071 95,4244 $103,5234

D e p o s it p a y o ff

278 Citizens Bank,

Pottsville, Arkansas

January 24,1966 1,012 774 732 997 767

D e p o s it a s s u m p tio n

115 Five Points

National Bank,

Miami, Florida

January 12, 1966 3,0724 2,9664 1,217 3,0724 2,9664

207 Blanket State Bank,

Blanket, Texas

January 31,1966 1,556 1,183 818 1,556 1,183

208 Saguache County

National Bank,

Saguache, Colorado

March 17,1966 712 725 472 712 725

209 Bank of Gray Summit, April 7, 1966

Gray Summit, Missouri

3,630 1,834 1,021 3,630 1,834

279 Public Bank,

Detroit, Michigan

October 12,1966 83,044 92,960 10,000 83,044 92,960

116 First State Bank,

of Tuscola,

Tuscola, Texas

October 17, 1966 2,398 3,081 811 2,398 3,081

1 Figures adjusted to and as of December 31,1966.

2 Includes certain certificates of deposit carried on the books of some of the closed banks as deposits which are in

litigation.

3 Includes $732 thousand paid by FDIC claim agents in deposit payoff cases. All deposits were made available in

full through assuming banks, with FDIC assistance, in deposit assumption cases.

4 Revised from first printing of Part One of this Report.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
12 FEDERAL DEPOSIT INSURANCE CORPORATION

Two such banks organized in 1964 to serve this purpose were 

closed during 1966, in accordance with the statutory requirement 

that such a bank be liquidated if it is not transferred to private 

ownership within two years of its establishment.

Banks failing and depositors protected, 1934-1966. Since the 

beginning of Federal deposit insurance, the Corporation has made 

disbursements to protect depositors in 466 failing banks. These 

banks had approximately 1.6 million depositors or accounts and deposits totaling $804 million. The extent and method of protection 

are shown in Table 3.

Table 3. PROTECTION OF DEPOSITORS OF INSURED BANKS REQUIRING

DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,

1934-1966

Item

All cases

(466 banks)

Deposit payoff

cases

(276 banks)

Deposit

assumption cases

(190 banks)

Number or

amount Percent

Number or

amount Percent

Number or

amount Percent

N u m b e r o f d e p o s ito rs o r a c c o u n ts

— t o t a l 1.................................................. 1,627,868 100.0% 497,269 100.0% 1,130,599 100.0%

F u ll re c o v e ry re c e iv e d o r a v a ila b l e ......................................................

From FDIC2................................................

From offset 4..............................................

1,616,060

1,570,686

39,597

2,947

2,830

11,808

99.3

96.5

2.4

485,461

440,0873

39,597

2,947

97.6

88.5

7.9

1.130.599

1.130.599

100.0

100.0

From security or preference 5................. .2 .6

From asset liquidation 6........................... .2 2,830

11,808

3,295

8,513

$235,118

.6

F u ll re c o v e ry n o t re c e iv e d a s o f

D e c e m b e r 3 1 , 1 9 6 6 ................. .7 2.4

Terminated cases...................................... 3,295

8,513

$805,366

.2 .7

Active cases 7.............................................. .5 1.7

A m o u n t o f d e p o s its (in th o u s a n d s )

— t o t a l...................................................... 100.0% 100.0% $570,248 100.0%

P a id o r m a d e a v a ila b le .................. 779,287 96.8 209,039 88.9 570,248 100.0

By FD IC 2....................................................

By offset 9 ...................................................

725,640

12,503

24,284

16,860

26,079

90.1

1.6

155,392s

12,503

24,284

66.1

5.3

570,248 100.0

By security or preference 10.................... 3.0 10.3

By asset liquidation 11.............................. 2.1 16,860

26,079

7.2

N o t p a id a s o f D e c e m b e r 31',

1 9 6 6 ...................................................... 3.2 11.1

Terminated cases......................................... 1,848

24,231

.2 1,848 .8

Active cases 12............................................. 3.0 24,231 10.3

1 Number of depositors in deposit payoff cases; number of accounts in deposit assumption cases.

2 Through direct payment to depositors in deposit payoff cases; through assumption of deposits by other insured banks,

facilitated by FDIC disbursements of $212,876 thousand, in deposit assumption cases.

3 Includes 57,991 depositors in terminated cases who failed to claim their insured deposits (see note 8).

4 Includes only depositors with claims offset in full; most of these would have been fully protected by insurance in the

absence of offsets.

5 Excludes depositors paid in part by FDIC whose deposit balances were less than the insurance maximum.

6 The insured portions of these depositor claims were paid by the Corporation.

7 Full recovery available to 8,344 of these depositors.

8 Includes $202 thousand unclaimed insured deposits in terminated cases (see note 3).

9 Includes all amounts paid by offset.

10 Includes all secured and preferred claims paid from asset liquidation; excludes secured and preferred claims paid

by the Corporation.

11 Includes unclaimed deposits paid to authorized public custodians.

12 Includes $9,989 thousand representing deposits available but unclaimed, expected through offset, or expected

from proceeds of liquidations; and $344 thousand representing up to $10,000 of each of certain certificates of deposit

whose insured status is in litigation.

Note: Includes revision indicated in footnote 4 of Table 2.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
DISBURSEMENTS TO PROTECT DEPOSITORS 13

In 190 of these cases, the deposit liabilities of the failing bank 

were assumed by another insured bank, with the Corporation taking 

over by purchase or loan the assets of the distressed bank unacceptable to the absorbing bank. Under this procedure, deposits 

are immediately available in full to all depositors.

In the remaining 276 cases, the banks were closed by the chartering agency, and the Corporation paid off depositors directly up 

to the insured maximum. Reflecting changes since 1934 in maximum coverage, one case provided protection up to $2,500 for 

each depositor, 244 cases up to $5,000, and 31 cases up to $10,000. 

The payoff method of protection has been used in about 60 percent 

of the failing bank cases. These have ordinarily been the smaller 

banks, which had about 30 percent of the depositors and a like percentage of the deposits in all failed bank cases.

As of the end of 1966, 96.8 percent of all deposits in failed bank 

cases had been paid or made available. Of the amount not then 

paid, over one-third was available but unclaimed; recovery of the 

remainder depends on the outcome of the liquidation process. As 

indicated in Chart C, losses to depositors in failing banks have 

been small during the period of the Corporation’s operation.

CHART C LOSSES TO DEPOSITORS AND TO THE FDIC 

THROUGH 1966 HAVE BEEN SMALL IN CLOSED 

INSURED BANKS

TOTAL DEPOSITS

$805,366,000

DISBURSEMENTS

BY FDIC

LOST BY FDIC $47,895,000

LOST OR N O T Y E T AVAILABLE 

TO DEPOSITORS $26,079,000

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
14 FEDERAL DEPOSIT INSURANCE CORPORATION

Corporation disbursements and losses, 1934-1966. In return for 

the disbursements made in failing bank cases, the Corporation 

acquires assets, which it liquidates, or the claims of depositors 

whose insured deposits it has paid. In receivership cases the Corporation shares pro rata with other creditors in the proceeds from 

the liquidation.

At the end of 1966, some assets were yet to be liquidated from 

36 failed bank cases. These active cases account for most of the 

accounts and deposits indicated as not yet paid in Table 3. Excluding these, and considering only terminated cases, only 0.2 

percent of the deposits in all closed insured banks had not been 

paid by the end of 1966.

The Corporation had disbursed or provided for disbursements 

of $421 million in its insurance operations through 1966. Actual and 

anticipated recoveries through the end of 1966 totaled $373 million, 

resulting in losses to the Corporation estimated at $48 million, excluding $9 million of interest and allowable return recovered on 

the Corporation’s advances. Details of Corporation disbursements, 

recoveries and losses are shown in Table 4.

Table 4. ANALYSIS OF DISBURSEMENTS, RECOVERIES AND LOSSES 

IN DEPOSIT INSURANCE TRANSACTIONS,

JANUARY 1, 1 9 3 4 -DECEMBER 31, 1966

(In thousands)

Type of disbursement Disbursements Recoveries1 Losses

A ll d is b u r s e m e n ts — t o t a l .................................................................... $421,233 $373,338 $47,895

P r in c ip a l d is b u r s e m e n ts in d e p o s it a s s u m p tio n a n d

p a y o ff c a s e s — t o t a l .................................................................... $368,570 $323,346 $45,224

Loans and assets purchased (190 deposit assumption cases):

To December 31, 1966............................................................................. $212,876 | $186,462 1

8,373 /

120,231 \

8,280 /

$18,041 Estimated additional................................................................................

Deposits paid (276 deposit payoff cases):

To December 31, 1966...........................................................................

Estimated additional..............................................................................

155,201 \

493 / 27,183

A d v a n c e s a n d e x p e n s e s in d e p o s it a s s u m p tio n a n d

p a y o ff c a s e s — t o t a l ..................................................................... $ 50,596 $ 47,557 5 3,039

Expenses in liquidating assets in deposit assumption cases:

Advances to protect assets................................................................... $ 32,883

14,674

360

2,679

$ 32,883

14,674

(2)

(2)

Liquidation expenses.............................................................................

Insurance expenses................................................................................

Field payoff and other insurance expenses............................................

360

2,679

O th e r d is b u r s e m e n ts — t o t a l ......................................................... $ 2,067 $ 2,435 $ (368)

Assets purchased to facilitate termination of liquidations:

To December 31,1966............................................................................. $ 1,772 | $ 2,420 \

15 J $ (663) Estimated additional................................................................................

Unallocated insurance expenses................................................................ 295 (2) 295

1 Excludes amounts returned to closed bank equity holders and $9.3 million of interest and allowable return received

by the Corporation.

2 Not recoverable.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
SUPERVISORY ACTIVITIES 15

SUPERVISORY ACTIVITIES

The major role played by banks in the nation’s financial structure has long subjected them to some measure of public supervision. Through the acceptance, creation and payment of deposits 

they perform a vital monetary function, and provide funds to meet 

the myriad demands for credit of a dynamic economy.

Banks within the jurisdiction of the Corporation’s supervisory 

responsibility must obtain its permission to take several types of 

action, such as the establishment of branches or merger with 

another bank. They are subject to examination by the Corporation 

and to certain sanctions, notably cease-and-desist orders and 

termination of insurance. They are also required to submit various 

types of reports, and are subject to the interest rate regulations 

applicable to savings and time deposits.

Applications for deposit insurance. Banks chartered as national 

banks, and State banks becoming members of the Federal Reserve System, acquire insured status without application to the 

Federal Deposit Insurance Corporation. Banks chartered by the 

States and not members of the Federal Reserve, as well as uninsured operating banks, become insured upon application to and 

approval by the Corporation. The following factors, specified by 

statute, must be considered by the responsible supervisory agency 

with respect to banks seeking to be admitted to deposit insurance: 

(1) the financial history and condition of the bank, (2) the adequacy 

of its capital structure, (3) its future earnings prospects, (4) the 

general character of its management, (5) the convenience and 

needs of the community to be served by the bank, and (6) the consistency of its corporate powers with the purposes of the Act.

During 1966, the Corporation approved a total of 104 applications for admission to insurance, including 80 new banks and 24 

existing banks.

Applications for branches. In giving approval for the establishment 

of branches of insured banks not members of the Federal Reserve 

System, the Corporation must consider the same six factors enumerated above. A total of 397 applications for new branches was approved by the Corporation in 1966, 14 percent more than in 1965. 

An additional 28 branches resulted from mergers approved by the 

Corporation.

For several years the number of banking offices has been steadily rising, a trend which reflects many factors, including the growth 

of population and shifts in the locational patterns of population. 

Most of the increase in offices in recent years has been as new 

branches.

Merger transactions. Bank merger transactions have been one 

of the more active areas of bank supervision in recent years, reDigitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
16 FEDERAL DEPOSIT INSURANCE CORPORATION

fleeting the Federal supervisory agencies’ increased responsibility 

under the 1960 amendment to the Federal Deposit Insurance Act. 

Under this amendment, an insured bank must obtain approval of 

one of the Federal banking agencies to engage in any merger, 

consolidation, acquisition of assets or assumption of liabilities transaction. The Corporation’s approval is required if the surviving bank 

is a nonmember insured bank, or in a merger of any insured bank 

with a noninsured institution.

An amendment in 1966 provided that, in passing upon each application, the responsible agency shall consider several specific 

factors, including the effect of the transaction on competition, 

financial and managerial resources, future prospects of the exCHART D FDIC HAS ACCOUNTED FOR ABOUT ONE-FOURTH OF 

FEDERAL AGENCY APPROVALS OF BANK MERGERS SINCE 1960

H 3 APPROVED BY COMPTROLLER OF CURRENCY 

APPROVED BY FEDERAL RESERVE BOARD

APPROVED BY FDIC

1960* 1961 19 62

•Period beginning May 13, 1960 to end of year.

1963 1964 1966

isting and proposed institutions, and the convenience and needs 

of the community to be served. A merger proposal whose effect is to 

substantially lessen competition may be approved if the anticompetitive factor is clearly outweighed in the public interest by the 

convenience and needs of the community served.

Chart D shows the merger applications approved each year 

since 1960 by the three Federal agencies. An analysis of applications approved by the Corporation indicates that, for absorbing 

banks, the desire to expand services to customers and to gain representation in certain localities through branches was important in

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
SUPERVISORY ACTIVITIES 17

many cases. The reasons most often cited in the case of absorbed 

banks included the problem of management succession, poor earnings performance, and inability to provide adequate banking services or to meet competition.

During 1966, as shown in Table 5, the Federal banking agencies 

approved mergers involving 255 banks, including 119 absorbing 

banks and 136 absorbed banks. The Corporation approved cases 

involving 71 banks, including 35 absorbing banks and 36 absorbed 

banks. Details of each case approved by the Corporation in 1966 

are shown in Table 15.

Table 5. MERGERS, CONSOLIDATIONS, ACQUISITIONS OF ASSETS

AND ASSUMPTIONS OF LIABILITIES APPROVED UNDER SECTION 18(c)

OF THE FEDERAL DEPOSIT INSURANCE ACT DURING 1966

Offices operated2

Banks

Number

of banks1

Resources

(in thousands)2

Prior to

transaction

After

transaction

ALL CASES

Banks involved.......................................... 2553 $21,760,374 1,930 1,920

Absorbing banks...................................................... 1194 2 0 ,114,9074 1,6884 1,9204

Absorbed banks....................................................... 1363 1,645,467

506,722

281,869

836,044

20,8324

242

National................................................................. 55 105

State banks members FRS................................ 22 40

Not members FRS............................................... 52 93

Noninsured institutions...................................... 74 44

CASES WITH RESULTING BANK

A NATIONAL BANK5

Banks involved........................................... 1436 $ 9,607,8746 1,032 1,026

Absorbing banks...................................................... 64 8,815,000 885 1,026

Absorbed banks....................................................... 79 792,874

402,756

168,165

215,222

6,731

147

National................................................................. 41 82

State banks members FRS................................ 13 24

Not members FRS............................................... 24 40

Noninsured institution....................... ................ 1 1

CASES WITH RESULTING BANK A

STATE BANK MEMBER OF THE

FEDERAL RESERVE SYSTEM

Banks involved........................................... 43 $ 8,487,900 548 548

Absorbing banks...................................................... 21 7,874,300 500 548

Absorbed banks....................................................... 22 613,600

39,600

78,000

495,800

200

48

National................................................................. 4 10

State banks members FRS................................ 7 14

Not members FRS............................................... 10 24

Noninsured institution....................................... 1 (nonoperating)

CASES WITH RESULTING BANK NOT

A MEMBER OF THE

FEDERAL RESERVE SYSTEM7

Banks involved.......................................... 71 $'4,068,793 387 383

Absorbing banks...................................................... 35 3,823,069 339 383

Absorbed banks....................................................... 363 245,724

64,366

35,704

125,022s

20,632

48

National................................................................. 10 13

State banks members FRS................................ 2 2

Not members FRS............................................... 18 298

Noninsured institutions...................................... 63 4

1 The number of absorbing banks is smaller than the number of cases, because a few banks participated in more

than one case.

2 Where an absorbing bank engaged in more than one transaction, the resources included are those of the bank before

the latest transaction, and the number of offices before the first and after the latest transaction.

3 Includes 4 institutions other than banks (1 savings and loan association and 3 safe deposit companies).

4 Merger case No. 13 in Table 15 was reported also as an approved case by the Office of the Comptroller of the Currency. This case is included only once in the totals in this table.

5 Includes two cases effective on Jan. 1, 1966 approved in 1965; excludes two cases effective on Jan. 1, 1967

approved in 1966.

6 Some data in this gro up, reflected also in totals, have been revised since the first printing of Part One of this Report.

7 Includes five cases approved by the Corporation of absorptions of noninsured institutions by member banks.

8 In one case an approved new bank absorbed a branch of a State nonmember bank; resources and office of branch

are included in this table.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
18 FEDERAL DEPOSIT INSURANCE CORPORATION

Other applications. Other activities for which insured nonmember 

banks must obtain the Corporation’s approval include any change 

in the location of a main office or branch, retirement or adjustment 

of capital, or change in a bank’s corporate powers.

Bank examinations. Examinations are one of the oldest and most 

significant tools of bank supervision. They are the instrument by 

which the Corporation seeks to attain and maintain, within its 

scope, the conditions of sound banking essential to the viability 

of deposit insurance. Examinations provide the Corporation with 

information concerning its insurance risk and alert it to conditions 

which may require corrective measures.

Though certain quantitative measures are employed in examinations, the examination is basically a qualitative appraisal of the 

soundness of a bank’s operations. An examination involves ascertaining the character and amount of a bank’s assets and liabilities, 

a detailed appraisal of assets, a review of the bank’s policies and 

procedures, an evaluation of management, and a determination of 

whether all pertinent statutes and regulations are being observed. 

Variations in economic conditions, the changing nature of bank 

operations, and individual characteristics of particular banks provide a continuing challenge to the bank examiner. New areas of

CHART E BANKS EXAMINED REGULARLY BY FDIC, ABOUT 

HALF OF ALL BANKS, HOLD ONE-FOURTH 

OF ALL BANK ASSETS

NUMBER OF BANKS ASSETS OF BANKS

14,328 $448 BILLION

EXAMINED BY AND REPORTING TO:

1 H COMPTROLLER OF THE CURRENCY I I STATE AUTHORITIES AND FDIC

STATE AUTHORITIES AND l l f l STATE AUTHORITIES ONLY

FEDERAL RESERVE BANKS

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
SUPERVISORY ACTIVITIES 19

development, such as the accelerating trend of automation, the 

proliferation and expansion of banking services, and the changing 

role of banks in financial intermediation have added to the examiners’ concerns. Through its examinations and other means, the 

Corporation seeks to assist banks in adjusting to the new environment without, however, infringing upon the prerogatives and primary responsibility of bank management.

The tripartite Federal supervision of banks is observed in bank 

examinations, resulting in minimal duplication of effort notwithstanding some overlap of responsibility. The Corporation regularly examines insured State banks which are not members of the 

Federal Reserve System, except those located in the District of

Table 6. BANK EXAMINATION ACTIVITIES OF THE FEDERAL 

DEPOSIT INSURANCE CORPORATION IN 1965 AND 1966

Number

A ctivity

1966 1965

F ield e x a m in a tio n s a n d in v e s tig a tio n s — t o t a l ................................................... 13,663 12,981

E x a m in a tio n s o f m a in o ffic e s — t o t a l ................................................................... 6,980 6,796

Regular exam inations of insured banks not members of Federal Reserve S ystem .......... 6,815 6,618

Re-exam inations; or other than regular exam inations.......................................................... 144 146

Entrance examinations of operating noninsured banks......................................................... 21 32

E x a m in a tio n s o f d e p a rtm e n ts a n d b r a n c h e s ................................................. 4,832 4,439

Examinations of trust departm ents............................................................................................... 1,114 1,056

Examinations of branches................................................................................................................ 3,718 3,383

In v e s tig a tio n s ........................................................................................................................ 1,851 1,746

New bank investigations.................................................................................................................. 169 151

S tate banks m em b ers of F e d e ra l R eserve S y s te m ........................................ 14 6

B anks no t m em b ers of F e d e ra l R eserve S y s te m ............................................ 155 145

New branch investigations............................................................................................................... 462 435

Mergers and consolidations............................................................................................................. 160 144

Miscellaneous investigations........................................................................................................... 1,060 1,016

W a s h in g to n o ffic e re v ie w o f re p o rts o f e x a m in a tio n o f in s u re d

b a n k s — t o t a l.................................................................................................................. 9,418 9,077

National banks..................................................................................................................................... 1,676 1,607

State banks members of Federal Reserve System................................................................. 789 603

State banks not members of Federal Reserve S ystem .......................................................... 6,953 6,867

Columbia, which are under the jurisdiction of the Comptroller of 

the Currency. Banks examined by the Corporation comprise about 

one-half of all banks and account for about one-fourth of all bank 

assets, as indicated in Chart E. In over one-half of the States, these 

examinations may be made jointly or concurrently with the respective State supervisory authorities. As a rule the Corporation 

itself does not examine national banks or State banks which are 

members of the Federal Reserve System, but it reviews the reports 

of examination made by the other Federal agencies.

The Corporation’s examiners operate out of offices located in 

different sections of the nation. In addition to their examination

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
20 FEDERAL DEPOSIT INSURANCE CORPORATION

work, they conduct investigations relating to applications for insurance, branches, mergers and similar matters. Recommendations 

based on these investigations, after appropriate review, provide the 

basis for decision by the Corporation’s Board of Directors.

During 1966 the Corporation examined 6,980 banks, including 

144 re-examinations. The 1,851 investigations made during 1966 

continued at the high level characteristic of recent years. Numbers of examinations, investigations, and reports reviewed during 

1966 are shown in Table 6.

Cease-and-desist orders. Whenever examination of a bank reveals unsound practices or violations of law, the Corporation is 

ordinarily able through cooperative efforts to obtain correction of 

the offending practice or situation. When persistent efforts in this 

direction have failed to effect a correction, the Corporation has on 

occasion invoked its authority to initiate proceedings to terminate 

the bank’s insurance. Termination of deposit insurance, however, 

is a drastic action to be used sparingly, and the Corporation has 

been reluctant to employ it in cases which continue to offer hope 

of cooperative agreement.

An intermediate degree of authority, which could be directed 

more precisely at the particular offense, was obtained in an Act 

effective October 16, 1966. This Act empowers the Corporation, 

when corrective action is not obtainable by the State supervisory 

authority, to issue cease-and-desist orders in regard to specific 

violations or practices or, in situations involving personal dishonesty, to suspend or remove personnel responsible for such actions. 

Detailed provisions of the Act are given in the Legislation Section 

of this report.

Citations contemplating termination of insurance. When unsound 

banking practices or violations of law. persist, the Corporation has 

responsibility to institute proceedings for termination of the bank’s 

insurance. This action was taken twice during 1966. One of these 

cases was closed when the bank suspended operation, while the 

other was pending at year-end.

The year started with a backlog of four pending cases. Three of 

these were closed during 1966 following necessary corrections; 

in the other case action was deferred.

Actions to terminate insurance have been initiated 195 times 

during the Corporation’s history. In only 12 cases have proceedings continued to the point where insurance has been terminated. 

The outcome of all termination proceedings begun under Section 

8(a) of the Federal Deposit Insurance Act is shown in Table 7.

Regulation of bank securities. The registration and reporting provisions of the Securities Exchange Act of 1934 were extended to 

securities issued by banks under terms of Public Law 88-467, effecDigitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
SUPERVISORY ACTIVITIES 21

Table 7. ACTIONS TO TERMINATE INSURED STATUS OF BANKS 

CHARGED WITH UNSAFE OR UNSOUND BANKING PRACTICES OR 

VIOLATIONS OF LAW OR REGULATIONS, 1936-1966

Disposition or status 1936-19661 Started 

during 1966

T o ta l b a n k s a g a in s t w h ic h a c tio n w as t a k e n ......................................................... 195 2

C a s e s c lo s e d ...........................................................................................................................

Corrections made...................

193

76

1

Banks absorbed or succeeded by other b a n k s ... ........................................ 69

W ith fin a n c ia l a id of the C o rp o ra tio n .................................................................. 62

W ithout fin a n c ia l a id of the C o r p o r a tio n ............................................................ 7

Banks suspended prior to setting date of term ination of insured status by Corporation. 

Insured status term inated, or date for such term ination set by Corporation, for failure 

to make corrections . .......................................................

36

12

1

Banks su sp en d ed p rio r to or on d ate of term in atio n of in s u red status

Banks c o n tin u e d in o p e ra tio n 2 ................................................................... ..

9

3

C a s e s n o t clo s e d D e c e m b e r 31, 1 9 6 6......................................................................

Action deferred pending analysis of exam ination ...................................................................

2

2

1

1

1 No action to term inate the insured status of any bank was taken before 1936. In 5 cases where initial action was 

replaced by action based upon additional charges, only the latter action is included.

2 One of these suspended 4 months after its insured status was terminated.

tive August 20, 1964. The Federal Deposit Insurance Corporation 

has administrative responsibility for the Act with respect to insured 

State nonmember banks.

The legislation had its first major impact during 1965, when the 

Corporation received registration statements from 76 banks, all 

but one of which remained effectively registered throughout the 

year. In 1966, the number of registered banks increased to 82 as 

a result of 10 new registrations and the withdrawal of three banks 

through mergers and one through conversion to a national charter. 

Effective July 1, 1966, in accordance with statutory provisions, the 

minimum stockholder requirement for registration declined from 

750 to 500. However, since this measure is applied as of the last day 

of the bank’s fiscal year and most banks operate on the basis of 

a coincident fiscal-calendar year, the effect of the stricter requirement will not be felt until 1967.

In accordance with further requirements under this statute, the 

Corporation also received annual reports, current reports, and 

proxy statements from registered State nonmember banks, as well 

as beneficial stock ownership reports from each of the banks’ 

directors, officers, and large stockholders. During the year nearly 

1,900 changes in beneficial ownership were reported.

Changes in bank ownership and loans secured by bank stock.

During 1964 several insured banks failed as the result of a rapid 

and drastic deterioration in asset quality following a change in 

management control. In an effort to maintain closer supervision 

over this problem, the Corporation sponsored a measure enacted 

as Public Law 88-593, effective September 12, 1964. This measure

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
22 FEDERAL DEPOSIT INSURANCE CORPORATION

is designed to alert the Corporation to changes in control of management of insured banks so that the character of new management may be immediately investigated and supervisory action 

taken if appropriate.

Under this law, the president or other chief executive officer of 

an insured bank is required to report promptly to the appropriate 

Federal banking agency the facts about changes occurring in the 

ownership of outstanding voting stock which will result in a change 

in control of the bank. Where there has been a change in control, 

each insured bank is also required to report any changes or replacements in the chief executive officer or directors occurring 

during the next year. Furthermore, any loan secured by 25 percent 

or more of the outstanding voting stock of an insured bank must 

also be reported by the president or chief executive officer of the 

lending bank to the Federal banking agency having supervisory 

responsibility for the bank whose stock secures the loan. Copies of 

all reports received by the other Federal banking agencies must 

be furnished to the Corporation.

There were 424 changes in control and 223 loans reported under 

these requirements for 1966 and received through January 31, 

1967. Over two-thirds of the reported changes in control involved 

banks supervised by the Corporation. As might be expected, most 

of the changes in control occurred in relatively small banks.

Every reported change of control is investigated to the extent 

warranted. If information is developed which provides a basis for 

believing that the new ownership may be inimical to the best interests of depositors, the bank is promptly placed under intensive 

supervision. The bulk of reported changes in control, however, 

have not required special supervisory attention.

Other reports from banks. The Corporation obtains statistical and 

other information from banks by means of periodic calls for reports 

of condition and through special requests for information from 

time to time. Every insured bank reports its financial condition 

four times each year to one of the Federal supervisory agencies; 

nonmember insured banks report directly to the Corporation. Income and dividend statements are obtained from banks once each 

year.

In 1947 the Corporation was given responsibility for collection 

and publication of all-bank statistics under an agreement arranged 

by the Bureau of the Budget with the Federal banking agencies. In 

connection with this, the Corporation publishes asset and liability 

data covering noninsured banks; however, it does not collect or 

report income data concerning these banks.

During 1966 the Corporation conducted a special survey of interest rates paid on time and savings deposits of insured nonmember

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
SUPERVISORY ACTIVITIES 23

banks. The purpose was to obtain information on current conditions 

in the market for savings, complementing an identical survey of 

member banks made by the Federal Reserve System. The survey 

provided information not previously available on interest rates and 

amounts for major types of time and savings deposits held by individuals and businesses as of May 11, 1966, March 2, 1966 and 

December 3, 1965.

A survey of deposits in insured banks was made by the Corporation as of June 30, 1966. This survey differed from previous such 

surveys, which have been conducted periodically since 1934, in 

two significant respects. First, data were reported separately for 

savings deposits of individuals and businesses; second, data were 

reported for each banking office, in contrast to previous surveys 

wherein each bank (with its branches) was a reporting unit. The 

new information is expected to be particularly helpful in the analysis of banking markets.

Conferences with supervisors of state banks. In March 1966, Corporation officials met with State banking authorities of the States 

comprising FDIC Districts 9, 10, and 11. This was the fifth and concluding conference of a series which was initiated in mid-1964 to 

provide State and Corporation officials an informal opportunity to 

review industry developments and discuss other matters of mutual 

interest. The discussion focused on State and Federal banking laws 

and regulations and legislative proposals at the State and Federal 

levels which would affect bank supervision.

The second series of conferences was initiated in September 

1966. In attendance at this conference were State banking authorities and staff aides from the 13 States which comprise FDIC Districts 3, 7, and 12. Among the topics discussed were money market 

conditions and questions of common concern in the area of examinations and bank investigations. It is presently contemplated that 

there will be two such meetings each year, which will bring the 

second series to a close during 1968.

FEDERAL LEGISLATION

Amendment of 1960 Bank Merger Act. The Bank Merger Act of 

1960 was amended by an Act of Congress approved February 21, 

1966 (Public Law 89-356). The main purpose was to resolve conflicts 

which had arisen concerning the interpretation of the Merger Act. 

To this end an attempt was made in the new Act to have the bank 

supervisory authorities, the Department of Justice, and the Courts 

take into account the same set of standards in their actions with 

respect to mergers. It was required that consideration be given to 

the effect that a proposed merger might have in creating a moDigitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
24 FEDERAL DEPOSIT INSURANCE CORPORATION

nopoly, substantially lessening competition, or restraining trade, 

but provided that a merger might be approved if the anticompetitive effects were clearly outweighed in the public interest by the 

probable effect with respect to the convenience and needs of the 

community to be served. The consummation of a merger, in usual 

circumstances, could not take place until 30 days after approval by 

the appropriate supervisory authority in order to give the Department of Justice an opportunity to contest the merger in the courts, 

if it so desired. If a suit were not filed within that period, the merger 

could not thereafter be attacked judicially on the ground that it was 

a violation of an antitrust law other than section 2 of the Sherman 

Antitrust Act. The new Act also contained special provisions concerning pending and future judicial attacks on mergers previously 

approved.

Amendment of 1956 Bank Holding Company Act. The Bank Holding Company Act of 1956 was amended in numerous respects by 

an Act approved July 1, 1966 (Public Law 89-485). Among other 

things, the coverage of the Bank Holding Company Act was extended to long-term, nonbusiness trusts; and exemptions for nonprofit religious, charitable, and educational organizations, companies registered under the Investment Company Act of 1940 and 

their affiliates, and certain agricultural companies, were repealed. 

The standards and procedures prescribed for bank merger cases 

by the Act of February 21, 1966, discussed above, were made applicable to the approval of proposed acquisitions, mergers, and consolidations under the Bank Holding Company Act. Provisions relating to loans and investments by subsidiary banks involving other 

companies within the same holding company group were repealed. 

At the same time, section 23A of the Federal Reserve Act, relating 

to loans and other dealings between member banks and their 

affiliates, was amended in numerous respects and was given 

broader application. Of particular significance, section 23A was 

extended to apply to insured nonmember banks as well as member 

banks.

Regulation of interest rates. An Act containing temporary interest rate control provisions (Public Law 89-597) was approved by 

the President on September 21, 1966, and unless extended, will 

expire at the end of one year. The Act directed the Secretary of the 

Treasury, the Board of Governors of the Federal Reserve System, 

the Federal Deposit Insurance Corporation, and the Federal Home 

Loan Bank Board to take action to reduce interest rates to the 

maximum extent feasible. The provisions of the Federal Reserve 

Act which directed the Board of Governors to prescribe maximum 

rates of interest payable on time and savings deposits in member 

banks were amended to provide that the Board, after consulting

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL LEGISLATION 25

with the Federal Deposit Insurance Corporation and the Federal 

Home Loan Bank Board, may limit by regulation the rates of interest which may be paid on such deposits. Thus, consultation was 

required and the regulation of interest rates payable by member 

banks was put on a discretionary basis instead of the mandatory 

basis previously prescribed. The Act also was amended to provide 

additional bases for differentiating between deposits, and as 

amended empowered the Board of Governors to prescribe different rate limitations on the basis of different classes of deposits, 

deposits of different amounts or with different maturities or subject 

to different conditions regarding withdrawal or repayment, according to the nature or location of member banks or their depositors, or according to such other reasonable bases as the Board 

may deem desirable in the public interest.

The provisions of the Federal Deposit Insurance Act authorizing 

the regulation of rates of interest payable by insured nonmember 

banks were amended in like manner. Interest rate limitations were 

placed on a discretionary basis, consultation was required before 

changes in rates, different rate limitations were authorized for different types and classes of deposits, and insured nonmember mutual savings banks were explicitly mentioned. In addition, the Act 

gave similar authority to the Federal Home Loan Bank Board with 

respect to the regulation of rates payable by institutions which are 

insured institutions as defined in section 401(a) of the National 

Housing Act and those member institutions subject to regulation by 

the Board. This subjected savings and loan associations to such 

dividend rate limitations for the first time. Other provisions of the 

Act amended the Federal Reserve Act to increase the maximum 

reserve requirements for time and savings deposits and to authorize 

Federal Reserve open-market operations in obligations of agencies 

of the United States.

Cease-and-desist legislation. The Financial Institutions Supervisory Act of 1966 (Public Law 89-695), approved on October 16,

1966, was designed primarily to provide the means for more effective supervision of insured banks and savings and loan associations. The Federal Deposit Insurance Corporation, the Comptroller 

of the Currency, the Board of Governors of the Federal Reserve 

System, the Federal Home Loan Bank Board, and the Federal Savings and Loan Insurance Corporation were authorized to issue 

temporary and permanent cease-and-desist orders to insured institutions with respect to violations of law, rule, regulation, charter, 

or written condition or agreement, or with respect to unsafe or 

unsound practices. In addition, another new remedy was provided 

by empowering the supervisory authorities to take action to suspend or remove officers or directors of insured institutions for

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
26 FEDERAL DEPOSIT INSURANCE CORPORATION

violation of law, ruling, regulation or a final cease-and-desist order, 

or for engaging or participating in any unsafe or unsound practice, 

when personal dishonesty is involved. Provision also was made for 

suspension or removal of persons convicted of any criminal offense 

involving dishonesty or a breach of trust or charged with a felony 

of that nature. In addition to these new grants of authority, the Act 

amended various provisions of existing law, including those relating to the termination of deposit and share account insurance. All 

of the above-mentioned provisions of the Act will expire on June 

30, 1972, unless further action is taken to continue them in effect.

Increase in insurance coverage. In the course of final passage, 

there were added to the Financial Institutions Supervisory Act of 

1966 provisions of a permanent nature, which increased the maximum insurance coverage provided by the Federal Deposit Insurance Corporation and the Federal Savings and Loan Insurance 

Corporation from $10,000 to $15,000 for each depositor or share 

account holder. The two Corporations also were authorized to define, with such classifications and exceptions as they might prescribe, the terms used with respect to insurance coverage.

RULES AND REGULATIONS OF THE CORPORATION

AND STATEMENTS OF GENERAL POLICY

Employee standards of conduct. On May 8, 1965, the President 

issued Executive Order 11222 directing each agency to prescribe 

standards of ethical conduct for Government officers and employees. Pursuant to the provisions of this executive order, the 

Corporation adopted a new Part 336 of its rules and regulations, 

Employee Responsibilities and Conduct, in April, 1966.

Payment of deposits and interest. In 1966, the Corporation, in 

four separate actions, amended Part 329 of its rules and regulations, relating to the payment of deposits and interest thereon by 

insured nonmember banks.

Effective July 20, 1966, the Board of Directors under existing 

legislative authority defined "multiple maturity time deposits” , and 

provided for a maximum rate of 5 percent on such deposits payable in 90 days or more, and 4 percent on such deposits payable 

in less than 90 days. In taking this action, the Corporation sought 

to limit excessive interest rate competition among financial institutions, and to support the Federal Reserve in its primary monetary 

policy responsibilities.

To implement the interest rate legislation approved by the President on September 21, 1966 (Public Law 89-597), Part 329 was 

amended effective September 26, 1966, to reduce from 51/2 percent per annum to 5 percent per annum the maximum rate of

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
RULES AND REGULATIONS OF THE CORPORATION 27

interest that may be paid by insured nonmember banks on single 

maturity time deposits of less than $100,000 received on or after 

September 26, 1966. At the same time, banks were authorized to 

compound interest up to the applicable maximum rate on any basis 

that the bank desired to adopt. This action under the Corporation’s 

new authority to differentiate deposits by size as well as other 

reasonable criteria was intended to check further escalation in 

interest rates on time money.

As part of the same amendment, provisions were added to Part 

329 to regulate, for the first time, the payment of interest and dividends by insured nonmember mutual savings banks, and a maximum rate of 5 percent was prescribed for any time on or after 

October 1, 1966. This coincided with the issuance of regulations 

by the Federal Home Loan Bank Board, under the new interest 

legislation, to prescribe maximum rates for insured savings and 

loan associations and similar organizations.

Effective October 1, 1966, Part 329 was amended to permit insured nonmember mutual savings banks in Alaska to pay higher 

rates of interest or dividends than the rate prescribed generally 

for mutual savings banks.

On December 8, 1966, the Board of Directors adopted amendments to Parts 327 and 329, effective January 1, 1967, designed 

to sharpen the technical distinctions between time deposits and 

savings deposits. Specifically, the amendments to the rules and 

regulations amend the definitions of the terms “ time deposit, open 

account” and “ savings deposit” to make it clear that deposits 

payable on a specified date or at the expiration of a specified 

period of time after the date of deposit (sometime referred to as 

“ fixed maturity” deposits) do not constitute savings deposits. The 

amendments to Part 327 of the rules and regulations relating to 

assessments are conforming amendments only and are not intended to affect the manner of computing assessments payable 

by insured banks to the Corporation.

Advertising for funds. On December 14, 1966, the Board of Directors approved a statement of policy with respect to advertising 

for funds by insured State nonmember banks. Similar statements 

were issued by the Board of Governors of the Federal Reserve 

System, the Comptroller of the Currency, and the Federal Home 

Loan Bank Board relating to institutions subject to their supervision.

The foregoing statutes, the complete text of Part 336, each of 

the amendments to Parts 327 and 329, and the statement of policy 

with respect to advertising, along with a summary of significant 

State banking legislation, are presented in Part Two of this report.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
28 FEDERAL DEPOSIT INSURANCE CORPORATION

ADMINISTRATION OF THE CORPORATION

Structure and employees. The Corporation is managed by a Board 

of Directors consisting of three members appointed by the President by and with the advice and consent of the Senate. Two of the 

Directors are appointed directly to the Board for six-year terms; 

one of these appointive members serves as Chairman. The Comptroller of the Currency, also a Presidential appointee, is ex officio

the third member of the Board.

Mr. K. A. Randall, appointed to the Board on March 10, 1964, 

served as Chairman throughout 1966. Mr. William W. Sherrill was 

appointed as Director to a full term beginning March 4, 1966, filling 

a vacancy which had existed since April 29, 1965. Mr. James J. 

Saxon continued as Comptroller of the Currency until November 

15, 1966. Mr. William B. Camp, First Deputy Comptroller and designated by the President as Mr. Saxon’s successor, served on the 

Board as Acting Comptroller until his appointment as Comptroller 

was confirmed by the Senate on February 1, 1967.

The organization of the Corporation and officials, supervising 

examiners and district offices, are shown on pages iv, v, and vi.

During 1966 the research function was strengthened to provide 

additional support for bank supervisory activities and to expand 

services to banks. Heavier work loads required additional personnel in both the Examination and Legal Divisions. Employee education and training programs were stepped up.

The net increase of personnel totaled 83 in 1966, consisting of 

63 in the Washington office and 20 in the District offices. All divisions of the Corporation contributed to the increase through the 

addition of one or more personnel. The number of employees at the 

end of 1965 and 1966, distributed by Division and location, is shown 

in Table 8.

Table 8. NUMBER OF OFFICERS AND EMPLOYEES OF THE FEDERAL 

DEPOSIT INSURANCE CORPORATION, DECEMBER 31, 1965 AND 1966

Unit

Total

Washington

office

District and other 

field offices

1966 1965 1966 1965 1966 1965

T o ta l 1.5291 1,446* 426 363 1,103 1,083

D irectors................................... 3 2 3 2 0 0

Executive O ffices...................................... 44 43 44 43 0 0

Legal D ivision .................................................. 41 36 41 36 0 0

Division of E xam ination................................................. 1,111 1,078 66 62 1,045 1,016

Division of L iqu id a tion ................................................... 112 101 64 45 48 56

Division of Research and Data Processing............... 89 72 89 72 0 0

Office of C ontroller.......................................................... 129 114 119 103 10 11

1 Includes 68 non-permanent employees in 1966, and 69 in 1965. These are employees serving either on short-term 

appointments or on a non-pay or when actually employed basis.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
ADMINISTRATION OF THE CORPORATION 29

Examination activity continued to require the largest number of 

personnel, about three-fourths of all employees. During the year, 

167 field examiners entered Corporation employment, while 145 

left; the turnover rate for this group was 16.7 per 100.

For all employees, exclusive of temporary field liquidation personnel and 80 students employed temporarily under the summer 

employment program, the turnover rate was 20.8 per 100.

Employee benefits and programs. There were no significant 

changes during 1966 in benefits and programs available to employees, or in employee participation in existing programs.

FINANCES OF THE CORPORATION

Assets and liabilities. Assets and liabilities of the Corporation on 

December 31, 1966 are shown in Table 9.

Assets totaled $3,443 million at the end of 1966. These were 

predominantly in the form of United States Government obligations 

valued at $3,414 million, including accrued interest. Assets acquired in insurance transactions, after allowances for losses, were 

valued at $17 million. The Corporation carried its site and office 

building at nearly $8 million and held cash of $4 million.

Liabilities totaled $191 million on December 31, 1966. Of this 

amount, net assessment income credits due insured banks equaled 

$188 million.

The excess of the Corporation’s assets over its liabilities constitutes the deposit insurance fund. This fund, which represents 

accumulated income since the inception of deposit insurance, 

amounted to $3,252 million on December 31, 1966. This basic 

resource for the protection of depositors is reinforced by the Corporation’s authority to borrow up to $3 billion from the United 

States Treasury whenever in the judgment of the Corporation’s 

Board of Directors such funds are needed for insurance programs. 

This borrowing power has not yet been used.

Income and expenses in 1966. Net income added to the deposit 

insurance fund during 1966 aggregated $216 million. Assessments 

earned amounted to $284 million but, after allowance of assessment 

credits to insured banks of $172 million, contributed only $112 

million to retained income. Interest on the United States Government securities in which the insurance fund is invested, as required 

by statute, totaled $129 million. Operating expenses approached 

$20 million, and insurance losses and expenses absorbed or provided for exceeded $5 million. The Corporation's income and expenses for 1966 are shown in Table 10.

Assessments on banks are levied at the statutory annual rate of 

one-twelfth of 1 percent of assessable deposits. The 1950 Act,

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
30 FEDERAL DEPOSIT INSURANCE CORPORATION

Table 9. STATEMENT OF FINANCIAL CONDITION, FEDERAL DEPOSIT 

INSURANCE CORPORATION, DECEMBER 31, 1966

ASSETS

Cash........................................................................................................

U. S. Government obligations:

Securities at amortized cost (face value $3,393,312,000; cost $3,371,195,373) 

Accrued interest receivable...............................................................................................

Assets acquired in receivership and deposit assumption

transactions: 1

Special assistance to insured banks............................................................................

Subrogated claims of depositors against closed insured banks..........................

Net insured balances of depositors in closed insured banks, to be subrogated

when paid—see related lia b ility ................................................................................

Loans to insured banks....................................................................................................

Equity in assets acquired under purchase agreements.........................................

Assets purchased o u trig h t...............................................................................................

Less reserves for losses...........

Miscellaneous assets.........................................................................

Land and office building, less depreciation on building. . . .

Furniture, fixtures, and equipment (cost $1 ,383 ,733 )...........

Total assets........................................................................

L IA B ILIT IE S AND DEPOSIT INSURANCE FUND2

Accounts payable and accrued liabilities..................................

Earnest money, escrow funds, and collections held for

others ............................................................................................

Accrued annual leave of employees...............

Due insured banks:

Net assessment income credits available July 1,1967 (See Table 11).................

Other assessment credits available im m ed ia tely.....................................................

Net insured balances of depositors in closed insured banks

—see related asset.....................................................................

Total liabilities................................................................

Deposit insurance fund, net income accumulated since

inception 3(See Table 1 0 ).........................................................

Total liabilities and deposit insurance fund............

$ 4,440,935

$3,378,942,571

35,045,566 3,413,988,137

$ 10,000,000 

20,371,914

492,655

2,444,020

3,092,617

14,978

$ 36,416,184

19,748,359 16,667,825

282,300

7,905,311

1

$3,443,284,509

S 1,211,790

169,208

1,320,051

$ 172,606,507

15,521,841 188,128,348

492,655 

$ 191,322,052

3,251,962,457

$3,443,284,509

1 Reported hereunder is the book value of assets in process of liquidation. An analysis of all assets acquired in 

receivership and deposit assumption transactions, including those assets which have been liquidated, is furnished in 

Table 4.

2 Capital stock was retired by payments to the United States Treasury in 1947 and 1948.

3 The deposit insurance fund represents the accumulated net income of the Corporation and is available for insuring 

deposits and paymerrt of expenses. The borrowing authority of $3 billion from the United States Treasury has never 

been used.

NOTE: This statement does not include accountability for the assets and liab ilitie s of the closed insured banks for 

which the Corporation acts as receiver or liquidating agent.

however, introduced a provision whereby a portion of the assessments is returned to the banks, in the form of individual credits 

against future assessments, after deducting the Corporation’s 

losses and expenses. This returned portion, initially set at 60 percent, was raised to 66% percent in 1961. Since that time— and in 

1966 as well— the effective assessment rate has been about onethirty-first of 1 percent of deposits. The method of determining and

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FINANCES OF THE CORPORATION 31

distributing net assessment income in 1966 is shown in Table 11.

In addition to its assessment and investment income, the turnover of its investments in U. S. Government securities and in assets 

acquired in insurance operations provides funds which the Corporation has at its disposal. Most of the activity is in the sale, redemption or purchase of U. S. Government securities. The sources and 

application of all funds administered by the Corporation during 

1966 are shown in Table 12.

Income and the deposit insurance fund, 1934-1966. The components of income and its distribution since the beginning of the

Table 10. STATEMENT OF INCOME AND THE DEPOSIT INSURANCE

FUND, FEDERAL DEPOSIT INSURANCE CORPORATION,

YEAR ENDED DECEMBER 31, 1966

In c o m e :

Deposit insurance assessments:

Assessments earned in 1966..................................................... $284,286,637

172,603,634 $ 111,683,003

17,614

Less net assessment income credits to insured banks.....................................

Adjustments of assessments earned in prior years...........................................

$ 12,961,963

822,928

3,360,101

2,646,911

Net income from U. S. Government securities....................................................

$ 111,700,617

129,302,688

Other income.............................................................................................................. 1,588

T o ta l in c o m e ........................................................................................ $ 241,004,893

E x p e n s e s a n d lo s s e s :

Administrative and operating expenses:

Salaries and wages................................................................

$ 19,791,903

5,147,859

428,424

Civil Service retirement fund and F.I.C.A. payments.........................

Travel expenses.........................................................................................................

Office rentals, communications and other expenses...........................

Provisions for insurance losses:

Applicable to banks assisted in 1966............................................ $ 4,785,000

Adjustm ents applicable to banks assisted in prior ye a rs..................... 362,859

Non-recoverable insurance expenses incurred to protect depositors— net__

T o ta l e x p e n s e s a n d lo s s e s ....................................

N e t a d d itio n to th e d e p o s it in s u ra n c e fu n d — 1966...............

$ 25,368,186

$ 215,636,707

ly 1966............... 3,036,325,750D e p o s it in s u ra n c e fu n d , J a n u a r y 

D e p o s it in s u ra n c e fu n d , D e c e m b e r 31, 1966, n e t in c o m e

a c c u m u la te d s in c e in c e p tio n (s e e T a b le 9 a n d n o te 3 o f

T a b le 9)....................................... $3,251,962,457

Corporation’s operations in 1933 are shown in Table 13. The relatively low losses and expenses have enabled the Corporation to 

retain 89 percent of the income it has received, enabling it to build 

up the deposit insurance fund.

Growth in the deposit insurance fund has just about kept pace 

with the growth in deposits, giving that relationship a notable stability. On December 31, 1966, the fund amounted to 0.81 percent 

of total deposits and 1.39 percent of insured deposits, as shown

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
32 FEDERAL DEPOSIT INSURANCE CORPORATION

Table 11. DETERMINATION AND DISTRIBUTION OF NET ASSESSMENT

INCOME, FEDERAL DEPOSIT INSURANCE CORPORATION,

YEAR ENDED DECEMBER 31, 1966

D e te rm in a tio n o f n e t a s s e s s m e n t in c o m e :

Total assessments which became due during the calendar year........................ $284,286,637

Less:

Administrative and operating expenses............................................................... $ 19,791,903

Net additions to reserve to provide for insurance losses:

Provisions applicable to banks assisted in 1966........................................ $ 4,785,000

Adjustments to provisions for banks assisted in prior years.................. 375,859 5,160,859

Insurance expenses.................................................................................................. 428,424

Total deductions....................................................................................... $ 25,381,186

N e t a s s e s s m e n t in c o m e fo r 1 9 6 6 .......................................................... $258,905,451

D is trib u tio n o f n e t a s s e s s m e n t in c o m e , D e c e m b e r 3 1 , 1 9 6 6 : .

Net assessment income for 1966:

33V3% transferred to the deposit insurance fund............................................. $ 86,301,817

66% % credited to insured banks.......................................................................... 172,603,634

T o t a l........................................................................................................... $258,905,451

A llo c a tio n o f n e t a s s e s s m e n t in c o m e c r e d it a m o n g in s u re d

b a n k s , D e c e m b e r 3 1 , 1 9 6 6 :

Percentage of total

assessment

becoming due in

1966

Credit for 1966..............................................................................................................

Adjustments of credits for prior years....................................................................

$172,603,634

2,872

60.715%

.001

T o t a l..................................................................................................... $172,606,506 60.716%

in Table 14. The existence of the fund as a concrete, available 

resource, backed up by adequate supervision, has helped to 

moderate the demands upon it and to maintain public confidence 

in the safety of deposits.

Audit. A continuous internal audit is made of the Corporation’s 

operations. In addition, an independent audit of the Corporation’s 

books has been made each year since its establishment, first by

Table 12. SOURCES AND APPLICATION OF FUNDS, FEDERAL DEPOSIT

INSURANCE CORPORATION, YEAR ENDED DECEMBER 31, 1966

F u n d s p ro v id e d b y :

Net deposit insurance assessments.....................................................................................

Income from U. S. Government securities, less amortized net discounts...................

Maturities and sales of U. S. Government securities.......................................................

Collections on assets acquired in receivership and deposit assumption transactions

T o ta l fu n d s p r o v id e d .................................................................................

F u n d s a p p lie d to :

Administrative, operating and insurance expenses, less miscellaneous credits........

Acquisition of assets in receivership and deposit assumption transactions...............

Purchase of U. S. Government securities...........................................................................

Net changes in other assets and liabilities........................................................................

T o ta l fu n d s a p p lie d ...................................................................................

$127,778,782

127,453,130

380,458,000

6,369,818

$642,059,730

$ 20,083,535

18,891,397

599,818,962

3,265,836

$642,059,730

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FINANCES OF THE CORPORATION 33

Table 13. INCOME AND EXPENSES, FEDERAL DEPOSIT INSURANCE 

CORPORATION, BY YEAR, FROM BEGINNING OF OPERATIONS, 

SEPTEMBER 11, 1933, TO DECEMBER 31, 1966 

ADJUSTED TO DECEMBER 31, 1966

(In millions)

Income

Year

Total

Deposit

insurance

assessments1

Investments

and

other

sources2

Expenses and losses

Total

Deposit

insurance

losses and

expenses

Interest

on capital

stock3

Administrative

and

operating

expenses

Net

income

added to

deposit

insurance

fund4

1933-66.

19 66....

19 65....

1 9 64....

19 6 3....

1 9 62....

19 61 ....

19 60 ....

1959....

1 9 58....

1 9 57....

1 9 56....

19 55....

19 54....

19 53 ....

19 52....

19 51 ....

19 50 ....

19 49 ....

1948....

19 47 ....

19 46....

19 45 ....

1944....

19 43 ....

19 42 ....

19 41....

19 4 0....

19 39 ....

19 3 8....

19 3 7....

1936....

19 35 ....

1933-34.

$3,634.1

241.0

214.6

197.1

181.9

161.1

147.3

144.6

136.5

126.8

117.3

111.9

105.7

99.7

94.2

88.6

83.5

84.8

151.1

145.6

157.5

130.7

121.0

99.3

86.6

69.1

62.0

55.9

51.2

47.7

48.2

43.8

20.8

7.0

$2,291.8

111.7

102.2

93.0

84.2

76.5

73.4

79.6

78.6

73.8

69.1

68.2

66.1

62.4

60.2

57.3

54.3

54.2

122.7

119.3

114.4

107.0

93.7

80.9

70.0

56.5

51.4

46.2

40.7

38.3

38.8

35.6

11.5

(5)

$1,342.3

129.3

112.4

104.1

97.7

84.6

73.9

65.0

57.9

53.0

48.2

43.7

39.6

37.3

34.0

31.3

29.2

30.6

28.4

26.3

43.1

23.7

27.3

18.4

16.6

12.6

10.6

9.7

10.5

9.4

9.4

8.2

9.3

7.0

$382.1

25.0

24.4

18.9

16.4

13.8

14.8

12.5

12.1

11.6

9.7

9.6

9.0

7.8

7.3

7.8

6.6

7.8

6.4

7.0

9.9

10.0

9.4

9.3

9.8

10.1

10.1

12.9

16.4

11.3

12.2

10.9

11.3

10.0

$47.8

5.2

6.7

3.4

2.0

.1

1.6

.1

.2

1.4

.3

.7

.1

.1

.1

.1

.2

.5

.6

3.5

7.2

2.5

3.7

2.6

2.8

.2

$80.6

.6

4.8

5.8

5.8

5.8

5.8

5.8

5.8

5.8

5.8

5.8

5.8

5.8

5.8

5.6

$253.7 $3,252.0

19.8 216.0

17.7 190.2

15.5 178.2

14.4 165.5

13.7 147.3

13.2 132.5

12.4 132.1

11.9 124.4

11.6 115.2

9.6 107.6

9.1 102.3

8.7 96.7

7.7 91.9

7.2 86.9

7.0 80.8

6.6 76.9

6.4 77.0

6.1 144.7

5.7 138.6

5.0 147.6

4.1 120.7

3.5 111.6

3.4 90.0

3.8 76.8

3.8 59.0

3.7 51.9

3.6 43.0

3.4 34.8

3.0 36.4

2.7 36.0

2.5 32.9

2.7 9.5

4.26 - 3 . 0

1 For the period from 1950 to 1966, inclusive, figures are net after deducting the portion of net assessment income

credited to insured banks pursuant to provisions of the Federal Deposit Insurance Act of 1950, as amended. Assessment

credits to insured banks for these years amounted to $1,787 million.

2 Includes $9.3 million of interest and allowable return received on funds advanced by the Corporation in 162 receivership and deposit assumption cases.

3 Paid in 1950 and 1951, but allocated among years to which it applies. Initial capital of $289 million was retired by

payments to the United States Treasury in 1947 and 1948.

4 The amounts shown herein give effect to adjustments to the deposit insurance fund in the years to which they are

applicable, whereas the amounts of the Fund shown in Table 14 represent the Fund as reported on the dates specified.

Hence the deposit insurance fund reported in Table 14 cannot be computed by annual addition of income reported herein,

except for the Fund as of December 31, 1966.

5 Assessments collected from members of the temporary insurance funds which became insured under the permanent

plan were credited to their accounts at the termination of the temporary funds and were applied toward payment of subsequent assessments becoming due under the permanent insurance fund, resulting in no income to the Corporation from

assessments during the existence of the temporary insurance funds.

6 Net after deducting the portion of expenses and losses charged to banks withdrawing from the temporary insurance

funds on June 30,1934.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
34 FEDERAL DEPOSIT INSURANCE CORPORATION

Table 14. INSURED DEPOSITS AND THE DEPOSIT INSURANCE FUND,

1934-1966

Year

(Dec. 31)

Deposits in

insured banks

(in millions)

Percent

of

deposits

insured

Deposit

insurance

fund

(in

millions)

Ratio of deposit

insurance fund to—

Total

deposits

Insured

Total Insured1 deposits

1966.......... $401,096 $234,150 58.4% $3,252.0 .81% 1.39%

1965.......... 377,400 209,690 55.6 3,036.3 .80 1.45

1964.......... 348,981 191,787 55.0 2,844.7 .82 1.48

1963.......... 313,3042 177,381 56.6 2,667.9 .85 1.50

1962.......... 297,5483 170,2104 57.24 2,502.0 .84 1.474

1961.......... 281,304 160,3094 57.04 2,353.8 .84 1.474

1960.......... 260,495 149,684 57.5 2,222.2 .85 1.48

1959.......... 247,589 142,131 57.4 2,089.8 .84 1.47

1958 242,445 137,698 56.8 1,965.4 .81 1.43

1957 225,507 127,055 56.3 1,850.5 .82 1.46

1956 219,393 121,008 55.2 1,742.1 .79 1.44

1955 212,226 116,380 54.8 1,639.6 .77 1.41

1954 203,195 110,973 54.6 1,542.7 .76 1.39

1953 193,466 105,610 54.6 1,450.7 .75 1.37

1952 188,142 101,842 54.1 1,363.5 .72 1.34

1951 178,540 96,713 54.2 1,282.2 .72 1.33

1950 167,818 91,359 54.4 1,243.9 .74 1.36

1949 156,786 76,589 48.8 1,203.9 .77 1.57

1948 153,454 75,320 49.1 1,065.9 .69 1.42

1947 154,096 76,254 49.5 1,006.1 .65 1.32

1946 148,458 73,759 49.7 1,058.5 .71 1.44

1945 158,174 67,021 42.4 929.2 .59 1.39

1944 134,662 56,398 41.9 804.3 .60 1.43

1943 111,650 48,440 43.4 703.1 .63 1.45

1942 89,869 32,837 36.5 616.9 .69 1.88

1941 71,209 28,249 39.7 553.5 .78 1.96

1940 65,288 26,638 40.8 496.0 .76 1.86

1939 57,485 24,650 42.9 452.7 .79 1.84

1938 50,791 23,121 45.5 420.5 .83 1.82

1937 48,228 22,557 46.8 383.1 .79 1.70

1936 50,281 22,330 44.4 343.4 .68 1.54

1935 45,125 20,158 44.7 306.0 .68 1.52

1 9 3 4 ...... 40,060 18,075 45.1 333.0 .83 1.84

1 Figures estimated by applying to the deposits in the various types of account at the regular call dates the percentages

insured as determined from special reports secured from insured banks.

2 December 20,1963.

3 December 28,1962.

4 Revised.

private firms and later by the General Accounting Office. The 

Federal Deposit Insurance Act of 1950 provides that the financial 

transactions of the Corporation shall be audited by the General 

Accounting Office.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 35

Table 15. DESCRIPTION OF EACH MERGER, CONSOLIDATION, 

ACQUISITION OF ASSETS OR ASSUMPTION OF LIABILITIES 

APPROVED BY THE CORPORATION DURING 1966

Resources

(in

thousands

of dollars)

Banking offices

Case No. 1 1 n

operation

To be

operated

State Bank & Trust Company,

Greenwood, South Carolina

78,722 24 26

to merge with

Newberry County Bank,

Newberry

3,920 2

S u m m a r y r e p o r t b y A t to r n e y G e n e ra l, N o v e m b e r 2 6 , 1 9 6 5

Applicant bank, with $70 million in deposits and 23 branch offices, is the fourth 

largest bank in South Carolina. The proposed acquisition would be the eighth for 

applicant since 1955. By seven previous mergers, applicant absorbed 10 offices 

and $25 million in deposits, about 35 percent of its current total deposits. The 

proposed acquisition, although it will add only 0.2 percent of the total deposits 

of all South Carolina banks to applicant’s resources, continues the trend toward 

higher concentration among South Carolina banks. In this State, where statewide 

branching is permitted, the three largest banks currently account for 48.8 percent 

of all bank deposits, whereas in 1951, the three largest banks controlled only 39.2 

percent. Furthermore, the number of banks in South Carolina has steadily declined from 149 in 1951 to 132 in 1965. Because of the relatively small size of the 

bank to be acquired, however, the proposed merger will not by itself have a significantly adverse effect on competition.

B a s is f o r C o r p o ra tio n a p p r o v a l, J a n u a r y 6 , 1 9 6 6

This proposal would merge a relatively small bank headquartered in Newberry, 

South Carolina, with a much larger bank (the fourth largest in the State), headquartered in Greenwood, 37 miles west-southwest of Newberry. The Joanna 

branch of Newberry Bank is 15 miles northwest of Newberry and the nearest 

offices of State Bank to Newberry Bank are at Whitmire, 17 miles northeast of 

Joanna and 16 miles north of Newberry, and at Saluda, 23 miles south-southwest 

of Newberry. State Bank operates 24 offices in 16 cities or towns situated generally west and southwest of Columbia, but Newberry and Joanna are not considered a part of its normal trade area. Neither bank derives any appreciable 

amount of business from the service area of the other; consequently, there is no 

significant competition between them which will be eliminated.

Principal banking competition for State Bank is provided by offices of the 

State’s three largest banks which, among 29 banks with offices in the relevant 

service area(s), collectively hold approximately three-fourths of the aggregate 

deposits and loans. State Bank is only about one-half the size of the third largest 

bank and about one-fourth the size of the largest, holding 8.8 percent of the 

aggregate deposits and 9.1 percent of the loans. These proportions will be increased by 0.4 percent and 0.3 percent, respectively, as a result of the merger, 

and State Bank’s rank as fourth largest bank in the service area(s), as well as in 

the State, will not be altered. To a small degree, the enlarged lending limit that 

would result for State Bank would enable it to compete more effectively with its 

larger competitors; otherwise, the merger would have no significant effect on 

banking competition in the areas presently served t>y State Bank.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
36 FEDERAL DEPOSIT INSURANCE CORPORATION

In Newberry, Newberry Bank faces direct competition from the Newberry 

branch of The South Carolina National Bank of Charleston, which is by far the 

State’s largest bank. The substitution of branches of State Bank in Newberry and 

Joanna in place of the two offices of the much smaller Newberry Bank should 

prove beneficial to the public in that area because of State Bank’s greater resources and more aggressive management policies, and competition in that area, 

especially Newberry, should be materially enhanced. The small bank which is 

strictly local in its outlook and service to the public would be replaced by 

branches of a bank of substantial size which is in a position to expand the range 

of banking services to the public.

It is concluded that the merger would be in the public interest.

Resources

(in

thousands

of dollars)

Banking offices

Case No. 2 In

operation

To be

operated

Pioneer Bank of Arizona,

Phoenix, Arizona

29,235 4 5

to merge with

Bank of Scottsdale,

Scottsdale

10,770 1

S u m m a r y r e p o r t b y A t to r n e y G e n e ra l, J a n u a r y 12, 1 9 6 6

Pioneer Bank of Arizona has assets of $31,613,000 and deposits of $27,921,000. 

Its main office and two branches are located in Phoenix, and it has an office in Prescott, 60 miles north. It is the fifth largest of the eight banks in its Phoenix service 

area (consisting of Phoenix, Scottsdale, Glendale, and Tempe) with 2 percent of 

total deposits, and it is the smallest of the three banks in its Prescott service area 

with 17.2 percent of total deposits.

Bank of Scottsdale has assets of $11,338,000, and deposits of $9,566,000. Its 

single office is located in Scottsdale, a suburb of Phoenix. It is the smallest of the 

eight banks in the Phoenix service area with 0.9 percent of total deposits of such 

banks.

There are 16 banks in Arizona, with the four largest accounting for 90.6 percent of total IPC deposits in the State. Pioneer Bank has 1.4 percent of such 

deposits and Bank of Scottsdale has 0.9 percent.

There is some direct competition between the participating banks in the 

Phoenix service area.

Because of the relatively small market share held by the merging banks, particularly in the Phoenix service area, and the presence of much larger banks in 

both Phoenix and Prescott (where the two largest banks in the State have offices), 

it does not appear that the proposed merger, if consummated, would have a significantly adverse effect on competition.

B a s is f o r C o r p o r a tio n a p p ro v a l, J a n u a r y 2 0 , 1 9 6 6

Among 17 banks in Arizona operating 263 offices, the largest bank, based on 

October 13, 1965 statistics, holds 45.6 percent and 47.1 percent of the aggregate 

IPC deposits and loans, respectively, and operates 92 of the offices. The four 

largest banks, combined, hold 91.6 percent and 91.2 percent of the IPC deposits 

and loans, respectively, and operate 234 of the banking offices. Pioneer, operating four offices, ranks sixth on a statewide basis, holding 1.1 percent of the IPC 

deposits and 1.3 percent of the loans. Bank of Scottsdale, a unit bank, holds less 

than one-half of 1 percent in each category and ranks twelfth. The resulting bank 

would continue to rank sixth in the State.

In the Phoenix clearing house area, which includes Scottsdale and is the relevant service area under consideration in this proposal, there are eight banks 

operating 90 offices, including 79 offices of the State’s four largest banks. Pioneer, 

operating three offices in the area (none in Scottsdale), ranks sixth in volume of

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 37

IPC deposits and loans; Bank of Scottsdale, a unit bank, ranks last. The resulting 

bank would attain fifth position among seven banks remaining in the area, but 

would be operating only four of the 90 banking offices and would hold 2.4 percent 

and 2.1 percent, respectively, of the local IPC deposits and loans. It would have 

approximately one-half the volume held by the local offices of the fourth largest 

bank in the Phoenix area and would be substantially overshadowed by local 

offices of the three largest banks. Bank of Scottsdale competes directly in that 

city with nine branches of the State’s three largest banks.

Competition between the merging banks which would be eliminated is not significant and their merger will tend to increase competition to some degree with 

the larger banks because of enlarged resources and a greater capital base. The 

broader range of banking services which the resulting bank could provide would 

be beneficial to its customers.

It is concluded that the merger is in the public interest.

Resources

(in

thousands

of dollars)

Banking offices

Case No. 3 In

operation

To be

operated

Peoples Bank & Trust Company,

Rocky Mount, North Carolina

67,425 20 21

to merge with

The Peoples Bank,

Norlina

1,552 1

S u m m a r y r e p o r t b y A t to r n e y G e n e ra l, D e c e m b e r 6 , 1 9 6 5

Peoples Bank & Trust Company was organized on April 1, 1931. It has 20 offices 

located throughout the northeastern portion of North Carolina and, as of September 30, 1965, had total assets of $67,426,000, total deposits of $61,143,000, net 

loans and discounts of $37,556,000, and total capital accounts of $4,583,000.

Peoples Bank of Norlina (population 1,300) was organized July 30, 1947. As of 

September 30, 1965, it had total assets of $1,554,000, total deposits of $1,269,000, 

net loans and discounts of $746,000, and total capital accounts of $256,000. Its 

only office is located in Norlina, North Carolina, 41 miles northwest of Rocky 

Mount and 15 miles northeast of the closest branch of Peoples Bank & Trust.

Although the proposed merger would eliminate one of the few remaining independent banks in the area, the resulting bank would be in a position to offer the 

Norlina area a number of services which Peoples Bank cannot offer in view of its 

limited size and its $33,000 lending limit.

On balance, the competitive effect of the proposed merger would not appear to 

be adverse.

B a s is f o r C o r p o ra tio n a p p ro v a l, J a n u a r y 2 7 , 1 9 6 6

Applicant is headquartered in Rocky Mount, North Carolina and serves 10 

other communities throughout the northeastern portion of the State. The merging 

bank, Peoples, is a small unit bank located in Norlina, 41 miles from Rocky Mount 

and 15 miles from the nearest office of the applicant. Peoples serves a limited 

area in the vicinity of Norlina and neither participating bank derives loans or 

deposits from the other’s service area. There is no significant competition between the merging banks which would be eliminated by the proposal.

Applicant has resources of $67.4 million and is the largest bank in the 11 

communities it serves. The addition of $1.6 million in Peoples’ resources would 

have no material effect on the competitive situation in applicant’s service areas. 

Competition has not been aggressive between Peoples and its only direct competitor located 4 miles southeast at Warrenton, a bank more than three times the 

deposit size of Peoples. The introduction of the larger, aggressive applicant bank 

would increase competition in Peoples’ service area.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
38 FEDERAL DEPOSIT INSURANCE CORPORATION

The resulting bank would offer complete banking services in the Norlina area, 

including full fiduciary services which are not presently offered by the two banks 

in this area, a farm management program, forestry management service, and a 

lending limit adequate to meet the financial needs of the Norlina community.

The effect of the proposal on competition would not be unfavorable and the 

proposed merger, through which the applicant would extend additional and improved banking services to the Norlina area and provide a depth in active management and adequate measures for management succession which are lacking 

at Peoples, is concluded to be in the public interest.

Resources

(in

thousands

of dollars)

Banking offices

Case No. 4 In

operation

To be

operated

Dauphin Deposit Trust Company,

Harrisburg, Pennsylvania 

to merge with

169,996 16 18

Peoples National Bank of Hanover,

Hanover

16,108 2

S u m m a r y r e p o r t b y A t to r n e y G e n e ra l, D e c e m b e r 2 9 , 1 9 6 6

The Dauphin Deposit Trust Company has total assets of $164,308,000 and conducts commercial banking through 15 offices, 11 of which were acquired by 

merger (four as a result of a merger in April, 1964). These offices are located 

throughout the city of Harrisburg and surrounding suburbs both east and west 

of the Susquehanna River.

The Peoples National Bank of Hanover has total assets of $15,923,000 and 

operates its main office and one branch in Hanover, Pennsylvania, which is 

located about 40 miles southwest of Harrisburg and about 20 miles southwest of 

York, Pennsylvania.

The two banks are not now in competition with each other, for each does business primarily in a different geographical area. There is no indication that the 

removal of one of the banks as a potential entrant into the market of the other 

would adversely affect competition. Thus, it appears, upon the basis of the facts 

submitted, that the merger will not have any significant anticompetitive consequences.

B a s is f o r C o r p o ra tio n a p p r o v a l, F e b r u a r y 10, 1 9 6 6

The merging banks are headquartered 39 miles apart in the southeast sector of 

Pennsylvania. None of the applicant’s 16 offices, which are located in Dauphin 

and Cumberland Counties, are closer than 29 miles from Peoples’ two offices 

which are situated in York County. The participating banks compete in different 

geographical areas and there is not a significant amount of competition between 

them which would be eliminated by the proposal.

The applicant would continue as the second largest bank in Harrisburg and in 

the combined service area. The largest bank, a major competitor of the applicant, 

has 18 offices and holds 24.6 percent of the aggregate IPC deposits owned by the 

24 banks located in this area. This competitor is headquartered in York and has 

eight branches in applicant’s service area. The resulting bank would hold 23.2 

percent of the aggregate IPC deposits; the third largest holds 15.9 percent. Competition in applicant’s service area would not be materially affected by the merger.

The York bank also provides direct competition to Peoples through its two 

branches in Hanover. Competitive banking and fiduciary services offered by 

Peoples would be expanded by applicant’s entry into Hanover. The enlarged 

lending limit available to Peoples’ present and potential customers would be more 

comparable to that of the York bank. Competition would be enhanced in Peoples’ 

service area and following consummation of the merger there would remain in 

Hanover two local, well-established independent banks in addition to the offices 

of the resulting bank and the larger York bank.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 39

The merger would not have an unfavorable effect on competition. In addition 

to the expanded services to be offered in the Hanover area, a greater depth in 

management will provide for management succession, which is a problem facing 

Peoples bank. It is concluded that the proposed merger is in the public interest.

Resources

(in

thousands

of dollars)

Banking offices

Case No. 5 In

operation

To be

operated

First San Francisco Bank,

San Francisco, California

21,832 1 2

to merge with

The Mount Diablo First National Bank,

Pleasant Hill

2,552 1

S u m m a r y r e p o r t b y A t to r n e y G e n e ra l, J a n u a r y 2 5 , 1 9 6 6

The two merging banks are newly organized small unit banks, each accounting 

for less than 1 percent of all commercial bank deposits in its respective service 

area. The two banks do not presently compete significantly with each other; one 

is located in downtown San Francisco and the other some 18 miles east, on the 

other side of San Francisco Bay, in suburban Walnut Creek. Both banks face 

strong competition from the few large banks which account for an overwhelming 

share of the commercial banking market in each area and from several other 

smaller and more localized banks. For these reasons, we conclude that the proposed merger will have no adverse effect on competition among commercial 

banks in these areas.

B a s is f o r C o r p o r a tio n a p p r o v a l, M a r c h 3 , 1 9 6 6

The participating banks are two small unit banks located 31 miles apart. A pplicant serves a limited area in downtown San Francisco and Diablo serves a small 

area surrounding its location in Pleasant Hill. Each merging bank operates in 

distinct geographical areas separated by the San Francisco Bay, the large city of 

Oakland and other smaller communities. There is no competition between the 

participating banks which would be eliminated by the proposal.

Each of the merging banks competes with the same six large banks, five of 

the latter each having total deposits exceeding $1 billion. The combined deposits 

of the participating banks would be less than $20 million. The acquisition of 

Diablo’s resources by the applicant would have no effect on competition in the 

applicant’s service area. The competitive structure in Diablo’s service area would 

be virtually unchanged by replacing a small independent unit bank with a small 

independent bank operating one branch. In addition to the six large banks operating in Diablo’s service area, and the resulting bank, there would remain two 

local independent banks to serve the area.

Diablo is operating with a seriously impaired common capital account, and 

attempts to sell additional common stock have been unsuccessful. The proposal 

would resolve the serious management and capital problems of Diablo and serve 

to prevent its closure. The proposed merger is concluded to be in the public 

interest.

Resources

(in

thousands

of dollars)

Banking offices

Case No. 6 In

operation

To be

operated

The First National Bank of Taft,

Taft, Texas

2,806 1 1

to acquire the assets and assume

the liabilities of

The Taft Bank, Unincorporated,

Taft

3,031 1

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
40 FEDERAL DEPOSIT INSURANCE CORPORATION

S u m m a r y r e p o r t b y A t to r n e y G e n e ra l, F e b r u a r y 17, 1 9 6 6

Taft, Texas has a population of 3,500. Presently, it has three banks, The First 

National Bank of Taft, The Taft Bank, Unincorporated, and the First State Bank of 

Taft.

First National Bank of Taft and Taft Bank, Unincorporated have been under 

common ownership and common management for approximately 40 years. The 

partners of The Taft Bank, Unincorporated own 84 percent of the capital stock 

of First National Bank of Taft, and both banks share the same president and vice 

president.

In view of the common ownership and common management of the two banks, 

the proposed acquisition of assets and assumption of liabilities of The Taft Bank 

by The First National Bank of Taft will not adversely affect competition.

B a s is f o r C o r p o ra tio n a p p r o v a l, M a r c h 16, 1 9 6 6

The proposed transaction would combine two small banks of similar size which 

operate from the same building in Taft, Texas, under common management and 

ownership. There is no competition between them which would be eliminated by 

the proposal.

