1979 ANNUAL REPO : THE

FEDERAL DEPOSIT INSURAIS )RPO

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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
Ill

Board o f D irectors

John G. Heimann Irvine H. Sprague

Comptroller of the Currency Chairman

William M. Isaac

Director

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Federal Reserve Bank of St. Louis
LETTER OF TRANSMITTAL

FEDERAL DEPOSIT INSURANCE CORPORATION 

Washington, D.C., August 1, 1 980

SIRS: In accordance with the provisions of section 17(a) of the 

Federal Deposit Insurance Act, the Federal Deposit Insurance Corporation is pleased to submit its annual report for the calendar year

1 979.

Very truly yours,

Irvine H. Sprague

Chairman

THE PRESIDENT OF THE SENATE

THE SPEAKER OF THE HOUSE OF REPRESENTATIVES

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Federal Reserve Bank of St. Louis
VI

FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION

VII

BOARD OF DIRECTORS

Chairman ............................................................................... Irvine H. Sprague

Director.....................................................................................William M. Isaac

Comptroller of the Currency................................................ John G. Heimann

WASHINGTON OFFICE

Deputy to the Chairman...............................................................Alan R. Miller

Assistant to the Director...............................................................Edwin B. Burr

Special Assistant to the D irector......................................... Merphil S. Kondo

Assistant to the Director (Comptroller of the

Currency).................................................................................David C. Motter

Executive Secretary...............................................................Hoyle L. Robinson

Director: Division of Bank Supervision......................................... John J. Early

General Counsel................................................................. Frank L. Skillern, Jr.

Controller................................................................................... James A. Davis

Director: Division of Liquidation.................................................George W. Hill

Director, Division of Management Systems

and Financial Statistics.................................................... George G. Kershaw

Director of Research........................................................Stanley C. Silverberg

Director, Congressional Liaison S taff...................................... Kenneth Fulton

Director, Office of Corporate A u d its .................................. Robert D. Hoffman

Director, Office of Consumer Affairs

and Civil Rights.................................................................. Henry S. Newport

Director, Office of Personnel Management...........................Jack C. Pleasant

Director, Office of Employee Relations........................................Joe S. Arnold

Assistant to the Deputy to the Chairman......................... Michael A. Hovan, Jr.

December 31,1 979

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

Regional Directors

Atlanta

Lewis C. Beasley

233 Peachtree Street, N.E., Suite 2400 

Atlanta, Georgia 30043 

Boston 

Anthony S. Scalzi 

60 State Street, 1 7th Floor 

Boston, Massachusetts 02109 

Chicago 

W. Harlan Sarsfield 

233 S. Wacker Drive, Suite 6116 

Chicago. Illinois 60606 

Columbus 

Robert V. Shumway 

1 Nationwide Plaza, Suite 2600 

Columbus, Ohio 4321 5 

Dallas 

Quinton Thompson 

350 North St. Paul Street, Suite 2000 

Dallas, Texas 75201 

Kansas City 

Joseph V. Prohaska 

2345 Grand Avenue, Suite 1 500 

Kansas City, Missouri 64108 

Madison 

James E. Halvorson 

1 South Pinckney Street, Room 813 

Madison, Wisconsin 53703

Memphis 

Roy E. Jackson

1 Commerce Square, Suite 1800 

Memphis, Tennessee 38103 

Minneapolis 

Robert P. Gough

730 Second Avenue South. Suite 266 

Minneapolis, Minnesota 55402 

New York

Bernard J. McKeon 

345 Park Avenue. 21 st Floor 

New York, New York 10154 

Omaha 

Burton L. Blasingame 

1 700 Farnam Street, Suite 1 200 

Omaha, Nebraska 68102 

Philadelphia 

James L. Sexton 

5 Penn Center Plaza, Suite 2901 

Philadelphia, Pennsylvania 19103 

Richmond 

John R. Curtis 

Eighth and Main Bldg 

707 East Main Street 

Richmond, Virginia 2321 9 

San Francisco 

Charles E. Doster

44Montgomery Street, Suite 3600 

San Francisco. California 94104

December 31.1979

FEDERAL DEPOSIT INSURANCE CORPORATION

M a in O ffic e : 5 5 0 1 7 th S tr e e t. N .W ., W a s h in g to n . D C. 2 0 4 2 9

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Federal Reserve Bank of St. Louis
IX

CONTENTS 

PART ONE 

OPERATIONS OF THE CORPORATION

Operations of the Corporation.................................................................... 3

Enforcement Proceedings.......................................................................... 10

Problem Banks............................................................................................. 12

Failed Banks................................................................................................. 14

Consumer and Civil Rights Protection....................................................... 19

Interest Rate Developments........................................................................ 22

International Banking.................................................................................. 24

Reports and Surveys................................................................................... 26

Bank Security............................................................................................... 26

Securities Activities...................................................................................... 27

Legal Activities............................................................................................. 28

Research Activities....................................................................................... 29

Computer Management Systems............................................................... 30

Special Services........................................................................................... 31

Personnel..................................................................................................... 32

Finances of the Corporation........................................................................ 34

PART TWO 

ENFORCEMENT PROCEEDINGS

Actions to terminate insured status ........................................................... 49

Cease-and-desist actions............................................................................ 50

PART THREE 

MERGER DECISIONS OF THE CORPORATION

Bank absorptions approved by the Corporation........................................ 63

Bank absorption denied by the Corporation............................................... 1 27

PART FOUR 

REGULATIONS AND LEGISLATION

Legislation— 1 97 9 ....................................................................................... 131

Rules and regulations.................................................................................. 131

PART FIVE

STATISTICS OF BANKS AND DEPOSIT INSURANCE

Number of banks and branches................................................................. 138

Assets and liabilities of banks..................................................................... 1 59

Income of insured banks............................................................................. 186

Banks closed because of financial difficulties; FDIC income,

disbursements, and losses....................................................................... 201

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X

TABLES

NUMBER OF BANKS AND BRANCHES:

Explanatory notes......................................................................................... 138

101. Changes in number and classification of banksand branches in the United

States (States and other areas) during 1979 ............................... 140

102. Changes in number of commercial banksand branches in the United

States (States and other areas) during 1979, by S tate............... 142

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

areas), December 31, 1979

Banks grouped by insurance status and class of bank, and by State

or area and type of o ffic e............................................................ 144

104. Number and assets of all commercial and mutual savings banks in the

United States (States and other areas), December 31, 1979

Banks grouped by class and asset size...................................... 153

105. Number, assets, and deposits of all commercial banks in the United

States (States and other areas), December 31, 1979

Banks grouped by asset size and State...................................... 154

ASSETS AND LIABILITIES OF BANKS:

Explanatory note............................................................................................ 159

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

(States and other areas), June 30, 1979

Banks grouped by insurance status and class of b a n k ............. 161

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

(States and other areas), December 31, 1979

Banks grouped by insurance status and class of b a n k ............. 164

108. Assets and liabilities of all mutual savings banks in the United States

(States and other areas), June 30, 1 979, and December 31, 1979 

Banks grouped by insurance status........................................... 168

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

(States and other areas), December call dates, 1974-1979......... 170

110. Assets and liabilities of insured commercial banks (domestic and

foreign offices). United States and other areas, 1973-1977 ....... 173

110A. Assets and liabilities of insured commercial banks (domestic and foreign

offices). United States and other areas, December 31, 1 978 __ 174

110B. Assets and liabilities of insured commercial banks (domestic and foreign

offices). United States and other areas, December 31, 1979 ___ 176

111. Assets and liabilities of insured mutual savings banks in the United

States (States and other areas), December call dates, 1974-1979 1 78

112. Percentages of assets, liabilities, and equity capital of insured

commercial banks operating throughout 1979 in the United States 

(States and other areas), December 31,1979

Banks grouped by amount of assets.......................................... 180

11 3. Percentages of assets and liabilities of insured mutual savings banks 

operating throughout 1979 in the United States (States and other 

areas,) December 31, 1979

Banks grouped by amount of assets.......................................... 181

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

and other areas), December 31, 1979........................................... 183

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INCOME OF INSURED BANKS:

Explanatory note........................................................................................ 186

1 1 5. Income of insured commercial banks in the United States (States

and other areas), 1 974-1 979 ...................................................... 1 89

1 1 6. Ratios of income of insured commercial banks in the United States

(States and other areas), 1 974-1 979 .......................................... 191

1 17. Income of insured commercial banks in the United States (States 

and other areas), 1 979

Banks grouped by class of bank............................................... 192

1 1 8. Income of insured commercial banks operating throughout 1 979 in 

the United States (States and other areas)

Banks grouped by amount of assets........................................ 194

1 1 9. Ratios of income of insured commercial banks operating throughout 1 979 in the United States (States and other areas)

Banks grouped according to amount of assets........................ 196

1 20. Income of insured mutual savings banks in the United States (States

and other areas), 1 974-1 979 ...................................................... 197

121. Ratios of income of insured mutual savings banks in the United

States (States and other areas), 1 974-1 979 ............................... 199

BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES:

FDIC INCOME DISBURSEMENTS, AND LOSSES

Explanatory note........................................................................................ 201

1 22 Number and deposits of banks closed because of financial difficulties, 1934-1979 ............................................................................ 203

123. Insured banks requiring disbursements by the Federal Deposit

Insurance Corporation during 1979 ........................................... 204

1 24. Depositors, deposits, and disbursements in failed banks requiring 

disbursements by the Federal Deposit Insurance Corporation, 

1934-1979

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

deposit assumption, amount of deposits, and State............... 205

125. Recoveries and losses by the Federal Deposit Insurance Corporation on principal disbursementsfor protection of depositors 1934-1979 208 

1 26. Analysis of disbursements, recoveries, and losses in deposit insurance transactions, January 1, 1 934-December 31, 1979 ......... 209

127. Income and expenses, Federal Deposit Insurance Corporation, by 

year, from beginning of operations, September 1 1, 1933, to

December 31, 1 979 .................................................................... 210

1 28. Protection of depositors of failed banks requiring disbursements by

the Federal Deposit Insurance Corporation, 1 934-1 979 ........... 211

1 29. Insured deposits and the deposit insurance fund, 1 934-1 9 7 9__ 212

XI

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Federal Reserve Bank of St. Louis
3

OPERATIONS OF

THE CORPORATION

The principal objectives of the Federal Deposit Insurance Corporation 

are to protect bank customers through 

deposit insurance and consumer protection programs and to promote a 

healthy banking system.

Bank examinations are the front 

line of the FDIC's operations to promote and maintain the safety and 

soundness of the banking system 

and to enforce compliance with consumer and civil rights laws.

The FDIC has some supervisory 

authority over all federally insured 

banks, but its primary responsibilities are for the 8,938 insured Statechartered banks that are not members of the Federal Reserve System 

(insured State nonmember banks) 

and 324 insured mutual savings 

banks. As of December 31, 1979, 

there were 14,608 insured commercial and mutual savings banks 

with domestic and foreign assets of 

$1.7 trillio n . These banks accounted for 97 percent of all banks 

in the United States.

The Corporation's partner agencies, the Office of the Comptroller of 

the Currency (OCC) and the Board of 

Governors of the Federal Reserve 

System, similarly examine national 

banks and State member banks, respectively.

The FDIC depends on a corps of 

skilled, dedicated and well trained 

field examiners to perform the basic 

supervisory function. They are supported by administrative, policy and 

review officials in its Division of 

BankSupervision (DBS) in Washington.

Funding for these operations in 

1979 commanded the largest share 

of the FDIC administrative budget — 

$78.1 million, or 68 percent of total 

expenditures of $107.1 million.

The bulk of bank supervision fundSUPERVISORY CLASSES OF BANKS IN THE

UNITED STATES, DECEMBER 31, 1979

Com m ercial Banks and M utual Savings Banks

NUMBER OF BANKS ASSETS OF BANKS

State M ember FRS 6

State M em ber 16.0%

Not Insured by 

FDIC 2.8%

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4 FEDERAL DEPOSIT INSURANCE CORPORATION

ing is distributed appropriately to 

the field. Almost $67.9 million was 

expended in 1979 by the 14 Regional Offices which in turn supervise 1 50 field examination offices.

The Corporation conducted 19,900 

bankexamination activities in 1 979. 

The following table compares the

1 978 and 1979 examination workload:

1978 1979

Bank Examination Activities:

Safety & Soundness 6,961 7,214

Consumer Protection 6.684 4,809

Examinations of Trust

& EDP Departments 2,092 2,523

Investigations 2,755 2,892

Applications 1,756 2,476

TOTAL 20.248 19.914

Efforts to make the most efficient 

use of examiner time include new 

emphasis on the divided examination concept. The FDIC has agreements to share examination resources with State bank supervisors in 

Georgia, Missouri, New Jersey, Illinois, Michigan and North Dakota, 

and expects to enter into agreements with three additional States in 

1980. Such agreements can mean 

substantial savings in examiner time 

because they provide that each authority need examine each year only 

half of those banks whose records 

show need of only minimal supervision. Problem banks, other banks in 

need of special supervision, and large 

banks are examined both by the 

FDIC and the bank's State supervisor at least once each year.

Safety and Soundness Examinations. The first priority of FDIC examinations is the effective surveillance 

and supervision of banks having financial weaknesses or operating problems. Banks presenting financial risk 

to the Corporation receive a fullscope examination at least once 

every 1 2 months. Banks with a lesser degree of supervisory problems, 

but in less than fully satisfactory

condition, receive a full-scope examination at least every 18 months. 

Other banks, not representing financial or supervisory concern to the 

FDIC, receive either a full-scope or 

modified examination at least once 

in each 18 month period.

To increase and encourage bank 

director participation in the supervisory process. Corporation examiners meet with either the Board of 

Directors or an appropriate Committee of the Board at each full-scope 

examination, or more often if necessary. The Regional Director, or a designated representative, participates in 

these meetings if the bank is or may 

be formally designated a problem 

bank.

The FDIC also reviews OCC and 

Federal Reserve Reports of Examination fo r national and Statechartered banks that are members 

of the Federal Reserve System. Reports for large banks that are not of 

special supervisory concern are reviewed annually and reports for smaller banks are reviewed at least once 

every three years. Examination reports of banks that are of supervisory concern, regardless of size, are 

reviewed as soon as they are made 

available. The FDIC also reviews Reports of Bank Holding Company Inspection prepared by the Federal 

Reserve.

Compliance Examinations: Corporation responsibility centers on enforcement of consumer protection 

and civil rights laws for State nonmember banks, including the Truth 

in Lending Act, the Fair Credit Reporting Act, the Fair Housing Act, 

the Home Mortgage Disclosure Act, 

the Fair Debt Collection Practices 

Act, the Community Reinvestment 

Act, the Electronic Funds Transfer 

Act, the Equal Credit Opportunity 

Act and others.

Violations or exceptions noted during compliance examinations are reported to the banks involved and 

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OPERATIONS OF THE CORPORATION 5

gional Offices to assure corrective 

action is taken. If voluntary compliance cannot be obtained by moral 

suasion and additional follow-up examinations, visits, meetings with 

Boards of Directors of the banks 

involved or other informal means, 

the Division of Bank Supervision 

(DBS) or the Office of Consumer 

Affairs and Civil Rights (OCACR) 

may recommend thatformal enforcement action under Section 8(b) of 

the FDI Act be initiated. During 

1 979, the FDIC's Board of Directors 

issued seven such orders involving 

violations of consumer protection or 

civil rights laws and regulations.

This was the second full year of 

separate compliance examinations 

and the resources devoted to such 

examinations is expected to continue to increase in 1 980. The Corporation spent $ 1 2 million for compliance enforcement in 1 979, compared with $9.7 million in 1978and 

$2.25 million in 1 976.

There were 4,800 compliance examinations in 1 979, a decline from

6,700 in 1978 as examiners and 

institutions adjusted to uniform enforcement guidelines which were 

introduced in 1 978.

Each complianceexamination averaged 56 hours in 1979, almost 

double the 1978 average. This is 

expected to climb to 70 hours in 

1980.

The FDIC expects to spend 

387,000 examiner hours on compliance examinations in 1 980, a 60 

percent increase from 1 979. Truthin-Lending enforcement will acBANK EXAM INATION ACTIVITIES OF

THE FEDERAL DEPOSIT INSURANCE CORPORATION

IN 1978 AN D 1979

Activity

1979

Number

1978

Bank examination activities— total.................................... 19,914 20,248

Safety and soundness examinations.............................. 7,214 6,961

Regular examination of insured banks not

members of Federal Reserve System......................... 6.887 6.745

Re-examinations.............................................................. 127 149

Other exam inations........................................................ 200 67

Consumer protection exam inations................................. 4,809 6,684

Examinations of departm ents........................................... 2,523 2,092

Trust departm ents............................................................. 1.510 1.387

Data-processing fa c ilitie s ................................................ 1.013 705

Investigations....................................................................... 2,892 2,755

Application review s.............................................................

New banks: State banks members of

2,476 1,756

Federal Reserve System.................................................

New banks: Banks not members of

30 26

Federal Reserve System................................................. 164 136

New branches.................................................................... 1,177 877

Mergers and consolidations........................................... 147 103

O th er.................................................................................... 958 614

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6 FEDERAL DEPOSIT INSURANCE CORPORATION

count for about half of that time, up 

from 44 percent in 1979. Equal 

Credit Opportunity Act and Community Reinvestment Act enforcement will each take another 1 5 percent of compliance examination time 

and Fair Housing Act enforcement 

10 percent.

All examiners receive special training in the conduct of compliance 

examinations. In 1979 compliance 

and enforcement programs were 

strengthened by creating a career 

specialty for compliance examiners. 

Atyear-end, 46 of the 1 14 approved 

positions were filled. Eventually, all 

compliance examinations will be conducted by career specialists. A reorganization plan was under study at 

year-end to further strengthen FDIC's 

efforts in the consumer area.

Trust Department Examinations. A 

State nonmember bank wishing to 

operate a trust department must receive the Corporation's consent to 

exercise trust powers. During 1979, 

52 new trust departments began 

operations in banks supervised by 

the FDIC.

The Corporation supervises 2,069 

trust departments in State nonmember banks. As of December 31, 

1 978, the latest date for which figures are available, these trust departments managed about $45 billion in 

discretionary trust assets. Most of 

the trust departments supervised by 

the Corporation are relatively small: 

1,563, or 78 percent, have $ 10 million or less in trust assets. However, 

the Corporation also supervises 71 

trust departments of over $ 100 million and 10 of these manage over $ 1 

billion in discretionary trust assets. 

Additionally, 453 banks were registered with the FDIC as registrars and 

transfer agents of certain classes of 

securities as required by the Securities Exchange Act of 1 934.

Each State nonmember banktrust 

department is examined regularly by 

the Corporation. To enhance the

FDIC's trust examination capabilities, 1 5 Trust Specialist bank examiners have been appointed in 10 

Regional Offices.

Each trust department supervised 

by the Corporation must file an annual report showing the market 

value of discretionary trust assets 

under its control. The 1979 report 

was the first such statistical survey 

of banks to be conducted under the 

auspices of the Federal Financial 

Institutions Examination Council (FFIEC). 

In addition, the FDIC expanded coverage of the report to include those 

mutual savings banks exercising 

trust powers. The report also includes, for the first time, a schedule 

giving certain details about each 

collective investment fund operated 

by a bank's trust department.

A survey to determine the extent of 

overseas trust activities of State nonmember banks was conducted atthe 

end of 1979 under the auspices of 

the FFIEC. The survey requested information on the type, volume, and 

location of investment management 

and other fiduciary services offered 

overseas.

The Corporation changed Part 309 

of its Rules and Regulations in 1 979 

to allow additional inform ation 

shown on the Trust Department Annual Report to be made available to 

the public upon request in the same 

manner as bank Reports of Condition and Reports of Income.

A new Part 344 of the Corporation's Rules and Regulations was 

adopted in 1979, effective January 

1, 1980, setting uniform minimum 

standards in bank recordkeeping, 

customer confirmations, and other 

policies and reporting requirements 

on securities transactions for trust 

department and other bank customers.

Electronic Data Processing (EDP)

Examination. In 1 979, the FDIC enhanced its EDP training program for 

examiners, and structured EDPTrainDigitized for FRASER 

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OPERATIONS OF THE CORPORATION /

ing Courses for Interagency use.

In 1 978, the Corporation adopted 

an Interagency EDP policy statement which brought about joint or 

rotated examinations of independent data centers and distribution of 

examination reports to all servicers 

and serviced institutions. This generated a substantial amount of 

paperwork ;so the policy was modified in mid-1 979 in favor of distribution only when conditions noted at a 

servicer could adversely or materially 

affect serviced institutions.

Development of the Interagency 

EDP Examination Manual began in 

early 1 979. Publication is expected 

in mid-1980 and implementation 

shortly thereafter. A draft of the manual was reviewed by bankers, data 

processors, consultants and regulators.

Applications. State nonmember 

banks must apply to the FDIC to, 

among other things, obtain deposit 

insurance, establish new branches, 

or relocate existing offices. The Corporation also rules on merger, consolidation and purchase and assumption transactions when the resulting

bank is to be an insured State nonmember bank, or on any mergertype transaction of an insured bank 

with a noninsured institution. In approving or denying applications, the 

FDIC considers such factors as the 

bank's financial history and condition, its capital adequacy, its future 

earnings prospects, the general character of its management, and the 

convenience and needs of the community to be served, and — in a 

merger-type transaction — the effect on competition.

During 1 979, the Corporation considered:

• three applications of foreign 

banks for U.S. branch offices;

• 166 applications of banks for 

deposit insurance, including 

31 from State member banks 

w hich applied for c o n tin ­

uation of insured statusfollowing voluntary withdrawal of membership from the Federal Reserve system;

• 1,437 applicationstoestablish 

new branches or operate limited branch and remote service facilities; and

FDIC APPLICATIONS

1979 1978

Deposit insurance— to ta l.................................................. ............. 169 134

A pproved........................................................................... ............. 167 130

D enied............................................................................... ............. 2 4

New Branches (prior consent)— to ta l.............................. ............. 1,437 1,055

A pproved........................................................................... ............. 1,434 1,045

Branch.......................................................................................... 845 680

Limited Branch................................................................•............ 122 162

Remote Service Facility................................................. ............ 467 203

D enied................................................................................ ............ 3 10

Mergers*— total.................................................................. ............ 53 70

Approved........................................................................... ............ 52 65

D enied................................................................................ ............ 1 5

‘ Certain mergers undertaken as part of internal reorganizations not included.

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8 FEDERAL DEPOSIT INSURANCE CORPORATION

• 53 merger-type proposals, including three emergency cases.

All applications were approved except for two denials of insurance, 

three denials of branches, and one 

denial of a merger.

The Change in Bank Control Act, 

Title VI of The Financial Institutions 

Regulatory and Interest Rate Control 

Act of 1978 (FIRlRCA), effective 

March 1 0, 1 979, expanded Section 

7(j) of the Federal Deposit Insurance 

Act to give the Corporation and the 

other Federal banking agencies the 

power to deny in advance changes in 

control of insured banks and bank 

holding companies. The expanded 

Section 7(j) requires personsorgroups 

buying control of an insured State 

nonmember bankto provide 60 days 

written notice to the Corporation, 

plus detailed personal background 

and financial data and information 

on the terms and financing of the 

proposed acquisition.

After considering the views of the 

appropriate State chartering authority, the Corporation may deny the 

proposed acquisition on the basis of 

anticompetitive considerations. The 

acquisition may also be barred if the 

financial status, competence, experience and integrity of the acquiring 

persons or their management might 

jeopardize the financial stability of 

the bank or prejudice the interests of 

the depositors. The legislation provides for the exchange of information among Federal banking agencies and provides appeal procedures for purchasers whose acquisitions have been denied. Previous 

requirements that banks report, with 

certain exceptions, loans secured by 

25 percent or more of the outstanding stock of a bank to the appropriate Federal regulator remain in 

effect. In addition, reports previously required from banks relating 

to changes in chief executive officers and directors occurring within

12 months of a change in control

were expanded by the 1 978 legislation to include information on their 

past and present business and professional affiliations.

Implementation of the Change in 

Bank Control Act included adoption 

by the Corporation of a policy statement and revisions to Part 303 of its 

regulations. These were developed 

on an interagency basis and are 

consistent with those of the other 

Federal bank supervisory agencies. 

Both reflect policies which provide 

for effective administration with minimum additional burden on the marketplace, balancing the prevention 

of serious harmful effects of some 

transactions against the impact of 

the statute on legitimate business 

transactions. Authority to act on certain "prior notices” has been delegated to the Corporation's Regional 

Directors; however, only the Board 

of Directors may disapprove a notice.

During 1979,therewere469 changes 

in control of State nonmember banks 

reported to the Corporation. These 

changes included formations of and 

acquisitions by bank holding companies, transactions which occurred prior to the effective date of 

the Change in Bank Control Act, and 

other transactions not necessarily 

subjecttothe"prior notice" requirements. The Corporation accepted 

1 48 "prior notices" pursuant to the 

Act. Of this total, 120 "letters of 

intent not to disapprove" were 

issued, 1 5 had not been acted on at 

year-end, nine were withdrawn and 

one was disapproved by the FDIC 

Board of Directors. In three cases 

the period for disapproval was purposely allowed to expire without the 

issuance of a "letter of intent not to 

disapprove." Average processing time 

for the 1 24 "prior notices" acted on 

during 1 979 was 34.5 days. About

3,700 workhours were devoted in 

1 979 to evaluating and processing 

"prior notices."

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OPERATIONS OF THE CORPORATION 9

In connection with changes in 

bank control, the FDIC and the other 

Federal bank regulators began efforts in 1 979 to develop a comprehensive central data base of information on foreign investment in U.S. 

banks. It is anticipated that the data 

base will become operational in 

1980.

Uniform Supervision. During 1 979, 

the Corporation continued to make 

significant advances in the development of uniform supervisory policies and procedures and the elimination of duplication of regulatory 

effort. FDIC participation in the Interagency Coordinating Committee, which 

was set up early in 1 977 to coordinate certain supervisory policies 

and procedures among the three 

Federal banking agencies was carried over into the activities of the 

Federal Financial Institutions Examination Council (FFIEC).

The FFIEC, which was created by 

Title X of FIRIRCA, consists of OCC, 

the Federal Reserve Board, the Federal Home Loan Bank Board, the 

National Credit Union Adm inistration and the FDIC. The Council 

established five task forces to work 

on development of a common monitoring system for banks; coordination of supervisory activities; uniform administration of consumer protection laws and regulations; common data gathering systems; and 

common educational programs. Projects completed by the various task 

forces and approved by the Council 

are detailed in the FFIEC's annual 

report.They includea uniform interagency system for rating financial 

institutions; joint regulations and reporting requirements underthe International Banking Act; procedures 

for coordination of formal corrective 

actions and bank holding company 

inspections and subsidiary bank examinations; a proposed policy on credit 

life insurance sales by lenders; and 

policies on uniform disclosure of

enforcement actions, payment of bank 

employees' membership fees and 

dues in private clubs that discriminate, and the purchase and sale of 

U.S.-guaranteed loans.

The uniform system for rating 

banks and thrift institutions and identifying those with problems makes it 

possible to reconcile differences among 

credit unions, savings and loan associations, mutual savings banks and 

commercial banks to achieve uniformity and consistency in evaluating their soundness and their compliance with law. While ratings for 

individual institutions are not made 

public or given to the institutions 

examined, a uniform rating system 

permits a better comparison of the 

varied aggregate data regularly made 

available by the five agencies.

Shared national credits are those 

loans aggregating $20 million or 

more to one borrower which are participated in or shared by two or more 

banks. During 1 979, the FDIC continued its participation with the OCC 

and the Federal Reserve Board in an 

annual review of these credits. The 

review and classification of shared 

national credits, conducted independently of regular examinations, 

is the responsibility of speciallyselected joint examiner teams assigned to the lead bank or agency for 

such credits. Ordinarily, shared national credits are reviewed only on 

an annual basis; however, any participating bank involved may request, through its lead bank, that an 

interim review of an individual credit 

be conducted. The appraisal assigned at the lead bank, including 

any adverse classification, is applicable to all participations of such 

credit held by any national, State 

member or State nonmember insured bank, and remains in effect 

until the next regular annual review 

or subsequent change resulting from 

an interim review. A total of 271 

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

ticipated in shared national credits 

in 1979.

The FDIC, the OCC, the Federal 

Reserve and the Conference of State 

Bank Supervisors jointly issued on 

May 7, 1 979, a revised statementon 

classification of bank assets and 

appraisal of securities in bank examinations, including amended rules 

for assessing bank holdings of municipal general obligations. The statement is a revision of the Uniform 

Agreement on the Classification of 

Assets and Appraisal of Securities 

Held by Banks issued in 1938 and 

revised in 1949. The revision (1) 

provides expanded definitions of'Substandard,'' “ Doubtful/' and "Loss” 

categories used for criticizing bank 

assets; (2) sets guidelines for examiners to follow in distinguishing 

investment quality from subinvestment quality securities in bank portfolios; and (3) restates guidelines for 

examiners to use in computing a 

bank's net sound capital. The revised Uniform Agreement also provides an exception to the general 

rulesfor appraisal and classification 

of municipal general obligation securities in bank portfolios.

The three Federal bank regulatory 

agencies issued a joint policy statement on November 1 5, 1979, setting forth precautionary rules and 

specific guidelines for commercial 

and mutual savings banks that engage in futures, forward and standby contracts for U.S. government 

and agency securities. The policy 

statement, which is to become effective on January 1, 1980, said that 

banks that engage in these contracts should do so in accordance 

with safe and sound banking practices, with levels of activity reasonably related to the bank's business 

needs and its capacity to fulfill its 

obligations under these contracts. It 

also provided a set of guidelines that 

should be followed by banks authorized to participate in these markets.

The statement noted that the agencies will closely monitor bank transactions in financial futures, forward and standby contracts. Depending on what this monitoring 

discloses, it might be necessary to 

establish position limits or take 

other supervisory precautions against 

unsafe or unsound practices.

ENFORCEMENT PROCEEDINGS

If a supervised bank does not correct an unsafe or unsound practice 

or a violation of a law, rule, regulation or written agreement with the 

FDIC, the Corporation may initiate a 

cease-and-desist proceeding. If the 

bankdoes not comply, the FDIC may 

seek enforcement in a U.S. District 

Court or levy a fine.

The FDIC may issue cease-anddesist orders under Sections 8(b) 

and 8(c) of its Act. During 1979, the 

Board of Directors authorized 59 

such actions, resulting in 37 final 

orders under Section 8(b) and six 

temporary orders under Section 8(c). 

In addition, 15 final orders were 

issued covering cease-and-desist proceedings begun in 1 978. The FDIC 

also brought one enforcement action in 1979 against a bank in the 

appropriate United States District Court 

for violation of Section 8(b) orders.

The Corporation is making greater 

use of its authority to issue ceaseand-desist orders to achieve correction of certain weaknesses in banks. 

It first used the authority in 1971 

and from 1 971 through 1 975 issued 

37 orders. Inthelastfouryearsithas 

issued 176 orders under Sections 

8(b) and 8(c). During 1979, seven 

cease-and-desist orders were issued 

to correct violations of various consumeroriented laws and regulations. Another 

51 orders were issued primarily to 

correct unsatisfactory financial conditions or management practices.

FIRIRCAexpanded the Federal bank

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Federal Reserve Bank of St. Louis
ENFORCEMENT PROCEEDINGS

supervisors' authority under Section 

8(b) to also permit cease-and-desist 

orders against bankers and fines of 

up to $ 1,000 per day on both banks 

and bankers for certain violations. 

No fines were levied during 1 979.

The FDIC may initiate terminationof-insurance proceedings under Section 8(a) of the Federal Deposit Insurance Act if it finds a bank is in an 

unsafe or unsound financial condition. If a bank does not correct deficiencies noted by the FDIC within a 

prescribed time period, an administrative hearing is held at which the 

bank can respond to the Corporation's charges. If the charges are 

substantiated, the FDIC may terminate the insured status of the bank. 

The depositors of the bank are then

notified of the termination, but deposits (less subsequent withdrawals) 

continue to be insured fortwo years.

During 1979, the FDIC initiated 

nine termination-of-insurance proceedings by issuing Findings of Unsafe or Unsound practices and Condition and Orders of Correction. Six 

proceedings were still pending at 

year-end; the otherthree were made 

moot by two bank closings and a 

merger. From 1 934 through 1 979, 

action was taken under Section 8(a) 

against a total of 252 banks, and 

246 cases had been closed at the 

end of 1979. In slightly less than 

one-half of the closed cases, corrections were made; in most of the 

other closed cases the banks were 

absorbed by other insured banks or

CEASE-AND-DESIST ORDERS AND ACTIONS TO CORRECT

SPECIFIC UNSAFE OR UNSOUND PRACTICES OR VIOLATIONS

OF LAW OR REGULATIONS: 1976, 1977, 1978, AN D 1979

1979 1978 1977 1976

Actions authorized by Board of Directors................................. 59 51 50 41

Actions in negotiation at end of year........................................ 16 22 6 15

Cease-and-desist orders outstanding at beginning of

year-total.................................................................................... 70 65 36 15

Section 8(b) .............................................................................. 67 63 34 15

Section 8(c)............................................................................... 3 2 2 0

Cease-and-desist orders-issued during year-total................. 43 31 39 26

Section 8 (b ).............................................................................. 37 26 31 21

Section 8(c)............................................................................... 6 5 8 5

Cease-and-desist orders issued in actions authorized

in prior year-total..................................................................... 15 6 13 3

Section 8 (b ).............................................................................. 15 6 13 3

Cease-and-desist orders terminated-total................................ 40 32 23

o

8

Section 8 (b ).............................................................................. 31 28 15 5

Section 8(c)............................................................................... 9 4 8 3

Cease-and-desist orders in force at end of year-total............ 88 70 65 36

Section 8 (b ).............................................................................. 88 67 63 34

Section 8(c)................................................................................ 0 3 2 2

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

ceased operations priorto the establishment of a date for insurance termination. In 15 cases, insurance 

was terminated or the bank ceased 

operations following the fixing of a 

date for insurance termination.

Under Section 8(e) of the FDI Act, 

the FDIC may remove an officer, 

director, or other person participating in the management of an insured 

State nonmember bank if it determines that the person has (1) violated a law, rule, regulation, or final 

cease-and-desist order; (2) has engaged in unsafe or unsound banking 

practices; or (3) breached his or her 

fiduciary duty. The individual's action must involve personal dishonesty or a willful disregard for the 

safety and soundness of the bank. 

Also, the action must entail substantial financial damage to the bank, or 

seriously prejudice the interests of 

the bank's depositors or the individual must have received financial gain. 

During 1 979, two actions were 

taken under Section 8(e).

Section 8(g) of the FDI Act authorizes the Corporation to suspend or 

remove officers, directors, and other 

persons participating in the affairs 

of insured State nonmember banks 

who are indicted for a felony involving dishonesty or a breach of trust. 

One individual was suspended under 

this section in 1 979.

Section 1 9 of the FDI Act prohibits 

anyone convicted of any criminal 

offense involving dishonesty or breach 

of trust from serving as a director, 

officer or employee of any insured 

bank without the written consent of 

the Corporation. In 1 978 the Corporation amended Part 303 of its regulations to delegate to the Board of 

Review, the Director of the Division of 

Bank Supervision, and its Regional 

Directors the authority to approve 

certain applications under Section 19 where the subject of the 

request would not constitute a significant threat or risk to the safety

and soundness of the applicant bank. 

During 1 979, the Corporation considered 62 cases under Section 1 9, 

approving all but four.

PROBLEM BANKS

For the third consecutive year, the 

number of institutions on the FDIC's 

list of problem banks, which peaked 

at 385 in November 1976, continued to decline. By year-end 1979, 

the number of problem banks was 

287, the lowest since mid-1 975 and 

a net reduction of 55 for the year. 

The decrease is attributed to improvement in the real estate sector and in 

local economic conditions following the 1973-1975 recession. Because of the time lag before banks 

are affected by an economic cycle 

and the time it takes to examine 

banks and complete the review and 

analysis process, any increase inthe 

number of problem banks stemming 

from unfavorable developments in 

the last half of 1979 might not be 

evident until late 1980.

The problem bank list (which includes national and both member 

and nonmember State banks) continues to be very fluid and most 

banks remain on the list for a relatively short period. During 1979, 

there were 1 98 banks removed from 

problem status, while 143 were 

added. Of those on the list at the end 

of 1979, 55 percent had been in 

problem status for 18 months or 

less, while only 23 percent had been 

on the list for more than three years. 

Areas of concern in these newlydesignated problem banks included 

asset problems resulting from mismanagement and/or insider abuses, 

poor earnings, inadequate capital, 

and insufficient liquidity. While 

some banks have relaxed loan quality considerations in an effort to 

generate income to meet rising 

costs, other banks have experienced

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Federal Reserve Bank of St. Louis
PROBLEM BANKS 13

disintermediation problems, both of 

which have become matters of supervisory concern.

The FDIC divides problem banks 

into three categories based on the 

degree of insurance risk:

SERIOUS PROBLEM— POTENTIAL PAYOFF: An advanced serious problem situation with an 

estimated 50 percent or more 

chance of requiring financial 

assistance by the FDIC.

SERIOUS PROBLEM: A situation thatthreatens ultimately to 

involve the FDIC in a financial 

outlay unless drastic changes 

occur.

OTHER PROBLEM: A situation 

in which a bank has significant

weaknesses but the FDIC is 

less vulnerable. Such banks requireaggressivesupervisionand 

more than ordinary attention.

An analysis of the problem bank 

list since 1973 shows that about 34 

percent of the banks once designated "Serious Problem-Potential 

Payoff" ultimately failed. Another 10 

percent merged with other banks 

without financial assistance from 

the Corporation, while one percent 

were financially assisted by the Corporation. Fifty-three percent were 

accorded a less severe rating or 

removed from problem status. Each 

of the banks in this category at the 

end of 1979 held deposits of less 

than $50 million. The two most seriNum ber of Banks 

400 --------------------

NUMBER OF PROBLEM BANKS 

1970— 1978

| Serious Problem — Potential Payoff 

feBjH Serious Problem 

] Other Problem

300-

----

200

100

1970 1971 1972 1973 1974 1975 1976 1977 1978 1979

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

ous problem categories accounted 

for 67 of the problem banks at yearend 1979, a significant reduction 

from the 93 at the end of 1 978.

Of the 287 banks on the problem 

list at the end of 1979, nine were 

affiliates of multi-bank holding companies, while 34 were owned by 

one-bank holding com panies. 

Based on deposit size, banks on the 

problem list were distributed as follows:

Deposit Size Number of Banks

Less than $25 million 1 93

$25 - $50 million 47

$50 - $ 100 million 24

$100 - $500 million 15

$500 m illio n -$ 1 billion 6

$ 1 billion or more __ 2

TOTAL 287

Problem banks represented 

only about two percent of all banks 

insured by the FDIC.

The FDIC continues to aggressively supervise problem banks, as 

well as those which need moresupervisory attention but do not present 

an undue risk to the insurance fund. 

During 1 979,the Corporation adopted 

a procedure to generally require, as 

a minimum, cease-and-desist action 

againsta problem bankand a less formal memorandum of understanding 

with a bank considered to be of supervisory concern, as defined by the 

uniform rating system. This procedurealso isfollowed bytheOCC and 

the Federal Reserve Board. Close contact at the Washington and Regional levels with these Federal regulators has enabled the Corporation 

to keep more currently informed about 

banks supervised by them and, 

where appropriate, has facilitated 

the scheduling of examinations of 

related banks and holding companies supervised by the FDIC and the 

other supervisors. Atyear-end, the agencies adopted policy statements calling for close coordination of examinations and enforcement actions

against related institutions.

The Corporation continues to conduct more frequent examinations 

and visitsto problem banks, to regularly meet with directors and management of such banks, and to formally notify them when their bank is 

recommended for problem status. 

Such procedures not only keep the 

directors of problem banks informed of the Corporation's concern, but point out their responsibilities and duties in developing and 

implementing corrective programs.

FAILED BANKS

Protection of Depositors. Ten insured banks with deposits totaling 

$111 million closed in 1 979, compared to seven banks with $854 million in deposits in 1978. The FDIC 

has nearly completed payoffs of deposits of about $12.7 million in 

three of the 1979 closings. In the 

seven other closed banks, the FDIC 

arranged purchase and assumption 

transactions which automatically protected all accounts, including those 

in excess of the insurance limit. The 

purchase and assumption transactions were assisted by cash advances of $70.5 million from the 

FDIC insurance fund. In these cases 

$7.8 million in purchase premiums 

were received from the assuming 

banks.

The deposit assumption and the 

deposit payoff are the two principal 

methods available to the FDIC to 

protect depositors. In the 558 insured bank failures that have required Corporation disbursements 

since 1934, 251 were deposit assumptions and 307 were direct deposit payoffs. In the assumption method, which has been used increasingly in recent years, the depositors' 

accounts in the failed bank become 

depositaccountsinthehealthyassuming bank. All depositors are thereby

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Federal Reserve Bank of St. Louis
FAILED BANKS 15

afforded full protection with minimal or no disruption of banking services to the community. In a payoff, 

the FDIC pays depositors the net 

amount covered by deposit insurance. These payments usually begin 

within five to seven days of the bank 

closing. Payments of the uninsured 

portions of deposits, to the extent 

possible, are made over a period of 

timefromthe proceeds of liquidated 

assets and other sources.

The FDIC also may provide direct 

assistance to an operating insured 

bank in danger of failing to enable it 

to remain open if that bank is essential to maintain adequate banking 

services in a community. It has provided such assistance in four cases, 

most recently in 1 976.

In the 558 failed bank cases, 99.8 

percent of the depositors had received or were assured of payments 

of their deposits in full at the end of 

1979, and 99.8 percent of the total 

deposits had been paid or made 

available to them. In the 307 deposit 

payoff cases, 98.8 percent of depositors had received full recovery. While 

the recovery of uninsured deposits 

varies, in the aggregate almost 97 

percent of total deposits had been 

paid or made available. About 70 

percent of the total amount already 

recovered by or made available to 

depositors in deposit payoff cases 

was provided by FDIC payment of 

insured deposits, with additional 

amounts provided from the proceeds of liquidated assets, offsets 

against indebtedness and pledged 

assets.

Liquidation Activities. During the 

1960s, 43 insured banks with asDEPOSITS AND LOSSES IN ALL INSURED BANKS

REQUIRING DISBURSEMENTS BY FDIC, 1934-1979

TOTAL DEPOSITS 

$7.40 billion

DISBURSEMENTS BY FDIC" 

$5.22 billion

Lost or not yet available to depositors 

$14.5* million

•Revised

"Includes collections and disbursements by liquidators in the field ($1.5 billion) which were 

previously excluded from this chart.

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

IN S U R E D B A N K F A IL U R E S

1934 — 1979

N u m be r o f banks

8 0 ----------------------------------------------------------------------------------------------------------------------------------

7 0 -

6 0 -

5 0 -

4 0 -

D e p o sit P ayoff 

D e p o sit A ssu m p tio n

sets of $326.5 million failed, affecting 231,688 depositors with deposits of $283.5 million. The 1970s 

saw 76 insured bankfailures involving assets of about $8 billion and 

2.1 million depositors with deposits 

totaling about $5 billion. At the end 

of 1 979, the Division of Liquidation 

was disposing of the assets of 84 

banks in 27 States, the Virgin Islands, and Puerto Rico. At year-end

1979, there were more than 76,000 

assets with a book value of more 

than $1.9 billion to be liquidated. 

About one-third of these assets were 

real estate related.

The FDIC's policy is to convert the 

assets of closed banks to cash as 

early as practical and to realize maximum recovery for distribution to the 

creditors and stockholders.

In the 53 purchase and assumption transactions inthe 1 970s, banks 

acquired about $3.6 billion of assets from the FDIC. as receiver, 

which had the effect of immediately 

recovering substantial amounts for 

the creditors. For the same period, 

the FDIC, as liquidator, collected 

about $3.8 billion in principal, interest and costs from the remaining 

assets. In addition, the receiverships

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Federal Reserve Bank of St. Louis
FAILED BANKS

recovered $325 million from purchase premiums paid by banks for 

the right to acquire the failed banks' 

deposits and banking locations.

Recovery for creditors and stockholders can also result in some cases 

from directors' liability actions initiated by the receiver and/or liquidator. Because many bank closings 

are the direct result of bank directors' failure to use reasonable care 

in discharging their duties or permitting violations of banking laws, the 

FDIC normally investigates potential

negligence and files claims when 

warranted against members of the 

bank's board. In 1 979, the FDIC filed 

four directors' liability suits; at the 

end of 1979, there were 26 such 

suits pending.

Whenever it is determined thatthe 

bank suffered losses due to the fraudulent and dishonest acts of its employees, the Corporation pursues a 

claim against the institution's Bankers Blanket Bond carrier. Most claims 

are settled without litigation. However, at the end of 1979, there were

INSURED BANKS CLOSED DURING 1979 REQUIRING DISBURSEMENTS

BY THE FEDERAL DEPOSIT INSURANCE CORPORATION

Name and location

Date of 

deposit payout 

or assumption

Number of 

depositors 

or accounts

Amount of 

deposits (in 

millions of 

dollars)

Toney Brothers Bank 

Doerun, G eorgia..................... January 5, 1979 1.470 5.8

Village Bank

Pueblo West, C olorado.......... January 26, 1 979 1.394 4.9

Southern National Bank 

Birmingham, Alabam a............ June 14. 1979 3.61 1 24.0

Bank of Enville

Enville, Tennessee.................. June 16. 1979 949 3.1

The Guaranty Bank & Trust 

Company

Chicago, Illin o is ...................... July 14. 1979 5.270 7.4

Gateway National Bank of 

Chicago

Chicago, Illin o is ...................... July 14. 1979 3,700 9.2

The Farmers State Bank 

Protection, Kansas.................. September 21,1 979 1,206 4.7

Fidelity Bank

Utica, M ississippi.................... September 28, 1 979 1 1.91 1 30.2

American National Bank 

Houston. Texas....................... October 1 2, 1 979 5.100 10.4

Livingston State Bank 

Livingston. New Jersey.......... October 1 2, 1 979 7.226 11.1

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

L IQ U ID A T IO N A C T IV IT Y

F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N ,

M illio n s of dollars 1 9 7 0 — 1 9 7 9

2.700--------------------------------------------------------------------------------------------------------

1970 '71 

N um ber 

90-----------------

30------------------

20-----------------

10------------------

0—i----------r1970 '71

— r~

12 73 74

— I—

7 5 76 '77

- r-

'78 '79

nine such suits pending.

An important innovation in the 

FDIC’s liquidation program developed in 1979 for introduction in 

1 980 is a separate budget to introduce tighter monitoring and control 

to this unique aspect of FDIC operations. This budget will encompass 

insurance fund expenditures which 

the Corporation seeks to recoupthrough 

liquidation operations before it 

writes off a loss. The 1 980 budget 

covers costs to be incurred in 1 980 

in the continuing administration of

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CONSUMER AND CIVIL RIGHTS PROTECTION 19

banks that failed in 1 979 or earlier— 

an active caseload of 84 banks. 

There is also a small contingency 

fund to begin closed-bank activities 

for failures that may occur in 1980. 

Individual closed-bank budgets will 

be developed and incorporated as 

failures occur.

Also, a new integrated liquidation 

accounting system, to become operational in January 1 980, is designed 

to operate on computers. It will be 

able to produce on demand full financial statements and budget status 

reports for all closed-bank activities. 

These reports separately and together will provide much greater 

information for the management of 

banks in liquidation.

The system tested well in late 1 979, 

but 1 980 will be a year of conversion and initial operation. The Corporation will obviously need some 

running time and experience with 

the system to overcome shortcomings and introduce refinements.

The FDIC is charged with obtaining the best possible recovery in 

each liquidation. Its goal is to repay 

the insurance fund first and to return 

any excess to bank shareholders 

where a purchase and assumption is 

arranged or to share the recovery 

proportionally with general creditors and then the shareholders when 

the Corporation serves as receiver 

following a deposit payoff.

CONSUMER AND CIVIL

RIGHTS PROTECTION

Resolving Complaints. Examiner monitoring of consumer and civil rights 

compliance by banks is complemented by the work of the Office of 

Consumer Affairs and Civil Rights 

(OCACR) which follows up complaints of individuals. OCACR also 

disseminates consumer protection 

information and in November 1 979 

introduced a consumer hot line which

draws about 240 calls a week. This 

hot line helps consumers and banks 

by promoting better understanding 

and resolution of questions.

This year saw the appointments of 

OCACR's first permanent Director 

and a Community Reinvestment Act 

specialist. The Corporation also appointed a specialist for Spanishspeaking persons. Among otherduties, 

this specialist oversees the translation of FDIC consumer pamphlets 

into Spanish. OCACR w ill also 

launch a special outreach program 

forSpanish-speaking persons in 1 980 

and will explore the possibility of 

other specialized outreach programs.

In 1979 the FDIC instituted a new 

computerized system to:

(1) follow the status and handling of 

consumer complaints and requests 

for information,

(2) produce one-page summaries of 

census information for use by examiners and other FDIC personnel evaluating bank compliance with the 

Community Reinvestment Act,

(3) summarize hundreds of letters of 

comment on proposed new Truthin-Lending Guidelines, and

(4) tabulate a follow-up survey asking complainants if their problems 

were satisfactorily resolved.

Fair Housing. The FDIC developed 

and pre-tested a data collection system to provide a valid statistical 

basis for the monitoring of home 

loans under the Fair Housing and 

Equal Credit Opportunity Acts. This 

system will supplement the tools of 

the compliance bank examiner. It is 

slated to become operational during

1980.

The data collection system is designed to detect possible home loan 

discrimination. The relationship between inquiries and applications, between successful and unsuccessful 

applications, and the loan terms granted to borrowers will be categorized 

and compared by the race, sex, age

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

and marital status of inquirers and 

applicants. Use of this system will 

not definitely establish the existence 

of illegal discrimination, but should 

identify for FDIC examiners those 

banks requiring more extensive examination and follow-up.

Mortgage Disclosure. The FDIC and 

the Federal Home Loan Bank Board 

completed a study of the Home Mortgage Disclosure Act (HMDA). The 

study assessed the accuracy of 44 

depository institutions' HMDAstatements and the cost of preparing the 

data on mortgage lending activity 

which appears in these statements.

The study concluded that home 

mortgage disclosure data are used 

extensively by the Federal financial 

supervisory agencies as part of their 

compliance examinations. However, 

it concluded that many institutions 

do not have sufficiently accurate 

statements. Further, the cost of compiling home mortgagedisclosuredata 

was shown to vary considerably among 

institutions.

The report recommended extension of the Act, which was passed in 

1975 and expires in 1980 if not 

reenacted. The FDIC has gone on 

record as supporting the extension 

of the Home Mortgage Disclosure 

Act.

Truth-In-Lending Enforcement Guidelines. The FDIC, in conjunction with 

the other Federal financial regulatory agencies, adopted effective January 4, 1979, uniform guidelines for 

the enforcement of Truth In Lending 

Regulation Z. These guidelines call 

for reimbursement to customers for 

overcharges of $ 1.00 or more, or for 

smaller overcharges that are part of 

a consistent pattern of violations or 

result from gross negligence or w illful violations of the Truth In Lending 

Act. Changestosimplifyand strengthen the guidelines were proposed 

in October. Pending consideration 

of the nearly 800 comments received and the adoption of revised 

guidelines, FDIC supervised banks 

are temporarily being permitted to 

defer making such reimbursements.

Community Reinvestment. The Community Reinvestment Act (CRA) of

1977, which became effective in 

November 1 978, requires the Corporation to monitor the records of 

financial institutions in meeting the 

credit needs of their communities, 

including lowand moderate-income 

neighborhoods.

Effective February 4, 1979, the 

Board of Directors of each insured 

State nonmember bank was required to adopt a CRA statement for 

its local service area. FDIC regulations specify the minimum requirements for a CRA statement and, 

among other things, require that the 

current CRA statement be available 

for public inspection at the home 

office of the bank and at each office 

of the bank in the local community 

delineated in the statement, except 

for off-premises electronic deposit 

facilities. Banks are required to maintain files that are readily available for 

public inspection, including any 

signed written comments received 

from the public within the previous 

two years that specifically relate to 

the bank's statement or its performance in helping meet the credit 

needs of its community or communities.

A bank's CRA performance is 

taken into account by the FDIC in 

considering applications for deposit 

insurance, establishment of branches 

or other facilities, relocations of 

main or branch offices, and applications for merger, consolidation, acquisition of assets or assumption of 

liabilities. The assessment of a 

bank's CRA performance record may 

be a basis for denial of an application.

Twenty-five challenges to applications by FDIC-supervised banks 

have been filed on CRA grounds,

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CONSUMER AND CIVIL RIGHTS PROTECTION 21

and early in 1979 the first denial of a 

bank application on CRA grounds 

occurred. Other applications which 

were subjected to challenges have 

been approved by the Corporation 

and activity in this area continues to 

be substantial, particularly in metropolitan areas.

Right to Financial Privacy Act of

1978. The Right to Financial Privacy 

Act, Title XI of FIRIRCA, became 

effective in March 1979. The Act 

places restrictions on the use of 

information derived from bank customer records which is lawfully in 

the FDIC's possession. In most cases, 

customer information contained in 

examination reports can no longer

be transferred to other Federal government authorities without notification to the affected customer. Also, 

the FDIC must be assured that the 

information is required in connection with a legitimate law enforcement activity. In 1979 the Division 

of Bank Supervision began reviewing and revising all policies and 

procedures which are affected by 

the provisions of the Act.

Consumer Complaints and Inquiries. OCACR is responsible for the 

appropriate disposition of consumer complaints and inquiries directed to the FDIC. During 1979 

there were 2,801 complaints and 

5,270 inquiries received by the FDIC

CONSUMER COMPLAINTS AND INQUIRIES, 1978 AND 1979

1979 1978

Complaints and inquiries— total...................................... 8,071 4,737

Deposit function............................................................. 2,685 1,315

Payment of interest.................................................. 243 158

Account differences................................................. 377 182

Advertising................................................................. 82 34

Early withdrawal penalties...................................... 745 217

Policies and practices.............................................. 587 574

‘ Discrim ination........................................................... 1 1 —

O ther........................................................................... 641 150

Loan function................................................................. 2,528 1,931

State or contract la w ................................................ 163 115

Equal Credit Opportunity A c t................................. 646 543

Fair Credit Reporting A c t........................................ 256 133

Individual bank loan policy...................................... 180 308

Collection and repossession................................... 142 100

Fair housing................................................................ 51 70

Truth in le n d in g........................................................ 379 183

Other Federal laws.................................................... 285 48

O th er........................................................................... 426 431

Trust services................................................................. 61 68

Safe deposit— safekeeping services.......................... 38 32

Insurance coverage....................................................... 974 685

General........................................................................... 1,754 706

•Electronic Funds Transfer........................................... 31 —

‘ Category not listed for 1 978.

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22 FEDERAL DEPOSIT INSURANCE CORPORATION

nationwide, an increase of 538 and 

2,796, respectively, over 1 978. This 

increase is due in part to installation 

of a toll-free telephone number 

(800-424-5488) at the Washington 

Office to handle complaints and inquiries. The increase also is attributable to an outreach initiative to 

increase consumers' awareness of 

their rights under the various consumer protection and civil rights statutes. Mostquestionsfielded by OCACR 

centered on deposit withdrawal penalties, bankdeposit policies and practices, the Equal Credit Opportunity 

Act and the Truth in Lending Act.

Corrective action is sought in all 

cases where a bank error or violation 

of law is discovered as a result of a 

complaint, and follow-up action is 

taken to ensure compliance.

Consumer and Banker Education. 

During 1979, the OCACR staff made 

numerous presentations to consumer, community and industry groups. 

The FDIC also distributed more than 

32 million pamphlets on consumer 

information. These free pamphlets 

are available singly to individuals 

and in quantity to banks and consumer organizations. OCACR also has 

distributed these pamphlets at consumer fairs and national conferences.

Minority Bank Development Program. In 1979, the three Federal 

bank regulatory agencies and the 

Department of Commerce were instrumental in organizing the Minority 

Bank Development Program. The program is designed to serve as a catalyst to coordinate, structure and encourage private sector support for 

the nation's minority-owned banks, 

of which there are about 100. The 

program will offer management and 

market development activities and 

foster the establishment of an independent capital support vehicle.

Opportunity Funding Corporation 

has been given the grant to establish, coordinate and direct all program components. An Executive Committee composed of private sector 

participants and the Department of 

Commerce will offer continuing advice on all aspects of the program 

and its policies and priorities. The 

FDIC and other bank regulators 

serve on an Advisory Committee which 

will offer training assistance, perform studies, provide feedback on 

the program's effectiveness and 

make suggestions for improvements. The FDIC's share of the funding of this program is on a year-toyear basis and future grants will 

depend on an assessment of the 

program's effectiveness. At the end 

of 1979, the program's management was in place and studies were 

nearing conclusion on criteria for 

selection of a few target banks for 

receipt of intensive assistance.

INTEREST RATE

DEVELOPMENTS

Increased Interest Expense. Sharply rising interest rates and such innovations as money market certificates of deposit (MMCDs), automatic transfer service (ATS) and neg o tia b le order of w ith d ra w a l 

(NOW) accounts in New York State, 

combined to cause marked changes 

in the liability structure of many U.S. 

banks in 1 979. Banks acquired highyielding assets, but on balance, the 

net effect on the industry as a whole 

probably was some narrowing in net 

interest margins.

The general level of interest rates 

on market securities fluctuated within a range of 9 to 1 0 percent in the 

first half of 1 979, before rising 

sharply in the second half. At yearend, six-month Treasury bill rates 

were 1 2.50 percent on a bond-yield 

basis and Federal funds rates approached 15 percent. MMCD rates 

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INTEREST RATE DEVELOPMENTS 23

ings and other time deposits of less 

than $10,000, prompting the conversion of many deposit accounts. 

At commercial and mutual savings 

banks, holdings of MMCDs (time 

deposits of $10,000 or more with 

maturities of six months and paying 

a maximum rate linked to the interest rate on newly issued six-month 

Treasury bills) increased sharply as 

banks sought to compete with alternative market instruments, including money market mutual funds.

By the end of December 1979, 

MMCDs amounted to $34.4 billion, 

or more than 24 percent of total 

deposits at mutual savings banks, 

and to $103.2 billion or nearly 10 

percent of total domestic deposits at 

commercial banks. Special tabulations from September and December condition reports showed an 

increase from 570 to 1,573 in the 

number of insured nonmember 

banks having ratios of MMCDs to 

total deposits of 20 percent or more. 

Banks with less than $ 100 million in 

assets headquartered outside metropolitan areas held a disproportionately large amount of these highcost deposits.

Accenting the 1979 increase in 

interest expense for banks was the 

continuing shift of consumer funds 

from non-interest bearing demand 

deposits to interest-bearing transaction accounts: ATS and NOW balances. A substantial amount of effort is being expended through the 

bank monitoring systems to assess 

the capacity of individual bank managements to structure their loan and 

securities portfolios to cope with the 

present inflationary environment.

Mutual Savings Banks. Unprecedentedly high interest rates, especially in the latter half of 1 979, subjected the mutual savings bank industry to a severe earnings squeeze. 

In addition, savings banks, particularly in metropolitan areas such as 

New York and Boston, experienced

substantial deposit outflows in 

1 979. With increasing interest rates 

available in other areas, net deposit 

outflows excluding interest at mutual savings banks increased throughout the year and totaled $7 billion 

for 1 979. For the month of October 

alone, deposit losses were well in 

excess of $ 1 billion.

The introduction of six-month 

money market certificates in 1978, 

while perhaps averting some deposit losses, sharply increased the 

cost of funds for mutual savings 

banks. Large proportions of these 

money market certificates represented transfers from relatively lowcost savings deposits. With relatively inelastic earnings position, the 

overall profitability of the industry 

was substantially reduced in 1 979.

Reflecting a concern for the earnings squeeze and deposit outflow, 

with the resultant liquidity pressures, the FDIC increased its efforts 

to more closely monitor industry 

trends as well as its surveillance of 

individual banks.

Small Savers. In an effort to help 

small savers. Federal regulators 

moved jointly in 1 979 to approve a 

series of interest rate regulatory 

changes.

Effective July 1, regulators increased the maximum passbook 

rate to 51/4 percent from 5 percent 

for commercial banks and to 51/2 

percent from 51A percent for thrifts, 

created a newfour-yearfloating rate 

savings certificate and eliminated 

the minimum denomination on most 

time deposits.

In December, regulators created a 

new 2V4 year certificate to replace 

the four-year floating rate certificate, at a yield tied to the yield on 

Treasury securities maturing in 2 Vi 

years. The agencies also increased 

the ceiling on 90 day to one-year 

deposits to 5% percent from 5Vi 

percent for commercial banks and 

to 6 percent from 53A percent for

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24 FEDERAL DEPOSIT INSURANCE CORPORATION

thrifts. These actions were to become effective January 1, 1 980.

INTERNATIONAL BANKING

The Corporation's increased involvement in the area of international banking continued during 

1 979 as evidenced, in part, by the 

issuance of several regulations and 

final as well as proposed policy statements covering aspects of this important segment of the banking business. Much of the Corporation's 

activity was attributable to FIRIRCA 

and the International Banking Act of

1978 (IBA).

To implement FIRIRCA, the Corporation adopted a new regulation, Part 

347, pertaining to foreign banking 

activities of insured State nonmember banks. Under the regulation, an 

insured State nonmember bank 

must obtain the Corporation's consent before establishing its first 

branch in a foreign country or before acquiring any ownership interest in a foreign bank or other financial entity. A foreign branch is permitted to exercise certain powers 

beyond its general banking powers, 

provided they are consistent with 

the laws of the State where the bank 

is chartered and with banking practices in the foreign country where 

the branch is located.The regulation 

also sets forth requirements for 

establishing additional branches in 

a foreign country; for recordkeeping, controls and reporting on foreign activities; and for making loans, 

purchasing securities or investing in 

affiliated foreign banks or financial 

entities.

Another new regulation, Part 346, 

was issued to implement Section 6 

of the IBA which, among other 

things, authorizes and in some 

cases requires, Federal deposit insurance coverage of U.S. branches 

of foreign banks. Under the regulation, a State branch of a foreign bank 

which accepts initial deposits of less 

than $100,000 must become insured if it is located in a State that 

requires State banks to have deposit 

insurance. A branch may be exempted from this requirement if the acceptance of initial deposits of less 

than $100,000 is limited to one or 

more exempt categories listed in the 

regulation. A branch which is exempted by the regulation from the 

insurance requirement must notify 

its depositors that deposits in the 

branch are not insured.

The regulation also sets forth requirements for the operation of insured branches, including — but not 

limited to — furnishing the Corporation with information regarding the 

overseas activities of the foreign 

bank and its affiliates to the extent 

allowed by foreign law; allowing the 

FDIC to examine all offices of the 

foreign bank and its affiliates in the 

U.S.; pledging assets to the Corporation; and maintaining assets payable in the U.S., in dollars or a freelyconvertible foreign currency, at 

least equal to the amount of the 

insured branch's liabilities. In addition, the regulation establishes rules 

for the operation of insured and 

uninsured branches in the same 

State.

During the year, 1 4 foreign banks 

applied for insurance for 26 

branches located in various parts of 

the country. At year end, insurance 

had been granted to three branches 

of two banks.

Since the IBA granted supervisory 

responsibilities to each of the Federal bank regulatory agencies, a 

joint policy statement was issued 

through the FFIEC on the supervision of U.S. branches and agencies 

of foreign banks. The agencies' supervisory operations will be aimed at 

assuring the safety and soundness 

of these institutions and their adherence to U.S. law and regulation. To 

ensure close cooperation with State 

authorities, a uniform examination 

approach has been developed through 

the FFIEC to minimize dual examinations and to facilitate joint FederalState examinations, when desirable.

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INTERNATIONAL BANKING 25

The Federal regulatory authorities, 

through the FFIEC and in cooperation with affected State authorities, 

also have developed joint reporting 

requirements for U.S. offices of foreign banks. In recognition of the 

reliance of these offices on the financial strength of their parent and affiliated offices outside the U.S., the 

regulators also will seek assurance 

thatthe parent institutions are financially sound. To this end, the agencies plan to collect information on 

the consoldiated operations of the 

foreign banks and will continue to 

engage in dialogue with senior management of the banks and bank supervisory authorities of other nations.

In recognition of the importance 

of overseas lending activities of U.S. 

banks, the Corporation and other 

banking agencies havecontinued to 

follow uniform procedures for evaluating and commenting on country 

risk factors in the international loan 

portfolios of U.S. banks. Country risk 

in bank lending refers to the possibility that economic, political or 

social conditions in a country might 

create a situation in which borrowers in that country would be unable 

to service or repay their debts to foreign lenders in a timely manner.

The uniform procedure requires 

examiners to segregate country risk 

factors from the evaluation of other 

lending risks and to assess a bank's 

ability to analyze and monitor country risk in its international lending. 

The assessment emphasizes diversification of exposure to individual 

countries as the primary method of 

moderating country risk in international portfolios. Examiners classify 

a bank's aggregate credits to a country on the basis of country risk only 

when there has been an interruption 

in debt servicing or one is considered imminent. The commercial 

credit risks in the bank's international portfolios continue to be assessed on an individual loan basis in 

accordance with traditional standards of credit analysis.

To help monitor the growth and 

composition of the international 

loan portfolios of U.S. banks, the 

Corporation receives the results of 

the semi-annual Country Exposure 

Report. The report is mandatory for 

any domestic bank with a foreign 

branch, a foreign subsidiary, or an 

Edge Act or Agreement corporation 

(branches of national banks established with Federal Reserve approval in foreign countries to finance 

and stimulate foreign trade) with 

aggregate foreign claims in excess 

of $20 million. It is intended to capture data on foreign credit activity of 

U.S. banks in all countries, by type of 

borrower and maturity of claims. 

Banks are also required to report 

firm commitments to extend additional credit in any country.

The Corporation, through the 

FFIEC, in 1979 issued a proposed 

Statement of Policy Concerning Minimum Standard for Documentation, 

Accounting and Auditing of Foreign 

Exchange and Money Market Operations of Commercial Banks. The intent of the policy statement is to 

reinforce existing accounting procedures and auditing practices widely 

utilized by commercial banks in monitoring and controlling foreign exchange and money market activities. 

The policy statement emphasizes 

the need for timely and accurate 

internal reporting so that bank 

boards of directors, senior management and government supervisors 

can manage and supervise this increasingly important aspect of international banking activity.

Because of the Corporation's increased involvement in international banking, an effort has been 

made to enhance the staff's expertise in this area. A number of examiners have attended specialized 

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26 FEDERAL DEPOSIT INSURANCE CORPORATION

cies, the Corporation participated in 

1 979 in a two-week basic course in 

international banking. Additional international banking courses are expected to be conducted in 1980 

under the auspices of the FFIEC. The 

Corporation also filled a staff position in its Washington Office having 

specific responsibility for focusing 

on international activities of domestic banks and domestic operations 

of foreign banks.

REPORTS AND SURVEYS

During 1 979, the FDIC staff was 

involved in the development of bank 

reports, largely required by statute, 

and as participants in the activities 

of the FFIEC. Among these were 

reports for U.S. branches and agencies of foreign financial institutions 

initiated pursuant to the International Banking Act of 1978. As required by FIRIRCA, reports were also 

developed for the disclosure of loans 

extended to certain bank employees 

and stockholders by the employing 

bank or its correspondent banks.

The staff provided analytical support to promote interagency uniformity in bank report instructional materials, in the publication of statistics, 

and in the further development of 

automated bank surveillance systems and reports related to such 

systems.

Surveys were initiated for monitoring money market certificates 

and automatic transfers from savings accounts. FDIC staff also participated in the establishment of a new 

weekly survey of selected nonmember banks for data to be used by the 

Federal Reserve in estimating the 

non member bank component of the 

nation's money supply.

A new Report of Condition and a 

new Report of Income were introduced 

in 1 979formutualsavingsbanks.The 

Report of Condition continues to be

collected quarterly, while the Report 

of Income, which was previously collected at the end of the year, now is 

collected on a semi-annual basis. 

These revisions to the reports, which 

had not been changed for a number 

of years, were designed in part to 

provide additional information to 

achieve an effective integrated monitoring system for mutual savings 

banks. Work on the system has progressed and it is expected to be 

operational early in 1 980.

BANK SECURITY

Part 326 of the FDIC's Rules and 

Regulations implements the Bank 

Protection Act of 1 968. It prescribes 

minimum standards for the installation, maintenance, and operation of 

security devices; procedures to discourage external bank crimes; and 

guidelines and procedures to assist 

in the apprehension of persons committing those crimes. Similar regulations were adopted by the other 

Federal bank regulatory agencies.

Part 326 requires banks to file 

Reports on Security Devices and 

Reports of Crime with the appropriate FDIC Regional Offices. The 

Corporation received 1,451 Reports of Crime in 1979, up from 

1,186 in 1978. During 1979, FDIC 

and the other Federal bank regulators began discussions on a joint 

proposal to amend the implementing regulations of the Bank Protection Act. Substantive changes being 

considered include reducing or 

simplifying reporting requirements 

for banks.

The upsurge of white collar crime 

experienced by the banking industry 

in recent years began to erode the 

availability of fidelity insurance for 

many banks. To combat this trend, 

the FDIC participated in the development of the Controlled Group 

Bonding Plan sponsored by the

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SECURITIES ACTIVITIES 27

American Bankers Association. The 

plan, which gained acceptance in 

many States in 1 978, is designed to 

provide banks with adequate fidelity 

and surety coverage while also providing the insurer a reasonable return on his risk investment. Banks 

participating in the plan must agree 

to engage an approved examining 

firm to conduct an in-depth examination of their internal controls. Conversely, participating insurers agree 

to give special consideration to underwriting fidelity coverage for participating banks. The objective of the 

plan is to reduce the risk of bank 

losses arising from the dishonest 

acts of bank directors, officers and 

employees.

SECURITIES ACTIVITIES

Registration and Reporting. The

Corporation administers and enforces the registration and reporting 

provisions of the Securities Exchange Act of 1934 for insured 

nonmember banks. These provisions 

are applicable to banks with more 

than$1 million in assets and 500 or 

more holders of any class of equity 

security. Such banks are required to 

file an initial registration statement 

and periodic reports, as well as a 

special report covering any material 

event which occurred in the preceding month.

To comply with the Corporation's 

regulation, any matter presented for 

a vote of security holders must be 

effectuated through a proxy statement, orthrough an information statement if proxies are not solicited. 

Where directors are to be elected, 

the proxy or information statement 

must be accompanied or preceded 

by an annual report disclosing the 

financial condition of the bank. Officers and directors of a bank whose 

securities are registered and any 

person or related group of persons

holding more than five percent of 

such securities must report their 

holdings and any changes in their 

holdings to the Corporation. All required statements and reports filed 

with the Corporation under the Securities Exchange Act are public documents and are available for inspection at the Corporation's headquarters and elsewhere.

At the end of 1979, there were 

396 banks registered with the FDIC, 

compared to 377 in 1 978.

Municipal Securities Dealer Activities. As of December 31,1 979, 54 

State nonmember banks or their departments were registered as municipal securities dealers. All municipal 

securities dealers are subject to rules 

promulgated by the Municipal Securities Rulemaking Board (MSRB). 

During 1979 the FDIC's reporting 

schedules were revised to comply 

with newly adopted and amended 

MSRB Rules and comprehensive 

examination guidelines were developed.

Lost and Stolen Securities Program. The Corporation shares enforcement responsibility with the Securities and Exchange Commission for 

Rule 1 7f-1 which established a national computer-assisted reporting 

and inquiry system for lost, stolen, 

counterfeit and forged securities.

After a pilot period of about a year 

and a half, the program and Rule 

1 7f-1 became permanent on July 1,

1979. All insured banks and brokers, dealers and other securities 

firms are subject to the rule and are 

required to register with the Securities Information Center, Inc., (SIC), 

Wellesley, Massachusetts. The lost 

and stolen securities program creates a central data base at the SIC of 

reported thefts and losses. Banks 

are required to validate certain securities coming into their possession 

by checking with the SIC; all missing, lost, stolen or counterfeit securities must be reported to the SIC.

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28 FEDERAL DEPOSIT INSURANCE CORPORATION

The objective of the program is to 

identify and thereby reduce traffic in 

such securities. Examination procedures were revised in 1979 to accommodate these added responsibilities and to assure compliance by 

banks supervised by the FDIC.

Offering Circular Policy Statement. The issuance of securities by 

banks is subject to the antifraud 

provisions of Federal securities 

laws, which require full and adequate disclosure of material facts. 

On July 2. 1979, the Corporation 

issued a statement of policy outlining the minimum standards for 

the disclosure of material facts in 

connection with the offer and sale of 

banksecurities by insured State nonmember banks. The statement of 

policy is designed to acquaint banks 

with their legal exposure when offering securities for sale and to promote greater awareness of their responsibilities under the antifraud 

provisions of Federal securities law.

In general, a filing requirementfor 

offering circulars is not imposed by 

the Statement of Policy. However, 

submission of circulars for review by 

the FDIC staff is encouraged. The 

Corporation continues to require the 

use of offering circulars by banks 

that are subject to orders under 

Section 8 of the Federal Deposit 

Insurance Act. The Corporation also 

will review whether public investors 

have been provided sufficient disclosure of material facts by any State 

nonmember bank which is in organization. The staff of the Corporation 

is available for consultation and assistance.

LEGAL ACTIVITIES

The Legal Division has wide ranging responsibilities within the Corporation, including regulations, enforcement actions and liquidation 

litigation.

The Legal Division initiated a 

major effort in the fall of 1979 to 

reduce costs of closed-bank lawsuits, including the fees of outside 

attorneys. The FDIC is at present 

involved in more than 5,000 lawsuits connected with liquidation and 

other closed-bank matters.

A computer program is being developed to help FDIC staff attorneys 

better supervise and evaluate the 

performance of outside attorneys. 

The program, scheduled for introduction in the spring of 1980, is 

intended to allow FDIC staff attorneys to increase their participation 

in liquidation matters and perform 

certain work for which FDIC has 

been paying private firms.

In addition, the General Counsel 

has established further guidelines 

for selection of outside counsel. 

These guidelines, aimed at achieving broader representation, include: 

(a) the same law firm usually will not 

be hired as lead local counsel on 

more than one liquidation simultaneously pending; and (b) when feasible, at least two firms will be used in 

each liquidation.

Fees paid by the FDIC to outside 

counsel are dependent on the number of bank failures, the size of those 

banks, and the nature and complexity of the litigation they generate.

New steps for cost-effective representation do not mean a sacrifice in 

quality. The Corporation continues 

to be committed to hiring top flight 

lawyers to handle liquidation matters. It takes good lawyers to get 

good results, and that is to the benefit of the Corporation, depositors, 

creditors and shareholders of the 

banks whose assets are being liquidated.

Besides these improvements in 

procedures, the Legal Division has 

advantageously diminished its caseload. The major part of the Franklin 

National Bank securities litigation, 

which is a significant portion of the

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RESEARCH ACTIVITIES 29

largest and most complex liquidation in the FDIC's history, was settled 

in December 1 979.

In addition to monitoring the work 

of outside attorneys, the Legal Division was faced with a demanding inhouse workload in 1979. Staff attorneys drafted 13 final rules to 

implement FIRIRCA.

The Legal Division is continuing 

an exhaustive review of existing regulations in support of an effort to 

reduce the regulatory burden and 

paperwork. The Chairman has designated a full time task force for this 

effort. In 1 979 the Corporation eliminated six regulations, issued a policy statement in lieu of one proposed regulation and substantially 

reduced two other regulations. This 

is an effort that will continue in

1980.

Evaluating comment on proposed 

regulations by the industry and the 

public is a major task. In 1 979 the 

Corporation received more than 

1,500 such letters.

Staff attorneys also drafted the 

final regulation to implement the 

International Banking Act. The undertaking required innovation and imagination because the law gives the 

FDIC an assignment in a new area.

Finally, the Legal Division served 

as the FDIC's formal enforcement 

arm in handling the various cease 

and desist, removal and insurance 

termination cases described under 

"Enforcement Proceedings."

RESEARCH ACTIVITIES

The FDIC experienced continuing 

strong demand in 1979 for support 

and assistance by its research organization.

The Division of Research continuously monitors developments in the 

financial industry and the economy 

and assesses the implications of 

existing and proposed regulations,

proposed legislation and virtually all 

policy issues that will require consideration by the FDIC Board.

Some of the economic and financial subjects studied this year were 

deposit insurance reform, new or 

m odified types of deposit accounts, the condition of commercial 

and mutual savings banks, operations of foreign banks in the U.S., 

rising inflation and interest rates, 

State usury ceilings, prospects for 

the housing industry, Federal 

Reserve membership, and the impact of payment of interest on transaction accounts (NOW accounts, 

automatic transfer accounts, telephone transfer services, etc.).

In addition to conducting economic and financial studies of direct policy interest to the Board of 

Directors, the Division of Research 

assisted in activities of other parts of 

the Corporation, such as: an evaluation of bank capital adequacy; the 

current environment and prospective developments in electronicfund 

transfer systems; the effectiveness 

of cease-and-desist orders in correcting unsafe and unsound banking practices; an assessment of current and prospective activity by commercial banks in financial futures 

markets; and studies of fin a n ­

cial considerations in the disposition of acquired assets and liquidation accounting procedures. Research personnel also assisted the 

Legal Division as consultants or expert witnesses in legal suits involving the Corporation.

Major interagency activities involved analyses for three task forces 

created by Congress or the President. These task force studies addressed deposit interest rate ceilings and housing finance (Regulation Q), branching by financial 

institutions (McFadden Act) and the 

treatment of U.S. banks by other 

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30 FEDERAL DEPOSIT INSURANCE CORPORATION

ment of Commerce task force on the 

role of government in the electronic 

fund transfer field.

A major study that required a coordinated effort on the part of a 

number of Corporation divisions 

and offices was an analysis of capital adequacy in the banking industry. An internal task force was 

formed in June 1978 to study the 

issue of capital adequacy. The task 

force addressed two broad questions:

(1) Is there a capital problem in 

the industry, and, if so, how severe is it?

(2) What are the alternative solutions for dealing with the bank 

capital situation?

These questions obviously encompass many of the policy considerations that bank supervisors deal 

with every day. Phase I of the study, 

which was com pleted in September 1979, concluded that, despite the extended declining trend in 

capital ratios for the industry, the 

smaller capital margins have not 

imperiled the safety and soundness 

of banks. The report set forth the 

need for constant review of regulatory policies in light of the impact of 

changing risks on the capital position of banks. This assessment of the 

bank capital situation included, 

along with the important safety and 

soundness aspects, the implications for the structural and competitive prospects for banks in an increasingly complex financial environment.

Phase II of the study is focusing on 

alternative solutionsto the bankcapital situa tion. It is specifically 

addressing capital standards, the 

role of subordinated debentures, and 

holding company capitalization of 

subsidiary banks.

COMPUTER MANAGEMENT

SYSTEMS

Computer services generally continued to play an expanding role in 

FDIC operations in 1979 under the 

supervision of the Division of Management systems and Financial Statistics (DMSFS). National banks 

were added to the FDIC's system of 

processing Reports of Condition 

and Income of 9,200 State nonmember banks, involving an additional 

4,600 reports, including the more 

complex reports of larger banks. 

National bank reports were transferred from the OCC to the FDIC to 

achieve the savings, efficiency and 

consistency of a single system. The 

FDIC absorbed the cost. Hereafter, 

the FDIC will handle all requests for 

national as well as State nonmember bank data. The Federal Reserve 

collects corresponding data for 

State member banks and provides 

this information for incorporation 

into the FDIC data base.

The FDIC's Integrated Monitoring 

System (IMS) performs certain basic 

tests from data submitted by banks 

in their Reports of Condition and 

Income. These tests measure a 

bank's capital adequacy, asset quality, liquidity, asset and liability mix 

and growth, and profitability. If a 

bank fails one or more of the tests, 

further analysis of additional data 

available from the system is performed. Where analysis indicates an 

adverse condition or a potential 

problem, appropriate supervisory 

action is initiated. The IMS enables 

the Corporation to identify with 

greater accuracy banks, or particular aspects of a bank's operation, 

that merit closer supervisory attention, thereby allowing swifter and 

more effective response.

In 1979 the Comparative Performance Report (CPR) served to supplement the IMS reports distributed 

to FDIC examiners and financial analysts. This report was a revision of 

the Com parative Performance 

Tablesthe FDIC regularly has sentto 

all insured banks since 1967, and 

shows both individual bank data and

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SPECIAL SERVICES 31

peer group data based on information from Reports of Income and 

Condition. A similar report for yearend 1979 is to be sent to insured 

non member banks and to examiners 

and financial analysts for their use 

with IMS information.

The Corporation expects to achieve 

further savings and efficiency by 

sharing its processed bank data 

base with Federal and State authorities through a teleprocessing system. Seven States and the OCC are 

already connected, and the Federal 

Reserve Board is expected to have 

its link by March 1980. The New 

York Banking Department is proposing to dispense with its separate 

Report of Condition and Income in 

favorof theone its banks file with the 

FDIC. Michigan authorities are seeking approval of a simplified examination report made possible by the 

tie-in to the FDIC computerized data 

base.

The system aids supervision by 

giving FDIC Regional Offices immediate access to the bank data base 

and to the bank monitoring system. 

This permits improved scheduling of 

bank examinations and more effective bank examinations because examiners can focus their attention on 

particular areas of concern. The system adapts quickly to special monitoring requirements and provides a 

range of financial analysis facilities 

that assist in special studies and 

further improvement of the bank 

monitoring system.

DMSFS will seek ways to improve 

internal Corporation management 

systems in 1980. The division will 

provide computer support next year 

for refinement of the new liquidation 

accounting system, implementation 

of the new system for tracking outside legal fees involved in closed 

banks, and development of a new 

recruiting system for examiners. A 

new payroll accounting system is 

also in the planning stage for 1 980.

Accounting Standards and Instructions. The quality of financial reporting by the banking industry is of 

utmost concern to the Corporation, 

since it is integral to decisions made 

in furtherance of the FDIC's various 

statutory responsibilities. The Corporation recognizes that financial 

statements of banks should reflect 

business and economic reality. Accordingly, representatives from the 

Corporation cooperate with other 

Federal agencies and professional 

organizations in continuous efforts 

to evaluate financial reporting requirements and to improve the quality of data provided to the public and 

the Corporation by insured State 

nonmember banks.

SPECIAL SERVICES

The Office of Legislative Affairs 

(OLA) includes the Office of Information, which is the Corporation's main 

point of contact with the public and 

the news media. In 1 979 the Office 

of Information responded to an average 100 telephone calls and 150 

written requests each day. The Office is responsible for the preparation and distribution of letters to 

banks and FDIC staff describing proposed or adopted regulations or policies, the Corporation's annual report, news releases and other literature describing FDIC operations and 

procedures.

The information Office also works 

jointly with the Office of the Executive Secretary in administering the 

Corporation's reporting service on 

the FDI Act and regulations and 

related statutes.

The Office of Legislative Affairs is 

also responsible for receiving and 

obtaining responses to Congressional correspondence and telephone 

inquiries and for coordinating other 

communications with Congress. In 

addition, the Legislative Counsel in 

OLA responded to 33 requests in

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

1979 from Congress and 19 from 

the Office of Management and Budget for detailed and in some cases 

extensive comments on proposed 

legislation and to numerous other 

requests for information.

The FDIC Office of Corporate Audits performed 53 audits of various 

aspects of Corporation activities in

1979, one more than in 1978. Audits are designed to determine 

whether financial, fiscal and accounting operations are properly 

conducted and fairly presented, 

whether laws and regulations are 

complied with, and whether resources are managed efficiently and desired objectives met.

The Office of the Executive Secretary performs corporate secretarial 

functions, such as issuing notices of 

all meetings of the Board of Directors and the FDIC's standing committees, recording all votes and 

minutes of these meetings, maintaining an index of all official actions 

of the Corporation, publishing in the 

Federal Register notices of proposed or final rulemaking, and receiving the thousands of public comments on proposed regulatory actions.

In 1 979 the Executive Secretary's 

staff performed secretarial functions for 116 Board meetings. The 

Office also provided the necessary 

staff coordination for 17 proposed 

regulatory actions on which public 

comment was received.

The Office of the Executive Secretary administers Corporation compliance with the Freedom of Information Act, the Government in the 

Sunshine Act and the Privacy Act of 

1974. It also performs editorial functions in connection with the FDIC's 

loose-leaf reporting service on laws, 

regulations and related materials.

In addition, the Executive Secretary serves as the Corporation's Ethics Counselor under the Ethics in 

Government Act of 1 978 and FDIC's

own regulations. This official also 

serves as the Corporation's Records 

Management Officer.

The Office of the Controller is 

responsible for the preparation of 

both the administrative and the liquidation budgetsandforall accounting functions. The Controller's office 

also performs a number of important additional functions, including 

headquarters building services, printing and mailing, telecommunications, 

purchasing, library services and 

administration of assessments. A 

major function of the Controller's 

Office is management of the FDIC 

insurance fund which totaled $9.8 

billion at the end of 1979, up $1 

billion from 1978. All FDIC uncommitted cash is invested in U.S. government securities.

PERSONNEL

Board of Directors. The FDIC is 

headed by a three-member Board of 

Directors, including the Comptroller 

of the Currency who acts as an exofficio member. Two of the directors are appointed by the President 

with the advice and consent of the 

Senate for six-year terms, and one is 

elected Chairman by the Board. The 

Comptroller is also appointed by the 

President, but for a five-year term.

Mr. Irvine H. Sprague succeeded 

Mr. George A. LeMaistre as Chairman of the Board of Directors on 

February 7, 1 979. Mr. John G. Heimann, Comptroller of the Currency, 

had served as the Acting Chairman 

since Mr. LeMaistre's retirement on 

August 1 5, 1 978. Chairman Sprague 

previously served as a member of 

the Corporation's Board of Directors 

from September 27,1 968, until February 1 5, 1 973.

Director William M. Isaac continued to serve his term as a member of 

the Board of Directors. Comptroller 

Heimann continued to serve as an ex 

officio member of the Board of

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PERSONNEL 33

Directors.

Employees. The employment of 

the Corporation decreased by 179 

in 1 979, to a year end total of 3,598. 

Turnover in FDIC employment for 

the year was 1 3.4 percent (including 9.4 percentfor bankexaminers), 

compared to an estimated government-wide turnover rate of nearly 

25 percent.

Average grade and salary of the 

FDIC workforce in 1979 were GG9.4 and $ 1 9,958.

The Corporation's Office of Personnel Management oversees employee benefits, recruiting and hiring, and position management and 

classification. The Office of Employee Relations administers the Corporation's equal employment opportunity and labor relations programs.

The Corporation continued to improve its record in hiring women and 

minorities this year. In the GeneralGraded Workforce, women employees increased to 30.5 percent in 

1 979. up slightly from 30.1 percent 

in 1978. Minorities represented

NUMBER OF OFFICIALS AND EMPLOYEES

OF FEDERAL DEPOSIT INSURANCE CORPORATION

DECEMBER 31, 1978 AND 1979

W ashington Regional and

Unit Total office field office

1979 1978 1979 1978 1979 1978

Total .........................................

D ire c to rs ...............................

‘ Executive O ffic e s ................

Legal D iv is io n ......................

Division of Bank

S upervision .......................

Division of Liquidation ___

Division of M anagem ent 

Systems and Financial

S ta tistics.............................

Research D iv is io n ...............

Office of the C o n tro lle r......

O ffice of C orporate

A u d its ...... ...........................

O ffice of Consum er Affairs

and Civil R ights.................

O ffice of Employee

R elations.............................

Office of Personnel

M anagem ent......................

Office of Legislative

A ffa irs ..................................

‘ ‘ O ffice of Executive

S e c re ta ry ............................

3,598 3,773 956

2 2 2

15 32 15

100 105 83

2,521 2,6 48 159

43 2 459 186

187 191 187

25 31 25

181 186 164

33 34 33

19 13 19

8 9 8

44 46 44

16 5 16

15 12 15

1,201 2,642 2,572

2 0 0

32 0 0

86 17 19

3 7 6 2 ,3 62 2 ,2 72

194 246 265

191 0 0

31 0 0

170 17 16

34 0 0

13 0 0

9 0 0

46 0 0

5 0 0

12 0 0

‘ O ffice of Executive Secretary included in Executive O ffices in 1 978. 

“ O ffice of Inform ation included in O ffice of Legislative Affairs in 1 979.

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34 FEDERAL DEPOSIT INSURANCE CORPORATION

1 4.8 percent of the General-Graded 

Workforce, compared to 14.3 percent the previous year. Women in 

bank examiner jobs (including student assistants) assigned to the 14 

regions increased from 13.4 percent to 1 3.8 percent and minorities 

in such positions increased from 8.2 

percent to 8.5 percent.

A Chairman's Task Force is seeking ways to improve opportunities 

for women and minorities and considering other reforms such as part 

time employment opportunities.

Personnel Administration. The 

FDIC in 1 979 adopted several important new personnel policies and programs. These included policies governing leave usage, probationary 

periods for supervisors and managers, and inhouse and outside training. Position management and classification projects included: implementation of a new pay system for all field 

liquidation support personnel, completion of a two-year study of the 

management structures of the 14 

Regional Offices, a study of the levels 

of duties and responsibilities of field 

office supervisor positions, and institution of an annual review of all Corporation position descriptions for accuracy and completeness.

This was the first full year of operation under a new merit promotion 

program and a new incentive 

awards program, both of which were 

adopted in 1978. The Corporation 

in 1 979 processed 318 selections 

under the new internal placement 

program and granted 40 monetary 

incentive awards. At the Corporation's Awards Ceremony on December 19, 1979, 1 04 employees were 

recognized for 1 5, 25, 35 and 40 or 

more years of service. Also, three 

employees received special honorary awards:

Chairman's Award Betty L. Freese 

Exceptional service by 

a non-examiner employee

Edward J. Roddy Lewis C. Beasley 

Award

Exceptional service by 

an examiner

Nancy K. Rector Terryl L. Paiste 

Award

Exceptional service of 

a humanitarian nature

Examiner Training. The Corporation conducts a comprehensive training program designed to maintain a 

highly-qualified, well-informed examiner staff. During 1 979 more 

than 2,200 students received training in such areas as bank examination fundamentals, accounting and 

auditing techniques, credit appraisal, management and supervision, 

financial analysis, consumer and 

civil rights compliance, examination 

of computerized banks and trust department examinations. Programs 

are conducted in the Division of 

Bank Supervision's modern training 

center located in Rosslyn, Virginia.

In addition to FDIC examiners, 

about 270 studentsfrom State Banking Departments, foreign governments and other Federal agencies 

participated in FDIC-sponsored training progams during the year.

Six programs involving 208 students were held in 1 979 under the 

aegis of the Federal Financial Institution Examination Council. It is anticipated that such training will be 

expanded into areas as consumer 

protection, white collar crime and 

international banking during 1980.

FINANCES OF THE

CORPORATION

Deposit Insurance. Federal deposit insurance covers the aggregate deposits of individuals and businesses in each insured bank up to 

$40,000 and Individual Retirement 

Accounts and Keogh accounts up to 

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FINANCES OF THE CORPORATION 35

its held by government units (except 

deposits in out-of-State banks) are 

insured up to $100,000 for each 

depositor. On December 31, 1979, 

more than 97 percent of all commercial banks in the United States 

and about 70 percent of all mutual 

savings banks were covered by Federal deposit insurance.

Deposit Insurance Fund. The Corporation's deposit insurance fund 

provides the basic resource for the 

protection of depositors. It is the 

excess of the Corporation's assets 

over its liabilities and represents the 

net income accumulated since the 

beginning of deposit insurance in 

1 933. Should additional funds ever 

become needed, the Corporation, 

under authority granted but never 

exercised, may borrow up to $3 billion from the U.S. Treasury.

The deposit insurance fund 

amounted to $9.8 billion at the end 

of 1979, an increase of more than 

$1 billion since the end of 1978. 

This increase was $194 million 

greater than the increase for 1 978 

and twice the increase in 1 974. Net 

assessments incurred by insured 

banks in 1 979 were $356 million, or 

3 percent less than they incurred in

1978. The year-to-year improvement in revenue reflects the Corporation's ability to take advantage of 

the particularlyfavorablechanges in 

the interest rates earned on its expanding portfolio of government securities, and a more favorable than anticipated recovery experience on assets acquired from failed banks.

During the past several years, the 

deposit insurance fund has remained at about 1.2 percent of total 

insured deposits. While there is no 

actuarial consensus as to what the 

appropriate amount of the fund should 

be, the basic strength of the fund has 

been demonstrated by thefactthat it 

has been more than sufficient to 

meet all requirements made upon it, 

even during the larger-than-usual

bank failures of 1973-78. During 

this period the assets of those bank 

failures amounted to $7.7 billion; 

whereas, by the end of 1979 the 

Corporation had reduced the book 

value figure for all banks in liquidation to about $1.9 billion. In addition, during recentyears, the Corporation has set aside $227 million to 

cover possible insurance losses on 

liquidations currently in process, 

and increased its administrative budget to meet rising costs and broadened responsibilities. The deposit 

insurance fund increased 60 percent, from $6.1 billion at the end of 

1974 to $9.8 billion at the end of

1979, the largest percentage increase for anyfive-year period since 

World War II.

Income and Expenses. The Corporation's gross revenues amounted to 

$1.6 billion in 1979. Of the total 

revenue, $882 million was from assessments payable by insured banks 

for deposit insurance, $704 million 

from interest on investments in U.S. 

Government securities, and $30 million from notes receivable and other 

sources.

