ANNUAL REPORT OF THE 

FEDERAL DEPOSIT INSURANCE CORPORATION

1973

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Federal Reserve Bank of St. Louis
A preliminary report, highlighting the Corporation's operations 

during 1973, was published and submitted to the Congress on 

May 17, 1974.

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

FEDERAL DEPOSIT INSURANCE CORPORATION 

Washington, D.C., July 20, 1974

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

Insurance Act, the Federal Deposit Insurance Corporation is pleased to submit 

its annual report for the calendar year 1973.

Respectfully yours,

FRANK WILLE 

Chairman

THE PRESIDENT OF THE SENATE

THE SPEAKER OF THE HOUSE OF REPRESENTATIVES

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FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION

BOARD OF DIRECTORS

Chairm an............................................................................ Frank Wille

D ire c to r............................................................... George A. LeMaistre

Comptroller o f the Currency ..................................... James E. Smith

OFFICIALS

Deputy to the Chairman......................................... Robert E. Barnett

Assistant to the Director ...................................John C.H. Miller, Jr.

Assistant to the Director .....................................Albert J. Faulstich

(Comptroller of the Currency)

Executive Secretary...................................................... Alan R. Miller

General Counsel.................................................... Edward Bransilver

Director, Division o f Bank Supervision................. Edward J. Roddy

Chief, Division o f Liquidation ...................................John J. Slocum

Director, Division o f Research................................ Paul M. Horvitz

C ontroller...........................................................Edward F. Phelps, Jr.

Director, Office o f Management

Systems and Financial A udits.......................... Robert E. Barnett

Special Assistant to the Chairman ......................Stephen C. Hansen

Special Assistant to the Chairman ............................ Edwin B. Burr

Executive Assistant to the B o a rd............... Timothy J. Reardon, Jr.

December 31, 1973

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

REGIONAL DIRECTORS

Atlanta

Lewis C. Beasley

2 Peachtree St., N.W., Suite 3030 

Atlanta, Georgia 30303 

Boston

Mark J. Laverick 

2 Center Plaza, Room 810 

Boston, Massachusetts 02108 

Chicago

James A. Davis

164 West Jackson Blvd., Rm. 1500 

Chicago, Illinois 60604

Columbus

John R. Curtis

37 West Broad Street, Suite 600 

Columbus, Ohio 43215 

Dallas

Quinton Thompson 

300 North Ervay Street,Suite 3300 

Dallas, Texas 75201 

Madison

Bernard J. McKeon 

110 E. Main Street, Room 715 

Madison, Wisconsin 53703 

Memphis

Roy E. Jackson

165 Madison Avenue, Suite 1010 

Memphis, Tennessee 38103

Minneapolis

Roger B. West

109 South 7th Street, Suite 710 

Minneapolis, Minnesota 55402 

New York

Claude C. Phillippe

345 Park Avenue, 21st Floor

New York, New York 10022

Omaha

Burton L. Blasingame 

1700 Farnam Street, Suite 1200 

Omaha, Nebraska 68102 

Philadelphia

Charles E. Doster 

5 Penn Center Plaza, Suite 2901 

Philadelphia, Pennsylvania 19103 

Richmond 

John Stathos

908 E. Main Street, Suite 435 

Richmond, Virginia 23219 

St. Louis

Robert V. Shumway 

720 Olive Street, Suite 2909 

St. Louis, Missouri 63101 

San Francisco 

John J. Early

44 Montgomery Street, Suite 3600 

San Francisco, California 94104

FEDERAL DEPOSIT INSURANCE CORPORATION 

M a i n O f f i c e : 550 1 7t h S t r e e t , N. W., W a s h i n g t o n , D. C. 2 0 4 2 9

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Federal Reserve Bank of St. Louis
CONTENTS

Banking offices— bank performance— 1973 ................................. xi

Deposit insurance participation and coverage.......................... xm

PART ONE 

OPERATIONS OF THE CORPORATION

Deposit insurance disbursements ................................................ 3

Supervisory activities.................................................................... 7

Administration of the Corporation..............................................25

Finances of the Corporation.........................................................26

PART TWO

MERGER DECISIONS OF THE CORPORATION

Bank absorptions approved by the Corporation........................40

PART THREE 

LEGISLATION AND REGULATIONS

Federal legislation (summary)— 1973 ..........................................157

Rules and regulations of the Corporation (summary)— 1973 . .158

PART FOUR

STATISTICS OF BANKS AND DEPOSIT INSURANCE

Number of banks and branches .................................................. 166

Assets and liabilities of banks.......................................................187

Income of insured banks ............................................................. 209

Banks closed because of financial difficulties;

deposit insurance disbursements............................................225

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Federal Reserve Bank of St. Louis
TABLES

DEPOSIT INSURANCE DISBURSEMENTS:

1. Protection of depositors of insured banks requiring disbursements by

the Federal Deposit Insurance Corporation, 1934-1973 ............... 5

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

transactions, January 1, 1934-December 31, 1973.......................... 6

3. Insured banks closed during 1973 requiring disbursements by the

Federal Deposit Insurance C orporation............................................ 7

SUPERVISORY ACTIVITIES:

4. Bank examination activities of the Federal Deposit Insurance

Corporation in 1972 and 1973 ......................................................... 9

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

liabilities approved under section 18(c) of the Federal Deposit 

Insurance Act during 1973.................................................................. 15

6. Approvals under section 18(c) of the Federal Deposit Insurance Act

during 1973— banks grouped by size and in States according to 

status of branch banking .................................................................... 16

7. Cease-and desist orders and actions to correct specific unsafe or unsound practices or violations of law or regulations, 1973 ............... 16

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

unsound banking practices or violations of law or regulations, 

1936-1973 ............................................................................................ 17

ADMINISTRATION OF THE CORPORATION:

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

Corporation, December 31, 1972 and 1973 ..................................... 26

FINANCES OF THE CORPORATION:

10. Statement of financial condition, Federal Deposit Insurance Corporation, December 31, 1973 .................................................................... 27

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

Insurance Corporation, year ended December 31, 1973 ............... 28

12. Determination and distribution of net assessment income, Federal

Deposit Insurance Corporation, year ended December 31, 1973 .. 29

13. Sources and application of funds, Federal Deposit Insurance Corporation, year ended December 31, 1973 ................................................ 29

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

year, from beginning of operations, September 11, 1933, to 

December 31, 1973, adjusted to December 31, 1973 ...................... 30

15. Insured deposits and the deposit insurance fund, 1934-1973 ............. 32

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NUMBER OF BANKS AND BRANCHES:

Explanatory n o te .............................................................................................. 166

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

United States (States and other areas) during 1973 ...................... 168

102. Changes in number of commercial banks and branches in the United

States (States and other areas) during 1973, by State............. 170

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

areas), December 31, 1973

Grouped according to insurance status and class o f bank, and

by State or area and type o f office ................................................ 172

104. Number and deposits of all commercial and mutual savings banks

(States and other areas), December 31, 1973

Banks grouped by class and deposit size................................... 181

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

(States and other areas), December 31, 1973

Banks grouped by size o f bank and S tate................................. 182

ASSETS AND LIABILITIES OF BANKS:

Explanatory n o te ............................................................................................ . 187

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

(States and other areas), June 30, 1973

Banks grouped by insurance status and class o f b a n k ............. 189

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

(States and other areas), December 31, 1973

Banks grouped by insurance status and class o f b a n k ............. 193

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

(States and other areas), June 30, 1973, and December 31, 1973 

Banks grouped by insurance status............................................197

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

States (States and other areas), December call dates, 1963, 1969- 

1973 ................................................................................................... 199

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

States (States and other areas), December call dates, 1963, 

1969-1973 .......................................................................................... 202

111. Percentages of assets and liabilities of insured commercial banks

operating throughout 1973 in the United States (States and 

other areas), December 31, 1973

Banks grouped by amount o f deposits ..................................... 204

112. Percentages of assets and liabilities of insured mutual savings banks

operating throughout 1973 in the United States (States and 

other areas), December 31, 1973

Banks grouped by amount o f deposits ..................................... 205

113. Distribution of insured commercial banks in the United States

(States and other areas), December 31, 1973

Banks grouped according to amount o f deposits and by ratios

o f selected items to assets or deposits ............................................206

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INCOME OF INSURED BANKS:

Explanatory n o te ..............................................................................................209

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

and other areas), 1965-1973 ........................................................... 212

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

(States and other areas), 1965-1973 ................................................ 214

116. Income of insured commercial banks in the United States. (States

and other areas), 1973

Banks grouped by class of b a n k ................................................ 215

117. Income of insured commercial banks operating throughout 1973 in

the United States (States and other areas)

Banks grouped by amount of deposits..................................... 217

118. Ratios of income of insured commercial banks operating throughout

1973 in the United States (States and other areas)

Banks grouped according to amount o f deposits....................219

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

and other areas), 1969-1973 ........................................................... 221

120. Ratios of income of insured mutual savings banks in United States

(States and other areas), 1969-1973 ................................................ 223

BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES;

DEPOSIT INSURANCE DISBURSEMENTS:

Explanatory n o te ..............................................................................................225

121. Number and deposits of banks closed because of financial

difficulties, 1934-1973...................................................................... 227

122. Insured banks requiring disbursements by the Federal Deposit

Insurance Corporation during 1973 ................................................ 228

123. Depositors, deposits, and disbursements in insured banks requiring

disbursements by the Federal Deposit Insurance Corporation, 

1934-1973

Banks grouped by class o f bank, year o f deposit payoff or

deposit assumption, amount o f deposits, and S ta te ......................230

124. Recoveries and losses by the Federal Deposit Insurance Corporation

on principal disbursements for protection of depositors, 1934- 

1973 .................................................................................................... 223

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Federal Reserve Bank of St. Louis
BANKING OFFICES— BANK PERFORMANCE-1973

A total of 14,194 commercial banks, and 482 mutual savings 

banks, were in operation in the United States at the end of 1973. 

The number of commercial banks beginning operations has increased annually in the past several years, and the number in 1973, 

340, was the most in many years. The 98 commercial banks that 

ceased operations due to mergers was the lowest number in any 

recent year except 1971. The net result was an increase in commercial banks of 244, the largest yearly rise in recent times. In the 

absence of any mutual savings banks beginning operation in 1973, 

mergers caused a decline by 4 in the total number of those banks in 

the United States.

The number of insured commercial banks rose by 243 during 

1973 to 13,976, this total consisting of 4,661 national banks, 1,076 

State bank members of the Federal Reserve System, and 8,239 

State nonmember insured banks. Reflecting the changes in number 

of operating banks, as well as shifts by banks from one supervisory 

class to another, the number of national banks increased by 47, 

State member banks declined by 16, and State nonmember banks 

increased by 212. The number of noninsured commercial banks 

increased by one in 1973 to 218.

The number of commercial bank branches continued to grow 

substantially in 1973, as the total increased by 1,846, to 26,718 in 

operation at the end of the year.

Additional details of changes in numbers of banks and branches 

during 1973 are contained in tables 101-102 of this report.

Commercial banks operated in an atmosphere of strong economic 

expansion during most of 1973 and substantial price inflation 

throughout the entire year. Reflecting these factors, total assets of 

insured commercial banks increased by $97 billion, or 13.0 percent, 

following a 15 percent increase during 1972. Total deposits grew by 

10.6 percent in 1973, largely in the form of time certificates of 

deposit carrying substantially higher rates of interest. Banks also 

increased other borrowings, at record high interest rates, thereby 

incurring substantial increases in costs of borrowed money. Demand 

deposits and savings deposits scored relatively modest increases during the year.

Bank loans increased by almost $81 billion, or about 19.3 percent, from the December 1972 level, with substantial gains in all 

major loan categories. To finance this substantial increase, insured 

commercial banks bid aggressively for time deposits and borrowed 

heavily, and also drew down their holdings of U.S. Treasury securities. Total investments rose by only 2.5 percent in the year. As a 

result, the banks' ratio of cash, U.S. Treasury, and Federal agency 

securities to deposits declined during the year.

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FEDERAL DEPOSIT INSURANCE CORPORATION

Reflecting primarily a sharp rise in income on loans, insured 

commercial banks' operating revenue increased by nearly $13 billion, or 31.8 percent, in 1973 from the year before. Interest paid on 

borrowed funds (excluding capital notes and debentures)— up 185 

percent— and interest on deposits— up 43.3 percent— climbed even 

more sharply, boosting operating expenses by more than one-third. 

However, net income after taxes and sales of securities rose by 16.4 

percent, a somewhat higher rate than the growth of total assets, and 

net income as a percentage of total assets rose to .85 in 1973, from 

.83 in 1972. The 1973 ratio of earnings to equity capital also was 

higher, 12.8(5 in 1973 compared to 12.25 in 1972.

Deposits at all mutual savings banks increased by $4.9 billion 

(5.4 percent) in 1973, compared to $10.2 billion (12.5 percent) in

1972. Most of the deposit growth (which, for the year as a whole, 

merely approximated the amount of interest credited on deposits) 

occurred during the first half of the year. In the second half of the 

year, there were a few months in which net deposit withdrawals 

exceeded interest accumulations. This disintermediation in savings 

banks was caused by record high interest rates on competing money 

market instruments, which reached their peak in the third quarter 

of 1973. As deposit flows dried up, savings banks sold investments 

to obtain funds for purchasing mortgages; Treasury securities and 

corporate bond holdings by the end of 1973 were down significantly from previous year-end levels. Savings banks thereby were 

able to increase their holdings of mortgages by $5.7 billion (8.4 

percent), putting a large percentage of this money into 1-4 family 

conventionally financed mortgages.

During 1973, savings banks were able to invest their funds in 

assets with a gross yield substantially higher than the average earned 

on existing loans and investments. The ratio of operating income to 

average total assets for FDIC-insured mutual savings banks was 6.68 

percent in 1973, an increase of 30 basis points from the comparable 

ratio for 1972. Average interest payments on time and savings deposits increased to 5.44 percent in 1973, from 5.22 percent in

1972, as a result of the shift from regular savings accounts to the 

higher yielding time and other special accounts in the second half of 

the year. Net operating income after dividends and interest of 

FDIC-insured mutual savings banks increased 13.5 percent between

1972 and 1973. However, because of greater losses on securities 

sales and higher taxes, net income in dollar terms remained fairly 

constant.

Statistics of assets and liabilities, and income and expenses, of 

banks in 1973 are contained in tables 106-113, and 114-120, respectively, in the rear of this report.

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

Incorporated banks and trust companies that are engaged in the 

business of receiving deposits may participate in Federal deposit 

insurance. About 98.5 percent of all commercial banks in the 

United States on December 31, 1973 were insured. The 218 noninsured institutions consisted of 71 nondeposit trust companies, 16 

private banks, and 131 other commercial banks of deposit. While 

one or more noninsured banks or nondeposit trust companies were 

operating in 39 States, two States, Colorado and New York, accounted for nearly one-third of these banks. Of 482 mutual savings 

banks operating in the United States at the end of 1973, 322 were 

insured by FDIC; 159 banks in Massachusetts were covered under 

that State's deposit insurance program. One mutual savings bank 

not insured by the Corporation was located in the State of Maine.

The basic amount of insurance available to each depositor has 

been established by law at $20,000 since December 23, 1969. In 

each insured bank, the different types of deposits— demand, savings, 

and other time deposits— held by each depositor in the same right 

and capacity are therefore insured up to $20,000 in the aggregate. 

Different accounts, which may include, for example, accounts of a 

single holder, valid joint accounts, or accounts of irrevocable trusts, 

in which the interest of any single depositor in each of such accounts represents a different right and capacity, are separately insured up to $20,000.

On December 31, 1973, of the total deposits in all banks insured 

by the Corporation, an estimated 60.7 percent were covered by 

Federal deposit insurance. Reflecting the differences in the average 

size of deposit accounts among commercial banks, the estimated 

percentages of coverage for State-chartered commercial banks not 

members of the Federal Reserve System, and for all member banks, 

were 73.4 and 51.7 respectively. For FDIC-insured mutual savings 

banks, the estimated coverage was 94.4 percent.

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Federal Reserve Bank of St. Louis
OPERATIONS OF THE CORPORATION

PART ONE

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Federal Reserve Bank of St. Louis
DEPOSIT INSURANCE DISBURSEMENTS

Protection of depositors since 1934. Since the beginning of Federal deposit insurance, there have been 502 failing insured banks 

that involved the payment of insured deposits, of which 297 were 

closed for liquidation. When an insured bank is closed by the chartering authority, the Corporation's claim agents must analyze its 

deposit accounts for the purpose of bringing together all deposits 

held by each depositor in the same right and capacity. The total of 

each such verified account, from which any matured debt owed by 

the depositor to the bank may be deducted, is paid by the Corporation up to the maximum of insurance established by law. Depositors having deposits in excess of the insurance limit per depositor 

may receive additional recoveries through the proceeds of asset 

liquidation which are distributed pro rata to the bank's creditors as 

liquidating dividends.

The Corporation has provided financial assistance to enable 205 

failing institutions to be absorbed by other insured banks since 

1934. As provided by the Federal Deposit Insurance Act, the Corporation may assist in the merger of a failing insured bank whenever, in the judgment of the Corporation's Board of Directors, it 

will reduce the risk or avert a threatened loss to the Corporation. 

The Corporation's financial assistance to the bank or its receiver 

may take the form of the purchase of assets of the distressed bank, 

the granting of a loan secured by assets, or a loan guaranteeing an 

insured bank against loss by reason of its taking over the assets and 

assuming the deposit liabilities of another insured bank. In deposit 

assumption cases, all deposits are made available in full immediately 

upon transfer of the accounts to the absorbing bank, subject to any 

time requirements applicable to the original deposit contract.

Under authority given to the Corporation in 1950 in section 

13(c) of the Federal Deposit Insurance Act, the Corporation may 

provide financial assistance to an operating insured bank, upon a 

finding that (a) but for the contemplated assistance, the bank is in 

danger of closing and (b) the bank is essential in providing adequate 

banking service to the community. The Corporation used its section 

13(c) authority for the first time in 1971, and on a second occasion 

in 1972.

The Federal Deposit Insurance Act requires that the Corporation 

be appointed receiver for all national banks that are placed in receivership, and that it accept appointment as receiver for closed 

State banks when such appointment is authorized by State law and 

is tendered by the State authorities. The Corporation's Division of 

Liquidation has responsibility for liquidating the assets of closed 

insured banks, as well as the assets that the Corporation acquires 

when it provides financial assistance in deposit assumption cases. A t

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4 FEDERAL DEPOSIT INSURANCE CORPORATION

the end of 1973, the Division of Liquidation was handling a total of 

61 liquidation cases.

In all cases of failing insured banks through 1973, the Corporation had disbursed a total of $903 million, including principal disbursements of $542 million in deposit assumption cases, and $285 

million in deposit payoff cases, and other disbursements totaling 

$76 million. These disbursements had enabled all depositors to receive full recovery of their deposits in the deposit assumption cases, 

and the Corporation's disbursements were primarily responsible for 

the fact that 93.8 percent of deposits had been paid or made available in deposit payoff cases (Chart A and table 1). A total of 4.7 

percent of the amounts paid or made available in all cases resulted 

from offset, security or preference, and liquidation of assets. Losses 

experienced by the Corporation in deposit payoff and assumption 

cases, including estimated amounts in active cases, had amounted to 

$124.3 million, or 13.8 percent of its disbursements in these cases, 

through the end of 1973 (table 2).

Banks failing in 1973. To protect depositors in 1973, the Corporation made disbursements in six cases (table 3). The amount 

disbursed through the end of the year in these cases, including some 

estimated additional required disbursements, totaled $185 million.

Chart A DEPOSITS AND LOSSES 

IN FAILED INSURED BANKS, 1 9 3 4 -1 9 7 3

TO TA L D E P O S IT S

$2.06 Billion

D IS B U R S E M E N T S

BY FD IC

$903.8 Million

$124.3 million

Losses to FDIC

Lost or not yet

available to depositors

$25.3 million

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DEPOSIT INSURANCE DISBURSEMENTS 5

Table 1. PROTECTION OF DEPOSITORS OF INSURED BANKS REQUIRING 

DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,

1934-1973

All cases 

(502 banks)

Deposit 

pa yo ff cases 

(297 banks)

Number

Deposit 

assumption cases 

(205 banks)

Num ber

Num ber of depositors or a c c o u n ts -to ta l1............

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

From FD IC 2 ...................................................

From offset4. ...................................................

From security or preference5 ......................

From asset liq u id a tio n 6 ...............................

Full recovery no t received as o f December 31 

1973 ..........................................................

Term inated cases...........................................

Active cases.....................................................

A m o u nt o f deposits (in th o u s a n d s )-to ta l............

Paid or made available.........................................

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

By offset8..........................................................

By security or preference9 ...........................

By asset liq u id a tio n 10. ..................................

N ot paid as of December 3 1 ,1 9 7 3 ....................

Terminated cases...........................................

Active cases11...................................................

2,152,136

2,145,307

2,098,476

40,831

3,107

2,893

3,412

3,417

2,055 ,1 7 1 12 

2,029,834

1,933,861 

20,997 

37,272 

37,704 

2 5 ,3 3 7 12 

2,355 

22,982

100.0

99.7

97.5

2.0

0.1

0.1

0.3

0.1

0.2

100.0

98.8

94.1

1.1

1.8

1.8

1.2

0.1

1.1

595,410

588,581

541,7503 

40,831 

3,107 

2,893

6,829

3,412

3,417

406,897

381,560

2 85,5877 

20,997 

37,272 

37,704

25,337

2,355

22,982

100.0

98.9

91.0

6.9

0.5

0.5

0.5

0.6

100.0

93.8

70.2

5.1

9.2

9.3

6.2

0.6

5.6

1.556.726

1.556.726

1.556.726

100.0

100.0

100.0

1.648.274

1.648.274

1.648.274

100.0

100.0

100.0

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

2Through direct paym ent to depositors in deposit pa yo ff cases; through assumption o f deposits by other insured banks, facilitated 

by FDIC disbursements of $542,392 thousand, in deposit assumption cases,

in c lu d e s 59,798 depositors, in term inated cases, who failed to claim th e ir insured deposits (see note 7).

in c lu d e s only depositors w ith claims offset in fu ll; most of these w ould have been fu lly protected by insurance in the absence of 

offsets.

5 Excludes depositors, paid in part by FDIC, whose deposit balances were less than the insurance m axim um .

6The insured portions of these depositor claims were paid by the C orporation,

in c lu d e s $232 thousand unclaimed insured deposits in term inated cases (see note 3).

in c lu d e s all amounts paid by offset.

in c lu d e s all secured and preferred claims paid from asset liqu id atio n; excludes secured and preferred claims paid by the 

Corporation.

1 in c lu d e s unclaimed deposits paid to authorized public custodians.

1 in c lu d e s $13,850 thousand representing deposits available, expected through offset, or expected from proceeds of liquidations.

12 Does not include an estimated $2.7 m illion of letters of credit in litigation.

In three cases, the Corporation provided financial assistance to enable other insured banks to assume the deposit liabilities of the 

failed banks. In each of the other cases, the banks were closed and 

the Corporation was appointed as receiver. In two of the six cases, 

one of which involved by far the largest failing insured bank in the 

Corporation's history, there had existed self-serving, unsafe and unsound loan practices and policies. Two cases involved check kites 

and other manipulations. One failure resulted from embezzlement 

or other manipulations, and another from managerial weaknesses in 

loan portfolio management.

United States National Bank. In October 1973, the deposit liabilities of United States National Bank, San Diego, California, were 

assumed by the Crocker National Bank, San Francisco, with the 

financial assistance of the Corporation, acting under authority of 

section 13(e) of the Federal Deposit Insurance Act. United States 

National Bank, on October 18, 1973, the date of its closing by the 

Comptroller of the Currency, had total assets of almost $1.3 billion

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6 FEDERAL DEPOSIT INSURANCE CORPORATION

and operated 64 offices. In all, 335,000 depositors with almost 

$920 million in deposits, including 3,300 whose individual deposits 

exceeded the $20,000 insurance limit, were fully protected as a 

result of the assumption transaction.

Upon assuming the liabilities of USNB of approximately $1.07 

billion, Crocker National Bank acquired the assets unrelated to the 

control stockholder of the bank, which were valued at $850 million, and received $130 million in cash which was disbursed by the 

Corporation as Receiver. The excess in the amount of liabilities 

assumed above the value of assets received is represented by an 

amount of $89.5 million that the assuming bank paid in competitive bidding as a premium for the deposits and going business of 

USNB. The Corporation as Receiver also made a disbursement of 

$30 million in settlement of indebtedness of USNB to the Federal 

Reserve Bank of San Francisco, for which the Receiver acquired 

assets that had been pledged against this obligation. In addition, the 

assuming bank, through its parent holding company, exercised its 

option under the assumption agreement to borrow from the Corporation, in the form of a 5-year note, a sum of $50 million for the 

purpose of augmenting its capital funds in reflection of the large 

increase in its liabilities that occurred in the transaction.

The Corporation sought bids from several California banking 

organizations, which were selected for consideration in part because 

each was regarded as having sufficient size and management capabilities to take over the operations and offices of a bank of USNB's 

size. In addition, none of these banks were heavily concentrated in 

the five counties of Southern California where USNB had branches,

Table 2. ANALYSIS OF DISBURSEMENTS, RECOVERIES, AND LOSSES 

IN DEPOSIT INSURANCE TRANSACTIONS,

JANUARY 1, 1934— DECEMBER 31, 1973

(In thousands)

Type of disbursement Disbursements Recoveries1 Losses

A ll d is b u rs e m e n ts -to ta l..................................................................................................... $903,831 $779,466 $124,365

Principal disbursements in deposit assumption and p a yo ff c a s e s -to ta l.......... 827,530 715,415 112,115

Loans and assets purchased (205 deposit assumption cases):

Total December 31, 1973 ................................................................................

Estimated a d d itio n a l.........................................................................................

542,632 345,211

133,476

191,020

45,708

$ 59,518

63,945

Deposits paid (297 deposit p a y o ff cases):

To December 31, 1973 .....................................................................................

Estimated a d d itio n a l.........................................................................................

283,837

1,061

$ 67,427

48,170

Advances and expenses in deposit assumption and oa yo ff c a s e s -to ta l.......... $ 7,909

Expenses in liquidating assets:

Advances to p ro te ct assets ............................................................................. 39,255

20,623

2,172

5,737

39,255

20,263

(2)

(2)

L iquidation expenses .......................................................................................

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

Field p a y o ff and other insurance expenses in 297 deposit p a y o ff cases . .

2,172

5,737

O ther d is b u rs e m e n ts -to ta l.......................................................................................... $ 8,874 $ 4,533 $ 4,341

Assets purchased to facilitate term ination of liquidations:

To December 31, 1973 .....................................................................................

Estimated a d d itio n a l.........................................................................................

8,303 3,895

638

3,770

Unallocated insurance expenses........................................................................... 571 (2) 571

1 Excludes am ounts returned to closed bank equity holders and $15.8 m illio n o f interest and allowable return received by FDIC. 

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SUPERVISORY AC TIV ITIE S

Table 3. INSURED BANKS CLOSED DURING 1973 REQUIRING 

DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION1

Name and location

Date of 

closing 

or deposit 

assumption

Number 

of depositors

A m o u n t 

o f deposits 

(in th ou ­

sands)2

Date of firs t paym ent to depositors 

or disbursement by 

FDIC

Depositors receiving 

fu ll recovery

Deposits 

paid 

(in thoussands)2

T otal ................................................ 352,552 $971,311 350,733 $968,998

Deposit pa yo ff

Delta Security Bank & T rust 

Company 

Ferriday, Louisiana

January 19, 1973 2,908 8,094 January 25, 1973 2,637 7,460

Elm Creek State Bank 

Elm Creek, Nebraska

May 7, 1973 4,157 2,915 May 19, 1973 3,145 2,698

The First State Bank 

Vernon, Texas

July 16, 1973 4,170 14,802 July 21, 1973 3,634 13,340

Deposit assumption

Skyline National Bank 

Denver, Colorado

March 26, 1973 1,752 6,006 March 26, 1973 1,752 6,006

First National Bank of 

Eldora 

Eldora, Iowa

October 5, 1973 4,565 7,540 O ctober 5, 1973 4,565 7,540

United States National Bank 

San Diego, C alifornia

October 18, 1973 335,000 931,954 O ctober 18,1973 335,000 931,954

1 Figures adjusted to and as of December 31, 1973.

in c lu d e s $16,499 thousand paid by FDIC claim agents in deposit payoff cases. W ith FDIC assistance, all deposits were made 

available in fu ll through the assuming banks in deposit assumption cases.

or in San Diego County, where USNB's share of the market was 

most significant. The highest of the bids that were received in this 

case was accepted.

Subsequent to the assumption transaction, the Corporation as 

Receiver held assets of USNB having a book value of approximately 

$420 million, against which the Corporation held a claim represented by its advances to the Receiver of $160 million. The 

recoveries will depend on the collectibility of assets held by the 

Receiver and the final aggregate amount of claims against the receivership estate.

SUPERVISORY ACTIVITIES

The Corporation has general supervisory responsibilities for insured commercial banks that are not members of the Federal Reserve System, and for FDIC-insured mutual savings banks. These 

banks, supervised also by the State authorities, represent about 58.1 

percent of all commercial banks and 66.8 percent of all mutual 

savings banks, respectively, in the United States. About 32.8 percent of all commercial banks in the United States are national 

banks, 7.6 percent are State bank members of the Federal Reserve, 

and 1.5 percent are State noninsured banks. While the commercial 

banks that are supervised by the Corporation represent a majority 

of operating commercial banks, they held only 20.6 percent of the 

total assets, and operated 38.8 percent of all offices, of commercial 

banks in the U.S. on December 31,1973.

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8 FEDERAL DEPOSIT INSURANCE CORPORATION

At the end of 1973, there were 1,354 more insured nonmember 

commercial banks in the U.S. than at the end of 1959, and 492 

fewer member banks (Chart B). In every year since then, the number of banks that began operations as nonmember insured banks 

exceeded the number that were merged, and annually there were 

shifts on balance of member banks to the nonmember insured classification. During this period, a total of 2,492 commercial banks 

began operations with Federal deposit insurance, of which 1,533 

were nonmember insured banks, and 268 noninsured banks were 

admitted to insured status during the period, of which 258 became 

insured nonmember banks.

For every branch or an insured commercial bank at the end of 

1959 there were 2.7 branches in 1973; for the entire period the 

increase in numbers of branches averaged more than 12 percent per 

year. About 66 percent of all insured commercial banks, and 71 

percent of nonmember insured banks, were unit banks in 1973, 

compared to 83 percent and 86 percent respectively, in 1959. For 

all insured commercial banks in 1973, about 71 percent of the unit 

banks were located in States where branching is prohibited under 

the laws of the States.

Under the Bank Holding Company Act, as enacted in 1956, holding companies that controlled two or more banks were required to

Chart B INSURED COMMERCIAL BANKS

AND BRANCHES IN THE UNITED STATES, 

D ecem ber 31, 1959, 1966, 1973

Thousands 

3 0 --------

Banks: Branches:

member of Federal Reserve System | . of member banks

m | nonmember insured of nonm em ber insured banks

Bank:. Branches

1959

Banks Branches

1966

Banks Branches

1973

Thousands 

------ 30

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SUPERVISORY A C TIV ITIE S 9

register with the Board of Governors of the Federal Reserve 

System. In 1970, the registration and other provisions of the Act 

were extended to holding companies that control one or more 

banks. In order to form a bank holding company as defined by the 

Act, and before any acquisition by a holding company of a bank or 

bank-related business as permitted by the Act, the approval of the 

Board of Governors must be obtained. As of December 31, 1973, 

there were 251 multi-bank holding companies in the United States, 

with 1,815 affiliated banks.

Examinations. Section 10(b) of the Federal Deposit Insurance 

Act authorizes the Corporation to examine any insured bank for 

insurance purposes. However, in the case of national banks, and 

State banks that are members of the Federal Reserve System, the 

Corporation receives from the Comptroller of the Currency and 

Federal Reserve Board, respectively, the reports of examinations, or 

has access to those reports, and thus the Corporation rarely makes 

its own examination of any member bank.

By means of regular supervisory examinations, the Corporation is 

able to determine the current condition of the banks that it supervises, and to evaluate their managements, and by this means it seeks 

also to discover and obtain correction of any unsafe or unsound 

practices or violations of laws and regulations. Other examination 

and investigation activities of the Corporation are involved with 

applications for deposit insurance, applications for branches, proposed mergers, and various other activities of nonmember insured 

banks for which the prior approval of the Corporation is required. 

During 1973, the numbers of the various special examinations and 

investigations increased by 21 percent, while total examinations of 

main offices declined slightly from the number in 1972 (table 4).

Table 4. BANK EXAMINATION ACTIVITIES OF 

THE FEDERAL DEPOSIT INSURANCE CORPORATION 

IN 1972 AND 1973

A c tiv ity

Num ber

1973 1972

Field exam inations and in v e s tig a tio n s -to ta l.............................................................................................. 19,959 19,626

Exam inations of main offices— to ta l ..................................................................................................... 7,995 8,177

Regular exam inations of insured banks not members of Federal Reserve System ............ 7,863 8,009

Reexaminations or other than regular exam inations ................................................................. 111 148

Entrance exam inations of operating noninsured banks ............................................................ 14 16

Special e x a m in a tio n s ........................................................................................................................... 7 4

Exam inations o f departments and branches ...................................................................................... 7,474 7,738

Exam inations of trust departments ................................................................................................ 1,452 1,748

Exam inations of branches ................................................ ............................................................... 6,022 5,990

Investigations .............................................................................................................................................. 4,490 3,711

New bank investigations ................................................................................................................... 431 280

State banks members of Federal Reserve System ................................................................. 15 15

Banks n ot members of Federal Reserve System ................................................................... 416 265

New branch in ve stig a tio n s................................................................................................................. 1,118 976

Mergers and consolidations ............................................................................................................... 264 220

Miscellaneous investigations............................................................................................................... 2,677 2,235

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10 FEDERAL DEPOSIT INSURANCE CORPORATION

In 13 States the Corporation and the State authorities conduct 

most or all of their supervisory examinations jointly, that is, all 

examiners work as a single team and make a single examination 

report. The Corporation has encouraged the use of joint examinations where State law lends itself to, and the State authorities are in 

agreement with, this procedure.

Late in 1973 the Corporation announced that, at the turn of the 

year, it would begin a 13-month experimental program for decentralizing certain examination activities in selected States. The 

result of several months of planning, the program initially would be 

conducted in the States of Iowa, Georgia, and Washington. In its 

announcement, the Corporation stated that it would rely heavily 

upon the examination reports of the three State Banking Departments as to the financial condition of a substantial percentage of 

the total number of insured nonmember banks in each State, while 

the Corporation itself would withdraw from normal examination 

activity as to those banks. The Corporation will continue, during 

the test period, to examine all nonmember insured banks in the 

three States for compliance with certain Federal laws, including the 

Truth-in-Lending Act, the Fair Credit Reporting Act, the Bank Protection Act, the Bank Secrecy Act, and certain disclosure and equal 

opportunity laws. The Corporation's announcement stated also 

that, following the experimental period, the results of the program 

would be evaluated to determine if the program should be continued in any of three States, expanded to include other States, and 

if so on what conditions, or rejected as a technique in the supervision of State-chartered nonmember banks.

Applications for deposit insurance and branches. Section 6 of the 

Federal Deposit Insurance Act requires that, before approving an 

application for deposit insurance, the Corporation shall consider the 

financial history and condition of the bank, the adequacy of its 

capital structure, its future earnings prospects, the general character 

of its management, the convenience and needs of the community, 

and finally, the consistency of the bank's corporate powers with the 

purposes of the Act. When a national bank receives its charter, or a 

State chartered bank becomes a member of the Federal Reserve 

System, Federal deposit insurance, which is mandatory in either 

case, is granted upon certification by the responsible agency that 

the above criteria have been considered. State banks that are not 

members of the Federal Reserve make application directly to the 

Corporation for deposit insurance.

During 1973, the Corporation approved 243 applications for deposit insurance filed by newly organized banks, and 18 applications 

received from previously noninsured banks. Five applications were 

denied (two of which were subsequently approved following

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SUPERVISORY A C TIV ITIE S 11

amendment of the applications). The number of approvals of deposit insurance was 76 more than in 1972 (Chart C). As in other 

years, certain unit-banking States, notably Florida, Texas, and 

Illinois, accounted for above-average numbers of applications. However, a total of 167 applications were approved for newly established banks in States where Statewide or limited-area branching is 

permitted.

The Federal Deposit Insurance Act requires that the Corporation's approval be obtained before a nonmember insured bank may 

establish or change the location of a branch office. A "branch" is 

defined in section 3(o) of the Act as " . .. any branch place of 

business . . . at which deposits are received, checks paid, or money 

lent." This definition includes tellers' windows and other limitedservice facilities that may not be "branches" under the laws of the 

respective States.

During 1973, the Corporation approved 993 applications for 

branches, or 17 percent more than in 1972. Seven applications were 

denied, two of which were based primarily on the fact that they 

appeared substantially anticompetitive under the facts presented, 

and the remainder on one, or a combination of more than one, of 

the other factors considered.

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12 FEDERAL DEPOSIT INSURANCE CORPORATION

Effective March 1, 1973, the Corporation's Board of Directors, 

through the Director of the Division of Bank Supervision, delegated 

authority to the fourteen Regional Directors to approve applications for de novo branches under certain circumstances. To insure 

uniformity throughout the various regions, certain criteria were set 

forth that an applicant would have to satisfy as a minimum, though 

not necessarily a sufficient requirement, for approval of an application by a Regional Director. The Corporation's Board of Directors 

however, may approve an application even though such application 

fails to meet all specified requirements that are applicable to approvals by Regional Directors. The delegation of authority does not 

include the power of denial; only the Corporation's Board of Directors itself may deny an application for a branch office. During 

1973, a total of 611 applications (including also applications for 

facilities or other limited-power branches), were approved by 

Regional Directors under the delegated authority. Further explanation of the revised procedures may be found on pages 158-159 of 

this report.

Effective April 1, 1973, the Corporation adopted changes in its 

rules and regulations which are designed to improve its application 

procedures for deposit insurance, de novo branches, and office relocations. The revisions relate to procedures for public notification 

of the filing of applications, and expression of views on applications 

by interested persons. A detailed explanation of the revisions to the 

Corporation's rules and regulations is contained on pages 159-160 

of this report.

Mergers. Before 1960, only two categories of mergers involving 

insured banks were subject to the requirement of prior approval by 

a Federal bank supervisory agency. Approval by the Corporation 

was required before an insured bank could enter into a merger, 

consolidation, or deposit assumption transaction with, or convert 

into, a noninsured bank or institution. Approval of the appropriate 

Federal bank supervisory agency was required before an insured 

bank could merge or consolidate with an insured State bank under 

the charter of a State bank or assume liability to pay any deposits 

made in another insured bank where the capital stock or surplus of 

the resulting or assuming bank would be less than the aggregate 

capital stock or aggregate surplus, respectively, of all the merging or 

consolidating banks or of all parties to the assumption transaction. 

The Bank Merger Act of 1960, amending section 18(c), and as 

subsequently amended in 1966, requires that the prior approval of 

the appropriate Federal bank supervisory agency be obtained before 

any insured bank may engage in a merger transaction. The Corporation is the deciding agency whenever the surviving institution is to 

be an insured nonmember bank, or in any merger of an insured 

bank with a noninsured institution.

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SUPERVISORY A C TIV ITIE S 13

Section 18(c) specifies several factors that must be considered by 

the deciding Federal agency before it may approve a merger transaction. In the interest of uniform standards, it is further required that 

before acting on any merger, the deciding agency shall request from 

the other two Federal bank supervisory agencies, and from the 

Attorney General of the United States, a report on the competitive 

factors involved in the case. The Corporation submitted a total of 

165 of these advisory reports in 1973, compared to 158 in 1972. 

The Act requires that descriptive material on each merger case that 

is approved, the basis for approval, and the Attorney General's 

advisory report, be published in the deciding agency's annual report. This information for the year 1973 is contained on pages 

35-153 of this report.

In 1973, the Corporation approved 96 mergers, consolidations, 

and other absorptions, 50 of which involved holding companies' 

acquisitions of banks, or other internal reorganizations. (The merger 

statistics used in Chart D do not include corporate reorganizations 

of individual banking institutions, such as banks in process of form ­

ing one-bank holding companies, and other merger transactions 

which did not have the effect of lessening the number of existing 

operating banks - see table 7, note 1).

Included in the 1973 approvals was one case, in the State of

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14 FEDERAL DEPOSIT INSURANCE CORPORATION

Washington, that had been denied previously by the Corporation, 

first in 1970, and reaffirmed in 1971, in each instance after a finding by the Corporation's Board of Directors that the anticompetitive effects of the proposed merger would not be offset by benefits 

to the public from the merger. In this case, the Corporation, which 

was concerned about existing high levels of banking concentration 

in the State of Washington, sought to draw a line against further 

acquisitions by the largest mutual savings bank in this statewide 

branching State, where the bank already held nearly 23 percent of 

all th rift institution deposits in the State and where alternative 

merger partners were readily available to the institution it sought to 

acquire. Subsequent court action brought by the applicant mutual 

savings bank resulted in decisions by the District Court and United 

States Court of Appeals that were adverse to the Corporation's 

position in the case. In view of these decisions and the determination of the Solicitor General not to seek a review by the United 

States Supreme Court, the Corporation was required, effective 

October 11, 1973, to comply with the order by the District Court 

to approve the merger.

Merger approvals by each of the Federal bank supervisory agencies under section 18(c) of the Federal Deposit Insurance Act in

1973 are detailed in Tables 5 and 6 (excluding internal reorganization mergers— see above and table 5, note 1). The number of banks 

absorbed in all of these approved cases was about 10 percent less 

than in 1972. In the period 1969-1973, for 640 banks merged in all 

approved cases, the "average" bank was a $30.7 million institution 

having two branches. Over three-fourths of merged banks in the 

five-year period had resources of less than $25 million, about 17 

percent had resources of $25-100 million, and less than 7 percent 

had resources of over $100 million. Slightly over one-half of all 

surviving banks prior to the mergers had resources of less than $100 

million, about one-third had resources of $100-500 million, and just 

over 16 percent had resources of over $500 million.

Cease-and-desist and termination-of-deposit insurance proceedings. In most cases of violations of law or regulations, or unsafe or 

unsound banking practices on the part of insured nonmember 

banks, the Corporation is able to gain corrective action by consultation with the bank's management and other supervisory officials. In 

a small number of cases it has been necessary to initiate cease-anddesist and termination-of-deposit insurance proceedings against the 

bank involved.

Cease-and-desist proceedings under section 8(b) of the Federal 

Deposit Insurance Act are initiated by the issuance of a Notice of 

Charges, and after an administrative hearing, or upon the bank's 

formal consent to the issuance of a corrective order, the Corporation may order the bank not only to stop the violation or practice

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SUPERVISORY AC TIV ITIE S 15

Table 5. MERGERS, CONSOLIDATIONS, ACQUISITIONS OF ASSETS AND 

ASSUMPTIONS OF LIABILITIES APPROVED UNDER SECTION 18(c)

OF THE FEDERAL DEPOSIT INSURANCE ACT DURING 1973

Offices operated

Banks N um ber of 

banks

Resources 

(in thousands)

P rior to 

transaction

A fte r

transaction

A L L CASES1

Banks in v o lv e d ................................................................................ 198 $34,802,140 2314 2318

Absorbing b a n k s ...................................................................... 972 31,550,7813 20483 23183

Absorbed banks ...................................................................... 101 3,251,359 266

N a tio n a l................................................................................ 38 1,852,626 144

State member FRS............................................................ 10 259,924 24

N ot member FRS.......................................................... 49 1,100,553 94

Noninsured in s titu tio n s ................................................... 4 5 38,256 4

CASES W ITH R ESULTING B AN K 

A N A T IO N A L B AN K

Banks in v o lv e d ................................................................................ 106 24,730,594 1705 1708

Absorbing b a n k s .......................................................................... 51 22,580,326 1529 1708

Absorbed banks........................................................................ 55 2,150,268 176

N a tio n a l................................................................................ 25 1,648,602 117

State member FRS............................................................ 6 217,926 19

N ot member FRS ............................................................ 24 283,740 40

CASES W ITH RESULTING BAN K 

A STATE BA N K MEMBER OF THE 

FE D E R A L RESERVE SYSTEM

Banks in v o lv e d ................................................................................ 10 187,108 16 16

Absorbing b a n ks...................................................................... 5 120,591 6 16

Absorbed banks........................................................................ 5 66,517 10

N a tio n a l................................................................................ 1 1,804 1

State member FRS............................................................ 3 11,910 3

N ot member FRS............................................................... 1 52,803 6

CASES W ITH R ESULTING B AN K 

NOT A MEM BER OF THE 

FE D E R A L RESERVE SYSTEM

Banks in v o lv e d ................................................................................ 82 9,884,438 593 594

Absorbing b a n k s ...................................................................... 41 8,849,864 513 594

Absorbed banks......................................................................... 41 1,034,5744 804

N a tio n a l................................................................................ 12 202,220 26

State member FRS............................................................ 1 30,088 2

N ot member FRS............................................................... 24 764,010 48

Noninsured in s titu tio n s ................................................... 4 5 38,256 4

10m itte d are corporate reorganizations and other absorptions involving banks that prior to the transaction did not individually 

operate an office in the United States, and mergers of banks w ithin the same holding company.

2The number of absorbing banks is smaller than the number o f cases because a few banks participated in more than one case.

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

transaction, and the number of offices before the firs t and after the latest transaction.

4 ln tw o cases, approval was given fo r an operating bank to acquire one or more branches of other banks; these branches and resources 

are included in this table.

5AII merged institutions were savings and loan associations.

but also to take affirmative action to correct the conditions that 

had resulted. In 1973 the Corporation initiated 10 section 8(b) 

proceedings, eight of which culminated in the entry of a cease-anddesist order (table 7). One of the actions was discontinued during 

the year by a Written Agreement between the Corporation and the 

bank pursuant to which the bank agreed to take the corrective 

action sought by the Corporation. The other action had been submitted to the Board of Directors for a final determination after the 

completion of an administrative hearing. This action was dismissed 

by the Board of Directors in 1974.

In termination-of-deposit insurance proceedings initiated under 

section 8(a), a failure to correct the specified unsafe or unsound

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16 FEDERAL DEPOSIT INSURANCE CORPORATION

Table 6. APPROVALS UNDER SE3TU ) )E THE FEDERAL

DEPOSIT INSURANCE AC j '373,

BANKS GROUPED BY SIZE h STATES 

ACCORDING TO STATUS OF BRANCH BANKING

Absorbing banks Absorbed banks

Num ber of banks by 

size (resources in $ it i l) 1

Number

of

banks

Number

of

branches

Resources

(in

thousands)

Num ber of banks by size 

(resources in $m il)

- 5 5 -1 0 1 0 -2 5 2 5 -1 0 0

Over

100

T o ta l-U .S . 97 101 165 $3,251,359 26 21 29 20 5

- 5 ........................ 2 2 0 8,897 1 1 0 0 0

5 - 1 0 ........................ 2 2 0 5,525 0 0 0 0

1 0 -2 5 ........................ 10 10 9 114,169 0 3 1 0

2 5 -1 0 0 ........................ 29 28 27 496,254 11 5 6 5 1

1 0 0 -5 0 0 ........................ 41 45 36 923,665 13 14 11 1

Over 500 ........................ 13 14 93 1,702,849 2 6 3 3

(A ) Statewide

branching2 39 42 133 2,231,020 8 13 12 3

1 0 -2 5 ........................ 3 3 2 24,157 2 0 1 0 0

2 5 -1 0 0 ........................ 7 6 18 251,067 1 1 0 3 1

1 0 0 -5 0 0 ........................ 19 22 24 436,667 5 7 7 0

Over 500 ........................ 10 11 89 1,519,129 2 5 2 2

(B) Lim ited-area

branching2 54 55 31 809,629 19 12 15 8 1

- 5 ........................ 1 1 0 3,564 1 0 0 0 0

5 - 1 0 ........................ 2 2 0 5,525 0 0 0 0

1 0 -2 5 ........................ 6 6 7 75,286 4 0 1 1 0

2 5 -1 0 0 ........................ 21 21 9 242,655 4 6 2 0

1 0 0 -5 0 0 ........................ 21 22 11 298,879 8 7 4 0

Over 500 ........................ 3 3 4 183,720 0 1 1 1

(C) U n it

banking2 4 4 1 210,710 1 1 1 0 1

- 5 ........................ 1 1 0 5,333 1 0 0 0

1 0 -2 5 ........................ 1 1 0 14,726 0 1 0 0

2 5 -1 0 0 ........................ 1 1 0 2,532 1 0 0 0 0

1 0 0 -5 0 0 ........................ 1 1 1 188,119 0 0 0 1

1See table 7, note 1.

2 For the purposes of this table, 20 States and the D istrict of Colum bia were included in group A, 15 in group B, and 15 in group C.

practices, conditions, or violations, within the designated period 

may result, following an administrative hearing, in a Board of Directors' order t:o terminate the bank's deposit insurance. Should the 

insurance be terminated, insured funds on deposit at the time of 

termination, less any subsequent withdrawals, continue to be insured for a period of 2 years.

In the five termination-of-deposit insurance cases which remained 

open at the end of 1972, three banks voluntarily complied with the 

Corporation's corrective orders, and deposit insurance was therefore 

not terminated. During 1973, the Corporation initiated one new 

proceeding to terminate deposit insurance. Thus, termination proceedings against three banks remained open at the end of 1973

Table 7. CEASE-AND-DESIST ORDERS AND ACTIONS TO CORRECT SPECIFIC UNSAFE 

OR UNSOUND PRACTICES OR VIOLATIONS OF LAW OR REGULATIONS, 1973

Total actions taken: 1 97 1-1973......................................................................................................................................................................... 30

Cease-and-desist orders issued in 1 9731 ................................................................................................................................................... 8

Cease-and-desist orders d iscontinued................................................................................................................................................... 5

Cease-and-desist orders outstanding as of December 31, 1973..................................................................................................... 16

1The FDIC's auth o rity to issue cease-and-desist orders was added in 1966 (12 U.S.C. 1818(b)). The firs t use of this authority 

occurred in 1971.

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SUPERVISORY AC TIVITIES 17

awaiting completion of the correction period, the reexamination of 

the bank, or analysis of its most recent report of examination (table 

8).

Removal proceedings. Pursuant to section 8(e) of the Federal 

Deposit Insurance Act, the Corporation may initiate removal proceedings against an officer, director, or other person participating in 

the conduct of the affairs of an insured State nonmember bank who 

violates a law, rule, regulation, or final cease-and-desist order or 

who engages in an unsafe or unsound banking practice that constitutes a breach of his fiduciary duty and that involves personal 

dishonesty. This action may be taken by the Corporation if it determines that the conduct will cause substantial financial loss or other 

damage to the bank or will seriously prejudice the interests of the 

bank's depositors. Following an administrative hearing, or upon the 

individual's formal consent to the issuance of an order, the Corporation may issue an Order of Removal. During 1973, no Orders of 

Removal were issued. One officer of an insured State nonmember 

bank resigned before a notice to remove him pursuant to section 

8(e) of the Federal Deposit Insurance Act was served upon him.

Suspension proceedings. Under section 8(g) of the Federal Deposit Insurance Act, the Corporation may also suspend or prohibit 

personnel of an insured nonmember bank from participating in the 

affairs of the bank when the officer, director, or other person is 

charged, in an information, indictment, or complaint authorized by 

a U.S. attorney, with the commission of, or participation in, a 

felony involving dishonesty or a breach of trust.

Suspension proceedings are initiated by the issuance of a Notice

Table 8. ACTIONS TO TE RMINATE INSURED STATUS OF BANKS CHARGED 

WITH UNSAFE OR UNSOUND BANKING PRACTICES OR VIOLATIONS 

OF LAW OR REGULATIONS, 1936-1973

Started

Disposition or status 19 36— 19 7 3 1 during 1973

T otal banks against which action was ta k e n ................................................................................................ 221 1

Cases c lo se d ..................................................................................................................................................... 218

Corrections m a d e .................................................................................................................................... 93

Banks absorbed or succeeded by other b a n ks.................................................................................. 73

W ith financial aid of the C o rp o ra tio n ......................................................................................... 64

W ith o ut financial aid of the Corporation ................................................................................. 9

Banks suspended p rio r to setting date of term ination of insured status by Corporation . . . 

Insured status term inated, or date fo r such term ination set by C orporation, fo r

failure to make c o rre c tio n s .....................................................................................................

37

13

Banks suspended p rio r to or on date of term ination of insured status............................... 9

Banks continued in operation2 ..................................................................................................... 4

Formal w ritte n corrective program imposed and 8(a) action d isco n tin u e d ............................. 1

Cease-and-desist order issued and 8(a) action discontinued......................................................... 1

Cases no t closed December 3 1 ,1 9 7 3 ....................................................................................................... 3 1

A ction deferred pending com pletion of correction period, reexam ination of the bank,

or analysis of its most recent report of exam ination.......................................................... 3 1

1l\lo action to term inate the insured status of any bank was taken before 1936. In 5 cases where initial action was replaced by action 

based upon additional charges, only the last action is included.

2 0ne of these suspended 4 months after its insured status was term inated.

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18 FEDERAL DEPOSIT INSURANCE CORPORATION

and Order of Suspension and Prohibition, served on the individual 

involved, that specifies the charges and further orders the individual 

to be suspended and prohibited from participating in the affairs of 

the bank. The Corporation may issue a formal Order of Removal on 

the person if he has been found guilty of the offenses charged. A 

finding of not guilty or other disposition of the charges does not 

preclude the Corporation from thereafter instituting removal or 

prohibition proceedings pursuant to section 8(e).

During 1973 the Board of Directors issued three orders which 

suspended four directors or officers who were charged with felonies 

involving dishonesty or breach of trust from their offices in insured 

State nonmember banks. Thirteen directors or officers charged with 

felonies involving dishonesty or breach of trust voluntarily suspended themselves and four directors or officers resigned from their 

positions with 13 different insured State nonmember banks follow ­

ing indications that the Corporation might initiate suspension proceedings against them if they continued to hold their offices.

Regulation of bank securities. Since enactment of Public Law 

88-467 in 1964, the Federal bank supervisory agencies have had 

responsibility for administering certain registration, reporting, and 

disclosure provisions of the Securities Exchange Act of 1934 with 

respect to insured banks. These provisions are presently applicable 

to banks that have assets of at least $1 million and 500 or more 

stockholders. The covered banks must file an initial registration 

statement, provide supplemental and periodic reports, and submit 

proxy information before use. Reports are required on a monthly 

basis of changes in the holdings of certain stockholders, directors, 

and officers of their bank's securities.

During 1973, the Corporation received securities registration 

statements from 35 nonmember insured banks, bringing the total 

registered number of these banks to 262 compared to 243 a year 

earlier. Additions included 5 registered banks that withdrew from 

the Federal Reserve System and 3 banks that converted from national to State charters. Termination of the registration of 24 banks 

resulted primarily from these banks' merging into other operating 

banks or becoming subsidiaries of bank holding companies.

Changes in bank ownership and loans secured by bank stock. 

During 1973 the Corporation received 524 notices of change in 

control involving insured nonmember banks pursuant to section 7 

of the Federal Deposit Insurance Act as amended in 1964.

The chief executive officer of an insured bank is required by 

section 7 to report to the appropriate Federal supervisory agency 

any change in the bank's outstanding voting stock resulting in a 

change in control of the bank. Any insured bank that makes a loan 

secured by 25 percent or more of the outstanding stock of an 

insured bank (except stock held for more than 1 year or for newly

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Federal Reserve Bank of St. Louis
SUPERVISORY A C TIV ITIE S 19

organized banks) is required to file a report with the Federal agency 

having primary supervisory responsibility for the bank whose stock 

secures the loan. Within the 12-month period following a change in 

control, any change or replacement of the chief executive officer or 

a director must be reported promptly. The bank's report must include a statement of the past and current business and professional 

affiliations of the new chief executive officer or officers.

Truth-in-lending. The Corporation has responsibility for administrative enforcement of the Truth-in-Lending Act (Title I of the 

Consumer Credit Protection Act) with respect to insured banks 

which are not members of the Federal Reserve System. The Act 

requires disclosure of the terms of consumer credit used for personal, family, household, and agricultural purposes, and it regulates 

consumer credit advertising. Enforcement functions are assigned to 

the Corporation's 14 Regional offices, as part of their overall examination and supervisory responsibilities, and to a Consumer Affairs 

Unit in the Division of Bank Supervision, which coordinates the 

regional enforcement activities and also processes inquiries, requests, and complaints referred to the Washington Office.

When a violation of the Truth-in-Lending Act occurs, the Corporation's examiners on the scene may be able to obtain corrective 

action. If this informal approach fails, or if the required corrections 

are extensive, the next step involves sending a letter report to the 

subject bank's board of directors, and a routine supervisory followup by the Regional office. A copy of this letter is sent to the 

appropriate banking authority of the State, with which the Corporation cooperates closely in all such cases. Should all efforts to obtain 

voluntary compliance prove unsuccessful, the Corporation may 

institute proceedings for an order to cease-and-desist, a violation of 

which is enforceable in the United States district court in the distric t in which the bank is located, or ultimately, may begin proceedings to terminate the deposit insurance of the bank. The Corporation issued in 1973 its first cease-and-desist order, consented to 

by the bank, for violations of truth-in-lending provisions. In addition to administrative enforcement, the Corporation routinely refers possible criminal violations of Federal law to the Department 

of Justice.

With respect to the States of Connecticut, Maine, Massachusetts, 

Oklahoma, and Wyoming, the Board of Governors of the Federal 

Reserve System has exempted various classes of credit transactions 

from the disclosure requirements, on grounds that the laws of each 

of these States contain requirements applying to such class of credit 

transactions that are essentially similar to those imposed under Federal law, and in addition, there is adequate provision for enforcement. Primary responsibility in each case for enforcement of the 

applicable State law rests with the appropriate State authorities,

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20 FEDERAL DEPOSIT INSURANCE CORPORATION

however, the Corporation is continuing to assist those authorities in 

the enforcement of Truth-in-Lending requirements with respect to 

insured nonmember banks.

Bank security. The Corporation has responsibility under the 

Bank Protection Act of 1968, with respect to banks under its general supervision, to establish minimum standards for the installation, maintenance, and operation of security devices and procedures 

to discourage certain external bank crimes and to assist in apprehending persons who commit those crimes. In early 1969, the Corporation adopted Part 326 of its rules and regulations to implement 

the Bank Protection Act. Effective November 1, 1973 the Corporation adopted several revisions, which are discussed on page 164 

of this report, to Part 326. The amendments were similar to 

revisions proposed for comment in January by the Corporation, 

the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Federal Home Loan Bank Board, 

that were approved unanimously by the Interagency Coordinating 

Committee.

Part 326.5 of the Corporation's rules and regulations requires 

each bank to submit compliance reports as of the last business day 

of June of each calendar year, and to submit crime reports follow ­

ing the perpetration of a robbery, burglary, or nonbank employee 

larceny. During 1973, the Corporation received 635 external crime 

reports filed pursuant to this regulation.

Corporation training activities. The Corporation's formal training 

programs for bank examiners include a course in the fundamentals 

of banking and bank accounting, for new trainees; a second course 

emphasizing accrual accounting, audit techniques, and bank operations, with a portion devoted to examinations of computerized 

banks, for assistant examiners; and a program centering on credit 

analysis, asset appraisal, bank management simulation, and Corporation policies and objectives, for senior assistant examiners. Included 

also is an advanced course in examination of computerized banks, 

and two courses (basic and advanced) in examining trust departments.

Approximately 1,100 examiners from the Corporation, State 

banking departments, and foreign central banks participated in programs of the Bank Examination School in 1973. The participation 

by the State banking departments involved approximately 150 

examiners under a joint program sponsored with the Conference of 

State Bank Supervisors.

Enrollment of employees in training courses outside the Corporation during 1973 included 100 in graduate and specialized banking 

schools, and others at the American Institute of Banking and in 

miscellaneous programs sponsored by government agencies and private organizations.

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SUPERVISORY A C TIV ITIE S 21

Publications and statistical reports from banks. Each insured 

bank submits a quarterly report of assets and liabilities, and an 

annual report of income and expenses, to the appropriate Federal 

bank supervisory agency. The Corporation receives these reports 

from nonmember insured banks, and also semi-annual reports of 

condition from noninsured banks. Data collected on June 30 and 

December 31 for all banks are published in Assets and LiabilitiesCommercial and Mutual Savings Banks. In the end-of-year condition 

reports for 1973, nonmember insured banks were requested to provide additional information on their holdings of large-denomination 

time deposits, the amounts of standby letters of credit outstanding, 

and their usage of electronic funds transfer equipment.

During 1973, the Corporation implemented a policy, that had 

been announced during the previous year, of making available to 

the public the full contents of the reports of income and condition 

of nonmember insured banks. In providing this service, beginning 

with the 1972 year end reports, the usual procedure is to reproduce 

upon request the reports in the form in which they are received 

from the banks. The Corporation does not bear responsibility for 

the accuracy or completeness of the reports. A nominal charge is 

made for limited numbers of copies, and the charges for microfilm 

rolls of bank reports are based on the costs of reproducing them. 

During 1973, the Corporation filled 1,037 requests for copies of 

Reports of Condition and Income, involving nearly eleven thousand 

documents. The Corporation also continued its policy of filling 

other requests for statistical data on an ad hoc basis, with cost 

reimbursement where appropriate.

The Corporation in 1973 conducted a special survey of deposits, 

on an individual office basis, for all commercial and mutual savings 

banks in the United States which operate more than one banking 

office. Unlike the regular surveys of deposits and deposit accounts 

in all commercial and mutual savings banks which the Corporation 

conducts biennially, this survey did not gather information on numbers or size of deposit accounts. Information obtained in the survey, supplemented with data on deposits in various classes of accounts in unit banks that were available from the regular call reports, was published in Summary o f Deposits in A ll Commercial

and Mutual Savings Banks—June 30, 1973.

Interest rates paid on savings and other time deposits held by 

individuals and businesses at insured nonmember commercial banks 

and FDIC-insured mutual savings banks were surveyed in 1973, 

again on a quarterly basis. Data obtained in these surveys are published by the Board of Governors of the Federal Reserve System. 

The Corporation participated with other Federal bank supervisory 

agencies in the fifth survey of trust assets held in commercial banks, 

and the survey results were published in Trust Assets o f Insured

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22 FEDERAL DEPOSIT INSURANCE CORPORATION

Commercial Banks—1973. The monthly surveys of mortgage rates 

and mortgage lending activity were continued in 1973. Another 

survey collected data on acquisitions and dispositions, as well as 

outstanding balances, of construction and long-term mortgage loans 

of a selected panel of insured commercial banks and mutual savings 

banks.

"N ew Minority-Owned Commercial Banks: A Comparative 

Analysis of Their Early Years of Experience," by John T. Boorman, 

a 50-page report of a study of minority-owned banks that were 

established during 1963 through 1965, was published by the Corporation in 1973. Employing data drawn primarily from the regular 

bank reports submitted to the Federal bank supervisory agencies, 

the study identifies areas of minority bank operations that seem to 

be controlled most efficiently as well as the problem areas that have 

persistently reduced the earnings capabilities of these institutions. A 

survey of banks' holdings of municipal securities conducted by the 

Corporation, the Board of Governors of the Federal Reserve System, and Office of the Comptroller of the Currency, resulted in 

publication in 1973 of a monograph, by Elizabeth Hobby, entitled 

"M aturity Distribution of Obligations of States and Political Subdivisions Held by Insured Commercial Banks, June 30, 1972.”

During 1973 several "Working Papers" were prepared by staff 

members of the Division of Research. These papers are not to be 

construed as official Corporation publications. The analytical techniques used and the conclusions reached are the responsibility of 

the author and in no way represent a policy determination endorsed 

by the Federal Deposit Insurance Corporation.

1973 Working

Paper Number

73— 1 "Computers and the Cost of Producing Banking Services: Planning and Control Considerations" by William A. Longbrake 

(Journal o f Bank Research, Autumn 1973). To provide general 

guidelines for banks deciding whether or not to automate, or to 

determine which services to automate, this paper examines data 

for demand and time deposits and for business, installment, and 

real estate loans from 975 commercial banks. The functional 

cost analysis information presented can assist individual banks 

in planning and controlling operations by allowing them to compare their experience with the average experience of banks that 

have already automated.

73— 2 "Demand for Mutual Savings Bank Deposits in Two Local Economic Markets" by Sandra Cohan (Proceedings o f a Conference

on Bank Structure and Competition, Federal Reserve Bank of 

Chicago, 1971). This paper investigates the responsiveness of 

households to interest rate changes, in terms of deposit flows

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SUPERVISORY AC TIVITIES 23

1973 Working

Paper Number

7 3 -3

7 3-4

73 -5

7 3 -6

1972 Working

Paper Number

72-1

7 2 -2

among mutual savings banks and between these banks and commercial bank time deposits and money market instruments, in a 

local economic market setting. Speed of adjustments to rate 

changes and wealth effects on deposit flows also are examined.

(see paper of this number and monograph above by John T. 

Boorman)

"Interest Rate Ceilings and Consumer Credit Rationing: A 

Multivariate Analysis of a Survey of Borrowers'' by Robert A. 

Eisenbeis and Neil B. Murphy (forthcoming in Southern Economic Journal). This paper analyzes the results of a survey in 

Maine of borrowers whose loan requests were denied as a result 

of the State's "36 Month Rule/' which limits the true annual 

interest rate that finance companies may charge on any loan 

with a maturity exceeding 36 months. The study concludes that 

these rate ceilings tend to reduce the availability of credit, and 

the evidence suggests that in Maine, at least, banks, credit 

unions, and finance companies are real alternative suppliers and 

compete in the same product market.

"Effects of Imperfectly Competitive Loan and Security Markets 

on Bank Asset Management" by David A. Walker. This analysis 

is concerned with the proportions of a bank's assets that should 

be held in cash, investments, and loans to satisfy regulators and 

provide a maximum profit level. It is assumed that the unit 

profits on loans and securities are directly related to the levels 

of these assets. Considering the asset portfolios of previous 

periods, deposit growth, changes in liquidity needs, and other 

changes in a dynamic environment, this study, as compared to 

previous studies, allows excess reserves to play a greater role and 

includes a wider range of market conditions for loans and securities.

"The Allocative Effects of Branch Banking Restrictions on Business Loan Markets" by Robert A. Eisenbeis. A traditional argument against branch banking has been that branching results in a 

reduction in the availability of loans to small locally limited 

businesses relative to large, nonlocally limited firms or that it 

leads to increases in small loan rates. To test the validity of that 

argument, this study examines the lending behavior of banks 

operating under differing branching restrictions. The data show 

that although large banks, in general, make a greater proportion 

of non-local loans than small banks do, large banks in branching 

or limited branching states make a much greater proportion of 

their business loans in local markets than do similar-sized banks 

in unit banking states.

"Dividend Disbursal Practices in Commercial Banking," by 

David A. Walker and M. C. Gupta (forthcoming in Journal o f

Financial and Quantitative Analysis).

"Predicting De Novo Expansion in Bank Merger Cases," by Gary 

G. Gilbert (Journal o f Finance, September 1973).

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24 FEDERAL DEPOSIT INSURANCE CORPORATION

1972 Working

Paper Number

72— 3 "Deposit Costs and Bank Portfolio Policy," by Stanley C. Silverberg (Journal o f Finance, September 1973).

72— 4 "Some Evidence on Intra-Regional Differences in Yields and 

Costs of Mortgage Lending," by Manferd 0. Peterson (Land

Economics, February 1973).

72— 5 "Determining the Relative Significance of Individual and Subsets of Variables in Discriminant Analysis," by Robert A. Eisenbeis, Gary G. Gilbert, and Robert B. Avery (Communications in

Statistics, 1973).

72— 6 "A n Analysis of Federal Regulatory Decisions on Market Extension Bank Mergers," by Gary G. Gilbert (forthcoming in 

Journal o f Money, Credit, and Banking).

72— 7 "A n Evaluation of the Recommendations of the Hunt Commission Related to Housing Expenditures and the Mortgage Market," by John T. Boorman and Manferd 0. Peterson (published 

in revised form in the Journal o f Bank Research, Autumn

1972).

72— 8 "Some Evidence on Household Money Holdings and the Demand Deposit Rate," by Joseph F. Sinkey, Jr.

72— 9 "Taxable Alternatives to Tax-exempt Borrowing," by Panos 

Konstas.

72— 10 "Productive Efficiency in Commercial Banking— The Impact of 

Bank Organizational Structure and Bank Size on the Cost of 

Demand Deposit Services," by William A. Longbrake (forthcoming in the Journal o f Money, Credit and Banking).

72— 11 "The Start-Up Experience of Minority-Owned Commercial 

Banks: A Comparative Analysis," by John T. Boorman and 

Myron Kwast (forthcoming in revised form in the Journal o f

Finance).

72— 12 "The Instability of Savings Flows and Mortgage Lending by 

Financial Institutions," by John T. Boorman and Manferd 0. 

Peterson (Southern Economic Journal, October 1973).

72— 13 "Disclosure Requirements, Adverse Publicity, and Bank Deposit 

Flows," by Joseph F. Sinkey, Jr. and Robert D. Kurtz (Journal

o f Bank Research, Autumn 1973).

72-14 "Differences in Federal Regulatory Agencies'Bank Merger Policies," by Robert A. Eisenbeis (forthcoming in revised form in 

the Journal o f Money, Credit, and Banking).

72— 15 "Competitive Position of Commercial Banks Vis-a-Vis Mutual 

Savings Banks in Massachusetts," by Sandra B. Cohan

72— 16 "Some Empirical Evidence on the Substitutability Between 

Bank and Nonbank Deposits," by Joseph F. Sinkey, Jr.

72— 17 "Computers and the Cost of Producing Various Types of Banking Services," by William A. Longbrake (forthcoming in the 

Journal o f Business).

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SUPERVISORY AC TIVITIES 25

1972 Working

Paper Number

72— 18 “ Market Power and Structure and Commercial Bank Installment 

Lending," by Alan S. McCall (forthcoming in Journal o f

Money, Credit, and Banking).

72— 19 "Functional Cost Analysis for Decision Making in Commercial 

Banks," by William A. Longbrake (published under the title of 

"Statistical Cost Analysis" in Financial Management, Spring

1973).

72— 20 "Murphy's Method for Determining the Weights Assigned to 

Demand Deposit Activity Items— A Clarification and Extension," by William A. Longbrake (Journal o f Bank Research,

Summer 1973).

72— 21 "The Effects of Branching by Financial Institutions on Competition, Productive Efficiency, and Stability— An Examination 

of the Evidence," by Gary G. Gilbert and William A. Longbrake 

(published in two parts in the Journal o f Bank Research,

Autumn 1973 and Winter 1974).

In 1973, the Corporation announced the awarding of Fellowships 

to four Ph.D candidates in the fields of banking, finance, and economics. These Fellowships are intended to promote research in 

banking and related fields as part of a program to improve and 

expand the information available to the bank supervisory agencies 

and the banking community. They are designed to provide graduate 

students an opportunity to devote full time to the preparation of 

their dissertations. Selection was based on the assessment of the 

importance of their proposed research, the relevance of their research to the interests of the Corporation, and the ability of the 

applicants to complete their projects successfully and within the 

time covered by the Fellowships.

ADMINISTRATION OF THE CORPORATION

Structure and employees. The Corporation's 3-member Board of 

Directors consists of two Directors that are appointed to the Board 

by the President of the United States, with the advice and consent 

of the Senate, and the Comptroller of the Currency, also a Presidential appointee. Members appointed directly to the Board serve 6 

years, while the Comptroller of the Currency serves a 5-year term of 

office. Mr. Frank Wilie, who took office and was elected Chairman 

of the Board on April 1, 1970, continued to serve as Chairman 

throughout 1973. Director Irvine H. Sprague resigned from the 

Board on February 15, 1973, and was succeeded, on August 1,

1973, by Mr. George A. LeMaistre. Comptroller of the Currency 

James E. Smith began his term of office on July 5, 1973, succeeding Mr. William B. Camp, who resigned on March 23,1973.

Corporation officials, Regional Directors, and Regional offices, 

are listed on pages v and vi.

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

Total employment of the Corporation was 2,641 on December 

31, 1973, compared to 2,619 a year earlier (table 9). Almost threefourths of the Corporation's personnel are employed in the Regional offices, and of these, over 93 percent are assigned to the Division 

of Bank Supervision, and the remaining 7 percent primarily to the 

Division of Liquidation.

A total of 177 bank examiners resigned from the Corporation 

during 1973, including 55 who left to accept employment in banks. 

The turnover rate for field examiners was 11.2 percent compared to 

8.7 percent for 1972. For all employees, not including temporary 

field liquidation personnel, college students participating in the Corporation's cooperative work-study program, and temporary summer 

personnel, the turnover rate was 13.6 percent compared to 12.3 

percent in 1972.

Executive Secretariat. In early 1973, the office of the Executive 

Secretariat of the Corporation was created. This office, headed by 

the Executive Secretary, was assigned functions formerly performed 

by the Secretary to the Corporation and the Assistant to the Board 

of Directors. The Executive Secretary also performs certain review 

functions for the Board of Directors, and has general supervision 

over the Corporation's Information Office.

FINANCES OF THE CORPORATION

Assets and liabilities. The assets of the Corporation amounted to 

$5,923 million on December 31, 1973 (table 10). Obligations of the 

U.S. Government, at amortized cost plus accrued interest, totaled 

$5,639 million, or about 95 percent of total assets. Various assets 

acquired in receivership and deposit assumption transactions, less 

reserves for losses, amounted to slightly under $180 million. Cash, 

assistance to operating insured banks, land and building at the headquarters location, and miscellaneous assets, totaled $104 million.

Table 9. NUMBER OF OFFICERS AND EMPLOYEES 

OF THE FEDERAL DEPOSIT INSURANCE CORPORATION, DECEMBER 31, 1972 AND 1973

U nit

Total

Washington

office

Regional and other 

field offices

1973 1972 1973 1972 1973 1972

Total ............................................................... 2 ,64 1 * 2 ,61 9 * 691 670 1,950 1,949

D ire cto rs................................................... 3 3 3 3 0 0

Executive O ffic e s .................................. 41 27 41 27 0 0

Legal D iv is io n ......................................... 79 79 70 72 9 7

Division of Bank Supervision............... 1,943 1,923 121 120 1,822 1,803

Division of L iq u id a tio n ........................ 190 211 83 84 107 127

Division o f R esearch............................. 89 84 89 84 0 0

O ffice of the C ontroller ...................... 190 185 178 173 12 12

Office of Management Systems 

and Financial A u d its ...................... 106 107 106 107 0 0

Includes 143 nonperm anent employees on a short-term appointm ent or when actually employed basis in 1973, and 150 in 1972. 

N onperm anent employees include college students participating in the w ork-study program, clerical w orkers employed on a 

tem porary basis at banks in process o f liqu id a tio n , and other personnel.

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FINANCES OF THE CORPORATION 27

Table 10. STATEMENT OF FINANCIAL CONDITION, 

FEDERAL DEPOSIT INSURANCE CORPORATION, 

DECEMBER 31, 1973 

(In thousands)

ASSETS

U.S. Government obligations:

Securities at am ortized cost (face value $5,569,459; cost $ 5 ,5 3 6 ,1 2 5 ). 

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

Assets acquired in receivership and deposit assumption transactions:1

Subrogated claims o f depositors against closed insured b a n ks .............................

Net insured balances o f depositors in closed insured banks, to be subrogated

when p a id -se e related lia b ilit y .............................................................................

Equity in assets acquired under agreements w ith insured b a n k s ........................

Assets purchased o u tr ig h t..............................................................................................

Less reserves fo r lo s s e s .....................................................

Assistance to operating insured banks ...............................

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

Land and office building, less depreciation on building .

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

L IA B IL IT IE S A N D DEPOSIT INSU R AN C E FU N D 2

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

Earnest money, escrow funds, and collections held for oth ers.................

Accrued annual leave of em ployees.................................................................

Due insured banks:

Net assessment income credits available July 1,1974 (see table 12) . 

Other assessment credits available im m e d ia te ly.......................................

Net insured balances of depositors in closed insured banks-see related asset . .

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

Deposit insurance fund, net income accumulated since inception (see table 11).

Total liabilities and deposit insurance fund

$5,554,072

85,444

$ 76,192

1,061

185,611

4,838

$ 267,702 

87,880

283,300

15,760

8,645

$ 179,822 

87,730 

661 

6,959

$5,923,333

3,863

1,144

2,869

299,060

1,061

$ 307,997

5,615,336

$5,923,333

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

deposit assumption transactions, including those assets which have been liquidated, is furnished in table 2.

2 Capital stock was retired by payments to the U.S. Treasury in 1947 and 1948.

NOTE: These statements do not include accountability fo r the i

C orporation acts as receiver or liquidating agent.

s and liabilities o f the closed insured banks fo r which the

The Corporation's liabilities on December 31, 1973 amounted to 

$308 million, of which 97 percent were net assessment credits. 

About $283 million of these credits were to become available on 

July 1, 1974, and the remainder were carry-over, immediately available credits.

The net assets of the Corporation, less its liabilities, comprise the 

deposit insurance fund, this representing the resources initially 

available to the Corporation for protecting depositors in failing 

banks. At the close of 1973, the deposit insurance fund amounted 

to $5,615 million. Section 14 of the Federal Deposit Insurance Act 

authorizes the Corporation to borrow from the U.S. Treasury, and 

the Secretary of the Treasury is authorized and directed to lend, up 

to $3 billion upon a judgment by the Corporation's Board of Directors that the funds are required for insurance purposes. Thus far the 

Corporation has not had occasion to use its borrowing au-thority.

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28 FEDERAL DEPOSIT INSURANCE CORPORATION

Income and expenses. The Corporation's total income in 1973 

was $561 million, of which slightly under 44 percent was derived 

from net assessments, and the remainder almost entirely from interest on its holdings of U.S. Government securities (table 11). Expenses and provision for losses, which rose substantially from the 

level in 1972 primarily because of the additions to loss reserves in 

connection with the failure of United States National Bank, amounted to $104 million. After all expenses and losses, the addition to the deposit insurance fund in 1973 was nearly $457 million.

Insured banks pay deposit insurance assessments at a basic rate of 

1/12 of 1 percent of their deposits (the assessment base is total 

deposits with several adjustments; for example, a deduction is 

allowed for cash items in possession not charged to deposits). This 

basic rate of assessments established by law has remained unchanged since 1935. In 1950, enactment of the Federal Deposit 

Insurance Act included a provision for a credit which has had the 

effect of reducing the assessments paid to an amount substantially 

below the specified rate. The credit, which an insured bank may 

apply against its gross assessments payable in cash in any calendar 

year, is each bank's pro rata share of 66 2/3 of the Corporation's 

gross assessment income after allowance for expenses and losses 

during the immediately preceding calendar year. In 1973, assessments were paid at an effective rate of about 1/26 of 1 percent of

Table 11. STATEMENT OF INCOME AND THE DEPOSIT INSURANCE FUND, 

FEDERAL DEPOSIT INSURANCE CORPORATION,

YEAR ENDED DECEMBER 31, 1973

(In thousands)

Income:

Deposit insurance assessments:

Assessments earned in 1 9 7 3.................................................................................................

Less net assessment income credits to insured b a n k s ...................................................

A djustm ent ol assessments earned in p rio r y e a rs ..........................................................

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

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

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

Expenses and losses:

Adm inistrative and operating expenses:

Salaries....................................................................................................................................

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

O ffice rentals, com m unications, and other expenses ................................................

Provisions fo r insurance losses:

Applicable to aanks assisted in 1973 .............................................................................

Adjustm ents applicable to banks assisted in p rio r y e a r s ............................................

IMonrecoverable irsurance expenses incurred to p rotect depo sito rs-n e t ...................

Total expenses and lo s s e s ............................................................................................

N et addition to the deposit insurance fu n d -1 9 7 3 ....................................................................

Deposit insurance fund, January 1, 1973 ..................................................................................

Deposit insurance fu n d , December 3 1 ,1 9 7 3 , net income accumulated since inception.

$529,350

283,326

$ 39,730 

8,117 

6,601

$ 52,500 

-3 ,9 2 3

$ 246,024

________ - 8 0

$ 245,944 

311,056 

_______3,982

$ 560,982

$ 54,448

48,577 

1,336 

$ 104,361 

$ 456,621 

5,158,715 

$5,615,336

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FINANCES OF THE CORPORATION 29

Table 12. DETERMINATION AND DISTRIBUTION OF 

NET ASSESSMENT INCOME,

FEDERAL DEPOSIT INSURANCE CORPORATION, 

YEAR ENDED DECEMBER 31, 1973 

(In thousands)

Determ ination of net assessment incom e:

Total assessments th a t became due during the calendar year........................................... $529,350

Less:

Adm inistrative and operating expenses...........................................................................

Net additions to reserve to provide fo r insurance losses:

Provisions applicable to banks assisted in 1973 .....................................................

Adjustm ents to provisions fo r banks assisted in p rior y e a rs ...............................

$ 52,500 

-3 ,9 2 3

$ 54,448 

48,577

Nonrecoverable insurance expenses incurred to protect d e p o s ito rs -n e t.............. 1,336

Total deductions........................................................................................................ $104,361

Net assessment income fo r 1973 ................................................................................................... $424,989

D istribution o f net assessment income, December 3 1 ,1 9 7 3 :

Net assessment income fo r 1973:

33 1/3% transferred to the deposit insurance f u n d .....................................................

66 2/3% credited to insured banks....................................................................................

$141,663

283,326

Total ........................................................................................................................... $424,989

A llocation of net assessment income credit among insured banks, December 31 ,1 9 7 3 :

Percentage of 

total assessment becoming 

due in 1973

Credit fo r 1973 ...........................................................................................................................

Adjustm ents of credits fo r p rio r y e a rs ..................................................................................

$283,326

25

53.523%

.005

Total ........................................................................................................................... $283,351 53.528%

total assessable deposits. While the dollar amount of the assessment 

credit allocated to insured banks in 1973 was slightly above the 

amount in 1972, the proportion of gross assessments that was 

credited to banks declined because of larger additions to reserves 

for losses in the year.

The determination and allocation of net assessment income in

1973, and sources and application of funds, are shown in tables 12 

and 13.

Table 13. SOURCES AND APPLICATION OF FUNDS, 

FEDERAL DEPOSIT INSURANCE CORPORATION, 

YEAR ENDED DECEMBER 31, 1973

(In thousands)

Funds provided by: Percent

Net deposit insurance assessments..................................................................................................... $ 245,944 13.3

Income from U.S. Government securities, less amortized net d is c o u n ts ............................... 318,944 17.3

Maturities and sales of U.S. Government securities...................................................................... 1,239,613 67.2

Collections on assets acquired in receivership and deposit assumption transactions............ 30,253 1.6

Increase in assessment credits due insured banks.......................................................................... 10,523 .6

Total funds p ro vided.......................................................................................................... $1,845,277 100.0

Funds applied to:

Adm inistrative, operating, and insurance expenses, less miscellaneous cre d its...................... $ 51,666 2.8

A cquisition of assets in receivership and deposit assumption transactions............................. 236,958 12.8

Purchase of U.S. Government s e c u ritie s ......................................................................................... 1,548,233 83.9

Net changes in other assets and lia b ilitie s ....................................................................................... 8,420 .5

Total funds applied .......................................................................................................... $1,845,277 100.0

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30 FEDERAL DEPOSIT INSURANCE CORPORATION

Income and the deposit insurance fund. The Corporation's income, expenses and losses, and amounts added to the insurance 

fund each year are shown in table 14. Since the beginning of Federal deposit insurance, expenses and losses have amounted to less 

than 12 percent of income, leaving over 88 percent for addition to 

the fund (Chart E).

Total deposits in insured banks have grown at an average rate of 

about 12 percent annually since 1950, but insured deposits have

Table 14. INCOME AND EXPENSES, FEDERAL DEPOSIT INSURANCE CORPORATION, 

BY YEAR, FROM BEGINNING OF OPERATIONS, SEPTEMBER 11, 1933,

TO DECEMBER 31, 1973, ADJUSTED TO DECEMBER 31, 1973

(In millions)

Year

Income Expenses and losses

Net 

income 

added to 

deposit 

insurance 

fu n d 4

Total

Deposit

insurance

assessm ents1

Investments

and

other

sources2

Total

Deposit 

insurance 

losses and 

expenses

Interest 

on capital 

stock3

Adm inistrative

and

operating

expenses

1933- 7 3 .. $6,353.9 $3,458.5 $2,895.4 $738.6 $124.3 $80.6 $533.7 $5,615.3

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

1971 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

1 9 6 9 . . . . . 335.8 144.0 191.8 34.5 1.0 33.5 301.3

1968 , , 295.0 132.4 162.6 29.1 .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 .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

1961 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

195S 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

1951 83.5 54.3 29.2 6.6 6.6 76.9

1950 84.8 54.2 30.6 7.8 1.4 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 1*30.7 107.0 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

1 9 4 2 .......... 69.1 56.5 12.6 10.1 0.5 5.8 3.8 59.0

1941 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

1 9 3 3 -3 4 .. 7.0 (4)

7.0 10.0 0.2 5.6 4 .2 5 - 3 .0

1For the period from 1950 to 1973, inclusive, figures are net after deducting the po rtio n of net assessment incom e credited to 

insured banks pursuant to provisions o f the Federal Deposit Insurance A c t o f 1950, as amended. Assessment credits to insured 

banks fo r these years am ount to $3,408 m illion.

in c lu d e s $11.0 m illio n of interest and allowable return received on funds advanced to receivership and deposit assumption cases by 

the C orporation.

3 Paid in 1950 and 1951, b u t allocated among years to w hich it applies. Initial capital of $289 m illio n was retired by payments to the 

U.S. Treasury in 1947 and 1948.

Assessm ents collected from members o f the tem porary insurance funds which became insured under the perm anent plan were 

credited to th e ir accounts at the term ination of the tem porary funds and were applied tow ard paym ent of subsequent assessments 

becoming due under the perm anent insurance fund, resulting in no income to the C orporation fro m assessments during the 

existence of the tem porary insurance funds.

5 Net after deducting the po rtio n o f expenses and losses charged to banks w ithdraw ing fro m the tem porary insurance funds on June 

30, 1934.

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

rh INCOME, EXPENSES AND LOSSES, AND

ADDITIONS TO THE DEPOSIT INSURANCE FUND, 

FEDERAL DEPOSIT INSURANCE CORPORATION,

Millions a 1 0 - 7 0 Millions 

of Dollars I 9 5 U — I 9 / 0 of Dollars 

600-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------600

717

. . • * / EXPENSES 

Z 'A

AND LOSSES

IN C O M E ^ ..^ ..^ > A D D E D TO

-----------------------" DEPOSIT INSURANCE

FUND'

H — I— I----1— I— I— I— I— I— I— I— I---1— I— I— I— I— I----1— I---1— I— I— Ho

1950 '51 '52 '53 '54 '55 '56 '57 '58 '59 '60 '61 '62 '63 '64 '65 '66 '67 '68 '69 '70 '71 '72 '73

Chart F

Billions 

of Dollars

DEPOSITS IN INSURED BANKS, 

AND THE DEPOSIT INSURANCE FUND, 

1 9 5 0 -1 9 7 3

Billions 

of Dollars nnn

700

•

• ^• 700

600

500

400

300

200

100

600

TOTAL DEPOSITS .•*'

500

400

300

200

— _____— 100

o 0

6 6

4

2

DEPOSIT INSURANCE FUND -____

2

- ________________

1 1 I I 1 1 I 1 1 I 1 I 1 1 I ........................................................... 0 1 1 

1950 '51

I I I I I I I I I I I I I I I I I I ’ I 

'52 '53 '54 '55 '56 '57 '58 '59 '60 '61 '62 '63 '64 '65 '66 '67 '68 '69 '70

I I I 

'71 '72 '73

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

increased somewhat more, primarily because of the statutory increases in the limit of insurance per depositor that occurred in 1966 

and 1969 (Chart F). While the percentage relationship of the deposit insurance fund to insured deposits in this period thus has 

declined, as it has from the level at the beginning of Federal deposit 

insurance, the percentage of the fund to total deposits in insured 

banks has remained relatively stable (table 15).

Audit. Each year, an audit of the financial transactions of the 

Corporation is conducted by the General Accounting Office. A continuous internal audit is provided by the Financial Audits Branch, 

Office of Management Systems and Financial Audits.

Table 15. INSURED DEPOSITS AND THE DEPOSIT INSURANCE FUND, 1934-1973

Year 

(Dec. 31)

Deposits in 

insured banks 

(in m illions)

Percentage of 

deposits 

insured

Deposit

insurance

fund

(in

m illions)

Ratio of deposit 

insurance fund toTotal

deposits

Insured

Total Insured1 deposits

1973 ...................... $766,509 $465,600 60.7% $5,615.3 '.73% 1.21%

1972 ...................... 697,480 419,756 60.2 5,158.7 .74 1.23

1 9 7 1 ...................... 610,685 37 4 ,5684 61.34 4,739.9 .78 1.274

1970 ...................... 545,198 349,581 64.1 4,379.6 .80 1.25

1969 ...................... 495,858 313,085 63.1 4,051.1 .82 1.29

1968 ...................... 491,513 296,701 60.2 3,749.2 .76 1.26

1967 ...................... 448,709 261,149 58.2 3,485.5 .78 1.33

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

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

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

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

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

1 9 6 1 ...................... 281,304 160,3094 57.04 2,353.8 .84 1.474

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

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

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

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

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

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

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

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

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

1 9 5 1 ...................... 178,540 96,713 54.2 1,282.2 .72 1.33

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

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

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

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

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

1945 ...................... 157,174 67,021 42.4 929.2 .59 1.39

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

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

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

1 9 4 1 ...................... 71,209 28,249 39.7 553.5 .78 1.96

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

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

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

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

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

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

1934 ...................... 40,060 18,075 45.1 291.7 .73 1.61

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

determined from speciel reports secured from insured banks.

2 December 20, 1963.

3 December 28, 1962.

4 Revised.

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s

MERGER DECISIONSOF THE CORPORATION

PART TWO

v J

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BANKS INVOLVED IN ABSORPTIONS APPROVED BY 35

THE FEDERAL DEPOSIT INSURANCE CORPORATION IN 1973

S ta te T o w n o r C ity Bank Page

Alabama

Arizona

California

Delaware

Georgia

Illinois

Iowa

Louisiana

Maryland

Michigan

Bay Minette

Sulligent

Tucson

Culver City 

Los Angeles

Oxnard 

San Francisco

Wilmington

Atlanta

Joliet

Council Bluffs 

Goodell

Klemme

Modale

Metairie

Annapolis

Bethesda

Hyattsville 

Massachusetts Cambridge

Newton

Winchendon

Worcester

Cadillac

Chesaning

Detroit

Frankenmuth

Bank of Bay Minette (in organization; 

change title to Baldwin County Bank) 152

Baldwin County Bank 152

Bank of Sulligent 151 

Lamar County Bank (in organization; 

change title to The Bank of Sulligent)151

Union Bank 152

Union Industries, Inc. 152

Charter Bank 125

Lincoln Bank 123

Union Bank 123

Manufacturers Bank 123

Bank of A. Levy 90

The Sanwa Bank of California 125

Endowment Building and Loan

Association 96

Wilmington Savings Fund Society 96

Citizens Trust Company (change

title to Citizens Trust Bank) 151

C.T.B. Bank (in organization) 151

L.J. Bank (in organization;

change title to Louis Joliet Bank) 152

Louis Joliet Bank 152

State Bank and Trust 57 

State Savings Bank (change title

to North Iowa State Bank) 92 

The First National Bank of Klemme 92

Modale Savings Bank 57

First Metropolitan Bank 62

Metropolitan Investment Trust 62

Colonial Bank and Trust Company 127

Bank of Bethesda 71

Bethesda Trust Company 71

Suburban Trust Company 127

University Trust Company (change 

title to University Bank and Trust

Company) 129

Garden City Trust Company 129 

The First National Bank of

Winchendon 40

Guaranty Bank & Trust Company 40

First National Bank of Cadillac 150 

FNB Bank (in organization; change

title to First Bank of Cadillac) 150 

North Central State Bank (in 

organization; change title to The

Cadillac State Bank) 150

The Cadillac State Bank 150

Chesaning State Bank 81 

Bank and Trust Company of

Detroit (in organization) 150 

The Detroit Bank and Trust

Company 150 

Frankenmuth State Bank (change title

to Frankenmuth Bank and Trust) 81

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S ta te T o w n o r C ity B ank Page

Lansing

Moline

Stambaugh

Mississippi Clarksdale

Grenada 

Gulfport 

Houston 

Olive Branch 

Oxford 

Poplarville 

Tupelo 

West Point

New Hampshire Rochester

Somersworth

American Bank and Trust Company 151 

American State Bank (in 

organization) 151

MSB Bank (in organization; change 

title to The Moline State Bank) 152 

The Moline State Bank 152

Stambaugh State Bank (in 

organization; change title to The 

Commercial Bank of Stambaugh) 150 

The Commercial Bank of Stambaugh150

New Jersey

New York

East Brunswick 

Township 

Franklin Township 

Freehold Township

Linden

Piscataway

Union

Fishkill

New York (Queens)

Rochester

Wappingers Falls 

Watertown

Bank of Clarksdale 

Grenada Bank 

Hancock Bank 

Houston State Bank 

Bank of Olive Branch 

Bank of Oxford

Bank of Commerce of Poplarville 

Bank of Mississippi 

The Bank of West Point

Rochester Building and Loan 

Association

Granite State Savings Bank

Mid State Bank and Trust 

Company

Franklin State Bank

The Central Jersey Bank and

Trust Company

Community State Bank and Trust 

Company

The First National Bank 

First New Jersey Bank

Fishkill Savings Bank (change title 

to Mid-Hudson Savings Bank) 

Richmond Hill Savings Bank 

Savings and Loan Association of 

Richmond Hill

The Community Savings Bank of 

Rochester

Wappinger Savings Bank 

Jefferson Savings Bank

North Carolina Davidson

Macclesfield 

Mount Olive 

Sanford

Ohio Carrollton

Middletown

Oxford

Vandalia

116

130

119

130

113

116

119

94,113 

94

79

79

108

101

108

72

72

101

83

63

63

51

83

51

P. B. T. Bank (in organization; 

change title to Piedmont Bank and

Trust Company) 150

Piedmont Bank and Trust Company 150

Merchants & Farmers Bank 106

Southern Bank and Trust Company 106

The Carolina Bank 152 

The Sanford Bank (in organization;

change title to The Carolina Bank) 152

The Carrollton Bank (in organization; 

change title to The Cummings

Bank Company) 153

The Cummings Bank Company 153

The Barnitz Bank 133

The First Citizens Bank 133

The Imperial State Bank 153 

The Ohio State Bank (in

organization) 153

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S ta te T o w n o r C ity Bank Page

Pennsylvania Bangor

Berwick

Butler

Hegins

Lansford

Matamoras

Montgomery

Montoursville

Muncy

Pittsburgh

Pittston

Reading

Shinglehouse

South Williamsport 

Stroudsburg

Wilkes-Barre

Williamsport

South Carolina Greenville

Tennessee

Winnsboro

Cleveland

Elizabethton

Gallatin

Jackson 

Johnson City

Knoxville

42

142

65, 135

98

68

137

First National Bank in Bangor 65

The Berwick Bank 59

First Seneca Bank and Trust 

Company

Tri-Valley National Bank 

First Valley Bank 

The Bank of Matamoras 

First Citizens National Bank 

The First National Bank of Montoursville 

(change title to Bank of Central 

Pennsylvania)

Commonwealth Bank and Trust 

Company

Pittsburgh National Bank 

The Liberty National Bank of 

Pittston

American Bank and Trust Company 

of Pennsylvania 

The First National Bank of 

Shinglehouse

Bank of South Williamsport 

Monroe Security Bank and Trust 

Company (change title to Security 

Bank and Trust Company)

United Penn Bank 

Northern Central Bank and Trust 

Company

139

42

135

142

139

137

98

59

68

152

49, 152 

49

150

150

152

152

153

Crescent Bank and Trust Company 

(in organization; change title to 

Southern Bank and Trust Company 

Southern Bank and Trust Company 

Merchants and Planters Bank

Merchants Bank

Third State Bank in Cleveland (in 

organization)

Citizens Bank

State Bank of Elizabethton (in 

organization; change title to 

Citizens Bank)

Sumner County Bank and Trust 

Company 

Sumner County State Bank (in 

organization; change title to Sumner 

County Bank and Trust Company) 153 

Jackson State Bank 153

The Bank of Jackson (in organization; 

change title to Jackson State Bank) 153 

Hamilton Bank of Johnson City 

Hamilton State Bank of Johnson 

City (in organization; change title 

to Hamilton Bank of Johnson City)

Bank of Knoxville 

First State Bank (in organization; 

change title to The Fountain City 

Bank)

Knoxville Interim Bank (in 

organization)

The Fountain City Bank 

Third State Bank (in organization) 

Volunteer-State Bank

153

153

150

152

151

152

150

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151

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38 FEDERAL DEPOSIT INSURANCE CORPORATION

S ta te T o w n o r C ity Bank Page

Texas

Milan

Mosheim

Pulaski

South Pittsburg

Spring City

Arlington

Beaumont

Carrizo Springs

Carrollton

Dallas

Houston

Irving

Lancaster

Farmers-Peoples Bank 151

Milan Interim Bank (in organization)151 

First Tennessee Bank of Greene 

County (in organization) 153

Mosheim Bank 153

The Union Bank 153

Third State Bank in Pulaski (in 

organization; change title to The 

Union Bank) 153

Hamilton Bank of Marion County 153 

Hamilton State Bank of Marion 

County (in organization; change title 

to Hamilton Bank of Marion County) 153 

Hamilton Bank of Rhea County 153 

Hamilton State Bank of Rhea County 

(in organization; change title to 

Hamilton Bank of Rhea County) 153 

Arlington Bank of Commerce 151

Bowen Road State Bank (in 

organization; change title to Arlington 

Bank of Commerce) 151

Concord State Bank (in organization; 

change title to The Village State 

Bank) 151

The Village State Bank 151

New Union State Bank (in 

organization; change title to Union 

State Bank) 151

Union State Bank 150

Beltline State Bank (in organization; 

change title to The Dallas County 

State Bank) 152

The Dallas County State Bank 152 

American Bank and Trust Company 151 

Cowboys State Bank (in organization; 

change title to Park Cities Bank and 

Trust Company) 151

Grove State Bank 151

Park Cities Bank and Trust 

Company 151

Pleasant State Bank (in organization; 

change title to Grove State Bank) 151 

Twelfth Street State Bank (in 

organization; change title to American 

Bank and Trust Company) 151

Bank of Texas 108

Continental Bank (change title 

to Continental Bank of Texas)

Irving Bank and Trust Company 

Irving Commerce Bank (in 

organization; change title to Irving 

Bank and Trust Company)

Plymouth Park State Bank (in 

organization; change title to Southwest 

Bank and Trust Company) 151

Southwest Bank and Trust 

Company 151

Bank of Lancaster 151

Lancaster State Bank (in organization; 

change title to Bank of Lancaster) 151

108

152

152

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Utah

Vermont

Virginia

Washington

Wisconsin

Malakoff

Midland

Sugar Land

Salt Lake City

West Bountiful 

Barre

Bennington

Bethel

Brattleboro

Burlington

Proctor

Arlington County 

Fairfax County 

Falmouth

Gretna

Lynchburg

Nansemond

Norfolk

Petersburg

Richmond

Spotsylvania 

Court House

Stafford

Williamsburg

Aberdeen

Seattle

Spokane

Allenton

Kewaskum

Bancorp State Bank (in organization; 

change title to Citizens State Bank) 151 

Citizens State Bank 151

Commercial Bank & Trust Co. 153 

Commercial New Bank (in 

organization; change title to 

Commercial Bank & Trust Company) 153 

Highway State Bank (in organization; 

change title to Sugar Land State 

Bank) 151

Sugar Land State Bank 151

Tracy-Collins Bank and Trust 

Company

Valley Bank (in organization)

Valley Bank and Trust Company 

Farmers State Bank

103

150

150

103

The Peoples National Bank of Barre 54

The County National Bank of 

Bennington 86

National White River Bank in Bethel 145 

First Vermont Bank and Trust 

Company

Chittenden Trust Company 

Proctor Trust Company 

Clarendon Bank & Trust 

Woodlawn National Bank 

Falmouth Bank (in organization; 

change title to The Peoples Bank 

of Stafford)

Peoples Bank of Gretna 

United Virginia Bank/Peoples 

of Gretna (in organization)

The Fidelity National Bank 

Bank of Virginia-Southeast 

Bank of Virginia-Tidewater 

Bank of Virginia-Petersburg 

(in organization)

City Bank of Petersburg (in 

organization; change title to City 

Savings Bank and Trust Company)

City Savings Bank and Trust 

Company

Bank of Virginia-Central 

Capital City Bank (in organization; 

change title to Virginia Trust 

Company)

Virginia Trust Company 

Bank of Spotsylvania 

United Virginia Bank of 

Spotsylvania (in organization)

The Peoples Bank of Stafford 

Tidewater Bank and Trust Company 144 

Grays Harbor Savings and Loan 

Association 118

Pioneer Mutual Savings Bank 74

Washington Mutual Savings Bank 118 

Fidelity Mutual Savings Bank 74

Allenton State Bank 77

Bank of Kewaskum 77

54

86

145

44

44

152

153

153

144

122

122

112

152

152

112

150

150

152

152

152

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40 FEDERAL DEPOSIT INSURANCE CORPORATION

Resources

(in

thousands

of dollars)

Banking Offices

I n

operation

T o be

operated

Guaranty Bank & Trust Company

Worcester, Massachusetts

215,427 20 21

to consolidate w ith

The First National Bank of Winchendon

Winchendon

4,352 1

Summary report by Attorney General, November 10,1972

First National is the smallest bank in Worcester County and ranks 151st in 

total deposits out of 152 banks in Massachusetts. The closest branch of Guaranty Bank is located 16 miles southwest of Winchendon; Guaranty Bank is 

opening a branch 13 miles southwest of Winchendon next year. Therefore, it 

appears that the merger may eliminate a limited amount of direct competition, 

although, in view of the small size of First National and the presence of larger 

intervening banking alternatives, the elimination of direct competition does not 

appear significant.

Countywide branching is permitted in Massachusetts and Guaranty Bank 

could enter Winchendon de novo. Guaranty Bank has been branching aggressively in the past 15 years and presently has applications approved or pending 

to operate three additional branches. However, in view of the small service area 

of the acquired bank, and since there are a number of other banks that could 

branch into Winchendon, this merger appears unlikely to have a significantly 

adverse effect on potential competition.

Basis for Corporation approval, January 5, 1973

Guaranty Bank & Trust Company, Worcester, Massachusetts (“ Guaranty"), 

an insured State nonmember bank with total resources of $215,427,000 and 

total I PC deposits of $155,921,000, has applied, pursuant to Section 18(c) and 

other provisions of the Federal Deposit Insurance Act, for the Corporation's 

prior consent to consolidate with The First National Bank of Winchendon, 

Winchendon, Massachusetts ("FNB Winchendon"), with total resources of 

$4,352,000 and total I PC deposits of $3,165,000. The banks would consolidate under the charter and title of Guaranty and, as an incident to the consolidation, the sole office of FNB Winchendon would become a branch of the resulting bank, increasing the number of its authorized offices to 24.

Competition. Guaranty operates a total of 20 offices in Worcester County, 

Massachusetts, and has approval for three additional branches, also in Worcester County. All but one of these branches are located in the central or southern 

portions of the county. Worcester County comprises a large part of central 

Massachusetts, running north and south to the State's borders, and had a 1970 

population of 637,969, up 9.4 percent during the 1960s. The county has a 

considerable volume and range of industrial activity. Guaranty, which is not

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 41

affiliated with any multibank holding company, is the second largest commercial bank in Worcester County, with 22.6 percent of the county's total commercial bank I PC deposits. Worcester County National Bank, the dominant 

local bank, controls 45.7 percent of such commercial bank I PC deposits.

FNB Winchendon operates its only office in the town of Winchendon (1970 

population 6,635) in the extreme northern section of Worcester County, only a 

few miles from the New Hampshire State line. Winchendon has some lumber 

products manufacturing, although there is still agricultural activity as well.

The only office Guaranty has in the northern part of Worcester County was 

acquired by merger in May 1972. This office is located in Athol, about 16 

miles southwest of Winchendon, and is Guaranty's nearest office to FNB 

Winchendon. Most of FNB Winchendon's business is drawn from Winchendon 

and its immediate environs, but even if the relevant local banking market, for 

purposes of analyzing the proposed consolidation, is defined as extending to a 

radius of about 16 miles from Winchendon, thereby including Athol, FNB 

Winchendon would have the fifth largest share of local IPC deposits held by 

seven commercial banks, with 6.2 percent of the total, while Guaranty would 

have the smallest such share, with 3.0 percent of the total. The consolidated 

bank, ranking fourth in this local banking market, would be overshadowed 

locally by the county's largest bank (with 35.0 percent of the market), First 

Safety Fund National Bank, Fitchburg (with 23.8 percent of the market), and 

First National Bank of Athol (with 17.6 percent of the market).

The proposed consolidation would elimate only a small amount of existing 

competition, if any, between Guaranty and FNB Winchendon and should have 

the effect of stimulating competition locally with banks holding a much larger 

share of the relevant banking market.

Massachusetts law restricts branching and merging to the limits of the main 

office county, although multibank holding companies are permitted to operate 

on a statewide basis. Either of the participating banks could, therefore, enter 

the area served by the other through de novo branching. FNB Winchendon has 

neither the financial nor the managerial resources to expand in this manner and 

has never attempted to branch de novo since it was organized in 1864. Guaranty, on the other hand, has the managerial and financial resources, as well as 

the will, to branch de novo throughout Worcester County, but it is unlikely to 

find Winchendon and its environs attractive for this purpose because of its 

limited population and economic activity. Thus, the proposed transaction 

would not eliminate any significant potential for increased competition between the two banks in the future through de novo branching. There would 

remain, moreover, numerous banks headquartered in Worcester County that 

might, through holding company affiliations in the future, be considered equally capable of de novo entry into the Winchendon area if the future growth of 

that area should warrant such facilities.

Statewide, the consolidated bank would hold only 1.7 percent of total 

commercial bank IPC deposits.

Based on the foregoing, the Board of Directors has concluded that the 

proposed consolidation would not, in any section of the country, substantially 

lessen competition, tend to create a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. Guaranty has, and

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42 FEDERAL DEPOSIT INSURANCE CORPORATION

the resulting bank would also have, satisfactory financial and managerial resources and satisfactory prospects for the future. FNB Winchendon has satisfactory financial resources, but it has aging management and has not competed 

aggressively, possibly due to a substantial stock interest held by the Winchendon Savings Bank and two board members in common. The proposed consolidation would resolve this management succession problem, substantially reduce 

the stock interest of the Winchendon Savings Bank and eliminate the interlocks. It would appear that FNB Winchendon's future prospects would be more 

favorable as part of the resulting bank than operating independently.

Convenience and Needs o f the Community to be Served. The proposed 

consolidation would bring to customers of FNB Winchendon a larger commercial bank offering many services not now offered by FNB Winchendon. These 

services include real estate mortgage loans, 90-day notice accounts, term deposits, a full range of trust services, and well organized, highly developed commercial loan skills. In addition, the resulting bank would offer a much larger 

lending lim it ($2 million, as compared with $40,000) and would pay a higher 

rate of interest on passbook savings deposits.

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

T o be

operated

First Seneca Bank and Trust Company

Butler, Pennsylvania

211,826 23 26

to acquire a portion of the assets and assume

a portion of the deposit liabilities of

Pittsburgh National Bank

Pittsburgh

13,764* 3*

Summary report by Attorney General, December 13, 1972

The three branches of Pittsburgh National Bank being acquired by First 

Seneca are located in Aliquippa (population 22,277), Ambridge (population 

11,324), and Rochester (population 4,819), all in Beaver County. These 

branches had, as of September 30, 1972, assets of $13.8 million, total deposits 

of $13.4 million (including IPC demand deposits of $2.5 million), and loans of 

$5.8 million, of which nearly 64 per cent were installment loans and approximately 20 per cent were C&l loans. The instant transaction is part of a plan of 

Pittsburgh National Bank to move its home office to Westmoreland County, 

presumably in order to qualify under Pennsylvania law for additional branching 

rights.

First Seneca Bank and Trust Co. does not operate offices in Beaver County, 

nor, according to the application, does it derive any significant deposit or loan 

business from the county. It does not appear that the transfer of the three 

branches in question from Pittsburgh National Bank to First Seneca Bank and

^Resources and branch offices to be acquired by First Seneca.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 43

Trust Co. will eliminate any significant existing competition. Moreover, while 

First Seneca Bank and Trust Co. now has the ability to open de novo branches 

in Beaver County, its purchase of the three branches, which together hold only 

about 3 per cent of Beaver County deposits, would appear to constitute a 

foothold entry into the county, and thus not eliminate significant potential 

competition.

The overall effect of the instant transaction on competition would not be 

adverse.

Basis for Corporation approval, January 10, 1973

First Seneca Bank and Trust Company, Butler, Pennsylvania ("First 

Seneca” ), an insured State nonmember bank with total resources of 

$211,826,000 and total deposits of $183,236,000, 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 assume liability to 

pay deposits made in, three offices of Pittsburgh National Bank, Pittsburgh, 

Pennsylvania, located in the towns of Aliquippa, Ambridge, and Rochester, 

Beaver County, Pennsylvania ("the Pittsburgh National offices"), with assets 

of $13,764,000 and total deposits of $13,390,000.*

Competition. First Seneca presently operates 23 offices in six counties in 

western Pennsylvania: seven in Lawrence County, six each in Mercer and 

Clarion Counties, two in Venango County, and one each in Butler and Beaver 

Counties. Within these six counties,First Seneca holds approximately 14.6 percent of all commercial bank deposits, ranking second to Mellon National Bank 

and Trust Company, Pittsburgh, Pennsylvania, which holds 15.8 percent. First 

Seneca has no offices in three counties presently open to it under Pennsylvania 

law (Allegheny, Westmoreland, and Armstrong), but it ranks fifth largest 

among commercial banks in its legal nine-county branching and merging area — 

substantially outdistanced in size and number of branch offices by the four 

major Pittsburgh banks.

Pittsburgh National Bank, Pittsburgh, Pennsylvania, currently headquartered 

in Allegheny County, operates 88 offices throughout the Pittsburgh SMSA, 

including the three Pittsburgh National offices sought to be acquired by First 

Seneca. Pittsburgh National proposes to move its main office from Allegheny 

to Westmoreland County so as to gain the legal right to branch into Cambria, 

Somerset, Indiana, and Fayette Counties. Under State law, this move requires 

the divestiture of its present Beaver County offices, since Westmoreland and 

Beaver Counties are not contiguous and a commercial bank in Pennsylvania 

may branch only within its main office county and counties contiguous 

thereto.

Twelve banks operate 39 offices in Beaver County, but the banking market 

is effectively concentrated in the four largest Pittsburgh banks: Mellon National Bank and Trust Company, total resources $4.7 billion; Pittsburgh National 

Bank, a $1.9 billion institution; Western Pennsylvania National Bank, a $1.2 

billion institution; and The Union National Bank of Pittsburgh, an $837 million institution. Among them, these four banks hold 63.7 percent of Beaver 

County deposits, with Mellon National Bank and Trust Company dominating

*Data as of June 30,1972, adjusted for subsequent merger of First Seneca with Lawrence 

Savings and Trust Company, New Castle, Pennsylvania.

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44 FE:DERAL DEPOSIT INSURANCE CORPORATION

with 32.9 percent. Pittsburgh National Bank has achieved the least market 

penetration of the four Pittsburgh banks, holding only 4.6 percent of total 

Beaver County deposits, and ranking seventh in this regard among the 12 banks 

with offices in Beaver County. The existing Beaver County office of First 

Seneca is located in Franklin Township on the northern boundary of the county 

and is approximately 10 miles away from the closest Pittsburgh National office 

(located in Rochester). This existing First Seneca office, with only 0.1 percent 

of Beaver County's total commercial bank deposits, is not a significant competitive factor in Beaver County and its market share indicates that little, if any, 

existing competition between First Seneca and Pittsburgh National Bank would 

be eliminated by the proposed transaction.

The net effect of the proposed transaction would be to transfer the Beaver 

County market share of the second largest bank in Western Pennsylvania to the 

fifth largest. The resulting bank will hold 15.7 percent of the deposits in its 

current six-county service area, but will still rank a distant fifth in Western 

Pennsylvania generally, with the fourth largest bank approximately four times 

its size. The transaction would, however, enable First Seneca to establish a 

strong foothold in Beaver County, substantially increase its competitive posture there by providing Beaver County residents and businessmen a realistic 

banking alternative to the dominant Pittsburgh banks, and last and perhaps 

most importantly, further encourage First Seneca's entry into the populous 

and highly concentrated Pittsburgh SMSA banking market.

Under these c rcuinstances, the Board of Directors is of the opinion that the 

proposed transaction would not, in any section of the country, substantially 

lessen competition, tend to create a monopoly, or in any manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Each of these factors 

is favorable for both participants involved in this proposal, and they are so 

projected for the resulting bank.

Convenience and Needs o f the Community to be Served. The principal area 

affected by the proposed acquistion would be Beaver County. However, as the 

transaction would simply involve the replacement of one bank by another, 

both offering virtually identical services, in existing offices, there would be no 

significant change in the convenience and needs of the Beaver County communities now being served by Pittsburgh National Bank.

On the basis of the foregoing, the Board of Directors has concluded that 

approval of the application is warranted.

Resources

(in

thousands

o f dollars)

Banking Offices

In

operation

T o be

operated

Clarendon Bank & Trust

Arlington County, Virginia

166,395 9 13

to merge with

Woodlawn National Bank

Fairfax County

12,986 4

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Summary report by Attorney General, November 2, 1972

Commercial banking in the Northern Virginia area is highly concentrated; of 

the 22 banking organizations in the area the four largest hold approximately

71.7 percent of total deposits. Financial General is currently the leading banking organization in the Northern Virginia area; as of June 30, 1970, it held, 

through its subsidiaries, Arlington Trust Company, Alexandria National Bank 

and Clarendon, total deposits of $270.2 million or 24.13 per cent of the total 

deposits held by all commercial banks. As of the same date, Woodlawn held 

approximately .67 per cent of total deposits.

The offices of Woodlawn are located at distances of 10 miles or less from 

various banking offices of the respective subsidiaries of Financial General; in 

one instance, an office of Alexandria National Bank is located midway, at a 

distance of 3-4 miles, between Woodlawn's main and branch offices on Richmond Highway. Woodlawn and Financial General's Northern Virginia subsidiaries are direct competitors.

Because of the elimination of existing and potentially increasing competition between Financial General subsidiaries and Woodlawn, and the leading 

position of the former in this area, the proposed merger would have an adverse 

effect on competition.

Basis for Corporation approval, January 10, 1973

Clarendon Bank & Trust, Arlington County, Virginia ("Clarendon"), a State 

nonmember insured bank with total resources of $166,395,000 and total IPC 

deposits of $131,413,000, has applied, pursuant to Section 18(c) and other 

provisions of the Federal Deposit Insurance Act, for the Corporation's prior 

approval of its merger with Woodlawn National Bank, Fairfax County, Virginia 

("Woodlawn"), which has total resources of $12,986,000 and total IPC deposits of $11,070,000, under the charter and title of Clarendon. Permission is also 

requested to designate the present office of Woodlawn at 6911 Richmond 

Highway in Fairfax County as the main office of the resulting bank and to 

establish the existing and approved but unopened offices of both banks as 

branches, after which the resulting bank would have a total of 15 offices.

Competition. Clarendon and Woodlawn, although headquartered in different counties, both operate in the Virginia portion of the Washington, D.C., 

SMSA. Clarendon is headquartered in Arlington County, just across the 

Potomac River to the west of the District of Columbia, and its 9 offices are all 

located there. Woodlawn, which was organized in 1964, is headquartered in 

Fairfax County approximately 8 miles south of Clarendon's main office, and 

has all of its offices in that county. These two counties, plus the independent 

cities of Fairfax, Falls Church, and Alexandria, constitute an area that is hereinafter referred to as "Northern Virginia." Since there is very substantial commutation each day between parts of Northern Virginia and the District of 

Columbia, the Corporation has utilized the District of Columbia plus Northern 

Virginia as the relevant geographic market area for purposes of analyzing the 

antitrust implications of the proposed merger.

Clarendon at present is 55 percent owned by Financial General Bankshares, 

Inc. ("Financial General"), a registered multibank holding company headquartered in the District of Columbia. In addition to its controlling interest in 

Clarendon, Financial General also owns controlling interests in four other

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46 FE-DERAL DEPOSIT INSURANCE CORPORATION

banks in Northern Virginia and the District of Columbia: the $186 million 

Arlington Trust Company (80 percent owned), the $95 million Alexandria 

National Bank (63 percent owned), the $178 million First National Bank of 

Washington (89 percent owned), and the $249 million Union Trust Company 

of the District of Columbia (67 percent owned). Since these five Financial 

General banks today control 16.7 percent of the total deposits held at all 

commercial bank offices in the District of Columbia and Northern Virginia, the 

current application raises a serious question of public policy as to the extent 

to which Financial General should be permitted to expand further in this 

section of the Washington, D.C., SMSA by merger rather than de novo efforts.

In contrast to a slight loss of population in the District of Columbia during 

the 1960s, Arlington County's population increased 6.7 percent, to 174,284 

persons, in 1970, while Fairfax County's population increased by a dramatic

65.5 percent, to 455,021 persons, in 1970. The independent city of Fairfax 

grew in population by 61.7 percent, Alexandria increased in population by 

almost 22 percent, and Falls Church remained relatively stable during the same 

period. Thus, with limited space and relatively mature land development in the 

District of Columbia and those portions of Northern Virginia closest to the 

District, Fairfax County offers the most likely area of future growth in the 

Northern Virginia area. Between 1970 and 1972, Fairfax County outgained all 

other Washington, D.C., suburbs in retail sales and recorded the highest effective per capita purchasing income. The county also has about 15 times the land 

area of Arlington County, with substantial acreage, particularly in the northern 

and western sections of the county, available for development. Clarendon's 

incentive to expand into this fast-growing section of the SMSA is obvious, 

particularly since Arlington County itself is likely to have only the limited 

growth in the future permitted by new transportation facilities and the conversion of older residential areas into commercial sections. Under Virginia law, 

which permits statewide mergers and holding companies but restricts de novo

branching to the.* headquarters county of a bank and any independent cities 

immediately adjacent, Clarendon can obtain the right to branch throughout 

Fairfax County only by merger with a bank that has been in existence 5 years.

Clarendon alone holds about 3.2 percent of all commercial bank deposits in 

the District of Columbia and Northern Virginia, and this figure would probably 

overstate, because of the location of its offices, the business it derives from 

Fairfax County. Woodlawn in the same large area holds only 0.3 percent of 

total commercial bank deposits, but its banking business originates largely in 

southern Fairfax County, where all of its existing offices are located. Thus, 

although the nearest offices of the two banks are 5.8 miles apart in a densely 

populated area (with numerous competing offices between them), the amount 

of existing competition likely to be eliminated between Clarendon and Woodlawn within the relevant local banking market may be viewed as insignificant. 

The same conclusion may be reached as to any existing competition between 

Woodlawn and other Financial General banks in the market, even though two 

offices of Alexandria National Bank are actually closer to Woodlawn offices 

than any office of Clarendon. The deposits held in these various offices are 

clearly an insignificant fraction of the total commercial bank deposits in the 

market. While some existing competition, therefore, between Woodlawn and 

banks affiliated with Financial General is likely to be eliminated by the proposed merger, the amount of this competition appears minimal.

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Within Fairfax County, where Woodlawn has its four existing offices and 

one authorized but unopened office, the proposed merger is likely to have 

procompetitive results. As of June 30, 1972, 20 commercial banks had a total 

of 85 offices in the county.* A t that time, two Financial General subsidiaries, 

the Alexandria National Bank and Arlington Trust Company, each had three 

offices in Fairfax County and these six offices together held only 1.8 percent 

of the IPC deposits held at all 85 commercial bank offices in Fairfax County. 

In addition to Financial General, seven other multibank holding companies 

were represented by one or more banks in Fairfax County, with an additional 

50 offices holding 62.7 percent of the county's total commercial bank IPC 

deposits.** These holding companies included United Virginia Bankshares, 

Inc., with 20.0 percent of such deposits, First Virginia Bankshares Corp., with

17.5 percent of such deposits, Dominion Bankshares Corp., with 8.7 percent of 

such deposits, and Virginia Commonwealth Bankshares, Inc., with 5.0 percent 

of such deposits. Ten banks not formally affiliated with multibank holding 

companies held the remaining 35.5 percent of such deposits in 29 offices. 

These included only two banks of significant size: The Northern Virginia Bank 

with 15.9 percent of such deposits held at 5 offices, and Fairfax County National Bank (a majority of whose shares are controlled by American Security and 

Trust Company, Washington, D.C.), with 8.6 percent of such deposits held at 

nine offices. Woodlawn#s share of these deposits was 2.8 percent. Woodlawn's 

merger into Clarendon should enable the resulting bank, and Financial General 

as an organization, to compete more effectively for deposit, loan, and trust 

business as well as for future de novo branching sites with the six banking 

organizations having a greater share of Fairfax County's commercial banking 

business.

The one troubling aspect of the proposed merger relates to Financial General's present control of commercial bank business in Northern Virginia and the 

District of Columbia as a whole. As previously stated, the five banks it presently controls in Northern Virginia and the District hold 16.7 percent of all 

commercial bank deposits in the combined area— a figure that would be increased to 17.0 percent by consummation of Clarendon's proposed merger 

with Woodlawn. Within this overall market area, Financial General's holdings 

are exceeded only by the 20.8 percent share held by The Riggs National Bank 

(which has no affiliate at all in Northern Virginia). Despite the present policy 

of Financial General to permit the greatest possible competitive rivalry between its affiliated banks, to permit them the widest possible operating autonomy and to minimize public recognition of their common affiliation, the fact 

remains that Financial General's control position permits it to change those 

policies at any time and to have its affiliated banks act collectively as one 

competitive unit rather than several. Under these circumstances, it is clear that 

any proposed acquisition of bank assets by Financial General or any of its 

affiliates in the District of Columbia or Northern Virginia should be reviewed 

with the greatest of supervisory care and should in most cases, if substantial

*These figures have been adjusted for the subsequent merger of Bank of Virginia-Fairfax 

and Bank of Virginia-Potomac, which was consummated on December 29, 1972.

**These figures have been adjusted to include the approved acquisition of Citizens National Bank of Herndon by Fidelity American Bankshares, Inc.

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48 FEDERAL DEPOSIT INSURANCE CORPORATION

bank assets are involved or if less anticompetitive alternatives are readily available and clearly preferable either for Financial General or the bank being 

acquired, be denied.

In this particular case, the increment to Financial General's holdings in the 

Northern Virginia-District of Columbia market is relatively small and insubstantial, and the impact in Fairfax County is likely to be procompetitive. Clarendon or Financial General could initiate the organization of a de novo bank in 

Fairfax County, but Clarendon's merger with such a bank, under Virginia law, 

would have to be postponed 5 years. Only three unaffiliated banks headquartered in Fairfax County have a percentage share of the county's commercial 

bank IPC deposits smaller than Woodlawn's, and there appears little reason 

why any of them should be preferred to Woodlawn, in terms of competitive 

impact, as a vehicle for Clarendon's entry. Clarendon itself cannot branch 

directly into Fairfax County de novo, while Alexandria National Bank (absent 

a change in main office) cannot branch de novo more than 5 miles from the 

city limits of Alexandria. Arlington Trust Company, whose main office is now 

in Fairfax County, can branch de novo throughout the county, but has only 1.4 

percent of the county's total commercial bank IPC deposits. For Woodlawn, 

there appear to be only two Virginia-based multibank holding companies not 

presently operating in Fairfax County or other parts of Northern Virginia that 

might be considered appropriate alternatives to acquisition by a Financial General affiliate, given the low percentage of Fairfax County deposits held by 

Financial General. There are, however, an adequate number of independent 

banks headquartered in Fairfax County among the 20 that have offices there 

that would provide each of these unrepresented holding companies with a 

suitable vehicle fo r e n try if, at some fu tu re date, they desired to move in to this 

growing part of the Northern Virginia-District of Columbia banking market.

In the State of Virginia as a whole, the various Financial General affiliates 

hold only 5.3 percent of all commercial bank deposits in the State, a percentage share that would be increased 0.1 percent by the proposed merger. Six 

banking organizations have a larger share of statewide commercial bank resources than Financial General.

For the reasons stated, the Board of Directors is of the opinion that the 

proposed transaction would not, in any section of the country, substantially 

lessen competition, tend to create a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. Clarendon has adequate financial and managerial resources, as would the resulting bank. The 

economic development of Fairfax County is expected to continue and the 

future prospects for the resulting bank are favorable.

Convenience and Needs o f the Community to be Served. This proposed 

transaction would provide no obvious benefits to the present customers of 

Clarendon, but customers of Woodlawn would have access to a wider range of 

commercial banking services. Services that would be offered by the resulting 

bank but that are not now available to Woodlawn customers include: personal, 

corporate, and agency trust services; 5 percent special savings accounts; 5-3/4 

percent time deposits for accounts under $100,000; credit card services; personal revolving credit program; a much larger lending limit; specialized commercial loan and customer services; and increased operational capabilities from 

improved data processing procedures.

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Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands

o f dollars)

Banking Offices

I n

operation

T o be

operated

Southern Bank and Trust Company

Greenville, South Carolina

124,513 25 26

to merge with

Merchants & Planters Bank

Winnsboro

7,367 1

Summary report by Attorney General, January 8, 1973

The branches of Southern nearest to Merchants are located in the communities of Rock Hill and York, both of which are approximately 50 miles north of 

Winnsboro. There does not appear to be any significant direct competition 

between the two banks which would be eliminated as a result of the proposed 

merger.

Three relatively small independent banks (with aggregate deposits of about 

$14.2 million) presently serve Fairfield County. Merchants is the second largest 

bank (though by only a very narrow margin), and holds approximately 42.5 

per cent of total deposits.

Though South Carolina law permits statewide branching and Southern has 

the resources and capacity to enter the area de novo, the below average growth 

of Fairfield County does not appear to make such expansion attractive at this 

time. In addition, since Southern is the state's sixth largest bank, there are 

larger potential entrants also capable of entering the area de novo. We conclude, therefore, that the proposed merger would not have an adverse effect on 

potential competition.

Basis for Corporation approval, January 22, 1973

Southern Bank and Trust Company, Greenville, South Carolina ("Southern"), a State nonmember insured bank with total resources of $124,513,000 

and total deposits of $106,569,000, has applied, pursuant to Section 18(c) and 

other provisions of the Federal Deposit Insurance Act, for the Corporation's 

prior approval of its merger with Merchants & Planters Bank, Winnsboro, South 

Carolina ("Merchants"), which has total resources of $7,367,000 and total 

deposits of $6,049,000, under the charter and title of Southern. As an incident 

to the proposed transaction, the one office of Merchants would become a 

branch of the resulting bank, increasing the number of its offices to 26.

Competition. Southern, the sixth largest bank in South Carolina, is a regional system operating 25 offices in seven of the State's 46 counties, all located in 

the northwestern section of the State. The only office of Merchants is in 

Fairfield County, which is located in the central portion of the State.

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50 FEDERAL DEPOSIT INSURANCE CORPORATION

The geographic area in which the effects of the proposed merger will be 

most direct and immediate can be approximated by Fairfield County, which 

constitutes the principal trade area of Merchants. Winnsboro, the county seat, 

is located approximately 28 miles north of Columbia, the State capital, and 

100 miles south of Greenville, where Southern is headquartered. The population of Fairfield County decreased 3.4 percent between 1960 and 1970, to 

19,999. During this same period of time, the population of the city of Winnsboro declined 2.0 percent, from 3,479 to 3,411. Fairfield County is a relatively 

undeveloped and economically depressed area that is sparsely populated, with 

only 28.7 people per square mile, as compared to the State average of 85.7. In

1970 the county's total work force averaged 6,800, with an unemployment 

rate of 7.4 percent. Income levels have been consistently below the South 

Carolina average in recent years. The major industrial enterprise for Winnsboro 

and Fairfield County is a textile plant which employs 1,400. Agriculture is of 

secondary and declining importance, with livestock, dairies, and grains being 

the major income producers. Winnsboro serves as the county's retail center and 

only distribution point, but it has limited facilities that do not include any 

large shopping centers. Many of the residents commute to the Columbia metropolitan area for employment.

The only commercial banking offices in Fairfield County are three unit 

banks with total deposits of approximately $15,147,000. Merchants had 45.7 

percent of this market as of June 30, 1972, Bank of Fairfield, Winnsboro, had 

40.0 percent and Bank of Ridgeway, Ridgeway, had 14.3 percent. Ridgeway is 

located 12 miles southeast of Winnsboro, and Bank of Ridgeway derives only a 

limited amount of business from the Winnsboro area. The banking structure in 

Winnsboro reflects a rather balanced competitive situation, but Merchants' 

competitive edge has been declining in recent years. As of December 31, 1968, 

the total deposits held by the two banks in Winnsboro was $7,503,000, of 

which Merchants had 58.0 percent, but as of December 31, 1971, total deposits had increased to $11,141,000, of which Merchants had 52.0 percent.

The closest office of Southern to Winnsboro is approximately 53 miles away, 

and there are numerous offices of other commercial banks in the intervening 

area. The trade areas served by Southern and Merchants are separate and distinct, and there is no existing competition between them that would be eliminated by this proposed transaction.

State law provides for statewide de novo branching so that each of the 

participating banks could legally branch de novo into the trade area of the 

other. This does not seem likely, however. Merchants lacks the financial and 

managerial resources to embark upon a de novo branching program into the 

trade area served by Southern, while Southern, because of economic conditions 

in Fairfield County and the county's lack of growth, would be unlikely to 

branch de novo into Merchants' trade area. Thus, there appears to be no 

significant potential for increased competition between Southern and Merchants 

as a result of de novo branching that would be eliminated by this proposed 

transaction.

Consummation of the proposed merger would have no perceptible effect on 

the commercial bank structure of the State. Southern would remain the sixth 

largest commercial bank in the State (based on June 30, 1972, figures), and its 

share of the State's total commercial bank deposits would be increased from

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3.7 percent to 3.9 percent. The four largest commercial banks in South Carolina, with individual shares ranging from 8.5 percent to 21.2 percent, would 

continue to hold 53.0 percent of the State's total commercial bank deposits.

For the reasons stated, the Board of Directors is of the opinion that the 

proposed transaction would not, in any section of the country, substantially 

lessen competition, tend to create a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. Each of the participating banks has adequate financial resources, as would the resulting bank. 

Southern has satisfactory managerial resources, as would the resulting bank and 

future prospects for the resulting bank are favorable. Significant improvements in Merchants' internal controls and management depth could be expected.

Convenience and Needs o f the Community to be Served. Initially the proposed merger is not expected to provide significant benefits in the trade area 

served by Merchants since few, if any policy changes are anticipated. The major 

additional services to be offered by the resulting bank— a higher lending lim it 

and trust services— are not in significant demand. Eventually, the resulting bank 

can be expected to implement modern banking techniques, institute more 

progressive lending practices, and pay the maximum interest rates allowed by 

law on time deposits. Residents and businessmen in Fairfield County should 

benefit from these changes and also from the more aggressive competitive 

stance likely to be taken locally by the resulting 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

I n

operation

T o be

operated

The Community Savings Bank of Rochester

Rochester, New York

553,077 10 12

to m erge w ith

Jefferson Savings Bank

Watertown

136,738 2

Summary report by Attorney General, January 23, 1973

Under the present New York State Banking Law, neither of the merging 

institutions may branch outside of the banking district in which its home office 

is located. Thus, neither of the parties may branch into the service area of the 

other. This branching restriction, however, will no longer be effective after 

January 1, 1976, when statewide branching will be permitted. Community 

Savings and Jefferson Savings are the largest savings institutions in their respective service areas, and hold very substantial shares of savings deposits therein. 

While after 1976, Community Savings and Jefferson Savings would be potential 

entrants into one another's markets, the existence of numerous larger potential

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52 FEDERAL DEPOSIT INSURANCE CORPORATION

entrants makes the loss of potential competition attending this merger less 

significant.

Basis for Corporation approval, January 31, 1973

The Community Savings Bank of Rochester, Rochester, New York 

("Community"), an insured mutual savings bank with total resources of 

$553,077,000 and total deposits of $497,136,000, has applied, pursuant to 

Section 18(c) and other provisions of the Federal Deposit Insurance Act, for 

the Corporation's prior consent to merge with Jefferson Savings Bank, Watertown, New York ("Jefferson"), also an insured mutual savings bank with total 

resources of $136,738,000 and total deposits of $125,220,000. As an incident 

to the proposed merger, the two offices of Jefferson would become branches 

of Community, increasing the number of its offices to 12. The Corporation, 

upon the request of the Superintendent of Banks of the State of New York, 

has heretofore advised the Attorney General and the other banking agencies of 

the existence of an emergency requiring expeditious action pursuant to paragraph 6 of Section 18(c) of the Federal Deposit Insurance Act. All reports 

requested of these agencies have been received and the publication required by 

the Bank Merger Act has been completed.

Background Information. Community operates a total of 10 offices, all 

located in Monroe County (1970 population 711,917) in New York's Eighth 

Banking District. Its main office is in Rochester (1970 population 296,233), 

the county's seat and largest city. As of December 31, 1971, Community was 

the second largest mutual th rift institution in the Eighth Banking District, with

20.4 percent of the total deposits held by all such institutions in that district.

Jefferson operates its main office and only branch in Watertown (1970 

population 30,787), the county seat and largest city in Jefferson County (1970 

population 88,508), which is located in New York's Fifth Banking District. As 

of December 31, 1971, Jefferson was the largest mutual th rift institution in the 

Fifth Banking District, with 36.9 percent of the total deposits held by all such 

institutions in that district.

Ordinarily, it. would not be possible for Community and Jefferson to consummate the proposed merger under New York law since they are not both 

headquartered in the same banking district or in the same or an adjoining 

county. The State Banking Board, however, on October 4, 1972, acting under a 

provision of law' that empowers it to "make variations from the requirements 

of [the New York Banking law ], provided such variations are in harmony with 

the spirit of the law, if the board shall find that such variations are necessary 

because of the existence of unusual and extraordinary circumstances," authorized the State Superintendent of Banks to approve a merger such as the one 

proposed after making the required findings, based upon a review of Jefferson's 

financial condition and managerial resources. While the Comptroller of the 

Currency has questioned, in his competitive factors report, the legality of the 

variation granted by the State Banking Board, the New York State Banking 

Department has submitted on this point a memorandum of law supporting its 

action. The Corporation's Board of Directors, in turn, has been advised by its 

General Counsel that there has been no judicial interpretation of the provision 

of law under which the State Banking Board acted and that:

" It is an accepted principle of administrative law that a statutory interpretation by the agency responsible for the administration of such statute

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 53

is to be upheld if it is not an irrational or unreasonable interpretation. In

the Matter o f Betty Howard v. George K. Wyman, Commissioner, 28 

N.Y. 2d 434,438 (1971). Accordingly, while the propriety of the exercise by the Banking Board of its authority under § 14.1 (q) in the given 

instance is not free from doubt, a court deciding a challenge to the 

Banking Board's actions could be expected to accord great, and perhaps 

conclusive, weight to the opinion of the [State's] Deputy Superintendent and Counsel, which I find to be neither irrational nor unreasonable.

I believe that the Board of Directors of the Corporation may thus itself 

properly rely on the interpretation given to the New York Banking Law 

by the New York State Banking Department."

Competition. Accordingly, turning to the competitive aspects of the proposed merger, the Corporation finds that the closest offices of the merging 

banks are about 125 miles apart and numerous other cities and towns lie 

between these two locations, including the city of Syracuse. The areas presently served by the two banks do not overlap, and neither bank draws any substantial business from areas served by the other. It is apparent, therefore, that 

no significant competition exists between Community and Jefferson today that 

would be eliminated by the proposed merger.

New York law, on and after January 1, 1976, will permit statewide merging 

and de novo branching for both mutual th rift institutions and commercial 

banks. Subsequent to that date, but not before, Community and Jefferson 

could technically be considered potential competitors since each could then 

branch de novo into geographic areas presently served by the other. Such 

expansion on Jefferson's part is not at all likely, given its present financial 

condition and managerial resources. While Community is one of the larger 

upstate savings banks and might be considered a likely de novo entrant, at least 

in time, into the Watertown market, approximately 30 other mutual savings 

banks larger than Community and Jefferson combined (based on year-end

1971 figures) would also have the legal capacity to enter the Watertown area de

novo after January 1, 1976. Moreover, New York law limits each mutual th rift 

institution to the approval of one de novo branch per year, and Community 

would undoubtedly find many other banking markets in the State more attractive for de novo branching than the Watertown area. The proposed merger, 

accordingly, would eliminate no significant potential for increased competition 

between Jefferson and Community through de novo branching in the foreseeable future.

Finally, the proposed merger would not result in any undue concentration 

of banking resources in New York State as a whole. The resulting bank would 

have less than 1 percent of all mutual th rift institution deposits in New York 

State, and an even smaller percentage share of statewide savings if retail savings 

accounts at commercial banks were included in the base.

For the reasons stated, the Board of Directors is of the opinion that the 

proposed merger would not, in any section of the country, substantially lessen 

competition, 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 Jefferson are inadequate, and its future viability as an 

independent institution is in doubt. Community is an aggressively and ably 

managed mutual savings bank with adequate financial and managerial resources

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54 FEDERAL DEPOSIT INSURANCE CORPORATION

to absorb Jefferson and has favorable future prospects. The banking factors 

present in this application present significant weight in favor of the proposed 

merger.

Convenience and Needs o f the Community. Consummation of the proposed 

merger would maintain existing th rift institution services available to the 

Watertown public, intensify competition locally among mutual th rift institutions in the Fifth Banking District, and provide Jefferson customers with the 

advantages of a stronger, better managed institution noted for its record of 

service to its present customers in the Rochester area.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted. Under Section 18(c) of the Federal Deposit 

Insurance Act, the proposed merger may be consummated on the fifth calendar 

day after the date of this approval.

Resources

(in

thousands

of dollars)

Banking Offices

I n

operation

T o be

operated

First Vermont Bank and Trust Company

Brattleboro, Vermont

107,783 11 12

to merge with

The Peoples National Bank of Barre

Barre

27,468 1

Summary report by Attorney General, December 13, 1972

The closest office of First Vermont to Peoples is located 65 miles southwest 

of Barre in Rutland. In view of this substantial distance between the two 

banks, it appears that no direct competition would be eliminated by the proposed merger.

Under Vermont law, First Vermont could be permitted to enter the BarreMontpelier area by establishing de novo branches. It is the largest Vermont 

bank not already operating in this area, and has the resources to establish de

novo branches in attractive new markets. While the population of Barre itself 

has remained static in recent years, that of Washington County generally has 

continued a modest growth rate. The Barre-Montpelier area, and the populous 

section of the state surrounding the City of Burlington, appear to be among the 

most attractive areas for expansion by First Vermont, which has traditionally 

been oriented toward the southern and central portions of Vermont.

Six banks operate offices in the Barre-Montpelier area served by Peoples. 

Three of these banks, including Peoples, are headquartered in the area, and 

rank first through third in terms of local deposits. Peoples' share, the third 

largest, is about 17 per cent. The other three banks are headquartered in 

Burlington, and, while holding shares of local deposits ranging from 8 per cent 

to 17 per cent, are all substantially larger in overall size than the locally 

headquartered banks.

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The proposed merger would eliminate some potential competition in BarreMontpelier. This anticompetitive effect is lessened by the generally balanced 

competitive structure of banking in the area and the fact that Peoples is not a 

dominant banking force.

Basis for Corporation approval, January 31, 1973

First Vermont Bank and Trust Company, Brattleboro, Vermont ("First Verm o n t" ), a State nonmember insured bank with total resources of 

$107,783,000 and total IPC deposits of $90,975,000, has applied, pursuant to 

Section 18(c) and other provisions of the Federal Deposit Insurance Act, for 

the Corporation's prior consent to merge with The Peoples National Bank of 

Barre, Barre, Vermont ("Peoples"), with total resources of $27,468,000 and 

total IPC deposits of $23,402,000. The banks would merge under the charter 

and title of First Vermont and, as an incident to the merger, the sole office of 

Peoples would become a branch of the resulting bank, increasing the number of 

its authorized offices to 13.

Competition. First Vermont operates 11 offices in southern Vermont, three 

of which are in Windham County (population 33,074, up 11.1 percent since 

1960), its headquarters county. Three branches are in Bennington County 

(population 29,282, up 16.7 percent since 1960), four are in Rutland County 

(population 52,637, up 12.7 percent since 1960), and one is in Windsor County (population 44,082, up 3.8 percent since 1960). First Vermont also has 

supervisory approval for one additional branch in West Brattleboro in Windham 

County. The bank operates no offices in Washington County (the location of 

Peoples' only office) or in any county contiguous thereto. First Vermont is the 

third largest commercial bank in Vermont, with 9.3 percent of the State's total 

commercial bank deposits.

Peoples operates its only office in Barre, Washington County (population 

47,659, up 11.2 percent since 1960). In the local Barre-Montpelier market, 

Peoples faces competition from six other commercial banks including all three 

Burlington-based commercial banks, which are, respectively, the largest, second 

largest, and fifth largest commercial banks in the State. In terms of this local 

market, Peoples holds the third largest share (17.1 percent) of commercial 

bank IPC deposits, with two other local independent banks holding the two 

larger shares of such deposits. Peoples is the 10th largest commercial bank in 

Vermont, with 2.3 percent of the total deposits held by all commercial banks 

in the State.

The State of Vermont (1970 population 444,330, up 14.0 percent since 

1960) is largely rural, but significant changes are occurring. Manufacturing 

activity is on the rise, and tourism and recreation are significant in the State's 

economy. The economy of Washington County includes granite quarrying and 

agriculture, while Montpelier is the State's capital.

The closest office of First Vermont to Peoples' only office is in Rutland, 

some 64 miles southwest, and these offices are separated by rugged terrain. 

Further, there are offices of other commerical banks intervening. It is apparent 

that the proposed merger would eliminate no significant existing competition 

between First Vermont and Peoples.

The effect of the proposed merger in the Barre-Montpelier market should be 

procompetitive in that it will permit Vermont's third largest commercial bank, 

whose influence has heretofore been confined to the southern half of the State,

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56 FEDERAL DEPOSIT INSURANCE CORPORATION

to engage effectively for the first time in direct competition in a local market 

in northern Vermont with the State's three large Burlington-based commercial 

banks.

Vermont law allows statewide merging and de novo branching. Peoples has 

no experience in de novo branching and has never applied for permission to 

establish a branch office in its 70 years of existence. The likelihood of de novo

branching on its part into areas of the State served by First Vermont is considered remote. First Vermont, on the other hand, has the resources and experience to establish new offices successfully, but the existing commercial banking 

structure in Washington County serves to discourage de novo entry by banks 

that are as far removed geographically from the local banking market as First 

Vermont is. There are already 10 offices of seven commerical banks in the 

Barre-Montpelier area, or one for approximately every 4,000 persons, including 

five offices of the State's largest, second largest, and fifth largest commercial 

banks, all of which are based in Burlington. Average income levels in this local 

market are below the statewide averages, and the Vermont averages themselves 

are approximately 10 percent below the comparable national averages. In view 

of the limited population growth in this local banking market, the below-average income levels that prevail, and the number of existing bank facilities available to local residents and businessmen, the proposed merger appears unlikely 

to result in any significant loss of potential competition between First Vermont and Peoples as a result of de novo branching.

First Vermont is the largest commercial bank in southern Vermont, with

24.3 percent of the total deposits held by all commercial banks in the State's 

four southernmost counties. Until now, its activities have been confined to this 

four-county area, but the proposed merger would have no competitive effect in 

this area. It should, however, as previously noted, bring First Vermont into 

direct competition for the first time with the three large Burlington-based 

banks that have all concentrated their past competitive efforts in northern and 

central Vermont. While the proposed merger would increase First Vermont's 

share of the State's total commercial bank deposits from 9.3 percent to 11.7 

percent, its consummation should also encourage an apparent trend toward 

more vigorous competition between commercial banks in northern Vermont 

and those in southern Vermont, each operating on a more broadly-based statewide basis.

Based on the foregoing, the Board of Directors has concluded that the 

proposed merger would not, in any section of the country, substantially lessen 

competition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Both Vermont and 

Peoples have satisfactory financial and managerial resources and satisfactory 

prospects for the future, as would the resulting bank.

Convenience and Needs o f the Community to be Served. The proposed 

merger would not affect commerical banking services offered in any of the 

areas where First Vermont presently operates. Individuals and businesses in the 

Barre-Montpelier area, however, would be benefited to the extent that the 

merger would add another alternative for certain commercial banking services 

now available from the three Burlington-based banks with local offices, including increased lending limits, expanded trust services, and computer services.

Based on the foregoing, the Board of Directors has concluded that approval 

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Resources

(in

thousands

of dollars)

Banking Offices

I n

operation

T o be

operated

State Bank and Trust

Council Bluffs, Iowa

39,423 5 6

to acquire the assets and assume the

liabilities of

Modale Savings Bank

Modale

2,532 1

Summary report by Attorney General, November 10, 1972

The closest offices of the banks involved in this transaction are 23 miles 

apart, and the head offices are 32 miles apart. The two banks have only one 

depositor in common, and do not appear to serve the same area. In view of the 

distance between the banks and the presence of intervening banking alternatives, the proposed merger will not eliminate any significant direct competition.

Under Iowa law, State Bank could enter Harrison County de novo by establishing a banking office with limited facilities, although Iowa does not permit 

branching, or State Bank's parent, Hawkeye, could establish a subsidiary. However, available business in the service area of the acquired bank does not presently appear sufficient to support a de novo subsidiary of Hawkeye. Moreover, 

deposits in Modale Bank are presently a very small proportion of county business. Therefore, it is unlikely that this acquisition would have an adverse effect 

on potential competition.

Basis for Corporation approval, February 14, 1973

State Bank and Trust, Council Bluffs, Iowa ("State Bank"), a State nonmember insured bank with total resources of $39,423,000 and total I PC deposits of $26,917,000, has applied, pursuant to Section 18(c) and other provisions 

of the Federal Deposit Insurance Act, for the Corporation's prior consent to 

purchase the assets of, and assume liability to pay deposits made in, Modale 

Savings Bank, Modale, Iowa ("Modale Bank"), a State nonmember insured 

bank with total resources of $2,532,000 and total IPC deposits of $1,925,000. 

The single office of Modale Bank would become an office of the resulting 

bank, increasing the number of its offices to six.

Competition. State Bank operates five offices in two of the seven counties 

in which it may legally open offices under Iowa law. Four of these offices, 

including the bank's main office in Council Bluffs, are in Pottawattamie County. One office is operated in Mills County, to the southeast. Modale Bank's 

single office is operated in the agricultural town of Modale (population 297) in 

Harrison County, which is to the north of Pottawattamie County.

Hawkeye Bancorporation, Inc., Des Moines, Iowa ("Hawkeye"), a registered bank holding company, controls State Bank. Hawkeye is the third largest 

multibank holding company operating in the State, with 3.3 percent of Iowa's 

total commercial bank deposits.

The competitive impact of the proposal would occur almost exclusively in 

Harrison County, within a radius of 10 to 12 miles of Modale. Harrison County

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(1970 population 16,240, down 7.7 percent from 1960) has an agrarian economy with median family income of $7,076, 15.8 percent below the State average of $8,407. Nine unit banks with total deposits of $46,380,000 operate in 

Harrison County, which has an average of 1,800 persons per banking office. 

Modale Bank is next to last in size in the county, holding 4.9 percent of the 

county's total commercial bank deposits, with the largest bank holding 23.7 

percent. It ranks last among five banks operating in its primary service area, 

with 8.1 percent of service area commercial bank deposits, compared to the 

largest bank's market share of 39.0 percent.

The closest offices of the two banks are 24 miles apart with other banks in 

the intervening area. Even prior to the purchase of all the stock of Modale 

Bank by State Bank's president, there was apparently no actual existing competition between the two banks.

Increased competition between the two banks in the future through additional de novo offices appears remote. State law prohibits the establishment of 

offices in municipalities where a bank or office already exists. Modale Bank's 

limited financial resources and lack of de novo branching experience makes any 

de novo expans on on its part unlikely, while Harrison County's sparse population, declining economy, low income levels, and high ratio of existing offices to 

the population served would make State Bank's de novo entry into any part of 

the county unattractive and unlikely.

State Bank is the third largest commercial bank operating in the Council 

Bluffs service area (24.5 percent of total deposits), the third largest commercial 

bank in Pottawattamie County (19.4 percent of total deposits), and the third 

largest commercial bank in the seven-county area within which it may open 

offices under State law (8.2 percent of total deposits.) Since the two banks 

presently compete in separate markets, the only percentage share that would 

be affected by the proposed transaction would be in the seven-county area 

open to State Bank offices where the resulting bank would hold 8.7 percent of 

total deposits. State Bank would continue to rank third in area deposits in each 

of these areas, far behind each area's lead bank (which in addition is affiliated 

with a large multibank holding company in the State).

Thus, there is no existing competition and no reasonable probability of 

increased competition between the two banks through de novo branching that 

would be eliminated by the proposed acquisition. Local competition in Harrison County should be enhanced by the entry of a vigorous, growing bank. The 

number of banking alternatives in that county would remain unchanged, and 

the proposal would have no material effect on the commercial banking structure in either Harrison or Pottawattamie Counties, in the seven-county area 

open to State Bank for offices, or statewide through the multibank holding 

company form.

For the reasons stated, the Board of Directors is of the opinion that the 

proposed acquisition would not, in any section of the country, substantially 

lessen competition, tend to create a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. Both banks have 

satisfactory financial and managerial resources, as would the resulting bank. 

Future prospects for State Bank are good, but Modale Bank's future as an 

independent institution would most likely be static due to its location in an 

area of economic decline and loss in population.

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Convenience and Needs o f the Community to be Served. Customers of 

Modale Bank would benefit from the higher interest rate on savings deposits 

paid by State Bank, the availability of appreciably higher lending limits and 

trust services.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands

of dollars)

Banking O ffices

In

operation

T o be

operated

United Penn Bank

Wilkes-Barre, Pennsylvania

303,945 15 18

to acquire the assets and assume the

liabilities of

The Berwick Bank

Berwick

20,313 3

Summary report by Attorney General, December 8, 1972

The closest offices of the merging banks are approximately 12 miles apart 

with several banking offices intervening. There appears to be little direct compe titio n between the banks, although th e ir service areas are adjoining. Thus, it 

appears that no more than a limited amount of direct competition will be 

eliminated by the merger.

Berwick Bank's primary service area includes the town of Berwick and the 

immediate surrounding area. In this area there are three banks; Berwick Bank is 

slightly larger than the smallest bank, which has $14.6 million in deposits and 

is substantially smaller than the largest bank, which has $24.7 million in deposits.

Under Pennsylvania law each of the banks may be permitted to branch de

novo into the areas served by the other. While Berwick Bank's size indicates 

that it is not a significant potential entrant into the areas served by United, the 

latter is clearly one of the banks most capable of entering into new markets in 

the general area. However, in view of the static nature of the community of 

Berwick, the likelihood of de novo branching therein would appear to be 

limited.

We note that United has grown through several mergers in the 1960's, 

including the acquisition of a bank in Bloomsburg, Columbia County, in 1964. 

The instant transaction would increase its share of Columbia County deposits 

from about 8 per cent to about 19 per cent. United is among the largest banks 

in neighboring Luzerne County, with about 20 per cent of its deposits; however, its offices are located generally in the northern section of the county, 

away from Berwick.

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Basis for Corporation approval, February 14, 1973

United Penn Bank, Wilkes-Barre, Pennsylvania ("United Penn"), a State 

nonmember insured bank with total resources of $303,945,000 and total IPC 

deposits of $253,502,000, 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 assume liability to pay deposits of, The 

Berwick Bank, Berwick, Pennsylvania, with total resources of $20,313,000 and 

total IPC deposits of $17,193,000. The three offices of The Berwick Bank 

would become branches of the resulting bank, increasing the number of its 

offices to 18.

Competition. United Penn is now operating 15 banking offices. The main 

office and 10 branches are located in Wilkes-Barre and the Wyoming Valley 

area of Luzerne County, including one branch opened in Kingston as a convenience for customers residing there after a flood during Hurricane Agnes destroyed one of the two bridges connecting Wilkes-Barre and Kingston. One 

branch office is also located in Bloomsburg, Columbia County, one in Tunkhannock, the county seat of Wyoming County, and two offices, recently acquired by merger, also in Wyoming County. The Berwick Bank, in addition to 

its main office, operates two branches within the corporate limits of Berwick, 

which is on the north side of the Susquehanna River near the Luzerne County 

border.

The proposed acquisition would have competitive impact only in Columbia 

and Luzerne Counties since The Berwick Bank serves a localized area along the 

Susquehanna River between Shickshinny, 11 miles to the northeast of Berwick, 

and Bloomsburg, about 13 miles to the southwest.

The population of Luzerne County, which comprises the Wilkes-BarreHazleton SMSA, declined 1.3 percent in the decade preceding 1970, from 

346,972 to 342,301. During the same period of time the population of the city 

of Wilkes-Barre declined 7.4 percent, from 63,551 to 58,856. Formerly dependent upon anthracite mining and its transport, the area now has diversified 

industrial activity of consequence. Income levels in Luzerne County are below 

statewide and national averages, although slightly higher than in Columbia 

County. United Penn's Bloomsburg Office is located in a mixed service area, 

there being substantial industries in the town of Bloomsburg, surrounded by a 

prosperous farming area. The population of the town of Bloomsburg increased

9.4 percent between 1960 and 1970, from 10,655 to 11,652.

Between 1960 and 1970, the population of Columbia County increased 

from 53,489 to 55,114, or 3.0 percent, while during the same period, the 

population of the borough of Berwick declined from 13,353 to 12,274, an 8.1 

percent decrease. The localized area from which The Berwick Bank derives 

most of its bus ness is a mix of agriculture, industry, and residences. Average 

income levels in Columbia County are 15 percent below the Pennsylvania 

average.

The local banking market that would be most affected by this proposed 

transaction may be approximated by the central portion of Columbia County 

and the boroughs of Shickshinny and Mocanaqua located in the west-central 

portion of Luzerne County. This market area extends east and west from 

Berwick roughly 12 miles. Bounded by hilly terrain on the north and the 

Susquehanna River and hilly terrain to the south, the flow of traffic is along

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 61

the river from Shickshinny to Bloomsburg. A t present there are nine commercial banks operating 17 offices in this local banking market. The Bloomsburg 

office of United Penn holds 8.7 percent of the total commercial bank IPC 

deposits in these 17 offices, while The Berwick Bank ranks third with 12.1 

percent. The largest share, held by a bank located in Bloomsburg, approximates

22.6 percent of such deposits. The Berwick Bank is the second largest of three 

commercial banks operating in the borough of Berwick.

The nearest offices of the two banks are about 12 miles apart, with six 

offices of five other commercial banks intervening. While both banks operate in 

the relevant banking market today, so that some existing competition is likely 

to be eliminated by the proposed transaction and concentration levels within 

the market would rise, it is the Corporation's view that neither factor would 

produce a substantial lessening of competition. The separation of the nearest 

offices of the two banks, with competitive offices intervening, limits the actual 

volume of direct competition to be eliminated, while a relatively sparse population with below-average income levels would continue to be served by a substantial number of competing banks, including one with a larger share of the 

commercial bank IPC deposits in the market.

While Pennsylvania law would legally entitle either bank to branch de novo

into areas presently served by the other, this does not appear to be a likely 

development under the circumstances presented. The Berwick Bank has 

relatively limited resources, both financial and managerial, with which to enter 

the Wilkes-Barre-Hazleton SMSA, where it would encounter competition from 

much larger banks, even if it found the local economy and growth prospects of 

the SMSA to be inviting. United Penn clearly has the capacity and resources to 

open a de novo branch in the Berwick area, but it is unlikely to do so in view 

of the static economy there, the population presently being served by the five 

banking offices in Berwick (about 2,500 persons for each office), and the 

below-average income levels that prevail. The Corporation concludes that the 

proposed transaction would eliminate no significant potential for increased 

competition in the future between United Penn and The Berwick Bank as a 

result of de novo branching.

Within the eight-county area where United Penn may legally establish 

branches— its greatest potential market— 74 commercial banks operate 217 offices. A Scranton-based bank held the largest share of this market, with 13.2 

percent of the area's total commercial bank IPC deposits. The second largest 

share, 10.3 percent, was held by United Penn, and its share after consummation of the proposed purchase and assumption would be 11.0 percent.

Under these circumstances, the Board of Directors is of the opinion that the 

proposed transaction would not, in any section of the country, substantially 

lessen competition, tend to create a monopoly, or in any manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. The resulting bank 

would have adequate financial and managerial resources. The future prospects 

for the resulting bank are favorable.

Convenience and Needs o f the Community to be Served. This proposed 

transaction would have virtually no effect in the trade areas now served by 

United Penn. Customers of The Berwick Bank would benefit from a full range 

of specialized lending services, a considerably larger lending limit, trust services, 

and the availability of larger denomination certificates of deposit issued at 

maximum rates of interest allowed by current regulations.

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62 FEDERAL DEPOSIT INSURANCE CORPORATION

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

T o be

operated

First Metropolitan Bank

Metairie, Louisiana

26,975 3 3

to merge with

Metropolitan Investment Trust

Metairie

228

Summary report by Attorney General, October 10, 1972

Metropolitan Investment Trust, a non-financial institution, was organized 

and is controlled by share holders of First Metropolitan Bank, for the purpose 

of owning and holding certain property currently occupied and used as one of 

the bank's branch offices. As a result of this merger the Investment Trust 

would be extinguished and First Metropolitan Bank would acquire the Trust's 

capitalization and succeed to ownership of the premises housing the bank's 

Airline Highway branch. As such the proposed merger would have no effect on 

competition.

Basis for Corporation approval, March 1, 1973

First Metropolitan Bank, Metairie, Louisiana ("Bank"), an insured State 

nonmember bank having total resources of $26,974,500 and IPC deposits of 

$18,149,100, has applied, pursuant to Section 18(c) and other provisions of 

the Federal Deposit Insurance Act, for the Corporation's prior consent to 

merge with the Metropolitan Investment Trust, Metairie, Louisiana ("Trust"), a 

noninsured, nonbanking institution having total resources of $227,500, under 

the charter and title of Bank. No additional banking offices are involved in this 

merger, and the resulting bank would continue to operate Bank's present three 

offices.

Trust's principal assets consist o f a building occupied by Bank's Airline Park 

Branch and the bank telephone equipment. The proposed merger would result 

in the transfer of ownership to Bank of its Airline Park Branch building and the 

bank telephone equipment, subject to all of Trust's debt. Trust would go out 

of existence as a corporate entity.

Competition. Inasmuch as the proposed merger is essentially a technical 

reordering of the affairs of two entities controlled by the same interests, there 

can be no effect on existing or potential competition, or on the structure of 

banking in any area. Further, Trust is a nonbanking corporation, and this 

merger would not change in any way the competitive stance of Bank or of any 

other bank.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 63

Based on the foregoing, the Board of Directors is of the opinion that the 

proposed merger would not, in any section of the country, substantially lessen 

competition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Each of these factors 

has been resolved favorably to Bank and the resulting bank, and by extension 

to Trust inasmuch as its existence is dependent upon Bank.

Convenience and Needs o f the Community to be Served. The proposed 

merger will have no effect on the convenience and needs of any community. 

The resulting bank will offer the same services from the same locations and 

with the same personnel.

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

T o be

operated

Richmond Hill Savings Bank

New York (Queens), New York

345,094 4 5

to merge with

Savings and Loan Association of

Richmond Hill

New York (Queens)

28,807 1

Summary report by Attorney General, January 24, 1973

The Savings and Loan Association of Richmond Hill is located only a few 

blocks from the Liberty Avenue Office of RH Bank, and only about one mile 

from the latter's main office. It is apparent that the merging parties are direct 

competitors for savings deposits and mortgage loans. Accordingly, the proposed merger would eliminate existing competition.

The merging institutions hold approximately 4 per cent and 0.4 per cent 

of total deposits in th rift institutions in Queens County. These percentages 

understate the competitive effects of the proposed merger since its primary 

effect will be in the narrower vicinity of Richmond Hill. The application does 

not contain sufficient data to estimate precise market shares in a geographic 

area more limited than Queens County as a whole. However, the resulting bank 

will still face substantial competition from other savings banks located within a 

mile or two of Richmond Hill.

Basis for Corporation approval, March 19, 1973

Richmond Hill Savings Bank, New York (Queens), New York ("Savings 

Bank") (total resources $345,094,000; total deposits $319,289,000), an insured mutual savings bank, has applied, pursuant to Section 18(c) and other 

provisions of the Federal Deposit Insurance Act, for the Corporation's prior 

approval of its merger with Savings and Loan Association of Richmond Hill,

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64 FEDERAL DEPOSIT INSURANCE CORPORATION

New York (Queens), New York ("S& L")(total resources $28,807,000; total 

deposits $26,324,000), under the charter and title of Savings Bank. As an 

incident to the merger, the sole office of S&L would be established as a branch 

of the resulting bank, increasing to six the total number of its approved offices.

Competition. Savings Bank is headquartered in Richmond Hill, a residential 

section in the east-central section of Queens County (1970 population 

1,986,473, up 9.8 percent from 1960), New York City. It operates three 

branches, two of which are in Queens County at locations respectively 1 mile 

south and 8 miles northeast of the main office, and one of which is located in 

Baldwin, a residential community in Nassau County some 12 miles southeast of 

the main office. A fourth branch, also in Nassau County, has been approved by 

the supervisory authorities and will be opened in Floral Park, some 9 miles east 

of the main office.

S&L has its sole office in the Richmond Hill section of Queens County, 1 

mile south and less than 1 mile east, respectively, of Savings Bank's main office 

and nearest branch.

Savings Bank held approximately 4.4 percent of the total deposits held at all 

mutual savings bank and savings and loan association offices in Queens County 

as of June 30, 1972. S&L at December 31, 1971, held approximately 0.4 

percent of the total deposits held at all mutual savings bank and savings and 

loan association offices in Queens County. The resulting institution would rank 

sixth in deposit size among all mutual thrift institutions headquartered in 

Queens County and 41st among the 93 such institutions headquartered in New 

York City, with less than 1.0 percent of the deposits of all such institutions.

Because of S&L's location in close proximity to two of Savings Bank's 

offices, some existing competition between the two institutions would be eliminated by the proposed merger. The anticompetitive aspects of the transaction 

(which are confined to Richmond Hill) are mitigated by the very small size of 

S&L and the significant competition that the resulting bank would continue to 

face from mutual th rift institutions located elsewhere in the greater New York 

City area. A total of eight offices of competing th rift institutions, including an 

office of the $1.9 billion-deposit Emigrant Bank, are convenient alternatives 

for residents of the densely populated Richmond Hill area who seek th rift 

services locally, while the presence of numerous offices of th rift institutions in 

the Borough of Manhattan, to which many residents of the Richmond Hill area 

commute for employment by subway, bus, and automobile, also serves to 

broaden the public's choice of th rift institution alternatives.

Any loss of potential competition between the two institutions through de

novo branching must be considered inconsequential. S&L has not branched at 

all in almost 50 years of existence, while Richmond Hill is completely open, 

under New York law, to more than 40 mutual th rift institutions larger in size 

than the resulting bank.

Similarly, the proposed merger would have no perceptible effect on the 

structure of th rift institution competition within the greater New York City 

area.

For the reasons stated, the Board of Directors is of the opinion that the 

proposed merger would not, in any section of the country, substantially lessen 

competition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 65

Financial and Managerial Resources; Future Prospects. The financial and 

managerial resources of both institutions are adequate, as would be those of 

the resulting bank. Future prospects of the resulting bank would be favorable.

Convenience and Needs of the Community to be Served. The general public 

is likely to derive few benefits from the proposed merger. Customers of S&Lf 

however, would benefit from larger lending resources, a higher interest (dividend) return on regular passbook savings (5 percent per annum compared to 

4— 1/2 percent), the institution of day-of-deposit-to-day-of-withdrawal deposit 

accounts, and the availability of student loans, property improvement loans, 

and savings bank life insurance at the S&L location.

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

T o be

operated

First Valley Bank

Lansford, Pennsylvania

314,344 20 23

to merge with

First National Bank in Bangor

Bangor

30,023 3

Summary report by Attorney General, January 8, 1973

The nearest of First Valley's offices to those of Bangor Bank are located in 

Bethlehem in Northampton County about 17 road miles southeast of Bangor 

Bank's Martins Creek branch and about 27 miles from Bangor. Several offices 

of competing banks, primarily in and around the City of Easton, intervene. The 

merging banks draw very limited banking business from each other's service 

area, and it appears that no significant existing competition would be eliminated by the proposed merger.

Pennsylvania law permits commercial banks to establish de novo branches in 

the county in which they are headquartered and all counties contiguous thereto. Because of this limitation, First Valley and two other large banks headquartered in Allentown appear to be the most capable potential entrants into new 

markets in Northampton County. First Valley, already a leading bank in the 

Bethlehem area of Northampton County, presently has an application pending 

for a new branch in Easton, which will enhance its ability to penetrate the 

northern part of the county where Bangor Bank is located. Therefore, although 

the population and economy of northern Northampton County would not appear to support extensive de novo branching in the near future, the proposed 

merger would eliminate some potential competition.

Basis for Corporation approval, March 19, 1973

First Valley Bank, Lansford, Pennsylvania ("Valley Bank"), a State nonmember insured bank with total resources of $314,344,000 and total IPC

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66 FEDERAL DEPOSIT INSURANCE CORPORATION

deposits of $265,355,000, has applied, pursuant to Section 18(c) and other 

provisions of the Federal Deposit Insurance Act, for the Corporation's prior 

consent to merge with First National Bank in Bangor, Bangor, Pennsylvania 

("FNB Bangor"), with total resources of $30,023,000 and total IPC deposits of 

$26,058,000.* The banks would merge under the charter and title of Valley 

Bank, and. the three offices of FNB Bangor would become branches of the 

resulting bank, increasing the number of its authorized offices to 24.

Competition. Valley Bank now operates a total of 20 offices; 11 are in 

Northampton County, four are in Luzerne County, two are in Carbon County, 

and three are in Lehigh County. Eleven of these branches were established de

novo, while the others have been acquired over the years by merger. One more 

de novo branch, also in Northampton County, has been approved but is not yet 

open. Valley Bank is presently serving four separate trade areas: the Allentown-Bethlehem area, the Lansford-Nesquehoning area, the Kingston area, and 

the Hazleton-Freeland area. The Allentown-Bethlehem area contains 14 offices 

of Valley Bank that are concentrated in eastern Lehigh County and western 

Northampton County, principally in and around these two cities. The economy 

of eastern Lehigh County and western Northampton County is diversified but 

is centered in Bethlehem Steel Company and related plants. Future prospects 

are favorable.

FNB Bangor operates three offices in the northeastern section of Northampton County. In addition to the main office and one branch in Bangor, a 

third office is operated in Martins Creek, 5 miles south of Bangor and approximately 8 miles north of Easton. Bangor is one of several small towns clustered 

in this remote part of Northampton County and has no significant ties with the 

Allentown-Bethlehem area. Most of the towns declined in population during 

the 1960s. The population of Bangor, for example, was 5,425 in 1970, a 

decrease of 5.9 percent from 1960. The slate industry, once the area's major 

activity, has become dormant, and garment manufacturing is gaining in importance. Further economic development is dependent upon the future of the 

textile industry.

The Blue Mountain range forms a natural barrier to the north of Bangor 

and, with a poor road system, keeps the flow of traffic into adjacent Monroe 

County to a minimum. The flow of traffic is south to Easton, the county seat 

of Northampton County, where employment and shopping needs can be satisfied. The household median income for 1971 for the city of Easton was 

$7,336, as compared to the State average of $8,613. Income levels in and 

around the Bangor area are probably similar to those in Easton rather than to 

the higher levels that prevail in Bethlehem. The Valley Bank office closest to 

the Martins Creek office of FNB Bangor is about 16 miles to the southwest in 

Butztown outside Bethlehem. The two offices, and the two banks, because of 

distance, relatively poor highway systems, and other intervening alternate 

banking facilities, serve separate banking markets. Their proposed merger, accordingly, would eliminate no existing direct competition between them.

The competitive impact of this proposed merger would be felt principally in 

the northeastern part of Northampton County bounded by Easton, Pennsylvania, and Phillipsburg, New Jersey, to the south, Stroudsburg and Portland

*Figures as of June 30, 1972, but adjusted to reflect Valley Bank's acquisition in October 

1972 of Citizens Bank of Freeland, Freeland, Pennsylvania.

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to the north, Interstate Highway 81 to the west, and the Delaware River to the 

east. Within this area, 13 commercial banks operated a total of 27 offices as of 

June 30, 1972. FNB Bangor is the third largest of these banks in terms of area 

IPC deposits, holding 9.1 percent of the total, but it is far outdistanced by 

Easton National Bank and Trust Company, with 32.8 percent of all such deposits. The latter is also one of FNB Bangor's most immediate competitors, 

with a branch office in nearby Wind Gap. The proposed merger would not 

affect the concentration of banking resources in this local banking market, but 

should serve to stimulate competition locally, particularly with this Eastonbased bank.

Legally, Valley Bank could branch de novo anywhere in Northampton 

County, but de novo expansion in the northeastern section of the county 

(except possibly in the city of Easton itself) does not seem likely in view of the 

relatively stagnant economy, declining population, and the number of banking 

offices presently located in the market. Moreover, if de novo branching into 

Easton should become desirable, only a limited number of approvals appear 

likely, and there are two sizeable banks in Allentown as well as Valley Bank 

that must also be considered potential de novo entrants. Similarly, while FNB 

Bangor could branch de novo into the Allentown-Bethlehem area, this does not 

seem probable in view of the number of banking offices there at the present 

time, the intensity of competition to be expected from much larger banks, and 

its relatively limited managerial and financial resources. Accordingly, while 

both institutions have successful de novo branching experience, there appears 

to be no significant potential for increased competition between Valley Bank 

and FNB Bangor as a result of de novo branching that would be eliminated by 

their proposed merger.

Since relocation of its main office to Carbon County, the largest potential 

trade area for Valley Bank consists of the six counties where it may legally 

establish branches: Carbon, Northampton, Lehigh, Monroe, Schuylkill, and 

Luzerne. Within this area, as of June 30, 1972, there were 70 commercial 

banks operating a total of 250 offices with total deposits of $3,188 million. 

The First National Bank of Allentown held the largest share of this market, 

with 10.7 percent of total deposits. The second largest share, 8.8 percent, was 

held by Valley Bank, and its share after consummation of the proposed transaction would be 9.6 percent. The proposed transaction would not have a 

significant impact on the concentration of banking resources in this larger area. 

It would remain relatively unconcentrated in comparision with other sections 

of Pennsylvania.

For the reasons stated, the Board of Directors is of the opinion that the 

proposed transaction would not, in any section of the country, substantially 

lessen competition, tend to create a monopoly, or in any manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. The resulting bank 

would have adequate financial and managerial resources. The future prospects 

for the resulting bank are favorable.

Convenience and Needs o f the Community to be Served. This proposed 

transaction would have virtually no effect in the trade areas now served by 

Valley Bank. In the trade area of FNB Bangor the proposed merger would 

provide residents and businessmen with a full range of commercial bank services, including trust services, computer services, a significantly higher lending

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68 FEDERAL DEPOSIT INSURANCE CORPORATION

limit, and a broader range of loans, including a credit card plan. To the extent 

such services are now offered by Easton National Bank and Trust Company, 

the public should benefit from having another competitor conveniently available also offering these services.

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

T o be

operated

Northern Central Bank and Trust Company

Williamsport, Pennsylvania

101,799 6 8

to merge w ith

First Citizens National Bank

Montgomery

8,178 2

Summary report by Attorney General, January 8, 1973

The head offices of Northern Central Bank and Trust Company and First 

Citizens National Bank are located about 10 miles apart. While there are offices 

of competing banks in the intervening towns of Muncy and South Williamsport, the relative size and broad service area of Northern Central Bank and 

Trust Company indicate that the proposed merger will eliminate some direct 

competition.

Northern Central Bank and Trust Company is the leading bank in Lycoming 

County (an area which may overstate the relevant banking market affected), 

holding about 26 per cent of total county deposits. First Citizens National 

Bank holds about 3 per cent of such deposits. The three leading banks in the 

county hold about 64 per cent of such deposits.

We conclude that the overall effect of the proposed merger on competition 

would be adverse.

Basis for Corporation approval, March 19, 1973

Northern Central Bank and Trust Company, Williamsport, Pennsylvania 

("Central"), a State nonmember insured bank with total resources of 

$101,799,000 and total IPC deposits of $84,088,000, has applied, pursuant to 

Section 18(c) and other provisions of the Federal Deposit Insurance Act, for 

the Corporation's prior consent to merge with First Citizens National Bank, 

M ontgom ery, Pennsylvania ("First Citizens"), with total resources of 

$8,178,000 and total IPC deposits of $6,970,000.* The banks would merge

^Figures as of June 30, 1972, but adjusted to reflect Central's acquisition in July 1972, of 

The Athens National Bank, Athens, Pennsylvania.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 69

under the charter and title of Central, and the two offices of First Citizens 

would become branches of the resulting bank, increasing the number of its 

offices to eight.

Competition. Central operates a total of six offices. The main office and 

two branches are located in Williamsport (population 37,918) in Lycoming 

County and two branches are located in or near Milton, about 25 miles southeast of Williamsport, in Northumberland County. Central's remaining office 

was acquired by merger in July 1972 and is located in Athens, Bradford 

County, about 80 miles northeast of the next nearest Central office. Williamsport is by far the largest population center for the immediately surrounding 

agricultural area. Central is the largest bank headquartered in, or operating in, 

Lycoming County, but three other commercial banks in Lycoming County also 

have total IPC deposits of more than $50 million.

First Citizens operates its main office and one branch in Montgomery, a 

small community of approximately 1,900 people, which is located about equidistant from Williamsport and Milton. The community is not served by a major 

highway, and its trade area is separated by mountainous terrain and the circuitous West Branch of the Susquehanna River from the rest of Lycoming County. Dairying and general farming are the principal occupational pursuits in and 

around Montgomery, although there is some industry, including a textile plant 

employing 1,200 and a leather goods firm. The population of Montgomery 

declined 11.5 percent during the decade ending in 1970, and this trend has 

continued since 1970, primarily because of the devastation caused by tropical 

storm Agnes in June 1972. Income levels in the area are about 10 percent below the statewide averages.

Central's major competitors in Williamsport include Fidelity National Bank 

of Pennsylvania and Williamsport National Bank, both headquartered in Williamsport, with total IPC deposits of $78 million* and $57 million, respectively, and Commonwealth Bank and Trust Company, Muncy, with total IPC 

deposits of $66 million. First Citizens is not a competitor in this local Williamsport banking market.

The competitive impact of this proposed merger would be most immediate 

and direct in an area around Montgomery bounded by Montoursville, Muncy, 

Turbotville, and Watsontown. Most residents of the area served by First Citizens would use these areas for shopping, rather than Williamsport or Milton, in 

view of the road system and terrain over which they travel. Within this area, 

seven commercial banks operate eight offices holding total IPC deposits of $76 

million. First Citizens is the sixth largest of the seven commercial banks in 

terms of area deposits, with 9.2 percent of the area's total commercial bank 

IPC deposits.

Although only 11 miles separate the nearest offices of the merging banks, 

Central's offices in both Williamsport and Milton may be said to be in separate 

banking markets from Montgomery insofar as customer convenience is concerned. Neither bank in fact appears to draw any significant business from

* Fidelity National Bank's deposits are adjusted to reflect its merger on January 8, 1973, 

with First National Bank of Lock Haven, Lock Haven, Pennsylvania, which had total 

IPC deposits of $24 million.

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70 FEDERAL DEPOSIT INSURANCE CORPORATION

areas served by the other, and what little business Central does derive from 

Montgomery and environs apparently stems from customers with larger or 

more sophisticated credit requirements than First Citizens or other small banks 

in the local banking market can handle.

Lycoming County is the headquarters county of both banks. Accordingly, 

under Pennsylvania law, both Central and First Citizens can legally branch de

novo within Lycoming and nine contiguous counties. The likelihood of this 

happening however, appears remote. First Citizens lacks the necessary capital 

and management depth to engage in further expansion by de novo branching. 

Central has the capacity and resources to open ade novo branch in Montgomery area, but the Montgomery area is not economically attractive for de novo

facilities. Population has been declining, income levels are below average, and 

the population for each commercial bank office is already low. The potential 

for increased competition between Central and First Citizens through de novo

branching thus appears remote.

Within the 10-county area where Central may legally branch de novo or by 

merger (its greatest potential market since Pennsylvania law presently does not 

permit the operation of multibank holding companies), there were as of June

30, 1972, 132 offices of 59 commercial banks with total IPC deposits of 

$1,048 million. Central held approximately 7.2 percent of such deposits and

4.5 percent of the total number of commercial bank offices.* Consummation 

of this proposed transaction would increase Central's share of total commercial 

bank IPC deposits in the 10-county area by 0.7 percent. In view of the relatively unconcentrated nature of this 10-county area and the presence in it of other 

competitors of significant size, it does not appear that the proposed merger 

would have any significant adverse effect on the concentration of banking 

resources or the commercial bank structure in this relevant area.

Under these circumstances, the Board of Directors is of the opinion that the 

proposed transaction would not, in any section of the country, substantially 

lessen competition, tend to create a monopoly, or in any manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. The resulting bank 

would have adequate financial and managerial resources. The future prospects 

for the resulting bank would be satisfactory.

Convenience and Needs o f the Community to be Served. The proposed 

transaction would have virtually no effect in trade areas presently served by 

Central. Customers of First Citizens, however, would benefit from the availability of FHA and VA mortgage services, more sophisticated business loan 

services, a substantially larger lending limit, a greater pool of lendable funds, 

credit card services, and trust services. To the extent any of these services are 

presently being offered by competing institutions in the local banking market 

around Montgomery, the public should benefit from increased competition and 

greater public choice.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

*Both figures have been adjusted to reflect Central's acquisition, in July 1972, of The 

Athens National Bank, Athens, Pennsylvania.

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Resources

(in

thousands

of dollars)

Banking Offices

In

operation

T o be

operated

Bank of Bethesda

Bethesda, Maryland

57,850 8 8

to merge with

Bethesda Trust Company

Bethesda

120 -

Summary report by Attorney General, December 26, 1972

The Bethesda Trust Company is a newly organized corporation, essentially 

wholly owned by the Bank of Bethesda. The apparent purpose of its organization and merger into Bank of Bethesda is the acquisition of trust powers by the 

latter. Acquisition of trust powers by the Bank of Bethesda in this manner 

would have no adverse competitive effects.

Basis for Corporation approval, April 13, 1973

Bank of Bethesda, Bethesda, Maryland ("Applicant"), an insured State nonmember bank with total deposits of $49.8 million, has applied, pursuant to 

Section 18(c) of the Federal Deposit Insurance Act, for prior written consent 

to merge with Bethesda Trust Company, Bethesda, Maryland ("Trust Company") a corporation newly organized under the banking laws of Maryland, with 

cash capital funds of $120,000. The institutions would merge under the charter 

and title of Applicant. Applicant has also applied for consent to exercise full 

trust powers.

Applicant's sole purpose in seeking the merger is to acquire trust powers. 

This purpose can be accomplished under Maryland banking laws and regulations only by merger with a trust company. The 15th largest commercial bank 

in the State, Applicant is one of only four among the 15 largest banks that do 

not have trust powers. In the service area of Applicant, fiduciary business is 

aggressively sought by a number of banks, and acquisition of trust powers by 

Applicant through the proposed merger should beneficially enhance competition for trust services within this market. Trust Company, recently formed 

solely as a vehicle by which Applicant may acquire trust powers, is not in 

operation and has no loans, deposits, or trust accounts. Accordingly, the Board 

of Directors is of the opinion that the proposed merger would not, in any 

section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade.

The factors of financial and managerial resources and future prospects are 

favorable for Applicant and for the resulting bank. Applicant's eight offices 

serve substantial sections of Montgomery County, and introduction by the 

proposal of an additional alternative source of trust services would enhance 

banking convenience in these areas.

On the basis of this and other information available to the Corporation, the 

Board of Directors has concluded that approval of the subject applications is 

warranted.

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

Resources

(in

thousands

o f dollars)

Banking Offices

In

operation

T o be

operated

Community State Bank and Trust Company

Linden, New Jersey

113,205 10 12

to merge with

The First National Bank

Piscataway

27,436 2

Summary report by Attorney General, March 8, 1973

The closest office of Community State to First National is approximately 

12 miles distant, with numerous banks in the intervening area. There is a 

limited overlap in the deposits and loans of Community State and First National originating from the other's service area. It would appear that the proposed 

merger would eliminate only limited existing competition.

Community State and First National are both located within the same banking district, and thus under New Jersey law each could establish branches in 

closer proximity to one another. Community State has the resources to expand; however, in view of First National's small size relative to other banking 

institutions in its market area and the existence of numerous other larger 

potential entrants, we conclude that the proposed merger would have no significant adverse competitive effects.

Basis for Corporation approval, April 13, 1973

Community State Bank and Trust Company, Linden, New Jersey ("Community"), a State nonmember insured bank with total resources of $113,205,000 

and total IPC deposits of $80,933,000, has applied, pursuant to Section 18(c) 

and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior written consent to merge with The First National Bank, Piscataway, 

Piscataway Township, New Jersey ("FNB Piscataway"), which has total resources of $27,436,000 and total IPC deposits of $10,706,000, under the 

charter and title of Community. Permission is also requested to establish the 

two offices of FNB Piscataway as branches of the resulting bank, increasing the 

number of its authorized offices to 14.

Competition. Neither Community nor FNB Piscataway is presently a ffiliated with a multibank holding company. Community operates a total of 10 

offices in New Jersey's Second Banking District and has the necessary approvals to establish two additional de novo branches. The main office and five 

branches are in Union County and the other four existing offices are in Monmouth County. One approved but unopened branch is to be located in Middlesex County and the other is to be located in Monmouth County.

Community is presently serving two separate and distinct trade areas. The 

main office and five branches within a 3-mile radius are in Union County, 

which together with Essex and Morris Counties compose the Newark SMSA. 

Between 1960 and 1970 the population of the Newark SMSA increased from 

1,689,420 to 1,856,556, or 9.9 percent. During this same period of time, the 

population of Union County increased 7.7 percent, from 504,255 to 543,116.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 73

The primary trade area of Community in Union County consists of the contiguous communities of Linden (1970 population 41,409, up 3.7 percent from 

1960), Rahway (1970 population 29,114, up 5.1 percent from 1960), and 

Roselle (1970 population 22,585, up 7.4 percent from 1960). The economic 

outlook for this portion of Union County is favorable.

One of the approved but unopened branches and the other operating offices 

of Community are located within a 5-mile radius of Middletown Township, 

Monmouth County, some 35 miles southeast of the main office. The population of Monmouth County increased 37.4 percent between 1960 and 1970 to 

459,379. Middletown Township, the primary trade area of Community in Monmouth County, grew at about the same rate between 1960 and 1970 and now 

stands at 54,623. While Monmouth County is experiencing some industrial and 

commercial expansion, it is primarily a residential area with people commuting 

as far as New York City and Philadelphia.

The two offices of FNB Piscataway are approximately 11/2 miles apart in 

Piscataway Township, Middlesex County. The primary service area of FNB 

Piscataway consists of Piscataway Township (1970 population 36,418, up 83.1 

percent over 1960) and the surrounding communities of Edison Township and 

the Boroughs of Metuchen, Middlesex, Dunellen, South Plainfield, and Highland Park. The population of this primary service area, which increased 41.7 

percent overall in the decade between 1960 and 1970, grew at a faster rate 

than Middlesex County as a whole. The economy of the county, as well as of 

FNB Piscataway's primary service area, includes both industrial and commercial expansion and various types of residential construction. As of June 30, 

1972, FNB Piscataway held 7.8 percent of total commercial bank IPC deposits 

in its primary service area and ranked seventh in this regard. Within a 10-12 

mile radius of Piscataway, there were 20 commercial bank competitors on the 

same date, but FNB Piscataway was the smallest of these and held less than 2.0 

percent of the total commercial bank deposits held at offices within that local 

banking market.

The two offices of FNB Piscataway are approximately 15 miles from the 

offices of Community in Union County and some 20 miles from the offices of 

Community in Monmouth County, with several offices of other commercial 

banks in the intervening areas. The two banks have no depositors or borrowers 

in common and derive little business from areas served by the other. The trade 

areas served by Community and FNB Piscataway are relatively separate and 

distinct, and there appears to be no significant amount of existing competition 

between them that would be eliminated by their proposed merger.

The approved but unopened branch of Community, which is to be located 

in Middlesex County, will be in Sayreville (1970 population 32,508, up 44.1 

percent over 1960), approximately 10 miles from FNB Piscataway's offices. 

Offices of other commercial banks would be located between their respective 

trade areas. Accordingly, there is little likelihood of substantial competition 

between Community and FNB Piscataway even after Community establishes its 

proposed branch in Sayreville.

In addition, no significant potential competition would be eliminated by the 

proposed merger. FNB Piscataway in the past has not attempted to expand 

outside its own community, and it does not have the financial and managerial

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74 FEDERAL DEPOSIT INSURANCE CORPORATION

resources to do so on a large scale. Community can legally branch de novo into 

FNB Piscataway's trade area, but it cannot branch de novo directly into Piscataway Township because of the home office protection provisions of New Jersey law. Larger communities in the trade area, such as Edison or New Brunswick, are barred to Community for the same reason. Since there are attractive 

locations open to de novo branching by Community and since others no doubt 

will arise as home office protection is removed in the future, it is possible that 

the two banks might find themselves in increasing competition in the future 

through de novo branching. However, numerous banks larger than the resulting bank would be operating throughout the district, while affiliates of 

multibank holding companies would constitute another source of future competition for independent banks in the district, like Community. Finally, the 

merger proposed would have little effect on the structure of commercial banking in the Second Banking District. As of June 30, 1972, with adjustments for 

subsequent mergers, there were 55 commercial banking organizations operating 

in the Second Banking District with total IPC deposits of $4.3 billion. Community had 1.9 percent of such commercial bank IPC deposits, while FNB 

Piscataway had only 0.3 percent.

For the reasons stated, the Board of Directors is of the opinion that the 

proposed transaction would not, in any section of the country, substantially 

lessen competition, tend to create a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. Each of these factors 

is favorable with respect to Community and is so projected for the resulting 

bank. FNB Piscataway has a number of operating problems that the proposed 

merger would correct.

Convenience and Needs o f the Community to be Served. The public in the 

Piscataway area should benefit from the availability of an additional convenient alternative for trust department services, larger size loans, expanded loan 

facilities, and other specialized services.

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

T o be

operated

Fidelity Mutuak Savings Bank

Spokane, Washington

331,886 14 15

to consolidate wi th

Pioneer Mutual Savings Bank

Seattle

10,926 1

Summary report by Attorney General, January 30, 1973

Though Fidelity Bank's home office is in Spokane, 300 miles from Seattle, 

Fidelity Bank operates six branch offices in King County where Pioneer Bank's

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 75

office is located. As a result, the merger will eliminate some existing competition between these two institutions. As of September 30, 1972, Fidelity Bank's 

six offices in King County held $69.1 million or approximately 3 per cent of 

the total deposits held by th rift institutions in King County. As of the same 

date, Pioneer Bank held $9.6 million or less than one-half of 1 per cent of this 

total. Twenty-five other th rift institutions operate in King County, the largest 

of which is the Washington Mutual Savings Bank which holds almost 40 per 

cent of the deposits held by th rift institutions in the county. In veiw of the 

small shares held by the merging institutions and the substantial number of 

competitors in the market, the proposed consolidation is not likely to have 

significant effects on existing competition.

Basis for Corporation approval, April 13, 1973

Fidelity Mutual Savings Bank, Spokane, Washington, ("F idelity"), an insured mutual savings bank with total resources of $331,886,000 and total 

deposits of $308,815,000, has applied, pursuant to Section 18(c) and other 

provisions of the Federal Deposit Insurance Act, for the Corporation's prior 

consent to consolidate with Pioneer Mutual Savings Bank, Seattle, Washington 

("Pioneer"), with total resources of $10,926,000 and total deposits of 

$9,748,000. The banks would consolidate under the charter and title of Fidelity and, as an incident to the consolidation, the sole office of Pioneer would 

become a branch of the resulting bank, increasing the number of its authorized 

offices to 16.

Competition. Fidelity operates 14 offices in various sections of Washington. 

Its main office and three branches are in Spokane County in eastern Washington, while six branches are in King County, and one branch is in Snohomish 

County, both counties being in the western part of the State and constituting 

the Seattle-Everett SMSA. Fidelity's three remaining branches are located in 

Grant, Franklin, and Benton Counties, all of which are located in the southcentral section of the State. Fidelity also has the necessary supervisory approvals for an additional branch in Bellevue, King County. Fidelity has the third 

largest share of th rift institution deposits in the State of Washington (that is,

6.5 percent of such deposits), but it is significantly smaller than Washington 

Mutual Savings Bank, the State's largest th rift institution, which holds 22.6 

percent of these deposits.

Pioneer operates its only office in the financial district of downtown Seattle 

and ranks 57th among the 63 th rift institutions in the State, with 0.2 percent 

of the deposits held by all of these institutions.*

While Fidelity has three, widely separated, trade areas in the State of Washington, the competitive impact of the proposed consolidation would be wholly 

confined to King County, where six of Fidelity's offices and Pioneer's only 

office are located. King County is Washington's most populous county, with 

33.9 percent of the State's population. Its 1970 population of 1,156,633 (up

23.7 percent since 1960) represents 81.3 percent of the total population of the 

Seattle-Everett SMSA. Income levels in Seattle proper approximate the statewide average but in other parts of King County are substantially above the

*Base figures for percentages are as of June 30, 1972, for mutual savings banks and August 

31, 1972, for savings and loan associations.

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76 FEDERAL DEPOSIT INSURANCE CORPORATION

statewide average. The local economy has long been dependent upon the 

Boeing Company and, beginning in 1970, suffered severely from heavy cutbacks in the production schedules of that company and in related aerospace 

industries. In the last year and a half, however, the employment situation 

appears to have stabilized and the current economic outlook is moderately 

favorable.

Pioneer's only office is about six city blocks distant from Fidelity's nearest 

office. This would indicate that there is some existing competition between the 

two institutions, although Fidelity's offices serve more residential areas than 

Pioneer. There are offices of other th rift institutions in the intervening area, 

however. Further, each bank holds a very small share of the local th rift institution market (Fidelity holding 3.2 percent of the county's total th rift institution deposits and Pioneer holding only 0.4 percent). In light of these facts, it 

appears that the proposed consolidation would not eliminate any significant 

existing competition.

The potential for increased competition between the two institutions in the 

future is limited. Pioneer is a small, conservatively operated mutual savings bank 

in the downtown financial district of Seattle, serving a limited clientele and 

lacking the resources and the experience to engage in de novo branching. While 

Fidelity clearly has the capacity and experience to branch de novo into downtown Seattle, it has little incentive to do so in view of the numerous existing 

offices of competitive th rift institutions in downtown Seattle and the availability of more attractive branch sites elsewhere.

In the local King County market, Washington Mutual Savings Bank controls

39.8 percent of all the deposits held at mutual savings bank and savings and 

loan association offices in the county. By contrast, Fidelity and Pioneer together hold only 3.6 percent of these deposits. Thus, in the King County market 

the proposed transaction would have no significant effect on the structure of 

th rift institution banking. Further, after the consolidation, there would still be 

27 th rift institutions operating 98 offices in King County, many of which 

would be in downtown Seattle.

Based on the foregoing, the Board of Directors has concluded that the 

proposed consolidation would not, in any section of the country, substantially 

lessen competition, tend to create a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. Fidelity and the resulting bank have satisfactory prospects for the future. Pioneer has satisfactory 

financial resources but an impending management succession problem. The 

proposed consolidation would resolve that problem.

Convenience and Needs o f the Community to be Served. The proposed 

consolidation would have no effect on the convenience and needs of any of the 

areas served by Fidelity outside King County. In King County, the effect on 

convenience and needs would be limited in view of the large number of th rift 

institutions presently available to the public. Pioneer's customers would benefit 

in time from more liberal policies with respect to consumer loans and mortgage 

loans (including FHA and VA loans) and from the availability of larger size 

loans, a wider range of deposit accounts, and a variety of automated services.

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 77

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

T o be

operated

Bank of Kewaskum

Kewaskum, Wisconsin

16,778 1 2

to consolidate with

Allenton State Bank

Allenton

3,197 1

Summary report by Attorney General, March 5, 1973

The closest offices of the parties are approximately 16 miles apart with 

several competitive alternatives in the intervening area. It appears that the 

proposed transaction would eliminate only a limited amount of existing competition.

Valley Bancorporation could legally establish de novo offices in the area 

served by Allenton State Bank. However, in view of the relatively modest 

market position of the bank to be acquired, its small absolute size, and the 

existence of a considerable number of other significant potential entrants, we 

conclude that the proposed transaction will not eliminate substantial potential 

competition.

Basis for Corporation approval, April 13, 1973

Bank of Kewaskum, Kewaskum, Wisconsin, an insured State nonmember 

bank with total resources of $16,778,000 and IPC deposits of $12,800,000, 

has applied, pursuant to Section 18(c) of the Federal Deposit Insurance Act, 

for the Corporation's prior consent to consolidate with Allenton State Bank, 

Allenton, Wisconsin, an insured State nonmember bank that has total resources 

of $3,197,000 and IPC deposits of $2,593,000. The banks would consolidate 

under the charter and title of Bank of Kewaskum and, subsequent to the 

consolidation, the resulting bank intends to apply for permission to establish a 

branch at the sole location of Allenton State Bank.

Competition. Bank of Kewaskum and Allenton State Bank are unit banks 

located in Washington County, which is part of the Milwaukee, Wisconsin, 

SMSA. The population of Washington County rose from 46,119, in 1960, to 

63,839, in 1970, an increase of 38.4 percent. Washington County is still primarily rural, but with the expansion of the Milwaukee metropolitan area it is 

becoming more residential, commercial, and industrial. By far the largest center 

of population in Washington County is the city of West Bend, whose population increased 66.1 percent between 1960 and 1970 to 16,555. In 1971 the 

household median income for Washington County was $9,711, as compared to 

$8,566 for the State of Wisconsin.

Since 1971 Bank of Kewaskum has been affiliated with Valley Bancorporation, Appleton, Wisconsin, a registered bank holding company. As of December

31, 1971, Valley Bancorporation controlled 11 banks with total deposits of 

$158 million. This amount represented 1.5 percent of all commercial bank 

deposits in the State of Wisconsin on that date, and Valley Bancorporation was 

the seventh largest banking organization in the State. Its closest affiliate, other 

than Bank of Kewaskum, is at Oshkosh, some 46 road miles northwest of

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78 FEDERAL DEPOSIT INSURANCE CORPORATION

Allenton and 5(5 road miles northwest of Kewaskum. The proposed acquisition 

of Allenton State Bank would obviously have no perceptible effect on the 

structure of banking in the State of Wisconsin.

The village of Kewaskum, which is located in the extreme northern part of 

Washington County near the Fond du lac County line, has a population of only 

1,926, but Bank of Kewaskum serves a somewhat larger area estimated to 

contain 6,500 persons. The area contains many dairy farms, but it is also 

experiencing a substantial amount of growth for residential purposes. Five 

industries located in Kewaskum provide employment for about 1,200 persons.

The unincorporated village of Allenton is located in the west-central portion 

of the county only a short distance from the Dodge County line. The village of 

Allenton has an estimated population of 500, but the population of the trade 

area served by Allenton State Bank is estimated at 3,000. This trade area is 

primarily agricultural.

Bank of Kewaskum and Allenton State Bank are 8 air miles apart with no 

commercial banking offices in the intervening area, but they are 16 road miles 

apart. The most direct route between Allenton and Kewaskum is through the 

city of West Bend, where the two largest commercial banks in the relevant local 

banking market are located. The commuting patterns are from Kewaskum and 

Allenton to West Bend or to the Milwaukee metropolitan area rather than 

between Allenton and Kewaskum.

The greatest impact of this proposed transaction would be felt in the area 

within a 15-mile radius of Allenton. Within this area, the 20 offices operated 

by 17 commercial banks held total deposits of $193,628,000 as of June 30, 

1972. Bank of Kewaskum had the fifth largest share of this market, with 7.2 

percent of commercial bank deposits, while Allenton State Bank, with 1.3 

percent, had the smallest share. The largest share, by far, was held by The First 

National Bank of West Bend, a $66 million deposit institution. The second 

largest share was held by West Bend Marine Bank, a $19 million deposit institution that is affiliated with Marine Corporation, a $700 million multibank holding company headquartered in Milwaukee. One of the banks in Hartford, about 

12 miles southwest of Allenton, and the bank in Mayville, some 15 miles 

northwest of Allenton, would be about the same size as the resulting bank.

The areas served by Bank of Kewaskum and Allenton State Bank overlap to 

some extent, and each bank derives some business from the trade area of the 

other, but the amount is not substantial. A 100 percent survey revealed that 

Bank of Kewaskum derived less than 1 percent of its deposits and 1.6 percent 

of its loans from the trade area served by Allenton State Bank, while only 2.3 

percent of the deposits and less than 1 percent of the loans held by Allenton 

State Bank were derived from the trade area served by Bank of Kewaskum. 

There was only one common customer. In view of these figures and the lack of 

significant commutation between Kewaskum and Allenton, it appears that no 

significant amount of existing competition would be eliminated by the proposed transaction.

There is, moreover, little likelihood of increased competition between Bank 

of Kewaskum and Allenton State Bank in the future as a result of de novo

branching since that activity is limited by State law to "bankless communities."

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

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 79

lessen competition, 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 banks are satisfactory, and the future prospects 

for the resulting bank are favorable.

Convenience and Needs o f the Community to be Served. In the primary 

trade area of Bank of Kewaskum, the only effect of the proposed transaction 

would be a somewhat higher lending limit. After the resulting bank establishes 

a branch in Allenton, that area should benefit from improved banking services. 

Allenton State Bank is presently paying only 1 percent interest on savings 

accounts, while the resulting bank would pay 41/2 percent compounded daily. 

The resulting bank would also pay higher rates on time deposits. In addition, 

the present lending lim it of Allenton State Bank ($30,000) would be replaced 

by one of $196,000. While it does not appear that the resulting bank would 

provide any services not presently available at the commercial banks in nearby 

West Bend, the proposed transaction would make the services more conveniently available in Allenton and provide another alternative for such services.

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

T o be

operated

Granite State Savings Bank 47,762 4 5

Somersworth, New Hampshire

to acquire the assets and assume the

liabilities of

Rochester Building and Loan Association 2,300 1

Rochester

Summary report by Attorney General, April 11, 1973

The closest offices of the parties to this transaction are about seven miles 

apart. According to the application, Granite State draws about $2.2 million in 

deposits and about $1.7 million in loans from the area served by Rochester 

Building and Loan, an amount equal to the total business done by the latter in 

its own service area. The proposed transaction will eliminate this existing competition.

Granite State is one of the largest savings institutions in Strafford County, 

holding about 20 per cent of the county's time and savings deposits. Rochester 

Building and Loan is among the smaller institutions, holding about 1 per cent 

of such deposits. The four largest competitors in the county hold about 78 per 

cent of such deposits; concentration would be increased if the proposed transaction is consummated.

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80 FEDERAL DEPOSIT INSURANCE CORPORATION

The adverse effect on competition which would attend the instant transaction may be in part ameliorated by the small size and modest competitive 

capabilities of Rochester Building and Loan.

Basis for Corporation approval, April 30, 1973

Granite State Savings Bank, Somersworth, New Hampshire ("Granite 

Bank") (total resources $47,762,000; total deposits $42,880,000), an insured 

mutual savings bank, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent 

to purchase the assets of, and assume liability to pay deposits made in, Rochester Building arid Loan Association, Rochester, New Hampshire ("B & L") (total 

resources $2,300,000; total deposits $2,056,000). The sole office of B&L 

would be operated as a branch of Granite Bank, increasing the number of its 

offices to five.

Competition. Granite Bank is headquartered in Strafford County (1970 

population 70,431, up 17.8 percent since 1960) in southeastern New Hampshire adjacent to the Maine border and immediately to the north of the city of 

Portsmouth. Granite Bank's main office is in Somersworth (population 9,026) 

and it has three branches: one in Somersworth, one in Dover (population 

20,850), and one in Rollinsford (population 2,273). Strafford County is dependent upon manufacturing, principally the production of rubber, plastics, and 

leather products. Its income levels are slightly above the State averages.

B&L has its sole office in Rochester (1970 population 17,938, up 12.6 

percent since 1960), which is also in Strafford County. Rochester is 7.5 miles 

northwest of Granite Bank's main, and closest, office.

The competitive impact of the proposed transaction would be most immediate and direct within a distance of 10 to 12 miles of the city of Rochester, an 

area covering most of Strafford County. Seven th rift institutions, of which 

Granite Bank is the third largest and B&L is the smallest, compete in that area. 

Granite Bank holds about 22 percent of the total deposits of these seven 

institutions, while B&L holds about 1 percent of such deposits. Granite Bank 

has no office in Rochester, but it holds an estimated $2.2 million in deposits 

and $1.7 million in loans originating from Rochester and its immediate environs. While this would indicate some existing competition between B&L and 

Granite Bank that would be eliminated by the proposed transaction, the 

amount thereof appears to be very limited in comparison to the $63.6 million 

total of such deposits held in all th rift institution offices in Rochester. Moreover, the purchase and assumption proposed should serve to strengthen competition in both Rochester and Dover where B&L and Granite Bank, respectively, hold a very limited percentage of local deposits compared to other th rift 

institutions in each community. The Corporation concludes, in view of the 

small size of B&L, that no substantial lessening of existing competition would 

occur within the relevant local bank market.

There appears to be no potential for increased competition between the two 

institutions through de novo branching in the future. State law prevents Granite Bank from entering Rochester de novo and makes no provision tor de novo

branching by B&L, a State-chartered building and loan association.

Neither institution holds a significant portion of the total th rift institution 

deposits in New Hampshire as a whole.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 81

For the reasons stated, the Board of Directors is of the opinion that the 

proposed purchase and assumption transaction would not, in any section of the 

country, substantially lessen competition, tend to create a monopoly, or in any 

other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Financial resources 

of both institutions are adequate, as would be those of the resulting bank. 

Granite Bank, the continuing bank, has fully adequate managerial resources. 

Future prospects of the bank after consummation of the transaction would be 

favorable.

Convenience and Needs o f the Community to be Served. The proposed 

transaction would have little effect on the public generally in the relevant local 

market, since Granite Bank presently has four offices at different locations 

within that market. Customers of B&L, however, would benefit from greatly 

increased lending resources, a higher interest (dividend) return on serial shares 

(5 percent per annum rather than the present 4-1/2 percent), mortgage loans 

insured or guaranteed by VA or FHA, and the convenient availability of personal loans and installment loans at the B&L location.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands

o f dollars)

Banking O ffices

In

operation

T o be

operated

Frankenmuth State Bank

Frankenmuth, Michigan 

(change title to Frankenmuth 

Bank and Trust)

83,734 10 11

to consolidate with

Chesaning State Bank

Chesaning

17,314 1

Summary report by Attorney General, April 6, 1973

Frankenmuth Bank and Chesaning Bank are headquartered about 25 miles 

apart, and the nearest offices of the two banks are about 18 miles apart, with 

no banking offices intervening. It appears that the proposed acquisition would 

eliminate only a limited amount of existing competition. Moreover, in view of 

the modest size of the parties and the existence of several significant potential 

entrants into their markets, we conclude that the proposed transaction will not 

eliminate substantial potential competition.

Therefore, we conclude that the proposed transaction would not have a 

substantial competitive impact.

Basis for Corporation approval, May 21, 1973

Frankenmuth State Bank, Frankenmuth, Michigan ("Frankenmuth Bank"), 

an insured State nonmember bank with total resources of $83,734,000 and

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82 FEDERAL DEPOSIT INSURANCE CORPORATION

total IPC deposits of $65,666,000, has applied, pursuant to Section 18(c) and 

other provisions of the Federal Deposit Insurance Act, for the Corporation's 

prior consent to consolidate with Chesaning State Bank, Chesaning, Michigan 

("Chesaning Bank"), with total resources of $17,314,000 and total IPC deposits of $13,622,000. The banks would consolidate under the charter of Frankenmuth Bank with the title of "Frankenmuth Bank and Trust" and, as an incident to the consolidation, the sole office of Chesaning Bank would become a 

branch of the resulting bank, increasing the number of its authorized offices to 

12.

Competition. Frankenmuth Bank operates six offices in eastern Saginaw 

County and four offices in the adjacent counties of Tuscola and Bay. It also 

has approval for an additional branch in Frankenmuth. Saginaw County is in 

east-central Michigan, to the northwest of the city of Flint and had a 1970 

population of 219,743, up 15.2 percent during the 1960s. About 92,000 of the 

county's residents live in the city of Saginaw. The county is heavily industrialized but still has some agricultural activity. Median household income in Saginaw coincides with the State average. Frankenmuth Bank is not affiliated with 

any multibank holding company and is the sixth largest commercial bank in its 

branching and merging area, with approximately 3.6 percent of the total deposits held by all commercial bank offices in the same area.

Chesaning Bank operates its only office in the village of Chesaning (1970 

population 2,876) in south-central Saginaw County and has no holding company affiliation. Chesaning is primarily dependent upon agriculture, but many 

area residents commute to Saginaw, Owosso, or Flint for employment.

The most immediate and direct effect of the proposed consolidation would 

be confined to a radius of approximately 15 miles of Chesaning. In this local 

market, there are seven commercial banks operating 12 offices, of which 

Chesaning Bank is the third largest, with 11.2 percent of their total deposits. 

The market is dominated by The Owosso Savings Bank, an $81 million-deposit 

institution, with 54.0 percent of the total deposits of these seven banks. 

Frankenmuth Bank does not operate in this market, and its closest office is 

some 20 miles northeast of Chesaning. In addition, the volume of business 

generated by each bank from areas served by the other is negligible. Thus, there 

is no significant existing competition that would be eliminated by the proposed 

consolidation.

The possibility of increased competition in the future between Frankenmuth Bank and Chesaning Bank through de novo branching appears remote. 

Michigan law allows countywide branching but prohibits de novo entry into a 

city or village, like Chesaning or Frankenmuth, in which another bank office is 

located. Unbonked communities in Saginaw County, where both banks could 

branch de novo, have very limited population or deposit potential.

The resulting bank's maximum branching and merging area consists of all of 

Saginaw County and that area within 25 miles of Frankenmuth. In this broader 

area, 21 banks operate 121 offices with aggregate deposits in excess of $1.8 

billion. Competitors include significantly larger banks in Saginaw and Flint, as 

well as The Owosso Savings Bank. Frankenmuth Bank is the sixth largest of 

these commercial banks, with 3.6 percent of their total deposits, but its five 

larger local competitors have significantly larger shares of this potential market, 

ranging from approximately 8.4 percent to approximately 27.1 percent. The 

resulting bank would have 4.4 percent of the total commercial bank deposits

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 83

and would continue to rank a distant sixth. The structure of commercial banking in this area, therefore, would not be significantly affected by the proposed 

consolidation.

Based on the foregoing, the Board of Directors has concluded that the 

proposed consolidation would not, in any section of the country, substantially 

lessen competition, tend to create a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. Each of these factors 

is favorable with respect to the consolidating banks and is so projected for the 

resulting bank.

Convenience and Needs o f the Community to be Served. Although Frankenmuth Bank's customers should benefit from the resulting bank's somewhat 

higher lending limit, the greatest effect would be in the service area of Chesaning Bank. A limited service bank would be replaced by a branch of a larger, 

more aggressive bank offering the full range of commercial banking services, 

including significantly larger lending limits, computerized account records, and 

trust services. The number of commercial banking alternatives in the local 

Chesaning area would not, of course, be affected.

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

T o be

operated

Fishkill Savings Bank

Fishkill, New York 

(change title to Mid-Hudson 

Savings Bank)

33,000 3 4

to merge with

Wappinger Savings Bank

Wappingers Falls

23,573 1

Summary report by Attorney General, January 9, 1973

Wappingers Falls and Fishkill are located about five miles apart with no 

banks in intervening communities. It appears that the proposed merger will 

eliminate substantial direct competition between Fishkill Savings Bank and 

Wappinger Savings Bank for savings deposits and mortgage loans in Dutchess 

County.

Savings deposits in Dutchess County's eight th rift institutions are concentrated, primarily due to the fact that the Poughkeepsie Savings Bank (deposits 

$250 million) alone holds about 56 per cent of such deposits. The next largest 

th rift institution holds about 10 per cent of such deposits; the shares of the 

remaining six institutions range from 6.7 per cent to about 4 per cent. Fishkill 

Savings Bank and Wappinger Savings Bank hold about 6.4 per cent and 4.6 per 

cent of such deposits respectively. The addition of the time and savings deposits in commercial banking offices in the county does not markedly change

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84 FEDERAL DEPOSIT INSURANCE CORPORATION

these percentages; in this broader market, Fishkill Savings Bank and Wappinger 

Savings Bank hold shares of 4.8 per cent and 3.4 per cent.

Because of the elimination of direct competition and increase in concentration, we conclude that the proposed merger would have an adverse effect on 

competition.

Basis for Corporation approval, May 25, 1973

Fishkill Savings Bank, Fishkill, New York, an insured mutual savings bank 

with total resources of $33,000,000 and total deposits of $30,987,000, has 

applied, pursuant to Section 18(c) and other provisions of the Federal Deposit 

Insurance Act, for the Corporation's prior written consent to merge with 

Wappinger Savings Bank, Wappingers Falls, New York, with total resources of 

$23,573,000 ard total deposits of $21,629,000, under the charter of Fishkill 

Savings Bank arid with the title "Mid-Hudson Savings Bank." The one office of 

Wappinger Savings Bank would become a branch of the resulting bank increasing the number of its offices to four.

Competition. The main office of Fishkill Savings Bank and its branch in 

Hopewell Junction are both in the southern part of Dutchess County, New 

York, while its branch in Cold Spring (opened in August of 1972) is in Putnam 

County, New York. Fishkill is about 5 miles northeast of Beacon and 14 miles 

southeast of Poughkeepsie— the two principal population centers in Dutchess 

County, both of which are on the east bank of the Hudson River. Hopewell 

Junction is 4 miles northeast of Fishkill, while Cold Spring is a small community on the Hudson River about 6 miles south of Beacon. Wappingers Falls 

lies midway between Poughkeepsie and Beacon and is 6 miles northwest of 

Fishkill. The trade areas of the two banks overlap, but residents of the areas 

would also find th rift institution offices in Beacon and Poughkeepsie convenient alternatives. They also have numerous bank-by-mail options among 

th rift institutions located outside Dutchess and Putnam Counties.

The proposed merger would have its most direct and immediate impact in 

the southwestern portion of Dutchess County consisting of the cities of Poughkeepsie (population 32,029) and Beacon (population 13,255) and certain adjacent and contiguous townships in the central and western parts of the county. The economy of this area is dominated by a large IBM complex located 5 

miles north of Wappingers Falls. IBM is the largest area employer, with approximately 16,000 employees consisting of management, professional, technical, 

and highly skilled workers whose average income is much higher than most 

types of industries. Texaco also has a local facility with 1,000 employees and 

the remainder of the working population is employed in service-related businesses, light industry, and farming. The 1971 household median income for 

Dutchess County was $9,980 while that for the entire State was $9,684. In 

view of its proximity to the expanding Metropolitan New York City area, 

favorable future prospects for the area seem assured.

As of June 30, 1972, there were eight offices of four mutual savings banks 

and three offices of two savings and loan associations in this local banking 

market. Based on deposit data as of June 30, 1972, for the mutual savings 

banks and data as of August 31, 1972, for the savings and loan associations, the 

largest share by far of their combined deposits (64.9 percent) was held by The 

Poughkeepsie Savings Bank, a $279 million institution. The second largest

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 85

share of their combined deposits (11.7 percent) was held by the Beacon Savings Bank, a $50 million institution. Fishkill Savings Bank had 7.4 percent and 

Wappinger Savings Bank had 5.3 percent of such deposits. Combined, the two 

applicants would hold the second largest share (12.7 percent) of the total 

savings bank and savings and loan deposits in the market. The two savings and 

loan associations that share the balance of such deposits are, respectively, First 

Savings and Loan Association of Poughkeepsie, a $35 million institution, and 

Hudson Valley Federal Savings and Loan Association, a $62 million institution. 

The market shares recited would, of course, be lower if the withdrawable 

balances of local credit unions, including the $40 million IBM credit union, 

were included.

Because of the proximity of their offices and their location in the same local 

market, Fishkill Savings Bank and Wappinger Savings Bank must be considered 

actual competitors at the present time. There are 253 common depositors, and 

each draws modest deposit business and about 40 percent of its total mortgage 

business from areas served primarily by the other. The variance between the 

volume of deposits as compared to the volume of loans each draws from areas 

primarily served by the other can be partially explained by the presence of 

local credit unions, particularly IBM's. This credit union pays a more attractive 

dividend rate on its withdrawable balances than local savings banks or savings 

and loan associations and offers the convenience of having funds automatically 

credited from the IBM payroll to an employee's account. On the other hand, 

the restrictions placed on credit unions in their mortgage lending activities have 

limited their effectiveness in this field.

While the proposed merger would eliminate the competition for deposits 

and mortgages that presently exists between Fishkill Savings Bank and 

Wappinger Savings Bank, the dollar amounts involved, as well as the market 

shares involved, are relatively small compared to the total th rift deposit and 

mortgage lending business that originates in this part of Dutchess County. The 

combined bank, for example, would have only one-eighth of the market's total 

th rift institution deposits, only one-fifth of the deposits held by the Poughkeepsie Savings Bank, and only slightly more in deposits than Beacon Savings 

Bank. In competing for local mortgages, moreover, the mortgage lending activities of local commercial banks and out-of-area institutions would also reduce 

the significance of eliminating the competition that presently exists in this 

connection between Fishkill Savings Bank and Wappinger Savings Bank.

A look to the future is also relevant in determining whether or not the 

effect of the proposed merger may be to lessen competition "substantially." 

Under New York law, savings banks and savings and loan associations (with 

some variations not relevant here) may branch de novo anywhere within the 

banking district in which they are headquartered, subject to home office protection restrictions. On and after January 1, 1976, New York law provides that 

they may branch de novo anywhere within the State, subject to similar restrictions. In New York's Third Banking District, where both Fishkill Savings Bank 

and Wappinger Savings Bank are headquartered, there are today some 57 mutual savings institutions eligible to branch de novo under these provisions; and 

23 of them are larger in aggregate size than the resulting bank would be if this 

proposed merger were approved. The resulting bank in fact would hold only

1.3 percent of the deposits of all mutual savings banks and savings and loan 

associations in the district. Statewide, more than 150 of these institutions

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86 FEDERAL DEPOSIT INSURANCE CORPORATION

would be larger than the resulting bank. Given the income levels and growth 

anticipated for Dutchess County, a significant number of these larger banks are 

likely to be attracted to the local banking market where Fishkill Savings Bank 

and Wappinger Savings Bank operate today.* Under these circumstances, any 

increase in the concentration of banking resources within the local banking 

market and any reduction in the number of competing th rift institutions is 

likely to be extremely temporary, with the long-term prospects excellent for 

deconcentratiori and greater public choice as to th rift institution facilities.

Under the circumstances recited above, the Board of Directors has concluded that the proposed merger would not, in any section of the country, 

substantially lessen competition, tend to create a monopoly, or in any other 

manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Both banks have 

satisfactory financial and managerial resources for the business they do as 

independent institutions, and both have favorable prospects for the future.

Convenience and Needs o f the Community to be Served. Consummation of 

the proposed transaction should benefit the customers of both banks through 

the additional services that are likely to be offered by the resulting bank. These 

include the financing of commercial mortgages, larger size loans, and savings 

bank life insurance customers of Wappinger Savings Bank would benefit further from the convenient availability of 1-year savings certificates and property 

improvement loans now offered by Fishkill Savings Bank but not by Wappinger 

Savings 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

T o be

operated

Chittenden Trust Company

Burlington, Vermont

207,320 17 19

to merge with

The County National Bank of Bennington

Bennington

21,175 2

Summary report by Attorney General, May 9, 1973

Since Chittenden and County National are separated by a distance of more 

than 90 miles, the proposed merger will not foreclose substantial existing competition between the two banks.

The proposed merger will, however, eliminate significant potential competition. Vermont banking structure is dominated by a very small number of large 

banks, of which Chittenden is the largest, with total deposits of about $185

*Two of the larger banks, headquartered in Kingston, on the western side of the Hudson 

River, now have applications pending before the supervisory authorities for de novo

branches near Fishkill.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 87

million. Only two other banks in the state have deposits exceeding $100 

million, and there are only two banks with deposits of between $50 and $100 

million. Of these five banks with deposits exceeding $50 million, two (First 

Vermont Bank and Trust and Vermont National Bank) already have offices in 

Bennington County. Thus, there are only three banks in Vermont that could be 

considered significant potential entrants into Bennington County, and Chittenden is the largest of these three. Since Vermont law permits statewide branching, these three banks could establish de novo offices in Bennington County.

Bennington County is presently served by five commercial banks operating 

10 banking offices. It is highly concentrated, with the three largest banks in the 

county holding more than 71 percent of total county deposits. County National ranks third among the five banks serving the county, with almost 20 percent 

of county deposits. Indeed, since County National operates only in the central 

and southern portions of the county, that area (south-central Bennington 

County) might be a more proper relevant market* in which to analyze the 

effects of this merger. In that area, four banks operate seven offices, with 

County National ranking second with 26 percent of total area deposits. The 

three largest banks in south-central Bennington County hold over 91 percent of 

total area deposits.

This merger would eliminate the largest of only two significant potential 

entrants into Bennington County and, more precisely, south-central Bennington County. * In addition, the acquisition of County National by the state's 

largest bank would add to the bank's leading position in the state. In states like 

Vermont, where the banking deposits of the state are concentrated in a small 

number of large organizations, it is important to carefully consider additional 

acquisitions which would add to that concentration. In such states, mergers of 

local leaders with the state's largest banks can have the effect of foreclosing 

the opportunity for the development of new organizations of sufficient size to 

compete effectively with the few statewide leaders.

On the other hand, the south-central portion of Bennington County is a 

relatively small area currently served by four banking organizations, including 

two of the four largest in the state. Entry by Chittenden into this market may 

increase competition in it, especially if entry is made de novo. Since the 

Bennington area is one of a very limited number of attractive Southern Vermont areas, however, it seems likely that Chittenden would seek to enter de

novo if prevented from entry by this merger. On balance, therefore, we conclude that the proposed transaction would have an adverse competitive effect, 

is not in the public interest, and should be denied.

Basis for Corporation approval, May 25, 1973

Chittenden Trust Company, Burlington, Vermont ("Chittenden Trust"), a 

State nonmember insured bank with total resources of $207,320,000 and total 

IPC deposits of $143,852,000, has applied, pursuant to Section 18(c) and

*This area was stipulated to be the relevant market, and found to be a section of the 

country, in a previous antitrust case challenging the merger of County National and 

another Bennington County Bank, Catamount National Bank, U.S. v County National

Bank of Bennington, 339 F. Supp. 85 (D. Vt., 1972).

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88 FEDERAL DEPOSIT INSURANCE CORPORATION

other provisions of the Federal Deposit Insurance Act, for the Corporation's 

prior consent to merge with The County National Bank of Bennington, Bennington, Vermont, ("County"), with total resources of $21,175,000 and total 

IPC deposits of $17,953,000. The banks would merge under the charter and 

title of Chittenden Trust and, as an incident to the merger, the two offices of 

County would become branches of the resulting bank, increasing the number 

of its authorized offices to 21.

Competition. Chittenden Trust operates 17 offices in northern Vermont, 

nine of which are in Chittenden County, its headquarters county. Two branches each are located in Addison, Washington, and Orleans Counties, one branch 

is located in Grand Isle County, and one branch is located in Franklin County. 

In addition, the necessary supervisory approvals have been obtained for additional branches in Waitsfield and Berlin, both in Washington County. The bank 

operates no offices in Bennington County (the location of County's two offices) or in any county contiguous thereto. Chittenden Trust is the largest 

commercial bank in Vermont, with deposits equal to 16.4 percent of the total 

for all commercial banks in the State.

County operates two offices in Bennington County (population 29,282, up

16.7 percent since 1960): its main office in Bennington and a branch office in 

Arlington. Bennington County has 10 offices of five commercial banks, including offices of First Vermont Bank and Trust Company, Brattleboro, and 

Vermont National Bank, also headquartered in Brattleboro, the State's third 

and fourth largest commercial banks, respectively. Among the five banks in 

Bennington County, County holds the third largest share (19.5 percent) of 

Bennington County commercial bank IPC deposits. County is the 14th largest 

commercial bank in Vermont, with 1.6 percent of the State's total commercial 

bank deposits.

The closest offices of the two banks are 90 miles apart and their main 

offices are 125 miles apart. Furthermore, these offices are separated by mountainous terrain and there are numerous offices of other commercial banks 

intervening. Less than 1 percent of each bank's deposits originate from areas 

primarily served by the other, and neither has any significant loan volume from 

such areas. It is apparent that the proposed merger would eliminate no significant existing competition between Chittenden Trust and County.

Vermont law allows statewide de novo branching. While Chittenden Trust, 

the State's largest bank has the capabilities for successful de novo expansion, 

the Corporation has concluded that no significant potential exists for increased 

competition between the two banks through de novo branching. The population per banking office in Bennington County is already a low 2,928, while the 

county's population increased by only 4,194 people between 1960 and 1970. 

Income levels for the county are unexceptional— being approximately the same 

as the State average, which is nearly 10 percent below the national average. 

Still largely rural, Bennington County shows little prospect for dramatic future 

growth that might constitute economic justification for a significant number of 

additional commercial bank facilities. For these reasons, de novo entry by 

Chittenden Trust into Bennington County is likely to remain economically 

unattractive for the forseeable future. County, for its part, because of limited 

resources and minimal de novo branch experience, is not thought likely to 

expand 90 miles or more to the north, by de novo branching into areas presently served by Chittenden Trust. The proposed merger thus appears unlikely to

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 89

result in any significant loss of potential competition between Chittenden 

Trust and County as a result of de novo branching.

In the local Bennington County market, where the competitive effects of 

the proposed merger would be most direct and immediate, competition should 

be stimulated, particularly with regard to First Vermont Bank and Trust Company, a $104 million deposit institution that today has the largest share (approximately 32 percent) of all Bennington County commercial bank IPC deposits.

On a statewide basis, the proposed merger has both procompetitive and 

anticompetitive aspects. Vermont, the third smallest State in the nation in 

terms of population, had 444,330 people at the time of the 1970 Census. Its 

total commercial bank deposits, as of December 31, 1972, aggregated only 

$1.1 billion and were held by 40 banks. Three of its five largest banks, including Chittenden Trust, have traditionally confined their banking operations to 

the northern part of the State, while the two remaining large banks, First 

Vermont Bank and Trust Company and Vermont National Bank, have traditionally confined their operations to the four southernmost counties in the 

State, of which Bennington County is one. Recently, there has been some 

movement by both groups toward the central portion of the State. The acquisition here proposed, representing the first move by a major northern Vermont 

bank into southern Vermont, would constitute an important step in the evolution toward a more competitive statewide structure in which all five banks, and 

possibly others not now in the ranks of the State's largest, would be competing 

in all the significant local banking markets throughout Vermont. The adverse 

effect of the proposed acquisition is that it adds to the strength of the State's 

largest bank by merger and further concentrates the banking resources of the 

State. As a result of this proposed acquisition, Chittenden Trust's share of the 

State's total commercial bank deposits would rise from 16.4 percent to 18.0 

percent. While the merger of any bank of relatively significant size with a bank 

already holding 16.4 percent of the State's total commercial bank deposits 

would normally be a matter of serious supervisory concern, there are mitigating 

factors when the State concerned has as limited a statewide population and as 

limited an aggregate deposit potential as Vermont. Only a small number of 

large banks, with a full range of wholesale banking services, can be created in 

such a State. This consideration prompts the Corporation to weigh the procompetitive effects of the proposed merger (in encouraging a greater number of 

statewide competitors) more heavily than the increase in statewide concentration ratios that would undoubtedly result.

Since (i) no significant existing competition between the two banks would 

be eliminated, (ii) no significant potential for increased competition between 

them through de novo branching would be eliminated, (iii) Chittenden Trust is 

presently unrepresented in southern Vermont where County's two offices are 

located, and (iv) the procompetitive effects of the proposed merger on statewide commercial bank structure appear to outweigh the anticompetitive effects 

of an increase in statewide concentration ratios, the Board of Directors has 

concluded that the proposed transaction would not, in any section of the 

country, substantially lessen competition, tend to create a monopoly, or in any 

other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Both Chittenden

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90 FEDERAL DEPOSIT INSURANCE CORPORATION

Trust and County have adequate financial and managerial resources and satisfactory prospects for the future, as would the resulting bank.

Convenience and Needs o f the Community to be Served. The proposed 

merger would not significantly affect commercial banking services offered in 

the areas where Chittenden Trust presently operates. Customers in the 

Bennington area, however, would receive the benefits of another large bank 

alternative for services not now available at County, such as specialized lending 

services, municipal financing expertise, a lending lim it in excess of $2 million 

for a single customer, full trust services, a credit card program, and computer 

services.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands

o f dollars)

Banking Offices

In

operation

T o be

operated

Bank of A. Levy 99,080 15 16

Oxnard, California

to acquire a portion of the assets and

assume a portion of the liabilities of

Union Bank 12,11 A* 1*

Los Angeles

Summary report by Attorney General, April 17, 1973

A distance of about 13 miles separates the West Van Nuys Branch from the 

nearest Bank of A. Levy office, with several competitive alternatives in the 

intervening area. It appears that the proposed transaction would not eliminate 

any substantial existing competition.

Bank of A. Levy could legally establish de novo offices in the area served by 

West Van Nuys Branch. However, in view of the size of the acquiring bank, the 

presence of branches of several of the state's largest banks in West Van Nuys 

Branch's service area, and the existence of a number of other significant potential entrants, we conclude that the proposed transaction will not eliminate 

substantial potential competition.

The proposed transaction would have no adverse competitive effects.

Basis for Corporation approval, June 11, 1973

Bank of A. Levy, Oxnard, California ("Levy"), an insured State nonmember 

bank with total resources of $99,080,000 and total deposits of $89,488,000, 

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

*Resources and branch office to be acquired by Bank of A. Levy.

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of, and assume liability to pay .deposits made in, one office of Union Bank, Los 

Angeles, California ("the Union Office"), located in the community of West 

Van Nuys, Los Angeles, California (total deposits of $11,990,000 as of June 

30, 1972). As an incident to the transaction, the Union Office would continue 

as an office of Levy, thereby increasing the total number of its authorized 

offices to 18.

Competition: Levy presently operates 15 offices and has supervisory approval for two additional offices, not yet opened. These 17 offices are all 

located in Ventura County (population 376,430), immediately to the northwest of Los Angeles. Eleven other commercial banks operate within Ventura 

County. Levy holds 15.3 percent of all the commercial bank deposits held at 

their local Ventura County offices, ranking third in this respect. Bank of 

America National Trust and Savings Association and Security Pacific National 

Bank hold 35.3 percent and 28.0 percent, respectively, of the Ventura County 

commercial bank deposits. Levy operates no offices in Los Angeles County. It 

is the 34th largest commercial bank in California, with 0.1 percent of the 

State's total commercial bank deposits.

Union Bank, headquartered in Los Angeles, is the sixth largest commercial 

bank in California and operates 26 offices throughout the State. Union Bank is 

oriented toward wholesale bank business, operating primarily in commercial 

and industrial centers, and through this application is attempting to divest itself 

of one retail/consumer office located in a residential community.

Competition within the Union Office service area, consisting of that portion 

of West Van Nuys within 2 miles or so of its site, includes six offices of four 

other commercial banks. In terms of total deposits held by these six offices, 

the Union Office ranks third, with 18.9 percent, while the State's largest and 

second largest commercial banks hold 36.2 and 22.2 percent, respectively. The 

closest office of Levy to the Union Office is approximately 13 miles away, and 

no significant competition exists between them.

The net effect of the proposed transaction would be to transfer the West 

Van Nuys market share of the sixth largest bank in the State to a much smaller 

bank entering Los Angeles County for the first time. Union Bank would continue also to serve any business/wholesale customers in the Van Nuys area from 

two regional centers nearby.

Under these circumstances, the Board of Directors is of the opinion that the 

proposed transaction would not, in any section of the country, substantially 

lessen competition, tend to create a monopoly, or in any manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Each of these factors 

is resolved favorably for the participating banks involved in this proposal, and 

they are so projected for the resulting bank.

Convenience and Needs o f the Community to be Served. The principal area 

to be affected by the proposed acquisition would be the West Van Nuys 

section of Los Angeles. The transaction would simply replace one bank with 

another, both offering similar services; however, the policies of the acquiring 

bank would be more favorable to the retail banking needs of this type of 

community, while Union Bank's wholesale services would remain conveniently 

available at two nearby locations.

On the basis of 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

I n

operation

T o be

operated

State Savings Bank

Goodell, Iowa

(change title to North Iowa State Bank)

2,292 1 3

to merge with

The First National Bank of Klemme

Klemme

5,333 1

Summary report by Attorney General, March 7, 1973

This proposed merger involves two very small banks in a rural area. In view 

of their proximity, some existing competition is likely to be eliminated by the 

proposed merger. Within 20 miles of the two banks (an area which probably 

overstates an appropriate market), eight banks, including the merging institutions, operate 10 banking offices. First Bank and State Bank rank seventh and 

eighth among these banks, with 6.5 per cent and 2.9 per cent, respectively, of 

total deposits, and the merged institution would be the sixth largest.

Basis for Corporation approval, June 18, 1973

State Savings Bank, Goodell, Iowa ("Savings Bank"), an insured State nonmember bank with total deposits of $1,970,000, has applied, pursuant to 

Section 18(c) and other provisions of the Federal Deposit Insurance Act, for 

the Corporation's prior written consent to merge with The First National Bank 

of Klemme, Klemme, Iowa ("First Bank"), with total deposits of $4,810,000, 

under the charter of Savings Bank and with the title "North Iowa State Bank." 

In connection with this proposed transaction, a new main office would be 

established in Belmond, Iowa, and the existing offices in Goodell and Klemme 

would be operated as additional offices.

Competition. Both Savings Bank and First Bank are located in Hancock 

County in the north-central portion of Iowa. Hancock County is a rural county 

that reflects the national trend to fewer but larger and more mechanized farming units. The population of Hancock County declined 9.4 percent between 

1960 and 1970, from 14,604 to 13,227. The town of Goodell (population 

218) is located in the extreme southern part of the county near the Wright 

County border, while the town of Klemme (population 533) is located 5 miles 

north of Goodell and 1 mile east of U.S. Route 69. Household median income 

for Hancock County was $6,862 in 1971, compared to the statewide average of 

$8,407.

President R. H. Isensee of United Home Bank & Trust Company, Mason 

City, Iowa, and his associates control 10 commercial banks in the State of 

Iowa, including Savings Bank and First Bank, the latter having been acquired in 

1972. Another of these "Isensee Group" banks, the $5 million Farmers State 

Bank, Kanawha, Iowa, is located 10 miles west of Goodell and 16 road miles 

from Belmond.

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If the proposed merger is approved, the main office of the resulting bank 

would be located in Belmond, Wright County, 5 miles south of Goodell. This 

county is also a rural county of declining population (1970 population 17,294, 

down 11.1 percent from 1960). Belmond itself had 2,358 people in 1970 and 

contains a few farm-related businesses and one established bank with approximately $11 million in deposits. Household median income for Wright County 

in 1971 was $8,235.

The competitive impact of the proposed merger would be most immediate 

and direct within a 15-mile radius of Goodell, the location of the smaller bank 

in this proposed merger. That area, which would be of very limited population, 

contains 12 offices of 10 commercial banks, holding total deposits of $73 

million. First Bank held 5.6 percent and Savings Bank 2.5 percent of these 

deposits, while the Farmers State Bank, Kanawha, Iowa (another Isensee 

Group bank) held 6.4 percent of these deposits. Independent banks in Garner 

and Belmond, each of approximately $11-12 million in deposit size, would be 

larger than the resulting bank. Moreover, First Bank and Savings Bank each 

serve their own small community and only a limited portion of the local 

market. While some competition between the two banks might be eliminated 

because of their proximity, the amount of business involved does not appear to 

be of significant proportions. The proposed merger should in fact stimulate 

competition with the $12 million deposit Hancock County National Bank 

located in Garner, about 12 miles north of Goodell and 6 miles north of 

Klemme. Once the new main office is completed and trust services are offered, 

the merger should also have procompetitive effects in Belmond and its surrounding area, where the resulting bank would offer an alternative to the $11 

million First State Bank of Belmond for commercial banking services.

Under Iowa law, the resulting bank could legally establish de novo offices in 

nine counties except for home office communities. The latter provision bars 

either bank from opening a de novo office in the other's present home office 

community, but the extremely limited and declining populations of both 

Goodell and Klemme would make this branching unattractive in any event. 

Furthermore, the limited resources of Savings Bank and its lack of branching 

experience make de novo expansion anywhere in the nine counties a very 

unlikely prospect. Thus, no significant potential for increased competition between the two banks in the future through de novo branching is likely to be 

eliminated by their proposed merger.

As of June 30, 1972, there were 100 offices of 69 commercial banks in the 

nine-county legal branching area of the resulting bank and they held total 

deposits of $620 million. The "Isensee Group" controlled nine of these banks 

with aggregate deposits of $85 million representing 13.7 percent of the total 

deposits held at all such offices, but there is a proposal pending whereby a large 

registered bank holding company based in Des Moines, Iowa, would acquire the 

three largest of the "Isensee Group" banks with deposits of $63 million. The 

proposed merger would not materially affect the concentration of banking 

resources in this widest geographic area of potential competition; indeed, if the 

sale of the three "Isensee Group" banks is consummated, the holdings of that 

group in this same area would be substantially reduced.

For the reasons stated, the Board of Directors is of the opinion that the 

proposed transaction would not, in any economically significant section of the

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94 FEDERAL DEPOSIT INSURANCE CORPORATION

country, substantially lessen competition, tend to create a monopoly, or in any 

other manner be in restraint of trade.*

Financial and Managerial Resources; Future Prospects. Both Savings Bank 

and First Bank have adequate financial resources and satisfactory managerial 

resources, as would the resulting bank. Due to local economic conditions, the 

future prospects for the resulting bank are more favorable than for Savings 

Bank and First Bank operating as independent units.

Convenience and Needs o f the Community to be Served. Consummation of 

this proposed transaction would not provide the residents of Goodell and 

Klemme with any services not presently available, other than a larger lending 

lim it to service the demand for larger agricultural credits (the basic lending 

limit of Savings Bank being $25,000, First Bank's being approximately 

$33,000, and the resulting bank's being approximately $81,000). The proposed 

merger should, however, stimulate competition with the bank in Garner and, 

once the new main office is completed, with the existing bank in Belmond. The 

resulting bank intends to offer trust services as well, once its new main office is 

completed.

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

T o be

operated

Bank of Mississippi

Tupelo, Mississippi

114,660 20 21

to merge with

The Bank of West Point

West Point

11,413 1

Summary report by Attorney General, April 17, 1973

Applicant and Bank are headquartered approximately 46 miles apart, and 

the nearest offices of the two banks are about 29 miles apart. There are three 

alternative banking offices in the intervening area. It appears that the proposed 

merger would eliminate no substantial existing competition.

Under Mississippi law, banks may legally establish branches within 100 miles 

of their home offices. Thus, Applicant could establish de novo offices in the 

area served by Bank. However, both West Point and Clay County have experienced a decline in population over the past decade, and the market does not

*For purposes of this analysis, the Corporation has ignored the fact that the two participating banks were recently brought under common control through stock purchase by 

the "Isensee Group" of a controlling interest in First Bank, apparently motivated by a 

desire to effectuate the proposed merger. Absent unusual circumstances, such a stock 

purchase lends no persuasive weight to an approval of the proposed transaction since the 

contrary conclusion could well defeat the purpose of supervisory review under the Bank 

Merger Act, as amended.

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appear particularly attractive for de novo entry. In view of the nature of the 

community served by Bank, its modest size and the existence of other significant potential entrants, we conclude that the proposed merger will not eliminate substantial potential competition.

Therefore, we conclude that the proposed transaction would not have a 

substantial competitive impact.

Basis for Corporation approval, June 25, 1973

Bank of Mississippi, Tupelo, Mississippi, an insured State nonmember bank 

with total resources of $114,660,000 and IPC deposits of $90,614,000, 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 Bank of West Point, West Point, Mississippi ("West Point 

Bank"), having total resources of $11,413,000 and IPC deposits of $8,554,000. 

As an incident to the merger, Bank of Mississippi would operate the sole office 

of West Point Bank as a branch, thereby increasing to 21 the number of its 

offices.

Competition. Bank of Mississippi currently has offices in seven northeastern 

counties of the State of Mississippi. These, together with Union County, from 

which a substantial amount of business is derived, comprise its primary trade 

area. The economy of this region is basically agricultural, although during the 

past decade light industry has become increasingly significant in the area. The 

population of these eight counties increased 4.8 percent during this period, to 

185,058, as compared with the statewide increase of 1.8 percent. Bank of 

Mississippi has no office in Clay County at the present time.

West Point Bank has its sole office in eastern Clay County (1970 population 

18,840— a 0.5 percent decrease since 1960). Clay County is situated immediately south of the counties of Chickasaw and Monroe, within which Bank of 

Mississippi is presently represented. The economy of Clay County closely resembles that of the present trade area of Bank of Mississippi. West Point Bank 

holds approximately 42.5 percent of county IPC deposits, while The First 

National Bank of West Point holds approximately 54.2 percent of these deposits and the recently established Clay County Bank and Trust Company 

holds the balance. West Point Bank draws the bulk of its business from the city 

of West Point (population 8,714) and environs, although its banking market is 

county wide.

The nearest office of Bank of Mississippi is located in Houston, Chickasaw 

County, some 35 road miles northwest of West Point. Several competing banks 

service the intervening area, and the two banks report no common depositors 

or borrowers. They operate in separate, although adjacent, service areas, and it 

appears that no significant existing competition between them would be eliminated by the proposed merger.

Increased competition in the future between Bank of Mississippi and West 

Point Bank through de novo branching is unlikely. Clay County is not adjacent 

to Lee County, the site of Bank of Mississippi's main office, and under Mississippi law, the number of branches it may establish de novo in the nonadjacent 

counties within 100 miles of Tupelo is limited. West Point is the only city in 

Clay County and accounts for more than 46 percent of the county's population. Three commercial banks are presently headquartered in this city, and 

there are already four commercial bank offices to serve Clay County's 18,840

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96 FEDERAL DEPOSIT INSURANCE CORPORATION

people. Bank of Mississippi would find other nonadjacent counties, having 

more favorable growth rates and larger disposable income, more attractive than 

Clay County for such expansion, especially when State law provisions protecting home office and branch office communities are taken into account. For its 

part, West Point Bank, with limited resources and a lack of branching experience, would be unlikely to branch de novo in the foreseeable future into areas 

presently served by Bank of Mississippi.

In its largest potential market, which under State law is the area within a 

100-mile radius of Tupelo, Bank of Mississippi controls 8.7 percent of the total 

IPC deposits held at June 30, 1972, by all offices of the 78 commercial banks 

therein represented. The proposed merger would increase its share of this market to 9.7 percent. In the State as a whole, Bank of Mississippi holds only 2.6 

percent of all commercial bank IPC deposits. The proposed merger, accordingly, appears unlikely to eliminate any significant potential competition between the two banks in the future or to affect adversely the commercial bank 

structure of the northeast section of Mississippi.

Under the circumstances presented, the Board of Directors is of the opinion 

that the proposed merger would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner 

be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Both of the participating banks have adequate financial and managerial resources, as would the 

resulting bank. Future prospects for the resulting bank would be favorable.

Convenience and Needs o f the Community to be Served. The merger would 

provide West Point and Clay County with a commercial bank facility whose 

aggressive management would operate with a lending lim it exceeding $1 million. The importance of this credit capability will increase as the area's trend 

toward industrialization accelerates. In the meantime, data processing facilities, 

broadened trust services, expanded mortgage lending services and, in general, 

the specialized services of a large bank would become available to Clay County 

residents and businessmen.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands

o f dollars)

Banking Offices

In

operation

T o be

operated

Wilmington Savings Fund Society

Wilmington, Delaware

454,501 13 13

to acquire the assets and assume

the deposit liabilities of

Endowment Building and Loan Association

Wilmington

899 1

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Summary report by Attorney General, April 23, 1973

Wilmington Savings holds the dominant share of savings and time deposits in 

New Castle County. In mid-1972, it held 66.6 percent of savings and time 

deposits in county th rift institutions (savings banks and savings and loan associations), and 36.7 percent of such deposits in county offices of th rift institutions and commercial banks. Endowment held about 0.2 percent of savings and 

time deposits in county offices of th rift institutions, and 0.1 percent of such 

deposits in county offices of th rift institutions and commercial banks.

Endowment's sole office is only four blocks from Wilmington Savings' main 

office. Endowment's office will be closed after acquisition. Wilmington Savings 

also operates three branch offices in Wilmington. The proposed acquisition 

would thus eliminate direct competition between the two institutions. However, in view of Endowment's small size ($769,000 in deposits; 300 savings 

accounts) and modest competitive capabilities, the proposed acquisition would 

not have a substantially adverse effect on competition.

Basis for Corporation approval, June 29, 1973

Wilmington Savings Fund Society, Wilmington, Delaware ("Society") (total 

resources $454,501,000; total deposits $419,737,000), an insured mutual savings bank, has applied, pursuant to Section 18(c) and other provisions of the 

Federal Deposit Insurance Act, for the Corporation's prior consent to purchase 

the assets of, and assume liability to pay deposits made in, Endowment Building and Loan Association, Wilmington, Delaware ("B & L") (total resources 

$899,000; total deposits $769,000), an uninsured association. The existing 

office of B&L would be closed if the transaction is consummated.

Competition. Society is headquartered in Wilmington, Delaware, a part of 

the densely populated, highly developed New York-Washington corridor, Extensive manufacturing is carried on in the Wilmington area, which serves also as 

the commercial and service center for Delaware and portions of adjacent Maryland, Pennsylvania, and New Jersey. Society operates 13 offices at the present 

time, of which 10, including its main office, are located in New Castle County, 

the northernmost of Delaware's three counties. Three additional offices have 

been approved, but are not yet in operation. Society is the largest of 25 th rift 

institutions in the State of Delaware, with approximately 65 percent of their 

aggregate deposits.

B&L is the smallest th rift institution in New Castle County, with total 

deposits of only $324,000 after deducting hypothecated deposits representing 

loan payments. These deposits are held in approximately 300 accounts. B&L's 

deposits originate almost exclusively in the city of Wilmington, where it has its 

only office. Almost all of the mortgage loans on B&L's books (numbering 96 as 

of February 28, 1973) are secured by real property situated in depressed areas 

of Wilmington with an average appraised value of only $8,900. B&L's earnings 

approximated $3,000 for the 12 months ended February 28, 1972, and its 

deposit and loan totals have been declining in recent years. Finally, B&L's only 

active officer and director wishes to retire. It is obvious that B&L is an ineffectual competitor among th rift institutions in Wilmington and that is limited 

resources would constitute only a de minimis addition to the assets and deposits of even the largest th rift institution in the State. Moreover, efforts to

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98 FEDERAL DEPOSIT INSURANCE CORPORATION

interest several th rift institutions other than Society in a similar assumption 

transaction proved unsuccessful. Should this transaction be consummated, 12 

offices of seven competing th rift institutions would remain available to residents of Wilmington even though B&L's only office is closed.

Under the circumstances presented, the Board of Directors is of the opinion 

that the proposed purchase and assumption transaction would not, in any 

section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Society, the continuing bank, has adequate financial and managerial resources. Its future prospects, 

following consummation of the proposed transaction, would continue to be 

favorable.

Convenience and Needs o f the Community to be Served. Customers of B&L 

would have three offices of Society within a convenient distance of the present 

B&L office and a total of six within the city of Wilmington at which to 

transact business. The lending expertise of the State's largest th rift institution 

would be available to B&L's borrowers and the broad range of Society's services would be available to all B&L customers. Its depositors would also gain 

the protection and security of Federal deposit insurance.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands

o f dollars)

Banking Offices

I n

operation

T o be

operated

Monroe Security Bank and Trust Company

Stroudsburg, Pennsylvania 

(change title to Security Bank and 

Trust Company)

55,948 7 9

to merge with

The Bank of Matamoras

Matamoras

15,577 2

Summary report by Attorney General, March 6, 1973

The closest branch of Monroe Security to Bank of Matamoras is the Marshalls Creek branch, which is approximately 36 miles from the Bank of Matamoras and approximately 28 miles from Bank of Matamoras' newly approved 

Milford branch. Neither bank derives any significant banking business from the 

service area of the other. Accordingly, it does not appear that the proposed 

merger will have a significantly adverse effect on existing competition.

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Pennsylvania law permits de novo branching into counties contiguous to the 

county in which the branching bank's head office is located. Pike County is 

contiguous only to the Pennsylvania counties of Wayne and Monroe. Monroe 

Security (total deposits of $45 million) is the only bank with its main office in 

Monroe County and is the only Monroe County bank that could be permitted 

to branch de novo into Pike County. Of the eight banks with main offices in 

Wayne County, the three largest have total deposits of $18 million, $19 million, and $20 million, respectively. None of the other five Wayne County banks 

have more than $10 million in total deposits. The proposed merger would 

eliminate Monroe Security as a potential entrant into Pike County.

However, because Pike County may not be particularly attractive for de novo

branching, the overall effect of the merger on potential competition would not 

appear to be significantly adverse.

Basis for Corporation approval, June 29, 1973

Monroe Security Bank and Trust Company, Stroudsburg, Pennsylvania 

("Security"), a State nonmember insured bank with total resources of 

$55,948,000 and total IPC deposits of $45,107,000, has applied, pursuant to 

Section 18(c) and other provisions of the Federal Deposit Insurance Act, for 

the Corporation's prior written consent to merge with The Bank of Matamoras, 

Matamoras, Pennsylvania, a State nonmember insured bank with total resources of $15,577,000, and total IPC deposits of $12,335,000. The banks 

would merge under Security's charter but with the title "Security Bank and 

Trust Company." Permission is also requested to establish the two offices of 

The Bank of Matamoras as branches of the resulting bank, thereby increasing 

the number of its offices to nine.

Competition. All seven offices of Security are located in Monroe County, 

Pennsylvania, which borders the State of New Jersey in the central portion of 

eastern Pennsylvania. The two offices of The Bank of Matamoras are located in 

the northeastern portion of Pike County that lies north of Monroe County. 

Matamoras is only 2 miles from Port Jervis, New York, and the northwestern 

corner of New Jersey.

Monroe and Pike Counties are best known for the Pocono Mountains, which 

have been a major resort area for many years. There is only a limited amount 

of industry or agriculture in either county, and no substantial economic growth 

is foreseen. The population of Monroe County increased 14.8 percent between 

1960 and 1970, from 39,567 to 45,422. During this same period of time, the 

population of Pike County increased 29.0 percent, to 11,818. In 1971 the 

median household income was $7,399 for Pike County and $7,868 for Monroe 

County, compared to $8,613 for the State.

The proposed merger would have its most direct and immediate competitive 

impact in Matamoras and within a 15-mile radius of that community— an area 

that includes parts of New York and New Jersey. Within that area The Bank of 

Matamoras, as of June 30, 1972, ranked fifth of 10 commercial banks in terms 

of local IPC deposits, with 14.6 percent of the total. Three banks with larger 

shares of this local market had total deposits of $941 million, $477 million and 

$401 million, respectively.

Stroudsburg and Matamoras are 39 miles apart, and the shortest distance

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100 FEDERAL DEPOSIT INSURANCE CORPORATION

between offices of the participating banks is the 29 miles between the Marshalls Creek Branch of Security and the branch of The Bank of Matamoras at 

Milford. While these two branches are located on the same highway, the area 

between them is sparsely populated with no industry. There are no common 

shareholders or loan customers and only one common depositor. The Milford 

Branch of The Bank of Matamoras is in direct competition with the main office 

of The First National Bank of Pike County, a $17 million deposit institution. 

Security and The Bank of Matamoras operate in separate and distinct trade 

areas, and there is no significant amount of existing competition between them 

that would be eliminated by their merger.

Under Pennsylvania law, Security could legally branch de novo into Pike 

County and The Bank of Matamoras could legally branch de novo into Monroe 

County. This however, does not seem likely. The population per commercial 

banking office in Monroe County is 2,672 and only 1,970 in Pike County, 

income levels are below the State average in both counties and locations for 

new offices in populated communities within both counties are scarce. Taking 

into account the nature of the local economies, the proposed merger is unlikely 

to eliminate any significant potential for increased competition in the future 

between Secur ty and The Bank of Matamoras as a result of de novo branching.

The widest geographic area within which Security can branch under existing 

law contains the seven counties of Monroe, Northampton, Carbon, Luzerne, 

Lackawanna, Wayne, and Pike. The 208 offices operated by 71 banks in this 

area had total IPC deposits of $2.6 billion as of June 30, 1972. Security ranked 

14th of these 71 banks, with 1.6 percent of their total IPC deposits. The 

resulting bank would rank 12th, with 2.0 percent of these deposits. Several of 

the banks operating in this area are much larger than the resulting bank would 

be, and the proposed transaction should have no perceptible impact on the 

structure of commercial banking in this broadest possible area of future competition.

For the reasons stated, the Board of Directors is of the opinion that the 

proposed transaction would not, in any section of the country, substantially 

lessen competition, 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 banks are satisfactory, and the future prospects 

for the resulting bank are favorable.

Convenience and Needs o f the Community to be Served. Matamoras and 

Pike County would be the primary beneficiaries of this proposed transaction. 

Currently there are only six commercial banking offices operated by three 

banks in Pike County and only one commercial banking office in Matamoras. 

People living in this area now find it necessary to patronize New York or New 

Jersey banking offices or travel long distances in Pennsylvania to obtain the 

specialized banking services not available in Pike County. Some of the services 

to be offered by the resulting bank, which are presently not provided by The 

Bank of Matamoras, are a greater variety of certificates of deposit, higher rates 

of interest on certain types of certificates of deposit, larger-sized loans, trust 

services, and computer facilities.

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

T o be

operated

Franklin State Bank

Franklin Township, New Jersey

226,025 15 22

to merge with

First New Jersey Bank

Union

80,740 7

Summary report by Attorney General, May 22, 1973

According to the application, the service areas of the merging banks are 

largely separate, with the exception of that surrounding one office of each in 

Clark, where direct competition would be eliminated by the merger. However, 

Franklin's Hillside branch is sufficiently proximate to First's Union service area 

to indicate that some existing competition will also be eliminated by the merger in that area. Similarly, it would appear that some competition would be 

eliminated in the Bound Brook-Middlesex area, where each bank operates a 

branch.

Selection of an appropriate geographic market in which to evaluate the 

effect of the proposed merger on concentration in commercial banking is extremely difficult because of the dispersion of the merging banks' offices and 

the contiguity of developed communities in this part of New Jersey. However, 

the resulting bank would operate offices over much of Union County. Neither 

the application nor other data presently available to the Department contains 

information sufficient to calculate precisely the increase in concentration in 

the county that would attend the proposed merger; however, based on data for 

prio r years, and the existence of a num ber of large banks operating in the 

county, it does not appear that banking concentration in the county would be 

substantially increased.

Basis for Corporation approval, July 13, 1973

Franklin State Bank, Franklin Township (P. 0. Somerset), New Jersey 

("Franklin"), a State nonmember bank with total resources of $226,025,000 

and total IPC deposits of $167,097,000, 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 First New Jersey 

Bank, Union, New Jersey ("First New Jersey"), with total resources of 

$80,740,000 and total IPC deposits of $66,146,000, and for consent to establish branches at the seven locations where First New Jersey is presently operating.

Competition. Franklin operates five offices in Somerset County, five offices 

in Monmouth County, four offices in Union County, and one office in Middlesex County— all located in New Jersey's Second Banking District. Two additional offices have been approved, one to be located in Monmouth County, the 

other in Mercer County. First New Jersey maintains seven offices— six in Union 

County and one in Middlesex County. Most of the areas served by the two 

banks are densely populated, rapidly growing residential suburbs of New York

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102 FEDERAL DEPOSIT INSURANCE CORPORATION

City, with light industry expanding in several places. Neither bank is presently 

affiliated with a multibank holding company.

While each bank serves other parts of the Second Banking District, the 

proposed merger would have its most direct and immediate competitve impact 

in Union County, where Franklin has four offices and First New Jersey has six 

offices. Their closest offices, with aggregate deposits of $7.7 million, are only a 

block apart in Clark Township, but under the State of New Jersey's order 

approving the proposed merger, First New Jersey's office in this community 

must be either closed or relocated. Another pair of offices are only 1.7 miles 

apart. While some deposit and loan competition between the two banks would 

obviously be eliminated by their merger, it is estimated that in all of Union 

County, Franklin holds only about 3.4 percent of the total commercial bank 

deposits held at offices in the county, while First New Jersey holds approximately 5.2 percent. Twelve other commercial banks have a total of 85 offices 

in the county, and four of them would have a larger share of the county's total 

commercial bank deposits than Franklin and First New Jersey combined. 

Under the circumstances, the proposed merger is unlikely to result in any 

significant loss of existing competition between the two banks.

While both banks can branch de novo throughout the Second Banking District, subject to home office and branch office protection in communities 

below 7,500 in population, no such activity on First New Jersey's part is likely 

in the foreseeable future because of its weakened financial condition and lim ited managerial resources. Franklin has the resources, experience and desire to 

expand further in the district, but numerous larger banks and bank holding 

company systems are likely to seek similar expansion in attractive growth 

areas. The loss of any potential for increased competition between the two 

banks through de novo branching thus appears to be an insignificant factor 

insofar as it might adversely affect vigorous commercial bank competition in 

the district in the future.

Within the Second Banking District as a whole, Franklin held 3.4 percent of 

the IPC deposits held on June 30, 1972, by all commercial banks in the 

district, while First New Jersey held 1.4 percent of such deposits. The resulting 

bank, with 4.8 percent of these IPC deposits, would be the sixth largest commercial bank headquartered in the district— an area in which an increasing 

number of smaller banks are being acquired by much larger multibank holding 

companies headquartered in other districts.

In the State as a whole, the two banks combined would hold only 1.6 

percent of total commercial bank deposits.

In view of the foregoing, the Board of Directors is of the opinion that the 

proposed merger would not, in any section of the country, substantially lessen 

competition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Financial and managerial resources of Franklin are satisfactory; those of First New Jersey are 

inadequate. The resulting bank, because of Franklin's strength and a planned 

infusion of $5 million in capital, would have satisfactory financial and managerial resources, and its future prospects would be favorable.

Convenience and Needs o f the Community to be Served. The proposed 

merger would provide customers of First New Jersey with a more aggressive, 

capable, and competitive management, the convenience of expanded banking

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hours, trust and computer services, and a significantly higher lending limit.

On the basis of the foregoing, the Board of Directors has concluded that 

approval of the application is warranted.

Resources

(in

thousands

o f dollars)

Banking Offices

In

operation

T o be

operated

Tracy-Collins Bank and Trust Company

Salt Lake City, Utah

104,966 9 10

to acquire the assets and assume the

liabilities of

Farmers State Bank

West Bountiful

21,080 1

Summary report by Attorney General, February 26, 1973

Tracy-Collins Bank and Trust Company operates no offices in Davis County. 

The closest office of Tracy-Collins Bank and Trust Company is located about 

nine miles south of West Bountiful. The application indicates that despite the 

proximity of these offices, there is no significant overlap between the eight 

branches of Tracy-Collins Bank and Trust Company and Farmers State Bank. 

Accordingly, only a very limited degree of existing competition would be 

eliminated by the proposed merger.

Farmers State Bank is the largest bank headquartered in Davis County. As 

of June 30, 1972, it held total deposits of $17.9 million, accounting for 17 per 

cent of total Davis County deposits, the largest share held by any bank.

State law prohibits Tracy-Collins Bank and Trust Company from establishing a de novo branch in West Bountiful. Tracy-Collin's bank holding company 

parent could establish a bank in Davis County as a subsidiary; thus, the proposed acquisition by Tracy-Collins Bank and Trust Company may eliminate 

some potential competition. However, because of the existence of a number of 

other significant potential entrants into that area, the proposed acquisition 

would not appear to have a significantly adverse competitive effect.

Basis for Corporation approval, July 13, 1973

Tracy-Collins Bank and Trust Company, Salt Lake City, Utah ("TracyC o llin s "), a State nonmember insured bank with total resources of 

$104,966,000 and total IPC deposits of $72,041,000, has applied, pursuant to 

Section 18(c) and other provisions of the Federal Deposit Insurance Act, for 

the Corporation's prior written consent to purchase the assets of, and assume 

liability to pay deposits made in, Farmer's State Bank, West Bountiful, Utah 

("Farmers"), which has total resources of $21,080,000 and total IPC deposits 

of $16,916,000. The one office of Farmers would be operated as a branch of 

Tracy-Collins, increasing the number of its offices to 10.

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104 FEDERAL DEPOSIT INSURANCE CORPORATION

Competition. All offices of Tracy-Collins are in Salt Lake County, and the 

one office of Farmers is located in the South Davis Division of Davis County, 

which is adjacen*: to the northern border of Salt Lake County.

The population of the Salt Lake City SMSA, consisting of Davis and Salt 

Lake Counties, increased from 447,795, in 1960, to 557,635, in 1970, an 

increase of 24.5 percent, while the population of Salt Lake City itself declined 

7.2 percent, from 189,454 to 175,885. The Salt Lake City SMSA is bordered 

on the north by the Ogden, Utah, SMSA and on the south by the Provo-Orem, 

Utah, SMSA. The Salt Lake City metropolitan area is the financial, commercial, industrial, and distribution center for a wide area that includes, in 

addition to Utah, southern Idaho, western Wyoming, and eastern Nevada.

The population of South Davis County, including the cities of Bountiful, 

West Bountiful, Centerville, Farmington, Woods Cross, and North Salt Lake, 

increased 53.7 percent, from 30,924 to 47,539, between 1960 and 1970. 

South Davis County is a choice residential area within convenient distance of 

Salt Lake City to which many of its local residents commute for employment, 

entertainment, and shopping.

The shortest distance between offices of the participating banks is the 10 

miles separating the main offices of the two banks. Several offices of other 

commercial banks are located in the intervening area, but the Salt Lake City 

offices of Tracy-Collins may be considered reasonably convenient options for 

the residents o1 South Davis County who commute regularly to Salt Lake City.

The relevant local area within which the proposed transaction would have 

its most immediate and direct effects competitively is probably Salt Lake City 

and South Davis County combined. It appears, however, that no significant 

existing competition between Tracy-Collins and Farmers would be eliminated 

within this relevant market. The two banks together would control only 7.4 

percent of total commercial bank deposits and only six offices of a total of 53. 

Farmers alone accounts for only 1.7 percent of these deposits and one office. 

Four commercial banks would be larger than the resulting bank and hold in the 

aggregate 79.6 percent of the deposits and about 48 percent of all commercial 

bank offices. Moreover, residents of South Davis County who commute to Salt 

Lake City would have 10 separate institutional alternatives conveniently available to them for commercial bank services.

With respect to the possibility of increased competition between the two 

banks in the future through de novo branching, Farmers could legally branch 

de novo into Salt Lake City and Salt Lake County, but this does not seem likely 

in view of its lack of branching experience, its limited managerial resources, 

and the number of commercial banking offices already established in Salt Lake 

County. Tracy-Collins can branch de novo anywhere in Salt Lake County, but 

only into incorporated communities outside Salt Lake County and then subject 

to home office protection. It thus cannot branch de novo into the city of West 

Bountiful, since West Bountiful is an incorporated city and the main office of 

Farmers is located there. Of the six incorporated cities in the South Davis 

Division of Davis County, three are closed to de novo branching due to main 

office protection, while Centerville City (population 3,268) has two branches 

of other banks and North Salt Lake (an even smaller community) already has a 

branch of the State's second largest commercial bank. The three incorporated 

cities in South Davis County closed to de novo branching by Tracy-Collins

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 105

contain 67 percent of the population in the South Davis Division of the county, and the five commercial banking offices located in these three cities hold 91 

percent of the division's total commercial bank deposits. While income levels in 

Davis County are relatively high and the population for each existing commercial bank office in Davis County is also relatively high (at 5,942 persons), 

the number of locations available to Tracy-Collins for de novo branching under 

Utah law is obviously limited. Three other banks, larger than Tracy-Collins, 

moreover, are also potential entrants by de novo branching if additional commercial bank locations can be found. Legally, the parent holding company of 

Tracy-Collins could also establish a de novo bank in one of the closed communities, but this means of entry into a market with only $64 million in total 

commercial bank deposits does not seem likely, especially since the three largest banking organizations in the State are already present in the market and 

there are other, larger banks that are also potential entrants. Accordingly, it 

appears that there is no significant potential for increased competition, between Tracy-Collins and Farmers as a result of de novo branching or the 

establishment of a de novo bank, which would be eliminated by the proposed 

transaction.

Commercial banking in the State of Utah is concentrated in its three largest 

banking organizations, which as of December 31, 1972, held 60.2 percent of 

the total deposits held by all commercial banks in the State. The largest share is 

held by First Security Corporation, Salt Lake City, Utah, with 29.4 percent, 

the next two largest banking organizations are also headquartered in Salt Lake 

City and they have 16.6 percent and 14.2 percent, respectively. Tracy-Collins is 

the seventh largest of 46 commercial banking organizations in the State, with

3.7 percent of the State's total commercial bank deposits, while Farmers holds 

only 0.8 percent of the deposits. The resulting bank would rank as the sixth 

largest organization in the State, with 4.5 percent of total deposits, and would 

still be much smaller than the three largest. First Security Corporation also 

controls one commercial bank in Idaho and one in Wyoming and combined has 

total deposits in excess of $1 billion. Consummation of this proposed transaction would accordingly have no significant effect on the structure of commercial banking statewide in Utah.

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 competition, tend to create a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. Tracy-Collins has 

satisfactory financial and managerial resources, as would the resulting bank. 

Future prospects for the resulting bank are favorable.

Convenience and Needs o f the Community to be Served. Except for a 

modest increase in the legal lending limit, this proposed transaction would 

provide no major benefits to present customers of Tracy-Collins. More significant benefits would accrue to customers of Farmers. Thus, the present lending 

lim it of Farmers is $130,000, while the resulting bank would have a lim it of 

$1,020,000. In addition, the resulting bank would offer golden passbook accounts, lower interest rates on some types of loans, and trust services that are 

presently not available at Farmers.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

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106 FEDERAL DEPOSIT INSURANCE CORPORATION

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

T o be

operated

Southern Bank and Trust Company

Mount Olive, North Carolina

33,948 14 15

to merge with

Merchants & Farmers Bank

Macclesfield

3,594 1

Summary report by Attorney General, November 10, 1972

The home offices of the two banks are approximately 55 miles apart, and 

the nearest branch of Southern is about 25 miles east in adjacent Martin 

County. A large number of alternative banking offices of many of the state's 

largest banks operate in the surrounding and intervening areas. This proposed 

merger would not appear to eliminate any significant actual competition presently existing between the two banks.

Since North Carolina banking laws permit statewide branching, Southern 

could enter Macclesfield de novo. However, considering the small size of Macclesfield, and its rather static economic situation, the area would not appear to 

be attractive for such expansion by Southern at the present time. Moreover, 

there are other banks much larger than Southern operating in the area, which 

could enter Macclesfield or surrounding areas of Edgecombe County should the 

area become attractive for expansion. The proposed merger, therefore, would 

not appear to have an adverse effect on potential competition.

Basis for Corporation approval, July 31, 1973

Southern Bank and Trust Company, Mount Olive, North Carolina ("Southern"), a State nonmember insured bank with total resources of $33,948,000 

and IPC deposits of $27,696,000, has applied, pursuant to Section 18(c) and 

other provisions of the Federal Deposit Insurance Act, for the Corporation's 

prior consent to merge with Merchants & Farmers Bank, Macclesfield, North 

Carolina ("Merchants"), with total resources of $3,594,000 and IPC deposits 

of $2,864,000. The banks would merge under the charter and title of Southern 

and, as an incident to the merger, the sole office of Merchants would become a 

branch of the resulting bank, increasing the number of its offices to 15. Approval is also requested for the retirement provisions of preferred stock.

Competition. Southern operates a total of 14 offices in seven eastern North 

Carolina counties. Its main office and three branches are in Wayne County, and 

the remaining 10 branches are well distributed among Duplin, Lenoir, Pitt, 

Bertie, Martin, and Beaufort Counties. Southern is the 26th largest commercial 

bank in North Carolina, with 0.3 percent of the State's total commercial bank 

deposits. It is one of five North Carolina banks controlled by the Holding family 

and their interests. These banks hold in the aggregate about 9.7 percent of the 

State's total commercial bank deposits.

Merchants operates its only office in Macclesfield, Edgecombe County, 

about 55 miles northeast of Southern's main office. Macclesfield is a small 

(1970 population 536) rural community located in southern Edgecombe County (1970 population 52,341, down 3.5 percent since 1960). Merchants is the

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 107

second smallest commercial bank in North Carolina and has only a nominal 

share of the State's total commercial bank deposits.

Edgecombe County has about an equal mix of agriculture and industry, 

with the industry concentrated in the county's only two cities of any consequence, Tarboro, the county seat, and Rocky Mount (the latter being partially in Nash County), the former about 14 miles northeast and the latter about 

20 miles northwest of Macclesfield. Edgecombe County's 1971 household 

median income was $5,786, far below the $7,177 average for the State.

The competitive effects of the proposed merger would be felt most immediately and directly within approximately a 15-20 mile radius of Macclesfield, 

an area of mostly small communities that would also include Tarboro and 

Rocky Mount as well as Wilson, in neighboring Wilson County. Merchants 

holds the next-to-smallest share (0.9 percent) of the local IPC deposits of 11 

commercial banks within this area, but First-Citizens Bank & Trust Company, 

one of the other banks under common control with Southern, holds 8.3 percent of local commercial bank IPC deposits, ranking fifth in this respect among 

the 11 banks.

Southern's closest office to Macclesfield is in Robersonville, about 25 miles 

east of Macclesfield. In view of the distance between these offices, the convenient availability of numerous other commercial banking alternatives, and 

the fact that neither bank originates any significant volume of business from 

areas served by the other, the proposed merger would not eliminate any significant existing competition between the two banks. While some existing competition between Merchants and First-Citizens Bank & Trust Company would 

be eliminated by the proposed merger, this competition is not significant due 

to Merchants' size and unaggressive stance, the numerous alternatives available 

and First-Citizens' relatively small share of the local market.

North Carolina law permits statewide de novo branching, but the likelihood 

of increased competition arising between Southern (or any bank under common control with Southern) and Merchants through additional de novo branching in the future is remote. Merchants has neither the resources nor the managerial depth for such de novo branching activities against the much larger 

banks whose offices abound throughout the area. Southern and the other 

banks under common control are not likely to be attracted to Macclesfield or 

the rest of the local banking market Merchants serves because of the low 

income levels that prevail, the limited growth potential of the area, the competition to be encountered, and the relatively low population per commercial 

bank office that already exists in the area. The proposed merger, accordingly, is 

not likely to eliminate any significant potential for increased competition between Merchants and Southern (or any bank under common control) that 

might arise through de novo branching in the future.

Because of Merchants' small size and the limited percentage of the State's 

total commercial bank deposits held by Southern and the four other North 

Carolina banks under common control, the proposed merger would have no 

perceptible effect on the statewide commercial banking structure in North 

Carolina.

Based on the foregoing, the Board of Directors has concluded that the 

proposed merger would not, in any section of the country, substantially lessen 

competition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

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Financial and Managerial Resources; Future Prospects. The financial resources of Southern and Merchants are adequate. Although Southern's managerial resources are satisfactory, Merchants faces a management succession 

problem and its future prospects of operating independently would appear to 

depend upon obtaining successor management.Southern's future prospects are 

satisfactory, as are the future prospects of the resulting bank.

Convenience and Needs o f the Community to be Served. The proposed 

merger would have little effect on the services presently offered in any of the 

areas where Southern now operates. The small population in the limited area 

around Macclesfield would be benefited to the extent that a small, rural nonpar bank would be replaced by a branch of a larger, more aggressive full-service 

bank that clears items at par. In addition, the legal lending lim it available at the 

Macclesfield office would be increased from approximately $56,000 to approximately $123,E>00.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

I n

operation

T o be

operated

Continental Bank

Houston, Texas

(change title to Continental Bank 

of Texas)

170,547 1 2

to merge with

Bank of Texas

Houston

188,119 2

Summary report by Attorney General, February 28, 1973

Bank of Texas and New Continental Bank are located almost immediately 

adjacent to each other in downtown Houston; their offices are situated about 

600 feet apart. The merging banks are direct competitors in the City of Houston, in Harris County and in the four county area comprising the Houston 

SMSA.

There are 82 banks in the City of Houston, holding more than $6.2 billion 

in total deposits. As of June 30, 1972, Bank of Texas, with 2.5 per cent of 

total city deposits, ranked seventh among these banks, and New Continental 

Bank, with 2.2 per cent of city deposits, ranked eighth. First City Bancorporation's subsidiaries, led by First City National Bank, ranked first with total 

deposits of $1.44 billion, or 23 per cent of total city deposits. The top four 

banks, together with their affiliates, held 59 per cent of city deposits, as of 

June 30, 1972.

The competitive situation in Harris County is similar to that existing in the 

City of Houston. Of the 116 banks operating in Harris County on June 30, 

1972, Bank of Texas ranked seventh with 2.32 per cent of county deposits

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while New Continental Bank, with 2.04 per cent of county deposits, ranked 

eighth. First City National Bank of Houston and Texas Commerce National 

Bank, together with affiliates of both, ranked first and second among the 

Harris County banks with 21 per cent and 17 per cent, respectively, of total 

county deposits.

The Houston SMSA encompasses the four Texas counties of Harris, Fort 

Bend, Montgomery and Liberty. There are six banks located in Montgomery 

County, including Conroe Bank, another subsidiary of Allied Bancshares. Conroe Bank ranked second among the six Montgomery County banks, holding 32 

per cent of Montgomery County deposits, as of June 30, 1972, and accounted 

for 0.36 per cent of total deposits held by banks in the Houston SMSA. New 

Continental Bank, the eighth ranking bank in the SMSA, as of June 30, 1972, 

held 1.97 per cent of SMSA deposits, and Allied Bancshares (through New 

Continental Bank and Conroe Bank) thus accounted for 2.33 per cent of total 

deposits in the Houston SMSA. Bank of Texas, the seventh largest bank in the 

SMSA, held 2.24 per cent of SMSA deposits, as of June 30, 1972. As a result 

of this acquisiton Allied will become the fifth largest banking organization in 

the Houston SMSA, in Harris County and in the City of Houston.

Concentration in the Houston area is rapidly increasing. The top four banking organizations in the City of Houston now control more than 59 per cent of 

total city deposits. The proposed merger will further increase concentration in 

the Houston area, and will eliminate direct competition between Bank of Texas 

and Allied's subsidiary banks in the City of Houston, in Harris County and in 

the four county area comprising the Houston SMSA.

In addition, New Continental Bank and Bank of Texas are two of the very 

small number of substantial but not dominant downtown Houston banks 

which are not affiliated with the very largest Texas banking organizations. As 

such, they represent presumably desirable entry vehicles for other Texas banking organizations wishing to enter the Houston banking market. To the extent 

that a substantial downtown organization is seen as necessary or desirable for 

effective entry by such organizations in order to compete with the very largest 

Texas organizations already represented in Houston, the acquisition of Bank of 

Texas by Allied, through its combination with New Continental Bank, may 

make such entry more difficult.

Overall, we conclude that the proposed merger would have an adverse competitive effect.

Basis for Corporation approval, July 31, 1973

Continental Bank, Houston, Texas, a State nonmember insured bank with 

total resources of $170,547,000 and total IPC deposits of $101,648,000, has 

applied, pursuant to Section 18(c) and other provisions of the Federal Deposit 

Insurance Act, for the Corporation's prior written consent to merge with Bank 

of Texas, Houston, Texas, a State nonmember insured bank with total resources of $188,119,000 and total IPC deposits of $134,041,000, under the 

charter of Continental Bank and with the title "Continental Bank of Texas." In 

order to comply with State law, the only office of Continental Bank would be 

discontinued, and the resulting bank would operate at the present main office 

of Bank of Texas and its one facility.

Competition. Continental Bank is controlled by Allied Bancshares, Inc., 

Houston, Texas, ("A llied"), a registered bank holding company that also holds

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110 FEDERAL DEPOSIT INSURANCE CORPORATION

control of The Conroe Bank, Conroe, Texas (40 miles from Houston) (total 

assets $35 million) and Merchants Bank, Port Arthur, Texas (60 miles from 

Houston) (total assets $76 million). Bank of Texas is controlled by Houston 

First Financial Group, Inc. ("First Financial"), which, because of its control of 

Houston First Savings Association, Houston, Texas (total resources $284 million), a local building and loan association, is seeking to divest itself of its bank 

subsidiary in order to bring itself into compliance with relevant rulings of the 

Board of Governors of the Federal Reserve System with respect to the operation of a savings; and loan association by a registered bank holding company.

Both Continental Bank and Bank of Texas are located in the heart of 

downtown Houston, which is the sixth largest city in the United States. The 

population of the Houston SMSA, consisting of Brazoria, Fort Bend, Harris, 

Liberty, and Montgomery Counties, increased 40.0 percent between 1960 and 

1970, from 1,418,323 to 1,985,031. Most of the population in the SMSA is 

concentrated in the city of Houston, whose urban population increased 31.2 

percent in the decade preceding 1970, to 1,231,394. The city of Houston, 

located in the southeastern part of the State near the coast, is basically a 

manufacturing and retail service center. It is also the second largest inland 

seaport in the nation, with an increasing number of local firms engaged in 

international trade. The Houston area contains approximately 23 percent of 

the State's total working force, and they earn about 26 percent of its total 

wages. In 1972 the median household income for Harris County, of which 

Houston is the county seat, was $9,595, compared to $7,831 for the State of 

Texas as a whole. The rapid and stable growth of the Houston area is expected 

to continue in the future.

The propose;d merger would have its most im m ediate and direct com petitive 

impact in the city of Houston, although some effects will be felt elsewhere in 

the Houston SMSA since both banks draw more than a nominal share of their 

deposit and loan business from outside the city. Within the city of Houston, 

Continental Bank held 1.8 percent and Bank of Texas 2.8 percent of total 

commercial bank IPC deposits on June 30, 1972. Of the 86 commercial banks 

operating in the city at that time, the $1.3 billion-deposit First City National 

Bank of Houston was the largest, the $1.1 billion-deposit Texas Commerce 

Bank, N.A., was the second largest, the $667 million-deposit Bank of the 

Southwest, N.A., was the third largest, the $325 million-deposit Houston 

National Bank was the fourth largest, and the $208 million-deposit HoustonCitizens Bank & Trust Company (an affiliate of First National Bank in Dallas) 

was the fifth largest. These five banks on June 30, 1972, held in the aggregate

53.7 percent of the total commercial bank IPC deposits in the city. Four other 

banks, besides Continental Bank and Bank of Texas, exceeded $100 million in 

total deposits with the 75 remaining banks ranging in size from very small to 

$79 million in deposits.

The banking structure of the SMSA as a whole was similar. The same five 

banks held slightly more than 50 percent of total commercial bank deposits, 

while Continental Bank held 1.9 percent of the deposits and Bank of Texas 2.1 

percent. 145 banks shared the balance of the SMSA's total commercial bank 

deposits.

Continental Bank and Bank of Texas are two blocks apart in downtown 

Houston. Each has all the powers of a State-chartered commercial bank in 

Texas and each has trust powers as well. In a number of loan and deposit

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categories they compete with each other for banking business, but their relative 

shares of the banking business in the Houston market are so small that the 

Board of Directors cannot find, under current judicial precedents, that the 

effect of the proposed merger "may be substantially to lessen competition" 

within the meaning of Section 7 of the Clayton Act, as incorporated into the 

relevant provisions of the Bank Merger Act of 1966.* Moreover, there are 

major differences in the loan and service activities of the two banks. Bank of 

Texas concentrates on commercial lending (70.0 percent of total loans, as 

compared to 36.5 percent for Continental Bank), while Continental Bank is 

oriented toward installment lending (24.2 percent of total loans, as compared 

to 3.7 percent for Bank of Texas) and residential real estate loans (18.7 percent 

of total loans, as compared to none for Bank of Texas). Bank of Texas does 

not emphasize correspondent banking activity, while Continental Bank has 

been much more aggressive in this area. Bank of Texas has an active and 

expanding trust department, whereas Continental Bank has a small trust department and does not actively solicit trust business. Bank of Texas has its own 

data processing facility, international banking department and detached drivein facility, but Continental Bank is inactive in these fields. For all of these 

reasons, the Corporation does not regard the competition that presently exists 

between Continental Bank and Bank of Texas as substantial enough to warrant 

denial of the application.

While Texas State law prohibits branch banking, the two banks could find 

themselves in increasing competition in the future (i) through changes in management policy that would make each bank a more significant competitor of 

the other throughout the broad range of commercial bank services, or (ii) 

through the affiliation of Bank of Texas with a multibank holding company 

not presently represented in the Houston banking market. These considerations, however, appear to be less serious in the Houston market than they 

would be in a concentrated or stagnant market having relatively few banks. In 

this connection, it should be noted that 15 commercial banks in addition to 

Continental Bank and Bank of Texas are located within a radius of 10 blocks 

of the main office of the Bank of Texas. Four banks in Houston, in addition to 

the five largest, also exceed $100 million in deposit size and many of the 75 

remaining banks in the city are likely to reach that deposit size in the future as 

Houston's booming growth continues. Numerous new banks continue to be 

chartered each year in this growth area. It would appear, therefore, that the 

city of Houston has now, and will continue to have if this merger is approved, a 

large number of growing banks in vigorous competition and that holding companies not presently represented in the Houston market will have ample opportunity to enter that market in the future through the acquisition of banks 

comparable in deposit size to Bank of Texas, through "foothold" acquisitions 

or through the chartering and acquisition of de novo banks. For these reasons, 

it is the Board's opinion that the elimination of any potential competition 

between the two banks would have no adverse effect on the structure or vigor 

of commercial bank competition in the Houston SMSA in the future. In fact,

*cf. United States v. Philadelphia National Bank, 374 U.S. 321 (1963); United States v. 

Third National Bank in Nashville, 390 U.S. 171 (1968); United States v. Phillipsburg

National Bank, 399 U.S. 350 (1970). See also the Corporation's decision approving the 

proposed merger of The Nashville Bank and Trust Co. and Capital City Bank of Nashville,

1970 FDIC Annual Report 93.

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112 FEDERAL DEPOSIT INSURANCE CORPORATION

the proposed merger may create a bank better able to compete across the 

broad range of bank services with the five largest banks in the market.

Based on the foregoing, the Board of Directors is of the opinion that the 

proposed merger would not, in any section of the country, substantially lessen 

competition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Both Continental 

Bank and Bank of Texas have satisfactory financial and managerial resources, 

as would the resulting bank. Favorable future prospects for the resulting bank 

seem assured by the rapidly expanding economy of the Houston area.

Convenience and Needs of the Community to be Served. Customers of both 

banks would benefit from the more complete range of commercial bank services that could be offered to all of them through the complementary skills and 

experience of each bank's management team. Certain services, including international banking services, municipal bond underwriting services, data processing services, and trust services, could be significantly expanded by the larger 

resulting bank. In addition, the resulting bank would have a lending lim it of 

$3.5 million, as contrasted with Continental's present limit of $1.5 million and 

Bank of Texas' present lim it of $2 million. While all of these services are 

presently available at the larger banks in downtown Houston, present customers of both banks should be convenienced by not having to bank elsewhere.

The premises to be vacated by Continental Bank are to be occupied by the 

main office of Greater Houston Bank that is presently located only a short 

distance away. Management of Greater Houston Bank intends to convert its 

present office to a facility, so there would be no reduction in the number of 

commercial banking offices presently serving the general public in the Houston 

market.

Based on trie foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(m

thousands

of dollars)

Banking Offices

In

operation

T o be

operated

Bank of Virginia-Petersburg

Petersburg, Virginia 

(in organization)

2,400 2

to acquire a portion of the assets and

assume a portion of the liabilities of

Bank of Virginia-Central

Richmond

29,47 T 1 *

Summary report by Attorney General, July 9, 1973

The proposed transaction is part of a plan through which the Petersburg 

office of Bank of Virginia-Central would be transferred to a newly organized

* Resources and branch office of Bank of Virginia-Central to be acquired by Bank of 

Virginia-Petersburg.

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bank. Since both the transferring bank and the acquiring bank are subsidiaries 

of Bank of Virginia Company, a bank holding company, the proposed transaction is simply a corporate reorganization and would have no competitive effect.

Basis for Corporation approval, August 20, 1973

Pursuant to Sections 5 and 18(c) and other provisions of the Federal Deposit Insurance Act, applications have been filed for Federal deposit insurance 

and consent to exercise trust powers on behalf of Bank of Virginia-Petersburg, 

Petersburg, Virginia ("New Bank"), with total assets of $2,400,000, a proposed 

new bank in organization, and for consent to its acquiring the assets and 

assuming liability to pay deposits made in the Petersburg Branch of Bank of 

Virginia-Central, Richmond, Virginia, a State member bank. This branch is 

located in the independent city of Petersburg and has total resources of 

$29,471,000. New Bank would operate from a newly established main office 

location and from the premises of the aforementioned Petersburg Branch of 

Bank of Virginia-Central, both within Petersburg.

The new bank formation and the acquisition are a means by which Bank of 

Virginia Company, Richmond, Virginia, a registered bank holding company of 

which Bank of Virginia-Central is a wholly owned subsidiary, may effect a 

corporate reorganization to create an institution with an improved competitive 

stature in the Petersburg area. This reorganization would enable New Bank to 

establish de novo branches in the area, a method of expansion not available 

under existing statutes to Bank of Virginia-Central. Application by Bank of 

Virginia Company for approval to acquire 100 percent of the voting shares of 

New Bank is pending before the Board of Governors of the Federal Reserve 

System. New Bank will not be in operation as a commercial bank prior to the 

acquisition. Subsequent to the acquisition's consummation, New Bank will 

operate the same banking business at the existing Petersburg location of Bank 

of Virginia-Central and at a newly opened main office in that city, with a 

management team assembled from present directors and officers of Bank of 

Virginia-Central. The proposal will not, per se, affect the structure of commercial bank competition in the market served by the Petersburg Branch of 

Bank of Virginia-Central or result in changes in banking services heretofore 

provided by this branch. All factors considered pertinent to the subject applications are favorably resolved.

The Board of Directors, on the basis of the foregoing information, has 

concluded that approval of the applications is warranted.

Resources

(in

thousands

o f dollars)

Banking Offices

In

operation

T o be

operated

Bank of Mississippi 126,073 22 23

Tupelo, Mississippi

to merge with

Bank of Olive Branch 11,962 1

Olive Branch

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114 FEDERAL DEPOSIT INSURANCE CORPORATION

Summary report by Attorney General, August 9, 1973

Bank is situated about 89 miles from Applicant's nearest office; thus it 

appears that the proposed acquisition would not eliminate substantial existing 

competition. Applicant could legally establish de novo offices in the area 

served by Bank. However, in view of the modest size of Bank and the existence 

of other significant potential entrants, we conclude that the proposed transaction would not eliminate potential competition.

Therefore, we conclude that this proposed acquisition would not have a 

substantial competitive impact.

Basis for Corporation approval, September 24, 1973

Bank of Mississippi, Tupelo, Mississippi, an insured State nonmember bank 

with total resources of $126,073,000 and IPC deposits of $99,168,000, 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 Bank of Olive Branch, Olive Branch, Mississippi, having total 

resources of $11,962,000 and IPC deposits of $8,979,000.* As an incident to 

the merger, Bank of Mississippi would operate the two approved offices of 

Bank of Olive Branch as branches, thereby increasing the number of its offices 

to 24.

Competition. Bank of Mississippi operates offices in eight counties of northeastern Mississippi. It derives a significant amount of business from these counties and also from Union County, and the nine counties comprise the bank's 

primary trade; area. Historically agricultural, the economy of this region has 

become fairly well balanced between agriculture and light industry during the 

past decade. The population of these nine counties increased during the 1960s 

by 4.3 percent and now totals 203,898— comparing favorably with a statewide 

population increase of only 1.8 percent. Bank of Mississippi presently has no 

office in De Soto County.

Bank of Olive Branch operates its sole office in Olive Branch (population

1,513) in northeastern De Soto County (1970 population 35,885— an increase 

of 50.2 percent since 1960). A branch has been approved for establishment 

within the village of Olive Branch but is not yet open. De Soto County, 

principally an agricultural section of northwestern Mississippi, adjoins Memphis, Tennessee, and is separated by Marshall County, Mississippi, from the 

trade area presently served by Bank of Mississippi. A substantial population 

growth has occurred in northwestern De Soto County since 1960 as the suburbs of Memphis continue to expand southerly into areas adjacent to State 

Routes 61 and 51 and Interstate 55. To date, however, the village of Olive 

Branch and its environs have not participated in this population expansion.

The area served by Bank of Olive Branch comprises De Soto County and the 

northwestern quarter of neighboring Marshall County. In this market, Bank of 

Olive Branch holds approximately 20.4 percent— the second largest share— of 

the IPC deposits held at June 30, 1973, by the 10 commercial bank offices 

therein. The Hernando Bank ranks first in these deposits, its percentage share 

of the market exceeding that of Bank of Olive Branch by a substantial margin.

* Figures for Bank of Mississippi have been adjusted for the subsequent merger of The 

Bank of West Point, West Point, Mississippi.

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The office of Bank of Mississippi nearest to Olive Bank is located in Ecru, 

Pontotoc County, some 65 road miles to the southeast. The banks operate in 

separate trade areas and it appears that no significant existing competition 

would be eliminated by their proposed merger.

Although a potential for increased competition between the two banks in 

the future through de novo branching would be foreclosed by the proposed 

merger, this appears to have insufficient anticompetitive significance to warrant 

denial of the application. While Bank of Olive Branch has recently evidenced an 

interest in de novo branching, it is hampered by a lack of branching experience, 

limited personnel and limited financial resources. It appears unlikely that it 

would find de novo entry into Bank of Mississippi's trade area feasible within 

the reasonably foreseeable future in view of the distances involved and the 

competition to be encountered. Bank of Mississippi, on the other hand, in its 

search for market expansion opportunities, would be likely to find De Soto 

County, an area of continuing rapid growth with income levels comparable to 

those of the State as a whole, relatively attractive for de novo branching. 

Several facts serve to mitigate this anticompetitive aspect of the proposed 

merger, however. While the merger would provide Bank of Mississippi with the 

second largest share of the local market's commercial bank IPC deposits, that 

share would be substantially less than the percentage share held by The 

Hernando Bank, and First National Bank, Southaven, would also be in significant competition. These banks, together with five others, would provide 

numerous alternatives for public choice in this market of approximately

40,000 persons. In addition, three of Mississippi's 10 largest commercial banks 

(in terms of total deposits held at March 28, 1973) are potential entrants into 

De Soto County: the $125-million deposit Grenanda Bank, the $70-million 

deposit Bank of Clarksdale, and The Peoples Bank and Trust Company, 

Tupelo, with $66 million of deposits. Moreover, many residents of the county 

commute for employment to the nearby Memphis area, and the seven commercial banks of th a t c ity , including tw o w ith assets exceeding $1.3 b illio n , 

offer significant competition throughout De Soto County.

In its widest potential market under State law— an area within 100 miles of 

Tupelo— Bank of Mississippi controls 9.7 percent of total IPC deposits, held at 

June 30, 1972, by all offices of the 78 commercial banks presently represented 

therein. Its share of this market would be increased by the proposed merger to

10.6 percent. Statewide, Bank of Mississippi holds only 2.7 percent of aggregate commercial bank IPC deposits; post-merger its share would become 2.9 

percent. The proposed merger, accordingly, appears unlikely to affect adversely 

the structure of commercial bank competition in any relevant market.

Based on the foregoing, the Board of Directors has concluded that the 

proposed merger would not, in any section of the country, substantially lessen 

competition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Both Bank of Mississippi and Bank of Olive Branch have adequate financial and managerial resources, as would the resulting bank. Future prospects for the resulting bank 

appear favorable.

Convenience and Needs o f the Community to be Served. De Soto County 

and adjacent northwestern Marshall County would be provided by the merger 

with the full services of one of the State's major commercial banks. Trust

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116 FEDERAL DEPOSIT INSURANCE CORPORATION

facilities and investment services would be offered for the first time at the 

Bank of Olive Branch's offices. Expanded data processing services, mortgage 

lending services, industrial development services, and charge card services 

would also be offered. An aggressive management, operating with a lending 

lim it in excess of $1 million, should stimulate competition in this market to 

the benefit of the business community and the general public.

The Board of Directors, accordingly, has concluded that approval of the 

application is warranted.

Resources

(in

thousands

o f dollars)

Banking Offices

I n

operation

T o be

operated

Bank of Clarksdale 78,432 12 14

Clarksdale, Mississippi

to merge with

Bank of Oxford 23,880 2

Oxford

Summary report by Attorney General, September 13, 1973

The nearest offices of the parties are approximately 28 miles apart, with 

some competitive alternatives in the intervening area. It appears that the proposed transaction would eliminate only a limited amount of existing competition.

Bank of Clarksdale could legally establish de novo offices in the area served 

by Bank of Oxford. However, in view of the existence of other significant 

potential entrants, we conclude that the proposed acquisition will not eliminate substantial potential competition.

Therefore, we conclude that the proposed transaction would not have a 

substantial competitive impact.

Basis for Corporation approval, October 15, 1973

Bank of Clarksdale, Clarksdale, Mississippi, an insured State nonmember 

bank having total assets of $78,432,000 and IPC deposits of $61,525,000, 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 Bank of Oxford, Oxford, Mississippi, with total assets of 

$23,880,000 and IPC deposits of $16,446,000. As an incident to the merger, 

the three approved offices of Bank of Oxford would become branches of Bank 

of Clarksdale, increasing to 15 the total number of its offices.

Competition Bank of Clarksdale operates 12 offices in five northwestern 

counties of the State of Mississippi. Its primary trade area comprises the Counties of Coahoma, Panola, and Quitman and includes adjacent portions of Bolivar, Sunflower, Tallahatchie, Tunica, and Yalobusha Counties. The economy of 

this region is predominantly agricultural, although light industry has become

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 117

more significant during the past decade. The region's total population, now 

estimated at 121,700, decreased some 16 percent between 1960 and 1970, in 

contrast to a 1.8 percent increase statewide. Median income levels throughout 

the region are substantially below the State average, which itself is the second 

lowest in the country. Bank of Clarksdale presently has no office in Lafayette 

County.

Bank of Oxford has three offices, including one as yet unopened, in Oxford 

(population 13,846), the centrally located county seat of Lafayette County 

(1970 population 24,181, up 13.2 percent between 1960 and 1970). Lafayette 

County is situated in the center of northern Mississippi immediately east of 

Panola County. Its economy is predominantly agricultural, although considerable commercial activity is centered around the 8,000-student University of 

Mississippi in the city of Oxford. Light manufacturing has also become more 

significant in Oxford during recent years, with some 1,300 people being employed by six major area firms.

Lafayette County, together with adjacent portions of Panola and Yalobusha 

Counties, comprises the local banking market within which Bank of Oxford 

operates, and it is here that the proposed merger would have its most immediate and direct impact. Within this market, Bank of Oxford holds 33.6 percent 

of aggregate area commercial IPC deposits. Its local competitor, The First 

National Bank of Oxford, holds approximately the same percentage, while two 

other competitors, both located in Water Valley, Yalobusha County, hold the 

remaining area deposits between them.*

The two banks currently operate in separate banking markets. Offices of 

Bank of Oxford are located some 27 road miles east of the nearest office of 

Bank of Clarksdale, in Batesville, Panola County. There is some overlapping of 

trade areas in the sparsely populated region of eastern Panola County and 

western Lafayette County, but this overlap appears to be of no competitive 

significance, and the banks report few common depositors or borrowers. It 

would appear that no significant existing competition between the two banks 

would be eliminated by their proposed merger.

Mississippi law permits each bank to branch into areas served by the other, 

subject to restrictions in the case of smaller communities of specified population where there already are existing bank offices. These restrictions would not 

prevent either bank from branching de novo into the city where the other has 

its main office. Bank of Oxford, however, would probably find additional 

locations in expanding Lafayette County more attractive for de novo branching 

than entry into any county where Bank of Clarksdale is presently represented— areas whose populations declined during the 1960s at rates varying from

4.7 percent to 29.5 percent and whose income levels range from 10 percent to 

38 percent below those of Lafayette County. Bank of Clarksdale, on the other 

hand, would probably find Lafayette County, especially the rapidly growing 

city of Oxford, attractive for de novo entry within the foreseeable future. This 

anticompetitive aspect of the proposed merger is mitigated, however, by the 

presence of a number of commercial banks in northern Mississippi that must 

also be considered potential entrants into the Oxford banking market. These 

banks include the $93.9 million IPC deposit Bank of Mississippi and the $56.8

*A State charter has recently been approved for a fifth bank, the proposed First State 

Bank & Trust Company of Oxford, now in process of organization.

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118 FEDERAL DEPOSIT INSURANCE CORPORATION

million IPC deposit The Peoples Bank and Trust Company, both headquartered 

in Tupelo, as well as the $103.9 million IPC deposit Grenada Bank, Granada.

In its maximum potential market, which under State law is that portion of 

Mississippi lying within a 100-mile radius of Clarksdale, Bank of Clarksdale 

controls only 6.3 percent of the total IPC deposits held at June 30, 1972, by 

all offices in the area of the 78 commercial banks represented therein— a share 

that would be increased by the proposed merger to 7.9 percent. In the State as a 

whole, Bank of Clarksdale holds only 1.7 percent of all Mississippi commercial 

bank IPC deposits, a figure that would be increased to 2.1 percent if the 

proposed merger is consummated. It thus appears unlikely that the proposed 

merger would have any adverse competitive impact upon the structure of commercial banking in these relevant areas.

Under the circumstances presented, the Board of Directors is of the opinion 

that the proposed merger would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner 

be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Bank of Clarksdale 

has adequate financial and managerial resources, while those of Bank of Oxford 

are marginally satisfactory. The resulting bank would have adequate financial 

and managerial resources and favorable future prospects.

Convenience and Needs o f the Community to be Served. The proposed 

merger would provide customers of the Bank of Oxford with broader services 

and more modern main office facilities. Trained professional management, 

operating with a lending lim it that exceeds $1 million, would bring new sophistication to business customers, while trust services and student loans would 

be offerd for the first time at Bank of Oxford locations.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands

o f dollars)

Banking Offices

In

operation

T o be

operated

Washington Mutual Savings Bank

Seattle, Washington

1,258,554 29 30

to consolidate with

Grays Harbor Savings and Loan

Association

Aberdeen

6,250 1

Summary report by Attorney General, August 13, 1970

Aberdeen is about 40 miles west of Olympia, the location of the nearest 

office of The Washington Mutual Savings Bank ("Bank"). Bank currently obtains an insignificant portion of its deposits from the service area of The Grays 

Harbor Savings and Loan Association ("Association").

Bank could enter the Aberdeen area by opening a new office (RCWA 

32.04.030). Association is the smallest of the three serving the Aberdeen area,

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and it has less than 8 per cent of the deposits in all such associations in 

Aberdeen. Hence, this consolidation is not likely to have any significantly 

adverse effect on potential competition.

Basis for Corporation approval, October 15, 1973

Washington Mutual Savings Bank, Seattle, Washington, an insured mutual 

savings bank with total deposits of $1,122,759,000 as of June 30, 1973, has 

applied, pursuant to Section 18(c) and other provisions of the Federal Deposit 

Insurance Act, for the Corporation's prior approval to consolidate with Grays 

Harbor Savings and Loan Association, Aberdeen, Washington, which had total 

deposits of $5,300,000 as of March 31, 1973. The institutions would consolidate under the charter and title of Washington Mutual Savings Bank, and 

the only office of Grays Harbor Savings and Loan Association would become a 

branch of Washington Mutual Savings Bank. Prior to the consolidation, Grays 

Harbor Savings and Loan Association proposes to convert to a mutual savings 

bank.

The Corporation denied the subject application on December 18, 1970, and, 

upon reconsideration, affirmed its denial on July 30, 1971. The reasons for 

those actions are fully detailed in the original Basis for Corporation Denial 

(1970 FDIC Annual Report 141), the StatementsUpon Reconsideration (1971 

FDIC Annual Report 164), and in the briefs submitted by the Corporation to 

the U.S. District Court for the Western District of Washington (347 F. Supp. 

790) and the U.S. Court of Appeals for the Ninth Circuit (Civil Action No. 

72-2972).

In view of the adverse decisions of those two courts and the determination 

of the Solicitor General of the United States not to petition the Supreme Court 

of the United States for a w rit of certiorari, the Corporation is required to 

comply with an order to approve the said merger issued October 25, 1972, by 

the U.S. District Court for the Western District of Washington, the effectiveness of which was stayed through October 10, 1973, pending completion of 

various appellate steps but which is now fully effective.

The merger is, accordingly, approved.

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

T o be

operated

Hancock Bank

Gulfport, Mississippi

136,057 12 13

to merge with

Bank of Commerce of Poplarville

Poplarville

12,031 1

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Summary report by Attorney General, July 17, 1973

The home offices of the merging institutions are located about 50 miles 

apart. The closest office of Hancock Bank to Poplarville is about 38 miles. 

Thus, it does not appear that the proposed merger will eliminate significant 

existing competition between the participating institutions. Hancock Bank is 

the largest bank which may legally branch into Pearl River County, although de

novo branching directly into Poplarville would be prohibited by the home 

office protection provisions of state law. And it seems clear that Hancock Bank 

has the capability for de novo expansion into Poplarville Bank's service area. 

However, in view of the relatively modest size of the Poplarville Bank and the 

existence of other potential entrants, we conclude that the proposed merger 

will not eliminate substantial potential competition.

Therefore, we conclude that the proposed merger would not have a substantial competitive impact.

Basis for Corporation approval, October 30, 1973

Hancock Bank, Gulfport, Mississippi, an insured State nonmember bank 

with total resources of $136,057,000 and total IPC deposits of $98,063,000, 

has applied, pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the Corporation's prior consent to merge with Bank 

of Commerce of Poplarville, Poplarville, Mississippi, ("Bank of Commerce"), 

with total resources of $12,031,000 and total IPC deposits of $8,130,000. 

These banks would merge under the charter and title of Hancock Bank and, as 

an incident to their merger, the sole office of Bank of Commerce would become a branch of the resulting bank, increasing the number of its offices to 13.

Competition. Hancock Bank operates two offices in Hancock County (1970 

population 17,387) and 10 offices in Harrison County (1970 population 

134,582), two of Mississippi's Gulf Coast counties. These two counties grew in 

population by 23.8 percent and 12.6 percent, respectively, during the 1960s in 

contrast to the statewide population increase of 1.8 percent. Their economy is 

centered in commercial fishing and seafood processing, tourism, the Port of 

Gulfport, and Federal installations, although northern sectors of these two 

counties are agricultural.

Bank of Commerce operates its sole office about 50 miles northwest of 

Gulfport, in Poplarville (population 2,312), the county seat of Pearl River 

County (population 27,802). This county, an agricultural region adjoining the 

northern boundary of Hancock County, recorded a 24.1 percent increase in 

population during the 1960s.

The proposed merger would have its most direct and immediate impact in 

an area approximately 15-20 miles surrounding Poplarville, where Bank of 

Commerce has its only office. This area includes the northern portion of Pearl 

River County, and the cities of Lumberton (population 2,084) in Lamar 

County and Bogalusa, Louisiana (population 18,412), which lie 13 miles north 

and 18 miles west, respectively, of Poplarville. Of the five banks presently in

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this local banking market, Bank of Commerce is the smallest in overall size but 

holds the fourth largest share of area IPC deposits (12.9 percent).*

Hancock Bank is not represented in this local banking market. The closest 

offices of Hancock Bank and Bank of Commerce are some 38 road miles apart 

and neither generates more than nominal deposits or loans from areas served by 

the other. The proposed merger, accordingly, would not eliminate any significant existing competition between the two banks. In fact, competition within 

the local banking market should be intensified by the entry of another large 

institution such as Hancock Bank.

Mississippi law permits each of the two participating banks to branch de

novo into areas served by the other, but not into banked communities the size 

of Poplarville and Lumberton. However, no significant potential for increased 

competition between the two banks through de novo branching in the future 

would be lost by their proposed merger. Bank of Commerce has an aging 

management with no apparent inclination to establish additional offices. Hancock Bank would have few, if any, attractive locations available to it for a 

branch bank or a branch office in northern Pearl River County or southern 

Lamar County, and would be more likely in any event to seek out possible de

novo locations elsewhere within its legal branching area.

In that legal branching area, which comprises all points in Mississippi within 

100 miles of Gulfport, the resulting bank would be the largest of 34 commercial banks with a 17 percent share of the total deposits held by these banks. 

Within the same area, First Mississippi National Bank, Hattiesburg, a $120 

million-deposit institution, would be a relatively close second in the competitive rankings. Statewide, the resulting bank would hold only 3 percent of all 

Mississippi commercial bank deposits.

Based on the foregoing, the Board of Directors has concluded that the 

proposed merger would not, in any section of the country, substantially lessen 

competition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Both banks have 

satisfactory financial resources and future prospects. There is lack of management depth at Bank of Commerce together with a health problem among its 

aging top management. Hancock Bank would provide satisfactory managerial 

resources to the resulting institution.

Convenience and Needs o f the Community to be Served. The merger would 

make available to residents, businessmen, and farm operators in Bank of Commerce's local banking market the full banking services of one of the State's 

larger banks. Home mortgage and consumer lending services are likely to be 

expanded significantly and Hancock Bank's $1.2 million lending limit should 

provide new competition for the branch of First Mississippi National Bank in 

Lumberton and for the Bogalusa commercial banks. Trust and computer services would be available for the first time at Bank of Commerce's present 

location. To the extent these services are available at offices of other banks in 

the market, the Poplarville office of the resulting bank would provide an additional alternative for such services.

*The State of Mississippi has approved a new State-chartered bank for Poplarville, but it 

has not yet opened.

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Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

122 FEDERAL DEPOSIT INSURANCE CORPORATION

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

T o be

operated

Bank of Virginia-Tidewater

Norfolk, Virginia

103,567 11 13

to merge with

Bank of Virginia-Southeast

Nansemond

5,015 2

Summary report by Attorney General, October 4, 1973

The merging banks are both majority-owned subsidiaries of the same registered bank holding company. As such, their proposed merger is essentially a 

corporate reorganization and would have no effect on competition.

Basis for Corporation approval, November 9, 1973

Bank of Virginia-Tidewater, Norfolk, Virginia ("Tidewater Bank"), a State 

nonmember insured bank with total resources of $103,567,000 and IPC deposits of $72,334,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to merge with Bank of Virginia-Southeast, Nansemond, Virginia ("Southeast Bank"), with total resources of $5,015,000 and IPC deposits of 

$4,135,000. The banks would merge under the charter and title of Tidewater 

Bank and, as an incident to the merger, the two offices of Southeast Bank 

would become branches of the resulting bank, increasing the number of offices 

to 13.

Both of the participating banks are owned by Bank of Virginia Company, 

Richmond, Virginia, a registered bank holding company. The proposed merger 

is designed to consolidate Bank of Virginia Company's interests in southeastern 

Virginia into a more easily administered regional bank and, as such, would not 

affect the competitive structure of the area. Although the resulting bank will 

be able to prov de trust services for customers of Southeast Bank, as well as a 

wider variety of time and savings accounts, there will be a minimal impact on 

the convenience and needs of the public.

The Board of Directors is of the opinion that the transaction would not, in 

any section of the country, substantially lessen competition, tend to create a 

monopoly, or in any other manner be in restraint of trade.

All other factors requiring consideration are favorably resolved.

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

T o be

operated

Manufacturers Bank 189,164 3 7

Los Angeles, California

to merge with

Lincoln Bank 32,410 4

Los Angeles

Summary report of Attorney General, October 4, 1973

Both parties to this merger are located in the Los Angeles Metropolitan area. 

Their nearest offices are located about seven miles apart, with a number of 

competitive alternatives in the intervening area. Although the proposed merger 

may eliminate some existing competition between the parties, it does not 

appear that banking concentration would be substantially increased in any 

relevant geographic market.

Therefore, we conclude that the proposed transaction would not have a 

substantial competitive impact.

Basis for Corporation approval, November 29, 1973

Manufacturers Bank, Los Angeles, California, a State nonmember insured 

bank with total resources of $189,164,000 and total IPC deposits of 

$139,808,000, has applied, pursuant to Section 18(c) and other provisions of 

the Federal Deposit Insurance Act, for the Corporation's prior consent to 

merge with Lincoln Bank, Los Angeles, California, with total resources of 

$32,410,000 and total IPC deposits of $25,521,000. The banks would merge 

under the charter and title of Manufacturers Bank and, as an incident to the 

merger, the four offices of Lincoln Bank would become branches of the resulting bank, which would then have a total of eight authorized offices.

Competition. Manufacturers Bank is headquartered in downtown Los 

Angeles and operates one branch in the Hollywood section of the city and one 

branch in the city of Beverly Hills. It also has approval for an additional branch 

in Newport Beach, Orange County, about 45 miles southeast of its main office. 

Lincoln Bank is headquartered in the Van Nuys section of Los Angeles and 

operates one branch each in Encino, Granada Hills, and Sherman Oaks, all 

within the city of Los Angeles. Lincoln Bank is owned by First Lincoln Financial Corporation, Los Angeles.

The most direct and immediate impact of the proposed merger would be 

felt in Los Angeles County. All the existing offices of both banks are located in 

the county, which had a 1970 population of 7,036,887, up 16.5 percent over 

1960. The county constitutes the Los Angeles-Long Beach SMSA, and there is 

widespread intracounty commutation. Economically, Los Angeles County is 

widely diversified, with such industries as electronics, aerospace, petroleum, 

and entertainment, as well as a rapidly growing volume of foreign trade. The 

1972 median household income for Los Angeles County was $9,354, compared 

to $9,209 for the State as a whole. Prospects appear bright for continued 

economic growth.

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124 FEDERAL DEPOSIT INSURANCE CORPORATION

Existing competition between Manufacturers Bank and Lincoln Bank is 

minimal. Their closest offices are about 10 miles apart, and there are a number 

of other commercial banks with offices in the intervening area, including offices of some of the largest banks in the State. Although Manufacturers Bank 

draws business from the San Fernando Valley (the location of Lincoln Bank's 

offices), it concentrates on medium-sized corporate and professional customers, while Lincoln Bank operates primarily as a retail bank serving small 

customers on a local basis. The volume of existing competition that the proposed merger would eliminate is insignificant in relation to the size of the Los 

Angeles County market, where each of the participating banks is a minor 

competitive factor.

Seventy-three commercial banks currently operate over 1,000 offices in Los 

Angeles County. As of June 30, 1973, these offices had total deposits in excess 

of $20 billion and the market was dominated by the two largest commercial 

banks in the Sterte, which shared approximately 53 percent of total commercial 

bank deposits in Los Angeles County. Manufacturers Bank had a 0.7 percent 

share of these deposits, and Lincoln Bank only 0.1 percent. Thus, the proposed 

merger would have virtually no effect on the structure of commercial banking 

in Los Angeles County.

Inasmuch as California law allows statewide branching, each bank could 

branch de novo into areas where the other has offices, thereby increasing 

competition between them in the future. Further, the banking philosophies of 

Manufacturers Bank and Lincoln Bank could change in the future and bring 

them into greater competition for the same types of business. However, in view 

of the insignificant market position of both banks and of the resulting bank, 

the weakened position of Lincoln Bank and the presence of numerous larger 

banks also able to branch de novo, any elimination of potential competition 

between Lincoln Bank and Manufacturers Bank that might result from their 

merger cannot be regarded as competitively significant.

Because of the relatively nominal percentage of statewide assets and deposits that the resulting bank would control, the proposed merger would have 

no perceptible affect on the structure of commercial banking in California as a 

whole.

In view of the foregoing, the Board of Directors is of the opinion that the 

proposed merger would not, in any section of the country, substantially lessen 

competition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. The proposed merger 

would resolve a number of problems presently facing Lincoln Bank relative to 

asset quality, inadequate capital, and lack of management depth. The resulting 

bank, like Manufacturers Bank today, would have satisfactory managerial resources and, with increasing capital accounts, adequate financial resources. The 

future prospects of Lincoln Bank operating independently are virtually nonexistent, but the future prospects of Manufacturers Bank and of the resulting 

bank are satisfactory.

Convenience and Needs o f the Community to be Served. Although the 

resulting bank would offer no new services that are not now conveniently available from a number of other alternatives, it would benefit Lincoln Bank's 

customers through more competent management, stronger financial resources, 

and improved capabilities for larger loans.

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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

I n

operation

T o be

operated

The Sanwa Bank of California 65,911 2 5

San Francisco, California

to purchase the assets and

assume the liabilities of

Charter Bank 27,560 3

Culver City

Summary report by Attorney General, August 9, 1973

The service areas of the parties are the San Francisco and Los Angeles Areas, 

respectively, and are separated by a distance of about 400 miles. Thus, the 

proposed merger would not eliminate any appreciable existing competition 

between the parties. Although Sanwa Bank of California may under California 

law branch into the Los Angeles area (as it presently proposed to do), the 

proposed acquisition of Charter Bank will not eliminate substantial potential 

competition.

We conclude that the proposed transaction would not have a substantial 

competitive impact.

Basis for Corporation approval, November 29, 1973

The Sanwa Bank of California, San Francisco, California ("Sanwa Bank"), a 

State nonmember insured bank with total resources of $65,911,000 and total 

IPC deposits of $46,452,000, has applied, pursuant to Section 18(c) and other 

provisions of the Federal Deposit Insurance Act, for the Corporation's written 

consent to purchase the assets of, and assume liability to pay deposits made in, 

Charter Bank, Culver City, California, with total resources of $27,560,000 and 

total IPC deposits of $21,471,000. The three offices of Charter Bank would be 

operated as branches of Sanwa Bank, increasing the number of its offices to 

five.

Competition. The main office of Sanwa Bank is in San Francisco, and it 

recently opened a de novo branch in the heart of the financial district in 

downtown Los Angeles. Sanwa Bank is a wholly owned affiliate of The Sanwa 

Bank, Ltd., Osaka, Japan. Charter Bank operates two branch offices, both of 

which, like its main office, are located in Los Angeles County. One of these 

branches is in the Palms section of Los Angeles, 1 mile from Charter Bank's 

main office, and the other is in Redondo Beach, 13 miles south of the main 

office.

The proposed merger would have its most direct and immediate impact in 

Los Angeles County, which constitutes the Los Angeles-Long Beach SMSA. 

The population of Los Angeles County stood at 7,036,881 in 1970, having

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

increased 16.5 percent between 1960 and 1970, and the metropolitan area has 

a widely diversified economy with notable concentrations in electronic, aerospace, petroleum, and entertainment industries and a rapidly growing volume 

of foreign trade. Area growth is continuing although at a slower pace than in 

the 1960s.

Charter Bank's Culver City offices serve a basically residential area, composed primarily of low- and middle-income families, but the eastern portion of 

Culver City is intensively industrialized. Charter Bank's Redondo Beach office 

serves a somewhat similar economic area. Ten miles of metropolis separate the 

nearest office of Charter Bank from Sanwa Bank's new branch in the financial 

district of downtown Los Angeles.

Neither bank has even 1/2 of 1 percent of the total commercial banking 

resources of the Los Angeles SMSA, and their four offices constitute an infinitesimal proportion of the more than 1,000 commercial bank offices that serve 

Los Angeles County. Given the wholesale and international orientation of 

Sanwa Bank, the retail orientation of Charter Bank, and the very small share of 

the local banking market each controls, it is apparent that their merger would 

eliminate no significant existing competition between them.

Under California law, commercial banks may branch de novo statewide; but 

in view of Charter Bank's limited financial and managerial resources, it is not 

likely to branch de novo into the downtown areas of San Francisco or Los 

Angeles. Sanwa Bank has the capacity to branch de novo, but there is little 

apparent incentive for it to do so in either Culver City or Redondo Beach. 

Present banking facilities in these areas are adequate, and neither area has a 

substantial concentration of Japanese-Americans or business firms with strong 

ties to Japanese interests. Moreover, California has numerous larger banks able, 

willing, and eager to establish de novo offices wherever the public convenience 

or need would be served. The Corporation concludes that the merger would 

not eliminate any significant amount of potential competition between the two 

banks.

Commercial banking in the State of California is highly concentrated, with 

the 10 largest organizations holding 87.9 percent of statewide deposits as of 

June 30, 1973. Bank of America, NT&SA, had 36.4 percent of these deposits 

and Security Pacific National Bank, the second largest bank in the State, had

13.6 percent. At that time, Sanwa Bank was the 47th largest of the 163 

commercial banks in California and Charter Bank was the 84th largest. The 

resulting bank would be the 40th largest, with about 1/10th of 1 percent of 

statewide deposits.

Essentially the same commercial bank structure appears in numerous local 

banking markets throughout the State, including the Los Angeles SMSA and 

the two neighborhood areas in which Charter Bank has its offices. Charter 

Bank's affiliation, therefore, with Sanwa Bank and its diversified resources 

should enhance competition locally with these much larger statewide commercial banking organizations.

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 competition, tend to create a monopoly, or in any manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Sanwa Bank has 

satisfactory financial and managerial resources, as would the resulting bank.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 127

Future prospects for the resulting bank are more favorable than for the undercapitalized Charter Bank.

Convenience and Needs o f the Community to be Served. Consummation of 

this proposed transaction would have no perceptible effect in the trade areas 

now being served by Sanwa Bank. Some additional benefits should flow to 

Charter Bank customers. The present lending limit of Charter Bank is 

$166,000, while the resulting bank would have a limit of $1,025,000. This 

substantially increased lending limit may offer some degree of additional convenience to commercial and industrial firms that are customers or potential 

customers of Charter Bank. The resulting bank plans to continue, with only 

minor changes, the services presently offered by Charter Bank and to add 

international banking services.

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

T o be

operated

Suburban Trust Company

Hyattsville, Maryland

765,906 50 51

to merge with

Colonial Bank and Trust Company

Annapolis

12,930 1

Summary report by Attorney General, August 27, 1973

The nearest offices of the parties are separated by approximately 15 miles, 

with several banking alternatives in the intervening area. Thus, it appears that 

the proposed merger will eliminate only a limited amount of existing competition.

Colonial is the smallest of nine banks with offices in Annapolis and among 

the smallest of the 19 banks operating in Anne Arundel County. Thus, while 

Suburban exists as a potential entrant into the area served by Colonial, the 

modest market position of the latter diminishes the effects of this transaction 

on potential competition.

Therefore, we conclude that the proposed merger will not have a substantial 

competitive impact.

Basis for Corporation approval, November 29, 1973

Suburban Trust Company, Hyattsville, Maryland ("Suburban"), a State nonmember insured bank with total resources of $765,906,000 and total IPC 

deposits of $604,763,000, 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 Colonial Bank and Trust 

Com pany, Annapolis, Maryland ("Colonial"), with total resources of 

$12,930,000 and total IPC deposits of $8,411,000, and for consent to establish

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

branches at the location where Colonial has its sole operating office and at the 

location of Colonial's one approved but unopened branch. The resulting bank 

would have a total of 60 approved offices.

Competition. Suburban is the fourth largest commercial bank in the State of 

Maryland, with 9.6 percent of the IPC deposits held by all of these banks. Most 

of its branches are concentrated in Prince Georges County and Montgomery 

County. These, with one branch in Charles County, serve the Maryland suburbs 

of the District of Columbia. It also has five branches in operation in the 

Baltimore area. In addition, Suburban has approvals for seven more branches in 

these areas and for one branch in Howard County. Suburban has no branch at 

the present time in Anne Arundel County.

Colonial's banking business is derived primarily from the city of Annapolis 

and its northwestern suburbs in Anne Arundel County within a distance of 

some 5 miles of the bank's office. Population of the city of Annapolis increased 26.5 percent during the 1960s to a total of 29,592. Annapolis, the 

State's capital is the home of the U.S. Naval Academy, an oystering and fishing 

port, and a yachting center. It is predominantly a residential community. Buying levels in 1972 were 4.8 percent above those of the State. Expansion of the 

Annapolis area is continuing into the 1970s at a rapid rate. Although the 

smallest of 13 banks in Anne Arundel County in terms of total deposits, 

Colonial has the ninth largest share of IPC deposits held by all 54 commercial 

bank offices iri the county, but its 3.0 percent share of these deposits lags 

significantly beihind the market shares held by six of these 13 banks. The 

largest share of local IPC deposits in Anne Arundel County (29.9 percent) is 

held by the State's largest bank, Maryland National Bank.

A t present the branch of Suburban closest to Colonial is its Bowie office, 

situated some 18 miles west of Annapolis. Although Suburban attracts some 

business from intervening Anne Arundel County, it is not in significant direct 

competition with Colonial and the two banks serve separate banking markets. 

Suburban's establishment of an additional branch in Bowie, which would then 

be its office closest to Colonial, is unlikely to change this conclusion, since the 

two offices would still be some 16.5 miles apart, with other commercial bank 

offices in the intervening area.

Maryland law permits commercial banks to branch and merge statewide. 

Colonial and Suburban could thus seek to branch de novo into each other's 

markets. Colonial has not yet developed a significant competitive stature in its 

market, however, and after its initial approved branch has been established in 

Annapolis, it is unlikely to consider additional de novo expansion during the 

foreseeable future. On the other hand, Suburban, one of Maryland's major 

commercial banks, has a growth-minded management and extensive experience 

in de novo expansion. In all likelihood it would find the rapidly expanding and 

relatively high income Annapolis area attractive for de novo entry. The population for each commercial bank office in the market, moreover, is 5,510, compared to 5,195 for the State as a whole.

Elimination by the proposed merger of this potential for increased competition between the two banks is, however, of no substantial competitive significance. The proposal, in view of Colonial's relatively minor size in its local 

market, is equivalent to a toehold acquisition by Suburban in a new local 

banking market where it is presently unrepresented. The number of convenient 

banking alternatives in the area would not be reduced and Suburban's entry

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should stimulate competition within Anne Arundel County, where each of the 

State's three larger banks already have offices.

Suburban, following the merger, would continue to be the fourth largest 

commercial bank in Maryland, with its share of commercial IPC deposits within 

the State increased to 9.8 percent. The three leading commercial banks in 

Maryland hold, respectively, 17.7 percent, 12.2 percent, and 10.1 percent of 

the State's commercial IPC deposits.

In light of this, the Board of Directors is of the opinion that the proposed 

transaction would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other manner be in restraint of 

trade.

Financial and Managerial Resources; Future Prospects. Each of the participating banks has adequate financial resources, as would the resulting bank. The 

resulting bank would have a satisfactory management. Satisfactory operating 

histories of each participant indicate that future prospects of the resulting bank 

would be favorable.

Convenience and Needs o f the Community to be Served. The proposed 

merger would have no perceptible effect in the trade areas presently served by 

Suburban. In Anne Arundel County, however, the merger is expected to have 

procompetitive effects. Moreover, customers of Colonial should be significantly 

benefited by Suburban's many specialized banking and trust services, higher 

lending limits, credit card services, and education loan offerings.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

I n

operation

T o be

operated

University Trust Company

Cambridge, Massachusetts 

(change title to University Bank 

and Trust Company)

13,821 1 7

to merge with

Garden City Trust Company

Newton

43,608 6

Summary report by Attorney General, August 22, 1973

The merging banks are both majority-owned subsidiaries of the same registered bank holding company. As such, their proposed merger is essentially a 

corporate reorganization, and would have no effect on competition.

Basis for Corporation approval, November 29, 1973

University Trust Company, Cambridge, Massachusetts ("University"), a 

State nonmember insured bank with total resources of $13,821,000 and total 

IPC deposits of $10,049,000, has applied, pursuant to Section 18(c) and other

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130 F EDERAL DEPOSIT INSURANCE CORPORATION

provisions of the Federal Deposit Insurance Act, for the Corporation's prior 

consent to merge with Garden City Trust Company, Newton, Massachusetts 

("Garden C ity"), with total resources of $43,608,000 and total IPC deposits of 

$31,033,000. The banks would merge under the charter of University and with 

the title "University Bank and Trust Company." Incident to the merger, the six 

offices of Garden City would become offices of the resulting bank, the present 

main office of Garden City becoming the main office of the resulting bank. 

The present office and an approved, unopened office of University would 

become branches of the resulting bank, which would thus be provided with a 

total of eight approved offices. Application has also been made on behalf of 

the resulting bank for consent to retire capital stock of a total par value of 

$377,550, with a corresponding increase in surplus, thereby reducing the outstanding capital stock of the resulting bank to 53,540 shares with a total par 

value of $535,400.

Competition. This proposed transaction has the sole purpose of enabling 

North Atlantic Bancorp (North Atlantic), a Newton-based registered bank 

holding company, to consolidate its operations in Middlesex County, 

Massachusetts. In June 1970, North Atlantic acquired 52.1 percent of the 

voting shares of Garden City, and on January 27, 1972, the Board of Governors of the Federal Reserve System, acting pursuant to the Bank Holding 

Company Act, approved North Atlantic's application to acquire 51 percent or 

more of the voting shares of University. The acquisition of 94.8 percent of 

University's voting shares by North Atlantic was consummated in June 1972. 

This proposed transaction would, therefore, not in itself change the structure 

of competition n Middlesex County nor should it affect the banking services 

that are provided.

The Board of Directors is of the opinion that the proposed transaction 

would not, in any section of the country, substantially lessen competition, 

tend to create a monopoly, or in any other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Both banks have 

satisfactory financial and managerial resources for the business they do as 

independent institutions, and the same would be true of the resulting bank.

Convenience and Needs of the Community to be Served. Due to the nature 

of the transaction, there will be no effect on the convenience and needs of the 

community.

On the basis of the foregoing information, the Board of Directors has concluded that approval of the applications is warranted.

Resources

(tn

thousands

of dollars)

Banking Offices

I n

operation

T o be

operated

Grenada Bank

Grenada, Mississippi

137,197 16 17

to merge wi th

Houston State Bank

Houston

10,634 1

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Summary report by Attorney General, October 24, 1973

The nearest offices of the parties are located approximately 20 miles apart; 

accordingly, it does not appear that the proposed transaction would eliminate 

substantial existing competition.

Bank, with 36.9% of total Chickasaw County deposits, ranks first among the 

four banks with offices in that County. Applicant's nearest office, located in 

adjacent Calhoun County, ranks first among the three banking organizations 

operating in Calhoun County with 47.3% of Calhoun County deposits. Applicant could legally establish de novo offices in Bank's Chickasaw County service 

area. However, the effects of this transaction on potential competition are 

diminished somewhat by the nature of the area served by Bank, its small 

absolute size and the existence of other potential entrants.

Basis for Corporation approval, November 29, 1973

Grenada Bank, Grenada, Mississippi, an insured State nonmember bank with 

total assets of $137,197,000 and IPC deposits of $103,853,000, 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 Houston State Bank, Houston, Mississippi, with total assets of 

$10,634,000 and IPC deposits of $7,945,000. The two approved offices of 

Houston State Bank would become branches of Grenada Bank as an incident to 

the merger, increasing to 20 the total number of its authorized offices.

Competition. Grenada Bank operates offices in nine counties (Grenada, 

Bolivar, Winston, Tallahatchie, Calhoun, Choctaw, Leflore, Sunflower, and 

Webster) in the central and eastern portions of northern Mississippi. The economy of this region is predominantly agricultural, but light industry is assuming 

greater importance. The 1970 population of these nine counties was 219,275, a 

10.1 percent decrease since 1960. With the exception of Grenada County, 

median income levels throughout the region are substantially below the State 

average, which itself is the second lowest in the nation. Grenada Bank has no 

office in Chickasaw County at the present time.

Houston State Bank has its main office and an approved but unopened 

office in Houston (population 2,720), in Chickasaw County (1970 population 

16,805). Chickasaw County is in northeastern Mississippi, immediately to the 

east of Calhoun County. Its economy, like that of Grenada Bank's present 

service area, is predominantly agricultural, although light manufacturing is beginning to provide more jobs and income.

The effects of the proposed merger would be confined almost entirely to 

Chickasaw County, of which Houston is one of two county seats. There are 

four commercial banks operating five offices in that county that hold aggregate 

IPC deposits of only $22.5 million. Houston State Bank has 35.3 percent of 

these IPC deposits, while the two branches of the Tupelo-based Bank of Mississippi, acquired recently by merger, hold 35.5 percent of these deposits, with 

the remainder being shared by the other two banks.

Grenada Bank and Houston State Bank presently operate in different banking markets. The closest office of Grenada Bank to Houston State Bank's main

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132 FEDERAL DEPOSIT INSURANCE CORPORATION

office is at Calhoun City, some 20 miles west of Houston. Grenada Bank also 

has approval for a branch in Derma, which is about 1 mile closer. There is a 

branch of the $108.3-million deposit Bank of Mississippi at Vardaman, however, which is about midway between Derma and Houston. If there is any 

competitive overlap between Grenada Bank and Houston State Bank, it is not 

substantial, and the proposed merger would not eliminate any significant existing competition between the two banks.

There is little probability that the two banks would find themselves in 

greater competition with one another in the foreseeable future. Mississippi law 

permits de novo branching within 100 miles of the main office, subject to both 

numerical and geographic restrictions which in this instance would prohibit 

Grenada Bank from branching directly into Houston. De novo branching elsewhere in Chickasaw County does not appear economically attractive. Houston 

State Bank, for its part, lacks the financial resources and managerial depth to 

make any serious attempt to branch de novo into areas served by Grenada 

Bank. The proposed merger would therefore eliminate no significant potential 

for increased competition in the future between Grenada Bank and Houston 

State Bank through de novo branching.

In its maximum potential market, which under State law is that portion of 

Mississippi within a 100-mile radius of Grenada, Grenada bank controlled only

5.0 percent of the total IPC deposits held on June 30, 1972, by all offices of 

the 114 commercial banks represented within that area. The proposed merger 

would increase this share to 5.4 percent. In the State as a whole, Grenada Bank 

holds only 2.8 percent of all Mississippi commercial bank IPC deposits, and the 

proposed merger would raise this figure to 3.0 percent. In both areas, the 

State's two largest banks hold approximately three to four times the deposits of 

their smaller competitors, including Grenada Bank. In view of these figures, it 

appears that the proposed merger would have no significant effect on the 

structure of commercial banking in any relevant market.

Based on the foregoing, the Board of Directors is of the opinion that the 

proposed merger would not, in any section of the country, substantially lessen 

competition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Grenada Bank has 

adequate financial and managerial resources, while those of Houston State 

Bank are acceptable. The resulting bank would have adequate financial and 

managerial resources and favorable future prospects.

Convenience and Needs o f the Community to be Served. The proposed 

merger would bring to Houston State Bank's customers a more active lending 

philosophy, a much higher lending limit, and a greater variety of services, 

including regular passbook savings accounts, trust services, and computer services. It should also stimulate competition with Bank of Mississippi's branches 

in Chickasaw County and could have a salutary effect on the quality of banking services offered to the general public throughout the county.

Based on the foregoing, the Board of Directors has concluded thdt approval 

of the application is warranted.

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Resources

(in

thousands

of dollars)

Banking Offices

In

operation

To be

operated

The Barnitz Bank

Middletown, Ohio

to acquire the assets and assume

the liabilities of

54,655 4 5

The First Citizens Bank

Oxford

10,018 1

Summary report by Attorney General, August 14, 1973

The nearest offices of the parties are approximately 20 miles apart, with 

some competitive alternatives in the intervening area. Thus, it appears that the 

proposed acquisition would eliminate only a limited amount of existing competition, and would not substantially increase banking concentration in any 

relevant market.

Although Barnitz Bank could legally establish de novo offices in the area 

served by First Citizens Bank, the relatively modest market position of the 

latter bank coupled with the existence of other potential entrants diminish the 

effect of the consolidation on potential competition.

Therefore, we conclude that the proposed acquisition would not have a 

substantial competitive impact.

Basis for Corporation approval, November 29, 1973

The Barnitz Bank, Middletown, Ohio (total resources $54,655,000; total 

IPC deposits $44,061,000), a State nonmember insured bank, has applied, 

pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to purchase the assets of, and 

assume liability to pay deposits made in, The First Citizens Bank, Oxford, Ohio 

("First Citizens")(total resources $10,018,000; IPC deposits $7,854,000). As 

an incident to the transaction, the Barnitz Bank would establish the sole office 

of First Citizens as a branch, thereby increasing to five the number of its 

offices.

Competition. The Barnitz Bank operates four offices in eastern Butler County, all within the city of Middletown, in southwestern Ohio. Its primary trade 

area comprises the city and its Butler County suburbs within a distance of 

some 7 road miles. Middletown's economy is supported in major part by heavy 

industry. Population of the city increased 15.8 percent during the 1960s, to a 

total of 48,767, in contrast to a statewide population increase of 9.7 percent 

during the same period. The 1972 income levels of the county were 2.7 percent 

below those of the State. The Barnitz Bank is a subsidiary of First Banc Group 

of Ohio, Inc., a multibank holding company that controlled 13 banks having 

deposits slightly in excess of $1 billion at year-end 1972. These affiliations 

made it the seventh largest banking organization in Ohio, with 3.9 percent of 

the State's total commercial bank deposits.

First Citizens operates its sole office in the village of Oxford (1970 

population 15,868) in northwestern Butler County. The economy of this essentially rural area is centered about Miami University, whose student enrollment

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

is approaching 15,000. The primary banking market of First Citizens comprises 

the village of Oxford and its environs within a distance of some 5 miles and it is 

within this local banking market that effects of the proposed transaction would 

be most immediate and direct. In this market, First Citizens holds 47.4 percent 

of area savings and other time IPC deposits; its only local competitor, The First 

National Bank and Trust Company of Hamilton, with one office in operation 

and another approved, holds the remaining 52.6 percent.*

Offices of The Barnitz Bank are located some 21 road miles east of First 

Citizens' Oxford location. There is no discernible overlapping of trade areas in 

the sparsely populated northcentral portion of the county lying between the 

two banks, and inhabitants of the Oxford area seeking alternative sources of 

banking services would be more likely to travel to the city of Hamilton (population 67,865), some 12 miles to the southeast, rather than to Middletown. It 

appears, accordingly, that the proposed transaction would not eliminate significant existing competition between The Barnitz Bank and First Citizens. Moreover, the nearest affiliate of First Banc Group of Ohio is located in Milford, 

some 36 miles southeast of Barnitz, and is not competitive with The Barnitz 

Bank.

Although each of the subject banks may legally branch into the trade area 

of the other, neither The Barnitz Bank nor First Citizens is likely to do so. 

First Citizens, operating as a unit bank ever since 1906, has neither the financial nor managerial resources to engage in de novo expansion. The Barnitz 

Bank, for its part, would not find the Oxford area attractive for de novo entry. 

There appear to be slight prospects for continued rapid expansion in this 

essentially rural area and, following establishment of the four additional banking offices projected for the village, the Oxford banking market should be 

adequately banked for the foreseeable future.

Within Butler County, the maximum legal branching area of The Barnitz 

Bank, seven commercial banks operate a total of 32 offices and control county 

IPC deposits aggregating $288.3 million. The Barnitz Bank, with 15.3 percent 

of these deposits, has the third largest share. The resulting bank would continue to rank third within the county, its IPC deposit share increased to 18.0 

percent.

In terms of total deposits held by all commercial banks in Ohio, The Barnitz 

Bank, with 0.18 percent of the deposits, ranks 87th largest. The resulting bank 

would become 75th largest, with 0.21 percent of all Ohio commercial bank 

deposits. This slight increase in the total deposit holdings of First Bank Group 

of Ohio would have no perceptible effect on the future structure of commercial banking in the State of Ohio.

Under these circumstances, the Board of Directors is of the opinion that the 

proposed purchase and assumption transaction would not, in any section of the 

country, substantially lessen competition, tend to create a monopoly, or in any 

other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. The resulting bank, 

like The Barnitz Bank today, would have adequate financial and managerial 

resources. In these respects, the proposed transaction would resolve significant

*Two other banks have the necessary supervisory approvals to establish three additional 

branches within Oxford.

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problems faced by First Citizens. The future prospects of the resulting bank are 

considered favorable.

Convenience and Needs o f the Community to be Served. Customers of the 

Oxford area would find facilities and services at the First Citizens location 

significantly improved under stronger and more aggressive management. A 

walk-up teller window and automated teller facilities are to be provided. Rates 

charged on several types of loans would be reduced, while the rates now being 

paid on certificates of deposit would be increased. Trust facilities and student 

loans would be introduced and a broadened savings program made available.

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

T o be

operated

First Valley Bank

Lansford, Pennsylvania

425,381 24 25

to merge w ith

The Liberty National Bank of Pittston

Pittston

25,601 1

Summary report by Attorney General, August 23, 1973

Liberty National is the smallest of the three commercial banks in Pittston. 

Valley Bank's nearest office is situated in Kingston, about eight miles southwest of Pittston. Despite the relatively close proximity of these offices, it is 

unlikely that the proposed merger will eliminate substantial existing competition; there are several banking alternatives in the intervening area, and the 

communities of Pittston and Kingston are separated by the Susquehanna River.

Valley Bank could legally establish de novo offices in the area served by 

Liberty National. However, in view of Liberty National's market position and 

the nature of the community it serves, we conclude that the proposed merger 

will not eliminate substantial potential competition.

Basis for Corporation approval, November 29, 1973

First Valley Bank, Lansford, Pennsylvania, a State nonmember insured bank 

with total resources of $425,381,000 and total IPC deposits of $340,609,000, 

has applied, pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the Corporation's prior consent to merge with The 

Liberty National Bank of Pittston, Pittston, Pennsylvania ("Liberty National"), 

with total resources of $25,601,000 and total IPC deposits of $21,911,000. 

The banks would merge under the charter and title of First Valley Bank, and 

the sole office of Liberty National would become a branch of the resulting 

bank, increasing to 25 the number of its offices.

Competition. First Valley Bank has a total of 24 offices: 15 in Northampton County, four in Luzerne County, three in Lehigh County, and two in

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136 FEDERAL DEPOSIT INSURANCE CORPORATION

Carbon County. It serves five separate trade areas in this central-eastern Pennsylvania region: the Allentown-Bethlehem area, the Lansford-Nesquehoning 

area, the Kingston area, the Bangor area, and the Hazleton-Freeland area. These 

areas have the support of diversified industry and agriculture, with the steel 

industry being of major importance in the Allentown-Bethlehem area where 

First Valley Bank has most of its offices.

Liberty National has its sole office in downtown Pittston (population

11,113). Pittston is one of a number of communities located between WilkesBarre (population 58,856), about 8 miles to the southwest in Luzerne County, 

and Scranton (population 103,564), about 12 miles to the north in Lackawanna County. The economy of this area, historically centered in the production of anthracite, has been stagnant for a number of years. The 1972 median 

buying level of Wilkes-Barre households ($7,305) was 17 percent below the 

Pennsylvania median and typifies the entire area.

First Valley Bank's office in Kingston, its closest to Pittston, is 8 road miles 

southwest of, and across the Susquehanna River from, Liberty National's office. A total of five commercial banks operate offices in the intervening area.

The competi tive effects of the proposed merger would be most pronounced 

in the Luzerne County-Lackawanna County portion of the Northeast Pennsylvania SMSA. This market is served by 105 offices of 37 commercial banks. 

First Valley Bank, which holds the sixth largest share of local IPC deposits in 

the two-county area, controls 4.7 percent of these deposits, while Liberty 

National controls 1.1 percent of these deposits. The combined bank would 

hold a significantly smaller portion of the local IPC deposits than the three 

market leaders with 15.8 percent, 14.3 percent, and 10.0 percent, respectively. 

While First Valley Bank and Liberty National both compete in this market, 

they have few depositors in common, and neither bank draws a significant 

volume of deposit or loan business from the primary service area of the other. 

The Corporation concludes that no significant existing competition between 

First Valley Bank and Liberty National would be eliminated by their proposed 

merger.

First Valley Bank is headquartered in Carbon County and may, under Pennsylvania law, merge or branch de novo in that county, in Luzerne County, and 

in four other counties contiguous to Carbon County. It may not branch de

novo or merge in Lackawanna County. First Valley Bank has already entered 

the Wilkes-Barre-Scranton banking market by merger and, as one of the market's larger banks in terms of total deposits, has the capacity, resources, and 

motivation for further expansion in the market. De novo branching, however, 

is unlikely to be attractive because of the area's stagnant economy, its belowaverage income levels and its large number of offices and banks. For its part, 

Liberty National, a unit bank with an aging management, has neither the 

resources nor the experience for de novo expansion in the foreseeable future. It 

thus appears that no significant potential for increased competition between 

the two banks in the future would be eliminated by their proposed merger.

The Counties of Carbon, Northampton, Lehigh, Monroe, Schuylkill, and 

Luzerne comprise the largest geographic area within which First Valley Bank 

may expand under existing Pennsylvania laws. Within this region, a total of 69 

commercial banks, operating 267 offices, hold area IPC deposits aggregating 

approximately $3.4 billion. The First National Bank of Allentown, with 10.3 

percent of these IPC deposits, held the largest share, while First Valley Bank,

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 137

with 10.0 percent, held the second largest share. Consummation of the proposed merger would increase First Valley Bank's share of these deposits to 10.7 

percent and move it into the first-ranking position. However, in view of the 

large number of banks with more than $100 million in IPC deposits that 

compete in this six-county area, it appears unlikely that the proposed merger 

would have any significant anticompetitive effect on the commercial bank 

structure in this relatively unconcentrated region of central-eastern Pennsylvania.

For the reasons stated, the Board of Directors is of the opinion that the 

proposed transaction would not, in any section of the country, substantially 

lessen competition, tend to create a monopoly, or in any manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Financial and managerial resources of the resulting bank would be adequate. Its future prospects 

would also be favorable.

Convenience and Needs o f the Community to be Served. A full range of 

commercial bank services, including a broader range of loans, a lending lim it 

increased to $2 million, computer services, and specialized lending services 

would become available at Liberty National's present location. Trust facilities 

would also be actively offered for the first time to Liberty National's customers. To the extent similar services are available at offices of other large 

banks in Lackawanna and Luzerne Counties, the public should benefit from 

having conveniently available another alternative for such services, particularly 

one with First Valley Bank's reputation as an aggressive and innovative competitor.

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

T o be

operated

The First National Bank of Montoursville

Montoursville, Pennsylvania 

(change title to Bank of Central 

Pennsylvania)

31,340 1 2

to consolidate with

Bank of South Williamsport

South Williamsport

15,954 1

Summary report by Attorney General, August 14, 1973

Although the Susquehanna River tends to restrict travel between South 

Williamsport and Montoursville, the relatively slight distances between the two 

banks indicate that there is some competition between them which would be 

eliminated by the proposed acquisition.

There are 11 banks in Lycoming County. FNB, with 8.1% of total County 

deposits, ranked fifth among these 11 banks as of June 30, 1972, while BSW, 

with 4.6% of County deposits, ranked eighth. The resulting bank would be the

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138 FEDERAL DEPOSIT INSURANCE CORPORATION

fourth largest bank in Lycoming County and would hold 12.7% of total County deposits. This increase in concentration, however, overstates the competitive 

effect of the merger because the two banks do not compete with each other 

throughout their service areas.

Both banks could be permitted to branch into the community in which the 

other operates, but the small size of the communities coupled with the existence of several larger potential entrants into each community diminishes the 

effect of the transaction on potential competition.

Basis for Corporation approval, November 29, 1973

The First National Bank of Montoursville, Montoursville, Pennsylvania 

( " F ir s t N a tio n a l") (total resources $31,340,000; total IPC deposits 

$26,294,000), has applied, pursuant to Section 18(c) and other provisions of 

the Federal Deposit Insurance Act, for the Corporation's prior consent to 

consolidate with Bank of South Williamsport, South Williamsport, Pennsylvania ("South Bank"), a State nonmember insured bank with total resources 

of $15,954,000 and total IPC deposits of $13,932,000. The banks would consolidate under a new State charter and the resulting bank would have the title 

"Bank of Central Pennsylvania." First National's sole office would be the main 

office of the resulting bank, and South Bank's only office would be operated as 

a branch.

Competition. First National operates its sole office in Montoursville (population 5,985) and South Bank operates its only office in South Williamsport 

(population 7,153), both of which are municipalities in Lycoming County in 

north-central Pennsylvania. Montoursville and South Williamsport are both 

suburbs of Williamsport (population 37,918), which is the largest population 

center in the area and is about 90 miles north of Harrisburg, the State capital. 

The economy of the Williamsport area has shown a trend from agriculture to 

industrial development that is expected to continue. Median household income 

levels in 1972 for Lycoming County ($7,840) and the city of Williamsport 

($6,955) were substantially below the State figure ($8,785).

The competitive impact of the proposed consolidation would be most 

immediate and direct in the southern portion of Lycoming County. Within this 

area, nine commercial banks operate 20 offices holding aggregate deposits of 

$328 million. First National has 8.6 percent of these deposits, while South 

Bank has 4.4 percent. The resulting bank would rank third in terms of local 

deposits, significantly behind the 27.9 percent share of the $115 million Northern Central Bank and Trust Company and the 22.4 percent share of the $74 

million Williamsport National Bank.

First National and South Bank are about 6 miles apart, but their locations 

are separated by the Susquehanna River and the city of Williamsport. Access is 

restricted by the fact that the route between the two banks runs through 

downtown Williamsport where the main office of three much larger competitors are located. Further, the natural flow of traffic is not between Montoursville and South Williamsport, but from those points into Williamsport and 

back again. Partly as a result, neither bank appears to draw any significant 

business from areas served by the other. While both banks operate in the same 

market and their proposed merger would probably eliminate some direct competition between them, the degree of overlap appears not to be significant.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 139

Inasmuch as First National and South Bank are both headquartered in 

Lycoming County, each can legally branch de novo within that county and the 

nine contiguous counties. The likelihood of this happening, however, appears 

remote. Neither bank has had de novo branching experience, and neither alone 

presently has the resources or management to engage in meaningful de novo

expansion. Were they to merge, at least five larger banks could also branch de

novo in Lycoming County and its nine contiguous counties, while the consolidated bank would be in a better position to compete with these banks for 

the more desirable and available branch sites. It appears unlikely, therefore, 

that the proposed consolidation would have any significant adverse effect on 

future commercial bank competition in this portion of the State. The resulting 

bank, in fact, would have only 3.3 percent of the total IPC deposits in this 

10-county area.

Under these circumstances, the Board of Directors is of the opinion that the 

proposed transaction would not, in any section of the country, substantially 

lessen competition, tend to create a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. Both First National 

and South Bank have adequate financial and managerial resources for the banking business they presently do, and both have satisfactory prospects for the 

future. The resulting bank would also have adequate financial and managerial 

resources and future prospects.

Convenience and Needs o f the Community to be Served. The proposed 

consolidation would benefit individuals and businesses in the Williamsport area 

by creating a fifth meaningful alternative for the full range of commercial 

banking services now available only from the four larger banks with offices in 

this part of Lycoming County. South Bank customers in particular would 

benefit from more liberal lending policies, a substantially higher lending limit, 

and the availability of bank credit card and trust services.

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

T o be

operated

Commonwealth Bank and Trust Company

Muncy, Pennsylvania

97,248 12 13

to merge with

The First National Bank of Shinglehouse

Shinglehouse

4,503 1

Summary report by Attorney General, September 17, 1973

The nearest offices of the parties are approximately 35 miles apart with two 

competitive alternatives in the intervening area. It thus appears that the proposed transaction would eliminate no substantial existing competition. A lthough Applicant could legally establish a de novo office in the area served by

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140 FEDERAL DEPOSIT INSURANCE CORPORATION

Bank, the latter's modest size and the existence of other potential entrants 

diminish the ef fects of this acquisition on potential competition.

Therefore, we conclude that the proposed acquisition would not have a 

substantial competitive impact.

Basis for Corporation approval, November 29, 1973

Commonwealth Bank and Trust Company, Muncy, Pennsylvania ("Commonwealth"), a State nonmember insured bank with total resources of 

$97,248,000 and total IPC deposits of $78,680,000, has applied, pursuant to 

Section 18(c) and other provisions of the Federal Deposit Insurance Act, for 

the Corporation's prior written consent to merge with The First National Bank 

of Shinglehouse, Shinglehouse, Pennsylvania ("Shinglehouse Bank"), with total 

resources of $4,503,000 and total IPC deposits of $3,393,000. The banks 

would merge under the charter and title of Commonwealth. Permission is also 

requested to establish the one office of Shinglehouse Bank as a branch of the 

resulting bank, thereby increasing the number of its offices to 13.

Competition. Commonwealth operates 12 offices in four counties in northcentral Pennsylvania; four in Lycoming, two in Bradford, one in Potter, and 

five in Tioga. It serves three distinct areas: (1) Tioga County and the eastern 

portion of Potter County, (2) north-central Bradford County and the adjacent 

New York State area, and (3) southern Lycoming County and portions of 

Clinton, Northumberland, Montour, and Sullivan Counties. The economy of 

these areas is diverse, with agriculture, dairy farming, timber, tourism, and 

manufacturing contributing significantly. From 1960 to 1970, the combined 

population growth in those counties where Commonwealth operates offices 

was somewhat above the statewide growth, but the 1972 median household 

income for those counties was somewhat below the statewide figure.

Shinglehouse Bank operates its sole office in Shinglehouse, which is located 

in the northwestern section of Potter County approximately 3 miles south of 

the New York State border and about 1 mile east of the border between 

McKean and Potter Counties. Shinglehouse is a small rural town with a 1970 

population of 1,320. It is a secondary commercial center for farm areas in the 

Oswayo and Honeoye Valleys and the site of several small timber and agricultural businesses. The local economy is based predominately on agriculture.

The proposed merger would have its most direct and immediate impact in 

the area described by an approximate 15-mile radius around Shinglehouse. This 

area includes the northwest portion of Potter County, the northeast portion of 

McKean County, and adjacent areas in New York State. It had a 1970 population of approximately 49,600 (down 3.4 percent from the estimated 1960 

figure). The city of Olean, New York, which is located at the extreme northwestern lim it of this local banking market, accounts for about 39 percent of 

the total area population, and a substantial number of Shinglehouse's residents 

commute there for employment. Coudersport (1970 population 2,831), 

about 18 road miles to the southeast, is the seat of Potter County and marks 

the southern extremity of the local market area. Median household incomes for 

1972 in Potter and McKean Counties and adjacent counties in New York were 

substantially below the respective State figures. Shinglehouse Bank competes 

with 12 offices of eight commercial banks: four offices located in Pennsylvania 

and eight offices located in New York. Its closest competitors are two Bolivar 

branches of Mew York banks approximately 10 road miles distant. It holds 2.7

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 141

percent of total area IPC deposits of $128,001,000 and is the smallest of the 

nine commercial banks represented.

Commonwealth's closest office to Shinglehouse Bank is in Galeton, Potter 

County, some 43 road miles distant. The two banks operate in separate and 

distinct trade areas and there is no significant amount of existing competition 

between them that would be eliminated by their proposed merger.

Under Pennsylvania law, Shinglehouse Bank could branch de novo into 

Commonwealth's trade area in Potter County and into Tioga and Lycoming 

Counties, which are also served by Commonwealth. However, throughout its 

70-year history, Shinglehouse Bank has shown no inclination to expand de

novo. Furthermore, its present financial and managerial resources are not sufficient to provide for a meaningful de novo penetration of areas served by 

Commonwealth. Although Commonwealth has the capacity to branch de novo

into the Shinglehouse area, its somewhat static economy and declining population make this relatively unattractive for Commonwealth. In addition, the 

population per banking office in the Shinglehouse market is only 3,818, compared to a statewide figure of 4,870. Of the 10 counties open to de novo

branching activities by Commonwealth, seven appear to offer better opportunities than Potter County for de novo branching, because of higher populations per banking office and/or higher income levels. The Corporation concludes that the proposed merger would be unlikely to eliminate any significant 

potential for increased competition in the future between Commonwealth and 

Shinglehouse Bank as the result of de novo branching.

In terms of local IPC deposits, Commonwealth is the third largest of 61 

commercial banks that operate in the 10-county area where Commonwealth 

can legally establish offices, holding 6.5 percent of these deposits. After consummation of the proposed merger with Shinglehouse Bank, Commonwealth 

would hold only 6.8 percent of such IPC deposits and would remain the third 

largest bank in the 10-county area. In view of the relatively large number of 

banks in this area and the small size of Shinglehouse Bank, the proposed 

transaction would appear unlikely to have any perceptible effect on the existing banking structure in this 10-county area.

Based on the foregoing, the Board of Directors has concluded that the 

proposed merger would not, in any section of the country, substantially lessen 

competition, 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 participating banks are adequate and would be for 

the resulting bank. Future prospects are favorable for both institutions as 

independent banks, and the same would be true for the resulting bank.

Convenience and Needs o f the Community to be Served. The commercial 

banks closest to Shinglehouse are located approximately 10 miles away and 

residents seeking trust services or credit lines in excess of the Shinglehouse 

Bank's present lim it of $46,000 are required to travel some distance in order to 

meet their credit needs. The Shinglehouse branch of the resulting bank would 

offer these services with a lending limit of approximately $600,000 and in 

addition would offer more time deposit options and computerized accounting 

services.

Based on the foregoing, the Board of Directors has concluded that approval 

of this application is warranted.

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142 FEDERAL DEPOSIT INSURANCE CORPORATION

Resources

(in

thousands

o f dollars)

Banking Offices

In

operation

T o be

operated

American Bank and Trust Co. of Pa.

Reading, Pennsylvania

874,459 41 44

to merge with

Tri-Valley National Bank

Hegins

13,290 3

Summary report by Attorney General, September 17, 1973

The nearest offices of the parties are located in Schuylkill County and are 

separated by a distance of about 10 miles. Thus, it appears that the proposed 

transaction may eliminate some existing competition. However, it does not 

appear that the proposed transaction would substantially increase banking concentration in any relevant market.

Although American Bank could legally establish a de novo office in the 

communities served by Tri-Valley Bank, the size and nature of these communities are such that it does not appear that the proposed transaction would 

eliminate substantial potential competition.

Therefore, we conclude that the proposed acquisition would not have a 

substantial competitive impact.

Basis for Corporation approval, November 29, 1973

American Bank and Trust Co. of Pa., Reading, Pennsylvania ("American"), 

a State nonmember insured bank with total resources of $874,459,000 and 

total IPC deposits of $667,174,000, has applied, pursuant to Section 18(c) and 

other provisiors of the Federal Deposit Insurance Act, for the Corporation's 

prior consent 1:o merge with Tri-Valley National Bank, Hegins, Pennsylvania 

("Tri-Valley"), with total resources of $13,290,000 and total IPC deposits of 

$11,447,000, under the charter and title of American. As an incident to the 

merger, the three offices of Tri-Valley would become branches of the resulting 

bank, increasing the number of its authorized offices to 49.

Competition. American operates 41 offices in the seven counties where it 

may legally branch or merge under Pennsylvania law, that is, Berks, Chester, 

Lancaster, Lebanon, Lehigh, Montgomery, and Schuylkill Counties. American 

has seven offices in Schuylkill County, all of which are located in the eastern or 

central portions of that county. American also has approval to establish five de

novo branches as follows: two in Berks County, two in Lancaster County, and 

one in Chester County. American is an aggressive, full-service bank with a large 

trust department.

Tri-Valley operates its main office in Hegins and one branch each in Valley 

View, and Pitman, all within 8 road miles of each other in the western portion 

of Schuylkill County. Hegins and Valley View are in Hegins Township (1970 

population 3,253) and Pitman is in Eldred Township (1970 population 677). 

The economic mainstay of this portion of Schuylkill County has always been 

agriculture, and it has never been associated in any meaningful way with the 

anthracite mining that previously dominated the economy of most of the 

remainder of the county. Median income per household in Schuylkill County

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 143

was $6,796 in 1972, compared to $8,785 for the State as a whole. The most 

direct and immediate impact of the proposed merger would be felt in western 

Schuylkill County, the southern portion of Northumberland County, and a 

relatively small portion of Dauphin County. This local banking market is largely determined by the mountainous terrain that limits travel to the east, north, 

and west. Within this sparsely populated area of some 29,000 persons, there are 

11 offices of eight different commercial banks, with Tri-Valley holding the 

largest share (23.1 percent) of their local IPC deposits.

The nearest office of American to any office of Tri-Valley is in Pottsville, 

some 18 miles east of Hegins. American is not represented in the western 

Schuylkill banking market described, and there are offices of other commercial 

banks intervening. A t present, the two banks serve essentially separate areas 

and neither derives any significant business from communities served by the 

other. The proposed merger, therefore, would not eliminate any significant 

existing competition between American and Tri-Valley.

Although Tri-Valley is unlikely, because of its limited resources and lack of 

management depth, to branch de novo into areas served by American, the 

latter has demonstrated its capacity to branch de novo throughout its sevencounty branching and merging area. American, however, might find the sparsely populated banking market in which Tri-Valley presently competes relatively 

unattractive for de novo entry. There are presently fewer than 2,500 persons 

for each commercial bank office in the region, with no population growth in 

sight and income levels 22.6 percent below the State average. Moreover, if 

future de novo branching should become desirable, there are 10 other commercial banks, each with total resources in excess of $100 million, that either 

have offices in Schuylkill County or that may legally branch there. Further, 

under Pennsylvania law, American cannot branch into the portion of TriValley's local market that lies within Dauphin and Northumberland Counties. 

The Corporation concludes that any elimination of potential competition between the two banks that might result from their proposed merger would be 

competitively insignificant.

Within the seven-county area where American may branch or merge under 

Pennsylvania law, there were, as of June 30, 1973, 485 offices of 82 commercial banks with total IPC deposits in excess of $5 billion. American held 

over 8 percent of the commercial bank offices and 12.8 percent of the total 

IPC deposits. In Montgomery County, however, where American has 11 offices, it is faced with competition from six larger banks, including five previously headquartered in Philadelphia. By moving their main offices to Montgomery County, these banks now have become eligible to branch into Berks, 

Lehigh, and Chester Counties, in addition to the counties previously opened to 

them. Banks headquartered in Harrisburg may similarly enter Lebanon, Lancaster, and Schuylkill Counties, banks headquartered in Allentown may branch 

into Lehigh, Schuylkill, Berks, and Montgomery Counties, and banks headquartered in Wilkes-Barre may branch into Schuylkill County. In each case, 

eligible banks include a number of banks with more than $100 million in 

deposits. Thus, American is faced with significant actual or potential competition throughout its seven-county branching and merging area.

Under these circumstances, the acquisition of a $13 million bank, located in 

a relatively isolated corner of American's seven-county branching and merging

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

area, is not likely to result in such a concentration of assets within this broader 

area as to foreclose effective commercial bank competition in the future.

In accordance with Corporation policy, American has already been required 

as a condition to approval of its merger with Slatington National Bank and 

Trust Company in 1971, to divest itself, within a reasonable period of time, of 

stock it holds in other Pennsylvania banks that can branch or merge under 

Pennsylvania law into one or more of the seven counties in which American 

may branch or merge.

For the reasons stated, the Board of Directors is of the opinion that the 

proposed mergeir would not, in any section of the country, substantially lessen 

competition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Both banks have 

satisfactory financial and managerial resources for the business they do as 

independent institutions, and the same would be true of the resulting bank.

Convenience and Needs o f the Community to be Served. Consummation of 

the proposed merger would bring to customers of Tri-Valley the broad range of 

services of a large commercial bank, such as significantly larger lending limits, 

bank credit card services, computer services, trust services, and higher interest 

rates on time and savings deposits. These services are not generally available at 

banks within the relevant local market and, to the extent one or more may be 

offered by some other bank, the public should benefit from the increased 

competition for their business.

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

T o be

operated

Tidewater Bank and Trust Company 984 1 1

Williamsburg, Virginia

to acquire a portion of the assets and

assume a portion of the liabilities of

The Fidelity National Bank 158*

Lynchburg

Summary report by Attorney General, September 17, 1973

Both parties to the proposed transaction are subsidiaries of the same bank 

holding company. The proposed assumption of liabilities would have no adverse competitive effects.

Basis for Corporation approval, November 29, 1973

Tidewater Bank and Trust Company, Williamsburg, Virginia ("Tidewater"), 

a State nonmember insured bank with total resources of $984,000 as of

* Am ount of certificates of deposit to be transferred to Tidewater Bank and Trust Company.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 145

September 25, 1973, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to assume the liability to pay certain deposits aggregating $158,390.12 

made in The Fidelity National Bank, Lynchburg, Virginia ("Fidelity"), total 

resources $386,186,000 as of June 30, 1973. The transaction would be effected under the charter and title of Tidewater.

Tidewater is a newly organized bank that opened for business on September 

12, 1973, and both it and Fidelity are wholly owned subsidiaries of Fidelity 

American Bankshares, Inc., Lynchburg, Virginia, a multibank holding company. Certain certificates of deposit were placed with Fidelity on an interim 

basis, and the sole purpose of this transaction is to effect the transfer of those 

deposits from Fidelity to the new local Williamsburg bank. Due to the nature 

of the transaction and the relationship between Tidewater and Fidelity, the 

transaction would have no effect on competition. All other factors required to 

be considered are favorably resolved.

On the basis of the foregoing information, the Board of Directors has concluded that approval of the application is warranted.

Resources

(in

thousands

o f dollars)

Banking Offices

In

operation

T o be

operated

Proctor Trust Company

Proctor, Vermont

46,459 4 6

to merge with

National White River Bank in Bethel

Bethel

8,111 2

Summary report by Attorney General, September 13, 1973

The nearest offices of the parties are situated approximately 32 miles apart, 

with several competitive alternatives in the intervening area. It thus appears 

that the proposed acquisition would eliminate no substantial existing competition. And while Proctor could legally establish de novo offices in the area 

served by Bank, the latter's modest size coupled with the existence of other 

significant potential entrants into that area diminish the effect of the proposed 

transaction on potential competition.

Therefore, we conclude that the proposed transaction would not have a 

substantial competitive impact.

Basis for Corporation approval, December 10, 1973

Proctor Trust Company, Proctor, Vermont ("Proctor Trust"), a State nonmember insured bank with total resources of $46,459,000 and total IPC deposits of $37,720,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to merge with the National White River Bank in Bethel, Bethel, Vermont 

("Bethel Bank"), with total resources of $8,111,000 and total IPC deposits of

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146 FEDERAL DEPOSIT INSURANCE CORPORATION

$6,766,000. The banks would merge under the charter and title of Proctor 

Trust and, as an incident to the merger, the two offices of Bethel Bank would 

become branches of the resulting bank, increasing the number of its authorized 

offices to six.

Competition. Proctor Trust operates four offices in south-central Vermont, 

all in Rutland County (1970 population 52,637). It is the fourth largest commercial bank of six such banks having offices in Rutland County and holds the 

largest share (33.3 percent) of their local IPC deposits. The three larger banks 

with offices in Rutland County range in asset size from $105 million to $172 

million. Proctor Trust is the seventh largest of 39 commercial banks in 

Vermont, holding 3.6 percent of total commercial bank deposits in the State.

Bethel Bank operates its main office in Bethel (1970 population 1,347), 

Windsor County, and one branch 20 road miles northeast in Chelsea (1970 

population 983), Orange County. Bethel Bank is the 29th largest commercial 

bank in Vermont, holding 0.6 percent of all commercial bank deposits in the 

State.

The competitive effects of the proposed merger would be felt most immediately and directly within a 15-mile radius of Bethel, reduced on the west by 

the Green Mountain range. The economy of this area is based primarily on 

agriculture, with recreation facilities also making an important contribution. Its 

1970 population was approximately 13,700, an increase of about 8 percent 

over the 1960 figure. Bethel Bank competes only with four offices of The 

Randolph National Bank, Randolph, whose total deposits approximate 

$15,000,000. The competing bank's most recent de novo office was its Bethel 

branch, which was opened on February 5, 1973. Bethel Bank holds 35.8 percent of the area's total commercial bank IPC deposits.

The closest offices of the merging banks are 32 road miles apart and their 

main offices are 40 road miles apart. A large portion of the area separating the 

two banks is sparsely populated, with mountainous terrain providing a natural 

barrier that separates their respective trade areas. The proposed merger would 

eliminate no existing competition between Proctor Trust and Bethel Bank.

Throughout its recent history, Bethel Bank has pursued a relatively conservative lending policy. Its June 30, 1973, loans-to-assets ratio of 22.5 percent 

is well below that of its only competitor and the average of all commercial 

banks in the State. Further, on June 30, 1973, it held 72.8 percent of its total 

assets in cash, due from banks, and U.S. Government securities. The proposed 

merger would provide a stronger competitive climate for The Randolph National Bank in Bethel Bank's local banking market.

Vermont law allows statewide merging and de novo branching. Bethel Bank 

was organized in 1933 and simultaneously established its Orange County 

Branch in Chelsea. It has since shown no inclination to establish de novo

branches and it is unlikely that this management attitude would change in the 

foreseeable future. Proctor Trust has the capacity to branch into the Bethel 

banking market, but this appears to be an unlikely prospect. Windsor County's 

1970 population increased only 3.8 percent over its 1960 population, well 

below the State average, while Orange County's growth in population was 

slightly below the State average. The population in Bethel Bank's local market 

increased only 8 percent between 1960 and 1970 and there is little sign of any 

significant future growth. In addition, population per banking office is only 

about 2,280, compared to the State figure of approximately 3,060, while

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income levels are similar to the statewide figures. Moreover, should future 

development warrant additional commercial bank facilities in the Bethel area, 

there are numerous larger banks that can also establish de novo offices there. 

Any loss of potential competition resulting from the proposed merger appears, 

therefore, to be competitively insignificant.

Statewide, consummation of the proposed merger would increase Proctor 

Trust's share of total commercial bank deposits to 4.2 percent, and it would 

become the State's sixth largest commercial bank. The State's five larger commercial banks would then hold 54.8 percent of Vermont's total commercial 

bank deposits. Because of Bethel Bank's small size and the limited percentage 

of the State's total commercial bank deposits held by Proctor Trust, the proposed merger would have no material effect on the statewide commercial banking structure in Vermont.

Based on the foregoing, the Board of Directors has concluded that the 

proposed merger would not, in any section of the country, substantially lessen 

competition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. The financial resources of Proctor Trust and Bethel Bank are adequate. Although Proctor 

Trust's managerial resources are satisfactory, Bethel Bank faces a management 

succession problem, and its future prospects of operating independently would 

appear to depend on obtaining successor management. Proctor Trust's future 

prospects are satisfactory, as are those of the resulting bank.

Convenience and Needs o f the Community to be Served. The proposed 

merger would have little effect on the services presently offered by Proctor 

Trust in Rutland County. Residents in the local Bethel banking market would 

receive the benefit of a more aggressive bank competing with the only other 

local bank for their patronage, particularly in the lending field. In addition, a 

full range of trust services, not presently available in the community, would be 

offered. Present customers of Bethel Bank would also have available a large 

lending limit, a wider variety of loan and deposit options, and automated 

deposit and consumer loan accounting services.

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

T o be

operated

The Central Jersey Bank and Trust Company

Freehold Township, New Jersey

398,933 24 27

to merge with

Mid State Bank and Trust Company

East Brunswick Township

35,854 3

Summary report by Attorney General, November 30, 1973

Bank's three offices are located in East Brunswick and South River, in 

Middlesex County. Applicant operates two offices in Union County, which lies

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148 FEDERAL DEPOSIT INSURANCE CORPORATION

adjacent to Middlesex County to the north, and 22 offices in Monmouth 

County, which lies to the south of Middlesex County. The nearest offices of 

the parties are separated by a distance of about 15 miles, with some competitive alternative:; in the intervening area. It appears that the proposed merger 

would eliminate only limited existing competition, and would not substantially 

increase concentration in any relevant banking market.

Although Applicant could establish de novo offices in central Middlesex 

County, the relatively modest market position of Bank coupled with the existence of other potential entrants diminishes the effects of the proposed transaction on potertial competition.

Therefore, we conclude that the proposed acquisition would not have a 

substantial competitive impact.

Basis for Corporation approval, December 17, 1973

The Central Jersey Bank and Trust Company, Freehold Township, New 

Jersey ("Central"), a State nonmember insured bank with total resources of 

$398,933,000 and total IPC deposits of $311,043,000, has applied, pursuant 

to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for 

the Corporation's prior consent +o merge with Mid State Bank and Trust Company, East Brunswick Township, New Jersey ("Mid State"), with total resources of $35,854,000 and IPC deposits of $28,874,000. The banks would 

merge under the charter and title of Central and, as an incident to the merger, 

the three offices of Mid State would become branches of the resulting bank, 

which would then have a total of 27 offices.

Competition. Central operates 22 offices throughout Monmouth County 

(population 461,849) and two offices in central Union County (population 

543,116). Both counties are in eastern New Jersey in close proximity to New 

York City and other major urban areas. Union County has a more mature 

economy, but rapid growth is continuing in Monmouth County. The household 

median income of both counties is above the State average.

Mid State operates its main office and one branch in East Brunswick Township (population 34,166) and one branch in South River Borough (population 

15,428). All three locations are in the central portion of Middlesex County 

(1970 population 583,813, up 34.6 percent since 1960), which lies between 

Union County on the north and Monmouth County on the east and south. The 

1972 household median income for Middlesex County was 10.0 percent above 

the State average of $9,878.

The proposed merger would have little or no effect in any area presently 

served by Central. Its effect would be largely confined to Middlesex County, 

which constitutes the New Brunswick-Perth Amboy-Sayreville SMSA and in 

which Mid State has all of its offices. Middlesex County has 24 commercial 

banks and 88 commercial bank offices. Mid State holds the 10th largest share 

(3.7 percent) of all Middlesex County IPC deposits. Each of the State's four 

largest banking organizations competes in Middlesex County, but Central is 

unrepresented in the market. Its closest office to a Mid State office is about 10 

miles away, and there are offices of other commercial banks in the intervening 

area. In addition, neither bank originates more than a nominal volume of 

business from areas served by the other. Central and Mid State in effect serve 

separate distinct banking markets, and their proposed merger would not eliminate any significant existing competition between them.

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New Jersey law permits statewide branch banking, subject to certain restrictions relating to office protection. Mid State, however, lacks the financial and 

managerial resources to engage in any meaningful de novo branching within the 

market areas served by Central. Central is prohibited from de novo entry into 

East Brunswick Township because of the home office protection feature of 

State law, but it has the clear capacity to enter the Middlesex County market 

and must be considered a likely entrant in view of the economic attractiveness 

of the county, the adjacent proximity of Central's offices, and the relatively 

high population for each commercial bank office that presently exists. Mid 

State, however, has a small percentage of the Middlesex County market; 23 

other banks compete in the market, including most of the State's largest banking organizations; and vigorous competition in the future seems assured. The 

Corporation concludes that any elimination of potential competition between 

Central and Mid State that may be caused by their merger would be competitively insignificant in view of the present structure of the market.

Commercial banking in New Jersey is relatively unconcentrated at the present time. The two largest commercial banking organizations, each a multibank 

holding company with total deposits in excess of $1.3 billion, have an aggregate of only 14.2 percent of the total commercial bank deposits in the State. 

Central has 1.9 percent of such deposits and the resulting bank would have 

only 2.0 percent of the State's commercial bank deposits. Neither of the participating banks is affiliated with a holding company, but the resulting bank 

would still be faced with many competitors who are so affiliated. The proposed 

merger is not likely to have any perceptible effect on the structure of commercial banking in New Jersey.

Under these circumstances, the Board of Directors is of the opinion that the 

proposed merger would not, in any section of the country, substantially lessen 

competition, 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 and future prospects for both banks are considered adequate for their present operations and are so projected for the resulting bank.

Convenience and Needs o f the Community to be Served. The effects of the 

proposed merger would be felt primarily by customers of Mid State to whom a 

full range of banking services would be offered by the resulting bank, including 

computer services, improved trust services and a credit card services. In addition, the resulting bank would have a lending lim it of $3 million compared to 

Mid State's $270 thousand. All of these services are presently available from 

other banks in the market, but the proposed merger would result in another 

meaningful alternative for these services to residents and businessmen in 

Middlesex County.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

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Merger transactions were involved in the acquisitions of banks by holding 

companies in the following approvals in 1973. In each instance, the Attorney 

General's report stated that the proposed transaction would have no effect on 

competition. The Corporation's basis for approval in each case stated that the 

proposed transaction would not, per se, change the competitive 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.

Merchants Bank, Cleveland, Tennessee; offices: 4; resources: 37,394 ($000); 

to merge with Third State Bank in Cleveland', Cleveland, in organization; offices: 0; resources: 150 ($000). Approved: January 22.

Bank o f Knoxville, Knoxville, Tennessee; offices: 5; resources: 45,778 

($000); to merge with Third State Bank, Knoxville, in organization; offices: 0; 

resources: 300 ($000). Approved: February 5.

Highway State Bank, Sugar Land, Texas; in organization; offices: 0; resources: 50 ($000); to merge with and change title to Sugar Land State Bank,

Sugar Land; offices: 1; resources: 12,433 ($000). Approved: February 5.

Valley Bank and Trust Company, Salt Lake City, Utah; offices: 12; resources: 163,405 ($000); to merge with Valley Bank, Salt Lake City, in organization; offices: 0; resources: 60 ($000). Approved: February 5.

New Union State Bank, Carrizo Springs, Texas, in organization; offices: 0; 

resources: 50 ($000); to acquire the assets and assume the liabilities of, and 

change title to Union State Bank, Carrizo Springs; offices: 1; resources: 4,653 

($000). Approved: March 12.

Stambaugh State Bank, Stambaugh, Michigan, in organization; offices: 0; 

resources: 120 ($000); to merge with and change title to The Commercial Bank

o f Stambaugh, Stambaugh; offices: 2; resources: 6,471 ($000). Approved: 

March 19.

North Central State Bank, Cadillac, Michigan, in organization; offices: 0; 

resources: 120 ($000); to merge with and change title to The Cadillac State

Bank, Cadillac; offices: 10; resources: 83,498 ($000). Approved: March 26.

FNB Bank, Cadillac, Michigan, in organization; offices: 0; resources: 120 

($000); to merge with and change title to First National Bank o f Cadillac,

Cadillac; offices: 1; resources: 16,135 ($000). Approved: April 6.

The Detroit Bank and Trust Company, Detroit, Michigan; offices: 84; resources: 2,533,284 ($000); to consolidate with Bank and Trust Company o f

Detroit, Detroit, in organization; offices: 0; resources: 240 ($000). Approved: 

April 13.

P.B.T. Bank, Davidson, North Carolina, in organization; offices: 0; resources: 150 ($000); to merge with and change title to Piedmont Bank and

Trust Company, Davidson; offices: 9; resources: 33,331 ($000). Approved: 

April 23.

Capitol City Bank, Richmond, Virginia, in organization; offices: 0; resources: 50 ($000); to merge with and change title to Virginia Trust Company,

Richmond; offices: 2; resources: 45,929 ($000). Approved: April 23.

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Lamar County Bank, Sulligent, Alabama, in organization; offices: 0; resources: 60 ($000); to merge with Bank o f SuUigent and change title to The

Bank o f Sulligent, Sulligent; offices: 2; resources: 10,116 ($000). Approved: 

April 30.

American Bank and Trust Company, Lansing, Michigan; offices: 14; resources: 224,095 ($000); to consolidate with American State Bank, Lansing, in 

organization; offices: 0; resources: 125 ($000). Approved: May 14.

Volunteer-State Bank, Knoxville, Tennessee; offices: 4; resources: 26,723 

($000); to merge with Knoxville Interim Bank, Knoxville, in organization; 

offices: 0; resources: 112 ($000). Approved: May 14.

Farmers-Peoples Bank, Milan, Tennessee; offices: 2; resources: 18,232 

($000); to merge with Milan Interim Bank, Milan, in organization; offices: 0; 

resources: 112 ($000). Approved: May 14.

Bancorp State Bank, Malakoff, Texas, in organization; offices: 0; resources: 

50 ($000); to merge with and change title to Citizens State Bank, Malakoff; 

offices: 1; resources: 5,768 ($000). Approved: May 21.

Bowen Road State Bank, Arlington, Texas, in organization; offices: 0; resources: 200 ($000); to merge with and change title to Arlington Bank o f

Commerce, Arlington; offices: 1; resources: 11,345 ($000). Approved: May 

25.

Pleasant State Bank, Dallas,Texas, in organization; offices: 0; resources: 200 

($000); to merge with and change title to Grove State Bank, Dallas; offices: 1; 

resources: 22,182 ($000). Approved: May 25.

Citizens Trust Company, Atlanta, Georgia; offices: 3; resources: 40,745 

($000); to merge with C.T.B. Bank, Atlanta, in organization; offices: 0; resources: 0; and change title to Citizens Trust Bank. Approved: June 11.

Concord State Bank, Beaumont, Texas, in organization; offices: 0; resources: 300 ($000); to merge with and change title to The Village State Bank,

Beaumont; offices: 1; resources: 10,093 ($000). Approved: June 11.

Cowboys State Bank, Dallas, Texas, in organization; offices; 0; resources: 

200 ($000); to merge with and change title to Park Cities Bank and Trust

Company, Dallas; offices: 1; resources: 38,189 ($000). Approved: June 11.

Twelfth Street State Bank, Dallas Texas, in organization; offices: 0; resources: 200 ($000); to merge with and change title to American Bank and

Trust Company, Dallas; offices: 1; resources: 59,387 ($000). Approved: June 

11.

Plymouth Park State Bank, Irving, Texas, in organization; offices: 0; resources: 200 ($000); to merge with and change title to Southwest Bank and

Trust Company, Irving; offices: 1; resources: 46,108 ($000). Approved: June 

11.

Lancaster State Bank, Lancaster, Texas, in organization; offices: 0; resources: 120 ($000); to merge with and change title to Bank o f Lancaster,

Lancaster; offices: 1; resources: 6,048 ($000). Approved: June 11.

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Crescent Bank and Trust Company, Greenville, South Carolina, in organization; offices: 0; resources: 200 ($000); to merge with and change title to 

Southern Bank and Trust Company, Greenville; offices: 27; resources: 151,429 

($000). Approved: July 31.

Falmouth Bank, Falmouth, Virginia, in organization; offices: 0; resources: 

60 ($000); to merge with and change title to The Peoples Bank o f Stafford,

Falmouth; offices: 4; resources: 16,738 ($000). Approved: August 28.

State Bank o f Elizabethton, Elizabethton, Tennessee, in organization; offices: 0; resources: 113 ($000); to merge with and change title to Citizens Bank,

Elizabethton; offices: 4; resources: 27,031 ($000). Approved: September 24.

United Virginia Bank o f Spotsylvania, Spotsylvania Court House, Virginia, 

in organization; offices: 0; resources: 50 ($000); to merge with Bank o f Spotsylvania, Spotsylvania Court House; offices: 1; resources: 3,871 ($000). Approved: September 24.

City Bank o f Petersburg, Petersburg, Virginia, in organization; offices: 0; 

resources: 250 ($000); to merge with and change title to City Savings Bank and

Trust Company, Petersburg; offices: 4; resources: 20,851 ($000). Approved: 

October 15.

First State Bank, Knoxville, Tennessee, in organization; offices: 0; resources: 300 ($000); to merge with and change title to The Fountain City

Bank, Knoxville; offices: 4; resources: 57,856 ($000). Approved: October 30.

Irving Commerce Bank, Irving, Texas, in organization; offices: 0; resources: 

200 ($000); to merge with and change title to Irving Bank and Trust Company,

Irving; offices: 1; resources: 67,563 ($000). Approved: November 9.

Alabama Bank o f Bay Minette, Bay Minette, Alabama, in organization; offices: 0; resources: 100 ($000); to merge with and change title to Baldwin

County Bank, Bay Minette; offices: 2; resources: 17,046 ($000). Approved: 

November 19.

MSB Bank, Moline, Michigan, in organization; offices: 0; resources: 120 

($000); to consolidate with and change title to The Moline State Bank, Moline; 

offices: 1; resources: 5,071 ($000). Approved: November 19.

Beltline State Bank, Carrollton, Texas, in organization; offices: 0; resources: 

75 ($000); to merge with and change title to The Dallas County State Bank,

Carrollton; offices: 1; resources: 18,928 ($000). Approved: November 19.

Union Bank, Tucson, Arizona; offices: 3; resources: 100,308 ($000); to 

merge with Union Industries, Inc., Tucson; offices: 0; resources: 0. Approved: 

November 29.

L.J. Bank, Joliet, Illinois, in organization; offices: 0; resources: 350 ($000); 

to merge with and change title to Louis Joliet Bank, Joliet; offices: 1; resources: 41,87 I ($000). Approved: November 29.

The Sanford Bank, Sanford, North Carolina, in organization; offices: 0; 

resources: 300 ($000); to merge with and change title to The Carolina Bank,

Sanford; offices: 14; resources: 84,302 ($000); Approved: November 29.

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The Carrollton Bank, Carrollton, Ohio, in organization; offices: 0; resources: 312 ($000); to merge with and change title to The Cummings Bank

Company, Carrollton; offices: 3; resources: 14,503 ($000). Approved: November 29.

The Ohio State Bank, Vandalia, Ohio, in organization; offices: 0; resources: 

625 ($000); to merge with The Imperial State Bank, Vandalia; offices: 2; 

resources: 8,570 ($000). Approved: November 29.

Sumner County State Bank, Gallatin, Tennessee, in organization; offices: 0; 

resources: 113 ($000); to merge with and change title to Sumner County Bank

and Trust Company, Gallatin; offices: 1; resources: 9,902 ($000). Approved: 

November 29.

The Bank o f Jackson, Jackson, Tennessee, in organization; offices: 0; resources: 150 ($000); to merge with and change title to Jackson State Bank,

Jackson; offices: 2; resources: 20,322 ($000). Approved: November 29.

First Tennessee Bank o f Greene County, Mosheim, Tennessee, in organization; offices: 0; resources: 75 ($000); to merge with Mosheim Bank, Mosheim; 

offices: 2; resources: 9,981 ($000). Approved: November 29.

Third State Bank in Pulaski, Pulaski, Tennessee, in organization; offices: 0; 

resources: 120 ($000); to merge with and change title to The Union Bank,

Pulaski; offices: 3; resources: 30,818 ($000). Approved: November 29.

United Virginia Bank/Peoples o f Gretna,Gretna, Virginia, in organization; 

offices: 0; resources: 50 ($000); to merge with Peoples Bank o f Gretna, Gretna; offices: 1; resources: 14,729 ($000). Approved: November 29.

Hamilton State Bank of Johnson City, Johnson City, Tennessee, in organization; offices: 0; resources: 150 ($000); to merge with and change title to 

Flamilton Bank o f Johnson City, Johnson City; offices: 7; resources: 85,535 

($000). Approved: December 17.

Hamilton State Bank o f Marion County, South Pittsburg, Tennessee, in 

organization; offices: 0; resources: 75 ($000); to merge with and change title 

to Hamilton Bank o f Marion County, South Pittsburg; offices: 2; resources: 

15,783 ($000). Approved: December 17.

Hamilton State Bank o f Rhea County, Spring City, Tennessee, in organization; offices: 0; resources: 75 ($000); to merge with and change title to Hamilton Bank o f Rhea County, Spring City; offices: 2; resources: 11,599 ($000). 

Approved: December 17.

Commercial New Bank, Midland, Texas, in organization; offices: 0; resources: 200 ($000); to merge with and change title to Commercial Bank &

Trust Co., Midland; offices: 1; resources: 35,413 ($000). Approved: December 

19.

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LEGISLATION AND REGULATIONS

PARTTHREE

J

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157

FEDERAL LEGISLATION - 1973

Public Law 93-100. Public law 93-100, approved by the President 

on August 16, 1973, extended until December 31, 1974, the statutory authority of the Board of Governors of the Federal Reserve 

System, the Board of Directors of the Federal Deposit Insurance 

Corporation, and the Federal Home Loan Bank Board to regulate in 

a flexible manner the interest rates payable by insured banks and 

members of the Federal Home Loan Bank System on time and 

savings deposits and share accounts. In addition. Public Law 93-100 

prohibits depository institutions in States other than Massachusetts 

and New Hampshire from offering interest-bearing accounts from 

which depositors are permitted to make transfers of funds by negotiable orders of withdrawal (NOW accounts). Public Law 93-100 

also authorizes Federal savings and loan associations and national 

banks to own stock in and invest in loans to certain State housing 

corporations.

Public Law 93-123. Public Law 93-123, approved October 15, 

1973, instructs the Secretary of the Treasury, the Board of Governors of the Federal Reserve System, the Board of Directors of the 

Federal Deposit Insurance Corporation, and the Federal Home 

Loan Bank Board to take action to limit the rates of interest that 

may be paid on time deposits of less than $100,000 by institutions 

regulated by them. The enactment of Public Law 93-123 was Congress' response to the rules and regulations issued by the Federal 

bank supervisory agencies that created a new category of time deposits for which there was no prescribed maximum interest rate. 

These “ ceiling-free" time deposits were required to mature in not 

less than 4 years and had to be in amounts of $1,000 or more.

Flood Disaster Protection Act of 1973. The Flood Disaster Protection Act of 1973 (Public Law 93-234), approved by the President on December 31, 1973, requires the appropriate Federal supervisory agencies to issue regulations prohibiting banks, savings and 

loan associations, and other similar institutions under their jurisdiction from making certain loans in any area that has been identified by the Secretary of Housing and Urban Development as an area 

in which there are special flood hazards. These institutions are prohibited from making any loan, on or after March 2, 1974, that is 

secured by improved real estate or a mobile home located in such 

area where flood insurance has been made available under The 

National Flood Insurance Act of 1968, unless the building or 

mobile home and any personal property securing the loan is covered 

by adequate flood insurance. In addition, on or after July 1, 1975, 

federally supervised banks and other similar institutions will be prohibited from making loans secured by improved real estate or 

mobile homes in designated flood hazard areas unless the comDigitized for FRASER 

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158 FEDERAL DEPOSIT INSURANCE CORPORATION

munity in which the area is situated is then participating in The 

National Flood Insurance Program.

The Flood Disaster Protection Act of 1973 also authorizes national banks, subject to certain restrictions, to purchase shares of 

stock issued by agricultural credit corporations. While this provision 

of the Act does not directly affect State nonmember banks, whose 

authority to acquire stock in agricultural credit corporations is governed exclusively by State law, its enactment could encourage State 

legislation to grant State nonmember banks similar investment 

powers.

RULES AND REGULATIONS AND STATEMENTS 

OF GENERAL POLICY

Delegation of authority to Regional Directors to approve branch 

applications. Amendments to sections 303.11 and 303.12 of the 

Corporation's rules and regulations (12 CFR §§ 303.11 and 

303.12), effective March 1, 1973, delegate the authority of the 

Corporation's Board of Directors to approve applications for new 

branches under certain circumstances to the Corporation's Director 

of the Division of Bank Supervision. The Director is empowered to 

redelegate the authority to the Corporation's 14 Regional Directors. 

As a result of this delegated authority, it is expected that at least 60 

percent of all branch applications filed by nonmember insured banks 

will be processed at the regional office level.

The following circumstances must exist before approval of a de

novo branch application can be granted at the regional level:

1. All necessary final approvals from the appropriate State 

authority must have been obtained.

2. The six factors set forth in section 6 of the Federal Deposit Insurance Act must have been considered and favorably resolved.

3. The applicant must be in substantial compliance with the 

Corporation's rules and regulations.

4. Adequate fidelity coverage must be present.

5. Legal fees and other expenses incurred in connection with 

the proposed branch must be consistent with the Corporation's policy.

6. Establishment of the branch must not have a significantly 

adverse effect on competition in any relevant area or lead 

to destructive competition.

7. Adjusted capital and reserves must be at least 7.5 percent 

of adjusted gross assets for commercial banks and 6 percent for mutual or guaranty savings banks.

8. Aggregate fixed asset investment, including investment in

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the proposed branch, cannot exceed 50 percent of the 

applicant's adjusted capital and reserves.

9. During the third year of its operations, if not before, 

estimated income of the proposed branch must equal or 

exceed its expenses; or, earnings must be adequate to support limited operating losses incurred by the branch during 

its formative years.

10. The applicant's management must have been rated "fa ir" 

or better in the Corporation's most recent examination.

11. Financial arrangements involving the proposed branch and 

the applicant's directors, officers, or major shareholders 

must be fair and reasonable.

In processing branch applications, neither the Director of the 

Division of Bank Supervision nor the Corporation's Regional Directors must approve all applications that satisfy the required circumstances. It is within their discretion not to act on an application and 

to forward it instead to the Corporation's Board of Directors. The 

new regulation does not delegate the authority to deny branch 

applications; that authority remains solely with the Corporation's 

Board of Directors. Applications for new branches that do not meet 

all of the required circumstances may be approved only by the 

Board of Directors.

Application procedures for deposit insurance, new branches, and 

office relocations. Effective April 1, 1973, the Corporation amended its rules and regulations dealing with application procedures for 

deposit insurance, new branches, office relocations, and any other 

applications, requests, or submittals that the Board of Directors 

deems appropriate. The new regulations require that an applicant 

publish a notice containing the name of the applicant or applicants, 

the subject matter of the application, the location at which the 

applicant proposes to engage in business, and the date upon which 

the application was accepted for filing. In addition, the notice must 

provide that anyone who wishes to comment on the application 

may do so by filing his comments in writing with the Corporation's 

Regional Director, and that anyone who wishes to protest the granting of the application has the right to do so if he files a written 

notice of his intent with the Regional Director within 15 days of 

the date of the publication of the notice. The new regulations also 

require that the Corporation establish, at its Regional Office, a 

public file of materials submitted, withholding only limited confidential information. The file will also contain portions of the investigation report, prepared by the Corporation's field examiner in 

connection with the application, that cover future earnings prospects and the convenience and needs of the community to be served 

by the applicant. Provisions are set forth as to the type of hearing 

to be held and how it will be conducted if the Corporation decides

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160 FEDERAL DEPOSIT INSURANCE CORPORATION

to hold a hearing on request of an interested party or on its own 

motion. Provision is also made for informal proceedings when a 

full-scale hearing is not held.

Interest rate regulations. Effective May 17, 1973, an amendment 

to section 329.7(b)(2) of the Corporation's rules and regulations 

(12 CFR § 329.7(b)(2)) suspended ceilings on interest rates payable on single-maturity time deposits in denominations of $100,000 

or more. The suspension, which affects all banks subject to Part 329 

of the Corporation's rules and regulations, will remain in effect 

until the Corporation takes further action. In addition, effective 

July 1, 1973, the Corporation's regulations that establish maximum 

interest rates that insured State nonmember banks (including insured mutual savings banks) may pay on time and savings deposits 

were amended to establish new interest rate structures for consumer 

types of deposits in insured nonmember commercial and mutual 

savings banks. The amendments authorized insured nonmember 

banks to increase the maximum rate of interest they could pay on 

passbook savings deposits, authorized insured nonmember banks to 

increase the maximum interest rates payable on most categories of 

time deposits, and established a new category of time deposits on 

which there was no interest rate ceiling ("ceiling-free" time deposits). Deposits in this latter category had to mature in not less 

than 4 years and had to be in amounts of $1,000 or more.

Also effective July 1, 1973, the Board of Directors amended 

section 329.4 of the Corporation's rules and regulations (12 CFR 

§329.4) that provides that no time deposit may be paid before 

maturity except as authorized by paragraph (d) of that section. 

Prior to the amendment, paragraph (d) permitted the payment of 

all or part of a time deposit prior to maturity only where the 

depositor signed a statement that he needed the funds in his deposit 

account and forfeited accrued and unpaid interest for a period of 

not less than 3 months on the amount withdrawn. Paragraph (d) has 

been revised so as to eliminate the requirement for a statement of 

need. Under the revision, an insured State nonmember bank may 

pay any time deposit prior to maturity so long as the rate of interest on the amount withdrawn does not exceed the maximum rate 

that the bank may pay on savings deposits on the date of w ithdrawal. In addition, the depositor must forfeit all interest on the 

amount withdrawn (calculated at the savings deposit rate) for a 

period of 3 months, or for the length of time the funds have been 

on deposit if less than 3 months.

On July 26, 1973, the Board of Directors established a percentage limitation on the "ceiling-free" time deposits established by the 

earlier amendments to sections 329.6 and 329.7 of the Corporation's rules and regulations (12 CFR §§ 329.6 and 329.7). Effective August 1, 1973, these deposits could not exceed 5 percent of

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Federal Reserve Bank of St. Louis
RULES AND REGULATIONS OF THE CORPORATION 161

an insured nonmember bank's total domestic time and savings deposits. The Board of Directors subsequently established an alternative to this 5 percent limitation. Effective August 17, 1973, 

"ceiling-free" time deposits could not exceed 5 percent of an insured nonmember bank's total domestic time and savings deposits, 

or $500,000, whichever was greater.

On August 14, 1973, the Board of Directors further amended 

sections 329.6 and 329.7 of the Corporation's rules and regulations 

to permit certain conversions of preexisting time deposits to "ceiling-free" time deposits in the same bank, notwithstanding the 5 

percent or $500,000 limitation. These amendments were also effective August 17, 1973. On September 7, 1973, the Board of Directors made one additional change in the regulations governing "ceiling-free" time deposits in insured nonmember mutual savings banks. 

These banks were permitted to transfer funds in certain matured 

time deposits to "ceiling-free" time deposits so long as the total 

amount of the bank's "ceiling-free" time deposits did not exceed 10 

percent of its total domestic time and savings deposits, or 

$500,000, whichever was greater. This change was made effective 

September 10, 1973. Effective September 20, 1973, the Board of 

Directors amended section 329.0 of the Corporation's rules and 

regulations (12 CFR § 329.0) to extend the provisions of Part 329 

to banks in Massachusetts (including mutual savings banks) that are 

not insured by the Corporation.

Subsequent to the adoption of the preceding amendments, Congress passed a joint resolution calling upon the Federal agencies that 

supervise financial institutions to "lim it the rates of interest or 

dividends which may be paid on time deposits of less than 

$100,000 by institutions regulated by them." The joint resolution 

became law on October 15, 1973 (Public Law 93-123). Accordingly, the Board of Directors was required to impose rate limitations on all "ceiling-free" deposits in banks subject to its jurisdiction. After consulting with representatives of the Secretary of the 

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

and the Federal Home Loan Bank Board, the Board of Directors 

amended sections 329.6 and 329.7 of the Corporation's rules and 

regulations so as to limit the interest rates payable on deposits of 

$1,000 or more with maturities of 4 years or more. Effective 

November 1, 1973, insured nonmember commercial banks are not 

permitted to pay interest on such deposits at a rate in excess of TA

percent per annum, and insured nonmember mutual savings banks 

(including noninsured mutual savings banks in Massachusetts) are 

not permitted to pay interest on such deposits at a rate in excess of 

Th percent per annum. These new rate limitations did not apply to 

any time deposit contract entered into prior to November 1, 1973. 

Effective the same date, the Board of Directors also concluded that

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

there would no longer be any need for a limitation on the amount 

of such deposits that may be accepted by one bank.

Effective September 10, 1973, section 329.4 of the Corporation's rules and regulations (12 CFR § 329.4) was amended so as to 

prevent an insured nonmember bank from increasing the rate of 

interest paid on an existing time deposit or converting that deposit 

to one having a longer maturity— if it bears a higher rate of interest 

after conversion— unless the depositor pays the appropriate penalty 

for withdrawal of the funds prior to maturity. The one exception to 

this requirement permits increases in the rate of interest paid on a 

time deposit without penalty where the increase is explicitly authorized by the terms of the original deposit contract and the bank 

does not retain the option to grant or deny the increase. This 

amendment represents a change in the Corporation's position of 

allowing an insured nonmember bank to raise the interest rate paid 

on an existing time deposit without penalizing the depositor. For 

this reason, the Board of Directors considered it important that all 

insured nonmember banks make adequate disclosure of the w ithdrawal penalties to their customers. Accordingly, sections 329.4 

and 329.8 of the Corporation's rules and regulations were amended 

so as to require that all insured nonmember banks' advertisements, 

announcements, or solicitations that relate to the interest paid on 

time deposits include a clear and conspicuous statement that a 

“ substantial penalty” will be imposed where a depositor is permitted to withdraw all or part of his time deposit before maturity. 

In addition, each depositor must be given a separate disclosure 

statement at the time he enters into a time deposit contract with 

the bank. Among other things, this statement must clearly describe 

the penalty for early withdrawal. This penalty may be the minimum 

penalty prescribed by section 329.4(d), as amended, or a more 

severe penalty chosen by the bank.

Statement of Policy regarding bank loans to the Corporation's 

examiners. On August 2, 1973, the Corporation's Board of Directors issued a policy statement describing the circumstances under 

which the Corporation's examiners would be permitted to negotiate 

and accept loans from national banks, District banks, and State 

member banks. Initially, the statement noted that section 212 of 

title 18, Uniteid States Code, prohibits any officer, director, or employee of a bank, the deposits of which are insured by the Corporation, from making a loan to any governmental examiner "who 

examines or has authority to examine" such bank, and that section 

213 of title 18, United States Code, prohibits a bank examiner, in 

turn, from "accept [ing] a loan from any bank, corporation, association or organization examined by him or from any person connected therewith." Since the latter prohibition could be construed to 

apply to a Corporation examiner's acceptance of a loan from a

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Federal Reserve Bank of St. Louis
RULES AND REGULATIONS OF THE CORPORATION 163

national bank, District bank, or State member bank that is affiliated 

with an insured State nonmember bank examined by him, the 

policy statement provides that no loan may be made to a Corporation examiner by a national bank. District bank, or State member 

bank that is affiliated in a holding company system with an insured 

State nonmember bank, and no such loan should be accepted by a 

Corporation examiner.

In the event a national bank, District bank, or State member 

bank making a loan to a Corporation examiner becomes affiliated 

with an insured State nonmember bank subsequent to the making 

of the loan, the policy statement requires that the loan be promptly 

removed and that other suitable arrangements be made. Prior to the 

removal of the loan, the examiner in question will not be permitted 

to examine any insured State nonmember bank that is affiliated 

under a holding company system or otherwise with the national 

bank, District bank, or State member bank that made the loan to 

him.

Interpretative Statement of the Legal Division concerning the 

advertising of interest on time and savings deposits. On October 11, 

1973, the Board of Directors authorized the release of an interpretative statement of the Corporation's Legal Division concerning 

the meaning and application of certain disclosure requirements contained in the Corporation's regulations pertaining to the advertising 

of interest on time and savings deposits. The underlying regulation 

(section 329.8 of the Corporation's rules and regulations, 12 CFR § 

329.8) prescribes the manner in which insured banks that are not 

members of the Federal Reserve System, as well as noninsured mutual savings banks in Massachusetts, may advertise the interest or 

dividends they pay on time and savings deposits. This regulation 

also sets forth a general proscription against "inaccurate" or "m isleading" advertisements or those that "misrepresent" the deposit 

contract offered. The Legal Division's statement stipulates that this 

general proscription should be taken "as prohibiting any statement 

or claim which incorrectly represents the terms and conditions of 

the deposit contracts offered or which has a tendency or capacity 

to deceive or to leave an erroneous impression." The statement 

emphasizes the importance of avoiding "exaggerated, overly generalized or unsubstantiated claims or assertions or ambiguous statements reasonably susceptible to a construction that is or may be 

false or erroneous."

Six specific examples of the types of advertising that should be 

avoided, based on practices that have come to the Legal Division's 

attention, were included in the interpretative statement. In addition, the statement warned that, in the future, violations of section 

329.8 will, in appropriate circumstances, result in a recommendation by the Legal Division to the Board of Directors of the CorporaDigitized for FRASER 

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

tion that formal enforcement action be taken against alleged violators. The Board of Directors indicated that the purpose of 

publishing the Legal Division's interpretative statement was to encourage more general compliance with the evident spirit and purpose of the regulation and to inform all banks subject to the regulation of the Legal Division's intent, in appropriate cases, to recommend formal enforcement action by the Corporation.

Bank security regulations. Effective November 1, 1973, the Corporation amended Appendix A to section 326.7 of its rules and 

regulations (12 CFR § 326.7 (Appendix A)) to implement the 

provisions of the Bank Protection Act of 1968 (83 Stat. 295). The 

major revisions are (1) the provision of minimum standards for cash 

dispensing (and cash accepting) machines; (2) the provision of minimum standards for safe deposit box storage; (3) the elimination of 

the use of steel vault liners as a substitute for poured concrete 

vaults of specific steel reinforcement; and (4) the definition of the 

term "vault" so as to avoid confusion with "safes" and to be more 

definite as to the construction standards for vaults.

NOW account regulations. On December 7, 1973, pursuant to the 

requirements of Public Law 93-100, Chairman Frank WiHe announced the adoption of NOW (negotiable order of withdrawal) 

account regulations, to be effective January 1, 1974, applicable to 

mutual savings banks and insured nonmember commercial banks in 

Massachusetts and New Hampshire. The regulations provide that (1) 

the maximum rate of interest payable on NOW accounts is 5 percent per annum; (2) NOW accounts may be owned only by individuals, certain nonprofit organizations, and fiduciaries representing 

these individuals and nonprofit organizations, and (3) the dissemination of advertisements, announcements, or solicitations with 

respect to NOW accounts is to be limited, to the extent practicable, 

to Massachusetts and New Hampshire.

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Federal Reserve Bank of St. Louis
r

STATISTICS OF BANKS 

AND DEPOSIT INSURANCE 

PART FOUR

J

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NUMBER OF BANKS AND BRANCHES

Table 101. Changes in number and classification of banks and branches in the United States (States and 

other areas) during 1973

Table 102. Changes in number of commercial banks and branches in the United States (States and other 

areas) during 1973, by State 

Table 103. Number of banking offices in the United States (States and other areas), December 31, 1973 

Grouped according to insurance status and class o f bank, and by State or area and type o f

office

Table 104. Number and deposits of all commercial and mutual savings banks (States and other areas), 

December 31, 1973

Banks grouped by class and deposit size

Table 105. Number and deposits of all commercial banks in the United States (States and other areas), 

December 31, 1973

Banks grouped by deposit size and State

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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;

Special types of banks of deposit; regulated certificated banks, and a 

savings and loan company operating under Superior Court charter in 

Georgia; government-operated banks in North Dakota and Puerto Rico; a 

cooperative bank, usually classified as a credit union, operating under a 

special charter in New Hampshire; a savings institution, known as a "trust 

company,” operating under special charter in Texas; 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 New York, Oregon, Washington, Puerto 

Rico, and Virgin Islands;

Private banks under State supervision, and such other private banks as are 

reported by reliable unofficial sources to be engaged in deposit banking.

Nondeposit trust companies include institutions operating under trust 

company charters which are not regularly engaged in deposit banking but are 

engaged in fiduciary business other than that incidental to real estate title or 

investment activities.

Mutual savings banks include all banks operating under State banking 

codes applying to mutual savings banks.

Institutions excluded. Institutions in the following categories are excluded, though such institutions may perform many of the same functions as 

commercial and savings banks:

Banks which have suspended operations or have ceased to accept new 

deposits and are proceeding to liquidate their assets and pay off existing 

deposits;

Building and loan associations, savings and loan associations, credit 

unions, personal loan companies, and similar institutions, chartered under 

laws applying to such institutions or under general incorporation laws, regardless of whether such institutions are authorized to accept deposits from 

the public or from their members and regardless of whether such institutions 

are called "banks" (a few institutions accepting deposits under powers 

granted in special charters are included);

Morris Plan companies, industrial banks, loan and investment companies, 

and similar institutions except those mentioned in the description of institutions included;

Branches of foreign banks and private banks which confine their business 

to foreign exchange dealings and do not receive "deposits" as that term is 

commonly understood;

Institutions chartered under banking or trust company laws, but operating as investment or title insurance companies and not engaged in deposit 

banking or fiduciary activities;

Federal Reserve Banks and other banks, such as the Federal Home Loan 

Banks and the Savings and Loan Bank of the State of New York, which 

operate as rediscount banks and do not accept deposits except from financial 

institutions.

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 which prohibit the operation of branches, such limited facilities are not considered branches within 

the meaning of State law.

NUMBER OF BANKS AND BRANCHES 167

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Table 101. CHANGES IN NUMBER AND CLASSIFICATION OF BANKS AND BRANCHES IN THE UNITED STATES

(STATES AND OTHER AREAS) DURING 1973

A ll banks Com m ercial banks and nondeposit tru s t companies M utual savings banks

Insured N oninsured

Type o f change

T otal Insured

N oninsured Total

T otal

I

Members F.R. 

System

N ot

memi

Banks

of

deposit

i

N ondeposit

tru st

com ­

panies1

T otal Insured

N oninsured

National State

F.R.

System

A L L B A N K IN G O FFIC E S

N um ber o f offices, Decem ber 31, 1 9 7 3 2 ....................................................................... 42,886 42,182 704 40,912 40,619 19,627 5,129 15,863 213 80 1,974 1,563 411

N um ber o f offices, D ecem ber 31, 19722 ....................................................................... 40,662 39,969 693 38,822 38,531 18,626 5,075 14,830 218 73 1,840 1,438 402

N et changes during y e a r ................................................................................................. +2,224 +2,213 +11 +2,090 +2,088 +1,001 +54 + 1,033 - 5 +7 +134 +125 +9

O ffices o p e n e d ............................................................................................................. 2,424 2,401 23 2,285 2,271 1,024 241 1,006 5 9 139 130 9

Banks ....................................................................................................................... 345 332 13 345 332 90 26 216 5 8 0 0 0

Branches.................................................................................................................. 2,079 2,069 10 1,940 1,939 934 215 790 0 1 139 130 9

O ffices closed................................................................................................................ 200 199 1 195 194 94 29 71 1 0 5 5 0

Banks ....................................................................................................................... 105 104 1 101 100 39 11 50 1 0 4 4 0

Branches.................................................................................................................. 95 95 0 94 94 55 18 21 0 0 1 1 0

Changes in classification ......................................................................................... 0 +11 - 1 1 0 +11 +71 - 1 5 8 +98 - 9 - 2 0 0 0

Am ong b a n k s ........................................................................................................ 0 + 11 -1 1 0 + 11 - 4 - 3 1 +46 - 9 - 2 0 0 0

Am ong branches ................................................................................................ 0 0 0 0 0 +75 - 1 2 7 + 52 0 0 0 0 0

B A N K S

N um ber o f banks, Decem ber 31, 1973 ............................................................................ 14,676 14,298 378 14,194 13,976 4,661 1,076 8,239 147 71 482 322 160

N um ber o f banks, Decem ber 3 1 ,1 9 7 2 ............................................................................ 14,436 14,059 377 13,950 13,733 4,614 1,092 8,027 152 65 486 326 160

N e t change during y e a r ................................................................................................... + 240 +239 +1 +244 +243 +47 - 1 6 +212 - 5 +6 - 4 - 4 0

Banks beginning o p e ra tio n ....................................................................................... 345 332 13 345 332 90 26 216 5 8 0 0 0

New b a n k s ............................................................................................................. 340 332 8 340 332 90 26 216 5 3 0 0 0

Banks added to c o u n t3 ...................................................................................... 5 0 5 5 0 0 0 0 0 5 0 0 0

Banks ceasing o p e ra tio n ............................................................................................ - 1 0 5 104 - 1 -1 0 1 100 - 3 9 - 1 1 - 5 0 - 1 0 - 4 - 4 0

A bsorptions, consolidations, and m ergers................................................... -1 0 2 -1 0 1 - 1 - 9 8 - 9 7 - 3 9 -1 1 - 4 7 - 1 0 - 4 - 4 0

Closed because o f financial d if f ic u lt y ........................................................... - 3 - 3 0 - 3 - 3 0 0 - 3 0 0 0 0 0

N oninsured banks becom ing in s u re d .................................................................. 0 +11 -1 1 0 +11 +1 +1 +9 - 9 - 2 0 0 0

168 FEDERAL DEPOSIT INSURANCE CORPORATION

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O ther changes in c la s s ific a tio n .............................................................................. 0 0 0 0 0 - 5 - 3 2 +37 0 0 0 0 0

N ational succeeding State b a n k .................................................................... 0 0 0 0 0 +16 - 8 - 8 0 0 0 0 0

State succeeding national bank .................................................................... 0 0 0 0 0 - 2 1 0 +21 0 0 0 0 0

A dm ission o f insured bank to F.R . S ystem ............................................... 0 0 0 0 0 0 +4 - 4 0 0 0 0 0

W ith draw al fro m F.R . System w ith co n tin u e d in s u ra n c e .................... 0 0 0 0 0 0 - 2 8 +28 0 0 0 0 0

Changes n o t in vo lvin g n um b e r in any class

Change in title ....................................................................................................... 380 366 14 373 359 140 24 195 14 0 7 7 0

Change in lo c a t io n ............................................................................................. 40 39 1 39 38 14 5 19 1 0 1 1 0

Change in title and lo c a tio n ........................................................................... 12 11 1 12 11 8 1 2 1 0 0 0 0

Change in name o f lo c a tio n ........................................................................... 55 55 0 55 55 24 5 26 0 0 0 0 0

Change in lo ca tio n w ith in c i t y ...................................................................... 330 322 8 320 312 81 13 218 7 1 10 10 0

Change in corporate powers

G ranted tru s t p o w e rs ........................................................................................ 99 99 0 99 99 0 0 99 0 0 0 0 0

BR AN C H E S

N um ber o f branches, Decem ber 31, 1 9 7 3 2 ................................................................. 28,210 27,884 326 26,718 26,643 14,966 4,053 7,624 66 9 1,492 1,241 251

N um ber o f branches, Decem ber 3 1 , 197 2 2 ................................................................. 26,226 25,910 316 24,872 24,798 14,012 3,983 6,803 66 8 1,354 1,112 242

N e t change during y e a r .................................................................................................. + 1,984 +1,974 +10 + 1,846 + 1,845 +954 + 70 +821 0 +1 +138 +129 +9

Branches opened fo r business................................................................................. 2,079 2,069 10 1,940 1,939 934 215 790 0 1 139 130 9

F acilities designated by T re a s u ry ................................................................. 5 5 0 5 5 3 0 2 0 0 0 0 0

Absorbed bank converted to b ra n c h ............................................................ 91 91 0 87 87 51 3 33 0 0 4 4 0

Branch replacing head o ffice re lo c a te d ....................................................... 32 32 0 32 32 13 3 16 0 0 0 0 0

N ew branches....................................................................................................... 1,919 1,909 10 1,785 1,784 860 203 721 0 1 134 125 9

Branches a n d /o r fa cilitie s added to c o u n t? ............................................... 32 32 0 31 31 7 6 18 0 0 1 1 0

Branches d is c o n tin u e d ............................................................................................. 95 95 0 94 94 55 18 21 0 0 - 1 - 1 0

F acilities designated by T re a s u ry ................................................................. 10 10 0 10 10 8 0 2 0 0 0 0 0

B ranches................................................................................................................. 76 76 0 75 75 41 17 17 0 0 - 1 - 1 0

Branches a n d /o r fa cilitie s deleted fro m c o u n t ........................................ 9 9 0 9 9 6 - 1 2 0 0 0 0 0

O ther changes in c la s s ific a tio n .............................................................................. 0 0 0 0 0 +75 - 1 2 7 +52 0 0 0 0 0

Branches changing class as a result o f c o n v e rs io n ................................... 0 0 0 0 0 +8 - 2 2 + 14 0 0 0 0 0

Branches transferred th rough absorption, consolidation, or merger . 0 0 0 0 0 +67 - 1 5 - 5 2 0 0 0 0 0

Branches o f insured banks w ith d ra w in g fro m F.R.S............................... 0 0 0 0 0 0 - 9 0 +90 0 0 0 0 0

Changes n o t in volving n u m ber in any class

Changes in operating powers o f b ra n c h e s .................................................. 2 2 0 2 2 2 0 0 0 0 0 0 0

Branches transferred through absorption, consolidation, or merger . 170 170 0 170 162 111 6 45 0 0 8 8 0

Changes in title , lo ca tio n , or name o f lo c a tio n ........................................ 736 734 2 736 692 374 110 208 0 0 44 42 2

1 1ncludes one nondeposit tru s t com pany th a t is a m em ber of the Federal Reserve System.

in c lu d e s fa cilitie s established at request o f the Treasury or com m anding o ffice r o f governm ent installations, and also a fe w seasonal branches th a t were n o t in operation as o f December 31. 

3 Branches opened p rio r to 1973 b u t n o t included in co u n t as o f December 3 1 ,1 9 7 3 .

NUMBER OF BANKS AND BRANCHES 169

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Table 102. CHANGES IN NUMBER OF COMMERCIAL BANKS AND BRANCHES IN THE UNITED STATES 

(STATES AND OTHER AREAS) DURING 1973, BY STATE

S tatP

In operation Net change 

during 1973

Beginning operation in 1973 Ceasing operation in 1973

Dec. 31. 1973 Dec. 31 . 1972 Banks Branches Banks Branches

Banks BranchesBanks Branches Banks Branches New O ther New O ther A bso rp tio n s O ther Branches O ther

T o ta l U n ite d S t a t e s .................. 14,194 2 6 ,71 8 13,950 24,872 +244 +1,846 340 5 1,816 124 98 3 75 19

50 States and D.C........................ 14,171 2 6 ,4 4 9 13,927 24,611 +244 +1,838 340 5 1,806 124 98 3 74 18

O th e r A r e a s ................................. 23 269 23 261 0 +8 0 0 10 0 0 0 1 1

States

A la b a m a .......................................... 287 369 277 334 + 1 0 +35 11 0 33 3 1 0 1 0

Alaska ............................................. 10 73 10 70 N A +3 0 0 3 0 0 0 0 0

A r iz o n a ......................................... 22 405 22 374 N A +31 0 0 30 1 0 0 0 P

Arkansas ....................................... 258 227 253 193 +5 +34 3 2 32 2 0 0 0 0

C a lifo r n ia ....................................... 185 3,391 165 3,259 +20 +132 25 1 138 6 6 0 11 1

C o lo r a d o ....................................... 302 42 291 35 +11 +7 12 0 5 3 1 0 1 0

C o n n e c tic u t................................. 68 518 64 498 +4 +20 4 0 21 0 0 0 1 0

D e la w a re ....................................... 19 118 19 110 NA +8 0 0 8 0 0 0 0 0

D is tric t o f C o lu m b ia .................. 15 117 14 11 2 +1 +5 1 0 5 0 0 0 0 0

F lo rid a ............................................. 646 67 581 60 +65 +7 65 0 8 0 0 0 0 i

G e o r g ia .......................................... 436 558 437 483 - 1 +75 2 0 73 3 3 0 0 1

H a w a ii............................................. 12 150 11 146 + 1 +4 1 0 2 2 0 0 0 0

Id a h o ................................................ 24 179 24 170 0 +9 1 0 8 1 1 0 0 0

I llin o is ............................................. 1,172 175 1,155 148 +17 +27 17 0 26 1 0 0 0 0

Indiana .......................................... 4 10 777 40 8 719 +2 +58 4 0 55 3 2 0 0 0

I o w a ................................................ 670 369 6 7 0 345 0 +24 2 0 23 3 2 0 2 0

K a n sa s............................................. 612 89 607 76 +5 +13 5 0 14 0 0 0 0 1

K e n tucky ....................................... 342 424 341 394 + 1 +30 2 0 31 2 1 0 1 2

L o u is ia n a ....................................... 245 4 9 0 238 443 +7 +47 8 0 47 0 0 1 0 0

M ain e............................................... 48 260 47 248 +1 + 12 1 0 13 0 0 0 1 0

M a r y la n d ....................................... 112 643 112 595 NA +48 0 0 48 0 0 0 0 0

M a ssa ch u se tts.............................. 153 853 155 814 - 2 +39 1 0 37 5 3 0 2 1

M ich ig a n .......................................... 340 1,400 332 1,330 +8 +70 10 0 72 2 2 0 3 1

M in n e so ta ....................................... 740 24 737 20 +3 +4 3 0 5 0 0 0 1 0

M ississippi....................................... 181 449 181 406 0 +43 6 0 38 8 6 0 3 0

M is s o u ri.......................................... 687 203 677 132 + 1 0 +71 10 0 74 1 0 0 3 1

M o n ta n a .......................................... 151 12 147 12 +4 0 3 1 1 0 0 0 1 0

Nebraska.......................................... 449 56 446 48 +3 +8 4 0 9 0 0 1 1 0

N evada............................................. 8 96 8 93 N A +3 0 0 2 1 0 0 0 0

New H a m p s h ire ........................... 82 90 78 79 +4 +11 4 1 11 0 1 0 0 0

170 FEDERAL DEPOSIT INSURANCE CORPORATION

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N ew J e rs e y .................................... 222 1,250 211 1,173 +11 +77

N ew M e x ic o ................................. 74 177 72 150 + 2 +27

New Y o r k ...................................... 304 2,879 305 2,699 - 1 +180

N orth C a ro lin a ............................ 90 1,444 87 1,331 +3 +113

N o rth D a k o ta .............................. 170 74 170 73 NA +1

O h io ................................................ 498 1,525 505 1,449 - 7 +76

O k la h o m a ...................................... 452 91 441 84 +11 +7

O re g o n ........................................... 46 401 45 381 + 1 +20

P en n sylva n ia ................................. 422 2,061 437 1,919 - 1 5 +142

Rhode Is la n d ................................. 16 207 16 185 NA +22

South C a ro lin a ............................ 91 548 94 499 - 3 +49

South D a k o ta .............................. 159 108 159 102

0 +6

T e nnessee...................................... 321 658 313 595 +8 +63

Texas .............................................. 1,266 110 1,238 95 +28 +15

U t a h ................................................ 54 171 53 160 +1 +11

V e r m o n t......................................... 39 109 41 98 - 2 +11

V irg in ia ........................................... 271 1,045 256 955 +15 +90

W a sh in g to n .................................... 88 640 90 611 - 2 +29

West V irg in ia ............................... 210 15 203 8 +7 +7

W is c o n s in ...................................... 621 310 613 296 +8 +14

W y o m in g ......................................... 71

2 71

2 NA N A

O th e r Areas

Pacific Is la n d s ............................... 1 27 1 26 N A +1

Panama Canal Zone ..................

0

2 0 2 NA N A

Puerto R ic o .................................... 14 210 14 204 NA +6

V irg in Is la n d s ..............................

8 308 29 NA + 1

N A - N o a c tiv ity 

N C -N o change

17

0 72

76

0

2

0

2

0 27

10

0

1

0

6

0 186

8

7

0 131

7

0 116

44

0

7

0

0

0

100

0

0

0

2

0 699

9

0

2

0

11 0

700

0

0

0

1 0 210

0

0

1

0

0 0 133 16 15

0

6

1

0 0 23

0

0

0

0

1

1

0 46

5

4

0

1

1

1 051

1

0

00

8

0 62

10

0

00

34

0 17151

03

6 0

7

550

10

0 0

922

0

0

0

20

0 87 10

5

0

6

1

3 0 25650

1

1

7 0700

0

00

9 0 141

1

0

10

0 00000

0

0

0 0

1

000

0

0

0 00000

00

0

0

80

00

1

1

0 0

1000

0

0

NUMBER OF BANKS AND BRANCHES

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. N UM BER OF B A N K IN G O FFICES IN THE U N IT E D STATES (STATES A N D O THER A R E A S ), DECEMBER 31, 1973

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

State and typ e o f bank 

or office

A ll banks Commercial banks and nondeposit tru s t companies M utual savings banks Percentage insured1

T otal Insured

N oninsured Total

Insured Noninsured

T otal Insured

N oninsured

banks

of

deposit

m ercial

banks

of

deposit

M utual

savings

banks

Total

Members F.R. 

System

Nonmembers

F.R.

System

Banks 

o f deposit2

Nondeposit

tru st

com ­

panies9 National State

U nited States— all o ffic e s ............... 42,886 4 2,182 704 40,912 40,619 19,627 5,129 15,863 213 80 1,974 1,563 411 98.5 99.5 79.2

B a n k s ............................................. 14,676 14,298 378 14,194 13,976 4,661 1,076 8,239 147 71 482 322 160 97.9 99.0 66.8

U n it b a n k s ........................... 9 ,5 3 7 9 ,2 7 8 2 5 9 9 ,3 9 6 9 ,2 0 2 2 ,7 8 2 5 9 6 5 ,8 2 4 128 6 6 141 7 6 6 5 9 8 .0 9 8 .6 5 3 .9

B a n ks o p e ra tin g b ra n c h e s . 5 ,1 3 9 5,020 11 9 4 ,7 9 8 4 ,7 7 4 1 ,8 7 9 4 8 0 2 ,4 1 5 19 5 3 4 1 2 4 6 9 5 9 7 .8 9 9 .6 7 2 .1

Branches3 ..................................... 28,210 27,884 326 26,718 26,643 14,966 4,053 7,624 66 9 1,492 1,241 251 98.9 99.8 83.2

50 States & D .C .-a ll o f f ic e s ------- 42,593 41,929 664 40,620 40,367 19,567 5,127 15,673 173 80 1,973 1,562 411 98.6 99.6 79.2

Banks ............................................. 14,652 14,285 367 14,171 13,964 4,659 1,076 8,229 136 71 481 321 160 98.0 99.0 66.7

U n it b a n k s ............................ 9 ,5 2 7 9 ,2 7 5 2 5 2 9 ,3 8 7 9 ,2 0 0 2 ,7 8 1 5 9 6 5 ,8 2 3 121 6 6 14 0 7 5 6 5 9 8 .0 9 8 .7 5 3 .6

B a n k s o p e ra tin g b ra n c h e s . 5 ,1 2 5 5 ,0 1 0 1 1 5 4 ,7 8 4 4 ,7 6 4 1,8 7 8 4 8 0 2 ,4 0 6 15 5 3 4 1 2 4 6 9 5 9 7 .9 9 9 .7 72 .1

Branches3 ...................................... 27,941 27,644 297 26,449 26,403 14,908 4,051 7,444 37 9 1,492 1,241 251 99.0 99.9 83.2

O ther A re a s -a ll o ffic e s .................. 293 253 40 292 252 60 2 190 40 0 1 1 0 86.3 86.3 100.0

Banks ............................................. 24 13 11 23 12 2 0 10 11 0 1 1 0 54.2 52.2 100.0

U n it b a n k s ............................ 10 3 7 9 2 1 0 1 7 0 1 7 0 3 0 .0 2 2 .2 1 0 0 .0

B a n k s o p e ra tin g b ra n c h e s . 14 10 4 14 10 1 0 9 4 0 0 0 0 7 1 .4 7 1 .4 0 .0

Branches3 ...................................... 269 240 29 269 240 58 2 180 29 0 0 0 0 89.2 89.2 0.0

State

A la b a m a -a ll o ffic e s ......................... 656 656 0 656 656 340 35 281 0 0 0 0 0 100.0 100.0 0.0

Banks ............................................. 287 287 0 287 287 91 20 176 0 0 0 0 0 100.0 100.0 0.0

U n it b a n k s ............................ 17 7 17 7 0 17 7 17 7 3 9 15 1 2 3 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

B a n ks o p e ra tin g b ra n c h e s . 1 1 0 11 0 0 11 0 11 0 5 2 5 5 3 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

B ranches........................................ 369 369 0 369 369 249 15 105 0 0 0 0 0 100.0 100.0 0.0

A la s k a -a ll o ffic e s ............................ 85 85 0 83 83 70 0 13 0 0 2 2 0 100.0 100.0 100.0

Banks ............................................. 12 12 0 10 10 5 0 5 0 0 2 2 0 100.0 100.0 100.0

U n it b a n k s ............................ 4 4 0 2 2 0 0 2 0 0 2 2 0 1 0 0 .0 1 0 0 .0 1 0 0 .0

B a nks o p e ra tin g b ra n c h e s . 8 8 0 8 8 5 0 3 0 0 0 0 0 10 0 .0 1 0 0 .0 0 .0

Branches........................................ 73 73 0 73 73 65 0 8 0 0 0 0 0 100.0 100.0 0.0

A riz o n a -a ll o ffic e s ......................... 427 42 0 7 427 420 258 26 136 0 7 0 0 0 100.0 100.0 0.0

Banks ............................................. 22 15 7 22 15 3 1 11 0 7 0 0 0 100.0 100.0 0.0

U n it b a n k s ............................ 12 5 7 12 5 1 0 4 0 7 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

B a n k s o p e ra tin g b r a n c h e s . 10 10 0 10 10 2 1 7 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

Branches........................................ 405 405 0 405 405 255 25 125 0 0 0 0 0 100.0 100.0 0.0

172 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
A rka n sa s-a ll o ffic e s .......................... 485 481 4 485 481 189 27

Banks .............................................. 258 254 4 258 254 72 11

U n it b a n k s ............................ 1 4 9 1 4 5 4 14 9 14 5 2 6 3

B a n k s o p e ra tin g b ra n c h e s . 10 9 10 9 0 10 9 109 4 6 8

Branches......................................... 227 1 1 1 0 1 1 1 12 1 117 16

C a lifo rn ia -a ll o ffic e s ....................... 3,576 3,559 17 3,576 3,559 2,690 322

Banks .............................................. 185 174 11 185 174 57 8

U n it b a n k s ............................ 5 6 4 8 8 5 6 4 8 9 0

B a n k s o p e ra tin g b ra n c h e s . 12 9 1 2 6 3 12 9 12 6 4 8 8

Branches......................................... 3,391 3,3 8 5 6 3,391 3,385 2,633 314

C o lo ra d o -a ll o f f ic e s ....................... 344 297 47 344 297 147 20

Banks .............................................. 302 255 47 302 255 126 17

U n it b a n k s ............................ 2 6 4 2 1 7 4 7 2 6 4 2 1 7 106 15

B a n k s o p e ra tin g b ra n c h e s . 3 8 3 8 0 3 8 3 8 2 0 2

Branches ...................................... 42 42 0 42 42 21 3

C o n n e c tic u t-a ll o ffic e s .................. 853 852 1 586 585 267 75

Banks .............................................. 136 135 1 68 67 24 2

U n it b a n k s ............................... 3 8 3 7 1 2 0 19 6 1

B a n k s o p e ra tin g b ra n c h e s . 9 8 9 8 0 4 8 4 8 18 1

B ranches......................................... 717 717 0 518 518 243 73

D e la w a re -a ll o f f ic e s ....................... 158 157 1 137 136 9 0

Banks .............................................. 21 20 1 19 18 5 0

U n it b a n k s ............................ 10 9 1 10 9 3 0

B a n k s o p e r a tin g b ra n c h e s . 11 11 0 9 9 2 0

Branches......................................... 137 137 0 118 118 4 0

D .C .-a ll o f f i c e s .............................. 132 132 0 132 132 91 30

Banks .............................................. 15 15 0 15 15 12 1

U n it b a n k s ............................ 1 1 0 7 1 1 0

B a n k s o p e ra tin g b ra n c h e s . 14 14 0 14 14 11 1

Branches......................................... 117 117 0 117 117 79 29

F lo rid a -a ll o ffic e s ............................ 713 709 4 713 709 273 23

Banks .............................................. 646 642 4 646 642 262 22

U n it b a n k s ............................ 5 8 4 5 8 0 4 5 8 4 5 8 0 2 5 2 2 1

B a n k s o p e ra tin g b ra n c h e s . 6 2 6 2 0 6 2 6 2 10 1

Branches......................................... 67 67 0 67 67 11 1

G e o rg ia -a ll o ffic e s ............................ 994 990 4 994 990 351 80

Banks .............................................. 436 432 4 436 432 61 11

U n it b a n k s ............................ 2 5 7 2 5 3 4 2 5 7 2 5 3 15 2

B a n k s o p e ra tin g b ra n c h e s . 1 7 9 1 7 9 0 17 9 17 9 4 6 9

B ranches......................................... 558 558 0 558 558 290 69

H a w a ii-a ll o ffic e s ............................ 162 155 7 162 155 12 0

B a n k s .............................................. 12 8 4 12 8 2 0

U n it b a n k s ....................... 3 7 2 3 1 1 0

B a n k s o p e ra tin g b ra n c h e s . 9 7 2 9 7 1 0

B ranches..........-............................. 150 147 3 150 147 10 0

265 1 3 0 0 0 99.8 99.8 0.0

171 1 3 0 0 0 99.6 99.6 0.0

1 1 6 1 3 0 0 0 9 9 .3 9 9 .3 0 .0

5 5 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

94 0 0 0 0 0 100.0 100.0 0.0

547 0 17 0 0 0 100.0 100.0 0.0

109 0 11 0 0 0 100.0 100.0 0.0

3 9 0 8 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

7 0 0 3 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

438 0 6 0 0 0 100.0 100.0 0.0

130 47 0 0 0 0 86.3 86.3 0.0

112 47 0 0 0 0 84.4 84.4 0.0

9 6 4 7 0 0 0 0 8 2 .2 8 2 .2 0 .0

16 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

18 0 0 0 0 0 100.0 100.0 0.0

243 1 0 267 267 0 99.9 99.8 100.0

41 1 0 68 68 0 99.3 98.5 100.0

12 1 0 18 18 0 9 7 .4 9 5 .0 1 0 0 .0

2 9 0 0 5 0 5 0 0 1 0 0 .0 1 0 0.0 1 0 0 .0

202 0 0 199 199 0 100.0 100.0 100.0

127 0 1 21 21 0 100.0 100.0 100.0

13 0 1 2 2 0 100.0 100.0 100.0

6 0 1 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

7 0 0 2 2 0 1 0 0 .0 1 0 0 .0 1 0 0 .0

114 0 0 19 19 0 100.0 100.0 100.0

11 0 0 0 0 0 100.0 100.0 0.0

2 0 0 0 0 0 100.0 100.0 0.0

0 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

2 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

9 0 0 0 0 0 100.0 100.0 0.0

413 1 3 0 0 0 99.9 99.9 0.0

358 1 3 0 0 0 99.8 99.8 0.0

3 0 7 1 3 0 0 0 9 9 .8 9 9 .8 0 .0

5 1 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

55 0 0 0 0 0 100.0 100.0 0.0

559 4 0 0 0 0 99.6 99.6 0.0

360 4 0 0 0 0 99.1 99.1 0.0

2 3 6 4 0 0 0 0 9 8 .4 9 8 .4 0 .0

12 4 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

199 0 0 0 0 0 100.0 100.0 0.0

143 0 7 0 0 0 100.0 100.0 0.0

6 0 4 0 0 0 100.0 100.0 0.0

0 0 2 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

6 0 2 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

137 0 3 0 0 0 100.0 100.0 0.0

NUMBER OF BANKS AND BRANCHES 173

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, 1 9 7 3 -C O N T IN U E D

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

State and typ e o f bank 

o r o ffice

A ll banks Com m ercial banks and nondeposit tru s t companies M utual savings banks Percentage insured1

T otal Insured

N oninsured T otal

Insured N oninsured

T otal

I

Insured

r

N oninsured

A ll

banks

o f

depo sit

C om ­

m ercial

banks

o f

deposit

M utual

savings

banks

T otal

Members F.R. 

System

N o n ­

m em ­

bers

F.R.

System

Banks 

of dep o sit2

N ondeposit

tru s t

com ­

panies9

National State

Id a h o -a ll o ffic e s ............................... 203 203 0 203 203 154 10 39 0 0 0 0 0 100.0 100.0 0.0

Banks .............................................. 24 24 0 24 24 6 4 14 0 0 0 0 0 100.0 100.0 0.0

. U n it b a n k s ............................ 1 0 10 0 10 10 1 2 7 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

B a n k s o p e r a tin g b ra n c h e s . 14 14 0 14 14 5 2 7 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

B ra n c h e s ....................................... 179 179 0 179 179 148 6 25 0 0 0 0 0 100.0 100.0 0.0

I llin o is - a ll o ffic e s ............................ 1,347 1,340 7 1,347 1,340 510 84 746 2 5 0 0 0 99.9 99.9 0.0

B a n k s .............................................. 1,172 1,165 7 1,172 1,165 417 74 674 2 5 0 0 0 99.8 99.8 0.0

U n it b a n k s ............................ 1 ,0 0 1 9 9 4 7 1 ,0 0 1 9 9 4 3 2 7 6 4 6 0 3 2 5 0 0 0 9 9 .8 9 9 .8 0 .0

B a n k s o p e r a tin g b ra n c h e s . 17 1 171 0 171 171 9 0 10 7 1 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

B ranches......................................... 175 175 0 175 175 93 10 72 0 0 0 0 0 100.0 100.0 0.0

In d ia n a -a ll o ffic e s ............................ 1,192 1,189 3 1,187 1,184 530 118 536 2 1 5 5 0 99.8 99.8 100.0

B a n k s .............................................. 41 4 411 3 410 407 122 56 229 2 1 4 4 0 99.5 99.5 100.0

U n it b a n k s ............................ 1 9 6 19 3 3 19 3 19 0 4 1 3 2 1 1 7 2 7 3 3 0 9 9 .0 9 9 .0 1 0 0 .0

B a n k s o p e r a tin g b ra n c h e s . 2 1 8 2 1 8 0 2 1 7 2 1 7 8 1 2 4 11 2 0 0 1 1 0 1 0 0 .0 1 0 0 .0 1 0 0 .0

Branches......................................... 778 778 0 1 1 1 1 1 1 408 62 307 0 0 1 1 0 100.0 100.0 100.0

Io w a -a ll office s .............................. 1,039 1,030 9 1,039 1,030 170 87 773 7 2 0 0 0 99.3 9 9.3 0.0

Banks .............................................. 670 661 9 670 661 100 48 513 7 2 0 0 0 99.0 99.0 0.0

U n it b a n k s ............................ 4 3 1 4 2 2 9 4 3 1 4 2 2 5 6 2 7 3 3 9 7 2 0 0 0 9 8 .4 9 8 .4 0 .0

B a n k s o p e r a tin g b ra n c h e s . 2 3 9 2 3 9 0 2 3 9 2 3 9 4 4 2 1 17 4 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

Branches ...................................... 369 369 0 369 369 1 0 39 260 0 0 0 0 0 100.0 100.0 0.0

K ansas-all o ffic e s ............................ 701 700 1 701 700 211 34 455 1 0 0 0 0 99.9 99.9 0.0

Banks .............................................. 612 611 1 612 611 170 26 415 1 0 0 0 0 99.8 99.8 0.0

U n it b a n k s ............................ 5 3 2 5 3 1 1 5 3 2 5 3 1 1 3 6 2 0 3 7 5 1 0 0 0 0 9 9 .8 9 9 .8 0 .0

B a n k s o p e r a tin g b ra n c h e s . 8 0 8 0 0 8 0 8 0 3 4 6 4 0 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

B ranches......................................... 89 89 0 89 89 41 8 40 0 0 0 0 0 100.0 100.0 0.0

K e n tu c k y -a ll o ffic e s ....................... 766 765 1 766 765 257 81 427 1 0 0 0 0 99.9 99.9 0.0

B a n k s .............................................. 342 341 1 342 341 80 11 250 1 0 0 0 0 99.7 99.7 0.0

U n it b a n k s ............................ 1 8 6 1 8 5 7 18 6 18 5 3 1 4 15 0 7 0 0 0 0 9 9 .5 9 9 .5 0 .0

B a n k s o p e r a tin g b r a n c h e s . 1 5 6 1 5 6 0 15 6 1 5 6 4 9 7 1 0 0 O 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

B ranches......................................... 4 2 4 424 0 424 424 177 70 177 0 0 0 0 0 1Q0.U | 100.0 0.0

174 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
L o u is ia n a -a ll o ffic e s ....................... 735 734 1 735 734 266 49

Banks ............................................. 245 244 1 245 244 51 10

U n it b a n k s ............................... 10 1 1 0 0 1 101 10 0 12 7

B a n ks o p e ra tin g b ra n c h e s . 14 4 1 4 4 0 144 144 3 9 9

Branches......................................... 4 9 0 4 9 0 0 490 490 215 39

M a in e -a ll o ffic e s .............................. 379 374 5 308 304 137 37

Banks .............................................. 80 75 5 48 44 19 4

U n it b a n k s ............................... 2 4 19 5 13 9 3 0

B a n k s o p e ra tin g b ra n c h e s . 5 6 5 6 0 3 5 3 5 16 4

B ranches......................................... 299 299 0 260 260 118 33

M a ry la n d -a ll o ffic e s ....................... 806 806 0 755 755 346 87

Banks .............................................. 116 116 0 112 112 39 7

U n it b a n k s ............................ 3 6 3 6 0 3 6 3 6 8 7

B a n k s o p e r a tin g b ra n c h e s . 8 0 8 0 0 7 6 7 6 3 1 6

Branches......................................... 690 690 0 643 643 307 80

M assachusetts-all o ffic e s ................ 1,466 1,047 419 1,006 997 552 172

Banks .............................................. 320 156 164 153 148 79 13

U n it b a n k s ............................ 9 2 2 5 6 7 2 8 2 5 14 0

B a n k s o p e ra tin g b ra n c h e s . 2 2 8 131 9 7 1 2 5 12 3 6 5 13

Branches3 ...................................... 1,146 891 255 853 849 473 159

M ic h ig a n -a ll o ffic e s .......................... 1,740 1,736 4 1,740 1,736 769 573

B a n k s ...................................... .. 340 338 2 340 338 111 95

U n it b a n k s ............................ 1 0 7 1 0 6 7 1 0 7 10 6 2 6 2 7

B a n k s o p e r a tin g b ra n c h e s . 2 3 3 2 3 2 7 2 3 3 2 3 2 8 5 6 8

B ranches......................................... 1,400 1,398 2 1,400 1,398 658 478

M in n e s o ta -a ll o ffic e s ....................... 766 763 3 764 761 212 27

Banks .............................................. 741 738 3 740 737 201 25

U n it b a n k s ............................... 7 1 9 7 1 6 3 7 1 9 7 1 6 1 9 3 2 3

B a n k s o p e r a tin g b ra n c h e s . 2 2 2 2 0 2 1 2 1 8 2

B ranches......................................... 25 25 0 24 24 11 2

M is s is s ip p i-a ll o f f ic e s ..................... 630 630 0 630 630 224 25

Banks .............................................. 181 181 0 181 181 41 7

U n it b a n k s ............................ 5 3 5 3 0 5 3 5 3 5 7

B a n k s o p e ra tin g b ra n c h e s . 1 2 8 1 2 8 0 1 2 8 12 8 3 6 6

Branches ...................................... 4 49 449 0 449 449 183 18

M is s o u ri-a ll o ffic e s .......................... 890 884 6 890 884 151 93

Banks .............................................. 687 681 6 687 681 104 67

U n it b a n k s ............................... 5 0 3 4 9 7 6 5 0 3 4 9 7 6 4 4 6

B a n k s o p e ra tin g b ra n c h e s . 1 8 4 1 8 4 0 18 4 18 4 4 0 2 1

Branches ...................................... 203 203 0 203 203 47 26

M o n ta n a -a ll o ffic e s .......................... 163 161 2 163 161 58 49

B a n k s .............................................. 151 149 2 151 149 54 44

U n it b a n k s ............................ 13 8 1 3 6 2 1 3 8 13 6 5 0 3 9

B a n k s o p e ra tin g b ra n c h e s . 13 13 0 13 13 4 5

Branches......................................... 12 12 0 12 12 4 5

419 1 0 0 0 0 99.9 99.9 0.0

183 1 0 0 0 0 99.6 99.6 0.0

8 7 1 0 0 0 0 9 9 .0 9 9 .0 0 .0

9 6 0 0 0 0 0 1 0 0.0 10 0.0 0 .0

236 0 0 0 0 0 100.0 100.0 0.0

130 4 0 71 70 1 98.7 98.7 98.6

21 4 0 32 31 1 93.8 91.7 96.9

6 4 0 11 10 7 7 9 .2 6 9 .2 9 0 .9

15 0 0 2 1 2 1 0 1 0 0 .0 10 0 .0 10 0.0

109 0 0 39 39 0 100.0 100.0 100.0

322 0 0 51 51 0 100.0 100.0 100.0

66 0 0 4 4 0 100.0 100.0 100.0

2 7 0 0 0 0 0 1 0 0 .0 10 0.0 0 .0

3 9 0 0 4 4 0 1 0 0 .0 10 0.0 1 0 0.0

256 0 0 47 47 0 100.0 100.0 100.0

273 9 0 460 50 410 71.4 99.1 10.9

56 5 0 167 8 159 48.8 96.7 4.8

77 3 0 6 4 0 6 4 2 7 .2 8 9 .3 0 .0

4 5 2 0 10 3 8 9 5 5 7 .5 9 8 .4 7 .8

217 4 0 293 42 251 1 1 .1 99.5 14.3

394 3 1 0 0 0 99.8 99.8 0.0

132 1 1 0 0 0 99.7 99.7 0.0

5 3 0 7 0 0 0 1 0 0 .0 10 0 .0 0 .0

7 9 1 0 0 0 0 9 9 .6 9 9 .6 0 .0

262 2 0 0 0 0 99.9 99.9 0.0

522 3 0 2 2 0 99.6 99.6 100.0

511 3 0 1 1 0 99.6 99.6 100.0

5 0 0 3 0 0 0 0 9 9 .6 9 9 .6 0 .0

11 0 0 1 1 0 1 0 0 .0 10 0 .0 10 0 .0

11 0 0 1 1 0 100.0 100.0 100.0

381 0 0 0 0 0 100.0 100.0 0.0

133 0 0 0 0 0 100.0 100.0 0.0

4 7 0 0 0 0 0 1 0 0 .0 10 0 .0 0 .0

8 6 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

248 0 0 0 0 0 100.0 100.0 0.0

640 2 4 0 0 0 99.8 99.8 0.0

510 2 4 0 0 0 99.7 99.7 0.0

3 8 7 2 4 0 0 0 9 9 .6 9 9 .6 0 .0

12 3 0 0 0 0 0 1 0 0 .0 10 0 .0 0 .0

130 0 0 0 0 0 100.0 100.0 0.0

54 0 2 0 0 0 100.0 100.0 0.0

51 0 2 0 0 0 100.0 100.0 0.0

4 7 0 2 0 0 0 1 0 0 .0 10 0 .0 0 .0

4 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

3 0 0 0 0 0 100.0 100.0 0.0

NUMBER OF BANKS AND BRANCHES 175

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, 1 9 7 3 -C O N T IN U E D

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

State and ty p e o f bank 

or o ffice

A ll banks Commercial banks and nondeposit tru s t companies M utual savings banks Percentage insured1

T otal Insured

N oninsured T otal

Insured IMonmsurea

T o ta l

I

Insured

I

N oninsured

A ll

banks

of

dep o sit

I

C om ­

m ercial

banks

of

deposit

I

M utual

savings

banks

Total

Members F.R. 

System

N o n ­

m em ­

bers

F.R.

System

Banks 

o f dep o sit2

N ondeposit

tru s t

com ­

panies9 National State

N e b ra ska -a ll o f f ic e s ....................... 505 500 5 505 500 155 10 335 0 5 0 0 0 100.0 100.0 0.0

Banks ............................................. 449 444 5 449 444 122 9 313 0 5 0 0 0 100.0 100.0 0.0

U n it b a n k s ............................ 4 0 0 3 9 5 5 4 0 0 3 9 5 9 4 8 2 9 3 0 5 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

B a n k s o p e ra tin g b ra n c h e s . 4 9 4 9 0 4 9 4 9 2 8 1 2 0 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

B ranches......................................... 56 56 0 56 56 33 1 22 0 0 0 0 0 100.0 100.0 0.0

N e v a d a -a ll o ffic e s ............................ 104 104 0 104 104 72 16 16 0 0 0 0 0 100.0 100.0 0.0

Banks ............................................. 8 8 0 8 8 4 1 3 0 0 0 0 0 100.0 100.0 0.0

U n it b a n k s ............................ 1 1 0 1 1 1 0 0 0 0 0 0 0 1 0 0 .0 10 0 .0 0 .0

B a n k s o p e ra tin g b ra n c h e s . 7 7 0 7 7 3 1 3 0 0 0 0 0 1 0 0 .0 10 0 .0 0 .0

Branches......................................... 96 96 0 96 96 68 15 13 0 0 0 0 0 100.0 100.0 0.0

New H a m p s h ire -a ll o ffic e s .......... 222 220 2 172 170 122 3 45 1 1 50 50 0 99.5 99.4 100.0

Banks .............................................. 112 110 2 82 80 49 1 30 1 1 30 30 0 99.1 98.8 100.0

U n it b a n k s ............................ 6 0 5 8 2 4 0 3 8 19 0 19 1 1 2 0 2 0 0 9 8 .3 9 7 .4 1 0 0 .0

B a n k s o p e ra tin g b ra n c h e s . 5 2 5 2 0 4 2 4 2 3 0 1 11 0 0 10 10 0 1 0 0 .0 1 0 0 .0 1 0 0 .0

B ranches......................................... 110 110 0 90 90 73 2 15 0 0 20 20 0 100.0 100.0 100.0

N ew J e rs e y -a ll o ffic e s ..................... 1,563 1,562 1 1,472 1,471 988 234 249 0 1 91 91 0 100.0 100.0 100.0

B a n k s .............................................. 242 241 1 222 221 127 27 67 0 1 20 20 0 100.0 100.0 100.0

U n it b a n k s ............................ 5 3 5 2 1 4 8 4 7 2 2 3 2 2 0 1 5 5 0 1 0 0 .0 1 0 0 .0 1 0 0 .0

B a n k s o p e ra tin g b ra n c h e s . 18 9 18 9 0 174 174 1 0 5 2 4 4 5 0 0 15 15 0 1 0 0 .0 1 0 0 .0 1 0 0 .0

B ranches......................................... 1,321 1,321 0 1,250 1,250 861 207 182 0 0 71 71 0 100.0 100.0 100.0

N ew M e x ic o -a ll o ffic e s .................. 251 250 1 251 250 130 20 100 0 1 0 0 0 100.0 100.0 0.0

B a n k s .............................................. 74 73 1 74 73 34 7 32 0 1 0 0 0 100.0 100.0 0.0

U n it b a n k s ............................ 15 14 1 15 14 5 2 7 0 1 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

B a n k s o p e ra tin g b ra n c h e s . 5 9 5 9 0 5 9 5 9 2 9 5 2 5 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

Branches......................................... 177 177 0 177 177 96 13 68 0 0 0 0 0 100.0 100.0 0.0

N ew Y o r k - a ll o ffic e s ....................... 3,802 3,765 37 3,183 3,146 1,682 1,252 212 33 4 619 619 0 99.1 99.0 100.0

Banks .............................................. 422 394 28 304 276 159 71 46 24 4 118 118 0 94.3 92.0 100.0

U n it b a n k s ............................ 1 1 5 9 3 2 2 1 0 5 8 3 5 1 15 1 7 18 4 10 10 0 8 3 .8 8 2 .2 1 0 0 .0

B a n k s o p e ra tin g b ra n c h e s . 3 0 7 3 0 1 6 19 9 19 3 10 8 56 2 9 6 0 108 1 0 8 0 9 8 .0 9 7 .0 1 0 0 .0

Branches3 .................................... 3 ,380 3,371 9 2,879 2,870 1,523 1,181 166 9 0 501 501 0 99.7 99.7 100.0

176 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
N o rth C a ro lin a -a ll o ffic e s ............. 1,534 1,524 10 1,534 1,524 752 3

Banks .............................................. 90 89 1 90 89 25 3

U n it b a n k s ............................ 2 5 2 5 0 2 5 2 5 3 3

B a n k s o p e ra tin g b ra n c h e s . 6 5 6 4 1 6 5 6 4 2 2 0

Branches ...................................... 1,444 1,435 9 1,444 1,435 727 0

N o rth D a k o ta -a ll o ffic e s ................ 244 239 5 244 239 57 6

B a n k s .............................................. 170 167 3 170 167 43 4

U n it b a n k s ............................ 1 1 5 1 1 3 2 11 5 11 3 2 9 3

B a n k s o p e ra tin g b ra n c h e s . 5 5 5 4 1 5 5 5 4 14 1

Branches ...................................... 74 72 2 74 1 2 14 2

O h io -a ll offices ............................... 2,023 2,021 2 2,023 2,021 1,075 532

B a n k s .............................................. 498 496 2 498 496 215 114

U n it b a n k s ............................ 1 8 6 18 4 2 18 6 184 5 5 4 9

B a n k s o p e r a tin g b ra n c h e s . 3 1 2 3 1 2 0 3 1 2 3 1 2 16 0 6 5

Branches ...................................... 1,525 1,525 0 1,525 1,525 860 418

O k la h o m a -a ll o ffic e s ....................... 543 538 5 543 538 249 18

Banks .............................................. 4 5 2 447 5 452 447 194 15

U n it b a n k s ............................ 3 6 4 3 5 9 5 3 6 4 3 5 9 14 2 12

B a n k s o p e r a tin g b ra n c h e s . 8 8 8 8 0 8 8 8 8 5 2 3

Branches ...................................... 91 91 0 91 91 55 3

O re g o n -a ll o ffic e s ............................ 452 450 2 447 445 290 0

Banks .............................................. 47 45 2 46 44 8 0

U n it b a n k s ............................... 16 14 2 16 14 1 0

B a n k s o p e r a tin g b ra n c h e s . 3 1 3 1 0 3 0 3 0 7 0

Branches3 ...................................... 4 0 5 405 0 401 401 282 0

P e n n sylva nia -a ll o f f ic e s ............... 2,619 2,610 9 2,483 2,474 1,473 279

B a n k s .............................................. 43 0 42 3 7 422 415 264 16

U n it b a n k s ............................ 1 6 5 15 9 6 164 158 1 0 7 6

B a n k s o p e r a tin g b ra n c h e s . 2 6 5 2 6 4 1 2 5 8 2 5 7 1 5 7 10

Branches3 .................................... 2,189 2,187 2 2,061 2,059 1,209 263

R hode Is la n d -a ll o ffic e s ................ 316 306 10 223 213 119 0

B a n k s .............................................. 23 21 2 16 14 5 0

U n it b a n k s ............................ 3 3 0 3 3 0 0

B a n k s o p e r a tin g b ra n c h e s . 2 0 18 2 13 11 5 0

Branches ...................................... 293 285 8 207 199 114 0

South C a ro lin a -a ll o ffic e s ............. 639 639 0 639 639 366 14

Banks .............................................. 91 91 0 91 91 19 5

U n it b a n k s ............................ 2 8 2 8 0 2 8 2 8 3 2

B a n k s o p e ra tin g b ra n c h e s . 6 3 6 3 0 6 3 6 3 16 3

Branches ...................................... 548 548 0 548 548 347 9

S outh D a k o ta -a ll o ffic e s ................ 267 267 0 267 267 97 39

B a n k s .............................................. 159 159 0 159 159 32 28

U n it b a n k s ............................ 1 1 7 1 1 7 0 11 7 11 7 2 2 2 0

B a n k s o p e ra tin g b ra n c h e s . 4 2 4 2 0 4 2 4 2 1 0 8

Branches ...................................... 108 108 0 108 108 65 11

769 10 0 0 0 0 99.3 99.3 0.0

61 1 0 0 0 0 98.9 98.9 0.0

19 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

4 2 1 0 0 0 0 9 8 .5 9 8 .5 0 .0

708 9 0 0 0 0 99.4 99.4 0.0

176 5 0 0 0 0 98.0 98.0 0.0

120 3 0 0 0 0 98.2 98.2 0.0

8 1 2 0 0 0 0 9 8 .3 9 8 .3 0 .0

3 9 1 0 0 0 0 9 8 .2 9 8 .2 0 .0

56 2 0 0 0 0 97.3 97.3 0.0

414 2 0 0 0 0 99.9 99.9 0.0

167 2 0 0 0 0 99.6 99.6 0.0

8 0 2 0 0 0 0 9 8 .9 9 8 .9 0 .0

8 7 0 0 0 0 0 1 0 0 .0 1 0 0.0 0 .0

247 0 0 0 0 0 100.0 100.0 0.0

271 1 4 0 0 0 99.8 99.8 0.0

238 1 4 0 0 0 99.8 99.8 0.0

2 0 5 1 4 0 0 0 9 9 .7 9 9 .7 0 .0

3 3 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

33 0 0 0 0 0 100.0 100.0 0.0

155 2 0 5 5 0 99.6 99.6 100.0

36 2 0 1 1 0 95.7 95.7 100.0

13 2 0 0 0 0 8 7 .5 8 7 .5 0 .0

2 3 0 0 1 1 0 1 0 0 .0 10 0.0 1 0 0 .0

119 0 0 4 4 0 100.0 100.0 100.0

722 7 2 136 136 0 99.7 99.7 100.0

135 5 2 8 8 0 98.8 98.8 100.0

4 5 4 2 1 1 0 9 7 .5 9 7 .5 1 0 0 .0

9 0 1 0 7 7 0 9 9 .6 9 9 .6 1 0 0 .0

587 2 0 128 128 0 99.9 99.9 100.0

94 10 0 93 93 0 96.8 95.5 100.0

9 2 0 7 7 0 91.3 87.5 100.0

3 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

6 2 0 7 7 0 9 0 .0 8 4 .6 1 0 0 .0

85 8 0 86 86 0 97.3 96.1 100.0

259 0 0 0 0 0 100.0 100.0 0.0

67 0 0 0 0 0 100.0 100.0 0.0

2 3 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

4 4 0 0 0 0 0 1 0 0 .0 1 0 0.0 0 .0

192 0 0 0 0 0 100.0 100.0 0.0

131 0 0 0 0 0 100.0 100.0 0.0

99 0 0 0 0 0 100.0 100.0 0.0

7 5 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

2 4 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

32 0 0 0 0 0 100.0 100.0 0.0

NUMBER OF BANKS AND BRANCHES 177

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, 1 9 7 3 -C O N T IN U E D

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

State and typ e o f bank 

or o ffice

A ll banks Commercial banks and nondeposit tru s t com panies M utual savings banks Percentage insured1

T o ta l Insured

N o n ­

insured T o ta l

Insured N oninsured

T otal Insured

N o n ­

insured

A ll

banks

o f

deposit

C om ­

m ercial

banks

o f

deposit

M utual

savings

banks

T otal

Members F.R. 

System

N onm em ­

bers

F.R.

System

Banks 

o f dep o s it2

N ondeposit

tru s t

com ­

panies9 National State

T ennessee-all o ffic e s ....................... 979 974 5 979 974 402 53 519 4 1 0 0 0 99.6 99.6 0.0

Banks .............................................. 321 317 4 321 317 72 10 235 3 1 0 0 0 99.1 99.1 0.0

U n it b a n k s ............................... 1 3 7 13 4 3 1 3 7 13 4 13 4 1 1 7 2 1 0 0 0 9 8 .5 9 8 .5 0 .0

B a n k s o p e r a tin g b ra n c h e s . 1 8 4 1 8 3 1 18 4 183 5 9 6 11 8 1 O 0 0 0 9 9 .5 9 9 .5 0 .0

B ranches......................................... 658 657 1 658 657 330 43 284 1 0 0 0 0 99.8 99.8 0.0

T e x a s -a ll o ffic e s ............................... 1,376 1,369 7 1,376 1,369 570 49 750 7 0 0 0 0 99.5 99.5 0.0

Banks .............................................. 1,266 1,259 7 1,266 1,259 550 40 669 7 0 0 0 0 99.4 99.4 0.0

U n it b a n k s ............................... 1 ,1 6 7 1 ,1 6 0 7 1 ,1 6 7 1 ,1 6 0 5 3 2 3 2 5 9 6 7 0 0 0 0 9 9 .4 9 9 .4 0 .0

B a n k s o p e r a tin g b ra n c h e s . 9 9 9 9 0 9 9 9 9 18 8 73 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

Branches......................................... 110 110 0 110 110 20 9 81 0 0 0 0 0 100.0 100.0 0.0

U ta h -a ll o ffices ............................... 2 25 22 4 1 225 224 103 36 85 0 1 0 0 0 100.0 100.0 0.0

B a n k s .............................................. 54 53 1 54 53 11 5 37 0 1 0 0 0 100.0 100.0 0.0

U n it b a n k s ............................... 3 4 3 3 1 3 4 3 3 6 2 2 5 0 7 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

B a n k s o p e r a tin g b ra n c h e s . 2 0 2 0 O 2 0 2 0 5 3 12 0 O 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

Branches......................................... 171 171 0 171 171 92 31 48 0 0 0 0 0 100.0 100.0 0.0

V e rm o n t-a ll o ffic e s .......................... 159 158 1 148 147 65 0 82 0 1 11 11 0 100.0 100.0 100.0

Banks .............................................. 45 44 1 39 38 22 0 16 0 1 6 6 0 100.0 100.0 100.0

U n it b a n k s ............................... 16 1 5 1 13 12 9 0 3 0 1 3 3 0 1 0 0 .0 1 0 0 .0 1 0 0 .0

B a n k s o p e r a tin g b ra n c h e s . 2 9 2 9 0 2 6 2 6 13 0 13 0 0 3 3 0 1 0 0 .0 1 0 0 .0 1 0 0 .0

Branches......................................... 114 114 0 109 109 43 0 66 0 0 5 5 0 100.0 100.0 100.0

V irg in ia -a ll o f f ic e s .......................... 1,316 1,316 0 1,316 1,316 689 261 366 0 0 0 0 0 100.0 100.0 0.0

Banks .............................................. 271 271 0 271 271 103 54 114 0 0 0 0 0 100.0 100.0 0.0

U n it b a n k s ............................ 8 8 8 8 0 8 8 8 8 1 7 2 3 4 8 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

B a n k s o p e r a tin g b ra n c h e s . 1 8 3 1 8 3 0 18 3 18 3 8 6 3 1 6 6 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

Branches......................................... 1,045 1,045 0 1,045 1,045 586 207 252 0 0 0 0 0 100.0 100.0 0.0

W a sh in g to n -a ll o f f ic e s .................. 814 811 3 728 725 522 39 164 2 1 86 86 0 99.8 99.7 100.0

Banks .............................................. 96 93 3 88 85 24 5 56 2 1 8 8 0 97.9 97.7 100.0

U n it b a n k s ............................ 3 8 3 5 3 3 8 3 5 7 2 2 6 2 1 0 0 0 9 4 .6 9 4 .6 0 .0

B a n k s o p e r a tin g b ra n c h e s . 5 8 5 8 0 5 0 5 0 17 3 3 0 0 0 8 8 0 1 0 0 .0 1 0 0 .0 1 0 0 .0

Branches3 ...................................... 718 718 0 640 640 498 34 108 0 0 78 78 0 100.0 100.0 100.0

178 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
West V irg in ia -a ll o ffic e s ............... 225 225 0 225 225 97 32

Banks .............................................. 210 210 0 210 210 94 30

U n it b a n k s ............................... 1 9 5 1 9 5 0 19 5 1 9 5 9 1 2 8

B a n k s o p e r a tin g b ra n c h e s . 1 5 15 0 15 15 3 2

B ranches......................................... 15 15 0 15 15 3 2

W is c o n s in -a ll o ffic e s ....................... 934 929 5 931 926 205 54

Banks .............................................. 624 619 5 621 616 127 34

U n it b a n k s ............................... 4 3 6 4 3 1 5 4 3 3 4 2 8 8 5 2 5

B a n k s o p e r a tin g b ra n c h e s . 1 8 8 1 8 8 0 18 8 18 8 4 2 9

Branches......................................... 31 0 310 0 310 310 78 20

W y o m in g -a ll o ffic e s ....................... 73 73 0 73 73 43 13

Banks .............................................. 71 71 0 71 71 42 13

U n it b a n k s ............................ 6 9 6 9 0 6 9 6 9 4 1 13

B a n k s o p e r a tin g b ra n c h e s . 2 2 0 2 2 1 0

B ranches......................................... 2 2 0 2 2 1 0

O th e r Areas

P acific ls.<— all o ffices4 ..................... 28 16 12 28 16 9 0

Banks .............................................. 1 1 0 1 1 0 0

U n it b a n k s ............................ 1 1 0 1 1 0 0

B a n k s o p e ra tin g b ra n c h e s . 0 0 0 0 0 0 0

Branches5 ...................................... 27 15 12 21 15 9 0

Canal Z o n e -a ll o ffic e s ..................... 2 0 2 2 0 0 0

Banks .............................................. 0 0 0 0 0 0 0

U n it b a n k s ............................ 0 0 0 0 0 0 0

B a n k s o p e r a tin g b ra n c h e s . 0 0 0 0 0 0 0

Branches6 ...................................... 2 0 2 2 0 0 0

Puerto R ic o -a ll o ffic e s .................. 22 5 205 20 224 204 23 0

B a n k s .............................................. 15 10 5 14 9 1 0

U n it b a n k s ............................... 3 2 1 2 1 7 0

B a n k s o p e r a tin g b ra n c h e s . 1 2 8 4 12 8 0 0

Branches7 .................................... 210 195 15 210 195 2 2 0

V irg in Islands— all o ffic e s ............... 38 32 6 38 32 28 2

Banks .............................................. 8 2 6 8 2 1 0

U n it b a n k s ............................ 6 0 6 6 0 0 0

B a n k s o p e r a tin g b ra n c h e s . 2 2 0 2 2 1 0

Branches8 .................................... 30 30 0 30 30 27 2

96 0 0 0 0 0 100.0 100.0 0.0

86 0 0 0 0 0 100.0 100.0 0.0

7 6 0 0 0 0 0 1 0 0 .0 1 0 0.0 0 .0

10 0 0 0 0 0 1 0 0 .0 1 0 0.0 0 .0

10 0 0 0 0 0 100.0 100.0 0.0

667 0 5 3 3 0 100.0 100.0 100.0

455 0 5 3 3 0 100.0 100.0 100.0

3 1 8 0 5 3 3 0 1 0 0 .0 1 0 0.0 1 0 0 .0

13 7 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

212 0 0 0 0 0 100.0 100.0 0.0

17 0 0 0 0 0 100.0 100.0 0.0

16 0 0 0 0 0 100.0 100.0 0.0

1 5 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

1 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

1 0 0 0 0 0 100.0 100.0 0.0

7 12 0 0 0 0 57.1 57.1 0.0

1 0 0 0 0 0 100.0 100.0 0.0

7 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

0 0 0 0 0 0 0 .0 0 .0 0 .0

6 12 0 0 0 0 55.6 55.6 0.0

0 2 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 2 0 0 0 0 0.0 0.0 0.0

181 20 0 1 1 0 91.1 91.1 100.0

8 5 0 1 1 0 66.7 64.3 100.0

0 7 0 7 7 0 6 6 .7 5 0 .0 1 0 0 .0

8 4 0 0 0 0 6 6 .7 6 6 .7 0 .0

173 15 0 0 0 0 92.9 92.9 0.0

2 6 0 0 0 0 84.2 84.2 0.0

1 6 0 0 0 0 25.0 25.0 0.0

0 6 0 0 0 0 0 .0 0 .0 0 .0

1 0 0 0 0 0 1 0 0 .0 1 0 0 .0 0 .0

1 0 0 0 0 0 100.0 100.0 0.0

NUMBER OF BANKS AND BRANCHES 179

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. NUMBER OF BANKING OFFICES IN THE UNiTED STATES (STATbb AND OTHER AREAS),

D E C E M B E R 3 1 , 1 9 7 3 - C O N T I N U E D

G R O U P E D A C C O R D IN G T O IN S U R A N C E S T A T U S A N D CLASS OF B A N K , A N D BY S T A T E OR A R E A A N D T Y P E OF O F F IC E

1 N ondeposit tru s t com panies are excluded in c o m pu tin g these percentages.

in c lu d e s 14 noninsured branches o f insured banks: 12 in the Pacific Islands and 2 in the Canal Zone. 

M assa chu setts: 1 branch operated by a noninsured bank in New Y o rk .

New Y o rk : 18 branches operated by a 3 State nonm em ber banks in Puerto Rico.

Oregon: 1 branch operated by a national bank in C alifornia.

Pennsylvania: 2 branches operated by a noninsured bank in New Y o rk and a national bank in New Jersey. 

W ashington: 2 branches operated by a national bank in C alifo rn ia .

4 U.S. Possessions: A m erican Samoa, Guam , M id w ay Islands, and W ake Island. T ru s t T e rrito ries: Caroline 

Islands, M ariana Islands, and Marshall Islands.

5 Pacific Islands: 27 branches:

A m erican Samoa: 1 insured branch operated by a State nonm em ber bank in H awaii.

Guam: 14 insured branches operated by 2 State nonm em ber banks in H aw aii, a national bank in California, 

and a national bank in New Y o rk .

Caroline Islands: 4 noninsured branches operated by a national bank in C alifornia and 2 State nonm em ber 

banks in Hawaii.

Mariana Islands: 3 noninsured branches operated by a national bank in C alifornia and a State nonm em ber 

bank in Hawaii.

Marshall Islands: 3 noninsured branches operated by a national bank in C alifornia and a State nonm em ber 

bank in H awaii.

M idw ay Islands: 1 noninsured branch operated by a State nonm em ber bank in Hawaii.

Wake Island: 1 noninsured branch operated by a State nonm em ber bank in Hawaii.

6 Canal Zone: 2 noninsured branches operated by 2 national banks in New Y o rk .

7 Puerto R ico: 22 insured branches operated by 2 national banks in New Y ork.

8 V irg in Islands: 21 insured branches operated by 2 national banks in New Y o rk ,1 national bank in California, 

1 State m em ber bank in Pennsylvania.

in c lu d e s a noninsured nondeposit tru s t com pany th a t is a m em ber o f Federal Reserve System.

180 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 104. NUMBER AND DEPOSITS OF ALL COMMERCIAL AND MUTUAL SAVINGS BANKS, 

(STATES AND OTHER AREAS), DECEMBER 31, 1973 

BANKS GROUPED BY CLASS AND DEPOSIT SIZE

D eposit size 

(in dollars)

A ll

banks

Insured com m ercial banks IMoninsured 

banks 

and tru s t 

com panies

M utual savings banks

Total

Members F.R. System N onmembers 

F.R. System

Insured Noninsu red N ational State

Number of banks

Less than 1 m il l io n ............................ 196 78 15 5 58 118 0 0

1 to 2 m il l io n ...................................... 431 409 51 16 342 22 0 0

2 to 5 m il l io n ...................................... 2,418 2,393 371 121 1,901 23 0 2

5 to 10 m il l io n .................................... 3,278 3,247 799 205 2,243 13 12 6

10 to 25 m il l io n ................................. 4 ,492 4,424 1,659 336 2,429 12 26 30

25 to 50 m il l io n ................................. 1,922 1,807 847 169 791 2 73 40

50 to 100 m illio n ................................. 969 851 457 96 298 9 58 51

100 to 500 m il l io n ............................ 744 595 348 89 158 19 101 29

500 m illio n to 1 b illio n ..................... 127 94 60 17 17 0 31 2

1 b illio n o r m o re ................................. 99 78 54 22 2 0 21 0

Total ......................................... 14,6 76 13,976 4,661 1,076 8,239 218 322 160

(In thousands of dollars)

A m ount of deposits

Less than 1 m illio n ............................ 79,595 54,128 10,953 3,000 40,175 25,467 0 0

1 to 2 m illio n ......................................... 701,019 662,087 90,664 24,743 5 46,680 38,932 0 0

2 to 5 m il l io n ...................................... 8,6 1 6 ,2 9 2 8,528,609 1,377,200 454,175 6,697,234 80,879 0 6,804

5 to 10 m il l io n .................................... 24,1 4 1 ,3 1 4 23,900,785 5,996,697 1,547,277 16,356,811 101,646 90,332 48,551

10 to 25 m il l io n ................................. 7 1 ,7 8 1 ,8 6 9 70,568,355 2 7 ,182,177 5,327,632 38,058,546 196,423 4 8 6,016 531,075

25 to 50 m il l io n ................................. 6 7 ,241,733 62,995,411 30,065,093 5,744,334 27,185,984 116,502 2,662,483 1,467,337

50 to 100 m il l io n ............................... 6 6,995,932 58,775,455 31,901,307 6,474,741 20,399,407 636,936 3,950,458 3,633,083

100 to 500 m il l io n ............................ 154,398,997 122,586,426 74,458,722 19,690,257 28,437,447 4,759,567 21,862,998 5,190,006

500 m illio n to 1 b illio n .................... 90 ,3 3 2 ,5 2 9 67,915,548 42 ,4 9 4 ,8 5 4 12,455,697 12,964,997 0 21,017,394 1,399,587

1 b illio n or m o re ................................. 3 0 0 ,45 3 ,0 68 265,632,621 183,793,962 79,699,225 2,139,434 0 34,820,447 0

Total ......................................... 7 84,742,348 681,619,425 397,371,629 131,421,081 152,826,715 5,956,352 84,890,128 12,276,443

NUMBER OF BANKS AND BRANCHES

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 105. NUMBER AND DEPOSITS OF ALL COMMERCIAL BANKS1 IN THE UNITED STATES (STATES AND OTHER AREAS),

D E C E M B E R 3 1 , 1 9 7 3

BANKS G R O U P ED BY D EPO SIT S IZ E A N D S T A T E

(Am ounts in thousands of dollars)

Banks w ith deposits o f -

State

A ll

banks

Less 

than 

$1 m illio n

$1 m illio n 

to

$2 m illio n

$2 m illio n 

to

$5 m illio n

$5 m illio n 

to

$10 m illion

$10 m illio n 

to

$25 m illio n

$25 m illio n 

to

$50 m illio n

$50 m illio n 

to

$100 m illio n

$100 m illio n 

to

$500 m illio n

$500 m illio n 

to

$1 b illio n

$1 b illio n 

or 

m ore

T o ta l U nited States

Banks ......................................... 14,194 196 431 2,416 3,260 4,436 1,809 860 614 94 78

T otal deposits ....................... 6 8 5 ,5 1 4 ,02 3 77,155 6 8 4,922 8,577,605 23,985,745 70,529,670 62,769,087 59,077,456 126,264,214 67,915,548 265,632,621

State

A labam a

Banks 0 ........................................ 287 1 7 33 77 118 30 9 11 1

D e p o s its .................................... 7 ,711,713 552 11,119 115,772 574,670 1,785,288 951,205 643,847 2,748,758 880,502 0

Alaska

B a n k s ........................................ 10 0 0 0 1 3 1 3 2 0 0

D e p o s its .................................... 7 94,820 0 0 0 7,443 69,563 31,153 208,343 4 78,318 0 0

A rizona

Banks ......................................... 22 7 0 2 3 1 1 1 4 1 2

D e p o s its .................................... 5,784,841 0 0 6,194 18,202 13,577 42,251 94,784 959,300 763,771 3,886,762

Arkansas

0 Banks ......................................... 258 5 10 34 71 91 29 13 5 0

D e p o s its .................................... 4 ,9 2 2 ,7 8 2 1,271 15,119 126,623 520,301 1,481,423 963,774 891,386 922,885 0 0

C alifornia

Banks ......................................... 185 16 5 10 17 52 31 18 24 4 8

D e p o s its .................................... 70 ,8 4 9 ,0 8 8 2,023 7,556 29,598 131,465 888,897 1,080,002 1,311,178 4,025,214 2,612,713 60,760,442

Colorado

0 B a n k s ......................................... 302 29 26 45 68 83 26 18 5 2

D e p o s its .................................... 6,691 ,8 9 2 14,332 38,432 160,347 495,379 1,273,354 907,458 1,173,564 1,206,014 1,423,012 0

C on n e cticu t

Banks ......................................... 68 0 0 7 11 23 10 6 8 1 2

D e p o s its .................................... 6,874,041 0 0 20,427 79,722 386,729 326,474 388,105 2,275,882 626,726 2,769,976

Delaware

0 Banks ......................................... 19 1 0 3 5 4 2 0 3 1

D e p o s its .................................... 1,786,994 0 0 9,348 37,648 51,723 82,882 0 1,030,160 575,233 0

182 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
W ashington D.C.

Banks ......................................... 15 0 0 1 0

D e p o s its ................................... 3 ,4 3 7 ,0 88 0 0 3,676 0

Flo rid a

B a n k s ........................................ 646 11 16 58 92

D e p o s its .................................... 2 2 ,8 75 ,0 9 2 5,920 26,687 205,677 726,592

Georgia

Banks ......................................... 436 7 15 81 126

D e p o s its .................................... 1 1 ,146,203 4,0 6 2 24,493 289,805 935,408

Hawaii

B a n k s ......................................... 12 1 0 1 2

D e p o s its ................................... 2 ,3 7 1 ,5 80 0 0 2,778 15,141

Idaho

Banks ........................................ 24 1 0 2 6

D e p o s its ................................... 2,1 5 9 ,9 5 4 166 0 9,578 39,828

Illin o is

Banks ......................................... 1,172 9 17 200 288

D e p o s its ................................... 52 ,1 0 7 ,0 4 9 2,307 27,635 705,268 2,116,026

Indiana

Banks ......................................... 4 10 3 5 37 78

D e p o s its ................................... 15,344,603 759 8,579 142,219 593,251

Iow a

Banks ........................................ 6 70 4 8 170 206

D e p o s its .................................... 9 ,57 1 ,5 65 1,516 13,284 651,735 1,481,939

Kansas

Banks ........................................ 612 7 48 194 160

D e p o s its .................................... 7,3 45 ,6 0 4 5,625 77,690 667,683 1,151,823

K e n tu cky

B a n k s ........................................ 342 3 13 62 78

D e p o s its ................................... 7 ,8 2 9 ,5 8 2 2,204 21,619 227,936 602,560

Louisiana

Banks ......................................... 245 1 7 21 45

D e p o s its .................................... 9 ,7 2 0 ,7 7 9 726 11,085 74,961 329,761

Maine

Banks ........................................ 48 1 3 4 5

Maine ................................... 1,747,547 293 3,394 14,708 31,973

M aryland

B a n k s ......................................... 112 0 1 10 23

D e p o s its .................................... 7 ,53 5 ,2 62 0 1,798 39,975 161,833

Massachusetts

B a n k s ......................................... 153 1 0 4 24

D e p o s its .................................... 14,246,644 0 0 16,640 182,479

2 4 2 4 1 0

37,582 150,897 165,717 1,123,896 847,327 1,107,993

206 135 92 35 0 1

3 ,367,460 4,7 0 7 ,0 4 4 6,227,124 6 ,385,203 0 1,173,385

140 39 18 6 2 2

2,179,524 1,267,982 1,247,497 1,011,969 1,345,845 2,839,618

1 0 0 5 2 0

11,082 0 0 734,325 1,608,254 0

8 1 2 2 2 0

136,212 29,847 112,864 451,9 0 4 1,379,555 0

327 182 97 45 3 4

5 ,223,744 6 ,330,053 6,550,803 7,666,874 2,011,376 21,472,963

157 67 38 22 1 2

2 ,627,996 2,372,696 2,551,487 3,853,399 6 42,256 2,551,961

214 41 21 6 0 0

3,361,992 1,378,910 1,402,803 1,279,386 0 0

147 41 7 8 0 0

2,340,027 1,314,680 4 5 5,226 1,332,850 0 0

125 35 18 6 2 0

1,887,280 1,120,105 1,154,516 1,452,782 1,360,580 0

102 40 8 19 2 0

1,656,873 1,458,974 657,767 3,916 ,0 4 0 1,614,592 0

19 8 3 5 0 0

284,063 283,221 223,678 906,217 0 0

42 17 10 4 4 1

696,785 6 01,024 606,181 920,529 3 ,176,225 1,330,912

51 26 25 18 1 3

786,285 962,885 1,808,405 3 ,534,610 9 94,158 5,961,182

NUMBER OF BANKS AND BRANCHES 183

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Federal Reserve Bank of St. Louis
Table 105. NUMBER AND DEPOSITS OF ALL COMMERCIAL BANKS1 IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1973-CONTINUED 

BANKS GROUPED BY DEPOSIT SIZE AND STATE 

(Amounts in thousands of dollars)

State

A ll

banks

Banks w ith deposits o f -

Less 

than 

$1 m illio n

$1 m illio n 

to

$2 m illio n

$2 m illio n 

to

$5 m illio n

$5 m illio n 

to

$10 m illio n

$10 m illio n 

to

$25 m illio n

$25 m illio n 

to

$50 m illio n

$50 m illio n 

to

$100 m illio n

$100 m illio n 

to

$500 m illio n

$500 m illio n 

to

$1 b illio n

$1 b illio n 

or 

m ore

M ichigan

Banks ......................................... 340 4 2 12 74 113 63 31 32 5 4

D e p o s its ................................... 26,928,781 1,956 2,633 49,894 562,512 1,887,070 2,282,566 2,197,633 5,801,289 3,741,817 10,401,411

M innesota

B a n k s ........................................ 740 1 20 223 223 191 54 18 7 1 2

D e p o s its .................................... 12,665,613 45 0 33,197 789,255 1,588,689 2,919,988 1,857,525 1,070,312 1,098,986 971,784 2,335,427

Mississippi

Banks ........................................ 181 0 5 17 36 81 29 6 5 2 0

D e p o s its ................................... 4 ,9 1 5 ,83 4 0 7,850 59,145 256,912 1,254,481 1,060,374 3 65,999 673,720 1,237,353 0

M issouri

B a n k s ........................................ 687 7 36 147 174 208 71 27 14 1 2

D e p o s its ................................... 15,044,629 2,357 57,629 512,453 1,280,837 3,272,228 2,454,973 1,868,664 2,858,397 583,414 2,153,677

M ontana

Banks ......................................... 151 2 2 37 42 46 12 7 3 0 0

D e p o s its................................... 2,3 9 6 ,1 9 2 0 2,938 130,367 311,936 718,305 4 4 2,212 4 34,389 3 5 6,045 0 0

Nebraska

Banks ........................................ 449 14 51 144 119 88 22 6 5 0 0

D e p o s its ................................... 5,390,050 7,061 81,056 486,683 870,611 1,302,577 785,738 365,220 1,491,104 0 0

Nevada

B a n k s ......................................... 8 0 0 0 0 1 1 1 4 1 0

D e p o s its .................................... 1,752,022 0 0 0 0 13,226 38,801 79,337 815,131 805,527 0

New Ham pshire

Banks ......................................... 82 4 1 17 17 30 8 3 2 0 0

D e p o s its ................................... 1,432,328 1,822 1,752 59,760 127,323 47 8,906 287,617 206,463 268,685 0 0

N ew Jersey

B a n k s ........................................ 222 1 3 11 21 56 56 28 38 8 0

D e p o s its .................................... 20,352,217 0 4,233 40,127 157,027 1,009,434 1,996,238 1,832,100 9 ,228,520 6,084,538 0

N ew M exico

B a n k s ......................................... 74 1 1 3 9 36 16 5 3 0 0

D e p o s its ................................... 2 ,484,643 0 1,139 10,043 74,177 547,845 571,881 308,294 971,264 0 0

184 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
New Y o rk

B a n k s ...................................... 304 4 1 23 38

D e p o s its................................. 118,689,346 464 1,952 76,044 292,096

N o rth Carolina

Banks ...................................... 90 0 0 13 17

D e p o s its ................................. 11,696,630 0 0 46,601 129,060

N o rth D akota

B a n k s ...................................... 170 1 3 44 61

D e p o sits................................. 2,250,496 952 4,866 169,911 449,673

Ohio

Banks ...................................... 498 1 6 46 107

D e p o sits................................. 28,286,254 543 10,016 170,557 789,827

O klahom a

B a n k s ...................................... 452 7 23 124 107

D e p o sits................................. 8,275,820 4,798 35,068 427,761 762,204

Oregon

Banks ...................................... 46 0 2 5 9

D e p o sits................................. 5,554,210 0 3,577 19,967 71,323

Pennsylvania

B a n k s ...................................... 422 5 0 27 60

D e p o s its ................................. 39,725,261 285 0 102,979 447,354

R hode Island

B a n k s ...................................... 16 1 0 1 3

D e p o s its ................................. 2,474,763 398 0 2,717 22,760

S outh Carolina

B a n k s ...................................... 91 0 2 13 30

D e p o s its ................................. 3,719,926 0 3,755 41,354 225,311

S outh Dakota

Banks ...................................... 159 0 6 54 48

D e p o s its ................................. 2,367,997 0 10,465 195,862 322,623

Tennessee

B a n k s ...................................... 321 4 9 47 81

D e p o sits................................. 11,712,122 1,079 14,865 164,849 588,454

Texas

B a n k s ...................................... 1,266 9 53 211 291

D e p o s its ................................. 3 8 ,574,352 5,619 82,171 731,631 2,121,632

Utah

B a n k s ...................................... 54 4 0 10 12

D e p o sits................................. 2,707,811 1,799 0 30,288 86,251

V e rm o n t

Banks ...................................... 39 1 2 2 9

D e p o s its ................................. 1,209,695 0 3,819 8,317 65,875

69 48 42 56 7 16

1,140,441 1,738,170 2,998,773 13,296,509 4,536,982 94,607,915

24 14 8 9 1 4

368,604 490,220 574,170 2,016,507 871,854 7,199,614

42 11 7 1 0 0

631,319 373,567 419,353 200,855 0 0

163 87 46 29 9 4

2,652,132 3,071,169 3,190,132 5,611,458 6,221,845 6,568,575

127 48 7 6 3 0

1,933,469 1,669,011 459,321 1,168,704 1,815,484 0

15 5 5 3 0 2

265,948 168,962 304,797 506,747 0 4,212,889

154 83 41 38 6 8

2,488,450 2,899,855 2,898,454 8,178,511 4,670,212 18,039,161

4 1 3 1 1 1

53,422 36,284 222,715 101,444 657,979 1,377,044

21 16 2 6 1 0

302,253 501,163 142,240 1,716,047 787,803 0

32 13 2 4 0 0

457,798 449,574 124,020 807,655 0 0

105 46 15 9 4 1

1,740,021 1,593,205 972,409 2,121,938 3,428,682 1,086,620

419 168 64 42 5 4

6,611,198 5,682,849 4,541,160 8,486,375 3,398,482 6,913,235

16 5 0 6 1 0

229,782 175,358 0 1,436,631 747,702 0

14 6 1 4 0 0

225,731 208,796 67,601 629,556 0 0

NUMBER OF BANKS AND BRANCHES 185

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Federal Reserve Bank of St. Louis
Table 105. NUMBER AND DEPOSITS OF ALL COMMERCIAL BANKS1 IN THE UNITED STATES (STATES AND OTHER AREAS),

D E C E M B E R 3 1 , 1 9 7 3 - C O N T I N U E D

BANKS G R OUPED BY D EPO SIT S IZ E A N D S T A T E

(Am ounts in thousands of dollars)

Banks w ith deposits o f -

State

A ll

banks

Less 

than 

$1 m illio n

$1 m illio n 

to

$2 m illio n

$2 m illio n 

to

$5 m illio n

$5 m illion 

to

$10 m illion

$10 m illio n 

to

$25 m illio n

$25 m illio n 

to

$50 m illio n

$50 m illio n 

to

$100 m illio n

$100 m illio n 

to

$500 m illio n

$500 m illio n 

to

$1 billio n

$1 billio n 

or 

m ore

V irgin ia

Banks ........................................ 271 6 7 31 46 93 46 22 16 3 1

D e p o sits................................... 12,241,494 4,013 10,945 107,261 356,028 1,522,851 1,597,004 1,705,736 3,461,147 2,124,499 1,352,010

W ashington

Banks ........................................ 88 2 3 18 18 24 10 4 5 2 2

D e p o sits................................... 7,708,997 826 4,357 61,077 124,425 350,845 339,002 285,063 1,116,661 1,291,374 4,135,367

West V irginia

Banks ........................................ 210 1 2 24 53 85 27 14 4 0 0

D e p o sits................................... 4,361,835 962 2,873 85,519 399,360 1,349,372 972,190 924,452 627,107 0 0

Wisconsin

Banks ........................................ 621 5 10 117 154 228 66 31 8 1 1

D e p o sits................................... 13,094,224 15 15,276 421,908 1,149,492 3,650,231 2,234,406 2,218,505 1,496,711 513,198 1,394,482

W yom ing

Banks ........................................ 71 0 0 14 15 31 9 0 0 0 0

D e p o sits................................... 1,267,730 0 0 421,837 118,529 526,863 351,086 0 0 0 0

O ther Areas

Guam

B a n k s ........................................ 1 0 0 0 0 1 0 0 0 0 0

D e p o s its ................................... 16,426 0 0 0 0 16,426 0 0 0 0 0

Puerto Rico

Banks ........................................ 14 0 0 1 0 2 2 3 4 2 0

D e p o sits................................... 2,837,904 0 0 3,089 0 4,330 75,774 204,912 946,905 1,562,894 0

V irgin Islands

B a n k s ........................................ 8 3 0 1 0 1 0 2 1 0 0

D e p o s its ................................... 523,698 0 0 3,401 0 16,665 0 169,957 333,675 0 0

1 Excludes data fo r branches in U.S. te rrito rie s and tru s t te rrito rie s o f banks headquartered in the United States and fo r 17 insured branches, in New Y o rk , o f 3 insured nonm em ber banks in Puerto Rico. Includes nondeposit 

tru s t companies.

186 FEDERAL DEPOSIT INSURANCE CORPORATION

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ASSETS AND LIABI LITIES OF BANKS 

Table 106. Assets and liabilities of all commercial banks in the United States (States and other areas), June 

30, 1973

Banks grouped by insurance status and class o f bank

Table 107. Assets and liabilities of all commercial banks in the United States (States and other areas),

December 31, 1973 

Banks grouped by insurance status and class o f bank

Table 108. Assets and liabilities of all mutual savings banks in the United States (States and other areas),

June 30, 1973, and December 31, 1973 

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, 1963, 1969-1973 

Table 110. Assets and liabilities of insured mutual savings banks in the United States (States and other 

areas), December call dates, 1963, 1969-1973 

Table 111. Percentages of assets and liabilities of insured commercial banks operating throughout 1973 in 

the United States (States and other areas), December 31, 1973 

Banks grouped by amount of deposits

Table 112. Percentages of assets and liabilities of insured mutual savings banks operating throughout 1973 

in the United States (States and other areas), December 31, 1973 

Banks grouped by amount of deposits

Table 113. Distribution of insured commercial banks in the United States (States and other areas),

December 31, 1973

Banks grouped according to amount o f deposits and by ratios o f selected items to assets or

deposits

Commercial banks

Before 1969, statements of assets and liabilities were submitted by in- ment loans carried in surplus accounts. All banks are required to report 

sured commercial banks on either a cash or an accrual basis, depending upon income taxes on an accrual basis.

the bank's method of bookkeeping. In 1969, insured commercial banks Since 1969, all majority-owned premises subsidiaries are fully consolihaving resources of $50 million or more, and beginning in 1970, $25 million dated; other majority-owned domestic subsidiaries (but not commercial bank 

or more, were required to report their assets and liabilities on the basis of subsidiaries) are consolidated if they meet either of the following criteria: (a) 

accrual accounting. Where the results are not significantly different, partic- any subsidiary in which the parent bank's investment represents 5 percent or 

ular accounts may be reported on a cash basis. Banks not subject to full more of its equity capital accounts; (b) any subsidiary whose gross operating 

accrual accounting are required to report the instalment loan function on an revenues amount to 5 percent or more of the parent bank's gross operating 

accrual basis, or else to submit a statement of unearned income on instal- revenues; or (beginning in December 1972) (c) any subsidiary whose "InASSETS AND LIABILITIES OF BANKS 187

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Federal Reserve Bank of St. Louis
come (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 1972, 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 parent's share of 

the subsidiaries' net worth.

In the case of insured banks with branches outside the 50 States, 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 are treated as separate entities but 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.

Prior to 1969, securities held by commercial banks were reported net of 

valuation reserves; total loans were reported both gross (before deductions 

for reserves) and net, the latter included in "Total assets." Beginning in 

1969, loans and securities are shown on a gross basis in "Total assets" of 

commercial banks. All reserves on loans and securities, including the reserves 

for bad debts set up pursuant to Internal Revenue Service rulings, are included in "Reserves on loans and securities" on the liability side of the 

balance sheet.

Individual loan items are reported gross. Instalment loans, however, are 

ordinarily reported net if the instalment payments are applied directly to 

the reduction of the loan. Such loans are reported gross if, under contract, 

the payments do not immediately reduce the unpaid balances of the loan but 

are assigned or pledged to assure repayment at maturity.

The category "Trading account securities" was added to the condition 

report of commercial banks in 1969 to obtain this segregation for banks that 

regularly deal in securities with 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" includes 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.)

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 June 30, 1973 

and December 31, 1973, are shown in the Corporation's semiannual publication Assets and Liabilities—Commercial and Mutual Savings Banks.

Mutual savings banks

Effective December 31, 1971, the Reports of Condition and Income for 

mutual savings banks were revised. Among the changes was a requirement for 

consolidating the accounts of branches and subsidiaries with the parent 

bank, on a comparable basis with commercial bank reports (see above). A 

1972 revision broadened the criteria for consolidated reporting; it also provided for the reporting of investments in unconsolidated subsidiaries on an 

equity basis, comparable with commercial bank reporting.

One objective of the revisions in 1971 was to provide a simplified reporting form. To this end, the schedules for deposits and securities were condensed and simplified.

Several changes were made in the reporting of specific items. Loans are 

reported in somewhat more detail than formerly. In real estate loans, construction loans are shown separately, and loans secured by residential properties are detailed as to those secured by 1- to 4-family properties and by 

multifamily (5 or more) properties.

Another important change shifted various reserve accounts which had 

been carried as deductions against assets (about $200 million in 1971) into 

the surplus accounts. Figures for earlier years in table 110 have been revised 

in order to provide comparability with the 1971-1973 data.

Beginning June 30, 1972, mutual savings banks with total resources of 

$25 million or more are required to prepare Reports of Condition on the 

basis of accrual accounting. All banks, irrespective of size, are required to 

report income taxes on an accrual basis.

Sources of data

Insured banks: see p. 211 ; noninsured banks: State banking authorities; 

and reports from individual banks.

188 FEDERAL DEPOSIT INSURANCE CORPORATION

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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, 1973 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK 

(Amounts in thousands of dollars)

Insured banks Noninsured banks

Asset, lia b ility , o r capital account item Total

Total

Members of 

Federal Reserve System

N o t 

members 

o f F.R. 

System

T otal

Banks

o f

deposit2

N ondeposit

tru st

T otal N a tio n a l1 State companies3

T o ta l assets.............................................................................................................. 776,686,843 767,155,716 606,943,804 451,926,315 155,017,489 160,211,912 9,533,127 9,10 8,883 424,244

Cash, balances w ith o th e r banks, and cash item s in process

o f c o lle c t io n - t o t a l.......................................................................................

C urrency and c o in ..........................................................................................

Reserve w ith Federal Reserve banks (m em ber b a n k s )......................

Demand balances w ith banks in U.S. (except A m erican

branches of foreign banks) .................................................................

O ther balances w ith banks in the U nited States ................................

Balances w ith banks in foreign countries .............................................

Cash items in process o f c o lle c tio n .........................................................

104,302,541

7,718,407

25,147,709

27,835,827

2,314,172

996,133

40,290,293

102,250,517

7,700,879

25,147,709

26,600,173

1,872,688

759,463

40,169,605

88,361,217

5,765,184

25,147,709

16,869,898

1,170,500

601,480

38,806,446

61,470,263

4,407,471

18,665,038

11,618,582

974,192

302,533

25,502,447

26,890,954

1,357,713

6,482,671

5,251,316

196,308

298,947

13,303,999

13,889,300

1,935,695

0

9,730,275

702,188

157,983

1,363,159

2,052,024

17,528

0

1,235,654

441,484

236,670

120,688

1,972,156

14,884

0

1,174,444

425,522

236,635

120,671

79,868

2,644

0

61,210

15,962

35

17

S e c u ritie s -to ta l....................................................................................................

U.S. Treasury securities................................................................................

Obligations of oth e r U.S. G overnm ent agencies and c o r p s ............

O bligations of States and p o litic a l s u b d ivisio n s...................................

O ther se cu ritie s...............................................................................................

179,823,254

58,350,466

24,247,117

91,611,513

5,614,158

178,336,927

57,912,161

23,951,377

91,090,547

5,382,842

129,662,981

41,084,931

15,269,815

69,406,112

3,902,123

99,706,415

31,655,507

11,772,760

53,283,192

2,994,956

29,956,566

9,429,424

3,497,055

16,122,920

907,167

48,673,946

16,827,230

8,681,562

21,684,435

1,480,719

1,486,327

438,305

295,740

520,966

231,316

1,282,511

391,883

292,201

427,776

170,651

203,816

46,422

3,539

93,190

60,665

Investm ent s e c u ritie s -to ta l ......................................................................

U.S. T reasu ry s e c u r itie s ........................................................................

O b lig a tio n s o f o th e r U.S. G o v e rn m e n t agencies a n d c o r p s ___

O b lig a tio n s o f S ta te s a n d p o lit ic a l s u b d iv is io n s ...........................

O th e r s e c u r it ie s .......................................................................................

175,110,963

5 6 ,4 0 1 ,2 8 7

2 3 ,5 9 2 ,1 0 4

8 9 ,6 4 4 ,2 4 8

5 ,4 7 3 ,3 2 4

173,651,238

5 5 ,9 8 9 ,5 8 4

2 3 ,2 9 6 ,3 6 4

8 9 ,1 2 3 ,2 8 2

5 ,2 4 2 ,0 0 8

125,038,040

3 9 ,1 7 2 ,1 4 0

1 4 ,6 2 1 ,4 6 0

6 7 ,4 8 2 ,8 1 9

3 ,7 6 1 ,6 2 1

95,978,908

3 0 ,0 2 1 ,0 2 7

1 1 ,2 7 5 ,3 6 9

5 1 ,8 1 5 ,8 8 5

2 ,8 6 6 ,6 2 7

29,059,132

9 ,1 5 1 ,1 1 3

3 ,3 4 6 ,0 9 1

1 5 ,6 6 6 ,9 3 4

8 9 4 ,9 9 4

48,613,198

1 6 ,8 1 7 ,4 4 4

8 ,6 7 4 ,9 0 4

2 1 ,6 4 0 ,4 6 3

1 ,4 8 0 ,3 8 7

1,459,725

4 1 1 ,7 0 3

2 9 5 ,7 4 0

5 2 0 ,9 6 6

2 3 1 ,3 1 6

1,278,179

3 8 7 ,5 5 1

2 9 2 ,2 0 1

4 2 7 ,7 7 6

1 7 0 ,6 5 1

181,546

2 4 ,1 5 2

3 ,5 3 9

9 3 ,1 9 0

6 0 ,6 6 5

Trading account s e c u ritie s -to ta l ............................................................

U.S. T re a su ry s e c u r itie s ........................................................................

O b lig a tio n s o f o th e r U .S. G o v e rn m e n t a g en cies a n d c o r p s ____

O b lig a tio n s o f S ta te s a n d p o litic a l s u b d iv is io n s ...........................

O th e r s e c u r it ie s .......................................................................................

4,712,291

1 ,9 4 9 ,1 7 9

6 5 5 ,0 1 3

1 ,9 6 7 ,2 6 5

1 4 0 ,8 3 4

4,685,689

1 ,9 2 2 ,5 7 7

6 5 5 ,0 1 3

1 ,9 6 7 ,2 6 5

1 4 0 ,8 3 4

4,624,941

1 ,9 1 2 ,7 9 1

6 4 8 ,3 5 5

1 ,9 2 3 ,2 9 3

1 4 0 ,5 0 2

3,727,507

1 ,6 3 4 ,4 8 0

4 9 7 ,3 9 1

1 ,4 6 7 ,3 0 7

1 2 8 ,3 2 9

897,434

2 7 8 ,3 1 1

1 5 0 ,9 6 4

4 5 5 ,9 8 6

1 2 ,1 7 3

60,748

9 ,7 8 6

6 ,6 5 8

4 3 ,9 7 2

3 3 2

26,602

2 6 ,6 0 2

0

0

0

4 .332

4 .3 3 2

0

0

0

22.270

2 2 .2 7 0

0

0

0

Federal funds sold and securities purchased under agreements

to r e s e ll- t o t a l..........................................................................................

W ith dom estic com m ercial b a n k s ............................................................

W ith brokers and dealers in s e c u ritie s ....................................................

W ith o th e rs ......................................................................................................

27,671,841

26,039,223

1,301,124

331,494

26,181,747

24,549,129

1,301,124

331,494

19,705,425

18,123,236

1,296,786

285,403

16,071,708

14,582,758

1,221,747

267,203

3,633,717

3,540,478

75,039

18,200

6,476,322

6,425,893

4,338

46,091

1.490.094

1.490.094 

0 

0

1.480.959

1.480.959 

0 

0

9.135

9.135 

0 

0

ASSETS AND LIABI LITIES OF BANKS

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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, 1973—CONTINUED 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK 

(Amounts in thousands of dollars)

Insured banks N oninsured banks

Asset, lia b ility , or capital a ccount item T o ta l

T otal

Members o f 

Federal Reserve Sytem

N o t 

members 

o f F.R. 

System

T o ta l

Banks

o f

deposit2

N ondeposit

tru s t

T otal N a tio n a l1 State com panies3

O ther lo a n s - to ta l................................................................................................... 433,349,241 4 29,558,465 343,030,351 255,5 68 ,8 5 4 8 7,4 6 1 ,4 9 7 86 ,5 2 8 ,1 1 4 3,790,776 3,755,449 3 5,327

Real estate lo a n s - to ta l................................................................................. 109,129,772 108,890,072 80,221,050 61,933,018 18,288,032 28,669,022 239,700 227,130 12,570

S e c u re d b y f a r m la n d ............................................................................... 5 ,2 3 9 ,5 1 4 5 ,2 1 2 ,7 8 3 2 ,3 9 8 ,2 0 8 1 ,9 2 3 ,7 5 4 4 7 4 ,4 5 4 2 ,8 1 4 ,5 7 5 2 6 ,7 3 1 2 6 ,1 5 4 5 7 7

S e c u re d b y r e s id e n tia l p r o p e rtie s :

S e c u re d b y 1 - to 4 - f a m i l y r e s id e n tia l p r o p e rtie s :

In s u r e d b y F e d e ra l H o u s in g A d m in is t r a t io n .................... 6 ,9 8 9 ,2 2 7 6 ,9 5 8 ,7 1 4 6 ,0 0 6 ,7 9 4 4 , 9 6 1 ,1 7 3 1 ,0 4 5 ,6 2 1 9 5 1 ,9 2 0 3 0 ,5 1 3 3 0 ,4 8 9 2 4

G u a ra n te e d b y V e te ra n s A d m in is t r a t io n ............................ 3 ,2 1 0 ,7 4 0 3 ,1 8 6 ,8 0 9 2 ,7 6 2 ,0 4 5 2 ,2 5 6 ,2 6 0 5 0 5 ,7 8 5 4 2 4 ,7 6 4 2 3 ,9 3 1 2 3 ,9 3 1 0

N o t in s u re d o r g u a ra n te e d b y F H A o r V A ....................... 5 1 ,9 7 9 ,1 1 8 5 1 ,8 6 6 ,5 6 2 3 7 ,6 4 3 ,1 5 7 2 9 ,7 7 8 ,5 1 8 7 ,8 6 4 ,6 3 9 1 4 ,2 2 3 ,4 0 5 1 1 2 ,5 5 6 1 0 6 ,5 3 9 6 ,0 1 7

S e c u re d b y m u lt if a m ily ( 5 o r m o r e ) r e s id e n tia l p r o p e rtie s :

In s u re d b y F e d e ra l H o u s in g A d m in is t r a t io n .................... 1 ,4 9 0 ,3 4 8 1 ,4 8 9 ,2 7 5 1 ,3 2 3 ,5 5 4 8 6 9 ,3 2 5 4 5 4 ,2 2 9 1 6 5 ,7 2 1 1 ,0 7 3 1 ,0 7 3 0

N o t in s u re d b y F H A ............................................................... 4 ,9 8 9 ,1 8 5 4 ,9 8 5 ,3 0 7 4 ,0 3 6 ,6 1 8 2 ,6 8 8 ,8 1 1 1 ,3 4 7 ,8 0 7 9 4 8 ,6 8 9 3 ,8 7 8 3 ,8 7 8 0

S e c u re d b y o t h e r p r o p e r tie s .................................................................. 3 5 ,2 3 1 ,6 4 0 3 5 ,1 9 0 ,6 2 2 2 6 ,0 5 0 ,6 7 4 1 9 ,4 5 5 ,1 7 7 6 ,5 9 5 ,4 9 7 9 ,1 3 9 ,9 4 8 4 1 ,0 1 8 3 5 ,0 6 6 5 ,9 5 2

Loans to dom estic com m ercial and foreign b a n k s ............................... 9,981,638 9,062,544 8,634,446 5 ,045,317 3,589,129 428,0 9 8 919,094 919,094 0

Loans to o th e r financial in s titu tio n s ........................................................ 27,840,536 27,723,734 26,295,737 17,864,554 8,431,183 1,427,997 116,802 116,702 100

Loans to brokers and dealers in s e c u ritie s .............................................. 7,367,806 7,296,921 7,102,874 3 ,232,347 3,870,527 194,047 70,885 70,510 375

O ther loans fo r pu rchasing o r carryin g secu ritie s ................................. 4,781 ,7 0 3 4,748,409 4,186,836 3 ,197,055 939,781 611,573 33,294 29,808 3,486

Loans to farm ers (exclu d in g loans on real e s ta te )............................... 15,983,575 15,963,920 9,466,803 8 ,134,449 1,332,354 6 ,497,117 19,655 19,201 454

Com m ercial and ind u stria l loans (incl. open m a rke t p a p e r)............. 1 51,639,349 149,794,310 127,684,637 9 3 ,976,850 3 3,707,787 22,109,673 1,845,039 1,836,129 8,910

Loans to individ u a ls— t o t a l .......................................................................... 9 5 ,227,803 94,811,378 69,214,721 54,652,148 14,562,573 25,596,657 4 16,425 413,276 3,149

Passenger a u to m o b ile in s ta lm e n t l o a n s ........................................... 3 2 ,3 3 1 ,0 4 4 3 2 ,1 0 9 ,1 9 8 2 2 ,1 2 0 ,9 2 2 1 8 ,2 1 9 ,6 4 5 3 , 9 0 1 ,2 7 7 9 , 9 8 8 ,2 7 6 2 2 1 ,8 4 6 2 2 0 ,4 3 5 1,4 1 1

C re d it c a rd s a n d r e la te d p la n s :

R e ta il (c h a rg e a c c o u n t) c r e d it c a r d p l a n s ................................. 5 ,6 4 7 ,4 2 4 5 ,6 4 7 ,2 1 9 5 ,0 7 1 ,4 3 2 4 , 0 1 3 ,1 9 4 1 ,0 5 8 ,2 3 8 5 7 5 ,7 8 7 2 0 5 2 0 5 0

C h e c k c r e d it a n d re v o lv in g c r e d it p l a n s .................................... 2 ,0 1 0 ,4 4 6 2 ,0 1 0 ,4 4 6 1 ,7 3 6 ,4 7 9 1 ,0 5 4 ,3 3 2 6 8 2 ,1 4 7 2 7 3 ,9 6 7 0 0 0

O th e r r e ta il c o n s u m e r in s ta lm e n t lo a n s :

M o b ile h o m e s , n o t in c lu d in g tra v e l tr a ile r s ............................... 7 ,3 3 7 ,3 9 4 7 ,3 3 4 ,9 3 8 5 ,2 6 7 ,7 6 9 4 , 4 3 5 ,6 8 9 8 3 2 ,0 8 0 2 ,0 6 7 ,1 6 9 2 ,4 5 6 2 ,4 5 6 0

O th e r r e ta il c o n s u m e r g o o d s ........................................................ 5 ,9 1 7 ,3 6 3 5 ,8 9 8 ,7 3 3 3 ,9 1 4 ,2 2 7 3 ,2 9 4 ,2 1 5 6 2 0 ,0 1 2 1 ,9 8 4 ,5 0 6 1 8 ,6 3 0 1 8 ,3 7 4 2 5 6

R e s id e n tia l r e p a ir a n d m o d e r n iz a tio n in s ta lm e n t l o a n s ............. 4 ,6 2 3 ,1 3 6 4 ,6 1 5 ,6 5 3 3 ,4 2 0 ,2 7 0 2 ,6 3 9 ,4 7 3 7 8 0 ,7 9 7 1 ,1 9 5 ,3 8 3 7 ,4 8 3 7 ,3 2 7 1 5 6

O th e r in s ta lm e n t lo a n s f o r p e rs o n a l e x p e n d itu r e s ....................... 1 3 ,9 1 5 ,5 3 9 1 3 ,8 0 3 ,8 6 5 9 ,7 3 6 ,0 5 9 7 ,6 5 6 ,9 3 7 2 ,0 7 9 ,1 2 2 4 ,0 6 7 ,8 0 6 1 1 1 ,6 7 4 1 1 ,3 2 4 3 5 0

S in g le -p a y m e n t lo a n s f o r p e rs o n a l e x p e n d it u r e s .......................... 2 3 ,4 4 5 ,4 5 7 2 3 ,3 9 1 ,3 2 6 1 7 ,9 4 7 ,5 6 3 1 3 ,3 3 8 ,6 6 3 4 , 6 0 8 ,9 0 0 5 ,4 4 3 ,7 6 3 5 4 ,1 3 1 5 3 ,1 5 5 9 7 6

A ll o the r loans (in clu d in g o v e rd ra fts )..................................................... 11,397,059 11,267,177 10,273,247 7,533,116 2,740,131 993,930 129,882 123,599 6,283

T o ta l loans and securities ..................................................................... 640,8 44 ,3 3 6 634,077,139 492,398,757 3 71,346,977 1 21 ,051,780 141,678,382 6,767,197 6,518,919 248,278

Bank premises, fu rn itu re and fix tu re s , and o th e r assets

representing bank p re m is e s .................................................................. 12,205,063 12,147,827 9,503,000 7,519,711 1,983,289 2,644,827 57,236 41,687 15,549

Real estate ow ned o th e r than bank prem ises......................................... 388,472 375,908 239,125 162,216 76,909 136,783 12,564 3,830 8,734

Investm ents in subsidiaries n o t c o n s o lid a te d ......................................... 1,313,821 1,303,840 1,283,529 1 ,000,256 283,273 20,311 9,981 9,931 50

C ustom ers' lia b ility on acceptances o u ts ta n d in g ................................. 4,826,995 4,746,124 4,542,418 2,732 ,02 5 1,810,393 2 03,706 80,871 80,871 0

O ther assets ..................................................................................................... 12,807,615 12,254,361 10,615,758 7,694,867 2,920,891 1,638,603 553,254 481,489 71,765

190 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T o ta l lia b ilitie s, reserves, and capital a c c o u n ts ..........................................

Business and personal d e p o s its - to ta l....................................................

Individuals, partnerships, and c o rp o ra tio n s -d e m a n d .................

Individuals, partnerships, and c o r p o r a tio n s - tim e ......................

S a vings d e p o s its ................................................................................

D e p o s its a c c u m u la te d f o r p a y m e n t o f p e rs o n a l lo a n s ..........

O th e r d e p o s its o f in d iv id u a ls , p a rtn e rs h ip s , a n d c o r p s ------

C ertified and o ffice rs' checks, letters o f cre d it, travelers' 

checks, etc............................................................................................

G overnm ent d e p o s its -to ta l ......................................................................

U nited States G o v e rn m e n t-d e m a n d ...............................................

United States G o v e rn m e n t-tim e .......................................................

States and s u b d iv is io n s -d e m a n d .......................................................

States and su b d ivisio n s-tim e ............................................................

Dom estic interbank d e p o s its -to ta l .......................................................

C ommercial banks in the U nited S tates-dem and ......................

Com m ercial banks in the U nited S ta te s - tim e ..............................

M utual savings banks in the U nited S ta te s -d e m a n d ....................

M utual savings banks in th e U nited S ta te s - tim e .........................

Foreign governm ent and bank d e p o s its -to ta l.....................................

Foreign governments, central banks, e tc .-d e m a n d ......................

Foreign governm ents, central banks, e t c . - t im e ...........................

Banks in foreign co u n trie s -d e m a n d ...............................................

Banks in foreign c o u n tr ie s - tim e .......................................................

T o ta l d e p o s its .............................................................................

D e m a n d ..................................................................................

T i m e .......................................................................................

Miscellaneous lia b ilitie s - to ta l...................................................................

Federal funds purchased and securities sold under

agreements to rep u rch a se ..............................................................

Other lia b ilitie s fo r borrow ed m o n e y ...............................................

Mortgage indebtedness ........................................................................

Acceptances o u ts ta n d in g ......................................................................

O ther lia b ilitie s .......................................................................................

T otal lia b ilitie s ...........................................................................

M in o rity interest in consolidated subsidiaries ..............................

Reserves on loans and s e c u ritie s -to ta l.............................................

Reserve fo r bad debt losses on lo a n s ...............................................

O ther reserves on lo a n s ........................................................................

Reserves on securities.............................................................................

776,688,843 767,155,716 606,943,804 451,926,315 155,017,489 160,211,912 9,533,127 9,108,883 424,244

516,917,208 513,374,378 392,287,579 298,498,226 93,789,353 121,086,799 3,542,830 3,511,048 31,782

207,461,274 206,565,058 159,784,240 120,941,806 38,842,434 46,780,818 896,216 864,957 31,259

298,211,810 296,260,553 223,701,430 171,897,564 51,803,866 72,559,123 1,951,257 1,950,988 269

1 2 8 ,0 1 5 ,1 3 2 1 2 7 ,6 5 8 ,6 8 0 9 4 ,6 7 8 ,0 2 2 7 4 ,0 6 6 ,0 8 3 2 0 ,6 1 1 ,9 3 9 3 2 J 9 8 0 ,6 0 8 3 5 6 ,5 0 2 3 5 6 ,5 0 1 1

5 1 8 ,3 8 5 5 1 2 ,9 4 7 3 7 4 ,8 9 3 3 0 3 ,8 9 8 7 0 J99 5 1 3 8 ,0 5 4 5 ,4 3 8 5 ,4 2 8 10

1 6 9 ,6 7 8 ,2 9 3 1 6 8 ,0 8 8 £ 7 6 1 2 8 ,6 4 8 ,5 1 5 9 7 ,5 2 7 ,5 8 3 3 1 ,120J332 3 9 ,4 4 0 ,4 6 1 1 ,5 8 9 ,3 1 7 1 ,5 8 9 ,0 5 9 2 5 8

11,244,124 10,548,767 8,801,909 5,658,856 3,143,053 1,746,858 695,357 695,103 254

70,663,743 70,361,356 53,035,970 42,029,028 11,006,942 17,325,386 302,287 301,781 606

10,473,605 10,437,407 8,172,710 6,187,018 1,985,692 2,264,697 36,198 35,593 605

738,257 736,514 574,618 504,377 70,241 161,896 1,743 1,743 0

18,456,835 18,285,946 13,361,466 10,567,563 2,793,903 4,924,480 170,889 170,889 0

40,995,046 40,901,489 30,927,176 24,770,070 6,157,106 9,974,813 93,557 93,556 1

32,504,837 32,069,259 30,388,872 17,532,671 12,856,201 1,680,387 435,578 434,825 753

25,819,712 25,687,801 24,729,999 14,262,999 10,467,000 957,802 131,911 131,158 753

4,865,541 4,717,024 4,099,920 2,486,628 1,613,292 617,104 148,517 148,517 0

1,187,844 1,049,754 964,385 455,800 508,585 85,369 138,090 138,090 0

631,740 614,680 594,568 327,244 267,324 20,112 17,060 17,060 0

14,812,956 13,313,008 12,913,983 7,550,532 5,363,451 399,025 999,948 997,716 2,232

1,193,466 1,047,821 1,034,185 491,296 542,889 13,636 145,645 145,410 235

8,804,604 8,181,758 8,048,601 5,047,895 3,000,706 133,157 622,846 620,849 1,997

4,071,725 3,848,531 3,627,193 1,931,611 1,695,582 221,338 223,194 223,194 0

243,161 234,898 204,004 79,730 124,274 30,894 8,263 8,263 0

634,898,744 620,118,001 488,626,404 365,610,457 123,015,947 140,491,597 5,280,743 5,245,370 35,373

2 7 9 ,9 0 8 ,5 8 5 2 7 7 ,4 7 1 ,0 8 5 2 2 0 ,4 7 6 ,0 8 7 1 6 0 ,4 9 6 ,9 4 9 5 9 ,9 7 9 ,1 3 8 5 6 ,9 9 4 ,9 9 8 2 ,4 3 7 ,5 0 0 2 ,4 0 4 ,3 9 4 3 3 ,1 0 6

3 5 4 ,4 9 0 ,1 5 9 3 5 1 ,6 4 6 ,9 1 6 2 6 8 ,1 5 0 ,3 1 7 2 0 5 ,1 1 3 ,5 0 8 6 3 ,0 3 6 ,8 0 9 8 3 ,4 9 6 ,5 9 9 2 , 8 4 3 ^ 4 3 2 , 8 4 0 £ 7 6 2 J 6 7

79,079,646 75,435,962 69,327,969 50,139,205 19,188,764 6,107,993 3,643,684 3,454,378 189,306

42,906,086 42,436,395 40,809,248 30,642,552 10,166,696 1,627,147 469,691 469,691 0

6,655,835, 6,131,818 5,749,114 3,190,907 2,558,207 382,704 524,017 515,534 8,483

1,155,932 1,153,198 972,505 433,966 538,539 180,693 2,734 1,856 878

4,991,064 4,900,311 4,696,376 2,836,563 1,859,813 203,935 90,753 90,753 0

28,870,729 20,814,240 17,100,726 13,035,217 4,065,509 3,713,514 2,556,489 2,376,544 179,945

713,478,390 704,553,963 557,954,373 415,749,662 142,204,711 146,599,590 8,924,427 8,699,748 224,679

6,717 6,030 2,979 2,960 19 3,051 687 0 687

7,174,650 7,145,759 5,878,686 4,296,606 1,582,080 1,267,073 28,891 28,681 210

6,880,090 6,862,086 5,696,405 4,168,221 1,528,184 1,165,681 18,004 17,844 160

121,076 113,053 65,245 52,768 12,477 47,808 8,023 8,003 20

173,484 170,620 117,036 75,617 41,419 53,584 2,864 2,834 30

ASSETS AND LIABI LITI ES OF BANKS

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 106. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

J U N E 3 0 , 1 9 7 3 —C O N T IN U E D

B A N K S G R O U PED BY IN S U R A N C E S T A T U S A N D CLASS OF B A N K

(Am ounts in thousands of dollars)

Insured banks N oninsured banks

Assets, lia b ility , or capital account item T otal

T otal

Members of 

Federal Reserve System

N ot 

members 

o f F.R. 

System

T otal

Banks

o f

d eposit2

N ondeposit

tru s t

Total N a tio n a l1 State com panies3

Capital a c c o u n ts - to ta l................................................................................. 56,029,086 55,449,964 43,107,766 31,877,087 11,230,679 12,342,198 579,122 380,454 198,668

Capital notes and d e b e n tu re s ............................................................... 4,043,378 3,923,973 3,218,635 2,093,306 1,125,329 705,338 119,405 118,576 829

E q u ity c a p ita l-to ta l ............................................................................... 51,985,708 51,525,991 39,889,131 29,783,781 10,105,350 11,636,860 459,717 261,878 197,839

P re fe rre d s to c k ................................................................................. 7 0 ,4 1 8 6 5 ,5 3 3 4 8 ,7 8 8 3 7 ,5 4 2 1 1 2 4 6 1 6 ,7 4 5 4 ,8 8 5 4 ,7 3 5 15 0

C o m m o n s t o c k .................................................................................... 1 3 ,5 2 9 ,5 8 1 1 3 ,4 3 3 ,8 8 0 1 0 2 5 0 ,3 4 3 7 ,6 6 7 ,5 1 5 2 , 5 8 2 ,8 2 8 3 ,1 8 3 ,5 3 7 9 5 ,7 0 1 5 0 ,8 4 9 4 4 ,8 5 2

S u rp lu s ................................................................................................... 2 2 ,7 6 8 ,0 3 5 2 2 ,6 3 9 ,6 1 2 1 7 ,7 3 4 ,2 5 6 1 3 ,1 6 0 ,9 8 2 4 , 5 7 3 2 7 4 4 2 0 5 ,3 5 6 1 2 8 ,4 2 3 9 8 ,7 4 0 2 9 ,6 8 3

U n d iv id e d p r o f i t s ............................................................................... 1 4 ,7 2 3 ,8 1 9 1 4 ,5 4 7 ,9 7 1 1 1 2 2 7 ,5 4 9 8 ,4 3 4 ,1 5 6 2 ,7 9 3 ,3 9 3 3 ,3 2 0 ,4 2 2 1 7 5 ,8 4 8 7 6 ,3 3 4 9 9 ,5 1 4

R eserve f o r c o n tin g e n c ie s a n d o t h e r c a p ita l re s e rv e s ............. 8 9 3 ,8 5 5 8 3 8 2 9 5 6 2 8 ,1 9 5 4 8 3 ,5 8 6 1 4 4 ,6 0 9 2 1 0 ,8 0 0 5 4 ,8 6 0 3 1 2 2 0 2 3 ,6 4 0

P E R C E N T A G E S

O f to ta l assets:

Cash and balances w ith o th e r b a n k s ........................................................ 13.4% 13.3% 14.6% 13.6% 17.3% 8.7% 21.5% 21.7% 18.8%

U.S. Treasury securities and o bligations o f o th e r U.S. G overnm ent

agencies and c o rp o ra tio n s ..................................................................... 10.3 10.3 8.9 9.1 8.1 15.9 7.4 7.5 6.5

O ther s e c u ritie s ................................................................................................ 12.9 12.9 12.5 12.9 11.3 14.5 8.2 6.6 41.5

Loans (in clu d in g federal fun d s sold and securities

purchased under agreem ents to r e s e ll) .............................................. 59.4 59.4 59.8 60.1 58.8 58.1 55.4 57.5 10.5

O ther assets ..................................................................................................... 4.1 4.0 4.3 4.2 4.6 2.9 7.5 6.8 22.7

T otal capital accounts4 ............................................................................... 7.3 7.2 7.1 7.1 7.2 7.7 16.85 12.35 46.8

O f to ta l assets o th e r th a n cash and U.S. Treasury s e c u r itie s :...............

T o ta l capital accounts4 ................................................................................. 9.2 9.1 9.0 8.9 9.4 9.5 2 1 .6 5 15.8s 62.0

N um ber o f b a n k s ................................................................................................... 14,069 13,854 5,707 4,631 1,076 8,147 215 147 68

1 Excludes 2 national banks located in the V irg in Islands and Puerto R ico.

in c lu d e s asset and lia b ility figures fo r branches o f fore ign banks (tabulated as banks) licensed to do a deposit business. Capital is not allocated to these branches by the parent banks.

3A m o u n ts show n as deposits are special accounts and uninvested tru s t funds, w ith the la tte r classified as demand deposits o f individuals, partnerships, and corporations.

4 0 n ly asset and lia b ility data are included fo r branches located in " o th e r areas" o f banks headquartered in one o f the 50 States; because no capital is allocated to these branches, they are excluded from the c o m p u ta tio n of 

ratios o f capital accounts to assets.

5 Data fo r branches o f fo re ig n banks referred to in fo o tn o te 2 have been excluded in com puting this ratio fo r noninsured banks o f deposit and in to ta l colum ns.

N o te : F u rth e r in fo rm a tio n on the reports o f assets and lia b ilitie s o f banks m ay be fo u n d on pp. 187-188.

192 FEDERAL DEPOSIT INSURANCE CORPORATION

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),

DECEMBER 31, 1973 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK 

(Amounts in thousands of dollars)

Insured banks Noninsured banks

Asset, lia b ility , or capital account item T otal

Total

Members of 

Federal Reserve System

N ot 

members 

o f F.R. 

System

T otal

Banks

of

deposit2

N ondeposit

trust

T otal N a tio n a l1 State companies3

T o ta l assets ......................................................................................................................... 842,864,840 832,658,280 658,676,236 491,895,975 166,780,261 173,982,044 10,206,560 9,689,065 517,495

Cash, balances w ith o th e r banks, and cash item s in process o f

c o lle c t io n - t o t a l.............................................................................................

C urrency and c o i n ................................................................................................

Reserve w ith Federal Reserve banks (m em ber b a n k s )..............................

Demand balances w ith banks in U.S. (except A m erican branches o f

foreign b a n k s )..................................................................................................

O ther balances w ith banks in U nited S ta te s ................................................

Balances w ith banks in foreign c o u n tr ie s .....................................................

Cash item s in process o f c o lle c tio n .................................................................

119,245,022

10,798,936

27,820,742

31,493,835

3,061,435

1,302,544

44,767,530

116,939,181

10,768,844

27,820,742

30,128,768

2,771,041

7-87,960

44,661,826

100,272,336

8,164,766

27,820,742

18,615,450

1,849,094

656,885

43,165,399

70,885,395

6,273,007

20,056,056

13,183,032

1,469,928

423,723

29,479,649

29,386,941

1,891,759

7,764,686

5,432,418

379,166

233,162

13,685,750

16,666,845

2,604,078

0

11,513,318

921,947

131,075

1,496,427

2,305,841

30,092

0

1,365,067

290,394

514,584

105,704

2,197,599

29,290

0

1,274,624

273,410

514,584

105,691

108,242

802

0

90,443

16,984

0

13

S e c u ritie s -to ta l ..........................................................................................................

U.S. Treasury s e c u ritie s .....................................................................................

O bligations o f o ther U.S. G overnm ent agencies and c o r p s ....................

O bligations o f States and p o litica l subdivisions ........................................

O ther securities .....................................................................................................

189,847,368

58,847,237

29,312,133

95,498,183

6,189,815

188,230,092

58,429,170

28,971,546

94,878,191

5,951,185

137,123,690

41,497,424

19,144,404

72,077,049

4,404,813

104,712,317

30,965,652

15,072,219

55,262,683

3,411,763

32,411,373

10,531,772

4,072,185

16,814,366

993,050

51,106,402

16,931,746

9,827,142

22,801,142

1,546,372

1,617,276

418,067

340,587

619,992

238,630

1,413,303

406,573

336,157

499,323

171,250

203,973

11,494

4,430

120,669

67,380

Investm ent s e c u ritie s -to ta l ..............................................................................

U.S. T re a s u ry s e c u ritie s ..............................................................................

O b lig a tio n s o f o th e r U.S. G o v e rn m e n t a g en cies a n d c o r p s .............

O b lig a tio n s o f S ta te s a n d p o lit ic a l s u b d iv is io n s ...................................

O th e r s e c u ritie s .............................................................................................

181,188,344

5 5 ,7 1 1 ,3 2 7

2 7 ,8 7 8 ,8 0 1

9 1 ,8 4 7 ,8 7 4

5 ,7 5 0 ,3 4 2

179,574,763

5 5 ^ 9 3 ,3 0 0

2 7 ,5 3 8 ,2 1 4

9 1 ^ 2 7 , 8 8 2

5 ,5 1 5 ,3 6 7

128,553,677

3 8 ,3 7 3 ,3 3 8

1 7 ,7 2 8 ,8 0 2

6 8 ,4 7 9 ,0 8 3

3 £ 7 2 ,4 5 4

98,562,961

2 8 ,8 9 7 ,6 6 4

1 3 ,9 3 2 ,8 9 5

5 2 ,6 3 6 ,8 6 7

3 ,0 9 5 ,5 3 5

29,990,716

9 ,4 7 5 ,6 7 4

3 , 7 9 5 ,9 0 7

1 5 ,8 4 2 2 1 6

8 7 6 ,9 1 9

51,021,086 

1 6 ,9 1 9 ,9 6 2

9 ,8 0 9 ,4 1 2

2 2 ,7 4 8 ,7 9 9

1 ,5 4 2 £ 13

1,613,581 

4 1 8 ,0 2 7

3 4 0 ,5 8 7

6 1 9 ,9 9 2

2 3 4 7 5

1,409,648

4 0 6 ,5 7 3

3 3 6 ,1 5 7

4 9 9 ,3 2 3

1 6 7 ,5 9 5

203,933

1 1 ,4 5 4

4 ,4 3 0

1 2 0 ,6 6 9

6 7 ,3 8 0

T rading account s e c u ritie s -to ta l ....................................................................

U.S. T re a s u ry s e c u ritie s .................................................................................

O b lig a tio n s o f o th e r U.S. G o v e rn m e n t a g en cies a n d c o r p s .............

O b lig a tio n s o f S ta te s a n d p o lit ic a l s u b d iv is io n s ...................................

O th e r s e c u ritie s .............................................................................................

8,659,024 

3 ,1 3 5 J 9 10

1 ,4 3 3 ,3 3 2

3 ,6 5 0 ,3 0 9

4 3 9 ,4 7 3

8,655,329

3 ,1 3 5 ,8 7 0

1 ,4 3 3 ,3 3 2

3 ,6 5 0 ,3 0 9

4 3 5 ,8 1 8

8,570,013

3 ,1 2 4 ,0 8 6

1 ,4 1 5 ,6 0 2

3 ,5 9 7 ,9 6 6

4 3 2 ,3 5 9

6,149,356

2 ,0 6 7 ,9 8 8

1 ,1 3 9 ,3 2 4

2 , 6 2 5 ,8 1 6

3 1 6 2 2 8

2,420,657

1 ,0 5 6 ,0 9 8

2 7 6 2 7 8

9 7 2 ,1 5 0

1 1 6 ,1 3 1

85,316

1 1 ,7 8 4

1 7 ,7 8 0

5 2 ,3 4 3

3 ,4 5 9

3,695

4 0

0

0

3 ,6 5 5

3.655 

0

0

0

3 .6 5 5

40

4 0

0

0

0

Federal fu n d s sold and securities purchased under agreements to

re s e ll- to ta l.......................................................................................................

W ith dom estic com m ercial b a n k s ....................................................................

W ith brokers and dealers in se c u ritie s ............................................................

W ith o th e rs ...............................................................................................................

35,386,529

32,197,817

2,647,136

541,576

34,379,920

31,233,602

2,647,136

499,182

26,130,475

23,084,517

2,627,226

418,732

22,090,662

19,414,505

2,279,840

396,317

4,039,813

3,670,012

347,386

22,415

8,249,445

8,149,085

19,910

80,450

1,006,609

964,215

0

42,394

975,561

933,607

0

41,954

31,048

30,608

0

440

ASSETS AND LIABILITIES OF BANKS 193

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),

DECEMBER 31, 1973-CONTINUED 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK 

(Amounts in thousands of dollars)

Insured banks N oninsured banks

Asset, lia b ility , or capital acco u nt item Total

T otal

Members of 

Federal Reserve System

N o t 

members 

o f F.R. 

System

T o ta l

Banks

o f

deposit2

N u n iie p u sii

tru s t

T otal N a tio n a l1 State com panies3

464,190,706 459,755,788 366,957,947 273,169,500 93,788,447 92,797,841 4,434 ,9 1 8 4 ,389,727 45,191

Real estate lo a n s - to ta l.................................................................................... 119,068,102 118,787,181 8 7 ,446,204 67,584,063 19,862,141 31,340,977 280,921 265,607 15,314

S e c u re d b y f a r m la n d ................................................................................. 5 ,4 4 1 £ 0 6 5 ,4 2 0 ,1 9 0 2 ,4 4 9 ,3 4 3 1 £ 5 9 , 7 0 1 4 8 9 ,6 4 2 2 £ 7 0 ,8 4 7 2 1 ,7 1 6 2 1 2 8 0 4 3 6

S e c u re d b y re s id e n tia l p r o p e rtie s :

S e c u re d b y 1 - to 4 - f a m i l y r e s id e n tia l p ro p e rtie s :

9 8 2 ,3 5 4 9 7 6 ,1 5 4 3 7 ,4 5 0 3 7 ,3 9 4 5 6 In s u re d b y F e d e ra l H o u s in g A d m in is t r a t io n ....................... 6 £ 4 0 2 2 9 6 J 9 0 2 ,7 7 9 5 £ 2 6 ,6 2 5 4 £ 4 4 2 7 1

G u a ra n te e d b y V e te ra n s A d m i n i s t r a t i o n ............................ 3 2 9 6 ,9 5 3 3 2 5 3 ,7 3 8 2 ,8 1 6 ,8 5 6 2 ,3 0 7 ,4 9 5 5 0 9 ,3 6 1 4 3 6 ,8 8 2 4 3 2 1 5 4 3 ,1 7 7 3 8

N o t in s u re d o r g u a ra n te e d b y F H A o r V A .......................... 5 7 ,7 6 1 2 6 5 5 7 ,6 3 9 ,3 0 0 4 1 £ 0 8 , 8 2 8 3 3 ,0 9 5 2 1 4 8 ,8 1 8 ,6 1 4 1 5 ,7 3 0 ,4 7 2 12 1 £ 6 5 1 1 3 ,3 1 7 8 ,6 4 8

S e c u re d b y m u lt if a m ily ( 5 o r m o r e ) r e s id e n tia l p r o p e rtie s :

4 2 1 ,8 9 8 1 1 5 ,6 2 2 1 2 0 3 1 2 0 3 0

In s u re d b y F e d e ra l H o u s in g A d m in is t r a t io n ....................... 1 ,2 9 4 ,3 9 4 1 2 9 3 ,1 9 1 1 ,1 7 7 ,5 6 9 7 5 5 ,6 7 1

N o t in s u re d b y F H A .................................................................. 5 ,6 3 7 ,7 7 4 5 ,6 3 6 2 2 9 4 ,6 3 2 ,5 2 8 3 , 0 4 5 £ 4 8 1 ,5 8 6 ,5 8 0 1 ,0 0 3 ,7 0 1 1 ,5 4 5 1 ,5 4 5 0

S e c u re d b y o t h e r p r o p e r t ie s .................................................................. 3 8 ,6 9 5 ,5 8 1 3 8 ,6 4 1 ,7 5 4 2 8 ,5 3 4 ,4 5 5 2 1 ,4 7 5 ,7 6 3 7 ,0 5 8 ,6 9 2 1 0 ,1 0 7 ,2 9 9 5 3 ,8 2 7 4 7 ,6 9 1 6 ,1 3 6

Loans to dom estic com m ercial and foreign b a n k s ............................... 10,285,157 9,155,496 8,754,285 5,245,445 3,508,840 401,211 1,129,661 1,129,661 0

Loans to oth e r financial in s titu tio n s ........................................................... 30,660,908 30,540,982 29,053,501 18,922,667 10,130,834 1,467,481 119,926 119,926 0

Loans to brokers and dealers in securities .............................................. 7,674,879 7,625,741 7,497,610 3,798,411 3,699,411 128,131 49,138 48,733 405

O ther loans fo r purchasing o r carrying s e c u ritie s ................................. 4 ,329,804 4,300,946 3 ,666,884 2,790,396 876,488 6 34,062 28,858 25,588 3,270

Loans to farm ers (excluding loans on real e s ta te )................................. 17,333,719 17,150,320 10,229,149 8,858,182 1,370,967 6,921,171 183,399 182,848 551

Com m ercial and industrial lo a n s(in cl. open m a rke t p a p e r)............... 160,772,133 158,688,202 134,920,689 98,899,649 36,021,040 23,767,513 2,083,931 2 ,067,562 16,369

Loans to in d iv id u a ls - to ta l............................................................................ 100,791,866 100,382,510 73,324,942 58,187,165 15,137,777 27,057,568 409,356 406,148 3,208

Passenger a u to m o b ile in s ta lm e n t lo a n s .............................................. 3 3 ,6 8 7 ,5 7 4 3 3 ,4 7 7 ,1 3 2 2 3 ,0 2 5 ,1 9 0 1 9 ,0 0 0 2 7 1 4 , 0 2 4 £ 1 9 1 0 ,4 5 1 £ 4 2 2 1 0 ,4 4 2 2 0 9 2 3 7 1 2 0 5

C re d it c a rd s a n d r e la te d p la n s :

1 ,1 9 1 ,8 9 3 6 7 7 ,8 6 5 5 0 1 5 0 1 0 R e ta il (c ha rg e a c c o u n t) c r e d it c a rd p la n s .................................... 6 ,8 7 9 ,0 9 4 6 ,8 7 8 ,5 9 3 6 2 0 0 ,7 2 8 5 ,0 0 8 ,8 3 5

C h e c k c r e d it a n d re v o lv in g c r e d it p l a n s ...................................... 2 2 6 2 ,7 6 0 2 2 6 2 ,7 0 0 1 £ 2 5 , 7 2 7 1 ,1 4 8 ,4 2 4 7 7 7 ,3 0 3 3 3 6 £ 7 3 6 0 6 0 0

O th e r r e ta il c o n s u m e r in s ta lm e n t lo a n s :

2 ,2 9 8 ,0 3 2 1 ,8 6 4 1 ,8 6 4 0 M o b ile h o m e s , n o t in c lu d in g tr a v e l t r a i l e r s ............................... 8 ,3 7 3 ,1 5 0 8 ,3 7 1 2 8 6 6 , 0 7 3 2 5 4 5 ,1 0 1 ,0 7 8 9 7 2 ,1 7 6

O th e r r e ta il c o n s u m e r g o o d s ........................................................... 6 2 2 7 ,3 7 8 6 2 0 6 ,8 5 1 4 ,1 6 5 ,6 7 0 3 ,5 0 8 ,4 9 8 6 5 7 ,1 7 2 2 ,0 4 1 ,1 8 1 2 0 ,5 2 7 2 0 £ 1 7 2 1 0

R e s id e n tia l re p a ir a n d m o d e rn iz a tio n in s ta lm e n t lo a n s ................ 4 £ 1 5 ,0 4 3 4 „9 0 6 J 9 4 0 3 ,6 0 5 ,3 7 8 2 , 8 3 1 2 9 0 7 7 4 ,0 8 8 1 ,3 0 1 ,5 6 2 8 ,1 0 3 7 £ 8 1 1 2 2

O th e r in s ta lm e n t lo a n s f o r p e rs o n a l e x p e n d itu r e s .......................... 1 4 ,6 4 3 J ) 5 7 1 4 ,5 3 8 ,0 4 8 1 0 2 0 4 , 1 6 6 7 £ 7 6 ,1 0 8 2 2 2 8 ,0 5 8 4 ,3 3 3 ,8 8 2 1 0 5 £ 0 9 1 0 5 2 4 2 6 6 7

S in g le -p a y m e n t lo a n s f o r p e rs o n a l e x p e n d itu r e s ............................ 2 3 ,8 0 2 £ 1 0 2 3 ,7 4 0 £ 6 0 1 8 ,1 2 4 ,8 2 9 1 3 ,6 1 2 ,6 6 1 4 ,5 1 2 ,1 6 8 5 ,6 1 6 ,1 3 1 6 1 £ 5 0 6 0 £ 4 6 1,0 0 4

A ll o th e r loans (in cluding o v e rd ra fts )........................................................ 13,274,138 13,124,410 12,064,683 8,883,734 3,180,949 1,059,727 149,728 143,654 6,074

T o ta l loans and securities ................................................................ 689,424,603 682,365,800 530,212,112 399,972,479 1 30,239,633 152,153,688 7,058,803 6,778,591 280,212

194 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Bank premises, furniture and fixtures, and other assets representing

bank prem ises...........................................................................................

Real estate owned other than bank p rem ises.............................................

Investments in subsidiaries not consolidated .............................................

Customers' liability on acceptances outstanding........................................

Other assets............................................................................................................

Total liabilities, reserves, and capital accounts..................................................

Business and personal d e p o s its -to ta l............................................................

Individuals, partnerships, and corpo ratio n s-d e m an d ......................

Individuals, partnerships, and c o rp o ra tio n s -tim e ..............................

S avings d e p o s its ........................................................................................

D e p o s its a c c u m u la te d f o r p a y m e n t o f p e rs o n a l lo a n s ..................

O th e r d e p o s its o f in d iv id u a ls , p a rtn e rs h ip s , a n d c o r p s ...............

Certified and officers' checks, letters of credit, travelers'

checks, etc...................................................................................................

Government d e p o s its -to ta l..............................................................................

United States G overnm ent-dem and.......................................................

United States G overnm ent-tim e...............................................................

States and political subdivisions-dem and.............................................

States and political subdivisions-time ..................................................

Domestic interbank deposits-total ...............................................................

Commercial banks in the United States-dem and................................

Commercial banks in the United S ta te s -tim e ......................................

Mutual savings banks in the United S ta te s -d e m a n d .........................

Mutual savings banks in the United S ta te s -tim e ................................

Foreign government and bank d e p o s its -to ta l.............................................

Foreign governments, central banks, e tc .-d e m a n d ...........................

Foreign governments, central banks, e tc .-tim e ...................................

Banks in foreign co untries-dem and.......................................................

Banks in foreign countries-tim e ............................................................

Total deposits ...................................................................................

D e m a n d ........................................................................................

T im e ................................................................................................

Miscellaneous lia b ilitie s -to ta l............................................................................

Federal funds purchased (borrowed) and securities sold under

agreements to repurchase......................................................................

Other liabilities for borrowed m o n e y .....................................................

Mortgage indebtedness.................................................................................

Acceptances outstanding..............................................................................

Other liab ilities................................................................................................

Total lia b ilitie s ...................................................................................

M inority interest in consolidated subsidiaries.............................................

12,848,900

448,976

1,411,695

4,428,841

15,056,803

12,788,763

433,860

1,403,400

4,356,527

14,370,749

9,917,742

281,670

1,387,751

4,122,780

12,481,845

7,952,472

199,266

1,063,930

2,848,745

8,973,688

1,965,270

82,404

323,821

1,274,035

3,508,157

2,871,021

152,190

15,649

233,747

1,888,904

60,137

15,116

8,295

72,314

686,054

43,853

3,737

7,559

72,314

585,412

16,284

11,379

736

0

100,642

842,864,840 832,658,280 658,676,236 491,895,975 166,780,261 173,982,044 10,206,560 9 ,689,065 517,495

558,718,160

232,903,885

314,375,984

1 2 8 ,1 7 1 ,3 8 2

5 0 7 ,3 6 0

1 8 5 ,6 9 7 ^ 4 2

555,151,799

231,956,880 

312,332,827 

1 2 7 ,8 1 8 ,4 3 4

5 0 3 ,4 6 8

1 8 4 ,0 1 0 £ 2 5

423,114,783

179,522,421

234,628,256

9 3 ,9 0 2 ,5 6 5

3 5 1 ,5 3 6

1 4 0 ,3 7 4 ,1 5 5

323,582,313

135,989,064

181,638,275

7 3 ,5 9 2 ,3 1 1

2 8 7 ,7 5 1

1 0 7 ,7 5 8 2 1 3

99,532,470

43,533,357 

52,989,981 

2 0 ,3 1 0 2 5 4

6 3 ,7 8 5

3 2 ,6 1 5 £ 4 2

132,037,016

52,434,459

77,704,571

3 3 2 1 5 , 8 6 9

1 5 1 2 3 2

4 3 ,6 3 6 ,7 7 0

3,566,361

947,005

2,043,157

3 5 2 2 4 8

3 ,8 9 2

1 ,6 8 6 ,3 1 7

3,533,484

914,618

2,042,907

3 5 2 2 4 8

3 ,8 8 5

1 ,6 8 6 ,0 7 4

32,877

32,387

250

0

7

2 4 3

11,438,291 10,862,092 8,964,106 5,954,974 3,009,132 1,897,986 576,199 575,959 240

73,949,775

9,907,570

442,352

18,920,145

44,679,708

73,660,934

9,887,668

440,641

18,746,900

44,585,725

55,254,851

8,278,902

297,988

13,290,255

33,387,706

43,401,722

5,960,880

237,353

10,559,680

26,643,809

11,853,129

2,318,022

60,635

2,730,575

6,743,897

18,406,083

1,608,766

142,653

5,456,645

11,198,019

288,841

19,902

1,711

173,245

93,983

288,034

19,096

1,711

173,245

93,982

807

806

0

0

1

37,983,592

30,025,216

6,022,670

1,280,055

655,651

37,444,862

29,861,879

5,783,907

1,155,682

643,394

35,539,220

28,741,151

5,095,183

1,067,474

635,412

21,521,306

17,168,235

3,494,708

528,429

329,934

14,017,914

11,572,916

1,600,475

539,045

305,478

1,905,642

1,120,728

688,724

88,208

7,982

538,730

163,337

238,763

124,373

12,257

538,730

163,337

238,763

124,373

12,257

0

0

0

0

0

16,924,250

1,625,473

9,396,784

5,586,170

315,823

15,361,830

1,355,645

8,506,931

5,279,635

219,619

14,883,856

1,332,627

8,366,081

5,001,157

183,991

8,866,288

746,342

5,309,319

2,688,220

122,407

6,017,568

586,285

3,056,762

2,312,937

61,584

477,974

23,018

140,850

278,478

35,628

1,562,420

269,828

889,853

306,535

96,204

1,559,856

269,329

887,788

306,535

96,204

2,564

499

2,065

0

0

687,575,777

3 1 1 ,6 8 6 ,8 0 5

3 7 5 , 8 8 8 ^ 7 2

681,619,425

3 0 9 ,1 0 6 ,3 8 1

3 7 2 ,5 1 3 ,0 4 4

528,792,710

2 4 6 ,1 9 8 ,0 9 3

2 8 2 ,5 9 4 ,6 1 7

397,371,629

1 7 9 ,5 9 5 ,8 2 4

2 1 7 ,7 7 5 ,8 0 5

131,421,081

6 6 ,6 0 2 2 6 9

6 4 2 1 8 , 8 1 2

152,826,715 

6 2 2 0 8 2 8 8

8 9 J 9 1 8 ,4 2 7

5,956,352

2 ,5 8 0 ,4 2 4

3 J 7 5 2 2 8

5,920,104

2 ,5 4 6 ,4 9 2

3 ,3 7 3 ,6 1 2

36,248

3 3 2 3 2

2 ,3 1 6

89,007,922 85,386,177 78,710,711 56,673,994 22,036,717 6,675,466 3,621,745 3,345,686 276,059

51,238,219

7,961,349

774,486

4,561,346

24,472,522

50,480,996

7,179,644

771,519

4,486,309

22,467,709

48,731,393

6,879,214

588,460

4 ,252,392

18,259,252

35,974,569

3,721,870

459,432

2,922,580

13,595,543

12,756,824

3,157,344

129,028

1,329,812

4,663,709

1,749,603

300,430

183,059

233,917

4,208,457

757,223

781,705

2,967

75,037

2,004,813

757,223

765,867

1,820

75,037

1,745,739

0

15,838

1,147

0

259,074

776,583,699 767,005,602 607,503,421 454,045,623 153,457,798 159,502,181 9 ,578,097 9 ,265,790 312,307

6,267 5,473 3,076 3,057 19 2,397 794 0 794

ASSETS AND LIABI LITIES OF BANKS 195

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 3 - C O N T IN U E D

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK

(Amounts in thousands of dollars)

Insured banks N oninsured banks

Asset, lia b ility , or capital account item Total

T otal

Members of 

Federal Reserve System

N ot 

members 

of F.R. 

System

Total

Banks

of

deposit2

N ondeposit

tru st

Total N ational1 State companies3

Reserves on loans and s e c u ritie s -to ta l................................................................. 7,831,856 7,808,584 6,418,606 4,712,722 1,705,884 1,389,978 23,272 23,123 149

Reserve fo r bad debt losses on loans............................................................... 7,548,123 7,526,744 6,244,458 4,592,985 1,651,473 1,282,286 21,379 21,280 99

Other reserves on loans ..................................................................................... 108,201 107,994 53,667 41,105 12,562 54,327 207 187 20

Reserves on se curities.......................................................................................... 175,532 173,846 120,481 78,632 41,849 53,365 1,686 1,656 30

Capital a c c o u n ts -to ta l............................................................................................... 58,443,018 57,838,621 44,751,133 33,134,573 11,616,560 13,087,488 604,397 400,152 204,245

Capital notes and d e b e n tu re s ........................................................................... 4,236,435 4,117,351 3,333,416 2,199,976 1,133,440 783,935 119,084 118,879 205

E quity c a p ita l-to ta l............................................................................................ 54,206,583 53,721,270 41,417,717 30,934,597 10,483,120 12,303,553 485,313 281,273 204,040

P re fe rre d s t o c k ............................................................................................... 7 0 ,7 6 2 6 5 ,6 5 0 4 7 ,0 1 0 3 6 ,5 3 0 1 0 ,4 8 0 1 8 ,6 4 0 5 ,1 1 2 4 ,8 8 8 2 2 4

C o m m o n s t o c k ............................................................................................... 1 3 ,9 4 4 ,1 4 3 13 ,8 4 6 ,0 7 1 1 0 ,5 1 8 ,9 5 5 7 2 0 3 ,6 6 7 2 , 6 1 5 2 8 8 3 ,3 2 7 ,1 1 6 9 8 ,0 7 2 5 0 ,6 7 6 4 7 ,3 9 6

S u rp lu s .............................................................................................................. 2 3 ,7 3 4 ,0 7 5 2 3 ,5 9 3 ,3 1 1 1 8 ,3 0 2 ^ 1 7 1 3 ,5 1 2 ,7 1 1 4 ,7 8 9 ,5 0 6 5 2 9 1 ,0 9 4 1 4 0 ,7 6 4 1 0 7 2 6 8 3 2 ,7 9 6

U n d iv id e d p r o f i t s .......................................................................................... 1 5 ,5 4 8 2 9 6 1 5 ,3 6 1 ,8 5 7 11 £ 1 8 2 6 8 8 2 9 7 ,6 2 8 2 2 2 0 ,6 4 0 3 ,4 4 3 ,5 8 9 1 8 6 ,4 3 9 7 4 ,1 0 7 1 1 2 ,3 3 2

R eserve f o r c o n tin g e n c ie s a n d o th e r c a p ita l r e s e rv e s ......................... 9 0 9 ,3 0 7 8 5 4 ,3 8 1 6 3 1 2 6 7 4 8 4 ,0 6 1 1 4 7 2 0 6 2 2 3 ,1 1 4 5 4 ,9 2 6 4 3 ,6 3 4 1 1 ,2 9 2

P E R C EN TAG ES

Of to ta l assets:

Cash and balances w ith o th e r b a nks...................................................................... 14.1% 14.0% 15.2% 14.4% 17.6% 9.6% 22.6% 22.7% 20.9%

U.S. Treasury securities and obligations o f other U.S. G overnm ent

agencies and c o rp o ra tio n s ................................................................................... 9.9 9.9 8.5 8.7 8.0 15.4 7.4 7.7 3.1

Other s e c u ritie s ........................................................................................................... 12.6 12.7 12.3 12.6 11.5 14.0 8.4 6.9 36.3

Loans (in cluding federal funds sold and securities

purchased under agreements to r e s e ll) .......................................................... 59.3 59.3 59.7 60.0 58.7 58.1 53.3 55.4 14.7

Other assets................................................................................................................... 4.1 4.0 4.3 4.3 4.3 3.0 8.2 7.4 24.9

Total capital accounts4 ............................................................................................ 7.0 7.0 6.8 6.8 7.0 7.5 15.4s 11.35 39.5

O f to ta l assets other than cash and U.S. Treasury securities:

19.65 14.45 51.3 Total capital accounts4 ............................................................................................ 8.8 8.8 8.6 8.5 9.1 9.3

N um ber of banks .............................................................................................................. 14,194 13,976 5,737 4,661 1,076 8,239 218 147 71

1, 2, 3, 4, 5gee notes t0 ta b|e 106.

Note: F urther in fo rm a tio n on the reports o f assets and liabilities o f banks may be found on pp. 187-188.

196 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 108. ASSETS AND LIABI LITIES OF ALL MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE 30, 1973, AND DECEMBER 31, 1973 

BANKS GROUPED BY INSURANCE STATUS 

(Amounts in thousands of dollars)

Asset, lia b ility , or surplus account item

June 3 0 ,1 9 7 3 December 3 1 ,1 9 7 3

T otal Insured Non insured T otal Insured Noninsured

T o ta l assets ....................................................................................................................................................... 105,671,736 889,955 13,781,781 106,660,179 93,012,515 13,647,664

Cash, balances w ith banks, and c o lle ctio n ite m s -to ta l ................................................................ 1,786,019 1,660,473 125,546 1,978,592 1,847,776 130,816

Currency and c o in ................................................................................................................................ 246,178 209,160 37,018 267,972 226,905 41,067

Demand balances w ith banks in the U nited S ta te s .................................................................. 651,259 585,415 65,844 779,057 711,172 67,885

O ther balances w ith banks in the U nited S ta te s ....................................................................... 759,682 754,987 4,695 822,933 817,495 5,438

Cash item s in process o f c o lle c tio n ................................................................................................ 128,900 110,911 17,989 108,630 92,204 16,426

S e c u ritie s -to ta l.......................................................................................................................................... 26,968,850 23,106,047 3,862,803 25,231,557 21,871,412 3,360,145

United States G overnm ent and agency s e c u r itie s - to ta l........................................................ 7,740,724 6,540,044 1,200,680 6,993,564 5,971,200 1,022,364

S e c u ritie s m a tu rin g in 1 y e a r o r le s s ....................................................................................... 1 ,1 6 3 ,3 1 6 9 0 3 ,7 1 1 2 5 9 ,6 0 5 1 ,0 6 8 ,6 6 2 8 3 1 ,7 1 9 2 3 6 2 4 3

S e c u ritie s m a tu rin g in 1 to 5 y e a r s ......................................................................................... 2 ,3 7 4 ,4 5 7 1 ,8 3 0 ,0 3 3 5 4 4 ,4 2 4 1 2 4 5 ,3 2 8 1 ,5 1 3 ,4 7 6 4 3 1 ,8 5 2

S e c u ritie s m a tu rin g in 5 to 1 0 y e a r s ...................................................................................... 1 ^ 2 5 ,1 0 5 1 ,0 4 0 ,5 8 7 1 8 4 ,5 1 8 9 4 3 ,3 7 7 7 8 9 2 3 6 1 5 3,44 1

S e c u ritie s m a tu rin g a f te r 1 0 y e a rs ........................................................................................... 2 J 9 7 7 ,8 4 6 2 ,7 6 5 ,7 1 3 2 1 2 ,1 3 3 3 ,0 3 6 ,1 9 7 2 ,8 3 6 ,0 6 9 2 0 0 ,1 2 8

State, co u n ty, and m unicipal o b lig a tio n s ................................................................................... 1,176,827 1,149,267 27,560 936,067 907,013 29,054

Corporate b o n d s................................................................................................................................... 12,268,524 10,894,703 1,373,821 11,205,330 10,026,920 1,178,410

Other bonds, notes, and d e b e n tu re s............................................................................................. 1,904,853 1,327,684 577,169 2,146,444 1,713,867 432,577

Corporate s t o c k - t o t a l............... ................................................................................................... 3,877,922 3,194,349 683,573 3,950,152 3,252,412 697,740

B a n k .................................................................................................................................................. 5 6 7 ,2 5 2 3 6 1 ,0 3 3 2 0 6 2 1 9 5 5 5 ,0 2 0 3 6 4 ,0 6 6 1 9 0 ,9 5 4

O th e r.................................................................................................................................................. 3 ,3 1 0 ,6 7 0 2 , 8 3 3 ,3 1 6 4 7 7 ,3 5 4 3 2 9 5 ,1 3 2 2 ,8 8 8 ,3 4 6 5 0 6 ,7 8 6

Federal funds sold and securities purchased under agreements to resell.................................. 1,632,484 1,299,094 333,390 1,509,493 1,252,753 256,740

O ther lo a n s - to ta l...................................................................................................................................... 73,012,193 63,734,455 9,277,738 75,586,716 65,870,714 9,716,002

Real estate lo a n s -to ta l .................................................................................................................... 70,633,836 61,759,690 8,874,146 73,229,985 63,946,513 9,283,472

C o n s tru c tio n l o a n s ...................................................................................................................... 1 ,3 0 3 ,6 0 5 1 ,0 6 3 2 7 7 2 3 9 ,6 2 8 1 ,3 1 0 ,5 7 2 1 , 0 9 0 2 6 2 2 2 0 ,3 1 0

S e c u re d b y fa r m la n d .................................................................................................................... 5 8 ,5 7 7 5 0 ,4 8 7 8 ,0 9 0 6 3 ,8 4 1 5 1 ,1 6 0 12 ,6 81

S e cu re d b y re s id e n tia l p r o p e r tie s :...........................................................................................

S e c u re d b y 1 - to 4 - fa m ily r e s id e n tia l p ro p e rtie s :

In s u re d b y F e d e ra l H o u s in g A d m in is tr a tio n .......................................................... 1 4 ,3 2 9 ,7 6 1 1 3 ,2 0 1 ,0 8 7 1 ,1 2 8 ,6 7 4 1 3 2 1 6 ,8 2 6 1 2 ,8 2 8 ,7 7 5 1 ,0 8 8 ,0 5 1

G u a ra n te e d b y V e te ra n s A d m in is tr a tio n .................................................................. 1 2 2 1 4 ,9 1 2 1 1 ,6 9 6 ,3 0 8 1 2 1 8 ,6 0 4 1 2 ,9 4 5 ,5 7 0 1 1 ,7 2 8 2 4 9 1 ,2 1 7 ,3 2 1

N o t in s u re d o r g u a ra n te e d b y F H A o r V A ............................................................. 2 0 ^ 6 9 ,6 6 5 1 6 ,0 0 2 2 8 8 4 2 6 7 ,3 7 7 2 1 ,6 5 4 2 7 9 1 7 ,0 8 7 ,5 3 3 4 ,5 6 6 ,7 4 6

S e c u re d b y m u ltifa m ily ( 5 o r m o re ) r e s id e n tia l p ro p e rtie s :

In s u re d b y F e d e ra l H o u s in g A d m in is tr a tio n ........................................................... 1 ,5 1 2 ,6 7 8 1 ,4 5 1 2 8 0 6 0 ,6 9 8 1 ,5 8 9 ,0 5 5 1 ,5 2 3 ,7 5 1 6 5 ,3 0 4

N o t in s u re d b y F H A ..................................................................................................... 9 ,4 0 9 ,4 1 3 8 ,8 5 5 ,4 4 5 5 5 3 ,9 6 8 1 0 ,0 5 3 ,8 4 6 9 ,4 1 6 ,8 8 7 6 3 6 2 5 9

Secured by o th e r properties....................................................................................................... 10,835,225 9,438,118 1,397,107 11,695,996 10,219,896 1,476,100

Loans to dom estic com m ercial and foreign banks..................................................................... 30,628 29,477 1,151 15,018 13,679 1,339

Loans to other fin a n cia l in s titu tio n s .............................................................................................. 41,443 40,847 596 29,501 29,473 28

Loans to brokers and dealers in securities ................................................................................. 445 233 212 4,441 4,441 0

O ther loans fo r purchasing o r carrying s e c u ritie s ..................................................................... 3,310 2,824 486 2,630 2,221 409

Loans to farm ers (excluding loans on real e s ta te ).................................................................... 1,367 1,367 0 1,323 1,323 0

Com mercial and industrial lo a n s..................................................................................................... 299,863 286,078 13,785 185,628 173,322 12,306

ASSETS AND LIABI LITIES OF BANKS 197

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 108. ASSETS AND LIABILITIES OF ALL MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE 30, 1973, AND DECEMBER 31, 1973-CONTINUED 

BANKS GROUPED BY INSURANCE STATUS 

(Amounts in thousands of dollars)

Asset, lia b ility , or surplus a ccount item

June 3 0 ,1 9 7 3 December 3 1 ,1 9 7 3

T otal Insured Noninsured T otal Insured Noninsured

1 nanc tn inHiv/iHiiak fn r rtercnnal evne n H itu rfts............................................................................ 1.892,512 1,554,867 337,645 2,036,847 1,665,365 3 71,482

A ll o th e r loans (in clu d in g o v e rd ra fts )............................................................................................. 108,789 59,072 49,717 8 1 ,3 4 3 3 4 ,3 /7 46,966

T otal loans and securities........................................................................................................ 101,613,527 139,596 13,473,931 102,327,766 88,994,879 13,332,887

Bank premises, fu rn itu re and fix tu re s , and o th e r assets representing bank prem ises. . . 791,484 702,394 89,090 860,363 760,289 100,074

Real estate ow ned o th e r than bank p re m is e s .............................................................................. 196,746 184,593 12,153 195,478 180,671 14,807

Investm ents in subsidiaries n o t co n solidated................................................................................. 76,532 73,628 2,904 66,544 64,883 1,661

Other a s s e ts ............................................................................................................................................. 1,207,428 129,271 78,157 1,231,436 1,164,017 67,419

Total liabilities and surplus accounts .......................................................................................................... 105,671,736 91,889,955 13,781,781 106,660,179 93,012,515 13,647,664

D ep o s its-to tal................................................................................................................................................ 96,454,252 84,175,205 12,279,047 97,166,571 84,890,128 12,276,443

Savings d e p o s its ...................................................................................................................................... 69,759,098 60,858,243 8,900,855 66,119,298 57,591,849 8,527,449

Deposits accum ulated fo r paym ent o f personal lo a n s ............................................................... 8,551 36 8,515 3,195 476 2,719

Fixed m a tu rity and oth e r tim e d e p o s its ........................................................................................ 25,756,518 22,402,480 3,354,038 30,154,140 26,416,246 3,737,894

S avings a n d tim e d e p o s it s - t o t a l................................................................................................ 9 5 ,5 2 4 ,1 6 7 8 3 2 6 0 , 7 5 9 1 2 2 6 3 ,4 0 8 9 6 2 7 6 , 6 3 3 8 4 ,0 0 8 ,5 7 1 1 2 2 6 8 ,0 6 2

D e m a n d d e p o s it s - t o t a l.................................................................................................................. 9 3 0 ,0 8 5 9 1 4 ,4 4 6 1 5 ,6 3 9 8 8 9 J 9 3 8 8 8 1 ,5 5 7 8 ,3 8 1

Miscellaneous lia b ilitie s -to ta l.................................................................................................................. 1,889,092 1,419,355 469,737 1,902,020 1,609,538 292,482

Securities sold under agreements to re p u rc h a s e ......................................................................... 22,157 22,157 0 26,089 26,089 0

O ther b o rro w in g s ................................................................................................................................... 207,315 203,446 3,869 455,370 445,901 9,469

O ther lia b ilitie s ...................................................................................................................................... 1,659,620 1,193,752 465,868 1,420,561 1,137,548 283,013

Total liabilities ......................................................................................................................... 98,343,344 85,594,560 12,748,784 99,068,591 86,499,666 12,568,925

M inority interest in consolidated subsidiaries ................................................................................... 0 0 0 0 0 0

Surplus a c c o u n ts -to ta l.............................................................................................................................. 7,328,392 6,295,395 1,032,997 7,591,588 6,512,849 1,078,739

Capital notes and d e b e n tu re s ............................................................................................................. 87,874 81,847 6,027 121,033 114,953 6,080

O ther surplus a c c o u n ts ......................................................................................................................... 7,240,518 6,213,548 1,026,970 7,470,555 6,397,896 1,072,659

PERC ENTAG ES

Of total assets:

Cash and balances w ith oth e r banks ..................................................................................................... 1.7% 1.8% .9% 1.9% 2.0% 1.0%

U.S. G overnm ent and agency securities .............................................................................................. 7.3 7.1 8.7 6.6 6.4 7.5

Other s e c u ritie s .............................................................................................................................................. 18.2 18.0 19.3 17.1 17.1 17.1

Loans (in cluding Federal funds sold and securities purchased under

72.3 72.2 73.1 agreements to re s e ll)....................................................................................................................... 70.6 70.8 69.7

2.2 2.3 1.3 2.2 2.3 1.3

T otal surplus a c c o u n ts ................................................................................................................................. 6.9 6.9 7.5 7.1 7.0 7.9

Of total assets other than cash and U.S. Government obligations:

T otal surplus accounts .............................................................................................................................. 7.6 7.5 8.3 7.8 7.6 8.6

N um ber o f banks ................................................................................................................................................ 484 324 160 482 322 160

198 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 109. ASSETS AND LIABI LITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1963, 1969-1973 

(Amounts in thousands of dollars)

Asset, lia b ility , o r capital account item Dec. 2 8 ,1 9 6 3 Dec. 3 1 ,1 9 6 9 1 Dec. 3 1 ,1 9 7 0 Dec. 3 1 ,1 9 7 1 Dec. 3 1 ,1 9 7 2 Dec. 3 1 ,1 9 7 3

T o ta l assets................................................................................................................................................................... 314,785,6592 530,714,711 576,350,801 639,903,322 737,699,385 (^832,65 8,280

Cash, balances w ith banks, and c o lle c tio n ite m s -to ta l ........................................................................ 50,445,462 89,355,129 93,048,095 98,690,700 111,844,113 116,939,181

C urrency and c o i n ....................................................................................................................................... 4,053,057 7,346,973 7,084,430 7,591,590 8,703,008 10,768,844

Reserve w ith Federal Reserve banks (m em ber b a n k s )...................................................................... 17,149,613 21,452,826 23,325,123 27,482,817 26,074,890 27,820,742

Demand balances w ith banks in the U.S. (except A m erican branches o f foreign b a n k s ). . . 11,644,517 19,389,950 21,088,737 21,962,456 28,156,064 30,128,768

O ther balances w ith banks in th e U.S..................................................................................................... 367,817 230,150 1,401,661 2,427,914 2,783,379 2,771,041

Balances w ith banks in fo re ig n c o u n tr ie s ............................................................................................ 298,992 320,921 395,356 567,033 739,928 787,960

Cash item s in process o f c o lle c tio n ....................................................................................................... 16,931,466 40,594,309 39,752,788 38,658,890 45,38 6 ,8 44 44,661,826

Investm ent s e c u r itie s - to ta l............................................................................................................................. 97,472,029 122,203,185 141,554,863 163,859,514 178,632,700 179,574,763

U.S. Treasury s e c u ritie s ............................................................................................................................. 62,811,737 53,262,588 58,880,431 62,696,667 64,709,715 55,293,300

Securities o f o th e r U.S. G overnm ent agencies and c o rp o ra tio n s .................................................. 3,503,243 9,239,140 12,481,059 17,071,836 21,156,678 27,538,214

O bligations o f States and p o litic a l sub d ivisio n s.................................................................................. 2 9 ,611,314 57,572,607 6 7,414,393 80,135,021 8 7 ,418,538 91,227,882

O ther s e c u r itie s ............................................................................................................................................ 1,545,735 2,128,850 2,778,980 3,955,990 5,347,769 5,515,367

Trading a cco u n t securities3 ............................................................................................................................. 3,181,756 5,664,059 5,307,564 5,12 8,096 8,655,329

Federal fu n d s sold4 ............................................................................................................................................. 9,712,405 15,952,321 19,643,272 25,634,862 34,379,920

O ther lo a n s - t o t a l............................................................................................................................................... 158,928,1782 286,751,602 298,189,504 328,225,896 388,902,133 459,755,788

Real estate lo a n s - to ta l................................................................................................................................ 39,088,205 70,325,953 73,053,364 82,314,290 99,086,276 118,787,181

S e c u re d b y f a r m la n d ............................................................................................................................. 2 , 3 0 3 2 5 1 3 2 9 2 ,9 3 1 4 ,3 1 9 ,3 5 2 4 , 1 7 3 ,7 2 6 4 , 7 5 2 2 7 0 5 ,4 2 0 ,1 9 0

S e c u re d b y r e s id e n tia l p r o p e rtie s :

S e c u re d b y 1 - to 4 - fa m ily r e s id e n tia l p r o p e rtie s :

In s u re d b y F e d e ra l H o u s in g A d m in is t r a t io n ................................................................... 7 ,0 4 7 ,2 3 8 7 ^ 6 2 ,0 2 3 7 , 3 0 2 2 8 6 7 , 4 7 6 2 4 3 7 2 3 6 ,3 4 6 6 2 0 2 ,7 7 9

G u a ra n te e d b y V e te ra n s A d m in is tr a tio n ........................................................................... 2 ,8 1 7 ,1 5 2 2 , 5 9 6 2 6 1 2 ,5 6 3 ,4 7 5 2 2 6 6 ,3 7 8 3 , 1 8 1 ,8 7 6 3 2 5 3 ,7 3 8

N o t in s u re d o r g u a ra n te e d b y F H A o r V A ...................................................................... 1 6 ,3 8 0 ,8 8 9 3 1 2 1 0 ,9 2 1 3 2 ,3 2 1 ,7 1 8 3 7 ,4 3 8 ,1 0 4 4 6 ,4 2 5 ,1 9 9 5 7 ,6 3 9 ,3 0 0

S e c u re d b y m u lt i fa m ily ( 5 o r m o r e ) p ro p e rtie s :

In s u re d b y F e d e ra l H o u s in g A d m in is tr a tio n 3 ................................................................. 5 6 2 ,5 0 1 5 8 8 ,7 6 0 8 0 3 ,8 8 0 1 2 2 5 ,7 6 9 1 2 9 3 ,1 9 1

N o t in s u re d b y F H A 3 ............................................................................................................ 2 , 6 4 7 ,8 5 7 2 ,7 1 8 ,8 2 9 3 ,1 7 9 ,9 7 0 4 ,5 5 0 ,1 1 3 5 ,6 3 6 2 2 9

S e c u re d b y o t h e r p r o p e r t ie s .............................................................................................................. 1 0 ,5 3 9 ,6 7 5 2 2 ,0 5 3 ,4 5 9 2 3 2 3 8 2 4 4 2 6 2 7 7 2 8 9 3 1 ,7 1 4 ,7 0 3 3 8 ,6 4 1 ,7 5 4

Loans to dom estic com m ercial and fo re ig n banks ........................................................................... 3,594,633 2,425,147 2,581,078 4,405,298 6,119,843 9,155,496

Loans to o ther financial in s titu tio n s ....................................................................................................... 9,441,479 14,938,963 15,794,299 16,908,213 23,407,695 30,540,982

Loans to brokers and dealers in se cu ritie s............................................................................................ 5,325,642 5,646,962 6,208,570 7,202,440 11,165,572 7,625,741

Other loans fo r purchasing or carrying s e c u ritie s ............... ............................................................. 2,476,760 3,994,818 3,517,601 3,646,064 4,467,145 4,300,946

Loans to farm ers (excludinq loans on real e s ta te )............................................................................. 7,461,413 10,323,657 11,153,583 12,506,206 14,302,106 17,150,320

Com m ercial and industrial loans (in cluding open m arket paper) ............................................... 52,984,200 108,393,788 112,214,990 118,401,203 132,497,555 158,688,202

O ther loans to in d iv id u a ls -to ta l ............................................................................................................ 34,531,746 63,355,683 66,005,700 74,796,848 87,629,904 100,382,510

P assenger a u to m o b ile in s ta lm e n t lo a n s .......................................................................................... 1 2 ,4 3 7 ,2 7 2 2 2 ,7 0 6 ,1 0 8 2 2 ,3 6 6 ,4 4 3 2 4 ,8 5 0 ,6 9 5 2 9 ,0 8 4 $ 2 4 3 3 ,4 7 7 ,1 3 2

C re d it c a rd s a n d re la te d p la n s :

R e ta il (ch a rg e a c c o u n t) c r e d it c a rd p la n s 5 ............................................................................. 2 ,6 3 9 ,4 9 7

1 ,0 8 2 ,7 9 1

3 ,8 0 7 ,9 8 7

1 ,34 3J9 90

4 ,5 2 3 ,8 8 9

1 ,4 6 3 ,8 5 7

5 ,4 4 3 ,3 4 9

1 ,7 8 0 ,1 5 3

6 ,8 7 8 ,5 9 3

C h e c k c r e d it a n d re v o lv in g c r e d it p la n s 5 ................................................................................ 2 2 6 2 ,7 0 0

ASSETS AND LIABI LITIES OF BANKS

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 109. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1963,1969-1973-CONTINUED 

(Amounts in thousands of dollars)

Asset, lia b ility , or capital acco u n t item Dec. 2 8 ,1 9 6 3 Dec. 3 1 ,1 9 6 9 1 Dec. 3 1 ,1 9 7 0 Dec. 3 1 ,1 9 7 1 Dec. 3 1 ,1 9 7 2 Dec. 3 1 ,1 9 7 3

3 ,2 0 0 ,6 1 2 6 , 2 6 9 2 2 4 7 , 3 0 6 2 9 5

M o b ile h o m e s , n o t in c lu d in g tr a v e l tr a ile r s 3 ......................................................................... 4 ,6 7 4 ,3 6 4

4 ,6 5 5 ,5 1 0

3 ,8 6 5 ,5 9 7

1 1 ,4 0 9 ,4 7 7

1 9 ,3 5 3 ,4 5 9

8,045,334

6 ,4 3 6 ,1 4 5

5 ,1 7 0 ,1 1 8

4 , 3 2 6 2 1 6

1 2 2 0 3 ,6 5 9

2 2 ,4 8 4 ,6 4 0

10,226,037

8 ,3 7 1 ,2 8 6

6 2 0 6 ,8 5 1

4 ,9 0 6 ,9 4 0

' 2 3 ,7 4 0 ,9 6 0

13,124,410

R e s id e n tia l r e p a ir a n d m o d e r n iz a tio n in s ta lm e n t lo a n s ............................................................

O th e r in s ta lm e n t lo a n s f o r p e rs o n a l e x p e n d itu r e s .......................................................................

S in g le -p a y m e n t lo a n s f o r p e rs o n a l e x p e n d itu r e s .........................................................................

A ll oth e r loans (in cluding o v e rd ra fts ).....................................................................................................

2 ,9 0 9 ,5 9 0

5 ,7 1 8 ,9 2 0

1 0 2 6 5 ,3 5 2

4,305,466

3 ,6 5 4 ,8 6 3

9 2 3 6 ,3 4 0

1 7 ,0 6 6 ,1 6 0

7,346,631

3 ,7 1 6 ,8 0 2

1 0 ,5 3 4 ,5 3 8

1 6 2 2 8 2 4 5

7,660,319

T o ta l loans and securities ............................................................................................................. 265,400,207 421,848,948 461,360,747 517,036,246 598,297,791 682,365,800

Bank premises, fu rn itu re and fix tu re s , and oth e r assets representing bank premises ..........

Real estate ow ned o the r than bank p re m is e s ......................................................................................

4 ,305,466

8 9,334

8,070,059

360,820

651,095

3,308,881

7 ,139,779

9,143,432

406,832

740,897

3,753,246

7,897,552

1 0,285,384

390,833

9 11,550

3,914,186

8,674,423

11,524,646

369,193

1,077,700

3,471,203

11,114,739

12,788,763

4 33,860

1,403,400

C ustom ers' lia b ility on acceptances o utstanding ..............................................................................

O ther a s s e ts .....................................................................................................................................................

1,591,458

1,953,732

4,356,527

14,370,749

T o ta l lia b ilitie s , reserves, and capital accounts ................................................................................................ 314,785,659 530,714,711 576,350,801 639,903,322 737,699,385 832,658,280

Business and personal d e p o s its - to ta l............................................................................................................

Individuals, partnerships, and c o rp o ra tio n s -d e m a n d .......................................................................

Individuals, partnerships, and c o rp o ra tio n s -tim e ............................................................................

S a ving s d e p o s it s ......................................................................................................................................

D e p o s its a c c u m u la te d f o r p a y m e n t o f p e r s o n a l l o a n s ...............................................................

O th e r d e p o s its o f in d iv id u a ls , p a rtn e rs h ip s , a n d c o r p o r a tio n s ................................................

C e rtifie d and o ffic e rs ' checks, letters o f c re d it, travelers' checks, e tc ..........................................

228,042,312

123,561,302

100,033,046

7 6 ,4 1 3 ,7 0 1

8 3 6 ,4 5 0

2 2 ,7 8 2 ,8 9 5

4 ,447,964

365,934,821

178,185,683

176,240,900

9 3 ,7 9 6 ,3 0 2

1 ,1 2 9 ,3 0 5

8 1 ,3 1 5 2 9 3

11,508,238

395,246,811

181,897,284

204,962,756

9 8 ,8 1 5 ,8 6 3

8 0 2 2 2 4

1 0 5 ,3 4 3 2 6 9

8,386,771

439,568,884

191,775,515

237,930,791

1 1 2 ,1 6 5 ,9 5 1

6 7 7 ,1 7 9

1 2 5 ,0 8 7 ,6 6 1

9,862,578

504,283,757

221,204,645

271,826,567

1 2 4 ,1 8 8 ,7 1 6

5 5 4 ,0 0 1

1 4 7 ,0 8 3 ,8 5 0

11,252,545

555,151,799

231,956,880

312,332,827

1 2 7 ,8 1 8 ,4 3 4

5 0 3 ,4 6 8

1 8 4 ,0 1 0 ,9 2 5

10,862,092

G overnm ent d e p o s its - to ta l...............................................................................................................................

U nited States G o v e rn m e n t-d e m a n d .......................................................................................................

U nited States G o v e rn m e n t-tim e .............................................................................................................

States and s u b d iv is io n s -d e m a n d .............................................................................................................

States and s u b d iv is io n s -tim e ....................................................................................................................

27,142,510

6,729,214

268,203

12,261,389

7,883,704

36,092,200

5,050,538

2 2 2,560

17,559,438

13,259,664

49,455,597

7,914,962

465,476

17,784,768

23,290,291

58,987,158

10,263,251

530,769

17,714,586

30,478,552

67,554,342

10,939,672

614,035

18,672,774

37,327,861

73,660,934

9,887,668

440,641

18,746,900

44 ,585,725

D om estic in te rb a n k d e p o s its - to ta l...............................................................................................................

C om m ercial banks in the U nited S ta te s -d e m a n d ..............................................................................

C om m ercial banks in the U nited S ta te s -tim e ......................................................................................

M utual savings banks in th e U nited S ta te s -d e m a n d .........................................................................

M utual savings banks in the U nited S ta te s -tim e ..............................................................................

14,268,764

13,323,080

268,710

49,252

17,428

24,858,037

23,394,428

415,216

1,017,123

31,270

28,968,652

26,290,939

1,424,049

975,413

278,251

31,906,847

28,014,732

2,441,489

1,163,740

286,886

33,677,534

28,569,727

3,548,503

1,205,688

353,616

37,444,862

29,861,879

5,783,907

1,155,682

643,394

Foreign governm ent and bank d e p o s its - to ta l...........................................................................................

Foreign governm ents, central banks, e tc .-d e m a n d ............................................................................

Foreign governm ents, central banks, e t c . - t i m e .................................................................................

Banks in fo re ig n c o u n trie s -d e m a n d .......................................................................................................

Banks in fo re ig n c o u n trie s -tim e .............................................................................................................

5,193,043

841,590

3,045,415

1,177,311

128,727

10,104,607

940,239

6,378,964

2,475,098

3 1 0,306

8,842,795

919,683

4,627,306

3,000,626

295,180

8,721,173

803,364

5,053,554

2,681,096

183,159

11,391,934

908,731

6,517,493

3,637,309

328,401

15,361,830

1,355,645

8,506,931

5,279,635

219,619

T o ta l d e p o s its ...........................................................................................................................................

D e m a n d ................................................................................................................................................

T im e ......................................................................................................................................................

274.646.6296

1 6 2 ^ 5 2 ,1 4 4

1 1 1 ,6 9 4 ,4 8 5

436,989,665

2 4 0 ,1 3 0 ,7 8 5

1 9 6 ,8 5 8 ,8 8 0

482,513,855

2 4 7 ,1 7 0 ,4 4 6

2 3 5 ,3 4 3 ,4 0 9

539,184,062

2 6 2 2 7 8 ,8 6 2

2 7 6 2 0 5 2 0 0

616,907,567

2 9 6 ,3 9 1 ,0 9 1

3 2 0 ,5 1 6 ,4 7 6

681,619,425

3 0 9 ,1 0 6 ,3 8 1

3 7 2 ,5 1 3 ,0 4 4

200 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
M iscellaneous lia b ilit ie s - t o t a l........................................................................................................................ 11,821,823 47,966,725

14,684,700

3,367,342

601,562

3 ,387,309

25,925,812

44,968,169

16,609,041

2,572,528

668,545

3,848 ,6 6 6

2 1,269,389

47,367,281

24,179,742

1,463,429

668,331

4,039,643

17,016,136

61,509,222

33,731,069

3,919,796

1,160,675

3,570,900

19,126,782

85,386,177

50,480,996

7,179,644

771,519

4,486,309

22,467,709

O ther lia b ilitie s fo r bo rrow e d m o n e y .................................................................................................... 3,576,530

Acceptances o u ts ta n d in g ...........................................................................................................................

O ther lia b ilitie s ...............................................................................................................................................

1,620,293

6,625,000

T o ta l lia b ilit ie s ........................................................................................................................................ 286,468,452 484,956,390 527,482,024 586,551,343 678,416,789 767,005,602

M in o rity interest in consolidated subsidiaries .......................................................................................... 3,295 3,219 3,551 5,594 5,47?

Reserves on loans and s e c u ritie s -to ta l......................................................................................................... 2,994,811 6,178,797 6,299,150 6,443,382 6,909,306 7,808,584

Reserves fo r bad de bt losses on loans ................................................................................................. 2,994,811 5,885,873 5,998,689 6,151,274 6,623,801 7,526,744

O ther reserves on loans3 ............................................................................................................................. 108,824 115,601 113,427 112,167 107,994

Reserves on securities3 ................................................................................................................................ 1 8 4 J 0 0 184,860 178^681 173,338 173^846

C apital a c c o u n ts -to ta l ..................................................................................................................................... 28,317,507 39,576,229 42,566,408 46,905,046 52,367,696 57,838,621

Capital notes and d e b e n tu re s ................................................................................................................... 130,014 1,998,316 2,091,879 2,956,180 4,092,820 4,117,351

E q u ity c a p ita l- to ta l..................................................................................................................................... 37,577,913 40,474,529 43 948 866 48,274,876 53 721 270

P re fe rre d s t o c k ....................................................................................................................................... 3 7 ,8 3 9 1 0 3 ,4 1 6 1 0 7 ,3 0 4 ' 9 1 £ 3 0 ' 6 8 £ 2 4 ' 6 5 ,6 5 0

C o m m o n s t o c k ........................................................................................................................................ 7 ,2 8 2 ,9 8 0 1 0 ,5 2 9 ,3 2 2 1 1 ,1 3 7 ,8 2 4 1 1 ,8 1 1 ,1 2 9 1 2 ,8 5 3 ,6 5 3 1 3 ,8 4 6 ,0 7 1

S u rp lu s ....................................................................................................................................................... 1 5 ,1 5 8 2 8 2 1 7 ,4 6 0 ,8 3 2 1 8 ,0 7 2 ,5 9 0 1 9 ,8 9 5 ,8 1 6 2 1 ,5 2 8 ,4 2 2 2 3 ,5 9 3 ,3 1 1

U n d iv id e d p r o f i t s ..................................................................................................................................... 5 ,1 1 3 ,4 0 3 8 ,4 2 6 ,7 8 7 1 0 ,1 4 5 ,8 4 8 1 1 ,1 3 5 ,0 6 8 1 3 ,0 1 2 2 3 2 1 5 ,3 6 1 ,8 5 7

R ese rve fo r c o n tin g e n c ie s a n d o th e r c a p ita l r e s e rv e s ................................................................ 5 9 4 J 9 8 9 1 ,0 5 7 ,5 5 6 1 ,0 1 0 £ 6 3 1 ,0 1 4 £ 2 3 8 1 1 ,6 4 5 8 5 4 ,3 8 1

PE R C EN TAG ES

Of to ta l assets:

Cash and balances w ith oth e r b a n k s .............................................................................................................. 16.0% 16.8% 16.1% 15.4% 15.2% 14.1%

U.S. Treasury securities and securities o f other U.S. G overnm ent agencies and c o rp o ra tio n s .. 21.1 11.8 12.4 12.5 11.6 9.9

Other s e c u ritie s .................................................................................................................................................... 9.9 11.8 13.2 14.0 13.3 12.7

Loans (in cluding Federal funds sold and securities purchased under

agreements to re s e ll)............................................................................................................................. 50.5 55.9 54.5 54.4 56.2 59.3

O ther assets........................................................................................................................................................... 2.5 3.7 3.8 3.8 3.7 4.0

T o ta l capital a c c o u n ts ........................................................................................................................................ 9.0 7.5 7.4 7.3 7.1 7.0

Of to ta l assets other th a n cash and U.S. Treasury securities:

T otal capital a c c o u n ts ....................................................................................................................................... 14.1 10.2 10.0 9.8 9.4 8.8

N um ber o f b a n k s ....................................................................................................................................................... 13,291 13,473 13,511 13,612 13,733 13,976

1 For description o f changes in 1969 in the R eport o f C o n d itio n , see pp. 187-188 and notes to tables.

2 Assets include "O th e r loans and discounts” at gross (before deduction of valuation reserves) value, as reported in 1 9 6 9 -1 9 7 3 .

3 N o t available p rio r to figure show n, see note 1.

4 P rior to December 31, 1966, "F e d e ra l funds sold (lo a n e d )" n ot reported separately; m ost were included w ith loans to banks; since 1967, includes securities purchased under agreements to resell, w hich previously were 

reported w ith "L o a n s to dom estic com m ercial and fo reign banks" and "O th e r loans fo r purchasing or carrying securities."

5 Before 1967, loans extended under cre d it cards and related plans were distributed among other instalm ent loan items,

in c lu d e s postal savings deposits, $ 1 7 ,428 thousand.

7 P rior to December 31, 1966, Federal funds purchased were included in "O th e r liabilities fo r borrowed m o n e y"; since 1967, includes securities sold under agreements to repurchase w hich previously were reported w ith 

"O th e r lia b ilitie s fo r borrow ed m o n e y ."

ASSETS AND LIABILITIES OF BANKS 201

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 110. ASSETS AND LIABILITIES OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1963, 1969-1973 

(Amounts in thousands of dollars)

Asset, lia b ility , or surplus account item Dec. 2 8 ,1 9 6 3 Dec. 3 1 ,1 9 6 9 Dec. 3 1 ,1 9 7 0 Dec. 3 1 ,1 9 7 1 Dec. 3 1 ,1 9 7 2 Dec. 3 1 ,1 9 7 3

T o ta l a sse ts.................................................................................................................................................................... 43 ,2 3 7 ,7 2 3 1 64 ,8 3 7 ,8 9 2 1 68,739,524 77,891,927 87,650,051 93,012,515

Cash balance* W!**1 hankc anrl r.nllentinn item s— to ta l .........................................................................

C urrency and co in ...........................................................................................................................................

Demand balances w ith banks in the U nited S ta te s ...........................................................................

Other balances w ith banks in the U nited S ta te s ................................................................................

Cash item s in process of c o lle c tio n ..........................................................................................................

721,513

104,083

441,946

141,043

34,441

780,079

179,378

499,506

42,964

58,231

1,115,656

1 /3 ,b 4 b 

538,858 

316,584 

86,568

1,273,735

ia D ,b /s

551,149

445,384

81,523

1,520,399

215,345

568,211

627,530

109,313

1,847,776

non n n r

711,172

817,495

92,204

S e c u ritie s -to ta l .................................................................................................................................................. 9,364,593 1 1 ,926,8251 13,550,8 4 9 1 18,491,379 22,636,737 21,871,412

U nited States G overnm ent and agency s e c u r itie s - to ta l................................................................. 5,036,443 3,608,068 3,860,276 5 ,1 56,3215 

8 6 7 ,9 9 2

1 ,8 2 3 ,9 9 7

8 3 2 ,8 5 9

1 ,6 3 1 ,4 7 3

373,810

9,293,507

1,194,941

6,3 8 6,003s 

9 6 8 ,1 5 7

1 ,9 1 5 ,0 1 4

1 ,0 9 5 ,1 1 6

2 , 4 0 7 ,7 1 6

5,971,200

8 3 1 ,7 1 9

1 ,5 1 3 ,4 7 6

7 8 9 ,9 3 6

2 ,8 3 6 ,0 6 9

State, c o u n ty , and m unicipal o b lig a tio n s .............................................................................................

Corporate bonds ...........................................................................................................................................

Other bonds, notes, and d e b e n tu re s .......................................................................................................

410,862 

J 3,003,7733

190,949 

J 6,273,9693

192,606 

} 7 ,4 1 3 ,7423

857,353

11,086,004

1,370,862

907,013

10,026,920

1,713,867

Corporate s t o c k - t o t a l ................................................................................................................................

B a n k ............................................................................................................................................................

913,515 1,853,839

2 5 1 ,9 0 3

1 ,6 0 1 ,9 3 6

2,084,225

2 5 1 ,3 2 1

1 ,83 2J3 04

2,472,800

2 8 8 ,3 7 3

2 , 1 8 4 ,4 2 7

2,936,515

3 2 9 ,4 2 6

3,252,412

3 6 4 ,0 6 6

O t h e r .......................................................................................................................................................... 2 ,6 0 7 ,0 8 9 2 ,8 8 8 ,3 4 6

Federal funds sold and securities purchased under agreements to resell4 ........................................ 493,536

56,066,722

54,222,077

7 3 6 ,3 8 6

4 1 ,6 5 6

1 3 ,5 3 2 ,3 4 4

1 0 ,9 2 3 ,5 1 7

1 3 ,0 3 1 2 2 9

1 ,3 9 6 ,7 9 1

7 ,1 3 6 ,5 8 6

7 ,4 2 3 ,5 6 8

49,628

36,492

5,951

3,485

1,110

463,001

1,260,144

24,834

596,255

60,950,481

59,094,330

1 ,0 0 2 ,7 1 2

5 1 ,4 5 9

1 3 ,3 8 8 ,4 3 3

1 1 ,4 1 3 ,7 6 9

1 4 ,8 0 4 ,5 6 8

1 ,3 9 9 ,7 9 4

8 ,2 6 5 ,9 2 6

8 ,7 6 7 ,6 6 9

29,751

29,927

28,922

3,446

1,305

252,438

1,451,401

58,961

1,252,753

65,870,714

63,946,513

1 ,0 9 0 ,2 6 2

O ther lo a n s -to ta l ................................................................................................................................................

Real estate lo a n s - to ta l................................................................................................................................

C o n s tru c tio n lo a n s 2 ..............................................................................................................................

32,518,3 551 

31,892,036

50,949,4 9 6 1

49,329,087

52,753,8 0 8 1

50,695,693

S e c u re d b y f a r m la n d ..............................................................................................................................

S e c u re d b y re s id e n tia l p ro p e rtie s :

S e c u re d b y 1 - to 4 - f a m i l y re s id e n tia l p r o p e rtie s :

In s u re d b y F e d e ra l H o u s in g A d m in is t r a t io n ....................................................................

G u a ra n te e d b y V e te ra ns A d m in is tr a tio n ...........................................................................

N o t in s u re d o r g u a ra n te e d b y F H A o r V A ......................................................................

S e c u re d b y m u lt if a m ily (5 o r m o r e ) r e s id e n tia l p ro p e rtie s : 6

In s u re d b y F e d e ra l H o u s in g A d m in is t r a t io n ....................................................................

4 6 ,8 4 8 5

9 , 9 6 9 ,5 JO6

9 ,5 0 0 ,6 7 3 6 

9 ,3 8 6 ,6 6 3 6

1 0 6 ,9 4 3 *

1 4 ,7 4 2 ,5 7 7 6 

1 1 ,0 3 0 ,4 5 6 6 

1 7 ,1 9 3 ,3 0 9 6

/ 1 2 ,7 2 3 s

1 3 ,5 6 3 ,0 6 9

1 0 ,8 8 4 ,7 1 8

1 2 ,0 8 9 2 8 8

1 ,3 5 8 ,5 9 0

6 ,0 1 5 ,2 9 1

6 ,6 7 2 ,0 1 4

280,9 994 

53,867 

16,342 

1,838 

1,068 

586,589 

1,081,513 

35,899

5 1 ,1 6 0

1 2 ,8 2 8 ,7 7 5

1 1 ,7 2 8 2 4 9

1 7 ,0 8 7 ,5 3 3

1 ,5 2 3 ,7 5 1

N o t in s u re d b y F H A ...............................................................................................................

S e c u re d b y o t h e r p r o p e rtie s .......................................................................................................

Loans to dom estic com m ercial and foreign banks ...........................................................................

Loans to oth e r financial in s titu tio n s .......................................................................................................

Loans to brokers and dealers in se cu ritie s.............................................................................................

Other loans fo r purchasing or carrying securities ..............................................................................

Loans to farm ers (excluding loans on real e s ta te )........ .................................................................

Com m ercial and industrial lo a n s...............................................................................................................

Loans to individuals fo r personal e x p e n d itu re s ...................................................................................

A ll other loans (in cluding overdrafts) ....................................................................................................

' 2 ,9 8 8 ,3 4 2

15,6174 

7,016 

24,278 

11,579 

2,499 

160,682 

388,211 

16,437

’ 6 2 5 5 ,8 0 2

31 9 ,2794 

25,111 

30,710 

7,433 

1,201 

206,348 

987,198 

43,129

9 ,4 1 6 ,8 8 7

1 0 2 1 9 ,8 9 6

13,679

29,473

4,441

2,221

1,323

173,322

1,665,365

34,377

202 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T o ta l loans and s e c u ritie s ...................................................................................................... 4 1 ,8 8 2 ,9 4 8 1 6 2 ,8 7 6 ,3 2 1 1 66 ,3 0 4 ,6 5 7 1 75,051,637 84,183,473 88,994,879

Bank premises, fu rn itu re and fix tu re s , and o th e r assets representing bank premises . . .

Real estate ow ned o th e r than bank prem ises...............................................................................

Investm ents in subsidiaries n o t consolidated2 . . . .....................................................................

290,072

22,825

4 97,059

4 7,607

5 28,680

62,805

590,326

90,987

41,518

843,724

661,118

147,340

59,309

1,078,412

760,289

180,671

64,883

1,164,017O ther assets................................................................................................................................................. 

T o ta l lia b ilitie s and surplus accounts ................................................................................................................ 43,2 37,723 64,837,892 68,739,524 77,891,927 87,650,051 93,012,128

D e p o s its -to ta l ....................................................................................................................................................

Savings d e p o s its ............................................................................................................................................

Deposits accum ulated fo r pa ym en t o f personal lo a n s .....................................................................

Fixed m a tu rity and o th e r tim e d e p o s its ...............................................................................................

38,657,119

38,324,849

631

5 8,867,848

57,729,948

1,096

602,968

5 8 ,3 3 4 ,0 1 2

5 3 3 ,8 3 6

62,683,783

57,989,110

64

4 ,100 ,9 9 4

6 2 ,0 9 0 ,1 6 8

5 9 3 ,6 1 5

71,500,831

57,644,100

80

13,173,871

7 0 ,8 1 8 ,0 5 1

6 8 2 ,7 8 0

80,571,993

60,573,427

25

19,207,929

7 9 ,7 8 1 ,3 8 1

7 9 0 ,6 1 2

84,890,128

57,591,849

476

26,416,246

8 4 ,0 0 8 ,5 7 1

8 8 1 ,5 5 7

S a vin g s a n d tim e d e p o s i t s - t o t a l......................................................................................................

D e m a n d d e p o s it s - t o t a l........................................................................................................................

3 8 ,3 6 0 ,3 1 2

2 9 6 ,8 0 7

M iscellaneous lia b ilit ie s - t o t a l........................................................................................................................

S ecurities sold under agreements to re p u rc h a s e ...............................................................................

790,247 1,068,152 1,000,127 975,9 9 6 1 1,114,469

22/757 

98,980 

992,732

1,609,538

26,089

445,901

1,137,548

O ther b o rro w in g s ..........................................................................................................................................

O ther lia b ilitie s ............................................................................................................................................

37,647

752,600

3 81,690

686,462

252,171

7 47,956

100,045

875,951

T o ta l lia b ilitie s ........................................................................................................................... 39,447,366 59,936,000 63,683,910 72,476,827 81,686,462 86,499,666

M in o rity interest in consolidated subsidiaries2 .......................................................................................... 1 0 0

S urplus a c c o u n ts - to ta l.....................................................................................................................................

C apital notes and d e b e n tu re s ...................................................................................................................

O ther surplus a c c o u n ts ................................................................................................................................

3,790,357

3 ,7 8 9 ,8 2 4 1

4,90 1,892

4,617

4 ,8 9 7 ,2 7 5 1

5,05 5,614

6,068

5 ,0 4 9 ,5 4 6 1

5,415,099

10,456

5,404,643

5,963,589

59,372

5,904,217

6,512,849

114,953

6,397,896

P E R C E N TA G E S

O f to ta l assets:1

Cash and balances w ith o th e r b a n k s ..............................................................................................................

U.S. G overnm ent and agency s e c u ritie s ......................................................................................................

O ther s e c u ritie s ....................................................................................................................................................

Loans (in clu din g Federal fu n d s sold and securities purchased

under agreements to re s e ll)................................................................................................................

O ther a ssets...........................................................................................................................................................

T o ta l surplus accounts .....................................................................................................................................

1.7%

11.6

10.0

75.2

1.5

8.8

1.2%

5.6 

12.8

78.6

1.8

7.6

1.6%

5.6

14.1

76.8

1.9

7.4

1.7%

6.6

17.1

72.6

2.0

7.0

1.7%

7.3

18.5

70.2

2.2

6.8

2.0%

6.4

17.1

72.2 

2.3 

7.0

O f to ta l assets o th e r th a n cash and U.S. G overnm ent and agency securities:

T o ta l surplus accounts ..................................................................................................................................... 10.1 8.1 7.9 7.6 7.5 7.6

N um ber o f banks ...................................................................................................................................................... 330 331 329 327 326 322

1 Figures on loans, and on securities in 1 9 6 9 -1 9 7 0 , have been revised to a gross basis to provide com p a ra b ility w ith data fo r 1 9 7 1 -1 9 7 3 . See page 188 fo r in fo rm a tio n on changes in reports in 1971.

2 N o t reported separately p rio r to 1971.

3 C orporate bonds included w ith o th e r bonds, notes, and debentures p rio r to 1971.

4 Federal fun d s sold included w ith loans to banks p rio r to 1971.

5 Farmers Hom e A d m in is tra tio n insured notes, previously reported as loans secured by farm land, included in U.S. G overnm ent and agency securities in 1 9 7 1 -1 9 7 3 .

6 P rior to 1970, real estate loans secured by m u ltifa m ily residential properties were com bined w ith those secured by 1 - to 4 - fa m ily residential properties.

ASSETS AND LIABILITIES OF BANKS 203

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Tabie 111. PERCENTAGES OF ASSETS AND LiABiLiTiES OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1973 IN 

THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1973 

BANKS GROUPED BY AMOUNT OF DEPOSITS

Asset, lia b ility , or capital account item

A ll

banks

Banks w ith deposits o f -

Less 

than 

$1 m illio n

$1 m illio n 

to

$2 m illio n

$2 m illion 

to

$5 m illio n

$5 m illio n 

to

$10 m illio n

$10 m illio n 

to

$25 m illio n

$25 m illio n 

to

$50 m illio n

$50 m illio n 

to

$100 m illio n

$100 m illio n 

to

$500 m illio n

$500 m illio n 

to

$1 b illio n

$1 b illio n 

or 

more

T o ta l 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 fro m banks ......................................................... 14.1 16.4 13.1 11.2 10.5 10.4 10.7 11.3 13.3 13.6 16.9

U.S. Treasury and agency securities1 ...................................... 10.0 32.7 28.7 25.7 21.0 17.0 14.1 12.6 10.6 8.4 5.9

O bligations o t States and p o litica l s u b d iv is io n s .................. 1 f.u z .u j . i b.d 10.3 13.5 14.4 i4.S 12.3 11.5 8.3

O ther s e c u ritie s ............................................................................. .7 .6 .8 .8 .6 .8 .8 1.0 .8 .7 .5

Federal funds sold (loaned)2 .................................................... 4.1 12.1 11.8 8.5 6.7 5.3 4.0 4.1 4.4 5.0 3.2

O ther loans and d is c o u n ts -to ta l............................................. 55.2 35.3 41.1 45.6 48.2 50.6 53.1 53.4 54.3 56.0 58.0

Real estate lo a n s -to ta l ....................................................... 14.3 5.0 9.1 12.3 14.9 17.2 18.2 18.6 17.1 15.5 10.6

Loans to banks and other financial in s titu tio n s .......... 4.8 .2 .4 .4 .3 .4 .6 .9 1.9 3.9 9.2

Loans to purchase or carry s e c u ritie s .............................. 1.4 .1 .1 .2 .2 .3 .3 .4 1.1 .9 2.5

Loans to farm ers (excluding loans on real e s ta te ). . . . 2.1 15.8 14.1 13.9 10.6 6.5 3.2 1.4 1.0 .8 .7

C om m ercial and industrial lo a n s........................................ 19.1 2.9 5.3 6.4 7.9 10.1 12.8 14.8 16.7 20.0 25.0

Instalm ent loans fo r personal expenditures.................... 9.2 8.6 8.9 9.2 10.5 12.1 13.8 12.8 12.0 9.5 5.7

Single-paym ent loans fo r personal e x p e n d itu re s .......... 2.9 1.8 2.7 2.8 3.2 3.4 3.6 3.7 3.3 3.6 2.0

A ll o ther loans (in cluding o v e rd ra fts ).............................. 1.5 .9 .5 .5 .5 .6 .6 .7 1.1 1.7 2.3

O ther assets..................................................................................... 3.9 .9 1.5 1.7 2.0 2.3 2.9 3.0 3.4 4.0 5.1

T o ta l lia b ilitie s, reserves, and capital accounts ......................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

D e p o s its -to ta l................................................................................ 81.9 85.1 87.3 89.0 89.3 89.2 88.2 87.4 84.8 81.6 76.1

D e m a n d ............................................................................. 3 7 .2 6 2 .6 5 0 .5 4 1 .0 3 8 .2 3 6 .5 3 5 .7 3 5 .5 3 7 .2 3 8 .4 3 7 .4

T im e ..................................................................................... 4 4 .8 2 2 .5 3 6 .8 4 8 .0 5 1 .1 5 2 .7 5 2 .5 5 1 .9 4 7 .6 4 3 .2 3 8 .7

Individuals, partnerships, and corp o ra tio n s-d e m a n d . 28.0 55.8 44.9 35.3 32.4 30.8 30.1 29.3 28.9 29.2 25.5

Individuals, partnerships, and c o rp o ra tio n s -tim e . . . . 37.6 19.5 33.0 43.6 46.5 47.6 46.6 44.6 40.2 35.8 30.8

U.S. G o v e rn m e n t................................................................... 1.2 .5 .5 .6 .9 1.1 1.1 .7 1.0 1.7 1.5

States and su b divisions......................................................... 7.6 8.6 8.3 8.5 8.5 8.6 8.8 10.1 9.7 9.2 5.3

Domestic in te rb a n k ............................................................... 4.9 .4 .2 .3 .2 .3 .6 1.6 3.8 4.5 8.6

Foreign governm ent and b a n k ........................................... 1.2 .0 .0 (5) (5) (5) (5) (5) .1 .1

1.0

2.7

Other d e p o s its ........................................................................ 1.3 .3 .5 .7 .8 .9 1.0 1.1 1.1 1.7

Federal funds purchased (borrow ed)3 ................................... 6.1 .0 .1 .1 .2 .4 .8 1.7 4.2 6.7 10.6

O ther lia b ilitie s fo r borrow ed m o n e y ...................................... .9 .1 (5) .1 .1 .1 .1 .2 .4 .7 1.6

O ther lia b ilitie s4............................................................................. 3.2 .8 1.0 1.3 1.6 2.1 2.7 2.8 2.7 3.1 4.1

Reserves on loans and securities................................................ .9 .2 .4 .5 .6 .7 .8 .8 .8 .9 1.1

Capital notes and d e b e n tu re s .................................................. .5 (5) (5) .1 .1 .2 .3 .4 .5 .7 .6

O ther capital a cc o u n ts ................................................................. 6.4 13.8 11.1 8.9 7.9 7.3 7.0 6.8 6.4 6.4 5.9

N um ber o f banks ........................................................................ 13,644 35 326 2,242 3,205 4,418 1,804 848 594 94 78

1 Securities held in trading accounts are included in "O th e r assets."

in c lu d e s securities purchased under agreements to resell,

in c lu d e s securities sold under agreements to repurchase,

in c lu d e s m in o rity interest in consolidated subsidiaries.

5 Less than 0.05 percent.

Note: F o r income and expense data by size o f bank, see tables 117 and 118. Assets and liabilities (in $000) o f all com m ercial banks by size o f bank are contained in A ssets a n d L ia b ilitie s - C o m m e rc ia l a n d M u tu a l Savings

B a nks (w ith 1973 re port o f incom e), December 3 1 ,1 9 7 3 .

204 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 112. PERCENTAGES OF ASSETS AND LIABILITIES OF INSURED MUTUAL SAVINGS BANKS OPERATING THROUGHOUT 1973 IN 

THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1973 

BANKS GROUPED BY AMOUNT OF DEPOSITS

Assets, liab ilitie s, o r surplus account item A ll

banks1

Banks w ith deposits of

$5 m illion 

to

$10 m illion

$10 m illio n 

to

$25 m illio n

$25 m illio n 

to

$50 m illio n

$50 m illio n 

to

$100 m illio n

$100 m illio n 

to

$500 m illio n

$500 m illio n 

to

$1 b illio n

$1 b illio n 

or 

more

T otal assets...................................................................................................... 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Cash and due fro m banks ................................................................... 2.0 5.7 2.8 1.7 1.7 1.8 2.2 2.0

U nited States Governm ent and agency se cu ritie s......................... 6.4 9.8 7.2 6.0 7.8 7.8 6.2 5.5

Corporate b o n d s ..................................................................................... 10.8 8.0 8.5 6.9 8.4 9.0 10.1 12.9

State, co u n ty and m unicipal o b lig a tio n s ........................................ 1.0 .7 .7 .7 .6 .7 .9 1.3

O ther s e c u ritie s ....................................................................................... 5.3 7.9 5.7 6.4 5.2 5.8 5.2 5.0

Federal funds sold and securities purchased under

agreements to resell........................................................................... 1.3 3.3 2.3 1.5 2.3 1.4 1.2 1.2

O ther loans and d is c o u n ts ................................................................... 70.8 63.0 70.9 75.0 72.2 71.2 71.7 69.6

Real estate lo a n s - to ta l........................................................................ 68.8 58.3 66.7 70.3 69.1 68.7 69.5 68.2

C o n s tru c tio n lo a n s ........................................................................... 1.2 1.5 1 .6 1.1 1.2 1.5 1.8 .6

S e c u re d b y f a r m la n d ...................................................................... .1 .3 .6 .3 .2 (2) .1 (2)

S e c u re d b y re s id e n tia l p ro p e rtie s :

In s u re d b y F H A ........................................................................ 15.4 5 .0 3 .0 6 .2 8 .3 13 .2 1 5 .6 1 8 .4

G u a ra n te e d b y V A ................................................................... 1 2 .6 2 .3 4 .5 5 .9 7 .5 11.1 1 1 .8 1 5 .3

N o t in s u re d o r g u a ra n te e d b y F H A o r V A ...................... 2 8 .5 4 1 .7 4 8 .7 4 9 .2 4 5 .0 3 5 .1 2 9 .8 1 9 .8

S e c u re d b y o th e r p r o p e r tie s ......................................................... 11 .0 7.4 8 .2 7 .5 6 .9 7 .8 1 0 .5 1 4 .0

Comm ercial and industrial loans.................................................. .2 1.1 .2 .3 .3 .1 .3 .1

Loans to individuals fo r personal e xp enditures....................... 1.8 3.6 3.6 4.2 2.7 2.3 1.7 1.2

A ll other loans including o v e rd ra fts ........................................... .1 .1 .4 .2 .1 .1 .1 (2)

O ther assets.............................................................................................. 2.3 1.5 1.9 1.8 2.0 2.3 2.5 2.4

T otal lia b ilitie s and surplus a cco u n ts....................................................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

D e p o s its -to ta l.......................................................................................... 91.3 90.8 91.2 91.1 91.0 91.5 90.9 91.4

Savings d e p o s its ................................................................................ 61.9 62.7 65.2 66.3 65.2 63.9 62.7 59.4

Deposits accum ulated fo r paym ent o f personal loans (2) (2) (2) (2) (2) (2) (2) (2)

Fixed m a tu rity and other tim e d e p o s its ................................... 28.4 27.4 25.3 24.0 24.8 26.4 27.4 31.1

Demand d e p o s its ............................................................................. .9 .6 .7 .8 .9 1.2 .9 .9

Miscellaneous lia b ilitie s ...................................................................... 1.7 1.1 1.0 1.3 1.5 1.3 1.9 2.0

Surplus a c c o u n ts ..................................................................................... 7.0 8.2 7.8 7.7 7.6 7.2 7.1 6.7

Capital notes and d e b e n tu re s ....................................................... .1 .4 .6 .2 .2 .2 .2 (2)

O ther surplus a cco u n ts................................................................... 6.9 7.8 7.2 7.4 7.4 7.0 7.0 6.6

N um ber of banks .......................................................................................... 322 12 26 73 58 101 31 21

1 D ollar am ounts o f assets and lia b ilitie s o f all m utual savings banks are shown in A ssets a n d L ia b ilitie s —C o m m e rc ia l a n d M u tu a l S avings B a nks (w ith 1973 re port of incom e), December 3 1 ,1 9 7 3 . 

2 Zero or less than 0.05 percent.

ASSETS AND LIABILITIES OF BANKS 205

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 113. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS)

DECEMBER 31, 1973

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS

R atios 

(In percent)

N um ber o f banks w ith deposits o f -

banks Less 

than 

$1 m illio n

$1 m illio n 

to

$2 m illio n

$2 m illio n 

to

$5 m illio n

$5 m illio n 

to

$10 m illio n

$10 m illio n 

to

$25 m illio n

$25 m illio n 

to

$50 m illio n

$50 m illio n 

to

$100 m illio n

$100 m illio n 

to

$500 m illio n

$500 m illio n 

to

$1 b illio n

$1 b illio n 

or

m ore

R atios o f ob lig a tio n s o f States and subdivisions to 

to ta l assets o f -

Z e r o ................................................................................................ 1,087 60 203 453 239 115 13 4 0 0 0

M ore than 0.0 b u t less than 1.0 ........................................... 470 6 59 243 78 60 14 8 2 0 0

1.0 to 2 . 4 9 ................................................................................... 558 3 49 260 136 70 25 8 7 0 0

2.5 to 4 . 9 9 .................................................................................... 966 3 40 348 288 191 46 20 21 4 5

5.0 to 7 . 4 9 .................................................................................... 1,259 2 17 299 370 336 118 39 50 12 16

7.5 to 9 . 9 9 .................................................................................... 1,738 0 11 241 454 596 211 97 78 21 29

10.0 to 1 2 .4 9 ............................................................................... 1,942 2 6 218 490 658 294 122 117 23 12

12.5 to 1 4 .9 9 ............................................................................... 1,853 0 10 120 404 705 311 166 113 15 9

15.0 to 1 7 .4 9 ............................................................................... 1,496 2 7 87 300 599 250 149 87 10 5

17.5 to 1 9 .9 9 ............................................................................... 1,049 0 1 43 206 430 206 103 58 1 1

20.0 to 24.99 ............................................................................... 1,084 0 2 51 184 458 235 100 48 5 1

25.0 or m ore ............................................................................... 474 0 4 30 98 206 84 35 14 3 0

Ratios o f U.S. Treasury securities to to ta l assets o f -

L e s s th a n 5 ................................................................................. 2,877 23 54 330 565 914 435 252 207 42 55

5 to 9.99 ...................................................................................... 4,319 16 77 477 851 1,456 739 371 275 36 21

10 to 14.99 ................................................................................. 2,965 11 75 492 702 1,039 387 159 86 12 2

15 to 19.99 ................................................................................. 1,681 6 66 389 513 497 147 45 16 2 0

20 to 24.99 ................................................................................. 911 4 47 247 273 269 54 13 3 1 0

25 to 29.99 ................................................................................. 503 4 27 167 151 118 25 7 3 1 0

30 to 34.99 ................................................................................. 317 4 18 116 96 73 8 2 0 0 0

35 to 39.99 ................................................................................. 171 3 13 71 49 23 8 1 3 0 0

40 to 44.99 ................................................................................. 97 1 10 43 24 16 1 1 1 0 0

45 to 49.99 ................................................................................. 49 2 7 17 13 7 2 0 1 0 0

50 to m o r e .................................................................................... 86 4 15 44 10 12 1 0 0 0 0

206 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Ratios o f loans to to ta l assets o f -

Less than 2 0 ................................................................................. 80 6 12 30

20 to 2 4 .9 9 .................................................................................... 93 3 7 34

25 to 2 9 .9 9 .................................................................................... 182 4 11 51

30 to 3 4 .9 9 .................................................................................... 361 3 27 95

35 to 3 9 .9 9 .................................................................................... 625 5 29 138

40 to 4 4 .9 9 .................................................................................... 1,026 2 17 228

45 to 4 9 .9 9 .................................................................................... 1,537 8 44 244

50 to 5 4 .9 9 .................................................................................... 2,100 5 37 359

55 to 5 9 .9 9 .................................................................................... 2,572 6 50 343

60 to 6 4 .9 9 .................................................................................... 2,463 7 64 347

65 to 6 9 .9 9 .................................................................................... 1,728 9 49 224

70 to 7 4 .9 9 .................................................................................... 831 9 31 187

75 or m o r e .................................................................................... 378 11 31 113

Ratios o f cash and due fro m banks to to ta l assets o f -

Less than 5 .................................................................................... 736 7 18 162

5.0 to 7 . 4 9 .................................................................................... 2,777 7 51 518

7.5 to 9 . 9 9 .................................................................................... 3,648 6 85 572

10.0 to 1 2 .4 9 ............................................................................... 2,793 13 79 413

12.5 to 1 4 .9 9 ............................................................................... 1,695 7 51 270

15.0 to 1 7 .4 9 .............................................................................. 964 9 36 152

17.5 to 1 9 .9 9 .............................................................................. 564 6 29 96

20.0 to 24.99 ............................................................................... 495 15 33 114

25.0 to 29.99 ............................................................................... 168 1 12 49

30.0 or m o re ................................................................................. 136 7 15 47

R atios o f to ta l dem and deposits to to ta l deposits o f -

Less than 2 5 ................................................................................. 641 2 8 78

25 to 2 9 .9 9 .................................................................................... 1,233 1 9 154

30 to 3 4 .9 9 .................................................................................... 1,967 4 28 271

35 to 3 9 .9 9 .................................................................................... 2,418 3 36 363

40 to 4 4 .9 9 .................................................................................... 2,337 6 47 396

45 to 4 9 .9 9 .................................................................................... 1,921 9 57 311

50 to 5 4 .9 9 .................................................................................... 1,356 8 46 277

55 to 5 9 .9 9 .................................................................................... 859 10 39 186

60 to 6 4 .9 9 .................................................................................... 471 1 31 110

65 to 6 9 .9 9 .................................................................................... 278 5 17 75

70 to 7 9 .9 9 .................................................................................... 238 8 23 76

80 to 8 9 .9 9 .................................................................................... 87 6 17 30

90 o r m o r e .................................................................................... 170 15 51 66

16 11 3 1 1 0 0

23 20 4 1 1 0 0

60 41 11 2 2 0 0

107 93 24 9 3 0 0

187 191 45 22 7 1 0

307 308 97 44 23 0 0

349 561 199 80 47 3 2

458 699 320 124 82 10 6

532 859 385 209 147 20 21

502 782 344 184 165 35 33

386 549 261 124 91 23 12

218 226 93 39 23 1 4

102 84 21 12 3 1 0

201 210 76 44 17 1 0

736 935 320 149 54 6 1

869 1,278 507 191 124 10 6

591 918 426 191 132 24 6

345 516 232 124 105 21 24

202 264 125 79 67 15 15

133 131 64 33 48 9 15

108 110 39 29 33 7 7

37 41 11 7 6 1 3

25 21 7 4 9 0 1

145 246 95 42 24 1 0

283 452 183 98 48 4 1

456 693 295 132 76 8 4

559 838 335 164 100 12 8

572 723 318 150 102 11 12

464 572 262 118 91 21 16

309 398 162 59 72 11 14

188 245 85 46 38 15 7

91 134 39 23 21 8 13

73 62 19 9 13 3 2

65 43 10 7 5 0 1

14 13 3 1 3 0 0

28 5 1 2 2 0 0

ASSETS AND LIABI LITIES OF BANKS 207

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 113. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1 9 7 3 -C O N T IN U E D

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS

N um ber o f banks w ith deposits o f -

Ratios 

(In percent) banks Less 

than 

$1 m illio n

$1 m illio n 

to

$2 m illio n

$2 m illio n 

to

$5 m illio n

i i 

$5 m illio n 

to

$10 m illio n

i

$10 m illio n 

to

$25 m illio n

I

$25 m illio n 

to

$50 m illio n

I . I 

$bU m illio n 

to

$100 m illio n

I . . . . .... 

$ iu u m in io n 

to

$500 m illio n

$5uu in iiiiu n 

to

$1 b illio n

$1 UIIIIUM

or

more

R atios o f to ta l capital accounts to to ta l assets o th e r th an 

cash and due fro m banks, and U.S. Treasury 

securities, and U.S. G overnm ent agency securities 

o f -

Less than 7 . 5 ............................................................................... 1,000 0 1 52 115 369 202 123 96 17 25

7.5 to 9 . 9 9 .................................................................................... 5,049 1 21 359 943 1,917 913 464 331 58 42

10.0 to 1 2 .4 9 ............................................................................... 3,774 3 62 560 1,024 1,305 468 198 128 16 10

12.5 to 1 4 .9 9 .............................................................................. 1,776 1 47 447 549 508 157 44 20 2 1

15.0 to 1 7 .4 9 ............................................................................... 832 3 33 289 262 178 38 15 13 1 0

17.5 to 1 9 .9 9 ............................................................................... 463 3 30 185 158 71 10 1 5 0 0

20.0 to 22.49 ............................................................................... 288 2 36 135 75 30 8 2 0 0 0

22.5 to 24.99 ............................................................................... 169 3 25 71 41 21 4 4 0 0 0

25.0 to 29.99 ............................................................................... 223 4 35 114 50 14 4 0 2 0 0

30.0 to 34.99 ............................................................................... 131 4 31 66 20 7 3 0 0 0 0

35.0 to 39.99 ............................................................................... 64 2 16 39 5 2 0 0 0 0 0

40.0 or m ore ............................................................................... 207 52 72 76 5 2 0 0 0 0 0

Ratio o f to ta l capital accounts to to ta l assets o f -

Less than 5 .................................................................................... 349 0 1 27 39 151 71 29 26 1 4

5 to 5 .9 9 ......................................................................................... 1,556 0 8 152 331 554 224 133 107 20 27

6 to 6 .9 9 ......................................................................................... 3,498 1 21 421 751 1,245 536 267 196 36 24

7 to 7 .9 9 ......................................................................................... 3,390 0 44 459 793 1,161 509 251 140 18 15

8 to 8 .9 9 ......................................................................................... 2,059 0 50 370 527 684 243 91 74 14 6

9 to 9 .9 9 ......................................................................................... 1,139 6 53 240 329 305 129 41 31 3 2

10 to 1 0 .9 9 .................................................................................... 659 6 39 179 209 153 48 15 9 1 0

11 to 1 1 .9 9 .................................................................................... 376 2 22 141 80 82 27 15 6 1 0

12 to 1 2 .9 9 .................................................................................... 200 4 18 74 54 36 6 4 4 0 0

13 to 1 4 .9 9 .................................................................................... 242 7 28 93 75 27 8 3 1 0 0

15 to 1 6 .9 9 .................................................................................... 125 4 22 59 22 15 2 0 1 0 0

17 or m o r e .................................................................................... 383 48 103 178 37 11 4 2 0 0 0

N um ber o f b a n k s ............................................................................... 13,976 78 409 2,393 3,247 4,424 1,807 851 595 94 78

208 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
INCOME OF INSURED BANKS

Table 114. Income of insured commercial banks in the United States (States and other areas), 1965-1973

Table 115. Ratios of income of insured commercial banks in the United States (States and other areas), 

1965-1973

Table 116. Income of insured commercial banks in the United States (States and other areas), 1973 

Banks grouped by class o f bank

Table 117. Income of insured commercial banks operating throughout 1973 in the United States (States 

and other areas)

Banks grouped by amount o f deposits

Table 118. Ratios of income of insured commercial banks operating throughout 1973 in the United States 

(States and other areas)

Banks grouped according to amount of deposits

Table 119. Income of insured mutual savings banks in the United States (States and other areas), 

1969-1973

Table 120. Ratios of income of insured mutual savings banks in the United States (States and other areas) 

1969-1973

The income data received and published by the Corporation relate to 

commercial and mutual savings banks insured by the Corporation.

Commercial banks

Prior to 1969, reports of income and dividends were submitted to the 

Federal supervisory agencies on either a cash or an accrual basis. In 1969, 

banks with assets of $50 million or more, and beginning in 1970, $25 million 

or more, were required to report consolidated income accounts on an accrual 

basis. Smaller banks continue to have the option of submitting their reports 

on a cash or an accrual basis, except that unearned discount on instalment 

loans, and income taxes, must be reported on an accrual basis. Then, there

was the requirement for consolidation of majority-owned subsidiaries and 

other non-bank subsidiaries meeting certain tests. For more detail on the 

method of cash or accrual reporting by banks, and on the inclusion of 

subsidiaries in consolidated statements of condition and income, refer to 

page 187 of 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.

In 1969 the Report of Income was revised to include a more detailed 

breakdown of investment income and separation of income from Federal 

funds transactions from other loan income. The accretion of bond discount 

was encouraged.

INCOME OF INSURED BANKS 209

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Federal Reserve Bank of St. Louis
Under "Operating expenses/' expense of Federal Funds transactions, 

which is now itemized separately, was included prior to 1969 under "Interest on borrowed money." "Interest on capital notes and debentures," now 

included in operating expenses, before 1969 was not treated as a charge 

against operating earnings or net income. Fixed assets were required to be 

carried on a cost less depreciation basis with periodic depreciation charged to 

expenses. Beginning in 1969, the item "Provision for loan losses" was in 

eluded under operating expenses. Prior to 1969, transfers to loan loss reserves were included as a charge against net income (but not against operating income); actual losses charged to loan loss reserves were treated as a 

memorandum item (see discussion below).

Beginning in 1969, "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.

Income from securities gains and losses, reported both gross and after 

taxes, prior to 1969 was reported as separate gain or loss items. It is now 

included, along with a subtraction for minority interest in consolidated subsidiaries, before arriving at net income (after taxes).

The memorandum item total provision for income taxes includes applicable taxes on operating income, applicable taxes on securities gains and 

losses and extraordinary items, and tax effects on differences between the 

provision for loan losses charged to operating expense and transfers to the 

reserve for bad debt losses on loans. 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.) "Total provision for income taxes", 

as compared to "Provision for income taxes", tends to correspond more 

closely to actual income tax liability, however, these may differ due to 

accrual accounting (required of the larger banks in supervisory reports) versus cash accounting (permitted by IRS), and other factors.

In comparing the 1969-1973 reports with prior data, certain generalizations are applicable. Because of the inclusion of additional items in "Operating expenses", "Income before taxes or security gains or losses" is understated, compared with the current operating income of prior reports. On the 

other hand, "Net income" for years prior to 1969 tends to be somewhat 

understated because it includes transfers to bad debt reserves which would 

generally exceed the provision for loan losses. Table 115 provides several 

operating ratios which afford comparisons between years prior to 1969 and 

more recent earnings experience.

Mutual savings banks

For a discussion of the report of income and expenses for mutual savings 

banks in 1970 and previous years, 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 domistic branches, domestic bank premises 

subsidiaries, and other significant nonbanking domestic subsidiaries (see 

page 188).

Beginning in 1972, 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 1971. 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 expense. 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 1970 and prior years (table 119), the 

amounts shown for this expense item are "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.

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. Detailed data formerly reported on reconcilement of valuation adjustment provisions was almost entirely eliminated, except for a simple reconciliation of 

surplus.

210 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
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 bank members of the Federal Reserve System: Board of Governors 

of the Federal Reserve System.

Other insured banks: Federal Deposit Insurance Corporation.

R E P O R T IN G O F LOSSES A N D RESERVES FOR LOSSES ON LO ANS,

1948 - 1973

Commercial banks

Use of the reserve method of loan accounting was greatly encouraged 

when, in 1947, the Internal Revenue Service set formal standards for loan 

loss transfers to be permitted for Federal tax purposes. In their reports to 

the Federal bank supervisory agencies prior to 1948, insured commercial 

banks included in non-operating 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 1948, 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 these 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 1948, 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 non-operating 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 were 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 (see above). A new entry entitled "Provision for loan losses” was included under operating expenses. This item 

includes 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. Since 1969, banks continue to report transfers to 

and from reserves in memoranda section of the income statement, but this 

detailed information is not regularly published by the Corporation. (Beginning June 30, 1969, all loan loss reserves are shown on the right side of the 

condition statement; gross loans only are reported on the assets side.)

Mutual savings banks

While mutual savings banks reported loan losses and transfers to loss 

reserves prior to 1951, 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 1951, 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 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 do not have the option available to commercial banks 

of reporting losses based on recent years average experience.) A t the same 

time, all valuation reserves were merged into surplus accounts on statements 

of condition submitted to the Federal supervisory agencies.

INCOME OF INSURED BANKS 211

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Federal Reserve Bank of St. Louis
Table 114. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1965-1973

(A m o u n ts in thousands o f dollars)

Income item 1965 1966 1967 1968 19691 1970 1971 1972 1973

Operating income-total..................................................................................... ..

Interest and fees on loans2 ............................................................................

16,817,187

11,204,863

19,508,414

13,286,400

21,781,611

14,646,637

25,478,404

17,121,079

30,806,805

20,726,664

811,580

2,845,257

551,068

2,215,971

134,548

1,021,900

1,120,196

693,578

686,043

34,716,420

22,967,366

1,006,367

3,078,725

688,421

2,620,257

151,832

1,132,292

1,178,192

842,480 

1,050,488

36,364,008

23,069,354

871,167

3,395,663

916,559

3,127,136

238,033

1,257,807

1,231,470

989,432

1,267,387

40,247,555

25,630,498

1,026,550

3,396,365

1,144,761 

3,493,981 

322,239 

1,366,455 

1,262,022

1,083,104

1,521,580

53,063,327

35,375,638

2,486,695

3,465,192

1,472,467

3,864,785

371,987

1,459,879

1,326,992

1,251,651

1,961,041

Interest on U.S. Treasury securities.............................................................

Interest and dividends on securities of other U.S. Government

2,224,711 2,317,794 2,601,900 3,004,655

Interest and dividends on other securities3 .................................................

Trust department incom e..............................................................................

Service charges on deposit accounts.............................................................

Other service charges, collection and exchange charges, commissions,

and fees .....................................................................................................

Other operating incom e.................................................................................

Operating expense-total4 ...................................................................................

Salaries and wages of officers and employees.............................................

Pensions and other employee b e n e fits ........................................................

Interest on deposits.......................................................................................

Expense of Federal funds purchased and securities sold under

agreements to repurchase5 .................................................................

1,285,287

689,628

842,775

304,276

265,647

1,531,517

756,130

915,049

354,036

347,488

1,904,886

820,269

987,187

411,021

409,711

2,376,223

906,206

1,055,964

478,028

536,249

12,486,120

3,762,024

525,692

5,070,781

14,561,852

4,095,742

598,768

6,259,472

16,553,642

4,537,896

667,345

7,379,863

19,354,237

5,101,803

755,744

8,681,705

24,076,791

5, '78,812 

903,469 

9,789,893

1,205,787

433,120

100,742

1,073,339

1,331,926

258,587

773,072

521,064

3,397,493

27,588,602

6,656,884

1,060,167

10,483,795

1,400,838

464,568

104,730

1,254,520

1,555,734

301,214

909,090

703,150

4,550,860

29,650,981

7,202,972

1,192,011

12,217,994

1,095,648

139,388

142,381

1,410,190

1,730,402

320,212

1,018,128

867,260

4,365,009

32,996,608

7,754,773

1,330,440

13,844,020

1,429,171

115,240

213,532

1,583,538

1,926,695

343,157

1,087,844

973,238

4,664,812

44,329,800

8,574,731

1,553,077

19,834,817

3,899,016

503,941

254,458

1,782,956

2,152,621

369,665

1,201,241

1,264,695

5,460,868

Interest on other borrowed money5 .............................................................

Interest on capital notes and debentures4 .................................................

189,519 301,768 266,476 528,986

Occupancy expense of bank premises, n e t.................................................

Gross occupancy expense .....................................................................

Less rental income ...................................................................................

Furniture and equipment, depreciation, rental costs, servicing, etc. .. . 

Provision for loan losses4 . ................

731,573 

898,440 

166,867 

411,889

802,060

980,444

178,387

458,695

873,541

1,059,785

186,244

533,846

970,034

1,173,423

203,389

631,564

Other operating expenses..............................................................................

Income before income taxes and securities gains or losses5 ...........................

1,794,642 2,045,347 2,294,675 2,684,401

6,730,014 7,127,818 6,713,027 7,250,947 8,706,527

Net current operating earnings (old basis) 4,331,067 4,946,562 5,227,969 6,124,167

Applicable income taxes® ............................................. 2,164,419

4,565,595

-237,707

-512,242

-274,535

4,327,888

6,914

3,994

-2,920

235

4,334,567

2,173,775

4,954,043

-103,695

-224,028

-120,333

4,850,348

-12,810

-35,865

-23,055

245

4,837,293

1,689,146

5,023,881

213,245

359,279

146,034

5,237,126

-639

-12,552

-11,913

282

5,236,205

1,707,495

5,543,452

92,456

166,730

74,274

5,635,908

19,153

23,953

4,800

663

5,654,398

2,121,100

6,585,427

-27,135

-73,458

--46,323

6,558,292

21,561

30,817

9,256

659

6,579,194

Income before securities gains or losses® ....................................................

Securities gains or losses net5 ........................................................................

G ross................................................................................................................ -4 2 6 -392,447 -4,312 -438,520

Net income before extraordinary items5 ..........................................................

Extraordinary charges or credits net5 ...............................................................

Gross .....................................................................................................

Taxes ................................................................................................................

Less minority interest in consolidated subsidiaries5 .........................................

Net income .......................................................................................

Recoveries charge-offs transfers from reserves net .................. -786,746 -839,869 -904,645 -992,665

212 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
3,543,895

1,029,162

927,423

101,739

3,714,246

1,029,906

911,585

118,321

4,319,012

1,177,154

1,020,988

156,166

4,692,982

1,267,044

1,086,889 

180,155

Total provision for income taxes........................................................................

Federal income ta x e s .....................................................................................

State and local income taxes ........................................................................

1,505,336

1,287,514

217,822

1,863,787

1,619,790

243,997

1,651,807

1,367,492

284,315

1,598,869

1,288,725

310,144

1,715,439

1,336,317

379,122

2,514,733 2,684,340 3,141,858 3,425,938

Dividends on capital-total7 .................................................................................

Cash dividends declared on common stock.................................................

Cash dividends declared on preferred stock7 .............................................

1,202,349

1,146,186

56,163

1,307,387

1,240,048

67,339

1,426,202

1,342,538 

83,664

1,589,114

1,488,670

100,444

1,769,314

1,762,279

7,035

2,040,027

2,033,288

6,739

2,230,556

2,225,125

5,431

2,196,868

2,193,052

3,816

2,429,330

2,425,633

3,697

Memoranda8

Recoveries credited to reserves:

On loans...........................................................................................................

On securities.....................................................................................................

Losses charged to reservesT

On loans...........................................................................................................

On securities.....................................................................................................

124,062

4,158

429,490

25,761

143,859

3,300

545,647

60,282

168,680

5,638

601,194

29,072

219,115

1,913

629,707

32,262

209,124

1,986

697,874

12,448

255,350

1,260

1,236,988

2,881

317,320

2,253

1,404,520 

3,714

363,663

6,243

1,250,989

4,333

388,846

2,061

1,548,033

5,440

Average assets and liabilities9

Assets-total .....................................................................................................

Cash and due from banks..............................................................................

U.S. Treasury securities.................................................................................

Obligations of States and political subdivisions10......................................

360,944,351

59,013,596

59,419,551

391,255,121

62,867,398

56,088,649

425,619,337

70,248,679

57,357,584

473,138,013

78,504,024

61,545,807

516,325,483

86,663,384 

56,724,08311 

58,011,20011 

11,839,13011 

283,479,251 

19,608,43511

543,880,408

89,089,607 

54,198,40711 

62,012,77111 

12,821,6871 1 

301,667,242 

24,090,69411

603,422,720

95,673,527 

59,923,56211 

74,606,15311 

18,216,0641 1 

327,633,687 

27,369,7271 1

679,113,973

102,969,933 

61,978,49011 

84,210,39611 

23,863,05111 

376,543,347 

29,548,75611

776,702,572

110,168,143 

58,603,92511 

89,241,78011 

29,355,71511 

453,238,907 

36,094,10211

Other securities10........................................................................................

Loans and discounts....................................................................................

All other assets.............................................................................................

Liabilities and capital—total

Total deposits...............................................................................................

Demand deposits....................................................................................

Time and savings deposits.....................................................................

Borrowings and other lia b ilitie s ................................................................

Total capital accounts ................................................................................

Capital notes and debentures.................................................................

Equity capital........................................................................................

Number of employees (end of period)............................................................

Number of banks (end of period).....................................................................

41,540,772

191,391,533

9,578,899

47,054,812

214,381,628

10,862,634

55,213,293

230,636,149

12,163,632

65,318,374

253,678,319

14,091,481

360,944,351

315,643,533

178,089,360

137,554,173

16,479,957

28,820,861

1,327,781

27,493,080

391,255,121

340,336,714 

185,336,407

155,000,307

20,067,721 

30,850,686 

1,710,785

29,139,$01

425,619,337

368,906,501 

194,982,924

173£23,577

23,836,162 

32,876,674 

1,884,844

30£91,830

473,138,013

407,508,260

213,628,389

193,879,871

30,297,605

35,332,148

2,096,175

33^35,973

516,325,483

431,468,339 

230,490,525

200$77,814

46,642,486 

38,214,658 

2,027,427

36,187,231

543,880,408

449,522,141 

237,588,875

211 £33,266

53,212,878 

41,145,389 

2,047,429

39,097,960

603,422,720

507,101,968

251,447,347

255,654,621

51,507,005

44,813,747

2,548,014

42265,733

679,113,973

568,240,268

271,122,732

297,117,536

61,179,885

49,693,820

3,546,497

46,147,323

776,702,572

640,806,208

293,708282

347,097,926

80,677,846

55,218,518

4,044,715

51,173,803

732,163 777,361 815,037 866,725 904,008 959,867 980,660 1,025,997 1,093,616

13,547 13,541 13,517 13,488 13,473 13,511 13,612 13,733 13,976

I Figures before 1969 may differ slightly from those published by the Board of Governors of the Federal Reserve System and the Comptroller of the Currency because of differences in rounding techniques. Revisions in Report of Income in 1969 are 

discussed on pp. 209-211 also see notes to tables.

2"lncome on Federal funds sold" was included in "Interest and discount on loans" in 1968 and prior years (see 1968 report, p. 198).

3lncome from "Securities of other U.S. Government agencies and corporations" and from "Obligations of States and political subdivisions" were included in income from "Other securities" in 1968 and prior years.

4"lnterest on capital notes and debentures" and "Provision for loan losses" not included in "Operating expense-total" in 1968 and prior years.

5"Expense of Federal funds purchased and securities sold under agreements to repurchase" was included in "Interest on borrowed money" in 1968 and prior years.

6 Data are not available prior to 1969. See page 210 of this report.

7ln 1968 and prior years, "Dividends declared on preferred stock" was reported in combination with "Interest on capital notes and debentures."

in clu d e s only recoveries credited to, and losses charged to, reserves. All other recoveries and losses on loans and securities are credited to, and charged to, undivided profits and are included above.

9Averages of amounts reported at beginning, middle, and end of year. 1965-1968 averages of securities and loans have been revised to gross basis.

10ln 1968 and prior years, "Obligations of States and political subdivisions" were included in "Other securities.”

I I Securities held in trading accounts are included in "A ll other assets."

M

GOINCOME OF INSURED BANKS

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 115. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1965-1973

Incom e item 1965 1966 1967 1968 1969 1970 1971 1972 1973

A m ou n ts per $ 100 o f operating incom e

O perating in c o m e - to ta l.................................................................................................. $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $ 100.00 $100.00 $ 100.00

Incom e on loans1 ......................................................................................................... 66.63 68.11 67.24 67.20 69.91 69.05 65.84 66.23 71.39

Interest on U.S. Treasury s e c u ritie s ...................................................................... 13.23 11.88 11.95 11.79 9.23 8.87 9.34 8.44 6.53

7 19 7 55 8.60 8.65 7.29

Interest and dividends on other securities3 .......................................................... 7.64 7.85 8.74 9.33 2.23 2.42 3.17 3.64 3.48

T rust departm ent incom e ........................................................................................ 4.10 3.88 3.77 3.56 3.32 3.26 3.46 3.40 2.75

Service charges on deposit accounts .................................................................... 5.01 4.69 4.53 4.14 3.64 3.39 3.39 3.14 2.50

Other charges, com m issions, fees, etc..................................................................... 1.81 1.81 1.89 1.88 2.25 2.43 2.72 2.67 2.36

1 .JU 1.78 1.88 2.10 2.23 3.03 3.48 3.78 3.70

Operating e xp e n s e -to ta l4 ............................................................................................... 74.25 74.64 76.00 75.96 78.15 79.47 81.54 81.98 83.58

Salaries and w a g e s ....................................................................................................... 22.37 20.99 20.83 20.02 19.08 19.18 19.81 19.27 16.17

Pensions and other b e n e fits ..................................................................................... 3.13 3.07 3.07 2.97 2.93 3.05 3.28 3.30 2.93

Interest on tim e and savings de p o sits.................................................................... 30.15 32.09 33.88 34.07 31.78 30.20 33.60 34.40 37.40

Interest on borrow ed m oney5 ................................................................................ 1.13 1.55 1.22 2.08 5.65 5.67 3.79 4.37 8.78

Occupancy expense of bank premises, n e t.......................................................... 4.35 4.11 4.01 3.81 3.48 3.61 3.88 3.93 3.36

Furniture and equipm ent, etc.................................................................................. 2.45 2.35 2.45 2.48 2.51 2.62 2.80 2.70 2.26

1.69 2.03 2.38 2.42 2.38

O ther operating expenses ....................................................................................... 10.67 10.48 10.54 10.53 11.03 13.11 12.00 11.59 10.30

Incom e before incom e taxes and securities gains or losses................................... 21.85 20.53 18.46 18.02 16.42

Net curre nt operating earnings (old b a s is )............................................................ 25.75 25.36 24.00 24.04

A m ounts per $100 o f to ta l assets

Operating in c o m e - to ta l................................................................................................. 4.66 4.99 5.12 5.38 5.97 6.38 6.03 5.93 6.83

Net curre n t operating earnings (old basis) . . 1.20 1.26 1.23 1.29

Incom e before incom e taxes and securities gains or losses .......... 1.30 1.31 1.11 1.07 1.12

Net incom e6 ........................................................................................................................ .70 .69 .74 .72 .84 .89 .87 .83 .85

A m o un ts per $1 0 0 o f to ta l capital accounts

Net incom e6 ........................................................................................................................ 8.73 8.70 9.56 9.70 11.48 7 11.8 9 7 11.8 5 7 11.607 12.147

Cash dividends declared on com m on s to c k ............................................................... 3.98 4.02 4.08 4.21 4.61 4.94 4.97 4.41 4.39

N et a d ditions to capital fro m in c o m e ......................................................................... 4.56 4.46 5.22 5.20 6.71 6.80 6.71 6.96 7.51

A m o u nts per $100 o f e q u ity capital

N et incom e6 ........................................................................................................................ 9.15 9.21 10.14 10.31 11.98 12.37 12.39 12.25 12.86

Special ratios

Incom e on loans per $100 o f loans1 ........................................................................... 5.85 6.20 6.35 6.75 7.60 7.95 7.31 7.08 8.35

Incom e on U.S. Treasury securities per $100 o f U.S. Treasury securities . . . 3.74 4.13 4.54 4.88 5,02 5.68 5.67 5.48 5.91

Incom e on obligations o f States and p o litic a l subdivisions per $100 o f

obligations o f States and p o litica l subdivisions2 ................................................ 3.82 4.23 4.19 4.15 4.33

Incom e on o the r securities per $100 o f o th e r securities3 ................................... 3.09 3.25 3.45 3.64 5.79 6.55 6.34 6.15 6.28

Service charges per $ 100 o f demand d e p o s its .......................................................... .47 .49 .51 .49 .49 .50 .49 .47 .45

Interest paid per $100 o f tim e and savings deposits................................................ 3.69 4.04 4.24 4.48 4.87 4.95 4.78 4.66 5.71

Num ber o f banks (end o f p e r io d ) ................................................................................ 13,547 13,541 13,517 13,488 13,473 13,511 13,612 13,733 13,976

1 1ncludes Federal funds sold.

2 "ln te re s t on State and local governm ent o b lig a tio n s " included in "In te re s t and dividends on other securities" in 1968 and p rio r years. Incom e fro m securities held in trading accounts is included in "O th e r operating incom e",

in c lu d e s interest and dividends on securities o f o th e r U.S. G overnm ent agencies and corporations; includes interest on State and local governm ent obligations before 1969.

4 "ln te re s t on capital notes and debentures", w hich is included in "In te re s t on borrow ed m o n e y" in 1 9 6 9 -1 9 7 3 , and "P rovision fo r loan losses" were n o t included in "O perating e x p e n s e -to ta l" in 1968 and p rio r years,

in c lu d e s interest on capital notes and debentures (see note 4) and Federal funds purchased.

6 Because o f changes in the fo rm of reporting by banks, figures in 1 9 6 9 -1 9 7 3 are no t fu lly comparable w ith those in 1968 and p rio r years; see table 114 and pp. 209-210.

7 ln co m puting th is ratio , interest on capital notes and debentures has been added to net incom e, w ith tax adjustm ent at the regular corporate tax rate.

214 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 116. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1973

BANKS GROUPED BY CLASS OF BANK 

(Amounts in thousands of dollars)

Incom e item Total

M embers F.R . System N o n ­

members 

F.R . System

Operating 

th ro u g h o u t 

the year

Operating 

less than 

N ational State fu ll year

O perating in c o m e -to ta l ....................................................................................................................................... 53,036,327 31,214,233 10,504,091 11,318,003 52,963,685 72,642

Interest and fees on lo a n s ................................................................................................................................ 35,375,638 21,054,480 7,214,249 7,106,909 35,340,932 34,706

Incom e on federal fu n d s sold and securities purchased under agreements to re s e ll.................... 2,486,695 1,454,717 3 92,182 639,796 2,467,925 18,770

Interest on U.S. Treasury s e c u ritie s ........................................................................................................... 3,465,192 1,821,807 570,804 1,072,581 3,458,712 6,480

Interest and dividends on securities o f oth e r U.S. G overnm ent agencies and corporations . . . 1,472,467 725,749 217,673 529,045 1,469,568 2,899

Interest on oblig atio n s o f States and p o litic a l s u b d iv is io n s ................................................................ 3,864,785 2,230,757 696,976 937,052 3,862,232 2,553

Interest and dividends on oth e r securities ............................................................................................... 371,987 203,664 64,722 103,601 370,990 997

T ru st departm ent in c o m e ................................................................................................................................ 1,459,879 820,368 523,977 115,534 1,459,685 194

Service charges on deposit a c c o u n ts ........................................................................................................... 1,326,992 752,699 187,039 387,254 1,324,919 2,073

O ther service charges, c o lle ctio n and exchange charges, comm issions, and fe e s ......................... 1,251,651 815,651 182,800 253,200 1,249,863 1,788

O ther operating in c o m e .................................................................................................................................. 1,961,041 1,334,341 453,669 173,031 1,958,859 2,182

Operating e x p e n s e -to ta l....................................................................................................................................... 44,329,800 26,246,894 8,791,932 9,290,974 44,253,367 76,433

Salaries and wages o f o ffice rs and e m p lo y e e s .......................................................................................... 8,574,731 4,921,969 1,651,339 2,001,423 8,555,094 19,637

Pensions and oth e r em ployee b e n e fits ...................................................................................................... 1,553,077 905,315 329,383 318,379 1,550,826 2,251

Interest on d e p o s its .......................................................................................................................................... 19,834,817 11,666,030 3,716,464 4,452,323 19,813,712 21,105

Expense o f federal funds purchased and securities sold under agreements to re p u rch a se ____ 3,899,016 2,681,225 1,083,381 134,410 3,897,955 1,061

Interest on oth e r borrow ed m o n e y .............................................................................................................. 503,941 304,008 170,230 29,703 503,266 675

Interest on capital notes and debentures.................................................................................................... 254,458 130,390 73,601 50,467 254,318 140

Occupancy expense o f bank premises, n e t ............................................................................................... 1,782,956 999,201 408,809 374,946 1,777,867 5,089

Gross occupancy e x p e n s e ........................................................................................................................ 2,152,621 1,246,152 478,063 428,406 2,147,215 5,406

Less rental incom e....................................................................................................................................... 369,665 246,951 69,254 53,460 369,348 317

F u rn itu re and equipm ent, depreciation, rental costs, servicing, etc.................................................. 1,201,241 718,746 205,212 277,283 1,198,441 2,800

Provision fo r loan losses.................................................................................................................................. 1,264,695 758,146 235,970 270,579 1,262,581 2,114

O ther operating e xpenses............................................................................................................................... 5,460,868 3,161,864 917,543 1,381,461 5,439,307 21,561

Incom e before incom e taxes and securities gains or losses........................................................................ 8,706,527 4,967,339 1,712,159 2,027,029 8,710,318 -3 ,7 9 1

Applicable incom e t a x e s ....................................................................................................................................... 2,121,100 1,194,886 458,093 468,121 2,121,430 -3 3 0

Incom e before securities gains o r lo sse s........................................................................................................... 6,585,427 3,772,453 1,254,066 1,558,908 6,588,888 -3 ,4 6 1

N et securities gains o r losses ................................................................................................................................ - 2 7 ,1 3 5 -1 3 ,5 0 9 -1 6 ,2 4 6 2,620 -2 7 ,2 4 7 112

G ro s s ..................................................................................................................................................................... -7 3 ,4 5 8 -3 9 ,4 6 9 -3 6 ,4 8 1 2,492 -7 3 ,5 8 4 126

Taxes ..................................................................................................................................................................... -4 6 ,3 2 3 -2 5 ,9 6 0 -2 0 ,2 3 5 -1 2 8 -4 6 ,3 3 7 14

Net incom e before e x tra o rd in a ry ite m s ........................................................................................................... 6,558,292 3,758,944 1,237,820 1,561,528 6,561,641 -3 ,3 4 9

E xtra o rd in a ry charges or credits, n e t ................................................................................................................. 21,561 9,025 6,112 6,424 21,676 -1 1 5

G ro s s ..................................................................................................................................................................... 30,817 11,844 11,207 7,766 30,959 -1 4 2

Taxes ..................................................................................................................................................................... 9,256 2,819 5,095 1,342 9,283 - 2 7

INCOME OF INSURED BANKS 215

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 116. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1973-CONTINUED

BANKS GROUPED BY CLASS OF BANK 

(Amounts in thousands of dollars)

Incom e item Total

Members F.R. System N o n ­

m embers 

i-.h . System

O perating 

th ro u g h o u t 

tne year

Operating 

less than 

fu ii yearN ational

I

state

Less m in o rity interest in consolidated subsidiaries........................................................................................ 659

6,579,194

302

3,767,667

357

1,567,595

659

N et in c o m e ................................................................................................................................................................. 6,582,658

D ividends on c a p ita l-to ta l ...................................................................................................................................

Cash dividends declared on com m on s to c k ................................................................................................

Cash dividends declared on preferred s to c k ...............................................................................................

1,243,932 - 3 ,4 6 4

2,429,330

2,425,633

3,697

1,449,392

1,446,994

2,398

569,079

568,917

162

410,859

409,722

1,137

2,428,521

2 ,424,824

3,697

809

809

T o ta l provision fo r incom e ta x e s .........................................................................................................................

Federal incom e ta x e s ........................................................................................................................................

State and local incom e taxes .........................................................................................................................

1,715,439

1,336,317

379,122

932,058

707,493

224,565

363,542

268,941

94,601

419,839

359,883

59,956

1,716,063

1,336,947

379,116

- 6 2 4

- 6 3 0

6

M e m oranda1

Recoveries credited to reserves:

On lo a n s .................................................................................................................................................................

On s e cu ritie s..........................................................................................................................................................

388,846

2,061

1,548,033

5,440

250,088

1,174

978,921

3,905

58,889

48

268,946

368

79,869

839

300,166

1,167

388,673

2,061

1,547,074

5,440

173

Losses charged to reserves:

On lo a n s .................................................................................................................................................................

On se cu ritie s..........................................................................................................................................................

959

N um ber o f em ployees, December 3 1 .................................................................................................................

N um ber o f banks, Decem ber 31 .........................................................................................................................

1,093,616 629,899 186,815 276,902 1,089,285 4,331

13,976 4,661 1,076 8,239 13,644 332

1 1ncludes o n ly recoveries cre d ited , and losses charged, to reserves. A ll o th e r recoveries and losses on loans and securities are credited and charged to undivided p ro fits and are included above.

216 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 117. INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1973 IN THE UNITED STATES

(STATES AND OTHER AREAS)

BANKS GROUPED BY AMOUNT OF DEPOSITS 

(Amounts in thousands of dollars)

Banks w ith deposits o f

Incom e item A ll

banks1

Less 

than 

$1 m illio n

$1 m illio n 

to

$2 m illio n

$2 m illio n 

to

$5 m illio n

$5 m illio n 

to

$10 m illio n

$10 m illio n 

to

$25 m illio n

$25 m illio n 

to

$50 m illio n

$50 m illio n 

to

$100 m illio n

$100 m illio n 

to

$500 m illio n

$500 m illio n 

to

$1 b illio n

$1 b illio n 

or 

more

Operating in c o m e -to ta l ................................................... 52,963,685 1,908 36,816 561,984 1,652,726 4,997,450 4,556,057 4,255,577 9,279,825 5,453,582 22,187,760

Interest and fees on lo a n s ........................................... 35,340,932 857 18,755 307,904 955,666 3,001,887 2,873,541 2 ,722,109 6,091,620 3,744,931 15,623,662

Incom e on Federal fu n ds sold and securities 

purchased under agreements to r e s e ll............. 2,467,925 310 4,755 57,632 142,976 341,509 226,316 197,092 4 12,696 224,434 860,205

Interest on U.S. Treasury s e c u ritie s ....................... 3,458,712 378 7,107 94,051 221,008 553,962 419,431 343,786 619,450 335,340 864,199

Interest and dividends on securities o f oth e r 

U.S. G overnm ent agencies and c o rp oratio n s . 1,469,568 162 2,869 40,393 101,809 258,599 215,712 185,376 311,715 84,811 268,122

Interest on oblig a tion s o f States and

p o litic a l s u b d iv is io n s .............................................. 3,862,232 29 728 22,998 113,638 433,783 431,475 414,8 3 4 791,070 414,262 1,239,415

Interest and dividends on o th e r securities .......... 370,990 28 347 4,689 10,945 39,999 39,014 43,709 80,128 41,483 110,648

T ru st dep a rtm e n t in c o m e ........................................... 1,459,685 0 2 656 1,747 17,506 35,776 66,721 287,885 177,074 872,318

Service charges on deposit a c c o u n ts ....................... 1,324,919 60 1,065 16,395 56,859 184,667 171,225 139,424 253,448 128,259 373,517

O ther service charges, c o lle ctio n and exchange 

charges, com m issions, and fe e s .......................... 1,249,863 41 729 11,215 30,557 92,037 88,508 90,318 254,883 164,823 516,752

O ther operating in c o m e .............................................. 1,958,859 43 459 6,051 17,521 53,501 55,059 52,208 176,930 138,165 1,458,922

O perating e x p e n s e - to ta l................................................... 44,253,367 1,429 28,699 442,088 1,305,383 3,972,522 3,707,137 3,53 7,636 7,86 4,660 4,609,090 18,784,723

Salaries and wages o f o ffice rs and e m p lo y e e s . . . 8,555,094 660 9,862 121,601 307,426 846,510 760,345 721,765 1,604,717 887,578 3,294,630

Pensions and o th e r em ployee b e n e fits .................. 1,550,826 55 990 13,807 41,736 129,055 124,895 122,499 287,394 167,791 662,604

Interest on d e p o s its ..................................................... 19,813,712 286 9,781 196,701 627,372 1,982,973 1,839,074 1,738,173 3,527,961 1,941,662 7,949,729

Expense o f Federal fu n d s purchased and securities sold under agreements to repurchase . . . 3,897,955 0 24 433 3,222 15,684 34,421 74,103 476,9 0 6 457,910 2,835,252

Interest on o th e r borrow ed m o n e y ......................... 503,266 4 14 424 1,563 7,789 11,448 12,134 48,269 56,517 365,104

Interest on capital notes and debentures............... 254,318 0 4 257 1,476 8,249 13,300 16,190 48,901 35,026 130,915

Occupancy expense o f bank premises, n e t .......... 1,777,867 54 1,086 14,600 44,801 146,329 146,663 145,685 345,927 181,889 750,833

Gross occupancy e x p e n s e .................................... 2,147,215 60 1,126 15,464 47,762 157,321 163,852 172,359 429,289 251,604 908,378

Less rental incom e ................................................ 369,348 6 40 864 2,961 10,992 17,189 26,674 83,362 69,715 157,545

F u rn itu re and equipm ent, depreciation, rental 

costs, servicing, e tc.................................................. 1,198,441 42 877 13,337 39,108 117,588 114,856 109,863 268,470 142,111 392,189

Provision fo r loan losses.............................................. 1,262,581 65 1,025 11,895 37,049 111,766 101,516 91,123 193,654 138,961 575,527

O ther operating expenses........................................... 5,439,307 263 5,036 69,033 201,630 606,579 560,619 506,101 1,062,461 599,645 1,827,940

Incom e before incom e taxes and securities gains 

or lo s s e s ............................................................................ 8,710,318 479 8,117 119,896 347,343 1,004,928 848,920 717,941 1,415,165 844,492 3,403,037

A pplicable incom e t a x e s ................................................... 2,121,430 89 2,017 30,521 85,633 244,411 195,802 150,032 294,487 194,122 924,316

INCOME OF INSURED BANKS 217

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 117. INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1973 IN THE UNITED STATES

(STATES AND OTHER AREAS)— CONTINUED 

BANKS GROUPED BY AMOUNT OF DEPOSITS 

(Amounts in thousands of dollars)

Banks w ith deposits o f -

Incom e item A ll

h a n t c ”!

Less

th a n

$1 m illio n

$1 m illio n 

$2 m illio n

$2 m illio n 

$5 m illio n

$5 m illio n 

to

$10 m illio n

$10 m illio n

to

$25 m illio n

$25 m illio n 

$50 m illio n

$50 m illio n 

$100 m illio n

$100 m illio n

tn

$500 m illio n

$500 m illio n 

$1 b illio n

$1 b illio n 

more

Incom e before securities gains or lo sse s ....................... 6 ,5 8 8 ,8 8 8 390 6,100 89,375 261,710 760,517 653,118 567,909 1,120,678 650,370 2,478,721

N et securities gains o r lo s s e s ........................................... -2 7 ,2 4 7 1 23 -4 7 1 365 1,935 28 4 -2 ,5 2 2 -6 ,0 9 1 -4 ,7 6 1 -1 6 ,0 1 0

Gross.................................................................................... - 7 3 ,5 8 4 1 32 -5 3 0 774 1,648 - 3 1 6 - 4 ,7 7 4 -1 4 ,0 9 5 - 9 ,2 0 3 -4 7 ,1 2 1

Taxes ................................................................................. -4 6 ,3 3 7 0 9 - 5 9 409 - 2 8 7 - 6 0 0 - 2 ,2 5 2 - 8 ,0 0 4 -4 ,4 4 2 -3 1 ,1 1 1

N et incom e before e x tra o rd in a ry ite m s ....................... 6,561,641 391 6,123 88,904 262,075 762,452 653,402 565,387 1,114,587 645,609 2,462,711

E xtra o rd in a ry charges or credits, n e t ............................ 2 1 ,6 7 6 0 4 95 950 1,990 2,620 2,528 6,118 3,644 3,727

G ro s s ................................................................................. 30,959 0 3 121 1,328 2,036 3,654 3,707 8,002 6,663 5,445

Taxes ................................................................................. 9 ,283 0 - 1 26 378 46 1,034 1,179 1,884 3,019 1,718

Less m in o rity interest in consolidated s u b s id ia rie s .. 659 0 0 0 2 80 16 29 71 233 228

N et in c o m e ............................................................................ 6,5 8 2,6 5 8 391 6,127 88,999 263,023 764,362 6 56,006 567,886 1,120,634 6 49,020 2 ,466,210

D ividends on c a p ita l-to ta l .............................................. 2,428,521 85 1,530 17,492 51,515 169,373 176,677 178,863 4 51 ,8 9 4 2 95 ,2 4 4 1,085,848

Cash dividends declared on com m on s to c k .......... 2 ,42 4 ,8 24 85 1,530 17,489 51,480 169,107 176,481 178,393 450,887 295,049 1,084,323

Cash dividends declared on preferred s to c k .......... 3,697 0 0 3 35 266 196 470 1,007 195 1,525

T o ta l p rovision fo r incom e ta x e s .................................... 1 ,7 1 6 ,0 6 3 86 1,989 29,479 81,829 224,071 1 73,889 1 26,475 240,612 1 57,614 680,019

Federal incom e ta x e s ................................................... 1,336,947 74 1,822 26,723 73,712 200,893 154,251 107,344 197,398 133,061 441,669

State and local incom e t a x e s .................................... 3 7 9 ,1 1 6 12 167 2,756 8,117 23,178 19,638 19,131 43 ,214 24,553 238,350

M em oranda2

Recoveries credited to reserves:

On lo a n s ............................................................................ 388,6 7 3 3 348 4,613 15,989 47,667 42,251 3 4,044 69,019 38,457 136,282

On s e cu ritie s.................................................................... 2,061 0 0 0 45 241 462 801 298 0 214

Losses charged to reserves:

On lo a n s ............................................................................ 1,547,074 9 1,077 13,071 43,936 140,546 127,228 115,378 242,889 157,699 705,241

On securities .................................................................. 5,440 0 0 35 155 209 213 784 494 250 3,300

N um ber o f em ployees, December 3 1 ............................ 1,089,285 120 1,563 17,119 42,123 119,841 109,326 101,548 2 17,023 112,871 367,751

N um ber o f banks, December 3 1 ...................................... 13,644 35 326 2,242 3,205 4,418 1,804 848 594 94 78

1 T his group o f banks is th e same as the group show n in table 116 under th e heading "O perating th ro u g h o u t the year".

in c lu d e s o n ly recoveries cred ite d, and losses charged, to reserves. A ll oth e r recoveries and losses on loans and securities are credited, and charged, to undivided p ro fits and are included above.

218 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 118. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1973 IN THE UNITED STATES

(STATES AND OTHER AREAS)1 

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS

Banks w ith deposits o fIncom e item Less 

than 

$1 m illio n

$1 m illio n 

to

$2 m illio n

$2 m illio n 

to

$5 m illio n

$5 m illio n 

to

$10 m illio n

$10 m illio n 

to

$25 m illio n

$25 m illio n 

to

$50 m illio n

$50 m illio n 

to

$100 m illio n

$100 m illio n 

to

$500 m illio n

$500 m illio n 

to

$1 b illio n

$1 b illio n 

or 

more

A m o u n ts per $ 1 0 0 o f operating incom e 

O perating in c o m e - t o t a l........................................................................................... $ 100.00 $100.00 $100 .0 0 $10 0 .0 0 $ 1 00.00 $ 100.00 $ 100.00 $100.00 $ 1 00.00 $100.00

Incom e on loans2 ................................................................................................... 61.16 63.86 65.04 66.47 67.17 68.04 68.60 70.09 72.78 74.29

Interest on U.S. Treasury securities3 ............................................................. 19.81 19.30 16.73 13.37 11.13 9.21 8.08 6.68 6.15 3.89

Interest on State and local governm ent ob lig a tio n s3 .............................. 1.52 1.98 4.09 6.88 8.72 9.47 9.75 8.52 7.60 5.59

Interest and dividends on o th e r securities4 ................................................ 9.96 8.73 8.02 6.82 6.00 5.59 5.38 4.22 2.32 1.71

T ru st departm ent incom e ................................................................................. 0 .01 .12 .11 .35 .78 1.57 3.10 3.25 3.93

Service charges on deposit a cco u n ts............................................................... 3.15 2.89 2.92 3.44 3.71 3.76 3.27 2.73 2.35 1.68

O ther charges, com m issions, fees, etc............................................................. 2.15 1.98 2.00 1.85 1.85 1.94 2.12 2.75 3.02 2.33

O ther operating incom e3 ................................................................................... 2.25 1.25 1.08 1.06 1.07 1.21 1.23 1.91 2.53 6.58

Operating e x p e n s e -to ta l........................................................................................... 74.90 77.95 78.67 78.98 79.81 81.37 83.13 84.75 84.51 84.66

Salaries and w a g e s ................................................................................................ 34.59 26.79 21.64 18.60 17.01 16.69 16.96 17.29 16.27 14.85

Pensions and other b e n e fits .............................................................................. 2.88 2.69 2.46 2.52 2.59 2.74 2.88 3.10 3.08 2.99

Interest on tim e and savings d e p o s its ............................................................. 14.99 26.57 35.00 37.96 39.84 40.37 40.84 38.02 35.60 35.83

Interest on borrow ed m o n e y5 ......................................................................... .21 .11 .20 .38 .64 1.30 2.41 6.18 10.07 15.01

Occupancy expense o f bank premises, n e t .................................................. 2.83 2.95 2.60 2.71 2.94 3.22 3.43 3.73 3.33 3.38

F u rn itu re and equipm ent, etc............................................................................ 2.20 2.38 2.37 2.37 2.36 2.52 2.58 2.89 2.61 1.77

P rovision fo r loan losses ................................................................................... 3.41 2.78 2.12 2.24 2.24 2.23 2.14 2.09 2.55 2.59

O ther operating expenses................................................................................... 13.79 13.68 12.28 12.20 12.19 12.30 11.89 11.45 11.00 8.24

Incom e before incom e taxes and securities gains o r losses ......................... 25.10 22.05 21.33 21.02 20.19 18.63 16.87 15.25 15.49 15.34

A m o u n ts per $ 1 0 0 o f to ta l assets6

O perating in c o m e - t o t a l........................................................................................... 6.09 6.14 6.24 6.25 6.32 6.42 6.39 6.47 6.55 6.36

Incom e before incom e taxes and securities gains o r losses........................... 1.53 1.35 1.33 1.31 1.28 1.20 1.08 .99 1.01 .97

N et in c o m e .................................................................................................................... 1.25 1.02 .99 1.00 .97 .92 .85 .78 .78 .71

M em oranda8

Recoveries credited to reserves:

On lo a n s .................................................................................................................. .01 .06 .05 .06 .06 .06 .05 .05 .05 .04

On s e c u ritie s ........................................................................................................... 0 0 0

(7) (7) (7) (7) (7) 0

(7)

Losses charged to reserves:

On loans.................................................................................................................... .03 .18 .15 .17 .18 .18 .17 .17 .19 .20

On s e c u ritie s .......................................................................................................... 0 0

(7) (7) (7) (7) (7) (7) (7) (7)

INCOME OF INSURED BANKS 219

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 118. R ATIO S OF INCOM E OF IN SU RED CO M M ER CIAL BANKS O PER A TIN G T H R O U G H O U T 1973 IN TH E U N IT E D STATES

(STATES A N D OTHER A R E A S )1 -C O N T IN U E D

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS

Banks w ith deposits o f -

Incom e item Less 

than 

$1 m illio n

$1 m illio n 

to

$2 m illio n

. '

$2 m illion 

to

$5 m illion

$b m illio n 

to

$10 m illio n

. . . .... I 

u>iu m in ion 

to

$25 m illio n

i .::: i 

q>zo m illio n 

to

$50 m illio n

i ........... i

oou m illio n 

to

$100 m illio n

$1Gu m iiiiu n

to

$500 m illio n

$5GG m iiiiuM 

to

$1 b illio n

I u : , , : ! «J)I UIIIIUII

or

more

A m o u n ts per $100 o f to ta l capital accounts6

Net incom e9 ................................................................................................................... 9.09 9.21 11.03 12.38 12.97 12.63 11.87 11.16 11.19 10.84

Cash dividends declared on com m on s to c k .......................................................... 1.98 2.30 2.17 2.42 2.87 3.40 3.73 4.49 5.09 4.77

Net add itio n s to capital fro m in c o m e .................................................................... 7.11 6.91 8.86 9.96 10.09 9.23 8.13 6.66 6.10 6.07

M em oranda8

Recoveries credited to reserves:

On loans ................................................................................................................... .07 .52 .57 .75 .81 .81 .71 .69 .66 .60

On s e c u ritie s ............................................................................................................ 0 0 0

(7) (7) .01 .02 (7) 0(7)

Losses charged to reserves:

On loans ................................................................................................................... .21 1.62 1.62 2.07 2.38 2.45 2.41 2.42 2.72 3.10

On s e c u ritie s ............................................................................................................ 0 0 (7) .01 (7) (7) .02 (7) (7) .01

A m o u nts per $100 o f e q u ity ca pita l6

Net in c o m e ...................................................................................................................... 9.09 9.22 11.09 12.55 13.27 13.15 12.53 12.06 12.43 11.98

Special ra tio s6

Incom e on loans per $100 o f loans2 .................................................................... 7.87 7.42 7.50 7.57 7.59 7.65 7.61 7.72 7.82 7.72

Incom e on U.S. Treasury securities per $100 o f U.S. Treasury securities3 5.89 6.09 6.38 6.42 6.47 6.54 6.48 6.24 6.29 5.97

Incom e on obligations o f States and p o litic a l subdivisions per $100

o f obligations o f States and p o litic a l subdivisions3 .................................... 4.63 3.91 3.85 3.95 4.06 4.23 4.27 4.27 4.33 4.28

Incom e on o th e r securities per $100 o f o th e r securities4 ................................. 4.72 5.37 4.96 4.92 5.50 6.12 6.19 6.10 5.66 4.91

Service charges per $100 o f demand d e p o s its ..................................................... .31 .35 .44 .56 .64 .68 .59 .47 .40 .29

Interest paid per $100 o f tim e and savings deposits ........................................ 4.06 4.43 4.55 4.64 4.78 4.94 5.03 5.17 5.40 5.89

N um ber o f banks, December 3 1 ,1 9 7 3 ................................................................. 35 326 2,242 3,205 4,418 1,804 848 594 94 78

1 This group o f banks is the same as the group shown in table 116 under heading "O perating th ro u g ho u t the year",

in c lu d e s Federal funds.

3 lncom e fro m securities held in trading accounts is included in "O th e r operating incom e",

in c lu d e s interest and dividends on securities o f o th e r U.S. G overnm ent agencies and corporations,

in c lu d e s interest on capital notes and debentures and Federal fu nd s purchased.

6 Ratios are based on assets and lia b ilitie s reported at end o f year.

7 Less than 0.005.

in c lu d e s o n ly recoveries credited, and losses charged to reserves (see table 117, note 2).

9 Reported data are adjusted (see table 115, note 7).

220 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 119. INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1969-1973 

(Amounts in thousands of dollars)

Incom e item

Operating in c o m e - t o t a l......................................................................................................................................................

Interest and fees on real estate m ortgage loans, n e t ............................................................................................

In te r e s t a n d fe es o n re a l e s ta te m o rtg a g e lo a n s , g r o s s ..................................................................................

Less: M o rtg a g e s e rv ic in g f e e s ...............................................................................................................................

Interest and fees on o th e r loans ...............................................................................................................................

Interest on U.S. G overnm ent and agency securities2 .........................................................................................

Interest on co rp o ra te b o n d s .........................................................................................................................................

Interest on State, c o u n ty , and m u n icip a l ob lig a tion s2 .......................................................................................

Interest on o th e r bonds, notes, and debentures2 .................................................................................................

Dividends on corp o ra te s to c k 2 .......................................................... .........................................................................

Incom e fro m service o p e ra tio n s ..................................................................................................................................

O ther operating in c o m e .................................................................................................................................................

O perating e x p e n s e s -to ta l....................................................................................................................................................

Salaries ...............................................................................................................................................................................

Pensions and o th e r em ployee b e n e fits .....................................................................................................................

Interest on b o rro w e d m o n e y .......................................................................................................................................

O ccupancy expense o f bank premises (in clu d in g taxes, depreciation, maintenance, rentals), n e t____

F u rn itu re and equ ip m e n t (in clu d in g recurring d e p re c ia tio n )..........................................................................

A ctual net loan losses (charge-offs less recoveries)..............................................................................................

O ther opera tin g expenses..............................................................................................................................................

N et operating incom e before inte re st and dividends on d e p o s its ..........................................................................

Interest and dividends on d e p o s its -to ta l .....................................................................................................................

Savings deposits2 ..............................................................................................................................................................

O ther tim e deposits2 ......................................................................................................................................................

N et operating incom e a fte r interest and dividends on d e p o s its .............................................................................

N et realized gains (or losses) o n - to ta l ..........................................................................................................................

Securities ..........................................................................................................................................................................

Real estate m ortgage lo a n s ............................................................................................................................................

Real e s ta te ..........................................................................................................................................................................

O ther tra n s a c tio n s ...........................................................................................................................................................

Less m in o rity in te re st in consolidated subsidiaries2 .................................................................................................

N et incom e before ta x e s ......................................................................................................................................................

Franchise and incom e ta x e s -to ta l ..................................................................................................................................

Federal incom e t a x .........................................................................................................................................................

State and local franchise and incom e t a x e s ...........................................................................................................

N et in c o m e ...............................................................................................................................................................................

1969 1970 1971 1972 1973

3,581,559 3,874,870 4,52 9,014 5 ,295,449 6,064,895

2,768,370 2,963,859 3,275,859 3,690,871 4,171,520

2 ,8 3 5 ,7 0 8 3 , 0 3 1 ,1 5 7 3 , 3 4 4 ,0 5 7 3 , 7 6 0 ,9 0 8 4 ,2 4 0 ,9 2 6

6 7 ,3 3 8 6 7 ,2 9 8 6 8 ,1 9 8 7 0 ,0 3 7 6 9 ,4 0 6

121,172 154,230 163,675

2 68,370

178,126

3 52,297

283,506

414,359

633,835 693,986 546,033

12,789

75,489

105,592

726,665

30,857

91,856

126,256

7 30,132

52,982

116,901

148,781

35,942 35,107 27,669 30,072 35,771

22,240 27,688 53,538 68,449 110,943

44 3 ,0 4 9 1 5 2 0 ,8 2 6 1 581,693 671,818 811,689

193,613 217,536 243,446 270,353 307,030

41,860 47,072 55,944 63,882 72,567

9 ,864 20,327 7,862 6,713 28,907

52,491 6 0,655 71,113 82,820 96,128

19,726 22,603 28,365 32,237 37,104

898 1,363 3,328 4,500 8,994

124,597 151,306 171,635 211,313 260,959

3,13 8,510 1 3 ,3 4 5 ,0 0 8 1 3,947,321 4,623,631 5,253,206

2,808,141 2,98 7,200 3 ,418,845

3 ,058,645

3 60,200

3 ,94 3,233

3 ,392,798

550,435

4,480,901

3 ,567,595

9 13,306

330,369 366,808 528,476 680,398 772,305

-5 9 ,4 5 7 1 -1 2 1 ,3 7 2 1 -5 8 ,2 8 6 -1 4 ,8 9 6 -9 2 ,3 5 7

-3 7 ,7 1 9 -9 1 ,7 6 0 -4 4 ,2 9 0 3,481 -6 5 ,9 7 3

-2 3 ,3 8 1 -2 6 ,3 3 4 -1 2 ,1 3 3 - 2 5 ,9 4 4 - 2 0 ,1 8 7

434 - 5 6 8 -1 ,6 9 0 - 5 0 9 - 6 7 3

1,209 -2 ,7 1 0 - 1 7 3 8,076

34

- 5 ,5 2 4

0

2 7 0 ,9 1 2 1 2 4 5 ,4 3 6 1 470,190 665,468 679,948

61,874 78,421 126,601 186,303 201,792

14,303 25,310 6 3,833 108,679 114,500

47,571 53,111 6 2,768 77,624 87,292

2 0 9 ,0 3 8 1 1 67,015 1 343,589 479,165 478,156

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 119. INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1969-1973-CONTINUED

(Amounts in thousands of dollars)

Incom e item 1969 1970 1971 1972 1973

Memoranda

Change in surplus accounts, net ........................................................................................................................................

D iscount on securities, to ta l2 .............................................................................................................................................

2 2 0 ,0 6 3 1 1 8 8 ,4 8 4 1 4 86,234

16,513

534,229

19,630

561,695

27,805

Average assets and liabilities3

A ssets-total4 ...........................................................................................................................................................................

Cash and due fro m banks .............................................................................................................................................

U.S. G overnm ent and agency securities4 .................................................................................................................

O ther securities4 ...............................................................................................................................................................

Real estate m ortgage loans4 ..........................................................................................................................................

O ther loans and discounts4 ..........................................................................................................................................

O ther real estate ...............................................................................................................................................................

A ll o th e r assets .................................................................................................................................................................

Liabilities and surplus acco unts-total4 ...........................................................................................................................

T o ta l d e p o s its ....................................................................................................................................................................

S a vin g s a n d tim e d e p o s its ........................................................................................................................................

D e m a n d d e p o s it s .......................................................................................................................................................

O ther lia b ilit ie s .................................................................................................................................................................

T o ta l surplus accounts4 ..................................................................................................................................................

63.518.853

715,778

3,865,250

8,254,868

48,091,156

1,463,714

38,345

1,089,742

63.518.853

57,834,645

5 7 ,3 0 4 J 9 9

5 2 9 ,6 4 6

888,123

4,796,085

6 5 .986.370

778,430

3 ,893,429

8 ,471,553

4 9 ,745,250

1,904,974

57,981

1,134,753

65.986.370

59,862,839

5 9 2 9 6 , 8 2 3

5 6 6 ,0 1 6

1,162,859

4,960,6 7 2

73 .661.663

1,156,181

4,437,6 6 6

11,932,355

52,364,759

2,309,498

75,520

1,385,684

7 3 .661.663

67,443,302

6 6 ,7 8 4 ,1 8 6

6 5 9 ,1 1 6

982,655

5,235,706

82.99 5.6 0 6

1,329,972

5,740,097

1 5,033,388

56,553,602

2,566,460

116,406

1,655,681

8 2.9 9 5 .6 0 6

76,226,170

7 5 ,4 7 2 ,1 9 4

7 5 3 2 7 6

1,074,401

5 ,695,035

9 0 .850.840

1,676,216

6 ,299,082

16,238,983

61,600,178

2,967,740

170,868

1,897,773

9 0 .850.840

8 3 ,212,412

8 2 ,3 5 0 ,2 3 7

8 6 2 2 0 5

1,381,121

6,257,277

N um ber o f em ployees (end o f perio d ) ........................................................................................................................... 26,105 2 7,505 30,134 32,866 35,668

N um ber o f banks (end o f p e r io d ) ..................................................................................................................................... 331 329 327 326 322

1 Figures have been revised to provide c o m p a ra b ility w ith 1 9 7 1 -1 9 7 3 data -se e page 210 fo r in fo rm a tio n on changes in reports in 1971.

2 Data are n o t available p rio r to 1971. See page 210.

3 For 1 9 6 9 -1 9 7 0 , averages o f am ounts fo r fo u r consecutive o ffic ia l call dates beginning w ith the end o f the previous year and ending w ith the fall call o f the c u rre n t year; fo r 1 9 7 1 -1 9 7 3 , averages o f am ounts 

reported at beginning, m id dle, and end o f year.

4 Averages fo r 1 9 6 9 -1 9 7 0 have been revised to a gross basis; see notes to table 110.

222 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 120. RATIOS OF INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1969-1973

Incom e item 1969 1970 1971 1972 1973

A m o u n ts per $ 1 0 0 o f operating incom e

O perating in c o m e - t o t a l................................................................................................................................................................... $ 1 0 0 .0 0 $10 0 .0 0 $ 1 0 0 .0 0 $ 100.00 $100.00

Interest and fees on real estate m ortgage lo a n s - n e t........................................................................................................ 77.30 76.49 72.33 69.70 68.78

Interest and fees on o th e r lo a n s ............................................................................................................................................... 3.38 3.98 3.61 3.36 4.68

5.93 6.65 6.83

Interest on corporate b o n d s ...................................................................................................................................................... 17.70 17.91 12.06 13.72 12.04

Interest on State, c o u n ty , and m un icip a l o blig a tio n s2 ................................................................................................... .28 .58 .87

1.67 1.74 1.93

D ividends on corporate s to c k 2 ................................................................................................................................................. 2.33 2.39 2.45

Incom e fro m service o p e ra tio n s .............................................................................................................................................. 1.00 .91 .61 .57 .59

O ther operating in c o m e .............................................................................................................................................................. .62 .71 1.18 1.29 1.83

O perating e x p e n s e -to ta l ................................................................................................................................................................ 1 2 .3 7 1 1 3 .4 4 1 12.84 12.69 13.38

Salaries ............................................................................................................................................................................................ 5.41 5.61 5.37 5.11 5.06

Pensions and o th e r em ployee b e n e fits .................................................................................................................................. 1.17 1.22 1.24 1.21 1.20

Interest on b orrow ed m o n e y ................................................................................................................................................... .27 .52 .17 .13 .48

Occupancy expense o f bank premises (in clu d in g taxes, depreciation, m aintenance, r e n ta ls ) - n e t.................. 1.47 1.57 1.57 1.56 1.58

F u rn itu re and e quipm ent (in clud in g recurring d e p re c ia tio n )....................................................................................... .55 .58 .63 .61 .61

A ctu a l net loan losses (charge-offs less re c o ve rie s)........................................................................................................... .02 .04 .07 .08 .15

O ther operating expenses........................................................................................................................................................... 3.48 3.90 3.79 3.99 4.30

N et operating incom e before interest and dividends on d e p o s its ....................................................................................... 8 7 .6 3 1 8 6 .5 6 1 8 7.16 87.31 86.62

Interest and dividends on d e p o s its -to ta l.................................................................................................................................... 78.41 77.09 75.49 75.49 73.88

Savings d e p o sits............................................................................................................................................................................. (2) (2) 67.54 64.07 58.82

O ther tim e d e p o s its ..................................................................................................................................................................... 7.95 10.39 15.06

N et operating incom e a fte r inte re st and dividends on d e p o s its ......................................................................................... 9 .2 2 1 9 .4 7 1 11.67 12.85 12.74

N et realized gains (or losses) o n - to ta l ....................................................................................................................................... - 1 . 6 6 1 — 3 .1 4 1 - 1 .2 9 - .2 8 - 1 .5 3

S e c u ritie s ......................................................................................................................................................................................... - 1 .0 5 — 2.37 - . 9 8 .07 - 1 .0 9

Real estate mortgage lo a n s ........................................................................................................................................................ - . 6 5 — .68 - .2 7 - .4 9 - .3 4

Real e s ta te ....................................................................................................................................................................................... .01 - .0 2 - . 0 4 -.0 1 - .0 1

O ther tra n s a c tio n s ....................................................................................................................................................................... .03 - .0 7 (5) .15 - .0 9

Less m in o rity interest in consolidated s u b s id ia rie s ................................................................................................................ (5)

Net incom e before ta x e s ................................................................................................................................................................... 7 .5 6 1 6 .3 3 1 10.38 12.57 11.21

Franchise and incom e ta x e s -to ta l .............................................................................................................................................. 1.72 2.02 2.79 3.52 3.33

Federal incom e tax ........................................................................................................................................................................ .40 .65 1.41 2.05 1.89

State and local franchise and incom e t a x e s ....................................................................................................................... 1.32 1.37 1.38 1.47 1.44

Net in c o m e ............................................................................................................................................................................................ 5 .8 4 1 4 .3 1 1 7.59 9.05 7.88

INCOME OF INSURED BANKS 223

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 120. RATIOS OF INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

1969— 1973— CONTINUED

Incom e item 1969 1970 1971 1972 1973

A m o u iiU pei oiO G ui tu ta i assets

O perating in c o m e - t o t a l................................................................................................................................................................... 5.64 5.87 6.15 6.38 6.68

Operating e x p e n s e -to ta l................................................................................................................................................................... .70 .79 .79 .81 .90

N et operating incom e before interest and dividends on d e p o s its ....................................................................................... 4.94 5.08 5.36 5.57 5.78

Interest and dividends on d e p o s its -to ta l .................................................................................................................................. 4.42 4.52 4.64 4.75 4.93

N et operating incom e a fte r interest and dividends on d e p o s its .......................................................................................... .52 .56 .72 .82 .85

N et realized gains (or losses)— t o t a l ............................................................................................................................................... - .0 9 - .1 9 - .0 8 - .0 2 - .1 0

N et incom e before ta x e s ................................................................................................................................................................... .43 .37 .64 .80 .75

Franchise and incom e ta x e s -to ta l ............................................................................................................................................... .10 .12 .17 .22 .22

N et in c o m e ............................................................................................................................................................................................. .33 .25 .47 .58 .53

S pecial ra tio s 3

Interest on U.S. G overnm ent and agency securities per $1 0 0 o f U.S. G overnm ent and agency securities4.......... 5.23 5.61 6.05 6.14 6.58

Interest and dividends on o th e r securities per $1 0 0 o f o th e r securities4 ........................................................................ 6.20 6.49 6.46

Interest and fees on real estate m ortgage loans per $1 0 0 o f real estate loans4 .............................................................. 5.76 5.96 6.26 6.53 6.77

Interest and fees on o th er loans per $100 o f oth e r loans4 .................................................................................................... 8.28 8.10 7.09 6.94 9.55

Interest and dividends on deposits per $100 o f savings and tim e d e p o s its ..................................................................... 4.90 5.04 5.12 5.22 5.44

Net incom e per $100 o f to ta l surplus accounts4 ...................................................................................................................... 4.36 3.37 6.56 8.41 7.64

N um ber o f banks (end o f p e r io d ) .................................................................................................................................................. 331 329 327 326 322

1, 2, 3 ,4 g ee notes t0 ta b |e •] -| g 

5 Less than 0.005.

224 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 121. 

Table 122.

Table 123. 

Table 124.

BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES;

DEPOSIT INSURANCE DISBURSEMENTS

Number and deposits of banks closed because of financial difficulties, 1934-1973

Insured banks requiring disbursements by the Federal Deposit Insurance Corporation during 

1973

Depositors, deposits, and disbursements in insured banks requiring disbursements by the 

Federal Deposit Insurance Corporation, 1934-1973

Banks grouped by class of bank, year o f deposit payoff or deposit assumption, amount o f

deposits, and State

Recoveries and losses by the Federal Deposit Insurance Corporation on principal disbursements 

for protection of depositors, 1934-1973

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 225

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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 d ifficulties are paid off, or when the deposits of a failing bank are assumed by 

another insured bank with the financial aid of the Corporation. In deposit 

payoff cases, the disbursement is the amount paid by the Corporation on 

insured deposits. In deposit assumption cases, the principal disbursement is 

the amount loaned to failing banks, or the price paid for assets purchased 

from them; additional disbursements are made in those cases as advances for 

protection of assets in process of liquidation and for liquidation expenses.

Noninsured bank failures

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 

failures of noninsured banks in 1973.

For detailed data regarding noninsured banks which suspended in the 

years 1934-1962, see the Annual Report for 1963, pp. 27-41. For 

1963-1972, see table 121 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, 1973.

226 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table 121. NUMBER AND DEPOSITS OF BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES, 1934-1973

Noninsured1

Without 

disbursements 

by FDIC2

With 

disbursements 

by FDIC3

Deposits (in thousands of dollars)

Noninsured1

W ithout 

disbursements 

by FDIC2

With 

disbursements 

by FDIC3

T o ta l.

1934.

1935.

1936.

1937.

1938.

1939.

1940. 

1941 .

1942.

1943.

1944.

1945.

1946.

1947.

1948. 

1949 . 

1950. 

1951 .

1952.

1953.

1954.

1955.

1956.

1957.

1958.

1959.

1960. 

1961 .

1962.

1963.

1964.

1965.

1966. 

1967 .

1968.

1969.

1970. 

1971 . 

1972. 

1973 .

61

32

72

83

80

72

48

16

23

5 

2

1 

2

6

3 

9 

5 

5

4

5

4

5 

3 

3 

9 

3 

2

9 

3 

2

4

3

9

84

6

3

6

52

6

3

7

7

12

5

2

3

9

26

69

76

73

60

43

14

20

5

2

1

1

5

3 

5

4 

2

3

4 

2

5 

2

2

4 

3

9

25

69

74

73

60

43

14

20

5

2

1

1

5

3

4

4 

2

3 

2

2

5 

2

1

4

3 

1

5

" 2

7

5 

7

4 

3 

9 

7

6

1 

6

2,237,988

37,332

19,987

28,100

34,205

60,722

160,211

142,787

29,797

19,541

12,525

1,915

5,695

494

7,207

10,674

9,217

5,555

6,464

3,313

45,101

2,948

11,953

11,690

12,502

10,413

2,593

7,965

10,611

4,231

23,444

23,867

45,256

106,171

10,878

22,524

40,133

52,826

132,032

99,786

971,312

141,700 2,096,288

35,364 1,968

583 13,404

592 27,508

528 33,677

1,038 59,684

2,439 157,772

358 142,429

79 29,718

355 19,186

12,525

1,915

5,695

147 347

167 7,040

10,674

2,552 6,665

42 5,513

3,056 3,408

143 3,170

390 44,711

1,950 998

11,953

360 11,330

1,255 11,247

2,173 8,240

2,593

1,035 6,930

1,675 8,936

1,220 3,011

23,444

’ ' 429 23,438

1,395 43,861

2,648 103,523

10,878

22,524

40,133

4234 52,403

132,032

79,304 20,482

971,312

85

328

26,449

2,055,141

1,968

13,319

27,508

33,349

59,684

157,772

142,429

29,718

19,186

12,525

1,915

5,695

347

7,040

10,674

5,475

5,513

3,408

3,170

18,262

998

11,953

11,330

1,163

8,240

2,593

6,930

8,936

23,444

23,438

43,861

103,523

10,878

22,524

40,133

52,403

132,032

20,482

971,312

For information regarding each of these banks, see table 22 in the Annual Report of the Federal Deposit Insurance Corporation for 1963, page 221 of the report for 1964, page 179 of the report for 1965, and page 183 of the 1966 report. One noninsured bank placed in receivership in 1934, with no deposits at time of closing, is omitted (see table 22, note 9). Deposits are unavailable for 7 banks.

2For information regarding these cases, see table 23 of the Annual Report for 1963.

3 For information regarding each bank, see the Annual Report for 1958, pp. 4 8 -8 3 and pp. 98-127, and tables regarding deposit insurance disbursements in subsequent annual reports. Deposits are adjusted as of December 31,1973, and exclude deposits for three cases requiring disbursements by the Corporation: 1 bank in voluntary liquidation in 1937 (payoff case no. 90); 1 noninsured bank in 1938 with insured deposits at date of suspension, its insurance status having been terminated prior 

to suspension (payoff case no. 162); and 1 foreign-owned bank closed in 1941 by order of the Federal Government (payoff case no. 234).

4 Revised.

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 227

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Federal Reserve Bank of St. Louis
Table 122. INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1973

CaSS

num ber Name and lo ca tio n

r io c n f

bank

N um ber of 

depositors or 

accounts1

Dat? o f closing nr 

deposit assumption

F irst paym ent to 

Hfipnsitnrs nr 

disbursem ent by 

FDIC

FDIC

disbursem ents

Receiver or liq u id a tin g agent 

or assuming bank

D eposit

p a y o ff

300 Delta S ecurity Bank 

and T ru st C om pany 

F errid ay, Louisiana

NM 2,758 January 1 9 ,1 9 7 3 January 2 5 ,1 9 7 3 $ 4 ,273,485 Federal D eposit Insurance C orporation

302 Elm Creek State Bank 

Elm Creek, Nebraska

NM 1,279 May 7 ,1 9 7 3 May 1 9 ,1 9 7 3 2,566,778 Federal Deposit Insurance C orporation

303 The F irst State Bank 

V e rn o n , Texas

NM 4,120 July 1 6 ,1 9 7 3 July 2 1 ,1 9 7 3 9 ,940,496 Federal Deposit Insurance C orporation

Deposit

assum ption

203 S kylin e N ational Bank 

Denver, C olorado

N 1,752 March 2 6 ,1 9 7 3 2,814,152 U nited Bank o f S kyline, 

N ational Association 

Denver, C olorado

204 First N ational Bank 

o f E ldora 

E ldora, Iowa

N 4,565 O ctober 5 ,1 9 7 3 4 ,733,802 Second N ational Bank 

Eldora, Iowa

205 U nited States N ational 

Bank

San Diego, C alifornia

N 335,000 O ctober 1 8 ,1 9 7 3 160,200,000 C rocker N ational Bank 

San Francisco, C alifornia

228 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Assets1 Lia bilitie s and capital accounts1

Case

num ber Cash and 

due fro m 

banks

U.S. G overnm ent 

ob ligations

O ther

securities

Loans,

discounts,

and

overdrafts

Banking 

house, 

fu rn itu re & 

fixtu re s

O ther

real

estate

O ther

assets

T otal Deposits O ther

lia b ilitie s

Capital

stock

O ther

capital

accounts

Deposit

p a y o ff

300 1,534 ,9 3 4 24,726 433,421 6,906,511 130,001 750,367 9 ,779,958 8,079,169 874,257 250,000 576,532

302 71,033 575,189 338,385 2,151,595 40,624 - 9,249 3,186,075 2,914,863 - 150,000 121,212

303 2,808,6 0 9 1,784,185 1,138,632 6,179,927 267,085 86,006 3,977,595 16,242,039 14,797,185 250,000 400,000 794,854

Deposit

assum ption

203 26 2 ,5 9 2 2 ,5 3 5 ,6 3 4 139,325 3,442,277 59,070 88,226 6,527,124 6,005,967 206,284 280,000 34,874

204 664 ,3 7 8 1,269,0 3 5 1,042,540 4,286,574 111,488 - 697,947 8 ,071,962 7,540,272 102,180 150,000 279,509

205 1 1 3 ,6 8 6 ,7 0 4 8 7 ,7 2 6 ,7 6 0 264,39 7 ,88 2 596,806,197 39,631,528 2,499,307 161,119,721 1,2 6 5 ,8 6 8 ,09 9 3 9 31,954,458 299,478,738 2 0 ,500,000 13,934,903

1 Figures as determ ined by FD IC agents a fte r a d ju stm e n t o f books o f the bank im m e diately fo llo w in g its closing.

2 lncludes disbursem ents made to Decem ber 31, 1973, plus additio na l disbursements estim ated to be required in these cases.

3S ubject to adju stm e n t in accordance w ith term s o f Purchase and Assum ption Agreem ent w ith Crocker N ational Bank.

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 229

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Table 123. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN INSURED BANKS REQUIRING DISBURSEMENTS BY THE 

FEDERAL DEPOSIT INSURANCE CORPORATION, 1934-1973 

BANKS GROUPED BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF OR DEPOSIT ASSUMPTION, AMOUNT OF DEPOSITS, AND STATE

C lassification

N um ber o f banks N um ber o f depositors1

Deposits1 

(in thousands o f dollars)

Disbursem ents by F D IC 1 

(in thousands o f dollars)

T ota! P a yoff

cases

Assum pT ots! •

cases

Assumpcases

T eta! P avnff

cases

Assum ptio n

cases

Principal disbursem ents

Advances and 

expenses2

cases

T otal P ayoff

cases3

Assum ptio n

cases4

P a yo ff

cases5

Assum ptio n

cases6

A ll b a n k s ..................................................... 502 297 205 2 ,152 ,1 0 6 595,380 1,556,726 2,055,141 4 0 6,867 1,648 ,2 7 4 827,538 28 4 ,9 0 4 54 2,634 5 ,7 3 4 61,691

Class o f banks

N a tio n a l................................................ 94 34 60 699,639 98,517 601,122 1,170,183 103,530 1,066,653 283,753 57,831 225,922 1,887 8,798

State m em ber F.R .S........................... 27 10 17 276,257 88,892 287,365 197,674 34,388 163,286 108,187 26,506 81,681 299 19,523

N onm em ber F.R .S.............................. 381 253 128 1,076,210 407,971 668,239 687,284 268,949 418,335 435,598 200,567 235,031 3,548 33,370

Year

1934 9 9 15,767 15,767 1,968 1,968 941 941 43

1935 ..................................................... 25 24 ’ 1 44,655 32,331 12,324 13,319 9,091 4,229 8,891 6,026 2,865 108 272

1936 ..................................................... 69 42 27 89,018 43,225 45,793 27,508 11,241 16,267 14,781 8,056 6,725 67 934

1937 ..................................................... 75 50 25 130,387 74,148 56,239 33,349 14,960 18,389 19,161 12,045 7,116 103 905

1938 ..................................................... 74 50 24 203,961 44,288 159,673 59,684 10,296 49,388 30,479 9,092 21,387 93 4,902

1939 ...................................................... 60 32 28 392,718 90,169 302,549 157,772 32,738 125,034 67,770 26,196 41,574 162 17,603

1940 ..................................................... 43 19 24 756,361 20,667 235,694 142,429 5,657 136,773 74,134 4,895 69,239 89 17,237

1941 ...................................................... 15 8 7 73,005 38,594 34,411 29,718 14,730 14,987 23,880 12,278 11,602 50 1,479

1942 ..................................................... 20 6 14 60,688 5,717 54,971 19,186 1,816 17,369 10,825 1,612 9,213 38 1,076

1943 ..................................................... 5 4 1 27,371 16,917 10,454 12,525 6,637 5,888 7,172 5,500 1,672 53 72

1944 ..................................................... 2 1 1 5,487 899 4,588 1,915 456 1,459 1,503 404 1,099 9 37

1945 1 1 12,483 12,483 5,695 5,695 1,768 1,768 96

1946 . . 1 1 1,383 1,383 347 347 265 265 11

1947 ____ 5 5 10,637 10,637 7,040 7,040 1,724 1,724 380

1948 ____ 3 3 18,540 18,540 10,674 10,674 2,990 2,990 200

1949 4 4 5,671 5,671 5,475 5,475 2,552 2,552 166

1950 ......................... 4 4 6,366 6,366 5,513 5,513 3,986 3,986 524

1951 2 2 5,276 5,276 3,408 3,408 1,885 1,885 127

1952 3 3 6,752 6,752 3,170 3,170 1,369 1,369 195

1953 2 2 24,469 24,469 18,262 18,262 5,017 5,017 428

1954 2 2 1,811 1,811 998 998 913 913 145

1955 ..................................................... 5 1 17,790 K,080 9,710 11,953 6,503 5,450 6,784 4^438 2,346 106 665

1956 ..................................................... 2 1 1 15,197 Si,465 9,732 11,330 4,702 6,628 3,458 2,795 663 87 51

1957 1 1 2,338 2,338 1,163 1,163 1,031 1,031 20

1958 ..................................................... 4 3 T 9,587 4,380 5,207 8,240 4,156 4,084 3,026 2,796 230 38 31

1959 3 3 3,073 3,073 2,593 2,593 1,835 1,835 51

1960 1 1 11,171 11,171 6,930 6,930 4,765 4,765 82

230 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
1961 ..................................................... 5

1963 ..................................................... 2

1964 ........................................................ 7

1965 ..................................................... 5

1966 ..................................................... 7

1967 ..................................................... 4

1968 ..................................................... 3

1969 ..................................................... 9

1970 ..................................................... 7

1971 ..................................................... 6

1972 ..................................................... 1

1973 ..................................................... 6

Banks w ith deposits o f

Less than $100,000 .......................... 107

$100,000 to $250,000 ..................... 109

$250,000 to $500,000 ..................... 62

$500,000 to $ 1 ,0 0 0 ,0 0 0 .................. 71

$1 ,000,000 to $ 2 ,000,000 ............. 57

$2 ,000,000 to $ 5 ,000,000 ............. 49

$ 5 ,0 0 0 ,00 0 to $ 1 0 ,0 0 0 ,0 0 0 .......... 27

$ 1 0 ,00 0 ,0 00 to $ 2 5 ,0 0 0 ,0 0 0 .... 11

$ 2 5 ,0 0 0 ,0 0 0 to $ 5 0 ,0 0 0 ,0 0 0 .... 5

$ 5 0 ,00 0 ,0 00 to $ 1 0 0 ,0 0 0 ,0 0 0 . . . 3

$ 5 0 0 ,0 0 0 ,0 0 0 to $ 1 ,0 0 0 ,0 0 0 ,0 0 0 . 1

State

Alabam a .............................................. 4

Arkansas .............................................. 7

C a lifo rn ia .............................................. 5

C olorado .............................................. 6

C o n n e c tic u t......................................... 2

F lo r id a ................................................... 5

G e o rg ia ................................................... 10

I d a h o ..................................................... 2

I l li n o is ................................................... 22

In d ia n a ................................................... 20

Iow a ..................................................... 9

Kansas ................................................... 10

K entucky .............................................. 25

L o u is ia n a .............................................. 4

M a in e ..................................................... 1

M a ry la n d .............................................. 5

Massachusetts...................................... 3

M ich ig a n ................................................ 13

M in n e so ta .............................................. 5

Mississippi ........................................... 3

8,301 8,301

36,430 36,430

19,394 19,934

2 15,817 14,363 1,454

6 95,424 1,012 94,412

4,729 4,729

" 3 12,850 12,850

5 27,372 6,542 20,830

3 31,135 20,105 11,030

1 71,945 31,845 40,100

23,655 23,655

" 3 ‘ 352,552 11,235 341,317

24 38,347 29,695 8,652

23 83,370 65,512 17,858

25 92,179 57,287 34,892

36 160,000 73,908 86,092

36 209,811 70,327 139,484

28 281,638 88,219 193,419

21 266,021 43,662 222,359

5 250,384 126,886 123,498

4 284,809 12,481 272,328

2 150,547 27,403 123,144

1 335,000 335,000

2 9,170 2,059 7,111

1 5,446 4,541 905

2 356,059 17,890 338,169

3 11,487 2,307 9,180

5,379 5,379

3 14,082 1,725 12,357

2 9,410 8,797 613

2,451 2,451

’ l 2 82,295 44,376 37,919

5 30,006 12,549 17,457

4 22,290 5,736 16,554

4 6,715 3,824 2,891

6 39,925 18,964 20,961

8,995 8,995

T 9,710 9,710

3 22,567 6,643 15,924

2 32,701 23,655 9,046

8 165,811 10,173 155,638

2,650 2,650

1,651 1,651

5

2

7

3

1

4

4

4

5

1

3

83

86

37

35

21

21

6

6

1

1

2

6

3

3

2

2

8

2

10

15

5

6

19

4

2

1

5

5

3

8,936

23,444

23,438

43,861

8,936

23,444

23,438

42,889

6,200

19,230

13,746

11,431

6,200

19,230

13,746

10,958

154

341

591

972 473 628

103,523 774 102,749 15,075 735 14,340 25

10,878

22,524

40,133

10,878

22,524

31,122

8,135

5,560

37,211

8,135

5,560

29,583

239

9,011 7,628 ‘ 283

52,403 31,081 21,332 46,484 26,718 19,766 631

132,032

20,482

971,312

74,485

20,482

25,811

57,547 160,888

16,275

184,400

53,796

16,275

16,780

107,092 688

357

945,501 167,620 598

6,418 4,947 1,471 5,000 4,309 691 88

17,759 13,920 3,839 12,906 11,554 1,352 209

22,315 12,921 9,394 15,615 10,549 5,066 164

53,869 26,265 27,604 35,521 20,426 15,095 408

76,342 27,768 48,574 44,234 22,035 22,199 677

159,638 67,600 92,038 92,944 49,651 43,293 1,016

182,925 45,749 137,176 92,177 30,391 61,786 717

186,916 100,619 86,297 109,600 79,235 30,365 1,169

199,594 40,176 159,418 95,193 9,700 85,493 559

217,409

931,955

66,902 150,507

931,955

164,144

160,200

47,052 117,092

160,200

439

286

6,170 3,985 2,185 3,567 2,572 995 94

2,538 1,942 596 1,720 1,576 144 43

979,253 46,220 933,033 185,847 12,946 172,901 940

18,473

1,526

17,665

3,677

1,526

2,668

14,796 8,383

1,242

6,159

2,156

1,242

2,139

6,227 179

8

14,997 4,020 65

1,959

1,894

54,656

1,870

1,894

28,972

89 1,620

1,493

31,906

1,551

1,493

23,924

69 33

29

25,684 7,982 488

13,595 3,933 9,662 6,197 3,096 3,101 39

20,916 8,358 12,558 12,233 6,445 5,788 139

5,052 4,358 694 4,013 3,601 492 57

15,522

9,746

5,450

4,566

5,213

9,746

10,309

5,450

3,738

11,943

4,941

2,346

3,109

4,505

4,941

7,438

2,346

2,374

116

125

828 735 9

23,501 20,482 3,019 17,839 16,275 1,564 357

177,380

818

334

11,334

818

334

166,046 134,285

640

257

9,633

640

257

124,652 196

17

5

123

1,254

1,050

4,157

1,215

6,102

252

154

173

611

2,338

3,706

6,769

8,617

6,836

26,045

6,440

91

48

1,460

1,409

691

791

384

174

72

487

665

371

1,030

7,451

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 231

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Table 123. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN INSURED BANKS REQUIRING DISBURSEMENTS BY THE 

FEDERAL DEPOSIT INSURANCE CORPORATION, 1934-1973-CONTINUED 

BANKS GROUPED BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF OR DEPOSIT ASSUMPTION, AMOUNT OF DEPOSITS, AND STATE

C lassification

N um ber o f banks N um ber o f depositors1

D eposits1 

(in thousands o f dollars)

Disbursem ents by F D IC 1 

(in thousands o f dollars)

T o ta l P ayoff

cases

Assum ptio n

cases

T otal P ayoff

uases

Assum ptio n T otal P ayoff

eases

Assum ptio nPrincipal disbursem ents

Advances and 

expenses2

T otal P ayoff

cases3

Assumptio n

cases4

P ayoff

cases5

Assu m otio n 

cases6

M is s o u ri................................................ 51 37 14 49,057 31,480 17,577 21,716 10,731 10,985 16,336 9,070 7,266 140 902

M o n ta n a ................................................ 5 3 2 1,500 849 651 1,095 215 880 639 186 453 6 21

Nebraska .............................................. 8 8 10,639 10,639 11,644 11,644 8,116 8,116 128

New H a m p s h ire ................................. 1 ’ 1 1,780 1,780 296 296 117 117 8

New J e rs e y ........................................... 40 13 27 532,435 113,669 418,766 210,536 49,034 161,502 95,706 40,049 55,657 474 20,154

New Y o rk ........................................... 26 3 23 269,621 28,440 241,181 145,439 13,286 132,153 67,997 10,836 57,161 32 10,847

N o rth C a ro lin a .................................... 7 2 5 10,408 3,677 6,731 3,266 1,421 1,845 2,387 1,156 1,231 23 179

N o rth D a k o ta ...................................... 29 18 11 14,103 6,760 7,343 3,830 1,552 2,278 2,656 1,397 1,259 24 203

O h io ........................................................ 4 2 2 13,751 7,585 6,166 7,222 2,345 4,877 2,098 1,610 488 7 44

O k la h o m a .............................................. 12 8 4 27,650 20,149 7,501 18,920 11,053 7,867 10,284 7,936 2,348 178 509

O re g o n ................................................... 2 1 1 3,439 1,230 2,209 2,670 1,368 1,302 1,948 986 962 11 81

P ennsylvania......................................... 30 8 22 168,834 43,828 125,006 84,595 14,340 70,255 60,149 10,133 50,016 75 9,906

South C a ro lin a .................................... 2 1 1 1,848 403 1,445 850 136 714 274 136 138 10

S outh D a k o ta ...................................... 23 22 1 12,515 11,412 1,103 2,988 2,862 126 2,411 23 23 26 9

Tennessee.............................................. 12 8 4 12,358 9,993 2,365 1,942 1,620 322 1,278 1,164 114 28 25

Texas ..................................................... 40 31 9 90,707 72,491 18,216 134,534 108,102 26,432 90,509 76,336 14,173 1,255 1,870

Utah ..................................................... 1 1 3,254 3 254 5,992 5,992 3 322 3,322 269

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 4,396 300 505

W ash in g to n............... ........................... 1 1 4,179 4,179 1,538 1,538 935 935 512

West V ir g in ia ...................................... 3 3 8,346 8,346 2,006 2,006 1,458 1,458 11

W is c o n s in .............................................. 31 20 T i ' 26,898 18,739 8,159 9,511 5,966 3,545 7,188 5,096 2,092 54 438

W y o m in g .............................................. 1 1 3,212 3,212 2,033 2,033 202 202 19

1 A djusted to Decem ber 31, 1973. In assum ption cases, num ber o f depositors refers to num ber of deposit accounts.

2 Excludes $571 thousand o f nonrecoverable insurance expenses in cases th a t were resolved w ith o u t paym ent o f claims or a disbursem ent to fa c ilita te assum ption o f deposits by another insured bank and o ther expenses o f 

fie ld liq u id a tio n em ployees n o t chargeable to liq u id a tio n activities,

in c lu d e s estim ated a d d itio n a l disbursem ents in active cases.

4 Excludes excess co lle ctio n s tu rn e d over to banks as a d d itio n a l purchase price a t te rm in a tio n o f liqu id a tio n .

5These disbursem ents are n o t recoverable by th e C o rp o ra tio n ; th e y consist a lm ost w h o lly o f fie ld p a y o ff expenses.

in c lu d e s advances to p ro te c t assets and liq u id a tio n expenses o f $ 5 9 ,5 1 8 thousand, all o f w hich have been fu lly recovered b y the C orp o ra tio n , and $2,172 thousand o f nonrecoverable expenses.

7 No case in 1962 required disbursem ents. D isbursem ents to ta ls fo r each year relate to cases occurring during th a t year, including disbursem ents made in subsequent years.

N O T E : Due to roun d in g differences, com ponents may n o t add to to ta ls.

232 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
T a b le 1 2 4 . R E C O V E R IE S A N D LO S S E S B Y T H E 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 O N P R IN C IP A L 

D IS B U R S E M E N T S F O R P R O T E C T IO N O F D E P O S IT O R S , 1 9 3 4 - 1 9 7 3 

(A m ounts in thousands of dollars)

Liquidation 

status and year 

of deposit payoff

All cases Deposit payoff cases Deposit assumption cases

Number Principal Recoveries Estimated Number Principal Recoveries Estimated Number Principal Recoveries Estimated or deposit of disburse­ to Dec. additional of disburse­ to Dec. additional of disburse­ to Dec. additional assumption banks ments 31,1973 recoveries Losses1 banks ments2 31, 1973 recoveries Losses1 banks ments3 31, 1973 recoveries Losses1

Total ................. 502 827,538 536,233 179,184 112,119 297 284,904 191,018 45,708 48,177 205 542,634 345,215 133,476 63,942

Status

Active................. 54 533,768 270,906 179,184 83,678 29 169,399 92,146 45,708 31,545 25 364,369 178,760 133,476 52,133 Terminated......... 448 293,768 265,327 28,441 268 115,504 98,872 16,632 180 178,264 166*455 11,809

Year4

1934................... 9 941 734 207 9 941 734 207

1935................... 25 8,891 6,206 3 2,681 24 6,026 4,274 1,751 V 2,865 1 932 3 930 1936................... 69 14,781 12,325 2,455 42 8,056 6,595 1,460 27 6 725 5>30 995 1937................... 75 19,161 15610 3 549 50 12 045 9 520 2524

1938................... 74 30,479 28 055 2 425 50 9 092 7 908 1*184 24 OI'OOT 6,090 1,025

1939................... 60 67,770 60,618 7,153 32 26 196 20,399 5,798 28

21,387

41 574

20,147 

40 21°

1,241

1940................... 43 74,134 70,338 3,796 19 4,895 4,313 582 24 69 239 66,' 025

1,355 

3,214 1941................... 15 23,880 23 290 591 8 12 065 213

1942................... 20 10,825 10,136 688 6 1,612 1 320 292 14

1

11,602 

9 213

11,225

ft R1fi

378

396 1943................... 5 7,172 7,048 123 4 5,500 5,376 123 1,672

0,0 10 

1 672

1944................... 2 1,503 1,462 40 1 404 363 40 1 1 099 1 099 1945................... 1 1,768 1,768 1 1768 1 768 1946................... 1 265 265 1 265 265 1947................... 5 1,724 1,657 9 59 5 1 724 ........ ..

1948................... 3 2,990 2,349 641 3 2,990 2,349

9 59

641

1949................... 4 2,552 2,183 369 4 2 552 369 1950................... 4 3,986 2,601 1,385 4 3 986 o'cni

1951................... 2 1,885 1,885 2 1885

Z,bl) 1

1 885

1,385

1952................... 3 1,369 577 792 3 1369 577 792 1953................... 2 5,017 5,017 2 5017 5 017

1954................... 2 913 654 258 2 913 654 258 1955................... 5 6,784 6 554 230 4,438 4 208 230

1956................... 2 3,458 3,244 214 1 2J95 2*581 214 1 2*663

2,346

663 1957................... 1 1,031 1,031 1 1,031 1,031

1958................... 4 3,026 2,998 28 3 2,796 2,768 28 1 230 230

1959................... 3 1,835 1,738 97 3 1,835 1,738 97

1960................... 1 4,765 4,765 1 4,765 4,765

1961................... 5 6,200 4,698 1 1,501 5 6,200 4,698 1 1,501

1963................... 2 19,230 18,246 634 350 2 19,230 18,246 634 350

1964................... 7 13,743 11,786 323 1,636 7 13,743 11,786 323 1,636

1965 ................... 5 11,432 6,121 107 5,205 3 10,959 5,795 106 5,060 2 473 326 1 145 1966................... 7 15,075 13,905 182 989 1 735 611 104 20 6 14,340 13,294 78 969 1967 ................... 4 8,135 6,627 232 1,277 4 8,135 6,627 232 1,277

1968................... 3 5,560 5,506 15 40 3 5 560 5 506 1969................... 9 37,211 36,085 862 265 " 4 7,628 6,930 433 265 5 29,'583 29J55 429

1970 ................... 7 46,486 35,516 7,893 3,075 4 26,720 17,170 7,125 2,425 3 19,766 18,346 768 650 1971................... 6 160,887 108,988 39,396 12,500 5 53,795 21,041 20,252 12,500 1 107,092 87,947 19,144 1972 ................... 1 16,274 5,073 6,201 5,000 1 16,274 5,073 6,201 5,000

1973 ................... 6 184,400 8,574 123,326 52,500 3 16,780 3,083 10,297 3,400 " 3 167,620 5,491 13,029 49,100

’ Includes estimated losses in active cases. Not adjusted for interest or allowable return, which was collected in some cases in which the disbursement was fully recovered. 

2lncludes estimated additional disbursements in active cases.

3Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.

4No case in 1962 required disbursements.

Note: Due to rounding differences, components may not add to totals.

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 233

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237

INDEX

Absorptions:

Of insured banks requiring disbursements by FDIC. See 

Banks in financial difficulties.

Of operating banks, 1973 .................................................................... 15-16

Of operating banks approved by FDIC, 1973 ......................15-16, 35-153

Regulation o f ....................................................................................... 12-14

Admission of banks to insurance. See also Applications from banks:

Applications for, 1973 ........................................................................ 10-11

Number of banks admitted, by class of bank, 1973 ............................ 168

Applications from b a n k s ............................................................... 10-14, 158-160

Areas outside continental United States, banks and branches located in:

Number, December 31, 1973 ................................................ 171, 179-180

Assessments for deposit insurance............................................................... 28-29

Assets and liabilities of F D IC ........................................................................ 26-27

Assets, liabilities, and capital of banks. See also Deposits:

Commercial banks:

Changes during 1973 ....................................................................xi-xii

Grouped by insurance status,

June 30, 1973, and December 31, 1973 .......................... 189-196

Sources of d a ta ...............................................................................211

Insured commercial banks:

Amounts, December call dates, 1963, 1969-1973 ............. 199-201

Amounts, June 30, 1973, and December 31, 1973,

by class of b a n k ..................................................................189-196

Major categories, average, 1965-1973 ..........................................213

Percentage distribution, by size of bank, 1973 ................. 206-208

Percentages of items, by size of bank, 1973 ...............................204

Mutual savings banks:

Changes during 1973 ........................................................................ xii

Grouped by insurance status, June 30, 1973, and December

31, 1973............................................................................... 197-198

Sources of d a ta ...............................................................................211

Insured mutual savings banks:

Amount, December call dates, 1969-1973 .......................... 202-203

Major categories, average, 1969-1973 ..........................................222

Percentages of items, by size of bank, 1973 ...............................205

Assets purchased by FDIC from banks in financial difficulties......................3-7

Assumption of deposits of insured banks with financial aid of FDIC.

See Banks in financial difficulties:

Attorney General of the United States............................................................... 13

Attorney General of the United States, summary

reports on absorptions ............................................................................ 40-150

Audit of F D IC .......................................................................................................32

Bad-debt reserves. See Valuation reserves.

Bank Holding Company Act of 1956 ............................................................... 8-9

Bank Merger Act of 1960..................................................................................... 12

Bank ownership, changes, regulation o f .......................................................18-19

Bank performance, 1973 .................................................................................xi-xii

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238 FEDERAL DEPOSIT INSURANCE CORPORATION

Bank Protection Act of 1968 ............................................................... 10, 20, 164

Bank Secrecy A c t.................................................................................................. 10

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 ............................................................................ 229

Deposit size of ......................................................................................... 231

Deposits protected, 1934-1973.................................................. 5, 230-232

Disbursements by FDIC, 1934-1973 ......................................... 6, 230-233

Failures in 1973 ....................................................................................... 4-7

Loans made and assets purchased by F D IC ................................................ 6

Location by State, 1934-1973 ....................................................... 231-232

Losses incurred by depositors......................................................................5

Losses incurred by FDIC ............................................................. .. . .6, 233

Number of, 1934-1973 ............................................................................ 227

Number of deposit accounts, 1934-1973 ..................................... 230-232

Recoveries by FDIC on assets acquired, 1934-1973 ........................6, 233

Noninsured banks:

Number and deposits of commercial banks closed,

1934-1973 ..................................................................................... 226-227

Banks, number of. See Number of banks and branches.

Board of Directors of FDIC. See Federal Deposit Insurance Corporation.

Board of Governors of the Federal Reserve System. See Federal Reserve 

authorities.

Branches:

Establishment approved by FDIC, 1973 ............................................ 11-12

Examination of, 1972 and 1973 ................................................................. 9

Number of. See Number of banks and branches.

Call reports. See Assets, liabilities, and capital of banks;

Reports from banks.

Capital of banks. See Assets, liabilities, and capital of banks; Banks in 

financial difficulties; Income of insured commercial banks;

Examination of insured banks.

Cease-and-desist proceedings ..................................................................14-15, 19

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 ....................................................................................... 15,168

Income of insured commercial banks, 1973 ................................. 215-216

Insured banks requiring disbursements by FDIC, 1934-1973 ............. 230

Number of banks and banking offices, 1973........................ 168, 172-180

Number of banks and deposits............................................................... 181

Classification of banks....................................................................................... 167

Closed banks. See Banks in financial difficulties.

Commercial banks, See Assets, liabilities, and capital of banks; Deposits;

Income of insured commercial banks; Number of banks and branches.

Comptroller of the C urrency.........................................................5, 9, 20, 22, 25

Consolidations. See Absorptions.

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INDEX 239

Consumer Credit Protection A c t ........................................................................ 19

Credit, bank. See Assets, liabilities, and capital of banks.

Crime reports received by F D IC .......................................................................... 20

Demand deposits. See Assets, liabilities, and capital of banks; Deposits.

Department of Housing and Urban Development............................................157

Deposit insurance, applications for ............................................................. 10-11

Deposit insurance coverage ........................................................................ xiii, 32

Deposits insured by FDIC:

Estimated insured deposits, December 31, 1934-1973 .................... 31-32

Increase in maximum per depositor ................................................ xiii, 32

Survey of, on June 30, 1973...................................................................... 21

Deposits of: See also Assets, liabilities, and capital of banks:

Banks closed because of financial difficulties, 1934-1973 ....................227

Commercial banks:

By insurance status and type of bank, and type of account,

June 30, 1973 .............................................................................191

By insurance status and type of bank, and type of account,

December 31, 1973 ............. ...................................................... 195

By State and deposit size of b a n k ....................................... 182-186

Insured commercial banks:

Average demand and time deposits, 1965-1973.......................... 213

By class of bank, December 31, 1973 ..........................................181

By deposit size of bank, December 31, 1973...............................181

December call dates, 1963, 1969-1973 ....................................... 200

Mutual savings banks, by insurance status, June 30, 1973, and

December 31, 1973 ....................................................................198

Insured mutual savings banks:

Average demand and time deposits, 1969-1973.......................... 222

December call dates, 1969-1973 .................................................. 203

Deposits, negotiable orders of w ith d ra w al..............................................157, 164

Deposits, number of insured commercial banks with given ratios of

demand to total deposits.................................................................................207

Directors of FDIC. See Federal Deposit Insurance Corporation.

Disbursements. See Banks in financial difficulties.

Disclosure of bank information, implementation of FDIC policy ..................21

Dividends:

To depositors in insured mutual savings banks. See Income of insured 

mutual savings banks.

To stockholders of insured commercial banks. See Income of insured 

commercial banks.

Earnings of banks. See Income of insured commercial banks: Income of

insured mutual savings banks.

Employees:

FDIC .................................................................................................... 25-26

Insured commercial banks,

number and compensation, 1965-1973 ..................................... 212-213

Insured mutual savings banks, number and

compensation, 1969-1973 ........................................................... 221-222

Examination of insured banks.

By FDIC, 1973 ....................................................................................... 9-10

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240 FEDERAL DEPOSIT INSURANCE CORPORATION

Regions and regional directors ..................................................................vi

Examiners, FDIC policy on bank loans to ,..............................................162-163

Expenses of banks. See Income of insured commercial banks;

Income of insured mutual savings banks.

Expenses of FDIC ..........................................................................................28-31

Failures. See Banks in financial difficulties.

Fair Credit Reporting A c t ...................................................................................10

Federal Deposit Insurance Corporation:

Actions on applications .......................................................10-14, 158-160

Assessments on insured banks............................................................. 28-29

Audit ........................................................................................................... 32

Banks examined by, and submitting reports t o ..................................... 7-8

Borrowing power ....................................................................................... 27

Capital stock................................................................................................ 30

Coverage of deposit insurance..................................................................xiii

Deposit insurance disbursements ............................................3-5, 230-233

Deposit insurance fund (surplus) ............................................27-28, 30-32

Directors (members of the Board) .......................................................v, 25

Divisions.......................................................................................................iv

Employees ............................................................................................25-26

Examination of banks............................................................................ 9-10

Fellowships awarded................................................................................... 25

Financial statements, 1973 ................................................................. 26-30

Income and expenses, 1933-1973 ............................................................. 30

Insured banks requiring disbursements by. See Banks in 

financial difficulties.

Liquidation activities ...............................................................................3-4

Loans to, and purchase of assets from, insured banks......................3-4, 6

Losses incurred, 1934-1973 ............................................................... 6, 233

Methods of protecting depositors............................................................... 3

Officials .........................................................................................................v

Organization................................................................................................ iv

Payments to insured depositors ..................................... 3-7, 228, 230-233

Publications ..........................................................................................21-22

Receiver, appointment a s ........................................................................ 3,5

Recoveries ............................................................................................6, 233

Regions.........................................................................................................vi

Regulation of bank securities....................................................................18

Regulation of interest rates.................................................... 157, 160-164

Reports from banks ...................................................................................21

Reports of changes in bank ownership.................................................... 18

Research................................................................................................ 22-25

Reserve for losses on assets acquired.................................................. 27-28

Rules and regulations...................................................................... 158-164

Sources and application of funds ............................................................. 29

Supervisory activities ............................................................................ 7-25

Surveys during 1973 ............................................................................ 21-22

Training programs....................................................................................... 20

Working Papers completed in 1973 and 1972 ................................... 22-25

Federal Home Loan Bank Board .......................................................20, 157, 161

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INDEX 241

Federal legislation, 1973 .......................................................................... 157-158

Federal Reserve authorities .................................................... 9, 20-22, 157, 161

Federal Reserve member banks. See Class of bank, banking data presented by.

Flood Disaster Protection A c t .......................................................................... 157

General Accounting O ffice...................................................................................32

Income of F D IC .............................................................................................. 28-32

Income of insured commercial banks:

Amounts of principal components:

Annually, 1965-1973 .................................................................. 212-213

By class of bank, 1973 ............................................................... 215-216

By size of bank, 1973 ................................................................. 217-218

Classification of income data ......................................................... 209-211

Developments in 1973 ...............................................................................xii

Ratios of income items:

Annually, 1965-1973 .......................................................................... 214

By size of bank, 1973 ................................................................. 219-220

Sources of d a ta ......................................................................................... 211

Income of insured mutual savings banks:

Amounts of principal components, 1969-1973............................ 221-222

Developments in 1973 ...............................................................................xii

Ratios of income and expense items, 1969-1973 ........................ 223-224

Sources of d a ta ..........................................................................................211

Insolvent banks. See Banks in financial difficulties.

Insurance status, banks classified by:

Assets and liabilities of, June 30,1973, and December 31, 1973 . .189-198

Changes in number of, 1973 ....................................................................168

Class of bank and size...............................................................................181

Income of insured commercial ban ks............................................215-216

Percentage of banks insured, by State, December 31, 1973 .... 172-180

Insured banks, See Assets, liabilities, and capital of banks; Banks in 

financial difficulties; Deposits; Income of insured commercial banks; 

Income of insured mutual savings banks; Number of banks and branches. 

Insured commercial banks not members of the Federal Reserve System.

See Class of bank, banking data presented by.

Insured deposits. See Banks in financial difficulties; Deposit insurance 

coverage.

Insured State banks members of the Federal Reserve System. See Class

of bank, banking data presented by.

Interagency Coordinating Committee ............................................................... 20

Interest rates paid on deposits, advertising o f ......................................... 163-164

Interest rates, surveys of:

Mortgage lending activity and rates........................................................... 22

Rates paid by b a n ks...................................................................................21

Investments. See Assets, liabilities, and capital of banks; Assets and 

liabilities of FDIC; Banks in financial difficulties.

Legal fees, and other expenses incident to certain applications ....................158

Legislation relating to deposit insurance and banking:

Federal, enacted in 1973 ............................................................... 157-158

Loans. See Assets, liabilities, and capital of banks; Banks in financial 

difficulties.

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242 FEDERAL DEPOSIT INSURANCE CORPORATION

Losses:

Of banks. See Income of insured commercial banks; Income of 

insured mutual savings banks.

Of F D IC ................................................................................................ 6, 233

On loans, reserves for. See Valuation reserves.

Provision for, in insured banks, 1965-1973 ......... 211-212, 214, 221, 223

Mergers. See Absorptions.

Methods of protecting depositors.......................................................................... 3

Methods of tabulating banking data. See Banking data, classification of.

Minority-owned banks, study of early experience ............................................22

Mortgage lending by insured commercial banks, survey of ............................... 22

Mutual savings banks. See Assets, liabilities, and capital of banks;

Deposits; Income of insured banks; Number of banks and branches.

National banks. See Class of bank, banking data presented by.

New banks, 1973 .....................................................................................xi, 8, 168

Noninsured banks. See also Absorptions; Admission of banks to insurance; Assets, liabilities, and capital of banks; Banks in financial 

difficulties; Classification of banks; Class of bank, banking data presented 

by; Deposits; Number of banks and branches; Reports from banks.

Number of banks and branches:

Banks:

By insurance status and type of bank, June 30, 1973, and

December 31, 1973 ........................................................... 192, 196, 198

By insurance status, type of bank, number of branches, and

State, December 31, 1973 ......................................................... 172-180

By State and deposit size of b an k.............................................. 182-186

By supervisory status and deposit size ..............................................181

Changes during 1973 ............................................................. xi, 168-169

Branches:

By insurance status and type of bank, December 31, 1973 ............. 169

By insurance status, type of bank, and State, December 31,

1973 ............................................................................................ 172-180

Changes during 1973 ....................................................................xi, 169

Insured commercial banks:

December call dates, 1965-1973 ....................................................... 213

Distributed by capital ratios and distribution of assets and

deposits, December 31, 1973 .................................................. 206-208

Insured mutual savings banks:

December call dates, 1969-1973 ....................................................... 222

Noninsured banks by State, December 31, 1973 ........................ 172-180

Unit banks, by insurance status and State, December 31,1973 . . . 172-180 

Obligations of banks. See Assets, liabilities, and capital of banks.

Officers of insured banks. See Employees.

Officials of F D IC .................................................................................................... v

Operating banks. See Number of banks and branches.

Payments to depositors in closed insured banks. See Banks in financial 

difficulties.

Personnel. See Employees.

Possessions, banks and branches located in. See Areas outside 

continental United States, banks and branches located in.

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INDEX 243

Protection of depositors. See Banks in financial difficulties; Deposit 

insurance coverage.

Receivership, insured banks placed in. See Banks in financial difficulties. 

Recoveries:

By banks on assets charged off. See Income of insured commercial 

banks; Income of insured mutual savings banks.

By FDIC on disbursements. See Banks in financial difficulties.

Regions, F D IC .......................................................................................................vi

Removal proceedings............................................................................................17

Reports from banks....................................................................................... 21-22

Reserves:

Of FDIC, for losses on assets acquired ..............................................26-29

Of insured banks for losses on assets. See Valuation reserves. 

With Federal Reserve Banks. See Assets, liabilities, and capital of 

banks.

Rules and regulations of the FDIC. See Federal Deposit Insurance

Corporation.

Salaries and wages:

FDIC ...........................................................................................................28

Insured banks. See Income of insured commercial banks; Income of 

insured mutual savings banks.

Savings and loan associations............................................................................ 157

Savings and time deposits. See also Deposits ................................................xi-xii

Secretary of the Treasury of the United States ............................. 27, 157, 161

Securities. See Assets, liabilities, and capital of banks; Assets and 

liabilities of FDIC; Banks in financial difficulties.

Securities, bank, regulation o f ............................................................................ 18

Securities Exchange Act of 1934 ........................................................................18

Securities of States and local

governments held by banks, study of .............................................................22

Size of bank, data for banks classified by amount of deposits:

Assets and liabilities, percentages of, insured banks, 1973 ......... 204-205

Banks requiring disbursements by FDIC, 1934-1973 .......................... 231

Income of insured commercial banks, 1973 ................................. 217-218

Income ratios of insured commercial banks, 1973 ...................... 219-220

Number and deposits of all banks...........................................................181

Number of employees of insured commercial banks, 1973 ..................218

Number of insured commercial banks, grouped by ratios of selected

items to assets and deposits, December 31, 1973...................... 206-208

State banking authorities....................................................................7, 10, 19-20

State, banking data classified by:

Changes in commercial banks and branches, 1973 ...................... 170-171

Disbursements, deposits, and depositors in insured banks requiring

disbursements by FDIC, 1934-1973 ......................................... 231-232

Number and deposits of commercial

banks, by deposit size of b ank.................................................... 182-186

Number of banks and branches, by class of bank and type of office,

December 31, 1973 ...................................................................... 172-180

Percentage of banks insured, December 31, 1973 ........................ 172-180

State banks. See Class of bank, banking data presented by.

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244 FEDERAL DEPOSIT INSURANCE CORPORATION

Stockholders of banks, net profits available for. See Income of insured 

commercial banks.

Supervision of banks by F D IC ........................................................................7-25

Suspension proceedings ................................................................................. 17-18

Suspensions. See Banks in financial difficulties.

Taxes paid by insured banks. See Income of insured commercial banks;

Income of insured mutual savings banks.

Terminations of insurance for unsafe and unsound practices....................14-17

Trust assets of insured commercial banks, re p o rt....................................... 21-22

Truth-in-Lending A c t ..................................................................................... 10, 19

Unit banks, by insurance status and State, December 31, 1973 ........... 172-180

Valuation reserves. See also Assets, liabilities, and capital of banks:

Amounts held, June 30, 1973, and December 31, 1973 ............. 191, 196

Amounts held, December call dates, 1963, 1969-1973 ........................201

Violations of law or regulations, banks charged w it h .................................14-18

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