Applicant’s $2.4 million IPC deposits would be slightly more than doubled 

under the proposed transaction and the resulting bank would hold 35.5 percent 

of the aggregate of such deposits owned by the four banks in the service area. 

The largest bank, 8 miles northwest, holds 50.2 percent of such deposits. The 

local competing bank in Taft holds 14.3 percent. The increase in concentration 

would have no practical effect on competition in Taft or in the service area since 

the participating banks have operated essentially as one competitive unit under 

common ownership and management for 40 years.

The elimination of Taft Bank as a banking alternative would cause no inconvenience since both participating banks occupy the same building. Applicant’s 

increased lending limit would be sufficient to meet the credit needs of the communities served and the resulting bank would be in a position to better aid in 

the development of the area.

The formal acquisition of the private bank by the applicant would have no 

unfavorable effects on competition and would not result in a monopoly or be in 

restraint of trade. The proposed transaction would bring the benefits of government agency supervision and the protection of Federal deposit insurance to 

that portion of the business formerly under Taft Bank and the larger resulting 

bank could more adequately meet the convenience and needs of the community 

to be served.

Resources

(in

thousands

of dollars)

Banking offices

Case No. 7 In

operation

To be

operated

Birnie Trust Company,

Taneytown, Maryland 

(change title to Taneytown 

Bank & Trust Company)

6,273 2 3

to merge with

First National Bank Taneytown, Maryland,

T onoi/+/Miin

4,466 1

S u m m a r y r e p o r t b y A t to r n e y G e n e ra l, F e b r u a r y 1, 1 9 6 6

The Birnie Trust Company of Taneytown, Maryland, with total assets of $5,879,000, 

proposes to merge First National Bank, also of Taneytown, which has total 

assets of $4,204,000, and to operate the merged bank as a branch office.

Applicant bank and merging bank are the only banking institutions in Taneytown. The participating banks are located in the business district of the town 

which serves an area both agricultural and industrial. Merging bank is reportedly

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 41

operating with a serious management problem. Neither of the participating banks 

has been involved in a merger or acquisition during the past 10 years.

The proposed merger will eliminate all competition between the merging banks, 

but the overall effect of the merger would not be to reduce competition in the 

interested communities substantially because of the considerable number of 

banks in the vicinity of Taneytown.

Basis for Corporation approval, March 16, 1966

The proposal would merge two small banks headquartered in Taneytown, Maryland. The applicant operates one branch which is located 7 miles southeast from 

its main office; the sole office of the other bank is situated one block from applicant’s main office. There are no other banks in Taneytown and primary competition is provided by 10 banks which have 17 offices located within 12 miles of 

any office of the merging banks. The evidence indicates that the elimination of 

competition between the merging banks or between the absorbed bank and other 

area banks would not be substantial, especially in relation to the overall competition existing among the numerous banking offices in the area.

The resulting bank would hold a modest share (4.8 percent) of the aggregate 

deposits owned by all banks in the service area and would be comparable in 

deposit size to three of its competitors. Each of the four largest banks hold 13 

percent, or more, of the aggregate deposits and would be substantially larger 

than the resulting bank. The combination of resources of the merging banks 

would have no significant adverse effects on competition in the service area.

The limited resources of the merging banks has restricted their ability to compete and meet the expanding needs of the service area. Their combined resources 

would enable the resulting bank to provide improved and expanded competitive 

services, especially in the fields of commercial and industrial lending, instalment 

lending and trust services.

The proposed merger would not substantially lessen competition, tend to create 

a monopoly nor be in restraint of trade. It would resolve a serious lack of depth 

in the absorbed bank’s management and enable the resulting bank to more adequately meet the expanding needs of the community.

Case No. 8

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

First State Bank,

Armour, South Dakota 

to acquire the assets and assume

the liabilities of

Delmont State Bank,

Delmont

3,390

1,600

Summary report by Attorney General, February 7, 1966

The parties to the proposed acquisition are the only banks located in adjacent 

communities, and they therefore provide the most likely alternative sources of 

banking services for these communities. Since there are few other banking institutions readily available to the residents of these communities, this acquisition 

would severely restrict the communities’ banking choices. At the same time, no 

improvement in services to the public is promised. In view of these facts and the 

possibility that Delmont could be sold to parties not now competing in this area, 

the proposed acquisition will have an adverse effect on competition in the communities served by State and Delmont.

Basis for Corporation approval, March 24, 1966

The applicant, a small unit bank in Armour, South Dakota, would acquire the 

assets and assume the liabilities of a unit bank less than one-half its size located

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
42 FEDERAL DEPOSIT INSURANCE CORPORATION

in Delmont, 12 miles southeast. The two banks primarily serve their immediate 

areas and do not solicit business in each others’ service area. Competition between them which would be eliminated by the proposal is not significant.

The managing officer and principal stockholder of Delmont Bank desires to 

retire and liquidate his investment in the bank. The applicant can provide the 

managerial resources for the Delmont Bank, which would be operated as a branch 

and would be actively managed by the present cashier who has been with Delmont Bank since 1943. The proposal would assure continued banking facilities in 

Delmont under locally known active management.

Applicant would continue its position as third largest in the combined service 

area and the resulting bank would hold $3.8 million in IPC deposits. Its closest 

competitor is a branch of a bank with $57 million in total deposits located 11 

miles north from Armour. There would be five other banks in the combined service area ranging in IPC deposit size from $1.5 million to $5.6 million. The proposal would have no significant adverse effects on competition in the combined 

service area.

Following the consummation of the proposal there would be seven banking 

alternatives within a 23-mile radius of Armour, and the proposal would not result 

in a monopoly, a substantial lessening of competition, or be in restraint of trade. 

The convenience and needs of the Delmont community would be served in a more 

adequate manner through new and expanded services which would be offered by 

the larger resulting bank.

Resources

(in

thousands

of dollars)

Banking offices

Case No. 9 In

operation

To be

operated

United Bank of Union,

Union, Missouri 

to acquire the assets and assume

the liabilities of

10,950 1 1

Bank of Gray Summit,

Gray Summit

1,961 i

Approved under emergency provisions. No report requested from Attorney 

General.

B a s is f o r C o r p o ra tio n A p p r o v a l, A p r il 4 , 1 9 6 6 

The elimination of the assets classified Loss and Doubtful would exceed the 

bank’s capital structure and impair its deposits. Efforts to rehabilitate the bank 

by collection of these assets or by recapitalization were unsuccessful and the 

bank is faced with the threat of permanent closing. Since the estimated amount 

of deposit liabilities in excess of the insured limit of $10,000 is moderate, the 

Corporation deems it to be in the public interest to acquire the unacceptable 

assets of Gray Summit so that a deposit assumption transaction can be effected 

with United Bank of Union. Missouri law does not permit branching, so the office 

at Gray Summit will be closed; however, Union is located only 12 miles away and 

management of that institution is familiar with the service area of Gray Summit.

Case No. 10

Resources

(m

thousands

of dollars)

Banking offices

In

operation

To be

operated

Bank of Buffalo,

Buffalo, New York

58,765 8 9

to merge with

State Bank of Kenmore,

Kenmore

18,167 1

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 43

Summary report by Attorney General, March 14, 1966

The proposed merger of the Bank of Buffalo, with total deposits of $51 million, 

and the State Bank of Kenmore, with total deposits of $16 million, would eliminate 

existing competition between the merging banks and would eliminate the only 

remaining independent bank in the area in which these banks now compete with 

each other, an area with an estimated population of over 300,000.

Commercial banking in the area affected and in the Buffalo area generally is 

highly concentrated, with the two largest of the six banks in the Buffalo area 

accounting for over 80 percent of loans and deposits and the three largest having 

more than 96 percent of such accounts held by area banks.

While the amount of competition that would be eliminated by the merger is 

relatively small, and the added concentration in the area of the resulting bank is 

insubstantial, it is our opinion that in light of the existing concentration in the 

populous industrial and trade area of Buffalo, the elimination of one of only five 

banking alternatives in the principal area affected would have an adverse effect 

on competition.

Basis for Corporation approval, May 2, 1966

The applicant, headquartered in Buffalo, New York, proposes to acquire by 

merger a relatively small bank in Kenmore, 5.8 miles north. The applicant’s branch 

closest to Kenmore Bank is 2.8 miles distant. There are a number of competing 

bank offices closer to, and intervening, the applicant’s offices which are nearest 

Kenmore Bank. Kenmore Bank has been a very conservatively operated institution and does not afford substantial competition to the applicant or to other banks 

in its service area.

The size of the applicant bank will not be significantly increased as a result of 

the proposed merger. The resulting bank will have IPC deposits of $58 million. 

The three larger banks in applicant’s primary service area have main offices 

within one-half mile of the applicant’s main office and each holds IPC deposits 

of $299 million or more. A branch of one of these banks is located two blocks 

from Kenmore Bank and all of these three large banks have offices in Kenmore 

Bank’s primary service area. In addition, the applicant competes with the main 

offices of three mutual savings banks each of which holds $259 million or more 

in IPC deposits and is located within 0.3 mile of applicant’s main office. Two 

branches of two of these mutual savings banks also compete with Kenmore Bank 

in its primary service area.

The village of Kenmore is situated in an active retail shopping area in which 

there is a good demand for both commercial loans and consumer credit. The 

conservative Kenmore Bank with its management succession problem and relatively inexperienced executive officer, its limited loan volume and restrictive lending policies, has not adequately met the needs of the community. The resulting 

bank will offer numerous additional services which are not presently available at 

Kenmore Bank.

The proposed transaction will not tend toward a monopoly, substantially lessen 

competition or be in restraint of trade in any area served by the participating 

banks. The management problems of Kenmore Bank would be resolved by the 

proposal and the resulting bank, with its larger resources and aggressive management, will enhance competition in the Kenmore area and more adequately 

serve the convenience and needs of the Kenmore community.

Case No. 11

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

The Northwestern Bank, 266,560 67 69

North Wilkesboro, North Carolina

to merge with

Citizens Bank, 11,094 2

Charlotte

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
44 FEDERAL DEPOSIT INSURANCE CORPORATION

Summary report by Attorney General, March 15, 1966

Northwestern is the fifth largest bank in the State of North Carolina, with 64 

branches located throughout the State and with total deposits of $203.8 million 

as of June 30, 1965.

Both the main office and only branch of Citizens Bank are located in Charlotte, 

North Carolina, which has a population of 201,564. As of June 30, 1965, Citizens 

had total deposits of $9.1 million. It ranks seventh in total deposits among eight 

banks with main offices or branches located in Charlotte. Among its competitors 

are the four largest banks in the State, two of which have their main offices in 

Charlotte.

Competition between the merging banks appears minimal, since the closest 

offices of Northwestern are located 32 to 38 miles from the city. In view of this 

fact and in view of the size of the merging bank in comparison with its competitors in Charlotte, the effect of the proposed merger on competition would not be 

adverse.

Basis for Corporation approval, May 2, 1966

Northwestern, fifth largest bank in North Carolina with resources of $266.6 

million, is headquartered in North Wilkesboro and operates a branch system 

throughout the north-central and western sections of the State. It would acquire 

through the merger a bank with two offices and $11.1 million in resources located 

in Charlotte, 79 miles from North Wilkesboro. The merging banks’ closest offices 

are 38 miles apart and a number of banking alternatives intervene their locations. 

There are few, if any, deposit and loan accounts held by either merging bank 

which originate in the other’s service area.

Northwestern is directly competitive at several locations with the four largest 

banks in the State. On June 30, 1965, its 65 offices held 5.2 percent of the total 

deposits of the State’s 838 banking offices. The largest bank had 94 offices holding 21.6 percent of the deposits represented; the fourth largest bank, with 93 

offices, held 9 percent; and the resulting bank would hold 5.4 percent. The 

acquisition by Northwestern of the relatively small Citizens Bank would have no 

adverse effect on competition in Northwestern’s present service areas.

Citizens and four other small banks face direct competition in Charlotte, Citizens’ primary service area, from the State’s four largest banks, two of which 

have main offices in the city. Each of the large banks has deposits of more than 

$350 million as compared to $9.1 million for Citizens and $7 million to $15 million 

held by the other small banks. Northwestern’s entry into Charlotte would substantially increase the lending limit available at Citizens and provide trust, agricultural and complete data processing services, none of which Citizens presently 

offers.

The proposed merger would not eliminate competition, tend to create a monopoly nor in any other manner be in restraint of trade. The larger financial resources 

and additional services to be offered by the resulting bank would increase competition in Charlotte and more adequately meet the convenience and needs of 

the growing Charlotte community.

Case No. 12

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Northwest Pennsylvania Bank &

Trust Company,

Oil City, Pennsylvania 

to merge with

95,776 13 14

First National Bank of

Cambridge Springs,

Cambridge Springs

4,715 1

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 45

Summary report by Attorney General, February 18, 1966

Northwest, a twelve-office bank in northwestern Pennsylvania with deposits of 

$85,298,000, proposes to acquire the single-office First National Bank in Cambridge Springs, with deposits of $4,142,000.

It appears that competition between the merging banks is probably not substantial.

The four-county area in which Northwest’s offices are located has been the 

scene of a pronounced merger trend involving the acquisition of more than 20 

independent banks in recent years. Northwest has been a principal participant 

in this trend, having obtained its 11 branches by acquisitions since 1955.

It is our opinion that the proposed merger, standing alone, would not appear 

to have a significant adverse effect on competition, but it represents another in 

a series of mergers which has resulted in the elimination of more than 20 independent banks as competitors in the four-county area, and has furthered the 

concentration of banking resources in the hands of a few large institutions.

Basis for Corporation approval, May 4, 1966

Northwest is headquartered in Oil City, Pennsylvania and presently operates 

13 offices in 10 communities located throughout four counties, including two 

branches in Meadville which serve the central portion of Crawford County. The 

proposed merger would extend Northwest’s influence to the north-central part of 

Crawford County through the acquisition of National’s sole office in Cambridge 

Springs. Meadville, 15 miles from Cambridge Springs, is the closest Northwest 

location to National and a competing bank office intervenes the communities. 

Neither merging bank derives a significant amount of business from the other’s 

service area.

Northwest is the largest bank in its present service areas and has deposits of 

$86.2 million. The addition of National’s $4.2 million in deposits would increase 

Northwest’s share of the aggregate deposits held by all banks in the combined 

service area from 19.5 percent to 20.4 percent. The second largest proportion,

19.1 percent, is held by Northwest’s local competitor in Oil City. Included among 

the closest of National’s competitors is a Meadville bank’s branch, 9 miles from 

Cambridge Springs. The Meadville banks are already in direct competition with 

Northwest. National’s closest competitor is a small bank, with $5.6 million deposits, 7 miles distant. Two large banks, with deposits of more than $45 million 

and $104 million, each have a branch in National’s service area. The small 

increase in Northwest’s size would have no significant effect on competition in 

its service areas or in the area to be served by the resulting bank. The substitution of National by a branch of Northwest would not adversely affect the competitive banking structure in the Cambridge Springs area.

The proposed merger would not substantially lessen competition or tend to 

create a monopoly, nor would it be, in any other manner, in restraint of trade. 

The conservatively operated National Bank would be replaced by a branch of an 

aggressively managed institution with substantially greater financial resources 

and more competitive banking services which would benefit the Cambridge 

Springs area.

Resources

(in

thousands

of dollars)

Banking offices

Case No. 13 In

operation

To be

operated

First National Bank of Hawaii, 385,620 38 3 9 1

Honolulu, Hawaii

to merge with

Cooke Trust Company, Limited,

Honolulu

4,085 1

Summary report by Attorney General, February 15, 1966

This is an application by the second largest commercial bank in the State of 

Hawaii and County of Honolulu to acquire the third largest trust company in the

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
46 FEDERAL DEPOSIT INSURANCE CORPORATION

State of Hawaii and County of Honolulu. The immediate reason for the proposed 

merger is a recent change in the banking and trust laws of Hawaii under which 

State banks, previously prohibited from engaging in trust business, are now permitted to do so, and trust companies, previously prohibited from engaging in the 

general banking business, are now in a position to enter that area.

Concentration in both of the areas here involved is particularly high at the 

present time. In commercial banking, the two largest banks control approximately 

75 percent of the total deposits, and applicant bank, the second largest bank, 

accounts for approximately 33 percent. In the trust business, the three largest 

companies in the State account for approximately 92 percent of total assets; 

Cooke Trust ranks third with approximately 13 percent.

Because of the removal of the previous statutory wall between them, the applicant bank is now one of the most significant potential competitors in the business 

of Cooke Trust. The proposed merger will eliminate such potential competition 

and forestall the opportunity for the reduction of concentration in the trust area.

Approval of this application would undoubtedly also trigger additional mergers 

among other commercial banks and trust companies in the State. In this respect 

Bank of Hawaii, the largest bank in the State, is currently negotiating to acquire 

through merger the largest trust company in the State. Mergers such as these 

can only serve to perpetuate the dominant position of Bank of Hawaii and applicant bank, the two largest banks in the areas concerned. We concluded that the 

proposed merger would have serious adverse competitive effects.

Basis for Corporation approval, May 12, 1966

The proposal would merge a $4.1 million uninsured trust company not engaged 

in accepting deposits into a $385.6 million commercial bank which does not exercise trust powers. The trust company, Cooke, would be operated as a trust department by the commercial bank, National, and Cooke’s sole office would be 

closed after the transfer of trust operations to National’s main office is accomplished. National operates 38 offices located on five major islands of Hawaii.

The merging institutions are headquartered three blocks apart in Honolulu, 

Hawaii. They serve the same area but there is a negligible amount of existing 

competition between them because of the basically different nature of their 

operations.

National is the second largest bank serving Hawaii and holds 32.8 percent of 

the aggregate total deposits owned by the seven commercial banks in the State; 

the largest bank holds 42 percent. The acquisition of the trust company’s relatively small volume of resources by National would not significantly change the 

relative sizes of the commercial banks or materially alter the existing competitive 

banking structure. Trust services eventually will be available at all of National’s 

branches, which are located throughout the islands, on an appointment basis. 

Present and potential customers will have the added convenience of conducting 

their fiduciary and regular banking business in the same location. Trust customers will be more fully protected under banking regulations, by deposit insurance, and by the far greater capital resources of the resulting bank. Trust services 

would be improved through the availability of National’s many specialized departments and customer services, including a well-staffed economic research department, securities research department and auditing department.

The proposed merger would not substantially lessen existing competition or 

tend to create a monopoly, nor would it, in any other manner, be in restraint of 

trade. Insofar as it may be asserted that the merger would eliminate potential 

competition, it is found that any such anticompetitive effects are clearly outweighed in the public interest by the probable effect of the transaction in meeting 

the convenience and needs of the community to be served by making better provision for trust services than would result from the separate operation of the two 

institutions.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 47

Case No. 14

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Golden State Bank,

Bell Gardens, California

23,935 4 5

to merge with

Bank of Pico Rivera,

Pico Rivera

17,537 1

Summary report by Attorney General, February 1, 1966

The proposed merger would combine two relatively small banks doing business 

in east-central Los Angeles County. Golden State Bank currently operates four 

offices in that area and has total deposits of $21 million. Bank of Pico Rivera is 

a unit bank but is of similar size in resources, with total deposits of $15 million. 

Each bank accounted for about 0.1 percent of all commercial bank deposits in 

Los Angeles County in 1964. The two banks apparently compete with each other 

at present only to a negligible extent, and their merger would not significantly 

increase concentration among commercial banks in Los Angeles County. The 

proposed merger is not likely to have an adverse effect on competition.

Basis for Corporation approval, June 1, 1966

The proposal would merge two small banks of similar size located in the Los 

Angeles, California metropolitan area. Applicant is headquartered in Bell Gardens 

and operates three branches at three locations within 8 miles of its main office. 

The sole office of the other bank is located in Pico Rivera, 7 miles from Bell 

Gardens. A branch of Bank of America directly intervenes the merging banks’ 

closest offices which are 31/2 miles apart. The amount of business each merging 

bank derives from the other’s service areas is negligible.

Applicant competes with branches of five of the eight largest banking systems 

in the State and Pico Rivera Bank competes with three of these large banking 

systems in its service area. The resulting bank would hold 14.2 percent, the 

fourth largest proportion, of the aggregate IPC deposits owned by the 26 banking 

offices in the combined service area. Seven branches of the Bank of America 

hold 36.3 percent, and the second and third largest proportions (slightly more 

than 17 percent each) are held by branches of the second and fifth largest banks 

in the State.

The substantially increased lending limit of the resulting bank would permit 

more adequate lending services to be offered in the communities to be served, 

and certain other services of the participating banks are to be extended or expanded. The resulting bank, because of its increased size and data processing 

capabilities, should be able to develop specialized programs to meet the needs 

and demands of all areas served as they are determined.

The proposed merger would not substantially lessen competition, or tend to 

create a monopoly, and it would not, in any other manner, be in restraint of trade. 

The asset and management problems of the Pico Rivera Bank would be resolved 

and the resulting bank would provide greater service to the communities involved.

Case No. 15

Resources

(in

Banking offices

un

thousands

of dollars)

In

operation

To be

operated

Matinecock Bank,

Locust Valley, New York

17,930 1 1

to merge with

Matinecock Safe Deposit Company,

Locust Valley

23

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
48 FEDERAL DEPOSIT INSURANCE CORPORATION

Summary report by Attorney General, May 31, 1966

Matinecock Bank proposes to merge into it Matinecock Safe Deposit Company, 

its subsidiary, which is engaged in the business of renting vaults and safe deposit 

boxes. The purpose of the merger is to simplify administration and the proposed 

transaction would have no effect on competition.

Basis for Corporation approval, July 5, 1966

The applicant, a State member bank, owns all except directors’ qualifying 

shares of Matinecock Safe Deposit Company, which conducts its business only 

at the main office of the applicant. All officers of the safe deposit company are 

also officers of the applicant. The purpose of the proposal is to eliminate duplication in accounting procedures and in the preparation of reports and records. The 

safe deposit facilities would be continued by the applicant following consummation of the merger.

The proposed merger would have no effect on competition and the factors of 

financial and managerial resources, future prospects, and convenience and needs 

of the community to be served are determined to be favorable to the proposal.

Resources

(in

thousands

of dollars)

B anking offices

Case No. 16 In

operation

To be

operated

Community Bank,

Huntington Park, California 

to acquire the assets and assume

the liabilities of

63,582 4 5

Commerce City Bank,

City of Commerce

6,735 1

Summary report by Attorney General, May 31, 1966

Application has been made to merge the Commerce City Bank, City of Commerce, California, into the Community Bank, Huntington Park, California, both of 

which are located in Los Angeles County.

Banking in Los Angeles is presently highly concentrated in the large California 

banking organizations, including Bank of America, Security First National Bank, 

United California Bank, Union Bank, and Crocker-Citizens Bank, all of which, except Union Bank, have offices in the immediate service areas of one or both of 

the merging banks. Of the total $12 billion of bank deposits in Los Angeles 

County, these five banks possess approximately $10.4 billion, or 86.3 percent. In 

contrast, the merging banks account for $56.5 million, or 0.47 percent, of the 

total bank deposits in the county.

In view of the relatively minor size of the applicant banks in relation to the 

highly concentrated banking market in which they now compete and the fact 

that their respective service areas are currently served by numerous other competing banks, including offices of the aforementioned large California banking 

systems, it is our opinion that the merger of the applicant banks will not adversely 

affect competition.

Basis for Corporation approval, July 5, 1966

The main office of Community and the sole office of Commerce are located 41/2 

miles apart in the Los Angeles, California metropolitan area. These are the 

closest offices of the banks participating in the proposed purchase and assumption transaction. Numerous offices of competing banks intervene Community’s 

four offices and the office of Commerce. The service areas of the participating 

banks do not overlap.

The assumption by Community of the deposits of Commerce would increase 

Community’s share of the aggregate IPC deposits in the resulting service area 

by less than 1 percent. The resulting bank would hold 9.9 percent of such deDigitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 49

posits and the 17 offices of Bank of America hold 43.7 percent, the largest proportion. Four of the five largest banks in the State presently compete directly 

with both participating banks. The proposal will bring Community into direct competition with the eighth largest bank in the State which has an office in the 

service area of Commerce. The increased size of Community and the substitution 

of its branch for the selling bank’s office would not have a material effect on 

competition in either bank’s service area.

The proposed transaction would not substantially lessen competition or tend 

to create a monopoly, nor would it be, in any other manner, in restraint of trade. 

Commerce is operating without effective management, the bank is drifting and 

its condition is deteriorating day by day. This proposal would aid in resolving 

the severe asset and management problems of Commerce.

Resources

(in

Banking offices

Case No. 17 Vjn

thousands

of dollars)

In

operation

To be

operated

California Canadian Bank,

San Francisco, California 

to acquire the assets and assume

the liabilities of

72,716 4 6

Northern California National Bank

of San Mateo,

San Mateo

8,499 2

Summary report by Attorney General, March 24, 1966

This proposal would unite the Canadian Bank, with $59 million in total deposits 

and operating three offices in San Francisco, Los Angeles, and Palo Alto, and 

Northern California National, with total deposits of $6 million and operating 

offices in San Mateo and nearby Belmont. This combination may have the effect 

of eliminating some existing competition between these two banks; for example, 

in 1965, $1,079,000, or 19 percent, of Northern California National’s total loans 

originated in Canadian Bank’s service areas. However, because neither bank has 

a significant share of the commercial banking business in any area they presently serve, their combining is not likely to have an adverse effect on competition.

Basis for Corporation approval, July 21, 1966

The applicant bank, Canadian, is a well-established institution with $72.7 million in resources and four offices in operation. Its outstanding stock, except for 

directors’ qualifying shares, is owned by Canadian Imperial Bank of Commerce, 

Toronto, Canada. Canadian’s main office serves a small area in downtown San 

Francisco, California, one branch is in Los Angeles, one is in Palo Alto and a 

recently established branch is in Lafayette, across the San Francisco Bay from 

the main office. Canadian proposes to purchase San Mateo Bank which was 

opened in 1964 and has $8.5 million in resources. The selling bank’s main office 

is in San Mateo and its only branch is in Belmont. Canadian’s Palo Alto branch 

and the selling bank’s Belmont branch are 12 miles apart and are the participating banks’ closest offices. Numerous banking offices intervene these locations and 

the service areas do not overlap.

Canadian competes directly with numerous offices of the eight largest banks in 

California at its four locations. The addition of the selling bank’s $6 million in 

deposits would provide the resulting bank with deposits of $70 million compared 

to $1 billion or more held by each of seven of its competitors. The selling bank 

competes in San Mateo directly with seven offices of six banks, including four 

banks which have more than $1 billion in deposits. Belmont branch competitors 

are three of the largest banks in California; two of these banks have more than 

$3.5 billion in deposits and one bank has deposits of $680 million.

The increase in size of Canadian and the substitution of its branches for the 

selling bank’s offices would have no adverse effects on competition in either

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
50 FEDERAL DEPOSIT INSURANCE CORPORATION

bank’s service areas. Canadian’s entry into San Mateo and Belmont would expand and add to the banking services presently offered by the selling bank. The 

increased lending limits, the availability of additional funds for lending, and specialized loan services are significant in view of the recent acceleration of industrial development in the San Mateo and Belmont areas. Canadian’s trust department facilities also would be available at the proposed branch locations.

The proposed transaction would not substantially lessen competition or tend 

to create a monopoly, nor would it be, in any other manner, in restraint of trade. 

All other factors required to be considered are favorable to the proposal which 

would strengthen the management of the San Mateo Bank’s offices and provide 

broader banking services to the communities served by the selling bank.

Case No. 18

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

The First Trust Company

of Allegany County,

Wellsville, New York 

to merge with

The First National Bank of Cuba,

Cuba

29,187

3,108

6 7

Summary report by Attorney General, March 29, 1966

The proposed merger involves the second largest (First Trust) and the smallest 

(First National) of six banks competing in the Cuba, New York area. In view, 

however, of First National’s very small size and its apparent inability to meet 

the credit demands of its area, the proposed merger would not appear to have 

adverse competitive effects.

Basis for Corporation approval, August 4, 1966

First Trust, total resources $29.2 million, operates a main office in Wellsville 

and five branches throughout the remainder of Allegany County, New York. First 

National, total resources $3.1 million, operates from a lone office in Cuba, 22 

miles northwest of Wellsville and 8 miles west of Friendship, the site of First 

Trust’s nearest office.

Available information indicates there is little competition between the two 

banks that would be eliminated by their merger. First National lacks successor 

management and may already have become an ineffective competitor because of 

its inability to meet the credit demands of its area. By virtue of this merger distinct benefits will accrue to the Cuba community, including a much expanded 

supply of credit, in terms of amount and variety, and several customer services 

already commonly provided by practically all the banks in the area except First 

National.

First Trust is the third largest bank in the relevant service area, holding about 

17.9 percent of the aggregate IPC deposits, and will move to second rank by the 

addition of First National’s small share, 1.8 percent. First Trust will continue to 

receive strong competition from the other Wellsville bank which holds 14.9 percent of the aggregate deposits, and from 11 other banks in the area. Cuba residents will continue to have alternative banking choices easily accessible, including its other unit bank.

The proposed merger would not substantially lessen competition or tend to 

create a monopoly, nor would it, in any other manner, be in restraint of trade.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 51

Case No. 19

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

The Bank of Prince William,

Woodbridge, Virginia

19,216 10 12

to merge with

The National Bank of Rosslyn,

Rosslyn

6,465 2

Summary report by Attorney General, June 21, 1966

Bank of Prince William, which has assets in excess of $19 million and operates 

nine branches, all located in Prince William and Fairfax Counties, is a subsidiary 

of Virginia Commonwealth Corporation, a bank holding company. The Bank of 

Rosslyn, with assets of $6,465,000, has experienced substantial bad loan writeoffs, and banking agencies have apparently encouraged its merger by Bank of 

Prince William. In the area served by the resulting bank, two other bank holding 

companies, United Virginia Bankshares and First Virginia Corporation, control 

19.5 percent and 13.2 percent, respectively, of the deposits of the 15 other banks 

operating therein. The proposed merger will give Virginia Commonwealth 4.7 

percent of such deposits. The present service areas of the merging banks do not 

overlap and competition between them is negligible.

The effect of the proposed merger on competition will not be adverse.

Basis for Corporation approval, August 4, 1966

This merger would combine National, which has been in operation for about 

2Vi years, with the applicant, a well-established bank. National’s two offices are 

located in Arlington County, Virginia, and applicant operates 10 offices: the main 

office and seven branches in Prince William County and two branches in Fairfax 

County. The nearest offices of these two banks are 8 miles apart and numerous 

competing banks intervene. The service areas overlap at this point to a small 

degree and the amount of competition between the subject banks which would 

be eliminated by this merger is not significant.

The resulting bank would hold 4.7 percent of the aggregate IPC deposits presently held by the 17 banks in the overall service area. The five largest banks hold 

proportions ranging from 7.7 percent to 19.5 percent. In this group, the applicant 

already competes with the fourth largest bank, which holds 11.1 percent. The 

increased size of applicant and the extension of its operations into Arlington 

County would not have a significantly adverse effect on competition in the service 

area of either of the merging banks.

During its relatively short existence, National has experienced serious management and asset problems which would be resolved by the proposed transaction. 

This merger would not substantially lessen competition, tend to create a monopoly nor in any other manner be in restraint of trade.

Case No. 20

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

LeClaire State Bank,

LeClaire, Iowa 

(proposed new bank) 

to acquire a portion of the assets

and assume a portion of

the liabilities of

I 2

Farmers Savings Bank,

Princeton

4,631 2

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
52 FEDERAL DEPOSIT INSURANCE CORPORATION

Summary report by Attorney General, Aprii 11, 1966

Farmers Savings Bank of Princeton, Iowa, operates a main office in Princeton 

and a limited service office at LeClaire, Iowa, 5 miles south of Princeton. In order 

to convert the LeClaire office into an institution with full banking powers, the 

owners of Farmers Savings Bank have applied for permission to own and operate a state chartered bank at the facilities now occupied by the LeClaire office. 

If approved, Farmers Savings Bank would transfer to the new bank approximately 

40 percent of its assets and liabilities and continue to operate its own facilities 

in Princeton with the remaining 60 percent. This percentage corresponds approximately to the business now transacted at LeClaire and Princeton, respectively. 

The entire capital stock of the new bank would be distributed among the stockholders of Farmers Savings Bank. Neither Princeton nor LeClaire has any banking facilities other than those now provided by Farmers Savings Bank. It is not 

anticipated that the proposed transaction will have adverse effects on competition in the relevant service area.

Basis for Corporation approval, August 4, 1966

The proposals would establish a new bank in LeClaire, Iowa through the acquisition and assumption of a portion of the assets, liabilities, and capital accounts 

of Farmers, a $4.6 million bank headquartered in Princeton, 5 miles north. The 

proposed new bank would replace the limited service LeClaire office of Farmers 

and would acquire 40 percent of Farmers’ loans and deposits, which represents 

the amount estimated to originate in the LeClaire area. Following consummation 

of the proposals, Farmers and the proposed new bank would be commonly 

owned, controlled and managed. There are no other banks in Princeton or 

LeClaire. It is apparent from the nature of the transactions that the participating 

banks cannot presently be in competition with each other and the resulting common ownership and control precludes competition between them in the future.

The purchase and assumption transaction would not lessen competition or 

tend to create a monopoly, nor would it be, in any other manner, in restraint of 

trade. The convenience and needs of the LeClaire community would be more 

adequately served through the more complete banking services to be offered by 

the proposed new bank.

Case No. 21

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Waccamaw Bank & Trust Company,

Whiteville, North Carolina 

to merge with

49,415 20 21

The Commercial Bank of

Dunn, North Carolina,

Dunn

8,063 1

Summary report by Attorney General, May 23, 1966

The Commercial Bank, organized in 1919, operates its only office in Dunn, North 

Carolina, 60 miles southeast of Durham. As of March 31, 1966, Commercial had 

total assets of $8.1 million, total deposits of $7 million, net loans of $4 million, 

and total capital accounts of $839,000.

Waccamaw Bank and Trust Company, organized in 1926, operates its home 

office and three branches in Whiteville, North Carolina, 90 miles south of Dunn. 

It also operates branches in 12 other small southeastern North Carolina communities. As of March 31, 1966, Waccamaw had total assets of $49.4 million, total 

deposits of $42.9 million, net loans of $30.2 million, and total capital accounts of 

$5.1 million.

There appears to be no competition between the merging banks. Their home 

offices are 90 miles apart and Commercial is over 40 miles from the nearest

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 53

branch of Waccamaw. Thus, the proposed merger would not eliminate direct 

competition in Commercial’s service area and would not remove a banking alternative for the people residing in that area. The merger would, however, eliminate 

another independent bank in North Carolina, a State where concentration of 

banking resources is pronounced.

Basis for Corporation approval, August 4, 1966

The applicant is a $49 million bank operating 19 branches and headquartered 

in Whiteville, North Carolina. One recently established branch is located 160 

miles north from the main office; the remainder of applicant’s offices serve the 

southeastern portion of the State. The merging bank, Commercial, is an $8.1 million single-office bank located in Dunn, 90 miles from Whiteville and 53 miles 

from applicant’s nearest office. The service areas of the merging banks do not 

overlap.

Applicant presently is more than five times the deposit size of its only competitor in Whiteville and the merger will not significantly increase the size disparity. 

The resulting bank would hold $52.2 million in deposits. Three of its competitors 

have deposits ranging from more than $141 million to almost $515 million and a 

fourth competitor has deposits of more than $67 million. The latter has made 

application to merge with applicant’s only competitor in Whiteville. There would 

not be a material effect on competition in the applicant’s present overall service 

area as a result of this proposal.

Commercial holds 22.3 percent of the deposits held by the banking offices in 

its service area, the second largest proportion. The largest bank in Commercial’s 

service area, and the only local competitor in Dunn, dominates the market, its 

six offices holding 54.7 percent of the area’s deposits; it is the second largest 

bank in applicant’s service area. There would be no change in the five banks’ 

relative shares of the area’s deposits or loans as a result of the merger since 

applicant presently has no office in Commercial’s service area. The proposal would 

introduce new services at the Dunn office, including trust and farm management 

services, and the resulting bank plans to establish an instalment loan department 

and provide drive-in facilities.

The proposed merger would not lessen competition or tend to create a monopoly, nor would it be, in any other manner, in restraint of trade. The progressively 

managed resulting bank with substantially larger financial resources would provide expanded and more competitive banking services in Commercial’s service 

area which would benefit the residents of the community of Dunn and surrounding 

area.

Case No. 22

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

The Bank of Tupelo,

Tupelo, Mississippi 

(change title to Bank of Mississippi) 

to merge with

34,953 7 8

Prentiss County Home Bank,

Booneville

5,025 1

Summary report by Attorney General, July 20, 1966

The Bank of Tupelo (Tupelo Bank) has assets of $35,242,751 and deposits of 

$30,309,335. Two of its offices are located in Tupelo, a town of 20,000, in northeast 

Mississippi. There are three banks in the community, operating a total of 10 

offices in the area. Tupelo Bank has 42 percent of total deposits of banks located 

there.

Prentiss County Home Bank (Prentiss Bank) has assets of $5,025,071 and 

deposits of $4,528,450. Its single office is located in Booneville, a town of 3,500

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
54 FEDERAL DEPOSIT INSURANCE CORPORATION

which is 29 miles north of Tupelo. The only other banking office in the town is 

a branch of Peoples Bank and Trust Company, the largest bank in Tupelo.

There is little competition between the merging banks, and we therefore conclude that the proposed merger would not adversely affect competition.

Basis for Corporation approval, August 18, 1966

Tupelo Bank presently operates seven offices in six communities located in 

northeastern Mississippi embracing Lee, Itawamba and Pontotoc Counties. The 

subject merger would extend its operations to the north and include entry into 

Prentiss County. The subject banks are separated by 26 miles, the distance 

intervening Prentiss Bank and the nearest office of Tupelo Bank, and are considered to be operating in separate trade areas. The principal competitor of both 

banks presently holds the largest proportion of IPC deposits in the overall trade 

area. This competing bank is headquartered in Tupelo and has a branch operating in Booneville, the site of Prentiss Bank’s sole office.

Tupelo Bank has total resources of $35.2 million and holds 19.7 percent of 

the IPC deposit volume of the banks in the trade area to be served by the resulting bank; by acquiring Prentiss Bank’s share of these deposits, Tupelo Bank’s 

IPC deposit volume will increase to 22.5 percent. The bank presently holding the 

largest proportion of these deposits has 20.5 percent.

Prentiss Bank with resources of $4.5 million is presently competing in the same 

town with a branch of a $32.8 million bank. This proposal would replace Prentiss 

Bank with a branch of Tupelo Bank and would offer the Booneville community the 

more modern services of the larger bank, including data processing, a more 

diversified time deposit program and an alternate source for trust services. The 

merger would also resolve internal problems which have developed from a management-ownership conflict within Prentiss Bank.

The proposed merger would not substantially lessen competition or tend to 

create a monopoly, nor would it be, in any other manner, in restraint of trade.

Case No. 23

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

First San Francisco Bank,

San Francisco, California 

to merge with

22,721 3 5

The Bank of Trade of San Francisco,

San Francisco

10,360 2

Summary report by Attorney General, August 18, 1966

The First San Francisco Bank (hereinafter referred to as the Charter Bank) has 

total assets of $22,721,000 and has its main office in downtown San Francisco, 

California. The Bank of Trade (hereinafter referred to as the Merging Bank) has 

total assets of $10,360,000 and also has its main office in downtown San Francisco, about 11/2 miles from the Charter Bank.

Both banks are located in or in close proximity to San Francisco’s financial 

district and compete with such huge San Francisco banks as Bank of America 

with over $16 billion in total resources and Wells Fargo Bank with over $4 billion 

in total assets. Even after the merger, the resulting bank will be among the smallest of the San Francisco commercial banks. The merger will improve the Merging 

Bank’s capital and management position and the resulting bank should be a more 

viable competitive factor in San Francisco.

Therefore, in the light of the facts in this matter, it appears that the proposed 

merger is not likely to have adverse competitive effects.

Basis for Corporation approval, August 18, 1966

The applicant and Bank of Trade, $22.7 million and $10.4 million institutions, 

respectively, are headquartered six blocks apart in downtown San Francisco,

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 55

California. Their operations are conducted in competition with numerous bank 

offices, including main and branch offices of the giant banks of the State. Applicant operates one other office in San Francisco and one in Pleasant Hill, 31 

miles to the northeast. Bank of Trade’s only branch is located in Sacramento, 90 

miles northeast of San Francisco, serving in the main the local Chinese community much as the main office concentrates its activities in the Chinatown section 

of San Francisco.

Bank of Trade has experienced serious asset problems resulting in supervisory 

demands for rehabilitation of its impaired capital and a strengthening of its management. Over the past year, the management of Bank of Trade has pursued 

merger negotiations with several other banks, having concluded this alternative 

as the only solution to its problems.

The proposed merger by the applicant will resolve the serious problems confronting Bank of Trade and assure continuance of its banking offices. There 

would be no adverse effect on banking competition, either in San Francisco or 

Sacramento. The proposed merger would not substantially lessen competition or 

tend to create a monopoly, nor would it. in any other manner, be in restraint of 

trade.

Case No. 24

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

South Side Bank and Trust Company, 25,718 1 2

Scranton, Pennsylvania

to merge with

The First National Bank of Moscow, 4,029 1

Moscow

S u m m a r y r e p o r t b y A t to r n e y G e n e ra l, J u ly 8 , 1 9 6 6

This is a proposal to merge the $24 million South Side Bank, third largest of 

Scranton’s eight banks, with the $3.5 million Moscow bank, 10 miles southeast 

of Scranton.

The proposed merger would not materially alter the structure of banking competition generally in the areas served by the merging banks, but it would elim inate the competition which now prevails between the two institutions.

Basis for Corporation approval, September 8, 1966

The proposal would merge two single-office banks located 10 miles apart in 

Lackawanna County, Pennsylvania. The applicant is a $25.7 million bank competing with nine other banks in Scranton and Dunmore located within 4 miles. 

The merging National in Moscow has $4 million in resources and its closest 

bank competition is furnished by the two Dunmore banks, 6 miles distant. The 

participating banks’ service areas overlap but there is only a minor amount of 

competition between them.

Applicant’s IPC deposits will be increased by $3.5 million to $25.8 million, which 

represents 9.2 percent of the aggregate held by the 17 banking offices in the 

combined service area. Three of the largest bank’s nine offices hold 38.1 percent 

of such deposits and the second largest bank holds 19.4 percent. The fourth 

largest bank is comparable in size to the resulting bank. All the banks which 

would compete with the resulting bank presently are competitive in some degree 

with the largest banks in Scranton. The increase in applicant’s size and its acquisition of a branch in Moscow would have no significant adverse effect on competition in either merging bank’s service area.

National has an earnings problem, a relatively small volume of loans, and does 

not offer a number of services normally found in commercial banks. The progressive management of applicant would make effective use of investment funds 

to improve the earnings of National and will provide a much greater lending limit

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
56 FEDERAL DEPOSIT INSURANCE CORPORATION

which apparently is needed in the growing Moscow area. Additionally, the applicant will make available at its Moscow office trust services, all types of instalment 

loans, FHA and Gl real estate loans, education loans, and other miscellaneous 

services usually found in commercial banks which are not presently offered by 

National.

The proposed merger would not substantially lessen competition or tend to 

create a monopoly, nor would it be in any other manner in restraint of trade, and 

would result in new and improved banking services available directly in Moscow.

Resources

(in

thousands

of dollars)

Banking offices

Case No. 25 In

operation

To be

operated

The Peoples Bank of Alpena,

Alpena, Michigan 

to consolidate with

17,512 2 3

The Posen State Bank,

Posen

2,671 1

Summary report by Attorney General, July 21, 1966

The only office of Posen State Bank in Posen, Michigan, is located approximately 23 miles northwest of the head office of Peoples State Bank in Alpena, 

Michigan, and about 30 miles north of Peoples Bank’s only branch office in 

Ossineke, Michigan. The service areas of the two banks overlap slightly northwest of Alpena and southeast of Posen, but less than 1 percent of the deposits 

and loans of the two banks are derived from each other’s service area.

It is not anticipated that the proposed merger will adversely affect commercial 

banking competition in the resulting service area.

Basis for Corporation approval, September 22, 1966

The applicant, headquartered in Alpena, Michigan, has $17.5 million in resources and a branch in Ossineke, 12 miles from the main office. It would acquire 

the sole office of a $2.7 million bank in Posen, 23 miles from Alpena. The service 

areas of the participating banks’ closest office locations, Alpena and Posen, 

overlap to a small degree and there is only a negligible amount of competition 

between the two banks.

The applicant’s principal competitor has three offices in Alpena and two others 

in the applicant’s service area, and holds a dominant position in the combined 

service area with 50.2 percent of the aggregate IPC deposits owned by the five 

banks. Posen Bank’s closest competition is furnished by a bank more than three 

times its IPC deposit size located at the fringe of its service area, 15 miles away. 

The applicant would increase its proportion of the aggregate IPC deposits from

26.2 percent to 30.8 percent and would remain significantly smaller than the 

area’s largest bank. The increased size of the applicant would have very little 

effect on competition in its present service area and the merger may increase 

competition to some degree in the area served by Posen Bank.

Posen Bank is a small bank conducting relatively limited banking services 

whose history discloses little growth. Earnings are low and the bank’s elderly 

management desires to retire. The applicant would bring to the Posen area all 

types of instalment loans and other banking services not now offered by Posen 

Bank and will eventually provide trust services to the area.

The proposed merger would not substantially lessen competition or tend to 

create a monopoly, nor would it be, in any other manner, in restraint of trade.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 57

Case No. 26

Resources

(in

Banking offices

thousands

of dollars)

In

operation

To be

operated

Central Bank and Trust Company,

Broadway, North Carolina 

(change title to The Carolina Bank

and move main office to 145 W. Main 

St., Jonesboro Heights, Sanford) 

to merge with

13,994 3 8

The Carolina Bank,

Pinehurst

13,398 5

S u m m a r y r e p o r t b y A t to r n e y G e n e ra l, A u g u s t 2 , 1 9 6 6

The Central Bank and Trust Company, with deposits of $12,263,000, proposes 

to merge with The Carolina Bank, with deposits of $12,663,000. The banks, located near Raleigh, North Carolina, are 28 miles apart and their service areas 

overlap slightly. Both service areas are characterized by a high level of concentration in commercial banking.

The high level of concentration in these areas suggests the importance of each 

of the merging banks as a potential competitor in the service area of the other.

The proposed merger would eliminate actual and potential competition between 

the applicant banks.

Basis for Corporation a p p r o v a l, September 29, 1966

Central Bank and Trust Company, the applicant, operates three offices; one in 

Broadway, two in Sanford, and all in Lee County, which is situated in the central 

portion of North Carolina. The subject merger would extend its operations to the 

southwest by the acquisition of Carolina Bank’s five offices located in as many 

communities situated in Moore County. The participating banks, which are approximately the same size, operate in separate service areas, although there is 

a small degree of overlap and competition in the area intervening their closest 

offices. The nearest of these offices are 18 miles apart. The proposed merger 

would not substantially lessen competition, actual or potential, nor would it tend 

to create a monopoly or in any other manner be in restraint of trade.

The bank resulting from the merger would be only one-third as large as its 

principal competitor, which operates 10 offices in the service area. Additional 

banking alternatives are afforded by 15 offices of 11 other banks. The combined 

banks with a greater legal lending capacity would be better able to meet the 

credit needs of a growing economy, particularly in the Sanford area. The proposal would also extend to the communities presently served by Carolina Bank 

an alternate source for trust services now being offered by two competing banks.

Case No. 27

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

American Bank and Trust Co. of Pa.,

Reading, Pennsylvania 

to merge with

267,592 15 16

The Tamaqua National Bank,

Tamaqua

10,668 1

S u m m a r y r e p o r t b y A t to r n e y G e n e ra l, M a y 31, 1 9 6 6 

American Bank and Trust Co. of Pa., formerly the Berks County Trust Company, 

is the largest bank in Berks County and six adjacent counties which together 

constitute the area the applicant claims the resulting bank will serve. American 

operates 15 offices in Berks, Lancaster and Schuylkill Counties. In its present

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
58 FEDERAL DEPOSIT INSURANCE CORPORATION

form, American is the product of 11 previous mergers and consolidations, six 

since 1953, in which 12 formerly independent area banks have been absorbed.

The Tamaqua National Bank, Tamaqua, Pennsylvania, was organized in 1904. 

The town of Tamaqua with a population of 10,173 is located in northeastern 

Schuylkill County, adjacent to Berks County. It operates just one office in that 

city.

The area within a 7-mile radius of Tamaqua is served by four banks, including 

the Tamaqua National Bank and the Coaldale branch of American Bank and Trust 

Company. The proposed merger would eliminate all competition between these 

two banks and would reduce from four to three the number of banking alternatives in the Tamaqua area.

Basis for Corporation approval, October 6, 1966

Applicant is headquartered in Reading, Pennsylvania, 40 miles from the sole 

office of Tamaqua Bank which it would acquire by the proposed merger. Applicant has 12 offices in Berks County, one branch in Lancaster County and two 

branches in Schuylkill County. Tamaqua Bank is about 31/2 miles from applicant’s 

Coaldale branch. A survey of deposits and loans at the Coaldale branch and the 

Tamaqua Bank indicates each derives an insignificant amount of business from 

the other’s service area. Tamaqua Bank’s primary competition is furnished by two 

other banks in Tamaqua. All other offices of the applicant are located at much 

greater distances from Tamaqua and numerous competing banks intervene. There 

is very little competition between the merging banks which would be eliminated 

by the merger.

The service area of the resulting bank would include Berks, Schuylkill, and 

Lancaster Counties as well as portions of four contiguous counties in which 

applicant is authorized to establish branches under State law and a small portion 

of Carbon County near Coaldale. Applicant is the largest bank headquartered in 

this area, but only a moderate increase in its resources would result from the 

merger and the proportion of deposits to be held by the resulting bank would 

not be excessive.

The progressive, well-managed applicant bank has an outstanding record of 

service to its community, particularly in providing financial and other support for 

industrial diversification and expansion. The merger should have far-reaching 

benefits in Tamaqua, a depressed area since the decline of the coal industry. 

The applicant has the desire and the resources to assist the Tamaqua area in 

its efforts to improve its economy and the welfare of its people. The resulting 

bank would provide more complete banking and fiduciary services to the Tamaqua area, including electronic data processing, a much larger lending limit, and 

a full line of consumer credit and personal loan financing.

The economically depressed Tamaqua community would derive distinct benefits 

from the proposed merger which would not substantially lessen competition, or 

tend to create monopoly, and would not, in any other manner, be in restraint of 

trade.

Case No. 28

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

First State Bank in Tuscola,

Tuscola, Texas 

(proposed new bank) 

to acquire the assets and assume

the liabilities of

1

First State Bank of Tuscola,

Tuscola

3,410 1

Approved under emergency provisions. No report requested from the Attorney 

General.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 59

Basis for Corporation approval, October 12, 1966

Loans and other losses exceed the bank’s total capital. Directors were unable 

to rehabilitate the capital structure and this proposal has been formulated to prevent an ultimate closing of the existing bank which has been serving the community since 1912. There is no other bank in Tuscola and the nearest alternative 

banking offices are 18 miles distant. Therefore, the Corporation deems it in the 

public interest to facilitate the assumption of deposits and purchase of acceptable 

assets of the bank by a proposed new bank and thereby continue uninterrupted 

banking services in the community of Tuscola.

Case No. 29

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Industrial Valley Bank and

Trust Company,

Jenkintown, Pennsylvania

203,446 23 26

to merge with

The Security Trust Company of

Pottstown, Pa.,

Pottstown

28,796 3

Summary report by Attorney General, September 15, 1966

Industrial Valley Bank and Trust Company, headquartered in a suburb just 

north of Philadelphia, has assets of close to $200 million and operates 23 offices, 

most of which are located in Philadelphia County and Montgomery County. It is 

the resulting bank of a merger in 1961 between Jenkintown Trust Company and 

Industrial Trust Company of Philadelphia. Since this merger was consummated, 

Industrial Valley Bank and Trust has acquired four independent banks, three 

located in Chester County and the other in Montgomery County.

The head offices of the merging banks are approximately 30 miles apart. The 

branches of Industrial Valley Bank and Trust Company closest to Pottstown are 

the branches located in Royersford, East Greenville, and Phoenixville, 10, 13, and 

16 miles from Pottstown, respectively.

Although the applicants claim that there is “ no known duplication” of deposit 

accounts between the participating banks and that there is no evidence of deposits or loans originated by either bank in the service area of the other, it 

appears that these offices are sufficiently close to Pottstown to provide alternative 

sources of banking services to customers located in this area. This competition 

would, of course, be eliminated by the proposed merger. Moreover, the merger 

would eliminate Industrial as a potential competitor, via the establishment of a 

de novo branch, in the Pottstown area.

Basis for Corporation approval, November 3, 1966

The applicant operates its main office and seven branches in Montgomery 

County, Pennsylvania, 10 branches in Philadelphia County, four branches in 

Chester County, and derives the major portion of its business from the areas 

served in these three counties. In addition, it has one branch in Delaware 

County. Applicant, with $141.8 million in IPC deposits, competes at various 

locations with seven commercial banks each of which has IPC deposits exceeding 

$284 million, and four mutual savings banks each of which has IPC deposits 

exceeding $257 million. The largest commercial bank competitor has IPC deposits 

exceeding $1 billion and the largest mutual savings bank has IPC deposits 

exceeding $1.6 billion. Applicant’s acquisition of the $24.6 million IPC deposits 

owned by Security would have no significant effect on competition in the areas 

presently served by the applicant.

Security is headquartered in Pottstown about 30 miles northwest from Jenkintown, the headquarters of the applicant. The primary competition for Security

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
60 FEDERAL DEPOSIT INSURANCE CORPORATION

comes from two large banks already in competition with the applicant at other 

locations. These banks are Continental Bank and Trust Company, Norristown, 

with IPC deposits exceeding $305 million, and Philadelphia National Bank with 

IPC deposits exceeding $935 million. Continental Bank and Trust Company has 

two branches in Pottstown and one branch 2 miles distant; Philadelphia National 

Bank has two branches in Pottstown. The applicant’s closest branch is located 

at Royersford, 7 miles southeast of Pottstown. It receives competition from two 

branches of Continental Bank and Trust Company located at Spring City which 

is across the Schuylkill River from Royersford, less than 1 mile away. Neither 

merging bank is reported to have a significant volume of busines which originates 

in the other’s service area and the two merging banks do not compete with each 

other in a material degree. The significant change in the Pottstown area would 

be the introduction of a much larger bank in terms of total IPC deposits ($166.4 

million) which would compete more effectively with the two large banks presently 

operating there. The proposal would enhance existing competition in the Pottstown area.

In addition to providing a solution for the declining earnings problem of Security, the proposal would provide a substantially greater legal lending limit and 

computer services at the Pottstown offices. Business from a number of companies 

has been lost by Security to other larger banks because of its small legal lending 

limit and lack of computerized services. The resulting bank would provide Pottstown offices with the ability to offer a variety of new and many greatly expanded 

banking services, including broader trust administration, consumer instalment 

loans, construction loans, mortgage servicing, accounts receivable and warehouse 

loans, and the services of its computer for a variety of customer service requirements as well as for public agencies and industry. In addition, active management 

of Security is without succession and the proposal would provide an adequate 

depth of satisfactory management for the Pottstown offices.

Security cannot now effectively compete with the very large banks in its immediate area and any potential competition stemming from applicant’s legal ability 

to establish a de novo branch in Pottstown is considered to be minimal.

The proposal would not eliminate a substantial amount of competition, either 

actual or potential, and does not involve any tendency toward monopoly or 

restraint of trade.

Case No. 30

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

The First State Bank,

Guthrie, Oklahoma

6,424 1 1

to acquire the assets and assume

the liabilities of

The State Bank of Meridian,

Meridian

120 1

Summary report by Attorney General, August 1, 1966

The First State Bank (hereinafter referred to as the Charter Bank) has total 

assets of $6,424,859 and is located in the town of Guthrie, Oklahoma, a community of 10,000 population located about 20 miles north of Oklahoma City. The 

State Bank of Meridian (hereinafter referred to as the Acquired Bank) has total 

assets of $122,949 and is located in Meridian, a town with a population of 160 

located 12 miles east of Guthrie. Both banks were established in 1902 and neither 

has a previous merger history.

On the basis of the size and service capacity of the Acquired Bank and the 

existing geographical and population factors in the area, the removal of the 

Acquired Bank’s business to Guthrie and the closing of the Meridian office should 

not significantly affect the existing patterns of banking and banking competition 

in the area.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 61

It therefore does not appear that the proposed acquisition is likely to have 

adverse competitive effects.

Basis for Corporation approval, November 3, 1966

With assets totaling $119,900, Bank of Meridian, organized in 1902, is the 

smallest bank in Oklahoma, located in a declining community containing a population of 160. Over the last five years the bank’s net current operating earnings 

have averaged less than $500. Its insurer does not wish to continue fidelity coverage. Shortly after the death of the bank’s owner-operator in February, 1966, the 

heirs sold control to the managing officer of First State and he now serves as 

president and chairman of the board of Bank of Meridian. His family owns the 

majority of the stock of First State.

The new ownership has concluded Bank of Meridian is an uneconomic unit 

and requests consent for First State to purchase its assets and assume its liabilities, eliminating in the process Meridian’s only banking office because of the 

State prohibition of branch banking. Guthrie is 12 miles distant but there is a 

good highway between the two communities. Besides First State, total resources 

$6.4 million, Guthrie domiciles one other bank, a national institution with total 

resources of $10.1 million. The assumption by First State of Bank of Meridian’s 

deposits of less than $100,000 would have no effect on bank competition in 

Guthrie or the overall service area.

The proposed transaction would not substantially lessen competition or tend to 

create a monopoly, nor would it, in any other manner, be in restraint of trade.

Case No. 31

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Farmers State Bank,

Valparaiso, Indiana 

(change title to Northern Indiana 

Bank and Trust Company) 

to merge with

23,793 3 4

The Kouts State Bank,

Kouts

3,676 1

Summary report by Attorney General, November 9, 1966

Farmers State Bank, originally chartered in 1874, had, as of August 31, 1966, 

assets of $23,680,000, loans and discounts of $12,225,000, deposits of $21,450,000, 

and capital accounts of $1,713,000. Its past 10-year history shows no mergers or 

consolidations.

Kouts State Bank was chartered in 1945 and has no history of mergers or consolidations. It had, as of August 31, 1966, assets of $3,309,000, loans and discounts of $1,937,000, deposits of $3,013,000, and capital accounts of $269,000.

Despite some limited degree of competitive overlap, the two banks serve 

largely distinct and separate areas. The merger is therefore not likely to have 

substantial effect on banking competition in the areas served by these banks.

Basis for Corporation approval, December 1, 1966

The applicant, a $23.8 million bank headquartered in Valparaiso, Indiana and 

serving the central and northern portion of Porter County which is becoming 

increasingly industrialized, proposes to merge a $3.7 million bank serving the 

basically agricultural community of Kouts, 13 miles south from Valparaiso. The 

merging banks’ service areas overlap to a small degree but they serve essentially 

separate geographic and economic areas. Competition between the merging 

banks which would be eliminated by the proposed merger is not substantial.

The applicant and its principal competitor, which is also headquartered in 

Valparaiso, are equally matched from a competitive standpoint in terms of IPC

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
62 FEDERAL DEPOSIT INSURANCE CORPORATION

deposits owned. Applicant would move from its narrowly-margined second 

position to that of largest bank in the overall service area and would hold 25.7 

percent of the aggregate IPC deposits owned by the banking offices competing in 

the resulting bank’s service area. The increase in applicant’s size is not sufficient 

to significantly change the competitive situation in Valparaiso or the overall 

service area; the other Valparaiso headquartered bank holds 22.9 percent of the 

aggregate IPC deposits and the third largest bank holds 15.4 percent.

Porter County is presently undergoing a rapid industrial and residential development, especially in the northern sector. The present and anticipated growth of 

the County indicates a need for expanded banking services and the resulting 

bank with its offices in the northern, central and southern part of the County 

could meet the varied needs of the industrial, residential and agricultural sectors 

of the area. The increased lending limit of the resulting bank would place it in a 

better position than either of the merging banks to meet the credit needs of the 

farmers, businesses and industries. The present and potential customers of 

Kouts Bank would be provided with full trust services, outside farm representation, a complete instalment loan department and higher education loans. The 

Kouts Bank would be afforded the advantages of more advanced bookkeeping 

techniques, a public relations and advertising department and a full-time auditor.

The proposed merger would provide improved and enlarged banking services 

to the economically expanding community of Porter County and does not involve 

a substantial lessening of competition, restraint of trade or tendency toward 

monopoly.

Case No. 32

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Kings County Lafayette Trust Company, 196,293 10 10

B ro o k lyn , N ew Y ork

to merge with

Lafayette Safe Deposit Company, 1,789

Brooklyn

Summary report by Attorney General, October 11, 1966

Kings County Lafayette Trust Company proposes to merge into it Lafayette 

Safe Deposit Company, its subsidiary, which is engaged in the business of renting 

vaults and safe deposit boxes. The proposed transaction would have no effect 

on competition.

Basis for Corporation approval, December 1, 1966

Applicant owns all except six shares of Lafayette Safe Deposit Company which 

conducts business only in leased portions of six branches of the applicant. All 

officers of the Safe Deposit Company are also officers and employees of the 

applicant. The purpose of the merger is to simplify administration and to effect 

economies. The safe deposit facilities will be continued by the applicant following 

the consummation of the merger.

The proposed merger would have no effect on competition and the banking 

factors are determined to be favorable to the proposal.

Resources

(in

thousands

of dollars)

Banking offices

Case No. 33 In

operation

To be

operated

Farmers Bank of the State of Delaware,

Dover, Delaware 

to merge with

224,628 18 19

West Dover Trust Company,

Hartly

1,036 1

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 63

Summary report by Attorney General, October 21, 1966

Farmers Bank of the State of Delaware, Dover, Delaware, had, as of May 31, 

1966, total assets of $224,628,000, loans and discounts of $78,229,000, and 

deposits of $205,318,000. Capital accounts were $14,807,000. Since 1956, Farmers 

has acquired four other banks, three by merger and one by purchase.

West Dover Trust Company, Hartly, Delaware, as of May 31, 1966, held assets 

of $1,036,000, loans and discounts of $572,000, and deposits of $906,000. Capital 

accounts totaled $123,000.

Some competition between the two banks is thought to be present, and this will 

be eliminated by the proposed merger. However, in view of West Dover’s very 

small size and lack of significant growth since its organization, it is not believed 

that this merger will adversely affect the structure of banking in the area.

Basis for Corporation approval, December 1, 1966

The applicant, which is headquartered in Dover, Delaware and operates 18 

offices throughout the State, proposes to merge a bank in Hartly, 11 miles west 

from Dover. Applicant was chartered by an Act of the State legislature in 1807; 

the State is the bank’s major stockholder with 49 percent of the outstanding 

stock and is represented in applicant’s management by nine of the bank’s 27 

directors. Applicant has $224.6 million total resources and is the sole depository 

for State funds which comprise about one-half the bank’s total deposits. Hartly 

Bank, the smallest in the State, was organized in 1915, does not operate branches 

and has little more than $1 million in total resources. It is a conservatively 

operated bank which grants no consumer instalment loans, confines its lending 

function almost entirely to real estate mortgages and its service area primarily to 

its own community. There is a minimal amount of competition existing between 

the merging banks and the probability for effective competition between them in 

the future is remote.

Applicant is the fourth largest commercial bank in the State in terms of IPC 

deposits owned; it holds 12.9 percent of the commercial bank IPC deposits 

owned by the 20 banks in the State. The largest bank, Wilmington Trust Company, 

holds 39.2 percent. The merger would increase applicant’s IPC deposits by less 

than $1 million, or 0.1 percent of the aggregate, and would have a negligible 

effect on competition on a statewide basis.

There are 12 commercial bank offices within a radius of 12 miles from Hartly. 

These include the Dover and Smyrna offices of the applicant which are its closest 

offices to Hartly Bank, 11 miles distant. All competing bank offices are much 

closer to an office of the applicant than to Hartly Bank. The closest banking 

location to Hartly Bank is 9 miles, whereas, except for the Sudlersville bank in 

Maryland, all these banking offices are 2 miles or less from the nearest office of 

the applicant. The applicant’s Dover and Smyrna offices hold 33.8 percent of the 

aggregate IPC deposits owned by the 12 commercial banking offices in this area 

and the proposal would increase this proportion to 35.2 percent. The Bank of 

Delaware, headquartered in Wilmington, has two branches in this area holding 

21.4 percent, the second largest proportion. The two small independent banks 

located at Clayton and Wyoming are already in close competition with offices of 

the applicant or offices of other much larger banks. The small increase in applicant’s IPC deposit volume in this area and its establishment of a branch in 

Hartly would not significantly alter the competitive situation in the Hartly-Dover 

area.

Hartly Bank’s small lending limit of $12,100 is inadequate to meet the needs of 

its community. In addition to providing a much larger lending limit, the resulting 

bank will make available at the Hartly office consumer credit facilities, time 

certificates of deposit and trust department services, none of which are presently 

available at Hartly Bank.

The convenience and needs of the Hartly area will benefit from the proposed 

merger which will not involve a substantial lessening of competition, existing or 

potential, tend to create a monopoly nor be in restraint of trade.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
64 FEDERAL DEPOSIT INSURANCE CORPORATION

Case No. 34

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

South Oak Cliff State Bank,

Dallas, Texas 

to merge with

16,329 1 1

National Bank of Oak Cliff in Dallas,

Dallas

3,756 1

Summary report by Attorney General, December 5, 1966

The National Bank of Oak Cliff, a suburb of Dallas, Texas, was organized in 

1964. As of September 7, 1966, National had total assets of $3,922,000 and total 

net loans and discounts of $2,627,000. The South Oak Cliff State Bank, organized 

in 1942, is also a unit bank located in Oak Cliff, approximately 2 miles from the 

National Bank. As of September 7, 1966 State Bank had total assets of $17,107,000 

and total net loans and discounts of $10,229,000.

National Bank and State Bank are the two smallest banks in their service area 

and, even following merger, will remain substantially smaller than the three other 

banks in the area. Also, both banks have common management.

It is unlikely, therefore, that the merger would have an adverse effect on 

competition.

Basis for Corporation approval, December 22, 1966

The applicant is an old and established $16.3 million bank which has suffered 

heavy losses and presently is under-capitalized. It proposes to merge a relatively 

new national bank organized in 1964 which has resources of $3.8 million. 

Neither the area nor the national bank has grown as anticipated and National’s 

future prospects for earnings and deposit growth are unfavorable. The merging 

banks’ offices are 2 miles apart but a large portion of the business held by 

National is derived from outside both banks’ primary service area; furthermore, 

the banks have been commonly owned and commonly managed to a major 

degree since January 1966. There is virtually no competition between the participating banks which would be eliminated by the proposal.

Oak Cliff, part of greater Dallas which is located south of the Trinity River, 

is the primary service area of both banks. The three largest of nine banks offering 

competition in this area are within 2 miles of the applicant. Applicant’s IPC 

deposits will be increased by $ 2.2 million and the resulting bank would hold 

$15.2 million of such deposits. This increase would have little competitive 

significance in the primary service area where the three largest banks are the 

applicant’s closest competitors and hold IPC deposits of $53.7 million, $24.2 

million and $20.1 million.

The office of the national bank would be eliminated under the proposal in 

conformance with the State banking laws. However, it serves a relatively limited 

number of customers who could not easily be served by the resulting bank or 

one of the other three banks in the immediate area. The economic trend in the 

area is not favorable, a large portion of the newer national bank’s business comes 

from outside the service area and there does not appear to be sufficient local 

business to justify a need for two banks in this area. National bank has a 

favorable capital position which will bring some degree of strength to the undercapitalized applicant bank and the business of the two banks could be handled 

more economically, efficiently and effectively in one office.

The proposed merger would not substantially lessen competition, tend to 

create a monopoly nor in any other manner be in restraint of trade.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 65

Case No. 35

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

American Bank and Trust Co. of Pa.,

Reading, Pennsylvania 

to merge with

289,094 16 17

Columbia Trust Co.,

Columbia

6,204 1

Summary report by Attorney General, September 15, 1966

American Bank and Trust Co. of Pa. (“ American” ), formerly the Berks County 

Trust Company, is the largest bank in Berks County and six adjacent counties, 

which together constitute the area which American claims the resulting bank will 

serve. As of June 30, 1966, American had assets of $278,048,000 and deposits of 

$245,836,000. The Columbia Trust Co., Columbia, Pennsylvania (“ Columbia” ), a 

unit bank, as of June 30, 1966 had assets of $6,204,000 and deposits of $5,239,000.

There is little, if any, competition between American and Columbia as the 

nearest branch of American is approximately 35 miles from the Columbia bank. 

If the service area of American is considered to be the area from which it 

derives 75 percent or more of its deposits, then the addition of Columbia’s assets 

to those of American would increase American’s share of this market by less 

than one-half of 1 percent, measured either by “ IPC” demand deposits, “ IPC” 

time deposits or by total loans and discounts. At the present time, American has 

approximately 19 percent of IPC demand deposits, 21 percent of IPC time deposits 

and 24 percent of the loans and discounts in this service area. However, the 

merger would eliminate American as a potential competitor, via the establishment of a de novo branch, in Columbia’s service area.

Basis for Corporation approval, December 22, 1966

Applicant is headquartered in Reading, Berks County, Pennsylvania, 43 miles 

from the sole office of Columbia Trust Co., Columbia, Pennsylvania, which it 

would acquire by the proposed merger. Applicant has 12 offices in Reading and 

environs, one branch at Reamstown in Lancaster County, and three branches in 

Schuylkill County. Columbia is 28 miles from applicant’s Reamstown branch. All 

other offices of the applicant are located at greater distances from Columbia and 

numerous competing banks intervene. Because of this there is little if any competition between the merging banks. The Trust Co., moreover, is unlikely to be a 

significant competitor in the future. Its condition is only fair, it lacks management 

succession, and it faces aggressive competition from far larger banks which 

have entered or are seeking to enter the Columbia area, displacing the small 

unit banks which formerly were Trust Co.’s competitors.

The resulting bank would compete in Berks, Schuylkill, and Lancaster Counties, 

a small portion of Carbon County, and part of York County across the Susquehanna River from Columbia. While it would be the largest bank in its service area, 

only a very small increase in its resources would result from this merger. Among 

the many banks with which it will compete are several with substantial resources.

Applicant is a progressive, well-managed bank with favorable financial history 

and a good record of service to its communities, particularly in providing loans 

for industrial expansion. The merger should stimulate competition among banks 

of comparable size and ability. It will benefit the Columbia area, which requires 

assistance to improve its economy, by fulfilling needs for large amounts of credit 

and by providing banking and fiduciary services to an extent not heretofore available, including electronic data processing facilities.

There is nothing to indicate that applicant would be interested in de novo

penetration of Columbia, or that it could show the city needed a fourth bank, as 

would be required.

The merger would not substantially lessen competition, tend to create 

monopoly, nor in any other manner be in restraint of trade.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
66 FEDERAL DEPOSIT INSURANCE CORPORATION

Case No. 36

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

The Western Security Bank,

Sandusky, Ohio 

to acquire assets and assume

liability to pay deposits of

23,506 2 44

The Peoples Savings Association,

Sandusky

11,401 2

Summary report by Attorney General, November 30, 1966

This is a proposal by the smallest of Sandusky’s three commercial banks to 

acquire the assets and assume the liabilities of the larger of that city’s two 

savings and loan institutions.

Peoples Savings now offers only mortgage loan and savings deposit services; 

these services are also offered by Western Security. The offices of the two 

institutions are in close proximity in downtown Sandusky. Thus, the proposed 

merger would eliminate all competition between the merging banks with respect 

to mortgage loan and savings deposit services and would substantially increase 

the existing level of concentration in these markets.

Although the merging banks presently are under a degree of common direction 

and ownership, the proposed merger would eliminate permanently both present 

and future competition between them.

Basis for Corporation approval, December 22, 1966

The smallest commercial bank in Sandusky, Ohio, with less than $20 million 

IPC deposits, proposes to purchase the assets and assume the liabilities of 

Association, the larger of two savings and loan institutions in Sandusky, which 

has $10.7 million IPC deposits. Each institution operates one branch which is 

located in the city. The basically different nature of the institutions’ operations 

limits competition between them to real estate mortgage loans and savings funds. 

The competition existing between the participating institutions for these services, 

which constitute only two of the many and varied types of loans, deposit and 

other commercial bank services offered by the applicant, is not substantial 

relative to the total competition existing within Sandusky and Erie County. Furthermore, any competition between the participants for these services would be 

tempered by the substantial common ownership, the common management and 

harmonious relationship between them.

The increase in applicant’s size would be relatively large but the competitive 

balance in Sandusky and Erie County would not be adversely altered. The applicant would be placed on an equitable footing with the other two commercial 

banks in Sandusky with respect to size as well as legal lending limits. Neither 

of the institutions involved, because of the lack of both size and adequate lending 

limit on the part of applicant and because of restricted services offered by the 

Association, are in a favorable position to compete for and obtain an equitable 

share of the new business being generated in the industrially expanding area. 

The numerous additional services of a commercial bank would become conveniently available at Association’s offices. The customers of Association and other 

residents of the area who prefer to deal with a savings and loan association 

would continue to be served by one such institution in Sandusky. The resulting 

bank intends to exercise trust powers which would be a convenience to the 

community since no bank in Erie County presently offers fiduciary services.

The proposal would resolve the unimpressive future prospects for growth and 

earnings of the Association and stimulate commercial bank competition. The 

merger would not substantially lessen competition, tend to create a monopoly nor 

in any other manner be in restraint of trade.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 67

Case No. 37

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

The Bank of New York,

New York, New York 

to merge with

The Fifth Avenue Bank Safe

Deposit Vaults, Inc.,

New York

1,273,159

303

8 8

Summary report by Attorney General, November 30, 1966

The Bank of New York proposes to merge into it its subsidiary, The Fifth Avenue 

Bank Safe Deposit Vaults, Inc., which is engaged in the business of renting vaults 

and safe deposit boxes. The purpose of the merger is to simplify administration 

and the proposed transaction would have no effect on competition.

Basis for Corporation approval, December 29, 1966

The Fifth Avenue Bank Safe Deposit Vaults, Inc. is wholly-owned by The Bank 

of New York except for directors’ qualifying shares. It is engaged solely in a safekeeping and safe deposit box rental business on the bank’s premises; all its 

officers are also officers of the bank.

The objective of the proposed merger of the two is to simplify administration 

and permit greater efficiency and economy of operation. Consummation of the 

merger would have no effect on competition nor would it affect the condition of 

the bank or its future prospects.

The proposed merger would not lessen competition, tend to create a monopoly 

nor in any manner be in restraint of trade.

1 Office of merged company expected to be closed after transfer of trust operations to main

office.

2 Site of present LeClaire office of Farmers Savings Bank.

3 Safe deposit company occupied leased portions of six of applicant’s offices, which will be

continued.

4 Includes one office expected to be closed within six months after completion of purchase

transaction.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
LEGISLATION 

AND REGULATIONS

PART T W O

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
71

FEDERAL BANKING LEGISLATION— 1966

Public Law 89-356 

89th Congress, S. 1698 

February 21, 1966

AN ACT

To establish a procedure for the review of proposed bank mergers so as to eliminate

the necessity for the dissolution of merged banks, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That (a) section 18(c) of the Federal Deposit 

Insurance Act (12 U.S.C. 1828(c)) is amended to read:

“ (c)(1) Except with the prior written approval of the responsible agency, which 

shall in every case referred to in this paragraph be the Corporation, no insured 

bank shall—

“ (A) merge or consolidate with any noninsured bank or institution;

“ (B) assume liability to pay any deposits made in, or similar liabilities of, any 

noninsured bank or institution;

“ (C) transfer assets to any noninsured bank or institution in consideration of 

the assumption of liabilities for any portion of the deposits made in such insured 

bank.