Since 1935, the basic assessment 

rate paid by insured banks has been 

1 /1 2 of one percent of total assessable deposits. Legislation enacted 

in 1 950 in effect reduced the statutory rate of assessment by providing 

a 60 percent credit to be applied 

against gross assessments levied 

each year. This credit to insured 

banks was increased to 66 2 /3 percent on December 31, 1961. This 

percentage is applied to the gross 

assessment due from banks in the 

calendar year after subtracting the 

Corporation's administrative and 

operating expenses, nonrecoverable 

insurance expenses, and additions 

to reserves for losses in the calendar 

year. Thus, although banks were initially assessed $882 million 1979, 

they received assessment credits of 

$526 million, which resulted in net

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

Millions of dollars 

1,600—r

APPLICATION OF REVENUES

FEDERAL DEPOSIT INSURANCE CORPORATION

1969 — 1979

1.400-

1,200

1,000

800

60 0 -

400-

200 -

m Expenses and Provision for Losses 

I I Assessment Credits

] Additions to Insurance Fund

TOTAL REVENUES

1 969 '70 '71 '72 '73 '74 '75 '76 '77 '78 '79

assessments of only $356 million. 

This sum is equivalent to 1 /3 0 of 

one percent of assessable deposits 

and compares with 1/26 of one 

percent in 1978.

The Corporation's administrative 

and operating expenses were $ 107 

million in 1 979, an increase of less 

than four percent from 1978 despite rising costs and the Corporation's expanding responsibilities 

with respect to bank supervision and 

consumer affairs. For the first time

since 1972, the provision for insurance losses and the nonrecoverable insurance expenses were reduced during 1979. The reduction 

of $55 million reflected the relatively small size of each of the banks 

that failed during theyearand better 

than expected collections on liquidations involving earlier bank failures.

GAO Audit. In addition to the 

FDIC's continuing internal audit activity, the General Accounting Office

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FINANCES OF THE CORPORATION 37

continued to conduct an annual 

audit of the financial operations of 

the Corporation. In addition, under 

the Federal Banking Agency Audit 

Act (Public Law 95-320), enacted in

1978, the General Accounting Office also continued to conduct periodic performance audits of the Corporation. These performance audits 

primarily concentrated on: bank supervision, with particular emphasis 

on the examination process and the 

supervision of bank holding companies; foreign banking activity in 

the U.S.; identification and disclosure of problems in the banking system; consumer related compliance 

examinations; and regulatory burden and structure. The results of 

both types of audit are reported to 

Congress.

Assets and Liabilities. The Corporation'sfinancial position continued

to improve steadily during 1979, 

resulting in a $ 1.0 billion increase to 

the deposit insurance fund. Total 

assets on December 31, 1979 

amounted to $10.4 billion. Cash 

and U.S. Government securities, valued at amortized cost plus accrued 

interest, amounted to $9.6 billion. 

The remaining assets represented 

primarily equity in assets acquired 

from failed banks, after allowance 

for reserves for losses. These assets 

include loans and notes purchased 

to facilitate deposit assumptions 

and mergers, subrogated claims 

against closed banks, and assistance to operating banks.

At the end of 1979, liabilities of 

the Corporation were $567 million. 

Of this total, $539 million represented assessment credits due insured banks which will be made 

available to them in 1 980.

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38 FEDERAL DEPOSIT INSURANCE CORPORATION

COMPARATIVE STATEMENT

OF FINANCIAL CONDITION (in thousands)

ASSETS:

December 31, 

1979

December 31, 

1978

Cash $ 1.523 $ 4,343

U.S. Government obligations: (Note 1)

Securities at amortized cost 9,449,595 8,210,441

Accrued interest 186,511 162,720

Total 9,636,106 8,373,161

Equity in assets acquired from deposit payoff

cases and insured banks assisted under

Section 13(e) of the FDI Act:

Depositors' claims paid 31,676 33,980

Depositors' claims unpaid 802 861

Loans and assets purchased 746,583 940,309

Assets purchased outright 18,391 19,104

Notes purchased plus accrued interest (Note 3) 133,627 135,568

Less allowance for losses (Note 2) 257,384 273,949

Total 673,695 855,873

Equity in assets acquired from insured banks

assisted under Section 13(c) of the FDI Act:

Assets purchased outright 22,143 23,936

Notes purchased plus accrued interest (Note 4) 37,000 37,028

Less allowance for losses (Note 2) 20,000 20,700

Total 39,143 40,264

Miscellaneous assets (Note 5) 2,765 2,759

Land and office building, less depreciation

on building 6,148 6,283

Total Assets $10,359,380 $9,282,683

The accompanying summary of significant policies and notes to financial statements are an integral part of

these statements.

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FINANCES OF THE CORPORATION 39

FEDERAL DEPOSIT INSURANCE CORPORATION

LIABILITIES AND THE

DEPOSIT INSURANCE FUND:

December 31, 

1979

December 31, 

1978

Accounts payable and accrued liabilities $ 5,309 $ 4,963

Earnest money, escrow funds, and

collections held for others 1,920 4,893

Accrued annual leave of employees 5,393 4,716

Due insured banks:

Net assessment income credits: 

Available July 1, 1979 

Available July 1, 1980 (Note 6)

0

524,672

443,101

0

Available excess credits (Note 7) 

Total

13,981

538,653

11,990 

455,091

Liabilities incurred in failures of insured banks:

Notes payable plus accrued interest (Note 8) 

Depositors' claims unpaid 

Total

14,571

802

15,373

16,166

861

17,027

Total Liabilities 566,648 486,690

Deposit Insurance Fund 9,792,732 8,795,993

Total Liabilities and the Deposit Insurance Fund $10,359,380 $9,282,683

The accompanying summary of significant policies and notes to financial statements are an integral part of

these statements.

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40 FEDERAL DEPOSIT INSURANCE CORPORATION

COMPARATIVE STATEMENT OF INCOME

AND THE DEPOSIT INSURANCE FUND (in thousands)

For the twelve months ended

December 31, December 31,

1979 1978

Revenues:

Assessments earned $ 881,970 $ 810,532

Interest on U.S. Government obligations 699,900 567,042

Amortization of premiums and discounts (net) 4,433 (1,264)

Interest earned on notes receivable 12,370 11,974

Other income 17,280 7,313

Total 1,615,953 1,395,597

Assessment Credits, Expenses, and Losses:

Provision for assessment credits 525,538 143,534

Administrative and operating expenses (net) (Note 10) 106,791 103,289

Nonrecoverable insurance expenses 4,137 5,409

Provision for insurance losses (17,252) 36,532

Loss on sale of securities 0 3,628

Total 619,214 592,392

Net Income 996,739 803,205

Deposit Insurance Fund-January 1 8,795,993 7,992,788

Deposit Insurance Fund-December 31 $9,792,732 $8,795,993

The accompanying summary of significant policies and notes to financial statements are an integral part of 

these statements.

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FINANCES OF THE CORPORATION 41

COMPARATIVE STATEMENT OF CHANGES

IN FINANCIAL POSITION (in thousands)

FEDERAL DEPOSIT INSURANCE CORPORATION

For the twelve

December 31, 

1979

months ended

December 31, 

1978

Financial Resources Were Provided From:

Operations:

Net deposit insurance assessments $ 356,432 $ 366,998

Interest on U.S. Government obligations 699,900 567,042

Interest on notes receivable 12,370 11,974

Other income 17.280 7,313

Total 1,085,982 953,327

Less:

Administrative and operating expenses,

net of depreciation 106,656 103,154

Nonrecoverable insurance expenses 4,137 5.409

Total 110,793 108,563

Resources provided from operations 975,189 844,764

Maturity and sale of U.S. Government obligations,

less, $3,628 net loss in 1978 879,975 794,469

Collections received on assets acquired in receivership and deposit assumption transactions 341,542 799,248

Increase in assessment credits due banks 83,562 26,355

Decrease in cash 2,820 4.320

Total financial resources provided $2,283,088 $2,469,156

Financial Resources Were Applied To:

Purchase of U.S. Government obligations $2,246,816 $1,686,705

Increase (decrease) in U.S. Treasury One-Day Certificates (132,120) 194,042

(Total purchases - $35,828,626 in 1979 and 

$37,679,123 in 1978 

Total maturities - $35,960,746 in 1979 and 

$37,485,081 in 1978)

Acquisition of Assets acquired in receivership and

deposit assumption transactions 141,078 554,280

Increase in accrued interest on securities 23,791 24,763

Net change in other assets and liabilities 3.523 9,366

Total financial resources applied $2,283,088 $2,469,156

The accompanying summary of significant policies and notes to financial statements are an integral part of

these statements.

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Federal Reserve Bank of St. Louis
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

42 FEDERAL DEPOSIT INSURANCE CORPORATION

General. These statements do not include accountability for assets and liabilities of closed insured 

banks for which the Corporation acts as receiver or liquidating agent. Periodic and final accountability 

reports of its activities as receiver or liquidating agent are furnished by the Corporation to courts, supervisory authorities, and others as required.

U.S. Government Obligations. Securities are shown at amortized cost which is the purchase price of 

the securities less the amortized premium or plus the accreted discount. Such amortization and accretion 

are computed on a daily straight-line basis from the date of acquisition to the date of maturity.

Deposit Insurance Assessments. The Corporation assesses insured banks at the rate of 1/12 of one 

percent per year on the bank's average deposit liability less certain exclusions and deductions. Assessments are due in advance for each six-month period and credited to income each month. Section 7(d) of 

the Federal Deposit Insurance Act states that each July 1, sixty-six and two-thirds percent of the Corporation's net assessment income from the prior calendar year be made available to insured banks as a prorated 

credit against the current assessment due.

Allowance for Losses. It is the policy of the Corporation to establish an estimated allowance for loss at 

the time a bank fails. These allowances are reviewed every six months and adjusted as required, based on 

the financial developments which accrue during each six-month period. The Corporation does not state its 

estimated contingent liability for unknown future bank closings because such estimates are impossible to 

make. The Corporation's contingent liability for eventual net losses depends upon factors which cannot be 

assessed until or after a bank has actually failed. The Corporation's entire deposit insurance fund and borrowing authority are available, however, for such contingencies.

Depreciation. The headquarters building is depreciated on a straight-line basis over a 50-year estimated 

life. The cost of furniture, fixtures, and equipment is expensed at time of acquisition.

Reclassifications. Certain reclassifications have been made in the 1978 financial statements to conform to the presentation used in 1979.

NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 1979 and 1978

1. U.S. Government Obligations. All cash received by the Corporation which is not used to defray operating expenses or for outlays related to assistance to banks and liquidation activities, is invested in U.S. Treasury securities. As of December 31,1979 the Corporation's investment portfolio consisted of the following:

Maturity Description

(In thousands)

Par Value Book Value Market Value Cost

1 -Day Special Treasury 

Certificates $ 141,922 $ 141,922 $ 141,922 $ 141,922

Less Than 

1 Year

U.S.T. Notes and 

Bonds 1,081,002 1,079,672 1,058,910 1,074,447

2-5 Years U.S.T. Notes and 

Bonds 3,799,920 3,799,232 3,524,120 3,799,448

6-10 Years U.S.T. Notes and 

Bonds 4,356,626 4,355,770 3,978,462 4,359,313

Over 10 Years U.S.T. Notes and 

Bonds 75,546 72,999 59,634 71,806

$9,455,016 $9,449,595 $8,763,048 $9,446,936

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FINANCES OF THE CORPORATION 43

FEDERAL DEPOSIT INSURANCE CORPORATION

2. Allowance for Losses. An analysis of the changes in the allowance for losses on the accounts described

below for years ended December 31, 1979 and 1978 follows:

1979 1978

Depositors' claims paid:

Balance, beginning of period $ 14,475,000 $ 16,032,000

Add (Subtract):

Provision charged to expense 4,100,000 300,000

Net adjustment to prior years (1,775,000) (1,214,000)

Write-off at termination 0 (643.000)

Balance, end of period 16.800,000 14.475.000

Loans and assets purchased:

Balance, beginning of period 240,763,500 210,709,400

Add (Subtract):

Provision charged to expense 9,255,000 7,505,000

Net adjustment to prior years (27,683,000) 23,735,100

Write-off at termination (11,500) (1,186.000)

Balance, end of period 222.324,000 240,763.500

Assets purchased outright:

Balance, beginning of period 39,410,000 33,400,000

Add (Subtract):

Provision charged to expense 0 0

Net adjustment to prior years (1,150,000) 6,010,000

Write-off at termination 0 0

Balance, end of period 38,260,000 39.410.000

$277,384,000 $294,648,500

3. Notes Purchased to Facilitate Deposit Assumptions. The Corporation's outstanding principal on 

notes receivable, purchased to facilitate deposit assumptions and mergers of closed insured banks under 

Section 13(e) of the Federal Deposit Insurance Act, at December 31, 1979 and 1978 are:

1979 1978

Clearing Bank

Marine National Exchange Bank of Milwaukee 

First Tennessee National Corporation 

First Tennessee National Bank 

Bank Leumi Trust Company of New York 

New Orleans Bancshares, Inc. 

European-American Bancorp.

Drovers Bank of Chicago 

Town-Country National Bank

$ 1,000,000

1.500.000 

16,000,000

8,000,000

8.750.000 

5,833,333

85,000,000

4,000,000

250,000

$ 1,000,000 

1,500,000 

16,000,000 

8,000,000 

10,000,000 

6,666,667 

85,000,000 

4,000,000 

250.000

$130,333,333 $132,416,667

4. Notes Purchased to Assist Operating Banks. The Corporation's outstanding principal on notes 

receivable, purchased under authority of Section 13(c) of the Federal Deposit Insurance Act, at December 

31, 1979 and 1978 are:

1979 1978

Unity Bank and Trust Company 

Bank of the Commonwealth

$ 1,500,000 

35.500,000

$ 1,500,000 

35.500.000

$37,000,000 $37,000,000

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44 FEDERAL DEPOSIT INSURANCE CORPORATION

5. Miscellaneous Assets. The Corporation's miscellaneous assets at December 31,1979 and 1978 are:

1979 1978

Receivables $1,719,000 $1,748,000

Prepaid Items 1,046,000 1,011,000

$2,765,000 $2,759,000

6. Assessment Credits Due Banks July 1,1980. The computation of net assessment income credits that 

will become available to banks on July 1, ‘1980 is as follows.

Computation:

Gross Assessment Income C.Y. 1979 

Less: Administrative and Operating Expenses 

Provision for Losses 

Insurance Expense 

Net Assessment Income

$106,791,000

(17,252,000)

4,125,000

$880,403,000

93,664,000

$786,739,000

Distribution:

1/3 to F.D.I.C.

2/3 to Insured Banks

$262,246,000

524,493,000 $786,739,000

Assessment Credit Available to Banks - July 1 

Assessment Credit C.Y. 1979 

Prior Years Credits

Assessment Credit Available July 1, 1980

1980:

$524,493,000 

1 79,000 

$524,672,000

Effective Rate of Assessment for C.Y. 1979: 1/30 of 1% of Total Assessable Deposits

7. Available Excess Credits. As of December 31,1979 and 1978, assessments receivable from insured 

banks reflected credit balances representing excesses of assessment income credits made available to 

insured banks on July 1, 1979 and 1978 over assessments due for the last six months of each calendar 

year. These excess credits continued to be available to insured banks at the beginning of the next assessment period in the following calendar years.

8. Notes Payable. These amounts represent the unpaid principal and accrued interest on the Corporation's 

unsecured notes designated "5.775% Series A Notes due January 1, 1988” and "5.775% Series B Notes 

due January 1, 1990'' as set forth in the consents, exchange agreement, and agreements of release and 

satisfaction related to the sale of Franklin Buildings, Inc. to European-American Bank and Trust Company.

9. Southern Bancorporation Note Receivable. On December 9, 1976, Southern Bancorporation repaid in 

full the $8 million note that the Corporation had purchased on September 24, 1974. Southern Bancorporation financed this transaction by obtaining a loan from First Union National Bank of North Carolina. To 

induce FUNB to enter the loan agreement, the FDIC agreed to guarantee the payment of 75 percent of the 

unpaid principal amount of the loan on the terms and conditions set forth in the guarantee agreement. As of 

December 31, 1979 and 1978, FUNB's outstanding principal due on the loan totaled $5.8 million and $6.6 

million, respectively.

10. Lease Commitments. Rental expense of $4,556,000 (1979) and $3,916,000 (1978) for office 

premises has been charged to expense. Minimum rentals for each of the next 5 years and for subsequent 

years thereafter are as follows:

1980 1981 1982 1983 1984 1985 or after

$4,249,000 $3,595,000 $3,359,000 $1,988,000 $1,492,000 $3,456,000

Most office premise lease agreements provide for increase in basic rentals resulting from increased property taxes and maintenance expense.

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Federal Reserve Bank of St. Louis
FINANCES OF THE CORPORATION

COMPTROLLER GENERAL OF THE UNITED STATES

W A S H IN G T O N . D .C . 20548

The Honorable Irvine H. Sprague 

Chairman, Board of Directors 

Federal Deposit Insurance 

Corporation

Dear Mr. Sprague:

Pursuant to section 17(c) of the Federal Deposit 

Insurance Act (12 U.S.C. 1827), we have examined the Statement of Financial Condition of the Federal Deposit Insurance 

Corporation as of December 31, 1979, and the Related Statements of Income and the Deposit Fund, Changes in Financial 

Position, and Analysis of the Deposit Insurance Fund. Our 

examination was made in accordance with the Comptroller 

General's standards for financial and compliance audits. We 

included such tests of the accounting records and such auditing procedures as we considered necessary in the circumstances. To the extent possible, we supplemented our audit 

procedures by using work of the Corporation's internal 

auditors.

In our opinion, the financial statements referred to 

above present fairly the financial position of the Federal 

Deposit Insurance Corporation at December 31, 1979, and the 

results of its operations and changes in its financial position for the year then ended, in conformity with both generally accepted accounting principles and the accounting principles prescribed by the Comptroller General applied on a 

basis consistent with that of the preceding year.

Sincerely yours

Acting '

of the United States

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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
CEASE-AND-DESIST ACTIONS 49

Actions to Terminate Insured Status

Federal Deposit Insurance Act-Section 8(a)

The Corporation has issued 42 termination of 

insurance orders since January 1971; nine were 

issued in 1979. In each case, the bank was 

found to be in unsafe or unsound condition.

A number of other termination of insurance 

actions have been recommended but w ith ­

drawn because of corrective action by the bank 

involved. As in the case of cease-and-desist 

actions, the threat of termination of insurance 

has caused many of the banks to take affirmative steps to correct deficiencies, thus eliminating the need for final action.

Summary of cases

Bank No.

34 Deposits— $50.5 million

Notice of intention to terminate 

insured status issued on February 16, 

1979. Bank ordered to provide acceptable m anagem ent; reduce adversely 

classified assets; establish an adequate 

loan loss reserve; cease extending 

credit to any borrower noted as a concentration and eliminate concentrations; adopt w ritten loan policies; take 

appropriate action to eliminate deficit 

net operating income; correct internal 

control deficiencies and institute a 

w ritte n audit program ; discontinue

cash dividends; increase capital; and 

provide an acceptable asset condition 

and a certain level of capital.

35 Deposits — $5.0 million

Notice of intention to terminate 

insured status issued on May 7, 1979. 

Bank ordered to provide acceptable 

management, increase capital; reduce 

adversely classified assets; establish 

an adequate reserve for loan losses; 

correct docum entation deficiencies; 

adhere to certain lending requirements 

based on a specified loan to deposit 

ratio; adopt written loan and investment policies; reduce concentrations 

of credit; correct internal control deficiencies; correct violations of laws, 

rules and regulations; and provide an 

acceptable asset condition and a certain level of capital.

36 Deposits — $3.5 million

Notice of intention to terminate 

insured status issued on May 21, 1979. 

Bank ordered to provide acceptable 

m a n a g e m e n t; re d u c e a d v e rs e ly

classified assets; obtain adequate 

documentation; cease extending credit 

to any borrower noted as a concentration and eliminate such concentrations; eliminate w ithout loss or liability 

to the bank extensions of credit by 

means of overdraft or cash item to 

insiders and cease extending such 

credit; adhere to specific guidelines 

regarding extensions of credit to 

insiders owning 10% of the bank's 

stock; reduce loan volum e; adopt 

acceptable w ritten loan and investm ent p o lic ie s ; p ro vid e adequate 

liquidity; correct internal control deficiencies and adopt a w ritten internal 

audit program; discontinue cash dividends; increase capital; and provide an 

acceptable asset condition and a certain level of capital.

Order terminated on July 9, 1979, 

after bank was closed.

37 Deposits — $35.9 million

Notice of intention to terminate 

insured status issued on June 7, 1979. 

Bank ordered to provide acceptable 

m anagem ent; adopt w ritte n loan, 

investment and operating policies w ith 

consideration given to liquidity needs; 

adhere to an outstanding supervisory 

corrective order; increase capital; and 

provide an acceptable asset condition 

and a certain level of capital.

Order terminated on July 2, 1979, 

after bank was closed.

38 Deposits — $15.3 million

Notice of intention to terminate 

insured status issued on July 2, 1979. 

Bank ordered to provide acceptable 

m a n a g e m e n t; re d u c e a d v e rs e ly 

classified assets; correct loan documentation deficiencies; adopt acceptable w ritte n loan and in v e s tm e n t 

policies; discontinue cash dividends; 

increase capital; and provide an a cceptable asset co n d itio n and a ce rtain level of capital.

Order terminated on November 5, 

1979, follow ing purchase and assumption by another bank.

39 Deposits— $4.7 million

Notice of intention to terminate insured 

status issued on July 30, 1979. Bank 

ordered to provide acceptable management; increase capital; reduce adversely classified assets; provide an adequate loan loss reserve; eliminate loan 

docum entation deficiencies; adopt 

acceptable w ritten loan policies; adopt

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

policies to ensure compliance w ith 

FIRIRCA; reduce concentrations of 

credit; discontinue cash dividends; and 

provide an acceptable asset condition 

and a certain level of capital.

40 Deposits— $16.2 million

Notice of intention to terminate 

insured status issued on August 13, 

1979. Bank ordered to provide acceptable m anagem ent and to increase 

capital.

41 Deposits — $87.9 million

Notice of intention to terminate 

insured status issued on September 17, 

1979. Bank ordered to increase capital; 

e s ta b lis h an adequate loan loss 

reserve; reduce adversely classified 

assets; establish a plan to control 

expenses; and provide an acceptable 

asset condition and a certain level of 

capital.

42 Deposits — $5.1 million

Notice of intention to terminate 

insured status issued on September 17,

1979. Bank ordered to provide acceptable management; adopt procedures to 

ensure maintenance of accurate books 

and records; provide for an audit 

program; reduce adversely classified

assets; increase capital; adopt w ritten 

loan and investment policies; discontinue cash dividends; and provide an 

acceptable asset condition and a certain level of capital.

Cease-and-Desist Actions

Federal Deposit Insurance Act-Section 8(b)

The Corporation has issued 189 cease-anddesist orders since January 1971, including 52 

in 1979. In addition, 24 temporary cease-anddesist orders were issued in that period, including six in 1979. In each case, the bank was 

ordered to cease and desist from unsafe or 

unsound practices and to take affirmative 

action to correct conditions. Several such 

actions are now in various stages of processing.

Also, a number of other cease-and-desist 

proceedings were terminated when the banks 

involved, in response to a threatened ceaseand-desist order, took affirmative steps to correct the problems.

In six other cases, tw o in 1979, formal w ritten agreements between banks and the Corporation were ratified by the FDIC Board of 

Directors. Noncompliance w ith these formal 

w ritten agreements can result in a cease-anddesist action.

Summary of cases

Bank No.

138 Deposits — $4.9 million

C onsent ce ase-and-desist order 

entered on January 10, 1979. Bank 

ordered to provide acceptable managem ent; reduce adversely classified 

assets; establish an adequate loan loss 

reserve; inject new capital; reduce 

overdue loans; adopt acceptable w ritten loan policies; establish a plan to 

control expenses; comply w ith laws, 

rules and regulations; and initiate 

appropriate action in connection w ith 

student loans in default.

139 Deposits — $16.4 million

C onsent ce a se -a n d -d e sist order 

entered on January 10, 1979. Bank 

ordered to inject new capital; reduce 

adverse classifications; establish an 

adequate loan loss reserve; correct 

loan d o c u m e n ta tio n d e fic ie n c ie s ; 

reduce overdue loans; adhere to its 

stated installm ent loan charge-off 

policy; comply w ith laws, rules and 

regulations; and discontinue cash dividends.

140 Deposits — $13.0 million

C onsent ce a se -a n d -d e sist o rder 

entered on January 10, 1 9 7 9 , to replace a tem porary order to cease-anddesist. Bank ordered to provide acceptable management; adopt acceptable 

w ritten loan policies; reduce adverse 

classifications; correct internal control 

and loan documentation deficiencies; 

formulate w ritten policies and procedures for investment of bank funds; 

and com ply w ith laws, rules and 

regulations.

141 Deposits— $13.5 million

C o n se n t c e a s e -a n d -d e s is t o rd e r 

entered on January 10, 1979, to replace a temporary order to cease-anddesist. Bank ordered to not engage in 

any business transactions w ith a certain affiliate, including but not limited 

to deposit relationships, loans to or for 

the benefit of the affiliate, its officers, 

d ire c to rs , sh a re h o ld e rs or o th e r 

insiders of the affiliate, loans or participations in loans purchased from or 

sold to the affiliate, and the purchase of 

goods or services from the affiliate; 

cease granting credit d ire ctly or 

indirectly to or for the benefit of a certain individual, his business interests or

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Federal Reserve Bank of St. Louis
CEASE-AND-DESIST ACTIONS 51

persons related to him, the affiliate or 

any insider or affiliate of the bank; to 

prohibit any of its employees from serving simultaneously as an employee of 

the affiliate or perform recordkeeping 

services for the affiliate; cease transacting any business of the affiliate in 

any authorized office of the bank or in 

offices owned, leased or otherwise 

controlled by the bank; and cease 

extending any credit to any parties 

secured in whole or in part by deposits 

in the affiliate.

142 Deposits — $13.0 million

C onsent ce a se -a n d -d e sist order 

entered on January 24, 1979. Bank 

ordered to provide acceptable management, reduce adverse classifications; 

eliminate adversely classified obligatio n s o f in s id e r s , s u b s ta n tia l 

stockholders, and/or their related 

interest; eliminate and cease extending 

credit in the form of overdrafts to 

insiders, substantial stockholders or 

c o m p a n ie s in w h ic h th e y are 

interested; establish specific procedures and/or guidelines w ith regard 

to outstanding extensions of credit to 

directors and substantial stockholders; 

eliminate adversely classified loans to 

and cease extending credit to borrowers who do not reside or conduct 

business w ithin the bank's normal 

trade area; declare a moratorium on 

renewals and extensions of installment 

loans; provide adequate collateral and 

credit file documentation; reduce loan 

volume; maintain an adequate loan 

loss reserve; adopt a loan policy; correct internal control deficiencies and 

adopt an internal audit program; comply w ith laws, rules and regulations; and 

discontinue cash dividends.

143 Deposits — $7.2 million

C onsent ce a se -a n d -d e sist order 

entered on January 24, 1979. Bank 

ordered to provide acceptable management; reduce adverse classifications; 

e lim in a te c ritic is m s p e rta in in g to 

assets listed for special m ention; 

e s ta b lis h an adequate loan loss 

reserve; adopt acceptable written loan 

policies, including provisions for credit 

extended to insiders; establish a 

charged-off loan ledger; comply w ith 

laws, rules and regulations; inject new 

capital; adopt acceptable w ritte n 

in v e s tm e n t p o lic ie s ; reduce loan 

volume; cease payment of compensation to directors w ithout prior supervisory approval; pro h ib it extending 

credit to insiders whose outstanding 

credit is adversely classified; levy service charges on all deposit accounts of 

insiders in the same manner and 

degree as levied on other deposit 

customers; and discontinue cash dividends.

144 Deposits — $4.1 million

C o n s e n t c e a s e -a n d -d e s is t o rd e r 

entered on January 24, 1979. Bank 

ordered to correct violations of consumer protection laws related to Financial Recordkeeping and Reporting of 

Currency and Foreign Transactions 

Regulations; Truth in Lending Act, 

Equal Credit Opportunity Act; Real 

Estate Settlement Procedures Act; and 

part 338 (Fair Housing) of the Corporatio n 's Rules and Regulations; and 

employ or designate a person to assure 

future compliance w ith all consumer 

and civil rights-related laws and regulations.

145 Deposits — $15.5 million

C onsent ce a se -a n d -d e sist order 

entered on February 16, 1979. Bank 

ordered to provide acceptable management; reduce adverse classifications; 

provide an adequate loan loss reserve; 

reduce overdue loans; adopt acceptable w ritte n loan and in v e s tm e n t 

policies; inject new capital; provide adequate internal control procedures; 

and correct violations of laws, rules and 

regulations.

146 Deposits — $6.3 million

C onsent ce a se -a n d -d e sist order 

entered on February 16, 1979. Bank 

ordered to inject new capital and provide an adequate loan loss reserve.

147 Deposits— $29.6 million

C onsent ce a se -a n d -d e sist order 

entered on February 16, 1979. Bank 

ordered to provide acceptable management; obtain supervisory approval for 

payment of management fees for services not p e rfo rm e d by sa laried 

employees; inject new capital; reduce 

adverse classifications; lim it credit to 

directors, officers, their affiliates and 

interests and any tw o or more unrelated directors, officers, their affiliates 

and interest where payment is based 

upon the assets of or revenue derived 

from the same source; reduce concentrations of credit, loan volume and 

overdue loans; not repurchase loans 

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

tions; adopt acceptable w ritten loan 

policies; reduce loans originating outside the bank's normal trade area; correct documentation deficiencies; and 

periodically review written policies and 

established procedures for co n formance.

148 Deposits — $131.9 million

C onsent ce a se -a n d -d e sist order 

entered on March 6, 1979. Bank 

ordered to provide acceptable management; reduce adverse classifications; 

establish adequate reserves for loan 

losses, other real estate, and Leeway 

Investments; provide adequate collateral and credit file documentation; 

cease extending credit to borrowers 

outside the bank's normal trade area 

except for one and tw o family residences; adopt acceptable written loan 

and investment policies; limit credit to 

any person or concern and any tw o or 

more unrelated obligors where payment is based upon the assets of or 

revenue derived from the same source; 

reduce c o n c e n tra tio n s of c re d it; 

increase surplus and reserves to a certain level; correct internal control deficiencies; and correct violations of laws, 

rules and regulations.

149 Deposits — $11.5 million

C onsent ce a se -a n d -d e sist order 

entered on April 2, 1979. Bank ordered 

to inject a cash contribution to surplus 

and obtain a formal, written, legal opinion from competent tax counsel concerning the proper valuation of the 

bank's building and premises for 

income tax purposes.

150 Deposits — $14.1 million

C onsent ce a se -a n d -d e sist order 

entered on April 2, 1979. Bank ordered 

to provide acceptable management; 

reduce adverse classifications; elim inate overdrafts; reduce loan volume 

and overdue loans; adopt acceptable 

w ritten loan and investment policies; 

provide an adequate loan loss reserve; 

correct docum entation deficiencies; 

correct violations of laws, rules and 

regulations; maintain complete and 

accurate board and loan committee 

minutes; maintain its general ledger 

and daily statement in conformance 

w ith generally accepted standards; and 

discontinue cash dividends.

151 Deposits— $17.6 million

C onsent ce a se -a n d -d e sist order 

entered on April 2, 1979. Bank ordered

to reduce adversely classified assets, 

assets listed for special mention, concentrations of credit, and loan volume; 

increase the interest rate charged on a 

loan to a certain insider; adopt acceptable w ritten loan policies; provide an 

adequate loan loss reserve; define its 

normal trade area and reduce, restrict 

and lim it extensions of credit to borrowers outside of the defined area; 

e lim in a te b o rro w in g s o th e r than 

securities sold under repurchase agreement; inject new capital; and correct 

violations of laws, rules and regulations.

152 Deposits — $6.1 million

C onsent ce a se -a n d -d e sist order 

entered on April 2, 1979 to replace a 

temporary order to cease-and-desist. 

Bank ordered to inject new capital; 

abide by certain restrictions regarding 

loan volume, sale of loan participations, 

and securities transactions; cease 

extending or renewing credit w ithout 

first obtaining certain specific documentation and correct documentation 

deficiencies; limit volume of overdrafts 

to a specified level; place certain 

restrictions on extensions of credit to 

borrowers residing outside its normal 

trade area; establish an adequate loan 

loss reserve; correct violations of laws, 

rules and regulatons; and discontinue 

cash dividends.

153 Deposits — $13.9 million

C onsent ce a se -a n d -d e sist order 

entered on April 2, 1979. Bank ordered 

to correct violations of consumer protection laws related to Truth in Lending 

A ct; Financial Recordkeeping and 

Reporting of Currency and Foreign 

Transactions Regulations; Equal Credit 

Opportunity Act; and employ or designate a person to assure future com pliance w ith all civil rights-related laws 

and regulations.

154 Deposits — $15.5 million

Consent ce a se -a n d -d e sist order 

entered on April 9, 1979. Bank ordered 

to provide acceptable management; 

reduce adverse classifications; reduce 

loan volume and adhere to certain 

restrictions regarding same; cease 

extending credit based on deposits that 

have a brokered origin; establish controls and procedures for extension of 

dealer floor-plan credit lines; adopt 

acceptable w ritten loan and overdraft 

policies; provide an adequate loan loss

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CEASE-AND-DESIST ACTIONS 53

reserve; correct loan documentation 

deficiencies; review and take necessary action w ith regard to expenditures 

related to travel, entertainment and 

legal services; correct internal control 

deficiencies; cease exercising trust 

powers w ithout supervisory approval; 

and correct violations of laws, rules and 

regulations.

155 Deposits— $5.4 million

C onsent ce a se -a n d -d e sist order 

entered April 9, 1979, Bank ordered to 

p ro vid e a cce p ta b le m an agem ent; 

reduce adverse classifications; limit 

credit to any person or concern and any 

tw o or more unrelated obligors where 

payment is based upon the assets of or 

revenue derived from the same source; 

cease extending additional credit to 

insiders or persons related to insiders 

whose credit is adversely classified; 

approve and establish reasonable 

limitations on sale of excess funds; 

reduce loan volume and adhere to certain restrictions regarding same; provide an adequate loan loss reserve; 

adopt acceptable w ritten loan, overdraft, and insider policies; correct loan 

docum entation deficiencies; cease 

purchasing any loan or other asset 

from any source in consideration for or 

to facilitate the sale of bank insider 

debt or debt of any person related to 

any insider of the bank; abide by certain restrictions related to the sale of 

other real estate or other bank assets; 

correct internal control deficiencies; 

maintain a certain level of adjusted 

capital and reserves; correct violations 

of laws, rules and regulations; and 

adhere to certain restrictions regarding 

payment of cash dividends.

156 Deposits— $21.0 million

C onsent ce a se -a n d -d e sist order 

entered on A pril 23, 1979. Bank 

ordered to provide acceptable management; reduce adverse classifications; 

reduce loan volume and adhere to certain restrictions regarding same; limit 

credit to any person or concern and any 

tw o or more unrelated obligors where 

payment is based upon the assets of or 

revenue derived from the same source; 

adopt acceptable written loan and 

other real estate policies; adhere to 

certain restrictions regarding extensions of credit of any kind to three certain individuals; extend credit secured 

by real estate w ithin governing law; 

provide an adequate loan loss reserve;

correct loan documentation deficiencies; provide an acceptable loan 

liability ledger; cease releasing collateral held to secure credit extended 

unless payment is received approximating the fair market value of the collateral released; and correct violations 

of laws, rules and regulations.

157 Deposits— $18.3 million

C onsent c e a se -a n d -d e sist order 

entered on May 21,1979. Bank ordered 

to correct violations of consumer prote ction laws related to Financial 

Recordkeeping and Reporting of Currency and Foreign T ra n sa ctio n s 

Regulations; Truth in Lending Act; 

Equal Credit Opportunity Act; Real 

Estate Settlement Procedures Act; and 

Parts 329 (Interest on Deposits) and 

338 (Fair Housing) of the Corporation's 

Rules and Regulations; and employ or 

designate a person to assure future 

compliance w ith all cited consumer 

and civil rights-related laws and regulations and the Corporation's Rules and 

Regulations.

158 Deposits— $2.3 million

C onsent ce a se -a n d -d e sist order 

entered on May 30, 1979. Bank ordered 

to provide acceptable management; 

reduce adverse classifications; adopt 

acceptable w ritten loan policies; provide an adequate loan loss reserve; correct loan documentation deficiencies; 

review and adopt necessary adjustments regarding salaries and employee 

benefits paid officers and employees; 

adopt plans and take affirmative action 

w ith regard to obtainment of adequate 

premises for the conduct of the bank's 

business; correct internal control deficiencies; discontinue cash dividends; 

and correct violations of laws, rules and 

regulations.

159 Deposits— $70.7 million

C onsent ce a se -a n d -d e sist o rd e r 

entered on June 11, 1979. Bank 

ordered to provide acceptable management for its trust department; conduct 

trust operations in accordance w ith the 

Corporation's Statement of Principles 

of Trust Department Management; correct trust department recordkeeping 

deficiencies; conduct an asset review 

of all trust accounts; correct other 

documentation deficiencies and note 

same in the trust committee minutes; 

obtain trust committee approval prior 

to opening any new trust account or 

closing any existing account and the

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54 FEDERAL DEPOSIT INSURANCE CORPORATION

purchase, sale or change regarding 

trust assets; establish and implement 

p rocedures to co n fo rm w ith the 

Employee Retirement Income Security 

Act; establish dual control procedures 

for all trust department assets; obtain 

independent legal counsel opinion 

regarding past and present operation of 

the common trust fund in accordance 

w ith the w ritten plan and the trust 

committee w ill review same; correct 

violations; establish a program to 

effectively supervise trust department 

operations; disclose certain transactions involving any trust account 

resulting in an adjustment which operates to the disadvantage of such trust 

account; disclose litigation pertaining 

to the operation of the trust department to, and establish an adequate 

reserve for same if deemed necessary 

by supervisory authorities; and provide 

necessary training of the bank's internal audit personnel in auditing procedures for the bank's trust department.

160 Deposits— $16.9 million

C onsent ce a se -a n d -d e sist order 

entered on June 18, 1979. Bank 

ordered to provide acceptable management; reduce adverse classifications; 

eliminate and cease extending credit to 

borrowers who do not reside or conduct business w ithin its defined trade 

area; adopt acceptable written loan 

policies; establish an adequate loan 

loss reserve; inject new capital; form ulate a liquidity policy; improve operating earnings; adopt an internal w ritten 

audit program and correct internal control deficiencies; obtain adequate 

blanket and excess employee d ishonesty bond coverage; correct violations of laws, rules and regulations; 

and discontinue cash dividends.

161 Deposits — $82.5 million

C onsent ce a se -a n d -d e sist order 

entered on June 18, 1979 to replace a 

temporary order to cease-and-desist. 

Bank ordered to adhere to certain 

restrictions regarding disbursement or 

payment of any monies, including credit extensions, to a certain holding com ­

pany and/or to any party wherein such 

disbursem ent w ould inure to the 

benefit of said holding company, or 

invoice the purchase of said holding 

company's stock w ithout prior supervisory approval.

162 Deposits — $13.7 million

C onsent ce a se -a n d -d e sist order 

entered on June 25, 1979. Bank 

ordered to provide acceptable management; reduce adverse classifications; 

cease extending additional credit to 

insiders or persons related to insiders 

whose credit is adversely classified; 

reduce loan volume and adhere to certain restrictions regarding same; adopt 

acceptable w ritten loan and investm e n t p o lic ie s ; d is c lo s e to th e 

shareholders all details on an insider 

credit life insurance agency operated 

on the premises; require approval by 

tw o-thirds of the shareholders of any 

decision not to retain such income for 

the bank, but in any event provide 

reasonable reimbursement to the bank 

for use of premises, personnel, and 

equipment; provide an adequate loan 

loss reserve; correct loan documentation deficiencies; correct internal control deficiencies; correct violations of 

laws, rules and regulations; and discontinue cash dividends.

163 Deposits— $5.0 million

C onsent ce a se -a n d -d e sist order 

entered on July 2, 1979. Bank ordered 

to provide acceptable management; 

reduce adversely classified assets; 

lim it credit to any director or officer of 

the bank or their affiliates and interests 

or any tw o or more directors or officers 

of the bank or their affiliates and 

interests where payment is based upon 

the assets of or revenue derived from 

the same source; lim it the total indebtedness to directors and officers of the 

bank, their affiliates and interests; 

reduce concentrations of credit; reduce 

loan volume and adhere to certain 

restrictions regarding same; adopt 

a cce p ta b le w ritte n loan p o lic ie s ; 

reduce overdue loans; correct loan 

docum entation deficiencies; provide 

an adequate loan loss reserve; adopt 

acceptable liquidity policies; adopt an 

a cce p ta b le w ritte n in te rn a l a u d it 

program and correct internal control 

deficiencies; periodically review w ritten bank policies and established procedures for conformance; comply w ith 

Title I of the Financial Institutions 

Regulatory and Interest Rate Control 

Act; and correct violations of laws, 

rules and regulations.

164 Deposits— $11.9 million

C onsent c e a se -a n d -d e sist order 

entered on July 2, 1979. Bank ordered

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CEASE-AND-DESIST ACTIONS 55

to provide acceptable management; 

reduce adversely classified assets and 

loans listed for special mention; reduce 

loan volume and adhere to certain 

restrictions regarding same; reduce 

overdue loans; adopt acceptable w ritten loan policies; provide an adequate 

loan loss reserve; correct loan documentation deficiencies; adopt acceptable liq u id ity policies; inject new 

capital; correct violations of laws, rules 

and regulations, including consumer 

protection laws; employ or designate a 

person to assure future compliance 

w ith all consumer and civil rightsrelated laws and regulations; and 

periodically review written policies and 

established procedures for conformance.

165 Deposits — $4.7 million

C onsent ce a se -a n d -d e sist order 

entered on July 9, 1979. Bank ordered 

to provide acceptable management; 

reduce adversely classified assets; 

reduce overdue loans; adopt acceptable w ritten loan policies; provide an 

adequate loan loss reserve; adopt 

acceptable liquidity policies; and correct loan documentation deficiencies.

166 Deposits — $69.4 million

C onsent ce a se -a n d -d e sist order 

entered on July 16, 1979. Bank ordered 

to provide acceptable management; 

reduce adversely classified assets; provide an adequate loan loss reserve; 

adhere to certain restrictions regarding 

loan volume; adopt adequate liquidity 

policies; maintain a certain level of 

total capital and reserves; correct 

violations of laws, rules and regulations; and discontinue cash dividends.

167 Deposits— $20.5 million

C onsent ce a se -a n d -d e sist order 

entered on July 16, 1979. Bank ordered 

to provide acceptable management; 

reduce adversely classified assets; 

adopt acceptable w ritten loan policies; 

adhere to certain restrictions regarding 

accounting for interest income on 

loans, loan participations sold, and loan 

volume; correct loan documentation 

deficiencies; review all loans and lines 

of credit to directors and their interests 

at least semi-annually; cease extending credit to directors whose loans are 

adversely classified unless adequate 

security is obtained and in conform ­

ance w ith applicable law; collect all 

outstanding loans to certain individuals 

and com panies unless adequate

security is provided, otherwise, same 

are to be charged off and new equity 

capital injected at least equal to the 

amount charged off; adhere to certain 

restrictions regarding the payment of 

any fee, c o m m issio n , charge or 

expense for legal services or services of 

a real estate agency or broker unless 

same is fully supported and documented; provide an adequate loan loss 

reserve; maintain a certain level of 

adjusted capital and reserves; correct 

violations of laws, rules and regulations; and discontinue cash dividends.

168 Deposits — $15.1 million

C onsent ce a se -a n d -d e sist order 

entered on July 16, 1979. Bank ordered 

to provide acceptable management; 

reduce adversely classified assets; collect all debts of any director or director's interests which are adversely 

classified; adopt acceptable written 

loan policies; provide an adequate loan 

loss reserve; reduce and adhere to certain restrictions regarding loan volume; 

and com ply w ith laws, rules and 

regulations.

169 Deposits— $17.3 million

C onsent ce a se -a n d -d e sist order 

entered on July 16, 1979. Bank ordered 

to reduce adversely classified assets; 

adhere to certain restrictions regarding 

the sale of loans or loan participations 

and documentation in the granting of 

extensions of credit; correct loan docum entation deficiencies; provide an 

adequate loan loss reserve; inject new 

capital; and comply w ith laws, rules 

and regulations.

170 Deposits— $4.7 million

C onsent ce a se -a n d -d e sist order 

entered on July 16, 1979 to replace a 

temporary order to cease-and-desist. 

Bank ordered to adhere to certain 

restrictions regarding extensions of 

additional credit in the form of cash 

items, overdrafts, or any paym ent 

a g a in st u n c o lle c te d fu n d s; cease 

extending credit guaranteed in whole 

or in part by the Farmers Home 

A dm inistration, the Small Business 

Adm inistration, or any other agency of 

the United States Government; and 

adhere to a specified dollar lim it in 

extending credit w ithout prior approval 

of a majority of directors or a com m ittee thereof w ho are not fu ll-tim e 

officers of the bank.

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

171 Deposits — $32.7 million

C onsent ce a se -a n d -d e sist order 

entered on July 23, 1979. Bank ordered 

to correct violations of consumer prote ction laws related to Financial 

Recordkeeping and Reporting of Currency and Foreign T ra n sa ctio n s 

Regulations; Truth in Lending Act; 

Equal Credit Opportunity Act; Real 

Estate Settlement Procedures Act; and, 

Parts 326 (Security and Controls 

Against External Crimes), 329 (Advertisin g of Interest or Dividends on 

Deposits), and 338 (Fair Housing) of the 

Corporation's Rules and Regulations; 

and employ or designate a person to 

assure future compliance w ith all consumer and civil rights-related laws and 

regulations.

172 Deposits — $62.8 million

C onsent ce a se -a n d -d e sist o rder 

entered on July 30, 1979 to replace a 

temporary order to cease-and-desist. 

Bank ordered to reduce adversely 

classified assets; reduce overdue loan 

volume; inject new capital and maintain a certain level of adjusted capital 

and reserves; discontinue purchase of 

or further speculation in the purchase 

or sale of G overnm ent N a tio n al 

Mortgage Association forward placement contracts; comply w ith laws, 

rules and regulations; and adhere to 

certain restrictions regarding payment 

of cash dividends.

173 Deposits— $10.0 million

C onsent ce a se -a n d -d e sist o rder 

entered on August 6, 1979. Bank 

ordered to provide acceptable managem ent; reduce adversely classified 

assets; reduce overdue loans and concentrations of credit; adopt acceptable 

w ritten loan policies; establish an adequate loan loss reserve; correct loan 

d ocum entation deficiencies; obtain 

w ritten verifications from banks to 

which loan participations have been 

sold regarding the bank's obligation to 

repurchase; inject new capital; and 

correct internal control deficiencies, 

including establishment of an accrual 

accounting system for the recording of 

discounted installment loan income.

174 Deposits — $103.9 million

C onsent ce a se -a n d -d e sist o rder 

entered on August 6, 1979 to replace a 

temporary order to cease-and-desist. 

Bank ordered to cease from entering 

into or consummating any transaction 

for the sale of any nonbook or classified

loan of the bank for any amount less 

than face value to any insider, former 

insider, person related to an insider or 

former insider, to a certain bank or to 

any insider or person related to an 

insider of that bank.

175 Deposits — $5.8 million

C onsent ce a se -a n d -d e sist order 

entered on August 13, 1979. Bank 

ordered to provide acceptable management; reduce adverse classifications; 

implement supervisory recommendations regarding loans listed for special 

mention; reduce loan volume and overdue loans; establish an adequate loan 

loss reserve; adopt acceptable written 

loan policies; inject new capital; and 

comply w ith laws, rules and regulations.

176 Deposits — $1.3 billion

Cease-and-desist order entered on 

August 21,1979. Bank ordered to comply w ith Section 329.8 (interest on 

deposits) of the Corporation's Rules 

and Regulations. In particular, the bank 

shall cause all visual advertisements 

for a period of three months, in daily 

newspapers selected in a manner 

designed to reach the greatest number 

of its depositors, to contain in a clear 

conspicuous manner a notice related to 

the com pounding of in te re s t/d iv idends; and establish an account that 

properly reflects the bank's liability 

from which customers may request 

re s titu tio n fo r u n d e rp a ym e n t of 

interest/dividends.

177 Deposits — $41.1 million

C onsent ce a se -a n d -d e sist order 

entered on August 20, 1979. Bank and 

individual respondents ordered to 

adhere to certain restrictions regarding 

the sale of loans or loan participations, 

docum entation in the granting of 

extensions of credit and loan volume; 

reduce and adhere to certain restrictions regarding extensions of credit to 

the interests of certain individual respondents; adopt acceptable written 

loan policies; establish an acceptable 

loan liability ledger; increase the rate of 

interest on outstanding obligations of 

certain individual respondents and 

establish a rate of interest for loans to 

individual respondents at the maximum rate for money market certificates of deposits permitted by applicable regulation plus specified percentage points; prepare a detailed report of 

all expenses charged to the bank by its

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CEASE-AND-DESIST ACTIONS 57

directors and other employees and 

reco ve r from the d ire c to rs and 

em ployees all personal expenses 

approved by the directors after a 

specified date; and comply w ith laws, 

rules and regulations.

178 Deposits — $40.0 million

C onsent ce a se -a n d -d e sist order 

entered on August 27, 1979. Bank 

ordered to provide acceptable managem ent; reduce adversely classified 

assets; adopt an acceptable written 

loan policy; reduce overdue loans; correct loan documentation deficiencies; 

e s ta b lis h an adequate loan loss 

reserve; reduce and maintain loan 

volume at a specified level; maintain 

adequate cash reserves and refrain 

from unnecessary borrowing to support liquidity; inject new capital; com ­

ply w ith laws, rules and regulations; 

and cause annual independent audits 

to be made.

179 Deposits — $11.0 million

C onsent ce a se -a n d -d e sist order 

entered on September 10, 1979. Bank 

ordered to reduce adversely classified 

assets; establish an adequate loan loss 

reserve; adhere to certain documentation restrictions prior to extending or 

renewing credit; request current financial data from all obligors whose extensions of credit are adversely classified; 

provide evidence of title and priority of 

liens on all real estate securing any 

applicable extension of credit and perfect any and all security interests on 

real or personal property; and comply 

w ith laws, rules and regulations.

180 Deposits— $37.2 million

C onsent ce a se -a n d -d e sist order 

entered on October 1, 1979. Bank 

ordered to provide acceptable managem ent; reduce adversely classified 

assets; adopt acceptable written loan 

policies, including guidelines for loans 

to insiders, principal shareholders and 

their interests; correct loan documentation deficiencies; adhere to certain 

limitations on extensions of credit to 

any one person, including any company or companies he or she may control; reduce concentrations of credit; 

adopt acceptable written investment 

policies, including adequate provisions 

for liquidity; inject new capital and 

submit a plan for the replacement of 

subordinated capital notes maturing in 

March 1981; take appropriate action to 

improve operating earnings; not enter

into any contractual agreements for the 

leasing of bank premises w ithout prior 

supervisory approval; and comply w ith 

laws, rules and regulations.

181 Deposits — $17.3 million

C onsent c e a se -a n d -d e sist order 

entered on October 15, 1979. Bank 

ordered to not have less than five directors on its board and not less than twothirds of the directors domiciled w ithin 

its state; have an outside audit conducted regarding the bank's expense 

accounts to determine which expense 

items paid by the bank were reasonable 

and normal bank expenses and which 

items were expenses of a personal 

nature to an insider, the latter to reimburse the bank for same; adopt an 

acceptable program for a m onthly 

review by the board of all expense 

items of the bank, including adequate 

d o c u m e n ta tio n and annual board

• approval of all salaries, allowances, 

bonuses and fees for officers, directors 

and employees; adhere to a certain 

percentage of average assets for a preceding year regarding total annual salary and bonus expense to be paid; 

adopt an audit program which shall 

include an annual audit by an outside 

accounting firm; prohibit its officers 

and employees from performing services during normal bank working hours 

for a certain insider, certain corporations, or any other entity owned or controlled directly or indirectly by that certain insider (other than the bank) w ith ­

out the bank receiving compensation 

for such services; cease extending 

loans to its affiliates in violation of a 

certain law and obtain adequate documentation and collateral for all loans to 

its a f f ilia t e s ; d is c lo s e to th e 

shareholders all details on an insider 

credit life insurance agency operated 

on the premises; and the board shall 

annually review and determ ine by 

appropriate resolution w hether the 

bank w ill continue to permit credit life 

insurance to be w ritten by bank personnel and/or w ritten on bank premises, incidental to bank loans, in connection w ith said insurance agency.

182 Deposits — $3.9 million

C onsent ce a se -a n d -d e sist order 

entered on October 15, 1979 to replace 

a temporary order to cease-and-desist. 

Bank ordered to discontinue cash or 

noncash bonus to directors, officers 

and employees; discontinue payment

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FEDERAL DEPOSIT INSURANCE CORPORATION

of management fees and/or director 

fees; provide information satisfactory 

to support the salary, fees and other 

direct remuneration paid to any director, officer or employee who does not 

serve as a full-tim e officer or employee; 

adhere to certain restrictions regarding 

any increases in salary and/or expense 

allowances of full-tim e officers and 

employees; adhere to certain lim itations and restrictions in the reimbursement of expenses to any officer, director or employee; review and document 

in the minutes of regular meetings of 

the board approval or disapproval of all 

detailed income and expense statements; cease payment of management 

fees to tw o certain former owners of 

the bank and seek reimbursement from 

three certain individuals for management fees paid to the tw o former 

owners; cease extending any additional credit to or for the benefit of 

directors, a certain former director, 

principal stockholders, or tw o certain 

former owners of the bank; adopt 

a c ce p ta b le w ritte n loan p o lic ie s ; 

reduce adversely classified assets; 

e sta b lish an adequate loan loss 

reserve; initiate and pursue all actions 

necessary to obtain reimbursement 

from three certain individuals for certain unsafe or unsound banking practices committed in connection w ith an 

agreement to purchase the bank from 

tw o former owners of the bank related 

to extensions of credit to and property 

conveyed to the former owners and 

obtain a specified amount of new 

capital by direct contribution from the 

three certain individuals; provide 

acceptable management; reduce overdue loans; comply w ith laws, rules and 

regulations; and discontinue cash or 

noncash dividends.

Deposits— $3.9 million

C onsent ce a se -a n d -d e sist order 

entered on October 15, 1979 to replace 

a temporary order to cease-and-desist. 

Two active directors and a former 

director ordered to cease acceptance 

or receipt of cash or noncash bank dividends; one of the directors and the 

former director are to cease acceptance or receipt of cash or noncash 

bonus or director fees and any increase 

in salary or other direct or indirect 

remuneration w ithout adequate documentation from the bank supporting 

same; reimburse the bank for a certain

extension of credit adversely classified 

loss, bank property conveyed, management fees paid, and for the difference 

between preferential interest rate and a 

nonpreferential rate given to the former 

owners of the bank on their real estate 

loans; and take steps to correct and 

comply w ith applicable laws, rules and 

regulations.

184 Deposits — $18.2 million

C onsent ce a se -a n d -d e sist order 

entered on October 22, 1979. Bank 

ordered to provide acceptable managem ent; reduce adversely classified 

assets; increase the number of nonofficer-directors on the loan committee 

from tw o to four and require the loan 

com m ittee to give prior approval 

regarding secured or unsecured extensions of credit over certain stated 

amounts; reduce overdue loans and 

loan volume; adhere to its overdraft 

policy; formulate an acceptable written 

liquidity policy; inject new capital; provide an adequate loan loss reserve; be 

made beneficiary on life insurance 

policies on which the premiums are 

paid by the bank; discontinue any 

fa v o ra b le tre a tm e n t to a c e rta in 

individual; increase fidelity insurance 

coverage to recommended level; and 

discontinue cash dividends.

185 Deposits — $6.3 million

C onsent ce a se -a n d -d e sist o rder 

entered on October 22, 1979. Bank 

ordered to provide acceptable managem ent; reduce adversely classified 

assets; collect and/or provide evidence 

that a certain adversely classified loan 

endorsed by an insider no longer warrants adverse classification; adopt 

acceptable w ritten loan policies; provide an adequate loan loss reserve; 

reduce loan volume and adhere to certain restrictions regarding same; correct loan documentation and internal 

control deficiencies; inject new capital; 

comply w ith laws, rules and regulations; and discontinue cash dividends.

186 Deposits — $17.0 million

C onsent c e a se -a n d -d e sist order 

entered on October 22, 1979. Bank 

ordered to provide acceptable managem ent; reduce adversely classified 

assets; lim it credit to any director or 

officer of the bank or their affiliates and 

interests or any tw o or more directors 

or officers of the bank where payment 

is based upon the assets of or revenue 

derived from the same source; lim it the

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CEASE-AND-DESIST ACTIONS 59

total indebtedness to directors and 

officers of the bank, their affiliates and 

interests; adhere to certain restrictions 

regarding specific adversely classified 

loans or related loans to a certain 

individual; adopt acceptable written 

loan policies; correct loan documentation deficiencies; provide an adequate 

loan loss reserve; adopt acceptable 

liquidity policies; adopt a policy establishing guidelines and procedures for 

the elimination of the excessive use of 

uncollected funds; adopt a policy and 

adhere to certain restrictions regarding 

overdrafts to past or present officers or 

directors or their interests and to a certain individual and his interests; correct violations of laws, rules and 

regulations; and inject new capital.

187 Deposits— $3.9 million

C onsent ce a se -a n d -d e sist order 

entered on December 10, 1979. Bank 

ordered to correct violations of consumer protection laws related to Financial Recordkeeping and Reporting of 

Currency and Foreign Transactions 

Regulations; Truth in Lending Act; 

Equal Credit Opportunity Act; and, 

parts 326 (Security and Controls 

Against External Crimes), and 345 

(Community Reinvestment Act) of the 

Corporation's Rules and Regulations; 

and employ or designate a person to 

assure future compliance w ith all consumer and civil rights-related laws and 

regulations.

188 Deposits— $59.2 million

C onsent ce a se -a n d -d e sist o rder 

entered on December 17, 1979. Bank 

ordered to provide acceptable managem ent; reduce adversely classified 

assets; increase the number of nonofficer-directors on the loan committee 

by one and require the loan committee 

to give p rio r app ro va l reg a rd ing 

secured or unsecured extensions of 

credit over certain stated amounts; 

reduce overdue loans, loan volume, and 

concentrations of credit; provide* an 

adequate loan loss reserve; formulate 

an acceptable w ritten liquidity policy; 

inject new capital; and discontinue 

cash dividends.

189 Deposits— $68.5 million

C onsent ce a se -a n d -d e sist order 

entered on December 17, 1979. Bank 

ordered to provide acceptable managem ent; reduce adversely classified 

assets; adopt an acceptable written

loan policy; provide an adequate loan 

loss reserve; and inject new capital.

Formal W ritten Agreem ent

Federal Deposit Insurance Act-Section 8(b)

Bank No.

5 Deposits— $199.9 million

W ritten agreement entered on September 10, 1979. Bank agreed to amortize certain purchase and servicing 

contracts on a straight-line basis over a 

12-year period beginning January

1980.

6 Deposits— $70.2 million

W ritte n agre e m e nt entered on 

November 5, 1979. Bank agreed to collect and/or improve the quality of certain insider loans subject to adverse 

classification and listed for special 

mention sufficient to warrant removal 

of the designations; reduce remaining 

adversely classified assets and loans 

listed for special m ention; adopt 

acceptable w ritten loan and investment policies; adhere to FDIC's published statement of policy concerning 

income tax remittance by banks to 

their holding company affiliates; provide an adequate loan loss reserve; and 

adhere to certain restrictions regarding 

payment of management, consultant or 

other fees of any nature to directors or 

their interests or the bank's holding 

company.

Temporary cease-and-desist actions

Federal Deposit Insurance Act-Section 8(c)

Bank No.

19 Deposits— $62.8 million

Temporary cease-and-desist order 

issued on January 10, 1979. Bank 

o rdered to ce a se -a n d -d e sist from 

further purchase of, or further speculation in, the purchase or sale of Government National Mortgage Association 

futures, excepting further purchases or 

sales of same on which the bank is presently legally obligated.

A permanent cease-and-desist order 

was issued on July 30, 1979.

20 Deposits — $6.1 million

Temporary cease-and-desist order 

issued on January 19, 1979. Bank 

ordered to ce a se -a n d -d e sist from 

extending credit exceeding a specified 

amount in the form of overdrafts or by

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

holding checks as cash items for any 

one customer or account; extending 

credit in violation of a certain state 

statute; and abide by certain restrictions regarding loan volume and the 

sale of any loan or participation in any 

credit.

A permanent cease-and-desist order 

was issued on April 2, 1979.

21 Deposits— $82.4 million

Temporary cease-and-desist order 

issued on May 7, 1979. Bank ordered to 

adhere to certain restrictions regarding 

the disbursem ent of any monies, 

including credit extensions, to a certain 

holding company and/or to any other 

party w herein such disbursem ent 

would inure to the benefit of said holding company.

A permanent cease-and-desist order 

was issued on June 18, 1979.

22 Deposits— $4.7 million

Temporary cease-and-desist order 

issued on May 25, 1979. Bank ordered 

to adhere to certain restrictions regarding extensions of additional credit in 

the form of cash items, overdrafts, or 

payment against uncollected funds; 

cease extending credit guaranteed in 

whole or in part by the Farmers Home 

A dm in istra tio n, the Small Business 

Adm inistration, or any other agency of 

the United States Government; and 

adhere to a specified dollar lim it in 

extending credit w ithout prior approval 

of a majority of directors or a com m ittee thereof who are not full time 

officers of the bank.

A permanent cease-and-desist order 

was issued on July 16, 1979.

23 Deposits — $3.9 million

Temporary cease-and-desist order 

issued on August 10, 1979. Bank 

ordered to cease paym ent of all 

m a n a g e m e n t and d ire c to r fees, 

bonuses, and dividends; raising any 

and all salaries to o ffic e rs and 

employees; extending any additional 

credit to or for the benefit of members 

of board of directors or principal 

stockholders; conveying the bank's 

assets w ithout adequate consideration; extending credit in violation of 

Federal Reserve Regulation 0; seek 

reimbursement for vehicles owned by 

the bank and conveyed to former 

o w n e rs; a sp e c ifie d a m o u n t of 

m anagem ent fees paid to form er 

owners, and a specified amount for 

loans classified loss granted to former 

owners.

A permanent cease-and-desist order 

was issued on October 15, 1979.

24 Deposits— $3.9 million

Temporary cease-and-desist order 

issued on August 10, 1979. Three certain active directors ordered to cease 

acceptance or receipt of dividends, 

b o n u s e s , d ire c to rs fe e s, s a la ry 

increases, conveying bank assets, making loans, and paying management 

fees w ithout adequate consideration, 

and any extension of credit from the 

bank; and, reimburse the bank for 

assets conveyed, loans made and 

management fees paid to tw o certain 

individuals in connection w ith an 

agreement to purchase the bank.

A permanent cease-and-desist order 

was issued on October 15, 1979.

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MERGER DECISIONS OF THE COf 

PART THREE

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Federal Reserve Bank of St. Louis
63

BANKS INVOLVED IN ABSORPTIONS APPROVED BY

THE FEDERAL DEPOSIT INSURANCE CORPORATION IN 1979

State Town or City Bank Page

Alabama Evergreen First Alabama Bank of Conecuh County

(in organization) 1 25

The Conecuh County Bank 125 

Opelika Lee C ounty Bank (in organization;

change title to The Bank of East

Alabama) 125

The Bank of East Alabama 125

Alaska A nchorage Alaska Pacific Bank 125

Alaska Interim Bank (in organization) 1 25

California Anaheim Heritage Bank 1 17

Fresno First National Bank of Fresno 108

Fullerton California Pacific Bank 119

Grass Valley Gold C ountry Bank 125

Gardena Republic Bank 119

Irvine Irvine National Bank 117

Liverm ore Valley Bank, National Association 108 

Los Angeles Sherman Oaks Branch—

M anufacturers Bank 102 

C alifornia Overseas Capital

Co., Inc. (in organization) 107

C alifornia Overseas Bank 107 

Los Angeles Surety National Bank (change title to

(P.O. Encino) California Overseas Bank) 107

Los Angeles (Sun Valley) Am erican Pacific State Bank 102

N ew port Beach International Central Bank 122

International Trust C orporation 1 22 

Oakland Central Bank 7 0 ,1 1 8 

San Francisco Bank of Am erica National Trust and

Savings Association 93 

The Hongkong Bank of California

(change title to Oakland Bank) 70 

San Rafael IBC Investment C orporation (in

organization) 125

South Lake Tahoe Tahoe National Bank 108

C onnecticut Hartford The Guaranty Bank and Trust Com pany 99

New Haven First Bank 99

Florida Bay C ounty Southeast Beach State Bank (change

(P.O. Panama City) title to Southeast Bank of Panama

City) 100 

Daytona Beach Barnett Bank of Daytona Beach (change 

title to Barnett Bank of Volusia

County) 72 

DeLand Barnett Bank of DeLand, National

A ssociation 72 

Delray Beach Barnett Bank of Delray Beach (change 

title to Barnett Bank of Palm Beach

County) 1 1 5

Hollywood Am erican Bank of Hollywood 118

Homestead First Am erican Bank of Homestead 98

Jacksonville Am erican A rlington Bank 110 

Am erican Beach Boulevard Bank (change

title to Am erican Bank) 1 10

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

State Town or City Bank Page

Am erican M andarin Bank 110

Southeast Bank of Edgewood 109

Southeast First Bank of Jacksonville 

(change title to Southeast Bank of 

Jacksonville) 109

Jacksonville Beach Southeast First National Beach

Bank 109

Lake W orth First M arine National Bank and Trust

Com pany of Lake W orth 96

M argate Florida Coast Bank of Coral Springs,

National A ssociation 97

North M iam i First Am erican Bank of Dade County 98

Panama City Southeast National Bank of Panama

City 100

Pembroke Park Pembroke Park Branch— Am erican Bank

(P.O. Hallandale) of Hallandale 1 18

Pompano Beach Florida Coast Bank of Pompano Beach

(change title to Florida Coast Bank 

of Broward County) 97

Riviera Beach First M arine Bank & Trust Com pany of

the Palm Beaches 96

Tequesta First M arine National Bank & Trust

Company, Ju p iter/T equesta 96

W est Palm Beach Barnett Bank of Palm Beach County 115

Georgia Albany Security Bank and Trust Com pany 125

Atlanta DuCorp. Inc. (in organization) 1 26

Colum bus CB&T, Inc. (in organization) 125 

Dalton First Railroad Bank of Dalton (in 

organization; change title to The

Bank of Dalton) 1 26

The Bank of Dalton 1 26

Doerun *Toney Brothers Bank 123

Duluth The Bank of D uluth 126 

Ham pton Interim -H am pton, Inc. (in

organization) 126

The Bank of Hampton 1 26

Lawrenceville G w innett Com m ercial Bank 125 

Trust Com pany of Gwinnett County (in 

organization; change title to

G w innett Com m ercial Bank) 125

M acon Georgia Bank and Trust Com pany 125 

Georgia Interim Com pany (in

organization) 125 

M arietta First Railroad Bank of Cobb County 

(in organization; change title to

The Com m ercial Bank of Cobb County) 1 26

The C om m ercial Bank of Cobb C ounty 1 26

M oultrie Am erican Banking Com pany 123

Illinois Chicago Independence Bank of Chicago 124

‘ Guaranty Bank & Trust Com pany 124

'G atew ay National Bank of Chicago 1 24 

Schaum burg H.S. Bank (in organization; change 

title to Suburban Bank of Hoffm anSchaum burg) 126

Suburban Bank of H offm an-S chaum burg 1 26

'Banks absorbed in "emergency" approvals under provisions of Section 1 8(c).

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 65

State Town or City Bank Page

Indiana Fort W ayne

Maine Lewiston

Liverm ore Falls

Portland 

South Paris

Maryland Baltim ore

Hagerstown

Hancock

Rockville

M assachusetts B urlington 

W altham

M ichigan

M ississippi

New Jersey

New York

Big Rapids

Clare

Olivet

Clinton

Leakesville

Vicksburg

W aynesboro

Bernardsville

Clayton

M orristow n

Albany

Buffalo

Fredonia

Genesee

Kingston

New York (Brooklyn) 

New York (M anhattan) 

Ossining

Syracuse

Tarrytown

S um m it Bank and Trust Com pany 

of Fort W ayne (in organization; change title 

to Indiana Bank and Trust Com pany of

Fort W ayne) 126 

Indiana Bank and Trust Com pany of

Fort W ayne 126

Northeast Bank of Lewiston and

A uburn 83 

Augusta and W aterville Branches—

Liverm ore Falls Trust Com pany 83

M aine Savings Bank 77

South Paris Savings Bank 77

A rlington Federal Savings

and Loan Association 89

Central Savings Bank 89

Equitable Trust Com pany 69

Antietam Bank Com pany 1 11

Peoples Bank of Hancock 111

University National Bank 69

BayBank M iddlesex, N.A. 101 

BayBank New ton-W altham Trust Com pany

(change title to BayBank M iddlesex) 101

Central M ichigan Bank and Trust 125

CMB Bank (in organization) 125

Citizens Bank and Trust Com pany 126

CBC Bank (in organization) 126

The Olivet State Bank 1 26

New State Bank of Olivet (in organization) 1 26

The Am erican Bank 69

Bank of Leakesville 87 

Bank of Vicksburg (change title

to The Am erican Bank) 69

First State Bank 87

Bernards State Bank 121 

Peoples Bank of South Jersey (in

organization) 125

Peoples Bank of South Jersey 125

The M orris County Savings Bank 121

Albany Savings Bank 75

M echanics Exchange Savings Bank 91

Erie Savings Bank 104 

Fredonia Savings and Loan

Association 104 

Genesee Valley National Bank and

Trust Com pany of Genesee 74

Heritage Savings Bank 75 

The Dime Savings Bank of

New York 91

Em igrant Savings Bank 72

Prudential Savings Bank 72 

W estchester County Savings and

Loan Association 90

First Trust and Deposit Com pany 74

Peoples W estchester Savings Bank 90

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

State Town or City Bank Page

North Carolina Conway

Fayetteville

Raleigh

W hiteville

Ohio Akron

Colum bus

Gallipolis

Harrisburg

Hopedale

M arion

Salem

Steubenville

Union Tow nship 

(P.O. M orristow n) 

W adsw orth 

Yorkville

Oklahoma Tulsa

Oregon Hood River

Lake Oswego 

M ilw aukie

Pennsylvania Lewisburg

M illville 

State College 

W illiam sport

South Carolina Colum bia

Florence

Trenton

Bank of Conway 103

Cape Fear Bank & Trust Com pany 97

Capitol National Bank 97

First-Citizens Bank & Trust Com pany 103 

W accam aw Bank and Trust Com pany 

(change title to United Carolina

Bank, W hiteville) 97

The Firestone Bank 1 1 6

Society Bank 122 

CS Bank (in organization; change 

title to The Com m ercial and Savings Bank) 1 25

The C om m ercial and Savings Bank 125

*The Am erican Bank of Central Ohio 1 22

Heritage Bank, N.A. — Hopedale 76 

The F. B. G. Bank of M arion (in 

organization; change title to The

M arion C ounty Bank) 125

The M arion C ounty Bank 125

Heritage Bank, N.A. — Salem 76 

Heritage Bank, N.A. — Steubenville

(change title to Heritage Bank) 76

The Eastern Ohio Bank 84

The Firestone Bank of W adsw orth 1 1 6

The C om m unity Savings Bank Com pany 84

C om m unity Bank & Trust Com pany 94

Com m unity Banksite, Inc. 94

Hood River C ounty Bank 126 

Hood River County Interim Bank (in

organization) 126

The C om m unity Bank 112

First State Bank of Oregon 1 1 2 

First State Interim Bank of Oregon

(in organization) 112 

The Union National Bank

of Lewisburg 80

The First National Bank of M illville 79

Central Counties Bank 80

Northern Central Bank 79

Bankers Trust of South Carolina 81 

=irst-Citizens Bank and Trust Com pany

of South Carolina 114

The Peoples Bank of South Carolina, Inc. 81

The Bank of Trenton 114

Texas Addison New Addison State Bank (in

organization; change title to Addison 

State Bank) 126

Addison State Bank 1 26

College Station B a n k o fA & M 125

Texas A & M Bank (in organization; 

change title to Bank of A & M) 125

‘ Banks absorbed in "emergency" approvals under provisions of Section 1 8(c).

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 67

State Town or City Page

Fort W orth

Houston

H utchins

Jacksonville

Pasadena

Taft

Collegiate State Bank of Fort W orth 

(in organization; change title to 

University Bank)

New Riverside Bank (in organization; 

change title to Riverside State Bank) 

Riverside State Bank 

University Bank 

Allied Cypress Bank (in organization)

Allied M ercantile Bank (in 

organization)

Am erican Bank (in organization) 

‘ Am erican National Bank 

Com m ercial State Bank 

Cypress Bank

M ercantile Bank of Houston (change 

title to Allied M ercantile Bank)

New Com m ercial State Bank (in 

organization)

New Port City Bank (in organization)

Port City State Bank 

New South Central Bank (in 

organization; change title to South 

Central Bank)

South Central Bank

Allied Texas Bank (in organization)

Texas Bank and Trust Com pany (change 

title to Allied Texas Bank)

San Jacinto State Bank 

South Street State Bank (in 

organization; change title to San Jacinto 

State Bank)

New First State Bank of Taft (in 

organization; change title to The 

First State Bank of Taft)

The First State Bank of Taft

125

125

125

125

126

126

124

124

126

126

126

126

126

126

126

126

126

126

125

125

126

126

Utah

V erm ont

Richfield

Barre

B urlington

Valley Central Bank

VC Bank C orporation (in organization)

Batreal, Inc. 

M erchants Properties, 

The M erchants Bank

Inc.

126

126

87

87

87

V irginia Chincoteague

Onley

Providence Forge 

W est Point

Bank of Chincoteague, Inc.

(change title to Farmers & M erchants 

Bank — Eastern Shore) 105

Farmers & M erchants National Bank 

in Onley 105

The Colonial Bank 86

Citizens and Farmers Bank 86

Other Areas 

Puerto Rico San Juan (Hato Rey) 

San Juan (Rio Piedras)

Scotiabank de Puerto Rico 

(in organization)

Banco M ercantil de Puerto 

Rico. Inc.

95

95

'Banks absorbed in "emergency" approvals under provisions of Section 18(c).

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

State Town or City Bank Page

Canada Halifax Puerto Rican Branches — The Bank of 

Nova Scotia 95

A rgentina Buenos Aires Rosario Branch — Banco Aleman 

Transatlantico 93

BANKS INVOLVED IN ABSORPTIONS DENIED BY

THE FEDERAL DEPOSIT INSURANCE CORPORATION IN 1979

Pennsylvania Conneautville

W arren

The Farmers National Bank of 

C onneautville 

The Pennsylvania Bank and Trust 

Com pany

127

127

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 69

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

The Equitable Trust

Company

Baltimore, M aryland

1,534,945 102 117

to merge with

U niversity National

Bank

Rockville, M aryland

124,875 15

Summary report by Attorney General, 

N ovem ber 13, 1978

The m erging banks are both w holly-owned 

subsidiaries of the same bank holding com ­

pany. As such, their proposed m erger is 

essentially a corporate reorganization and 

w ould have no effect on com petition.

Basis for C orporation Approval 

January 24, 1979

The Equitable Trust Com pany, Baltimore, 

M aryland (“ A p p lica n t” ), an insured State 

nonm em ber bank with total resources of 

$1,534,945,000 and total IPC deposits of 

$1,212,503,000, has a p plied pursuant to 

Section 18(c) and other provisions of the 

F ederal D e p o s it In s u ra n c e A ct, fo r th e 

FDIC's prior consent to merge w ith University 

National Bank, Rockville, Maryland, with total 

resources of $101,510,000. The m erger 

would be under the charter and with the title 

of A pplicant, and the fifteen existing, and one 

approved but unopened, branches of University National Bank would be established 

as branches of the resultant bank.

The proponents are both wholly-owned 

(except d ire cto rs’ qualifying shares) subsidiaries of Equitable Bancorporation, Baltimore, M aryland, a bank holding com pany. 

This relationship has existed since 1974. The 

proposal is essentially a corporate reorganization and would not affect the structure of 

com m ercial banking or the concentration of 

banking resources within the relevant market.

In view of the foregoing, the Board of 

Directors is of the opinion that the proposed 

m erger would not, in any section of the country, substantially lessen com petition, tend to 

create a m onopoly, or in any other m anner be 

in restraint of trade.

Financial and Managerial Resources; Future Prospects. The proponents’ financial 

and m anagerial resources are considered 

adequate for the purposes of this proposal. 

Financial and m anagerial resources of the 

resultant bank would be a cceptable and its 

future prospects appear favorable.

Convenience and Needs of the Community to be Served. Services to be offered in 

the relevant m arket by the resultant bank 

would not differ m aterially from those presently offered by each proponent.

A vailable inform ation indicates that no inconsistencies with the purposes of the Com ­

m unity Reinvestment A ct appear to exist.

On the basis of the foregoing inform ation, 

the Board of Directors has concluded that 

approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Bank of V icksburg

V icksburg, 

M ississippi 

(change title to The 

Am erican Bank)

38,316 3 6

to merge with

The Am erican Bank

Clinton, M ississippi

11,648 3

Sum mary report by Attorney General, 

O ctober 13, 1978

We have reviewed this proposed transaction and conclude that it would not have a 

substantial com petitive im pact.

Basis for C orporation Approval 

January 24, 1979

Bank of V icksburg, M ississippi (“ BV” ), an 

insured State nonm em ber bank with total 

resources of $38,316,000 and total IPC deposits of $23,081,000, has applied, pursuant 

to Section 18(c) and other provisions of the 

Federal Deposit Insurance Act, for the Corporation’s prior consent to m erge with The 

Am erican Bank, Clinton, M ississippi (“A m erican” ), with total resources of $11,648,000 

and total IPC deposits of $5,807,000. The 

banks would m erge under the charter of BV 

and with the title of The Am erican Bank, and 

incident to the merger, the three offices of 

Am erican would becom e branches of the 

resulting bank, increasing the num ber of a p ­

proved offices to seven.

Competition. BV, established in 1974, o p ­

erates three offices in Vicksburg, M ississippi. 

An additional branch has recently been approved for the city of Jackson, M ississippi, 

approxim ately 40 miles from its main office. 

As of D ecem ber 31, 1977, BV was ranked as 

the 63rd largest com m ercial bank in the

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

state, controlling a m odest 0.36 percent of 

the state’s com m ercial bank deposits.

Am erican, established in 1973, operates 

its main office and one branch in Clinton, 

M ississippi, and an additional branch in 

Jackson, M ississippi, seven miles east of the 

main office. As of D ecem ber 31, 1977, 

Am erican was ranked as the 147th largest 

com m ercial bank in the state, controlling a 

negligible 0.12 percent of the state’s com ­

m ercial bank deposits.

The proposed m erger would have its most 

im m ediate com petitive effect in A m erican’s 

prim ary m arket area, com posed of eastern 

Hinds County, western Rankin County, and 

the southern portion of M adison County. 

Jackson, the capital of M ississippi, is centrally located in this area. The 1970 population of the area was approxim ately 180,700 

(including 154,000 from the city of Jackson), 

com pared to a 1960 population of 161,000 

(including 144,400 from the city of Jackson). 

There are 88 offices of 14 com m ercial banks 

operating within this market. Am erican controls only 0.5 percent of the m arket’s com ­

m ercial bank IPC deposits, m aking it the 

fourth sm allest com m ercial bank. The state’s 

two largest banks dom inate the market with

80.4 percent of the com m ercial bank IPC 

deposits. BV is not located in the area and 

the closest existing branches of the two

banks are separated by approxim ately 40 

miles. It therefore appears that there is no 

significant existing com petition between the 

two banks that would be elim inated by the 

proposed m erger.

The proponents’ legal branching areas, 

under M ississippi banking laws, overlap to a 

great extent. BV has approval to open a 

branch in Jackson, approxim ately 3 miles 

from a branch of Am erican. The proposal will 

therefore elim inate future com petition between the proponents.

Considering the m odest share of the m arket held by Am erican and the com petition 

provided by the state’s two largest banking 

organizations, the elimination of this potential 

com petition is of little significance.

Based on the foregoing, the Board of Directors is of the opinion that the proposed 

m erger would not, in any section of the country, substantially lessen com petition, tend to 

create a m onopoly, or in any other manner be 

in restraint of trade.

Financial and Managerial Resources; Future Prospects. Considerations relating to 

financial and m anagerial resources have 

been satisfactorily resolved, and the resultant 

bank is anticipated to have favorable future 

prospects.

Convenience and Needs of the Community

to be Served. The proposed m erger would 

have little effect on the convenience and 

needs of the service area, other than providing the resulting bank with a higher lending 

limit. C onsiderations of convenience and 

needs of the com m unity are nevertheless 

consistent with approval of the application.

Available inform ation indicates that no inconsistencies with the purposes of the Com ­

munity Reinvestment Act appear to exist.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

The Hongkong Bank

of California

San Francisco, 

C alifornia

142,018 6 47

(change title to 

Central Bank)

to merge with

Central Bank

O akland, California

500,714 41

Sum mary report by Attorney General, 

N ovem ber 17, 1978

We have reviewed this proposed transaction and conclude that it would not have a 

substantial com petitive im pact.

Basis for Corporation Approval 

January 24, 1979

Pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, 

an application has been filed on behalf of The 

Hongkong Bank of California, San Francisco, 

California (“ H K B ” ), an insured State nonm e m b e r b a n k w ith to ta l re s o u rc e s of 

$ 142,018,000 and total IPC d e p osits of 

$106,122,000, for the C orporation’s prior 

consent to merge, under its charter, with 

Central Bank, Oakland, California, also an 

insured State nonm em ber bank, with total 

resources of $500,714,000 and total IPC deposits of $404,940,000, and to establish the

41 offices of Central Bank as branches of the 

resultant bank which would com m ence operation with a total of 47 offices and bear the 

title “ Central Bank” . Incident to the transaction, the main office location of the resultant 

bank w ould be changed to the present site of 

the main office of Central Bank.

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 71

Competition. The H ongkong and Shanghai 

Banking C orporation (“ H&S” ), parent of HKB, 

has proposed the acquisition of a major 

interest in Marine M idland Banks, Inc., a 

large New York State banking organization. 

As restraints bar H&S from holding the controllin g interest in both M arine M idland 

Banks, Inc., and HKB, ah attem pt has been 

m ade to sell, or otherwise dispose of, the 

offices and com m ercial banking business of 

the C alifornia-based bank.

HKB, based in San Francisco, operates six 

banking offices in California; two in the city of 

San Francisco, and one each in the cities of 

Sacramento, Beverly Hills, Carson and Los 

Angeles. Central Bank, based in Oakland, 

operates 41 offices in 12 counties of California with m ost of its offices located in the East 

Bay Region of the San Francisco-O akland 

m etropolitan area and in the central portion of 

the state in the Sacram ento and San Joaquin 

Valleys. A single office is also operated at 

Long Beach in the Los Angeles m etropolitan 

area.

There are three relevant m arkets in which 

to assess the com petitive im pact of the proposed transaction. The proponents’ closest 

offices are located in the Sacram ento area, 

approxim ately one mile apart, and are regarded as being in direct com petition in this 

relevant market. O ffices of the proponents in 

the San Francisco-O akland area and in the 

Los A ngeles-Long Beach area, while not in 

close proxim ity and separated by numerous 

intervening banking offices, are viewed as 

com peting in the same respective markets.

In each of these m arkets the proponents 

hold less than 1.0 percent of the respective 

m arket’s com m ercial bank deposit base and 

rank among the sm aller com m ercial banks by 

such a measure. All three markets are regarded as being highly concentrated, with 

the three largest banking organizations represented therein a g g re g a te ly c o n tro llin g 

between 64.5 percent and 78.0 percent of 

the respective m arket’s deposit base. In light 

of the relatively nominal volum e of deposits 

held by the proponents in these markets, the 

consum m ation of the proposed transaction is 

regarded as having no significant adverse 

effect upon existing com petition or upon the 

structure of com m ercial banking com petition 

in any of these relevant areas.

In the State of California, Central Bank 

ranks as the 13th largest bank in share of 

total com m ercial bank deposits held while 

HKB ranks as the 44th largest bank in share 

of such funds. The resultant bank, which 

would rank as the State’s 12th largest bank, 

would hold only 0.5 percent of C alifornia’s 

com m ercial bank deposits, a share significantly sm aller than those held by other, 

larger statew ide banking organizations. The 

proposed m erger of Central Bank and HKB is 

viewed as having little effect upon the structure of com m ercial banking or the concentration of banking resources in California.

C alifornia statutes perm it statew ide de

novo branching and m erger activity. H KB’s 

parent has indicated its intention to sell the 

bank, thus consideration of its potential expansion activities is not relevant to this 

analysis. Central B ank’s acquisition of H KB’s 

single banking office in Sacram ento and 

three offices in the Los Angeles area are 

viewed as having an insignificant effect on 

potential de novo entry due to the num ber of 

existing offices of other com m ercial banks 

and the concentrated nature of these banking markets. Central Bank, which currently 

has no offices in the city of San Francisco, 

must, however, be regarded as a potential de

novo branching entrant to that city. San Francisco, it is noted, is heavily banked, with a 

num ber of large, statew ide banking organizations based in the city and dom inating its 

com m ercial banking activities. The proposed 

transaction thus, would have little im pact on 

the potential for com petition between the 

proponents.

Under the circum stances, the Board of 

Directors is of the opinion that the proposed 

m erger would not, in any section of the country, substantially lessen com petition, tend to 

create a m onopoly, or in any other m anner 

be in restraint of trade.

Financial and Managerial Resources; Future Prospects. C onsiderations relating to the 

m anagerial resources of the proponents and 

of the resultant bank have been satisfactorily 

resolved. Equity capital of the resultant bank 

and of its parent, Central Banking System, 

Inc., on a consolidated basis, after giving 

consideration to the projected im pact of the 

proposed m erger, is below desired levels. It 

would appear that the capital structure of 

both the resultant bank and of its parent is in 

need of perm anent additional equity capital 

funds, in order to properly support the instant 

m erger proposal. With the addition of such 

additional equity funds, the resultant bank 

and its parent would appear to have favorable future prospects.

Convenience and Needs of the Community

to be Served. Services to be offered by the 

resultant bank would not differ m aterially from 

those presently available through either proponent or at other banking organizations. 

Considerations of convenience and needs of 

the com m unity are nevertheless consistent 

with approval of the transaction.

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

consistencies with the purposes of the Com ­

m unity Reinvestment Act appear to exist.

Based on the foregoing inform ation, the 

Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Barnett Bank of

Daytona Beach

Daytona Beach, 

Florida

(change title to 

Barnett Bank of 

Volusia County)

56,246 2 3

to merge with

Barnett Bank of

DeLand, National

A ssociation

DeLand, Florida

87,255 1

Sum mary report by Attorney General, 

O ctober 3, 1978

The m erging banks are both wholly-ow ned 

subsidiaries of the same bank holding com ­

pany. As such, their proposed m erger is 

essentially a corporate reorganization and 

would have no effect on com petition.

Basis for Corporation Approval 

January 24, 1979

Barnett Bank of Daytona Beach, Daytona 

Beach, Florida ("A p p lic a n t” ), an insured 

State nonm em ber bank with total resources 

of $56,246,000 and total IPC deposits of 

$43,593,000, has applied, pursuant to Section 18(c) and other provisions of the Federal 

D eposit Insurance Act, for the C orporation’s 

prior consent to m erge, under its charter, with 

Barnett Bank of DeLand, National A ssociation, DeLand, Florida (“ Other Bank” ), with 

total resources of $87,255,000 and total IPC 

deposits of $76,882,000, and to establish the 

sole office of Other Bank as a branch of the 

resultant bank which would com m ence operation with a total of three offices and with the 

title “ Barnett Bank of Volusia C ounty” . Incident to the transaction, the main office location of the resultant bank would be de sig ­

nated as the present site of the main office of 

Other Bank.

Competition. Essentially a corporate reorganization, the proposal would provide a 

means by which Barnett Banks of Florida,

Inc., Jacksonville, Florida, a registered bank 

holding com pany, may consolidate its operations in Volusia County. A pplicant and Other 

Bank have been under comm on ownership 

and control since A pplicant was established 

in January of 1971, and their proposed 

m erger would not affect the structure of 

com m ercial banking or the concentration of 

banking resources within the relevant market.

The Board of Directors is of the opinion that 

the transaction would not, in any section of 

the country, substantially lessen com petition, 

tend to create a m onopoly, or in any other 

m anner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. The proponents’ financial 

and m anagerial resources are considered 

adequate for the purposes of this proposal. 

Financial and m anagerial resources of the 

resultant bank would be satisfactory and its 

future prospects appear favorable.

Convenience and Needs of the Community

to be Served. Services to be offered in the 

relevant m arket by the resultant bank would 

not differ m aterially from those presently offered by each proponent.

Available inform ation indicates that no inconsistencies with the purposes of the Com ­

munity Reinvestment Act appear to exist.

On the basis of the foregoing inform ation, 

the Board of Directors has concluded that

approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Em igrant Savings

Bank

New York 

(Manhattan), New 

York

2,524,353 15 30

to merge with

Prudential Savings

Bank

New York 

(Manhattan), New 

York

751,045 15

Summary report by Attorney General, 

no report received.

Basis for C orporation Approval 

February 16, 1979

Pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, 

Em igrant Savings Bank, New York (P.O.

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 73

M anhattan), New York (“ Em igrant” ), an insured mutual savings bank with total resources of $2,524,353,000 and total deposits 

of $2,334,540,000, has applied for the Corporation’s prior consent to m erge, under its 

charter and title, with Prudential Savings 

Bank, New York (P.O. M anhattan), New York 

(“ Prudential” ), an insured mutual savings 

bank with total resources of $751,045,000 

and total deposits of $701,918,000. Incident 

to the transaction, the fifteen offices of Prudential w ould be established as branches of 

the resultant bank which would com m ence 

operation with a total of thirty offices.

Competition. Emigrant, based in Manhattan, operates a total of 15 offices in New York 

(M anhattan), Queens, Nassau and Suffolk 

Counties and has received regulatory app ro v a l to e s ta b lis h a b ra n c h o ffic e in 

W estchester County. Prudential, also based 

in Manhattan, operates 15 offices in New 

York (Manhattan), Kings (Brooklyn), Nassau 

and W estchester Counties. Each proponent 

has been involved in m erger transactions 

since 1969 with other thrift institutions based 

within New York City.

Neither Em igrant nor Prudential holds a 

significant share of the thrift institution deposit base in any of the counties in which the 

pro ponents are represented. In Nassau, 

W estchester and Kings Counties, the resultant institution would hold only 2.6 percent, 

0.4 percent and 1.7 percent, respectively, of 

the co unty’s thrift deposits, a market share 

which in each case is substantially lower than 

the share held by other large thrift institutions 

represented therein. In New York County 

(M anhattan), Em igrant is ranked as the third 

largest thrift institution holding 7.4 percent of 

that county's th rift institution deposits and as a 

consequence of the proposed m erger w ould 

acq u ire P rudential's 1.6 percent share of 

such fu n ds. This w o u ld have no effe ct upon 

the resultant in s titu tio n 's ranking and is not 

regarded as having any sig n ific a n t e ffect on 

the structure of th rift institution banking in this 

area. In the com bined four-county area of 

New York, Kings, W estchester and Nassau, 

in which Prudential is presently represented, 

the resultant bank would aggregately hold 

only 5.1 percent of the area’s thrift institution 

deposits, a share significantly smaller than 

the shares held by the three larger mutual 

savings banks based therein.

The five borroughs of New York City and 

the n e ig h b o rin g c o u n tie s of R o ckla n d, 

W estchester, Suffolk and Nassau are regarded as having close econom ic ties, with a 

large portion of the work force em ployed with 

New York City. The presence of comm on 

a d v e rtis in g and c o m m u n ic a tio n m e d ia

throughout the m etropolitan area serves as 

additional evidence of econom ic integration. 

The resultant institution in this m etropolitan 

area, similarly, would control less than 5.0 

percent of the thrift institution deposits and 

the proposed transaction is viewed as having 

no significant effect upon the structure of 

thrift institution banking in such an area.

While some existing com petition between 

Em igrant and Prudential would be elim inated 

by the consum m ation of the proposed transaction, no significant adverse effect on com ­

petition is in evidence as numerous other 

large thrift institution alternatives are available in each of the areas served by the 

proponents. In the New York, Kings, Nassau 

and W estchester C ounty area, over 500 

banking offices are operated by a total of 110 

thrift institutions, of which the resultant bank 

would operate only 23. The continuation of a 

com petitive thrift institution banking environment seems assured.

Em igrant ranks as the fifth largest and 

Prudential as the 39th largest mutual savings 

bank in New York State. While each is perm itted to branch and m erge throughout the 

state, and thus, some potential for increased 

com petition in the future between them would 

be elim inated by the proposed transaction, 

New York statutes restrict de novo branch 

expansion by mutual savings banks to one 

such office per year. This statutory branching 

restraint and the presence of numerous other 

large thrift institutions make this loss of potential com petition insignificant.

Under the circum stances, the Board of 

D irectors is of the opinion that the proposed 

m erger would not, in any section of the country, substantially lessen com petition, tend to 

create a m onopoly, or in any other manner be 

in restraint of trade.

Financial and Managerial Resources; Future Prospects. Prudential’s financial co n d ition is regarded as less than desirable as a 

result of low capitalization, a high volum e of 

nonearning assets, poor earnings retention 

and inadequate loan supervision, while the 

financial condition of Em igrant has proven to 

be sound and generally free of such criticism. The resultant institution should have the 

resources to correct such deficiencies within 

the fram ew ork of a financially sound thrift 

institution. Considerations relating to m anagerial resources and the future prospects of 

the resultant institution have been satisfactorily resolved. These considerations would 

outweigh such limited adverse com petitive 

effects as may exist.

Convenience and Needs of the Community

to be Served. Some benefit would accrue to 

the public from the proposed broadening of

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74 FEDERAL DEPOSIT INSURANCE CORPORATION

depository services offered and expanded 

banking hours at the present offices of Prudential, however, the proposed transaction is 

expected to have little material im pact upon 

convenience and needs as such services are 

readily available at offices of other thrift institutions in the areas served by the proponents. Considerations relating to convenience and needs of the com m unity to be 

served are, however, consistent with approval of the transaction.

Available inform ation indicates that no inconsistencies with the purposes of the Com ­

m unity Reinvestment A ct appear to exist.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

First Trust and

Deposit Com pany

Syracuse, New York

509,811 44 46

to merge with

Genesee Valley

National Bank and

Trust Company of

Geneseo

Geneseo, New York

27,214 2

Summary report by Attorney General, 

O ctober 20, 1978

We have reviewed this proposed transaction and conclude that it would not have a 

significantly adverse effect upon com petition.

Basis for C orporation Approval 

February 16, 1979

First Trust and Deposit Com pany, Syracuse, New York (“ First Trust” ), an insured 

State nonm em ber bank with total resources 

of $509,811,000 and total IPC deposits of 

$390,453,000, has applied, pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the C orporation’s 

prior consent to merge, under its charter and 

title, with Genesee Valley National Bank and 

Trust C om pany of Geneseo, Geneseo, New 

York (“ Genesee Valley” ), with total resources 

of $27,214,000 and total IPC deposits of 

$19,618,000. Genesee Valley’s two offices 

would be operated as branches of the resultant bank.

Competition. The banking m arket most relevant to an evaluation of the com petitive 

im pact of the proposed transaction would be 

an area within fifteen road miles of Geneseo, 

w h ic h w o u ld in c lu d e th e m a jo rity of 

Livingston County, and the adjoining portions 

of Genesee and W yoming Counties. M uch of 

the area is rural with both agricultural and 

industrial activities in evidence. The town of 

G eneseo (1970 population 7,278) serves as 

the econom ic center of the area by virtue of 

its size relative to the surrounding com ­

m unities and the presence of a branch of the 

state university. The area, with the exception 

of the town of Geneseo, has experienced 

only a m odest population growth, and its 

m edian buying levels are below the 1977 

state median.

In the relevant market, a total of nine com ­

m e rcia l b a n ks o p e ra te sixte e n o ffic e s . 

G enesee Valley, which ranks as the m arket’s 

third largest bank, holds 14.5 percent of its 

IPC d e p o s it base, a share sig n ific a n tly 

sm aller than those held by the m arket’s two 

larger institutions which aggregately control 

48.6 percent of such funds. Neither First 

Trust nor any affiliate of its parent, First 

Com m ercial Banks, Inc., is represented in 

this market, and Genesee Valley does not 

appear to be engaged in any significant 

direct com petition with this banking organization. The proponents’ nearest offices are 

located approxim ately 65 miles apart and no 

office of an affiliate is located closer. The 

proposed transaction is viewed as having no 

significant effect on existing com petition. 

Represented in the relevant m arket are affiliates of several of the state’s largest banking organizations providing intense com petition. Thus, the acquisition of this relatively 

small local institution by a banking organization based in the central and eastern portions 

of the state would have no material adverse 

im pact on the structure of com m ercial banking in the relevant market.

New York State statutes perm it statewide 

de novo branching, subject to home office 

protection in com m unities with a population 

of 50,000 or less. First Trust is thus precluded 

from de novo expansion into Geneseo, and 

the proposed transaction will serve as an 

entry m echanism perm itting First Trust to 

establish a presence in this local market. 

G enesee Valley, due to its relatively m odest 

size, does not appear to be in a position to 

m ount any m eaningful expansion cam paign 

into areas rem oved from its present base of 

operation. A ccordingly, the proposed transaction w ould not elim inate any significant 

potential for com petition between the proponents.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 75

Based upon the foregoing, the Board of 

Directors is of the opinion that the proposed 

transaction would not, in any section of the 

country, substantially lessen com petition, 

tend to create a m onopoly, or in any other 

m anner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Both banks have satisfactory 

financial and m anagerial resources, as would 

the resultant bank which is anticipated to 

have favorable future prospects.

Convenience and Needs of the Community

to be Served. Services to be offered by the 

resultant bank would not differ m aterially from 

those already available in the m arket at other 

banking organizations. As consum m ation of 

the proposed transaction will make available 

an additional source of such services in the 

com m unity, considerations of convenience 

and needs appear consistent with approval 

of the application.

Available inform ation indicates that no inconsistencies with the purposes of the Com ­

m unity Reinvestment Act appear to exist.

On the basis of the foregoing information, 

the Board of Directors has concluded that 

approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Albany Savings Bank

Albany, New York

917,365 14 21

to merge with

Heritage Savings

Bank

Kingston, New York

243,189 7

Sum mary report by Attorney General, 

February 26, 1979

We have reviewed this proposed transaction and conclude that it would not have any 

significant effect on com petition.

Basis for C orporation Approval 

M arch 20, 1979

A lbany Savings Bank, Albany, New York, 

an insured mutual savings bank with total 

resources of $917,365,000 and total deposits 

of $851,439,000, has applied, pursuant to 

Section 18(c) and other provisions of the 

Federal D eposit Insurance Act, for the Corporation’s prior consent to merge, under its 

charter and title, with H eritage Savings Bank, 

Kingston, New York, an insured mutual savin g s b a n k w ith to ta l re s o u rc e s of

$ 2 4 3 ,1 8 9 ,0 0 0 and to ta l d e p o s its of 

$228,965,000. Incident to the transaction, the 

seven offices of H eritage S avings Bank 

would be established as branches of Albany 

Savings Bank which would com m ence operation with a total of 21 offices.

Competition. A lbany Savings Bank operates 14 offices in the central and northern 

portions of New York State. Branches in 

Glens Falls, Johnstown, Troy and Oneida 

have been acquired since 1970 through 

m erger transactions with four State-chartered 

savings and loan associations. H eritage 

Savings Bank operates a total of seven offices in three counties of the Hudson River 

Valley of southeastern New York State. In 

1974, H eritage S avings Bank, based in 

Kingston in northern Ulster County, m erged 

w ith B e a co n S a v in g s B ank, a c q u irin g 

branches in the southern portion of Dutchess 

C ounty and reso u rce s of a p p ro x im a te ly 

$58,000,000. The proponents’ nearest offices 

are in excess of 50 road miles apart, with a 

num ber of other thrift institution offices serving the intervening area. The two institutions 

do not appear to be in direct com petition to 

any significant degree and the proposed 

transaction is regarded as having little effect 

upon existing com petition.

The area in which the com petitive im pact of 

the proposed transaction would be most d irect and im m ediate is regarded as the area 

within an approxim ate 15 road mile radius of 

the respective cities of Kingston and Beacon. 

These two, essentially adjoining relevant 

markets, overlap only to a limited extent in the 

vicinity of Poughkeepsie where a locallybased mutual savings bank dom inates the 

local thrift institution banking.

Kingston (1970 population 25,544) is the 

Ulster County seat, located in the northeastern portion of the county approxim ately 90 

road miles north of New York City and a p ­

proxim ately 60 road miles south of Albany. 

The econom y of the Kingston area is p re d icated upon a mix of light industry, agricu lture, dairy farm ing and tourism . The m ountains and forests that lie to the west of K ingston serve as a popular recreational area. The 

cities of Beacon and Poughkeepsie (1970 

population 13,255 and 32,029, respectively) 

are chief econom ic centers of D utchess 

C ounty, w ith P o u g h ke e psie lo ca te d a p ­

proxim ately equidistant between New York 

City and Albany. The area’s econom jc activity is well diversified with electronics, apparel, food processing, textiles, paper p ro d ­

ucts and other m anufacturing of significance. 

A large IBM com plex near Poughkeepsie is 

the area’s largest em ployer with its highly 

skilled workers contributing to the relatively 

high m edian househ o ld buying level of

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76 FEDERAL DEPOSIT INSURANCE CORPORATION

Dutchess County in relation to com parable 

figures for adjoining areas and for the state.

In the Kingston relevant market, a total of 

nine thrift institutions operate 16 banking 

offices. Heritage Savings Bank, w hich holds

20.4 percent of the m arket’s thrift institution 

deposits, ranks as its second largest thrift 

institution. In the Beacon relevant m arket, a 

total of 14 thrift institutions operate 37 banking offices. Heritage Savings Bank, which 

holds 7.7 percent of the thrift institution d e ­

posits in this market, ranks as the fourth 

largest thrift institution. Albany Savings Bank 

is not represented in either of these markets.

Heritage Savings B ank’s Spring Valley office is located in Rockland County, more than 

70 road miles south of Kingston, and is regarded as com peting in a separate, distant 

local market. This office, which holds a m odest 4.4 percent of Rockland C ounty’s thrift 

institution deposits, ranks among the area’s 

sm aller th rift in stitu tio n s. The p ro p o s e d 

transaction w ould have little effect upon 

com petition or upon the structure of thrift 

institution banking in this relatively distant 

area.

The prospects of m eaningful com petition 

developing between the proponents through 

de novo branching in the foreseeable future 

appear rem ote as restrictive state statutes 

limit such expansion for each proponent to a 

single de novo office per year. H eritage Savings Bank lacks the necessary resources to 

mount a m eaningful expansion effort out of 

the Hudson River Valley area it now serves 

into areas served by Albany Savings Bank. 

While A lbany Savings Bank must be regarded as a prim e potential entrant into the 

markets in the Hudson River Valley now 

served by H eritage Savings Bank, the vehicle 

of de novo branch entry is not expected to 

produce a significant com petitive im pact in 

the foreseeable future. The presence of a 

num ber of large thrift institutions, with num erous banking offices in the Kingston and Beacon m arkets, assures the continuation of a 

com petitive thrift institution banking clim ate 

in these areas if the proposed m erger is 

consum m ated. The loss of some potential for 

future com petition between the proponents is 

not regarded as having a significant adverse 

com petitive im pact.

Under the circum stances, the Board of 

Directors has concluded that the proposed 

transaction w ould not, in any section of the 

country, substantially lessen com petition, 

tend to create a m onopoly, or in any other 

m anner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. H eritage Savings Bank’s financial condition is regarded as less than

desirable as a result of a high volum e of loan 

losses and nonearning assets with a poor 

record of earnings retention while the financial condition of A lbany Savings Bank has 

proven to be generally free of such criticism . 

The resultant institution should possess the 

resources necessary to correct such deficiencies within the fram ew ork of a financially 

sound thrift institution.

Considerations relating to m anagerial resources and future prospects of the resultant 

institution have been satisfactorily resolved.

Convenience and Needs of the Community

to be Served. The proposed transaction 

w ould resolve the financial and m anagerial 

deficiencies in evidence at Heritage Savings 

Bank and thus enhance the convenience and 

needs of the com m unities it serves. These 

considerations would outw eigh such limited 

adverse com petitive effects as may exist.

A review of available inform ation, including 

the Com m unity Reinvestment A ct Statem ent 

of the two respective institutions and other 

relevant material, disclosed no inconsistencies with the purposes of the Act. The resultant institution is expected to continue to 

meet the credit needs of its entire com m unity, 

consistent with the safe and sound operation 

of the institution.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Heritage Bank, N.A.

— Steubenville

Steubenville, Ohio

129,735 8 19

(change title to 

Heritage Bank)

to consolidate with

Heritage Bank, N.A.

— Salem

Salem, Ohio

75,000 8

and

Heritage Bank, N.A.

— Hopedale

Hopedale, Ohio

14,010 3

Sum mary report by Attorney General, 

January 5, 1979

The consolidating banks are all whollyowned subsidiaries of the same bank holding

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 77

com pany. As such, their proposed consolidation is essentially a corporate reorganization and would have no effect on com petition.

Basis for Corporation A pproval 

April 2, 1979

H e rita g e B ank, N.A. — S te u b e n v ille , 

Steubenville, Ohio (“ S teubenville” ), with total 

assets of $129,735,000 and total IPC deposits of $105,971,000, has applied, pursuant to Section 18(c) and other provisions of 

the Federal D eposit Insurance Act, for consent to consolidate with H eritage Bank, N.A.

— Salem, Salem, Ohio (“ Salem ” ), with total 

assets of $75,000,000 and total IPC deposits 

of $64,217,000, and with Heritage Bank, N.A.

— Hopedale, H opedale, Ohio (“ H o pedale” ), 

with total assets of $14,010,000 and total IPC 

deposits of $11,453,000, under a new state 

charter, with the title, “ Heritage B ank,” and to 

establish the eight offices of Salem and the 

three offices of H opedale as branches of the 

resulting bank. Incident to the transaction, 

the Toronto O ffice of Steubenville will be 

redesignated as the main office of the resulting bank which would operate with a total of 

19 offices.

Competition. Essentially a corporate reorganization, the proposal would provide a 

means by which First Steuben Bancorp, Inc., 

Toronto, Ohio, a registered bank holding 

com pany, may consolidate its operations in 

Harrison, C olum biana, and Jefferson C ounties, Ohio. The proponents have been under 

com m on control since 1975, and their pro ­

posed consolidation w ould not affect the 

structure of com m ercial banking or the concentration of banking resources within the 

relevant market.

The Board of D irectors is of the opinion that 

the transaction w ould not, in any section of 

the country, substantially lessen com petition, 

tend to create a m onopoly or in any other 

manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. P roponents’ financial and 

m a n a g e ria l re s o u rc e s are c o n s id e re d 

adequate for purposes of this proposal. Financial and m anagerial resources of the resultant bank would be satisfactory and its 

future prospects appear favorable.

Convenience and Needs of the Community

to be Served. Services to be offered in the 

relevant m arket by the resulting bank would 

not differ m aterially from those presently offered by each proponent.

A review of available inform ation disclosed 

no inconsistencies with the purposes of the 

Com m unity Reinvestment Act. The resultant 

institution is expected to continue to m eet the 

credit needs of its entire com m unity, consistent with the safe and sound operation of the 

institution.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is w arranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Maine Savings Bank

Portland, Maine

406,418 12 14

to merge with

South Paris Savings

Bank

South Paris, Maine

10,211 2

Summary report by Attorney General, 

O ctober 3, 1978

We have reviewed this proposed transaction and conclude that it would not have a 

significantly adverse effect upon com petition.

Basis for C orporation Approval 

April 2, 1979

M aine S avings Bank, P ortland, M aine 

(“ A p p lica n t” ), an insured m utual savings 

bank with total resources of $406,418,000 

and total d eposits of $364,980,000, has 

applied, pursuant to Section 18(c) and other 

provisions of the Federal D eposit Insurance 

Act, for the C orporation’s prior consent to 

m erge, under its charter and title, with South 

Paris S avings Bank, South Paris, M aine 

(“ SPSB” ), an insured mutual savings bank 

with total resources of $10,211,000 and total 

deposits of $9,363,000. Incident to the transaction, the two offices of SPSB w ould be 

established as branches of A pplicant. In a 

com panion proposal, A pplicant also seeks 

the C orporation’s consent to establish a de

novo branch in the O xford Plains Shopping 

Center, O xford, Maine, which is in close 

proxim ity to the two existing offices of SPSB.

Competition. A pplicant, based in Portland, 

operates 12 offices in four counties of central 

and southern Maine, and has received appropriate regulatory approval to establish a 

de novo branch in Bangor approxim ately 135 

miles northeast of Portland. W hile the m ajority 

of A p p lica n t’s offices are centered in the 

u rbanized areas of coastal C um berland 

County, all but one of the branches opened 

since 1974 have been established in more 

distant m arkets. SPSB, headquartered in

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78 FEDERAL DEPOSIT INSURANCE CORPORATION

South Paris, operates a single branch located in South Paris Village, approxim ately 2 

road miles west of its main office and 2 road 

miles east of A p p lica n t’s proposed O xford 

branch.

The relevant m arket in which to assess the 

com petitive im pact of the proposed transaction is regarded as the area within an a p ­

proxim ate 15 road-m ile radius of South Paris, 

encom passing southeastern O xford County 

and small portions of adjoining A n d ro scog ­

gin and C um berland Counties. This area, 

containing a stable population base estim ated at a p p ro xim a te ly 15,000, has an 

econom y p redicated upon dairy farm ing, 

light m anufacturing, lum ber and wood p ro d ­

ucts. Recent growth has been most pro ­

nounced in the nearby town of Oxford.

In the relevant market, a total of three thrift 

institutions operate five offices. SPSB, which 

holds a 22.8 percent m arket share of the 

deposits held by such institutions, is significantly sm aller than Norway Savings Bank, 

which dom inates the local market, holding

72.4 percent of the thrift institution deposits. 

Bethel Savings Bank, based in Bethel a p ­

proxim ately 25 road miles north of South 

Paris, has opened two offices in this m arket 

since 1975. To date, those branches have 

been unable to m ake a significant penetration in dollar volum e of deposits. As A p p lic ­

ant is not represented in this market and the 

proponents’ nearest offices are located a p ­

proxim ately 30 road miles apart, direct com ­

petition between the two institutions appears 

to be minimal. The proposed transaction 

would have no significant effect on existing 

com petition between the two institutions or 

upon the structure of th rift institutio n banking 

in the relevant market.

A pplicant is M aine’s largest mutual savings bank holding 17.1 percent of the state’s 

total mutual savings bank deposits, a share 

significantly higher than the state’s second 

and third largest such institutions. Its acquisition of SPSB, which holds a m odest 0.4 

percent of such funds in the state, would add 

to this concentration; however, such an a d d ition is not regarded as having a significant 

com petitive im pact.

M aine sta tu te s p ro v id e fo r s ta te w id e 

branching activity. SPSB has historically 

chosen to serve its local com m unity, and as 

one of the state’s sm aller mutual savings 

banks, does not possess the resources to 

em bark upon any m eaningful expansion into 

new markets. A pplicant, on the other hand, 

with a record of aggressive branch d evelopment, m ust be regarded as a potential de

novo entrant to the South Paris-Norway m arket.

The com panion proposal of A p plicant to 

establish a de novo branch in a new shopping center in the adjoining town of O xford is 

regarded as an integral part of this transaction. The unim pressive grow th record of 

another thrift institution’s recent de novo

entry into the South Paris-N orway m arket 

adds some support to A pplicant's contention 

that de novo entry to this relatively stable 

local m arket would not be econom ically attractive. W hile it would be preferable, from a 

com petitive standpoint, to have both A p p licant and SPSB represented in this local m arket, in the absence of the proposed transaction, A p plicant is unlikely to expand into this 

area in the foreseeable future. In such a light, 

the loss of the potential for future com petition 

to develop between the proponents is not 

regarded as having any significant adverse 

com petitive consequence.

The Board of Directors is of the opinion that 

the proposed m erger would not, in any section of the country, substantially lessen com ­

petition, tend to create a m onopoly or in any 

other m anner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. The financial and m anagerial 

resources of both proponents are regarded 

as satisfactory and the resultant institution is 

anticipated to have favorable future prospects.

Convenience and Needs of the Community

to be Served. The present rate structures and 

fee schedules on deposit and loan accounts 

at SPSB, are more favorable to thrift custom ­

ers than those which w ould be offered by 

A p p lic a n t and the re s u lta n t in s titu tio n . 

A pplicant does, however, offer a broader 

range of thrift institution services than are 

presently available at SPSB, including a full 

range of time and personal checking deposit 

accounts, higher lending limits, and expanded m ortgage loan activities. On balance, considerations relating to the convenience and needs of the com m unity appear 

consistent with approval of the application.

A review of available inform ation, including 

the C om m unity Reinvestm ent A ct Statem ents 

of the two respective institutions and other 

relevant material, disclosed no inconsistencies with the purposes of the Act. The resultant institution is expected to continue to 

meet the credit needs of its entire comm unity, 

consistent with the safe and sound operation 

of the institution.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 79

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Northern Central

Bank

W illiamsport,

Pennsylvania

278,621 17 19

to merge with

The First National

Bank of M illville

Millville,

Pennsylvania

16,892 2

Sum mary report by A ttorney General, 

January 15, 1979

Overall, in our view, the proposed tran sa ction would not have a significantly adverse 

com petitive effect.

Basis for C orporation Approval 

April 2, 1979

N o rth e rn C e n tra l B ank, W illia m s p o rt, 

Pennsylvania (“ N orthern” ), an insured State 

nonm em ber bank with total resources of 

$278,621,000 and total IPC d e p osits of 

$220,863,000, has applied, pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the C orporation’s 

prior consent to m erge with The First National 

B ank of M illville , M illville , P ennsylvania 

(“ M illv ille ” ), w ith to ta l re s o u rc e s of 

$1 6 ,8 9 2 ,0 0 0 and to ta l IPC d e p o s its of 

$14,393,000. These banks w ould m erge 

under the charter and title of Northern and 

the two offices of M illville would be established as branches of the resultant bank, 

which w ould com m ence operation with a total 

of 19 offices.

Competition. Northern operates 17 offices: 

six, including its main office in Lycom ing 

County; one in Bradford County; eight in 

Northum berland County; and two in Sullivan 

County. M illville’s main office is located in 

Colum bia County and it operates one branch, 

approxim ately 14 miles from its main office, in 

Lycom ing County. The main offices of the two 

banks are approxim ately 34 road miles apart 

but their nearest offices, the Lycom ing Mall 

Branch of N orthern and the C larkstow n 

Branch of Millville, are separated by only 7 

road miles.

The tw o offices of M illville operate in 

separate markets. The Clarkstown office is 

approxim ately 15 miles from W illiam sport 

and its m arket includes areas located within 

10 to 12 miles of Clarkstown, as well as the 

city of W illiam sport. Northern has five offices 

located within this m arket and is the dom inant bank holding 31.2 percent of the IPC 

deposits. In spite of this, the effect on com ­

petition in this m arket w ould be negligible 

since the Clarkstown office of Millville (established in 1975) has less than $700,000 in total 

IPC deposits.

The com petitive im pact of the proposal 

would be m ost im m ediate and direct in the 

area served by the main office of Millville. 

This m arket area extends approxim ately 10 

to 12 road miles from the borough of Millville. 

While the area is largely agricultural, the 

industrialized town of Bloom sburg is located 

on the perim eter of the market. The 1970 

population of the area was 36,598 and the 

town of Bloom sburg accounted for 11,652 of 

the total. There are 20 offices of eight com ­

mercial banks serving the area. Northern is 

not represented in the market, and Millville 

has the sm allest share of IPC deposits in the 

area (6.0 percent). There does not appear to 

be any existing com petition between the 

proponents within this market. Because of 

the limited population of the Millville m arket it 

is unlikely that any substantial com petition 

will develop between the two institutions.

Under Pennsylvania banking law, b ranching is perm itted in a bank’s home county and 

all contiguous counties. Within the 10-county 

region in w hich Northern may expand, a total 

of 52 com m ercial banks operate 164 offices 

and h o ld d e p o s its a g g re g a tin g 

$1,936,000,000. While Northern holds the 

largest share of deposits in the area (12.2 

percent), the deposit structure is relatively 

unconcentrated, with the 10 largest banks 

controlling slightly over 50 percent of the 

com m ercial bank deposits. This proposal 

would increase N orthern’s share to 13 percent. It does not appear that the proposal 

would have any significant adverse effect on 

the concentration of banking resources or the 

structure of com m ercial banking in this relevant area.

Under these circum stances, the Board of 

Directors is of the opinion that the proposed 

m erger would not, in any section of the country, substantially lessen com petition, tend to 

create a m onopoly, or in any other m anner be 

in restraint of trade.

Financial and Managerial Resources; Future Prospects. Both Northern and Millville 

have satisfactory financial and m anagerial 

resources, and their future prospects are 

favorable. The resultant bank should also 

have satisfactory financial and m anagerial 

resources and favorable future prospects.

Convenience and Needs of the Community

to be Served. The resultant bank will offer a 

greater variety of deposit services, trust services, and more sophisticated lending serDigitized for FRASER 

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80 FEDERAL DEPOSIT INSURANCE CORPORATION

vices than are presently being offered by 

Millville. While other banking offices located 

in the trade area also provide these services, 

none of these banking offices are in the 

im m ediate M illville area. The resultant bank 

will therefore be able to provide more convenient services to the local area and also be 

better able to com pete with branches of 

larger banks in the surrounding area.

A review of available inform ation, including 

the C om m unity Reinvestm ent A ct Statem ents 

of the two respective institutions and other 

relevant material, disclosed no inconsistencies with the purposes of the Act. The resultant institution is expected to continue to 

m eet the credit needs of its entire com m unity, 

consistent with the safe and sound operation 

of the institution.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Central Counties

Bank

State College, 

Pennsylvania

310,794 25 26

to merge with

The Union National

Bank of Lewisburg

Lewisburg,

Pennsylvania

18,000 1

Sum mary report by Attorney General,

January 19, 1979

We have reviewed this proposed transaction and conclude that it would not have a 

substantial com petitive im pact.

Basis for C orporation Approval 

April 9, 1979

C entral C ounties Bank, State C ollege, 

Pennsylvania (“ Central C ounties” ), an insured State nonm em ber bank with total resources of $310,794,000 and total IPC deposits of $259,637,000, has applied, pursuant to Section 18(c) and other provisions of 

the Federal Deposit Insurance Act, for the 

C orporation’s prior consent to m erge, under 

its charter and title, with The Union National

Bank of Lewisburg, Lewisburg, Pennsylvania 

(“ Union National” ), with total resources of 

$ 1 8 ,0 0 0 ,0 0 0 and total IPC d e p o s its of 

$15,876,000. Incident to the merger, the sole 

office of Union National would becom e a 

branch of the resultant bank, increasing the 

num ber of its authorized offices to 26.

Competition. Central Counties operates 25 

offices: its main office and six branches in 

Centre County, ten branches in Blair County, 

four branches in Clinton County and four 

branches in Mifflin County. Union National 

operates its sole office in Lewisburg, Union 

County, which is situated im m ediately east of 

Centre County.

The effects of the proposed m erger would 

be most pronounced in Union N ational’s 

m arket, w hich consists of eastern Union 

County and the adjoining portions of Northum berland County within about 12 road 

miles of Lewisburg. The area is largely forest 

land with additional land devoted to a g riculture. Light industry, a Federal penitentiary, 

and Bucknell University, with an enrollm ent of 

a p p ro x im a te ly 3 ,3 0 0 , a ffo rd a d d itio n a l 

em ploym ent for the area residents. The effective buying incom e of Union County in 

1977 was 8.5 percent below that of the state.

Union National is one of twelve banks 

opeating a total of 21 offices in this relevant 

m arket and holds the ninth largest share, 6.8 

percent, of the IPC deposits held by area 

offices of these banks. Consum m ation of the 

proposed m erger would have little effect 

upon the structure of com m ercial banking in 

the relevant market, as Central Counties is 

not now represented there.

Although Union County and Centre County 

are contiguous, there is no overlapping of 

service areas as they are separated by a 

portion of the A ppalachian Range and by 

state forest lands. The closest office of Central Counties to Union N ational’s sole office is 

some 34 miles in distance. The proposed 

transaction would have no significant effect 

on existing com petition between the two institutions.

Pennsylvania law perm its a com m ercial 

bank to branch de novo or m erge within its 

home office county and all contiguous counties. Central Counties can thus enter Union 

County de novo, and Union National may 

sim ilarly enter Centre County. Union National 

has historically confined its operation to a 

local m arket and does not possess the resources necessary to expand into more distant markets. Union County, with a stable 

population base and a large num ber of established com m ercial banks, would appear 

to hold only limited attraction for de novo

entry by Central Counties. The county would

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continue to enjoy a com petitive banking climate subsequent to consum m ation of the 

proposed transaction, and the loss of some 

potential for the developm ent of future com ­

petition between the proponents is not regarded as having any significant com petitive 

im pact.

Central Counties is the second largest of 

the 41 com m ercial banks represented in its 

legal branching area with 15.0 percent of the 

area’s deposits held by such banks. The 

proposed m erger would increase to 15.9 

percent Central C ounties’ deposit share in 

this area. Similarly, the acquisition of Union 

National would not m aterially affect Central 

C ounties’ share of the state’s com m ercial 

bank deposits which would remain at less 

than one percent.

Based on the foregoing, the Board of Directors is of the opinion that the proposed 

m erger would not, in any section of the country, substantially lessen com petition, tend to 

create a m onopoly, or in any other manner be 

in restraint of trade.

Financial and Managerial Resources; Future Prospects. Both banks have satisfactory 

financial and m anagerial resources, as would 

the resultant bank which is anticipated to 

have favorable future prospects.

Convenience and Needs of the Community

to be Served. The proposed m erger would 

bring into the Lewisburg market, the services 

of another of the region’s m ajor banks. The 

resultant bank would offer a greater variety of 

deposit and loan services; more intensive

m arketing of consum er lending, including 

dealer financing; and a significantly larger 

legal lending limit. C onsiderations relating to 

convenience and needs of the com m unity 

appear consistent with approval of the a pplication.

A review of available inform ation disclosed 

no inconsistencies with the purposes of the 

Com m unity Reinvestment Act. The resultant 

bank is expected to continue to meet the 

credit needs of its entire com m unity, consistent with the safe and sound operation of the 

bank.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Bankers Trust of

South Carolina

Columbia, South 

Carolina

684,765 89 97

to merge with

The Peoples Bank of

South Carolina,

Inc.

Florence, South 

Carolina

40,744 8

Summary report by Attorney General, 

February 9, 1979

We have reviewed the proposal, and concluded that it is perm issible.

Basis for C orporation A pproval 

April 23, 1979

Bankers Trust of South Carolina, Colum bia, 

South Carolina (“ Bankers Trust” ), an insured 

State nonm em ber bank with total resources 

of $684,765,000 and total I PC deposits of 

$497,656,000, has applied, pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the C orporation’s 

prior consent to m erge, under its charter and 

title , w ith The P e o p le s B ank of S outh 

C arolina, Inc., F lorence, South C arolina 

(“ Peoples Bank” ), with total resources of 

$ 4 0 ,7 4 4 ,0 0 0 and to ta l IPC d e p o s its of 

$34,235,000. Incident to the transaction, the 

eight offices of Peoples Bank would be established as branches of the resultant bank.

Competition. Bankers Trust, based in Columbia, operates 89 full-service offices in 18 

counties of central and southw estern South 

Carolina. It has been a party to 16 m erger 

transactions with com m ercial banks since 

1955 and has p u rs u e d an a g g re s s iv e 

branching policy. A w holly-ow ned m ortgage 

subsidiary, Aiken-Speir, Inc., is headquartered in C olum bia with its service headquarters located in Florence. Business offices of 

this subsidiary, which service a m ortgage 

loan portfolio of approxim ately $381,000,000 

(D ecem ber 31, 1978), are m aintained in 

Charleston, Colum bia, Florence and G reenville, South Carolina, and Charlotte, North 

Carolina.

Peoples Bank was organized in 1965 and 

operates a total of eight offices in four counties of northeastern South Carolina. The 

p rim ary service areas of Peoples Bank, 

which are regarded as the relevant m arkets 

in which to assess the com petitive im pact of

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the proposed transaction, are delineated as 

follow s: (1) the Florence market, approxim ated by a 15 road-m ile radius of the city of 

Florence, in which three offices are operated; 

(2) the Sumter market, approxim ated by a 15 

road-m ile radius of the city of Sumter, in 

w hich one office is operated; and, (3) the 

Myrtle Beach market, consisting of a narrow 

band of ocean front com m unities in Horry 

County, in which three offices are operated.

In the Florence, Sumter and Myrtle Beach 

relevant markets, Peoples Bank holds 10.4 

percent, 2.9 percent and 7.7 percent of the 

respective m arkets’ IPC deposit base. In the 

Sumter and Myrtle Beach markets, Peoples 

Bank is the sm allest com m ercial bank represented, while it ranks as the fifth largest of 

eight com m ercial banks in the Florence m arket where it is headquartered. In each of 

these markets, the state’s two largest com ­

m ercial banks hold m arket shares significantly larger than those held by Peoples 

Bank, whose acquisition by Bankers Trust is 

viewed as having no material adverse effect 

upon the structure of com m ercial banking in 

these relevant markets.

Peoples Bank’s Lynchburg office, located 

in the southern portion of rural Lee County, 

approxim ately 20 miles southw est of Florence, is regarded as serving a small local 

com m unity as it is the only com m ercial 

banking office for a distance of more than 10 

road miles. In light of the m odest volum e of 

deposits held by this office, the proposed 

transaction w ould have little effect upon 

com petition or banking structure in this relatively localized, rural area.

The proponents are not currently engaged 

in any material direct com petition as their 

closest offices are located more than 40 road 

m iles apart in co n tig u o u s R ichland and 

Sumter Counties. The m erger of Bankers 

Trust and Peoples Bank is thus regarded as 

having no s ig n ific a n t a d verse e ffe ct on 

existing com petition.

As South Carolina statutes permit statewide 

de novo branching and m erger activity, su b ­

ject to certain m inim um capitalization requirem ents, each proponent has the potential to branch into the areas now served by 

the other. Peoples Bank, however, has failed 

to capture a significant share of deposits in 

any new m arket it has entered and has not 

established a de novo branch since June,

1974. Bankers Trust, which possesses the 

resources and e xperience necessary for 

statewide branching, has concentrated its 

efforts on the principal markets in the central 

and southw estern portion of the state. Expansion into the northeast portion of South 

Carolina, and Sumter County in particular,

must be regarded as a logical step at some 

point in time. Bankers Trust’s acquisition of 

Peoples Bank, however, with its relatively 

m odest m arket shares in areas where the 

state’s two largest banks are firm ly established, would not result in the loss of any 

significant potential for future com petition 

between the proponents.

Bankers Trust is currently the fourth largest 

com m ercial bank in South Carolina, holding

11.3 percent of the state’s total com m ercial 

bank deposits. Its acquisition of Peoples 

Bank, the state’s 22nd largest com m ercial 

bank holding a m odest 0.7 percent of such 

funds, would serve to increase the levels of 

statew ide concentration of com m ercial bank 

deposits, however, such a m odest increase 

is not regarded as having any major im pact 

upon com m ercial banking or the concentration of banking resources in South Carolina.

The Board of Directors is of the opinion that 

the proposed m erger would not, in any se ction of the country, substantially lessen com ­

petition, tend to create a m onopoly or in any 

other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. The financial and managerial 

resources of both proponents are regarded 

as satisfactory and the resultant bank is anticipated to have favorable future prospects.

Convenience and Needs of the Community

to be Served. The proposed transaction will 

result in a broader range of com m ercial 

banking services available to the present 

custom ers of Peoples Bank. While such services are generally available at offices of 

regional and statew ide banks in the areas 

now served by Peoples Bank, consum m ation 

of the proposed transaction will provide an 

additional alternative source of such services. Considerations relating to convenience and needs of the com m unity are consistent with approval of the application.

A review of available inform ation, including 

the C om m unity Reinvestm ent Act Statem ents 

of the two proponents and other relevant 

material, disclosed no inconsistencies with 

the purposes of the Act. The resultant bank is 

expected to continue to m eet the credit 

needs of its entire com m unity, consistent with 

the safe and sound operation of the institution.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

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Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Northeast Bank of

Lewiston and

Auburn

Lewiston, Maine

105,030 11 13

to purchase the assets and

assume the deposit liabilities

of

A ugusta and

W aterville

Branches of

Liverm ore Falls

Trust Company

Liverm ore Falls, 

Maine

3,910* 2

* Total IPC deposits of offices to be transferred by 

Liverm ore Falls Trust C om pany. Assets not available 

by office.

Summary report by Attorney General,

July 31, 1978

We have reviewed this proposed transaction and conclude that it would not have a 

significantly adverse effect upon com petition.

Basis for C orporation Approval 

May 7, 1979

N ortheast Bank of Lewiston and Auburn, 

Lewiston, Maine (“ Northeast Bank” ), an insured State nonm em ber bank with total resources of $105,030,000 and total IPC d e ­

p o s its of $ 8 1 ,9 0 6 ,0 0 0 , has a p p lie d , 

pursuantto Section 18(c) and other provisions 

of the Federal Deposit Insurance Act, for the 

C orporation’s prior consent to purchase the 

assets of and assum e the liability to pay 

deposits m ade in the Augusta and W aterville 

branches of Liverm ore Falls Trust Company, 

Liverm ore Falls, Maine (“ Other Bank” ). The 

A ugusta and W aterville offices of Other Bank, 

w ith a g g re g a te to ta l IPC d e p o s its of 

$ 3 ,9 1 0 ,0 0 0 , w o u ld be e s ta b lis h e d as 

branches of Northeast Bank, increasing to 13 

the num ber of banking offices operated.

Northeast Bank is a subsidiary of Northeast 

B ankshare A ssociation, Lew iston, M aine 

(“ Bankshare” ), a m ulti-bank holding com ­

pany controlling eight com m ercial banks in 

M aine w ith a g g re g a te d e p o s its of 

$326,726,000, ranking it as the state’s fourth 

largest com m ercial banking organization, 

with 13.0 percent of the state’s com m ercial 

bank deposits. Bankshare affiliates operate a 

total of 44 offices in eight counties and are 

m ost heavily represented in A ndroscoggin, 

C um berland and Penobscot Counties. Other 

Bank presently operates offices at Liverm ore

Falls and the adjoining com m unity of Jay in 

w est-central Maine, and branches at Augusta and W aterville which are the subject of 

the current proposal. A branch at Chisholm, 

near Jay, was closed in early 1978. The 

A ugusta and W aterville offices are located in 

Kennebec County, approxim ately 28 road 

miles southeast and 50 road miles northeast 

of Liverm ore Falls, respectively, and are deemed to com pete in separate local markets.

Competition. The Augusta office to be acquired is located in a shopping center on a 

major com m ercial street in the state’s capital 

city (1970 population 21,945) and com petes 

in a relevant m arket com posed of the city of 

Augusta and surrounding com m unities within 

an approxim ate 10 mile radius. The local 

econom y is principally based upon activity at 

various state governm ent bureaus and agencies in Augusta with a veterans hospital at 

n e a rb y T ogus also b e in g an im p o rta n t 

econom ic factor.

A total of seven com m ercial banks operate

21 offices in this relevant m arket which includes representation by most of the state’s 

la rg e s t b a n k in g o rg a n iz a tio n s . N e ith e r 

Northeast Bank nor any Bankshare affiliate is 

represented in the market. The nearest office 

of Northeast Bank, which is the nearest office 

of any Bankshare affiliate, is located a p ­

proxim ately 30 road miles southwest, and no 

significant existing com petition is in evidence. Northeast Bank would acquire Other 

B ank’s IPC deposit base of $2,710,000, 

w hich represents a nominal 1.9 percent 

share of the Augusta market. This is seen as 

having no material effect on the structure of 

com m ercial banking in the local m arket or on 

the concentration of banking resources in 

Maine.

The W aterville office to be acquired is 

located in the downtow n business district of 

W aterville (1970 population 18,192) and 

com petes in a relevant m arket com posed of 

that city and surrounding com m unities within 

an approxim ate 10 mile radius. The local 

econom y is based upon diversified m anufacturing with dairy farm ing and recreational 

activities providing some econom ic stimulus. 

A total of six com m ercial banks operate 15 

banking offices in this relevant m arket which 

includes representation by several of the 

state’s largest banking organizations. Neither 

Northeast Bank nor any Bankshare affiliate is 

presently represented in the market. The 

nearest office of a Bankshare affiliate is located approxim ately 35 road miles northwest 

in Farmington, and no significant existing 

com petition is in evidence. Northeast Bank 

would acquire Other Bank’s nominal IPC deposit base of $1,200,000 which represents a

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84 FEDERAL DEPOSIT INSURANCE CORPORATION

1.7 percent share of the W aterville com m ercial banking market. This is seen as having 

no sig n ifica n t effect on the structure of 

com m ercial banking in the local m arket or on 

the concentration of banking resources in 

Maine.

Maine statutes perm it statew ide m erger 

and de novo branching activity and each 

proponent, thus, has the potential to increase 

future com petition by such expansion activity. O ther Bank has operated the Augusta 

and W aterville offices since 1974 as limited 

service facilities and appears to lack sufficient financial and m anagerial resources to 

m ake a significant m arket penetration in 

either of these distant markets. Northeast 

B ank’s acquisition of the Augusta and W aterville offices of Other Bank is view ed as a 

m echanism perm itting Northeast Bank and 

Bankshare to enter these m arkets where 

most of the state’s largest banking organizations are already established. This acquisition, thus, would have no significant effect on 

the potential for future com petition between 

the proponents.

Based on the foregoing, the Board of Directors is of the opinion that the proposed 

transaction would not, in any section of the 

country, substantially lessen com petition, 

tend to create a monopoly, or in any other 

manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. The financial and m anagerial 

resources of Northeast Bank appear sufficient to support the acquisition of these two 

branches and the resultant bank is anticipated to have favorable future prospects.

Convenience and Needs of the Community

to be Served. Northeast Bank proposes to 

upgrade the A ugusta and W aterville offices 

to full service com m ercial bank branches 

providing a num ber of services not presently 

available at Other Bank’s existing facilities. 

While such services are available in both 

Augusta and W aterville at offices of other 

banks, Northeast B ank’s entry into these 

com m unities will provide an additional alternate source of such com m ercial banking 

services. C onsiderations of convenience and 

needs of the com m unities to be served add 

some w eight in favor of approval of the proposed transaction.

A review of available information, including 

the p ro p o n e n ts’ C om m unity Reinvestm ent 

A ct Statements, disclosed no inconsistencies 

with the purposes of the Com m unity Reinvestm ent Act. The resultant institution is expected to continue to m eet the credit needs 

of its entire com m unity, consistent with the 

safe and sound operation of the institution.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

The Eastern Ohio

Bank

Union Township 

(P.O. Morristown), 

Ohio

4,696 1 2

to merge with

The Com m unity

Savings Bank

Company

Yorkville, Ohio

7,933 1

Sum mary report by Attorney General, 

March 30, 1979

We have reviewed this proposed transaction and conclude that it would not have any 

significant effect on com petition.

Basis for C orporation Approval 

May 7, 1979

The Eastern Ohio Bank, Union Township 

(P.O. M orristown), Ohio (“ Eastern Bank” ), an 

insured State nonm em ber bank with total 

resources of $4,696,000 and total IPC deposits of $3,863,000, has applied, pursuant 

to Section 18(c) and other provisions of the 

Federal Deposit Insurance Act, for the Corporation’s prior consent to merge, under its 

charter and title, with The Com m unity Savings Bank Com pany, Yorkville, Ohio (“ CSB” ), 

with total resources of $7,933,000 and total 

IPC deposits of $6,774,000.

Eastern Bank was acquired by and becam e a w holly-ow ned subsidiary of First 

Steuben Bancorp, Inc., Toronto, Ohio (“ First 

Steuben” ) effective D ecem ber 1, 1978. First 

Steuben is a registered m ulti-bank holding 

com pany controlling five com m ercial banks 

in eastern Ohio with aggregate total deposits 

of $209,354,000. On April 2, 1979, the Corporation’s Board of Directors granted its consent to the consolidation of three of these 

subsidiary banks under a new State charter 

in a transaction that was regarded, essentially, as a corporate reorganization.

Competition. Eastern Bank operates its 

sole office in western Belmont County approxim ately 18 road miles west of W heeling, 

West Virginia, serving a small localized m arket whose econom y is predicated upon coal

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m ining. CSB o p e ra te s its sole o ffice in 

Yorkville, in the southeastern portion of Jefferson County in eastern Ohio, approxim ately 

8 road miles north of W heeling and 18 road 

miles south of Steubenville. The area in which 

CSB com petes, which is regarded as the 

relevant m arket in which to assess the com ­

petitive im pact of the proposed transaction, 

is delineated as the area within a 10 to 12 

road-m ile radius of the village of Yorkville 

in clu d in g southern p ortions of Jefferson 

County, adjoining portions of northeastern 

B elm ont C ounty and the nearby city of 

W heeling, West Virginia.

The village of Yorkville (1970 population 

1,656) is located in the Ohio River Valley 

along a principal north-south highway connecting Steubenville with the W heeling area. 

The econom y of the area, within the imm ediate vicinity of Yorkville, is heavily dependent upon steel production facilities located along the Ohio River. The city of 

W heeling (1970 population 48,188) is easily 

a ccessible to this portion of the Ohio River 

Valley and serves as a focal point for retail 

and com m ercial activity.

The offices of Eastern Bank and CSB are 

located approxim ately 24 road miles apart 

with little evidence of significant econom ic 

interaction betw een their relative service 

areas, as the existing highw ay system serves 

to focus travel in east-west and north-south 

directions from the intervening W heeling 

urban area. Located in close proxim ity to 

Yorkville and CSB’s office, however, are two 

offices of H eritage Bank, N.A. — Steubenville 

(“ H eritage Bank” ), the lead bank of First 

Steuben. H eritage Bank’s Tiltonsville office 

(IPC deposits of $5,770,000) is located approxim ately 2 road miles north of CSB while 

Heritage Bank’s office at Brilliant is located 

approxim ately 10 road miles distant. Both of 

these offices are regarded as being in direct 

com petition with CSB. Consum m ation of the 

proposed transaction would serve to elim inate this existing com petition between CSB 

and First Steuben and, similarly, foreclose 

the possibility for increased future com petition between these two banking organizations. In light of the m odest level of deposits 

generated at CSB since its organization in 

1947, however, the proposed transaction is 

viewed as having little significant effect upon 

existing or potential com petition between the 

two banking organizations.

In the relevant m arket a total of 15 com ­

m ercial banks operate 25 banking offices. 

Heritage Bank ranks as the eighth largest 

com m ercial bank in the market, holding 3.6 

percent of its IPC deposit base, while CSB 

ranks as its second sm allest banking organization, holding a m odest 1.5 percent of such 

funds. Eastern Bank is not represented in this 

market. The effect of the proposed transaction would be to increase First S teuben’s 

share of the m arket’s IPC deposits to a p ­

proxim ately 5.0 percent, w hich is not regarded as having any significant im pact 

upon the structure of com m ercial banking in 

the relevant market.

Ohio statutes perm it statew ide holding 

com pany expansion. First Steuben, which 

has confined its activities to a relatively small 

geographic region of eastern Ohio, holds 

only 0.56 percent of the state’s total com m ercial bank deposits, and w ould acquire CSB’s 

nominal 0.02 percent share. The proposed 

transaction thus is regarded as having no 

material effect upon the concentration of deposits or banking resources in the State of 

Ohio.

The Board of Directors is of the opinion that 

the proposed m erger w ould not, in any se ction of the country, substantially lessen com ­

petition, tend to create a m onopoly, or in any 

other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. C onsiderations relating to 

financial and m anagerial resources have 

been satisfactorily resolved, and the resultant 

bank is anticipated to have favorable future 

prospects.

Convenience and Needs of the Community

to be Served. Consum m ation of the proposed 

transaction is anticipated to result in the 

introduction of a broader range of com m ercial banking services at the resultant bank 

w hich should accrue to the benefit of the 

present custom ers of CSB. C onsiderations 

relating to convenience and needs of the 

com m unity are consistent with approval of 

the application.

A review of available inform ation, including 

the Community Reinvestment Act Statements 

of the two proponents and other relevant 

material, disclosed no inconsistencies with 

the purposes of the Act. The resultant bank is 

expected to continue to m eet the credit 

needs of its entire com m unity, consistent with 

the safe and sound operation of the institution.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

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Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Citizens and Farmers

Bank

West Point, Virginia

36,704 2 4

to merge with

The Colonial Bank

Providence Forge, 

Virginia

7,542 2

Sum mary report by Attorney General, 

M arch 9, 1979

We have reviewed this proposed transaction and conclude that it would not have a 

substantially adverse effect upon com petition.

Basis for C orporation Approval 

May 7, 1979

Citizens and Farmers Bank, West Point, 

Virginia (“ C itizens” ), an insured State nonm e m b e r b a n k w ith to ta l re s o u rc e s of 

$ 3 6 ,7 0 4 ,0 0 0 and total IPC d e p o s its of 

$30,786,000, has applied, pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the C orporation’s 

prior consent to m erge with The Colonial 

Bank, Providence Forge, Virginia (“ Colonial” ), with total resources of $7,542,000 and 

total IPC deposits of $5,154,000. The banks 

would m erge under the charter and title of 

Citizens and, incident to the m erger, the two 

existing offices of Colonial would becom e 

branches of the resultant bank, increasing 

the num ber of its offices to four.

Competition. Both banks are located in 

southeastern Virginia, between Richm ond 

and N ew port News. The closest offices of the 

proponents are separated by approxim ately 

18 road miles with no intervening offices of 

other com m ercial banks. The Pamunkey and 

Y ork R ivers se rve as n a tu ra l b a rrie rs 

separating most of the banks’ service areas. 

The only connecting point is at West Point, 

resulting in some overlap in service areas.

The effect of the proposed m erger would 

be most direct and im m ediate in New Kent 

and Charles City Counties, Virginia, the prim ary service area of Colonial. At their closest 

point, New Kent and Charles City Counties 

are 7 and 10 miles, respectively, from the city 

limits of Richm ond and run to within 27 and

22 miles, respectively, of N ewport News. The 

area is m ainly rural and sparsely populated 

with nominal industrial activities. The 1977 

effective household buying incom e of New 

Kent and Charles City Counties was $11, 155

and $8,684, respectively, well below the state 

average of $14,524. Because of the close 

proxim ity of Richm ond, m any of the residents 

of the area com m ute there for em ploym ent 

and other business activities. Colonial is the 

only com m ercial bank represented in this 

tw o-county area. The closest com m ercial 

banks are a pproxim ately ten m iles from 

Quinton Branch, and 15 miles from the main 

office, in the suburbs of Richm ond. While 

Colonial does not actively com pete in the 

Richm ond market, the banks in that area 

provide convenient alternatives for residents 

of New Kent and Charles City Counties who 

work or shop in the Richm ond area. This 

transaction will serve to substitute one independent bank for another and while some 

existing com petition will be elim inated, it is 

not considered significant.

While state statutes would allow increased 

future com petition through de novo branching, it appears unlikely that this would develop. Colonial does not have sufficient financial and m anagerial resources to mount 

any significant expansion program , and the 

limited deposit potential of Colonial’s twocounty m arket area makes it a less than 

desirable area for Citizens to enter de novo.

The proposed m erger would not elim inate 

any significant existing or potential com petition betw een C itizens and C olonial, nor 

would it have any appreciable effect on the 

com m ercial banking structure of any relevant 

market.

Based on the foregoing, the Board of Directors is of the opinion that the proposed 

m erger would not, in any section of the country, substantially lessen com petition, tend to 

create a monopoly, or in any other manner be 

in restraint of trade.

Financial and Managerial Resources; Future Prospects. The financial and managerial 

resources of both proponents are regarded 

as satisfactory for purposes of the proposed 

transaction, and the resultant bank would 

appear to have favorable future prospects.

Convenience and Needs of the Community

to be Served. Consum m ation of the proposed 

m erger would make available expanded services, increased lending limits, and trust services to Colonial’s custom ers. C onsiderations relating to convenience and needs of 

the com m unity appear consistent with approval of the application.

A review of available inform ation disclosed 

no inconsistencies with the purposes of the 

Com m unity Reinvestment Act. The resultant 

bank is expected to continue to meet the 

credit needs of its entire com m unity, consistent with the safe and sound operation of the 

bank.

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Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

The M erchants Bank

Burlington, Vermont

119,133 12 12

to merge with

Batreal, Inc.

Barre, Verm ont

- -

and

Merchants

Properties, Inc.

Burlington, Vermont

- -

Summary report by Attorney General, 

March 30, 1979

The proposed m erger involves two 100% 

owned real estate subsidiary corporations; is 

essentially a corporate reorganization; and 

would have no effect on com petition.

Basis for C orporation Approval 

May 21, 1979

The M erchants Bank, Burlington, Vermont 

(“ M erchants” ), an insured State nonm em ber 

bank with total resources of $119,133,000 

and total IPC deposits of $100,947,000, has 

applied, pursuant to Section 18(c) and other 

provisions of the Federal Deposit Insurance 

Act, for the C orporation’s prior consent to 

m erge with Batreal, Inc., Barre, Vermont 

(“ Batreal” ), and M erchants Properties, Inc., 

B urlington, Verm ont (“ M PI” ), noninsured, 

nonbanking entities w holly-ow ned by Merchants. The proposed transaction would be 

effected under the charter and title of Merchants.

Competition. Batreal was form ed by The 

Barre Trust Com pany, Barre, Vermont, prior 

to its m erger with Merchants. MPI was formed 

in 1958 by The Merchants National Bank, 

predecessor to Merchants. Both Batreal and 

MPI were organized for the purpose of holding 

and m anaging real estate necessary for the 

conduct of banking business. Essentially this 

transaction is an internal reorganization which 

would result in returning title of the real estate 

to M erchants. The proposed transaction 

would have no effect on existing or potential 

competition between the proponents or on the 

structure of comm ercial banking in any relevant area.

The Board of Directors is of the opinion that 

the proposed transaction would not, in any 

section of the country, substantially lessen 

com petition, tend to create a m onopoly, or in 

any other m anner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Financial and m anagerial resources of all parties to the proposed transaction are satisfactory and the resultant bank 

is anticipated to have favorable future prospects.

Convenience and Needs of the Community

to be Served. The proposed m erger would 

not have any effect on the convenience and 

needs of the com m unity to be served.

A review of available inform ation disclosed 

no inconsistencies with the purposes of the 

Com munity Reinvestment Act. The resultant 

bank is anticipated to continue to m eet the 

credit needs of its entire com m unity, consistent with the safe and sound operation of the 

institution.

Based on the foregoing information, the 

Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

First State Bank

Waynesboro,

Mississippi

34,041 4 7

to merge with

Bank of Leakesville

Leakesville,

Mississippi

18,658 3

Summary report by Attorney General, 

March 30, 1979

There appears to be little likelihood that 

present com petition between A pplicant and. 

Bank will be increased as a result of de novo

expansion, in view of their small size and the 

absence of suitable population centers in 

W ayne and Greene Counties in which either 

m ight establish a de novo branch. Moreover, 

c u rr e n t M is s is s ip p i la w re q u ire s th a t 

Leaksville have a population of 3,100 in order 

for a de novo branch to be opened and its 

current population is 1,200.

Basis for C orporation Approval 

June 18, 197

First State Bank, W aynesboro, M ississippi 

(“ FSB” ), an insured State nonm em ber bank

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88 FEDERAL DEPOSIT INSURANCE CORPORATION

with total resources of $34,041,000 and total 

IPC deposits of $26,625,000, has applied, 

pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, 

for the C orporation’s prior consent to merge, 

under its charter and title, with Bank of 

Leakesville, Leakesville, M ississippi (“ BO L” ), 

with total resources of $18,658,000 and total 

IPC deposits of $14,755,000. Incident to the 

transaction, the three offices of BOL would 

be established as branches of FSB.

Competition. FSB, headquartered in the 

tow n of W a y n e s b o ro (19 7 0 p o p u la tio n 

4,368), operates limited service facilities at 

W aynesboro (N orthside) and Clara (estim ated population 200), approxim ately 8 road 

miles southwest; and a drive-up facility at 

Buckatunna (estim ated population 350), approxim ately 12 road m iles southeast, all 

within W ayne County in southeastern M ississippi. BOL, headquartered in the town of 

L e a k e s v ille (19 7 0 p o p u la tio n 1,090) in 

G reene County, operates branches near 

Lucedale (1970 population 2,060), a pproxim ately 22 road miles south, and at State Line 

(1970 population 598), approxim ately 22 

road miles northeast.*

W ayne County (1970 population 16,650), 

located in rural southeastern M ississippi, has 

a diversified econom y encom passing m anufacturing, tim ber production, livestock, agriculture, and oil production. Its 1977 m edian 

household buying level of $8,678, while significantly lower than the state figure, com ­

pares favorably with other nearby areas. 

Greene County (1970 population 8,545), located adjoining and im m ediately south of 

W ayne County, has an econom y predicated 

chiefly on agriculture and tim ber production, 

with its 1977 m edian household buying level 

of $6,445 ranking as one of the lowest in the 

state. In light of the sparse population and 

limited econom ic significance of BO L’s trade 

area and considering the distances between 

banking offices in this rural area, the relevant 

m arkets in which to assess the com petitive 

im pact of the proposed transaction are delineated as the area within an approxim ate 15 

road mile radius of each of BO L’s three 

offices.

The proponents’ closest offices are located 

approxim ately 8 road miles apart in the State

* P rincipals holding stock control of First State Bank 

acq u ire d stock control of Bank of Leakesville in O ctober, 1978. Since the curre nt affiliation of the two 

banks has not heretofore been su b je ct to regulatory 

scrutiny, the affiliation is of no persuasive value in 

determ in ing, for purpose s of the Bank M erger Act, 

w hat co m petitive im pact, if any, the p ropose d tra n sa ction m ay have. Therefore, the Board of D irectors has 

igno red the affiliation in its assessm ent of the proposal.

Line m arket near the W ayne and Greene 

county Line. FSB’s Buckatunna office is a 

limited service drive-up facility consisting of 

only one d rive -in w in d o w and a single 

w alk-up lobby teller station providing for only 

deposit and paym ent functions. The proxim ­

ity of this office to the State Line branch of 

BOL indicates that some existing com petition 

between the proponents would be elim inated 

by the proposed transaction.

In the relatively small State Line relevant 

market, FSB’s Buckatunna facility, establis h e d in 1966, h o ld in g an e s tim a te d 

$2,687,000 in IPC deposits; BO L’s State Line 

B ra n c h , e s ta b lis h e d in 1947, h o ld in g 

$ 3 ,4 6 3 ,0 0 0 in IPC d e p o s its ; and an 

A labam a-based com m ercial bank holding 

$12,445,000 in IPC deposits, com prise all of 

the com m ercial banking alternatives. While 

the proposed transaction would reduce from 

three to two the num ber of com m ercial banks 

represented in the market, it is noted that 

neither FSB nor BOL has generated a sig ­

nificant deposit base through these offices. 

The M ississippi portion of this area had a 

1970 population of 4,280 distributed over 

some 250 square miles, or about 17 persons 

per square mile. Nevertheless, the proposed 

m erger is viewed as having some adverse 

im pact upon the structure of com m ercial 

banking and the concentration of banking 

resources in this local market.

In the Leakesville and Lucedale relevant 

m arkets, FSB in not represented. B O L’s 

Leakesville main office with IPC deposits of 

$9,411,000 is the only com m ercial banking 

office for a distance of approxim ately 20 road 

miles. Its office near Lucedale, established in 

1969, holds IPC deposits of only $1,881,000 

and has failed to develop a significant share 

of the m arket’s deposit base with the two 

la rg e r, lo c a lly -b a s e d c o m m e rcia l banks 

aggregately controlling 94.1 percent of the 

m arket’s IPC deposits. FSB’s acquisition of 

BO L’s offices at Leakesville and Lucedale is 

not regarded as having any significant impact upon the structure of com m ercial banking or the concentration of banking resources 

in their respective markets.

M is s is s ip p i s ta tu te s p e rm it de novo

b ranching within a 100-m ile radius of a 

b a n k ’s hom e o ffic e , s u b je c t to ce rta in 

m inim um capitalization requirem ents and 

home office protection provisions. There are 

no com m unities of sufficient size in Greene 

County open to branching to encourage de

novo entry by FSB. In the Lucedale relevant 

m arket in G eorge County, such expansion is 

feasible for FSB, however, such an occu rrence seems remote in light of the presence 

of established locally-based banks and the

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distance and lack of easy access from its 

present base of operation. BOL, for its part, 

w o u ld be u n lik e ly to e n ter the d is ta n t 

W aynesboro m arket to com pete directly with 

the banks represented there. Therefore, 

there appears to be no significant potential 

for increased com petition to develop between the proponents in the foreseeable future.

The Board of Directors is of the opinion that 

the proposed m erger would eliminate some 

existing com petition between FSB and BOL 

and would som ewhat increase concentration 

in the local market. It would not, however, in 

any section of the country, substantially 

le sse n c o m p e titio n , te n d to c re a te a 

m onopoly, or in any other m anner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. The financial and m anagerial 

resources of FSB and the resultant bank are 

satisfactory. The financial resources of BOL 

w ould be considerably im proved as part of a 

com bined bank which would serve to outw eigh the som ewhat negative com petitive 

aspects of the proposed transaction. The 

resultant bank is anticipated to have favorable future prospects.

Convenience and Needs of the Community

to be Served. Consum m ation of the proposed 

transaction will have little effect on the level 

and pricing of com m ercial banking services 

in the areas served by the proponents. Consid e ra tio n s relating to con ve nie n ce and 

needs are consistent with approval of the 

application.

A review of available information, including 

the C om m unity Reinvestm ent A ct Statem ents 

of the proponents and other relevant m aterial, disclosed no inconsistencies with the 

purposes of the Act. The resultant bank is 

expected to continue to meet the credit 

needs of its entire com m unity, consistent with 

the safe and sound operation of the institution.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands

Banking Offices 

in Operation

of dollars) Before After

Central Savings

Bank

114,888 8 12

Baltimore, Maryland

to merge with

A rlington Federal

Savings and Loan

A ssociation

48,959* 4

Baltimore, M aryland

* Total tim e and savings 

deposits.

Summary report by Attorney General,

May 11, 1979

We have reviewed this proposed transaction and conclude that it would not have a 

substantial com petitive im pact.

Basis for Corporation Approval 

June 25, 1979

Central Savings Bank, Baltimore, M aryland 

(“ CSB” ), an insured mutual savings bank 

with total resources of $114,888,000 and total 

time and savings deposits of $97,257,000, 

has applied, pursuant to Section 18(c) and 

other provisions of the Federal Deposit Insurance Act, for the C orporation’s prior consent 

to merge, under its charter and title, with 

Arlington Federal Savings and Loan A ssociation, Baltimore, Maryland (“ A ssociation”), a 

Federally-insured savings and loan association with total time and savings deposits of 

$48,959,000, upon the latter institution’s conversion to a State charter. Incident to the 

merger, the four offices of Association would 

be established as branches of Central Savings Bank, increasing to 12 the num ber of 

offices operated.

Competition. CSB, based in the com m ercialized “ dow ntow n” portion of the City of 

Baltimore, operates two branches in the City 

of Baltimore, and five in neighboring Baltimore and Anne Arundel Counties. A ssociation, also headquartered in “ dow ntow n” Baltimore, operates three branch offices in Baltim ore County. Both institutions are regarded 

as com peting for funds throughout the m etropolitan Baltim ore area which is regarded as 

the relevant m arket in which to assess the 

com petitive im pact of the proposed transaction. This m arket is delineated as the area 

within an approxim ate 20 mile radius of the 

proponents’ head offices in Baltimore and 

contains a population estim ated to be in 

excess of 1,500,000. The area enjoys a broad 

econom ic base with heavy industry and

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90 FEDERAL DEPOSIT INSURANCE CORPORATION

com m ercial activity prevalent in the central 

city and residential and light industrial developm ent in surrounding areas.

A total of 54 thrift institutions operate 209 

offices in this m arket with the four largest 

institutions aggregately holding 52.9 percent 

of the area’s thrift institution deposits. CSB is 

ranked as the m arket’s 8th largest thrift institution, holding 2.2 percent of its thrift institution deposits, while Association is ranked 

20th and holds a mere 1.1 percent share of 

such funds. The resultant institution would 

increase its m arket share of thrift institution 

deposits to 3.3 percent and rank as the 6th 

largest institution, but would remain substantially sm aller than the larger thrift institutions 

already well established in the market. The 

proposed transaction is regarded as having 

no material effect on the structure of thrift 

institution banking or the concentration of 

resources in the relevant market.

The proxim ity of the proponents’ head offices, located on opposite corners of a major 

“ dow ntow n” Baltim ore intersection, and of a 

branch of CSB located in a suburban shopping center across a major traffic artery from 

another shopping center containing a branch 

office of Association, indicates that the proponents are presently in direct com petition 

and that some existing com petition would be 

elim inated by consum m ation of the proposed 

transaction. Similarly, as Maryland statutes 

perm it state-w ide de novo branching, each 

proponent has the potential to actively expand its operation by this means. Such action could serve to increase com petition between these two institutions. There is, however, evidence of intense com petition for 

thrift deposits in the Baltim ore market; and in 

light of the proponents’ relatively m odest size 

in relation to other Baltim ore thrift institutions, 

the proposed transaction is seen as having 

no significant adverse effect on either existing com petition or on the potential for future 

com petition.

The Board of Directors is of the opinion that 

the transaction would not, in any section of 

the country, substantially lessen com petition, 

tend to create a m onopoly, or in any other 

manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. The financial and managerial 

resources of each proponent are considered 

adequate for purposes of this proposal. The 

resultant bank would have satisfactory financial and m anagerial resources, and its future 

p rospects would appear favorable.

Convenience and Needs of the Community

to be Served. The proposed transaction 

would result in no substantial change in the 

services now available in the market. Considerations of convenience and needs of the

com m unity are consistent with approval of 

the application.

A review of available inform ation, including 

the Com m unity Reinvestmeft A ct Statements 

of the proponents and other relevant m aterial, disclosed no inconsistencies with the 

purposes of the Act. The resultant bank is 

expected to continue to m eet the credit 

needs of its entire com m unity, consistent with 

the safe and sound operation of the institution.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Peoples W estchester

Savings Bank

Tarrytown, New York

767,010 14 17

to merge with

W estchester County

Savings and Loan

Association

Ossining, New York

28,787* 3

* Total deposits.

Summary report by Attorney General, 

June 27, 1979

We have reviewed this proposed transaction and conclude that it would not have a 

significantly adverse effect upon com petition.

Basis for Corporation Approval 

June 25, 1979

Peoples W estchester Savings Bank, Tarrytown, New York (“ P eoples” ), an insured 

mutual savings bank with total resources of 

$ 7 6 7 ,0 1 0 ,0 0 0 and to ta l d e p o s its of 

$707,784,000, has applied, pursuant to Section 18(c) and other provisions of the Federal 

D eposit Insurance Act, for the C orporation’s 

prior consent to m erge with W estchester 

County Savings and Loan Association, Ossining, New York (“ S&L” ), a Federally insured 

mutual savings and loan association, with 

total deposits of $28,787,000. The two institutions would m erge under the charter and 

with the title of Peoples and, incident to the 

m erger, the three offices of S&L would becom e branches of the resultant bank, which 

would com m ence operating with a total of 17 

offices.

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Competition. The m ain o ffice and 13 

branches of Peoples, as well as the three 

offices of S&L, are all located in W estchester 

County. W estchester County is situated imm ediately north of New York City and is part 

of the New York-New Jersey SMSA that consists of the five boroughs of New York City, as 

well as Putnam, Rockland, and W estchester 

Counties in New York, and Bergen County in 

New Jersey. These areas all have close 

econom ic ties, with significant com m utation 

am ong them for work, shopping and leisure. 

In addition, thrift institutions, particularly the 

large New York C ity-based thrifts, advertise 

throughout the area and there is intense 

com petition in the region. The 1970 population of the New York-New Jersey SMSA was 

9,973,577, and there are 849 offices of 144 

th rift in s titu tio n s w ith to ta l d e p o s its of 

$64,165,776,000. The effect of this proposal 

would be insignificant in this area.

The closest offices of the proponents are 

less than one mile apart, with no intervening 

offices of other thrift institutions. In spite of 

this there are alternatives available in the 

vicinity. In W estchester County alone there 

are 120 offices of 40 thrift institutions and the 

co m m u ta tion p a ttern s of area residents 

suggest that the thrift institutions outside the 

county have a substantial com petitive im pact 

within the county. The com petition that would 

be elim inated by this m erger is not considered to be substantial.

New York law restricts de novo expansion 

by a mutual savings bank to one branch each 

year. The developm ent of a significant increase in com petition through such expansion is therefore limited. Further, the intense 

com petition existing among thrift institutions 

in the New York City area m inim izes the 

co m petitive sig n ifica n ce of additional de

novo branching activity.

Based on the foregoing, the Board of Directors is of the opinion that the proposed 

m erger w ould not, in any section of the country, substantially lessen com petition, tend to 

create a m onopoly, or in any other m anner be 

in restraint of trade.

Financial and Managerial Resources; Future Prospects. S&L’s financial condition is 

regarded as less than satisfactory as a result 

of significant potential losses in its security 

portfolio, low capitalization, poor earnings 

retention, and heavy borrowings. The financial condition of Peoples is considered to be 

sound and generally free of such criticism . 

The resultant institution would have the resources to absorb the losses of S&L and 

co rre ct the other deficiencies, within the 

fram ew ork of a financially sound thrift institution. Considerations relating to m anagerial

resources and the future prospects of the 

resultant institution have been satisfactorily 

resolved and outw eigh any adverse com ­

petitive effects.

Convenience and Needs of the Community

to be Served. Some benefit would accrue to 

the custom ers of S&L from the broadening of 

loan and deposit services and expanded 

banking hours at the present offices of S&L; 

however, the proposed transaction is expected to have little material im pact upon 

convenience and needs of the com m unity as 

such services are readily available at offices 

of other thrift institutions in the areas served 

by the proponents. C onsiderations of convenience and needs of the com m unities to be 

served are consistent with approval of the 

transaction.

A review of available inform ation, including 

the proponents’ Com m unity Reinvestm ent 

A ct Statements, disclosed no inconsistencies 

with the purposes of the Com m unity Reinvestm ent Act. The resultant institution is expected to continue to meet the credit needs 

of its entire com m unity, consistent with the 

safe and sound operation of the institution.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

The Dime Savings

Bank of New York

New York 

(Brooklyn), New 

York

4,533,904 14 22

to merge with

Mechanics Exchange

Savings Bank

Albany, New York

272,478 8

Summary report by Attorney General, 

N ovem ber 17, 1978

We have reviewed this proposed transaction and conclude that it would not have a 

substantial com petitive im pact.

Basis for C orporation A pproval 

July 16, 1979

The Dime Savings Bank of New York, New 

York (Brooklyn), New York (“ D im e” ), an insured mutual savings bank with total resources of $4,553,904,000 and total deposits

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92 FEDERAL DEPOSIT INSURANCE CORPORATION

of $4,157,822,000, has applied, pursuant to 

Section 18(c) and other provisions of the 

Federal Deposit Insurance Act, for the Corporation’s prior consent to merge, under its 

charter and title, with M echanics Exchange 

Savings Bank, Albany, New York (“ MESB” ), 

an insured mutual savings bank with total 

resources of $272,478,000 and total deposits 

of $251,361,000, and to establish the eight 

offices of MESB as branches of the resultant 

institution.

Competition. The A pplicant presently operates 13 branches and 16 EFTU facilities in 

Kings, Queens, New York, Nassau, and Suffolk Counties in the extrem e southeastern 

portion of New York State. MESB, headquartered in Albany, operates 4 branches within 

Albany County and a branch office in each of 

Saratoga, Schoharie and O neonta Counties.

The relevant market in which to assess the 

com petitive im pact of the proposed m erger 

is regarded prim arily as the area within a 15 

road-m ile radius of the City of Albany from 

which MESB derives the bulk of its deposits. 

While subject operates a single branch office 

in each of the com m unities of Oneonta, W ilton Township and Cobleskill, these offices 

are of m odest size and their acquisition by 

Dime would have only minimal com petitive 

im pact.

A total of 14 thrift institutions are represented in the Albany market. MESB, ranking as this m arket’s seventh largest thrift 

institution, holds only 5.9 percent of the 

area’s thrift institution deposit base. The two 

largest thrift institutions in this market ag g re ­

gately hold 44.1 percent of its thrift institution 

deposits, and with 18 banking offices are 

regarded as dom inant. Dim e’s acquisition of 

MESB would have no significant adverse 

effect upon the com petitive structure of thrift 

banking in this relevant market.

The D epartm ent of Justice concluded that 

consum m ation of this proposal would not 

result in any substantial com petitive im pact 

and the Com ptroller of the Currency and the 

F ederal R eserve B oard c o n c u rre d th a t 

Dim e’s acquisition of MESB would have no 

adverse com petitive effect.

The proponents’ closest offices are located 

approxim ately 140 road miles apart, and 

there is no significant existing com petition 

between the two institutions which would be 

elim inated by consum m ation of the proposed 

transaction. New York State statutes restrict 

de novo branch expansion by mutual savings 

banks to a single office per year. Thus, the 

potential for the developm ent of significant 

c o m p e titio n b e tw e e n D im e and MESB 

through such expansion is limited.

Dime is the second largest of the state’s 

mutual savings banks holding approxim ately

5.5 percent of their aggregate deposits. Its 

acquisition of MESB, the state’s 63rd largest 

mutual savings bank, would add a nominal 0.3 

percent to that total, which would have little 

effect upon the concentration of thrift institution deposits in New York State.

The Board of Directors is of the opinion that 

the proposed m erger would not, in any section of the country, substantially lessen com ­

petition, tend to create a m onopoly, or in any 

other m anner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Both proponents have satisfactory financial and m anagerial resources, 

as w ould the resultant institution, w hich 

would appear to have favorable future prospects.

Convenience and Needs of the Community

to be Served. Consum m ation of the proposed 

transaction would make available a broader 

range of consum er loans and larger m ortgage loans with a greater variety of financing 

a rra n g e m e n ts than p re s e n tly a v a ila b le 

through MESB. Dim e’s experience with electronic funds transfer units and their planned 

introduction in com m unities served by MESB 

should accrue to the benefit and added convenience of its customers.

A Statem ent in O pposition to the proposed 

m erger has been filed on behalf of New York 

P u b lic In te re s t R e se a rch G ro u p , Inc. 

(“ NYPIRG” ) and other com m unity interest 

groups, urging the FDIC to deny the a p p lica ­

tion based upon Dim e’s record of meeting 

local credit needs. C onsiderable correspondence from individuals and groups com ­

m enting upon the proposed m erger and 

upon Dim e’s lending record have been recieved by the FDIC. The FDIC recognizes its 

responsibility to weigh carefully all com m ents 

and view s re c e iv e d and to c o n d u c t a 

thorough investigation of the lending and 

Com m unity Reinvestment A ct practices of 

the proponents to the proposed m erger.*

In order to provide a forum for the presentation of oral com m ents and opinions, an 

informal proceeding was held in New York 

City on April 24, 1979, from 3:15 p.m. to 8:15 

p.m., before representatives of the FDIC’s

The Com m unity R einvestm ent A ct of 1977 (12 U.S.C. 

2901) requires that the C o rpo ration assess the record 

of the propon ents to the p ropose d transaction in 

m eeting the cre d it needs of their respective, entire 

com m unities, inclu ding low- and m oderate-incom e 

n e ig h b o rh o o d s . W ith th e e x c e p tio n of s e v e ra l 

n e ig hborhoods located in Brooklyn, no serious o b je ctions have been raised to the lending practices in 

com m unities served by the proponents. D im e’s Com ­

m unity R einvestm ent A ct Statem ent delineates all of 

Kings County (Brooklyn), w ithout exception, as a part 

of its com m unity.

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New York Regional Office, including the Regional Director, and the New York State 

Banking Departm ent, including the Superintendent of Banks. At that proceeding, senior 

m anagem ent officials of Dime, representat iv e s ^ NYPIRG, and other m em bers of the 

public were afforded an opportunity to make 

their views known.

Data and figures subm itted by Dime with 

the application and subsequent thereto, including a source and disposition of funds 

schedule, indicate that Dime is providing 

m ortgage funds throughout Kings County 

(Brooklyn) and the rem ainder of its prim ary 

service area, consistent with the safe and 

sound operation of the institution. O bjections 

raised by the com m unity groups regarding 

restrictive lending practices were thoroughly 

reviewed; and, in addition, a CRA assessment of the institution was conducted in order 

to im partially assess the relevant evidence 

presented by both the com m unity groups 

and the A pplicant. Based on this in-depth 

review, it is concluded that Dime has m ade 

available m ortgage funds in Brooklyn, even 

during recent periods of “ tight m oney” and 

disinterm ediation. The figures show a substantial investm ent of available resources 

within the b ank’s prim ary m arket area since 

CRA was enacted in 1977. This continuing 

effort, coupled with a new bank policy not to 

lend out-of-state in 1979, is expected to provide even more near-term m ortgage availability to the residents of Dim e’s m arket area.

However, there was found a need for a d d itional effort by the bank to reach some pockets of low- and m oderate-incom e residents. 

In this regard, the State of New York has 

conditioned its approval on the establishment by the bank of a Division of Com munity 

Affairs, which will have the responsibility of 

consulting with and assisting local individuals and groups as well as advising senior 

bank officials and branch m anagers how 

effectively to carry out their responsibilities 

under CRA.

The special review of D im e’s Com munity 

Reinvestm ent A ct Statem ent and lending 

p ractices was co nducted by C orporation 

examiners on March 2, 1979 and disclosed 

no inconsistencies with the purposes of the 

Act. A sim ilar review of the Com munity Reinvestm ent Act Statem ent and lending p ractices of MESB also disclosed no inconsistencies. No serious objections to the lending 

practices of MESB have been raised by any 

com m unity interest group in opposition to the 

p roposed m erger. The Board of Trustees of 

Dime have officially concluded that if this 

proposal is consum m ated, Dime will not only 

c o n tin u e the p re s e n t a n n ua l level of

m ortgage loans in the MESB service area, 

but also will follow D im e’s broader lending 

policies and endeavor to increase the level of 

m ortgage loans in the M echanics Exchange 

Division consistent with this service area’s 

dem and.

The FDIC considers this case as evidence 

of the effectiveness of the CRA process, 

draw ing together the State and Federal regulators, local com m unity groups and the 

bank in a com m on effort to insure the 

m aximum feasible com m itm ent to the local 

area, together with a program for continuing 

affirm ative actions. A key factor in this case 

was the interest and effort of local groups in 

calling attention to the bank and to the regulators their concerns and needs.

C onsiderations relating to the convenience 

and needs of the com m unity to be served are 

consistent with approval of the application.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Bank of Am erica

National Trust

and Savings

A ssociation

San Francisco, 

California

53,966,405* 1,101’ 1,101’

to acquire the assets and

assume the deposit

liabilities of

The Rosario Branch

of Banco Aleman

T ransatlantico

Buenos Aires, 

Argentina

4,673 1

* Total dom estic 

resources.

' D om estic offices.

Summary report by Attorney General, 

March 30, 1979

We have reviewed this proposed transaction and conclude that it would not have any 

adverse effect on com petition.

Basis for Corporation Approval 

July 30, 1979

Bank of Am erica National Trust and Savings Association, San Francisco, California 

(“ B A ” ), with total dom estic resources of

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94 FEDERAL DEPOSIT INSURANCE CORPORATION

$53,966,405,000 and total dom estic deposits 

of $41,346,739,000, has applied, pursuant to 

Section 18(c) and other provisions of the 

Federal Deposit Insurance Act, for the Corporation’s prior consent to acquire the assets 

and assume the liabilities of the Rosario 

Branch of Banco Alem an Transatlantico, 

Buenos Aires, Argentina (“ BAT” ). The branch 

has total resources of $4,673,000 and total 

deposits of $3,783,000. BAT is a noninsured 

banking corporation operating in A rgentina 

as a subsidiary of Deutsche Bank A. G., 

Frankfurt, Federal Republic of Germany. BA’s 

application to the Board of G overnors of the 

Federal Reserve System for perm ission to 

establish a branch at BAT’s location in 

Rosario City was approved D ecem ber 18, 

1978.

Competition. The proposed transaction 

w ould have a n e g lig ib le effect on B A ’s 

dom estic and foreign markets. The effect of 

this proposal would be to substitute BA for 

BAT in the Rosario, Argentina m arket in 

which BA is not presently represented.

Financial and Managerial Resources; Future Prospects. The financial and managerial 

resources of BA are regarded as satisfactory 

for the purpose of this transaction, and its 

future prospects appear favorable.

Convenience and Needs of the Community

to be Served. The proposal would have no 

perceptible effect on the convenience and 

needs of any of BA’s dom estic m arkets or on 

the Rosario market.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Com m unity Bank &

Trust Company

Tulsa, Oklahoma

43,970 2 2

to merge with

Com m unity Banksite,

Inc.

Tulsa, Oklahoma

- -

Sum mary report by Attorney General, 

May 11, 1979

The proposed m erger involves a 100% 

owned real estate subsidiary corporation; is 

essentially a corporate reorganization; and 

would have no effect on com petition.

Basis for C orporation Approval 

July 30, 1979

Com m unity Bank & Trust Com pany, Tulsa, 

Oklahom a (“ Bank” ), an insured State nonm e m b e r b a n k w ith to ta l re s o u rc e s of 

$ 4 3 ,9 7 0 ,0 0 0 and total IPC d e p o s its of 

$27,427,000, has applied, pursuant to S ection 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the C orporation’s 

prior consent to m erge with C om m unity 

Banksite, Inc., Tulsa, Oklahom a (“ Banksite” ), 

a n o n insu re d , .nonbanking en tity w holly 

owned by Bank. The proposed m erger transaction would be effected under the charter 

and title of Bank.

Competition. Banksite was form ed in 1968 

by Bank for the purpose of holding and 

m anaging real estate necessary for the conduct of banking business. The transaction is 

essentially an internal reorganization which 

would result in title to the real estate being 

returned to Bank. The proposed transaction 

would have no effect on existing or potential 

com petition between the proponents or on 

the structure of com m ercial banking in any 

relevant area.

The Board of Directors is of the opinion that 

the proposed transaction would not, in any 

section of the country, substantially lessen 

com petition, tend to create a m onopoly, or in 

any other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Financial and m anagerial resources of each party to the proposed transaction are satisfactory, and the resultant 

bank is anticipated to have favorable future 

prospects.

Convenience and Needs of the Community

to be Served. The proposed m erger would 

have no effect on the convenience and needs 

of the com m unity to be served.

A review of available inform ation, including 

the Com munity Reinvestment A ct Statem ent 

and other relevant material, disclosed no 

inconsistencies with the purposes of the Act. 

The resultant bank is anticipated to continue 

to meet the credit needs of its entire com ­

munity, consistent with the safe and sound 

operation of the institution.

Based on the foregoing information, the 

Board of Directors has concluded that approval of the application is warranted.

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Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Scotiabank de

Puerto Rico

(in organization) 

San Juan (Hato 

Rey), Puerto Rico

7

to merge with

Banco M ercantil de

Puerto Rico, Inc.

San Juan (Rio 

Piedras), Puerto 

Rico

150,943 3

and

to acquire the assets and

assume the deposit liabilities of

Puerto Rican

branches of The

Bank of Nova

Scotia

Halifax, Canada

430,596* 4

* Total deposits of offices to be transferred by The Bank 

of Nova Scotia. Assets not available by office.

Sum mary report by Attorney General, 

O ctober 20, 1978

We have reviewed this proposed transaction and conclude that it is essentially a 

corporate reorganization and would have no 

effect on com petition.

Basis for Corporation Approval 

July 30, 1979

Pursuant to Sections 5 and 18(c) and other 

provisions of the Federal Deposit Insurance 

Act, applications have been filed for Federal 

deposit insurance on behalf of Scotiabank de 

Puerto Rico, San Juan (Hato Rey), Puerto 

Rico (“ S cotiabank” ), a proposed new bank in 

organization, and for consent to its m erger 

with Banco M ercantil de Puerto Rico, Inc., 

San Juan (Rio Piedras), Puerto Rico (“ Mercantil” ) (total resources $150,943,000; total 

deposits $124,593,000), an insured Com ­

m onwealth chartered nonm em ber bank, and 

for consent to purchase certain assets of and 

assum e the liability to pay certain deposits 

m ade in the Puerto Rican branches of The 

B ank of N ova S co tia , H a lifa x, C a n a d a 

( “ B N S ” ) (to ta l b ra n c h d e p o s its 

$430,596,000) a noninsured foreign bank, 

un d e r the ch a rte r and with the title of 

Scotiabank. Incident to the transaction, three 

offices of M ercantil and the four Puerto Rican 

branches of BNS would becom e offices of 

the resulting bank with the San Juan (Hato

Rey) branch of BNS designated as the main 

office.

Competition. Essentially a corporate reorganization, the proposal would provide a 

means by which BNS may consolidate most 

of its operations in Puerto Rico. BNS has four 

branches in Puerto Rico and, since June of

1975, it has had a controlling interest in 

M ercantil. The transaction would not affect 

the structure of com m ercial banking or the 

concentration of banking resources within 

the relevant market.

Financial and Managerial Resources; Future Prospects. M ercantil’s financial condition is regarded as less than satisfactory 

because of inadequate capital, poor earnin g s re te n tio n and a h igh vo lu m e of 

nonearning assets. The financial condition of 

BNS has proven to be sound and generally 

free of such criticism . The resultant institution 

should, therefore, have the resources to 

correct M ercantil’s deficiencies within the 

fram ework of a financially sound, Federally 

insured banking institution. Considerations 

relating to m anagerial resources and the future prospects of the resultant institution have 

been satisfactorily resolved.

Convenience and Needs of the Community

to be Served. The resulting bank would provide services not presently offered individually by the participating institutions. New services include higher rates on regular savings 

accounts for custom ers of BNS; a larger 

lending limit for custom ers of M ercantil; deposit insurance for custom ers of BNS; and 

com puterized dem and deposits and instalment loans for custom ers of both banks. The 

proposed transaction, however, is expected 

to have little material im pact on convenience 

and needs of the com m unity as such services are readily available at offices of other 

banking institutions in the areas served by 

the proponents.

A review of available inform ation, including 

the Com munity Reinvestment A ct Statem ent 

and other relevant material, disclosed no 

inconsistencies with the purposes of the Act. 

The resultant institution is expected to continue to meet the credit needs of its entire 

com m unity, consistent with the safe and 

sound operation of the institution

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

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Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

First Marine Bank &

Trust Company of

the Palm Beaches

Riviera Beach, 

Florida

179,879 8 14

to merge with

First Marine National

Bank and Trust

Company of Lake

Worth

Lake Worth, Florida

116,385 4

and

First Marine National

Bank & Trust

Company, Jupiter,

Tequesta

Tequesta, Florida

66,242 2

Sum mary report by Attorney General, 

March 9, 1979

The m erging banks are all w holly-ow ned 

subsidiaries of the same bank holding com ­

pany. As such, their proposed m erger is 

essentially a corporate reorganization and 

would have no effect on com petition.

Basis for C orporation Approval 

August 6, 1979

First Marine Bank & Trust Com pany of the 

Palm Beaches, Riviera Beach, Florida (“ First 

M arine” ), an insured State nonm em ber bank 

with total resources of $179,879,000 and total 

IPC deposits of $151,118,000, has applied, 

pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, 

for the C orporation’s prior consent to m erge 

with First Marine National Bank and Trust 

C om pany of Lake Worth, Lake Worth, Florida 

(“ Lake W o rth ” ), with total re so u rce s of 

$116,385,000 and total IPC d e p osits of 

$97,441,000, and First Marine National Bank

& T ru st C o m p a n y , J u p ite r/T e q u e s ta , 

Tequesta, Florida (“ Tequesta” ), with total resources of $66,242,000 and total IPC deposits of $56,079,000. These banks would 

m erge under the charter and title of First 

Marine and, incident to the transaction, the 

four offices of Lake Worth and the two offices 

of T e q u e s ta w o u ld be e s ta b lis h e d as 

branches of the resultant bank.

Competition. Essentially a corporate reorganization, the proposal would provide a 

means by which First Marine Banks, Inc., 

Riviera Beach, Florida (“ Parent” ), a bank

holding com pany, may consolidate its operations in the State of Florida. The proponents 

have been under com m on control since their 

acquisition by Parent (First Marine — 1964; 

Lake Worth and Tequesta — 1973). The 

proposed m erger would not affect the structure of com m ercial banking or the concentration of banking resources within the relevant 

market.

In view of the foregoing, the Board of 

Directors is of the opinion that the proposed 

m erger would not, in any section of the country, substantially lessen com petition, tend to 

create a m onopoly, or in any other m anner be 

in restraint of trade.

Financial and Managerial Resources; Future Prospects. Proponents’ financial and 

m a n a g e ria l re s o u rc e s are c o n s id e re d 

adequate for the purposes of this proposal. 

Financial and m anagerial resources of the 

resultant bank would be satisfactory and its 

future prospects appear favorable.

Convenience and Needs of the Community

to be Served. Services to be offered in the 

relevant m arket by the resultant bank would 

not differ m aterially from those presently offered by each proponent.

A review of available inform ation, including 

the Com m unity Reinvestment A ct Statem ent 

of the three respective institutions and other 

relevant material, indicates no inconsistencies with the purposes of the Act. The resultant institution is expected to continue to 

meet the credit needs of its entire com m unity, 

consistent with the safe and sound operation 

of the institution.

On the basis of the foregoing information, 

the Board of Directors has concluded that 

approval of the application is warranted.

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Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

W accamaw Bank and

Trust Company

W hiteville, North 

Carolina

297,940 46 55

(change title to 

United Carolina 

Bank, W hiteville)

to merge with

Cape Fear Bank &

T rust Company

Fayetteville, North 

Carolina

39,400 7

and

Capitol National

Bank

Raleigh, North 

Carolina

12,246 2

Sum mary report by Attorney General, 

May 22, 1979

The m erging banks are both wholly-owned 

subsidiaries of the same bank holding com ­

pany. As such, their proposed m erger is 

essentially a corporate reorganization and 

would have no effect on com petition.

Basis for C orporation Approval 

A ugust 13, 1979

W a c c a m a w B ank and T ru st C o m p a n y, 

W hiteville, North Carolina (“ W accam aw ” ), an 

insured State nonm em ber bank with total 

resources of $297,940,000 and total IPC deposits of $226,968,000, has applied, pursuant to Section 18(c) and other provisions of 

the Federal Deposit Insurance Act, for the 

C orporation’s prior consent to m erge with 

C ape Fear Bank & Trust Com pany, Fayetteville, North Carolina (“ C ape Fear” ), an insured State nonm em ber bank with total resources of $39,400,000 and total IPC deposits of $31,160,000, and Capitol National 

Bank, Raleigh, North Carolina (“ C apitol” ), 

with total resources $12,246,000 and total 

IPC deposits of $7,985,000. These banks 

w o u ld m e rg e u n d e r th e c h a rte r of W a c ­

cam aw and with the title “ United Carolina 

Bank, W hiteville” and, incident to the transaction, the eight offices (including one approved but unopened) of Cape Fear and the 

two offices of Capitol would be established 

as branches of the resultant bank.

Competition. Essentially a corporate reorganization, the proposal would provide a 

m eans by which United Carolina Bancshares

Corporation, W hiteville, North Carolina (“ United” ), a bank holding com pany, may cons o lid a te its o p e ra tio n s in e a s te rn N orth 

Carolina. United has one other banking subsidiary which is located in south-central North 

Carolina. The proponents have been under 

com m on control since 1973. The proposed 

m e rg e r w o u ld not a ffe c t th e s tru c tu re of 

com m ercial banking or the concentration of 

banking resources within the relevant market.

In view of the foregoing, the Board of 

D irectors is of the opinion that the proposed 

m erger would not, in any section of the country, substantially lessen com petition, tend to 

create a m onopoly, or in any other manner be 

in restraint of trade.

Financial and Managerial Resources; Future Prospects. P ro p o n e n ts ’ fin a n c ia l and 

m a n a g e ria l re s o u rc e s are c o n s id e re d 

adequate for the purposes of this proposal. 

Financial and m anagerial resources of the 

resultant bank would be satisfactory and its 

future prospects appear favorable.

Convenience and Needs of the Community

to be Served. Services to be offered in the 

relevant m arket by the resultant bank would 

not differ m aterially from those presently offered by each proponent.

A review of available inform ation, including 

the Com m unity Reinvestment A ct Statements 

of each of the three banks, discloses no 

in c o n s is te n c ie s w ith th e p u rp o s e s of the 

Com munity Reinvestment Act. The resultant 

institution is expected to continue to m eet the 

credit needs of its entire com m unity, consistent with the safe and sound operation of the 

institution.

On the basis of the foregoing inform ation, 

the Board of Directors has concluded that 

approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Florida Coast Bank

of Pompano Beach

Pom pano Beach, 

Florida

176,596 6 10

(change title to 

Florida Coast Bank 

of Broward County)

to merge with

Florida Coast Bank

of Coral Springs,

National

A ssociation

M argate, Florida

42,655 4

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Summary report by Attorney General, 

February 26, 1979

The m erging banks are both w holly-owned 

subsidiaries of the same bank holding com ­

pany. As such, their proposed m erger is 

essentially a corporate reorganization and 

would have no effect on com petition.

Basis for C orporation Approval 

August 20, 1979

Florida Coast Bank of Pom pano Beach, 

Pom pano Beach, Florida (“ Pom pano 

B each” ), an insured State nonm em ber bank 

with total resources of $176,596,000 and total 

IPC deposits of $138,362,000, has applied, 

pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, 

for the C orporation’s prior consent to m erge 

with Florida Coast Bank of Coral Springs, 

National Association, M argate, Florida 

(“ M argate” ), with total resources of 

$42,655,000 and total IPC deposits of 

$32,029,000. These banks would m erge 

under the charter of Pom pano Beach and 

with the title “ Florida Coast Bank of Broward 

County” and, incident to the transaction, the 

four offices of M argate would be established 

as branches of the resultant bank.

Competition. Essentially a corporate reorganization, the proposal would provide a 

means by which Florida Coast Banks, Inc., 

Pom pano Beach, Florida (“ FCB” ), a bank 

holding com pany, may consolidate its operations in Broward County. The proponents 

have been under com m on control since 

1974. The proposed m erger would not affect 

the structure of com m ercial banking or the 

concentration of banking resources within 

the relevant market.

In view of the foregoing, the Board of 

Directors is of the opinion that the proposed 

m erger would not, in any section of the country, substantially lessen com petition, tend to 

create a m onopoly, or in any other m anner be 

in restraint of trade.

Financial and Managererial Resources;

Future Prospects. Proponents’ financial and 

m anagerial resources are considered 

adequate for the purposes of this proposal, 

and the future prospects of the resultant bank 

appear favorable.

Convenience and Needs of the Community

to be Served. Services to be offered in the 

relevant m arket by the resultant bank would 

not differ m aterially from those presently offered by each proponent.

A review of available inform ation, including 

the Com m unity Reinvestment A ct Statements 

of both banks, discloses no inconsistencies 

with the purposes of the Com munity Reinvestm ent Act. The resultant institution is expected to continue to meet the credit needs 

of its entire com m unity, consistent with the 

safe and sound operation of the institution.

On the basis of the foregoing information, 

the Board of Directors has concluded that 

approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

First Am erican Bank

of Dade County

North Miami, Florida

67,522 1 2

to merge with

First Am erican Bank

of Homestead

Hom estead, Florida

16,344 1

Sum mary report by Attorney General, 

April 20, 1979

The m erging banks are both majorityowned subsidiaries of the same bank holding 

com pany. As such, their proposed m erger is 

essentially a corporate reorganization and 

would have no effect on com petition.

Basis for C orporation Approval 

August 20, 1979

First Am erican Bank of Dade County, North 

Miami, Florida (“ A p p lica n t” ), an insured State 

nonm em ber bank with total assets of 

$67,522,000 and total IPC deposits of 

$56,895,000, has applied, pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the C orporation’s 

prior consent to m erge with First Am erican 

Bank of Hom estead, Hom estead, Florida 

(“ Other Bank” ), an insured State nonm em ber 

bank with total assets of $16,344,000 and 

total IPC deposits of $11,611,000. These 

banks would m erge under the charter and 

title of A pplicant and, incident to the transaction, the sole office of Other Bank would be 

established as a branch of the resultant 

bank.

Competition. Essentially a corporate reorganization, the proposal would provide a 

m eans by which Am erican Bankshares, Inc., 

North Miami, Florida, a bank holding com ­

pany, may consolidate its operations in the 

North M iam i-Hom estead banking market. 

The proponents have been com m only controlled by Am erican Bankshares, Inc. since 

1973. The proposed m erger would not affect 

the structure of com m ercial banking or the

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concentration of banking resources within 

the relevant market.

In view of the foregoing, the Board of 

D irectors is of the opinion that the proposed 

m erger would not, in any section of the country, substantially lessen com petition, tend to 

create a m onopoly, or in any other manner be 

in restraint of trade.

Financial and Managerial Resources; Future Prospects. Proponents’ financial and 

m anagerial resources are considered 

adequate for the purposes of this proposal, 

and the resultant bank’s future prospects 

appear favorable.

Convenience and Needs of the Community

to be Served. Services to be offered in the 

relevant m arket by the resultant bank would 

not differ m aterially from those presently offered by each proponent.

A review of available inform ation, including 

the Com m unity Reinvestment A ct Statement 

of both banks, discloses no inconsistencies 

with the purposes of the Act. The resultant 

institution is expected to continue to meet the 

credit needs of its entire com m unity, consistent with the safe and sound operation of the 

institution.

On the basis of the foregoing information, 

the Board of Directors has concluded that 

approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

First Bank 469,704* 30 35

New Haven,

Connecticut

to acquire the assets and

assume the deposit liabilities

of

The G uaranty Bank 39,995 5

and Trust

Com pany

Hartford,

C onnecticut

* D om estic resources.

Sum mary report by Attorney General, 

no report received.

Basis for Corporation Approval 

August 27, 1979

Pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, 

an application has been filed on behalf of 

First Bank, New Haven, Connecticut, an insured State nonm em ber bank with total 

dom estic resources of $469,704,000 and 

total dom estic IPC deposits of $365,265,000, 

for the C orporation’s consent to acquire the 

assets of and assum e the liability to pay 

deposits m ade in The G uaranty Bank and 

T ru st C o m p a n y , H a rtfo rd , C o n n e c tic u t 

(“ Guaranty Bank” ), with total resources of 

$ 3 9 ,9 9 5 ,0 0 0 and total IPC d e p o s its of 

$33,805,000. Incident to the transaction, the 

five offices of Guaranty Bank will be established as branches of First Bank. The proposed transaction is inseparable from a 

com panion application filed with the Board of 

Governors of the Federal Reserve System 

w hereby FirstB ancorp, Inc., New Haven, 

C o nnecticut (“ B a n c o rp ” ), parent of First 

Bank, seeks to aquire the outstanding shares 

of stock of the two com m ercial banks affiliated with G uaranty Bank, which together 

presently form The C onnecticut BancFederation, Inc., Hartford, C onnecticut (“ CBF). 

Upon consum m ation of the related transactions, CBF and Guaranty Bank will be liquidated.

Competition. First Bank operates 30 offices 

in south-central C onnecticut and a single 

foreign office in the Cayman Islands. While 

centered chiefly in New Haven and heavily 

represented in that city and surrounding 

com m unities, First Bank operates a branch 

netw ork encom passing approxim ately 50 

miles of C onnecticut coastline from Milford in 

the west to New London in the east, as well as 

offices in the W allingford area north of New 

Haven. Guaranty Bank operates a total of five 

offices in the city of Hartford and in the 

adjoining town of W est Hartford in northcentral C onnecticut.

The relevant m arket in which to assess the 

com petitive im pact of the proposed transaction is regarded as the prim ary service area 

of Guaranty Bank which includes the city of 

H artford and the adjacent com m unities of 

East H a rtfo rd , W e th e rs fie ld , and W est 

Hartford. This area contains an estim ated 

1970 population in excess of 300,000 and 

has a diversified econom ic base encom ­

passing governm ental services, com m erce 

and heavy industry. Hartford is the state 

capital and contains a large, w ell-established 

insurance industry.

The trade areas of First Bank and Guaranty 

Bank are separate and distinct with their 

closest offices approxim ately 25 road miles 

distant. The intervening Meridan SMSA (1970 

p opula tio n 55,959) and the New Britain 

SMSA (1970 population 145,269) serve to 

effectively separate the H artford relevant 

m arket from areas now served by First Bank. 

Affiliates of Guaranty Bank, based in New

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Britain and Terryville, whose closest offices 

are located approxim ately 12 and 31 road 

miles, respectively from the nearest office of 

First Bank, are regarded as also serving 

distinctly separate m arkets and do not com ­

pete, to any significant degree, with First 

Bank. The proposed transaction, therefore, 

would not elim inate any significant existing 

com petition between the two banking organizations involved.

In the Hartford relevant m arket a total of 

seven com m ercial banks are represented, 

with G uaranty Bank holding a m odest 2.2 

percent share of the m arket’s com m ercial 

bank IPC deposit base. The area is dom inated by the state’s two largest com m ercial 

banks, both of which are based in Hartford, 

w hich aggregately hold an 88.1 percent 

share of the m arket’s com m ercial bank IPC 

deposits. Consum m ation of the proposed 

transaction would m erely substitute a large 

southern C o n n e c tic u t-b a s e d co m m e rcial 

bank for an ineffective com petitor in the 

Hartford m arket and would not have any 

adverse effect upon the structure of com ­

m ercial banking in this relevant area.

C o n n e cticu t statutes perm it sta te w ide 

m erger and de novo branching activity, subject to a home office protection provision. 

First B ank is th e re fo re p ro h ib ite d from 

branching into the city of Hartford and other 

com m unities containing an existing bank’s 

head office. G uaranty Bank and its affiliates 

face sim ilar difficulty in expanding southward 

into areas now served by First Bank. In a d d ition, G uaranty B ank’s present w eakened 

condition serves to prevent it and its parent 

from em barking upon any form of expansion 

into new m arkets at this time. The proposal 

would have little effect upon the potential for 

in cre a se d c o m p e titio n betw een the tw o 

banking organizations in the foreseeable future.

Bancorp, holding 4.4 percent of C onnecticu t’s total com m ercial bank deposits, ranks 

as the state’s eighth largest com m ercial 

banking organization. CBF, holding a 1.4 

percent share of such funds, ranks as Conne cticut’s eleventh largest banking organization. The proposed series of transactions will 

result in a banking organization which will 

rank as C onnecticut’s seventh largest, holding a m odest 5.8 percent share of the state’s 

com m ercial bank deposits. Such a consequence is not view ed as having any significant adverse com petitive im pact in light of the 

num ber of substantially larger banking organizations in the state which offer intense 

com petition.

The Board of Directors is of the opinion that 

the proposed transaction would not, in any

section of the country, substantially lessen 

com petition, tend to create a m onopoly, or in 

any other m anner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. The financial and m anagerial 

resources of Guaranty Bank have been seriously w eakened by serious asset problem s 

and deposit losses in recent months. The 

proposed transaction is a vehicle whereby 

these problem s may be resolved within the 

fram ework of a relatively larger, financially 

sound com m ercial banking organization. 

Considerations relating to the financial and 

m anagerial resources of the resultant bank 

have been satisfactorily resolved, and its 

future prospects appear favorable.

Convenience and Needs of the Community

to be Served. The availability of an additional 

regional banking organization in the Hartford 

m arket which can offer higher lending limits 

and additional banking services than presently available at offices of G uaranty Bank 

should accrue to the benefit of the local 

com m unity. C onsiderations relating to the 

convenience and needs of the com m unity 

are consistent with and add some w eight in 

favor of approval of the application.

A review of available inform ation, including 

the Com m unity Reinvestment Act Statements 

of the proponents and other relevant m aterial, disclosed no inconsistencies with the 

purposes of the Act. The resultant bank is 

e xpected to continue to meet the credit 

needs of its entire com m unity, consistent with 

the safe and sound operation of the bank.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Southeast Beach

State Bank

Bay County (P. 0 . 

Panama City), 

Florida

21,187 2 3

(change title to 

Southeast Bank of 

Panama City)

to merge with

Southeast National

Bank of Panama

City

Panama City, 

Florida

12,974 1

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Summary report by Attorney General, 

March 30, 1979

The m erging banks are both w holly-owned 

subsidiaries of the same bank holding com ­

pany. As such, their proposed m erger is 

essentially a corporate reorganization and 

would have no effect on com petition.

Basis for Corporation Approval 

Septem ber 10, 1979

Southeast Beach State Bank, Bay County 

(P. O. Panama City), Florida (“ A p p lica n t” ), an 

insured State nonm em ber bank with total 

resources of $21,187,000 and total IPC d e ­

posits of $15,772,000, has applied, pursuant 

to Section 18(c) and other provisions of the 

Federal Deposit Insurance Act, for the Corporation’s prior consent to m erge with Southeast National Bank of Panama City, Panama 

City, Florida (“ Other Bank” ), with total resources of $12,974,000 and total IPC deposits of $9,040,000. These banks would 

m erge under the charter of A pplicant and 

with the title “ Southeast Bank of Panama 

C ity” . The one existing and one approved but 

unopened office of Other Bank would be 

established as branches of the resultant 

bank.

Competition. Essentially a corporate reorganization, the proposal would provide a 

means by which Southeast Banking C orporation, Miami, Florida, a m ulti-bank holding 

com pany, may consolidate its operations in 

the Panama City area. The proponents have 

been com m only controlled since 1974. The 

proposed m erger would not affect the structure of com m ercial banking or the concentration of banking resources within the relevant 

market.

In view of the foregoing, the Board of 

Directors is of the opinion that the proposed 

m erger w ould not, in any section of the country, substantially lessen com petition, tend to 

create a m onopoly, or in any other m anner be 

in restraint of trade.

Financial and Managerial Resources; Future Prospects. Proponents’ financial and 

m a n a g e ria l re s o u rc e s are c o n s id e re d 

adequate for the purposes of this proposal. 

Financial and m anagerial resources of the 

resultant bank would be satisfactory and its 

future prospects appear favorable.

Convenience and Needs of the Community

to be Served. Services to be offered in the 

relevant m arket by the resultant bank would 

not differ m aterially from those presently offered by each proponent.

A review of available inform ation, including 

the p roponents’ Com m unity Reinvestm ent 

A ct Statements, discloses no inconsistencies

with the purposes of the Act. The resultant 

institution is expected to continue to meet the 

credit needs of its entire com m unity, consistent with the safe and sound operation of the 

institution.

On the basis of the foregoing inform ation, 

the Board of Directors has concluded that 

approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

BayBank

Newton-W altham

T rust Com pany

W altham, 

M assachusetts 

(change title to 

BayBank 

M iddlesex)

524,503 31 64

to merge with

BayBank Middlesex,

N. A.

Burlington,

M assachusetts

482,405 33

Summary report by Attorney General, 

June 27, 1979

The m erging banks are both w holly-ow ned 

subsidiaries of the same bank holding com ­

pany. As such, their proposed m erger is 

essentially a corporate reorganization and 

w ould have no effect on com petition.

Basis for C orporation Approval 

Septem ber 17, 1979

BayB ank N ew ton-W altham Trust C om ­

pany, W altham , M assachusetts (“ A p p lic ­

ant”), an insured State nonm em ber bank with 

total resources of $524,503,000 and total IPC 

deposits of $390,871,000, has applied, pursuant to Section 18(c) and other provisions of 

the Federal D eposit Insurance Act, for the 

C orporation’s prior consent to m erge with 

BayBank M iddlesex, N. A., Burlington, M ass a c h u s e tts , w ith to ta l re s o u rc e s of 

$482,405,000 and total IPC d e p osits of 

$369,329,000. These two banks would m erge 

under the charter of A p plicant and with the 

title “ BayBank M iddlesex” . The 33 offices of 

BayBank M iddlesex, N. A. would be established as branches of the resultant bank, and 

the main office location would be redesignated to the present main office location of 

BayBank M iddlesex, N. A.

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Competition. Essentially a corporate reorganization, the proposal would provide a 

m eans by which BayBanks, Inc., Boston, 

M assachusetts, a bank holding com pany, 

may consolidate the bulk of its operations in 

M iddlesex County. The proponents have 

been com m only controlled since 1929. The 

proposed m erger would not affect the structure of com m ercial banking or the concentration of banking resources within the relevant 

market.

In view of the foregoing, the Board of 

Directors is of the opinion that the proposed 

m erger would not, in any section of the country, substantially lessen com petition, tend to 

create a m onopoly, or in any other manner be 

in restraint of trade.

Financial and Managerial Resources; Future Prospects. Proponents’ financial and 

m a n a g e ria l re s o u rc e s are c o n s id e re d 

adequate for the purposes of this proposal, 

and the future prospects of the resultant bank 

appear favorable.

Convenience and Needs of the Community

to be Served. Services to be offered in the 

relevant m arket by the resultant bank would 

not differ m aterially from those presently offered by each proponent.

A review of available information, including 

the p ro ponents’ C om m unity Reinvestm ent 

Act Statements, disclosed no inconsistencies 

with the purposes of the Act. The resultant 

institution is expected to continue to m eet the 

credit needs of its entire com m unity, consistent with the safe and sound operation of the 

institution.

On the basis of the foregoing inform ation, 

the Board of Directors has concluded that 

approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Am erican Pacific

State Bank

Los Angeles (Sun 

Valley), California

26,363 2 3

to acquire the assets and

assume the deposit liabilities

of

Sherman Oaks

Branch —

M anufacturers

Bank

Los Angeles, 

California

7,134* 1

* Total IPC dep osits of office to be transferred by

M anufacturers Bank. Assets not reported by office.

Summary report by Attorney General, 

April 20, 1979

We have reviewed this proposed transaction and conclude that it would not have a 

substantial com petitive im pact.

Basis for Corporation Approval 

Septem ber 17, 1979

Am erican Pacific State Bank, Los Angeles, 

(Sun Valley), California (“ A m erican” ), an insured State nonm em ber bank with total resources of $26,363,000 and total IPC deposits of $19,727,000, has applied, pursuant 

to Section 18(c) and other provisions of the 

Federal Deposit Insurance Act, for the Corporation’s prior consent to acquire the assets 

of and assum e the liability to pay the deposits 

m ade in the Sherman Oaks Branch of Manufacturers Bank, Los Angeles, C alifornia 

( “ M a n u fa c tu re rs ” ). The S herm an O aks 

B ra n c h , w ith to ta l IPC d e p o s its of 

$7,134,000, would be operated as a branch 

of Am erican.

Competition. Am erican operates its head 

office in the com m unity of Sun Valley and a 

b ra n c h a c q u ire d in 1978 from a San 

Francisco-based bank in the adjacent com ­

m unity of North Hollywood, both locations in 

the San Fernando Valley portion of the city of 

Los Angeles. The Sherman Oaks office to be 

acquired is located in the com m unity of 

Sherman Oaks in the southern portion of the 

San Fernando Valley approxim ately 8 road 

miles southw est of A m erican’s head office 

and approxim ately 4 road miles from its North 

Hollywood Office.

The relevant m arket in which to assess the 

com petitive im pact of the proposed transaction is regarded as the com m unity of Sherman Oaks which is located approxim ately 15 

road miles northwest of the “ dow ntow n” 

business district of Los Angeles. Sherman 

Oaks is prim arily a residential com m unity 

with a population estim ated at 63,000. As 

Am erican is not represented in this relevant 

m arket and appears to derive little of its 

business from the com m unity, the proposed 

transaction is regarded as having no significant effect upon existing com petition.

A total of 10 com m ercial banks operate 16 

offices in the Sherman Oaks market. Included among these banks are several of 

C alifornia’s largest com m ercial banks, with 

the three largest banks in the m arket aggregately controlling 67.3 percent of the market’s IPC deposit base. Incident to the proposed transaction, M anufacturers, w hich 

presently holds only a m odest 2.2 percent 

share of the m arket’s IPC deposits, ranking it 

as the sm allest bank represented in the m arket, will w ithdraw and be replaced by Am eriDigitized for FRASER 

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 103

can. The proposed transaction would have 

no adverse effect upon the structure of com ­

m ercial banking in this relevant area.

As C alifornia statutes perm it statew ide 

branching activity, either Am erican or M anufacturers can enter the areas presently 

served by the other by means of de novo

branch expansion. The m anagem ent of M anufacturers, however, has indicated its intention of concentrating its energies in the 

wholesale banking field and is unlikely, after 

disposing of its retail branches in the San 

Fernando Valley, to expand into the retailoriented areas now served by Am erican in 

the foreseeable future. Am erican, with its 

rapidly grow ing but limited resource based, 

is unlikely to expand into the heavily banked 

areas such as S herm an O aks w here a 

num ber of large banking organizations are 

firm ly established. The proposed transaction 

w ould not elim inate any significant potential 

for com petition between the proponents.

Under the circum stances, the Board of 

Directors is of the opinion that the proposed 

transaction would not, in any section of the 

country, substantially lessen com petition, 

tend to create a m onopoly, or in any other 

m anner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. The m anagerial resources of 

Am erican and of the resultant bank are regarded as satisfactory. With the proposed 

addition to the capital structure of the resultant bank, its financial resources will be 

adequate to support the proposed a cquisition, and the resultant bank is anticipated to 

have favorable future prospects.

Convenience and Needs of the Community

to be Served. The proposal will not affect the 

num ber of banking offices serving the Sherman Oaks com m unity, nor is it expected to 

have any material im pact upon the level of 

c o m m e rcia l ban king s e rvice s a va ilab le . 

Am erican, however, is anticipated to com ­

pete more aggressively for the retail-oriented 

banking business in the com m unity than has 

M anufacturers. C onsiderations of convenience and needs of the com m unity are consistent with approval of the transaction.

A review of available information, including 

the Com m unity Reinvestment Act Statements 

of the two respective institutions and other, 

relevant material, indicates no inconsistencies with the purposes of the Act. The resultant bank is expected to continue to meet the 

credit needs of its entire comm unity, consistent with the safe and sound operation of the 

bank.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

First-C itizens Bank &

Trust Com pany

Raleigh, North 

Carolina

1,292,597 228 229

to merge with

Bank of Conway

Conway, North 

Carolina

4,451 1

Summary report by Attorney General, 

M arch 21, 1980

We have reviewed this proposed transaction and conclude that it would not have an 

adverse effect upon com petition.

Basis for Corporation Approval 

O ctober 1, 1979

F irst-C itizens Bank & Trust C om pany, 

Raleigh, North Carolina (“ First-C itizens” ), an 

insured State nonm em ber bank with total 

resources of $1,292,597,000 and total IPC 

deposits of $1,007,708,000, has applied, 

pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, 

for the C orporation’s prior consent to m erge 

w ith B ank of C o n w a y, C o n w a y, N orth 

Carolina (“ Other Bank” ), with total resources 

of $4,451,000 and total IPC d eposits of 

$3,628,000. The banks would m erge under 

the charter and title of First-Citizens and, 

incident to the m erger, the one existing office 

of Other Bank w ould becom e a branch of the 

resultant bank, increasing the num ber of its 

offices to 229.

Competition. F irst-C itize n s is the fifth 

largest bank in North Carolina. It currently 

operates 228 offices throughout the state. 

The nearest office of First-Citizens to Other 

Bank is located in W eldon, approxim ately 26 

miles west of Conway, where Other Bank 

operates its only office. The areas served by 

the two banks do not overlap, and the proposed m erger would not elim inate any sig ­

nificant existing com petition between them.

The effect of this proposal would be most 

pronounced in the prim ary m arket area of 

Other Bank which extends for twelve to fifteen road miles from Conway. Conway is a 

rural village in Northam pton County, and the 

m arket area includes a substantial part of 

Northam pton County and western Hertford 

County, North Carolina, and the Boykins and 

B ranchville com m unities in Southam pton 

County, Virginia. There are six banking institutions operating eight banking offices in

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the relevant m arket area, including three offices of the second largest bank in the state. 

Other Bank has only 5.2 percent of the total 

IPC deposits in the m arket area, and is the 

sm allest of the six banks. First-Citizens is not 

represented in the m arket area and, inasm uch as the proposal would m erely substitute First-Citizens for Other Bank at the same 

site, the local m arket structure would not be 

affected.

Under North Carolina law, each bank could 

establish de novo branches in areas served 

by the other bank. Because of its limited 

resources, Other Bank is unlikely to engage 

in any such de novo branching activity. 

First-Citizens has the capability for de novo

branching, but there is little incentive to enter 

by this route because of the num ber of com ­

m ercial banking offices already in the market 

area. It therefore appears unlikely that any 

significant potential com petition would be 

elim inated by the proposed merger.

Based on the foregoing, the Board of Directors is of the opinion that the proposed 

m erger would not, in any section of the country, substantially lessen com petition, tend to 

create a m onopoly, or in any other manner be 

in restraint of trade.

Financial and Managerial Resources; Future Prospects. Both proponents have satisfactory financial and m anagerial resources, 

as would the resultant bank. Future prospects appear favorable.

Convenience and Needs of the Community

to be Served. Consumm ation of this proposed m erger would make available to the 

public a more aggressive banking organization which will provide expanded banking 

services to the people of Conway and its 

relevant m arket area. Considerations of convenience and needs are therefore consistent 

with approval of the proposed merger.

A review of available information, including 

the proponents’ Com m unity Reinvestm ent 

A ct Statements, discloses no inconsistencies 

with the purposes of the Act. The resultant 

institution is expected to continue to meet the 

credit needs of its entire comm unity, consistent with the safe and sound operation of the 

institution.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Erie Savings Bank

Buffalo, New York

1,898,590 15 16

to merge with

Fredonia Savings

and Loan

A ssociation

Fredonia, New York

7,504 1

Sum mary report by Attorney General, 

June 27, 1979

We have reviewed this proposed transaction and conclude that it would not have a 

substantial com petitive im pact.

Basis for C orporation Approval 

O ctober 1, 1979

Erie Savings Bank, Buffalo, New York, an 

insured mutual savings bank with total resources of $1,898,590,000 and total deposits 

of $1,758,419,000, has applied, pursuant to 

Section 18(c) and other provisions of the 

Federal Deposit Insurance Act, for the Corporation’s consent to m erge, under its charter and title, with Fredonia Savings and Loan 

Association, Fredonia, New York (“ FSL” ), a 

Federally-insured, S tate-chartered savings 

and loan association with total resources of 

$7,504,000 and total deposits of $6,901,000, 

and to establish the sole office of FSL as a 

branch of Erie Savings Banks which would 

com m ence operation with a total of 16 fullservice offices.

Competition. Erie Savings Bank, established in 1854, operates 15 full-service offices in three counties of western New York 

state. H eadquartered in Buffalo, Erie Savings 

Bank is prim arily represented in that city and 

surrounding areas of Erie County. Additional 

branches are operated at Jamestown and in 

the Olean area, approxim ately 65 and 75 

miles south of Buffalo, respectively. The institution has been active in establishing EFT 

Units and presently operates such facilities in 

10 counties, as far east as the Syracuse area. 

FSL, established in 1927, operates its sole 

office in the Village of Fredonia (1970 population 10,326) approxim ately 45 miles southwest of Buffalo.

The relevant m arket in which to assess the 

com petitive im pact of the proposed transaction is regarded as the area within a 10-12 

road-m ile radius of Fredonia-Dunkirk containing an estim ated 1970 population of 

40,000. The Village of Fredonia is located in 

northern Chautauqua County adjacent to the

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 105

city of Dunkirk (1970 population 16,855) 

which is a m ajor center for m anufacturing 

and industrial activity. Southern portions of 

Chautauqua County are more agriculturally 

oriented. Stainless steel products and p rocessed foods provide the chief nonagricultural 

em ploym ent alternatives, with the State Univ e ris ty C o lle g e at F re d o n ia p ro v id in g 

em ploym ent for approxim ately 1,100.

The proponents’ closest offices are located 

approxim ately 32 road miles apart and serve 

separate, distinct markets. FSL operates in a 

small localized area in w hich only three thrift 

institution offices are located, of which FSL is 

by far the sm allest in share of total thrift 

deposits held. Consum m ation of the proposed transaction would m erely substitute 

Erie Savings Bank for a relatively small, local 

savings and loan association and would have 

no significant effect on existing com petition 

or any adverse im pact upon the structure of 

thrift institution banking in this relevant m arket.

The possibility that any significant level of 

com petition may develop between the proponents through de novo branching appears 

remote. Erie Savings Bank, governed by a 

state statute which limits such de novo expansion to a single office each year, is 

view ed as an unlikely potential entrant into 

the Fredonia m arket in the foreseeable future. 

The m odest size and limited resources of 

FSL, which has operated from a single office 

since inception, would seem to preclude any 

m eaningful de novo expansion effort on its 

part into areas now served by Erie Savings 

Bank.

The Board of Directors is of the opinion that 

the proposed m erger would not, in any section of the country, substantially lessen com ­

petition, tend to create a m onopoly or in any 

other m anner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. The financial resources of 

both proponents are adequate for purposes 

of this transaction. A potential m anagem ent 

succession problem at FSL would be resolved by Erie Savings Bank’s satisfactory 

m anagem ent adm inistering the affairs of the 

resultant institution whose future prospects 

appear favorable.

Convenience and Needs of the Community

to be Served. Erie Savings Bank’s entry into 

the Fredonia-D unkirk m arket would make 

available a second source of certain thrift 

institution services not now offered by FSL. 

Considerations relating to convenience and 

needs of the com m unity to be served are 

consistent with approval of the application.

A review of available inform ation, including 

the Com m unity Reinvestment Act Statements

of both proponents and other relevant m aterial, disclosed no inconsistencies with the 

purposes of the Act. The resultant institution 

is expected to continue to m eet the credit 

needs of its entire com m unity, consistent with 

its safe and sound operation.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Bank of

Chincoteague, Inc.

C hincoteague, 

Virginia 

(change title to 

Farmers & 

M erchants Bank — 

Eastern Shore)

7,832 1 4

to merge with

Farmers &

Merchants

National Bank in

Onley

Onley, Virginia

38,987 3

Sum mary report by Attorney General, 

August 13, 1979

We have reviewed this proposed transaction and conclude that it would not have a 

significantly adverse effect upon com petition.

Basis for Corporation Approval 

O ctober 1, 1979

Pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, 

an application has been filed on behalf of 

Bank of Chincoteague, Inc., Chincoteague, 

V irginia (“ B O C ” ), an insured State nonm e m b e r b a n k w ith to ta l re s o u rc e s of 

$ 7 ,8 3 2 ,0 0 0 and to ta l IPC d e p o s its of 

$6,444,000, for the C orporation’s consent to 

merge, under its charter, with Farmers & 

M erchants National Bank in Onley, Onley, 

V irginia ("F arm ers B ank” ), with total resources of $38,987,000 and total IPC deposits of $34,267,000, and to establish the 

three offices of Farmers Bank as branches of 

the resultant bank which would bear the title 

"Farm ers & M erchants Bank — Eastern 

Shore” . Incident to the transaction, the main

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106 FEDERAL DEPOSIT INSURANCE CORPORATION

office location of the resultant bank would be 

redesignated to the site of the current main 

office of Farmers Bank.

Competition. BOC operates its sole office 

in the town of C hincoteague (1970 population 

1,852) on C hincoteague Island in northern 

A c c o m a c k C ounty on V irg in ia ’s eastern 

shore. Farmers Bank operates its head office 

at O nley in central A ccom ack County and two 

branches, one in the extrem e southern portion of the county at Belle Haven and one at 

Oak Hall, serving the northern portion of the 

county.

The relevant m arket in which to assess the 

com petitive im pact of the proposed transaction is regarded as the northern portion of 

A ccom ack County within which BOC com ­

petes. A ccom ack County (1970 population 

29,004) is prim arily agriculturally oriented 

with poultry production and processing, vegetables, lumber, tourism , and seafood p ro cessing contributing to the local econom ic 

base. The population is relatively stable with 

only a small decline in evidence between 

1960 and 1970. The county’s 1978 m edian 

household buying level is significantly below 

the com parable state figure. In the northern 

portion of the county, the W allops Island 

Flight Center of the National Aeronautics and 

Space Adm inistration (“ NASA” ) separates 

C hincoteague Island from the bulk of A c ­

com ack County. Transportation through Virg inia’s eastern shore region and A ccom ack 

County is prim arily in a north-south direction 

along the U. S. Route 13 corridor. The town of 

C hincoteague is located approxim ately 9 

miles east of this highway artery, accessible 

only by a single road and causeway passing 

through the NASA center.

The closest office of Farmers Bank to BOC 

is located at Oak Hall in northern A ccom ack 

County approxim ately 10 road miles west of 

C hincoteague. This office’s location near the 

junction of U. S. Route 13 and the direct 

east-west road leading to Chincoteague indicate that there is some existing com petition 

between the two banks. The amount of actual 

direct com petition appears limited, however, 

with only a m odest num ber of deposit and 

loan custom ers at the Oak Hall office being 

drawn from the C hincoteague area. BOC 

prim arily serves the island and town of Chincoteague, a relatively isolated area, while the 

Oak Hall office of Farmers Bank, which is of 

re la tiv e ly m o d e s t size (to ta l d e p o s its 

$5,913,000), serves the northern portion of 

the county along the U. S. Route 13 corridor. 

The relevant m arket is dom inated by the 

presence of a Bank of Virginia office, holding

59.4 percent of the m arket’s IPC deposits, a 

m arket share more than double that which

would be held by the resultant bank, subsequent to the instant m erger proposal.

Virginia statutes perm it de novo branch 

e x p a n sio n by e ith e r of the p ro p o n e n ts 

throughout A ccom ack County. Farmers Bank 

would be unlikely, however, to expand de

novo into the C hincoteague area of A c ­

com ack County now served by BOC and 

another independent com m ercial bank, due 

to the relatively low population density. BOC, 

with its limited resource base, is unlikely to 

expand de novo into more distant areas now 

served by Farmers Bank, having operated as 

a unit bank since 1940 when BOC closed its 

only branch, located north of Oak Hall. The 

loss of some potential for increased future 

com petition between the two banks is not 

regarded as having a significant com petitive 

im pact.

Financial and Managerial Resources; Future Prospects. Financial resources of both 

proponents and of the resultant bank are 

regarded as satisfactory. Consum m ation of 

the proposed transaction will resolve a m anagem ent succession problem at BOC. The 

resultant bank is anticipated to have favorable future prospects.

Convenience and Needs of the Community

to be Served. The resultant bank will offer a 

broader range of com m ercial banking services than presently available at the office of 

BOC. Deposit and loan rates will be restructured to reflect current market conditions. 

C onsiderations relating to convenience and 

needs of the com m unity to be served are 

consistent with approval of the application.

A review of available information, including 

the Com m unity Reinvestment Act Statem ents 

of both proponents and other relevant m aterial, disclosed no inconsistencies with the 

purposes of the Act. The resultant bank is 

expected to continue to m eet the credit 

needs of its entire com m unity, consistent with 

the safe and sound operation of the institution.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

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Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Surety National Bank

Los Angeles (P. O. 

Encino), California 

(change title to 

California Overseas 

Bank)

(convert to State 

charter)

47,973 4 7

to merge with

California Overseas

Capital Co., Inc.

(in organization) 

Los Angeles, 

California

and

California Overseas

Bank

Los Angeles, 

California

81,813 3

Sum mary report by Attorney General, 

Septem ber 19, 1979

We have reviewed this proposed transaction and conclude that it would not have a 

substantial com petitive im pact.

Basis for C orporation Approval 

O ctober 5, 1979

Pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, 

an application has been filed on behalf of 

Surety National Bank, Los Angeles (P.O. Encino), California (‘‘Surety Bank” ) with total 

resources of $47,973,000 and total IPC deposits of $29,633,000, for the C orporation’s 

prior consent to merge, upon Surety B ank’s 

conversion to a State charter, with California 

O verseas Capital Co., Inc., a noninsured 

C alifornia C orporation in organization, and 

to subsequently m erge under the new state 

charter with California Overseas Bank, Los 

Angeles, California (“ C O B” ), with total resources of $81,813,000 and total IPC deposits of $52,143,000. Incident to the proposed transaction, the three offices of COB 

would be established as branches of the 

resultant bank which would bear the title 

‘‘California Overseas B ank” , and the main 

office location of the resultant bank would be 

redesignated to the present main office site 

of COB.

Competition. Surety Bank, headquartered 

in the com m unity of Encino in the San Fernando Valley portion of the city of Los 

Angeles, operates branches in the com m unity of Reseda and in the Civic Center District 

of the city of Los Angeles, and a branch at 

Marina del Rey in southw estern Los Angeles 

County. COB, headquartered in the city of 

Los Angeles, approxim ately 4 miles west of 

the “ dow ntow n” portion of the city, operates 

its three offices in the W ilshire Boulevard 

corridor with branches in the com m unity of 

W estwood and in the city of Beverly Hills. A 

representative office is also operated in Manila, Philippines. California Overseas Capital 

Co., Inc., is a noninsured corporation in organization, which will be utilized as a vehicle 

to effect a corporate reorganization, within 

the fram ew ork of the proposed transaction, 

and which would have no effect on com petition in any relevant area.

Each of the p ro p o n e n ts’ offices serve 

localized m arkets in the highly developed 

urban portions of Los Angeles County. The 

proposed union of the two institutions would 

have its most direct and im m ediate com petitive im pact on those com m unities now served 

by Surety Bank, the sm aller of the two banks 

involved. COB is not represented in any of 

these m arkets with no overlap of service 

areas in evidence. The proponents’ closest 

offices are located approxim ately 4 miles 

apart in a highly congested urban area containing numerous com m ercial banking alternatives. C O B’s offices serve separate, distinct m arkets from those served by Surety 

Bank’s offices and the two banks are not 

regarded as being in direct com petition to 

any significant degree.

In each of the four relevant banking m arkets served by Surety Bank, the institution 

ranks as a relatively ineffective com petitor 

with declining m arket shares. Surety Bank 

holds m arket shares between 0.1 percent 

and 6.6 percent of of the IPC deposits in 

these four m arkets which, in each case, is a 

m arket share significantly sm aller than that 

held by the substantially larger banks represented in these markets. Three of the four 

Surety Bank offices have suffered deposit 

outflows in the two year period June, 1977 to 

June, 1979. The b ank’s three branches, all of 

which were established more than ten years 

ago, have failed to develop a significant 

market penetration and deposit growth in 

their respective markets, in spite of the generally favorable econom ic and growth prospects prevalent in these areas.

COB and Surety Bank rank as the 30th and 

43rd largest com m ercial banks, respectively, 

in share of deposits held in Los Angeles 

County, aggregately holding less than 0.3 

percent of the C ounty’s IPC com m ercial bank

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108 FEDERAL DEPOSIT INSURANCE CORPORATION

deposits. In the State of California, the two 

banks are among the State’s sm allest aggregately holding only a nominal volum e of 

C alifornia’s com m erical bank deposits. Consum m ation of the p ro p o se d tran sa ctio n 

would have little im pact on the level of concentration of banking resources or on the 

structure of com m ercial banking in any relevant area.

C alifornia statutes perm it statew ide de

novo branching and m erger activity, therefore, each proponent has the potential to 

expand into the m arkets now served by the 

o th e r. C o m m e rcia l b a n kin g in the Los 

Angeles County area is dom inated by offices 

of most of the state’s largest com m ercial 

banks. Over 1,200 banking offices have been 

established in the county, with the state’s five 

largest com m ercial banks operating more 

than 800 of these offices.

In such a banking environm ent, the loss of 

some potential for increased levels of com ­

petition to develop between the proponents, 

given their m odest relative size and level of 

resources, is regarded as having little com ­

petitive im pact.

The Board of Directors is of the opinion that 

the proposed m erger would not, in any section of the country, substantially lessen com ­

petition, tend to create a m onopoly or in any 

other m anner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. The financial and managerial 

resources of COB are regarded as satisfactory for purposes of this transaction. Surety 

Bank has experienced earnings problem s 

which would be resolved by union with COB. 

The resultant bank, with the proposed a d d itions to it capital structure, is anticipated to 

have favorable future prospects.

Convenience and Needs of the Community

to be Served. Surety Bank has ceased to 

function as an effective com petitor in the 

m arkets it presently serves. Consumm ation 

of the proposed transaction, while having 

little im pact upon the types and pricing of 

c o m m e rcial banking services offered in 

these com m unities, will provide an additional 

fu ll-se rvice banking alternative at Surety 

Bank’s office locations. Considerations relating to convenience and needs of the com ­

m unity to be served are consistent with a p ­

proval of the application.

A review of available inform ation, including 

the Com munity Reinvestment Act Statem ents 

of the proponents, disclosed no inconsistencies with the purposes of the Act. The resultant bank is expected to continue to meet the 

credit needs of its entire com m unity, consistent with the safe and sound operation of the 

institution.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Central Bank

Oakland, California

642,732 47 58

to merge with

First National Bank of

Fresno

Fresno, California

48,439 5

and

Tahoe National Bank

South Lake Tahoe, 

California

18,657 3

and

Valley Bank, National

Association

Livermore, California

28,645 3

Sum mary report by Attorney General, 

February 9, 1979

The m erging banks are all wholly-owned 

subsidiaries of the same bank holding com ­

pany. As such, the proposed m erger is esse n tially a co rp o ra te reorganization and 

would have no effect on com petition.

Basis for C orporation Approval 

O ctober 15, 1979

C e n tra l B ank, O a k la n d , C a lifo rn ia 

(“ A p p lica n t” ), an insured State nonm em ber 

bank with total resources of $642,732,000 

and total IPC deposits of $511,062,000, has 

applied, pursuant to Section 18(c) and other 

provisions of the Federal Deposit Insurance 

Act, for the C orporation’s prior consent to 

merge, under its charter and title, with: First 

National Bank of Fresno, Fresno, California 

(“ FNB” ), with total resources of $48,439,000 

and total IPC deposits of $36,718,000; Tahoe 

National Bank, South Lake Tahoe, California 

(“ TNB” ), with total resources of $18,657,000 

and total IPC deposits of $14,817,000; and, 

Valley Bank, National Association, Livermore, 

C alifornia (“ Valley B ank” ), with total resources of $28,645,000 and total IPC deposits of $25,305,000. Incident to the transaction, the five offices of FNB, the three offices of TNB, and the three offices of Valley 

Bank would be established as branches of 

the resultant bank.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 109

Competition. Essentially a corporate reorganization, the proposal would provide a 

means by which Central Banking System, 

Inc., Oakland, California, a m ulti-bank holding com pany, may consolidate these four 

ban king su b s id ia rie s into a single nonm em ber bank. At least 90 percent comm on 

control of these four banks has existed for 

som e years, and their proposed m erger 

w ould not affect the structure of com m ercial 

banking or the concentration of banking resources in any relevant area.

The Board of Directors is of the opinion that 

the transaction would not, in any section of 

the country, substantially lessen com petition, 

tend to create a m onopoly, or in any other 

manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. The proponents’ m anagerial 

resources are considered adequate for the 

p u rposes of this proposal. Financial resources of the resultant bank, with the contem plated increase in the capitalization of 

A pplicant would be acceptable, and the resultant bank is anticipated to have favorable 

future prospects.

Convenience and Needs of the Community

to be Served. Services to be offered by the 

resultant bank would not differ m aterially from 

those presently offered by each of the proponents.

A review of available inform ation, including 

the Community Reinvestment Act Statements 

of proponents and other relevant material, 

disclosed no inconsistencies with the purposes of the Act. The resultant bank is expected to continue to meet the credit needs 

of its entire com m unity, consistent with the 

safe and sound operation of the institution.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Southeast First Bank

of Jacksonville

Jacksonville, Florida

46,961 2 4

(change title to 

Southeast Bank of 

Jacksonville)

to merge with

Southeast Bank of

Edgewood

Jacksonville, Florida

13,308 1

and

Southeast First

National Beach

Bank

Jacksonville Beach, 

Florida

46,201 1

Summary report by Attorney General, 

May 11, 1979

The m erging banks are all w holly-ow ned 

subsidiaries of the same bank holding com ­

pany. As such, their proposed m erger is essentially a co rp o ra te reo rg a n iza tio n and 

would have no effect on com petition.

Basis for C orporation Approval 

O ctober 15, 1979

S o u th e a st First B ank of J a c k s o n v ille , 

Jacksonville, Florida (“ A p p lic a n t” ), an insured State n o n m em ber bank (total resources $46,961,000; total IPC d eposits 

$29,472,000), has applied, pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the C orporation’s 

prior consent to m erge with Southeast Bank 

of Edgewood, Jacksonville, Florida, a State 

m em ber bank (total resources $13,308,000; 

total IPC deposits $10,627,000), and Southeast First National Beach Bank, Jacksonville 

Beach, Florida (total resources $46,201,000; 

total IPC d e p o s its $ 3 6 ,4 9 4 ,0 0 0 ). These 

banks would m erge under the charter of 

A pplicant and with the title “ Southeast Bank 

of Jacksonville” . The sole office of each of the 

two banks being acquired would be established as branches of the resultant bank.

Competition. Essentially a corporate reorganization, the proposal would provide a 

means by which Southeast Banking C orporation, Miami, Florida, a bank holding com ­

pany, may consolidate its operations in Duval 

County. The proponents have been under 

com m on control since 1976. The proposed 

m erger would not affect the structure of

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com m ercial banking or the concentration of 

com m ercial banking resources within the relevant market.

In view of the foregoing, the Board of Directors is of the opinion that the proposed 

m erger would not, in any section of the country, substantially lessen com petition, tend to 

create a m onopoly, or in any other m anner be 

in restraint of trade.

Financial and Managerial Resources; Future Prospects. Proponents’ financial and 

m a n a g e ria l re s o u rc e s are c o n s id e re d 

adequate for the purposes of this proposal. 

Financial and m anagerial resources of the 

resultant bank would be satisfactory, and its 

future prospects appear favorable.

Convenience and Needs of the Community

to be Served. Services to be offered in the 

relevant m arket by the resultant bank would 

not differ m aterially from those presently offered by each proponent.

A review of available information, including 

the p ro ponents’ Com m unity Reinvestm ent 

A ct Statements, discloses no inconsistencies 

with the purposes of the Act. The resultant institution is expected to continue to meet the 

credit needs of its entire com m unity, consistent with the safe and sound operation of the 

institution.

On the basis of the foregoing information, 

the Board of Directors has concluded that 

approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

American Beach

Boulevard Bank

Jacksonville, Florida

19,994 3 5

(change title to 

Am erican Bank)

to merge with

American Arlington

Bank

Jacksonville, Florida

16,184 1

and

American Mandarin

Bank

Jacksonville, Florida

14,040 1

Sum mary report by Attorney General, 

June 27, 1979

The m erging banks are all w holly-owned 

subsidiaries of the same bank holding com ­

pany. As such, their proposed m erger is

essentially a corporate reorganization and 

would have no effect on com petition.

Basis for C orporation A pproval 

O ctober 22, 1979

A m e ric a n B e a ch B o u le v a rd B ank, 

Jacksonville, Florida (“ A p p lic a n t” ), an insured State nonm em ber bank with total resources of $19,994,000 and total IPC deposits of $17,512,000, has applied pursuant 

to Section 18(c) and other provisions of the 

Federal Deposit Insurance Act, for the Corporation’s prior consent to m erge with Am erican A rlington Bank, Jacksonville, Florida, an 

insured State nonm em ber bank with total 

resources of $16,184,000 and total IPC deposits of $14,308,000, and Am erican Mandarin Bank, Jacksonville, Florida, an insured 

State nonm em ber bank with total resources 

of $14,040,000 and total IPC deposits of 

$12,453,000. These banks w ould m erge 

under the charter of A pplicant and with the 

title “ Am erican Bank” . The sole office of each 

of the two banks being acquired would be 

established as branches of the resultant 

bank. The main office location will be redesignated to the present site of Am erican Mandarin Bank.

Competition. Essentially a corporate reorganization, the proposal would provide a 

means by which Am erican Banks of Florida, 

Inc., Jacksonville, Florida, a bank holding 

com pany, may consolidate three of its banking subsidiaries in the city of Jacksonville. 

The proponents have been com m only controlled since 1974. The proposed m erger 

w ould not affect the structure of com m ercial 

banking or the concentration of banking resources within the relevant market.

In view of the foregoing, the Board of 

D irectors is of the opinion that the proposed 

m erger would not, in any section of the country, substantially lessen com petition, tend to 

create a monopoly, or in any other manner be 

in restraint of trade.

Financial and Managerial Resources; Future Prospects. Proponents’ financial and 

m a n a g e ria l re s o u rc e s are c o n s id e re d 

adequate for the purposes of this proposal, 

and the future prospects of the resultant bank 

appear favorable.

Convenience and Needs of the Community

to be Served. Services to be offered in the 

relevant m arket by the resultant bank would 

not differ m aterially from those presently offered by each proponent.

A review of available inform ation, including 

the p roponents’ C om m unity Reinvestment 

A ct Statem ents, discloses no inconsistencies 

with the purposes of the Act. The resultant 

institution is expected to continue to meet the

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credit needs of its entire com m unity, consistent with the safe and sound operation of the 

institution.

On the basis of the foregoing information, 

the Board of Directors has concluded that 

approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Peoples Bank of

Hancock

Hancock, M aryland

11,726 1 2

to merge with

Antietam Bank

Company

Hagerstown,

Maryland

6,405 1

Sum mary report by Attorney General, 

D ecem ber 7, 1979

We have reviewed this proposed transaction and conclude that it would not have any 

significant effect upon com petition.

Basis for Corporation Approval 

O ctober 29, 1979

Pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, 

an application has been filed on behalf of the 

Peoples Bank of H ancock, Hancock, Maryland (“ Peoples B ank” ), an insured State 

nonm em ber bank with total resources of 

$ 1 1 ,7 2 6 ,0 0 0 and to ta l IPC d e p o s its of 

$10,462,000, for the C orporation’s prior co n ­

sent to m erge with Antietam Bank Com pany, 

Hagerstown, M aryland (“ Antietam Bank”), an 

insured State nonm em ber bank with total 

resources of $6,405,000 and total IPC deposits of $4,313,000. Incident to the proposed transaction, the sole office of Antietam 

Bank would be established as a branch of the 

resultant bank.

Competition. Peoples Bank operates its 

sole office in the city of H ancock (1970 

p opulation 1,832) located in the narrow 

panhandle of western W ashington County, 

M aryland, near the Pennsylvania and West 

Virginia State borders. Peop'es Bank is affilia te d w ith S u b u rb a n B a n c o rp o ra tio n , 

Hyattsville, Maryland, a m ulti-bank holding 

com pany controlling three com m ercial banks 

in M aryland with aggregate deposits in excess of $1 billion. Antietam Bank operates its 

sole office in the city of Hagerstown (1970

population 26,543) in eastern W ashington 

County.

The relevant m arket in which to assess the 

com petitive im pact of the proposed transaction is regarded as an area within approxim a te ly 10 road m ile s of th e c ity of 

Hagerstown in eastern W ashington County. 

W a s h in g to n C o u n ty (1 9 7 0 p o p u la tio n 

103,289, an increase of 13.8 percent from 

1960) is prim arily agriculturally oriented with 

m anufacturing activity centered in the vicinity 

of Hagerstown. The county’s 1978 m edian 

household buying level of $13,282 is 19 percent below the com parable state figure.

The proponents’ offices are located more 

than 25 road miles apart with no overlap of 

service areas in evidence and with numerous 

com m ercial banking alternatives located in 

the intervening area. Peoples Bank is located 

in the more m ountainous portion of western 

W ashington County and while some residents of the H ancock area com m ute to the 

Hagerstown area for em ploym ent, such interaction between the two com m unities is 

limited and of little com petitive significance 

to the pro p o se d tran sa ctio n . As neither 

Peoples Bank nor any affiliate of Suburban 

B a n c o rp o ra tio n is re p re s e n te d in the 

Hagerstown market, consum m ation of the 

proposed transaction would have no significant effect on existing com petition.

In the relevant market, 8 com m ercial banks 

operate 34 offices. Antietam Bank has failed 

to establish a significant m arket penetration 

and holds less than $4 million in IPC deposits 

representing only a 1.4 percent share of the 

m arket’s total IPC deposit base. The m arket’s 

three largest banks, m easured by share of 

deposits held, aggregately control more than 

75 percent of the m arket’s IPC deposits. 

Represented in this m arket are several of the 

state’s largest banking organizations, providing intense com petition. In such a com ­

petitive banking environm ent, the acquisition 

of Antietam Bank by an affiliate of Suburban 

Bancorporation would have no adverse effect on the level of deposit concentration or 

on the structure of com m ercial banking in the 

relevant market.

Suburban B ancorporation is the fourth 

largest banking organization in Maryland, 

holding 9.5 percent of the state’s total com ­

m ercial bank deposits. A cquisition of A ntietam Bank, which holds less than 0.1 percent 

of such funds, would have no material im pact 

upon the level of concentration of com m ercial banking resources in the state.

Maryland state statutes perm it statew ide 

m erger and de novo branching activity, subject to certain minimum capitalization requirem ents, and therefore, each proponent

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has the potential to expand into areas now 

served by the other. Antietam Bank lacks the 

resources and experience to m ount a major 

expansion effort, in the foreseeable future, 

into distant areas presently served by Suburban B a n co rpo ra tion a ffiliates. S uburban 

B a n c o rp o ra tio n , w h ile p o s s e s s in g the 

n e cessary resources and e xp e rie n ce to 

branch de novo into the Hagerstown market, 

would find such entry on a de novo basis 

difficult in light of the num ber of relatively 

large banking organizations already well established in that market. The loss of some 

limited potential for future com petition to develop between the proponents is regarded as 

having little com petitive im pact.

The Board of Directors is of the opinion that 

the proposed transaction would not, in any 

section of the country, substantially lessen 

com petition, tend to create a m onopoly or in 

any other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Considerations relating to 

financial and m anagerial resources have 

been satisfactorily resolved and the resultant 

bank is anticipated to have favorable future 

prospects.

Convenience and Needs of the Community

to be Served. The resultant bank would be 

able to offer a broader range of com m ercial 

banking services than presently available at 

A ntietam Bank. W hile such co m m e rcial 

b a n k in g fu n c tio n s are a v a ila b le in the 

Hagerstown com m unity at offices of other 

major regional and statewide banking organizations represented there, consum m ation of the proposed transaction will bring an 

additional alternate source of such services 

to the com m unity. Considerations relating to 

the convenience and needs of the com m unity 

to be served are consistent with approval of 

the application.

A review of available information, including 

the Com munity Reinvestment Act Statem ents 

of the proponents, disclosed no inconsistencies with the purposes of the Act. The resultant bank is expected to continue to meet the 

credit needs of its entire comm unity, consistent with the safe and sound operation of the 

institution.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(m thousands 

of dollars)

Banking Offices 

in Operation

Before After

First State Bank of

Oregon

Milwaukie, Oregon

371,679 29 31

to merge with

The Community Bank

Lake Oswego, 

Oregon

20,838 2

and

First State Interim

Bank of Oregon

(In organization) 

Milwaukie, Oregon i

Sum mary report by Attorney General, 

June 27, 1979

The proposed mergers are part of a plan 

through which Hood River County Bank and 

First State Bank of Oregon would becom e 

subsidiaries of Pacwest Bancorp, a bank 

holding com pany. The instant mergers, however, would merely com bine existing banks 

with non-operating institutions; as such, and 

w ithout regard to the acquisition of the surviving banks by Pacw est Bancorp, they 

would have no effect on com petition.

Basis for Corporation Approval 

O ctober 29, 1979

Pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, 

an application has been filed on behalf of 

First State Bank of Oregon, Milwaukie, O regon (“ First Bank” ), an insured State nonm e m b e r b a n k w ith to ta l re s o u rc e s of 

$371,679,000 and total IPC de p osits of 

$279,102,000, for the C orporation’s consent 

to merge, under its charter and title, with The 

C om m unity Bank, Lake O swego, Oregon 

(“ Com m unity Bank” ), with total resources of 

$ 2 0 ,8 3 8 ,0 0 0 and total IPC d e p o s its of 

$17,162,000, and with First State Interim 

Bank of Oregon, Milwaukie, O regon (“ First 

Interim Bank” ), a proposed new bank in 

organization, and for consent to establish the 

two offices of Com munity Bank as branches 

of the resultant bank. The proposal is part of 

a series of transactions w hereby a m ultibank 

holding com pany, Pacwest Bancorp, Milwaukie, Oregon, will be form ed to acquire all 

of the outstanding shares of stock of the 

resultant bank in this proposal plus two other 

com m erical banks located in Hood River and 

M cM innville, Oregon.

Competition. First Bank, headquartered in

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the city of Milwaukie in suburban Portland, 

operates 28 offices in the three counties of 

the P ortland (O regon) m etropolitan area 

(1970 population 880,675) and a single de

novo branch in Salem, approxim ately 45 

miles south of Portland. Com m unity Bank is 

headquartered in the C lackam as County 

portion of the city of Lake O swego and operates a de novo b ranch (e sta b lish e d in 

January, 1976) at the Portland State University cam pus in the city of Portland, approxim ately 6 miles north of its head office. Com ­

m unity Bank’s only other de novo branch, in 

O regon City, approxim ately 5 miles southeast of Lake O swego and 6 miles south of 

Milwaukie, was discontinued during 1976. 

First State Interim Bank of Oregon, Milwaukie, 

O regon, is a nonoperating bank in organization which will be utilized as a vehicle to 

effect a corporate reorganization, within the 

fram ew ork of the proposal, and which would 

have no effect on com petition in any relevant 

area.

The city of Portland (1970 p o pulation 

382,619) is the chief industrial, com m ercial 

and financial center for much of the state and 

the C olum bia River Valley. The city, while 

located principally in Multnomah County, has 

grown to encom pass portions of adjoining 

Clackam as and W ahington Counties. The city 

of M ilwaukie (t9 7 0 population 16,379) adjoins Portland on the south and straddles the 

C lackam as-M ultnom ah County line. The city 

of Lake O sw ego (1970 population 14,573) 

adjoins both M ilwaukie and Portland and is 

actually located in all three counties. Both 

M ilwaukie and Lake O sw ego are econom ically hom ogeneous with Portland and its environs and have shared in the rapid growth 

and developm ent prevalent throughout most 

of the m etropolitan area. The relevant market 

in w hich to asses the com petitive im pact of 

the proposed transaction is, therefore, reg arded as the contiguous counties of C lackamas, Multnomah and W ashington, being 

g e n era lly co term inous with the Portland 

m etropolitan area in northwestern Oregon.

Com m unity Bank’s Viking O ffice at the 

Portland State University cam pus is located 

approxim ately Vz mile from the closest office 

of First Bank and within 1 mile of three of First 

Bank’s offices serving the“ dow ntow n” business section of Portland. As C om m unity 

B ank’s Viking O ffice (total IPC deposits 

$2,411,000) caters principally to a cliental 

evolving from or associated with the university, there appears to be little actual direct 

com petition with the offices of First Bank 

serving the com m ercial and financial core of 

Portland. C om m unity B ank’s head office 

serving Lake O swego is not directly accessible from offices of First Bank in the adjoining 

city of Milwaukie due to the natural barrier 

form ed by the W illamette River, and serves a 

limited area in which First Bank is not directly 

represented. The elim ination of some existing 

com petition between First Bank and Com ­

m unity Bank, upon consum m ation of the 

proposed transaction, would have no significant com petitive im pact.

O regon statutes perm it statew ide de novo

branching, however, a home office protection 

pro visio n p ro h ib its such exp a nsio n into 

com m unities of less than 50,000 population 

containing a bank’s head office. First Bank is, 

therefore, precluded from de nove entry into 

the city of Lake O sw ego w hich is now served 

by Com m unity Bank. Com m unity Bank, with 

its relatively m odest resource base, has little 

potential to expand into other portions of the 

Portland m etropolitan area now served by 

First Bank, to any m eaningful degree, in light 

of the in te nse c o m p e titiv e e n viro n m e n t 

throughout the area. Com m unity Bank’s attem pts at de novo branch expansion have 

met with only limited success as evidenced 

by the discontinuance of one office and the 

failure of the Viking O ffice to establish a 

significant m arket penetration in its 31/2 years 

of operation. Consum m ation of the proposed 

transaction w ould elim inate little m aterial 

potential for increased com petition between 

the proponents in the foreseeable future.

A total of 18 insured com m ercial banks 

operate 213 offices in the relevant market. 

First Bank, with an 8.6 percent share of the 

m arket’s insured com m ercial bank IPC deposits, ranks as the third largest bank, a 

ranking that would remain unchanged upon 

the acquisition of Com m unity Bank’s nominal 

0.47 percent m arket share. The m arket is 

regarded as highly concentrated with the 

state’s two largest com m ercial banks, in an 

undisputed dom inant position, aggregately 

controlling over 75 percent of the m arket’s 

IPC deposit base. In light of the concentrated 

nature of the existing banking environm ent, 

the proposed transaction would have no a d ­

verse effect upon the level of concentration of 

banking resources or upon the structure of 

com m ercial banking in this market.

Pacwest Bancorp, upon form ation as proposed, w ould becom e the state’s fourth 

largest banking organization, holding approxim ately 4.35 p ercent of the insured 

com m ercial bank deposits in O regon, an 

increase of only 0.6 percent from the share 

now held by First Bank. Com m unity Bank’s 

contribution to this increase represents only a 

0.2 percent share of the state’s total deposits. 

As in the Portland market, the state’s two 

largest banking organizations dom inate the

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com m ercial banking industry, by a w ide 

m argin, aggregately holding almost 70 percent of O regon’s insured com m ercial bank 

deposits. Neither the proposed m erger of 

First Bank and Com m unity Bank nor the related transaction by Pacwest Bancorp to acq u ire u n it b a n k s in H ood R iver and 

M cM innville would have any significant adverse im pact upon the structure of com m ercial banking or the level of concentration of 

banking resources in Oregon.

The Board of Directors is of the opinion that 

the proposed transaction would not, in any 

section of the country, substantially lessen 

com petition, tend to create a m onopoly, or in 

any other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. The financial and m anagerial 

resources of the proponents are regarded as 

satisfactory and the resultant bank is anticipated to have favorable future prospects.

Convenience and Needs of the Community

to Be Served. The resultant bank will offer a 

broader range of com m ercial banking services than presently available at offices of 

Com m unity Bank. C onsiderations relating to 

the convenience and needs of the com m unity 

to be served are consistent with approval of 

the application.

A review of available information, including 

the Com m unity Reinvestment Act Statem ents 

of the (operating) proponents and other relevant material, disclosed no inconsistencies 

with the purposes of the Act. The resultant 

bank is expected to continue to meet the 

credit needs of its entire comm unity, consistent with the safe and sound operation of the 

bank.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

First-Citizens Bank

and Trust

Company of South

Carolina

Colum bia, South 

Carolina

286,812 49 50

to merge with

The Bank of Trenton

Trenton, South 

Carolina

4,995 1

Summary report by Attorney General, 

Novem ber 17, 1978

We have reviewed this proposed transaction and conclude that it would not have a 

substantial com petitve im pact.

Basis for Corporation Approval 

O ctober 29, 1979

First-Citizens Bank and Trust Com pany of 

South Carolina, Columbia, South Carolina 

(“ F irst-C itize n s” ), an insured State nonm e m b e r b a n k w ith to ta l re s o u rc e s of 

$ 286,812,000 and total IPC d e p osits of 

$234,298,000, has applied, pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the C orporation’s 

consent to merge, under its charter and title, 

with The Bank of Trenton, Trenton, South 

Carolina (“ Other Bank” ), with total resources 

of $4,995,000, and total IPC deposits of 

$3,488,000. Incident to the proposed transaction the sole office of Other Bank would be 

established as a branch of First-Citizens.

Competition. First-Citizens, based in Columbia, operates 49 com m ercial banking offices in 15 counties of South Carolina, Since 

1968, the bank has been involved in eleven 

m erger-type transactions, acquiring com ­

m ercial banks in a num ber of locations in the 

state. Other Bank operates its sole office in 

the town of Trenton (estim ated population of 

less than 400) located in southern Edgefield 

County, approxim ately 60 miles southw est of 

C olum bia and 23 road miles north of Augusta, Georgia.

The relevant market in which to assess the 

com petitive im pact of the proposed transaction is regarded as the area within an approxim ate 15 road-m ile radius of Trenton 

which includes m ost of Edgefield County and 

a d jo in in g portions of A iken and S aluda 

C ounties in the southw estern part of the 

state. This area is relatively rural, with livestock, crops and lum ber-related activites the 

predom inant econom ic pursuits. The textile 

and apparel industry has historically provided a nonagricultural em ploym ent alternative. The city of Aiken (1970 population 

13,436), located approxim ately 14 road miles 

southeast of Trenton, serves as a focal point 

for com m ercial, retail and m anufacturing activity.

The proponents are not engaged in any 

material volum e of direct com petition as the 

nearest office of First-Citizens to Trenton is 

located at Belvedere in southw estern Aiken 

County, a distance of approxim ately 18 miles 

from Other Bank. This Belvedere O ffice and 

two other branches of First-Citizens in Aiken 

C ounty serve a s e p a ra te m arket w hich

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parallels the Savannah River (South Carolina 

— G eorgia border) between the Augusta 

(G eorgia) area and the Savannah River Plant, 

a major U. S. G overnm ent installation. There 

is no overlap in service areas, and the proposed transaction would have no significant 

effect on existing com petition between the 

two banks.

In the relevant m arket five com m ercial 

banks operate 16 offices. Other Bank, holding less than $4 m illion in IPC deposits, is the 

m arket’s sm allest com m ercial bank. Each of 

the other four banks represented in this m arket rank am ong the state’s ten largest com ­

m ercial banking organizations. The m arket’s 

two largest banks, m easured in shares of 

deposits held, aggregately control more than 

73 percent of the m arket’s IPC deposit base, 

while Other Bank holds only a m odest 4.2 

percent share. Consum m ation of the proposed transaction would substitute FirstCitizens for Other Bank and would have no 

adverse im pact on the structure of com m ercial banking in the relevant market.

First-Citizens ranks as South C arolina’s 

sixth largest com m ercial bank, holding 4.8 

percent of the state’s com m ercial bank deposits. The acquisition of Other Bank, one of 

the state’s sm allest com m ercial banks, with 

less than a 0.1 percent share of the state’s 

com m ercial bank deposits, would have no 

effect on First-C itizens’ ranking in the state. 

This m odest increase is not regarded as 

having any material im pact upon the level of 

concentration of banking resources or upon 

the structure of com m ercial banking in South 

Carolina.

South Carolina statutes perm it statewide 

m erger and de novo branching activity, subject to certain minimum capitalization requirem ents, and each proponent, therefore, 

has the potential to expand into the area now 

served by the other. Other Bank, which has 

operated as a unit bank since its establishment in 1905, lacks the necessary level of 

resources to mount any meaningful expansion effort into areas now served by FirstC itizens in the foreseeable future. W hile 

First-C itizens’ expansion into the Trenton 

m arket would be perm itted by state statute, 

the acquisition of Other Bank, with its m odest 

volum e of deposits and market penetration 

after alm ost 75 years of operation, is regarded as having little com petitive im pact.

The Board of Directors is of the opinion that 

the proposed transaction would not, in any 

section of the country, substantially lessen 

com petition, tend to create a m onopoly or in 

any other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. C onsiderations relating to

financial and m anagerial resources have 

been satisfactorily resolved. The reslutant 

bank, with the proposed addition to its capital 

structure, is anticipated to have favorable 

future prospects.

Convenience and Needs of the Community

to be Served. First-Citizens will offer a greater 

range of com m ercial banking services than 

presently available at Other Bank. C onsiderations relating to convenience and needs of 

the com m unity to be served are consistent 

with approval of the application.

A review of available inform ation, including 

the Com m unity Reinvestment A ct Statements 

of the two proponents, disclosed no inconsistencies with the purposes of the Act. The 

resultant bank is expected to continue to 

meet the credit needs of its entire comm unity, 

consistent with the safe and sound operation 

of the bank.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Barnett Bank of

Delray Beach

Delray Beach, 

Florida

(change title to 

Barnett Bank of Palm 

Beach County)

97,040 4 9

to merge with

Barnett Bank of Palm

Beach County

West Palm Beach, 

Florida

85,396 5

Summary of report by Attorney General, 

July 19, 1979

The m erging banks are both w holly-ow ned 

subsidiaries of the same bank holding com ­

pany. As such, their proposed m erger is 

essentially a corporate reorganization and 

would have no effect on com petition.

Basis for Corporation A pproval 

N ovem ber 13, 1979

B arnett Bank of D elray Beach, D elray 

Beach, Florida (“ A p p lic a n t” ), an insured 

State nonm em ber bank with total resources 

of $97,040,000 and total IPC deposits of

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$82,662,000, has applied pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the C orporation’s 

prior consent to m erge with Barnett Bank of 

Palm Beach County, W est Palm Beach, 

Florida (“ O ther B ank” ), an insured State 

nonm em ber bank with total resources of 

$ 8 5 ,3 9 6 ,0 0 0 and total IPC d e p o s its of 

$66,778,000. These banks w ould m erge 

under the charter of A pplicant and with the 

title of Other Bank. The five offices of Other 

Bank would be established as branches of 

the resultant bank.

Competition. Essentially a corporate reorganization, the proposal would provide a 

means by which Barnett Banks of Florida, 

Inc., Ja ckso n ville , Florida, a m ulti-b a nk 

holding com pany, may consolidate its operations in Palm Beach County, Florida. The 

proponents have been under com m on control since 1973. The proposed m erger would 

not affect the structure of com m ercial banking or the concentration of banking resources 

within the relevant market.

In view of the foregoing, the Board of 

Directors is of the opinion that the proposed 

m erger would not, in any section of the country, substantially lessen com petition, tend to 

create a m onopoly, or in any other manner be 

in restraint of trade.

Financial and Managerial Resources; Future Prospects. Proponents’ financial and 

m a n a g e ria l re s o u rc e s are c o n s id e re d 

adequate for the purposes of this proposal. 

Financial and m anagerial resources of the 

resultant bank would be satisfactory, and its 

future prospects appear favorable.

Convenience and Needs of the Community

to be Served. Services to be offered in the 

relevant m arket by the resultant bank would 

not differ m aterially from those presently offered by each proponent.

A review of available information, including 

the Com m unity Reinvestment Act Statements 

of the proponents, discloses no inconsistencies with the purposes of the Act. The resultant institution is expected to continue to 

meet the credit needs of its entire com m unity, 

consistent with the safe and sound operation 

of the institution.

On the basis of the foregoing information, 

the Board of Directors has concluded that 

approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

The Firestone Bank

Akron, Ohio

378,301 16 18

to merge with

The Firestone Bank

of Wadsworth

W adsworth, Ohio

11,391 2

Sum mary report by Attorney General, 

Septem ber 19, 1979

The m erging banks are both wholly-owned 

subsidiaries of the same bank holding com ­

pany. As such, their proposed m erger is 

essentially a corporate reorganization and 

would have no effect on com petition.

Basis for C orporation Approval 

N ovem ber 13, 1979

The Firestone Bank, Akron, Ohio (“ A p p licant” ), an insured State nonm em ber bank with 

total resources of $378,301,000 and total IPC 

deposits of $280,778,000, has applied pursuant to Section 18(c) and other provisions of 

the Federal Deposit Insurance Act, for the 

C orporation’s prior consent to m erge with 

The F ire s to n e B ank of W a d s w o rth , 

W adsworth, Ohio (“ Other Bank” ), an insured 

State nonm em ber bank with total resources 

of $11,391,000 and total IPC deposits of 

$7,968,000. These banks would m erge under 

the charter and with the title of A pplicant. The 

two offices of Other Bank would be established as branches of the resultant bank.

Competition. Essentially a corporate reorganization, the proposal would provide a 

means by which Firestone Bancorp., Inc., 

Akron, Ohio, a bank holding com pany controlling these two banks only, may consolidate its operations. The proponents have 

been under com m on control since 1973. The 

proposed m erger would not in any section of 

the country, substantially lessen com petition, 

tend to create a m onopoly, or in any other 

manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Proponents’ financial and 

m a n a g e ria l re s o u rc e s are c o n s id e re d 

adequate for the purposes of this proposal. 

Financial and m anagerial resources of the 

resultant bank would be satisfactory, and its 

future prospects appear favorable.

Convenience and Needs of the Community

to be Served. Services to be offered in the 

relevant m arket by the resultant bank would 

not differ m aterially from those presently offered by each proponent.

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A review of available inform ation, including 

the C om m unity Reinvestment Act Statem ents 

of the proponents, discloses no inconsistencies with the purposes of the Act. The resultant institution is expected to continue to 

m eet the cred it needs of its entire com m unity, 

consistent with the safe and sound operation 

of the institution.

On the basis of the foregoing inform ation, 

the Board of Directors has concluded that 

approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Heritage Bank

Anaheim, California

74,617 2 5

to merge with

Irvine National Bank

Irvine, California

28,421 3

Sum m ary report by Attorney General, 

D ecem ber 7, 1979

We have reviewed this proposed transaction and conclude that it would not have an 

adverse effect upon com petition.

Basis for C orporation Approval 

Novem ber 26, 1979

Heritage Bank, Anaheim , California, an insured State nonm em ber bank with total resources of $74,617,000 and total IPC deposits of $65,217,000, has applied pursuant 

to Section 18(c) and other provisions of the 

Federal D eposit Insurance Act, for the Corporation’s consent to m erge, under its charter and title, with Irvine National Bank, Irvine, 

C alifornia (“ IN B” ) with total resources of 

$ 2 8 ,4 2 1 ,0 0 0 and to ta l IPC d e p o s its of 

$22,753,000. Incident to the proposed transaction the three offices of INB would be 

established as branches of the resident 

bank.

Competition. Heritage Bank, established in 

August, 1975, is headquartered in the city of 

A naheim in the north w e ste rn portion of 

O range County, California approxim ately 25 

road miles southeast of the central business 

d istrict of the city of Los Angeles. The bank 

established a branch in April, 1978 in the 

eastern portion of the city of Santa Ana, 

approxim ately 10 road miles southeast of 

Anaheim , and has received regulatory approval to establish a de novo branch office in 

the city of Costa Mesa approxim ately 19 road

miles south of Anaheim . INB, established in 

A ugust , 1973, is headquarted in the rapidly 

developing com m unity of Irvine at a site near 

the O range County A irport in Coastal O range 

County. A branch in the newly developed 

W oodbridge section of Irvine was established in Novem ber, 1978 approxim ately 5 

road miles east of the main office and a 

branch was opened in Septem ber, 1979 at 

N ew port Beach approxim ately 6 road miles 

southw est of the main o ffic e .1

The relevant m arket in w hich to assess the 

com petitive im pact of the proposed transaction is the area in w hich INB presently com ­

petes which includes the com m unity of Irvine 

and the surrounding cities of Santa Ana, 

Costa Mesa and New port Beach, plus the 

coastal com m u n ities of the B alboa and 

Corona del Mar. This market, containing a 

1970 population of approxim ately 300,000, is 

experiencing rapid developm ent with a significant expansion in population as well as 

co m m e rc ia l and in d u s tria l a c tiv ity . The 

O range County A irport, located near the 

center of the relevant market, is reported to 

be am ong the nation’s busiest, as m easured 

by total aircraft traffic, and serves as a focal 

point for new developm ent. The m arket’s 

residential base is com posed of relatively 

affluent professionals with m edian household 

buying levels estim ated to be significantly 

higher than in neighboring areas.

The proponents’ closest offices are located 

approxim ately 8 road miles apart and Heritage Bank's approved, but unopened office 

to be located in Costa Mesa will be within 5 

miles of two of INB’s offices. This proxim ity of 

offices w ould indicate that the two banks are 

in direct com petition in the relevant market, 

and this existing com petition would be elim inated by consum m ation of the proposed 

transaction. Similarly, as California statutes 

p e rm it s ta te w id e m e rg e r and de novo

branching activity, the proposal would preclude the potential for increased levels of 

com petition to develop between them in this 

m arket and w ould foreclose the potential for 

future com petition which could result from an

1 Principals of Heritage Bank acquired effective stock 

control of INB in July 1979, and the two banks have 

been operated under common management since that 

time. Factors relating to this acquisition have been 

subject to evaluation by the Office of the Comptroller of 

the Currency pursuant to The Change in Bank Control 

Act of 1978 (12 U.S.C. 1817(j). The Bank Merger Act 

(12 U.S.C. 1828(c)), pursuant to which the instant 

application has been filed, specifically requires the 

consideration of statutory factors enumerated therein, 

therefore, the Board of Directors has disregarded this 

fact of common control in its analysis of the competitive 

impact of the proposed merger transaction.

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expansion by either proponent into other 

geogra p h ic areas. This market, however, is 

already highly developed and urbanized, 

c o n ta in in g n u m e ro u s o ffic e s of la rg e 

statew ide banking organizations. O ffices of 

several of C alifornia’s largest com m ercial 

banks are located in close proxim ity to the 

site of each of the proponents’ offices. In this 

light, the loss of some existing and potential 

com petition between the two banks, as a 

consequence of the proposal, is regarded as 

having little com petitive im pact.

In the relevant m arket a total of 33 insured 

com m ercial banks operate 114 banking offices. INB, holding 1.0 percent of the m arket’s IPC deposits, ranks as its 18th largest 

com m ercial bank while H eritage Bank, with a 

nominal 0.5 percent share of such funds, 

ranks as the 25th largest bank in the market. 

A total of ten independent banks, including 

INB, have been chartered in the relevant 

m arket since 1970. INB, however, has failed 

to achieve the deposit growth enjoyed by 

most of the banks in this market and experienced a substantial decline in m arket share 

held in the period June, 1978 to June, 1979. 

Com m ercial banking in the relevant m arket is 

d o m inated by the p re se n ce of m ost of 

C alifornia’s largest com m ercial banking organizatio n s w ith the s ta te ’s five largest 

banks, as m easured by total deposits held, 

ranking as the five largest banks in the relevant market, aggregately holding over 60 

percent of the m arket’s IPC deposits. In such 

a com petitive environm ent, the proposal is 

regarded as having no significant effect on 

the level of concentration of banking resources or upon the structure of com m ercial 

banking in any relevant area.

The Board of Directors is of the opinion that 

the proposed transaction would not, in any 

section of the country, substantially lessen 

com petition, tend to create a m onopoly or in 

any other m anner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. C onsiderations relating to the 

financial and m anagerial resources of Heritage Bank and INB have been satisfactorily 

resolved and the resultant bank is anticipated to have favorable future prospects.

Convenience and Needs of the Community

to be Served. The proposed transaction is 

not expected to have any significant im pact 

upon the level and pricing of com m ercial 

banking services in the com m unity served by 

either proponent as an extensive array of 

such services is available at offices of relatively large statew ide banking organizations 

w hich are heavily represented in these areas. 

The resultant bank is, however, expected to 

com pete more aggressively than INB has in

recent periods, providing the custom ers of 

the local com m unity with an effective a d d itional source of such com m ercial banking 

services. Considerations relating to the convenience and needs of the com m unity to be 

served are consistent with approval of the 

application.

A review of available inform ation, including 

the Com m unity Reinvestment A ct Statements 

of the two banks, disclosed no inconsistencies with the purposes of the Act. The resultant institution is expected to continue to 

meet the credit needs of its entire comm unity, 

consistent with the safe and sound operation 

of the bank.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is w arranted

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

American Bank of

Hollywood

Hollywood, Florida

21,567 1 2

to purchase the assets and

assume the deposit liabilities

of

Pembroke Park

Branch —

American Bank of

Hallandale

Pem broke Park 

(P. O. Hallandale), 

Florida

10,000* 1

* Total deposits of office to be transferred by American 

Bank of Hallandale. Assets not reported by office.

Sum mary report by Attorney General, 

May 22, 1979

We have reviewed this proposed transaction and conclude that it would not have a 

substantial com petitive im pact.

Basis for C orporation Approval 

N ovem ber 26, 1979

Am erican Bank of Hollywood, Hollywood, 

Florida (“ Hollywood Bank” ), an insured State 

nonm em ber bank with total resources of 

$ 2 1 ,5 6 7 ,0 0 0 and total IPC d e p o s its of 

$19,128,000, has applied, pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the C orporation’s 

prior consent to purchase certain assets of 

and assume the liability to pay certain deDigitized for FRASER 

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posits m ade in the Pem broke Park office of 

A m erican Bank of H allandale, Pem broke 

Park (P.O. Hallandale), Florida (“ Hallandale 

B ank” ). The total deposits to be assumed 

aggregate approxim ately $10,000,000. A like 

am ount of assets would also be acquired, 

including the Pem broke Park office which 

would be established as a branch of Hollywood Bank, increasing to two the num ber of 

banking offices operated.

Hallandale Bank, with total resources of 

$ 1 8 ,1 9 0 ,0 0 0 and total IPC d e p o s its of 

$15,517,000, was established in 1974 as an 

affiliate of Hollywood Bank (due to comm on 

ownership and interlocking directors). In addition to its main office, it also operates a 

branch in C ooper City and one in Plantation, 

Florida. In a separate application filed in 

conjunction with this application, Hallandale 

Bank requested, and received, perm ission to 

redesignate its main office (Pembroke Park 

office) as a branch and redesignate its 

Cooper City office as its main office.

Competition. All four banking offices of the 

proponents are located in Broward County, 

Florida. Within this county there are currently 

129 offices of 57 com m ercial banks. Hollywood Bank is ranked as the twenty-sixth 

largest in term s of com m ercial bank IPC 

deposits, controlling 0.7 percent of such deposits. H allandale Bank is ranked as twentyninth largest with only 0.5 percent of such 

deposits. In view of the com m on ownership 

that has existed since the form ation of Hallandale Bank, as well as the nominal market 

shares held by the two institutions, this transaction is seen to have no material effect on 

existing com petition in this area or on the 

structure of com m ercial banking.

As part of the agreem ent between the 

proponents, some of the com m on owners of 

the two banks would be divided and the 

m ajority stockholders would be split into two 

groups, each controlling one of the banks. 

This should enhance the prospects for increased future com petition to develop between the proponents.

Based on the foregoing, the Board of Directors is of the opinion that the proposed 

transaction would not, in any section of the 

country, substantially lessen com petition, 

tend to create a m onopoly, or in any other 

m anner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. With the contem plated a d d ition to its capital structure, the financial and 

m anagerial resources of H ollywood Bank 

appear sufficient to support the acquisition of 

this branch, and the resultant bank is anticipated to have favorable future prospects.

Convenience and Needs of the Community

to be Served. Both banks involved in this 

transaction have been operated as affiliates 

with the same board of directors and president. Over the years they have developed 

basically the same policies, rates and services. The addition of new capital in both 

institutions will provide them with a larger 

lending limit, and considerations of convenience and needs of the com m unity appear to 

be consistent with approval of this a p p lica ­

tion.

A review of available inform ation, including 

the Com m unity Reinvestment Act Statements 

of both proponents and other relevant m aterial, disclosed no inconsistencies with the 

purposes of the Act. The resultant bank is 

expected to continue to meet the cred it 

needs of its entire com m unity, consistent with 

the safe and sound operation of the institution.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Republic Bank

Gardena, California

67,763 1 3

to merge with

California Pacific

Bank

Fullerton, California

16,113 2

Summary report by Attorney General, 

O ctober 26, 1979

We have reviewed this proposed transaction and conclude that it would not have an 

adverse effect upon com petition.

Basis for Corporation Approval 

N ovem ber 30, 1979

Republic Bank, G ardena, California, an insured State nonm em ber bank with total resources of $67,763,000 and total IPC deposits of $56,461,000, has applied, pursuant 

to Section 18(c) and other provisions of the 

Federal Deposit Insurance Act, for the Corporation’s consent to m erge, under its charter and title, with C alifornia Pacific Bank, 

Fullerton, California (“ CPB” ), with total resources of $16,113,000 and total IPC deposits of $11,725,000. Incident to the proposed transaction, the two offices of CPB

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120 FEDERAL DEPOSIT INSURANCE CORPORATION

would be established as branches of the 

resultant bank.

Competition. Republic Bank, established 

in 1974, operates its sole office in the city of 

G ardena (1970 population 41,021) in southern Los angeles County approxim ately 12 

road miles south of the central business 

district of the city of Los Angeles. R epublic 

Bank has been granted approval to establish 

a de novo b ra n c h o ffic e s o u th w e s t of 

G ardena in the city of Torrance. CPB, established in 1971, operates its head office in the 

western portion of the city of Fullerton and a 

branch located approxim ately 3 miles east 

near the c ity ’s central business district. The 

city of Fullerton (1970 population 85,826; 

estim ated 1978 population in excess of 

100,000) is located in northwestern O range 

County approxim ately 25 road miles southeast of the city of Los Angeles.

The relevant m arket in which to assess the 

com petitive im pact of the proposed transaction is regarded as the trade area of CPB, 

approxim ated by the contiguous cities of 

Fullerton, Anaheim, Brea, Buena Park, La 

H abre and Placentia in the northwestern portion of O range County. The market, containing a 1970 p o pulation of a p p ro xim ate ly 

400,000, is a rela tive ly affluent, h ig h lydeveloped urbanized area. It has experienced dynam ic growth during the last two 

decades, with m oderate growth projected for 

the next d e ca de . Form erly a g ric u ltu ra lly 

oriented, the area is now prim arily residential 

with a num ber of large industrial em ployers 

located in Fullerton. There is also evidence of 

com m utation outside of relevant m arket for 

em ploym ent alternatives.

The p ro p o n e n ts ’ c lo s e s t o ffic e s are 

situated approxim ately 20 road miles apart 

with no evidence of overlap in the service 

areas, indicating that the proposal would 

have no significant effect on existing com ­

petition between the two banks. California 

statutes perm it statew ide m erger and de

novo branching activity and thus, there does 

exist some potential for com petition to develop between them at some future time. The 

loss of this potential, however, is not regarded as having any material adverse com ­

p e titiv e im p a c t in lig h t of th e h ig h ly - 

developed urbanized nature of the proponents’ respective trade areas and of the 

intervening area between them, as well as 

the presence of numerous offices of the 

state’s largest banks.

In the relevant m arket a total of 23 insured 

com m ercial banks operate 84 banking offices. CPB, holding only a 0.9 percent share 

of the m arket’s IPC deposits, ranks as one of 

its sm allest banks. CPB has failed to achieve

the deposit growth enjoyed by many of the 

other banks in this m arket during the 1970’s 

and experienced a loss in m arket share held 

in the period from June, 1978 to June, 1979. 

The m arket is dom inated by offices of most of 

the state’s largest banking organizations, 

with two of California's three largest banks 

aggregately holding 46.8 percent of the relevant m arket’s IPC deposit base. In such a 

com petitive environm ent, the proposal is regarded as having no significant effect on the 

level of concentration of banking resources 

or upon the structure of com m ercial banking.

The Board of Directors is of the opinion that 

the proposed transaction w ould not, in any 

section of the country, substantially lessen 

com petition, tend to create a m onopoly or in 

any other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. CPB has had a history of poor 

earnings and is presently regarded as und erca p ita lized . The bank has undergone 

several changes in senior m anagem ent in 

recent years and has been unable to establish itself as an effective com petitor in its 

market. R epublic Bank has a history of satisfa c to ry o p e ra tio n w ith rela tive ly healthy 

earnings and tim ely capital augm entation. 

The proposed transaction would provide a 

means of resolving the problem s facing CPB, 

w ith in the fra m e w o rk of a la rg e r w e llestablished bank. The resultant bank would 

possess a satisfactory level of financial and 

m anagerial resources to overcom e these difficulties and would appear to have favorable 

future prospects.

Convenience and Needs of the Community

to be Served. The proposed transaction 

would have little material im pact upon the 

level and pricing of com m ercial banking services in the com m unity served by CPB, as an 

extensive array of such services is readily 

a v a ila b le at o ffic e s o f re la tiv e ly la rg e 

statew ide banking organizations which are 

heavily represented in this area. The resultant 

bank is, however, anticipated to com pete 

more aggressively than CPB has been ca p a ­

ble of in recent periods, providing custom ers 

in the local com m unity with an additional 

effective alternate source of such com m ercial banking services. C onsiderations relating to the convenience and needs of the 

com m unity to be served are consistent with 

approval of the application.

A review of the available inform ation, including the Com m unity Reinvestment A ct 

Statem ents of the proponents, disclosed no 

inconsistencies with the purposes of the Act. 

The resultant bank is expected to continue to 

m eet the credit needs of its entire com m unity, 

consistent with the safe and sound operation

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 121

of the bank.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is w arranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

The Morris County

Savings Bank

Morristown, New 

Jersey

687,793 12 13

to purchase the assets and

assume the deposit liabilities

of

Bernards State Bank

Bernardsville, New 

Jersey

12,563 1

Sum m ary report by Attorney General, 

N ovem ber 30, 1979

We have reviewed this proposed transaction and conclude that it w ould not have a 

substantial com petitive im pact.

Basis for C orporation Approval 

N ovem ber 30, 1979

The Morris County Savings Bank, M orristown, New Jersey (“ A p p lica n t” ), an insured 

mutual savings bank with total resources of 

$ 6 8 7 ,7 9 3 ,0 0 0 a n d to ta l d e p o s its of 

$642,568,000, has applied, pursuant to Section 18(c) and other provisions of the Federal 

D eposit Insurance Act, for the C orporation’s 

consent to purchase the assets of and assume the liability to pay deposits m ade in 

B ernards State Bank, Bernardsville, New 

Jersey (“ State B ank” ), an insured State nonm e m b e r b a n k w ith to ta l re s o u rc e s of 

$ 1 2 ,5 6 3 ,0 0 0 and to ta l IPC d e p o s its of 

$9,959,000, and to establish the sole office of 

Bernards State Bank as a branch.

Competition. A pplicant, headquartered in 

the town of M orristow n (1970 population 

17,662), operates ten offices in Morris County 

in northern New Jersey and one office each in 

adjoining Sussex and W arren Counties. State 

Bank, established in 1975, operates its sole 

office in the borough of Bernardsville (1970 

p o p u la tio n 6,652) in northern S om erset 

County approxim ately 8 road miles southw est of Morristown.

The com petitive im pact of the proposed 

transaction would be most direct and im ­

m ediate in the area within an approxim ate 10

road-m ile radius of Bernardsville w hich includes the northern portion of Som erset 

County and the adjacent southern portion of 

Morris County. This area, containing an estim ated 1970 population in excess of 100,000, 

is rapidly developing and presently undergoing a change from a rural to a m ore suburban nature. The 1978 m edian household 

buying levels for Morris and Somerset C ounties are significantly higher than the com parable state figure of $20,037.

In the relevant area a total of ten com m ercial banks operate 31 offices. State Bank 

ranks as the 7th largest com m ercial bank in 

the m arket holding a m odest 3.0 percent 

share of the m arket’s IPC deposit base. 

Com m ercial banking in this m arket is dom inated by the presence of affiliates of several 

of the state’s largest com m ercial banking 

organizations, with the m arket’s two largest 

banks, which are affiliated with such organizations, aggregately controlling over 55 percent of the m arket’s com m ercial bank IPC 

deposits. In such a com petitive environm ent, 

the proposed acquisition of State Bank is 

regarded as having little im pact upon the 

structure of com m ercial banking.

A pplicant operates its head office and four 

branch offices in relatively close proxim ity to 

Bernardsville with A p p lica n t’s M endham O ffice (total deposits $66,199,000) located less 

than 5 road miles from State Bank. A pplicant 

and State Bank, by virtue of their respective 

charters and C orporate powers, serve different segm ents of the banking public although, 

to some extent, they offer sim ilar se rvices.1 

State Bank, however, holds only 0.8 percent 

of the IPC tim e and savings deposits held by 

offices of com m ercial banks and thrift institutions in the market. The lim ited volum e of 

existing com petition betw een the p ro p o ­

nents, and the potential for increased com ­

petition to develop, however, does not rise to 

a level of com petitive significance that its 

elim in a tio n w ould su b stan tia lly lessen c o m ­

petition.

The Board of Directors is of the opinion that 

the proposed transaction would not, in any 

section of the country, substantially lessen 

com petition, tend to create a m onopoly or in 

any other m anner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. State Bank, established in 

1975, experienced initial start-up difficulties 

and has failed to establish itself as an effective com petitive force in the market. A p p licant, with a history of satisfactory operation,

1 United States v. Phillipsburg National Bank and Trust

Company, 399 U.S. 350 at 359-60 (1970).

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122 FEDERAL DEPOSIT INSURANCE CORPORATION

possesses the necessary financial and m anagerial resources to successfully address 

such problem s within the fram ew ork of a 

financially sound thrift institution. The resultant institution is anticipated to have favorable future prospects.

Convenience and Needs of the Community

to be Served. As a direct consequence of this 

proposal, one com m ercial banking office 

would be elim inated and replaced by an 

office of a relatively large mutual savings 

bank. While A pplicant would be able to provide most of the present custom ers of State 

Bank with equal or com parable services, 

some businessm en and m erchants would 

find it necessary to seek an alternate com ­

m ercial b anking source. In light of the 

numerous offices of both small independent 

com m ercial banks and of affiliates of relatively large statewide com m ercial banking 

organizations available in the market, this 

consequence, a ffe ctin g only a sm all segement of the local banking public, is regarded 

as having only a m odest im pact. C onsiderations relating to the convenience and needs 

of the com m unity to be served, on balance, 

are consistent with approval of the ap p lica ­

tion.

A review of available inform ation, including 

the Com m unity Reinvestment Act Statements 

of both proponents and other relevant m aterial, disclosed no inconsistencies with the 

purposes of the Act. The resultant institution 

is expected to continue to meet the credit 

needs of its entire comm unity, consistent with 

its safe and sound operation.

Based on the foregoing inform ation, the 

Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

International Central

Bank

N ew port Beach, 

California

1,000 1 1

to merge with

International Trust

Corporation

Newport Beach, 

California

436

Sum mary report by Attorney General, 

S eptem ber 19, 1979

The m erging banks are both w holly-ow ned

subsidiaries of the same bank holding com ­

pany. As such, their proposed m erger is 

essentially a corporate reorganization and 

would have no effect on com petition.

Basis for C orporation Approval 

Decem ber 17, 1979

International Central Bank (“ ICB” ), Newport Beach, California, an insured State nonm em ber bank with total assets of $1,000,000, 

has applied, pursuant to Section 18(c) and 

other provisions of the Federal Deposit Insurance Act, for the C orporation’s prior consent 

to m erge with International Trust C orporation 

(“ ITC” ), N ew port Beach, California, a noninsured financial corporation with total assets 

of $436,195, under the charter and title of 

ICB. A pplication has also been m ade for the 

resultant bank to exercise trust powers.

Both e n titie s are w h o lly -o w n e d s u b ­

sidiaries of CPI Group, Inc., N ew port Beach, 

California, a subsidiary of Autom atic Data 

Processing. CPI Group, Inc. is an independent adm inistrator of individual and partnership “ K e o g h ” retirem ent plans, and a d ­

m inisters m any small to m edium corporate 

plans, as well as individual retirem ent plans.

The proposed transaction, essentially an 

internal reorganization, would m erely consolidate the affiliated entities and facilitate 

their internal accounting, and as such would 

have no effect on existing or potential com ­

petition in any relevant area. All factors required to be considered pertinent to each 

application have been favorably resolved.

On the basis of the foregoing inform ation, 

the Board of Directors has concluded that 

approval of the applications is warranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Society Bank

Colum bus, Ohio

to purchase the assets and

assume the deposit liabilities

of

65,051 10 13

The American Bank

of Central Ohio

Harrisburg, Ohio

EMERGENCY

18,088 3

Summary report by Attorney General, 

no report received.

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Basis for Corporation Approval 

D ecem ber 20, 1979

Society Bank, Colum bus, Ohio, an insured 

State nonm em ber bank with total resources 

of $65,051,000 and total IPC deposits of 

$49,290,000, has applied, pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the C orporation’s 

prior written consent to purchase certain assets of and assum e the liability to pay d e ­

posits m ade in The Am erican Bank of Central 

Ohio, Harrisburg, Ohio (“ Am erican Bank” ), 

an insured State nonm em ber bank with total 

resources or $18,088,000 and total IPC deposits of $16,409,000. The three offices of 

A m e ric a n B ank w ill be e s ta b lis h e d as 

branches of Society Bank.

The Superintendent of Banks for the State 

of O hio has advised the C orporation of the 

existence of an em ergency and requested 

expeditious action pursuant to paragraph 6 

of Section 18(c) of the Federal Deposit Insurance Act. The publication required by the 

Bank M erger A ct has been com pleted.

Competition. Society Bank operates 10 offices in Franklin County, which is located in 

central Ohio. Society Bank is affiliated with 

Society Corporation, Cleveland, Ohio, the 

state’s fourth largest banking organization. It 

controls 13 banks whose total com m ercial 

bank deposits at June 30, 1978 aggregated 

$1,809,511,000 — 4.9 percent of the State’s 

total deposits. Am erican Bank operates three 

offices in Franklin County, its main office in 

H arrisburg, one branch in Grove City, and 

one branch in the western portion of the city 

of Colum bus.

The area m ost relevant to consideration of 

a com petitive analysis in this case is considered to be Franklin County and the adjoining 

portions of M adison and Pickaway Counties 

that are within approxim ately ten road miles 

of H arrisburg. This relevant market, mainly an 

urbanized area co n ta in in g the c ity of C o lu m ­

bus (1970 population 539,677), has an estim ated 1970 population of 843,828. The m arket is served by 13 banks operating 161 

offices, and six of the state’s ten largest 

banking organizations are represented there. 

O f th e IPC d e p o s its a g g re g a tin g 

$3,007,482,000 held by area offices of such 

banks at June 30, 1979, Society Bank held 

1.6 percent, the fifth largest share; Am erican 

Bank held 0.5 percent, the ninth largest 

share.

Following consum m ation of the proposal, 

Society Bank’s share would increase only to 

2.1 percent and would remain as the fifth 

largest bank in the market. Any com petition 

betw een Society Bank and Am erican Bank 

appears to be minimal in view of the size of

the other com petitors in the m arket and the 

precarious financial condition of Am erican 

Bank.

Under these circum stances, the Board of 

Directors has concluded that the proposed 

transaction would not, in any section of the 

country, substantially lessen com petition, 

tend to create a m onopoly or in any other 

m anner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. F in a n cia l re s o u rc e s of 

A m erican Bank are inadequate and its future 

viability is in grave doubt. Society Bank has a 

sound asset structure and satisfactory m anagem ent. With the contem plated addition to 

its capital accounts, prospects of the resultant bank are considered favorable.

Convenience and Needs of the Community

to be Served. Consum m ation of the proposal 

would preclude any interruption of banking 

services for the clientele of Am erican Bank. 

These individuals should also benefit from 

the resulting larger, sound institution.

A review of available inform ation, including 

the Com m unity Reinvestment A ct Statem ents 

of the proponents and other relevant m aterial, disclosed no inconsistencies with the 

purposes of the Act. The resultant bank is 

expected to continue to m eet the credit 

needs of its entire com m unity, consistent with 

the safe and sound operation of the bank.

Based on the foregoing, the Board of Directors has concluded that approval of the 

application is w arranted.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

American Banking

Company

Moultrie, Georgia

17,990 1 2

to purchase the assets and

assume the deposit liabilities

of

Toney Brothers Bank

Doerun, Georgia

6,780 1

A pproved under em ergency provisions. 

No report requested from the Attorney G eneral.

Basis for Corporation Approval 

January 6, 1979

A m erican Banking C om pany, M oultrie, 

Georgia, an insured State nonm em ber bank 

with total resources of $17,990,000, has

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124 FEDERAL DEPOSIT INSURANCE CORPORATION

applied pursuant to Section 18(c) of the Federal D eposit Insurance Act, for the C orporation’s consent to purchase the assets of and 

assum e the liability to pay deposits m ade in 

Toney Brothers Bank, Doerun, G eorgia, an 

insured State nonm em ber bank with total 

resources of $6,780,000. Incident to the 

transaction, the sole office of Toney Brothers 

Bank w ould becom e a branch of Am erican 

Banking Com pany.

As of January 5, 1979, Toney Brothers 

B a n k h a d d e p o s its of a p p ro x im a te ly 

$5,800,000 and operated one office. On 

January 5, 1979, the Federal Deposit Insurance Corporation was appointed as Receiver 

of Toney Brothers Bank.

The Board of Directors finds that the failure 

of Toney Brothers Bank requires it to act 

im m ediately and thus waives publication of 

notice, dispenses with the solicitation of 

com petitive reports from other agencies, and 

authorizes the transaction to be consum ­

m ated im m ediately.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

Independence Bank

of Chicago

C hicago, Illinois

73,253 2 4

to purchase the assets and

assume the deposit liabilities

of

Guaranty Bank &

Trust Company

C hicago, Illinois

8,610 1

and

Gateway National

Bank of Chicago

C hicago, Illinois

23,110 1

A pproved under em ergency provisions. 

No report requested from the Attorney G eneral.

Basis for C orporation Approval 

July 14, 1979

Independence Bank of C hicago, C hicago, 

Illinois, an insured State nonm em ber bank 

with total resources of $73,253,000, has 

applied pursuant to Section 18(c) of the Federal D eposit Insurance Act, for the C orporation’s consent to purchase the assets of and 

assum e the liability to pay deposits m ade in 

G uaranty Bank & Trust Com pany, Chicago,

Illinois, an insured State nonm em ber bank 

with total resources of $8,610,000, and 

G ateway National Bank of Chicago, C hicago, 

Illinois, with total resources of $23,110,000. 

Incident to the transaction, the sole office of 

G uaranty Bank & Trust C om pany and the 

sole office of G ateway National Bank of 

C hicago would becom e facilities of Independence Bank of Chicago. A pplication is also 

m ade for Independence Bank of C hicago to 

exercise trust powers.

On July 14, 1979, the Federal Deposit 

Insurance C orporation was appointed as Receiver of G uaranty Bank & Trust Com pany 

(whose deposits were estim ated at approxim ately $7,400,000 and operated one office) 

and G atew ay N ational Bank of C hicago 

(whose deposits were estim ated at approxim ately $9,100,000 and operated one office).

The Board of Directors finds that the failure 

of Guaranty Bank & Trust C om pany and 

Gateway National Bank of C hicago requires it 

to act im m ediately and thus waives pu b lica ­

tion of notice, dispenses with the solicitation 

of com petitive reports from other agencies, 

and authorizes the transactions to be consum m ated im mediately.

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

American Bank

Houston, Texas

- 0 1

(in organization)

to purchase the assets and

assume the deposit

liabilities of

American National

Bank

Houston, Texas

11,695 1

A pproved under em ergency provisions. 

No report requested from the Attorney General.

Dasis for Corporation A pproval 

July 12, 1979

A m erican Bank, Houston, Texas, a newly 

c h a rte re d S tate n o n m e m b e r bank, has 

applied pursuant to Sections 5 and 18(c) of 

the Federal Deposit nsurance Act, for Federal deposit insurance and for the C orporation’s consent to purchase the assets of and 

assum e the liability to pay deposits m ade in 

A m erican National Bank, Houston, Texas 

(total resources of $11,695,000).

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On O ctober 12, 1979, the Federal Deposit 

Insurance C orporation was appointed as Receiver of Am erican National Bank (whose 

deposits were approxim ately $9,690,000 and 

operated one office).

The Board of Directors finds that the failure 

of Am erican National Bank requires it to act 

im m ediately and thus waives publication of 

notice, dispenses with the solicitation of 

com petitive reports from other agencies, and 

authorizes the transaction to be consum ­

m ated im m ediately.

M erger transactions were involved in the 

acquisitions of banks by holding com panies 

in the follow ing approvals in 1979. In each 

instance, the Attorney G eneral’s report stated 

that the proposed transaction would have no 

e ffe ct on com petition. The C o rpo ra tion ’s 

basis for approval in each case stated that 

the proposed transaction would not, per se, 

change the com petitive structure of banking, 

nor affect the banking services that the 

(operating) bank has provided in the past, 

and that all other factors required to be 

considered pertinent to the application were 

favorably resolved.

Lee County Bank, O pelika, Alabam a, in 

o rg a n iz a tio n ; o ffice s: 0; resources: 100 

($000); to purchase the assets and assume 

the deposit liabilities of and change title to 

The B ank of E ast A la b a m a , O p e lik a , 

A la b a m a; o ffic e s : 3; reso u rce s: 3 9,442 

($000). Approved: January 25.

The F. B. G. Bank of Marion, Marion, Ohio, 

in orga n iza tio n; offices: 0; resources: 0 

($000); to m erge with and change title to The 

Marion County Bank, Marion, Ohio; offices 4; 

resources: 56,636 ($000). Approved: February 2.

Georgia Bank and Trust Company, Macon, 

G eorgia; o ffice s: 6; reso u rce s: 102,762 

($000); to m erge with G eorgia Interim Com ­

pany, Macon, G eorgia, in organization; offices: 0; resources: 0 ($000). Approved: 

February 23.

New Riverside Bank, Fort Worth, Texas, in 

o rg a n iz a tio n ; o ffice s: 0; resources: 200 

($000); to m erge with and change title to 

Riverside State Bank, Forth Worth, Texas; 

offices: 1; resources: 84,032 ($000). A p ­

proved: M arch 29.

Collegiate State Bank of Fort Worth, Forth 

W orth, Texas, in organization; offices: 0; resources: 200 ($000); to m erge with and 

change title to University Bank, Forth Worth, 

Texas; offices: 1; resources: 89,214 ($000). 

A pproved: April 12.

Trust Company of Gwinnett County, Lawrenceville, G eorgia, in organization; offices: 

0; resources: 700 ($000); to m erge with and 

change title to Gwinnett Com m ercial Bank, 

Lawrenceville, Georgia; offices: 2 resources: 

22,396 ($000). Approved: April 23.

Security Bank and Trust Company, Albany, 

Georgia; offices: 2; resources: 31,160 ($000); 

to m erge with CB&T, Inc., Columbus, G eorgia, in organization; offices: 0; resources: 1 

($000). Approved: April 24.

Alaska Pacific Bank, Anchorage, Alaska; 

offices: 2; resources: 70,248 ($000); to 

m erge with Alaska Interim Bank, Anchorage, 

Alaska, in organization; offices; 0; resources: 

30 ($000). Approved: May 1.

First Alabama Bank of Conecuh County,

Evergreen, Alabam a, in organization; offices: 

0; resources; 50 ($000); to m erge with The 

Conecuh County Bank, Evergreen, Alabam a; 

offices: 1; resources: 17,928 ($000). A p ­

proved: May 15.

Central Michigan Bank and Trust, Big 

R apids, M ichigan; offices: 9, resources: 

57,227 ($000); to co n so lid a te with CMB 

Bank, Big Rapids, M ichigan, in organization; 

offices: 0; resources: 120 ($000). Approved: 

May 18.

CS Bank, G allipolis, Ohio, in organization; 

offices: 0; resources: 312 ($000); to purchase 

the assets and assum e the deposit liabilities 

of and change title to The Com m ercial and 

Savings Bank, Gallipolis, Ohio; offices: 3; 

resources; 35,562 ($000). Approved: May 

25.

Gold Country Bank, Grass Valley. C alifornia; 

offices: 5; resources 2 2 ,1 4 7 ($ 0 0 0 ); to 

merge w ith IBC Investm ent C orporation, San 

Rafael, C alifornia, in organization; offices: 0; 

resources: 1 0 ($ 0 0 0 ). Approved: June 29.

Peoples Bank of South Jersey, Clayton, 

New Jersey, in organization; offices: 0; resources: 860 ($000); to purchase the assets 

and assume the deposit liabilities of Peoples 

Bank of South Jersey, Clayton, New Jersey; 

offices: 7; resources: 31,654 ($000). A p ­

proved: July 20.

South Street State Bank, Pasadena, Texas, 

in organization; offices: O; resources: 200 

($000); to m erge with and change title to San 

Jacinto State Bank, Pasadena, Texas; offices: 1; resources: 81,567 ($000). A pproved: 

August 13.

Texas A & M Bank, College Station, Texas, 

in organization; offices: 0; resources: 200 

($000); to m erge with and change title to 

Bank of A & M, College Station, Texas; offices: 1; resources: 52,410 ($000). Approved: 

A ugust 24.

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126 FEDERAL DEPOSIT INSURANCE CORPORATION

H. S. Bank, Schaum burg, Illinois, in organization; offices: 0; resources: 0 ($000); to 

m erge with and change title to Suburban 

Bank of H offm an-Schaum burg, Schaum burg, 

Illinois; offices: 2; resources: 19,106 ($000). 

A pproved: Septem ber 10.

The Olivet State Bank, Olivet, M ichigan; 

offices: 1; resources: 7,033 ($000); to m erge 

with New State Bank of Olivet, Olivet, M ichigan, in organization; offices: 0; resources: 

120 ($000). A pproved: Septem ber 13.

Summit Bank and Trust Company of Fort

Wayne, Fort W ayne, Indiana, in organization; 

offices: 0; resources: 0 ($000); to m erge with 

and change title to Indiana Bank and Trust 

C om pany of Fort Wayne, Fort Wayne, Indiana; offices: 12; resources: 276,044 ($000). 

A pproved: S eptem ber 28.

New Addision State Bank, A ddision, Texas, 

in organization; offices: 0; resources: 50 

($000); to m erge with and change title to 

Addison State Bank, A ddison, Texas; offices: 

1; resources: 26,929 ($000). A pproved: O ctober 23.

New South Central Bank, Hutchins, Texas, 

in organization; offices: 0; resources: 50 

($000); to m erge with and change title to 

South Central Bank, Hutchins, Texas; offices: 

1; resources: 9,781 ($000). A pproved: O ctober 23.

Hood River County Bank, Hood River, O regon; offices: 1; resources: 6,501 ($000); to 

m erge with Hood River County Interim Bank, 

Hood River, Oregon, in organization; offices: 

0; resources: 10 ($000). A pproved: O ctober 

29.

New First State Bank of Taft, Taft, Texas, in 

organization; offices: 0; resources: 50 ($000); 

to m erge with and change title to The First 

State Bank of Taft, Taft, Texas; offices: 1; 

resources: 10,286 ($000). Approved: O ctober 31.

Citizens Bank and Trust Company, Clare, 

M ichig a n ; o ffice s: 7; resources: 72,738 

($000); to m erge with CBC Bank, Clare, 

M ichigan, in organization; offices: 0; resources: 120 ($000). Approved; Novem ber 

16.

Commercial State Bank, Houston, Texas; 

o ffices: 1; resources: 40,803 ($000); to 

m erge with New Com m ercial State Bank, 

Houston, Texas, in organization; offices: 0;

resources: 200 ($000). Approved: Novem ber 

16.

The Bank of Flampton, Ham pton, Georgia; 

offices: 1; resources: 7,281 ($000); to m erge 

with Interim -Ham pton, Inc., Ham pton, G eorgia, in organization; offices: 0; resources: 1 

($000). Approved: N ovem ber 20.

Valley Central Bank, Richfield, Utah; offices: 1, resources: 15,697 ($000); to m erge 

with VC Bank C orporation, Richfield, Utah, in 

organization; offices: 0; resources: 0 ($000). 

A pproved: Novem ber 21.

First Railroad Bank of Dalton, Dalton, 

G eorgia, in o rg a n iza tio n; o ffices: 0; resources: 500 ($000); to m erge with and 

change title to The Bank of Dalton, Dalton, 

Georgia; offices: 3; resources: 29,099 ($000). 

A pproved: Novem ber 21.

First Railroad Bank of Cobb County,

Marietta, Georgia, in organization; offices: 0; 

resources: 500 ($000); to m erge with and 

change title to The Com m ercial Bank of Cobb 

County, M arietta, Georgia; offices: 7; res o u rc e s : 4 8 ,6 3 6 ($ 0 0 0 ). A p p ro v e d : 

Novem ber 21.

The Bank of Duluth, Duluth, Georgia; offices: 1; resources: 26,727 ($000); to m erge 

with DuCorp, Inc., Atlanta, Georgia, in organization; offices: 0; resources: 1 ($000). 

A pproved: Novem ber 29.

Mercantile Bank of Houston, Houston, 

Texas; offices: 1; resources: 90,060 ($000); 

to m erge with and change title to Allied 

M ercantile Bank, Houston, Texas, in organization; offices: 0; resources: 200 ($000). A pproved: N ovem ber 30.

Allied Cypress Bank, Houston, Texas, in 

o rg a n iza tio n ; o ffices: 0; reso u rce s: 100 

($000); to m erge with Cypress Bank, Houston, Texas; offices: 1; resources: 36,140 

($000). Approved: D ecem ber 7.

Texas Bank and Trust Company, Jacksonville, Texas; offices: 1; resources: 50,979 

($000); to m erge with and change title to 

Allied Texas Bank, Jacksonville, Texas, in 

organization; offices: 0; resources: 75 ($000). 

A pproved: D ecem ber 14.

Port City State Bank, Houston, Texas; offices: 1; resources: 54,448 ($000); to m erge 

with New Port City Bank, Houston, Texas, in 

o rg a n iza tio n ; o ffices: 0; resources: 200 

($000). Approved: D ecem ber 21.

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127

BANK ABSORPTION DENIED BY THE CORPORATION

Resources 

(in thousands 

of dollars)

Banking Offices 

in Operation

Before After

The Pennsylvania

Bank and Trust

Company

Warren,

Pennsylvania

470,252 24 25

to merge with

The Farmers National

Bank of

Conneautville

Conneautville,

Pennsylvania

7,962 1

Sum mary report by Attorney General,

May 1, 1979

Overall, in our view, the proposed transaction would not have a significantly adverse 

com petitive effect.

Basis for C orporation Denial 

July 30, 1979

The Pennsylvania Bank and Trust Com ­

pany, Warren, Pennsylvania (“ Penn Bank” ), 

an insured State nonm em ber bank with total 

resources of $470,252,000 and total IPC deposits of $394,384,000, has applied, pursuant to Section 18(c) and other provisions of 

the Federal Deposit Insurance Act, for the 

C orporation’s prior consent to m erge with 

The Farmers National Bank of Conneautville, 

C onneautville, P ennsylvania (“ F arm ers” ), 

with total resources of $7,962,000 and total 

IPC deposits of $6,971,000. The banks would 

m erge under the charter and title of Penn 

Bank and, incident to the m erger, the sole 

office of Farmers would becom e a branch of 

the resulting bank, increasing the num ber of 

its offices to 25.

Penn Bank is the 24th largest com m ercial 

bank in Pennsylvania. Its main office is loc a te d in W arren C o u n ty and its le g a l 

branching area consists of W arren County 

and the six contiguous counties. Its 24 offices 

are located in Erie (2), C rawford (6), Venango 

(4), Elk (4), McKean (3), and Warren (5) 

Counties with Forest being the only county in 

Penn Bank’s legal branching area in which it 

is not currently represented. Penn Bank has 

the largest share of com m ercial bank deposits (20.5 percent) in the seven-county 

area. Farmers operates its sole office in the 

northwestern section of Crawford County. It is 

the sm allest bank in the county and one of the 

sm allest banks in the state.

Competition. Penn Bank operates in several markets spread throughout its legal 

b ra n c h in g area, p ro v id in g c o n v e n ie n tly 

available banking services to a m ajority of the 

residents of the area. In the C rawford County 

area Penn Bank has six offices, and three are 

located within 15 road miles of Farmers. In 

addition to these three offices, Penn Bank 

has two branches in M eadville which is approxim ately 16 road miles from Farmers. Its 

closest office to Farmers is the Linesville 

Branch, approxim ately 8 road miles southwest. This is also the closest com m ercial 

banking office to Farmers.

The effects of the proposed m erger would 

be most im m ediate and direct within the 

prim ary trade area of Farmers, which consists of that area within approxim ately 15 

road miles of Conneautville and extended in 

the southeast to include the city of M eadville. 

The area is largely agricultural with industrial 

activities concentrated in M eadville and its 

im m ediate surrounding area. M eadville is the 

co u n ty seat and serves as the prim ary 

econom ic center for the area. It is easily 

a ccessible by two major state highw ays and 

Interstate Route 79, a m ajor north-south 

highway. The 1970 population of the area 

was 47,949, with M eadville and the surrounding tow nships accounting for over 50 

percent of the population.

The area is served by 15 offices of six 

com m ercial banks, including five office of 

Penn Bank. Farmers is the sm allest bank in 

the area, with 3.2 percent of com m ercial 

bank IPC deposits, but Penn Bank is the 

dom inant bank with 41.4 percent of the 

area’s com m ercial bank IPC deposits. There 

are no intervening offices of other com m ercial banks between Farmers and some of the 

branches of Penn Bank, including the Linesville office (8 miles) and the Saegertown 

office (12 miles).

Therefore, the proposed transaction would 

not only elim inate existing com petition, but it 

would serve to further concentrate banking 

resources in the dom inant bank in the area, 

and it would elim inate a convenient banking 

alternative for m any of the area residents.

There appears to be no significant potential for com petition to increase between the 

proponents through future de novo branching. Farmers does not appear to have the 

financial or m anagerial resources to facilitate 

such expansion, and the sparse population 

of the area im m ediately surrounding Farmers 

does not make it a very attractive location for 

de novo branching. Increased com petition 

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128 FEDERAL DEPOSIT INSURANCE CORPORATION

ever, if Farmers were to be acquired by a 

bank other than Penn Bank. Such an a cquisition could result in the eventual lessening of 

Penn B a n k’s m arket d o m in a tio n . U nder 

Pennsylvania banking laws, there are 17 

com m ercial banks that could m erge with 

Farmers. They range in deposit size from 

$6,900,000 to $421,869,000 (Penn Bank). 

Only five of these banks are currently in 

direct com petition with Farmers. Of the banks 

not in direct com petition, there are five banks 

with deposits in excess of $150,000,000. 

Therefore, there appears to be a sufficient 

num ber of potential m erger partners for 

Farmers, any one of which would have a less 

anticom petitive effect than a m erger with 

Penn Bank.

In view of the above, it appears to the 

Corporation that the proposed m erger would

(i) elim inate significant existing com petition,

(ii) increase the dom inant bank’s share of the 

market from 41.4 percent to 44.6 percent, (iii) 

reduce the num ber of banking alternatives in 

the relevant area from six to five, and (iv) 

foreclose the possibility that significant new 

com petition could arise by elim inating a 

m erger partner for a bank not represented in 

the market.

Financial and Managerial Resources; Future Prospects. Both banks have satisfactory 

financial and m anagerial resources, and both 

have satisfactory prospects for the future. 

The same w ould be true of the resulting bank 

if the m erger were approved. The banking 

factors, accordingly, are considered to w eigh 

neither in favor of nor against the m erger 

proposal.

Convenience and Needs of the Community

to be Served. Since Penn Bank is already 

represented in the market, there would be no 

change in services offered for the m arket as 

a whole. C onsiderations of convenience and 

needs of the com m unity are neutral and 

weigh neither in favor of nor against the 

proposed m erger.

A review of available inform ation, including 

the Com m unity Reinvestment A ct Statements 

of the proponents and other relevant m aterial, disclosed no inconsistencies with the 

purposes of the act.

Since the anticom petitive effects of the 

proposed m erger are not, in the opinion of 

the Board of Directors, clearly outw eighed by 

other factors, the C orporation has concluded 

that the proposed m erger of Penn Bank and 

Farmers should be denied.

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Federal Reserve Bank of St. Louis
REGULATIONS AND LEGISLATION 

PART FOUR

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131

LEGISLATION—1979

Financial Privacy Notification Repeal. Public Law96-3, approved March 

7,1 979, repealed the notice require* 

ment contained under section 1 104(d) 

of the Right to Financial Privacy Act 

which would have become effective 

on March 10, 1 979, and would have 

required all creditor and financial 

institutions to notify their customers of the rights under this Act.

Insurance of Foreign Bank Branches.

Public Law96-64, approved September 

14, 1 979, amended the International Banking Act of 1 978 (Public 

Law95-369)to permit existing branches 

of foreign banks which have applied 

for Federal deposit insurance by September 1 7, 1 979, and have not had 

their application denied, to continue 

deposit retail operations until January 31,1 980.

Automatic T ransfer Accounts-State

Usury Laws. Public Law 96-161, 

approved December 28, 1979, extended for 90 days (until March 31, 

1980) the authority for banks to 

offer automatic transfers from savings to checking accounts, for savings and loan associations to operate remote service units, and for 

credit unions to offer share draft 

accounts. This legislation also exempted agricultural and business 

loans of $25,000 or more from State 

usury limitations. This exemption expires on March 31, 1 980 for those 

States that have statutory usury provisions and on July 1, 1981 for 

those States having constitutional 

usury restrictions. Any State could 

reinstate its own usury ceilings by 

taking affirmative action to that effect. Finally, Public Law96-161 authorized interest-bearing negotiable order 

of withdrawal (NOW) accounts for 

the State of New Jersey.

RULES AND REGULATIONS-1979

Change in Bank Control (Part 303)

On January 24, 1979, the FDIC 

adopted revisions to sections 303.1 1

and 303.15 of its regulations to 

implement the Change in Bank Control Act of 1978. The Act requires 

any person seeking to acquire control of an insured bank to file 60 

days' advance notice with the appropriate Federal banking agency. In 

addition, the Act describes the factors that the FDIC and other Federal 

banking agencies are to consider in 

determining whether a transaction 

covered by the Act should be disapproved.

Disclosure of Trust Department Asset Reports (Part 309). On October 

22, 1979, the FDIC approved an 

amendment to Part 309 of its regulations to permit routine public disclosure on a request basis of Trust 

Department Annual Reports currently filed with the FDIC by insured 

State nonmember banks.

Interest Rate Regulations (Part 329).

Effective March 1 5, 1 979, the FDIC 

amended Part 329 of its regulations 

to prohibitthe compounding of interest by insured State nonmember 

banks on money market certificates 

of $10,000 or more. The ban applies to certificates with maturities 

of 26 weeks that have their interest 

rate ceiling keyed to the average 

auction discount rate on the most 

recently issued 6-month UnitedStates Treasury bills. The amended 

Part 329 also requires that advertisements by insured nonmember 

banks offering such certificates contain a statement that Federal regulations prohibit compounding of interest during the term of deposit.

In addition, the amendment reduced the interest rate differential 

normally available to mutual savings 

banks on these instruments. This 

reduction applies when the average 

auction discount rate is greaterthan 

8-% percent and the differential is 

eliminated when the average auction rate is 9 percent or greater.

Part 329 wasfurtheramended on July 

1, 1 979, in response to the problem 

of the relatively low return small

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132 FEDERAL DEPOSIT INSURANCE CORPORATION

savers were receiving under the existing interest rate structure. The maximum rate of interest on passbook 

savings accounts was increased 1 /4 

of one percent for both commercial 

banks (to 5 V a percent) and thrift 

institutions (to 5 Vi percent). A new 

deposit category was established 

for time deposits with maturities of 4 

years or more. The rate ceiling on 

these deposits was based on the 

yield for 4-year government securities as determined each month by 

theTreasury Department. Also, institutions were authorized to set their 

own minimums for consumer-type 

time deposits, except for the $ 10,000 

minimum required for money market certificates. And finally, early 

withdrawal penalties in all deposit 

categories were established for new 

certificates issued or renewed after 

July 1.

In conjunction with the above changes, 

the FDIC issued a statement of policy clarifying the authority of banks to 

accept deposits that have been 

pooled by depositors to reach a minimum denomination requirement, but 

prohibiting institutions from soliciting, advertising or promoting pooled 

deposits in any way.

Part 329 also was amended to 

provide for the waiver of penalties for 

early withdrawal of a time deposit in 

the event a depositor dies or is declared mentally incompetent. In addition, the new withdrawal penalties 

which became effective on July 1 

were extended to all time deposits, 

irrespective of date. The ceiling rate 

of interest payable on time deposits 

with maturities of between 30 and 

89 days was increased from 5 percent to 51/4 percent, making it equal 

to the rate available on passbook 

savings accounts. Also, repurchase 

agreements (RPs) of less than $ 100,000 

with maturities of 90 days or more 

were made subject to interest rate 

ceilings. To prevent undue hardship, 

a 3-year phaseout period was provided. During this period, banks are

permitted to continue issuing such 

RPs without regard to interest rate 

ceilings so long as the total amount 

outstanding does not exceed the 

amount outstanding on August 1, 

1979. This amendment took effect 

on July 30, 1 979.

Effective January 1,1 980, the FDIC 

amended its regulations pertaining 

to time deposits. Pursuant to these 

revisions the existing 4-year floatingrate time deposit was replaced by a 

new floating-rate certificate with a 

maturity of 2Vi years and a rate tied 

to the yield on Treasury securities 

maturing in 21/2years. For thrift institutions, the ceiling rate is 50 basis 

points below the 2Vi year Treasury 

rate while for banks the ceiling rate 

is 75 basis points below the Treasury rate. There are no minimum deposit requirem ents and com ­

pounding of interest is permitted.

Another change increased by 1 /4 

of a percentage point the ceiling on 

deposits maturing in 90 days to 1 

year. The final amendment authorized banks to pay the same rate as 

thrifts when IRA/Keogh and governmental unit funds are deposited in 

the new 2Vi year or more certificates. Banks also may pay the same 

rate as thrifts on IRA/Keogh and governmental unit deposits of $ 10,000 or 

more placed in 26-week money market certificates regardless of the 

level of the Treasury bill rate.

Recordkeeping and Confirmation

Requirements for Securities Transactions (Part 344). The FDIC 

adopted, effective January 1, 1 980, 

new rules establishing uniform standards for bank recordkeeping, confirmation, and other procedures in 

making securities transactions for 

trust departments and other bank 

customers. This action was taken 

after a study by the Securities and 

Exchange Commission on banksecurities activities and responds to certain recommendations in the SEC 

report. The final rules were adopted 

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Federal Reserve Bank of St. Louis
RULES AND REGULATIONS 133

ments received on proposals published in January 1 978 and revised 

proposals published in November. 

The final rules were substantially 

unchanged from the November proposals.

International Banking Act of 1978

(Part 346). On June 28, 1979, the 

FDIC issued final regulations implementing section 6 of the International Banking Act of 1978. These 

regulations provide for Federal deposit insurance coverage of United 

States branches of foreign banks 

and, in some cases, require insurance. Section 6 also amends the 

Federal Deposit Insurance Act to 

establish special requirements for 

branches that are insured by the 

FDIC.

Foreign Activities of Insured State

Nonmember Banks(Part 347) Effective 

May 30,1979, the FDIC adopted new 

regulations implementing theforeign 

banking requirements in FIRIRCA. 

Under the new regulations, any insured State nonmember bank must 

obtain the consent of the FDIC before establishing its first branch in a 

foreign country or before acquiring 

any ownership interest in a foreign 

bank or other foreign financial entity. The bank must provide 30 days' 

notice to the FDIC concerning its 

intent to relocate an existing foreign 

branch or to increase the number of 

foreign branches in a country where 

it has an authorized foreign branch.

The FDIC also must be notified 

when a foreign branch is closed. In 

addition, the regulations require banks 

to maintain a system of records, 

controls, and reports on their foreign activities.

Management Official Interlocks (Part

348). The Depository Institution Management Interlocks Act was enacted 

as Title II of FIRIRCA. The general 

purpose of the Interlocks Act and 

this Part is to foster competition 

among depository institutions.

Tothisend.a management official 

of a depository institution (bank.

savings and loan association, mutual savings bank or credit union) or 

depository holding company is generally prohibited from also serving 

as a management official of another 

depository institution or depository 

holding company if the two organizations: (1) are not affiliated and (2) 

are very large or are located in the 

same local area. The regulations 

provide for specific exemptions from 

the above prohibitions, but prior 

FDIC approval is required.

Correspondent Accounts and Disclosure of Material Facts (Part 349

and 304). On March 10, 1979, Title 

VIII (Correspondent Accounts) and 

Title IX (Disclosure of Material 

Facts) of FIRIRCA became effective.

Title IX contains provisions that 

specify what information must be 

reported by insured banks to the 

Federal banking agencies regarding 

loans by the bank to its own executive officers and principal shareholders (but not directors) under 

Title I of FIRIRCA. Title I and Federal 

Reserve Board Regulation 0, which 

implements it, are applicable to insured State nonmember banks in 

the same manner and to the same 

extent as if they were State member 

banks. Under Title IX, insured State 

nonmember banks will report to the 

FDIC. The FDIC has promulgated 

section 304.4 of Part 304 to implement the reporting requirements of 

Title IX.

Title VIII, in part, prohibits preferential loans to executive officers and 

principal shareholders of a bank 

from its correspondent banks, and 

requires such persons to report to 

their bank's board of directors on 

their indebtedness (and indebtedness of their related interests) to the 

bank's correspondent banks. The FDIC 

has promulgated Part 349 to implement the reporting requirements (not 

the prohibitions) of Title VIII. Both 

sections 304.4 and Part 349 took 

effect on December 31, 1979.

The FDIC, in conjunction with the

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

Board of Governors of the Federal 

Reserve System and the Comptroller 

of the Currency, has developed two 

forms for use by executive officers, 

principal shareholders and banks in 

complying with the reporting requirements of Titles VIII and IX of FIRIRCA.

Form FFIEC 004 (Report on Indebtedness of Executive Officers and Principal Shareholders and Their Related Interests to Correspondent Banks) 

is a recommended form for use by 

executive officers and principal shareholders to report to the board of 

directors of their bank on their indebtedness (and that of their related 

interests) to correspondent banks, 

as required by Title VIII and Part 349 

of FDIC's regulations. FFIEC 004 (or 

a similar form) is to be submitted by 

executive officers and principal shareholders to their banks by January 

31, of each year.

Each executive officer and principal shareholder (reporting persons) 

filing FFIEC 004 must indicate on 

the form the name of the reporting 

person, the name of the bank to 

which the report is submitted, and 

the name and address of the correspondent bank to which the person or 

related interest is indebted.

Form FFIEC 003 (Report on Ownership of the Reporting Bank and on 

Indebtedness of its Executive Officers and Principal Shareholders to 

the Reporting Bank and to its Correspondent Banks) is the form required by Title IX and section 304.4 

of Part 304 of the FDIC's regulations 

for use by insured State nonmember 

banks in reporting to FDIC on the 

aggregate direct indebted ness of executive officers, principal shareholders and their related interests to 

the bank under Title I of FIRIRCA, as 

required by Title IX. FFIEC 003 also 

is used by the banks to report to 

FDIC on the aggregate indebtedness 

of these persons and their related 

interests to correspondent banks as 

reported under Title VIII. A consolidated form has been adopted so that

a bank need file only one form with 

FDIC in order to comply with the 

reporting requirements of both Titles 

VIII and IX. The law requires that this 

information be made publicly available by the banks and by the FDIC.

Limits on Loans to Executive Officers, Directors and Principal Shareholders (Regulation 0). Section 22(h), 

relating to limits on loans to executive officers, directors, and principal 

shareholders of member banks, was 

added to the Federal Reserve Act by 

FIRIRCA, which further provides that 

the provisions of section 22(h) are 

applicable to nonmember insured 

banks as well as to State member 

banks.

Section 22(h) limits loans to executive officers, principal shareholders and their related interests to 

10 percent of the bank's capital and 

unimpaired surplus and prohibits 

the payment of an overdraft of an 

executive officer or director. It also 

requires that every extension of credit 

by a bank to any of its executive 

officers, directors, or principal shareholders and their related interests 

be made on "substantially the same 

terms" as "comparable transactions 

with other persons." In addition, a 

majority of the entire board of directors of the bank must approve in 

advance an extension of credit to 

any of the above persons which 

exceeds $25,000.

Proposals to Simplify FDIC Rules

and Regulations. The FDIC policy 

statement on regulations provides 

for the review every 5 years of each 

existing regulation to determine if it 

should be continued, revised or eliminated. The first review is well underway. During 1979, the majority of 

the Corporation's existing regulations and one proposed regulation 

were reviewed. To date, 11 specific 

actions have been taken: six regulations (Parts 301, 302, 305, 306, 

325and 334) were eliminated. Aseventh, 

(Part 337) was substantially reduced by elimination of the insider

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Federal Reserve Bank of St. Louis
RULES AND REGULATIONS 135

transaction provisions. A proposed 

regulation (Part 340, relating to offering circular requirements for the 

public issuance of bank securities) 

was withdrawn and replaced by a 

substantially simplified policy statement; and proposals recommending 

the reduction or simplification of 

three other regulations were issued. 

Additional proposals to simplify and 

reduce other regulations currently 

are being drafted.

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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
STATISTICS OF BANKS

AND DEPOSIT INSURANCE 

PART FIVE

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Federal Reserve Bank of St. Louis
Table

Table

Table

Table

Table

GO

00

NUMBER OF BANKS AND BRANCHES m

o

m

101. Changes in number and classification of banks and branches in the United States (States and >

other areas) during 1 979 o

m

102. Changes in number of commercial banks and branches in the United States (States and other §

areas) during 1979, by State q

103. Number of banking offices in the United States (States and other areas), December 31, 1979 z

Banks grouped by insurance status and class of bank, and by State or area and type of office c

104. Number and assets of all commercial and mutual savings banks in the United States (States z

and other areas), December 31,1979 m

Banks grouped by class and asset size o

105. Number, assets, and deposits of all commercial banks in the United States (States and other

areas), December 31, 1979 §

Banks grouped by asset size and State h

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Federal Reserve Bank of St. Louis
Banks: 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;

A regulated certificated bank in Georgia; government-operated banks in 

North Dakota and Puerto Rico; a savings institution, known as a "trust company," operating under special charter in Texas; the Savings Banks Trust 

Company in New York; the Savings Bank and Trust Company Northwest 

Washington in the State of Washington; and branches of foreign banks 

engaged in a general deposit business in Illinois, Massachusetts, New York, 

Oregon, Pennsylvania, Washington, Guam, 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 saving 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 that 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 operates 

as rediscount banks and do not accept deposits except from financial 

institutions.

Branches: 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 that prohibit the operation of branches, such 

limited facilities are not considered branches within the meaning of State law.

NUMBER OF BANKS AND BRANCHES 139

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Federal Reserve Bank of St. Louis
Ta b le 101. CHANGES IN NUMBER AND CLASSIFICATION OF BANKS AND BRANCHES IN THE UNITED STATES 

(STATES AND OTHER AREAS) DURING 1979

All banks Commercial banks and nondeposit trust companies Mutual savings banks

Insured Noninsured

Type of change Total Insured

Noninsured Total Insured

Total

Members 

F.R. System

Not

members

Banks

of

Nondeposit

trust

Total Insured

Noninsured

National State

F.R.

System

deposit com -.

panies

ALL BANKING OFFICES

Number of offices, December 31,1979 ................................................... 54,928 53,996 932 51,590 51,156 23,307 5,856 21,993 330 104 3,338 2,840 498

Number of offices, December 31,1978 ................................................... 52,608 51,703 905 49,599 49,186 22,731 5,725 20,730 314 102 3,006 2,517 489

Net change during y e a r........................................................................... +2,320 +2,293 +27 +1,991 +1,970 +576 +131 +1,263 +16 +2 +332 +323 +9

Offices opened...................................................................................... 2,895 2,849 46 2,532 2,498 1,072 236 1,190 27 7 363 351 12

Banks ................................................................................................. 239 206 33 237 204 42 31 131 26 7 2 2 0

B ranches............................................................................................. 2,656 2,643 13 2,295 2,294 1,030 205 1,059 1 0 361 349 12

Offices closed ...................................................................................... 575 563 12 544 533 279 79 175 6 5 31 30 1

Banks ................................................................................................. 244 238 6 240 234 106 32 96 1 5 4 4 0

Branches ............................................................................................. 331 325 6 304 299 173 47 79 5 0 27 26 1

Changes in classification .................................................................. 0 +3 -3 0 +2 -2 1 7 -2 7 +246 - 2 0 0 +1 - 1

Among b a n k s ............................................................................. 0 0 0 0 0 - 5 2 - 2 3 +75 0 0 0 0 0

Among branches ............................................................................. 0 +3 - 3 0 +2 -1 6 5 - 4 +171 - 2 0 0 +1 -1

BANKS

Number of banks, December 31,1979 ..................................................... 15,201 14,688 513 14,738 14,364 4,448 977 8,939 282 92 463 324 139

Number of banks, December 31,1978 ................................................... 15,206 14,716 490 14,741 14,391 4,564 1,000 8,827 2603 903 465 325 140

Net change during y e a r........................................................................... - 5 -2 8 +23 - 3 -2 7 -1 1 6 -2 3 +112 +22 +2 - 2 - 1 - 1

Banks beginning o p e ra tio n ................................................................ 239 206 33 237 204 42 31 131 26 7 2 2 0

New banks ............... , ...................................................................... 235 206 29 233 204 42 31 131 22 7 2 2 0

Banks added to count .................................................................. 1 0 1 1 0 0 0 0 1 0 0 0 0

Financial institution becoming bank of deposit .......................... 3 0 3 3 0 0 0 0 3 0 0 0 0

Banks ceasing o p e ration..................................................................... 244 238 6 240 234 106 32 96 1 5 4 4 0

Absorptions, consolidations, and mergers .................................

Closed because of financial d ifficu lties ..........................................

235 235 0 231 231 106 32 93 0 0 4 4 0

1 1 0 1 1 0 0 1 0 0 0 0 0

Other liq u id atio n s............................................................................. 3 2 1 3 2 0 0 2 0 1 0 0 0

Discontinued deposit operations ................................................... 1 0 1

4

1 0 0 0 0 1 0 0 0 0

Banks deleted from co u n t................................................................ 4 0 4 0 0 0 0 0 4 0 0 0

Noninsured banks becoming in s u re d ............................................... 0 +4 - 4 0 +3 0 +1 +2 - 3 0 0 +1 -1

140 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Other changes in classification..............................................

National succeeding State b a n k ..........................................

State succeeding national bank ..........................................

Adm ission of insured bank to F.R. System ......................

Withdrawal from F.R. System with continued insurance .

Insured bank becoming noninsured bank ........................

Mutual savings bank converted to com m ercial b a n k ___

Changes not involving number in any class

Change in title .........................................................................

Change in location ................................................................

Change in title and location ................................................

Change in name of location ................................................

Change in location within c ity ..............................................

Change in corporate powers

Granted trust p o w e rs ..........................

BRANCHES

Number of branches, December 31,1979,.. 

Number of branches, December 31,1978

Net change during y e a r.

Branches opened for business ............................

Facilities designated by T re a s u ry ......................

Absorbed bank converted to b ra n ch .................

Branch replacing head office relocated ...........

New bra n che s.............................................. .. .

Branches and/or facilities added to count

Branches discontinued ..........................................

Facilities designated by Treasury ......................

Branches ................................................................

Branches and/or facilities deleted from count .

Other changes in classification..............................................

Branches changing class as a result of c o n v e rsio n .........

Branches of noninsured banks admitted to insurance .. . 

Branches transferred through absorption, consolidation,

or m e rg e r...........................................................................

Branches of insured banks withdrawing from F.R.S. .. .

Changes not involving number in any class

Changes in operating powers of b ra n ch e s ........................

Branches transferred through absorption, consolidation,

or m e rg e r...........................................................................

Changes in title, location, or name of lo ca tio n .................

0 0

0 0

0 0

0 0

0 0

0 0

0 0

294 293

29 25

10 10

10 8

215 211

48 48

39,727 39,308

37,402 36,987

+2,325 +2,321

2,656 2,643

2 2

220 220

33 33

2,079 2,074

322 314

331 325

3 3

238 234

90 88

0 +3

0 0

0 +1

0 +2

0 0

1

402

1

402

474 473

Includes noninsured nondeposit trust companies, members of the Federal Reserve System.

^Reflects all banks opened or closed but not previously included in count.

^ 1978 Bank or banch total adjusted from prior year.

t.Banks and branches opened prior to 1979 but not included in count as of December 31, 1978. 

Includes all branch entities established in a prior year but not previously included in count.

0 0 -5 2 -2 3 +75 0 0 0 0 0

0 0 +1 0 - 1 0 0 0 0 0

0 0 - 5 3 0 +53 0 0 0 0 0

0 0 0 +6 - 6 0 0 0 0 0

0 0 0 - 2 9 +29 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0

293 292 84 24 184 0 1 1 1 0

29 25 7 1 17 0 4 0 0 0

10 10 3 1 6 0 0 0 0 0

10 8 3 0 5 1 1 0 0 0

212 208 52 2 154 4 0 3 3 0

48 48 0 0 48 0 0 0 0 0

36,852 36,792 18,859 4,879 13,054 48 12 2,875 2,516 359

34,858 34,795 18,167 4,725 11,903 54 12 2,541 2,192 349

+1,994 +1,997 +692 +154 +1,151 - 6 0 +334 +324 +10

2,295 2,294 1,030 205 1,059 1 0 361 349 12

2 2 2 0 0 0 0 0 0 0

216 216 133 41 42 0 0 4 4 0

33 33 10 1 22 0 0 0 0 0

1,845 1,844 849 154 841 1 0 234 230 4

199 199 36 9 154 0 0 123 115 8

304 299 173 47 79 5 0 27 26 1

3 3 3 0 0 0 0 0 0 0

215 211 99 42 70 4 0 23 23 0

86 85 71 5 9 1 0 4 3 1

0 +2 -1 6 5 - 4 +171 - 2 0 0 +1 -1

0 0 -1 7 5 +9 +166 0 0 0 0 0

0 0 0 0 0 0 0 0 +1 -1

0 +2 + 10 +69 - 7 7 - 2 0 0 0 0

0 0 0 - 8 2 +82 0 0 0 0 0

1 1 1 0 0 0 0 0 0 0

402 374 272 20 82 0 0 28 28 0

474 448 213 40 195 0 0 26 25 1

NUMBER OF BANKS AND BRANCHES

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Federal Reserve Bank of St. Louis
Tab le 102. CHANGES IN NUMBER OF COMMERCIAL BANKS AND BRANCHES IN THE UNITED STATES 

(STATES AND OTHER AREAS) DURING 1979, BY STATE

State

In operation Net change 

during 1979

Beginning operation in 1979 Ceasing operation in 1979

Dec. 31, 1979 Dec. 31, 1978 Banks Branches Banks Branches

Banks Branches Banks Branches Banks Branches New Other New Other Absorptions Other Branches Other

Total United S ta te s................ 14,738 36,852 14,741 34,861 - 3 +1,991 233 4 2,044 251 231 9 215 89

50 States and D.C................... 14,708 0 14,711 0 - 3 0 231 4 0 0 230 8 0 0

Other a re a s ............................. 30 0 30 0 0 0 2 0 0 0 1 1 0 0

States

A la b a m a ................................... 317 578 312 553 +5 +25 7 0 27 2 2 0 3 1

Alaska ...................................... 12 109 12 112 NA - 3 0 0 1 0 0 0 2 2

A rizo n a ..................................... 27 505 28 484 - 1 +21 2 0 23 0 0 3 2 0

Arkansas ................................. 261 393 262 372 - 1 +21 0 0 21 2 1 0 2 0

C a lifo rn ia ................................. 257 4,090 244 3,906 +13 + 184 24 0 190 12 11 0 13 5

Colorado ............................... 410 97 394 81 +16 +16 17 0 14 2 0 1

0

0 0

Connection ............................. 65 593 65 587 0 +6 1 0 12 1

0

1

0

7 0

Delaware ................................. 20 147 19 147 + 1 0 1 0 2 0 2 0

District of C o lu m b ia ............... 17 140 17 138 NA +2 0 0 3 0 0 0 1 0

Florida ..................................... 585 946 617 743 - 3 2 +203 12 0 162 44 44 0 2 1

Georgia ................................... 439 829 440 786 - 1 +43 0 0 48 2 1

0

0 4 3

Hawaii ..................................... 12 163 11 160 +1 +3 1 0 3 0 0 0 0

Idaho ........................................ 27 236 24 228 +3 +8 3 0 8 0 0 0 0 0

Illinois ..................................... 1,288 452 1,277 394 +11 +58 15 1 59 5 4 1 5 1

In d iana ..................................... 406 1,082 406 1,035 0 +47 1 0 47 1 1 0 0 1

Io w a .......................................... 657 538 657 500 NA +38 0 0 49 0 0 0 9 2

Kansas ..................................... 617 254 617 256 0 - 2 1 0 22 1 0 1

0

1 24

Kentucky ................................. 343 697 344 644 - 1 +53 1 0 53 2 2 1 1

0

L o u isia n a ................................. 262 764 256 715 +6 +49 7 0 50 4 1 0 5

M a in e ........................................ 41 299 43 293 - 2 +6 0 0 5 2 2 0 0 1

Maryland ................................. 102 905 106 855 - 4 +50 1 0 49 5 5 0 2 2

M assachusetts ........................ 149 936 152 924 - 3 + 12 1 0 22 4 4 0 8 6

Michigan ................................. 372 2,001 365 1,793 +7 +208 8 0 210 2 1

0

0 2 2

Minnesota ............................... 762 227 761 176 +1 +51 2 0 50 1 1

0

0 0

M is sis sip p i............................... 183 666 185 635 - 2 +31 1 0 32 4 3 4 1

M is so u ri................................... 727 415 720 399 +7 +16 7 0 20 2 0 0 5 1

0 M ontana................................... 165 28 163 23 +2 +5 2 0 5 0 0 0 0

Nebraska ................................. 461 236 459 199 +2 +37 2 0 38 1 0 0 2 0

Nevada ..................................... 9 135 9 130 0 +5 1 0 4 1 1 0 0 0

New H a m p sh ire ...................... 79 148 79 135 0 +13 1 0 13 1 1 0 0 1

1 42 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
New Jersey .. 

New M exico .. 

New York 

North Carolina 

North Dakota .

O h io ...............

Oklahoma

O re g o n ...........

Pennsylvania . 

Rhode Island . 

South Carolina 

South Dakota . 

Tennessee . . .

V e rm o n t....................

Virginia ......................

W a sh in g to n .............

West V irg in ia ...........

W isconsin ...............

W y o m in g ..................

Other areas

Pacific Is la n d s .........

Canal Zone .............

Puerto Rico .............

Virgin Isla n d s ...........

176 1,554 184

87 238 87

302 3,389 298

83 1,723 89

175 123 174

408 2,106 482

496 248 485

80 551 63

378 2,479 378

17 231 17

85 687 87

155 158 156

352 992 350

1,427 234 1,401

76 273 68

30 159 30

234 1,372 263

110 884 103

235 59 231

636 500 633

94 3 88

4 25 3

0 2 0

20 229 21

6 24 6

1,535 - 8 + 19

227, NA +11

3,321 +4 +68

1,683 - 6 +40

117 +1 +6

1,941 - 7 4 +165

217 +11 +31

525 +17 +26

2,427 0 +52

226 NA +5

662 - 2 +25

149 - 1 +9

953 +2 +39

203 +26 +31

253 +8 +20

147 NA +12

1,302 - 2 9 +70

785 +7 +99

56 +4 +3

444 +3 +56

3 +6 NA

24 +1 + 1

2 0 NA

232 - 1 - 3

24 NA 0

\ 1978 Branch total adjusted.

Canal Zone became a part of the Republic of Panama on October 1, 1979. 

NA = No activity

1 0 25 8

0 0 11 0

8 3 111 7

1 0 49 8

1 0 6 1

2 0 100 77

11 0 31 0

17 0 28 0

3 0 64 3

0 0 5 0

0 0 25 3

1 0 6 3

3 0 49 0

28 0 33 1

9 0 19 1

0 0 12 0

7 0 53 36

7 0 100 0

4 0 4 0

3 0 66 0

6 0 0 0

1 0 1 0

0 0 0 0

1 0 2 2

0 0 2 0

9 0 12 2

0 0 0 0

7 0 39 11

7 0 13 4

0 0 1 0

76 0 7 5

0 0 0 0

0 0 2 0

3 0 10 5

0 0 0 0

2 0 3 0

2 0 0 0

0 1 9 1

2 0 3 0

1 0 0 0

0 0 0 0

36 0 14 5

0 0 0 1

0 0 1 0

0 0 10 0

0 0 0 0

0 0 0 0

0 0 0 0

1 1 7 0

0 0 2 0

NUMBER OF BANKS AND BRANCHES 143

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Federal Reserve Bank of St. Louis
Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES, (STATES AND OTHER AREAS),

DECEMBER 31, 1979

G RO UPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

State and type of bank 

or office

All banks Commercial banks and nondeposit trust companies Mutual savings banks Percentage insured1

Total Insured

Noninsured Total

Insured Noninsured

Total Insured

Noninsured

All

banks

of

deposit

Commercial

banks

of

deposit

Mutual

savings

banks

Total

Members F.R. 

System

Nonmembers

F.R.

System

Banks 

of dep o sit

Nondeposit

trust

com-_

pames

National State

United States— all o ffice s............................................... 54,928 53,996 932 51,590 51,156 23,307 5,856 21,993 330 104 3,338 2,840 498 98.3 99.2 85.1

Banks ............................................................................ 15,201 14,688 513 14,738 14,364 4,448 977 8,939 282 92 463 139 96.6 97.5 70.0

Unit Banks.................................................................. 8,206 7,831 375 8,148 7,800 2,166 490 5,144 264 84 58 31 293 27 95.4 95.7 53.4

Banks operating branches......................................... 6,995 6,857 138 6,590 2,282 487 3,795 8 405 112 98.0 $■§ 72.3

Branches3........................................................................ 39,727 39,308 419 36,852 36792 18,859 4,879 13,054 48 12 2,875 2,516 359 98.9 99.8 87.5

50 States & D.C.— all offices ......................................... 54,618 53,712 906 51,280 50,872 23,246 5,856 21,770 306 102 3,338 2,840 498 98.3 99.2 85.1

Banks ............................................................................ 15,171 14,675 496 14,708 14,351 4,448 977 8,926 267 90 463 324 139 96.7 97.6 70.0

Unit Banks.................................................................. 8,187 7,827 360 8,129 7,796 2,166 490 5,140 251 82 58 31 27 95.6 95.9 53.4

Banks operating branches.........................................

Branches3 ......................................................................

6,984 6,848 136 6,579 6,555 2,282 487 3,786 16 8 405 293 112 98.1 99.6 72.3

39,447 39,037 410 36,572 36,521 18,798 4,879 12,844 39 12 2,875 2,516 359 99.0 99.9 87.5

Other Areas— all offices ................................................. 310 284 26 310 284 61 0 223 24 2 0 0 0 91.6 91.6 0.0

Banks ............................................................................ 30 13 17 30 13 0 0 13 15 2 0 0 0 43.3 43.3 0.0

Unit Banks.................................................................. 19 4 15 19 4 0 0 4 13 2 0 0 0 21.1 21.1 0.0

Banks operating branches.........................................

Branches3 ......................................................................

11 9 2 11 9 0 0 . 9 2 0 0 0 0 81.8 81.8 0.0

280 271 9 280 271 61 0 210 9 0 0 0 0 96.8 96.8 0.0

STATE

Alabama— all offices........................................................ 895 895 0 895 895 456 50 389 0 0 0 0 0 100.0 100.0 0.0

Banks ............................................................................ 317 317 0 317 317 99 24 194 0 0 0 0 0 100.0 100.0 0.0

Unit Banks.................................................................. 147 147 0 147 147 32 14 101 0 0 0 0 0 100,0 100.0 0.0

Banks operating branches......................................... 170 170 0 170 170 67 10 93 0 0 0 0 0 100.0 100.0 0.0

Branches ........................................................................ 578 578 0 578 578 357 26 195 0 0 0 0 0 100.0 100.0 0.0

Alaska— all offices............................................................ 126 126 0 121 121 88 0 33 0 0 5 5 0 100.0 100.0 100.0

Banks ............................................................................ 14 14 0 12 12 6 0 6 0 0 2 2 0 100.0 100.0 100.0

Unit Banks.................................................................. 2 2 0 1 1 0 0 1 0 0 1 1 0 100.0 100.0 100.0

Banks operating branches......................................... 12 12 0 11 11 6 0 5 0 0 1 1 0 100.0 100.0 100.0

Branches ........................................................................ 112 112 0 109 109 82 0 27 0 0 3 3 0 100.0 100.0 100.0

Arizona— all offices.......................................................... 532 527 5 532 527 338 0 189 0 5 0 0 0 99.1 99.1 0.0

Banks ....................................... 27 22 5 27 22 3 0 19 0 5 0 0 0 81.5 81.5 0.0

Unit Banks.................................................................. 16 11 5 16 11 1 0 10 0 5 0 0 0 68.8 68.8 0.0

Banks operating branches......................................... 11 11 0 11 11 2 0 9 0 0 0 0 0 100.0 100.0 0.0

Branches ........................................................................ 505 505 0 505 505 335 0 170 0 0 0 0 0 100.0 100.0 0.0

1 44 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Arkansas— all offices...............

Banks ................................... Unit Banks......................... Banks operating branches.

Branches ...............................

California— all offices............

Banks ................................... Unit Banks.........................

Colorado— all offices..............

Banks ................................... Unit Banks......................... Banks operating branches.

Branches ...............................

Connecticut— all offices ........

Banks ................................... Unit Banks......................... Banks operating branches.

Branches ...............................

Delaware— all o ffice s............

Banks ................................... Unit Banks......................... Banks operating branches.

Branches ...............................

Dist. of Col.— all office s ........

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

654 651 3 654 651 253

261 258 3 261 258 68 105 102 3 105 102 15 156 156 0 156 156 53

393 393 0 393 393 185

4,347 4,323 24 4,347 4,323 2,764

257 242 15 257 242 42 86 77 9 86 77 13 171 165 6 171 165 29

4,090 4,081 9 4,090 4,081 2,722

507 404 103 507 404 197

410 307 103 410 307 139 333 230 103 333 230 93 77 77 0 77 77 46

97 97 0 97 97 58

1,052 1,052 0 658 658 221

130 130 0 65 65 19

15 15 0 11 11 3

115 115 0 54 54 16

922 922 0 593 593 202

193 191 2 167 165 11

22 20 2 20 18 6

9 7 2 9 7 2

13 13 0 11 11 4

171 171 0 147 147 5

157 157 0 157 157 154

17 17 0 17 17 16 4 4 0 4 4 4

13 13 0 13 13 12

140 140 0 140 140 138

1,531 1,523 8 1,531 1,523 641

585 577 8 585 577 221 235 227 8 235 227 80 350 350 0 350 350 141

946 946 0 946 946 420

1,268 1,268 0 1,268 1,268 428

439 439 0 439 439 63

185 185 0 185 185 10 254 254 0 254 254 53

829 829 0 829 829 365

175 169 6 175 169 14

12 9 3 12 9 3

2 1 1 2 1 1

10 8 2 10 8 2

163 160 3 163 160 11

25 373 1 2 0 0 0 99.5 99.5 0.0

6 184 1 2 0 0 0 98.9 98.9 0.0 1 86 1 2 0 0 0 97.1 97.1 0.0 5 98 0 0 0 0 0 100.0 100.0 0.0

19 189 0 0 0 0 0 100.0 100.0 0.0

377 1,182 0 24 0 0 0 99.4 99.4 0.0

7 193 0 15 0 0 0 94.2 94.2 0.0 0 64 0 9 0 0 0 89.5 89.5 0.0 7 129 0 6 0 0 0 96.5 96.5 0.0

370 989 0 9 0 0 0 99.8 99.8 0.0

33 174 103 0 0 0 0 79.7 79.7 0.0

27 141 103 0 0 0 0 74.9 74.9 0.0 23 114 103 0 0 0 0 69.1 69.1 0.0 4 27 0 0 0 0 0 100.0 100.0 0.0

6 33 0 0 0 0 0 100.0 100.0 0.0

87 350 0 0 394 394 0 100.0 100.0 100.0

2 44 0 0 65 65 0 100.0 100.0 100.0 0 8 0 0 4 4 0 100.0 100.0 100.0 2 36 0 0 61 61 0 100.0 100.0 100.0

85 306 0 0 329 329 0 100.0 100.0 100.0

0 154 0 2 26 26 0 99.0 98.8 100.0

0 12 0 2 2 2 0 90.9 90.0 100.0 0 5 0 2 0 0 0 77.8 77.8 0.0 0 7 0 0 2 2 0 100.0 100.0 100.0

0 142 0 0 24 24 0 100.0 100.0 100.0

0 3 0 0 0 0 0 100.0 100.0 0.0

0 1 0 0 0 0 0 100.0 100.0 0.0 0 0 0 0 0 0 0 100.0 100.0 0.0 0 1 0 0 0 0 0 100.0 100.0 0.0

0 2 0 0 0 0 0 100.0 100.0 0.0

70 812 1 7 0 0 0 99.5 99.5 0.0

28 328 1 7 0 0 0 98.6 98.6 0.0 15 132 1 7 0 0 0 96.6 96.6 0.0 13 196 0 0 0 0 0 100.0 100.0 0.0

42 484 0 0 0 0 0 100.0 100.0 0.0

86 754 0 0 0 0 0 100.0 100.0 0.0

9 367 0 0 0 0 0 100.0 100.0 0.0

2 173 0 0 0 0 0 100.0 100.0 0.0 7 194 0 0 0 0 0 100.0 100.0 0.0

77 387 0 0 0 0 0 100.0 100.0 0.0

0 155 0 6 0 0 0 96.6 96.6 0.0

0 6 0 3 0 0 0 75.0 75.0 0.0 0 0 0 1 0 0 0 50.0 50.0 0.0 0 6 0 2 0 0 0 80.0 80.0 0.0

0 149 0 3 0 0 0 98.2 98.2 0.0

NUMBER OF BANKS AND BRANCHES 1 4 5

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. N U M B E R O F B A N K I N G O F F I C E S IN T H E U N I T E D S T A T E S , ( S T A T E S A N D O T H E R A R E A S ) , 

D E C E M B E R 31, 1 9 7 9 - C O N T I N U E D 

G RO UPED 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 Percentage insured1

Insured Noninsured

All

banks

of

deCommercial

banks

of

State and type of bank 

or office Total Insured

NonInsured Total Total

Members F.R. 

System

Nonmembers

Banks 

of de-_

Nondeposit

trust

companies

Total Insured

Noninsured

Mutual

savings

banks

National State

F.R.

System

p o sir posit deposit

Idaho— all offices .......................................................... 263 263 0 263 263 191 10 62 0 0 0 0 0 100.0 100.0 O.b

Banks ..................................................... 27 27 0 27 27 7 4 16 0 0 0 0 0 100.0 100.0 0.0 0.0 0.0

0.0

Unit Banks ............................................................ 7 7 0 7 7 1 2 4 0 0 0 0 0 100.0 100.0 100.0 Banks operating branches......................................... 20 20 0 20 20 6 2 12 0 0 0 0 0 100.0

Branches ............................................. 236 236 0 236 236 184 6 46 0 0 0 0 0 100.0 100.0

Illinois all offices ........................................................ 1,740 1,702 38 1,740 1,702 621 89 992 32 6 0 0 0 97.8 97.8

97.0 95.9

0.0

0.0 0.0 0.0

Banks ............................................... 1,288 1,250 38 1,288 1,250 410 62 778 32 6 0 0 0 97.0

Unit Banks ........................................... 924 886 38 924 886 247 43 596 32 6 0 0 0 95.9

Banks operating branches ................................. 364 364 0 364 364 163 19 182 0 0 0 0 0 100.0 100.0

Branches ................................................... 452 452 0 452 452 211 27 214 0 0 0 0 0 100.0 100.0 0.0

Indiana— all offices.......................................................... 1,495 1,493 2 1,488 1,486 647 73 766 1 1 7 7 0 99.9 99.9 100.0

100.0 100.0 100.0

100.0

Banks ................................................. 410 408 2 406 404 119 40 245 1 1 4 4 0 99.5 99.5 98.4 100.0

100.0

Unit Banks ..................................................... 125 123 2 123 121 25 19 77 1 1

0

2 2 0 98.4

100.0 Banks operating branches ..................................... 285 285 0 283 283 94 21 168 0 2 2 0

Branches ............................................... 1,085 1,085 0 1,082 1,082 528 33 521 0 0 3 3 0 100.0

Iowa all offices ................................................... 1,195 1,189 6 1,195 1,189 238 83 868 5 1 0 0 0 99.5 99.5

99.1 98.4

100.0

100.0

0.0

0.0 0.0 0.0

0.0

Banks ....................................................... 657 651 6 657 651 99 40 512 5 1 0 0 0

0

99.1 98.4 100.0

100.0

Unit Banks.................................................................. 383 377 6 383 377 48 23 306 5 1 0

0

0

0 Banks operating branches ..................................... 274 274 0 274 274 51 17 206 0 0 0

Branches ........................................................... 538 538 0 538 538 139 43 356 0 0 0 0 0

Kansas all offices ................................................. 871 870 1 871 870 274 24 572 1 0 0 0 0 99.9 99.9

99.8 99.8 100.0

100.0

0.0

0.0 0.0 0.0

0.0

Banks ..................................................... 617 616 1 617 616 148 19 449 1 0 0 0 0 99.8 99.8 100.0 Unit Banks ................................................. 477 476 1 477 476 97 15 364 1 0 0 0 0

0 Banks operating branches ................................... 140 140 0 140 140 51 4 85 0 0 0 0

Branches ............................................. 254 254 0 254 254 126 5 123 0 0 0 0 0 100.0

Kentucky all offices ..................................................... 1,040 1,039 1 1,040 1,039 345 99 595 1 0 0 0 0 99.9

99.7 99.2 100.0

99.9

99.7 99.2 100.0

100.0

0.0

0.0 0.0 0.0

0.0

Banks ....................................................... 343 342 1 343 342 79 9 254 1 0 0 0

0

0

Unit Banks ............................................... 124 123 1 124 123 17 3 103 1 0 0 0

Banks operating branches ..................................... 219 219 0 219 219 62 6 151 0 0 0 0 0

Branches ................................................. 697 697 0 697 697 266 90 341 0 0 0 0 0 100.0

146 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Louisiana— all office s............

Banks ................................... Unit Banks......................... Banks operating branches.

Branches ...............................

Maine— all offices...................

Banks ................................... Unit Banks......................... Banks operating branches.

Branches ...............................

Maryland— all offices ............

Banks ................................... Unit Banks......................... Banks operating branches.

Branches ...............................

Massachusetts— all offices . ..

Banks ................................... Unit Banks......................... Banks operating branches.

Branches .............................

M ichigan— all offices ............

Banks ................................... Unit Banks........................ Banks operating branches.

Branches ...............................

Minnesota— all offices ..........

Banks ................................... Unit Banks........................ Banks operating branches.

Branches ...............................

Mississippi— all offices..........

Banks ................................... Unit Banks......................... Banks operating branches.

Branches ...............................

Missouri— all offices...............

Banks ................................... Unit Banks......................... Banks operating branches.

Branches ...............................

Montana— all offices...............

Banks ................................... Unit Banks........................ Banks operating branches.

Branches ...............................

1,026 1,026 0 1,026 1,026 356

262 262 0 262 262 55 72 72 0 72 72 13 190 190 0 190 190 42

764 764 0 764 764 301

461 461 0 340 340 123

70 70 0 41 41 14 8 8 0 4 4 1 62 62 0 37 37 13

391 391 0 299 299 109

1,072 1,072 0 1,007 1,007 394

105 105 0 102 102 31 19 19 0 19 19 4

86 86 0 83 83 27

967 967 0 905 905 363

1,722 1,217 505 1,085 1,078 492

312 167 145 149 143 71 52 19 33 23 17 8 260 148 112 126 126 63

1,410 1,050 360 936 935 421

2,373 2,370 3 2,373 2,370 1,101

372 371 1 372 371 123 70 70 0 70 70 13 302 301 1 302 301 110

2,001 1,999 2 2,001 1,999 978

991 988 3 989 986 315

763 760 3 762 759 205 587 584 3 587 584 132 176 176 0 175 175 73

228 228 0 227 227 110

849 848 1 849 848 304

183 182 1 183 182 38 36 35 1 36 35 3

147 147 0 147 147 35

666 666 0 666 666 266

1,142 1,136 6 1,142 1,136 170

727 721 6 727 721 98 404 398 6 404 398 49 323 323 0 323 323 49

415 415 0 415 415 72

193 190 3 193 190 68

165 162 3 165 162 56 138 135 3 138 135 45 27 27 0 27 27 11

28 28 0 28 28 12

49 621 0 0 0 0 0 100.0 100.0

6 201 0 0 0 0 0 100.0 100.0 1 58 0 0 0 0 0 100.0 100.0 5 143 0 0 0 0 0 100.0 100.0

43 420 0 0 0 0 0 100.0 100.0

41 176 0 0 121 121 0 100.0 100.0

3 24 0 0 29 29 0 100.0 100.0 0 3 0 0 4 4 0 100.0 100.0

3 21 0 0 25 25 0 100.0 100.0

38 152 0 0 92 92 0 100.0 100.0

106 507 0 0 65 65 0 100.0 100.0

5 66 0 0 3 3 0 100.0 100.0 0 15 0 0 0 0 0 100.0 100.0 5 51 0 0 3 3 0 100.0 100.0

101 441 0 0 62 62 0 100.0 100.0

76 510 6 1 637 139 498 70.7 99.4

7 65 5 1 163 24 139 53.5 96.0 0 9 5 1 29 2 27 36.5 73.9 7 56 0 0 134 22 112 56.9 100.0

69 445 1 0 474 115 359 74.5 99.9

586 683 3 0 0 0 0 99.9 99.9

79 169 1 0 0 0 0 99.7 99.7 15 42 0 0 0 0 0 100.0 100.0 64 127 1 0 0 0 0 99.7 99.7

507 514 2 0 0 0 0 99.9 99.9

40 631 1 2 2 2 0 99.7 99.7

32 522 1 2 1 1 0 99.6 99.6 25 427 1 2 0 0 0 99.5 99.5 7 95 0 0 1 1 0 100.0 100.0

8 109 0 0 1 1 0 100.0 100.0

20 524 0 1 0 0 0 99.9 99.9

5 139 0 1 0 0 0 99.5 99.5 1 31 0 1 0 0 0 97.2 97.2 4 108 0 0 0 0 0 100.0 100.0 15 385 0 0 0 0 0 100.0 100.0

83 883 0 6 0 0 0 99.5 99.5

47 576 0 6 0 0 0 99.2 99.2

22 327 0 6 0 0 0 98.5 98.5 25 249 0 0 0 0 0 100.0 100.0

36 307 0 0 0 0 0 100.0 100.0

51 71 0 3 0 0 0 98.4 98.4

45 61 0 3 0 0 0 98.2 98.2 39 51 0 3 0 0 0 97.8 97.8 6 10 0 0 0 0 0 100.0 100.0

6 10 0 0 0 0 0 100.0 100.0

0.0

0.0

0.0

0.0

0.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

0.0

100.0

100.0

21.8

14.7 6.9 16.4

24.3

0.0

0.0

0.0

0.0

0.0

100.0

100.0

0.0

100.0

100.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

NUMBER OF BANKS AND BRANCHES 147

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES, (STATES AND OTHER AREAS), 

DECEMBER 31, 1979-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

All banks Commercial banks and nondeposit trust companies Mutual savings banks Percentage insured1

Total Insured

NonInsured Total

Insured Noninsured

Total Insured

Noninsured

All

banks

of

deposit

Commercial

banks

of

deposit

Mutual

savings

banks

Total

Members F.R. 

System

Nonmembers

F.R.

System

Banks 

of dep o sit

Nondeposit

trust

com-g

pames

National State

Nebraska— all offices ................................................. 697 690 7 697 690 290 10 390 0 7 0 0 0 99.0 99.0 0.0

Banks ............................................................................ 461 454 7 461 454 117 8 329 0 7 0 0 0 98.5 98.5 0.0 Unit Banks.................................................................. 380 373 7 380 373 79 7 287 0 7 0 0 0 98.2 98.2 0.0 Banks operating branches......................................... 81 81 0 81 81 38 1 42 0 0 0 0 0 100.0 100.0 0.0

Branches ........................................................................ 236 236 0 236 236 173 2 61 0 0 0 0 0 100.0 100.0 0.0

Nevada— all offices.......................................................... 144 144 0 144 144 107 24 13 0 0 0 0 0 100.0 100.0 0.0

Banks ............................................................................ 9 9 0 9 9 4 1 4 0 0 0 0 0 100.0 100.0 0.0

Unit Banl..................................................................... 3 3 0 3 3 1 0 2 0 0 0 0 0 100.0 100.0 0.0

Banks operating branches......................................... 6 6 0 6 6 3 1 2 0 0 0 0 0 100.0 100.0 0.0

Branches ........................................................................ 135 135 0 135 135 103 23 9 0 0 0 0 0 100.0 100.0 0.0

New Hampshire— all offices........................................... 306 305 1 227 226 130 7 89 0 1 79 79 0 99.7 99.6 100.0

Banks ............................................................................ 105 104 1 79 78 36 4 38 0 1 26 26 0 99.0 98.7 100.0

Unit Banks................................................................. 32 31 1 24 23 7 2 14 0 1 8 8 0 96.9 95.8 100.0

Banks operating branches......................................... 73 73 0 55 55 29 2 24 0 0 18 18 0 100.0 100.0 100.0

Branches ........................................................................ 201 201 0 148 148 94 3 51 0 0 53 53 0 100.0 100.0 100.0

New Jersey— all offices................................................... 1,932 1,932 0 1,730 1,730 1,077 237 416 0 0 202 202 0 100.0 100.0 100.0

Banks ............................................................................ 196 196 0 176 176 93 15 68 0 0 20 20 0 100.0 100.0 100.0

Unit Banks................................................................. 29 29 0 26 26 11 0 15 0 0 3 3 0 100.0 100.0 100.0

Banks operating branches......................................... 167 167 0 150 150 82 15 53 0 0 17 17 0 100.0 100.0 100.0

Branches ........................................................................ 1,736 1,736 0 1,554 1,554 984 222 348 0 0 182 182 0 100.0 100.0 100.0

New Mexico— all office s................................................. 325 324 1 325 324 163 20 141 0 1 0 0 0 99.7 99.7 0.0

Banks ............................................................................ 87 86 1 87 86 40 6 40 0 1 0 0 0 98.9 98.9 0.0

Unit Banks.................................................................. 21 20 1 21 20 10 2 8 0 1 0 0 0 95.2 95.2 0.0

Banks operating branches......................................... 66 66 0 66 66 30 4 32 0 0 0 0 0 100.0 100.0 0.0

Branches ........................................................................ 238 238 0 238 238 123 14 101 0 0 0 0 0 100.0 100.0 0.0

New York— all offices ..................................................... 4,958 4,864 94 3,691 3,597 1,661 1,596 340 88 6 1,267 1,267 0 98.1 97.5 100.0

Banks ............................................................................ 414 331 83 302 219 116 46 57 77 6 112 112 0 80.0 72.5 100.0

Unit Banks................................................................. 143 70 73 140 67 32 12 23 67 6 3 3 0 49.0 47.9 100.0

Banks operating branches......................................... 271 261 10 162 152 84 34 34 10 0 109 109 0 96.3 93.8 100.0

Branches^ ...................................................................... 4,544 4,533 11 3,389 3,378 1,545 1,550 283 11 0 1,155 1,155 0 99.8 99.7 100.0

1 48 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Banks ................................... Unit Banks........................ Banks operating branches.

Branches ...............................

North Dakota— all o ffic e s___

Banks ................................... Unit Banks........................ Banks operating branches.

Branches ...............................

Ohio— all offices .....................

Banks ................................... Unit Banks........................ Banks operating branches.

Branches ...............................

Oklahoma— all offices............

Banks ................................... Unit Banks........................ Banks operating branches.

Branches ...............................

Oregon— all o ffice s.................

Banks ................................... Unit Banks........................ Banks operating branches.

Branches3 .............................

Pennsylvania— all o ffice s___

Banks ................................... Unit Banks........................ Banks operating branches.

Branches3 .............................

Rhode Island— all o ffic e s___

Banks ................................... Unit Banks......................... Banks operating branches.

Branches ...............................

South Carolina— all offices . ..

Banks ................................... Unit Banks........................ Banks operating branches.

Branches ...............................

South Dakota— all o ffice s___

Banks ................................... Unit Banks........................ Banks operating branches.

Branches ...............................

1,806 1,795 11 1,806 1,795 862

83 82 1 83 82 26 15 15 0 15 15 3

68 67 1 68 67 23

1,723 1,713 10 1,723 1,713 836

298 295 3 298 295 85

175 172 3 175 172 41 98 95 3 98 95 16

77 77 0 77 77 25

123 123 0 123 123 44

2,514 2,513 1 2,514 2,513 1,519

408 407 1 408 407 177 118 117 1 118 117 35 290 290 0 290 290 142

2,106 2,106 0 2,106 2,106 1,342

744 737 7 744 737 376

496 489 7 496 489 190 366 359 7 366 359 116 130 130 0 130 130 74

248 248 0 248 248 186

650 642 8 631 623 345

82 77 5 80 75 6

39 35 4 39 35 1

43 42 1 41 40 5

568 565 3 551 548 339

3,067 3,054 13 2,857 2,844 1,661

387 376 11 378 367 223 114 104 10 114 104 73 273 272 1 264 263 150

2,680 2,678 2 2,479 2,477 1,438

323 310 13 248 235 122

23 20 3 17 14 5 3 2 1 3 2 0

20 18 2 14 12 5

300 290 10 231 221 117

772 772 0 772 772 365

85 85 0 85 85 18 20 20 0 20 20 1

65 65 0 65 65 17

687 687 0 687 687 347

313 312 1 313 312 131

155 154 1 155 154 33 104 103 1 104 103 20 51 51 0 51 51 13

158 158 0 158 158 98

7 926 11 0 0 0 0 99.4 99.4 0.0

2 54 1 0 0 0 0 98.8 98.8 0.0 1 11 0 0 0 0 0 100.0 100.0 0.0

1 43 1 0 0 0 0 98.5 98.5 0.0

5 872 10 0 0 0 0 99.4 99.4 0.0

6 204 1 2 0 0 0 99.0 99.0 0.0

3 128 1 2 0 0 0 98.3 98.3 0.0

1 78 1 2 0 0 0 96.9 96.9 0.0

2 50 0 0 0 0 0 100.0 100.0 0.0

3 76 0 0 0 0 0 100.0 100.0 0.0

559 435 1 0 0 0 0 100.0 100.0 0.0

93 137 1 0 0 0 0 99.8 99.8 0.0

30 52 1 0 0 0 0 99.2 99.2 0.0

63 85 0 0 0 0 0 100.0 100.0 0.0

466 298 0 0 0 0 0 100.0 100.0 0.0

19 342 5 2 0 0 0 99.1 99.1 0.0

17 282 5 2 0 0 0 98.6 98.6 0.0

15 228 5 2 0 0 0 98.1 98.1 0.0 2 54 0 0 0 0 0 100.0 100.0 0.0

2 60 0 0 0 0 0 100.0 100.0 0.0

6 111 7 1 19 19 0 98.8 98.7 100.0

5 64 4 1 2 2 0 93.9 93.8 100.0

4 30 3 1 0 0 0 89.7 89.7 0.0 1 34 1 0 2 2 0 97.7 97.6 100.0

1 208 3 0 17 17 0 99.5 99.5 100.0

195 988 11 2 210 210 0 99.6 99.5 100.0

12 132 9 2 9 9 0 97.2 97.1 100.0 3 28 8 2 0 0 0 91.2 91.2 0.0

9 104 1 0 9 9 0 99.6 99.6 100.0

183 856 2 0 201 201 0 99.9 99.9 100.0

0 113 12 1 75 75 0 96.0 94.8 100.0

0 9 2 1 6 6 0 87.0 82.4 100.0

0 2 0 1 0 0 0 66.7 66.7 0.0 0 7 2 0 6 6 0 90.0 85.7 100.0

0 104 10 0 69 69 0 96.7 95.7 100.0

18 389 0 0 0 0 0 100.0 100.0 0.0

7 60 0 0 0 0 0 100.0 100.0 0.0

2 17 0 0 0 0 0 100.0 100.0 0.0

5 43 0 0 0 0 0 100.0 100.0 0.0

11 329 0 0 0 0 0 100.0 100.0 0.0

43 138 0 1 0 0 0 99.7 99.7 0.0

27 94 0 1 0 0 0 99.4 99.4 0.0 18 65 0 1 0 0 0 99.0 99.0 0.0 9 29 0 0 0 0 0 100.0 100.0 0.0

16 44 0 0 0 0 0 100.0 100.0 0.0

NUMBER OF BANKS AND BRANCHES 149

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES, (STATES AND OTHER AREAS),

DECEMBER 31, 1979-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

All banks Commercial banks and nondeposit trust companies Mutual savings banks Percentage insured1

Total Insured

Noninsured Total

Insured Noninsured

Total Insured

Noninsured

All

banks

of

deposit

Commercial

banks

of

deposit

Mutual

savings

banks

Total

Members F.R. 

System

Nonmembers

F.R.

System

Banks 

of dep o sit

Nondeposit

trust

companies

National State

Tennessee— all offices ................................................... 1,344 1,342 2 1,344 1,342 480 60 802 1 1 0 0 0 99.9 99.9 0.0

Banks ............................................................................ 352 350 2 352 350 69 10 271 1 1 0 0 0 99.4 99.4 0.0

Unit Banks.................................................................. 86 84 2 86 84 6 1 77 1 1 0 0 0 97.7 97.7 0.0

Banks operating branches......................................... 266 266 0 266 266 63 9 194 0 0 0 0 0 100.0 100.0 0.0

Branches ........................................................................ 992 992 0 992 992 411 50 531 0 0 0 0 0 100.0 100.0 0.0

Texas— all offices ............................................................ 1,661 1,656 5 1,661 1,656 669 58 929 5 0 0 0 0 99.7 99.7 0.0

Banks ............................................................................ 1,427 1,422 5 1,427 1,422 615 41 766 5 0 0 0 0 99.6 99.6 0.0

Unit Banks.................................................................. 1,223 1,218 5 1,223 1,218 568 27 623 5 0 0 0 0 99.6 99.6 0.0 Banks operating branches......................................... 204 204 0 204 204 47 14 143 0 0 0 0 0 100.0 100.0 0.0

Branches ........................................................................ 234 234 0 234 234 54 17 163 0 0 0 0 0 100.0 100.0 0.0

Utah— all offices .............................................................. 349 347 2 349 347 132 114 101 0 2 0 0 0 99.4 99.4 0.0

Banks ............................................................................ 76 74 2 76 74 11 16 47 0 2 0 0 0 97.4 97.4 0.0 Unit Banks................................................................. 48 46 2 48 46 7 9 30 0 2 0 0 0 95.8 95.8 0.0 Banks operating branches......................................... 28 28 0 28 28 4 7 17 0 0 0 0 0 100.0 100.0 0.0

Branches ........................................................................ 273 273 0 273 273 121 98 54 0 0 0 0 0 100.0 100.0 0.0

Vermont— all office s....................................................... 222 221 1 189 188 56 1 131 0 1 33 33 0 99.5 99.5 100.0

Banks ............................................................................ 36 35 1 30 29 12 1 16 0 1 6 6 0 97.2 96.7 100.0

Unit Banks.................................................................. 9 8 1 8 7 4 1 2 0 1 1 1 0 88.9 87.5 100.0

Banks operating branches......................................... 27 27 0 22 22 8 0 14 0 0 5 5 0 100.0 100.0 100.0

Branches ........................................................................ 186 186 0 159 159 44 0 115 0 0 27 27 0 100.0 100.0 100.0

Virginia— all offices......................................................... 1,606 1,605 1 1,606 1,605 697 607 301 0 1 0 0 0 99.9 99.9 0.0

Banks ............................................................................ 234 233 1 234 233 72 78 83 0 1 0 0 0 99.6 99.6 0.0

Unit Banks................................................................. 61 60 1 61 60 10 29 21 0 1 0 0 0 98.4 98.4 0.0

Banks operating branches......................................... 173 173 0 173 173 62 49 62 0 0 0 0 0 100.0 100.0 0.0

Branches ....................................................................... 1,372 1,372 0 1,372 1,372 625 529 218 0 0 0 0 0 100.0 100.0 0.0

Washington— all offices ................................................. 1,187 1,177 10 994 984 636 8 340 9 1 193 193 0 99.2 99.0 100.0

Banks ............................................................................ 120 110 10 110 100 21 4 75 9 1 10 10 0 91.7 90.9 100.0

Unit Banks................................................................. 42 32 10 42 32 2 3 27 9 1 0 0 0 76.2 76.2 0.0

Banks operating branches......................................... 78 78 0 68 68 19 1 48 0 0 10 10 0 100.0 100.0 100.0

Branchess ...................................................................... 1,067 1,067 0 884 884 615 4 265 0 0 183 183 0 100.0 100.0 100.0

1 50 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 .....................................

Wisconsin— all offices...................

Banks ......................................... Unit Banks............................... Banks operating branches....

Branches .....................................

Wyoming— all offices ...................

Banks ......................................... Unit Banks................................ Banks operating branches........

Branches .....................................

OTHER AREAS 

Pacific Is.— all offices4 ................

Banks ....................................... Unit Banks................................ Banks operating branches....

Branchess ...................................

Canal Zone— all offices................

Banks ......................................... Unit Banks.................................

Banks operating branches........

Branches6 ...................................

Puerto Rico— all offices ...............

Banks ......................................... Unit Banks................................. Banks operating branches........

Branches 7 ...................................

— all offices..............

Unit Banks...................... Banks operating branches

Branchess ...........................

Virgin Islands

Banks ___

35 123 0 0 0 0 0 100.0 100.0 0.0

29 99 0 0 0 0 0 100.0 100.0 0.0 23 75 ' 0 0 0 0 0 100.0 100.0 0.0 6 24 0 0 0 0 0 100.0 100.0 0.0

6 24 0 0 0 0 0 100.0 100.0 0.0

49 788 0 5 3 3 0 99.6 99.6 100.0

27 473 0 5 3 3 0 99.2 99.2 100.0

18 292 0 5 3 3 0 98.8 98.7 100.0 9 181 0 0 0 0 0 100.0 100.0 ° 0

22 315 0 0 0 0 0 100.0 100.0 0.0

19 30 0 0 0 0 0 100.0 100.0 0.0

19 28 0 0 0 0 0 100.0 100.0 0.0

19 26 0 0 0 0 0 100.0 100.0 0.0 0 2 0 0 0 0 0 100.0 100.0 0.0

0 2 0 0 0 0 0 100.0 100.0 0.0 0 16 3 0 0 0 0 89.7 89.7 0.0

0 1 3 0 0 0 0 25.0 25.0 0.0 0 0 3 0 0 0 0 0.0 0.0 0.0 0 1 0 0 0 0 0 100.0 100.0 0.0

0 15 0 0 0 0 0 100.0 100.0 0.0 0 0 0 0 0 0 0 100.0 100.0 0.0

0 0 0 0 0 0 0 0.0 0.0 0.0 0 0 0 0 0 0 0 0.0 0.0 0.0 0 0 0 0 0 0 0 0.0 0.0 0.0

0 0 0 0 0 0 0 100.0 100.0 0.0 0 207 15 2 0 0 0 93.2 93.2 0.0

0 12 6 2 0 0 0 60.0 60.0 0.0 0 4 4 2 0 0 0 40.0 40.0 0.0 0 8 2 0 0 0 0 80.0 80.0 0.0 0 195 9 0 0 0 0 96.1 96.1 0.0

0 0

6 0 0 0 0 80.0 80.0 0.0

0 0 6 0 0 0 0 0.0 0.0 0.0 0 0 6 0 0 0 0 0.0 0.0 0.0 0 0 0 0 0 0 0 0.0 0.0 0.0

0 0 0 0 0 0 0 100.0 100.0 0.0

NUMBER OF BANKS AND BRANCHES

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES, (STATES AND OTHER AREAS), 

DECEMBER 31, 1979-C 0N T IN U E D 

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

' Nondeposit trust companies are excluded in computing these percentages.

29 noninsured branches ofjnsured banks are included with parent banks— 7 in the Pacific Islands and 2 

in the Canal Zone.

3 California— 1 branch operated by a state nonmember bank in Puerto Rico.

Massachusetts— 1 branch operated by a noninsured bank in New York.

New York— 18 branches operated by 3 state nonmember banks in Puerto Rico.

Oregon— 1 branch operated by a national bank in California.

Pennsylvania— 2 branches operated by a noninsured bank in New York and a national bank in New Jersey. 

Washington— 3 branches operated by a national bank in California.

4 United States possessions— American Samoa, Guam, Midway Islands and Northern Mariana Islands.

Trust Territories— Caroline Islands and Marshall Islands.

5Pacific Islands— 23 branches— Deposits are insured only where indicated.

American Samoa— 1 insured branch operated by a state nonmember bank in Hawaii.

Guam— 11 insured branches operated by 2 state nonmember banks in Hawaii, a State nonmember bank and a national bank in 

California and 2 national banks in New York.

Caroline Islands— 4 noninsured branches operated by a national bank in California and a state nonmember bank in Hawaii. 

Northen Mariana Islands— 4 insured branches operated by a national bank and a state nonmember bank in California and a state 

nonmember bank in Hawaii.

Marshall Islands— 3 noninsured branches operated by a national bank in California and a state 

nonmember bank in Hawaii.

6 Canal Zone— 2 noninsured branches operated by 2 national banks in New York. Branch deposits are not insurable in the Canal Zone.

Branches are listed with the parent bank.

7Puerto Rico— 25 insured branches operated by 2 national banks in New York, and a national bank in California.

8 Virgin Islands— 24 insured branches operated by 2 national banks in New York, a national bank in California, and a national bank in 

Pennsylvania.

’ includes noninsured nondeposit trust companies— members of Federal Reserve System.

1 52 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
T a b le 104. NUMBER AND ASSETS OF ALL COMMERCIAL AND MUTUAL SAVINGS BANKS 

IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1979 

BANKS GROUPED BY CLASS AND ASSET SIZE 

(In thousands of dollars)

Asset Size All

banks

Insured com m ercial banks Noninsured 

banks 

and trust 

companies

Mutual savings banks

Total

Members F.R. System

Nonmembers 

F. R. System

Insured

Noninsured

National State

Number of banks

Less than $5.0 m illion . . . 1,156 830 91 50 689 274 _ 52

$5.0 to 9.9 m illio n ............. 2,149 2,128 327 119 1,682 19 2

$10.0 to 24.9 m illion .... 4,760 4,728 1,249 293 3,186 17 10 5

$25.0 to 49.9 m illion ___ 3,418 3,371 1,201 227 1,943 7 23 17

$50.0 to 99.9 m illion ___ 1,874 1,764 760 115 889 8 81 21

$100.0 to 299.9 m illion .. 1,209 1,051 534 99 418 22 98 38

$300.0 to 499.9 m illion .. 218 171 85 17 69 7 35 5

$500.0 to 999.9 m illion .. 194 149 85 23 41 9 35 1

$1.0 to 4.9 b illio n ............. 193 144 98 24 22 11 38

$5.0 billion or more ......... 30 28 18 10 - - 2 -

Total b a n ks................ 15,201 14,364 4,448 977 8,939 374 324 139

(Inth ousands of dollars)

Amount of assets

Less than $5.0 m illion . . . 3,263,543 3,012,792 352,930 176,919 2,482,943 250,751 0 0

$5.0 to 9.9 million ........... 16,279,466 16,130,729 2,504,746 920,677 12,705,306 133,065 15,672 0

$10.0 to 24.9 m illion ___ 79,551,028 79,028,607 21,622,684 4,902,175 52,503,748 255,258 172,804 94,359

$25.0 to 49.9 m illion .... 121,095,454 119,247,370 43,000,644 8,006,554 68,240,172 255,266 940,016 652,802

$50.0 to 99.9 m illion ___ 130,293,111 122,154,540 52,825,552 8,017,858 61,311,130 621,925 5,942,598 1,574,048

$100.0 to 299.9 m illion .. 195,335,382 167,888,367 86,688,705 16,457,224 64,742,438 4,222,639 17,102,602 6,121,774

$300.0 to 499.9 m illion . . . 85,601,058 67,042,756 33,697,555 6,624,527 26,720,674 2,942,012 13,859,741 1,756,549

$500.0 to 999.9 m illion .. 132,270,318 100,060,098 58,499,271 15,147,430 26,413,397 5,672,005 25,990,916 547,299

$1.0 to 4.9 b illio n ............. 386,307,219 297,358,234 208,590,606 51,674,820 37,092,808 17,729,765 71,219,220 0

$5.0 billion or more 440,895,774 429,026,862 284,473,606 144,553,256 0 0 11,868,912 0

Total assets ............. 1,590,892,353 1,400,950,3551 792,256,299 256,481,440 352,212,616 32,082,686 147,112,481 10,746,831

1 Dom estic assets only; does not include assets of branches of U.S. banks in “ Other areas.’ ’

NUMBER OF BANKS AND BRANCHES 153

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 105. NUMBER, ASSETS, AND DEPOSITS OF ALL COMMERCIAL BANKS1 IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1979 

BANKS GROUPED BY ASSET SIZE AND STATE 

(Amounts in thousands of dollars)

Banks with assets of—

State

All

banks

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Total United States and 

other areas2

3,378 Banks ..................................... 14,738 1,104 2,147 4,745 1,772 1,071 178 157 153 33

Total assets3 .......................... 1,724,008,628 3,263,543 16,263,794 79,248,366 119,502,636 122,684,142 171,568,942 69,855,601 105,606,570 311,937,592 724,077,442

Total deposits3 ...................... 1,377,037,113 2,691,883 14,411,928 70,808,899 106,394,041 108,032,593 145,745,509 57,363,728 84,230,096 234,959,875 552,398,561

States

Alabama

Banks ..................................... 317 12 37 135 85 27 13 1 5 2 0

A sse ts..................................... 15,785,089 51,379 283,426 2,215,476 2,834,891 1,726,650 2,243,168 407,995 3,116,329 2,905,775 0

D ep osits................................. 13,450,183 42,296 249,723 1,971,297 2,509,161 1,540,939 1,952,060 352,245 2,545,282 2,287,180 0

Alaska

Banks ..................................... 12 0 0 0 2 5 3 1 1 0 0

A sse ts..................................... 1,980,618 0 0 0 73,500 347,156 517,623 437,565 604,774 0 0

D ep osits................................. 1,564,010 0 0 0 63,954 289,560 403,289 332,779 474,428 0 0

Arizona

Banks ..................................... 27 6 5 7 1 2 1 1 1 2 1

A sse ts..................................... 12,156,670 6,108 35,562 112,335 37,548 180,665 260,582 479,710 616,593 5,095,397 5,332,170

D ep osits................................. 10,346,952 796 29,322 98,471 34,715 156,828 235,730 425,111 538,436 4,490,170 4,337,373

Arkansas

Banks ..................................... 261 11 29 104 70 15 28 3 1 0 0

A sse ts..................................... 10,257,546 25,902 211,267 1,682,872 2,527,258 1,883,952 2,241,060 1,084,330 600,905 0 0

D ep osits .................................... 8,756,869 21,550 186,811 1,505,707 2,254,499 1,647,741* 1,921,831 791,820 426,910 0 0

California

Banks ..................................... 257 16 25 57 56 38 40 4 10 5 6

A sse ts..................................... 219,253,018 19,612 185,812 967,632 2,061,487 2,729,454 7,025,326 1,397,433 6,654,355 12,143,219 186,068,688

D eposits ................................ 177,782,960 7,086 142,907 823,327 1,806,362 2,419,747 6,277,297 1,162,832 5,785,548 9,989,224 149,368,630

Colorado

Banks ..................................... 410 110 57 128 59 31 21 0 0 2 2

Assets ................................... 15,145,608 284,168 424,083 2,096,004 2,144,665 2,133,243 3,067,958 0 1,646,581 3,348,906 0

D ep osits................................. 12,619,107 193,719 348,136 1,852,527 1,861,776 1,893,496 2,611,188 0 1,301,919 2,556,346 0

Connecticut

10 Banks ..................................... 65 1 2 20 18 6 0 4 4 0

Assets .................. 12,944,890 4,975 14,567 363,198 642,629 772,653 996,687 0 2,608,683 7,541,498 0

D ep osits................................. 10,802,700 4,445 12,682 318,311 564,673 678,651 830,121 0 2,252,736 6,141,081 0

Delaware

Banks ..................................... 20 2 2 6 3 1 2 1 2 1 0

A sse ts..................................... 3,678,731 3,082 12,250 86,616 88,036 69,481 300,941 459,359 1,266,439 1,392,527 0

D ep osits ................................ 2,746,869 1,908 10,803 78,420 76,116 61,079 97,039 404,321 1,076,220 940,963 0

District of Columbia

Banks ..................................... 17 0 0 4 2 3 3 0 3 2 0

A sse ts..................................... 7,815,939 0 0 61,004 98,605 169,459 373,179 0 2,123,535 4,990,157 0

D ep osits ................................ 6,353,506 0 0 51,425 85,183 147,961 319,574 0 1,715,468 4,033,895 0

1 54 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Florida

Banks ..................................... 585 17 40 166 154 100 86 14 7 1 0

A sse ts..................................... 42,190,749 41,281 310,021 2,922,035 5,580,150 7,032,247 13,538,349 5,427,292 4,465,723 2,873,651 0

D ep osits................................. 36,166,576 25,000 268,874 2,594,821 5,010,029 6,247,658 11,861,984 4,603,399 3,458,160 2,096,651 0

Gef f i ............................... 439 31 74 175 107 25 21 2 0 4 0

A sse ts..................................... 22,007,377 101,461 563,399 2,969,392 3,727,107 1,608,666 3,161,237 790,266 0 9,085,849 0

D ep o sits................................. 17,681,430 90,059 499,702 2,646,840 3,299,742 1,401,327 2,715,920 643,956 0 6,383,884 0

Hawaii

Banks ..................................... 12 0 1 3 1 0 3 2 0 2 0

A sse ts..................................... 4,923,877 0 6,209 53,190 37,085 0 552,200 756,750 0 3,518,443 0

D ep osits................................. 4,386,548 0 4,809 23,578 33,471 0 503,010 676,076 0 3,145,604 0

Idaho

Banks ..................................... 27 2 1 10 5 3 2 1 1 2 0

A sse ts..................................... 4,609,205 6,306 7,021 145,575 168,805 183,106 276,780 349,110 564,808 2,907,694 0

D ep osits................................. 3,904,198 3,209 5,904 130,226 152,622 150,204 243,155 294,784 478,389 2,445,705 0

Illinois

Banks ..................................... 1,288 87 179 427 277 177 120 12 3 2 4

A sse ts..................................... 135,839,141 261,562 1,353,425 7,059,256 10,037,308 12,420,037 18,979,266 4,725,525 1,797,621 3,572,102 75,633,039

D ep o sits................................. 103,072,156 219,669 1,202,231 6,320,759 8,876,699 10,676,424 15,164,668 3,262,911 906,925 2,676,596 53,765,274

Indiana

Banks ..................................... 406 5 33 117 116 72 49 8 3 3 0

A sse ts..................................... 30,510,757 9,680 255,955 2,097,839 4,132,171 5,056,815 7,626,919 3,105,432 1,853,135 6,372,811 0

D ep osits................................. 25,443,803 7,954 224,343 1,902,448 3,689,628 4,491,692 6,562,420 2,536,732 1,465,623 4,562,963 0

Iowa

Banks ..................................... 657 26 140267 155 44 20 3 2 0 0

A sse ts ..................................... 19,699,559 78,758 1,073,507 4,358,214 5,497,143 3,071,531 2,945,042 1,274,172 1,401,192 0 0

D ep osits................................. 17,037,523 69,428 965,090 3,924,042 4,913,597 2,711,421 2,466,096 976,525 1,011,324 0 0

Kansas

Banks ..................................... 617 89 162 200 106 44 13 2 1 0 0

A sse ts..................................... 15,289,420 293,310 1,176,730 3,238,155 3,706,816 2,929,534 2,292,277 823,104 829,494 0 0

D ep osits................................. 13,164,468 261,920 1,063,309 2,913,637 3,313,702 2,547,741 1,750,813 668,497 644,849 0 0

Kentucky

Banks ..................................... 343 21 35 119 99 41 21 3 2 2 0

A sse ts..................................... 17,878,453 76,532 283,990 1,971,124 3,424,750 2,795,733 2,775,126 1,173,376 1,557,602 3,820,220 0

D ep osits................................. 15,006,109 66,752 254,016 1,766,270 3,074,974 2,487,374 2,426,587 893,812 1,211,846 2,824,478 0

Louisiana

Banks ..................................... 262 6 19 65 83 51 23 7 6 2 0

A sse ts..................................... 21,810,824 23,384 156,818 1,166,939 3,084,541 3,412,639 4,119,361 2,900,234 4,192,060 2,754,848 0

D ep osits................................. 18,542,796 19,391 136,890 1,041,615 2,779,072 3,045,403 3,645,928 2,437,746 3,338,990 2,097,761 0

Maine

Banks ..................................... 41 0 2 7 15 10 4 3 0 0 0

A sse ts..................................... 3,221,582 0 15,249 110,703 479,940 661,023 810,221 1,144,446 0 0 0

D ep osits................................. 2,748,345 0 13,087 98,215 425,087 575,579 676,268 960,109 0 0 0

Maryland

Banks ..................................... 102 2 10 27 27 18 10 1 2 5 0

A sse ts..................................... 15,489,968 8,880 78,500 472,434 987,458 1,246,928 1,340,339 300,053 1,189,078 9,866,298 0

D ep osits................................. 12,989,067 5,625 69,267 422,168 880,827 1,115,607 1,203,095 265,077 993,776 8,033,625 0

Massachusetts

Banks ..................................... 149 6 4 37 29 34 26 4 4 4 1

A sse ts..................................... 32,264,127 9,512 28,513 625,679 1,060,243 2,451,058 4,013,583 1,556,828 2,325,966 7,818,752 12,373,993

D ep osits................................. 24,372,293 5,034 25,531 543,380 919,957 2,019,380 3,250,712 1,320,540 1,956,039 5,604,436 8,727,284

NUMBER OF BANKS AND BRANCHES 1 5 5

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Ta b le 105. N U M B E R , A S S E T S , A N D D E P O S I T S O F A L L C O M M E R C I A L B A N K S IN T H E U N I T E D S T A T E S ( S T A T E S A N D O T H E R A R E A S ) ,

DECEMBER 31, 1979-CO NTINUED 

BANKS GROUPED BY ASSET SIZE AND STATE 

(Amounts in thousands of dollars)

Banks with assets of—

State

All

banks

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Michigan

Banks ........................................ 372 6 24 98 104 67 53 6 5 8 1

A s s e ts ........................................ 50,219,073 19,630 192,852 1,684,806 3,701,222 4,724,083 8,976,355 2,353,788 2,950,818 16,599,997 9,015,522

D e p o s its ................................... 41,243,869 13,485 166,902 1,510,110 3,313,105 4,238,679 7,947,811 2,058,473 2,550,187 12,841,465 6,603,652

Minnesota

Banks ........................................ 762 62 208 283 131 54 18 3 0 3 0

A s s e ts ........................................ 28,412,590 232,737 1,550,231 4,665,008 4,598,047 3,747,297 2,746,220 1,057,458 0 9,815,592 0

D e p o s its ................................... 22,927,102 206,610 1,405,680 4,199,067 4,083,692 3,337,478 2,355,448 758,747 0 6,580,380 0

Mississippi

Banks ........................................ 183 4 18 67 49 29 9 5 0 2 0

A s s e ts ........................................ 10,584,792 14,272 137,577 1,113,588 1,674,962 1,932,694 1,260,790 1,753,078 0 2,697,831 0

D e p o s its ................................... 9,197,783 8,402 122,022 1,005,541 1,509,953 1,727,187 1,131,558 1,552,442 0 2,140,678 0

Missouri

Banks ........................................ 727 72 137 244 160 77 30 1 1 5 0

A s s e ts ........................................ 32,485,563 244,756 1,035,885 4,063,342 5,629,838 5,289,024 5,172,988 423,297 980,676 9,645,757 0

D e p o s its ................................... 25,841,752 212,036 925,428 3,643,083 5,016,137 4,635,646 4,210,310 371,512 678,227 6,149,373 0

Montana

Banks ........................................ 165 9 26 75 35 12 8 0 0 0 0

A s s e ts ........................................ 4,891,111 24,556 193,907 1,184,452 1,246,150 950,578 1,291,468 0 0 0 0

D e p o s its ................................... 4,321,141 20,017 172,970 1,066,796 1,123,078 831,794 1,106,486 0 0 0 0

Nebraska

25 0 Banks ........................................ 461 101 123 150 53 4 3 2 0

Assets ..................................... 10,502,865 325,136 916,242 2,480,264 1,755,016 1,726,328 497,319 1,325,717 1,476,843 0 0

D e p o s its ................................... 8,961,558 286,437 823,318 2,211,244 1,542,529 1,518,454 436,676 1,066,749 1,076,151 0 0

Nevada

Banks ........................................ 9 2 0 1 0 0 2 0 2 1 1

A s s e ts ........................................ 3,631,507 6,061 0 16,919 0 0 264,587 799,978 780,622 1,763,340 0

D e p o s its ................................... 3,126,858 3,525 0 13,521 0 0 236,024 678,292 663,540 1,531,956 0

New Hampshire

Banks ........................................ 79 4 10 25 23 11 6 0 0 0 0

A s s e ts ....................................... 3,023,158 12,203 75,550 452,818 789,767 701,514 991,306 0 0 0 0

D e p o s its ................................... 2,644,843 10,466 67,042 401,413 694,190 609,527 862,205 0 0 0 0

New Jersey

Banks ........................................ 176 1 0 23 49 33 38 9 17 6 0

A s s e ts ....................................... 34,307,341 1,761 0 408,699 1,788,943 2,184,574 5,934,450 3,644,741 11,719,747 8,624,426 0

D e p o s its ................................... 28,968,868 1,170 0 358,300 1,579,380 1,956,026 5,202,449 3,177,982 9,966,509 6,727,052 0

New Mexico

16 0 0 Banks ....................................... 87 2 5 23 33 6 2 0

A s s e ts ....................................... 5,422,714 4,380 39,802 417,726 1,262,604 1,313,027 994,992 0 1,390,183 0 0

D e p o s its ................................... 4,726,819 3,645 34,485 369,357 1,140,115 1,173,633 872,790 0 1,132,794 0 0

New York

Banks ....................................... 302 57 9 50 44 35 46 12 19 21 9

Assets ................................. 435,275,761 37,110 66,228 871,573 1,608,731 2,548,178 7,550,695 4,727,992 13,580,653 48,185,728 356,098,873

D e p o s its ................................... 326,574,231 31,298 56,453 744,040 1,360,856 2,126,924 5,668,666 3,401,800 9,127,977 33,373,494 270,682,723

1 56 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
North Carolina

Banks ........................................ 83 4 6 20 21

A s s e ts ....................................... 23,525,684 12,975 45,640 328,341 773,114

D e p o s its ................................... 18,864,629 10,542 37,939 287,283 675,640

North Dakota

Banks ........................................ 175 10 34 87 26

A s s e ts ....................................... 4,870,638 29,730 258,029 1,418,546 930,888

D e p o s its ................................... 4,156,568 23,623 232,515 1,272,023 816,026

Ohio

Banks ....................................... 408 5 44 117 98

A s s e ts ....................................... 52,901,858 17,703 324,393 1,983,141 3,311,634

D e p o s its ................................... 41,733,118 15,790 284,603 1,769,934 2,935,843

Oklahoma

Banks ....................................... 496 48 114 148 108

A s s e ts ........................................ 19,718,871 152,078 858,010 2,387,649 3,702,313

D e p o s its ................................... 16,841,473 128,586 760,738 2,149,565 3,318,452

Oregon

Banks ........................................ 80 14 15 21 14

A s s e ts ........................................ 12,613,598 34,026 120,682 329,323 497,319

D e p o s its ................................... 10,349,108 22,182 98,363 292,526 444,083

Pennsylvania

Banks ....................................... 378 6 25 94 85

A s s e ts ........................................ 85,002,238 6,301 190,559 1,634,427 3,130,725

D e p o s its ................................... 67,366,673 676 161,051 1,446,088 2,796,253

Rhode Island

Banks ........................................ 17 3 0 5 2

A s s e ts ........................................ 6,378,046 1,492 0 76,561 63,648

D e p o s its ................................... 5,037,058 1,157 0 65,076 55,091

South Carolina

Banks ........................................ 85 8 9 35 15

A s s e ts ........................................ 6,965,302 33,454 65,719 578,440 534,557

D e p o s its ................................... 5,810,143 27,922 57,207 505,638 463,416

South Dakota

Banks ........................................ 155 21 39 59 17

A s s e ts ........................................ 4,675,392 85,640 303,598 885,273 550,425

D e p o s its ................................... 4,183,820 74,966 273,612 799,464 493,354

Tennessee

Banks ........................................ 352 15 45 117 92

A s s e ts ........................................ 22,056,575 48,968 347,387 1,953,761 3,188,200

D e p o s its ................................... 18,644,763 43,249 310,115 1,766,364 2,854,944

Texas

Banks ....................................... 1,427 86 203 440 375

A s s e ts ....................................... 102,839,924 292,960 1,577,345 7,418,671 13,255,753

D e p o s its ................................... 85,270,211 248,461 1,398,045 6,647,666 11,915,341

Utah

Banks ........................................ 76 15 17 24 9

A s s e ts ........................................ 6,333,578 36,192 121,259 387,580 330,464

D e p o s its ................................... 5,413,485 26,611 104,180 344,613 297,470

Vermont

Banks ....................................... 30 2 3 4 12

A s s e ts ........................................ 2,212,585 3,363 20,036 79,457 404,320

D e p o s its ................................... 1,988,728 2,830 17,725 70,783 367,148

14 5 5 3 3 2

1,014,418 1,022,845 1,786,086 1,639,105 5,969,400 10,933,760

879,660 889,651 1,548,494 1,431,527 4,781,907 8,321,986

10 7 0 1 0 0

712,980 881,294 0 639,171 0 0

629,873 774,763 0 407,745 0 0

63 55 7 8 11 0

4,237,103 8,514,517 2,735,727 5,403,302 26,374,338 0

3,685,398 7,251,894 2,258,223 4,392,043 19,139,390 0

53 19 1 1 4 0

3,529,137 2,854,720 359,151 571,764 5,304,049 0

3,119,842 2,480,285 310,810 453,389 4,119,806 0

6 5 2 1 2 0

423,597 779,965 780,673 715,162 8,932,851 0

376,474 693,690 692,657 607,489 7,121,644 0

78 52 13 11 10 4

5,386,560 8,586,792 5,207,295 7,055,358 21,164,883 32,639,338

4,809,760 7,638,174 4,458,650 6,084,630 16,877,185 23,094,206

1 3 0 0 3 0

56,390 486,552 0 0 5,693,403 0

50,374 410,368 0 0 4,454,992 0

10 3 1 3 1 0

729,451 562,634 411,009 2,603,353 1,446,685 0

634,648 503,193 367,885 2,112,664 1,137,570 0

12 5 1 1 0 0

835,530 1,018,304 446,558 550,064 0 0

752,657 897,848 396,294 495,625 0 0

52 21 2 3 5 0

3,637,745 3,114,180 912,030 1,944,667 6,909,637 0

3,243,474 2,732,498 734,202 1,579,583 5,380,334 0

193 90 19 10 7 4

13,550,526 14,342,424 7,284,414 6,718,734 10,781,271 27,617,826

12,180,078 12,633,115 6,080,362 5,349,718 7,959,868 20,857,557

3 3 2 1 2 0

214,001 611,146 812,787 747,878 3,072,271 0

190,390 516,989 706,085 651,761 2,575,386 0

2 5 2 0 0 0

126,789 896,933 681,687 0 0 0

114,271 805,565 610,406 0 0 0

NUMBER OF BANKS AND BRANCHES 1 57

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Federal Reserve Bank of St. Louis
Table 105. NUMBER, ASSETS, AND DEPOSITS OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1979-CONTINUED 

BANKS GROUPED BY ASSET SIZE AND STATE 

(Amounts in thousands of dollars)

Banks with assets of—

State

All

banks

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or

more

Virainia

Banks ..................................... 234 13 22 78 63 33 15 2 3 5 0

A sse ts..................................... 22,360,616 51,445 168,316 1,249,576 2,232,348 2,137,678 2,702,872 820,028 2,117,520 10,880,833 0

D ep o sits................................. 18,887,613 38,417 146,762 1,114,111 2,004,245 1,910,090 2,344,586 688,938 1,809,550 8,830,914 0

Washington

Banks ..................................... 110 13 16 36 21 10 6 1 2 4 1

A sse ts..................................... 22,146,002 26,063 115,584 598,528 801,477 721,704 1,287,771 318,345 1,223,228 8,689,069 8,364,233

D ep o sits................................. 17,639,863 17,765 91,802 529,795 715,327 572,482 758,415 272,158 1,057,248 6,984,995 6,639,876

West Virginia

Banks ..................................... 235 10 27 79 69 30 19 1 0 0 0

A sse ts..................................... 9,484,209 35,265 219,974 1,383,771 2,398,809 2,054,022 2,932,513 459,855 0 0 0

D ep o sits................................. 8,028,595 28,444 191,764 1,227,854 2,129,996 1,787,725 2,349,083 313,729 0 0 0

Wisconsin

63 29 0 Banks ..................................... 636 35 99 229 176 1 2 2

A sse ts..................................... 25,829,755 113,356 752,944 3,868,735 6,064,281 4,245,595 4,396,199 369,291 1,382,849 4,636,505 0

D ep osits................................. 21,318,977 95,380 678,287 3,485,969 5,364,355 3,686,069 3,658,241 288,983 1,018,871 3,042,822 0

Wyoming

B a n k s ..................................... 94 14 12 26 24 15 3 0 0 0 0

A sse ts..................................... 3,082,501 50,103 89,741 443,941 844,945 1,009,100 644,671 0 0 0 0

D ep osits................................. 2,734,732 40,257 79,483 398,164 758,176 895,378 563,274 0 0 0 0

Other areas

Guam

Banks ..................................... 3 1 0 1 0 1 0 0 0 0 0

A sse ts..................................... 74,500 1,503 0 10,508 0 62,489 0 0 0 0 0

D ep osits................................. 59,954 190 0 6,974 0 52,790 0 0 0 0 0

Puerto Rico

Banks ..................................... 20 5 0 5 0 0 3 4 0 3 0

A sse ts..................................... 7,215,219 0 0 97,270 0 0 584,734 1,791,636 0 4,741,579 0

Deposits ............................... 5,027,647 0 0 79,053 0 0 489,909 1,560,583 0 2,898,102 0

Virgin Islands

Banks ..................................... 6 5 0 0 0 0 1

209,482

0 0 0 0

A sse ts..................................... 209,482 0 0 0 0 0 0 0 0 0

D ep osits................................. 204,760 0 0 0 0 0 204,760 0 0 0 0

1 Includes 91 nondeposit trust companies: 5 in Arizona, 2 in Arkansas, 15 in California, 2 in Delaware, 7 in Florida 3 in Hawaii, 6 in 

Illinois 1 in Indiana, 1 in Iowa, 1 in Massachusetts, 2 in Minnesota, 1 in Mississippi, 6 in Missouri, 3 in Montana, 7 in Nebraska 1 in 

New Hampshire, 1 in New Mexico, 6 in New York, 2 in North Dakota, 2 in Oklahoma, 1 in Oregon, 2 in Pennsylvania, 1 in Rhode 

Island, 1 in South Dakota, 1 in Tennessee, 2 in Utah, 1 in Vermont, 1 in Virginia, 1 in Washington, 5 in Wisconsin and 1 in Puerto

2 Excludes data for branches in U.S. territories of banks headquartered in the United States, and excludes data for 19 insured branches 

in New York of 3 insured nonmember banks in Puerto Rico and 1 insured branch in California of an insured nonmember bank in

3Data are from fully consolidated Reports of Condition including domestic and foreign offices.

1 58 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
ASSETS AND LIABILITIES OF BANKS

Table 1 06. Assets and liabilities of all commercial banks in the United States (States and other areas),

June 30, 1 979 Banks grouped by insurance status and class of bank

Table 1 07. Assets andjiabilities of all commercial banks in the United States (States and other areas),

December 31, 1 979 Banks grouped by insurance status and class of bank

Table 108. Assets and liabilities of all mutual savings banks in the United States (States and other areas),

June 30, 1 979, and December 31,1 979 Banks grouped by insurance status

Table 109. Assets and liabilities of insured commercial banks in the United States (States and other

areas), December call dates, 1 974— 1 979

Table 1 10. Assets and liabilities of insured commercial banks (domestic and foreign offices), United

States and other areas, 1 973— 1 977

Table 1 1 0A. Assets and liabilities of insured commercial banks (domestic and foreign offices), United

States and other areas, December 31, 1978

Table 110B. Assets and liabilities of insured commercial banks (domestic and foreign offices), United

States and other areas, December 31,1 979

Table 111. Assets and liabilities of insured mutual savings banks in the United States (States and other

areas), December call dates, 1 974— 1 979

Table 1 1 2. Percentages of assets, liabilities, and equity capital of insured commercial banks operating

throughout 1979 in the United States (States and other areas), December 31, 1979 Banks grouped by amount of assets

Table 113. Percentages of assets and liabilities of insured mutual savings banks operating throughout

1979 in the United States (States and other areas), December 31, 1979 Banks grouped by amount of assets

Table 1 14. Distribution of insured commercial banks in the United States (States and other areas),

December 31,1 979

Banks grouped according to amount of assets and by ratios of selected items to assets or deposits

Com m ercial banks

Insured banks having total resources of $25 million or more are required 

to report on the basis of accrual accounting. Where the results would not be 

significantly different, at the option of the bank, trust department accounts 

and certain other accounts may be reported on a cash basis. All banks, 

regardless of size or accounting system, are required to report unearned 

income on loans in the Report of Condition, Schedule A (loans). All banks, 

regardless of size or accounting system, are required to report income taxes 

on a current basis. The income taxes must be computed on the amount of 

income and expense included in the Report of Income.

Each insured bank having foreign offices is required to submit a 

consolidated report including these offices; however, except for table 110 

tables on pages 161 -185 contain only the domestic assets and liabilities of

banks. Beginning in 1 969, all majority-owned bank premises subsidiaries 

are fully consolidated; other majority-owned domestic subsidiaries (but not 

commercial bank subsidiaries) are consolidated if they meet any of the 

following criteria: (a) any subsidiary in which the parent bank's investment 

represents 5 percent or more of its equity capital accounts, (b) any subsidiary 

whose gross operating revenues amount to 5 percent of the parent bank's 

gross operating revenues, or (c) (beginning in December 1972) any 

subsidiary whose "Income (loss) before income taxes and securities gains or 

losses'' amounts to 5 percent or more of the "income (loss) before income 

taxes and securities gains or losses” of the parent bank. Beginning in 1 972, 

investments in subsidiaries not consolidated in which the bank directly or 

indirectly exercises effective control are reported on an equity (rather than 

cost) basis with the investment and undivided profits adjusted to include the

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Federal Reserve Bank of St. Louis
parent's share of the subsidiaries' net worth.

In the case of insured banks with branches outside the 50 States and D.C., 

net amounts due from such branches are included in "Other assets” and net 

amounts due to such branches are included in "Other liabilities.” Branches 

of insured banks outside the 50 States and D. C. 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.

From 1 969 through 1 975, all reserves on loans and securities, including 

the reserves for bad debts set up pursuant to Internal Revenue Service 

rulings, were included in "Reserves on loans and securities" on the liability 

side of the balance sheet. Beginning in 1 976, the IRS reserve is divided as 

follows: (a) the "valuation" portion of the reserve (plus any other loan loss 

reserve) is shown on the asset side of the face of the report as an offset to 

total loans; (b) the "deferred income tax" portion is included in "other 

liabilities"; and (c) the "contingency" portion is included in "undivided 

profits,” or "reserves for contingencies and other capital reserves" (preferably the former). The valuation reserve on securities, formerly shown on the 

liabilities side, is included in "reserve for contingencies and other capital 

reserves” beginning in 1 976.

"Unearned income on loans," previously reported in "other liabilities,” is 

reported separately as an exclusion from gross loans and total assets beginning March 31,1 976.

Beginning March 31, 1979, "deposits accumulated for the payment of 

personal loans" was eliminated from deposits. Such "deposits" are required 

to be deducted from the appropriate loan category before completion of 

Report of Condition Schedule A (loans).

The category "Trading account securities" was added to the condition 

report of commercial banks in 1 969 to obtain this segregation for banks that 

regularly deal in securities w ith other banks or with the public. Banks 

occasionally holding securities purchased for possible resale report these 

under "Investment securities."

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.

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.)

In 1976, the caption "Capital notes and debentures” was changed to 

"subordinated notes and debentures," to be shown in the liabilities section 

of the Report of Condition. Accordingly, "capital accounts" became the 

"equity capital" section.

In 1 978 an abbreviated Report of Condition was instituted for banks with 

less than $100 million in total consolidated assets. Beginning with 

December 1978, other liabilities for borrowed money include interestbearing demand notes issued to the U.S. Treasury.

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.

Additional data on assets and liabilities of all banks as of December 31, 

1977, and June 30, 1978, are shown in the Corporation's semiannual 

publication Assets and Liabilities—Commercial and M utual Savings Banks.

Mutual savings banks

The Reports of Income and Condition were significantly revised in 1 979. 

The intent of the revisions was to provide more meaningful information 

concerning the operations and condition of the mutual institutions as well as 

to bring reporting by such institutions into closer conformance to accounting 

principles.

Report of Income

In addition to obtaining more detail concerning operating income and 

expenses, the reporting format and instructions were changed to reflect 

interest and dividends paid or accrued as an operating expense. Gains and 

losses on mortgage loans, real estate and other transactions are included in 

other operating income or other operating expenses rather than being 

separately stated. Income taxes are reflected separately on operating 

income, securities transactions and extraordinary items. The reporting of the 

provision for possible loan losses requires an expense based on management discretion rather than an expense reflecting net loan losses.

Report of Condition

Significant changes to this form include the separate reporting and deduction of a valuation reserve against real estate loans and other loans. Deposit 

categories were changed to reflect industry practice. A Memoranda schedule and a Supplemental Schedule H were added to provide information 

concerning the market value of bond and equity investments, selected asset 

and liability average figures, and past due and non-accrual real estate loans. 

M aturity distributions of security investments, time deposits and borrowed 

funds were incorporated into the report.

Foreign assets of banks

Since June 30, 1 974, a consolidated statement of domestic and foreign 

assets and liabilities of U.S. banks has been published semiannually by the 

Corporation in Assets and Liabilities—Commercial and M utual Savings Banks. (Beginning with June 30, 1 977, foreign office assets and liabilities 

itemized by State are published in Assets and Liabilities—Commercial and M utual Savings Banks.) In December 1978, a revised fully consolidated 

domestic and foreign Report of Condition was instituted.

Sources of data

Insured banks: seep, 187; noninsured banks: State banking authorities and 

and reports from individual banks.

NOTE: Tables with Report of Condition financial data may not balance as 

a result of certain noninsured banks submitting balance sheet 

data but not submitting supporting detail in some of the schedules. 

Some noninsured banks that did not submit financial data are 

included in the counts of banks.

1 60 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 106. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE 30, 1979 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK 

(Amounts in thousands of dollars)

Asset, liability or expense item Total

Insured banks Noninsured banks

Total

Members of 

Federal Reserve System

Not 

members 

of F.R. 

System

Total

Banks

of

deposit

Nondeposit

trust

Total National State companies

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

Cash and due from depository institutions— to ta l......................................

Cash items in process of collection ...........................................................

Demand balances with commercial banks in the United States ................

All other balances with depository institutions in the U.S. and with

banks in foreign countries .....................................................................

Balances with Federal Reserve Banks.........................................................

Currency and coin ......................................................................................

Securities— to ta l............................................................................................

U.S. Treasury securities ...........................................................................

Obligations of other U.S. Government agencies and corporations ..........

Obligations of States and political subdivisions in the U.S........................

All other securities .....................................................................................

Federal funds sold and securities purchased under agreements

to resell ......................................................................................................

Loans, net ......................................................................................................

Plus: Allowances for possible loan losses ................................................

Loans, total ....................................................................................................

Plus: Unearned income on loans ...............................................................

Loans, gross ..................................................................................................

Real estate loans— to ta l............................................................................. Construction and land development....................................................... Secured by farmland ............................................................................. Secured by 1-4 family residential properties ........................................ Secured by multi family (5 or more) residential properties.................... Secured by nonfarm nonresidential properties......................................

Loans to financial institutions.................................................................

Loans for purchasing or carrying securities..........................................

Loans to finance agricultural production and other loans to farm ers... 

Commercial and industrial loans ...........................................................

Loans to individuals— to tal......................................................................... To purchase private passenger automobiles on installment basis Credit cards and related plans ............................................................... To purchase mobile homes (excluding travel trailers) .......................... All other instalment loans for household, family and other personal expenditures ....................................................................... Single payment loans for household, family and other personal expenditures .......................................................................

All other loans ....................................................................................................

Total loans and securites .....................................................................

1,354,574,564 1,317,902,585 990,213,226 749,419,372 240,793,854 327,689,359 36,671,979 36,259,656 412,323

183,322,714

78,167,214

47,938,062

11,376,502

32,458,272

13,335,390

178,342,062

78,033,191

45,717,049

8,807,224

32,457,945

13,326,653

150,918,291

74,931,193

29,013,164

4,759,170

32,457,260

9,757,504

98,524,153

46,646,889

15,657,695

3,369,486

25,231,747

7,618,336

52,394,138

28,284,304

13,355,469

1,389,684

7,225,513

2,139,168

27,423,771

3,101,998

16,703,885

4,048,054

685

3,569,149

4,980,652

134,023

2,221,013

2,569,278

327

8,737

4,930,171

133,985

2,201,935

2,552,843

38

8,651

50,481

38

19,078

16,435

289

86

276,228,754

87,108,936

44,730,102

127,032,567

17,357,099

274,263,581

86,604,814

44,567,851

126,365,347

16,725,569

187,544,167

57,245,202

27,934,734

88,089,857

14,274,374

145,066,636

43,268,493

22,789,840

68,642,733

10,365,570

42,477,531

13,976,709

5,144,894

19,447,124

3,908,804

86,719,414

29,359,612

16,633,117

38,275,490

2,451,195

1,965,173

504,172

162,251

667,220

631,530

1,872,576

463,485

154,265

643,217

611,609

92,597

40,687

7,986

24,003

19,921

54,969,826 52,416,544 40,368,859 33,513,336 6,855,523 12,047,685 2,553,282 2,436,839 116,443

742,809,909

8,567,003

751,376,912

19,470,307

720,884,326

8,447,992

729,332,318

19,430,281

532,571,034

6,647,838

539,218,872

12,933,611

414,361,997

4,996,242

419,358,239

10,708,031

118,209,037

1,651,596

119,860,633

2,225,580

188,313,292

1,800,154

190,113,446

6,496,670

21,925,583

119,011

22,044,594

40,026

21,896,884

118,533

22,015,417

39,706

28,699

478

29,177

320

770,734,252

228,813,552 29,568,294 8,669,974

127,477,999 6,086,500 57,010,785

48.169.705 

14,728,202 

29,839,361

249,797,543

178,814,820 66.058.706 25,970,872 10,384,697

44,806,263

31,594,282

20,231,497

748,762,601

228,401,583 29,496,093 8,648,228 127,278,238 6,076,386 56,902,638

38,695,569

14,574,731

29,786,725

240,944,514

178,613,864 66,008,730 25,955,620 10,383,864

44,743,760

31,521,890

17,745,615

552,152,485

155,772,197 21,965,719 3,719,907 88,038,168 4,421,681 37,626,722

36,549,021

13,507,367

16,067,473

193,437,260

121,967,238 42,116,339 22,903,023

7,153,129

28,840,555

20,954,192

14,851,929

430,066,272

126,814,505 17,351,695 3,10.0,617 72,778,217 3,335,351 30,248,625

24,503,901

8,264,468

13,987,683

145,770,553

99,653,461 34,890,193 18,703,553

6,384,489

23,097,616

16,577,610

11,071,701

122,086,213

28,957,692 4,614,024 619,290 15,259,951 1,086,330 7,378,097

12,045,120

5,242,899

2,079,790

47,666,707

22,313,777 7,226,146 4,199,470

768,640

5,742,939

4,376,582

3,780,228

196,610,116

72,629,386 7,530,374 4,928,321 39,240,070 1,654,705 19,275,916

2,146,548

1,067,364

13,719,252

47,507,254

56,646,626 23,892,391 3,052,597 3,230,735

15,903,205

10,567,698

2,893,686

21,971,651

411,969 72,201 21,746 199,761 10,114 108,147

9,474,136

153,471

52,636

8,853,029

200,956 49,976 15,252 833

62,503

72,392

2,485,882

21,942,394

407,012 71,648 21,555 196,810 9,781 107,218

9.469,945

153,471

52,636

8,850,239

199,673 49,336 15,250 833

61,862

72,392

2,478,477

29,257

4,957 553 191 2,951 333 929

4,191

0

0

2,790

1,283 6402

0

641

0

7,405

1,074,008,489 1,047,564,451 760,484,060 592,941,969 167,542,091 287,080,391 26,444,038 26,206,299 237,739

ASSETS AND LIABILITIES OF BANKS

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 106. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE 30, 1979— CONTINUED 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK 

(Amounts in thousands of dollars)

Insured banks Noninsured banks

Total

Total

Members of 

Federal Reserve System

Not 

members 

of F.R. 

System

Total

Banks

of

deposit

Nondeposit

trust

Total National State companies

8,597,143 8,596,893 7,858,602 6,040,889 1,817,713 738,291 250 250 0

21,455,282

2,306,837

64,670,952

21,393,919

2,283,382

59,721,878

15,280,543

1,799,273

53,872,457

12,414,219

1,391,823

38,106,319

2,866,324

407,450

15,766,138

6,113,376

484,109

5,849,421

61,363

23,455

4,949,074

47,545

23,223

4,839,021

13,818

232

110,053

1,354,574,564 1,317,902,585 990,213,226 749,419,372 240,793,854 327,689,359 36,671,979 36,259,656 412,323

869,626,087

295,322,501 216,311,370 205,860,310

10,451,060

339,916,329

857,946,222

294,311,005 215,798,870 205,360,187

10,438,683

331,860,353

604,566,654

214,228,239 145,905,613 138,940,203

6,965,410

232,173,972

475,436,709

165,228,089 116,908,123 111,430,237

5,477,886

186,238,039

129,129,945

49,000,150 28,997,490 27,509,966

1,487,524

45,935,933

253,379,568

80,082,766 69,893,257 66,419,984

3,473,273

99,686,381

11,679,865

1,011,496 512,500

500,123

12,377 

8,055,976

11,618,385

961,731 511,398 499,740

11,658

8,048,315

61,480

49,765 1,102 383

719

7,661

18,075,887 15,975,994 12,258,830 7,062,458 5,196,372 3,717,164 2,099,893 2,096,941 2,952

86,427,793

2,076,359

85,602

901,259

18,013,990

4,196,071

61,154,512

85,998,126

2,074,141

85,602

900,822

17,920,963

4,188,894

60,827,704

56,123,768

1,361,429

63,585

658,101

11,741,020

2,594,850

39,704,783

45,911,016

1,122,269

61,394

453,195

9,560,549

1,878,157

32,835,452

10,212,752

239,160

2,191

204,906

2,180,471

716,693

6,869,331

29,874,358

712,712

22,017

242,721

6,179,943

1,594,044

21,122,921

429,667

2,218

0

437

93,027

7,177

326,808

429,340

2,213

0

437

93,027

7,177

326,486

327

5

0

0

0

0

322

71,056,398

55,386,353

57,343

15,612,702

67,581,501

54,022,237

57,343

13,501,921

64,499,643

52,377,060

39,377

12,083,206

32,566,726

24,428,442

26,007

8,112,277

31,932,917

27,948,618

13,370

3,970,929

3,081,858

1,645,177

17,966

1,418,715

3,474,897

1,364,116

0

2,110,781

3,472,393

1,361,612

0

2,110,781

2.504

2.504 

0 

0

1,027,393,382 388,840,087

220,689,426 417,828,454

1,011,525,849 384,304,340 220,130,709 407,090,800

725,190,065 291,966,578 148,603,425 284,620,062

553,914,451 207,401,807

118,873,681 227,638,963

171,275,614 84,564,771 29,729,744

56,981,099

286,335,784 92,337,762 71,527,284

122,470,738

15,867,533 4,535,747 558,717 10,737,654

15,790,774 4,505,303

557,615 10,717,223

76,759 30,444 1,102 20,431

228,055,173 207,964,097 192,972,142 140,426,429 52,545,713 14,991,955 20,091,076 19,842,345 248,731

115,213,261 112,706,308 105,061,803 79,501,616 25,560,187 7,644,505 2,506,953 2,500,495 6,458

35,426,244

2,071,948

75,343,720

30,836,161

2,065,635

62,355,993

28,558,992

1,644,597

57,706,750

18,879,837

1,261,356

40,783,620

9,679,155

383,241

16,923,130

2,277,169

421,038

4,649,243

4,590,083

6,313

12,987,727

4,586,630

618

12,754,602

3,453

5,695

233,125

Asset, liability or expense item

Lease financing receivables ................................................................

Bank premises, furniture and fixtures, and other assets representing

bank premises ................................................................................

Real estate owned other than bank prem ises.....................................

All other assets....................................................................................

Total liabilities and equity capital ........................................................

Business and personal deposits— total ...........................................

Individuals, partnerships and corporations— dem and.................. Individuals, partnerships, and corporations-savings.................. Individuals and nonprofit organizations-savings .........................

Corporations and other profit organizations— savings ..................

Individuals, partnerships, and corporations— tim e .......................

Certified and officers’ checks, travelers’ checks, letters of 

credit— demand ..........................................................................

Government deposits— to ta l..............................................................

United States Government— dem and.............................................

United States Government— savings .............................................

United States Government— tim e ...................................................

States and political subdivisions— dem and...................................

States and political subdivisions— savings ...................................

States and political subdivisions— tim e .........................................

All other deposits— to ta l....................................................................

Demand ..........................................................................................

Savings............................................................................................

T im e ................................................................................................

Total deposits .................................................................................... Demand .......................................................................................... Savings............................................................................................ Tim e..................................................................................................

Miscellaneous liabilities— to ta l........................................................

Federal funds purchased and securities sold under agreements

to purchase ..................................................................................

Interest bearing demand notes issued to the U.S. Treasury and

other liabilities for borrowed m oney...........................................

Mortgage indebtedness and liability for capitalized leases ............

All otner liabilities............................................................................

1 62 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Total liabilities (excluding subordinated notes and debentures) ___

Subordinated notes and debentures.............................................................

Equity capital— total ......................................................................................

1,255,661,701 1,219,489,945 918,162,206 694,340,879 223,821,327 301,327,739 36,171,756 35,846,266 325,490

5,946,552

93,013,501

147,721

5,793

19,896,197

2,298,870

34,321,867

38,654,870

5,931,552

92,524,926

136,463

5,793

19,725,881

2,295,891

34,143,792

38,518,790

4,430,987

67,663,870

33,305

1,175

14,196,396

1,332,806

23,761,150

29,673,019

3,205,706

51,872,786

29,761

693

11,148,729

1,087,567

17,407,311

23,286,985

1,225,281

15,791,084

3,544

482

3,047,667

245,239

6,353,839

6,386,034

1,500,565

24,861,056

103,158

4,618

5,529,485

963,085

10,382,642

8,845,771

15,000

488,575

11,258

0

170,316

2,979

178,075

136,080

13,736

403,006

11,258

0

142,865

1,648

147,987

108,050

1,264

85,569

0

0

27,451

1,331

30,088

28,030

Preferred stock— par value.........................................................................

Preferred stock— shares outstainding (in thousands) ..............................

Common stock— par value.........................................................................

Common stock— shares outstanding (in thousands)................................

S urp lus........................................................................................................

Undivided profits and reserve for contingencies and other 

capital reserves.......................................................................................

PERCENTAGES

Of total assets:

Cash and due from depository institutions.....................................................

U.S. Treasury securities and obligations of other U.S. Government

agencies and corporations.........................................................................

All other securities ..........................................................................................

Loans (including federal funds sold and securities purchased

under agreements to resell) .......................................................................

All other assets..........................................................................

Total equity capital3 ........................................................................

13.53

9.73

10.66

59.53 

6.55 

6.87

8.58"

23,562,757

174,664,718

28,477,769

13.53

9.95

10.86

59.32

6.34

7.02

8.79

22,408,468

168,584,502

26,826,517

15.24

8.60

10.34

58.53

7.29

6.83

8.65

21,037,509

129,851,854

22,950,981

13.15

8.81

10.54

60.43

7.07

6.92

8.54

14,584,616

99,971,735

18,940,367

21.76

7.94

9.70

52.62

7.98

6.56

9.05

6,452,893

29,880,119

4,010,614

8.37

14.04

12.43

61.69

3.47

7.59

9.18

1,370,959

38,732,648

3,875,536

13.58

1.82

3.54

67.08

13.98

1.33

1.51

1,154,289

6,080,216

1,651,242

13.60

1.70

3.46

67.44

13.80

1.11

1.314

1,154,289

6,080,216

1,651,242

12.24

11.80

10.65

35.32

29.98

20.75

26.64

0

0

0

Of total assets other than cash and U.S. Treasury securities:

Total equity capital3 .........................................................................

MEMORANDA

Standby letters of credit— total .........................................................................

Time certificates of deposits in denominations of $100,000 or m o re ..............

Other time deposits in amounts of $100,000 or m ore ......................................

Number of banks at end of period ..................................................................... 14,730 14,367 5,481 4,493 988 8,886 363 275 88

Includes asset and liability domestic figures for branches of foreign banks (tabulated as banks) licensed to do a deposit business. Capital 

2is not allocated to these branches by the parent banks.

Amounts shown as deposits are special accounts and univested trust funds, with the latter classified as demand deposits of individuals 

3partnerships, and corporations.

Only asset and liability data are included for branches located in “ other areas” of banks headquartered in one of the 50 States; because 

no capital is allocated to these branches, they are excluded from the computation of ratios of equity capital to assets.

Data for domestic branches of foreign banks referred to in footnote 1 have been excluded in computing this ratio for noninsured banks of 

deposit.

Note: Further information on the reports of assets and liabilities of banks may be found on pp. 159-160.

ASSETS AND LIABILITIES OF BANKS 1 63

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 107. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1979 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK 

(Amounts in thousands of dollars)

Asset, liability or expense item Total

Insured banks Noninsured banks

Total

Members of 

Federal Reserve System

Not 

members 

of F.R. 

System

Total

Banks

of

deposit

Nondeposit

trust

Total National State companies

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

Cash and due from depository institutions— total

Cash items in process of collection .........................................................

Demand balances with commercial banks in the

United States .......................................................................................

All other balances with depository institutions

in the U.S. and with banks in foreign countries...................................

Balances with federal reserve banks.........................................................

Currency and coin ...................................................................................

Securities— to ta l.........................................................................................

U.S. treasury securities ...........................................................................

Obligations of other U.S. government

agencies and corporations...................................................................

Obligations of states and political subdivisions in the U.S........................

All other securites.....................................................................................

1,437,748,680

198,925,337

82,248,567

49,282,631

16,397,916

32,240,516

18,613,289

287,830,798

88,771,955

49,536,126

133,344,421

16,178,296

1,405,665,994

192,420,607

81,933,644

47,940,502

11,703,690

32,240,418

18,602,353

285,484,061

88,221,453

49,313,676

132,568,154

15,380,778

1,053,279,038

159,689,869

78,554,350

29,218,273

5,917,033

32,233,868

13,766,345

194,039,972

58,062,224

31,048,036

91,987,835

12,941,877

796,797,598

107,149,430

50,604,262

17,209,571

4,523,658

24,076,174

10,735,765

149,344,375

44,125,843

24,702,117

71,030,870

9,485,545

256,481,440

52,540,439

27,950,088

12,008,702

1,393,375

8,157,694

3,030,580

44,695,597

13,936,381

6,345,919

20,956,965

3,456,332

352,386,956

32,730,738

3,379,294

18.722.229

5,786,657

6,550

4,836,008

91,444,089

30.159.229

18,265,640

40,580,319

2,438,901

32,082,686

6,504,730

314,923

1,342,129

4,694,226

98

10,936

2,346,737

550,502

222,450

776,267

797,518

30,821,378

6,355,182

314,921

1,320,376

4,681,826

0

10,889

2,067,152

500,528

217,035

634,692

714,897

1,261,308

149,548

2

21,753

12,400

98

47

279,585

49,974

5,415

141,575

82,621

Federal funds sold and securities purchased under

agreements to resell............................................................................... 63,528,912 61,065,864 45,304,643 36,263,627 9,041,016 15,761,221 2,463,048 2,258,550 204,498

Loans, net ......................................................................................................

Plus: Allowances for possible loan losses ...............................................

Loans, total ....................................................................................................

Plus: unearned income on loans .............................................................

784,577,966

9,058,528

793,636,494

20,564,660

766,830,747

8,958,983

775,789,730

20,532,380

568,711,373

7,033,207

575,744,580

13,727,366

440,644,422

5,295,670

445,940,092

11,320,141

128,066,951

1,737,537

129,804,488

2,407,225

198,119,374

1,925,776

200,045,150

6,805,014

17,747,219

99,545

17,846,764

32,280

17,708,262

99,473

17,807,735

32,280

38,957

72

39,029

0

Loans, gross ...................................................................................................

Real estate loans— to ta l........................................................................... Construction and land development..................................................... Secured by farmland ........................................................................... Secured by 1-4 family residential properties ....................................... Secured by multi family (5 or more) residential properties.................... Secured by nonfarm nonresidential properties.....................................

813,832,215

245,193,944 32,974,100 8,588,802 137,566,006 6,326,898 59,738,138

796,322,110

244,796,237 32,929,259 8,562,893 137,346,068 6,305,464 59,652,553

589,471,946

167,513,417 24,956,154 3,675,244 95,266,411 4,542,364 39,073,244

457,260,233

136,799,573 19,729,426 3,067,639 79,159,695 3,422,988 31,419,825

132,211,713

30,713,844 5,226,728 607,605 16,106,716 1,119,376 7,653,419

206,850,164

77,282,820 7,973,105 4,887,649 42,079,657 1,763,100 20,579,309

17,510,105

397,707 44,841 25,909 219,938 21,434 85,585

17,495,458

394,918 44,474 25,855 217,982 21,107 85,500

14,647

2,789 367

1956 32785

1 64 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Loans to financial institutions ......................

Loans for purchasing or carrying securities . 

Loans to finance agricultural production and

other loans to farmers ..........................

Commercial and industrial loans ..............

Loans to individuals— total ................................................................ To purchase private passenger automobiles on installment basis . Credit cards and related plans ..................................................... To purchase mobile homes (excluding travel trailers) ................. All other installment loans forhousehold, family and other personal expenditures ............................................. Single payment loans for household, family and other personal expenditures .............................................

All other loans ....................................................................................

Total loans and securities .

Lease financing receivables ...........................................

Bank premises, furniture and fixtures, and other assets

representing bank prem ises .......................................

Real estate owned otner than bank prem ises.................

All other assets...............................................................

Total liabilities and equity capital ...........................................

Business and personal deposits— to ta l................................

Individuals, partnerships and corporations— demand........

Individuals, partnerships, and corporations— savings ___ Individuals and nonprofit organizations-savings.............. Corporations and other profit organizations-savings........

Individual, partnerships, and corporations— tim e ..............

Certified and officers’ checks, travelers’ checks, letters of 

credit— dem and.............................................................

Government deposits— to ta l........................

United States government— dem and........

United States government— savings ........

United States government— tim e ..............

States and political subdivisions— demand 

States and political subdivisions— savings 

States and political subdivisions— time ...

All other deposits— to ta l..............................

Demand ...................................................

Savings.....................................................

T im e .........................................................

48,955,987

13,596,448

41,919,383

13,501,352

39,751,940

12,393,758

25,844,744

7,065,325

13,907,196

5,328,433

2,167,443

1,107,594

7,036,604

95,096

7,032,601

95,096

4,003

0

31,083,846

265,797,624

31,036,748

257,678,468

16,794,277

207,851,734

14,700,658

156,073,838

2,093,619

51,777,896

14,242,471

49,826,734

47,098

8,119,156

47,098

8,119,156

0

0

187,923,537 67,841,181 29,975,383 10,659,121

187,789,998 67,804,978 29,958,653 10,658,711

128,771,259 43,273,145 26,484,297 7,422,945105,132,243 35,634,268 21,552,565 6,651,668

23,639,016 7,638,877 4,931,732 771,277

59,018,739 24,531,833 3,474,356 3,235,766133,539 36,203 16,730 410

133,539 36,203 16,730 410

0

0

0

0

47,190,823 47,139,893 30,348,293 24,466,106 5,882,187 16,791,600 50,930 50,930 0

32,257,029 32,227,763 21,242,579 16,827,636 4,414,943 10,985,184 29,266 29,266 0

21,280,483 19,599,924 16,395,561 11,643,852 4,751,709 3,204,363 1,680,559 1,673,050 7,509

1,135,937,676 1,113,380,672 808,055,988 626,252,424 181,803,564 305,324,684 22,557,004 22,033,964 523,040

9,954,998 9,951,916 9,087,604 6,789,640 2,297,964 864,312 3,082 3,038 44

22,680,790

2,126,919

67,870,566

22,605,926

2,085,954

65,220,919

15,976,950

1,599,000

58,869,627

12,952,433

1,269,263

42,384,408

3,024,517

329,737

16,485,219

6,628,976

486,954

6,351,292

74,864

40,965

2,649,647

49,463

15,359

2,111,978

25,401

25,606

537,669

1,437,748,680 1,405,665,994 1,053,279,038 796,797,598 256,481,440 352,386,956 32,082,686 30,821,378 1,261,308

940,826,398

334,976,081

203,411,779 193,594,207 9,817,572

385,555,003

933,830,811

334,126,108

203,132,354 193,337,392 9,794,962

385,555,003

659,295,640

246,076,913

136,824,080 130,405,449 6,418,631

380,623,591

515,634,774

187,736,093

109,406,809 104,321,055 5,085,754

264,309,218

143,660,866

58,340,820

27,417,271 26,084,394 1,332,877

210,986,835

274,535,171

88,049,195

66,308,274 62,931,943 3,376,331

53,322,383

6,995,587

849,973

279,425 256,815 22,610

116,314,373

6,970,425

827,294

279,425 256,815 22,610

4,931,412

25,162

22,679

0

0

0

4,931,412

16,883,535 15,948,758 12,085,429 7,505,037 4,580,392 3,863,329 934,777 932,294 2,483

87,229,187

2,409,529 

72,882 

949,616 

19,047,809 

3,802,922 

; 60,946,429

86,768,339

2,406,844

72,882

949,192

18,932,709

3,794,443

60,612,269

55,967,139

1,659,485

54,338

724,523

12,440,121

2,250,283

38,838,389

45,668,860

1,354,497

49,631

501,176

10,092,060

1,727,263

31,944,233

10,298,279

304,988

4,707

223,347

2,348,061

523,020

6,894,156

30,801,200

747,359

18,544

224,669

6,492,588

1,544,160

21,773,880

460,848

2,685

0

424

115,100

8,479

334,160

460,845

2,682

0

424

115,100

8,479

334,160

3

3

0

0

0

0

0

80,369,388

61,671,568

51,439

18,646,381

74,006,025

60,138,935

50,347

13,816,743

70,574,513

58,202,713

38,122

12,333,678

37,556,742

28,965,545

25,231

8,565,966

33,017,771

29,237,168

12,891

3,767,712

3,431,512

1,936,222

12,225

1,483,065

6,363,363

1,532,633

1,092

4,829,638

6,360,957

1,530,227

1,092

4,829,638

2.406

2.406 

0 

0

ASSETS AND LIABILITIES OF BANKS 165

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 107. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

D E C E M B E R 31, 1 9 7 9 - C O N T I N U E D 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK 

(Amounts in thousands of dollars)

Asset, liability or expense item Total

Insured banks Noninsured banks

Total

Members of 

Federal Reserve System

Not 

members 

of F.R. 

System

Total

Banks

of

deposit

Nondeposit

trust

Total National State companies

Total deposits ......................................................................................... Demand ................................................................................................ Savings ................................................................................................ Tim e......................................................................................................

Miscellaneous liabilities— to ta l...............................................................

Federal funds purchased and securities sold under agreements

to repurchase ......................................................................................................

Interest bearing demand notes issued to the U.S. Treasury and other

liabilities for borrowed money .......................................................................

M ortgage indebtedness and liability fo r capitalized le a s e s ..........................

All other lia b ilitie s ...................................................................................................

Total liabilities (excluding subordinated 

notes and debentures)...................................................................

Subordinated notes and debentures.....................................................

Equity capital— total .............................................................................

Preferred stock— par v a lu e ..............................................................................

Preferred stock— shares outstanding (in tho u sa n d s)...............................

Common stock— par v a lu e ..............................................................................

Common stock— shares outstanding (in th o u s a n d s )...............................

S u rp lu s .................................................................................................................

Undivided profits and reserve fo r contingencies 

and other capital reserves .........................................................................

1,108,689,961 434,988,071 207,339,022 466,362,537

1,094,605,175 431,553,354 207,050,026 456,001,795

785,837,292 330,464,661 139,166,823 316,205,808

598,860,376 235,653,232 111,208,934 251,998,210

186,976,916 94,811,429 27,957,889 64,207,598

308,767,883 101,088,693 67,883,203 139,795,987

14,084,786 3,434,717 288,996 10,360,742

14,044,427 3,407,203 288,996 10,347,898

40,359 27,5140

12,844

225,005,467

114,868,745

33,221,162

2,160,935

74,754,625

1,333,947,822

207,863,851

112,149,032

27,875,285

2,106,731

65,732,803

1,302,469,026

192,201,521

104,531,369

25,715,892

1,637,416

60,316,844

978,038,813

140,606,762

79,152,078

17,148,196

1,234,597

43,071,891

739,467,138

51,594,759

25,379,291

8,567,696

402,819

17,244,953

238,571,675

15,662,330

7,617,663

2,159,393

469,315

5,415,959

324,430,213

17,141,616

2,719,713

5,345,877

54,204

9,021,822

31,478,796

16,173,557

2,699,713

5,219,525

47,709

8,206,610

30,470,378

968,059

20,000

126,352

6,495

815,212

1,008,418

5,957,206

97,843,654

129,019

5,961

20,452,309

2,895,930

35,489,821

41,761,105

5,955,812

97,241,158

125,890

5,961

20,273,743

2,892,982

35,328,623

41,512,902

4,417,980

70,822,249

34,208

912

14,517,699

1,424,594

24,301,059

31,969,283

3,034,067

54,296,395

30,631

428

11,402,799

1,177,606

17,846,174

25,016,791

1,383,913

16,525,854

3,577

484

3,114,900

246,988

6,454,885

6,952,492

1,537,832

26,418,909

91,682

5,049

5,756,044

1,468,388

11,027,564

9,543,619

1,394

602,496

3,129

0

178,566

2,948

161,198

248,203

385

350,615

3,105

0

140,348

1,282

119,135

76,627

1,009

251,881

24

0

38,218

1,666

42,063

171,576

1 66 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
PERCENTAGES

Of total assets:

Cash and due from depository institutions.............................................. 13.84 13.69 15.16 13.45 20.49 9.29 20.27 20.62 11.86

U.S. Treasury securities and obligations of other U.S. government 

agencies and corporations.................................................................. 9.62 9.78 8.46 8.64 7.91 13.74 2.41 2.33 4.39

All other securities .................................................................................. 10.40 10.53 9.96 10.11 9.52 12.21 4.91 4.38 17.77

Loans (including federal funds sold and securities purchased 

under agreements to resell) ................................................................ 59.62 59.53 58.96 60.52 54.13 61.24 63.30 65.11 19.31

All other assets........................................................................................ 6.53 6.47 7.45 7.29 7.95 3.52 9.11 7.57 46.67

Total equity capital3 ................................................................................ 6.81 6.92 6.72 6.81 6.44 7.50 1.88 1.14 19.97

Of total assets other than cash and U.S. Treasury securities:

Total equity capital3 .............................................................................. 8.514 8.64 8.48 8.41 8.70 9.13 2.414 23.72 1.464

Memoranda

Standby letters of credit— total .................................................................. 28,738,267 28,091,127 26,402,672 17,394,299 9,008,373 1,688,455 647,140 647,140 0

Time certificates of deposits in denominations of $100,000 or m o re ......... 190,731,518 188,162,811 144,140,455 110,111,784 34,028,671 44,022,356 2,568,707 2,568,707 0

Other time deposits in amounts of $100,000 or m ore................................. 27,525,589 26,486,357 22,577,120 18,614,044 3,963,076 3,909,237 1,039,232 1,039,232 0

Number of banks at end of period .............................................................. 14,738 14,364 5,425 4,448 977 8,939 374 283 91

Note: Refer to footnotes on Table 106.

ASSETS AND LIABILITIES OF BANKS 1 67

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Federal Reserve Bank of St. Louis
T ab le 108. ASSETS AND LIABILITIES OF ALL MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE 30, 1979 AND DECEMBER 31, 1979 

BANKS GROUPED BY INSURANCE STATUS 

(Amounts in thousands of dollars)

June 30, 1979 December 31, 1979

Asset, liability, or surplus account item

Total Insured Noninsured1 Total Insured Noninsured1

Total Assets .............................................................................................................................................. 157,242,653 145,521,512 11,721,141 157,859,312 147,112,481 10,746,831

Cash and due from depository institutions ..................................................................................... 2,830,649 2,607,063 223,586 3,140,377 2,929,219 211,158

Currency and c o in .............................................................................................................................

Demana balances with com m ercial banks in the United States ...............................................

411,501 361,548 49,953 473,846 425,007 48,839

797,327 718,935 78,392 870,569 808,144 62,425„

Other balances with depository institutions ................................... ............................................... 1,447,9642 1,367,882 80,082 2 1,644,0522 1,558,068 85,984

Cash items in process of collection 173,857 158,698 15,159 151,910 138,000 13,910

Securities— to ta l................................................................................................................................... 47,097,348 44,203,348 2,894,000 46,074,243 43,494,247 2,579,996

U.S. Treasury, agency, and corporation o b lig atio ns ................................................................... 18,367,853 17,045,936 1,321,917 18,565,349 17,394,228 1,171,121

Maturing in 1 year and le s s............... ......................................................................................... 1,726,983 1,551,395 175,588 1,563,546 1,423,345 140,201

Maturing in over 1 thru 5y e a rs..................................................................................................

Maturing in over 5 thru 10 ye ars................................................................................................

3,409,454 3,047,227 362,227 3,254,881 2,904,333 350,548 1,958,324 1,712,440 245,884 1,597,005 1,360,848 236,157

Maturing over 10 ye a rs............................................................................................................... 11,273,0922 10,734,874 538,2182 12,149,9172 11,705,702 444,2152

Corporate bonds ............................................................................................................................... 17,457,654 16,675,798 781,856 16,772,562 16,129,261 643,301

Obligations of States and political subdivisions in the U .S .......................................................... 3,117,022 3,071,833 45,189 2,889,680 2,840,790 48,890

Other bonds, notes and debentures .............................................................................................. 3,459,922 3,246,263 213,659 3,338,513 3,106,129 232,384

Corporate stock— totcl ....................................................................................................................

Bank................................................................................................................................................

4,694,897 4,163,518 531,379 4,508,139 4,023,839 484,300

493,301 381,344 111,957 439,486 346,793 92,693

O th e r.............................................................................................................................................. 4,201,596 3,782,174 419,422 4,068,653 3,677,046 391,607

Federal funds sold and securities purchased under agreements to resell .............................. 4,193,503 3,864,002 329,501 2,929,750 2,688,582 241,168

Loans, n e t.............................................................................................................................................. 98,898,575 90,870,937 8,027,638 101,351,259 93,869,281 7,481,978

Real estate loans, gross ................................................................................................................. 94,747,5412 87,199,825 7,547,716 96,244,129 89,276,017 6,968,112

Less: Unearned incom e............................................................................................................... 568,851 546,429 22,422 549,733 529,384 20,349

Less: Allowance for possible loan losses ................................................................................. 209,521 195,457 14,064 183,655 173,180 10,475

Real estate loans, net ................................................................................................................. 93,969,169 86,457,939 7,511,230 95,510,741 88,573,453 6,937,288

Construction and land developm ent..................................................................................... 1,764,769 1,608,740 156,029 1,826,045 1,672,333 153,712

Secured by farm land ............................................................................................................... 46,528 37,763 8,765 44,671 37,105 7,566

Secured by residential properties:

Secured by 1- to 4-family residential properties:

Insurea by FHA or guaranteed byVA .......................................................................... 22,093,705 21,005,513 1,088,192 21,488,284 20,496,935 991,349

Conventional.................................................................................................................... 40,194,8782 35,219,906 4,974,9722 42,359,3902 37,742,289 4,617,1012

Secured multifamily (5 or more) residential properties:

Insured by FHA ............................................................................................................... 2,984,128 2,962,077 22,051 2,886,823 2,866,818 20,005

Conventional.................................................................................................................... 12,451,901 12,010,065 441,836 12,381,109 11,999,096 382,013

Secured by nonfarm nonresidential properties................................................................... 15,211,632 14,355,761 855,871 15,257,807 14,461,441 796,366

Other loans, gross ........................................................................................................................... 5,268,380 4,711,338 557,042 6,226,081 5,635,742 590,339

Less: Unearned incom e............................................................................................................... 327,225 2 288,827 38,3982 370,440 328,944 41,496

Less: Allowance for possible loan losses ................................................................................. 11,749 9,513 2,236 15,123 10,970 4,153

Other loans, n e t............................................................................................................................. 4,929,406 4,412,998 516,408 5,840,518 5,295,828 544,690

Loans to financial institutions:

To real estate investment trusts and mortgage companies.................................................... 4,165 4,155 10 1,699 1,689 10

To domestic commercial and foreign banks ............................................................................ 205,371 205,127 244 228,118 228,118 0

To other financial institutions .................................................................................................... 83,178 83,008 170 48,013 47,843 170

Loans for purchasing or carrying securities (secured and unsecured):

To brokers and dealers in securities......................................................................................... 0 0 0 0 0 0

Other loans for purchasing or carrying securities...................................................................

Loans to finance agricultural production (except those secured primarily by real estate) . . . 

Commercial and industrial loans (except those secured primarily by real estate)...................

2,045

724

288,540

1,721

724

281,003

324

0

7,537

1,929

1,120

484,059

1,791

1,120

475,846

138

0

8,213

168 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Loans to individuals for household, family, and other personal expenditures 

(include purchased paper): installment loans to repair and modernize residential property.............................................

Other installment loans for household, family, and other personal expenditures...............

Single-payment loans for household, family, and other personal expenditures.................

All other lo a n s .........................................................................................................

749,948

2,561,074

996,890

376,445

672,015

2,260,278

921,612

281,695

77,933

300,796

75,278

94,750

858,823

2,871,333

1,425,031

305,956

776,860

2,577,044

1,318,908

206,523

81,963

294,289

106,123

99,433

Total net loans and s e c u ritie s ............................................................................................. 145,995,923 135,074,285 10,921,638 147,425,502 137,363,528 10,061,974

Bank premises, furniture and fixtures, capital leases, and other assets

representing bank prem ises ......................................................................................................

Real estate owned other than bank premises .............................................................................

Investment in unconsolidated subsidiaries and associated com panies ....................................

Other a sse ts............................................................................................................................

1,448,953

366,611

156,406

2,250,608

1,325,912

331,593

148,046

2,170,611

123,041

35,018

8,360

79,997

1,501,924

320,827

159,213

2,381,719

1,389,116

295,155

150,958

2,295,923

112,808

25,672

8,255

85,796

Total liabilities and surplus acco u n ts.................................................................................................. 157,242,653 145,521,512 11,721,141 157,859,312 147,112,481 10,746,831

Deposits— to ta l.....................................................................................................................................

Savings and time deposits— t o t a l........................................................

Savings d e p o sits-to ta l............................................................................................................... Subject to transfer by order (interest-brearing)................................................................... O th e r.....................................................................................

Time deposits-total ...................................................................................

Demand d ep osits-total............................................................................................................... Subject to transfer by order (noninterest-bearing) ............................................................ O th e r.....................................................................................................

143,110,820

140,656,427 

66,535,602

5,901,949

60,633,653

74,120,825

2,454,393

1,334,600

1,119,793

132,562,958

130,123,745

60,842,015

5,186,906

55,655,109

69,281,730

2,439,213

1,332,786

1,106,427

10,547,862

10,532,682

5,693,587

715,043

4,978,544

4,839,095

15,180

1,814

13,366

141,969,396

139,274,255 59,262,102

5,456,433

53,805,669

80,012,153

2,695,141

1,542,216

1,152,925

132,337,884

129,674,702

54,482,515

4,825,465

49,657,050

75,192,187

2,663,182

1,541,281

1,121,901

9,631,512

9,599,553

4,779,587

630,968

4,148,619

4,819,966

31,959

935 31,024

Miscellaneous liabilities:

Federal funds purchased and securities sold under agreements to repurchase .....................

Mortgage indebtedness and liability for capital leases ..............................................................

Other liabilities for borrowed m o n e y .............................................................................................

Other lia b ilitie s..................................................................................................

1,084,858

66,434

1,066,177

1,043,909

1,075,003

65,240

999,444

888,503

9,855

1,194

66,733

155,406

1,644,197 

67,093 

2,043,672 

1,025,754

1,643,214

65,840

1,959,463

876,263

983

1,253

84,209

149,491

Total lia b ilitie s ........................................................................................................................ 146,372,198 135,591,148 10,781,050 146,750,112 136,882,664 9,867,448

Subordinated notes and debentures ............................................................................................... 374,956 374,956 0 382,373 382,373 0

Sunilus accounts— to ta l......................................................................................................................

Surplus .......................................................................................................................................

Undivided p ro fits ..............................................................................................................................

Other surplus reserves .................................................................................................................

10,495,499

5,122,354

4,185,744

1,187,401

9,555,408

4,519,131

3,980,274

1,056,003

940,091

603,223

205,470

131,398

10,726,827

5,051,832

4,393,664

1,281,331

9,847,444

4,525,587

4,167,296

1,154,561

879,383

526,245

226,368

126,770

PERCENTAGES

Of total assets*

Cash and due from depository in stitu tio n s ....................................................................................

U.S. Treasury ................................................................................................................................

All other secu ritie s.................................................................................

Net loans (including federal funds sold and securities purchased under agreements to resell) .

All other assets ...................................................................................................................................

Total surplus accounts .......................................................................................................................

1.80

11.68

18.27

65.56

2.69

6.67

1.79

11.71

18.66

65.10

2.73

6.57

1.91

11.28

13.41

71.30

2.10

8.02

1.99

11.76

17.43

66.06

2.76

6.80

1.99

11.82

17.74

65.64

2.81

6.69

1.96

10.90

13.11

71.86

2.16

8.18

Of total assets other than cash and U.S. Government obligations:

Total surplus accounts .......................................................................................................... 7.71 7.59 9.24 7.88 7.77 9.39

Number of b a n ks ....................................................................................................... 462 r 322 140 463 324 139

2Does not include figures for banks who did not file Reports of Condition (42 in June, 53 in December). 

Totals adjusted due to incomplete reporting by some noninsured banks.

ASSETS AND LIABILITIES OF BANKS 1 6 9

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
T a b le 109. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1974-1979 

(Amounts in thousands of dollars)

Asset, liability, or expense item Dec. 31, 19742 Dec. 31, 19752 Dec. 31, 1976 Dec. 31, 1977 Dec. 31, 1978 Dec. 31, 1979

Total a s s e ts .......................................................................................................................................... 899,056,643 938,888,209 1,011,273,832 1,137,794,616 1,273,189,105 1,405,665,994

Cash and due from banks— to ta l...................................................................................................

Cash items in process of collection ..........................................................................................

Demand balances with com m ercial banks in the United S ta te s ...........................................

All other balances with depository institutions in the U.S. and with banks in

foreign countries......................................................................................................................

Balances with Federal B an ks.......................................................................................................

126,069,289

47,279,797

34,399,470

5,546,812

27,116,210

11,727,000

129,022,793

47,332,735

32,168,664

10,387,072

26,779,065

12,355,257

130,210,127

48,368,126

33,022,240

10,664,363

25,964,340

12,191,058

160,382,169

66,451,288

39,238,490

11,351,612

29,339,126

14,001,653

178,327,313

75,291,809

42,572,323

10,493,618

34,398,107

15,571,456

192,420,607

81,933,644

47,940,502

11,703,690

32,240,418

18,602,353

Securities— total .............................................................................................................................

U.S. Treasury securities............................................................................................................. Obligations of other U.S. Government agencies and corporations .....................................

Obligations of States and political subdivisions in the U.S.....................................................

All other securities ......................................................................................................................

193,877,525 51,867,904

31,090,271

96,771,409 14,147,941

227,831,583 81,008,162

33,285,855

100,801,799 12,735,767

249,964,940

96,884,312

34,324,587

103,505,149

15,250,892

258,404,575

95,960,613

35,812,026

112,898,620

13,733,316

268,777,856

89,699,426

42,316,375 123,510,734

13,251,321

285,484,061

88,221,453

49,313,676

132,568,154

15,380,778

Federal funds sold and securities purchased under agreements to re s e ll..........................

Loans, net ........................................................................................................................................

Plus: Allowances for possible loan losses ...............................................................................

Loans, to ta l........................................................................................................................................

Plus: Unearned income on loans ..............................................................................................

Loans gross .........................................................................................................................

38,944,238

493,064,162

5,871,660

498,935,822

7,258,209

506,194,031

131,739,920

0

6,030,121

74,580,012

7,543,920

43,585,867

45,204,515

9,187,663

18,226,897

184,074,531

103,692,681

32,942,938

11,126,994

9,001,883

27,631,598

22,989,268

14,067,824

725,885,925

37.361.788

488,721,442

6,070,344

494,791,786

7,489,884

502,281,670

136,196,154

0

6,370,212

77,029,917

5,899,737

46,896,288

38,967,664

10,879,410

20,138,952

175,946,906

106,848,796

33,509,251

12,351,630

8,667,742

29,099,650

23,220,523

13.303.788 

753,914,813

45,855,864

518,737,329

6,195,279

524,932,608

12,625,341

537,557,949

150,986,919 17,347,914

6,718,186

81,110,248

4,440,412

41,370,159

35,848,326

15,088,146

23,216,369

178,635,361

118,863,153

39,824,875

14,430,339

8,737,928

31,549,012

24,320,999

14,919,675

814,558,133

49,881,414

591,327,780

694,793

598,022,573

14,702,996

612,725,569

178,632,320 

21,389,331

7,730,264

96,757,037

4,907,100

47,848,588

36,816,981 

17,110,918 

25,713,073 

197,076,515 

141,257,446 

49,861,799

18,475,596

9,125,428

35,852,029

27,942,594

16,118,316

899,613,769

48,755,878

682,866,654

7,714,708

690,581,362

17,726,870

708,308,232

213,625,237 27,269,354

8,480,930

118,476,776

5,723,046

53,675,131

43,459,007

14,380,222

28,191,763

223,243,865

167,675,391 61,051,302

24,496,572

9,734,878

41,853,614

30,539,025

17,732,747

1,000,400,388

61,065,864

766,830,747

8,958,983

775,789,730

20,532,380

796,322,110

244,796,237

32,929,259

8,562,893

137,346,068

6,305,464

59,652,553

41,919,383

13,501,352

31,036,748

257,678,468

187,789,998

67,804,976

29,958,653

10,658,711

47,139,893

32,227,763

19,599,924

1,113,380,672

Real estate loans— t o t a l............................................................................................................. Construction and land development' ...................................................................................

Secured by farm land................................................................................................................ Secured by 1- to 4-family residential properties ............................................................... Secured by multi-family (5 or more) residential p rop e rties.............................................

Secured by nonfarm nonresidential properties...................................................................

Loans to financial in stitu tion s.....................................................................................................

Loans for purchasing or carrying se cu ritie s............................................................................

Loans to finance agricultural production and other loans to fa rm e rs ..................................

Commercial and industrial loans ..............................................................................................

Loans to individuals— to ta l......................................................... .................................................. To purchase private passenger automobiles on installment b a s is.......................................

Credit cards and related plans .................................................................................................. To purchase mobile homes (excluding travel trailers) ........................................................... All other installment loans for household, family and other personal

expenditures............................................................................................................................. Single payment loans for household, family and other personal

expenditures.............................................................................................................................

All other lo a n s........................................................................................................................................

Total loans and se cu ritie s..............................................................................................................

1 70 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Lease financing receivables .......................................................................................

Bank premises, furniture and fixtures, and other assets representing bank

p re m ise s....................................................................................................................

Real estate owned other than bank p re m ise s ..........................................................

All other a s s e ts .............................................................................................................

Total liab ilitie s and equity capital ..............................................................................

Business and personal deposits— total .................................................................

Individuals, partnerships, and corporations— demand .....................................

Individuals, partnerships, and corporations— sa vin g s.......................................

Individuals and nonprofit organizations-savings...........................................

Corporations and other profit organizations-savings1 ................................

Individuals, partnerships, and corporations— time ...........................................

Deposits accumulated for payment of personal loans— tim e ............................

Certified and officers’ checks, travelers’ checks, letters of credit— demand ..

Government deposits— t o t a l.....................................................................................

United States Government— d e m a n d ...................................................................

United States Government— savings1 .................................................................

United States Government— tim e ..........................................................................

States and political subdivisions— demand ........................................................

States and political subdivisions— savings1 ........................................................

States and political subdivisions— t im e ...............................................................

A ll other deposits— t o t a l............................................................................................

Demand ....................................................................................................................

Savings' .................................................................................................................... Time ..........................................................................................................................

Total deposits .............................................................................................................

Demand ....................................................................................................................

Savings......................................................................................................................

Time ..........................................................................................................................

M iscellaneous lia b ilitie s — total ...............................................................................

Federal funds purchased and securities sold under agreements to repurchase 

Interest bearing demand notes issued to the U.S. Treasury and other

liabilities for borrowed money ..........................................................................

Mortgage indebtedness and liability for capitalized le a s e s ................................

All other lia b ilitie s ....................................................................................................

Total lia b ilitie s (excluding subordinated notes and debentures)................

Subordinated notes and d e b e n tu re s ...................................................................

Equity ca p ita l— total ..............................................................................................

Preferred stock— par v a lu e ................................................................................

Common stock— par v a lu e ................................................................................

S u rp lu s ..................................................................................................................

Undivided profits and reserve for contingencies and other capital 

reserves ...........................................................................................................

3,056,755

14,288,523

811,239

28,944,912

4,413,014

15,598,231

1,909,555

34,029,803

5,119,280

16,702,977

2,894,011

41,789,304

5,810,261

18,344,595

3,095,496

50,548,326

7,657,996

20,551,097

2,475,901

63,776,410

9,951,916

22,605,926

2,085,954

65,220,919

899,056,643 938,888,209 1,011,273,832 1,137,794,616 1,273,189,105 1,405,665,994

606,374,826

237,069,468

136.074.273

136.074.273

0

222,482,603

369,690

10,378,792

74,215,373

4,822,299

0

500,147

18,706,776

0

50,186,151

65,522,043 43,322,732

0

22,199,311

746,112,242

314,300,067

136.074.273 295,737,902

88,107,647

51,217,439

4,814,560

725,190

31,350,458

647,239,798

247,869,290

160.653.632

160.653.632

0

227,691,785

279,512

10,745,579

70,707,733

3,126,631

0

588,481

18,879,180

0

48,113,441

63,078,870

40,800,386

0

21,998,972

780,746,889

321,421,066

160.653.632

298,672,191

87,786,577

52,189,647

4,604,259

775,396

30,217,275

697,387,703

256,806,660

197,660,954

189,028,878

8,632,076

231,211,673

144,385

11,564,031

71,946,030

3,042,572

56,735

686,053

17,989,214

6,050,857

44,120,599

61,593,152

44,566,366

113,672

16,913,114

830,926,885

333,968,843

203,882,218

293,075,824

102,975,877

70,298,626

5,080,647

804,996

26,791,608

777,177,835

287,843,595

215,197,708

204,453,839

10,743,869

259,896,427

100,303

14,139,802

84,641,977

7,341,318

58,209

828,852

19,208,773

4,789,442

52,415,383

67,453,933 50,222,044

28,235

17,203,654

929,273,745

378,755,532

220,073,594

330,444,619

123,501,267

82,952,495

6.694,413

1,038,857

32,815,502

857,642,324

309,347,998

216,503,446

205,568,072

10,935,374

316,146,234

109,598

15,535,048

88,240,496

2,725,862

82,733

866,499

19,202,176

4,298,654

61,064,572

70,501,728 53,474,157

43,766

16,983,805

1,016,384,548

400.,285,241

226,928,599

395,170,708

163,522,078

91,291,670

22,791,813

2,035,029

47,403,566

933,830,811

334,126,108

203.132.354 

193,337,392

9,794,962

380,623,591

0

15,948,758

86,768,339

2,406,844

72,882

949,192

18,932,709

3,794,443

60,612,269

74,006,025

60,138,935 50,347

13,816,743

1,094,605,175

431.553.354

207,050,026

456,001,795

207,863,851

112,149,032

27,875,285

2,106,731

65,732,803

834,219,889

4,258,989

60,577,765

43,460

14,788,893

25,312,574

20,432,838

868,533,466

4,398,892

65,955,851

47,881

15,565,026

26,706,053

23,636,891

933,902,762

5,122,527

72,248,543

67,328

16,221,264

28,894,323

27,065,628

1,052,775,012

5,739,194

79,280,410

98,791

17,265,237

31,085,492

30,830,890

1,179,906,626

5,864,838

87,417,641

113,851

18,157,997

33,202,557

35,943,236

1,302,469,026

5,955,812

97,241,158

125,890

20,273,743

35,328,623

41,512,902

ASSETS AND LIABILITIES OF BANKS

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
ro

T a b le 109. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1974-1979-C O N TINU E D 

(Amounts in thousands of dollars)

Asset, liability, or expense item Dec. 31, 19742 Dec. 31, 19752 Dec. 31, 1976 Dec. 31, 1977 Dec. 31, 1978 Dec. 31, 1979

PERCENTAGES

Of total assets:

Cash and due from depository in stitu tio n s................................................................................... 14.02 13.74 12.88 14.10 14.01 13.69

U.S. Treasury securities and obligations of other U.S. Government agencies 

and corp oration s........................................................................................................................... 9.23 12.17 12.97 11.58 10.37 9.78

All other securities ........................................................................................................................... 12.34 12.09 11.74 11.13 10.74 10.53

Loans (including federal funds sold and securities purchases under agreements 

to resell) ........................................................................................................................................ 59.83 56.68 56.44 56.94 58.07 59.53

All other a s s e ts ................................................................................................................................. 4.59 5.31 5.96 6.25 6.81 6.47

Total equity c a p ita l........................................................................................................................... 6.74 7.02 7.14 6.97 6.87 6.92

Of total assets other than cash and U.S. Treasury securities:

Total equity capital ........................................................................................................................... 8.40 9.05 9.21 8.99 8.70 8.64

Number of banks at end of period ..................................................................................................... 14,228 14,384 14,411 14,412 14,391 14,364

1 Not available before 1976.

2Where possible, figures are restated to reflect current reporting requirements. For amounts on an “ as reported” basis, see Annual Reports of prior years.

FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T a b le 110. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS (DOMESTIC AND FOREIGN OFFICES), 

UNITED STATES AND OTHER AREAS, 1974-1977

Dec. 31, 1974 Dec. 31, 1975 Dec. 31, 1976 June 30, 1977 Dec. 31, 19771

Total a s s e ts ...........................................................................

Cash and due from b a n k s ...............................................................................................................

Securities— to ta l.............................................................................................................................. U.S. Treasury securities............................................................................................................ Obligations of U.S. Government agencies and corporations...............................................

Obligations of States and political subdivisions.....................................................................

Other bonds, notes, and debentures ........................................................................................

Corporate stock ..................................................................

Trading account securities ........................................................................................................

Federal funds sold and securities purchased under agreements to resell ..............................

Loans, n e t.........................................................................................................................................

Plus: Reserve for possible loan losses2 ..................................................................................

Loans, to ta l.......................................................................................................................................

Direct lease fin a n c in g .....................................................................................................................

Bank prem ises, furniture and fixtures, and assets representing bank premises ....................

Real estate owned other than bank p re m ise s..............................................................................

Investments in unconsolidated subsidiaries and associated companies ................................

Custom ers liability on acceptances outstanding ........................................

Other assets ........................................................................

Total liabilities and equity capital .....................................................

Total d e p o s its .......................................................................

Federal funds purchased and securities sold under agreements to repurchase ............

Other liabilities for borrowed money .................................................

Mortgage indebtedness .............................................................

Acceptances executed and outstanding ...............................................

Other liabilities ......................................................................

Total liabilities (excluding subordinated notes and debentures).......................

Subordinated notes and deb en tu res ..................................................

Reserves on loans and securities— total2 ..............................................

Reserve for losses on lo a n s.......................................................

Other reserves on lo a n s...........................................................

Reserves on securities............................................................

Equity capital— t o ta l.................................................................

MEMORANDA

Standby letters of credit outstanding3 ..................................................

Time certificates of $100,000 or more:3

Time certificates of d e p o sit.........................................................

Other time deposits ...............................................................

1,045,972,427

178,295,259

197,019,318

51,886,435 31,088,271

96,800,855

9,201,132

8,042,625

1,095,388,957

189,406,997

231,527,434

80,963,492

33,281,405

100,873,178

10,710,644

5,698,715

1,182,390,845

203,772,449 

254,383,382 

96,874,136

34,323,582

103,588,597

f 9,594,671

t- 1,750,989 8,251,407

1,228,366,375

208,283,772

259,474,871

97,233,796

34,389,521

108,720,777

9,864,455

1,809,269

7,457,053

1,339,393,026

242,983,142

264,525,796

96,026,151

35,818,251

113,019,592

10,542,996

1,853,806

7,265,000

39,005,103

580,596,623

3,273,680

14,674,995

828,853

750,218

10,632,747

20,895,631

36,992,511

586,055,773

4,054,812

16,054,291

1,935,839

789,718

7,095,983

21,475,599

45,861,131

620,866,854

6,347,839

627,214,693

5,816,434

17,242,930

2,974,073

954,500

11,864,784

18,654,308

40,899,161

656,224,103

6,674,638

662,898,741

6,186,765

17,944,356

3,162,192

941,211

14,433,352

20,816,592

49,845,033

715,851,991

6,894,344

722,746,335

6,977,301

19,010,491

3,134,042

987,244

14,280,877

21,797,109

1,045,972,427 1,095,388,957 1,182,390,845 1,228,366,375 1,339,393,026

871,225,194

50,980,062

8,368,159

725,166

14,131,257

28,426,938

973,856,776

4,261,373

8,779,607

8,466,353

144,446

168,808

59,074,671

915,856,039

52,609,050

7,934,301

774,450

11,291,867

29,031,187

1,017,496,894

4,422,484

9,193,375

8,791,680

212,260

189,435

64,276,204

991,913,006

70,435,494

9,510,108

826,196

12,048,179

20,171,609

1,104,904,592

5,220,566

72,265,687

1,022,062,067

75,820,815

11,563,041

856,439

14,594,467

22,334,880

1,147,231,709

5,450,465

75,684,201

1,116,617,556

83,315,006

13,146,839

1,048,297

14,432,321

25,711,530

1,254,271,549

5,830,565

79,290,912

16,410,420

114,172,181

23,307,985

17,198,835

112,053,745

24,503,572

20,043,593

135,756,267

26,366,568

Number of banks ................................................................................................................................ 14,228 14,384 14,411 14,441 14,412

For more detailed 1977 data, see Assets and Liabilities, Commercial and Mutual Savings Banks, December 31, 1977.

^Changes in the reporting of loan losses beginning in 1976 are discussed on page 160.

Data not available prior to 1976.

ASSETS AND LIABILITIES OF BANKS 173

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 110A. A S S E T S AN D LIABILITIES OF INSU RED CO M M E RC IAL BANKS (D O M E S TIC AN D FO RE IG N O FFICES), 

U N IT E D STATES AND OTHER AREAS, D E CE M B ER 31, 19781

Banks with foreign offices

Domestic only 

banks and 

reporting 

branches

Foreign offices 

and Edge and 

agreement 

subsidiaries Domestic offices

Consolidated

reports

Consolidated 

Total — Columns 1 

and 4

Total Assets.................................................................................................................. 660,586,728 239,209,434 608,421,045 847,630,479 1,508,217,207

Cash and due from depository institutions .................................................................

Cash items in process of collection and unposted debits ......................................

Dtemand balances with commercial banks in the U .S...............................................

Time and savings balances with commercial banks in the U .S...............................

Balances with other depository institutions in the U .S.............................................

Balances with banks in foreign countries.................................................................

With foreign branches of other U.S. b a n ks.........................................................

With other banks in foreign countries .................................................................

Balances with central b anks .....................................................................................

Balances with Federal Reserve banks .................................................................

Balances with other central b a n ks.......................................................................

Currency and coin ....................................................................................................

71,047,051

17,115,855

25,597,499

2,673,411

2,063,973

1,347,451

N/A

N/A

12.553.829

12.553.829 

N/A

9,695,033

96,181,149

1,883,165

4,610,696

1,118,505

230,887

83,642,267

18,391,587

65,250,680

4,459,660

566,068

3,893,592

235,969

106,832,727

58,020,871

16,959,173

983,473

75,165

3,080,125

529,493

2,550,632

21,866,740

21,844,206

22,534

5,847,180

203,013,876

59,904,036

21,569,869

2,101,978

306,052

86,722,392

18,921,080

67,801,312

26,326,400

22,410,274

3,916,126

6,083,149

274,060,927

77,019,891

47,167,368

4,775,389

2,370,025

88,069,843

N/A

N/A

38,880,229

34,964,103

N/A

15,778,182

Securities— to ta l..........................................................................................................

U.S. Treasury securities ..........................................................................................

Obligations of U.S. Government agencies and corporations..................................

Obligations of States and political subdivisions.......................................................

Other bonds, notes, and debentures.......................................................................

Corporate s to c k ........................................................................................................

Trading account securities.......................................................................................

174,474,133

59,070,019

30,077,067

80,683,209

3,836,329

483,294

324,215

7,724,550

41,607

4,278

203,293

6,611,403

171,520

692,449

94,121,950

30,629,407

12,239,201

42,645,915

1,544,865

954,465

6,108,097

101,846,500

30,671,014

12,243,479

42,849,208

8,156,268

1,125,985

6,800,546

276,320,633

89,741,033

42,320,546

123,532,417

11,992,597

1,609,279

7,124,761

Federal funds sold and securities purchased under agreements to resell............ 24,919,434 199,066 23,809,210 24,008,276 48,927,710

Loans, net ....................................................................................................................

Less: reserve for possible loan lo sse s.....................................................................

Loans, total ..................................................................................................................

Les ' unearned income on lo a n s .............................................................................

Loans, gross ................................................................................................................

Real estate loans (including only loans secured primarily by real estate) ..............

Loans to financial institutions .................................................................................

To real estate investment trusts and mortgage com panies ................................

To commercial banks in the U .S...........................................................................

To U.S. branches and agencies of foreign banks ..........................................

To other commercial banks in the U.S.............................................................

To banks in foreign countries ................................................................

To foreign branches of other U.S. banks ...............................................

To other banks in foreign countries.................................................................

To finance companies in the U.S..............................................................

To other financial institutions..................................................................

Loans for purchasing or carrying securities (secured and unsecured) ...............

Loans to farmers .............................................................................. .

Commercial and industrial loans (except those secured primarily by real estate) ..

To U.S. addressees (domicile) ..............................................................

To non U.S. addressees (dom icile).....................................................................

Loans to individuals for household, family and other personal expenditures .......

All other loans ........................................................................................

Loans to foreign governments and official institutions ......................................

Other loans............................................................................................................

Direct lease financing....................................................................................................

366,064,370

3,575,398

369,639,768

12,473,258

382,113,026

138,175,458

4,505,362

1,095,496

560,278

N/A

N/A

228,130

N/A

N/A

633,144

1,988,314

2,574,469

23,951,853

93,274,518

N/A

N/A

113,376,495

6,254,872

N/A

N/A

1,696,007

143,903,749

242,417

144,146,166

1,026,444

145,172,608

4,335,879

22,780,815

80,891

2,348,304

447,723

1,900,581

15,540,309

377,057

15,163,252

284.177

4,527,134

961,145

455,782

85,542,095

3,379,190

82,162,905

4,787,396

26,309,497

22,991,591

3,317,906

1,405,246

314,040,754

4,138,994

318,179,748

5,175,576

323,355,326

74,579,460

38,812,812

7,218,826

4,202,316

1,670,141

2,532,175

9,922,082

466,657

9,455,425

8,066,647

9,402,941

11,805,591

4,238,840

128,818,212

119,830,128

8,988,084

53,740,786

11,359,623

2,429,658

8,929,965

5,955,448

457,944,503

4,381,411

462,325,914

6,202,020

468,527,934

78,915,339

61,593,628

7,299,717

6,550,620

2,117,864

4,432,756

25,462,391

843,714

24,618,677

8,350,825

13,930,075

12,766,736

4,694,622

214,360,307

123,209,318

91,150,989

58,528,182

37,669,120

25,421,249

12,247,871

7,360,694

824,008,873

7,956,809

831,965,682

18,675,278

850,640,960

217,090,797

66,098,990

8,395,213

7,110,898

N/A

N/A

25,690,521

N/A

N/A

8,983,969

15,918,389

15,341,205

28,646,475

307,634,824

N/A

N/A

171,904,677

43,923,992

N/A

N/A

9,056,701

Bank premises, furniture and fixtures, and other assets representing bank premises 12,363,283 824,681 8,149,433 8,974,114 21,337,397

Real estate owned other than bank premises ........................................................... 922,603 119,810 1,464,912 1,584,722 2,507,325

1 74 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Investments in unconsolidated subsidiaries and associated com panies.................... 47,549 -1,337,566 2,361,274 1,023,708 1,071,257

Customer’s liability of acceptances outstanding ....................................................... 343,721 3,797,994 18,657,383 22,455,377 22,799,098

Other assets................................................................................................................. 8,708,577 -13,609,245 33,027,954 19,418,709 28,127,286

Total liabilities and equity ca p ita l............................................................................ 660,586,728 239,209,434 ^ 608,421,045 847,630,479 1,508,217,207

Total deposits.......................................................................................................... 573,201,984 220,619,569 439,811,012 660,430,581 1,233,632,565

Individuals, partnerships and corporations....................................................... 496,960,075 68,307,952 342,052,178 410,360,130 907,320,205

Demand ........................................................................................................... 171,258,720 N/A 137,446,898 N/A N/A

Savings ........................................................................................................... 146,437,961 N/A 69,656,522 N/A N/A

T im e ................................................................................................................. 179,263,394 N/A 134,948,758 N/A N/A

U.S. Governm ent................................................................................................ 2,067,676 203,789 1,590,578 1,794,367 3,862,043

Demand .......................................................................................................... 1,629,925 N/A 1,079,468 N/A N/A

Savings ........................................................................................................... 56,212 N/A 26,456 N/A N/A

T im e ................................................................................................................. 381,545 N/A 484,654 N/A N/A

States and political subdivisions in the U.S........................................................ 57,227,388 225,363 27,145,004 27,370,367 84,597,755

Demand ........................................................................................................... 14,275,286 N/A 4,876,954 N/A N/A

Savings ........................................................................................................... 3,566,455 N/A 714,585 N/A N/A

T im e ................................................................................................................. 39,385,647 N/A 21,553,465 N/A N/A

Foreign governments and official institutions ................................................... 155,951 33,490,372 8,128,766 41,619,138 41,775,089

Demand .......................................................................................................... 40,300 N/A 1,797,711 N/A N/A

Savings ........................................................................................................... 1,139 N/A 16,101 N/A N/A

T im e ................................................................................................................. 114,515 N/A 6,314,954 N/A N/A

Deposits of commercial banks in the U.S............................................................ 8,679,749 15,696,373 42,652,868 58,349,241 67,028,990

Demand .......................................................................................................... 7,147,904 N/A 35,310,734 N/A N/A

Savings .......................................................................................................... 3,188 N/A 414 N/A N/A

T im e ................................................................................................................. 1,528,657 N/A 7,341,720 N/A N/A

Deposits of banks in foreign countries ............................................................. 475,196 99,950,405 9,404,204 109,354,609 109,829,805

Demand .......................................................................................................... 228,107 N/A 8,222,583 N/A N/A

Savings .......................................................................................................... 0 N/A 195 N/A N/A

T im e ................................................................................................................. 247,089 N/A 1,181,426 N/A N/A

All other deposits................................................................................................ 983,252 N/A N/A N/A 983,252

Demand .......................................................................................................... 719,797 N/A N/A N/A N/A

Savings ........................................................................................................... 22,729 N/A N/A N/A N/A

T im e ................................................................................................................. 240,726 N/A N/A N/A N/A

Certified and officers checks, travelers checks, and letters of credit sold for cash ... 6,652,697 2,745,315 8,837,414 11,582,729 18,235,426

Federal funds purchased and securities sold under agreements to repurchase 21,137,970 109,666 70,153,700 70,263,366 91,401,336

Interest bearing demand notes and other liabilities for borrowed m o n e y.................. 6,218,268 10,181,142 16,569,445 26,750,587 32,968,855

Mortgage indebtedness .............................................................................................. 905,452 43,135 1,128,767 1,171,902 2,077,354

Acceptances executed and outstanding...................................................................... 344,036 3,838,014 18,839,318 22,677,332 23,021,368

Other liabilities............................................................................................................. 7,591,874 4,100,385 19,823,468 23,923,853 31,515,727

Total liabilities (excluding subordinated notes and debentures) ............................ 609,399,584 238,891,911 566,325,710 805,217,621 1,414,617,205

Subordinated notes and debentures ......................................................................... 2,575,147 293,832 3,289,691 3,583,523 6,158,670

Equity capital— to ta l.................................................................................................. 48,611,997 23,691 38,805,644 38,829,335 87,441,332

MEMORANDA

Standby letters of credit outstanding.......................... 2,428,292 6,852,521 16,438,715 23,291,236 25,719,528

Time certificates of $100,000 or more:

Time certificates of deposits .................................................................................. 67,456,718 N/A 110,068,449 N/A N/A

Other time deposits ................................................................................................ 9,423,712 N/A 17,139,007 N/A N/A

Number of b a n k s........................................................................................................ 14,236 _ _ 155 14,391

Number of reporting branches.................................................................................... 19 - - 19

1 Totals for items that are not explicitly reported are derived mathematically. 

N/A Not available.

CJI ASSETS AND LIABILITIES OF BANKS

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 110B. A S S E T S AND LIABILITIES OF INSURED C O M M E R C IA L BAN K S (D O M E S TIC AN D FO R E IG N O FFICES), 

U NITED STATES AND OTHER AR EA S, DE C E M B ER 31, 1 9 7 9 1

Domestic only 

banks and 

reporting 

branches

Banks with foreign offices

Consolidated 

Total — Columns 1 

and 4

Foreign offices 

and Edge and 

agreement 

subsidiaries Domestic offices

Consolidated

reports

Total Assets.................................................................................................................. 712,740,109 291,127,646 688,210,246 979,337,892 1,692,078,001

Cash and due from depository institutions ................................................................. 76,793,623 114,608,166 115,199,762 229,807,928 306,601,551

Cash items in process of collection and unposted debits ...................................... 18,116,786 1,785,860 63,722,234 65,508,094 83,624,880

Demand balances with commercial banks in the U.S............................................... 28,120,209 5,186,135 19,812,146 24,998,281 53,118,490

Time and savings balances with commercial banks in U.S...................................... 3,058,221 1,718,509 901,042 2,619,551 5,677,772

Balances with other depository institutions in the U.S............................................. 2,581,048 68,539 56,949 125,488 2,706,536

Balances with banks in foreign countries................................................................. 2,045,511 102,042,099 2,723,432 104,765,531 106,811,042

With foreign branches of other U.S. b a n ks......................................................... N/A 26,089,816 994,385 27,084,201 N/A

With other banks in foreign countries ................................................................. N/A 75,952,283 1,729,047 77,681,330 N/A

Balances with central banks..................................................................................... 11,610,565 3,518,875 20,670,745 24,189,620 35,800,185

Balances with Federal Reserve banks ..................................................................... 11,610,565 420,761 20,629,848 21,050,609 32,661,174

Balances with other central b a n ks ........................................................................... N/A 3,098,114 40,897 3,139,011 N/A

Currency and coin .................................................................................................... 11,261,283 288,149 7,313,214 7,601,363 18,862,646

Securities— to ta l.......................................................................................................... 180,654,263 8,676,287 104,593,025 113,269,312 293,923,575

U.S. Treasury securities ......................................................................................... 57,941,042 205,023 30,280,411 30,485,434 88,426,476

Obligations of U.S. Government agencies and corporations.................................. 33,884,968 49,102 15,428,601 15,477,703 49,362,671

Obligations of States and political subdivisions....................................................... 84,289,498 475,313 48,042,973 48,518,286 132,807,784

Other bonds, notes, and debentures....................................................................... 3,584,790 6,631,241 1,668,164 8,299,405 11,884,195

Corporate stock ........................................................................................................ 491,907 169,430 1,003,196 1,172,626 1,664,533

Trading account securities....................................................................................... 462,058 1,146,178 8,169,680 9,315,858 9,777,916

Federal funds sold and securities purchased under agreements to resell.............. 36,013,875 354,941 24,907,823 25,262,764 61,276,639

Loans, net .................................................................................................................... 392,337,889 160,104,659 371,417,294 531,521,953 923,859,842

Less: reserve for possible loan lo sse s..................................................................... 3,944,967 224,756 5,013,752 5,238,508 9,183,475

Loans, total .................................................................................................................. 396,282,856 160,329,415 376,431,046 536,760,461 933,043,317

Less: unearned income on lo a n s ............................................................................. 13,867,819 1,390,457 6,594,843 7,985,300 21,853,119

Loans, gross ................................................................................................................ 410,150,675 61,719.872 383,025,889 544,745,761 954,896,436

Real estate loans (including only loans secured primarily by real estate) .............. 150,244,567 5,347,419 93,699,271 99,046,691 249,291,258

Loans to financial institutions ................................................................................. 4,032,783 27,894,848 37,620,545 65,515,393 69,548.176

To real estate investment trusts and mortgage com panies ................................ 906,529 103,893 6,538,057 6,641,950 7,548,479

To commercial banks in the U .S........................................................................... 530,572 537,932 3,739,925 4,277,857 4,808,429

To U.S. branches and agencies of foreign banks .......................................... N/A 256,091 1,396,410 1,652,501 N/A

To other commercial banks in the U .S ............................................................. N/A 281,841 2,343,515 2,625,356 N/A

To banks in foreign countries ............................................................................. 279,637 20,337,528 7,583,348 27,920,876 28,200,513

To foreign branches of other U.S. banks......................................................... N/A 320,276 314,471 634,747 N/A

To other banks in foreign countries................................................................. N/A 20,017:252 7,268,877 27,286,129 N/A

To finance companies in tne U.S.......................................................................... 534,672 294,524 8,891,137 9,185,661 9,720,333

To other financial institutions............................................................................... 1,781,373 6,620,971 10,868,078 17,489,049 19,270,422

Loans for purchasing or carrying securities (secured and unsecured) .................. 2,381,916 1,072,287 11,021,335 12,093,622 14,475,538

Loans to farmers ...................................................................................................... 26,136,821 422,273 4,882,787 5,305,060 31.441,881

Commercial and industrial loans (except those secured primarily by real estate) .. 99,500,357 94,477,628 157,148,759 251,626,386 351,126,743

To U.S. addressees (domicile) ........................................................................... N/A 5,059,717 148,717,088 153,776,804 N/A

To non U.S. addressees (dom icile)..................................................................... N/A 89,417,911 8,431,671 97,849,582 N/A

Loans to individuals for household, family and other personal expenditures 121,099,677 5,532,886 66,085,494 71,618,380 192,718,057

All other loans .......................................................................................................... 6,754,554 26,972,531 12,567,698 39,540,229 46,294,783

Loans to foreign government and official institutions ........................................ N/A 23,510,562 1,842,733 25,353,295 N/A

Other loans............................................................................................................ N/A 3,461,969 10,724,965 14,186,934 N/A

Direct lease financing.................................................................................................... 1,895,218 1,823,521 8,047,517 9,871,038 11,766,256

Bank premises, furniture and fixtures, and other assets representing bank premises 13,518,925 973,800 9,057,121 10,030,921 23,549,846

Real estate owned other than bank premises ............................................................. 892,217 122,099 1,117,304 1,239,403 2,131,620

1 76 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Investments in unconsolidated subsidiaries and associated com panies.................... 42,259 517,763 552,626 1,070,389 1,112,648

Customer’s liability of acceptances outstanding ........................................................ 402,896 6,756,150 25,398,900 32,155,050 32,557,946

Other assets................................................................................................................. 10,188,944 -2,809,740 27,918,874 25,109,134 35,298,078

Total liabilities and equity ca p ita l............................................................................ 712,740,109 291,127,646 688,210,246 979,337,892 1,692,078,001

Total deposits...........................................................................................................

Individuals, partnerships and corporations........................................................

Demand ...........................................................................................................

Savings ...........................................................................................................

T im e .................................................................................................................

U.S. Government.................................................................................................

Demand ...........................................................................................................

Savings ...........................................................................................................

T im e .................................................................................................................

States and political subdivisions in the U.S.........................................................

Demand ...........................................................................................................

Savings ...........................................................................................................

T im e .................................................................................................................

Foreign governments and official institutions ....................................................

Demand ...........................................................................................................

Savings ...........................................................................................................

T im e .................................................................................................................

Deposits of commercial banks in the U.S............................................................

Demand ...........................................................................................................

Savings ...........................................................................................................

T im e .................................................................................................................

Deposits of banks in foreign countries ..............................................................

Demand ...........................................................................................................

Savings ...........................................................................................................

T im e .................................................................................................................

All other deposits................................................................................................

Demand ...........................................................................................................

Savings ...........................................................................................................

T im e .................................................................................................................

615,266,936

538,328,449

178,741,370

134,100,569

225,486,510

1,863,548

1,417,407

49,591

396,550

56,895,859

13,598,401

3,176,754

40,120,704

211,233

40,226

954

170,053

9,752,594

7,883,540

6,321

1,682,733

448,537

249,019

0

199,518

1,091,858

738,333

20,881

332,644

272,493,380

87,895,077

N/A

N/A

N/A

215,333

N/A

N/A

N/A

290,247

N/A

N/A

N/A

36,769,246

N/A

N/A

N/A

17,936,120

N/A

N/A

N/A

126,247,938

N/A

N/A

N/A

N/A

N/A

N/A

N/A

475,307,831

376,165,099

154,800,406

68,662,288

152,702,405

1,553,503

980,947

21,155

551,401

26,150,452

5,280,004

608,035

20,262,413

6,846,690

2,110,900

20,720

4,715,070

45,343,782

40,077,903

355

5,265,524

10,199,011

8,924,042

169

1,274,800

N/A

N/A

N/A

N/A

747,801,211

464,060,176

N/A

N/A

N/A

1,768,836

N/A

N/A

N/A

26,440,699

N/A

N/A

N/A

43,615,936

0

0

0

63,279,902

0

0

0

136,446,949

N/A

N/A

N/A

N/A

N/A

N/A

N/A

1,363,068,147

1,002,388,625

N/A

N/A

N/A

3,632,384

N/A

N/A

N/A

83,336,558

N/A

N/A

N/A

43,827,169

N/A

N/A

N/A

72,852,496

N/A

N/A

N/A

136,895,486

N/A

N/A

N/A

1,091,858

N/A

N/A

N/A

Certified and officers checks, travelers checks, and letters of credit sold for cash ... 6,854,858 3,139,419 9,049,294 12,188,713 19,043,571

Federal funds purchased and securities sold under agreements to repurchase 24,801,700 197,856 87,347,332 87,545,188 112,346,888

Interest-bearing demand notes and other liabilities for borrowed m one y.................. 5,933,394 11,673,614 21,919,296 33,592,910 39,526,304

Mortgage indebtedness .............................................................................................. 900,998 43,478 1,204,973 1,248,451 2,149,449

Acceptances executed and outstanding...................................................................... 403,221 5,825,332 26,612,866 32,438,198 32,841,419

Other liabilities............................................................................................................. 9,371,013 597,028 28,684,160 29,281,188 38,652,201

Total liabilities (excluding subordinated notes and debentures) ............................ 656,677,262 290,830,688 641,076,458 931,907,146 1,588,584,408

Subordinated notes and debentures .......................................................................... 2,617,712 296,958 3,338,100 3,635,058 6,252,770

Equity capital — total ................................................................................................. 53.445.135 0 43,795,690 43,795,690 97,240,825

MEMORANDA

Standby letters of credit outstanding.......................................................................... 3,228,477 6,686,660 24,816,081 31,502,741 34,731,218

Time certificates of $100,000 or more:

Time certificates of deposits ..................................................................................

Other time deposits .................................................................................................

79,583,973

7,889,601

N/A

N/A

107,330,684

18,046,394

N/A

N/A

N/A

N/A

Number of b a n ks.........................................................................................................

Number of reporting branches....................................................................................

14,200

19

164 14,364

19

'Totals for items that are not explicitly reported are derived mathematically. 

NOTE: N /A — Not Available.

ASSETS AND LIABILITIES OF BANKS

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 111. A S S E T S AN D LIA B ILITIE S OF INSU RED M UTUAL SAVING S BA NKS IN TH E UNITED STATES (STATES AN D O TH E R AR EAS),

D E CEM BER CALL DATES, 1974-1979 

(Amounts in thousands of dollars)

Asset, liability, or surplus account Dec. 31, 1974 Dec. 31, 1975 Dec. 31, 1976 Dec. 31, 1977 Dec. 31, 1978 Dec. 31, 1979

Total Assets................................................................................................................................ 95,589,401 107,280,765 120,839,827 132,201,371 142,352,807 147,112,481

Cash and due from depository institutions........................................................................... 2,053,353 2,195,390 2,188,926 2,214,478 3,570,970 2,929,219

Currency and co in ................................................................................................................

Demand balances with commercial banks in the United S ta te s ........................................

268,102 308,887 338,001 386,038 411,640 425,007

683,943 706,116 925,344 761,624 861,088 808,144

Other balances with depository institutions ....................................................................... 1,022,757 1,091,274 807,240 922,001 2,136,238 1,558,068

Cash items in process of collection ................................................................................... 78,551 89,113 118,341 144,815 162,004 138,000

Securities— total .................................................................................................................... 22,684,614 30,421,034 37,984,627 42,219,724 43,546,458 43,494,247

U.S. Treasury, agency, and corporation obligations ............................................................. 5,967,835 9,468,682 13,194,506 15,496,605 16,215,435 17,394,228

Maturing in 1 year and less ............................................................................................... 712,274 1,312,116 1,981,205 1,857,506 1,371,969 1,423,345

Maturing in over 1 thru 5years ......................................................................................... Maturing in over 5 thru 10 years ....................................... ............................................

1,604,165 2,761,242 3,237,461 3,427,509 3,270,419 2,904,333

694,251 1,167,218 1,383,006 1,751,417 1,517,745 1,360,848

Maturing over 10 years........................................................................................................ 2,957,145 4,228,106 6,592,834 8,460,173 10,055,302 11,705,702

Corporate bo nd s...................................................................................................................... 10,560,303 13,503,561 15,781,623 16,449,941 16,376,504 16,129,261

Obligations of States and political subdivisions in the U.S.....................................................

Other bonds, notes, and debentures .....................................................................................

882,620 1,488,631 2,301,574 2,770,854 3,297,215 2,840,790

1,856,557 2,329,685 3,019,191 3,503,057 3,587,862 3,106,129

Corporate stock— to ta l............................................................................................................ 3,417,299 3,630,475 3,687,733 3,999,267 4,069,442 4,023,839

B an k.................................................................................................................................... 348,290 374,851 387,161 409,239 387,736 346,793

Other.................................................................................................................................... 3,069,009 3,255,624 3,300,572 3,590,028 3,681,706 3,677,046

Federal funds sold and securities purchased under agreements to re sell............................ 964,856 897,063 1,322,316 1,880,491 1,889,991 2,688,582

Loans, net .................................................................................................................................. 67,449,217 70,812,040 75,990,422 82,307,795 89,478,403 93,869,281

Real estate loans, g ro s s .......................................................................................................... 65,339,748 68,371,859 72,820,626 78,739,467 85,110,268 89,276,017

Less: Unearned income ..................................................................................................... N/A N/A N/A N/A N/A 529,384

Less: Allowance for possible loan losses........................................................................... N/A N/A N/A N/A N/A 173,180

Real estate loans, n e t.......................................................................................................... 65,339,748 68,371,859 72,820,626 78,739,467 85,110,268 88,573,453

Construction and land development............................................................................... 821,250 824,494 854,499 1,117,143 1,506,918 1,672,333

Secured by farmland ...................................................................................................... 49,185 48,239 46,364 39,101 38,425 37,105

Secured by residential properties:

Secured by 1 - to 4-fam ily residential properties:

Insured by FHA or guaranteed by V A ..................................................................... 23,553,308 22,930,121 22,368,394 21,615,197 21.163,512 20,496,935

Conventional............................................................................................................ 18,275,751 20,123,915 23,393,029 28,437,445 33,524,543 37,742,289

Secured multifamily (5 or more) residential properties:

Insured by FHA . . . ........................................................................... 1,688,126 1,949,245 2,428,166 2,695,114 2,940,909 2,866,818

Conventional............................................................................................................ 10,076,268 10,693,613 10,874,242 11,360,282 11,778,017 11,999,096

Secured by nonfarm nonresidential properties ............................................................. 10,875,860 11,802,232 12,855,932 13,475,185 14,157,944 14,461,441

Other loans, gross.................................................................................................................. 2,109,469 2,440,181 3,169,796 3,568,328 4,368,135 5,635,742

Less: Unearned income ...................................................................................................... N/A N/A N/A N/A N/A 328,944

Less: Allowance for possible loan losses........................................................................... N/A N/A N/A N/A N/A 10,970

Other loans, n e t .................................................................................................................. 2,109,469 2,440,181 3,169,796 3,568,328 4,368,135 5,295,828

Loans to financial institutions: To real estate investment trusts and mortgage companies .......................................... N/A N/A N/A N/A N/A 1,689

To domestic commercial and foreign banks................................................................... 18,339 26,747 26,955 10,254 97,670 228,118

To other financial institutions......................................................................................... 26,324 32,835 57,234 56,679 117,296 47,843

Loans for purchasing or carrying securities (secured and unsecured): 743 0 30,000 2,000 To brokers and dealers in securities............................................................................... 0 0

Other loans for purchasing or carrying securities ........................................................

Loans to finance agricultural production (except those secured primarily by real estate) . 

Commercial and industrial loans (except those secured primarily by real estate) ............

930 1,416 175,360

1,990 1,460 297,097

1,494

918 599,849

1,285 1,407 506,372

1,688 1,167 375,396

1,791 1,120 475,846

Loans to individuals for household, family, and other personal expenditures

(include purchased paper): installment loans to repair and modernize residential property.................................... 0 0 0 0 0 776,860

Other installment loans for household, family, and other personal expenditures ........ 1,812,329 1,984,829 2,412,478 2,892,234 3,685,543 2,577,044

Single-payment loans for household, family, and other personal expenditures............

All other loans......................................................................................................................

N/A

74,028

N/A

95,223

N/A

70,868

N/A

70,097

N/A

87,375

1,318,908

206,523

Total net loans and securities....................................................................................... 90,133,831 101,233,074 113,975,049 124,527,519 133,024,861 137,363,528

1 78 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Bank premises, furniture and fixtures, capital leases, and other assets representing

bank premises ...................................................................................................................

Real estate owned other than bank prem ises........................................................................

Investment in unconsolidated subsidiaries and associated companies ................................

Other assets .......................................................................................................................

857,879

233,775

82,292

1,263,415

963,664

418,233

94,253

1,479,088

1,063,867

490,059

112,754

1,686,856

1,161,551

444,012

115,357

1,857,963

1,266,509

382,005

119,910

2,098,561

1,389,116

295,155

150,958

2,295,923

Total liabilities and surplus accounts...................................................................................... 95,589,401 121,070,592 120,839,827 132,201,371 142,352,807 147,112,481

Deposits— total .....................................................................................................................

Savings and time deposits— to tal...................................................................................... Savings deposits-total................................................................................................... Subject to transfer by order (interest-bearing).......................................................... Other........................................................................................................................... Time deposits-total....................................................................................................... Demand deposits-total................................................................................................. Subject to transfer by order (noninterest-bearing).................................................... Other.......................................................................................................................

86,814,415

85,904,825 56.497.626 N/A 56.497.626 29,407,199

909.590 N/A

909.590

110,583,326

109,553,709 70.307.268 N/A 70.307.268 39,246,441

1.029.617 N/A 1.029.617

110,998,759

109,895,767 67.295.029 N/A 67.295.029 42,600,738 1.102.992 N/A 1.102.992

121,265,988

119,734,061 70.382.619 N/A 70.382.619 49,351,442 1.531.927 N/A 1.531.927

129,449,932

127,600,309 64.291.598 N/A 64.291.598 63,308,711 1.849.623 N/A 1.849.623

132,337,884

129,674,702 54,482,515 4,825,465 49,657,050 75,192,187 2,663,182 1,541,281 1,121,901

Miscellaneous liabilities:

Federal funds purchased and securities sold under agreements to repurchase ..............

Mortgage indebtedness and liability for capital leases......................................................

Other liabilities for borrowed money ................................................................................

Other liabilities ...................................................................................................................

217,561

N/A

667,256

1,067,626

108,715 N/A

481,778

1,475,903

69,118 N/A

356,329

1,439,661

169,166 N/A

483,710

1,472,794

578,706 N/A

1,025,607

1,646,051

1,643,214

65,840

1,959,463

876,263

Total liabilities............................................................................................................... 88,766,858 112,649,722 112,863,867 123,391,658 132,700,296 136,882,664

Subordinated notes and debentures.................................................................................... 169,460 196,374 213,264 353,386 353,956 382,373

Suralus accounts— total .......................................................................................................

S urplus...............................................................................................................................

Undivided profits .........................................................................................................

Other surplus reserves.........................................................................

6.653.083

6.653.083 N/A N/A

8.224.496

8.224.496 N/A N/A

7.762.696

7.762.696 N/A N/A

8.456.327

8.456.327 N/A N/A

9.298.555

9.298.555 N/A N/A

9,847,444

4,525,587 4,167,296 1,154,561

PERCENTAGES

Of total assets:

Cash and due from depository institutions..........................................................

U.S. Treasury .........................................................................................................................

All other securities ...............................................................................................

Net loans (including federal funds sold and securities purchased under agreements to resell)

All other a sse ts.....................................................................................................

Total surplus accounts.................................................................

2.15

6.24

17.49

71.57

2.55

6.96

1.94

8.92

19.35

67.12

2.68

6.79

1.81

10.92

20.51

63.98

2.78

6.42

1.68

11.72

20.21

63.68

2.71

6.40

2.51

11.39

19.20

64.18

2.72

6.53

1.99

11.82

17.74

65.64

2.81

6.69

Of total assets other than cash and U.S. Government obligations:

Total surplus accounts............................................................................. 7.60 7.62 7.36 7.39 7.59 7.77

Number of banks .................. 320 476 329 323 325 324

ASSETS AND LIABILITIES OF BANKS 179

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 112. P E R C E N T A G E S O F A S S E T S , LIABILITIES, A N D EQ U ITY C A P IT A L O F IN S U R E D C O M M E R C IA L B A N K S 

O P E R A T IN G T H R O U G H O U T 1979 IN TH E UNITED S T A T E S A N D O T H E R A R E A S , D E C E M B E R 31, 1979 

BANKS GROUPED BY AMOUNT OF ASSETS

Banks with assets of—

Asset, liability, or equity capital item

All

banks

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$10.00 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Total assets .................................................................................................. 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Cash and due from depository in s titu tio n s ..............................................................

U.S. Treasury Securities1 ...........................................................................................

Obligations of other U.S. Government agencies

and corporations............................................ .........................................................

Obligations of states and political subdivisions .....................................................

All other securities........................................................................................................

Federal funds sold and securities purchased 

under agreements to re s e ll.....................................................................................

13.7

6.3

3.5

9.4 

1.1

4.3

10.7

14.4

9.5

3.3

.5

8.1

9.6

12.2

8.5 

6.1

.5

6.5

9.3

9.4

6.7

10.2

.5

5.4

9.2

8.6

5.4

12.4

.5

4.7

9.6 

8.0

4.7 

13.2

.6

4.4

10.8

7.8

4.3

13.2

.5

4.7

13.0

7.8

4.5 

11.4

1.0

5.6

13.2

7.3

3.4 

11.0

1.0

5.6

14.0

5.7

2.8

9.7 

1.1

4.7

18.2

3.7

1.9

5.3

1.8

3.0

Loans, net ......................................................................................................................

Unearned income on lo a n s .........................................................................................

Allowance for possible loan lo sse s............................................................................

Loans, gross ................................................................................................................. Real estate loans..................................................................................... Loans to financial institutions................................................................... Loans for purchasing or carrying securities .............................................. Loans to finance agricultural production and other loans to farmers ................................................................................. Commercial and industrial loans............................................................... Loans to individuals for household, family and other personal expenditures.......................................................................... Single-pavment loans for personal expenditures ....................................... All other loans.........................................................................................

54.6 

1.5

.6

56.7 17.43.01.0

2.2 18.3

11.12.31.4

50.9

1.5

.4

52.8 13.7.1.1

16.17.4

11.13.4.9

53.8

1.5 

.5

55.8 16.4.1.1

15.0 8.6

11.4 3.3.9

55.5 

1.9

.5

57.9 20.1.1.1

10.2 10.3

12.5 3.61.0

55.7 

2.0

.5

58.2 22.3.2.1

6.0 11.7

13.2 3.8.9

55.8 

2.2

.5

58.5 22.5.3.2

3.1 13.9

14.0 3.6.9

54.8

2.0

.6

57.4

22.2

.5.3

1.4 15.6

13.7 2.9.8

52.7

1.9

.6

55.2 19.31.2.7

1.1 15.9

13.5 2.41.1

53.9

1.8

.6

56.3 18.71.5.9

.8 17.1

13.5 2.61.2

54.1

1.2

.6

55.9 15.9 3.4.9

.7 19.4

11.7 2.21.7

54.4

.8

.8

56.0 12.8 6.51.9

.8 24.3

6.91.01.8

All other assets ............................................................................................................. 7.1 2.6 2.8 3.0 3.5 3.7 3.9 4.0 4.6 7.9 11.7

Total liabilities and equity capital................................................................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Deposits— to ta l............................................................................................................. Demand deposits................................................................................. Time and savings.................................................................................

Individuals, partnerships, and corporations— dem and......................................

Individuals, partnerships, and corporations— time and savings......................

U.S. Government ....................................................................................................

States and political subdivisions............................................................................

Certified and officers’ checks ................................................................................

All other deposits ....................................................................................................

77.8 30.8 47.0

23.8 

41.5

.2

5.9

1.1

5.3

87.6 35.8 51.6

32.1

44.8 

.2

9.6

.7

.2

89.3 30.1 59.2

26.6 

52.5

.3

8.9

.8

.2

89.6 28.9 60.7

25.5 

54.4

.3

8.3

.9

.2

89.2 28.4 60.8

25.1

54.6

.3

8.1

.9

.2

88.4 28.8 59.6

25.4 

53.1

.3

8.1

1.0

.5

86.3 29.1 57.2

24.7 

50.5

.2

8.1

1.0

1.8

83.7 31.4 52.3

24.9

44.9 

.3

8.4

1.2

4.0

81.6 32.4 49.2

26.1

42.6

.3

7.3

1.1

4.2

74.7 30.9 43.8

24.6 

38.2

.3

6.1

.9

4.6

66.3 32.5 33.8

21.0 

29.7

.2

2.5

1.5

11.4

Federal funds purchased and securities sold under agreements

to repurchase ..........................................................................................................

Interest-bearing demand notes issued to the U.S. Treasury

and other liaDiliiies for borrowed m oney..............................................................

All other liabilities ......................................................................................................

Subordinated notes and debentures.........................................................................

Equity capital.................................................................................................................

8.0

2.0

4.9 

.4

6.9

.3

.0

.6

.0

11.5

.4

.1

.6

.1

9.5

.5

.2

1.0

.1

8.6

.8

.3

1.4

.2

8.1

1.6

.5

1.5

.3

7.7

3.6

.9

1.6 

.4

7.2

6.3

1.0

1.7 

.5

6.8

7.8

1.6

1.9 

.6

6.5

11.5

2.3

4.6

.7

6.2

13.2

3.7

9.9

.4

6.5

- Number of banks.......................................................................................................... 14,159 728 2,066 4,694 3,365 1,764 1,051 170 149 144 28

^Securities held in trading accounts are included in “ Other assets. 

Includes minority interest in consolidated subsidiaries.

1 80 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 113. PERCENTAGES OF ASSETS AND LIABILITIES OF INSURED MUTUAL BANKS OPERATING THROUGHOUT 1979 IN 

THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1979 

BANKS GROUPED BY AMOUNT OF ASSETS

Banks with total assets of—

Asset, liability, or surplus account

All

banks

Less 

than 

$10.0 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1 billion 

or

more

Total A s s e ts ........................................................................................................................................... 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Cash and due from depository in s titu tio n s ................................................................................. 1.99 3.80 3.40 3.34 2.39 2.44 2.37 1.76 1.86

Currency and c o in .........................................................................................................................

Demana balances with commercial banks in the United S ta te s...........................................

0.29 1.03 0.54 0.55 0.46 0.38 0.34 0.33 0.23

0.55 1.90 1.09 0.87 0.86 0.86 0.61 0.47 0.47

Other balances with depository institutions ............................................................................ 1.06 0.00 1.64 1.78 0.90 1.08 1.29 0.83 1.09

Cash items in process of collection .......................................................................................... 0.09 0.87 0.13 0.14 0.17 0.12 0.13 0.13 0.07

Securities— total .............................................................................................................................. 29.57 14.82 22.82 21.19 18.90 22.10 22.51 29.08 33.30

U.S. Treasury, agency, and corporation obligations ............................................................. 11.83 2.46 13.76 9.35 8.78 9.97 11.74 12.95 12.10

Corporate b o n d s........................................................................................................................... 10.96 5.99 3.30 6.44 4.87 6.25 6.47 9.88 13.53

Obligations of States and political subdivisions in the U.S..................................................... 1.93 0.00 1.12 0.69 0.64 1.12 0.75 1.57 2.52

Other bonds, notes and debentures.......................................................................................... 2.11 0.82 1,94 1.05 0.92 1.46 1.06 1.80 2.62

Corporate stock— to ta l................................................................................................................

B a n k ...........................................................................................................................................

2.74 5.55 2.70 3.66 3.69 3.30 2.49 2.88 2.53

0.24 0.20 0.75 0.53 0.70 0.49 0.34 0.28 0.11

O ther........................................................................................................................................... 2.50 5.35 1.95 3.13 2.99 2.81 2.15 2.60 2.42

Federal funds sold and securities purchased under agreements to re s e ll.......................... 1.83 3.38 2.87 3.29 2.50 1.91 2.51 1.92 1.60

Loans, net ......................................................................................................................................... 63.81 75.02 69.35 69.55 73.68 70.85 69.84 64.21 60.44

Real estate loans, g ro s s .............................................................................................................. 60.69 68.29 62.76 63.46 67.63 66.54 65.60 61.05 58.01

Less: Unearned income ......................................................................................................... 0.36 0.00 0.08 0.03 0.05 0.11 0.21 0.38 0.45

Less: Allowance for possible loan lo s s e s ............................................................................ 0.12 0.00 0.26 0.15 0.12 0.13 0.07 0.14 0.12

Real estate loans, n e t.............................................................................................................. 60.21 68.29 62.42 63.28 67.46 66.30 65.32 60.53 57.44

Construction and land developm ent................................................................................. 1.14 0.60 0.74 0.82 1.43 1.66 1.84 1.44 0.80

Secured by farm land............................................................................................................ 0.03 0.27 0.59 0.17 0.25 0.05 0.02 0.01 0.01

Secured by residential properties:

Secured by 1- to 4-family residential properties:

Insurecf by FHA or guaranteed byVA ...................................................................... 13.93 0.00 4.47 4.24 5.58 7.13 11.92 14.70 16.16

Conventional................................................................................................................ 25.65 60.31 50.68 51.07 52.32 46.01 38.11 23.69 17.73

Secured multifamily (5 or more) residential properties:

Insured by F H A............................................................................................................ 1.95 0.00 0.00 0.00 0.05 0.10 0.51 2.01 2.71

Conventional................................................................................................................ 8.16 0.00 1.15 2.12 1.73 4.10 5.92 9.65 9.44

Secured by nonfarm nonresidential properties............................................................... 9.83 7.11 5.13 5.04 6.28 7.39 7.28 9.55 11.16

Other loans, gross ....................................................................................................................... 3.83 6.73 7.15 6.74 6.65 4.91 4.92 4.02 3.13

Less: Unearned income ......................................................................................................... 0.22 0.00 0.22 0.44 0.42 0.35 0.41 0.33 0.12

Less: Allowance for possible loan lo s s e s ............................................................................ 0.01 0.00 0.00 0.03 0.02 0.01 0.01 0.01 0.01

Other loans, n e t ....................................................................................................................... 3.60 6.73 6.93 6.27 6.22 4.55 4.52 3.68 3.00

COASSETS AND LIABILITIES OF BANKS

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 113. PERCENTAGES OF ASSETS AND LIABILITIES OF INSURED MUTUAL BANKS OPERATING THROUGHOUT 1979 IN 

THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1979-C O N TINUE D 

BANKS GROUPED BY AMOUNT OF ASSETS

Banks with total assets of—

Asset, liability, or surplus account

All

banks

Less 

than 

$10.0 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1 billion 

or

more

Loans to financial institutions:

To real estate investment trusts and mortgage companies ..................................................

To domestic commercial and foreign ba n ks.............................................................................

To other financial in stitu tio n s.....................................................................................................

Loans for purchasing or carrying securities (secured and unsecured):

To brokers and dealers in securities..........................................................................................

Other loans for purchasing or carrying securities ..................................................................

Loans to finance agricultural production (except those secured primarily by real estate) . . .

Commercial and industrial loans (except Those secured primarily by real estate) .................

Loans to individuals for household, family, and other personal expenditures 

(include purchased paper):

Installment loans to repair and modernize residential p ro p e rty ............................................

Other installment loans for household, fam ily, and other personal expenditures .............

Single-payment loans for household, family, and other personal expenditures.................

All other loans....................................................................................................................................

0.00

0.16

0.03

0.00

0.00

0.00

0.32

0.53

1.75

0.90

0.14

0.00

0.00

0.00

0.00

0.00

0.00

0.07

2.39

2.74

0.09

1.44

0.00

0.29

0.00

0.00

0.00

0.01

0.47

0.43

3.54

2.09

0.32

0.00

0.05

0.00

0.00

0.00

0.00

0.25

0.81

3.53

1.89

0.21

0.00

0.01

0.00

0.00

0.00

0.01

0.30

0.97

3.52

1.49

0.34

0.00

0.10

0.05

0.00

0.01

0.00

0.26

0.82

1.98

1.45

0.24

0.00

0.07

0.00

0.00

0.00

0.00

0.31

0.92

2.21

1.28

0.13

0.00

0.06

0.01

0.00

0.00

0.00

0.19

0.73

1.88

1.00

0.15

0.00

0.22

0.04

0.00

0.00

0.00

0.38

0.30

1.46

0.63

0.10

Total net loans and securities ........................................................................................... 93.38 89.84 82.17 90.74 92.58 92.95 92.35 93.29 93.74

Bank premises, furniture and fixtures, capital leases, and other assets representing

bank premises .........................................................................................................................

Real estate owned other than bank prem ises...............................................................................

Investment in unconsolidated subsidiaries and associated companies ...................................

Other assets .......................................................................................................................................

0.94

0.20

0.10

1.56

2.48

0.10

0.00

0.40

0.92

0.06

0.00

0.58

1.69

0.11

0.00

0.83

1.30

0.19

0.00

1.04

1.17

0.19

0.05

1.29

1.11

0.16

0.07

1.43

1.02

0.17

0.16

1.68

0.81

0.22

0.11

1.66

Total lia bilitie s and surplus accounts............................................................................................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Deposits— total ................................................................................................................................

Savings and time deposits— to ta l...............................................................................................

Savings d e p o sits-to ta l............................................................................................................

Subject to transfer by order (interest-bearing)................................................................

O ther.......................................................................................................................................

Time d e p o s its -to ta l.................................................................................................................

Demand d e p o sits-T o ta l..........................................................................................................

Subject to transfer by order (noninterest-bearing).........................................................

O ther.......................................................................................................................................

89.96

88.15

37.03

3.28

33.75

51.12

1.81

1.05

0.76

90.42

90.10

61.21

2.39

58.82

28.89

0.32

0.32

0.00

90.75

90.17

41.52

8.47

33.05

48.65

0.58

0.30

0.28

91.20

89.84

44.40

4.50

39.90

45.44

1.36

1.09

0.27

90.76

89.63

41.41

7.32

34.09

48.22

1.13

1.00

0.13

90.32

89.13

39.15

4.84

34.31

49.98

1.19

0.82

0.37

90.32

88.87

37.60

4.41

33.19

51.27

1.45

0.95

0.50

90.36

88.70

40.96

3.65

37.30

47.74

1.66

0.84

0.82

89.61

87.51

34.87

2.34

32.53

52.64

2.10

1.18

0.92

Miscellaneous liabilities:

Federal funds purchased and securities sold under agreements to repurchase.................

Mortgage indebtedness and liability for capital le a se s...........................................................

Other liabilities for borrowed money ....................................................................................

Other liabilities ..............................................................................................................................

1.12

0.04

1.33

0.60

0.00

0.00

0.00

0.02

0.63

0.00

0.00

0.26

0.03

0.00

0.28

0.52

0.00

0.03

0.84

0.65

0.41

0.04

1.28

0.60

0.37

0.04

1.62

0.62

0.74

0.05

1.02

0.60

1.60

0.05

1.44

0.59

Total lia b ilitie s ..................................................................................................................... 93.05 90.44 91.64 92.03 92.28 92.65 92.97 92.77 93.29

Subordinated notes and debentures............................................................................................. 0.26 0.00 0.60 0.10 0.08 0.05 0.16 0.18 0.36

Sumlus accounts— total .................................................................................................................

S u rp lu s ...........................................................................................................................................

Undivided profits .........................................................................................................................

Other surplus reserves.................................................................................................................

6.69

3.08

2.83

0.78

9.56

2.87

6.69

0.00

7.76

4.56

3.07

0.13

7.87

3.64

3.39

0.84

7.64

3.02

3.56

1.06

7.30

2.97

3.38

0.95

6.87

2.75

3.39

0.73

7.05

3.34

2.89

0.82

6.35

3.07

2.55

0.73

Number of banks .................................................................................................................................. 324 2 10 23 81 98 35 35 40

182 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 114. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1979

BANKS GROUPED ACCORDING TO AMOUNT OF ASSETS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS

Banks with assets o f -

Ratios 

(In percent)

All

banks

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 m illion

$50.0 m illion 

to

$99.9 m illion

$100.0 million 

to

$299.9 million

$300.0 m illion 

to

$499.9 million

$500.0 m illion 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Ratios of cash and due from depository 

in stitu tio n s to total assets o f—

Less than 3 . 0 ................................................................................ 144 22 32 50 22 8 7 1 1 1

3.0 to 5 .9 9 ..................................................................................... 2,672 124 467 996 650 292 129 7 4 3 _

6.0 to 8 .9 9 ..................................................................................... 4,827 214 693 1,672 1,263 602 294 41 27 21 _

9.0 to 1 1 .9 9 ................................................................................... 3,345 183 432 1,000 808 477 309 53 48 31 4

12.0 to 1 4 .9 9 ................................................................................ 1,716 119 227 523 341 229 175 26 26 39 11

15.0 to 1 7 .9 9 ................................................................................ 827 54 121 257 171 92 70 18 21 18 5

18.0 to 2 0 .9 9 ................................................................................ 372 36 59 117 67 32 29 7 8 15 2

21.0 to 23.99 ................................................................................ 182 23 41 49 23 13 14 3 6 8 2

24.0 or m o r e ................................................................................ 279 55 56 64 26 19 24 15 8 8 4

R atios of U.S. Treasury securities to total assets o f—

Less than 3 . 0 ................................................................................ 2,325 141 270 790 575 285 160 34 26 30 14

3.0 to 5 .9 9 ..................................................................................... 3,189 96 353 1,011 786 473 304 55 45 57 9

6.0 to 8 .9 9 ..................................................................................... 2,930 117 345 922 748 432 260 31 44 28 3

9.0 to 1 1 .9 9 ................................................................................... 1,982 104 288 664 484 247 141 20 13 20 1

12.0 to 1 4 .9 9 ................................................................................ 1,365 81 254 481 307 136 86 8 7 5 _

15.0 to 1 7 .9 9 ................................................................................ 905 65 193 302 196 84 41 12 9 2 1

18.0 to 2 0 .9 9 ................................................................................ 573 49 127 210 107 45 27 5 3 — —

21.0 to 23.99 ................................................................................ 346 36 81 126 66 24 11 1 _ 1 _

24.0 to 26.99 ................................................................................ 208 31 50 68 30 15 10 3 _ 1 _

27.0 to 2 9 .9 9 ................................................................................ 128 17 45 37 20 5 4 _ _ _

30.0 to 3 2 .9 9 ................................................................................ 119 14 32 39 23 7 4 _ _ _ _

33.0 to 3 5 .9 9 ................................................................................ 89 18 22 28 11 7 2 _ 1 _ _

36.0 or m o r e ................................................................................ 205 61 68 50 18 4 1 2 1 - -

ASSETS AND LIABILITIES OF BANKS 1 83

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 114 DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

D E C E M B E R 31, 1 9 7 9 - C O N T I N U E D 

BANKS GROUPED ACCORDING TO AMOUNT OF ASSETS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS

Banks with assets of—

Ratios 

(in percent)

All

banks

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 m illion 

to

$49.9 million

$50.0 million 

to

$99.9 m illion

$100.0 m illion 

to

$299.9 m illion

$300.0 m illion 

to

$499.9 million

$500.0 million 

to

$999.9 m illion

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Ratios of o b ligations of states and p o litic a l subdivisio n s to la l assets o f—

Z e r o ................................................................................................. 1,145 318 388 353 61 20 3 1 1

Less than 1 . 0 ............ 558 139 190 136 60 17 9 2 4 1 —

1.0 to 2 .4 9 ................ 600 116 211 162 68 19 15 5 1 2 1

2.5 to 4 .9 9 ................ 1,138 91 324 407 166 69 38 9 10 15 9

5.0 to 7 .4 9 ................ 1,474 61 289 605 289 101 60 17 15 27 10

7.5 to 9 .9 9 ................ 1,975 33 268 765 478 221 118 30 26 32 4

10.0 to 12.49 2,284 26 197 782 619 327 213 44 40 34 2

12.5 to 1 4 .9 9 ............ 2,028 12 113 609 602 378 242 21 29 20 2

15.0 to 17.49 1,424 14 63 417 447 268 170 24 11 10 —

17.5 to 19.99 838 9 41 225 280 167 94 13 7 2 —

20.0 to 2 4 .9 9 ............ 690 8 33 205 228 141 66 4 4 1 —

25.0 or m o r e ............ 210 3 11 62 73 36 23 1 1 — —

Ratios of net loans to total assets o f—

Less than 20 ................................................................................ 143 59 25 32 16 4 4 2 1

20.0 to 24.99 111 21 38 24 17 7 4 — — — —

25.0 to 2 9 .9 9 ............ 212 44 50 71 28 12 5 2 _ — —

3 0.0 to 3 4 .9 9 ............ 346 52 82 95 65 26 21 1 2 2 —

35.0 to 39.99 596 57 114 200 115 51 36 9 6 6 2

40.0 to 4 4 .9 9 ............ 1,065 88 166 347 242 103 69 23 14 12 1

45.0 to 4 9 .9 9 ............ 1,632 91 248 545 366 194 118 23 17 22 8

50.0 to 5 4 .9 9 ............ 2,325 103 323 711 561 329 196 31 31 36 4

55.0 to 59.99 2,989 111 380 919 751 439 266 41 42 36 4

60.0 to 6 4 .9 9 ............ 2,603 89 329 917 647 351 204 23 22 16 5

65.0 to 6 9 .9 9 ............ 1,611 61 238 578 408 188 100 14 11 10 3

70.0 to 7 4 .9 9 ............ 590 40 101 231 135 53 23 2 2 2 1

75.0 or m o r e ............ 141 14 34 58 20 7 5 — 1 2 —

Ratios of total dem and deposits to total deposits o f—

Less than 20 ................................................................................ 995 27 121 368 277 121 62 8 8 3

20.0 to 24.99 ............ 2,183 67 300 796 563 291 141 13 8 4 —

25.0 to 2 9 .9 9 ............ 3,096 117 483 1,076 789 363 213 32 10 13 —

3 0.0 to 3 4 .9 9 ............ 2,740 132 439 860 667 351 216 23 22 25 5

35.0 to 3 9 .9 9 ............ 2,062 121 305 623 447 302 177 29 33 22 3

40.0 to 4 4 .9 0 ............ 1,399 98 191 456 295 161 111 24 29 27 7

45.0 to 49.99 852 71 112 270 191 85 71 18 14 16 4

50.0 to 54.99 ............ 409 46 68 107 70 46 33 12 12 13 2

55.0 to 59.99 241 34 36 72 36 23 11 6 9 12 2

60.0 to 64.99 139 23 27 42 22 7 5 4 2 6 1

65.0 or m o r e ............ 248 94 46 58 14 14 11 2 2 3 4

1 84 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
R atios of total equity capital to total assets o f—

Less than 5 ................................................................................... 243 5 13 32 50 42 48 18 14 17 4

5.0 to 5 .4 9 ..................................................................................... 341 4 12 65 77 49 65 13 21 27 8

5.50 to 5 .9 9 ................................................................................... 628 8 31 115 154 118 107 24 31 35 5

6.00 to 6 .4 9 ................................................................................... 945 12 64 256 242 173 135 22 16 22 3

6.50 to 6 .9 9 ................................................................................... 1,407 21 122 409 376 247 156 33 25 15 3

7.00 to 7 .4 9 ................................................................................... 1,702 32 196 541 482 266 145 18 10 11 1

7.50 to 7 .9 9 ................................................................................... 1,741 51 225 607 468 253 102 13 15 4 3

8.00 to 8 .4 9 ................................................................................... 1,563 39 245 561 405 185 104 13 6 5

8.50 to 8 .9 9 ................................................................................... 1,267 63 201 475 333 126 62 5 1 1 _

9.00 to 9 .4 9 ......................................................................... 953 60 148 404 211 84 39 4 2 1 _

9.50 to 9 .9 9 ................................................................................... 746 51 149 304 141 71 25 1 2 2 _

10.00 to 1 0 .4 9 .............................................................................. 602 44 131 230 127 44 20 3 3 _

10.50 to 1 0 .9 9 .............................................................................. 416 32 96 156 85 31 11 ~4 1

_

11.00 to 1 1 .4 9 .............................................................................. 342 42 73 132 56 21 14 2 1 1

11.50 to 1 1 .9 9 .................................................................... 235 34 51 88 45 12 4 1 _

12.00 or m o r e .................................................................... 1,233 332 371 353 119 42 14 1 1 - -

Ratios of total equity capital to total assets other

than cash and governm ent securities o f—

Less than 7 . 0 ................................................................................ 548 9 18 87 127 89 113 29 29 37 10

7.0 to 8 .4 9 ............................................................. 1,943 18 93 442 522 398 298 44 56 63 9

8.5 to 9 .9 9 .................................................................... 3,219 36 253 1,010 960 554 280 53 39 29 5

10.0 to 1 1 .4 9 ................................................................ 2,873 76 375 1,069 773 352 184 22 12 8 2

11.5 to 1 2 .9 9 ................................................................................ 1,939 79 327 785 445 187 92 11 8 4 1

13.0 to 1 4 .4 9 ................................................................................ 1,249 81 288 509 230 89 41 6 1 3 1

14.5 to 1 5 .9 9 ................................................................................ 719 59 175 281 140 35 23 3 3

16.0 to 1 7 .4 9 ................................................................................ 492 65 144 180 71 22 9 1

17.5 to 1 8 .9 9 ................................................................................ 316 40 116 107 35 12 5 1

19.0 to 2 0 .4 9 ................................................................................ 212 42 62 79 19 9 1

20.5 to 2 1 .9 9 ................................................................................ 144 32 53 38 12 6 3 _ _ _

22.0 or m o r e ............................................................................ 710 293 224 141 37 11 2 2 - — -

Number of b a n k s ........................................................... 14,364 830 2,128 4,728 3,371 1,764 1,051 171 149 144 28

ASSETS AND LIABILITIES OF BANKS 1 85

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Federal Reserve Bank of St. Louis
INCOME OF INSURED BANKS

Table 1 1 5. Income of insured commercial banks in the United States (States and other areas),

1974— 1979

Table 116. Ratios of income of insured commercial banks in the United States (States and other areas),

1974— 1979

Table 1 1 7. Income of insured commercial banks in the United States (States and other areas), 1 979

Banks grouped by class of bank

Table 1 1 8. Income of insured commercial banks operating throughout 1 979 in the United States (States

and other areas)

Banks grouped by amount of assets

Table 1 1 9. Ratios of income of insured commercial banks operating throughout 1979 in the United States

(States and other areas)

Banks grouped according to amount of assets

Table 1 20. Income of insured mutual savings banks in the United States (States and other areas), 1 974—

1979

Table 121. Ratios of income of insured mutual savings banks in the United States (States and other areas),

1974— 1979

The income data received and published by the Corporation relate to 

commercial and mutual savings banks insured by the Corporation.

Commercial banks

Banks having total assets of $25 million or more are required to report 

consolidated income accounts on an accrual basis. Where the results would 

not be significantly different, certain accounts may be reported on a cash 

basis. Smaller banks continue to have the option of submitting their reports 

on a cash or an accrual basis, except that unearned income on loans and 

income taxes must be reported on a current accrual basis.

Prior to 1 976, insured banks were required to submit a consolidated Report 

of Income, including all majority-owned domestic premises subsidiaries and

other nonbank subsidiaries that were significant according to certain tests. 

Beginning in 1976, the consolidated income report must also include all 

majority-owned Edge all majority-owned significant forand Agreement 

Corporations, and eign subsidiaries and associated companies.

Banks were required to report income and expenses more frequently 

beginning in 1 976. Banks having total assets of $300 million or more submit 

quarterly statements and other insured banks submit semiannual reports. In 

this report, income data are included for all insured banks operating at the end 

of the respective years, unless indicated otherwise. In addition, when 

appropriate, adjustments have been made for banks in operation during part 

of the year but not at the end of the year.

Several changes were made in 1 976 in the format of the income reports

1 86 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
submitted by banks, mainly involving additional separate items on the face of 

the report. Those changes are indicated in several historical data tables, with 

explanatory notes where necessary.

In 1976, the method used for determining "provision for possible loan 

losses” was changed significantly. Also, beginning in 1 976, "memoranda” 

data in table 115 and elsewhere on charge-offs and recoveries to loan loss 

reserves include also the gross charge-offs and recoveries on loans by banks 

not on a reserve basis of accounting (see p. 1 88).

In December 1978 an abbreviated Report of Income was instituted for 

banks with total consolidated assets of less than $ 100 million.

"Applicable income taxes” on income before securities gains or losses is 

an estimate of the tax liability that a bank would incur if its taxes were based 

solely on operating income and expenses; that is, if there were no security 

gains or losses, no extraordinary items, etc. The amount reported by each 

bank consists of Federal, State and local, and foreign income taxes, estimated 

using the tax rates applicable to the reporting bank. Income taxes currently 

payable, and deferred income taxes, are included.

The memoranda item "total provision for income taxes" includes applicable 

taxes on operating income, securities gains and losses and extraordinary 

items, and deferred income taxes resulting from "tim ing” differences. For 

banks generally the transfers to reserve for bad debts have exceeded the 

provision for loan losses and consequently have tended to reduce tax liability. 

(Since enactment of the Tax Reform Act of 1969, additions to loan loss 

reserves for Federal tax purposes have been subject to a schedule of 

limitations that will eventually put these reserves on a current experience 

basis.)

Mutual savings banks

For a discussion of the report of income and expenses for mutual savings 

banks prior to 1971, see the 1951 Annual Report, pp. 50-52.

Beginning December 31, 1971, income and expenses for mutual savings 

banks are reported on a consolidated basis in the same manner as required of 

commercial banks, including all domestic branches, domestic bank premises 

s u b s id ia rie s , and o th e r s ig n ific a n t nonbanking dom estic s u b ­

sidiaries.

Beginning in 1 972, banks with total resources of $25 million or more are 

required to prepare their reports on the basis of accrual accounting. All banks

are required to report income taxes on an accrual basis.

Under operating income, certain income from securities formerly in the 

"other" category are shown separately beginning in 1 971. Income from U.S. 

Treasury securities is combined with income from U.S. Government agency 

and corporation securities. Somewhat fewer items are detailed under operating expenses. Beginning in 1971, actual net loan losses (charge-offs less 

recoveries) are included as an expense item in the operating section of the 

report (see discussion below). In 1 970 and prior years (table 1 20), the 

amounts shown for this expense item were "recoveries credited to valuation 

adjustment provisions on real estate mortgage loans" less the "realized 

losses charged to valuation adjustment provisions on [these] loans," which 

were reported in those years in the memoranda section. Beginning in 1 979, 

the amount to be expensed as a provision is based on management discretion 

and is expected to be reflective of the adequacy of the existing valuation 

reserve and the current condition of the loan portfolio.

The nonoperating sections of the report were condensed in 1971, with 

realized gains and losses on securities, mortgage loans, and real estate 

reported "net" rather than in separate sections and captions as before. In 

1 979, these items were no longer required to be reported separately. They 

are to be included in with other operating income or other operating 

expenses. Detailed data formerly reported on reconcilement of valuation 

adjustment provisions were almost entirely eliminated, except for a reconciliation of surplus. For additional discussion of reporting changes in 1 979, (see 

p. 160).

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.

REPORTING OF LOSSES AND RESERVES

FOR LOSSES ON LOANS,

Commercial banks 1948 — 1979

Use of the reserve method of loan accounting was greatly encouraged 

when, in 1 947, the Internal Revenue Service set formal standards for loan

CDINCOME OF INSURED BANKS

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Federal Reserve Bank of St. Louis
loss transfers to be permitted for Federal tax purposes. In their reports 

submitted to the Federal bank supervisory agencies prior to 1 948, insured 

commercial banks included in nonoperating income the amounts of recoveries on loans (applicable to prior charge-offs for losses) which included, for 

banks using the reserve method, transfers from loan loss reserves. Direct 

charge-offs and losses on loans, and transfers to reserves were included 

together in nonoperating expenses. Banks using the reserve method were 

not required to report separately their actual losses, that is, charges against 

loan loss reserves. (In statements of condition prior to 1 948, insured banks 

reported loans on a net basis only, after allowance for loan loss reserves. 

Beginning with the June 30, 1948 report, banks were required to report 

gross loans, with total valuation reserves, those set up pursuant to Internal 

Revenue Service regulations, and other reserves shown separately. However, instalment loans ordinarily continued to be reported net if the instalment payments were applied directly to the reduction of the loan.)

Beginning with the year 1 948, the income reports were revised to show 

separately, in a memoranda section, the losses charged to reserves. These 

items continued to be combined in the nonoperating expense section until 

1961. Recoveries credited to reserves were also itemized in the memoranda 

section beginning in 1948, as were the amounts transferred to and from 

reserves during the year. Each of these debits and credits was segregated as 

to reserves set up pursuant to IRS regulations, and other reserves. Losses and 

recoveries, and transfers to and from reserves, but not the specific tax-related 

transfers, were separately reported in the Corporation's published statistics.

Several important revisions were made in the format of the income reports 

of commercial banks in 1969. A new entry entitled "provisions for loan 

losses” was included under operating expenses. This item included actual 

loan losses (charge-offs less recoveries) during the year or, at the option of the 

bank, an amount derived by applying the average loan loss percentage for the 

five most recent years to the average amount of loans during the current year. 

Banks had the option also of providing a larger amount in any year than the 

amount indicated by the formula. Beginning in 1976, required use of the 

formulas was discontinued. Banks are instructed to expense an amount

00

CD

which in the judgment of bank management will maintain an adequate 

reserve, and to provide a fully reviewable record for bank examination 

purposes of the basis for the determination of the loan-loss provision.

Also beginning in 1 976, banks not on a reserve basis report gross chargeoffs and recoveries; the difference— net losses— is reported as the “ provision 

for loan losses” in operating expenses. Banks continue to report all transfers 

to and from reserves in the memoranda section of the income statement, but 

this detailed information is not included in the tables to follow.

Mutual savings banks

While mutual savings banks reported loan losses and transfers to loss 

reserves prior to 1 951, the Corporation's published statistics did not show 

these data separately, as was the case also for recoveries and transfers from 

reserves. When the reporting form was revised extensively in 1 951, these 

various nonoperating expenses were itemized, and a memoranda section 

was added to show also the losses and recoveries in reserve accounts. 

"Realized” losses (and recoveries)for which no provision had been made, and 

transfers were included in the nonoperating expense (income) section, while 

direct write-downs and other loan losses for which provision had been made, 

were reported separately in a memoranda account.

Following 1951, the loan loss section of the reports of condition and 

income and expense remained unchanged until 1971. Beginning in 1971, 

the income report was revised in a manner similar to changes in 1969 

applicable to commercial banks, to show actual net loan losses as operating 

expenses. (Mutual savings banks did not have the option available to 

commercial banks of reporting losses based on recent years' average 

experience.) At the same time, all valuation reserves were merged into 

surplus accounts on statements of condition submitted to the Federal 

supervisory agencies. In 1979, loan loss reporting was again revised in a 

manner consistent with reporting by commercial banks. The provision 

expense is determined by bank management. The valuation reserves on real 

estate loans and other loans are shown as separate deductions to the asset 

categories on the Report of Condition.

FEDERAL DEPOSIT INSURANCE CORPORATION

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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), 1974-1979 

(Amounts in thousands of dollars)

Income item 1974 1975 19761 19771 19781 1979

Operating income— to ta l.........................................................................................................

Interest and fees on loans...................................................................................

Interest on balances with depository institutions2 ................................................

Income on federal funds sold and securities purchases under agreements

to resell in domestic offices ............................................................................

Interest on U.S. Treasury securities and on obligations of other U.S.

Government agencies and corporations3 .........................................................

Interest on obligations of States and political subdivisions of the U.S.3 ..................

Income from all other securities3 ........................................................................

Income from direct lease financing2 ....................................................................

Income from fiduciary activities ..........................................................................

Service charges on deposit accounts in domestic offices.......................................

Other service charges, commissions, and fees ....................................................

Other income3 ....................................................................................................

Operating expenses— total ....................................................................................................

Salaries and employee benefits............................................................................

Interest on time certificates of deposit of $100,000 or more issues by 

domestic offices4 ...........................................................................................

68,160,779

47,138,740

3,712,304

5,459,834

4,453,876

467,873

1,506,206

1,459,858

1,408,525

2,553,563

66,558,502

43,379,504

2,294,621

6,789,577

4,918,518

533,244

1,601,968

1,555,360

1,653,549

3,832,161

80,663,853

51,645,260

4,486,655

1,984,757

8,391,374

5,134,676

856,053

534,254

1,794,732

1,635,463

2,182,927

2,017,702

90,357,541

58,990,506

4,887,917

2,476,313

8,863,977

5,365,327

968,672

699,273

1,980,395

1,806,509

2,408,698

1,909,954

113,581,682

76,182,124

6,712,575

3,682,320

9,384,132

6,038,829

1,094,853

861,989

2,139,266

2,048,989

2,937,435

2,499,170

150,282,353

102,192,459

10,669,726

6,126,340

10,686,277

6,955,222

1,198,071

1,073,254

2,375,711

2,528,752

3,641,607

2,834,934

58,910,355

11,586,433

57,582,040

12,686,720

70,750,168

14,752,297

7,111,054

8,749,673

19,143,238

3,311,741

667,197

344,952

2,764,804

3,691,378

8,492,452

70,791,583

16,346,067

6,763,105

10,215,971

21,832,936

4,542,669

818,374

392,274

3,049,121

3,301,041

9,599,250

98,480,372

18,743,800

11,736,511

14,558,371

23,918,087

7,264,001

1,457,931

448,488

5,584,768

3,524,704

11,243,711

132,391,165

21,562,167

18,178,650

24,523,807

29,185,414

12,356,285

3,167,247 

501,470

6,281,496

3,785,642

12,848,987

Interest on deposits in foreign offices2 ..........................................

Interest on other deposits...................................................................................

Expense of federal funds purchased and securities sold under agreements to

repurchase in domestic offices........................................................................

Interest on demand notes issued to the U.S. Treasury and other

borrowed money............................................................................................

Interest on subordinated notes and debentures....................................................

Occupancy expense of bank premises, net, and furniture and equipment

expense .........................................................................................................

Provision for possible loan losses ......................................................................

Other operating expenses...................................................................................

Income before income taxes and securities gains or losses...........................................

Applicable income ta x e s .........................................................................................................

Income before securities gains or lo sse s............................................................................

Securities gains or losses, gross ................................................

Applicable income taxes .......................................................

Securities gains or losses, net ............................................................................

Income before extraordinary ite m s .......................................................................................

Extraordinary items, gross......................................................................................................

Applicable income taxes.....................................................................................

Extraordinary items, n e t.....................................................................................

Net in co m e .................................................................................................................................

27,888,772

5,985,504

917,638

283,203

2,052,345

2,286,132

6,549,607

26,245,936

3,322,993

377,195

294,098

2,324,644

3,612,410

7,185,305

9,250,424

2,084,028

7,166,396

-161,247

-74,195

-87,052

7,079,344

17,877

5,957

11,920

8,976,462

1,792,696

7,183,766

34,376

-2,690

37,066

7,220,832

46,823

13,044

33,779

9,913,685

2,290,772

7,622,913

312,267

118,233

194,034

7,816,947

28,104

1,774

26,330

11,565,958

2,831,871

8,734,087

141,674

43,189

98,485

8,832,572

55,082

8,249

46,833

15,101,310

4,162,112

10,939,198

-447,124

-222,230

-224,894

10,714,304

43,737

-1,493

45,230

17,891,188

4,742,118

13,149,070

-649,685

-299,727

-349,958

12,799,112

40,001

625

39,375

7,091,264 7,254,611 7,843,277 8,879,405 10,759,534 12,838,487

INCOME OF INSURED BANKS 189

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Federal Reserve Bank of St. Louis
T a b le 115 . INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES 

(STATES AND OTHER AREAS), 1974-1979-C O N TIN U E D 

(Amounts in thousands of dollars)

Income item 1974 1975 19761 1977' 19781 1979

Memoranda

Dividends declared on equity capital— total ..........................................................................

Cast? dividends declared on common s to c k......................................................................

Cash dividends declared on preferred s to c k......................................................................

Provision for income taxes— to ta l............................................................................................

U.S. Federal income taxes ..................................................................................................

U.S. State and local income taxes .....................................................................................

Foreign income taxes2 ...........................................................................................................

Net loan losses or recoveries— to ta l.......................................................................................

Recoveries on loans .............................................................................................................

Losses on loans ....................................................................................................................

2,768,104

2,765,674

2,430

1,759,739

1,357,934

402,345

-1,956,931

461,350

-2,418,281

3,032,444

3,030,230

2,214

1,727,041

1,225,927

501,114

-3 ,2 4 2 ,8 3 0

547,380

-3,790,210

3,036,222

3,033,628

2,594

2,410,779

1,371,638

491,712

547,429

-3 ,5 0 3 ,2 4 6

687,401

-4,190,647

3,304,789

3,301,525

3,264

2,883,309

1,773,219

525,833

584,257

-2 ,7 9 7 ,1 0 5

813,900

-3,611,005

3,721,926

3,718,211

3,715,7,809

3,938,389 2,537,962

656,274

744,153

-2 ,4 9 6 ,9 7 7

1,074,435

3,571,412

4,455,293

4,447,484

4,443,017

2,653,069

902,579

887,369

-2 ,5 6 4 ,2 6 0

1,198,985

3,763,245

Average assets, liabilities, and equity capital5

Assets— total

Cash and due from depository in stitu tio n s........................................................................

U .S. Treasury securities and obligations of other U.S. agencies

and corporations3 .............................................................................................................

Obligations of states and political subdivisions ...............................................................

Other securities3 ....................................................................................................................

Net loans6 ...............................................................................................................................

All other a s s e ts ......................................................................................................................

Liabilities and equity capital— total .....................................................................................

Total d e p o s its ........................................................................................................................ Demand deposits .............................................................................................................

Time and savings deposits..............................................................................................

Deposits in foreign offices ..............................................................................................

Subordinated notes and deb e n tu res...................................................................................

Other borrowings and all other liabilities ..........................................................................

Total equity capital ................................................................................................................

871.394.495

122,224,773

52,822,043

94,524,535

35,256,603

519,572,131

46,994,410

871.394.495

710,029,868

307,363,186

402,666,682

4,204,891

100,573,737

56,585,999

924.946.738

126,838,007

65,992,148

98,953,279

39,203,344

536,061,723

57,898,237

924.946.738

756,948,586

313,836,391

443,112,195

4,328,561

101,918,202

61,751,389

1.123.469.176

194,312,500

88,520,749

102,733,896

51,110,347

632,696,842

54,094,842

1.123.469.176

944,238,914

320,488,016

474,499,317

149,251,581

4,865,972

105,647,909

68,716,381

1.249.961.111

218,357,890

96,664,647

108,429,263

54,293,953

709,816,228

62,399,129

1.249.961.111

1,043,478,575

347,903,682

519,939,386

175,635,507

5,500,132

125,239,154

75.743,250

1.403.493.088

248,632,890

131,799,055

117,331,876

20,129,242

764,772,496

74,589,592

1.403.493.088

1,157,408,490

377,305,796

592,066,952

188,034,718

5,952,193

156,087,365

84,028,113

1.584.170.199

283,213,780

133,287,094

127,770,123

23,079,973

922,211,128

94,608,101

1.584.170.199

1,276,968,868

393,573,301

633,107,213

250,288,354

6,202,587

208,542,197

92,456,547

Number of employees on payroll (end of p e rio d )................................................................. 1,160,585 1,226,415 1,255,025 1,320,598 1,319,828 1,410,816

Number of banks (end of period) ............................................................................................ 14,228 14,384 14,411 14,412 14,391 14,364

1 Data are from fully consolidated reports on income, including domestic and foreign offices.

2Figures not available before 1976.

S e cu ritie s held in trading accounts are included in “ All other assets” , income from these securities is included in “ Other incom e.”

4Included in “ Interest on other deposits” before 1976.

5Averages of amounts reported at beginning, middle, and end of year, 1967, 1977, 1978 averages are based on consolidated reports, 

domestic and foreign.

6For years before 1976, data are gross loans. Includes federal funds sold.

1 90 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
T a b le 116 . RATIOS OF INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1974-1979

Income item 1974 1975 19761 19771 19781 1979

Amounts per $100 of operating income 

Operating income— to ta l...................................................................................................................

Interest and fees on loans2 ..........................................................................................................

Interest on balances with depository institutions3 .....................................................................

Interest on U.S. Treasury securities and on obligations of other U.S.

Government agencies and co rp o ra tio n s..................................................................................

Interest on obligations of States and political subdivisions ......................................................

Income from all other se cu ritie s..................................................................................................

Income from fiduciary a c tiv itie s .............................................................................................

Service charges on deposit accounts in dom estic offices ....................................................

Other service charges, com m issions, and f e e s .........................................................................

Other operating income .............................................................

$100.00

74.60

5.05

6.53

3.65

2.21

2.14

2.07

3.75

$100.00

68.62

6.67

7.39

4.33 

2.41

2.34 

2.48 

5.76

$100.00

66.49

5.56

7.41

6.37

4.05

2.23

2.03

2.71

3.16

$100.00

68.03

5.41

7.08

5.94

3.80

2.19

2.00

2.67

2.88

$100.00

70.31

5.91

8.26

5.32

.96

1.88

1.80

2.59

2.96

$100.00

72.08

7.10

7.11 

4.63

.80

1.58

1.68

2.42

2.60

Operating expenses— total ...........................................................................................................

Salaries and employee benefits .............................................................

Interest on deposits in dom estic o ffic e s ....................................................

Interest on deposits in foreign offices3 ..............................................................................

Interest on demand notes issued to the U.S. Treasury and other borrowed money4 ...........

Occupancy expense of bank premises, net, and furniture and equipment expense...............

Provision for possible loan losses .....................................................................................

Other operating e xp e n se s.......................................................................................

86.43

17.00

40.92

10.54

5.01

3.35

9.61

86.51

19.06

39.43

6.00

5.79

5.43

10.80

87.71

18.29

32.55

10.85

5.36

5.56

4.57 

10.53

87.20

18.09

31.65

11.31

6.37

5.51

3.65

10.62

86.70

16.50

31.39

12.82

8.07

4.92

3.10

9.90

88.09

14.35

31.51

16.32

10.66

4.18

2.52

8.55

Income before income taxes and securities gains or losses...................................................... 13.57 13.49 12.29 12.80 13.30 11.91

Amounts per $100 of total assets5

Operating incom e— to ta l..................................................................................................

Operating expenses— t o t a l............................................................................................

Income before income taxes and securities gains or losses .................................................

Net in c o m e .......................................................

7.82

6.76

1.06

.81

7.20

6.23

.97

.78

7.18

6.30

.88

.70

7.23

6.30

.93

.71

8.09

7.02

1.08

.77

9.49

8.36

1.13

.81

Recoveries credited to a llo w a n ce ...................................................................................

Losses charged to a llo w a n c e .........................................................

Provision for possible loan losses ..................................................................

.08

-.2 5

.25

.08

-.2 4

.24

Amounts per $100 of total equity capital5

Net in c o m e ......................................................................................

Cash dividends declared on com m on s to c k ................................................

Net change in capital accounts (less cash dividends on common and preferred stock) ........

12.53

4.89

7.64

11.75

4.91

6.84

11.41

4.42

6.99

11.72

4.36

7.36

12.80 

4.42 

14.796

13.89

4.81

16.53

Special ratios5

Income on loans per $100 of loans2 ............................................

Income on U.S. Treasury and other U.S. Government agency and corporation

securities per $100 of those se cu ritie s.............................................................

Income on obligations of states and political subdivisions per $100 of

those obligations ..................................................................

Service charges on demand deposits in dom estic offices per $100 of

those deposits ..............................................................................................

Interest paid on time and savings deposits in dom estic offices per $100 of 

those deposits .......................................................................................................

9.79

6.51

4.71

.47

6.93

8.52

6.73

4.97

.50

5.92

8.48

6.75

5.00

.51

5.53

8.66

6.62

4.95

.52

5.50

9.76

7.12

4.80

.54

6.02

11.64

8.02

5.44

.64

7.48

Number of banks at end of period ................................................................................................ 14,228 14,384 14,411 14,412 14,391 14,364

Based on consolidated (including foreign) reports of incom e— see table 115, note 1.

^Includes federal funds sold.

3Not available before 1976.

"Includes interest on federal funds purchased, subordinated notes and debentures, and other borrowed money. 

5Ratios are based on averages of assets and liabilities— see table 115 notes 5 and 6. 

in c lu d e s all changes; prior to 1978 the ratio represents changes due to net income only.

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Federal Reserve Bank of St. Louis
T a b le 117 . I N C O M E O F A L L I N S U R E D C O M M E R C I A L B A N K S IN T H E U N I T E D S T A T E S ( S T A T E S A N D O T H E R A R E A S ) , 1 9 7 9

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 

(A m ounts in tho usands of do llars)

Income item

Total

Members F.R. System Nonmembers 

F.R. System

Operating 

throughout 

the year

Operating 

less than 

National Member full year

Operating income— total ...................................................................................................................................................

Interest and fees on lo a n s ..............................................................................................................................................

Interst on balances with depository institutions ........................................................................................................

Income on federal funds sold and securities purchased under agreements to resell in

dom estic offices ...........................................................................-a .........................................................................

Interest on U.S. Treasury securities and on oblications of other U.S. Government

agencies and corp oration s.........................................................................................................................................

Interest on obligations of states and political su b d iv isio n s.......................................................................................

Income from all other s e c u ritie s ...................................................................................................................................

Income from direct lease fin a n c in g ..............................................................................................................................

Income from fiduciary activities ...................................................................................................................................

Service charges on deposit accounts in dom estic o ffic e s .........................................................................................

Other service charges com m issions, and fees ...........................................................................................................

Other operating in c o m e ..................................................................................................................................................

Operating expenses— to ta l................................................................................................................................................

Salaries and employee b e n e fits.....................................................................................................................................

Interest on time certificates of deposit of $100,000 or more issued by domestic offices ..................................

Interest on deposits in foreign o ffic e s ..........................................................................................................................

Interest on other d e p o s its ..............................................................................................................................................

Expense of federal funds purchased and securities sold under agreement to repurchase

in dom estic offices ....................................................................................................................................................

Interest on demand notes issued to the U.S. Treasury and other borrowed m oney .............................................

Interest on subordinated notes and debentures ........................................................................................................

Occupancy expense of bank premises, net, and furniture and equipment e xp e n se .............................................

Provision for possible loan loss ...................................................................................................................................

Other operating expenses ..............................................................................................................................................

Income before income taxes and securities gains or lo s s e s .....................................................................................

Income before securities gains or lo s s e s ......................................................................................................................

Securities gains (losses), gross .....................................................................................................................................

Applicable income taxes ................................................................................................................................................

Securities gains (losses), net .......................................................................................................................................

150,282,353

102,192,459

10,669,726

6,126,340

10,686,277

6,955,222

1,198,071

1,073,254

2,375,711

2,528,752

3,641,607

2,834,934

89,886,053

61,801,854

6,931,224

3,551,158

5,367,188

3,748,216

754,858

730,483

1,345,019

1,316,051

2,453,021

1,886,981

29,026,821

19,454,915

3,142,851

999,274

1,571,506

1,146,880

232,966

255,830

763,524

291,667

556,801

610,607

31,369,479

20,935,690

595,651

1,575,908

3,747,583

2,060,126

210,247

86,941

267,168

921,034

631,785

337,346

150,200,882

102,152,334

10,662,928

6,106,476

10,679,116

6,952,418

1,197,133

1,073,247

2,375,710

2,526,993

3,640,466

2,834,061

81,471

40,125

6,798

19,864

7,161

2,804

938

7

1

1,759

1,141

873

132,391,165

21,562,167

18,178,650

24,523,807

29,185,414

12,356,285

3,167,247

501,470

6,281,496

3,785,642

12,848,987

79,725,473

12,403,664

10,723,460

16,903,529

15,737,040

8,498,431

2,014,743

265,383

3,571,282

2,251,734

7,356,207

26,089,581

3,718,173

3,594,811

7,350,364

3,434,404

3,051,096

963,284

99,526

1,135,114

677,863

2,064,946

26,576,111

5,440,330

3,860,379

269,914

10,013,970

806,758

189,220

136,561

1,575,100

856,045

3,427,834

132,308,780

21,540,330

18,164,657

24,523,807

29,170,579

12,355,601

3,166,886

501,451

6,274,045

3,782,988

12,828,436

82,385

21,837

13,993

0

14,835

684

361

19

7,451

2,654

20,551

17,891,188

4,742,118

13,149,070

-6 4 9 ,6 8 5

-2 9 9 ,7 2 7

-3 4 9 ,9 5 8

10,160,580

2,753,735

7,406,845

-3 4 9 ,3 8 3

-1 6 3 ,2 4 0

-1 8 6 ,1 4 3

2,937,240

890,572

2,046,668

-1 3 5 ,4 7 6

-7 0 ,7 0 2

-6 4 ,7 7 4

4,793,368

1,097,811

3,695,557

-1 6 4 ,8 2 6

-6 5 ,7 8 5

-9 9 ,04 1

17,892,102

4,741,365

13,150,737

-6 4 9 ,7 2 8

-2 9 9,7 3 1

-3 4 9 ,9 9 7

-9 1 4

753

-1,6 67

43

4

39

1 92 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Income item

Total

Members F.R. System NonMembers 

F.R. System

Operating 

throughout 

the year

Operating 

less than 

National Member full year

Income before extraordinary ite m s ......................................................................

Extraordinary items, g ro ss................................................................................................................................................

Applicable income taxes ................................................................................................................................................

Extraordinary items, net ................................................................................................................................................

Net In c o m e ..........................................................................................................................................................................

MEMORANDA

Dividends declared on equity capital— to ta l.................................................................................................................

Cash dividends declared on common stock ..............................................................................................................

Cash dividends declared on preferred s to c k..............................................................................................................

Provision for income taxes— to ta l...................................................................................................................................

U.S. Federal income taxes............................................................................................................................................. U.S. States and local income taxes.............................................................................................................................. Foreign income taxes......................................................................................................................................................

Net loan losses (recoveries)— to ta l................................................................................................................................

Recoveries credited to allowance ................................................................................................................................

Losses charged to allowance.........................................................................................................................................

Number of full-tim e equivalent employees at end of period ................................................

Number of b a n k s ........................................................................................

12,799,112

40,001

626

39,375

12,838,487

4,455,293

4,447,484

7,809

7,220,702

27,920

1,957

25,963

7,246,665

2,649,709

2,648,199

1,510

1,981,894

-2,2 92

-1 ,4 2 9

-8 6 6

1,981,028

828,006

827,770

236

3,596,516

14,376

98

14,278

3,610,794

977,578

971,515

6,063

12,800,740

39,990

625

39,365

12,840,105

4,455,170

4,447,361

7,809

-1,628

9

1

10

-1,618

123

123

0

4,443,017

2,653,069

902,579

887,369

2.592.452

1.442.452

437,592

712,408

818,441

366,988

282,775

168,678

1,032,124

843,629

182,212

6,283

4,442,259

2,652,558

902,332

887,369

758

511

247

0

-2,564,260

1,198,985

3,763,245

-1,539,866

756,619

2,296,485

-412,097

205,372

617,469

-612,297

236,994

849,291

-2,563,817

1,198,765

3,762,582

-443

220

663

1,410,816 786,054 216,402 408,360 1,408,279 2,537

14,364 4,448 977 8,939 14,159 205

INCOME OF INSURED BANKS 193

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Federal Reserve Bank of St. Louis
Table 118. INCOME OF ALL INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1979 IN THE UNITED STATES

(STATES AND OTHER AREAS)

BANKS GROUPED BY AMOUNTS OF ASSETS 

(Amounts in thousands of dollars)

Banks with assets of

Income item All

banks

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 m illion 

to

$49.9 m illion

$50.0 million 

to

$99.9 m illion

$100.0 m illion 

to

$299.9 m illion

$300.0 m illion 

to

$499.9 m illion

$500.0 m illion 

to

$999.9 m illion

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Operating in co m e — t o t a l .........................................................

Interest and fees on lo a n s ....................................................

150,200,882 229,698 1,329,299 6,709,546 10,218,177 10,561,366 14,564,801 5,843,893 8,874,771 26,621,702 65,247,629

102,152,334 132,732 823,076 4,379,059 6,838,603 7,177,002 9,891,404 3,848,478 5,973,930 18,022,378 45,065,672

Interest on balances with depository institutions . 10,662,928 2,754 13,943 58,064 84,474 84,290 127,325 87,009 189,421 1,271,845 8,743,803

Incom e on federal funds sold and securities 

purchased under agreements to resell in 

dom estic o ffic e s ................................................................ 6,106,476 22,358 102,497 417,529 545,361 511,205 701,165 346,901 437,111 1,160,325 1,862,024

Interest on U.S. Treasury securities and on 

obligations of other U.S. Government agencies 

and c o rp o ra tio n s ................................................................ 10,679,116 50,779 249,387 968,938 1,292,054 1,196,080 1,582,703 633,315 805,291 1,938,607 1,961,962

Interest on obligations of states and political 

subdivisions ....................................................................... 6,952,418 5,309 51,373 409,982 754,634 818,898 1,118,584 395,236 563,042 1,383,985 1,451,375

Income from all other s e c u ritie s ........................................ 1,197,133 1,329 6,869 28,774 46,720 56,937 70,527 43,342 79,796 123,722 739,117

Income from direct lease fin a n cin g ................................... 1,073,247 26 491 4,635 9,753 19,852 34,317 26,018 69,553 186,156 722,446

Incom e from fiduciary activities ........................................ 2,375,710 567 583 27,979 30,508 84,661 213,819 108,465 192,640 684,514 1,031,974

Service charges on deposit accounts in domestic 

o ffic e s ................................................................................... 2,526,993 6,784 41,225 223,751 333,323 322,034 373,607 136,929 205,339 463,996 420,005

Other service charges, com m issions, and fees ............ 3,640,466 4,607 26,837 130,040 191,467 189,736 298,124 152,306 239,748 830,024 1,577,577

Other operating income ...................................................... 2,834,061 2,453 13,018 60,795 91,280 100,671 153,226 65,894 118,900 556,150 1,671,674

O perating expenses— total .................................................... 132,308,780 190,221 1,102,458 5,524,174 8,462,138 8,885,794 12,489,490 5,078,158 7,813,488 23,842,090 58,920,769

Salaries and employee be n e fits.......................................... 21,540,330 54,535 266,995 1,196,918 1,716,726 1,780,268 2,456,966 987,827 1,559,431 4,170,215 7,350,449

Interest on tim e certificates of deposit of 

$100,000 or more issued by dom estic offices 18,164,657 8,854 65,280 409,132 813,059 1,085,137 1,931,312 887,537 1,365,699 4,462,961 7,135,686

Interest on deposits in foreign offices ............................ 24,523,807 0 0 0 0 0 4,668 12,055 159,772 1,604,374 22,742,938

Interest on other d e p o s its .................................................... 29,170,579 74,582 493,817 2,554,504 3,896,113 3,763,523 4,635,451 1,537,892 2,057,023 4,710,905 5,446,769

Expense of federal funds purchased and securities 

sold under agreement fo repurchase in dom estic 

o ffic e s ................................................................................... 12,355,601 744 6,891 46,351 95,265 188,569 586,353 441,026 799,133 3,494,362 6,696,907

Interest on demand notes issued to the U.S. Treasury 

and other borrowed m o n e y ............................................. 3 ,166,886 264 2,167 21,595 50,628 75,609 126,737 57,710 109,072 460,318 2,262,786

Interest on subordinated notes and d e b e n tu re s ............ 501,451 111 951 9,854 22,785 32,820 62,719 27,263 51,537 134,309 159,102

Occupancy expense of bank premises, net, and

furniture and equipm ent e x p e n s e .................................

Provision fo r possible loan lo s s ........................................

6,274,045 12,281 66,145 316,937 480,917 524,143 766,132 322.279 511,931 1,257,311 2,015,969

3,782,988 7,758 40,963 188,159 268,816 275,097 354,944 151|863 240,926 843,807 1,410,655

Other operating e x p e n s e s ....................................................

Incom e before incom e taxes and securities gains or 

losses ........................................................................................

12,828,436 31,092 159,249 780,724 1,117,829 1,160,628 1,564,208 652,706 958,964 2,703,528 3,699,508

17,892,102 39,477 226,841 1,185,372 1,756,039 1,675,572 2,075,311 765,735 1,061,283 2,779,612 6,326,860

Applicable incom e ta x e s ......................................................... 4 ,741,365 7,890 46,811 267,439 405,291 370,689 423,351 156,112 218,037 575,986 2,269,759

1 94 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Income before securities gains or losses...................... 13,150,737 31,587 180,030 917,933 1,350,748 1,304,883 1,651,960 609,623 843,246 2,203,626 4,057,101

Securities gains (losses), gross....................................

Applicable income ta xe s .............................................

Securities gains (losses), n e t.....................................

-649,728

-299,731

-349,997

-837

- 6

-831

-5,641

-1,272

-4,369

-33,629

-9,065

-24,564

-49,953

-17,091

-32,864

-54,023

-21,648

-32,375

-68,355

-31,523

-36,832

-30,971

-15,179

-15,792

-36,198

-17,528

-18,670

-186,854

-88,879

-97,975

-183,265

-97,540

-85,725

Income before extraordinary items................................ 12,800,740 30,756 175,661 893,369 1,317,884 1,272,508 1,615,128 593,831 824,576 2,105,651 3,971,376

Extraordinary items, gross ............................................

Applicable income ta xe s .............................................

Extraordinary items, n e t.............................................

39,990

625

39,365

12

4

8

297

56

241

2,246

-2 4

2,270

2,891

69

2,822

6,029

-306

6,335

17,219

2,175

15,044

7,463

501

6,962

3,624

474

3,150

209

-2,324

2,533

0

0

0

Net income..................................................................... 12,840,105 30,764 175,902 895,639 1,320,706 1,278,843 1,630,172 600,793 827,726 2,108,184 3,971,376

Memoranda

Dividends declared on equity capital— total.................. Cash dividends declared on common stock................ Cash dividends declared on preferred stock................4,455,170 4,447,361 7,8096.916 6.9160

34,143 34,10835

192,670 192,336 334

322,194

321,688 506

374,441 373,637 804

553,470 552,454 1,016

207,039 203,805 3,234

320,709 319,487 1,222

917,950 917,292 658

1.525.638 1.525.6380

Provision for income taxes— total.................................. U.S. Federal income taxes ......................................... U.S. state and local income taxes .............................. Foreign income taxes .................................................

4,442,259 2,652,558 902,332 887,3697,888 6,787 1,101045,595 39,084 6,5110

258,350 224,728 33,6220

388,269 339,610 48,558 101

348,735 300,787 47,599 348394,003 329,825 64,1780141,434 118,514 22,91010

200,983 153,283 45,407 2,293

484,783 334,226 107,199 43,358

2,172,219 805,713 525,247 841,259

Net loan losses (recoveries)— total .............................. Recoveries credited to allowance............................... Losses charged to allowance .....................................

-2,563,817 1,198,765 3,762,582

-5,691 2,495 8,186

-30,371 14,347 44,718

-136,685 62,884 199,569

-194,577 88,665 283,242

-200,152 87,723 287,875

-255,207 102,575 357,782

-119,394 48,748 168,142

-178,086 67,215 245,301

-597,566 247,566 845,132

-846,088 476,547 1,322,635

Number of full-time equivalent employees 

at end of period........................................................... 1,408,279 4,043 19,088 86,494 127,138 132,183 194,059 72,430 110,006 273,921 388,917

Number of banks ........................................................... 14,159 728 2,066 4,694 3,365 1,764 1,049 170 148 142 33

INCOME OF INSURED BANKS 195

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Federal Reserve Bank of St. Louis
Table 119. RATIOS OF INCOME OF ALL INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1979 IN THE UNITED STATES

(STATES AND OTHER AREAS)

BANKS GROUPED BY AMOUNT OF ASSETS

Banks with assets of—

Income item All

banks

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Amounts per $100 of operating income

Operating Income— to t a l................................................................................

Interest and fees on loans............................................................................

$100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00

68.01 57.78 61.92 65.26 66.92 67.95 67.91 65.85 67.32 67.70 69.08

Interest on balances with depository in s titu tio n s .................................... 7.10 1.20 1.05 .87 .83 .80 .87 1.49 2.13 4.78 13.40

Income on federal funds sold and securities purchased under 

agreements to resell in domestic offices ............................................ 4.07 9.73 7.71 6.22 5.34 4.84 4.81 5.94 4.93 4.36 2.85

Interest on U.S. Treasury securities and on obligations of other U.S. 

Government agencies and corp o ra tio n s............................................... 7.11 22.11 18.76 14.44 12.64 11.33 10.87 10.84 9.08 7.28 3.01

Interest on obligations of states and political subdivisions ..................

Income from all other securities.................................................................

4.63 2.31 3.86 6.11 7.39 7,75 7.68 6.76 6.34 5.20 2.22

.80 .58 .52 .43 .46 .54 .48 .74 .90 .46 1.13

Income from fiduciary a ctiv itie s ................................................................. 1.58 .25 .04 .42 .30 .80 1.47 1.86 2.17 2.57 1.58

Service charges on deposit accounts in domestic offices .................... 1.68 2.95 3.10 3.33 3.26 3.05 2.57 2.34 2.31 1.74 .64

Other service charges, commissions, and fees ...................................... 2.42 2.01 2.02 1.94 1.87 1.80 2.05 2.61 2.70 3.12 2.42

Other operating income .............................................................................. 2.60 1.08 1.02 .98 .99 1.14 1.29 1.57 2.12 2.79 3.67

Operating expenses— total ............................................................................ 88.09 82.81 82.94 82.33 82.81 84.13 85.75 86.90 88.04 89.56 90.30

Salaries and employee benefits................................................................... 14.34 23.74 20.09 17.84 16.80 16.86 16.86 16.90 17.57 15.66 11.27

Interest on deposits in domestic o ffic e s ................................................... 31.51 36.32 42.06 44.17 46.08 45.90 45.09 41.51 38.57 34.46 19.28

Interest on deposits in foreign offices ..................................................... 16.33 .00 .00 .00 .00 .00 .03 .21 1.80 6.03 34.86

Expense of federal funds purchased and securities sold under 

agreements to repurchase in domestic o ffic e s .................................... 8.23 .32 .52 .69 .93 1.79 4.03 7.55 9.00 13.13 10.26

Interest on demand notes issued to the U.S. Treasury and other 

borrowed m oney....................................................................................... 2.44 .16 .23 .47 .72 1.03 1.30 1.45 1.81 2.23 3.71

Occupancy expense of bank premises, net, and furniture and 

equipment expense.................................................................................. 4.18 5.35 4.98 4.72 4.71 4.96 5.26 5.51 5.77 4.72 3.09

Provision for possible loan lo s s ................................................................. 2.52 3.38 3.08 2.80 2.63 2.60 2.44 2.60 2.71 3.17 2.16

Other operating expenses........................................................................... 8.54 13.54 11.98 11.64 10.94 10.99 10.74 11.17 10.81 10.16 5.67

Income before income taxes and securities gains or lo sse s .................. 11.91 17.19 17.06 17.67 17.19 15.87 14.25 13.10 11.96 10.44 9.70

Amounts per $100 of total assets

Operating income— to ta l.................................................................................. 9.49 7.35 7.88 8.48 8.83 9.09 9.36 9.00 9.39 9.44 9.96

Operating expenses— total .............................................................................. 8.36 6.09 6.54 6.98 7.31 7.65 8.03 7.82 8.27 8.45 8.99

Income before income taxes & securities gains or losses ........................ 1.13 1.26 1.34 1.50 1.52 1.44 1.33 1.18 1.12 .99 .97

Net in c o m e ........................................................................................................ .81 .98 1.04 1.13 1.14 1.10 1.05 .93 .88 .75 .61

Recoveries credited to a llow ance................................................................... .08 .08 .09 .08 .08 .08 .07 .08 .07 .09 .07

Losses charged to allowance ......................................................................... -.2 4 -.2 6 -.2 7 -.2 5 -.2 4 - .2 5 -.2 3 -.2 6 -.2 6 - .3 0 -.2 0

Provision for possible loan losses ................................................................. .24 .25 .24 .24 .23 .24 .23 .23 .25 .30 .22

Amounts per $100 of equity capital

Net in c o m e ........................................................................................................ 13.91 8.03 10.90 13.14 14.10 14.30 14.52 13.49 13.49 12.72 14.83

Cash dividends declared on common s to c k ................................................. 4.82 1.81 2.11 2.82 3.43 4.18 4.92 4.58 5.21 5.54 5.70

Net change in capital accounts (less cash dividends on common and 

preferred stock) ........................................................................................... 16.18 9.05 12.09 14.46 15.98 15.85 16.57 16.17 15.25 18.00 16.06

Special ratios

Income on loans per $100 of loans .............................................................. 11.65 8.19 8.80 9.68 10.32 10.75 11.31 10.87 11.58 11.62 12.58

Income on U.S. Treasury and on other U.S. Government agency and 

corporation securities per $100 of those se cu ritie s............................... 8.02 6.74 7.14 7.51 7.91 8.04 8.08 8.08 7.89 8.07 8.46

Income on obligations of state and political subdivisions per $100 of 

those obligations........................................................................................... 5.44 4.87 4.58 4.84 5.10 5.21 5.40 5.15 5.36 5.49 6.21

Service charge on demand deposits in domestic offices per $100 of 

those deposits............................................................................................... .64 .63 .82 .98 1.02 .98 .84 .69 .71 .59 .33

Interest paid on time & savings deposits in domestic offices per 

$100 of those d eposits................................................................................ 7.48 5.13 5.60 6.17 6.68 6.96 7.32 7.08 7.37 7.62 8.86

Number of banks at end of period ................................................................ 14,159 728 2,066 4,694 3,365 1,764 1,049 170 148 142 33

1 96 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 120. INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1974-1979

(Amounts in thousands of dollars)

Income item 1974 1975 1976 1977 1978 1979

Operating income— to ta l................................................................................................

Interest and fees on: Real estate loans, n e t.................................................................................................................

Other lo a n s...................................................................................................................................

Income on federal funds sold and securities purchased under agreements to re se ll.............

Interest on U.S. Treasury, agency, and corporation o b lig atio n s .............................................

Interest on corporate b o n d s ..........................................................................................................

Interest on obligations of States and political subdivisions of the U .S .....................................

Interest on other bonds, notes, and debentures .......................................................................

Dividends on s to c k ..........................................................................................................................

Other service charges, com m issions, and fees .........................................................................

Other operating income .................................................................................................................

Operating expenses— t o ta l...............................................................................................................

Interest and dividends on: Savings deposits (including deposits subject to transfer by ord e r)....................................

Time deposits..............................................................................................................................

Expense of federal funds purchased and securities sold under agreement to repurchase ...

Interest on other borrowed m o n e y ...............................................................................

Interest on subordinated notes and deb e n tu res.........................................................................

Salaries and employee benefits ...................................................................................

Occupancy expense of bank premises, net ...................................................................

Furniture and equipment expense .................................................................................

Provision for possible loan losses ...............................................................................

Other operating e xp e n se s ............................................................................................

Income before income taxes and net realized gains or losses

Applicable income and franchise taxes ..........................................................................

Income before net realized gains or lo s s e s .....................................................................

Net realized gains or losses, net ....................................................................................................

Plus: Applicable income taxes .....................................................................................

Net realized gains or losses, gross ................................................................................

Securities ..................................................................................................................

Extraordinary ite m s ......................................................................................................

Net incom e............................................................................................................................................

6,493,551

4,503,214

337,884

N/A

403,940

743,944

47,028

125,718

170,273

27,875

133,715

7,187,542

4,817,741

283,416

N/A

567,577

929,613

74,858

150,841

191,401

32,968

139,127

8,331,083

5,225,101

334,625

N/A

869,038

1,166,755

142,958

200,849

207,398

39,825

144,534

9,433,998

5,745,032

433,478

N/A

1,096,580

1,294,958

166,854

255,214

227,542

47,614

166,726

10,668,024

6,500,885

601,510

N/A

1,229,607

1,324,370

191,868

293,024

261,677

57,307

207,776

11,966,717

7,173,749

490,742

408,238

1,380,468

1,351,138

200,592

260,660

287,779

75,930

337,421

5,902,669

3,607,170

1,309,554

N/A

66,110

N/A

427,642

114,206

43,815

10,034

324,138

590,882

161,870

429,012

-111,501

N/A

-111,501

-11 1,5 0 1

N/A

6,624,666

3,778,695

1,717,147

N/A

55,168

N/A

486,329

135,754

52,543

21,836

377,194

562,876

171,549

391,327

-25,899

N/A

-25,899

-2 5 ,8 9 9

N/A

7,646,301

4,160,435

2,127,531

N/A

45,365

N/A

554,594

158,044

62,285

78,732

459,315

684,782

227,088

457,694

49.283

N/A

49.283

49.283 

N/A

8,519,950

4,223,409

2,774,056

N/A

46,827

N/A

626,108

172,059

73,863

69,950

533,678

914,048

280,168

633,880

47.634

N/A

47.634

47.634 

N/A

9,503,400

3,930,597

3,776,077

N/A

122,436

N/A

719,004

189,459

88,131

109,426

568,270

1,164,624

310,945

853,679

-44,941

N/A

-44,941

-4 4 ,94 1

N/A

11,060,177

3,229,489

5,729,297

138,398

120,836

35,894

819,502

210,839

103,176

65,204

607,542

906,540

259,173

647,367

1,807

-1 ,0 3 7

770

-1 2 ,8 4 7

13,617

317,511 365,428 506,977 681,514 808,738 649,174

INCOME OF INSURED BANKS 197

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Federal Reserve Bank of St. Louis
Ta b le 120. INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1974-1979-CONTINUED

(Amounts in thousands of dollars)

Income item 1974 1975 1976 1977 1978 1979

Memoranda

Changes in surplus accounts, net ....................................................................................................

Recoveries credited to allowance for possible loan losses: Real estate loans...............................................................................................................................

Other lo a n s........................................................................................................................................

Losses charged to allowance for possible loan losses:

Real estate loans...............................................................................................................................

Other lo a n s........................................................................................................................................

Provision for income and franchise taxes— t o t a l............................................................................

U.S. Federal income t a x e s .............................................................................................................

State and local income and franchise t a x e s .................................................................................

369,166

N/A

N/A

N/A

N/A

161,870

81,089

80,781

407,314

N/A

N/A

N/A

N/A

171,549

66,543

105,006

545,665

N/A

N/A

N/A

N/A

227,088

1.07,801

119,287

834,717

N/A

N/A

N/A

N/A

280,168

139,151

141,017

826,415

N/A N/A

N/A

N/A

310,945

171,002

139,943

649,415

11,213

2,184

45,568

8,558

259,173

127,363

131,810

Average assets and liabilities1

Assets— total

Cash and due from depository in stitu tio n s...................................................................................

U.S. Treasury, agency and corporation o b lig atio ns...................................................................

All other securities ...........................................................................................................................

Real estate lo a n s ...............................................................................................................................

Other loans ........................................................................................................................................

Real estate owned other than bank p re m ise s..............................................................................

All other assets (including Federal funds sold and securities purchased) ..............................

Liabilities and surplus accounts— total ..........................................................................................

Total d e p o s its ...................................................................................................................................

Savings deposits...........................................................................................................................

Time deposits...............................................................................................................................

Demand deposits ........................................................................................................................

All other lia b ilitie s .............................................................................................................................

Subordinated notes and deben tu res..............................................................................................

Total surplus a c c o u n ts ....................................................................................................................

94.479.755

1,649,653

5,913,006

16,485,646

64,803,111

1,990,416

209,908

3,428,015

94.479.755

85,970,776

56,878,427

28,175,681

916,668

1,814,045

143,958

6,550,976

101.872.663

1,940,685 

7,852,988 

19,128,255 

66,734,272 

2,346,350 

324,656 

3,545,457

101.872.663

93,015,070

59,730,943

32,305,817

978,310

1,791,230

172,510

6,893,853

114.218.358

1,767,488

11,584,060

23,091,101

70,258,177

2,803,723

465,070

4,248,739

114.218.358

104,711,248 64,969,577

38,718,326

1,023,345

1,855,561

203,313

7,448,236

126.893.697

1,962,325

14,610,900

25,907,208

75,389,140

3,337,139

485,284

5,201,701

126.893.697

116,564,671

69,232,480

46,005,857

1,326,334

1,940,484

262,102

8,126,440

137.596.852

2,342,907

15,926,986

27,162,309

81,914,837

3,896,915

410,918

5,941,980

137.596.852

125,620,287

68,634,606

55,267,097

1,718,584

2,724,655

351,030

8,900,880

145.330.504

3.084.363 

16,840,284 

26,942,558 

86,682,616

4,672,805

339,514

6.768.364

145.330.504

131,842,343

59,979,665

69,619,528

2,243,150

3,555,359

373,804

9,558,998

Number of full-time equivalent employees on payroll (end of p e rio d )......................................... 37,494 40,261 45,040 49,466 53,806 53,708

Number of banks (end of p e rio d )....................................................................................................... 320 329 329 323 325 324

1 Averages of amounts reported at beginning, middle and end of year.

Note: N /A - Data not available.

1 98 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
T ab le 121. RATIO OF INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1974-1979

Income item 1974 1975 1976 1977 1978 1979

Amounts per $100 of operating income

Operating income— to ta l....................................................................................................................

Interest and fees on:

$100.00 $100.00 $100.00 $100.00 $100.00 $100.00

Real estate loans, n e t................................................................................................................. 69.35 67.03 62.72 60.90 60.93 59.95

Other lo a n s................................................................................................................................... 5.20 3.94 4.02 4.59 5.64 4.10

Income on federal funds sold and securities purchased under agreements to re se ll............. N/A N/A N/A N/A N/A 3.41

Interest on U.S. Treasury, agency, and corporation o b lig atio n s ............................................. 6.22 7.90 10.43 11.62 11.53 11.54

Interest on corporate b o n d s .......................................................................................................... 11.46 12.93 14.00 13.73 12.41 11.29

Interest on obligations of States and political subdivisions of the U .S .....................................

Interest on other bonds, notes, and debentures .......................................................................

0.72 1.04 1.72 1.77 1.80 1.68

1.94 2.10 2.41 2.71 2.75 2.18

Dividends on s to c k .......................................................................................................................... 2.62 2.66 2.49 2.41 2.45 2.40

Other service charqes, com m issions, and fees ......................................................................... 0.43 0.46 0.48 0.50 0.54 0.63

Other operating income ................................................................................................................. 2.06 1.94 1.73 1.77 1.95 2.82

Operating expenses— total ............................................................................................................... 90.90 92.17 91.78 90.31 89.08 92.42

interest and dividends on: Savings deposits (including deposits subject to transfer by o rd e r)..................................... 55.55 52.57 49.90 44.77 36.82 26.98

Time deposits.............................................................................................................................. 20.17 23.89 25.54 29.40 35.40 47.88

Expense of federal funds purchased and securities sold under agreement to repurchase . . . N/A N/A N/A N/A N/A 1.16

Interest on other borrowed m o n e y ............................................................................................... 1.02 0.77 0.54 0.50 1.15 1.01

Interest on subordinated note: and de be n tu res......................................................................... N/A N/A N/A N/A N/A 0.30

Salaries and employee benefits .................................................................................................... 6.59 6.77 6.66 6.64 6.74 6.85

Occupancy expense of bank premises, net ................................................................................

Furniture and equipment expense..................................................................................................

1.76 1.89 1.90 1.82 1.78 1.76

0.67 0.73 0.75 0.78 0.83 0.86

Provision for possible loan losses ............................................................................................... 0.15 0.30 0.95 0.74 1.03 0.54

Other operating e xp e n se s............................................................................................................... 4.99 5.25 5.51 5.66 5.33 5.08

Income before income taxes and net realized gains or lo sse s.................................................. 9.10 7.83 8.22 9.69 10.92 7.58

Applicable income and franchise taxes ......................................................................................... 2.49 2.39 2.73 2.97 2.92 2.17

Income before net realized gains or lo s s e s .................................................................................. 6.61 5.44 5.49 6.72 8.00 5.41

Net realized gains or losses, net .................................................................................................... -1 .7 2 -0 .3 6 0.59 0.50 -0 .4 2 0.01

Plus: Applicable income taxes ...................................................................................................... N/A N/A N/A N/A N/A -0 .0 1

Net realized gains or losses, gross ................................................................................................ -1 .7 2 -0 .3 6 0.59 0.50 -0 .4 2 0.02

Securities ......................................................................................................................................... -1 .7 2 -0 .3 6 0.59 0.50 -0 .4 2 -0 .1 0

Extraordinary ite m s .......................................................................................................................... N/A N/A N/A N/A N/A 0.12

Net incom e............................................................................................................................................ 4.89 5.08 6.08 7.22 7.58 5.42

INCOME OF INSURED BANKS 199

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Federal Reserve Bank of St. Louis
T ab le 121. RATIO INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1974-1979-CONTINUED

Income item 1974 1975 1976 1977 1978 1979

Amounts per $100 of total assets1

Operating incom e— to ta l............................................................................................ 6.87 7.06 7.29 7.43 7.75 8.24

Operating expense— to ta l................................................................................................... 6.25 6.50 6.69 6.71 6.90 7.61

Income before income taxes and net realized gains or lo s s e s ...................................................... 0.62 0.56 0.60 0.72 0.85 0.63

Applicable income and franchise ta x e s .............................................................................................. 0.17 0.17 0.20 0.22 0.23 0.18

Income before net realized gains or losses ..................................................................................... 0.45 0.39 0.40 0.50 0.62 0.45

Net realized gains or losses, g ro s s ..................................................................................................... -0 .1 2 -0 .0 3 0.04 0.04 -0 .0 3 0.00

Applicable income ta x e s ......................................................................................................................

Net realized gains or losses, n e t.........................................................................................................

0.00 0.00 0.00 0.00 0.00 0.00

-0 .1 2 -0 .0 3 0.04 0.04 -0 .0 3 0.00

Net in c o m e ............................................................................................................................................ 0.33 0.36 0.44 0.54 0.59 0.45

Special ratios1

Interest on U.S. Treasury, agency, and corporation obligations per $100

of U.S. Treasury, agency, and corporation o b lig a tio n s ............................................................. 6.83 7.23 7.50 7.51 7.72 8.20

Interest and dividends on all other securities per $100 of all other s e cu ritie s............................ 6.59 7.04 7.44 7.51 7.62 7.79

Interest and fees on real estate loans per $100 of real estate loans, n e t..................................... 6.95 7.22 7.44 7.62 7.94 8.28

Interest and fees on other loans per $100 of other loans, n e t ...................................................... 16.97 12.08 11.94 12.99 15.44 10.50

Interest and dividends on savings and time deposits per $100 

of savings and time deposits ......................................................................................................... 5.78 5.97 6.06 6.07 6.22 6.91

Net income per $100 of total surplus accounts 4.85 5.30 6.81 8.39 9.09 6.79

Number of banks (end of period) 320 329 329 323 325 324

^ e e note to Table 120.

Note: N/A - Data not available.

200 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table 122.

Table 123.

Table 124.

Table 125.

Table 126.

Table 127.

Table 128.

Table 129.

BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES:

FDIC INCOME, DISBURSEMENTS, AND LOSSES

Number and deposits of banks closed because of financial difficulties, 1934— 1979

Insured banks requiring disbursements by the Federal Deposit Insurance Corporation during

1979

Depositors, deposits, and disbursements in failed banks requiring disbursements by the

Federal Deposit Insurance Corporation, 1934— 1979

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

deposits, and State

Recoveries and losses by the Federal Deposit Insurance Corporation on principal disbursements for protection of depositors, 1934— 1979

Analysis of disbursements, recoveries, and losses in deposit insurance transactions, January

1, 1934— December 31, 1979

Income and expenses, Federal Deposit Insurance Corporation, by year, from beginning of

operations, September 11, 1933, to December 31, 1979

Protection of depositors of failed banks requiring disbursements by the Federal Deposit

Insurance Corporation, 1934— 1979

Insured deposits and the deposit insurance fund, 1934— 1979

BANKS CLOSED; FDIC INCOME. DISBURSEMENTS, AND LOSSES 201

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Federal Reserve Bank of St. Louis
Deposit insurance disbursements

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.

Under its section 13(c) authority, the Corporation has made disbursements to four operating banks. The amounts of these disbursements are 

included in table 126, but are not included in tables 124 and 125.

Noninsured bank failures

Statistics in this report on failures of noninsured banks are compiled from 

information obtained from State banking departments, field supervisory 

officials, and other sources. The Corporation received no reports of 

noninsured bank closures due to financial difficulties in 1979.

For detailed data regarding noninsured banks that suspended in the years 

1934-1962, see the Annual Report for 1963, pp. 27-41. For 1963-1979, see 

table 122 of 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, 1979.

202 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 122. NUMBER AND DEPOSITS OF BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES, 1934-1979

Year

Number Deposits (in thousands of dollars)

Total

Noninsured1

Insured

Total

Noninsured1

Insured

Total

Without 

disbursements 

by FDIC2

With 

disbursements 

by FDIC3

Total

Without 

disbursements 

by FDIC2

With 

disbursements 

by FDIC3

Total............................. 692 136 556 8 548 6,081,926 143,500 5,938,426 41,147 5,897,279

1934 ............................. 61 52 9 9 37,332 35,364 1,968 1,968

1935 ............................. 32 6 26 25 13,988 583 13,405 "85 13,320

1936 ............................. 72 3 69 69 28,100 592 27,508 27,508

1937 ............................. 84 7 77 75 34,205 528 33,677 328 33,349

1938 ............................. 81 7 74 74 60,722 1,038 59,684 59,684

1939 ............................. 72 12 60 60 160,211 2,439 157,772 157,772

1940 ............................. 48 5 43 43 142,788 358 142,430 142,430

194 1 ............................. 17 2 15 15 29,796 79 29,717 29,717

1942 ............................. 23 3 20 20 19,540 355 19,185 19,185

1943 ............................. 5 5 5 12,525 12,525 12,525

1944 ............................. 2 2 2 1,915 1,915 1,915

1945 ............................. 1 1 1 5,695 5,695 5,695

1946 ............................. 2 1 1 1 494 '147 347 347

1947 ............................. 6 1 5 5 7,207 167 7,040 7,040

1948 ............................. 3 3 3 10,674 10,674 10,674

1949 ............................. 9 ‘ ' 4 5 4 9,217 2; 552 6,665 1; 190 5,475

1950 ............................. 5 1 4 4 5,555 42 5,513 5,513

195 1 ............................. 5 3 2 2 6,464 3,056 3,408 3,408

1952 ............................. 4 1 3 3 3,313 143 3,170 3,170

1953 ............................. 5 1 4 2 45,101 390 44,711 26^449 18,262

1954 ............................. 4 2 2 2 2,948 1,950 998 998

1955 ............................. 5 . .. . 5 5 11,953 11,953 11,953

1956 ............................. 3 2 2 11,690 360 11,330 11,330

1957 ............................. 3 1 2 1 12,502 1,255 11,247 10,084 1,163

1958 ............................. 9 5 4 4 10,413 2,173 8,240 8,240

1959 ............................. 3 .... 3 3 2,593 2,593 2,593

1960 ............................. 2 1 1 7,965 1,035 6,930 6,930

19 6 1 ............................. 9 4 5 5 10,611 1,675 8,936 8,936

1962 ............................. 3 2 1 4,231 1,220 3,011 3; o il

1963 ............................. 2 2

• • 2

23,444 23,444 23^444

1964 ............................. 8 ' ‘ i 7 7 23,867 '429 23,438 23,438

1965 ............................. 9 4 5 5 45,256 1,395 43,861 43,861

1966 ............................. 8 1 7 7 106,171 2,648 103,523 103,523

1967 ............................. 4 4 4 10,878 10,878 10,878

1968 ............................. 3 3 3 22,524 22,524 22,524

1969 ............................. 9 9 9 40,134 40,134 40,134

1970 ............................. 8

■ • -j4 7 7 55,244 '4234 54,821 54,821

1 971............................. 6 6 6 132,152 132,152 132,152

1972 ............................. 3 " 2 1 1 99,784 79,304 20,480 20,480

1973 ............................. 6 6 6 971,296 971,296 971,296

1974 ............................. 4 4 4 1,575,832 1,575,832 1,575,832

1975 ............................. 14 ' ■ i 4 13 13 340,5744 1;bdo4 339,574 339,574

1976 ............................. 17 1 16 16 865,659 800 864,859 864,859

1977 ............................. 6 6 6 205,208 205,208 205,208

1978 ............................. 7 7 7 854,154 854,154 854,154

1979 ............................. 10 10 10 110,696 110,696 110,696

For information regarding each of these banks, see table 22 in the 1963 Annual Report (1963 and prior years), and explanatory notes to 

tables regarding banks closed because of financial difficulties in subsequent annual reports. 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 seven banks.

^For information regarding these cases, see table 23 of the Annual Report for 1963.

For information regarding each bank, see the Annual Report for 1958, pp. 4 8-83 and pp. 98-127, and tables regarding deposit 

.insurance disbursements in subsequent annual reports. Deposits are adjusted as of December 31, 1979.

Revised.

BANKS CLOSED; FDIC INCOME, DISBURSEMENTS, AND LOSSES 2 0 3

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 123. INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1979

Case

Number Name and location

Class 

of bank

Number of 

depositors or 

accounts1

Date of closing or 

deposit assumption

First payment to 

depositors or 

disbursements by FDIC

FDIC , 

disbursements

Receiver or liquidating agent 

or assuming bank

Deposit

payoff

311 Village Bank 

Pueblo West, Colorado

M 1,394 January 26, 1979 January 29, 1979 $ 3,673,992 Federal Deposit Insurance Corp.

312 Bank of Enville 

Enville, Tennessee

NM 949 June 16,1979 June 19, 1979 2,415,657 Federal Deposit Insurance Corp.

313 The Farmers State Bank 

Protection, Kansas

NM 1,206 September 21, 1979 September 24, 1979 3,812,168 Federal Deposit Insurance Corp.

Deposit

assumption

245 Toney Brothers Bank 

Doerun, Georgia

NM 1,470 January 5, 1979 2,763,931 American Banking Company 

Moultrie, Georgia

246 Southern National Bank 

Birmingham, Alabama

N 3,611 June 14, 1979 16,954,189 Exchange National Bank of 

Birmingnam, Birmingham, Alabama

247 The Guaranty Bank & Trust 

Company, Chicago, Illinois

NM 5,270 July 14, 1979 7,103,216 Independence Bank of Chicago 

Chicago, Illinois

248 Gateway National Bank of 

Chicago, Chicago, Illinois

N 3,700 July 14, 1979 15,709,045 Independence Bank of Chicago 

Chicago, Illinois

249 Fidelity Bank 

Utica, Mississippi

NM 11,911 September 28, 1979 20,662,173 Bank of Jackson, N.A. 

Jackson, Mississippi

250 American National Bank 

Houston, Texas

N 5,100 October 12, 1979 1,881,904 American Bank 

Houston, Texas

251 Livingston State Bank 

Livingston, New Jersey

NM 7,226 October 12, 1979 5,412,496 Fidelity Union Trust Company 

Newark, New Jersey

Assets1 Liabilities and capital accounts

Case

number

Cash and 

due from 

banks

U.S. Government 

obligations

Other

securities

Loans, 

discounts, and 

overdrafts

Banking house, 

furniture, and 

fixtures

Other 

real estate

Other

assets Total Deposits

Other

liabilities

Capital

stock

Other capital 

stock

Deposit

payoff

311

312

313

$ 124,835 

252,773 

411,928

$ 1,563,260 

696,673 

820,688

$ 100,000 

115,400 

104,935

$ 2,417,586 

2,370,970 

2,784,062

$ 336,919 

31,864 

212,951

$240,173

254J22

$ 276,646 

536 

449,083

$ 5,059,419 

3,468,216 

5,037,769

$ 4,862,244 

3,139,078 

4,685,955

$ 104,317 

57,467 

46,099

$ 248,380 

157,510 

225,000

$ (155,522) 

114,161 

80,715

Deposit

assumption

245

246

247

248

249

250

251

647,169

2,396,093

570,586

800,129

1,682,440

3,151,735

1,091,879

455,364

2,133,472

1,605,871

12,284,259

3,200,785

2,173,135

1,225,570

907,439

3,236,735

1,279,356

1,453,326

1,246,976

231,605

5,000

3,662,246

21,319,834

4,038,903

1,722,914

24,305,501

4,838,525

9,249,679

140,713

1,434,119

148,523

382,742

1,272,332

101,798

870,404

33,500

738,259

67540

136,075

50,000

23,033

1,327,048

233,093

283,350

973,665

112,403

238,360

5,869,464

32,585,560

7,876,332

16,933,260

32,817,774

10,659,201

12,680,892

5,790,622

24,031,970

7,415,842

9,229,970

30,223,164

10,353,000

11,020,610

236,488

7,181,957

322,608

7,718,431

494,911

318,140

1,176,919

253,900

2.115.000

742.500

1.458.000

424.500 

630,808 

910,000

(411,546) 

743,367 

604,618 

(1,473,141) 

1,675,199 

(642,747) 

426,637

1 Figures as determined by FDIC Agents after adjustments of books of the bank immediately following its closing, 

in clu d e s disbursements made to December 31, 1979, plus additional disbursements estimated to be required in these cases.

204 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
T a b le 124. D E P O S I T O R S , D E P O S IT S , A N D D I S B U R S E M E N T S IN F A IL E D B A N K S R E Q U I R IN G D I S B U R S E M E N T S B Y T H E 

F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N , 1 9 3 4 -1 9 7 9 

BANKS GROUPED BY C LASS OF BANK, YEAR OF DEPOSIT PAYOFF 

OR DEPOSIT ASSU M PTIO N, AM O UNT OF DEPOSITS, AND STATE

Classification

Number of banks

Payoff

cases

Assumption

cases

Number of depositors1

Total Payoff

cases

Assumption

cases

Deposits1 

(in thousands of dollars)

Total Payoff

cases

Assumption

cases

Disbursements by FDIC1 

(in thousands of dollars)

Principal disbursements

Total Payoff

cases3

Assumptio n

cases

Advances and 

expenses2

Payoff

cases5

Assumption

cases

All banks .....................

Class of bank

National ..................

State member F.R.S. 

Nonmember F.R.S. .

Year7

1934 

1935 

1936 

1937 

1938 

1939 

1940 

1941 

1942 

1943 

1944 

1945 

1946 

1947 

1948 

1949 

1950 

1951 

1952 

1953 

1954 

1955 

1956 

1957 

1958 

1959 

1960 

558

104

33

421

9

25

69

75

74

60

43

15

20

5

2

1

1

5

3

4

4 

2

3 

2 

2

5 

2

1

4 

3 

1

307

3612

259

251

21

162

1

27 

25 

24

28 

24

7

14

1

1

1

1

5

3

4 

4 

2 

3 

2 

2 

1 

1

3,806,902

1,551,371

4 3 0 ,8 8 5

1,8 2 4,6 4 6

15,767

44,655

89,018

130,387

203,961

392,718

256,361

73,005

60,688

27,371

5,487

12,483

1,383

10,637

18,540

5,671

6,366

5,276

6,752

24,469

1,811

17,790

15,197

2,338

9,587

3,073

11,171

6 27,286

108,815

91,650

426,821

15,767

32,331

43,225

74,148

44,288

90,169

20,667

38,594

5,717

16,917

899

8,080

5,465

2,338

4,380

3,073

11,171

3 ,1 7 9 ,6 16

1,442,556

3 3 9 ,3 3 5

1 ,3 9 7,8 2 5

12,324

45,793

56,239

159,673

302,549

235,694

34,411

54,971

10,454

4,588

12,483

1,383

10,637

18,540

5,671

6,366

5,276

6,752

24,469

1,811

9,710

9,732

5,207

6 ,0 0 7 ,9 7 5

3,305,731

4 4 7 ,8 6 7

2 ,2 5 4 ,3 7 7

1,968

13,320

27,508

33,349

59,684

157,772

142,430

29,717

19,185

12,525

1,915

5,695

347

7,040

10,674

5,475

5,513

3,408

3,170

18,262

998

11,953

11,330

1,163

8,240

2,593

6,930

4 82 ,1 6 4

113,779

44,023

324,362

1,968

9,091

11,241

14,960

10,296

32,738

5,657

14.730

1,816

6,637

456

6,503

4,702

1,163

4,156

2,593

6,930

5,525,811

3,191,952

4 0 3 ,8 4 4

1 ,9 3 0 ,0 1 5

4,229

16,267

18,389

49,388

125,034

136,773

14,987

17,369

5,888

1,459

5,695

347

7,040

10,674

5,475

5,513

3,408

3.170

18,262

998

5,450

6,628

4,084

4 ,7 9 0 ,0 4 8 8

3,120,632

340,142

1,329,274

941

8,891

14,460

19,481

30,479

67,770

74,134

23,880

10,825

7,172

1,503

1,768

265

1,724

2,990

2,552

3,986

1,885

1,369

5,017

913

6,784

3,458

1,031

3,026

1,835

4,765

335,800

65,058

34,248

236,494

941

6,026

7,735

12,365

9,092

26,196

4,895

12,278

1,612

5,500

404

4,438

2.795 

1,031

2.796 

1,835 

4,765

4 ,4 5 4,2 4 8

3,055,574

305,894

1,092,780

2,865

6,725

7,116

21,387

41,574

69,239

11,602

9,213

1,672

1,099

1,768

265

1,724

2,990

2,552

3,986

1,885

1,369

5,017

913

2,346

663

' ' 230

9 ,634

3,051

1,316

5,267

43

108

67

103

93

162

89

50

38

53

9

106

87

20

38

51

82

237,033

125,425

24,579

87,029

272

934

905

4,902

17,603

17,237

1,479

1,076

72

37

96

11

393

200

166

524

127

195

428

145

665

51

' ' 31

BANKS CLOSED; FDIC INCOME, DISBURSEMENTS, AND LOSSES 205

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Federal Reserve Bank of St. Louis
T a b le 124. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN FAILED BANKS REQUIRING DISBURSEMENTS BY THE 

FEDERAL DEPOSIT INSURANCE CORPORATION, 1 9 3 4 -1 9 7 9 -CONTINUED 

BANKS GROUPED BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF 

OR DEPOSIT ASSUMPTION, AMOUNT OF DEPOSITS, AND STATE

Classification

Number of banks Number of depositors1

Deposits1 

(in thousands of dollars)

Disbursements by FDIC1 

(in thousands of dollars)

Total Payoff

cases

Assum ption

cases

Total Payoff

cases

Assum ption

cases

Total Payoff

cases

Assum ption

cases

Principal disbursements

Advances and 

expenses2

Total Payoff

cases3

Assumpttion

cases

Payoff

casess

Assumption

cases

1961 ............................... 5 5 8,301 8,301 8,936 8 936 6 201 6 201 154

1963 ........................................ 2 2 36,433 36,433 23 444 23 444 19 230 19,230 349

1964 ........................................ 7 7 19 934 19,934 23,438 23,438 13,744 13,744 599

1965 .............................................. 5 3 2 15,817 14,363 1,454 43,861 42,889 972 11,431 10,958 473 640 123

1966 .............................................. 7 1 6 95,424 1,012 94,412 103,523 774 102,749 8,732 735 7,997 35 1,612

1967 ........................................ 4 4 4,729 4,729 10,878 10,878 8,120 8,120 242

1968 .. ............. 3 ' 3 12 850 12,850 22,524 22,524 5,586 5,586 1,114

1969 .............................................. 9 ' 4 5 27,374 6,544 20,830 40,134 9,012 31,122 37,619 7,599 30,020 301 4,424

1970 .............................................. 7 4 3 31,433 20,403 11,030 54,821 33,489 21,332 49,185 29,181 20,004 696 1,897

1971 .............................................. 6 5 1 71,950 31,850 40,100 132,152 74,605 57,547 162,165 53,790 108,375 799 11,239

1972 ........................................ 1 1 23 655 23 655 20,480 20,480 16,275 16,275 383

1973 .............................................. 6 3 ' 3 349,699 8,382 341,317 971,296 25,795 945,501 432,155. 16,802 415,353 1,426 1,070

1974 .............................................. 4 4 704 283 704 283 1,575,832 1,575,832 2,260,179 2,260,179 94,726

1975 .............................................. 13 ' 3 10 110,367 21,925 88,442 339,574 39,902 299,672 303,113 25,992 277,121 1,366 22,611

1976 .............................................. 16 3 13 340,731 8,246 332,485 864,859 18,859 846,000 553,590 11,482 542,108 1,217 27,929

1977 ............... 6 6 95 548 24 95 524 205,208 108 205,100 21,809 21,809 2,510

1978 .............................................. 7 ' '1 6 364,384 516 363,868 854,154 1,286 852,868 498,194 818 497,376 46 18,864

1979 .............................................. 10 3 7 42,028 3,740 38,288 110,696 12,631 98,065 79,816 10,169 69,647 182 1,363

Banks with deposits of:

Less than $100,000 .................... 107 83 24 38,347 29,695 8,652 6,418 4,947 1,471 5,000 4,309 691 88 154

$100,000 to $250,000 ............... 109 86 23 83,370 65,512 17,858 17,759 13,920 3,839 12,906 11,554 1,352 209 173

$250,000 to $500,000 ............... 62 37 25 92,179 57,287 34,892 22,315 12,921 9,394 15,615 10,549 5,066 164 611

$500,000 to $1,000,000 72 36 36 160,388 74,296 86,092 54,424 26,820 27,604 36,057 20,962 15,095 445 2,352

$1,000,000 to $2,0(to,000 59 22 37 211,353 70,847 140,506 79,547 29,173 50,374 46,466 22,886 23,580 748 4,037

$2,000,000 to $5,000,000 61 25 36 306,380 92,842 213,538 203,302 83,236 120,066 124,866 62,221 62,645 1,378 9,925

$5,000,000 to $10L000L000 . . . . 37 7 30 305,070 50,445 254,625 253,565 55,870 197,695 153,124 37,964 115,160 958 13,799

$1(),00(),000 to $2^,006,000 • • • 27 9 18 391,332 146,478 244,854 430,032 148,199 281,833 263,078 108,634 154,444 2,609 15,705

$25,000,000 to $ 5 0 ,0 0 0 ,0 0 0 ... 8 1 7 320,548 12,481 308,067 287,808 40,176 247,632 139,287 9,700 129,587 581 28,356

$50 000L000 to $100,000,000 .. 6 1 5 244,265 27,403 216,862 525,377 66,902 458,475 344,322 _ 47,021 297,301 523 25,572

$100 000 000 to $500 000 000 7 7 394 670 394 670 1,142,879 1,142,879 711,3 10 9 711,310 896 45,566

$500’0 00 ’000 to $1,000,000,000 2 2 629 000 629’ 000 1,539,566 1,539,566 751,018 751,018 1,035 7,268

$1 otio 0(50 000 or more 1 1 630,000 630,000 1,444,982 1,444,982 2,186,997s 2,186,997 83,513

State

A la b a m a ....................................... 8 3 5 19,660 2,572 17,088 45,897 5,270 40,627 31,663 3,384 28,279 140 1,374

Arizona .......................... 1 1 2,692 2,692 5,044 5,044 5,082 5,082 464

Arkansas ....................................... 8 "6 2 6,350 4,541 1,809 4,836 1,942 2,894 3,408 1,576 1,832 43 325

California ..................................... 6 3 3 390,819 17,890 372,929 1,032,658 46,220 986,438 463,4379 12,946 450,553 1,711 4,275

C o lo ra d o ....................................... 9 5 4 20,396 7,626 12,770 29,712 11,367 18,345 17,622 8,307 9,315 383 2,618

206 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
C onnecticut................................... 3 2 1 8,839 5,379 3,460 4,326 1,526 2,800 3,375 1,242 2,133 8 644

F lo rid a ............................................ 5 2 3 14,082 1,725 12,357 17,665 2,668 14,997 11,171 2,139 9,032 65 698

G e o rg ia .......................................... 3 8 5 33,912 8,797 25,115 59,772 1,870 57,902 39,640 1,551 38,089 33 3,131

Idaho ............................................ 2 2 2 451 2 451 1,894 1,894 1,493 1,493 29

Illin o is ............................................ 27 10 17 169,925 44,383 125,542 350,921 28,972 321,949 236,756 23,924 212,832 513 14,935

In d ia n a .......................................... 20 15 5 30,006 12,549 17,457 13,595 3,933 9,662 6,197 3,096 3,101 39 384

Io w a .............................................. 11 5 6 25,206 5,736 19,470 29,964 8,535 21,429 17,793 6,469 11,324 149 792

Kansas .......................................... 12 7 5 9,277 5,036 4,241 12,337 9,030 3,307 9,725 7,654 2,071 106 312

Kentucky ........................................ 26 20 6 40,313 19,352 20,961 16,072 5,768 10,304 12,519 5,041 7,478 157 640

Louisiana ..................................... 6 4 2 79,117 8,999 70,118 176,274 9,735 166,539 141,916 4,937 136,979 149 5,172

M a in e ............................................ 1 1 9 710 9 710 5,450 5 450 2 346 2 346 665

M aryland........................................ 5 2 3 22,567 6,643 15,’924 4,566 828 3,738 3|109 735 2*374 9 371

M a ssa ch u se tts............................. 5 1 4 42,279 23,655 18,624 38,696 20,480 18,216 27,257 16,275 10,982 382 2,259

M ich ig a n ........................................ 14 5 9 172,607 10,452 162,155 194,399 13,477 180,922 142,592 12,242 130,350 203 14,245

M in ne so ta ..................................... 5 5 2,650 2 650 818 818 640 640 17

M is s is s ip p i................................... 5 3 2 26,262 1,651 24,611 45,909 334 45,575 33,252 257 32,995 5 783

M is s o u r i........................................ 52 38 14 55,554 37,977 17,577 29,155 18,169 10,986 21,492 14,028 7,464 339 1,187

M o n ta n a ........................................ 5 3 2 1,500 849 651 1,095 215 880 639 186 453 6 21

N eb raska........................................ 8 8 7,773 7,773 11 644 11,644 8 116 8,116 151

New Hampshire .......................... 1 1 1,780 1,780 ’296 296 117 117 8

New J e rs e y ................................... 43 13 30 571,146 113,695 457,451 261,401 49,119 212,282 127,205 39,876 87,329 519 23,530

New York ..................................... 28 3 25 925,621 28,440 897,181 1,755,500 13,286 1,742,214 2,414,6218 10,836 2,403,785 928 94,360

North Carolina ............................. 7 2 5 10,408 3,677 6,731 3,266 1,421 1,845 2,387 1,156 1,231 23 179

North Dakota ............................... 29 18 11 14,103 6,760 7,343 3,830 1,552 2,278 2,656 1,397 1,259 24 203

Ohio .............................................. 5 2 3 21,251 7,585 13,666 102,838 2,345 100,493 90,073 1,610 88,463 7 5,198

O k la h o m a ..................................... 13 8 5 28,672 20,149 8,523 20,720 11,053 9,667 11,665 7,936 3,729 178 885

Oregon .......................................... 2 1 1 3,439 1,230 2,209 2,670 1,368 1,302 1,948 986 962 11 81

Pennsylvania ................................. 31 8 23 182,590 43,828 138,762 96,907 14,340 82,567 67,485 10,133 57,352 75 10,971

South Carolina ............................. 3 1 2 68,080 403 67,677 113,553 136 113,417 60,650 136 60,514 9,804

South Dakota ............................... 23 22 1 12,515 11,412 1,103 2,988 2,862 126 2,411 2,388 23 26 9

Tennessee ...................................... 14 9 5 133,317 10,952 122,365 341,450 4,836 336,614 130,437 3,585 126,846 92 10 884

Texas ............................................ 47 33 14. 131,109 80,986 50,123 220,483 141,922 78,561 139,615 97,131 42,484 1,796 4 651

Utah ............... >.............................. 1 1 3,254 3 254 5,992 5 992 3 538 3 538 300

V e rm o n t........................................ 3 "2 1 11,057 8,687 2,370 3,725 3,375 ’350 3*445 3,259 ’ 186 21 22

V irg in ia .......................................... 9 4 5 35,715 12,638 23,077 17,779 7,652 10,127 8,263 3,867 4,396 305 505

Washington ................................. 1 1 4,179 4,179 1,538 1,538 935 935 512

West Virginia ............................... 3 ' 3 8,346 8,346 2 006 2 006 1 458 1 458 11

W is co n sin ...................................... 33 20 '13 62,247 18,739 43,508 112,627 5,966 106,661 117’ 992 5! 096 112,896 54 11,765

Wyoming ...................................... 1 1 3,212 3,212 2,033 2,033 202 202 19

Other areas

Virgin Is la n d s ............................... 1 1 11,073 11,073 14,229 14,229 8 712 8,712 927

Puerto R ic o ................................... 3 " 3 369,840 369,840 789,442 789,442 352’,9359 352,935 7,851

'Adjusted to December 31, 1979. In assumption cases, number of depositors refers to number of deposit accounts.

Excludes $1,863 thousand of nonrecoverable insurance expenses in cases that were resolved without payment of claim s or a 

disbursem ent to facilitate assumption of deposits by another insured bank and other expenses of field liquidation employees not 

, chargeable to liquidation activities.

Includes estimated additional disbursem ents in active cases.

Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.

^These disbursem ents are not recoverable by the Corporation; they consist almost wholly of field payoff expenses.

Includes advances to protect assets and liquidation expenses of $222,005 thousand, all of which have been fully recovered by the 

C o rp o ratio n , and $15,029 thousand of nonrecoverable expenses.

No cases in 1962 required disbursem ents. Disbursement totals for each year relate to cases occurring during that year, including 

„ disbursem ents made in subsequent years.

“ Includes disbursem ents by liquidators in field ($1.5 billion).

In 1977 the assets of Banco Econom ias were purchased outright by the Corporation. Disbursements in the case are included in table 126 

under “ Other disbursem ents” and are not included in this table.

Note: Due to rounding differences, com ponents may not add to totals.

BANKS CLOSED; FDIC INCOME, DISBURSEMENTS, AND LOSSES 207

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Federal Reserve Bank of St. Louis
Table 125. RECOVERIES AND LOSSES BY THE FEDERAL DEPOSIT INSURANCE CORPORATION ON PRINCIPAL 

DISBURSEMENTS FOR PROTECTION OF DEPOSITORS, 1 9 3 4 -7 9 

(Amounts in thousands of dollars)

Liquidation All cases Deposit payoff cases Deposit assumption cases

status and year 

of deposit payoff 

or deposit 

assumption

Number

of

banks

Principal

disbursements

Recoveries 

to Dec. 31, 

1979

Estimated

additional

recoveries Losses1

Number

of

banks

Principal

disbursements2

Recoveries 

to Dec. 31, 

1979

Estimated

additional

recoveries Losses1

Number

of

banks

Principal 

disbursements 3

Recoveries 

to Dec. 31, 

1979

Estimated

additional

recoveries Losses1

T o ta l............................... 558 4,790,048 3,848,583 670,270 271,195 307 335,800 284,557 15,678 35,565 251 4,454,248 3,564,026 554,592 235,630

Status

A c tiv e ............................. 80

478

4,383,917

406,131

3,474,524

374,059

670,270 239,123

32,072

26

281

183,846

151,954

151,368

133,189

15,678 16,800

18,765

54

197

4,200,071

254,177

3,323,156

240,870

654,592 222,323

13,307

Year4

1934 9 941 

8,891 

14,460 

19,481 

30,479 

67 770

734

6,206

12,127

15,808

28,055

60,618

70,338

23,290

10,136

7,048

1,462

1,768

265

1,666

2,349

2,183

2,601

1,885

577

207 9 941 734 207

1935 25

69

75

74

3 2,682

2,333

3,672

2,425

7,152

3,796

591

24 6,026

7,735

12,365

9,092

26,196

4,274 1,752 ' ' i 2,865 1,932 3 930

1936 42 6,397

9,718

7,908

20,399

1,338 27 6,725 5,730 995

1937 50 2,647

1,184

25 7,116 6,090 1,025

1938 50 24 21,387 20,147 1,241

1939 60 32 5,797 28 41,574 40,219 1,355

1940 43 74,134 

23,880 

10,825 

7 172

19 4,895

12,278

1,612

5,500

404

4,313

12,065

1,320

582 24 69,239 66,025 3,214

1941 15

20

8 213 7 11,602 11,225 378

1942 . ......... 688 6 292 14 9,213 8.816 396

1943 5 123 4 5,376

363

123 1 1,672 1,672

1944 2 1,503

1,768

265

1,724

2,990

2,552

3,986

1,885

1,369

5,017

913

40 1 40 1 1,099

1,768

1,099

1945 1 1 1,768

1946 1 1 265 265

1947 5 1 ' '58 5 1,724 1,666 1 58

1948 3 641 3 2,990 2,349 641

1949 4 369 4 2,552 2,183 369

1950 4 1,385 4 3,986 2,601 1,385

1951 2 2 1,885 1,885

1952 3 '792 3 1,369 577 792

1953 2 5,017

654

2 5,017 5,017

1954 2 258 2 913 654 258

1955 5 6,784

3,458

1,031

3,026

6,554

3,245

1,031

2,998

1,738

4,765

4,699

18,792

12,080

7,339

8,241

7,016

5,575

37,524

48,479

161,328

10,630

212,200

2,025,127

236,859

387,281

13,007

348,689

28,597

230 ' ' 4 4,438

2,795

4,208

2,582

230 1 2,346 2,346

1956 2 213 1 213 1 663 663

1957 1 1 1,031

2,796

1,031 . . ..

1958 4 ' '28 3 2,768 28 230 230

1959 3 1,835 

4,765 

6,201 

19,230 

13,744 

11 431

97 3 1,835

4,765

6,201

19,230

13,744

10,958

1,738

4,765

4,699

97

1960 1 1

1961 5 11502 5 1,502

1963 

1964 

1965

2

7

438

42

128

2 18,792

12,080

7,013

438

Ii622

3,963

485

7

3

42 1,622

5 .128 3,817 2

473 326 146

1966 7 8 732 8 1 735 735 6 7,997 7,506 8 485

1967 

1968

4 8,120

5,586

37,619

49,185

162,165

16,275

432,155

2,260,179

303,113

553,590

21,809

498,194

79,816

42

1

1,062

11

4 8,120 7,016 42 1,062

3 ' ' 3 5,586 5,575 1 11

1969 

1970 

197 1 

1972

9

7

6

1

11

171

593

1,645

94,775

230,652

35,582

131,992

6,687

129,635

37,864

85

533

243

4,000

125,180

4,400

30,672

34,317

2,115

19,870

13,355

' ' 4

4

5 

1

7,599

29,181

53,790

16,275

16,802

7,505

28,705

52,956

10,630

16.771

9

171

591

1,645

31

85

305

243

4,000

5

3

1

30,020

20,004

108,375

30,019

19,774

108,372

2

2

228

1973 

1974

6

4

3 ' ' 3 

4

415,353

2,260,179

195,429

2,025,127

94,744

230,652

125,180

4,400

1975 

1976 

1977

13

16

6

' ' 3 

3

25,992

11,482

19,026

8,213

5,721

578

1,245

2,691

10

13

6

277,121

542,108

21,809

217,833

379,068

13,007

29,861

131,414

6,687

29,427

31,626

2,115

1978 

1979 

7

10

" i 

3

818

10,169

430

25

238

6,044

150

4,100

6

7

497,376

69,647

348,259

28,572

129,397

31,820

19,720

9,255

Includes estimated losses in active cases. Not adjusted for interest or allowable return, which was collected in some cases in which the 

9disbursement was fully recovered.

^Includes estimated additional disbursements in active cases.

Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.

No case in 1962 required disbursements.

Note: Due to rounding differences, components may not add to totals.

208 FEDERAL DEPOSIT INSURANCE CORPORATION

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Table 126. ANALYSIS OF DISBURSEMENTS, RECOVERIES, AND LOSSES IN DEPOSIT INSURANCE TRANSACTIONS,

JANUARY 1, 1934— December 31, 1979 

(In thousands)

Type of disbursement Disbursements Recoveries1

$5,219,134 $4,883,152

4,790,048 4,518,853

4,220,498 4,518,853

524,258

233,750 103,416

130,334

334,998 284,557

802 15,678

246,668 222,005

115,147 115,147

106,858 106,858

15,029 0

9,634 0

182,418 142,294

9,993 5,339

593

34,969 12,040

2,929

15,393 1,011

182

1,863 0

120,200 83,200

37,000

Losses

All disbursements— total2 ...................................................................................

Principal disbursements in deposit assumption and payoff cases— total

Loans and assets purchased in liquidations (251 deposit assumption cases): 

To December 31, 1979 .....................................................................................

Estimated additional .

Notes purchased to facilitate deposit assum ptions, mergers, or consolidations: 

To December 31, 1979 .........................................................................................

Estimated ad d itio n a l............................._

Deposits paid (307 deposit payoff cases):'

To December 31, 1979 ........................

Estimated ad d itio n a l...............................

Advances and expenses in deposit assumption and payoff cases— to ta l.

Expenses in liquidating assets:

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

Liquidation expenses

Insurance expenses4 

Field payoff ana other insurance expenses in 307 deposit payoff cases4

Other disbursements— total

Corporation purchases:

To facilitate termination of liquidations:

To December 31, 1979 .......................................

Estimated ad d itio n a l..............................................

Topurchase assets from operating insured banks:

To December 31, 1979 .......................................

Estimated ad d itio n a l..............................................

Other assets purchased outright:

To December 31, 1979 .......................................

Estimated a d d itio n a l..............................................

Unallocated insurance expenses4 ...............................

Assistance to operating insured banks:

To December 31, 19785 ..........................................

Estimated a d d itio n a l...................................................

$335,982

271.195

271.195

35,565

24,663

0

0

15,029

9,634

40,124

4,061

20,000

14,200

'i]8 6 3

Excludes amounts returned to closed bank equity-holders and $120.9 million of interest and allowable return received by the FDIC.

^Includes collections and disbursem ents by liquidators in the field ($1.5 billion).

^Includes estimated amounts for pending and unpaid claims in active cases.

^Not recoverable.

Excludes $32 million originally disbursed as assistance to Farmers Bank of the State of Delaware and subsequently applied to assets 

purchased from operating insured banks.

BANKS CLOSED; FDIC INCOME. DISBURSEMENTS. AND LOSSES 209

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Table 127. INCOME AND EXPENSES, FEDERAL DEPOSIT INSURANCE CORPORATION, BY YEAR, FROM BEGINNING OF OPERATIONS,

SEPTEMBER 11, 1933 TO DECEMBER 31, 1979 _*

(In millions) o

Year

Income Expenses and losses

Net income added to 

Total deposit insurance fund

Deposit insurance 

assessments1

Investment and 

other sources2 Total

Deposit insurance losses 

and expenses

Interest on 

capital stock3

Administrative and 

operating expenses

T o ta l............................... $11,356.5 $5,378.7 $5,977.8 $1,563.8 $342.8 $80.6 $1,140.4 $9,792.7

1979 ............................... 1,090.4 356.4 734.0 93.7. 13.1 106.8 996.7

1978 ............................... 952.1 367.0 585.1 148.95 45.6 103.3 803.2

1977 ............................... 837.8 319.4 518.4 113.6, 24.3 89.3 724.2

1976 ............................... 764.9 296.5 468.4 212.35 31.9 180.45 552.6

1975 ............................... 689.3 278.9 410.4 97.5 29.8 67.7 591.8

1974 ............................... 668.1 302.0 366.1 159.2 100.0 59.2 508.9

1973 ............................... 561.0 246.0 315.0 108.2 53.8 54.4 452.8

1972 ............................... 467.0 188.5 278.5 59.7 10.1 49.6 407.3

1 9 7 1 ............................... 415.3 175.8 239.5 60.3 13.4 46.9 355.0

1970 ............................... 382.7 159.3 223.4 46.0 3.8 42.2 336.7

1969 ............................... 335.8 144.0 191.8 34.5 1.0 33.5 301.3

1968 ............................... 295.0 132.4 162.6 29.1 0.1 29.0 265.9

1967 ............................... 263.0 120.7 142.3 27.3 2.9 24.4 235.7

1966 ............................... 241.0 111.7 129.3 19.9 0.1 19.8 221.1

1965 ............................... 214.6 102.2 112.4 22.9 5.2 17.7 191.7

1964 ............................... 197.1 93.0 104.1 18.4 2.9 15.5 178.7

1963 ............................... 181.9 84.2 97.7 15.1 0.7 14.4 166.8

1962 ............................... 161.1 76.5 84.6 13.8 0.1 13.7 147.3

1 9 6 1 ............................... 147.3 73.4 73.9 14.8 1.6 13.2 132.5

1960 ............................... 144.6 79.6 65.0 12.5 0.1 12.4 132.1

1959 ............................... 136.5 78.6 57.9 12.1 0.2 11.9 124.4

1958 ............................... 126.8 73.8 53.0 11.6 11.6 115.2

1957 ............................... 117.3 69.1 48.2 9.7 0.'1 9.6 107.6

1956 ............................... 111.9 68.2 43.7 9.4 0.3 9.1 102.5

1955 ............................... 105.7 66.1 39.6 9.0 0.3 8.7 96.7

1954 ............................... 99.7 62.4 37.3 7.8 0.1 7.7 91.9

1953 ............................... 94.2 60.2 34.0 7.3 0.1 7.2 86.9

1952 ............................... 88.6 57.3 31.3 7.8 0.8 7.0 80.8

1 9 5 1 ............................... 83.5 54.3 29.2 6.6 6.6 76.9

1950 ............................... 84.8 54.2 30.6 7.8 i .4 6.4 77.0

1949 ............................... 151.1 122.7 28.4 6.4 0.3 6.1 144.7

1948 ............................... 145.6 119.3 26.3 7.0 0.7 0.6 5.7 138.6

1947 ............................... 157.5 114.4 43.1 9.9 0.1 4.8 5.0 147.6

1946 ............................... 130.7 107.0 23.7 10.0 0.1 5.8 4.1 120.7

1945 ............................... 121.0 93.7 27.3 9.4 0.1 5.8 3.5 111.6

1944 ............................... 99.3 80.9 18.4 9.3 0.1 5.8 3.4 90.0

1943 ............................... 86.6 70.0 16.6 9.8 0.2 5.8 3.8 76.8

1942 ............................... 69.1 56.5 12.6 10.1 0.5 5.8 3.8 59.0

1 9 4 1 ............................... 62.0 51.4 10.6 10.1 0.6 5.8 3.7 51.9

1940 ............................... 55.9 46.2 9.7 12.9 3.5 5.8 3.6 43.0

1939 ............................... 51.2 40.7 10.5 16.4 7.2 5.8 3.4 34.8

1938 ............................... 47.7 38.3 9.4 11.3 2.5 5.8 3.0 36.4

1937 ............................... 48.2 38.8 9.4 12.2 3.7 5.8 2.7 36.0

1936 ............................... 43.8 35.6 8.2 10.9 2.6 5.8 2.5 32.9

1935 ............................... 20.8 11.5 9.3 11.3 2.8 5.8 2.7 9.5

1933-34 ...................... 7.0 (4) 7.0 10.0 0.2 5.6 4.26 - 3 .0

1 For the period from 1950 to 1979, 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 amount to $5,817 million.

Includes $36 million of interest and allowable return received on funds advanced to receivership and deposit assumption cases and $85 

.m illion of interest on capital notes advanced to facilitate deposit assumption transactions and assistance to open banks.

Paid in 1950 and 1951 but allocated among years to which it applies. Initial capital of $289 million was retired by payments to the U.S. 

.Treasury in 1947 and 1948.

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.

^Includes net loss on sales of U.S. Government securities of $105.6 million in 1976 and $3.6 million in 1978.

Net after deducting the portion of expenses and losses charged to banks withdrawing from the temporary insurance funds on June 30, 

1934.

FEDERAL DEPOSIT INSURANCE CORPORATION

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Table 128. PROTECTION OF DEPOSITORS OF FAILED BANKS REQUIRING 

DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION

1934-1979

Item

All cases 

(558 banks)

Deposit payoff cases 

(307 banks)

Deposit assumption cases 

(251 banks)

Number or 

amount Percent

Number or 

amount Percent

Number or 

amount Percent

Number of depositors or accounts— total1 .................................................... 3,806,902 100.0 627,286 100.0 3,179,616 100.0

Full recovery received or a v a ila b le ............................................................. 3,799,366 99.8 619,750 98.8 3,179,616 100.0

From FD IC2 .................................................................................................. 3,751,691 98.5 572,0 75 3 91.2 3,179,616 100.0

From offset4 ................................................................................................ 41,168 1.1 41,168 6.6

From security or preference 5 .................................................................... 3,295 0.1 3,295 .5

From asset liquidation6 .............................................................................. 3,212 0.1 3,212 .5

Full recovery not received as of December 31,1979 .............................. 7,536 0.2 7,536 1.2

Terminated c a s e s .......................................................................................... 3,670 0.1 3,670 .6

Active c a s e s .................................................................................................. 3,866 0.1 3,866 .6

Amount of deposits (in thousands)— to ta l...................................................... 6,007,975 100.0 482,164 100.0 5,525,811 100.0

Paid or made available ................................................................................. 5,993,515 99.8 467,704 97.0 5,525,811 100.0

By FD IC2 ....................................................................................................... 5,862,249 97.6 336,4387 70.0 5,525,811 100.0

By offset8 ..................................................................................................... 23,809 .4 23,809 4.9

By security or preference9 ........................................................................ 56,671 .9 56,671 11.7

By asset liquidation1 0 ................................................................................. 50,786 .9 50,786 10.4

Not paid as of December 31,1979 ............................................................. 14,460 .2 14,460 3.0

Terminated c a se s .......................................................................................... 3,171 .0 3,171 .7

Active ca se s1 1 .............................................................................................. 11,289 .2 11,289 2.3

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

Through direct payments to depositors in deposit payoff cases; through assumption of deposits by other insured banks facilitated by 

FDIC disbursem ents of $4,454,248 thousand, in deposit assumption cases.

^Includes 60,913 depositors, in terminated cases, who failed to claim their insured deposits (see note 7).

Includes only depositors with claim s offset in full; most of these would have been fully protected by insurance in the absence of offsets.

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

The insured portions of these depositor claim s were paid by the Corporation.

Includes $516 thousand unclaimed insured deposits in terminated cases (see note 3).

“ Includes all amounts paid by offset.

Includes all secured and preferred claim s paid from asset liquidation; excludes secured and preferred claim s paid by the Corporation.

^Includes unclaimed deposits paid to authorized public custodians. nd

Includes $1,244 thousand representing deposits available, expected through offset, or expected from proceeds of liquidation. —1

BANKS CLOSED, FDIC INCOME, DISBURSEMENTS, AND LOSSES

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Table 129. IN S U R E D D E P O S IT S A N D T H E F D IC IN S U R A N C E F U N D , 1 9 3 4 - 1 9 7 9 

(In m illions)

Year (December 31) Insurance

coverage

Deposits in insured banks

Percentage of 

insured deposits

Deposit insurance 

fund

Ratio of deposit insurance fund to —

Total1 Insured1

Total

deposits

Insured

deposits

1979 ............................................... $40,000 $1,226,943 $808,555 65.9% $9,792.7 .80% 1.21%

1978 ............. 40,0007 1,145,835 760,706 66.4 8,796.0 .77 1.16

1977 ............................................... 4o!ooo6 1,050,435 692,533 65.9 7,992.8 .76 1.15

1976 ............. 40,000 941,923 628,263 66.7 7,268.8 .77 1.16

1975 ............................................... 40,000 875,985 569,101 65.0 6,716.0 .77 1.18

1974 ............................................... 40,000 833,277 520,309 62.5 6,124.2 .73 1.18

1973 ............................................... 20,000 766,509 465,600 60.7 5,615.3 .73 1.21

1972 ............................................... 20,000 697,480 419,756 60.2 5,158.7 .74 1.23

1 9 7 1 ............................................... 20,000 610,685 374,5684 61,34 4,739.9 .78 1.274

1970 ............................................... 20,000 545,198 349,581 64.1 4,379.6 .80 1.25

1969 20,000 495,858 313,085 63.1 4,051.1 .82 1.29

1968 15,000 491,513 296,701 60.2 3,749.2 .76 1.26

1967 15,000 448,709 261,149 58.2 3,485.5 .78 1.33

1966 ............................................... 15,000 401,096 234,150 58.4 3,252.0 .81 1.39

1965 ............................................... 10,000 377,400 209,690 55.6 3,036.3 .80 1.45

1964- .................... 10,000 348,9810 191,787 55.0 2,844.7 .82 1.48

1963 10,000 313,304^ 177,381 56.6, 2,667.9 .85 1.50

1962 10,000 297,5483 170,2104 57.24 2,502.0 .84 1.47

1961 10,000 281,304 160,3094 57.0 4 2,353.8 .84 1.474

1960 ............................................... 10,000 260,495 149,684 57.5 2,222.2 .85 1.48

1959 10,000 247,589 142,131 57.4 2,089.8 .84 1.47

1958 10,000 242,445 137,698 56.8 1,965.4 .81 1.43

1957 . . . .................... 10,000 225,507 127,055 56.3 1,850.5 .82 1.46

1956 . . . .................... 10,000 219,393 121,008 55.2 1,742.1 .79 1.44

1955 ............................................... 10,000 212,226 116,380 54.8 1,639.6 .77 1.41

1954 ............................................... 10,000 203,195 110,973 54.6 1,542.7 .76 1.39

1953 ............................................... 10,000 193,466 105,610 54.6 1,450.7 .75 1.37

1952 10,000 188,142 101,841 54.1 1,363.5 .72 1.34

1951 .................... 10,000 178,540 96,713 54.2 1,282.2 .72 1.33

1950 ............................................... 10,000 167,818 91,359 54.4 1,243.9 .74 1.36

1949 5,000 156,786 76,589 48.8 1,203.9 .77 1.57

1948 5,000 153,454 75,320 49.1 1,065.9 .69 1.42

1947 . . . .................... 5,000 154,096 76,254 49.5 1,006.1 .65 1.32

1946 5,000 148,458 73,759 49.7 1,058.5 .71 1.44

1945 ............................................... 5,000 157,174 67,021 42.4 929.2 .59 1.39

1944 ............................................... 5,000 134,662 56,398 41.9 804.3 .60 1.43

1943 ............................................... 5,000 111,650 48,440 43.4 703.1 .63 1.45

1942 ............................................... 5,000 89,869 32,837 36.5 616.9 .69 1.88

1941 ............................................... 5,000 71,209 28,249 39.7 553.5 .78 1.96

1940 ............................................... 5,000 65,288 26,638 40.8 496.0 .76 1.86

1939 ............................................... 5,000 57,485 24,650 42.9 452.7 .79 1.84

1938 ............................................... 5,000 50,791 23,121 45.5 420.5 .83 1.82

1937 ...................................... 5,000 48,228 22,557 46.8 383.1 .79 1.70

1936 ............................... 5,000 50,281 22,330 44.4 343.4 .68 1.54

1935 ...................................... 5,000 45,125 20,158 44.7 306.0 .68 1.52

1934 ............................................... 5,0005 40,060 18,075 45.1 291:7 .73 1.61

1 Deposits in foreign branches are omitted from totals because they are not insured. Insured deposits are estimated by applying to the 

deposits in the various types of accounts at the regular Call dates, the percentages insured as determined from special reports secured 

Ofrom insured banks.

2December 20, 1963.

3 December 28, 1962.

^Revised.

^Initial coverage was $2,500 from January 1 to June 30, 1934.

*$100,000 for time and savings deposits of in-state governmental units provided in 1974.

$100,000 for Individual Retirement accounts and Keogh accounts provided in 1978.

FEDERAL DEPOSIT INSURANCE CORPORATION

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INDEX 215

Absorptions:

Of insured banks requiring disbursements by FDIC. See Banks in financial difficulties.

Of operating banks, 1 9 7 9 ..................................................................................................7

Of operating banks approved by FDIC, 1 979 ............................................ 7, 63-1 28

Of operating banks denied by FDIC, 1979 .......................................................... 7, 68

Regulation o f ................................................................................................................ 15-16

Admission of banks to insurance: See also Applications from banks.

Applications for, 1 9 7 9 .................................................................................................... 7-8

Number of banks admitted, by class of bank, 1 9 7 9 ............................................ 1 40

American Bankers A s s o c ia tio n ................................................................................................ 27

American National Bank, Houston, Texas............................................................................. 17

Applications from banks................................................................................................................ 7

Areas outside continental United States, banks and branches located in:

Number, December 3 1 ,1 9 7 9 ............................................................................1 42,1 44

Assessments for deposit insurance ...............................................................................35,36

Assets and liabilities of FDIC...............................................................................................37-39

Assets, liabilities and capital of banks. See also deposits:

Commercial banks:

Foreign, of U.S. banks.................................................................. 1 59, 1 73, 1 74, 1 76

Grouped by insurance status, June 30, 1 979 and December 31,

1979 .....................................................................................................................161,164

Sources of data ........................................................................................................... 1 60

Insured commercial banks:

Assets and liabilities of insured commercial banks (Domestic and foreign

offices) U.S. and other areas December 31, 1979 ......................................... 176

Amounts, December call dates, 1 974-1 979 ...................................................... 1 70

Amounts, June 30, 1979 and December 31, 1979 by class of

b a n k .......................................................................................................................1 61,1 64

Major categories, average, 1 9 7 4 - 1 9 7 9 ............................................................... 189

Percentage distribution, by size of bank, 1979 ................................................. 1 83

Percentage of items, by size of bank, 1 9 7 9 ......................................................... 1 80

Insured mutual savings banks:

Amounts, December call dates, 1 974-1 979 ...................................................... 1 78

Major categories, average, 1 9 7 4 - 1 9 7 9 ............................................................... 197

Percentage of items, by size of bank, 1 9 7 9 ......................................................... 181

Methods of tabulating data ............................................................................... 1 59-1 60

Mutual savings banks:

Grouped by insurance status. June 30, 1 979 and December 31, 1 9 7 9 ...... 1 68

Sources of data ........................................................................................................... 187

Assets, purchase of, by FDIC from banks in financial difficulties................................... 16

Assumption of deposits of insured banks with financial aid of FDIC. See Banks in 

financial difficulties.

Attorney General of the United States, summary reports on ab so rp tio n s.............6 3-68

Audit of FDIC........................................................................................................................... 36-37

Automatic transfer of funds from savings to checking, survey and regulation .... 22, 29

Awards to FDIC personnel ........................................................................................................ 34

Bad debt reserves. See Valuation reserves.

Bank control, changes, regulation o f ....................................................................................8, 9

Bank holding companies, supervision of............................................................................. 4, 9

Bank of Enville, Tennessee........................................................................................................ 17

Bank security..................................................................................................................................26

Bank crimes in 1 9 7 9 ........................................................................................................ 26

Bank Protection Act of 1 968 ........................................................................................ 26

Fidelity and surety coverage for b a n k s ....................................................................... 27

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Bank supervision. See Supervision of banks; Examination of insured banks.

Banking offices, number of. See Number of banks and branches.

Banks in financial difficulties;

Insured banks requiring disbursements by FDIC:

Assets and liabilities o f ............................................................................................ 204

Deposit size o f ............................................................................................................ 205

Deposits protected, 1934-1979 ................................................. 14-16, 205, 21 1

Disbursements by FDIC, 1 934-1 979 ......................................... 14-16, 205, 208

Failures in 1 9 7 9 ..................................................................................................... 16-17

Loans made and assets purchased by FDIC...................................................14-16

Location by State, 1 934-1 979 ............................................................................ 205

Losses incurred by d e p o s ito rs ....................................................................... 15, 21 1

Losses incurred by F D IC ....................................................................... 15, 208, 209

Number of, 1 9 3 4 - 1 9 7 9 ....................................................................................20, 203

Number of deposit a c c o u n ts ....................................................................... 205, 21 1

Recoveries by FDIC on assets acquired 1 934-1 979 ............................ 208,209

Noninsured banks:

Number and deposits of commercial banks closed 1 934-1 9 7 9 ................ 203

Banks, number of. See Number of banks and branches.

Board of Directors of FDIC. See Federal Deposit Insurance Corporation.

Branches:

Establishment approved by FDIC, 1 979 .................................................................. 7-8

Number of. See Number of banks and branches.

Call reports. See Assets, liabilities, and capital of banks:

Capital adequacy.......................................................................................................................... 29

Capital of banks. See Assets, liabilities and capital of banks; Banks in financial 

difficulties; Income of insured commercial banks;

Examination of insured banks.

Cease and desist proceedings.......................................................... 10-1 1, 29, 4 9 -6 0

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:

Absorptions.................................................................................................. 63-128, 140

Income of insured commercial banks, 1 979 ...................................................... 1 92

Insured banks requiring disbursements by FDIC 1 934-1 979 ...................... 205

Number of banks and banking offices, 1 9 7 9 ............................................ 1 40, 1 44

Number of banks and a sse ts.................................................................................... 1 53

Classification of banks............................................................................................................. 139

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.

Community Reinvestment A c t .........................................................................4, 6, 19, 20, 21

Compliance examinations........................................................................................................ 4-6

Comptroller of the C u rre n cy.................................................................vii, 3, 4, 9, 1 0, 1 4, 30

Computer management system s............................................................................................. 30

Conference of State bank supervisors.................................................................................... 10

Consolidation. See Absorptions.

Consumer and banker education ............................................................................................22

Consumer complaints and inquiries, 1978 and 1 9 7 9 ...................................................... 21

Country Exposure Report.................................................................................................... 1 5, 25

Credit, bank. See Assets, liabilities, and capital of banks.

Demand deposits. See Assets, liabilities, and capital of banks; Deposits.

Deposit insurance:

Applications f o r ................................................................................................................ 7-8

History of deposit fund ............................................................................................. 34-35

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INDEX 217

Size o f d e p o s it f u n d ...........................................................................................................................3 5

Deposits. See also Assets, liabilities, and capital of banks:

Banks c lo s e d b e c a u s e o f fin a n c ia l d iffic u ltie s , 1 9 3 4 - 1 9 7 9 . . . . 1 4-1 7. 2 0 3 , 2 0 5 

C om m ercial banks:

By insurance status and type of bank, and type of account,

J u n e 3 0 , 1 9 7 9 ............................................................................................................................. 161

By insurance status and type of bank, and type of account,

D e c e m b e r 3 1 , 1 9 7 9 ................................................................................................................... 1 6 4

By S tate a n d asset size o f b a n k ............................................................................................ 1 5 4

Insured com m ercial banks:

A v e ra g e d e m a n d an d tim e d e p o s its , 1 9 7 4 - 1 9 7 9 ..................................................... 1 8 9

D e c e m b e r call dates, 1 9 7 4 - 1 9 7 9 .................................................................................... 1 7 0

Insured m utual savings banks:

A v e ra g e d e m a n d a nd tim e d e p o s its , 1 9 7 4 - 1 9 7 9 ..................................................... 1 9 7

D e c e m b e r call dates, 1 9 7 4 - 1 9 7 9 .................................................................................... 1 7 8

M u tu a l s a v in g s banks, by in s u ra n c e status, J u n e 3 0 , 1 9 7 9 , and

D e c e m b e r 3 1 , 1 9 7 9 ................................................................................................................... 1 6 8

Deposits insured by FDIC:

E stim a ted in s u re d d e p o s its , D e c e m b e r 3 1 , 1 9 3 4 - 1 9 7 9 ........................................ 2 1 2

M a x im u m per d e p o s ito r , c h a n g e s in ...................................................................................... 3 4

Deposits, num ber of insured com m ercial banks with given ratios of dem and to

to ta l d e p o s its ............................................................................................................................................... 1 8 3

Directors of FDIC. See Federal Deposit Insurance Corporation.

Disbursem ents. See Banks in financial difficulties.

D is in te r m e d ia tio n ........................................................................................................................................... 13

D iv id e d e x a m in a tio n p r o g r a m ............................................................................................................4, 2 4

Dividends:

To depositors in insured mutual savings banks. See Income of insured 

m utual savings banks.

To stockholders of insured com m ercial banks. See Income of Insured 

com m ercial banks.

Earnings of banks. See Incom e of insured com m ercial banks; Incom e of insured 

m utual savings banks.

Edge A c t ............................................................................................................................................................... 2 5

Electronic data processing:

E x a m in a tio n o f ......................................................................................................................................... 6

In te ra g e n c y A D P p o lic y s t a t e m e n t ............................................................................................... 7

In te ra g e n c y e x a m in a tio n m a n u a l...................................................................................................7

T ra in in g p r o g r a m fo r e x a m i n e r s .....................................................................................................6

E le c tr o n ic Fun d s T ra n s fe r A c t ............................................................................................................4, 2 9

Employees:

A w a r d s ...................................................................................................................................................... 3 4

F D I C .................................................................................................................................................... 3 3 - 3 4

In s u re d c o m m e r c ia l banks, n u m b e r and c o m p e n s a tio n , 1 9 7 4 - 1 9 7 9 ............. 1 8 9

In s u re d m u tu a l s a v in g s b anks, n u m b e r and c o m p e n s a t io n , 1 9 7 4 - 1 9 7 9 . . . . 1 9 7

E qual C re d it O p p o r t u n it y A c t ............................................................................................... 4, 6, 19, 2 2

Examination of insured banks:

By FDIC, 1 9 7 9 .................................................................................................................................... 3 - 6

D iv id e d e x a m in a tio n c o n c e p t ..........................................................................................................4

E x a m in e r p o s itio n s , a p p ro v e d vs f i l l e d ......................................................................................6

E x a m in e r t r a i n i n g ....................................................................................................................................6

Safety and soundness e xam inations ........................................................................................... 4

Expenses of banks. See Income of insured com m ercial banks; Income of insured 

mutual savings banks.

E xpenses of F D I C ......................................................................................................................... 3 5 - 3 6 , 2 1 0

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Failures. See Banks in financial difficulties.

Fair C re d it R e p o rtin g A c t ................................................................................................................................ 4

Fair D e b t C o lle c tio n P ra c tic e s A c t ............................................................................................................4

Fair H o u s in g L e n d i n g .........................................................................................................................4, 6, 19

F arm ers S tate Bank, P ro te c tio n , K ansas ........................................................................................... 17

Federal B a n k in g A g e n c y A u d it A c t ........................................................................................................ 3 7

Federal D e p o s it In s u ra n c e A c t .................................................................. 5 , 8 , 10, 1 2 , 2 6 , 2 8 , 31

Federal Deposit Insurance C orporation:

A c tio n s on a p p l ic a t i o n s ................................................................................................................. 7 -8

A s s e s s m e n ts on in s u re d b a n k s ............................................................................... 3 5 - 3 6 , 2 1 0

A u d i t .................................................................................................................................................... 3 6 - 3 7

B anks e x a m in e d by an d s u b m it t in g re p o rts to ................................................................3 -6

B o r r o w in g p o w e r ................................................................................................................................ 3 5

C a p ita l S t o c k ...................................................................................................................................... 2 1 0

C o m p a r a tiv e P e r fo rm a n c e R e p o r t ............................................................................................. 3 0

C o m p u te r iz e d a n a ly s is c a p a b i l i t i e s ..........................................................................................3 0

C o n s u m e r and civil rig h ts p r o t e c t i o n ......................................................................... 5, 1 9 -2 1

C o v e ra g e of d e p o s it i n s u r a n c e ...................................................................................... 3, 3 4 - 3 5

D e p o s it in s u ra n c e d is b u rs e m e n ts ..........................4 3 , 2 0 4 - 2 0 9 , 21 1

Deposit insurance fund (surplus) ..................................................... 3 5 , 3 8 - 4 1 , 2 1 0 , 2 1 2

D ire c to rs , ( m e m b e r s of th e B o a r d ) ............................................................................... iii, 7, 3 2

D ir e c to r y of key p e rs o n n e l ..............................................................................................................vii

D i v i s i o n s .................................................................................................................................................. 3 3

E m p lo y e e s ...............................................................................................................................................3 3

E n fo r c e m e n t a c t i v i t i e s ........................................................................................... 1 0 - 1 2 , 4 9 - 6 0

Equal E m p lo y m e n t O p p o r tu n ity P r o g r a m .............................................................................3 3

E x a m in a tio n of b a n k s .....................................................................................................................4 - 6

F in a n cia l s ta te m e n ts , 1 9 7 9 ...................................................................................................3 8 - 4 4

In c o m e and exp e nse s, 1 9 3 3 - 1 9 7 9 ...................................................................................... 2 1 0

Insured banks requiring d isbursem ents by. See Banks in financial difficulties.

In te g ra te d M o n it o r in g S yste m ( I M S ) ........................................................................................3 0

L iq u id a tio n a c t i v i t ie s ........................................................................................................ 1 6 - 1 7 , 19

Loans to, and purchase of assets from, insured banks ............. 15-16, 38, 41, 42

Losses in c u rr e d , 1 9 3 4 - 1 9 7 9 ........................................................................................... 15, 2 0 8

M e th o d s of p r o te c tin g d e p o s ito r s .................................................................................... 1 4 - 1 9

O ffic e of C o r p o r a te A u d its ............................................................................................................3 2

O f f i c i a l s ...................................................................................................................................... iii, vii, 3 2

O r g a n iz a t io n ...............................................................................................................................................vi

P a ym e n ts to in s u re d d e p o s i t o r s ..................................................... 1 4 - 1 5 , 2 0 5 , 2 0 9 , 2 1 2

P ro b le m b a n k s .............................................................................................................................. 1 2 - 1 4

Receiver, FDIC a s .........................................................................................................................1 5 - 1 6

R e c o v e r ie s ........................................................................................................................... 1 8 - 1 9 , 2 0 8

R e g io n s ....................................................................................................................................................viii

R e g u la tio n of in te re s t r a t e s ...................................................................................................2 2 - 2 4

R e p o rts fr o m b anks .......................................................................................................................... 2 6

R e p o rts of c h a n g e in b a n k c o n t r o l ..........................................................................................8 - 9

Reserve fo r losses on assets a c q u i r e d .................................................................. 3 0 , 3 8 , 4 0

Rules a n d r e g u la t io n s ........................................................................................................ 1 3 1 - 1 3 4

S o u r c e an d a p p lic a tio n of f u n d s ............................................................................................... 41

S u p e r v is o r y r e s p o n s ib i lit y ............................................................................................................3 -6

Federal Financial Institutions Examination Council (FFIEC)............................... 6, 9, 2 4 -2 6

Federal H o m e Loan B ank B o a r d ........................................................................................................ 9, 2 0

Federal le g is la tio n , 1 9 7 9 ......................................................................................................................... 131

Federal R eserve a u t h o r i t i e s ........................................................................... 3, 4, 9, 10, 14, 2 5 , 2 6

Federal Reserve m em ber banks. See Class of bank, banking data presented by.

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F id e lity Bank, U tica, M i s s i s s i p p i .............................................................................................................. 17

Financial Institutions Regulatory and Interest Rate Control

A c t of 1 9 7 8 (FIRIRCA) ................................................................................................... 8, 9, 2 4 , 2 6 , 2 9

G a te w a y N a tio n a l B a n k o f C h i c a g o ...................................................................................................... 17

G en era l A c c o u n t i n g O f f i c e .........................................................................................................................3 6

G u a ra n ty B a n k an d T ru s t Co., C h ic a g o , III ........................................................................................ 17

H o m e M o r tg a g e D is c lo s u re A c t of 1 9 7 5 .................................................................................... 4, 2 0

In c o m e o f F D I C ............................................................................................................................. 3 5 - 3 7 , 2 1 0

Income of insured com m ercial banks:

Am ounts of principal com ponents:

A n n u a lly , 1 9 7 4 - 1 9 7 9 ................................................................................................................ 1 8 9

By class of bank, 1 9 7 9 .............................................................................................................. 1 9 2

By size of bank, 1 9 7 9 ................................................................................................................ 1 9 4

M e th o d s of t a b u la tin g d a t a ..................................................................................................... 1 8 6

Ratios of incom e items:

A n n u a lly , 1 9 7 4 - 1 9 7 9 ................................................................................................................ 191

By size of bank, 1 9 7 9 ................................................................................................................ 1 9 4

S o u rc e s of data ............................................................................................................................. 1 8 7

Income of insured mutual savings banks:

A m o u n ts o f p r in c ip a l c o m p o n e n ts , 1 9 7 4 - 1 9 7 9 ........................................................... 1 9 7

Ratios of in c o m e and e x p e n s e item s, 1 9 7 4 - 1 9 7 9 ..................................................... 1 9 9

S o u rc e s of d a t a ................................................................................................................................ 1 8 7

In d iv id u a l R e tire m e n t A c c o u n t s ..............................................................................................................3 4

Insolvent banks. See Banks in financial difficulties.

INDEX 219

Insured banks. See Assets, liabilities and capital of banks; Banks in financial 

difficulties; Deposits; Income of insured com m ercial banks; Income of insured 

m utual savings banks; N um ber of banks and branches.

Insured com m ercial banks not m em bers of the Federal Reserve System.

See Class of bank; banking data presented by.

Insured deposits. See Banks in financial difficulties; FDIC, coverage of deposit

insurance.

Insured State banks m em bers of the Federal Reserve System.

See Class of bank, banking data presented by.

In te ra g e n c y s u p e r v i s i o n ................................................................................................................ 3, 4, 6, 9

Interest rates;

In c re a s e d in te re s t e x p e n s e ( g e n e r a l ) ......................................................................................22

Federal fu n d rates ............................................................................................................................ 22

Paid o n m a rk e t s e c u r it ie s ................................................................................................................22

Paid on m oney market c e rtific a te s ........................................................................................... 23

Paid on tr e a s u r y b i l l s .........................................................................................................................22

Paid on d e p o s i t s ................................................................................................................... 191, 203

In te rn a tio n a l b a n k in g .................................................................................................................. 22, 24, 25

In te rn a tio n a l B a n k in g A c t o f 1 9 7 8 .................................................................................. 24, 26

Investments. See Assets, liabilities, and capital of banks; Assets and liabilities of 

FDIC; Banks in financial difficulties.

K e o g h r e tir e m e n t p l a n s .............................................................................................................................. 34

Legal Division activities:

E v a lu a tio n of o u ts id e a t t o r n e y s ........................................................................................................ 28

G u id e lin e s fo r s e le c tin g o u ts id e c o u n s e l .................................................................................. 28

Legislation relating to deposit insurance and banking, Federal,

enacted in 1 9 7 9 ................................................................................................................... 131

Liquidation activities:

Integrated L iq u id a tio n A c c o u n tin g S y s t e m ................................................................................. 19

R e co ve rie s th r o u g h liq u i d a t i o n ................................................................................................. 16-17

L iv in g s to n State Bank, L iv in g s to n , N. J ............................................................................................... 17

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220 FEDERAL DEPOSIT INSURANCE CORPORATION

Loans. See Assets, liabilities, and capital of banks; Banks in financial 

difficulties.

Losses:

Of banks. See Income of insured com m ercial banks; Income of insured 

m utual savings banks.

Of F D IC ................................................................................................................ 1 5, 3 9 , 2 0 8 , 2 0 9 , 2 1 0

On loans, reserves for. See Valuation reserves.

Provision for, insured banks ............................................................ 1 8 9 - 1 9 1 , 1 9 4 , 1 9 6 - 2 0 1

Mergers. See Absorptions.

M in o r it y B a n k D e v e lo p m e n t P r o g r a m ................................................................................................. 2 2

M o n e y m a rk e t c e rtific a te s o f d e p o s i t ..........................................................................................2 2 - 2 3

M u n ic ip a l S e c u ritie s Rules M a k in g B o a rd (M S R B ) ....................................................................27

M utual savings banks. See Assets, liabilities and capital of banks;

Deposits; Incom e of insured banks; Num ber of banks and branches.

National banks. See Class of bank, banking data presented by.

National banks added to FDIC system of processing reports

o f c o n d itio n .................................................................................................................................................. 3 0

N a tio n a l C re d it U n io n A d m i n i s t r a t i o n .....................................................................................................9

N e g o tia b le O rd e r of W ith d r a w a l (N O W ) A c c o u n t s ............................................................. 2 2 , 2 9

N e w b anks, 1 9 7 9 ............................................................................................................................. 1 4 0 -1 4 3

Noninsured banks. See Absorptions; Adm ission of banks to insurance;

Assets, liabilities and capital of banks; Banks in financial difficulties; C lassification of banks; Class of bank, banking data presented by; Deposits; Num ber of 

banks and branches; Reports from banks.

N um ber of banks and branches:

Banks:

By in s u ra n c e s ta tu s and ty p e of bank, J u n e 3 0 , 1 9 7 9 and

D e c e m b e r 3 1 . 1 9 7 9 ........................................................................................ 1 6 1 , 1 6 4 , 1 6 8

By insurance status, type of bank, num ber of branches and

State, D e c e m b e r 3 1 . 1 9 7 9 ................................................................................................. 1 4 4

By S tate a n d asset size of b a n k ............................................................................................ 1 5 4

By s u p e rv is o r y sta tu s a n d asset s i z e ................................................................................. 1 5 3

C h a n g e s d u r in g 1 9 7 9 ................................................................................................... 1 4 0 , 1 4 2

Branches:

By insurance status and type of bank, D ecem ber 31, 19 7 9 ............................. 1 4 0

By insurance status, type of bank and State, D ecem ber 3 1 ,1 9 7 9 ............. 144

C h a n g e s d u r in g 1 9 7 9 ................................................................................................. 1 4 0 , 1 4 2

Insured com m ercial banks:

D e c e m b e r call dates, 1 9 7 4 - 1 9 7 9 .................................................................................... 1 7 0

Distributed by capital, ratios and distribution of assets and

d e p o s its , D e c e m b e r 3 1 . 1 9 7 9 .......................................................................................... 1 8 3

Insured m utual savings banks:

D e c e m b e r call dates, 1 9 7 4 - 1 9 7 9 .................................................................................... 1 7 8

N o n in s u re d b a n ks by State, D e c e m b e r 3 1 , 1 9 7 9 ................................................... 1 4 4

Unit banks, by insurance status and State. Decem ber 31. 1 9 7 9 .................... 1 4 4

O bligations of banks. See Assets, liabilities, and capital of banks.

Office of C onsum er Affairs and Civil R ights .............................................................. 5, 19. 2 1 - 2 2

O ffic ia ls o f F D IC ................................................................................................................................................. m

Operating banks. See Num ber of banks and branches.

O p p o r tu n ity F u n d in g C o r p o r a t i o n ........................................................................................................ 2 2

Paym ents to d e p osito rs 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.

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INDEX 221

P ro b le m b a n k s ...........................................................................................................................................1 2 - 1 4

Protection of d epositors. See Banks in financial difficulties; D eposit insurance 

coverage.

Receivership, insured banks placed in. See Banks in financial difficulties.

Recoveries;

By banks on assets charged off. See Incom e of insured com m ercial banks;

incom e of insured m utual savings banks.

By FDIC on disbursem ents. See Banks in financial difficulties.

R e g io ns, F D I C .................................................................................................................................................... vm

R e m ova l p r o c e e d i n g s .................................................................................................................................... 12

R e p o rts f r o m b a n k s ....................................................................................................................................... 2 4

Reports and surveys:

D e v e lo p m e n t o f ....................................................................................................................................2 4

Disclosure of loans to bank officers and stockholders ................................................. 2 6

M onitoring m oney market certificates and autom atic

t r a n s f e r s ...............................................................................................................................................2 6

New report form for condition and income ....................................................................... 2 6

R esearch a c tiv itie s ......................................................................................................................................... 2 9

Reserves:

Of FDIC, fo r losses on assets a c q u i r e d .................................................................................. 3 8

Of insured banks for losses on assets. See Valuation reserves.

W ith Federal Reserve Banks. See Assets, liabilities and capital 

of banks.

R ig h t to F in a n cia l Privacy A c t of 1 9 7 8 ............................................................................................... 21

Rules and regulations of the FDIC. See Federal Deposit Insurance Corporation.

Rules and r e g u la tio n s , 1 9 7 9 :

C h a n g e in b a n k c o n t r o l ............................................................................................................... 131

C o r r e s p o n d e n t a c c o u n ts and d is c lo s u r e of m ate ria l f a c t s ..................................... 1 3 3

D is c lo s u re of tr u s t asset re p o rts ........................................................................................... 131

F ore ig n a c tiv itie s of in s u re d State n o n m e m b e r b a n k s .............................................. 1 3 3

In te re st rate r e g u l a t i o n s .............................................................................................................. 131

In te rn a tio n a l B a n k in g A c t .......................................................................................................... 1 3 3

Limits on loans to executive officers, directors and principal

s h a r e h o ld e r s .................................................................................................................................. 1 3 4

M a n a g e m e n t o ffic ia l i n t e r lo c k s ............................................................................................... 1 3 3

P ro p o s a ls to s im p lify FDIC rules and r e g u la t io n s ......................................................... 1 3 4

R e c o rd k e e p in g fo r s e c u rity t r a n s a c t i o n s ........................................................................... 1 3 2

S afety and s o u n d n e s s e x a m in a t io n s ........................................................................................................ 4

Salaries and wages of insured banks. See Income of insured com m ercial 

banks; Income of insured mutual savings banks.

Securities. See Assets, liabilities, and capital of banks; Assets and liabilities of

FDIC; Banks in financial difficulties.

Securities activities:

Lost and sto le n s e c u r i t i e s ..............................................................................................................2 7

M u n ic ip a l s e c u ritie s , d e a le r a c t i v i t y ........................................................................................27

O ffe rin g c ir c u la r p o lic y s ta te m e n t ........................................................................................... 2 8

R e g is tra tio n and r e p o r t i n g ............................................................................................................2 7

S e c u ritie s and E x c h a n g e C o m m i s s i o n ...............................................................................................2 7

S e c u ritie s , b a n k r e g u la tio n o f ..........................................................................................................2 7 - 2 8

S e c u ritie s E x c h a n g e A c t of 1 9 3 4 .................................................................................................... 6, 2 7

S e c u ritie s In fo r m a tio n C enter, In c ......................................................................................................... 2 7

Size of bank, data for banks classified by am ount of assets:

A ssets and lia b ilitie s, p e rc e n ta g e s of, in s u re d banks, 1 9 7 9 ................................. 1 8 0

Banks r e q u ir in g d is b u r s e m e n ts by FDIC (d e p o s it size) 1 9 3 4 - 1 9 7 9 ................ 2 0 5

I n c o m e of in s u re d c o m m e r c ia l b anks, 1 9 7 9 .................................................................. 1 9 3

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In c o m e ratio s of in s u re d c o m m e r c ia l banks, 1 9 7 9 ................................................... 1 9 6

N u m b e r, assets, and d e p o s its of all b a n k s ....................................................................... 1 5 3

N u m b e r, assets, and d e p o s its of all c o m m e r c ia l banks, by S ta te ........................ 1 5 4

N u m b e r of e m p lo y e e s of in s u re d c o m m e r c ia l banks, 1 9 7 9 ................................. 1 9 4

Num ber of insured com m ercial banks, grouped by ratios of selected

item s to assets and d e p o s its , D e c e m b e r 3 1 , 1 9 7 9 ............................................... 1 8 3

Small savers:

In te re st rate c h a n g e re g u la tio n s ...............................................................................................2 3

T w o and o n e -h a lf year c e r t i f i c a t e s ........................................................................................... 23

S o u th e rn N a tio n a l Bank, B ir m in g h a m , A l a b a m a ........................................................................... 17

Special services:

Office of:

C o n tr o lle r ...........................................................................................................................................3 2

C o r p o r a te A u d i t s ............................................................................................................................ 3 2

E xecutive S e c r e t a r y .......................................................................................................................3 2

I n fo r m a tio n ....................................................................................................................................... 31

L eg isla tive A f f a i r s .......................................................................................................................... 31

State, banking data classified by:

C h a n g e s in c o m m e r c ia l ban ks and b ra n c h e s , 1 9 7 9 ................................................. 1 4 2

D isbursem ents, deposits, and depositors in insured banks requiring

d is b u r s e m e n ts by FDIC, 1 9 3 4 - 1 9 7 9 ............................................................................. 2 0 5

Number, assets and deposits of com m ercial banks, by asset size of

b a n k .................................................................................................................................................... 1 5 4

Num ber of banks and branches, by class of bank and type of office,

D e c e m b e r 3 1 . 1 9 7 9 ................................................................................................................. 1 4 4

P e rc e n ta g e of banks in s u re d , D e c e m b e r 3 1 , 1 9 7 9 ................................................... 1 4 4

State banks. See Class of bank, banking data presented by.

S to ckh o ld e rs of banks, net p ro fits available for. See Incom e of insured 

com m ercial banks.

Supervision:

D e v e lo p m e n t of u n ifo r m p o lic ie s .................................................................................................9

Federal F in a n cia l In s titu tio n s E x a m in a tio n C o u n c il .......................................................... 9

In te ra g e n c y C o o r d in a tin g C o m m i t t e e ........................................................................................9

Uniform agreem ent on classification of assets and appraisal of

s e c u r i t i e s ............................................................................................................................................. 10

U n ifo rm m o n ito r in g of fu tu re s c o n t r a c t s ............................................................................... 10

U n ifo rm ra tin g system fo r e x a m in a tio n s .................................................................................. 9

R e s p o n s ib ilitie s u n d e r In te rn a tio n a l B a n k in g A c t ............................................................ 2 4

S u p e rv is io n of b a n k h o ld in g c o m p a n i e s ...............................................................................................4

S u p e r v is io n of ba n ks by FDIC ................................................................................................................3 -7

Supervisory class, banks grouped by:

Assets and lia b ilities of, Ju n e 3 0, 1 9 7 9 and D e c e m b e r 31, 1 9 7 9 .................... 161

C h a n g e s in n u m b e r of, 1 9 7 9 ................................................................................................... 1 4 0

N u m b e r of b a n k s and s i z e .......................................................................................................... 1 5 3

In c o m e of in s u re d c o m m e r c ia l b a n k s ................................................................................ 1 9 2

N u m b e r of b a n k in g o ffic es , by State, D e c e m b e r 3 1 , 1 9 7 9 ................................... 1 4 4

S u s p e n s io n p r o c e e d i n g s ............................................................................................................................ 12

Taxes paid by insured banks. See incom e of insured com m ercial banks;

Income of insured mutual savings banks.

T e le p h o n e tr a n s fe r s e r v ic e s .......................................................................................................................2 9

Term inations of insurance for unsafe and unsound p ra ctice s ......................1 1 -1 2 , 4 9 - 6 0

T o n e y B ro th e rs Bank, D o e ru n , G e o rg ia .......................................................................................... 2 0 4

T ru s t a c tiv itie s of banks, e x a m in a tio n o f ............................................................................................... 6

T ru s t a ssets of in s u re d c o m m e r c ia l banks, s u rv e y of ....................................................................6

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Trust departments:

Assets managed ...............................................................................................................................6

E x a m i n a t i o n s ......................................................................................................................................6

New depart ments in 1 9 7 9 ..........................................................................................................6

Numbe r su pe rv is ed ......................................................................................................................... 6

Overseas trust activities, survey o f .......................................................................................... 6

Reports r e q u i r e d ...............................................................................................................................6

Trust assets of insured comme rcial banks, survey of ....................................................6

Truth in Lending Act ............................................................................................................. 4-5 2 0 - 2 2

Uniform Interagency Supervision. See Interagency supervision.

Unit banks, by insurance status and State, December 31, 1 9 7 9 ................................... 144

Valuation reserves. See also Assets, liabilities, and capital of banks:

A m o u n ts held, June 30, 1 9 7 9 and December 31, 1 9 7 9 ...................................161, 164

A m o u n ts held, December call dates, 1 9 7 4 - 1 9 7 9 ........................................................... 170

Village Bank, Pueblo West, C o l o r a d o .............................................................................................. 1 7

W h it e Collar C r i m e .................................................................................................................................. 2 7

INDEX 223

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis