ANNUAL REPORT OF THE

FEDERAL DEPOSIT INSURANCE CORPORATION

1965

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Federal Reserve Bank of St. Louis
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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., September 22,1966

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 annual report. Part One of the report, separately submitted earlier in the year, is included in this volume.

Respectfully yours.

K. A. RANDALL,

Chairman

THE PRESIDENT OF THE SENATE

THE SPEAKER OF THE HOUSE OF REPRESENTATIVES

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Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION

EXAMINATION

DIVISION

COMMITTEES

BOARD OF REVIEW

LIQUIDATIONS, LOANS AND

PURCHASES OF ASSETS

SPECIAL

BO ARD OF DIRECTORS 

CHAIRMAN 

COMPTROLLER OF THE CURRENCY 

DIRECTOR

SECRETARY

I

I

I

AUDITOR

•

i

I

__________I_________

EXECUTIVE ASSISTANT 

TO THE BOARD

ASSISTANTS

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Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION

BOARD OF DIRECTORS

Chairman_________________________________________ K. A. Randall

Director________________ ____________________ William W. Sherrill

Comptroller of the Currency_____ _______________ James J. Saxon

O FFIC IALS

Assistant to the Chairman______________________ John L. Flannery

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.

Chief, Division of Research and Statistics____Raymond E. Hengren

Chief, Division of Liquidation______ ___ _______ A. E. Anderson

Auditor________________________________________James J. Bogart

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

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

Assistant to the Board________________________William M. Moroney

Assistant to the Board____________________________ Frank E. Tracy

Assistant to the Board_________________________Raoul D. Edwards

Special Assistant to the Chairman_____________________ Lynn Mah

Special Assistant to the Chairman______________Raymond T. Cahill

September 22,1966

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

DISTRICT OFFICES AND SUPERVISING EXAMINERS

1. Lewis S. Rough, Jr., Suite 

805, State Street Bank Building, 225 Franklin Street, Boston, Massachusetts 02110

2. Philip C. Lods, 74 Trinity 

Place, New York, New York 

10006

3. William D. Allen, Suite 600, 

Huntington Trust Building, 

37 West Broad Street, Columbus, Ohio 43215

4. Albert E. Clark, 403 East 

Grace Street, Richmond, Virginia 23219

5. Roger C. Eagleton, 1000 Bank 

of Georgia Building, Atlanta, 

Georgia 30303

6. Lewis C. Beasley, 420 Locust 

Building, 1015 Locust Street, 

St. Louis, Missouri 63101

7. Wallace A. Ryen, 715 Tenney Building, Madison, Wisconsin 53703

8. Claude C. Phillippe, 164 

West Jackson Boulevard, 

Chicago, Illinois 60604

9. Roger B. West, 748 Roanoke Building, Minneapolis, 

Minnesota 55402

10. Stanley Pugh, 1207 Federal 

Reserve Bank Building, Kansas City, Missouri 64106

11. Lloyd Thomas, Federal Reserve Bank Building, Station K, Dallas, Texas 75222

12. Walter W. Smith, Suite 1700, 

582 Market Street, San Francisco, California 94104

FEDERAL DEPOSIT INSURANCE CORPORATION

Main O f ff ic e : 550 1 7th Street, N. W., Wa sh in gto n, D. C. 20429

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Federal Reserve Bank of St. Louis
CONTENTS

Page

The year in brief ________________________________________________________ xii

PART ONE 

OPERATIONS OF THE CORPORATION

The Corporation and banking developments________________________________ 3

Deposit insurance participation and coverage_____________________________ 8

Insurance operations to protect depositors of failing banks_________________ 9

Supervisory activities_____________________________________________________ 14

Legal developments______________________________________________________ 21

Administration of the Corporation__________________________________________ 23

Finances of the Corporation_______________________________________________ 25

PART TWO 

LEGISLATION AND REGULATIONS

Federal banking legislation— 1965 ________________________________________ 81

Rules and regulations of the Corporation _________________________________ 84

State banking legislation— 1965 __________________________________________ 87

PART THREE 

BANKING DEVELOPMENTS

Supervisory status of banks _____________________________________________ 97

Number of banking offices ________________________________________________ 99

Assets and liabilities of banks ___________________________________________ 101

Income of insured banks _________________________________________________ 106

PART FOUR 

STATISTICS OF BANKS AND DEPOSIT INSURANCE

Number, offices, and deposits of banks ___________________________________ 114

Assets and liabilities of banks____________________________________________ 128

Income of insured banks _________________________________________________ 150

Banks closed because of financial difficulties,

and deposit insurance disbursements __________________________________ 178

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LI ST OF TABLES

PART ONE 

OPERATIONS OF THE CORPORATION

INSURANCE OPERATIONS TO PROTECT DEPOSITORS OF FAILING BANKS:

1. Insured banks closed during 1965 requiring disbursements by the

Federal Deposit Insurance Corporation_____________________________ 10

2. Protection of depositors of insured banks requiring disbursements by

the Federal Deposit Insurance Corporation, 1934-1965_______________ 11

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

transactions, January 1, 1934-December 31, 1965___________________ 13

SUPERVISORY ACTIVITIES:

4. Applications approved by the Board of Directors of the Federal Deposit

Insurance Corporation in 1964 and 1965 ____________________________ 15

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

liabilities approved under section 18(c) of the Federal Deposit Insurance Act during 1965______________________________________________ 16

6. Bank examination activities of the Federal Deposit Insurance Corporation in 1964 and 1965______________________________________________ 17

7. Actions to terminate insured status of banks charged with unsafe or

unsound banking practices or violations of law or regulations, 1936- 

1965 19

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

assumption of liabilities approved by the Corporation during 1965____ 33

ADMINISTRATION OF THE CORPORATION:

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

Corporation, December 31, 1964 and 1965__________________________ 24

FINANCES OF THE CORPORATION:

9. Statement of financial condition, Federal Deposit Insurance Corporation, December 31, 1965___________________________________________ 26

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

Insurance Corporation, year ended December 31, 1965______________ 27

11. Determination and distribution of net assessment income, Federal Deposit Insurance Corporation, year ended December 31, 1965________ 28

12. Sources and application of funds, Federal Deposit Insurance Corporation, year ended December 31, 1965________________________________ 29

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

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

1965, adjusted to December 31, 1965_______________________________ 30

14. Insured deposits and the deposit insurance fund, 1934-1965___________ 31

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PART THREE 

BANKING DEVELOPMENTS

SUPERVISORY STATUS OF BANKS:

16. All banks in the United States classified by supervisory status and

Federal deposit insurance participation, December 31, 1965 ________ 98

NUMBER OF BANKING OFFICES:

17. Analysis of changes in number of banks and branches in the United

States during 1965 ______________________________________________ 100

ASSETS AND LIABILITIES OF BANKS:

18. Amounts and percentage changes in assets and liabilities of all banks

in the United States, December 30, 1961, December 31, 1964 and 

1965 ...................... .................................................................................... 102

INCOME OF INSURED BANKS:

19. Sources and disposition of total income of insured commercial banks,

1961, 1964, and 1965 _____________________________________________ 107

20. Operating data of insured commercial banks, 1950, 1955, 1961-1965____ 108

21. Insured commercial banks in the United States (States and other areas)

which reported reserves for bad debt losses on loans pursuant to 

Internal Revenue Service rulings, and amount of such reserves, 

December 31, 1961-1965 __________________________________________ 109

22. Sources and disposition of total income of insured mutual savings

banks, 1961, 1964, and 1965 ______________________________________ 110

PART FOUR 

STATISTICS OF BANKS AND DEPOSIT INSURANCE 

NUMBER, OFFICES AND DEPOSITS OF BANKS:

Explanatory note __________________________________ ___ _________________ 114

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

United States (States and other areas) during 1965 ...... ....................... 116

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

December 31, 1965

Grouped according to insurance status and class of bank, and by

State or area and type of o ffice ___________________________________ 118

103. Number and deposits of all banks in the United States (States and other

areas), December 31, 1965 

Banks grouped according to insurance status and by district and

State _________________________ _______ __ _____ ____________ ____ _ 126

ASSETS AND LIABILITIES OF BANKS:

Explanatory note _____________ ___ ____________________________ __ _______ 128

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

areas), June 30, 1965

Banks grouped according to insurance status and type of bank___ 130

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

areas), December 31, 1965 

Banks grouped according to insurance status and type of b a n k___ 132

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

areas), December 31, 1965 

Banks grouped by district and State ..._____ _____ ________ ___ — 134

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

and other areas), June and December call dates, 1962 through 1965.... 136

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

banks in the United States (States and other areas), December and 

June call dates, 1963 through 1965 ____________________________140

109. Average assets and liabilities and assets and liabilities per $100 of

total assets of insured commercial banks in the United States (States 

and other areas), 1965 

By class of bank .................................................................................... 144

110. Assets and liabilities and assets and liabilities per $100 of total assets

of insured commercial banks operating throughout 1965 in the United 

States (States and other areas), December 31, 1965 

Banks grouped according to amount of deposits _______________ 145

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

States (States and other areas), by State, 1965 ___________________ 146

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

and other areas), December 31, 1965 

Banks grouped according to amount of deposits and by ratios of

selected items to assets ___________________ ___ __________________ 148

INCOME OF INSURED BANKS:

Explanatory note ________ ________________________________________________ 150

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

other areas), 1957-1965 ___________________ __ ___________________ 152

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

(States and other areas), 1957-1965 _____ _____________ _________ _ 154

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

other areas), 1965

By class of bank ..._______ _____ _____ _________________________ 156

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

(States and other areas), 1965 

By class of bank ______ ______ __________ ______________________ 158

117. Income of insured commercial banks operating throughout 1965 in the

United States (States and other areas)

Banks grouped according to amount of deposits ________________ 160

118. Ratios of income of insured commercial banks operating throughout

1965 in the United States (States and other areas)

Banks grouped according to amount of deposits ________________ 162

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

other areas), by State, 1965 ______________________________________ 164*

120. Income of insured mutual savings banks, 1957-1965_________________ 174

121. Ratios of income of insured mutual savings banks, 1957-1965________ 176

BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES,

AND DEPOSIT INSURANCE DISBURSEMENTS

Explanatory note ________________________________________________________ 178

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

1934-1965, by years ______________________________________________ 180

123. Insured banks requiring disbursements by the Federal Deposit Insurance

Corporation during 1965 ___________________________________________ 181

124. Depositors, deposits, and disbursements in insured banks requiring disbursements by the Federal Deposit Insurance Corporation, 1934-1965 

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

assumption, amount of deposits, and S tate________________________ 182

125. Recoveries and losses by the Federal Deposit Insurance Corporation on

principal disbursements for protection of depositors, 1934-1965_____ 184

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THE YEAR IN BRIEF

The number of banks insured by the Federal Deposit Insurance 

Corporation totaled 13,876 at the end of 1965, following a gain of 

56 during the year. About 97 percent of all operating banks and 

trust companies in the United States were insured.

At the end of the year, the Corporation’s insurance fund totaled 

$3,036 million, amounting to 0.80 percent of total deposits in 

insured banks, and 1.45 percent of estimated insured deposits.

Disbursements by the Corporation were required in five failed 

bank cases during 1965. Together these banks had approximately 

16,000 depositors and nearly $44 million in deposits. Three were 

closed by their chartering agency, whereupon the Corporation 

paid their depositors up to the $10,000 maximum; it also accepted 

appointment as receiver in each case. Liabilities of the other two 

banks were, with the Corporation’s assistance, assumed by individual insured banks which made deposits of the absorbed banks 

available in full to the depositors.

Supervisory activities of the Corporation continued to increase 

in 1965. Field examinations and investigations conducted by the 

Corporation, totaling almost 13,000, were appreciably greater than 

in 1964. During the year the banking industry and the Corporation 

became substantially involved for the first time with Federal registration and reporting of bank securities. The first full year of 

operation was completed also under Public Law 88-593, providing 

for notice to the appropriate Federal banking agency of changes in 

control of insured banks.

The number of banking offices in the United States rose by 1,231 

during 1965 to a total of 30,958. Virtually all of the increase was due 

to net increases in branches.

Assets of all banks totaled $437 billion at the end of 1965, after 

a gain of 8.6 percent during the year. Much of this increase reflected the continued rapid growth of loans. Total deposits climbed 

8.1 percent to nearly $387 billion, most of the rise occurring in the 

time and savings category. Net income after taxes of insured commercial banks rose 10.1 percent above 1964, and represented a 

return of 8.45 percent on total capital accounts.

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Federal Reserve Bank of St. Louis
OPERATIONS

OF THE CORPORATION

PART ONE

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Federal Reserve Bank of St. Louis
3

THE CORPORATION AND BANKING DEVELOPMENTS

The Federal Deposit Insurance Corporation was established for 

the purpose of protecting bank depositors and helping to bring 

about sound conditions in the nation’s banking system. Through 

Federal deposit insurance, individual depositors in insured banks 

presently are protected to a maximum of $10,000. The protection 

afforded by the Corporation has buttressed the use of bank deposits as the major component of the nation’s money supply. As a 

bank supervising agency, stemming from its function as an insurer, 

the Corporation’s role has increased in scope and complexity with 

the changes and rapid growth in the banking system.

Created by the Banking Act of 1933 at the depth of the Depression, the Corporation’s first urgent role was to help restore public 

confidence in banks. During the years immediately following, its 

efforts were directed largely toward rescuing weak banks and paying off deposits in closed banks. The success of the Corporation 

in these early operations was essential to the establishment of deposit insurance on a sound basis. While the probability of recurrence of banking difficulties of such severity is quite remote, maintenance of confidence in banks is a lasting concern of the 

Corporation.

Two years after its beginning, under the Banking Act of 1935, 

the Corporation acquired certain additional powers of vital importance to its supervisory functions. The Act of 1935 clarified and 

made permanent the Corporation’s authority to examine insured 

banks not members of the Federal Reserve System and to review 

examination reports of members of the System. Provision was 

made for termination of the insured status of any bank which 

persistently engaged in unsafe or unsound practices or in violation 

of laws or regulations. Among other provisions, the Act conferred 

upon the Corporation the power to pass upon certain mergers, 

branching activity, and changes in capitalization by nonmember 

insured banks, to require reports of condition, and to prescribe 

regulations regarding the payment of interest on deposits by these 

banks.

The Act of 1935 completed the basic structure of deposit insurance as it has served the nation during the ensuing three decades. 

Although given specific functions in administering the insurance 

program, the Corporation actually has quite limited powers. It can 

neither charter nor close a bank, and it has passed upon only about 

one-half of all banks recently admitted to deposit insurance. In effect, the supervisory powers and activities of the Corporation serve

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

to complement and strengthen those of other Federal and State 

banking agencies. In the exercise of its powers, the Corporation 

since its inception has recognized its responsibilities for fostering 

the sound operation of insured banks.

Following the turbulent era of the 1930’s, when failures were 

numerous, the Corporation was able to concentrate more of its 

efforts on the improvement of conditions and practices in operating 

banks. Its operations in failed bank cases meanwhile had dropped 

sharply following the early 1940’s, as indicated by the trend of disbursements shown in Chart A. From an average of 52 failures of 

insured banks per year in 1934-1939, the rate fell to 26 annually in 

1940-1942 and to an average of about 3 per year in subsequent 

years. At the same time, banks were entering an era of rapid growth, 

as total deposits in commercial banks more than doubled between 

1941 and 1945.

During the decade after World War II the number of insured 

banking institutions in the United States declined slightly; nevertheless the Corporation’s supervisory activities in bank examinations 

and in other areas were considerably developed and expanded. 

Of great importance to the Corporation’s activities at that time and 

since have been the close liaison and working relationships with 

the other Federal and State bank supervisory agencies. An agreeDigitized for FRASER 

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THE CORPORATION AND BANKING DEVELOPMENTS 5

ment among the agencies, for example, made in 1938 and reaffirmed 

in 1949, provided for uniform examination methods in appraising 

bank assets. Another facet of this cooperation has been the conduct of examinations on a joint or concurrent basis with State 

authorities.

In its capacity as insurer of deposits in all national banks, virtually all State-chartered commercial banks, and most mutual savings 

banks, the Corporation for many years has assembled, processed, 

and made available statistics for all banks. In 1947, under a cooperative arrangement worked out by the Bureau of the Budget and the 

three Federal banking agencies, the Corporation was given specific 

responsibilities for compiling and publishing the “ all bank” data, 

including data for noninsured banks.

The period since the late 1940’s has been one of vast growth 

and change in the banking system. Shifts and growth of population, and efforts to increase market penetration have led to a continuing rise in the number of banking offices, much of this in the 

form of branching activity. Chart B shows that in the past two decades the number of banks changed little, while branches rose 

almost threefold. Statewide branching, limited-area branching, and 

unit banking are each prevalent in about one-third of the States, 

reflecting in part the legal status of branch banking within each

CHART B

BRANCHES HAVE ACCOUNTED FOR A RISING PROPORTION

B A N K IN G OFFICES OF OF BANKING OFFICES B A N K IN G OFFICES OF

CO M M ER CIA L B A N K S CO M M ER CIA L B A N K S

40.000 40.000

BRANCHES

■ BANKS

30.000 — 30,000

1945 '4 6 ’47 ’48 '49 '50 '51 '5 2 ’53 ’54 ’55 ’56 '57 ’ 58 ’59 '60 ’61 '62 ’ 63 ’64 '6 5

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6 FEDERAL DEPOSIT INSURANCE CORPORATION

State. Where branching is permitted, continuing merger activity 

has also contributed to the increase in branches.

One of the most spectacular changes in recent years has been 

the rapid growth of commercial banks’ loan portfolios. In the past 

five years, for example, commercial banks increased their loans by 

64 percent, while adding about 46 percent to total assets. Chart C 

shows the increments in each of the major segments of bank loans 

between 1960 and 1965.

CHART C

LO AN S OF A LL 

C O M M ER C IA L B A N K S 0

GROWTH AND DIVERSIFICATION OF BANK LENDING 

HAS BEEN SUBSTANTIAL SINCE 1960*

15 30 45 60 75

TOTAL

"O TH ER ”

AG RICULTURE

SECURITIES

FINANCIAL

IN STITUTIO NS

CONSUMER

REAL ESTATE

COMMERCIAL

AND INDUSTRIAL

B IL L IO N S OF DOLLARS

60 75 90

•IN C R E A S E 6 /1 5 /6 0 -6 /3 0 /6 5

Banks have moved to accommodate the mounting volume of loan 

demand in various ways, including greater use of amortized credit. 

They have also adjusted to increased credit demands through a 

more fully developed market for Federal funds, which has brought 

a more efficient use of reserves. New uses of time certificates of 

deposit and the development of capital notes and debentures, along 

with higher interest rate ceilings on time and savings deposits, have 

enabled banks to compete more effectively for funds.

Benefitting by the economy’s growth, banks have continued to 

fulfill their traditional role as lenders to business and industry, but 

in doing so have also moved ahead in developing an imaginative 

array of techniques to finance new industries. Equipment leasing, 

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THE CORPORATION AND BANKING DEVELOPMENTS 7

ports are but a few examples of such areas of innovation or 

development.

Commercial banks have become the predominant suppliers of 

consumer instalment credit, as their loans of this type have risen 

from less than $1 billion at the end of World War II to over $43 billion in 1965. Since 1960, consumer credit advanced by commercial 

banks has continued to rise faster than their total loans. In addition 

to the funds which banks supply to other lenders, they directly provide over two-fifths of the funds used in consumer instalment credit. 

Similarly, the participation of banks in the field of mortgage financing has had a marked development. The fact that real estate credit 

of commercial banks rose from $28 billion to $46 billion during the 

past five years, but still declined slightly as a percentage of total 

loans, dramatizes the great expansion in bank lending.

One of the most dynamic areas of banking operations today is 

the expanding range of non-credit services offered. Banks find 

themselves increasingly in the role of middlemen with respect to 

customers and different segments of the money market. Financial 

counseling requires services of an ever more sophisticated nature. 

Trust services provided by banks have expanded rapidly to keep 

pace with the flourishing economy, the increasing affluence of our 

citizens, and the proliferation of pension funds. At the same time 

the ever-rising volume of deposit and check transactions has continued unabated.

Fortunately, the development of computer systems seems to 

promise deliverance from an otherwise almost insurmountable 

problem of handling the burgeoning volume of check clearings. 

Paradoxically, the day may be envisioned when payments of money 

on deposit by the average individual will be handled through automated systems without the use of checks. Now employed also in 

the preparation of payrolls, in the provision of check reconciliation 

services for customers, and in various other activities, adaptations 

of computers to more numerous and difficult tasks are rapidly 

being developed.

As an insuring and supervisory agency, the Federal Deposit 

Insurance Corporation has a direct concern in these developments 

that affect the sound operation of banks and the quality of banking 

services. Aware that it cannot itself stand still in the face of these 

developments, the Corporation is currently engaged in a program 

to strengthen its own capability to serve insured banks. It foresees 

in particular the possibility of significant advances in the quality 

of research in the areas of banking markets and banking structure.

Progress was made by the Corporation during the past year in 

preparing to provide banks with data designed to assist them in 

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8 FEDERAL DEPOSIT INSURANCE CORPORATION

stalled a new computer system that has a capability for vastly more 

rapid and extensive analysis of banking data than hitherto possible.

The many applications of the new equipment are promising, both 

for supervisory purposes and in direct benefits to all banks. Among 

other uses, it will permit the Corporation to meet more effectively 

its responsibilities in the area of banking statistics. The computersupplied information made available by the Corporation should in 

turn be useful to banks for many purposes—such as market penetration studies, cost analyses, and evaluation of investment alternatives.

Recent years have brought greater management and supervisory 

recognition of the importance of bank auditing. Significant opportunities exist for further development of the complementary relationships between auditing and the supervisory examination. As a 

management tool, moreover, the detailed audit is assuming greater 

importance with the growth and increasing complexity of bank 

operations. At present, the Corporation is studying the more specific audit phases of its examination procedures and added emphasis in this direction is planned in its regular assignments.

In summary, the promotion of a sound banking system which 

merits public confidence is a traditional, and still vital, concern of 

the Corporation. The challenge of this task is sharpened by the vast 

growth in size and complexity of the nation’s economy and banking 

system. Banks have proven themselves adaptable, through improvement of facilities, more efficient operating methods, and imaginative 

programs for development of customer services. The Corporation 

has responded to the needs of the day by instituting programs designed to help banks adapt to change and improve their abilities 

to meet growing needs for their services.

DEPOSIT INSURANCE PARTICIPATION AND COVERAGE

At the end of 1965, the number of banks insured by the Corporation totaled 13,876, after a rise of 56 during the year. About 97 

percent of all operating banks and trust companies in the United 

States were insured.

Incorporated commercial banks, trust companies which receive 

deposits, and mutual savings banks may qualify for participation in 

Federal deposit insurance. National banks are insured upon their 

chartering by the Comptroller of the Currency; those State banks 

which become members of the Federal Reserve System must be 

admitted to insurance. Other banks become insured upon application to and approval by the Corporation’s Board of Directors.

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DEPOSIT INSURANCE PARTICIPATION AND COVERAGE 9

third of these banks, including nondeposit trust companies, private 

banks, industrial banks, branches in the United States of banks 

chartered in foreign countries, and several banks operating under 

special codes or charters are not eligible for insurance. Of the remaining noninsured banks, 177 are mutual savings banks, virtually 

all of which are located in Massachusetts and covered under an insurance system in that State.

Maximum insured protection for each depositor in an insured 

bank was first established at $2,500 by the Banking Act of 1933. 

Coverage was lifted to $5,000 in mid-1934, and subsequently remained unchanged until increased in 1950 to its present level of 

$10,000. The maximum insurance per depositor in an insured bank 

applies to deposits owned in the same right and capacity. Coverage 

may of course be extended readily by opening accounts at other 

insured banks.

About 55 percent of all deposits in insured banks is covered by 

Federal deposit insurance, this estimate being based upon the results of a survey in 1964 and subsequent deposit trends. The proportion varies considerably among types of accounts. It is substantially higher, for example, for the deposits of business firms and individuals than for deposits of public funds, the latter being protected also by surety bonds or pledges of securities in addition to 

deposit insurance.

INSURANCE OPERATIONS TO PROTECT

DEPOSITORS OF FAILING BANKS

Banks failing in 1965. The Corporation made disbursements to 

protect depositors in five banks which failed in 1965. The number 

of depositors affected was somewhat below the number assisted in 

the seven banks which failed in 1964, but the five banks held almost 

twice as much in deposits. The name, location, and other data concerning these banks are given in Table 1.

The five insured banks failing in 1965 had approximately 16,000 

depositors and almost $44 million in deposits. One bank alone accounted for 80-90 percent of the respective totals. Three of the 

banks, including this one, were closed by their chartering agency 

and placed in receivership, with the Corporation being named receiver in each case. Depositors of each bank were promptly paid 

their insured deposits.

The liabilities of the other two banks were assumed by individual 

insured banks, where deposits of the absorbed banks were immediately made available in full to depositors. The Corporation made 

this possible by disbursing $456,882 to purchase assets of the distressed banks which were unacceptable to the assuming banks.

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10 FEDERAL DEPOSIT INSURANCE CORPORATION

Table 1. INSURED BANKS CLOSED DURING 1965 REQUIRING 

DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION1

Case

number

Name and 

location

Date of 

closing 

or deposit 

assumption

Number 

of depositors' 

accounts

Amount of 

deposits 

(in thousands)2

Date of first payment to depositors or disbursement by FDIC

Depositors 

receiving 

full recovery

Deposits 

paid 

(in thousands)3

Total 15,810 $43,837 14,377 $19,720

Deposi t payoff

275 The Brighton 

National Bank, 

Brighton, Colorado

January 22,1965 1,374 2,254 January 28, 

1965

1,283 928

276 San Francisco 

National Bank, 

San Francisco, 

California

January 22,1965 12,484 40,176 January 29, 

1965

11,198 17,523

277 Winona State Bank, 

Winona, Texas

February 5,1965 498 435 February 10, 

1965

442 297

Deposit assum ption

183 Malone State Bank, 

Malone, Texas4

February 25, 1965 695 525 February 25, 

1965

695 525

184 First State Bank, 

Covington, Texas5

April 5,1965 759 447 April 5,1965 759 447

1 Figures adjusted to and as of December 31,1965.

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

litigation to determine whether they represent funds received by the banks in the usual course of business.

3 Includes $8,559 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 Liabilities assumed by First State Bank, Hubbard, Texas.

5 Liabilities assumed by The First National Bank of Itasca, Itasca, Texas.

Of the nearly 16,000 depositors in the five failing banks, about 

1,500 had not received full recovery by the end of 1965. Almost twothirds of this number can obtain full recovery simply by presenting their claims to the Corporation or through offset against their 

debts to the bank. Included amdng the remaining accounts are deposits in excess of the $10,000 maximum insurance coverage, and 

certain certificates of deposit carried on the books of some of the 

banks as deposits, the insured status of which is now in litigation. 

Less than half of the amounts in these accounts in the five banks 

had been paid at the end of 1965.

Recovery of disbursements made by the Corporation in these 

five cases is proceeding. In its capacity as receiver in the three 

receivership cases, the Corporation is liquidating the banks’ assets 

and it shares pro rata with the owners of uninsured claims and 

other common creditors in the proceeds from the liquidation. Assets 

acquired by the Corporation in the two assumption cases are likewise being liquidated. The Corporation estimates that after it has 

recovered all it can, it will have lost about $6.4 million in the five 

cases.

Banks failing, 1934-1965. During its 32 years of operation the 

Corporation has made disbursements to protect depositors in 459 

failing banks. These banks had over 1.5 million depositors or acDigitized for FRASER 

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Federal Reserve Bank of St. Louis
INSURANCE OPERATIONS TO PROTECT DEPOSITORS 11

counts, and total deposits of $702 million. The extent and method 

of this protection are shown in Table 2.

The Corporation has used two methods in meeting its insurance 

obligation. In the deposit payoff method, employed in 275 cases, 

payment of deposits up to the insured maximum was made directly to depositors by the Corporation’s claim agents. Reflecting 

changes in the deposit insurance maximum, one case involved protection up to $2,500 per depositor, 244 cases up to $5,000, and 30 

cases up to $10,000.

The deposit assumption method, which protects depositors in 

full and makes their deposits available immediately, has been used

Table 2. PROTECTION OF DEPOSITORS OF INSURED BANKS REQUIRING 

DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,

1934-1965

Item

All cases 

(459 banks)

Deposit payoff 

cases 

(275 banks)

Deposit 

assumption cases 

(184 banks)

Number or 

amount Percent

Number or 

amount Percent

Number or 

amount Percent

N um ber of depositors or accounts

—t o ta l1.............................................. 1,532,325

1,520,593

1,474,827

39,621

2,944

3,201

11,732

100.0%

99.2

96.2

496,138

484,406

438,6403

39,621

2,944

3,201

11,732

2,863

8,869

$234,116

204,039

151,0838

12,316

24,283

100.0%

97.6

88.4

1.036.187

1.036.187

1.036.187

100.0%

100.0

100.0

Full recovery received or available ..................................................

From FDIC 2..........................................

From offset4........................................... 2.6 8.0

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

From asset liquidation 6.......................... .2 .6

Full recovery not received as of

D ecem ber 3 1 ,1 9 6 5 ................. .8 2.4

Terminated cases.................................. 2,863 .6

8,869

.2

Active cases 7.......................................... .6 1.8

Am ount of deposits (in thousands)

—t o t a l .............. ......................... $701,615

671,538

618,582

12,316

24,283

16,357

30,077

1,804

28,273

100.0%

95.7

88.2

100.0%

87.2

64.5

$467,499

467.499

467.499

100.0%

100.0

100.0

Paid or m ade a v a ila b le ..................

By FDIC2................................................

By offset 9............................................... 1.7 5.3

By security or preference 10................... 3.5 10.4

By asset liquidation 11............................ 2.3 16,357

30,077

7.0

N ot paid as of D ecem ber 3 1 f

1 9 6 5 ................................................ 4.3

.3

12.8

Terminated cases.................................... 1,804 .8

Active cases 12...................................... 4.0 28,273 12.0

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 $198,531 thousand, in deposit assumption cases.

3 Includes 57,453 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 7,957 of these depositors.

8 Includes $200 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 Corporation.

11 Includes unclaimed deposits paid to authorized public custodians.

12 Includes $10,196 thousand representing deposits available but unclaimed, expected through offset, or expected 

from proceeds of liquidations; and $3,770 thousand representing up to $10,000 of each of certain certificates of deposit 

whose insured status is in litigation.

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12 FEDERAL DEPOSIT INSURANCE CORPORATION

in 184 cases. Under this procedure the Corporation acquires, by 

purchase or loan, the assets of the distressed bank which are unacceptable to the absorbing bank, enabling the latter to assume the 

liabilities of the distressed bank. Use of this method is limited to 

situations wherein the Corporation expects it will reduce its risk 

or avert a threatened loss, and to where the action will facilitate a 

merger with another insured bank. The method is not ordinarily 

suitable for situations where much uncertainty exists as to the 

nature and extent of a bank’s deposit liabilities.

The Corporation has built its insurance operations around the 

twin objectives of restoring deposits to depositors as promptly as 

possible, while at the same time seeking to maximize recovery on 

its disbursements. The latter objective, which requires patience and, 

above all, avoidance of any disruption of local markets, accounts 

for the time required to liquidate assets acquired in these cases, 

a problem accentuated by the necessarily adverse quality of the 

assets. At the end of 1965, some assets remained to be liquidated 

from 29 failed bank cases, including the five initiated during 1965. 

These active cases account for the major part of the accounts and 

deposits not yet paid shown in Table 2. Even including these, however, less than 1 percent of the accounts in the 459 insured banks 

closed since January 1, 1934, had not been paid in full by the end 

of 1965.

Corporation disbursements and losses, 1934-1965. Since beginning operations, the Corporation has disbursed or expects to disburse $402 million in fulfilling its insurance obligation. Principal 

disbursements in the 184 assumption cases totaled $199 million 

through 1965; and in the 275 deposit payoff cases, $152 million.

Recoveries made or expected at the end of 1965 totaled $360 

million, resulting in a loss to the Corporation estimated at $42 

million, excluding $9 million of interest and allowable return received by the Corporation on its advances. Details of disbursements, recoveries and losses are shown in Table 3.

Provision of facilities when banks are failing. The Corporation’s 

responsibility to depositors goes beyond protecting their deposits 

to providing them a banking facility, an objective that neither payoffs nor assumptions are necessarily able to accomplish.

Since its establishment the Corporation has had the authority to 

organize and operate a “ Deposit Insurance National Bank” , restricted primarily to accepting and paying deposits. Such a bank 

normally replaces a failed bank and provides limited banking service to a community until permanent facilities are available. The 

limited and temporary character of such a facility is indicated by its 

inability to make loans, and by the requirement that it be liquidated

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INSURANCE OPERATIONS TO PROTECT DEPOSITORS 13

Table 3. ANALYSIS OF DISBURSEMENTS, RECOVERIES AND LOSSES 

IN DEPOSIT INSURANCE TRANSACTIONS,

JANUARY 1, 1934-DECEMBER 31, 1965 

(In thousands)

Type of disbursement Disbursements Recoveries1 Losses

All disbursem ents—to ta l.

Principal disbursem ents in deposit assum ption and

payoff cases—to ta l...........................................................

Loans and assets purchased (184 deposit assumption cases):

To December 31,1965..........................................................

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

$402,196

$350,181

$198,531 1

Deposits paid (275 deposit payoff cases):

to December 31,1965...........................

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

Advances and expenses in deposit assum ption and

payoff cases—to ta l...........................................................

Expenses in liquidating assets in 184 deposit assumption cases:

Advances to protect assets............................................................

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

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

Field payoff and other insurance expenses in 275 deposit payoff cases.

O ther disbursem ents—to ta l...................................................

Assets purchased to facilitate termination of liquidations:

To December 31, 1965...................................................................

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

Unallocated insurance expenses........................................................

150,873 1 

777 /

$ 50,044

$ 32,875 

14,463 

248 

2,458

$ 1,971

$ 1,772 | 

.........i99

$359,877

$310,105

$184,959 1 

292 /

115,583 1 

9,271 /

$ 47,338

$ 32,875 

14,463

(2)

(2)

$ 2,434

$ 2,4191 

15/

(2)

$42,319

$40,076

$13,280

26,796 

$ 2,706

$ 248

2,458

$ (463)3

$ (662)4 

199

1 Excludes recoveries in excess of amounts due the Corporation, which were returned to stockholders and holders of 

capital obligations of failed banks. Does not include $9.3 million of interest and allowable return received by the Corporation on its advances.

2 Not recoverable.

3 Net recovery in excess of disbursements.

4 Net profit and net income.

if it has not been transferred to private ownership within two years.

The first such banks, numbering 24, were organized solely to 

pay depositors of insured banks placed in receivership during the 

operation of the temporary insurance plan, and were terminated 

when payoffs were completed. After this procedure for paying depositors was made optional in the Banking Act of 1935, only three 

such banks have been organized. One, organized in 1935, was capitalized and chartered as a privately-owned bank the next year, 

and continued in operation until it consolidated with another bank 

in 1958. No further use of this authority was made until 1964, when 

two Deposit Insurance National Banks were organized, and these 

continued in operation during all of 1965 under Corporation 

auspices.

In 1950 the Corporation was given another tool to meet situations 

where an insured bank which has closed or is threatened with failure provides vital banking services. If continued operation of such 

a bank is deemed essential to provide adequate banking service in 

the community, the Corporation may make loans, purchase assets, 

or deposit funds in the bank. So far this authority has not been 

exercised.

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14 FEDERAL DEPOSIT INSURANCE CORPORATION

SUPERVISORY ACTIVITIES

That the activities of banks substantially affect the public interest, 

and that consequently these institutions should be subject to some 

measure of public regulation has long been recognized. Banks, 

whose checking deposits provide the lubricant which makes possible the functioning of a modern economy, are also a primary means 

for channeling the economy’s savings into productive outlets. As 

the cornerstone of the nation’s financial structure, banks have the 

responsibility of providing a safe depository for funds and a continuity of basic services, while actively supporting growth and development of their communities.

Supervision of banks is a basic function of the bank chartering 

agencies. National banks are chartered and supervised by the U.S. 

Comptroller of the Currency. State banks are chartered under the 

various State laws, and those State banks which are members of 

the Federal Reserve System are supervised also by the Federal 

Reserve authorities. Although the Corporation does not charter 

banks, as insurer of deposits it has direct supervisory functions with 

respect to State nonmember banks, and some aspects of its supervision extend to all insured banks.

Applications to become insured or operate a branch. Through the 

power to regulate the formation of banks and acquisition of 

branches, the bank supervisory agencies seek to promote soundness and a desirable degree of competition in banking. Before approval of an application for insurance, the law requires that the 

Corporation must give consideration to the financial history and 

condition of the bank, the adequacy of its capital structure, its 

future earnings prospects, the general character of its management, 

the convenience and needs of the community to be served by the 

bank, and finally, whether or not the bank’s corporate powers are 

consistent with the purposes of the Federal deposit insurance law.

The Corporation passes upon applications by State nonmember 

banks for deposit insurance; national and State member banks become insured upon certification by the appropriate Federal chartering or supervisory authority after consideration of the six factors. 

Throughout most of the Corporation’s life, the chartering authorities 

have sought its opinion regarding a bank’s insurance eligibility before issuing a charter.

Applications submitted by nonmember insured banks and approved by the Board of Directors in 1965 are shown in Table 4. 

Approvals included 97 admissions to insurance, of which 79 were 

new banks, and 440 applications for branches. During the year, 9 

applications for insurance, 2 applications for branches, and 4 other 

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SUPERVISORY ACTIVITIES 15

tions submitted to the Board of Directors; the number of disapprovals tends to be reduced by withdrawal or improvement of applications after preliminary discussion prior to their submission to the 

Board.

Table 4. APPLICATIONS APPROVED BY THE BOARD OF DIRECTORS 

OF THE FEDERAL DEPOSIT INSURANCE CORPORATION 

IN 1964 AND 1965

Type of application 1965 1964

All applications 1........................................................................................................ 1,004 895

A dm ission to insurance—to ta l........................................................................ 97 130

New banks.................................................................................................................. 79 112

Operating banks.......................................................................................................... 18 18

Continuation of insurance of banks w ithdraw ing from Federal

Reserve S ystem .............................................................................................. 18 23

C hange in type of business—to ta l................................................................. 52 70

To engage in trust business or to provide additional fiduciary services 2................... 45 65

To enlarge powers of a branch...................................................................................

Change from industrial or savings banking to commercial.........................................

A ssum ption of deposit liab ilitie s —to ta l.....................................................

Of another insured bank.............................................................................................

5 5

2

52 33

45 273

Of a noninsured bank.................................................................................................. 5 1

Of a nondeposit financial institution........................................................................... 2 3<

Of a branch of a noninsured foreign bank.................................................................. 2

O peration of branches—to ta l...........................................................................

New branch offices......................................................................................................

440 368

349 318

Banks becoming branches as result of absorbtion...................................................... 38 26

Continue branches of absorbed predecessor............................................................... 46 24

Conversion of mobile branch to stationary branch..................................................... 7

Change of location—to ta l................................................................................... 289 248

Main offices................................................................................................................ 206 168

Branches...................................................................................................................... 83 80

Retirement or adjustment of cap ita l................................................... 48 21

Service of person convicted of dishonesty or breach of tru s t........... 3 2

Exem ption from req u irem en ts of Securities Exchange Act of 1 9 3 4 . 3

O th er............................................................................................................................ 2

1 Excludes applications supplementary to a primary application; for example, for an extension of time with respect to 

an insurance commitment for a new bank. Also excludes a few applications acted upon in prior years on which additional 

action was taken during 1964 and 1965.

2 Includes permission to four new banks in 1964, and two in 1965, to do a trust business.

3 In one case only a branch of an insured bank was absorbed.

4 Includes two safe deposit companies and one savings and loan association.

Merger transactions. Bank mergers have constituted one of the 

most active areas of banking in recent years. Concern for preservation of the benefits from competition in the face of increasing numbers of mergers has led Congress to invest the bank supervisory 

agencies with greater responsibilities in this area.

The Bank Merger Act of 1960 requires approval by the appropriate Federal banking authority for an insured bank to engage in any 

absorption transaction. Consent of the Corporation is required for 

any transaction in which the resulting bank is an insured bank not 

a member of the Federal Reserve System and is outside the District

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16 FEDERAL DEPOSIT INSURANCE CORPORATION

TABLE 5. MERGERS, CONSOLIDATIONS, ACQUISITIONS OF ASSETS 

AND ASSUMPTIONS OF LIABILITIES APPROVED UNDER SECTION 18(c) 

OF THE FEDERAL DEPOSIT INSURANCE ACT DURING 1965

Offices operated2

Banks Number

of

banks1

Resources

(in

thousands)2

Prior to 

transaction

After

transaction

ALL CASES

Banks in vo lved .......................................................................... 298 $26,638,773

24,543,175

2,095,598

951,130

399,445

719,578

25,445

2,063

1,775

288

2.057

Absorbing banks............................................................................ 2.057

Absorbed banks3...........................................................................

131

167

National4.................................................................................... 66 111

State banks members FRS......................................................... 20 45

Not members FRS5.................................................................... 74 124

Noninsured institutions3............................................................ 7 8

CASES WITH RESULTING BANK 

A NATIONAL BANK

Banks in vo lved.......................................................................... 151 $14,905,078

13,864,528

1,040,550

436,225

138,594

465,731

1,253

1,097

156

1.257

63 1.257Absorbing banks............................................................................

Absorbed banks............................................................................. 88

National...................................................................................... 44 77

State banks members FRS......................................................... 10 18

Not members FRS...................................................................... 34 61

Noninsured institutions..............................................................

CASES WITH RESULTING BANK A 

STATE BANK MEMBER OF THE 

FEDERAL RESERVE SYSTEM

Banks in vo lved.......................................................................... 48 $ 8,095,636

7,579,643

515,993

351,217

88,046

76,730

435 437

Absorbing banks............................................................................ 21 397 437

Absorbed banks............................................................................. 27 38

National...................................................................................... 8 11

State banks members FRS......................................................... 6 7

Not members FRS............................................................... 13 20

Noninsured institutions..............................................................

CASES WITH RESULTING BANK NOT 

A MEMBER OF THE 

FEDERAL RESERVE SYSTEM

Banks in vo lved.......................................................................... 99 $ 3,638,059 375 363

Absorbing banks............................................................................ 47 3,099,004

539,055

163,688

172,805

177,117

25,445

281 363

Absorbed banks............................................................................. 52 94

National4.................................................................................... 14 23

State banks members FRS......................................................... 4 20

Not members FRS5.................................................................... 27 43

Noninsured institutions3............................................................ 7 8

1 The number of resulting banks is smaller than the number of cases, which totaled 149, 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 last transaction.

3 Includes 2 institutions other than banks (one holding company and one safe deposit company).

4 Includes one case in which a State bank not a member of the FRS absorbed 2 branches of a national bank; resources 

and offices of branches (counted as 2 banks) are included in this table.

5 In one case a newly organized State bank not a member of the FRS absorbed a branch (counted in the table as a 

bank) of a bank of the same class; resources and office of branch are included in this table.

of Columbia, or which involves a noninsured bank or institution. 

The other Federal banking agencies have similar authority over 

merger transactions in which the resulting bank is under their 

jurisdiction.

In making their determinations in 1965, each agency was required 

to consider the effect of the transaction on competition, including 

any tendency toward monopoly, in addition to the six banking factors enumerated above. Each of the agencies, along with the AtDigitized for FRASER 

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SUPERVISORY ACTIVITIES 17

torney General, submitted advisory reports concerning the effect 

of the transaction on competition to the agency responsible for decision in the given case.

There were 298 banks involved in merger applications approved 

by the three Federal agencies during 1965. The 167 absorbed financial institutions, mostly banks, had resources totaling $2,096 million; 

nearly all continued in operation as banking offices. Further information regarding the applications approved during 1965 is shown 

in Table 5.

Merger applications approved by the Corporation during 1965 

involved the absorption of 52 financial institutions with resources 

of $539 million. Data concerning these cases, with a statement for 

each giving the basis for approval and a summary by the Attorney 

General of his report regarding the competitive factors involved, 

are shown in Table 15, pp. 33-77.

Bank examinations. As a basic supervisory tool, the bank examination develops information which forms a basis for the Corporation’s decisions affecting individual banks. Included in examination 

reports are details of the bank’s financial condition, a report of any 

violations of pertinent banking laws and regulations, and finally an 

evaluation of the bank's management.

Table $. BANK EXAMINATION ACTIVITIES OF THE FEDERAL 

DEPOSIT INSURANCE CORPORATION IN 1964 AND 1965

Activity

Number

1965 1964

Field exam in ations and investigations—to ta l...................................

Exam inations of m ain o ffice s ................................................................

Regular examinations of insured banks not members of Federal Reserve System

Re-examinations; or other than regular examinations.......................................

Entrance examinations of operating noninsured banks.....................................

E xam inations of departm ents and b ran ch es...................................

Examinations of trust departments....................................................................

Examinations of branches...................................................................................

In vestigatio ns..................................................................................................

New bank investigations....................................................................................

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

Banks not members of Federal Reserve S ystem .............................

New branch investigations..................................................................................

Mergers and consolidations................................................................................

Miscellaneous investigations..............................................................................

12,981 12,484

6,796 6,753

6,618 6,592

146 124

32 37

4,439 3,977

1,056 981

3,383 2,996

1,746 1,754

151 214

6 5

145 209

435 373

144 147

1,016 1,020

9,077 7,600

1,607 57

603 1,134

6,867 6,409

W ashington office review of reports of exam in ation of insured

banks—to ta l.......................................................................................................

National banks...........................................................................................................

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

State banks not members of Federal Reserve System.............................................

The policy of the Corporation is to examine each bank under its 

supervision at least once each year. More than one examination 

may be made if corrective action is involved, or if otherwise deemed

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18 FEDERAL DEPOSIT INSURANCE CORPORATION

necessary. Although authorized by law to examine any insured 

bank for insurance purposes, in practice the Corporation reviews 

the examination reports of the Federal supervisory agencies and 

rarely makes its own examinations of national banks or State member banks.

Numbers of examinations and investigations made in 1964 and 

1965, along with reviews of reports, are shown in Table 6.

Citations for unsafe or unsound banking practices and violations

of law. When examination of a bank reveals continuation of unsafe 

or unsound banking practices or violation of law or regulations, the 

Corporation has the authority and duty to begin proceedings for 

termination of the bank’s insured status. These proceedings, prescribed under Section 8 (a) of the Federal Deposit Insurance Act, 

are started only after cooperative actions between the bank and the 

Corporation have been exhausted. After formal notice of the violations or objectionable practices, the bank is given a stipulated 

period for their correction, and later opportunity, if the proceeding 

is continued, to present its case at an administrative hearing. If and 

when insurance is withdrawn, the insured deposit of each depositor on the date of termination, less later withdrawals, continues to 

be insured for two years.

During 1965, proceedings were instituted against four banks. 

One case was closed when the bank suspended. Four cases were 

still pending at the year’s end, including one case begun in 1964.

During the Corporation’s entire period of operation, actions to 

terminate insurance have been taken against 193 banks. In only 12 

cases have proceedings reached the ultimate stage of actual or 

scheduled termination. A summary of the outcome of all termination 

proceedings is given in Table 7.

Regulation of bank securities. During 1965 the banking industry 

for the first time became substantially involved with Federal securities regulation. Public Law 88-467, approved by the President on 

August 20,1964, extended the registration and reporting provisions 

of the Securities Exchange Act of 1934 to securities traded in the 

over-the-counter market, including securities issued by banks. 

Under new section 12(g) of the Act, an issuer of securities, having 

assets exceeding one million dollars and a class of equity security 

held of record by 750 or more persons (500 after July 1, 1966), is 

required to register such security within 120 days after the last day 

of its first fiscal year on which it meets the minimum standards. 

Additional reporting requirements are contained in sections 13, 

14(a), 14(c) and 16 of the Act. The responsibility for administering 

and enforcing the Act with respect to insured banks is vested by 

section 12(i) in the three Federal bank supervisory authorities. The

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SUPERVISORY ACTIVITIES 19

Table 7. ACTIONS TO TERMINATE INSURED STATUS OF BANKS 

CHARGED WITH UNSAFE OR UNSOUND BANKING PRACTICES OR 

VIOLATIONS OF LAW OR REGULATIONS, 1936-1965

Disposition or status

Total banks against which action was ta k e n ...............................................

Cases clo sed ............................................................................................................

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

Banks absorbed or succeeded by other banks............................................................

With financial aid of the C orporation...........................................................

Without financial aid of the C orporation.....................................................

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

Insured status terminated, or date for such termination set by Corporation, for failure

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

Banks suspended prior to or on date of termination of insured status

Banks continued in operation 2......................................................................

Cases not closed D ecem ber 31, 1 9 6 5 .........................................................

Correction period not expired.....................................................................................

Action deferred pending analysis of examination.......................................................

Date set for hearing.....................................................................................................

Started 

during 1965

1 No action to terminate 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.

Federal Deposit Insurance Corporation has this responsibility for 

all insured State nonmember banks.

Regulations of the Corporation implementing the Act became 

effective January 1,1965, and were published in the Federal Register of January 12, 1965. Designated Part 335, these regulations set 

forth procedures for meeting registration and reporting requirements. Forms and instructions provide itemized requirements for 

the content of each of the reports and statements specified in the 

Act: (1) the registration statement; (2) the annual report; (3) the 

current report; (4) the quarterly report; (5) the proxy statement; 

and (6) reports by directors, officers, and large stockholders of 

their transactions in the bank’s stock.

Because of certain built-in delays in the statute and the fact that 

almost all banks have a fiscal year that coincides with the calendar 

year, the new legislation had little impact upon banks until 1965. 

By April 30, 1965, the 120-day deadline as specified in the Act, 42 

insured State nonmember banks had filed registration statements 

with the Corporation. Later in the year, after being granted an extension of time, 34 additional banks filed registration statements, 

bringing to 76 the total number of such statements filed with the 

Corporation during 1965. Under its authority to exempt a bank from 

the registration and reporting requirements, the Corporation approved three of five applications for such exemption for a period 

of one year.

Since registration does not become effective until 60 days after 

the filing of the registration statement, and no additional reports 

are required until such date, periodic and supplemental reporting

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

was principally confined to the last several months of 1965. During 

the year, 20 current reports were filed by 17 banks, and 209 quarterly reports were received. Proxy soliciting material was filed by 

management for special meetings of stockholders in 13 cases. 

Initial statements of beneficial ownership of securities were received from 1,686 “ insiders,” or an average of almost 23 per bank, 

along with 438 statements of changes in beneficial ownership of 

securities.

Within the Corporation, administration of the statute and regulations is assigned to the Division of Examination. Registration statements and other reports are examined for compliance with the 

regulations and the standards of adequate disclosure. If the document is materially deficient, an amendment is requested. In the 

case of proxy solicitations, material is filed in preliminary form 

prior to the date of the proposed solicitation. Where preliminary 

material fails to comply with requirements, the responsible party 

is advised informally of necessary corrections prior to furnishing 

security holders with definitive proxy material. In neither situation 

does the review or clearance of material imply approval or certify 

the accuracy of any statement.

To make this information widely available to investors, statements and reports of banks under the Corporation’s jurisdiction 

are available for public inspection both at its main office in Washington and at each of the twelve Federal Reserve Banks. The 

statements and reports of State banks supervised by the Federal 

Reserve System also are available at these locations. Copies of all 

public filings are available in reasonable quantities free of charge 

from the Corporation.

Reports from banks. Reports obtained from banks antedate 

examination as a supervisory tool, and continue to provide valuable information useful both in supervision and in the analysis of 

economic conditions. Each year since 1934 the Corporation has 

obtained reports from insured banks regarding their assets, liabilities and income. Since 1935 it has also collected data concerning 

assets and liabilities of noninsured banks, and in 1947 was assigned responsibility for preparing and issuing data relating to all 

banks operating in the United States.

Until 1961 each insured bank submitted reports of condition at 

or near the middle and end of each year. Since the beginning of 

1961, and as a result of statutory changes in the method of computing deposit insurance assessments, each insured bank has filed 

four reports of condition a year. In 1965, reports were required for 

April 26, June 30, October 13, and December 31. Data from the 

mid-year and year-end reports are tabulated and, classified by 

State, are published separately by the Corporation.

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SUPERVISORY ACTIVITIES 21

Reports of income of all banks insured by the Corporation are 

submitted on a calendar year basis and, consolidated and classified in different ways, are published in the Corporation’s Annual 

Report. No information is received by the Corporation on the 

income of noninsured banks.

Tabulations of the assets and liabilities of both insured and noninsured banks, and data on the income of insured banks, will be 

published in the forthcoming full Annual Report.

Conferences of supervisors of State banks. The Corporation added 

a new dimension to its long history of cooperation with State 

supervisors of banks by inaugurating a series of conferences in 

mid-1964. At the first conference, in June of that year, the Corporation was host to supervisors of banks in the States comprising 

FDIC District 12. In the first half of 1965 two further conferences 

were held. At the one in February, the guests were State supervisors of banks in the States making up FDIC Districts 1 and 2. 

Another in May brought together supervisors of banks in the States 

comprising FDIC Districts 3, 6, 7 and 8. Attendance and other 

details concerning these conferences were included in the Corporation’s Reports to Insured Banks for June 30, 1964 and June 

30, 1965, respectively.

The series of conferences was continued on November 16-18,

1965 when officials of the Corporation met with bank supervisors 

and their senior staff aides from States in FDIC Districts 4 and 5. 

The discussions ranged over a variety of subjects, including proposed or pending legislation at both the State and Federal levels, 

developments in bank auditing, shifting patterns in assets and 

liabilities of banks, the outlook for branch banking and competition 

with other financial institutions. Through exchange of attitudes and 

information on these and other matters the Corporation believes 

it has contributed to better understanding among bank supervisors 

generally.

LEGAL DEVELOPMENTS

Federal legislation. In 1965 both the domestic and international 

operations of banks were the subject of Federal legislation. Measures pertaining to certain types of bank lending included Public 

Law 88-59, approved on June 30, 1965, which provides additional 

necessary assistance to victims of natural disasters under existing 

SBA programs. The act increases the maturity of Small Business 

Administration disaster loans from 20 to 30 years. It provides for 

a suspension of up to 5 years on the payment of principal and 

interest on disaster loans at the discretion of the Small Business 

Administration upon showing of need. If the disaster loan upon

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22 FEDERAL DEPOSIT INSURANCE CORPORATION

which a suspension is granted is a participation loan, SBA shall, 

at the request of the lender, (1) purchase the participating lender’s 

portion of the loan; or (2) in order to avoid default of the loan, 

make payments to the participating lender on behalf of the borrower during the suspension period.

The Housing and Urban Development Act of 1965 provides additional authorizations and funds to continue Federally assisted 

housing and urban development programs for 4 years and makes 

improvements affecting nearly every housing program. This act, 

Public Law 89-117, approved August 10, 1965, includes 11 titles 

and approximately 98 sections. Under Title XI, Section 24 of the 

Federal Reserve Act is amended, extending from 18 to 24 months 

the maximum maturity of construction loans made by commercial 

banks.

The Coinage Act of 1965 (Public Law 89-81) was approved on 

July 23, 1965. This act is intended to conserve the nation’s dwindling stock of silver by providing for minting 10- and 25-cent pieces 

containing no silver, and 50-cent pieces of 40 percent silver content. The act makes numerous changes in coinage laws to smooth 

the transition to the new coins. Under certain circumstances, the 

use of coins as security for loans may also be prohibited.

On August 28, 1965, the President approved Public Law 89-145 

to permit government agencies to draw a single check, representing payments to one or more persons, in favor of a financial institution used by such persons as a depository.

Federal legislation in 1965 included several measures relating 

to balance-of-payments transactions and conservation of the nation’s gold. Public Law 89-3, approved on March 3,1965, eliminated 

the requirement that Federal Reserve Banks maintain a gold certificate reserve of at least 25 percent against their deposit liabilities. A similar reserve requirement with respect to Federal Reserve 

notes was not affected.

The President signed Public Law 89-79 on July 21, 1965, extending for three additional years the provisions in sec. 19 of the Federal Reserve Act and sec. 18(g) of the Federal Deposit Insurance 

Act permitting domestic banks to pay interest on time deposits of 

foreign governments at rates differing from those applicable to 

domestic depositors.

Public Law 89-175, signed on September 9, 1965, established a 

program of voluntary agreements among banks and other financial 

institutions directed to the curtailment of the private flow of dollar 

funds and credit from the United States to foreign countries. Participants are given immunity from antitrust laws.

Rules and regulations of the Corporation. On December 7, 1965, 

Part 329 of the Corporation’s regulations was amended to conform

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LEGAL DEVELOPMENTS 23

with an amendment adopted by the Board of Governors of the 

Federal Reserve System providing for payment of a maximum 

permissible rate of interest of 51/2 percent per annum on certain 

deposits by national and other member banks. Section 329.6 was 

amended to permit insured State nonmember banks to pay a maximum permissible rate of 51/2 percent per annum, compounded 

quarterly, regardless of the basis upon which such interest may 

be computed, on any time deposit, and to pay a maximum permissible rate of 4 percent per annum, compounded quarterly, regardless of the basis upon which such interest may be computed, on 

any savings deposit.

Ruling of Commissioner of Internal Revenue. A revised method 

for computing annual additions to reserves for bad debts by banks 

for taxable years ending after December 31, 1964 was provided in 

a ruling by the Commissioner of Internal Revenue (Rev. Rul. 65-92, 

also released as Technical Information Release 707, March 15, 

1965). It superseded previous rulings issued December 8, 1947 

(mimeograph 6209, C.B. 1947-2, 26) and April 8,1954 (mimeograph 

54-55, Rev. Rul. 54-148, C.B. 1954-1, 60).

The 1947 ruling authorized a bank to use a 20-year moving average, including the taxable year, in determining annual additions to 

bad debt reserves which can be deducted from taxable income. 

For any portion of such 20-year period during which the bank was 

not in existence, the bank was authorized to use the average experience of other similar banks with respect to the same type of 

loans. The 1954 ruling gave a bank the alternative of computing its 

loss experience on the basis of any 20 consecutive years of its 

own experience after 1927.

The new ruling effective for 1965 is intended to minimize the 

differences in permissible reserves existing among banks under 

prior rulings. In lieu of using a loss experience factor determined 

on an individual basis, a bank is now allowed deductions for additions to its reserve for bad debts until the reserve equals 2.4 percent of loans outstanding at the close of the taxable year, subject 

to certain exceptions and limitations.

Text of statutes, regulations, and rulings. Pertinent provisions of 

the foregoing statutes, regulations, and rulings, along with a summary of significant State banking legislation, will be published in 

the full report to be released later.

ADMINISTRATION OF THE CORPORATION

Structure and employees. Management of the Corporation is 

vested in a Board of Directors consisting of three members, two 

of whom are appointed for six-year terms by the President, by and

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24 FEDERAL DEPOSIT INSURANCE CORPORATION

with the advice and consent of the Senate. One of the two Directors 

so appointed serves as Chairman of the Board. The Comptroller of 

the Currency (also a Presidential appointee) serves ex officio as 

the third member of the Board. Not more than two Directors may 

be members of the same political party.

Mr. K. A. Randall, Chairman of the Board, was appointed a 

Director on March 10, 1964. He was elected to his present position on April 25, 1965, after designation of Chairman Joseph W. 

Barr to become Under Secretary of the Treasury. Mr. Barr continued as Director until his resignation effective April 29, 1965. 

Mr. James J. Saxon, Comptroller of the Currency, was on the 

Board throughout 1965. The Board was returned to full strength 

by the appointment as Director of Mr. William W. Sherrill to a full 

term beginning March 4,1966.

Corporation officials are listed on page v, opposite an organizational chart of the Corporation. During the year a realignment of 

audit functions resulted in the elimination of the former Audit 

Division, and transfer of its responsibilities for the Corporation’s 

independent internal audit and liquidation audit to the newlycreated position of Auditor of the Corporation. The field personnel 

of the former Audit Division were transferred to the Assessment 

Branch of the Office of the Controller, and audit responsibilities 

in the examination area were assigned to the Examination Division.

In 1965 the increase of Corporation personnel totaled 58, consisting of 17 in the Washington office and 41 in the District offices. 

In the home office, the increase was spread among the Legal, 

Liquidation, Examination, and Research and Statistics Divisions. 

Outside of Washington, the increase occurred entirely in the 

Division of Examination field offices. Transfers of audit personnel 

were reflected primarily in the increase of Executive Offices employees and in the addition of field staff in the Office of the 

Controller. A distribution of the Corporation’s employees at the 

end of 1964 and 1965 is shown in Table 8.

Table 8. NUMBER OF OFFICERS AND EMPLOYEES OF THE FEDERAL 

DEPOSIT INSURANCE CORPORATION, DECEMBER 31,1964 AND 1965

Unit

Total

Washington

office

District and other 

field offices

1965 1964 1965 1964 1965 1964

T o ta l................................................. 1,446 1,388 363 346 1,083 1,042

Directors.......................................... 2 3 2 3 0 0

Executive Offices............................. 43 29 43 29 0 0

Legal Division.................................. 36 26 36 26 0 0

Division of Examination.................. 1,078 1,013 62 58 1,016 955

Division of Liquidation.................... 101 108 45 41 56 67

Division of Research and Statistics.. 72 65 72 65 0 0

Office of the Controller.................... 114 106 103 106 11 0

Audit Division.................................. 38 18 20

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ADMINISTRATION OF THE CORPORATION 25

From an average employment of 831 field bank examiners, 111 

left the employ of the Corporation in 1965. Forty-four of the examiners went to banks or to State or Federal supervisory agencies. 

For all employees, exclusive of temporary personnel, the turnover 

rate was 16 per 100, the same as in 1964. Among field bank 

examiners, who comprise the largest class of employees, the rate 

was 13 per 100. However, excluding several examiners who accelerated their retirement under Public Law 89-314, the turnover 

ratio was 12 per 100, again equal to the 1964 rate.

During the year, 148 temporary field liquidation employees were 

hired and 167 were separated. At year-end, the employment of 

temporary field liquidation personnel totaled 48. These temporary 

field personnel, who perform primarily clerical tasks, are appointed 

at the site of each bank liquidation and their services terminated 

as individual liquidations are completed.

Employee benefits and programs. Corporation personnel are 

covered under benefit plans generally available to Federal employees. These include retirement annuities, group life insurance, 

hospitalization and medical payments insurance, compensation for 

on-the-job injuries, unemployment benefits, and competitive leave 

allowances. In such of these programs as provide an option, 

upwards of 90 percent of the employees participate. The Corporation also provides facilities for an employees’ credit union; this 

is particularly helpful to examiners, who are prohibited by law 

from borrowing from insured banks.

For many years, the Corporation has had a program under 

which on-the-job training of examiners is supplemented by extensive educational courses. These consist of correspondence courses 

offered by the American Institute of Banking, graduate schools of 

banking at several leading universities, and supervisory agency 

schools conducted jointly with the Federal Reserve Board. The 

latter include schools for trainees and junior examiners, as well 

as training exercises in the fields of bank automation and trust 

department examinations. At the end of 1965, 95 percent of all 

examiners were enrolled under these various programs.

FINANCES OF THE CORPORATION

Assets and liabilities. Assets and liabilities of the Corporation 

on December 31, 1965, are presented in Table 9.

At the end of 1965, assets of the Corporation totaled $3,212 

million. United States Government obligations, valued at amortized 

cost, with accrued interest, comprised $3,190 million. Of the nearly 

$22 million remaining, nearly half consisted of the estimated net 

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26 FEDERAL DEPOSIT INSURANCE CORPORATION

Table 9. STATEMENT OF FINANCIAL CONDITION, FEDERAL DEPOSIT 

INSURANCE CORPORATION, DECEMBER 31, 1965

ASSETS

C ash .................................................................................................................

U. S. G overnm ent ob lig ations:

Securities at amortized cost (face value $3,171,999,000; market or redemption

value $2,985,975,804)..................................................................................

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

Assets acquired in receivership and deposit assum ption

tran sa c tio n s :1

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

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

when paid—see related liability2...............................................................

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

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

Assets purchased outright..............................................................................

Less reserves for losses

M iscellaneous ass e ts ......................................................................

Land and office building, less depreciation on building

Fu rniture, fixtures, and eq u ip m en t (cost $ 1 ,0 8 2 ,0 7 6 )..

Total assets

LIABILITIES AND DEPOSIT INSURANCE FUND3

Accounts payable and accrued lia b ilitie s .....................................

Earnest m oney, escrow funds, and collections held for

o th e rs ......................................................................................................

Accrued annual leave of em p loyees..................................................

Due insured banks:

Net assessment income credits available July 1,19664(See Table 11)............

Other assessment credits available immediately............................................

N et insured balances of depositors in closed insured banks

—see related a sset...........................................................................

To tal lia b ilitie s .......................................................................

D eposit insurance fu n d , net incom e accum ulated since

inception 5 (S ee Table 1 0 ).............................................................

Total liab ilitie s and deposit insurance fund

The following notes are an integral part of this statement.

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 3.

2 The amount reported under this caption does not include any portion of certain certificates of deposit carried on the 

books of some of the closed banks as deposits which are in litigation to determine whether they represent funds received 

by the banks in the usual course of business. If the courts find that all such certificates of deposit were acquired in the 

usual course of business, the holders would be entitled to recover the insured portion from the Corporation, amounting 

to about $3.8 million. The Corporation would in turn have a common claim against the banks' assets in like amount.

3 Capital stock was retired by payments to the United States Treasury in 1947 and 1948 pursuant to the Acts of August 

5, 1947 (61 Stat. 773) and June 29, 1948 (62 Stat. 1092), with total interest payments made thereon in 1950 and 1951, 

pursuant to the Act of September 21,1950 (64 Stat. 873).

4 Represents the portion of the Corporation’s net assessment income for 1965 which, pursuant to the Federal Deposit 

Insurance Act (12 U.S.C. 1817), shall be credited to assessments becoming due from insured banks after June 30, 1966. 

These credits in effect reduce insured banks' assessments for 1965 from the statutory rate of one-twelfth of 1 percent 

of assessable deposits to an effective rate of almost one-thirty-second of 1 percent of such deposits.

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

deposits and payment of expenses. On June 30,1965 the Fund amounted to 1.50 percent of insured deposits, estimated at 

$195.6 billion; and to 0.83 percent of total deposits in all insured banks, amounting to approximately $355.0 billion. In 

addition to this Fund, the Corporation is authorized to borrow from the United States Treasury, and the Secretary of the 

Treasury is authorized and directed to loan to the Corporation on such terms as may be fixed by the Corporation and the 

Secretary, not to exceed $3 billion outstanding at any one time, when in the judgment of the Board of Directors of the 

Corporation such funds are required for insurance purposes. No borrowiings have been made under this authorization.

NOTE: This statement does not include accountability for the assets and liabilities of either the closed insured banks 

for which the Corporation acts as receiver or I iquidating agent or those of the two wholly owned Deposit I nsurance National 

Banks in operation on December 31,1965. Periodic ana final accountability reports of its activities as receiver or liquidating 

agent are furnished by the Corporation to the courts, supervisory authorities, and others, as required. The operating 

deficits of the two Deposit Insurance National Banks, amounting to $74,877, are reflected in the Corporation's statement 

of income and deposit insurance fund.

$3,157,732,051

32,476,155

$ 20,691,811

777,182 

953,780 

1,741,348 

15,011 

$ 24,179,132 

14,600,500

$ 158,337,888 

13,712,295

3,753,929

3,190,208,206

9,578,632 

151,195 

8,040,515

_L

$3,211,732,478

1,101,175

209,279

1,268,909

172,050,183

777,182

$ 175,406,728

3,036,325,750

$3,211,732,478

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FINANCES OF THE CORPORATION 27

tion’s office building and site were valued at $8 million, and cash 

amounted to almost $4 million.

Liabilities totaled $175 million on December 31, 1965, and consisted almost entirely of net assessment income credits due insured 

banks. Credits not available immediately will be available July 1,

1966 for application against assessments then due.

The excess of the Corporation’s assets over its liabilities, representing its accumulated income or surplus, constitutes the deposit 

insurance fund. This fund, which comprises the Corporation’s 

basic resource for protection of depositors, amounted to $3,036 

million at the end of 1965. Further resources are available to the 

Corporation through its authority to borrow up to $3 billion from 

the United States Treasury whenever the Corporation’s Board of 

Directors adjudges such funds are needed for insurance purposes. 

This borrowing authority has never been used.

Income and expenses in 1965. A statement of the Corporation’s 

income and expenses in 1965, showing also the change in the 

deposit insurance fund for the year, is presented in Table 10.

Net income added to the insurance fund in 1965, after expenses, 

losses, and assessment credits, amounted to $192 million. Interest

Table 10. STATEMENT OF INCOME AND THE DEPOSIT INSURANCE 

FUND, FEDERAL DEPOSIT INSURANCE CORPORATION,

YEAR ENDED DECEMBER 31, 1965

In co m e:

Deposit insurance assessments:

Assessments earned in 1965......................................

Less net assessment income credits to insured banks

Adjustments of assessments earned in prior years...

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

Other income..............................................................

Total in co m e.............................................

Expenses and losses:

Administrative and operating expenses:

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

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 1965..........................................................

Adjustments appllicabe to banks assisted in prior years...........................

Non-recoverable insurance expenses incurred to protect depositors—net...

Total expenses and losses...............................................

N et addition to the deposit insurance fu n d — 1 9 6 5 ..................

Deposit insurance fun d, Jan uary 1, 1 9 6 5 .....................................

Deposit insurance fund, Decem ber 3 1 , 1 96 5 , net incom e

accum ulated since inception (S ee Table 9 and note 5 of

Table 9 ) ...................................................................................................

$260,497,027

158,336,297

11,834,062

763,813

3,065,924

2,009,040

$ 6,375,000 

1,698,441

$ 102,160,730

10,154 

$ 102,170,884 

112,278,146 

201,726

$ 214,650,756

$ 17,672,839

4,676,559

640,824

$ 22,990,222

$ 191,660,534

2,844,665,216

$3,036,325,750

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28 FEDERAL DEPOSIT INSURANCE CORPORATION

on United States Government securities, plus adjustments for portfolio changes, provided $112 million. Assessment income allocated 

to the Corporation amounted to $102 million. Operating expenses 

aggregated less than $18 million while insurance losses and 

expenses exceeded $5 million.

The statutory assessment rate of one-twelfth of 1 percent of 

assessable deposits would have yielded assessment income of 

$260 million in 1965. However, two-thirds of this amount, after 

deduction of the Corporation’s expenses and losses, was credited 

to insured banks, under further statutory provisions. This assessment credit, which amounted to $158 million in 1965, reduced the 

effective assessment rate in 1965 to approximately one-thirtysecond of 1 percent of assessable deposits. The determination and 

distribution of net assessment income in 1965 is shown in Table 11.

Table 11. DETERMINATION AND DISTRIBUTION OF NET ASSESSMENT 

INCOME, FEDERAL DEPOSIT INSURANCE CORPORATION,

YEAR ENDED DECEMBER 31, 1965

D eterm in atio n of net assessm ent incom e:

Total assessments which became due during the calendar year.... 

Less:

Administrative and operating expenses.......................................

Net additions to reserve to provide for insurance losses:

Provisions applicable to banks assisted in 1965...................

Adjustments to provisions for banks assisted in prior years.

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

Total deductions............................................................

N et assessm ent income for 196 5

D istribution of net assessm ent incom e, Decem ber 3 1 ,1 9 6 5 :

Net assessment income for 1965:

33% ^transferred to the deposit insurance fund......................................

66%% credited to insured banks..............................................................

T o ta l...........................................................................................

Allocation of net assessm ent incom e credit among insured

banks, Decem ber 3 1 ,1 9 6 5 :

Credit for 1965....................................

Adjustments of credits for prior years.

T o ta l............................

$ 6,375,000 

1,698,441

$158,336,297

1,591

$260,497,027

17,672,839

4,676,559 

643,183* 

$ 22,992,581

$237,504,446

$ 79,168,149 

158,336,297

$237,504,446

Percentage of total 

assessment 

becoming due in 

1965

60.782%

.001

$158,337,888 60.783%

1 Insurance expenses reported in Table 10 are net after applying a credit of $2,359, representing income not applicable 

to net assessment income.

Other funds at the disposal of the Corporation during 1965 consisted principally of funds arising from the redemption and sale 

of U. S. Government securities. These were reinvested, along with 

other income, in similar obligations of the United States. The

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FINANCES OF THE CORPORATION 29

sources and uses of all funds handled by the Corporation in 1965 

are shown in Table 12.

Income and expenses, 1934-1965. The cumulative income of the 

Corporation since its establishment reached $3,393 million at the

Table 12. SOURCES AND APPLICATION OF FUNDS, FEDERAL DEPOSIT 

INSURANCE CORPORATION, YEAR ENDED DECEMBER 31,1965

Funds provided by:

Net deposit insurance assessments................................................................................................ $102,170,884

112,153,659

611,577,953

9,464,007

10,958,893

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....................

Increase in assessment credits due insured banks........................................................................

Total funds provided...........................................................................................

Funds applied to:

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

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

Purchases of U. S. Government securities.......................................................................................

$846,325,396

$ 17,976,301 

9,347,021 

814,131,189 

Net changes in other assets and liabilities..................................................................................... 4,870,885

Total funds a p p lie d ............................................................................................. $846,325,396

end of 1965, as shown in Table 13. Almost two-thirds of it came 

from insurance assessments, but these have come to comprise a 

much smaller proportion of annual income in recent years. As the 

insurance fund grows larger, and holdings of U. S. Government 

obligations, in which it is invested, increase, income from these 

investments provides a steadily larger proportion of income.

Operating expenses, insurance losses and expenses, and interest paid on capital stock have required $357 million, or about 

10 percent of total income. The difference between total income 

and these expenses and losses comprises the deposit insurance 

fund.

The relationship of the insurance fund to the Corporation’s contingent liability, specifically, insured deposits, has long been of 

interest. Attention is focused on it particularly when proposals are 

made to increase the amount of insurance per depositor, or to 

curtail additions to the fund. The ratio of the fund to insured 

deposits has ranged between rather narrow limits during the Corporation’s 32 years of operation, as shown in Table 14; at the end of 

1965 it stood at 1.45 percent. By itself, of course, the ratio can 

neither prove nor disprove the adequacy of the fund. For on one 

hand it ignores the Corporation’s borrowing capacity; and on the 

other, our economy has yet to experience banking stresses which 

would seriously test the Corporation’s full resources.

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

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30 FEDERAL DEPOSIT INSURANCE CORPORATION

tion, was abolished in 1965, and its duties with respect to internal 

audit were transferred to the newly designated office of Auditor.

Table 13. INCOME AND EXPENSES, FEDERAL DEPOSIT INSURANCE 

CORPORATION, BY YEAR, FROM BEGINNING OF OPERATIONS, 

SEPTEMBER 11, 1933, TO DECEMBER 31, 1965,

ADJUSTED TO DECEMBER 31, 1965

(In millions)

Year

Income

Total

Deposit

insurance

assessments1

Investments

and

other

sources2

Total

1933-65... $3,393.1 $2,180.1 $1,213.0 $356.8

1965 214.6 102.2 112.4 24.1

1964 197.1 93.0 104.1 18.9

1963 181.9 84.2 97.7 16.4

1962 161.1 76.5 84.6 13.8

1961 147.3 73.4 73.9 14.8

1960 144.6 79.6 65.0 12.5

1959 136.5 78.6 57.9 12.1

1958 126.8 73.8 53.0 11.6

1957 117.3 69.1 48.2 9.7

1956 111.9 68.2 43.7 9.6

1955 105.7 66.1 39.6 9.0

1954 99.7 62.4 37.3 7.8

1953 94.2 60.2 34.0 7.3

1952 88.6 57.3 31.3 7.8

1951 83.5 54.3 29.2 6.6

1950 84.8 54.2 30.6 7.8

1949 151.1 122.7 28.4 6.4

1948 145.6 119.3 26.3 7.0

1947 157.5 114.4 43.1 9.9

1946 130.7 107.0 23.7 10.0

1945 121.0 93.7 27.3 9.4

1944 99.3 80.9 18.4 9.3

1943 86.6 70.0 16.6 9.8

1942 69.1 56.5 12.6 10.1

1941 62.0 51.4 10.6 10.1

1940 55.9 46.2 9.7 12.9

1939 51.2 40.7 10.5 16.4

1938 47.7 38.3 9.4 11.3

1937 48.2 38.8 9.4 12.2

1936 43.8 35.6 8.2 10.9

1935 20.8 11.5 9.3 11.3

1933-34... 7.0 (5) 7.0 10.0

Expenses and losses

Deposit 

Insurance 

losses and 

expenses

Interest 

on capital 

stock3

Administrative

and

operating

expenses

Net 

income 

added to 

deposit 

insurance 

fund4

$42.3

6.4

3.4

2.0

.1

1.6

.1

.2

$80.1

.1

.5

.3

.1

.1

.8

1.4

.3

.7 .6

.1 4.8

.1 5.8

.1 5.8

.1 5.8

.2 5.8

.5 5.8

.6 5.8

3.5 5.8

7.2 5.8

2.5 5.8

3.7 5.8

2.6 5.8

2.8 5.8

.2 5.6

$233.9 $3,036.3

17.7 190.5

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 —3.07

1 For the period from 1950 to 1965, 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 $1,614 million, equal to 58.5% of gross assessments.

2 Includes $9.3 million of interest and allowable return received on funds advanced by the Corporation in 162 rece ivership 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 31,1965.

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.

7 Deduction.

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FINANCES OF THE CORPORATION 31

Table 14. INSURED DEPOSITS AND THE DEPOSIT INSURANCE FUND,

1934-1965

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

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

1934 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.

In addition, an independent audit of the Corporation has been 

made each year since its establishment, first by private firms and 

later by the General Accounting Office. In the 1950 enactment of 

the Federal Deposit Insurance Act the Corporation recommended, 

and the Congress enacted, legislation providing that the financial 

transactions of the Corporation shall be audited by the General 

Accounting Office in accordance with the principles and procedures applicable to commercial corporate transactions and under 

such rules and regulations as may be prescribed by the Comptroller 

General of the United States.

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Table 15. DESCRIPTION OF EACH MERGER, CONSOLIDATION, 

ACQUISITION OF ASSETS OR ASSUMPTION OF LIABILITIES 

APPROVED BY THE CORPORATION DURING 1965

Case No. 1

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Security State Bank of Ephrata,

Ephrata, Washington 

(change title to Security Bank of 

Washington) 

to merge with

5,667 3 5

Douglas County Bank,

East Wenatchee, Washington

4,971 2

Sum m ary report by A ttorney General, O ctober 8, 1964

The Security State Bank, a small resident-owned banking institution located 

in Ephrata, with total assets of $5,616,000 and two branch offices, proposes to 

merge with the Douglas County Bank of East Wenatchee which has total assets 

of $4,373,000 and a single branch office. Neither of the participating banks has 

previously been involved in a merger or acquisition and direct competition 

between the two is practically nonexistent. While one independent bank will be 

eliminated by this merger, it is noted that Douglas County Bank has experienced 

operating difficulties and has considered merger with a large Seattle-based bank. 

Three such banks, the only competitors of the resulting bank, will suffer no 

conceivable competitive disadvantages.

We conclude that the proposed merger will not have a substantially adverse 

effect upon competition.

Basis fo r Corporation approval, January 7, 1965

This merger involves two relatively small locally-owned banks located in central 

Washington. Security operates its main office and two branches in Grant County 

and Douglas operates its main office and one branch in Douglas County. The 

main offices of the two banks are located 46 miles apart and the nearest offices 

of each are some 30 to 33 miles apart. The service areas are contiguous but 

do not overlap and there is little or no competition between the two banks which 

would be eliminated as a result of the merger. v

The two banks have been under the same principal management since 1960 

and are now commonly owned to a considerable degree. Although one independent bank will be eliminated, there will be no diminution in the number of 

banking offices and no impairment in service or convenience to the public should 

occur. Competition is provided by eight area offices of the three largest branch 

systems in Washington and the expanded resources and larger lending limits of 

the resulting bank should tend to increase, somewhat, competition with these 

banks. On a statewide basis, the resulting bank will hold only a fraction of one 

percent of deposits and loans and but 14.2 percent and 11.6 percent of deposits 

and loans, respectively, in the relevant service area. The proposed merger will 

enable better overall supervision of activities of the two banks, which are already 

closely related, and should result in improved and more efficient banking services 

for the community.

There is no tendency toward monopoly indicated and in view of the foregoing, 

the proposed merger is considered to be in the public interest.

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34 FEDERAL DEPOSIT INSURANCE CORPORATION

Case No. 2

Resources

/ jr .

Banking offices

thousands

of dollars)

In

operation

To be

operated

The Savings Society Commercial Bank,

Springfield, Ohio

(change title to The Springfield Bank)

10,604 3 4

to merge with

The First State Bank,

South Charleston

3,620 1

to acquire the assets and assume

liabilities of

The Springfield Savings Society of Clark

County, Ohio,

Springfield

27,326 3

Sum m ary report by A ttorney General, Decem ber 2, 1964

The conjunction of the Commercial Bank, the Savings Society, and the State 

Bank will result in one commercial bank in Clark County, Ohio, under the ownership and control of Transcontinental Investing Corporation through an intermediary 

Ohio Center Corp., another general purpose corporation.

Direct competition between the banks is not substantial and of little significance 

because of present common ownership in the Savings Society. The creation of a 

single entity will render more remote the possibility of eventual deconcentration in 

the area. The degree of existing concentration shown in the application indicates 

that the possibility of deconcentration might well be preserved.

It is considered that the potential effects on competition resulting from these 

multiple transactions will be adverse.

Basis fo r Corporation approval, January 22, 1965

The proposed transactions involve a merger of two commercial banks and the 

purchase of assets and assumption of liabilities of a mutual savings bank by the 

resulting merged bank. The mutual savings bank owns all of the common stock 

outstanding in the two commercial banks except for directors’ qualifying shares, 

and its three offices are shared by one of the commercial banks. Depositors of 

the mutual savings bank have approved the “ Agreement for purchase and Sale 

of Stock and Other Assets.” The mutual savings bank and one commercial bank 

are located in Springfield, Ohio, which is situated in the west-central sector of 

the State. The other commercial bank is located in South Charleston, 12 miles 

southeast from Springfield in an agricultural area.

The three banks involved are commonly controlled and managed and there 

will be no elimination of competition or increase in concentration of banking 

resources. The resulting bank will hold 22.8 percent of aggregate IPC deposits 

and 26.0 percent of aggregate loans held by all banks in the service area. It will 

be exceeded in size by a national bank in Springfield which holds 28.0 percent 

of aggregate IPC deposits and 28.8 percent of aggregate loans. The national 

bank is one of 22 banks affiliated with the BancOhio Corporation, a registered 

bank holding company, operating 68 offices throughout Ohio with aggregate 

resources exceeding $854,000,000.

A favorable finding has been made on each of the banking factors and on the 

competitive factor. The resulting bank, operating as a single unit, could more 

efficiently provide banking services than can the three banks operating independently, and the proposed transactions are concluded to be in the public interest.

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Resources

(in

thousands

of dollars)

Banking offices

Case No. 3 In

operation

To be

operated

Industrial Trust & Savings Bank,

Muncie, Indiana 

to merge with

20,814 3 4

Yorktown State Bank,

Yorktown

3,332 1

Sum m ary report by A ttorney General, N ovem ber 3 0 , 1964

If the proposed merger of Industrial and Yorktown is approved, Yorktown’s 

only office will be converted to a branch of the resulting bank. Yorktown’s share of 

IPC deposits and loans and discounts (less than 6 percent in either category), 

its size relative to that of its competitors (approximately 10 percent as large as 

its smallest competitor, Industrial), the location of a competing bank’s branch 

office in the same town as Yorktown, and the ownership of its entire capital 

stock by persons who are officials of Industrial all tend to dull Yorktown’s 

competitive vigor. Of the four banks listed as competing in the resulting bank’s 

service area, Yorktown is the only one without branch offices. Without branches in 

such a geographically large, but sparsely settled, service area, Yorktown’s 

capacity for competing for deposits and loans is limited. Moreover, at present, 

Merchants, the largest bank, is more than two times larger than American, the 

second largest, and the resulting bank would approximate the position held by 

American in IPC deposits and loans.

The proposed merger would not appear to have significantly adverse effects 

upon competition.

Basis for Corporation approval, January 27, 1965

The proposed merger involves two banks located 6 miles apart in the central 

and western portion of Delaware County, Indiana. Applicant operates its head 

office and two branches in Muncie, the county seat, which is located in an 

extremely rich agricultural area. Muncie is the location of a teachers college, a 

business college, a conservatory of music, and several large industries. State 

Bank operates its sole office in Yorktown, 6 miles west from applicant in a 

primarily agricultural area.

The respective trade areas overlap only to a minor extent. Direct competition is 

afforded State Bank by a branch of the American National Bank and Trust 

Company of Muncie and applicant is in direct competition with three offices of 

this bank and eight offices of another national bank in Muncie. It appears that 

there is little, if any, competition between the participating banks.

Applicant’s relative deposit position in the combined service area will not 

be elevated by the addition of State Bank’s deposits. The resulting bank will be 

the third largest with 20.6 percent of aggregate IPC deposits but applicant will 

move from third to second largest bank, based on the proportion of total loans 

held or from 19.2 percent to 21.0 percent. The increase in concentration is not 

substantial, 2.6 percent in IPC deposits and 1.8 percent in loans, and the resulting bank will be the smallest in the combined service area, based on IPC deposit 

size. The Merchants National Bank of Muncie with eight offices and 55.7 percent 

of the IPC deposits dominates that combined service area. Competition with the 

branch of American National Bank and Trust Company of Muncie in State Bank’s 

service area should be substantially increased under the proposal and there 

should be no discernible adverse effects upon competition in applicant’s 

service area.

The proposed merger will have no significant adverse effect upon overall 

competition, but will introduce expanded and improved banking services, especially to the Yorktown area, and is concluded to be in the public interest.

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Case No. 4

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Peoples Bank & Trust Company,

Owenton, Kentucky

4,765 1 2

to acquire the assets and assume

liabilities of

The First State Bank,

Monterey

758 1

Sum m ary report by A ttorney General, N ovem ber 3 0 , 1964

The proposed transaction will eliminate all competition between Peoples and 

First State, which are in communities 10 miles apart. The competition thus eliminated, however, does not appear to be critically significant. But the acquiring 

bank presently has 49 percent of the loans and 44 percent of the deposits in 

the service area; the proposed transaction would increase those percentages 

to 57 percent and 51.4 percent, respectively, in addition to decreasing the banking 

alternatives in the service area. It may also induce the second and third largest 

banks in the area to acquire the remaining two banks in order to compete 

successfully with the resulting bank.

However, because of the small size and location of the merging banks we do 

not feel that the proposed acquisition will have a significant adverse effect upon 

competition.

Basis for Corporation approval, February 2 3, 1965

This proposal unites the smallest with the largest of six banks in Owen County. 

Competition between these two banks is limited and the small size of State and 

its location in Monterey, a small farming community of 211 population, has 

restricted its competitive ability with other banks in the area. Any limited competition which may exist between the participating banks is largely eliminated through 

88 percent ownership of the common stock of State by officers of the applicant.

Owen County with a population of about 8,000 has six banks and the elimination 

of the smallest with its replacement by a branch of a larger bank will result in 

no diminution of banking offices and will have no significant competitive effects. 

The applicant will increase its holding of the area IPC deposits by less than 

6 percent.

The services which State has offered its customers in the past have been 

limited; as a branch of the larger applicant bank, it will afford broader and 

improved banking services to the public in Monterey. These services will include 

a wider range of types of loans and credit facilities, a larger lending limit, trust 

services, and savings accounts which State does not now provide. Also, State 

has managerial problems which the acquisition will correct.

No tendency toward monopoly is involved and in view of the benefits to be 

derived in the Monterey community, the transaction is considered to be in the 

public interest.

Case No. 5

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Industrial Bank of Commerce of Albany,

Albany, New York (change title to 

Community State Bank) 

to merge with

10,009 2 4

Industrial Bank of Schenectady,

Schenectady

13,189 2

Sum m ary report by A ttorney General, January 18, 1965

Industrial Bank of Commerce of Albany, Albany, New York (Albany Bank) is

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 37

the smallest of 11 banks in the city of Albany with deposits of $8,164,000 (about 

0.4 percent of total deposits of Albany banks).

Schenectady Bank is the smallest of six banks in the city of Schenectady with 

deposits of $10,780,000 (about 3 percent of total deposits of Schenectady banks).

Neither bank has had any prior merger or acquisition activity. Financial General 

Corporation is the owner of 94.1 percent of Albany Bank and 73.7 percent of 

Schenectady Bank. Prior to the filing of its application to merge, Albany Bank 

had applied to the New York State Banking authorities for approval of its plan 

of conversion from an industrial bank to a State bank under the name of 

Community State Bank. The resulting bank would bear this name.

Existing direct competition between the participating banks is very limited. They 

are located in sizeable cities 16 mles apart (Albany, populaton 129,726, and 

Schenectady, population 81,682). In addition, because of the relatively small size 

of the merging banks and the presence of several other much larger banks in 

each of the service areas, it does not appear that the proposed merger, if consummated, would have a significantly adverse effect upon competition.

Basis fo r Corporation approval, February 2 3 , 1965

This transaction involves the merger of a $13 million industrial bank into a 

$10 million industrial bank and the conversion of the resulting bank from industrial to commercial bank status under the title of “ Community State Bank.” 

Applicant operates its two offices in Albany, and Industrial operates its two 

offices in Schenectady, New York, with the closest offices located about 15 

miles apart. Each of the participating banks serves primarily the immediate area 

of their respective offices and there is virtually no competition between them 

which would be eliminated through this proposal. The resulting bank will have 

its main office and one branch in Albany and two branches in Schenectady.

The participating banks are by far the smallest when compared to other 

commercial and savings banks operating in Albany or Schenectady and the 

resulting bank will continue to be the smallest, holding but 2.4 percent and 1.8 

percent of the IPC deposits and loans, respectively, held by all commercial banks 

in the relevant service area. Although the resulting bank will be the only bank 

having offices in both Albany and Schenectady, there are many convenient 

competitive alternatives, all larger, in both cities and between them, and it does 

not appear that the proposed merger will alter the competitive picture to any 

significant degree.

The proposed merger and conversion which will enable the resulting bank, 

with its expanded resources and larger lending base, to provide broader services 

to the communities which it serves and which will have no significant effect on 

competition, is concluded to be in the public interest.

Resources

(in

thousands

of dollars)

Banking offices

Case No. 6 In

operation

To be

operated

First State Bank, Hubbard, Texas,

Hubbard, Texas 

to acquire the assets and assume

liabilities of

3,716 1 1

Malone State Bank,

Malone

763 1

Approved under emergency provisions. No report requested from the Attorney 

General.

Basis fo r Corporation approval, February 2 3 , 1965

The elimination of the substantial volume of cash items and out-of-territory, 

nonconforming loans classified loss and doubtful would exceed the capital structure and impair Malone’s deposits. Attempts by the owners of stock control to

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obtain additional financing or collection of the assets considered doubtful and 

loss were unfruitful, and the bank was faced with the threat of closing. Since 

the amount of deposit liabilities in excess of the insurance limit of $10,000 is 

moderate, the Corporation determined it to be in the public interest to make 

a loan to or purchase the unacceptable assets of Malone so a deposit assumption transaction could be effected with Hubbard. Texas law does not permit 

branching so the office at Malone will be closed; however, Hubbard is located 

only 9 miles away and management of that institution is familiar with the service 

area and customers of Malone through previous ownership of that bank.

Case No. 7

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Washington Mutual Savings Bank,

Seattle, Washington 

to consolidate with

463,341 12 15

Liberty Mutual Savings Bank,

Yakima

17,135 3

Sum m ary report by A tto rn ey General, D ecem ber 14, 1964

The proposed consolidation closely parallels the proposal of Washington 

Mutual to consolidate with Citizens Mutual Savings Bank of Spokane, approval 

of which was given by the Corporation November 12, 1964. Liberty Mutual, like 

Citizens Mutual, was a savings and loan association prior to its conversion to 

the status of a mutual savings bank preparatory to the proposed consolidation.

The lack of any substantial competition between the applicants, the strength 

of the remaining competition in Liberty Mutual’s service area, and the fact 

that the consolidation would increase only slightly the size of Washington Mutual 

would indicate that the adverse competitive effects of the proposal, in and of 

itself, may not be substantial. The fact that this proposal follows so closely, 

both in time and circumstances, the application of Washington Mutual to 

consolidate with Citizens Mutual, however, gives rise to the possibility that a 

series of such transactions may be contemplated by Washington Mutual as an 

avenue of expansion. Any such program, when carried on by this, the largest 

mutual savings bank west of the Mississippi, is a cause for concern. Accordingly, 

future merger transactions by Washington Mutual would appear to bear close 

scrutinization in order to prevent the elimination of potential competition on 

a wide scale.

Basis fo r Corporation approval, M arch 17, 1965

This transaction involves a mutual savings bank which is insured by the 

Federal Deposit Insurance Corporation and a state-chartered savings and loan 

association which is insured by the Federal Savings and Loan Insurance Corporation. Liberty Mutual does not and will not operate as a mutual savings bank, 

being presently in operation as Liberty Savings and Loan Association, Yakima. 

Because applicable State law does not provide for the consolidation of a mutual 

savings bank and a savings and loan association, the desired consolidation 

requires the prior conversion of the savings and loan association into a mutual 

savings bank. It is planned that the conversion and consolidation will be 

effected on the same date with a minimum of intervening time.

Washington Mutual, the largest of four savings banks in Washington, operates 

eight branches in the Seattle metropolitan area, two branches in Spokane and 

a branch at Pullman. An additional branch has been approved for Seattle but 

has not yet opened. Washington Mutual has enjoyed considerable success and 

is a primary competitor for mortgage loans and thrift deposit services in its 

service area. The consolidation will have no effect on competition in these 

banking fields in the present service area of Washington Mutual where it is in 

direct competition with 18 commercial or savings banks and 15 savings and 

loan associations in the Seattle area together with 4 savings and loan associations 

in the Spokane area.

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Liberty Savings and Loan Association is a relatively small association with 

its main office in Yakima, about 140 miles from Seattle; one branch in Grandview, 

about 190 miles from Seattle; and a branch in Kennewick, 230 miles from Seattle. 

In Yakima it is competitive with three savings and loan associations, and in 

Kennewick it is competitive wth five such assocations. The converting/consolidating association is competitive with four commercial banks in Yakima, two in 

Grandview, and five in Kennewick, with this competition including branches of 

banks in Seattle and Tacoma which have deposits ranging from $213 million 

to $1.1 billion.

At the present time, there is no mutual savings bank within 140 miles of any 

office of Liberty Savings and introduction of this form of financial competition 

to the areas served by the three offices of the association should be a beneficial 

addition to the competitive situation, as well as contributing significantly to the 

convenience of existing and potential mutual savings bank customers in these 

areas.

There is no tendency toward monopoly involved or adverse aspects relative 

to the statutory factors to be considered, and the consolidation is considered to 

be in the public interest.

Case No. 8

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Wright County State Bank, 3,695

Clarion, Iowa 

to acquire the assets and assume

liabilities of

Bank of Galt, 727

Galt

Sum m ary report by A tto rn ey General, D ecem ber 14, 1964

These two small banks presently compete with nine others of comparable size 

in serving the banking needs of rural Wright County, Iowa. Bank of Galt is a 

single office, owner-operated bank. The proposed merger would not significantly 

affect competition or increase concentration in this area. The proposed merger 

would have little, if any, adverse effect on competition in banking in Iowa but it 

does represent another addition by acquisition to an established holding 

company chain.

Basis fo r Corporation approval, M arch 18, 1965

The proposal involves the acquisition of a small noninsured bank, owned as 

a copartnership, by a subsidiary of an established bank holding company which 

controls 13 other Iowa banks. The participating banks are located in rural 

Wright County, Iowa, which is situated in the north-central section of the State. 

Applicant’s main office is located at Clarion, a residential and retail center for 

the surrounding agricultural area, and its branch at Rowan, 10 miles east from 

the main office, serves a small rural community. The noninsured bank is located 

in Galt, a residential hamlet in economic decline, 10 miles southeast from 

Clarion and 5 miles southwest from Rowan.

The service areas of the participating banks geographically overlap to some 

extent but the nominal volume of common deposits and loans and the variances 

in their respective loan portfolios indicates there is little, if any, competition 

between them which would be eliminated by the proposed transaction.

Applicant’s relative position as fourth largest among the banks in Wright 

County will remain unchanged as a result of the proposal. The resulting bank 

would hold 13.0 percent of aggregate deposits and 15.6 percent of aggregate 

loans and would be but slightly more than one-half of the deposit size of the 

largest bank, its local and primary competitor. The resulting concentration of 

deposits in the holding company within the overall service area, represented by 

the combined deposits of the resulting bank and the other subsidiary located

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14 miles southwest from Clarion, would also be exceeded, although modestly, 

by the competing Clarion bank. Competition in the area served by the bank at 

Galt should be enhanced by the introduction of expanded and improved banking 

services which will be offered by the resulting bank.

Favorable findings have been made on all banking factors and there should 

be no significant adverse effects on competition. The proposed transaction will 

bring to the residents of the Galt area improved banking services, the benefits 

of Federal deposit insurance, assurance of continued banking facilities for as 

long as a need exists and is concluded to be in the public interest.

Case No. 9

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Tioga County Savings and Trust Company, 8,754 

Wellsboro, Pennsylvania (change title 

to Commonwealth Bank and 

Trust Company) 

to merge with

The First National Bank of Galeton, 3,790 1

Galeton

The First National Bank of Lawrenceville, 1,719 1

Lawrenceville

Farmers and Traders National Bank of 2,710 1

Westfield,

Westfield

Sum m ary report by A ttorney General, January 27, 1965

Tioga County Savings and Trust Co. conducts commercial banking through one 

office located in Wellsboro, Pennsylvania. As of October 1, 1964 it had total 

deposits of $7,832,000 and total net loans and discounts of $4,483,000.

First National Bank of Galeton has one office located in the town of Galeton, 

Pennsylvania. As of October 1, 1964 it had total deposits of $3,292,000 and total 

net loans and discounts of $1,895,000.

First National Bank of Lawrenceville has one office located in the town of 

Lawrenceville, Pennsylvania. As of October 1, 1964 it had total deposits of 

$1,474,000 and total net loans and discounts of $928,000.

Farmers and Traders National Bank has one office located in Westfield, Pennsylvania. As of October 1, 1964 it had total deposits of $2,232,000 and total net 

loans and discounts of $1,254,000.

The applicant and other banks are located in small towns in Tioga and Potter 

Counties 20-34 miles apart. Both counties are primarily rural. There is little, 

if any, direct competition between these banks.

If the proposed merger is approved certain communities of the county would 

lose accessible alternative banking sources. The resulting bank, Tioga County’s 

second largest, would hold 32 percent of total IPC deposits in the county. Over 

75 percent of the total IPC deposits would be concentrated in the two largest 

banks in Tioga County and only four banks would remain in the county. However, 

in view of the size and location of the banks involved in the proposed merger 

it is our view that the effect on competition will not be significantly adverse.

Basis fo r Corporation approval, M arch 18, 1965

The proposed merger involves three banks in Tioga County, Pennsylvania, and 

one bank located 2 miles west of the county line in adjoining Potter County. 

Tioga County is situated in the north-central part of the State and its northern 

border forms part of the Pennsylvania-New York State boundary line. Applicant’s 

sole office is located in Wellsboro, the approximate geographic center of Tioga 

County, and none of the three other participating banks’ sole offices are nearer 

to applicant or each other than 19 miles.

Applicant is located in Wellsboro, an industrial and mountainous resort area, 

and the three other banks are located in Galeton (Potter County), a manufacturDigitized for FRASER 

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 41

ing and resort area; Lawrenceville, a residential town with its economy largely 

dependent upon industries in nearby areas of New York State; and Westfield 

which has one industry, a leather tanning plant, and is located in a farming area.

The distances between the participating banks, the rugged terrain, the lack 

of common depositors and borrowers and the negligible amount of business 

derived from each others’ service areas indicate there is little, if any, competition between them which would be eliminated as a result of the proposal.

Applicant will increase its deposit size significantly as a result of the proposed 

merger, but the resulting bank will be only fourth largest of all banks offering 

competition within the overall service area. Applicant’s share of IPC deposits 

held by all banks with offices in this area will increase from 8.7 percent to

16.4 percent, and the resulting bank will be roughly equal in deposit size to 

its major competitor, Northern National Bank and Trust Company, Wellsboro, 

Pennsylvania, which recently effected a purchase and assumption transaction 

involving three other Tioga County banks. The proposed merger should enhance 

competition and enable the resulting bank to compete more favorably with 

Nortnern National and its four branches. There should be no significant adverse 

effects in the areas of the Lawrenceville Bank and Westfield Bank, where the 

nearest competing banking offices are those of applicant’s major competitor, 

or in the Galeton Bank service area where the nearest competing bank is 19 

miles distant.

Favorable findings have been made on all banking factors, the overall effect 

on competition would not be unfavorable and, in view of the enlarged and 

expanded banking services to be available at each of the participating bank 

locations, the proposed merger is concluded to be in the public interest.

Resources

(in

thousands

of dollars)

Banking offices

Case No. 10 In

operation

To be

operated

Security State Bank,

Sheldon, Iowa 

to merge with

7,024 1 2

State Bank of Archer,

Archer

1,296 1

Sum m ary report by A ttorney General, January 12, 1965

The Security State Bank of Sheldon, Iowa (Security) has requested permission 

to merge with the State Bank of Archer, Archer, Iowa (State Bank). Security 

intends to operate the acquired banking facilities as a branch office.

Although the banks are located 8 miles apart, because of the rural nature 

of the area, their service areas overlap in large measure. Security presently is 

the largest bank in the area with approximately 29 percent of all deposits. 

State Bank is the smallest in the area with approximately 5 percent of all 

deposits. Security presently has twice the amount of deposits as its next largest 

competitor and as a result of the proposed merger its deposits will be three 

times as great as the third largest bank in the area.

In addition to Security, the Citizens State Bank is the only other bank located 

in the town of Sheldon. Citizens State Bank was not organized until 1962 and 

is about one-third the size of Security and will probably be most affected 

by the merger.

All actual and potential competition between the merging banks will be 

eliminated.

Thus the proposed merger would eliminate competition and further increase 

the size of the largest bank in the area and may place the smaller banks at a 

greater competitive disadvantage, thereby increasing the probability of further 

merger activity with a resultant adverse effect on competition.

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Basis fo r Corporation approval, M arch 25, 1965

State Bank of Archer is the smallest of nine banks presently competing in 

the relevant service area, holding, as of June 30, 1964, 4.2 percent of the 

aggregate deposits and 4.4 percent of the loans. Security State Bank is the 

largest, holding almost one-fourth of the aggregate deposits and 22.1 percent 

of the loans. Following the merger, it will hold 29.0 percent and 26.5 percent, 

respectively, in each category, thereby extending its already largest position. 

It will be a little more than twice the size of the next two largest banks among 

eight remaining in the area and more than three times the size of one other bank 

in Sheldon. However, the seven remaining competing banks are well established 

and have developed sufficient deposit volume and earning assets to provide 

effective competition to Security in their respective immediate service areas. 

There are no other banks in Archer and there will be no reduction in the number 

of banking offices because State’s sole office will be continued as a branch 

of Security.

The service area of State lies within the larger service area of Security and 

there are no banks or other financial institutions intervening. The two banks are 

located about 12 miles apart. Consequently, there is overlapping of the service 

areas, although that of State extends mostly northeastward from Archer where 

President Sterling Archer of State and his family have extensive land holdings, 

rather than northwestward toward Sheldon. The evidence indicates that the 

present deposit and loan volume of State has been maintained only because of 

Mr. Archer’s strong influence and popularity in this area northeast of Archer. 

The main effect of the merger will be to eliminate one small independent unit 

bank and substitute in its place a branch of Security; however, numerous banking choices will remain which are easily accessible to the public.

Because of health reasons, President Archer of State desires early future 

retirement and in the absence of a qualified successor, the bank will be left 

with a management succession problem. Archer is a small declining rural 

community (population 200) with poor future prospects and it is unlikely that 

a bank the size of State could attract a qualified executive officer from outside 

its present personnel ranks. The merger will correct this deficiency.

The loan limit of State is but $20,000, while that of Security is $60,000 and 

that of the resulting bank will be $101,000. Many of the business people of the 

Archer area, especially farmers, must travel to other points to satisfy their 

credit needs. Consequently, the greater resources and larger capital of Security, 

along with its stronger management staff and personnel, will permit expanded 

services in the Archer Community, and a wider variety of loans will be made 

available to the public. As it now stands, almost 90 percent of State’s loans are 

represented by loans to farmers. In addition, as a result of the merger, the public 

in the Archer service area will be assured of continued local banking facilities 

inasmuch as a branch of Security can be sustained more profitably on a relatively small deposit volume than can the unit State bank.

There is no tendency toward monopoly involved and in view of the foregoing, 

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

Case No. 11

Resources

fin

Banking offices

vjn

thousands

of dollars)

In

operation

To be

operated

Rumford Bank and Trust Company,

Rumford, Maine 

to acquire the assets and assume

liabilities of

12,895 4 6

Rangeley Trust Company,

Rangeley

2,467 2

Sum m ary report by A ttorney General, February 17, 1965

The proposed acquisition of the Rangeley Trust Company by Rumford Bank 

and Trust Company would consolidate the only two banks headquartered in

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 43

this area of west-central Maine. Although the two banks are located some 35 

miles apart, there are no other banking institutions in the area between them, 

nor are there any banks between Rumford and Phillips, 20 miles to the northeast 

where Rangeley Trust Co. has a branch.

However, in view of the relative small size of the merging bank and the lack 

of significant competition between the merging banks, the effect on competition 

does not appear to be significantly adverse.

Basis for Corporation approval, M arch 2 5, 1965

Applicant, an insured commercial bank located in Rumford, Maine, proposes 

to acquire the assets and assume the liabilities of a small noninsured trust 

company headquartered in Rangeley, 50 miles distant. The banks are located in 

the west-central section of the State, a mixed agricultural, industrial and recreational area.

The closest operating offices of the two banks are 34 miles apart. There are 

no banking offices intervening but the terrain is mountainous and sparsely 

populated and neither bank holds a significant amount of business which 

originates in the other’s service area. There is virtually no competition between 

the participating banks which would be eliminated by the proposed transaction.

Applicant’s only local competitor is a branch of a bank which operates 24 

offices in southern Maine and is six times larger than applicant in terms of 

total resources. The noninsured trust company’s closest competitor is a noninsured mutual savings bank, 16 miles distant from its branch and 43 miles from 

the main office. Two commercial banks, each roughly twice the IPC deposit size 

of the trust company, also serve the latter’s trade area. The proposed transaction 

should have no significant effect on competition in the combined service area 

and should enhance competition in the trust company’s service area.

The banking and competitive factors requiring consideration have been 

determined to be favorable to the proposal and, in view of the benefits of 

Federal deposit insurance which will become available to the residents of the 

Rangeley area and the improved and more adequate lending services which 

the larger, well-managed applicant bank will introduce, the proposed transaction 

is concluded to be in the public interest.

Case No. 12

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

The South Omaha Bank,

Omaha, Nebraska (change title to Center 

Bank, and move head office within Omaha 

from 4840 South Twenty-fourth Street to 

4131 Center Street) 

to acquire the assets and assume

liabilities of

9,848 2 1

The Center Bank,

Omaha

16,916 1

Sum m ary report by A ttorney General, February 1, 1965

South Omaha Bank is an affiliate of Northwest Bancorporation, a registered 

bank holding company, which also controls two other banks in Omaha, one 

of which is the second largest in that city.

The banking industry in Omaha is highly concentrated, the three largest 

banking interests accounting for 87 percent of both loans and deposits. The 

proposed transaction would increase this figure to over 89 percent. Such increase 

when viewed in the context of this highly concentrated area is extremely significant. As the Supreme Court has stated, if “ concentration is already great, the 

importance of preventing even slight increases in concentration and so preserving the possibility of eventual deconcentration is correspondingly great.” 

United States v. Philadelphia Nat’I Bank, 374 U. S. 321, 365, n. 42.

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44 FEDERAL DEPOSIT INSURANCE CORPORATION

The proposed transaction would also eliminate present and future competition 

between Center Bank and the Banco affiliates. According to the map submitted by 

the applicants, Center Bank derives 15 percent of its deposits from the area 

immediately surrounding U. S. National’s home office. That Center Bank is 

a significant factor is unquestioned. The application states, “ The Center Bank 

has had unusual growth since its opening in 1955, leading all banks in the Omaha 

area in 1957.” (p. 12)

Consummation of the proposed transaction will appreciably enhance Banco’s 

favorable competitive position in Omaha since its three banks will be located in 

the three most economically significant parts of the city.

In our *view, approval of the proposed transaction would result in serious 

adverse competitive effects.

Basis for Corporation approval, M arch 2 5, 1965

The proposal involves two banks located in Omaha, Nebraska, reportedly 

the world’s largest livestock and meatpacking center. Applicant, a subsidiary 

of Northwest Bancorporation which is a registered bank holding company, would 

acquire the assets and assume the deposit liabilities of Center, a nonaffiliated 

bank. Prior thereto in a similar transaction, which recently has been approved 

by the Comptroller of the Currency, applicant’s assets and deposit liabilities 

would be acquired and assumed by a national bank in Omaha, also a subsidiary 

of the holding company. Applicant will retain its charter and, under the subject 

proposal, will move to Center’s location, operate under Center’s present management, as a subsidiary of the holding company, with essentially the same asset 

structure and identical deposit liabilities as Center presently owns.

The subject proposal will not result in significant elimination of competition 

between the participating banks or between Center and other affiliates of the 

holding company since competition is reportedly as strong and vigorous between 

affiliates as with nonaffiliated banks. The proposed transaction will not increase 

the concentration of banking resources with respect to the participating banks 

and the holding company will not increase the number of its affiliated banks 

but will control an additional 3.0 percent of aggregate IPC deposits and 2.4 

percent of aggregate loans in Omaha. The largest Omaha bank holds 38.5 percent of aggregate IPC deposits and the holding company will control less than 

30 percent of such deposits. Under the subject proposal there will be no elimination of a banking office, the transaction being the substitution of the charter 

of one bank for that of another.

Favorable findings have been accorded all banking factors and it is concluded 

that the proposed transaction, which will have no material effect on competition, 

is in the public interest.

Resources

(in

thousands

of dollars)

Banking offices

Case No. 13 In

operation

To be

operated

Bank of Sonoma County,

Sebastopol, California 

to merge with

Sebastopol National Securities Company,

Sebastopol

17,779

358

3 3

S um m ary report by A ttorney General, M arch 31, 1964

This merger which was consummated on June 18, 1963 had no significant 

adverse effect on competition, in our opinion, because Sebastopol National 

Securities Company was a holding company whose only significant investment 

was its ownership of all the stock of Bank of Sonoma County. The Securities 

Company was not engaged in the banking business.

Basis fo r Corporation approval, April 1, 1965

This transaction involved the merger of a parent holding company into a

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 45

bank whose stock was the holding company’s chief asset, and was effected 

because the reasons for which the holding company was organized were no 

longer operative. The holding company was not engaged in the banking business 

and the merger had no significant effect on the condition of the bank or upon 

competition. The transaction, which eliminated a form of ownership which was 

obsolete and expensive, was concluded to be in the public interest.

The proposal will eliminate one small affiliated bank and the limited competition it provides but in view of the declining population trend in evidence for 

the area it is believed that two banks of comparable size in Centerville can 

adequately serve the banking needs of the community. Moreover, the resulting 

bank, with its expanded resources and larger lending limit, and which will 

erect new and modern banking quarters, including drive-in and off-street parking 

facilities, will be better able to provide improved banking services to the public. 

There will still remain an alternative source to the public for both commercial 

banking and trust services.

There is no tendency toward monopoly involved, and in view of the benefits 

to be derived from the merger without any unfavorable competitive effects, it 

is concluded that the proposal is in the public interest.

Case No. 14

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Iowa Trust and Savings Bank,

Centerville, Iowa (change location 

of head office within Centerville 

from 300 North 12th Street to 200 

North 10th Street) 

to merge with

The First National Bank of Centerville,

Centerville

6,036

4,741

Sum m ary report by A ttorney General, Decem ber 14, 1964

These two banks have been under common ownership and management for 

68 years, doing business in offices one block apart in Centerville, serving 

Appanoose County, Iowa. The proposed merger would merely unite them under 

one roof in a new building, enabling the resulting bank to offer more modern 

banking services to its customers. Two other presently competing banks in the 

county are comparable in size and strength to the resulting bank. Since the 

merger would neither eliminate competition between the applicants nor give 

them any additional substantial advantage over their competitors, the resulting 

effect on competition would not be adverse except to the degree that by the 

union the opportunity for the development of any meaningful competition between 

the units will be permanently foreclosed.

Basis fo r Corporation approval, April 1, 1965

This proposal involves the merger of two banks which have been commonly 

owned and managed for many years. The main offices of the participating banks 

are located about one block apart in Centerville and the service area of each 

is confined primarily to Appanoose County, Iowa. Census reports indicate that 

the populations of both Centerville and Appanoose County have been in a 

declining trend for the past two decades.

Applicant, which is now the second largest, would become the largest of 

the three banks in Centerville and after the merger would hold more than half 

the IPC deposits in the county but less than half the loans. It would not be 

significantly larger than its principal competitor, however, which would hold 

over 45 percent of the IPC deposits and over 56 percent of the loans. Because 

of the existing close relationship of the participating banks, there is no effective 

competition between them which would be eliminated and the investigation 

indicates the merger would not alter the competitive situation in the area to any 

significant degree.

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Case No. 15

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Kendall State Bank,

Valley Falls, Kansas 

to consolidate with

The Citizens State Bank,

Valley Falls

2,947

2,060 1

Sum m ary report by A ttorney General, M arch 2, 1965

Kendall and Citizens are the only two banks competing in the Valley Falls, 

Kansas area, and are located a short distance from each other. The application 

admits that the service areas of the two banks are the same. Kansas is a 

unit banking State, and the nearest banks to Valley Falls, Kansas are 12 miles 

away. Thus, approval of this application would eliminate the competition between 

Kendall and Citizens, and, in addition, would result in Kendall’s being the only 

source of commercial banking services in the Valley Falls, Kansas area. The 

proposed consolidatiaon would appear to have an adverse effect upon competition in the Valley Falls, Kansas area.

Basis for Corporation approval, April 15, 1965

The proposal involves two independent banks located less than one block 

apart in Valley Falls, Kansas. The town is a small community situated in a 

fairly stable agricultural area.

The participating banks serve the same trade area but the aggregate volume 

of common deposits and loans is not significant. Interest rates, service charges 

and general services offered the public are similar and, reportedly, there is 

very little competition between them.

The applicant bank will substantially increase its share of the aggregate IPC 

deposits and loans owned by all banks located in the overall service area but 

the resulting concentration of banking resources will not be disproportionate. 

The resulting bank would hold 16.2 percent and 17.9 percent of the aggregate 

IPC deposits and loans, respectively, and would be the second largest bank 

in the area. The nearest competing bank is located 12 miles from Valley Falls, 

beyond the ten-mile radial area from which applicant derives 80 percent of its 

deposit volume. There should be no significant adverse effects on competition 

in the overall service area as a result of this proposal.

The proposal will eliminate a banking source in Valley Falls but should cause 

no inconvenience because of the proximity of the existing banking offices, and 

the resulting bank will be able to meet the larger credit requirements of the 

area and provide certain additional banking services.

The banking and competitive factors requiring consideration are determined 

to be favorable to the proposal, and in consideration of the larger lending 

capacity and additional conveniences which are planned to be offered by the 

resulting bank, the proposed consolidation is concluded to be in the public 

interest.

Case No. 16

Resources

( in

Banking offices

U n

thousands

of dollars)

In

operation

To be

operated

The Farmers & Merchants Bank,

Aiken, South Carolina 

to acquire the assets and assume

liabilities of two branches of

12,945 2 4

The Citizens and Southern National Bank

of South Carolina,

Charleston

1,727* 22

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Sum m ary report by A ttorney General, M arch 2, 1965

Farmers & Merchants, the largest local bank In Aiken, South Carolina, 

serving an area encompassing the towns of Graniteville and Langley, 6 and 

8 miles from Aiken, respectively, proposes to acquire the assets and assume 

liability to pay the deposits of two branch offices of the Citizens and Southern 

National Bank of Charleston, such branches being located at Graniteville and 

North Augusta, South Carolina. The total deposits of the branches are $1,669,000 

of which an estimated $1,200,000 is deposited at the Graniteville branch. There 

is some direct competition between the acquiring bank and the branch at 

Graniteville due to the proximity of their respective offices, but very little, if any, 

competition between the acquiring bank and the branch at North Augusta, which 

is 18 miles from Aiken.

If the acquisition is consummated, there may be a slight adverse effect on 

competition in the Aiken-Graniteville service area by reason of some elimination 

of competition and increase in concentration. There would be no adverse effect 

in the North Augusta area, however, where the result would be the substitution 

of a branch of the largest local bank in Aiken, South Carolina, for a branch 

of the State’s second largest bank.

We conclude that the proposed acquisition would not have a significant adverse effect upon competition in the two areas.

Basis fo r Corporation approval, April 15, 1965

The Graniteville and North Augusta branches of Citizens and Southern operated as the main office and branch of an independent bank for many years 

prior to their acquisition by Citizens and Southern on May 23, 1964 and, both 

as an independent bank and branches of Citizens and Southern, have provided 

convenience to the public and served its needs. Citizens and Southern, which 

has operated these branches less than one year, now expresses a desire to 

dispose of them (because they are too far removed from that bank’s principal 

service areas) to Farmers & Merchants, a local Aiken County bank, in order 

that these banking facilities can be continued. Farmers & Merchants is a progressive bank which can provide continuance of adequate banking services to 

the public. It is a relatively small bank which faces strong competition from three 

branches of State Bank and Trust Company (two in Aiken and one in Langley), 

the State’s fourth largest bank, and one branch in Aiken of The South Carolina 

National Bank of Charleston, by far the State’s largest bank. The latter also 

operates a branch in North Augusta.

There is no tendency toward monopoly involved and the acquisition will 

have no significant effect on competition, other than to increase but slightly 

the size of Farmers & Merchants and expand its service area slightly through 

two branch locations. It is concluded that the purchase and assumption transaction would be in the public interest.

Case No. 17

Resources

fin

Banking offices

U n

thousands

of dollars)

In

operation

To be

operated

Dauphin Deposit Trust Company,

Harrisburg, Pennsylvania

138,117 11 15

to merge with

Lemoyne Trust Company, 29,045 4

Lemoyne

Sum m ary report by A ttorney General, M arch 2 2 , 1965

The Dauphin Deposit Trust Company has total assets of $138,138,000 and 

conducts commercial banking through eleven offices, nine of which are located 

throughout the city of Harrisburg and surrounding suburbs east of the Susquehanna River, and through two offices located in Carlisle, Pennsylvania, which is 

18 miles west of the city of Harrisburg. Since 1955 this bank has acquired seven

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48 FEDERAL DEPOSIT INSURANCE CORPORATION

offices as a result of five mergers and has established three de novo branch 

offices.

The Lemoyne Trust Company has total assets of $29,045,000 and conducts 

commercial banking in Lemoyne, Pennsylvania, and the adjoining town of Camp 

Hill, Pennsylvania. Lemoyne is located on the west bank of the Susquehanna 

River, and the main office of the Lemoyne Trust Company is located across the 

river about a mile-and-one-half west of the main office of the Dauphin Deposit 

Trust Company. This bank has four offices, none acquired by merger.

There is direct competition between the banks and in view of the ability of 

each to establish competing branches, there is a possibility of considerably 

more competition. Dauphin Deposit Trust Company now has an application 

pending to establish a branch office about 5 miles west of the Camp Hill office' 

of the Lemoyne Trust Company.

The merger of Dauphin and Lemoyne will result in the elimination of direct, 

albeit limited, competition between the merging banks. Further, and more important, the merger will continue and perhaps aggravate an already excessive trend 

toward concentration in the Harrisburg-Lemoyne area by merger and acquisition. 

The primary service area affected, the Lemoyne, Pa. area, is already highly concentrated in six banks— the proposal will reduce the number to five. In the 

Harrisburg-Lemoyne area, commercial banking is now concentrated in seven 

banks and the proposal will eliminate one of these. Finally, as a result of the 

proposal, the two largest banks, one of which is the acquiring bank, will possess 

68 percent of the Lemoyne area deposits and 66 percent of the HarrisburgLemoyne area deposits. Thus the proposal, if consummated, would have a 

seriously adverse effect on competition.

Basis fo r Corporation approval, April 2 8, 1965

The proposed merger will combine the $138 million applicant bank, located in 

Harrisburg, Pennsylvania, and Lemoyne Trust, a $29 million bank headquartered 

in Lemoyne, 1.5 miles west and across the Susquehanna River from applicant’s 

main office. None of applicant’s 10 branches are closer to any of Lemoyne 

Trust’s 3 branches than their respective main offices.

An analysis of the participating banks’ deposit and loan accounts indicates 

each serves a definite area or areas with a low degree of overlapping and a 

negligible amount of common accounts. There is only minor competition between 

the merging banks which would be eliminated by the proposal.

Applicant is the second largest bank, in terms of total IPC deposits, which 

operates offices in the overall service area, and both merging banks face their 

major competition from the largest bank which operates 5 branches in Harrisburg and one branch in Camp Hill, 1 mile from Lemoyne Trust’s nearest 

office. The resulting bank will hold 25.4 percent of the aggregate IPC deposits 

represented in the combined service area compared to 30.3 percent owned by 

the largest and principal competitor.

Lemoyne Trust, in addition to competition from the largest area bank, is faced 

with competition from two other larger banks operating seven offices in its service 

area as well as from large Pittsburgh, Philadelphia, and New York banks which 

regularly solicit customers in this area.

The proposed merger will further, to a small degree, the concentration of banking resources in the three largest banks which presently own an aggregate of

70.1 percent of the IPC deposits. However, applicant’s competitive position will 

not be significantly enhanced and competition should be stimulated in Lemoyne 

Trust’s service area by the introduction of improved and expanded banking 

services which the applicant can offer.

The proposed merger, while it will nominally increase the concentration in the 

three large area banks, will not, of itself, have a significantly unfavorable effect 

on competition; will combine two banks for which all banking factors have been 

determined to be favorable to the proposal; and in view of the additional and 

improved services in the forms of data processing, broader trust services, larger 

lending limit, and an improved and aggressive banking staff familiar with all 

phases* of banking which will be introduced to the Lemoyne Trust service area, 

the proposed transaction is concluded to be in the public interest.

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Resources

(in

thousands

of dollars)

Banking offices

Case No. 18 In

operation

To be

operated

Southern Bank and Trust Company,

Greenville, South Carolina 

to merge with

19,477 6 7

Bank of Clover,

Clover

3,179 1

Sum m ary report by A ttorney General, M arch 16, 1965

The banking trend in South Carolina is experiencing a conspicuous trend 

toward concentration, with the four largest banks accounting for 70 percent and 

60 percent, respectively, of the State’s total loans and deposits. The proposed 

merger, which is the second such transaction by the Southern Bank in recent 

months, would contribute to that general trend. In assessing the competitive 

aspects of the proposed merger three geographic areas are relevant. The merger 

would have its most noticeable effect in the area now served by the Clover Bank, 

where the combined deposits of the three remaining banks would total only 

one-third of the amount of deposits of the resulting bank. In the Rock Hill area, 

which is now served by one branch of the Southern Bank and three branches of 

both the Rock Hill National Bank and the Citizens and Southern National Bank, 

the impact of the proposed merger would be much less noticeable since the 

competitive positions of the banks presently located in that area would not be 

appreciably altered. In the Greenville area, the anticompetitive effects of the 

merger would likewise be insignificant, as Southern Bank, South Carolina’s 14th 

largest bank, would still be faced with competition from branches of that State’s 

2nd largest bank. We therefore feel that the proposed merger would not have 

significant anticompetitive effects.

Basis for Corporation approval, M ay 6, 1965

The proposal would merge a small unit bank in Clover, South Carolina into a 

moderately large bank, Southern, headquartered in Greenville, 90 miles distant. 

Southern operates six offices and none are closer to Clover Bank than 22 miles. 

The respective service areas do not overlap and no competition between the 

participating banks will be eliminated.

Southern’s service area is dominated by two large banks which operate 

branches in Greenville. The two banks hold, in the aggregate, more than 80 

percent of the total deposits owned by the banks operating offices in Southern’s 

service area. The third largest bank is headquartered in Greenville and is more 

than twice the deposit size of Southern. Clover Bank’s only local competitor, 

located two blocks distant, owns more than 94 percent of the total deposits of 

all banks operating in the Clover area. The increase in Southern’s resources will 

be nominal and should have no significant competitive effects in Southern’s 

service area. The small Clover Bank will be replaced by a branch of a moderately large bank which should enhance competition, to some degree, with the 

substantially larger competitor in Clover.

All banking factors are favorable to the proposal which will have no significant 

competitive effects, and in view of the improved banking services that the larger 

resulting bank should be in a position to offer in the Clover area, the proposed 

merger is concluded to be in the public interest.

Case No. 19

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

The Delaware County Bank, 8,786 2 3

Delaware, Ohio

to merge with

The Bank of Galena Company, 1,112 1

Galena

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

Sum m ary report by A ttorney General, April 2, 1965

The Delaware County Bank, Delaware, Ohio, an independent bank with its 

head office and drive-in facilities at the seat of Delaware County, proposes to 

acquire by merger The Bank of Galena Company, Galena, Ohio, a small unit 

bank 13 miles southeast of Delaware. The principal competitor of The Delaware 

County Bank is First National Bank, a member of the BancOhio System. In view 

of the strong competitive position of the competitor of Delaware Bank in its 

own service area and of the insufficient credit services presently rendered in 

the Galena Bank service area, it is believed that the impact of the proposed 

merger upon banking competition in the two service areas will not be adverse.

Basis for Corporation approval, M ay 13, 1965

Both the applicant and Galena Bank face their major competition from affiliates of BancOhio Corporation, a registered bank holding company, which controls one bank in Delaware, about twice the size of the applicant. The latter 

bank has an application pending to merge with a bank in Sunbury, about two 

miles from Galena Bank which is its closest competitor. There is no significant 

competition which will be eliminated as a result of this proposal and the substitution of a branch of the applicant in place of the unit Galena Bank will result 

in improved banking services to the Galena community. In view of existing competition there is no tendency toward monopoly involved and it is concluded that 

the proposed merger is in the public interest.

Case No. 20

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

The Bank of Prince William,

Woodbridge, Virginia 

to merge with

15,104 7 9

Guardian National Bank of Fairfax County,

Springfield

3,002 2

Sum m ary report by A ttorney General, April 12, 1965

The application shows that in the service area of the main office of Guardian 

National Bank of Fairfax County (Guardian), The Bank of Prince William (applicant bank), which is a subsidiary of Virginia Commonwealth Corporation, a 

registered bank holding company, has no current branch. There are, however, 

three competing banks, to wit: Mt. Vernon National Bank, Springfield branch, 

owned by The First Virginia Corporation, a holding company; the First and 

Citizens National Bank, Springfield branch, owned by another holding company 

in the State, United Virginia Bankshares, Incorporated; and The Northern Virginia 

Bank, an independent bank, with its main office in Springfield, each larger than 

the resulting bank.

The application further shows that in the service area of the authorized branch 

of Guardian at the Lee Plaza shopping center, the applicant bank has no current 

branch. However, there is competition from two branches of the aforesaid Mt. 

Vernon National Bank, to wit: The Jefferson Manor branch and the Beaconfield 

branch.

The principal effect of the proposed acquisition will be that the applicant bank 

will enter the service areas of Guardian for the first time.

While one more independent bank in Virginia will be eliminated by the proposed merger, it would appear that the acquisition of Guardian by the applicant 

bank will not appreciably enhance the size or competitive power of Virginia 

Commonwealth Corporation, the holding company which owns the acquiring 

bank. Except for the increasing domination of the Guardian service areas on the 

part of banks controlled by bank holding companies, the proposal would not 

appear to have more than a slight adverse competitive effect in the service areas 

involved.

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Basis for Corporation approval, M ay 14, 1965

This merger would combine a relatively new bank which has been in operation for only about one year, and which presently operates two offices in Fairfax 

County, with a well-established bank presently operating seven offices, all of 

which are located in Prince William County. The two banks are located 9 

miles apart, their service areas do not overlap, and there is virtually no competition between them which would be eliminated by this proposal.

Within its service area Guardian National is now competing with one bank 

which is nearly five times its size and with a branch of another nearly thirty 

times its size. Moreover, the largest bank in Northern Virginia has also been 

authorized to establish a branch in Springfield which could further intensify 

competition in this area. While this proposal would eliminate one independent 

bank there will be no elimination of banking facilities or alternates and its replacement with branches of The Bank of Prince William should enable it to 

compete more effectively with the larger institutions in the Springfield area. The 

resulting bank would remain the third largest bank in the Springfield area, being 

less than one-third the size of the now dominant bank and slightly smaller in 

size than its next largest competitor. The moderate amount of resources to be 

gained by The Bank of Prince William through the proposed merger would not 

enhance its competitive position in Prince William County to any significant 

extent.

The Guardian National Bank has experienced serious managerial and operational problems, as well as loan administration problems, during its relatively 

short period of existence. Correction of these deficiencies should be accomplished through the merger.

In view of the foregoing, the proposed merger, which will not have an unfavorable effect on competition but which will result in a strengthened management and provide a solution to the other problems with which Guardian National 

Bank is presently confronted, is concluded to be in the public interest.

Case No. 21

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Farmers Trust Company,

Franklin, Indiana (change title to 

Franklin Bank and Trust Company) 

tQ merge with

8,792 2 3

The Johnson County National Bank of

Franklin,

Franklin

4,851 1

Sum m ary report by A ttorney General, S eptem ber 3 0 , 1964

The proposed merger of the Farmers Trust Company, Franklin, Indiana, with 

The Johnson County National Bank, Franklin, Indiana, under the charter of 

Farmers Trust Company and with the title Franklin Bank and Trust Company, 

Franklin, Indiana, will eliminate one of the three banks now competing in Franklin. It will reduce the number of commercial banks in Johnson County to five 

and upset such competitive balance as presently exists among the banks now 

operating there. It, therefore, may tend to initiate a trend toward other mergers 

in that area. The competitive effect on commercial banking thus will be adverse.

Basis for Corporation approval, M ay 18, 1965

The primary service area involved in this proposal is considered to consist 

mostly of Johnson County, which is contiguous to Marion County to the north, 

wherein is located Indianapolis, the county seat and State capital. Franklin is 

the seat of Johnson County and is but 21 miles south of downtown Indianapolis, 

and its Whiteland branch is but 15 miles away.

Among Johnson County banks (six) the applicant now ranks third and National 

fifth. As a result of the merger, the applicant will gain first position, as measured

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52 FEDERAL DEPOSIT INSURANCE CORPORATION

In terms of IPC deposits, holding 31.4 percent of the county’s aggregate bank 

IPC deposits, but still will be of comparable size with the other bank in Franklin, 

which holds 25.4 percent. With respect to loans, the resulting bank still will rank 

third, holding less than 26 percent of aggregate loans, as compared to 30.4 percent held by the other bank in Franklin and 26.1 percent by a bank in Greenwood, which is north of Franklin toward Indianapolis. Our examiner indicates 

that the growth potential of this bank and the Union Bank and Trust Company, 

Franklin, which has recently opened a branch 13 miles northwest of Franklin 

toward Indianapolis, is greater than that of the resulting bank. The northern part 

of Johnson County is its most populous and fastest growing area. Not to be 

ignored, from a competitive standpoint, are the banks in Indianapolis, two of 

which exceed $600 million in total resources and one in excess of $300 million, 

and these banks exert considerable competitive influence in Johnson County, 

especially with respect to instalment loans. Many of Johnson County’s residents 

commute to Indianapolis for employment.

Although one Frenklin bank, among three, will be eliminated from the scene 

as a result of the merger and to this extent one source of competition will be 

eliminated, it is concluded that this effect on competition would be offset by 

the betterment in capacity and services that the resulting bank can provide the 

public. Such improved services and facilities will be manifested in an increased 

loan limit, expanded loan facilities and services, improved trust facilities, parking and drive-in facilities (not now possible at ether bank individually), and a 

farm management program. Also, walk-up windows, which are presently inadequate, will be improved and the merged bank will be in a position in the future 

to install and provide automation services to its customers.

In view of the alternate banking facilities available to the public and the much 

improved services and facilities that the resulting bank can offer (as compared 

to the two banks now operating separately), it is concluded that there is no 

tendency toward monopoly, that the merger would be in the public interest.

Case No. 22

The Howard Savings Institution,

Newark, New Jersey 

to acquire the assets and assume

liabilities of

Irvington State Bank,

Irvington

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

6 2 5 , 0 5 4

10,000

10

Sum m ary report by A ttorney General, M arch 19, 1965

The acquiring bank, The Howard Savings Institution, is a savings bank with 

eight offices throughout the Newark area. It is the largest bank in Newark, either 

savings or commercial, and is larger than all the other savings banks in Newark 

combined. The other bank, Irvington State Bank, is a commercial bank with two 

offices within the urban area of Newark, it is a relatively new bank, having been 

incorporated in 1957, and it has grown and prospered since. Because of their 

geographic proximity, the two banks are directly competitive with each other in 

the types of banking business they both offer. However, Irvington State Bank, 

being a commercial bank, engages in a wider range of activity, and its business 

would be restricted should it be acquired by the larger savings bank. The Newark 

banking market is already concentrated with The Howard Savings Institution 

being the principal factor in this concentration. Counting all banks, savings and 

commercial, the two largest have about 37 percent of the market, the three 

largest over half of the market and the four largest about two-thirds of the 

market. Accordingly, should the proposed acquisition be effected it would have 

a seriously adverse effect on competition.

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Basis for Corporation approval, June 3, 1965

The applicant, a $625.1 million mutual savings bank, will acquire by the proposed transaction the two offices of Irvington, a $10.0 million commercial bank. 

These banks are located in the adjoining towns of Newark and Irvington in 

Essex County, New Jersey, and applicant’s much larger service area entirely 

overlaps that of Irvington. The nature of the two institutions precludes competition between them in some areas of banking, but Irvington’s deposit and loan 

structures are heavily weighted with time deposits and mortgage loans. Some 

competition, therefore, is indicated between them; however, an analysis of customer and area overlapping disclosed that applicant derives less than 20 percent 

of its deposit volume and slightly more than 6 percent of its mortgage portfolio 

from Irvington’s service area and that common customers are even smaller in 

number and amount. The degree of competition between the participating banks 

which would be eliminated is not significantly adverse. The resulting bank, as 

a mutual savings bank, would not be competitive in the commercial banking 

field and to this extent overall competition in Irvington’s service area would be 

lessened.

The increase in concentration of IPC deposits and loans resulting from the 

proposal is nominal in both service areas. The resulting bank would hold 21.0 

percent of the aggregate IPC deposits in applicant’s service area and 26.3 percent in Irvington’s service area, based on total IPC deposits of all banks in both 

instances. The existing competitive situation would not be materially changed 

in this respect. Irvington’s deposit and loan structures are concentrated in the 

fields of banking in which the applicant, by its nature, places its greatest emphasis and is most experienced and equipped to service. In addition, the applicant 

will bring personal trust services to the proposed Irvington branches for the 

first time, and the utilization of a unique computer service which will be offered 

will be an additional convenience for the Irvington residents.

Consummation of the proposed transaction will resolve a declining earnings 

situation and capital problem now in evidence at Irvington, and would improve 

the asset condition and strengthen the management factor. There would be no 

significantly unfavorable effect on competition and, in view of the benefits to be 

derived, the proposed transaction is concluded to be in the public interest.

Case No. 23

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Farmers Bank, Owenton, Ky., Inc.,

Owenton, Kentucky (change title to 

First Farmers Bank and Trust Company) 

to merge with

1,539 1 2

The First National Bank in Owenton,

Owenton and

1,223 1

Gratz Deposit Bank,

Gratz

1,189 1

Sum m ary report by A ttorney General, M arch 24, 1965

Farmers Bank and First National, each of which has its only office in Owenton, 

Kentucky, the county seat, are located 7 miles northeast of the only office of 

Gratz Deposit Bank, Gratz, Kentucky. A controlling interest in each of the Owenton banks and a 25 percent interest in Gratz Deposit was recently acquired by 

Garvice D. Kincaid and associates who, according to the application, own “ about 

fourteen banks” in the State of Kentucky.

This application comes on the heels of the elimination of still another independent bank in Owen County through the merger of Peoples Bank and First 

State Bank, approval of which was given by the Corporation in February 1965. 

By virtue of that merger and the proposed one, the number of banks in Owen 

County will be reduced from six to three. First Farmers (the resulting bank) will

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54 FEDERAL DEPOSIT INSURANCE CORPORATION

have 38.7 percent of the IPC deposits and 34.5 percent of the loans, while 

Peoples Bank will have 51.7 percent of IPC deposits and 57.8 percent of the 

loans of the three banks.

Because of the small size of the merging banks and the fact that the large 

degree of common ownership undoubtedly precludes aggressive competition 

among them even in the absence of a merger, the adverse competitive effect of 

the proposed merger probably is not substantial. Nevertheless, we do view with 

some concern the rapid decline in the number of independent banking units in 

this area and the continuing diminution of prospects for eventual deconcentration.

Basis for Corporation approval, June 10, 1965

The proposal would merge the two smallest of three banks in Owenton, Kentucky, and a small bank in Gratz, 9 miles southwest. The two Owenton banks, 

which are one block apart, would be combined into one office of the resulting 

bank and a branch would be established at Gratz. The Owenton banks are commonly owned and controlled and the same ownership exercises effective control 

of the Gratz bank. The small size of the three merging banks and the degree of 

common ownership indicates there is no significant competition between them 

which would be eliminated by the proposal.

The applicant bank in Owenton holds 11.3 percent of the aggregate IPC 

deposits owned by the nine banks operating in the combined service area. 

Although applicant’s share of such deposits would be increased substantially, 

the resulting bank would hold slightly less than 30 percent of the aggregate IPC 

deposits compared to almost 40 percent held by its local competitor, the largest 

bank in the area. Gratz Bank’s closest competitor is a branch of the largest bank 

in the combined service area and competition should be enhanced in both the 

Gratz and Owenton areas.

The resulting bank would be in a position to accommodate much larger credit 

requests and furnish a greater variety of loans to present and potential customers than can the merging banks operating independently. Additionally, trust 

services will be available at the resulting bank locations as a result of the proposal and savings accounts, not presently offered by the Gratz Bank, will be 

available to the Gratz area residents.

The proposed merger, which will have no unfavorable effect on competition, 

will result in enlarged and improved banking services, resolve the problem of 

declining earnings in the two Owenton banks, and is concluded to be in the 

public interest.

Case No. 24

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Bank of Turtle Lake,

Turtle Lake, North Dakota 

(proposed new bank) 

to acquire the assets and assume

liabilities of 1 branch of

The Farmers Security Bank of Washburn,

Washburn

1,9773

Sum m ary report by A ttorney General, April 3 0 , 1965

Farmers Security Bank of Washburn, North Dakota (Farmers Security Bank), 

operates a main office in Washburn and a paying and receiving station at Turtle 

Lake, about 26 miles to the northeast. This station has only limited banking 

authority. In order to have an institution with full banking powers in Turtle Lake, 

the owners of Farmers Security Bank had the Bank of Turtle Lake chartered in 

1964, and propose to transfer roughly half of its assets and business to the new 

institution as of April 1, 1965. As an end result of the transaction as planned, the

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Farmers Security Bank and Bank of Turtle Lake would have identical owners. 

The proposed acquisition appears unlikely to have adverse effects on competition in the relevant area.

Basis fo r Corporation approval, June 2 5 , 1965

The transaction involves an operating bank in Washburn, North Dakota and a 

proposed new bank to be located in Turtle Lake, the site of the Washburn bank’s 

paying and receiving station. Washburn and Turtle Lake are located 24 miles 

apart and each serves a primarily agricultural area.

The effect of the proposals will be to supplant a limited power station with a 

full service bank. It is apparent that no competition exists between the participating banks and the common ownership and control of the resulting banks precludes potential competition between them which would be eliminated. There 

will be no increase in concentration of banking resources and competition may 

be enhanced in the Turtle Lake area by the introduction of full service banking.

The proposed transaction, which will have no unfavorable effect on competition and will bring the benefits of full service banking to the Turtle Lake area, 

is concluded to be in the public interest.

Case No. 25

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

State Bank and Trust Company,

Greenwood, South Carolina

78,514 22 24

to merge with

The Saluda County Bank, 4,338 2

Saluda

S um m ary report by A ttorney General, M ay 2 0, 1965

Applicant bank is the fourth largest bank operating in the State of South Carolina, having 21 offices and over $78,000,000 in total assets. Although little if 

any competition between the merging banks would be eliminated, the proposed 

merger would eliminate the only bank serving the Saluda, South Carolina area, 

and would add a seventh independent bank to applicant’s list of acquisitions 

throughout the State during the past 10 years. This is another in a series of 

eliminations of independent banks by statewide chains which continues a conspicuous trend toward concentration in South Carolina. Aside from such trend, 

the effect of the merger on competition would not be significantly adverse.

Basis fo r Corporation approval, June 1, 1965

This proposal would merge a relatively small bank in Saluda, South Carolina, 

with a much larger bank (the fourth largest in the State), headquartered in 

Greenwood, 30 miles northwest of Saluda. State Bank operates 22 offices in 15 

cities or towns situated generally west and southwest of Columbia (including 

four in Columbia), but none closer to Saluda Bank than 23 miles. The respective 

service areas of the merging banks do not overlap and there is no competition 

between them which will be eliminated.

Principal banking competition for State Bank emanates from offices of the 

State’s 3 largest banks which, among 20 banks with offices in the relevant 

service area(s), collectively hold more than four-fifths of the aggregate bank 

deposits, as compared to less than 10 percent held by State Bank and Saluda 

Bank combined. Among these banks, the largest holds more than four times the 

volume of deposits held by State Bank and the third largest holds twice the volume of State Bank. The latter’s deposit volume, as a result of the merger, would 

be increased by less than one-half of 1 percent. To a small degree, the enlarged lending limit that would result for State Bank would enable it to compete 

more effectively with its large competitors; otherwise, the merger would have no 

significant effect on banking competition in the areas presently served by State 

Bank.

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56 FEDERAL DEPOSIT INSURANCE CORPORATION

Saluda Bank now is the only bank serving Saluda and its immediate trade 

area and the competition it faces from other banks does not loom large, its 

nearest competitor being located 13 miles away. The substitution of branches of 

the larger bank in place of the two Saluda offices of Saluda Bank should prove 

beneficial to the public in that area because of State Bank’s greater resources 

and more aggressive management policies; moreover, competition as it presently 

exists would not be altered or lessened to any significant degree because there 

are no other banks in the immediate area. In Saluda, 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.

There is no tendency toward monopoly involved and it is concluded that the 

merger would be in the public interest.

Case No. 26

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Peoples Bank of Radford,

Radford, Virginia 

to acquire the assets and assume

liabilities of

3,289 2 3

Bank of Dublin, Inc.,

Dublin

3,033 1

Sum m ary report by A ttorney General, June 16, 1965

Peoples Bank of Radford, with assets of $3,284,069, proposes to acquire the 

assets of and assume liability to pay deposits made in Bank of Dublin, a bank 

with assets of $3,032,650 and located 8 miles southwest of Radford, Virginia. 

According to the application, competition between the two banks is insignificant.

Peoples Bank will shortly become a subsidiary of The First Virginia Corporation, a bank holding company, such acquisition having been approved by the 

Federal Reserve Board on April 12, 1965.

However, the important factor in this proposed acquisition is the impending 

failure of the Dublin Bank. The application points out that Dublin is insolvent 

due to fraudulent dealings by one of its customers who was indebted to Dublin 

Bank in the amount of $730,000. To meet the loss which will result from this 

indebtedness, Charter Bank has arranged to acquire the assets of and assume 

liability to pay deposits made in Dublin Bank by advancing $730,000 to Dublin 

Bank. This sum will be used to create a capital reserve against which all losses 

on the indebtedness of the defrauding borrower will be charged. This $730,000 

which Charter Bank has advanced was secured by Charter Bank through a loan 

of $500,000 from First Virginia Corporation and by First Virginia Corporation 

making a deposit of $230,000 in Charter Bank.

The outstanding stock of Dublin Bank has been placed in a voting trust and 

any equity remaining after depositors are paid will be distributed to the stockholders of Dublin Bank in the form of stock in Bank of Radford.

Under these special circumstances we voice no adverse comment on competitive grounds to the proposed acquisition.

Basis fo r Corporation approval, July 1, 1965

This transaction would combine the sixth and seventh largest of eight banks 

serving a mixed agricultural-industrial area in Montgomery and Pulaski counties 

in southwestern Virginia. Peoples presently operates its main office and one 

branch in Radford, and Bank of Dublin operates its only office and provides the 

only banking facility in Dublin (population— 1,427), which is situated about 8 

miles southwest of Radford. The service areas of the participating banks are 

predominantly local in nature and consequently any competition between them 

which would be eliminated through this transaction would be minimal.

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Bank of Dublin was recently faced with an emergency situation arising from 

fraudulent activities of one of its customers who had taken his own life. As a 

result, directors of the bank became convinced that its assets contained such a 

volume of spurious loans and related items as to render the bank insolvent, and 

the bank was faced with the threat of suspension of its operations. To avoid this 

probability, an arrangement was made for its acquisition by Peoples which was 

in process of becoming affiliated with First Virginia Corporation, a registered 

bank holding company, whereby the latter provided an escrow deposit in a sufficient amount to offset potential losses in the assets of Bank of Dublin, assure 

its solvency and permit it to continue normal operations until the proposed transaction could be arranged.

Our investigation of the proposal disclosed no objection from any of the competing bankers and the consensus was that it would be beneficial to the public 

and banking since it would save such services for the people of Dublin. The 

increase in Peoples’ resources as a result of this transaction would about double 

its size but it would still be the sixth largest of seven remaining banks and would 

hold but slightly over 10 percent of the IPC deposits and loans held by all banks 

represented in the area.

In view of the emergency situation described above, it did not appear likely that 

Bank of Dublin would be able to continue to be competitive or function effectively as an independent unit. Under these circumstances, the proposed transaction which would solve the serious problems at the Bank of Dublin and assure 

continuance of the only banking facility at Dublin, and which would have no significantly unfavorable effect on competition, was concluded to be in the public 

interest.

Case No. 27

Resources

(in

Banking offices

thousands

of dollars)

In

operation

To be

operated

Manufacturers Bank,

Los Angeles, California 

to merge with

47,859 1 2

Guardian Bank,

Hollywood

7,659 1

Sum m ary report by A ttorney General, June 3 0 , 1965

Guardian Bank, Hollywood, California, has assets of about $7.7 million, and 

Manufacturers Bank in nearby Los Angeles has assets of about $48 million. Both 

are unit banks and both are new entrants in the banking field in the Los Angeles 

area, Manufacturers having begun operations in 1962 and Guardian in 1963.

Analysis of the position each bank occupies relative to others in the area is 

complicated by the fact that most other banking offices are branches of large 

California-wide or regional banks and assignment of realistic financial figures to 

individual offices is difficult if not impossible. However, data developed by the 

Federal Deposit Insurance Corporation indicate that Manufacturers has about

11.4 percent of the deposits in the relevant area and 20.5 percent of the loans, 

resulting in a ranking of fourth in deposits and third in loans. The addition of the 

Guardian Bank business would increase Manufacturers Bank’s totals to 12.6 percent of deposits, still ranking fourth, and 23.4 percent of the loans, raising it to 

second position.

After initial losses, both banks appear to be operating profitably. Each therefore may be regarded as providing a significant stimulus to competition in the 

concentrated banking market of the Los Angeles area. We think it important to 

preserve the contributions of new entry. Nevertheless, in light of the facts in this 

case, it does not appear that the proposed merger is likely to have significant 

adverse competitive effects.

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58 FEDERAL DEPOSIT INSURANCE CORPORATION

Basis fo r Corporation approval, July 2, 1965

The proposal would merge two small unit banks, Manufacturers Bank and 

Guardian Bank, which are located 9 miles apart in Los Angeles, California. 

Each bank serves a separate area and faces direct competition from four of the 

State’s large branch bank systems. There is virtually no competition between 

the participating banks which would be eliminated by the proposal.

The applicant, Manufacturers Bank, would nominally increase its share of 

aggregate IPC deposits to 12.7 percent of the total owned by all banking offices 

in the combined service area. Thirteen offices of three large branch banks hold 

an aggregate of 70.2 percent of such deposits. There would be no unfavorable 

effects on competition in the service area of either merging bank and competition should be enhanced in Guardian’s service area.

Guardian is operating with an impaired common capital account and attempts 

to sell additional stock have been unsuccessful. The bank faces the possibility 

of closure. The proposed merger will serve to prevent the forced liquidation of 

Guardian and is determined to be in the public interest.

Case No. 28

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Broad Street Trust Company,

Philadelphia, Pennsylvania (change 

title to Continental Bank and Trust 

Company and change location of head 

office to Norristown) 

to merge with

244,627 23 37

Montgomery County Bank and Trust

Company,

M n r r i e t r t u / n

131,924 14

Sum m ary report by A ttorney General, June 8, 1965

Broad Street Trust Company, which operates 28 offices in Philadelphia and 

the surrounding three-county area, seeks to merge with Montgomery County 

Bank and Trust Company, under the charter of Broad Street and with the title 

of Continental Bank and Trust Company. Broad Street, with assets now exceeding $242,603,000, has made three acquisitions in the past 10 years.

Montgomery County Bank and Trust Company, Norristown, Pennsylvania, was 

chartered in 1884 and has made three acquisitions since 1955. With total assets 

of $131,000,000, it operates 15 offices, 13 of which are located in Montgomery 

County, and is about to open branches in six adjoining counties.

Seven banks headquartered in Philadelphia, including Broad Street, account 

for approximately 82 percent of total deposits and approximately 85 percent of 

total loans in the area. Twenty-two remaining banks, according to the application, hold a combined share of only 17.31 percent of total deposits and 14.13 

percent of total loans.

Broad Street is now the seventh largest bank in Philadelphia and the resulting 

bank would be sixth among 28 banks with approximately 6 percent of the commercial banking business in the area.

The probable effect on commercial banking in the Philadelphia area would be 

adverse.

Basis for Corporation approval, July 6, 1965

Broad Street Trust Company, the applicant, operates 19 of its 23 offices in 

Philadelphia, Pennsylvania, and is the seventh largest bank in the combined 

service area. The proposed merger with Montgomery County Bank and Trust 

Company, headquartered in Norristown, 16 miles northwest, would advance applicant’s position to sixth largest bank and provide it with 15 additional offices. The 

respective service areas do not overlap and virtually no competition between 

the merging banks would be eliminated by the proposal.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 59

The resulting bank would hold but 5.6 percent of the aggregate IPC deposits 

owned by the 32 commercial banks located in the combined service area. The 

next larger bank holds 9.6 percent and the largest bank holds almost one-fifth 

of such deposits. Competition in Philadelphia, applicant’s primary service area, 

would not be changed significantly by the proposed merger. A number of offices 

of five of the six largest banks furnish competition in Montgomery County Bank’s 

service area and direct competition with four of these large banks is provided 

at five of Montgomery County Bank’s locations. Competition will be enhanced 

materially in this service area as a result of applicant’s more aggressive policies 

and increased size.

There will be no unfavorable effect on competition and the proposed merger, 

which would strengthen management with greater depth and aggressiveness and 

provide improved and specialized lending and trust services to the areas served 

by both banks, is concluded to be in the public interest.

Case No. 29

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Citizens Bank of Michigan City, Indiana,

Michigan City, Indiana

30,133 6 7

to acquire the assets and assume

liabilities of

State Bank of Westville, 2,793 1

Westville

Sum m ary report by A ttorney General, June 22 , 1965

The Citizens Bank, which operates a head office and two branch offices in 

Michigan City, Indiana, as well as two additional branch offices in the center and 

the south of LaPorte County, Indiana, proposes to acquire by merger the State Bank 

of Westville, Indiana, also in LaPorte County 12 miles south of Michigan City. 

Though the State Bank’s service area is included in the larger service area of 

Citizens Bank and the two banks obviously competed with each other in the 

past, competition has practically been eliminated since the purchase by the 

President and Chairman of the Board of Citizens Bank of most of State Bank’s 

outstanding capital stock.

In the service area of Citizens Bank, the resulting bank would remain the 

second largest bank, increasing its share of deposits from 15.7 percent to 17.2 

percent. The increase in the share of loans and discounts would be from 17.4 

percent to 18.4 percent. By comparison, the largest bank in the service area, 

First Merchants National Bank, Michigan City, has a share of deposits amounting to 19.7 percent and loans and discounts of 22.7 percent.

In the smaller State Bank service area—within the Citizens Bank area— there 

is, at Wanatah, a branch office of the aforementioned First Merchants National 

Bank, Michigan City, and at Union Mills a branch of LaPorte Bank and Trust Co. 

It is therefore not believed that the vigor of competition in the State Bank service 

area will suffer as a result of the merger.

It does not appear that the merger, if approved, will have a substantial impact 

upon competition in commercial banking in the service areas of the two banks.

Basis for Corporation approval, July 2 3 , 1965

The purchase and assumption transaction involves two banks located 12 miles 

apart in LaPorte County, Indiana. Applicant, with its head office and three 

branches in Michigan City, operates two additional branches in the county and 

is the third largest bank in the relevant service area in terms of IPC deposits 

owned. The selling bank is a small unit bank in Westville which serves a limited 

area situated within the larger service area of the applicant. The closest offices 

of applicant to Westville are those in Michigan City.

Competition between the two banks in the past appears to have been minimal 

by virtue of the difference in their size and proximity of other larger banks. ConDigitized for FRASER 

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60 FEDERAL DEPOSIT INSURANCE CORPORATION

trol of Westville bank was acquired by applicant’s president in April, 1965 with 

the intention of effecting the proposal.

The increase in applicant’s resources would be nominal and the resulting 

bank, as second largest in the area, would hold 17.1 percent of the aggregate 

IPC deposits. The largest bank holds slightly more than one-fifth of such deposits 

and is applicant’s local and principal competitor. The third largest bank is 

roughly equal in deposit size to applicant and is located 12 miles from the main 

office of each participating bank. Westville bank’s closest competitor, 8 miles 

south, is a branch of the largest bank. A branch of a bank five times the deposit 

size of Westville competes from a location 9 miles southeast. The small increase in concentration will have no significant effect on competition in applicant’s service area and competition should be intensified in the smaller service 

area of the Westville bank.

The seven statutory factors are favorable to the proposal and there is no tendency toward monopoly involved. The proposed transaction, which will bring 

capable, aggressive management and enlarged and improved lending and trust 

services to Westville, is concluded to be in the public interest.

Case No. 30

Resources

(in

thousands

of dollars)

Banking offrces

In

operation

To be

operated

Southern Bank and Trust Company,

Greenville, South Carolina 

to merge with

Bank of Piedmont,

Piedmont

2 2 , 6 5 6

1 , 9 4 8

Sum m ary report by A ttorney General, June 4 ,1 9 6 5

The banking industry in the State of South Carolina is presently concentrated 

and a substantial increase in banking concentration has taken place in recent 

years because of numerous mergers. The proposed merger is the third merger 

involving the Southern Bank and Trust Company in recent months.

This merger, because of the presence of common ownership and common 

directors, will, in and of itself, have little direct effect upon competition. It will, 

however, eliminate an alternative source of credit and increase concentration in 

banking in an area where concentration is already substantial and where a 

trend toward greater concentration appears to be well established. At the present 

time, the four largest banks in South Carolina operate 41 percent of the total 

banking offices in the State and hold over 60 percent of the State’s total deposits. In the area served by Southern Bank and Trust Company five banks 

hold over 90 percent of the total deposits. Approval of this merger will allow the 

continuation of the merger trend and in all probability encourage banks in the 

area to expand still further via the merger route.

The over-all effect of the proposed merger on competition will not be substantially adverse.

Basis for Corporation approval, July 2 3 , 1965

Consummation of this merger would have very little effect on the competitive ability and position of Southern, as opposed to its larger competitors in 

Greenville. There are four banks in Greenville among which Southern is the 

smallest, and following the merger it will be less than one-half the size of the 

third largest. It will be substantially smaller than the two largest banks in 

Greenville. In Piedmont the merger would have the effect of replacing a small 

unit bank which is strictly local in its outlook and service to the public by a 

branch of a larger bank which is aggressive in its policies and banking practices.

For several years Piedmont Bank has had difficult management problems which 

the merger wilt solve. Moreover, its asset condition leaves much to be desired 

and the management of Southern is more capable of dealing with these probDigitized for FRASER 

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 61

lems. Its management can supply the personnel and policy direction which is 

needed. Furthermore, the larger bank is in a position to provide a broader range 

of banking services and conveniences to the public.

All banking factors are favorable to the proposal and with no tendency toward 

monopoly involved it is concluded that the merger would be in the public interest.

Case No. 3 1

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

The Bank of Asheville,

Asheville, North Carolina 

to merge with

1 9 , 5 7 0 5 6

Swannanoa Bank & Trust Company,

Swannanoa

2 , 2 7 0 1

S um m ary report by A tto rn ey General, June 7, 1965

The proposed merger would eliminate the competition which presently exists 

between the applicants. The small size of the merging bank and the Asheville 

Bank’s concentration on local service suggest that the competition between the 

participants is minimal. Moreover, the merger will not significantly alter the 

present distribution of banking power in Buncombe County. The resulting bank 

will be faced with competition from branches of four of North Carolina’s five 

largest banks. Nor will this merger thrust a large bank into a market previously 

occupied by a number of small institutions.

We therefore feel that the proposed merger would not have significant anticompetitive effects.

Basis fo r Corporation approval, A ugust 6, 1965

Asheville Bank serves a broad area in Buncombe County, North Carolina which 

Includes the smaller service area of Swannanoa Bank, located 11 miles east. 

The small size of Swannanoa Bank and the differences in the composition of their 

loan portfolios minimize the competition between them which would be eliminated by the proposal.

Asheville Bank competes in Asheville with four of the five largest branch bank 

systems in the State. The five Asheville branches of the largest bank represented 

in the area hold more than three times the deposit volume of Asheville Bank 

and almost one-half the aggregate deposits owned by all banking offices in the 

area. The second largest bank’s seven branches in the area hold slightly more 

than one-fourth of the aggregate deposits, and all offices of Asheville Bank hold

13.2 percent. The proposed merger would increase Asheville Bank’s deposits to 

14.8 percent of the aggregate owned by all offices represented in the service 

area. Three of the State’s largest banks compete with Swannanoa Bank through 

their four branches located within 5 to 8 miles of Swannanoa.

The proposal does not involve a tendency toward monopoly and there would 

be no unfavorable effect on competition in either merging bank’s service area. 

The Asheville Bank would bring a broader range of banking services to the 

immediate Swannanoa area and provide highly capable management for the 

Swannanoa Bank which is presently operating under temporary active management. The proposed merger is concluded to be in the public interest.

Case No. 3 2

Resources

fin

Banking offices

v,in

thousands

of dollars)

In

operation

To be

operated

Greenfield Citizens Bank,

Greenfield, Indiana (change title 

to Hancock County Bank)

3 , 8 5 0 1 4

to merge with

Hancock County Bank, 3 , 6 5 3 3

Willow Branch

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62 FEDERAL DEPOSIT INSURANCE CORPORATION

Sum m ary report by A ttorney General, July 9, 1965

The Greenfield Citizens Bank, Greenfield, Indiana, which operates its head 

office in Greenfield and has obtained permission to open a drive-in and walk-up 

facility 500 feet north of its office, proposes to acquire by merger the Hancock 

County Bank in Willow Branch, 10 miles northeast of Greenfield. Hancock County 

Bank has a branch office in Greenfield, approximately 1 mile north of the applicant bank and another branch office 6 miles northwest of Greenfield. The service 

areas of the two banks overlap more than 50 percent.

Early this year three directors of Greenfield Citizens Bank acquired controlling 

interest in Hancock County Bank and also became directors of that bank. Though 

competition between the banks which derive the predominant part of their business from the same area has been reduced as a result of the transaction, the 

merger, if approved, would permanently eliminate all competition between the 

two banks. The resulting bank would operate 50 percent of all banking offices 

in the Hancock-Greenfield area and control approximately 25 percent of all IPC 

deposits and loans there. The share of the two largest among five banks operating in the area would exceed 60 percent of all IPC deposits and loans.

In view of the lack of meaningful competition between the merging banks 

at present and their relatively small size it would appear that the effect of their 

merger on competition would not be significantly adverse.

Basis fo r Corporation approval, A ugust 23, 1965

The primary service area of Citizens and Hancock Bank consists mostly of 

Hancock County which is contiguous to Marion County to the west wherein is 

located Indianapolis, the State capital. Greenfield is the seat of Hancock County 

and is but 21 miles east of downtown Indianapolis. Willow Branch, location of 

the main office of Hancock, is 10 miles northeast of Greenfield. It is estimated 

that the service areas of the merging banks overlap about 50 percent; hence, 

there is some competition between them which would be eliminated.

Among 12 banks competing in the service area of Citizens and Hancock, 

Citizens ranks seventh in size and Hancock eighth, as measured in terms of 

IPC deposits. As a result of the merger, Citizens will gain third position, holding 13.1 percent of the aggregate IPC deposits held by 11 banks. It will be 

less than two-thirds the size of its local competitor in Greenfield and substantially smaller than an Indianapolis bank which operates two branches in the 

area. Not to be ignored from a competitive standpoint are the Indianapolis banks, 

two of which exceed $600 million in total resources and one in excess of $300 

million. These banks, operating a multiple number of banking offices, exert considerable competitive influence in Hancock County, as many of its residents 

commute to Indianapolis for employment.

Although one bank competing in the relevant service area will be eliminated 

along with one source of competition, 11 banks will still remain, providing 

ample alternative sources with which the public can choose its banking relations. The greater resources and enlarged capital base of the resultant bank, 

and the improved services it can offer, should prove beneficial to the public. 

Moreover, the increased lending limit and expanded loan facilities and other 

services, which the resultant bank will provide, will assist in the future growth of 

Hancock County. The asset structure and condition, capital position, earnings 

performance and active management of Hancock are characteristics favorable 

to the proposal in that the merger with Citizens would tend to correct these 

unfavorable situations. These factors outweigh the elimination of competition 

that would result.

There is no tendency toward monopoly involved and it is concluded that the 

proposed merger would be in the public interest.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 63

Case No. 33

Resources

fin

Banking offices

( in

thousands

of dollars)

In

operation

To be

operated

Brownstown Loan and Trust Co.,

Brownstown, Indiana (change title 

to The Peoples Bank 

to consolidate with

4,549 2 2

The First National Bank of Brownstown,

Brownstown

3,068 1

Sum m ary report by A ttorney General, A ugust 3, 1965

The Brownstown Loan and Trust Co., Brownstown, Indiana, was organized May 13, 1919. It has a branch at Crothersville, Indiana, about 13 miles 

southeast of Brownstown.

The First National Bank was organized April 4, 1908. The main office of the 

Brownstown Loan and Trust Co. and the office of the First National Bank are 

both on Main Street in Brownstown, a community of 3,000 population.

The consolidation will eliminate competition between two banks that have been 

successfully competing with each other since 1919. One of three banking 

alternatives in the community of Brownstown will be eliminated. The consolidation will give the resultant bank 67.1 percent of deposits and 54.4 percent of 

loans in Brownstown. If the service area is Jackson and adjacent counties, the 

consolidated bank with total deposits of $6,921,000 and loans of $2,623,000 will 

be third in size with 22.2 percent of total deposits of $31,166,000 and 19.6 percent of total loans of $13,363,000 in that area.

The effect of the proposed merger on competition will be adverse. However, 

since the merging banks are relatively small banks operating in a sparsely populated area, it does not appear that this effect will be substantial.

Basis fo r Corporation approval, Septem ber 7, 1965

Among eight banks located in the defined service area, applicant ranks fourth 

in size and National sixth, as measured in terms of IPC deposits, and among 

three banks in Brownstown applicant is largest by a narrow margin and National 

is smallest. The resulting bank will continue to rank fourth among seven banks 

in the relevant service area, holding 17.1 percent of aggregate IPC deposits. 

The two largest banks, both located in Seymour, 10 miles northeast of Brownstown, will hold more than one-half of the IPC deposits, and they provide strong 

competition to the three banks in Brownstown. The public will continue to have 

alternative banking choices available and the overall effect of the consolidation 

on competition will not be unfavorable. This conclusion was confirmed by officials of competing banks in the area.

The present quarters of both the applicant and National are congested and 

inadequate, and neither bank provides drive-in facilities. The consolidation will 

provide a capital structure sufficient to enable the resulting bank to construct 

modern quarters, conveniently located and with ample inside space, drive-in 

facilities, and adequate to serve the needs of the public. The increased lending 

limit of the resulting bank will aid in servicing the credit needs of the community, inasmuch as some persons now must go elsewhere to have their credit 

needs supplied. Moreover, it is contemplated that consumer and instalment lending will be considerably expanded, along with trust department facilities. It is 

concluded that the resulting bank will better serve the convenience and needs 

of the community through improved and enlarged facilities and a management 

representing a broader range of experience.

There is no tendency toward monopoly involved and in view of the foregoing, 

it is concluded that the consolidation will be in the public interest.

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64 FEDERAL DEPOSIT INSURANCE CORPORATION

Case No. 34

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Guaranty Bank & Trust Company,

Worcester, Massachusetts

86,624 11 14

to consolidate with

First National Bank of Webster,

\ A / a K r + n «*

15,430 3

Webster

Sum m ary report by A ttorney General, A ugust 16, 1965

Guaranty Bank & Trust Company of Worcester, Massachusetts, with assets 

of $83,429,000, proposes to consolidate with the First National Bank of Webster, 

Webster, Massachusetts, with assets of $15,655,000, under the charter and title 

of the former.

Competition between the banks is minimal, and not of significance. The proposed consolidation would remove one of two small, independent banks in the 

primary service area of Webster, and would require that the remaining bank 

compete with a branch office of the second ranked bank in Worcester County.

To this extent the proposed merger may have an adverse effect on competition.

Basis fo r Corporation approval, S eptem ber 24, 1965

The relevant service area in this consolidation extends through Worcester 

County in central Massachusetts, from the State line on the north to the southern 

border of the County and State, occupying approximately the eastern one-half of 

the County. The area is highly developed with diversified industry constituting 

the principal economic base. The main offices of the participating banks are 

20 miles apart and the nearest offices are 6 miles apart. A comprehensive 

survey of the deposit and loan accounts of the two banks reveals an insignificant 

amount of competition between them which would be eliminated.

Guaranty is the second largest commercial bank among 12 operating in 

the relevant service area and this rank will be unchanged as a result of the 

consolidation. It will hold approximately 23.5 percent of the IPC deposits held 

by the remaining 11 commercial banks in the area, an increase of 3.5 percent. 

The resultant bank would be less than one-half the size of its major commercial 

bank competitor in Worcester, as measured in terms of IPC deposits, and would 

be operating 14 offices compared to 26 for the largest bank. The relative rank 

and service areas of the numerous financial institutions competitive in the overall area would be unchanged by the consolidation. Of strong competitive significance is the presence in the area of 16 mutual savings banks which, combined, 

hold more than two-thirds of the aggregate IPC deposits held by all banks, or 

more than twice the volume of IPC deposits held by the commercial banks. Moreover, out-of-territory banks in larger cities, particularly Boston, are competitive 

in the area for the accounts of the larger industrial firms. Expanded services, 

including greater resources and lending capacity, trust facilities, and the advantages of Guaranty’s automation equipment would be immediately available to 

the residents of the Webster area where the principal noticeable effect of the 

consolidation would be the substitution of branches of Guaranty for the present 

offices of National.

It is concluded that the consolidation, which will not have an unfavorable 

effect on competition or the banking structure of the area, and which will provide increased banking services and greater availability of banking resources 

for support of the economy of the area, without tendency toward monopoly, is in 

the public interest.

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Case No. 35

Resources

(in

Banking offices

U R

thousands

of dollars)

In

operation

To be

operated

The Colorado State Bank of Denver,

Denver, Colorado

26,362 1 1

to acquire the assets and assume

liabilities of

Citizens Savings Bank, 10,629 1

Denver

Sum m ary report by A ttorney General, June 2 9, 1965

The proposed transaction would unite two of the small banks in Denver, Colorado, whose combined shares of loans and IPC deposits would not exceed 3 

percent. Moreover, the Denver banking market is dominated by two of the 26 

competing banks. Approval of this transaction would strengthen the resulting 

institution without significant anticompetitive results. The proposed acquisition of 

assets and assumption of liabilties would not appear to have a significant adverse 

effect upon competition.

Basis for Corporation approval, O ctober 15, 1965

The proposed transaction will unite two small banks in Denver, Colorado, which 

are located five blocks apart. The selling bank is authorized to conduct a general 

banking business but operates as a savings bank. The nature of its operation 

indicates there is little competition between the participating banks which would 

be eliminated by the proposal.

The service area is dominated by two large banks which hold an aggregate of 

more than one-half the IPC deposits and loans owned by the 26 banks in Denver. 

The resulting bank would hold less than 3 percent of such deposits and loans. 

The elimination of the selling bank will not substantially lessen competition with 

other area banks and numerous banking alternatives are available within a short 

distance. The selling bank’s customers will benefit from the added services available at the applicant bank which include checking accounts, safe deposit box 

rental and drive-up facilities.

The banking factors requiring consideration are determined to be favorable 

to the proposal and the effect of the transaction on competition would not be 

unfavorable. Consummation of the proposal will provide added banking services 

to the selling bank’s present customers and is concluded to be in the public 

interest.

Case No. 36

Resources (i n Banking offices

un

thousands

of dollars)

In

operation

To be

operated

Altoona Central Bank and Trust Company,

Altoona, Pennsylvania (change title to 

Mid-State Bank and Trust Company) 

to merge with

58,267 8 12

First Bellefonte Bank and Trust Company,

Bellefonte

20,790 4

Sum m ary report by A ttorney General, August 27, 1965

Altoona Central Bank and Trust Company, Altoona, Pennsylvania (Altoona 

Bank) is the largest of nine banks in its service area with IPC deposits of 

$47,728,000 (about 33.7 percent of such deposits held by banks located there). It 

operates eight offices in Altoona and the surrounding area. Since 1953 Altoona 

Bank has acquired four banks with total deposits of $15,966,578.

First Bellefonte Bank and Trust Company, Bellefonte, Pennsylvania (Bellefonte 

Bank) is the second largest of eight banks in its Bellefonte-State College service

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

area with IPC deposits of $16,573,000 (29 percent of such deposits held by 

banks located there) although it is largest in loans and discounts with 36 percent. 

It operates four offices in this area. Since 1954 Bellefonte Bank has acquired two 

banks with total deposits in excess of $6,320,723.

Existing competition between the participating banks is very limited, largely 

because their nearest offices are 35 miles apart.

If the proposed merger is consummated, the other banks in the Altoona-State 

College service areas, respectively, will henceforth be competing against a 

banking institution with greatly increased resources. In Altoona Bank’s service 

area the resulting bank would have 40 percent of total IPC deposits of banks 

located there, whereas at the present time Altoona Bank has 33.7 percent of 

such deposits. Likewise, in the Bellefonte-State College service area, the resulting bank would have 62 percent of total IPC deposits of banks located there, 

whereas at the present time Bellefonte Bank has 29 percent of such deposits. 

In both areas the resulting bank would be the largest by a substantial margin.

This merger would serve to further accelerate the trend toward concentration 

of bank resources in this central Pennsylvania area and enhance the competitive 

imbalance already existing between the participating banks and the smaller 

banks in their respective service areas. Thus, the proposed merger, if consummated, may have an adverse effect upon competition.

Basis for Corporation approval, O ctober 21, 1965

The applicant is the larger of 2 banks in Altoona and the largest of 12 

in the Altoona service area. Also, it is larger than each of the 8 banks in the 

Bellefonte-State College service area. First is the second largest bank in the 

Bellefonte-State College service area although it holds the largest volume of 

loans. The service areas are separate. Altoona and Bellefonte are 50 miles apart 

and the nearest offices of the applicant and First are 36 miles apart. Therefore, 

the merger would not reduce the number of banking choices available to the 

public, insofar as each area is concerned. There is no competition between the 

two banks which would be eliminated. Although the largest bank will become 

larger, the remaining banks are well established and have successfully competed with larger banks in the past.

There is strong evidence of the need for a larger bank in the service areas 

involved, especially in the Bellefonte-State College area where the growth trend 

in recent years has been substantial, both with respect to industry and housing, 

as well as the constantly increasing enrollment at Pennsylvania State University. 

The legal lending limit of First is inadequate to service the credit needs of several 

of its industrial and larger business customers and on many occasions it has 

had to resort to loan participations with correspondent banks in order to provide 

these credit needs. Moreover, in order to assist in financing the growing housing 

needs of the area, it has had to sell mortgage loans to other financial institutions. 

The resulting bank, with its greater resources and larger capital base, will alleviate this problem and it will be in a better position to assist in the expansion and 

growth of the area. Improved trust services, including applicant’s common trust 

fund, will become available to the customers of First and a farm representative 

and agricultural department will be able to develop more effective relations with 

farmers in Blair and Centre counties which contain very fertile farm land. The 

applicant already has installed automation equipment and as a result of the 

merger the resultant bank will be of sufficient size to develop and expand this 

service for the benefit of both banks and their customers.

All banking factors are considered to be favorable to the proposal. It is concluded that the merger which will not have unfavorable effects on competition 

and which will provide greater benefits to the public and assist in the economic 

growth of the area, without tendency toward monopoly, is in the public interest.

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Case No. 37

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Binford State Bank,

Binford, North Dakota (change title 

to Farmers and Merchants Bank in 

Cooperstown, and change location of 

head office to Cooperstown) 

to merge with

1,693 1 2

Security Trust Company,

Cooperstown

1,140 1

Sum m ary report by A ttorney General, June 3 0 , 1965

Each of the merging banks has assets of less than $2 million and operates one 

office. The banks are located 19 miles apart in a sparsely populated area that 

is predominantly agricultural, with some light industry around Cooperstown. Both 

banks are owned and operated by the same individuals. In fact, Security Trust Co. 

was organized in 1963 by the owners and officers of Binford State Bank.

The service areas of the two banks overlap to a degree. Their common ownership and management, however, suggest that there is little significant competition between them that would be eliminated by this merger.

The resulting bank will be comparable in size to the four other banks operating in its service area. It will be in most direct competition with the area’s largest 

bank (First State Bank in Cooperstown), an affiliate of First Bank Stock Corp. 

of Minneapolis. On the other hand, the owners and officers of the resulting bank 

also own and operate Citizens State Bank in Finley, one of the area’s four other 

banks. Because of this relationship the same individuals control 35-40 percent of 

the area’s banking business. It seems unlikely that there will be especially vigorous competition between the resulting bank and Citizens in Finley for this significant amount of business. In terms of concentration, however, this relationship 

does not appear serious, so long as these banks remain separate.

In our opinion, the overall effect of this merger on competition will not be 

adverse.

Basis for Corporation approval, O ctober 29, 1965

Among four banks in Griggs County, including Security, and seven in the 

relevant service area, the applicant and Security are the two smallest and following their merger will be of about equal rank with one other bank as third largest 

among six banks in the area. Cooperstown is the location of the largest bank 

in the area, holding'approximately one-fourth of the local IPC deposits, as 

compared to less than 16 percent which will be held by the bank to result from 

the merger. The increase in size for the applicant is not an important factor in 

this proposal.

Both the applicant and Security are commonly owned and managed. The control of the applicant was acquired in 1954, and that of Security when it was 

organized as a trust company in 1963. Because of recent changes in the North 

Dakota banking law, a trust company can no longer engage in a general banking 

business. Because of the common ownership and managemet, elimination of 

competition, also, is not an important factor in the proposal.

Binford, the present location of the applicant and 18 miles northwest of 

Cooperstown, is a small community of about 260 population, which is on a declining trend, and the community contains but about 10 business establishments. 

Cooperstown, the seat of Griggs County, has a present estimated population of 

almost 1,600 which is increasing, and it has about 85 business establishments. 

Cooperstown is the trading center for Griggs County and the surrounding area 

for a radius of from 15 to 25 miles in all directions. The owners of the applicant 

and Security have been residents of Cooperstown for about 40 years, and 

through other business interests have supplied credit needs in substantial 

amounts in the area. The growth of Security in its approximate 21/2 years of

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

existence, without the benefit of Federal deposit insurance, despite the competition by an insured local competitor (the largest bank in the area), is evidence 

that it is providing a community need and convenience. The change of location 

of the applicant (a full-service bank) from Binford to Cooperstown should increase competition in the area and improve services to the public because the 

services presently provided by Security are limited by legal restrictions. It is 

indicated that the residents of Binford already are going in increasing numbers 

to Cooperstown to purchase their goods and services; thus, the conversion from 

a full-service bank in Binford with poor future growth prospects to a paying and 

receiving station should result in no significant inconvenience to the public in 

that community. The State Banking Board in its written opinion concurs in this 

view. Full-service branch banks are prohibited in North Dakota.

There is no tendency toward monopoly involved, and it is concluded that the 

merger and change of main office location from Binford to Cooperstown would 

be in the public interest.

Case No. 38

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Citizens’ Bank of Albany,

Albany, Oregon (change title to 

Citizens Valley Bank)

11,823 2 5

to merge with

Bank of Lebanon, 11,712 3

Lebanon

Sum m ary report by A ttorney General, Septem ber 3, 1965

Citizens’ Bank of Albany (Citizens), Albany, Oregon, has requested permission 

to merge the Bank of Lebanon (Lebanon), Lebanon, Oregon. The Citizens’ Bank 

intends to operate the acquired facilities as branches. The merged bank will 

have approximately $23,000,000 in deposits and $13,500,000 in loans. Service 

areas of the two banks overlap and they are presently competitors for those 

services offered by both, namely deposits, commercial loans and agricultural 

loans. In the service area of the resulting bank are two large statewide banking 

chains (First National Bank of Oregon and U. S. National Bank of Oregon) which 

control 8 percent of the loans and deposits throughout the entire State and are 

substantial factors in the resulting bank’s area.

The competitive effects of the proposed merger probably would be adverse 

in that all presently existing competition between the two banks would be eliminated. In view of the limited size of the two banks in relation to their large 

competitors such anticompetitive effects would not appear to be substantial.

Basis for Corporation approval, N ovem ber 10, 1965

The merger involves two relatively small banks of similar size whose main, 

and closest, offices are located 13 miles apart in Linn County, Oregon. There are 

no intervening bank offices and the applicant and merging bank reportedly derive business from each other’s area “ to quite an extent” . The proposal would 

eliminate the direct competition between them; however, the merging bank’s 

financial condition seriously threatens its ability to continue in operation. The 

proposal, under this circumstance, would have the effect of preserving, rather 

than lessening, competition by assuring the continued operation of the merging 

bank offices as branches of the applicant.

The applicant would slightly more than double its size but the resulting bank, 

with $23.0 million in deposits, would continue to compete with the two largest 

branch bank systems in Oregon. Each of the large banks holds in excess of $1.0 

billion in deposits and competes directly with the participating banks’ main 

offices and at one of the merging bank’s branch locations. Competition would be 

enhanced with the large competitors, and the applicant’s increased size could

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enable It to offer improved and additional banking services not presently provided by the individual participating banks.

The proposal would not have significant adverse effects on competition and 

would provide a solution to the merging bank’s management and asset problems. Continued operation of the merging bank’s offices would be assured and 

it is concluded that the proposed merger is in the public interest.

Case No. 39

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Union Bank & Trust Co., Erie,

Erie, Pennsylvania 

to merge with

35,677 6 9

The Bank of Erie,

Erie

14,439 3

S um m ary reoort by A ttorney General, A ugust 10, 1965

Union Bank & Trust Co., Erie, Erie, Pennsylvania, with total assets of $33,793,000, 

and five branch offices, proposes to merge the Bank of Erie, which has total 

assets of $14,000,000 and two branch offices. Applicant bank and the merging 

bank are the two smallest of five banks in the city of Erie. Applicant bank has 

made no acquisitions since chartered in 1923 except for the purchase of Home 

National Bank of Union City, Pennsylvania in 1959, which has since operated as 

a branch office.

Although the resulting bank will continue to rank last in the Erie area, the 

proposed acquisition would eliminate all competition between two of five competing banks in Erie and reduce the banking alternatives from five to four, thereby 

adversely affecting competition in the Erie, Pennsylvania area.

Basis fo r Corporation approval, N ovem ber 10, 1965

The relevant service area in this proposal is the city of Erie and is considered 

to extend approximately 3 miles beyond the city limits. Within this area there 

are 22 offices of five banks, of which Union operates 5 and Bank of Erie 3. 

The participants are the two smallest of the five Erie banks, together holding 15.4 

percent of the aggregate resources and Bank of Erie holding but 4.5 percent. 

The two largest Erie banks, combined, hold more than two-thirds, each being of 

almost equal size. There is competition between the merging banks which will be 

eliminated, but the improved competitive standing of Union will more than 

compensate for the loss of the smallest competitive source. The broader and 

improved services which Union can introduce into the offices of Bank of Erie 

and the larger lending base of the resulting bank will tend to increase competition 

with the three larger banks. There will be no reduction in the number of 

banking offices.

Bank of Erie presently is the only bank in Erie not operating a trust department. In addition to trust facilities, Union will provide the customers of that bank 

with the advantages of electronic data processing equipment, and the larger 

lending base will be beneficial to the resulting bank in attracting and holding 

new customers. Moreover, Bank of Erie lacks management depth and is faced 

with a management problem which the merger will solve.

In view of the competition provided by the three larger banks, there is no 

tendency toward monopoly, and it is concluded that the merger is in the public interest.

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Case No. 40

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

The Northwestern Bank,

North Wilkesboro, North Carolina 

to merge with

239,953 66 67

Bryson City Bank,

Bryson City

3,095 1

Sum m ary report by A ttorney General, July 21, 1965

Northwestern Bank, North Wilkesboro, North Carolina, proposes to acquire 

by merger the Bryson City Bank, Bryson City, North Carolina. Northwestern Bank 

is the fifth largest bank in North Carolina, with resources in excess of $225 

million. It operates 63 offices in 58 cities concentrated in the Piedmont and 

western regions of North Carolina. Since 1960 it has acquired nine independent 

banks with 16 offices and combined resources of over $52.7 million.

The Bryson City Bank operates its only office in Swain County and is the only 

bank in that county. It is 25 miles from the nearest office of Northwestern Bank. 

As of December 31, 1964, the Bryson City Bank had total resources of over $2.7 

million. Competition between the merging banks is virtually non-existent.

The banking industry in North Carolina is highly concentrated with the six 

largest banks accounting for over 66 percent and 68 percent of the State’s 

total deposits and resources, respectively. Northwestern Bank presently accounts 

for 4.9 percent of the State’s total deposits and 5 percent of total resources, 

while corresponding figures for the State’s largest bank, Wachovia Bank and 

Trust Co., are 22.1 percent and 22.9 percent, respectively. Northwestern Bank 

claims that the proposed merger is necessary to enable it to compete with the 

State’s larger institutions.

The instant merger would not have anticompetitive effects.

Basis fo r Corporation approval, Novem ber 17, 1965

Banking resources in North Carolina are concentrated largely in six major 

branch systems operating on a statewide or regional basis and among which 

Northwestern ranks fifth in volume of deposits and number of banking offices. 

Among 152 banks in the State, as of December 31, 1964, these six banks held 

more than two-thirds of the total bank deposits and operated more than one-half 

of the State’s 831 banking offices. Northwestern held less than 5 percent of the 

total banking deposits and it now operates 66 offices. By contrast, the State’s 

largest bank with 92 offices holds 22 percent of the State’s total bank deposits 

and the fourth largest bank holds 9 percent. Northwestern, ranking fifth, is only 

a little more than one-half the size of the State’s fourth largest bank.

Northwestern faces direct competition from the State’s four largest branch 

bank systems at several locations although its operations are confined to the 

north-central and the western sections of the State. It does not presently compete with the unit Bryson City Bank; therefore, elimination of competition is not 

a factor in this proposal. Bryson City Bank holds less than 0.06 percent of the 

State’s total deposits and its merger into Northwestern will have no significant 

effects on competition in the areas where Northwestern presently has offices. 

The nearest competitor for Bryson City Bank is the Cherokee branch of First 

Union National Bank of North Carolina, Charlotte, 10 miles northeast (the State’s 

third largest bank). Although competition in the service area of Bryson City 

Bank is limited because of the mountainous terrain, to the extent that it may 

exist, the absorption of the relatively small unit Bryson City Bank by Northwestern would have no significant adverse competitive effects. The latter bank 

is in a position to offer a much broader range of services to the public, particularly trust facilities, an agricultural advisory department, data processing, and 

other specialized loan services.

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

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Resources

(in

thousands

of dollars)

Banking offices

Case No. 41 In

operation

To be

operated

Kings County Trust Company,

Brooklyn, New York (change title to 

Kings County Lafayette Trust Company)

100,569 3 10

to merge with

Lafayette National Bank of Brooklyn

in New York,

114,988 7

Brooklyn

Sum m ary report by A ttorney General, O ctober 13, 1965

Kings County Trust Company (hereinafter called Kings County) was organized 

on August 6, 1889. It has received authority to establish a branch office at 1532 

Flatbush Avenue, Brooklyn, and expects to do so in about three months. The 

average net operating income of this bank for the five years 1959 to 1963 has 

been $1,263,000 annually. For 1964 it was $1,084,000.

Lafayette National Bank of Brooklyn in New York (hereinafter called Lafayette) was organized on February 26, 1926. Lafayette has a head office and six 

branches, all in Brooklyn. The average net operating income of this bank for 

the five years 1959 to 1963 has been $1,610,000 annually. For 1964 it was 

$1,977,000.

The application indicates that both banks compete in the same service areas 

and maintain commercial, personal loans and trust departments in the service 

area involved. There are four competing Brooklyn banks with the following IPC 

deposits, loans and discounts as of June 30, 1965:

Total

IPC net loans

Name of bank deposits and discounts

Kings County $ 84,633,000 $ 46,436,000

Lafayette 105,707,000 71,093,000

Central State Bank 33,812,000 21,231,000

Franklin National Bank of L. I. 1,257,370,000 874,851,000

In addition, six large New York City banks have branches in the primary service 

area of the proposed merging banks in Brooklyn, to wit: Bankers Trust Co., 

Chase Manhattan Bank, Chemical Bank New York Trust Co., First National City 

Bank, Manufacturers Hanover Trust Co. and Royal National Bank.

Considering the continuing trend toward concentration of banking resources in 

the New York City metropolitan area, this merger will serve to accelerate that 

trend and eliminate one of the four local banks in the Brooklyn service area. 

The elimination of each bank creates a competitive disadvantage for local businessmen as well as for the remaining banks. Therefore, the proposed merger, 

if consummated, would have a substantial adverse effect on competition.

Basis for Corporation approval, Novem ber 24, 1965

The proposal would merge two commercial banks of similar size with main 

offices 31/2 blocks apart in Brooklyn, New York. Applicant had been a singleoffice bank engaged predominantly in wholesale banking until 1965. Lafayette 

operates seven offices and its banking business is primarily retail in nature. The 

participating banks operate for deposits predominantly in different markets and 

there is no significant competition between them to be eliminated by the proposed merger.

The resulting bank would hold a nominal proportion of the aggregate deposits 

and loans owned by the 17 commercial banks operating 126 offices in Brooklyn. 

Lafayette is in direct competition with five banks, each holding in excess of $1.0 

billion in deposits, which have branches in the same block as Lafayette’s main 

office. Applicant’s main office competes directly with three banks, each holding 

in excess of $5.0 billion in deposits, which have branches within two blocks.

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There would be no material change in the competitive situation in Brooklyn 

or in the immediate areas of the participating bank’s main offices.

Such limited unfavorable effects on competition as might result from the 

merger would be outweighed by the resolution of the capital, asset and management problems of Lafayette. The merger, therefore, is concluded to be in the 

public interest.

Case No. 42

Resources

(in

Banking offices

un

thousands

of dollars)

In

operation

To be

operated

American Bank and Trust Co. of Pa.,

Reading, Pennsylvania 

to merge with

243,770 14 15

The First National Bank of Coaldale,

Coaldale

3,383 1

Sum m ary report by A ttorney General, S eptem ber 1, 1965

This merger by itself does not appear likely to have significant anticompetitive 

effects. It will result in the conversion of the small independent other bank, 

currently the only bank located in Coaldale, into a branch office of applicant 

bank, which is, by a substantial margin, the largest bank centered in Berks 

County and also in the six surrounding counties. Because the resources of the 

other bank are relatively small, this merger will not add significantly to the market 

share of applicant bank, either in its present service area, or Berks County plus 

Pottsville and Reamstown, or in the larger seven-county area which the resulting 

bank claims it will serve.

However, the merger will be another step in the growth-by-merger process by 

which the applicant bank has achieved its present position as the largest bank 

in the area. Of applicant’s $220 million in deposits, $52 million came by the 

merger route, $28 million in the last six years. But for these resources acquired 

by some nine mergers, the applicant would be comparable in size and competitive strength to other area banks. The proposed merger, then, while it would add 

only another $3 million to the applicant’s deposits, will serve to enhance further 

its current competitive advantages.

Basis for Corporation approval, Decem ber 6, 1965

The main offices of the merging banks are located 44 miles apart in eastern 

Pennsylvania. Applicant, whose main office is in Reading, 60 miles northwest of 

Philadelphia, operates 12 offices in Berks County, one branch in Lancaster 

County and one branch in Schuylkill County. National is a unit bank located in 

Coaldale, Schuylkill County, and applicant’s nearest office is 19 miles southwest in Pottsville. Offices of competing banks intervene the closest offices of the 

participating banks, and the deposit and loan accounts derived by either bank 

from the other’s service area are negligible. There is no significant competition 

between the merging banks which would be eliminated by the proposal.

Applicant is a progressive, well-managed bank with a history of service to its 

community, particularly in providing financial and other support for industrial 

diversification and expansion.

Coaldale, located near the northeast border of Schuylkill County, is in the 

center of an anthracite mining area. The decline of this industry has been accompanied by a population decline and high unemployment and the area continues 

to be economically distressed. Applicant’s Pottsville office is managed by a staff 

and advisory committee which has furnished leadership in the continuing industrialization of a radius of about 5 miles surrounding Pottsville. The resulting 

bank can enlarge the capabilities of this group, particularly in Schuylkill County, 

and accomplish a stated purpose of the merger: to increase the job-creating 

potential in the northeast section of Schuykill County. The resulting bank could 

provide complete banking and fiduciary services beneficial to the people, industry, and commercial establishments in this area which the local banks now

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provide to a lesser extent. The services include electronic data processing, a 

larger lending limit, full-scale consumer credit and personal loan financing and 

more extensive and competitive trust services.

The service area of the resulting bank would include Berks, Schuylkill, and 

Lancaster counties as well as portions of four other contiguous counties in 

which the applicant is authorized to establish branches under State law and a 

small portion of Carbon County near Coaldale. Applicant is and will be the 

largest bank with offices in this area but there would be no appreciable increase 

in its resources through the proposed merger.

It is concluded, since there would be no significant unfavorable effects on competition, the extension of applicant’s broader services and aggressive management, with its record of improving the economy of the area it serves, to an 

economically distressed area would benefit that community and, therefore, the 

proposed merger is in the public interest.

Resources

(in

thousands

of dollars)

Bankir g offices

Case No. 43 In

operation

To be

operated

The Boone County State Bank,

Lebanon, Indiana

12,764 2 3

to acquire the assets and assume

liabilities of

State Bank of Advance, 1,732 1

Advance

Sum m ary report by A ttorney General, O ctober 27, 1965

The Boone County State Bank of Lebanon, Indiana, with assets of $12,765,000, 

proposes to acquire the assets and assume the liabilities of the State Bank of 

Advance, Advance, Indiana.

The acquisition by Boone, the largest bank in the area, of the assets of Advance would increase Boone’s dominance in the service area, and would encourage further concentration of banking facilities. However, in view of the size 

of the merging bank, the lack of substantial competition to be eliminated and 

the availability of alternate sources of banking services in the general area, it 

does not appear that the proposed acquisition would have significant anticompetitive effects.

Basis fo r Corporation approval, Decem ber 16, 1965

The two banks involved in the purchase and assumption transaction are located 11 miles apart in Boone County, Indiana. No banking offices intervene the 

two participating banks and their service areas overlap to a limited extent. There 

is some competition betweeen them which would be eliminated but the amount 

is not significant.

The increase in applicant’s resources would not materially affect competition 

in Lebanon, the location of applicant’s two offices. The selling bank has less 

than $2 million in resources and is the only bank located in Advance. There is 

no competition in Advance to be affected by the introduction of the applicant. 

The nearest competitors to Advance Bank are 5 to 8 miles distant and are 

small banks serving primarily their own communities. There would be no significant adverse effect on competition which may exist with these banks.

Present and potential customers in Advance Bank’s service area would benefit 

from the resulting bank’s larger lending limit, the availability of applicant’s farm 

representative and expanded consumer credit facilities.

The proposed transaction which would have no significant unfavorable effects 

on competition, but which would provide enlarged and expanded services in 

Advance Bank’s area and resolve the lack of depth in active management at 

Advance Bank, is concluded to be in the public interest.

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Case No. 44

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Pontiac State Bank,

Pontiac, Michigan 

to merge with

Clarkston State Bank,

Clarkston

62,818

8,803

10

Sum m ary report by A ttorney General, Novem ber 15, 1965

The proposed merger between a small, unprogressive, and futureless bank on 

the one hand and a thriving, up-to-date and imaginative bank on the other, 

neither of which is significantly in competition with the other, would only improve 

banking services in a rapidly growing community where there is a need for such 

an improvement.

The merger would not increase Pontiac State’s banking power appreciably. 

On the other hand, it would permit Pontiac State to compete more effectively 

with its much larger competitor in the area, Community National Bank.

No anticompetitive effects are seen in the proposed merger.

Basis for Corporation approval, D ecem ber 16, 1965

The Pontiac Bank serves an area a portion of which is contiguous to, but 

does not include a significant portion of, the Clarkston Bank’s service area, located some 10 miles northwest of the applicant’s main office. Business it derives from the Clarkston area is mostly unsolicited, and results from the inability 

of the Clarkston Bank to take care of the area’s credit requirements with its 

present size and loan policies.

Competition felt by the Clarkston Bank in the past has been small because the 

larger banks have not been interested in the type of account it was handling, but 

the early establishment of an office of a large Pontiac bank nearby would put it, 

as a small, unit bank, in a very disadvantageous competitive situation. On the 

other hand, merger into the Pontiac Bank will provide its community with offices 

of both Pontiac banks to choose between, and thus will improve the area’s 

competitive situation. Furthermore, the proposal will enable the applicant to 

maintain its competitive position relative to the larger Pontac bank and the banks 

headquartered in Detroit and Flint which have branched into the Greater Pontiac 

Area. These outside banks presently handle about 97 percent of the banking 

business of the Detroit-Pontiac-Flint section of the State of Michigan, and the 

National Bank in Pontiac handles about 67 percent of the volume left for the 

four existent locally headquartered banks. While the proposed merger will increase the applicant’s share of the latter volume only some 3 percent to 4 percent, it will enable it to maintain its competitive position in the Clarkston area 

as well as in the rest of Pontiac’s service area.

The Pontiac Bank is in a position to bring a much broader range of banking 

services to the Clarkston area, and vastly better credit facilities, under a management considered highly competent, whereas the Clarkston Bank has been 

unable, due to its small size and lack of perceptible future prospects, to find a 

suitable successor or assistant for its present executive officer. The proposed 

merger is concluded to be in the public interest.

Resources

(in

thousands

of dollars)

Banking offices

Case No. 45 In

operation

To be

operated

Empire Trust Company,

New York, New York

316,497 2 2

to merge with

Empire Safe Deposit Company, 286

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Sum m ary report by A ttorney General, N ovem ber 26, 1965

Empire Trust Company proposes to merge into it Empire Safe Deposit Company, its subsidiary, which is engaged in the business of renting vaults and safe 

deposit boxes. The stated purpose of the merger is to simplify administration and 

to effect possible local tax savings. The proposed transaction would have no 

effect on competition.

Basis for Corporation approval, Decem ber 20, 1965

Empire Trust Company owns all but Directors’ qualifying shares of the Empire 

Safe Deposit Company whose operation is limited to a safe deposit business 

conducted in leased portions of the bank’s two offices. All officers of the safe 

deposit company are also officers of Empire Trust Company. The objective of 

the proposed transaction is to simplify administration and to possibly accomplish some savings in local taxes by eliminating the affiliation and having the 

bank furnish safe deposit service on a direct basis. Consummation of the 

merger should have no effect on the condition or prospects of the applicant 

nor upon banking competition. Favorable findings have been made on the seven 

factors required to be considered by the Corporation and it is concluded that 

the merger is in the public interest.

Case No. 46

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Keystone Bank,

Freeport, Pennsylvania (change location 

of head office to Lower Burrell)

14,795 5 6

to merge with

The Union National Bank of Rockwood, 3,056 1

Rockwood

Sum m ary report by A ttorney General, A ugust 16, 1965

Keystone Bank operates four offices in southwestern Pennsylvania on the 

fringes or within the industrial complex of Pittsburgh. It has pending applications 

for two branch offices to be located within this area. As of June 1, 1965, Keystone reported total assets of $14,395,000, net loans and discounts of $9,214,000 

and total deposits of $12,826,000.

Union National Bank of Rockwood operates a single office in Rockwood, 

Pennsylvania, a small agricultural and recreational community approximately 65 

miles southeast of the nearest office of Keystone Bank. As of June 1, 1965, Union 

National Bank reported total assets of $2,896,000, net loans and discounts of 

$1,610,000 and total deposits of $2,645,000.

Because of the great distance separating the offices of the two banks and the 

apparently local nature of their respective operations, competition between them 

appears to be insignificant. Neither bank is a substantial factor in its respective 

service area, and the impact of the merger from the standpoint of competition 

or concentration in either service area is slight. We conclude that the effects of 

the merger upon competition will not be adverse.

Basis for Corporation approval, Decem ber 20, 1965

The areas served by the Keystone Bank and the Union Bank, whose closest 

offices are more than 60 miles apart, are not contiguous and the banks have 

never competed with each other. Consequently, there would be no elimination of 

competition between the merging banks.

Union Bank has failed to grow or prosper because of local economic conditions and, until recently, an unprogressive management. Keystone Bank’s management now holds a substantial stock interest, effective control of policy and a 

strong position on the board of Union Bank. Keystone Bank is in a position to

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76 FEDERAL DEPOSIT INSURANCE CORPORATION

bring a much broader range of banking services to the Rockwood area, vastly 

better credit facilities and a highly competitive management. Union Bank’s senior 

officers are approaching retirement age and the bank faces a management succession problem. The resulting bank, with its superior credit facilities and aggressive management, can prove to be a major factor in stimulating the local Rockwood economy and developing the region as a resort area, a prospect which 

would be very beneficial to the local community.

Keystone Bank presently handles less than one-half of 1 percent of the banking 

business in its present service area, and the proposal would have no adverse 

effect on competition therein. Union Bank presently holds about 8 percent of the 

deposits and loans in its immediate service area. The entry of Keystone Bank 

into the Rockwood area would stimulate competition with the larger banks represented there without adverse effects on competition with other banks serving 

the area.

The proposed merger, which would have no unfavorable effects on competition, would bring broader banking services and improved credit facilities to the 

Rockwood area which can be a factor in stimulating the local economy and 

development of the region, is concluded to be in the public interest.

Case No. 47

Resources

(in

thousands

of dollars)

Banking offices

In

operation

To be

operated

Security State Bank of Colby, 4,285

Colby, Wisconsin 

to consolidate with

Colby State Bank, 3,703

Colby

Sum m ary report by A ttorney General, O ctober 27, 1965

This is a proposal to consolidate Security State Bank and Colby State Bank, 

the two commercial banks of Colby, Wisconsin, a city of 1,200 in the west-central 

part of the State. The head offices of the consolidating banks are half a block 

apart; each bank also operates a branch office near the town. The head office 

of Colby State would be discontinued after the banks are combined. Both banks 

have been profitable independent institutions and are about equal in size to 

their nearest competitors.

The proposed consolidation would extinguish the competition which now prevails between Security State and Colby State and would eliminate the latter as an 

independent competitor in Colby and the surrounding area. It would also upset 

the relative competitive balance which prevails among the banks nearest Colby, 

and might thereby stimulate further merger activity in the area.

For these reasons, it is our opinion that the proposed consolidation of these 

two small, country banks would have an adverse effect on competition in commercial banking in Colby but would not appear to adversely affect competition 

beyond the confines of rural Colby and vicinity.

Basis for Corporation approval, D ecem ber 29, 1965

The proposal would consolidate two banks located one-half block apart in 

Colby, Wisconsin, each with less than $5.0 million in resources. State law prohibits branch banks and one office in Colby would be discontinued. The applicanUand the other bank each has a station, 3 miles north and 4 miles south 

of Colby, respectively, which would be operated as stations of the resulting bank.

The IPC deposits of the applicant would be almost doubled and the resulting 

bank would hold 23.3 percent of the aggregate of such deposits owned by the 

nine banks serving the general area. The seven other banks are located outside 

of Colby and its vicinity and primarily serve their immediate areas. The increased 

size of the applicant would have no significant adverse effect on competition 

with these banks. One large bank and four savings and loan associations located

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outside the general area offer strong competition to the area banks. The proposal 

would stimulate competition with these outside institutions to some degree.

The competition existing in Colby between the two small consolidating banks 

would be eliminated but present banking facilities and services would be improved and expanded and the resulting bank could offer additional services beneficial to the community. The larger lending limit would enable essentially all of 

the area's credit requirements to be met by the resulting bank, the present 

inadequate physical facilities would be enlarged, a number of additional services 

would be offered, and the resulting bank would be in a position to consider 

establishment of a trust department and data processing techniques. The proposal would eliminate one banking source in Colby but would cause no inconvenience because of the proximity of the existing bank offices.

The overall effect of the transaction on competition would not be unfavorable 

and the proposed consolidation, which would resolve applicant’s lack of depth 

in active management and provide improved facilities and additional services 

beneficial to the community, is concluded to be in the public interest.

1 Assets of branches being absorbed.

2 Two branches being absorbed. This bank will continue to operate its other offices.

3 Assets to be transferred.

4 Branch only is being absorbed. The Farmers Security Bank of Washburn will continue to operate its main office.

6 Operates two offices in quarters leased from Empire Trust Company as part of offices of the latter. Will be continued in 

operation.

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Federal Reserve Bank of St. Louis
LEGISLATION 

AND REGULATIONS

PART TWO

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81

FEDERAL BANKING LEGISLATION— 1965

Public Law 8 9 -3

8 9 th Congress, H. R. 3818

M arch 3, 1965

AN ACT

To eliminate the requirement that Federal Reserve banks maintain certain

reserves in gold certificates against deposit liabilities.

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the first sentence of the third paragraph 

of section 16 of the Federal Reserve Act, as amended (12 U.S.C. 413), is further 

amended by striking out “ reserves in gold certificates of not less than 25 per 

centum against its deposits and” .

Sec. 2. The eighteenth paragraph of section 16 of the Federal Reserve Act, 

as amended (12 U.S.C. 467), is further amended by substituting a period for the 

comma after the word “ notes” and striking out the remainder of the paragraph.

Approved March 3, 1965.

Public Law 8 9 -5 9

8 9th Congress, S. 1796

June 3 0, 1965

AN ACT

To amend the Small Business Act to provide additional assistance for disaster

victims.

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That (a) section 7(b) of the Small Business 

Act is amended by striking out “ twenty years.” , in the second sentence, and inserting in lieu thereof the following: “ thirty years: Provided, That the Administrator 

may consent to a suspension in the payment of principal and interest charges on, 

and to an extension in the maturity of, the Federal share of any loan under this 

subsection for a period of not to exceed five years, if (A) the borrower under such 

loan is a homeowner or a small-business concern, (B) the loan was made to 

enable (i) such homeowner to repair or replace his home, or (ii) such concern to 

repair or replace plant or equipment which was damaged or destroyed as the 

result of a disaster meeting the requirements of clause (A) or (B) of paragraph

(2) of this subsection, and (C) the Administrator determines such action is necessary to avoid severe financial hardship: Provided further, That the provisions of 

paragraph (1) of subsection (c) of this section shall not be applicable to any such 

loan having a maturity in excess of twenty years.”

(b) Section 7(c) of such Act is amended by inserting “ (1)” after “ (c)” , and by 

adding at the end thereof a new paragraph as follows:

“ (2) During any period in which principal and interest charges are suspended 

on the Federal share of any loan, as provided in subsection (b), the Administrator shall, upon the request of any person, firm, or corporation having a participation in such loan, purchase such participation, or assume the obligation of 

the borrower, for the balance of such period, to make principal and interest 

payments on the non-Federal share of such loan: Provided, That no such payDigitized for FRASER 

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ments shall be made by the Administrator in behalf of any borrower unless (i) 

the Administrator determines that such action is necessary in order to avoid a 

default, and (ii) the borrower agrees to make payments to the Administration in 

an aggregate amount equal to the amount paid in its behalf by the Administrator, 

in such manner and at such times (during or after the term of the loan) as the 

Administrator shall determine having due regard to the purposes sought to be 

achieved by this paragraph.”

(c) Section 4(c) of such Act is amended by—

(1) Inserting “ 7(c)(2),” after “ 7(b),” in the first sentence;

(2) inserting “ and 7(c)(2)” after “ 7(b)” where “ 7(b)” first appears in the fourth 

sentence; and

(3) deleting “ section 7(b)” from clause (2) in the fourth sentence and inserting 

“ sections 7(b) and 7(c)(2)” .

Sec. 2. Section 4(c) of the Small Business Act is amended—

(1) by striking out “ $1,666,000,000” and inserting in lieu thereof $1,716,000,- 

000” ; and

(2) by striking out “ $1,325,000,000” and inserting in lieu thereof $1,375,000,- 

000” .

Approved June 30, 1965.

Public Law 8 9 -7 9

8 9th Congress, H. R. 5 3 0 6

July 21, 1965

AN ACT

To continue the authority of domestic banks to pay interest on time deposits of

foreign governments at rates differing from those applicable to domestic depositors.

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That the last sentence of the fourteenth paragraph (12 U.S.C. 371b) of section 19 of the Federal Reserve Act is amended by 

changing “ the effective date of this sentence and ending upon the expiration of 

three years after such date,” to read “ October 15, 1962, and ending on October 

15, 1968,” .

Sec. 2. The last sentence of section 18(g) of the Federal Deposit Insurance 

Act (12 U.S.C. 1828(g)) is amended by changing “ the effective date of this sentence and ending upon the expiration of three years after such date,” to read 

“ October 15, 1962, and ending on October 15, 1968,” .

Approved July 21, 1965.

Public Law 89-81

8 9th Congress, S. 2 0 8 0

July 23, 1965

AN ACT

To provide for the coinage of the United States.

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 “ Coinage 

Act of 1965” .

TITLE II—AMENDMENTS TO EXISTING LAW 

“ §337. Coins as security for loans

“ Whoever lends or borrows money or credit upon the security of such coins 

of the United States as the Secretary of the Treasury may from time to time

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FEDERAL BANKING LEGISLATION—1965 83

designate by proclamation published in the Federal Register, during any period 

designated in such a proclamation, shall be fined not more than $10,000 or imprisoned not more than one year, or both.”

(b) The table of sections at the beginning of such chapter is amended by 

adding at the end:

“ 337. Coins as security for loans.”

(c) The amendments made by this section shall apply only with respect to 

loans made, renewed, or increased on or after the 31st day after the date of 

enactment of this Act.

Approved July 23, 1965.

Public Law 89-117

8 9 th Congress, H. R. 7 9 8 4

A ugust 10, 1965

AN ACT

To assist in the provision of housing for low- and moderate-income families, to

promote orderly urban development, to improve living environments in urban

areas, and to extend and amend laws relating to housing, urban renewal, and

community facilities.

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 “ Housing 

and Urban Development Act of 1965” .

TITLE XI— MISCELLANEOUS 

FEDERAL RESERVE ACT 

76 Stat. 663. 12 USC 371.

Sec. 1111. Section 24 of the Federal Reserve Act is amended by striking out 

“ eighteen months” , wherever it appears m the third paragraph, and inserting 

in lieu thereof “ twenty-four months” .

Approved August 10, 1965.

Public Law 89-145

8 9th Congress, S. 1309

A ugust 28, 1965

AN ACT

To authorize checks to be drawn in favor of financial organizations for the credit

of a person’s account, under certain conditions.

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That section 3620 of the Revised Statutes, 

as amended (31 U.S.C. 492), is amended—

(1) by inserting the designation “ (a)” before the word “ It” at the beginning 

thereof; and

(2) by adding the following new subsections at the end thereof:

“ (b) Notwithstanding subsection (a) or any other provision of law, and under 

regulations to be prescribed by the Secretary of the Treasury, the head of an 

agency may, upon the written request of a person to whom a payment is to be 

made, authorize a disbursing officer to make the payment—

“ (1) by sending to the financial organization designated by that person a 

check that is drawn in favor of that organization and for credit to the account 

of that person; or

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“ (2) if more than one person to whom a payment is to be made designates 

the same financial organization, by sending to the organization a check that is 

drawn in favor of the organization for the total amount due those persons and 

by specifying the amount to be credited to the account of each of those persons. 

In this subsection, ‘agency’ means any department, agency, independent establishment, board, office, commission, or other establishment in the executive, 

legislative, or judicial branch, of the Government, any wholly owned or controlled 

Government corporation, and the municipal government of the District of Columbia; ‘financial organization’ means any bank, savings bank, savings and loan 

association or similar institution, or Federal or State chartered credit union.

“ (c) Payment by the United States of a check, drawn in accordance with subsection (b) and properly endorsed, shall constitute a full acquittance for the 

amount due to the person requesting payment.”

Approved August 28, 1965.

Public L aw 89-175

8 9th Congress, H. R. 5 2 8 0

S eptem ber 9, 1965

AN ACT

To provide for exemptions from the antitrust laws to assist in safeguarding the

balance of payments position of the United States.

Be it enacted by the Senate and House of Representatives of the United States

of America in Congress assembled, That it is declared to be the policy of Congress to safeguard the position of the United States with respect to its international balance of payments. To effectuate this policy the President shall undertake continuous surveillance over the private flow of dollar funds from the 

United States to foreign countries, the solicitation of cooperation by banks, investment bankers and companies, securities brokers and dealers, insurance companies, finance companies, pension funds, charitable trusts and foundations, and 

educational institutions, to curtail expansion of such flow, and the authorization 

of such voluntary agreements or programs as may be necessary and appropriate 

to safeguard the position of the United States with respect to its international 

balance of payments.

Approved September 9, 1965.

RULES AND REGULATIONS OF THE CORPORATION

TITLE 12— BANKS AND BANKING 

CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION

PART 329— PAYMENT OF DEPOSITS AND INTEREST THEREON BY INSURED

NONMEMBER BANKS

§329.6 maximum rates 12 of interest payable on time and savings deposits by

insured nonmember banks—(a) Maximum rate of 4 1/ i percent.

No insured nonmember bank shall pay interest accruing at a rate in excess of 

51/2 oercent per annum, compounded quarterly,13 regardless of the basis upon 

which such interest may be computed, on any time deposit.

(b) Maximum rate of 4 percent. No insured nonmember bank shall pay interest 

accruing at a rate in excess of 4 percent per annum, compounded quarterly, 

regardless of the basis upon which such interest may be computed, on any

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RULES AND REGULATIONS OF THE CORPORATION 85

savings deposit. [Effective Dec. 7, 1965] (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. 65-13221; 

Filed Dec. 9, 1965; 8:47 a.m.]

12 The maximum rates of interest payable by insured nonmember banks on time and

savings deposits as prescribed herein are not applicable to any deposit which is payable

only at an office of an insured nonmember bank located outside of the States of the

United States and the District of Columbia.

13 This limitation is not to be interpreted as preventing the compounding of interest at

other than quarterly intervals: Provided, That the aggregate amount of such interest so

compounded does not exceed the aggregate amount of interest at the rate above prescribed when compounded quarterly.

IN T E R P R E T A T IO N 

The purpose of the amendment is to increase the rate of interest that insured 

State nonmember banks are permitted to pay on time deposits, including certificates of deposit. Formerly, insured State nonmember banks were permitted to 

pay interest up to 41/2 percent per annum on a time deposit with maturity of 

90 days or more and to pay interest up to 4 percent on any such deposit with 

maturity of less than 90 days. Insured State nonmember banks are now permitted 

to pay interest up to 51/2 percent per annum on any time deposit with maturity 

of 30 days or more.

INTERNAL REVENUE RULING 65-921

SECTION 166— BAD DEBTS

Revised method for computing annual additions to reserves for bad debts by 

banks for taxable years ending after December 31, 1964.

Mimeograph 6209, C.B. 1947-2, 26, and Revenue Ruling 54-148, C.B. 1954-1, 60,

superseded; Revenue Procedure 64-51, C.B. 1964-2, 1003, Revenue Rulings 57-210,

C.B. 1957-1, 94, 57-509, C.B. 1957-2, 145, 58-259, C.B. 1958-1, 116, 63-122, C.B.

1963-2, 98, and G.C.M. 25605, C.B. 1948-1, modified.

SECTION 1. PURPOSE.

The purpose of this Revenue Ruling is to provide a uniform percentage for 

computing annual additions to reserves for bad debts by banks in order to 

minimize the large differences in permissible reserves now existing among banks 

under prior rulings... .

SEC. 3. UNIFORM RESERVE RATIO.

In lieu of reserve computations made through the use of a loss experience 

factor determined on an individual basis as provided in section 7 of this Revenue 

Ruling, a bank will be allowed deductions for additions to its reserve for bad 

debts until the reserve equals 2.4 percent of loans outstanding at the close of the 

taxable year, subject to the exceptions and limitations prescribed in sections 4, 5, 

and 6 of this Revenue Ruling.

SEC. 4. RESERVE LESS THAN UNIFORM RATIO.

If the dollar balance of a bank’s reserve, as of the close of its taxable year 

immediately preceding the year of the change, is less than 2.4 percent of loans 

outstanding at such time, the amount of the difference (referred to herein as the 

deficiency in the reserve) may be included in the bank’s annual addition to the 

reserve in an amount not exceeding one-tenth of the deficiency in the reserve, 

commencing with the year of the change. Such amount need not be added in

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any specific taxable year but not more than one-tenth of the deficiency will be 

permitted in any one year. A bank computing its annual reserve addition under 

this section will also be permitted to include in such addition an amount equal 

to net bad debts charged to the reserve during the year. Further, it will be 

permitted to include in such addition 2.4 percent of the increase in its loans 

outstanding at the end of the taxable year over loans outstanding at the end 

of the year preceding the year of change, to the extent that a reserve addition 

with respect to such increase has not been taken in a prior year. The sum of the 

foregoing amounts, however, may not exceed an amount sufficient to increase the 

reserve to 2.4 percent of outstanding loans at the end of the taxable year. Thus, 

if a decrease in a bank’s year-end outstanding loans has resulted in a reserve 

ratio in excess of 2.4 percent, no addition to the reserve would be permitted for 

that year. If a bank changes to the reserve method of accounting, it shall be 

treated, for purposes of this section, as having a reserve of zero for the taxable 

year immediately preceding the year of the change.

SEC. 5. RESERVE EXCEEDING UNIFORM RATIO.

If the dollar balance of a bank’s reserve, as of the close of its taxable year 

ending in 1964, exceeds 2.4 percent of loans outstanding at such time, the addition to the reserve in any taxable year shall not increase the reserve above the 

greater of (i) such dollar balance, or (ii) 2.4 percent of loans outstanding at the 

close of the taxable year. Thus, a bank which has reserves exceeding 2.4 percent 

of outstanding loans may maintain the dollar balance of its reserve by making 

additions to its reserve equal to the net amount of bad debts charged to the 

reserve during the year. Notwithstanding the preceding rules of this section, if 

the amount of loans outstanding at the close of the taxable year is less than the 

amount of loans outstanding at the close of the taxable year ending in 1964, the 

addition to the reserve shall not increase the reserve at the close of the taxable 

year to a percentage of outstanding loans which is larger than the percentage 

which the reserve bore to outstanding loans at the close of the taxable year ending in 1964.

SEC. 6. MAXIMUM ANNUAL RESERVE ADDITION.

Notwithstanding the provisions of sections 4 and 5 of this ruling, the addition 

to the reserve that a bank will be permitted in a taxable year through the use 

of the uniform reserve ratio shall not exceed an amount equal to 0.8 percent of 

loans outstanding at the end of the taxable year, or an amount sufficient to bring 

the reserve to 0.8 percent of loans outstanding at the end of the taxable year, 

whichever amount is greater.

SEC. 7. PROBABLE EXPERIENCE METHOD.

In lieu of reserve computations made through the use of the uniform reserve 

ratio under sections 3 through 6 of this Revenue Ruling, a bank may compute 

its annual reserve additions under the method provided in this section. If a bank 

so computes its addition, it must establish, to the satisfaction of the District Director of Internal Revenue, that the amount computed is necessary in order to 

absorb the bad debts probably arising on loans outstanding at the close of the 

taxable year. In such event, the reasonableness of the proposed addition for the 

taxable year shall be determined under the provisions of section 166(c) of the 

Code in light of the facts existing at the close of such year. Thus, the reasonableness of the addition shall depend upon the total amount of the existing reserve 

and current business conditions, the nature of the bank’s loans, the bank’s past 

experience, and other factors, which may reasonably be expected to have a 

significant effect on the collection of the loans outstanding at the close of the 

taxable year. The reasonableness of the addition shall not, however, be based 

upon mere speculation, possibility, or contingency. For purposes of this section, 

the addition to the reserve for any taxable year will be regarded as reasonable if 

it does not increase the balance of the reserve (as of the close of such year) 

above an amount equal to the total amount of loans outstanding at the close of 

such year multiplied by the “ moving average experience percentage” for such

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INTERNAL REVENUE RULING 87

year. In determining the moving average experience percentage, reference shall 

be made to the bad debt experience of the bank with respect to its loans for a 

6-year period comprising the taxable year and the 5 preceding taxable years. The 

moving average percentage shall be computed as the ratio which the total amount 

of net bad debts sustained on loans during such 6-year period bears to the 

sum of the total amounts of loans outstanding at the close of each taxable year 

in such period.

If the bank has not been in existence for the full 6-year period, then, for the 

portion of such period during which it was not in existence, the taxpayer may 

use the average bad debt experience of comparable banks with respect to comparable loans.

SEC. 8. DEFINITIONS OF TERMS.

.01 The term “ banks” as used herein means banks or trust companies incorporated and doing business under the laws of the United States (including 

laws relating to the District of Columbia), of any State, or of any Territory, a 

substantial part of the business of which consists of receiving deposits and 

making loans and discounts. Such term does not include a mutual savings bank 

not having capital stock represented by shares, a domestic building and loan 

association as defined in section 7701(a)(19) of the Code, or a cooperative bank 

as defined in section 7701(a)(32) of the Code.

.02 The term “ loans” as used in sections 3 through 6 of this ruling does not 

include Government insured or guaranteed loans to the extent so insured or 

guaranteed.

.03 The term “ the year of change” means the first taxable year ending after 

December 31, 1964, or, in the case of a bank changing from the specific chargeoff method to the reserve method in a later year, the year in which the change is 

made.

SEC. 9. BANKS ON SPECIFIC CHARGE-OFF METHOD.

Where a bank on the specific charge-off method of accounting for bad debts 

desires to change to the reserve method, application to make such a change shall 

be made in the manner prescribed by section 3 of Revenue Procedure 64-51, 

C.B. 1964-2, 1003, but the amount of the reserve at the end of the year of change 

and subsequent years shall be determined in accordance with the provisions of 

this Revenue Ruling.

SEC. 10. EFFECTIVE DATE.

The provisions of this Revenue Ruling are applicable for taxable years ending 

after December 31, 1964. . . .

1 Also released as Technical Information Release 707, dated Mar. 15, 1965.

STATE BANKING LEGISLATION— 1965

In 1965, the legislatures of 48 States held regular sessions and 20 held special sessions. Some of the more important State banking legislation enacted 

during 1965 is summarized below on a State-by-State basis.

A L A B A M A (Regular and three Special Sessions)

Definition of corporate status of production credit associations 

and provision for method of taxation (same as imposed on

national banks) ____________________________________________ HB 153

Authorization for any bank to pledge acceptable assets as 

security for the deposits of public funds ____________________ HB 202

Authorization for certain banks to establish branches ______ HB 540

HB 822

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HB 1125 

HB 1156

HB 59— XX

SB 608

SB 56—X

SB 57— X

SB 68— X

SB 99— X

Enactment of Uniform Commercial Code ... _________ Act 549

SB 2

Withdrawal of funds deposited through error or mistake made Ch. 664

unlawful ____________________________________________________ SB 36

Reserve requirements ________ ___________________________ SB 38

A L A S K A (R e g u la r S e s s io n )

Authorization for banks to act as executors or administrators Ch. 18

of estates of less than $75,000 without giving bond ____________ HB 38

Trustees and investments of mutual savings banks_________ Ch. 89

HB 189

Exemption of State and national banks from the corporation Ch. 80

laws ____________________________________ ____ _______________ HB 237

A R IZ O N A (R e g u la r S e s s io n )

Limitations and exemptions on disclosure of bank records .... Ch. 77

SB 62

Permissible charges on instalment loans___________________ Ch. 86

SB 235

Bond and audit procedures in deposit of public money______ Ch. 73

SB 236

A R K A N S A S (R e g u la r S e s s io n )

Establishment of reserve requirements for State banks ______ Act 52

SB 44

Authorization for a maximum rate of interest that may be paid Act 45

upon deposits by State banks _______________________________ SB 45

Authority for certain banks to establish tellers’ windows_____ Act 93

HB 114

Issuance of pass book permissible rather than mandatory .... Act 421

HB 145

Authorization to issue capital notes ________________________ Act 76

HB 191

Ownership of accounts and deposits_____________________ _ Act 78

HB 200

Requirements and responsibilities of Board of Directors_____ Act 432

HB 256

Receipt and payment of deposits of joint tenants___________ Act 444

HB 331

C A L IF O R N IA (R e g u la r S e s s io n )

Certain acts in re procuring a loan or extension of credit from Ch. 264

financial institutions declared a felony ________________________ AB 735

Security for deposit of public funds_________________________ Ch. 293

AB 954

Restriction on loans by credit unions (no loan in excess of Ch. 915

$1,000 without security) ______________________________________ AB 999

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Dissolution of credit unions_________________________________ Ch. 812

AB 1001

Loan limitations of savings and loan associations____________ Ch. 1966

AB 1613

Fidelity bonding requirements of check sellers and cashiers .... Ch. 870

AB 2006

Real property loans of savings and loan associations________ Ch. 1837

AB 2938

Small loan interest ceilings_________________________________ Ch. 3240

AB 3240

Investment of public pension and retirement funds___________ ACA 57

Bank loans _______________________________________________ Ch. 628

SB 291

C O L O R A D O (R e g u la r S e ssio n )

Chartering and regulation of industrial banks_______________ HB 1476

Criminal penalties for no account and short checks_________ SB 13

Enactment of Uniform Commercial C ode_____________________ SB 104

Investment in trust company stocks by State banks_________ SB 216

Reserves, loans and investments of State banks_____________ SB 304

State bank borrowing ______________________________________ SB 305

Powers of Banking Board __________________________________ SB 308

Regulation of debt adjusters________________________________ SB 318

C O N N E C T IC U T (R e g u la r S e ssio n )

Powers of State banks and trust companies ________________ PA 227

HB 2889

Limitation of powers of State banks and trust companies____ PA 200

HB 3495

Amendment of Uniform Commercial Code __________________ PA 377

HB 4718

D E L A W A R E (R e g u la r S e s s io n )

Collection, payment and dishonor of demand items of banks

and trust companies _________________________________________ HB 27

F L O R ID A (R e g u la r S e s s io n )

Authorization for State banks to issue and sell capital notes

and debentures _____________________________________________ HB 1299

Director of banks and trust companies ______________________ SB 46

Investments of banks and trust companies__________________ SB 63

SB 415

“ Sale of Money Orders Act” _______________________________ SB 138

Banking business by unauthorized persons_________________ SB 432

Enactment of Uniform Commercial Code ___________________ SB 474

Memorial to U.S. Congress urging preservation of the dual

banking system ______________________________________________ SB 917

G E O R G IA (R e g u la r S e ssio n )

Reporting requirements for change in control of a bank______ Act 447

HB 153

Sales of Checks A c t________________________________________ Act 42

SB 2

STATE BANKING LEGISLATION—1965

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Authorization for State banks and trust companies to issue Act 435

capital notes and debentures _______________________________ SB 55

Application for banking charter, additional capital stock ____ Act 440

SB 100

Act 436

SB 113

H A W A II (R e g u la r S e s s io n )

Enactment of Uniform Commercial C ode____________________ Act 208

SB 138

Capital requirements of banks ____________________________ Act 259

SB 927

ID A H O (R e g u la r S e s s io n )

Authorization for banks to issue capital notes and

debentures __________________________________________________ SB 67

Limitations on bank real estate loans_______________________ SB 71

IL L IN O IS (R e g u la r S e s s io n )

Criminal usury _____________________________________________ HB 149

Development Credit Corporation Act _______________________ HB 964

Rate of interest on instalment loans________________________ HB 1136

Amendments to Uniform Commercial Code _________________ SB 713

Bank’s liability for forged checks __________________________ SB 716

Definition of consumer fraud _______________________________ SB 838

Duties of Financial Institutions Department _________________ SB 1024

Amendments to Banking A c t________________________________ SB 1025

IN D IA N A (R e g u la r S e s s io n )

Loans and investments of building and loan associations____ Act 35

HB 1195

Deposit of public funds of municipal corporations___________ HB 1369

Savings bank investments __________________________________ HB 1467

Amendments to Financial Institutions Act __________________ SB 120

SB 290

Definitions of common trust funds _________________________ SB 271

IO W A (R e g u la r S e s s io n )

Enactment of Uniform Commercial Code ____________________ SB 227

K A N S A S (R e g u la r S e s s io n )

Public moneys— bonds and security given by depositories___ HB 631

Rates of interest on deposits ______________________________ HB 845

Interest and other charges on loans _______________________ HB 897

Enactment of Uniform Commercial Code ____________________ SB 4

Examination of banks and trust companies _________________ SB 276

Capital notes and debentures in banks _____________________ SB 278

M A IN E (R e g u la r S e s s io n )

Municipal investments, common trust funds ________________ HB 309

Enactment of Model Joint Obligations Act _________________ HB 499

Amendments to savings bank laws _________________________ HB 620

Amendments to Uniform Commercial Code ________________ HB 816

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Loans and interest defined _________________________________ HB 990

Small loan agencies and companies _______________________ SB 350

SB 509

Amendments to banking law s_______________________________ SB 379

M A R Y L A N D (R e g u la r S e s s io n )

Investments of building or homestead associations _________ HB 617

Reports of banks and trust companies______________________ SB 131

Amendment of Uniform Commercial Code, destruction of

records _____________________________________________________ SB 304

County investments of insured banking institutions _________ SB 502

M A S S A C H U S E T T S (R e g u la r S e s s io n )

Increases in limit of personal loans by savings banks_______ HB 1251

Prohibition of unauthorized banking _______________________ HB 3306

Investments of savings banks ______________________________ HB 3481

Conversion of cooperative banks into Federal savings and

loan associations ____________________________________________ HB 3576

Authorization of trust companies to issue and sell capital

notes and debentures ________________________________________ SB 879

M IC H IG A N (R e g u la r S e s s io n )

An Act to revise and codify the laws relating to financial PA 21

institutions ___________________________________________________ HB 2140

Charitable trusts, rules and regulations______________________ PA 353

HB 2211

Home Improvement Finance Act ___________________________ PA 332

HB 2360

Amendments to Uniform Securities Act _____ _______________ PA 322

SB 553

PA 339

SB 644

M IN N E S O T A (R e g u la r S e s s io n )

Enactment of Uniform Commercial Code ____________________ HB 162

Investments of mutual savings banks _______________________ HB 327

Receipt of deposits by insolvent banking institutions________ HB 399

Bank organization and incorporation ....._____________________ HB 506

Interest on deposits paid by banks and trust companies_____ HB 811

Sale and registration of securities__________________________ SB 1102

M IS S O U R I (R e g u la r S e s s io n )

Rights and powers of banks _______________________________ HB 466

Amendments to Uniform Commercial C ode_________________ SB 241

SB 324

M O N T A N A (R e g u la r S e s s io n )

Branch banking, drive-in, walk-up facilities _________________ SB 67

N E B R A S K A (R e g u la r S e s s io n )

Disclosure of loan rates on sales contracts_________________ LB 4

Personal loans by banks and trust companies_______________ LB 52

Instalment Sales Act _______________________________________ LB 283

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92 FEDERAL DEPOSIT INSURANCE CORPORATION

Bank embezzlement and fraud _____________________________ LB 432

Sale of Checks Act __________________________________ LB 530

N E V A D A (R e g u la r S e ssio n )

Enactment of Uniform Commercial Code ___________________ SB 15

Authorization of banks to sell capital notes and debentures .... SB 111

N E W H A M P S H IR E (R e g u la r S e s s io n )

Verification of savings accounts ___________________________ HB 147

Amendments to Uniform Commercial Code _________________ HB 278

Organization of savings banks ____________________________ HB 432

N E W J E R S E Y (R e g u la r S e s s io n )

Capital stock and surplus of banks ________________________ AB 187

Advertising of loan rates _________________________________ SB 102

N E W M E X IC O (R e g u la r S e s s io n )

Authority of banks to sell capital notes and debentures_____ HB 147

Rates of interest on loans__________________________________ HB 360

N E W Y O R K (R e g u la r S e s s io n )

Resolution calling for a general revision of the banking laws AB 192

Criminally usurious loans __________________________________ AB 5855

Amendments to Uniform Commercial Code _________________ SB 2742

N O R T H C A R O L IN A (R e g u la r S e s s io n )

Enactment of Uniform Commercial Code ___________________ HB 218

N O R T H D A K O T A (R e g u la r S e s s io n )

Enactment of Uniform Commercial Code ___________________ SB 60

Bank loan limitations _____________________________________ SB 196

O H IO (R e g u la r S e s s io n )

Amendments to Uniform Commercial Code _________________ SB 48

O K L A H O M A (R e g u la r S e s s io n )

Banking Code of 1965 (a general revision of the banking 

laws) _______________________________________________________ SB 1

O R E G O N (R e g u la r S e ssio n )

Real estate loans of banks and trust companies ______________SB 145

Maximum interest rates on bank loans________________________SB 266

Sale of Checks Act __________________________________________SB 287

Misrepresentation of financial condition _______________________SB 342

P E N N S Y L V A N IA (R e g u la r S e s s io n )

Licensing of money order and check sale businesses_______ HB 1336

Banking Code of 1965 ____________________________________ SB 665

R H O D E IS L A N D (R e g u la r S e s s io n )

Capital debentures of financial institutions _________________ HB 1648

S O U T H C A R O L IN A (R e g u la r S e s s io n )

Enactment of State Bank Holding Company A c t_____________ HB 1404

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STATE BANKING LEGISLATION 93

T E N N E S S E E (Regular Session)

Authority to issue capital notes and debentures_____________ SB 148

Licensing for selling checks and other instruments_________ SB 646

T E X A S (Regular Session)

Enactment of Uniform Commercial Code ___________________ SB 141

U T A H (Regular Session)

Enactment of Uniform Commercial C ode___________________ SB 46

V E R M O N T (Regular Session)

Authority to issue capital notes and debentures_____________ HB 292

W A S H IN G TO N (Regular Session)

Enactment of Uniform Commercial C ode___________________ SB 122

W E S T V IR G IN IA (Regular Session)

Authority to issue capital notes and debentures_____________ HB 990

W ISC O N SIN (Regular Session)

Legislative study to determine need for branch banks 

and bank holding companies ________________________________ SJR. 98

W Y O M IN G (Regular Session)

Real estate loans of State banks__________________________ _ SB 18

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Federal Reserve Bank of St. Louis
BANKING DEVELOPMENTS

PART THREE

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SUPERVISORY STATUS OF BANKS

Banks operating in the United States at the end of 1965 consisted 

of 13,818 commercial banks and 506 mutual savings banks. All 

but 3 percent were covered by Federal deposit insurance, a protection available to all banks and trust companies incorporated in the 

United States engaged in the business of receiving deposits.

Commercial banks and trust companies may be chartered, that 

is, given authority to operate, by the Federal government or by the 

respective State governments. Mutual savings banks may be chartered only by those State governments that have enabling legislation. Chartering authorities have general supervisory responsibilities, such as presiding at both the inception and liquidation of a 

bank as well as regulating certain activities and structural changes.

Federal participation in bank supervision comes not only through 

deposit insurance and chartering, but also through bank membership in the Federal Reserve System. Such membership is required 

of Federally-chartered banks, but is optional for State-chartered 

banks. About one-sixth of the banks having the option of Federal 

Reserve membership currently exercise that option; these are 

typically the larger banks.

These different avenues of regulatory involvement with banks 

have led to an interwoven supervisory structure. The Comptroller 

of the Currency, who charters national banks, examines and regulates them; he also examines nonnational banks located in the 

District of Columbia. The Federal Reserve Board exercises certain 

authority over all member banks, such as that relating to legal reserve requirements and maximum interest rates payable on time 

deposits. In addition, the Federal Reserve Banks examine State 

banks that are members of the System, and require from them 

periodic reports of condition. Both national banks and State banks 

that are members of the Federal Reserve System are required to 

be insured by the Federal Deposit Insurance Corporation; however, 

the Corporation focuses its supervisory authority, including examination, call reports, and action on applications for mergers and 

branches, upon those insured banks not members of the Federal 

Reserve System.

The first full year of experience in a new area of Federal banking 

supervision was completed in 1965 under terms of Public Law 

88-593, which requires an insured bank to report to the appropriate 

Federal banking authority any change in ownership in the bank’s 

outstanding voting stock resulting in a change in the control of 

the bank. During 1965 there were 409 changes in control reported 

under these terms, almost two-thirds of them relating to banks 

supervised by the Corporation. Most of the banks reporting changes

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98 FEDERAL DEPOSIT INSURANCE CORPORATION

in control were relatively small, four-fifths of them having assets 

of less than $10 million. Three-fourths of the changes occurred 

in unit banking States. Under an allied requirement, 191 insured 

banks reported loans in 1965 which were secured by 25 percent 

or more of the stock of a bank. The underlying purpose of the 

statute is to alert the Corporation to changes in control, thereby 

enabling it to evaluate the new management.

This tripartite structure of Federal supervision of insured banks 

is buttressed by State supervision of banks chartered by the individual States and subject to the respective State regulations. Where 

Federal controls impinge on State banks, as in the case of bank 

examination and reporting requirements, cooperation between the 

supervisory agencies has tended to minimize the burden on both 

banks and supervisors. State-chartered banks that are not insured 

by the Federal Deposit Insurance Corporation are examined or

TABLE 16. ALL BANKS IN THE UNITED STATES CLASSIFIED BY SUPERVISORY 

STATUS AND FEDERAL DEPOSIT INSURANCE PARTICIPATION, 

DECEMBER 31, 1965 1

Supervisory status

All banks

Commercial banks 

and nondeposit 

trust companies 2

Mutual savings 

banks

Total Insured

Noninsured Insured

Noninsured Insured

Noninsured 3

N u m b er of banks and trust

com panies—to ta l.................. 14,324 13,876 448 13,547 271 329 177

Banks of d ep o sit........................ 14,274 13,876 398 13,547 221 329 177

Examined by and reporting to: 4

Comptroller of the Currency 5.......... 4,822

1,401

7,653

448

4,822

1,401

7,653

4,822

1,401

7,324

State authorities and Federal 

Reserve Banks 6..............................

State authorities and Federal 

Deposit Insurance Corporation 7.. 

State authorities only 8.....................

329

448 221 177

Tru st com panies not regularly engaged in deposit

banking * ................................... 50 50 50

P ercentage insured and nonin su red:

All banks and trust companies............ 100.0 %

100.0

96.9%

97.2

3.1%

2 .8

98.0%

98.4

2 .0%

1.6

65.0%

65.0

35.0%

Banks of deposit.................................... 35.0

Trust companies not regularly engaged 

in deposit banking............................. 100.0 100.0 100.0

1 Includes the 50 States, District of Columbia, and other areas.

2 Includes all banks and trust companies, except mutual savings banks, engaged in the business of accepting deposits 

from the public, and trust companies engaged in fiduciary business but not regularly engaged in deposit banking.

3 171 of these banks in Massachusetts were insured by the Mutual Savings Central Fund, Inc.

4 Classification relates to regular examination and periodic submission of reports of condition (assets and liabilities).

5 Includes all national banks and 7 nonnational banks in the District of Columbia; of the latter, 4 are members of the 

Federal Reserve System.

6 Includes all State banks that are members of the Federal Reserve System except 4 commercial banks in the District 

of Columbia.

7 Includes all insured banks not members of the Federal Reserve System except 3 in the District of Columbia.

8 Includes 22 branches of foreign banks located in 3 States, Puerto Rico and the Virgin Islands. Also includes 66

unincorporated banks located in 7 States. Unincorporated banks in 3 of these States (Georgia, Iowa, and Texas) are not 

examined by the State authorities, and do not submit detailed periodic condition reports to the State authorities. Financial 

statements of 4 unincorporated banks were not available to the Corporation at the close of 1965.

9 Subject to supervision by State authorities only, except for 1 which is a member of the Federal Reserve System but 

not insured by the Corporation. Excludes 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.

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SUPERVISORY STATUS OF BANKS 99

otherwise supervised only by State authorities.

About one-half of the 14,324 banks operating on December 31, 

1965 were supervised by the Federal Deposit Insurance Corporation and the respective State authorities; one-third by the Comptroller of the Currency; and about one-tenth by the Federal Reserve 

Banks and the respective State authorities. The 448 noninsured 

banks were subject to examination only by their respective State 

authorities. Every bank is subject to examination and regulation 

under Federal law or by the banking authority of the State, Territory, or District in which it is located.

The number of banks operating on December 31,1965, classified 

by supervisory status, type of bank, and participation in Federal 

deposit insurance, is shown in Table 16. Percentage distributions 

of the number of banks and amount of assets held by banks 

supervised by the different agencies are shown in Chart D.

NUMBER OF BANKING OFFICES

The number of banking offices in the United States increased by

1,231 in 1965, a somewhat slower growth than occurred in 1964. 

Nearly all of the growth in number of offices during 1965, as in

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100 FEDERAL DEPOSIT INSURANCE CORPORATION

other recent years, was in branches. Most were new branches, as 

distinct from branches arising from mergers.

There were 30,958 banking offices in the United States on December 31, 1965, slightly over one-half of them branches of banks. 

The total of offices includes offices of both commercial banks and 

mutual savings banks. An analysis of the increases and decreases 

in banking offices in 1965 is shown in Table 17.

TABLE 17. ANALYSIS OF CHANGES IN NUMBER OF BANKS AND BRANCHES IN 

THE UNITED STATES DURING 1965 '

Type of office and change Total

Commercial 

banks and 

trust 

companies2

Mutual

savings

banks

ALL BANKING OFFICES

Number, December 31, 1965....................................................................................... 30,958 29,736 1,222

N et change during y e a r....................................................................... +1,231 +1,190 +41

BANKS

Number, December 31, 1965........................................... 14,324 13,818 506

N et change during y e a r....................................................................... +43 +43

Banks beginning operations..................................................................................... 202 199 3

Banks ceasing operations......................................................................................... 159 156 3

Absorbed................................................................................................................ 149 147 2

Suspended.............................................................................................................. 9 9

Other liquidation................................................................................................... 1 1

BRANCHES3

Number, December 31, 1965....................................................................................... 16,634 15,918 716

N et change during y ea r....................................................................... +1,188 +1,147 +41

Branches beginning operations............................................................................... 1,247 1,203 44

Succeeded absorbed banks.................................................................................. 130 128 2

Other new branches.............................................................................................. 1,117 1,075 42

Branches discontinued............................................................................................. 54 52 2

Other or unclassified changes—net........................................................................ - 5 - 4 - 1

1 Excludes changes not affecting number of banks or branches of commercial banks and trust companies or of mutual 

savings banks.

2 Includes all banks and trust companies, except mutual savings banks, engaged in the business of accepting deposits 

from the public, and trust companies engaged in fiduciary business but not regularly engaged in deposit banking.

3 Includes facilities established in or near military or other Federal Government installations at the request of the 

Treasury Department or the Commanding Officer of the installation.

Back data: See Annual Reports for 1964, page 136; and for 1963, p. 60.

The number of banking offices is influenced both by supervising 

authorities and business opportunities. Each State has controls 

over the opening of new banks; and every State but one, Wyoming, 

has statutes regulating branching. In about one-third of the States, 

unit banking prevails; in another one-third, limited-area branching 

is permitted; and in one-third, statewide branching is prevalent. 

National banks are chartered by the Comptroller of the Currency, 

and branches of national banks are opened in accordance with the 

branching regulations of the respective States.

In each year from 1948 through 1962 there was a net decline in 

the number of banks. This trend was sharply reversed in 1963 and

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NUMBER OF BANKING OFFICES 101

1964 when the net increase in banks amounted to 141 and 189, 

respectively. Growth continued in 1965, but at a slower pace, as the 

net increase in operating banks slowed to 43.

The increase of 1,188 in the number of branches during 1965 was 

slightly greater than the growth in 1964. This rise continued the 

growth that has occurred in each year since 1933. From 1961 to

1965 there was a 38 percent increase in bank branches. During 

this period branches of State banks grew 27 percent, while 

branches of national banks increased 49 percent. At the end of 

1965 slightly over one-half of all branches were branches of national banks, though such banks comprised but a third of all banks. 

Numbers of banks and branches in 1961 and 1965, distributed by 

class of bank, are shown in Chart E.

ASSETS AND LIABILITIES OF BANKS

Assets of all banks totaled $437 billion at the end of 1965. About 

87 percent of total resources, or $379 billion, was held by commerical banks, and $58 billion by mutual savings banks.

The increase in bank assets during 1965 amounted to $34 billion, 

or 8.6 percent, slightly less than the rate of growth in 1964, but 

above the rate of any other year since World War II. Assets and

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102 FEDERAL DEPOSIT INSURANCE CORPORATION

liabilities of all banks in 1961,1964 and 1965, along with percentage 

changes, are shown in Table 18.

TABLE 18. AMOUNTS AND PERCENTAGE CHANGES IN ASSETS AND 

LIABILITIES OF ALL BANKS IN THE UNITED STATES, DECEMBER 30, 1961, 

DECEMBER 31, 1964 and 1965

Amount (in millions) Percentage change

Asset or liability item

1965 1964 1961 1961-1965 1964-1965

Assets—to ta l................................ $437,119 $402,673 $322,336 35.6% 8.6%

Cash and funds due from banks___ 62,060 61,644 57,487 8 .0 1.0

U. S. Government obligations........... 65,158 68,921 72,822 -1 0 .5 - 5 .5

Other securities.................................. 50,459 44,362 29,719 69.8 13.7

Loans and discounts 1....................... 248,104 217,658 154,843 60.2 14.0

Other assets........................................ 11,338 10,088 7,466 51.9 12.4

L iab ilities and capital accounts—to ta l........................ 437,119 402,673 322,336 35.6 8.6

Deposits—total................................... 386,541 357,565 287,991 34.2 8.1

Other liabilities................................... 15,524 12,812 8,050 92.8 21.2

Capital accounts—total...................... 35,055 32,295 26,296 33.3 8.5

Loans—gross total 2.................. 252,350 221,446 157,689 60.0 14.0

Commercial and industrial................ 72,052 60,776 45,538 58.2 18.6

Agricultural (except real estate)___ 8,227 7,522 6,263 31.4 9.4

For carrying securities....................... 8,521 8,418 6,213 37.1 1.2

Real estate loans................................ 94,293 84,532 59,587 58.2 11.5

Other loans to individuals................ 46,354 40,521 28,277 63.9 14.4

To financial institutions..................... 17,619 14,469 8,374 110.4 21.8

A ll other loans.................................... 5,284 5,206 3,436 53.8 1.5

D eposits—to ta l............................

Business and personal deposits:

386,541 357,565 287,991 34.2 8.1

Demand 3 ........................................ 146,421 141,562 129,586 13.0 3.4

Tima and savings.......................... 183,110 162,054 113,018 62.0 13.0

Government deposits:

States and subdivisions................ 26,616 23,504 17,843 49.2 13.2

United States.................................. 5,8444 6,814 6,254 - 6.6 -1 4 .3

Interbank deposits.............................. 24,5495 23,6316 21,2906 15.3 3.9

1 Net of valuation reserves.

2 Includes valuation reserves.

3 Includes certified checks, letters of credit, etc.

4 Includes postal savings deposits.

5 Includes domestic and foreign interbank deposits, and deposits of foreign governments.

6 Includes postal savings deposits, domestic and foreign interbank deposits, and deposits of foreign governments.

Note: Due to rounding, components may not add to totals.

Growth in bank assets in 1965 was but one dimension of a flourishing economy which at year-end was in the 58th consecutive 

month of expansion. Output of goods and services during 1965 rose 

to a record $681 billion. Employment was at a peak of 72 million, 

while unemployment was the lowest since 1957. Both capital outlays and consumer expenditures reached new highs, placing 

mounting pressure on capacity which itself expanded sharply 

during the year.

Loans. In their role as the major supplier of credit, banks helped 

to shape, and were themselves influenced by, these economic 

developments. Total loans of all banks rose 14.0 percent during 

the year, continuing the vigorous growth of this category of assets. 

At year-end, loans comprised 56.8 percent of total assets, up from

48.0 percent in 1961.

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ASSETS AND LIABILITIES OF BANKS 103

Commercial and industrial loans, long the major type of credit 

supplied by banks, advanced 18.6 percent during 1965, more than 

twice the average annual rate of expansion from 1961 to 1964. The 

rapid growth in business loans, particularly since 1963, represented 

in part a resurgence of commercial banks’ traditional role in such 

financing, following a period when business concerns were meeting a larger share of their financial needs from internal sources, 

particularly depreciation allowances and retained profits. Though 

such sources provided substantially more funds in 1965 than in

1964, they were not sufficient to meet the larger demands generated by the accelerated rate of economic expansion. Business 

firms, therefore, have turned increasingly, and notably in 1965, to 

banks and other suppliers of intermediate and longer-term business 

credit.

Further penetration of the market for longer-term credit was 

represented by the banks' 11.5 percent increase in total real estate 

loans in 1965, notwithstanding a relatively sluggish year for residential construction. Indeed, this increase exceeded the 1965 

percentage rise in outstanding mortgages held by savings and 

loan associations, the primary lenders in this field. The nearly $10 

billion increase in banks’ real estate loans was not, however, 

wholly dependent on new residential construction, but represented 

in considerable part refinancing of mortgages on existing residences along with a 14.1 percent advance in nonresidential real 

estate loans.

Consumer loans extended by banks totaled $46 billion at the end 

of 1965, up 14.4 percent during the year. Banks supplied about 

half of the increase in total instalment credit during the year, maintaining their dominance in this type of lending. They gave further 

support to personal expenditures through their loans to nonbank 

financial institutions; loans to sales finance companies and other 

nonbank lenders increased over one-fifth in 1965 to a year-end 

total of $13 billion.

Securities. The types of assets held by banks reflect in general 

the kinds of debt instruments available and suitable for bank 

ownership, tailored where feasible to considerations of yield. In 

contrast to the five-fold advance in private debt since World War

II, public debt during this period increased only by one-third. Most 

of this increase in public debt was in obligations of State and local 

governments, which has risen even faster than private debt since 

1945, as outlays for schools, utilities, roads and similar services 

have exceeded rising State and local revenues and Federal grantsin-aid.

Though Federal government debt increased slightly in 1965, banks

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104 FEDERAL DEPOSIT INSURANCE CORPORATION

reduced their holdings of Federal obligations a little over 5 percent, 

putting the proceeds into more remunerative alternatives. Those 

alternatives included, along with the pressing loan demands, the 

growing obligations of State and local governments, whose taxexempt status continued to make them attractive. Banks increased 

their holdings of “ municipal” obligations by $5 billion, or 14.9 percent during 1965, absorbing almost one-half of total municipal bond 

offerings during the year.

Deposits. Total deposits of all banks approached $387 billion on 

December 31, 1965, an increase of 8.1 percent during the year. 

Nearly $334 billion was in commercial banks and $53 billion in 

mutual savings banks.

Continuing the trend of the last few years, most of the growth in 

deposits in 1965 was in time (including savings) deposits. Such 

deposits of business and individuals rose 13.0 percent during 1965,

accounting for nearly three-fourths of the expansion in deposit 

volume. Demand deposits of business and individuals increased 3.4

percent during the year, about half as fast as in 1964. Chart F 

shows annual changes in demand and time deposits of business 

and individuals held by all banks from 1961 to 1965.

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ASSETS AND LIABILITIES OF BANKS 105

Deposits are the main source of bank funds, and the expanding 

role of banks in the credit markets reflects a renewed ability of 

banks to compete for liquid balances. In the decade of the 1950’s, 

banks lost deposits of interest-sensitive investors; large corporations and others tended to shift temporarily surplus funds out of 

idle (and non-interest bearing) demand deposit balances into such 

short-term instruments as Treasury bills and commercial paper, 

while longer-term funds gravitated to institutions paying a higher 

return, including savings and loan associations. Starting in 1957, 

and accelerating since 1962, a series of liberalizing revisions has 

increased the maximum rates that insured commerical banks may 

pay on savings and time deposits. Banks have responded to the 

opportunity by steadily increasing their rates and by developing 

new instruments to retain and attract such deposits.

Time certificates of deposit (“ CD’s” ) have been the principal 

medium for banks’ sharpened competitiveness in obtaining funds 

for expansion. Such certificates evidence deposits with a bank 

which bear a stated rate of interest and are payable on a specific 

date or after a required period of notice, with maturities of not 

less than 30 days and usually not more than one year after issuance. In certain areas of the United States, time certificates have 

been issued for many years, largely to individuals by relatively 

small banks. Most of these were for relatively small amounts and 

were typically nonmarketable. The new circumstances which have 

made them a significant instrument since 1961 have been the 

development of a secondary market which provides high liquidity 

for negotiable CD’s, the increasingly attractive yields, and the 

lower reserve requirements applicable to time deposits. Through 

their use, banks have not only retained types of funds which 

formerly escaped but have attracted funds from new sources. Their 

broad appeal to business corporations, State and local governments, individuals, and other financial institutions had raised negotiable CD’s to a total of $16 billion at the end of 1965.

Borrowed funds. As pressures impinged increasingly on their 

liquidity positions during 1965, banks sought additional short-term 

funds apart from deposits. The distinction between deposits and 

certain types of borrowings has been confused somewhat by differences in supervisory requirements. Notwithstanding their differences, deposits and borrowings have in common the function of 

providing the short-term funds which were obtained in increasing 

amount in 1965.

Between the end of 1964 and the end of 1965, borrowings of all 

banks increased more than two-thirds to over $41/2 billion. There 

was somewhat heavier reliance than in 1964 on the discount winDigitized for FRASER 

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106 FEDERAL DEPOSIT INSURANCE CORPORATION

dow of Federal Reserve Banks, and even greater willingness to 

borrow from other sources. One such source was “ Federal funds” ; 

that is, reserve balances at Federal Reserve Banks that member 

banks borrow and lend to each other, typically for one-day periods, 

to adjust reserve positions. Call report information, obtained separately for Federal funds for the first time, showed they totaled 

nearly $21/2 billion at the end of 1965. Other borrowing instruments 

used considerably in 1965 were promissory notes and repurchase 

agreements.

Capital funds. Total capital and surplus accounts of all banks 

exceeded $35 billion on December 31, 1965, an increase of 8.5 

percent during the year. Over $30 billion was held in commercial 

banks and nearly $5 billion in mutual savings banks.

Total capital and surplus accounts increased $2,760 million in

1965. Over 55 percent of the growth came from retained earnings, 

and nearly one-fourth from common stock. Again, as in 1964, 

capital accounts were strengthened substantially by the sale of 

capital notes and debentures. In the two years ended December 

31, 1965, capital notes and debentures of all banks increased from 

$168 million to $1,701 million. This increase of $1,533 million, while 

representing fewer than 200 issues, comprised 30 percent of the 

growth in total capital and surplus accounts of all banks during 

the period. The greater resort to use of borrowed capital has been 

stimulated generally by tax advantages and the possibility, through 

greater leverage, of increased earnings.

The ratio of total capital and surplus accounts to total assets of 

all banks was 8.0 percent at the end of 1965, the same as a year 

earlier.

INCOME OF INSURED BANKS

Insured commercial banks. Total income of insured commercial 

banks amounted to $17.2 billion in 1965, a gain of 12.4 percent from 

1964. The advance was due primarily to an increase in loan income 

of almost 15 percent. Income from U. S. Government securities 

declined slightly while income from “ other” securities, including 

mainly obligations of States and subdivisions, rose 18.5 percent. 

Sizable gains occurred also in service charges on deposit accounts, trust department earnings, and in other current operating 

revenues. Recoveries, transfers from valuation reserves, and profits 

on securities sold were likewise greater than in 1964. Sources and 

disposition of income of insured commercial banks in 1961, 1964 

and 1965 are shown in Table 19.

The results in 1965 followed in part certain existing trends evident in Chart G, which shows percentage changes in income from

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INCOME OF INSURED BANKS 107

TABLE 19. SOURCES AND DISPOSITION OF TOTAL INCOME OF INSURED 

COMMERCIAL BANKS, 1961, 1964, AND 1965

Income

Amount 

(in millions) Percentage distribution

1965 1964 1961 1965 1964 1961

Total in co m e................................. $17,208 $15,347 $11,778 100.0% 100.0% 100.0%

Sources

Loans.................................................... 11,205 9,785 7,009 65.1 63.8 59.5

U. S. Government obligations.......... 2,225 2,240 1,902 13.0 14.6 16.2

Other securities.................................. 1,285 1,085 629 7.5 7.1 5.3

Service charges on deposits............. 843 781 630 4.9 5.1 5.4

Other current income........................ 1,260 1,132 900 7.3 7.3 7.6

Recoveries, etc..................................... 390 322 708 2.3 2.1 6.0

Disposition

Salaries and wages............................. 4,365 4,082 3,336 25.4 26.6 28.3

Interest on deposits.......................... 5,071 4,088 2,107 29.5 26.6 17.9

Other current expenses..................... 3,051 2,727 1,998 17.7 17.8 17.0

Charge-offs, etc................................... 1,178 1,017 935 6.8 6.6 7.9

Income taxes...................................... 1,029 1,148 1,406 6.0 7.5 11.9

Dividends to stockholders.. ............. 1,202 1,088 895 7.0 7.1 7.6

Additions to capital accounts........... 1,312 1,195 1,101 7.6 7.8 9.4

Note: Due to rounding, components may not add to totals.

1961 to 1965. Income on securities other than U. S. Government 

obligations experienced the greatest percentage growth, more than 

doubling between 1961 and 1965. Loan income, which advanced 

60 percent in the four years, accounted for almost four-fifths of 

the increase in total income.

CHART G

INTEREST PAID ON DEPOSITS BY INSURED COMMERCIAL BANKS 

INCREASED 141 PERCENT BETWEEN 1961 AND 1965 

PERCENTAGE CHANGE: 1961 to 1965

SOURCES OF INCOME

LOANS

U.S. GOVERNMENT OBLIGATIONS 

OTHER SECURITIES

SERVICE CHARGES ON DEPOSIT ACCOUNTS 

OTHER CURRENT OPERATING INCOME 

RECOVERIES

DISPOSITION OF INCOME

SALARIES AND WAGES 

INTEREST ON DEPOSITS 

OTHER CURRENT OPERATING EXPENSES 

CHARGE-OFF, ETC.

INCOME TAXES

DIVIDENDS TO STOCKHOLDERS 

ADDITIONS TO CAPITAL ACCOUNTS

i

W /M ///////M

u

W /////M /////////////////////////M

m m

W ////////M

m m

W /////////////M

m m

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108 FEDERAL DEPOSIT INSURANCE CORPORATION

Income from loans, totaling $11.2 billion in 1965, comprised 

slightly over 65 percent of insured commercial banks’ total income 

as compared to less than 60 percent in 1961. At the same time, 

income from U. S. Government securities declined from 16.2 percent to 13.0 percent, while income from other securities rose from 

5.3 to 7.5 percent of the total.

Growth in loan income has reflected principally the expansion 

of loan volume associated with the sustained uptrend of the economy, and greater diversification of credit outlets. Rising costs of 

operation have been responsible in part for some shifting in recent 

years in commercial bank loans and investments in the direction 

of higher yielding, less liquid assets, such as mortgages and taxexempt securities. In turn, banks have acquired funds in part by 

liquidation of U. S. Government securities, which generally yield 

a lower return. Although funds moving into new loans and investments have brought generally higher rates, the average rates of 

return in 1965 on total portfolios were only slightly greater than in 

1964.

Increases in operating expenses in 1965, as in other recent 

years, consumed most of the growth in current operating revenues. 

Rapidly rising interest payments on deposits have been responsible

TABLE 20. OPERATING DATA OF INSURED COMMERCIAL BANKS, 

1950, 1955, 1961-1965 1

Item 1950 1955 1961 1962 1963 1964 1965

Current operating revenue per $100 of 

total assets.......................................... $2.36 $3.03 $3.98 $4.13 $4.32 $4.36 $4.49

Net current operating earnings per $100 

of total assets..................................... .89 1.15 1.31 1.23 1.22 1.20 1.16

Income on loans per $100 of loans.......... 3.90 4.47 5.61 5.51 5.55 5.60 5.59

Income on U. S. Government obligations 

per $100 of U. S. Government obligations. . ............................................. 1.66 2.18 2.87 3.17 3.45 3.58 3.76

Income on other securities per $100 of 

other securities.................................. 1.87 2.14 2.66 2.62 2.65 2.82 2.89

Current operating expense per $100 of 

current operating revenue................ 62.15 62.00 67.12 70.24 71.79 72.47 74.21

Salaries, wages, fees, and benefits per 

$100 of current operating revenue.. 31.19 30.28 30.93 29.86 28.88 27.83 25.94

Interest on time and savings deposits 

per $100 of current operating 

revenue................................................ 8.73 10.67 19.00 23.28 25.63 27.25 30.16

Interest paid per $100 of time and 

savings deposits................................. .94 1.35 2.54 2.90 3.09 3.21 3.44

Net current operating earnings per $100 

of total capital accounts.................... 13.22 16.09 16.40 15.33 15.06 15.18 14.54

Net income after taxes per $100 of total 

capital accounts.................................. 8.32 7.69 9.02 8.47 8.56 8.41 8.45

1 Data relate to banks operating thoughout each of the respective years.

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INCOME OF INSURED BANKS 109

TABLE 21. INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES 

AND OTHER AREAS) WHICH REPORTED RESERVES FOR BAD DEBT 

LOSSES ON LOANS PURSUANT TO INTERNAL REVENUE SERVICE 

RULINGS, AND AMOUNT OF SUCH RESERVES,

DECEMBER 31, 1961-1965

1965 1964 1963 1962 1961

C lass of bank N um ber of banks using reserve m ethod

Insured com m ercial banks—total 10,014 8,615 8,270 7,948 7,660

National banks............................................ 3,830 3,382 3,201 3,049 2,970

State banks:

Members of FRS..................................... 1,112 1,013 1,022 1,040 1,045

Not members of FRS.............................. 5,072 4,220 4,047 3,859 3,645

Percentage of banks using reserve method

Insured com m ercial banks—total 74% 64% 62% 61% 58%

National banks........................................... 80 71 69 68 66

State banks:

Members of FRS..................................... 79 70 68 67 65

Not members of FRS.............................. 69 58 56 55 52

Am ount of reserves (in thousands) 1

Insured com m ercial banks—total 53,835,811 $3,354,202 $3,007,517 $2,699,666 $2,402,327

National banks............................................ 2,346,133 1,903,619 1,676,023 1,498,405 1,331,851

State banks:

Members of FRS..................................... 1,015,256 1,032,641 960,413 875,151 781,167

Not members of FRS.............................. 474,422 417,942 371,081 326,110 289,309

1 Reserves set up in accordance with Internal Revenue Service rulings comprise the major portion of valuation 

reserves for loans; the latter totaled $4,011,273,000 on December 31, 1965.

for much of the recent increase in operating expenses, having 

nearly doubled between 1961 and 1964, and increased a further

24.0 percent in 1965. This upward trend of interest payments reflects both the expanding volume of time and savings deposits 

and escalating increases in rates permitted by higher ceilings 

and prompted by growing competition for funds. In 1965 interest 

payments again, as in 1964, exceeded salaries and wages as the 

largest category of expenses, notwithstanding a 6.9 percent increase in total employee compensation during the year.

Net current operating earnings of $4.3 billion were 4.9 percent 

greater than in 1964. As a proportion of total current operating 

revenue, however, they continued to decline, falling in 1965 to

25.8 percent. Net earnings represented a return of 1.16 percent on 

total assets, the lowest since 1955. Selected operating ratios of 

insured commercial banks in 1965 and other recent years are 

shown in Table 20.

Federal income tax liability declined in 1965 to its lowest level 

since 1959, reflecting among other factors the rising proportion 

of before-tax income received from tax-exempt securities, the 

reduction in tax rates enacted in 1964, and, effective in 1965, 

upward adjustments in loss reserves permitted under revised 

Treasury regulations. Additions to reserves for losses on loans were 

$159 million greater in 1965 than in 1964. There was an appreciable 

increase also in the number of banks reporting reserves for bad

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

debt losses on loans, pursuant to Internal Revenue Service rulings, 

as indicated in Table 21.

Net income after related taxes was a record $2.5 billion, 10.1 

percent greater than in 1964. This represented a return of 8.45 

percent on total capital accounts, about the same as in the preceding three years. The proportion of net income paid to stockholders,

47.8 percent, was barely changed from 1964.

Insured mutual savings banks. Total income of insured mutual 

savings banks amounted to $2.5 billion in 1965, 8.7 percent higher 

than in 1964. Income from loans, which comprises approximately 

four-fifths of the total income of insured mutual savings banks, rose 

12.4 percent during the year. The share of income from U. S. Government obligations declined slightly from 1964, while small increases occurred in income from other securities, and in other 

current income.

The proportion of loan income to total income increased from 

71 percent in 1961 to nearly 81 percent in 1965, as shown in Table 

22. Mortgage loans comprised 98 percent of loans held by insured 

mutual savings banks. Growth in volume of mortgage loans rather 

than higher average rates earned on them accounted primarily for 

the increase in loan income; the increase from 5.25 percent in 

1964 to 5.27 percent in 1965 in the average rate of return on 

mortgage loans was somewhat less than the rises of other recent 

years.

TABLE 22. SOURCES AND DISPOSITION OF TOTAL INCOME OF INSURED 

MUTUAL SAVINGS BANKS, 1961, 1964 AND 1965

Income

Amount (in millions) Percentage distribution

1965 1964 1961 1965 1964 1961

Total in co m e...................................................... $2,467 $2,270 $1,709 100.0% 100.0% 100.0%

Sources

Loans............................................................................ 1,993 1,772 1,213 80.8 78.1 71.0

U. S. Government obligations.................................. 148 153 152 6.0 6.8 8.9

Other securities.......................................................... 211 207 206 8.6 9.1 12.0

Other current income................................................. 55 50 42 2.2 2.2 2.5

Recoveries, etc............................................................ 60 87 96 2.4 3.8 5.6

Disposition

Salaries and wages.................................................... 177 168 142 7.2 7.4 8.3

Other current expenses............................................ 150 136 118 6.1 6.0 6.9

Dividends and interest on deposits......................... 1,809 1,654 1,148 73.3 72.9 67.2

Charge-offs, etc........................................................... 78 .75 98 3.2 3.3 5.7

Income taxes............................................................... 30 26 16 1.2 1.1 1.0

Additions to surplus accounts.................................. 223 211 187 9.0 9.3 10.9

Note: Due to rounding, components may not add to totals.

Mutual savings banks distribute most of their income in the form 

of dividends or interest. The proportion has been gradually rising, 

amounting to 73.3 percent in 1965 compared with 67.2 percent in 

1961. In responding to market conditions, the banks continued to

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INCOME OF INSURED BANKS 111

raise the rates paid on deposits. The average dividend on savings 

and time deposits increased from 3.57 percent in 1961 to 4.15 

percent in 1965. While this rate continued to be significantly higher 

than the average rate paid by insured commercial banks—3.44 percent in 1965— a narrowing of the gap in the last few years has 

sharpened the competition among various institutions for savingstype deposits.

Salaries and wages, and other current expenses of mutual savings banks, have also continued to rise, although not as rapidly as 

dividend payments. After expenses and taxes, $223 million remained for transfer to surplus in 1965, an amount 5.8 percent 

higher than in 1964.

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Federal Reserve Bank of St. Louis
STATISTICS OF BANKS 

AND DEPOSIT INSURANCE

PART FOUR

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NUMBER, OFFICES, AND DEPOSITS OF BANKS

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

States (States and other areas) during 1965 

Table 102. Number of banking offices in the United States (States and other areas), 

December 31, 1965

G ro u p e d a c c o rd in g to in s u ra n c e s ta tu s a n d cla s s o f b a n k, a n d b y S ta te

o r are a a n d type o f o ffic e

Table 103. Number and deposits of all banks in the United States (States and other 

areas), December 31, 1965

B a n ks g ro u p e d a c c o rd in g to in s u ra n c e sta tu s a n d b y d is tric t a n d S tate

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.

114 FEDERAL DEPOSIT INSURANCE CORPORATION

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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; a cooperative exchange in Arkansas; 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 general 

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;

The postal savings system.

NUMBER, OFFICES, AND DEPOSITS OF BANKS 115

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TABLE 101. CHANGES IN NUMBER AND CLASSIFICATION OF BANKS AND BRANCHES IN THE UNITED STATES

(STATES AND OTHER AREAS) DURING 1965

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

Number of offices, December 31, 19652............................ 30,958 30,306 652 29,736 29,393 13,801 4,738 10,854 278 65 1,222 913 309

Number of offices, December 31, 19642............................ 29,727 29,072 655 28,546 28,196 12,954 4,759 10,483 288 62 1,181 876 305

Net change during year.......................................................... +1,231 +1,234 - 3 +1,190 +1,197 +847 -21 +371 -1 0 +3 +41 +37 +4

Offices opened...................................................................... 1,454 1,420 34 1,407 1,385 751 225 409 19 3 47 35 12

Banks................................................. 202 184 18 199 182 88 4 90 14 3 3 2 1

Branches.................................................................... 1,252 1,236 16 1,208 1,203 663 221 319 5

11

44 33 11

Offices closed................................ 223 208 15 216 205 96 30 79 7 3 4

Banks....................................... 159 146 13 156 145 62 19 64 11 3 1 2

Branches................................. . . 64 62 2 60 60 34 11 15 4 2 2

Changes in classification 4-22 -2 2 i

! 17 +192 —216 —18 +1 +5 —4

Among banks.......................... +18 —18 +17 +16 —31 +32 —17 -1-1 —1

Among branches.................................. + 4 —4 — 1 +176 -1 8 5 + 9 _ 1 + 1 + 4 __3

BANKS

Number of banks, December 31, 1965........................... 14,324 13,876 448 13,818 13,547 4,815 1,405 7,327 221 50 506 329 177

Number of banks, December 3 1,1 96 4 14,281 13,820 461 13,775 13,493 4,773 1,451 7,269 235 47 506 327 179

Net change during year................................................... +43 +56 —13 +43 +54 +42 —46 +58 —14 _i_3 4-2 _2

Banks beginning operation............................................ 202 184 18 199 182 88 4 90 14 3 3

1 ^ 

2 1

New banks......................................... 201 184 17 198 182 88 4 90 13 3 3 2 1

Suspended bank reopened...................... 1 1 1 1

Banks ceasing operation................................. 159 146 13 156 145 62 19 64 11 3 1 2

Closed because of financial difficulties3.. 9 5 4 9 5 2 3 4

Absorptions, consolidations, and mergers (without

FDIC aid)......................................... 149 141 8 147 140 60 19 61 7 2 1 1

Other liquidations............................. 1 1 1 1

Noninsured banks becoming insured............... +17 —17 +16 +16 —16 -1-1 _ 1

Admission to insurance, operating banks. . +17 -1 7 + 16 +16 —16 + 1 1

116 FEDERAL DEPOSIT INSURANCE CORPORATION

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Other changes in classification...................

National banks succeeding State banks.

State banks succeeding national banks..

Admission to F. R. System........................

Withdrawal from F. R. System.................

Changes not involving number in any class:

Succession 4...................................................

Change in title................................................

Change in location.......................................

Change in title and location.........................

Change in name of location........................

Change in corporate powers:

Converted to commercial banks.............

Granted trust powers5................................

BRANCHES

Number of branches, December 31,1965 2

Number of branches, December 31, 1 96 4 2.

Net change during year.................................

Branches opened for business......................................

Facilities provided as agents of the governmentfi.

Absorbed banks converted to branches................

Branches replacing head offices relocated............

Other branches opened 7..........................................

Branches added to count8.......................................

Branches discontinued................

Facilities6...................................

Other branches7......................

Branches deleted from count8.

Other changes in classification (n e t)..........................

Branches changing class as result of conversion. . .

Branches of insured banks withdrawing from F. R.

System.....................................................................

Branch of noninsured bank admitted to insurance.

Branches transferred through absorption, consolidation or merger....................................................

Changes not involving number in any class:

Changes in operating powers of branches.............

Branches transferred through absorption, consolidation or merger....................................................

Changes in title, location, or name of location.......

1

141

12

3

4

4

43

16,634

15,446

+1,188

1,252

5

130

13

1,099

5

64

6

10

80

373

+1

+ 1

136

12

3

3

3

43

+4

+ 1 

+3

372

-1

-1

204

194

+10

16

-1

- 3

1

140

12

3

4

4

43

15,918

14,771

+1,147

1,208

5

128

13

1,057

5

368

+1

+1

135

12

3

3

3

43

15,846

14,703

+1,143

1,203

5

128

13

1,054

3

368

+16

+23

- 7

8,986

8,181

+805

3

72

5

583

34

6

23

5

+176

+ 171

+ 5

70

201

-31

-10

+1

-22

3,333

3,308

+25

221

26

194

1

-185

-1 6 6

-11

+16

-12

+7

-1

+22

67

5

3

3

3

43

3,527

3,214

+313

319

2

30

8

277

2

15

12

3

+9

- 5

+ 11

-1

-1

57

53

+4

5

15

15

716

675

+41

44

......

" '4 2 '

2

2

+1

+3 -1 +1

584

549

+35

33

......

"31

+4

, + r

+3

132

126

+6

11

-1

-2

1 Includes one trust company member of the Federal Reserve System.

2 Includes a few seasonal offices which were not in operation December 31.

3 Includes one noninsured bank which suspended, and subsequently entered voluntary liquidation.

4 Noninsured private (unincorporated) bank succeeded by noninsured State bank.

5 Information available only for insured banks not members of Federal Reserve System.

6 Facilities established in or near military or other Federal Government installations at request of the Treasury Department or the commanding officer of the installation.

7 Excludes opening and closing of seasonal offices (except those newly established or permanently discontinued in 1965).

8 Changes occurred prior to 1965, but were not recognized in count as of December 31,1964.

NUMBER, OFFICES, AND DEPOSITS OF BANKS 117

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Federal Reserve Bank of St. Louis
TABLE 102. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1965

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

State and ty p e o f bank o r o ffice

All banks C om m ercial banks and n o n d e p o sit tru s t com panies M u tu a l savings banks P ercentage in s u re d 1

T otal

In ­

sured

N o nin su re d Total

Insured N o ninsu red

T otal

In ­

sured

N o nin su re d

All

banks

o f

d e ­

posit

C om ­

m ercial

banks

o f

de p o sit

M utual

savings

T otal banks

M em be

Sysl

National

rs F. R.

tern

S tate

N ot 

m e m ­

bers 

F. R. 

Syste m

B anks

o f

d e ­

p o s it2

N ond e p o sit

tru s t

c o m ­

p a n ie s 3

United States—all offices....... 30,958 30,306 652 29,736 29,393 13,801 4,738 10,854 278 65 1,222 913 309 98.1 99.1 74.7

B a n k s ............................................ 14,324 13,876 448 13,818 13,547 4,815 1,405 7,327 221 50 506 329 177 97.2 98.4 65.0

Unit banks.................................... 10,860 10,507 353 10,601 10,355 3,426 953 5,976 201 45 259 152 107 97.1 98.1 58.7

Banks operating branches............. s , m 3,369 95 3,207 3,192 1,389 452 1,351 20 5 247 177 70 97.4 99.4 71.7

B ra n c h e s ..................................... 16,634 16,430 204 15,918 15,846 8,986 3,333 3,527 57 15 716 584 132 98.9 99.6 81.6

50 States and D. C.—all offices 30,776 30,148 628 29,556 29,237 13,776 4,738 10,723 254 65 1,220 911 309 98.2 99.1 74.7

B a n k s ............................................ 14,308 13,867 441 13,803 13,539 4,814 1,405 7,320 W 50 505 328 w 97.3 98.4 65.0

Unit banks.................................... 10,855 10,506 349 10,596 10,354 3,426 953 5,975 197 I s 259 152 107 97.2 98.1 58.7

Banks operating branches............. 3,453 3,361 92 3,207 3,185 1,388 452 1,345 17 5 246 176 70 97.5 99.5 71.5

B ra n c h e s ..................................... 16,468 16,281 187 15,753 15,698 8,962 3,333 3,403 40 15 715 583 132 99.0 99.7 81.5

Other areas— all offices 182 158 24 180 156 25 131 24 2 2 86.8 86.7 100.0

Banks 16 9 7 15 8 1 7 7 1 1 56.3 53.3 100.0

Unit banks 5 i 1 1 4 16.6 16.6

Banks operating branches 11 8 3 10 7 1 6 3 1 1 80.0 77.8 100.0

Branch es 166 149 17 165 148 24 124 17 1 1 89.8 89.7 100.0

State

Alabama— all offices 426 426 426 426 214 33 179 100.0 100.0

Banks 263 263 263 263 86 24 153 100.0 100.0

Unit banks 216 216 216 216 57 19 140 100.0 100.0

Banks operating branches 1ft 47 47 47 29 5 13 100.0 100.0

Branches 163 163 163 163 128 9 26 100.0 100.0

Alaska— all offices 67 65 2 65 63 50 13 2 2 2 97.0 96.9 100.0

B anks 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 2 2 66.7 50.0 100.0

Banks operating branches 8 8 8 8 5 3 100.0 100.0

B ranch es 53 53 53 53 45 8 100.0 100.0

Arizona—all offices 276 267 9 276 267 183 18 66 9 100.0 100.0

Banks 18 17 1 18 17 4 1 12 1 100.0 100.0

Unit banks 8 8 8 8 1 7 100.0 100.0

Banks operating branches 10 9 1 10 9 3 1 5 1 100.0 100.0

B ranches 258 250 8 258 250 179 17 54 8 100.0 100.0

118 FEDERAL DEPOSIT INSURANCE CORPORATION

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Arkansas—all offices...

Banks..........................

Unit banks.......................

Banks operating branches.

Branches.....................

California—all offices...

Banks..........................

Unit banks.......................

Banks operating branches.

Branches.....................

Colorado—all offices__

Banks..........................

Unit banks.......................

Banks operating branches.

Branches.....................

Connecticut—all offices

Banks..........................

Unit banks.......................

Banks operating branches.

Branches.....................

Delaware—all offices

Banks...........................

Unit banks.......................

Banks operating branches.

Branches.....................

D. C.—all offices............

Banks...........................

Unit banks.......................

Banks operating branches.

Branches.....................

Florida—all offices........

Banks...........................

Unit banks.......................

Banks operating branches.

Branches.....................

Georgia—all offices.......

Banks...........................

Unit banks.......................

Banks operating branches.

Branches.....................

Hawaii—all offices.........

Banks...........................

Unit banks.......................

Banks operating branches.

Branches.....................

354

246

183

63

108

2,623

199

95

104

2,424

250

2437

555

139

60

79

416

95

22

11

11

73

103

151

14

461

443

426

17

18

625

429

360

69

196

128

1248

116

350

242

179

63

108

2,612

193

91

102

2,419

218

210

551

135

56

79

416

95

22

11

11

73

103

151

14

458

440

423

17

18

583

387

318

69

196

12277

115

116425

40

40

40

42

42

354

246

183

63

108

2,623

199

95

104

2,424

258

250

2437

381

68

27

41

313

85

20

119

65

103

151

14

461

443

426

17

18

625

429

360

69

196

128

1248

116

350

242

179

63

108

2,612

193 

91

102

2,419

218

210

377

64

23

41

313

85

20

119

65

103

151

14

458

440

423

17

18

583

387

318

69

196

12277

115

192

158

131

27

34

280

83

35

48

197

78

76

74

243

237

23166

357

316

279

37

41

7855

73

333

111

116425

40

40

40333

111

174

71

33

38

103

102

174

71

33

38

103

102

28

28

222

111

42

42

42

65411

99.2 99.2

98.8 98.8

98.4 98.4

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

84.5 84.5

84.0 84.0

83.5 83.5

100.0 100.0

100.0 100.0

99.5 99.2 100.0

97.8 95.5 100.0

94.9 88.5 100.0

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

100.0 100.0 100.0

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

100.0 100.0 100.0

99.6 99.6

99.5 99.5

99.5 99.5

100.0 100.0

100.0 100.0

93.3 93.3

90.2 90.2

88.3 88.3

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, OFFICES, AND DEPOSITS OF BANKS 119

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
TABLE 102. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1965— CONTINUED

G RO UPED AC C O R D IN G TO INSU RANCE STATUS AND CLASS OF BANK, AN D BY STATE OR AR EA AN D TYPE OF O FFICE

All banks C om m ercial banks and n o n d e p o sit tru s t com panies M utu al savings ban ks Percentage in s u re d 1

Insured N o ninsu red

S tate and ty p e o f ban k or o ffice

Total

In ­

sured

N o nin su re d Total

Total

M em bers F. R. 

System

N o t

m e m ­

bers

Banks

of

N ond e p o sit

tru s t

co m ­

p a n ie s 3

Total

In ­

sured

N onin sure d

All

banks

of

d e ­

C om ­

m ercial

banks

of

M utual

savings

banks

Nationa l State

F. R. 

System

de ­

p o s it2

posit d e p o sit

Idaho—all offices..................... 152 152 152 152 104 30 18 100.0 100.0

B a n k s ............................................ 25 25 25 25 9 7 9 100.0 100.0

Unit banks.................................... 12 12 12 12 3 4 5 100.0 100.0

Banks operating branches............. 13 13 13 13 6 3 4 100 0 100 0

B ra n c h e s ...................................... 127 127 127 111 95 23 9 100.0 100.0

Illinois—all offices................... 1,056 1,049 7 1,056 1,049 422 112 515 3 4 99.7 99.7

B a n k s ............................................ 1,051 1,044 7 1,051 1,044 417 112 515 3 4 99.7 99.7

Unit banks.................................... 1,0^7 1,040 7 1,047

4

1,040

4

413 112 515 3 4 99.7 99.7

Banks operating branches............. 4 4 4 100 0 100.0

B ra n c h e s ...................................... 5 5 5

5

5 100.0 100.0

Indiana—all offices................. 897 893 4 893 889 379 146 364 3 1 4 4 99.7 99.7

99.3

98.8

100.0

100.0

100.0

B a n k s ............................................ 426 422 4 422 418 122 88 208 3 1 4 4 99.3

98.8

100 0

Unit banks.................................... 258 254 4 254

168

250 59 60 131 3 1 4 4

Banks operating branches............. 168 168 168 63 28 77 100 0

B ra n c h e s ...................................... 471 471 471 471 257 58 156 100.0

98.6

100.0

Iowa*—all offices...................... 908 894 14 908 894 129 79 686 13 1 98.6

B a n k s ............................................ 673 659 14 673 659 101 62 496 13 1 98.1

97.3

98.1

Unit banks 97.3 .................................... 489 475 14 489 475 75 47

15

353 13 1

Banks operating branches............. 184 184 184 184 26 143

190

100 0 100 0

B ra n c h e s ..................................... 235 235 235 235 28 17 100.0

99.5

100.0

Kansas—all offices.................. 648 645 3 648 645 195 48 402 3 99.5

B a n k s ............................................. 599 596 3 599 596 170 41 385 3 99.5

99.5

99.5

Unit banks.................................... 552 549 3 552 549 147 34 99.5

7

368 3

Banks operating branches............. 47 47 47 47 23 17 100.0 100 0

B ra n c h e s ...................................... 49 49 49 49 25 7 17 100.0 100.0

Kentucky—all offices.............. 578 572 6 578 572 198 52 322 6 99.0 99.0

B a n k s ............................................. 346 340 6 346 340 81 14 245 6 98.3

97.5

98.3

Unit banks 97.5 .................................... 244 238 6 244 238 40 6 192 6

Banks operating branches............. 102 102 102 102 41

117

8 53 100 0 100 0

B ra n c h e s ...................................... 232 232 232 232 38 77 100.0 100.0

120 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Louisiana—all offices............... 462 461 1 462 461 178

B anks........................................ 214 213 1 214 213 47

Unit banks.................................... 130 129 1 130 129 17

Banks operating branches.............

Branches..................................

84

248

84

248

84

248

84

248

30

131

Maine—all offices...................... 264 244 20 219 205 93

B anks........................................ 76 65 11 44 39 21

Unit banks.................................... 36 28 8 11 9 6

Banks operating branches............. 40 37 3 33 30 15

Branches.................................. 188 179 9 175 166 72

Maryland—all offices............... 558 551 7 516 509 242

B anks........................................ 128 127 1 122 121 50

Unit banks.................................... 62 62 61 61 22

Banks operating branches............. 66 65 1 61 60 28

B ranches.................................. 430 424 6 394 388 192

Massachusetts—all offices__ 1,066 755 311 729 721 415

Banks........................................ 340 164 176 161 156 93

Unit banks.................................... 148 44 104 45 42 27

Banks operating branches............. 192 120 72 116 114 66

Branches4................................ 726 591 135 568 J565 322

Michigan—all offices................ 1,247 1,243 4 1,247 1,243 495

B anks......................................... 354 352 2 354 352 97

Unit banks.................................... 176 175 1 176 175 41

Banks operating branches............. 178 177 1 178 177 56

B ranches.................................. 893 891 2 893 891 398

Minnesota—all offices.............. 733 728 5 732 727 199

B anks........................................ 723 718 5 722 717 193

Unit banks.................................... 717 712 5 716 711 191

Banks operating branches............. 6 6 6 6 2

B ranches .................................. 10 10 10 J ! L

417

- 6

105

37

10

27

68

Mississippi—all offices............ 417 417 417

B anks........................................ 196 196 196 196

Unit banks.................................... 98 98 98 98

Banks operating branches............. 98 98 98 98

B ranches.................................. 221 221 221 221

Missouri—all offices................. 718 707 11 718 707 116

B anks......................................... 655 644 11 655 644 96

Unit banks.................................... 592 581 11 592 581 76

Banks operating branches............. 63 63 63 63 20

B ranches.................................. 63 63 63 63 20

Montana—all offices................. 134 132 2 134 132 52

B anks........................................ 131 129 2 131 129 50

Unit banks.................................... 128 126 2 128 126 48

Banks operating branches............. 3 3 3 3 2

B ranches.................................. 3 3 3 3 2

7

1

6

53

153

17

17

136

120

59

61

339

28

28

247 1

156 1

109 1

47

91

54 14 45 39 6

12 5 32 26 6

1 2 25 19 6

11 3 7 7

42 9 13 13

207 7 42 42

64 1 6 6

38 1 1

26 1 5 5

143 6 36 36

153 6 2 337 34 303

46 4 1 179 8 171

15 3 103 2 101

31 1 1 76 6 70

107 2 1 158 26 132

289 3 1

135 1 1

75 1

60 1

154 2

500 5 1 1

496 5 1 1

492 5 1 1

4

4

294

153

87

66

141

495 8 3

467 8 3

439 8 3

28

28

37 1 1

37 1 1

37 1 1

99.8

99.5

99.2

100.0

100.0

92.4

85.5

77.8

92.5

95.2

98.7

99.2 

100.0

98.5

98.6

71.0

48.4

29.7

62.8

81.5

99.7

100.0

99.4

99. f

99.3

99.3

99.3

100.0

100.0

100.0

100.0

100.0

100.0

100.0

98.9

98.9 

98.6

100.0

100.0

99.2

99.2

99.2

100.0

100.0

99.8

99.5

99.2

100.0

100.0

88.6

81.8

90.1

94.9

98.6

99.2 

100.0

98.4

98.5

99.2

97.5

64.3

58.4

99.6

99.8

99.7

100.0

99.4

99. f

99.3

99.3

99.3

100.0

100.0

100.0

100.0

100.0

100.0

100.0

98.1

98.1

100.0

100.0

99.2

99.2

99.2

100.0

100.0

86.7

81.3

76.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

10.1

4.5

1.9

7.9

16.5

100.0

100.0

100.0

NUMBER, OFFICES, AND DEPOSITS OF BANKS

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
TABLE 102. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1965— CONTINUED

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

State and type of bank or office

Nebraska— all offices........

Banks.............................

Unit banks..............................

Banks operating branches.......

Branches........................

Nevada— all offices...........

Banks.............................

Unit banks..............................

Banks operating branches.......

Branches........................

New Hampshire— all offices

Banks.............................

Unit banks..............................

Banks operating branches.......

Branches........................

New Jersey— all offices.......

Banks.............................

Unit banks..............................

Banks operating branches.......

Branches........................

New Mexico— all offices....

Banks.............................

Unit banks..............................

Banks operating branches.......

Branches.........................

New York— all offices........

Banks.............................

Unit banks..............................

Banks operating branches.......

Branches4.......................

All banks

Total

464

436

410

72

9

3

6

63

142

106

76

SO

36

957

254

86

168

703

159

64

25

39

95

2,633

470

219

251

2,163

Insured

458

430

m26

28

72

9

3

139

103

73

30

36

954

251

83

168

703

159

64

95

442

196

2^6

2,157

Noninsured

Commercial banks and nondeposit trust companies

Total

464

436

410

72

9

3

6

63

101

74

52

906

233

76

157

673

159

64

95

2,276

344

174

170

1,932

Total

458

430

404

27

903

230

73

157

673

*“*159

64

25

39

95

2,242

316

151

165

1,926

Insured

Members F. R.

System

National

144

126

109

17

18

37

3

1

74

51

32

19

23

572

147

47

100

425

87

34

15

19

53

1,160

198

105

93

962

State

47

13

34

175

14

8

4

4

6

943

83

Not

members

F. R.

System

300

291

23

19

16

3

4

109

36

13

35

17

18

104

Noninsured

Banks

of

deposit2

Nondeposit

trust

companies3

Mutual savings banks Percentage insured

Total

357

126

81

231

Insured

357

126

45

81

231

Noninsured

All

banks

of

deposit

99.8

99.8

99.8

100.0

100.0

100.0

100.0

100.0

100.0

100.0

97.9

97.2

96.1

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

95.1

91.6

98.0

99.7

Commercial

banks

of

deposit

100.0

100.0

100.0

100.0

100.0

100.0

100.0

97.0

95.9

94.2

1 00.0

100.0

100.0

100.0 100.0 100.0

100.0

100.0

100.0

100.0

100.0

100.0

98.7

93.2

89.3

97.1

99.7

Mutual

savings

banks

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

100.0

100.0

122 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
North Carolina—all offices__ 883 878 5 883 878 292

B a n k s ............................................ 146 145

1 146 145 30

64 64 64 64

9

Banks operating branches............. 82 81

1 82 81 21

B ra n c h e s ...................................... 737 733 4 737 733 262

North Dakota—all offices........ 218 212 6 218 "111 49

B a n k s ............................................ 169 163

6 169 163 42

Unit banks.................................... 134 128 6 134 128 36

Banks operating branches............. 35 35 35 35 6

49 49 49 49

7

Ohio—all offices......................... 1,491 1,490 1 1,490 1,489 741

B a n k s ............................................ 543 542

1 542 541 224

Unit banks.................................... 307 306

1 306 305 99

236 236 236 236 125

Branches ......................... 948 948 948 948 517

Oklahoma—all offices.............. 459 458

1 459 458 253

B a n k s ............................................ 421 420

1 421 420 111

Unit banks.................................... 385 384

1 385 384 193

36 36 36 36 29

38 38 38 38 31

Oregon—all offices.................... 317 314 3 316 313 222

B a n k s ............................................ 52 49 3 51 48 12

Unit banks.................................... 27 24 3 26 23

7

Banks operating branches 25 25 25 25 5

B ra n c h e s4 ........................... 265 265 265 265 210

Pennsylvania—all offices 1,880 1,867 13 1,809 1,796 1,164

B a n k s ............................................ 578 568 10 571 561 373

Unit banks.................................... 344 336 8 343 335 224

Banks operating branches............. 234 232 2 228 226 149

B ra n c h e s4................................... 1,302 1,299

3 1,238 1,235 791

Rhode Island—all offices 184 175 9 136 127 58

B a n k s ............................................ 18 16 2 11

9

4

Unit banks....................................

Banks operating branches............. 18 16 2 11 9

4

B ra n c h e s ...................................... 166 1597 125 * 118 54

South Carolina—all offices__ 399 395 4 399 395 205

B a n k s ............................................ 129 125 4 129 125 25

Unit banks.................................... 68 64

4 68 64

5

Banks operating branches............. 61 61 61 61 20

B ra n c h e s ...................................... 270 270 270 270 180 irtwfri

South Dakota—all offices 246 245 1 246 245 70

B a n k s ............................................ 170 169

1 170 169 33

Unit banks.................................... 137 136 1 137 136 27

Banks operating branches............. 33 33 33 33

6

B ra n c h e s ...................................... 76 76 76 76 37

1024/3

427

128

79

49

299

26

24

15321

12

238

44

23

21

194

261I

25953

31

25

484

111

54

57

373

156

117

90

27

39

321

189

127

62

132

179

174

169

76

33n

19

43

394

144

88

56

250

434

" 7

39

181

95

56

144

111

87

5114555

111

111111111

111

222

111111111

10752392

33371716

64

487

71716

64

487

21444

7

41

7

41

111

99.4 99.4

99.3 99.3

100.0 100.0

98.8 98.8

99.5 99.5

97.7 97.7

97.0 97.0

96.2 96.2

100.0 100.0

100.0 100.0

99.9 99.9 100.0

99.8 99.8 100.0

99.7 99.7 100.0

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

99.4 99.4 100.0

96.1 96.0 100.0

92.3 92.0 100.0

100.0 100.0

100.0 100.0

99.5 99.4 100.0

98.8 98.8 100.0

98.5 98.5 100.0

99.1 99.1 100.0

99.8 99.8 100.0

95.1 93.4 100.0

88.9 81.8 100.0

88.9 81.8 100.0

95.8 94.4 100.0

99.0 99.0

96.9 96.9

9 4 .I 94.1

100.0 100.0

100.0 100.0

99.6 99.6

99.4 99.4

99.3 99.3

100.0 100.0

100.0 100.0

NUMBER, OFFICES, AND DEPOSITS OF BANKS 123

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
TABLE 102. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1965— CONTINUED

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

All banks Commercial banks and nondeposit trust companies Mutual savings banks

Insured Noninsured

State and type of bank or office

Total

Insured

Noninsured Total

Total

Members F. R.

System

Not

membersBanks

of

Nondeposit

trust

companies3

Total

InsuredNoninsured

National State

F. R.

System

deposit2

Tennessee—all offices............. 627 622 5 627 622 281 33 308 4 1

Banks..................................... 298 294 4 298 294 76 9 209 3 1

Unit banks.................................... 192 189 3 192 189 25 4 160 2 1

Banks operating branches............. 106 105 1 106 105 51 5 49 1

Branches............................... 329 328 1 329 328 205 24 99 1

Texas—all offices....................... 1,194 1,182 12 1,194

1,142

1,089

1,182

1,130

1,077

53

565 76 541 12

Banks..................................... 1,142 1,130 12 545 72 513 12

Unit banks.................................... 1,089 1,077 12 524 68 485 12

Banks operating branches............. 53 53 53 21 4 28

Branches............................... 52 52 52 52 20 4 28

Utah—all offices........................ 165 165 165 165 71 43 51

Banks..................................... 56 56 56 56 13 13 30

Unit banks.................................... 36 36 36 36 9 6 21

Banks operating branches............. 20 20 20 20 4 7 9

Branches............................... 109 109 109 109 58 30 21

Vermont—all offices................. 113 112 1 105 104 58 46 1 8 8

Banks..................................... 54 53 1 48 47 27 20 1 6 6

Unit banks.................................... 31 30 1 27 26 15 11 1 4

2

4

Banks operating branches............. 23 23 21 21 12 9 2

Branches............................... 59 59 57 57 31 26 2 2

Virginia—all offices................... 820 820 820 820 454 152 214

Banks..................................... 262 262 262 262 118 57 87

Unit banks.................................... 129 129 129 129 50 35 44

43

127

Banks operating branches............. 133 133 133 133 68 22

Branches............................... 558 558 558 558 336 95

Washington—all offices........... 533 532 1 509 508 378 37 93 1 24 24

Banks..................................... 104 103 1 100 99 31 10 58 1 4 4

Unit banks.................................... 59 58 1 58 57 15 5 37 1 1 1

Banks operating branches............. 45 45 42 42 16 5 21 3 3

Branches4.............................. 429 429 409 JBSL 347 27 35 20 20

1

Percentage insured1

All

banks

of

deposit

Commercial

banks

of

deposit

Mutual

savings

banks

99.4

99.0

99.0

99.1

99.7

98.9

98.9

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

99.8

99.0

98.3

100.0

100.0

99.4

99.0

99.0

99.1

99.7

99.0

98.9

98.9

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

99.8

99.0

98.3

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

124 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
West Virginia—all offices

Banks..............................

Unit banks............................

Banks operating branches

Branches........................

187

187

187

186

186

186

187

187

187

186

186

186

99.5

99.5

99.5

99.5

99.5

99.5

Wisconsin—all offices..

Banks..........................

Unit banks.......................

Banks operating branches

Branches.....................

Wyoming—all offices...

Banks...........................

Unit banks.......................

Banks operating branches.

Branches.....................

Other a rea

Pacific Islands—all offices5

Banks................................

Unit banks6............................

Banks operating branches.......

Branches7........................

Panama Canal Z o n e -

all offices......................

Banks...........................

Unit banks.......................

Banks operating branches.

Branches8...................

754

584

477

107

170

70

69

68

1

1

751

581

474

107

170

70

69

68

1

1

751

581

474

107

170

70

69

68

1

1

748

578

471

107

170

70

69

68

1

1

134

110

97

13

24

40

39

38

1

1

549

416

329

87

133

16

16

16

99.9

99.8

99.8

100.0

100.0

100.0

100.0

100.0

100.0

100.0

30.8

33.3

99.9

99.8

99.8

100.0

100.0

100.0

100.0

100.0

100.0

100.0

30.8

33.3

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......................

155

11

3

8

144

12

4

/

3

155

11

3

8

144

10

3

1

2

7

145

7

1

6

138

7

1

130

7

1

6

123

93.5

63.6

33.3

75.0

95.8

75.0

50.0

100.0

87.5

93.5

63.6

33.3

75.0

95.8

70.0

33.3

100.0

85.7

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, operatingone branch.

4 Includes the following branches of banks located in other States or in Puerto Rico: 1 noninsured branch in Massachusetts and 1 in Pennsylvania of a noninsured bank in New York; 6 insured branches in New 

York of 2 insured banks in Puerto Rico not members of the F. R. System; 1 insured branch in Pennsylvania of a national bank in New Jersey; 1 insured branch in Oregon and 2 in Washington of 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 Consists of the following branches of a national bank in California: 1 noninsured in Caroline Islands, Truk Atoll (Moen Island) and 4 in the Mariana Islands (3 insured on Guam and 1 noninsured on Saipan); 

also 7 branches of an insured bank in Hawaii, not a member of the F. R. System, consisting of 1 insured branch on Guam and 6 noninsured branches; 2 in Caroline Islands, Palau Islands (Koror) and Ponape Island 

(Kolonia); 2 in Marshall Islands, Kwajalein Atoll; 1 in Midway Islands, Sand Island; and 1 on Wake Island.

8 Two noninsured branches of two national banks in New York.

9 Includes 15 insured branches of two national banks in New York.

10 Includes 4 insured branches of a national bank in New York.

Back figures: See the Annual Report for 1964, pp. 160-167, and earlier reports.

NUMBER, OFFICES, AND DEPOSITS OF BANKS 125

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Federal Reserve Bank of St. Louis
Table 103. NUMBER AND DEPOSITS OF ALL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1965

BANKS GROUPED ACCORDING TO INSURANCE STATUS AND BY DISTRICT AND STATE

N u m b e r of banks D eposits (in th o u s a n d s o f d ollars)

C o m m e rcia l banks and 

n o n d e p o s it tru s t com panies M utu al savings banks C o m m e rcia l b a n k s and 

n o n d e p o sit tru s t co m p a n ie s M utu al savings banks

FDIC D is tric t and State All 

b an ks 1

N o n in s u re d 1 All

banks

T otal

In ­

su re d B anks 

o f d e ­

p o sit

N ond ep osit

tru s t

c o m ­

panies

Total In ­

sured

N o nin ­

sured

Total In su re d N onin su re d 2

Total In su re d N oninsured

14,324

14,308

13,818

13,803

13,547 221 50 506 329 177 386,540,654 333,779,458 331,512,681 2,266,777 52,761,196 45,887,291 6,873,905

50 States and D. C............... 13,539 214 50 505 328

1

177 385,165,892 332,405,396 330,292,482 2,112,914 52,760,496 45,886,591 6,873,905

16 15 8 7 1 1,374,762 1,374,062 1,220,199 153,863 700 700

FDIC District

D is tric t 1 .................................... 733 406 386 17 3 327 150 177 28,534,724 13,882,684 13,672,865 209,819 14,652,040 7,778,135 6,873,905

D is tric t 2 3 761 611 574 29 8 150 150 110,330,967 77,439,375 76,119,646 1,319,729 32,891,592 32,891,592

D is tric t 3 1,121

867

1,113

861

1,102 8 3 8 8 38,878,807 35,674,272 35,641,232 33,040 3,204,535 3,204,535

D is tric t 4 854 7 6 6 19,449,095 18,726,162 18,510,086 216,076 722,933 722,933

D is tric t 5 1,331

1,545

1,364

1,724

1|193

1,775

1,438

472

1,331

1,545

1,357

1.724

1,192

1,775

1,438

465

1,286 

1,520 

1,348 

1 703

44 1 17,619,242

18,973,907

17,619,242

18,973,907

17,579,627

18,935,003

27,400,466

29,933,889

9,168,369

39,615

D is tric t 6 20 5 38,904

D is tric t 7 5 4 7 7 27,535,992 

30,011,783 

9,754,885

27,430,037

30,011,783

9,286,429

29,571 105,955 105,955

D is tric t 8 16 5 77,894

D is tric t 9 U 7 8 118,060

1,725

1,424

447

12 2 1 1 468,456 468,456

D is tric t 10 44 6 12,899,862

25,266,910

47,284,480

12,899,862

25,266,910

46,568,795

3,235,941

338,449

12,868,993

25,223,098

46,459,407

30,869

43,812

109,388

D is tric t 11 13 1

D is tric t 1 2 4 6 12 7 7 715,685 715,685

State

A labam a 263 263 263 3,235,941

355,533

3,235,941

Alaska 14 12 10 2 2 2 332,631 5,818 17,084 17,084

A rizo na 18 18 17 1 2,105,124

2,046,227

35,341,253

2,897,785

7,100,440

2,105,124

2,046,227

35,341,253

2,897,785

3,392,507

971,143

2,280,630

7,710,154

4,612,943

1,006,557

896,840

25,509,730

6,923,808

2,096,061

2,042,865

35,341,253

2,870,104

3,376,856

9,063

A rka n sa s 246 246 242 3 1 3,362

C a lifornia 199 199 193 6

C olorado 250 250 210 40 27,681

C o n n e cticu t 139 68 64 3 1 71 71 15,651 3,707,933 3,707,933

D elaw are 22 20 20 2 2 1,206,776

2,280,630

7,710,154

4,612,943

1,006,557

896,840

25,509,730

6,998,739

971,143 235,633 235,633

D is tric t o f C o lum bia 15 15 15 2,280,630

7,686,166

4,597,316

987,634

896,840

25,456,055

6,921,163

Florida 443 443 440 2 1 23,988

15,627

18,923

G eorgia 429 429 387 42

Hawaii 12 12 7 5

Idaho 25

1,051

426

25 25

Illin o is 1,051

422

1,044

418

3 4 53,675

India na 3 1 4 4 2,645 74,931 74,931

126 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Iowa.........

Kansas...

Kentucky.

Louisiana.

Maine......

Maryland..........

Massachusetts.

Michigan...........

Minnesota.........

Mississippi........

Missouri..............

Montana..............

Nebraska............

Nevada...............

New Hampshire.

New Jersey....

New Mexico__

New York5.......

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 Islands8..........

Panama Canal Zone7.

Puerto Rico8...............

Virgin Islands9............

673

599

346

214

76

128

340

354

723

196

655

131

436

9

106

254

64

470

146

169

543

421

52

578

18

129

170 

298

1,142

56

54

262

104

187

584

69

673

599

346

214

44

122

161

354

722

196

655

131

436

9

74

233

64

344

146

169

542

421

51

571

11

129

170 

298

1,142

56

48

262

100

187

581

69

659

596

340

213

39

121

156

352

717

196

644

129

430

9

71

230

64

316

145

163

541

420

48

561

9

125

169

294

1,130

56

47

262

99

186

578

69

6

179

126 126

171

4,502,053

3,367,855

3,450,162

4,340,426

1,466,086

4,348,524

15,703,124

14,127,902

6,518,502

2.060.204

8.416.347

1.118.348 

2,280,603

697,963

1,432,683

12,049,814

945,214

95,779,095

4,483,903

1,059,065

15,723,810

3.799.204 

3,031,549

23,154,997

2,066,837

1,468,979

1,058,970

5,061,171

17,876,146

1,418,439

765,554

5,062,996

4,456,866

1,804,063

6,409,351

554,415

50,049

29,431

1,214,269

81,013

4,502,053

3,367,855

3,450,162

4,340,426

846,426

3,625,591

7,229,385

14,127,902

6,050,046

2.060.204

8.416.347

1.118.348 

2,280,603

697,963

586,438

10,002,492

945,214

65,171,158

4,483,903

1,059,065

15,721,496

3.799.204 

2,964,541

19,952,776

1,258,110

1,468,979

1,058,970

5,061,171

17,876,146

1,418,439

569,818

5,062,996

3,825,273

1,804,063

6,378,327

554,415

50,049

29,431

1,214,269

80,313

4,477,834

3,365,409

3,440,141

4,339,568

817,345

3,468,794

7,121,419

14,102,094

6.044.961 

2,060,204

8,401,548

1,117,704

2,280,228

697,963

573,949

10,001,055

945,214

63,965,332

4,438,708

947,461

15,719,482

3,798,837

2,953,602

19,921,750

1,213,478

1,465,345

1,058,243

5,050,449

17,842,255

1,418,439

569,818

5,062,996

3.792.962 

1,793,613 

6,377,209

554,415

38,083

1,107,554

74,562

24,219

2,446

10,021

858

29,081

156,797

107,966

25,808

5,085

619,660

722,933

8,473,739

566,405

722,933

1,653,089

53,255

6,820,650

468,456 468,456

14,799

644

375

12,489

1,437

846,245

2,047,322

846,245

2,047,322

1,205,826

45,195

111,604

2,014

367

10,939

31,026

44,632

3,634

727

10,722

33,891

30,607,937 30,607,937

2,314 2,314

67,008

3,202,221

808,727

67,008

3,202,221

808,727

195,736 195,736

32,311

10,450

1,118

• 631,593 631,593

31,024 31,024

11,966

29,431

106,715

5,751 700 700

1 Includes 7 noninsured banks (1 in Illinois, 2 in Iowa, 1 in Nebraska, 1 in North Dakota, and 2 in Texas) for which data are not available.

2 Includes figures for 16 branches of foreign banks (tabulated as banks) licensed to do a deposit business in the State of New York.

3 Includes Puerto Rico and the Virgin Islands.

4 Includes Alaska, Hawaii, Pacific Islands, and the Panama Canal Zone.

5 Includes deposit data for 6 insured branches operated by 2 insured banks in Puerto Rico. See also footnote 2.

6 In United States possessions (American Samoa, Guam, Midway Islands, and Wake Island) and Trust Territories (Kwajalein, Palau Islands, Ponape Island, Saipan, and Truk Atoll). Consists of deposit data for 1 

noninsured bank in American Samoa and 5 branches of an insured bank in California, 1 noninsured in Caroline Islands, Truk Atoll (Moen Island) and 4 in the Mariana Islands (3 insured on Guam and 1 noninsured on 

Saipan). Also, 7 branches of an insured bank in Hawaii, consisting of 1 insured branch on Guam and 6 noninsured branches: 2 in Caroline Islands, Palau Islands (Koror) and Ponape Island (Kolonia); 2 in Marshall 

Islands, Kwajalein Atoll; 1 in Midway Islands, Sand Island; and 1 on Wake Island.

7 Consists of deposit data for 2 noninsured branches operated by 2 insured banks in New York.

8 Includes deposit data for 15 insured branches operated by 2 insured banks in New York.

9 Includes deposit data for 4 insured branches operated by an insured bank in New York.

Note: Data for the branches described in footnotes 6,7, 8, and 9 are not included in the figures for the States in which the parent banks are located.

Back figures: See the Annual Report for 1964, pp. 168-169, and earlier reports.

NUMBER, OFFICES, AND DEPOSITS OF BANKS 127

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ASSETS AND LIABILITIES OF BANKS

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

areas), June 30,1965

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, 1965 

Banks grouped according to insurance status and type of bank

Table 106. Assets and liabilities of all banks in the United States (States and other 

areas), December 31, 1965

Banks grouped by district and State

Table 107. Assets and liabilities of all insured banks in the United States (States and 

other areas), June and December call dates, 1962 through 1965 

Table 108. Assets and liabilities of insured commercial and insured mutual savings 

banks in the United States (States and other areas), December and June 

call dates, 1963 through 1965 

Table 109. Average assets and liabilities and assets and liabilities per $100 of total 

assets of insured commercial banks in the United States (States and other 

areas), 1965 

By class of bank

Table 110. Assets and liabilities and assets and liabilities per $100 of total assets of 

insured commercial banks operating throughout 1965 in the United States 

(States and other areas), December 31, 1965 

Banks grouped according to amount of deposits

Table 111. Average assets and liabilities of insured commercial banks in the United 

States (States and other areas), by State, 1965 

Table 112. Distribution of insured commercial banks in the United States (States and 

other areas), December 31, 1965 

Banks grouped according to amount of deposits and by ratios of selected

items to assets

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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, 1965, and December 31, 1965, are shown in the Corporation’s 

semiannual publication, “ Assets, Liabilities, and Capital Accounts, 

Commercial and Mutual Savings Banks,” Report of Call No. 72, and 

Report of Call No. 74. Data from Call No. 71, April 26, 1965, and 

Call No. 73, October 13, 1965, 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 129

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Federal Reserve Bank of St. Louis
Table 104. ASSETS AND LIABILITIES OF ALL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), JUNE 30, 1965

BANKS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BANK

(Amounts in thousands of dollars)

All banks

Commercial banks and nondeposit trust

companies Mutual savings banks

Noninsured

Asset, liability, or capital account item

Total Insured Noninsured Total Insured Banks of

deposit1

Nondeposit

trust

companies2

Total Insured Noninsured

Total assets..................................................................................... 412,492,741 401,601,386 10,891,355 356,109,973 352,795,164 3,023,731 291,078 56,382,768 48,806,222 7,576,546

Cash, balances with other banks, and cash collection

1,019,666 909,658 110,008 items—total.......................................................................... 58,240,700 57,577,382 663,318 57,221,034 56,667,724 505,530 47,780

Currency and coin............................................................ 5,163,280

17,842,470

13,172,520

5,115,726

17,842,470

12,677,379

47,554 5,012,452

17,842,470

12,667,174

4,990,981

17 842,470

19,987 1,484 150,828 124,745 26,083

Demand balances with banks in U. S............................ 495,141 12,246,917 391,160 29,097 505,346 430,462 74,884

Other balances with banks in U. S................................. 732,340

309,605

21,020,485

696,249

259,824

20,985,734

36,091

49,781

34,751

421,658

309,605

385,858

259,824

20,941,674

21,541

49,766

23,076

14,259

15

310,682 310,391 291

Cash items in process of collection................................ 20,967,675 2,925 52,810 44,060 8.750

Securities—to tal......................................................................... 110,634,009 107,366,273 3,267,736 99,314,602 98,306,125 834,078 174,399 11,319,407 9,060,148 2,259,259

U. S. Gov’t obligations (including guaranteed)............. 62,739,439 60,471,005 2,268,434 56,985,944 56,495,520 433,870 56,554 5,753,495 3,975,485 1,778,010

Obligations of States and subdivisions..........................

Securities of Federal agencies and corporations (not

36,975,460 36,690,065 285,395 36,613,542 36,350,723 215,008 47,811 361,918 339,342 22,576

guaranteed by U. S.)..................................................... 4,634,794 4,580,732 54,062 3,789,965 3,739,048 43,868 7,049 844,829 841,684 3,145

Other bonds, notes, and debentures............................ 3,956,264 3,645,065 311,199 949,999 818,470 122,595 8,934 3,006,265 2,826,595 179,670

Corporate stocks............................................................... 2,328,052 1,979,406 348,646 975,152 902,364 18,737 54,051 1,352,900 1,077,042 275,858

Loans and discounts, net—total............................................ 232,784,202 226,088,437 6,695,765 189,687,753 188,118,000 1,532,761 36,992 43,096,449 37,970,437 5,126,012

Valuation reserves............................................................... 3,860,350 3,836,135 24,215 3,636,024 3,625,878 10,050 96 224,326 210,257 14,069

Loans and discounts, gross— to tal....................................... 236,644,552 229,924,572 6,719,980 193,323,777 191,743,878 1,542,811 37,088 43,320,775 38,180,694 5,140,081

Real estate loans—total................................................... 89,014,796 83,749,852 5,264,944 46,548,191 46,271,346 263,212 13,633 42,466,605 37,478,506 4,988,099

Secured by farm land..........................................................................

Secured by residential properties:

2,845,016 2,818,473 26,543 2,793,884 2,772,387 20,410 1,087 51,132 46,086 5,046

Insured by FHA............................................................................ 20,505,337 19,519,177 986,160 7,469,505 7,352,529 114,053 2,923 13,035,832 12,166,648 869,184

Guaranteed by V A.......................................................................... 14,033,310 13,001,002 1,032,308 2,711,594 2,664,910 46,628 56 11,321,716 10,336,092 985,624

Not insured or guaranteed by FHA or VA.................................... 34,057,616 31,529,459 2,528,157 20,202,084 20,137,423 57,969 6,692 13,855,532 11,392,036 2,463,496

Secured by other properties................................................................. 17,573,517 16,881,741 691,776 13,371,124 13,344,097 24,152 2,875 4,202,393 3,537,644 664,749

1 nanc tn rninmprriAl anH fnrpicrn h^nk^ 3,802,661

11,511,228

3,694,422

11,389,565

108,239

121,663

3,791,073

11,500,139

3,682,834

11,378,627

107,982

121,160

257 11,588 11,588

Loans to other financial institutions.............................. 352 11,089 10,938 151

Loans to brokers and dealers in securities................... 6,105,765 5,964,537 141,228 6,065,862 5,924,659 132,822 8,381 39,903 39,878 25

Other loans for carrying securities.................................

Loans to farmers directly guaranteed by the CommnHitv/ PrArlit PnKnorfltinn

2,919,738

412,830

7,672,328

66,161,524

2,865,035

410,962

7,652,108

65,548,952

54,703

1,868

20,220

612,572

2,914,301

412,830

7,670,275

65,973,561

2,860,568

410,962

7,650,055

65,370,328

48,598

1,864

19,918

599,804

5,135

4

5,437 4,467 970

Hthor Inane tn farmorc i iHincr PA2*1 302 2,053

187,963

2,053

Commercial and industrial loans.................................... 3,429 178,624 9,339

Other loans to individuals................................................ 43,848,886 43,518,906 329,980 43,271,578 43,077,851 191,683 2,044 577,308 441,055 136,253

All other loans (including overdrafts)............................ 5,194,796 5,130,233 64,563 5,175,967 5,116,648 55,768 3,551 18,829 13,585 5,244

Miscellaneous assets—to tal................................................... 10,833,830 10,569,294 264,536 9,886,584 9,703,315 151,362 31,907 947,246 865,979 81,267

Bank premises, furniture and fixtures, and real estate. 5,446,537 5,348,423 98,114 5,024,472 4,982,772 24,453 17,247 422,065 365,651 56,414

All other miscellaneous assets....................................... 5,387,293 5,220,871 166,422 4,862,112 4,720,543 126,909 14,660 525,181 500,328 24,853

130 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Total liabilities and capital accounts.....................................

Business and personal deposits—total..............................

Individuals, partnerships, and corporations—dem and. 

Individuals, partnerships, and corporations—tim e ....

Savings deposits.................................................................................

Deposits accumulated for payment of personal loans........................

Other deposits of individuals, partnerships, and corporations..........

Certified and officers’ checks, letters of credit, 

travelers’ checks, etc........................................................

Government deposits—total..................................................

United States Government—dem and.............................

United States Government—tim e .....................................

States and subdivisions—d em and...................................

States and subdivisions—tim e ..........................................

Domestic interbank and postal savings deposits—total

Commercial banks in the U. S.—dem and......................

Commercial banks in the U. S.—tim e .............................

Mutual savings banks in the U. S.—dem and.................

Mutual savings banks in the U. S.—tim e ........................

Postal savings.........................................................................

412,492,741 401,601,386 10,891,355 356,109,973 352,795,164 3,023,731 291,078 56,382,768 48,806,222 7,576,546

305,548,114

125,932,774

173,579,15/

138,188,291

1,001,772

34,389,094

6,036,183

297,366,589

125,025,810

166,401,889

131,217,061

999,966

34,184,862

5,938,890

8,181,525

906,964

7,177,268

6,971,230

1,806

204,232

97,293

254,605,333

125,552,047

123,027,988

87,680,663

1,001,426

34,345,899

6,025,298

253,109,398

124,664,936

122,516,457

87,355,589

999,892

34,160,976

5,928,005

1,380,906

809,233

474,384

305,857

1,534

166,993

97,289

115,029

77,878

37,147

19,217

17,930

4

50,942,781

380,727

50,551,169

50,507,628

346

43,195

10,885

44,257,191

360,874

43,885,432

43,861,472

74

23,886

10,885

6,685,590

19,853

6,665,737

6,646,156

272

19,309

36,144,289

11,826,783

280,625

13,387,010

10,649,871

35,924,838

11,782,734

277,414

13,281,655

10,583,035

219,451

44,049

3,211

105,355

66,836

36,108,595

11,820,022

280,347

13,385,275

10,622,951

35,890,424

11,776,596

277,179

13,279,920

10,556,729

217,748

43,003

3,168

105,355

66,222

423

423

35,694

6,761

278

1,735

26,920

34,414

6,138

235

1,735

26,306

1,280

623

43

614

15,496,012

13,838,027

461,898

884,918

293,261

17,908

15,252,023

13,785,308

457,758

773,584

217,469

17,904

243,989

52,719

4,140

111,334

75,792

4

15,494,492

13,837,928

460,477

884,918

293,261

17,908

15,250,503

13,785,209

456,337

773,584

217,469

17,904

243,888

52,618

4,140

111,334

75,792

4

101

101

1,520

99

1,421

1,520

99

1,421

Foreign government and bank deposits—total................

Foreign governments, central banks, etc.—dem and..

Foreign governm ents, central banks, etc.—tim e ..........

Banks in foreign countries—dem and..............................

Banks in foreign countries—tim e .....................................

6,703,247

809,162

4,115,931

1,476,596

301,558

6,501,583

782,664

4,054,156

1,387,455

277,308

201,664

26,498

61,775

89,141

24,250

6,703,212

809,127

4,115,931

1,476,596

301,558

6,501,554

782,635

4,054,156

1,387,455

277,308

201,588

26,447

61,775

89,116

24,250

70

45

25

35

35

29

29

6

6

Total deposits.....................................................................

Demand.........................................................................................

Time..............................................................................................

Miscellaneous liabilities—to tal............................................

Rediscounts and other borrowed m oney........................

All other miscellaneous liabilities.....................................

Total liabilities (excluding capital accounts)............

Capital accounts—total...........................................................

Preferred ca pita l....................................................................

Common stock.......................................................................

363,891,662

174,191,453

189,700,209

355,045,033

172,758,100

182,286,933

8,846,629

1,433,353

7,413,276

312,911,632

173,791,211

139,120,421

310,751,879

172,378,340

138,373,539

2,044,130

1,334,395

709,735

115,623

78,476

37,147

50,980,030

400,242

50,579,788

44,293,154

379,760

43,913,394

6,686,876

20,482

6,666,394

14,477,226

3,738,863

10,738,363

13,588,903

3,618,182

9,970,721

888,323

120,681

767,642

13,610,069

3,695,472

9,914,597

12,923,639

3,575,541

9,348,098

661,813

117,376

544,437

24,617

2,555

22,062

867,157

43,391

823,766

665,264

42,641

622,623

201,893

750

201,143

378,368,888 368,633,936 9,734,952 326,521,701 323,675,518 2,705,943 140,240 51,847,187 44,958,418 6,888,769

34,123,853

1,608,721

8,499,316

16,364,980

7,650,836

32,967,450

1,561,898

8,368,486

15,808,441

7,228,625

1,156,403

46,823

130,830

556,539

422,211

29,588,272

1,607,784

8,499,316

13,256,218

6,224,954

29,119,646

1,560,961

8,368,486

13,082,209

6,107,990

317,788

46,523

86,354

102,399

82,512

150,838

300

44,476

71,610

34,452

4,535,581

937

3,847,804

937

687,777

S urplus.....................................................................................

Undivided profits and reserves.........................................

3,108,762

1,425,882

2,726,232

1,120,635

382,530

305,247

Number of banks3........................................................................ 14,310 13,862 448 13,805 13,535 223 47 505 327 178

1 Includes asset and liability figures for 16 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. 

a Amounts shown as deposits are special accounts and univested trust funds with the latter classified as demand deposits of individuals, partnerships, and corporations.

3 Includes 4 noninsured banks of deposit for which asset and liability data are not available.

Back figures: See the Annual Report for 1964, pp. 172-173, and earlier reports.

ASSETS AND LIABILITIES OF BANKS 131

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 105. ASSETS AND LIABILITIES OF ALL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1965

BANKS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BANK

(Amounts in thousands of dollars)

Asset, liability, or capital account item

All banks

Commercial banks and nondeposit trust

companies Mutual savings banks

Total Insured Noninsured

Total Insured

Nonins

Banks of

deposit1

;ured

Nondeposit

trust

companies2

Total Insured Noninsured

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

Cash, balances with other banks, and cash collection

items—total..........................................................................

Currency and coin............................................................

437,119,198 425,893,827 11,225,371 378,899,228 375,394,111 3,189,519 315,598 58,219,970 50,499,716 7,720,254

62,059,968

5,056,194

17,992,395

15,422,567

718,376

293,334

22,577,102

61,340,719

5,008,401

17,992,395

14,847,786

697,010

255,865

22,539,262

719,249

47,793

61,042,575

4,887,698

17,992,395

14,852,555

506,126

293,334

22,510,467

60,436,719

4,865,803

17,992,395

14,354,186

484,817

255,865

22,483,653

560,332

20,417

45,524

1,478

1,017,393

168,496

904,000

142,598

113,393

25,898

Demand balances with banks in U. S..................................

Other balances with banks in U. S.................................

Balances with banks in foreign countries.....................

Cash items in process of collection...............................

Securities—total.........................................................................

U. S. Gov’t, obligations (including guaranteed)............

Obligations of States and subdivisions..........................

Securities of Federal agencies and corporations (not

guaranteed by U. S.).....................................................

Other securities 3..............................................................

Loans and discounts, net—to tal............................................

Valuation reserves............................................................ ............

Loans and discounts, gross—total........................................

Real estate loans—total.............................................................

Secured by farm land.........................................................................

Secured by residential properties:

Insured by FHA............................................................................

Guaranteed by VA.........................................................................

Not insured or guaranteed by FHA or VA...................................

Secured by other properties.................................................................

Loans to commercial and foreign banks.......................

Loans to other financial institutions..............................

Federal funds sold (loaned)

574,781

21,366

37,469

37,840

457,883

20,608

37,461

23,963

40,486

701

8

2,851

570,012

212,250

66,635

493,600

212,193

55,609

76,412

57

11,026

115,616,568

65,157,643

39,049,539

5,470,571

5,938,815

112,421,079

62,969,793

38,780,622

5,355,470

5,315,194

3,195,489

2,187,850

268,917

115,101

623,621

104,645,467

59,687,880

38,727,956

4,624,862

1,604,769

103,650,708

59,209,832

38,480,349

4,513,114

1,447,413

800,050

410,834

195,892

103,767

89,557

194,709

67,214

51,715

7,981

67,799

10,971,101

5,469,763

321,583

845,709

4,334,046

8,770,371

3,759,961

300,273

842,356

3,867,781

2,200,730

1,709,802

21,310

3,353

466,265

248,104,496

4,245,353

252,349,849

94,292,537

2.962.835

21,493,279

14,095,367

36,894,597

18,846,459

2.172.835

13,343,862

2,102,552

5,279,457

3,241,713

537,184

7,689,718

72,052,318

46,353,962

5,283,711

241,078,486

4,220,604

245,299,090

88,829,612

2,934,831

20,503,429

13,064,822

34,175,196

■ 18,151,334

2,107,517

13,200,380

2,064,215

5,109,279

3,179,888

533,948

7,670,978

71,379,881

46,013,134

5,210,258

7,026,010

24,749

7,050,759

5,462,925

28,004

989,850

1,030,545

2,719,401

695,125

65,318

143,482

38,337

170,178

61,825

3,236

18,740

672,437

340,828

73,453

202,815,164

4,022,793

206,837,957

49,675,214

2.910.551

7,702,346

2,687,718

21,997,366

14,377,233

2,160,330

13,329,369

2.102.552

5,257,843

3,236,018

537,184

7,687,805

71,898,025

45,698,638

5,254,979

201,114,143

4,011,273

205,125,416

49,393,933

2,888,012

7,592,405

2,637,439

21,929,584

14,346,493

2,095,012

13,186,038

2,064,215

5,087,694

3,175,076

533,948

7,669,065

71,235,183

45,497,461

5,187,791

1,658,376

11,273

1,669,649

265,677

21,331

106,712

50,156

59,598

27,880

65,082

142,981

38,337

161,610

53,641

3,236

18,463

658,282

199,151

63,189

42,645

247

42,892

15,604

1,208

3,229

123

8,184

2,860

236

350

45,289,332

222,560

45,511,892

44,617,323

52,284

13,790,933

11,407,649

14,897,231

4,469,226

12,5.05

14,493

39,964,343

209,331

40,173,674

39,435,679

46,819

12,911,024

10,427,383

12,245,612

,3,804,841

12,505

14,342

5,324,989

13,229

5,338,218

5,181,644

5,465

879,909

980,266

2,651,619

664,385

151

Loans to brokers and dealers in securities...................

Other loans for carrying securities.................................

Loans to farmers directly guaranteed by the Commodity Credit Corporation

8,539

7,301

21,614

5,695

21,585

4,812

29

883

Other loans to farmers (excluding real estate).............

Commercial and industrial loans....................................

Other loans to individuals................................................

All other loans (including overdrafts)............................

Miscellaneous assets—to ta l..................................................

Bank premises, furniture and fixtures, and real estate.

—net of mortgages and other liens............................

All other miscellaneous assets.......................................

277

4,560

2,026

3,999

1,913

154,293

655,324

28,732

1,913

144,698

515,673

22,467

9,595

139,651

6,265

11,338,166

5,624,591

5,713,575

11,053,543

5,525,447

5,528,096

284,623

99,144

185,479

10,396,022

5,187,819

5,208,203

10,192,541

5,144,222

5,048,319

170,761

24,360

146,401

32,720

19,237

13,483

942,144

436,772

505,372

861,002

381,225

479,777

81,142

55,547

25,595

132 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Total liabilities and capital accounts................................

Business and personal deposits—total.........................

Individuals, partnerships, and corporations—demand

Deposits of savings and loan associations.........................................

Other deposits of individuals, partnerships, and corporations..........

Individuals, partnerships, and corporations—time .

Savings deposits...............................................................................

Deposits accumulated for payment of personal loans......................

Deposits of savings and loan associations... .♦................................

Other deposits of individuals, partnerships, and corporations.........

Certified and officers’ checks, letters of credit,

travelers’ checks, etc.................................................

Government deposits—total..............................................

United States Government—demand...........................

United States Government—time..................................

States and subdivisions—demand................................

States and subdivisions—time.......................................

Domestic interbank deposits—total

Commercial banks in the U. S.—demand....................

Commercial banks in the U. S.—time...........................

Mutual savings banks in the U. S.—demand...............

Mutual savings banks in the U. S.—time......................

Foreign government and bank deposits—total...............

Foreign governments, central banks, etc.—demand..

Foreign governments, central banks, etc.—time

Banks in foreign countries—demand...........................

Banks in foreign countries—time..................................

Total deposits...............................................................

Demand........................................................................................

Time..............................................................................................

Miscellaneous liabilities—total........................................

Federal funds purchased (borrowed)...........................

Other liabilities for borrowed money........ ................

All other miscellaneous liabilities..................................

Total liabilities (excluding capital accounts)...........

Capital accounts—total......................................................

Preferred capital..............................................................

Common stock:................................................................

Surplus..............................................................................

Undivided profits and reserves.....................................

Number of banks4..................................................................

437,119,198

329,531,661

140,408,828

2,296,779

138,112,049

183,110,319 14.5,240,041

1,080,137

923,540

35,861,101

6,012,514

32,459,855

5,558,496

285,065

14,351,303

12,264,991

17,541,234

15,825,351

515,629

989,003

211,251

7,007,904

921,633

4,150,871

1,632,562

302,838

386,540,654

185,699,690

200,840,964

15,523,841

2,440,413

2,150,076

10,933,352

402,064,495

35,054,703

1,744,011

8,647,880

16,825,002

7,837,810

14,324

425,893,827

321,054,130

139,423,124

2,294,862

137,128,262

175,687,053 

138,032,101

1,078,235

922,485

35,654,232

5,943,953

32,253,974

5,530,611

281,737

14,243,803

12,197,823

17,313,105

15,779,184

511,424

860,378

162,119

6,778,763

892,867

4,086,126

1,529,097

270,673

377,399,972

184,203,017

193,196,955

14,631,509

2,438,413

1,989,090

10,204,006

392,031,481

33,862,346

1,695,350

8,507,770

16,263,422

7,395,804

13,876

11,225,371

8,477,531

985,704

1,917

983,787

7,423,266

7,213,440

1,902

1,055

206,869

68,561

205,881

27,885

3,328

107,500

67,168

228,129

46,167

4,205

128,625

49,132

229,141

28,766

64,745

103,465

32,165

9,140,682

1,496,673

7,644,009

892,332

2,000

160,986

729,346

10,033,014

1,192,357

48,661

140,110

561,580

442,006

448

378,899,228

276,810,698

140,055,917

2,296,779

137,759,138

130,754,219 

92,911,673

1,079,923

923,540

35,839,083

6,000,562

32,421,009

5,550,986

284,610

14,349,223

12,236,190

17,539,847

15,825,229

514,364

989,003

211,251

7,007,904

921,633

4,150,871

1,632,562

302,838

333,779,458

185,325,115

148,454,343

14,728,525

2,440,413

2,057,996

10,230,116

348,507,983

30,391,245

1,741,252

8,647,880

13,643,617

6,358,496

13,818

375,394,111

275,205,357

139,077,920

2,294,862

136,783,058

130,-195,436

92,554,897

1,078,207

922,485

35,639,847

5,932,001

32,216,843

5,523,816

281,330

14,241,724

12,169,973

17,311,718

15,779,062

510,159

860,378

162,119

6,778,763

892,867

4,086,126

1,529,097

270,673

331,512,681

183,836,865

147,675,816

13,976,496

2,438,413

1,898,290

9,639,793

345,489,177

29,904,934

1,692,591

8,507,770

13,464,797

6,239,776

13,547

3,189,519

1,476,965

889,617

1,917

887,700

518,789

334,484

1,716

1,055

181,534

68,559

203,874

26,878

3,280

107,499

66,217

227,676

45,714

4,205

128,625

49,132

228,838

28,523

64,745

103,405

32,165

2,137,353

1,398,820

738,533

722,572

2,000

156,662

563,910

2,859,925

329,594

48,361

91,712

107,256

82,265

221

315,598

128,376

88,380

88:380

39,994

17,702

2

292

292

453

453

303

243

129,424

89,430

39,994

29,457

3,044

26,413

158,881

156,717

300

48,398

71,564

36,455

50

58,219,970

52,720,

352,

352,

52,356,

52,333,

214

f ,018

,952

52,761,196

374,575

52,386,621

795,316

92,080

703,236

53,556,512

4,663,458

2,759

3,181,385

1,479,314

506

50,499,716

1,848,773

345,204

345,204

,491,617

,477,204

14,385

11,952

37,131

6,795

407

2,079

27,850

1,387

122

1,265

45,887,291

366,152

45,521,139

655,013

90,800

564,213

46,542,304

3,957,412

2,759

2,798,625

1,156,028

329

7,720,254

6,872,190

7,707

7,707

6,864,483

6,856,664

186

7,633

1,715

715

48

1

951

6,873,905

8,423

6,865,482

140,303

1,280

139,023

7,014,208

706,046

382,760

323,286

177

1 Includes asset and liability figures for 16 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 univested 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 "Other assets” .

4 Includes 7 noninsured banks for which asset and liability data are not available.

Back figures, 1934-1964: See the preceding table and the Annual Report for 1964, pp. 174-175, and earlier reports.

ASSETS AND LIABILITIES OF BANKS 133

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 106. ASSETS AND LIABILITIES OF ALL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1965

BANKS GROUPED BY DISTRICT AND STATE 

(Am ounts in thousands of dollars)

FDIC D is tric t and State

N u m ­

b e r o f 

b a n k s 1

A ssets

Total

L ia b ilitie s and capita l a ccou nts

Cash and 

due fro m 

banks

U. S. Gove rn m e n t 

o b lig a tio n s

O ther

s e c u ritie s 2

Loans, d iscounts, 

and o ve rd ra fts

M iscellaneous

assets

B usiness 

and p e rs o n a l3

D eposits

G overnm e n t4

Foreign 

g o v’t and 

in te rb a n k

M iscellaneous

lia b ilitie s

Total

capital

accounts

Total United States............. 14,324 62,059,968 65,157,643 50,458,925 248,104,496 11,338,166 437,119,198 329,531,661 32,459,855 24,549,138 15,523,841 35,054,703

50 States and D. C............... 14,308 61,913,288 65,008,076 50,354,955 246,926,076 11,246,141 435,448,536 328,411,095 32,246,774 24,508,023 15,349,862 34,932,782

Other areas............................ 16 146,680 149,567 103,970 1,178,420 92,025 1,670,662 1,120,566 213,081 41,115 173,979 121,921

FDIC District

D is tric t 1 .................................... 733 2,743,215 4,810,706 3,149,926 21,118,521 576,525 32,398,893 26,399,551 1,345,891 789,282 1,014,377 2,849,792

D is tric t 2 5.................................. 761 16,310,739 12,190,828 14,514,960 80,752,318 4,284,148 128,052,993 93,848,896 6,247,115 10,234,956 7,285,855 10,436,171

D is tric t 3 .................................... 1,121 5,862,001 7,041,246 6,051,012 23,872,750 839,302 43,666,311 34,437,936 2,929,065 1,511,806 1,156,427 3,631,077

D is tric t 4 .................................... 867 3,360,671 3,798,632 2,412,669 11,741,770 491,035 21,804,777 16,828,883 1,771,708 848,504 551,191 1,804,491

D is tric t 5 .................................... 1,331 3,597,196 3,855,393 2,344,424 9,358,701 485,478 19,641,192 14,089,773 2,345,073 1,184,396 439,523 1,582,427

D is tric t 6 .................................... 1,545 3,979,918 3,908,325 2,531,185 10,346,907 354,835 21,121,170 15,368,075 1,856,028 1,749,804 421,385 1,725,878

D is tric t 7 .................................... 1,364 4,167,823 6,452,912 3,523,443 15,676,231 567,405 30,387,814 23,935,205 2,817,118 783,669 714,964 2,136,858

D is tric t 8 .................................... 1,724 4,981,684 6,698,702 4,229,145 16,940,626 705,682 33,555,839 25,565,414 2,297,360 2,149,009 945,380 2,598,676

D is tric t 9 .................................... 1,193 1,549,390 2,208,104 1,434,150 5,433,485 207,264 10,832,393 8,280,981 948,425 525,479 233,445 844,063

D is tric t 1 0 ................................. 1,775 2,646,087 2,783,715 1,489,782 7,257,579 265,558 14,442,721 10,589,608 1,533,922 776,332 271,612 1,271,247

D is tric t 1 1 ................................. 1,438 5,650,405 4,381,013 3,156,965 14,173,214 757,117 28,118,714 19,910,505 3,083,318 2,273,087 619,751 2,232,053

D is tric t 1 2 6............................... 472 7,210,839 7,028,067 5,621,264 31,432,394 1,803,817 53,096,381 40,276,834 5,284,832 1,722,814 1,869,931 3,941,970

State

A la b a m a ..................................... 263 622,895 733,318 491,037 1,677,520 61,191 3,585,961 2,643,340 446,950 145,651 55,903 294,117

A la s k a ......................................... 14 46,725 67,737 41,995 218,959 13,857 389,273 250,456 101,126 3,951 10,806 22,934

A riz o n a ....................................... 18 318,698 257,871 227,836 1,457,548 94,741 2,356,694 1,833,703 237,488 33,933 54,443 197,127

A rk a n s a s .................................... 246 453,589 359,504 307,305 1,087,925 35,390 2,243,713 1,723,166 202,755 120,306 19,125 178,361

C a lifo rn ia ................................... 199 5,354,718 5,013,210 4,165,673 23,949,585 1,369,916 39,853,102 30,117,634 3,736,296 1,487,323 1,579,792 2,932,057

C o lo ra d o ..................................... 250 556,442 528,428 262,179 1,810,209 89,305 3,246,563 2,505,001 241,707 151,077 80,335 268,443

C o n n e c tic u t.............................. 139 623,798 777,099 1,040,442 5,368,009 139,138 7,948,486 6,701,307 325,176 73,957 165,387 682,659

D e la w a re .. ............................... 22 185,229 227,152 211,901 712,709 23,682 1,360,673 1,061,628 132,140 13,008 30,682 123,215

D is tric t o f C o lu m b ia .............. 15 436,049 553,376 116,480 1,369,131 44,918 2,519,954 2,089,403 50,791 140,436 50,589 188,735

F lo rid a ......................................... 443 1,595,227 1,894,725 990,331 3,829,269 246,687 8,556,239 6,085,248 1,083,700 541,206 182,805 663,280

G eo rg ia ....................................... 429 982,883 824,211 513,009 2,786,424 128,786 5,235,313 3,686,459 562,338 364,146 170,950 451,420

H a w a ii......................................... 12 152,723 164,338 120,660 665,664 64,718 1,168,103 791,867 186,128 28,562 37,730 123,816

Id a h o ........................................... 25 129,380 172,713 92,784 565,992 23,290 984,159 773,524 119,022 4,294 16,132 71,187

Illin o is .......................................... 1,051 4,211,411 5,555,216 3,657,592 14,530,044 648,093 28,602,356 21,610,986 1,958,282 1,940,462 910,165 2,182,461

In d ia n a ....................................... 426 1,229,086 1,962,407 760,180 3,767,137 132,273 7,851,083 5,966,662 817,325 214,752 272,382 579,962

Io w a .............................................. 673 770,273 1,143,486 571,553 2,410,582 57,589 4,953,483 3,954,428 339,078 208,547 35,215 416,215

K a n s a s ........................................ 599 604,997 848,717 487,208 1,756,929 46,621 3,744,472 2,627,930 597,937 141,988 39,915 336,702

K e n tu c k y .................................... 346 764,917 847,814 359,749 1,779,644 55,070 3,807,194 2,884,748 299,662 265,752 38,120 318,912

L o u is ia n a ................................... 214 988,952 971,540 531,976 2,200,485 80,424 4,773,377 3,333,854 611,287 395,285 68,391 364,560

M a in e ........................................... 76 139,764 259,023 213,693 1,014,343 29,318 1,656,141 1,384,638 65,131 16,317 36,355 153,700

134 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
M aryland................................ 128 626,969 827,193 526,173 2,747,422 128,257 4,856,014 3,870,220 341,863 136,441 102,745 404,745

M assachusetts...................... 340 1,638,368 3,234,675 1,307,039 11,476,125 336,698 17,992,905 14,343,041 710,773 649,310 666,693 1,623,088

M ichigan................................. 354 1,968,194 2,897,001 1,957,530 8,365,241 301,936 15,489,902 12,278,268 1,499,368 350,266 331,622 1,030,378

M innesota.............................. 723 1,101,659 1,344,314 949,028 3,728,249 136,181 7,259,431 5,529,135 537,130 452,237 177,323 563,606

M ississippi............................. 196 396,191 403,139 350,047 1,065,488 48,814 2,263,679 1,674,726 252,085 133,393 29,865 173,610

M issouri.................................. 655 1,717,963 1,779,760 1,200,943 4,578,356 157,573 9,434,595 6,723,462 846,758 846,127 217,968 800,280

M ontana.................................. 131 179,387 261,978 138,228 626,825 26,835 1,233,253 956,915 123,558 37,875 25,913 88,992

Nebraska................................ 436 462,852 485,302 246,332 1,332,094 40,780 2,567,360 1,891,730 192,744 196,129 54,184 232,573

Nevada.................................... 9 91,849 141,426 93,891 421,392 28,396 776,954 589,979 102,079 5,905 13,561 65,430

New H am pshire.................... 106 104,259 206,756 132,728 1,155,267 24,793 1,623,803 1,351,340 68,242 13,101 39,812 151,308

New Jersey............................ 254 1,336,665 2,020,394 2,128,890 7,698,487 248,063 13,432,499 11,093,212 836,894 119,708 376,172 1,006,513

New M exico............................ 64 155,321 206,409 105,169 556,583 23,612 1,047,094 767,063 158,629 19,522 22,398 79,482

New Y ork7.............................. 470 14,651,227 9,794,681 12,070,199 71,198,066 3,957,511 111,671,684 80,623,268 5,094,572 10,061,255 6,706,772 9,185,817

North Carolina....................... 146 894,622 635,227 683,628 2,750,219 128,627 5,092,323 3,628,955 543,813 311,135 187,261 421,159

North Dakota......................... 169 120,826 293,154 229,141 510,818 22,226 1,176,165 881,920 158,379 18,766 16,632 100,468

O hio......................................... 543 2,587,934 3,305,886 2,204,965 9,113,694 298,609 17,511,088 13,839,962 1,414,858 468,990 375,698 1,411,580

Oklahom a............................... 421 914,462 778,145 452,182 2,048,116 74,674 4,267,579 3,108,283 419,894 271,027 88,304 380,071

Oregon.................................... 52 452,281 545,067 419,358 1,812,550 112,652 3,341,908 2,553,373 442,274 35,902 78,686 231,673

Pennsylvania......................... 578 3,274,067 3,735,360 3,846,047 14,759,056 540,693 26,155,223 20,597,974 1,514,207 1,042,816 780,729 2,219,497

Rhode Island......................... 18 175,834 211,020 390,953 1,520,085 33,798 2,331,690 1,914,885 135,941 16,011 89,570 175,283

South Carolina...................... 129 303,066 287,575 214,943 822,517 34,534 1,662,635 1,220,219 205,074 43,686 49,915 143,741

South Dakota........................ 170 147,518 308,658 117,753 567,593 22,022 1,163,544 913,011 129,358 16,601 13,577 90,997

Tennessee.............................. 298 1,043,449 921,247 663,188 2,900,982 106,802 5,635,668 4,036,699 506,853 517,619 146,172 428,325

Texas....................................... 1,142 4,187,434 2,945,193 2,291,984 9,958,598 558,340 19,941,549 13,975,885 2,075,914 1,824,347 474,519 1,590,884

U tah......................................... 56 249,703 190,616 194,765 894,409 31,656 1,561,149 1,096,780 271,126 50,533 26,722 115,988

V erm ont.................................. 54 61,192 122,133 65,071 584,692 12,780 845,868 704,340 40,628 20,586 16,560 63,754

V irginia.................................... 262 808,581 912,080 641,131 3,158,951 114,654 5,635,397 4,434,616 451,237 177,143 123,095 449,306

W ashington............................ 104 724,398 731,994 492,138 2,868,479 122,199 4,939,208 4,053,443 297,209 106,214 104,752 377,590

West Virginia.......................... 187 291,384 583,181 230,314 893,530 40,045 2,038,454 1,585,470 178,930 39,663 37,586 196,805

W isconsin............................... 584 970,543 1,593,504 805,733 3,543,853 133,196 7,046,829 5,690,275 500,425 218,651 110,960 526,518

W yom ing................................. 69 107,334 143,123 41,881 310,231 14,178 616,747 456,664 81,640 16,111 8,874 53,458

Other area

Pacific Islands8.....................

Panama Canal Zone9..........

1 7,836

1,226

966 31,773

3,591

12,339

24,794

38,138

52,914

29,611

1,502,253

33,015

16,763

1,015,160

16,909

12,663

158,166

125

5

1,570

180

1,295

Puerto Rico10......................... 11 131,530 140,220 102,254 1,090,111 40,943 169,884 118,100

Virgin Islands11..................... 4 6,088 8,381 1,716 52,945 16,754 85,884 55,628 25,343 42 2,345 2,526

1 Includes 7 noninsured banks (1 in Illinois, 2 in Iowa, 1 in Nebraska, 1 in North Dakota, and 2 in Texas) for which data are not available.

2 Excludes corporate stocks, other than Federal Reserve Bank stock, of national banks; reported with “ Miscellaneous assets” .

3 Demand and time deposits of individuals, partnerships, and corporations, certified and officers’ checks, letters of credit, etc.

4 Deposits of the United States Government, States and subdivisions and postal savings.

5 Includes Puerto Rico and the Virgin Islands.

6 Includes Alaska, Hawaii, Pacific Islands, and the Panal Canal Zone.

* 7 Includes asset and liability data for 6 insured branches operated by 2 insured banks in Puerto Rico. See also Table 105, footnote 1.

8 In United States possessions (American Samoa, Guam, Midway Islands, and Wake Island) and Trust Territories (Kwajalein, Palau Islands, Ponape Island, Saipan, and Truk Atoll). Consists of asset and liability 

data for 1 noninsured bank in American Samoa and 5 branches of an insured bank in California, 1 noninsured in Caroline Islands, Truk Atoll (Moen Island) and 4 in the Mariana Islands (3 insured on Guam and 1 noninsured on Saipan). Also, 7 branches of an insured bank in Hawaii, consisting of 1 insured branch on Guam and 6 noninsured branches: 2 in Caroline Islands, Palau Islands (Koror) and Ponape Island (Kolonia); 2 

in Marshall Islands, Kwajalein Atoll; 1 in Midway Islands, Sand Island; and 1 on Wake Island.

9 Consists of asset and liability data for 2 noninsured branches operated by 2 insured banks in New York.

10 Includes asset and liability data for 15 insured branches operated by 2 insured banks in New York.

11 Includes asset and liability data for 4 insured branches operated by an insured bank in New York.

Note: Data for branches described in footnotes 5, 6, 7, 8, and 9 are not included in the figures for the States in which the parent banks are located.

Back figures, 1945-1964: See the Annual Report for 1964, pp. 176-177, and earlier reports.

ASSETS AND LIABILITIES OF BANKS 135

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Federal Reserve Bank of St. Louis
Table 107. ASSETS AND LIABILITIES OF ALL INSURED BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE AND DECEMBER CALL DATES, 1962 THROUGH 1965

(Amounts in thousands of dollars)

Assets

June 30,

1962

Dec. 28,

1962

June 29,

1963

Dec. 20,

1963

June 30,

1964

Dec. 31,

1964

June 30,

1965

Dec. 31,

1965

313,495,544 335,934,112 340,388,582 354,809,831 366,105,553 392,174,389 401,601,386 425,893,827

49,281,330

3,295,166

16,839,174

54,582,416

4,382,304

17,679,794

51,665,841

3,596,056

16,529,350

51,166,975

4,157,140

17,149,613

53,768,750

4,671,492

16,773,717

60,926,055

4,690,732

17,580,743

57,577,382

5,115,726

17,842,470

61,340,719

5,008,401

17,992,395

11,850,224

312,949

178,081

16,805,736

13,021,881

416,948

237,431

18,844,058

12,321,213

575,162

245,254

18,398,806

12,086,463

508,860

298,992

16,965,907

12,464,351

612,791

365,678

18,880,721

14,567,230

782,609

300,841

23,003,900

12,677,379

696,249

259,824

20,985,734

14,847,786

697,010

255,865

22,539,262

68,688,732 70,605,519 67,667,433 67,135,755 63,269,961 66,698,504 60,471,005 62,969,793

8,440,540

3,657,486

11,467,088

15,362,125

569,852

1,058,937

14,401,180

10,072,252

3,424,328

234,944

11,791,016

3,996,330

5,322,085

19,150,662

449,760

2,285,148

11,648,541

13,598,734

2,123,031

240,212

9,308,207

3,255,341

4.627.951

19,844,588

421,017

1,508,840

10,068,307

15,957,065

2.469.952

206,165

11,208,197

1,670,638

6,138,257

16,757,376

393,648

1,155,685

13,468,861

13,667,498

2,433,898

241,697

9,202,774

32,445

6,552,501

17,064,558

368,416

1,873,321

12,795,720

12,710,246

2,364,612

305,368

13,533,705 9,180,492 1

7,225,361

12,152,456

339,889

1,915,555

15,616,677

13,588,921

2,019,222

306,718

7,212,091

7,635,127

316,039

1,005,734

17,046,637

15,483,680

2,370,586

220,619

1 C)

31,778,264

23,458,724

34,126,296

25,076,053

37,145,497

28,037,856

39,700,867

30,022,176

41,120,989

31,615,328

43,386,304

33,711,653

46,895,268

36,690,065

49,451,286

38,780,622

2,910,983

4,013,148

457,069

938,340

3,486,442

4,064,339

465,705

1,033,757

3,597,544

3,909,101

481,062

1,119,934

4,215,668

3,787,856

491,175

1,183,992

3,813,096

3,909,572

} 1,782,993

4,195,363

3,667,522

1,811,766

4,580,732

3,645,065

1,979,406

5,355,470

| 25,315,194

100,466,996 104,731,815 104,812,930 106,836,622 104,390,950 110,084,808 107,366,273 112,421,079

Total assets.

Cash, balances with other banks, and cash collection items—total....

Currency and coin.....................................................................................

Reserve with Federal Reserve Banks (member banks)......................

Demand balances with banks in the United States (except private

banks and American branches of foreign banks)............................

Other balances with banks in the United States.................................

Balances with banks in foreign countries............................................

Cash items in process of collection.......................................................

Obligations of the U. S. Government, direct and guaranteed—total

Direct:

Treasury bills.........................................................................................

Treasury certificates of indebtedness................................................

Treasury notes maturing in 1 year or less.........................................

Treasury notes maturing after 1 year.................................................

United States non-marketable bonds.................................................

Other bonds maturing in 1 year or less..............................................

Other bonds maturing in 1 to 5 years.................................................

Other bonds maturing in 5 to 10 years..............................................

Other bonds maturing after 10 years.................................................

Guaranteed obligations.............................................................................

Other securities—total.......................................................................................

Obligations of States and subdivisions.................................................

Securities of Federal agencies and corporations (not guaranteed

by U. S.).............................................................................................

Other bonds, notes, and debentures....................................................

Federal Reserve Bank stock...................................................................

Other corporate stocks............................................................................

Total securities.

136 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Loans and discounts, net—total...................................................................... 156,309,473 168,801,321 175,498,110 188,232,982 198,530,566 211,329,246 226,088,437 241,078,486

Valuation reserves........................................................................................ 2,878,319 2,909,688 3,226,382 3,213,551 3,461,096 3,762,450 3,836,135 4,220,604

Loans and discounts, gross—to tal.................................................................. 159,187,792 171,711,009 178,724,492 191,446,533 201,991,662 215,091,696 229,924,572 245,299,090

Real estate loans—total........................................................................... 59,043,989 62,750,776 67,032,568 70,980,241 75,153,728 79,556,374 83,749,852 88,829,612

Secured, by farm land...................................................................................................... 1,955,870 2,048,943 2,266,236 2,350,099 2,583,231 2,665,233 2,818,473 2,934,831

Secured by residential properties:

Insured by FHA......................................................................................................... 14,328,907 15,176,739 16,255,516 17,016,748 17,780,208 18,771,324 19,519,177 20,503,429

Guaranteed by V A ....................................................................................................... 11,151,068 11,472,042 12,054,896 12,317,825 12,598,984 12,813,742 13,001,002 13,064,822

Not insured or guaranteed by FHA or VA................................................................ 20,862,495 22,471,202 23,930,946 25,767,552 27,693,182 29,550,691 31,529,459 34,175,196

Secured by other properties.............................................................................................. 10,745,649 11,581,850 12,524,974 13,528,017 14,498,123 15,755,384 16,881,741 18,151,334

Loans to domestic commercial and foreign banks.............................. 1,476,902 2,560,370 1,915,015 3,610,250 2,859,830 3,437,217 3,694,422 2,107,517

Loans to other financial institutions....................................................... 7,232,209 8,473,355 8,646,348 9,448,495 10,443,943 10,858,968 11,389,565 13,200,380

Federal funds sold (loaned)................................................................... e) C) (3) O (3) , (3) <3) 2,064,215

Loans to brokers and dealers in securities........................................... 3,242,678 5,177,925 4,629,754 5,349,920 5,504,905 5,381,309 5,964,537 5,109,279

Other loans for purchasing or carrying securities................................ 1,988,629 2,114,934 2,211,103 2,488,339 2,698,850 2,799,024 2,865,035 3,179,888

Loans to farmers directly guaranteed by the Commodity Credit Corporation ............................................................................................... 870,226 1,111,661 799,576 816,838 366,380 513,580 410,962 533,948

Other loans to farmers (excluding loans on real estate)..................... 5,906,652 5,963,558 6,733,102 6,647,074 7,312,822 6,984*, 795 7,652,108 7,670,978

Commercial and industrial loans (including open market paper)...... 46,062,053 48,860,921 50,022,702 53,144,882 55,257,892 60,197,360 65,548,952 71,379,881

Other loans to individuals for personal expenditures—total............... 29,653,900 30,790,186 32,921,628 34,919,957 37,952,479 40,205,923 43,518,906 46,013,134

Passenger automobile instalment loans........................................................................... 9,908,821 10,534,920 11,693,717 12,451,250 13,847,341 14,686,090 16,260,214 17,174,769

Other retail consumer instalment loans........................................................................... 2,756,744 2,858,885 3,008,854 3,201,535 3,494,772 3,749,799 3,938,527 4,178,989

Residential repair and modernization instalment loans.................................................. 2,737,832 2,825,491 2,853,029 2,976,040 2,986,774 3,088,258 3,106,720 3,215,450

Other instalment loans for personal expenditures........................................................... 4,828,838 5,092,511 5,475,283 5,807,404 6,256,116 6,567,231 7,136,733 7,587,860

Single-payment loans for personal expenditures............................................................ 9,421,665 9,478,379 9,890,745 10,483,728 11,367,476 12,114,545 13,076,712 13,856,066

All other loans (including overdrafts).................................................... 3,710,554 3,907,323 3,812,696 4,040,537 4,440,833 5,157,146 5,130,233 5,210,258

Total loans and securities......................................................................... 256,776,469 273,533,136 280,311,040 295,069,604 302,921,516 321,414,054 333,454,710 353,499,565

Bank premises, furniture and fixtures, and other real estate—total . 3,975,558 4,172,496 4,428,257 4,707,697 4,924,022 5,096,486 5,348,423 45,525,447

Bank premises.......................................................................................... 2,714,370 2,852,967 3,122,721 3,343,007 i

Furniture and fixtures.............................................................................. 778,152 819,099 838,200 892,555

Real estate owned other than bank premises...................................... 123,522 126,659 128,093 112,159 > O O O (0

Investments and other assets indirectly representing bank premises or other real estate................................................................... 359,514 373,771 339,243 359,976 /

Miscellaneous assets—total............................................................................. 3,462,187 3,646,064 3,983,444 3,865,555 4,491,265 4,737,794 5,220,871 5,528,096

Customers’ liability on acceptances outstanding................................. 1,456,612 1,618,937 1,549,880 1,591,458 1,690,721 1,697,120 1,824,831 1,862,571

Other assets.............................................................................................. 2,005,575 2,027,127 2,433,564 2,274,097 2,800,544 3,040,674 3,396,040 3,665,525

PERCENTAGES

To total assets:

Cash and balances with other banks..................................................... 15.7% 16.2% 15.2% 14.4% 14.7% 15.5% 14.3% 14.4%

U. S. Government obligations, direct and guaranteed........................ 21.9 21.0 19.9 18.9 17.3 17.0 15.1 14.8

Other securities........................................................................................ 10.1 10.2 10.9 11.2 11.2 11.1 11.7 11.6

Loans and discounts................................................................................ 49.9 50.3 51.5 53.1 54.2 53.9 56.3 56.6

Other assets.............................................................................................. 2.4 2.3 2.5 2.4 2.6 2.5 2.6 2.6

Total capital accounts.............................................................................. 8.3 8.1 8.1 8.2 8.2 8.0 8.2 8.0

To total assets other than cash and U. S. Government obligations:

Total capital accounts.............................................................................. 13.4 12.9 12.5 12.2 12.1 11.8 11.6 11.2

ASSETS AND LIABILITIES OF BANKS 137

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 107. ASSETS AND LIABILITIES OF ALL INSURED BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 

JUNE AND DECEMBER CALL DATES, 1962 THROUGH 1965— CONTINUED

(Amounts in thousands of dollars)

June 30, 

1962

Dec. 28, 

1962

June 29, 

1963

Dec. 20, 

1963

June 30, 

1964

Dec. 31, 

1964

June 30, 

1965

Dec. 31, 

1965

313,495,544 335,934,112 340,388,582 354,809,831 366,105,553 392,174,389 401,601,386 425,893,827

233,748,980

111,730,739 

> (,)

117,596,062

101,648,557

765,933

\ 15,181,572

4,422,179

252,498,086

123,554,500

O

124,486,860

106,841,377

784,531

16,860,952

4,456,726

253,187,093

116,024,030

O

132,715,299

111,621,506

790,380

20,303,413

4,447,764

266,669,373

123,842,677

C)

138,370,425

114,738,550

837,081

22,794,794

4,456,271

273,587,716

121,036,112

(0

147,739,255

119,858,822

895,387

26,985,046

4,812,349

295,697,698

134,613,437

(0

155,194,386

125,341,342

957,210

28,895,834

5,889,875

297,366,589

125,025,810

O

166,401,889

131,217,061

999,966

34,184,862

5,938,890

321,054,130

139,423,124

/ 2,294,862

\137,128,262

175,687,053 

138,032,101

1,078,235

f 922,485

\ 35,654,232

5,943,953

27,970,218

9,544,587

295,840

11,794,877

6,334,914

25,611,034

6,833,754

266,199

12,066,083

6,444,998

31,127,763

11,026,837

250,834

12,388,673

7,461,419

27,171,277

6,734,239

268,300

12,263,435

7,905,303

31,764,288

10,257,861

257,574

12,562,582

8,686,271

30,103,156

6,507,450

270,984

13,499,246

9,825,476

35,924,838

11,782,734

277,414

13,281,655

10,583,035

32,253,974

5,530,611

281,737

14,243,803

12,197,823

13,341,497

12,392,738

218,066

669,337

42,901

18,455

14,889,921

13,907,406

241,908

684,285

38,153

18,169

13,980,532

12,924,632

281,667

710,091

46,888

17,254

14,270,000

13,323,112

269,914

610,294

49,252

17,428

14,261,223

13,051,155

359,132

749,168

82,561

19,207

16,756,448

15,492,886

384,815

740,382

118,835

19,530

15,252,023

13,785,308

457,758

773,584

217,469

17,904

17,313,105

15,779,184

511,424

860,378

162,119

O

4,138,626

660,437

2,162,539

1,182,770

132,880

4,548,654

724,335

2,431,688

1,265,391

127,240

4,854,482

626,447

2,856,924

1,264,201

106,910

5,193,098

841,612

3,045,448

1,177,311

128,727

5,733,893

675,616

3,574,254

1,316,494

167,529

6,424,074

826,137

3,893,693

1,454,685

249,559

6,501,583

782,664

4,054,156

1,387,455

277,308

6,778,763

892,867

4,086,126

1,529,097

270,673

279,199,321

152,397,664

126,801,657

297,547,695

163,492,480

134,055,215

303,149,870

159,412,675

143,737,195

313,303,748

163,248,951

150,054,797

325,347,120

164,461,337

160,885,783

348,981,376

179,024,098

169,957,278

355,045,033

172,758,100

182,286,933

377,399,972

184,203,017

193,196,955

Liabilities and capital

Total liabilities and capital accounts..........................................................

Business and personal deposits—total...................................................

Individuals, partnerships, and corporations—demand......................

Deposits of savings and loan associations.......................................................................

Other deposits of individuals, partnerships, and corporations........................................

Individuals, partnerships, and corporations—time..............................

Savings deposits..............................................................................................................

Deposits accumulated for payment of personal loans.....................................................

Deposits of savings and loan associations.......................................................................

Other deposits of individuals, partnerships, and corporations........................................

Certified and officers' checks, letters of credit, travelers' checks, etc,

Government deposits—total......................................................................

United States Government—demand...................................................

United States Government—time..........................................................

States and subdivisions—demand....................................................

States and subdivisions—time................................................................

Domestic interbank and postal savings deposits—total.......................

Commercial banks in the U. S.—demand............................................

Commercial banks in the U. S.—time...................................................

Mutual savings banks in the U. S.—demand.......................................

Mutual savings banks in the U. S.—time..............................................

Postal savings...........................................................................................

Foreign government and bank deposits—total.......................................

Foreign governments, central banks, etc.—demand..........................

Foreign governments, central banks, etc.—time.................................

Banks in foreign countries—demand....................................................

Banks in foreign countries—time..........................................................

Total deposits........................................................................................

Demand.......................................................................................................................

Time............................................................................................................................

138 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Miscellaneous liabilities—to tal........................................................................

Federal funds purchased (borrow ed)..........................................................

Other liabilities for borrowed m oney...........................................................

Acceptances outstanding...............................................................................

O ther lia b ilitie s..................................................................................................

Total liabilities (excluding capital accounts).......................................

Capital accounts—total......................................................................................

Capital stock, notes, and debentures.........................................................

S urplus................................................................................................................

8,188,211

} 782,362

1,498,878

5,906,971

11,290,601

3,590,812

1,655,648

6,044,141

9,589,877

1,516,411

1,597,026

6,476,440

12,612,070

3,614,177

1,620,293

7,377,600

10,726,686

2,059,441

1,724,102

6,943,143

12,024,063

2,611,535

1,737,101

7,675,427

13,588,903

3,618,182

1,855,467

8,115,254

14,631,509

/ 2,438,413 

\ 1,989,090 

1,897,569 

8,306,437

287,387,532 308,838,296 312,739,747 325,915,818 336,073,806 361,005,439 368,633,936 392,031,481

26,108,012

6,826,298

13,430,586

5,024,430

826,698

27,095,816

6,937,502

13,822,081

5,488,605

847,628

27,648,835

7,172,516

14,258,908

5,363,677

853,734

28,894,013

7,451,066

14,637,286

5,941,518

864,143

30,031,747

8,304,806

15,133,523

5,661,210

932,208

31,168,950

8,739,510

15,552,060

5,872,927

1,004,453

32,967,450

9,930,384

15,808,441

6,165,156

1,063,469

33,862,346

10,203,120

16,263,422

6,259,687

1,136,117

Undivided p ro fits..............................................................................................

Reserves.............................................................................................................

MEMORANDA

Captial stock, notes, and debentures:

Par or face value—total..................................................................................

Common stock...............................................................................................

Capital notes and debentures...................................................................

Preferred stock..............................................................................................

Num ber of banks.....................................................................................................

6,826,598

6,789,688

22,090

14,820

6,937,802

6,882,362

20,646

34,794

7,172,816

7,114,462

21,094

37,260

7,451,366

7,282,980

130,547

37,839

8,305,106

7,745,231

521,404

38,471

8,739,510

7,886,432

811,331

41,747

9,930,384

8,368,486

1,520,921

40,977

10,203,120

8,507,770

1,655,460

39,890

13,442 13,457 13,527 13,621 13,728 13,820 13,862 13,876

1 Not available.

2 Excludes as of December 31,1965, corporate stocks, other than Federal Reserve Bank stock, of national banks; reported with "Other assets” .

3 Prior to December 31,1965, "Federal funds sold (loaned)” not reported separately; most were included with loans to banks.

4 Net of mortgages and other liens; previously included with “ Other liabilities” .

Back figures, 1934-1962: See the Annual Report for 1962, pp. 126-129, and earlier reports.

ASSETS AND LIABILITIES OF BANKS 139

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 108. ASSETS AND LIABILITIES OF INSURED COMMERCIAL AND INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES 

(STATES AND OTHER AREAS), DECEMBER AND JUNE CALL DATES, 1963 THROUGH 1965

(Amounts in thousands of dollars)

Assets

Total assets.

Cash, balances with other banks, and cash

collection items—total...................................

Currency and coin...........................................

Reserve with Federal Reserve Banks (member banks)...................................................

Demand balances with banks in the United

States (except private banks and American branches of foreign banks)............

Other balances with banks in the United

States...........................................................

Balances with banks in foreign countries...

Cash items in process of collection..............

Obligations of the U. S. Government, direct

and guaranteed—total..................................

Direct:

Treasury bills...............................................

Treasury certificates of indebtedness —

Treasury notes maturing in 1 year or less

Treasury notes maturing after 1 year. ...

United States non-marketable bonds. . ..

Other bonds maturing in 1 year or less..

Other bonds maturing in 1 to 5 years —

Other bonds maturing in 5 to 10 years ...

Other bonds maturing after 10 years. . ..

Guaranteed obligations.................................

Other securities—total..........................................

Obligations of States and subdivisions.......

Securities of Federal agencies and corporations (not guaranteed by U. S.)................

Other bonds, notes, and debentures..........

Federal Reserve Bank stock........................

Other corporate stocks..................................

Total securities.

Insured commercial banks Insured mutual savings banks

Dec. 20,

1963

June 30,

1964

Dec. 31,

1964

June 30,

1965

Dec. 31,

1965

Dec. 20,

1963

June 30,

1964

Dec. 31,

1964

June 30,

1965

Dec. 31,

1965

311,790,848 321,083,191 345,130,205 352,795,164 375,394,111 43,018,983 45,022,362 47,044,184 48,806,222 50,499,716

50,445,462

4,053,057

52,969,638

4,552,579

60,032,916

4,551,889

56,667,724

4,990,981

60,436,719

4,865,803

721,513

104,083

799,112

118,913

893,139

138,843

909,658

124,745

904,000

142,598

17,149,613

11,644,517

16,773,717

12,005,653

17,580,743

14,090,586

17,842,470

12,246,917

17,992,395

14,354,186 441,946 458,698 476,644 430,462 493,600

367,817

298,992

16,931,466

433,514

365,678

18,838,497

558,335

300,841

22,950,522

385,858

259,824

20,941,674

484,817

255,865

22,483,653

141,043 179,277 224,274 310,391 212,193

34,441 42,224 53,378 44,060 55,609

62,811,737 58,953,758 62,588,052 56,495,520 59,209,832 4,324,018 4,316,203 4,110,452 3,975,485 3,759,961

10,999,429

1,651,564

5,921,023

16,402,791

277,927

1,141,495

12,931,738

12,244,036

1,137,045

104,689

8,994,405

32,171

6,313,028

16,742,337

267,411

1,862,679

12,021,002

11,487,935

1,097,971

134,819

13,301,211 8,873,722 V

208,768

19,074

217,234

354,585

115,721

14,190

537,123

1,423,462

1,296,853

137,008

208,369

274

232,494 306,770 309,700

7,097,197

11,872,107

247,362

1,904,040

14,766,228

12,481,688

778,067

140,152

7,110,395

7,501,922

230,805

999,112

16,168,820

14,393,676

1,113,357

103,711

I C)

239,473

322,221

101,005

10,642

774,718

1,222,311

1,266,641

170,549

128,164

280,349

92,527

11,515

850,449

1,107,233

1,241,155

166,566

101,696

133,205

85,234

6,622

877,817

1,090,004

1,257,229

116,908

146,292

89,827

67,037

31,850

851,953

975,170

1,177,097

111,035

34,660,292

29,611,314

36,056,681

31,230,057

38,371,648

33,343,807

41,810,605

36,350,723

44,440,876

38,480,349

5,040,575

410,862

5,064,308

385,271

5,014,656

367,846

5,084,663

339,342

5,010,410

300,273

3,503,243

784,083

491,175

270,477

3,099,001

931,823

3,446,144

762,790

3,739,048

818,470

4,513,114

| 21,447,413

712,425

3,003,773

714,095

2,977,749

749,219

2,904,732

841,684

2,826,595

842,356

2,731,805

| 795,800 818,907 902,364 913,515 987,193 992,859 1,077,042 1,135,976

97,472,029 95,010,439 100,959,700 98,306,125 103,650,708 9,364,593 9,380,511 9,125,108 9,060,148 8,770,371

140 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Loans ana aiscoums, nei—toiai..........................

Valuation reserves.................................................

Loans and discounts, gross—total......................

Real estate loans—total.....................................

Secured, by farm land........................................................

Secured by residential properties:

Insured by FHA...........................................................

Guaranteed by V A.........................................................

Not insured or guaranteed by FHA or VA..................

Secured by other properties...............................................

Loans to domestic commercial and foreign

banks................................................................

Loans to other financial institutions................

Federal funds sold (loaned)..............................

Loans to brokers and dealers in securities

Other loans for purchasing or carrying securities....................................................................

Loans to farmers directly guaranteed by the

Commodity Credit Corporation......................

Other loans to farmers (excluding loans on

real estate).......................................................

Commercial and industrial loans (including

open market paper)........................................

Other loans to individuals for personal expenditures—total..................................................

Passenger automobile instalment loans..............................

Other retail consumer instalment loans............................

Residential repair and modernization instalment loans...

Other instalment loans for personal expenditures.............

Single-payment loans for personal expenditures...............

All other loans (including overdrafts)...............

Total loans and securities.......................

Bank premises, furniture and fixtures, and

other real estate—total..................................

Bank premises....................................................

Furniture and fixtures........................................

Real estate owned other than bank premises.

Investments and other assets indirectly representing bank premises or other real

estate................................................................

Miscellaneous assets—total.................................

Customers’ liability on acceptances outstanding............................................................

Other assets........................................................

PERCENTAGES

To total assets:

Cash and balances with other banks...............

U.S. Government obligations, direct and guaranteed...............................................................

Other securities..................................................

Loans and discounts..........................................

Other assets........................................................

Total capital accounts........................................

To total assets other than cash and U. S. Government obligations:

Total capital accounts........................................

1M, 833,367

2,994,811

158,928,178

39,088,205

2,303,251

7,047,238

2,817,152

16,380,889

10,539,675

3,594,633

9,441,479

(3)

5,325,642

2,476,760

816,838

6,644,575

52,984,200

34,531,746

12,437,272

3,200,612

2,909,590

5,718,920

10,265,352

4,024,100

164,480,262

3,249,257

167,729,519

41,447,444

2,535,533

7,106,329

2,754,793

17,734,238

11,316,551

2,840,826

10,435,192

0

5,492,413

2,686,925

366,380

7,310,676

55,120,779

37,598,158

13,828,325

3,493,806

2,916,619

6,150,538

11,208,870

4,430,726

175,096,194

3,552,676

178,648,870

43,733,086

2 , 616,604

7,243,497

2 , 684,468

18,810,798

12.377.719

3,420,989

10,849,646

O

5,355,550

2,794,217

513,580

6,982,643

60,040,383

39,814,778

14.661.720

3,748,783

3,012,861

6,441,204

11,950,210

5,143,998

188,118,000

3,625,878

191,743,878

46,271,346

2,772,387

7,352,529

2,664,910

20,137,423

13,344,097

3,682,834

11,378,627

(3)

5,924,659

2,860,568

410,962

7,650,055

65,370,328

43,077,851

16,230,256

3,936,684

3,025,310

6,987,170

12,898,431

5,116,648

201,114,143

4,011,273

205,125,416

49,393,933

7,592,405

2,637,439

21,929,584

14,346,493

2,095,012

13,186,038

2,064,215

5,087,694

3,175,076

533,948

7,669,065

71,235,183

45,497,461

17,139,214

4,176,950

3,126,804

7,388,640

13,665,853

5,187,791

32,299,615

218,740

32,518,355

31,892,036

46,848

9,969,510

9,500,673

9,386,663

2,988,342

15,617

7,016

24,278

11,579

2,499

160,682

388,211

13,978

923

218,376

16,437

34,050,304

211,839

34,262,143

33,706,284

47,698

10,673,879

9,844,191

9,958,944

3,181,572

19,004

8,751

12,492

11,925

2,146

137,113

354,321

19,016

966

70,155

105,578

158,606

10,107

36,233,052

209,774

36.442.826

35,823,288

48,629

11.527.827

10,129,274

10,739,893

3,377,665

16,228

9,322

25,759

4,807

2,152

156,977

391,145

24,370

1,016

75,397

126,027

164,335

13,148

37,910,437

210,257

38,180,694

37,478,506

46,086

10,336,092

11,392,036

3,537,644

11,588

10,938

39,878

4,467

2,053

178,624

441,055

29,958

1,843

81,410

149,563

178,281

13,585

39,964,343

209,331

40,173,674

39,435,679

46,819

12,911,024

10,427,383

12,245,612

3,804,841

12,505

14,342

21,585

4,812

1,913

144,698

515,673

35,555

2,039

190,213

22,467

>

CO

CO

CO

>

z

o

>

00

m

co

O~r\

0D

>

7Z

if)

253,405,396 259,490,701 276,055,894 286,424,125 304,764,851 41,664,208 43,430,815 45,358,160 47,030,585 48,734,714

4,394,800

3,082,103

863,387

89,334

359,976

4,587,288 4,753,588

C)

4,982,772

C) 0)

312,897

260,904

29,168

22,825

336,734

271,529

33,462

31,743

342,898

277,072

39,117

26,709

365,651

295,200

42,064

28,387

381,225

308,289

45,641

27,295

3,545,190

1,591,458

1,953,732

16.2%

20.1

11.1

50.0

2.6

8.1

12.8

4,035,564

1,690,721

2,344,843

16.5%

18.4

11.2

51.2 

2.7

8.2

12.7

4,287,807

1,697,120

2,590,687

17.4%

18.2

11.1

50.7

2.6

8.0

12.4

4,720,543

1,824,831

2,895,712

16.1%

16.0

11.9

53.3

2.7

8.3

12.2

5,048,319

1,862,571

3,185,748

16.1%

15.8

11.8

53.6

2.7

8.0

11.7

320.365

320.365

1.7%

10.0

11.7

75.1

1.5

8.3

9.4

455,701

455701

1.8%

9.6

11.2

75.6

1.8

8.0

9.1

449,987

449*987

1.9%

8.7 

10.7 

77.0

1.7

7.9

8.9

500,328

500 *328

1.9%

8.1

10.4

77.8

1.8

7.9

479,777

479^777

1.8%

7.5 

9.9

79.1

1.7

7.8

8.6

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 108. ASSETS AND LIABILITIES OF INSURED COMMERCIAL AND INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES

(STATES AND OTHER AREAS), DECEMBER AND JUNE CALL DATES, 1963 THROUGH 1965— CONTINUED

(Amounts in thousands of dollars)

Insured commercial banks Insured mutual savings banks

Liabilities and capital Dec. 20,

1963

June 30,

1964

Dec. 31,

1964

June 30,

1965

Dec. 31,

1965

Dec. 20,

1963

June 30,

1964

Dec. 31,

1964

June 30,

1965

Dec. 31,

1965

Total liabilities and capital accounts................... 311,790,848 321,083,191 345,130,205 352,795,164 375,394,111 43,018,983 45,022,362 47,044,184 48,806,222 50,499,716

Business and personal deposits—to tal............ 228,042,312

123,561,302

\

232,821,964

120,715,072

252,983,403

134,300,734

253,109,398

124,664,936

275,205,357

139,077,920

38,627,061 40,765,752 42,714,295 44,257,191 45,848,773

Individuals, partnerships, and corporations

—demand................................................... 281,375 321,040 312,703 360,874 345,204

/ 2,294,862

Other deposits of individuals, partnerships, and

} (,)

C) C) 0)

\136,783,058 281,375 321,040 312,703 360,874 345,204

Individuals, partnerships, and corporations

—time......................................................... 100,033,046

76,413,701

836,450

107,304,540

79,447,955

894,700

11? 804,696 122,516,457 130,195,436 38,337,379 40,434,715 42,389,690 43,885,432 45,491,617

82,966,971 87,355,589 92,554,897 38,324,849 40,410,867 42,374,371 43,861,472 45,477,204

Deposits accumulated for payment of personal loans.... 956,410 999,892 1,078,207

/ 922,485

631 687 800 74 28

Other deposits of individuals, partnerships, and corporations .....................................................................

> 22,782,895 26,961,885 28,881,315 34,160,976

( 35,639,847 11,899 23,161 14,519 23,886 14,385

Certified and officers’ checks, letters of

credit, travelers' checks, etc.................... 4,447,964 4,802,352 5,877,973 5,928,005 5,932,001 8,307 9,997 11,902 10,885 11,952

Government deposits—total................................ 27,142,510 31,735,033 30,068,312 35,890,424 32,216,843 28,767 29,255 34,844 34,414 37,131

United States Government—demand ......... 6,729,214

268,203

12,261,389

7,883,704

10,251,709

257,556

12,561,082

8,664,686

6,500,876

270,832

11,776,596 5,523,816 5,025 6,152 6,574 6,138 6,795

United States Government—time.................. 277,179 281,330 97 18 152 235 407

States and subdivisions—demand................ 13,497,662 13,279,920 14,241,724 2,046 1,500 1,584 1,735 2,079

States and subdivisions—tim e....................... 9,798,942 10,556,729 12,169,973 21,599 21,585 26,534 26,306 27,850

Domestic interbank and postal savings deposits—total ..................................................... 14,268,764

13,323,080

268,710

610,294

49,252

17,428

14,259,755

13,051,094

357,725

749,168

82,561

19,207

16,754,488 15,250,503 17,311,718 1,236 1,468 1,960 1,520 1,387

Commercial banks in the U. S.—demand...

Commercial banks in the U. S.—time .......

15,492,798

382,943

13,785,209

456,337

773,584

217,469

17,904

15,779,062

510,159

860,378

162,119

o

32

1,204

61

1,407

88

1,872

99

1,421

122

1,265

Mutual savings banks in the U. S.—demand.

Mutual savings banks in the U. S.—tim e....

Postal savings

740,382

118,835

19,530

Foreign government and bank deposits—

total ... ............................ 5,193,043

841,590

3,045,415

1,177,311

128,727

5,733,851

675,575

3,574,254

1,316,493

167,529

6,424,074

826,137

3,893,693

1,454,685

249,559

6,501,554

782,635

4,054,156

1,387,455

277,308

6,778,763

892,867

4,086,126

1,529,097

270,673

55 42 29

Foreign governments, central banks, etc.—

demand ...................................... 22 41 29

Foreign governments, central banks, etc.—

time 33

Banks in foreign countries—demand 1

Banks in foreign countries—time

Total deposits .................................................. 274,646,629

162,952,144

111,694,485

284,550,603 306,230,277 310,751,879 331,512,681 38,657,119 40,796,517 42,751,099 44,293,154 45,887,291

Demand. ... ........................................................ 164,122,545

120,428,058

178,691,247 172,378,340 183,836,865 296,807 338,792 332,851 379,760 366,152

Time.......... ........................................................ 127,539,030 138,373,539 147,675,816 38,360,312 40,457,725 42,418,248 43,913,394 45,521,139

142 FEDERAL DEPOSIT INSURANCE CORPORATION

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Miscellaneous liabilities—to tal...........................

Federal funds purchased (borrow ed)...........

11,821,823

} 3,576,530

1,620,293

6,625,000

10,118,845

2,039,406

1,724,102

6,355,337

11,461,821

2,591,133

1,737,101

7,133,587

12,923,639

3,575,541

1,855,467

7,492,631

13,976,496

/ 2,438,413 

\ 1,898,290 

1,897,569 

7,742,224

790,247 607,841 562,242 665,264 655,013

Other liabilities for borrowed m oney.............

Acceptances o utstanding..................................

37,647 20,035 20,402 42,641 90,800

Other liabilities..................................................... 752,600 587,806 541,840 622,623 564,213

Total liabilities (excluding capital accounts) ............................................................

Capital accounts—total.........................................

Capital stock, notes, and debentures ...........

S urplus...................................................................

Undivided p ro fits .................................................

Reserves................................................................

286,468,452 294,669,448 317,692,098 323,675,518 345,489,177 39,447,366 41,404,358 43,313,341 44,958,418 46,542,304

25,322,396

7,450,533

12,163,471

5,113,403

594,989

26,413,743

8,304,128

12,551,781

4,913,133

644,701

27,438,107

8,738,836

12,893,189

5,113,007

693,075

29,119,646

9,929,447

13,082,209

5,362,653

745,337

29,904,934

10,200,361

13,464,797

5,437,575

802,201

3,571,617

533

2,473,815

828,115

269,154

3,618,004

678

2,581,742

748,077

287,507

3,730,843

674

2,658,871

759,920

311,378

3,847,804

937

2,726,232

802,503

318,132

3,957,412

2,759

2,798,625

822,112

333,916

MEMORANDA

Capital stock, notes, and debentures:

Par or face value—total.....................................

Common stock.................................................

7,450,833

7,282,980

130,014

37,839

8,304,428

7,745,231

520,726

38,471

8,738,836

7,886,432

810,657

41,747

9,929,447

8,368,486

1,519,984

40,977

10,200,361

8,507,770

1,652,701

39,890

533 678 674 937 2,759

Capital notes and debentures......................

Preferred stock................................................

533 678 674 937 2,759

Num ber of banks........................................................ 13,291 13,401 13,493 13,535 13,547 330 327 327 327 329

1 Not available.

2 Excludes as of December 31,1965, corporate stocks, other than Federal Reserve Bank stock, of national banks; reported with "Other assets” .

3 Prior to December 31,1965, "Federal funds sold (loaned)” not reported separately; most were included with loans to banks.

4 Net of mortgages and other liens; previously included with "Other liabilities” .

Back figures, 1984-1963: See the Annual Report for 1963, pp. 140-143, and earlier reports.

ASSETS AND LIABILITIES OF BANKS 143

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Federal Reserve Bank of St. Louis
Table 109. AVERAGE ASSETS AND LIABILITIES AND ASSETS AND LIABILITIES PER $100 OF TOTAL ASSETS OF INSURED 

COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1965

BY CLASS OF BANK

Asset or liability item

Total

Members F.R. System Not 

m embers 

National State F.R. System

Average assets and liabilities (in thousands of dollars) 1

Assets—total........................................................................................................................................................................................ 357,214,409

59,013,596

59,419,551

41,540,772

187,661,591

9,578,899

209,723,566

36,052,146

32,733,320

24,317,652

110,846,392

5,774,056

89,789,067

15,863,727

12,959,311

10,338,330

47,927,616

2,700,083

57,701,776

7,097,723

13,726,920

6,884,790

28,887,583

1,104,760

United States Government obligations.....................................................................................................................................

Other securities2.............................................................................................................................................................................

Loans and discounts ...................................................................................................................................................

All other assets ...................................................................................................................................................

Liabilities and capital—total ..................................................................................................................................................... 357,214,409

315,643,533

178,089,360

137,554,173

12,750,015

28,820,861

209,723,566

185,333,844

104,888,829

80,445,015

7,597,295

16,792,427

89,789,067

78,327,285

45,809,958

32,517,327

4,215,451

7,246,331

57,701,776

51,982,404

27,390,573

24,591,831

937,269

4,782,103

Total deposits....................................................................................................................................................................................................

Demand deposits . . . . . . . .........................................................................................................................................................

Time and savings deposits .................................................................................................................................................................................

Borrowings and other lia b ilitie s..................................................................................................................................................

Total capital accounts....................................................................................................................................................................

Assets and liabilities per $100 of total assets1

Assets—total . . ....................................................................................................................................................... $100.00

16.52

16.63

11.63 

52.54

2.68

$100.00

17.19

15.61

11.60

52.85

2.75

$100.00

17.67

14.43

11.51

53.38

3.01

$100.00

12.30

23.79

11.93

50.06

1.92

Cash and due from banks .....................................................................................................................................................

United States G overnment obligations.....................................................................................................................................

Other securities2 ..................................................................................................................................................................

Loans and discounts ....................................................................................................................................................................

All other assets ......................................................................................................................................................................

Liabilities and capital—total ....................................................................................................................................................... $100.00

88.36

49.85

38.51

3.57

8.07

$100.00

88.37

50.01

38.36

3.62

8.01

$100.00

87.23

51.02

36.21

4.70

8.07

$100.00

90.09

47.47

42.62

1.62

8.29

Total deposits..................................................................................................................................................................................

Demand deposits...................................................................................................................................................................................................

Time and savings deposits....................................................................................................................................................................................

Borrowings and other lia b ilitie s..................................................................................................................................................

Total capital accounts....................................................................................................................................................................

1 Asset and liability items are averages of the amounts reported for the following call dates: December 31,1964; June 30,1965; and December 31,1965.

2 Excludes as of December 31,1965, corporate stocks, other than Federal Reserve Bank stock, of national banks; reported with “ All other assets” .

Note: For income data by class of bank, see Tables 115 and 116, pp. 156-159.

Back figures, 1934-1964: See Tables 113 and 114, pp. 152-155; the Annual Report for 1964, p. 186; and earlier reports.

144 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table 110. ASSETS AND LIABILITIES AND ASSETS AND LIABILITIES PER $100 OF TOTAL ASSETS OF INSURED COMMERCIAL BANKS

OPERATING THROUGHOUT 1965 IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1965

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS

Asset or liability item All 

banks1

Banks with 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

Assets and liabilities (in

thousands of dollars)

Assets—total................................................................

Cash and due from banks....................................

United States Government obligations.............

Other securities2......................................................

Loans and discounts..............................................

All other assets........................................................

Liabilities and capital—total...................................

Total deposits...........................................................

Demand deposits...............................................................

Time and savings deposits................................................

Borrowings and other liabilities..........................

Total capital accounts............................................

373,994,597

60,276,798

59,012,116

44,365,449

200,216,192

10,124,042

447,353

84,984

141,125

26,920

190,135

4,189

3,054,395

474,996

944,466

234,891

1,366,929

33,113

16,118,898

2,357,381

4,457,141

1,668,837

7,391,564

243,975

23,741,467

3,314,447

5,797,710

3,018,538

11,215,891

394,881

38,878,993

5,151,557

8,543,127

5,306,693

19,139,674

737,942

26,118,929

3,456,325

5,316,455

3,543,296

13,276,232

526,621

24,963,647

3,533,788

4,662,523

3,253,062

12,991,328

522,946

68,798,509

11,213,644

10,499,726

8,255,868

37,277,412

1,551,859

171,872,406

30,689,676

18,649,843

19,057,344

97,367,027

6,108,516

373,994,597

330,309,463

183,232,016

147,077,447

13,917,033

29,768,101

447,353

388,846

272,316

116,530

1,984

56,523

3,054,395

2,707,335

1,659,993

1,047,342

16,057

331,003

16,118,898

14,468,893

7,988,085

6,480,808

129,338

1,520,667

23,741,467

21,501,660

11,376,776

10,124,884

253,479

1,986,328

38,878,993

35,278,953

18,082,820

17,196,133

610,503

2,989,537

26,118,929

23,637,742

12,308,007

11,329,735

548,895

1,932,292

24,963,647

22,529,077

11,958,187

10,570,890

579,127

1,855,443

68,798,509

61,485,591

35,251,517

26,234,074

2,027,213

5,285,705

171,872,406

148,311,366

84,334,315

63,977,051

9,750,437

13,810,603

Assets and liabilities per

$100 of total assets

Assets—total................................................................

Cash and due from banks....................................

United States Government obligations .............

Other securities2......................................................

Loans and discounts..............................................

All other assets........................................................

Liabilities and capital—total...................................

Total deposits..........................................................

Demand deposits...............................................................

Time and savings deposits................................................

Borrowings and other liabilities..........................

Total capital accounts............................................

$100.00

16.12

15.78

11.86

53.53

2.71

$100.00

19.00

31.55

6.02

42.50

.93

$100.00

15.55

30.92

7.69

44.75

1.09

$100.00

14.63

27.65

10.35

45.86

1.51

$100.00

13.96

24.42

12.72

47.24

1.66

$100.00

13.25

21.97

13.65

49.23

1.90

$100.00

13.23

20.35

13.57

50.83

2.02

$100.00

14.16

18.68

13.03

52.04 

2.09

$100.00

16.30

15.26

12.00

54.18

2.26

$100.00

17.86

10.85

11.09

56.65

3.55

$100.00

88.32 

48.99

89.33

3.72 

7.96

$100.00

86.92

60.87

26.05

.44

12.64

$100.00

88.64

54.35

34.29

.52

10.84

$100.00

89.76

49.56

40.20

.80

9.44

$100.00

90.57

47.92

42.65

1.07

8.36

$100.00

90.74

46.51

44-23

1.57

7.69

$100.00

90.50

47.12

43.38

2.10

7.40

$100.00

90.25

47.90

42.35

2.32

7.43

$100.00

89.37

51.24

38.13

2.95

7.68

$100.00

86.29

49.07

37.22

5.67

8.04

Number of banks, December 3 1 ............................ 13,366 521 1,790 4,301 3,046 2,295 691 330 302 90

1 This group of banks is the same as the group shown in Table 115 under the heading “ Operating throughout the year". These ratios differ slightly from the ratios for all insured commercial banks shown in Table

2 Excludes corporate stocks, other than Federal Reserve Bank stock, of national banks; reported with "All other assets” . 

Note: For income and expense data by size of bank, see Tables 117 and 118, pp. 160-163.

Back figures, 1941-1964: See the Annual Report for 1964, p. 187, and earlier reports.

ASSETS AND LIABILITIES OF BANKS 145

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Federal Reserve Bank of St. Louis
Table 111. AVERAGE ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES

(STATES AND OTHER AREAS), BY STATE,1965 1

(Amounts in thousands of dollars)

State

Assets1

Total

Liabilities and capital accounts1

Cash and 

due from 

banks

U.S. Governm ent 

obligations

Other

securities2

Loans

and

discounts

All

other

assets Total

Deposits

Demand Time and 

savings

Borrowings 

and other 

liabilities

Total

capital

accounts

Total United States............................ 59,013,596 59,419,551 41,540,772 187,661,591 9,578,899 357,214,409 315,643,533 178,089,360 137,554,173 12,750,015 28,820,861

50 States and D. C.............................. 58,926,033 59,329,470 41,473,943 187,142,758 9,549,462 356,421,666 314,953,928 177,784,544 137,169,384 12,718,396 28,749,342

Other areas........................................... 87,563 90,081 66,829 518,833 29,437 792,743 689,605 304,816 384,789 31,619 71,519

State

A labam a............................................. 564,833 686,742 440,958 1,581,887 60,199 3,334,619 3,001,159 1,855,558 1,145,601 51,962 281,498

Alaska................................................. 47,167 72,157 38,484 175,884 12,335 346,027 320,515 170,584 149,931 5,844 19,668

A rizona................................................ 293,226 254,679 215,320 1,411,818 84,968 2,260,011 2,023,561 1,032,196 991,365 53,928 182,522

A rkansas............................................ 421,140 339,053 288,541 1,018,987 33,792 2,101,513 1,912,249 1,248,918 663,331 18,707 170,557

C alifornia............................................ 5,560,484 5,147,517 3,904,948 22,812,318 1,279,503 38,704,770 34,457,175 15,338,618 19,118,557 1,393,132 2,854,463

Colorado............................................. 530,643 538,113 236,557 1,673,812 79,906 3,059,031 2,748,835 1,562,119 1,186,716 61,099 249,097

Connecticut....................................... 564,675 465,927 480,968 2,076,514 85,212 3,673,296 3,233,533 2,080,235 1,153,298 134,858 304,905

Delaware............................................. 197,453 227,202 119,675 495,550 21,367 1,061,247 934,614 685,191 249,423 28,979 97,654

District of Colum bia........................ 427,448 545,436 113,808 1,277,264 43,626 2,407,582 2,179,264 1,420,269 758,995 52,040 176,278

Florida................................................. 1,423,370 1,863,206 862,364 3,522,614 235,646 7,907,200 7,100,633 4,323,428 2,777,205 170,957 635,610

Georgia...............................................

Hawaii .............................................

919,443 796,832 451,906 2,564,097 115,545 4,847,823 4,284,913 2,767,834 1,517,079 131,588 431,322

137,015 159,867 103,636 618,056 56,757 1,075,331 936,303 483,759 452,544 33,578 105,450

Idaho ............................................. 124,096 169,333 85,907 532,525 22,826 934,687 850,788 493,417 357,371 16,615 67,284

Illinois ................................................ 4,048,068 5,567,455 3,511,843 13,453,980 597,538 27,178,884 24,328,123 13,185,311 11,142,812 810,505 2,040,256

Indiana............................................... 1,177,452 1,896,960 687,211 3,416,129 118,710 7,296,462 6,517,201 3,824,089 2,693,112 231,714 547,547

Iowa ................... 727,430 1,093,777 514,027 2,245,310 55,279 4,635,823 4,199,585 2,501,900 1,697,685 36,036 400,202

Kansas................................................ 559,537 836,278 465,522 1,650,280 44,212 3,555,829 3,200,069 2,063,007 1,137,062 32,058 323,702

Kentucky............................................ 699,672 801,674 336,022 1,663,364 51,638 3,552,370 3,208,665 2,180,683 1,027,982 37,559 306,146

Louisiana ............... 881,484 954,427 493,903 2,039,179 76,117 4,445,110 4,016,944 2,744,818 1,272,126 71,961 356,205

M aine.................................................. 115,084 155,220 97,539 511,885 20,739 900,467 792,441 415,358 377,083 28,187 79,839

M aryland............................................

M assachusetts.................................

575,371 679,596 380,316 1,999,243 71,771 3,706,297 3,325,360 2,035,153 1,290,207 86,305 294,632

1,487,700 1,108,544 682,271 4,469,895 217,305 7,965,715 6,786,582 5,022,967 1,763,615 455,024 724,109

Michigan ................... 1,936,326 2,986,828 1,855,377 7,606,234 274,364 14,659,129 13,359,128 5,790,181 7,568,947 312,402 987,599

Minnesota ................... 1,046,395 1,344,282 763,578 3,132,571 122,171 6,408,997 5,760,894 3,056,335 2,704,559 148,049 500,054

M ississippi......................................... 362,752 383,511 332,214 995,507 46,829 2,120,813 1,922,267 1,255,056 667,211 31,352 167,194

146 FEDERAL DEPOSIT INSURANCE CORPORATION

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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

Puerto Rico.......

Virgin Islands. . .

1,607,988

165,556

448,441

94,519

84,398

1,306,012

157,027

13,787,126

816,897

105,209

2,499,080

835,378

441,837

3,186,231

152,526

279,021

137,320

985,487

3,900,169

238,130

57,980

771,044

670,342

283,421

984,984

101,646

84,763

2,800

1,761,070

252,777

479,720

134,728

94,465

1,814,423

212,174

7,911,920

637,644

247,646

3,220,775

783,603

506,068

3,507,993

137,545

285,935

298,459

919,937

2,934,287

184,817

96,902

898,987

653,804

565,230

1,574,057

139,888

83,132

6,949

1,096,738

126,668

233,699

73,899

44,581

1,721,069

91,628

8,709,479

605,146

145,510

1,981,499

399,348

345,430

3,093,085

250,018

189,800

104,912

605,616

2,050,864

150,896

59,185

577,149

398,394

195,761

720,628

40,046

65,613

1,216

4,354,697

599,687

1,253,542

419,791

388,221

5,734,338

538,614

39,100,440

2,531,516

468,834

8,644,318

1,921,573

1,659,578

11,558,718

761,730

758,532

543,063

2,716,587

9,441,865

848,635

371,155

2,936,325

2,190,412

844,150

3,311,462

300,072

498,569

20,264

142,333

25,709

38,577

27,029

11,111

203,954

22,909

3,045,302

120,912

21,629

278,612

71,405

104,328

453,200

20,174

33,361

21,246

97,340

542,845

28,733

10,328

107,850

113,901

37,231

127,250

13,838

29,005

432

8,962,826

1,170,397

2,453,979

749,966

622,776

10,779,796

1,022,352

72,554,267

4,712,115

988,828

16,624,284

4,011,307

3,057,241

21,799,227

1,321,993

1,546,649

1,105,000

5,324,967

18,870,030

1,451,211

595,550

5,291,355

4,026,853

1,925,793

6,718,381

595,490

761,082

31,661

8,030,815

1,059,946

2,185,115

676,225

539,449

9,652,239

929,478

61,294,088

4,122,362

898,204

14,886,545

3,569,719

2,769,801

19,173,692

1,162,817

1,364,868

1,004,777

4,796,549

16,884,929

1,312,538

537,891

4,736,232

3,617,462

1,704,458

6,108,144

534,784

661,769

27,836

5.091.994 

582,890

1,531,399

365,963

304,414

4,879,191

573,638

37,235,584

2.561.995 

472,886

7,645,008

2,390,676

1,305,366

9,981,962

540,034

1,058,952

547,725

2,749,266

10,775,045

653,943

185,048

2,479,200

2,031,921

988,454

3,022,515

292,491

295,381

9,435

2,938,821

477,056

653,716

310,262

235,035

4,773,048

355,840

24,058,504

1,560,367

425,318

7,241,537

1,179,043

1,464,435

9,191,730

622,783

305,916

457,052

2,047,283

6,109,884

658,595

352,843

2,257,032

1,585,541

716,004

3,085,629

242,293

366,388

18,401

176,303

26,110

46,818

14,290

23,619

315,052

16,102

5,176,820

192,967

13,811

372,583

70,235

71,101

678,541

57,937

44,188

12,997

126,269

442,530

27,132

10,453

121,079

96,515

32,659

109,018

29,987

1,632

755,708

84,341

222,046

59,451

59,708

812,505

76,772

6,083,359

396,786

76,813

1,365,156

371,353

216,339

1,946,994

101,239

137,593

87,226

402,149

1,542,571

111,541

47,206

434,044

312,876

188,676

501,219

51,878

69,326

2,193

1 Asset and liability items are averages of the amounts reported for the following'call dates: December 31,1964; June 30,1965; and December 31,1965.

2 Excludes as of December 31, 1965, corporate stocks, other than Federal Reserve Bank stock, of national banks; reported with “ All other assets”’.

Note: For income data by State, see Table 119, pp. 164-173.

Back figures, 1946-1964: See the Annual Report for 1964, pp. 188-189, and earlier reports.

ASSETS AND LIABILITIES OF BANKS 147

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BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS AND BY RATIOS OF SELECTED ITEMS TO ASSETS

Table 112. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1965

Ratios

Ratios of obligations of States and subdivisions to

total assets of—

Z ero.....................................................................................

More than zero but less than 1 percent...................

1 to 5 percent...................................................................

5 to 10 percent................................................................

10 to 15 percent..............................

15 to 20 percent..............................................................

20 percent or m ore........................................................

Ratios of U. S. Government obligations to total

assets of—

Less than 10 percent 

10 to 20 percent 

20 to 30 percent

30 to 40 percent ..................

40 to 50 percent............................................................

50 to 60 percent............................................................

60 percent or m ore......................................................

Ratios of loans to total assets of—

Less than 10 percent.....................

10 to 20 percent..............................

20 to 30 percent..............................

30 to 40 percent..............................

40 to 50 percent..............................

50 to 60 percent..............................

60 percent or m ore.........................

Ratios of cash and due from banks to total assets ofLess than 10 percent...................................................

10 to 15 percent 

15 to 20 percent

20 to 25 percent 

25 to 30 percent 

30 to 35 percent 

35 percent or more.

All

banks Less

than

$1,000,000

$1,000,000

to

$2,000,000

$2,000,000

to

$5,000,000

1,609 235 472 638

893 65 296 393

2,719 153 604 1,123

3,616 67 295 1,121

2,853 17 119 666

1,252 17 40 267

606 4 29 147

865 33 92 257

3,874 101 321 930

4,406 140 493 1,372

2,743 126 502 1,099

1,142 90 276 494

392 43 127 163

126 25 44 40

29 16 4 6

193 24 45 73

838 68 188 334

2,475 140 397 944

4,387 142 589 1,396

3,993 122 436 1,109

1,633 46 196 493

3,015 62 357 955

5,334 144 687 1,655

3,071 148 413 1,043

1,353 90 219 439

462 38 95 170

175 36 48 56

138 40 36 37

Number of banks with deposits of—

$5,000,000

to

$10,000,000

186

84

452

938

867

347

189

175

904

1,154

584

194

42

10

1

33

167

558

1,072

871

361

721

1,250

702

279

72

22

17

$ 10,000,000

to

$25,000,000

63

42

269

712

690

367

158

156

861

863

327

73

15

6

2

12

63

337

799

774

314

612

1,014

450

174

43

5

3

$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

9 4 2

5 4 3 1

65 30 17 6

223 103 118 39

229 123 109 33

118 52 38 6

44 14 16 5

49 30 43 30

320 188 193 56

240 83 57 4

76 22 7

6 7 2

2

1

2 3 1

8 8 2

66 19 12 2

235 84 64 6

291 151 171 68

91 65 53 14

166 85 54 3

329 130 100 25

139 65 80 31

50 40 42 20

9 9 16 10

7 1

1 4

148 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Ratios of total capital accounts to total assets other

than cash and due from banks and U. S. Government obligations of—

Less than 10 percent........................................

10 to 15 percent.................................................

15 to 20 percent.................................................

20 to 25 percent.................................................

25 to 30 percent.................................................

30 to 35 percent.................................................

35 to 40 percent.................................................

40 percent or more............................................

Ratios of total capital accounts to total assets other

than cash and due from banks, U. S. Government obligations, C.C.C. loans, and F.H.A. and

V.A. real estate loans of—

Less than 10 percent...................................................

10 to 15 percent...........................................................

15 to 20 percent............................................................

20 to 25 percent............................................................

25 to 30 percent...........................................................

30 to 35 percent...........................................................

35 to 40 percent...........................................................

40 percent or m ore......................................................

Ratios of total capital accounts to total assets of—

Less than 4 percent......................................................

4 to 6 percent.................................................................

6 to 8 percent.................................................................

8 to 10 percent.............................................................. 10to 12 percent............................................................

12 to 15 percent............................................................

15 percent or more......................................................

1,860 4

5,774 61

3,100 102

1,332 110

623 62

339 65

193 41

327 113

1,533 4

5,669 49

3,208 95

1,456 110

711 65

373 59

207 38

391 138

47 2

1,010 2

4,707 42

4,074 100

1,969 125

1,065 145

676 142

13,548 558

40

385

535

355

209

133

65

133

35

328

503

378

238

148

70

155

1

19

327

520

427

321

240

Number of banks. 1,855

Back figures, 1958-1964: See the Annual Report for 1964, pp. 190-191, and earlier reports.

236 446 629 259 128 96 22

1,595 1,671 1,278 362 173 184 65

1,391 664 309 59 20 17 3

625 171 52 10 5 4

266 61 17 3 4 1

103 27 10 1

69 15 3

70 8 3

195 362 536 217 103 71 10

1,472 1,649 1,317 387 191 202 74

1,406 730 347 72 27 22 6

687 193 64 14 4 6

308 73 18 3 5 1

121 33 11 1

81 13 5

85 10 3

7 8 12 8 8 1

139 255 364 136 47 43 5

1,243 1,321 1,074 331 175 154 40

1,490 965 621 173 81 86 38

853 338 160 32 12 15 7

409 118 50 11 7 4

214 58 20 2

4,355 3,063 2,301 693 330 303 90

ASSETS AND LIABILITIES OF BANKS 149

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Table

Table

Table

Table

Table

Table

Table

Table

Table

INCOME OF INSURED BANKS

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

areas), 1957-1965

114. Ratios of income of insured commercial banks in the United States (States 

and other areas), 1957-1965

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

areas), 1965

By class of bank

116. Ratios of income of insured commercial banks in the United States (States 

and other areas), 1965

By class of bank

117. Income of insured commercial banks operating throughout 1965 in the 

United States (States and other areas)

Banks grouped according to amount of deposits

118. Ratios of income of insured commercial banks operating throughout 1965 

in the United States (States and other areas)

Banks grouped according to amount of deposits

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

areas), by State, 1965

120. Income of insured mutual savings banks, 1957-1965

121. Ratios of income of insured mutual savings banks, 1957-1965

150 FEDERAL DEPOSIT INSURANCE CORPORATION

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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 year. Data for 4 

insured branches in Guam of 2 insured banks in California and 

Hawaii, for 6 insured branches in New York of 2 insured banks in 

Puerto Rico, for 15 insured branches in Puerto Rico and for 4 

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 151

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Table 113. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1957-1965

(Amounts in thousands of dollars)

Income item 1957 1958 1959 1960 1961 1962 1963 1964 1965

Current operating revenue—total.................................................. 8,050,416 8,500,949 9,669,352 10,723,545 11,069,604 12,218,959 13,509,713 15,024,487 16,817,187

Interest on U. S. Government obligations............................... 1,442,379 1,544,023 1,732,174 1,790,341 1,901,732 2,093,207 2,176,454 2,240,389 2,224,711

Interest and dividends on other securities............................. 412,497 501,978 546,253 578,783 629,134 759,030 921,060 1,085,334 1,285,287

Interest and discount on loans................................................... 4,879,676 5,046,782 5,856,688 6,698,655 6,891,442 7,578,200 8,516,837 9,612,079 10,999,867

Service charges and fees on loans............................................ 83,815 94,674 111,991 108,655 117,259 139,645 155,478 173,159 204,996

Service charges on deposit accounts........................................ 440,892 486,507 531,916 589,954 630,458 681,243 728,857 781,405 842,775

Other charges, com m issions, fees, etc..................................... 186,815 191,408 205,935 218,566 223,283 237,446 248,362 280,289 304,276

Trust d ep a rtm e n t........................................................................... 354,520 379,395 426,016 460,251 502,871 543,916 573,252 629,694 689,628

Other current operating revenue................................................ 249,828 256,183 258,381 278,340 473,425 >186,272 >189,413 >222,138 1 265,647

Current operating expenses—total............................................... 5,119,182 5,612,723 6,264,207 6,932,820 7,440,492 8,589,177 9,714,980 10,897,460 12,486,120

Salaries—office rs............................................................................ 773,769 827,142 892,657 966,643 21,028,869 21,098,146 21,183,264 21,284,140 2 1,392,765

Salaries and wages—other em ployees..................................... 1,493,778 1,573,330 1,684,159 1,831,323 21,869,961 21,975,406 22,101,111 22,234,922 22,369,259

Officer and employee b en e fits.................................................... (3) (3) (3) (*) 377,494 419,098 457,033 490,732 525,692

Fees paid to directors and co m m itte es.................................... 45,396 48,271 51,866 56,292 59,794 63,236 67,469 72,176 77,093

Interest on tim e and savings deposits..................................... 1,141,715 1,380,575 1,580,250 1,785,086 2,106,645 2,845,283 3,464,308 4,088,061 5,070,781

Interest on borrowed m oney....................................................... 49,538 24,161 78,350 87,385 37,997

(4)

64,325 106,517 127,277 189,519

Taxes other than on net incom e.................................................

Recurring depreciation on banking house, fu rn itu re and

205,903 221,571 252,763 285,801 (4) (4) (4) (4)

fixtu re s........................................................................................... 146,262 168,371 191,424 212,493 (5) (5) (5) (5) (5)

Occupancy expense of bank prem ises—n e t........................... (6) C5) (6) (6) 510,691 555,670 608,462 670,243 731,573

Furniture and equipm ent............................................................. (7) (7) (7) (7) 224,852 267,885 311,518 362,301 411,889

Other current operating expenses............................................. 1,262,823 1,369,305 1,532,739 1,707,797 81,224,189 *1,300,128 81,415,298 *1,567,608 8 1,717,549

Net current operating earnings...................................................... 2,931,235 2,888,223 3,405,145 3,790,725 3,629,112 3,629,782 3,794,733 4,127,027 4,331,067

Recoveries, transfers from valuation reserves, and profits—

total.................................................................................................

On securities:

198,413 868,115 328,889 574,826 708,171 467,061 468,450 322,104 390,368

Profits on securities sold or redeem ed................................. 64,368 681,554 47,277 329,322 453,730 256,987 167,445 74,723 84,619

Recoveries..................................................................................... 9,295 9,646 27,946 12,927 9,934 6,241 4,046 6,633 7,114

Transfers from valuation reserves.........................................

On loans:

20,751 57,145 111,447 55,568 86,574 56,761 60,516 57,284 97,435

Recoveries..................................................................................... 21,183 22,439 20,551 25,684 16,825 16,902 17,913 17,383 17,962

Transfers from valuation reserves......................................... 39,757 42,158 57,607 70,211 51,817 56,610 131,235 62,313 84,001

All o th e r.............................................................................................. 43,063 55,176 64,062 81,114 89,291 73,560 87,295 103,768 99,237

Losses, charge-offs, and transfers to valuation reserves—

total.................................................................................................

On securities:

Losses on securities sold..........................................................

757,432

} 237,480

783,213

93,657

1,361,515

745,081

978,422

219,767

935,461

/ 44,290

836,665

58,939

883,637

49,887

1,017,299

88,397

1,177,540

85,045

Charge-offs prior to sale............................................................ \21,354 12,603 12,827 11,256 9,224

Transfers to valuation reserves...............................................

On loans:

84,996 268,159 168,003 156,232 224,678 95,039 63,530 72,213 63,370

Losses and charge-offs.............................................................. 25,636 25,053 25,459 35,760 31,194 30,107 29,588 32,385 36,188

Transfers to valuation reserves.............................................. 321,870 282,227 318,965 451,667 481,200 528,710 609,059 666,040 846,877

All o th e r.............................................................................................. 87,452 114,117 104,006 114,996 132,745 111,267 118,746 147,008 136,836

Net income before related taxes................................................... 2,372,217 2,973,128 2,372,519 3,387,129 3,401,822 3,260,178 3,379,546 3,431,832 3,543,895

152 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Taxes on net income—total............................................................

Federal..............................................................................................

S tate..................................................................................................

Net income after related taxes......................................................

Dividends and interest on capital—total....................................

Cash dividends declared on common stock...........................

Dividends declared on preferred stock and interest on 

capital notes and debentures.................................................

Net additions to capital from income.........................................

998,397

947,998

50,401

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

1,373,821 1,701,667 1,448,061 2,002,732 1,995,720 2,003,796 2,152,763 2,283,629 2,514,733

678,101

675,867

2,234

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

695,720 975,802 711,675 1,171,186 1,100,667 1,062,607 1,159,389 1,195,319 1,312,384

Memoranda

Recoveries credited to valuation reserves (not included in 

recoveries above):

On securites.............................................................................

On loans.............................................................................

Losses charged to valuation reserves (not included in losses 

above):

On securities.................................................

On loans...............................................................

2,646

50,824

74,529

117,937

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

Average assets and liabilities9

Assets—total...................................................................

Cash and due from banks............................................

United States Governm ent obligations...................................

Other securities.......................................................................

Loans and discounts......................................................

All other assets................................................................

Liabilities and capital—total..........................................................

Total deposits............................................................

Demand, deposits...........................

Time and savinqs deposits...................

Borrowings and other liabilities..........................................

Total capital accounts..............................

214,790,440

45,474,318

57,238,574

16,725,206

91,493,989

3,858,353

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

214,790,440

193,993,484

139,023,597

54,969,887

4,242,293

16,554,663

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

89,470,056

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

168,382,122

119,606,438

11,110,692

26,391,374

357,214,409

315,643,533

178,089,360

137,554,173

12,750,015

28,820,861

Num ber of employees (including building employees), 

December 31:

Active office rs ................................

Other em ployees..................................

91,597

452,218

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

Num ber of banks, December 3 1 ..................... 13,165 13,124 13,114 13,126 13,115 13,124 13,291 13,493 13,547

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.

•n. x£or ^57 through 1960 and for 1964 and 1965, 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 1957-1959 may not add to totals.

Back figures, 1934-1956: See the following Annual Reports: 1956, pp. 116-117; 1950, pp. 250-251; and 1941, pp. 158-159.

INCOME OF INSURED BANKS 153

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Federal Reserve Bank of St. Louis
Table 114. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1957-1965

Income item 1957 1958 1959 1960 1961 1962 1963 1964 1965

Amounts per $100 of current operating revenue

Current operating revenue—total............................................................................................................... $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00

Interest on U. S. Government obligations ........................................................................................ 17.92 18.16 17.91 16.69 17.18 17.13 16.11 14.91 13.23

Interest and dividends on other securities........................................................................................... 5.12 5.91 5.65 5.40 5.68 6.21 6.82 7.22 7.64

61.65 60.48 61.73 63.48 63.31 63.16 64.19 65.13 66.63

Service charges on deposit accounts..................................................................................................... 5.48 5.72 5.50 5.50 5.70 5.58 5.39 5.20 5.01

Other charges, commissions, fees, etc.................................... ..................................................... 2.32 2.25 2.13 2.04 2.02 1.94 1.84 1.87 1.81

Other current operating revenue............................................................................................................. 7.51 7.48 7.08 6.89 >6.11 >5.65 »5.67 15.68

Current operating expenses—to ta l............................................................................................................ 63.59 66.02 64.78 64.65 67.22 70.29 71.91 72.53 74.25

Salaries, wages, and fees ......................................................................................................................... 28.73

(3)

28.80

(3)

27.19 26.62

(3)

226.73 225 . 67 224.81 223.90 222.83

Officer and employee b en e fits................................................................................................................. (3)

16.34

3.41 3.43 3.38 3.27 3.13

Interest on tim e and savings deposits................................................................................................... 14.18 16.24 16.65 19.03

(4)

23.28 25.64

(4)

27.21 30.15

Taxes other than on net incom e.............................................................................................................. 2.56 2.61 2.61 2.66 (4)

(5)

4.55

(4) (4)

Recurring depreciation on banking house, fu rn itu re and fixtu re s ................................................ 1.82 1.98 1.98

(6)

1.98

(6)

(5) (6) (5) (5)

Occupancy expense of bank prem ises—n e t........................................................................................ (6)

(7)

(6) 4.61 4.50 4.46 4.35

Furniture and equ ip m en t.......................................................................................................................... (7) (7) (7) 2.03 2.19 2.31 2.41 2.45

Other current operating expenses.......................................................................................................... 16.30 16.39 16.66 16.74 811.41 *11.17 811.27 811.28 *11.34

Net current operating earnings ................................................................................................................. 36.41 33.98 35.22 35.35 32.78 29.71 28.09 27.47 25.75

Amounts per $100 of total assets9

C urrent operating revenue—total ........................... 3.74 3.72 4.07 4.35 4.35 4.45 4.52 4.62 4.71

C urrent operating expenses—to ta l......................................................................................................... 2.38 2.46 2.64 2.81 2.92 3.13 3.25 3.35 3.50

Net current operating earnings ........................................... 1.36 1.26 1.43 1.54 1.43 1.32 1.27 1.27 1.21

Recoveries, transfers from valuation reserves, and profits—total ............................................ .09 .38 .14 .23 .28 .17 .16 .10 .11

Losses, charge-offs, and transfers to valuation reserves—to ta l.................................................... .35 .34 .57 .40 .37 .30 .30 .32 .33

Net income before related taxes............................................................................................................. 1.10 1.30 1.00 1.37 1.34 1.19 1.13 1.05 .99

Net income after related taxes................................................................................................................ .64 .75 .63 .81 .79 .73 .72 .70 .70

Amounts per $100 of total capital accounts9

Net current operating earnings................................................................................................................ 17.71 16.30 18.17 18.99 17.05 15.99 15.63 15.64 15.03

Recoveries, transfers from valuation reserves, and profits—to ta l................................................ 1.20 4.89 1.76 2.88 3.32 2.06 1.93 1.22 1.35

Losses, charge-offs, and transfers to valuation reserves—to ta l.................................................... 4.58 4.42 7.27 4.90 4.39 3.69 3.64 3.86 4.08

Net income before related taxes............................................................................................................. 14.33 16.77 12.66 16.97 15.98 14.36 13.92 13.00 12.30

Taxes on net incom e................................................................................................................................... 6.03 7.17 4.72 6.94 6.61 5.53 5.06 4.35 3.57

Net income after related ta xe s................................................................................................................ 8.30 9.60 7.94 10.03 9.37 8.83 8.86 8.65 8.73

Cash dividends declared............................................................................................................................ 4.10 4.09 4.14 4.16 4.20 4.15 4.09 4.12 4.17

Net additions to capital from incom e....................................... .......................................................... 4.20 5.51 3.80 5.87 5.17 4.68 4.77 4.53 4.56

Special ratios9

Income on loans per $100 of loans........................................................................................................ 5.42 5.37 5.75 5.96 5.94 6.04 5.98 5.94 5.97

Income on U. S. Government obligations per $100 of U. S. Government obligations.............

Income on other securities per $100 of other securities.................................................................

2.52

2.47

2.48

2.61

2.80

2.69

3.10

2.88

3.08

2.90

3.24

2.95

3.40

2.93

3.65

2.98

3.74

3.09

Service charges per $100 of demand deposits.................................................................................. .32 .34 .36 .39 .43 .44 .46 .46 .47

Interest paid per $100 of tim e and savings deposits....................................................................... 2.08 2.21 2.36 2.56 2.71 3.18 3.31 3.42 3.69

154 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Assets and liabilities per $100 of total assets9

Assets—to tal......................................................... 100.00

21.17

26.65

7.79 

42.60

1.79

100.00

20.48

27.31

8.42

41.89

1.90

100.00 inn nn mn nn inn nn 100.00

16.52

16.63

11.63 

52.54

2.68

Cash and due from banks............................. 19! 73 

26.05 

8 54

IUU.UU

19 98

IUU.UU

18 34

IUU.UU

IQ 07

100.00

17 nc

100.00

United States Government obligations.......... 23] 41 

8 14

lo. UO 1/. Uo

01 >1Q

16.73

Other securities............................................. tH.Ol 

fi R9

l.0• DO

Q QG

Li.HO in ci 18.87

Loans and discounts................................ 43] 72 

1.96

0. DL

AH

y. oy lU .ol 11.17

All other assets.........................

HO. 01

9 ifi

40.41

9 >19

40. OU

O At: 48.51 50.64

L. 10 2.49 2.59

Liabilities and capital—total................ 100.00

90.32

64.73

100.00

90.30

100.00

89 83

mn nn inn nn inn nn 100.00 100.00

88.36

Total deposits........................

IUU.UU

QQ IQ IUU.UU

00 cn

IUU.UU 100.00

Demand deposits............................... 62.98

oy. l y

n'y

00. bu 88.73 88.34

53.38

34.96

88.48

Time and savings deposits................... 25.59

1.97

7.71

27.32

OU. ill QQ 00 58.05 56.10 51.73 49,85

Borrowings and other liabilities. L94 

7.76

2 ] 28

7 89

Zo. ZZ

9 79

30.55

7 OQ

32.63 O OG 36.75

3.41

8.11

38.51

3.57 

8.07 Total capital accounts.................

L. /L

8 no

0. Uo

ft Q7 z. yy 3.54

0 . uy O. 0/ 8.28 8.12

Num ber of banks, December 31. . 13,165 13,124 13,114 13 126 13 115 IQ 19/1 lo ,1Z4 13,291 13,493 13,547

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.”

! |nc uded with “ Other current operating expenses” , except Social Security taxes paid on bank's account which were included with "Taxes other than on net income ” 

nc uded 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.”

! !nc!u^e5 w!£ " I axes othe[ 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.

-*1. * for 1557«t.hurough -960 and for J9641and 1965 averages of amounts reported at beginning, middle, and end of year. For 1961 and 1962, averages of amounts for four consecutive official call date-; heainnina 

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 

Back figures, 1934-1956: See the following Annual Reports: 1956, pp. 118-119; 1950, pp. 252-253; and 1941, pp. 160-161.

INCOME OF INSURED BANKS 155

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Federal Reserve Bank of St. Louis
Table 115. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1965

BY CLASS OF BANK

(Amounts in thousands of dollars)

Income item Total

Members F.R. System Not

members

F.R. System

Operating

throughout

the year

Operating

less than

full yearNational State

Current operating revenue— total.......................................................................... 16,817,187 9,705,224 4,125,743 2,986,220 16,784,582 32,605

Interest on U. S. Government obligations............................................................... 2,224,711 1,210,140 475,901 538,670 2,217,838 6,873

Interest and dividends on other securities.............................................................. 1,285,287 755,865 322,934 206,488 1,283,430 1,857

Interest and discount on loans................................................................................. 10,999,867 6,454,216 2,673,104 1,872,547 10,979,742 20,125

Service charges and fees on loans........................................................................... 204,996 117,584 50,192 37,220 204,583 413

Service charges on deposit accounts....................................................................... 842,775 490,103 163,130 189,542 841,332 1,443

Other charges, commissions, fees, etc.................................................................... 304,276 159,247 - 64,663 80,366 303,558 718

Trust department........................................................................................................ 689,628 356,173 301,418 32,037 688,855 773

Other current operating revenue.............................................................................. 265,647 161,896 74,401 29,350 265,244 403

Current operating expenses— total........................................................................ 12,486,120 7,189,491 3,010,098 2,286,531 12,455,607 30,513

Salaries—officers......................................................................................................... 1,392,765 743,378 302,532 346,855 1,387,912 4,853

Salaries and wages—other employees..................................................................... 2,369,259 1,368,757 605,621 394,881 2,364,536 4,723

Officer and employee benefits.................................................................................. 525,692 308,352 139,292 78,048 524,920 772

Fees paid to directors and committees.................................................................... 77,093 36,372 12,223 28,498 76,926 167

Interest on time and savings deposits..................................................................... 5,070,781 3,002,427 1,211,717 856,637 5,062,273 8,508

Interest on borrowed money..................................................................................... 189,519 103,074 80,621 5,824 189,438 81

Occupancy expense of bank premises—net........................................................... 731,573 409,065 188,753 133,755 729,269 2,304

Furniture and equipment........................................................................................... 411,889 244,743 88,820 78,326 410,715 1,174

Other current operating expenses............................................................................ 1,717,549 973,323 380,519 363,707 1,709,618 7,931

Net current operating earnings............................................................................. 4,331,067 2,515,733 1,115,645 699,689 4,328,975 2,092

Recoveries, transfers from valuation reserves, and profits—total.......................

On securities:

390,368 194,055 135,847 60,466 389,103 1,265

Profits on securities sold or redeemed................................................................. 84,619 50,401 17,055 17,163 84,128 491

Recoveries................................................................................................................ 7,114 1,535 3,598 1,981 7,110 4

Transfers from valuation reserves........................................................................

On loans:

97,435 41,128 49,826 6,481 97,346 89

Recoveries................................................................................................................. 17,962 8,950 1,574 7,438 17,927 35

Transfers from valuation reserves........................................................................ 84,001 35,368 37,737 10,896 83,775 226

All other........................................................................................................................ 99,237 56,673 26,057 16,507 98,817 420

Losses, charge-offs, and transfers to valuation reserves—total...........................

On securities:

1,177,540 676,330 306,043 195,167 1,174,251 3,289

Losses on securities sold........................................................................................ 85,045 49,104 20,874 15,067 84,855 190

Charge-offs prior to sale......................................................................................... 9,224 4,017 833 4,374 9,198 26

Transfers to valuation reserves.. . ........................................................................

On loans:

63,370 41,058 13,118 9,194 63,183 187

Losses and charge-offs........................................................................................... 36,188 16,557 2,745 16,886 35,796 392

Transfers to valuation reserves............................................................................. 846,877 483,442 240,555 122,880 845,592 1,285

All other........................................................................................................................ 136,836 82,152 27,918 26,766 135,627 1,209

Net income before related taxes........................................................................... 3,543,895 2,033,458 945,449 564,988 3,543,827 68

156 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Taxes on net income— total..................................................................................

Federal.........................................................................................................................

1,029,162

927,423

101,739

612,046

552,132

59,914

265,903

234,856

31,047

151,213

140,435

10,778

1,027,492

925,864

101,628

1,670

1,559

111

Net income after related taxes............................................................................. 2,514,733 1,421,412 679,546 413,775 2,516,335 1,602

Dividends and interest on capital— total.............................................................. 1,202,349 717,439 338,148 146,762 1,201,455 894

Cash dividends declared on common stock........................................................... 1,146,186 681,802 321,537 142,847 1,145,346 840

Dividends declared on preferred stock and interest on capital notes and

debentures............................................................................................................... 56,163 35,637 16,611 3,915 56,109 54

Net additions to capital from income................................................................... 1,312,384 703,973 341,398 267,013 1,314,880 2,496

Number of banking employees (exclusive of building employees), December 31:

Active officers............................................................................................................. 130,042 67,215 24,074 38,753 129,463 579

Other employees........................................................................................................ 569,276 326,607 132,711 109,958 567,693 1,583

Memoranda

Recoveries credited to valuation reserves (not included in recoveries above):

On securities ......................................................................... 4,158

124,062

3,115 588 455 4,158

On loans...................................................................................................................... 77,961 22,315 23,786 123,696 366

Losses charged to valuation reserves (not included in losses above):

On securities............................................................................................................... 25,761 14,777 6,561 4,423 25,758 3

On loans....................................................................................................................... 429,490 260,180 86,020 83,290 427,838 1,652

Occupancy expense of bank premises

Occupancy expense of bank premises, net—total................................................ 731,573 409,065 188,753 133,755 729,269 2,304

Rental and other income.............................................................................................. 166,867 109,968 42,276 14,623 166,707 160

Occupancy expense of bank premises, gross—total............................................. 898,440 519,033 231,029 148,378 895,976 2,464

Salaries—building department officers................................................................... 2,716 1,657 774 285 2,713 3

Salaries and wages—building department employees.......................................... 94,688 56,968 24,646 13,074 94,550 138

Building department personnel benefits................................................................ 11,380 7,058 3,413 909 11,369 11

Recurring depreciation.............................................................................................. 160,888 96,423 38,494 25,971 160,435 453

Maintenance and repairs.......................................................................................... 101,322 60,896 22,333 18,093 101,035 287

Insurance and utilities............................................................................................... 155,298 88,274 37,379 29,645 154,807 491

Rents paid................................................................................................................... 243,044 128,882 73,838 40,324 242,151 893

129,104 78,875 30,152 20,077 128,916 188

Number of building employees, December 31:

Officers........................................................................................................................ 444 208 99 137 440 4

Other employees........................................................................................................ 32,401 17,822 6,928 7,651 32,322 79

Number of banks, December 3 1 ................................................................................. 13,547 4,815 1,405 7,327 13,366 181

Note: For average asset and liability data, see Table 109, p. 144.

Back figures, 1934-1964: See Table 113, pp. 152-153; the Annual Report for 1964, pp. 198-199, and earlier reports.

INCOME OF INSURED BANKS

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 116. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1965

BY CLASS OF BANK

Income item

Members F.R. System Not

members

F.R.

System

Total National State

Amounts per $100 of current operating revenue

Current operating revenue— total............................................................................................................................................ $100.00 $100.00 $100.00 $100.00

Interest on U. S. Government obligations...................................................................................................................................... 13.23 12.47 11.53 18.04

Interest and dividends on other securities..................................................................................................................................... 7.64 7.79 7.83 6.91

Income on loans................................................................................................................................................................................. 66.63 67.71 66.01 63.95

Service charges on deposit accounts.............................................................................................................................................. 5.01 5.05 3.95 6.35

Other service charges, commissions, fees, etc.............................................................................................................................. 1.81 1.64 1.57 2.69

Other current operating revenue..................................................................................................................................................... 5.68 5.34 9.11 2.06

Current operating expenses— total......................................................................................................................................... 74.25 74.08 72.96 76.57

Salaries, wages, and fees.................................................................................................................................................................. 22.83 22.14 22.31 25.79

Officer and employee benefits......................................................................................................................................................... 3.13 3.18 3.38 2.61

Interest on time and savings deposits............................................................................................................................................ 30.15 30.94 29.37 28.69

Occupancy expense of bank premises—net................................................................................................................................... 4.35 4.21 4.57 4.48

Furniture and equipment.................................................................................................................................................................. 2.45 2.52 2.15 2.62

Other current operating expenses................................................................................................................................................... 11.34 11.09 11.18 12.38

Net current operating earnings............................................................................................................................................... 25.75 25.92 27.04 23.43

Amounts per $100 of total assets1

Current operating revenue—total ................................................................................................. 4.71 4.63 4.59 5.17

Current operating expenses—total ........................................................................................................... 3.50 3.43 3.35 3.96

Net current operating earnings ........................................................................................................... 1.21 1.20 1.24 1.21

Recoveries, transfers from valuation reserves, and profits—total.................................................................................................. .11 .09 .15 .11

Losses, charge-offs, and transfers to valuation reserves—total..................................................................................................... .33 .32 .34 .34

Net income before related taxes......................................................................................................................................................... .99 .97 1.05 .98

Net income after related taxes............................................................................................................................................................ .70 .68 .76 .72

Memoranda

Recoveries credited to valuation reserves (not included in recoveries above):

On securities ....................................................................................................................................................................... (2)

.03

(2)

.04

(2)

.02

(2)

On loans............................................................................................................................................................................................... .04

Losses charged to valuation reserves (not included in losses above):

On securities ......................................................................................................................................................................... .01 .01 .01 .01

On loans.... .......................................................................................................................................................................... .12 .12 .10 .14

158 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Amounts per $100 of total capital accounts'

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 taxes..........................................................................................................

Cash dividends declared.......................................................................................................

Net additions to capital from income..................................................................................

Memoranda

Recoveries credited to reserve accounts (not included in recoveries above):

On securities.......................................................................................................................

On loans...............................................................................................................................

Losses charged to reserve accounts (not included in losses above):

On securities.......................................................................................................................

On loans...............................................................................................................................

Special ratios1

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.......................................................

Occupancy expense of bank premises per $100 of current operating revenue

Occupancy expense of bank premises, net—total............................................................

Rental and other income......................................................................................................

Occupancy expense of bank premises, gross—total.........................................................

Salaries and wages- building department officers and employees.............................

Building department personnel benefits........................................................................

Recurring depreciation......................................................................................................

Maintenance and repairs...................................................................................................

Insurance and utilities.......................................................................................................

Rents paid............................................................................................................................

Taxes....................................................................................................................................

Number of banks, December 31

1 For average asset and liability data, see Table 109, p. 144.

2 Less than .005.

Back figures, 1934-1964: See Table 114, pp. 154-155; the Annual Report for 1964, pp. 200-201; and earlier reports.

15.03 14.98 15.40 14.63

1.35 1.16 1.87 1.26

4.08 4.03 4.22 4.08

12.30 12.11 13.05 11.81

3.57 3.65 3.67 3.16

8.73 8.46 9.38 8.65

4.17 4.27 4.67 3.07

4.56 4.19 4.71 5.58

.01 .02 .01 .01

.43 .46 .31 .50

.09 .09 .09 .09

1.49 1.55 1.19 1.74

5.97 5.93 5.68 6.61

3.74 3.70 3.67 3.92

3.09 3.11 3.12 3.00

.47 .47 .36 .69

3.69 3.73 3.73 3.48

4.35 4.21 4.57 4.48

.99 1.13 1.03 .49

5.34 5.34 5.60 4.97

.58 .60 .62 .45

.07 .07 .08 .03

.96 .99 .93 .87

.60 .63 .54 .61

.92 .91 .91 .99

1.44 1.33 1.79 1.35

.77 .81 .73 .67

13,547 4,815 1,405 7,327

INCOME OF INSURED BANKS 159

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Federal Reserve Bank of St. Louis
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS

Table 117. INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1965 IN THE UNITED STATES (STATES AND

OTHER AREAS)

Income item All

banks1

Banks with deposits 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; in thousands of dollars)

Current operating revenue— total...................... 16,784,582 21,072 142,465 745,699 1,109,993 1,839,236 1,233,131 1,163,841 3,146,122 7,383,023

Interest on U. S. Government obligations....... 2,217,838 5,339 34,601 165,093 214,626 323,874 204,751 182,389 402,882 684,283

Interest and dividends on other securities.. .. 1,283,430 731 6,664 43,854 80,842 142,208 94,889 90,597 235,451 588,194

Interest and discount on loans......................... 10,979,742 12,540 86,954 461,084 695,545 1,156,029 775,222 739,044 2,065,974 4,987,350

Service charges and fees on loans................... 204,583 103 655 4,527 8,406 19,429 15,321 14,873 42,163 99,106

Service charges on deposit accounts............... 841,332 984 6,713 40,596 69,936 127,757 80,572 69,950 162,026 282,798

Other charges, commissions, fees, etc............ 303,558 900 5,581 23,430 25,625 34,485 23,333 20,273 53,211 116,720

Trust department................................................ 688,855 194 72 701 5,060 18,117 25,600 32,405 148,279 458,427

Other current operating revenue..................... 265,244 281 1,225 6,414 9,953 17,337 13,443 14,310 36,136 166,145

Current operating expenses— total.................... 12,455,607 16,168 107,241 570,040 838,849 1,403,810 942,201 888,751 2,331,393 5,357,154

Salaries—officers................................................ 1,387,912 5,710 31,182 120,691 139,270 189,872 115,703 102,525 239,341 443,618

Salaries and wages—other employees............ 2,364,536 1,854 12,567 79,392 132,114 244,966 176,481 166,875 482,803 1,067,484

Officer and employee benefits.......................... 524,920 429 2,888 16,476 27,363 49,485 35,481 35,934 101,909 254,955

Fees paid to directors and committees........... 76,926 484 2,736 12,324 14,307 16,786 8,002 5,447 9,500 7,340

Interest on time and savings deposits............ 5,062,273 3,569 32,386 201,091 317,965 545,582 364,836 348,359 886,088 2,362,397

Interest on borrowed money............................. 189,438 33 140 696 1,199 2,924 2,946 5,288 28,174 148,038

Occupancy expense of bank premises—net... 729,269 919 5,512 30,678 47,066 82,137 56,525 54,959 138,880 312,593

Furniture and equipment.................................. 410,715 415 2,992 18,186 27,857 47,757 33,169 33,755 94,060 152,524

Other current operating expenses................... 1,709,618 2,755 16,838 90,506 131,708 224,301 149,058 135,609 350,638 608,205

Net current operating earnings......................... 4,328,975 4,904 35,224 175,659 271,144 435,426 290,930 275,090 814,729 2,025,869

Recoveries, transfers from valuation reserves,

and profits— total......................................... 389,103 625 2,773 13,604 20,663 32,119 19,614 21,930 89,798 187,977

On securities:

Profits on securities sold or redeemed........ 84,128 36 346 3,156 6,385 10,111 5,936 6,481 20,588 31,089

Recoveries........................................................ 7,110 35 70 390 857 1,242 543 138 497 3,338

Transfers from valuation reserves................ 97,346 5 63 269 1,326 2,950 2,689 3,579 21,720 64,745

On loans:

Recoveries........................................................ 17,927 421 1,474 5,116 4,710 2,862 894 526 548 1,376

Transfers from valuation reserves................ 83,775 41 316 2,106 3,020 5,171 3,427 3,733 17,731 48,230

All other................................................................ 98,817 87 504 2,567 4,365 9,783 6,125 7,473 28,714 39,199

Losses, charge-offs, and transfers to valuation

reserves— total.............................................

On securities:

Losses on securities sold...............................

Charge-offs prior to sale.................................

Transfers to valuation reserves....................

On loans:

Losses and charge-offs...................................

Transfers to valuation reserves....................

All other................................................................

Net income before related taxes.......................

1,174,251

84,855

9,198

63,183

35,796

845,592

135,627

1,365

31

20

12

813

330

159

7,719

242

80

143

2,806

3,334

1,114

46,726

2,568

1,189

653

12,231

23,512

6,573

72,778

5,091

2,419

1,621

9,134

44,787

9,726

120,131

10,928

1,986

3,590

7,232

80,440

15,955

75,913

7,611

1,198

2,357

1,748

52,993

10,006

73,288

7,162

1,585

4,688

309

50,829

8,715

202,252

18,528

185

16,232

1,332

140,118

25,857

574,079

32,694

536

33,887

191

449,249

57,522

3,543,827 4,164 30,278 142,537 219,029 347,414 234,631 223,732 702,275 1,639,767

160 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Taxes on net income— total

Federal.................................................................

State.....................................................................

1,027,492

925,864

101,628

857

795

62

6,462

5,880

582

34,015

31,264

2,751

59,045

54,927

4,118

100,069

94,343

5,726

71,238

67,276

3,962

69,551

65,740

3,811

211,206

198,252

12,954

475,049

407,387

67,662

Net income after related taxes......................... 2,516,335 3,307 23,816 108,522 159,984 247,345 163,393 154,181 491,069 1,164,718

Dividends and interest on capital— total 1,201,455 1,103 8,116 35,715 55,020 89,405 64,443 66,000

64,326

228,058 653,595

Cash dividends declared on common stock... 1,145,346 1,103 8,111 35,671 54,840 88,808 63,588 219,199 609,700

Dividends declared on preferred stock and

interest on capital notes and debentures 56,109 5 44 180 597 855 1,674 8,859 43,895

Net additions to capital from income............... 1,314,880 2,204 15,700 72,807 104,964 157,940 98,950 88,181 263,011 511,123

Number of banking employees (exclusive of

building employees), December 31:

Active officers..................................................... 129,463 1,195 4,993 15,574 15,693 18,955 10,644 8,628 19,809 33,972

Other employees................................................ 567,693 814 4,544 24,794 38,263 68,243 49,016 42,746 117,620 221,653

Memoranda

Recoveries credited to valuation reserves (not

included in recoveries above):

On securities....................................................... 4,158 7 109 91 278 138 301 570 2,664

On loans............................................................... 123,696 77 881 6,567 11,279 19,215 11,496 10,104 21,476 42,601

Losses charged to valuation reserves (not included in losses above):

On securities....................................................... 25,758 1 1 175 293 1,326 1,050 1,991 7,436 13,485

On loans.............................................................. 427,838 208 2,186 16,664 31,798 57,698 36,813 35,408 77,622 169,441

Occupancy expense of bank premises

Occupancy expense of bank premises, n e ttotal ............................................................. 729,269 919 5,512 30,678 47,066 82,137 56,525 54,959 138,880

51,919

312,593

Rental and other income...................................... 166,707 52 385 2,519 4,092 9,237 10,558 14,676 73,269

Occupancy expense of bank premises, gross—

total............................................................. 895,976 971 5,897 33,197 51,158 91,374 67,083 69,635 190,799 385,862

Salaries—building department officers........... 2,713 1 8 31 32 82 92 220 757 1,490

Salaries and wages—building department

employees........................................................ 94,550 41 410 3,070 5,308 9,759 7,616 7,900 24,050 36,396

Building department personnel benefits........ 11,369 1 8 133 292 737 731 821 2,968 5,678

Recurring depreciation...................................... 160,435 100 1,006 6,656 10,891 19,215 12,525 12,156 31,820 66,066

Maintenance and repairs.................................. 101,035 146 892 4,161 6,101 11,255 8,828 8,823 21,999 38,830

Insurance and utilities....................................... 154,807 410 2,055 8,862 11,560 17,486 11,177 10,559 28,007 64,691

Rents paid........................................................... 242,151 101 604 5,004 8,705 18,135 16,099 18,971 54,797 119,735

Taxes.................................................................... 128,916 171 914 5,280 8,269 14,705 10,015 10,185 26,401 52,976

Number of building employees, December 31:

Officers................................................................ 440 8 34 45 23 61 33 27 66 143

Other employees................................................. 32,322 131 842 3,284 3,197 3,981 2,771 2,774 7,139 8,203

Number of banks, December 3 1 ......................... 13,366 521 1,790 4,301 3,046 2,295 691 330 302 90

1 This group of banks is the same as the group shown in Table 115 under the heading ‘‘Operating throughout the year”.

2 For asset and liability data, see Table 110, p. 145.

Back figures, 1941-1964: See the Annual Report for 1964, pp. 202-203, and earlier reports.

INCOME OF INSURED BANKS 161

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Federal Reserve Bank of St. Louis
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS

Table 118. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1965 IN THE UNITED STATES (STATES

AND OTHER AREAS)

All

banks1

Banks with deposits of— 2

Income item 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— total...................... $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00

Interest on U. S. Government obligations....... 13.21 25.34 24.29 22.14 19.34 17.61 16.60 15.67 12.81 9.27

Interest and dividends on other securities.... 7.65 3.47 4.68 5.88 7.28 7.73 7.70 7.79 7.48 7.97

Income on loans................................................. 66.64 60.00 61.49 62.44 63.42 63.91 64.11 64.78 67.01 68.89

Service charges on deposit accounts.............. 5.01 4.67 4.71 5.44 6.30 6.95 6.53 6.01 5.15 3.83

Other service charges, commissions, fees, etc. 1.81 4.27 3.92 3.14 2.31 1.87 1.89 1.74 1.69 1.58

Other current operating revenue..................... 5.68 2.25 .91 .96 1.35 1.93 3.17 4.01 5.86 8.46

Current operating expenses— total.................... 74.21 76.73 75.28 76.44 75.57 76.33 76.41 76.36 74.10 72.56

Salaries, wages, and fees.................................. 22.81 38.19 32.63 28.48 25.74 24.56 24.34 23.61 23.26 20.57

Officer and employee benefits.......................... 3.13 2.04 2.03 2.21 2.46 2.69 2.88 3.09 3.24 3.45

Interest on time and savings deposits............ 30.16 16.94 22.73 26.97 28.65 29.66 29.59 29.93 28.16 32.00

Occupancy expense of bank premises—net... 4.35 4.36 3.87 4.11 4.24 4.47 4.58 4.72 4.41 4.23

Furniture and equipment.................................. 2.45 1.97 2.10 2.44 2.51 2.60 2.69 2.90 2.99 2.07

Other current operating expenses................... 11.31 13.23 11.92 12.23 11.97 12.35 12.33 12.11 12.04 10.24

Net current operating earnings......................... 25.79 23.27 24.72 23.56 24.43 23.67 23.59 23.64 25.90 27.44

Amounts per $100 of total assets2

Current operating revenue—total........................ 4.49 4.71 4.66 4.63 4.67 4.73 4.72 4.66 4.57 4.30

Current operating expenses—total...................... 3.33 3.61 3.51 3.54 3.53 3.61 3.61 3.56 3.39 3.12

Net current operating earnings............................ 1.16 1.10 1.15 1.09 1.14 1.12 1.11 1.10 1.18 1.18

Recoveries, transfers from valuation reserves,

and profits—total............................................. .10 .14 .09 .08 .09 .08 .08 .09 .13 .11

Losses, charge-offs, and transfers to valuation

reserves—total................................................. .31 .31 .25 .29 .31 .31 .29 .29 .29 .34

Net income before related taxes.......................... .95 .93 .99 .88 .92 .89 .90 .90 1.02 .95

Net income after related taxes............................. .67 .74 .78 .67 .67 .64 .63 .62 .71 .68

Memoranda

Recoveries credited to valuation reserves (not

included in recoveries above):

On securities........................................................ (3)

.03

(3)

.03

(3)

.04

(3)

.05

(3)

.05

(3)

.04

(3)

.04

(3)

.03

(3)

On loans............................................................... .02 .02

Losses charged to valuation reserves (not included in losses above):

On securities........................................................ .01 (3) (3) (3) (3) (3) (3) .01 .01 .01

On loans............................................................... .11 .05 .07 .10 .13 .15 .14 .14 .11 .10

162 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Amounts per $100 of total

capital accounts2

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 taxes..........................................

Cash dividends declared.......................................

Net additions to capital from income.................

14.54

1.31

3.95

11.90

3.45

8.45

4.03

4.42

8.68

1.10

2.41

7.37

1.52

5.85

1.95

3.90

10.64

.84

2.33

9.15

1.95

7.20

2.46

4.74

11.55

.89

3.07

9.37

2.23

7.14

2.35

4.79

13.65

1.04

3.66

11.03

2.98

8.05

2.77

5.28

14.56

1.07

4.01

11.62

3.35

8.27

2.99

5.28

15.06

1.01

3.93

12.14

3.68

8.46

3.34

5.12

14.83

1.18

3.95

12.06

3.75

8.31

3.56

4.75

15.41

1.70

3.82

13.29

4.00

9.29

4.31

4.98

14.67

1.36

4.16

11.87

3.44

8.43

4.73

3.70

Memoranda

Recoveries credited to reserve accounts (not

included in recoveries above):

On securities....................................................... .01 0)

.27

.01 O

.57

.01 .01 .02 .01 .02

On loans............................................................... .42 .14 .43 .64 .59 .54 .41 .31

Losses charged to reserve accounts (not included in losses above):

On securities....................................................... .09 C) (:i) .01 .01 .04 .05 .11 .14 .10

On loans............................................................... 1.44 .37 .66 1.10 1.60 1.93 1.91 1.91 1.47 1.23

Special ratios2

Income on loans per $100 of loans.................... 5.59 6.65 6.41 6.30 6.28 6.14 5.95 5.80 5.66 5.22

Income on U. S. Government obligations per

$100 of U. S. Government obligations......... 3.76 3.78 3.66 3.70 3.70 3.79 3.85 3.91 3.84 3.67

Income on other securities per $100 of other

securities.......................................................... 2.89 2.72 2.84 2.63 2.68 2.68 2.68 2.78 2.85 3.09

Service charges per $100 of demand deposits... .46 .36 .40 .51 .61 .71 .65 .58 .46 .34

Interest paid per $100 of time and savings

deposits............................................................ 3.44 3.06 3.09 3.10 3.14 3.17 3.22 3.30 3.38 3.69

Occupancy expense of bank premises

per $100 of current operating

revenue

Occupancy expense of bank premises, n e ttotal ............................................................. 4.35 4.36 3.87 4.11 4.24 4.47 4.58 4.72 4.41 4.23

Rental and other income...................................... .99 .25 .27 .34 .37 .50 .86 1.26 1.65 1.00

Occupancy expense of bank premises, grosstotal ............................................................. 5.34 4.61 4.14 4.45 4.61 4.97 5.44 5.98 6.06 5.23

Salaries and wages—building department

officers and employees.................................. .58 .20 .29 .41 .48 .54 .62 .70 .79 .51

Building department personnel benefits........ .07 .01 .01 .02 .03 .04 .06 .07 .09 .08

Recurring depreciation...................................... .96 .47 .71 .89 .98 1.04 1.02 1.04 1.01 .89

Maintenance and repairs.................................. .60 .69 .63 .56 .55 .61 .72 .76 .70 .53

Insurance and utilities....................................... .92 1.95 1.44 1.19 1.04 .95 .91 .91 .89 .88

Rents paid........................................................... 1.44 .48 .42 .67 .78 .99 1.30 1.63 1.74 1.62

Taxes................................................................ .77 .81 .64 .71 .75 .80 .81 .87 .84 .72

Number of banks, December 31 ......................... 13,366 521 1,790 4,301 3,046 2,295 691 330 302 90

1 This group of banks is the same as the group shown in Table 115 under the heading "Operating throughout the year” . These ratios differ slightly from the ratios for all insured commercial banks shown in Tables 

114 and 116.

2 For asset and liability data, see Table 110, p. 145.

3 Less than .005.

Back figures, 1941-1964: See the Annual Report for 1964, pp. 204-205, and earlier reports.

INCOME OF INSURED BANKS 163

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Federal Reserve Bank of St. Louis
Table 119. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), BY STATE, 1965

(Amounts in thousands of dollars)

Income item

Total

United

States

Other areas 50 States

and

D.C.

Alabama Alaska Arizona Arkansas California Colorado ConnectiPuerto cut

Rico

Virgin

Islands

Current operating revenue— total.................. 16,817,187 48,714 2,040 16,766,433 163,266 22,402 128,236 96,072 2,049,372 161,549 196,877

Interest on U. S. Government obligations... 2,224,711 3,526 293 2,220,892 26,331 3,216 9,961 12,750 194,449 20,653 17,226

Interest and dividends on other securities.. 1,285,287 1,535 27 1,283,725 13,101 1,379 7,534 9,142 127,360 7,815 13,966

Interest and discount on loans.................... 10,999,867 35,254 1,417 10,963,196 103,606 13,695 90,293 63,822 1,407,004 104,885 128,832

Service charges and fees on loans.............. 204,996 2,852 156 201,988 1,365 1,411 3,695 297 51,372 2,391 1,832

Service charges on deposit accounts.......... 842,775 1,641 29 841,105 10,789 1,743 9,735 5,518 137,125 13,276 12,507

Other charges, commissions, fees, etc....... 304,276 3,143 75 301,058 3,248 674 2,411 2,656 33,385 3,222 3,025

689,628 26 689,602 3,517 85 3,170 992 58,773 6,454 17,119

Other current operating revenue................. 265,647 737 43 264,867 1,309 199 1,437 865 39,904 2,853 2,370

Current operating expenses— total................ 12,486,120 39,279 1,537 12,445,304 116,094 16,355 103,228 69,651 1,614,549 126,730 145,160

Salaries—officers............................................ 1,392,765 4,411 172 1,388,182 16,727 2,510 11,393 11,595 156,804 16,788 18,712

Salaries and wages—other employees........ 2,369,259 9,064 363 2,359,832 22,451 3,895 22,117 12,080 312,207 23,821 33,806

Officer and employee benefits..................... 525,692 1,515 56 524,121 4,442 653 3,971 2,516 61,152 4,254 8,001

Fees paid to directors and committees ... 77,093 190 9 76,894 985 51 164 1,101 1,640 1,131 891

Interest on time and savings deposits........ 5,070,781 12,488 604 5,057,689 42,236 4,888 38,981 23,094 755,078 44,699 44,112

Interest on borrowed money........................ 189,519 321 22 189,176 128 35 378 263 20,744 1,145 759

Occupancy expense of bank premises—net 731,573 2,170 42 729,361 5,488 1,115 7,330 4,189 92,967 9,297 10,034

Furniture and equipment.............................. 411,889 1,256 40 410,593 4,554 759 4,489 2,596 51,002 5,680 6,607

Other current operating expenses............... 1,717,549 7,864 229 1,709,456 19,083 2,449 14,405 12,217 162,955 19,915 22,238

Net current operating earnings..................... 4,331,067 9,435 503 4,321,129 47,172 6,047 25,008 26,421 434,823 34,819 51,717

Recoveries, transfers from valuation reserves , and profits— total........................ 390,368 1,665 8 388,695 2,433 456 4,026 1,367 49,125 4,128 7,140

On securities:

Profits on securities sold or redeemed... 84,619 467 84,152 1,504 373 690 548 10,494 710 1,056

Recoveries...................... ................. 7,114 7,114 11 64 20 3,020 70 3

Transfers from valuation reserves 97,435 97,435 46 1,819 50 11,006 383 484

On loans:

Recoveries................................................... 17,962 123 17,839 277 16 424 694 375 8

Transfers from valuation reserves........... 84,001 35 83,966 222 208 97 16,922 144 257

All other........................................................... 99,237 1,040 8 98,189 373 83 1,229 228 6,989 2,446 5,332

Losses, charge-offs, and transfers to valuation reserves—total................................ 1,177,540 2,637 53 1,174,850 9,661 1,369 10,935 5,945 135,357 11,252 15,648

On securities:

Losses on securities sold........................... 85,045 201 84,844 306 14 103 307 5,957 351 994

Charge-offs prior to sale............................ 9,224 9,224 148 98 234 102 5

Transfers to valuation reserves................ 63,370 5 63,365 186 6 686 127 8,927 257 365

On loans:

Losses and charge-offs.............................. 36,188 817 35,371 536 42 845 1,415 1,488 13

Transfers to valuation reserves................ 846,877 1,405 48 845,424 7,387 1,148 9,286 3,513 101,849 8,004 9,664

All other........................................................... 136,836 209 5 136,622 1,098 201 818 1,055 16,975 1,050 4,607

Net income before related taxes................... 3,543,895 8,463 458 3,534,974 39,944 5,134 18,099 21,843 348,591 27,695 43,209

164 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Taxes on net income—total.............................

Federal............................................................

State................................................................

Net income after related taxes.......................

Dividends and interest on capital—total........

Cash dividends declared on common stock

Dividends declared on preferred stock and

interest on capital notes and debentures

Net additions to capital from income............

Number of banking employees (exclusive of

building employees), December 31:

Active officers...............................................

Other employees..........................................

Memoranda

Recoveries credited to valuation reserves

(not included in recoveries above):

On securities.................................................

On loans.........................................................

Losses charged to valuation reserves (not

included in losses above):

On securities.................................................

On loans.........................................................

1,029,162

927,423

101,739

2,514,733

1,202,349

1,146,186

56,163

1,312,384

827

562

265

7,636

2,840

2,582

258

4,796

257

257

201

201

1,028,078

926,604

101,474

2,506,896

1,199,509

1,143,604

55,905

1,307,387

11,727

10,128

1,599

28,217

10.426

10.426

17,791

1,782

1,778

4

3,352

483

483

4,724

4,349

375

‘13,375

8,191

6,788

1,403

5,184

5.083

5.083

16,760

5,003

4,964

39

11,757

111,123

79,758

31,365

237,468

140,095

125,289

14,806

97,373

8,909

7,359

1,550

18,786

9,522

9,206

316

9,264

13,544

9,902

3,642

29,665

14,419

14,411

15,246

130,042

569,276

526

2,540

129,503

566,644

1,745

6,553

168

754

1,063

5,388

1,363

3,506

14,703

66,642

1,575

5,777

4,158

124,062

25,761

429,490 681

4,158

124,003

25,761

428,757

7

1,773

7

5,531

765 1,585

1,469 8,153

5

845

1

2,452

205

14,099

3,415

66,940

1,987

85

7,011

1,529

7,767

902

33

3,946

Occupancy expense of

bank premises

Occupancy expense of bank premises, n e ttotal.............................................................

Rental and other income................................

Occupancy expense of bank premises,

gross—total................................................

Salaries—building department officers__

Salaries and wages—building department

employees..................................................

Building department personnel benefits..

Recurring depreciation................................

Maintenance and repairs............................

Insurance and utilities.................................

Rents paid.....................................................

Taxes..............................................................

Number of building employees, December

31:

Officers..........................................................

Other employees..........................................

Number of banks, December 3 1 ...................

731,573

166,867

898,440

2,716

94,688

11,380

160,888

101,322

155,298

243,044

129,104

2,170

399

177

23

309

419

389

854

48

729,361

166,462

895,823

2,706

94,511

11,357

160,573

100,900

154,904

242,158

128,714

5,488

1,037

6,525

23

817

80

1,266

702

1,294

2,056

287

1,115

134

1,249

47

3

228

191

394

257

129

7,330

1,166

8,496

52

521

71

1,423

644

1,887

3,190

708

4,189

579

4,768

7

599

59

1,268

456

982

728

669

92,967

10,308

103,275

319

4,414

686

12,821

15,177

15,110

42,640

12,108

9,297

3,080

12,377

27

1,125

103

1,407

1,469

1,672

5,210

1,364

444

32,401

443

32,343

12

408

4

135

2

316

23

963

6

354

13,547 13,539 263 242 193 210

10,034

1,567

11,601

1,209

123

1,978

1,135

2,217

3,348

1,583

1

324

Note: For average asset and liability data by State, see Table 111, pp. 146-147.

Back figures, 1946-1964: See the Annual Report for 1964, pp. 206-215, and earlier reports.

INCOME OF INSURED BANKS 165

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
(Amounts in thousands of dollars)

Table 119. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

BY STATE, 1965— CONTINUED

Income item Delaware

District

of

Columbia

Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky

Current operating revenue—to tal...................... 54,188 111,343 380,657 260,101 59,962 51,348 1,197,465 338,519 213,914 165,578 157,596

Interest on U. S. Government obligations... 8,491 20,360 70,530 31,299 6,032 6,356 208,105 70,786 41,924 33,003 30,478

Interest and dividends on other securities.. 4,481 3,176 26,424 13,900 3,353 2,834 110,219 19,708 15,133 13,639 10,466

Interest and discount on loans.................... 28,601 71,244 221,141 168,065 42,828 34,578 730,293 209,691 135,545 101,233 99,459

Service charges and fees on loans.............. 825 1,611 6,510 5,807 2,470 1,222 9,532 2,617 772 754 1,459

Service charges on deposit accounts......... 1,381 6,606 30,184 19,603 2,240 4,676 39,235 15,454 11,082 10,823 6,222

Other charges, commissions, fees, etc....... 566 1,190 8,127 10,237 2,328 900 14,328 7,470 4,446 2,963 1,763

8,422 6,384 11,787 8,783 357 62,171 9,229 3,135 1,645 6,092

Other current operating revenue................. 1,421 772 5,954 2,407 711 425 23,582 3,564 1,877 1,518 1,657

Current operating expenses—total................... 31,086 75,889 294,154 192,220 45,262 37,040 883,777 250,178 157,351 115,569 108,944

Salaries—officers............................................ 4,916 8,591 37,398 25,840 4,583 5,262 90,447 33,280 30,714 23,490 17,304

Salaries and wages—other employees........ 8,224 16,131 60,687 39,528 9,852 7,279 146,588 46,880 24,388 18,664 20,709

Officer and employee benefits..................... 1,583 2,349 10,868 9,597 2,826 1,729 34,956 9,644 5,299 3,947 4,295

Fees paid to directors and committees .... 271 574 2,725 1,982 228 200 5,569 2,526 1,351 1,574 1,468

Interest on time and savings deposits........ 7,452 27,394 98,501 58,076 17,151 13,660 406,591 88,204 57,196 38,900 35,232

Interest on borrowed money........................ 109 698 1,789 1,710 131 263 18,926 3,387 388 566 408

Occupancy expense of bank premises—net. 1,939 5,243 17,630 13,311 2,586 1,901 42,088 14,808 8,324 6,280 6,427

Furniture and equipment.............................. 1,767 2,908 14,686 7,567 2,122 1,548 25,734 8,905 5,426 4,148 3,974

Other current operating expenses............... 4,825 12,001 49,870 34,609 5,783 5,198 112,878 42,544 24,265 18,000 19,127

Net current operating earnings......................... 23,102 35,454 86,503 67,881 14,700 14,308 313,688 88,341 56,563 50,009 48,652

Recoveries, transfers from valuation reserves, and profits—to tal............................. 1,919 998 5,628 3,538 413 389 39,171 12,289 2,963 3,039 6,913

On securities:

Profits on securities sold or redeemed... 893 282 971 1,451 49 27 10,730 1,732 1,185 649 1,412

Recoveries ............. 154 71 137 5 375 71 26 190 76

Transfers from valuation reserves 25 290 90 212 12,710 5,185 74 111 420

On loans:

Recoveries................................................... 33 117 295 276 4 59 684 271 513 931 432

Transfers from valuation reserves 598 26 1,246 403 6,172 1,145 584 303 2,664

All other........................................................... 216 573 2,755 1,181 360 86 8,500 3,885 581 855 1,909

Losses, charge-offs, and transfers to valuation reserves—total..................................... 5,956 5,454 30,282 18,294 3,033 1,953 75,433 28,158 10,732 12,152 11,309

On securities:

Losses on securities sold........................... 95 502 1,790 997 633 527 9,288 3,395 1,273 588 387

Charge-offs prior to sale 1 14 229 62 2 746 271 273 342 232

Transfers to valuation reserves 367 196 337 19 8,184 3,840 237 147 1,043

On loans:

Losses and charge-offs 50 259 2,164 442 138 1,363 448 586 2,482 820

Transfers to valuation reserves................ 3,255 4,020 22,628 13,688 2,099 1,136 45,557 15,667 6,302 6,361 6,900

All other........................................................... 2,188 659 3,275 2,768 301 131 10,295 4,537 2,061 2,232 1,927

Net income before related taxes...................... 19,065 30,998 61,849 53,125 12,080 12,744 277,426 72,472 48,794 40,896 44,256

166 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Taxes on net income—total................................

Federal.............................................................

State

7,691

7,222

469

13.295

13.295

18.713

18.713

15.501

15.501

3,729

3,426

303

4,841

3,972

869

79.773

79.773

22.641

22.641

13.600

13.600

11,220

10,223

997

14.624

14.624

Net income after related taxes......................... 11,374 17,703 43,136 37,624 8,351 7,903 197,653 49,831 35,194 29,676 29,632

Dividends and interest on capital—to tal......... 6,821 8,411 17,183 16,328 5,417 3,575 70,653 17,210 12,261 9,939 10,431

Cash dividends declared on common stock. 6,821 8,339 16,947 14,807 4,358 3,495 70,349 16,727 12,246 9,917 10,428

Dividends declared on preferred stock and

interest on capital notes and debentures 72 236 1,521 1,059 80 304 483 15 22 3

Net additions to capital from income............. 4,553 9,292 25,953 21,296 2,934 4,328 127,000 32,621 22,933 19,737 19,201

Number of banking employees (exclusive of

building employees), December 31:

Active officers................................................. 413 623 3,765 2,624 403 490 7,585 3,266 3,163 2,578 2,071

Other employees............................................ 2,109 3,552 16,627 10,155 2,320 1,990 33,453 12,569 7,082 5,363 5,934

Memoranda

Recoveries credited to valuation reserves

(not included in recoveries above):

50 26 12 2,269 70 9 10 73

On loans.......................................................... 180 374 4,568 2,086 281 179 7,444 3,199 1,472 1,386 1,207

Losses charged to valuation reserves (not

included in losses above):

On securities ................................... 735 112 51 12 2,806 328 99 5 105

On loans.......................................................... 226 2,385 19,351 5,370 1,447 683 25,927 9,334 3,276 4,271 3,004

Occupancy expense of

bank premises

Occupancy expense of bank premises, n e ttotal.................................................................... 1,939 5,243 17,630 13,311 2,586 1,901 42,088 14,808 8,324 6,280 6,427

Rental and other income.................................. 250 994 5,166 2,287 758 366 8,603 3,488 1,347 1,339 1,265

Occupancy expense of bank premises,

gross—total...................................................... 2,189 6,237 22,796 15,598 3,344 2,267 50,691 18,296 9,671 7,619 7,692

Salaries—building department officers....... 8 94 32 45 1 163 34 16 31 4

Salaries and wages—building department

employees................................................... 203 1,102 2,164 1,178 205 222 8,021 2,748 1,316 982 1,102

Building department personnel benefits. .. 28 95 211 126 50 13 787 202 93 73 90

Recurring depreciation.................................. 382 866 4,118 2,231 446 572 8,827 3,686 1,759 1,519 1,442

Maintenance and repairs.............................. 216 722 2,699 2,083 472 162 6,135 2,502 1,082 999 1,032

Insurance and utilities.................................. 325 685 4,595 2,402 604 432 7,395 3,276 1,939 1,547 1,539

Rents paid...................................................... 927 2,096 4,683 4,636 1,249 531 12,053 3,678 2,111 1,477 1,531

Taxes............................................................... 108 663 4,232 2,910 273 334 7,310 2,170 1,355 991 952

Number of building employees, December

O 1 Q 1 •.

Officers............................................................ 1 25 12 3 3 21 5 14 9 3

Other employees............................................ 73 312 713 487 94 89 2,165 1,059 812 507 557

Number of banks, December 3 1 .................... 20 15 440 387 7 25 1,044 418 659 596 340

Note: For average asset and liability data by State, see Table 111, pp. 146-147.

Back figures, 1946-1964: See the Annual Report for 1964, pp. 206-215, and earlier reports.

INCOME OF INSURED BANKS 167

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 119. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

BY STATE, 1965— CONTINUED

(Amounts in thousands of dollars)

Income item Louisiana Maine Maryland Massachusetts Michigan Minnesota

Mississippi Missouri Montana Nebraska Nevada

Current operating revenue—total...................... 199,031 47,501 180,619 396,741 706,651 312,530 102,736 391,458 60,336 116,202 42,537

Interest on U. S. Government obligations... 35,831 5,841 26,340 38,731 112,612 52,633 15,284 68,142 9,407 19,003 5,530

Interest and dividends on other securities.. 15,093 2,780 11,632 20,200 57,847 23,430 11,083 31,793 3,755 7,084 2,282

Interest and discount on loans.................... 124,750 32,492 116,851 260,617 462,483 188,158 62,864 251,099 39,000 76,743 28,310

Service charges and fees on loans.............. 1,402 459 3,411 3,846 7,536 2,291 395 2,144 1,022 460 1,065

Service charges on deposit accounts.......... 11,818 2,942 13,050 25,016 28,874 17,838 6,468 15,948 4,143 6,707 2,932

Other charges, commissions, fees, etc....... 6,355 569 3,452 12,819 11,055 15,941 4,404 5,894 1,761 2,298 641

Trust department........................................... 1,498 1,982 3,925 26,431 20,301 9,526 964 11,409 585 2,487 1,216

Other current operating revenue................. 2,284 436 1,958 9,081 5,943 2,713 1,274 5,029 663 1,420 561

Current operating expenses—total................... 144,017 35,670 130,440 269,493 565,131 237,249 73,866 278,732 45,159 83,069

17,666

30,778

Salaries—officers............................................ 18,469 4,340 13,124 33,704 42,871 35,616 11,787 36,115 7,331 3,941

Salaries and wages—other employees........ 27,593 7,647 29,568 69,780 98,234 38,105 13,382 51,691 7,072 14,132 6,559

Officer and employee benefits..................... 5,508 1,293 5,606 15,263 21,457 9,327 3,269 9,518 1,999 3,651 953

Fees paid to directors and committees 1,929 391 1,082 1,553 2,439 2,207 1,022 2,694 380 1,166 89

Interest on time and savings deposits........ 44,017 12,222 42,588 64,047 282,838 94,278 23,310 107,167 15,681 23,453 11,154

Interest on borrowed money........................ 2,265 209 1,628 6,810 3,087 3,694 1,135 3,993 301 1,089 50

Occupancy expense of bank premises—net. 10,226 2,469 9,086 20,681 28,779 12,228 3,330 15,080 2,112 4,454 2,342

Furniture and equipment.............................. 5,234 1,257 5,634 12,125 15,179 8,140 2,677 9,523 1,594 3,682 1,320

Other current operating expenses............... 28,776 5,842 22,124 45,530 70,247 33,654 13,954 42,951 8,689 13,776 4,37.0

Net current operating earnings....................... 55,014 11,831 50,179 127,248 141,520 75,281 28,870 112,726 15,177 33,133 11,759

Recoveries, transfers from valuation reserves, and profits—to ta l............................. 4,420 543 2,637 10,817 18,947 5,520 3,517 12,959 3,369 2,308 4,197

On securities:

Profits on securities sold or redeemed... 1,808 92 335 1,041 2,028 759 561 2,468 222 504 50

Recoveries................................................... 67 158 36 193 75 234 447 82 122 160

Transfers from valuation reserves........... 727 75 162 3,623 2,983 324 708 3,190 809 431 3,283

On loans:

Recoveries 437 51 138 170 229 586 421 609 680 200

Transfers from valuation reserves 695 19 329 1,232

4,558

1,143

12,489

2,364

1,253

541 4,627

1,983

231 405

All other........................................................... 686 148 1,637 839 1,305 608 864

Losses, charge-offs, and transfers to valuation reserves—to tal..................................... 15,610 3,451 12,845 32,277 51,524 17,250 10,715 31,304 7,087 7,305 3,523

On securities:

Losses on securities sold......................... 422 772 1,393

66

5,530

28

4,253

114

1,455

344

489 3,131

1,920

1,561

248 642

Charge-offs prior to sale............................ 274 51 939 62 255

Transfers to valuation reserves................ 1,587 62 749 1,507 5,596 82 2,163 565 188 1,298

On loans:

Losses and charge-offs.............................. 702 21 207 293 603 963 666 1,467

19,564

369 352

Transfers to valuation reserves................ 10,599 1,925 8,612 17,838 34,469 12,598 5,105 5,261 4,941 1,896

All other........................................................... 2,026 620 1,818 7,081 6,489 1,808 1,353 3,661 582 927 329

Net income before related taxes...................... 43,824 8,923 39,971 105,788 108,943 63,551 21,672 94,381 11,459 28,136 12,433

168 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Taxes on net income—to tal................................

Federal............................................................

State................................................................

14.052

14.052

2.774

2.774

13.159

13.159

41,881

34,258

7,623

19.351

19.351

21,482

15,934

5,548

5.369

5.369

29,788

28,041

1,747

4,053

3,692

361

oo oo

8 8 oo oo

3.237

3.237

Net income after related taxes.......................... 29,772 6,149 26,812 63,907 89,592 42,069 16,303 64,593 7,406 20,038 9,196

Dividends and interest on capital—total.........

Cash dividends declared on common stock.

Dividends declared on preferred stock and

interest on capital notes and debentures.

11,693

11,498

195

2,945

2,940

5

11,804

11,577

227

34,519

34,219

300

38,454

35,910

2,544

18,437

18,198

239

6,584

6,556

28

26,668

25,386

1,282

4.038

4.038

7,467

7,462

5

3,162

3,100

62

Net additions to capital from income............. 18,079 3,204 15,008 29,388 51,138 23,632 9,719 37,925 3,368 12,571 6,034

Number of banking employees (exclusive of

building employees), December 31:

Active officers.................................................

Other employees............................................

1,748

7,190

478

2,196

1,325

7,800

2,696

16,651

3,672

23,932

3,679

10,207

1,263

3,839

3,774

13,879

736

1,935

1,891

3,994

395

1,519

Memoranda

Recoveries credited to valuation reserves

(not included in recoveries above):

On securities................................................... 15 27 17 5 7 24

2,254

749

8,508

28

423

5

4,892

10

1,590

163

3,684

52

265

12

1,299

On loans..........................................................

Losses charged to valuation reserves (not

included in losses above):

On securities...................................................

1,459

1'6

554

47

794

140

2,954

1,061

9,790

6,953

83

16,235

1,813 1,225

70

On loans.......................................................... 3,830 1,222 2,631 3,758 2,820

Occupancy expense of

bank premises

Occupancy expense of bank premises, n e t -

total....................................................................

Rental and other income..................................

Occupancy expense of bank premises,

gross—total......................................................

Salaries—building department officers.......

10,226

2,628

12,854

46

2,469

562

3,031

9,086

1,277

10,363

19

20,681

3,357

24,038

149

28,779

3,301

32,080

145

12,228

4,637

16,865

23

3,330

1,884

5,214

15,080

3,013

18,093

46

2,112

711

2,823

4,454

1,250

5,704

16

2,342

500

2,842

10

328

20

639

403

497

607

338

Salaries and wages—building department

employees...................................................

Building department personnel benefits .

Recurring depreciation.................................

Maintenance and repairs..............................

Insurance and utilities..................................

Rents paid.......................................................

Taxes...............................................................

1,900

143

2,166

1,291

1,840

2,542

2,926

458

33

559

283

493

775

430

814

100

1,839

1,584

1,655

3,279

1,073

2,565

418

3,924

2,477

4,535

4,810

5,160

4,129

555

6,102

4,232

5,786

6,921

4,210

1,324

95

2,411

1,809

3,431

5,418

2,354

501

52

870

802

1,076

733

1,180

2,211

268

4,595

2,579

3,337

3,295

1,762

384

40

574

289

486

459

591

734

74

942

640

986

1,525

787

Number of building employees, December

31:

Officers......................................................... 5 3 27 17 8 1 17

868

7

430

1

Other employees............................................ 681 237 302 853 1,376 669 253 181 76

Number of banks, December 3 1 .................... 213 39 121 156 352 717 196 644 129 430 9

Note: For average asset and liability data by State, see Table 111, pp. 146-147.

Back figures, 1946-1964: See the Annual Report for 1964, pp. 206-215, and earlier reports.

INCOME OF INSURED BANKS 169

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 119. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

BY STATE, 1965— CONTINUED

(Amounts in thousands of dollars)

Income item New

Hampshire

New

Jersey

New

Mexico

New

York

North

Carolina

North

Dakota Ohio Oklahoma Oregon Pennsylvania

Rhode

Island

Current operating revenue—total...................... 33,416 515,340 54,178 3,086,702 236,818 50,413 753,587 186,834 158,269 1,028,629 66,813

Interest on U. S. Government obligations... 3,551 66,715 7,982 273,745 26,091 10,032 120,954 30,291 17,121 131,088 4,802

Interest and dividends on other securities.. 1,563 51,858 2,558 275,559 16,794 4,348 61,876 11,450 10,854 94,892 7,333

Interest and discount on loans.................... 23,969 335,170 36,104 2,075,146 153,543 29,484 484,013 123,668 105,698 669,919 44,061

Service charges and fees on loans.............. 281 4,624 520 29,245 4,947 334 5,205 1,318 2,160 8,236 538

Service charges on deposit accounts......... 2,536 29,432 4,184 91,582 14,944 2,585 35,875 12,562 14,422 34,235 3,164

Other charges, commissions, fees, etc....... 485 5,959 1,507 42,145 10,153 2,872 9,204 2,934 1,967 12,858 887

Trust department........................................... 596 16,971 859 217,468 7,667 359 29,265 2,624 3,998 63,585 5,224

Other current operating revenue................. 435 4,611 464 81,812 2,679 399 7,195 1,987 2,049 13,816 804

Current operating expenses—total................... 25,065 397,938 42,368 2,231,795 172,676 37,567 555,862 132,735 125,512 747,627 50,669

Salaries—officers............................................ 3,367 39,412 6,253 173,901 24,843 6,460 52,247 24,012 16,659 74,239 4,127

Salaries and wages—other employees........ 4,427 81,455 8,846 444,394 37,450 5,166 102,278 23,014 23,312 138,807 9,221

Officer and employee benefits..................... 1,083 17,701 1,308 119,000 7,284 1,436 18,987 5,061 4,389 33,888 2,738

Fees paid to directors and committees....... 345 3,127 408 5,322 960 408 3,351 1,364 292 6,189 226

Interest on time and savings deposits........ 8,955 153,862 12,602 983,112 58,409 15,419 241,902 44,534 54,755 305,744 24,296

Interest on borrowed money........................ 77 3,602 134 69,065 1,582 110 4,820 1,676 371 11,363 371

Occupancy expense of bank premises—net. 1,429 25,683 2,737 147,377 10,123 1,999 25,461 7,048 6,990 41,698 2,348

Furniture and equipment.............................. 1,011 14,158 2,013 51,731 6,408 1,226 16,511 5,223 4,261 26,044 1,582

Other current operating expenses............... 4,371 58,938 8,067 237,893 25,617 5,343 90,305 20,803 14,483 109,655 5,760

Net current operating earnings......................... 8,351 117,402 11,810 854,907 64,142 12,846 197,725 54,099 32,757 281,002 16,144

Recoveries, transfers from valuation reserves, and prof its—total.............................

On securities:

1,373 10,442 1,446 59,862 5,769 834 15,640 3,220 7,172 24,300 7,474

Profits on securities sold or redeemed...

Recoveries ....

784

55

4,537

39

414 9,991

252

2,149

6

257

4

2,013

54

1,631

10

239 4,475

335

288

Transfers from valuation reserves...........

On loans:

101 1,007 489 22,943 63 2 5,487 21 6,542 6,185 1,479

Recoveries................................................... 65 253 141 1,189 53 81 544 968 57 651 13

Transfers from valuation reserves 16 1,733

2,873

172 14,915

10,572

1,803

1,695

141 4,685

2,857

51 8,931 3,942

All other........................................................... 352 230 349 539 334 3,723 1,752

Losses, charge-offs, and transfers to valuation reserves—total.....................................

On securities:

2,577 29,688 4,120 267,354 13,308 2,380 38,591 13,381 9,108 66,588 2,876

Losses on securities sold...........................

Charge-offs prior to sale

252

96

4,134

52

179

15

8,026

240

375

62

176

50

4,856

158

601

61

74 7,288

308

127

Transfers to valuation reserves................

On loans:

199 2,505 73 6,227 1,468 6 1,583 105 839 4,678 201

Losses and charge-offs 142 422 167 893 135 290 961 2,025

9,634

58 1,554

Transfers to valuation reserves................ 1,493 17,235 3,264 237,379 8,590 1,411 28,298 6,808 45,938 1,822

All other........................................................... 395 5,340 422 14,589 2,678 447 2,735 955 1,329 6,822 726

Net income before related taxes....................... 7,147 98,156 9,136 647,415 56,603 11,300 174,774 43,938 30,821 238,714 20,742

170 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Taxes on net income—total................................

Federal.............................................................

State ...............................................................

2.344

2.344

21.693

21.693

2.948

2.948

160,398

127,245

33,153

20,224

18,543

1,681

3,482

3,250

232

50.744

50.744

14,714

13,414

1,300

8,793

6,387

2,406

62,121

62,121

3,590

2,771

819

Net income after related taxes......................... 4,803 76,463 6,188 487,017 36,379 7,818 124,030 29,224 22,028 176,593 17,152

Dividends and interest on capital—to tal.........

Cash dividends declared on common stock.

Dividends declared on preferred stock and

interest on capital notes and debentures.

1.624

1.624

34,681

32,718

1,963

3,208

3,172

36

292,231

270,097

22,134

15,149

13,422

1,727

3.146

3.146

48,428

48,231

197

15,221

14,370

851

9.781

9.781

91,951

90,870

1,081

5.217

5.217

Net additions to capital from income............. 3,179 41,782 2,980 194,786 21,230 4,672 75,602 14,003 12,247 84,642 11,935

Number of banking employees (exclusive of

building employees), December 31:

Active officers.................................................

Other employees............................................

370

1,291

3,425

19,588

604

2,336

12,232

89,941

2,476

10,701

734

1,522

4,588

24,594

2,502

6,264

1,700

5,593

6,991

33,724

362

2,315

Memoranda

Recoveries credited to valuation reserves

(not included in recoveries above):

On securities................................................... 14 461 86 82 142

On loans..........................................................

Losses charged to valuation reserves (not

included in losses above):

On securities...................................................

234 3,830

674

1,110 18,084

5,442

706

1,476

3,005

183 4,838

1,401

12,093

2,829

222

710 5,214

4,248

18,308

284

On loans.......................................................... 856 11,257 3,552 75,914 484 8,559 2,594 884

Occupancy expense of

bank premises

Occupancy expense of bank premises, n e ttotal ....................................................................

Rental and other income..................................

Occupancy expense of bank premises,

gross—total......................................................

Salaries—building department officers.......

1,429

165

1,594

25,683

2,996

28,679

40

2,737

518

3,255

147,377

30,193

177,570

418

10,123

2,105

12,228

34

1,999

415

2,414

1

25,461

12,522

37,983

148

7,048

4,229

11,277

35

6,990

398

7,388

73

41,698

6,780

48,478

194

2,348

1,622

3,970

38

Salaries and wages—building department

employees...................................................

Building department personnel benefits .

Recurring depreciation..................................

Maintenance and repairs..............................

Insurance and utilities...................................

Rents paid.......................................................

Taxes...............................................................

181

14

297

132

243

427

300

3,022

424

4,915

4,285

4,334

6,170

5,489

404

49

640

411

493

908

350

13,787

2,428

33,218

14,175

32,302

55,089

26,153

1,189

110

2,622

1,406

2,349

3,456

1,062

264

21

615

171

562

396

384

6,358

707

6,902

4,645

6,365

9,676

3,182

1,499

167

2,169

1,141

2,181

3,294

791

729

76

1,731

1,158

1,305

1,175

1,141

8,169

1,084

9,101

4,963

7,939

11,548

5,480

945

148

593

335

537

724

650

Number of building employees, December

31:

Officers............................................................ 4 71 2 3 27 9 7 24 5

Other employees............................................ 95 950 130 3,158 561 175 2,201 588 206 2,808 279

Number of banks, December 3 1 .................... 71 230 64 316 145 163 541 420 48 561 9

Note: For average asset and liability data by State, see Table 111, pp. 146-147.

Back figures, 1946-1964: See the Annual Report for 1964, pp. 206-215, and earlier reports.

INCOME OF INSURED BANKS 171

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Federal Reserve Bank of St. Louis
Table 119. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

BY STATE, 1965— CONTINUED

(Amounts in thousands of dollars)

Income item South

Carolina

South

Dakota Tennessee Texas Utah Vermont Virginia Washington

West

Virginia Wisconsin Wyoming

Current operating revenue—total...................... 76,634 57,550 244,705 837,061 77,175 31,398 271,605 212,256 90,157 302,224 29,882

Interest on U. S. Government obligations... 11,065 11,623 35,755 112,788 6,802 3,599 34,105 25,257 21,159 59,972 5,061

Interest and dividends on other securities.. 5,873 3,221 18,216 61,431 4,713 1,838 17,658 13,441 5,474 20,948 1,218

Interest and discount on loans.................... 48,293 35,501 168,663 568,959 53,055 22,880 184,189 137,229 55,225 190,092 20,153

Service charges and fees on loans.............. 436 301 2,486 8,959 1,831 273 4,109 3,333 780 1,804 295

Service charges on deposit accounts......... 5,459 3,184 9,221 43,403 5,910 1,717 15,843 18,570 2,981 13,508 1,853

Other charges, commissions, fees, etc....... 3,081 2,650 3,844 12,906 2,306 247 5,323 4,750 1,413 .4,624 815

Trust department........................................... 1,621 490 4,914 18,144 1,860 571 8,172 6,838 2,253 7,420 264

Other current operating revenue................. 806 580 1,606 10,471 698 273 2,206 2,838 872 3,856 223

Current operating expenses—total.................. 52,122 42,027 179,625 615,589 56,622 25,572 201,139 162,872 61,297 229,273 22,511

Salaries—officers............................................ 9,742 8,177 20,718 85,159 6,409 2,724 24,290 20,209 8,430 31,944 3,542

Salaries and wages—other employees........ 13,998 6,262 30,661 100,527 9,686 3,864 37,074 36,037 11,250 35,254 3,779

Officer and employee benefits..................... 2,958 1,780 6,292 20,578 1,976 796 7,353 7,330 2,277 9,260 720

Fees paid to directors and committees...... 580 543 1,202 6,135 414 328 1,849 419 916 2,806 327

Interest on time and savings deposits........ 8,700 15,916 76,546 221,033 25,098 13,115 80,093 61,236 22,875 98,769 8,518

Interest on borrowed money........................ 84 53 2,463 12,644 711 27 1,144 864 102 1,656 169

Occupancy expense of bank premises—net. 3,208 2,139 9,096 40,345 2,603 1,288 10,377 10,021 2,988 11,481 1,178

Furniture and equipment.............................. 2,811 1,412 6,523 21,571 2,335 630 6,852 6,501 2,223 7,718 1,012

Other current operating expenses............... 10,041 5,745 26,124 107,597 7,390 2,800 32,107 20,255 10,236 30,385 3,266

Net current operating earnings......................... 24,512 15,523 65,080 221,472 20,553 5,826 70,466 49,384 28,860 72,951 7,371

Recoveries, transfers from valuation reserves, and profits—to tal.............................

On securities:

1,993 566 5,307 11,569 1,321 442 4,761 3,233 1,954 4,323 525

Profits on securities sold or redeemed... 1,497 143 3,387 2,564 238 189 668 970 687 2,225 182

Recoveries...................................................

Transfers from valuation reserves...........

On loans:

1 31 63

434

101

348 595

1

30

193

1,060

31

866

5

37

65

440

1

86

Recoveries................................................... 41 205 377 3,404 81 55 228 78 151 97 177

Transfers from valuation reserves........... 120 24 150 1,679 71 17 1,686 446 375 428 4

All other........................................................... 334 163 896 3,473 336 150 926 842 699 1,068 75

Losses, charge-offs, and transfers to valuation reserves—total.....................................

On securities:

3,359 2,037 14,248 62,302 4,537 1,584 19,576 11,977 5,413 12,632 1,400

Losses on securities sold........................... 162 137 2,383 3,549 566 262 2,047 1,403 462 1,913 30

Charge-offs prior to sale......................... 60 26 417 463 20 7 60 11 105 173 28

Transfers to valuation reserves................

On loans:

165 6 272 3,225 49 25 574 525 21 261 76

Losses and charge-offs.............................. 108 133 666 6,715 712 56 683 209 278 204 226

Transfers to valuation reserves................ 2,350 1,280 8,668 41,753 2,864 1,055 13,882 7,903 3,545 8,107 873

All other........................................................... 514 455 1,842 6,597 326 179 2,330 1,926 1,002 1,974 167

Net income before related taxes...................... 23,146 14,052 56,139 170,739 17,337 4,684 55,651 40,640 25,401 64,642 6,496

172 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Taxes on net income—to tal................................

Federal............................................................

State................................................................

8,036

7,484

552

4,772

4,332

440

18,177

17,819

358

49.874

49.874

5,695

5,391

304

1,270

1,128

142

17.610

17.610

13.966

13.966

8.841

8.841

20,693

17,058

3,635

2.329

2.329

Net income after related taxes.........................

Dividends and interest on capital—total.........

Cash dividends declared on common stock.

Dividends declared on preferred stock and

interest on capital notes and debentures.

Net additions to capital from income.............

15,110 9,280 37,962 120,865 11,642 3,414 38,041 26,674 16,560 43,949 4,167

5,776

5,7751

3,355

3,336

19

13,189

13,035

154

60,725

58,859

1,866

5,875

5,727

148

1,632

1,558

74

19,000

18,893

107

12,181

12,169

12

5.541

5.541

17,670

17,443

227

1,789

1,735

54

9,334 5,925 24,773 60,140 5,767 1,782 19,041 14,493 11,019 26,279 2,378

Number of banking employees (exclusive of

building employees), December 31:

Active officers.................................................

Other employees............................................

1,043

4,344

911

1,801

2,353

8,529

8,433

26,517

679

2,669

321

1,110

2,605

10,772

1,984

8,413

923

3,059

3,134

9,935

349

943 —■7

Memoranda

Recoveries credited to valuation reserves

(not included in recoveries above):

On securities...................................................

6

593

1

1,118

11

3,662

101

13,954

1,826

39,639

67

153

242

1,302

214

5,183

19

435

52

1,469

4

1,7174

4,140

OO

4 m

380 OT| 2

On loans..........................................................

Losses charged to valuation reserves (not

included in losses above):

On securities...................................................

403 387 923

51

On loans.......................................................... 1,167 1,125 1,130 613 2,714 964 £2

Occupancy expense of

bank premises

Occupancy expense of bank premises, n e ttotal....................................................................

Rental and other income..................................

Occupancy expense of bank premises,

gross—total......................................................

Salaries—building department officers

Salaries and wages—building department

employees...................................................

Building department personnel benefits. . .

Recurring depreciation..................................

Maintenance and repairs..............................

Insurance and utilities..................................

Rents paid.......................................................

Taxes...............................................................

3,208

267

3,4751

297

39

788

521

836

796

197

2,139

368

2,5071

297

29

348

289

579

532

432

9,096

2,790

11,886

42

1,513

129

2,898

1,318

2,101

1,639

2,246

40,345

26,362

66,707

190

6,650

607

12,252

6,100

11,655

13,315

15,938

2,603

1,083

3,686

13

492

35

823

317

592

967

447

1,288

155

1,443

200

20

263

108

241

428

183

10,377

1,669

12,046

10

1,709

175

2,418

1,138

2,341

3,267

988

10,021

960

10,981

62

880

144

3,174

1,886

1,918

1,832

1,085

2,988

858

3,846

23

632

61

815

462

724

608

521

11,481

2,852

14,333

61

1,810

187

2,751

1,477

2,608

2,991

2,448

70m0

1,178 §

301 g

1,479 O? 4

161

12

380

195

282

155

2S0

Number of building employees, December

31:

Officers............................................................

Other employees............................................

1

192

12

215

7

657

21

2,224

1

227 106

2

837

6

232

3

299

6

828

2

71 5

Number of banks, December 3 1 .................... 125 169 294 1,130 56 47 262 99 186 578 69 ^

Note: For average asset and liability data by State, see Table 111, pp. 146-147.

Back figures, 1946-1964: See the Annual Report for 1964, pp. 206-215, and earlier reports.

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Federal Reserve Bank of St. Louis
Table 120. INCOME OF INSURED MUTUAL SAVINGS BANKS, 1957-1965

(Amounts in thousands of dollars)

Incom e item 1957 1958 1959 196 0 1961 1962 1963 1 96 4 1965

Current operating income—total................................................... 1,026,327 1,149,643 1,280,347 1,461,763 1,595,183 1,755,582 1,946,776 2,164,115 2,391,753

In te re s t on U. S. G o ve rn m e n t o b lig a tio n s .................................. 147,157 141,950 146,353 152,458 151,931 156,410 153,659 153,368 147,751

In te re s t and d ivid e n d s on o th e r s e c u ritie s ................................ 127,212 167,489 180,535 199,258 205,751 206,367 203,720 207,164 211,278

In te re s t and d is c o u n t on real esta te m o rtgag e loans— net 720,215 808,975 921,315 1,070,173 1,194,282 1,342,896 1,534,446 1,738,621 1,950,930

In terest an d discou n t on real estate m ortgage lo a n s— g r o s s........................... 7 U ,S 0 3 8 3 6 ,5 1 5 9 5 1 ,9 5 2 1 , 10 4,100 1 ,2 3 1 ,7 7 4 1 ,3 8 3 ,7 3 5 1 ,5 8 0 ,2 7 6 1 ,7 9 0 ,3 1 8 2 ,0 0 9 ,2 1 4

L e s s : M ortgage servicing f e e s ................................................................................. 2 3 ,1 3 8 2 5 ,9 8 5 2 9 ,1 5 4 3 2 ,3 4 3 3 6 ,0 4 5 3 9 ,2 8 3 44,174 4 9 ,7 5 6 5 6 ,1 6 5

P rem iu m a m o rtiz a tio n ................................................................................. 950 1 ,5 5 5 1 ,4 8 3 1 ,5 8 4 1,447 1 ,5 5 6 1 ,6 5 6 1,9 4 1 2 ,1 1 9

In te re s t and d is c o u n t on o th e r loans and d is c o u n ts — n e t... 10,848 11,749 12,669 18,407 18,767 22,733 27,576 33,538 41,773

Incom e on real estate o th e r than bank b u ild in g — n e t.......... 31 2 - 1 27 -3 8 -5 2 -108 -1 2 2 -97

In c o m e on real estate other than b an k b u ild in g — g r o s s.................................... 140 139 216 397 379 302 296 421 541

L e s s : O peratin g e x p e n s e.......................................................................................... 109 137 217 370 417 354 404 543 638

Incom e on o th e r a s s e ts ....................................................................... 7,898 8,384 7,486 7,474 9,081 9,777 9,984 13,121 18,713

In co m e fro m service o p e ra tio n s ..................................................... 12,966 11,094 11,990 13,966 15,409 17,451 17,499 18,425 21,405

Current operating expenses—total............................................... 174,758 187,758 201,402 224,789 241,685 252,963 274,544 290,471 311,755

S a laries—o ffic e rs .................................................................................... 28,590 30,099 32,082 36,608 38,158 40,466 42,792 45,391 48,514

S alaries and w ages—o th e r e m p lo y e e s ......................................... 58,310 61,797 64,396 71,295 75,303 79,165 84,514 89,514 93,680

Pension, h o sp ita liza tio n and g ro u p in su ra n ce paym ents, 

and o th e r em plo yee b e n e fits ..................................................... 16,478 18,314 20,006 22,656 24,134 25,419 27,202 28,138 30,080

Fees paid to tru s te e s and co m m itte e m e m b e rs ...................... 3,007 3,203 3,366 3,731 3,994 4,158 4,404 4,604 4,720

O ccupancy, m a intena nce, etc. of bank prem ises (in clu d in g 

taxes and re c u rrin g d e p re c ia tio n )— n e t............................... 19,326 20,925 22,695 25,255 27,369 29,269 32,160 34,683 37,219

O ccu pan cy, m ain ten an ce, etc. o f b a n k ‘s p rem ises (in clu d in g taxes an d

recu rrin g d e p r e c ia tio n )— g r o s s...................................................................... 2 7 ,8 4 6 3 0 ,2 5 2 3 2 ,2 6 8 3 5 ,1 2 0 3 7 ,2 9 8 3 9 ,2 9 7 4 2 ,5 8 3 4 5 ,8 7 1 4 9 ,0 9 3

L e s s : In c o m e fr o m b a n k b u ild in g .........................................................................

D eposit in sura nce a s s e s s m e n ts .....................................................

8 ,5 2 0 9 ,3 2 7 9 ,5 7 3 9 ,8 6 5 9 ,9 2 9 1 0 ,0 2 8 1 0 ,4 2 3 1 1 ,1 8 8

14,035

1 1 ,8 7 4

9,407 10,183 11,316 11,707 12,824 12,172 12,709 15,887

F u rn itu re and fix tu re s (in c lu d in g re c u rrin g d e p re c ia tio n ) . 3,251 3,501 4,445 4,740 5,438 5,997 7,714 9,182 10,262

All o th e r c u rre n t o p e ra tin g e x p e n s e s ........................................... 36,389 39,736 43,096 48,797 54,465 56,317 63,049 64,924 71,393

Net current operating income............. 851,569 961,885 1,078,945 1,236,974 1,353,498 1,502,619 1,672,232 1,873,644 2,079,998

Franchise and income taxes—total.............................................. 9,060 10,342 11,649 13,637 16,011 17,966 22,587 26,022 29,487

S tate fra n c h is e and in com e ta x e s .................................................. 8,972 9,831 11,172 13,190 15,277 17,502 19,168 21,657 22,048

Federal incom e ta x e s ............................................................................ 88 511 477 447 734 464 3,419 4,365 7,439

Net current operating income after taxes.................................. 842,509 951,543 1,067,296 1,223,337 1,337,487 1,484,653 1,649,645 1,847,622 2,050,511

Dividends and interest on deposits.............................................. 716,383 812,254 897,469 1,073,542 1,147,767 1,334,005 1,481,869 1,653,768 1,809,350

Net current operating income after taxes and dividends......... 126,126 139,289 169,827 149,795 189,720 150,648 167,776 193,854 241,161

Non-recurring income, realized profits and recoveries

credited to profit and loss, and transfers from valuation

adjustment provisions—to tal.................................................. 48,148 66,160 91,205 142,009 113,763 105,907 113,085 105,454 75,130

N o n -re cu rrin g in c o m e .......................................................................... 13,434 17,295 21,147 31,133 17,567 20,453 28,678 18,048 15,242

Realized p ro fits and recoveries on:

S e curities sold or m a tu re d ............................................................. 16,022 30,974 39,498 34,860 54,263 55,751 28,752 36,472 27,375

Real estate m ortgage lo a n s ........................................................... 259 138 192 283 629 739 2,465 1,088 1,266

O ther real e s ta te ................................................................................. 437 367 646 535 337 462 807 571 719

All o th e r a s s e ts .................................................................................... 431 624 2,498 6,576 459 957 871 1,096 1,532

T ra n sfe rs 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 ................................................................................................ 5,939 8,345 14,270 57,588 10,873 5,460 26,995 22,029 11,817

Real estate m ortgage lo a n s ........................................................... 10,850 8,068 12,021 10,480 29,068 21,465 24,342 25,786 16,365

O ther real e s ta te ................................................................................. 65 28 17 86 36 66 46 92 121

All o th e r a s s e ts .................................................................................... 711 321 916 468 531 554 129 272 693

174 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Non-recurring expenses, realized losses charged to profit

and loss, and transfers to valuation adjustment provisions—total....................................................................

Non-recurring expenses..............................................

Realized losses on:

Securities sold.............................................................

Real estate mortgage loans......................................

Other real estate.........................................................

All other assets...........................................................

Transfers to valuation adjustment provisions1 on:

Securities.....................................................................

Real estate mortgage loans......................................

Other real estate...............................................................

All other assets..................................................................

83,870

12,958

35,526

1,036

179

191

18,062

15,236

16

666

79,852

13,699

25,056

603

191

684

21,946

16,733

45

895

126,876

11,385

66,875

330

260

440

30,347

16,151

40

1,048

123,664

16,981

63,846

508

210

315

23,352

17,679

19

754

116,143

17,692

40,851

1,252

375

404

19,337

35,377

111

744

109,192

18,941

31,379

1,083

662

424

30,925

25,252

76

450

101,611

17,331

47,629

1,681

656

655

11,548

21,534

74

503

88,234

12,991

39,884

2,023

712

936

8,692

22,266

57

673

93,036

15,306

48,124

3,037

886

927

6,524

17,394

122

716

Net additions to total surplus accounts from operations . 90,404 125,597 134,156 168,140 187,340 147,363 179,250 211,074 223,255

Memoranda

Recoveries credited to valuation adjustment provisions1

(not included in recoveries above) on:

Securities................................................................ 972 571 173 471 278 1,658 3,389 756 341 Real estate mortgage loans....................................................

Other real estate..........................................................

365

39

14 99

2

136 53 48 201 64 85

All other assets...................................................... 5 5 37 585 6 35 14 13 24 Realized losses charged to valuation adjustment provisions1 (not included in realized losses above) on:

Securities........................................................ 8,741 6,267 9,339 8,110 7,721 5,830 12,973 6,058 6,564 Real estate mortgage loans................................................

Other real estate......................................................................

342

127

217

3

197

26

1,131

13

720

5

501

6

5,136

190

178

765 841

118

308 All other assets......................................................................... 67 300 385 165 218 448 258

Average assets and liabilities2

Assets—total.................................................................... 26,904,256 29,160,570 31,248,671 34,339,564 35,916,590 38,152,221 41,180,616 44,609,410 48,466,656 Cash and due from banks.................................... 723,830 742,225 689,698 721,308 757,912 794,362 786,298 768,719 891,727 United States Government obligations................................. 5,592,025 5,338,796 5,236,825 5,092,512 4,791,909 4,748,691 4,563,328 4,351,966 4,030,731 Other securities...................................................... 3,559,430 4,378,447 4,677,222 5,036,291 5,228,022 5,151,555 5,115,637 5,057,794 5,069,343 Real estate mortgage loans........................................ 16,445,982 18,045,621 19,937,652 22,628,058 24,255,437 26,435,337 29,528,513 33,121,502 36,991,670 Other loans and discounts.......................................... 185,174 227,027 244,010 355,327 353,474 441,994 543,458 588,196 672,117 Other real estate................................................................... 3,586 4,361 7,002 11,555 18,955 19,640 21,114 28,389 27,228 All other assets..................................... 394,229 424,093 456,262 494,513 510,881 560,642 612,268 692,844 783,840

Liabilities and surplus accounts—total . . 26,904,256 29,160,570 31,248,671 34,339,564 35,916,590 38,152,221 41,180,616 44,609,410 48,466,656 Total deposits..................................................... 24,322,261 26,304,610 28,136,390 30,822,839 32,320,488 34,350,820 37,175,285 40,334,274 43,985,749 Savings and time deposits.................................. 24,295,761 26,274,758 28,106,089 30,790,599 32,113,129 34,070,511 36,870,906 39,997,217 43,609,062 Demand deposits................................................ 26,500

318,445

29,852 30,301 32,240 207,359 280,309 304,379 337,057 376,687 Other liabilities..................................................... 431,019 512,192 598,011 506,744 537,630 588,622 660,037 653,614 Total surplus accounts........................................ 2,263,550 2,424,941 2,600,089 2,918,714 3,089,358 3,263,771 3,416,709 3,615,099 3,827,293

Number of active officers, December 3 1 ............. 2,239 2,356 2,504 2,885 2,977 3,085 3,170 3,281 3 423 Number of other employees, December 3 1 ............................ 14,590 14,925 15,110 16,753 17,290 17,617 18,459 18,958 19,'451

Number of banks, December 3 1 .............................................. 239 241 268 325 330 331 330 327 329

1 Includes "Valuation reserves” and "Other asset valuation provisions (direct write-downs).”

2 For 1957 through I960, averages of figures reported at beginning, middle, and end of year. For 1961 through 1965, 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.

Back figures, 1934-1956: Data for 1934-1950, which however are not comparable with figures for 1951-1965, may be found in the following Annual Reports: 1941, p. 173; and 1950 pp. 272-273 For 1951-1956 see 

the Annual Report for 1959, pp. 166-167. ' '

INCOME OF INSURED BANKS 175

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Table 121. RATIOS OF INCOME OF INSURED MUTUAL SAVINGS BANKS, 1957-1965

Income item 1957 1958 1959 1960 1961 1962 1963 1964 1965

Amounts per $100 of current operating income

Current operating income—to tal................................................................................................................ $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00

Interest on U. S. Government obligations............................................................................................ 14.34 12.35 11.43 10.43 9.52 8:91 7.89 7.09 6.18

Interest and dividends on other se curities........................................................................................... 12.40 14.57 14.10 13.63 12.90 11.76 10.46 9.57 8.83

Interest and discount on real estate m ortgage loans—n e t.............................................................. 70.17 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............................................................... 1.06 1.02 .99 1.26 1.18 1.29 1.42 1.55 1.75

Income on other assets............................................................................................................................. .77 .73 .58 .51 .57 .56 .51 .60 .78

Income from service operations.............................................................................................................. 1.26 .96 .94 .96 .96 .99 .90 .85 .89

Current operating expenses—to tal............................................................................................................. 17.03 16.33 15.73 15.38 15.15 14.41 14.10 13.42 13.03

Salaries—o ffice rs.......................................................................................................................................... 2.79 2.62 2.51 2.50 2.39 2.30 2.20 2!10 2.03

Salaries and wages other em ployees................................................................................................... 5.68 5.37 5.03 4.88 4.72 4.51 4.34 4.14 3.92

Pension, hospitalization and group insurance payments, and other employee benefits. 1.60 1.59 1.56 1.55 1.51 1.45 1.40 1.30 1.26

Fees paid to trustees and com m ittee m em bers................................................................................. .29 .28 .26 .26 .25 .24 .23 .21 .20

Occupancy, maintenance, etc. of bank premises (including taxes and recurring depreciation), 

—n e t............................................................................................................................................................. 1.88 1.82 1.77 1.73 1.72 1.67 1.65 1.60 1.55

Deposit insurance assessm ents.............................................................................................................. .92 .89 .88 .80 .80 .69 .65 .65 .66

Furniture and fixtures (including recurring depreciation)................................................................ .32 .30 .35 .32 .34 .34 .39 .42 .43

All other current operating expenses..................................................................................................... 3.55 3.46 3.37 3.34 3.42 3.21 3.24 3.00 2.98

Net current operating income.............. .... 82.97 83.67 84.27 84.62 84.85 85.59 85.90 86.58 86.97

Franchise and income taxes—to tal............................................................................................................ .88 .90 .91 .93 1.00 1.02 1.16 1.20 1.24

State franchise and income ta xe s........................................................................................................... .87 .86 .87 .90 .96 1.00 .98 1.00 .93

Federal income taxes.................................................................................................................................. .01 .04 .04 .03 .04 .02 .18 .20 .31

Net current operating income after taxes . 82.09 82.77 83.36 83.69 83.85 84.57 84.74 85.38 85.73

Dividends and interest on deposits............................................. . . . 69.80 70.65 70.10 73.44 71.95 75.99 76.12 76.42 75.65

Net current operating income after taxes and dividends................................................................... 12.29 12.12 13.26 10.25 11.90 8.58 8.62 8.96 10.08

176 FEDERAL DEPOSIT INSURANCE CORPORATION

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Amounts per $100 of total assets1

Current operating income—total....................................................................................................... 3.81 3.94 4.10 4.26 4.44 4.60 4.73 4.85 4.93

Current operating expenses—total................................................................................................... .65 .64 .65 .66 .67 .66 .67 .65 64

Net current operating income.............................................................................................. 3.16 3.30 3.45 3.60 3.77 3.94 4.06 4.20 4 29

State franchise and income taxes.............................................................. ............................. .03 .04 .03 .04 .05 .05 .05 .06 06

Net current operating income after taxes....................................................................................... 3.13 3.26 3.42 3.56 3.72 3.89 4.01 4.14 4 23

Dividends and interest on deposits.................................................................................................. 2.66 2.78 2.87 3.12 3.19 3.50 3.60 3.71 3 73

Net current operating income after taxes and dividends............................................................... .47 .48 .55 .44 .53 .39 .41 .43 .50

Non-recurring income, realized profits and recoveries credited to profit and loss, and transfers

from valuation adjustment provisions2—total.............................................................................. .18 .22 .29 .41 .31 .28 .27 .24 .15

Non-recurring expenses, realized losses charged to profit and loss, and transfers to valuation

adjustment provisions2—total........................................................................................................ .31 .27 .41 .36 .32 .28 .24 .20 .19

Net additions to total surplus accounts from operations............................................................... .34 .43 .43 .49 .52 .39 .44 .47 .46

Special ratios1

Interest on U. S. Government obligations per $100 of U. S. Government obligations...............

Interest and dividends on other securities per $100 of other securities.....................................

Interest and discount on real estate mortgage loans per $100 of real estate mortgage loans

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 time deposits...............................

Net additions to total surplus accounts from operations per $100 of total surplus accounts........

2.63

3.57

4.38

5.86

2.95

3.99

2.66

3.83

4.48

5.18

3.09

5.18

2.79

3.86

4.62

5.19

3.19

5.16

2.99

3.96

4.73

5.18

3.49

5.76

3.17

3.94

4.92

5.31

3.57

6.06

3.29

4.01

5.08

5.14

3.92

4.52

3.37

3.98

5.19

5.07

4.02

5.25

3.52

4.10

5.25

5.70

4.13

5.84

3.67

4.17

5.27

6.22

4.15

5.83

Assets and liabilities per $100 of total assets1

Assets—total........................................................................................................................................ 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Cash and due from banks.............................................................................................................. 2.69 2.55 2.21 2.10 2.11 2.08 1.91 1.72 1.84

United States Government obligations......................................................................................... 20.78 18.31 16.76 14.83 13.34 12.45 11.08 9.76 8.32

Other securities............................................................................... 13.23 15.01 14.97 14.67 14.56 13.50 12.42 11.34 10.46

Real estate mortgage loans............................................................................................................ 61.13 61.88 63.80 65.90 67.53 69.29 71.73 74.25 76.32

Other loans and discounts................................................................... ........................... .69 .78 .78 1.03 .99 1.16 1.32 1.32 1.39

Other real estate.............................................................................................................................. .01 .02 .02 .03 .05 .05 .05 .06 .05

All other assets...................................................................... 1.47 1.45 1.46 1.44 1.42 1.47 1.49 1.55 1.62

Liabilities and surplus accounts—to ta l................................................................................................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Total deposits.............................................................................. 90.40 90.20 90.04 89.76 89.99 90.04 90.27 90.42 90.75

Savings and time deposits.............................................................................................................................................. 90.30 90.10 89.94 .10 89.67 89.41

.58

89.30 89.53 89.66 89.98

Demand deposits............................................................................................................................................................ .10 .10 .09 .74

1.41

.74

1.43

.76 .77

Other liabilities............................................................................ 1.19 1.48 1.64 1.74 1.41 1.48 1.35

Total surplus accounts.................................................................................................................... 8.41 8.32 8.32 8.50 8.60 8.55 8.30 8.10 7.90

Number of banks, December 3 1 ........................................................... ............................. 239 241 268 325 330 331 330 327 329

1 For 1957 through 1960, averages of figures reported at beginning, middle, and end of year. For 1961 through 1965, 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.

2 Includes "Valuation reserves” and "Other asset valuation provisions (direct write-downs)” .

Back figures, 1934,1941-1950, and 1951-1956: Data for 1934 and 1941-1950, which however are not comparable with figures for 1951-1965, may be found in the following Annual Reports: 1947, pp. 156-157 and 

1950, pp. 274-275. For 1951-1956, see the Annual Report for 1959, pp. 168-169.

INCOME OF INSURED BANKS 177

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BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES, AND 

DEPOSIT INSURANCE DISBURSEMENTS

Table 122. Number and deposits of banks closed because of financial difficulties, 

1934-1965, by years

Table 123. Insured banks requiring disbursements by the Federal Deposit Insurance 

Corporation during 1965 

Table 124. Depositors, deposits, and disbursements in insured banks requiring disbursements by the Federal Deposit Insurance Corporation, 1934-1965 

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

assumption, amount of deposits, and State

Table 125. Recoveries and losses by the Federal Deposit Insurance Corporation on 

principal disbursements for protection of depositors, 1934-1965

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Disbursements by the Federal Deposit Insurance Corporation to

protect depositors are made when the insured deposits of banks in 

financial difficulties are paid off, or when the deposits of a failing 

bank are assumed by another insured bank with the financial aid of 

the Corporation. In deposit payoff cases, the disbursement is the 

amount paid by the Corporation on insured deposits. In deposit 

assumption cases, the principal disbursement is the amount loaned 

to failing banks, or the price paid for assets purchased from them; 

additional disbursements are made in those cases as advances for 

protection of assets in process of liquidation and for liquidation 

expenses.

Noninsured bank failures

Four noninsured banks failed in 1965. These banks, with the 

dates of their closing and the amounts of their deposits, were: 

The Citizens Bank, Stockbridge, Georgia (private); February 25, 

1965; deposits, $622,000.

Exchange Bank, Ludowici, Georgia (private); August 7, 1965; 

deposits, $55,000.

Thompson Banking Company, Wrens, Georgia (private); September 14, 1965; deposits, $633,000.

Farmers and Merchants Bank, Portal, Georgia (private); October, 

1965; deposits, $84,500.

For detailed data regarding noninsured banks which suspended 

in the years 1934-1962, see the Annual Report for 1963, pp. 27-41. 

For 1963 and 1964, see Table 122, this Report, and previous Reports for respective years.

Sources of data

Insured banks: books of bank at date of closing; and books of 

FDIC, December 31, 1965.

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 179

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Table 122. NUMBER AND DEPOSITS OF BANKS CLOSED

BECAUSE OF FINANCIAL DIFFICULTIES, 1934-1965, BY YEARS

Number Deposits (in thousands)

Year

Total

1965...

1964...

1963...

1962...

1961...

1960...

1959...

1958...

1957...

1956...

1955...

1954...

1953...

1952...

1951...

1950...

1949...

1948...

1947...

1946...

1945...

1944...

1943...

1942...

1941...

1940...

1939...

1938...

1937...

1936...

1935...

1934...

Total

594

. 9.

8

2

3

9

2

3

9

3

3 

5

4

5

4

5

5 

9 

3

6

2

1 

2

5

23

16

48

72

80

83

72

32

61

Noninsured 1

130

4

1

3

2

5 

12

7

7

3

6

52

Insured

Total

464

5

7

2

1

5

1

3

4 

2 

2

5 

2 

4

3 

2

4

5 

3 

5 

1 

1 

2 

5

20

14

43

60

73

76

69

26

9

Without

disbursements

by

FDIC2

With

disbursements

by

FD IC 3

456

5

7

2

Total

$790,838

45,232

23,751

23,440

4,231

10,611

7,965

2,595

10,413

12,502

11,689

11,953

2,948

45,101

3,313

6,464

5,555

9,217

10,674

7,207

494

5,695

1,915

12,525

19,541

18,805

142,787

160,211

60,444

34,141

28,100

13,987

37,332

Noninsured 1

$59,325

1,395

429

1,220

1,675

1,035

2,173

1,255

360

1,950

390

143

3,056

42

2,552

355

79

358

2,439

1,038

528

592

583

35,364

Insured

Total

$731,513

43,837

23,322

23,440

3,011

8,936

6,930

2,595

8,240

11,247

11,329

11,953

998

44,711

3,170

3,408

5,513

6,665

10,674

7,040

347

5,695

1,915

12,525

19,186

18,726

142,429

157,772

59,406

33,613

27,508

13,404

1,968

Without

disbursements

by

FDIC2

$41,147

3,011

10,084

26,449

1,190

328

85

With

disbursements

by

FDIC3

$690,366

43,837

23,322

23,440

8,936

6,930

2,595

8,240

1,163

11,329

11,953

998

18,262

3,170

3,408

5,513

5,475

10,674

7,040

347

5,695

1,915

12,525

19,186

18,726

142,429

157,772

59,406

33,285

27,508

13,319

1,968

1 For information 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, 

and page 179 of this Report. One noninsured bank placed in receivership in 1934, with no deposits at time of closing, is omitted (see Table 22, note 9). Deposits are unavailable for

7 banks.

2 For information regarding these cases, see Table 23 of the Annual Report for 1963. .

3 For information 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 

reports. Excludes the following cases requiring disbursements by the Corporation: 1 bank in voluntary liquidation in 1937 (payoff case no. 90); 1 noninsured bank with insured 

deposits at date of suspension, its insurance status having been terminated prior to suspension (payoff case no. 162); and 1 foreign-owned bank closed in 1941 by order of the 

Federal Government (payoff case no. 234). Only 2 cases involved mutual savings banks; 1 in 1938 (payoff case no. 157) with deposits of $2,479 thousand, and 1 in 1939 (deposit 

assumption case no. 83) with deposits of $1,585 thousand.

180 FEDERAL DEPOSIT INSURANCE CORPORATION

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Table 123. INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1965

Case

num ber Name and location

Class of 

bank

Number of 

depositors 

or accounts1

Date of closing 

or deposit assumption

First paym ent to 

depositors or 

disbursem ent by FDIC

Disburse

m e n t2

Receiver or liquidating agent 

or assuming bank

Deposit

payoff

275 The Brighton National Bank, 

Brighton, Colorado

N 1,375 January 22, 1965 January 28, 1965 $1,071,165 Federal Deposit Insurance 

Corporation

276 San Francisco National Bank, 

San Francisco, California

N 12,493 January 22, 1965 January 29, 1965 9,926,730 Federal Deposit Insurance 

Corpo ration

277 Winona State Bank, 

Winona, Texas

NM 498 February 5, 1965 February 10, 1965 385,341 Federal Deposit Insurance 

Corporation

Deposit

assum ption

183 Malone State Bank, 

Malone, Texas

NM 695 February 25, 1965 February 25, 1965 378,428 First State Bank, 

Hubbard, Texas

184 First State Bank, 

Covington, Texas

NM 763 April 5, 1965 April 5, 1965 77,296 The First National Bank 

of Itasca,

Itasca, Texas

A ssets3 Liabilities and capital accounts3

Case

num ber Cash and 

due from 

banks

U. S. Gove rnm ent 

obligations

Other

securities

Loans,

discounts,

and

overdrafts

Banking 

house, 

furniture & 

fixtures

Other

real

estate

Other

assets4

Total

Deposits Other

liabilities

Capital

stock

Other

capital

accounts

Total $3,316,842 $11,227,193 $731,851 $40,844,025 $1,631,026 $112,393 $886,990 $58,750,320 $43,877,754 $9,768,772 $2,570,000 $2,533,794

Deposit

payoff

275 128,972 326,821 111,851 2,252,871 76,578 105,394 12,622 3,015,109 2,254,355 409,623 250,000 101,131

276 2,674,534

6,536

10,849,996 620,000 37,929,071

40,039

1,547,462

2

440,119

432,647

54,061,182

479,224

40,175,911 9,335,711 2,250,000 2,299,560

277 434,588 23,438 20,000 1,198

Deposit

assum ption

183 95,675

411,125

50,376 427,462

194,582

6,982

2

6,999 1,601

1

589,095

605,710

524,480

488,420

25.000

25.000

39,615

184 92,290

1 At date of closing. Number of depositors in receivership cases; number of deposit accounts in deposit assumption cases.

2 In receivership cases includes disbursements made to December 31,1965, plus estimated additional disbursements.

3 As determined by FDIC agents after adjustment of books of bank for liabilities or overdrafts discovered subsequent to closing.

4 Includes in case number 277 a shortage account of $381,155.

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS

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Table 124. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL

DEPOSIT INSURANCE CORPORATION, 1934-1965

B A N K S G R O U P E D B Y C L A S S O F B A N K , Y E A R O F D E P O S IT P A Y O F F O R D E P O S IT A S S U M P T IO N , A M O U N T O F D E P O S IT S , A N D S T A T E

N u m b e r o f b a n k s N u m b e r o f d e p o s it o r s 1 D e p o s it s 1

(in t h o u s a n d s o f d o lla r s )

D is b u r s e m e n t s b y F D IC

(in t h o u s a n d s o f d o lla r s )

C la s s ific a tio n P a y o ff

c a s e s

A s s u m p ­

tio n

c a s e s

P a y o ff

c a s e s

A s s u m p ­

tio n

c a s e s

P a y o ff

c a s e s

A s s u m p ­

tio n

c a s e s

P r in c ip a l d is b u r s e m e n t s

A d v a n c e s a n d

e x p e n s e s 2

T o ta l T o ta l T o ta l

T o ta l P a y o ff

c a s e s 3

A s s u m p ­

tio n

c a s e s 4

P a y o ff

c a s e s 5

A s s u m p ­

tio n

c a s e s 6

459 275 184 1,532,325 496,138 1,036,187 701,615 234,116 467,499 350,181 151,650 198,531 2,459 47,585

Class of bank

82 29 53 327,325 82,649 244,676 176,482 76,770 99,712 71,552 3 2,938 38,6 14 696 6 ,1 9 6

S ta te b a n k s m e m b e r s F. R . S . . ..

B a n k s n o t m e m b e r s F. R . S .............

24

353

8

238

16

115

372,545

832,455

86,939

326,550

2 85,606

505,905

190,536

334,597

29,418

127,929

161,119

206,668

103,265

175,364

22,994

9 5,718

80,271

79,647

151

1,612

19,273

2 2,117

Year7

1 9 3 4 ................................................................ 9 9 15,767 15,767 1,968 1,968 941 941 43

1 9 3 5 ...................................................................... 25 24 1 44,655 32,331 12,324 13,319 9,091 4 ,2 2 9 8 ,8 9 0 6 ,0 2 6 2,8 6 5 108 272

1 9 3 6 ................................................................ 69 42 27 89,018 43,225

74,148

4 5,793

56,239

159,673

3 02,549

2 35,694

27,508

33,349

59,684

11,241 16,267

18,389

14,781 8,0 5 6 6 ,7 2 5 67 934

1 9 3 7 ...................................................................... 75 50 25 130,387 14,960 19,160 12,045 7,116 103 905

1 9 3 8 .................................................................. 74 50 24 203,961

392,718

44,288

90,169

10,296 4 9,388 30,480 9,092 21,387 93 4,902

1 9 3 9 ...................................................................... 60 32 28 157,772 32,738 125,034 67,770 26,196 41,574 162 17,603

1 9 4 0 .................................................................. 43 19 24 256,361

73,005

60,688

20,667

38,594

142,429

29,718

5,657

14,730

136,773

14,987

74,134 4 ,895 69,239 89 17,237

1 9 4 1 ...................................................................... 15 8 7 34,411

54,971

23,880 12,278 11,602 50 1,479

1 9 4 2 ...................................................................... 20 6 14

1

5,717 19,186 1,816 17,369 10,825 1,612 9,213 38 1,076

1 9 4 3 .................................................................... 5 4 27,371

5,487

16,917 10,454

4,588

12,525 6,637 5,888 7,172 5,500 1,672 53 72

1 9 4 4 ...................................................................... 2 1 1 899 1,915 456 1,459 1,503 404 1,099 9 37

1 9 4 5 ................................................................ 1 1 12,483 12,483

1,383

10,637

18,540

5,671

6,366

5 ,276

6 752

5,695

347

5,695

347

1,768

265

1,768

265

96

1 9 4 6 .................................................................. 1 1 1,383 11

1 9 4 7 ................................................................ 5 5 10,637

18,540

5,671

6,366

5,276

6 752

7,040

10,674

7,040

10,674

1,724 1,724 360

1 9 4 8 .................................................................... 3 3 2,990 2 ,990 200

1 9 4 9 ............. ............................... 4 4 5,475

5,513

3,4 0 8

5,475 2 ,5 5 2 2,5 5 2 166

1 9 5 0 4 4 5,513

3 ,4 0 8

3 ,1 7 0

18,262

998

3 ,9 8 6 3 ,9 8 6 524

1 9 5 1 ............... ............................... 2 2 1,885

1,369

5,017

1 ,885 127

1 9 5 2 3 3 3,1 7 0

18,262

998

1 ,369 195

1 9 5 3 .................................................................. 2 2 24,469

1,811

17,790

24,469

1,811

5,017

913

428

1 9 5 4 2 2

1

913 145

1 9 5 5 ...................................................................... 5 4 8 ,080 9,7 1 0 11,953 6 ,503 5,4 5 0 6 ,7 8 4 4 ,4 3 8 2,3 4 6 106 665

1 9 5 6 ...................................................................... 2 1 1 15,197

2,338

9,587

3,073

5,465 9 ,7 3 2 11,329 4,7 0 2 6 ,6 2 8 3 ,3 3 3 2,7 9 5 538 87 51

1 9 5 7 .................................................................... 1 1 2,338

4 ,380

1,163

8 ,2 4 0

1 ,163 1,031 1 ,031 20

1 9 5 8 ...................................................................... 4 3 1 5,207 4,1 5 6 4 ,0 8 4 3 ,0 2 6 2 ,7 9 6 230 38 31

1 9 5 9 ...................................................................... 3 3 3 ,073

11,171

2 ,593 2 ,593 1,8 3 5 1 ,835 51

1 9 6 0 ......................................... 1 1 11,171

8,301

6 ,9 3 0 6,9 3 0 4 ,7 6 5

6,201

4 ,7 6 5

6,201

84

1 9 6 1 ........................................................................ 5 5 8,301 8 ,9 3 6 8,9 3 6 154

1 9 6 3 2 2 36,326

19,926

36,326

19,926

2 3,266

23,412

4 3,837

2 3,266 19,222

12,571

1 9,222

12,571

259

1 9 6 4 . .............................................. 7 7 2 3,412 464

1 9 6 5 ...................................................................... 5 3 2 15,810 14,356 1,454 42,865 972 9,4 0 9 8,952 457 381 70

Banks with deposits of—

L e s s th a n $ 1 0 0 , 0 0 0 ............................... 107 83 24 38,347 29,695 8,652

17,858

33,931

86,341

139,207

178,639

190,283

108,948

272,328

6,418

17,759

21,857

53,749

7 1,025

112,703

105,189

113,320

199,594

4 ,947 1,471

3,839

8,961

27,312

48,817

76,138

77,474

64,068

159,418

4 ,999

12,906

15,051

34,863

38,886

58,391

43,8 80

59,505

81,699

4,309 691 88 154

$ 1 0 0 , 0 0 0 to $ 2 5 0 , 0 0 0 .........................

$ 2 5 0 , 0 0 0 to $ 5 0 0 , 0 0 0 .........................

$ 5 0 0 , 0 0 0 to $ 1 , 0 0 0 , 0 0 0 ...................

$ 1 , 0 0 0 , 0 0 0 to $ 2 , 0 0 0 , 0 0 0

$ 2 , 0 0 0 , 0 0 0 to $ 5 , 0 0 0 , 0 0 0 ..............

$ 5 , 0 0 0 , 0 0 0 to $ 1 0 , 0 0 0 , 0 0 0

$ 1 0 , 0 0 0 , 0 0 0 to $ 2 5 , 0 0 0 , 0 0 0 . . . .

$ 2 5 , 0 0 0 , 0 0 0 to $ 5 0 , 0 0 0 , 0 0 0 . . . .

109

61

69

50

36

16

6

5

86

37

33

17

11

4

3

1

23

24

36

33

25

12

3

4

83,370

91,206

159,582

205,975

248,052

222,948

198,033

284,812

65,5 12

57,275

73,241

66,768

69,413

32,665

89,085

12,484

13,920

12,897

2 6,437

22,208

36,5 66

27,715

49,251

4 0,176

1 1,554

1 0,608

19,627

16,707

2 3,770

17,596

3 9,4 35

8 ,0 4 5

1 ,352

4 ,4 4 3

15,236

22,179

34,622

26,284

20,070

73,653

209

161

332

327

354

360

296

331

173

603

2 ,1 9 4

3 ,3 1 7

5,5 2 5

5,491

5 ,4 0 4

2 4,7 23

182 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
State

Alabam a..............

Arkansas............

C alifornia............

Colorado.............

C onnecticut.......

Florida.................

Georgia...............

Idaho...................

Illin o is ..................

India na................

Iow a......................

Kansas................

K e ntucky............

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 C a ro lin a .. 

North D a kota. ..

O hio......................

O klahom a...........

O regon................

Pennsylvania.. . 

South C a ro lin a .. 

South D akota... 

Tennessee.........

Texas...................

V e rm o n t..............

V irg inia................

W ashington........

West V irg inia___

W isconsin...........

W yom ing.............

7,9 0 5

4,434

21.055

1,384

5,379

1,642

9 ,410

2,451

79,617

3 0,006

16.055

5,145

36,139

6 ,0 8 7

9 ,7 1 0

22,567

9 ,0 4 6

32,819

2 .6 5 0

1.651

37,647

1,500

6 ,0 6 9

1,780

522,563

269,621

10,408

14,103

13,751

25,070

3,439

166,894

1,848

12,515

12,358

3 8,200

11,057

35,715

4,179

8,346

26,898

3,212

794

3 ,5 2 9

1 7,8 86

1 ,3 8 4

5 ,3 7 9

448

8 ,7 9 7

2 ,451

4 1,6 98

1 2,549

4 ,0 6 6

2 ,2 5 4

1 8,4 90

6 ,0 8 7

6 ,6 4 3

2 ,0 8 4

2 .6 5 0

1.651

2 9,4 78

849

6 ,0 6 9

103,797

2 8 ,4 4 0

3 ,6 7 7

6 ,7 6 0

7 ,5 8 5

2 0,1 49

1 ,2 3 0

4 3,8 28

403

11,412

9 ,9 9 3

3 5,2 18

8,6 8 7

1 2,638

8 ,3 4 6

18,739

7 ,1 1 1

905

3 ,1 6 9

1 ,1 9 4

613

3 7,9 19

1 7,457

1 1,9 89

2 ,891

1 7,649

9 ,7 1 0

1 5,924

9 ,0 4 6

3 0,7 35

1,169

651

1 ,780

418 ,76 6

241,181

6 ,731

7 ,3 4 3

6 ,1 6 6

4,9 2 1

2 ,2 0 9

123,066

1 ,4 4 5

1,103

2 ,3 6 5

2,9 8 2

2 ,3 7 0

2 3,0 77

4 ,1 7 9

8 ,1 5 9

3 ,2 1 2

2 ,2 8 5

1 ,7 6 4

4 7 ,2 8 4

2 ,2 6 2

1 ,5 2 6

491

1 ,9 5 9

1 ,8 9 4

5 0 ,5 8 6

1 3,5 93

9 ,4 0 1

1,2 3 4

8,888

1,6 5 2

5 ,4 5 0

4 ,5 6 6

3 ,0 1 9

1 4.765

818

334

9 ,2 7 3

1 ,095

8 ,1 4 5

296

1 94,630

145,439

3 ,2 6 6

3 ,8 3 0

7 ,2 2 3

13.765

2 ,6 7 0

7 5,7 56

849

2 ,9 8 7

1,942

2 0,0 87

3 ,7 2 5

17,778

1,5 3 8

2 ,0 0 6

9,5 1 2

2,0 3 3

100

1,1 6 8

4 6 ,2 0 5

2 ,2 6 2

1 ,5 2 6

217

1 ,8 7 0

1 ,8 9 4

2 4,9 03

3 ,9 3 2

4 ,3 8 3

539

3 ,9 5 3

1 ,6 5 2

828

1 ,392

818

334

7 ,2 4 0

215

8 ,1 4 5

33,1 28

1 3,286

1,421

1 ,552

2 ,3 4 5

1 1,053

1 ,3 6 8

1 4,3 40

136

2 ,8 6 2

1 ,6 2 0

1 8,428

3 ,3 7 5

7,6 5 2

2 ,0 0 6

5 ,9 6 6

2 ,1 8 5

596

1 ,0 7 8

274

2 5,6 84

9 ,6 6 2

5 ,0 1 8

694

4 ,9 3 4

5 ,4 5 0

3 ,7 3 8

3 ,0 1 9

13,372

2 ,0 3 3

296

161,502

132,153

1 ,8 4 5

2 ,2 7 8

4,8 7 7

2,7 1 2

1,3 0 2

6 1,4 16

714

126

322

1,6 5 8

350

10,127

1,5 3 8

3 ,5 4 5

2 ,0 3 3

1 ,0 8 9

984

1 1,773

529

1,2 4 2

300

1 ,6 2 0

1 ,4 9 3

2 8,4 46

6 ,1 9 7

3 ,8 7 5

974

5 ,4 5 5

668

2 ,3 4 6

3 ,1 0 9

1 ,5 6 4

7,3 6 2

640

257

6 .6 5 7

640

5 ,1 6 6

117

8 2,1 25

67,8 72

2 ,3 8 7

2 .6 5 7

2,0 9 7

9 ,2 5 6

1 ,948

51,291

274

2 ,4 1 2

1 ,278

12,946

3 ,4 4 5

7 ,9 0 6

935

1 ,458

7 ,1 8 8

202

94

841

1 0,911

529

1,2 4 2

203

1 ,551

1,4 9 3

2 0,4 64

3 ,0 9 6

2 ,8 0 4

482

3 ,3 2 9

668

735

1,212

640

257

6,011

186

5 ,1 6 6

2 6,4 68

1 0,836

1,1 5 6

1 ,397

1 ,610

7 ,9 4 5

10,133

136

2 ,3 8 8

1,1 6 4

1 2,196

3 ,2 5 9

3 ,5 1 0

1 ,4 5 8

5 ,0 9 6

995 1 91

144 8 48

861 421 138

35

8

97 3 13

69 33 33

29

7 ,9 8 2 288 791

3 ,101 39 384

1,071 46 113

492 5 72

2 ,1 2 6 44 201

10

2 ,3 4 6 665

2 ,3 7 4 9 371

1 ,5 6 4 1,0 3 0

6 ,1 5 0 39 760

17

5

646 99 77

453 6 21

46

117 8

55,6 57 161 2 0,154

5 7,0 36 32 10,847

1,231 23 179

1 ,259 24 203

488 7 44

1,311 180 104

962 11 81

4 1,1 59 75 9 ,5 2 4

138 10

23 26 9

114 28 25

750 402 114

186 21 22

4 ,3 9 6 211 505

935 512

11

2 ,0 9 2 54 417

202 19

1 Adjusted to Decem ber 3 1 ,1 9 6 5 . In assumption cases, refers to num ber of deposit accounts.

2 Excludes $199 thousand of non-recoverable insurance expenses in cases which were resolved without payment of claims or a disbursem ent to facilitate assumption of deposits by another insured bank, and

other expenses of field liquidation em ployees not chargable to liquidation activities.

3 Includes estim ated additional disbursem ents in active cases.

4 Excludes excess collections turned over to banks as additional purchase price at term ination of liquidation.

5 These disbursem ents are not recoverable by the Corporation; they consist almost wholly of field payoff expenses.

6 Includes advances to protect assets and liquidation expenses of $47,338 thousand, all of which have been fully recovered by the Corporation, and $248 thousand of non-recoverable expenses.

7 No case in 1962 required disbursem ents. 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 183

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Federal Reserve Bank of St. Louis
FOR PROTECTION OF DEPOSITORS, 1934-1965

(Amounts in thousands of dollars)

Table 125. RECOVERIES AND LOSSES BY THE FEDERAL DEPOSIT INSURANCE CORPORATION ON PRINCIPAL DISBURSEMENTS

Liquidation

status and

year of deposit payoff

or deposit

assumption

All cases

Number

of

banks

Principal

disbursements

Recoveries

to Dec.

3 1 , 1 9 6 5 !

Estimated

additional

recoveries

Losses2

Deposit payoff cases

Number

of

banks

Principal

disbursements3

Recoveries

to Dec.

3 1 , 1965

Estimated

additional

recoveries

Losses2

Deposit assumption cases

Number

of

banks

Principal

disbursements4

Recoveries

to Dec.

3 1 , 1965

Estimated

additional

recoveries

Total

Status

Active........

Terminated

Year5

193 4 

193 5 

193 6 

193 7 

193 8 

193 9 

194 0 

194 1 

194 2

194 3 

194 4 

194 5 

194 6 

194 7 

194 8

194 9 

19: 3 .....

195 1 

195 2

195 3 

195 4 

1955. ... 

1956.......

1 9 5 7 ....

195 8

195 9 

196 0 ....

196 1 ....

1 9 6 3 ...

196 4 ....

196 5 ....

350,181

1 02,856

247 ,32 4

941

8 ,8 9 0

14,781

1 9,1 60

3 0 ,4 8 0

6 7 ,7 7 0

7 4,1 34

2 3,8 80

1 0,825

7 ,1 7 2

1 ,5 0 3

1 ,7 6 8

265

1,7 2 4

2 ,9 9 0

2 ,5 5 2

3 ,9 8 6

1 ,8 8 5

1 ,3 6 9

5 ,0 1 7

913

6 ,7 8 4

3 ,3 3 3

1 ,031

3 ,0 2 6

1 ,8 3 5

4 ,7 6 5

6,201

1 9,222

12,571

9 ,4 0 9

300,541

7 8,5 97

2 21 ,94 5

734

6 ,1 8 6

1 2,3 26

15,611

2 8,0 55

60,6 17

7 0,241

2 3,2 90

10,137

7 ,0 4 8

1,4 6 2

1 ,7 6 8

265

1 ,6 2 8

2 ,3 4 9

2 ,1 8 3

2 ,601

1 ,792

577

5 ,0 1 7

651

6 ,5 5 4

3 ,0 3 8

1,031

2 ,9 9 8

1 ,7 2 2

4 ,7 6 5

4 ,5 0 7

14,4 04

6 ,8 1 0

177

9,564

9 ,5 6 4

149

3 ,1 6 8

3 ,1 0 9

2 ,8 5 7

40,076

14,696

25,3 80

207

2 ,7 0 4

2 ,455

3 ,5 5 0

2 ,425

7 ,153

3 ,773

591

688

123

72

641

369

1,385

3

792

260

230

260

105

1,546

1,650

2 ,652

6,375

21

254

9

24

42

50

50

32

19

8

6

4

151,650

5 6 ,1 9 8

95,452

941

6,026

8,056

12,045

9,092

26,196

4,895

1 2 ,2 7 8

1,612

5 ,5 0 0

404

115,583

3 4,6 34

8 0,9 49

734

4 ,2 7 4

6 ,5 9 5

9 ,5 2 0

7,9 0 8

2 0,399

4 ,3 1 3

12,065

1,320

5,3 7 6

363

4,438

2.795

1,031

2.796

1,835

4,765

6,201

19,222

12,571

8,952

4 ,2 0 8

2,5 0 0

1,031

2,7 6 8

1,722

4 ,7 6 5

4 ,507

1 4,404

6 ,8 1 0

9,271

9,271

149

3 ,1 6 8

3 ,1 0 9

2 ,802

26,796

12,294

14,503

207

1,751

1,4 6 0

2,5 2 4

1 ,184

5 ,7 9 8

582

213

292

123

40

230

260

105

1 ,5 4 6

1 ,6 5 0

2,6 5 2

6 ,1 5 0

184

10

174

198,531

4 6,6 58

151,873

2 ,8 6 5

6 ,7 2 5

7 ,1 1 6

2 1,3 87

4 1,5 74

6 9,2 39

1 1,602

9 ,2 1 3

1,672

1 ,0 9 9

1 ,7 6 8

265

1,724

2 ,9 9 0

2 ,5 5 2

3 ,9 8 6

1,8 8 5

1 ,3 6 9

5 ,017

913

2 ,3 4 6

538

184,959

4 3,9 63

140,996

1,911

5 ,7 3 0

6 ,0 9 0

2 0,147

40,2 19

6 5,9 28

11,225

8 ,8 1 6

1 ,672

1 ,099

1 ,768

265

1 ,628

2 ,3 4 9

2 ,1 8 3

2,601

1 ,792

577

5,017

651

2 ,3 4 6

538

230

293

120

13,280

2,4 0 3

10,877

953

995

1,0 2 5

1,241

1 ,355

3,1 9 0

378

396

72

641

369

1 ,3 8 5

3

792

260

457 177 225

1 Excludes in deposit assumption cases recovery of all advances for asset protection, totaling $32,875 thousand, and all liquidation expenses totaling $14,463 thousand.

2 Includes estim ated losses in active cases. Not adjusted for interest or allowable return, which was collected in some cases in which the disbursement was fully recovered.

3 Includes estim ated additional disbursem ents in active cases.

4 Excludes excess collections turned over to banks as additional purchase price at term ination of liquidation.

5 No case in 1962 required disbursem ents.

Note: Due to rounding differences, components may not add to totals.

184 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
INDEX

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187

Absorptions:

Of insured banks requiring disbursements by FDIC. See

Banks in financial difficulties.

Of operating banks, 1965______________________________________ 15-17, 100

Of operating banks approved by FDIC, 1965___________________ 15-17, 33-77

Regulation of_______________________________________________________ 15-17

Admission of banks to insurance:

Applications for, 1965_______________________________________________ 14-15

Different methods followed___________________________________________ 14

Number of banks admitted, by class of bank, 1965_____________________ 117

Applications from banks_________________________________________________ 14-15

Areas outside continental United States, banks and branches located in:

Assets and liabilities, December 31, 1965__________________________ 134-135

Average assets and liabilities, insured commercial banks, 1965_____146-147

Deposits, December 31, 1965______________________________________ 126-127

Earnings, expenses, profits, and dividends, 1965__________________ 164-165

Number, December 31, 1965_________________________ 118, 125-127, 134-135

Assessments for deposit insurance_______________________________________ 26-30

Assets, liabilities, and capital of banks (see also Deposits):

All banks:

Amounts and percentage change, 1961, 1964 and 1965____________ 102

By FDIC district and State, December 31, 1965________________ 134-135

Changes in 1965_____________________ _________________________ 102

Commercial banks, June 30, and December 31, 1965___________ __ 130-133

In banks grouped according to insurance status and type of

bank, June 30, and December 31, 1965_____________________ 130-133

Insured banks, June and December call dates, 1962 through

1965 _________________________ ______ _______________ .136-139

Insured commercial banks:

Amount, call dates, December 20, 1963 through December

31, 1965_____ ..... _________________________________________ 140-143

Average for 1965, by class of bank____ _______________________ 144

Average for 1965, by State____________________________________ 146-147

Percentage distributions, average for 1965, by class of bank______ 144

Percentage distributions, December and June call dates,

1963 through 1965__________________________________________140-143

Percentage distributions of totals among size groups of banks,

December 31, 1965___________________________________________ 145

Ratios of selected items to total assets, by size of bank,

December 31, 1965________ ______ ___ ______ ___148-149

Insured mutual savings banks:

Amount, and percentage distributions, December and June

call dates, 1963 through 1965______________________________ 140-143

Major categories, average, 1957-1965____________________________ 175

INDEX Page

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Federal Reserve Bank of St. Louis
1 8 8 FEDERAL DEPOSIT INSURANCE CORPORATION

Page

Assets, liabilities, and capital of banks (see also Deposits) — Continued

Mutual savings banks:

Banks grouped by insurance status, June 30, and December

31, 1965_______________ _______ ____________________ 130-133

Sources of data______ 129, 151, 179

Assets and liabilities of FDIC___________ .... ______ 25-27

Assets pledged to secure bank obligations________ ___ .139, 143

Assets purchased by FDIC from banks in financial difficulties____ 13, 26, 29, 179

Assumption of deposits of insured banks with financial aid of FDIC

(see also Banks in financial difficulties)____________________ 10-13, 179, 181-184

Attorney General of the United States, summary reports on absorptions___ 33-77

Audit of FDIC________________________________________________________ 24, 29-31

Bad-debt reserves. See Valuation reserves.

Bank Merger Act of 1960__________ _____________ _______ ___15-17

Bank practices. See Unsafe and unsound banking practices.

Bank supervision. See Supervision of banks; Examination of insured banks.

Banking Acts of 1933 and 1935_______ .... 3-4, 9, 13

Banking data, classification of:

Assets and liabilities of banks_______________________________________ 129

Deposit insurance disbursements____________________________________ 179

Income of insured banks____________________________________________ 151

Number, offices, and deposits of banks____________________________ 114-115

Banking offices, number of. See Number of banks and branches.

Banks, applications from, acted on by FDIC__________________ ____ _____ 14-15

Banks in financial difficulties:

Insured banks requiring disbursements by FDIC:

Deposit size of_________________________________________________ 182

Deposits protected, 1934-1965_____ . _____________11, 180, 182-183

Disbursements by FDIC, 1934-1965__________________ 4, 10-13, 179-184

Loans made and assets purchased by FDIC_______________________12-13

Location by State, 1934-1965 ___________________ 183

Losses incurred by FDIC____________ _______ 7, 10, 12-13, 184

Losses incurred by depositors___________ _______________ 11

Name and location of, 1965___________________________________ 10, 181

Number of, 1934-1965___________________________________4, 10-12, 180

Number of deposit accounts, 1934-1965 ____ ______ 182-183

Recoveries by FDIC on assets acquired, 1934-1965_________ 12-13, 184

Noninsured banks:

Deposits of commercial banks closed, by year, 1934-1965_________ 180

Sources of data________________________________________________ 179

Suspensions, 1965__________________________________________ 116, 179

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.

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Federal Reserve Bank of St. Louis
INDEX 189

Page

Branches (see also Number of banks and branches):

Establishment approved by FDIC, 1965______________________________ 14-15

Examination of, 1964 and 1965 ________ ____________________________ 17

Increase, branches of all banks, 1965_____ ___________________ 5, 100, 117

Regulation of________________________________________________________ 100

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.

Capital notes and debentures_____________________________________________ 106

Certificates of deposit (see also Deposits)_______________________________ 6, 105

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:

Admissions to and terminations of insurance________________________116-117

Assets and liabilities of all banks____________________________ 132-133, 144

Income of insured commercial banks, 1965_________________________156-157

Insured banks requiring disbursements by FDIC, 1934-1965___________ 182

Number of banks and banking offices, 1965________________98, 101, 116-127

Ratios of income of insured commercial banks, 1965....._____________158-159

Classification of banks_____________________________________________98, 114-115

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 General cf the United States _________________ ______________ 31

Comptroller of the Currency.... _____________________ IV, V, 8, 14, 24, 97, 99-100

Computer systems, uses of ___________________________________________ 7-8

Conferences of supervisors of State banks _____________________________ 21

Consolidations. See Absorptions.

Control of banks, changes in ________________ __ ____________________ __ 97-98

Credit, bank. See Assets, liabilities, and capital of banks.

Demand deposits. See Assets, liabilities, and capital of banks; Deposits.

Deposit insurance coverage___________________________________________8-9, 31

Deposit insurance national banks____ ________ . .. . ________12-13

Deposits of:

All banks:

By insurance status of bank and type of account, December 31,

1965 ___ __ ___ ____ __________ ____ _ ______________________ 133

By insurance status of bank and type of account, June 30, 1965____ 131

By type of account in each State and FDIC district, December 31,

1965 ________________________ „ _______ ____________ .............134-135

By type of bank in each State and FDIC district, December 31,

1965 ______________________ ______________________________ 126-127

Deposit growth ___________________ ______________________ 104

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190 FEDERAL DEPOSIT INSURANCE CORPORATION

Page

Deposits of — Continued

All insured banks:

By type of account, December 31, 1965 ___________________________ 133

By type of account, call dates, June 30, 1962, through December

31, 1965 ____________________________________ ________________ 138

Ratios of deposit insurance fund to, 1934-1965 _ ... 26n, 31

Commercial banks:

By FDIC district and State, December 31, 1965 _______________ 126-127

By type of account, December 31, 1965 . .... ____________________ 133

By type of account, June 30, 1965. ......__________________________ 131

Insured banks requiring disbursements by the Corporation. See Banks 

in financial difficulties.

Insured commercial banks:

By type of account, call dates, December 20, 1963, through December 31, 1965 ______________________________________________ 140

Percentage distributions of selected totals among size groups of

banks, December 31, 1965_______________ _____________________ 145

Insured mutual savings banks:

By FDIC district and State, December 31, 1965_________________126-127

By type of account, call dates, December 20, 1963, through

December 31, 1965 ___________________________________________ 140

Interest and dividends on, 1957-1965_____________________________ 174

Mutual savings banks:

By FDIC district and State, December 31, 1965_________________ 126-127

By type of account, June 30, and December 31, 1965___________ 131, 133

Noninsured banks:

By FDIC district and State, December 31, 1965________________ 126-127

By type of account and type of bank, June 30, and December

31, 1965 ____________________________________________________131, 133

Sources of data concerning_________________________________________ 129

State legislation concerning________________________________________ 87-93

Deposits, insured by FDIC, 1934-1965____________________________________ 31

Directors of FDIC. See Federal Deposit Insurance Corporation.

Disbursements. See Banks in financial difficulties.

Dividends:

To depositors in insured mutual savings banks______ 110-111, 174, 176-177

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 conditions ____________________________________________________ 102

Educational program for bank examiners_________________________________ 25

Employees:

FDIC ______________________________________________________________23-25

Insured commercial banks:

Number and compensation, 1957-1965___________________________ 152-153

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Number and compensation, by class of bank, by size of bank, and

Page

Employees - Insured commercial banks — Continued

Insured mutual savings banks, number and compensation________ 174-175

Examination of insured banks:

Banks examined by FDIC, 1965________________________________17-18, 97-99

District offices and supervising examiners____________________________ VI

Examiners school ___________________________________________________ 25

Powers granted to supervisory authorities______________ 4-5, 8, 17-18, 97-99

Expenses of banks. See Income of insured commercial banks; Income of 

insured mutual savings banks.

Expenses of FDIC_______________________________________________________ 27-30

Failures. See Banks in financial difficulties.

Federal bank supervisory authorities_________________________ 3-5, 14-20, 97-99

Federal Deposit Insurance Act (see a/so Legislation relating to deposit

insurance and banking)_____ ______________________________________9, 18, 26n

Federal Deposit Insurance Corporation (FDIC):

Actions on applications_____________________________________________ 14-19

Assessments on insured banks______________________________________ 25-30

Assets _____________________________________________________________25-27

Audit ______________________________________________________________29-31

Banks examined by, and submitting reports to_______________ 3, 17-20, 97-99

Borrowing power ________________________________________________ 26n, 29

Capital stock _______________________________________________________ 26n

Computer system ____________________________________________________ 7-8

Coverage of deposit insurance, banks participating____ 8-9, 97-99, 116-127

Deposit insurance fund (surplus)_______________________________ 26n, 26-31

Directors (members of the Board)_________________________________ V, 23-24

Disbursements for protection of depositors__________________ 9-13, 179-184

Districts ____________________________________________________________ VI

Divisions _________________________________________________________ IV, 24

Educational program for bank examiners____________________________ 25

Employees _____________________________ ___________________________ 23-25

Examination of banks_____________________________________ VI, 17-18, 97-99

Financial statements, 1965_________________________________________ 26-29

Income and expenses, 1933-1965____________________________________ 29-30

Insured banks requiring disbursements by. See Banks in financial 

difficulties.

Liabilities _________________________________________________________ 25-26

Loans to, and purchase of assets from, insured banks__________ 179, 182-183

Losses incurred, 1934-1965____________________________________ 12-13, 184

Methods of protecting depositors_________________________________9-13, 179

Organization and staff_________________________________________IV-VI, 23-25

Payments to insured depositors_____________________________________ 9-13

Protection of depositors____ _____ ____________________________ 9, 182-183

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192 FEDERAL DEPOSIT INSURANCE CORPORATION

Federal Deposit Insurance Corporation (FDIC) — Continued

Recoveries ______ _.... __ . .... ______ _________13, 184

Reports from banks_____ -.... ... ___________ .... ... _____ ___ 18-21, 97-98

Reserve for losses on assets acquired___ _________________________ 26-27

Retirement of capital stock________..... ______ _________ ._________ 26n

Rules and regulations________ ___ _____ __ 22-23, 84-85

Sources and uses of funds _____ _________ _______.___________ 29

Supervisory activities .... _______ ..._ .. _ _.____14-21, 97-99

FDIC districts, banking data classified by:

All banks:

Assets and liabilities, December 31, 1965 .... ..... ____ ___________ 134

Number and deposits, by type of bank, December 31, 1965 _____ 126

Federal funds _________________________________ ____________ ___________ 106

Federal Reserve authorities___________________ _____________ 14-20, 97-99

Federal Reserve member banks. See Class of bank, banking data

presented by.

General Accounting Office______________________________________________ 31

Income of FDIC_____________________________________ ________ __________ 27-30

Income of insured commercial banks:

Amounts of principal components:

Annually, 1957-1965 ___________________ _________152-153

By class of bank, 1965 ___________________________ _________156-157

By size of bank, 1965____ _______ _________ _________160-161

By State, 1965_________ ____________________________ _________164-173

Classification of income data___________ ___________ 151

Income, sources and disposition of total . 106-108

Ratios of income items:

Annually, 1957-1965 ________ _______________________ _________154-155

By class of bank, 1965______________________________ _________158-159

By size of bank, 1965________________________ ____ ________ 162-163

Selected operating ratios, 1950-1965_____________________ __________ 108

Sources of data____________________________________________________ 151

Income of insured mutual savings banks:

Amounts of principal components, 1957-1965____________ _________174-175

Income, sources and disposition of total________________ ___________ 110

Ratios of income and expense items, 1957-1965___________ _________176-177

Sources of data____________________________________________________ 151

Insolvent banks. See Banks in financial difficulties.

Insurance of bank obligations________________________________ ______ 3, 8-9, 29

Insurance status, banks classified by:

Assets and liabilities of, June 30 and December 31, 1965 _________130-133

Changes in number of, 1965______________________________ 116-117, 158-159

Deposits of, June 30 and December 31, 1965____________ _________ 131-133

Number of, December 31, 1965__________________________ 98, 116-127

Percentage of banks insured, by State, December 31, 1965._________118-125

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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.

Internal Revenue Service ruling on reserves for losses

on loans ________________________________________________ 23, 85-87, 109-110

Investments. See Assets, liabilities, and capital of banks; Assets and liabilities of FDIC; Banks in financial difficulties.

Law, violations of by insured banks_____________________________________ 18-19

Legislation relating to deposit insurance and banking:

Federal, enacted in 1965_________________________________21-22, 81-84, 97

Relating to bank supervision_________________________________15-19, 97-98

State, enacted in 1965______________________________________________ 87-93

Loans. See Assets, liabilities, and capital of banks; Banks in financial 

difficulties.

Loans, growth of, 1960-1965______________________________________ 6-7, 102-103

Losses:

Of banks. See Income of insured commercial banks; Income of Insured 

mutual savings banks.

Of FDIC ___________________________________________________10, 12-13, 184

On loans, reserves for. See Valuation reserves.

Provision for, in insured banks, 1957-1965________________ 152-153, 174-175

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, 1965_________________________________________________ 100, 116-117

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)_____________ 8-9

Number of banks and branches:

Banking offices (banks and branches):

By insurance status, type of bank, and State, December 31, 1965__118-125

Changes in specific years______________________________ ____ 5-6, 100-101

Changes during 1965______________________________________ 100-101, 117

Banks:

Banks having branches, by insurance status, type of bank, and State,

December 31, 1965 __________________________________________118-125

By insurance status and type of bank, December 31, 1965„__98-99, 117, 133

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Number of banks and branches — Continued

By insurance status, type of bank, FDIC district and State, December

31, 1965 _____________________________________________________ 126-127

Changes during 1965_______________________________ __________100, 117

Branches:

By insurance status, type of bank, and State, December 31, 1965__118-125

Changes during 1965__________________________________________ 100, 117

Regulation of _____________________________________________ 5-6, 100-101

Insured commercial banks:

December 31, 1957-1965_________ _______ _____________________ 153, 155

December 31, 1965, by class of bank, deposit size of bank,

and State_________________________________________157, 161, 171, 173

Distributed by capital ratios and distribution of assets, December

31, 1965 __ _________________________________________________ 148-149

Insured mutual savings banks, 1957-1965_________________________ 175-177

Mutual savings banks, December 31, 1965_____________________98, 117-127

Noninsured banks, December 31, 1965_________________________ 98, 117-127

Unit banks, by insurance status and State, December 31, 1965_____ 118-125

Obligations of banks. See Assets, liabilities, and capital of banks; Deposits.

Officers of insured banks. See Employees.

Officials of FDIC_________________________________________ ____ _______V, 23-24

Operating banks. See Number of banks and branches.

Payments to depositors in closed insured banks. See Banks in financial 

difficulties.

Personnel. See Employees.

Possessions, banks and branches located in. See Areas outside continental 

United States, banks and branches located in.

Protection of depositors. See Banks in financial difficulties.

Receivership, insured banks placed in. See Banks in financial difficulties. 

Recoveries:

By banks on assets charged off. See Income of insured commercial 

banks; Income of insured mutual savings banks.

By FDIC on disbursements. See Banks in financial difficulties.

Reports from banks .. ______________________________________ 18-21, 97-98

Reserves:

Of FDIC, for losses on assets acquired_____________________________26-27

Of insured banks for losses on assets. See Valuation reserves.

With Federal Reserve Banks. See Assets, liabilities, and capital of banks. 

Salaries and wages:

FDIC _______________________________________________________________ 27

Insured banks. See Income of insured commercial banks; Income of 

insured mutual savings banks.

Savings and time deposits. See Deposits (items referring to type of account). 

Securities. See Assets, liabilities, and capital of banks; Assets and liabilities 

of FDIC; Banks in financial difficulties.

Securities, registration and reporting of bank____________________________ 18-20

194 FEDERAL DEPOSIT INSURANCE CORPORATION

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Page

Size of bank, data for banks classified by amount of deposits:

Assets and liabilities, insured commercial banks, 1965 _____________ 145

Banks requiring disbursements by FDIC, 1934-1965 ________________ 182

Disbursements for protection of depositors, 1934-1965 __________ 182

Income data of insured commercial banks, 1965_______________ __160-161

Income ratios of insured commercal banks, 1965 _____ .162-163

Number of employees of insured commercial banks, 1965_____________ 161

Number of insured commercial banks, 1965... ... _________ 161, 163

Number of insured commercial banks, grouped by ratios of selected 

items to assets, December 31, 1965 148-149

State, banking data classified by:

Assets and liabilities of banks, December 31, 1965________________134-135

Deposits of banks, by class of bank, December 31, 1965___________ 126-127

Disbursements, deposits, and depositors in insured banks requiring

disbursements by FDIC, 1934-1965_______________________________ 183

Income of insured commercial banks, 1965_____ ________________ 164-173

Number of banks and branches, by class of bank and type of office,

December 31, 1965 . _. _______________________ __________ 118-125

Percentage of banks insured, December 31, 1965 . ________ 118-125

State banking legislation enacted in 1965_________________ ___________ 87-93

State banks. See Class of bank, banking data presented by.

Stock ownership of banks, changes in.... ______________________________ 97-98

Stockholders of banks, net profits available for. See Income of insured commercial banks.

Supervision of banks (see also Examination of insured banks):

By FDIC ______________________________________ _________VI, 14-21, 97-99

Federal and State supervision..........___________________________ 4-5, 97-99

State legislation, 1965____ _______________________________________ 87-93

Supervisory status of banks------------------------ -------- ------------------------- 97-101

Suspensions. See Banks in financial difficulties.

Taxes paid by insured banks. See Income of insured commercial banks; 

Income of insured mutual savings banks.

Terminations of insurance for unsafe and unsound practices____________ 18-19

Time and savings deposits. See Deposits (items referring to type of account).

Trust companies, classification of_____ ...__________________ 98, 115

Trust powers, applications fo r__ ..... _________ _____________________ 15

Unit banks, by insurance status and State, December 31, 1965__________ 118-125

Unsafe and unsound banking practices________________________________ 18-19

Valuation reserves (see also Assets, liabilities, and capital of banks):

Amounts held, June and December call dates, 1962 through 1965_____ 137

Amounts held, June 30 and December 31, 1965______________130, 132, 141

Internal Revenue Service ruling, change in concerning__________ 23, 85-87

Number of banks reporting reserves under Internal Revenue Service

rulings, December 31, 1961-1965___________________________________ 109

Changes, 1957-1965 ____________________________________ 152-153, 174-175

Violations of law or regulations, banks charged with______________________18-19

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