“ (2) No insured bank shall merge or consolidate with any other insured bank 

or, either directly or indirectly, acquire the assets of, or assume liability to pay 

any deposits made in, any other insured bank except with the prior written 

approval of the responsible agency, which shall be—

“ (A) the Comptroller of the Currency if the acquiring, assuming, or resulting 

bank is to be a national bank or a District bank;

“ (B) the Board of Governors of the Federal Reserve System if the acquiring, 

assuming, or resulting bank is to be a State member bank (except a District 

bank);

“ (C) the Corporation if the acquiring, assuming, or resulting bank is to be 

a nonmember insured bank (except a District bank).

“ (3) Notice of any proposed transaction for which approval is required under 

paragraph (1) or (2) (referred to hereafter in this subsection as a ‘merger transaction’) shall, unless the responsible agency finds that it must act immediately in 

order to prevent the probable failure of one of the banks involved, be published'— 

“ (A) prior to the granting of approval of such transaction,

“ (B) in a form approved by the responsible agency,

“ (C) at appropriate intervals during a period at least as long as the period 

allowed for furnishing reports under paragraph (4) of this subsection, and 

“ (D) in a newspaper of general circulation in the community or communities 

where the main offices of the banks involved are located, or, if there is no such 

newspaper in any such community, then in the newspaper of general circulation 

published nearest thereto.

“ (4) In the interests of uniform standards, before acting on any application for 

approval of a merger transaction, the responsible agency, unless it finds that it 

must act immediately in order to prevent the probable failure of one of the banks 

involved, shall request reports on the competitive factors involved from the AttorDigitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
72 FEDERAL DEPOSIT INSURANCE CORPORATION

ney General and the other two banking agencies referred to in this subsection. 

The reports shall be furnished within thirty calendar days of the date on which 

they are requested, or within ten calendar days of such date if the requesting 

agency advises the Attorney General and the other two banking agencies that an 

emergency exists requiring expeditious action.

“ (5) The responsible agency shall not approve—

“ (A) any proposed merger transaction which would result in a monopoly, or 

which would be in furtherance of any combination or conspiracy to monopolize 

or to attempt to monopolize the business of banking in any part of the United 

States, or

“ (B) any other proposed merger transaction whose effect in any section of 

the country may be substantially to lessen competition, or to tend to create a 

monopoly, or which in any other manner would be in restraint of trade, unless 

it finds that the anticompetitive effects of the proposed transaction are clearly 

outweighed in the public interest by the probable effect of the transaction in 

meeting the convenience and needs of the community to be served.

In every case, the responsible agency shall take into consideration the financial 

and managerial resources and future prospects of the existing and proposed institutions, and the convenience and needs of the community to be served.

“ (6) The responsible agency shall immediately notify the Attorney General of 

any approval by it pursuant to this subsection of a proposed merger transaction. 

If the agency has found that it must act immediately to prevent the probable failure 

of one of the banks involved and reports on the competitive factors have been 

dispensed with, the transaction may be consummated immediately upon approval 

by the agency. If the agency has advised the Attorney General and the other two 

banking agencies of the existence of an emergency requiring expeditious action 

and has requested reports on the competitive factors within ten days, the transaction may not be consummated before the fifth calendar day after the date of 

approval by the agency. In all other cases, the transaction may not be consummated before the thirtieth calendar day after the date of approval by the agency.

“ (7) (A) Any action brought under the antitrust laws arising out of a merger 

transaction shall be commenced prior to the earliest time under paragraph (6) 

at which a merger transaction approved under paragraph (5) might be consummated. The commencement of such an action shall stay the effectiveness of the 

agency’s approval unless the court shall otherwise specifically order. In any such 

action, the court shall review de novo the issues presented.

“ (B) In any judicial proceeding attacking a merger transaction approved under 

paragraph (5) on the ground that the merger transaction alone and of itself constituted a violation of any antitrust laws other than section 2 of the Act of July 2, 

1890 (section 2 of the Sherman Antitrust Act, 15 U.S.C. 2), the standards applied 

by the court shall be identical with those that the banking agencies are directed 

to apply under paragraph (5).

“ (C) Upon the consummation of a merger transaction in compliance with this 

subsection and after the termination of any antitrust litigation commenced within 

the period prescribed in this paragraph, or upon the termination of such period 

if no such litigation is commenced therein, the transaction may not thereafter be 

attacked in any judicial proceeding on the ground that it alone and of itself constituted a violation of any antitrust laws other than section 2 of the Act of July 2, 

1890 (section 2 of the Sherman Antitrust Act, 15 U.S.C. 2), but nothing in this subsection shall exempt any bank resulting from a merger transaction from complying with the antitrust laws after the consummation of such transaction.

“ (D) In any action brought under the antitrust laws arising out of a merger 

transaction approved by a Federal supervisory agency pursuant to this subsection, 

such agency, and any State banking supervisory agency having jurisdiction within 

the State involved, may appear as a party of its own motion and as of right, and 

be represented by its counsel.

“ (8) For the purposes of this subsection, the term ‘antitrust laws’ means the 

Act of July 2, 1890 (the Sherman Antitrust Act, 15 U.S.C. 1-7), the Act of October 

15, 1914 (the Clayton Act, 15 U.S.C. 12-27), and any other Acts in pari materia.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL BANKING LEGISLATION— 1966 73

“ (9) Each of the responsible agencies shall include in its annual report to the 

Congress a description of each merger transaction approved by it during the period 

covered by the report, along with the following information:

“ (A) the name and total resources of each bank involved;

“ (B) whether a report was submitted by the Attorney General under paragraph

(4), and, if so, a summary by the Attorney General of the substance of such 

report; and

“ (C) a statement by the responsible agency of the basis for its approval.”

(b) Section 18 of such Act is further amended by adding at the end thereof 

the following new subsection:

“ (i) (1) No insured State nonmember bank (except a District bank) shall, without the prior consent of the Corporation, reduce the amount or retire any part of 

its common or preferred capital stock, or retire any part of its capital notes or 

debentures.

“ (2) No insured bank shall convert into an insured State bank if its capital stock 

or its surplus will be less than the capital stock or surplus, respectively, of the 

converting bank at the time of the shareholder’s meeting approving such conversion, without the prior written consent of—

“ (A) the Comptroller of the Currency if the resulting bank is to be a District 

bank;

“ (B) the Board of Governors of the Federal Reserve System if the resulting 

bank is to be a State member bank (except a District bank);

“ (C) the Corporation if the resulting bank is to be a State nonmember insured 

bank (except a District bank).

“ (3) Without the prior written consent of the Corporation, no insured bank shall 

convert into a noninsured bank or institution.

“ (4) In granting or withholding consent under this subsection, the responsible 

agency shall consider—

“ (A) the financial history and condition of the bank,

“ (B) the adequacy of its capital structure,

“ (C) its future earnings prospects,

“ (D) the general character of its management,

“ (E) the convenience and needs of the community to be served, and 

“ (F) whether or not its corporate powers are consistent with the purposes 

of this Act.”

Sec. 2. (a) Any merger, consolidation, acquisition of assets, or assumption of 

liabilities involving an insured bank which was consummated prior to June 17, 

1963, the bank resulting from which has not been dissolved or divided and has not 

effected a sale or distribution of assets and has not taken any other similar action 

pursuant to a final judgment under the antitrust laws prior to the enactment of 

this Act, shall be conclusively presumed to have not been in violation of any antitrust laws other than section 2 of the Act of July 2, 1890 (section 2 of the Sherman 

Antitrust Act, 15 U.S.C. 2).

(b) No merger, consolidation, acquisition of assets, or assumption of liabilities 

involving an insured bank which was consummated after June 16, 1963, and prior 

to the date of enactment of this Act and as to which no litigation was initiated 

by the Attorney General prior to the date of enactment of this Act may be attacked 

after such date in any judicial proceeding on the ground that it alone and of itself 

constituted a violation of any antitrust laws other than section 2 of the Act of 

July 2, 1890 (section 2 of the Sherman Antitrust Act, 15 U.S.C. 2).

(c) Any court having pending before it on or after the date of enactment of 

this Act any litigation initiated under the antitrust laws by the Attorney General 

after June 16, 1963, with respect to the merger, consolidation, acquisition of 

assets, or assumption of liabilities of an insured bank consummated after June 16, 

1963, shall apply the substantive rule of law set forth in section 18(c)(5) of the 

Federal Deposit Insurance Act, as amended by this Act.

(d) For the purposes of this section, the term “ antitrust laws” means the Act 

of July 2, 1890 (the Sherman Antitrust Act, 15 U.S.C. 1-7), the Act of October 15, 

1914 (the Clayton Act, 15 U.S.C. 12-27), and any other Acts in pari materia.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
74 FEDERAL DEPOSIT INSURANCE CORPORATION

Sec. 3. Any application for approval of a merger transaction (as the term 

“ merger transaction” is used in section 18(c) of the Federal Deposit Insurance 

Act) which was made before the date of enactment of this Act, but was withdrawn 

or abandoned as a result of any objections made or any suit brought by the 

Attorney General, may be reinstituted and shall be acted upon in accordance with 

the provisions of this Act without prejudice by such withdrawal, abandonment, 

objections, or judicial proceedings.

Approved February 21, 1966.

Public Law 89-485 

89th Congress, H. R. 7371 

July 1, 1966

AN ACT

To amend the Bank Holding Company Act of 1956.

Be it enacted by the Senate and House of Representatives of the United States

cf America in Congress assembled, That subsection (a) of section 2 of the Bank 

Holding Company Act of 1956 (12 U.S.C. 1841(a) ) is amended to read as follows: 

“ (a) ‘Bank holding company’ means any company (1) that directly or indirectly 

owns, controls, or holds with power to vote 25 per centum or more of the voting 

shares of each of two or mere banks or of a company that is or becomes a bank 

holding company by virtue of this Act, or (2) that controls in any manner the 

election of a majority of the directors of each of two or more banks; and, for the 

purposes of this Act, any successor to any such company shall be deemed to be 

a bank holding company from the date as of which such predecessor company 

became a bank holding company. Nothwithstanding the foregoing, (A) no bank 

and no company owning or controlling voting shares of a bank shall be a bank 

holding company by virtue of such bank’s ownership or control of shares in a 

fiduciary capacity, except as provided in paragraphs (2) and (3) of subsection (g) 

of this section, (B) no company shall be a bank holding company by virtue of its 

ownership or control of shares acquired by it in connection with its underwriting 

of securities if such shares are held only for such period of time as will permit 

the sale thereof on a reasonable basis, and (C) no company formed for the sole 

purpose of participating in a proxy solicitation shall be a bank holding company 

by virtue of its control of voting rights of shares acquired in the course of such 

solicitation.”

Sec. 2. Subsection (b) of section 2 of the Bank Holding Company Act of 1956 

(12 U.S.C. 1841(b)) is amended to read as follows:

“ (b) ‘Company’ means any corporation, business trust, association, or similar 

organization, or any other trust unless by its terms it must terminate within twentyfive years or not later than twenty-one years and ten months after the death of 

individuals living on the effective date of the trust, but shall not include (1) any 

corporation the majority of the shares of which are owned by the United States 

or by any State, or (2) any partnership.”

Sec. 3. Subsection (c) of section 2 of the Bank Holding Company Act of 1956 

(12 U.S.C. 1841(c) ) is amended to read as follows:

“ (c) ‘Bank’ means any institution that accepts deposits that the depositor has 

a legal right to withdraw on demand, but shall not include any organization operating under section 25 or section 25(a) of the Federal Reserve Act, or any organization that does not do business within the United States. ‘District bank’ means any 

bank organized or operating under the Code of Law for the District of Columbia.” 

Sec. 4. Subsection (d) of section 2 of the Bank Holding Company Act of 1956 

(12 U.S.C. 1841(d)) is amended to read as follows:

“ (d) ‘Subsidiary’, with respect to a specified bank holding company, means (1) 

any company 25 per centum or more of whose voting shares (excluding shares 

owned by the United States or by any company wholly owned by the United States) 

is directly or indirectly owned or controlled by such bank holding company, or is 

held by it with power to vote; or (2) any company the election of a majority of

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL BANKING LEGISLATION— 1966 75

whose directors is controlled in any manner by such bank holding com pany/’

Sec. 5. Subsection (g) of section 2 of the Bank Holding Company Act of 1956 

(12 U.S.C. 1841(g) ) is repealed.

Sec. 6. Section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841), 

as amended by this Act, is further amended by adding at the end thereof the 

following new subsections:

“ (g) For the purposes of this Act—

“ (1) shares owned or controlled by any subsidiary of a bank holding company 

shall be deemed to be indirectly owned or controlled by such bank holding 

company;

“ (2) shares held or controlled directly or indirectly by trustees for the benefit 

of (A) a company, (B) the shareholders or members of a company, or (C) the 

employees (whether exclusively or not) of a company, shall be deemed to be 

controlled by such company; and

“ (3) shares transferred after January 1, 1966, by any bank holding company 

(or by any company which, but for such transfer, would be a bank holding 

company) directly or indirectly to any transferee that is indebted to the transferor, or has one or more officers, directors, trustees, or beneficiaries in common with or subject to control by the transferor, shall be deemed to be indirectly 

owned or controlled by the transferor unless the Board, after opportunity for 

hearing, determines that the transferor is not in fact capable of controlling the 

transferee.

“ (h) The application of this Act and of section 23A of the Federal Reserve Act 

(12 U.S.C. 371), as amended, shall not be affected by the fact that a transaction 

takes place wholly or partly outside the United States or that a company is organized or operates outside the United States: Provided, however, That the prohibitions of section 4 of this Act shall not apply to shares of any company organized 

under the laws of a foreign country that does not do any business within the 

United States, if such shares are held or acquired by a bank holding company 

that is principally engaged in the banking business outside the United States.” 

Sec. 7. (a) The first sentence of subsection (a) of section 3 of the Bank Holding 

Company Act of 1956 (12 U.S.C. 1842(a) ) is amended to read as follows: “ It shall 

be unlawful, except with the prior approval of the Board, (1) for any action to be 

taken that causes any company to become a bank holding company; (2) for any 

action to be taken that causes a bank to become a subsidiary of a bank holding 

company; (3) for any bank holding company to acquire direct or indirect ownership or control of any voting shares of any bank if, after such acquisition, such 

company will directly or indirectly own or control more than 5 per centum of the 

voting shares of such bank; (4) for any bank holding company or subsidiary 

thereof, other than a bank, to acquire all or substantially all of the assets of a 

bank; or (5) for any bank holding company to merge or consolidate with any other 

bank holding company.”

(b) The second sentence of subsection (a) of section 3 of the Bank Holding 

Company Act of 1956 (12 U.S.C. 1842(a)) is amended by striking the words 

“ except where such shares are held for the benefit of the shareholders of such 

bank” at the end of clause (i) and inserting in lieu thereof the words “ except where 

such shares are held under a trust that constitutes a company as defined in section 2(b) and except as provided in paragraphs (2) and (3) of section 2(g)” .

(c) Subsection (c) of section 3 of the Bank Holding Company Act of 1956 is 

amended to read as follows:

“ (c) The Board shall not approve—

“ (1) any acquisition or merger or consolidation under this section which 

would result in a monopoly, or which would be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the business of 

banking in any part of the United States, or

“ (2) any other proposed acquisition or merger or consolidation under this 

section whose effect in any section of the country may be substantially to lessen 

competition, or to tend to create a monopoly, or which in any other manner 

would be in restraint of trade, unless it finds that the anticompetitive effects of

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
76 FEDERAL DEPOSIT INSURANCE CORPORATION

the proposed transaction are clearly outweighed in the public interest by the 

probable effect of the transaction in meeting the convenience and needs of the 

community to be served.

In every case, the Board shall take into consideration the financial and managerial resources and future prospects of the company or companies and the banks 

concerned, and the convenience and needs of the community to be served.”

(d) Subsection (d) of section 3 of the Bank Holding Company Act of 1956 

(12 U.S.C. 1842(d) ) is amended by striking the words “ in which such bank 

holding company maintains its principal office and place of business or in which 

it conducts its principal operations” and inserting in lieu thereof the words “ in 

which the operations of such bank holding company’s banking subsidiaries were 

principally conducted on the effective date of this amendment or the date on which 

such company became a bank holding company, whichever is later,” . Such subsection is further amended by adding at the end thereof the following new sentence: “ For the purposes of this section, the State in which the operations of a 

bank holding company’s subsidiaries are principally conducted is that State in 

which total deposits of all such banking subsidiaries are largest.”

Sec. 8. (a) Subsection (a) of section 4 of the Bank Holding Company Act of 

1956 (12 U.S.C. 1843(a)) is amended to read as follows:

“ (a) Except as otherwise provided in this Act, no bank holding company shall— 

“ (1) after the date of enactment of this Act acquire direct or indirect ownership or control of any voting shares of any company which is not a bank, or 

“ (2) after two years from the date as of which it becomes a bank holding 

company, or, in the case of any company that has been continuously affiliated 

since May 15, 1955, with a company which was registered under the Investment 

Company Act of 1940, prior to May 15, 1955, in such a manner as to constitute 

an affiliated company within the meaning of that Act, after December 31, 1978, 

retain direct or indirect ownership or control of any voting shares of any company which is not a bank or a bank holding company or engage in any business 

other than that of banking or of managing or controlling banks or of furnishing 

services to or performing services for any bank of which it owns or controls 

25 per centum or more of the voting shares.

The Board is authorized, upon application by a bank holding company, to extend 

the period referred to in paragraph (2) above from time to time as to such bank 

holding company for not more than one year at a time, if, in its judgment, such 

an extension would not be detrimental to the public interest, but no such extensions shall in the aggregate exceed three years.”

(b) Subsection (c) of section 4 of the Bank Holding Company Act of 1956 

(12 U.S.C. 1843(c)) is amended to read as follows:

“ (c) The prohibitions in this section shall not apply to any bank holding company which is a labor, agricultural, or horticultural organization and which is 

exempt from taxation under section 501 of the Internal Revenue Code of 1954, 

and such prohibitions shall not, with respect to any other bank holding company, 

apply to—

“ (1) shares of any company engaged or to be engaged solely in one or more 

of the following activities: (A) holding or operating properties used wholly or 

substantially by any banking subsidiary of such bank holding company in the 

operations of such banking subsidiary or acquired for such future use; or (B) 

conducting a safe deposit business; or (C) furnishing services to or performing 

services for such bank holding company or its banking subsidiaries; or (D) 

liquidating assets acquired from such bank holding company or its banking 

subsidiaries or acquired from any other source prior to May 9, 1956, or the date 

on which such company became a bank holding company, whichever is later;

“ (2) shares acquired by a bank in satisfaction of a debt previously contracted 

in good faith, but such bank shall dispose of such shares within a period of 

two years from the date on which they were acquired, except that the Board is 

authorized upon application by such bank holding company to extend such 

period of two years from time to time as to such holding company for not more 

than one year at a time if, in its judgment, such an extension would not be

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL BANKING LEGISLATION— 1966 77

detrimental to the public interest, but no such extensions shall extend beyond 

a date five years after the date on which such shares were acquired;

“ (3) shares acquired by such bank holding company from any of its subsidiaries which subsidiary has been requested to dispose of such shares by 

any Federal or State authority having statutory power to examine such subsidiary, but such bank holding company shall dispose of such shares within 

a period of two years from the date on which they were acquired;

“ (4) shares held or acquired by a bank in good faith in a fiduciary capacity, 

except where such shares are held under a trust that constitutes a company 

as defined in section 2(b) and except as provided in paragraphs (2) and (3) of 

section 2(g);

“ (5) shares which are of the kinds and amounts eligible for investment by 

national banking associations under the provisions of section 5136 of the 

Revised Statutes;

“ (6) shares of any company which do not include more than 5 per centum 

of the outstanding voting shares of such company;

“ (7) shares of an investment company which is not a bank holding company 

and which is not engaged in any business other than investing in securities, 

which securities do not include more than 5 per centum of the outstanding 

voting shares of any company;

“ (8) shares of any company all the activities of which are or are to be of 

a financial, fiduciary, or insurance nature and which the Board after due notice 

and hearing, and on the basis of the record made at such hearing, by order 

has determined to be so closely related to the business of banking or of managing or controlling banks as to be a proper incident thereto and as to make 

it unnecessary for the prohibitions of this section to apply in order to carry out 

the purposes of this Act;

“ (9) shares of any company which is or is to be organized under the laws 

of a foreign country and which is or is to be engaged principally in the banking 

business outside the United States; or

“ (10) shares lawfully acquired and owned prior to May 9, 1956, by a bank 

which is a bank holding company, or by any of its wholly owned subsidiaries.”

(c) Section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843) is 

amended by adding at the end thereof the following new subsection:

“ (d) With respect to shares which were not subject to the prohibitions of this 

section as originally enacted by reason of any exemption with respect thereto 

but which were made subject to such prohibitions by the subsequent repeal of 

such exemption, no bank holding company shall retain direct or indirect ownership or control of such shares after five years from the date of the repeal of such 

exemption, except as provided in paragraph (2) of subsection (a). Any bank holding company subject to such five-year limitation on the retention of nonbanking 

assets shall endeavor to divest itself of such shares promptly and such bank 

holding company shall report its progress in such divestiture to the Board two 

years after repeal of the exemption applicable to it and annually thereafter.”

Sec. 9. Section 6 of the Bank Holding Company Act of 1956 (12 U.S.C. 1845) 

is hereby repealed.

Sec. 10. The first sentence of section 9 of the Bank Holding Company Act of 

1956 (12 U.S.C. 1848) is amended by striking out “ sixty” and inserting “ thirty” .

Sec. 11. Section 11 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841 

(note)) is amended by inserting “ (a)” after “ Sec. 11.” ; by inserting a comma and 

“ except as specifically provided in this section” before the period at the end 

thereof; and by adding at the end thereof the following new subsections:

“ (b) The Board shall immediately notify the Attorney General of any approval 

by it pursuant to this Act of a proposed acquisition, merger, or consolidation 

transaction, and such transaction may not be consummated before the thirtieth 

calendar day after the date of approval by the Board. Any action brought under 

the antitrust laws arising out of an acquisition, merger, or consolidation transaction shall be commenced within such thirty-day period. The commencement of 

such an action shall stay the effectiveness of the Board’s approval unless the

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
78 FEDERAL DEPOSIT INSURANCE CORPORATION

court shall otherwise specifically order. In any such action, the court shall review 

de novo the issues presented. In any judicial proceeding attacking any acquisition, merger, or consolidation transaction approved pursuant to this Act on the 

ground that such transaction alone and of itself constituted a violation of any 

antitrust laws other than section 2 of the Act of July 2, 1890 (section 2 of the 

Sherman Antitrust Act, 15 U.S.C. 2), the standards applied by the court shall be 

identical with those that the Board is directed to apply under section 3 of this Act. 

Upon the consummation of an acquisition, merger, or consolidation transaction 

in compliance with this Act and after the termination of any antitrust litigation 

commenced within the period prescribed in this section, or upon the termination 

of such period if no such litigation is commenced therein, the transaction may not 

thereafter be attacked in any judicial proceeding on the ground that it alone and 

of itself constituted a violation of any antitrust laws other than section 2 of the 

Act of July 2, 1890 (section 2 of the Sherman Antitrust Act, 15 U.S.C. 2), but 

nothing in this Act shall exempt any bank holding company involved in such a 

transaction from complying with the antitrust laws after the consummation of such 

transaction.

“ (c) In any action brought under the antitrust laws arising out of any acquisition, 

merger, or consolidation transaction approved by the Board pursuant to this Act, 

the Board and any State banking supervisory agency having jurisdiction within 

the State involved, may appear as a party of its own motion and as of right, and be 

represented by its counsel.

“ (d) Any acquisition, merger, or consolidation of the kind described in section 

3(a) of this Act which was consummated at any time prior or subsequent to 

May 9, 1956, and as to which no litigation was initiated by the Attorney General 

prior to the date of enactment of this amendment, shall be conclusively presumed 

not to have been in violation of any antitrust laws other than section 2 of the Act 

of July 2, 1890 (section 2 of the Sherman Antitrust Act, 15 U.S.C. 2).

“ (e) Any court having pending before it on or after the date of enactment of 

this amendment any litigation initiated under the antitrust laws by the Attorney 

General with respect to any acquisition, merger, or consolidation of the kind 

described in section 3(a) of this Act shall apply the substantive rule of law set 

forth in section 3 of this Act.

“ (f) For the purposes of this section, the term ‘antitrust laws’ means the Act of 

July 2, 1890 (the Sherman Antitrust Act, 15 U.S.C. 1-7), the Act of October 15, 

1914 (the Clayton Act, 15 U.S.C. 12-27), and any other Acts in pari materia.”

Sec. 12. (a) Section 23A of the Federal Reserve Act, as amended (12 U.S.C. 

371c), is amended by adding at the end thereof the following new paragraphs:

“ For the purposes of this section, (1) the term ‘extension of credit’ and 

‘extensions of credit’ shall be deemed to include (A) any purchase of securities, 

other assets or obligations under repurchase agreement, and (B) the discount 

of promissory notes, bills of exchange, conditional sales contracts, or similar 

paper, whether with or without recourse, except that the acquisition of such paper 

by a member bank from another bank, without recourse, shall not be deemed to 

be a ‘discount’ by such member bank for such other bank; and (2) non-interestbearing deposits to the credit of a bank shall not be deemed to be a loan or 

advance or extension of credit to the bank of deposit, nor shall the giving of 

immediate credit to a bank upon uncollected items received in the ordinary 

course of business be deemed to be a loan or advance or extension of credit 

to the depositing bank.

“ For the purposes of this section, the term ‘affiliate’ shall include, with respect 

to any member bank, any bank holding company of which such member bank is 

a subsidiary within the meaning of the Bank Holding Company Act of 1956, as 

amended, and any other subsidiary of such company.

“ The provisions of this section shall not apply to (1) stock, bonds, debentures, 

or other obligations of any company of the kinds described in section 4(c)(1) of 

the Bank Holding Company Act of 1956, as amended; (2) stock, bonds, debentures, or other obligations accepted as security for debts previously contracted, 

provided that such collateral shall not be held for a period of over two years; 

(3) shares which are of the kinds and amounts eligible for investment by national

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL BANKING LEGISLATION— 1966 79

banks under the provisions of section 5136 of the Revised Statutes; (4) any 

extension of credit by a member bank to a bank holding company of which such 

bank is a subsidiary or to another subsidiary of such bank holding company, if 

made within one year after the effective date of this amendment to section 23A 

and pursuant to a contract lawfully entered into prior to January 1, 1966; or

(5) any transaction by a member bank with another bank the deposits of which 

are insured by the Federal Deposit Insurance Corporation, if more than 50 per 

centum of the voting stock of such other bank is owned by the member bank or 

held by trustees for the benefit of the shareholders of the member bank.”

(b) Section 25 of the Federal Reserve Act, as amended (12 U.S.C. 601), is 

amended by striking out “ either or both of” immediately preceding “ the following 

powers” in the introductory paragraph and by inserting after the paragraph designated “ Second.” the following new paragraph:

“ Third. To acquire and hold, directly or indirectly, stock or other evidences of 

ownership in one or more banks organized under the law of a foreign country 

or a dependency or insular possession of the United States and not engaged, 

directly or indirectly, in any activity in the United States except as, in the judgment 

of the Board of Governors of the Federal Reserve System, shall be incidental to 

the international or foreign business of such foreign bank; and, notwithstanding 

the provisions of section 23A of this Act, to make loans or extensions of credit 

to or for the account of such bank in the manner and within the limits prescribed 

by the Board by general or specific regulation or ruling.”

(c) Section 18 of the Federal Deposit Insurance Act, as amended (12 U.S.C. 

1828), is further amended by adding at the end thereof the following new 

subsection:

“ (j) The provisions of section 23A of the Federal Reserve Act, as amended, 

relating to loans and other dealings between member banks and their affiliates, 

shall be applicable to every nonmember insured bank in the same manner and to 

the same extent as if such nonmember insured bank were a member bank; and 

for this purpose any company which would be an affiliate of a nonmember 

insured bank, within the meaning of section 2 of the Banking Act of 1933, as 

amended, and for the purposes of section 23A of the Federal Reserve Act, if such 

bank were a member bank shall be deemed to be an affiliate of such nonmember 

insured bank.”

Sec. 13. (a) Subsection (b) of section 2 of the Banking Act of 1933, as amended 

(12 U.S.C. 221a), is further amended by inserting before the period at the end 

thereof the following: “ ; or

“ (4) Which owns or controls, directly or indirectly, either a majority of the 

shares of capital stock of a member bank or more than 50 per centum of the 

number of shares voted for the election of directors of a member bank at the preceding election, or controls in any manner the election of a majority of the directors of a member bank, or for the benefit of whose shareholders or members 

all or substantially all the capital stock of a member bank is held by trustees” .

(b) Subsection (c) of section 2 of the Banking Act of 1933, as amended (12 

U.S.C. 221a), is repealed.

(c) Section 5144 of the Revised Statutes, as amended (12 U.S.C. 61), is amended 

to read as follows:

“ Sec. 5144. In all elections of directors, each shareholder shall have the right 

to vote the number of shares owned by him for as many persons as there are 

directors to be elected, or to cumulate such shares and give one candidate as 

many votes as the number of directors multiplied by the number of his shares 

shall equal, or to distribute them on the same principle among as many candidates 

as he shall think fit; and in deciding all other questions at meetings of shareholders, each shareholder shall be entitled to one vote on each share of stock 

held by him; except that (1) this shall not be construed as limiting the voting 

rights of holders of preferred stock under the terms and provisions of articles 

of association, or amendments thereto, adopted pursuant to the provisions of 

section 302(a) of the Emergency Banking and Bank Conservation Act, approved

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
80 FEDERAL DEPOSIT INSURANCE CORPORATION

March 9, 1933, as amended; (2) in the election of directors, shares of its own 

stock held by a national bank as sole trustee, whether registered in its own name 

as such trustee or in the name of its nominee, shall not be voted by the registered 

owner unless under the terms of the trust the manner in which such shares shall 

be voted may be determined by a donor or beneficiary of the trust and unless 

such donor or beneficiary actually directs how such shares shall be voted; and 

(3) shares of its own stock held by a national bank and one or more persons as 

trustees may be voted by such other person or persons, as trustees, in the same 

manner as if he or they were the sole trustee. Shareholders may vote by proxies 

duly authorized in writing; but no officer, clerk, teller, or bookkeeper of such bank 

shall act as proxy; and no shareholder whose liability is past due and unpaid 

shall be allowed to vote. Whenever shares of stock cannot be voted by reason 

of being held by the bank as sole trustee such shares shall be excluded in determining whether matters voted upon by the shareholders were adopted by the 

requisite percentage of shares.”

(d) Paragraph (c) of section 5211 of the Revised Statutes (12 U.S.C. 161) 

is amended by striking out the second sentence thereof.

(e) The last sentence of the sixteenth paragraph of section 4 of the Federal 

Reserve Act, as amended (12 U.S.C. 304), is amended by striking out all of the 

language therein which follows the colon and by inserting in lieu thereof the 

following: “ Provided, That whenever any member banks within the same Federal 

Reserve district are subsidiaries of the same bank holding company within the 

meaning of the Bank Holding Company Act of 1956, participation in any such 

nomination or election by such member banks, including such bank holding 

company if it is also a member bank, shall be confined to one of such banks, 

which may be designated for the purpose by such holding company.”

(f) The nineteenth paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 

334) is amended by striking out the last sentence of such paragraph.

(g) The twenty-second paragraph of section 9 of the Federal Reserve Act (12 

U.S.C. 337) is repealed.

(h) The third paragraph of section 23A of the Federal Reserve Act (12 U.S.C. 

371c) is amended by striking out that part of the first sentence that reads “ For 

the purpose of this section, the term ‘affiliate’ shall include holding company 

affiliates as well as other affiliates, and” ; and by changing the word “ the” following such language to read “ The” .

(i) Paragraph (4) of section 3(c) of the Investment Company Act of 1940 (15 

U.S.C. 80a-3) is repealed.

(j) Paragraph (11) of section 202(a) of the Investment Advisers Act of 1940 

(15 U.S.C. 80b-2) is amended by striking out the words “ or any holding company 

affiliate, as defined in the Banking Act of 1933” and substituting therefor the words 

“ or any bank holding company as defined in the Bank Holding Company Act 

of 1956” .

Approved July 1, 1966.

Public Law 89-597 

89th Congress, H. R. 14026 

September 21, 1966

AN ACT

To provide for the more flexible regulation of maximum rates of interest or

dividends payable by banks and certain other financial institutions on deposits

or share accounts, to authorize higher reserve requirements on time deposits

at member banks, to authorize open market operations in agency issues by the

Federal Reserve Banks, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled,

Section 1. The Secretary of the Treasury, the Board of Governors of the Federal 

Reserve System, the Board of Directors of the Federal Deposit Insurance CorDigitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL BANKING LEGISLATION— 1966 81

poration, and the Federal Home Loan Bank Board, in implementation of their 

respective powers under existing law and this Act, shall take action to bring 

about the reduction of interest rates to the maximum extent feasible in the light 

of prevailing money market and general economic conditions.

RESERVES AND RATE CEILINGS— MEMBER BANKS

Sec. 2. (a) Section 19 of the Federal Reserve Act is amended by striking the 

first six paragraphs (12 U.S.C. 461, 462, and 462b) and inserting:

“ (a) The Board is authorized for the purposes of this section to define the terms 

used in this section, to determine what shall be deemed a payment of interest, 

and to prescribe such regulations as it may deem necessary to effectuate the 

purposes of this section and to prevent evasions thereof.

“ (b) Every member bank shall maintain reserves against its deposits in such 

ratios as shall be determined by the affirmative vote of not less than four members 

of the Board within the following limitations:

“ (1) In the case of any member bank in a reserve city, the minimum reserve 

ratio for any demand deposit shall be not less than 10 per centum and not 

more than 22 per centum, except that the Board, either in individual cases or 

by regulation, on such basis as it may deem reasonable and appropriate in 

view of the character of business transacted by such bank, may make applicable 

the reserve ratios prescribed for banks not in reserve cities.

“ (2) In the case of any member bank not in a reserve city, the minimum reserve ratio for any demand deposit shall be not less than 7 per centum and 

not more than 14 per centum.

“ (3) In the case of any deposit other than a demand deposit, the minimum 

reserve ratio shall be not less than 3 per centum and not more than 10 

per centum.

“ (c) Reserves held by any member bank to meet the requirements imposed 

pursuant to subsection (b) of this section shall be in the form of—

“ (1) balances maintained for such purpose by such bank in the Federal 

Reserve bank of which it is a member, and

“ (2) the currency and coin held by such bank, or such part thereof as the 

Board may by regulation prescribe.”

(b) The paragraphs which, prior to the amendments made by this Act, were the 

seventh (12 U.S.C. 374a), eighth (12 U.S.C. 374, 463), ninth (12 U.S.C. 464), tenth 

(12 U.S.C. 465), eleventh (12 U.S.C. 466), twelfth (12 U.S.C. 371a), and thirteenth 

(12 U.S.C. 371b) paragraphs of section 19 of the Federal Reserve Act are respectively redesignated as subsections (d), (e), (f), (g), (h), (i), and (j) of that 

section.

(c) Such section is further amended by striking the first sentence of subsection 

(j) as redesignated (12 U.S.C. 371) and inserting: “ The Board may from time to 

time, after consulting with the Board of Directors of the Federal Deposit Insurance 

Corporation and the Federal Home Loan Bank Board, limit by regulation the rates 

of interest which may be paid by member banks on time and savings deposits. 

The Board may prescribe different rate limitations for different classes of deposits, 

for deposits of different amounts or with different maturities or subject to different 

conditions regarding withdrawal or repayment, according to the nature or location 

of member banks or their depositors, or according to such other reasonable 

bases as the Board may deem desirable in the public interest.”

(d) The last paragraph of such section (12 U.S.C. 462a-1) and the proviso in 

section 8 of the Second Liberty Bond Act (31 U.S.C. 771) are repealed.

RATE CEILINGS— INSURED NONMEMBER BANKS

Sec. 3. The second and third sentences of section 18(g) of the Federal Deposit 

Insurance Act (12 U.S.C. 1828(g)) are amended to read as follows: “ The Board of 

Directors may from time to time, after consulting with the Board of Governors 

of the Federal Reserve System and the Federal Home Loan Bank Board, limit by 

regulation the rates of interest or dividends that may be paid by insured nonDigitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
82 FEDERAL DEPOSIT INSURANCE CORPORATION

member banks (including insured mutual savings banks) on time and savings 

deposits. The Board of Directors may prescribe different rate limitations for different classes of deposits, for deposits of different amounts or with different 

maturities or subject to different conditions regarding withdrawal or repayment, 

according to the nature or location of insured nonmember banks or their depositors, or according to such other reasonable bases as the Board of Directors 

may deem desirable in the public interest.”

RATE CEILINGS— SAVINGS AND LOAN ASSOCIATIONS

Sec. 4. The Federal Home Loan Bank Act is amended by adding after section 

5A thereof (12 U.S.C. 1425a) the following new section:

“ Sec. 5B. The Board may from time to time, after consulting with the Board of 

Governors of the Federal Reserve System and the Board of Directors of the 

Federal Deposit Insurance Corporation, limit by regulation the rates of interest 

or dividends on deposits, shares, or withdrawable accounts that may be paid by 

members, other than those the deposits of which are insured in accordance with 

the provisions of the Federal Deposit Insurance Act, and by institutions which are 

insured institutions as defined in section 401(a) of the National Housing Act. The 

Board may prescribe different rate limitations for different classes of deposits, 

shares, or withdrawable accounts, for deposits, shares, or withdrawable accounts 

of different amounts or with different maturities or subject to different conditions 

regarding withdrawal or repayment, according to the nature or location of such 

members or institutions or their depositors, shareholders, or withdrawable accountholders, or according to such other reasonable bases as the Board may deem 

desirable in the public interest.”

OUTSTANDING RATE REGULATIONS

Sec. 5. Any regulation prescribed by the Board of Governors of the Federal 

Reserve System or the Board of Directors of the Federal Deposit Insurance Corporation with respect to the payment of deposits and interest thereon by members 

banks or insured nonmember banks which is in effect when this Act is enacted 

shall continue in effect unless and until it is modified or rescinded after consultatation with the Board of Directors or the Board of Governors, as the case may be, 

and the Federal Home Loan Bank Board.

OPEN MARKET OPERATIONS

Sec. 6. Section 14(b) of the Federal Reserve Act (12 U.S.C. 355) is amended by 

inserting “ (1)” immediately after “ (b)” and by adding the following new paragraph at the end:

“ (2) To buy and sell in the open market, under the direction and regulations of 

the Federal Open Market Committee, any obligation which is a direct obligation 

of, or fully guaranteed as to principal and interest by, any agency of the United 

States.”

Sec. 7. The provisions of the preceding sections of this Act shall be effective 

only during the one-year period which begins on the date of enactment of this 

Act. Upon the expiration of such period, each provision of law amended by this 

Act is further amended to read as it did immediately prior to the enactment of 

this Act.

Approved September 21, 1966.

Public Law 89-695 

89th Congress, S. 3158 

October 16, 1966

AN ACT

To strengthen the regulatory and supervisory authority of Federal agencies over

insured banks and insured savings and loan associations, and for other purposes.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL BANKING LEGISLATION— 1966 83

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That this Act may be cited as the “ Financial 

Institutions Supervisory Act of 1966” .

TITLE I— PROVISIONS RELATING TO THE FEDERAL HOME LOAN BANK BOARD 

AND THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION

Sec. 101. (a) Subsection (d) of section 5 of the Home Owners’ Loan Act of 1933 

(12 U.S.C. 1464(d)) is hereby amended to read as follows:

“ (d)(1) The Board shall have power to enforce this section and rules and regulations made hereunder. In the enforcement of any provision of this section or 

rules and regulations made hereunder, or any other law or regulation, or in any 

ether action, suit, or proceeding to which it is a party or in which it is interested, 

and in the administration of conservatorships and receiverships, the Board is 

authorized to act in its own name and through its own attorneys. Except as 

otherwise provided herein, the Board shall be subject to suit (other than suits 

on claims for money damages) by any Federal savings and loan association or 

director or officer thereof with respect to any matter under this section or any 

other applicable law, or rules or regulations thereunder, in the United States 

district court for the judicial district in which the home office of the association 

is located, or in the United States District Court for the District of Columbia, and 

the Board may be served with process in the manner prescribed by the Federal 

Rules of Civil Procedure.

“ (2)(A) If, in the opinion of the Board, an association is violating or has 

violated, or the Board has reasonable cause to believe that the association is 

about to violate, a law, rule, regulation, or charter or other condition imposed in 

writing by the Board in connection with the granting of any application or other 

request by the association, or written agreement entered into with the Board, 

or is engaging or has engaged, or the Board has reasonable cause to believe 

that the association is about to engage, in an unsafe or unsound practice, the 

Board may issue and serve upon the association a notice of charges in respect 

thereof. The notice shall contain a statement of the facts constituting the alleged 

violation or violations or the unsafe or unsound practice or practices, and shall 

fix a time and place at which a hearing will be held to determine whether an 

order to cease and desist therefrom should issue against the association. Such 

hearing shall be fixed for a date not earlier than thirty days nor later than sixty 

days after service of such notice unless an earlier or a later date is set by the 

Board at the request of the association. Unless the association shall appear at 

the hearing by a duly authorized representative, it shall be deemed to have consented to the issuance of the cease-and-desist order. In the event of such consent, or if upon the record made at any such hearing the Board shall find that 

any violation or unsafe or unsound practice specified in the notice of charges 

has been established, the Board may issue and serve upon the association an 

order to cease and desist from any such violation or practice. Such order may, 

by provisions which may be mandatory or otherwise, require the association and 

its directors, officers, employees, and agents to cease and desist from the same, 

and, further, to take affirmative action to correct the conditions resulting from 

any such violation or practice.

“ (B) A cease-and-desist order shall become effective at the expiration of thirty 

days after service of such order upon the association concerned (except in the 

case of a cease-and-desist order issued upon consent, which shall become 

effective at the time specified therein), and shall remain effective and enforceable, 

except to such extent as it is stayed, modified, terminated, or set aside by action 

of the Board or a reviewing court.

“ (3)(A) Whenever the Board shall determine that the violation or threatened 

violation or the unsafe or unsound practice or practices, specified in the notice 

of charges served upon the association pursuant to paragraph (2)(A) of this 

subsection, or the continuation thereof, is likely to cause insolvency (as defined 

in paragraph (6)(A)(i) of this subsection) or substantial dissipation of assets or 

earnings of the association, or is likely to otherwise seriously prejudice the

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
84 FEDERAL DEPOSIT INSURANCE CORPORATION

interests of its savings account holders, the Board may issue a temporary order 

requiring the association to cease and desist from any such violation or practice. 

Such order shall become effective upon service upon the association and, unless 

set aside, limited, or suspended by a court in proceedings authorized by subparagraph (B) of this paragraph, shall remain effective and enforceable pending 

the completion of the administrative proceedings pursuant to such notice and 

until such time as the Board shall dismiss the charges specified in such notice or, 

if a cease-and-desist order is issued against the association, until the effective 

date of any such order.

“ (B) Within ten days after the association concerned has been served with a 

temporary cease-and-desist order, the association may apply to the United States 

district court for the judicial district in which the home office of the association is 

located, or the United States District Court for the District of Columbia, for an 

injunction setting aside, limiting, or suspending the enforcement, operation, or 

effectiveness of such order pending the completion of the administrative proceedings pursuant to the notice of charges served upon the association under paragraph (2)(A) of this subsection, and such court shall have jurisdiction to issue 

such injunction.

“ (C) In the case of violation or threatened violation of, or failure to obey, a 

temporary cease-and-desist order, the Board may apply to the United States district court, or the United States court of any territory, within the jurisdiction of 

which the home office of the association is located, for an injunction to enforce 

such order, and, if the court shall determine that there has been such violation or 

threatened violation or failure to obey, it shall be the duty of the court to issue 

such injunction.

“ (4)(A) Whenever, in the opinion of the Board, any director or officer of an 

association has committed any violation of law, rule, or regulation, or of a ceaseand-desist order which has become final, or has engaged or participated in any 

unsafe or unsound practice in connection with the association, or has committed 

or engaged in any act, omission, or practice which constitutes a breach of his 

fiduciary duty as such director or officer, and the Board determines that the 

association has suffered or will probably suffer substantial financial loss or 

ether damage or that the interests of its savings account holders could be seriously prejudiced by reason of such violation or practice or breach of fiduciary 

duty, and that such violation or practice or breach of fiduciary duty is one involving personal dishonesty on the part of such director or officer, the Board may 

serve upon such director or officer a written notice of its intention to remove him 

from office.

“ (B) Whenever, in the opinion of the Board, any director or officer of an 

association, by conduct or practice with respect to another savings and loan 

association or other business institution which resulted in substantial financial 

loss or other damage, has evidenced his personal dishonesty and unfitness to 

continue as a director or officer, and, whenever, in the opinion of the Board, any 

other person participating in the conduct of the affairs of an association, by conduct or practice with respect to such association or other savings and loan 

association or other business institution which resulted in substantial financial 

loss or other damage, has evidenced his personal dishonesty and unfitness to 

participate in the conduct of the affairs of such association, the Board may serve 

upon such director, officer, or other person a written notice of its intention to 

remove him from office and/or to prohibit his further participation in any manner 

in the conduct of the affairs of such association.

“ (C) In respect to any director or officer of an association or any other person 

referred to in subparagraph (A) or (B) of this paragraph, the Board may, if it 

deems it necesssary for the protection of the association or the interests of its 

savings account holders, by written notice to such effect served upon such 

director, officer, or other person, suspend him from office and/or prohibit him 

from further participation in any manner in the conduct of the affairs of the association. Such suspension and/or prohibition shall become effective upon service 

of such notice and, unless stayed by a court in proceedings authorized by subDigitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL BANKING LEGISLATION— 1966 85

paragraph (E) of this paragraph, shall remain in effect pending the completion of 

the administrative proceedings pursuant to the notice served under subparagraph

(A) or (B) of this paragraph and until such time as the Board shall dismiss the 

charges specified in such notice, or, if an order of removal and/or prohibition is 

issued against the director or officer or other person, until the effective date of 

any such order. Copies of any such notice shall also be served upon the association of which he is a director or officer or in the conduct of whose affairs he has 

participated.

“ (D) A notice of intention to remove a director, officer, or other person from 

office and/or to prohibit his participation in the conduct of the affairs of an association, shall contain a statement of the facts constituting grounds therefor, and 

shall fix a time and place at which a hearing will be held thereon. Such hearing 

shall be fixed for a date not earlier than thirty days nor later than sixty days after 

the date of service of such notice, unless an earlier or a later date is set by 

the Board at the request of (i) such director, officer, or other person, and for 

good cause shown, or (ii) the Attorney General of the United States. Unless such 

director, officer, or other person shali appear at the hearing in person or by a 

duly authorized representative, he shall be deemed to have consented to the 

issuance of an order of such removal and/or prohibition. In the event of such 

consent, or if upon the record made at any such hearing the Board shall find 

that any of the grounds specified in such notice has been established, the Board 

may issue such orders of suspension or removal from office, and/or prohibition 

from participation in the conduct of the affairs of the association, as it may deem 

appropriate. Any such order shall become effective at the expiration of thirty days 

after service upon such association and the director, officer, or other person 

concerned (except in the case of an order issued upon consent, which shall 

become effective at the time specified therein). Such order shall remain effective 

and enforceable except to such extent as it is stayed, modified, terminated, or 

set aside by action of the Board or a reviewing court.

“ (E) Within ten days after any director, officer, or other person has been suspended from office and/or prohibited from participation in the conduct of the 

affairs of an association under subparagraph (C) of this paragraph, such director, 

officer, or other person may apply to the United States district court for the 

judicial district in which the home office of the association is located, or the United 

States District Court for the District of Columbia, for a stay of such suspension 

and/or prohibition pending the completion of the administrative proceedings pursuant to the notice served upon such director, officer, or other person under 

subparagraph (A) or (B) of this paragraph, and such court shall have jurisdiction 

to stay such suspension and/or prohibition.

“ (5)(A) Whenever any director or officer of an association, or other person participating in the conduct of the affairs of such association, is charged in any 

information, indictment, or complaint authorized by a United States Attorney, 

with the commission of or participation in a felony involving dishonesty or breach 

of trust, the Board may, by written notice served upon such director, officer, or 

other person, suspend him from office and/or prohibit him from further participation in any manner in the conduct of the affairs of the association, A copy of 

such notice shall also be served upon the association. Such suspenson and/or 

prohibition shall remain in effect until such information, indictment, or complaint is finally disposed of or until terminated by the Board. In the event 

that a judgment of conviction with respect to such offense is entered against such 

director, officer, or other person, and at such time as such judgment is not subject 

to further appellate review, the Board may issue and serve upon such director, 

officer, or other person an order removing him from office and/or prohibiting him 

from further participation in any manner in the conduct of the affairs of the association except with the consent of the Board. A copy of such order shall be served 

upon such association, whereupon such director or officer shall cease to be a 

director or officer of such association. A finding of not guilty or other disposition 

of the charge shall not preclude the Board from thereafter instituting proceedings 

to remove such director, officer, or other person from office and/or to prohibit

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
86 FEDERAL DEPOSIT INSURANCE CORPORATION

further participation in association affairs, pursuant to subparagraph (A) or (B) 

of paragraph (4) of this subsection.

“ (B) if at any time, because of the suspension of one or more directors pursuant to this subsection (d), there shall be on the board of directors of an association less than a quorum of directors not so suspended, all powers and functions 

vested in or exercisable by such board shall vest in and be exercisable by the 

director or directors on the board and not so suspended, until such time as there 

shall be a quorum of the board of directors. In the event all of the directors of 

an association are suspended pursuant to this subsection (d), the Board shall 

appoint persons to serve temporarily as directors in their place and stead pending 

the termination of such suspensions, or until such time as those who have been 

suspended cease to be directors of the association and their respective successors take office.

“ (6)(A) The grounds for the appointment of a conservator or receiver for an 

association shall be one or more of the following: (i) insolvency in that the assets 

of the association are less than its obligations to its creditors and others, including its members; (ii) substantial dissipation of assets or earnings due to any 

violation or violations of law, rules, or regulations, or to any unsafe or unsound 

practice or practices; (iii) an unsafe or unsound conditon to transact business; 

(iv) willful violation of a cease-and-desist order which has become final; (v) concealment of books, papers, records, or assets of the association or refusal to 

submit books, papers, records, or affairs of the association for inspection to any 

examiner or to any lawful agent of the Board. The Board shall have exclusive 

power and jurisdiction to appoint a conservator or receiver. If, in the opinion of 

the Board, a ground for the appointment of a conservator or receiver as herein 

provided exists, the Board is authorized to appoint ex parte and without notice 

a conservator or receiver for the association. In the event of such appointment, 

the association may, within thirty days thereafter, bring an action in the United States 

district court for the judicial district in which the home office of such association 

is located, or in the United States District Court for the District of Columbia, for 

an order requiring the Board to remove such conservator or receiver, and the 

court shall upon the merits dismiss such action or direct the Board to remove 

such conservator or receiver. Such proceedings shall be given precedence over 

other cases pending in such courts, and shall be in every way expedited. Upon 

the commencement of such an action, the court having jurisdiction of any other 

action or proceeding authorized under this subsection to which the association 

is a party shall stay such action or proceeding during the pendency of the 

action for removal of the conservator or receiver.

“ (B) In addition to the foregoing provisions, the Board may, without any requirement of notice, hearing, or other action, appoint a conservator or receiver for an 

association in the event that (i) the association, by resolution of its board of 

directors or of its members, consents to such appointment, or (ii) the association is removed from membership in any Federal home loan bank, or its status 

as an institution the accounts of which are insured by the Federal Savings and 

Loan Insurance Corporation is terminated.

“ (C) Except as otherwise provided in this subsection, no court may take any 

action for or toward the removal of any conservator or receiver, or, except at the 

instance of the Board, restrain or affect the exercise of powers or functions of a 

conservator or receiver.

“ (D) A conservator shall have all the powers of the members, the directors, and 

the officers of the association and shall be authorized to operate the association 

in its own name or to conserve its assets in the manner and to the extent authorized by the Board. The Board shall appoint only the Federal Savings and Loan 

Insurance Corporation as receiver for an association, and said Corporation shall 

have power to buy at its own sale as receiver, subject to approval by the Board. 

The Board may, without any requirement of notice, hearing, or other action, 

replace a conservator with another conservator or with a receiver, but any such 

replacement shall not affect any right which the association may have to obtain 

judicial review of the original appointment, except that any removal under this

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL BANKING LEGISLATION— 1966 87

paragraph (6) shall be removal of the conservator or receiver in office at the time 

of such removal.

“ (7)(A) Any hearing provided for in this subsection (d) shall be held in the 

Federal judicial district or in the territory in which the home office of the association is located unless the party afforded the hearing consents to another place, 

and shall be conducted in accordance with the provisions of chapter 5 of title 5 

of the United States Code. Such hearing shall be private, unless the Board, in its 

discretion, after fully considering the views of the party afforded the hearing, 

determines that a public hearing is necessary to protect the public interest. After 

such hearing, and within ninety days after the Board has notified the parties that 

the case has been submitted to it for final decision, the Board shall render its 

decision (which shall include findings of fact upon which its decision is predicated) 

and shall issue and cause to be served upon each party to the proceeding an 

order or orders consistent with the provisions of this subsection. Judicial review 

of any such order shall be exclusively as provided in this paragraph (7). Unless 

a petition for review is timely filed in a court of appeals of the United States, as 

hereinafter provided in subparagraph (B) of this paragraph, and thereafter until 

the record in the proceeding has been filed as so provided, the Board may at any 

time, upon’such notice and in such manner as it shall deem proper, modify, terminate, or set aside any such order. Upon such filing of the record, the Board may 

modify, terminate, or set aside any such order with permission of the court.

“ (B) Any party to the proceeding, or any person required by an order issued 

under this subsection to cease and desist from any of the violations or practices 

stated therein, may obtain a review of any order served pursuant to subparagraph

(A) of this paragraph (other than an order issued with the consent of the association or the director or officer or other person concerned, or an order issued under 

paragraph (5)(A) of this subsection), by filing in the court of appeals of the United 

States for the circuit in which the home office of the association is located, or in 

the United States Court of Appeals for the District of Columbia Circuit, within 

thirty days after the date of service of such order, a written petition praying that 

the order of the Board be modified, terminated, or set aside. A copy of such 

petition shall be forthwith transmitted by the clerk of the court to the Board, and 

thereupon the Board shall file in the court the record in the proceeding, as provided in section 2112 of title 28 of the United States Code. Upon the filing of such 

petition, such court shall have jurisdiction, which upon the filing of the record 

shall except as provided in the last sentence of said subparagraph (A) be exclusive, to affirm, modify, terminate, or set aside, in whole or in part, the order of 

the Board. Review of such proceedings shall be had as provided in chapter 7 of 

title 5 of the United States Code. The judgment and decree of the court shall be 

final, except that the same shall be subject to review by the Supreme Court upon 

certiorari as provided in section 1254 of title 28 of the United States Code.

“ (C) The commencement of proceedings for judicial review under subparagraph

(B) of this paragraph shall not, unless specifically ordered by the court, operate 

as a stay of any order issued by the Board.

“ (8) The Board may in its discretion apply to the United States district court, 

or the United States court of any territory, within the jurisdiction of which the 

home office of the association is located, for the enforcement of any effective and 

outstanding notice or order issued by the Board under this subsection (d), and 

such courts shall have jurisdiction and power to order and require compliance 

therewith; but except as otherwise provided in this subsection no court shall have 

jurisdiction to affect by injunction or otherwise the issuance or enforcement of 

any notice or order under this subsection, or to review, modify, suspend, terminate, 

or set aside any such notice or order. Any court having jurisdiction of any proceeding instituted under this subsection by an association or a director or officer 

thereof, may allow to any such party such reasonable expenses and attorneys’ 

fees as it deems just and proper; and such expenses and fees shall be paid by 

the association or from its assets.

“ (9) In the course of or in connection with any proceeding under this subsection, the Board or any member thereof or a designated representative of the Board, 

including any person designated to conduct any hearing under this subsection,

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
88 FEDERAL DEPOSIT INSURANCE CORPORATION

shall have power to administer oaths and affirmations, to take or cause to be 

taken depositions, and to issue, revoke, quash, or modify subpenas and subpenas 

duces tecum; and the Board is empowered to make rules and regulations with 

respect to any such proceedings. The attendance of witnesses and the production 

of documents provided for in this paragraph may be required from any place in 

any State or in any territory at any designated place where such proceeding is 

being conducted. Any party to proceedings under this subsection may apply to 

the United States District Court for the District of Columbia, or the United States 

district court for the judicial district or the United States court in any territory in 

which such proceeding is being conducted or where the witness resides or carries 

on business, for enforcement of any subpena or subpena ddces tecum issued 

pursuant to this paragraph, and such courts shall have jurisdiction and power to 

order and require compliance therewith. Witnesses subpenaed under this paragraph shall be paid the same fees and mileage that are paid witnesses in the 

district courts of the United States. All expenses of the Board or of the Federal 

Savings and Loan Insurance Corporation in connection with this subsection shall 

be considered as nonadministrative expenses.

“ (10) Any service required or authorized to be made by the Board under this 

subsection may be made by registered mail, or in such other manner reasonably 

calculated to give actual notice as the Board may by regulation or otherwise 

provide.

“ (11) The Board shall have power to make rules and regulations for the reorganization, consolidation, liquidation, and dissolution of associations, for the 

merger of associations with other institutions the accounts of which are insured 

by the Federal Savings and Loan Insurance Corporation, for associations in conservatorship and receivership, and for the conduct of conservatorships and receiverships; and the Board may, by regulation or otherwise, provide for the exercise of functions by members, directors, or officers of an association during 

conservatorship and receivership.

“ (12)(A) Any director or officer, or former director or officer, of an association, 

or any other person, against whom there is outstanding and effective any notice 

or order (which is an order which has become final) served upon such director, 

officer, or other person under paragraph (4)(C), (4)(D), or (5)(A) of this subsection, 

and who (i) participates in any manner in the conduct of the affairs of such association, or directly or indirectly solicits or procures, or transfers or attempts to 

transfer, or votes or attempts to vote any proxies, consents, or authorizations in 

respect of any voting rights in such association, or (ii) without the prior written 

approval of the Board, votes for a director or serves or acts as a director, officer, 

or employee of any institution the accounts of which are insured by the Federal 

Savings and Loan Insurance Corporation, shall upon conviction be fined not more 

than $5,000 or imprisoned for not more than one year, or both.

“ (B) Except with the prior written consent of the Board, no person shall serve 

as a director, officer, or employee of an association who has been convicted, or 

who is hereafter convicted, of a criminal offense involving dishonesty or a breach 

of trust. For each willful violation of this prohibition, the association involved 

shall be subject to a penalty of not more than $100 for each day this prohibition 

is violated, which the Board may recover by suit or otherwise for its own use.

“ (C) Whenever a conservator or receiver appointed by the Board demands 

possession of the property, business, and assets of any association, or of any part 

thereof, the refusal by any director, officer, employee, or agent of such association 

to comply with the demand shall be punishable by a fine of not more than $5,000 

or imprisonment for not more than one year, or both.

“ (13)(A) As used in this subsection—

“ (1) The terms ‘cease-and-desist order which has become final’ and ‘order 

which has become final’ mean a cease-and-desist order, or an order, issued by the 

Board with the consent of the association or the director or officer or other person 

concerned, or with respect to which no petition for review of the action of the 

Board has been filed and perfected in a court of appeals as specified in paragraph 

(7)(B) of this subsection, or with respect to which the action of the court in which

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL BANKING LEGISLATION— 1966 89

said petition is so filed is not subject to further review by the Supreme Court of 

the United States in proceedings provided for in said paragraph, or an order 

issued under paragraph (5)(A) of this subsection.

“ (2) The term ‘State’ includes the Commonwealth of Puerto Rico.

“ (3) The term ‘territory’ includes any possession of the United States and any 

place subject to the jurisdiction of the United States.

“ (4) The terms ‘district’, ‘district court’, ‘district court of the United States’, 

and ‘judicial district’ shall have the meanings defined in section 451 of title 28 

of the United States Code.

“ (B) As used in paragraph (4) of this subsection, the term ‘violation’ includes 

without limitation any action (alone or with another or others) for or toward 

causing, bringing about, participating in, counseling, or aiding or abetting a 

violation.

“ (14) As used in this subsection, the terms ‘Federal savings and loan association’ and ‘association’ shall include any institution with respect to which the 

Federal Home Loan Bank Board now or hereafter has any statutory power of 

examination or supervision under any Act or joint resolution of Congress other 

than this Act, the Federal Home Loan Bank Act, and the National Housing Act. 

For the purposes of this paragraph (14), references in this subsection to directors, 

officers, employees, and agents, or to former directors or officers, of associations 

shall be deemed to be references respectively to directors, officers, employees, 

and agents, or to former directors or officers, of such institutions, references 

therein to savings account holders and to members of associations shall be 

deemed to be references to holders of withdrawable accounts in such institutions, 

and references therein to boards of directors of associations shall be deemed 

to be references to boards of directors or other governing boards of such institutions. Said Board shall have power by regulation to define, for the purposes of 

this paragraph (14), terms used or referred to in the sentence next preceding and 

other terms used in this subsection.”

(b) The amendment made by subsection (a) of this section shall be effective 

only with respect to proceedings commenced on or after the date of enactment 

of this Act. Section 5(d) of the Home Owners’ Loan Act of 1933 as in effect 

immediately prior to the date of enactment of this Act shall continue in effect with 

respect to any proceedings commenced prior to such date.

Sec. 102. (a) Section 407 of the National Housing Act (12 U.S.C. 1730) is hereby 

amended to read as follows:

“ Sec. 407. Termination of Insurance and Enforcement Provisions.—

“ (a) Voluntary Termination of Insurance.— Any insured institution other than a 

Federal savings and loan association may terminate its status as an insured 

institution by written notice to the Corporation specifying a date for such term ination.

“ (b) Involuntary Termination of Insurance; Notice and Hearing.— (1) Whenever, 

in the opinion of the Corporation, any insured institution has violated its duty as 

such or is engaging or has engaged in an unsafe or unsound practice in conducting the business of such institution, or is in an unsafe or unsound condition to 

continue operations as an insured institution, or is violating or has violated an 

applicable law, rule, regulation, or order, or any condition imposed in writing by 

the Corporation in connection with the granting of any application or other request 

by the institution, or any written agreement entered into with the Corporation, 

including any agreement entered into under section 403 of this title, the C o rp o ration shall serve upon the institution a statement with respect to such violations or 

practices or conditions for the purpose of securing the correction thereof, and 

shall send a copy of such statement to the appropriate State supervisory authority.

“ (2) Unless such correction shall be made within one hundred and twenty days 

after service of such statement, or such shorter period of not less than twenty 

days after such service as (A) the Corporation shall require in any case where the 

Corporation determines that its insurance risk with respect to such institution 

could be unduly jeopardized by further delay in the correction of such violations 

or practices or conditions, or (B) the appropriate State supervisory authority shall 

require, or unless within such time the Corporation shall have received acceptable

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
90 FEDERAL DEPOSIT INSURANCE CORPORATION

assurances that such correction will be made within a time and in a manner satisfactory to the Corporation, or in the event such assurances are submitted to and 

accepted by the Corporation but are not carried out in accordance with their 

terms, the Corporation may, if it shall determine to proceed further, issue and 

serve upon the institution written notice of intention to terminate the status of the 

institution as an insured institution.

“ (3) Such notice shall contain a statement of the facts constituting the alleged 

violation or violations or the unsafe or unsound practice or practices or condition, 

and shall fix a time and place for a hearing thereon. Such hearing shall be fixed 

for a date not earlier than thirty days after service of such notice. Unless the institution shall appear at the hearing by a duly authorized representative, it shall be 

deemed to have consented to the termination of its status as an insured institution. In the event of such consent, or if upon the record made at any such hearing 

the Corporation shall find that any violation or unsafe or unsound practice or condition specified in such notice has been established and has not been corrected 

within the time above prescribed in which to make correction, the Corporation 

may issue and serve upon the institution an order terminating the status of the 

institution as an insured institution; but any such order shall not become effective 

until it is an order which has become final (except in the case of an order of termination issued upon consent, which shall become effective at the time specified 

therein).

“ (c) Date of Termination of Insured Status.— The effective date of the termination of an institution’s status as an insured institution under the foregoing provisions of this section shall be the date specified for such termination in the notice 

by the institution to the Corporation as provided in subsection (a) of this section, 

or the date upon which an order of termination issued under subsection (b)(3) of 

this section becomes effective. The Corporation may from time to time postpone 

the effective date of the termination of an institution’s status as an insured institution at any time before such termination has become effective, but in the case 

of termination by notice given by the institution such effective date shall be postponed only with the written consent of the institution.

“ (d) Continuation of Insurance; Examination; Notice to Members; and Payment 

of Premiums.— In the event of the termination of an institution’s status as an insured institution, insurance of its accounts to the extent that they were insured on 

the effective date of such termination as hereinabove provided in subsection (c), 

less any amounts thereafter withdrawn, repurchased, or redeemed, shall continue 

for a period of two years, but no investments or deposits made after such date 

shall be insured. The Corporation shall have the right to examine such institution 

from time to time during the two-year period aforesaid. Such insured institution 

shall be obligated to pay, within thirty days after the effective date of such termination, as a final insurance premium, a sum equivalent to twice the last annual 

insurance premium payable by it. In the event of the termination of insurance of 

accounts as herein provided the institution which was the insured institution shall 

give prompt and reasonable notice to all of its insured members that it has ceased 

to be an insured institution and it may include in such notice the fact that insured 

accounts, to the extent not withdrawn, repurchased, or redeemed, remain insured 

for two years from the date of such termination, but it shall not further represent 

itself in any manner as an insured institution. In the event of failure to give the 

notice to insured members as herein provided the Corporation is authorized to 

give reasonable notice.

“ (e) Cease-and-Desist Proceedings.— (1) If, in the opinion of the Corporation, 

any insured institution or any institution any of the accounts of which are insured 

is engaging or has engaged, or the Corporation has reasonable cause to believe 

that the institution is about to engage, in an unsafe or unsound practice in conducting the business of such institution, or is violating or has violated, or the Corporation has reasonable cause to believe that the institution is about to violate, 

a law, rule, or regulation, or any condition imposed in writing by the Corporation 

in connection with the granting of any application or other request by the institution, or written agreement entered into with the Corporation, including any agreement entered into under section 403 of this title, the Corporation may issue and

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL BANKING LEGISLATION— 1966 91

serve upon the institution a notice of charges in respect thereof. The notice shall 

contain a statement of the facts constituting the alleged violation or violations or 

the unsafe or unsound practice or practices, and shall fix a time and place at 

which a hearing will be held to determine whether an order to cease and desist 

therefrom should issue against the institution. Such hearing shall be fixed for a 

date not earlier than thirty days nor later than sixty days after service of such 

notice unless an earlier or a later date is set by the Corporation at the request of 

the institution. Unless the institution shall appear at the hearing by a duly authorized representative, it shall be deemed to have consented to the issuance of the 

cease-and-desist order. In the event of such consent, or if upon the record made 

at any such hearing the Corporation shall find that any violation or unsafe or unsound practice specified in the notice of charges has been established, the Corporation may issue and serve upon the institution an order to cease and desist 

from any such violation or practice. Such order may, by provisions which may be 

mandatory or otherwise, require the institution and its directors, officers, employees, and agents to cease and desist from the same, and, further to take 

affirmative action to correct the conditions resulting from any such violation or 

practice.

“ (2) A cease-and-desist order shall become effective at the expiration of thirty 

days after service of such order upon the institution concerned (except in the 

case of a cease-and-desist order issued upon consent, which shall become effective at the time specified therein), and shall remain effective and enforceable except to such extent as it is stayed, modified, terminated, or set aside by action of 

the Corporation or a reviewing court.

“ (f) Temporary Cease-and-Desist Orders.— (1) Whenever the Corporation shall 

determine that the violation or threatened violation or the unsafe or unsound practice or practices, specified in the notice of charges served upon the institution 

pursuant to subsection (e) (1) of this section, or the continuation thereof, is likely 

to cause insolvency or substantial dissipation of assets or earnings of the institution, or is likely to otherwise seriously prejudice the interest of its insured members or of the Corporation, the Corporation may issue a temporary order requiring the institution to cease and desist from any such violation or practice. Such 

order shall become effective upon service upon the institution and, unless set 

aside, limited, or suspended by a court in proceedings authorized by paragraph 

(2) of this subsection, shall remain effective and enforceable pending the completion of the administrative proceedings pursuant to such notice and until such 

time as the Corporation shall dismiss the charges specified in such notice or, if 

a cease-and-desist order is issued against the institution, until the effective date 

of any such order.

“ (2) Within ten days after the institution concerned has been served with a 

temporary cease-and-desist order, the institution may apply to the United States 

district court for the judicial district in which the principal office of the institution 

is located, or the United States District Court for the District of Columbia, for an 

injunction setting aside, limiting, or suspending the enforcement, operation, or 

effectiveness of such order pending the completion of the administrative proceedings pursuant to the notice of charges served upon the institution under subsection (e) (1) of this section, and such court shall have jurisdiction to issue such 

injunction.

“ (3) In the case of violation or threatened violation of, or failure to obey, a 

temporary cease-and-desist order, the Corporation may apply to the United States 

district court, or the United States court of any territory, within the jurisdiction of 

which the principal office of the institution is located, for an injunction to enforce 

such order, and, if the court shall determine that there has been such violation or 

threatened violation or failure to obey, it shall be the duty of the court to issue 

such injunction.

“ (g) Suspension or Removal of Director or Officer.— (1) Whenever, in the opinion of the Corporation, any director or officer of an insured institution has committed any violation of law, rule, or regulation, or of a cease-and-desist order 

which has become final, or has engaged or participated in any unsafe or unsound 

practice in connection with the institution, or has committed or engaged in any

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
92 FEDERAL DEPOSIT INSURANCE CORPORATION

act, omission, or practice which constitutes a breach of his fiduciary duty as such 

director or officer, and the Corporation determines that the institution has suffered 

or will probably suffer substantial financial loss or other damage or that the 

interests of its insured members could be seriously prejudiced by reason of such 

violation or practice or breach of fiduciary duty, and that such violation or practice or breach of fiduciary duty is one involving personal dishonesty on the part 

of such director or officer, the Corporation may serve upon such director or officer a written notice of its intention to remove him from office.

“ (2) Whenever, in the opinion of the Corporation, any director or officer of an 

insured institution, by conduct or practice with respect to another insured institution or other business institution which resulted in substantial financial loss or 

other damage, has evidenced his personal dishonesty and unfitness to continue 

as a director or officer, and, whenever, in the opinion of the Corporation, any 

other person participating in the conduct of the affairs of an insured institution, 

by conduct or practice with respect to such institution or other insured institution 

or other business institution which resulted in substantial financial loss or other 

damage, has evidenced his personal dishonesty and unfitness to participate in 

the conduct of the affairs of such insured institution, the Corporation may serve 

upon such director, officer, or other person a written notice of its intention to 

remove him from office and/or to prohibit his further participation in any manner 

in the conduct of the affairs of such institution.

“ (3) In respect to any director or officer of an insured institution or any other 

person referred to in paragraph (1) or (2) of this subsection, the Corporation may, 

if it deems it necessary for the protection of the institution or the interests of its 

insured members or of the Corporation, by written notice to such effect served 

upon such director, officer, or other person, suspend him from office and/or prohibit him from further participation in any manner in the conduct of the affairs of 

the institution. Such suspension and/or prohibition shall become effective upon 

service of such notice and, unless stayed by a court in proceedings authorized 

by paragraph (5) of this subsection, shall remain in effect pending the completion 

of the administrative proceedings pursuant to the notice served under paragraph

(1) or (2) of this subsection and until such time as the Corporation shall dismiss 

the charges specified in such notice, or, if an order of removal and/or prohibition 

is issued against the director or officer or other person, until the effective date 

of any such order. Copies of any such notice shall also be served upon the institution of which he is a director or officer or in the conduct of whose affairs he 

has participated.

“ (4) A notice of intention to remove a director, officer, or other person from 

office and/or to prohibit his participation in the conduct of the affairs of an insured institution, shall contain a statement of the facts constituting grounds therefor, and shall fix a time and place at which a hearing will be held thereon. Such 

hearing shall be fixed for a date not earlier than thirty days nor later than sixty 

days after the date of service of such notice, unless an earlier or a later date is 

set by the Corporation at the request of (A) such director, officer, or other person 

and for good cause shown, or (B) the Attorney General of the United States. Unless such director, officer, or other person shall appear at the hearing in person 

or by a duly authorized representative, he shall be deemed to have consented 

to the issuance of an order of such removal and/or prohibition. In the event of 

such consent, or if upon the record made at any such hearing the Corporation 

shall find that any of the grounds specified in such notice has been established, 

the Corporation may issue such orders of suspension or removal from office, 

and/or prohibition from participation in the conduct of the affairs of the institution, as it may deem appropriate. Any such order shall become effective at the 

expiration of thirty days after service upon such institution and the director, officer, or other person concerned (except in the case of an order issued upon consent, which shall become effective at the time specified therein). Such order shall 

remain effective and enforceable except to such extent as it is stayed, modified, 

terminated, or set aside by action of the Corporation or a reviewing court.

“ (5) Within ten days after any director, officer, or other person has been suspended from office and/or prohibited from participation in the conduct of the

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL BANKING LEGISLATION— 1966 93

affairs of an insured institution under paragraph (3) of this subsection, such director, officer, or other person may apply to the United States district court for the 

judicial district in which the principal office of the institution is located, or the 

United States District Court for the District of Columbia, for a stay of such suspension and/or prohibition pending the completion of the administrative proceedings pursuant to the notice served upon such director, officer, or other person 

under paragraph (1) or (2) of this subsection, and such court shall have jurisdiction to stay such suspension and/or prohibition.

“ (h) Suspension of Director or Officer Charged with Felony.— Whenever any 

director or officer of an insured institution, or other person participating in the 

conduct of the affairs of such institution, is charged in any information, indictment, or complaint authorized by a United States Attorney, with the commission 

of or participation in a felony involving dishonesty or breach of trust, the Corporation may, by written notice served upon such director, officer, or other person, 

suspend him from office and/or prohibit him from further participation in any 

manner in the conduct of the affairs of the institution. A copy of such notice shall 

also be served upon the institution. Such suspension and/or prohibition shall 

remain in effect until such information, indictment, or complaint is finally disposed 

of or until terminated by the Corporation. In the event that a judgment of conviction with respect to such offense is entered against such director, officer, or other 

person, and at such time as such judgment is not subject to further appellate review, the Corporation may issue and serve upon such director, officer, or other 

person an order removing him from office and/or prohibiting him from further 

participation in any manner in the conduct of the affairs of the institution except 

with the consent of the Corporation. A copy of such order shall also be served 

upon such institution, whereupon such director or officer shall cease to be a 

director or officer of such institution. A finding of not guilty or other disposition 

of the charge shall not preclude the Corporation from thereafter instituting proceedings to remove such director, officer, or other person from office and/or to 

prohibit further participation in institution affairs, pursuant to paragraph (1) or (2) 

of subsection (g) of this section.

“ (i) Termination of Federal Home Loan Bank Membership.— Termination under 

this section or otherwise of the status of an institution as an insured institution 

shall automatically constitute a removal under subsection (i) of section 6 of the 

Federal Home Loan Bank Act of the institution from Federal home loan bank 

membership, if at the time of such termination such institution is a member of a 

Federal home loan bank; and removal of an institution from Federal home loan 

bank membership under subsection (i) of section 6 of the Federal Home Loan 

Bank Act or otherwise shall automatically constitute an order of termination 

under this section of the status of such institution as an insured institution, if 

such institution is at the time of such removal an insured institution.

“ (j) Hearings and Judicial Review.— (1) Any hearing provided for in this section shall be held in the Federal judicial district or in the territory in which the 

principal office of the institution is located unless the party afforded the hearing 

consents to another place, and shall be conducted in accordance with the provisions of chapter 5 of title 5 of the United States Code. Such hearing shall be 

private, unless the Corporation, in its discretion, after fully considering the views 

of the party afforded the hearing, determines that a public hearing is necessary 

to protect the public interest. After such hearing, and within ninety days after the 

Corporation has notified the parties that the case has been submitted to it for 

final decision, the Corporation shall render its decision (which shall include findings of fact upon which its decision is predicated) and shall issue and cause to 

be served upon each party to the proceeding an order or orders consistent with 

the provisions of this section. Judicial review of any such order shall be exclusively as provided in this subsection. Unless a petition for review is timely filed 

in a court of appeals of the United States, as hereinafter provided in paragraph

(2) of this subsection, and thereafter until the record in the proceeding has been 

filed as so provided, the Corporation may at any time, upon such notice and in 

such manner as it shall deem proper, modify, terminate, or set aside any such

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
94 FEDERAL DEPOSIT INSURANCE CORPORATION

order. Upon such filing of the record, the Corporation may modify, terminate, or 

set aside any such order with permission of the court.

“ (2) Any party to the proceeding, or any person required by an order issued 

under this section to cease and desist from any of the violations or practices 

stated therein, may obtain a review of any order served pursuant to paragraph (1) 

of this subsection (other than an order issued with the consent of the institution 

or the director or officer or other person concerned, or an order issued under 

subsection (h) of this section), by filing in the court of appeals of the United States 

for the circuit in which the principal office of the institution is located, or in the 

United States Court of Appeals for the District of Columbia Circuit, within thirty 

days after the date of service of such order, a written petition praying that the 

order of the Corporation be modified, terminated, or set aside. A copy of such 

petition shall be forthwith transmitted by the clerk of the court to the Corporation, and thereupon the Corporation shall file in the court the record in the proceeding, as provided in section 2112 of title 28 of the United States Code. Upon 

the filing of such petition, such court shall have jurisdiction, which upon the filing 

of the record shall, except as provided in the last sentence of said paragraph (1), 

be exclusive, to affirm, modify, terminate, or set aside, in whole or in part, the 

order of the Corporation. Review of such proceedings shall be had as provided 

in chapter 7 of title 5 of the United States Code. The judgment and decree of the 

court shall be final, except that the same shall be subject to review by the Supreme Court upon certiorari as provided in section 1254 of title 28 of the United 

States Code.

“ (3) The commencement of proceedings for judicial review under paragraph

(2) of this subsection shall not, unless specifically ordered by the court, operate 

as a stay of any order issued by the Corporation.

“ (k) Jurisdiction and Enforcement.— (1) Notwithstanding any other provision 

of law, (A) the Corporation shall be deemed to be an agency of the United States 

within the meaning of section 451 of title 28 of the United States Code; (B) any 

civil action, suit, or proceeding to which the Corporation shall be a party shall be 

deemed to arise under the laws of the United States, and the United States district courts shall have original jurisdiction thereof, without regard to the amount 

in controversy; and (C) the Corporation may, without bond or security, remove 

any such action, suit, or proceeding from a State court to the United States district court for the district and division embracing the place where the same is 

pending by following any procedure for removal now or hereafter in effect: Provided, That any action, suit, or proceeding to which the Corporation is a party 

in its capacity as conservator, receiver, or other legal custodian of an insured 

State-chartered institution and which involves only the rights or obligations of 

investors, creditors, stockholders, and such institution under State law shall not 

be deemed to arise under the laws of the United States. No attachment or execution shall be issued against the Corporation or its property before final judgment 

in any action, suit, or proceeding in any court of any State or of the United States 

or any territory, or any other court.

“ (2) The Corporation may, in its discretion, apply to the United States district 

court, or the United States court of any territory, within the jurisdiction of which 

the principal office of the institution is located, for the enforcement of any effective and outstanding notice or order issued by the Corporation under this section, 

and such courts shall have jurisdiction and power to order and require compliance therewith; but except as otherwise provided in this section no court shall 

have jurisdiction to affect by injunction or otherwise the issuance or enforcement 

of any notice or order under this section, or to review, modify, suspend, term inate, or set aside any such notice or order.

“ (I) Reporting Requirements.— (1) Whenever a change occurs in the outstanding voting stock of any insured institution which will result in control or a change 

in the control of such institution, the president or other chief executive officer of 

such institution shall promptly report such facts to the Corporation upon obtaining knowledge of such change. As used in this subsection, the term ‘control’ 

means the power to directly or indirectly direct or cause the direction of the management or policies of the insured institution. If there is any doubt as to whether

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL BANKING LEGISLATION— 1966 95

a change in ownership or other change in the outstanding voting stock of any 

insured institution is sufficient to result in control or a change in the control 

thereof, such doubt shall be resolved in favor of reporting the facts to the 

Corporation.

“ (2) Whenever an insured institution or an insured bank of the Federal Deposit 

Insurance Corporation makes a loan or loans secured (or to be secured) by 25 

per centum or more of the voting stock of an insured institution, the president 

or other chief executive officer of the lending insured institution or insured bank 

shall promptly report such fact to the Corporation upon obtaining knowledge of 

such loan or loans, except that no report need be made in those cases where the 

borrower has been the owner of record of the stock for a period of one year or 

more, or the stock is of a newly organized insured institution prior to its opening.

“ (3) The reports required by paragraphs (1) and (2) of this subsection shall contain the following information to the extent that it is known by the person making 

the report: (A) the number of shares involved, (B) the names of the sellers (or 

transferors), (C) the names of the purchasers (or transferees), (D) the names of 

the beneficial owners if the shares are of record in another name or other names, 

(E) the purchase price, (F) the total number of shares owned by the sellers (or 

transferors), the purchasers (or transferees) and the beneficial owners both immediately before and after the transaction, and in the case of a loan, (G) the name 

of the borrower, (H) the amount of the loan, and (I) the name of the institution 

issuing the stock securing the loan and the number of shares securing the loan. 

In addition to the foregoing, such reports shall contain such other information as 

may be available to inform the Corporation of the effect of the transaction upon 

control of the institution whose stock is involved. The reports required by this 

subsection shall be in addition to any reports that may be required pursuant to 

other provisions of law.

“ (4) Whenever such a change as is described in paragraph (1) of this subsection occurs, the insured institution involved shall report promptly to the Corporation any change or changes, or replacement or replacements, of its chief executive officer or of any director occurring in the next twelve-month period, including 

in its report a statement of the past and current business and professional affiliations of the new chief executive officer or director.

“ (5) Without limitation by or on the foregoing provisions of this subsection, the 

Corporation may require insured institutions and individuals or other persons who 

have or have had any connection with the management of any insured institution, 

as defined by the Corporation, to provide, in such manner and under such civil 

penalties (which shall be cumulative to any other remedies) as the Corporation 

may prescribe, such periodic or other reports and disclosures as the Corporation 

may determine to be necessary or appropriate for the protection of investors or 

the Corporation.

“ (6) As used in this subsection, the term ‘stock’ means such stock or other 

equity securities or equity interests in an insured institution, or rights, interests, 

or powers with respect thereto, regardless of whether such institution is a stock 

company, a mutual institution, or otherwise, as the Corporation may by regulation 

define for the purposes of this subsection.

“ (m) Ancillary Provisions.— (1) In making examinations of insured institutions, 

examiners appointed by the Federal Home Loan Bank Board shall have power, on 

behalf of the Corporation, to make such examinations of the affairs of all affiliates 

of such institutions as shall be necessary to disclose fully the relations between 

such institutions and their affiliates and the effect of such relations upon such 

institutions. The cost of examinations of such affiliates shall be assessed against 

and paid by the institution. For purposes of this subsection, the term ‘affiliate’ 

shall have the same meaning as where used in section 2(b) of the Banking Act of 

1933 (12 U.S.C. 221 a(b)), except that the term ‘member bank’ in said section 2(b) 

shall be deemed to refer to an insured institution.

“ (2) In connection with examinations of insured institutions and affiliates thereof, the Corporation, or its designated representatives, shall have power to administer oaths and affirmations and to examine and to take and preserve testimony 

under oath as to any matter in respect of the affairs or ownership of any such

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
96 FEDERAL DEPOSIT INSURANCE CORPORATION

institution or affiliate thereof, and to issue subpenas and subpenas duces tecum, 

and, for the enforcement thereof, to apply to the United States district court for 

the judicial district or the United States court in any territory in which the principal office of the institution or affiliate thereof is located, or in which the witness 

resides or carries on business. Such courts shall have jurisdiction and power to 

order and require compliance with any such subpena.

“ (3) In the course of or in connection with any proceeding under this section, 

the Corporation or its designated representatives, including any person designated to conduct any hearing under this section, shall have power to administer 

oaths and affirmations, to take or cause to be taken depositions, and to issue, 

revoke, quash, or modify subpenas and subpenas duces tecum; and the Corporation is empowered to make rules and regulations with respect to any such proceedings. The attendance of witnesses and the production of documents provided 

for in this subsection may be required from any place in any State or in any territory at any designated place where such proceeding is being conducted. Any 

party to proceedings under this section may apply to the United States District 

Court for the District of Columbia, or the United States district court for the judicial district or the United States court in any territory in which such proceeding 

is being conducted, or where the witness resides or carries on business, for enforcement of any subpena or subpena duces tecum issued pursuant to this subsection, and such courts shall have jurisdiction and power to order and require 

compliance therewith. Witnesses subpenaed under this section shall be paid the 

same fees and mileage that are paid witnesses in the district courts of the United 

States. All expenses of the Board or of the Federal Savings and Loan Insurance 

Corporation in connection with this section shall be considered as nonadministrative expenses. Any court having jurisdiction of any proceeding instituted under 

this section by an insured institution, or a director or officer thereof, may allow 

to any such party such reasonable expenses and attorneys’ fees as it deems just 

and proper; and such expenses and fees shall be paid by the institution or from 

its assets.

“ (n) Service.— Any service required or authorized to be made by the Corporation under this section may be made by registered mail, or in such other manner 

reasonably calculated to give actual notice as the Corporation may by regulation 

or otherwise provide. Copies of any notice or order served by the Corporation 

upon any State-chartered institution or any director or officer thereof or other 

person participating in the conduct of its affairs, pursuant to the provisions of 

this section, shall also be sent to the appropriate State supervisory authority.

“ (o) Notice to State Authorities.— In connection with any proceeding under 

subsection (e), (f)(1), or (g) of this section involving an insured State-chartered 

institution or any director or officer or other person participating in the conduct 

of its affairs, the Corporation shall provide the appropriate State supervisory authority with notice of the Corporation’s intent to institute such a proceeding and 

the grounds therefor. Unless within such time as the Corporation deems appropriate in the light of the circumstances of the case (which time must be specified 

in the notice prescribed in the preceding sentence) satisfactory corrective action 

is effectuated by action of the State supervisory authority, the Corporation may 

proceed as provided in this section. No institution or other party who is the subject of any notice or order issued by the Corporation under this section shall have 

standing to raise the requirements of this subsection as ground for attacking the 

validity of any such notice or order.

“ (p) Penalties.— (1) Any director or officer, or former director or officer, of an 

insured institution or an institution any of the accounts of which are insured, or 

any other person, against whom there is outstanding and effective any notice or 

order (which is an order which has become final) served upon such director, officer, or other person under subsection (g)(3), (g)(4), or (h) of this section, and who 

(A) participates in any manner in the conduct of the affairs of such institution, or 

directly or indirectly solicits or procures, or transfers or attempts to transfer, or 

votes or attempts to vote any proxies, consents, or authorizations in respect to 

any voting rights in such institution, or (B) without the prior written approval of 

the Corporation, votes for a director or serves or acts as a director, officer, or

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL BANKING LEGISLATION— 1966 97

employee of any insured institution, shall upon conviction be fined not more than 

$5,000 or imprisoned for not more than one year, or both.

“ (2) Except with the prior written consent of the Corporation, no person shall 

serve as a director, officer, or employee of an insured institution who has been 

convicted, or who is hereafter convicted, of a criminal offense involving dishonesty 

or a breach of trust. For each willful violation of this prohibition, the institution 

involved shall be subject to a penalty of not more than $100 for each day this 

prohibition is violated, which the Corporation may recover by suit or otherwise 

for its own use.

“ (q) Definitions.— (1) As used in this section—

“ (A) The terms ‘cease-and-desist order which has become final’ and ‘order 

which has become final’ mean a cease-and-desist order, or an order, issued by 

the Corporation with the consent of the institution or the director or officer or 

other person concerned, or with respect to which no petition for review of the 

action of the Corporation has been filed and perfected in a court of appeals as 

specified in subsection (j) (2) of this section, or with respect to which the action 

of the court in which said petition is so filed is not subject to further review by 

the Supreme Court of the United States in proceedings provided for in said subsection, or an order issued under subsection (h) of this section.

“ (B) The term ‘State’ includes the Commonwealth of Puerto Rico.

“ (C) The term ‘territory’ includes any possession of the United States and any 

place subject to the jurisdiction of the United States.

“ (D) The terms ‘district’, ‘district court’, ‘district court of the United States’, and 

‘judicial district’ shall have the meanings defined in section 451 of title 28 of the 

United States Code.

“ (2) As used in subsection (f) of this section, the term ‘insolvency’ means that 

the assets of an institution are less than its obligations to its creditors and others, 

including its members.

“ (3) As used in subsection (g) of this section, the term ‘violation’ includes without limitation any action (alone or with another or others) for or toward causing, 

bringing about, participating in, counseling, or aiding or abetting a violation.”

(b) The amendment made by subsection (a) of this section shall be effective 

only with respect to proceedings commenced on or after the date of enactment 

of this Act. Section 407 of the National Housing Act as in effect immediately prior 

to the date of enactment of this Act shall continue in effect with respect to any 

proceedings commenced prior to such date.

Sec. 103. Subsection (c) of section 408 of the National Housing Act (12 U.S.C. 

1730a(c)) is amended to read:

“ (c) It shall be unlawful for any company on or after September 23, 1959— 

“ (1) to acquire the control of more than one insured institution, or 

“ (2) to acquire the control of an insured institution when it holds the control 

of any other insured institution, 

except in a transaction which has been approved by the Federal Home Loan Bank 

Board upon a determination by it that such transaction is advisable to assist in 

preventing the commencement or continuance of involuntary liquidation of the 

insured institution whose control, whether by acquisition of stock or assets or 

otherwise, as being acquired by such company or an insured institution which it 

controls.”

TITLE II— PROVISION RELATING TO THE FEDERAL DEPOSIT INSURANCE 

CORPORATION, THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE 

SYSTEM, AND THE COMPTROLLER OF THE CURRENCY

Sec. 201. Paragraph (6) of subsection (j) of section 7 of the Federal Deposit 

Insurance Act (12 U.S.C. 1817(j)(6)) is repealed and section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813) is amended by adding the following new 

subsection (q):

“ (q) The term ‘appropriate Federal banking agency’ shall mean (1) the Comptroller of the Currency in the case of a national banking association or a District 

bank, (2) the Board of Governors of the Federal Reserve System in the case of a

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
98 FEDERAL DEPOSIT INSURANCE CORPORATION

State member insured bank (except a District bank), and (3) the Federal Deposit 

Insurance Corporation in the case of a State nonmember insured bank (except a 

District bank).”

Sec. 202. Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818), is 

amended by redesignating subsections (b), (c), and (d) thereof as (o), (p), and (q) 

and by adding after subsection (a) thereof the following new subsections (b) 

through (n), inclusive:

“ (b)(1) If, in the opinion of the appropriate Federal banking agency, any insured 

bank or bank which has insured deposits is engaging or has engaged, or the 

agency has reasonable cause to believe that the bank is about to engage, in an 

unsafe or unsound practice in conducting the business of such bank, or is violating or has violated, or the agency has reasonable cause to believe that the bank 

is about to violate, a law, rule, or regulation, or any condition imposed in writing 

by the agency in connection with the granting of any application or other request 

by the bank, or any written agreement entered into with the agency, the agency 

may issue and serve upon the bank a notice of charges in respect thereof. The 

notice shall contain a statement of the facts constituting the alleged violation or 

violations or the unsafe or unsound practice or practices, and shall fix a time and 

place at which a hearing will be held to determine whether an order to cease and 

desist therefrom should issue against the bank. Such hearing shall be fixed for 

a date not earlier than thirty days nor later than sixty days after service of such 

notice unless an earlier or a later date is set by the agency at the request of the 

bank. Unless the bank shall appear at the hearing by a duly authorized representative, it shall be deemed to have consented to the issuance of the cease-anddesist order. In the event of such consent, or if upon the record made at any such 

hearing, the agency shall find that any violation or unsafe or unsound practice 

specified in the notice of charges has been established, the agency may issue 

and serve upon the bank an order to cease and desist from any such violation or 

practice. Such order may, by provisions which may be mandatory or otherwise, 

require the bank and its directors, officers, employees, and agents to cease and 

desist from the same, and, further, to take affirmative action to correct the conditions resulting from any such violation or practice.

“ (2) A cease-and-desist order shall become effective at the expiration of thirty 

days after the service of such order upon the bank concerned (except in the case 

of a cease-and-desist order issued upon consent, which shall become effective at 

the time specified therein), and shall remain effective and enforceable as provided therein, except to such extent as it is stayed, modified, terminated, or set 

aside by action of the agency or a reviewing court.

“ (c)(1) Whenever the appropriate Federal banking agency shall determine that 

the violation or threatened violation or the unsafe or unsound practice or practices, specified in the notice of charges served upon the bank pursuant to paragraph (1) of subsection (b) of this section, or the continuation thereof, is likely to 

cause insolvency or substantial dissipation of assets or earnings of the bank, or 

is likely to otherwise seriously prejudice the interests of its depositors, the agency 

may issue a temporary order requiring the bank to cease and desist from any 

such violation or practice. Such order shall become effective upon service upon 

the bank and, unless set aside, limited, or suspended by a court in proceedings 

authorized by paragraph (2) of this subsection, shall remain effective and enforceable pending the completion of the administrative proceedings pursuant to such 

notice and until such time as the agency shall dismiss the charges specified in 

such notice, or if a cease-and-desist order is issued against the bank, until the 

effective date of any such order.

“ (2) Within ten days after the bank concerned has been served with a temporary cease-and-desist order, the bank may apply to the United States district 

court for the judicial district in which the home office of the bank is located, or 

the United States District Court for the District of Columbia, for an injunction 

setting aside, limiting, or suspending the enforcement, operation, or effectiveness 

of such order pending the completion of the administrative proceedings pursuant 

to the notice of charges served upon the bank under paragraph (1) of subsection

(b) of this section, and such court shall have jurisdiction to issue such injunction.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL BANKING LEGISLATION— 1966 99

“ (d) In the case of violation or threatened violation of, or failure to obey, a 

temporary cease-and-desist order issued pursuant to paragraph (1) of subsection

(c) of this section, the appropriate Federal banking agency may apply to the 

United States district court, or the United States court of any territory, within the 

jurisdiction of which the home office of the bank is located, for an injunction to 

enforce such order, and, if the court shall determine that there has been such 

violation or threatened violation or failure to obey, it shall be the duty of the 

court to issue such injunction.

“ (e)(1) Whenever, in the opinion of the appropriate Federal banking agency, 

any director or officer of an insured State bank (other than a District bank) has 

committed any violation of law, rule, or regulation, or of a cease-and-desist order 

which has become final, or has engaged or participated in any unsafe or unsound 

practice in connection with the bank, or has committed or engaged in any act, 

omission, or practice which constitutes a breach of his fiduciary duty as such 

director or officer, and the agency determines that the bank has suffered or will 

probably suffer substantial financial loss or other damage or that the interests of 

its depositors could be seriously prejudiced by reason of such violation or practice or breach of fiduciary duty, and that such violation or practice or breach of 

fiduciary duty is one involving personal dishonesty on the part of such director 

or officer, the agency may serve upon such director or officer a written notice of 

its intention to remove him from office.

“ (2) Whenever, in the opinion of the Comptroller of the Currency, any director 

or officer of a national banking association or a District bank has committed any 

violation of law, rule, or regulation, or of a cease-and-desist order which has become final, or has engaged or participated in any unsafe or unsound practice 

in connection with the bank, or has committed or engaged in any act, omission, 

or practice which constitutes a breach of his fiduciary duty as such director or 

officer, and the Comptroller determines that the bank has suffered or will probably suffer substantial financial loss or other damage or that the interests of its 

depositors could be seriously prejudiced by reason of such violation or practice 

or breach of fiduciary duty, and that such violation or practice or breach of 

fiduciary duty is one involving personal dishonesty on the part of such director 

or officer, the Comptroller of the Currency may certify the facts to the Board of 

Governors of the Federal Reserve System.

“ (3) Whenever, in the opinion of the appropriate Federal banking agency, any 

director or officer of an insured State bank (other than a District bank), by conduct 

or practice with respect to another insured bank or other business institution which 

resulted in substantial financial loss or other damage, has evidenced his personal 

dishonesty and unfitness to continue as a director or officer and, whenever, in 

the opinion of the appropriate Federal banking agency, any other person participating in the conduct of the affairs of an insured State bank (other than a 

District bank), by conduct or practice with respect to such bank or other insured 

bank or other business institution which resulted in substantial financial loss or 

other damage, has evidenced his personal dishonesty and unfitness to participate 

in the conduct of the affairs of such insured bank, the agency may serve upon 

such director, officer, or other person a written notice of its intention to remove 

him from office and/or to prohibit his further participation in any manner in the 

conduct of the affairs of the bank.

“ (4) Whenever, in the opinion of the Comptroller of the Currency, any director or 

officer of a national banking association or a District bank, by conduct or practice 

with respect to another insured bank or other busines institution which resulted 

in substantial financial loss or other damage, has evidenced his personal dishonesty and unfitness to continue as a director or officer and, whenever, in the 

opinion of the Comptroller, any other person participating in the conduct of the 

affairs of a national banking association or a District bank, by conduct or practice with respect to such bank or other insured bank or other business institution 

which resulted in substantial financial loss or other damage, has evidenced his 

personal dishonesty and unfitness to participate in the conduct of the affairs of 

such bank, the Comptroller of the Currency may certify the facts to the Board 

of Governors of the Federal Reserve System.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
100 FEDERAL DEPOSIT INSURANCE CORPORATION

“ (5) In respect to any director or officer of an insured State bank (other than 

a District bank) or any other person referred to in paragraph (1) or (3) of this 

subsection, the appropriate Federal banking agency may, if it deems it necessary 

for the protection of the bank or the interests of its depositors, by written notice 

to such effect served upon such director, officer, or other person, suspend him 

from office and/or prohibit him from further participation in any manner in the 

conduct of the affairs of the bank. Such suspension and/or prohibition shall 

become effective upon service of such notice and, unless stayed by a court in 

proceedings authorized by subsection (f) of this section, shall remain in effect 

pending the completion of the administrative proceedings pursuant to the notice 

served under paragraph (1) or (3) of this subsection and until such time as the 

agency shall dismiss the charges specified in such notice, or, if an order of 

removal and/or prohibition is issued against the director or officer or other person, until the effective date of any such order. Copies of any such notice shall 

also be served upon the bank of which he is a director or officer or in the conduct of whose affairs he has participated.

“ (6) In respect to any director or officer of a national banking association or 

a District bank, or any other person referred to in paragraph (2) or (4) of this 

subsection, the Comptroller of the Currency may, if he deems it necessary for 

the protection of the bank or the interests of its depositors that such director or 

officer be suspended from office or prohibited from further participation in any 

manner in the conduct of the affairs of the bank, certify the facts to the Board 

of Governors of the Federal Reserve System.

“ (7) In the case of a certification to the Board of Governors of the Federal 

Reserve System under paragraph (2) or (4) of this subsection, the Board may 

serve upon the director, officer, or other person involved, a written notice of its 

intention to remove him from office and/or to prohibit him from further participation 

in any manner in the conduct of the affairs of the bank. In the case of a certification to the Board of Governors of the Federal Reserve System under paragraph (6) of this subsection, the Board may by written notice to such effect 

served upon such director, officer, or other person, suspend him from office and/or 

prohibit him from further participation in any manner in the conduct of the 

affairs of the bank. Such suspension and/or prohibition shall become effective 

upon service of such notice and, unless stayed by a court in proceedings authorized by subsection (f) of this section, shall remain in effect pending the completion of the administrative proceedings pursuant to the notice served under the 

first sentence of this paragraph and until such time as the Board shall dismiss the 

charges specified in such notice, or, if an order of removal and/or prohibition is 

issued against the director or officer or other person, until the effective date of 

any such order. Copies of any such notice shall also be served upon the bank 

of which he is a director or officer or in the conduct of whose affairs he has 

participated. For the purposes of this paragraph and paragraph (8) of this subsection, the Comptroller of the Currency shall be entitled in any case involving 

a national bank or a District bank to sit as a member of the Board of Governors 

of the Federal Reserve System and to participate in its deliberations on any 

such case and to vote thereon in all respects as a member of such Board.

“ (8) A notice of intention to remove a director, officer, or other person from 

office and/or to prohibit his participation in the conduct of the affairs of an insured bank, shall contain a statement of the facts constituting grounds therefor, 

and shall fix a time and place at which a hearing will be held thereon. Such 

hearing shall be fixed for a date not earlier than thirty days nor later than sixty 

days after the date of service of such notice, unless an earlier or a later date is 

set by the agency at the request of (A) such director or officer or other person, 

and for good cause shown, or (B) the Attorney General of the United States. 

Unless such director, officer, or other person shall appear at the hearing in person 

or by a duly authorized representative, he shall be deemed to have consented to 

the issuance of an order of such removal and/or prohibition. In the event of such 

consent, or if upon the record made at any such hearing the agency shall find 

that any of the grounds specified in such notice has been established, the agency 

may issue such orders of suspension or removal from office, and/or prohibition

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL BANKING LEGISLATION— 1966 101

from participation in the conduct of the affairs of the bank, as it may deem 

appropriate. Any such order shall become effective at the expiration of thirty days 

after service upon such bank and the director, officer, or other person concerned 

(except in the case of an order issued upon consent, which shall become effective at the time specified therein). Such order shall remain effective and enforceable except to such extent as it is stayed, modified, terminated, or set aside by 

action of the agency or a reviewing court.

“ (f) Within ten days after any director, officer, or other person has been 

suspended from office and/or prohibited from participation in the conduct of the 

affairs of an insured bank under subsection (e)(5) or (e)(7) of this section, such 

director, officer, or other person may apply to the United States district court 

for the judicial district in which the home office of the bank is located, or the 

United States District Court for the District of Columbia, for a stay of such suspension and/or prohibition pending the completion of the administrative proceedings pursuant to the notice served upon such director, officer, or other person 

under subsection (e)(1), (e)(3), or (e)(7) of this section, and such court shall have 

jurisdiction to stay such suspension and/or prohibition.

“ (g)(1) Whenever any director or officer of an insured bank, or other person 

participating in the conduct of the affairs of such bank, is charged in any information, indictment, or complaint authorized by a United States attorney, with the 

commission of or participation in a felony involving dishonesty or breach of trust, 

the appropriate Federal banking agency may, by written notice served upon such 

director, officer, or other person suspend him from office and/or prohibit him 

from further participation in any manner in the conduct of the affairs of the 

bank. A copy of such notice shall also be served upon the bank. Such suspension and/or prohibition shall remain in effect until such information, indictment, 

or complaint is finally disposed of or until terminated by the agency. In the 

event that a judgment of conviction with respect to such offense is entered against 

such director, officer, or other person, and at such time as such judgment is 

not subject to further appellate review, the agency may issue and serve upon 

such director, officer, or other person an order removing him from office and/or 

prohibiting him from further participation in any manner in the conduct of the 

affairs of the bank except with the consent of the appropriate agency. A copy 

of such order shall also be served upon such bank, whereupon such director or 

officer shall cease to be a director or officer of such bank. A finding of not 

guilty or other disposition of the charge shall not preclude the agency from 

thereafter instituting proceedings to remove such director, officer, or other person from office and/or to prohibit further participation in bank affairs, pursuant 

to paragraph (1), (2), (3), (4), or (7) of subsection (e) of this section.

“ (2) If at any time, because of the suspension of one or more directors pursuant 

to this section, there shall be on the board of directors of a national bank less 

than a quorum of directors not so suspended, all powers and functions vested in 

or exercisable by such board shall vest in and be exercisable by the director 

or directors on the board not so suspended, until such time as there shall be a 

quorum of the board of directors. In the event all of the directors of a national 

bank are suspended pursuant to this section, the Comptroller of the Currency 

shall appoint persons to serve temporarily as directors in their place and stead 

pending the termination of such suspensions, or until such time as those who 

have been suspended, cease to be directors of the bank and their respective 

successors take office.

“ (h)(1) Any hearing provided for in this section shall be held in the Federal 

judicial district or in the territory in which the home office of the bank is located 

unless the party afforded the hearing consents to another place, and shall be conducted in accordance with the provisions of chapter 5 of title 5 of the United 

States Code. Such hearing shall be private, unless the appropriate Federal banking 

agency, in its discretion, after fully considering the views of the party afforded 

the hearing, determines that a public hearing is necessary to protect the public 

interest. After such hearing, and within ninety days after the appropriate Federal 

banking agency or Board of Governors of the Federal Reserve System has notified the parties that the case has been submitted to it for final decision, it shall

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
102 FEDERAL DEPOSIT INSURANCE CORPORATION

render its decision (which shall include findings of fact upon which its decision is 

predicated) and shall issue and serve upon each party to the proceeding an 

order or orders consistent with the provisions of this section. Judicial review 

of any such order shall be exclusively as provided in this subsection (h). Unless 

a petition for review is timely filed in a court of appeals of the United States, as 

hereinafter provided in paragraph (2) of this subsection, and thereafter until the 

record in the proceeding has been filed as so provided, the issuing agency may at 

any time, upon such notice and in such manner as it shall deem proper, modify, 

terminate, or set aside any such order. Upon such filing of the record, the 

agency may modify, terminate, or set aside any such order with permission of 

the court.

“ (2) Any party to the proceeding, or any person required by an order issued 

under this section to cease and desist from any of the violations or practices 

stated therein, may obtain a review of any order served pursuant to paragraph (1) 

of this subsection (other than an order issued with the consent of the bank or the 

director or officer or other person concerned, or an order issued under paragraph (1) 

of subsection (g) of this section) by the filing in the court of appeals of the 

United States for the circuit in which the home office of the bank is located, 

or in the United States Court of Appeals for the District of Columbia Circuit, 

within thirty days after the date of service of such order, a written petition praying 

that the order of the agency be modified, terminated, or set aside. A copy of such 

petition shall be forthwith transmitted by the clerk of the court to the agency, and 

thereupon the agency shall file in the court the record in the proceeding, as provided in section 2112 of title 28 of the United States Code. Upon the filing of such 

petition, such court shall have jurisdiction, which upon the filing of the record 

shall except as provided in the last sentence of said paragraph (1) be exclusive, to 

affirm, modify, terminate, or set aside, in whole or in part, the order of the agency. 

Review of such proceedings shall be had as provided in chapter 7 of title 5 of 

the United States Code. The judgment and decree of the court shall be final, except that the same shall be subject to review by the Supreme Court upon certiorari, as provided in section 1254 of title 28 of the United States Code.

“ (3) The commencement of proceedings for judicial review under paragraph (2) 

of this subsection shall not, unless specifically ordered by the court, operate 

as a stay of any order issued by the agency.

“ (i) The appropriate Federal banking agency may in its discretion apply to 

the United States district court, or the United States court of any territory, within 

the jurisdiction of which the home office of the bank is located, for the enforcement of any effective and outstanding notice or order issued under this section, 

and such courts shall have jurisdiction and power to order and require com pliance herewith; but except as otherwise provided in this section no court shall 

have jurisdiction to affect by injunction or otherwise the issuance or enforcement 

of any notice or order under this section, or to review, modify, suspend, term inate, or set aside any such notice or order.

“ (j) Any director or officer, or former director or officer of an insured bank, or 

any other person, against whom there is outstanding and effective any notice or 

order (which is an order which has become final) served upon such director, 

officer, or other person under subsections (e)(5), (e)(7), (e)(8), or (g) of this 

section, and who (i) participates in any manner in the conduct of the affairs 

of the bank involved, or directly or indirectly solicits or procures, or transfers or 

attempts to transfer, or votes or attempts to vote, any proxies, consents, or authorizations in respect of any voting rights in such bank, or (ii) without the prior 

written approval of the appropriate Federal banking agency, votes for a director, 

serves or acts as a director, officer, or employee of any bank, shall upon conviction be fined not more than $5,000 or imprisoned for not more than one year, or 

both.

“ (k) As used in this section (1) the terms ‘cease-and-desist order which has 

become final’ and ‘order which has become final’ mean a cease-and-desist 

order, or an order, issued by the appropriate Federal banking agency with the 

consent of the bank or the director or officer or other person concerned, or with 

respect to which no petition for review of the action of the agency has been filed

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL BANKING LEGISLATION— 1966 103

and perfected in a court of appeals as specified in paragraph (2) of subsection

(h), or with respect to which the action of the court in which said petition is 

so filed is not subject to further review by the Supreme Court of the United States 

in proceedings provided for in said paragraph, or an order issued under paragraph

(1) of subsection (g) of this section, and (2) the term ‘violation’ includes without 

limitation any action (alone or with another or others) for or toward causing, 

bringing about, participating in, counseling, or aiding or abetting a violation.

“ (I) Any service required or authorized to be made by the appropriate Federal 

banking agency under this section may be made by registered mail, or in such 

other manner reasonably calculated to give actual notice as the agency may 

by regulation or otherwise provide. Copies of any notice or order served by the 

agency upon any State bank or any director or officer thereof or other person 

participating in the conduct of its affairs, pursuant to the provisions of this section, shall also be sent to the appropriate State supervisory authority.

“ (m) In connection with any proceeding under subsection (b), (c)(1), or (e) of 

this section involving an insured State bank or any director or officer or other 

person participating in the conduct of its affairs, the appropriate Federal banking 

agency shall provide the appropriate State supervisory authority with notice of 

the agency’s intent to institute such a proceeding and the grounds therefor. Unless 

within such time as the Federal banking agency deems appropriate in the light of 

the circumstances of the case (which time must be specified in the notice prescribed in the preceding sentence) satisfactory corrective action is effectuated 

by action of the State supervisory authority, the agency may proceed as provided in this section. No bank or other party who is the subject of any notice or 

order issued by the agency under this section shall have standing to raise the 

requirements of this subsection as ground for attacking the validity of any such 

notice or order.

“ (n) In the course of or in connection with any proceeding under this section, 

the agency conducting the proceeding, or any member or designated representative thereof, including any person designated to conduct any hearing under this 

section, shall have the power to administer oaths and affirmations, to take or 

c^use to be taken depositions, and to issue, revoke, quash, or modify subpenas 

and subpenas duces tecum; and such agency is empowered to make rules and regula tio n s with respect to any such proceedings. The attendance of witnesses and 

the production of documents provided for in this subsection may be required from 

any place in any State or in any territory or other place subject to the jurisdiction 

of the United States at any designated place where such proceeding is being 

conducted. Any party to proceedings under this section may apply to the United 

States District Court for the District of Columbia, or the United States district 

court for the judicial district or the United States court in any territory in which 

such proceeding is being conducted, or where the witness resides or carries on 

business, for enforcement of any subpena or subpena duces tecum issued pursuant to this subsection, and such courts shall have jurisdiction and power to 

order and require compliance therewith. Witnesses subpenaed under this section 

shall be paid the same fees and mileage that are paid witnesses in the district 

courts of the United States. Any court having jurisdiction of any proceeding instituted under this section by an insured bank or a director or officer thereof, may 

allow to any such party such reasonable expenses and attorneys’ fees as it deems 

just and proper; and such expenses and fees shall be paid by the bank or from 

its assets.”

Sec. 203. Subsections (b) and (c) of section 10 of the Federal Deposit Insurance Act (12 U.S.C. 1820 (b), (c)) are amended to read as follows:

“ (b) The Board of Directors shall appoint examiners who shall have power, on 

behalf of the Corporation, to examine any insured State nonmember bank (except 

a District bank), any State nonmember bank making application to become an 

insured bank, and any closed insured bank, whenever in the judgment of the 

Board of Directors an examination of the bank is necessary. In addition to the 

examinations provided for in the preceding sentence, such examiners shall have 

like power to make a special examination of any State member bank and any 

national bank or District bank, whenever in the judgment of the Board of Directors

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
104 FEDERAL DEPOSIT INSURANCE CORPORATION

such special examination is necessary to determine the condition of any such 

bank for insurance purposes. In making examinations of insured banks, examiners appointed by the Corporation shall have power on behalf of the Corporation 

to make such examinations of the affairs of all affiliates of such banks as shall be 

necessary to disclose fully the relations between such banks and their affiliates 

and the effect of such relations upon such banks. Each examiner shall have 

power to make a thorough examination of all of the affairs of the bank and its 

affiliates, and shall make a full and detailed report of the condition of the bank 

to the Corporation. The Board of Directors in like manner shall appoint claim 

agents who shall have power to investigate and examine all claims for insured 

deposits. Each claim agent shall have power to administer oaths and affirmations 

and to examine and to take and preserve testimony under oath as to any matter 

in respect to claims for insured deposits, and to issue subpenas and subpenas 

duces tecum, and, for the enforcement thereof, to apply to the United States district court for the judicial district or the United States court in any territory in 

which the main office of the bank or affiliate thereof is located, or in which the 

witness resides or carries on business. Such courts shall have jurisdiction and 

power to order and require compliance with any such subpena.

“ (c) In connection with examinations of insured banks, and affiliates thereof, 

the appropriate Federal banking agency, or its designated representatives, shall 

have the power to administer oaths and affirmations and to examine and to take 

and preserve testimony under oath as to any matter in respect of the affairs or 

ownership of any such bank or affiliate thereof, and to issue subpenas and subpenas duces tecum, and, for the enforcement thereof, to apply to the United 

States district court for the judicial district or the United States court in any 

territory in which the main office of the bank or affiliate thereof is located, or in 

which the witness resides or carries on business. Such courts shall have jurisdiction and power to order and require compliance with any such subpena. For purposes of this section, the term ‘affiliate’ shall have the same meaning as where 

used in section 2(b) of the Banking Act of 1933 (12 U.S.C. 221 a(b)) except that 

the term ‘member bank’ in said section 2(b) shall be deemed to refer to an insured bank.”

Sec. 204. The first five sentences of section 8(a) of the Federal Deposit Insurance Act (12 U.S.C. 1818(a)) are amended to read as follows:

“ Sec. 8. (a) Any insured bank (except a national member bank or State member bank) may, upon not less than ninety days’ written notice to the Corporation, 

terminate its status as an insured bank. Whenever the Board of Directors shall 

find that an insured bank or its directors or trustees have engaged or are engaging in unsafe or unsound practices in conducting the business of such bank, or 

is in an unsafe or unsound condition to continue operations as an insured bank, 

or violated an applicable law, rule, regulation or order, or any condition imposed 

in writing by the Corporation in connection with the granting of any application 

or other request by the bank, or any written agreement entered into with the Corporation, the Board of Directors shall first give to the Comptroller of the Currency 

in the case of a national bank or a district bank, to the authority having supervision of the bank in the case of a State bank, and to the Board of Governors of 

the Federal Reserve System in the case of a State member bank, a statement with 

respect to such practices or violations for the purpose of securing the correction 

thereof and shall give a copy thereof to the bank. Unless such correction shall be 

made within one hundred and twenty days, or such shorter period not less than 

twenty days fixed by the Corporation in any case where the Board of Directors in 

its discretion has determined that the insurance risk of the Corporation is unduly 

jeopardized, or fixed by the Comptroller of the Currency in the case of a national 

bank, or the State authority in the case of a State bank, or Board of Governors 

of the Federal Reserve System in the case of a State member bank as the case 

may be, the Board of Directors, if it shall determine to proceed further, shall give 

to the bank not less than thirty days’ written notice of intention to terminate the 

status of the bank as an insured bank, and shall fix a time and place for a hearing before the Board of Directors or before a person designated by it to conduct

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL BANKING LEGISLATION— 1966 105

such hearing, at which evidence may be produced, and upon such evidence the 

Board of Directors shall make written findings which shall be conclusive. If the 

Board of Directors shall find that any unsafe or unsound practice or condition or 

violation specified in such statement has been established and has not been corrected within the time above prescribed in which to make such corrections, the 

Board of Directors may order that the insured status of the bank be terminated 

on a date subsequent to such finding and to the expiration of the time specified 

in such notice of intention. Unless the bank shall appear at the hearing by a duly 

authorized representative, it shall be deemed to have consented to the termination of its status as an insured bank and termination of such status thereupon 

may be ordered. Any insured bank whose insured status has been terminated by 

order of the Board of Directors under this subsection shall have the right of judicial review of such order only to the same extent as provided for the review of 

orders under subsection (h) of this section.”

Sec. 205. Subsection “ Fourth” of section 9 of the Federal Deposit Insurance 

Act (12 U.S.C. 1819 “ Fourth” ) is amended to read as follows:

“ Fourth. To sue and be sued, complain and defend, in any court of law or 

equity, State or Federal. All suits of a civil nature at common law or in equity to 

which the Corporation shall be a party shall be deemed to arise under the laws 

of the United States, and the United States district courts shall have original jurisdiction thereof, without regard to the amount in controversy; and the Corporation 

may, without bond or security, remove any such action, suit, or proceeding from 

a State court to the United States district court for the district or division embracing the place where the same is pending by following any procedure for 

removal now or hereafter in effect, except that any such suit to which the Corporation is a party in its capacity as receiver of a State bank and which involves 

only the rights or obligations of depositors, creditors, stockholders, and such 

State bank under State law shall not be deemed to arise under the laws of the 

United States. No attachment or execution shall be issued against the Corporation or its property before final judgment in any suit, action, or proceeding in any 

State, county, municipal, or United States court. The Board of Directors shall 

designate an agent upon whom service of process may be made in any State, 

Territory, or jurisdiction in which any insured bank is located.”

Sec. 206. Nothing contained in this title shall be construed to repeal, modify, 

or affect the provisions of section 19 of the Federal Deposit Insurance Act (12 

U.S.C. 1829).

Sec. 207. Section 30 of the Banking Act of 1933 (12 U.S.C. 77) is hereby repealed.

TITLE III— INCREASE IN INSURANCE LIMIT

Federal Deposit Insurance Corporation 

Sec. 301. (a) The first sentence of section 3(m) of the Federal Deposit Insurance Act (12 U.S.C. 1813(m)) is amended by changing “ $103000” to read 

“ $15,000” .

(b) The first sentence of section 7(i) of the Federal Deposit Insurance Act (12 

U.S.C. 1817 (i)) is amended by changing “ $10,000” to read “ $15,000” .

(c) The last sentence of section 11(a) of the Federal Deposit Insurance Act (12 

U.S.C. 1821(a)) is amended to read: “ The maximum amount of the insured deposit of any depositor shall be $15,000.”

(d) The fifth sentence of section 11 (i) of the Federal Deposit Insurance Act (12 

U.S.C. 1821 (i)) is amended by changing “ $10,000” to read “ $15,000” .

(e) The amendments made by this section shall not be applicable to any claim 

arising out of the closing of a bank where such closing is prior to the date of 

enactment of this Act.

Federal Savings and Loan Insurance Corporation 

Sec. 302. (a) Section 401(b) of title IV of the National Housing Act (12 U.S.C. 

1724(b)) is amended by changing “ $10,000” to read “ $15,000” each place it

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
106 FEDERAL DEPOSIT INSURANCE CORPORATION

appears therein.

(b) Section 405(a) of title IV of the National Housing Act (12 U.S.C. 1728(a)) is 

amended by changing “ $10,000” to read “ $15,000” .

(c) The amendments made by this section shall not be applicable to any claim 

arising out of a default, as defined in section 401(d) of the National Housing Act, 

where the appointment of a conservator, receiver, or other legal custodian as set 

forth in that section becomes effective prior to the date of enactment of this Act.

Administrative Authority 

Sec. 303. (a) Section 3(m) of the Federal Deposit Insurance Act (12 U.S.C. 

1813(m)) is amended by adding the following new sentence at the end: “ For the 

purpose of clarifying and defining the insurance coverage under this subsection 

and subsection (i) of section 7, the Corporation is authorized to define, with such 

classifications and exceptions as it may prescribe, terms used in those subsections, in subsection (p) of section 3, and in subsections (a) and (i) of section 11 

and the extent of the insurance coverage resulting therefrom.”

(b) Section 405(a) of title IV of the National Housing Act (12 U.S.C. 1728(a)) is 

amended by adding the following new sentence at the end: “ For the purpose of 

clarifying and defining the insurance coverage under this subsection and subsection (b) of section 401, the Corporation is authorized to define, with such classifications and exceptions as it may prescribe, terms used in those subsections and 

in subsection (c) of section 401 and the extent of the insurance coverage resulting therefrom.”

TITLE IV— EXPIRATION

Sec. 401. The provisions of titles I and II of this Act and any provisions of iaw 

enacted by said titles shall be effective only during the period ending at the 

close of June 30, 1972. Effective upon the expiration of such period, each provision of law amended by either of such titles is further amended to read as it did 

immediately prior to the enactment of this Act and each provision of law repealed 

by either of such titles in reenacted.

Approved October 16, 1966.

RULES AND REGULATIONS OF THE CORPORATION AND

STATEMENTS OF GENERAL POLICY— 1966

TITLE 12— BANKS AND BANKING 

CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION

PART 336— EMPLOYEE RESPONSIBILITIES AND CONDUCT

The Federal Deposit Insurance Corporation hereby adopts a new Part 336 of its 

rules and regulations (12 CFR Part 301, et seq.), pursuant to the provisions of 

Executive Order 11222 of May 8, 1965.

The new Part 336 reads as follows:

SUBPART A— GENERAL PROVISIONS 

Sec.

336.735-1 Purpose.

336.735-2 Definitions.

336.735-3 Effective date, distribution, and counseling.

SUBPART B— ETHICAL AND OTHER CONDUCT AND RESPONSIBILITIES OF 

EMPLOYEES

336.735-11 Gifts, entertainment, and favors.

336.735-12 Outside employment.

336.735-13 Financial interests.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
RULES AND REGULATIONS OF THE CORPORATION 107

336.735-14 Use of Corporation property.

336.735-15 Misuse of information.

336.735-16 Indebtedness.

336.735-17 Gambling, betting, and lotteries.

336.735-18 General conduct prejudicial to the Government.

336.735-19 Miscellaneous statutory provisions.

SUBPART C— ETHICAL AND OTHER CONDUCT AND RESPONSIBILITIES OF 

SPECIAL CORPORATION EMPLOYEES

336.735-21 Use of Corporation employment.

336.735-22 Use of inside information.

336.735-23 Coercion.

336.735-24 Gifts, entertainment, and favors.

336.735-25 Miscellaneous statutory provisions.

SUBPART D— STATEMENTS OF EMPLOYMENT AND FINANCIAL INTERESTS

336.735-31 Employees required to submit statements.

336.735-32 Employees not required to submit statements.

336.735-33 Time and place for submission of employees’ statements.

336.735-34 Supplementary statements.

336.735-35 Interests of employees’ relatives.

336.735-36 Information not known by employees.

336.735-37 Information prohibited.

336.735-38 Confidentiality of employees’ statements.

336.735-39 Effect of employees’ statements on other requirements.

336.735-40 Specific provisions of regulations for special Corporation employees.

336.735-41 Reviewing statements and reporting conflicts of interest.

336.735-42 Disciplinary and other remedial action.

Authority: The provisions of this Part 336 issued under E.O. 11222 of May 8,

1965, 30 F.R. 6469, 3 CFR, 1965 Supp.; 5 CFR 735.104.

SUBPART A— GENERAL PROVISIONS 

§336.735-1 Purpose.

The maintenance of unusually high standards of honesty, integrity, impartiality, 

and conduct by Corporation employees and special Corporation employees is 

essential to assure the proper performance of the Corporation business and the 

maintenance of confidence by citizens in their Government. The avoidance of 

misconduct and conflicts of interests on the part of Corporation employees and 

special Corporation employees through informed judgment is indispensable to 

the maintenance of these standards. To accord with these concepts, this part sets 

forth the Corporation’s regulations covering the Corporation’s employees and 

special Corporation employees, prescribing standards of conduct and responsibilities, and governing statements reporting employment and financial interests.

§336.735-2 Definitions.

In this part:

(a) “ Employee” means an officer or employee of the Corporation, but does not 

include a special Corporation employee.

(b) “ Executive order” means Executive Order 11222 of May 8, 1965.

(c) “ Person” means an individual, a bank, a corporation, a company, an association, a firm, a partnership, a society, a joint stock company, or any other 

organization or institution.

(d) “ Special Corporation employee” means a “ special Government employee” 

as defined in section 202 of Title 18 of the United States Code.

§336.735-3 Effective date, distribution, and counseling.

(a) This part and any amendment thereto shall be effective after approval by 

the Civil Service Commission and upon publication in the Federal Register.

(b) The Personnel Division of the Corporation shall distribute one copy (and

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
108 FEDERAL DEPOSIT INSURANCE CORPORATION

supply additional copies on request) of this part to every employee and every 

special Corporation employee within 90 days after the effective date, and to each 

new employee and special Corporation employee at the time of entrance on 

duty, and distribute to every employee and every special Corporation employee 

each calendar year thereafter a reminder of the basic provisions of this part.

(c) A Counselor designated herein and Deputy Counselors, appointed by the 

Chairman of the Board, shall be available for counseling and guidance respecting 

statutes and regulations affecting employee responsibility and conduct, including 

interpretations of the provisions of this part, and each employee a,nd special Corporation employee shall be notified of this service by the Personnel Division at 

the time he receives a copy of this part.

(d) The Assistant to the Chairman of the Board of Directors of the Corporation 

shall act as the Corporation’s Counselor.

SUBPART B— ETHICAL AND OTHER CONDUCT AND RESPONSIBILITIES OF

EMPLOYEES

§336.735-11 Gifts, entertainment, and favors.

(a) Except as provided in paragraph (b) of this section, an employee shall not 

solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment, 

loan, or any other thing of monetary value, from a person who:

(1) Has, or is seeking to obtain, contractual or other business or financial relations with the Corporation;

(2) Conducts operations or activities that are regulated or examined or may be 

regulated or examined by the Corporation;

(3) Has interests that may be substantially affected by the performance or nonperformance of his official duty.

(b) Paragraph (a) of this section shall not apply:

(1) Where obvious family or personal relationships govern (such as those between the parents, children, or spouse of the employee and the employee) when 

the circumstances make it clear that it is those relationships rather than the 

business of the persons concerned which are the motivating factors;

(2) To the acceptance of food, refreshments, and accompanying entertainment 

of nominal value on infrequent occasions in the ordinary course of a luncheon or 

dinner meeting or other function or on an inspection tour where an employee is 

properly in attendance;

(3) The acceptance of lodging on rare or infrequent occasions where an employee is properly in attendance and circumstances thereof are reported to the 

Corporation;

(4) To the acceptance of unsolicited advertising or promotional material, such 

as pens, pencils, note pads, calendars, and other items of nominal intrinsic value; 

and

(5) To the acceptance of loans from banks or other financial institutions on 

customary terms to finance proper and usual activities of employees, such as 

home mortgage loans. However, a Corporation examiner or assistant examiner 

shall not accept a loan or gratuity from any bank examined by him or any bank 

he has the authority to examine or from any person connected therewith (18 

U.S.C. 212 and 213).

(c) An employee shall avoid any action, whether or not specifically prohibited 

by this subpart which might result in, or create the appearance of:

(1) Using public office for private gain;

(2) Giving preferential treatment to any person;

(3) Impeding Corporation efficiency or economy;

(4) Losing complete independence or impartiality;

(5) Making a Corporation decision outside official channels; or

(6) Affecting adversely the confidence of the public in the integrity of the Corporation.

(d) An employee shall not solicit contributions from another employee for a 

gift to an employee in a superior official position. An employee in a superior official position shall not accept a gift presented as a contribution from employees

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
RULES AND REGULATIONS OF THE CORPORATION 109

receiving less salary than himself. An employee shall not make a donation as a 

gift to an employee in a superior official position (5 U.S.C. 113).

(e) An employee shall not accept a gift, present, decoration, or other thing 

from a foreign government unless authorized by Congress as provided by the 

Constitution and in 5 U.S.C. 114-115a.

§336.735-12 Outside employment.

(a) An employee shall not engage in outside employment or other outside activity not compatible with the full and proper discharge of the duties and responsibilities of his Corporation employment. Incompatible activities include but are 

not limited to:

(1) Acceptance of a fee, compensation, gift, payment of expense, or any other 

thing of monetary value in circumstances in which acceptance may result in, or 

create the appearance of, conflicts of interests; or

(2) Outside employment which tends to impair his mental or physical capacity 

to perform his Corporation duties and responsibilities in an acceptable manner.

(b) An employee shall not receive any salary or anything of monetary value 

from a private source as compensation for his services to the Corporation (18 

U.S.C. 209).

(c) A Corporation examiner or assistant examiner shall not perform any other 

service, for compensation, for any bank, or for any person connected therewith 

(18 U.S.C. 1909).

(d) Employees are encouraged to engage in teaching, lecturing, speaking and 

writing relating to the Corporation’s functions or responsibilities. However, an 

employee shall not, either for or without compensation, engage in any such 

activity that is dependent on information obtained as a result of his Corporation 

employment except when that information has been made available to the general public or will be made available on request, or when the Corporation Chairman gives written authorization for use of nonpublic information on the basis 

that the use is in the public interest. And no employee shall write for publication 

or accept invitations to speak before banking or other public organizations on 

matters concerning the Corporation without prior approval and prior clearance of 

their manuscript by the Corporation. In addition, an employee who is a Presidential appointee covered by section 401(a) of the Executive Order shall not 

receive compensation or anything of monetary value for any consultation, lecture, discussion, writing, or appearance, the subject matter of which is devoted 

substantially to the responsibilities, programs, or operations of the Corporation, 

or which draws substantially on official data or ideas which have not become 

part of the body of public information.

(e) An employee shall not engage in outside employment under a State or 

local government, except in accordance with Part 734 of the Civil Service Regulations (5 CFR Part 734).

(f) This section does not preclude an employee from:

(1) Receipt of bona fide reimbursement, unless prohibited by law, for actual 

expenses for travel and such other necessary subsistence as is compatible with 

this part for which no Corporation payment or reimbursement is made. However, 

an employee may not be reimbursed, and payment may not be made on his behalf, for excessive personal living expenses, or other personal benefits.

(2) Participation in the activities of National or State political parties not proscribed by law.

(3) Participation in the affairs of or acceptance of an award for a meritorious 

public contribution or achievement given by a charitable, religious, professional, 

social, fraternal, nonprofit educational and recreational, public service, or civic 

organization.

§336.735-13 Financial interests.

(a) An employee shall not:

(1) Own, directly or indirectly, or control the ownership of stock in an insured 

bank, without approval of the Board of Directors of the Corporation.

(2) Have a direct or indirect financial interest that conflicts substantially, or

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
110 FEDERAL DEPOSIT INSURANCE CORPORATION

appears to conflict substantially, with his Corporation duties and responsibilities; 

or

(3) Engage in, directly or indirectly, a financial transaction as a result of, or 

primarily relying on, information obtained through his Corporation employment.

(b) This section does not preclude an employee from having a financial interest or engaging in financial transactions to the same extent as a private citizen 

not employed by the Corporation so long as it is not prohibited by law, the 

Executive Order, this section, or the regulations in this part.

§336.735-14 Use of Corporation property.

An employee shall not directly or indirectly use, or allow the use of, Corporation property of any kind, including property leased to the Corporation, for other 

than officially approved activities. An employee has a positive duty to protect and 

conserve Corporation property, including equipment, supplies, and other property 

entrusted or issued to him.

§336.735-15 Misuse of information.

For the purpose of furthering a private interest, an employee shall not, except 

as provided in §336.735-12(d), directly or indirectly use, or allow the use of, official information obtained through or in connection with his Corporation employment which has not been made available to the general public.

§336.735-16 Indebtedness.

An employee shall pay each just financial obligation in a proper and timely 

manner, especially one imposed by law such as Federal, State, or local taxes. 

For the purpose of this section, a “ just financial obligation” means one acknowledged by the employee or reduced to judgment by a court, and “ in a proper 

and timely manner” means in a manner that the Corporation will not be called 

upon to assist a creditor in the collection of a just financial obligation, and which 

the Corporation determines does not, under the circumstances, reflect adversely 

on it as the employer. In the event of dispute between an employee and an 

alleged creditor, this section does not require the Corporation to determine the 

validity or amount of the disputed debt.

§336.735-17 Gambling, betting, and lotteries.

An employee shall not participate, while on Corporation-owned or leased property or while on duty for the Corporation, in any gambling activity including the 

operation of a gambling device, in conducting a lottery or pool, in a game for 

money or property, or in selling or purchasing a numbers slip or ticket. However, 

this section does not preclude activities:

(a) Necessitated by an employee’s law enforcement duties; or

(b) Under section 3 of Executive Order 10927 and similar Corporation-approved 

activities.

§336.735-18 General conduct prejudicial to the Government.

An employee shall not engage in criminal, infamous, dishonest, immoral, or 

notoriously disgraceful conduct, or other conduct prejudicial to the Corporation.

§336.735-19 Miscellaneous statutory provisions.

Each employee shall acquaint himself with each statute that relates to his 

ethical and other conduct as an employee of the Corporation and of the Government. In addition to the statutes cited in the body of these regulations the attention of each employee is directed to the following statutory provisions:

(a) House Concurrent Resolution 175, 85th Congress, 2d Session, 72 Stat. B12, 

the “ Code of Ethics for Government Service.”

(b) Chapter 11 of title 18, United States Code, relating to bribery, graft, and 

conflicts of interest, as appropriate to the employees concerned.

(c) The prohibition against lobbying with appropriated funds (18 U.S.C. 1913).

(d) The prohibitions against disloyalty and striking (5 U.S.C. 118p, 118r).

(e) The prohibition against the employment of a member of a Communist organization (50 U.S.C. 784).

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
RULES AND REGULATIONS OF THE CORPORATION 111

(f) The prohibitions against (1) the disclosure of classified information (18 

U.S.C. 798, 50 U.S.C. 783); and (2) the disclosure of confidential information (18 

U.S.C. 1905).

(g) The provision relating to the habitual use of intoxicants to excess (5 U.S.C. 

640).

(h) The prohibition against the misuse of a Government vehicle (5 U.S.C. 78c).

(i) The prohibition against the misuse of the franking privilege (18 U.S.C. 1719). 

(j) The prohibition against the use of deceit in an examination or personnel

action in connection with Government employment (5 U.S.C. 637).

(k) The prohibition against fraud or false statements in a Government matter 

(18 U.S.C. 1001).

(I) The prohibition against mutilating or destroying a public record (18 U.S.C. 

2071).

(m) The prohibition against counterfeiting and forging transportation requests 

(18 U.S.C. 508).

(n) The prohibitions against (1) embezzlement of Government money or property (18 U.S.C. 641); (2) failing to account for public money (18 U.S.C. 643); and

(3) embezzlement of the money or property of another person in the possession 

of an employee by reason of his employment (18 U.S.C. 654).

(o) The prohibition against unauthorized use of documents relating to claims 

from or by the Government (18 U.S.C. 285).

(p) The prohibition against proscribed political activities— The Hatch Act (5 

U.S.C. 118i), and 18 U.S.C. 602, 603, 607, and 608.

(q) The prohibition against the disclosure of information by a bank examiner 

(18 U.S.C. 1906).

SUBPART C— ETHICAL AND OTHER CONDUCT AND RESPONSIBILITIES OF 

SPECIAL CORPORATION EMPLOYEES

§336.735-21 Use of Corporation employment.

A special Corporation employee shall not use his Corporation employment for 

a purpose that is, or gives the appearance of being, motivated by the desire for 

private gain for himself or another person, particularly one with whom he has 

family, business, or financial ties.

§336.735-22 Use of inside information.

(a) A special Corporation employee shall not use inside information obtained 

as a result of his Government employment for private gain for himself or another 

person either by direct action on his part or by counsel, recommendation, or suggestion to another person, particularly one with whom he has family, business, or 

financial ties. For the purpose of this section, “ inside information” means information obtained under Corporation authority which has not become part of the 

body of public information.

(b) A special Corporation employee may teach, lecture, or write in a manner 

not inconsistent with §336.735-12(d) in regard to employees.

§336.735-23 Coercion.

A special Corporation employee shall not use his Corporation employment to 

coerce, or give the appearance of coercing, a person to provide financial benefit 

to himself or another person, particularly one with whom he has family, business, 

or financial ties.

§336.735-24 Gifts, entertainment, and favors.

(a) Except as provided in paragraph (b) of this section, a special Corporation 

employee, while so employed or in connection with his employment, shall not 

receive or solicit from a person having business with this Corporation anything of 

value as a gift, gratuity, loan, entertainment, or favor for himself or another person, particularly one with whom he has family, business, or financial ties.

(b) Exemptions to paragraph (a) of this section are the same as those authorized to employees under §336.735-11 (b).

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
112 FEDERAL DEPOSIT INSURANCE CORPORATION

§336.735-25 Miscellaneous statutory provisions.

Each special Corporation employee shall acquaint himself with each statute 

that relates to his ethical and other conduct as a special Corporation employee 

of the Corporation and of the Government. In addition to the statutes cited in the 

body of the regulations in this part, the attention of each special Corporation 

employee is directed to the statutory provisions listed in §336.735-19.

SUBPART D— STATEMENTS OF EMPLOYMENT AND FINANCIAL INTERESTS

§336.735-31 Employees required to submit statements.

(a) Except as provided in §336.735-32, the following employees shall file statements of employment and financial interests:

(1) Employees paid at a level of the Federal Executive Salary Schedule established by the Federal Executive Salary Act of 1964, as amended.

(2) Employees receiving compensation equivalent to that prescribed in the 

General Schedule established by the Classification Act of 1949, as amended, for 

grade GS-16 or higher.

(3) Employees subject to the provisions of §336.735-13(a)(1).

(4) The purchasing officer of the Corporation, all bank assessment auditors, 

and all field liquidators.

(b) Additions to, deletions from, and other amendments of the list of positions 

in subparagraph (4) of paragraph (a) of this section are effective upon actual 

notification to the incumbents. The amended subparagraph (4) of paragraph (a) 

of this section shall be submitted annually for publication in the Federal Register.

§336.735-32 Employees not required to submit statements.

Employees subject to separate reporting requirements under section 401 of the 

Executive Order and 12 U.S.C. 1812.

§336.735-33 Time and place for submission of employees’ statements.

An employee required to submit statements of employment and financial interest under §336.735-31 shall submit that statement to the Assistant to the Chairman of the Board of Directors not later than:

(a) Ninety days after the effective date of the agency regulations issued under 

this part if employed on or before that effective date; or

(b) Thirty days after his entrance on duty, but not earlier than ninety days 

after the effective date, if appointed after that effective date.

§336.735-34 Supplementary statements.

Changes in, or additions to, the information contained in an employee’s statement of employment and financial interests shall be reported in a supplementary 

statement at the end of the quarter in which the changes occur and shall reflect 

all changes occurring during the quarter. Quarters end March 31, June 30, September 30, and December 31. If there are no changes or additions in a quarter, 

a negative report is not required. However, for the purpose of annual review, a 

supplementary statement, negative or otherwise, is required as of June 30 each 

year.

§336.735-35 Interests of employees’ relatives.

The interest of a spouse, minor child, or other member of an employee’s immediate household is considered to be an interest of the employee. For the purpose 

of this section, “ member of an employee’s immediate household” means those 

blood relations of the employee who are residents of the employee’s household.

§336.735-36 Information not known by employees.

If any information required to be included on a statement of employment and 

financial interests or supplementary statement, including holdings placed in trust, 

is not known to the employee but is known to another person, the employee shall 

request that other person to submit information in his behalf.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
RULES AND REGULATIONS OF THE CORPORATION 113

§336.735-37 Information prohibited.

This subpart does not require an employee to submit on a statement of employment and financial interests or supplementary statement any information relating to the employee’s connection with, or interest in, a professional society or 

a charitable, religious, social, fraternal, recreational, public service, civic, or 

political organization or a similar organization not conducted as a business enterprise. For the purpose of this section, educational and other institutions doing 

research and development or related work involving grants of money from or 

contracts with the Government are deemed “ business enterprises” and are required to be included in an employee’s statement of employment and financial 

interests.

§336.735-38 Confidentiality of employees’ statements.

The Corporation shall hold statements of employment and financial interest, 

and each supplementary statement, in confidence. The Corporation may not disclose information from a statement except as the Chairman of the Corporation or 

the Civil Service Commission may determine for good cause shown.

§336.735-39 Effect of employees’ statements on other requirements.

The statements of employment and financial interests and supplementary statements required of employees are in addition to, and not in substitution for, or in 

derogation of, any similar requirement imposed by law, order, or regulation. The 

submission of a statement or supplementary statement by an employee does not 

permit him or any other person to participate in a manner in which his or the 

other person’s participation is prohibited by law, order, or regulation.

§336.735-40 Specific provisions of regulations for special Corporation employees.

(a) Except as provided in paragraph (b) of this section, each special Corporation employee shall submit a statement of employment and financial interests 

which reports:

(1) All other employment; and

(2) All financial interests which relate either directly or indirectly to the duties 

and responsibilities of the special Corporation employee.

(b) The Chairman of the Corporation may waive the requirement in paragraph 

(a) of this section for the submission of a statement of employment and financial 

interests in the case of a special Corporation employee, who is not a consultant 

or an expert when the Chairman finds that the duties of the position held by that 

special Corporation employee are of a nature and at such a level of responsibility 

that the submission of the statement by the incumbent is not necessary to protect 

the integrity of the Corporation. For the purpose of this paragraph, “ consultant” 

and “ expert” have the meanings given those terms by Chapter 304 of the Federal 

Personnel Manual, but do not include a physician, dentist, or allied medical specialist whose services are procured to provide care and service to patients.

(c) A statement of employment and financial interests required to be submitted 

under this section shall be submitted not later than the time of employment of the 

special Corporation employee. Each special Corporation employee shall keep his 

statement current throughout his employment with the Corporation by the submission of supplementary statements.

§336.735-41 Reviewing statements and reporting conflicts of interest.

(a) When a statement submitted under this subpart or information from other 

sources indicates a conflict between the interests of an employee or special Corporation employee and the performance of his services for the Corporation, the 

Counselor designated in the regulations in this part shall investigate and dispose 

of the matter in such manner as he may deem appropriate. When the conflict or 

appearance of conflict is not resolved by the Counselor, the information concerning the conflict or appearance of conflict shall be reported to the Chairman of 

the Board of Directors.

(b) The employee or special Corporation employee concerned shall have a reasonable opportunity, orally and/or in writing to explain the conflict or appearance 

of conflict.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
114 FEDERAL DEPOSIT INSURANCE CORPORATION

§336.735-42 Disciplinary and other remedial actions.

(a) A violation of the regulations in this part by an employee or special Corporation employee may be cause for appropriate disciplinary action which may 

be in addition to any penalty prescribed by law.

(b) When, after consideration of the explanation of the employee or special 

Corporation employee provided by §336.735-41, the Chairman of the Board decides that remedial action is required, he shall take immediate action to end the 

conflicts or appearance of conflicts of interest. Remedial action includes, but is 

not limited to:

(1) Changes in assigned duties;

(2) Divestment by the employee or special Corporation employee of his conflicting interest;

(3) Disciplinary action; or

(4) Disqualification for a particular assignment.

Remedial action, whether disciplinary or otherwise, shall be effected in accordance with any applicable law, Executive orders, and regulations.

This Part 336 was approved by the Civil Service Commission on February 11,

1966.

Effective date. This Part 336 shall become effective upon publication in the 

Federal Register.

[F.R. Doc. 66-4022; Filed, Apr. 13, 1966; 8:47 a.m.]

TITLE 12— BANKS AND BANKING 

CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION

SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY

PART 329— PAYMENT OF DEPOSITS AND INTEREST THEREON BY INSURED

NONMEMBER BANKS

Miscellaneous Amendments

1. Effective July 20, 1966, §329.1 of the rules and regulations of the Federal 

Deposit Insurance Corporation (12 CFR 329.1) is amended by inserting a new 

paragraph as follows:

§329.1 Definitions.

* * * * *

(f) Multiple maturity time deposit. The term “ multiple maturity time deposit” 

means any time deposit (1) that is payable at the depositor’s option on more than 

one date, whether on a specified date or at the expiration of a specified time after 

the date of deposit (e.g., a deposit payable at the option of the depositor either 3 

months or 6 months after the date of deposit), (2) that is payable after written 

notice of withdrawal, or (3) with respect to which the underlying instrument or 

contract or any informal understanding or agreement provides for automatic renewal at maturity.

2. Effective July 20, 1966, §329.6 of the rules and regulations of the Federal 

Deposit insurance Corporation (12 CFR 329.6) is amended to read as follows:

§329.6 Maximum rates '2of interest payable on time and savings deposits by insured nonmember banks.

(a) Time deposits. (1) No insured nonmember bank shall pay interest accruing 

at a rate in excess of 51/2 percent per annum, compounded quarterly,13 regardless 

of the basis upon which such interest may be computed, on any time deposit, 

subject, however, to the provisions of subparagraphs (2) and (3) of this paragraph.

(2) No insured nonmember bank shall pay interest accruing at a rate in excess 

of 5 percent per annum, compounded quarterly,13 regardless of the basis upon 

which such interest may be computed, on any multiple maturity time deposit received on or after July 20, 1966, which is payable only 90 days or more after the

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
RULES AND REGULATIONS OF THE CORPORATION 115

date of deposit or 90 days or more after the last preceding date on which it might 

have been paid.

(3) No insured nonmember bank shall pay interest accruing at a rate in excess 

of 4 percent per annum, compounded quarterly,13 regardless of the basis upon 

which such interest may be computed, on any multiple maturity time deposit received on or after July 20, 1966, which is payable less than 90 days after the 

date of deposit or less than 90 days after the last preceding date on which it 

might have been paid.

(b) Savings deposits. No insured nonmember bank shall pay interest accruing 

at a rate in excess of 4 percent per annum, compounded quarterly,13 regardless 

of the basis upon which such interest may be computed, on any savings deposit.

12 The m axim um rates of in terest payable by insured nonm em ber banks on tim e and savings 

deposits as prescribed herein are not a p p lica b le to any dep osit w hich is payable only at an office 

of an insured nonm em ber bank located outside of the States of the U nited States and the D istrict 

of C olum bia.

13 This lim ita tio n is not to be in terpreted as preventing the com pounding of interest at other than 

qua rterly in tervals: P rovided, That the aggregate am ount of such interest so com pounded does not 

exceed the aggregate am ount of in terest at the rate above prescribed when com pounded quarterly.

(Sec. 9, 64 Stat. 881; 12 U.S.C. 1819 (Interprets or applies sec. 18, 64 Stat. 891; 

12 U.S.C. 1828))

[F.R. Doc. 66-7887; Filed, July 20, 1966; 8:45 a.m.]

TITLE 12— BANKS AND BANKING 

CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION

SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY

PART 329— PAYMENT OF DEPOSITS AND INTEREST THEREON BY INSURED 

NONMEMBER BANKS

Miscellaneous Amendments

1. Effective September 26, 1966, §329.0 of the rules and regulations of the Federal Deposit Insurance Corporation (12 CFR 329.0) is amended to read as follows:

§329.0 Scope.

The regulation contained in this part relates to the payment of deposits and 

interest thereon by insured nonmember banks. This part is not applicable to 

banks which are members of the Federal Reserve System. Regulation Q (Part 217 

of this title), prescribed by the Board of Governors of the Federal Reserve System for banks which are members of that System, is not applicable to insured 

banks which are not members of the Federal Reserve System, except to the extent that the State law of a particular State provides otherwise. The provisions 

of this part do not apply to any deposit in a bank located outside of, or payable 

only at a bank’s office which is located outside of, the States of the United States 

and the District of Columbia. Except as provided in §329.7, the provisions of this 

part do not apply to mutual savings banks or to guaranty savings banks operating in the State of New Hampshire so long as said guaranty savings banks operate substantially under and pursuant to the laws of the State of New Hampshire 

pertaining to mutual savings banks and do not engage in commercial banking.

2. Effective September 26, 1966, §329.6 of the rules and regulations of the Federal Deposit Insurance Corporation (12 CFR 329.6) is amended to read as follows:

§329.6 Maximum rates 7 of interest payable on time and savings deposits by

insured nonmember banks.

(a) Maximum rate of percent. No insured nonmember bank shall pay interest at a rate in excess of 51/2 percent per annum on any time deposit of $100,000 

or more, subject, however, to the provisions of paragraphs (b)(2) and (c)(1)(i) of 

this section.

(b) Maximum rate of 5 percent. No insured nonmember bank shall pay interest

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
116 FEDERAL DEPOSIT INSURANCE CORPORATION

at a rate in excess of 5 percent per annum (1) on any time deposit of less than 

$100,000, subject, however, to the provisions of paragraph (c)(1)(i) of this section, 

or (2) on any multiple maturity time deposit that is payable only 90 days or more 

after the date of deposit or 90 days or more after the last preceding date on 

which it might have been paid.

(c) Maximum rate of 4 percent. (1) No insured nonmember bank shall pay interest at a rate in excess of 4 percent per annum (i) on any multiple maturity time 

deposit that is payable less than 90 days after the date of deposit or less than 90 

days after the last preceding date on which it might have been paid, or (ii) on 

any savings deposit.

(2) In calculating the rate of interest paid, the effects of compounding of interest may be disregarded. An insured nonmember bank that elects to compound 

interest— either at the maximum permissible rate or at a lower rate— shall state 

the basis of compounding (such as semiannually, quarterly, monthly, weekly, 

daily, or continuously) in every advertisement, announcement, solicitation, and 

agreement relating to the rate of interest paid on a deposit.

12 The m axim um rates of interest payable by insured nonm em ber banks on tim e and savings 

deposits as prescribed herein are not a p p iica b ie to any dep osit w hich is payable only at an office 

of an insured nonm em ber bank located outside of the States of the United States and the D istrict 

of C olum bia.

3. Effective September 26, 1966, Part 329 of the rules and regulations of the 

Federal Deposit Insurance Corporation (12 CFR Part 329) is amended by adding 

at the end thereof the following new §329.7 to read as follows:

§329.7 Maximum rates 13of interest or dividends payable on deposits by insured

nonmember mutual savings banks.

(a) Definition. For the purpose of this section, the term “ mutual savings bank” 

includes any mutual savings bank and any guaranty savings bank which operates 

in the State of New Hampshire substantially under and pursuant to the laws of 

that State pertaining to mutual savings banks which does not engage in commercial banking.

(b) Maximum rates payable. For any time on or after October 1, 1966, no insured nonmember mutual savings bank shall pay interest or dividends at a rate 

in excess of 5 percent per annum on any deposit. Section 329.3(b), relating to 

modification of deposit contracts to conform to regulations, shall apply to insured 

nonmember mutual savings banks.

(c) Compounding interest. In calculating the rate of interest or dividends paid, 

the effects of compounding of interest or dividends may be disregarded. An insured nonmember mutual savings bank that elects to compound interest or dividends— either at the maximum permissible rate or at a lower rate— shall state 

the basis of compounding (such as semiannually, quarterly, monthly, weekly, daily, 

or continuously) in every advertisement, announcement, solicitation, and agreement relating to the rate of interest or dividends paid on a deposit.

(d) Grace periods in computing interest. An insured nonmember mutual savings 

bank may pay interest or dividends on a deposit received during the first ten (10) 

calendar days of any calendar month at the applicable maximum rate prescribed 

in paragraph (b) of this section calculated from the first day of such calendar 

month until such deposit is withdrawn or otherwise ceases to constitute a deposit 

upon which interest or dividends are payable; and an insured nonmember mutual 

savings bank may pay interest or dividends on a deposit withdrawn during the 

last 3 business days of any calendar month ending a regular quarterly or semiannual interest or dividend period at the applicable maximum rate prescribed in 

paragraph (b) of this section calculated to the end of such calendar month.

13 The m axim um rate of interest payable by insured nonm em ber m utual savings banks as prescrib e d herein is not a p p lica b le to any deposit w hich is payable only at an office of an insured 

nonm em ber m utual savings bank located outside of the States of the United States and the D istrict 

of C olum bia.

(Sec. 9, 64 Stat. 881; 12 U.S.C. 1819)

[F.R. Doc. 66-10509; Filed, Sept. 26, 1966; 8:45 a.m.]

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
RULES AND REGULATIONS OF THE CORPORATION 117

TITLE 12— BANKS AND BANKING 

CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION

SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY

PART 329— PAYMENT OF DEPOSITS AND INTEREST THEREON BY INSURED 

NONMEMBER BANKS

Maximum Rates of Interest or Dividends Payable on Deposits by Insured

Nonmember Mutual Savings Banks; Banks in Alaska

Effective October 1, 1966, §329.7 of the rules and regulations of the Federal Deposit Insurance Corporation (12 CFR 329.7) is amended by adding a new paragraph (e) as follows:

§329.7 Maximum rates of interest or dividends payable on deposits by insured

nonmember mutual savings banks.

** * * *

(e) Banks in Alaska. Notwithstanding paragraph (b) of this section, any insured 

nonmember mutual savings bank located in the State of Alaska may pay for any 

time on or after October 1, 1966, a rate of interest or dividends not in excess of 

51/4 percent per annum on any deposit and may continue to pay a higher rate of 

interest or dividends in accordance with any time certificate of deposit, savings 

certificate, or similar certificate issued by the bank prior to September 22, 1966, 

requiring maintenance of the deposit for a stated period or making the rate of 

interest or dividends dependent thereon, and on any renewals or extensions of 

such certificates on the same terms and conditions. For the purposes of paragraphs (c) and (d) of this section, the applicable maximum rate for any such 

bank located in the State of Alaska is that prescribed by this paragraph.

(Sec. 9, 64 Stat. 881; 12 U.S.C. 1819)

[F.R. Doc. 66-10707; Filed, Sept. 30, 1966; 8:45 a.m.]

TITLE 12— BANKS AND BANKING 

CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION

SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY

PART 327— ASSESSMENTS

PART 329— PAYMENT OF DEPOSITS AND INTEREST THEREON BY INSURED 

NONMEMBER BANKS

Miscellaneous Amendments

On September 29, 1966, a notice of proposed rule making was published in the 

Federal Register (31 F.R. 12727) stating that the Board of Directors of the Federal 

Deposit Insurance Corporation was considering the amendment of Parts 327 and 

329 of its rules and regulations. Interested persons were afforded an opportunity 

to participate in the rule making through the submission of comments. After consideration of all such relevant matter as was submitted by interested persons, the 

amendment as so proposed is hereby adopted, with certain changes, as set forth 

below:

1. Subparagraphs (2) and (4) of paragraph (b) of §327.2 are amended to read 

as follows:

§327.2 Classification of deposits.

* *

(b> * * *

(2) Tim e deposits, open account, being deposits, other than tim e certificates of

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
118 FEDERAL DEPOSIT INSURANCE CORPORATION

deposit, with respect to which there is in force a written contract with the depositor that neither the whole nor any part of such deposit may be withdrawn 

prior to the date of maturity, which shall not be less than 30 days after the date 

of the deposit, or prior to the expiration of the period of notice which must be 

given by the depositor in writing not less than 30 days in advance of withdrawals, 

including deposits such as Christmas club accounts and vacation club accounts, 

which are made under written contracts providing that no withdrawal shall be 

made until a certain number of periodic deposits have been made during a period 

of not less than 3 months, even though some of the deposits are made within 30 

days from the end of such period; and

(4) Savings deposits being deposits:

(i) Which consist of funds deposited to the credit of one or more individuals, 

or of a corporation, association, or other organization operated primarily for religious, philanthropic, charitable, educational, fraternal, or other similar purposes 

and not operated for profit, or in which the entire beneficial interest is held by 

one or more individuals or by such a corporation, association, or other organization; and

(ii) With respect to which the depositor is not required by the deposit contract 

but may at any time be required by the bank to give notice in writing of an intended withdrawal not less than 30 days before such withdrawal is made and 

which is not payable on a specified date or at the expiration of a specified time 

after the date of deposit.

2. Paragraphs (d) and (e) of §329.1 are amended to read as follows:

§329.1 Definitions.

(d) Time deposits, open account. The term “ time deposit, open account” means 

a deposit, other than a “ time certificate of deposit,” with respect to which there 

is in force a written contract with the depositor that neither the whole nor any 

part of such deposit may be withdrawn, by check or otherwise, prior to the date 

of maturity, which shall be not less than 30 days after the date of the deposit,2 

or prior to the expiration of the period of notice which must be given by the depositor in writing not less than 30 days in advance of withdrawals.3

(e) Savings deposits. The term “ savings deposit” means a deposit:

(i) Which consists of funds deposited to the credit of one or more individuals, 

or of a corporation, association, or other organization operated primarily for religious, philanthropic, charitable, educational, fraternal, or other similar purposes 

and not operated for profit,4 or in which the entire beneficial interest is held by 

one or more individuals or by such a corporation, association, or other organization; and

(ii) With respect to which the depositor is not required by the deposit contract 

but may at any time be required by the bank to give notice in writing of an intended withdrawal not less than 30 days before such withdrawal is made5 and 

which is not payable on a specified date or at the expiration of a specified time 

after the date of deposit.

2 D eposits, such as C hristm as club accounts and vacation clu b accounts, w hich are made under 

w ritten contracts provid ing that no w ith dra w al shall be m ade u ntil a certa in num ber of p e rio d ic 

deposits have been made during a period of not less than 3 m onths, co n stitu te “ tim e deposits, open 

a cco u n t,” even though some of the deposits are m ade w ith in 30 days from the end of such period.

3 A de p o sit w ith respect to w hich the bank m erely reserves the right to require notice of not less 

than 30 days before any w ith dra w al is made is not a “ tim e deposit, open a cco u n t,” w ith in the 

m eaning of the above d e fin itio n .

1 D eposits in jo in t accounts of tw o or more in d ivid u a ls may be cla ssified as savings dep osits if 

they m eet the other requirem ents of the above d e fin itio n , but dep osits of a partnership operated for 

profit may not be so cla ssifie d . D eposits to the c re d it of an in d ivid u a l of funds in w hich any benefic ia l in terest is held by a co rporation, partnership, association, or other organization operated for

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
RULES AND REGULATIONS OF THE CORPORATION 119

profit or not operated p rim a rily fo r re lig io u s, p h ila n th ro p ic, ch aritable, edu cational, fraternal, or 

other s im ila r purposes may not be cla ssified as savings deposits.

5 The exercise by the bank of its rig h t to require such notice shall not cause the dep osit to cease 

to be a savings deposit.

3. Section 329.5 is amended to read as follows:

§329.5 Withdrawal of savings deposits.

(a) Requirements regarding notice of withdrawal. Whether or not interest is 

paid, no insured nonmember bank shall require or waive notice of withdrawal as 

to any amount or percentage of the savings deposits of any depositor unless it 

shall similarly require or waive such notice as to the same amount or percentage 

of the savings deposits of every other depositor which are subject to the same 

contractual provisions with respect to notice of withdrawal. If an insured nonmember bank, without requiring notice of withdrawal, pays interest that has 

accrued on a savings deposit during the preceding interest period, it shall, upon 

request and without requiring such notice, pay interest that has accrued during 

that period on the savings deposits of every other depositor. No insured nonmember bank shall change its practice with respect to the requiring or waiving 

of notice of withdrawal of savings deposits for the purpose of discriminating in 

favor of or against any depositor or depositors, and no such change of practice 

shall be made except pursuant to duly recorded action of the bank’s board of 

directors or a properly authorized committee thereof.

(b) Loans on security of savings deposits. If it is not the practice of an insured 

nonmember bank to require notice of withdrawal of savings deposits, no restrictions are imposed by this part upon loans by such bank to its depositors upon 

the security of such deposits. If it is the practice of an insured nonmember bank 

to require notice of withdrawal of a savings deposit, such bank may make loans 

to a depositor upon the security of such deposit, but the rate of interest on such 

loans shall be not less than 2 percent per annum in excess of the rate of interest 

paid on such deposit.

(c) Manner of payment of savings deposits. (1) Subject to the provisions of 

subparagraph (2) of this paragraph, an insured nonmember bank may permit 

withdrawals to be made from a savings deposit only through paym ent12 to the 

depositor himself (but not to any other person whether or not acting for the 

depositor), except:

(1) Where the deposit is represented by a passbook, to any person presenting 

the passbook;12

(ii) To an executor, administrator, trustee, or other fiduciary holding the savings deposit as part of a fiduciary estate, or to a person, other than the bank, 

holding a general power of attorney granted by the depositor;

(iii) To any person, including the bank, that has extended credit to the depositor on the security of the savings deposit, where such payment is made in order 

to enable the creditor to realize upon such security;

(iv) Pursuant to the order of a court of competent jurisdiction;

(v) Upon the death of the depositor, to any person authorized by law to receive 

the deposit; or

(vi) Interest paid to a third person pursuant to written instruction or assignment 

by the depositor, accepted by the bank, and placed on file therein.

(2) Notwithstanding the provisions of subparagraph (1) of this paragraph, no 

withdrawal shall be permitted by an insured nonmember bank to be made from 

a savings deposit, through payment to the bank itself or through transfer of credit 

to a demand or other deposit account of the same depositor (other than of interest on the savings deposit) if such payment or transfer is made pursuant to any 

advertised plan or any agreement, written or oral:

(i) Which authorizes such payments or transfers of credit to be made as a

>2 Paym ent from a savings dep osit or presentation of a passbook may be m ade over the counter, 

through the m ails, or otherw ise.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
120 FEDERAL DEPOSIT INSURANCE CORPORATION

normal practice in order to cover checks or drafts drawn by the depositor upon 

the bank; or

(ii) Which provides that such payments or transfers of credit shall be made at 

daily, monthly, or other such periodic intervals, except where made to enable the 

bank, on the depositor’s behalf, and pursuant to his written instruction, to effect 

the payment of installments of principal, interest, or other charges (including 

taxes or insurance premiums) due on a real estate loan or mortgage.

(3) Where a savings deposit is evidenced by a passbook, every withdrawal 

made upon presentation of the passbook shall be entered in the passbook at the 

time of withdrawal, and every other withdrawal from such a deposit shall be 

entered in the passbook as soon as practicable after the withdrawal is made.

§§329.6, 329.7 [Amended]

4. Footnote 12 in §329.6 and footnote 13 in §329.7 are redesignated as footnotes 13 and 14, respectively.

Effective date. This amendment is effective January 1, 1967.

[F.R. Doc. 66-13387; Filed, Dec. 14, 1966; 8:45 a.m.]

STATEMENT OF POLICY WITH RESPECT TO ADVERTISING

BY INSURED STATE NONMEMBER BANKS

Notice is hereby given that at a meeting of the Board of Directors of the 

Federal Deposit Insurance Corporation on December 14, 1966, the following statement of policy with respect to advertising by insured State nonmember banks 

was approved:

“ In recent years, competition among financial institutions for funds has become 

intense. An outgrowth of such competition has been the development and use 

by a few institutions of advertising practices that could be detrimental to the 

public’s attitude toward the nation’s financial system. In some respects, certain 

of the advertising practices are considered misleading.

“ Under the circumstances, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Federal Home Loan Bank Board, and the Board 

of Governors of the Federal Reserve System have concluded that it would be 

helpful, both to the financial institutions that they supervise and to the public, 

to outline certain principles that such institutions should follow in their advertisements directed toward attracting funds.

“ The supervisory agencies regard the following as minimum principles that 

financial institutions should follow in advertising for funds:

“ (1) Interest or dividend rates should be stated in terms of annual rates of 

simple interest, and the advertisement should state whether such earnings are 

compounded and, if so, the basis of compounding. Neither the total percentage 

return if held to final maturity nor the average annual rate achieved by compounding should be stated unless the annual rate of simple interest is presented 

with equal prominence.

“ (2) No reference should be made to ‘profit’ to the investor for use of his 

funds over a period of time.

“ (3) If an advertised rate is payable only on investments or deposits that 

meet fixed time or amount requirements, such requirements should be stated.

“ (4) No statement should be made implying that more than $15,000 of Federal insurance is provided for each depositor in a bank or each member in a 

savings and loan association.

“ The Securities and Exchange Commission has expressed the opinion that 

deposit and share accounts are subject to the anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934 and that advertisements by financial institutions that are contrary to such principles may violate 

those anti-fraud provisions.”

[F.R. Doc. 66-13882; Filed, Dec. 27, 1966; 8:51 a.m.]

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
STATE BANKING LEGISLATION— 1966 121

STATE BANKING LEGISLATION— 1966

In 1966, the legislatures of 24 States held regular sessions and 12 held

special sessions. Some of the more important State banking legislation enacted during 1966 is listed below on a State-by-State basis.

A L A B A M A

Authorization of branches in certain counties ____ HB 1-X

HB 21-X

HB 108-X

HB 240-X

Bank organization and branching fees ______ HB 51-X

A L A S K A

Investments of mutual savings banks __________________ HB 411

Fees in sales of bank securities _______________________ HB 488

Ownership of shares in banks ___________________________ HB 455

A R IZ O N A

Bank crimes ___________________________________________ HB 82

HB 83

Providing for business development corporations_________ SB 219

Loan limits, charges, and payments _____________________ HB 283

Bank holidays and hours _______________________________ HB 282

C O L O R A D O

State regulatory authority study ____________________ _____ HJR 1017

D E L A W A R E

Uniform Commercial Code enacted ___________ SB 223

G E O R G IA

Uniform Commercial Code amended ___________ _________ HB 322

Taxation of shares of ba n ks ______________________________ HB 337

Capital stock requirements ______________________________ SB 102

Uninvested trust funds ___________________________________ SB 124

Banking prohibited without charter or certificate ______ SB 89

Banking law amendments _______________________________ HB 301

Regulated Certificated Bank Act ________________________ SB 88

Study committee on banking la w s _______________________ HR 379

K E N T U C K Y

Banking law amendments _______________________________ SB 63

Bank investments ________________________________________ SB 196

Rates of interest on loans _______________________________ SB 131

Uniform Commercial Code amended ___________________ HB 456

Sale of Checks Act _____________________________________ HB 131

Taxation of banks ________________________________________ HB 318

Gifts to Minors Act _____________________________________ SB 52

L O U IS IA N A

Taxation of bank stock __________________________________ SB 213

Bank holidays ___________________________________________ HB 161

SB 74

Bank names _____________________________________________ SB 94

Bank lo a n s _______________________________________________ SB 95

Taxation of banks ________________________________________ SB 114

Sale of Checks Act _____________________________________ SB 225

M A IN E

Bank loan limitations ______________________ HB 1217-X

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
122 FEDERAL DEPOSIT INSURANCE CORPORATION

Investments by banks and trust companies ... SB 615-X 

M A R Y L A N D

Taxation of savings banks _____________________ SB 50

Dormant a c c o u n ts __ ___ HB 39

Bank holidays __________________________________ SB 436

Higher education loan program amendments SB 181

Stockholders’ meetings ..... ___ HB 186

Personal property leasing _________________________ HB 184

Disposition of unclaimed property ________________ SB 238

M A S S A C H U S E T T S

Security for trust funds ______________ HB 541

Certificates of deposit ___ _________________________ HB 4

Loans by trust companies to officers ________ SB 767

Deposits in savings banks ______ ___________________ HB 924

Trust company organization and branching ______ SB 758

Loan limitations of savings banks .... ________ HB 923

Authorizing mobile branch banking HB 2248

Investments by savings banks HB 926

SB 779

HB 3505

State examination of banks ________ HB 3507

Branching by savings banks _____ _______ HB 925

Insured student loans __________________________________ HB 3591

Supplemental interest on certain deposit accounts ____ HB 3808

Disclosure of interest charges ___________________________ HB 3840

Bank holding company regulation _______________________ HB 3285

M IC H IG A N

Change in location _______________________________________ SB 826

Limitations on loans, borrowing, and pledges ___________ HB 3440

Real estate loan requirements __________________________ HB 3441

Investment authority _______ __________________________ SB 984

Indemnity for officers involved in litigation ______________ HB 3442

Gifts to Minors Act _______________________________________ HB 3971

Rates of interest on loans ______________________________ HB 2579

M IS S IS S IP P I

Salaries of state bank examiners _______________________ SB 1923

Removal of stockholder information _____________________ SB 1922

Voting trusts prohibited __________________________________ SB 1868

Leasing safe deposit boxes _____________________________ SB 1867

Loans to directors and em ployees______________________ SB 1866

Joint deposits and deceased depositors’ accounts _____ SB 1876

Preferred stock __________________________________________ SB 1904

Restoration of capital stock _____________________________ SB 1973

Bank examinations _______________________________________ SB 1959

Loan limitations and data processing services __________ SB 1906

Loans by branch offices _________________________________ SB 1886

Sale of stock by d ire c to r_________________________________ SB 1885

Uniform Commercial Code enacted ______________________ HB 2

N E W J E R S E Y

Joint deposits in trust ___________________________________ AB 214

Person convicted serving as director or em ployee______ SB 291

Savings bank investment limitations _____________________ AB 239

AB 240

AB 285

Savings bank deposit limitation ___ AB 619

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
STATE BANKING LEGISLATION— 1966 123

Regulation of bank loans and investments ______________ AB 678

Loans to officers and directors _________________________ AB 274

Mortgage loans by savings banks _______________________ AB 275

Capital notes and debentures _________________________ AB 247

N E W M E X IC O

Uniform Commercial Code amended __________ HB 8

N E W Y O R K

Savings bank earnings ___________________________________ SB 2090

Savings bank loan reports ______________________________ SB 2088

Savings bank mortgage loans ____________________________ SB 2091

Bank loan limitations ____________________________________ SB 3448

Foreign bank loan limitations ____________________________ SB 2306

AB 2256

Powers of savings banks _________________________________ AB 4058

Duties of directors and trustee s _________________________ AB 2924

Savings bank investments ______________________________ AB 3810

AB 5358

Investment in FNMA securities _________________________ AB 5964

Savings banks acting as trustees _______________________ AB 2964

Taxation of banks ______________________________________ SB 4959

SB 4933

Banking law amendments _______________________________ AB 5935

Joint banking law s tu d y __________________________________ AR 182

SR 154

Savings bank real estate appraisals ______________ AB 5885

P E N N S Y L V A N IA

Goods and Services Instalment Sales A c t ________ HB 7-X

R H O D E IS L A N D

Investment limitations _______________________________ HB 1535

HB 1556

Lost passbooks and certificates _________________________ HB 1403

Sale of Checks Act _____________________________________ SB 532

Savings bank loans _____________________________________ HB 1606

S O U T H C A R O L IN A

Real estate loan lim itation s ______________________________ HB 2105

Uniform Commercial Code enacted ______________________ HB 1399

Instalment loans _________________________________________ HB 2085

S O U T H D A K O T A

State Banking Commission ____________________________ HB 559

558

Loan limitations _________________________________________ HB 561

Audit reports ____________________________________________ HB 557

V E R M O N T

Uniform Commercial Code enacted __________ SB 1-X

V IR G IN IA

Gifts to Minors Act amended ________________________ .... HB 250

Payable on death deposits ______________________________ HB 498

Money and Interest Study Commission _________________ HJR 101

Uniform Commercial Code amended _____________________ SB 381

Virginia Banking A c t _____________________________________ HB 229

W E S T V IR G IN IA

Digitized for 

Uniform Disposition of Unclaimed Property Act HB 205

FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
STATISTICS OF BANKS 

AND DEPOSIT INSURANCE

PART THREE

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
NUMBER OF BANKS AND BRANCHES

Table 101. Changes in number and classification of banks and branches in the United 

States (States and other areas) during 1966 

Table 102. Changes in number of commercial banks and branches during 1966, by 

State

Table 103. Number of banking offices in the United States (States and other areas), 

December 31, 1966

Grouped according to insurance status and class of bank, and by State

or area and type of office

Tabulations for all banks are prepared in accordance with an 

agreement among the Federal bank supervisory agencies. Provision 

of deposit facilities for the general public is the chief criterion for 

distinguishing between banks and other types of financial institutions. However, trust companies engaged in general fiduciary business though not in deposit banking are included; and credit unions 

and savings and loan associations are excluded except in the case 

of a few which accept deposits under the terms of special charters.

Branches include all offices of a bank other than its head office, 

at which deposits are received, checks paid, or money lent. Banking facilities separate from a banking house, banking facilities at 

government establishments, offices, agencies, paying or receiving 

stations, drive-in facilities and other facilities operated for limited 

purposes are defined as branches under the Federal Deposit Insurance Act, Section 3(o), regardless of the fact that in certain States, 

including several which prohibit the operation of branches, such 

limited facilities are not considered branches within the meaning 

of State law.

126 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Commercial banks include the following categories of banking 

institutions:

National banks;

Incorporated State banks, trust companies, and bank and trust 

companies, regularly engaged in the business of receiving deposits, 

whether demand or time, except mutual savings banks;

Stock savings banks, including guaranty savings banks in New 

Hampshire;

Industrial and Morris Plan banks which operate under general 

banking codes, or are specifically authorized by law to accept 

deposits and in practice do so, or the obligations of which are 

regarded as deposits for deposit insurance;

Special types of banks of deposit: cash depositories in South 

Carolina; regulated certificated banks, and a savings and loan company operating under Superior Court charter, in Georgia; government operated banks in American Samoa, North Dakota, and Puerto 

Rico; a cooperative bank, usually classified as a credit union, operating under a special charter in New Hampshire; a savings institution, known as a “ trust company,” operating under special charter 

in Texas; an employes’ mutual banking association in Pennsylvania; 

the Savings Banks Trust Company in New York; and branches of 

foreign banks engaged in a general deposit business in New York, 

Oregon, Washington, Puerto Rico, and Virgin Islands.

Private banks under State supervision, and such other private 

banks as are reported by reliable unofficial sources to be engaged 

in deposit banking.

Nondeposit trust companies include institutions operating under 

trust company charters which are not regularly engaged in deposit 

banking but are engaged in fiduciary business other than that incidental to real estate title or investment activities.

Mutual savings banks include all banks operating under State 

banking codes applying to mutual savings banks.

institutions excluded. Institutions in the following categories are 

excluded, though such institutions may perform many of the same 

functions as commercial and savings banks:

Banks which have suspended operations or have ceased to 

accept new deposits and are proceeding to liquidate their assets 

and pay off existing deposits;

Building and loan associations, savings and loan associations, 

credit unions, personal loan companies, and similar institutions, 

chartered under laws applying to such institutions or under genera! 

incorporation laws, regardless of whether such institutions are 

authorized to accept deposits from the public or from their members 

and regardless of whether such institutions are called “ banks” (a 

few institutions accepting deposits under powers granted in special 

charters are included);

Morris Plan companies, industrial banks, loan and investment 

companies, and similar institutions except those mentioned in the 

description of institutions included;

Branches of foreign banks, and private banks, which confine their 

business to foreign exchange dealings and do not receive “ deposits” 

as that term is commonly understood;

Institutions chartered under banking or trust company laws, but 

operating as investment or title insurance companies and not engaged in deposit banking or fiduciary activities;

Federal Reserve Banks and other banks, such as the Federal 

Home Loan Banks and the Savings and Loan Bank of the State of 

New York, which operate as rediscount banks and do not accept 

deposits except from financial institutions.

NUMBER OF BANKS AND BRANCHES 127

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T a b l e 1 0 1 . CHANGES IN NUMBER AND CLASSIFICATION OF BANKS AND BRANCHES IN THE UNITED STATES

(STATES AND OTHER AREAS) DURING 1966

Type of change

All banks Commercial banks and nondeposit trust companies Mutual savings banks

Total

Insured

Noninsured Total

Insured Noninsured

Total

Insured

Noninsured

Total

Members F. R.

System

Not

members

F. R.

System

Banks

of

deposit

Nondeposit

trust

companies1 National State

ALL BANKING OFFICES

N u m b e r of offices, D ecem b er 3 1 , 1 9 6 6 2 32,136 31,491 645 30,872 30,544 14,436 4,867 11,241 251 77 1,264 947 317

N u m b e r of offices, D ecem b er 3 1 , 1 9 6 5 2.......... .......... 30,958 30,306 652 29,736 29,393 13,801 4,738 10,854 278 65 1,222 913 309

N e t change during y e a r. . . . . .. +1,178 +1,185 -7 +1,136 +1,151 +635 +129 +387 -27 +12 +42 +34 +8

O ffices o p e n e d ............................................................................... 1,402 1,345 57 1,356 1,310 649 249 412 31 15 46 35 11

Banks.......................................................................... 125 101 24 123 99 25 4 70 23 1 2 2

Branches...................................................................... 1,277 1,244 33 1,233 1,211 624 245 342 8 14 44 33 11

O ffices clo se d ................................................................................. 224 193 31 220 190 87 31 72 27 3 4 3 1

Banks............................................................................ 158 130 28 156 129 55 20 54 24 3 2 1 1

Branches.................................................................... 66 63 3 64 61 32 11 18 3 2 2

Changes in clas s ific a tio n ......................................................... +33 -33 +31 +73 -89 +47 -31 +2 -2

Among banks............................................................... +26 -2 6 +24 + 14 -3 9 +49 -2 4 +2 - 2

Among branches.......................................... +7 - 7 +7 + 59 -5 0 _2 - 7

BANKS

N u m b e r of banks, D ecem ber 3 1 , 1 9 6 6 .................................... 14,291 13,873 418 13,785 13,541 4,799 1,350 7,392 196 48 506 332 174

N u m b e r of banks, D ecem b er 3 1 , 1 9 6 5 .................................... 14,324 13,876 448 13,818 13,547 4,815 1,405 7,327 221 50 506 329 177

N et change during y e a r................................................................. -33 -3 -30 -33 -6 -16 -55 +65 -25 -2 +3 -3

B anks beginning o p e ra tio n .. ...................................... 125 101 24 123 99 25 4 70 23 1 2 2

New banks ........................................................... 124 101 23 122 99 25 4 70 22 1 2 2

Banks added to count3............................................... 1 1 1 1

B anks ceasing o p e ra tio n .......................................................... 158 130 28 156 129 55 20 54 24 3 2 1 1

Absorptions, consolidations, and mergers (without

FDIC aid)................................................................... 133 122 11 131 121 52 20 49 9 1 2 1 1

Closed because of financial difficu ltie s.................. 8 7 1 8 7 2 5 1

Other liquidations........................................................ 6 1 5 6 1 1 4 1

Discontinued deposit operations.............................. 7 7 7 7

Banks deleted from count3........... .... 4 4 4 3 1

N oninsured banks becom ing in s u re d ............................... +26 -26 +24 +24 -24 + 2 -2

128 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
O th er changes in c las sifica tio n ............................................

National succeeding State bank...............................

State succeeding National bank...............................

Admission of insured bank to F. R. System...........

Withdrawal from F. R. System with continued

insurance..................................................................

Changes not involving n u m b er in any class:

Change in title ...............................................

Change in location........................................

Change in title and location.........................

Change in corporate powers:4

Granted trust powers................................

BRANCHES

N u m b e r of branches, D ecem ber 3 1 , 1 9 6 6 2.

N u m b e r of branches, D ecem ber 3 1 , 1 9 6 5 2

N et change during y e a r.....................................

B ranches opened fo r b u s in e ss ............................

Facilities designated by Treasury................

Absorbed banks converted to branches....

Branches replacing head offices relocated.

New branches5..............................................

Branches and facilities added to count3....

B ranches d is c o n tin u e d ...............................................

Facilities designated by Treasury...................

Branches5........................................................

Branches and facilities deleted from count3.

O th er changes in c las sificatio n ..........................................

Branches changing class as result of conversion..

Branches of insured banks withdrawing from F. R.

System....................................................................

Branches of noninsured banks admitted to insurance...................................................................

Branches transferred through absorption, consolidation or merger..............................................

Changes not involving n u m b er in any class:

Changes in operating powers of branches............

Branches transferred through absorption, consolidation or merger..............................................

Changes in title, location or name of location.......

147

18

10

17,845

16,634

+1,211

1,277

3

117

16

1,115

26

49

395

140

16

10

17,618

16,430

+1,188

1,244

3

116

16

1,104

5

6

46

11

+7

+7

49

393

227

204

+23

33

......

143

18

10

17,087

15,918

+1,169

1,233

3

116

16

1,073

25

64

6

46

12

49

382

138

16

10

17,003

15,846

+1,157

1,211

3

116

16

1,071

5

61

6

44

11

+7

+7

49

382

+14

+23

- 9

77

6

4

9,637

+651

624

2

70

6

545

1

32

6

21

5

+59

+38

+21

31

218

-1 3

+2

+4

-3 2

12

2

3,517

3,333

+184

245

""20

2

222

1

-50

-29

-3 7

+ 16

6

72

+25

-10

+7

- 4

+32

49

8

6

51

3,8

3,527

+322

342

1

26

8

304

3

12

6

-2

- 9

+37

+7

-3 7

12

92

55

57

29

15

+14

14

758

716

+42

44

1

42

1

615

584

+31

143

132

+11

11

1 Includes one trust company member of the Federal Reserve System.

2 Includes facilities established both at request of the Commanding Officer of Federal Government installations and designated by the U. S. Treasury, and a few seasonal branches that were not in operation

as of December 31.

3 Changes occurred prior to 1966, but were not included in the count as of December 31,1965.

4 Information available only for insured banks not members of the Federal Reserve System.

5 Excludes opening and closing of seasonal offices (except those newly established or permanently discontinued in 1966).

NUMBER OF BANKS AND BRANCHES 129

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 102. CHANGES IN NUMBER OF COMMERCIAL BANKS AND BRANCHES DURING 1966, BY STATE

State

Total United States.

50 States and D.C.. .

Other areas..............

State

A la b a m a .......................

A la s k a ............................

A riz o n a ..........................

A rk a n s a s ......................

C a lifo rn ia ......................

C o lo ra d o .......................

C o n n e c tic u t.................

D e law are ......................

D is tric t of C o lu m b ia . 

F lo rid a ...........................

G e o rg ia . 

H a w a ii... 

Id a h o .... 

Illin o is ... 

In d ia n a .

Io w a ..........

K a n s a s ... 

K e n tu cky. 

Louisiana. 

M aine. . ..

M a ry la n d ............

M assachuse tts.

M ic h ig a n .............

M in n e s o ta ..........

M is s is s ip p i.........

In o p e ratio n

Dec. 31, 1966 Dec. 31, 1965

B anks B ranches Banks Branches

13,785 17,087 13,818 15,918

13,766 16,907 13,803 15,753

19 180 15 165

267 186 263 163

12 55 12 53

18 282 18 258

246 119 246 108

193 2,537 199 2,424

252 9 250 8

67 336 68 313

20 71 20 65

14 94 15 88

447 19 443 18

426 211 429 196

11 120 12 116

25 140 25 127

1,061 5 1,051 5

419 507 422 471

674 250 673 235

601 53 599 49

348 243 346 232

220 286 214 248

44 183 44 175

122 415 122 394

162 614 161 568

347 988 354 893

723 9 722 10

190 259 196 221

Net change 

d u rin g 1966

-37

+ 4

+ 4

+ 2 

- 1

- 1

+ 4

- 3

- 1

+10

- 3

+ 1 

+ 2 

+ 2 

+ 6

+ 1

- 7 

+ 1

- 6

Branches

+1,169

+1,154

+ 15

23 

2

24 

11

+ 113

+

Beginning operation in 1966

Banks

122

117

5

O ther

B ranches

New

1,098

1,080

18

21

2

23

13

113

O ther

135

135

Ceasing ope ratio n in 1966

Banks

A bsorptions

137

137

O ther

Branches

64

61

3

130 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Missouri....................

Montana...................

Nebraska..................

Nevada.....................

New Hampshire.......

New Jersey..............

New Mexico..............

New York..................

North Carolina.........

North Dakota...........

Ohio...........................

Oklahoma.................

Oregon......................

Pennsylvania............

Rhode Island...........

South Carolina.........

South Dakota...........

Tennessee................

Texas........................

Utah..........................

Vermont....................

Virginia.....................

Washington..............

West Virginia............

Wisconsin.................

Wyoming...................

Other area

Pacific Islands.........

Panama Canal Zone

Puerto Rico..............

Virgin Islands...........

71 655 63

3 131

3

29 436 28

70 9 63

33 74 27

712 233 673

101 64 95

2,060 344 1,932

790 146 737

61 169 49

1,009 542 948

42 421 38

273 51 265

1,338 571 1,238

128 11 125

302 129 270

83 170 76

378 298 329

53 1,142 52

111 56 109

59 48 57

612 262 558

424 100 409

187

173 581 170

1 69 1

13

1 12

2 2

154 11 144

11 3 7

661

132

4399

75

232

64

336

137

167

537

420

52

546

11

128

167

298

1,147

55

48

251

95

190

591

691

126

+

8

7

8

1

2

1

+ 1 3 21

+

7

9

2

+

6

1

6

+ 39 3 35 5 4 1 + 6 6

-f 128 3 123 9 8 3 4 ++

53 48 9 9 4

12 1 11 1 12

+ 61 2 56

6

7

1

+ 4 5 1 1 + 8 1 8 + 100 81 25 25 6 + 3 3 + 32 1 30 2 2 + 7 4 3 3 + 49 2 46 3 2

+ 1 10 3 4 1 2 + 2 2 1 1 1 + 2 3 1 + 54 5 39 16 i6 1 + 15 11 5 5 1 3 + 3 11 2 1 1

+ 1

1

+ 10 2 121

2

+ 4 3

5

1

NUMBER OF BANKS AND BRANCHES 131

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T a b l e 1 0 3 . NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1966

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

State and typ e o f bank or office

All banks

Com m ercial banks and 

nondeposit tru s t com panies M utu al savings banks Percentage in s u re d 1

Total

In ­

sured

N o nin sure d Total

Insured N o ninsu red

Total

InsuredN oninsure d

All

banks

of

d e ­

posit

Com ­

m ercial

banks

of

deposit

M utual

savings

Total banks

M embe

Sysl

National

rs F. R.

tem

State

Not 

m e m ­

bers 

F. R. 

System

Banks

of

dep o s it2

N onde p o sit

tru s t

co m ­

p a n ie s 3

United States—all offices....... 32,136 31,491 645 30,872 30,544 14,436 4,867 11,241 251 77 1,264 947 317 98.2 99.2 74.9

B a n k s ............................................ 14,291 13,873 418 13,785 13,541 4,799 1,350 7,392 196 48 506 332 174 97.4 98.6 65.6

Unit banks.................................... 10,637 10,320 317 10,392 10,172 3,336 896 5 ,940 178 42 245 148 97 9 7 .4 9 8 .3 6 0.4

Banks operating branches............. 3 ,6 54 3 ,5 53 101 3,393 3 ,369 1,463 454 1,452 18 6 261 184 77 9 7 .4 9 9 .5 7 0.5

B ra n c h e s ..................................... 17,845 17,618 221 17,087 17,003 9,637 3,517 3,849 55 29 758 615 143 98.9 99.7 81.1

50 States and D. C.—all offices 31,934 31,318 616 30,673 30,374 14,404 4,867 11,103 223 76 1,261 944 317 98.3 99.3 74.9

B a n k s ............................................ 14,270 13,862 408 13,766 13,532 4,798 1,350 7,384 187 47 504 330 174 97.5 98.7 65.5

Unit banks.................................... 10,627 10,317 310 10,383 10,170 3,336 896 5,938 172 41 244 147 97 9 7 .5 9 8 .3 6 0.2

Banks operating branches............. 3 ,6 4 3 3 ,5 4 5 98 3,3 83 3,3 62 1,462 454 1,446 15 6 260 183 77 9 7 .5 9 9 .6 7 0.4

B ra n c h e s ..................................... 17,664 17,456 208 16,907 16,842 9,606 3,517 3,719 36 29 757 614 143 99.0 99.8 81.1

Other areas—all offices.......... 202 173 29 199 170 32 138 28 1 3 3 86.1 85.9 100.0

Banks ...................................... 21 11 10 19 9 1 8 9 1 2 2 55.0 50.0 100.0

Unit b a n k s.................................. 10 3 7 9 2 2 6 1 1 1 3 3 .3 2 5 .0 1 00.0

Banks operating branches 11 8 3 10 7 1 6 3 1 1 7 2 .7 7 0.0 1 00.0

B ra n c h e s ..................................... 181 162 19 180 161 31 130 19 1 1 89.5 89.4 100.0

State

Alabama—all offices............... 453 453 453 453 229 34 190 100.0 100.0

Banks .................... 267 267 267 267 87 24 156 100.0 100.0

U nit banks 210 210 210 210 54 18 138 1 00.0 1 00.0

Banks operating branches 57 57 57 57 33 6 18 100 .0 100.0

B ranches .................... 186 186 186 186 142 10 34 100.0 100.0

Alaska—all offices . . . 69 67 2 67 65 52 13 2 2 2 97.1 97.0 100.0

Banks .................... 14 12 2 12 10 5 5 2 2 2 85.7 83.3 100.0

Unit banks . . 6 4 2 4 2 2 2 6 6 .7 5 0 .0 1 00.0

Banks operating branches 8 8 8 8 5 3 1 00.0 1 00.0

Branches .................... 55 55 55 55 47 8 100.0 100.0

Arizona-—all offices 300 278 22 300 278 192 19 67 22 100.0 100.0

Banks ... 18 17 1 18 17 4 1 12 1 100.0 100.0

Unit banks 8 8 8 8 1 7 100 .0 1 00.0

Banks operating branches 10 9 1 10 9 3 1 5 1 1 00 .0 100.0

Branches . . 282 261 21 282 261 188 18 55 21 100.0 100.0

132 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Arkansas—all offices.............. 365 362 3 365 362 130 36

B an k s.............................................

U nit banks....................................

246

181

65

243

178

65

3

3

246

181

65

243

178

65

67

38

29

18

11

7

B ran ch es....................................... 119 119 119 119 63 18

California—all offices..............

B a n k s..............................................

2,730

193

2,719

187

11

6

2,730

193

2,719

187

1,922

91

484

14

Unit banks....................................

Banks operating branches.............

B ran ch es.......................................

U

119

2,537

261

70

117

2,532

224

4

2

5

74

119

2,537

261

70

117

2,532

224

44

47

1,831

122

2

12

470

Colorado—all offices............... 37 18

B a n k s.............................................. 252 215 37 252 215 117 17

244 207 37 244 207 113 16

8 8 8 8 4 1

B ra n ch es....................................... 9 9 9 9 5 1

Connecticut—all offices.......... 586 582 4 403 399 209 98

B an k s.............................................. 137 133 4 67 63 30 6

52 48 4 23 19 9

85 85 44

336

44

336

21 6

B ranches....................................... 449 449 179 92

Delaware—all offices.............. 101 101 91 91 9 32

B an k s .............................................. 22 22 20 20 5 2

Unit banks ............. 11 11 11 11 3

Banks operating branches............. 11 11 9 9 2 2

B ran ch es....................................... 79 79 71 71 4 30

D. C.—all offices...................... 108 108 108 108 66 34

B an k s .............................................. 14 14 14 14 9 3

Unit banks ................... 1 1 1 1 1

Banks operating branches............. 13 13 13 13 8 3

B ran ch es....................................... 94 94 94 94 57 31

Florida—all offices................... 466 463 3 466 463 210 8

B an k s.............................................. 447 444 3 447 444 198 8

Unit banks.................................... 429 426 3 429 426 187 8

Banks operating branches 18 18 18 18 11

B ra n ch es....................................... 19 19 19 19 12

Georgia—all offices.................

B a n k s..............................................

637

421

605

394

32

32

637

426

605

394

191

58

42

13

Unit banks.................................... 348 316 32 348 316 32 6

Banks operating branches ......... 78 78 78 78 26 7

B ranches .................................. 211 211 211 211 133 29

Hawaii—all offices ................. 131 126 5 131 126 45

Banks .................................... 11 7 4 11 7 2

Unit banks 3 3 3

Banks operating branches 8 7 1 8 7 2

Branches .............................. 120 119 1 120 119 43

196

158

129

313

58

231

84

81

78

245

238

372

323

2 1 99.5 99.5

2 1 99.2 99.2

2 1 9 8 .9 9 8.9

100.0 100.0

100.0 100.0

11 100.0 100.0

6 100.0 100.0

4 100.0 100.0

2 100.0 100.0

5 100.0 100.0

37 85.8 85.8

37 85.3 85.3

37 8 4 .8 8 4.8

100.0 100.0

100.0 100.0

3 1 183 183 99.5 99.3 100.0

3 1 70 70 97.8 95.5 100.0

3 1 29 29 94.1

100.0

86.4 100.0

41

113

41

113

100.0 100.0

100.0 100.0 100.0

10 10 100.0 100.0 100.0

2 2 100.0 100.0 100.0

100.0 100.0

2 2 100.0 100.0 100.0

8 8 100.0 100.0 100.0

100.0 100.0

100.0 100.0

100.0 100.0

100.0 100.0

100.0 100.0

2 1 99.6 99.6

2 1 99.6 99.6

2 1 9 9 .5 9 9.5

100.0 100.0

100.0 100.0

32 95.0 95.0

32 92.5 92.5

32 9 0.8 9 0.8

100.0 100.0

100.0 100.0

5 100.0 100.0

4 100.0 100.0

3

1 100.0 100.0

1 100.0 100.0

NUMBER OF BANKS AND BRANCHES 133

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T A B L E 1 0 3 . NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1966— CONTINUED

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

All banks C om m ercial banks and 

non deposit tru s t com panies M utual savings banks Percentage in s u re d 1

Insured N oninsured

State and typ e of bank o r office

Total

In ­

sured

N oninsured Total

Total

M em bers F. R. 

System

Not

m e m ­

bers

Banks

of

N onde p o sit

tru s t

co m ­

p a n ie s 3

Total

Insured

N oninsured

All

banks

of

deC om ­

m ercial

banks

of

M utual

savings

banks

National State

F. R. 

System

dep o s it2

posit de p o sit

Idaho—all offices.................... 165 165 165 165 111 31 23 100.0 100.0

B a n k s ............................................ 25 25 25 25 9

3

7 9 100.0 100.0

11 11 11 11 4 4 100.0 1 00.0

Banks operating branches............. U

140

14

140

n

140

14

140

6 3 100.0 1 00.0

B ra n c h e s ..................................... 102 24 14 100.0 100.0

Illinois—all offices................... 1,066 1,058 8 1,066

1,061

1,057

4

1,058

1,053

1,049

4

5

427 103 528 5 3 99.5 99.5

B a n k s ............................................ 1,061

1 ,0 57

4

1,053

1,0 49

8 422 103 528 5 3 99.5 99.5

Unit banks.................................... 8 418

4

103 528 3 9 9 .5 99.5

Banks operating branches............. 4 1 00.0 1 00.0

B ra n c h e s ..................................... 5 5 5 5 100.0 100.0

Indiana—all offices. ... 930 926 4 926 922 393 150 379 3 1 4 4 99.7 99.7 100.0

B a n k s ............................................ 423 419 4 419 415 123 83 209 3 1

1

4 4 99.3 99.3 100.0

Unit banks .................................. 251 247 4 247

172

243

172

59 55 129 3 4 4 9 8.8 9 8.8 100.0

Banks operating branches............. 172 172 64

270

28 80 100.0 1 00.0

B ra n c h e s ..................................... 507 507 507 507 67 170 100.0 100.0

Iowa—all offices ..................... 924 911 13 924 911 140 74 697 12 1 98.7 98.7

B a n k s ............................................ 674 661 13 674 661 102 57 502 12 1 98.2 98.2

Unit banks.................................... 478 465

196

13 478 465

196

67 44

13

354

148

12 1 9 7.5 9 7.5

Banks operating branches 1,96 196 35 100.0 100.0

B ranches ................................... 250 250 250 250 38 17 195 100.0 100.0

Kansas—all offices.................. 654 652 2 654 652 197 48 407 2 99.7 99.7

Banks ................................ 601 599 2 601 599 170 41 388 2 99.7 99.7

Unit banks .. ...................... 550 548

51

2 550 548 145

25

34

7

369 2 9 9.6 9 9 .6

Banks operating branches 51 51 51 19 1 00.0 1 00 .0

B ranches .............................. 53 53 53 53 27 1 19 100.0 100.0

Kentucky—all o ffic e s ............ 591 585 6 591 585 200 55 330 6 99.0 99.0

Banks ................................ 348 342 6 348 342 80 14 248 6 98.3 98.3

Unit banks ...................... 243 237 6 243

105

237 39 6 192 6 9 7 .5 9 7 .5

Banks operating branches 105 105 105 41

120

8 56 1 00.0 100.0

Branches ............................... 243 243 243 243 41 82 100. 6 100.0

134 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Louisiana—all offices.............. 506 505 1 506 505 192

B a n k s ...................................... .. 220 219 1 220 219 47

Unit banks.................................... 120 119 1 120 119 15

100 100 100 100 32

B ra n c h e s ...................................... 286 286 286 286 145

Maine—all offices.................... 272 262 10 227 221 95

B a n k s ............................................ 76 69 7 44 41 21

Unit banks.................................... 35 29 6 11 9 6

Banks operating branches............. 41 40 1 33 32 15

B ra n c h e s ..................................... 196 193 3 183 180 74

Maryland—all offices.............. 580 572 8 537 529 249

B a n k s ............................................ 128 127 1 122 121 49

59 59 58 58 20

Banks operating branches............. 69 68 1 64 63 29

B ra n c h e s ..................................... 452 445 1 415 408 200

Massachusetts—all offices.... 1,123 802 321 776 768 443

B a n k s ............................................ 340 165 175 162 157 90

Unit banks.................................... 139 43 96 44 41 24

Banks operating branches............. 201 122 79 118 116 66

B ra n c h e s 4................................... 783 637 146 614 611 353

Michigan—all offices.............. 1,335 1,331 4 1,335 1,331 559

B a n k s ............................................ 347 345 2 347 345 99

Unit banks.................................... 157 156 1 157 156 33

Banks operating branches............. 190 189 1 190 189 66

B ra n c h e s ..................................... 988 986 2 988 986 460

Minnesota—all offices............. 733 729 4 732 728 200

B a n k s ............................................ 724 720 4 723 719 194

U nit banks.................................... 719 715 4 718 714 192

Banks operating branches............. 5

rj 5 5 2

B ra n c h e s ..................................... 9 9 9 9 6

Mississippi—all offices 449 449 449 449 136

B a n k s ............................................ 190 190 190 190 36

Unit banks.................................... 91 91 91 91 9

Banks operating branches............. 99 99 99 99 27

B ra n c h e s ...................................... 259 259 259 259 100

Missouri—all offices............... 732 723 9 732 723 119

B a n k s ............................................. 661 652 9 661 652 98

Unit banks.................................... 590 581 9 590 581 77

Banks operating branches............. 71 71 71 71 21

B ra n c h e s ...................................... 71 71 71 71 21

Montana—all offices............... 135 134 1 135 134 51

B a n k s ............................................ 132 131 1 132 131 49

Unit banks.................................... 129 128 1 129 128 47

Banks operating branches............. 3 3 3 3 2

B ra n c h e s ..................................... 3 3 3 3 2

61

7

1

6

54

157

17

17

140

465

114

54

60

351

29

29

29

275 1

162 1

102 1

60

113

67 6 45 41 4

14 3 32 28 4

1 2 24 20 4

13 1 8 8

53 3 13 13

219 8 43 43

65 1 6 6

37 1 1

28 1

154 7 37 37

168 6 2 347 34 313

50 4 1 178 8 170

17 3 95 2 93

33 1 1 83 6 77

118 2 1 169 26 143

307 3 1

132 1 1

69 1

63 1

175 2

499 4 1 1

496 4 1 1

493 4 1 1

3

3

295

148

81

67

147

508 6 3

475 6 3

442 6 3

33

33

40 1

40 1

40 1

99.5

9 9 .2

100.0

100.0

96.3

90.8

8 2 .9

9 7 .6

98.5

99.2

100.0

9 8 .6

98.5

71.5

48.7 

3 0 .9

6 1 .0

81.5

99.7 

100.0

9 9 .5

99.8

99.5

99.4

9 9 .4

100.0

100.0

100.0

100.0

100.0

100.0

100.0

99.2

99.1

9 9 .0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

99.8

99.5

9 9.2

100.0

100.0

97.4

93.2

8 1.8

9 7.0

98.4

98.5

99.2 

100.0

99.2

97.5

93.2

99.1

99.7

99.8

99.7 

100.0

9 9 .5

99.8

99.5

99.4

9 9.4

100.0

100.0

100.0

100.0

100.0

100.0

100.0

99.2

99.1

9 9 .0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

91.1

87.5

8 3 .3

100.0

100.0

100.0

100.0

100.0

100.0

100.0

9.8

4.5 

2.1

7 .2

is! 4

100.0

100.0

100.0

NUMBER OF BANKS AND BRANCHES 135

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T A B L E 1 0 3 . NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1966— CONTINUED

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

State and type o f bank o r o ffice

N eb raska— all o ffic es ...........

B an k s.......................................

Unit banks..............................

Banks operating branches.......

B ran ch es................................

N evada— all o ffic e s ...............

B an k s.......................................

Unit banks..............................

Banks operating branches.......

B ra n ch es................................

N ew H am p sh ire— all offices

B an k s.......................................

U nit banks..............................

Banks operating branches.......

B ran ch es................................

New Jersey— all offices..........

B an k s.......................................

Unit banks..............................

Banks operating branches.......

B ran ch es................................

New Mexico— all offices —

B anks.......................................

Unit banks..............................

Banks operating branches........

B ranches................................

N ew York— all o ffic e s ...........

B an k s.......................................

Unit banks..............................

Banks operating branches.......

B ran ch es4..............................

All banks

C om m ercial banks and 

n on deposit tru s t com panies M utu al savings banks Percentage in s u re d 1

Insured N oninsured

Total

In ­

sured

N onin sure d Total

Total

M em bers F. R. 

System

Not

m e m ­

bers

Banks

of

N ondep osit

tru s t

Total

Insured

N oninsure d

All

banks

of

deC om ­

m ercial

banks

of

M utual

savings

banks

National State

F. R. 

System

d e ­

p o s it2 co m ­

panies 3

posit dep osit

468 462 6 468 462 144 14 304 1

1

5 99.8 99.8

439 433 6 439 433 126 13 294 5 99.8 99.8

411

28

405

28

6 411

28

405

28

108 12 285 1 9 9.8 9 9 .8

18 1 9 100.0 100.0

29 29 29 29 18 1 10 100.0 100.0

79 79 79 79 40 29 10 100.0 100.0

9 9 9 9 3

1

3 3 100.0 100.0

3 3 3 100.0 100.0

6 6 6 6 2 3 1 100.0 100.0

70 70 70 70 37 26 1 100.0 100.0

150 147 3 108 105 79 2 24 3 42 42 98.0 97.2 100.0

107 104 3 75 72 52 1 19 3 32 32 97.2 96.0 100.0

73 70 3 49

26

46

26

31 15 3 24 24

8

9 5 .9 9 3 .9 100.0

34

43

34 21 1 4 8 100.0 100.0 100.0

43 33 33 27 1 5 10 10 100.0 100.0 100.0

995 992 3 944 941 612 215 114 3 51 51 100.0 100.0 100.0

253 250 3 232 229 148 44 37 3 21 21 100.0 100.0 100.0

82 79 3 72 69 U

104

464

11 H

23

3 10 10 100.0 100.0 100.0

171 171 160 160 33 11 11 100.0 ' 1 00.0 100.0

742 742 712 712 171

14

77 30 30 100.0 100.0 100.0

165 165 165 165 89 62 100.0 100.0

64 64 64 64 34 7 23 100.0 100.0

24 24 24 24 15 6 100.0 1 00.0

40

101

40

101

40

101

40 19 4 17 100.0 1 00.0

101 55 7 39 100.0 100.0

2,765

462

2,733

437

32 2,396 2,364

311

1,210

190

1,008 146 26 6 369 369 99.1 98.9 100.0

25 336 83 38 20 5 126 126 95.6 94.0 100.0

202 183 19

6

159 140

171

95 27 18 15 4 43

83

43 9 2 .4

9 8.1

9 0 .3 100.0

260 254 177 95 56 20 5 1 83 9 7 .2 100.0

2,303 2,296 1 2,060 2,053 1,020 925 108 6 1 243 243 99.7 99.7 100.0

136 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
North Carolina—all offices — 927 922 5 927 922 304

Banks..................................... 137 136 1 137 136 27

56 56 56 56 7

Banks operating branches............. 81 80 1 81 80 20

Branches............................... 790 786

4 790 786 277

North Dakota—all offices....... 228 223 5 228 223 52

Banks.................................... 167 164 3 167 164 42

U nit banks.................................... 123 121 2 123 121 33

Banks operating branches............. 44 43

1 44 439

Branches............................... 61 592 61 59 10

Ohio—all offices...................... 1,547 1,546 1 1,546 1,545 798

Banks..................................... 538 537 1 537 536 226

Unit banks.................................... 292 2911 291 290 93

Banks operating branches............. 246 246 246 246 133

Branches............................... I. ,009 1,009 1,009 1,009 572

Oklahoma—all offices............. 462 461 1 462 461 253

Banks..................................... 420 419 1 420 419 220

Unit banks.................................... 380 379 1 380 379 189

40 40 40 40 31

Branches............................... 42 42 42 42 33

Oregon—all offices.................. 327 324

3 325 322 231

Banks..................................... 53 50 3 52 49 13

Unit banks.................................... 27 24

3 27 248

Banks operating branches 26 26 25 25

5

Branches4 ........................ 274 274 273 273 218

Pennsylvania—all offices....... 1,959 1,947 12 1,884 1,872 1,202

Banks..................................... 553 543 10 546 536 354

Unit banks.................................... 313 304

9 312 303 201

Banks operating branches............. 240 239

1 234 233 153

Branches4............................. 1,406 1,404

2 1,338 1,336 848

Rhode Island—all offices....... 189 180 9 139 130 59

Banks..................................... 18 16

2 11 9 4

Unit banks .............

Banks operating branches............. 18 16 2 11 9

4

Branches............................... 171 164

1 128 121 55

South Carolina—all offices.... 430 426 4 430 426 221

Banks..................................... 128 124 4 128 124 26

Unit banks...................

, .............. 61 57

4 61 57

5

Banks operating branches 67 67 67 67 21

Branches .............. 302 302 302 302 195

South Dakota—all offices 250 249 1 250 249 76

Banks..................................... 167 166

1 167 166 34

Unit banks.................................... 130 129 1 130 129 25

Banks operating branches 37 37 37 37

9

Branches ............................. 83 83 83 83 42

110

4 13

1065312

426

125

76

49

301

25

23

14211

12

244

37

19

18

207

261

...

25

116335

32

25

105

48

57

403

166

119

86

321

185

12 1

64

136

183

176

16971

77

34

15

19

43

426

145

281

194

92

102

141

107

51145312111

111

111

111

222

111

21

21

11

75716

68

507

11

75716

68

507

9761292

333

214447

43

7

43

111

99.5

99.3 

1 0 0 .0

9 8 .8

99.5

97.8

98.2

9 8 .4

9 7 .7

96.7

99.8

9 9 .7

100.0

100.0

100.0

100.0

100.0

100.0

100.0

99.4

96.2

9 2 .3

100.0

100.0

99.5

98.7

98.1

9 9 .6

99.9

95.2

88.9

95.9

99.1

96.9

9 3 .4

100.0

100.0

99.6

99.4

9 9 .2

100.0

100.0

99.5

99.3 

100.0

9 8.8

99.5

97.8

98.2

9 8.4

9 7.7

96.7

99.9

99.8

9 9 .7

100.0

100.0

100.0

100.0

100.0

100.0

100.0

99.4

96.1

9 2 .3

100.0

100.0

99.5

98.7

98.1

9 9 .6

99.9

93.5

81.9

8 1.8

94.5

99.1

96.9

9 3.4

100.0

100.0

99.6

99.4

9 9.2

100.0

100.0

100.0

100.0

100.0

100.0

100.0

'100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

NUMBER OF BANKS AND BRANCHES 137

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T A B L E 1 0 3 . NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1966— CONTINUED

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

All banks C om m ercial banks and 

nondeposit tru s t com panies M utual savings banks Percentage in s u re d 1

Insured N o ninsured

State and type of bank or o ffice

Total

In ­

sured

N oninsured Total

Total

M em bers F. R. 

System

Not

m e m ­

bers

Banks

of

N ond ep osit

tru s t

co m ­

p a n ie s 3

Total

In ­

sured

N oninsured

All

banks

o f

deC om ­

m ercial

banks

of

M utual

savings

banks

National State

F. R.

System

dep o s it2

posit dep osit

Tennessee—all offices............ 676 671 5 676 671 309 36 326 4 1 99.4 99.4

B a n k s ............................................ 298 294 4 298 294 77 9 208 3 1 99.0 99.0 Unit banks.................................... 180 177 3 180 177 21 4 152 1 9 8 .9 9 8.9 Banks operating branches............. 118 117 1 118 117 56 56 1 9 9 .2 9 9.2

B ra n c h e s ..................................... 378 377 1 378 377 232 27 118 1 99.7 99.7

Texas—all offices.................... 1,200 1,190 10 1,200

1,147

1,190 565 74 551 10 99.2 99.2

B a n k s ............................................ 1,147 1,137 10 1,137 546 70 521 10 99.1 99.1 Unit banks 99.1 .................................... 1,094 1,084 10 1,094 1,084 526 66 492

29

10 99.1 Banks operating branches............. 53 53 53 53 20 4 100.0 100 0

B ra n c h e s ..................................... 53 53 53 53 19 4 30 100.0 100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Utah—all offices...................... 166 166 166 166 71 41 54 100.0

B a n k s ............................................ 55 55 55 55 13 12 30 100.0 Unit banks.................................... 84 34 34 100.0

21

84

21

9 5 20

Banks operating branches............. 21 21 k 10 100.0

B ra n c h e s ..................................... 111 111 111 111 58 29 24 100.0

Vermont—all offices................ 115 114 1 107 106 60 46 1 8 g 100.0 100.0

100.0

100.0

100.0

100.0

B a n k s ............................................ 54 53 1

1

48 47 27 20 1 6 6 100.0 

100.0

100 0

Unit banks.................................... SO 29 26 25 U

U I 4

Banks operatinq branches............. 24 24 22 22 13 9 2

B ra n c h e s ..................................... 61 61 59 59 33 26 2 2 100.0

Virginia—all offices................. 863 863 863 863 496 156 211 100.0

B a n k s ............................................ 251 251 251 251 114

43

51 86 100.0 100.0

Unit banks.................................... 115 115 115 115 27 45

41

100.0 100.0

Banks operating branches............. 186 136 136 186 71 24 100.0 1 00.0

B ra n c h e s ..................................... 612 612 612 612 382 105 125 100.0 100.0

Washington—all offices.......... 544 543 1 519 518 386 39 93 1 25 25 99.8 99.8 100.0

100.0

100.0

100.0

100.0

B a n k s ............................................ 100 99 1 95

55

94

54

28 10 56 l 5

2

5 99.0

98.2

99.0 

9 8.2

100 0

Unit banks .................................. 57 56 1 U

U

358

35 i

Banks operating branches............. 43

444

43 40

424

40 g 21 8 3 1 00.0

Branches 4.................................. 444 424 29 37 20 20 100.0 100.0

i\ 1

138 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
W est V irginia— all offices.

Banks..............................

Unit banks............................

Banks operating branches

Branches........................

190

190

190

189

189

190

190

190

189

189

99.5

99.5

9 9 .5

99.5

99.5

9 9.5

W isconsin— all o ffic e s ...

Banks...........................

Unit banks.......................

Banks operating branches.

Branches.....................

W yom ing— all o ffic e s __

Banks...........................

U nit banks.......................

Banks operating branches.

Branches.....................

O th er area

Pacific Islands— all o ffic e s 5

Banks................................

Unit banks6............................

Banks operating branches.......

Branches7........................

P anam a Canal Z o n e -

all o ffic e s ..........................

Banks...........................

Unit banks.......................

Banks operating branches. 

Branches8...................

767

594

108

173

764

591

108

173

764

591

108

173

761

588

480

108

173

70

69

68

1

1

137

112

99

13

25

41

40

39

1

1

424

337

87

134

15

15

15

99.9

99.8

9 9 .8

100.0

100.0

100.0

100.0

100.0

100.0

100.0

35.7

99.8

9 9.8

100.0

100.0

100.0

100.0

100.0

100.0

100.0

35.7

38.5 38.5

100.0

100.0

100.0

Puerto Rico— all offices.

Banks...........................

Unit banks.........................

Banks operating branches..

Branches9...................

Virgin Islands— all offices.

Banks................................

Unit banks............................

Banks operating branches.... 

Branches10.......................

167

13

4

9

154

19

7

154

9

3

6

145

14

2

12

3

9

154

17

6

5

1

11

153

6

145

137

129

92.2

69.2 

7 5 .0

6 6 .7

94.2

77.8

33.3

92.2

66.7

66.7

66.7

94.2

75.0

20.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

1 Nondeposit trust companies are excluded in computing these percentages.

2 Includes 10 noninsured branches of insured banks: 8 branches in the Pacific Islands and 2 in 

the Panama Canal Zone.

3 Includes one trust company in Massachusetts, member of the F. R. System, operating one branch.

4 Massachusetts: 1 branch operated by a noninsured bank in New York.

Pennsylvania: 2 branches: 1 operated by a noninsured bank in New York and 1 operated by a 

national bank in New Jersey.

New York: 7 branches operated by two insured banks in Puerto Rico (not members of F. R. 

System).

Oregon: 1 branch operated by a national bank in California.

Washington: 2 branches operated by a national bank in California.

5 United States possessions (American Samoa, Guam, Midway Islands, and Wake Island); Trust

Territories (Kwajalein, Palau Islands, Ponape Island, Saipan and Truk Atoll).

6 American Samoa.

7 Pacific Islands: 13 branches.

Caroline Islands on Truk Atoll (Moen Island); 1 noninsured branch, operated by a national bank 

in California.

Mariana Islands: 5 branches (4 insured on Guam and 1 noninsured on Saipan), operated by a 

national bank in California.

Guam: 1 insured branch, operated by an insured bank in Hawaii (not a member of F. R. System).

Caroline Islands: 2 noninsured branches (1 each on Palau Islands (Koror) and Ponape Island 

(Kolonia), operated by a bank in Hawaii (not a member of F. R. System).

Marshal! Islands: Kwajalein Atoll: 2 noninsured branches operated by a bank in Hawaii (not a 

member of F. R. System).

Midway Islands on Sand Island: 1 noninsured branch operated by a bank in Hawaii (not a 

member of F. R. System).

Wake Island: 1 noninsured branch operated by an insured bank in Hawaii (not a member of 

F. R. System).

8 Panama Canal Zone: 2 noninsured branches operated by 2 national banks in New York.

9 Puerto Rico: 16 insured branches operated by 2 national banks in New York.

10 Virgin Islands: 8 insured branches operated oy 2 national banks in New York.

Back figures: See the Annual Report for 1965, pp. 118-125, and earlier reports.

NUMBER OF BANKS AND BRANCHES 139

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
ASSETS AND LIABILITIES OF BANKS

Table 104. Assets and liabilities of all banks in the United States (States and other 

areas), June 30,1966

Banks grouped according to insurance status and type of bank

Table 105. Assets and liabilities of all banks in the United States (States and other 

areas), December 31,1966 

Banks grouped according to insurance status and type of bank

Table 106. Assets and liabilities of insured commercial and insured mutual savings 

banks in the United States (States and other areas), December call dates, 

1962 through 1966

Table 107. Assets and liabilities of insured commercial banks in the United States 

(States and other areas), December 31, 1966 

Banks grouped by class of bank

Table 108. Assets and liabilities of insured commercial banks operating throughout 

1966 in the United States (States and other areas), December 31,1966 

Banks grouped according to amount of deposits

Table 109. Average assets and liabilities of insured commercial banks in the United 

States (States and other areas), by State, 1966 

Table 110. Distribution of insured commercial banks in the United States (States and 

other areas), December 31, 1966 

Banks grouped according to amount of deposits and by ratios of selected

items to assets and deposits

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Statements of assets and liabilities are submitted by insured commercial banks upon either a cash or an accrual basis, depending 

upon the bank’s method of bookkeeping. Assets reported represent 

aggregate book value, on the date of call, less valuation and premium reserves.

Assets and liabilities held in or administered by a savings, bond, 

insurance, real estate, foreign, or any other department of a bank, 

except a trust department, are consolidated with the respective 

assets and liabilities of the commercial department. “ Deposits of 

individuals, partnerships, and corporations” include trust funds 

deposited by a trust department in a commercial or savings department. Other assets held in trust are not included in statements 

of assets and liabilities.

In the case of banks with one or more domestic branches, the 

assets and liabilities reported are consolidations of figures for the 

head office and all domestic branches. In the case of a bank with 

foreign branches, net amounts due from its own foreign branches 

are included in “ Other assets,” and net amounts due to its own 

foreign branches are included in “ Other liabilities.” Branches outside the 50 States of insured banks in the United States are treated 

as separate entities but as in the case of other branches are not 

included in the count of banks. Data for such branches are not 

included in the figures for the States in which the parent banks are 

located.

Demand balances with and demand deposits due to banks in the 

United States, except private banks and American branches of foreign banks, exclude reciprocal interbank deposits. Reciprocal interbank deposits arise when two banks maintain deposit accounts with 

each other.

Individual loan items are reported gross instead of net of valuation reserves. Accordingly, reserves for losses on loans are shown 

separately.

Instalment loans are ordinarily reported net if the instalment payments are applied directly to the reduction of the loan. Such loans 

are reported gross if, under contract, the payments do not immediately reduce the unpaid balances of the loan but are assigned or 

pledged to assure repayment at maturity.

Asset and liability data for noninsured banks are tabulated from 

reports pertaining to the individual banks. In a few cases these 

reports are not as detailed as those submitted by insured banks, 

and some of the items reported have been allocated to more detailed 

categories according to the distribution of asset and liability data 

for insured State banks not members of the Federal Reserve System 

or for other noninsured banks.

Additional data on assets and liabilities of all banks as of June 

30, 1966, and December 31, 1966, are shown in the Corporation’s 

semiannual publication, “ Assets, Liabilities, and Capital Accounts, 

Commercial and Mutual Savings Banks,” Report of Call No. 76, and 

Report of Call No. 78. Data from Call No. 75, April 5, 1966, and 

Call No. 77, September 20, 1966, were not tabulated for all insured 

banks. Comparable tabulations for State and national banks were 

not feasible because of a change in the form used for national 

institutions.

Sources of data

National banks and State banks in the District of Columbia not 

members of the Federal Reserve System: Office of the Comptroller 

of the Currency.

State banks members of the Federal Reserve System: Board of 

Governors of the Federal Reserve System.

Other insured banks: Federal Deposit Insurance Corporation.

Noninsured banks: State banking authorities; and reports from 

individual banks.

ASSETS AND LIABILITIES OF BANKS 141

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANKS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BANK 

(Am ounts in thousands of dollars)

Table 104. ASSETS AND LIABILITIES OF ALL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), JUNE 30, 1966

Asset, lia b ility, or capita l a cco u n t item

Total assets.

Loans and discounts, net—total............

Valuation re se rve s .....................................................

Loans and discounts, gross—total

Real estate loans— to ta l.......................................

Secured by farm land..................................................

Secured by residential properties:

Insured by F H A .............

Guaranteed by V A .......................................

N ot insured or guaranteed by FH A or V A .........

Secured by other properties.........................................

Loans to co m m e rcia l and fo re ig n b a n k s ..

Loans to o th e r fin a n cia l in s titu tio n s ..............

Federal fu n d s sold (lo a n e d )..............................

Loans to brokers and dea lers in se cu ritie s.

O ther loans fo r ca rryin g s e c u ritie s .................

Loans to fa rm e rs (e xclu d in g real e sta te ). .

C om m ercial and in d u s tria l lo a n s ....................

O ther loans to in d iv id u a ls ..................................

All o th e r loans (in c lu d in g o v e rd ra fts )...........

Cash, balances with other banks, and cash collection

items—total...................................................................

C u rrency and c o in .......................................................................

Reserve w ith F. R. Banks (m e m b e r b a n k s )......................

D em and balances w ith banks in U. S.................................

O ther balances w ith banks in U. S.......................................

Balances w ith banks in fo re ig n c o u n trie s .........................

Cash item s in process of c o lle c tio n .....................................

Securities—total..................................................................

U. S. Gov’t, oblig a tio n s (in c lu d in g g u a ra n te e d )..............

O bligations of S tates and s u b d iv is io n s ..............................

S e curities o f Federal agencies and c o rp o ra tio n s (n o t

g ua ran teed by U. S .)..............................................................

O ther s e c u ritie s 3...........................................................................

Miscellaneous assets—total....................................

Bank prem ises, fu rn itu re and fix tu re s , and real estate j

— net o f m ortgages and o th e r lie n s .....................

All o th e r m iscellane ous a s s e ts ...................................

All banks

C om m ercial banks and n on deposit tru s t 

com panies M utual savings banks

N oninsured

Total Insured N oninsured

Total Insured

Banks of 

de p o sit 1

N ond e p o sit

tru s t

co m ­

p a n ie s 2

Total Insured N oninsured

447,788,369 436,359,375 11,428,994 388,372,656 384,907,833 3,147,786 317,037 59,415,713 51,451,542 7,964,171

61,152,141

5,425,600

18,094,230

13,638,910

729,842

252,896

23,010,663

60,462,918

5,377,958

18,094,230

13,133,947

669,251

223,431

22,964,101

689,223

47,642

60,186,603

5,267,034

18,094,230

59,608,563

5,246,935

18,094,230

500,848

18,761

77,192

1,338

965,538

158,566

854,355

131,023

111,183

27,543

504,963

60,591

29,465

46,562

13,097,769

525,377

252,896

12,667,647

464,863

223,431

395,162

22,023

29,452

35,450

34,960

38,491

13

541,141

204,465

466,300

204,388

74,841

77

22,949,297 22,911,457 2,390 61,366 52,644 8,722

113,319,979

58,741,365

40,986,077

110,110,107

56,612,041

40,692,508

3,209,872

2,129,324

293,569

102,500,391

53,618,931

40,701,718

101,533,236

53,179,892

40,426,956

806,840

373,644

221,753

160,315

65,395

53,009

10,819,588

5,122,434

284,359

8,576,871

3,432,149

265,552

2,242,717

1,690,285

18,807

7,579,016

6,013,521

7,416,755

5,388,803

162,261

624,718

6,589,816

1,589,926

6,454,496

1,471,892

124,025

87,418

11,295

30,616

989,200

4,423,595

962,259

3,916,911

26,941

506,684

261,014,034

4.311,629

265,325,663

98,189,728

3 ,0 8 1 ,5 4 3

253,775,901

4,286,656

258,062,557

92,523,715

3 ,0 54 ,01 6

7,238,133

24,973

7,263,106

5,666,013

2 7,527

214,385,874 I

4,085,760

218,471,634

52,306,219

3 ,0 2 8 ,0 4 6

212,672,832

4,076,167

216,748,999

51,998,999

3 ,0 0 6 ,3 0 2

1,667,602

9,342

1,676,944

292,872

2 0,829

45,440

251

45,691

14,348

915

46,628,160

225,869

46,854,029

45,883,509

5 3,497

41,103,069

210,489

41,313,558

40,524,716

47,714

5,525,091

15,380

5,540,471

5,358,793

5 ,783

2 1,81 5,3 17

14,000,109

3 9,06 7,3 74 \

2 0,22 5,3 85

1,994,243 

13,983,149 

2,129,473 

5,366,337 

3,295,460 

8,502,934 

77,877,049 

48,664,629 

5,322,661

2 0,76 7,1 86

12,973,369

3 6,26 0,5 15

19,468,629

1,953,138

13,822,236

2,060,973

5,238,176

3,231,588

8,483,373

77,218,954

48,300,811

5,229,593

1 ,048,131

1 ,0 2 6 ,7 4 0

2 ,8 0 6 ,8 5 9

756,756

41,105

160,913

68,500

7 ,7 68 ,58 9

2 ,6 54 ,57 4

2 3,37 6,9 46

1 5.478.064

1,973,429

13,971,081

2,129,473

5,349,835

3,287,201

8,501,090

77.734.064 

47,928,186

5,291,056

7,630,101

2 ,603,391

2 3 ,31 0,5 86

1 5,44 8,6 19

1,932,344

13,810,322

2,060,973

5,221,824

3,224,576

8,481,529

77,085,497

47,726,040

5,206,895

135,027

51,010

59,572

26,434

40,845

160,188

68,500

119,536

54,081

19,270

643,288

199,357

79,007

3,461

173

6 ,7 88

3,011

240

571

1 4,04 6,7 28

1 1 ,34 5,5 35

1 5 ,69 0,4 28

4 ,7 47 ,32 1

20,814

12,068

1 3,13 7,0 85

1 0,36 9,9 78

1 2,94 9,9 29

4 , 020,010

20,794

11,914

909,643

975,557

2 ,7 4 0 ,4 9 9

727,311

20

154

128,161

63,872

19,561

658,095

363,818

93,068

8,475

8,544

291

16,502 

8,259 

1 844

16,352

7,012

1,844

133,457

574,771

22,698

150

1,247

5,279

2,789

5,154

142,985

736,443

31,605

9,528

161,672

8,907

12,302,215 12,010,449 291,766 11,299,788 11,093,202 172,496 34,090 1,002,427 917,247 85,180

5,899,674

6,402,541

5,800,336

6,210,113

99,338

192,428

5,439,253

5,860,535

5,397,058

5,696,144

22,887

149,609

19,308

14,782

460,421

542,006

r 403,278 

513,969

57,143

28,037

142 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Total liabilities and capital accounts.................................. 447,788,3

Business and personal deposits—total.........................

In d ivid u a ls, p a rtn e rsh ip s, and co rp o ra tio n s -d e m a n d

Deposits of savings and loan associations.......................................

Other deposits of individuals, partnerships, and corporations........

In d ivid u a ls, p a rtn e rs h ip s , and co rp o ra tio n s —tim e . . .

Savings deposits...............................................................................

Deposits accumulated for payment of personal loans......................

Deposits of savings and loan associations.......................................

Other deposits of individuals, partnerships, and corporations..........

C e rtifie d and o ffic e rs ’ checks, le tte rs of credit, 

tra v e le rs ’ checks, e tc .............................................................

Government deposits—total...................

U n ited States G o ve rn m e n t— d e m a n d .

U nited S tates G overnm e nt— tim e .........

States and su b d iv is io n s —d e m a n d . . . . 

States and su b d ivisio n s—tim e ...............

Domestic interbank deposits—total

C o m m ercial banks in th e U. S.— d e m a n d . . . .

C o m m ercial banks in th e U. S.— tim e ..............

M u tu a l savings banks in th e U. S.— d e m and . 

M u tu a l savings banks in th e U. S.— tim e ........

Foreign government and bank deposits—total.............

Foreign g o ve rn m e n ts, ce n tra l banks, e tc.— dem and.

Foreign g o ve rn m e n ts, c e n tra l banks, etc.—tim e .........

Banks in fo re ig n co u n trie s — d e m a n d ...............................

Banks in fo re ig n c o u n trie s — tim e .......................................

Total deposits.

D em and..............

T im e...................

Miscellaneous liabilities—total..............

Federal fu n d s purchase d (b o rro w e d ). 

O ther lia b ilitie s fo r borrow ed m oney. . 

All o th e r m iscellane ous lia b ilitie s .........

Total liabilities (excluding capital accounts).

Capital accounts—to ta l.................

P referred c a p ita l..............................

C om m on s to c k ..................................

S u rp lu s ..................................................

U n divided p ro fits and reserves.

j 331,907,563

| 132,270,233

2,2 55 ,58 3

1 30,014,650

192,895,655

144,535,729

1,153,442

814,845

46,391,639

6,741,675

39,032,557

11,030,145

252,741

15,035,176

12,714,495

16,338,708

14,504,132

588,254

1,028,132

218,190

7,047,584

792,499

4,388,363

1,546,703

320,019

394,326,412

182,948,695

211 ,377,717

17,264,981

2,354,637

2,102,425

12,807,919

411,591,393

36,196,976

1,841,955

8,887,512

17,124,392

8,343,117

436,359,375

323,317,776

131,402,041

2 ,2 53 ,52 5

129,148,516

185,267,704 

137,222,884

1 ,1 50 ,60 9

8 13,997

46 , 080,214

6,648,031

38,810,524

10,994,334

249,389

14,915,946

12,650,855

16,106,768

14,471,376

586,568

875,583

173,241

11,428,994

8,589,787

868,192

2,058

866,134

7,627,951

7,3 12 ,84 5

2 ,833

848

311,425

93,644

222,033

35,811

3,352

119,230

63,640

6,851,913

773,538

4,332,400

1,457,381

288,594

385,086,981

181,538,230

203,548,751

16,272,294

2,351,637

1,878,801

12,041,856

401,359,275

35,000,100

1,792,222

8,753,880

16,547,497

7,906,501

231,940

32,756

1,686

152,549

44,949

195,671

18,961

55,963

89,322

31,425

9,239,431

1 ,4 10 ,46 5

7,8 28 ,96 6

992,687

3,000

223,624

766,063

10,232,118

1,196,876

49,733

133,632

576,895

436,616

388,372,656 | 384,907,833 3,147,786

278,219,267

131,840,895

2 ,2 5 5 ,5 8 3

1 29 ,585,312

139,650,243

9 1,3 3 9 ,7 7 8

1 ,1 53 ,27 6

814,845

4 6 ,34 2,3 44

6,728,129

38,993,832

11,022,957

252,326

15,033,199

12,685,350

276,672,377

131,000,808

2 ,2 5 3 ,5 2 5

128,747,283

139,037,084

9 1,01 5,8 41

1,1 50 ,57 5

8 13,997

4 6,056,671

6,634,485

16,337,357

14,503,987

587,048

1,028,132

218,190

7,047,584

792,499

4,388,363

1,546,703

320,019

340,598,040

182,496,501

158 ,1 01 ,53 9

16,339,431

2,354,637

2,010,447

11,974,347

356,937,471

31,435,185

1,838,796

8,887,512

13,878,438

6,830,439

38,774,831

10,988,373

249,019

14,913,969

12,623,470

1,418,408

753,264

2,058

751,206

571,515

300,783

2,701

848

267,183

93,629

218,676

34,259

3,307

119,230

61,880

16,105,417

14,471,231

585,362

875,583

173,241

6,851,913

773,538

4,332,400

1,457,381

288,594

338,404,538

1 81 ,1 15 ,36 8

1 57 ,289,170

15,549,092

2,351,637

1,786,853

11,410,602

353,953,630

231,451

32,267

1,686

152,549

44,949

317,037

128,482

86,823

18,490

15

325

325

489

489

195,253

18,655

55,963

89,210

31,425

2,063,788

1 ,2 9 3 ,0 6 3

770,725

761,483

3,000

220,537

537,946

2,825,271

30,954,203

1,789,063

8,753,880

43,701,729

6,709,531

322,515

49,433

85,509

104,851

82,722

418

306

112

129,714

88,070

41,644

28,856

3,057

25,799

158,570

158,467

300

48,123

71,858

38,186

59,415,713

53,688,296

429,338

429,338

53,245,412

53,19 5,9 51

166

51,451,542

46,645,399

401,233

4 9,295

13,546

38,725

7,188

415

1,977

29,145

401,233

46,230,620

4 6 ,20 7,0 43

23,543

13,546

1,351

145

1,206

53,728,372

452,194

5 3,27 6,1 78

925,550

91,978

833,572

54,653,922

4,761,791

3,159

3,245,954

1,512,678

35,693

5,961

370

1,977

27,385

1,351

145

1,206

46,682,443

422,862

4 6,259,581

723,202

91,948

631,254

47,405,645

4,045,897

3,159

2,845,768

1,196,970

7,964,171

7,042,897

28,105

28,105

7,014,792

6,9 88 ,90 8

132

25,752

3,032

1,227

45

l',760

7,045,929

2 9,332

7 ,0 16 ,59 7

202,348

30

202,318

7,248,277

715,894

400,186

315,708

N u m b e r o f b a n k s 4. 14,328 13,891 437 13,821 13,559 211 51 507 332 175

1 Includes asset and liability figures for 17 branches of foreign banks (tabulated as banks)licensed to do a deposit business in the State of New York. Capital is not allocated to these branches by the parent banks.

2 Amounts shown as deposits are special accounts and uninvested trust funds with the latter classified as demand deposits of individuals, partnerships, and corporations.

3 Excludes corporate stocks, other than Federal Reserve bank stock, of national banks; reported with “ All other miscellaneous assets.”

4 Includes 8 noninsured banks of deposit for which asset and liability data are not available.

Back figures: See the Annual Report for 1965, pp. 130-131, and earlier reports.

ASSETS AND LIABILITIES OF BANKS 143

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANKS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BA N K 

(Am ounts in thousands of dollars)

Table 105. ASSETS AND LIABILITIES OF ALL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1966

Asset, lia b ility, o r capita l a cco u n t item

All banks

C om m ercial banks and n o n deposit tru s t 

com panies M utual savings banks

Total Insured N oninsured

Total Insured

Nonins

Banks of 

d e p o s it1

iured

N ondep osit

tru s t

co m ­

p a n ie s 2

Total Insured N oninsured

Total assets.............................................................................

Cash, balances with other banks, and cash collection

items—to ta l...................................................................

C u rrency and c o in ........................................................................

467,525,827 455,995,804 11,530,023 406,515,162 402,946,336 3,258,593 310,233 61,010,665 53,049,468 7,961,197

70,260,664

5,659,939

19,068,820

16,172,706

484,781

279,818

28,594,600

69,499,675

5,602,868

19,068,820

15,610,887

423,809

250,872

28,542,419

760,989

57,071

69,294,117

5,486,811

19,068,820

15,620,451

313,676

279,818

28,524,541

68,651,850

5,457,281

19,068,820

15,136,611

257,066

250,872

28,481,200

571,267

28,304

71,000

1,226

966,547

173,128

847,825

145,587

118,722

27,541

Dem and balances w ith banks in U. S............................

O ther balances w ith banks in U. S........................................

Balances w ith banks in fo re ig n c o u n trie s .........................

Cash item s in process o f c o lle c tio n ......................................

Securities—total..................................................................

U. S. Gov’t, obliga tions (in c lu d in g g u a ra n te e d )..............

O bligations o f States and s u b d iv is io n s ..............................

^S ecuritie s of Federal agencies and c o rp o ra tio n s (n o t

g u a ran teed by U. S .)........................................ ..................

O ther se cu ritie s 3.............................................................

Loans and discounts, net—total s ....................................

V aluation re se rve s ...............................................................

Loans and discounts, gross—total

Real estate loans—to ta l.............................................................

Secured by farm land............................................................

Secured by residential properties:

Insured by F H A ...............................................................

Guaranteed by V A .............................................................

N ot insured or guaranteed by FH A or V A ...................................

Secured by other properties.....................................................

Loans to co m m e rcia l and fo re ig n b a n k s ...........................

Loans to o th e r fin a n cia l in s titu tio n s ....................................

Federal fu n d s sold (loan ed)

561,819

60,972

28,946

52,181

451,693

21,578

28,940

40,752

32,147

35,032

6

2,589

552,255

171,105

70,059

474,276

166,743

61,219

77,979

4,362

8,840

115,955,687

61,078,899

41,365,915

7,148,134

6,362,739

112,961,573

59,227,658

41,068,361

6,968,260

5,697,294

2,994,114

1,851,241

297,554

179,874

665,445

105,229,480

56,325,847

41,110,560

6,091,003

1,702,070

104,285,823

55,903,996

40,831,664

5,959,194

1,590,969

781,928

356,141

225,807

121,109

78,871

161,729

65,710

53,089

10,700

32,230

10,726,207

4,753,052

255,355

1,057,131

4,660,669

8,675,750

3,323,662

236,697

1,009,066

4,106,325

2,050,457

1,429,390

18,658

48,065

554,344

268,517,737

4,498,619

273,016,356

101,716,798

3,1 90 ,92 7

2 2,04 3,9 88

1 4,069,902

4 1,00 4,7 40

21,407,241

2,224,323

13,351,554

2,544,121

5,863,059

3,212,125

8,571,275

81,285,865

48,978,991

5,268,245

261,048,875

4,477,416

265,526,291

95,907,993

3,160,141

21,00 4,6 73

13,030,457

3 8,15 0,7 58

20,56 1,9 64

2,166,325 

13,197,358 

2,460,941 

5,685,357 

3,153,881 

8,551,208 

80,600,081 

48,609,815 

5,193,332

7,468,862

21,203

7,490,065

5,808,805

30,786

1 ,0 3 9 ,3 1 5

1 ,0 39 ,44 5

2 ,8 5 3 ,9 8 2

845,277

57,998

154,196

83,180

177,702

58,244

20,067

685,784

369,176

74,913

220,219,133

4,346,582

224,565,715

54,380,292

3,1 37 ,56 1

7 ,5 4 4 ,4 1 2

2 ,5 9 9 ,0 7 0

24,73 2,9 98

1 6,366,251

2,190,955

13,340,438

2,544,121

5,820,814

3,206,834

8,569,466

81,083,594

48,192,700

5,236,501

218,455,698

4,336,933

222,792,631

54,099,590

3 ,1 1 2 ,4 2 2

7 ,441,201

2 ,5 5 6 ,5 2 7

2 4,65 9,8 45

1 6 ,32 9,5 95

2,132,957

13,186,453

2,460,941

5,643,112

3,149,552

8,549,399

80,408,482

47,992,068

5,170,077

1,719,304

9,282

1,728,586

267,719

24,305

100,605

42,431

66,238

34,140

57,631

153,255

83,180

168,052

51,328

19,910

666,240

198,086

63,185

44,131

367

44,498

12,983

834

2,6 06

112

6,9 15

2 ,516

367

730

48,298,604

152,037

48,450,641

47,336,506

53,366

14,49 9,5 76

11,47 0,8 32

16,27 1,7 42

5 ,0 40 ,99 0

33,368

11,116

42,593,177

140,483

42,733,660

41,808,403

47,719

1 3,56 3,4 72

10,47 3,9 30

13,49 0,9 13

4,2 3 2 ,3 6 9

33.368

10,905

5,705,427

11,554

5,716,981

5,528,103

5,647

936,104

996,902

2 ,7 80 ,82 9

808,621

211

Loans to brokers and dea lers in s e c u ritie s .......................

O ther loans fo r ca rryin g s e c u ritie s .......................................

Loans to fa rm e rs (e xclu d in g real e s ta te )..........................

C om m ercial and in d u s tria l lo a n s ...........................................

O ther loans to in d iv id u a ls .........................................................

All o th e r loans (in c lu d in g o v e rd ra fts )..................................

Miscellaneous assets—to ta l..............................................

B a n k prem ises, fu rn itu re and fix tu re s , and real e sta te .

— ne t of m ortgages and o th e r lie n s ..................................

All o th e r m iscellane ous a s s e ts ...............................................

9,650

5,954

157

8,872

2,546

3,239

42,245

5,291

1,809

202,271

786,291

31,744

42,245

4,329

1,809

191,599

617,747

23,255

962

10,672

168,544

8,489

12,791,739

6,138,127

6,653,612

12,485,681

6,035,180

6,450,501

306,058

102,947

203,111

11,772,432

5,662,489

6,109,943

11,552,965

5,619,987

5,932,978

186,094

23,132

162,962

33,373

19,370

14,003

1,019,307

475,638

543,669

932,716

415,193

517,523

86,591

60,445

26,146

144 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Total liabilities and capital accounts................................

Business and personal deposits—total.........................

In d ividuals, p a rtn e rsh ip s, and co rp o ra tio n s—dem and

Deposits of savings and loan associations.......................................

Other deposits of individuals, partnerships, and corporations..........

In d ivid u a ls, p a rtn e rsh ip s, and c o rp o ra tio n s—tim e . . .

Savings deposits..............................................................................

Deposits accumulated for payment of personal loans......................

Deposits of savings and loan associations.......................................

Other deposits of individuals, partnerships, and corporations.........

C e rtifie d and o ffic e rs ' checks, le tte rs of credit, 

tra v e le rs ’ checks, e tc ...........................................................

Government deposits—total............................................

U nited S tates G overnm e nt— d e m a n d ...............................

U nited S tates G overnm e nt— tim e ......................................

S tates and s u b d ivisio n s— d e m a n d ....................................

S tates and su b d iv is io n s —tim e .............................................

Domestic interbank deposits—total..............................

C o m m ercial banks in th e U. S.— d e m a n d .......................

C o m m ercial banks in th e U. S.— tim e ................................

M utu al savings banks in th e U. S.— d e m a n d ................

M utu al savings banks in th e U. S.—tim e ........................

Foreign government and bank deposits—total..............

Foreign g o ve rn m e n ts, ce n tra l banks, etc.—d e m a n d ..

Foreign g o ve rn m e n ts, ce n tra l banks, etc.—tim e .........

Banks in fo re ig n c o u n trie s— d e m a n d ...............................

B anks in fo re ig n c o u n trie s —tim e .......................................

Total deposits .T..........................................................

D em and.......................................................................................

T im e............................................................................................

Miscellaneous liabilities—total.......................................

Federal fu n d s purchase d (b o rro w e d )..............................

O ther lia b ilitie s fo r borrow ed m o n e y ................................

All o th e r m iscellaneous lia b ilitie s .......................................

Total liabilities (excluding capital accounts).........

Capital accounts—total....................................................

P referred c a p ita l........................................................................

Com m on s to c k ............................................................................

S u rp lu s ................................................. .........................................

U ndivided p ro fits and re s e rv e s ..........................................

N u m b e r o f b a n k s 4.............................................................................

467,525,827 455,995,804 11,530,023 406,515,162 402,946,336 3,258,593 310,233 61,010,665 53,049,468 7,961,197

350,515,829

145,610,480

2 ,3 00 ,33 0

143,310,150

197,813,526

145,249,100

1,2 26 ,60 8

620,751

5 0,71 7,0 67

7,091,823

341,778,234

144,689,782

2,2 98 ,37 1

142,391,411

190,095,943

1 37 ,8 88 ,85 3

1 ,223,591

620,601

5 0,36 2,8 98

6,992,509

8,737,595

920,698

1,959

918,739

7,717,583

7 ,3 6 0 ,2 4 7

3,0 17

150

354,169

99,314

295,209,262

145,224,888

2,3 00 ,33 0

142,924,558

142,904,064

9 0,37 1,0 90

1 ,2 26 ,34 0

620,751

5 0,68 5,8 83

7,080,310

293,565,757

144,323,672

2 ,298,371

142,025,301

142,261,089

9 0,07 6,7 46

1 ,2 2 3 ,5 5 3

620,601

5 0,34 0,1 89

6,980,996

1,521,473

819,488

1 ,959

817,529

602,682

269,140

2 ,7 87

150

3 30,605

99,303

122,032

81,728

55,306,567

385,592

48,212,417

366,110

7,094,090

19,482

81,728

40,293

2 5,204

385,592

54,909,462

5 4,87 8,0 10

268

366,110

47,834,854

4 7,81 2,1 07

38

19,482

7,074,608

7,0 65 ,90 3

230

15,089

11

31,184

11,513

22,709

11,513

8 ,475

34,014,407

5,022,377

262,012

15,174,000

13,556,018

33,810,211

4,996,312

257,896

15,062,369

13,493,634

204,196

26,065

4,116

111,631

62,384

33,970,303

5,015,638

261,653

15,170,733

13,522,279

33,768,382

4,990,164

257,599

15,059,104

13,461,515

201,767

25,320

4,054

111,629

60,764

154

154

44,104

6,739

359

3,267

33,739

41,829

6,148

297

3,265

32,119

2,275

591

62

2

1,620

18,569,237

16,985,886

479,125

899,317

204,909

18,356,651

16,947,354

478,100

782,525

148,672

212,586

38,532

1,025

116,792

56,237

18,567,907

16,985,760

477,921

899,317

204,909

18,355,321

16,947,228

476,896

782,525

148,672

212,118

38,064

1,025

116,792

56,237

468

468

1,330

126

1,204

1,330

126

1,204

7,380,229

895,088

4,266,339

1,904,262

314,540

7,150,699

869,268

4,212,084

1,784,407

284,940

229,530

25,820

54,255

119,855

29,600

7,380,229

895,088

4,266,339

1,904,262

314,540

7,150,699

869,268

4,212,084

1,784,407

284,940

229,053

25,503

54,255

119,769

29,526

477

317

86

74

410,479,702

193,583,233

216,896,469

401,095,795

1 92 ,1 24 ,52 6

208 ,9 71 ,26 9

9,383,907

1 ,4 5 8 ,7 0 7

7 ,9 25 ,20 0

355,127,701

193 ,1 75 ,99 6

161 ,9 51 ,70 5

352,840,159

191,737 ,364

1 61,102,795

2,164,411

1,3 55 ,86 8

808,543

123,131

82,764

40,867

55,352,001

407,237

5 4 ,94 4,7 64

48,255,636

387,162

47,86 8,4 74

7,096,365

20,075

7,0 76 ,29 0

19,991,527

2,825,088

2,149,384

15,017,055

19,066,744

2,824,088

1,973,389

14,269,267

924,783

1,000

175,995

747,788

19,204,781

2,825,088

2,080,128

14,299,565

18,413,009

2,824,088

1,904,513

13,684,408

766,246

1,000

173,186

592,060

25,526 786,746 653,735 133,011

2,429

23,097

69,256

717,490

68,876

584,859

380

132,631

430,471,229 420,162,539 10,308,690 374,332,482 371,253,168 2,930,657 148,657 56,138,747 48,909,371 7,229,376

37,054,598

1,845,950

8,994,411

17,490,922

8,723,315

35,833,265

1,794,597

8,856,837

16,922,389

8,259,442

1,221,333

51,353

137,574

568,533

463,873

32,182,680

1,842,838

8,994,411

14,177,817

7,167,614

31,693,168

1,791,485

8,856,837

13,998,697

7,046,149

327,936

51,053

85,034

106,496

85,353

161,576

300

52,540

72,624

36,112

4,871,918

3,112

4,140,097

3,112

731,821

3,313,105

1,555,701

2,923,692

1,213,293

389,413

342,408

14,291 13,873 418 13,785 13,541 196 48 506 332 174

1 Includes asset and liability figures for 14 branches of foreign banks (tabulated as banks) licensed to do a deposit business in the State of New York. Capital is not allocated to these branches by the parent banks.

2 Amounts shown as deposits are special accounts and uninvested trust funds, with the latter classified as demand deposits of individuals, partnerships, and corporations.

3 Excludes corporate stocks, other than Federal Reserve bank stock, of national banks; reported with “ All other miscellaneous assets.”

4 Includes 3 noninsured banks for which asset and liability data are not available.

Back figures, 1934-1965: See the preceding table and the Annual Report for 1965, pp. 132-133, and earlier reports.

ASSETS AND LIABILITIES OF BANKS 145

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 106. ASSETS AND LIABILITIES OF INSURED COMMERCIAL AND INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES 

(STATES AND OTHER AREAS), DECEMBER CALL DATES, 1962 THROUGH 1966

(Am ounts in thousands of dollars)

A ssets

Total assets..........................................................

Cash, balances with other banks, and cash

collection items—total

C urrency and c o in .................................................

Reserve w ith Federal Reserve Banks (m e m ­

ber b a n k s ).............................................................

Dem and balances w ith banks in th e U nited 

States (except p rivate banks and A m e rican branches of fore ig n b a n k s )..............

O ther balances w ith banks in th e U nited

S ta te s ......................................................................

Balances w ith banks in fo re ig n c o u n trie s ... 

Cash item s in process o f c o lle c tio n ...............

Obligations of the U. S. Government, direct

and guaranteed—total..............................

D irect:

T reasury b ills .......................................................

T reasury c e rtific a te s of in d e b te d n e s s .... 

T reasury notes m a tu rin g in 1 year or less 

T reasury notes m a tu rin g a fte r 1 year. ... 

U nited S tates no n -m a rke ta b le bonds. . . . 

O ther bonds m a tu rin g in 1 year or le s s .. 

O ther bonds m a tu rin g in 1 to 5 y e a r s .... 

O ther bonds m a tu rin g in 5 to 10 y e a rs ... 

O ther bonds m a tu rin g a fte r 10 years. . . . 

G uaranteed o b lig a tio n s .......................................

Other securities—total.....................................

O bligations of States and s u b d iv is io n s .........

S ecurities of Federal agencies and c o rp o ra ­

tions (n o t gua ran teed by U. S .)...................

O ther bonds, notes, and d e b e n tu re s ............

Federal Reserve Bank s to c k .............................

O ther corporate s to c k s ........................................

Total securities.......................................

Insured com m ercial banks

Dec. 28, 

1962

295,982,703

53,798,705

4,259,137

17,679,794

12,563,869

256,823

237,431

18,801,651

65,966,306

11,570,253

3,917,424

5,199,158

18,518,818

303,366

2,253,167

11,332,096

11,967,665

768,599

135,760

28,946,174

24,582,904

2,870,165

804,088

465,705

223,312

94,912,480

Dec. 20, 

1963

Dec. 31, 

1964

311,790,848 345,130,205

i

50,445,462 60,032,916

4,053,057 4,551,f “ “

17,149,613 '

11,644,517

367,817

298,992

16,931,466

17,580,743

14,090,586

558,335

300,841

22,950,522

62,811,737

10,999,

1,651,

5,921,

16,402,

277,

1,141,

12,931,

12,244,

1,137,

104,

34,660,292

29,611,314

3,503,243

784,083

491,175

270,477

97,472,029

62,588,052

13,301,211

7,097,197

11,872,107

247,362

1,904,040

14,766,228

12,481,688

778,067

140,152

38,371,648

33,343,807

3,446,144

762,790

818,907

100,959,700

Dec. 31, 

1965

Dec. 31, 

1966

375,394,111

60,436,719

4,865,803

17,992,395

14,354,186

484,817

255,865

22,483,653

59,209,832

C)

44,440,876

38,480,349

4,513,114

447,413

103,650,708

402,946,336

68,651,850

5,457,281

19,068,820

15,136,611

257,066

250,872

28,481.200

55,903,996

0)

48,381,827

40,831,664

5,959,194 

21 ,590,969

104,285,823

Insured m utual savings banks

Dec. 28, 

1962

39,951,409

783,711

123,167

458,012 

160,125 

42'407

4,639,213

220,763

78,906

122,927

631,844

146,394

31,981

316,445

1,631,069

1,354,432

104,452

5,180,122

493,149

616,277

3,260,251

810,445

9,819,335

Dec. 20, 

1963

43,018,983

721,513

104,083

441,946

141,043

34.441

4,324,018

208,768

19,074

217,234

354,585

115,721

14,190

537,123

1,423,462

1,296,853

137,008

5,040,575

410,862

712,425

3,003,773

913,515

9,364,593

Dec. 31, 

1964

47,044,184

893,139

138,843

476,644

224,274

53,378

4,110,452

232,494

128,164

280,349

92,527

11,515

850,449

1,107,233

1,241,155

166,566

5,014,656

367,846

749,219

2,904,732

992,859

9,125,108

Dec. 31, 

1965

50,499,716

904,000

142,598

493,600

212,193

55,609

3,759,961

309,700

146,292

89,827

67,037

31,850

851,953

975,170

1,177,097

111,035

5,010,410

300,273

842,356

2,731,805

1,135,976

8,770,371

Dec. 31, 

1966

53,049,468

847,825

145,587

474,276

166,743

61,219

3,323,662

289,812

16,900

98,058

219,584

61,857

34,512

792,853

680,603

998,066

131,417

5,352,088

236,697

1,009,066

2,932,706

1,173,619

8,675,750

146 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Loans and discounts, net— to ta l................................ 140,023,316 155,933,367 175,096,194 201,114,143 218,455,698 28,778,005 32,299,615 36,233,052 39,964,343 42,593,177

Valuation reserves ........................................................ 2,694,275 2,994,811 3,552,676 4,011,273 4,336,933 215,413 218,740 209,774 209,331 140,483

Loans and discounts, gross— to ta l........................... 142,717,591 158,928,178 178,648,870 205,125,416 222,792,631 28,993,418 32,518,355 36,442,826 40,173,674 42,733,660

Real estate loans—to ta l............................................ 34,309,294 39,088,205 43,733,086 49,393,933 54,099,590 28,441,482 31,892,036 35,823,288 39,435,679 41,808,403

Secured by farm lan d........................................................ 2,002,871 2,303,251 2 ,6 16 ,60 4 2 ,8 88 ,01 2 3 ,1 12 ,42 2 46,072 46,848 48,629 46,819 47,71.9 Secured by residential properties:

Insured by F H A ........................................................... 6 ,4 % , 946 7 ,047,238 7 ,2 43 ,49 7 7 ,5 92 ,40 5 7,441,201 8 ,6 8 1 ,7 9 3 9 ,9 69 ,51 0 1 1,52 7,8 27 1 2,911,024 13,563,472

Guaranteed by V A ........................................................ 2 ,6 35 ,24 0 2 ,817,152 2 ,6 84 ,46 8 2 ,6 3 7 ,4 3 9 2,5 56 ,52 7 8 ,8 3 6 ,8 0 2 9 ,5 0 0 ,6 7 3 10,12 9,2 74 10,42 7,3 83 10,473,930

Not insured or guaranteed by FH A or V A .................. 1 4,237,357 16,380,889 18,81 0,7 98 21,92 9,5 84 2 4,65 9,8 45 8 ,2 3 3 ,8 4 5 9 ,3 8 6 ,6 6 3 1 0,73 9,8 93 1 2,24 5,6 12 13,490,913

Secured by other properties............................................... 8 ,9 38 ,88 0 10,539,675 12,37 7,7 19 14,34 6,4 93 16,329,595 2 ,6 42 ,97 0 2,9 8 8 ,3 4 2 3 ,3 7 7 ,6 6 5 3,804,841 4 ,2 32 ,36 9

Loans to d o m e stic co m m e rcia l and foreign

ba n k s ............................................................................ 2,552,321 3,594,633 3,420,989 2,095,012 2,132,957 8,049 15,617 16,228 12,505 33,368

Loans to o th e r finan cial in s titu tio n s ................... 8,468,121 9,441,479 10,849,646 13,186,038 13,186,453 5,234 7,016 9,322 14,342 10,905

Federal fu n d s sold (lo a n e d ).................................... ( 3) ( 3) <z) 2,064,215 2,460,941

Loans to b rokers and dealers in s e c u ritie s ___ 5,120,629 5,325,642 5,355,550 5,087,694 5,643,112 57,296 24,278 25,759 21,585 42,245

O ther loans fo r p u rch a sin g or c a rry in g securitie s .........................„ ...................................................... 2,103,614 2,476,760 2,/94,217 3,175,076 3,149,552 11,320 11,579 4,807 4,812 4,329

Loans to fa rm e rs d ire ctly g u a ra n te e d by the

C o m m odity C re d it C o rp o ra tio n .......................... 1,111,661 816,838 513,580 533,948 ( 4)

O ther loans to fa rm e rs (e xclu d in g loans on

real e s ta te )................................................................. 5,961,308 6,644,575 6,982,643 7,669,065 8,549,399 2,250 2,499 2,152 1,913 1,809

C om m ercial and in d u s tria l loans (including

open m a rk e t p a p e r)................................................ 48,668,367 52,984,200 60,040,383 71,235,183 80,408,482 192,554 160,682 156,977 144,698 191,599

O therloans to in dividuals fo r personal expenditu re s —to ta l........................................................... 30,524,024 34,531,746 39,814,778 45,497,461 47,992,068 266,162 388,211 391,145 515,673 617,747

Passenger automobile instalment loans............................. 1 0,52 9,1 84 12,437,272 14,66 1,7 20 17,13 9,2 14 18,29 0,1 64 5 J 3 6 13,978 24,370 35,555 42,879 Other retail consumer instalment loans............................ 2 ,8 57 ,68 2 3,2 00 ,61 2 3 ,7 4 8 ,7 8 3 4 ,1 7 6 ,9 5 0 4 ,6 9 2 ,5 3 3 1,203 923 1 ,016 2,039 3 ,769

Residential repair and modernization instalment loans.. 2 ,7 62 ,42 3 2 ,909,590 3,0 12 ,86 1 3 ,1 2 6 ,8 0 4 3 ,2 1 6 ,1 6 2 63,068 66,450 75,397 88,646 105,998 Other instalment loans for personal expenditures............ 5,0 3 4 ,2 8 2 5 ,718,920 6,4 41 ,20 4 7 ,3 88 ,64 0 8 ,0 9 1 ,4 3 9 58,229 88,484 126,027 199,220 244,976 Single-payment loans for personal expenditures............... 9 ,3 40 ,45 3 10,265,352 1 1,95 0,2 10 13,66 5,8 53 13,70 1,7 70 137,926 218,376 164,335 190,213 220,125

All o th e r loans (in c lu d in g o v e rd ra fts )................. 3,898,252 4,024,100 5,143,998 5,187,791 5,170,077 9,071 16,437 13,148 22,467 23,255

Total loans and s e c u ritie s............................ 234,935,796 253,405,396 276,055,894 304,764,851 322,741,521 38,597,340 41,664,208 45,358,160 48,734,714 51,268,927

Bank prem ises, fu rn itu re and fixtu re s, and

o ther real estate— to ta l.......................................... 3,884,209 4,394,800 4,753,588 55 ,144,222 65,619,987 288,287 312,897 342,898 381,225 415,193

B ank p re m is e s .............................................................. 2,609,5&1 3,082,103 \ 243,406 260,904 277,012 308,289 329,951

F urniture and fix tu re s ............................................... 793,893 863,387 / 25,206 29,168 39,117 45,641 57,444

Real estate ow ned o th e r than bank prem ises. 106,984 89,334

( 0 )

0 ) O

19,675 22,825 26,709 27,295 27,798

Investm ents and o th e r assets in d ire ctly representing bank prem ises or o th e r real \

e s ta te ............................................................................ 373,771 359,976

M iscellaneous assets—to ta l........................................ 3,363,993 3,545,190 4,287,807 5,048,319 5,932,978 282,071 320,365 449,987 479,777 517,523

C u sto m e rs’ lia b ility on acceptances o u ts ta n d in g ....................................................................... 1,618,937 1,591,458 1,697,120 1,862,571 2,178,017

O ther a s s e ts ................................................................... 1,745,056 1,953,732 2,590,687 3,185,748 3,754,961 282,071 320,365 449,987 479,777 517,523

PERCENTAGES

To total assets:

Cash and balances w ith o th e r b a n k s ................. 18.2% 16.2% 17.4% 16.1% 17.0% 2.0% 1.7% 1.9% 1.8% 1.6%

U.S. G overnm e nt obliga tions, d ire c t and g ua ranteed .......................................................................... 22.3 20.1 18.2 15.8 13.9 11.6 10.0 8.7 7.5 6.3

O ther s e c u ritie s ............................................................ 9.8 11.1 11.1 11.8 12.0 13.0 11.7 10.7 9.9 10.1

Loans and d is c o u n ts .................................................. 47.3 50.0 50.7 53.6 54.2 72.0 75.1 77.0 79.1 80.3

O ther a s s e ts ................................................................... 2.4 2.6 2.6 2.7 2.9 1.4 1.5 1.7 1.7 1.7

Total capita l a c c o u n ts ................................................ 8.0 8.1 8.0 8.0 7.9 8.4 8.3 7.9 7.8 7.8

To total assets other than cash and U. S. Govern m en t obligations;

Total capital a c c o u n ts ................................................ 13.5 12.8 12.4 11.7 11.4 9.7 9.4 8.9 8.6 8.5

ASSETS AND LIABILITIES OF BANKS 147

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
(Am ounts in thousands of dollars)

T a b l e 1 0 6 . ASSETS AND LIABILITIES OF INSURED COMMERCIAL AND INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES

(STATES AND OTHER AREAS), DECEMBER CALL DATES, 1962 THROUGH 1966— CONTINUED

Insured com m ercial banks Insured m utu al savings banks

Liabilities and capita l Dec. 28, Dec. 20, Dec. 31, Dec. 31, Dec. 31, Dec. 28, Dec. 20, Dec. 31, Dec. 31, Dec. 31,

1962 1963 1964 1965 1966 1962 1963 1964 1965 1966

Total liabilities and capital accounts................. 295,982,703 311,790,848 345,130,205 375,394,111 402,946,336 39,951,409 43,018,983 47,044,184 50,499,716 53,049,468

Business and personal deposits—total.......... 216,424,179 228,042,312 252,983,403 275,205,357 293,565,757 36,073,907 38,627,061 42,714,295 45,848,773 48,212,477

In d iv id u a ls , p a rtn e rsh ip s, and c o rp o ra tio n s

— d e m a n d ............................................................ 123,296,625 123,561,302 134,300,734 139,077,920 144,323,672 257,875 281,375 312,703 345,204 366,110

D eposits of savings and loan associations..................... ) l 2,294,862 < 2 ,298,371

Other deposits of individuals, partnerships, and

r (,) (’) (')

corporations............................................................... ( 136,783,058 142,025,301 257,875 281,375 312,703 345,204 366,110

Individuals, p a rtn e rsh ip s, a nd co rp o ra tio n s

—tim e .................................................................... 88,678,022 100,033,046 112,804,696 130,195,436 142,261,089 35,808,838 38,337,379 42,389,690 45,491,617 47,834,854

Savings deposits............................................................. 71,043,588 76,413,701 82,966,971 9 2,55 4,8 97 9 0,07 6,7 46 3 5,797,789 3 8,324,849 4 2,374,371 45,477,204 4 7,812,107

Deposits accumulated for payment of personal loa n s... 783,826 836,450 956,410 1 ,0 78 ,20 7 1 ,2 23 ,55 3 705 631 800 28 38

( 922,485 620,601

Other deposits of individuals, partnerships, and cor­ > 16,850,608 22,782,895 28,881,315

porations .................................................................... ) { 3 5,639,847 5 0,340,189 10,344 11,899 14,519 14,385 22,709

C e rtified and o ffic e rs ’ checks, le tte rs of

credit, tra v e le rs ’ checks, e tc ....................... 4,449,532 4,447,964 5,877,973 5,932,001 6,980,996 7,194 8,307 11,902 11,952 11,513

Government deposits—total............................. 25,581,722 27,142,510 30,068,312 32,216,843 33,768,382 29,312 28,767 34,844 37,131 41,829

U n ited S tates G overnm e nt— d e m a n d ............. 6,824,658 6,729,214 6,500,876 5,523,816 4,990,164 9,096 5,025 6,574 6,795 6,148

U n ited States G overnm e nt—tim e ..................... 266,143 268,203 270,832 281,330 257,599 56 97 152 407 297

S tates and subd ivisions— d e m a n d ................... 12,064,372 12,261,389 13,497,662 14,241,724 15,059,104 1,711 2,046 1,584 2,079 3,265

S tates and s u bd ivisions— tim e .......... 6,426,549 7,883,704 9,798,942 12,169,973 13,461,515 18,449 21,599 26,534 27,850 32,119

Domestic interbank and postal savings deposits—total................................................. 14,888,976 14,268,764 16,754,488 17,311,718 18,355,321 945 1,236 1,960 1,387 1,330

C om m ercial banks in th e U. S.— d e m and . . . 13,907,380 13,323,080 15,492,798 15,779,062 16,947,228 26 32 88 122 126

C o m m ercial banks in th e U. S.— tim e 240,989 268,710 382,943 510,159 476,896 919 1,204 1,872 1,265 1,204

M u tu a l savings banks in the U. S.— dem and . 684,285 610,294 740,382 860,378 782,525

M utu al savings banks in th e U. S.— t im e .... 38,153 49,252 118,835 162,119 148,672

Postal s a vin g s....................................................... 18,169 17,428 19,530 (0 0 )

Foreign government and bank deposits—

total............................................................... 4,548,654 5,193,043 6,424,074 6,778,763 7,150,699 55

Foreign gove rnm ents, c e n tra l banks, etc.—

d e m a n d .................................................................... 724,335 841,590 826,137 892,867 869,268 22

Foreign gove rnm ents, c e n tra l banks, etc.—

tim e ............................................................................ 2,431,688 3,045,415 3,893,693 4,086,126 4,212,084 33

Banks in fore ign c o u n trie s — d e m a n d .............. 1,265,391 1,177,311 1,454,685 1,529,097 1,784,407

Banks in fore ign co u n trie s—t i m e .................... 127,240 128,727 249,559 270,673 284,940

Total deposits.............................................. 261,443,531 274,646,629 306,230,277 331,512,681 352,840,159 36,104,164 38,657,119 42,751,099 45,887,291 48,255,636

D em and..................................................................... 163,216,578 162,952,144 178,691 M 7 183,836,865 191,737,364 275,902 296,807 332,851 366,152 3 87,162'

T im e.......................................................................... 9 8,22 6,9 53 111,694,485 127,539,030 147,675,816 161,102,795 3 5,828,262 3 8,360,312 4 2,418,248 45,5^ 1,139 4 7,868,474

148 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
M iscellaneous lia b ilitie s —to ta l.............................. 10,786,803

J 3,583,534

1,655,648

5,547,621

11,821,823

3,576,530

1,620,293

6,625,000

11,461,821

2,591,133

1,737,101

7,133,587

13,976,496

/ 2,438,413 

\ 1,898,290 

1,897,569 

7,742,224

18,413,009

2,824,088

1,904,513

2,234,455

11,449,953

503,798 790,247 562,242 655,013 653,735

Federal fu n d s purchase d (b o rro w e d )............

O th e r lia b ilitie s fo r borrow ed m o n e y .............. 7,278 37,647 20,402 90,800 68,876

A cceptances o u ts ta n d in g .....................................

O ther lia b ilitie s .......................................................... 496,520 752,600 541,840 564,213 584,859

Total lia b ilitie s (excluding capital acc o u n ts )....................................................................

C apital accounts—to ta l...............................................

C apital stock, notes, and d e b e n tu re s ............

S u rp lu s .........................................................................

U ndivided p ro fits .....................................................

R eserves......................................................................

M EM O RANDA

C apital stock, notes, and d eb en tu res :

Par or face value— to ta l..........................................

C om m on s to c k ......................................................

272,230,334 286,468,452 317,692,098 345,489,177 371,253,168 36,607,962 39,447,366 43,313,341 46,542,304 48,909,371

23,752,369

6,937,352

11,458,444

4,789,690

566,883

25,322,396

7,450,533

12,163,471

5,113,403

594,989

27,438,107

8,738,836

12,893,189

5,113,007

693,075

29,904,934

10,200,361

13,464,797

5,437,575

802,201

31,693,168

10,648,322

13,998,697

6,166,477

879,672

3,343,447

150

2,363,637

698,915

280,745

3,571,617

533

2,473,815

828,115

269,154

3,730,843

674

2,658,871

759,920

311,378

3,957,412

2,759

2,798,625

822,112

333,916

4,140,097

3,112

2,923,692

821,662

391,631

6,937,652

6,882,362

20,496

34,794

7,450,833

7,282,980

130,014

37,839

8,738,836

7,886,432

810,657

41,747

10,200,361

8,507,770

1,652,701

39,890

10,648,322

8,856,837

1,729,902

61,583

150 533 674 2,759 3,112

C apital notes and d e b e n tu re s ........................

P referred s to c k .....................................................

150 533 674 2,759 3,112

N u m be r of b a n k s ............................................................. 13,126 13,291 13,493 13,547 13,541 331 330 327 329 332

1 Not available.

2 Excludes as of December 31,1965,. and December 31,1966, corporate stocks, other than Federal Reserve bank stock, of national banks; reported with “ Other assets.”

3 Prior to December 31,1965, "Federal fi ndi sold (loaned)” not reported separately; most were included with loans to banks.

4 Included with "Securities of Federal agencies and corporations (not guaranteed by U.S.).”

5 Net of mortgages and other liens; previously included with "Other liabilities.”

Back figures, 1934-1961: See the Annual Report for 1962, pp. 130-133, and earlier reports.

ASSETS AND LIABILITIES OF BANKS 149

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 107. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES 

(STATES AND OTHER AREAS), DECEMBER 31, 1966 

BANKS GROUPED BY CLASS OF BA N K 

(Am ounts in thousands of dollars)

A sse t or lia b ility item Total

M em bers F. R. System N ot 

m em b ers 

N ational State F. R. System

402,946,336 236,601,473 99,491,899 66,852,964

68,651,850

55,903,996

40,831,664

7,550,163

41,720,766

30,354,996

23,778,053

3,935,051

19,048,608

11,560,208

10,019,825

1,224,982

7,882,476

13,988,792

7,033,786

2,390,130

218,455,698

54,099,590

15,319,410

2,460,941

8,792,664

8,549,399

80,408,482

34,290,298

13,701,770

5,170,077

4,336,933

129,648,241

30,535,304

9,111,732

1,728,570

4,624,675

4,284,392

50,554,796

19,832,740

8,218,948

3,368,273

2,611,189

54,560,488

12,042,963

5,299,360

390,595

3,426,505

1,040,100

22,146,077

6,618,693

3,318,273

1,424,775

1,146,853

34,246,969

11,521,323

908,318

341,776

741,484

3,224,907

7,707,609

7,838,865

2,164,549

377,029

578,891

Federal fu n d s sold (lo a n e d ) .......................................................................................

To purchase or ca rry se cu ritie s ...................................................................................................

To fa rm e rs .................................................................................................................

C o m m ercial and in d u s tria l .........................................................................................

C o nsum er in s ta lm e n t .......................................................................................................

Single p a ym e n t to in d ivid u a ls .........................................................................

O th e r loans ...............................................................................................................................

Less- V a luatio n reserves .....................................................................................................

O ther a s s e ts ...................................................

Total lia b ilitie s and capital accounts . ..

D eposits total .............................................................................................................................

11,552,965 7,164,366 3,077,788 1,310,811

402,946,336 236,601,473 99,491,899 66,852,964

352,840,159

144,323,672

142,261,089

5,247,763

28,520,619

18,355,321

7,150,699

6,980,996

207,048,778

84,253,857

83,269,791

3,226,427

16,882,516

12,004,359

3,997,607

3,414,221

85,547,346

35,476,211

31,445,436

1,432,928

60,244,035

24,593,604

27,545,862

588,408

Ind ivid u a ls p a rtn e rs h ip s and co rp o ra tio n s — dem and ....................................................................................................

Individuals, partn e rsh ip s, and co rp o ra tio n s — savings and tim e ........................................................................................

U S G overnm ent ...........................................................................................................

S tates and subd ivisions ......................................................................................................................................... 5,550,718 6,087,385

D om estic in te rb a n k ........................................................................................................... 5,621,393

3,032,312

2,988,348

729,569

120,780

578,427

Foreign go ve rn m e n t and bank .....................................................................................................................................

O ther dep osits .....................................................................................................................................................

Federal fu n d s purchased (b o rro w e d ).................................................................................................................................................

O ther lia b ilitie s fo r borrow ed m oney .....................................................................................................

2,824,088

1,904,513

13,684,408

10,648,322

21,044,846

1,870,810

1,248,983

7,973,994

6,299,933

12,158,975

910,603

587,663

4,638,844

2,586,745

5,220,698

42,675

67,867

1,071,570

1,761,644

3,665,173

O ther lia b ilitie s .........................................................................................................................................................

C apital stock notes and d e b e n tu re s .................................................................................................

O ther capital accou nts ......................................................................................... .............................................

N u m b e r of banks .................................................................................................................................................................. 13,541 4,799 1,350 7,392

1 Excludes corporate stocks, other than Federal Reserve bank stock, of national banks; reported with “ Other assets.”

150 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T a b l e 1 0 8 . ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1966 IN THE UNITED STATES

(STATES AND OTHER AREAS), DECEMBER 31, 1966

BANKS GROUPED ACCORDING TO AM O UNT OF DEPOSITS 

(Am ounts in thousands of dollars)

Asset or lia b ility item All

b a n k s 1

Banks w ith deposits of—

Less

than

$1,000,000

$1,000,000

to

$2,000,000

$2,000,000

to

$5,000,000

$5,000,000

to

$10,000,000

$10,000,000

to

$25,000,000

$25,000,000

to

$50,000,000

$50,000,000

to

$100,000,000

$100,000,000

to

$500,000,000

$500,000,000

or

more

Total assets................................................

Cash and due fro m b a n k s ........................................

O bligations o f th e U.S. G o v e rn m e n t....................

O bligations o f States and s u b d iv is io n s ...............

O ther se c u ritie s 2...........................................................

Loans and d iscounts, net—to ta l............................

Rea! e s ta te ..................................................................

To banks and o th e r fin a n cia l in s titu tio n s ....

Federal fu n d s sold (lo a n e d ).................................

To purchase or ca rry s e c u ritie s .........................

To fa rm e rs ...................................................................

C o m m ercial and in d u s tria l...................................

C onsum er in s ta lm e n t.............................................

Single pa ym e n t to in d iv id u a ls .............................

O ther lo a n s ..................................................................

Less: V aluation re s e rv e s .......................................

O ther a s s e ts .............................................

Total liabilities and capital accounts..............

D eposits— to ta l..............................................................

Demand deposits.......................................

Time and savings d eposits.............................

In d ivid u a ls, p a rtn e rsh ip s, and

co rp o ra tio n s— d e m a n d .........................

In d ivid u a ls, p a rtn e rsh ip s, and

c o rp o ra tio n s —tim e and s a v in g s .............

U.S. G o v e rn m e n t....................................

S tates and s u b d iv is io n s ...........................

D om estic in te rb a n k .................................

Foreign g o v e rn m e n t and b a n k ..................

O ther d e p o s its .......................................

Federal fu n d s purchased (b o rro w e d )............

O ther lia b ilitie s fo r borrow ed m o n e y .............

O ther lia b litie s ..........................................

Capital stock, notes, and d e b e n tu re s ...........

O ther capita l a c c o u n ts ...............................

401,915,698 379,498 2,793,544 15,698,289 25,564,009 41,793,236 28,554,472 26,784,260 73,182,628 187,165,762

68,548,275

55,822,655

40,825,591

7,524,395

68,785

116,167

10,288

21,989

410,619

835,551

101,991

172,359

2,132,933 

4,125.821 

1,1031229 

756,792

3,370,870

5.725,468

2,647,963

1,002,789

5,362,767

8,220,504

4,860,430

1,314,112

3,801,041

5,107,810

3,473,138

701,294

3,778,964

4,404,310

3,174,107

617,574

12,596,795

9,802,691

8,131,251

979,402

37,025,501

17,484,333

17,323,194

1,958,084

217,772,407

53,872,353

15,283,840

2,456,665

8,780,447

8,537,326

80,181,403

34,181,124

13,683,773

5,131,596

4,336,120

158,924

35,115

1,875

876

67,283

16,676

26,923

9,126

2,102

1,052

1,241,931

314,707

13,695

2,475

8,859

463,223

146,444

217,231

72,533

14,883

12,119

7,341,511

2,283,814

70,216

44,581

75,646

1,870,583

1,111,990

1,438,688

455,067

84,656

93,730

12,373,831

4,169,587

157,142

135,918

172,791

1,932,420

2,280,126

2,731,304

839,315

144,995

189,767

21,215,305

7,250,111

346,914

355,680

332,631

1,526,588

4,768,185

5,195,907

1,543,753

265,551

370,015

14,868,412

4,987,548

463,614

306,709

280,573

444,926

3,764,858

3,549,165

1,158,415

196,623

284,019

14,216,689

4,561,456

579,554

246,623

404.529

292,232

4,161,515

3,000,421

1,020,576

239,724

289,941

39,976,678

10,834,257

2,551,790

603,630

1,517,821

689,288

12,746,246

7,543,096

3,298,134

1,011,293

818,877

106,379,126

19,435,758

11,099,040

761,049

5,986,721

1,250,783

51,185,363

10,478,389

5,286,854

3,171,769

2,276,600

11,422,375 3,345 31,093 238,003 443,088 820,118 602,777 592,616 1,695,811 6,995,524

401,915,698 379,498 2,793,544 15,698,289 25,564,009 41,793,236 28,554,472 26,784,260 73,182,628 187,165,762

351,904,803

191,357,907

160,546,896

144,033,719

141,787,187

5,226,711

28,438,900

18,342,205

7,110,075

6,966,006

329,796

226,416

103,380

194,432

93,444

1,513

37,706

1,245

1,456

2,470,658

1 ,4 70 ,61 0

1 ,0 00 ,04 8

1,244,389

918,838

11,750

274,770

8,282

12,629

14,065,384

7 ,4 9 6 ,1 2 3

6,5 69 ,26 1

6,208,017

6,110,611

97,151

1,491,359

61,059

665

96,522

23,100,435

11,68 5,1 12

11,41 5,3 23

9,631,089

10,639,929

217,020

2,311,036

118,157

874

182,330

37,826,754

18,45 9,1 88

1 9,36 7,5 66

15,162,083

18,025,669

422,380

3,483,365

361,758

11,873

359,626

25,752,730

1 2 ,82 6,1 62

1 2,92 6,5 68

10,452,431

11,959,275

302,113

2,242,015

487,965

44,093

264,838

24,124,493

12,06 0,6 12

12,063,881

9,526,783

11,004,785

271,743

2,225,812

772,908

71,450

251,012

65,294,262

36,27 7,7 72

29,01 6,4 90

27,300,887

26,308,860

979,611

5,679,471

4,211,124

105,853

708,456

158,940,291

90,85 5,9 12

68,084,379

64,313,608

56,725,776

2,923,430

10,693,366

12,319,707

6,875,267

5,089,137

2,823,688

1,904,371

13,657,567

10,613,734

21,011,535

100

1,634

13,980

33,988

25

2,262

13,994

81,619

224,986

4,050

17,061

121,201

422.829

1,067,764

8,855

20,934

275,985

631,071

1,526,729

17,725

27,997

671,093

989,152

2,260,515

23,920

20,372

619,384

699,655

1,438,411

47,755

11,100

623,254

664,746

1,312,912

331,055

138,901

1,829,028

1,857,402

3,731,980

2,390,303

1,665,644

9,501,994

5,253,280

9,414,250

N u m be r o f b a n k s ............................................................. 13,440 433 1,624 4,154 3,265 2,447 751 351 320 95

1 This group of banks is the same as the group shown in Table 114 under the heading “ Operating throughout the year.”

2 Excludes corporate stocks, other than Federal Reserve Bank stock, of national banks; reported with “ Other assets.” 

Note: For income and expense data by size of bank, see Tables 115 and 116, pp. 164-167,

Back figures, 1941-1965: See the Annual Report for 1965, p. 145, and earlier reports.

ASSETS AND LIABILITIES OF BANKS 151

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T a b l e 1 0 9 . AVERAGE ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES

(STATES AND OTHER AREAS), BY STATE, 1966 1

(Am ounts in thousands of dollars)

State

A s s e ts 1

Total

Liabilities and capita l a c c o u n ts 1

Cash and 

due fro m 

banks

U.S. Gove rn m e n t 

obliga tions

O ther

securitie s2

Loans

and

discounts

All

o th e r

assets Total

D eposits

Dem and

Tim e and 

savings

Borrow ings 

and o th e r 

liabilities

Total

capital

accounts

Total U nited S ta te s ................................ 62,867,398 56,088,649 47,054,812 210,240,170 10,862,634 387,113,663 340,336,714 185,336,407 155,000,307 15,926,263 30,850,686

50 States and D. C.................................. 62,770,759 55,988,573 46,977,713 209,646,560 10,836,807 386,220,412 339,561,516 184,999,542 154,561,974 15,891,719 30,767,177

O ther a re a s ................................................. 96,639 100,076 77,099 593,610 25,827 893,251 775,198 336,865 438,333 34,544 83,509

State

A la b a m a ................................................. 635,364 741,475 529,869 1,772,266 66,756 3,745,730 3,374,217 2,065,341 1,308,876 63,113 308,400

A la s k a ...................................................... 46,943 62,528 45,706 196,585 13,381 365,143 336,889 174,059 162,830 6,464 21,790

A riz o n a ................................................... 302,425 247,110 266,105 1,515,219 95,560 2,426,419 2,170,886 1,041,780 1,129,106 64,401 191,132

A rk a n s a s ................................................ 440,013 360,560 341,833 1,119,130 39,368 2,300,904 2,092,143 1,313,416 778,727 22,252 186,509

C a lifo rn ia ................................................ 5,763,905 4,483,473 4,644,000 24,822,344 1,554,384 41,268,106 36,353,680 15,337,069 21,016,611 1,941,911 2,972,515

C o lorado................................................. 558,177 491,089 290,395 1,819,384 92,578 3,251,623 2,924,649 1,605,931 1,318,718 64,732 262,242

C o n n e c tic u t........................................... 621,229 436,699 531,531 2,329,779 101,323 4,020,561 3,532,072 2,170,004 1,362,068 145,484 343,005

D elaw are................................................ 184,355 174,662 163,380 553,234 21,764 1,097,395 966,366 665,767 300,599 28,726 102,303

D istrict of C o lu m b ia .......................... 447,452 534,344 132,054 1,394,318 46,209 2,554,377 2,303,595 1,447,040 856,555 56,540 194,242

F lo rid a ..................................................... 1,559,874 1,818,712 1,147,217 4,007,210 257,929 8,790,942 7,893,279 4,575,882 3,317,397 210,756 686,907

G eorgia................................................... 989,316 785,828 583,726 2,978,404 148,194 5,485,468 4,830,600 2,982,839 1,847,761 184,574 470,294

H a w aii..................................................... 145,484 142,080 128,749 684,123 63,714 1,164,150 1,013,725 518,391 495,334 33,798 116,627

132,960 157,276 98,773 585,149 24,345 998,503 907,848 506,447 401,401 17,260 73,395

Illin o is ...................................................... 4,271,244 5,326,431 3,779,709 15,146,622 689,233 29,213,239 25,890,592 13,762,695 12,127,897 1,136,870 2,185,777

In d ia n a ................................................... 1,262,378 1,888,824 842,935 3,964,416 137,288 8,095,841 7,224,989 4,030,299 3,194,690 277,454 593,398

Io w a ......................................................... 763,112 1,069,636 617,618 2,498,531 62,949 5,011,846 4,540,034 2,580,504 1,959,530 45,379 426,433

K a nsas.................................................... 594,516 830,328 536,281 1,832,613 49,805 3,843,543 3,455,414 2,160,022 1,295,392 38,878 349,251

K e n tu c k y ................................................ 714,848 804,033 402,398 1,857,752 59,416 3,838,447 3,463,858 2,232,457 1,231,401 43,727 330,862

L ou isia n a ............................................... 973,398 989,961 604,803 2,334,156 88,028 4,990,346 4,502,230 2,942,484 1,559,746 90,420 397,696

M a in e ....................................................... 121,780 138,695 134,008 569,444 23,598 987,525 865,840 437,470 428,370 34,252 87,433

M a ry la n d ................................................ 628,546 617,366 421,546 2,267,198 80,957 4,015,613 3,591,247 2,143,060 1,448,187 101,652 322,714

M a ssa ch u se tts .................................... 1,574,900 983,724 832,688 5,003,221 255,116 8,649,649 7,377,286 5,228,709 2,148,577 508,292 764,071

M ic h ig a n ................................................ 2,082,201 2,743,823 2,122,675 8,894,109 331,331 16,174,139 14,733,182 6,024,793 8,708,389 370,945 1,070,012

M in n e s o ta ............................................. 1,070,967 1,261,707 930,006 3,519,398 129,301 6,911,379 6,202,194 3,132,161 3,070,033 171,926 537,259

M is s is s ip p i............................................. 384,376 398,750 375,263 1,135,715 52,285 2,346,389 2,119,293 1,359,566 759,727 43,613 183,483

152 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
M is s o u ri.............

M o n ta n a .............

N e b ra ska ...........

N e vada...............

New H a m psh ire

New J e rs e y .......

New M e xico ___

New Y o rk ...........

N orth C a ro lin a .. 

N orth D a k o ta ...

O h io .....................

O kla h o m a ..........

O re g o n ................

P e n n sylva n ia ... 

Rhode Is la n d ...

South C arolina. 

South D a k o ta . .

T e n n e sse e ........

T e x a s ...................

U ta h .....................

V e rm o n t.............

V irg in ia ...............

W a s h in g to n . . . . 

W est V irg in ia ...

W isco n sin ..........

W yo m in g ............

Other area

Puerto Rico. . .. 

V irgin Is la n d s ..

1,677,733

179,928

460,900

94,957

90,683

1,432,484

159,245

15,162,977

864,752

113,047

2,604,020

864,825

463,513

3,364,242

146,227

316,020

145,259

1,054,942

4,073,287

251,235

57,567

793,066

737,337

298,452

990,618

103,680

93,285

3,354

1,678,263

253,441

459,038

140,874

90,633

1,649,486

198,832

7,153,677

606,082

247,296

3,112,443

775,301

501,926

3,293,246

126,159

271,607

295,567

893,245

2,776,470

182,552

95,516

850,320

602,121

560,873

1,547,435

137,056

91,662

8,414

1,267,127

146,949

280,406

100.054 

58,094

1,903,264

115,170

8,900,393

755,159

181,944

2,356,818

502,177

391.054 

3,096,162

244,384

223,870

129,072

707,969

2,482,985

211,291

72,621

673,635

495,889

254,684

872,219

51,055

74,420

2,679

4,767,786

648,375

1,374,261

435,243

444,412

6,367,179

569,583

44,415,953

2,886,228

506,112

9,637,393

2,115,710

1,827,535

13,216,602

863,690

862,312

591,968

2,999,835

10,238,208

900,144

408,652

3,336,370

2,462,448

946,423

3,706,743

317,075

571,956

21,654

165,447

28,021

44,608

30,242

12,017

224,337

25,752

3,338,492

135,920

23,155

307.923 

78,594

115,737

537,014

24,518

39,416

23,006

119,300

584,224

35,082

10,952

119,651

127.923 

43,056 

142,434

15,174

25,133

694

9,556,356

1,256,714

2,619,213

801,370

695,839

11,576,750

1,068,582

78,971,492

5,248,141

1,071,554

18,018,597 

4,336,607 

3,299,765 

23,507,266 

1,404,978

1,713,225

1,184,872

5,775,291

20,155,174

1,580,304

645,308

5,773,042

4,425,718

2,103,488

7,259,449

624,040

856,456

36,795

8,516,311

1,138,426

2,333,802

720,484

605,236

10,335,170

964,568

65,993,519

4,603,129

971,701

16,133,224

3,851,657

2,981,789

20,630,391

1,233,726

1,508,992

1,077,323

5,167,791

17,987,300

1,425,148

584,293

5,155,443

3,972,216

1,857,799

6,587,181

558,789

742,182

33,016

5,243,468

603,273

1,550,091

359,305

326,741

5,098,100

571,723

39,420,888

2,688,546

487,489

7,821,650

2,487,464

1,328,124

10,275,147

557,599

1,143,959

564,907

2,935,562

11,060,691

662,537

200,913

2,552,198

2,162,173

1,031,281

3,137,933

289,594

326,759

10,106

3,272,843

535,153

783,711

361,179

278,495

5,237,070

392,845

26,572,631

1,914,583

484,212

8,311,574

1,364,193

1,653,665

10,355,244

676,127

365,033

512,416

2,232,229

6,926,609

762,611

383,380

2,603,245

1,810,043

826,518

3,449,248

269,195

415,423

22,910

233,270

21.469 

47,333 

14,074 

25,884

364,984

21.469 

6,501,020

215,445

16,906

426,876

95,155

87,331

796,916

58,921

55,232

13,946

158,403

525,019

36,738

11,084

149,787

122,577

42,878

129,129

11,071

33,148

1,396

806,775

91,436

238,078

66,812

64,719

876,596

82,545

6,476,953

429,567

82,947

1,458,497

389,795

230,645

2,079,959

112,331

149,001

93,603

449,097

1,642,855

118,418

49,931

467,812

330,925

202,811

543,139

54,180

81,126

2,383

1 Asset and liability items are averages of the amounts reported for the following call dates: December 31,1965; June 30,1966; and December 31,1966.

2 Excludes as of December 31, 1966, corporate stocks, other than Federal Reserve bank stock, of national banks; reported with “ All other assets” .

Note: For income data by State, see Table 117, pp. 168-177.

Back figures, 1946-1965: See the Annual Report for 1965, pp. 146-147, and earlier reports.

ASSETS AND LIABILITIES OF BANKS 153

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BA NKS GROUPED AC CO RD IN G TO AM O UNT OF DEPOSITS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS

Table 110. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1966

All

banks

N u m be r of banks w ith deposits of—

R atios Less

than

$1,000,000

$1,000,000

to

$2,000,000

$2,000,000

to

$5,000,000

$5,000,000

to

$10,000,000

$10,000,000

to

$25,000,000

$25,000,000

to

$50,000,000

$50,000,000

to

$100,000,000

$100,000,000

to

$500,000,000

$500,000,000

or

more

Ratios of o bligations of S tates and sub divisions to

to tal assets of—

1,442

829

2,586

3,482

2,929

182 415 562 201 66 9 6 1

M ore th a n zero b u t less th a n 1 p e rc e n t.................... 66

131

269

575

370

1,115

77

422

35

242

6

57

4

25

1

13

1

6

5 to 9 9 9 p e rce n t .......................................... 51 242 1,035 974 708 210 88 129 45

10 to 14.99 p e rc e n t............................................................. 18 96 638 935 728 242 141 103 28

15 to 19 9 9 p e rce n t ..................................... 1,517

756

9 33 298 417 461 165 64 57 13

2 0 p e rc e n t o r m o re .. ............................................. 2 33 161 248 207 63 24 16 2

R atios of U. S. G o vern m en t o bligations to to tal

assets of—

Less th a n 10 p e rce n t ................................. 1,228

4,511

33 76 301 265 266 97 58 84 48

10 to 19.99 p e rce n t ................................................. 94 318 1,017 1,143 1,093 401 204 196 45

2 0 to 2 9 .9 9 p e rc e n t............................................................. 4,200 118 488 1,315 1,181 783 205 74 34 2

3 0 to 3 9 9 9 p e rc e n t .................. 2,307 95 421 983 510 236 42 14 6

4 0 to 49 99 p e rce n t 893 70 228 406 129 54 5 1

50 to 59 9 9 p e rce n t 301 29 97 123 39 10 2 1

n^rront nr mnrp 101

27

20 35 34 7 5

Ratios of loans to to tal assets of— I pcc than 1 0 nprrpnt 10 9 5 1 2

10 to 19 9 9 p e rce n t 188 27 47 69 30 9 3 3

2 0 to 29 99 p e rce n t ... 755 60 180 304 150 52 4 4 1

3 0 to 39 99 p e rc e n t............................................................. 2,140 120 341 816 506 275 51 18 12 1

4 0 to 49 99 p e rc e n t ..................................... 4,276

4,265

1,890

3,642

5,373

2,747

106 514 1,314 1,120 825 236 89 63 9

50 to 59 99 p e rc e n t............................................................. 98 415 1,120 1,029 863 323 164 184 69

60 p e rce n t o r m o re .............................................................. 38 157 551 438 421 135 74 60 16

Ratios of cash and due fro m banks to to tal assets of—

Less th a n 10 p e rce n t ..................................... 75 403 1,199 918 711 194 99 38 5

10 to 14 99 p e rce n t . ........................................... 110 599 1,605 1,399 1,075 332 125 114 14

15 to 19 99 p e rc e n t............................................................. 106 349 839 637 469 149 83 83 32

2 0 to 2 4 99 p e rce n t ................................... 1,154

401

77 178 358 218 147 67 32 52 25

25 to 29 99 p e rce n t ........................................... 41 83 121 69 29 9 11 21 17

3 0 to 3 4 99 p e rc e n t . ............................................... 124 20 29 32 25 11 1 1 3 2

qk nprrpnt nr mnrp 100 30 22 25 8 5 1 9

154 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Ratios of to tal d em an d d ep osits to to tal deposits o f -

Less than 20 p e rc e n t...........................................................

20 to 29.99 p e rc e n t..............................................................

30 to 39.99 p e rc e n t.............................................................

40 to 49.99 p e rc e n t.............................................................

50 to 59.99 p e rc e n t.............................................................

60 to 69.99 p e rc e n t.............................................................

70 to 79.99 p e rc e n t.............................................................

80 percent or m o re ..............................................................

Ratios o f to tal ca p ital accounts to to tal assets

oth er th an cash and due from banks, U. S.

G overnm ent obligations, C.C.C. loans, and

F.H .A . and V.A. real estate loans of—

Less than 10 p e rc e n t..........................................................

10 to 14.99 p e rc e n t.............................................................

15 to 19.99 p e rc e n t............................................................

20 to 24.99 p e rc e n t.............................................................

25 to 29.99 p e rc e n t.............................................................

30 to 34.99 p e rc e n t.............................................................

35 to 39.99 p e rc e n t.............................................................

40 percen t or m o re ..............................................................

Ratios of to tal ca p ital accounts to to tal assets of—

Less than 4 p e rc e n t..............................................................

4 to 5.99 p e rc e n t....................................................................

6 to 7.99 p e rc e n t....................................................................

8 to 9.99 p e rc e n t....................................................................

10 to 11.99 p e rc e n t..............................................................

12 to 14.99 p e rc e n t..............................................................

15 percent or m o re ...............................................................

N u m b er of b a n k s ........................................................................

84 5 4

623 7 42

2,098 17 173

3,391 46 301

3,315 73 381

2,199 85 316

950 83 202

881 143 244

1,999 3 37

6,208 49 370

2,912 98 482

1,221 89 333

509 53 179

267 46 99

153 35 58

272 86 105

35 1

980 1 18

4,754 24 270

4,165 94 464

1,969 109 385

1,033 111 315

605 120 210

13,541 459 1,663

Back figures, 1958-1965: See the Annual Report for 1965, pp. 148-149, and earlier reports.

22 28 19 5 1

195 181 140 34 15 6 3

612 584 461 139 68 39 5

1,019 852 746 224 107 79 17

1,068 816 589 192 96 79 21

651 518 373 106 40 73 37

304 175 88 36 22 28 12

308 120 31 16 4 15

265 486 708 260 128 96 16

1,637 1,903 1,359 425 198 194 73

1,304 625 299 55 17 26 6

560 167 54 10 6 2

212 50 10 1 2 2

88 21 11 1 1

47 11 2

66 11 4

3 5 12 7 6 1

121 264 337 144 50 40 5

1,147 1,377 1,168 353 196 171 48

1,488 1,047 675 193 81 86 37

818 402 180 40 13 17 5

411 120 54 13 4 5

191 59 21 2 2

4,179 3,274 2,447 752 352 320 95

ASSETS AND LIABILITIES OF BANKS 155

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table

Table

Table

Table

Table

Table

Table

Table

Table

Table

INCOME OF INSURED BANKS

111. Income of insured commercial banks in the United States (States and other 

areas), 1958-1966

112. Ratios of income of insured commercial banks in the United States (States 

and other areas), 1958-1966

113. Sources and disposition of total income, insured commercial banks in the 

United States (States and other areas), 1958-1966

114. Income of insured commercial banks in the United States (States and other 

areas), 1966

Banks grouped by class of bank

115. Income of insured commercial banks operating throughout 1966 in the 

United States (States and other areas)

Banks grouped according to amount of deposits

116. Ratios of income of insured commercial banks operating throughout 1966 

in the United States (States and other areas)

Banks grouped according to amount of deposits

117. Income of insured commercial banks in the United States (States and other 

areas), by State, 1966

118. Income of insured mutual savings banks, 1958-1966

119. Ratios of income of insured mutual savings banks, 1958-1966

120. Sources and disposition of total income, insured mutual savings banks, 

1958-1966

156 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
The income data received and published by the Corporation relate 

to commercial and mutual savings banks insured by the Corporation.

Commercial banks

Reports of income and dividends are submitted to the Federal 

supervisory agencies on either a cash or an accrual basis.

Income data are included for all insured banks operating at the 

end of the respective years, unless indicated otherwise. In addition, 

appropriate adjustments have been made for banks in operation 

during part of the year but not at the end of the year. Data for 5 

insured branches in Guam of 2 insured banks in California and 

Hawaii, for 7 insured branches in New York of 2 insured banks in 

Puerto Rico, for 16 insured branches in Puerto Rico and for 7 

insured branches in the Virgin Islands of insured banks in New 

York are not available.

The uniform Report of Income and Dividends (formerly called 

Report of Earnings and Dividends) was revised extensively in 1961. 

New items were added, combining components previously included 

in other items; and some items were subsumed into new categories. 

Thus certain items, even carrying the same designation (e.g. other 

current operating expenses), are not comparable with data reported 

for prior years.

The revised form breaks out the following items not previously 

available separately: (1) benefits to officers and other employees; 

(2) net occupancy expense of bank premises, with a supporting 

schedule; (3) furniture and equipment expense (including costs 

related to the purchase or rental of automated data processing 

systems); and (4) losses on securities sold.

Two expense items previously reported separately have been combined with other items: (1) taxes other than on net income; and

(2) recurring depreciation on banking house, furniture and fixtures. 

Taxes on bank premises, social security taxes paid in behalf of 

building employees, and recurring depreciation on banking house 

are now included under occupancy expense of bank premises. Other 

social security taxes are included with officer and employee benefits. 

Recurring depreciation on furniture and fixtures is now included 

with furniture and equipment expense.

Revenue and expenses incident to “ Federal funds” transactions 

have been classified as “ Interest and discount on loans” and “ Interest and discount on borrowed money,” respectively.

In addition to other minor changes in classification, new designations have been given to certain items. For example, the term “ net 

income” is the new equivalent of the former term “ net profits.” A 

further change entailed the division of officers and other employees 

into two groups: those engaged in banking operations, and those 

concerned with building operations.

Mutual savings banks

The present report of income and dividends for mutual savings 

banks was first used by the Corporation for the calendar year 1951. 

For a discussion of the history and principles of this report see pp. 

50-52 in Part Two of the 1951 Annual Report.

Sources of data

National banks and State banks in the District of Columbia not 

members of the Federal Reserve System: Office of the Comptroller 

of the Currency.

State banks members of the Federal Reserve System: Board of 

Governors of the Federal Reserve System.

Other insured banks: Federal Deposit Insurance Corporation.

INCOME OF INSURED BANKS 157

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 111. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1958-1966

(Am ounts in thousands of dollars)

Incom e item 19 58 1 9 59 19 60 1961 1962 1963 1 9 6 4 1965 1966

8,500,949 9,669,352 10,723,545 11,069,604 12,218,959 13,509,713 15,024,487 16,817,187 19,508,414

1,544,023

501,978

5,046,782

1 732,174 1,790,341 1,901,732 2,093,207 2,176,454 2,240,389 2,224,711 2,317,794

546,253 578,783 629,134 759,030 921,060 1,085,334 1,285,287 1,531,517

5,856,688 6,698,655 6,891,442 7,578,200 8,516,837 9,612,079 10,999,867 13,042,757

94,674 111,991 108,655 117,259 139,645 155,478 173,159 204,996 243,643

486,507 531,916 589,954 630,458 681,243 728,857 781,405 842,775 915,049

191,408 205,935 218,566 223,283 237,446 248,362 280,289 304,276 354,036

379,395 426,016 460,251 502,871 543,916 573,252 629,694 689,628 756,130

256,183 258,381 278,340 473,425 '186,272 >189,413 *222,138 1 265,647 1347,488

5,612,723 6,264,207 6,932,820 7,440,492 8,589,177 9,714,980 10,897,460 12,486,120 14,561,852

827,142 892,657 966,643 21,028,869 n , 098,146 21 ,183,264 21,284,140 21,392,765 21,526,300

1,573,330

(3)

1,684,159

(3)

1,831,323

(3)

21,869,961 21,975,406 22 ,101,111 22 ,234,922 22 ,369,259 22 ,569,442

377,494 419,098 457,033 490,732 525,692 598,768

48,271 51,866 56,292 59,794 63,236 67,469 72,176 77,093 83,791

1,380,575 1 580,250 1,785,086 2,106,645 2,845,283 3,464,308 4,088,061 5,070,781 6,259,472

24,161 78,350 87,385 37,997

(4)

64,325 106,517 127,277 189,519 301,768

Taxes other than on net incom e ........................... 221,571 252,763 285,801 (4) (4) (4) (4) e )

R ecurring depreciation on banking house, fu rn itu re and

fixtures .................................................... 168,371

(6)

191,424

((i>

212,493 (5) (6) (5) (5) (5) ( 5)

Occupancy expense of bank prem ises— net .......................... (6) 510,691 555,670 608,462 670,243 731,573 802,060

Furniture and eq u ip m en t ............................................ (7) (7) (7) 224,852 267,885 311,518 362,301 411,889 458,695

O th er cu rren t operatin g expenses .............................................. 1,369,305 1,532,739 1,707,797 81,224,189 *1,300,128 81,415,298 *1,567,608 81,717,549 81,961,556

Net current operating earnings ......................... 2,888,223 3,405,145 3,790,725 3,629,112 3,629,782 3,794,733 4,127,027 4,331,067 4,946,562

Recoveries, transfers from valuation reserves, and profits—

total .............................................................................. 868,115 328,889 574,826 708,171 467,061 468,450 322,104 390,368 341,711

On securities:

Profits on securities sold or redeem ed ........................... 681,554 47,277 329,322 453,730 256,987 167,445 74,723 84,619 62,464

Recoveries .................................................... 9,646 27,946 12,927 9,934 6,241 4,046 6,633 7,114 5,077

Transfers from valuation reserves ........................... 57,145 111,447 55,568 86,574 56,761 60,516 57,284 97,435 100,950

On loans:

Recoveries ...................................................................................... 22,439 20,551 25,684 16,825 16,902 17,913 17,383 17,962 15,585

Transfers from valuation reserves .......................................... 42,158 57,607 70,211 51,817 56,610 131,235 62,313 84,001 55,762

55,176 64,062 81,114 89,291 73,560 87,295 103,768 99,237 101,873

Losses, charge-offs, and tran sfers to valuation reserves—

783,213

93,657

1,361,515

745,081

978,422 935,461 836,665 883,637 1,017,299 1,177,540 1,574,027

On securities:

Losses on securities sold .............................................. 219,767 / 44,290 58,939 49,887 88,397 85,045 454,911

C harge-offs prior to sale .................................................. \ 21,354 12,603 12,827 11,256 9,224 10,198

Transfers to valuation reserves .............................................. 268,159 168,003 156,232 224,678 95,039 63,530 72,213 63,370 78,932

On loans:

Losses and charge-offs ...................................................... 25,053 25,459 35,760 31,194 30,107 29,588 32,385 36,188 31,251

Transfers to valuation reserves ................................. 282,227 318,965 451,667 481,200 528,710 609,059 666,040 846,877 775,792

114,117 104,006 114,996 132,745 111,267 118,746 147,008 136,836 222,943

Net income before related taxes.............................................. 2,973,128 2,372,519 3,387,129 3,401,822 3,260,178 3,379,546 3,431,832 3,543,895 3,714,246

158 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Taxes on net income—total......................................................

F ed eral..........................................................................................................

S ta te ...............................................................................................................

Net income after related taxes.................................................

Dividends and interest on capital—total.................................

Cash dividends declared on com m on sto ck..............................

Dividends declared on p referred stock and interest on

capital notes and d e b e n tu re s.......................................................

Net additions to capital from income......................................

1,271,459

1,198,890

72,570

884,458

832,797

51,661

1,384,397

1,300,940

83,457

1,406,102

1,317,292

88,810

1,256,382

1,159,725

96,657

1,226,783

1,130,629

96,154

1,148,203

1,050,624

97,579

1,029,162

927,423

101,739

1,029,906

911,585

118,321

1,701,667 1,488,061 2,002,732 1,995,720 2,003,796 2,152,763 2,283,629 2,514,733 2,684,340

725,866

723,500

2,366

776,386

774,167

2,219

831,546

829,522

2,024

895,053

893,230

1,823

941,189

939,426

1,763

993,374

990,039

3,335

1,088,310

1,062,561

25,749

1,202,349

1,146,186

56,163

1,307,387

1,240,048

67,339

975,802 711,675 1,171,186 1,100,667 1,062,607 1,159,389 1,195,319 1,312,384 1,376,953

Memoranda

Recoveries credited to valuation reserves (not included in

recoveries above):

On securites................................................................................................

On lo an s........................................................................................................

Losses charged to valuation reserves (n ot included in losses

above):

On securities..............................................................................................

On loans.......................................................................................................

10,410

69,073

19,741

127,515

5,585

73,790

207,061

122,315

18,294

68,232

47,716

264,405

9,911

73,844

22,463

249,500

4,714

84,863

16,305

238,825

6,216

96,897

17,314

323,475

4,515

157,791

43,683

394,181

4,158

124,062

25,761

429,490

3,300

143,859

60,282

545,647

Average assets and liabilities9

Assets—total...............................................................................

Cash and due from b a n k s ...................................................................

United States G overnm ent obligations........................................

Other securities........................................................................................

Loans and discou nts..............................................................................

All other assets.........................................................................................

Liabilities and capital—total.....................................................

Total d ep osits............................................................................................

Demand deposits........................................................................................

Time and savings deposits.........................................................................

Borrowings and o th er liabilities........................................................

Total capital acco u n ts...........................................................................

228,359,687

46,766,041

62,355,819

19,237,561

95,666,835

4,333,431

237,577,389

46,881,654

61,878,548

20,284,525

103,872,351

4,660,311

246,776,722

49,317,003

57,773,429

20,092,632

114,275,450

5,318,208

254,198,199

46,613,211

61,792,135

21,660,321

117,969,985

6,162,547

274,220,778

49,438,670

64,519,914

25,761,084

127,789,110

6,712,000

298,940,778

50,997,566

64,058,431

31,421,875

145,028,233

7,434,673

325,490,626

54,449,343

61,439,390

36,360,062

164,816,703

8,425,128

357,214,409

59,013,596

59,419,551

41,540,772

187,661,591

9,578,899

387,113,663

62,867,398

56,088,649

47,054,812

210,240,170

10,862,634

228,359,687

206,196,015

143,813,475

62,382,540

4,440,097

17,723,575

237,577,389

213,428,979

146,599,745

66,829,234

5,410,250

18,738,160

246,776,722

220,099,028

150,451,481

69,647,547

6,712,522

19,965,172

254,198,199

225,214,703

147,556,175

77,658,528

7,694,509

21,288,987

274,220,778

243,319,550

153,849,494

8 9,470,056

8,197,420

22,703,808

298,940,778

264,069,489

159,561,973

104,507,516

10,587,389

24,283,900

325,490,626

287,988,560

1 68,382,122

1 19,606,438

11,110,692

26,391,374

357,214,409

315,643,533

178,089,360

137,554,173

12,750,015

28,820,861

387,113,663

340,336,714

185,336,407

155,000,307

15,926,263

30,850,686

N um ber of em ployees (including building employees),

D ecem ber 31:

Active officers............................................................................................

Other em p lo y e e s ......................................................................................

95,308

457,023

98,934

481,666

103,211

506,596

107,279

526,101

112,458

543,695

117,147

531,820

124,351

578,307

130,486

601,677

138,206

639,155

N um ber of banks, D ecem ber 3 1 ......................................................... 13,124 13,114 13,126 13,115 13,124 13,291 13,493 13,547 13,541

1 Excludes rentals from bank premises; included with “Occupancy expense of bank premises—net.”

2 Excludes compensation of building officers and other employees; included with “Occupancy expense of bank premises—net.”

3 Included with “Other current operating expenses”, except Social Security taxes paid on bank's account which were included with “Taxes other than on net income.”

4 Included with “Officer and employee benefits”, “Occupancy expense of bank premises—net”, and "Other current operating expenses.”

5 Included with “Occupancy expense of bank premises—net", and "Furniture and equipment.”

6 Included with "Taxes other than on net income”, "Recurring depreciation on banking house, furniture and fixtures”, and “Other current operating expenses.”

7 Included with “Recurring depreciation on banking house, furniture and fixtures”, and "Other current operating expenses.”

8 Not comparable with amounts reported for previous years; see footnotes 3, 4, 6, and 7.

9 For 1958 through 1960 and for 1964 through 1966, averages of amounts reported at beginning, middle, and end of year. For 1961 and 1962, averages of amounts for four consecutive official call dates beginning

with the end of the previous year and ending with the fall call of the current year. For 1963, averages of amounts reported at 1962 year-end, 1963 spring, mid-year, and year-end calls.

Note: Due to rounding differences, data for 1958-1959 may not add to totals.

Back figures, 1984-1957: See the following Annual Reports: 1957, pp. 118-119; 1950, pp. 250-251; and 1941, pp. 158-159.

INCOME OF INSURED BANKS 159

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T a b l e 1 1 2 . RATIOS OF INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1958-1966

Incom e item 19 5 8 1959 1 9 60 1961 1962 19 63 19 6 4 19 65 19 66

$100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00

18.16 17.91 16.69 17.18 17.13 16.11 14.91 13.23 11.88

5.91 5.65 5.40 5.68 6.21 6.82 7.22 7.64 7.85

60.48 61.73 63.48 63.31 63.16 64.19 65.13 66.63 68.11

5.72 5.50 5.50 5.70 5.58 5.39 5.20 5.01 4.69

2.25 2.13 2.04 2.02 1.94 1.84 1.87 1.81 1.81

7.48 7.08 6.89 >6.11 *5.98 >5.65 >5.67 *5.68 *5.66

66.02 64.78 64.65 67.22 70.29 71.91 72.53 74.25 74.64

28.80 27.19 26.62 226.73 225.67 224.81 223 . 90 222.83 220.99

(3) (3) (3) 3.41 3.43 3.38 3.27 3.13 3.07

16.24 16.34 16.65 19.03 23.28 25.64 27.21 30.15 32.09

2.61 2.61 2.66 (4) (4) (4) (4) (4) ( 4)

1.98 1.98 1.98 (5) (5) (5) (5) (5) ( 5)

(6) (6) (6) 4.61 4.55 4.50 4.46 4.35 4.11

(7) (7) (7) 2.03 2.19 2.31 2.41 2.45 2.35

16.39 16.66 16.74 811.41 *11.17 811.27 *11.28 811.34 *12.03

33.98 35.22 35.35 32.78 29.71 28.09 27.47 25.75 25.36

3.72 4.07 4.35 4.35 4.45 4.52 4.62 4.71 5.04

2.46 2.64 2.81 2.92 3.13 3.25 3.35 3.50 3.76

1.26 1.43 1.54 1.43 1.32 1.27 1.27 1.21 1.28

.38 .14 .23 .28 .17 .16 .10 .11 .09

.34 .57 .40 .37 .30 .30 .32 .33 .41

1.30 1.00 1.37 1.34 1.19 1.13 1.05 .99 .96

.75 .63 .81 .79 .73 .72 .70 .70 .69

16.30 18.17 18.99 17.05 15.99 15.63 15.64 15.03 16.03

4.89 1.76 2.88 3.32 2.06 1.93 1.22 1.35 1.11

4.42 7.27 4.90 4.39 3.69 3.64 3.86 4.08 5.10

16.77 12.66 16.97 15.98 14.36 13.92 13.00 12.30 12.04

7.17 4.72 6.94 6.61 5.53 5.06 4.35 3.57 3.34

9.60 7.94 10.03 9.37 8.83 8.86 8.65 8.73 8.70

4.09 4.14 4.16 4.20 4.15 4.09 4.12 4.17 4.24

5.51 3.80 5.87 5.17 4.68 4.77 4.53 4.56 4.46

5.37 5.75 5.96 5.94 6.04 5.98 5.94 5.97 6.32

2.48 2.80 3.10 3.08 3.24 3.40 3.65 3.74 4.13

2.61 2.69 2.88 2.90 2.95 2.93 2.98 3.09 3.25

.34 .36 .39 .43 .44 .46 .46 .47 .49

2.21 2.36 2.56 2.71 3.18 3.31 3.42 3.69 4.04

13,124 13,114 13,126 13,115 13,124 13,291 13,493 13,547 13,541

Amounts per $100 of current operating revenue

Current operating revenue—total.......................................................................................

Interest on U. S. Government obligations......................................................................

Interest and dividends on other securities.....................................................................

Income on loans................................................................................................................

Service charges on deposit accounts..............................................................................

Other charges, commissions, fees, etc...........................................................................

Other current operating revenue....................................................................................

Current operating expenses—total....................................................................................

Salaries, wages, and fees.................................................................................................

Officer and employee benefits.........................................................................................

Interest on time and savings deposits............................................................................

Taxes other than on net income......................................................................................

Recurring depreciation on banking house, furniture and fixtures.............................

Occupancy expense of bank premises—net..................................................................

Furniture and equipment.................................................................................................

Other current operating expenses.................................................................................

Net current operating earnings..........................................................................................

Amounts per $100 of total assets9

Current operating revenue—total....................................................................................

Current operating expenses—total.................................................................................

Net current operating earnings.......................................................................................

Recoveries, transfers from valuation reserves, and profits—total..............................

Losses, charge-offs, and transfers to valuation reserves—total..................................

Net income before related taxes.....................................................................................

Net income after related taxes........................................................................................

Amounts per $100 of total capital accounts9

Net current operating earnings.......................................................................................

Recoveries, transfers from valuation reserves, and profits—total..............................

Losses, charge-offs, and transfers to valuation reserves—total..................................

Net income before related taxes.....................................................................................

Taxes on net income.........................................................................................................

Net income after related taxes........................................................................................

Cash dividends declared...................................................................................................

Net additions to capital from income..............................................................................

Special ratios9

Income on loans per $100 of loans................................................................................

Income on U. S. Government obligations per $100 of U. S. Government obligations

Income on other securities per $100 of other securities.............................................

Service charges per $100 of demand deposits.............................................................

Interest paid per $100 of time and savings deposits...................................................

Number of banks, December 3 1 .........................................................................................

Note: For footnotes 1 through 9, see Table III, p. 159.

Back figures, 1934-1957: See the following Annual Reports: 1957, pp. 120-121; 1950, pp. 252-253; and 1941, pp. 160-161.

160 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table. 113. SOURCES AND DISPOSITION OF TOTAL INCOME, INSURED COMMERCIAL BANKS IN THE UNITED

STATES (STATES AND OTHER AREAS), 1958-1966

(Am ounts in m illio ns of dollars)

Incom e item 19 5 8 19 59 1 9 60 1961 1 9 62 19 6 3 1 9 6 4 1965 1 9 6 6

Amount

Total income......................................................................................................................... 9,369 9,998 11,298 11,778 12,686 13,978 15,347 17,208 19,850

Sources

L o ans.................................................................................................... ............................................................. 5,141 5,969 6,807 7,009 7,718 8,672 9,785 11,205 13,286

U.S. G overnm ent obligations................................................................................................................. 1,544 1,732 1,791 1,902 2,093 2,176 2,240 2,225 2,318

O ther securities............................................................................................................................................ 502 546 579 629 759 921 1,086 1,285 1,532

Service charges on d ep o sits.................................................................................................................. 487 532 590 630 681 729 781 843 915

O ther current in c o m e ................................................................................................................................ x827 *890 1957 900 968 1,011 1,132 1,260 1,457

Recoveries, e tc .............................................................................................................................................. 868 329 575 708 467 468 322 390 342

Disposition

Salaries and w ages2.................................................................................................................................... 2,449 2,629 2,854 3,336 3,556 3,808 4,082 4,365 4,778

In terest on dep o sits................................................................................................................................... 1,381 1,580 1,785 2,107 2,845 3,464 4,088 5,071 6,259

O ther current ex p en se s........................................................................................................................... 31,783 32 ,055 32 ,293 1,998 2,188 2,442 2,728 3,051 3,524

Charge-offs, e tc ............................................................................................................................................ 783 1,362 979 935 837 884 1,017 1,178 1,574

Incom e ta x e s .................................................................................................................................................. 1,271 884 1,384 1,406 1,256 1,227 1,148 1,029 1,030

Dividends and interest on c a p ita l....................................................................................................... 726 776 832 895 941 993 1,088 1,202 1,307

Additions to capital acco u n ts................................................................................................................ 976 712 1,171 1,101 1,063 1,159 1,195 1,312 1,377

Percentage distribution

Total income........................................................................................................................ 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Sources

Loans.................................................................................................................................................................. 54.9 59.7 60.2 59.5 60.8 62.0 63.8 65.1 66.9

U.S. G overnm ent obligations................................................................................................................. 16.5 17.3 15.9 16.2 16.5 15.6 14.6 12.9 11.7

O ther securities............................................................................................................................................ 5.3 5.5 5.1 5.3 6.0 6.6 7.1 7.5 7.7

Service charges on d ep o sits.................................................................................................................. 5.2 5.3 5.2 5.4 5.4 5.2 5.1 4.9 4.6

O ther cu rre n t in co m e................................................................................................................................ 8.8 8.9 8.5 7.6 7.6 7.2 7.3 7.3 7.4

Recoveries, e tc ............................................................................................................................................. 9.3 3.3 5.1 6.0 3.7 3.4 2.1 2.3 1.7

Disposition

Salaries and w ag e s..................................................................................................................................... 26.1 26.3 25.3 28.3 28.0 27.2 26.6 25.4 24.0

Interest on d ep o sits................................................................................................................................... 14.7 15.8 15.8 17.9 22.4 24.8 26.6 29.5 31.5

O ther cu rre n t ex p en se s........................................................................................................................... 19.1 20.6 20.3 17.0 17.2 17.5 17.8 17.7 17.7

Charge-offs, e tc ............................................................................................................................................ 8.4 13.6 8.6 7.9 6.6 6.3 6.6 6.8 8.0

Incom e ta x e s .................................................................................................................................................. 13.6 8.8 12.2 11.9 10.0 8.8 7.5 6.0 5.2

Dividends and interest on c a p ita l....................................................................................................... 7.7 7.8 7.4 7.6 7.4 7.1 7.1 7.0 6.6

Additions to capital acco u n ts................................................................................................................ 10.4 7.1 10.4 9.4 8.4 8.3 7.8 7.6 7.0

1 For description of changes in report form made in 1961, see p. 157. Rentals from bank premises are included in "other current income” in 1958-1960, and in net “other current expenses” in 1961-1966.

2 Includes in each year fees paid to directors and committees. In 1961-1966 includes officer and employee benefits; these were included in “other current expenses” in 1958-1960. In 1961-1966 excludes

salaries, wages, and benefits of officers and employees in building department which are included in “other current expenses.”

3 Not comparable with amounts shown in 1961-1966; see footnotes 1 and 2.

Note: Due to rounding differences, components may not add to totals.

INCOME OF INSURED BANKS 161

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T a b l e 1 1 4 . INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1966

BANKS GROUPED BY CLASS OF BANK

(Amounts in thousands of dollars)

Incom e item Total

M em bers F.R. System Not

m em bers

F.R. System

O perating

throughout

the year

O perating

less than

National State full year

Current operating revenue—total............................................................................... 19,508,414 11,305,378 4,755,000 3,448,036 19,497,005 11,409

In terest on U. S. G overnm ent obligations.............................................................................. 2,317,794 1,231,785 469,831 616,178 2,315,758 2,036

In terest and dividends on other secu rities........................................................................... 1,531,517 901,126 363,957 266,434 1,530,927 590

Interest and discount on lo an s.................................................................................................... 13,042,757 7,700,685 3,188,090 2,153,982 13,035,499 7,258

Service charges and fees on lo an s............................................................................................ 243,643 135,244 62,011 46,388 243,406 237

Service charges on deposit acco u n ts....................................................................................... 915,049 532,561 172,132 210,356 914,598 451

O ther charges, comm issions, fees, e tc .................................................................................... 354,036 194,856 70,522 88,658 353,763 273

T rust d e p a rtm e n t............................................................................................................................... 756,130 395,355 327,117 33,658 756,117 13

O ther cu rre n t operating re ven u e............................................................................................... 347,488 213,766 101,340 32,382 346,937 551

Current operating expenses—total............................................................................. 14,561,852 8,451,916 3,481,992 2,627,944 14,549,565 12,287

Salaries— o fficers................................................................................................................................ 1,526,300 822,843 324,214 379,243 1,524,366 1,934

Salaries and wages—other em ployees.................................................................................... 2,569,442 1,489,942 650,557 428,943 2,567,552 1,890

Officer and em ployee b en efits..................................................................................................... 598,768 351,208 155,684 91,876 598,445 323

Fees paid to directors and co m m itte e s ................................................................................... 83,791 39,895 12,797 31,099 83,721 70

Interest on tim e and savings dep osits.................................................................................... 6,259,472 3,733,005 1,480,411 1,046,056 6,256,578 2,894

Interest on borrowed m o n e y ........................................................................................................ 301,768 169,896 123,988 7,884 301,723 45

Occupancy expense of bank prem ises— n e t......................................................................... 802,060 449,563 204,044 148,453 800,858 1,202

Furniture and e q u ip m e n t............................................................................................................... 458,695 271,484 97,893 89,318 458,228 467

O ther current operating expenses............................................................................................. 1,961,556 1,124,080 432,404 405,072 1,958,094 3,462

Net current operating earnings.................................................................................. 4,946,562 2,853,462 1,273,008 820,092 4,947,440 -878

Recoveries, transfers from valuation reserves, and profits—total.........................

On securities:

341,711 228,598 55,246 57,867 341,582 129

Profits on securities sold or re d e e m e d ............................................................................... 62,464 37,999 12,032 12,433 62,392 72

R ecoveries......................................................................................................................................... 5,077 3,353 480 1,244 5,074 3

Transfers from valuation reserves........................................................................................

On loans:

100,950 79,483 15,094 6,373 100,930 20

Recoveries.......................................................................................................................................... 15,585 7,179 1,842 6,564 15,570 15

Transfers from valuation re serves........................................................................................ 55,762 40,162 5,033 10,567 55,760 2

All o th e r................................................................................................................................................... 101,873 60,422 20,765 20,686 101,856 17

Losses, charge-offs, and transfers to valuation reserves—tota 1.............................

On securities:

1,574,027 910,315 419,472 244,240 1,573,211 816

Losses on securities sold............................................................................................................ 454,911 236,736 175,585 42,590 454,768 143

Charge-offs prior to sa le ............................................................................................................. 10,198 4,715 1,065 4,418 10,199 - 1

Transfers to valuation re s e rv e s ..............................................................................................

On loans:

78,932 53,501 13,739 11,692 78,899 33

Losses and charge-offs................................................................................................................ 31,251 15,105 2,807 13,339 31,237 14

Transfers to valuation reserves.............................................................................................. 775,792 435,497 193,926' 146,369 775,352 440

All o th e r................................................................................................................................................... 222,943 164,761 32,350 25,832 222,756 187

Net income before related taxes................................................................................ 3,714,246 2,171,745 908,782 633,719 3,715,811 -1,565

162 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Taxes on net income—total......................................................................................... 1,029,906

911,585

118,321

607,047

545,591

61,456

266,608

222,034

44,574

156,251

143,960

12,291

1,029,882

911,576

118,306

24

9

S ta te ..................................................................................................................................................... 15

Net income after related taxes...................................................................................

Dividends and interest on capital—to ta l...................................................................

Cash dividen ds declared on com m on s to c k .......................................................................

D ividends declared on p referred stock and in terest on capital n o te s and 

d e b e n tu re s ............ .............................................................................................................

2,684,340 1,564,698 642,174 477,468 2,685,929 -1,589

1,307,387

1,240,048

67,339

777,845

736,591

41,254

364,784

344,542

20,242

164,758

158,915

5,843

1,307,287

1,239,944

67,343

100

104

- 4

Net additions to capital from income........................................................................ 1,376,953 786,853 277,390 312,710 1,378,642 -1,689

N u m b e r o f b a n kin g em ployees (exclusive of building em ployees), Decem ber 31: 

Active o ffic e rs ................................................................................. 137,803

606,120

72,968

362,034

25,205

129,317

39,630

114,769

137,523

605,410

280

710O ther e m p lo y e e s ... ...........................................................................................................

Memoranda

Recoveries c re d ite d to valuation reserves (n o t included in recoveries above):

On s e c u ritie s .................................................................................................................................... 3,300

143,859

60,282

545,647

2,282

93,446

45,453

326,400

518

22,222

9,222

112,220

500

28,191

5,607

107,027

3,302

143,839

60,269

545,471

- 2

20

13

176

On lo a n s .................... . .....................................................................................

Losses charged to valuation reserves (n o t included in losses above):

On s e c u ritie s ....................................................................................................................................

On lo a n s .............................................................................................................................................

Occupancy expense of bank premises

Occupancy expense of bank premises, net—total...................................................

R ental and o th e r in c o m e ................................................................................................................

Occupancy expense of bank premises, gross—total................................................

S alaries— b u ild in g d e p a rtm e n t o ffic e rs ................................................................................

Salaries and wages— b u ild in g d e p a rtm e n t e m p lo ye e s ..................................................

B u ild ing d e p a rtm e n t personnel b e n e fits ............................................................................

R ecurring d e p re c ia tio n ................................................................................................................

M aintenance and re p a irs ...........................................................................................................

Insurance and u tilitie s .................................................................................................................

Rents p a id .........................................................................................................................................

802,060

178,384

980,444

2,968

97,881

12,528

177,848

111,752

167,268

268,767

141,432

449,563

116,421

565,984

1,884

58,787

7,719

107,379

67,358

94,915

143,049

84,893

204,044

45,755

249,799

807

25,336

3,726

41,394

24,062

40,515

79,919

34,040

148,453

16,208

164,661

277

13,758

1,083

29,075

20,332

31,838

45,799

22,499

800,858

178,345

979,203

2,968

97,816

12,509

177,666

111,599

167,029

268,274

141,342

1,202

39

1,241

65

19

182

153

239

493

T axe s.................................................. ................................................................................................ 90

N u m be r o f b u ild in g em ployees, D ecem ber 31:

O ffic e rs .................. ............................ ......................................................... 403

33,035

179

17,691

64

6,872

160

8,472

403

O ther e m p lo y e e s ... .............................. ............................................................................... 32,991 44

N u m b e r o f banks, D ecem ber 3 1 ................................................................................................ 13,541 4,799 1,350 7,392 13,440 101

Back figures, 1934-1965: See the Annual Report for 1965, pp. 156-157, and earlier reports.

INCOME OF INSURED BANKS 163

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 115. INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1966 IN THE UNITED STATES (STATES AND

OTHER AREAS)

BANKS GROUPED ACCORDING TO AM O UNT OF DEPOSITS 

(Am ounts in thousands of dollars)

Banks w ith dep osits of— 2

Incom e item All

b a n k s 1 Less

than

$1,000,000

$1,000,000

to

$2,000,000

$2,000,000

to

$5,000,000

$5,000,000

to

$10,000,000

$10,000,000

to

$25,000,000

$25,000,000

to

$50,000,000

$50,000,000

to

$100,000,000

$100,000,000

to

$500,000,000

$500,000,000

or

more

Current operating revenue—total 19,497,005 18,979 138,480 776,566 1,268,694 2,108,624 1,437,916 1,347,421 3,610,193 8,790,132

In te re s t on U. S. G overnm e nt o b lig a tio n s ........ 2,315,758 4,949 36,054 178,745 249,082 358,024 223,047 188,453 413,828 663,576

In te re s t and d ivid e n d s on o th e r s e c u ritie s .... 1,530,927 809 7,332 48,633 99,812 179,116 125,899 116,588 283,721 669,017

In te re s t and d isco u n t on lo a n s .............................. 13,035,499 11,008 82,149 472,033 787,108 1,331,381 913,761 868,229 2,412,111 6,157,719

Service charges and fees on lo a n s ...................... 243,406 126 526 4,992 10,027 21,862 17,547 21,229 51,173 115,924

Service charges on d e p o sit a c c o u n ts ................. 914,598 871 6,194 41,469 77,600 139,204 90,454 74,498 179,237 305,071

O ther charges, com m ission s, fees, e tc .............. 353,763 745 4,935 23,342 28,938 39,051 23,960 26,563 62,101 144,128

T ru s t d e p a rtm e n t........................................................ 756,117 209 97 736 4,884 18,607 27,282 35,025 163,553 505,724

O ther c u rre n t op e ra tin g re v e n u e .......................... 346,937 262 1,193 6,616 11,243 21,379 15,966 16,836 44,469 228,973

Current operating expenses—total..................... 14,549,565 14,171 102,660 584,492 957,157 1,610,397 1,098,923 1,036,100 2,684,512 6,461,153

S alaries—o ffic e rs ......................................................... 1,524,366 4,987 29,350 121,947 152,985 209,033 128,755 113,509 266,022 497,778

Salaries and wages— o th e r e m p lo y e e s ............... 2,567,552 1,529 11,579 77,519 144,038 262,425 191,386 180,400 522,891 1,175,785

O fficer and em ployee b e n e fits .............................. 598,445 421 2,980 17,795 31,841 56,529 40,805 41,479 119,000 287,595

Fees paid to d ire cto rs and c o m m itte e s ............. 83,721 465 2,591 12,471 15,636 18,662 9,180 6,157 10,293 8,266

In te re s t on tim e and savings d e p o s its ............... 6,256,578 3,323 32,492 216,151 381,249 664,454 454,705 434,269 1,069,390 3,000,545

In te re s t on borrow ed m o n e y .................................. 301,723 12 194 920 1,783 4,418 5,190 7,856 40,430 240,920

O ccupancy expense o f ban k p re m ise s— n e t . .. 800,858 787 4,907 30,063 52,230 89,690 62,170 61,361 156,186 343,464

F u rn itu re and e q u ip m e n t......................................... 458,228 373 2,759 17,623 29,959 53,177 37,300 38,497 106,958 171,582

O ther c u rre n t op e ra tin g e x p e n s e s ....................... 1,958,094 2,274 15,808 90,003 147,436 252,009 169,432 152,572 393,342 735,218

Net current operating earnings........................... 4,947,440 4,808 35,820 192,074 311,537 498,227 338,993 311,321 925,681 2,328,979

Recoveries, transfers from valuation reserves,

and profits—total............................................

On securities:

341,582 413 2,818 12,035 20,239 29,186 20,835 23,245 62,858 169,953

P rofits on securitie s sold or re d e e m e d .......... 62,392 33 370 2,296 5,130 7,815 4,280 3,688 12,749 26,031

R ecoveries................................................................... 5,074 9 72 218 532 1,826 535 363 412 1,107

T ra n sfe rs fro m valuation re s e rv e s ..................

On loans:

100,930 3 108 242 740 1,965 2,964 5,960 14,054 74,894

R e coveries................................................................... 15,570 291 1,468 4,226 3,800 2,647 624 486 1,294 734

T ra n sfe rs fro m valuation re s e rv e s ................... 55,760 3 237 2,037 3,297 5,981 3,669 4,401 5,866 30,269

All o th e r ............................................................................ 101,856 74 563 3,016 6,740 8,952 8,763 8,347 28,483 36,918

Losses, charge-offs, and transfers to valuation

reserves—total................................................

On securitie s:

1,573,211 1,004 8,856 55,017 90,214 148,540 98,833 98,463 244,703 827,581

Losses on se cu ritie s s o ld ..................................... 454,768 46 528 6,330 13,793 27,448 24,930 24,797 66,777 290,119

C harge-offs p rio r to s a le ....................................... 10,199 21 107 1,253 1,971 2,527 993 1,594 464 1,269

T ra n sfe rs to valuation re s e rv e s ........................

On loans:

78,899 7 167 939 2,045 4,069 3,432 4,276 14,985 48,979

Losses and c h a rg e -o ffs ......................................... 31,237 490 3,284 10,373 8,047 5,427 1,270 884 1,057 405

T ransfers to valuation re s e rv e s ........................ 775,352 281 3,582 28,963 53,592 91,491 57,492 57,584 136,100 346,267

All o th e r........................................................................... 222,756 159 1,188 7,159 10,766 17,578 10,716 9,328 25,320 140,542

Net income before related taxes......................... 3,715,811 4,217 29,782 149,092 241,562 378,873 260,995 236,103 743,836 1,671,351

164 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Taxes on net income—total.................................. 1,029,882 778 5,638 31,445 58,418 99,081 71,800 63,891 217,735 481,096

F e d e ra l............................................................................. 911,576 712 5,101 28,598 54,099 92,855 67,145 59,416 203,467 400,183

S ta te .................................................................................. 118,306 66 537 2,847 4,319 6,226 4,655 4,475 14,268 80,913

Net income after related taxes........................... 2,685,929 3,439 24,144 117,647 183,144 279,792 189,195 172,212 526,101 1,190,255

Dividends and interest on capital—total............ 1,307,287 998 7,628 35,557 58,470 96,899 74,081 73,411 248,142 712,101

Cash d ivid e n d s declared on com m o n s to c k ... 1,239,944 998 7,628 35,513 58,178 95,930 72,444 71,093 236,883 661,277

D ividends declared on p re fe rre d stock and

in te re st on capita l notes and d e b e n tu re s ___ 67,343 44 292 969 1,637 2,318 11,259 50,824

Net additions to capital from income................. 1,378,642 2,441 16,516 82,090 124,674 182,893 115,114 98,801 277,959 478,154

N u m be r o f ban king em ployees (exclusive of

building em ployees), D ecem ber 31:

A ctive o ffic e rs ............................................................... 137,523 975 4,342 14,785 16,414 19,951 11,278 9,648 21,407 38,723

O ther e m p lo ye e s.......................................................... 605,410 680 4,084 23,266 56,719 70,673 49,985 45,986 123,128 230,889

Memoranda

Recoveries c redited to valuation reserves (n o t

included in recoveries above):

On s e c u ritie s .................................................................. 3,302 62 42 398 859 414 588 939

On lo a n s .......................................................................... 143,839 74 786 6,729 12,641 22,456 13,692 15,990 24,586 46,885

Losses charged to valuation reserves (n o t in ­

clu ded in losses above):

On s e c u ritie s ................................................................. 60,269 31 267 540 2,185 3,426 3 345 13 468 37 007

On lo a n s .......................................................................... 545,471 224 2,405 20,307 38,536 72,402 44,930 44^449 95,996 226 i 222

Occupancy expense of bank premises

Occupancy expense of bank premises, n e ttotal .................................................................. 800,858 787 4,907 30,063 52,230 89,690 62,170 61,361 156,186 343,464

R ental and o th e r in c o m e .............................................. 178,345 45 329 2,216 4,148 9,567 11,064 14,810 49,522 86,644

Occupancy expense of bank premises, gross—

total.................................................................. 979,203 832 5,236 32,279 56,378 99,257 73,234 76,171 205,708 430,108

Salaries— b u ild in g d e p a rtm e n t o ffic e rs ............. 2,968 2 8 34 26 71 89 171 733 1,834

S alaries and w ages— b u ild in g d e p a rtm e n t

e m p lo ye e s................................................................... 97,816 43 385 2,959 5,632 10,066 8,103 7,826 23,449 39,353

B u ild in g d e p a rtm e n t personn el b e n e fits .......... 12,509 2 9 141 338 819 839 866 3,163 6,332

R e currin g d e p re c ia tio n ............................................. 177,666 105 932 6,702 12,314 20,579 14,247 13,116 36,062 73,609

M aintenance and re p a irs ......................................... 111,599 125 746 3,913 6,801 11,846 9,412 9,800 23,937 45,019

Insurance and u tilitie s .............................................. 167,029 348 1,802 8,559 12,267 19,068 12,268 11,390 30,951 70,376

R ents p a id ....................................................................... 268,274 70 497 4,643 10,009 20,620 16,924 22,235 58,802 134,474

T a xe s................................................................................. 141,342 137 857 5,328 8,991 16,188 11,352 10,767 28,611 59,111

N u m b e r o f b u ild in g em ployees, D ecem ber 31:

O ffic e rs ............................................................................. 403 79 35 26 31 18 23 67 124

O ther e m p lo y e e s .......................................................... 32.991 111 1,332 3,170 3,381 3,926 2,758 2,651 6,875 8,787

N u m b e r o f banks, D ecem b er 3 1 .............................. 13,440 433 1,624 4,154 3,265 2,447 751 351 320 95

1 This group of banks is the same as the group shown in Table 114 under the heading “Operating throughout the year”.

2 For asset and liability data, see Table 108, p. 151.

Back figures, 1941-1965: See the Annual Report for 1965, pp. 160-161, and earlier reports.

INCOME OF INSURED BANKS 165

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T a b l e 1 1 6 . RATIOS OF INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1966 IN THE UNITED STATES

(STATES AND OTHER AREAS) i

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS

Incom e item

Banks w ith dep osits of— 2

Less

than

-$1,000,000

$1,000,000

to

$2,000,000

$2,000,000

to

$5,000,000

$5,000,000

to

$10,000,000

$10,000,000

to

$25,000,000

$25,000,000

to

$50,000,000

$50,000,000

to

$100,000,000

$100,000,000

to

$500,000,000

$500,000,000

or

more

Amounts per $100 of current operating revenue

Current operating revenue—to ta l............................................. $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00

In te re s t on U.S. G o ve rn m e n t o b lig a tio n s ................................... 26.08 26.04 23.02 19.63 16.98 15.51 13.99 11.46 7.55

In te re s t and d ivid e n d s on o th e r s e c u ritie s ................................ 4.26 5.30 6.26 7.87 8.49 8.75 8.65 7.86 7.61

Incom e on lo a n s ..................................................................................... 58.66 59.70 61.43 62.83 64.18 64.77 66.01 68.23 71.37

S ervice charges on d e p o s it a c c o u n ts ........................................... 4.59 4.47 5.34 6.12 6.60 6.29 5.53 4.97 3.47

O ther service charges, com m ission s, fees, e tc ........................ 3.93 3.56 3.00 2.28 1.85 1.67 1.97 1.72 1.64

O ther c u rre n t o p e ra tin g re v e n u e ................................................... 2.48 .93 .95 1.27 1.90 3.01 3.85 5.76 8.36

Current operating expenses—total........................................... 74.67 74.13 75.27 75.44 76.37 76.42 76.90 74.36 73.50

Salaries, wages, and fe e s ................................................................... 36.78 31.43 27.29 24.64 23.25 22.90 22.27 22.14 19.13

O fficer and em ployee b e n e fits ........................................................ 2.22 2.15 2.29 2.51 2.68 2.84 3.08 3.30 3.27

In te re s t on tim e and savings d e p o s its ........................................ 17.51 23.46 27.84 30.05 31.51 31.62 32.23 29.62 34.14

O ccupancy expense o f bank p re m ise s— n e t ............................ 4.15 3.54 3.87 4.12 4.25 4.32 4.55 4.33 3.91

F u rn itu re and e q u ip m e n t................................................................... 1.97 1.99 2.27 2.36 2.52 2.60 2.86 2.96 1.95

O ther c u rre n t o p e ra tin g e x p e n s e s ................................................. 12.04 11.56 11.71 11.76 12.16 12.14 11.91 12.01 11.10

Net current operating earnings................................................ 25.33 25.87 24.73 24.56 23.63 23.58 23.10 25.64 26.50

Amounts per $100 of total assets2

C u rre n t o p e ra tin g re ve n u e —to ta l....................................................... 5.00 4.96 4.94 4.96 5.04 5.04 5.03 4.93 4.69

C u rre n t o p e ra tin g expenses— t o ta l.................................................... 3.73 3.68 3.72 3.74 3.85 3.85 3.87 3.67 3.45

N et c u rre n t o p e ra tin g e a rn in g s ........................................................... 1.27 1.28 1.22 1.22 1.19 1.19 1.16 1.26 1.24

R ecoveries, tra n s fe rs fro m va lu a tio n reserves, and

p ro fits —to ta l............................................................................................. .10 .10 .08 .08 .07 .07 .09 .09 .09

Losses, ch a rg e -o ffs, and tra n s fe rs to valu a tio n

reserves— to ta l........................................................................................ .26 .31 .35 .35 .35 .35 .37 .33 .44

N et in com e before related ta x e s ........................................................ 1.11 1.07 .95 .95 .91 .91 .88 1.02 .89

N et incom e a fte r related ta x e s ............................................................ .91 .86 .75 .72 .67 .66 .64 .72 .64

Memoranda

Recoveries c re d ite d to v aluation reserves (n o t in clude d

in recoveries above):

On s ecuritie s ..................................................................................... ( 3) (3) ( 3) ( 3) ( 3) ( 3) ( 3)

On lo a n s ..................................................................................................... .02 .03 .04 .05 .05 .05 .06 .03 .03

Losses charged to valuation reserves (n o t in clude d

in losses above):

On s ecuritie s ..................................................................................... ( 3) ( 3) (3) .01 .01 .01 .02 .02

On lo a n s ..................................................................................................... .06 .09 .13 .15 .17 .16 .17 .13 .12

166 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Amounts per $100 of total capital accounts2

N et c u rre n t o p e ra tin g e a rn in g s ............................................

Recoveries, tra n s fe rs fro m va lu a tio n reserves, and

p ro fits —to ta l..............................................................................

Losses, charge-offs, and tra n s fe rs to valuation

reserves—to ta l..........................................................................

N et incom e before related ta x e s .........................................

Taxes on net in c o m e .................................................................

N et incom e a fte r ta x e s .............................................................

Cash dividen ds d e c la re d .........................................................

N et a d d itio n s to capital fro m in c o m e .................................

Memoranda

R ecoveries cre d ite d to reserve accou nts (n o t included 

in recoveries above):

On s e c u ritie s ...................................................................................

On lo a n s ............................................................................................

Losses charged to reserve accou nts (n o t included 

in losses above):

On s e c u ritie s ...................................................................................

On lo a n s ............................................................................................

Special ratios2

Incom e on loans per $1 0 0 of lo a n s ..........................................

Incom e on U.S. G overnm e nt o bliga tions per $100 of

U.S. G overnm e nt o b lig a tio n s ...................................................

Incom e on o th e r securitie s per $10 0 o f o th e r securities .

Service charges per $ 10 0 o f dem and d e p o s its ...................

In te re s t paid per $ 1 0 0 o f tim e and savings d e p o s its .......

Occupancy expense of bank premises per $100

of current operating revenue

Occupancy expense of bank premises, net—total...........

Rental and o th e r in c o m e ...............................................................

Occupancy expense of bank premises, gross—total ......

S alaries and wages— b u ild in g d e p a rtm e n t officers

and e m p lo y e e s ...........................................................................

B u ild in g d e p a rtm e n t personn el b e n e fits ...........................

R e currin g d e p re c ia tio n ...............................................................

M aintena nce and re p a irs ...........................................................

Insurance and u tilitie s ................................................................

Rents p a id ........................................................................................

T a xe s..................................................................................................

10.02

2.09 

8.79 

1.62 

7.17 

2.0

5.09

.15

.47

7.01

4.26

2.51

.38

3.21

4.15

.23

4.3!

.24

.01

.55

.66

1.83

.37

.72

11.6

.92

2.89

9.71

1.84

7.87

2.48

5.39

.26

.01

.78

6 .66

4.31

2.67

.42

3.25

3.54

.24

3.78

.28

.01

.67

.54

1.30

.36

.62

12.89

3.69

10.00

2.11

7.89

2.38

5.51

(3)

.02

1.36

6.50

4.33

2.61

.55

3.29

3.87

.29

4.16

.39

.02

.86

.50

1.10

.60

.69

14.44

.93

4.18

11.19

2.70 

8.49

2.71 

5.78

(3)

.59

.03

1.79

6.44

4.35

2.73

3.34

4.12

.32

4.44

.44

.03

.97

.53

.97

.79

.71

15.33

.90

4.57

11.66

3.05

8.61

2.98

5.63

.01

.69

.07

2.23

6.38

4.36

2.90

.75

3.43

4.25

.45

4.70

.48

.04

.97

.56

.90

.98

.77

15.86

.97

4.62 

12.21 

3.36 

S. 85 

3.47 

5.38

.04

.64

.16

2.10

6.26

4.37

3.02

.71

3.52

4.32

.77

5.09

.57

.06

.99

.65

.85

1.18

.79

15.74

1.18

4.98

11.94

3.23

8.71

3.71 

5.00

.02

.81

.17

2.25

6.26

4.28

3.07

.62

3.60

4.55

1.10

5.65

.59

.06

.97

.73

.85

1.65

16.56

1.12

4.37

13.31

3.90

9.41

4.44

4.97

.01

.44

.24

1.72

6.16

4.22

3.11

.49

3.69

4.33

1.37

5.70

.67

.09

1.00

.66

.86

1.63

.79

15.88

1.15

5.64

11.39

3.28

8.11

4.85

3.26

.01

.32

.25

1.54

5.90

3.80

3.47

.34

4.41

3.91

.98

4.89

.47

.07

.51

1.53

.67

N u m b e r o f banks, D ecem ber 3 1 . 433 1,624 4,154 3,265 2,447 751 351 320

1 This group of banks is the same as the group shown in Table 114 under the heading “ Operating throughout the year."

2 For asset and liability data, see Table 108, p. 151.

3 Less than .005.

Back figures, 1941-1965: See the Annual Report for 1965, pp. 162-163, and earlier reports.

INCOME OF INSURED BANKS 167

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T a b l e 1 1 7 . INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), BY STATE, 1966

(Am ounts in thousands of dollars)

Incom e item

Total

U nited

States

O ther areas 50 States 

and 

D.C.

Alabam a Alaska Arizona A rkansas C alifornia Colorado C o nnecticu t Puerto

Rico

Virgin

Islands

Current operating revenue—to tal.................... 19,508,414 57,042 2,040 19,449,332 191,904 23,424 144,772 110,775 2,303,949 184,814 227,010

In te re s t on U. S. G overnm e nt o b lig a tio n s ... 2,317,794 3,964 293 2,313,537 31,760 2,625 10,571 15,560 176,485 21,536 18,349

In te re s t and dividen ds on o th e r s e c u ritie s .. 1,531,517 2,306 27 1,529,184 16,355 1,355 9,367 10,537 161,522 9,517 16,013

In te re s t and disco u n t on lo a n s ........................ 13,042,757 40,939 1,417 13,000,401 121,475 15,102 102,303 73,374 1,614,259 121,334 151,663

Service charges and fees on lo a n s ................ 243,643 4,283 156 239,204 1,409 1,472 3,082 320 53,177 2,689 2,220

Service charges on d e p o sit a c c o u n ts ........... 915,049 2,628 29 912,392 11,665 1,923 10,503 6,162 146,305 14,596 13,413

O ther charges, co m m ission s, fees, e tc ........ 354,036 2,179 75 351,782 3,851 725 3,601 2,710 39,645 3,445 4,196

756,130 28 756,102 3,835 116 3,333 1,138 63,483 7,871 18,828

O ther c u rre n t o p e ra tin g re v e n u e .................... 347,488 715 43 346,730 1,554 106 2,012 974 49,073 3,826 2,328

Current operating expenses—total 14,561,852 47,103 1,537 14,513,212 134,738 18,632 117,477 81,170 1,841,348 143,417 166,683

S alaries—o ffic e rs .................................................... 1,526,300 5,142 172 1,520,986 18,572 2,796 12,985 12,734 179,079 18,181 20,360

Salaries and w ages—o th e r e m p lo y e e s ......... 2,569,442 10,415 363 2,558,664 25,552 4,320 23,658 13,329 325,452 25,459 37,010

O fficer and em ployee b e n e fits ......................... 598,768 1,881 56 596,831 5,565 664 4,530 2,941 67,592 5,422 9,220

Fees paid to d ire cto rs and c o m m itte e s ........ 83,791 191 9 83,591 1,157 66 196 1,200 1,655 1,207 1,007

In te re s t on tim e and savings d e p o s its ......... 6,259,472 16,415 604 6,242,453 50,079 5,871 46,386 29,269 892,459 53,374 53,716

In te re s t on borrow ed m o n e y ............................ 301,768 353 22 301,393 516 90 410 490 31,924 1,147 839

O ccupancy expense of ban k p re m ise s— net. 802,060 3,083 42 798,935 6,552 1,301 7,933 4,675 102,962 9,581 11,624

F u rn itu re and e q u ip m e n t................................... 458,695 1,403 40 457,252 5,310 912 4,924 3,093 55,027 6,458 7,283

O ther c u rre n t o p e ra tin g e x p e n s e s ................. 1,961,556 8,220 229 1,953,107 21,435 2,612 16,455 13,439 185,198 22,588 25,624

Net current operating earnings 4,946,562 9,939 503 4,936,120 57,166 4,792 27,295 29,605 462,601 41,397 60,327

Recoveries, transfers from valuation reserves, and profits—to tal.......................... 341,711 1,207 8 340,496 1,859 523 716 1,542 22,716 3,064 3,054

On securities:

P rofits on securitie s sold or re d e e m e d . .. 62,464 717 61,747 738 29 49 510 10,023 458 459

R ecoveries • • • 5,077 5,077 10 61 16 17 39 26

T ransfers fro m v aluation reserves 100,950 100,950 172 168 60 1,868 1,286 399

On loans:

R ecoveries 15 585 123 15,462 231 379 1,187 275 15

T ransfers fro m valuation reserves .. 55,762 164 55,598 143 11 26 246 968 112 480

All o th e r...................................................................... 101,873 203 8 101,662 565 483 412 331 8,653 894 1,675

Losses, charge-offs, and transfers to valuation reserves—total.................................. 1,574,027 2,994 53 1,570,980 15,813 2,697 12,935 7,799 157,973 13,374 14,983

On securities:

Losses on securities sold ........ 454,911 396 454,515 4,055 919 2,734 883 30,670 3,553 2,881

Pharcro.riffc r^rinr to 1P 10,198 10,198 242 116 157 198 8

T ra n sfe rs to valuation reserves 78,932 78,932 173 463 24 15,197 98 558

On loans:

31,251 542 30,709 336 160 646 2,177 986 54

T ra n sfe rs to valuation re s e rv e s ................... 775,792 1,740 48 774,004 9,335 1,464 8,954 4,875 89,065 7,226 8,042

All o th e r...................................................................... 222,943 316 5 222,622 1,672 154 784 1,255 20,707 1,313 3,440

Net income before related taxes.................... 3,714,246 8,152 458 3,705,636 43,212 2,618 15,076 23,348 327,344 31,087 48,398

168 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Taxes on net income—to ta l.............................

F ed era l........................................................................

1,029,906

911,585

118,321

-6

67

257

257

1,029,655

911,261

118,394

13,858

11,880

1,978

341

337

4

3,593

3,218

375

5.385

5.385

101,026

68,111

32,915

9,015

7,349

1,666

16,177

11,705

4,472 State ............................................................................. -73

Net income after related taxes....................... 2,684,340 8,158 201 2,675,981 29,354 2,277 11,483 17,963 226,318 22,072 32,221

Dividends and interest on capital—to ta l........ 1,307,387 3,568

2,953

615

1,303,819

1,237,095

66,724

11,496

11,494

2

566 7,878 5,376

5,327

49

139,503

129,505

9,998

10,329

10,054

275

16,622

16,029

593

Cash d ivid e n d s declared on com m o n stock. 1,240,048

67,339

566 7,415

463

D ividends declared on p re fe rre d stock and 

in te re s t on capita l notes and d e b e n tu re s.

Net additions to capital from income............ 1,376,953 4,590 201 1,372,162 17,858 1,711 3,605 12,587 86,815 11,743 15,599

N u m b e r of ban kin g em ployees (exclusive of 

b u ild in g em ployees), D e cem b er 31: 

A ctive o ffic e rs .......................................................... 137,803

606,120

603 13 137,187

603,259

1,853

7,108

176 1,172

5,552

1,421

3,840

16,274

67,544

1,576

6,076

1,592

O ther em p lo ye e s.................................................... 2,769 92 802 8,195

Memoranda

Recoveries credited to valuation reserves 

(n o t included in recoveries above):

On s e c u ritie s ............................................................ 3,300

143,859

60,282

545,647

3,300

143,280

60,282

544,471

6 1 176

17,473

14,744

80,713

12

1,411

1,362

5,146

On lo a n s ..................................................................... 535 44 2,568

178

370 1,733 1,057

170

1,768

Losses charged to valuation reserves (n o t 

in clude d in losses above):

On s e c u ritie s .............................................................

On lo a n s ..................................................................... 1,124 52 7,910 2,065 9,031 3,049 6,553

Occupancy expense of

bank premises

Occupancy expense of bank premises, n e ttotal .............................................................. 802,060

178,384

980,444

2,968

3,083

536

42 798,935

177,842

976,777

2,953

97,687

12,501

177,453

111,245

166,786

267,261

140,891

6,552

816

1,301

207

7,933

995

4,675

612

5,287

6

102,962

11,556

114,518

368

4,203

664

14,280

17.628

15.629 

47,858 

13,888

9,581 11,624

1,542

13,166

25

1,151

155

2,240

1,365

2,619

3,748

1,863

Rental and o th e r in c o m e ........................................ 6 3*219

12,800

38

1,110

121

1,608

1,334

1,774

5,418

1,397

Occupancy expense of bank premises,

gross—total........................ ...................... 3,619

15

48 7,368

23

1,508 8,928

S alaries— b u ild in g d e p a rtm e n t o ffic e rs ........ 82

Salaries and wages— b u ild in g d e p a rtm e n t 

e m p lo y e e s ............................................................. 97,881

12,528

177,848

111,752

167,268

268,767

141,432

194 774 44 533 630

B u ild ing d e p a rtm e n t personnel b e n e fits ... 72

R ecurring d e p re c ia tio n ........................................

27 66 3 83

389 6 1,354

785

245 1,649

909

1,522

501

1,023

770

M aintenance and re p a irs .................................... 504 3 379

Insurance and u tilitie s ......................................... 477 5 1,435

2,597

334

377 1,874

3,019

779

R ents p a id ................................................................. 1,474

539

32 281

T a xe s..................................................................... 2 179 763

N u m be r of build in g em ployees, D ecem ber 

31:

O ffic e rs ....................................................................... 403 4 399 3 5 1 26

928

5 3

O ther em p lo ye e s..................................................... 33,035 65 32,970 349 10 140 310 326 320

N u m be r of banks, D ecem ber 3 1 ........................ 13,541 8 1 13,532 267 10 17 243 187 215 63

N ote: For average asset and liability data by State, see Table 109, pp. 152-153.

Back figures, 1946-1965: See the Annual Report for 1965, pp. 164-173, and earlier reports.

INCOME OF INSURED BANKS 169

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 117. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

BY STATE, 1966— CONTINUED

(Am ounts in thousands of dollars)

Georgia Hawaii Idaho Illinois Indiana Iowa Kansas K entucky

312,592 69,954 56,676 1,402,555 399,659 243,181 188,164 182,360

34,740 5,842 6,461 216,551 79,290 47,186 36,279 34,309

18,615 4,468 3,268 123,238 25,173 18,646 15,080 13,434

203,758 49,848 38,936 887,493 250,300 153,624 117,231 115,374

6,942 2,892 784 11,114 3,640 923 890 1,792

21,665 2,466 4,885 42,613 16,735 12,157 11,634 6,970

13,340 2,514 1,322 16,429 9,411 5,012 3,366 2,067

10,014 866 387 67,494 10,419 3,408 1,872 6,336

3,518 1,058 633 37,623 4,691 2,225 1,812 2,078

232,796 52,912 41,752 1,028,692 294,266 179,906 129,802 126,795

29,085 5,140 5,774 99,931 36,676 33,465 25,204 18,871

45,104 10,026 7,865 159,201 52,091 26,100 20,045 22,630

11,168 3,032 1,877 41,899 11,379 6,330 4,704 5,168

2,287 257 190 6,182 2,768 1,495 1,705 1,583

76,171 20,230 15,623 482,295 112,023 69,641 46,452 45,267

4,688 697 228 33,384 4,759 831 694 717

14,823 3,040 2,070 46,720 16,225 9,052 6,651 6,883

8,778 3,287 1,935 28,889 10,493 6,039 4,477 4,451

40,692 7,203 6,190 130,191 47,852 26,953 19,870 21,225

79,796 17,042 14,924 373,863 105,393 63,275 58,362 55,565

5,093 919 157 39,749 6,688 3,417 2,572 2,912

2,259 371 37 3,347 1,522 870 584 415

7 3 660 48 147 27 35

158 31 17,267 2,085 8 179 409

223 3 73 745 324 384 889 377

660 40 5,765 854 459 233 892

1,786 505 13 11,965 1,855 1,549 660 784

22,003 4,279 3,691 127,956 33,748 15,781 14,083 13,584

2,748 926 1,502 54,749 6,869 3,396 2,258 1,580

79 2 985 356 222 376 301

1,164 21 11,878 2,588 156 114 967

321 230 1,315 687 544 1,580 897

14,296 2,873 1,813 45,636 19,284 8,691 7,777 7,475

3,395 480 123 13,393 3,964 2,772 1,978 2,364

62,886 13,682 11,390 285,656 78,333 50,911 46,851 44,893

Incom e item

C u rren t operating revenu e— to ta l.......................

In te re s t on U. S. G overnm e nt o b lig a tio n s .. 

In te re s t and d ivid e n d s on o th e r se cu ritie s.

In te re s t and d isco u n t on lo a n s ......................

Service charges and fees on lo a n s ..............

Service charges on d e p o sit a c c o u n ts .........

O ther charges, com m ission s, fees, e tc .. . .

T ru s t d e p a rtm e n t.................................................

O ther c u rre n t o p e ra tin g re v e n u e ..................

C u rren t operating expenses— total

Salaries—o ffic e rs ....................................................

Salaries and wages— o th e r e m p lo y e e s .........

O ffice r and em ployee b e n e fits .........................

Fees paid to d ire cto rs and c o m m itte e s ........

In te re s t on tim e and savings d e p o s its .........

In te re s t on borrow ed m o n e y .............................

O ccupancy expense of bank p rem ises net.

F urn itu re and e q u ip m e n t...................................

O ther c u rre n t o p e ra tin g e x p e n s e s .................

N et current operating earnings

Recoveries, tran sfers from valuation re

serves, and profits—to ta l............................

On securitie s:

P rofits on se cu ritie s sold or red e e m e d .

R e coveries.........................................................

T ra n sfe rs fro m valuation re s e rv e s .........

On loans:

R e coveries.........................................................

T ra n sfe rs fro m valuation re s e rv e s .........

All o th e r..................................................................

Losses, charge-offs, and tran sfers to va lu ­

ation reserves—to ta l........................................

On securitie s:

Losses on securitie s s o ld ..............................

C harge-offs p rio r to s a le ................................

T ra n sfe rs to valuation re s e rv e s .................

On loans:

Losses and c h a rg e -o ffs ..................................

T ra n sfe rs to valuation re s e rv e s .................

All o th e r....................................................................

N et incom e before related taxes.

Delaw are

61,405

11,174

3,159

33,270

915

1,496

576

9,462

1,353

36,623

5,529

8,944

1,963

271

10,627

113

2,140

1,745

5,291

24,782

1,281

281

59

20

682

239

4,370

1.504 

1

208

24

2.504 

129

21,693

D istrict

of

Colum bia

127,166

22,368

4,075

82,821

1,915

6,819

1,123

7,067

978

85,903

9,374

16,895

2,628

596

32,984

1,414

5,473

3,179

13,360

41,263

1,100

258

1

14

3

824

6,092

369

28

37

4,862

796

36,271

Florida

448,515

77,840

39,411

260,793

7,695

32,846

9,306

13,277

7,347

346,410

41,396

66,315

12,178

3,104

128,418

4,129

18,888

16,174

55,808

102,105

781

42

116

340

752

2,605

32,079

4,593

137

212

2,322

21,368

3,447

74,662

170 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Taxes on net income—to ta l.............................

F e d e ra l........................................................................

S ta te .............................................................................

8,297

7,732

565

15.444

15.444

17.745

17.745

18,026

18,026

4,601

3,856

745

4,318

3,523

795

80.807

80.807

22.741

22.741

12.890

12.890

13,077

11,929

1,148

13.853

13.853

Net income after related taxes....................... 13,396 20,827 56,917 44,860 9,081 7,072 204,849 55,592 38,021 33,774 31,040

Dividends and interest on capital—to ta l........

Cash d ivid e n d s declared on com m o n stock. 

D ividends declared on p re fe rre d stock and 

in te re s t on capita l notes and deb e n tu re s.

7.711

7.711

10,405

9,816

589

19,867

18,883

984

18,346

16,823

1,523

6,174

5,454

720

3,958

3,805

153

79,134

78,808

326

19,296

18,590

706

13,081

13,067

14

11,037

10,963

74

11,490

11,343

147

Net additions to capital from income............ 5,685 10,422 37,050 26,514 2,907 3,114 125,715 36,296 24,940 22,737 19,550

N u m b e r o f ba n kin g em plo yees (exclusive of 

b u ild in g em ployees), D e cem b er 31:

Active o ffic e rs ..........................................................

O ther e m p lo ye e s ....................................................

428

2,185

675

3,616

3,933

33,549

2,747

10,900

786

3,272

534

2,039

7,918

35,214

3,383

13,262

3,195

7,175

2,538

5,439

2,193

6,544

Memoranda

R ecoveries cre d ite d to valu a tio n reserves 

(n o t in clude d in recoveries above):

On s e c u ritie s ............................................................ 43 19 12 68 463

3,782

779

8 2

1,939

149

6,959

78

1,175

914

3,964

On lo a n s .....................................................................

Losses charged to valuation reserves (not 

in clude d in losses above):

On s e c u ritie s .............................................................

95

85

562 4,038

370

2,285

284

374

12

190 9,066

2,824

32,026

1,580

36

On lo a n s ..................................................................... 387 2,162 20,695 6,987 1,721 881 13,090 3,971

Occupancy expense of

bank premises

Occupancy expense of bank premises, n e ttotal..............................................................

R ental and o th e r in c o m e ........................................

Occupancy expense of bank premises,

gross—total.................................................

Salaries— b u ild in g d e p a rtm e n t o ffic e rs ........

2,140

270

2,410

5,473

1,178

6,651

8

18,888

5,797

24,685

79

14,823

2,427

17,250

33

3,040

977

4,017

54

2,070

366

2,436

1

46,720

8,692

55,412

144

16,225

3,543

19,768

26

2,867

223

3,893

2,618

3,527

4,141

2,473

9,052

1,339

10,391

17

1,304

98

2,005

1,294

1,982

2,268

1,423

6,651

1,417

8,068

29

1,010

74

1,645

998

1,636

1,616

1,060

6,883

1,368

8,251

4

Salaries and wages— b u ild in g d e p a rtm e n t

e m p lo y e e s .............................................................

B u ild ing d e p a rtm e n t personnel b e n e fits. . .

R ecurring d e p re c ia tio n ........................................

M aintenance and re p a irs ....................................

Insurance and u tilitie s .........................................

Rents p a id .................................................................

T a xe s...........................................................................

206

36

431

209

403

956

169

1,164

106

914

821

747

2,184

707

2,220

236

4,532

2,998

4,903

5,172

4,545

1,209

131

2,513

1,899

2,673

5,478

3,314

208

63

569

427

855

1,487

354

226

13

573

199

487

603

334

8,383

893

9,509

6,296

8,170

13,955

8,062

1,194

99

1,615

1,152

1,560

1,625

1,002

N u m be r o f b u ild in g em ployees, D ecem ber 

31:

O ffic e rs ....................................................................... 1 16 5 4 1 81 2 6 7

506

7

O ther e m p lo ye e s.................................................... 73 318 706 472 83 90 2,767 1,071 785 581

N u m be r of banks, D ecem ber 3 1 ........................ 20 14 444 394 7 25 1,053 415 661 599 342

Note: For average asset and liability data by State, see Table 109, pp. 152-153.

Back figures, 1946-1965: See the Annual Report for 1965, pp. 164-173, and earlier reports.

INCOME OF INSURED BANKS 171

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 117. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

BY STATE, 1966— CONTINUED

(Am ounts in thousands of dollars)

Incom e item Louisiana M aine M aryland Massachusetts M ichigan M innesota

M ississippi M issouri M ontana Nebraska Nevada

Current operating revenue—total.................... 239,746 55,517 208,589 471,059 833,059 361,646 120,794 451,463 68,141 132,330 46,591

In te re s t on U. S. G ove rn m e n t o b lig a tio n s ... 42,769 6,015 26,856 38,340 112,382 56,496 17,672 74,153 10,775 19,711 5,785

In te re s t and d ividen ds on o th e r s e c u ritie s .. 19,119 4,343 13,282 27,424 69,941 29,555 12,523 38,476 4,668 8,268 3,315

In te re s t and d isco u n t on lo a n s ........................ 150,404 38,097 138,993 314,857 564,445 222,531 75,480 291,752 43,651 89,003 30,384

Service charges and fees on lo a n s ................ 1,975 571 4,304 4,380 11,841 2,621 492 2,967 1,033 545 1,384

Service charges on d e p o sit a c c o u n ts ........... 13,284 3,314 14,624 27,206 31,332 19,435 7,264 17,367 4,721 7,530 3,197

O ther charges, com m ission s, fees, e tc ......... 7,542 608 3,677 18,244 13,757 17,643 4,706 6,655 1,883 2,824 545

T ru s t d e p a rtm e n t................................................... 1,818 2,071 4,245 29,780 22,398 9,966 1,180 11,950 690 2,676 1,237

O ther c u rre n t o p e ra tin g re v e n u e .................... 2,835 498 2,608 10,828 6,963 3,399 1,477 8,143 720 1,773 744

Current operating expenses—total................. 174,081 42,939 147,543 327,366 660,946 279,387 86,689 319,891 51,557 94,163 34,791

Salaries—o ffic e rs .................................................... 20,780 4,986 14,410 36,476 47,228 38,084 13,006 39,275 7,983 19,351 4,302

Salaries and w ages—o th e r e m p lo y e e s .......... 30,853 8,641 32,257 79,570 110,139 39,953 15,130 55,024 7,551 14,796 6,734

O fficer and em ployee b e n e fits ......................... 6,219 1,778 6,119 18,014 24,051 10,267 3,980 11,005 2,279 4,210 874

Fees paid to d ire cto rs and c o m m itte e s ........ 2,230 438 1,125 1,684 2,728 2,348 1,128 2,900 415 1,269 100

In te re s t on tim e and savings d e p o s its ......... 59,916 15,560 51,226 88,903 340,313 122,281 29,107 127,070 18,969 29,717 13,331

In te re s t on borrow ed m o n e y ............................. 3,249 397 2,078 11,369 6,628 5,719 977 9,034 464 900 80

O ccupancy expense of bank p rem ises— net. 11,438 2,724 9,922 23,186 32,015 12,859 3,605 15,857 2,416 4,651 2,850

F u rn itu re and e q u ip m e n t................................... 6,389 1,537 6,040 13,598 17,016 8,286 3,462 10,720 1,614 4,186 1,506

O ther c u rre n t o p e ra tin g e xp e n se s ................. 33,007 6,878 24,366 54,566 80,828 39,590 16,294 49,006 9,866 15,083 5,014

Net current operating earnings...................... 65,665 12,578 61,046 143,693 172,113 82,259 34,105 131,572 16,584 38,167 11,800

Recoveries, transfers from valuation reserves, and profits—total.......................... 8,232 502 4,453 6,379 14,600 4,410 3,929 15,917 2,913 2,989 431

On securities:

P rofits on securitie s sold or redeem ed ... 962 112 344 833 1,087 609 316 1,708 138 315 48

Recoveries 19 4 39 73 15 850 430 37 300 592

T ransfers fro m valuation reserves 993 55 153 1,168 8,963 556 1,002 6,360 379 1,179

On loans:

Recoveries 299 46 69 185 179 513 356 578 270 255

T ransfers fro m valuation re s e rv e s ............. 671 17 455 542 796 131 1,250 2,606 1,203 259

All o th e r...................................................................... 5,288 268 3,393 3,578 3,560 1,751 575 4,628 623 389 383

Losses, charge-offs, and transfers to valuation reserves—total.................................. 18,298 4,175 15,928 39,128 65,717 24,634 14,653 37,374 4,839 11,193 3,256

On securitie s:

Losses on se cu ritie s s o ld ................................ 1,699 1,447 2,786 6,489 25,418 9,105 966 10,125 1,464 3,460 344

Charge-offs p rio r to s a le ................................. 289 23 91 31 110 300 1,097 1,127 294 647

T ransfers to valuation reserves 1,448 156 1,365 4,876 371 205 2,568 2,376 350 249

On loans:

Losses and charge-offs 648 24 140 241 320 852 508 1,594 371 380

T ra n sfe rs to valuation re s e rv e s ................... 11,569 1,910 9,535 21,395 35,715 11,463 7,949 17,263 1,756 4,758 2,406

All o th e r...................................................................... 2,645 615 2,011 6,096 3,783 2,709 1,565 4,889 604 1,699 506

Net income before related taxes.................... 55,599 8,905 49,571 110,944 120,996 62,035 23,381 110,115 14,658 29,963 8,975

172 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Taxes on net income—to ta l.............................

F ed era l..............................................................

State .............................................................................

15.032

15.032

1.955

1.955

16.526

16.526

43,400

34,172

9,228

15.006

15.006

18,508

12,566

5,942

5.131

5.131

30,854

28,629

2,225

4,306

3,943

363

8.299

8.299

2.683

2.683

Net income after related taxes....................... 40,567 6,950 33,045 67,544 105,990 43,527 18,250 79,261 10,352 21,664 6,292

Dividends and interest on capital—total.........

Cash d ivid e n d s declared on com m o n stock. 

D ividends declared on p re fe rre d stock and 

in te re s t on capita l notes and d e b e n tu re s.

13,161

12,622

539

3,658

3,581

77

13,485

13,062

423

36,144

36,135

9

42,115

38,742

3,373

19,560

19,395

165

7,155

6,891

264

27,764

26,381

1,383

6.158

6.158

8,762

8,614

148

3,463

3,339

124

Net additions to capital from income............ 27,406 3,292 19,560 31,400 63,875 23,967 11,095 51,497 4,194 12,902 2,829

N u m b e r of ban kin g em plo yees (exclusive of 

b u ild in g em plo yees), D ecem b er 31:

A ctive o ffic e rs ..........................................................

O ther e m p lo ye e s.....................................................

1,963

7,842

531

2,390

1,418

8,084

3,037

18,604

3,883

25,996

3,688

10,484

1,294

4,074

3,800

14,191

749

1,973

1,974

4,098

422

1,640

Memoranda

R ecoveries cre d ite d to valuation reserves 

(n o t in clude d in recoveries above):

On s e c u ritie s ............................................................. 19 247 4 20 16

1,100

1,323

3,708

80 2 36

407

65

1,906

On lo a n s .....................................................................

Losses charged to valuation reserves (not 

included in losses above):

On s e c u ritie s .............................................................

1,895

161

511

294

603

146

3,705

4.991

5,592

16.991

6,729

419

20,423

1,544

10

5,360

2,203

1,579

8,784

4,253 1,690

65

On lo a n s ..................................................................... 6,639 1,164 3,534 3,423

Occupancy expense of

bank premises

Occupancy expense of bank premises, n e ttotal..............................................................

Rental and o th e r in c o m e .........................................

Occupancy expense of bank premises,

gross—total.................................................

S alaries— build in g d e p a rtm e n t o ffice rs

11,438

2,744

14,182

51

2,724

562

3,286

5

9,922

1,352

11,274

13

23,186

3,642

26,828

174

32,015

3,778

35,793

170

12,859

4,594

17,453

19

3,605

1,921

5,526

1

15,857

3,612

19,469

50

2,416

690

3,106

4,651

1,284

5,935

20

2,850

590

3,440

11

Salaries and wages— b u ild in g d e p a rtm e n t

e m p lo y e e s .............................................................

B u ild in g d e p a rtm e n t personnel b e n e fits . ..

R ecurring d e p re c ia tio n ........................................

M aintenance and re p a irs ....................................

Insurance and u tilitie s .........................................

Rents p a id .................................................................

T a x e s ...........................................................................

2,095

173

2,182

1,522

2,008

3,085

3,066

485

41

603

312

543

827

470

629

108

2,284

1,545

2,005

3,633

1,057

2,583

446

4,253

2,740

4,810

6,786

5,036

4,664

652

6,882

4,909

6,334

7,535

4,647

1,404

104

2,572

1,803

3.483 

5,585

2.483

547

71

895

860

1,144

803

1,205

2,305

309

4,784

3,064

3,502

3,573

1,882

403

46

598

336

543

486

694

732

89

1,036

629

993

1,589

847

306

26

733

376

626

919

443

N u m be r o f b u ild in g em ployees, D ecem ber 

31:

O ffic e rs ....................................................................... 7 1 16 19

1,455

2 2 20

919

7 1

O ther em p lo ye e s..................................................... 707 241 287 814 701 265 173 423 77

N u m be r of banks, D ecem ber 3 1 ........................ 219 41 121 157 345 719 190 652 131 433 9

Note: For average asset and liability data by State, see Table 109, pp. 152-153.

Bach figures, 1946-1965: See the Annual Report for 1965, pp. 164-173, and earlier reports.

INCOME OF INSURED BANKS 173

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 117. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

BY STATE, 1966— CONTINUED

(Am ounts in thousands of dollars)

Incom e item New

H a m psh ire

New

Jersey

New

Mexico

New

York

N orth

Carolina

N orth

Dakota Ohio O klahom a Oregon Pennsylvania

Rhode

Island

Current operating revenue—total.................... 38,949 583,211 60,537 3,663,835 280,635 57,317 871,823 211,027 178,711 1,192,701 77,457

In te re s t on U .S . G o ve rn m e n t o b lig a tio n s ... 3,704 64,280 8,483 268,058 26,992 11,556 129,030 33,231 18,813 135,102 5,199

In te re s t and d ivid e n d s on o th e r s e c u ritie s .. 2,144 61,015 3,209 298,114 23,415 5,652 76,403 14,956 12,474 98,492 8,150

In te re s t and d isco u n t on lo a n s ........................ 28,314 387,322 40,758 2,566,600 184,539 32,922 570,587 139,000 120,904 810,608 52,959

Service charges and fees on lo a n s ................ 337 6,621 520 35,854 7,078 352 6,611 1,495 2,500 11,383 644

Service charges on d e p o sit a c c o u n ts ........... 2,707 31,812 4,435 97,194 16,122 2,851 38,518 13,601 15,486 35,982 3,324

O ther charges, com m ission s, fees, e tc ........ 580 7,330 1,698 47,290 10,789 3,072 10,901 3,497 2,185 12,604 1,223

T ru s t d e p a rtm e n t................................................... 631 18,791 807 239,159 8,582 391 31,460 2,946 4,304 68,133 5,391

O ther c u rre n t o p e ra tin g re v e n u e .................... 532 6,040 627 111,566 3,118 521 8,313 2,301 2,045 20,397 567

Current operating expenses—total................. 29,270 450,105 45,947 2,687,119 209,357 43,226 636,163 151,833 142,561 877,301 57,230

Salaries—o ffic e rs .................................................... 3,721 42,730 6,729 187,528 27,665 7,062 56,376 26,104 18,137 79,537 4,422

Salaries and wages— o th e r e m p lo y e e s ......... 4,921 86,582 9,215 481,871 41,229 5,303 109,393 24,911 25,378 151,187 10,078

O fficer and em ployee b e n e fits ......................... 1,135 20,166 1,481 130,876 8,616 1,622 22,049 5,878 4,754 39,147 2,872

Fees paid to d ire c to rs and c o m m itte e s ........ 368 3,287 429 5,596 1,044 472 3,566 1,501 316 6,419 252

In te re s t on tim e and savings d e p o s its ......... 11,442 184,895 14,193 1,265,058 79,315 19,566 291,850 53,639 64,426 390,949 28,036

In te re s t on borrow ed m o n e y ............................ 131 5,094 355 109,359 2,303 144 5,825 3,029 990 13,850 653

O ccupancy expense o f bank p rem ises -net. 1,590 27,539 2,981 160,627 11,814 2,072 28,066 8,048 7,626 45,735 2,768

F u rn itu re and e q u ip m e n t................................... 1,063 15,465 2,097 56,503 7,656 1,148 17,816 5,848 4,759 29,244 1,685

O ther c u rre n t o p e ra tin g e xp e n se s ................. 4,899 64,347 8,467 289,701 29,715 5,837 101,222 22,875 16,175 121,233 6,464

Net current operating earnings...................... 9,679 133,106 14,590 976,716 71,278 14,091 235,660 59,194 36,150 315,400 20,227

Recoveries, transfers from valuation reserves, and profits—total.......................... 738 7,428 1,117 30,825 5,264 716 17,861 3,672 1,199 62,267 1,721

On securitie s:

P rofits on se cu ritie s sold o r re d e e m e d ... 377 2,424 154 8,633 862 179 1,747 1,396 197 3,463 84

Recoveries 3 157 6 261 6 119 65 95 296

T ra n sfe rs fro m va lu a tio n reserves 53 1,578 1 5,760 646 7,964 380 33,715 580

On loans:

R e coveries............................................................. 22 128 84 445 42 99 456 975 74 864 5

T ra n sfe rs fro m valu a tio n re s e rv e s ............. 36 2,019 116 4,229 599 93 3,724 358 6 17,135 850

All o th e r...................................................................... 247 1,122 756 11,497 3,109 226 3,905 468 922 6,794 202

Losses, charge-offs, and transfers to valuation reserves—to tal.................................. 2,832 34,531 4,928 336,125 22,395 3,281 65,535 16,132 10,226 145,247 7,648

On securitie s:

Losses on se cu ritie s s o ld ................................ 652 10,822 1,272 156,526 6,543 1,464 20,042 2,643 2,095 18,171 3,150

C harge-offs p rio r to sale 81 66 24 491 88 75 253 132 268 4

T ra n sfe rs to valuation reserves 1 1,872 12 3,894 1,828 12 7,607 291 5,483 170

On loans:

Losses and c h a rg e -o ffs .................................... 57 299 147 336 136 103 687 2,069 250 1,024 53

T ransfers to valuation re s e rv e s ................... 1,710 17,119 2,868 159,269 9,900 1,079 32,070 9,664 6,285 40,000 3,395

All o th e r ...................................................................... 331 4,353 605 15,609 3,900 548 4,876 1,333 1,596 80,301 876

Net income before related taxes.................... 7,585 106,003 10,779 671,416 54,147 11,526 187,986 46,734 27,123 232,420 14,300

i174 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Taxes on net income—total............................. 2.372

2.372

20.548

20.548

3.233

3.233

170,765

127,276

43,489

14,346

12,825

1,521

2,875

2,565

310

49.894

49.894

13,874

12,643

1,231

7,876

5,473

2,403

62.269

62.269

2,885

2,123

762

F ed era l........................................................................

State .............................................................................

Net income after related taxes.......................

Dividends and interest on capital—to ta l........

Cash d ividen ds declared on com m o n stock. 

D ividends declared on p re fe rre d stock and 

in te re s t on capita l notes and d e b e n tu re s.

5,213 85,455 7,546 500,651 39,801 8,651 138,092 32,860 19,247 170,151 11,415

1.928

1.928

38,166

35,936

2,230

3,349

3,258

91

316,957

283,510

33,447

16,488

15,062

1,426

3.518

3.518

57,235

57,011

224

16,186

15,300

886

10,523

10,483

40

99,742

98,123

1,619

6,006

6,006

Net additions to capital from income............ 3,285 47,289 4,197 183,694 23,313 5,133 80,857 16,674 8,724 70,409 5,409

N u m b e r of b a n kin g em ployees (exclusive of 

b u ild in g em plo yees), D ecem ber 31: 

A ctive o ffic e rs .......................................................... 371

1,325

3,619

19,715

633

2,359

12,816

86,538

2,626

11,790

769

1,546

4,810

25,974

2,570

6,652

1,836

5,957

7,238

35,496

374

O ther em p lo ye e s..................................................... 2,492

Memoranda

Recoveries cre d ite d to valuation reserves 

(n o t in clude d in recoveries above):

On s e c u ritie s ............................................................. 7

313

48

742

4

3,296

611

13,059

410

16,951

6,533

102,549

181

876

665

3,798

780

5,084

3,902

16,488

12

3,466

36

9,082

83

6,024

7,712

25,749

1

259

48

1,159

On lo a n s ..................................................................... 1,759 324 666

Losses charged to valuation reserves (not 

included in losses above):

On s e c u ritie s .............................................................

On lo a n s ...................................................................... 4,505 666 2,952

Occupancy expense of

bank premises

Occupancy expense of bank premises, n e ttotal .............................................................. 1,590

184

1,774

1

187

16

328

160

300

465

317

27,539

3,162

30,701

31

3,156

460

5,442

4,639

4,739

6,482

5,752

2,981

517

3,498

4

455

60

735

365

544

960

375

160,627

31,402

192,029

473

13,996

2,557

37,226

15,588

35,029

58,435

28,725

11,814

2,257

14,071

42

1,291

112

2,777

1,625

2,519

4,563

1,142

2,072

415

2,487

4

284

25

600

185

589

410

390

28,066

13,105

41,171

159

6,612

782

7,588

5,230

6,984

10,356

3,460

8,048

3,903

11,951

24

1,530

188

2,274

1,334

2,179

3,515

907

7,626

385

8,011

89

701

89

1,961

1,369

1,441

1,202

1,159

45,735

7,181

52,916

187

8,351

1,194

10,222

5,369

8,642

12,784

6,167

2,768

1,649

4,417

49

1,059

156

687

454

528

808

676

R ental and o th e r in c o m e ........................................

Occupancy expense of bank premises,

gross—total.................................................

S alaries— b u ild in g d e p a rtm e n t o ffice rs 

Salaries and w ages— build in g d e p a rtm e n t

e m p lo ye e s.............................................................

B u ild ing d e p a rtm e n t personnel b e n e fits . . .

R ecurring d e p re c ia tio n ........................................

M aintenance and re p a irs ....................................

Insurance and u tilitie s .........................................

Rents p a id .................................................................

T a x e s ...........................................................................

N u m be r of build in g em ployees, D ecem ber 

31:

O ffic e rs ........................................................................ 1

88

4

939

31

3,002

3

618

3

178

14

2,162

5

571

8

198

26

2,869

3

O ther e m p lo ye e s................................................. 145 304

N u m be r of banks, D ecem ber 3 1 ........................ 72 229 64 311 136 164 536 419 49 536 9

Note: For average asset and liability data by State, see Table 109, pp. 152-153.

Back figures, 1946-1965: See the Annual Report for 1965, pp. 164-173, and earlier reports.

INCOME OF INSURED BANKS 175

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 117. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

BY STATE, 1966— CONTINUED

(Am ounts in thousands of dollars)

Incom e item S outh

C arolina

South

Dakota Tennessee Texas Utah V e rm ont Virginia W ashington

W est

Virginia W isconsin W yom ing

Current operating revenue—total.................... 90,330 64,491 277,322 953,226 85,745 35,190 319,763 246,782 103,742 355,821 32,907

In te re s t on U. S. G overnm e nt o b lig a tio n s ... 12,024 13,097 38,712 118,014 7,625 3,967 37,089 25,406 23,037 64,736 5,502

In te re s t and d ivid e n d s on o th e r s e c u ritie s .. 7,594 4,175 22,504 78,322 7,230 2,371 22,413 16,463 7,604 30,607 1,730

In te re s t and d is c o u n t on lo a n s ........................ 57,760 39,532 189,766 649,505 57,970 25,375 219,040 162,966 63,976 225,462 21,981

Service charges and fees on lo a n s ................ 503 337 3,362 10,039 1,710 373 5,929 4,001 903 2,346 322

Service charges on d e p o sit a c c o u n ts ........... 6,084 3,379 10,357 49,753 6,265 1,889 17,614 21,003 3,349 14,599 1,941

O ther charges, com m ission s, fees, e tc ........ 3,477 3,006 5,149 14,183 2,576 254 6,041 6,709 1,560 6,079 856

T ru s t d e p a rtm e n t................................................... 1,818 567 5,463 20,803 1,890 667 9,060 7,211 2,222 8,301 288

O ther c u rre n t o p e ra tin g re v e n u e .................... 1,070 398 2,009 12,607 479 294 2,577 3,023 1,091 3,691 287

Current operating expenses—total................. 61,776 47,161 201,740 707,120 64,185 28,421 240,034 187,510 71,236 270,145 25,097

Salaries—o ffic e rs .................................................... 11,008 8,797 22,893 91,165 6,714 2,839 27,035 21,552 9,173 34,968 3,798

Salaries and w ages o th e r e m p lo y e e s ......... 16,005 6,465 33,658 109,438 9,926 4,328 42,224 41,058 12,075 38,871 3,904

O fficer and em ployee b e n e fits ......................... 3,373 2,105 7,644 23,307 2,163 929 9,384 8,540 2,512 10,452 770

Fees paid to d ire cto rs and c o m m itte e s ........ 620 582 1,258 6,879 431 364 2,072 456 982 3,043 363

In te re s t on tim e and savings d e p o s its ......... 12,262 19,006 84,964 272,730 30,330 14,646 101,474 71,977 28,885 125,414 10,118

In te re s t on borrow ed m o n e y ............................ 131 169 4,132 20,018 1,219 52 1,970 1,469 316 1,985 234

O ccupancy expense of bank p re m is e s —net. 3,666 2,406 9,988 41,766 2,922 1,407 11,855 10,869 3,382 12,380 1,312

F urn itu re and e q u ip m e n t................................... 3,136 1,437 7,563 24,407 2,580 706 7,796 7,256 2,369 8,956 954

O ther c u rre n t o p e ra tin g e xp e n se s ................. 11,575 6,194 29,640 117,410 7,900 3,150 36,224 24,333 11,542 34,076 3,644

Net current operating earnings...................... 28,554 17,330 75,582 246,106 21,560 6,769 79,729 59,272 32,506 85,676 7,810

Recoveries, transfers from valuation reserves, and profits—to ta l.......................... 677 680 7,165 11,272 254 450 7,775 3,960 2,586 5,771 345

On securitie s:

P rofits on se cu ritie s sold or re d e e m e d ... 194 105 4,083 2,118 43 151 667 848 931 3,556 72

Recoveries .................................. 20 111 47 175 2 23 26 15 129 23

T ra n sfe rs fro m valuation reserves 98 523 728 16 13 3,235 516 16 55

On loans:

R e coveries............................................................. 39 52 271 3,006 55 17 198 92 158 43 108

T ra n sfe rs fro m valuation re s e rv e s ............. 91 87 757 2,352 10 38 238 1,697 256 627 24

All o th e r...................................................................... 235 325 1,484 2,893 130 229 3,414 781 1,210 1,361 118

Losses, charge-offs, and transfers to valuation reserves—total.................................. 4,269 3,828 20,051 70,160 6,796 1,853 27,873 18,872 6,529 17,447 1,987

On securitie s:

Losses on se cu ritie s s o ld ................................ 471 1,671 6,816 9,094 2,741 540 6,092 6,227 1,001 6,671 319

C harge-offs p rio r to s a le ................................. 29 32 670 485 13 21 45 4 52 160 16

Tra n sfe rs to valuation re s e rv e s ...................

On loans:

Losses and c h a rg e -o ffs ....................................

164

106

7

114

506

591

4,903

6,165 172

10

10

3,470

319

640

187

161

251

51

93

37

146

T ra n sfe rs to valuation re s e rv e s ................... 2,850 1,432 9,059 42,698 3,318 1,159 14,755 9,412 4,190 9,220 1,293

All o th e r...................................................................... 649 572 2,409 6,815 552 113 3,192 2,402 874 1,252 176

Net income before related taxes.................... 24,962 14,182 62,696 187,218 15,018 5,366 59,631 44,360 28,563 74,000 6,168

176 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Taxes on net income—to ta l.............................

F ed era l........................................................................

S ta te .............................................................................

8,853

8,260

593

4,164

3,759

405

18,721

18,355

366

51.785

51.785

3,824

3,384

440

1,265

1,115

150

15.346

15.346

14.721

14.721

10.056

10.056

25,012

20,709

4,303

2.077

2.077

Net income after related taxes....................... 16,109 10,018 43,975 135,433 11,194 4,101 44,285 29,639 18,507 48,988 4,091

Dividends and interest on capital—total........

Cash d ivid e n d s declared on com m o n stock. 

D ividends declared on p re fe rre d stock and 

in te re s t on ca p ita l notes and deb entu res.

6,477

6,476

1

3,700

3,682

18

15,038

14,110

928

64,988

63,468

1,520

6,854

6,686

168

1,747

1,687

60

21,169

20,992

177

12,988

12,970

18

6,043

6,037

6

19,059

18,371

688

1,964

1,908

56

Net additions to capital from income............ 9,632 6,318 28,937 70,445 4,340 2,354 23,116 16,651 12,464 29,929 2,127

N u m be r of b a n kin g em ployees (exclusive of 

bu ild in g em plo yees), D ecem ber 31:

A ctive o ffic e rs ..........................................................

O ther e m p lo ye e s ....................................................

1,107

4,685

930

1,993

2,485

9,076

8,600

27,562

682

2,761

315

1,145

3,643

10,484

2,016

9,418

985

3,149

3,243

10,507

366

947

Memoranda

Recoveries cre d ite d to valuation reserves 

(n o t in clude d in recoveries above):

On s e c u ritie s ............................................................ 2 4 344 155 2 3

On lo a n s .....................................................................

Losses charged to valuation reserves (not 

included in losses above):

On s e c u ritie s ............................................................

401 525

8

2,590

40

16,931

5,366

48,447

263 182 1,652

3,580

1,155

77

537

48

2,245

47

389

On lo a n s ..................................................................... 1,262 1,140 6,449 2,442 725 7,522 3,702 2,082 6,026 978

Occupancy expense of

bank premises

Occupancy expense of bank premises, n e ttotal ..............................................................

Rental and o th e r in c o m e ........................................

Occupancy expense of bank premises,

gross—total.................................................

S alaries— b u ild in g d e p a rtm e n t o ffic e rs ........

Salaries and w ages— b u ild in g d e p a rtm e n t

e m p lo ye e s.............................................................

B u ild ing d e p a rtm e n t personnel b e n e fits. . .

R ecurring d e p re c ia tio n ........................................

M aintena nce and re p a irs ....................................

Insurance and u tilitie s .........................................

Rents p a id .................................................................

T a xe s ...........................................................................

3,666

371

4,037

1

356

50

940

598

952

899

241

2,406

389

2,795

3

331

42

402

253

638

626

500

9,988

3,106

13,094

45

1,635

162

3,179

1,453

2,261

2,034

2,325

41,766

30,708

72,474

209

6,902

681

13,984

6,721

12,443

13,666

17,868

2,922

1,145

4,067

13

523

40

838

356

634

1,168

495

1,407

165

1,572

1

211

21

288

125

248

476

202

11,855

1,783

13,638

10

1,834

209

2,428

1,213

2,655

4.229

1,060

10,869

1,031

11,900

68

939

165

3,280

2,184

2,022

2,078

1,164

3,382

857

4,239

23

681

68

960

481

791

637

598

12,380

2,785

15,165

62

1,898

209

2,965

1,465

2,670

3,321

2,575

1,312

252

1,564

4

166

14

430

170

313

150

317

N u m be r o f bu ild in g em ployees, Decem ber 

31:

O ffic e rs ....................................................................... 1 5 6 19 1 1 9 3 6 2

O ther e m p lo ye e s.................................................... 210 234 653 2,246 195 103 863 283 303 845 64

N um ber o f banks, D ecem ber 3 1 ........................ 124 166 294 1,137 55 47 251 94 189 588 69

Note: For average asset and liability data by State, see Table 109, pp. 152-153.

Back figures, 1946-1965: See the Annual Report for 1965, pp. 164-173, and earlier reports.

INCOME OF INSURED BANKS 177

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T a b l e 1 1 8 . INCOME OF INSURED MUTUAL SAVINGS BANKS, 1958-1966

(Am ounts in thousands of dollars)

Incom e item 1958 1959 1960 1961 1962 1963 1964

I

1965 1966

Current operating income—total.............................................. 1,149,643 1,280,347 1,461,763 1,595,183 1,755,582 1,946,776 2,164,115 2,391,753 2,606,012

In te re s t on U. S. G overnm e nt o b lig a tio n s ................................. 141,950 146,353 152,458 151,931 156,410 153,659 153,368 147,751 142,509

In te re s t and d ividen ds on o th e r s e c u ritie s ................................ 167,489 180,535 199,258 205,751 206,367 203,720 207,164 211,278 226,023

In te re s t and d isco u n t on real estate m ortgage loans -n e t. 808,975 921,315 1,070,173 1,194,282 1,342,896 1,534,446 1,738,621 1,950,930 2,141,099

Interest and discount on real estate mortgage loans—gross....................... 836,515 951,952 1 , 104,100 1 ,231,774 1,3 83 ,73 5 1 ,5 80 ,27 6 1 ,7 90 ,31 8 2 ,0 09 ,21 4 2 ,2 03 ,13 3

Less: Mortgage servicing fees..................................................................... 25,985 29,154 32,343 36,045 39,283 44,174 49,756 56,165 59,998

Premium amortization...................................................................... 1,555 1,483 1,584 1,447 1,556 1,656 1,941 2 ,119 2 ,036

In te re s t and d isco u n t on o th e r loans and d is c o u n ts - n e t... 11,749 12,669 18,407 18,767 22,733 27,576 33,538 41,773 53,172

Incom e on real estate o th e r than bank b u ild in g — n e t.......... 2 -1 27 -3 8 -52 -108 -122 -97 -255

Income on real estate other than bank building—gross.............................. 139 216 397 379 302 296 421 541 513

Less: Operating expense............................................................................. 137 217 370 417 354 404 543 638 768

Incom e on o th e r a s s e ts ...................................................................... 8,384 7,486 7,474 9,081 9,777 9,984 13,121 18,713 18,095

Incom e fro m service o p e ra tio n s .................................................. 11,094 11,990 13,966 15,409 17,451 17,499 18,425 21,405 25,369

Current operating expenses—total........................................... 187,758 201,402 224,789 241,685 252,963 274,544 290,471 311,755 334,451

S a laries—o ffic e rs ................................................................................... 30,099 32,082 36,608 38,158 40,466 42,792 45,391 48,514 52,085

Salaries and w ages—o th e r e m p lo ye e s......................................... 61,797 64,396 71,295 75,303 79,165 84,514 89,514 93,680 98,421

Pension, hosp italization and group insurance paym ents, 

and o th e r em ployee b e n e fits .................................................... 18,314 20,006 22,656 24,134 25,419 27,202 28,138 30,080 33,593

Fees paid to tru ste e s and c o m m itte e m e m b e rs ..................... 3,203 3,366 3,731 3,994 4,158 4,404 4,604 4,720 4,855

O ccupancy, m aintena nce, etc. of bank prem ises (in clu d in g 

taxes and re cu rrin g d e p re cia tio n ) n e t.............................. 20,925 22,695 25,255 27,369 29,269 32,160 34,683 37,219 38,855

Occupancy, maintenance, etc. of bank premises (including taxes and

recurring depreciation)—gross............................................................ 30,252 32,268 35,120 3 f, 298 39,297 42,583 45,871 49,093 51,387

Less: Income from bank building.............................................................. 9,327 9,573 9,865 9,929 10,028 10,423 11,188 11,874 12,532

D eposit insurance a s s e s s m e n ts .................................................... 10,183 11,316 11,707 12,824 12,172 12,709 14,035 15,887 16,810

Furniture and fix tu re s (in c lu d in g recu rrin g d ep reciation). . 3,501 4,445 4,740 5,438 5,997 7,714 9,182 10,262 11,777

All o th e r c u rre n t o p e ratin g e x p e n s e s .......................................... 39,736 43,096 48,797 54,465 56,317 63,049 64,924 71,393 78,055

Net current operating income............ .......... 961,885 1,078,945 1,236,974 1,353,498 1,502,619 1,672,232 1,873,644 2,079,998 2,271,561

Franchise and income taxes—total.......................................... 10,342 11,649 13,637 16,011 17,966 22,587 26,022 29,487 37,480

State fra n ch ise and incom e ta x e s ................................................. 9,831 11,172 13,190 15,277 17,502 19,168 21,657 22,048 31,426

Federal incom e ta x e s .......................................................................... 511 477 447 734 464 3,419 4,365 7,439 6,054

Net current operating income after taxes 951,543 1,067,296 1,223,337 1,337,487 1,484,653 1,649,645 1,847,622 2,050,511 2,234,081

Dividends and interest on deposits......................................... 812,254 897,469 1,073,542 1,147,767 1,334,005 1,481,869 1,653,768 1,809,350 2,087,072

Net current operating income after taxes and dividends........ 139,289 169,827 149,795 189,720 150,648 167,776 193,854 241,161 147,009

Non-recurring income, realized profits and recoveries

credited to profit and loss, and transfers from valuation

adjustment provisions—total............................................. 66,160 91,205 142,009 113,763 105,907 113,085 105,454 75,130 177,612

N on-recurring in c o m e ......................................................................... 17,295 21,147 31,133 17,567 20,453 28,678 18,048 15,242 20,211

Realized p ro fits and recoveries on:

S ecurities sold or m a tu re d ............................................................ 30,974 39,498 34,860 54,263 55,751 28,752 36,472 27,375 59,173

Real estate m ortgage lo a n s .......................................................... 138 192 283 629 739 2,465 1,088 1,266 773

O ther real e s ta te ................................................................................ 367 646 535 337 462 807 571 719 1,548

All o th e r a s s e ts .................................................................................. 624 2,498 6,576 459 957 871 1,096 1,532 3,429

Transfers fro m valuation a d ju s tm e n t p ro v is io n s 1 on: 

S e c u ritie s .............................................................................................. 8,345 14,270 57,588 10,873 5,460 26,995 22,029 11,817 13,635

Real estate m ortgage lo a n s .......................................................... 8,068 12,021 10,480 29,068 21,465 24,342 25,786 16,365 78,458

28 17 86 36 66 46 92 121 20

All o th e r a s s e ts ................................................................................... 321 916 468 531 554 129 272 693 365

178 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Non-recurring expenses, realized losses charged to profit

and loss, and transfers to valuation adjustment provisions—total........................................................................

N o n -recurring e x p e n s e s ....................................................................

Realized losses on:

S ecurities s o ld ....................................................................................

Real estate m ortgage lo a n s .........................................................

O ther real e s ta te ...............................................................................

All oth e r a s s e ts ..................................................................................

T ra n s fe rs to valuation a d ju s tm e n t p ro v is io n s 1 on:

S e c u ritie s ..............................................................................................

Real estate m ortgage lo a n s .........................................................

O ther real e s ta te ...............................................................................

All other a s s e ts ..................................................................................

Net additions to total surplus accounts from operations.

Memoranda

Recoveries credited to valuation adjustment provisions1

(not included in recoveries above) on:

S e c u ritie s ................................................................................................

Real estate m ortgage lo a n s ...........................................................

O ther real e s ta te .................................................................................

All o th e r a s s e ts ...................................... .............................................

Realized losses charged to valuation adjustment provisions1 (not included in realized losses above) on:

S e c u ritie s ................................................................................................

Real estate m ortgage lo a n s ...........................................................

O ther real e s ta te ..................................................

All o th e r a s s e ts ....................................................................................

Average assets and liabilities2

Assets—total..............................................

Cash and due fro m b a n k s .........................

U nited States G overnm ent obliga tions.

O ther s e c u ritie s ..............................................

Real estate m ortgage lo a n s ......................

O ther loans and d is c o u n ts ........................

O ther real e s ta te ............................................

All o th e r a s s e ts ...............................................

Liabilities and surplus accounts—total.

Total d e p o s its ...............................................

Savings and time deposits.................................

Demand deposits...............................................

O ther lia b ilitie s .............................................

Total su rp lu s a c c o u n ts .............................

N u m be r of active o ffice rs, D ecem ber 3 1 ___

N u m be r of o th e r em ployees, D ecem ber 3 1.

N u m be r of banks, D ecem ber 31 .

79,852

13,699

25,056

603

191

684

21,946

16,733

45

895

125,597

571

14

6,267

217

3

300

29.160.570

742,225

5,338,796

4,378,447

18,045,621

227,027

4,361

424,093

29.160.570

26,304,610

26,274,758

29,852

431,019

2,424,941

2,356

14,925

241

126,876

11,385

66,875

330

260

440

30,347

16,151

40

1,048

134,156

173

99

2

37

9,339

197

26

385

31.248.671

689,698

5,236,825

4,677,222

19,937,652

244,010

7,002

456,262

31.248.671

28,136,390

28,106,089

30,301

512,192

2,600,089

2,504

15,110

268

123,664

16,981

63,846

508

210

315

23,352

17,679

19

754

168,140

471

136

585

8,110

1,131

13

165

34.339.564

721,308

5,092,512

5,036,291

22,628,058

355,327

11,555

494,513

34.339.564

30,822,839 

30,790,599

32,240

598,011 

2,918,714

2,885

16,753

325

116,143

17,692

40,851

1,252

375

404

19,337

35,377

111

744

187,340

278

53

7,721

720

5

218

35.916.590

757,912

4,791,909

5,228,022

24,255,437

353,474

18,955

510,881

35.916.590

32,320,488

32,113,129

207,359

506,744

3,089,358

2,977

17,290

330

109,192

18,941

31,379

1,083

662

424

30,925

25,252

76

450

147,363

1,658

5,830

501

6

448

38.152.221

794,362 

4,748,691 

5,151,555 

26,435,337 

441,994 

19,640 

560,642

38.152.221

34,350,820

34,070,511

280,309

537,630

3,263,771

3,085

17,617

331

101,611

17,331

47,629

1,681

656

655

11,548

21,534

74

503

179,250

3,389

201

12,973

5,136

190

178

41.180.616

786,298

4,563,328

5,115,637

29,5-8,513

543,458

21,114

612,268

41.180.616

37,175,285

36,870,906

304,379

588,622

3,416,709

3,170

18,459

330

88,234

12,991

39,884

2,023

712

936

8,692

22,266

57

673

211,074

756

64

6,058

765

258

44.609.410

768,719

4,351,966

5,057,794

33,121,502

588,196

28,389

692,844

44.609.410

40,334,274

39,997,217

337,057

660,037 

3,615,099

3,281

18,958

327

93,036

15,306

48,124

3,037

886

927

6,524

17.394

122

716

223,255

341

85

6,564

841

118

48.466.656

891,727

4,030,731

5,069,343

36,991,670

672,117

27,228

783,840

48.466.656

43,985,749

4 3,60 9,0 62

376,687

653,614

3,827,293

3,423

19,451

329

147,688

10,499

100,585

7,015

1,644

2,646

13,015

11,590

97

597

176,933

1,277

212

6,811

1,220

257

341

51.399.898

838,855

3,594,830

5,153,130

40,095,486

842,896

29,263

845,438

51.399.898

46,590,715

4 6,172,242

418,477

764,445

4,044,734

3,602

19,609

332

1 Includes “ Valuation reserves” and “ Other asset valuation provisions (direct write-downs).”

2 For 1958 through 1960, averages of figures reported at beginning, middle, and end of year. For 1961 through 1966, averages of amounts for four consecutive official call dates beginning with the end of the previous year and ending with the fall call of the current year. & 6 r

Back figures, 1934-1957: Data for 1934-1950, which however are not comparable with figures for 1951-1966, may be found in the following Annual Reports-1941 p. 173- and 1950 pp 272-273 For 1951-1957 see 

the Annual Report for 1959, pp. 166-167. ’ ’

INCOME OF INSURED BANKS 179

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T a b l e 1 1 9 . RATIOS OF INCOME OF INSURED MUTUAL SAVINGS BANKS, 1958-1966

Incom e item 1958 1959 1960 1961 1962 1963 1964 1965 1966

Amounts per $100 of current operating income

Current operating income—total............................................................................................... $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00

7.09

$100.00

6.18

$100.00

5.47

8.67

82.16

2.04

.69

.97

Interest on U. S. G overnm ent obliga tions.............................................................................................. 12.35 11.43 10.43 9.52 8.91 7.89

Interest and dividends on other securitie s............................................................................................ 14.57 14.10 13.63 12.90 11.76 10.46 9.57 8.83

Interest and discount on real estate mortgage loans—n e t.............................................................. 70.37 71.96 73.21 74.87 76.49 78.82 80.34 81 57

Interest and discount on other loans and discounts—n e t................................................................ 1.02 .99 1.26 1.18 1.29 1.42 1.55 1.75

Incom e on other assets................................................................................................................................ .73 .58 .51 .57 .56 .51 .60 .78

Income from service ope ratio ns................................................................................................................ .96 .94 .96 .96 .99 .90 .85 .89

Current operating expenses—total............................................................................................ 16.33 15.73 15.38 15.15 14.41 14.10 13.42 13.03 12.83

2.00

3.78

Salaries—office rs............................................................................................................................................ 2.62 2.51 2.50 2.39 2.30 2.20 2.10 2.03

Salaries and wages—other em ployees.................................................................................................... 5.37 5.03 4.88 4.72 4.51 4.34 4.14 3 92

Pension, hospitalization and group insurance paym ents, and other employee benefits........ 1.59

.28

1.56

.26

1.55

.26

1.51

.25

1.45

.24

1.40

.23

1.30

.21

1.26

.20

1.29

.19

1.49

Occupancy, m aintenance, etc. of bank prem ises (including taxes and recurring depreciation), 

— n e t................................................................................................................................................................ 1.82 1.77 1.73 1.72 1.67 1.65 1.60 1 55

.89 .88 .80 .80 .69 .65 .65 66 .64

.45

2.99

Furniture and fixtures (including recurring depreciation)................................................................ .30 .35 .32 .34 .34 .39 .42 43

All other curre nt operating expenses...................................................................................................... 3.46 3.37 3.34 3.42 3.21 3.24 3.00 2.98

Net current operating income................................................................................................... 83.67 84.27 84.62 84.85 85.59 85.90 86.58 86.97 87.17

.90 .91 .93 1.00 1.02 1.16 1.20 1.24 1.44

State franchise and income ta xe s............................................................................................................ .86 .87 .90 .96 1.00 .98 1.00 93 1 21

.04 .04 .03 .04 .02 . 18 .20 .31 .23

Net current operating income after taxes................................................................................. 82.77 83.36 83.69 83.85 84.57 84.74 85.38 85.73 85.73

Dividends and interest on deposits.......................................................................................... 70.65 70.10 73.44 71.95 75.99 76.12 76.42 75.65 80.09

Net current operating income after taxes and dividends......................................................... 12.12 13.26 10.25 11.90 8.58 8.62 8.96 10.08 5.64

Amounts per $100 of total assets1

Current operating income—to ta l................................................................................................................... 3.94 4.10 4.26 4.44 4.60 4.73 4.85 4 93 5.07

C urrent operating expenses—total ............................................................................................................. .64 .65 .66 .67 .66 .67 .65 64 .65

Net current operating in com e........................................................................................................................ 3.30 3.45 3.60 3.77 3.94 4.06 4.20 4 29 4.42

State franchise and income taxes. ....................................................................................................... .04 .03 .04 .05 .05 .05 .06 06 .07

Net current operating income after taxes ............................................................................................... 3.26 3.42 3.56 3.72 3.89 4.01 4.14 4 23 4.35

Dividends and interest on deposits ............................................................................................................ 2.78 2.87 3.12 3.19 3.50 3.60 3.71 3.73 4.06

Net current operating income after taxes and dividends..................................................................... .48 .55 .44 .53 .39 .41 .43 .50 .29

Non-recurring income, realized profits and recoveries credited to profit and loss, and transfers 

from valuation adjustm ent provisions2—to ta l....................................................................................... .22 .29 .41 .31 .28 .27 .24 .15 .34

Non-recurring expenses, realized losses charged to profit and loss, and transfers to valuation 

adjustm ent provisions2—to ta l.................................................................................................................... .27 .41 .36 .32 .28 .24 .20 .19 .29

Net additions to total surplus accounts from operations...................................................................... .43 .43 .49 .52 .39 .44 .47 .46 .34

Special ratios1

Interest on U. S. G overnm ent obligations per $100 of U. S. Government obligations................. 2.66 2.79 2.99 3.17 3.29 3.37 3.52 3.67 3.96

Interest and dividends on other securities per $100 of other securities.........................................

Interest and discount on real estate m ortgage loans per $100 of real estate mortgage lo ans. 

Interest and discount on other loans and discounts per $100 of other loans and discounts

Dividends and interest on deposits per $100 of savings and tim e deposits..................................

Net additions to total surplus accounts from operations per $100 of total surplus accounts.........

3.83

4.48

5.18 

3.09

5.18

3.86

4.62

5.19

3.19 

5.16

3.96

4.73

5.18

3.49

5.76

3.94

4.92

5.31

3.57

6.06

4.01

5.08

5.14

3.92

4.52

3.98

5.19

5.07

4.02

5.25

4.10

5.25

5.70

4.13

5.84

4.17

5.27

6.22

4.15

5.83

4.39

5.34

6.31

4.52

4.37

Num ber of banks, December 3 1 .................................................................................................................. 241 268 325 330 331 330 327 329 332

1 For 1958 through 1960, averages of figures reported at beginning, middle, and end of year. For 1961 through 1966, averages of amounts for four consecutive official call dates beginning with the end of the previous year and ending with the fall call of the current vear

2 Includes "Valuation reserves” and ,,n‘ - ("direct write-downs).”

Back figures, 1934,1941-1950, '^.h however are not comparable with figures for 1951-1966, may be found in the 1QRO nn Old.Oir. Fnr 1QR1 .1 (^7

180 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 120. SOURCES AND DISPOSITION OF TOTAL INCOME, INSURED MUTUAL SAVINGS BANKS, 1958-1966

(Am ounts in m illio ns of dollars)

Incom e item 195 8 1959 1960 1961 1962 1963 196 4 1965 1966

Amount

Total income...... .............................. .......... 1,216 1,372 1,604 1,709 1,861 2,060 2,270 2,467 2,783

Sources

L o a n s............................................................................................................................................................ 821 934 1,089 1,213 1,366 1,562 1,772 1,993 2,194

U.S. G overnm e nt o b lig a tio n s ............................................................................................................. 142 146 153 152 156 154 153 148 143

O ther s e c u ritie s ....................................................................................................................................... 167 181 199 206 206 204 207 211 226

O ther c u rre n t in c o m e ............................................................................................................................ 20 19 21 24 27 27 32 40 43

N o n -re cu rrin g incom e, recoveries, e tc .......................................................................................... 66 91 142 114 106 113 105 75 177

Disposition

S alaries and w ages1............................................................................................................................... 113 120 134 142 149 159 168 177 189

D ivide nds and in te re s t on d e p o s its ................................................................................................ 812 897 1,073 1,148 1,334 1,482 1,654 1,809 2,087

O th e r c u rre n t e x p e n s e s ....................................................................................................................... 74 81 91 100 104 115 122 135 146

N o n -re cu rrin g expenses, losses, e tc .............................................................................................. 80 127 124 116 109 102 88 93 148

Incom e ta x e s ............................................................................................................................................. 10 12 14 16 18 23 26 29 37

A d d itio n s to capita l a c c o u n ts ............................................................................................................ 126 134 168 187 147 179 211 223 177

Percentage distribution

Total income...... ......................................................... ........ 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Sources

L o a n s............................................................................................................................................................ 67.5 68.1 67.9 71.0 73.3 75.8 78.1 80.8 78.8

U.S. G ove rn m e n t o b lig a tio n s ............................................................................................................. 11.7 10.7 9.5 8.9 8.4 7.5 6.8 6.0 5.1

O ther s e c u ritie s ....................................................................................................................................... 13.8 13.2 12.4 12.0 11.1 9.9 9.1 8.6 8.1

O ther c u rre n t in c o m e ............................................................................................................................ 1.6 1.4 1.3 1.4 1.5 1.3 1.4 1.6 1.6

N o n -re cu rrin g incom e, recoveries, e tc .......................................................................................... 5.4 6.6 8.9 6.7 5.7 5.5 4.6 3.0 6.4

Disposition

S alaries and w ages1............................................................................................................................... 9.3 8.7 8.3 0°

CO8.0 7.7 7.4 7.2 6.8

D ivide nds and in te re s t on d e p o s its ................................................................................................ 66.8 65.4 66.9 67.1 71.6 71.9 72.9 73.3 75.0

O ther c u rre n t e x p e n s e s ....................................................................................................................... 6.1 5.9 5.7 5.9 5.6 5.6 5.4 5.5 5.2

N o n -re cu rrin g expenses, e tc .............................................................................................................. 6.6 9.3 7.7 6.8 5.9 5.0 3.9 3.8 5.3

Incom e ta x e s ............................................................................................................................................. .8 .9 .9 1.0 1.0 1.1 1.1 1.2 1.3

A d d itio n s to ca p ita l a c c o u n ts ............................................................................................................ 10.4 9.8 10.5 10.9 7.9 8.7 9.3 9.0 6.4

1 Includes pension, hospitalization and other employee benefits and fees paid to trustees and committee members.

Note: Due to rounding differences, components may not add to totals.

INCOME OF INSURED BANKS 181

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES; 

DEPOSIT INSURANCE DISBURSEMENTS

Table 121. Number and deposits of banks closed because of financial difficulties, 

1934-1966

Table 122. Insured banks requiring disbursements by the Federal Deposit Insurance 

Corporation during 1966 

Table 123. Depositors, deposits, and disbursements in insured banks requiring disbursements by the Federal Deposit Insurance Corporation, 1934-1966 

Banks grouped by class of bank, year of deposit payoff or deposit

assumption, amount of deposits, and State

Table 124. Recoveries and losses by the Federal Deposit Insurance Corporation on 

principal disbursements for protection of depositors, 1934-1966

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Deposit insurance disbursements

Disbursem ents by the Federal Deposit Insurance Corporation to

protect depositors are m ade when the insured deposits of banks in

financial difficulties are paid off, or when the deposits of a failing

bank are assum ed by another insured bank with the financial aid of

the C orporation. In deposit payoff cases, the disbursem ent is the

am ount paid by the C orporation on insured deposits. In deposit

assum ption cases, the principal disbursem ent is the amount loaned

to failing banks, or the price paid for assets purchased from them ;

additional disbursem ents are m ade in those cases as advances for

protection of assets in process of liquidation and for liquidation

expenses.

Noninsured bank failure

One noninsured bank failed in 1966, the Intra Bank, Socieie

Anonym e Lebanaise, a branch of the Beirut bank, licensed in New

York State and located in N ew York City. It closed on O ctober 15,

1966, and on June 30, 1966 had deposits of $2,648,000.

For detailed data regarding noninsured banks which suspended

in the years 1934-1962, see the Annual Report for 1963, pp. 27-41.

For 1963-1965, see Table 121, this Report, and previous Reports

for respective years.

Sources of data

Insured banks: books of bank at date of closing; and books of

FD IC , D ecem ber 3 1 ,1 9 6 6 .

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 183

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
1934.

1935.

1936.

1937.

1938.

1939.

1940.

1941.

1942.

1943.

1944.

1945.

1946.

1947.

1948.

1949.

1950.

1951.

1952.

1953.

1954.

1955.

1956.

1957.

1958.

1959.

1960.

1961.

1962.

1963.

1964.

1965.

1966.

page

note

5

repoi

(payc

and 1

Table 121. NUMBER AND DEPOSITS OF BANKS CLOSED

BECAUSE OF FINANCIAL DIFFICULTIES, 1934-1966

Number

Total Noninsured 1

Insured

Total

Without

disbursements

by

FDIC2

With

disbursements

by

FDIC3

Deposits (in thousands of dollars)

Total Noninsured1

Insured

Total

Without

disbursements

by

FDIC2

With

disbursements

by

FDIC3

602

61

32

72

83

80

72

48

16

23

5

2

1 

2

6

3

9

5

5

4

5

4

5

3

3

9

3

2

9

3

2

131

52

6

3

7

7

12

5

2

3

471

9

26

69

76

73

60

43

14

20

5

2

1

1

5

3

5

4

2

3

4

2

5

2

2

4

3

1

5

1 

2

7

5

7

463

9

25

69

74

73

60

43

14

20

5

2

1

1

5

3

4

4

2

3

2

2

5

2

1

4

3

1

5

897,151

37,332

13,987

28,100

34,141

60.444

160,211

142,787

18,805

19,541

12,525

1,915

5,695

494

7,207

10,674

9,217

5,555

6,464

3,313

45,101

2,948

11,953

11,689

12,502

10,413

2,593

7,965

10,611

4,231

23.444

23,867

45,256

106,171

61,973

35,364

583

592

528

1,038

2,439

358

79

355

147

167

2,552

42

3,056

143

390

1,950

360

1,255

2,173

1,035

1,675

1,220

429

1,395

2,648

835,178

1,968

13,404

27,508

33,613

59,406

157,772

142,429

18,726

19,186

12,525

1,915

5,695

347

7,040

10,674

6,665

5,513

3,408

3,170

44,711

998

11,953

11,329

11,247

8,240

2,593

6,930

8,936

3,011

23,444

23,438

43,861

103,523

41,147

85

'328'

1,190

26,449

10,084

3,011

794,031

1,968

13,319

27,508

33,285

59,406

157,772

142,429

18,726

19,186

12,525

1,915

5,695

347

7,040

10,674

5,475

5,513

3,408

3,170

18,262

998

11,953

11,329

1,163

8,240

2,593

6,930

8,936

23 j 444

23,438

43,861

103,523

formation regarding each of these banks, see Table 22 in the Annual Report of the Federal Deposit Insurance Corporation for 1963, page 221 of the report for 1964,

the report for 1965, and page 183 of this report. One noninsured bank placed in receivership in 1934, with no deposits at time of closing, is omitted (see Table 22,

osits are unavailable for 7 banks.

'ormation regarding these cases, see Table 23 of the Annual Report for 1963.

formation regarding each bank, see the Annual Report for 1958, pp. 48-83 and pp. 98-127, and tables regarding deposit insurance disbursements in subsequent annual

osits are adjusted as of December 31,1966, and exclude deposits for three cases requiring disbursements by the Corporation: 1 bank in voluntary liquidation in 1937

no. 90); 1 noninsured bank in 1938 with insured deposits at date of suspension, its insurance status having been terminated prior to suspension (payoff case no. 162);

i-owned bank closed in 1941 by order of the Federal Government (payoff case no. 234).

184 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T a b l e 1 2 2 . INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1966

Case

n u m b e r

N am e and location Class of 

bank

N u m be r of 

a cco u n ts1

Date of clo sing or 

d e p o sit a ssum ption

FDIC 

d is b u rs e m e n t2 

(in tho u sa n d s)

Receiver o r liq u id a tin g agent 

o r assum in g bank

D eposit

p a yo ff

27 8 C itizens Bank, 

P o ttsville, A rkansa s

NM 1,012 Janu ary 24, 1966 $ 732 Federal D eposit 

Insurance C orporation

D eposit

a ssu m p tio n

115 Five P oints N a tional Bank, 

M iam i, Florida

N 3,072 Janu ary 12, 1966 1,217 Coral Way N ational Bank, 

M iam i, Florida

207 B la n ke t S tate Bank, 

B la n ke t, Texas

NM 1,556 Janu ary 31, 1966 8 1 8 First N ational Bank in Brow nwood, 

Brow nw ood, Texas

2 0 8 Saguache C o unty N ational Bank, 

S aguache, C olorado

N 712 M arch 17, 1966 472 The First N ational Bank of Center, 

C enter, C olorado

20 9 B ank o f G ray S u m m it, 

G ray S u m m it, M issouri

NM 3,6 3 0 A p ril 7, 1966 1,021 U nited Bank o f Union, 

U nion, M issouri

2 7 9 P u blic Bank, 

D e troit, M ichigan

NM 8 3 ,0 4 4 O ctober 12, 1966 10,000 Bank of the C om m onw ealth, 

D etroit, M ichigan

116 F irst State B ank o f Tuscola, 

Tuscola, Texas

NM 2 ,3 9 8 O ctober 17, 1966 811 First State B ank in Tuscola, 

Tuscola, Texas

Case

n u m b e r

A sse ts1

Total

Liabilities and capital a cco u n ts1

Cash and 

d ue fro m 

banks

U. S. Gove rn m e n t 

o b lig a tio n s

O ther

securitie s

Loans,

discounts

and

o ve rd ra fts

B anking 

house, 

fu rn itu re 

and fix tu re s

O ther

real

estate

O ther

a sse ts3 D eposits

O ther

lia b ilitie s

Capital

stock

O ther

capital

accounts

D eposit

payo ff

2 7 8 254,331 96,000 16,000 377,930 450 87,664 832,375 774,426 25,000 32,949

D e posit

a ssu m p tio n

l i 5 312,921 628,649 657,381 1,005,856 71,569 26,665 2,703,041 2,966,731 10,903 400,000 -674,593

207 135,023 130,300 15,000 955,114 19,629 2 2,029 1,257,097 1,182,865 25,000 49,232

2 0 8 71,753 165,837 28,285 236,235 10,209 45 512,364 725,400 50,000 -263,036

2 09 434,641 323,260 71,709 1,064,312 26,204 14,736 1,934,862 1,832,485 6,746 50,000 45,631

2 7 9 7,879,024 17,183,595 1,927,079 78,123,201 3,857,964 6,812 1,099,297 110,076,972 92,959,930 16,180,926 4,620,000 -3,683,884

116 168,564 543,482 2,978 2,513,151 69,810 32,022 3,330,007 3,080,829 56,845 62,500 129,833

1 Figures as determined by FDIC agents after adjustment of books of the bank immediately following its closing. In deposit payoff case, number of accounts refers to number of depositors.

2 Includes disbursements made to December 31,1966, plus additional disbursements estimated to be required in these cases.

3 Includes in case number 278 a shortage account of $75,603.

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 185

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 123. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL

DEPOSIT INSURANCE CORPORATION, 1934-1966

BANKS GROUPED BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF OR DEPOSIT ASSUMPTION, AMOUNT OF DEPOSITS, AND STATE

Classification

N um ber of banks Number of depositors1 Deposits1 

(in thousands of dollars)

Disbursem ents by FDIC1 

(in thousands of dollars)

Total

Payoff

cases

Assumption

cases

Total

Payoff

cases

Assum ption

cases

Total

Payoff

cases

Assum ption

cases

Principal disbursem ents

Advances and 

expenses2

Total Payoff

cases3

Assum ption

cases4

Payoff

cases5

Assum ption

cases6

All banks........................................ 466 276 190 1,627,868 497,269 1,130,599 805,366 235,118 570,248 368,572 155,695 212,877 2,678 47,915

Class of bank

National banks.................................. 84 29 55 331,105 82,645 248,460 180,182 76,779 103,403 75,617 35,308 40,309 705 6,331

State banks m em bers F. R. S----- 24 8 16 372,545 86,939 285,606 190,536 29,418 161,119 103,273 23,002 80,271 151 19,273

Banks not m em bers F. R. S......... 358 239 119 924,218 327,685 596,533 434,648 128,922 305,726 189,681 97,384 92,297 1,823 22,313

Year7

1934 .......................................... 9 9 15,767 15,767 1,968 1,968 941 941 43

1 93 5..................................................... 25 24 1 44,655 32,331 12,324 13,319 9,091 4,229 8,891 6,026 2,865 108 272

193 6..................................................... 69 42 27 89,018 43,225 45,793 27,508 11,241 16,267 14,781 8,056 6,725 67 934

193 7..................................................... 75 50 25 130,387 74,148 56,239 33,349 14,960 18,389 19,161 12,045 7,116 103 905

1 93 8..................................................... 74 50 24 203,961 44,288 159,673 59,684 10,296 49,388 30,479 9,092 21,387 93 4,902

193 9..................................................... 60 32 28 392,718 90,169 302,549 157,772 32,738 125,034 67,770 26,196 41,574 162 17,603

1 94 0..................................................... 43 19 24 256,361 20,667 235,694 142,429 5,657 136,773 74,134 4,895 69,239 89 17,237

19 4 1 ..................................................... 15 8 7 73,005 38,594 34,411 29,718 14,730 14,987 23,880 12,278 11,602 50 1,479

19 4 2 ..................................................... 20 6 14 60,688 5,717 54,971 19,186 1,816 17,369 10,825 1,612 9,213 38 1,076

19 4 3 ..................................................... 5 4 1 27,371 16,917 10,454 12,525 6,637 5,888 7,172 5,500 1,672 53 72

1 94 4..................................................... 2 1 1 5,487 899 4,588 1,915 456 1,459 1,503 404 1,099 9 37

1945 ............................. 1 1 12,483 12,483 5,695 5,695 1,768 1,768 96

1946 ................... 1 1 1,383 1,383 347 347 265 265 11

1947 5 5 10,637 10,637 7,040 7,040 1,724 1,724 362

1948 3 3 18,540 18,540 10,674 10,674 2,990 2,990 200

1949 4 4 5,671 5,671 5,475 5,475 2,552 2,552 166

1950 4 4 6,366 6,366 5,513 5,513 3,986 3,986 524

1951 2 2 5,276 5,276 3,408 3,408 1,885 1,885 127

1952 3 3 6,752 6,752 3,170 3,170 1,369 1,369 195

1953 2 2 24,469 24,469 18,262 18,262 5,017 5,017 428

1954 2 2 1,811 1,811 998 998 913 913 145

1 9 5 5 ..................................................... 5 4 1 17,790 8,080 9,710 11,953 6,503 5,450 6,784 4,438 2,346 106 665

1 95 6..................................................... 2 1 1 15,197 5,465 9,732 11,329 4,702 6,628 3,333 2,795 538 87 51

1957 1 1 2,338 2,338 1,163 1,163 1,031 1,031 20

1 9 5 8 ..................................................... 4 3 1 9,587 4,380 5,207 8,240 4,156 4,084 3,026 2,796 230 38 31

1959 3 3 3,073 3,073 2,593 2,593 1,835 1,835 51

I9 6 0 1 1 11,171 11,171 6,930 6,930 4,765 4,765 82

1961 5 5 8,301 8,301 8,936 8,936 6,208 6,208 154

1963 2 2 36,430 36,430 23,444 23,444 19,242 19,242 267

1964 7 7 19,934 19,934 23,438 23,438 13,761 13,761 560

1965 .............................. 5 3 2 15,817 14,363 1,454 43,861 42,889 972 11,508 11,045 463 393 89

196 6..................................................... 7 1 6 95,424 1,012 94,412 103,523 774 102,749 15,074 735 14,339 106 308

Banks with deposits of—

Less than $1 0 0 ,0 0 0 ........................ 107 83 24 38,347 29,695 8,652 6,418 4,947 1,471 5,000 4,309 691 88 154

$100,000 to $ 2 5 0 ,0 0 0 .................. 109 86 23 83,370 65,512 17,858 17,759 13,920 3,839 12,906 11,554 1,352 209 173

$250,000 to $ 5 0 0 ,0 0 0 .................. 61 37 24 91,218 57,287 33,931 21,881 12,921 8,961 14,993 10,550 4,443 162 607

$500,000 to $ 1 ,0 0 0 ,0 0 0 ............... 71 34 37 161,306 74,253 87,053 55,248 27,211 28,037 36,069 20,361 15,708 357 2,251

$1,000,000 to $ 2 ,0 0 0 ,0 0 0 ........... 52 17 35 211,161 66,768 144,393 74,044 22,210 51,834 41,112 17,094 24,018 353 3,473

$2,000,000 to $ 5 ,0 0 0 ,0 0 0 ........... 38 11 27 253,528 69,419 184,109 118,775 36,590 82,185 61,434 24,778 36,656 361 5,637

$5,000,000 to $10,000,000 16 4 12 222,948 32,665 190,283 105,189 27,715 77,474 44,102 17,818 26,284 425 5,491

$10,000,000 to $ 2 5 ,0 0 0 ,0 0 0 .... 6 3 3 198,137 89,189 108,948 113,498 49,429 64,068 59,514 39,444 20,070 303 5,404

$25,000,000 to $ 5 0 ,0 0 0 ,0 0 0 .... 5 1 4 284,809 12,481 272,328 199,594 40,176 159,418 83,439 9,786 73,653 338 24,723

$50,000,000 to $ 1 0 0 ,0 0 0 ,0 0 0 ... 1 1 83,044 83,044 92,960 92,960 10,000 10,000 81

186 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
State

Alabam a.............

A rkansas............

C alifornia............

C olorado.............

C onnecticut.......

Florida.................

G eorgia...............

Idaho...................

Illinois..................

India na................

Iowa.....................

Kansas................

K entucky............

Louisiana............

M aine...................

M aryland............

M assachusetts..

M ichigan.............

M innesota..........

M ississippi.........

M issouri..............

M ontana.............

N ebraska...........

New Ham pshire 

New Jersey........

New Y o rk ............

North Carolina. . 

North D akota. . .

O hio.....................

O klahom a...........

Oregon................

Pennsylvania. . . 

South C a ro lin a .. 

South D akota.. . 

Tennessee.........

Texas...................

V e rm ont..............

Virginia ................

W ashington........

W est'V irginia....

W isconsin...........

W yom ing.............

7,905

5,446

21,059

2,094

5,379

4,714

9,410

2,451

79,721

30,006

16,055

5,145

36,139

6,087

9,710

22,567

9,046

115,863

2.650

1.651

41,277

I,500 

6,069 

1,780

522,563

269,621

10,408

14,103

13,751

25,070

3,439

166,894

1,848

12,515

12,358

42,167

II,057 

35,715

4,179

8,346

26,898

3,212

794

4,541

17,890

1,382

5,379

448

8,797

2,451

41,802

12,549

4,066

2,254

18,490

6,087

6,643

2,084

2.650

1.651

29,478

849

6,069

103,797

28,440

3,677

6,760

7,585

20,149

1,230

43,828

403

11,412

9,993

35,231

8,687

12,638

8,346

18,739

7,111

905

3,169

712

4,266

613

37,919

17,457

11,989

2,891

17,649

9,710

15,924

9,046

113,779

11,799

651

1,780

418,766

241,181

6,731

7,343

6,166

4,921

2,209

123,066

1,445

1,103

2,365

6,936

2,370

23,077

4,179

8,159

3,212

2,285 100 2,185 1,089 94 995 1 91

2,538 1,942 596 1,720 1,576 144 33 48

47,298 46,220 1,078 13,893 13,032 861 433 138

2,987 2,262 725 1,410 938 472 38 42

1,526 1,526 1,242 1,242 8

3,457 217 3,240 1,517 203 1,314 3 106

1,959 1,870 89 1,620 1,551 69 33 33

1,894 1,894 1,493 1,493 29

50.765 25,081 25,684 28,466 20,484 7,982 296 791

13,593 3,932 9,662 6,197 3,096 3,101 39 384

9,401 4,383 5,018 3,875 2,804 1,071 46 113

1,234 539 694 974 482 492 5 72

8,888 3,953 4,934 5,455 3,329 2,126 44 201

1,652 1,652 668 668 10

5,450 5,450 2,346 2,346 665

4,566 828 3,738 3,109 735 2,374 9 371

3,019 3,019 1,564 1,564 1 030

107,727 1,394 106,332 17,462 1,312 16,150 124 760

818 818 640 640 17

334 334 257 257 5

11,107 7,240 3,867 7,678 6,011 1,667 99 174

1,095 215 880 639 186 453 6 21

8,145 8,145 5,008 5,008 46

296 296 117 117 8

194,630 33,128. 161,502 82,125 26,468 55,657 161 20,154

145,439 13,286 132,153 67,872 10,836 57,036 32 10,847

3,266 1,421 1,845 2,387 1,156 1,231 23 179

3,830 1,552 2,278 2,656 1,397 1,259 24 203

7,223 2,345 4,877 2,098 1,610 488 7 44

13,765 11,053 2,712 9,255 7,944 1,311 178 104

2,670 1,368 1,302 1,948 986 962 11 81

75,756 14,340 61,416 51,292 10,133 41,159 75 9,524

849 136 714 274 136 138 10

2,987 2,862 126 2,411 2,388 23 26 9

1,942 1,620 322 1,278 1,164 114 28 25

24,384 18,461 5,922 15,030 12,645 2,385 424 209

3,725 3,375 350 3,445 3,259 186 21 22

17,778 7,652 10,127 8,275 3,879 4,396 278 505

1,538 1,538 935 935 512

2,006 2,006 1,458 1,458 11

9,512 5,966 3,545 7,188 5,096 2,092 54 420

2,033 2,033 202 202 19

1 Adjusted to December 31, 1966. In assumption cases, number of depositors refers to number of deposit accounts.

2 Excludes $295 thousand of non-recoverable insurance expenses in cases which were resolved without payment of claims or a disbursement to facilitate assumption of deposits by another insured bank, and 

other expenses of field liquidation employees not chargeable to liquidation activities.

3 Includes estimated additional disbursements in active cases.

4 Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.

5 These disbursements are not recoverable by the Corporation; they consist almost wholly of field payoff expenses.

6 Includes advances to protect assets and liquidation expenses of $47,555 thousand, all of which have been fully recovered by the Corporation, and $360 thousand of non-recoverable expenses.

7 No case in 1962 required disbursements. Disbursement totals for each year relate to cases occurring during that year, including disbursements made in subsequent years.

Note: Due to rounding differences, components may not add to totals.

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 187

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 124. RECOVERIES AND LOSSES BY THE FEDERAL DEPOSIT INSURANCE CORPORATION ON PRINCIPAL DISBURSEMENTS 

FOR PROTECTION OF DEPOSITORS, 1934-1966

(Am ounts in thousands of dollars)

L iq uid ation 

s ta tu s and 

year o f deposit payo ff 

or d e p o sit 

a ssu m p tio n

All cases

N u m b e r

of

banks

P rin cipal

d is b u rs e ­

m e n ts

Recoveries 

to Dec. 

31, 1966

E stim ated

a d d itio n a l

recoveries

Losses1

Deposit payo ff cases

N um ber

of

banks

P rincipal

disbursem e n ts 2

Recoveries 

to Dec. 

31, 1966

E stim ated

a d d itio n a l

recoveries

Losse s1

D eposit assum ption cases

N u m be r

of

banks

P rincipal

disb u rse ­

m e n ts 3

Recoveries 

to Dec. 

3 1 ,1 9 6 6

E stim ated

a d d itio n a l

recoveries

Losse s1

Total..........

Status

A c tiv e ..........

T e rm in a te d 

Year 4 193 4 193 5 193 6 193 7 193 8 

193 9 194 0 1941. . .. 194 2 194 3 

194 4 1945. . .. 1946. ... 1947 1948. ...

1949. ... 1950. ... 195 1 195 2 195 3 

1954. ... 1955.. .. 1956.... 1957.... 1958...

1959.. .. 1960... 1961... . 1963.... 1964.. ..

1965... . 1966 

466

36

430

9

25

69

75

74

60

43

15

20

5

2

1

1

5

3

4

4

2

3 

2

2

5 

2

1

4

3

1

5 

2

7

5

7

368,572

119,473

249,099

941

8,891

14,781

19,161

30,479

67,770

74,134

23,880

10,825

7,172

1,503

1,768

265

1,724

2,990

2,552

3,986

1,885

1,369

5,017

913

6,784

3,333

1,031

3,026

1,835

4,765

6,208

19,242

13,761

11,508

15,074

306,692

83,368

223,324

734

6,193

12,325

15,610

28,055

60,618

70,241

23,290

10,136

7,048

1,462

1,768

265

1,631

2,349

2,183

2,601

1,792

577

5,017

654

6,554

3,038

1,031

2,998

1,722

4,765

4,571

15,775

9,198

551

1,939

16,656

16,656

125

130

2,337

2,316

3,231

8,350

45,224

19,449

25,775

207

2,696

2,455

3,549

2,425

7,153

3,767

591

688

123

72

641

369

1,385

3

792

258

230

250

105

1,508 

1,130 

2 247

7,726

4,785

276

20

256

9

24

42

50

50

32

19

8

6

4

155,695

58,469

97,226

941

6,026

8,056

12,045

9,092

26,196

4,895

12,278

1,612

5,500

120,230

37,902

82,328

734

4,274

6,595

9,520

7,908

20,399

4,313

12,065

1,320

5,376

363

4,438

2.795 

1,031

2.796

1,835

4,765

6,208

19,242

13,761

11,045

735

4,208

2,500

1,031

2,768

1,722

4,765

4,571

15,775

9,198

348

476

8,282

130

2,337

2,316

3,217

229

27,183

12,285

14,898

207

1,751

1,460

2,524

1,184

5,798 

• 582 

213 

292 

123

40

230

250

28

105

1,508

1,130

2,247

7,480

190

16

174

212,877

61,004

151,873

186,462

45,466

140,996

2,865

6,725

7,116

21,387

41,574

69,239

11,602

9,213

1,672

1,099

1,768

265

1,724

2,990

2,552

3,986

1,885

1,369

5,017

913

2,346

538

1,919

5,730

6,090

20,147

40,219

65,928

11,225

8,816

1,672

1,099

1,768

265

1,631

2,349

2,183

2,601

1,792

577

5,017

654

2,346

538

230 230

463

14,339

203

1,463

8,374

8,374

125

14

8,121

18,041

7,164

10,877

945

995

1,025

1,241

1,355

3,185

378

396

72

641

369

1,385

3

792

258

246

4,755

1 Includes estimated losses in active cases. Not adjusted for interest or allowable return, which was collected in some cases in which the disbursement was fully recovered.

2 Includes estimated additional disbursements in active cases.

3 Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.

4 No case in 1962 required disbursements. Note: Due to rounding differences, components may not add to totals.

188 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
INDEX

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
191

Absorptions:

Of insured banks requiring disbursements by FDIC. See

Banks in financial difficulties.

Of operating banks, 1966 _________________________________________ 15-17, 128

Of operating banks approved by FDIC, 1966 _____________________ 15-17, 35-67

Regulation o f ____________________________________________________15-17, 71-74

Advertising for funds by insured b a n k s ___________________________________ 27, 120

Admission of banks to insurance:

Applications for, 1966 _________________________________________________ 15

Number of banks admitted, by class of bank, 1966 _____________________ 129

Applications from banks ____________________________________________________15-18

Areas outside continental United States, banks and branches located in:

Average assets and liabilities, insured commercial banks, 1966 _______152-153

Earnings, expenses, profits, and dividends, 1966 _____________________ 168-169

Number, December 31, 1966 ________________________________________ 132, 139

Assessments for deposit insurance _________________________________________ 29-33

Assets, liabilities, and capital of banks (see also Deposits):

All banks, June 30, and December 31, 1966 __________________________142-145

Commercial banks, June 30, and December 31, 1966 ________________ 142-145

Insured commercial banks:

Amount, December call dates, 1962-1966 _______________________ 146-149

Amount, December 31, 1966, by class of b a n k _____________________ 150

Amount, December 31, 1966, by deposit size of b a n k ______________ 151

Average for 1966, by S ta te _____________________________________ 152-153

Distribution of banks with given ratios of selected items to

total assets, by size of bank, December 31, 1966 ____________ 154-155

Insured mutual savings banks:

Amount, and percentage distributions, December call dates,

1962-1966 _____________________________________________________ 146-149

Major categories, average, 1958-1966 ____________________________ 179

Mutual savings banks:

Banks grouped by insurance status, June 30, and December

31, 1966 ______________________________________________________ 142-145

Sources of data _______________________________________________ 141, 157

Assets and liabilities of FDIC _______________________________________________ 29-30

Assets purchased by FDIC from banks in financial difficulties ____ 11-14, 30, 188

Assumption of deposits of insured banks with financial aid of FDIC

(see also Banks in financial difficulties) ________________ 11-14, 183, 185-188

Attorney General of the United States, summary reports on absorptions____ 35-67

Audit of F D IC ______________________________________________________________ 32, 34

Bad-debt reserves. See Valuation reserves.

Bank Holding Company Act of 1956, amendments t o ___________________ 24, 74-80

Bank Merger Act of 1960, amendments t o ____________________________23-24, 71-74

INDEX Page

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Bank Supervision. See Supervision of banks; Examination of 

insured banks.

Banking data, classification of:

Assets and liabilities of banks _________________________________________ 141

Deposit insurance disbursements _______________________________ _______ 183

Income of insured banks________________________________________________ 157

Number of banks and branches _____________________________________ 126-127

Banking offices, number of. See Number of banks and branches.

Banks, applications from, acted on by F D IC _______________________________ 15-18

Banks in financial difficulties:

Insured banks requiring disbursements by FDIC:

Deposit size o f _____________________________________________________ 186

Deposits protected, 1934-1966 _____________________12-13, 184, 186-187

Disbursements by FDIC, 1934-1966 ______________________ 10-14, 183-188

Loans made and assets purchased by F D IC _______________________ 11-13

Location by State, 1934-1966 ______________________________________ 187

Losses incurred by F D IC _____________________________________ 13-14, 188

Losses incurred by depositors ____________________________________ 12-13

Name and location of, 1966 _____________________________________ 11, 185

Number of, 1934-1966 ______________________________ 12-13, 184, 186-187

Number of deposit accounts, 1934-1966 _____________________12, 186-187

Recoveries by FDIC on assets acquired, 1934-1966 __________ 13-14, 188

Noninsured banks:

Number and deposits of commercial banks closed, 1934-1966______ 184

Suspensions, 1966 ______________________________________________128, 183

Banks, number of. See Number of banks and branches.

Board of Directors of FDIC. See Federal Deposit Insurance Corporation.

Board of Governors of the Federal Reserve System. See Federal Reserve 

authorities.

Branches (see also Number of banks and branches):

Establishment approved by FDIC, 1966 _________________________________ 15

Examination of, 1965 and 1966 ________________________________________ 19

Increase, branches of all banks, 1966 _______________________________ 129-131

Call reports. See Assets, liabilities, and capital of banks;

Reports from banks.

Capital of banks. See Assets, liabilities, and capital of banks; Banks in 

financial difficulties; Income of insured commercial banks; Examination 

of insured banks.

Cease-and-desist authority _____________________________________ 20, 25-26, 97-105

Certificates of deposit (see also Deposits) ____________________________ 9-10, 80-82

Charge-offs by banks. See income of insured commercial banks;

Income of insured mutual savings banks; Valuation reserves.

Class of bank, banking data presented by:

A bsorptions _______________________________________________________ 16-17, 128

192 FEDERAL DEPOSIT INSURANCE CORPORATION

• Page

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
INDEX 193

Page

Class of bank, banking data presented by: — Continued

Admissions to and terminations of insurance _______________________ 128-129

Assets and liabilities of insured commercial banks ____________________ 150

Income of insured commercial banks, 1966 ________________________ 162-163

Insured banks requiring disbursements by FDIC, 1934-1966 ____________ 186

Number of banks and banking offices, 1966 _________4, 18, 128-129, 132-139

Classification of banks ____________________________________________________126-127

Closed banks. See Banks in financial difficulties.

Commercial banks. See Assets, liabilities, and capital of banks; Deposits;

Income of Insured commercial banks; Number of banks and branches. 

Comptroller of the Currency _______________IV-V, 18-19, 25, 27-28, 71-74, 97-105

Conferences with supervisors of State b a n ks _______________________________ 23

Consolidations. See Absorptions.

Control of banks, changes in ________________________________________21-24, 71-80

Credit, bank. See also Assets, liabilities, and capital of b a n k s ______________ 5-10

Demand deposits. See Assets, liabilities, and capital of banks; Deposits.

Deposit insurance coverage _________________________________3-5, 26, 34, 105-106

Deposit insurance national banks __________________________________________ 11-12

Deposits, insured by FDIC:

Definition of time and savings deposits ________________________ 106, 117-120

Estimated insured deposits, December 31, 1934-1966 _________________ 34

Increase in maximum per depositor ____________________________ 4-5, 26, 105

Multiple maturity _________________________________________________ 9, 114-115

Deposits of: (See also Assets, liabilities, and capital of banks):

All banks:

By insurance status and type of bank, and type of account,

December 31, 1966 ________________________________________________ 145

By insurance status and type of bank, and type of account,

June 30, 1966 ______________________________________________________ 143

Banks closed because of financial difficulties, 1934-1966 ____________ 183-187

Insured banks, December call dates, 1934-1966 _______________________ 34

Insured commercial banks:

Average demand and time deposits, 1966, by S ta te ________________ 152-153

Average demand and time deposits, 1958-1966 ______________________ 159

By class of bank, December 31, 1966 _________________________________ 150

By deposit size of bank, December 31, 1966 __________________________ 151

December call dates, 1962-1966 _____________________________________ 148

Insured mutual savings banks:

Average demand and time deposits, 1958-1966 ______________________ 179

December call dates, 1962-1966 _____________________________________ 148

Sources of data concerning ___________________________________________ 141

Deposits, number of insured commercial banks with given ratios of 

demand to total de po sits _________________________________________________ 155

Directors of FDIC. See Federal Deposit Insurance Corporation.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
194 FEDERAL DEPOSIT INSURANCE CORPORATION

Page

Disbursements, See Banks in financial difficulties.

Dividends:

To depositors in insured mutual savings b a n k s ______________________ 178-180

To stockholders of insured commercial banks. See Income of 

insured commercial banks.

Earnings of banks. See Income of insured commercial banks; Income 

of insured mutual savings banks.

Economic and banking developments in 1966 ______________________________ 5-10

Employees:

FD IC __________________________________________ ____ 26, 28-29,106-114

Insured commercial banks:

Number and compensation, 1958-1966 ____________________________ 158-159

Number and compensation, by class of bank, by size of bank,

and by State, 1966 ___________________________162-163, 164-165, 168-177

Insured mutual savings banks, number and com pensation___________ 178-179

Examination of insured banks:

Banks examined by FDIC, 1966 _______________________________________18-20

District offices and supervising exam iners______________________________ VI

Expenses of banks. See Income of insured commercial banks;

Income of insured mutual savings banks.

Expenses of FDIC ___________________________________________________________29-32

Failures. See Banks in financial difficulties.

Federal bank supervision __________________________________________ 15-27, 71-106

Federal Deposit Insurance Corporation (FDIC):

Actions on applications ________________________________________________ 15-18

Advertising for funds by insured banks ______________________________ 27, 120

Assessments on insured b a n k s _________________________________________ 29-33

Assets __________________________________________________________________29-31

Audit _____________________________ ____________________________________ 32, 34

Banks examined by, and submitting reports to ________________________ 18-23

Borrowing p o w e r_______________________________________________________ 29

Capital s to c k ____________________________________________________________ 30n

Cease-and-desist authority _______________________________ 20, 25-26, 97-105

Coverage of deposit insurance, banks participating ________3-5, 128, 132-139

Deposit insurance fund (surplus) ______________________________________ 29-34

Directors (members of the Board) _____________________________________ V, 28

Disbursements for protection of depositors __________________ 10-14, 183-188

Districts _________________________________________________________________ VI

Divisions ______________________________________________________________ IV, 28

Em ployees________________________________________________ 26, 28-29, 106-114

Examination of b a n ks_______________________________________________ VI, 18-20

Financial statements, 1966 ______________________________________________30-32

Income and expenses, 1933-1966 _______________________________________31-33

Insured banks requiring disbursements by. See Banks in 

financial difficulties.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
INDEX 195

Page

Federal Deposit Insurance Corporation (FDIC): — Continued

Liabilities ______________________________________________________________ 20-30

Loans to, and purchase of assets from, insured b a n ks _________ 183, 186-187

Losses incurred, 1934-1966 _______________________________________13-14, 188

Methods of protecting depositors _________________________________10-14, 183

Organization and s ta ff___________________________________________ IV-VI, 28-29

Payments to insured depositors ______________________________ 10-14, 186-188

Recoveries________________________________________________________ 12-14, 188

Regulation of interest rates __________________ 7, 9-10, 26-27, 80-82, 114-120

Reports from banks ___________________________________________________ 20-23

Reserve for losses on assets acq uired__________________________________ 30-31

Rules and regulations ________________________________________26-27, 106-120

Sources and uses of fu n d s ______________________________________________ 32

Standards of conduct for em ployees_____________________________ 26, 106-114

Supervisory activities __________________________________________________ 15-27

Federal Home Loan Bank Board _________________________________10, 24-27, 82-97

Federal Reserve authorities______________6, 9-10, 18-19, 23-25, 27, 71-82, 97-105

Federal Reserve member banks. See Class of bank, banking data 

presented by.

Federal Savings and Loan Insurance Corporation ___________________ 26, 105-106

General Accounting O ffic e __________________________________________________ 34

Income of F D IC ____________________________________ __ _____________________ 31-33

Income of insured commercial banks:

Amounts of principal components:

Annually, 1958-1966 ________________________________________158-159, 161

By class of bank, 1966 __________________________________________ 162-163

By size of bank, 1966 ______ __ __________ ________________ ___ ....164-165

By State, 1966 __________________________ ___ ____________ ________168-177

Classification of income d a ta _______________ __ ________________________ 157

Ratios of income items:

Annually, 1958-1966 __________________________ __ _________________ 160

By size of bank, 1966 ________ __ _____________ _____ ____________ 166-167

Sources of d a ta _______________________________________ __ ______________ 157

Income of insured mutual savings banks:

Amounts of principal components, 1958-1966 __________________ 178-179, 181

Ratios of income and expense items, 1958-1966 _______________________ 180

Sources of data _______________________________________________ ___ ____ 157

Insolvent banks. See Banks in financial difficulties.

Insurance of bank obligations ___________________________________ 3-5, 26, 34, 105

Insurance status, banks classified by:

Assets and liabilities of, June 30 and December 31, 1966 ____________ 142-145

Changes in number of, 1966__________________________________________ 128-129

Deposits of, June 30 and December 31, 1966 _______________________ 143, 145

Number of, December 31, 1966 ________________________ 4, 128-129, 132-139

Percentage of banks insured, by State, December 31, 1966 __________ 132-139

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
196 FEDERAL DEPOSIT INSURANCE CORPORATION

Page

Insured banks. See Assets, liabilities, and capital of banks; Banks in financial difficulties; Deposits; Income of insured commercial banks; Income of 

insured mutual savings banks; Number of banks and branches.

Insured commercial banks not members of the Federal Reserve System.

See Class of bank, banking data presented by.

Insured deposits. See Banks in financial difficulties; Deposit insurance 

coverage.

Insured State banks members of the Federal Reserve System. See Class of 

bank, banking data presented by.

Interest rates paid by insured banks:

Authority to regulate amended ____________________________9-10, 24-25, 80-82

Maximum rates revised ________________________________________9-10, 115-116

Mutual savings banks in Alaska _____________________________________ 27, 117

Survey of, by FDIC ___________________________________________________ 22-23

Investments. See Assets, liabilities, and capital of banks; Assets and liabilities of FDIC; Banks in financial difficulties.

Legislation relating to deposit insurance and banking:

Federal, enacted in 1966 ______________________________________ 23-26, 71-106

State, enacted in 1966 _______________________________________________121-123

Loans. See Assets, liabilities, and capital of banks; Banks in financial difficulties.

Losses:

Of banks. See income of insured commercial banks; Income of insured 

mutual savings banks.

Of FDIC __________________________________________ ___ 13-14, 188

On loans, reserves for. See Valuation reserves.

Provision for, in insured banks, 1958-1966 _________________ 158-159, 178-179

Mergers. See Absorptions.

Methods of tabulating banking data. See Banking data, classification of. 

Mutual savings banks. See Assets, liabilities, and capital of banks; Deposits;

Income of insured mutual savings banks; Number of banks and branches. 

National banks. See Class of bank, banking data presented by.

New banks, 1966 ________________________________________________________ 128-129

Noninsured banks (see also Absorptions; Admission of banks to insurance; 

Assets, liabilities, and capital of banks; Banks in financial difficulties; 

Classification of banks; Class of bank, banking data presented by; Deposits; Number of banks and branches; Reports from banks) ____________ 4

Number of banks and branches:

Banks:

By insurance status, type of bank, number of branches, and State,

December 31, 1966 _____________________________________

By insurance status and type of bank, December 31, 1966 

Changes during 1966 _____________________________________

.132-139 

...4, 128 

128

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
INDEX 197

Page

Num ber of banks and branches: — Continued

Branches:

By insurance status, type of bank, and State, D ecem ber 31,

1966 ____________________________________________________________ 132-139

Changes during 1966 ________________________________________________ 129

Com m ercial banks and branches, D ecem ber 31, 1965 and 1966,

by State ________________________________________________________ 130-131

Insured com m ercial banks:

Decem ber 31, 1958-1966 _________________________________________ 159-160

D ecem ber 31, 1966, by class of bank and deposit size of b a n k __163-165

D ecem ber 31, 1966, by State ___________________ 169, 171, 173, 175, 177

Distributed by capital ratios and distribution of assets and deposits,

D ecem ber 31, 1966 _____________________________________________ 154-155

Insured mutual savings banks, Decem ber 31, 1966 ___________________ 179-180

Mutual savings banks, by State, D ecem ber 31, 1966 _________________132-139

Noninsured banks, by State, D ecem ber 31, 1966 ______________________132-139

Unit banks, by insurance status and State, D ecem ber 31, 1966 _______132-139

Obligations of banks. See Assets, liabilities, and capital of banks; Deposits.

Officers of insured banks. See Em ployees.

Officials of FD IC _______________________________________________________________V, 28

O perating banks. See Num ber of banks and branches.

Paym ents to depositors in closed insured banks. See Banks in financial

difficulties.

Personnel. See Employees.

Possesions, banks and branches located in. See A reas outside continental

United States, banks and branches located in.

Protection of depositors. See Banks in financial difficulties; Deposit insurance coverage.

Receivership, insured banks placed in. See Banks in financial difficulties.

R ecoveries:

By banks on assets charged off. See Income of insured com m ercial

banks; Incom e of insured mutual savings banks.

By FD IC on disbursem ents. See Banks in financial difficulties.

Reports from banks ________________________________________________20-23, 141, 157

Reserves:

Of FD IC , for losses on assets a c q u ire d __________________________________ 30

Of insured banks for losses on assets. See Valuation reserves.

With Federal Reserve Banks. See Assets, liabilities, and capital of banks.

Salaries and wages:

FD IC ______________________________________________________________________ 31

Insured banks. See income of insured com m ercial banks; Incom e of

insured mutual savings banks.

Savings and loan associations _______________________________________ 10, 25, 82-97

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
198 FEDERAL DEPOSIT INSURANCE CORPORATION

Page

Securities. See Assets, liabilities, and capital of banks; Assets and liabilities of FDIC; Banks in financial difficulties.

Securities, registration and reporting of b a n k _______________________________ 20-21

Size of bank, data for banks classified by amount of deposits:

Assets and liabilities, insured commercial banks, 1966 ________________ 151

Banks requiring disbursements by FDIC, 1934-1966 ____________________ 186

Disbursements for protection of depositors, 1934-1966 ________________ 186

Income data of insured commercial banks, 1966 _____________________164-165

Income ratios of insured commercial banks, 1966 __________________ 166-167

Number of employees of insured commercial banks, 1966 ____________ 165

Number of insured commercial banks, 1966 ________________________ 165-167

Number of insured commercial banks, grouped by ratios of selected

items to assets and deposits, December 31, 1966 _________________ 154-155

Standards of conduct for FDIC em ployees____________________________26, 106-114

State, banking data classified by:

Assets and liabilities of insured commercial banks, average, 1966 ___152-153

Disbursements, deposits, and depositors in insured banks requiring disbursements by FDIC, 1934-1966 ____ ______________________________ 187

Income of insured commercial banks, 1966 _____________ ____________168-177

Number of banks and branches, by class of bank and type of office,

December 31, 1966 _____ __ _________________ ___ _________________132-139

Percentage of banks insured, December 31, 1966 __________________ 132-139

State banking legislation enacted in 1966 _________ ______ _______________..121-123

State banks. See Class of bank, banking data presented by.

Stockholders of banks, net profits available for. See Income of insured

com m ercial banks.

Supervision of banks (see also Exam ination of insured banks):

By FDIC _______ _____________ ___________ ___________ ______ _______ _____VI, 15-27

Federal legislation __________ ____ _____ __________________ _______ 20-26, 71-106

State legislation, 1966 .................................... ............................................................. 121-123

Suspensions. See Banks in financial difficulties.

Taxes paid by insured banks. See Incom e of insured com m ercial banks;

Incom e of insured mutual savings banks.

Term inations of insurance for unsafe and unsound p ra c tic e s ............................... 20-21

Tim e and savings deposits. See also Deposits ............................. ...7-10, 24-25, 80-82

Unit banks, by insurance status and State, D ecem ber 31, 1966 ......... ......... 132-139

Unsafe and unsound banking p ra c tic e s ..............................................20-21, 25-26, 82-105

Valuation reserves (see also Assets, liabilities, and capital of banks):

Amounts held, June 30 and D ecem ber 31, 1966 ____________ ___ ____142, 144

Amounts held. D ecem ber call dates, 1958-1966 ____________158-159, 178-179

Violations of law or regulations, banks charged w ith _________ 20-21, 25-26, 97-105

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis