ANNUAL REPORT OF THE

FEDERAL DEPOSIT INSURANCE CORPORATION

1974

V.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

during 1974, was published and submitted to the Congress on 

February 28, 1975.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
LETTER OF TRANSMITTAL

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

W ashington, D.C., August 15, 1975

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 fo r the calendar year 1974.

Respectfully yours,

FR AN K W ILLE 

Chairman

THE P R E S ID E N T OF TH E S EN A TE

THE S PE A K ER OF TH E HOUSE OF R E P R E S E N T A T IV E S

hi

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION

BOARD OF DIRECTORS

Chairman............................................................................ Frank Wille

D irecto 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.

Assistan t to the Director .................................................... (Vacancy)

(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 ...................................George W. Hill

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

Controller...........................................................Edward F. Phelps, Jr.

Director, Office o f Management

Systems and Financial Audits............................ Robert E. Barnett

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

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

Special Assistant to the Director......................C. F. Muckenfuss, 111

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

December 31, 1974

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

’A

ig M H i................... .......

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

233 S. Wacker Drive, Suite 6116 

Chicago, Illinois 60606 

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

Minneapolis

Roger B. West

730 Second Avenue South, Suite 266 

Minneapolis, Minnesota 55402 

New York

Claude C. Phillippe 

345 Park Avenue, 21st Floor 

New York, New Y ork 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

Madison St. Louis

Bernard J. McKeon Robert V. Shumway 

1 South Pinckney Street, Room 813 720 Olive Street, Suite 2909

Madison, Wisconsin 53703 St. Louis, Missouri 63101

Memphis San Francisco

Roy E. Jackson John J. Early

165 Madison Avenue, Suite 1010 44 Montgomery Street, Suite 3600

Memphis, Tennessee 38103 San Francisco, California 94104

Decem ber 31, 1974

FEDERAL DEPOSIT INSURANCE CORPORATION 

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

VI

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
CONTENTS

Banking offices— bank performance— 1974 ............................... xi

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

PART ONE

OPERATIONS OF THE CORPORATION

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

Supervisory activities.................................................................... 8

Administration of the Corporation ............................................ 22

Finances of the Corporation ....................................................... 23

PART TWO

MERGER DECISIONS OF THE CORPORATION

Bank absorptions approved by the Corporation ...................... 33

Bank absorption denied by the Corporation ............................ 168

PART THREE

LEGISLATION AND REGULATIONS

Federal legislation (summary)— 1974 ......................................... 175

Rules and regulations of the Corporation (summary)— 1974 . . 178

PART FOUR

STATISTICS OF BANKS AND DEPOSIT INSURANCE

Number of banks and branches .................................................. 184

Assets and liabilities of banks .................................................... 205

Income of insured banks ............................................................. 227

Banks closed because of financial difficulties; 

deposit insurance disbursements ............................................243

Maximum interest rates on time and savings deposits ............. 251

VII

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
TABLES

DEPOSIT INSURANCE DISBURSEMENTS:

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

Federal Deposit Insurance Corporation, 1934-1974 ............................ 6

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

transactions, January 1, 1934-December 31, 1974 .............................. 7

3. Insured banks closed during 1974 requiring disbursements by the Federal Deposit Insurance C o rp o ra tio n .......................................................... 7

SUPERVISORY ACTIVITIES:

4. Bank examination activities of the Federal Deposit Insurance Corporation in 1973 and 1 9 7 4 .................................................................................. 11

5. Mergers, consolidations, acquisitions of assets and assumptions of liabilities approved under section 18(c) of the Federal Deposit Insurance 

A ct during 1974 ........................................................................................... 14

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

during 1974— banks grouped by size and in States according to status of branch banking .................................................................................. 15

7. Cease-and-desist orders and actions to correct specific unsafe or unsound practices or violations of law or regulations, 1974 ................... 16

8. Actions to terminate insured status of banks charged w ith unsafe

or unsound banking practices or violations of law or regulations, 1936-1974 ......................................................................................... 17

ADM INISTRATION OF THE CORPORATION:

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

Corporation, December 31, 1973 and 1974 .......................................... 23

FINANCES OF THE CORPORATION:

10. Statement of financial condition, Federal Deposit Insurance Corporation, December 31, 1974 ............................................................................. 24

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

Insurance Corporation, year ended December 31, 1974 ..................... 25

12. Determination and distribution of net assessment income, Federal

Deposit Insurance Corporation, year ended December 31, 1974 .... 27

13. Sources and application of funds, Federal Deposit Insurance Corporation, year ended December 31, 1974 ........................................................ 27

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

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

1974 ................................................................................................................ 28

15. Insured deposits and the deposit insurance fund, 1934-1974 ................... 30

VIII

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Explanatory note .......................................................................................................184

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

United States (States and other areas) during 1974 ............................186

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

States (States and other areas) during 1974, by S ta te ....................... 188

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

areas), December 31, 1974

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

State or area and type o f office ........................................................ 190

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

(States and other areas), December 31, 1974

Banks grouped by class and deposit s iz e .......................................... 199

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

(States and other areas), December 31, 1974

Banks grouped by deposit size and State ........................................200

ASSETS AND LIA B ILIT IE S OF BANKS:

Explanatory note .......................................................................................................205

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

(States and other areas), June 30, 1974

Banks grouped by insurance status and class o f b a n k ...................207

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

(States and other areas), December 31, 1974

Banks grouped by insurance status and class o f b a n k ...................211

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

(States and other areas), June 30, 1974, and December 31, 1974

Banks grouped by insurance status..................... ..............................215

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

(States and other areas), December call dates, 1964, 1970-1974 .. .217

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

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

1964, 1970-1974 ...................................................................................... 220

111. Percentages of assets and liabilities of insured commercial banks operating throughout 1974 in the United States (States and other

areas), December 31, 1974

Banks grouped by amount o f deposits ............................................ 222

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

operating throughout 1974 in the United States (States and other

areas), December 31, 1974

Banks grouped by amount o f deposits ............................................ 223

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

and other areas), December 31, 1974

Banks grouped according to amount o f deposits and by ratios o f

selected items to assets or deposits................................................... 224

IX

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
INCOME OF INSURED BANKS:

Explanatory note .......................................................................................................227

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

other areas), 1966-1974 ...........................................................................230

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

(States and other areas), 1966-1974 ......................................................232

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

other areas), 1974

Banks grouped by class o f bank ........................................................ 233

117. Income of insured commercial banks operating throughout 1974 in

the United States (States and other areas)

Banks grouped by amount o f deposits ............................................ 235

118. Ratios of income of insured commercial banks operating throughout

1974 in the United States (States and other areas)

Banks grouped according to amount o f deposits............................237

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

and other areas), 1970-1974 ....................................................................239

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

(States and other areas), 1970-1974 ......................................................241

BANKS CLOSED BECAUSE OF F IN A N C IA L D IFFIC U LTIE S ;

DEPOSIT INSURANCE DISBURSEMENTS:

Explanatory note .......................................................................................................243

121. Number and deposits of banks closed because of financial d ifficulties, 1934-1974 .................................................................................... 245

122. Insured banks requiring disbursements by the Federal Deposit Insurance Corporation during 1974 ................................................................. 246

123. Depositors, deposits, and disbursements in failed banks requiring disb u rse m e nts by the Federal Deposit Insurance Corporation, 

1934-1974

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

assump tion, am oun t o f deposi ts, and State ..................................... 247

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

principal disbursements fo r protection of depositors, 1934-1974 . . .250

M AXIM U M INTEREST RATES ON TIME AND SAVINGS DEPOSITS:

125. Maximum interest rates payable on time and savings deposits in federally insured nonmember mutual savings b a n k s .................................252

126. Maximum interest rates payable on time and savings deposits fo r commercial banks ............................................................................................. 253

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANKING OFFICES— BANK PERFORMANCE-1974

The number of commercial banks in operation in the United 

States rose by 287 in 1974, marking a fifth consecutive annual 

increase. These increases reversed the declining trend in numbers of 

banks which, except for 1963 to 1965, had continued for many 

years until 1970. During 1974, a total of 394 commercial banks 

began operations— 54 more than in 1973— while the 117 banks 

closed due to mergers were 19 more than in the year before. Mutual 

savings banks, operating in 17 States and Puerto Rico, declined by 

two, as one bank began operations and three ceased operations 

due to mergers during the year.

As in other recent years, the commercial banks beginning operations in 1974 were heavily concentrated in unit banking States, 

especially in Florida, Texas, and Illinois, which accounted for more 

than one-third of all banks opened during 1974. In States that 

permit branching, and that in most cases also permit multibank 

holding companies, 185 banks began operations in 1974, and after 

mergers and other changes, the net increase in commercial banks in 

these States was 75.

The number of FDIC-insured commercial banks rose by 254 during 1974 to a total of 14,230. The number of national banks increased during the year by 49, State bank members of the Federal 

Reserve System declined by 4, and insured State nonmember banks 

increased by 209. A net total of 31 member banks— 5 national 

banks and 26 State member banks— shifted to insured nonmember 

status during the year.

A net addition of one noninsured trust company and 32 other 

noninsured banks occurred during 1974. Of the 25 noninsured 

banks of deposit that began operations, 21 were branches of foreign 

banks (13 in Chicago, 5 in New York City, and 3 in Seattle). Four 

noninsured banks ceased operations and six noninsured banks became insured.

The number of branches of commercial banks, totaling over 

28,700 at the end of 1974, rose by 7.4 percent during the year, 

matching the percentage growth in 1973. The growth of branching 

in recent years is indicated by the increase in the number of commercial bank branches by more than 8,200 during the past 5 years, 

and the corresponding rise from about 3.1 to 4.2 in the average 

number of branches per bank in States permitting branching.

In 1974, commercial banks in the United States conducted business in a climate of record inflation, tight monetary policy, high 

interest rates, and toward the end of the year, slackening economic 

activity. During the year, total assets of insured commercial banks 

increased 9.6 percent to a total of $912.5 billion, following a 12.9

XI

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION

percent increase in 1973. Bank loans increased by about 10.4 percent from the year-end 1973 level, with most of the increase occurring in the first three quarters of 1974. Residential real estate loans 

rose by 9.9 percent for the year, but virtually no growth occurred 

in the last quarter.

Total deposits grew 9.5 percent in 1974, compared to 10.5 percent in the year before. A large share of the rise in 1974— almost 60 

percent— was in large certificates of deposit. Demand deposits increased in the last half of the year, reversing the downward trend of 

the previous 12-month period. Savings deposits showed a rise of 6.6 

percent in 1974, more than double the percentage growth in 1973. 

Banks continued to increase their borrowings of funds, though the 

increase was substantially less than in 1973.

Income from loans of insured commercial banks grew almost $13 

billion, or 34.3 percent, in 1974, reflecting a larger volume than in

1973 and a substantial increase in the average return on loans. 

However, interest on borrowed money and on deposits were up 

54.3 percent and 40.6 percent, respectively, from 1973. Provision 

for loan losses jumped 80.8 percent in 1974. These increases were 

largely responsible for a one-third rise in total operating expenses 

and a resulting 2.85 percentage-point decline in the margin of operating earnings in 1974. Despite the decline in margins, net income 

after securities transactions and taxes rose by 7.9 percent in 1974.

The rise of money market rates well above the rates paid by 

mutual savings banks on deposits caused disintermediation of funds 

from these institutions into higher yielding securities during 1974. 

There was some improvement in the fourth quarter of the year 

when short-term interest rates fell somewhat, reversing deposit 

flows back into mutual savings banks. Despite the nearly $5 billion 

addition to deposits from interest and dividend payments, total 

deposits of insured mutual savings banks rose only $2 billion, or 2.3 

percent, during the year. In response to the reduction in deposit 

flows, mutual savings banks were able to increase loans by less than 

2 percent during 1974, compared to the prior year's 9 percent 

growth in loans. Large declines in loan activity occured in 1- to 4- 

family FHA-insured and VA-guaranteed mortgages, as well as in 

contruction loans.

As interest rates rose in 1974, so did earnings from loans and 

investments. For FDIC-insured mutual savings banks, return on real 

estate loans increased about 19 basis points over the 1973 level. 

However, average interest and dividend payments on deposits increased even more, about 34 basis points, in part because of a shift 

of passbook deposits into the higher yielding time deposits and also, 

the full impact of the 1973 increases in rates permitted on certain

X II

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

deposits was felt in 1974. Overall, net operating income increased 

$292 million, about 5.6 percent, in 1974. However, large increases 

in interest paid on deposits and substantial losses on securities sold 

caused a $161 million decrease in the net earnings of FDIC-insured 

mutual savings banks from 1973— a drop of more than one-third.

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. Of the 14,481 commercial banks in the United States on 

December 31, 1974, 14,230, or about 98.3 percent, were insured 

by the Corporation. The 260 noninsured commercial banks in operation at the close of 1974 included 42 banks of deposit, 72 nondeposit trust companies, 16 private banks, 59 branches of foreign 

banks, and 71 industrial banks. The noninsured banks of deposit 

were located in 24 States or other areas— no State having more than 

four such banks; the nondeposit trust companies were operating in 

22 States; and the private banks were divided among 6 States. In 

contrast, all except five industrial banks were located in Colorado, 

and more than two-thirds of the foreign bank branches were operating in New York and Illinois.

A total of 320 mutual savings banks were insured by the Corporation at the close of 1974. Of the 160 noninsured mutual savings banks, 159 were located in Massachusetts and insured under 

that State's deposit insurance program; one noninsured bank was 

located in the State of Maine.

Effective November 27, 1974, by amendment to the Federal 

Deposit Insurance Act, the general limit of insurance per depositor 

was increased from $20,000 in each insured bank to $40,000. A t 

the same time, a higher maximum level of insurance was established 

for certain deposits of public units. For time and savings deposits of 

Federal units, and such deposits of State and local governments 

deposited in the depositor's own State, the lim it of deposit insurance was increased to $100,000 per depositor.

The amendments that increased the limit of Federal deposit 

insurance did not change the rules governing the insurance of deposits. Federal deposit insurance protects depositors in insured 

banks that are closed. Different types of deposits— for example, a 

demand account, savings account, or other time deposit accountheld by any depositor in the same right and capacity are insured up 

to $40,000 in the aggregate. On the other hand, different accounts 

in which the interest of any single depositor in each of such accounts represents a different right and capacity— for example, the

XIII

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION

account of a single holder, a valid joint account, or the account of an 

irrevocable trust— are separately insured up to the general lim it of 

insurance.

It is estimated that total insured deposits amounted to about 

$520.3 billion, or 62.5 percent of all deposits in insured banks, on 

December 31, 1974. This estimate is based on relationships derived 

from the results of the Corporation's survey of deposits made on 

June 30, 1972 and subsequent surveys. Other estimated percentages 

of insured deposits on that date include 62.8 percent for demand 

deposits of individuals and businesses, 96.3 percent for savings deposits, and 30.7 percent for time accounts of government units.

Although the general lim it of deposit insurance available for each 

depositor was doubled in 1974, the resulting increase in the percentage of all insured deposits to total deposits in insured banks is 

estimated to have been less than 2 percentage points. The moderate 

increase in insured deposits resulted from the fact that only a relatively small number of accounts were affected by the higher insurance ceiling. A t the time of the 1972 deposit survey, for example, 

relative to the total accounts in specific types of deposits in commercial banks, 98.7 percent of demand deposit accounts of individuals, partnerships, and corporations, 99.4 percent of savings deposit accounts, and 71.6 percent of accounts of State and local 

governments were accounts of $20,000 or less.

XIV

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
r N

OPERATIONS OF THE CORPORATION

PART ONE

V J

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
DEPOSIT INSURANCE DISBURSEMENTS

Methods of protecting depositors. The principal methods used by 

the Corporation to protect depositors in failed insured banks are 

directly paying insured deposits, and assisting in the absorption of 

failing institutions by other insured banks.

In deposit payoff cases, immediately following closure of the 

bank by the chartering authority, the Corporation sends its claim 

agents to the bank to begin preparations for the payment of insured 

deposits. The claims presented by depositors, together with the 

records of the bank, are used to determine the total amount of 

deposits held by each depositor. From this total, any matured debt 

owed by the depositor to the bank may be deducted, and the net 

amount that is eligible for deposit insurance is paid by the Corporation. In recent years, payment of insured deposits has usually begun 

within 5 to 7 days following the closure of the bank.

Whenever, in the judgment of its Board of Directors, the Corporation's risk or losses will thereby be reduced, the Corporation is 

authorized to assist financially in the absorption of an insured bank 

in financial difficulty by another insured bank. This assistance may 

take various forms which can be adapted to individual situations: 

the Corporation may purchase the assets or grant a loan secured by 

the assets of the distressed bank, and it may agree to indemnify an 

insured bank against actual and potential loss by reason of its 

assuming the liabilities and taking over the assets of another insured 

bank.

The deposit assumption method has significant advantages in providing full protection to all depositors and otherwise minimizing 

any disruption of banking services to the community. Aside from 

the statutory requisites, however, in many situations the use of this 

method is not a feasible alternative and, in fact, may not even be 

possible. In cases where fraud or misconduct appears to have been 

pervasive, the FDIC may decide that the indemnities that would 

have to be given to the assuming bank as protection against unknown or undetermined liabilities of the failing bank involve too 

much risk to the Corporation, even allowing for the premium which 

the assuming bank would pay for the sound assets and the liabilities 

it assumes. In unit banking States without holding companies, there 

may be too few banks eligible under State law to be acquiring banks 

and none of them may be able to get the necessary approvals for 

the transaction— because of their size relative to the failed bank, 

because of their own condition, or because of their existing competitive position in the market.

Enactment of the Federal Deposit Insurance Act in 1950 provided the Corporation with additional authority to deal with distressed banks short of actual failure. Section 13(c) of the Act

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

authorizes the Corporation to provide assistance to an operating 

insured bank under specified limited conditions. Such assistance to 

enable an insured bank to remain in operation can be granted only 

after 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 has 

used this authority on only three occasions. The Corporation first 

used its section 13(c) authority to assist a small bank in the Boston, 

Massachusetts, area in 1971, and the authority was used in the 

following year in the case of a large bank in Detroit, Michigan. In 

1974 the Corporation provided a short term loan under this authority to American Bank & Trust, Orangeburg, South Carolina, shortly 

before that bank's liabilities were assumed by Southern Bank and 

Trust Company with the Corporation's assistance.

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 the Corporation acquires when it 

provides financial assistance in deposit assumption cases. A t the end 

of 1974, the Division was handling 61 liquidation cases.

Protection of depositors, 1934-1974. Deposits held in all insured 

banks that required the disbursements of the Corporation from 1934 

through 1974 amounted to $4.5 billion (chart A), of which about 

99.5 percent have been paid or made available. Included in the total 

are the deposits of banks that continued in operation following 

assistance by the Corporation under the section 13(c) authority. 

Over 71 percent of the deposits were held in banks whose deposits 

were assumed by other insured banks, with the Corporation's assistance. By far the largest proportion of the recovery to depositors in 

payoff cases has been provided by FDIC payments of insured deposits, with additional payments received from the proceeds of 

liquidated assets, offsets against matured indebtedness, and pledged 

assets (table 1).

The Corporation makes disbursements when it pays depositors 

up to the insurance lim it in payoff cases and in return acquires their 

claims against the failed banks, when it acquires banks' assets held 

in receiverships, when it assists deposit assumptions through loans 

or purchases of assets, and when it provides assistance to enable an 

operating bank to remain open. In all cases since 1934, the Corporation's disbursements have totaled $1.3 billion (table 2). The net loss 

incurred or likely to be incurred by the FDIC in connection with all 

such assistance transactions exclusive of United States National

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
DEPOSIT INSURANCE DISBURSEMENTS 5

C h a rt A D EP O S ITS A N D LO S S E S 

IN A LL IN S U R E D B A N K S REQ UIRING D IS B U R S E M E N T S 

BY FDIC, 1 9 3 4 -1 9 7 4

D E P O S IT O R S

T o ta l D e p o sits

R e c o v e rie s by D e p o sito rs

A m o u n ts N o t Y e t M a d e

A v a ila b le to or

L o st by D e p o sito rs

FDIC

T o ta l D isb u rse m e n ts

b y F D IC

R e c o v e rie s by F D IC

L o sse s by F D IC

$1,113

m illio n

$ 2 2 4

j m illion

Bank, which was merged in 1973 with the Corporation's assistance, 

and Franklin National Bank is estimated to be about $75 million. 

As of year-end, the Corporation's Board of Directors established a 

reserve for loss in the United States National Bank failure of $150 

million. It could make no provision for loss in the Franklin National 

Bank failure because the assets it will have to collect were not then 

completely identified and very few of these assets had then been 

appraised. The Corporation estimates that it will have assets carried 

on Franklin National Bank's books of approximately $2.1 billion 

with which to discharge Franklin's liability to the Federal Reserve 

System which the Corporation assumed on the date of the bank's 

failure.

Banks failing in 1974. Four insured banks failed during 1974 

(table 3), including Franklin National Bank, New York City, the 

largest insured bank to fail in the Corporation's history. In all four 

failures in 1974, the Corporation provided financial assistance to 

enable other insured banks to assume substantially all the deposit 

liabilities of the banks which failed.

The failures of the four insured banks were attributable to various causes. In the case of Franklin National, a decline in earnings, 

resulting in part from large foreign exchange trading losses, conDigitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Table 1. PFlOTECTION OF DEPOSITORS OF FAILED BANKS REQUIRING 

DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,

1934-1974

Item

A ll cases 

(506 banks)

Percent

Deposit 

p a yo ff cases 

(297 banks)

Percent

Deposit 

assumption cases 

(209 banks)

Number of depositors or accounts-total1 .

Full recovery received 9r available___

From FD IC 3 .........................................

From o ffse t5.........................................

From security or pieference6 ..........

From asset liq u id at on7......................

Full recovery not received as of December 31,

1974 ................................................

Term inated c a se s..............................................

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

Amount of deposits (in thousands)-total.

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

By FD IC 3 .......................................

By offset9 .......................................

By security or preference10 . . .

By asset liq u id a tio n 11.................

Not paid as of December 31,1974

Term inated c a se s ........................

Active cases12................................

2,853,847

2,848,345

2,801,457

40,879

3,116

2,893

5,502

3,433

2,069

3,634,052

3,612,245

3,512,841

21,085

37,338

40,981

21,807

2,642

19,165

100.0

99.8

98.2

1.4

0.1

0.1

0.2

0.1

0.1

100.0

99.4

96.7

0.6

1.0

1.1

0.6

0.1

0.5

592,8382

587,336

540,4484 

40,879 

3,116 

2,893

5,502

3,433

2,069

409,946

388,139

288,735s

21,085

37,338

40,981

21,807

2,642

19,165

100.0

99.1

91.2 

6.9 

0.5 

0.5

0.9

0.6

0.3

100.0

94.7

70.4

5.2 

9.1

10.0

5.3

0.6

4.7

2.261.009

2.261.009

2.261.009

100.0

100.0

100.0

3.224.106

3.224.106

3.224.106

100.0

100.0

100.0

1 Num ber of depositors in deposit p a yo ff cases; num ber of accounts in deposit assumption cases.

2 Revised.

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

by FDIC disbursements of $763,525 thousand, in deposit assumption cases.

4 1ncludes 60,010 depositors, in term inated cases, w ho failed to claim the ir insured deposits (see note 8).

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

offsets.

6 Excludes depositors, paid in part by FD IC , whose deposit balances were less than the insurance m axim um .

7The insured portions of these depositor claims were paid by the C orporation.

8 1ncludes $181 thousand jnclaim ed insured deposits in term inated cases (see note 4).

9 1ncludes all amounts paid by offset.

1 °lncludes all secured and preferred claims paid from asset liquidation; excludes secured and preferred claims paid by the 

C orporation.

111ncludes unclaimed deposits paid to authorized public custodians.

121 ncludes $14,287 thousand representing deposits available, expected through offset, or expected from proceeds o f liquidations.

tributed to other difficulties which eventually led to subtantial deposit runoffs. Franklin National was declared insolvent and closed 

by the Comptroller of the Currency on October 8. A t the time of 

its closing, the bank operated 109 offices and had assets of over 

$3.6 billion and deposits of about $1.4 billion. Immediately upon 

closing the bank, the Comptroller of the Currency, pursuant to 

applicable provisions of the Federal Deposit Insurance Act, appointed the Corporation as receiver. Almost simultaneously, in response to competitive bids submitted in accordance with predrafted 

papers, the Corporation's Board of Directors entered into a purchase and assumption transaction with European-American Bank & 

Trust Company, a bank chartered by the State of New York. 

European-American, for a purchase price of $125 million, agreed to 

assume substantially all the deposit liabilities of the failed bank. In 

a companion transaction, the trust business of Franklin National 

was acquired by Bradford Trust Company, a New York chartered

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
DEPOSIT INSURANCE DISBURSEMENTS

Table 2. ANALYSIS OF DISBURSEMENTS, RECOVERIES, AND LOSSES 

IN DEPOSIT INSURANCE TRANSACTIONS,

JANUARY 1, 1934— DECEMBER 31, 1974 

(In thousands)

Type o f disbursement Disbursements Recoveries1 Losses

A ll disbursem ents-total2 .............................................................................................. $1,337,644 $1,113,171 $224,473

P rincipal disbursements in deposit assumption and p a yo ff c a s e s -to ta l____ 1,209,262 993,926 209,336

Loans and assets purchased (209 deposit assumption cases):

Total December 3 1 ,1 9 7 4 .............................................................................

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

763,525 379,736

213,573

170,216

Notes purchased to facilitate deposit assum ptions.......................................

Deposits paid (297 deposit p ayoff cases):

To December 3 1 ,1 9 7 4 ..................................................................................

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

158,000

286,834

903

158,000

216,566

32,051

- 0 -

39,120

Advances and expenses in deposit assumption and payoff c a s e s -to ta l------ $ 72,061 $ 62,238 $ 9,823

Expenses in liquidating assets:

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

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

41,061

21,177

3,636

6,187

41,061

21,177

- 0 -

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

Field p ayoff and other insurance expenses in 297 deposit p ayoff cases.

(3)

(3)

3,636

6,187

Other d isb u rse m e n ts-to ta l....................................................................................... $ 56,321 $ 51,007 $ 5,314

Assets purchased to facilitate term ination of liquidations:

To December 3 1 ,1 9 7 4 ..................................................................................

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

9,683 4,965

42

4,676

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

Assistance to operating insured b a n k s ............................................................

638

46,000

(3)

46,000

638

- 0 -

1 Excludes amounts returned to closed bank equity holders and $23.0 m illion of interest and allowable return received by FDIC. 

in c lu d e s estimated amounts fo r pending and unpaid claims in active cases.

3 N ot recoverable.

institution. As a result of these transactions, some 630,000 depositors, including 6,000 whose individual accounts exceeded the 

$20,000 insurance limit then in effect, were fully protected with no 

perceptible interruption in banking services.

American Bank & Trust, Orangeburg, South Carolina, at the time 

of its closing the sixth largest bank in the State, held assets totaling 

nearly $150 million and operated 29 offices in 20 communities. In

Table 3. INSURED BANKS CLOSED DURING 1974 REQUIRING 

DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION

Name and location

Date of 

deposit 

assumption

Number 

of depositors' 

accounts

A m ount 

of deposits 

(in thousands)1

FDIC disbursement 

(in th o u ­

sands)2

T o t a l.......................................................... 704,283

66,232

$1,575,832

112,703

$174,211

American Bank & Trust 61,289

Orangeburg, South Carolina

September 20, 1974

T ri-C ity Bank 

Warren, Michigan

September 27, 1974 6,517 14,876 10,976

Franklin National Bank 

New Y ork, New Y ork

October 8, 1974 630,000 1,444,982 100,000

Cromwell State Savings Bank 

Cromwell, Iowa

October 9, 1974 1,534 3,271 1,946

1 A ll deposits were made available in fu ll through assuming banks.

in c lu d e s disbursements made to December 31, 1974, plus additional disbursements required in these cases; includes notes 

purchased to facilitate deposit assumptions.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

10 communities AB&T was the only bank providing commercial 

banking services. On September 8, 1974, the Board of Directors of 

the Corporation, under the authority of section 13(c) of the Federal Deposit Insurance Act, announced that it had arranged to provide whatever cash the bank needed to enable it to deal with a short 

term liquidity problem. The announcement stated that the d ifficulties of the bank involved a number of sizable real estate loans 

which had become illiquid under the prevailing economic conditions. Shortly thereafter, on September 20, the Board of Directors of the FDIC and the South Carolina authorities announced that 

Southern Bank and Trust Company, Greenville, as part of a purchase and assumption transaction with the Corporation, had agreed 

to assume all the deposit liabilities of AB&T. The action, which 

avoided any need for a statutory payoff of AB&T's 65,000 depositors, followed a decision by the State authorities that the bank 

must be closed because of an inability to meet the demands of its 

depositors. In this transaction, Southern Bank and Trust assumed 

approximately $132 million of deposits and other liabilities and, in a 

competitive bidding procedure, paid a purchase premium of nearly 

$5.6 million. The Corporation stated that the large quantity of 

illiquid and adversely classified loans in AB&T resulted in a negative 

earnings situation with no prospect for reversal in the forseeable 

future, making impossible any solution that would have kept that 

bank as an ongoing institution.

Two much smaller institutions, Tri-City Bank, Warren, Michigan, 

and Cromwell State Savings Bank, Cromwell, Iowa, failed during 

1974. Involved in these cases were self-serving loans and other misapplications of funds. The total deposits of these banks, which were 

assumed by other insured banks with the Corporation's assistance, 

were about $14.9 million and $3.3 million, respectively.

SUPERVISORY ACTIVITIES

The Corporation has some supervisory authority with respect to 

all insured banks, and has general supervisory responsibilities for 

insured banks that are not members of the Federal Reserve System. 

A total of 8,448 nonmember insured commercial banks, holding 

assets (domestic) of $193.6 billion, were in operation in 1974. Nonmember insured commercial banks represented 58.3 percent of all 

commercial banks in the U.S. and 20.9 percent of commercial bank 

assets (domestic), compared to 46.4 percent and 13.0 percent, respectively, in 1950 (chart B).

Examinations. Along with the State banking departments which 

chartered them, the Corporation regularly conducts examinations

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
SUPERVISORY AC TIV ITIE S 9

C h a rt B

N U M B E R A N D A S S E T S OF C O M M E R C IA L B A N K S 

IN TH E U N ITE D S TA T E S , 1 9 5 0 - 1 9 7 4

Thousands 

of Banks 

2 5 --------

Thousands 

of Banks 

-------25

NUMBER OF BANKS

ALL C O M M E R C IA L B A N K S

N O N M E M B E R IN S U R E D B A N K S

o— h H — h I ..4 i— I— I— I— M — hH — I— h i I I" I I— I— I ■ 4 - I— |— o

1950 '51 '52 '53 '54 '55 '56 '57 '58 '59 '60 '61 '62 '63 '64 '65 '66 '67 '68 '69 '70 '71 '72 '73 '74

Billions 

of Dollars 

1,000----

ASSETS (DOMESTIC) OF BANKS

Billions 

of Dollars 

---- 1,000

1950 '51 '52 '53 '54 '55 '56 '57 '58 '59 '60 '61 '62 '63 '64 '65 '66 '67 

*l\let assets, excluding loss reserves.

70 '71 '72 '73 '74

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

of such nonmember insured banks to determine their current condition, to evaluate bank management, and to discover and obtain 

correction of unsafe and unsound practices or violations of laws and 

regulations. Special investigations are also made in connection with 

applications for Federal deposit insurance, mergers, establishment 

of branches, and other actions requiring the prior approval of the 

Corporation.

A 13-month experimental program in the examination of Statechartered nonmember banks was started in three States at the beginning of the year. Under this program, the Corporation withdrew 

from its usual examination of all insured nonmember State banks in 

Iowa, Georgia, and Washington and, for a specified number of such 

banks in each State, agreed to rely heavily upon examinations by 

the respective State banking departments for determination of their 

financial condition. At year-end 1974, 527 banks were affected by 

the Selective Withdrawal Program, 430 of which had been examined 

by the respective State authority. Banks not under the Selective 

Withdrawal Program continued to be examined by the Corporation 

in each of the three States. The FDIC has reserved the right to 

examine any such bank whether or not it is scheduled for exclusive 

State examination, and has also reserved the right to terminate or 

modify the program at any time.

During the test period, which has since been extended through 

December 31, 1975, the Corporation intends to examine each bank 

under the program for compliance with certain Federal laws utilizing a Compliance Examination Report developed specifically for 

this purpose. The same type of independent compliance examination is also being conducted among non-program banks in the 3 

States, and 95 such examinations were made in other States as a 

further experiment. In September, independent compliance examinations were adopted on a limited basis throughout the country, 

and 2,182 such examinations were completed in 1974.

The Corporation conducted over 7,400 examinations of main 

offices and approximately the same number of examinations of 

departments and branches of nonmember insured banks during 

1974 (table 4). It also made 304 investigations in connection with 

applications of proposed new banks or operating noninsured banks 

for Federal deposit insurance, 1,013 investigations in connection 

with applications for the Corporation's consent to the establishment of new branches, and 212 investigations in connection with 

applications for consent to consolidate, merge, purchase assets, or 

assume liabilities.

Applications for deposit insurance and branches. Before approving an application for deposit insurance, the Corporation is 

required, under section 6 of the Federal Deposit Insurance Act, to

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
SUPERVISORY AC TIVITIES 11

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. National banks receive deposit 

insurance upon their chartering and State member banks upon joining the Federal Reserve System— in both cases after certification by 

the responsible Federal agency that the criteria mentioned above 

were given consideration. State nonmember banks apply directly to 

the Corporation for deposit insurance.

The Corporation's Board of Directors considered 215 applications for Federal deposit insurance during 1974, approving 207 

applications (chart C) and denying 8 (one of which was subsequently approved following amendment to the application). Sixtytwo of the approved applications came from the unit-banking States 

of Florida, Illinois, and Texas.

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.

The Corporation's Board of Directors approved 241 applications 

for new branches during 1974, and 581 were approved under delegated authority by the Director of the FDIC's Division of Bank

Table 4. BANK EXAMINATION ACTIVITIES OF 

THE FEDERAL DEPOSIT INSURANCE CORPORATION 

IN 1973 AND 1974

A c tiv ity

Num ber

1974 1973

Field examinations and investigations-total ........................................................................ 22,699 19,959

Examinations of main o ffic e s-to ta l............................................................................... 7,451 7,995

Regular exam inations o f insured banks no t members o f Federal Reserve S y s te m ............... 7,331 7,863

Re-examinations; or other than regular e x a m in a tio n s .................................................................. 98 111

Entrance exam inations of operating noninsured b a n k s ............................................................... 13 14

Special exa m in a tio n s.............................................................................................................................. 9 7

Examinations of departments and branches.................................................................... 7,558 7,474

Exam inations of trust d e p a rtm e n ts.................................................................................................... 1,296 1,452

Exam inations of bra n ch e s..................................................................................................................... 6,262 6,022

Investigations.............................................................................................................. 4,515 4,490

New bank investigations ....................................................................................................................... 304 431

State banks members of Federal Reserve S y s te m .................................................................... 6 15

Banks not members of Federal Reserve S y s te m ....................................................................... 298 416

New branch investigations..................................................................................................................... 1,013 1,118

Mergers and co n s o lid a tio n s .................................................................................................................. 212 264

Miscellaneous investigations ................................................................................................................ 2,986 2,677

Compliance exam inations.............................................................................................. 3,175

F u l l .............................................................................................................................................................. 993

L im ite d ...................................................................................................................................................... 2,182

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Chart c A P P LIC A T IO N S FOR D E P O S IT IN S U R A N C E A N D 

B R A N C H ES A P P R O V E D BY THE FED ER AL D EP O S IT 

IN S U R A N C E C O R P O R A TIO N , 1 9 6 0 - 1 9 7 4

Hundreds Hundreds 

1 1 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------11

^Includes facilities and other limited service offices

Supervision or by the Regional Directors. Four such applications 

were denied. Two were denied primarily because they appeared 

substantially anticompetitive under the facts presented; the other 

two denials were based on one, or a combination of more than one, 

of the other factors considered. Of 174 applications considered in 

1974 for the Corporation's prior consent to the operation of lim ited branch facilities, 13 were approved by the Board of Directors 

and 161 were approved under delegated authority.

Mergers. The Bank Merger Act of 1960, amending section 18(c) 

of the Federal Deposit Insurance Act, requires the approval of a 

Federal bank supervisory agency before any insured bank may engage in a merger transaction, as defined in the Act. If the surviving 

institution is to be an insured nonmember bank, or in any merger of 

an insured bank with a noninsured institution, the Corporation is 

the deciding agency.

The Act, as amended in 1966, provides further that, before approving any proposed merger of an insured bank, the deciding Federal agency must consider the effect of the transaction on competition, the financial and managerial resources of the banks, the future 

prospects of the existing and proposed institutions, and the convenience and needs of the community to be served. A merger that

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
SUPERVISORY AC TIVITIES 13

would be in furtherance of an attempt to monopolize or that would 

result in a monopoly under the Sherman Antitrust Act may not be 

approved. A merger whose effect may be to substantially lessen 

competition in any section of the country, or tend to create a 

monopoly, may be approved, but only if the responsible agency 

finds that these anticompetitive effects are clearly outweighed in 

the public interest by the probable effects on the needs and convenience of the community to be served. Following approval of a 

bank merger by the Federal supervisory agency, the Justice Department may, within a 30-day period (or in emergency cases, within 5 

days), bring an action under the antitrust laws to prevent the merger.

The Corporation acted on 56 merger-type applications in 1974, 

approving 55 and denying one. The Corporation also approved 67 

applications for merger transactions involving corporate reorganizations which, as such, had no competitive effect. 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 1974 is contained on pages 33— 172 of this report.

The Bank Merger Act requires in addition that before deciding on 

any application, unless the agency finds that it must act immediately in order to prevent the probable failure of one of the banks 

involved, 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. In 1974, 52 advisory reports were filed on the competitive 

factors involved in merger transactions where the resulting institution would be a national or State member bank. In two of those 

reports, the deciding agency was informed that the Corporation 

considered the competitive factors presented to be adverse in one or 

more respects. In one of these cases, the Board of Governors of the 

Federal Reserve System subsequently approved the application; in 

the other, the Comptroller of the Currency had taken no action by 

the end of the year. A total of 79 advisory reports involved corporate reorganizations that, as such, had no competitive effect.

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

1974 are detailed in tables 5 and 6. In 1974, a total of 124 institutions were absorbed, compared to 101 in 1973 (chart D). (The 

merger statistics in chart D do not include corporate reorganizations 

of individual banking institutions, such as banks in process of forming one-bank holding companies, and other merger transactions 

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

operating banks; see table 5, note 1.)

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Table 5. MERGERS, CONSOLIDATIONS, ACQUISITIONS OF ASSETS AND 

ASSUMPTIONS OF LIABILITIES APPROVED UNDER SECTION 18(c) 

OF THE FEDERAL DEPOSIT INSURANCE ACT DURING 1974

Offices operated

Barks 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 ................................................................................ 239 $46,869,539 2929 2926

Absorbing b a n k s ...................................................................... 1152 40,337,5203 24713 29263

Absorbed banks ...................................................................... 124 6,532,019 458

N a tio n a l............................................................................... 43 4,893,369 250

State member FRS............................................................. 14 204,324 28

Not member FR S............................................................... 56 1,340,207 169

Noninsured inst tu tio n s ................................................... 11 94,119 11

CASES W ITH R ESULTING BANK 

A N A T IO N A L B AN K

Banks in v o lv e d ................................................................................ 120 27,986,807 1747 1745

Absorbing b a n k s ...................................................................... 57 26,500,578 1571 1745

Absorbed banks ...................................................................... 63 1,486,229 176

N a tio n a l................................................................................ 29 667,629 78

State member FRS............................................................. 9 138,935 21

N ot member FRS............................................................... 24 679,399 76

Noninsured in s titu tio n ..................................................... 1 266 1

CASES W ITH R ESULTING B AN K 

A STATE B AN K MEMBER OF THE 

FE D E R A L RESERVE SYSTEM

Banks in v o lv e d ................................................................................ 18 2,807,008 187 187

Absorbing b a n k s ....................................................................... 9 2,444,558 145 187

Absorbed banks ...................................................................... 9 362,450 42

N a tio n a l................................................................................ 7 345,463 39

Not member FRS.............................................................. 2 16,987 3

CASES W ITH R E SU LTIN G B A N K 

N O T A M E M B E R O F T H E 

FE D E R A L RESERVE SYSTEM

Banks in v o lv e d ................................................................................ 101 16,075,724 995 994

Absorbing b a n k s ...................................................................... 49 11,392,384 755 994

Absorbed banks ...................................................................... 52 4,683,340 240

N a tio n a l................................................................................ 7 3,880,277 133

State member FRS............................................................. 5 65,389 7

Not member FRS............................................................... 30 643,821 90

Noninsured inst tu tio n s ................................................... 104 93,853 10

10 m itte d are corporate reorganizations and other absorptions involving banks that p rio r to the transaction did n o t individually 

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

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

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

transaction and the num ber of offices before the firs t and after the latest transaction.

4AII merged institutions were savings and loan associations.

Cease-and-desist and termination-of-deposit-insurance proceedings. When insured banks are found to be in violation of laws or 

regulations, or engaging in unsafe or unsound banking practices, the 

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

the event such efforts to gain voluntary compliance do not succeed, 

the Corporation may initiate cease-and-desist proceedings against an 

insured nonmember bank and termination-of-deposit-insurance proceedings against any insured bank involved.

Under section 8(b) of the Federal Deposit Insurance Act, the 

Corporation initiates cease-and-desist proceedings by the issuance of 

a Notice of Charges. The Notice specifies the alleged violations or 

the unsafe or unsound practices engaged in and fixes a time for an 

administrative hearing at which the bank may respond to the 

charges. If the evidence presented at the hearing establishes the

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
SUPERVISORY A C TIV ITIE S 15

existence of the violations or practices, or upon consent of the bank 

to the issuance of such an order, the Corporation may order the 

bank not only to stop the violations or practices but also to take 

affirmative action to correct the conditions that have resulted. Of 

the 18 cease-and-desist orders against insured State nonmember 

banks that were outstanding at the beginning of 1974, 9 were terminated during the year (table 7). In 1974 the Corporation initiated 

five section 8(b) proceedings; four culminated in the entry of 

cease-and-desist orders, and one proceeding was pending at year-end 

after the completion of an administrative hearing. As a consequence, 13 cease-and-desist orders against insured State nonmember 

banks were outstanding at the end of 1974.

In termination-of-deposit-insurance proceedings initiated under 

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

practices or violations with the designated period may result, following an administrative hearing at which the bank may respond to 

the Corporation's charges, in a Board of Directors' order to terminate the bank's deposit insurance. If the insurance is terminated, 

insured funds on deposit at the time of the termination, less any 

subsequent withdrawals, continue to be insured for a period of 2

Table 6. APPROVALS UNDER SECTION 18(c) OF THE FEDERAL 

DEPOSIT INSURANCE ACT DURING 1974,

BANKS GROUPED BY SIZE AND IN STATES 

ACCORDING TO STATUS OF BRANCH BANKING

Absorbing banks Absorbed banks

N um ber o f banks by 

size (resources in $m illions)

Num ber

of

banks

Num ber

of

branches

Resources

(in

thousands)

N um ber of banks by size 

(resources in $m illions)

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

Over

100

T o ta l-U .S . 115 124 334 $6,532,019 22 28 46 20 8

- 5 ............... 2 2 7 50,189 0 1 0 1 0

5 -1 0 ............... 5 5 0 18,649 4 1 0 0 0

1 0 -2 5 ............... 11 11 8 103,763 5 3 2 1 0

2 5 -1 0 0 ............... 34 36 69 777,835 9 8 14 4 1

1 0 0 -5 0 0 ............... 45 49 112 1,410,530 2 12 20 11 4

Over 500 ............... 18 21 138 4,171,053 2 3 10 3 3

(A) Statewide

branching 38 44 125 1,303,547 4 7 18 11 4

- 5 . . . ............... 1 1 6 42,010 0 0 0 1 0

1 0 -2 5 ............... 2 2 1 7,778 1 1 0 0 0

2 5 -1 0 0 . . . . ............... 11 13 37 356,648 1 1 8 3 0

1 0 0 -5 0 0 . . . . ............... 15 16 53 424,519 2 2 6 4 2

Over 500 ___ ............... 9 12 28 472,592 0 3 4 3 2

(B) Lim ited-area

branching 69 72 209 5,176,989 13 19 27 9 4

- 5 ............... 1 1 1 8,179 0 1 0 0 0

5 -1 0 ............... 4 4 0 14,737 3 1 0 0 0

1 0 -2 5 ............... 7 7 7 88,976 2 2 2 1 0

2 5 -1 0 0 ............... 20 20 32 395,411 6 7 5 1 1

1 0 0 -5 0 0 ............... 28 31 59 971,225 0 8 14 7 2

Over 500 ------ ............... 9 9 110 3,698,461 2 0 6 0 1

(C) U nit

banking 8 8 0 51,483 5 2 1 0 0

5 -1 0 ............... 1 1 0 3,912 1 0 0 0 0

1 0 -2 5 . . ............... 2 2 0 7,009 2 0 0 0 0

2 5 -1 0 0 ............... 3 3 0 25,776 2 0 1 0 0

1 0 0 -5 0 0 . . . . ............... 2 2 0 14,786 0 2 0 0 0

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

C h a rt D M ER G ERS A P P R O V E D BY

FEDERAL B A N K S U P E R V IS O R Y A G E N C IE S , 1 9 6 0 - 1 9 7 4

Number of Approvals Number of Approvals

EH Approved by Com ptroller of the Currency

Approved by Board o f Governors o f the Federal Reserve System

| Approved by FDIC

0 0

1960* 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974

*Period beginning May 12, 1960, to end of year.

years. In the three termination-of-deposit-insurance cases which remained open at the beginning of 1974 awaiting expiration of the 

time periods specified in which to make corrections, re-examination 

of the banks, or analysis of their most recent reports of examination, two proceedings were concluded after corrections were effected. During 1974, the Corporation initiated three new proceedings 

to terminate deposit insurance (table 8). Consequently, four such 

proceedings remained open at year-end 1974.

Removal proceedings. Removal proceedings, against an officer or 

director 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, may be initiated by the Corporation under section

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

OR UNSOUND PRACTICES OR VIOLATIONS OF LAW OR REGULATIONS, 1974

Total actions taken: 1971-1974 ............................................................................................................................... 35

Cease-and-desist orders issued in 19741.................................................................................................................. 4 2

Cease-and-desist orders d isco n tin u e d .................................................................................................................................................... 9

Cease-and-desist orders outstanding as o f December 31, 1974 .................................................................................................... 13

1The FD IC 's a u th o rity to issue cease-and-desist orders was added in 1966 (12 U.S.C. 1818 (b)). The firs t use of this a u th o rity 

occured in 1971.

2 0ne proceeding in 1974, included in the to ta l, did not result in entry o f a cease-and-desist order.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
SUPERVISORY A C TIV ITIE S 17

8(e) of the Federal Deposit Insurance Act. The Corporation is 

authorized to take such action if it determines that the conduct will 

cause substantial financial loss or other damages to the bank or will 

seriously prejudice the interests of the bank's depositors, and that 

the conduct involves personal dishonesty. During 1974, one director of an insured State nonmember bank was removed pursuant to 

an order issued under section 8(e).

Suspension proceedings. When an officer, director, or other person who participates in the management of an insured nonmember 

bank 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, the 

Corporation may suspend or prohibit the person from participating 

in the affairs of the bank under section 8(g) of the Federal Deposit 

Insurance Act. Suspension proceedings are initiated by the issuance 

of a Notice and Order of Suspension and Prohibition, served on the 

individual involved, that specifies the charges and further orders the 

individual to be suspended from his position and prohibited from 

participating in the affairs of the bank. The Corporation may issue a 

formal Order of Removal on the person 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 1974, the Board of Directors issued orders suspending 

three persons who were charged with felonies involving dishonesty 

or breach of trust from their offices in insured State nonmember 

banks. Ten individuals charged with felonies involving dishonesty or

Table 8. ACTIONS TO TERMINATE INSURED STATUS OF BANKS CHARGED 

WITH UNSAFE OR UNSOUND BANKING PRACTICES OR VIOLATIONS 

OF LAW OR REGULATIONS, 1936-1974

Disposition or status 1 9 3 6 -1 9 7 4 1

Started 

during 1974

Total banks against w hich action was ta k e n ................................................................................................ 224 3

Cases c lo s e d ..................................................................................................................................................... 220

Corrections m a d e .................................................................................................................................... 95

Banks absorbed or succeeded by other banks................................................................................. 73

W ith financial aid of the C orporation.......................................................................................... 64

W ith out financial aid of the C o rp o ra tio n ................................................................................. 9

Banks suspended p rio r to setting date of term ination o f insured status by Corporation . 37

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

failure to make c o rre c tio n s ..................................................................................................... 13

Banks suspended prior to or on date of term ination of insured status .........................

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

9

4

Formal w ritte n corrective program imposed and 8(a) action d is c o n tin u e d .........................

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

1

1

Cases no t closed December 31, 1974 ...................................................................... .............................. 4 3

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

or analysis o f its most recent report of e x a m in a tio n ..................................................... 4 3

1No action to term inate the insured status o f 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 m onths after its insured status was term inated.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

breach of trust voluntarily resigned or suspended themselves from 

their positions with insured State nonmember banks following 

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

Interest rate ceilings. Public Law 74-305 (the Banking Act of 

1935), signed into law on August 23, 1935, granted authority to 

the FDIC to establish maximum rates of interest payable on time 

and savings accounts by nonmember insured commercial banks. The 

Board of Governors of the Federal Reserve System was given this 

authority with respect to member banks by the Banking Act of 

1933, signed on June 16 of that year. Effective September 21, 

1966, a bill was enacted by Congress (80 Stat. 824) providing the 

regulatory agencies with more flexibility in setting rate ceilings, and 

bringing savings and loan associations under rate regulation. Federally insured mutual savings banks were brought under this authority of the Corporation with the enactment of Public Law 89-597 in 

October 1966. Pursuant to its authority, the Corporation has established maximum rates applicable to nonmember insured banks in 

Part 329 of its rules and regulations. Tables 125 and 126 of this 

report contain a recapitulation of changes in the ceiling rates for 

insured commercial banks and mutual savings banks in the U.S.

Consumer protection. The FDIC is responsible for administrative 

enforcement of the Truth in Lending Act and the Fair Credit Reporting Act with respect to insured nonmember banks. The Truth 

in Lending Act requires creditors to disclose the cost and other 

terms of consumer credit in a prescribed manner and at specified 

times so that consumers may shop for the best credit terms and 

make sound judgments regarding the use of consumer credit. The 

Fair Credit Reporting Act requires creditors to make certain disclosures when information in a credit report from a consumer 

reporting agency or obtained from a third party contributes to a 

denial or an increase in the cost of consumer credit. These disclosures are designed to enable consumers to seek out and correct 

erroneous information regarding their credit standings. Checks for 

compliance with these laws were a routine part of the bank examinations conducted by FDIC examiners during 1974.

Under the Securities Exchange Act of 1934, the Corporation 

exercises all "the powers, functions, and duties" otherwise vested in 

the Securities and Exchange Commission "to administer and enforce" the registration, company-reporting, and related provisions 

of that Act with respect to insured nonmember banks. These provisions are applicable to banks with more than $1 million in assets 

which have 500 or more holders of any class of equity security. 

Under these provisions and the Corporation's regulations thereunder, the banks are required to file an initial registration statement 

and periodic reports (annually, semi-annually, and quarterly) as well

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

as a special report covering any material event which occurred in 

the preceding month. Any matter presented for a vote of security 

holders must be effectuated through a proxy statement complying 

with the Corporation's regulations, and where directors are to be 

elected, the proxy statement must be accompanied or preceded by 

an annual report disclosing the financial condition of the bank. 

Officers and directors of a bank whose securities are registered and 

any person or related group of persons holding more than 5 percent 

of such securities must report their holdings and any changes which 

occur to the Corporation.

All required statements and reports filed with the Corporation 

under the Securities Exchange Act are public documents. All such 

statements and reports are available for inspection at the Corporation's headquarters and copies of registration statements and company reports, proxy statements, and annual reports to shareholders 

are also available at the New York, Chicago, and San Francisco 

Federal Reserve Banks as well as at the Reserve Bank of the district 

in which the bank filing the report is located.

During 1974, the Corporation received securities registration 

statements from 61 banks, bringing the year-end total of registered 

nonmember banks to 290 compared to 262 a year earlier. Additions 

included two registered banks that withdrew from the Federal Reserve System and six banks that converted from national to State 

charters. Termination of the registration of 33 banks resulted 

primarily from their merging into other operating banks or becoming subsidiaries of bank holding companies.

Changes in bank ownership and loans secured by bank stock. 

Section 7 of the Federal Deposit Insurance Act, as amended in 

1964, requires the chief executive officer of an insured bank to 

report to the appropriate Federal supervisory agency any change in 

the bank's outstanding voting stock that results in a change of 

control of the bank. In addition, a report is required whenever any 

insured bank 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 organized banks). This report is filed by 

the institution making such a loan with the supervisory agency 

having primary responsibility for the bank whose stock secures the 

loan. Banks must also report any change or replacement of the 

bank's chief executive officer or of any director that occurs during 

a 12-month period following the change in control. The Corporation received 483 notices of change in control involving insured 

nonmember banks during 1974.

Bank security. Under the Bank Protection Act of 1968 the Corporation has responsibility, with respect to banks under its general 

supervision, to establish minimum standards for the installation, 

maintenance, and operation of security devices and procedures to

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
2 0 FEDERAL DEPOSIT INSURANCE CORPORATION

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

the Bank Protection Act, and on November 1, 1973, several revisions were adopted. Each bank is required, under section 326.5 of 

the Corporation's rules and regulations to submit compliance reports as of the last business day of June of each calender year, and 

to submit crime reports following the perpetration of a robbery, 

burglary, or nonbank employee larceny. During 1974 the Corporation received 833 crime reports filed pursuant to section 326.5(d) 

of its regulations.

Supervisory training activities. Formal programs for bank examiners include, for new trainees, a course in the fundamentals of 

banking and bank examinations; for assistant examiners, a second 

course emphasizing accrual accounting, audit techniques, and bank 

operations, with a portion devoted to examinations of computerized banks; and for senior assistant examiners, a program centering 

on credit analysis, asset appraisal, bank management simulation, 

and Corporation policies and objectives. An advanced course in 

examination of computerized banks, and basic and advanced 

courses in examining trust departments are also included for bank 

examiners. A course designed to provide further advanced training 

for senior examiners was recently initiated.

During 1974, the number of examiners from the Corporation, 

State banking departments, and foreign central banks participating 

in programs of the Bank Examination School totaled approximately 

1,100. The participation by the State banking departments involved 

about 150 examiners under a joint program with the Conference of 

State Bank Supervisors. The numbers of participants under these 

various programs were approximately the same as in 1973.

Employees enrolled during 1974 in training courses outside the 

Corporation included 80 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.

Research and statistics. The Federal bank supervisory agencies 

receive a report of condition quarterly and a report of income and 

expenses annually from banks for which the respective agencies 

have general supervisory responsibility. The Corporation also 

receives semiannual reports of condition from noninsured banks. The 

data for all banks, collected on reporting forms that are identical 

among the Federal agencies, are processed by the Corporation and 

are published for the mid-year and year-end call dates.

During 1974, the Corporation's Research Division conducted, or 

participated in, surveys of the geographic distribution of deposit 

accounts, trust assets of insured commercial banks, mortgage rates

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
SUPERVISORY A C TIV ITIE S 21

and mortgage lending by banks, and interest rates paid on savings 

and time deposits. Results of these surveys are released in publications of the FDIC and other Government agencies. Two other surveys were initiated during the year. A monthly survey of insured 

and noninsured mutual savings banks was instituted to gather income and deposit flow data. Weekly reports on various deposit and 

cash items from a sample of nonmember commercial banks were 

initiated on a test basis in July to determine whether these data 

would be useful in improving the Federal Reserve System's estimates of the nation's money supply.

During 1974 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.

Working 

Paper Number

74— 1 "Recursive Bank Asset Management: Actual Versus Optimal Results" by David A. Walker and John A. Castner, Jr.

74— 2 "Demand for Commercial Bank Production Workers and A dministrators: Demand Deposit Operations" by William A. Longbrake and H. Douglas Merrill.

74— 3 "Problem Banks: Identification and Characteristics" by Joseph 

F. Sinkey, Jr. and David A. Walker.

74— 4 "A Multivariate Statistical Analysis of the Characteristics of 

Problem Banks" by Joseph F. Sinkey, Jr.

74— 5 "O u tp u t Mix and Jointness in Production in the Banking F irm " 

by Zvi Adar, Tamir Agmon, and Yair E. Orgler.

74— 6 "The Recent Loan Loss Experience of New Minority-Owned 

Commercial Banks" by John T. Boorman.

74— 7 "D ifferential Effects of Single-Plant, Multi-Plant, and M ulti-Firm 

Organizational Forms on Cost Efficiency: A Commercial Banking Illustration" by William A. Longbrake.

74— 8 "Reserve Requirements, Federal Reserve Membership and Bank 

Performance" by Gary G. Gilbert and Manferd 0 . Peterson.

74— 9 "The NOW Account Experim ent" by William A. Longbrake and 

Sandra B. Cohan.

74— 10 "The Impact of Changes in Federal Reserve Membership on 

Commercial Bank Performance" by Gary G. Gilbert and Manferd 0 . Peterson.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Working 

Paper Number

74— 11 "A n Integrated Model for Accounts Receivable Policy" by Zvi 

Lieber and Yair E. Orgler.

74— 12 "A Comparative Analysis of the Portfolio and Performance 

Operations of Problem Commercial Banks'" by Joseph F. Sinkey, Jr.

74— 13 "Capital Adequacy and Net Recoveries from Failed Banks" by 

Yair E. Orgler.

74— 14 "M oney Illusion and the N eutrality of M oney" by Stephen A. 

Buser.

74— 15 "The Failure of the United States National Bank of San Diego: 

A P ortfolio and Performance Analysis" by Joseph F. Sinkey, Jr.

74— 16 "Commercial Banking Structure in the United States: Its Development and Future" by William A. Longbrake and John A. 

Haslem.

74— 17 ' Adverse Publicity and Bank Deposit Flows: The Cases of 

Franklin National Bank of New Y ork and United States National Bank of San Diego" by Joseph F. Sinkey, Jr.

74— 18 "Financial Policy in Bank Holding Companies" by William A. 

Longbrake.

74— 19 "A Survey of Some Major Issues on Electronic Funds Transfer 

Systems" by William H. Roelle and David A. Walker.

The Corporation announced during the year the awarding of dissertation fellowships to three Ph.D. candidates. 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 is managed by a 

three-member Board of Directors. Two are appointed to the Board 

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

of the Senate, and the third member is the Comptroller of the

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
AD M IN ISTR ATIO N OF THE CORPORATION 23

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. There was no change in the membership of the Board of Directors during 1974. Mr. Frank Wille, who 

was elected Chairman of the Board on April 1, 1970, continued in 

that capacity throughout 1974. Continuing as Directors were Mr. 

George A. LeMaistre, who took office on August 1, 1973, and Mr. 

James E. Smith, who was sworn in as Comptroller of the Currency 

on July 5, 1973.

Corporation officials, Regional Directors, and Regional Offices 

are listed on pages v and vi.

The Corporation's total employment increased by 167 during

1974 to 2,808 at the end of the year (table 9). Of this increase, 

118 were temporary employees, including clerical workers employed at banks in process of liquidation. Over 72 percent of the 

Corporation's employees were field bank examiners and others assigned to the Regional Offices. The turnover rate for field examiners in 1974 was 11.4 percent compared to 11.2 percent for 1973. 

Among the 182 bank examiners leaving the Corporation's employment during the year were 60 who resigned to accept positions with 

banks, other financial institutions, or other supervisory agencies.

Table 9. NUMBER OF OFFICERS AND EMPLOYEES 

OF THE FEDERAL DEPOSIT INSURANCE CORPORATION, DECEMBER 31, 1973 AND 1974

U nit

Total

Washington

office

Regional and other 

field offices

1974 1973 1974 1973 1974 1973

Total ............................................................... 2,8 0 8 * 2 ,6 4 1 * 775 691 2,033 1,950

D ire c to rs ................................................... 3 3 3 3 0 0

Executive O ffic e s .................................. 39 41 39 41 0 0

Legal D iv is io n ......................................... 78 79 70 70 8 9

Division of Bank Supervision ............ 2,054 1,943 191 121 1,863 1,822

Division of L iq u id a tio n ........................ 233 190 85 83 148 107

Division of Research............................. 91 89 91 89 0 0

O ffice of the C ontroller ...................... 193 190 179 178 14 12

Office o f Management Systems 

and Financial A u d its ...................... 117 106 117 106 0 0

^Includes 261 nonperm anent employees on short term appointm ent or when actually employed in 1974, and 143 in 1973. 

IMonpermanent employees include college students participating in the work-study program, clerical w orkers employed on a 

tem porary basis at banks in process o f liquidation, and other personnel.

FINANCES OF THE CORPORATION

Assets and liabilities. The Corporation's assets totaled $8,178 

million on December 31, 1974 (table 10). Cash and U.S. Government securities, valued at amortized cost plus accrued interest, 

amounted to $5,985 million. Various assets acquired in receivership 

and deposit assumption transactions, including the subrogated 

claims of depositors against closed insured banks and assistance to 

operating insured banks, totaled $2,185 million after allowance of

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Table 10. STATEMENT OF FINANCIAL CONDITION, 

FEDERAL DEPOSIT INSURANCE CORPORATION, 

DECEMBER 31, 19741 

(In thousands)

ASSETS

$ 18,857

U.S. Government obligations:

Securities at am ortized cost (face value $5,881,315; cost $ 5 ,8 6 5 ,9 6 5 ).................

Accrued interest re c e iv a b le ...................................................................................................

$5,874,374

91,868 5,966,242

Assets acquired in receivership and deposit assumption transactions:

Subrogated claims of depositors against closed insured b a n k s ..................................

Net insured balance:; o f depositors in closed insured banks, to be subrogated

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

Equity in assets acqjired under agreements w ith insured banks2 ............................

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

$ 53,644

903

2,113,341

4,609

$2,172,497

Less reserves fo r lo sse s............................................................................................................ 185,743 1,986,754

Notes purchased to facilitate deposit assum ption:

(Crocker N ational Corp., $50,000; Southern B ancorporation, $8,000; 

European-American Bank & T rust Company, $100,000)

Principal ...............................................................................................................................

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

$ 158,000 

3,445 161,445

Assistance to operating insured banks:

Notes purchased:

(Bank of the C om m onwealth, $35,500; U n ity Bank & T rust, $1,500)

Principal..................................................................................................................................

Accrued interest re ce iva b le .............................................................................................

$ 37,000 

1 37,001

Miscellaneous assets ...................................................... 628

Land and office building, less depreciation on building......................................... 6,824

Total a sse ts........................................................................................ $8,177,751

L IA B IL TIES AN D DEPOSIT IN SU R AN C E FUND

Accounts payable and accrued liabilities............................................................... $ 4,494

Earnest money, escrow funds and collections held for o th e rs ................................. 1,630

Accrued annual leave of em ployees...................................................................... 2,979

Due insured banks:

Net assessment income credits available July 1, 1975 (see table 1 2 )..........................

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

$ 285,433 

4,831 290,264

Liabilities incurred in receivership and deposit assumption transactions:

Federal Reserve Bank indebtedness:

Note payable .......................................................................................................................

Accrued interest payable3 ............................................

$1,723,000

30,291 1,753,291

Net insured balances of depositors in closed insured banks-see related asset . . . 903

Total liabilities.................................................. $2,053,561

Deposit insurance fund, net income accumulated since inception (see table 11) ... 6,124,190

Total liabilities and deposit insurance fu n d ........................................... $8,177,751

1 These statements do not includeaccountability fo r the assets and liabilities of the closed insured banks fo r which the Corporation 

acts as receiver or liquidating agent.

2E quity in assets acquired under agreements w ith insured banks increased $1,928 b illio n during calendar year 1974. A p p ro ximately $1,723 billion o f this increase is related to the closing of Franklin National Bank on October 8, 1974.

3Accrued interest payab e of $30.3 m illion represents interest fo r 84 days at the rate of 7.52 percent simple interest per annum 

on the unpaid principal am ount plus $472 thousand of unpaid interest due on Franklin National Bank's indebtedness to the 

Federal Reserve Bank c f New Y ork. This am ount is subject to adjustm ent fo r certain out-of-pocket expenses incurred by the 

C orporation as providec fo r in the Agreement o f Sale.

reserve for losses. Of this total, approximately $1,723 million represents the carrying value to the Corporation of assets acquired 

upon assumption of Franklin National Bank's debt to the Federal

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FINANCES OF THE CORPORATION 25

Reserve Bank of New York, as of the close of business the day 

Franklin National Bank failed. The FDIC's headquarters building in 

Washington, D.C. (which was appraised in 1972 for insurance purposes at approximately $12 million exclusive of land), less depreciation, was valued at $6.8 million. On the same date, the Corporation's liabilities totaled $2,054 million, of which $1,723 million was 

the note payable to the Federal Reserve Bank of New York and 

$290 million represented net assessment credits due to insured 

banks.

The excess of the Corporation's assets over its liabilities constitutes the deposit insurance fund and represents its accumulated 

income or surplus for the period since 1933. This fund, which is the 

Corporation's basic resource for the protection of depositors, 

amounted to $6,124 million at the end of 1974. The Corporation 

also has the authority, which it has never exercised, to borrow up to 

$3 billion from the U.S. Treasury whenever its Board of Directors 

determines that the funds are needed for insurance purposes.

Income and expenses. The Corporation's gross revenues available 

for insurance purposes reached $953 million in 1974 (table 11). Of 

this amount, $587 million was derived from gross assessments payable by insured banks during the year, $357 million from interest

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

FEDERAL DEPOSIT INSURANCE CORPORATION,

YEAR ENDED DECEMBER 31,1974 

(In thousands)

Income from operations:

Deposit insurance assessments:

Assessments earned during 1974 ..............................................

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

$587,322

285,420 $ 301,902

Adjustm ents to assessments earned in prior p e rio d s ......................................................................... 44

Interest on U.S. Government securities.................................................................................................

Discounts earned on U.S. Government securities ..............................................................................

Less adjustm ent to securities in c o m e -p rio r years1..............................................................................

Other in c o m e ...............................................................................................................................................

$ 301,946

350,533

7,115

186

8,634

Total income from operations ........................................ .................... $ 668,042

Operating expenses and losses:

A dm inistrative and operating expenses............................................

Provision fo r insurance lo s s e s ....................................................

Adjustm ents to provisions made in prior p e r io d s ...................................

$ 5,625 

92,238

$ 59,214

97,863

Nonrecoverable insurance expenses incurred in protecting depositors ................. 2,111

Total operating expenses and losse s ......................................... $ 159,188

Net incom e-addition to the deposit insurance fu n d .................................... $ 508,854

Deposit insurance fund-January 1 ,1 9 7 4 ........................................................................... 5,615,336

Deposit insurance fund-Decem ber 31,1974, net income accumulated since inception........... $6,124,190

1The $186 thousand adjustm ent to p rio r years resulted from restatem ent o f income due to : (1) a change in procedures fo r the 

am ortization o f prem ium s and discounts from a m o n th ly to a daily rate, and (2) a change from the "average" m ethod in accounting 

fo r sales o f securities to the FIFO m ethod. These changes were implem ented in conjunction w ith autom ation of the Corporate 

P ortfolio.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

C h a rt E

S O U R C E S A N D A P P LIC A T IO N S OF G R O S S IN C O M E 

FED ERAL D E P O S IT IN S U R A N C E C O R P O R A T IO N , 1 9 7 4

S O U R C E S A P P L IC A T IO N S

$ 9 5 3 .5 m illion

In c o m e fro m

S e c u r itie s

$35 7.5 m illio n

A s s e s s m e n t

C r e d its

$ 2 8 5 .4

m illion

G r o s s

A s s e s s m e n t s

$ 5 8 7 .3 m illio n

A d d e d to

In su ran ce

Fund

$ 5 0 8 .9 m illion

O th e r

In c o m e

$8.7 m illion

\ 

E x p e n se s

an d L o s s e s

$159.2 m illion

income on the Corporation's portfolio of U.S. Government securities, and $9 million from other sources. After deducting the Corporation's expenses totaling $61.1 million, additions to reserves for 

insurance losses of $97.9 million, and $285 million for statutory 

assessment credit, an amount of $509 million was added to the 

deposit insurance fund (chart E).

Additions to reserves for insurance losses were substantially 

higher in 1974 than in 1973, primarily because of the increase of 

$101.7 million in reserves held against assets acquired in the U.S. 

National Bank failure. Total expenses and losses were more than 50 

percent above 1973. Despite this increase, the coverage of expenses 

and losses by the Corporation's gross income was 6.0 times, compared to 8.1 times in 1973. The dollar amount added to the deposit 

insurance fund in 1974, however, was appreciably larger than in

1973.

The basic assessment rate established in 1935 by Federal statute— 1/12 of one percent of total assessable deposits— has not been 

changed; however, legislation enacted in 1950 reduced the effective 

rate of assessments by providing for a credit to be applied against 

forthcoming assessments payable in cash. This credit, set initially at 

60 percent and raised to 66 2/3 percent in 1961, is derived by 

applying the percentage to the gross assessments due in the calendar

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FINANCES OF THE CORPORATION 27

Table 12. DETERMINATION AND DISTRIBUTION OF 

NET ASSESSMENT INCOME,

FEDERAL DEPOSIT INSURANCE CORPORATION, 

YEAR ENDED DECEMBER 31, 1974 

(In thousands)

Determination of net assessment income:

Total assessments th a t became due during the calendar year............................................ $587,322

Less:

A dm inistrative and operating expenses...........................................................................

Net additions to reserve to provide fo r insurance losses:

Provisions applicable to banks assisted in 1974........................................................

A djustm ents to provisions fo r banks assisted in prior y e a rs ................................

$ 5,625 

92,243

$ 59,214 

97,868

Nonrecoverable insurance expenses incurred to protect d e p o s ito rs -n e t............... 2,111

Total deductions ...................................................................................................... $159,193

Net assessment income for 1974 ............................................................................ $428,129

Distribution of net assessment income, December 31,1974:

Net assessment income fo r 1974:

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

66 2/3% credited to insured b a n k s ...................................................................................

$142,710

285,419

T o t a l................................................................................................... $428,129

Allocation of net assessment income credit among insured banks, December 31,1974:

Percentage of 

total assessm ent becoming 

due in 1974

Credit fo r 1974 ............................................................................................................................

Adjustm ents of credits fo r prior y e a rs ...................................................................................

$285,419

- 3 8

48.596%

.006

T o t a l................................................................................................... $285,381 48.590%

year after subtracting the Corporation's administrative and operating expenses and insurance losses and reserves for losses in this 

calendar year. The net assessments received from banks in 1974 

amounted to $302 million, or about 51.4 percent of the gross 

assessments earned by the Corporation, and represented about 1/23 

of one percent of the banks' assessable deposits. The determination 

and allocation of net assessment income in 1974 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, 1974

(In thousands)

Funds provided by: Percent

Net deposit insurance assessments...................................................................................................... $ 301,946 17.1

Income from U.S. Government securities, less am ortized net discounts.................................. 350,532 19.8

M aturities and sales o f U.S. Government s e c u ritie s ...................................................................... 1,035,021 58.5

Collections on assets acquired in receivership and deposit assumption transactions............ 81,989 4.6

Total funds provided................................................................................. $1,769,488 100.0

Funds applied to:

A dm inistrative, operating, and insurance expenses, less miscellaneous c re d its ...................... $ 52,555 3.0

A cquisition of assets in receivership and deposit assumption tra n sa ctio n s............................. 344,367 19.4

Purchase o f U.S. Government securities............................................................................................ 1,348,394 76.2

Decrease in assessment credits due banks.......................................................................................... 8,803 .5

Net changes in other assets and lia b ilitie s .......................................................................................... 15,369 .9

Total funds ap p lie d ................................................................................... $1,769,488 100.0

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Income and the deposit insurance fund. Additions to the deposit 

insurance fund and other tabulated data are shown in table 14. 

Since the beginning of Federal deposit insurance, 87.2 percent of 

the Corporation's net income (after deduction of deposit insurance 

credits in 1950-1974) has been added to the fund (charts F and G).

Total deposits in all insured banks increased about 8.7 percent in

1974, to $833.2 billion at the end of the year. Reflecting the increase in November 1974 in the general limit of deposit insurance

Table 14. INCOME AND EXPENSES, FEDERAL DEPOSIT INSURANCE CORPORATION, 

BY YEiAR, FROM BEGINNING OF OPERATIONS,SEPTEMBER 11,1933,

TO DECEMBER 31, 1974

(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

A dm inistrative

and

operating

expenses

1 9 3 3 - 7 4 .. $7,022.0 $3,760.5 $3,261.5 $897.8 $224.3 $80.6 $592.9 $6,124.2

1974 6K8.1 302.0 366.1 159.2 100.0 59.2 508.9

1973 5(11.0 246.0 315.0 108.2 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

1969 335.8 144.0 191.8 34.5 1.0 33.5 301.3

1968 , 2&5.0 132.4 162.6 29.1 .1 29.0 265.9

1967 .......... 2f;3.0 120.7 142.3 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

1959 136.5 78.6 57.9 12.1 0.2 11.9 124.4

1958 126.8 73.8 53.0 11.6 11.6 115.2

1957 117.3 69.1 48.2 9.7 0.1 9.6 107.6

1956 . 111.9 68.2 43.7 9.4 0.3 9.1 102.5

1955 105.7 66.1 39.6 9.0 0.3 8.7 96.7

1954 , , 99.7 62.4 37.3 7.8 0.1 7.7 91.9

1953 . 94.2 60.2 34.0 7.3 0.1 7.2 86.9

1952 .......... 88.6 57.3 31.3 7.8 0.8 7.0 80.8

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 111.1 122.7 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 H 7 .5 114.4 43.1 9.9 0.1 4.8 5.0 147.6

1946 130.7 107.0 23.7 10.0 0.1 5.8 4.1 120.7

1945 121.0 93.7 27.3 9.4 0.1 5.8 3.5 111.6

1944 99.3 80.9 18.4 9.3 0.1 5.8 3.4 90.0

1943 86.6 70.0 16.6 9.8 0.2 5.8 3.8 76.8

1942 69.1 56.5 12.6 10.1 0.5 5.8 3.8 59.0

1941 . 62.0 51.4 10.6 10.1 0.6 5.8 3.7 51.9

1940 E5.9 46.2 9.7 12.9 3.5 5.8 3.6 43.0

1939 . . E1.2 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

1 For the period from 1950 to 1974, inclusive, figures are net after deducting the portion of net assessment income credited to 

insured banks pursuan: to provisions o f the Federal Deposit Insurance A c t of 1950, as amended. Assessment credits to insured 

banks fo r these years a rio u n t to $3,693 m illion.

2 1 ncludes $11.0 m illio n o f interest and allowable return received on funds advanced to receivership and deposit assumption cases and 

$12 m illio n o f interest on capital notes advanced to facilitate deposit assumption transactions and assistance to open banks.

3 Paid in 1950 and 1951, but allocated among years to w hich it applies. In itia l capital o f $289 m illio n was retired by payments to the 

U.S. Treasury in 1947 end 1948.

4 Assessments collected from members of the tem porary insurance funds w hich became insured under the permanent plan were 

credited to their accounts at the term ination o f the tem porary funds and were applied tow ard paym ent of subsequent assessments 

becoming due under 1he perm anent insurance fund, resulting in no income to the C orporation from assessments during the 

existence of the tem porary insurance funds.

5 Net after deducting the portion o f expenses and losses charged to banks w ithdraw ing from the tem porary insurance funds on June 

30, 1934.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

C h a rt F IN C O M E , E XP E N S E S A N D L O S S E S ,

A N D A D D IT IO N S TO THE D EP O S IT IN S U R A N C E FUN D, 

FED ER AL D E P O S IT IN S U R A N C E C O R P O R A T IO N , 

1 9 5 0 - 1 9 7 4

Millions Millions

of Dollars of Dollars

------------------------------------------------------------------------- E X P E N S ES-300

..*>• A N D L O S S E S

------------------------------- --------------------------- 200

IN C O M E ..........^ - ' ^ A D D E D T O

. . . . . j i - - - ---------- D E P O S IT IN S U R A N C E

-------------------------------------F U N D -----------------------------------------------------100

— I— I— hH— I I 11 I 1 I ■■ I - I - 1— I— I— I— I- f f- I— I- 1- I- I— h - f -

1950 '51 '52 '53 '54 '55 '56 '57 '58 '59 '60 '61 '62 '63 '64 '65 '66 '67 '68 '69 '70 '71 '72 '73 '74

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

from $20,000 to $40,000, and to $100,000 for some State and 

local government deposits, the amount of insured deposits reached 

an estimated total of $520.3 billion on December 31, 1974. The 

latter figure represents an increase of $55 billion from 1973, and in 

relation to insured deposits, the deposit insurance fund declined 

from 1.21 percent to 1.18 percent (table 15). The ratio of the fund 

to total deposits in insured banks, .73 percent, was unchanged from 

1973.

Audit. Thti financial transactions of the Corporation are audited 

annually 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, 1934-1974

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

Insu red 

Total Insured1 deposits

1974 ................... $833,227 $520,309 62.5% $6,124.2 .73% 1.18%

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 3 74,5684 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

1 9 3 8 . . . . ............ 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 

determ ined fro m special reports secured fro m insured banks.

2 December 20, 1963.

3 December 28, 1962.

4 Revised.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
r \

MERGER DECISIONS OF THE CORPORATION

PART TWO

V. J

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANKS IN VO LVED IN ABSORPTIONS APPROVED BY 33

THE FEDERAL DEPOSIT INSURANCE CORPORATION IN 1974

State Town or City Bank Page

Alabama Andalusia Alabama Bank of Andalusia (in

organization; change title to 

Covington County Bank) 

Covington County Bank 

Anderson Alabama Bank of Lauderdale

County (in organization; 

change title to Farmers Bank) 

Farmers Bank 

Bayou La Batre Farmers and Marine Bank

Mobile County Bank (in organization)

Fort Payne Fort Payne Bank

Valley Bank of Fort Payne (in 

organization; change title to 

Fort Payne Bank)

Goodwater Alabama Bank of Goodwater (in

organization; change title to 

C ity Bank of Goodwater)

C ity Bank o f Goodwater 

Guntersville Bank of Guntersville (in organization; change title to Citizens 

Bank of Guntersville)

Citizens Bank of Guntersville 

Hartselle American Bank & Trust Company

Bank of Hartselle (in organization; 

change title to American Bank

& Trust Company)

Lineville Alabama Bank of Linevilie (in

organization; change title to 

C ity Bank of Lineville)

C ity Bank of Lineville 

Roanoke Alabama Bank of Roanoke (in

organization; change title to 

C ity Bank of Roanoke)

C ity Bank of Roanoke 

Selma Alabama Bank of Selma (in organization; change title to Citizens 

Bank & Trust Company) 

Citizens Bank & Trust Company 

Tuskegee Alabama Bank of Tuskegee (in

organization; change title to 

City Bank of Tuskegee)

City Bank of Tuskegee 

California Beverly Hills Ahmanson Bank and Trust Company

California Overseas Bank 

Lakeport Bank of Lake County

New Bank of Lake County (in 

organization; change title to 

Bank of Lake County)

San Francisco Barclays Bank of California

Liberty National Bank 

The Chartered Bank of London

164

164

165

165

165

165

162

162

164

164

163

163

165

165

164

164

164

164

165

165

164

164

144

144

166

166

131

79

79

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

State T ow n o r C ity Bank Page

Santa Barbara The County Bank, Santa Barbara—

Carpinteria 131

Connecticut Deep River Deep River Bank and Trust Company 125

North Branford Community Banking Company 125

Delaware Claymont Claymont Savings and Loan Association 105

Wilmington Bank of Delaware 43

Commercial Trust Company 43

W ilmington Savings Fund Society 105

Georgia Chamblee Peachtree Bank and Trust Company 50

Dalton Dalton State Bank (in organization) 163

Hamilton Bank of Dalton 163

Dublin Citizens and Southern Bank of

Dublin 81

Rentz The Rentz Banking Company 81

Stone Mountain The Citizens Bank of Georgia 50

Hawaii Honolulu FHB Bank (in organization; change

title to First Hawaiian Bank) 164

First Hawaiian Bank 164

Idaho Grangeville Bank of Central Idaho 53

Pocatello IBT, Inc. (in organization) 166

Idaho Bank & Trust Co. 53/

Rexburg Madison State Bank (in organization; change title to Valley Bank)166

Valley Bank 166

Illinois Chicago MBT Bank (in organization;

change title to Madison Bank

and Trust Company) 165

Madison Bank and Trust Company 165

Indiana Middletown Farmer's State Bank (change

title to Farmers State Bank of

Henry County) 97

Mooreland Farmers State Bank 97

West Lebanon Farmers-Central Bank 145

W illiamsport Citizens State Bank 145

Iowa A tlantic First W hitney Bank and Trust 96

Whitney Building Company, Inc. 96

Clear Lake Com m unity State Bank of Clear

Lake 140

Creston Iowa State Savings Bank 139

Cromwell Cromwell State Savings Bank 139

F ort Dodge Union Trust & Savings Bank 159

Harcourt Harcourt Savings Bank 159

Sioux City Farmers Loan and Trust Company 102

The Toy National Bank of Sioux

City 102

Ventura Ventura State Bank 140

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

State Town or City Bank Page

Kentucky Louisville

Maryland Salisbury

Massachusetts Lynn

Michigan Ann A rbor

Clio

Frankenmuth

Hastings

Ionia

Middleville

Midland

Mount Clemens

Newaygo

Oscoda

Owosso

Saginaw

Saline

Southgate

Vassar

Zeeland

Citizens Fidelity Bank and Trust

Company 162

Citizens Fidelity State Banking and 

Trust Company (in organization) 162

The Shoreman's Bank (in organization; change title to Truckers 

and Savings Bank) 165

Truckers and Savings Bank 165

North Shore Bank and Banking

Company 165

North Shore Bank and Trust Company (in organization) 165

Ann A rbor Bank 162

Ann A rbor State Bank (in organization)

The Clio State Bank 

Frankenmuth Bank & Trust Company

The Hastings C ity Bank 

FSB Bank (in organization; change 

title to First Security Bank)

First Security Bank 

Farmers State Bank o f Middleville 

CBT Bank Company (in organization)

Chemical Bank and Trust Company 164 

Bank of Mount Clemens (in organization; change title to M ount 

Clemens Bank)

M ount Clemens Bank 

FSN Bank (in organization)

First State Bank of Newaygo 

OSS Bank (in organization; change 

title to The Oscoda State 

Savings Bank)

The Oscoda State Savings Bank 

OSB Bank (in organization)

The Owosso Savings Bank 

First State Bank of Saginaw 

Manufacturers Bank of Saline (in 

organization; change title to 

Saline Savings Bank)

Saline Savings Bank 

SBTC Bank (in organization)

Security Bank and Trust Company 

The State Bank of Vassar 

First Michigan Bank and Trust Com 

pany

Zeeland State Bank (in organization; 

change title to First Michigan 

Bank and Trust Company) 162

162

55

55

155

164

164

155

164

166

166

166

166

166

166

165

165

67

164

164

162

162

67

162

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

State Tow n or C ity Bank Page

Mississippi Grenada Grenada Bank 111

Grenada Trust and Banking Company 83

Greenwood First National Bank of Greenwood 111

Kosciusko Merchants and Farmers Bank 133

Lena The Bank of Lena 133

Tupelo Bank of Mississippi 83

The Peoples Bank and Trust Company 103

West Point Clay County Bank and Trust Company 103

Missouri St. Louis Central West End Bank 85

City Bank 85

Nebraska North Platte American Security Bank 69

Wallace Citizens Security Bank 69

New Hampshire Berlin Berlin C ity National Bank (change

title to Berlin C ity Bank) 45

C ity Savings Bank of Berlin 45

Colebrook Colebrook Guaranty Savings Bank 146

The Colebrook National Bank

(change title to The First

Colebrook Bank) 146

New York Albany Albany Savings Bank 135

Home Savings Bank of Upstate

New Y ork 57,

Beacon Beacon Savings Bank 148

Buffalo Erie County Savings Bank 63

Cheektowaga Frontier Savings and Loan Association 63

Elmira The Elmira Savings Bank 99

Mechanics Savings Bank of Elmira 48

Fort Edward Fort Edward-Hudson Falls Savings

and Loan Association 57

Groveland Groveland State Bank 138

Hudson Hudson Savings and Loan Association 78

Ithaca Savings Bank of Tompkins County 99

Kingston Heritage Savings Bank 148

New Y ork Bradford Trust Company 137

European-American Bank & Trust

Company 138

Franklin National Bank 137,

Randolph State Bank of Randolph 151

Rochester Marine Midland Bank-Rochester 138

Tarry town Westchester County Savings Bank 142

Troy First Savings and Loan Association

of Troy 135

Troy Co-operative Savings and Loan

Association 94

Tuckahoe Tuckahoe Savings and Loan Association 142

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 37

State Tow n or C ity Bank Page

Waverly Waverly Savings and Loan Association 48

Wei Isville First Trust Union Bank 151

North Carolina Charlotte The Bank of Commerce 114

Raleigh First-Citizens Bank & Trust Company 114

Ramseur The Bank of Coleridge 114

Wilson Branch Banking and Trust Company 164

Wilson County Bank and Trust

Company (in organization;

change title to Branch Banking

and Trust Company) 164

Ohio Bellevue The Union Bank and Savings Company 60

Clyde The Home Savings Building and

Loan Company 60

Columbus Citizens Savings and Loan Company 88

Harrisburg The American Bank o f Central Ohio 88

Wooster The Commercial Banking & Trust

Company 162

The Wooster Banking and Trust

Company (in organization;

change title to The Commercial

Banking & Trust Company) 162

Oklahoma Oklahoma City Northwest Bank 59

Northwest Building Corporation 59

Oregon Milwaukie First State Bank of Oregon 157

Portland Great Western National Bank 157

Pennsylvania Altoona The First National Bank of Altoona 127

Avis The State Bank of Avis 117

Bensalem Township The Neshaminy Valley Bank 153

Jenkintown Industrial Valley Bank and Trust

Company 153

Loganton The Loganton National Bank 117

Muncy Commonwealth Bank and Trust

Company 90

Paradise State Bank of Paradise 118

Plymouth The Plymouth National Bank 121

Reading American Bank and Trust Co. of Pa. 118

Renovo Citizens Bank o f Renovo 90

St. Marys First Laurel Bank 107

Scranton Northeastern Bank of Pennsylvania 121

State College Central Counties Bank 127

Sunbury Susquehanna Valley Bank and

Trust Company 64

Titusville The Pennsylvania Bank and Trust

Company 107

West Hazleton The Miners Bank and Trust Company of West Hazleton, Pa. 123

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

State T ow n or C ity Bank Page

Wilkes-Barre United Penn Bank 123

W illiamsport Northern Central Bank and Trust

Company 64

Rhode Island Providence Old Stone Savings Bank 75

Old Stone Trust Company (change

to Old Stone Bank) 75

South Carolina Greenville Southern Bank and Trust Company 92, 130

Orangeburg American Bank & Trust 130

Prosperity The Bank of Commerce 92

Tennessee Chattanooga Chattanooga State Bank (in organiTexas

zation; change title to Pioneer 

Bank) 165

Pioneer Bank 165

Clarksville First Trust & Savings Bank 163

The State Bank of Clarksville (in 

organization; change title to 

First Trust & Savings Bank) 163 

McEwen The State Bank of McEwen (in

organization; change title to The 

Union Bank) 166

The Union Bank 166

McMinnville Citizens State Bank 163

Hamilton State Bank of McMinnville (in organization; change 

title to Citizens State Bank) 163 

M ount Juliet Bank of M ount Juliet 165

Mount Juliet State Bank (in organization; change title to Bank of 

Mount Juliet) 165

Arlington Arlington Bank and Trust 162

South Street State Bank (in organization; change title to Arlington 

Bank and Trust) 162

Beaumont New Union State Bank of Beaumont

(in organization; change title to 

Union State Bank of Beaumont) 166 

Union State Bank of Beaumont 166 

Coleman Coleman Bank 166

Pecan Street State Bank (in organization; change title to Coleman 

Bank) 166

Corpus Christi Everhart Staples State Bank (in 

organization; change title to 

Parkdale State Bank) 163

Parkdale State Bank 163

Cuero Farmers State Bank & Trust Company 162

New Farmers State Bank & Trust 

Company; (in organization; 

change title to Farmers State 

Bank & Trust Company) 162

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 3 9

State Town or City Bank Page

Deer Park Deer Park Bank 163

New Deer Park Bank (in organization; change title to Deer Park 

Bank) 163

Fort Worth Union Bank of Fort Worth 162

Union Commerce Bank (in organization; change title to Union 

Bank of F ort Worth) 162

Houston Almeda-Genoa Bank 164

American Bank and Trust Company 166 

Cullen Center Bank & Trust 166 

Fairbanks Bank of Houston 163 

Memorial Bank 163 

Meyerland Bank 165 

New Almeda-Genoa Bank (in

organization) 164

New American Bank and Trust Company (in organization; change 

title to American Bank and 

Trust Company) 166

New Cullen Center Bank & Trust 

(in organization; change title to 

Cullen Center Bank & Trust) 166 

New Fairbanks Bank of Houston (in 

organization; change title to 

Fairbanks Bank of Houston) 163 

New Memorial Bank (in organization; change title to Memorial 

Bank) 163

New Meyerland Bank (in organization) 165 

New Northline State Bank (in organization) 163 

Northline State Bank 

Citizens Bank 163 

New Citizens Bank (in organization;

change title to Citizens Bank) 163 

New Kirbyvilie State Bank of 

Kirbyville (in organization; 

change title to The Kirbyville 

State Bank of Kirbyville) 166

The Kirbyville State Bank of

Kirbyville 166

New Braunfels First Guaranty State Bank (in

organization) 164, 165

The Guaranty State Bank of New

Braunfels 164, 165

Runge Community State Bank 162

New C om m unity State Bank (in 

organization; change title to 

Com m unity State Bank) 162

Kilgore

Kirbyville

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

State Town or City Bank Page

Utah

Verm ont

Virginia

Washington

Wisconsin

San A ntonio

Seabrook

Smiley

Spring

Westhoff

Ogden

Orem

Hyde Park 

Saint Albans

Accomack County

Gloucester

Gore

lone

Spokane

Milwaukee

Highland Commerce Bank (in 

organization; change title to 

Highland Park State Bank) 164 

Highland Park State Bank 164

Clear Creek Bank 163

New Clear Creek Bank (in organization; change title to Clear 

Creek Bank) 163

New Smiley State Bank (in organization; change title to Smiley 

State Bank) 162

Smiley State Bank 162

New Security Bank (in organization; change title to Security 

Bank) 167

Security Bank 167

Home State Bank 163

New Home State Bank (in organization; change title to Home 

State Bank) 163

Commercial Security Bank 73

Orem State Bank 73

Lamoille County Bank 41

Franklin Bank (change title to

Franklin-Lamoille Bank) 41

Bank of Virginia-Eastern Shore (in 

organization) 163

Hailwood Branch of Bank of

Virginia-Central 163

Bank of Gloucester 166

United Virginia Bank of

Gloucester (in organization) 166 

Bank of Gore, Inc. (in organization; 

change title to Western Frederick 

Bank) 164

Western Frederick Bank 164

lone State Bank 

American Commercial Bank

Heritage Bank of Milwaukee 

Jacobus State Bank (in organization; change title to Heritage 

Bank of Milwaukee)

71

71

165

165

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
41

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Resources

(in

thousands 

o f dollars)

Banking O ffices

In

operation

To be 

operated

Franklin Bank

St. Albans, Verm ont 

(change title to F ranklin-Lam oille 

Bank)

44,741 4 7

to merge with

Lamoille County Bank

Hyde Park

19,430 3

Summary report by A ttorney General, October 31, 1973

The nearest offices of the parties are separated by a distance of about 32 

miles; thus, it does not appear that the proposed acquisition would eliminate 

substantial existing com petition. Although Lamoille County Bank ranks first 

among the four banks w ith offices in Lamoille County, the effects of this 

proposed transaction on potential com petition are diminished by the existence 

of other significant potential entrants.

Accordingly, we conclude that the proposed transaction would not have a 

substantial competitive impact.

Basis for Corporation approval, January 14, 1974

Franklin Bank, St. Albans, Vermont, a State nonmember insured bank w ith 

total resources of $44,741,000 and total I PC deposits of $38,655,000, has 

applied, pursuant to Section 18(c) and other provisions of the Federal Deposit 

Insurance A ct, fo r the Corporation's prior consent to merge w ith Lamoille 

County Bank, Hyde Park, Vermont, having total resources of $19,430,000 and 

total I PC deposits of $16,282,000. The banks would merge under the charter 

of Franklin Bank and w ith the title Franklin-Lamoille Bank. The three offices 

of Lamoille County Bank, as an incident to the merger, would become 

branches of the resulting bank, increasing to seven the total number of its 

offices.

Competition. Franklin Bank operates its four offices in northwestern Vermont. Its primary trade area comprises the counties o f Franklin and Grand Isle 

and includes an adjacent portion of northwestern Chittenden County. The 

total population o f this area is estimated at 39,500, having increased some 14.3 

percent during the 1960s in close parallel to the statewide increase of 14 

percent during the same decade. Agriculture, although o f decreasing economic 

importance in recent years, continues to lend support to the area, supplemented by tourism and a scattering of light industry. Many residents of southern Franklin County travel southward to the Burlington-Essex Junction area 

for employment. Unemployment in the St. Albans area over recent years has 

been reported at rates varying from 7 to 10 percent, and 1972 median household incomes in Franklin County were 3.3 percent below the State average

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

($7,890). Franklin Bank is one of five commercial banks competing in Franklin 

County, holding the largest share of their local I PC deposits (47.9 percent). 

Two of the five banks competing in Franklin County are the State's tw o largest 

banks, both headquartered in Burlington. The smaller of these banks is approximately four times the deposit size o f Franklin Bank.

Lamoille County Bank has its main office in Hyde Park and two branches in 

Stowe and Morristown, all in Lamoille County (population 13,309, up 20.7 

percent since 1960). Lamoille County is situated immediately eastward of 

Franklin and Chittenden Counties. Its economy is prim arily agricultural and 

residential, although in the mountainous southwestern portion of the county, 

skiing and summer tourism are of major economic importance. 1972 income 

levels of the county were approximately 10 percent below the State household 

median income. Lamoille County Bank, one of four banks w ith offices in the 

county, holds 43 percent of the total commercial bank I PC deposits in 

Lamoille County. A nearby competitor, Union Savings Bank and Trust Company, headquartered in Morrisville, holds approximately the same percentage 

share of such deposits.

Franklin Banc and Lamoille County Bank operate in separate, although 

adjacent, banking markets. Their closest offices, Franklin Bank's office in 

Milton and Lamoille County Bank's main office, are separated by some 32 

road-miles of sparsely populated terrain, as well as the Green Mountain range. 

Little vehicular travel is evident between St. Albans and Hyde Park, and reasonably convenient banking alternatives exist fo r residents in St. Albans, the M ilton area, and the Hyde Park area. It appears that no significant existing competition between the tw o banks would be eliminated by their proposed merger.

Although V e rn o n t law permits statewide branching, there is little potential 

for increased com petition in the future between Franklin Bank and Lamoille 

County Bank through de novo branching. Lamoille County Bank has confined 

its modest office expansion to points w ithin 10 miles of its main office and it 

lacks the managerial resources and incentive to branch de novo beyond the 

confines of Lamoille County into the area served by Franklin Bank. For its 

part, Franklin Bank would not likely find Lamoille County attractive fo r de

novo entry at the present time, since income levels are 10 percent below the 

statewide average; each banking office presently serves an average of 1,664 

people, as compared w ith an average of 3,043 people per banking office statewide; and each com m unity of any size in Lamoille County, the largest of which 

is Morristown (population 4,052), already has commercial bank facilities. 

Moreover, to the extent future growth might warrant additional de novo facilities, there are larger and more likely entrants than Franklin Bank, such as the 

State's three Burlington-based banks. Accordingly, any elimination of potential 

com petition between Lamoille County Bank and Franklin Bank which might 

result from their proposed merger is viewed as not significant competitively.

Statewide, Franklin Bank controls only 3.8 percent of the total IPC deposits 

held by all 146 offices of the 38 commercial banks represented therein— a share 

that would be increased by the proposed merger to 5.4 percent. It appears 

unlikely that the transaction would have an adverse competitive impact upon 

the structure of commercial banking in this relevant potential market.

Under the circumstances presented, the Board of Directors is o f the opinion 

that the proposed merger would not, in any section of the country, substantially lessen com petition, tend to create a monopoly, or in any other manner 

Digitized for FRASER 

be in restraint of trade.

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 43

Financial and Managerial Resources; Future Prospects. Both Franklin Bank 

and Lamoille County Bank have adequate financial and managerial resources 

for their present operations. 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 the resulting bank w ith an unsecured lending lim it of 

$630,000. There are few borrowers in the market, however, whose credit requirements approach this amount. Services of Franklin Bank's more sophisticated trust department would be offered at the present locations of Lamoille 

County Bank. Demand fo r such services w ithin Lamoille County, however, 

appears to be lim ited. While there is little to suggest that banking needs are not 

being satisfactorily served by each of the tw o banks in their respective local 

markets at the present time, their merger would produce a bank better able to 

compete w ith Vermont's five largest commercial banks, three of which are 

headquartered in northern Verm ont and tw o of which presently compete in 

Franklin County.

Based on the foregoing, the Board o f Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands 

o f d o lla rs)

B a n k in g O ffic e s

I n

o p e ra tio n

T o be 

ope ra te d

Bank of Delaware

W ilmington, Delaware

379,125 25 26

to merge with

Commercial Trust Company

W ilmington

3,607 1

Summary report by A ttorney General, December 21, 1973

Commercial banking in W ilmington and in New Castle County is highly 

concentrated; the four largest of the eight banks in the county hold approximately 96 percent of total county deposits. Applicant, the second largest bank 

in the county, holds slightly more than 23 percent o f county deposits, while 

Bank's share of the New Castle market is less than 1 percent. Applicant and 

Bank are direct competitors; their headquarters are located about tw o blocks 

apart in dow ntown Wilmington.

The proposed merger would eliminate direct com petition and slightly increase concentration in commercial banking in Wilmington.

Basis for Corporation approval, January 29, 1974

Bank of Delaware, W ilmington, Delaware (total resources $379,125,000; 

total IPC deposits $304,896,000), 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 merge w ith Commercial 

Trust Company, W ilmington, Delaware ("Com m ercial") (total resources 

$3,607,000; total IPC deposits $2,543,000), under the charter and title of

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Bank of Delaware. The sole office of Commercial, as an incident to this merger, 

would become a branch of Bank of Delaware, increasing to 27 the number of 

its authorized offices.

Competition. Commercial has its sole office on the fringe of downtown 

W ilmington immediately adjacent to a largely vacant redevelopment area which 

was cleared of residents and businesses some years ago. The bank's deposits are 

trending downward and after 53 years of operation, it presently holds only 

$2.5 m illion in IPC deposits (or 0.4 percent of the IPC deposits held by all 

downtown W ilmington commercial bank offices). Commerciars only active 

officer is 74 years old and wishes to retire, and efforts to obtain a satisfactory 

replacement have been unsuccessful. It has a loan-to-deposit ratio o f less than 

35 percent, and relatively low profita b ility compared to other Delaware banks. 

Commercial is obviously an ineffective com petitor in its market.

Bank of Delaware is the second largest commercial bank in the State w ith 

21.7 percent of its total commercial bank IPC deposits, and the second largest 

such bank in the W ilmington market. In both areas, Bank of Delaware substantially lags behird the $456-million-IPC-deposit W ilmington Trust Company. 

While commercial banking in the relatively small State of Delaware (1970 

population 5 4 8 ,104) and in the Wilmington market is presently dominated by 

Delaware's four largest commercial banks, testamentary restrictions on almost 

47 percent of Commerciars stock effectively preclude Commerciars sale except to one of these four banks. Only two o f these banks expressed an interest 

in acquiring Commercial, however, and there appears to be no compelling 

reason to prefer the other of these banks to Bank of Delaware as a merger 

partner.

In any event, while some relatively insignificant com petition between the 

tw o banks in downtown W ilmington would be eliminated by their proposed 

merger, acquisition of Commerciars limited resources by Bank of Delaware 

would have no perceptible effect on the structure o f commercial bank competition either in the W ilmington market or in the State as a whole. Following 

the merger, a total of 9 offices of 5 other commercial banks would remain 

available to the public in downtown W ilmington, and Delaware as a whole 

would continue to have 111 offices of 17 other commercial banks.

The Board of Directors has concluded, under the circumstances presented, 

that the proposed merger would not, in any section of the country, substantially lessen com petition, tend to create a m onopoly, or in any other manner 

be in restraint o f trade.

Financial and Managerial Resources; Future Prospects. Financial resources 

of both proponents are adequate, but the age of present management at Commercial presents an immediate succession problem for that institution. Bank of 

Delaware has capable management and the proposed merger would resolve 

Commerciars problem. The future prospects of the resulting bank are favorable.

Convenience and Needs o f the Community to be Served. Customers of 

Commercial would be offered broader banking services by one of the State's 

major commercial banks. Commercial's present banking quarters would be 

modernized while three alternative offices of the resulting bank would be 

conveniently available w ithin the local market to all Commercial customers. 

Their regular savings deposits would earn interest at 5 percent per annum, 

increased from the present 4.5 percent annual rate, and the greater variety of

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 45

certificates of deposit to be made available would bear the maximum allowable 

interest rates.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources 

(in

B a n kin g O ffic e s

th o u san d s 

o f d o lla rs )

I n

o p e ra tio n

T o be 

ope ra te d

Berlin City National Bank

Berlin, New Hampshire 

(change title to Berlin C ity Bank)

6,898 1 1

to purchase the assets and assume the deposit

liabilities o f

City Savings Bank of Berlin

Berlin

26,656 1

Summary report by A ttorney General, August 15, 1973

The tw o banks, although located in the same building, do not offer comparable services. Thus, it does not appear that the proposed merger would 

eliminate any significant existing com petition.

In view of the new legislation prohibiting the type of relationship these two 

banks have enjoyed in the past, it could be expected that absent the proposed 

merger both would expand their services w ithin permissible lim its, resulting in 

competition between them. If management succession problems prevent City 

Bank from remaining independent, it could join w ith other banks elsewhere in 

the State as part of a bank holding company. Thus, the merger would eliminate 

potential com petition between the banks.

In addition, the merger would entrench the leading position which City 

Savings enjoys among the financial institutions in the Berlin area (which includes the nearby town of Gorham). It is the largest of three savings banks, 

three commercial banks, and one cooperative bank in the area. Its share of the 

total deposits of all the financial institutions in the area would increase from 

34.9 percent to 43.8 percent as a result of the merger. Factors which lim it 

these adverse effects are the relatively large number of banks compared to total 

population in the area and the current difficulties in the economy o f the area.

We conclude that the proposed merger would eliminate some potential competition.

Basis fo r Corporation approval, January 29, 1974

Berlin City National Bank, Berlin, New Hampshire ("C ity N ational")(total 

resources $6,898,000; total I PC deposits $4,247,000), has applied, pursuant to 

Section 18(c) and other provisions of the Federal Deposit Insurance A ct, for 

the Corporation's prior consent to purchase the assets of, and assume the 

liability to pay deposits made in, City Savings Bank of Berlin, Berlin, New

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Hampshire ("C ity Savings")(total resources $26,656,000; total IPC deposits 

$24,664,000). Both banks share quarters in a single location and the resulting 

bank would operate from that office. Prior to consummation of the transaction, City National would convert to a State nonmember insured bank under 

the title "Berlin City Bank."

Competition. City National ranks 53rd among New Hampshire's 73 commercial banks, w ith 0.4 percent of all commercial bank deposits in the State. 

Its only office, which it shares w ith City Savings, is located in the city of Berlin 

(population 15,256) in the northernmost portion of New Hampshire in Coos 

County (population 34,291).

C ity Savings ranks 23rd among the State's 36 mutual savings banks (including 6 guaranty savings banks), w ith 1.6 percent of their total deposits. City 

Savings shares a single lobby and various overhead and operating expenses w ith 

C ity National. In addition, the tw o banks had interlocking directors, trustees, 

and officers prior to July 1, 1973, when State legislation became effective 

requiring separate managements fo r mutual savings banks and commercial 

banks. On that date, management was allocated to either City National or City 

Savings, pending the outcome of this reorganization proposal which was initiated by the tw o banks in December 1971.

The area in which the competitive effects of the proposed merger would be 

most direct and immediate is determined largely by the local topography in the 

vicinity of the city of Berlin. The Berlin market is contained w holly w ithin 

Coos County and extends approximately 10 miles south and west to the White 

Mountains, 8 miles east to the Maine border, and as far as 20 miles north into 

more sparsely settled, unbanked areas. The Berlin market appears to be relatively unattractive when compared to others, particularly in the southern portion of New Hampshire. This market had a 1970 population of about 20,000 

which represents a 10-year decline of about 11 percent from its 1960 level. The 

population of Berlin city and Coos County declined 14.4 percent and 7.7 

percent, respectively, during this same period. Coos County is the only one of 

New Hampshire's 10 counties that failed to record at least a 10-percent gain in 

population during the 1960s. During this time the State as a whole grew by

21.5 percent. Median household income in 1972 fo r Coos County was $7,339, 

which was about 15 percent below the statewide median of $8,663, and the 

second lowest in New Hampshire. The market's economy is based upon various 

small- and medium-sized industries. The largest employer, a paper manufacturer, has reduced its w ork force to 2,000, about half of what it was 10 

years ago. Unemployment is relatively high, and there appears to be little 

prospect of reversing current economic trends.

Three commercial banks, tw o mutual savings banks, and one cooperative 

bank serve this local banking market. City National holds about 63.8 percent 

of the market's IPC demand deposits (or $4.2 m illion out of a total of $6.7 

m illion), and City Savings holds about 48.0 percent of their total time and 

savings deposits (or $24.6 m illion out of a total of $51.3 m illion). I n terms of 

total IPC deposits of $58.0 m illion in the market, City National and City 

Savings combined would control about 49.9 percent, far in excess o f the 19.5

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 47

percent held by the second largest institution. Moreover, there is no bank 

w ithin the statutory branching lim it of 15 miles of the market's boundaries 

whose overall size would approach that of the resulting bank.

Because of their previous interlocking management, C ity National and C ity 

Savings offered virtually no overlapping services. C ity National had no time or

savings deposits and solicited no real estate loans, while City Savings did not 

offer consumer or business loans. Prior to July 1, in other words, the two 

institutions did not compete fo r comparable services and were considered by 

the public at large as one institution.

While the same is true today, City National and City Savings have had 

technically independent managements since July 1, and absent this proposal, 

the tw o institutions could be expected to remain independent in the future. 

Past associations might restrict com petition in the immediate future, but over 

the longer run, the tw o institutions could become much more significant competitors if each were to offer all the services allowed them by applicable law. 

This aspect of the proposal receives additional significance in view of the 

likelihood that NOW accounts w ill encourage increased deposit com petition 

between th rift institutions and commercial banks in New Hampshire in the 

future.

There are, however, im portant factors relating to the characteristics of the 

Berlin market which mitigate the possible adverse competitive effects which 

might arise in the future from consummation of this proposal. Specifically, in 

order for both City Savings and City National, as well as other institutions 

presently in the market, to remain and develop as viable and effective competitors, there must be a reasonable prospect that the Berlin market would 

support their continued existence as independent competitors. The Corporation does not feel that such a finding can be made in this case. The Berlin 

market has experienced declining population, declining economic activity, and 

below-average income levels at a time when other portions o f the State have 

been growing. It is a relatively small banking market in terms of both population (about 20,000 people) and deposit potential ($58.0 m illion in total IPC 

deposits). Moreover, it lacks significant prospects fo r future expansion and 

industrial growth. A ll of this indicates a market in which a desirable level of 

deposit growth and profitability would be d iffic u lt fo r depository institutions 

to maintain if City National and City Savings continued to operate separately 

and were to expand into activities and services they presently do not offer. It is 

also relevant that if the proposed transaction is consummated, the 20,000 

people in the Berlin market would continue to have 5 separate institutions 

competing for their time and savings deposits, or one for each 4,000 

people.

It is the Corporation's view, under these facts, that the elim ination of future 

potential com petition between City National and City Savings and the increase 

in deposit concentration which their consolidation would effect is not as competitively adverse or significant as such factors might be in a different local 

market w ithin New Hampshire. Under these circumstances, the Board of Directors is of the opinion that the proposed acquisition would not, in any section

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

of the country, substantially lessen com petition, tend to create a monopoly, or 

in any other m anner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. City National and 

City Savings have satisfactory financial and managerial resources under their 

present operational arrangement, as would the resulting bank.

Initially there may be a reduction in the resulting bank's savings and time 

accounts since by regulation it would not be able to pay the maximum rates of 

interest allowed mutual savings banks on similar amounts. However, the deposit attrition may be relatively slight in view of the interest which present 

depositors o f City Savings would have, as stockholders, in the success of the 

resulting bank. The future prospects of the resulting bank are considered satisfactory.

Convenience and Needs o f the Community to be Served. The proposed 

transaction would have little effect on the convenience and needs of the Berlin 

market. The resulting bank would not offer any services not presently available 

in the market, but the lending lim it of the resulting bank would be approximately $150,000, more than three times City National's present lim it and 

larger than any other commercial bank loan lim it in the market. Conceivably 

this and more vigorous commercial lending efforts could help to stimulate the 

declining local economy.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted, contingent upon C ity National's conversion to 

a State nonmember insured bank.

Resources

(in

thousands 

o f d o lla rs )

B a n kin g O ffic e s

I n

o p e ra tio n

T o be 

o pe ra te d

Mechanics Savings Bank of Elmira

Elmira, New York

27,295 4 5

to merge with

Waverly Savings and Loan Association

Waverly

5,900 1

Summary report by A ttorney General, November 30, 1973 

Waverly Savings' single office is located about 17 miles east of Mechanics' 

Elmira headquarters. Elmira and Waverly are linked by Route 17, w ith both 

cities expanding along the Route 17 "co rrid o r" that presently separates the 

tw o communities. Although there may be some overlap between the service 

areas of the parties, it does not appear that the proposed merger w ill eliminate 

substantial existing com petition. And while Mechanics could expand de novo

into the area served by Waverly Savings, the latter's modest size coupled w ith 

the existence o f other potential entrants diminish the effect of the merger on 

potential com petition.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 49

Therefore, we conclude that the proposed transaction would not have a 

substantial competitive impact.

Basis fo r Corporation approval, January 29, 1974

Mechanics Savings Bank o f Elmira, Elmira, New York ("Mechanics"), an 

insured mutual savings bank w ith total resources o f $27,295,000 and total 

deposits of $25,728,000, has applied, pursuant to Section 18(c) and other 

provisions o f the Federal Deposit Insurance Act, fo r the Corporation's prior 

consent to merge w ith Waverly Savings and Loan Association, Waverly, New 

York ("Waverly S & L "), a federally insured savings and loan association w ith 

total resources of $5,900,000 and total deposits of $5,149,000. The institutions would merge under the charter o f Mechanics and w ith the title Mechanics 

Savings Bank. As an incident to the merger, the sole office of Waverly S&L 

would become a branch o f the resulting bank, increasing the number o f its 

offices to five.

Competition. Mechanics has its main office and tw o branches in Elmira 

(1970 population 39,945, down 14.1 percent since 1960) and one branch in 

the town of Big Flats (1970 population 6,837, up 86.5 percent since 1960), 

about 9 miles northwest of the main office. Elmira is centrally located in 

Chemung County (population 101,537), which is in south central New York 

State and forms a portion of the border w ith Pennsylvania. Waverly S&L has its 

only office in the village of Waverly, a com m unity of 5,261 persons, some 17 

miles southeast of Elmira, in the extreme southwest corner o f Tioga County. 

Tioga County is immediately to the east of Chemung County and also borders 

Pennsylvania. Waverly S&L's only office is only 100 feet from the Pennsylvania 

line.

The Mechanics offices closest to Waverly are 17 miles away, but the two 

areas are connected by a good four-lane highway, and there is some commutation to Elmira fo r employment. The primary service areas of the tw o institutions appear to overlap slightly, but the volume of business each draws from 

the area of overlap is modest and the amounts involved are not considered 

significant relative to the total deposit or loan business in the area. In the 

relevant banking market, which would include most of Chemung and Tioga 

Counties plus a number of communities in Bradford County, Pennsylvania, 

Mechanics holds 10.7 percent of all th rift institution deposits and Waverly S&L 

only 2.1 percent. Nine other th rift institutions (i.e., two mutual savings banks 

and seven savings and loan associations) also compete in this market, including 

the $69-m illion-deposit Elmira Savings Bank and three savings and loan associations which also exceed $25 m illion in total deposits. The proposed merger 

would not appear to eliminate any significant amount of existing com petition 

between Mechanics and Waverly S&L, and would not appear to have any 

significant effect in the th rift industry structure w ithin the market.

As to the possibility of increased competition in the future between Mechanics and Waverly S&L through de novo branching, the latter is a small 

institution w ith limited financial and managerial resources which has never 

attempted to branch de novo in its 70 years of existence. Mechanics might find

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Tioga County attractive for future de novo branching, but there are larger 

th rift institutions which are also potential entrants, and Waverly S&L is one of 

the smaller th rift institutions in the immediate Waverly area. Any loss of potential com petition between the tw o institutions thus appears to be com petitively 

insignificant.

Within the Seventh Banking District, which is the widest geographic area 

w ithin which mutual savings banks may presently branch or merge under New 

York law, Mechanics is the 10th largest of 15 th rift institutions in terms of 

total resources and Waverly S&L is the 14th largest, w ith 3.1 and 0.7 percent, 

respectively, of the district-wide totals at year-end 1972. The resulting institution would be the ninth largest of 14 such institutions w ith 3.8 percent of all 

th rift institution assets in the district, far outdistanced by the 4 largest th rift 

institutions, ranging from the $301-m illion Binghamton Savings Bank (36.3 

percent o f the total assets) to the $70-m illion Elmira Savings Bank (8.4 percent 

of the total assets).

Based on the foregoing, the Board of Directors has concluded that the 

proposed merger would not, in any section of the country, substantially lessen 

com petition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Mechanics and the 

resulting bank have satisfactory prospects for the future. Waverly S&L has 

satisfactory financial resources, but an impending management succession 

problem. Mechanics and the resulting bank would have adequate managerial 

and financial resources.

Convenience and Needs o f the Community to be Served. Customers of 

Waverly S&L and residents of the local Waverly area should benefit from the 

increased mortgage lending capability of the resulting bank, more liberal terms 

on mortgage loans, greater emphasis on V A mortgages, a wider range of deposit 

instruments, and an on-line data processing system. Competition w ith th rift 

institutions directly across the border in Pennsylvania should be stimulated.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

R esources

(in

thousands 

o f d o lla rs )

B a n kin g O ffic e s

I n

o p e ra tio n

T o be 

o pe ra te d

Peachtree Bank and Trust Company

Chamblee, Georgia

42,060 6 9

to merge with

The Citizens Bank of Georgia

Stone Mountain

13,388 3

Summary report by A ttorney General, November 30, 1973

Peachtree Bank's offices are clustered in the northern part of De Kalb 

County, while Citizens Bank's offices are located in the eastern portion of the

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 51

county. The head offices of the tw o banks, however, are only about 13 miles 

apart, and the closest offices are about 10 miles apart. The approved but 

unopened offices of both banks, located in the southern portion o f De Kalb 

County, are only about 4 miles apart. Thus, while the banks do not operate in 

close proxim ity to each other, it appears that there is some potential for 

increased com petition between them which would be eliminated by the merger.

Twenty-one commercial banks presently operate in De Kalb County. Peachtree Bank and Citizens Bank are not among the largest, holding only 6.7 

percent and 2.2 percent, respectively, of total county deposits on June 30,

1972. The resulting bank would be one of the largest banks headquartered in 

De Kalb County outside Atlanta, but would control only 8.9 percent of total 

county deposits, the leaders being the much larger Atlanta-based institutions. 

This consolidation of tw o small banks which were form erly "a ffilia te d " w ith 

large Atlanta banking organizations may well give the resulting organization the 

capability to compete more vigorously w ith the large Atlanta institutions 

which now dominate De Kalb County. In view of these facts, and since only a 

minimal amount of existing com petition would be eliminated, we conclude 

that this proposed transaction would not have an adverse competitive effect.

Basis for Corporation approval, February 8, 1974

Peachtree Bank and Trust Company, Chamblee, Georgia ("Peachtree"), a 

State nonmember insured bank w ith total resources of $42,060,000 and total 

IPC deposits of $29,815,000, has applied, pursuant to Section 18(c) and other 

provisions of the Federal Deposit Insurance Act, for the Corporation's prior 

consent to merge w ith The Citizens Bank of Georgia, Stone Mountain, Georgia 

("C itizens"), which has total resources of $13,388,000 and total IPC deposits 

of $10,172,000. The banks would merge under the charter and title of Peachtree and, as an incident to the merger, the three approved offices of Citizens 

would become branches of the resulting bank.

Competition. Peachtree is the seventh largest commercial bank in De Kalb 

County, w ith 6.3 percent of the total IPC deposits held by the 21 commercial 

banks represented therein. It serves northern De Kalb County w ith five offices 

and has recently established its sixth office in the county's central-southern 

area. Originally sponsored in 1960 by Trust Company of Georgia, Peachtree 

now has no holding company affiliation. Citizens, w ith 2.2 percent of De Kalb 

County commercial IPC deposits, is the 14th largest bank in this market and 

was established in 1957. It operates its main office in the city of Stone Mountain (population 1,899) and one branch in an unincorporated area some 2.8 

road-miles west of its main office.* A prior affiliation w ith the Citizens and 

Southern holding company system was severed in December 1970. Citizens is 

very much oriented to retail banking business, drawing most of it from a radius 

w ithin 5 road-miles of its main office, in central-eastern De Kalb County.

Both banks serve areas which are, in the main, rapidly growing residential 

suburbs of the city of Atlanta, although De Kalb County is also one of the

*C itiz e n s has th e necessary a pp ro va ls to establish an a d d itio n a l b ran ch in an u n in c o rp o rated area 5.3 road m iles s o u th w e s t o f its m ain o ffic e .

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

more im p o rta rt industrial areas o f the State. The population of De Kalb 

County grew by 61.8 percent during the decade 1960— 1970 to a total of 

415,387, w ith much of the increase having occurred in unincorporated areas of 

the county. De Kalb County is part of the Atlanta SMSA, a 15-county region 

of growing affluence, industrialization, and economic activity. Its 1970 population was 1,597,816, up 36.7 percent over 1960, w ith almost two-thirds of the 

total living in Fulton and De Kalb Counties. Banking activity throughout the 

SMSA is dominated by the four largest Atlanta-based banking systems. Peachtree and Citizens together have only 1.0 percent of total commercial bank IPC 

deposits in the SMSA. De Kalb County alone has 82 offices of 17 different 

commercial banking systems. The 4 largest banking organizations each hold 

between 10.6 percent and 37.7 percent (all C & S affiliates) of total De Kalb 

County commercial bank IPC deposits, controlling in the aggregate 77.3 percent of such deposits and 54 offices.

Peachtree's cffice closest to Citizens is some 8.5 miles south of the latter's 

established branch. Offices of five other commercial banks intervene and serve 

to minimize com petition between the participants. The insubstantial volume of 

business which each draws from areas directly served by the other and the 

relatively small shares of De Kalb County and Atlanta SMSA bank deposits 

which each bank holds indicate that the proposed merger would eliminate no 

significant existing com petition between them.

Both banks may legally branch throughout rapidly growing De Kalb County. Citizens has limited resources for this purpose, however, and both banks 

would face keen com petition from the four major banking organizations fo r 

the attractive and available de novo branch sites in De Kalb County. The 

elimination of some residual potential for increased com petition between 

Peachtree and C tizens through de novo branching in the future appears to have 

little competitive significance in view of the existing commercial bank structure 

of De Kalb C o jn ty and the likelihood that the resulting bank would be a 

stronger com petitor for all purposes, including the establishment of de novo

branches, than either Peachtree or Citizens separately.

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 

com petition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Both banks have 

adequate financial and managerial resources fo r the business they presently 

conduct. These resources for the resulting bank would likewise be adequate. 

Both banks also have favorable future prospects, as would the resulting bank.

Convenience and Needs o f the Community to be Served. The merger would 

make available to Citizens' customers the services of an institution whose 

higher lending limits (secured, $600,000 rather than $160,000; unsecured, 

$380,000 rather than $80,000) and more aggressive management should serve 

to stimulate com petition w ithin the market. Four-year consumer certificates at 

the maximum rate of interest allowed by current regulations would be offered, 

as well as more significant commercial lending capabilities. For De Kalb County residents and businessmen generally, the increased stature of the resulting 

bank should enable it to compete more effectively w ith the largest banks in the 

county w ith attendant benefits to all banking customers.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 53

R esources 

(in 

thousands 

o f d o lla rs)

B a n kin g O ffic e s

1 n

o p e ra tio n

T o be 

o pe ra te d

Idaho Bank & Trust Co.

Pocatello, Idaho

166,399 13 16

to acquire the assets and assume

the deposit liabilities o f

Bank of Central Idaho

Grangeville

15,474 3

Summary report by A ttorney General, January 29, 1974 

The nearest offices o f Idaho Bank and Central Bank are 70 miles apart. The 

proposed acquisition would eliminate only a limited amount of existing competition.

Central Bank, w ith 38 percent of county deposits as o f December 31, 1972, 

is the largest o f the three banks operating in Idaho County. Idaho Bank, the 

fourth largest of the 23 banks in the State of Idaho, is thus one of a small 

number of significant potential entrants into Idaho County. County population, however, declined by 5 percent from 1960 to 1970 to less than 13,000. 

Thus, the area may not be particularly attractive for de novo entry.

Idaho banking is highly concentrated. A t the end of 1971 the State's four 

largest banks held approximately 85 percent of statewide commercial bank 

deposits. Additional acquisitions by these largest banks may tend to prevent 

deconcentration of banking in the State by eliminating potential elements in 

new regional or statewide organizations.

Basis fo r Corporation approval, February 14, 1974 

Idaho Bank & Trust Co., Pocatello, Idaho ("Idaho Bank"), a State nonmember insured bank w ith total resources of $166,399,000 and total I PC 

deposits of $120,829,000, has applied, pursuant to Section 18(c) and other 

provisions of the Federal Deposit Insurance Act, fo r the Corporation's prior 

consent to acquire the assets of, and assume the liability to pay deposits made 

in, Bank of Central Idaho, Grangeville, Idaho ("C entral"), a State nonmember 

insured bank w ith total resources of $15,474,000 and total IPC deposits of 

$12,183,000. The 3 offices of Central would be operated as branches of Idaho 

Bank, increasing the number of its authorized offices to 17.

Competition. Idaho Bank has 14 authorized offices in 9 of the 44 counties 

in Idaho, 10 o f which have been established de novo over the years. Most of 

these offices are concentrated in the more populous southeast section of the 

State, although Idaho Bank is represented in all the major population centers. 

Idaho Bank has no office, however, in Idaho County where all o f Central's 

offices are located. Idaho as a whole is a sparsely populated State (1970 population 713,008, up only 6.9 percent from 1960, compared to a nationwide 

increase in population of 13.3 percent), w ith a high degree of concentration in 

banking resources. The three largest banks in the State hold, respectively, 35.9 

percent, 27.9 percent, and 13.9 percent of the total commercial bank deposits 

in the State. Idaho Bank is the fourth largest commercial bank in Idaho, w ith

7.5 percent of such deposits.

Central, which is the 12th largest of Idaho's 23 commercial banks, has its 

main office in Grangeville (population 3,636), 1 branch in Kooskia (population

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

809), and 1 branch in Riggins (population 533). A ll three locations are in 

western Idaho County (population 12,891) which constitutes the upper central 

part of the State and stretches from Montana's western border to Oregon's 

eastern boundary. Approxim ately the eastern two-thirds of Idaho County is 

rugged wilderness area w ith only nominal population so that 93 percent of the 

county's population is concentrated in the western third of the county where 

Central has its offices. Economic activity in the western part of the county is 

centered in agriculture, lumbering, and, to a lesser extent, tourism. The 1972 

median household income fo r Idaho County was $6,463, about 12 percent 

below the State figure of $7,384.

The effects of the proposed transaction would be almost entirely confined 

to western Idaho County and a small portion of eastern Lewis County, where 

the com m unity of Kamiah is located. The closest office of Idaho Bank to any 

office of Central is a branch office in Lewiston, over 70 miles to the northwest. 

The tw o banks serve completely different banking markets and neither originates any meaningful volume o f business from areas served prim arily by the 

other. The proposed transaction therefore would not eliminate any significant 

existing com petition between the tw o banks.

Idaho law permits statewide branch banking, but increased com petition 

between Idaho Bank and Central does not appear likely. Central does not have 

the financial or managerial resources to be a meaningful com petitor in local 

markets presently served by Idaho Bank and the three major statewide banks, 

even if it could overcome the operational difficulties o f opening de novo o ffices at the distances required. Idaho Bank in turn is unlikely to find Idaho 

County attractive fo r de novo branching because of its sparse population, 

stable economy, lack of population growth, and the already low population per 

commercial banking office (about 2,600 persons).

Central's only competitors today are the tw o largest commercial banks in 

Idaho, which between them share the bulk o f local IPC deposits. The commercial banking structure in this western Idaho County-Lewis County area would 

be changed only to the extent that the State's tw o largest commercial banks 

would be faced w ith a stronger, more aggressive com petitor locally.

Statewide, Idaho Bank would increase its relatively limited share of total 

commercial bank deposits by only 0.7 percent and the resulting bank would 

have 8.2 percent of such deposits. Its position relative to Idaho's three largest 

commercial banks, however, would remain unchanged, while the fifth largest 

bank in the State would continue to be less than half its size.

The Board of Directors, accordingly, is of the opinion that the proposed 

transaction would not, in any section of the country, substantially lessen competition, tend tc create a m onopoly, or in any other manner be in restraint of 

trade.

Financial and Managerial Resources; Future Prospects. The financial and 

managerial resources and future prospects of Idaho Bank and Central are satisfactory, and are so projected fo r the resulting bank.

Convenience and Needs o f the Community to be Served. The residents and 

businessmen in western Idaho and Lewis Counties would realize only modest 

benefits from the proposed acquisition, deriving principally from the increased 

com petition which the resulting bank could offer to the tw o largest banks in 

the State across the full range of commercial bank services. Customers of

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 55

Central would find trust services, a greater variety of deposit accounts, sophisticated and specialized banking services, and a lending lim it almost 20 times 

that of Central more conveniently available to them than at present.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

R esources

(in

th o u san d s 

o f d o lla rs)

B a n kin g O ffic e s

In

o p e ra tio n

T o be 

o pe ra te d

Frankenmuth Bank & Trust Company 109,975 12 14

Frankenmuth, Michigan

to consolidate with

The Clio State Bank 19,151 2

Clio

Summary report by A ttorney General, August 27, 1973

Frankenmuth Bank and Clio State Bank are headquartered 12 miles apart 

and their nearest offices are separated by about 8 miles. There are no banking 

offices in the intervening area. Despite the close proxim ity of the parties' 

banking offices, the application indicates that very little direct com petition w ill 

be eliminated by the proposed acquisition. Frankenmuth Bank's service area 

and that of Clio State Bank are adjoining, but do not overlap to any significant 

extent.

Frankenmuth Bank has a strong current financial position and could legally 

branch de novo into the F lint (Genesee County) market. But because of Clio 

State Bank's modest market position in the Flint-Genesee market (2 percent of 

county deposits) and the existence of other significant potential entrants, we 

conclude that the proposed acquisition w ill not eliminate substantial potential 

com petition.

Therefore, we conclude that the proposed transaction would not have a 

substantial competitive impact.

Basis fo r Corporation approval, February 14, 1974

Frankenmuth Bank & Trust, Frankenmuth, Michigan ("Frankenm uth 

B a n k "), a State nonmember insured bank having total resources of 

$109,975,000 and total IPC deposits of $82,924,000, has applied, pursuant to 

Section 18(c) and other provisions of the Federal Deposit Insurance Act, for 

the Corporation's prior consent to consolidate w ith The Clio State Bank, Clio, 

Michigan ("C lio Bank"), w ith total resources of $19,151,000 and total IPC 

deposits of $14,973,000. The banks would consolidate under the charter and 

title of Frankenmuth Bank and, as an incident to the transaction, the 2 offices 

of Clio Bank would become branches of the resulting bank, increasing to 14 

the number of its offices.

Competition. Frankenmuth Bank operates eight offices in eastern Saginaw 

County and four offices in the neighboring counties o f Bay and Tuscola, in 

east-central Michigan. Saginaw County comprises the Saginaw SMSA and had a

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

1970 population of 219,743, up 15.2 percent during the 1960s. A pproximately 91,900 of the inhabitants of eastern Saginaw County live in the heavily 

industrialized city of Saginaw, and many residents of the outlying agricultural 

and suburban areas commute to that city fo r employment, shopping, or entertainment. Frankenmuth Bank has three offices in its headquarters city of 

Frankenmuth (1970 population 2,834), 10 miles southeast of the city of Saginaw, while its branch nearest to Clio Bank is at Birch Run, about 13 miles to 

the southeast of that city. Frankenmuth Bank is not affiliated w ith any bank 

holding company. It is the 37th largest of Michigan's 329 commercial banks 

w ith 0.37 percent of their aggregate deposits.

Clio Bank has its main office in the city of Clio (1970 population 2,357) in 

Genesee County, and its only branch 4 miles south of Clio in Mount Morris 

Township (1970 population 29,349, up 42.2 percent from 1960). The Clio 

area, which adjoins southeastern Saginaw County, is largely agricultural. Mount 

Morris Township, however, includes the rapidly expanding northwestern suburbs of the city of F lint (1970 population 193,317), the major city of Genesee 

County, which lies about 10 miles south of Clio. Many residents o f both the 

Clio area and Mount Morris Township commute to F lint fo r employment. 

Total population in Genesee County, the fourth most populous county in 

Michigan, numbers 445,589 residents, up 19 percent from 1960. Median household income fo r Genesee County is presently about 13 percent above the State 

level.

The proposed consolidation would have its most immediate and direct effects in an area which may be approximated by Genesee County and the 

southeastern corner of Saginaw County. The Saginaw County portion of this 

local market would include the townships of Frankenmuth and Birch Run 

which are both w ithin 10 miles of Clio. Ten commercial banks currently operate 72 offices in this banking market, 2 more banks than at midyear 1973. O f 

the eight banks operating in the market as of June 30, 1973, Frankenmuth 

Bank ranked fourth w ith 4.7 percent of the market's total IPC deposits, while 

Clio Bank ranked sixth w ith 1.6 percent. The 3 most prom inent local banks are 

among or affiliated w ith the 10 largest banking organizations in Michigan and 

collectively hold about 89 percent of the market's total IPC deposits. In terms 

of total deposit size, these three organizations range from $464 m illion to $1.3 

billion. While Frankenmuth Bank and Clio Bank both operate w ithin the local 

banking market, the inform ation filed w ith the application indicates that 

neither derives much business from the immediate areas served prim arily by the 

other. This may be explained by the natural pull towards the city of Saginaw in 

areas served by Frankenmuth Bank, and to the city of F lint in areas served by 

Clio Bank. In any event, while their proposed consolidation would eliminate 

some existing com petition between them, the effect would not be com petitively significant in view o f the present banking structure and deposit concentration of the market. The resulting bank would in fact have only 6.3 percent 

of the market's total IPC deposits.

Michigan law permits both Frankenmuth Bank and Clio Bank to branch de

novo in areas served prim arily by the other, although neither may branch de

novo into cities or villages already served by some other banking office. Clio 

Bank does not appear presently to be a likely candidate fo r de novo expansion. 

Frankenmuth Bank, on the other hand, if this proposed consolidation is 

denied, could find areas of the rapidly expanding suburbs of Flint south of Clio

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 57

attractive to it for de novo branching. The elimination of this potential fo r 

increased com petition between the tw o banks by virtue of the proposed consolidation is of m inor significance, however, in view of the number o f larger 

banks and bank holding companies that could also branch de novo in the same 

area. Both of Clio Bank's large Flint-based competitors, for example, are proposing additional branches near Clio if this proposed transaction is approved.*

The legal branching area of Frankenmuth Bank includes Saginaw County 

and portions o f the adjacent counties of Bay, Genesee, Shiawassee, and Tuscola w ithin a 25-mile radius o f the bank's main office. In this region, Frankenmuth Bank holds the sixth largest share (5.4 percent) of total I PC deposits, 

aggregating in excess of $1.5 billion, held by all area offices of the 22 commercial banks presently represented therein. The 5 largest commercial bank IPC 

deposit shares range from 8.8 percent to 24.5 percent, and in each instance are 

held by a bank which is among the 20 largest commercial banks in Michigan. 

The resulting bank would retain Frankenmuth Bank's sixth position in this 

market, holding 6.3 percent of the region's commercial bank IPC deposits. It 

would rank 31st largest of Michigan's commercial banks, holding 0.44 percent 

of their aggregate 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 com petition, tend to create a m onopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. Each of the consolidating banks has satisfactory financial and managerial resources. Future 

prospects of the resulting bank are favorable.

Convenience and Needs o f the Community to be Served. Customers of the 

Clio Bank would experience the greatest benefits of the proposed consolidation. The normal lending lim it o f the resulting bank would be about six times 

greater than that of Clio Bank, and trust facilities, FHA mortgage loans, and 

electronic data processing would be made available. In addition, a much larger 

and more aggressive institution would offer significantly strengthened competition to the tw o major Flint-based commercial banks throughout the local 

banking market.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

R esources 

(in 

thousands 

o f d o lla rs )

B a n k in g O ffic e s

In

o p e ra tio n

T o be 

o pe ra te d

Home Savings Bank of Upstate New York

Albany, New Y ork

174,108 6 7

to merge with

Fort Edward-Hudson Falls Savings

and Loan Association

Fort Edward

7,116 1

*C itiz e n s C o m m e rc ia l & Savings B ank w o u ld establish a b ra n ch 1 /2 m ile east o f C lio 

B a n k's m ain o ffic e ; Genessee M e rcha n ts B ank & T ru s t C o., 2 m iles so u th o f C lio B a n k's 

bran ch .

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Summary report by A ttorney General, November 30, 1973

With the exception of its Greenwich office, Home Savings' offices are situated in the Albany-Schenectady-Troy area, a considerable distance from Fort 

Edward. However, Home Savings' Greenwich office is located in Washington 

County about 12-15 miles south of Fort Edward. Home Savings and Fort 

Edward S&L each hold approximately 8 percent o f Washington County's total 

savings and time deposits. Their combined share of about 16 percent would 

rank the resulting institution second among the six commercial banks and two 

savings banks w ith savings and time deposits in the county. Thus, it appears 

that the proposed merger may eliminate some existing com petition and increase concentration in savings and time deposits in Washington County.

Basis fo r Corporation approval, March 1, 1974

Home Savings Bank of Upstate New Y ork, Albany, New York ("Hom e 

S a v in g s "), an insured mutual savings bank w ith total resources of 

$174,108,000 and total deposits of $163,234,000, has applied, pursuant to 

Section 18(c) and other provisions of the Federal Deposit Insurance Act, for 

the Corporation's prior consent to merge w ith Fort Edward-Hudson Falls 

Savings and Loan Association, Fort Edward, New York ("S & L "), a federally 

insured, State-chartered savings and loan association w ith total resources of 

$7,116,000 and total deposits of $6,043,000. The institutions would merge 

under the charter and title of Home Savings and, as an incident to the merger, 

the sole office of S&L would become a branch o f the resulting bank, increasing 

to seven the number of its offices.

Competition. Home Savings operates its main office and one branch in the 

city of Albany, one branch each in the suburban towns o f Colonie and Guilderland, and one branch each in the counties of Rensselaer and Washington. The 

bank acquired the tw o latter branches during 1971 by merging two Statechartered savings and loan associations. Under present law, Home Savings may 

acquire any number of branches by merger throughout the Fourth Banking 

District, a 15-county region in northeastern New York State, but it may open 

de novo branches w ithin the district at a rate of only one each year. Commencing January 1, 1976, mutual savings banks w ill be able to branch statewide subject to the same lim itation of one de novo branch per year that exists 

today.

S&L has its only office in Fort Edward, Washington County, New York and 

serves the Glens Falls market, a residential and industrial area having an estimated population of 50,000, on the Hudson River in central-eastern New York 

State. S&L is the smallest of the 14 insured savings and loan associations 

operating in the Fourth Banking District.

S&L's office is in the Glens Falls banking market, some 50 road-miles north 

of Albany and about 15 road-miles northwest of Home Savings' nearest branch, 

in Greenwich, Washington County. Although there is some overlap o f trade 

areas w ithin Washington County, neither Home Savings nor S&L draws a 

significant amount of its business from areas served by the other. Moreover, the 

$500-m illion Albany Savings Bank dominates th rift institution deposits in the 

areas w ithin Washington County, neither Home Savings nor S&L draws a 

National Savings Bank of the city of Albany has entered the market area w ith a 

de novo branch, and other savings banks can be expected to follow in the years 

to come. Because of this and because of the limited deposits held by S&L, any

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 59

loss of potential com petition between S&L and Home Savings which might be 

occasioned by their merger appears to have limited competitive significance.

Home Savings is the sixth largest mutual institution in the Fourth Banking 

District, holding about 6.1 percent of the deposits held by all th rift institutions 

in the district. S&L holds only 0.2 percent of such deposits.

Effects o f the merger should have an early impact on com petition in the 

Glens Falls market. The resulting bank, offering larger size mortgage loans and 

introducing services not now available at the S&L office, should increase competition w ith the tw o nearby offices of the Albany Savings Bank.

The Board of Directors is of the opinion that the proposed merger would 

not, in any section of the country, substantially lessen com petition, tend to 

create a m onopoly, or in any other manner be in restraint o f trade.

Financial and Managerial Resources; Future Prospects. Financial and managerial resources o f each institution, and of the resulting bank, are considered 

satisfactory. Future prospects of the resulting bank are favorable.

Convenience and Needs o f the Community to be Served. As a result of the 

proposed merger, day-of-deposit-to-day-of-withdrawal accounts and Savings 

Bank Life Insurance would be introduced to the S&L location. The resulting 

bank, operating under a more liberal lending policy and having a greater capacity than S&L to meet the demands fo r both residential and commercial m ortgage funds, should provide more effective com petition in the field of real estate 

lending than S&L to the commercial banks as well as to the other tw o savings 

banks in the Glens Falls market.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

th o u san d s 

o f d o lla rs)

B a n k in g O ffic e s

I n

o p e ra tio n

T o be 

o pe ra te d

Northwest Bank

Oklahoma C ity, Oklahoma

17,610 2 2

to merge with

Northwest Building Corporation

Oklahoma City

351

Summary report by A ttorney General, December 6, 1973 

Northwest Bank operates its single office in Oklahoma City, Oklahoma 

County, Oklahoma. On September 30, 1973, Northwest Bank held total deposits of $16.6 m illion (including IPC demand deposits of $5.2 m illion) and 

net loans and discounts of $9.9 m illion. Northwest Building Corporation is 

located in Oklahoma City, Oklahoma County, Oklahoma; it owns the land and 

building upon which Northwest Bank is located.

We conclude that the proposed merger of Northwest Bank and Northwest 

Building Corporation w ill not have any competitive impact.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Basis fo r Corporation approval, March 1, 1974

Northwest Bank, Oklahoma City, Oklahoma, a State nonmember insured 

bank w ith total resources of $17,610,000, has applied, pursuant to Section 

18(c) and other provisions of the Federal Deposit Insurance A ct, fo r the Corporation's prior consent to merge w ith Northwest Building Corporation, Oklahoma City, Oklahoma, ("B uilding"), a noninsured, nonbanking entity w ith 

total resources of $351,000, under the charter and title of Northwest Bank. 

The resulting bank would operate the two banking offices of Northwest Bank 

in their present locations.

Building's assets are principally the land and buildings presently occupied by 

the tw o offices of Northwest Bank. The proposed merger would result in the 

transfer of ownership to Northwest Bank of its banking premises subject to an 

outstanding mortgage and the exchange of newly issued stock of Northwest 

Bank for stock of Building. With the merger effected, Building would no longer 

exist as a corporate entity.

Competition. The proposed merger would accomplish the consolidation of a 

bank w ith its banking premises affiliate. No effect on existing or potential 

com petition, or on the structure of banking in any relevant area would result. 

The merger, moreover, would not alter in any manner the competitive stance 

of Northwest Bank or of any other bank.

Financial and Managerial Resources; Future Prospects. Financial and managerial resources of both participants are acceptable. Future prospects of the 

resulting bank appear to be favorable.

Convenience and Needs o f the Community to be Served. The resulting bank, 

w ith its services, personnel, and office locations unchanged from those of 

Northwest Bank, would have an equal capability to serve the convenience and 

needs of the com m unity.

Resources ( \n

B a n kin g O ffic e s

u n 

th ousands 

o f d o lla rs )

In

o p e ra tio n

T o be 

o p e ra te d

The Union Bank and Savings Company

Bellevue, Ohio

35,591 3 4

to acquire the assets and assume

the deposit liabilities o f

The Home Savings Building and Loan

Company

Clyde

2,451 1

Summary report by Attorney General, October 15, 1973 

Union Bank's Bellevue offices are located about 8 miles southeast of Home 

Savings' office in Clyde. Union Bank holds approximately 8 percent of Huron 

County's total time and savings deposits held by commercial banks and savings 

and loan associations, while Home Savings holds about 1.3 percent of such 

deposits in adjacent Sandusky County. Although Union Bank apparently derives some business from the area served by Home Savings, it does not appear

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 61

that the proposed transaction would substantially increase concentration in 

time deposits or mortgage loans in any relevant geographic market.

Therefore, we conclude that the proposed transaction would not have a 

substantial competitive impact.

Basis for Corporation approval, March 11, 1974

The Union Bank and Savings Company, Bellevue, Ohio ("U nion Bank"), an 

insured State member bank w ith total resources of $35,591,000 and total IPC 

deposits of $28,256,000, has applied, pursuant to Section 18(c) 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, The Home Savings Building 

and Loan Company, Clyde, Ohio ("Hom e Savings"), a nonfederally insured 

mutual savings and loan association w ith total resources of $2,451,000 and 

total IPC deposits of $2,305,000. The transaction would be effected under the 

charter and w ith the title of Union Bank. Union Bank has also applied to the 

Ohio Division of Banks and the Federal Reserve Bank of Cleveland for permission to establish a branch at the sole location of Home Savings. Consummation of the proposed transaction, including establishment of the Clyde 

branch, would increase the number of Union Bank's offices to four.

Competition. Union Bank operates its main office and one branch in Bellevue (1970 population 8,604) and one additional branch in Monroeville (1970 

population 1,455), about 6 miles southeast of Bellevue. Bellevue is located in 

both Sandusky and Huron Counties in the central portion of northern Ohio. 

Home Savings operates its only office in the village of Clyde (1970 population 

5,503), about 7 miles northwest of Bellevue.

The most appropriate geographic area in which to assess the effects of the 

proposed transaction lies w ithin an approximate 10-mile radius of Clyde. This 

area would include most of Sandusky County (1970 population 60,983, up 8.0 

percent since 1960) and portions of Huron, Seneca, and Erie Counties. The 

economy of the area has a good mix of industry and agriculture, and the 

W hirlpool Corporation has a large plant in Clyde. Ample rail and highway 

facilities make the area attractive to new industry.

Home Savings is a limited-service savings and loan association offering only 

5-percent passbook savings accounts, residential mortgages, and passbook 

loans. Since its passbook rate is the same as Union Bank's and other commercial banks in the area, and since it competes w ith all other deposit institutions 

in the geographic market area fo r residential mortgages, it would appear 

appropriate to include commercial bank IPC time and savings deposits as well 

as the mortgage loans of all such institutions in determining the likely impact 

of the proposed acquisition on com petition w ithin the local market.

Within a 10-mile radius of Clyde there are seven commercial banks and five 

savings and loan associations. The W hirlpool Corporation also has a credit 

union w ith about $6.5 m illion in deposits that competes for the savings of 

Clyde residents. Union Bank ranks sixth among the 12 commercial banks and 

savings and loan associations in terms of total IPC time and savings deposits, 

w ith approximately 9.5 percent of the aggregate, while Home Savings has only 

about 1.4 percent of such deposits. The resulting bank's relative position 

among these institutions would not change significantly and the proposed 

transaction would not have any appreciable effect on this distribution of time 

and savings deposits in the relevant geographic area. Further, the number of

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

alternatives available to the local Clyde com m unity for time and savings deposit services would not be changed. Union Bank is not currently represented 

there, and the branch which would replace Home Savings would pay the same 

interest rate on passbook savings that Home Savings now pays, besides offering 

demand deposit and time deposit services not presently available at Home 

Savings. Significant com petition would remain fo r all commercial bank and 

th rift institution services in both Fremont and Bellevue, each of which is 7 

miles from Clyde;.

There is very little existing com petition between Union Bank and Home 

Savings, even though their closest offices are only about 7 miles apart in an 

area w ith good roads. This is equally true whether passbook deposits or residential mortgage loans are considered. The proposed transaction therefore 

would not eliminate any significant existing competition between Union Bank 

and Home Savings.

Increased com petition between the tw o institutions in the future appears 

unlikely. There are statutory restrictions relative to the powers of savings and 

loan associations which would effectively prevent Home Savings from becoming a more significant com petitor of Union Bank. In addition, Home Savings has little in the way o f financial and managerial resources, having accumulated only $2,200,000 in total deposits in over 75 years in operation, and it is 

currently functioning w ith only one full-tim e employee. Accordingly, the proposed transaction would eliminate no significant potential com petition between Union Bark and Home Savings.

Inasmuch as :he resulting bank would operate as a commercial bank, it is 

also appropriate to consider what effect the proposed transaction might have 

on the structure of commercial banking in Union Bank's maximum branching 

and merging area. De novo branching in Ohio is generally restricted to the 

confines of a single county, but because Bellevue, the location of Union Bank's 

main office, is located in both Sandusky and Huron Counties, Union Bank may 

legally branch throughout both of those counties. In this 2-county area there 

are 13 commercial banks operating 32 offices w ith an aggregate of 

$342,581,000 in total deposits. Union Bank is the fifth largest of these banks 

w ith 9.0 percent of their total deposits. The addition of Home Savings' 

$2,200,000 in deposits would raise this share to 9.6 percent and would make 

Union Bank approximately the same size as the fourth-ranked commercial 

bank. Two of the commercial banks in this tw o-country area, however, are 

affiliated w ith m ultibank holding companies, each of which has in excess o f $1 

billion in total deposits. It is apparent that the proposed transaction would 

have no significant effect on the structure of commercial banking in Sandusky 

and Huron Counties.

Under these c rcumstances, the Board of Direcors is of the opinion that the 

proposed transaction would not, in any section of the country, substantially 

lessen com petition, tend to create a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. Both Union Bank 

and Home Savings have satisfactory financial and managerial resources for the 

business they presently do, as would the resulting bank. Union Bank and the 

resulting bank have satisfactory prospects fo r the future, but it would appear 

that Home Savings would fare better as part of the resulting bank rather than 

operating independently.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 63

Convenience and Needs o f the Community to be Served. The proposed 

transaction would benefit individuals and businesses in the Clyde area by introducing an alternative for the full range of commercial banking services 

(except trust services) now available only from one other small commercial 

bank there. Residents of the Clyde com m unity would benefit from a second 

local alternative for checking account services, higher-yield time deposits, a 

significantly larger lending lim it, and increased local availability of commercial 

and industrial loans.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

R esources

(in

th o u san d s 

o f d o lla rs)

B a n k in g O ffic e s

I n

o p e ra tio n

T o be 

o pe ra te d

Erie County Savings Bank

Buffalo, New York

1,085,498 8 9

to merge with

Frontier Savings and Loan Association

Cheektowaga

553 1

Summary report by A ttorney General, December 6, 1973 

Erie Savings and Frontier are both situated in the immediate Buffalo area in 

eastern Erie County. The service area of Erie Savings completely encompasses 

that of Frontier. Thus, it appears that the proposed transaction would elim inate some existing com petition. However, in view of the relatively small size of 

Frontier, it does not appear that the proposed merger would substantially 

increase concentration in the greater Buffalo area.

Therefore, we conclude that the proposed transaction would not have a 

substantial competitive impact.

Basis for Corporation approval, March 20, 1974 

Erie County Savings Bank, Buffalo, New York ("Erie S B"), an insured 

mutual savings bank w ith total resources of $1,085,498,000 and total deposits 

of $1,007,438,000, has applied, pursuant to Section 18(c) and other provisions 

of the Federal Deposit Insurance A ct, fo r the Corporation's prior consent to 

merge w ith Frontier Savings and Loan Association, Cheektowaga, New Y ork 

("F rontier S & L "), a noninsured mutual savings and loan association w ith total 

resources of $553,000 and total deposits of $491,000. The institutions would 

merge under the charter and title of Erie SB and, as an incident to the merger, 

the sole office of Frontier S&L would become a branch of the resulting bank, 

increasing the number of its offices to nine.

Competition. Erie SB is headquartered in Buffalo and operates a total of 

eight offices, all in Erie County at the western end of New Y ork State on Lake 

Erie. Buffalo, the State's second largest city, is an im portant rail center and 

lakeport. Although the area's economy is diversified, flo u r milling and steel and 

automobile production are im portant contributors. Erie SB is the second largest th rift institution in Erie County, w ith 32.1 percent of the deposits held by

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

the 14 such institutions there. It is also the second largest th rift institution in 

New York's Ninth Banking District, w ith 27.9 percent of the total deposits 

held by all th rift institutions in the district as of December 31, 1972.

Frontier S&L operates its only office in Cheektowaga, a growing suburban 

town which is adjacent to Buffalo and which is an integral part of the Buffalo 

metropolitan area. It is not, however, an effective competitor. In more than 80 

years since its organization in 1891, Frontier S&L has accumulated only 

$491,000 in total deposits. Two-thirds of this total originates from only three 

families. It is open only 141/2 hours each week, has no active full-tim e officers 

and only tw o part-time employees, has only seven mortgages w ith principal 

amounts in excess of $20,000, and has had operating deficits or only nominal 

operating income in each of the past 4 years. While some existing com petition 

and some potential for increased com petition in the future between the two 

institutions might be eliminated by their proposed merger, it is apparent that 

the overall effect of their merger on com petition would be de minimis. Moreover, should this merger be consummated, 41 offices of 12 competing th rift 

institutions would remain available to residents of Buffalo and Erie County, 

including 8 offices of the $1.3-billion-deposit Buffalo Savings Bank, the largest 

th rift institution in the market.

Under the circumstances presented, the Board o f Directors is o f the opinion 

that the proposed merger would not, in any section of the country, substantially lessen com petition, tend to create a monopoly, or in any other manner 

be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Erie SB has, and the 

resulting bank would have, adequate financial and managerial resources and 

favorable future prospects. Although Frontier S&L's financial and managerial 

resources appear acceptable fo r the limited business it does, its future prospects 

are bleak as an independent institution trying to compete effectively in the 

heavily populated and urbanized Erie market.

Convenience and Needs o f the Community to be Served. Customers of 

Frontier S&L would benefit from the broad range of services offered by the 

resulting bank, including higher interest rates on longer term time deposits, 

FHA and V A mortgage loans, student loans, savings bank life insurance, safe 

deposit box rentals, and full banking hours. Frontier S&L's customers would 

find more lendable funds available and 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

th o u san d s 

o f d o lla rs )

B a n kin g O ffic e s

In

o p e ra tio n

T o be 

o pe ra te d

Northern Central Bank and Trust Company

W illiamsport, F’ennsylvania

128,468 8 11

to merge with

Susquehanna Valley Bank and Trust Company

Sunbury

14,086 3

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 65

Summary report by A ttorney General, February 13, 1974 

While Northern Central Bank is headquartered in Lycoming County about 

27 miles from Susquehanna Valley Bank's head office, it operates a branch 

office in M ilton, Northumberland County, Pennsylvania. This M ilton office is 

about 10 miles from the Northumberland branch of Susquehanna Valley Bank 

and about 13 miles from the other tw o offices of Susquehanna Valley Bank. 

Northern Central Bank was the fifth largest of the 17 banks operating in 

Northumberland County as of June 30, 1973 w ith $12.9 m illion, or 5 percent, 

of total county deposits. Susquehanna Valley Bank was the seventh largest 

bank in the county w ith $12.6 m illion, or 4.9 percent, of total county deposits 

as of that date. Although the application indicates that there is only slight 

deposit and loan overlap between the tw o banks, the short distance and easy 

access between them, combined w ith the absence o f other bank offices between Northumberland and M ilton, indicate that this transaction would elim inate some existing com petition in western Northumberland County.

Basis for Corporation approval, March 20, 1974

Northern Central Bank and Trust Company, W illiamsport, Pennsylvania 

("C entral"), a State nonmember insured bank w ith total resources of 

$128,468,000 and total IPC deposits of $103,959,000, has applied, pursuant 

to Section 18(c) and other provisions o f the Federal Deposit Insurance A ct, fo r 

the Corporation's prior consent to merge w ith Susquehanna Valley Bank and 

Trust Company, Sunbury, Pennsylvania ("V alley Bank"), w ith total resources 

of $14,086,000 and total IPC deposits of $10,844,000. These banks would 

merge under the charter and title o f Central. The resulting bank would have a 

total of 11 offices, including the 3 offices presently operated by Valley Bank.

Competition. Central operates a total of eight offices: its main office and 

tw o branches in W illiamsport and tw o branches in the Montgomery area, about 

11 road-miles southeast of Williamsport, all in Lycoming County; two branches 

in the M ilton area of Northumberland County, some 25 road-miles southeast of 

W illiamsport; and one branch in Athens, Bradford County, about 80 road-miles 

northeast of Williamsport. Central is the largest commercial bank operating in 

Lycoming County, although four other commercial banks in the county individually control IPC deposits of more than $60 m illion.

Valley Bank operates its three offices in Northumberland County: its main 

office and one branch in the city of Sunbury (1970 population 13,025, representing a decline of 4.8 percent during the 1960s) and one branch in N orthumberland borough (1970 population 4,102). The economy of N orthum berland County is prim arily agricultural and 1972 income levels are about 23 

percent below the State level.

The competitive impact of the proposed merger would be most immediate 

and direct w ithin approximately a 12-mile radius of Sunbury, an area which 

would include M ilton and Lewisburg to the north, Shamokin Dam to the west, 

and Selinsgrove to the southwest. In this market, 15 commercial banks w ith 25 

offices hold IPC deposits aggregating $229,906,000. Valley Bank has the 11th 

largest share (4.7 percent) of such deposits, while the tw o M ilton area offices 

of Central hold the 7th largest share (5.5 percent). The largest share (17.8

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

percent) is held by First National Trust Bank, a $64.4-mil!ion-lPC-deposit 

institution headquartered in Sunbury, and the second largest share (12.1 percent) is held by Snyder County Trust Company, a $27.7-mil Iion-l PC-deposit 

institution headquartered in Selinsgrove. The resulting bank would hold the 

fourth largest share (10.2 percent) of IPC deposits held by all such offices. The 

elimination of existing competition between the two banks which would be 

occasioned by their merger appears to have only limited competitive significance in view of the number of alternatives for banking services in the relevant 

market and the small share of area IPC deposits held by Valley Bank.

Pennsylvania law permits a commercial bank to branch de novo or to merge 

throughout its main office county and all counties contiguous thereto. Central, 

thus, may enter Sunbury city and Northumberland borough. Neither of these 

communities would appear attractive to Central for de novo entry, however, 

because of a stagnant economy and buying levels 23 percent below the State 

level. Valley Bank, fo r its part, has limited financial and managerial resources 

and is not likely to seek de novo expansion at the present time. The potential 

for increased connpetition between Central and Valley Bank through de novo

branching in the future is thus considered remote.

W ithin the 10-county region in which Central may expand de novo or by 

merger (its maximum potential market since Pennsylvania law does not permit 

the operation of m ultibank holding companies), a total of 59 commercial 

banks operate 142 offices and hold area IPC deposits aggregating $1,212 m illion. Central has 8.6 percent— the largest share— of such deposits and 5.6 percent of the area's commercial banking offices. The proposed transaction would 

increase Central':; IPC deposit share in this region to 9.5 percent, while the four 

next ranking banks would hold in the aggregate about 24.2 percent of such 

deposits. In view of the relatively unconcentrated nature of this 10-county area 

and the presencs in it of other competitors of substantial 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 merger would not, in any section o f the country, substantially lessen 

com petition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. The resulting bank 

would have adequate financial and managerial resources. Its future prospects 

would be satisfactory.

Convenience and Needs o f the Community to be Served. The proposed 

merger would have virtually no effect on Central's present customers. The 

merger would provide customers of Valley Bank, however, w ith the specialized 

lending services of a major area bank w ith a lending lim it of more than $1 

m illion. Interest paid on regular savings accounts would be increased from 4 

percent to 4.5 percent per annum. Data processing facilities and broadened 

trust services would be available.

Based on the foregoing, the Board of Directors has concluded that approval 

of the applicatior is warranted.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 67

R esources

(in

th o u san d s 

o f d o lla rs)

B a n kin g O ffic e s

In

o p e ra tio n

T o be 

o pe ra te d

First State Bank of Saginaw

Saginaw, Michigan

35,768 5 6

to consolidate with

The State Bank of Vassar

Vassar

11,746 1

Summary report by A ttorney General, October 31, 1973 

The nearest offices o f the parties are situated approximately 20 miles apart, 

w ith several competitive alternatives in the intervening area. However, because 

a substantial number o f residents in the Vassar area commute to Saginaw, it 

appears that the proposed consolidation may eliminate some existing com petition. It does not appear, however, that the transaction would substantially 

increase concentration in any relevant market.

Applicant could legally establish de novo offices near Vassar, in the area 

served by Bank. However, in view of the nature of that com m unity and the 

existence of other significant potential entrants, we conclude that the consolidation w ill not eliminate substantial potential competition.

Therefore, we conclude that the proposed transaction would not have a 

substantial competitive impact.

Basis fo r Corporation approval, April 11, 1974 

First State Bank of Saginaw, Saginaw, Michigan ("F irst State"), a State 

nonmember insured bank w ith total resources of $35,768,000 and total IPC 

deposits of $25,550,000, has applied, pursuant to Section 18(c) and other 

provisions o f the Federal Deposit Insurance Act, for the Corporation's prior 

consent to consolidate w ith The State Bank of Vassar, Vassar, Michigan 

("Vassar Bank"), which has total resources of $11,746,000 and total IPC deposits of $9,363,000. The banks would consolidate under the charter and title 

of First State. As an incident to the transaction, the sole office of Vassar Bank 

would become a branch of the resulting bank, increasing the number of its 

offices to six.

Competition. First State operates five offices in Saginaw County in eastcentral Michigan and holds 5.3 percent o f total commercial bank IPC deposits 

in the county. The main office and tw o branches are in the city o f Saginaw, 

one branch is in Spaulding Township, and one branch is in Hemlock, an unincorporated village approximately 17 miles west of Saginaw. While the population of the city of Saginaw declined from 98,265 in 1960 to 91,849 in 1970, 

the population of Saginaw County increased 15.2 percent to 219,743 during 

the same period. The city of Saginaw and its suburbs are highly industrialized, 

w ith the manufacture o f automotive components being the principal activity. 

Other portions of the county are dependent upon agriculture.

Vassar Bank operates its only office in the town of Vassar (1970 population 

2,802) in Tuscola County (1970 population 48,603) and holds 9.8 percent of 

total commercial bank IPC deposits in the county. The economy of this area is 

similar to that of the much larger Saginaw area.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

The proposed consolidation would have its most immediate and direct effects w ithin a 15-mile radius of the town of Vassar. This area includes the 

western half o1 Tuscola County, a portion of eastern Saginaw County, and the 

northeastern corner of Genesee County. Eight banks operate 19 offices w ithin 

this area. Vassar Bank holds 7.1 percent o f total commercial bank IPC deposits 

and is the fifth largest bank in the market. The largest bank in the market holds 

50.2 percent of the area's commercial bank IPC deposits and has just consolidated w ith the second largest bank which holds 11.1 percent o f such deposits. The closest office of First State is located approximately 21 miles west 

of Vassar, and there are numerous offices of larger banks located in the intervening area. Consequently, First State is not considered competitive in this 

market and approval of the subject proposal would have no significant effect 

on existing com petition between the tw o banks.

Michigan law permits both banks to enter de novo the market areas of the 

other, although it prohibits de novo entry into cities or villages already served 

by a banking office. Vassar Bank has operated its single office ever since its 

organization in 1934, and the possibility that it would begin de novo branching 

now is considered remote in view of its small size, its unaggressive and conservative management, and the formidable com petition offered by the larger 

banking institutions operating in its legal branching area. First State, however, 

has an aggressive and expansion-minded management and would probably expand eventually into Vassar Bank's market area despite the present number of 

banking offices there and despite the lower-than-average income levels that 

prevail. The proposed consolidation would foreclose this potential for increased com petition between the tw o banks, but this appears to be of m inor 

competitive significance in view of the number of larger banks in Vassar Bank's 

market and the relatively small share of commercial bank IPC deposits presently held by Vassar Bank.

The maximum legal branching area of First State includes Saginaw County 

and portions of the adjacent counties of Bay, Genesee, Gratiot, Midland, 

Shiawassee, and Tuscola w ithin a 25-mile radius of the bank's main office at 

Saginaw. In this area there are 16 commercial banks w ith total IPC deposits of 

$823,712,000. First State holds the 10th largest share (2.8 percent) of such 

deposits. The five largest banks are represented, including an affiliate of the 

$2.5-billion-deposit Michigan National Corporation, and hold 73.3 percent o f 

these deposits; their shares range from 8.9 percent to 24.6 percent. Upon 

consummation of this proposed consolidation, the resulting bank would hold 

4.0 percent of IPC deposits and would have the ninth largest IPC deposit share.

Based on the foregoing, the Board of Directors has concluded that the 

proposed consolidation would not, in any section of the country, substantially 

lessen com petition, tend to create a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. Each of the consolidating banks has satisfactory financial and managerial resources. Future 

prospects of the resulting bank are favorable.

Convenience and Needs o f the Community to be Served. The increased 

lending lim it of the resulting bank would benefit customers in each of the areas 

presently served by the tw o banks, particularly those in the service area of 

Vassar Bank. In addition, in Vassar Bank's market, the resulting bank would 

provide an alternative to the larger banks presently represented there fo r free

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 69

checking accounts, 5-percent 90-day passbook accounts, 7 percent 4-year time 

deposits, and commercial and industrial loans. The consequent increase in competition should benefit all consumers o f banking services in Vassar Bank's 

market area.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

R esources

(in

th o u san d s 

o f d o lla rs )

B a n k in g O ffic e s

In

o p e ra tio n

T o be 

op e ra te d

American Security Bank

North Platte, Nebraska

- - 1

to merge with

Citizens Security Bank

Wallace

499 1

Summary report by A ttorney General, March 4, 1974 

Citizens Security Bank ("C itizens") is a unit bank located in Wallace, Lincoln County, Nebraska. The application indicates that as o f December 31, 

1973, Citizens had total assets o f $498,981, held total deposits of $218,372, 

and had loans amounting to $16,769. American Security Bank ("A m erican") is 

in organization and has been chartered to operate in North Platte (population 

20,000), the county seat of Lincoln County about 35 miles northeast of 

Wallace (population 241).

In view of the nature of the corporate parties to this transaction, we conclude that it would be unlikely to have any significant adverse competitive 

effects.

Basis fo r Corporation approval, April 11, 1974 

Pursuant to Sections 5 and 18(c) and other provisions of the Federal Deposit Insurance Act, applications have been filed on behalf of American Security Bank, North Platte, Nebraska ("A m erican"), a proposed new bank, fo r 

Federal deposit insurance and fo r the Corporation's prior consent to its merger 

w ith Citizens Security Bank, Wallace, Nebraska ("C itizens"), a State nonmember insured bank w ith total resources of $499,000 and IPC deposits of 

$186,000, under the charter and title of American. The sole office of the 

resulting bank would be located at 410 Rodeo Road, North Platte. American 

would not be in operation prior to the proposed merger. Upon consummation 

of that transaction, the sole office of Citizens, now being operated in Wallace, 

would be terminated.

Competition. North Platte (population 19,447) is the seat o f Lincoln 

County (population 29,538). Located in west-central Nebraska some 240 

road-miles west of Omaha and a similar distance northeast of Denver, North 

Platte is the commercial center for an agricultural region which lies w ithin a 

radius of some 75 miles of the city and has a population estimated at 75,000. 

The city had its origins as a railroad town and the Union Pacific Railroad, the

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

area's largest employer, maintains extensive facilities here. The railroad's rightof-way runs through the city and, w ith limited crossings available, rather effectively divides it into a northern and southern section. The city's principal 

business district lies in the southern section and contains all three commercial 

banks which serve the city. These three banks control IPC deposits aggregating 

$62,387,000.

American would be established in the northern section of the city and 

would offer the services of drive-up tellers and convenient parking facilities. No 

commercial bank facilities are presently located in this area, and the estimated 

4,800 inhabitants and businessmen when seeking commercial bank services 

must travel a minimum of one mile to obtain such services. A survey of the 

northern section of the city indicated that the proposed bank would have 

considerable acceptance. It appears that this market has sufficient population 

and commercial activity to support a new bank. By virtue of the proposed 

merger, American would commence business w ith deposits of some $150,000. 

It would be affiliated through common stock ownership w ith tw o other Lincoln County commercial banks: Farmers State Bank, Wallace, and The Hershey 

State Bank, Hershey. Combined, the IPC deposits held by these three banks 

would approximate 7.7 percent of the total IPC deposits held by all eight 

insured commercial banks in the county.

Citizens operates its sole office 2 hours a week in Wallace (population 241), 

some 45 road-miles southwest of North Platte. It has not been an effective 

com petitor during recent years and presently holds only 0.3 percent of Lincoln 

County's total commercial bank IPC deposits. A t year-end 1973, it had only 7 

loan accounts and 13 active depositors. It has been controlled since October

1972 by the same group which controls Farmers State Bank in Wallace.

Citizens and American w ill not be in operation concurrently and, thus, 

competition between them on the date of merger would be nonexistent. By 

virtue of their common ownership, there is no likelihood that effective competition would develop between the tw o banks in the future through de novo

branching.

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 

com petition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. The resulting bank 

would have adequate capital funds for the volume of business it is expected to 

draw during the several early years of its operations, and its financial resources 

are anticipated to be satisfactory. Its management is also considered acceptable, and its future prospects are favorable.

Convenience and Needs o f the Community to be Served. The merger would 

provide residents and businessmen of the northern section of North Platte a 

convenient local source of banking services-the first to be established in this 

area of an estimated 4,800 inhabitants. Drive-up tellers and ample parking 

facilities would be provided and these should prove attractive in the city, where 

such facilities are at a minimum. Furthermore, residents and businessmen in 

Wallace would experience no perceptible change in the banking services available to them in view of Citizens' present activities and the presence in town, 

under common control, of Farmers State Bank.

The Board of Directors has concluded, follow ing a careful evaluation of all

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 71

available facts and inform ation relevant to the application for Federal deposit 

insurance, that approval of the application is warranted. In addition, the Board 

of Directors has concluded that American's application for consent to merge 

w ith Citizens should be approved.

R esources

(in

th o u san d s 

o f d o lla rs)

B a n kin g O ffic e s

I n

o p e ra tio n

T o be 

o pe ra te d

American Commercial Bank 21,093 5 6

Spokane, Washington

to purchase the assets and assume

the deposit liabilities o f

lone State Bank 2,511 1

lone

Summary report by A ttorney General, December 21, 1973

The nearest offices of American Bank and lone Bank are approximately 90 

miles apart, w ith several banking offices intervening. Thus, the proposed acquisition w ill not eliminate substantial existing com petition. And in view of the 

modest size of the parties, coupled w ith the existence of other potential 

entrants into their respective service areas, it does not appear that the proposed 

transaction w ill eliminate substantial potential competition.

Therefore, we conclude that the proposed transaction would not have a 

substantial competitive impact.

Basis for Corporation approval, April 11, 1974

American Commercial Bank, Spokane, Washington ("A m erican")(total resources $21,093,000; IPC deposits $14,380,000), a State nonmember insured 

bank, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, fo r the Corporation's prior consent to purchase the 

assets of, and assume liability to pay deposits made in, lone State Bank, lone, 

W a sh in g to n ( " lo n e S tate")(total resources $2,511,000; IPC deposits 

$1,967,000). As an incident to the transaction, the sole office of lone State 

would be operated as a branch of American, increasing to six the number of its 

offices.

Competition. American operates five offices in Spokane County: its main 

office and three branches w ithin the city of Spokane and one branch in the 

town of Airw ay Heights, located some 10 road-miles west of the main office. 

Spokane city is the county seat and the center of trade and finance for the 

county and for much of eastern Washington as well. Lumbering, agriculture, 

manufacturing, mining, and m ilitary installations are all significant in the economy of the area.

The city of Spokane and its environs, centrally located in the county, are 

the primary trade area of American. This area accounts for all but a small

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

fraction of the county's population, and the county may, thus, for convenience 

be considered American's present market. Ten commercial banks compete in 

Spokane County, their 57 area offices holding IPC deposits aggregating 

$553,661,000. The three largest commercial banks in this market, Seattle-First 

National Bank, Old National Bank of Washington, and Washington Trust Bank, 

together control a total of 81.7 percent of the IPC deposits held by all commercial banking offices w ithin the county. American, although the sixth largest 

in terms of area commercial IPC deposits held, has only 2.6 percent of such 

deposits.

lone State is located in a small com m unity (population 529) in sparsely 

populated Pend Oreille County (population 6,025) in the extreme northeast 

corner of the State of Washington. It is the only Washington-based bank w ithin 

40 miles and is one of only tw o banks operating in Pend Oreille County, the 

other being a branch of the State's second largest bank located in the southern 

part of the county. Median household income in the county was 21.7 percent 

below the State median in 1972.

Approxim ately 85 road-miles separate the closest office of American from 

lone State and neither bank draws more than a nominal amount of business 

from the service area of the other. The proposed transaction, thus, would 

eliminate no significant existing com petition between the tw o banks.

American, under Washington law, may branch de novo in unbanked, incorporated areas of Pend Oreille County, as may lone State in Spokane County. Pend Oreille County contains three such areas, but all three lost population 

during the 1960s and the largest presently has 307 inhabitants. The only such 

area in Spokane County has a population of 48. None of these areas is likely to 

be attractive for de novo branching purposes in the foreseeable future.

Commercial banking is concentrated to a high degree in the State of Washington, w ith fiv/e banks having more than 76 percent of the deposits held by all 

83 of this State's commercial banks as of June 30, 1973. American by the 

proposed transaction would increase its ranking from 25th largest commercial 

bank in the State to 23rd largest. It would, however, hold only 0.3 percent of 

the State's total commercial bank deposits.

The Board of Directors, fo r the reasons stated, is of the opinion that the 

proposed transaction would not, in any section of the country, substantially 

lessen com petition, tend to create a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. Both financial and 

managerial resources of the resulting bank would be adequate for the business 

it would conduct. Future prospects of the resulting bank are considered favorable.

Convenience and Needs o f the Communities to be Served. The proposed 

transaction would have no perceptible impact on American's present trade 

area. In northern Pend Oreille County, however, the only commercial bank 

office in the area, which recently had only 18 percent of its total assets in 

loans, would be operated under less restrictive lending policies than those 

prevailing prior to the sale of the bank in May 1973 to stockholders and 

directors of American. In general, management of the resulting bank would be 

more responsive than prior management to the banking requirements of northern Pend Oreille County.

Based on the foregoing, the Board of Directors has concluded that approval 

Digitized for FRASER 

of the application is warranted.

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 73

Resources

(in

B a n kin g O ffic e s

th o u san d s 

o f d o lla rs)

I n

o p e ra tio n

T o be 

ope ra te d

Commercial Security Bank 225,401 12 13

Ogden, Utah

to purchase the assets and assume

the deposit liabilities o f

Orem State Bank 11,126 1

Orem

Summary report by Attorney General, March 7, 1974 

Commercial Security does not presently operate in Utah County. Its office 

nearest to Bank is located in Midvale, Salt Lake County, about 30 miles northwest of Orem. In view of the distance between the offices w ith several banking 

alternatives intervening, the proposed transaction would not appear to eliminate 

substantial existing competition.

Utah County and the communities of Orem (estimated population 30,000) 

and Provo (population exceeding 53,000) have recently experienced substantial 

economic and population growth.

Commercial banking in Utah County is highly concentrated. As o f June 30,

1972, the four largest banking organizations accounted fo r about 77.1 percent 

of total county deposits. Bank, w ith the largest share of deposits held by the 

3 banks serving Orem, ranked eighth among the 11 banks in the county. 

Though Commercial Security may not, under Utah law, branch into Orem, its 

parent holding company, Commercial Security Bancorporation, the State's 

fourth largest banking organization, could establish a de novo bank there. 

Moreover, as indicated above, prior to the filing of this application both Commercial Security and Bank applied fo r permission to establish branches in 

Provo, the county seat of Utah County, about 10 miles south of Orem. Thus, 

the proposed transaction may eliminate some potential com petition. However, 

it does not appear that the overall competitive effects of the transaction would 

be significantly adverse.

Basis fo r Corporation approval, April 26, 1974 

Commercial Security Bank, Ogden, Utah ("C om m ercial"), a State nonmember insured bank w ith total resources of $225,401,000 and IPC deposits 

of $139,771,000 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, Orem 

State Bank, Orem, Utah ("Orem Bank"), which has total resources of 

$11,126,000 and IPC deposits of $8,405,000. The sole office o f Orem Bank 

would be operated as a branch of Commercial, increasing the number of its 

offices to 13.

Competition. Commercial operates a total of 12 offices: 3 in Ogden and 1 in 

South Ogden, in Weber County; 4 in Salt Lake City, 1 in Midvale, and 1 in 

Murray, all in Salt Lake County; 1 in the tow n of Grantsville and 1 in the town 

of Tooele, both in Tooele County. Orem Bank, which was organized in 1957, 

operates its only office in the city of Orem in Utah County.

The city of Orem (1970 population 25,729, an increase o f 39.9 percent over 

Digitized 

the 1960 population) is located about 6 miles northwest of Provo (1970 popufor FRASER 

http://fraser.stlouisfed.org/ 

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

lation 53,131) and about 40 miles southeast of Salt Lake C ity. Orem is an 

increasingly im portant commercial center, and a very large regional shopping 

center which was recently opened there is attracting a substantial portion of 

the area's residents who form erly drove to Salt Lake C ity to shop. The largest 

industrial employer is a steel mill which employs about 5,000 persons. However, the Provo-Orem SMSA, which consists of Utah County (1970 population 

137,776, an increase o f 28.8 percent since 1960), has a level of household 

median income approximately 13 percent below the State average.

Orem Bank's market is considered to be all of Utah County. There are 11 

commercial banks operating 24 offices in Utah County and Orem Bank is the 

eighth largest, holding 3.8 percent of the market's total commercial bank IPC 

deposits. The 4 largest banks represented there hold 74.9 percent of such 

deposits and operate 17 offices. Commercial is not a com petitor in this market 

since it has no office in Utah County, and its office nearest to Orem is in 

Murray, 33 miles northwest. Accordingly, no significant existing com petition 

between the tw o banks would be eliminated by the proposed transaction.

Orem Bank may legally branch de novo into Salt Lake City but this possib lity is considered unlikely in view of the distance involved, its relatively small 

size, and the number of much larger banking organizations which already com ­

pete there. Orem Bank may not branch de novo into Ogden, where Commercial 

is headquartered, nor could Commercial branch de novo into Orem, where 

Orem Bank and Wasatch Bank are headquartered. Both Commercial and Orem 

Bank have pending applications, however, to establish de novo branches in 

Provo, about 6 miles south of Orem. Thus, assuming both branches are approved, the consummation proposal would foreclose a potential for increased 

com petition between the tw o banks in the local market in the future. However, 

in view of the larger banks already represented in Utah County and the small 

share of the market presently held by Orem Bank or likely to be developed in 

these tw o new branches, the proposed acquisition should have no substantial or 

significant effect on the commercial bank structure o f the county in the foreseeable future.

Commercial banking in the State of Utah is concentrated in its three largest 

banking organizations, which held 60.6 percent of the total deposits held by all 

insured commercial banks in the State. The largest share of such deposits is 

held by First Security Corporation, Salt Lake C ity, w ith 29.4 percent. The 

next tw o largest organizations hold 17.0 percent and 14.2 percent. Commercial 

is the fourth largest commercial bank in the State w ith 6.9 percent of such 

deposits and Orem Bank holds only 0.4 percent. A fter consummation of this 

proposal, the resulting bank would still be much smaller than the three largest 

organizations w ith only 7.3 percent o f total deposits. The commercial bank 

structure of the State would obviously remain virtually unchanged.

Under the circumstances, the Board of Directors is of the opinion that the 

proposed transaction would not, in any section o f the country, substantially 

lessen com petition, tend to create a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. Commercial has satisfactory financial and managerial resources, as would the resulting bank. Future 

prospects fo r the resulting bank are favorable.

Convenience and Needs o f the Community to be Served. This proposed 

transaction would not have any perceptible effect in areas where Commercial

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 75

presently does business. Customers of Orem Bank, however, would benefit 

from the wider range of commercial bank services that would be offered by the 

resulting bank, including trust services, residential mortgage loans, credit card 

services, and computer services. In addition, the present lending lim it o f Orem 

Bank, $45,000, would be increased to over $2,000,000. While similar services 

are now offered by other commercial bank offices in the Orem area, consummation of this proposed transaction should stimulate com petition in Utah 

County by providing an alternative source for such services.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources 

(in 

thousands 

o f d o lla rs )

B a n kin g O ffic e s

I n

o p e ra tio n

T o be 

o pe ra te d

Old Stone Trust Company

Providence, Rhode Island 

(change title to Old Stone Bank)

to acquire the assets and assume

the deposit liabilities o f

103,301 31 31

Old Stone Savings Bank

Providence

688,459 31

Summary report by A ttorney General, October 15, 1973 

In view o f the longstanding control of Trust Company by Savings Bank, it 

does not appear that the transaction would eliminate any significant com petition between them. The effect of the transaction is to convert Savings Bank to 

a commercial bank. Commercial banking in Rhode Island is dominated by tw o 

Providence banks, Industrial National Bank and Rhode Island Hospital Trust 

National Bank. The resulting bank could offer significant new com petition to 

these leaders.

Basis fo r Corporation approval, May 15, 1974 

Old Stone Trust Company, Providence, Rhode Island ("Trust Com pany"), a 

State nonmember insured bank w ith total resources o f $103,301,000 and total 

IPC deposits of $58,050,000, has applied, pursuant to Section 18(c) and other 

provisions o f the Federal Deposit Insurance Act, fo r the Corporation's prior 

consent to acquire the assets of, and assume the liability to pay deposits made 

in, Old Stone Savings Bank, Providence, Rhode Island ("Savings Bank"), an 

insured mutual savings bank w ith total resources of $688,459,000 and total 

IPC deposits o f $621,856,000, under Trust Company's charter and w ith the 

title, "O ld Stone Bank." Both banks presently operate in shared quarters at 31 

locations and the resulting bank would continue to operate from these same 

locations.

Competition. The State of Rhode Island had a 1970 population of 949,723,

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

an increase of 10.5 percent over 1960's 859,488. Although 1972 household 

median income fo r the State was $8,946 (the national figure was $8,605), the 

State's economy is not dynamic and it faces uncertain prospects for future 

development clue, in large measure, to planned curtailments in the operations 

of the United States Navy, the State's largest single employer. Efforts are under 

way to attract new industry and business to the State and the economic outlook depends largely on the success of such efforts.

There is no com petition whatever between the tw o banks. Trust Company 

and Savings Bank share common quarters at their Providence main office and 

at each of their 30 branches located throughout Rhode Island. Trust Company 

is w holly owned by Old Stone Corporation, a one-bank holding compnay 

which is in turn w holly owned by Savings Bank. Both banks also share the 

same management. Each bank offers banking services appropriate to its respective charter at all locations, but the combined operation presents a single face 

to the public w ithout distinction as to which bank w ill actually supply the 

services. The proposed transaction is therefore, in essence, an internal reorganization, the principal result of which would be the conversion of Savings Bank 

into a commercial bank. Furthermore, unlike the situation in other States 

which have acted to end director and officer interlocks between commercial 

banks and mutual savings banks, there appears to be little support for such a 

prohibition in Rhode Island, which has nine other affiliated groups similar to 

Old Stone. W ithout such a legislative mandate in Rhode Island to disaffiliate, 

the tw o banks are not likely to be competitors in the future. In short, the 

proposed transaction would not eliminate any existing com petition or any 

significant potential for future com petition between Trust Company and Savings Bank.

The resulting bank would hold approximately 16 percent of the total IPC 

deposits in Rhode Island held by all financial organizations which offer full 

service banking under one roof, the same aggregate percentage now held by 

Trust Company and Savings Bank as separate institutions. The difference 

would be that all of the assets and all of the deposits would be held under a 

commercial bank charter, thereby providing the resulting bank w ith the financial resources to compete more effectively than Trust Company alone w ith the 

State's tw o largest commercial banks, the $1.4-billion-deposit Industrial National Bank of Rhode Island and the $658-million-deposit Rhode Island Hospital Trust National Bank, fo r commercial and industrial loans and for wholesale banking business generally. This should intensify the com petition in Rhode 

Island fo r the business customer w ithout adversely affecting the present competition for th rift institution services.

Under the circumstances, the Board of Directors is of the opinion that the 

proposed transaction would not, in any section o f the country, substantially 

lessen com petition, tend to create a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. Trust Company 

and Savings Bank have satisfactory financial and managerial resources and satisfactory future prospects, as would the resulting bank.

Convenience and Needs o f the Community to be Served. Savings Bank 

presently pays less on regular passbook deposits and on time deposits than the 

ceiling rates authorized by Federal regulation for mutual savings banks. Since 

the rates now being paid fall w ithin the ceiling rates authorized fo r commercial

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 77

banks, depositors of Savings Bank w ill experience no change in rate after the 

proposed transaction takes place. A ll services presently offered by either Trust 

Company or Savings Bank w ill be continued by the resulting bank at all present 

locations, while a higher lending lim it ($3 m illion as compared w ith $1 m illion) 

w ill be available fo r commercial and industrial loans. Under the circumstances, 

the proposed consolidation should not change significantly the public convenience and needs now being served by either Savings Bank or Trust Company 

separately. What changes there are may benefit certain commercial loan customers and this weighs in favor o f approval.

The Board o f Directors has carefully considered the several submissions of 

the National Association o f Mutual Savings Banks opposing the proposed transaction and urging the Corporation to deny the instant application. Briefly 

stated, the Association opposes any consolidation in which some or all of the 

surplus funds accumulated by Savings Bank over the years are distributed to 

persons who are Savings Bank depositors as o f a specified record date, since the 

distribution results in a "w in d fa ll" return, either in cash or Old Stone Corporation stock, which was never anticipated at the time of deposit. The proposed 

distribution, however, conforms w ith Rhode Island law, has received all necessary State approvals, and has withstood judicial scrutiny in litigation in the 

State courts of Rhode Island. It appears, moreover, not to violate any existing 

FDIC regulation, including specifically Part 329 of the Corporation's regulations which establishes the maximum rates of interest which may be paid on 

deposits held at mutual savings banks. Furthermore, since both Trust Company 

and Savings Bank are insured by the Corporation at the present time, the 

proposed consolidation under Trust Company's charter would have no impact 

whatever on the Corporation's deposit insurance fund.

In the absence of any explicit authorization or direction from the Congress to 

consider the "w in d fa ll" aspect of the proposed transaction, the Board of Directors believes that fairness to the applicants requires it to follow past precedents 

in which, after finding that normal Bank Merger A ct standards had been met, 

mutual savings banks have been allowed to consolidate w ith affiliated commercial banks despite the distribution of accumulated surplus to depositors of 

the mutual savings bank involved. See, e.g., the Corporation's approval of the 

acquisition by The Manchester Trust Company of Manchester, New Hampshire, 

of the assets and the deposit liabilities of Manchester Savings Bank, 1970 FDIC 

Annual Report, page 88, and the Corporation's approval of the acquisition by 

Berlin C ity Bank of the assets and the deposit liabilities of City Savings Bank of 

Berlin, Berlin, New Hampshire, 1974 FDIC Opinion B-2 (decided January 29, 

1974). The Board of Directors notes further that the "conversion" of mutual 

savings banks to commercial bank status, either directly or by merger, consolidation or sale o f assets and liabilities, appears to be authorized in at least 9 of 

the 17 States where such banks exist, regardless of any resulting distribution of 

accumulated surplus to depositors of record on a particular date.

Under all the circumstances, the Board of Directors believes it inappropriate 

for the Corporation to assert an overriding Federal interest in preventing such 

conversions where Congress itself has been silent on the subject and has not 

included mutual savings banks in the moratorium on such conversions presently applicable to federally insured savings and loan associations.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

R esources 

(in 

th o u san d s 

o f d o lla rs )

B a n k in g O ffic e s

In

o p e ra tio n

T o be 

o pe ra te d

Home Savings Bank of Upstate New York

Albany, New Y ork

178,749 7 8

to merge with

Hudson Savings and Loan Association

Hudson

10,933 1

Summary report by A ttorney General, February 19, 1974 

Hudson Savings' office in Hudson (population 8,900) is located about 20 

miles south of Home Savings' nearest office. Thus, it appears that the proposed 

transaction would not eliminate substantial existing com petition. And in view 

of the small absolute size of Hudson Savings, we conclude that the proposed 

merger w ill not eliminate substantial potential com petition.

Basis fo r Corporation approval, May 29, 1974 

Home Savings Bank of Upstate New Y ork, Albany, New Y ork ("Hom e 

S a v in g s "), an insured mutual savings bank w ith total resources of 

$178,749,000 and total deposits o f $167,295,000, has applied, pursuant to 

Section 18(c) and other provisions of the Federal Deposit Insurance Act, for 

the Corporation's prior consent to merge w ith Hudson Savings and Loan Association, Hudson, New Y ork ("S & L "), a federally insured, State-chartered savings and loan association w ith total resources of $10,933,000 and total deposits of $9,412,000. The institutions would merge under the charter and title 

of Home Savings and, as an incident to the merger, the sole office of S&L 

would become a branch of the resulting bank, increasing to eight the number 

of its offices.

Competition. Home Savings operates a total of seven offices: its main office 

and one branch in the city of Albany, one branch each in the suburban towns 

of Colonie arid Guilderland, tw o branches in Washington County and one 

branch in Rensselaer County. The bank acquired the three latter branches 

during 1971 and 1974 by merging three State-chartered savings and loan associations. Under present law, Home Savings may acquire by merger any number 

of branches throughout the Fourth Banking District, a 15-county region in 

northeastern New York State, but it may establish de novo branches w ithin the 

district at the rate of only one such branch each year. Commencing January 1, 

1976, mutual savings banks w ill be permitted to branch statewide subject to 

the continuing lim itation of one de novo branch each year.

S&L maintains its only office in Hudson, Columbia County, New York. Its 

primary service area comprises that section of central-western Columbia County lying east of the Hudson River w ithin 15 miles of Hudson. This is a 

residential and industrial area whose estimated population increased some 5.8 

percent during the 1960s to 37,800. The 1972 median household buying level 

in Columbia County ($8,407) was 10.8 percent below that of the State as a 

whole. S&L had approximately 8 percent of the deposits held on June 30,

1973, by the th rift institution offices in this market. The Hudson C ity Savings 

Institution, the eighth largest mutual th rift institution in the Fourth Banking 

District, has its main office and tw o branches in S&L's local market, the only 

Digitized 

other th rift institution offices in this market.

for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 79

S&L's office is located some 40 road-miles south of the main office of 

Home Savings, its closest to S&L. There are reported to be a few depositors 

and no borrowers common to both institutions and their service areas do not 

overlap to any appreciable extent. Because o f limited financial and managerial 

resources, S&L would find unfeasible the establishment of de novo branches in 

Home Savings' present market, while the latter, limited by law to one de novo

branch a year, would find other locations both in the Fourth Banking D istrict 

and, after 1975, in other parts of the State more attractive for de novo expansion than S&L's present market, w ith its below average buying levels and no 

substantial population growth during recent years. It is thus indicated that 

neither com petition existing between the two institutions nor a significant 

potential for increased com petition between them in the future through de

novo branching would be eliminated by their proposed merger.

Home Savings is the sixth largest mutual th rift institution in the Fourth 

Banking District, w ith approximately 6.1 percent of the deposits held by all 

offices of such institutions in the district. S&L holds 0.3 percent of such 

deposits.

The Board of Directors is of the opinion that the proposed merger would 

not, in any section of the country, substantially lessen com petition, tend to 

create a monopoly, or in any other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Financial and managerial resources of each institution are satisfactory, as would be those of the 

resulting bank. Its future prospects appear to be favorable.

Convenience and Needs o f the Community to he Served. The proposed 

merger would introduce day-of-deposit-to-day-of-withdrawal accounts, Savings 

Bank Life Insurance, Series E bonds, and travelers checks at the S&L location. 

The resulting bank, operating under a more liberal lending policy and w ith a 

greatly expanded lending capability, should provide more effective com petition 

in the area of real estate financing to the other savings bank and commercial 

banks in S&L's local market.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources 

( i n

B a n k in g O ffic e s

th ousands 

o f d o lla rs)

I n

o p e ra tio n

T o be 

ope ra te d

The Chartered Bank of London

San Francisco, California

59,385 3 14

to merge with

Liberty National Bank

San Francisco

101,379 11

Summary report by A ttorney General, February 19, 1974 

Chartered Bank is headquartered in San Francisco, where Liberty Bank also 

maintains its main office and five branch offices. Thus, the proposed merger

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

will eliminate some existing com petition between the parties in the San Francisco area. However, it does not appear that the proposed transaction w ill 

result in any substantial increase in banking concentration in that area.

We conclude that the proposed merger would not have a substantial competitive impact.

Basis fo r Corporation approval, May 31, 1974

The Chartered Bank of London, San Francisco, California ("Chartered 

B a n k "), a State nonmember insured bank having total resources of 

$59,385,000 and total IPC deposits of $39,281,000, has applied, pursuant to 

Section 18(c) and other provisions of the Federal Deposit Insurance A ct, fo r 

the Corporation's prior consent to merge w ith Liberty National Bank, San 

Francisco, California ("L ib e rty N ational"), which has total resources of 

$101,379,000 and total IPC deposits of $85,531,000. The banks would merge 

under the charter and title of Chartered Bank. As an incident to the transaction, the 11 existing offices and 1 approved but unopened office of Liberty 

National would become branches of the resulting bank, increasing the number 

of its offices to 15.

Competition. Chartered Bank operates its main office in San Francisco, a 

branch in Oakland about 10 miles east of the main office, and a branch in Los 

Angeles about 400 miles south of San Francisco. In the past, Chartered Bank, 

which is affil ated w ith a major British bank, has emphasized international 

trade, and its three offices were established convenient to large and im portant 

port facilities. San Francisco (1970 population 715,674) is the economic and 

administrative center of the San Francisco-Oakland Metropolitan Area and of 

Northern California. Commercial activity includes finance, insurance, real estate, wholesale and retail sales, and shipping.

Liberty National's main office is also in San Francisco, where it operates a 

total of five offices and holds 0.4 percent of the area's total IPC deposits. One 

branch is in Los Altos, about 35 miles south o f San Francisco in Santa Clara 

County, and five branches are operated in San Diego County in the southern 

part of the State. In addition to its 11 existing offices, Liberty National has an 

approved but jnopened branch in San Bruno, about 12 miles from San Francisco in San Mateo County. Neither of the merging banks has a significant 

market share in any local banking market it serves.

The proposed merger would have its most immediate and direct effect in 

San Francisco, which is the only area where the tw o banks involved compete 

directly to any degree. W ithin this area a total of 24 banks operate 189 offices 

and hold total IPC deposits of $8,941,221,000. Chartered Bank and Liberty 

National have a very m inor share of these deposits, holding only 0.3 percent 

and 0.4 percent, respectively. Even though their head offices are located less 

than four blocks apart in the financial district of the city, there are numerous 

banking offices between them, including head offices of three of the four 

largest banks in the State. Records of the tw o banks indicate no common loan 

customers and only 33 common deposit accounts totaling about $100,000. 

Liberty National has always emphasized retail lending, and 82 percent of its 

loan account consists of real estate and consumer loans. Chartered Bank's loan 

portfolio consists prim arily of commercial credits generated by its international 

department. In view o f the foregoing, it appears that the proposed merger 

would eliminate no significant existing com petition between the tw o banks.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 81

California law permits statewide de novo branching, but in view o f Chartered Bank's lack of experience in retail banking and its emphasis on international financing, the possibility that present management would consider de

novo branching into the service areas of Liberty National appears remote. 

Liberty National could also branch into the service areas of Chartered Bank, 

but because of the cost involved, its low capital position, and the very competitive banking situation already existing in these market areas, it is considered unlikely that it would consider such central-city expansion in the foreseeable future. While the proposed merger would foreclose some eventual 

possibility of increased com petition between the tw o banks in the future, no 

competitive significance can be attached to that result in view of the small 

market shares involved and the vigorous com petition the resulting bank would 

face even if the proposed merger is consummated.

Commercial banking in the State o f California is highly concentrated w ith 

the 10 largest banking organizations holding 87.4 percent of all commercial 

bank IPC deposits. A fte r consummation of this proposed merger, the resulting 

bank would hold only 0.2 percent of such 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 

com petition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Liberty National's 

capital is low, but both banks have satisfactory managerial resources for the 

business they presently conduct. Financial and managerial resources of the 

resulting bank would be acceptable and its future prospects appear favorable.

Convenience and Needs o f the Community to be Served. Consummation of 

the proposed merger would result in a larger commercial bank w ith higher 

lending lim its and expanded services to offer to present customers of both 

banks. Liberty National customers would benefit from the export-im port 

financing and diverse commercial lending services which the resulting bank 

would offer, while customers of Chartered Bank would have more convenient 

access to the usual retail services and to trust services.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

R esources

(in

th o u san d s 

o f d o lla rs)

B a n k in g O ffic e s

I n

o p e ra tio n

T o be 

o p e ra te d

Citizens and Southern Bank of Dublin

Dublin, Georgia

42,372 2 3

to purchase the assets and assume

the deposit liabilities o f

The Rentz Banking Company

Rentz

2,982 1

Summary report by A ttorney General, January 11, 1974 

Both banks are located in Laurens County, but are separated from each 

other by about 12 miles. No other banking offices are located in the intervening area. Both banks draw some business from the areas prim arily served by

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

the other. Duolin Bank derives a relatively small proportion of its deposits and 

loans from Rentz Bank's primary service area, but such deposits and loans 

equal approximately 40 percent of Rentz Bank's total deposits and loans. 

Thus, there is some com petition between the tw o banks which would be elim inated by the merger.

Seven commercial banks operate in Laurens County. Dublin Bank is the 

largest of the seven, holding 42 percent of total county deposits. Rentz Bank is 

the fifth largest, holding 3.7 percent. Thus, Dublin Bank's already large share 

of county deposits would increase to 45.7 percent as a result of the merger. We 

conclude that the proposed transaction would have at least some adverse competitive effect

Basis fo r Corporation approval, May 31, 1974

Citizens and Southern Bank o f Dublin, Dublin, Georgia ("C&S D ublin"), an 

insured State nonmember bank w ith total assets of $42,372,000 and IPC deposits of $27,665,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, fo r the Corporation's prior consent to purchase the assets of, and assume the liability to pay deposits made in, 

The Rentz Banking Company, Rentz, Georgia ("Rentz Bank"), having total 

assets of $2,982,000 and IPC deposits of $2,382,000. As an incident to the 

transaction, C&S Dublin would operate the sole office of Rentz Bank as a 

branch, thereby increasing to three the number of its offices.

Competition. C&S Dublin presently operates its main office in Dublin and 

one branch in East Dublin, both of which are located in Laurens County, 

Georgia. Dublin, the county seat, is located in the north-central part of the 

county and is the center of commercial and industrial activity fo r the county, 

which is becoming less dependent upon agriculture. Because of this, the local 

banking market in which C&S Dublin operates may be viewed as all of Laurens 

County. Laurens County in 1970 had a population of 32,738, w ith only slight 

growth reported over its 1960 population. In 1972, the median household 

income for Laurens County was $5,399, about 30 percent below the comparable figure ($7,646) for the State as a whole.

Rentz Bank has its sole office in Rentz, a small town of 392 persons, also in 

Laurens County, about 12 miles southwest of Dublin. There are only a few 

commercial establishments located in Rentz and the economy of the surrounding area is based prim arily on agriculture-related activities. There is no common 

ownership or management between C&S Dublin and Rentz Bank.

There are 7 banks operating 10 offices in this sparsely populated, lowincome county. Total commercial bank IPC deposits totaled slightly over $60 

m illion as of June 30, 1973. C&S Dublin is the largest of these local banks 

while Rentz Bank is one of the three smallest. Although some existing com petition between the tw o banks would be eliminated by their proposed merger, the 

dollar amounts are not substantial. Moreover, the addition of Rentz Bank's 

deposits and loans to C&S Dublin's totals would constitute a de minimis addition to existing concentration levels in Laurens County and would not perceptib ly affect the commercial bank structure of the market, particularly in view 

of Rentz Bank's conservative management policies and its less than vigorous 

stance as a com petitor (total loans at Rentz Bank, exclusive of Federal funds 

sold, are less than 40 percent of assets, and the institution does not offer 

passbook savings accounts). Five banks in any event would continue to be

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 83

available as alternative sources of banking services if customers of the resulting 

bank found themselves dissatisfied fo r any reason.

Furthermore, the proposed merger should not eliminate any significant 

potential fo r increased com petition between C&S Dublin and Rentz Bank 

through de novo branching. C&S Dublin clearly has de novo branching capabilities, but Laurens County is not an attractive market for this type of expansion 

in view o f its relatively static population, low income levels, and the existing 

number of commercial bank offices (one fo r each 3,274 people). Rentz Bank, 

w ith limited resources, aging management, and 60 years experience as a unit 

bank, is most unlikely to undertake any such expansion.

Citizens and Southern Holding Company, Savannah, Georgia, owns 93.6 

percent of the outstanding stock of C&S Dublin. The holding company, in 

turn, is 100 percent owned by The Citizens and Southern National Bank, 

Savannah, which controls nine banks w ith deposits totaling $2,132,242,000. 

This represents 20.3 percent of the total commercial bank deposits for the 

State, and makes The Citizens and Southern National Bank the largest banking 

organization in the State. Consummation of the proposed merger would constitute a de minimis change in these figures.

Under the circumstances here presented, where realistic merger alternatives 

are limited by the State of Georgia's countywide branching laws, the Board of 

Directors is of the opinion that the proposed merger would not, in either 

Laurens County or the State of Georgia, substantially lessen com petition, tend 

to create a m onopoly, or in any other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Both o f the participating banks have adequate financial and managerial resources, although Rentz 

Bank has a management succession problem since its two senior officers are of 

advanced age and have indicated a desire to retire. A merger w ith C&S Dublin 

would solve that problem. Future prospects fo r the resulting bank would be 

favorable.

Convenience and Needs o f the Community to be Served. The proposed 

merger would have little effect on the Dublin area, but present customers of 

Rentz Bank would have access to a variety o f services of The Citizens and 

Southern National Bank, which are available to customers of all affiliate banks. 

Services offered which are not presently available to customers of Rentz Bank 

include trust services, passbook savings accounts, and safe deposit services. The 

resulting bank should also be more w illing to undertake residential mortgage 

lending and installment loan services.

Based on the foregoing, the Board of Directors has concluded that approval 

of the proposed merger is warranted.

R esources

(in

th o u san d s 

o f d o lla rs)

B a n k in g O ffic e s

I n

o p e ra tio n

T o be 

o pe ra te d

Bank of Mississippi

Tupelo, Mississippi

164,336 23 25

to merge with

Grenada Trust and Banking Company

Grenada

14,636 2

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Summary report by A ttorney General, May 6, 1974 

The nearest offices o f the parties are approximately 40 miles apart. Therefore, it does riot appear that the proposed merger would eliminate substantial 

existing com petition.

Bank of Mississippi is the largest bank which may branch de novo into 

Grenada. (Mississippi law permits commercial banks to branch de novo w ithin a 

100-mile radius of the headquarters office.) Grenada Trust, the smaller of two 

banks presently operating in Grenada County, holds approximately 27 percent 

of total coun:y deposits. Thus, the proposed merger may eliminate some potential com petition between the parties. However, the relatively small absolute 

size of Grenada Trust and the existence o f other potential entrants somewhat 

diminish the effect on potential com petition.

Basis fo r Corporation approval, May 31, 1974 

Bank of Mississippi, Tupelo, Mississippi, an insured State nonmember bank 

w ith total resources of $164,336,000 and IPC deposits of $127,762,000, has 

applied, pursuant to Section 18(c) and other provisions of the Federal Deposit 

Insurance Act, fo r the Corporation's prior consent to merge under its charter 

and title w ith Grenada Trust and Banking Company, Grenada, Mississippi 

("Grenada T rust"), which has total resources of $14,636,000 and IPC deposits 

of $12,300,000. As an incident to the merger, Bank of Mississippi would 

operate the 2 offices of Grenada Trust as branches, thereby increasing the 

number of its offices to 25.

Competition. Bank o f Mississippi operates offices in nine counties of northeastern Mississippi. It derives a significant amount of business from these counties and from Union County as well. These 10 counties comprise the bank's 

primary trade area. The economy of this region, historically agricultural, has 

become fairly well balanced between agriculture and light industry during the 

past decade. The population of these 10 counties increased during the 1960s 

by 9.3 percent and now totals 239,783— comparing favorably w ith the 1.8 

percent population increase of the State as a whole. Bank of Mississippi presently has no office in Grenada County.

Grenada Trust has its tw o offices in Grenada (population 9,944), the county 

seat and trading center of Grenada County (1970 population 19,854— up 7.8 

percent from 1960). Grenada County is largely an agricultural section of 

north-central Mississippi, although Grenada city contains a significant amount 

of industry. This county adjoins Calhoun County, a portion of Bank of Mississippi's primary trade area.

The area in which the competitive effects of the proposed merger would be 

most immediate and direct is basically Grenada County. Two commercial 

banks presently operate offices in the county. The $165.9-m illion Grenada 

Bank, third largest bank in the State, maintains tw o offices in the city of 

Grenada and holds two-thirds of the market's IPC deposits. Grenada Trust 

holds the balance of such deposits in its tw o offices. The respective market 

shares held by these tw o banks are likely to change in the near future upon the 

entry of a third com petitor into the market. The $52.2-m illion Peoples Bank of 

Mississippi, N.A., Union, recently received the necessary approvals to open a de

novo branch in the city of Grenada.

Bank of Mississippi's office nearest to Grenada Trust is in Vardaman, Calhoun County, about 37 road-miles to the east. The banks operate in separate

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 85

trade areas and there is no significant existing com petition which the proposed 

merger would eliminate.

There appears to be no significant potential fo r increased com petition between the tw o banks in the future through de novo branching if this proposed 

transaction is not consummated. Grenada Trust, in operation fo r more than 70 

years, has its only branch in close proxim ity to its main office and would be 

unlikely to enter de novo the market of Bank o f Mississippi because of its 

limited financial and managerial resources, the distances involved, and the competition it would encounter. Although Bank of Mississippi may legally establish 

de novo offices in Grenada County and clearly has the capacity to do so, it is 

unlikely to find such entry particularly attractive in view of the recent approval 

of a third bank and a fifth office in that market. Further, there are a number of 

other potential entrants if the market becomes attractive fo r additional banking offices.

In its maximum potential market under State law— an area w ithin a 100-mile 

radius of Tupelo— Bank of Mississippi controls 11.1 percent of aggregate IPC 

deposits held on June 30, 1973, by all offices o f the 71 commercial banks 

presently represented therein. The proposed merger would increase this share 

to 12.2 percent. Statewide, Bank o f Mississippi holds 3.0 percent of aggregate 

commercial bank IPC deposits. The resulting bank would hold 3.2 percent of 

such deposits. The proposed merger, in view o f this data, appears unlikely to 

affect adversely the structure of commercial bank com petition in any relevant 

market.

Based on the foregoing, the Board of Directors has concluded that the 

proposed merger between Bank of Mississippi and Grenada Trust would not, in 

any section of the country, substantially lessen com petition, tend to create a 

monopoly, or in any other manner be in restraint o f trade.

Financial and Managerial Resources; Future Prospects. Both parties to the 

proposed merger have adequate financial and managerial resources, as would 

the resulting bank. Future prospects appear favorable for the resulting bank.

Convenience and Needs o f the Community to be Served. The merger would 

provide Grenada County w ith the full services of one o f the State's major 

commercial banks. An aggressive management operating w ith a lending lim it in 

excess of $1 m illion should stimulate com petition in this market. The resulting 

bank would offer trust, data processing, and investment services fo r the first 

time at the Grenada Trust locations, and would provide a convenient alternative source fo r such services in the market.

The Board of Directors, accordingly, has concluded that approval of the 

application is warranted.

Resources 

( in

B a n k in g O ffic e s

th ousands 

o f d o lla rs )

I n

o p e ra tio n

T o be 

o pe ra te d

City Bank 28,959 1 2

St. Louis, Missouri

to acquire the assets and assume

the deposit liabilities o f

Central West End Bank 22,488 1

St. Louis

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Summary report by Attorney General, March 7, 1974 

C ity Bank and Central Bank are situated about one-half mile apart in the 

western area of the city of St. Louis. The proposed transaction, therefore, w ill 

eliminate existing com petition between the parties. However, it does not appear that the proposed transaction w ill substantially increase concentration in 

commercial banking in any relevant geographic market.

Basis fo r Corporation approval, May 31, 1974

City Bank, St. Louis, Missouri, a State nonmember insured bank w ith total 

resources of $28,959,000 and total IPC deposits of $21,543,000, has applied, 

pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior w ritten consent to acquire the assets of, 

and assume the liability to pay deposits made in, Central West End Bank, St. 

Louis, Missouri ("C entral"), a State member bank w ith total resources of 

$22,488,000 and total IPC deposits of $15,977,000, under the charter and 

w ith the title of City Bank. The only office of Central would be operated as a 

facility of the resulting bank.

Competition. City Bank is a unit bank located in the Central West End 

section of St. Louis. It is affiliated through common ownership w ith the 

$60.3-million-deposit American National Bank in St. Louis (5.2 miles south of 

C ity Bank) and the $36.1-million-deposit The Brentwood Bank, Brentwood, 

Missouri (5 miles west of City Bank). Central is also a unit bank located in the 

Central West End section of St. Louis.

St. Louis c ty had a 1970 population of 622,236, which is a 17.0 percent 

decline from 750,026 in 1960. St. Louis County outside of the city, however, 

had a population increase of 35.3 percent during the like period to 951,671. 

The other counties in the St. Louis, Missouri-Illinois SMSA also experienced 

significant population gains— ranging from 8.6 percent in St. Clair County, 

Illinois to 75.5 percent in St. Charles County, Missouri. This out-migration 

from St. Louis city is largely attributable to spreading urban blight in many of 

its residential and commercial sections. The downtown section o f the city 

remains the financial center of the metropolitan area, however, and St. Louis 

retains a diversified manufacturing and industrial economy upon which many 

residents of St. Louis County depend for employment. The 1972 median 

household income fo r St. Louis city was $7,193 compared to $11,108 fo r St. 

Louis County and $7,664 fo r Missouri.

Although both City Bank and Central are in the Central West End section of 

St. Louis, the immediate area surrounding each is radically different. In City 

Bank's area, active com m unity associations representing relatively affluent 

residents and the close proxim ity of the Washington University Medical Center 

have served to stabilize the area and stem the spread of blight. Central, how ­

ever, is located in an area which is in an advanced state of deterioration and 

prospects for improvement are not favorable.

Central is situated about 0.5 mile north of C ity Bank and presently there 

are no other banks located w ithin 1 mile of either of them. (The $39-m illiondeposit Mound City Trust Company has an approved but unopened facility to 

be located 0.4 mile south of City Bank.) The areas prim arily served by City

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 87

Bank and Central appear to overlap, and the proposed transaction would elim inate some existing com petition between them. This existing com petition is not 

considered significant, however, in view of the relatively small size of both 

participating banks and of the resulting bank, the relatively small market shares 

that Central and City Bank have in the city and county of St. Louis banking 

market (0.4 percent and 0.5 percent, respectively), and the presence of numerous large banks in the market which are easily accessible by public transportation and good roads.

The potential fo r increased com petition between City Bank and Central as a 

result of de novo branching is minimal. Missouri law permits only two detached 

facilities, both of which must be located w ithin the limits of the city in which 

the main banking office is located. Further, the powers of these facilities are 

limited, principally by a prohibition against extending credit. In view of the 

unattractiveness o f Central's area, it is unlikely that City Bank, or any other 

bank, would choose to locate a de novo facility there. As far as Central is 

concerned, there are indications that in the absence of acquisition of Central 

by another bank, the control owners probably would opt for its voluntary 

liquidation, which would leave the area w ithout a banking office. The proposed 

transaction would therefore eliminate no significant potential com petition between City Bank and Central.

In the city and county of St. Louis there are 79 banks operating 118 offices 

w ith aggregate bank deposits of $5,182 m illion. The resulting bank's share (0.9 

percent) in this market, combined w ith its two affiliates, would total only 2.7 

percent. By contrast, the largest banking organization in the market is a holding 

company controlling tw o banks w ith 18.3 percent of the commercial bank 

deposits while the four largest banking organizations have 45.8 percent of such 

deposits.

If consideration were given to the position of the resulting bank and its 

affiliates in the entire St. Louis SMSA, these three banks would have an even 

less significant 2.1 percent of total commercial bank deposits. It is apparent 

that the proposed transaction would have no significant effect on the structure 

of commercial banking in any relevant area.

Under these circumstances, the Board of Directors is of the opinion that the 

proposed transaction would not, in any section o f the country, substantially 

lessen com petition, tend to create a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. The financial and 

managerial structures of City Bank and Central are largely complementary and 

should serve to produce a stronger resulting bank whose future prospects 

would be satisfactory.

Convenience and Needs o f the Community to be Served. Central's customers would benefit from the proposed transaction by an increase in the rate 

of interest paid on savings deposits from 3 percent to 4 percent. In addition, a 

very conservatively operated bank would be replaced by an office of a more 

aggressively operated institution which has assisted in the past in upgrading the 

area in which it is located. The proposed transaction would also keep open a 

banking office which otherwise eventually would probably be closed, to the 

detrim ent of the local neighborhood.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

R esources 

(in 

th o u san d s 

o f d o lla rs)

B a n k in g O ffic e s

I n

o p e ra tio n

T o be 

o pe ra te d

The American Bank of Central Ohio

Harrisburg, Ohio

17,069 3 4

to acquire the assets and assume

the deposit liabilities o f

Citizens Savings and Loan Company

Columbus

14,932 1

Summary report by Attorney General, May 30, 1973 

The closest offices of the parties to this transaction are about 7 miles apart. 

The application indicates that American Bank plans to establish additional 

offices in downtown Columbus, where Citizens is located. Although the parties 

may compete to a limited extent in the greater Columbus area for certain types 

of deposits and loans, their market shares in any appropriate market would be 

very small, anc no significant increase in concentration would occur as a result 

of the proposed transaction.

We conclude that the proposed transaction would have no adverse com petitive effect.

Basis fo r Corporation approval, May 31, 1974 

The American Bank of Central Ohio, Harrisburg, Ohio ("A m erican"), having 

total resources of $17,069,000 and IPC deposits o f $12,912,000, has applied, 

pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, fo r the Corporation's prior consent to acquire the assets of, and 

assume the liability to pay deposits made in, Citizens Savings and Loan Company, Columbus, Ohio ("Citizens S & L "), a federally insured stock savings and 

loan association having total resources of $14,932,000 and IPC deposits of 

$13,594,000, under the charter and title of American, and to establish the sole 

office of Citizens as a branch of the resulting bank. Pursuant to Section 18(d) 

of the Federal Deposit Insurance Act, an application has also been filed for 

consent for American to establish a branch in the IBM Building, Fourth and 

Town Streets, Columbus, Ohio. If both proposals are approved, the resulting 

bank would have a total of five authorized offices.

Competition. American operates its main office in Harrisburg, a small com ­

m unity of 556 population about 15 miles southwest of downtown Columbus, 

the State capital. It has one branch w ithin the Columbus city limits about 8 

miles southwest of downtown and one branch in Grove C ity about 10 miles 

southwest of the center city. Citizens S&L operates its only office in downtown Columbus. A ll offices of both institutions are in Franklin County.

Columbus ( T970 population 540,025, up 14.6 percent from 1960) is in 

central Franklin County (1970 population 833,288, up 22.0 percent from 

1960), which is located in the approximate center of the State. The area has a 

diversified economy w ith heavy and light industry, service business, and State 

and Federal offices. The Ohio State University also makes an im portant contribution to the local economy. The 1972 median household income fo r 

Columbus was $8,531 while the figure fo r Franklin County was $9,200, compared to $9,094 fo r the State.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 89

There is no substantial com petition between American and Citizens S&L at 

the present time. Their closest offices are about 8 miles apart in the populous 

city of Columbus, and these locations are separated by numerous offices of the 

city's largest banks. In addition, American offers the usual commercial bank 

loan services while Citizens S&L has almost all of its loans in residential m ortgages. While both institutions offer such real estate loans, neither has more 

than a nominal share of the total of such loans outstanding in Franklin County. 

In competing for deposits, Citizens S&L offers the higher ceiling rates perm itted to savings and loan associations under Federal rate ceilings. The proposed transaction would not eliminate any significant existing com petition 

between American and Citizens S&L.

It is unlikely that increased com petition would develop between American 

and Citizens S&L in the foreseeable future. Although American has pending an 

application for a de novo branch in downtown Columbus only a few blocks 

from Citizens S&L, the overlap in loan and deposit services between the tw o 

institutions is minimal. Further, any potential com petition which may be elim inated by the proposed transaction is com petitively insignificant because of the 

dominant positions of the city's three largest commercial banks, which have 

numerous offices throughout the Columbus area, and the presence of numerous large savings and loan associations, five o f which have more than $100 

m illion each in deposits. Thus, fu lly adequate banking and th rift institution 

alternatives would remain.*

The proposed transaction would have no discernible effect on the structure 

of commercial banking or th rift institution banking because each of the participating institutions is o f only nominal significance in its respective line of 

commerce in Franklin County. As of June 30, 1973, American had only 0.6 

percent of the total deposits held by all commercial banks in the county, while 

the three dom inant banks had an aggregate of 92.6 percent of such total 

deposits. As of March 31, 1973, Citizens S&L apparently held less than one 

percent of the total th rift institution deposits in Franklin County.

Under the circumstances, the Board of Directors is o f the opinion that the 

proposed acquisition would not, in any section of the country, substantially 

lessen com petition, tend to create a m onopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. With the contem ­

plated addition of $1,400,000 in new capital funds, American and the resulting 

bank would have satisfactory financial and managerial resources and satisfactory future prospects.

Convenience and Needs o f the Community to be Served. The proposed 

transaction in the context of the Columbus banking market would have little 

impact on public convenience and needs, given the relatively insignificant market shares held by each institution. A somewhat larger commercial bank would 

offer additional com petition, however, to the larger banks already represented 

in the geographic market area.

Based on the foregoing, the Board o f Directors has concluded that approval 

of American's application to acquire the assets of, and to assume the liability

* F o r purposes o f assessing th e c o m p e titiv e im p a c t o f th is p rop o sa l u n d e r th e B ank M erger 

A c t, th e B oard o f D ire c to rs has ig n o re d th e a c q u is itio n o f s to c k c o n tro l o f C itiz e n s S & L 

b y an associate o f A m e ric a n 's c o n tro l o w n e rs in M ay 1 972.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

to pay deposits in, Citizens S&L is warranted. In so acting, the Board of 

Directors expresses no opinion as to whether the May 1, 1972, acquisition by 

an associate of American's control owners of stock control of Citizens S&L 

w ithout the prior approval of the Federal Savings and Loan Insurance Corporation or the Board of Governors of the Federal Reserve System violated any 

provision of law applicable to such an acquisition.

The Board of Directors has also reviewed separately American's application 

for the Corporation's consent to the establishment of a branch office in the 

IBM Building, Fourth and Town Streets, Columbus, has found favorably (with 

the contemplated addition of $1,400,000 in new capital funds) on each of the 

statutory factors required to be considered, and hereby grants the requested 

consent.

R esources

(in

th o u san d s 

o f d o lla rs )

B a n kin g O ffic e s

In

o p e ra tio n

T o be 

o pe ra te d

Commonwealth Bank and Trust Company

Muncy, Pennsylvania

107,651 13 14

to merge with

Citizens Bank of Renovo

Renovo

5,404 1

Summary report by Attorney General, May 3, 1974 

Commonwealth Bank and Citizens Bank are headquartered about 66 miles 

apart and the nearest offices o f the tw o banks are separated by about 43 miles. 

There are several banking offices in the intervening area. It appears that the 

proposed acquisition would not eliminate substantial existing competition. 

And in view of the modest size o f the bank to be acquired and the existence of 

other potential entrants, we conclude that the proposed transaction w ill not 

eliminate substantial potential com petition.

Therefore, we conclude that the proposed transaction would not have a 

substantial competitive impact.

Basis fo r Corporation approval, May 31, 1974 

Commonwealth Bank and Trust Company, Muncy, Pennsylvania ("C om ­

m onwealth"), a State nonmember insured bank w ith total resources of 

$107,651,000 and total IPC deposits o f $84,194,000, has applied, pursuant to 

Section 18(c) and other provisions of the Federal Deposit Insurance Act, for 

the Corporation's prior w ritten consent to merge w ith Citizens Bank of Renovo, Renovo, Pennsylvania ("C itizens"), a State nonmember insured bank 

w ith total resources of $5,404,000 and total IPC deposits of $4,725,000. The 

banks would merge under the charter and title of Commonwealth and, as an 

incident to the merger, the sole office of Citizens would become a branch of 

the resulting bank, increasing the number of its authorized offices to 15.

Competition. Commonwealth operates 13 offices in 4 o f the 10 counties in 

which it may legally branch or merge under Pennsylvania law. Its main office 

and three branches are in Lycoming County, two branches are in Bradford

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 91

County, tw o are in Potter County, and five are in Tioga County. Commonwealth also has approval for an additional branch in Lycoming County. A ll 

four of these counties are in north-central Pennsylvania and their combined 

1970 population was 227,344— an increase of 4.6 percent over the 1960 figure. 

Pennsylvania as a whole had a 4.2 percent population increase in the like 

period. The 1972 median household income for these four counties ranged 

from $7,104 in Potter County to $7,840 in Lycoming County, compared to 

the State figure of $8,785.

Citizens, a very conservative institution, operates its only office in Renovo 

(1970 population 2,620— down 21.0 percent since 1960), which is in the 

north-central part of Clinton County. Clinton County is bounded on the north 

by Potter County and on the east by Lycoming County. The population of 

Clinton County remained stable during the 1960s and the 1970 count was 

37,721— the bulk of which is concentrated in the southern half o f the county. 

Renovo's economy is dependent on three principal employers w ith 500 to 600 

employees. Some other residents of the area commute for employment to 

Lock Haven, some 30 miles downriver from Renovo. Clinton County's 1972 

median household income was $7,357.

The only local com petition faced by Citizens is the Renovo branch of the 

$90-million-deposit Central Counties Bank, which was established in 1971 and 

has 32.3 percent of the total IPC deposits held by the tw o offices. Because of 

the comm utation patterns for employment and shopping, however, the three 

commercial banking offices in Lock Haven may represent realistic alternatives 

for commercial banking services for a significant portion of the residents of the 

Renovo area. These five offices operated by four banks have aggregate IPC 

deposits of $69.5 m illion, and Citizens has the smallest share w ith 7.1 percent. 

Because Commonwealth is not now represented in this local market, the proposed merger would not affect the commercial banking structure there. 

Commonwealth would replace a small ineffective com petitor, and would be a 

more aggressive alternative fo r commercial banking services in the RenovoLock Haven market.

Commonwealth's closest offices to Renovo are in Jersey Shore, about 42 

miles southeast, and in Galeton, about 40 miles north of Renovo. Five offices 

of three other banks are in the intervening area between Renovo and Jersey 

Shore, and the area between Renovo and Galeton is rugged mountain terrain 

traversed by a poor road system. The participating banks operate in separate 

and distinct markets, and there is no significant existing com petition between 

them which would be eliminated by their proposed merger.

Commonwealth may legally branch de novo into Renovo, but this does not 

appear to be a realistic probability. The entire northern half of Clinton County 

is sparsely populated, and there are already tw o commercial banking offices to 

serve the lim ited population of the area. Renovo's declining population and 

relatively static economy also serve to discourage such a course of action. 

Although Citizens may legally branch de novo into portions of Commonwealth's trade area, it lacks the financial and managerial resources to do so. The 

proposed merger would therefore eliminate no significant potential for increased com petition between Commonwealth and Citizens through de novo

branching.

W ithin the 10-county area where Commonwealth may branch or merge, 

there are 60 commercial banks operating over 140 offices. As of June 30,

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

1973, the largest of these banks was Northern Central Bank and Trust Company, W illiamsport, w ith 8.6 percent of the IPC deposits held by all commercial banks in that area. Commonwealth ranks third w ith 6.8 percent of the IPC 

deposits. The resulting bank would have 7.2 percent of such deposits and 

would be the second largest commercial bank in this branching and merging 

area. In view of the relatively unconcentrated nature of the area and the large 

number of commercial banks represented there, however, the addition of C itizens' 0.4 percent share of IPC deposits to Commonwealth's share would have 

no significant effect on the structure of commercial banking there.

Based on the foregoing, the Board of Directors has concluded that the 

proposed merger would not, in any section of the country, substantially lessen 

com petition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. The financial and 

managerial resources of Commonwealth and the resulting bank are adequate, 

and their future prospects are favorable. Citizens has a management succession 

problem which the proposed merger would resolve, and its future prospects 

would appear to be improved by the merger.

Convenience and Needs o f the Community to be Served. Consummation of 

the proposed merger would bring to customers of Citizens the broad range of 

services of a larger commercial bank, such as significantly larger lending limits, 

bank credit card services, trust services, higher interest rates on savings deposits, full installment loan services, and a greater variety of deposit instruments. There is at present only one local source fo r these services, and the 

proposed merger would provide Renovo residents w ith a second option w ith ­

out the necessity of going the 30 miles to Lock Haven.

Based on the foregoing inform ation, the Board of Directors has concluded 

that approval of the application is warranted.

R esources

(in

th o u san d s 

o f d o lla rs)

B a n kin g O ffic e s

In

o p e ra tio n

T o be 

o p e ra te d

Southern Bank and Trust Company

Greenville, South Carolina

174,172 29 32

to merge with

The Bank of Commerce

Prosperity

9,958 3

Summary report by Attorney General, May 16, 1974 

The nearest offices of the parties are separated by a distance of about 21 

miles. Thus, it does not appear that the proposed merger would eliminate 

substantial existing competition.

Applicant does not presently operate any banking offices in Newberry or 

Lexington Counties. Since South Carolina permits statewide branching, A p p licant could legally establish de novo offices in the Newberry and Lexington 

County areas presently served by Bank. However, in view of the existence of 

other potential entrants and the relatively modest market position of Bank, we

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 93

conclude that the proposed transaction w ill not eliminate substantial potential 

com petition.

Therefore, we conclude that the proposed merger would not have a substantial competitive impact.

Basis for Corporation approval, May 31, 1974

Southern Bank and Trust Company, Greenville, South Carolina ("S outhern"), an insured State nonmember bank w ith total resources of $174,172,000 

and IPC deposits of $122,961,000, 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 w ith The Bank o f Commerce, 

Prosperity, South Carolina ("Com m erce"), which has total resources o f 

$9,958,000 and IPC deposits of $7,747,000. Southern, as an incident to the 

merger, would operate the 3 offices of Commerce as branches, thereby increasing the number of its offices to 32.

Competition. Southern operates offices in eight counties of northwestern 

South Carolina, w ith its offices concentrated in large part in and near the 

southern terminus of the rapidly expanding Piedmont Industrial Crescent. The 

economy of the area, principally concerned w ith textiles, has been broadened 

over recent years by diversification of industry and expansion of distribution 

facilities. The population o f these eight counties increased during the 1960s by

10.5 percent to a total of 637,423. Southern has no office in the counties in 

which Commerce is represented.

Commerce has its main office in Prosperity (population 762), a tow n in 

southern Newberry County, and one branch each in Chapin (population 342) 

and Irm o (population 517) in northern Lexington County, towns respectively 

13 and 27 road-miles southeast of Prosperity. The banking market served by 

Commerce comprises southeastern Newberry County and a small portion of 

northern Lexington County, extending some 6 miles northwest of Prosperity 

to include Newberry town and some 8 miles south o f Irmo to include Lexington tow n and West Columbia city. The northern portion o f this market is 

predominantly agricultural; the southern portion is w ithin the fringe of the 

rapidly expanding residential suburbs of Columbia city. The estimated population of this area increased during the 1960s by some 50 percent to a total of 

57,200. In its local market, Commerce holds approximately 8.5 percent— the 

fifth largest share— of the IPC deposits held by the 8 commercial banks which 

presently maintain a total of 19 offices therein. The Lexington State Bank, 

headquartered w ithin the market, holds the largest share— approximately 30 

percent— of this market's IPC deposits in four area offices. Each of the five 

largest banks in the State are also represented in this local market.

Offices o f Southern nearest to Commerce are located some 40 road-miles 

northwest of Prosperity and a like distance to the northeast. The banks operate 

in separate markets and no significant existing com petition would be elim inated by their proposed merger.

Although statewide branching is permitted by South Carolina law, Commerce is not likely to enter de novo the areas presently served by Southern 

because of the distances involved and the com petition it would encounter. 

Southern, on the other hand, may find attractive the rapidly expanding western suburbs of Columbia city fo r de novo entry w ithin the foreseeable future. 

Elimination by the proposed merger of this potential fo r increased com petition

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

between the tw o banks has limited significance, however, in view of the minor 

size of Commerce in its market and the presence therein of a sufficient number 

of convenient alternatives fo r banking services.

Statewide, Southern held only 4.1 percent of the aggregate deposits held by 

all South Carolina commercial banks at year-end 1973. The resulting bank's 

share would be 4.3 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 

com petition, 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 both Southern and Commerce are adequate, as would be 

those of the resulting bank. Future prospects appear favorable for the resulting 

bank.

Convenience and Needs o f the Community to he Served. The increased 

lending capability o f the resulting bank, together w ith a lending lim it of 

approximately $1.6 m illion, should benefit the rapidly expanding market in 

which Southern operates. Trust services would be offered for the first time at 

the Commerce locations. These offices, operated by a much larger, more aggressive institution, should present significantly strengthened com petition in 

southeastern Newberry County and adjoining northern Lexington County to 

the five major banks of the State, all of which have representation therein.

The Board of Directors, accordingly, has concluded that approval of the 

application is warranted.

R esources

(in

th o u san d s 

o f d o lla rs)

B a n kin g O ffic e s

In

o p e ra tio n

T o be 

o pe ra te d

Home Savings Bank of Upstate New York

Albany, New York

185,865 7 8

to merge with

Troy Co-operative Savings and Loan

Association

Troy

17,702 1

Summary report by A ttorney General, February 19, 1974 

Troy Savings;' office in Troy (population 62,900) is located in western 

R ensselaer County (population 152,500) in the four-county AlbanySchenectady-Troy Standard Metropolitan Statistical Area. Home Savings' o ffices in Albany and Colonie appear to be w ithin about 10 miles of Troy 

Savings. The application indicates that much of Troy Savings' deposits are 

w ithin Home Savings' primary service area, and that Home Savings holds substantial deposits w ithin the Troy area.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 95

The proposed merger w ill eliminate some existing com petition in the Troy 

area, in Rensselaer County, and in the Rensselaer-Albany two-county area, 

slightly increasing concentration among savings institutions serving these areas.

Basis fo r Corporation approval, June 19, 1974

Home Savings Bank of Upstate New Y ork, Albany, New Y ork ("Hom e 

S a v in g s "), an insured mutual savings bank w ith total resources of 

$185,865,000 and total deposits of $173,338,000, has applied, pursuant to 

Section 18(c) and other provisions of the Federal Deposit Insurance Act, fo r 

the Corporation's prior consent to merge w ith Troy Co-operative Savings and 

Loan Association, Troy, New York ("S & L "), a federally insured, Statechartered savings and loan association w ith total resources of $17,702,000 and 

total deposits of $16,054,000.* The tw o institutions would merge under the 

charter and title of Home Savings and, incident to the merger, the sole office of 

S&L would become a branch of the resulting bank, increasing to nine the 

number of its offices.

Competition. Home Savings presently operates a total o f seven offices: its 

main office and one branch in the city of Albany, one branch each in the 

suburban towns of Colonie and Guilderland, tw o branches in Washington 

County, and one branch in Rensselaer County. The latter three branches were 

acquired during 1971 and 1974 by mergers w ith three State-chartered savings 

and loan associations. An eighth office w ill be established in Columbia County 

incident to the consummation o f the proposed merger of Home Savings w ith 

Hudson Savings and Loan Association, Hudson, which the Corporation approved May 29, 1974. Under present law, Home Savings may acquire by 

merger any number of branches throughout New York's Fourth Banking District, a 15-county region in northeastern New York State, but it may establish 

de novo branches w ithin the district at the rate of only one such branch each 

year. Commencing January 1, 1976, mutual savings banks w ill be permitted to 

branch statewide subject to the continuing lim itation of one de novo branch 

each year.

S&L has its sole office in Troy, Rensselaer County. Its primary service area 

comprises the city of Troy (1970 population 62,918, off 6.8 percent since 

1960) and its environs, including Watervleit (1970 population 12,404, o ff 10.9 

percent since 1960), a city in Albany County lying immediately west of Troy 

and connected thereto by a bridge spanning the Hudson River. The 1972 

median household buying level in Troy ($6,857) was 27 percent below that of 

the State as a whole. S&L competes in this primary service area w ith two 

Troy-based savings banks, which hold approximately 90.4 percent of the area's 

th rift institution deposits, and another Troy-based savings and loan association, 

which shares the remainder of such deposits w ith S&L.

Home Savings and S&L both compete in the Albany-Schenectady-Troy 

SMSA, which approximates the local banking market, and their nearest offices 

are about 7 miles apart. Home Savings holds approximately 6.7 percent of the 

deposits held by the 18 th rift institutions in that market, while S&L holds less 

than 1 percent of such deposits. Five larger savings banks also compete in the

* Financial data as o f December 31, 1973, adjusted fo r the subsequent merger o f Home 

Savings w ith F o rt Edward-Hudson Falls Savings and Loan Association.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

SMSA, the largest holding approximately 22 percent of such deposits. It appears that the proposed merger would eliminate some relatively insignificant 

existing com petition between the two institutions and that numerous th rift 

institution alternatives would remain to serve the public.

Furthermore, there appears to exist no significant potential for increased 

competition in the future between the tw o institutions resulting from de novo

branching. Home Savings, limited by law to one de novo branch a year, is likely 

to find other locations in the Fourth Banking D istrict (and, subsequent to the 

close of 1975, in the State) more attractive fo r de novo expansion than the 

Troy banking market, an area of declining population where buying levels are 

below average and tw o savings banks of substantial size are firm ly entrenched. 

S&L, for its peirt, has operated from a single office during its 87-year history 

and is not likely to attem pt de novo expansion at the present time, because o f 

limited financial and managerial resources.

Home Savings is the sixth largest mutual th rift institution in the Fourth 

Banking District, w ith approximately 6.4 percent of the deposits held by all 

offices of such institutions in the d istrict.** The resulting bank would hold 7.0 

percent of such deposits and continue as the sixth largest mutual th rift institution in the district.

The Board of Directors is of the opinion that the proposed merger would 

not, in any section of the country, substantially lessen com petition, tend to 

create a monopoly, or in any other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Both institutions 

have satisfactory financial and managerial resources, as would the resulting 

bank. The future prospects of the resulting bank appear to be favorable.

Convenience and Needs o f the Community to be Served. Operating from the 

location of S&L under a more liberal lending policy and w ith a greatly expanded lending capability, the resulting bank should provide more effective 

competition in the area of real estate financing to the other th rift institutions 

and commercial banks available locally. In addition, Home Savings would offer 

a number of services not presently offered by S&L to its customers.

Based on the; foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

R esources

(in

th o u san d s 

o f d o lla rs)

B a n kin g O ffic e s

I n

o p e ra tio n

T o be 

o p e ra te d

First Whitney Bank and Trust

A tlantic, Iowa

29,149 1 1

to merge with

Whitney Building Company, Inc.

A tlantic

-

**T h e indicated deposit share includes bo th deposits acquired by Home Savings in its 

A p ril 1, 1974 merger w ith F o rt Edward-Hudson Falls Savings and Loan Association 

and deposits to be acquired in its merger w ith Hudson Savings and Loan Association.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 97

Summary report by A ttorney General, May 15, 1974 

The Whitney Building Corporation is a wholly-owned subsidiary of First 

Whitney Bank and Trust. The subject merger is simply a corporate reorganization which w ill have the effect of eliminating Whitney Building as a separate 

corporate entity. Therefore, it w ill have no competitive effects.

Basis fo r Corporation approval, June 26, 1974 

First Whitney Bank and Trust, Atlantic, Iowa ("W hitney Bank")(total resources $29,149,000), an insured State nonmember bank, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance 

Act, fo r the Corporation's retroactive consent to merge w ith W hitney Building 

Company, Inc., Atlantic, Iowa ("W hitney Company"), a noninsured corporation which held title to Whitney Bank's banking office and which was w holly 

owned by Whitney Bank.

Competition. This transaction was essentially a m inor internal reorganization whose purpose was to return direct ownership of Whitney Bank's banking 

premises to the bank from its wholly-owned subsidiary. As such, it has had no 

effect on com petition.

Financial and Managerial Resources; Future Prospects. The financial and 

managerial resources and future prospects of Whitney Bank are satisfactory.

Convenience and Needs o f the Community to be Served. Due to the nature 

of the transaction as an internal reorganization, there has been no effect on the 

convenience and needs of any com m unity.

On the basis of the foregoing inform ation, the Director of the Division of 

Bank Supervision acting on behalf of the Board of Directors under delegated 

authority has concluded that approval of the application is warranted.

R esources

(in

th ousands 

o f d o lla rs)

B a n k in g O ffic e s

I n

o p e ra tio n

T o be 

o pe ra te d

Farmer's State Bank

Middletown, Indiana 

(change title to Farmers State Bank 

of Henry County)

8,181 2 3

to merge with

Farmers State Bank

Mooreland

3,371 1

Summary report by A ttorney General, May 15, 1974 

Applicant and Bank are both headquartered in northern Henry County in 

east-central Indiana. The banks' offices are separated by a distance of nearly 20 

miles w ith tw o other banking offices intervening; and there are banking alternatives nearer to each in both Henry and adjoining counties. It would not 

appear, therefore, that the proposed merger w ill eliminate substantial existing 

com petition between the parties or significantly increase concentration in any 

relevant banking market.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
9 8 FEDERAL DEPOSIT INSURANCE CORPORATION

Basis fo r Corporation approval, July 24, 1974

Farmer's State Bank, Middletown, Indiana ("M iddletow n Bank"), a State 

nonmember insured bank w ith total resources of $8,181,000 and total IPC 

deposits of $6,243,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, fo r the Corporation's prior consent to merge w ith Farmers State Bank, Mooreland, Indiana ("Mooreland 

Bank"), also a State nonmember insured bank, w ith total resources of 

$3,371,000 and total IPC deposits of $2,487,000, under the charter of Middletown Bank and w ith the title of Farmers State Bank of Henry County. As an 

incident to the merger, the sole office of Mooreland Bank would become a 

branch of the resulting bank, increasing the number of its offices to three.

Competition. Middletown Bank operates its main office and only branch in 

Middletown which is in the northwest corner of Henry County, while Mooreland Bank operates its only office in Mooreland which is in the northeast part 

of the county. Henry County is located in east-central Indiana, roughly 40 

miles northeast of Indianapolis, the State capital. It is south of Muncie and 

southeast of Anderson.

Henry County is agriculturally oriented, but there is considerable industry 

in New Castle, the county seat, which is located about 17 miles southeast of 

Middletown and 10 miles southwest of Mooreland. The population of Henry 

County in 1970 was 52,603, an increase of 7.6 percent over 1960. Middletown's population increased only slightly in the 1960s, and it had a 1970 

population of 2,046. Mooreland's population was 495 in 1970. The 1973 

median household buying level for Henry County was $10,086, about 4.4 

percent above the State figure of $9,665.

Middletown and Mooreland are located at opposite ends of Henry County 

and are about 20 miles apart. There are tw o commercial bank offices in this 

intervening area, including a branch of the largest bank in the county. A lthough both Middletown Bank and Mooreland Bank have offices in the same 

county, neither originates any appreciable volume o f business from the local 

area served by the other. Further, each bank faces com petition from other 

larger commercial banks at closer locations. Given these facts, it appears that 

there is no significant existing com petition between the tw o banks which 

would be eliminated by the proposed merger.

The proposed merger would have its most immediate competitive impact in 

and around Mooreland, the area served by the smaller of these two rural banks. 

Within a 10-mile radius of Mooreland, there are 7 commercial banks operating 

from 13 offices. Mooreland Bank holds only 3.6 percent of their combined IPC 

deposits. The resulting bank should be better able to compete w ith the larger 

banks in this market, both in the breadth of services rendered and the size of 

loans it could handle.

The proposed merger would also permit Middletown Bank, in its present 

trade area, to compete more effectively w ith larger banks in Anderson and 

elsewhere, because of the increase in its lending lim it from $42,000 to almost 

$75,000.

Either of the participating banks could legally establish de novo branches 

anywhere in Henry County, subject to home office protection. This does not 

appear likely, however, because of the limited financial and managerial resources o f both banks and the localized scope of their operations. In addition, 

there is already one banking office fo r each 2,768 persons in Henry County,

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 99

even w ith o u t considering the easily accessible commercial banking offices in 

the Anderson area. The proposed merger would therefore eliminate no significant potential com petition between the tw o banks.

In Henry County, the maximum legal branching and merging area of both 

banks, there are 8 commercial banks operating 19 offices which hold aggregate 

IPC deposits of $74.2 m illion. Middletown Bank holds 7.5 percent and Mooreland Bank holds 2.6 percent of these deposits. Commercial banking in the 

county is dominated by tw o New Castle banks which between them hold 58.2 

percent of the total IPC deposits. It is apparent that the proposed merger 

would have little effect on commercial bank com petition in Henry County.

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 

com petition, 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 each institution, and of the resulting bank, are considered 

satisfactory. Future prospects of the resulting bank are favorable.

Convenience and Needs o f the Community to be Served. The principal 

benefit of the proposed merger would accrue to the residents and businesses in 

Middletown and Mooreland, by virtue of the relatively significant increase in 

the resulting bank's lending lim it which would be locally available.

Based on the foregoing inform ation, the Board of Directors has concluded 

that approval o f the application is warranted.

R esources

(in

thousands 

o f d o lla rs)

B a n k in g O ffic e s

I n

o p e ra tio n

T o be 

o p e ra te d

The Savings Bank of Tompkins County

Ithaca, New York

121,814 4 7

to merge with

The Elmira Savings Bank

Elmira

74,980 3

Summary report by A ttorney General, A pril 4, 1974 

The nearest offices of the parties are separated by a distance o f approximately 31 miles. Thus, it does not appear that the proposed merger would 

eliminate substantial existing competition.

The Savings Bank of Tompkins County and The Elmira Savings Bank, the 

largest th rift institutions in Tompkins County and Chemung County, respectively, could become more competitive either by branching de novo into the 

area served by the other or by merger w ith a smaller th rift institution operating 

in the other's immediate area. Thus, we conclude that the proposed transaction 

would eliminate some potential com petition.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Basis fo r Corporation approval, July 24, 1974

The Savings Bank of Tompkins County, Ithaca, New York ("Tom pkins 

S a v in g s "), ari insured mutual savings bank w ith total resources of 

$121,814,000 and total deposits of $112,772,000, has applied, pursuant to 

Section 18(c) and other provisions of the Federal Deposit Insurance Act, fo r 

the Corporation's prior consent to merge w ith The Elmira Savings Bank, Elmira, New Y ork ("E lm ira Savings"), an insured mutual savings bank w ith total 

resources of $74,980,000 and total deposits of $69,520,000. These banks 

would merge under the charter and title of Tompkins Savings and, as an incident to the merger, the three offices of Elmira Savings would be established as 

branches of the resulting bank, increasing to eight the number of its approved 

offices.

Competition. Tompkins Savings operates a total of four offices: its main 

office and one branch in the city of Ithaca and one branch in the suburban 

town of Lansing, all three offices being located in central Tompkins County, 

and another branch in the town of Cortlandville, in Cortland County. Tom pkins Savings also has the necessary supervisory approvals to establish an additional branch in the village of Johnson C ity, in Broome County. Much of the 

population o f Tompkins County (77,064 in 1970) is concentrated in the Ithaca 

area, the city of Ithaca having a population o f 26,226 and the surrounding 

town of Ithaca 15,620. Cortlandville (population 7,469) adjoins the city of 

Cortland (population 19,621) and is the second largest com m unity in Cortland 

County (population 45,894). The 1973 median household buying levels in 

these three counties— Tompkins $9,973, Cortland $8,585, and Broome 

$9,694— compare w ith $10,264 fo r the State as a whole.

Elmira Savings has its main office in the city of Elmira (population 39,945) 

and one branch each in the suburban towns of Horseheads (population 20,552) 

and Southport (population 11,976). These are the three major communities in 

Chemung County (1970 population 101,537— up 2.9 percent since 1960). The

1973 median household buying level in Chemung County ($9,213) is 10.2 

percent below that o f the State as a whole.

Tompkins Savings derives more than 80 percent o f its deposits from Tom pkins County. Chemung County, sim ilarly, is the primary trade area of Elmira 

Savings. Chemung County borders the State of Pennsylvania and is adjacent to, 

and southwest of, Tompkins County, both counties lying immediately west of 

the Binghamton, New York-Pennsylvania SMSA. Cornell University is Ithaca's 

major employer. The Elmira area is one of diversified industry. Much of the 

remaining area of the tw o counties is hilly, forested, and sparsely populated.

Two th rift institutions are represented in Tompkins County. Tompkins 

Savings holds approximately 75 percent o f the deposits held on June 30, 1973, 

by the area offices o f these institutions; Ithaca Savings and Loan Association 

holds the remainder. The Chemung County market is shared by 2 mutual 

savings banks arid 3 savings and loan associations, their 11 area offices holding 

deposits aggregating $191,900,000. Elmira Savings holds the largest share (36.1 

percent) of these deposits.

No office of Tompkins Savings is w ithin 31 road-miles of any office of 

Elmira Savings. A survey o f the accounts of the proponents indicated a m inimum of depositors and few borrowers common to both institutions, while the 

deposits and loans each bank derives from the trade area of the other are not

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 101

substantial in amount. It appears, therefore, that no significant existing competition between the tw o banks would be eliminated by their proposed merger.

Under present law, the proponents may establish de novo branches throughout the Seventh Banking District, an eight-county region in central-southern 

New York State, at the rate of one such branch each year, subject to home 

office protection. Commencing January 1, 1976, New York's mutual savings 

banks w ill be permitted to branch statewide, subject to home office protection 

and a continued lim it of one de novo branch each year.

Elmira Savings has its tw o branches in close proxim ity to its main office and 

has established no additional offices since its legal branching area was broadened in 1971 to include the eight counties of the Seventh Banking District. 

Under nonaggressive management, the bank is unlikely to engage in de novo

expansion in the foreseeable future. Tompkins Savings, on the other hand, is 

pursuing an office expansion program. It entered Cortland County de novo in 

1972 and has established a public accommodation branch in Ithaca in 1974. It 

holds the necessary approvals to enter Broome County de novo and, by the 

subject merger, proposes to enter Chemung County. If the proposed merger is 

denied, however, it cannot be said that Tompkins Savings would be likely to 

enter Chemung County de novo in view of the county's lack of significant 

population growth during recent years, the fact that Elmira itself would be 

closed to such de novo branching because of home office protection, the 

county's prevailing below average buying levels, and the existence of 11 th rift 

institution offices today. Even if some lim ited potential fo r increased com petition between the tw o banks through de novo branching in the future or 

through some alternative merger were to be eliminated by the proposed merger, the advent of statewide branching in 1976 w ill m ultiply dramatically the 

number of th rift institutions legally able to establish offices in both Chemung 

and Tompkins Counties and reduce the significance of that consequence in the 

merger proposed.

Tompkins Savings is the second largest mutual th rift institution in the 

Seventh Banking District, w ith 13.5 percent of the deposits held by all such 

institutions in this market. The resulting bank, w ith 21.8 percent of such 

deposits, would continue to rank second largest in the district, substantially 

smaller than the $304-million-deposit Binghamton Savings Bank. On a statewide basis, the resulting bank would rank 80th largest of New York's th rift 

institutions w ith 0.3 percent o f their aggregate deposits.

The Board of Directors is of the opinion that the proposed merger would 

not, in any section o f the country, substantially lessen com petition, tend to 

create a m onopoly, or in any other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Financial and managerial resources of Tompkins Savings are satisfactory, those o f Elmira Savings 

are acceptable. The resulting bank would have satisfactory financial and managerial resources and its future prospects appear to be favorable.

Convenience and Needs o f the Community to be Served. The resulting bank, 

w ith an increased lending capability in Tompkins, Cortland, and Chemung 

Counties and w ith its offices in Chemung County reflecting the policies of a 

more sophisticated and aggressive management, would offer additional services 

than the banks do today and should prove attractive to all area residents who 

seek th rift institution services.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources 

(in 

th ousands 

o f d o lla rs )

B a n kin g O ffic e s

In

o p e ra tio n

T o be 

ope ra te d

The Toy National Bank of Sioux City

Sioux City, Iowa

90,911 1 1

to merge with

Farmers Loan and Trust Company

Sioux City

866 1

Summary report by A ttorney General, June 12, 1974 

According to the application, both institutions share the same quarters, and 

employees and officers of one have simultaneously done w ork as employees 

and officers of the other. The application also states that since a 1952 decision 

to enlarge the trust department of Bank, the principal use of Farmers Trust has 

been to administer fam ily trusts.

Under Iowa law, the charter of Farmers Trust, one of tw o remaining trust 

companies in Iowa, w ill expire in 1983, and cannot be renewed.

We do not believe that the proposed transaction would have any significant 

adverse competitive effects.

Basis for Corporation approval, August 12, 1974 

The Toy National Bank of Sioux City ("T oy Bank"), w ith total resources of 

$90,911,000 and IPC deposits of $55,458,000, 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 w ith Farmers 

Loan and Trust Company, Sioux City, Iowa ("Farmers T rust"), a noninsured 

trust company w ith total resources of $866,000 and IPC deposits of $542,000.

Competition. Toy Bank and Farmers Trust were organized in 1912 and 

1883, respectively, by the same individual, and Farmers Trust was originally 

founded to manage the investments of that individual's fam ily. Both institutions are now sjbstantially owned by their founder's grandchildren and over 

the years, Toy Bank and Farmers Trust have for the most part shared the same 

directors, officers, and employees. In addition, since Toy Bank's organization, 

both institutions have operated from the same Sioux City office. Toy Bank's 

trust department administers about $22 m illion in trust assets and Farmers 

Trust has about $5.3 m illion in trust assets, largely trust accounts of the 

founding fam ily.

For over 20 years the common management of the participating institutions 

has concentrated the development of new fiduciary business in the trust department of Tcy Bank rather than Farmers Trust, resulting in a significant 

decline in the latter's resources during that time. The charter of Farmers Trust 

w ill expire in 1983 and under present Iowa iaw cannot be renewed.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 103

It is apparent that there has never been any significant com petition between 

Toy Bank and Farmers Trust and that there is little likelihood that com petition 

would develop between them in the future. Further, the proposed merger 

would not have any material effect on the structure of commercial or fiduciary 

banking in any relevant area.

Under the circumstances in this case, the Board of Directors is of the opinion that the proposed merger would not, in any section of the country, substantially lessen com petition, tend to create a monopoly, or in any other 

manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Both institutions 

have adequate financial resources fo r the business they presently do. The managerial resources of both institutions are largely the same individuals, who 

would continue to operate the resulting bank. Managerial resources are satisfactory. Future prospects of Toy Bank and the resulting bank are satisfactory, 

but Farmers Trust is essentially a vehicle fo r managing fam ily trusts and it must 

cease its existence in about 9 years. Its future would therefore be more favorable as part of the resulting bank.

Convenience and Needs o f the Community to be Served. The proposed 

merger would have limited effects on convenience and needs. The resulting 

bank would have somewhat higher legal lending lim it and the integration of the 

tw o separate trust operations into a $27-m illion trust department of the resulting bank could result in improving the efficiency of the administration of its 

fiduciary activities.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

R esources

(in

th o u san d s 

o f d o lla rs )

B a n kin g O ffic e s

I n

o p e ra tio n

T o be 

o pe ra te d

The Peoples Bank and Trust Company

Tupelo, Mississippi

84,555 11 13

to merge with

Clay County Bank and Trust Company

West Point

6,211 2

Summary report by A ttorney General, June 19, 1974 

Clay County Bank's West Point offices are located about 40 miles south of 

Peoples Bank's nearest office. There are several intervening banking offices. 

Thus, it does not appear that the proposed merger would eliminate substantial 

existing com petition. And in view of Clay County Bank's small size and market 

position, we conclude that the proposed merger would not eliminate substantial potential competition.

Basis for Corporation approval, August 12, 1974 

The Peoples Bank and Trust Company, Tupelo, Mississippi ("Peoples 

Bank"), a State nonmember insured bank w ith total resources of $84,555,000 

and IPC deposits of $65,094,000, has applied, pursuant to Section 18(c) and

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

other provisions of the Federal Deposit Insurance Act, for the Corporation's 

prior consent to merge under its charter and title w ith Clay County Bank and 

Trust Company, West Point, Mississippi ("Clay County Bank"), which has total 

resources of $6,211,000 and IPC deposits of $3,361,000. The 2 offices of the 

latter bank would be established as branches of the resulting bank, increasing 

to 14 the number of its approved offices.

Competition. Peoples Bank operates eight offices, including its main office, 

and has one approved, unopened office in Lee County, Mississippi (population 

46,148), and three offices in Prentiss County (population 20,133), which adjoins Lee County to the north. Historically agricultural, the economy of these 

tw o counties during recent years has become reasonably well diversified w ith 

the development of significant light industry in the Tupelo area— the center of 

trade and employment for the entire northeast Mississippi area. The population 

of Lee County increased 13.7 percent during the 1960s, while Prentiss County 

had similar growth, 12.2 percent. Both counties compared favorably w ith the 

statewide population increase of only 1.8 percent. Peoples Bank has no office 

in Clay County.

Clay County Bank has its main office and only branch in West Point (population 8,714), the only incorporated area in Clay County (1970 population 

18,840, virtually unchanged during the 1960s). Clay County is an agricultural 

area located south of Lee County and is separated from Lee County by Chickasaw and Monroe Counties. Clay County Bank has Clay County as its primary 

service area. Established in late 1972, it holds only 8.1 percent of the IPC 

deposits contro led by offices in Clay County of the three commercial banks 

operating there. The First National Bank of West Point and Bank of Mississippi 

(its representation w ithin the county recently acquired by merger) each have 

far larger shares; of Clay County IPC deposits. Median household income in 

Clay County in 1973 was $7,939 compared to a statewide median of $6,928. 

Within a 15-mile radius of West Point, Clay County Bank holds only 1.1 

percent of the local IPC deposits held by the area's nine commercial banks.

The closest office of Peoples Bank to Clay County Bank's offices in West 

Point is located in Shannon, 9 road-miles south of Tupelo and some 38 miles 

north of West Point. Another commercial bank operates a branch office between the tw o locations. Residents of the Shannon area seeking convenient 

alternatives for bank services would, moreover, be likely to turn to bank offices 

in either Chickasaw or Monroe County rather than traveling a considerably 

greater distance to West Point. People in the latter area have alternatives w ithin 

West Point as well as three banks w ith numerous branches in the city of 

Columbus, 15 miles southeast of West Point, all more convenient than traveling 

to Shannon. For all of these reasons, it appears that the tw o banks operate in 

separate banking markets and that no significant existing competition would be 

eliminated by their proposed merger.

State law permits both banks to establish branch banks w ithin the market 

served by the other. For Peoples Bank, however, neither Clay County nor the 

area w ithin 15 miles of West Point is attractive fo r de novo entry. In the city of 

West Point, each banking office presently serves an average of 1,743 inhabitants while there is no other center of significant population in sparsely populated Clay County. Other population centers, (Columbus, Starkville, and Aberdeen) w ithin 15 miles of West Point also have numerous existing offices and 

low population fo r each commercial bank office. As for Clay County Bank, it

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 105

has only recently established its first branch and w ith limited financial and 

managerial resources it would not be likely to enter the market of Peoples 

Bank de novo because of the distances involved and the strong com petition 

existing among commercial banks in that market.

In its broadest potential market under State law— all Mississippi points w ith ­

in 100 miles o f Tupelo— Peoples Bank controls 5.4 percent of the IPC deposits 

held by all area offices of the 74 commercial banks presently represented 

therein. The proposed merger would increase its percentage share of the same 

area to 5.6 percent. Statewide, Peoples Bank holds 1.5 percent of aggregate 

commercial bank deposits; its post-merger share would be 1.6 percent. The 

proposed merger, accordingly, appears unlikely to affect adversely the structure of commercial bank com petition in any relevant area.

The Board of Directors, in view o f the foregoing, has concluded that the 

proposed merger would not, in any section of the country, substantially lessen 

com petition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Both Peoples Bank 

and Clay County Bank have adequate financial resources, as would the resulting bank. The satisfactory managerial resources o f Peoples Bank would overcome deficiencies in the managerial resources of Clay County Bank. Future 

prospects fo r the resulting bank appear favorable.

Convenience and Needs o f the Community to be Served. The merger would 

replace a modest-sized commercial bank, recently established in Clay County, 

w ith offices of the State's eighth largest commercial bank. A sophisticated and 

aggressive management, operating w ith a lending capability in excess of $1 

m illion, should stimulate com petition w ith the other tw o firm ly entrenched 

commercial banks in the Clay County market to the benefit of its residents, 

farmers, and businessmen. Customers of Clay County Bank would also benefit 

from the introduction of trust services.

The Board of Directors, accordingly, has concluded that approval of the 

application is warranted.

Resources 

(in 

thousands 

o f d o lla rs)

B a n k in g O ffic e s

In

o p e ra tio n

T o be 

ope ra te d

Wilmington Savings Fund Society

Wilmington, Delaware

486,414 15 16

to purchase the assets and assume

the deposit liabilities o f

Claymont Savings and Loan Association

Claymont

1,003 1

Summary report by A ttorney General, May 15, 1974 

W ilmington Savings holds the dom inant share of savings and time deposits in 

New Castle County. In mid-1972, it held 66.6 percent of savings and time

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

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. Claymont Savings 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.

Claymont Savings' sole office is located in the far northeastern corner of the 

State, about 15 miles northeast of W ilmington. W ilmington Savings operates an 

office about 1-1/2 miles north of Claymont Savings which serves much of the 

same area as that served by Claymont Savings. The proposed acquisition would 

thus eliminate existing com petition between the tw o institutions. However, in 

view of Claym cnt Savings' small size ($861,000 in deposits; 466 savings accounts) and modest competitive capabilities, we conclude that the proposed 

acquisition would not have a significantly adverse effect on com petition.

Elasis for Corporation approval, August 26, 1974

W ilmington S>avings Fund Society, W ilmington, Delaware ("S ociety")(total 

resources $486,414,000; total deposits $451,504,000), an insured mutual 

savings bank, has applied, pursuant to Section 18(c) and other provisions of the 

Federal Deposit Insurance Act, fo r the Corporation's prior consent to purchase 

the assets of, and assume liability to pay deposits made in, Claymont Savings 

and Loan Association, Claymont, Delaware ("S & L ") (total resources 

$1,003,000; total deposits $861,000 at November 23, 1973), an uninsured 

association. The sole office of S&L would be established as a branch of Society.

Competition. Society is headquartered in W ilmington, Delaware, located 

w ithin the densely populated, highly developed NewYork-Washington corridor. 

Extensive manufacturing is carried on in the W ilmington area, the city serving 

also as the commercial and services center fo r Delaware and portions of adjacent Maryland, Pennsylvania, and New Jersey. Society operates 15 offices at 

the present time, of which 11, including its main office, are located in New 

Castle County, the northernmost of Delaware's 3 counties. One additional 

office has been approved, but is not yet in operation. Society is the largest of 

24 th rift institutions in Delaware, w ith approximately 65 percent of their 

aggregate deposits.

S&L holds only 0.1 percent of the deposits held by the 36 offices in New 

Castle County of the 16 th rift institutions represented therein, and its deposits 

have been declining in recent years. (S&L's passbook rate is well below the 

5.25 percent ceiling rate offered by Society and others in the market.) Its net 

operating income approximated $3,000 fo r its last fiscal year. S&L originated 

only seven loans in one recent calendar year and it has only one active officer. 

S&L is clearly not an effective com petitor in its market. Even though Society 

operates in the same market as S&L and has deposit relationships w ith 129 of 

S&L's 466 savings depositors, no substantial com petition between them would 

be eliminated nor would the structure of th rift institutions in the area change 

perceptibly. Furthermore, were the proposed transaction to be consummated, 

a sufficient number of th rift institutions would remain in New Castle County 

to serve as alternatives fo r people seeking th rift institution services at locations 

other than the tw o offices maintained by Society in the close vicinity of 

Claymont.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 107

Under the circumstances presented, the Board of Directors is o f the opinion 

that the proposed purchase and assumption transaction would not, in any 

section of the country, substantially lessen com petition, tend to create a monopoly, or in any other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Society has adequate 

financial and managerial resources. With the proposed transaction effected, its 

future prospects would be favorable.

Convenience and Needs o f the Community to be Served. Customers of S&L 

would have three offices o f Society conveniently located w ithin S&L's market 

at which to transact business. They would benefit from the broad range of 

Society's services including its lending expertise and capacity to make significantly larger loans. Checking accounts would be offered for the first time at 

the S&L location. Regular savings depositors would receive interest at 5.25 

percent annually as compared w ith the 4.8 percent being paid by S&L, rates 

for certain other time deposits would be increased, and all depositors would 

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

th o u san d s 

o f d o lla rs )

B a n kin g O ffic e s

I n

o p e ra tio n

T o be 

ope ra te d

The Pennsylvania Bank and Trust Company

Titusville, Pennsylvania

232,660 17 24

to merge with

First Laurel Bank

St. Marys

100,831 7

Summary report by A ttorney General, September 17, 1973 

The main offices of the parties are located about 52 miles apart while their 

nearest offices are separated by approximately 25 miles, w ith several banking 

alternatives in the intervening area. Thus, it does not appear that the proposed 

acquisition would eliminate substantial existing com petition.

Pennsylvania law prohibits multibank holding companies. Under State law, 

commercial banks may branch w ithin their headquarters' county and w ithin 

contiguous counties. Pennsylvania Bank is now headquartered in Crawford 

County but must shift its home office designation to one o f its Warren County 

offices in order to complete this transaction, since Crawford County is not 

contiguous to either Elk or McKean Counties, where Laurel Bank presently 

operates. By designating a Warren County office as its registered headquarters, 

as it proposed to do in connection w ith this proposed acquisition, Pennsylvania 

Bank could legally branch into both McKean and Elk Counties.

McKean and Elk Counties are highly concentrated banking markets. Laurel 

Bank, w ith 38 percent of McKean County deposits, is the largest o f six commercial banks operating in that county; the three largest McKean County banks 

hold approximately 74 percent of county deposits. Laurel Bank is also the 

largest of five banks operating in Elk County, holding 55.7 percent of total 

county deposits. The three largest Elk County commercial banks hold 86 percent o f county deposits.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Should it move its home office into Warren County, Pennsylvania Bank 

would be the largest commercial bank which could branch into McKean or Elk 

Counties, although in so doing, it would yield its present ability to branch in 

Mercer County. And while not one of the largest banks in the region, Laurel 

Bank nevertheless has the capability to branch into adjacent Warren County, 

where Pennsylvania Bank, w ith five banking offices, is one of only tw o commercial banks serving the county. However, the effects of this transaction on 

potential com petition are diminished somewhat by the limited growth prospects of the area and the fact that several substantial banking institutions in 

Erie and Crawford Counties could, by establishing a c/e novo branch in Warren 

County and designating the newly opened office as its headquarters, thereafter 

enter McKean and Elk Counties.

We conclude that the proposed transaction would eliminate some potential 

com petition.

Basis fo r Corporation approval, August 26, 1974

The Pennsylvania Bank and Trust Company, Titusville, Pennsylvania 

("Titusville Bank"), an insured State nonmember bank w ith total resources of 

$232,660,000 and total IPC deposits of $178,579,000, has applied, pursuant 

to Section 18(c) and other provisions o f the Federal Deposit Insurance Act, for 

the Corporation's prior consent to merge w ith First Laurel Bank, St. Marys, 

Pennsylvania ("Laurel Bank"), w ith total resources o f $100,831,000 and total 

IPC deposits of $80,431,000, under the charter and title of Titusville Bank. 

Application has also been made under Section 18(d) of the said A ct to establish Laurel Bank's seven offices as branches of the resulting bank and to relocate Titusville Bank's main office from Titusville, Crawford County, Pennsylvania, to the borough of Warren, Warren County, Pennsylvania, in which 

latter location it w ill become the main office of the resulting bank.

Competition. Titusville Bank operates a total of 17 offices: 6 in Crawford 

County (1970 population 81,342— up 4.3 percent since 1960), 2 in Erie County (1970 population 263,654— up 5.2 percent since 1960), 4 in Venango County (1970 population 62,353— down 4.5 percent since 1960), and 5 in Warren 

County (1970 population 47,682— up 4.6 percent since 1960). While its offices 

are thus scattered throughout the northwestern corner of Pennsylvania, it 

serves prim arily the follow ing communities and their environs: Titusville (1970 

population 7,331), Meadville (1970 population 16,573), Union C ity (1970 

population 3,631), Oil City and Franklin (combined 1970 populations 

23,662), and Warren (1970 population 12,998). Economies of these areas have 

various bases ranging from steel manufacturing, oil and gas production, and 

strip mining to light industry, dairy farming, logging, and tourism. Titusville 

Bank, under Pennsylvania law, may also establish branches in Mercer County 

(1970 population 127,225— approximately the same as 1960), but it presently 

has no representation in that county.

Titusville Bank, in connection w ith the proposed merger and to comply 

w ith provisions of State law relating to location of main offices, would relocate 

its main office from Crawford County to Warren County, thus abandoning 

Mercer County as a potential market while acquiring the right, w ith supervisory 

approvals, to branch or merge in the counties of Elk (population 37,770— up

1.2 percent during the 1960s), Forest (1970 population 4,926— up 9.8 percent 

during the 1960s), and McKean (population 51,915-dow n 4.8 percent during 

the 1960s).

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 109

Laurel Bank has a total of seven offices: four in southern Elk County and 

three in northern McKean County. Approxim ately one-quarter of this twocounty area is included in National or State forests and the economy is largely 

based upon agriculture, logging, and tourism. Because of the terrain and the 

fact that 47 road-miles separate the nearest Laurel Bank office in McKean 

County from its nearest office in Elk county, Laurel Bank must be viewed as 

serving tw o separate and distinct local markets. In each of these, Laurel Bank 

has the largest percentage share of the local IPC deposits, but it faces com petition in both areas from the $130.7-million-deposit Warren National Bank and 

from three much smaller banks in Elk County and four smaller banks in 

McKean County.

The closest offices of Titusville Bank and Laurel Bank are separated by 

some 43 miles of a two-lane roadway that traverses sparsely settled mountainous terrain and the Allegheny National Forest. Neither bank draws any 

substantial business from areas served by the other. It appears that no significant existing com petition between the tw o banks would be eliminated by their 

proposed merger.

Pennsylvania law permits commercial banks to expand by merger or de novo

branching w ithin their headquarters' counties and all contiguous counties. 

Titusville Bank, follow ing relocation of its headquarters into Warren County, 

may thus enter both Elk and McKean Counties. Neither of these counties 

would appear significantly attractive for de novo entry by Titusville Bank in 

the foreseeable future, however, in view o f economic conditions, buying levels, 

population trends, and existing ratios of population to banking offices. McKean County has substantial unemployment and a 1973 median household 

buying level approximately 15 percent below the State level. In addition, it lost

4.8 percent of its population during the 1960s and already has a low population fo r each commercial bank office (3,461 persons). Elk County, although 

significantly better o ff than McKean County as an employment center, grew in 

population by only 442 people during the decade ending w ith the 1970 census 

and had a 1973 median household buying level some 10 percent below the 

State level. It presently has one commercial bank office for every 4,200 people. 

In the event future economic developments justify additional de novo branching in Elk County, there are tw o banks w ith more than $50 m illion in deposits, 

headquartered in Clearfield County and as yet unrepresented in Elk County, 

that must be considered potential de novo entrants. For its part, Laurel Bank 

has both the financial and managerial resources to accomplish de novo entry 

into Warren County, a heavily concentrated banking market where the Warren 

National Bank has 7 of 12 offices and Titusville Bank the other 5. Warren 

County buying levels are approximately 4.7 percent below the statewide level, 

its population grew by only 2,100 persons between 1960 and 1970, and it 

presently has one commercial bank office fo r every 4,000 residents. While 

Warren County would appear to be more attractive fox de novo expansion than 

either county in which Laurel Bank presently has offices, it remains of marginal attraction fo r any outside bank. Moreover, in the case of Warren County, 

there are five other potential entrants, larger than Laurel Bank and headquartered in contiguous counties, that might be considered more likely potential entrants than Laurel Bank should economic developments warrant additional de novo branches in Warren County. Under all of these circumstances, 

the Corporation considers the possible elimination of increased com petition

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

between Titusville Bank and Laurel Bank through de novo branching in the 

future to be a relatively insignificant factor in assessing the competitive impact 

of their proposed merger.

The change in Titusville Bank's headquarters from Crawford to Warren 

County, which is necessary to consummate the proposed merger, w ill result in 

its losing the authority under Pennsylvania law to expand de novo or by merger 

into Mercer County, which is located south of Crawford County adjacent to 

the Ohio State line. Sim ilarly, by merging Laurel Bank into the relocated 

Titusville Bank, the resulting bank would lose Laurel Bank's existing authority 

to expand de novo or by merger into Cameron, Clearfield, and Jefferson Counties. The competitive impact of the proposed merger in each of these four 

counties, however, is likely to be minimal. Mercer County experienced no 

growth at all in the 1960s, its median household buying level is slightly below 

the State average, and its 7 commercial banks presently have 38 offices fo r its 

127,225 residents— an average population fo r each commercial bank office of 

only 3,348. Four banks w ith more than $50 m illion in deposits headquartered 

in counties contiguous to Mercer County and presently unrepresented there 

would remain as potential entrants even if Titusville Bank moves its main office 

to Warren County. A similar analysis of the banking structure of Cameron, 

Clearfield, and Jefferson Counties leads to a similar conclusion. Each o f these 

counties lost population in the 1960s; Clearfield and Jefferson have median 

household buy ng figures more than 20 percent below the State level (Cameron's is 5.4 percent higher but it has only 7,096 residents); the population fo r 

each existing commercial bank office is already low (except in sparsely populated Cameron which has only one commercial bank office); and each county 

has at least one bank w ith deposits over $50 m illion, headquartered in a contiguous county and presently unrepresented there, which must be considered a 

potential entrant in the future, even if Laurel Bank is merged into Titusville 

Bank (actually Clearfield County has eight such potential entrants, Cameron 

County tw o, and Jefferson C ounty— w ith only 2,731 residents for each existing 

office— one). The Corporation has accordingly concluded that the proposed 

merger would have no adverse competitive consequences in any of these four 

counties.

The proposed merger would result in a greater concentration of commercial 

banking resources in the seven-county area of Pennsylvania w ithin which the 

resulting bank could merge or branch de novo (Erie, Crawford, Venango, 

Warren, Forest, McKean, and Elk Counties). W ithin that area, Titusville Bank 

presently holds 13.6 percent of the total IPC deposits held at commercial bank 

offices in the seven counties, while Laurel Bank holds 5.9 percent of such 

deposits. The resulting bank, w ith 19.5 percent of all such deposits, would rank 

second in this regard, ta ilin g slightly the 21.1 percent share held by The First 

National Bank of Pennsylvania, headquartered in Meadville. There would remain, in addition to these tw o lead banks, however, five other commercial 

banks w ith more than $75 m illion each in local IPC deposits. While the resulting bank's share of its largest potential market would be at a level where any 

significant future acquisitions by merger of banks it may propose might have to 

be denied, the Corporation does not view that decision as necessary here where 

neither significant existing nor significant potential com petition would be elim ­

inated, where the existing bank structure w ithin the several local markets involved would not be significantly affected, and where some benefits to the

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 111

convenience and needs o f the public can be shown.

On the facts presented, the Board of Directors is of the opinion that the 

proposed merger would not, in any section of the country, substantially lessen 

com petition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Both o f 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 Laurel Bank 

customers in McKean and Elk counties would benefit from Titusville Bank's 

"one statement" banking service, from the ceiling rates consistently paid by 

Titusville Bank on passbook savings and consumer savings certificates, and 

from the generally lower service charges it imposes on checking accounts. They 

would also benefit from a significantly higher lending lim it ($2.3 m illion as 

compared w ith Laurel Bank's present $800,000), while Titusville Bank's business customers should also find the increase in lending limits (from $1.5 m illion to $2.3 m illion) helpful.

Based on the foregoing, the Board o f Directors has concluded that approval 

of the application is warranted.

R esources

(in

th o u san d s 

o f d o lla rs)

B a n kin g O ffic e s

In

o p e ra tio n

T o be 

o pe ra te d

Grenada Bank

Grenada, Mississippi

165,866 20 22

to merge with

First National Bank of Greenwood

Greenwood

14,453 2

Summary report by A ttorney General, May 22, 1974 

The Itta Bena branch of Grenada Bank is located in a small com m unity of 

2,500 about 10 miles west of Greenwood. It appears that there is some competition between Grenada Bank and Greenwood Bank in Leflore County. 

Greenwood is the commercial center of the county, and it would appear that 

the banks located there derive business from throughout Leflore County.

The follow ing banks operate offices in Leflore County:

Bank

Leflore County 

Deposits (in millions) 

6/30/73 Share

Bank of Greenwood (Branch of 

First National Bank of Jackson) $34.8 42.0%

Bank of Commerce 15.6 18.8

Leflore Bank & Trust Co. 15.3 18.5

Greenwood Bank 11.7 14.1

Grenada Bank - Itta Bena Branch 5.4 6.5

Total $82.8 100.0%

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

First National Bank of Jackson, second largest bank in the State, acquired 

Bank of Greenwood in 1969. In addition, Deposit Guaranty National Bank, 

Jackson, largest bank in the State, has applied fo r permission to acquire Leflore 

Bank & Trust Company.

Absent the recent difficulties encountered by Greenwood Bank, therefore, 

the proposed merger of Grenada Bank and Greenwood Bank could have adverse effects on com petition, although the extent to which the parties compete 

w ith each other and w ith other banks for banking business throughout Leflore 

County is unclear from the application. The merger would combine tw o of 

only five banks operating in the county, creating the second leading bank 

therein, holding approximately 20.6 percent of total county deposits. However, the bank has been weakened by recent events, which mitigate these 

competitive effects. The application does not disclose to what extent merger 

w ith other banks outside Leflore County would have been possible, and 

whether any such merger could have solved Greenwood Bank's problems.

Basis for Corporation approval, August 30, 1974

Grenada Bank, Grenada, Mississippi, an insured State nonmember bank w ith 

total assets of $165,866,000 and IPC deposits of $129,317,000, has applied, 

pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, fo r the Corporation's prior consent to merge under its charter and 

title w ith First National Bank of Greenwood, Greenwood, Mississippi ("Greenwood Bank"), w ith total assets of $14,453,000 and IPC deposits of 

$11,480,000. The main office and only branch of Greenwood Bank would 

become branches of the resulting bank as an incident to the merger, increasing 

to 22 the total number o f its authorized offices.

Competition. Grenada Bank operates offices in 10 counties in northern 

Mississippi. The areas prim arily served include all or parts of the counties of 

Grenada, Bolivar, Winston, Tallahatchie, Chickasaw, Calhoun, Choctaw, Leflore, Sunflower, and Webster. The economy of this region is predominantly 

agricultural, but light industry has assumed greater importance in the past 

decade. The 1970 population of these 10 counties was 236,080, representing a 

9.5 percent decrease since 1960. With the exception of Grenada County, 

median household buying levels throughout the region are substantially below 

the State level which itself is the second lowest in the nation.

Greenwood Bank has its main office and one branch in Greenwood (1970 

population 22,400, up 9.6 percent since 1960) in Leflore County (1970 population 42,111, down 10.7 percent since 1960). Leflore County is in northwestern Mississippi immediately to the east of Sunflower County. Its economy 

is predominantly agricultural, although some light manufacturing is located in 

the city of Greenwood. Its median household buying level income ($5,143) is

25.8 percent below the statewide level ($6,928).

The effects of the proposed merger would be confined almost entirely to 

the area w ithin approximately 15 miles of Greenwood. There are 13 commercial banking offices in the service area, and they held aggregate IPC deposits of 

$70,195,000 as of June 30, 1973. Greenwood Bank had 13.7 percent of the 

total IPC deposits in the service area and the tw o Greenwood offices of the 

First National Bank of Jackson (the second largest commercial bank in the 

State) held 38.3 percent of such deposits. Bank of Commerce, Greenwood, and 

Leflore Bank & Trust Company, Greenwood, held 18.8 percent and 18.6 perDigitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 113

cent, respectively. Grenada Bank's Itta Bena office, 10 miles west of Greenwood, had 6.3 percent of local IPC deposits, and the resulting bank would have 

20.0 percent. In view of the large share o f the local market held by the State's 

second largest bank and the fact that Deposit Guaranty National Bank, the 

largest bank in the State, w ill soon succeed to Leflore Bank & Trust Company's 

18.6 percent share o f the market by merger, the proposed merger of Grenada 

Bank and Greenwood's smallest local bank would not have a significant effect 

on the local commercial banking structure. While there is some overlap of areas 

served between Greenwood Bank and Grenada Bank's Itta Bena office, their 

locations would indicate that no significant existing com petition between them 

would be eliminated by their proposed merger.

The possibility of increased com petition in the future between the merging 

banks exists, but such increased com petition is not regarded as probable. 

Mississippi law would perm it Grenada Bank to branch de novo into Greenwood, but this is unlikely to be very attractive to Grenada Bank: the existing 

population per banking office in Greenwood is only 2,240, the State's two 

largest banks w ill both be in an established competitive position, and a low 

median household buying level prevails. For its part, Greenwood Bank lacks 

the financial and managerial resources to attem pt de novo branching into areas 

served by Grenada Bank. Its competitive position has also been eroded in the 

past 2 years by well-publicized misappropriations of bank funds by former 

staff members and disclosure of the bank's involvement in certain bogus transactions.

In its maximum potential market, which under State law is that portion of 

Mississippi w ithin a 100-mile radius of Grenada, Grenada Bank controlled only

5.2 percent of the total IPC deposits held by all offices of the 114 commercial 

banks represented there. The proposed merger would increase this share to 5.6 

percent. In the State as a whole, Grenada Bank holds only 3.0 percent of all 

Mississippi commercial bank IPC deposits, and the proposed merger would raise 

this figure to 3.3 percent. In view o f these figures, it appears that the proposed 

merger would have no significant effect on the structure of commercial banking in any relevant area.

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 

com petition, 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. Greenwood Bank has had problems w ith its financial and managerial resources which the proposed merger 

would resolve. The resulting bank would have satisfactory financial and managerial resources and favorable future prospects.

Convenience and Needs o f the Community to be Served. The proposed 

merger would bring to Greenwood Bank's customers a broader selection of 

banking services which include a lending lim it o f nearly $1.5 m illion, trust and 

computer services, and the general banking expertise of a competent staff of 

experienced banking personnel. It should also stimulate com petition w ith the 

First National Bank o f Jackson's branches as well as the State's largest commercial bank which w ill soon be represented locally. This could have a salutary 

effect on the quality of banking services offered to Greenwood residents and 

businessmen.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

th ousands 

o f d o lla rs )

B a n kin g O ffic e s

I n

o p e ra tio n

T o be 

o pe ra te d

First-Citizens Bank & Trust Company

Raleigh, North Carolina

1,175,033 200 202

to merge with

The Bank of Commerce

Charlotte

9,635 1

and

The Bank of Coleridge

Ramseur

6,010 1

Summary report by A ttorney General, May 16, 1974 

The impact of this proposed transaction w ill be fe lt prim arily in the city of 

Charlotte, Mecklenburg County, where Applicant operates 12 offices and Bank 

maintains its only office. Applicant's nearest branch is located about one block 

from Bank's (of Commerce) headquarters office. Thus, the proposed merger 

would eliminate some existing com petition.

Applicant ranks fourth among the 14 banks w ith offices in Charlotte holding approximately 3 percent of total city deposits. Bank (of Commerce) ranks 

ninth among the 14 banks in the city, accounting fo r less than 1 percent of 

total city deposits. Thus, while the proposed merger would eliminate existing 

com petition between Applicant and Bank (of Commerce) in Charlotte and in 

surrounding Mecklenburg County, it does not appear that the transaction 

would substantially increase concentration in commercial banking in that area.

Accordingly, we conclude that the proposed transaction would not have a 

substantial competitive impact.

Summary report by Attorney General, May 15, 1974 

Applicant's office nearest Bank (of Coleridge) is located in Thomasville, 

Davidson County, about 27 miles northwest of Ramseur. Thus, it does not 

appear that the proposed transaction would eliminate substantial existing competition. And while Applicant could legally establish de novo branches in the 

Randolph County area served by Bank (of Coleridge), the latter's small absolute size and modest market position in Randolph County diminish the effect 

of this proposed merger on potential competition.

Therefore, we conclude that the proposed transaction would not have a 

substantial competitive impact.

Basis for Corporation approval, August 30, 1974 

First-Citizens Bank & Trust Company, Raleigh, North Carolina ("C itizens"), 

an insured State nonmember bank w ith total resources of $1,175,033,000 and

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 115

IPC deposits of $803,305,000, has filed applications, pursuant to Section 18(c) 

and other provisions of the Federal Deposit Insurance Act, seeking the Corporation's prior w ritten consent to Citizens' mergers under its charter and title 

w ith the follow ing tw o banks:

(1) The Bank of Commerce, Charlotte, North Carolina ("Bank o f Commerce"), a State member bank w ith total resources of $9,635,000 

and IPC deposits of $6,557,000; and

(2) The Bank of Coleridge, Ramseur, North Carolina ("Bank of Coleridge"), an insured State nonmember bank w ith total resources of 

$6,010,000 and IPC deposits of $4,809,000.

As an incident to each merger, the sole office of each of the latter two 

banks would be established as a branch of the resulting bank.

Competition. Citizens is the fourth largest commercial bank in North Carolina. It has some 200 offices widely distributed throughout the State and holds 

8.53 percent of the State's total commercial bank deposits. The control shareholders of Citizens have owned a controlling share of Bank of Commerce since 

1966 and purchased control of Bank of Coleridge in November 1973.

Bank of Commerce has its sole office in Charlotte (population 241,178), the 

largest city in North Carolina and the leading center o f trade in the Carolina. A 

total of 22 commercial banks have 191 offices in the Charlotte-Gastonia 

SMSA, a 3-county metropolitan area of which Charlotte is the core city. Of the 

IPC deposits held by these offices, Bank of Commerce has the 15th largest 

share, 0.3 percent, while Citizens has the 6th largest share, 3.3 percent. The 

major IPC deposit shares o f this market, 50.1 percent, 18.0 percnet, and 10.3 

percent, are held by the second, third, and first largest of North Carolina's 

commercial banks, respectively.

In the city of Charlotte, Citizens has a total of 12 branches, including 2 in 

close proxim ity to Bank of Commerce's only office. While the three offices 

obviously draw from an overlapping area, the proposed merger of Citizens and 

Bank of Commerce would have scant competitive significance in view of the 

very small share of the market Bank of Commerce holds, the area deposits 

concentrated in the State's three larger banks, and the presence in the SMSA of 

many convenient alternatives for banking service. Citizens, follow ing the 

merger, would hold 3.6 percent of the IPC deposits of all commercial bank 

offices in the SMSA and in this respect would continue to have the sixth largest 

share of the market.

Bank of Coleridge operates its sole office in Ramseur (population 1,328), a 

textile town in central North Carolina some 29 road-miles south o f Greensboro 

and 60 road-miles west of Raleigh. Within a 15-road-mile radius of Ramseur, 8 

commercial banks now maintain a total of 19 offices. Bank of Coleridge has 

the fifth largest share, 4.5 percent, of area IPC deposits held by these banks. 

The Fidelity Bank, headquartered in Fuquay-Varina and recently affiliated 

w ith Bank of Coleridge through common ownership, has a branch in Liberty, 

some 10 road-miles northeast of Ramseur. This branch holds 1.5 percent of the 

IPC deposits held by commercial bank offices in the market area served by 

Coleridge. Combined the market shares of Bank of Coleridge and The Fidelity 

Bank, 6.0 percent, represent the fifth largest share of the relevant market, 

substantially smaller than the four larger shares, 30.2 percent, 27.5 percent, 

22.4 percent, and 11.9 percent.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

There appears to be no significant existing com petition between Citizens 

and Bank of Coleridge. Although Citizens has nine branches in Greensboro, 

some 29 road-miles north of Ramseur, and one branch in Pittsboro, a similar 

distance east of the town (no other branch of Citizens is closer to Ramseur), 

other banks intervene in both directions.

It further appears that neither of the proposed mergers would result in the 

elimination of any significant potential com petition between the three banks 

involved. Bank of Commerce and Citizens have such small shares of the 

Charlotte-Gastonia market, and there are so many other banks in the market, 

that the merger of these tw o should have almost no effect on the establishment 

of de novo offices in the market in the future, thereby assuring vigorous 

competition. In the case of Bank of Coleridge, its banking market presently has 

one commercial banking office fo r each 2,000 inhabitants, a factor which 

would be likely to deter any effort by Citizens to enter this market de novo in 

the foreseeable future.

As previously noted, Citizens has 8.53 percent (the fourth largest share) of 

the aggregate deposits held on June 30, 1974, by all commercial banks in 

North Carolina. The three largest banks in the State held 21.56 percent, 18.41 

percent, and 12.56 percent, respectively, of such deposits. Citizens' share of 

such deposits would increase 0.07 percent by its merger w ith Bank of Commerce and 0.05 percent by its merger w ith Bank of Coleridge. The resulting 

share, 8.65 percent, would continue to be substantially less than those of its 

three larger competitors.

For the reasons stated, the Board of Directors is of the opinion that the 

proposed mergers would not, in any section of the country, substantially lessen 

com petition, tend to create a monopoly, or in any other manner be in restraint 

of trade.*

Financial and Managerial Resources; Future Prospects. The financial resources of Citizens, Bank of Commerce, and Bank o f Coleridge are adequate. 

Managerial resources of Citizens are satisfactory. Future prospects of the resulting bank are favorable.

Convenience and Needs o f the Communities to be Served. In the city of 

Charlotte, the merger of Citizens and Bank o f Commerce would appear to have 

insufficient significance to weigh either in favor of or against approval of the 

proposed transaction. Citizens' acquisition of Bank of Coleridge has already 

resulted in a more aggressive management at the Ramseur location. This management, operating w ith a greatly increased credit capability, a much larger 

lending lim it, and offering the specialized loan and trust services of one of the 

State's major banks, should serve to stimulate com petition in the local market 

to the benefit of inhabitants and businessmen alike.

Based on the foregoing, the Board of Directors has concluded that approval 

of the two applications is warranted.

*T h e C o rp o ra tio n , d u rin g c o n s id e ra tio n o f th e s u b je c t a p p lic a tio n s , has ig n o re d th e fa c t 

th a t all th re e banks are p re s e n tly u n d e r c o m m o n c o n tro l, since th e a c q u is itio n o f s to c k 

c o n tro l in B ank o f C o m m e rce and B ank o f C o le rid g e has n o t p re v io u s ly been re view ed 

u n d e r th e Bank M erger A c t (as a m en d e d).

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 117

R esources

(in

thousands 

o f d o lla rs)

B a n k in g O ffic e s

In

o p e ra tio n

T o be 

o pe ra te d

The State Bank of Avis

Avis, Pennsylvania

21,963 2 3

to merge with

The Loganton National Bank

Loganton

4,247 1

Summary report by A ttorney General, May 3, 1974 

The parties to this proposed merger are both headquartered in Clinton 

County. Loganton Bank is situated in the southeastern part of the county 

about 21 miles southwest of Avis Bank's headquarters and approximately 10 

miles southeast of Avis Bank's Woodward Township branch. Thus, the proposed acquisition may eliminate some existing com petition in southeastern 

C linton County. However, it does not appear that the proposed transaction 

would substantially increase banking concentration in any relevant market.

Basis for Corporation approval, August 30, 1974 

The State Bank of Avis, Avis, Pennsylvania ("Avis Bank"), a State nonmember insured bank w ith total resources of $21,963,000 and total IPC deposits of $17,044,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior 

consent to merge w ith The Loganton National Bank, Loganton, Pennsylvania 

("Loganton Bank"), w ith total resources of $4,247,000 and total IPC deposits 

of $3,702,000. These banks would merge under the charter and title of Avis 

Bank and, as an incident to the merger, the sole office of Loganton Bank 

would be established as a branch of the resulting bank, thereby raising to three 

the total number o f its offices.

Competition. Avis Bank operates its main office in Avis Borough (1970 

population 1,749) and its only branch in Woodward Township (1970 population 2,427), 7 miles southwest of the main office, both in southeastern Clinton 

County. Population of this central Pennsylvania county totaled 37,721 in 

1970, virtually unchanged from 1960. Much of the county's northern portion 

is mountainous, sparsely populated State forest and game lands. The population is concentrated in the southern half of the county, in residential-industrial 

communities of the Susquehanna River Valley. Avis Bank serves southern C linton County and the borough of Jersey Shore and its close environs in adjoining 

southwestern Lycoming County, all o f which are communities north of the 

Susquehanna River. In these communities and in Lock Haven (1970 population

11,427), Avis Bank competes w ith three significantly larger banks and one of 

approximately the same deposit size. The 1973 median buying levels in both 

Clinton County ($8,492) and Lycoming County ($8,567) were both significantly below those o f the State as a whole ($9,588).

Loganton Bank serves communities along the extreme southern border of 

Clinton County, south of the Susquehanna River and separated from Woodward, Avis, and Jersey Shore by d iffic u lt mountain terrain. The bank alternatives closest to Loganton (1970 population 436) are the Mill Hall branch of 

the $89.9-million-deposit Central Counties Bank, 13 road-miles northwest of

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Loganton, and the Rebersburg Branch of the $43.8-million-deposit The Peoples 

National Bank of Central Pennsylvania, 11 miles southwest of Loganton.

The main office of Avis Bank and its branch are, respectively, 22 road-miles 

north and 19 road-miles northwest, of Loganton. Although it appears that the 

area served by Avis Bank overlaps that of Loganton Bank, neither draws any 

significant volume o f business from the service area of the other, and the 

terrain places them in essentially separate markets. Accordingly, no significant 

existing com petition would be eliminated by their proposed merger.

Although Pennsylvania law permits both banks to branch de novo throughout Clinton County and the six adjoining counties, there appears to be minimal 

potential for increased com petition between them in the future by this means 

of expansion. Loganton Bank would be inhibited from such de novo activity 

by a lack of financial and managerial resources. Avis Bank, fo r its part, would 

not find de novo entry into the Loganton market attractive because of the 

sparse population and low income levels prevailing.

Within the 7-county region in which Avis Bank may expand de novo or by 

merger (its maximum market since State law does not perm it operation of 

multi-bank holding companies), a total of 42 commercial banks operate 97 

offices and held area IPC deposits on June 30, 1973, aggregating $849.7 m illion. Avis Bank had 2.1 percent— the 16th largest share— of such deposits. The 

resulting bank would hold only 2.5 percent— the 13th largest share— of such 

deposits.

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 

com petition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. The resulting bank 

would have adequate financial and managerial resources. Its future prospects 

would be satisfactory.

Convenience and Needs o f the Community to be Served. Effects of the 

proposed merger would be most apparent in the Loganton market. The merger 

would make available services of an institution whose lending capability 

($215,000 rather than $31,000) and more aggressive management should contribute to the area's development, meanwhile stimulating com petition w ith 

neighboring banks.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources 

(in 

th o u san d s 

o f d o lla rs)

B a n kin g O ffic e s

I n

o p e ra tio n

T o be 

o pe ra te d

American Bank and Trust Co. of Pa.

Reading, Pennsylvania

1,017,510 48 50

to merge with

State Bank of Paradise

Paradise

12,279 2

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 119

Summary report by A ttorney General, May 17, 1974

American Bank's tw o Lancaster County offices are located in western and 

northeastern Lancaster County, respectively, and account fo r approximately 3 

percent of total county deposits. Two offices, to be located in the city of 

Lancaster in the central part of the county, have been approved but not 

opened. Paradise Bank's main office is located about 10 miles southeast of 

Lancaster C ity, and its Greenfield branch is located just outside the Lancaster 

city limits. The nearest offices of the parties, American Bank's Columbia 

branch and the Paradise Bank's Greenfield branch, are separated in the intervening area.

Although American Bank can be expected to continue to increase its competitive efforts in Lancaster County, we do not believe that the proposed 

transaction would result in any significant elimination of com petition or increase in banking concentration therein.

Basis for Corporation approval, August 30, 1974

American Bank and Trust Co. of Pa., Reading, Pennsylvania ("A m erican"), 

a State nonmember insured bank w ith total resources of $1,017,510,000 and 

total IPC deposits of $786,619,000, has applied, pursuant to Section 18(c) and 

other provisions of the Federal Deposit Insurance Act, for the Corporation's 

prior consent to merge w ith State Bank of Paradise, Paradise, Pennsylvania 

("Paradise Bank"), w ith total resources o f $12,279,000 and total IPC deposits 

of $10,831,000, under the charter and title of American. As an incident to the 

merger, the main office and only branch of Paradise Bank would become 

branches of the resulting bank, increasing the number o f its authorized offices 

to 52.

Competition. American operates 48 offices in the 7 counties where it may 

legally branch or merge under Pennsylvania law, i.e., Berks, Chester, Lancaster, 

Lebanon, Lehigh, Montgomery, and Schuylkill Counties. Until recently, Am erican had only tw o offices in Lancaster County, located at opposite ends of the 

county. In August, however, it established a de novo branch in western Lancaster city. American also has approval to establish one more de novo branch in 

downtown Lancaster and one de novo branch in Berks County. American is an 

aggressive, full-service bank w ith a large trust department.

Paradise Bank operates its main office in Paradise (1970 population 3,751), 

about 10 miles east of Lancaster (1970 population 57,690, a decline of 5.5 

percent from 1960), and its only branch is located in a residential area in 

eastern Lancaster.

The city of Lancaster is centrally located in Lancaster County, which is 

coterminous w ith the Lancaster SMSA. The county had a 1970 population of 

320,079, an increase of 15.0 percent from 1960, far in excess of the 4.2 

percent increase fo r the State as a whole. The 1973 median household buying 

level for Lancaster County was $9,901, some 3.3 percent higher than the State 

figure. Lancaster County is economically active and has a wealth of good 

farmland as well as a significant industrial base. As the home of the Pennsylvania Dutch, the county is also one of the major tourist attractions in the 

United States.

The effects of the proposed merger would be confined to Lancaster County. 

Seventeen commercial banks operate 85 offices in the county, and the 4 largest 

such banks (in terms of the local deposit market) control 64.9 percent of the

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

$875 m illion aggregate in commercial bank IPC deposits. American has a modest presence in the market at this time w ith only 3.1 percent of such aggregate 

IPC deposits. The addition of Paradise Bank's 1.1 percent share of the market 

to American's small share would obviously not disturb the local structure of 

commercial banking.

The closest existing office of American to either office of Paradise Bank is 

its newly opened branch on the west side of the city of Lancaster, and many of 

the city's commercial banking offices lie in between. Further, neither of the 

participating banks generates any significant volume of business from areas 

presently served by the other. The proposed merger therefore would not elim inate any significant existing com petition between the two banks.

The proposed merger would eliminate the potential for increased competition to develop between American and Paradise Bank in the future. A lthough Paradise Bank has only limited financial and managerial resources for 

de novo expansion into areas served by American, the latter clearly has the 

capacity for such expansion w ithin the market as demonstrated by the fact 

that it recently established one de novo branch and has another under construction in the city of Lancaster. The latter is expected to be opened this year, 

and it is only about 4 miles west of Paradise Bank's branch. However, in view 

of the numerous commercial banking offices which lie between these two 

locations, the small share of the Lancaster County market the resulting bank 

would have, and the numerous potential entrants presently unrepresented in 

Lancaster County, the elimination of this potential com petition is not viewed 

as competitively significant.

W ithin the 7-county area where American may branch or merge, there are 

over 500 offices of 81 commercial banks. As of June 30, 1973, these offices 

held over $5 billion in total IPC deposits, w ith American having 13.1 percent 

of the total commercial bank IPC deposits held in these 500-plus offices. While 

American's percentage of such deposits places it in the first-ranking position, 

there are six commercial banks w ith total resources in excess o f$ 1 billion each 

(including three w ith total resources over $2.5 billion) which operate, or have 

the authority to operate, offices in four of the seven counties in which Am erican has offices (Chester, Berks, Lehigh, and Montgomery Counties). In addition, another 22 commercial banks, each w ith total resources in excess of $100 

m illion may branch into various portions of American's trade area. Thus, 

American is faced w ith many significant competitors throughout its service 

area, and the proposed merger, which would add only 0.2 percent to Am erican's share of commercial bank IPC deposits w ithin the seven-county area, 

would not significantly affect the structure of commercial banking in this 

larger area.

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 

com petition, 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 Paradise Bank the broad 

range of services of a large commercial bank, such as significantly larger lending

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 121

limits, bank credit card services, computer services, trust services, and a more 

complete line of credit services.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

R esources

(in

th o u san d s 

o f d o lla rs)

B a n kin g O ffic e s

I n

o p e ra tio n

T o be 

o p e ra te d

Northeastern Bank of Pennsylvania

Scranton, Pennsylvania

475,717 13 14

to merge with

The Plymouth National Bank

Plymouth

30,459 1

Summary report by A ttorney General, May 6, 1974 

Northeast Bank operates three offices in Luzerne C ounty— one in WilkesBarre in the north-central part of the county and tw o in Hazleton in the far 

southern part of the county. Plymouth National Bank is located approximately 

4 miles west of Northeast Bank's Wilkes-Barre office and 20 miles northeast of 

Northeast Bank's Hazleton offices. The proposed acquisition would appear to 

eliminate existing com petition between the banks in the northern part of the 

county, particularly in the Wilkes-Barre area, and would somewhat increase 

concentration in commercial banking therein.

Basis for Corporation approval, August 30, 1974 

Northeastern Bank of Pennsylvania, Scranton, Pennsylvania ("N o rth ­

e a s te rn "), a State nonmember insured bank w ith total resources of 

$475,717,000 and total IPC deposits of $383,043,000, 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 w ith The 

Plymouth National Bank, Plymouth, Pennsylvania ("Plym outh N ational"), 

w ith total resources of $30,459,000 and total IPC deposits of $25,152,000. 

Northeastern, as an incident to the merger, would establish the sole office of 

Plymouth National as a branch. The resulting bank would have a total of 14 

offices.

Competition. Northeastern operates a total of 13 offices: its main office and 

4 branches in Lackawanna County, 5 branches in Monroe County, and 3 

branches in Luzerne County. Northeastern is the largest commercial bank operating in this three-county region of northeastern Pennsylvania, although two 

other commercial banks, both w ith extensive representation w ithin the market, 

individually control IPC deposits in their area offices of more than $235 m illion.

Plymouth National maintains its sole office in Plymouth Borough (1970 

population 9,536— down 8.3 percent from 1960) in Luzerne County. This 

county is a portion of a region which was dominated for many years by 

anthracite mining until this industry declined during the 1950s and early 1960s. 

Presently the textile industry offers employment to many local residents while

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

others find work in Wilkes-Barre (1970 population 58,856), the county seat 

and center of trade, located some 5 road-miles northeast of Plymouth. Income 

levels of the county are about 13 percent below the State level. Economic 

recovery in the area has been further hampered by the lingering effects of 

1972's severe flood damage.

The proposed merger would have its most immediate and direct impact 

w ithin a 10-mile radius of Plymouth along the Susquehanna River Valley to ­

ward Pittston on the northeast and Nanticoke to the southwest. This relatively 

populous banking market includes Wilkes-Barre but not Scranton. Fifteen commercial banks operate a total of 45 offices in this relevant geographic market 

w ith IPC deposits aggregating approximately $900 m illion. Plymouth National 

has the ninth largest share (2.9 percent) of these deposits; Northeastern, the 

sixth largest share (4.4 percent). The tw o largest IPC deposit shares, 31.1 

percent and 20.4 percent, are held, respectively, by the $348.6-million-IPCdeposit United Penn Bank and the $259.1-million-IPC-deposit The First National Bank of Eastern Pennsylvania, which between them also have about half 

of the commercial bank offices in the market. Both of these banks are headquartered in Wilkes-Barre. The banks w ith the third and fourth largest shares of 

this local banking market hold, respectively, 9.7 percent and 8.2 percent of 

such IPC deposits. The resulting bank would hold the fifth largest share (7.3 

percent) of such commercial bank IPC deposits.

The merging banks each have one office in this relevant geographic market, 

and these offices are located about 4 miles apart, although they are separated 

by the Susquehanna River. Given prevailing commuting patterns, it appears 

that some existing com petition between the two banks would be eliminated by 

their proposed merger, but this appears to have limited competitive significance 

in view of the small share of area IPC deposits held by Plymouth National and 

the number of convenient alternatives fo r banking services which would remain 

in the relevant market follow ing consummation of the proposed merger.

A commercial bank in Pennsylvania may legally branch de novo or merge 

throughout the county where its main office is located and all counties contiguous thereto. Thus, Northeastern and Plymouth National may establish de

novo offices at locations which would result in increased com petition between 

them. Plymouth National, however, has operated as a unit bank fo r many years 

and is now under the conservative policies of an aging management; it is not 

likely to engage in any significant de novo expansion. Northeastern, w ith more 

promising locations available elsewhere for de novo branching, appears unlikely 

to increase the number of its offices w ithin Plymouth National's market in 

view of the declining population, substantially below average buying levels, and 

sluggish economy. Little potential for increased com petition between the two 

banks through de novo branching in the future is likely to be eliminated, 

therefore, by the proposed merger.

W ithin the 6-county region in which Northeastern may expand de novo or 

by merger (its maximum potential market since Pennsylvania law does not 

perm it the operation of multibank holding companies), a total of 52 commercial banks now operate 164 offices and hold area IPC deposits aggregating 

$2,343 m illion. Northeastern has the largest share (15.4 percent) o f such deposits and 7.9 percent of the commercial bank offices in the region. The 

proposed merger would increase Northeastern's IPC deposit share of this market to 16.5 percent, while the four next ranking banks would hold in the

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 123

aggregate 32.7 percent of such deposits. This six-county region is, thus, not one 

of substantial concentration, and the proposed merger would not have a significant adverse effect on commercial bank structure in the region.

Under these circumstances, the Board o f Directors is of the opinion that the 

proposed merger would not, in any section of the country, substantially lessen 

com petition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. The resulting bank 

would have adequate financial and managerial resources. Its future prospects 

would be satisfactory.

Convenience and Needs o f the Community to be Served. The merger would 

result in no significant change in the services now available to Northeastern's 

customers. Customers of Plymouth National, however, would benefit from an 

expansion of commercial bank services, including a greatly increased lending 

lim it and more sophisticated loan services, as well as trust facilities and computer services.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

R esources

(n

th ousands 

o f d o lla rs)

B a n k in g O ffic e s

I n

o p e ra tio n

T o be 

o p e ra te d

United Penn Bank

Wilkes-Barre, Pennsylvania

428,050 18 20

to purchase the assets and assume

the deposit liabilities o f

The Miners Bank and Trust Company

of West Hazleton, Pa.

West Hazleton

12,914 2

Summary report by A ttorney General, August 29, 1974 

United Penn currently has no offices in Lackawanna County. The main 

offices of the parties are located approximately 20 miles apart. Their nearest 

branches are separated by a distance of about 10 miles, w ith several com petitive alternatives in the intervening area. Although the proposed merger may 

eliminate some existing com petition, it does not appear that concentration 

would be substantially increased in any relevant banking market.

While United Penn, the largest bank in Luzerne County, may legally branch 

de novo into the area served by Westside Bank, the economy of that area has 

been on the decline since 1930. While there are currently some signs of im ­

provement, the region is not one of the stronger growth centers of Pennsylvania. Lackawanna County is currently served by 16 other banks; Westside 

Bank is fifth largest w ith only 4.8 percent of total deposits. In view o f its 

relatively modest market position, we conclude that the proposed transaction 

would not eliminate significant potential com petition.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Basis for Corporation approval, August 30, 1974

United Penn Bank, Wilkes-Barre, Pennsylvania ("U nited Penn"), a State 

nonmember insured bank w ith total resources of $428,050,000 and total IPC 

deposits of $348,622,000, has applied, pursuant to Section 18(c) and other 

provisions o f the Federal Deposit Insurance Act, for the Corporation's prior 

w ritten consent to purchase the assets of, and assume the liability to pay 

deposits made in, The Miners Bank and Trust Company of West Hazleton, Pa., 

West Hazleton, Pennsylvania ("Miners Bank"), a State nonmember insured 

bank w ith total resources of $12,914,000 and IPC deposits of $11,818,000, 

under the charter and w ith the title of United Penn. The main office and only 

branch of Miners Bank would become branches of the resulting bank, increasing the number of its offices to 20.

Competition. United Penn is now operating 18 banking offices in 3 northeastern Pennsylvania counties. The main office and 10 branches are located in 

Wilkes-Barre and the Wyoming Valley area in central Luzerne County, 3 

branches are in Wyoming County, and there are 4 branches in Columbia County. Miners Bank operates its main office and only branch in West Hazleton, in 

the extreme southern portion of Luzerne County.

The population of Luzerne County 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 

county now has diversified industrial activity. Income levels in Luzerne County 

are about 12.7 percent below the statewide level. West Hazleton's 1970 population was 6,059, down 3.5 percent from 1960. It is adjacent to Hazleton which 

had a 1970 population of 30,426, o ff 5.1 percent from 1960.

The local banking market which would be most affected by the proposed 

transaction may be approximated by the area which includes West Hazleton, 

Hazleton, Conygham, Drums, and Nuremberg. In this market, there are 18 

offices of 6 commercial banks which have an aggregate of $198 m illion in IPC 

deposits. Miners Bank, an unaggressive com petitor, has 5.6 percent of these 

deposits, the fifth largest share, and is by far the smallest commercial bank 

represented there. Four of the banks represented in Miners Bank's market are 

among the 10 largest in United Penn's legal branching area, and 2 of these are 

larger than United Penn in terms of total deposits. Inasmuch as United Penn is 

not now represented in the local market and is succeeding to a relatively small 

share of local IPC deposits, the proposed transaction should have no adverse 

effect on the local commercial banking structure and may in fact stimulate 

competition locally.

The closest offices o f United Penn to offices of Miners Bank are at Berwick, 

about 15 miles west of West Hazleton, and M ountaintop, about 18 miles north 

of West Hazleton. Rugged terrain separates these locations from West Hazleton, 

and each is naturally oriented to other areas. Further, each bank derives only a 

nominal amount o f business from areas served by the other. It is apparent that 

United Penn and Miners Bank operate in different banking markets and that 

the proposed transaction would not eliminate any significant existing com petition between them.

While Pennsylvania law would legally entitle either bank to branch de novo

into areas presently served by the other, this does not appear to bo probable

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 125

under the circumstances presented. Miners Bank recently demonstrated its inability to pursue this course when it was forced to abandon plans for a de novo

branch in Slocum Township, Luzerne County, because it was unsuccessful in 

raising the required capital which was a condition o f the approval. United Penn 

undoubtedly has the resources fo r de novo branching, but it is unlikely to seek 

to enter the Hazleton area in this manner because of the declining population, 

the lower-than-average income levels, and the d ifficu lty and expense o f penetrating a new market which already has a number o f significant competitors. 

There are undoubtedly other more attractive areas which United Penn would 

choose to more effectively utilize its resources. The proposed transaction therefore would not eliminate any significant potential for increased com petition in 

the future between United Penn and Miners Bank as a result of de novo

branching.

W ithin the 8-county area where United Penn may legally establish branches 

(its greatest potential market), 71 commercial banks operate 224 offices. A 

Scranton-based bank holds the largest share of this market, w ith 12.4 percent 

of the area's total IPC deposits. The second largest share, 11.4 percent, is held 

by United Penn, and its share after consummation of the proposed purchase 

and assumption would be 11.8 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 com petition, tend to create a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. United Penn has, and 

the resulting bank would have, adequate financial and managerial resources, 

and each has favorable future prospects. Miners Bank's future prospects would 

appear to be more favorable as part of the resulting bank than operating 

independently.

Convenience and Needs o f the Community to be Served. Customers of 

Miners Bank would benefit from a full range of specialized lending services, a 

considerably larger lending lim it, trust services, credit card services, and higher 

rates of interest paid on savings and time deposits. The general public in the 

Hazleton area should benefit from a more competitive banking environment.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

R esources (in

B a n k in g O ffic e s

v i n 

th o u san d s 

o f d o lla rs)

In

o p e ra tio n

T o be 

o pe ra te d

Community Banking Company

North Branford, Connecticut

26,020 5 8

to merge with

Deep River Bank and Trust Company

Deep River

13,438 3

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Summary report by A ttorney General, June 19, 1974

Com m unity Banking's offices are located in southern Connecticut in the 

area east of New Haven. Deep River Bank's offices are about 15 miles east of 

Community Banking's nearest office in Madison. There appears to be some 

com petition between these banks, especially in the intervening towns of Killingworth, C linton, and Westbrook. However, it does not appear that the proposed merger would substantially increase concentration in commercial banking in any relevant market. Thus, we conclude that the proposed transaction 

would not have a significant adverse effect on competition.

Basis fo r Corporation approval, September 18, 1974

Com m unity Banking Company, North Branford, Connecticut ("C om m unity "), an insured State nonmember bank w ith total resources of $26,020,000 

and IPC deposits of $19,415,000, has applied, pursuant to Section 18(c) and 

other provisions of the Federal Deposit Insurance Act, fo r the Corporation's 

prior consent to merge w ith Deep River Bank and Trust Company, Deep River, 

Connecticut ("Deep River"), w ith total resources of $13,438,000 and IPC 

deposits of $10,043,000. The banks would merge under the charter o f Comm unity and the three offices of Deep River would be operated as branches of 

the resultant bank. Community has also applied for consent to exercise full 

trust powers.

Competition. Com m unity operates a total of five offices: four are located in 

New Haven County (population 744,948) and one is in Middlesex County 

(population 115,018). Community also has regulatory approval for one additional branch to be located in New Haven County. Each of Deep River's three 

offices is located in Middlesex County. Both counties are located in the southcentral area of the State and each experienced healthy population growth in 

the 1960s. Com m unity and Deep River both serve prim arily residential areas in 

which the importance of agriculture as a source of employment is declining as 

the population increases, new industry is established, and commercial development takes place.

The main offices of the tw o banks are 19 miles apart and their closest 

offices are 14 miles apart. The only com petition existing between applicants is 

in the towns of K illingw orth, Clinton, and Westbrook, which constitute the 

area of overlap of the local service areas. These communities contribute only a 

moderate amount to the deposit or loan structure of either bank, and the 

proposed merger would eliminate no significant degree of existing com petition.

There are 7 other commercial banking alternatives, operating 21 offices, in 

the combined area of applicants, the area where the proposed merger would 

have its greatest competitive impact. Six of the seven are out-of-area banks 

operating 20 offices as branches. A ll of the out-of-area banks are among the 10 

largest commercial banking organizations in the State or are affiliated w ith 

them. The resultant bank w ith 21.6 percent of total IPC deposits would have 

the largest share o f such deposits in the combined service area, but five of the 

six out-of-area banks would have market shares ranging from 12.4 to 17.2 

percent of such IPC deposits. In view of the nature of its com petition, the 

resultant bank's percentage of the market undoubtedly overstates its com petitive influence w ithin the market.

State law allows for statewide de novo branching subject to home office 

protection. Thus, neither o f the tw o banks proposed to be merged may branch

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 127

de novo into the main office com m unity of the other. Although increased 

com petition between the tw o banks via de novo branching is possible in other 

communities, it appears unlikely in the foreseeable future due to their relatively limited resources, the scarcity of locations not subject to home office 

protection, and the competitive situation w ith which each is confronted. The 

proposed merger would, however, open Deep River to de novo branching by 

other commercial banks.

Based on the foregoing, the Board of Directors has concluded that the 

proposed merger would not, in any section of the country, substantially lessen 

com petition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Both Com m unity 

and Deep River have adequate financial and managerial resources and favorable 

future prospects, as would the resultant bank.

Convenience and Needs o f th& Community to be Served. The proposed 

merger would expand trust services for Deep River's customers and extend 

such services to Community's present customers. Significantly larger lending 

limits and a broader range of commercial bank services than are now offered by 

either bank would be available to all customers of the resultant bank. The 

merger would also provide an additional alternative fo r these services in competition w ith the large statewide commercial banks w ith offices in the area.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

R esources 

(in 

thousands 

o f d o lla rs)

B a n k in g O ffic e s

I n

o p e ra tio n

T o be 

o p e ra te d

Central Counties Bank

State College, Pennsylvania

104,404 9 18

to merge with

The First National Bank of Altoona

Altoona

90,143 9

Summary report by A ttorney General, May 22, 1974 

Central Counties Bank is headquartered in State College, about 36 miles 

northeast of Altoona, where Altoona Bank is headquartered, and about 20 

miles northeast of Altoona Bank's branch in Tyrone. There are two com petitive alternatives in Tyrone and tw o in the area intervening between Tyrone and 

State College. Thus, it does not appear that the proposed merger would elim inate substantial existing com petition or significantly increase concentration in 

any banking market.

Central Counties Bank is one of only a few substantial banks that may 

legally branch de novo into Blair County, where Altoona Bank is the second

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

largest of five banks and holds approximately 26 percent of total county 

deposits. Sim ilarly, Altoona Bank may legally branch into adjacent Centre 

County, where Central Counties Bank ranks second among the 12 banks w ith 

offices in the county and holds approximately 20 percent of total county 

deposits. Thus, we conclude that the proposed merger may have some adverse 

effects on potential com petition in central Pennsylvania.

Basis fo r Corporation approval, September 18, 1974

Central Counties Bank, State College, Pennsylvania, a State nonmember 

insured bank w ith total resources of $104,404,000 and IPC deposits of 

$74,416,000, has applied, pursuant to Section 18(c) and other provisions of 

the Federal Deposit Insurance Act, for the Corporation's prior w ritten consent 

to merge w ith The First National Bank of Altoona, Altoona, Pennsylvania 

("FN B A ltoona” ), w ith total resources of $90,143,000 and IPC deposits of 

$75,591,000. The banks would merge under the charter and title of Central 

Counties Bank. The resulting bank, w ith the 9 offices of FNB Altoona established as branches, would operate a total of 18 offices.

Competition. Central Counties Bank has nine offices in two of the seven 

counties which are open to it under Pennsylvania law for branching or merging. 

The main office and three branches are located in State College (population 

33,778) and its close environs in southern Centre County, w ith one office in 

Milesburg (population 1,196), some 14 road-miles to the north. In Clinton 

County, which lies immediately north of Centre County, three offices are 

operated in Lock Haven (population 11,427) and in suburban Mill Hall (population 1,838) and one office is operated in Renovo (population 2,620), 20 

road-miles northwest of Lock Haven. These two mid-Pennsylvania counties had 

a combined 1970 population of 136,988, an increase of some 17.9 percent 

during the 1960s. The 1973 median household incomes for Centre County 

($9,014) and Clinton County ($8,492) lagged the statewide figure of $9,588. 

The Pennsylvania State University is the major economic influence in the State 

College area, while agriculture and mixed industry are significant throughout 

the tw o counties.

FNB Altoona operates its nine offices in Blair County (1970 population 

135,356, o ff 1.4 percent during the 1960s): six in Altoona (population 63,115) 

and its suburbs and one office each in Hollidaysburg (population 6,262), 4 

miles southeast of Altoona; Roaring Spring (population 2,811), 14 road-miles 

to the southeast; and Tyrone (population 7,072), 18 miles to the northeast. 

Blair County is situated immediately southwest of Centre County. Altoona 

developed as a railroad town and the Penn Central Company continues to be 

one of the major factors in the county's mixed industrial-agricultural economy. 

Income levels in Blair County are about 7.5 percent below those of the State as 

a whole.

Major competitors fo r Central Counties Bank in its two-county primary 

trade area include the $172.1-million-deposit Mid-State Bank and Trust Company, Altoona; the $51.3-million-deposit The Peoples National Bank of Central 

Pennsylvania, State College; and the $94.8-million-deposit Fidelity National 

Bank of Pa., W illiamsport. FNB Altoona is not represented in either Clinton or 

Centre County.

The competitive effect of the proposed merger would be most immediate 

and direct in Blair County. This county, which comprises the Altoona SMSA, is

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 129

the primary trade area of FNB Altoona. Offices of the 5 commercial banks in 

this market, now totaling 32, hold aggregate IPC deposits of $265.6 m illion. 

FNB Altoona is the second largest commercial bank in this market, controlling 

approximately 28.5 percent o f such deposits. Mid-State Bank and Trust Company, also headquartered in Altoona, holds the largest share of such deposits 

(41.5 percent) and operates 10 offices in the market. Central Counties Bank is 

not represented in Blair County.

Some 29 road-miles separate FNB Altoona's branch in Tyrone from the 

closest office of Central Counties Bank. Two other commercial banks have 

offices in the intervening area. People of the Tyrone area travel south to 

Altoona for shopping and entertainment and have numerous convenient banking alternatives in the area south of Tyrone. State College, on the other hand, is 

the established trading center of southern Centre County and inhabitants of 

the area would have little incentive to shop elsewhere or to seek alternative 

bank choices beyond those available in the local market. The two banks, thus, 

operate in separate banking markets and neither draws a significant amount of 

business from areas served by the other.

Under Pennsylvania law, FNB Altoona may branch de novo into Centre 

County, and Central Counties Bank may branch de novo into Blair County. 

Neither county, however, appears to be attractive fo r any significant number of 

additional de novo facilities w ithin the foreseeable future. Blair County's population has been declining, its buying levels are below the State average, and the 

population fo r each commercial bank office in the county is less than 4,000 

people. Centre County also has below average buying levels and, although the 

population is expanding in this market, there presently is a commercial banking 

office for each 3,545 people. Furthermore, should future developments warrant additional commercial bank facilities, there are other large banks besides 

Central Counties Bank capable o f entering Blair County de novo, and similarly 

other banks than FNB Altoona capable of entering Centre County de novo.

Given the economic and structural characteristics of both counties, and their 

future prospects, the Corporation doubts that significant de novo branching 

will occur in either in the foreseeable future. Thus, even though both banks 

may be capable o f entering areas served by the other de novo, it would appear 

that w ith few de novo facilities in prospect and other potential entrants available in any case, the proposed merger would not significantly reduce opportunities fo r more intensive com petition in either county in the future.

Within the 7-county branching area open to Central Counties Bank (its 

maximum geographic market since Pennsylvania law does not perm it the operation of m ultibank holding companies), there are 137 offices operated by 45 

commercial banks. These banks hold total area IPC deposits of $1,019 m illion. 

Central Counties Bank has approximately 7.3 percent of such deposits and 

FNB Altoona 7.4 percent.* Mid-State Bank and Trust Company would continue to hold the largest share o f such deposits, 15.8 percent. The five largest 

IPC deposit shares in this area would then aggregate 44.4 percent of the total.

Under these circumstances, the Board of Directors has concluded that the 

proposed merger would not, in any section of the country, substantially lessen

* D ata have been a d ju ste d to re fle c t th e N o v e m b e r 12, 1 97 4 m erger o f T h e L o g a n to n 

N a tio n a l B ank in to T h e S ta te B ank o f A vis.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

com petition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. The resulting bank 

would have adequate financial and managerial resources. Its future prospects 

appear to be favorable.

Convenience and Needs o f the Community to be Served. Consummation of 

the proposed merger would provide customers o f FNB Altoona a broader range 

of credit services, a higher rate of interest on savings deposits, and a significantly larger lending lim it. The resulting bank should accordingly strengthen 

competition w ithin Blair County, to the benefit of local businessmen and 

residents generally.

The Board of Directors, in view of the foregoing, has concluded that approval of the application is warranted.

R esources

(in

th o u san d s 

o f d o lla rs)

B a n kin g O ffic e s

In

o p e ra tio n

T o be 

ope ra te d

Southern Bank and Trust Company

Greenville, South Carolina

to acquire the assets and assume

the deposit liabilities o f

174,172 29 58

American Bank & Trust

Orangeburg

146,463 29

Approved under emergency provisions. No report requested from the

Attorney General.

Basis fo r Corporation approval, September 20, 1974

Southern Bank and Trust Company, Greenville, South Carolina ("S outhern"), an insured State nonmember bank w ith total resources of $174,172,000, 

has applied, pursuant to Section 18(c) of the Federal Deposit Insurance Act, 

for the Corporation's consent to purchase the assets of, and assume liability to 

pay deposits made in, American Bank & Trust, Orangeburg, South Carolina 

("A m erican"), an insured State nonmember bank w ith total resources of 

$146,463,000. As an incident to the proposed transaction, the 29 operating 

and 3 approved but unopened offices of American would become branches of 

Southern.

As of September 20, 1974, American had deposits and other liabilities of 

some $132 m illion and operated 29 offices. On September 20, 1974, the 

Federal Deposit Insurance Corporation was appointed as Receiver of American.

The Board of Directors finds that the failure of American requires it to act 

immediately and thus waives publication of notice, dispenses w ith the solicitation of competitive reports from other agencies, and authorizes the transaction 

to be consummated immediately.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 131

R esources

(in

thousands 

o f d o lla rs)

B a n kin g O ffic e s

I n

o p e ra tio n

T o be 

ope ra te d

Barclays Bank of California

San Francisco, California

303,791 31 38

to acquire the assets and assume

the deposit liabilities o f

The County Bank, Santa BarbaraCarpinteria

Santa Barbara

44,624 7

Summary report by Attorney General, June 19, 1974 

The nearest offices of the parties are separated by approximately 17 miles, 

w ith a number of competitive alternatives in the intervening area. County 

Bank's proposed Woodland Hills office, approved but not yet opened, w ill be 

w ithin 5 miles of the nearest Barclays California branch. Thus, it appears that 

the proposed transaction may eliminate some com petition between the parties 

in the Los Angeles-Ventura County area. However, it does not appear that 

concentration w ill be substantially increased in any relevant banking market.

Although California law permits statewide branching, the relatively modest 

position of each of the parties in their respective markets diminishes the effect 

of this transaction on potential competition.

Therefore, we conclude that the proposed transaction would not have a 

substantial competitive impact.

Basis for Corporation approval, October 1, 1974 

Barclays Bank of California, San Francisco, California ("Barclays"), a State 

nonmember insured bank having total resources of $303,791,000 and total IPC 

deposits of $207,906,000, has applied, pursuant to Section 18(c) and other 

provisions o f the Federal Deposit Insurance Act, for the Corporation's prior 

consent to acquire the assets of, and assume the liability to pay deposits made 

in, The County Bank, Santa Barbara-Carpinteria, Santa Barbara, California 

("C ounty Bank"), w ith total resources of $44,624,000 and total IPC deposits 

of $30,462,000. The banks would complete the proposed transaction under 

the charter and title of Barclays and, incident to the transaction, the 7 existing 

offices and 2 approved but unopened offices of County Bank would become 

branches of the resulting bank, increasing the number o f its authorized offices 

to 42.

Competition. Barclays has its main office in San Francisco and eight branches in the San Francisco-Oakland SMSA. Eleven branches are located in the San 

Jose-Santa Clara area at the southern part of the San Francisco Peninsula; eight 

are in the Anaheim-Garden Grove-Santa Ana area of Orange County about 25 

miles southeast of Los Angeles and three are in the Los Angeles-Long Beach 

area. Barclays also has approval fo r tw o additional branches— one in Los 

Angeles County and one in Palm Springs, Riverside County. Only in the San 

Jose-Santa Clara SMSA does Barclays have more than a nominal share of the 

commercial bank deposits held at offices in these local banking markets.

County Bank's main office is in Santa Barbara w ith branches in Goleta, 

Santa Barbara, and Carpinteria, along 22 miles of the Pacific Coast in Santa 

Barbara County. Other branches include Ventura on the Pacific Coast, about

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

28 miles southeast of the main office; Malibu, located on the Pacific Coast 

approximately 70 miles southeast of the main office; and Thousand Oaks, 

located east-southeast about 55 miles from the main office in the Conejo 

Valley. County Bank also has approval to establish two additional branches— 

one in Oxnard, Ventura County, and one in Woodland Hills, Los Angeles 

County. In each of its local banking markets, County Bank's share of commercial bank deposits is markedly lower than the shares held by two or more of 

the five largest commercial banks in California.

Barclays and County Bank have no common borrowers, and except in the 

Los Angeles-Long Beach SMSA, there is negligible overlapping in the geographic areas from which they draw their loans and deposits, their nearest 

offices being about 15 miles apart. However, the approved but unopened 

Woodland Hills Branch of County Bank w ill be located 4 miles from Barclays' 

Tarzana Office. Thirteen offices representing nine other banks, including the 

five largest commercial banks in California, are w ithin 1 mile of the Tarzana 

Office. This service area is on the western edge of the Los Angeles-Long Beach 

SMSA, in which Barclays controls only 0.07 percent of total commercial bank 

deposits and County Bank, only 0.01 percent. In view of these nominal market 

shares, any elimination of either existing or potential com petition between the 

tw o banks in this SMSA is considered inconsequential competitively.

Unlimited statewide de novo branching is permitted in California, and it is 

highly probable that in the absence of this proposal, Barclays would in time 

branch de novo into all of the local banking markets served by County Bank. 

County Bank, on the other hand, due to its relatively small size and limited 

financial resources, is unlikely to become a significant com petitor of Barclays 

anywhere except possibly in the Los Angeles-Long Beach SMSA. Presently 

Barclays Bank controls only 0.3 percent of total statewide commercial bank 

deposits and County Bank, 0.1 percent. In view of the minimal shares of State 

and local market deposits held by the tw o banks and the intense statewide 

competition of the largest California banks, any elim ination of potential competition caused by consummation of this proposed transaction has no significance for the future. The 10 largest banks hold 88.1 percent of total deposits 

in this highly concentrated State banking system. Approxim ately 0.4 percent 

of total deposits would be held by the resulting bank.

Based on the foregoing, the Board of Directors has concluded that the 

proposed transaction would not, in any section of the country, substantially 

lessen com petition, tend to create a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. Both banks have 

satisfactory managerial resources to conduct their present volume of business. 

Financial and managerial resources of the resulting bank would be acceptable 

and its future prospects appear favorable.

Convenience and Needs o f the Community to be Served. On consummation 

of the proposed transaction, customers of County Bank should benefit from 

the significantly higher lending limits afforded the resulting bank. They would 

also benefit through the addition o f international banking services, a lowering 

of certain service charges, and the adjustment of loan interest rates to a more 

competitive level.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 133

R esources

(in

th ousands 

o f d o lla rs)

B a n k in g O ffic e s

I n

o p e ra tio n

T o be 

o p e ra te d

Merchants and Farmers Bank 44,639 11 12

Kosciusko, Mississippi

to merge with

The Bank of Lena 1,213 1

Lena

Summary report by Attorney General, August 20, 1974

We have reviewed this proposed transaction and conclude that it would not 

have a substantial competitive impact.

Basis for Corporation approval, October 1, 1974

Merchants and Farmers Bank, Kosciusko, Mississippi ("M erchants"), a State 

nonmember insured bank w ith total resources of $44,639,000 and total IPC 

deposits of $32,700,000, has applied, pursuant to Section 18(c) and other 

provisions of the Federal Deposit Insurance Act, fo r the Corporation's prior 

consent to merge w ith The Bank of Lena, Lena, Mississippi, w ith total resources of $1,213,000 and total IPC deposits of $1,029,000. These banks 

would merge under the charter and title of Merchants and, as an incident to the 

merger, the sole office of The Bank of Lena would be established as a branch 

of the resulting bank, which would then have 12 offices in operation, plus one 

approved but unopened office.

Competition. Merchants operates 11 offices in 5 central Mississippi counties: 6, including its main office, in Attala County (1970 population 19,570), 2 

in Holmes County (1970 population 23,120), and 1 each in Choctaw County 

(1970 population 8,440), Leake County (1970 population 17,085), and 

Oktibbeha County (1970 population 28,752). Merchants has the necessary 

supervisory approvals to establish one additional office in Kosciusko.

The Bank of Lena operates its sole office in Lena (1970 population 233), a 

very small incorporated com m unity in southern Leake County, some 35 roadmiles south of Kosciusko. Leake County's population loss of 8.4 percent 

during the 1960s reflects a declining economy.

The proposed merger would have its most direct and immediate effect in 

southern Leake County w ithin about 17 miles of Lena— an area which includes 

the county seat of Carthage, located some 14 road-miles north of Lena, and 

Walnut Grove, another small incorporated com m unity about 17 road-miles east 

of Lena. There are no significant roads which directly connect Lena w ith 

communities to the west, and to the south, Lena is separated from communities in adjacent Scott County by the Bienville National Forest. Southern 

Leake County is agricultural, w ith row crops and the production of cattle and 

hogs having replaced cotton as the principal source o f income in recent years. 

The economy of the relevant market has been declining and the 1973 median 

household effective buying level of Leake County ($5,156) is significantly

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

lower than that of the State ($6,928)— the latter being well below the comparable national level.

This local market in southern Leake County, which had a population of 

somewhat more than 9,000 in 1970, is served by a total of five offices of four 

commercial banks. O f the $29.4 m illion of IPC deposits held by these offices, 

The Bank of Lena has the smallest share, 3.5 percent. Two banks in Carthage, 

the county seat and trading center of Leake County, hold 79.6 percent of the 

commercial bank IPC deposits in this relevant geographic area, while the bank 

in Walnut Grove holds the remaining 16.8 percent. Merchants is not represented in this market at all; its closest office to Lens is located in Thomastown, in northern Leake County, about 22 road-miles north of Lena and 11 

miles northwest of Carthage. The highway and road configuration of Leake 

County makes even more remote any direct com petition between Merchants 

and The Bank of Lena than actual distance indicates. Accordingly, the proposed merger may be viewed as eliminating no significant amount of. com petition between the tw o banks.

There also appears to be no significant potential fo r increased com petition 

between the tw o banks in the future through de novo branching. The Bank of 

Lena has experienced only minimal deposit growth during recent years and has 

neither the financial nor managerial resources to pursue de novo expansion. 

Merchants, for its part, would find southern Leake County unattractive fo r de

novo entry. This is an area of sparse and declining population and significantly 

below average buying levels. Four commercial banks presently have offices in 

the area and none of its three incorporated communities is legally open fo r de

novo entry by other banks.

In its maximum branching area under Mississippi law, i.e., the area w ithin 

100 miles of Kosciusko, the resulting bank would control only 1.2 percent of 

total commercial bank deposits, ranking 17th in this regard w ithin the area. 

Statewide, the resulting bank would hold less than 1.0 percent of all commercial bank deposits in Mississippi.

Based on the foregoing inform ation, the Board of Directors is o f the opinion 

that the proposed merger would not, in any section of the country, substantially lessen com petition, tend to create a monopoly, or in any other manner 

be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Both Merchants and 

The Bank o f Lena have satisfactory financial resources. There is a lack of 

management depth at The Bank of Lena which this proposed merger would 

resolve. Future prospects of the resulting bank appear favorable.

Convenience and Needs o f the Community to be Served. The merger would 

make available in the Lena market the full services of a much larger, more 

sophisticated and aggressive bank. Consumer installment credit, credit cards, 

time deposit open accounts, safe deposit facilities, and trust services would 

become availabe for the first time at The Bank of Lena's location. These 

conveniences, together w ith a lending lim it increased from $12,000 to 

$600,000, should stimulate com petition in southern Leake County to the 

benefit of farmers, businessmen, and the general public.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 135

The Board of Directors, in view of the foregoing, has concluded that approval of the application is warranted.

Resources

(in

th o u san d s 

o f d o lla rs)

B a n k in g O ffic e s

In

o p e ra tio n

T o be 

o p e ra te d

Albany Savings Bank

Albany, New York

563,792 7 8

to merge with

First Savings and Loan Association of Troy

Troy

14,455 1

Summary report by A ttorney General, July 13, 1974 

The cities of Albany and Troy are only about 8 miles apart, located on 

opposite sides of the Hudson River. While Albany Savings Bank does not now 

operate offices in Troy or in Rensselaer County, in which Troy is located, 

Albany Savings Bank derives a substantial proportion of its business from that 

area. It appears, therefore, that the merger would eliminate some existing 

competition between the tw o institutions.

Albany Savings Bank is the largest th rift institution in the Albany-Troy area, 

holding about 33 percent o f total deposits held by such institutions. First S&L, 

on the other hand, holds only about 0.9 percent of total th rift institution 

deposits in the Albany-Troy area. Thus, because of the small size of First S&L, 

the effect of the merger on com petition would not be significantly adverse.

Basis for Corporation approval, October 1, 1974 

Albany Savings Bank, Albany, New York ("A lbany Savings"), an insured 

mutual savings bank w ith total resources o f $563,792,000 and total deposits of 

$519,408,000, has applied, pursuant to Section 18(c) and other provisions of 

the Federal Deposit Insurance Act, for the Corporation's prior consent to 

merge w ith First Savings and Loan Association of Troy, Troy, New York 

("S & L "), a federally insured, State-chartered savings and loan association w ith 

total resources of $14,455,000 and total deposits of $13,579,000. The 2 institutions would merge under the charter and title of Albany Savings and, incident to the merger, the 2 approved offices of S&L would be established as 

branches of the resulting bank, increasing the number of its approved offices to 

10.

Competition. Albany Savings operates a total of seven offices: its main 

office and one branch in Albany, tw o branches in Glens Falls, and one branch 

each in Colonie, Schenectady, and Johnstown. The offices in Glens Falls and 

Johnstown were acquired during 1970 and 1971 by mergers w ith two Statechartered savings and loan associations. Albany Savings also holds the necessary 

supervisory approvals to establish an office in Plattsburgh. Under present New 

York law, Albany Savings may acquire by merger any number of branches 

throughout the Fourth Banking District, a 15-county region in northeastern 

New York State, but its establishment of de novo branches is limited to one

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

such branch each year. Beginning January 1, 1976, mutual savings banks may 

branch throughout the State subject to the continuing lim itation of one de

novo branch each year.

S&L has its sole office in Troy (1970 population 62,918— down 6.8 percent 

from 1960). It holds the necessary supervisory approvals, however, to establish 

a branch in East Greenbush (population 10,679), located some 11 miles south 

of Troy. The area principally served by S&L comprises the city of Troy and its 

close environs. In 1973, the median household buying level in the city ($8,055) 

was 21.5 percent below that of the State as a whole. Approxim ately 90.9 

percent of the th rift institution deposits in Troy on June 30, 1973, were 

controlled by tw o Troy-based savings banks. An Albany-based savings bank, 

which recently acquired a toe-hold in this market by merger w ith another 

savings and loan association, shares the remainder of such deposits w ith S&L. 

Albany Savings has no office in the city of Troy.

The local banking market served by Albany Savings comprises the counties 

of Albany, Rensselaer, Saratoga, Schenectady, and Warren, a mixed residential 

and industrial region in northeastern New York State. S&L serves a small 

portion o f this market, but Albany Savings, whose nearest office to Troy is 8 

miles away, across the Hudson River, also draws deposit and loan business from 

the same portion of the market. Accordingly, some direct com petition between 

the tw o institutions would be eliminated by their merger. This consequence of 

the proposed merger is of little significance, however, in view of the fact that 

S&L holds so minor a share of all th rift institution deposits in the whole 

market, and that numerous th rift institution alternatives are available. This 

wide choice of alternatives, moreover, is likely to increase further after January 

1, 1976, when New Y ork law w ill permit statewide branching by th rift institutions.

It appears, moreover, that there is no significant potential for increased 

competition between the tw o institutions in the future through de novo

branching. Albany Savings is likely to find other locations in the Fourth Banking District and, after January 1, 1976, in the State that are more attractive 

than Troy fo r the limited de novo expansion permitted by New York law. For 

its part, S&L has operated as a unit institution ever since its 1889 organization 

and would be unlikely in the foreseeable future to undertake additional de

novo expansion because of its limited financial and managerial resources.

Albany Savings is the second largest th rift institution in the Fourth Banking 

District, holding approximately 18.0 percent of the deposits held on June 30,

1973, by the 21 th rift institutions operating therein. The resulting bank, w ith 

approximately 18.4 percent of such deposits, would continue to be the district's second largest th rift institution. Statewide branching and merging subsequent to January 1, 1976, is likely to bring additional th rift institution 

com petition to the market presently served by Albany Savings and should tend 

to deconcentrate present holdings of th rift institution deposits.

The Board of Directors is of the opinion that the proposed merger would 

not, in any section of the country, substantially lessen com petition, tend to 

create a monopoly, or in any other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Financial resources 

of both institutions are satisfactory. Under the satisfactory management of the 

resulting bank, the future prospects of S&L are more favorable than if S&L 

were to continue to operate as an independent institution. The resulting bank 

Digitized for FRASER 

has favorable future prospects.

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 137

Convenience and Needs o f the Community to be Served. The resulting bank 

would offer a broader spectrum of credit services, including FHA and VA 

mortgages, and a greatly increased lending capability at the S&L location and 

should provide more effective com petition in the field o f real estate financing 

to the other savings banks and commercial banks in the Troy market. Customers of S&L should also benefit from the availability of savings bank life 

insurance.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

R esources

(in

B a n k in g O ffic e s

th o u san d s 

o f d o lla rs)

I n

o p e ra tio n

T o be 

o pe ra te d

Bradford Trust Company

New Y ork, New York

21,633 1 1

to acquire the trust business o f

Franklin National Bank

New Y ork

3,590,554 104

Approved under emergency provisions. No report requested from the 

A ttorney General.

Basis for Corporation approval, October 8, 1974

Bradford Trust Company, New York (Manhattan), New York, an insured 

State nonmember trust company, has applied, pursuant to Section 18(c) of the 

Federal Deposit Insurance Act, for the Corporation's prior approval to acquire 

the trust business of Franklin National Bank, New York (Brooklyn), New Y ork 

("F ra n klin "). Under this proposal, Bradford Trust Company would become 

successor trustee on all personal and corporate accounts now administered by 

Franklin.

As of October 8, 1974, Franklin National Bank had deposits and other 

liabilities of more than $3.4 billion and operated 104 offices. On October 8, 

1974, the Federal Deposit Insurance Corporation was appointed Receiver of 

Franklin.

The Board of Directors finds that the failure of Franklin requires it to act 

immediately on the proposed purchase and assumption transaction. The Board 

thus waives publication of notice, dispenses w ith the solicitation o f competitive 

reports from other agencies, and authorizes the transaction to be consummated 

immediately.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
1 38 FEDERAL DEPOSIT INSURANCE CORPORATION

Resources

(in

th ousands 

o f d o lla rs )

B a n kin g O ffic e s

In

o p e ra tio n

T o be 

o p e ra te d

European-American Bank & Trust Company

New York, New Y ork

504,710 3 107

to acquire the assets and assume

the deposit liabilities o f

Franklin National Bank

New Y ork

3,590,554 104

Approved under emergency provisions. No report requested from the

A ttorney General.

Basis fo r Corporation approval, October 8, 1974 

Pursuant to Section 18(c) of the Federal Deposit Insurance Act, EuropeanAmerican Bank & Trust Company, New York (Manhattan), New York 

("European-American"), an insured State nonmember bank w ith total resources o f $466,824,000 as of December 31, 1973, has applied fo r the Corporation's consent to purchase the assets of, and assume liability to pay deposits made in, Franklin National Bank, New York (Brooklyn), New York 

("F ra n klin "). As an incident to the proposed transaction, the 104 offices of 

Franklin would become branches of European-American.

As of October 8, 1974, Franklin had total deposits and other liabilities of 

more than $3.4 billion and operated 104 offices. On October 8, 1974, the 

Federal Deposit Insurance Corporation was appointed as Receiver of Franklin.

The Board of Directors finds that the failure of Franklin requires it to act 

immediately. The Board thus waives publication of notice, dispenses w ith the 

solicitation of competitive reports from other agencies, and authorizes the 

transaction to be consummated immediately.

Resources

(in

th o u san d s 

o f d o lla rs)

B a n kin g O ffic e s

In

o p e ra tio n

T o be 

o pe ra te d

Marine Midland Bank-Rochester

Rochester, New York

719,324 34 35

to merge with

Groveland State Bank

Groveland

2,160 1

Approved under emergency provisions. No report requested from the A ttorney 

General.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 139

Basis fo r Corporation approval, October 11, 1974 

Marine Midland Bank-Rochester, Rochester, New York, an insured State 

nonmember bank w ith total resources of $719,324,000, has applied, pursuant 

to Section 18(c) of the Federal Deposit Insurance Act, for the Corporation's 

prior consent to merge w ith Groveland State Bank, Groveland, New Y ork, an 

insured State nonmember bank w ith total resources of $2,160,000. As an 

incident to the proposed merger, the sole office of Groveland State Bank 

would become a branch of Marine Midland Bank-Rochester.

The Board of Directors has determined that the Corporation must act 

immediately in order to prevent the probable failure of Groveland State Bank.

Based on this finding the proposed merger is approved. Under Section 

18(c)(4) of the Federal Deposit Insurance A ct, the transaction may be consummated immediately.

R esources

(in

th o u san d s 

o f d o lla rs)

B a n kin g O ffic e s

I n

o p e ra tio n

T o be 

ope ra te d

Iowa State Savings Bank 20,505 1 2

Creston, Iowa

to acquire the assets and assume

the deposit liabilities o f

Cromwell State Savings Bank 3,579 1

Cromwell

Approved under emergency provisions. No report requested from the 

Attorney General.

Basis fo r Corporation approval, October 12, 1974

Iowa State Savings Bank, Creston, Iowa, an insured State nonmember bank 

w ith total resources of $20,505,000, has applied, pursuant to Section 18(c) of 

the Federal Deposit Insurance Act, for the Corporation's consent to purchase 

the assets of, and assume liability to pay deposits made in, Cromwell State 

Savings Bank, Cromwell, Iowa, an insured State nonmember bank w ith total 

resources of $3,579,000. As an incident to the proposed transaction, the one 

office of Cromwell State Savings Bank would become a branch of Iowa State 

Savings Bank.

As of October 9, 1974, Cromwell State Savings Bank had deposits and other 

liabilities of some $3.5 m illion and operated one office. On October 10, 1974, 

the Federal Deposit Insurance Corporation was appointed as Receiver of Cromwell State Savings Bank.

The Board of Directors finds that the failure of Cromwell State Savings 

Bank requires it to act immediately and thus waives publication of notice, 

dispenses w ith the solicitation of competitive reports from other agencies, and 

authorizes the transaction to be consummated immediately.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

R esources

(in

th o u san d s 

o f d o lla rs )

B a n kin g O ffic e s

1 n

o p e ra tio n

T o be 

ope ra te d

Community State Bank of Clear Lake

Clear Lake, Iowa

8,834 1 2

to merge with

Ventura State Bank

Ventura

3,912 1

Summary report by A ttorney General, July 5, 1974 

Clear Lake is located in west central Cerro Gordo County, about 15 miles 

west of Mason City. Ventura is located 4 miles west of Clear Lake in western 

Cerro Gordo County, near the Hancock County line. Thus, the offices of the 

parties to this proposed merger are separated by a distance of about 4 miles, 

w ith no banks in the intervening area. Each party to this proposed merger 

derives substantial deposits and loans from the service area of the other. A ccordingly, the proposed transaction would apparently eliminate com petition 

between the parties and increase concentration in western Cerro Gordo County.

According to the application, there is some indirect common stock ownership of the tw o banks, as well as some indirect officer-director interlocks. The 

application does not contain sufficient inform ation to fu lly evaluate the existence, origin, or relevance of these facts, and we express no opinion on their 

effect on the foregoing competitive analysis.

Basis fo r Corporation approval, November 4, 1974 

Com m unity State Bank of Clear Lake, Clear Lake, Iowa ("C om m unity 

Bank"), a State nonmember insured bank w ith total resources of $8,834,000 

and total IPC deposits of $7,252,000, has applied, pursuant to Section 18(c) 

and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to merge w ith Ventura State Bank, Ventura, Iowa 

("Ventura Bank"), which has total resources of $3,912,000 and total IPC 

deposits of $3,204,000, under the charter and title of Com m unity Bank. The 

sole office of Ventura Bank would become a branch of the resulting bank, 

which thereupon would operate two offices.

Competition. Both Com m unity Bank and Ventura Bank are located in Cerro 

Gordo County, in north-central Iowa. The population o f Cerro Gordo County 

declined during the 1960s from 49,894 to 49,223. Clear Lake city (population 

6,430) adjoins the tow n o f Ventura (population 543). Both are resort communities, dependent in large part on business attracted by a 3,640-acre lake 

located nearby, which is surrounded by homes and cottages, many occupied 

seasonally. The area's trading center is Mason City (population 30,379), the 

county seat, located 10 miles east of Clear Lake city and providing em ployment for many residents of both Clear Lake city and Ventura. Cerro Gordo 

County's median household effective buying level in 1973 ($9,385) approximates that o f the State ($9,499).

Both Com m unity Bank and Ventura Bank are controlled by Earl W. Nelson 

and several associates who also control, directly or indirectly, five other banks 

in the State of Iowa. None of these banks, other than Ventura Bank, has an

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 141

office w ithin 95 miles of Clear Lake city. However, the First State Bank of 

Thornton, Iowa, located about 18 miles southeast of Ventura and 14 miles 

south of Clear Lake city, is controlled by Earl W. Nelson and two associates 

not involved in the control of the seven Iowa banks already mentioned.

The proposed merger would have its most immediate and direct effects in an 

area w ithin an approximate 15-mile radius o f Ventura. A total o f 12 commercial banks maintain 21 offices in this area, holding IPC deposits of $197.6 

m illion and serving an estimated 50,200 people. Community Bank holds 3.7 

percent, the 10th largest share of these deposits; Ventura Bank, its office 

located 4 miles west of Com m unity Bank, holds 1.6 percent, the smallest share. 

The First State Bank of Thornton holds 3.9 percent of these commercial bank 

IPC deposits. The local market is dominated, however, by tw o Mason Cityheadquartered banks, The First National Bank of Mason C ity and United Home 

Bank & Trust Co., w ith 28.1 percent and 21.8 percent of such deposits, respectively. Although some existing com petition between Community Bank and 

Ventura Bank was eliminated when they came under common control and this 

result would be made permanent by the proposed merger, the Corporation 

does not view that existing com petition as substantial in view o f the size of the 

market and its present structure. The resulting bank, in fact, would have only

5.3 percent of the market's total commercial bank IPC deposits. Including the 

deposits held by The First State Bank of Thornton, Iowa, only 9.2 percent of 

such deposits are involved.

Under Iowa law, both Com m unity Bank and Ventura Bank may establish de

novo offices in Cerro Gordo County and the eight surrounding counties, except 

in communities which are already banked. The potential for increased competition between the tw o banks through de novo branching is considered remote, however, even assuming their disaffiliation, because of their limited resources, the lack of growth in the area, the already low population fo r each 

commercial bank office, and Iowa's restrictive branching law.

A total of 79 offices of 54 commercial banks are located in the 9-county 

legal branching region of the resultant bank; these offices hold IPC deposits of 

$570.3 m illion. The resultant bank, holding 1.8 percent of such deposits, 

would become the 22nd largest in the region. Statewide, the resultant bank 

would hold less than 0.125 percent of the IPC deposits held by all commercial 

banks in Iowa.

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 

com petition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Both Com m unity 

Bank and Ventura Bank have satisfactory financial and managerial resources 

for the business they do, as would the resultant bank. Future prospects of the 

resultant bank are considered to be favorable.

Convenience and Needs o f the Community to be Served. The resultant bank 

would operate w ith an increased lending lim it (of $156,000), and its aggregate 

size may lead in time to the establishment o f a trust department which should 

be a convenience for a portion o f the area's population. However, the merger 

would not initially provide residents o f the Clear Lake-Ventura area w ith services not presently available at the offices o f the two banks. The competitive 

position of the resultant bank, vis-a-vis larger banks already in the market, may

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

be enhanced. However, overall considerations of convenience and needs weigh 

only slightly in favor of the proposed transaction.

In view of the lack of significant competitive impact, however, the Board of 

Directors has concluded that approval of the application is warranted.

Resources

(in

th ousands 

o f d olla rs)

B a n kin g O ffic e s

I n

o p e ra tio n

T o be 

ope ra te d

Westchester County Savings Bank

Tarrytown, New York

173,283 5 6

to merge with

Tuckahoe Savings and Loan Association

Tuckahoe

18,808 1

Summary report by A ttorney General, March 28, 1974 

Applicant presently operates five offices in Westchester County and has 

been given approval for a sixth. Applicant's main office in Tarrytown and the 

site of the proposed branch in Greenburgh are w ithin approximately 13 miles 

of Tuckahoe. Thus, it appears that the proposed transaction may eliminate 

some existing com petition.

However, it does not appear that the proposed transaction would substantially increase concentration in any relevant geographic market. Applicant 

holds approximately 6 percent of total deposits held by Westchester County 

th rift institutions, while Tuckahoe accounts for less than 1 percent of such 

deposits.

Therefore, we conclude that the proposed merger would not have a substantial competitive impact.

Basis fo r Corporation approval, November 4, 1974 

Westchester County Savings Bank, Tarrytown, New Y ork ("W CSB"), an 

insured mutual savings bank w ith total resources on June 30, 1974, of 

$173,283,000 and total deposits of $159,568,000 has applied, pursuant to 

Section 18(c) and other provisions of the Federal Deposit Insurance Act, for 

the Corporation's prior consent to merge w ith Tuckahoe Savings and Loan 

Association, Tuckahoe, New Y ork ("S & L "), a federally insured, Statechartered savings and loan association w ith total resources on February 8,

1974, of $18,808,000 and total deposits of $17,023,000. The two institutions 

would merge under the charter and title of WCSB and, incident to the merger, 

the sole office of S&L would become a branch of the resulting bank, increasing 

to six the number of its offices.

Competition. WCSB's main office is located in Tarrytown w ith branch o ffices in Ossining, B riarcliff Manor, Arm onk, and Somers Township— all of which 

are in Westchester County, as is its approved but unopened branch in the town 

of Greenburgh. Through a 1971 merger w ith The Bank fo r Savings of Westchester (Ossining), WCSB acquired the Ossining and Briarcliff Manor offices.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 143

The other branches were established de novo. New Y ork State law allows WCSB 

to establish only one de novo branch per year in the Third Banking District, 

but any number of branches may be established in the Third Banking District 

by merger. Statewide branching w ill become effective on January 1, 1976; 

however, the one branch per year lim itation will remain.

Westchester County (1970 population 891,409) covers an area of 457 square 

miles just north of New Y ork C ity. This county has some industrial development and the executive offices of a number o f large corporations; however, it is 

prim arily a residential area, w ith a sizable portion of the population commuting to New York City fo r employment. A ll of WCSB's offices are located in 

Westchester County where it is the fifth largest of the 11 mutual savings banks 

headquartered there as of June 30, 1974. It controlled 7.0 percent of all 

deposits held by the 52 mutual savings bank offices in the county (11 of which 

represent 10 mutual savings banks headquartered in New Y ork C ity). It ranks 

sixth of the 29 mutual savings banks headquartered in the Third Banking 

District, holding 4.8 percent of the deposits held at such institutions. The 

proposed transaction would not change either ranking nor would it affect the 

de novo branching capabilities of the resultant bank.

S&L's only office is located in the village of Tuckahoe in southern Westchester County. This village and the villages of Bronxville and Eastchester make 

up the tow n of Eastchester (1970 population 36,660). An area of approximately 5 square miles surrounding Tuckahoe constitutes S&L's primary trade 

area and includes the village of Tuckahoe, sections of the villages o f Eastchester 

and Bronxville, and the Crestwood section o f the city of Yonkers. S&L holds 

less than 1.0 percent of all deposits held by mutual savings banks and savings 

and loan associations in Westchester County offices.

The main office of WCSB is located 13 miles from S&L's sole office, and 

WCSB's unopened branch in the town o f Greenburgh w ill be 10 miles away. 

The trade areas of the tw o institutions, however, are considered separate and 

distinct, and neither draws any substantial business from areas served by the 

other. As to potential competition in the future, S&L has not established a 

branch in its 84-year existence and the possibility of its establishing one now is 

considered remote, given its limited financial and managerial resources. WCSB 

has the capability of establishing a branch in the Tuckahoe area at some future 

time, but the elimination of this potential fo r increased com petition in the 

future is considered insignificant in view of the size of S&L, the small share of 

the market it holds, and the likelihood of significant additional com petition in 

the future from savings banks headquartered in New Y ork C ity.

Under the circumstances described, the Board of Directors has concluded 

that the proposed transaction would not, in any section o f the country, substantially lessen com petition, tend to create a monopoly, or in any other 

manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Both institutions 

have satisfactory financial resources. A management succession problem at 

S&L would be resolved by the proposed merger. The resultant bank's financial 

and managerial resources would be satisfactory and its future prospects appear 

favorable.

Convenience and Needs o f the Community to be Served. Increased lending 

limits, more liberal loan policies, new types of loans, including FHA home 

mortgage and education loans, and savings bank life insurance are among the

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

services which would be offered to customers of S&L by the resultant bank, 

thus allowing this office to compete more effectively w ith the much larger 

th rift institutions and commercial banks represented in the area it serves.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

R esources

(in

th o u san d s 

o f d o lla rs)

B a n kin g O ffic e s

I n

o p e ra tio n

T o be 

ope ra te d

California Overseas Bank — — 3

Beverly Hills, California

to purchase a portion o f the assets and assume

a portion o f the liabilities o f

Ahmanson Bank and Trust Company 21,780 3

Beverly Hills

Summary report by A ttorney General, October 7, 1974 

California Overseas Bank ("C alifornia Bank") is a nonoperating institution 

organized fo r the purpose of effectuating the sale of the commercial banking 

business (except fo r the trust business) of Ahmanson Bank to a separate new 

banking organization. A fter consummation of the proposed plan, the capital 

stock of California Bank w ill largely be owned by a group of investors (including foreign investors) not connected w ith either Ahmanson Bank or its 

corporate parent.

It does not appear that the proposed transaction w ill have any adverse 

competitive effect.

Basis for Corporation approval, November 20, 1974 

Pursuant to Sections 5 and 18(c) and other provisions of the Federal Deposit Insurance Act, applications have been filed on behalf of California Overseas Bank, Beverly Hills, California, a proposed new bank in organization, for 

Federal deposit insurance and fo r consent to its purchase of a portion of the 

assets and assumption of a portion of the liabilities of Ahmanson Bank and 

Trust Company, Beverly Hills, California ("Ahmanson Bank"), a State nonmember insured bank (total resources $21,780,000; IPC deposits $16,597,000 

as of June 30, 1974). The main office and tw o existing branches of Ahmanson 

Bank would be established as the main office and branches of California Overseas Bank.

Organization of California Overseas Bank and the proposed purchase and 

assumption transaction are being utilized by H.F. Ahmanson & Company, Los 

Angeles, California, a holding company controlling 100 percent of the voting 

shares of Ahmanson Bank, to divest the commercial banking business presently 

conducted by Ahmanson Bank. California Overseas Bank would not be in 

operation as a commercial bank prior to the proposed transaction. Subsequent 

to consummation of that transaction, California Overseas Bank would be sold 

to a group of investors, none of whom presently has an interest in any United

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 145

States bank. The sale consummated, California Overseas Bank would be operated as a commercial bank under a new management at the existing locations 

of Ahmanson Bank. The proposal, of itself, would not affect the competitive 

structure of commercial banking in the trade area of Ahmanson Bank or result 

in a change of the commercial banking services which Ahmanson Bank has 

heretofore made available to the public. A ll factors considered pertinent to the 

subject applications are favorably resolved.

On the basis of the foregoing inform ation, the Board of Directors has concluded that approval of the applications is warranted.

R esources

(in

th o u san d s 

o f d o lla rs)

B a n kin g O ffic e s

I n

o p e ra tio n

T o be 

ope ra te d

The Citizens State Bank

Williamsport, Indiana

16,327 1 2

to merge with

Farmers-Central Bank

West Lebanon

6,529 1

Summary report by A ttorney General, August 29, 1974 

The banks are located about 6 miles apart, and are the only tw o banks in 

Warren County. Their proxim ity and the absence of intervening banking alternatives indicate that the proposed merger would generally be regarded as likely 

to eliminate com petition between them, although the existence of other competitive alternatives in adjoining Fountain County and the small size of West 

Lebanon Bank would ameliorate this competitive effect. We note that the 

application indicates that longstanding common ownership and management 

has already eliminated any meaningful com petition between the banks.

Basis for Corporation approval, November 20, 1974 

The Citizens State Bank, W illiamsport, Indiana ("C itizens"), an insured 

State nonmember bank w ith total assets of $16,327,000 and IPC deposits of 

$12,592,000, 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 w ith Farmers-Central Bank, West Lebanon, 

Indiana ("Farm ers"), which has total assets of $6,529,000 and IPC deposits of 

$5,291,000. As an incident to the merger, the sole office of Farmers would 

become a branch of the resulting bank, increasing the total number o f its 

offices to two.

Competition. Citizens and Farmers each have sole offices in Warren County, 

about 6 miles apart. Warren County (population 8,705) is in northwestern 

Indiana on the Illinois border, and the area is prim arily agricultural.

For over 20 years, nearly 80 percent of the stock of Citizens and over 93 

percent o f the stock of Farmers have been owned by the same individual and 

members of his fam ily. He serves as president of both banks and, w ith other 

fam ily members, controls both boards of directors. This common control

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

antedates the original Bank Merger Act, thereby distinguishing this application 

from those involving subsequently acquired control. The proposed merger 

would not eliminate any existing com petition, and it is highly unlikely that 

control of either bank would change in the foreseeable future. Moreover, the 

proposed merger would have no effect on the structure of commercial banking 

in and around Warren County, where the two banks have been operated in 

much the same way for 20 years, and where both compete w ith two banks of 

approximately the same size as Citizens and Farmers combined in Fountain 

County.

Under the circumstances presented, the Board of Directors is o f the opinion 

that the proposed merger would not, in any section of the country, substantially lessen com petition, tend to create a monopoly, or in any other manner 

be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Both institutions 

have adequate financial resources for the business they presently do. Managerial resources and future prospects are the same for both institutions and 

the resulting bank, and are satisfactory.

Convenience and Needs o f the Community to be Served. The proposed 

merger would have virtually no effect on the convenience and needs of the 

Warren County com m unity. It could, however, result in simplified operating 

procedures which might have the effect of improving the quality of banking 

services offered to customers of Citizens and Farmers.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources 

( i n

B a n kin g O ffic e s

th o u san d s 

o f d o lla rs)

I n

o p e ra tio n

T o be 

ope ra te d

The Colebrook National Bank

Colebrook, New Hampshire

(change title to The First Colebrook Bank)

3,110 1 1

to merge with

Colebrook Guaranty Savings Bank

Colebrook

16,720 1

Summary report by A ttorney General, October 7, 1974 

Colebrook (1970 population 2,100) is located in extreme northwestern New 

Hampshire, very near the Verm ont border and about 8 miles south of the 

Canadian border. Guaranty Bank and National Bank are two of three banks 

operating in Colebrook. The third bank in the com m unity is a full-service 

commercial bank, holding total deposits of about $10 m illion.

Guaranty Bank and National Bank are not now in substantial com petition 

w ith each other. Guaranty Bank accepts only time and savings deposits and 

makes prim arily real estate loans, while National Bank accepts only demand 

deposits and makes no real estate loans. It could be expected, however, that 

the tw o banks would ultim ately compete w ith each other, in view of the 

recently enacted New Hampshire law which forbids continuation of this type

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 147

of "tandem " arrangement after July 1, 1975. In view of the small size of 

National Bank, however, and of the Colebrook com m unity, the effect of the 

merger on potential com petition would not be significantly adverse.

Basis fo r Corporation approval, November 20, 1974

The Colebrook National Bank, Colebrook, New Hampshire ("Colebrook 

National") (total resources $3,110,000; total IPC deposits $2,069,000), has 

applied, pursuant to Section 18(c) and other provisions of the Federal Deposit 

Insurance Act, fo r the Corporation's prior consent to merge w ith the Colebrook Guaranty Savings Bank, Colebrook, New Hampshire ("Colebrook 

Savings") (total resources $16,720,000; total IPC deposits $15,028,000. Colebrook National would convert to State nonmember insured status under the 

title "The First Colebrook Bank" prior to consummation of the merger.

Competition. Colebrook National ranks 66th among the State's 76 commercial banks, w ith 0.2 percent of all commercial bank deposits in the State as 

of December 31, 1973. Its only office, which it shares w ith Colebrook Savings, 

is located in Colebrook (1970 population 2,094) in the northernmost portion 

of New Hampshire in Coos County (1970 population 34,291). Colebrook 

Savings is a stock institution, one of New Hampshire's six guaranty savings 

banks. It ranks 28th among all guaranty savings banks and mutual savings 

banks in New Hampshire, w ith 0.9 percent of their total deposits.

Colebrook National and Colebrook Savings were organized fo r business in 

the same year, share common management, as well as banking quarters, and do 

not compete fo r the same services. This application fo r consent to merge is the 

result of a change in New Hampshire law prohibiting such interlocking management arrangements after July 1, 1975.

The market served by the tw o banks is considered to be Colebrook and the 

adjoining towns of Columbus, Dixville, and Stewartstown, located in the northwest portion of Coos County, New Hampshire, an area w ith approximately 

3,600 people. The described market and Coos County had population declines 

of 5.2 percent and 7.7 percent, respectively, between 1960 and 1970, compared to the statewide gain of 21.5 percent. The median household buying 

level fo r Coos County was $8,000 in 1973, the second lowest in the State, and 

contrasts w ith a statewide median o f $9,600. The principal economic activities 

in the area are dairy farming and lumbering, w ith a few small industrial plants 

manufacturing furniture, wood products, and plastic goods. Tourism is im ­

portant, but the remoteness of the area restricts any major growth from resort 

or vacation activities. Economic activity is stagnant and there appears to be 

little prospect of improvement.

Colebrook National, Colebrook Savings, and The Farmers and Traders 

National and Savings Bank, also of Colebrook, are the only banks presently 

serving this limited and sparsely populated market. Together, Colebrook National and Colebrook Savings control 63.7 percent of the total IPC deposits in 

the market, w ith their only com petitor controlling 36.3 percent.

Colebrook National and Colebrook Savings presently have virtually no overlapping services. Colebrook Savings offers limited commercial and installment 

lending and Colebrook National does not accept savings and time deposits and 

makes no real estate loans. The banks do not compete fo r comparable services 

and they give the public the impression that they are but one bank. However, 

because o f the impending requirements of New Hampshire law to separate their

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

operations, there is the prospect that the tw o banks could become competitors 

in the future, particularly if Colebrook Savings were to begin offering NOW 

accounts and Colebrook National were to begin offering time deposits and real 

estate loans. In order fo r all three Colebrook banks to continue to operate as 

viable and effective competitors, there must be a reasonable prospect that the 

market area would support their independent operations. The Corporation 

does not feel that such a finding can be made in this case. The future economy 

of the area is not bright in view of the small population served, its declining 

trend, the relatively stagnant economic activity of the area, below average 

income levels, and the lack of any significant prospects fo r future expansion or 

industrial development. Even if the proposed merger is approved, the relatively 

small population of 3,600 persons in the relevant market would still have a 

choice between tw o "full-service" institutions. In addition, the merger would 

avoid the necessity o f dividing the scarce managerial resources currently available to both Colebrook National and Colebrook Savings.

It is the Corporation's view, under these facts, that the elimination of future 

potential com petition between Colebrook National and Colebrook Savings and 

the increase in deposit concentration which their consolidation would effect is 

not as competitively adverse or significant as such factors might be in a d iffe rent local market in New Hampshire. The Board of Directors, accordingly, is of 

the opinion that the proposed merger would not, in any section of the country, 

substantially lessen com petition, tend to create a monopoly, or in any other 

manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Colebrook National 

and Colebrook Savings are in satisfactory condition under their present operations and the resulting bank would have acceptable financial and managerial 

resources as well as future prospects.

Convenience and Needs o f the Community to be Served. The proposed 

merger would have little effect on the bank services presently offered in the 

Colebrook area. The one negative aspect of the transaction would be the reduction of interest rates paid by Colebrook Savings on time deposits under 

$100,000 in order to conform w ith the ceiling rate established fo r commercial 

banks. The impact of this reduced rate would be offset to a large degree by the 

emergence o f a commercial bank which would have the legal capacity to make 

larger loans and offer a broader range of banking services. Conceivably this and 

more vigorous commercial lending efforts could help stimulate the local economy.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted contingent upon Colebrook National's conversion to the status of a State nonmember insured bank.

R esources B a n k in g O ffic e s

\ in 

th o u san d s 

o f d o lla rs)

In

o p e ra tio n

T o be 

o p e ra te d

Heritage Savings Bank

Kingston, New York

132,082 3 6

to merge with

Beacon Savings Bank

Beacon

58,386 3

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 149

Summary report by A ttorney General, September 10, 1974 

The nearest offices of the parties are separated by a distance of about 20 

miles w ith several competitive alternatives located in the intervening area. A lthough the application indicates some deposit and loan overlap between the 

parties, it does not appear that the proposed merger would eliminate substantial existing com petition. However, Heritage's proposed office in Fishkill 

w ill place that institution in Dutchess County w ithin about 6 miles of Beacon's 

main office. Thus, it appears that the proposed merger would eliminate the 

likelihood of increased com petition between the parties in the future.

Although Heritage, the largest mutual savings bank in Ulster County, could 

branch de novo into the area served by Beacon (indeed, it w ill soon do so), the 

effects o f the transaction on potential com petition are diminished somewhat 

by the existence of other significant potential entrants.

Basis fo r Corporation approval, November 20, 1974 

Heritage Savings Bank, Kingston, New York, an insured mutual savings bank 

w ith total resources of $132,082,000 and total deposits of $122,527,000, has 

applied, pursuant to Section 18(c) and other provisions of the Federal Deposit 

Insurance Act, for the Corporation's prior consent to merge w ith Beacon Savings Bank, Beacon, New Y ork, w ith total resources o f $58,386,000 and total 

deposits of $54,240,000, under the charter and w ith the title o f Heritage 

Savings Bank. The three offices of Beacon Savings Bank would become 

branches of the resulting bank, increasing the number of its offices to seven, 

including its one approved but unopened branch.

Competition. Heritage Savings Bank has its main office in Kingston, one 

branch in Ulster, and another branch in Spring Valley in Rockland County, 

approximately 60 miles south o f the main office. A ll three of these existing 

offices are west of the Hudson River in New York's Third Banking District. 

Heritage Savings Bank has one approved but unopened branch, located in 

Fishkill in the southern portion of Dutchess County. This proposed branch 

represents its initial entry east of the Hudson River. Beacon Savings Bank has 

its main office in Beacon and branches in Red Oaks Mill and Pleasant Valley, 

all three of which are in Dutchess County. The trade areas of the two banks 

overlap to a small degree in the Poughkeepsie area of Dutchess County.

The market area most affected by this proposed transaction would be those 

areas of Dutchess and Putnam Counties east of the Hudson River w ithin a 

1 0 -15m ile radius of Beacon. The 1970 population of Dutchess County was 

222,295, up 26.3 percent during the prior 10-year period, and the population 

of Putnam County was 56,696, up 78.7 percent fo r the same period. The 

economy of the area is dominated by the presence of a large IBM complex 

located near Poughkeepsie. Approxim ately 75 percent of the area work force is 

employed by IBM in management, technical, and highly skilled positions, w ith 

above average incomes. The 1973 household median buying levels for Dutchess 

and Putnam Counties were $11,287 and $10,746, respectively. The comparable 

figure for the State of New Y ork was $10,264. The described market area is 

located north of, and in close proxim ity to, expanding metropolitan New Y ork 

City which seems to assure continued favorable prospects fo r growth.

There are 14 offices of 6 th rift institutions— 4 mutual savings banks and 2 

savings and loan associations— in the relevant market area. The Poughkeepsie 

Savings Bank is dominant in the area w ith almost 62 percent of the total

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

deposits in such institutions. Beacon Savings Bank ranks third w ith about 11.5 

percent of such deposits. Both market shares would be lowered if the w ith ­

drawable funds of the local credit unions, including the $45-m illion IBM credit 

union, were included. The proposed transaction would not eliminate significant 

existing com petition between Heritage Savings Bank and Beacon Savings Bank, 

since their trade areas overlap only in the Poughkeepsie area which is presently 

dominated by The Poughkeepsie Savings Bank. The deposits the two banks 

now hold in this area are insignificant relative to their total deposits, and they 

have only a small number of common deposit and loan accounts. If this proposed transaction were to be approved, there would remain an adequate number of alternate institutions located in the area to provide fo r customer convenience and choice.

While Heritage Savings Bank and Beacon Savings Bank do not compete 

significantly w ith each other at the present time, there is some potential fo r 

increased com petition between them in the future through de novo branching. 

Heritage Savings Bank has an approved but unopened branch at Fishkill in 

Dutchess County, only 6 miles east of Beacon Savings Bank's main office. The 

proposed transaction would eliminate that potential fo r future com petition, 

but it is not considered com petitively significant in view of the many alternate 

th rift institutions operating in the relevant market and the large number that 

can enter this market as it becomes attractive for further de novo branching.

As provided by New York State law, mutual savings banks and savings and 

loan associations may branch de novo anywhere w ithin the banking district in 

which they are headquartered, subject to home office protection restrictions. 

Only one of the Third Banking District's 10 largest mutual th rift institutions is 

presently in the growing and affluent market most likely to be affected by the 

proposed merger. Furthermore, on and after January 1, 1976, New Y ork State 

law provides that mutual savings institutions may branch de novo anywhere 

w ithin the State of New Y ork, subject to similar restrictions. The number of 

potential entrants in addition to Heritage Savings Bank is therefore high, both 

before and after January 1, 1976. In addition, this proposed transaction w ill 

convert the home office of Beacon Savings Bank into a branch office of the 

resulting bank, thus eliminating the home office protection presently provided, 

to Beacon Savings Bank and allowing another th rift institution to branch into 

Beacon.

If the proposed transaction is approved, the resulting bank would rank sixth 

in deposit size among all mutual savings banks and savings and loan associations 

in the Third Banking District, w ith only 3.4 percent of their total deposits. 

With the rapid population growth projected for the Third Banking District, and 

w ith the provisions fo r statewide branching effective in 1976, this increase in 

the concentration of banking resources is not substantial and in any event is 

not likely to be permanent.

Under the circumstances described, the Board of Directors has concluded 

that the proposed transaction would not, in any section o f the country, substantially lessen com petition, tend to create a monopoly, or in any other 

manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Both Heritage Savings Bank and Beacon Savings Bank have satisfactory financial and managerial 

resources fo r their respective businesses and both institutions have favorable 

prospects fo r the future.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 151

Convenience and Needs o f the Community to be Served. The resulting bank 

would offer services not now available to Beacon Savings Bank customers, 

including no-passbook savings accounts for deposit customers and tract acquisition and development lending services. The larger resulting bank would also 

have an increased lending capability and should provide more effective competition fo r numerous banking services offered by other institutions in the 

areas served.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

R esources

(in

th ousands 

o f d o lla rs )

B a n k in g O ffic e s

I n

o p e ra tio n

T o be 

o pe ra te d

First Trust Union Bank

Wellsville, New York

103,833 12 13

to merge with

State Bank of Randolph

Randolph

10,622 1

Summary report by Attorney General, September 4, 1974 

Bank is located about 18 miles west of Applicant's nearest office in Cattaraugus County, w ith no competitive alternatives in the intervening area. 

Thus, it appears that the proposed merger would eliminate some existing competition between the parties. However, it does not appear that concentration 

would be substantially increased in any relevant banking market.

Therefore, we conclude that the proposed transaction would not have a 

substantial competitive impact.

Basis fo r Corporation approval, November 20, 1974 

First Trust Union Bank, Wellsville, New Y ork ("F irst U nion"), a State nonmember insured bank w ith total resources of $103,833,000 and total IPC 

deposits of $77,816,000, has applied, pursuant to Section 18(c) and other 

provisions of the Federal Deposit Insurance Act, for the Corporation's prior 

w ritten consent to merge w ith State Bank of Randolph, Randolph, New Y ork 

("SB-Randolph"), a State nonmember insured bank w ith total resources of 

$10,622,000 and total IPC deposits of $8,364,000. The banks would merge 

under the charter and title of First Union and, as an incident to the merger, the 

sole office of SB-Randolph would become a branch of the resulting bank, 

increasing the number of its authorized offices to 13.

Competition. First Union operates 12 offices (2 are limited service facilities) 

in Allegany and Cattaraugus Counties of New York's Ninth Banking District. 

These tw o contiguous counties in western New York border Pennsylvania. 

Their combined 1970 population was 128,124, an increase of 3.2 percent over 

1960. New Y ork State, as a whole, had an 8.7 percent population increase in the 

like period. The 1973 median household buying level was $8,263 fo r Allegany 

County and $8,534 for Cattaraugus County, considerably below the State level

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

of $10,264. First Union is a subsidiary of Security New York State Corporation, Rochester, New York ("Security NYS C orporation"), a registered m u ltibank holding company whose nine banks have total deposits of $745.5 m illion.

SB-Randolph operates its only office in Randolph (1970 population 1,498, 

up 5.9 percent since 1960), Cattaraugus County, which is approximately 70 

miles west of Wellsville. The population of Cattaraugus County is 81,666, an 

increase of only 1.8 percent over 1960. The Randolph area is prim arily agricultural (dairy farming), w ith some industry located in the cities of Jamestown 

and Salamanca.

SB-Randolph's primary market area, where the impact of the proposed 

merger would be most immediate and direct, is believed to include those parts 

of southwest Cattaraugus and southeast Chautauqua Counties w ithin a 15- 

road-mile radius of Randolph, plus the city of Salamanca (1970 population 

7,877, down 7.1 percent from 1960) which lies 20 road-miles to the east of 

Randolph but is easily reached by area residents. W ithin this market of approximately 80,000 persons, 8 commercial banks operate 24 offices holding IPC 

deposits aggregating $277,592,000.

SB-Randolph has the sixth largest share o f such deposits, 3.0 percent, while 

the tw o market area offices of First Union, both located in Salamanca, have 

the fifth largest share, 3.6 percent. The resulting bank would have 6.6 percent 

of total IPC commercial bank deposits, the fourth largest share of the primary 

market area, but far behind the holders (all subsidiaries of large multibank 

holding companies) of the three largest shares: Marine Midland BankChautauqua, National Association, Jamestown, 31.1 percent; Bankers Trust 

Company of Western New Y ork, Jamestown, 28.4 percent; and The First 

National Bank of Jamestown, a subsidiary of Lincoln First Banks, Inc., 25.8 

percent.

In view of the number of alternatives for banking services available w ithin 

the relevant market, the small share of area deposits held by SB-Randolph, and 

the possibility that statewide branching, which becomes effective January 1, 

1976, w ill bring new competitors to the Jamestown and Salamanca areas, the 

elimination of existing com petition between the two banks by virtue of the 

proposed merger appears to have only limited competitive significance.

Both banks may, under present law, branch de novo throughout the Ninth 

Banking District, subject to home office protection. SB-Randolph, due to lim ited resources and a lack of branching experience, is not likely to expand 

through de novo branching. First Union, although having both the resources 

and experience for de novo branching, is not expected to branch de novo in the 

relevant banking market due to the static population trend of the area, the 

below average income level, the already low population for each existing commercial bank office, and the lack of attractive branching sites. However, even if 

First Union were to establish additional de novo branches in this area, it would 

not significantly affect com petition due to the small share of the market both 

applicant banks presently have. Thus, it appears the proposed merger would 

eliminate no significant potential for increased com petition between the two 

banks in the future through de novo branching.

Consummation of the proposed merger would have no significant effect on 

the concentration of commercial bank resources or the banking structure of 

the Ninth Banking District. In terms of total deposits held by the 26 banking 

organizations presently operating in this district, Security NYS Corporation,

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 153

w ith 2.7 percent of such deposits, ranks fifth largest. SB-Randolph, w ith 0.2 

percent, ranks 20th. Security NYS Corporation, as a result of the merger, 

would become the fourth largest commercial banking organization in the district, but would hold only 2.9 percent of total commercial bank deposits. The 

three largest commercial banking organizations in the Ninth Banking D is tric tMarine Midland Banks, Inc., Buffalo (41.1 percent); First Empire State Corporation, Buffalo (26.5 percent); and United Bank Corporation of New York, 

Albany (11.2 percent)— have 78.8 percent of the district's total commercial 

bank deposits.

Under these circumstances, the Board of Directors has concluded that the 

proposed merger would not, in any section of the country, substantially lessen 

com petition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. The financial and 

managerial resources of First Union and the resulting bank are adequate, and 

their future prospects are favorable.

Convenience and Needs o f the Community to be Served. Consummation of 

the proposed merger would provide customers of SB-Randolph w ith a wider 

variety of savings plans (including higher interest rates on passbook savings), 

convenient trust services, credit card services, and significantly larger lending 

limits.

Based on the foregoing inform ation, the Board of Directors has concluded 

that approval of the application is warranted.

Resources

(in

th o u san d s 

o f d o lla rs)

B a n k in g O ffic e s

I n

o p e ra tio n

T o be 

o pe ra te d

Industrial Valley Bank and Trust Company

Jenkintown, Pennsylvania

978,172 46 48

to merge with

The Neshaminy Valley Bank

Bensalem Township

14,912 2

Summary report by A ttorney General, August 23, 1974

Industrial Bank and Neshaminy Bank are headquartered about 11 miles 

apart w ith several of Industrial Bank's offices situated w ithin 10 to 15 miles of 

the nearest office of Neshaminy Bank. There are, however, several competitive 

alternatives in the intervening area. Thus, it appears that the proposed transaction would eliminate some existing com petition. However, it does not appear 

that banking concentration would be substantially increased in any relevant 

market.

The modest size of Neshaminy Bank in relation to other banks presently 

operating in lower Bucks County, together w ith the existence of other significant potential entrants in the Philadelphia area capable of entering Neshaminy 

Bank's service area, indicates that the proposed merger would not eliminate 

substantial potential competition.

Therefore, we conclude that the proposed transaction would not have a 

substantial competitive impact.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Basis fo r Corporation approval, November 20, 1974

Industrial Valley Bank and Trust Company, Jenkintown, Pennsylvania 

("IVB"), a State nonmember insured bank w ith total resources of 

$978,172,000 and total IPC deposits of $578,008,000, has applied, pursuant 

to Section 18(c) and other provisions o f the Federal Deposit Insurance A ct, for 

the Corporation's prior consent to merge w ith The Neshaminy Valley Bank, 

Bensalem Township, Pennsylvania ("Neshaminy Bank"), w ith total resources 

of $14,912,000 and total IPC deposits of $9,531,000. The resulting bank 

would have a total of 52 approved domestic offices, including the 2 offices 

presently operated by Neshaminy Bank.

Competition. IVB operates 47 domestic offices (8 in Chester County, 1 in 

Delaware County, 7 in Lehigh County, 14 in Philadelphia, 14 in Montgomery 

County, and 3 in Bucks County) and 1 offshore facility at Grand Cayman, 

Cayman Islands. Three additional branches, tw o in Chester County and one in 

Lehigh County, are approved but unopened. IVB is engaged in a wide range of 

commercial banking and trust activities and operates throughout southeastern 

Pennsylvania and the adjoining States, prim arily in the Pennsylvania section of 

the Philadelphia, Pennsylvania-Camden, New Jersey Standard Metropolitan 

Statistical Area ("S M S A "). Many other businesses are conducted by its w holly 

owned subsidiaries: Industrial Valley Title Insurance Company, Industrial 

Valley Real Estate Company, and IVB-Philadelphia Golf Classic, Incorporated.

Neshaminy Bank operates its main office in unincorporated Bensalem 

Township and a single branch 7 miles northeast in unincorporated Falls Tow nship, both in fast growing Bucks County, Pennsylvania, which is contiguous to 

Philadelphia and included in the SMSA. The 1970 population of Bucks County 

was 415,056, up 34.5 percent from 1960, compared to the 11.0 percent increase fo r the SMSA over the same period. The 1973 median household buying 

level fo r Bucks County was $12,018, compared to $10,587 fo r the SMSA and 

$9,588 fo r the State of Pennsylvania.

The local market in which the impact of the proposed merger would be 

most immediate and direct is the Pennsylvania portion of the SMSA. Forty 

commercial banks operate 661 offices w ithin this market and hold IPC deposits 

of more than $11.3 billion. Neshaminy Bank is the 31st largest commercial 

bank in this market, holding 0.1 percent of such deposits, while IVB, the 8th 

largest commercial bank, holds 4.3 percent of such deposits and the four 

largest banks hold 63.2 percent. The IVB office nearest to an office of 

Neshaminy Bank is approximately 10 miles away, and several offices of competing banks lie between the applicant banks. While each bank competes in the 

Philadelphia market, there is very little duplication o f deposit or loan business 

and the market share of Neshaminy Bank would indicate that no significant 

existing com petition between them would be eliminated by the proposed merger.

Pennsylvania law permits a commercial bank to branch de novo in its main 

office county and in counties contiguous thereto, but does not perm it statewide 

branching or statewide operation of multibank holding companies. Neshaminy 

Bank, although it has one branch, is not expected to undertake further de novo

branching activity because of its limited financial and managerial resources. 

IVB has both the resources arid ability to expand by means of de novo branching, but even if it were to branch de novo into the Bensalem-Falls Township 

area, the effect on com petition between the tw o banks would be slight in view

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 155

of the nominal share of the market held by Neshaminy Bank. There are, 

moreover, numerous other potential entrants into this same area. Thus it 

appears that any potential com petition likely to be eliminated by the proposed 

merger would have no significant competitive effect.

W ithin IVB's 7-county legal branching area, a total of 60 commercial banks 

operate 784 offices and hold area IPC deposits aggregating more than $13.2 

billion. IVB has the eighth largest share, 4.3 percent, while Neshaminy Bank, 

one of the smaller competitors, has only 0.1 percent. The resultant bank would 

retain IVB's ranking and hold 4.4 percent of the commercial bank IPC deposits 

in its legal branching area. The four largest banks represented in this contiguous-county area hold market shares varying from 18.6 percent to 9.4 percent o f such IPC deposits, w ith an aggregate of 54.1 percent. In view of the 

relatively small share of its potential branching area which the resultant bank 

would control and the number of significant sized competitors, it appears that 

the proposed merger would have no significant effect on commercial bank 

structure or concentration of banking resources in this contiguous-county area.

Under these circumstances, the Board o f Directors is of the opinion that the 

proposed merger would not, in any section of the country, substantially lessen 

com petition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. The resulting bank 

would have satisfactory financial and managerial resources, significantly im ­

proving those available to Neshaminy Bank. The future prospects of the resulting bank would be satisfactory.

Convenience and Needs o f the Community to be Served. The proposed 

merger would have no discernible effect on IVB's present customers. The 

merger would provide customers of Neshaminy Bank w ith increased lending 

limits, expanded commercial and installment loan accommodations, a variety 

of customer services made possible by the resulting bank's computer, and trust 

facilities.

Based on the foregoing, the Board o f Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands 

of dollars)

Banking Offices

I n

operation

To be 

operated

The Hastings City Bank

Hastings, Michigan

24,844 1 2

to consolidate with

Farmers State Bank of Middleville

Middleville

8,132 1

Summary report by A ttorney General, May 15, 1974 

Hastings and Middleville are located in Barry County, a mixed residential, 

industrial, and agricultural area located southeast o f Grand Rapids. The offices 

of the parties are separated by about 11 miles and, while there is one competing bank in Hastings, there are no competitive alternatives in the area between Hastings and Middleville. As a result of the close proxim ity of the

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

parties, there appears to be a substantial overlap in their respective service 

areas. The application indicates that Hastings Bank derives approximately 10 

percent of its deposits and loans from Middlevilie Bank's service area, and 

Middleville Bank draws approximately 30 percent of its deposits and loans 

from the service area of the Hastings Bank. Accordingly, we conclude that the 

proposed transaction w ill eliminate existing com petition in Barry County.

Five commercial banks maintain offices in Barry County. Hastings Bank, 

w ith approximately 39 percent of county deposits, is the leading bank in the 

county; the tw o largest banks hold approximately 65 percent of county deposits. Middleville Bank holds approximately 13 percent of county deposits 

and ranks fourth among the five banks w ith offices in Barry County. This 

proposed transaction, if consummated, w ill increase the share of the tw o largest banks to approximately 78 percent.

This increase in concentration may overstate the competitive effect of the 

proposed transaction, due to the proxim ity of competitive alternatives in the 

Grand Rapids area, which is about 15-20 miles northwest of Middleville. Nevertheless, we believe that the proposed consolidation would have an adverse 

effect on com petition in Barry County.

Basis fo r Corporation approval, November 29, 1974

The Hastings C ity Bank, Hastings, Michigan ("Hastings Bank"), an insured 

State nonmember bank w ith total resources of $24,844,000 and total IPC 

deposits of $19,201,000, has applied, pursuant to Section 18(c) and other 

provisions of the Federal Deposit Insurance Act, fo r the Corporation's prior 

consent to consolidate w ith Farmers State Bank of Middleville, Middleville, 

Michigan ("Farm ers"), w ith total resources of $8,132,000 and total IPC deposits of $5,784,000. The banks would consolidate under the charter and w ith 

the title of Hastings Bank and, as an incident to the consolidation, the sole 

office of Farmers would become a branch of the resulting bank, increasing the 

number of its offices to two.

Competition. Hastings Bank operates its only office in Hastings (population 

6,501) and Farmers operates its sole office in Middleville (population 1,865). 

Both communities are in northern Barry County (1970 population 38,166, up

20.3 percent since 1960) which is located in the southwestern portion of the 

lower peninsula o f Michigan. The economy is a m ixture of residential, industrial, and agricultural activities w ith the latter expected to decrease in relative 

importance as residential development increases as a result of urban expansion. 

The 1973 median household buying level fo r Barry County was $8,953, about 

18 percent below the State figure of $10,932.

Barry County is surrounded by four of Michigan's larger cities, each of 

which is the central city of a different SMSA. These cities are: Lansing, the 

State capital, 42 miles east of Hastings; Grand Rapids, 35 miles northwest of 

Hastings; Kalamazoo, 36 miles southwest of Hastings; and Battle Creek, 25 

miles south of Hastings. In view of the fact that each of these population 

centers has an influence on a portion of the participating banks' service areas, 

and because of extensive comm utation for employment and shopping, the 

effects of the proposed consolidation would appear to be most pronounced in 

the legal branching area of Hastings Bank. This consists of Barry County and 

that area outside the county contained w ithin a 25-mile radius of Hastings. In 

this region there are 23 commercial banks operating 52 offices w ith aggregate

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 157

IPC deposits of $440,348,000, including offices of the State's larger banks. 

Hastings Bank has 4.4 percent of this total and Farmers has 1.3 percent. The 

resulting bank's 5.7 percent share would not represent a significant change in 

the existing commercial banking structure.

Hastings Bank and Farmers are about 11 miles apart, and both Hastings and 

Middieville are located on the main road between Grand Rapids and Battle 

Creek. Each bank derives some business from the area served by the other, and 

there appears to be some overlapping in their service areas. The proposed 

consolidation would, therefore, eliminate existing com petition between 

Hastings Bank and Farmers, but because of the relatively small size of both 

banks and the number of much larger competitors w ithin reasonable driving 

distance, this aspect of the proposed consolidation is not viewed as significant.

Michigan law would perm it Hastings Bank and Farmers to branch de novo

throughout Barry County and w ithin 25 miles of their main offices into areas 

outside Barry County. De novo entry is prohibited, however, in a city or 

village, like Hastings or Middleville, in which another bank office is located. 

Neither bank has ever attempted to establish de novo branches; the population 

per office in this relevant geographic area is already low and income levels are 

below statewide average. It is highly doubtful that significant additional competition between the tw o banks in the future would be eliminated by their 

proposed consolidation.

Neither of the participating banks is affiliated w ith a holding company, but 

many of the banks they compete w ith are subsidiaries of some of the largest 

m ultibank holding companies in Michigan. The proposed consolidation should 

improve the competitive stance of the resulting bank vis-a-vis these large commercial banking organizations.

Based on the foregoing, the Board of Directors has concluded that the 

proposed consolidation would not, in any section of the country, substantially 

lessen com petition, tend to create a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future Prospects. Each of these factors 

is favorable w ith respect to the consolidating banks and is so projected for the 

resulting bank.

Convenience and Needs o f the Community to be Served. The proposed 

consolidation would have only a limited effect on existing customers of Hastings Bank. Farmers' customers would be offered trust services and more liberal 

lending policies w ith significantly larger lending limits. In addition, Farmers' 

physical facilities would be modernized.

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

To be 

operated

First State Bank of Oregon

Milwaukie, Oregon

137,498 16 21

to merge with

Great Western National Bank

Portland

51,157 5

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Summary report by A ttorney General, July 5, 1974 

Two o f Great Western's offices are located in downtown Portland, as is one 

office of First State. Both banks also operate offices in close proxim ity in the 

suburban communities of Beaverton and Gresham. Great Western's remaining 

office is located east o f the Willamette River opposite downtown Portland; 

First State's remaining offices are distributed throughout the Portland area. In 

view of the proxim ity of their offices, it would appear that the proposed 

merger would eliminate direct com petition between the merging banks.

The effects of the proposed merger on concentration in commercial banking 

may be approximated by considering the three Oregon counties in the Portland 

area: Washington, Multnomah, and Clackamas. Banking in this area is highly 

concentrated, the tw o largest banks together accounting fo r about 73 percent 

of total commercial bank deposits. First State holds about 4.6 percent of 

tri-county deposits while Great Western holds about 1.7 percent. Thus, concentration would be somewhat increased by the proposed merger.

Basis for Corporation approval, November 29, 1974 

First State Bank of Oregon, Milwaukie, Oregon ("F irst State"), a State 

nonmember insured bank w ith total resources of $143,309,000 and IPC deposits of $115,031,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, fo r the Corporation's prior consent to merge under its charter and title w ith Great Western National Bank, 

Portland, Oregon ("G reat Western") (total resources $49,042,000; IPC deposits 

$32,850,000). The 5 offices of Great Western, as an incident to the merger, 

would be established as branches of the resulting bank, which thereupon would 

have a total of 23 approved offices.

Competition. First State operates 16 offices in the 3 adjoining counties of 

Clackamas, Multnomah, and Washington which comprise the Oregon portion of 

the Portland, Oregon-Washington SMSA, and holds the necessary supervisory 

approvals to establish 2 additional offices, 1 in each of the latter 2 counties. 

The city of Portland (population 380,620), the hub of this SMSA, is a center 

of commerce, industry, and finance and is the State's largest city. The aggregate 1970 population of these 3 counties was 878,676, an increase of 20.7 

percent during the 1960s, and the area now accounts for 42 percent of Oregon's total population.

Great Western has five offices, tw o in downtown Portland and one each in 

the nearby communities of East Portland, Beaverton, and Gresham. It competes w ith First State in each of these communities except East Portland and 

faces significant com petition in all four communities from First National Bank 

of Oregon and United States National Bank of Oregon, the State's two dom inant banks, who together control local area IPC deposit shares ranging from

61.3 percent in downtown Portland to 90.2 percent in East Portland.

While there is existing com petition between First State and Great Western in 

the immediate area of all Great Western branches except the one in East 

Portland, the tw o banks have tended to cater to somewhat different clientele. 

First State encourages commercial customers, while Great Western is oriented 

more toward individual and installment borrowers. Moreover, since there are 

decent roads and municipal transit throughout the three-county area, this area 

appears to be the most relevant banking market w ithin which to measure the 

competitive impact of the proposed merger. In that local banking market, 16

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 159

commercial banks have 167 offices, w ith 108 such offices and 72.6 percent of 

total commercial bank IPC deposits held by the State's tw o largest banks. First 

State, the fifth ranking bank in this market, holds 4.9 percent of such IPC 

deposits and Great Western only 1.4 percent. Three other banks each have IPC 

deposit shares in excess of 2 percent w ith the nine remaining banks sharing the 

balance of the deposits. While some existing com petition between First State 

and Great Western would undoubtedly be eliminated by their proposed merger, 

the relative volume of such com petition does not appear to be substantial.

Oregon law permits a commercial bank to establish de novo branches 

throughout the State except in those incorporated places that have fewer than

50,000 inhabitants and contain the home office of a commercial bank. In the 

relevant three-county banking market, there is a potential for increased competition between the tw o banks in the future by virtue of de novo branching, 

particularly on the part of First State. The elimination of this potential competition by the proposed merger is unlikely to have much significance, however, in view of the extensive branch networks that the State's two major 

commercial banks have throughout the area and the number of other banks 

that may also be expected to pursue de novo branching opportunities as they 

become feasible.

Under these circumstances, the Board o f Directors is o f the opinion that the 

proposed merger would not, in any section of the country, substantially lessen 

com petition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Both banks have 

adequate financial resources, as would the resulting bank. Great Western's 

earnings performance, however, has been relatively poor and the earnings 

capability of its assets, under improved management in the resulting bank, 

should be strengthened. Managerial resources and future prospects of the resulting bank are considered satisfactory.

Convenience and Needs o f the Community to be Served. Credit cards, personal trust facilities, and computer services would become available at Great 

Western's offices follow ing the merger. In addition, Great Western customers 

should benefit from the greater lending capacity of 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

In

operation

To be 

operated

Union Trust & Savings Bank

Fort Dodge, Iowa

51,357 5 6

to merge with

Harcourt Savings Bank

Harcourt

3,022 1

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Summary report by A ttorney General, September 18, 1974 

Union Bank's main office is 17 miles north of Harcourt Savings Bank. Union 

Bank's offices in Burnside and Lehigh are both located about 12 road-miles 

northeast of Harcourt Savings Bank, w ith no banking offices in the intervening 

area. Thus, it appears that the proposed merger would eliminate existing competition between the parties.

Union Bank holds 29 percent of commercial bank deposits in Webster County, the second largest share held by the eight banks w ith offices in the county. 

Harcourt Savings Bank holds 1.7 percent of county deposits. Accordingly, we 

conclude that the proposed merger would have some adverse effects on competition in Webster County.

According to the application, certain directors of Union Bank currently 

hold 50.4 percent of the stock o f Harcourt Savings Bank. Directors or officers 

of Union Bank also constitute a m ajority of the board of directors of Harcourt 

Savings Bank. However, the application does not contain sufficient inform ation 

to fu lly evaluate the relevance of these facts, and we express no opinion on 

their effect on the foregoing competitive report.

Basis fo r Corporation approval, December 23, 1974

Union Trust & Savings Bank, Fort Dodge, Iowa ("U nion T rust"), a State 

nonmember insured bank w ith total resources of $51,357,000 and IPC deposits 

of $41,172,000, 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 w ith Harcourt Savings Bank, Harcourt, Iowa 

("H arcourt Bank"), w ith total resources of $3,022,000 and IPC deposits of 

$2,634,000. As an incident to the merger, Union Trust would establish the sole 

office of Harcourt Bank as a branch, thereby increasing the number of its 

offices to six.

Competition. Union Trust operates a total of five offices: its main office 

and one branch in Fort Dodge and one branch each in Burnside, Duncombe, 

and Lehigh, small suburban towns w ithin 17 road-miles of Fort Dodge, all in 

Webster County (population 48,391) in the northwestern quadrant of the State 

of Iowa. Fort Dodge (population 31,263), which is located 90 road-miles 

northwest of Des Moines, is the county seat of Webster County and the trading 

center for a much broader region. Industry in Fort Dodge is diversified w ith 

meat packing and the manufacture of pharmaceuticals, electrical equipment, 

and gypsum products being the major activities. Corn and soybeans are extensively raised in the surrounding area.

The area in which competitive effects of the proposed merger would be 

most immediate and direct comprises southern Webster County and portions of 

contiguous Boone and Greene Counties— communities w ithin a radius of some 

15 road-miles of Harcourt. Seven commercial banks are represented in this 

local market, their 8 area offices serving an estimated population of 9,700 and 

holding IPC deposits aggregating about $23.4 m illion. Harcourt Bank holds the 

fifth largest share, about 11.2 percent, of these deposits. Union Trust has two 

offices in this market, located 12 road-miles and 14 road-miles northeast of 

Harcourt, w ith no other commercial bank offices intervening. These tw o area 

offices of Union Bank hold the fourth largest share, some 13.6 percent, of such

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 161

deposits.* Although existing com petition between Union Trust and Harcourt 

Bank would be eliminated by their merger, this anticompetitive effect is m itigated by the small size of the local market and the number of banking alternatives remaining in the market. The First State Bank of Gowrie, 6 miles west 

of Harcourt, w ith about 24.4 percent of the market's IPC deposits and Iowa 

State Bank and Trust Company, located in Dayton 6 miles east of Harcourt, 

with about 23.4 percent of such deposits both have market'shares comparable 

to the resulting bank's 24.8 percent, while the three other banks in this market 

would continue to be effective competitors.

A close relationship has existed between Union Trust and Harcourt Bank 

since 1950 when the m ajority of Harcourt Bank's stock was acquired by several 

directors of Union Trust. Were this relationship to terminate, it is doubtful that 

a significant potential for increased com petition between the tw o banks 

through de novo branching would exist. Harcourt Bank has been operated as a 

unit bank ever since its establishment in 1905 and does not possess the managerial and financial resources to facilitate its de novo expansion. Union Trust, 

for its part, has tw o branches (established in 1934 and 1949) in Harcourt 

Bank's market and would probably find further de novo branching in this 

market uneconomical.

In its maximum potential market understate law— Webster County and the 

7 counties contiguous to or cornering upon Webster County— the resultant 

bank would hold the second largest share (7.5 percent) of the IPC deposits 

controlled by all area offices of the 52 commercial banks represented therein. 

The largest share of this potential market, 7.9 percent of such deposits, is held 

by First National Bank, Fort Dodge. Three other banks in the market, holding 

7.2 percent of such deposits, are controlled by Brenton Banks, Inc., Des 

Moines, the fourth largest banking organization in the State. One other m u ltibank holding company is represented: Hawkeye Bancorporation, Des Moines, 

the State's third largest banking organization, which controls a bank having 3.7 

percent of the area's total commercial bank IPC deposits.

Based on the foregoing, the Board of Directors has concluded that the 

proposed merger would not, in any section o f the country, substantially lessen 

com petition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Each o f the proponent banks has satisfactory financial resources. Managerial resources of Harcourt Bank, were Union Trust's supervision of the bank's affairs terminated, 

would be less than adequate. Future prospects of the resultant bank appear to 

be favorable.

Convenience and Needs o f the Community to be Served. Customers of 

Harcourt Bank would find the resultant bank's lending lim it 13 times greater 

than that o f Harcourt Bank. Trust facilities would become available at the 

Harcourt location and an interest-bearing savings club would be introduced. 

The rate of interest now being paid on Harcourt Bank's savings deposits would 

be increased from 4 percent to 5 percent per annum.

Based on the foregoing, the Board o f Directors has concluded that approval 

of the application is warranted.

*P roponents' percentage shares w ould be reduced were data available concerning deposits 

held by one area o ffice o f a com peting bank.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Merger transactions were involved in the acquisitions of banks by holding 

companies in the follow ing approvals in 1974. In each instance, the A ttorney 

General's report stated that the proposed transaction would have no effect on 

com petition. 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.

Citizens Fidelity Bank and Trust Company, Louisville, Kentucky; offices: 

39; resources: 819,850 ($000); to merge w ith Citizens Fidelity State Banking

and Trust Company, Louisville, in organization; offices: 0; resources: 600 

($000). Approved: January 14.

Ann Arbor Bank, Ann Arbor, Michigan; offices: 11; resources: 191,387 

($000); to consolidate w ith Ann Arbor State Bank, Ann Arbor, in organization; offices: 0; resources: 120 ($000). Approved: January 14.

Security Bank and Trust Company, Southgate, Michigan; offices: 7; resources: 400,259 ($000); to merge w ith SBTC Bank, Southgate, in organization; offices: 0; resources: 121 ($000). Approved: January 14.

Valley Bank o f Fort Payne, Fort Payne, Alabama, in organization; offices: 

0; resources: 100 ($000); to merge w ith and change title to Fort Payne Bank,

Fort Payne; offices: 1; resources: 15,600 ($000). Approved: January 29.

Zeeland State Bank, Zeeland, Michigan, in organization; offices: 0; resources: 120 ($000); to consolidate w ith and change title to First Michigan

Bank and Trust Company, Zeeland; offices: 10; resources: 107,324 ($000). 

Approved: January 29.

The Wooster Banking and Trust Company, Wooster, Ohio, in organization; 

offices: 0; resources: 625 ($000); to merge w ith and change title to The Commercial Banking & Trust Company, Wooster; offices: 4; resources: 28,380 

($000). Approved: January 29.

South Street State Bank, Arlington, Texas, in organization; offices: 0; resources: 200 ($000); to merge w ith and change titie to Arlington Bank and

Trust, A rlington; offices: 1; resources: 92,993 ($000). Approved: January 29.

New Farmers State Bank & Trust Company, Cuero, Texas, in organization; 

offices: 0; resources: 75 ($000); to merge w ith and change title to Farmers

State Bank & Trust Company, Cuero; offices: 1; resources: 10,214 ($000); 

Approved: January 29.

Union Commerce Bank, Fort Worth, Texas, in organization; offices: 0; resources: 200 ($000); to merge w ith and change title to Union Bank o f Fort

Worth, Fort W orth; offices: 1; resources: 28,591 ($000). Approved: January 

29.

New Community State Bank, Runge, Texas, in organization; offices: 0; 

resources: 50 ($000); to merge w ith and change title to Community State

Bank, Runge; offices: 1; resources: 3,474 ($000). Approved: January 29.

New Smiley State Bank, Smiley, Texas, in organization; offices: 0; resources: 50 ($000); to merge w ith and change title to Smiley State Bank,

Smiley; offices: 1; resources: 1,849 ($000). Approved: January 29.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 163

New Home State Bank, Westhoff, Texas, in organization; offices: 0; resources: 50 ($000); to merge w ith and change title to Home State Bank, 

Westhoff; offices: 1; resources: 1,125 ($000). Approved: January 29.

Hamilton Bank o f Dalton, Dalton, Georgia; offices: 4; resources: 42,352 

($000); to merge w ith Dalton State Bankr Dalton, in organization; offices: 0; 

resources: 600 ($000). Approved: February 8.

New Deer Park Bank, Deer Park, Texas, in organization; offices: 0; resources: 75 ($000); to merge w ith and change title to Deer Park Bank, Deer 

Park; offices: 1; resources: 20,610 ($000). Approved: February 14.

New Fairbanks Bank o f Houston, Houston, Texas, in organization; offices: 

0; resources: 200 ($000); to merge w ith and change title to Fairbanks Bank o f

Houston, Houston; offices: 1; resources: 17,071 ($000). Approved: February 

14.

New Memorial Bank, Houston, Texas, in organization; offices: 0; resources: 

200 ($000); to merge w ith and change title to Memorial Bank, Houston; o ffices: 1; resources: 40,012 ($000). Approved: February 14.

New Citizens Bank, Kilgore, Texas, in organization; offices: 0; resources: 75 

($000); to merge w ith and change title to Citizens Bank, Kilgore; offices: 1; 

resources: 20,700 ($000). Approved: February 14.

New Clear Creek Bank, Seabrook, Texas, in organization; offices: 0; resources: 50 ($000); to merge w ith and change title to Clear Creek Bank,

Seabrook; offices: 1; resources: 11,937 ($000). Approved: February 14.

Bank o f Guntersville, Guntersville, Alabama, in organization; offices: 0; 

resources: 100 ($000); to merge w ith and change title to Citizens Bank o f

Guntersville, Guntersville; offices: 3; resources: 15,354 ($000). Approved: 

March 1.

Everhart Staples State Bank, Corpus Christi, Texas, in organization; offices: 

0; resources: 200 ($000); to merge w ith and change title to Parkdale State

Bank, Corpus Christi; offices: 1; resources: 28,952 ($000). Approved: March 

20.

Hamilton State Bank o f McMinnville, McMinnville, Tennessee, in organization; offices: 0; resources: 112 ($000); to merge w ith and change title to 

Citizens State Bank, McMinnville; offices: 2; resources: 5,468 ($000). A pproved: A pril 11.

Bank o f Virginia — Eastern Shore, Accomack County, Virginia, in organization; offices: 0; resources: 2,000 ($000); to acquire the assets and assume the 

deposit liabilities of the Hailwood Branch o f Bank o f Virginia — Central, Hallwood; offices: 1; resources: 20,041 ($000). Approved: A pril 11.

The State Bank o f Clarksville, Clarksville, Tennessee, in organization; o ffices: 0; resources: 150 ($000); to merge w ith and change title to First Trust &

Savings Bank, Clarksville; offices: 5; resources: 39,366 ($000). Approved: 

A pril 26.

Northline State Bank, Houston, Texas; offices: 1; resources: 14,687 ($000); 

to merge w ith New Northline State Bank, Houston, in organization; offices: 0; 

resources: 200 ($000). Approved: A pril 26.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

The Guaranty State Bank o f New Braunfels, New Braunfels, Texas; offices: 

1; resources: 18,671 ($000); to merge w ith First Guaranty State Bank, New 

Braunfels, in organization; offices: 0; resources: 200 ($000); Approved: A pril 

26.

Bank o f Gore, Inc., Gore, Virginia, in organization; offices: 0; resources: 50 

($000); to merge w ith and change title to Western Frederick Bank, Gore; 

offices: 1; resources: 4,384 ($000). Approved: A pril 26.

Alabama Bank o f Andalusia, Andalusia, Alabama, in organization; offices: 

0; resources: 100 ($000); to merge w ith and change title to Covington County

Bank, Andalusia; offices: 1; resources: 19,777 ($000). Approved: May 2.

Alabama Bank o f Goodwater, Goodwater, Alabama, in organization; o ffices: 0; resources: 225 ($000); to merge w ith and change title to City Bank o f

Goodwater, Goodwater; offices: 1; resources: 9,341 ($000). Approved: May 2.

Alabama Bank o f Lineville, Lineville, Alabama, in organization; offices: 0; 

resources: 25 ($000); to merge w ith and change title to City Bank o f Lineville,

Lineville; offices: 1; resources: 7,715 ($000). Approved: May 2.

Alabama Bank o f Roanoke, Roanoke, Alabama, in organization; offices: 0; 

resources: 255 ($000); to merge w ith and change title to City Bank o f Roanoke, Roanoke; offices: 2; resources: 11,045 ($000). Approved: May 2.

Alabama Bank o f Tuskegee, Tuskegee, Alabama, in organization; offices: 0; 

resources: 100 ($000); to merge w ith and change title to City Bank o f Tuskegee, Tuskegee; offices: 2; resources: 10,276 ($000). Approved: May 2.

FHB Bank, Honolulu, Hawaii, in organization; offices: 0; resources: 1,500 

($000); to merge w ith and change title to First Hawaiian Bank, Honolulu; 

offices: 44; resources: 864,650 ($000). Approved: May 2.

FSB Bank, Ionia, Michigan, in organization; offices: 0; resources: 120 

($000); to consolidate w ith and change title to First Security Bank, Ionia; 

offices: 5; resources: 61,273 ($000). Approved: May 2.

Chemical Bank and Trust Company, Midland, Michigan; offices: 9; resources: 137,555 ($000); to consolidate w ith CBTBank Company, Midland, in 

organization; offices: 0; resources: 120 ($000). Approved: May 2.

Manufacturers Bank o f Saline, Saline, Michigan, in organization; offices: 0; 

resources: 120 ($000); to consolidate w ith and change title to Saline Savings

Bank, Saline; offices: 2; resources: 14,182 ($000). Approved: May 2.

Highland Commerce Bank, San A ntonio, Texas, in organization; offices: 0; 

resources: 200 ($000); to merge w ith and change title to Highland Park State

Bank, San A ntonio; offices: 1; resources: 73,415 ($000). Approved: May 2.

Wilson County Bank and Trust Company, Wilson, North Carolina, in organization; offices: 0; resources: 375 ($000); to merge w ith and change title to 

Branch Banking and Trust Company, Wilson; offices: 64; resources: 388,765 

($000). Approved: May 29.

Almeda- Genoa Bank, Houston, Texas; offices: 1; resources: 10,203 

($000); to merge w ith New Almeda - Genoa Bank, Houston, in organization; 

offices: 0; resources: 200 ($000). Approved: May 29.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 165

Meyerland Bank, Houston, Texas; offices: 1; resources: 22,083 ($000); to 

merge w ith New Meyerland Bank, Houston, in organization; offices: 0; resources: 200 ($000). Approved: June 4.

Bank o f Hartselle, Hartselle, Alabama, in organization; offices: 0; resources: 

100 ($000); to merge w ith and change title to American Bank & Trust Company, Hartselle; offices: 1; resources: 14,776 ($000). Approved: July 2.

Chattanooga State Bank, Chattanooga, Tennessee, in organization; offices: 

0; resources: 300 ($000); to merge w ith and change title to Pioneer Bank,

Chattanooga; offices: 12; resources: 120,354 ($000). Approved: July 8.

M B T Bank, Chicago, Illinois, in organization; offices: 0; resources: 350 

($000); to merge w ith and change title to Madison Bank and Trust Company, 

Chicago; offices: 1; resources: 86,011 ($000). Approved: July 11.

Mount Juliet State Bank, Mount Juliet, Tennessee, in organization; offices: 

0; resources: 75 ($000); to merge w ith and change title to Bank o f Mount

Juliet, Mount Juliet; offices: 1; resources: 10,348 ($000). Approved: July 26. 

Rescinded: December 16.

The Shoreman's Bank, Salisbury, Maryland, in organization; offices: 0; resources: 90 ($000); to merge w ith and change title to Truckers and Savings

Bank, Salisbury; offices: 3; resources: 15,672 ($000). Approved: September 

12.

Alabama Bank o f Lauderdale County, Anderson, Alabama, in organization; 

offices: 0; resources: 77 ($000); to merge w ith and change title to Farmers

Bank, Anderson;offices: 1; resources: 6,306 ($000). Approved: September 20.

Alabama Bank o f Selma, Selma, Alabama, in organization; offices: 0; resources: 100 ($000); to merge w ith and change title to Citizens Bank & Trust

Company, Selma; offices: 2; resources: 21,528 ($000); Approved: September 

20.

First Guaranty State Bank, New Braunfels, Texas, in organization; offices: 

0; resources: 200 ($000); to merge w ith and change title to The Guaranty State

Bank o f New Braunfels, New Braunfels; offices: 1; resources: 18,790. A pproved: September 20.

Mobile County Bank,Bayou La Batre, Alabama, in organization; offices: 0; 

resources: 100 ($000); to merge w ith Farmers and Marine Bank, Bayou La 

Batre; offices: 2; resources: 5,824 ($000). Approved: October 1.

OSB Bank, Owosso, Michigan, in organization; offices: 0; resources: 120 

($000); to consolidate w ith The Owosso Savings Bank, Owosso; offices: 8; 

resources: 102,184 ($000). Approved: October 1.

Jacobus State Bank, Milwaukee, Wisconsin, in organization; offices: 0; resources: 600 ($000); to acquire the assets and assume the deposit liabilities of 

(and change title to) Heritage Bank o f Milwaukee, Milwaukee; offices: 3; resources: 45,588 ($000). Approved: October 1.

North Shore Bank and Trust Company, Lynn, Massachusetts, in organization; offices: 0; resources: 0 ($000); to merge w ith North Shore Bank and

Banking Company, Lynn; offices: 2; resources: 5,943 ($000). Approved: 

October 15.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

United Virginia Bank o f Gloucester, Gloucester, Virginia, in organization; 

offices: 0; resources: 50 ($000); to merge w ith Bank o f Gloucester, Gloucester; 

offices: 2; resources: 28,693 ($000). Approved: October 15.

First State Bank o f Newaygo, Newaygo, Michigan; offices: 1; resources: 

8,326 ($000); to consolidate w ith FSN Bank, Newaygo, in organization; o ffices: 0; resources: 120 ($000). Approved: October 22.

Madison State Bank, Rexburg, Idaho, in organization; offices: 0; resources: 

1,300 ($000); to merge w ith and change title to Valley Bank, Rexburg; offices: 

6; resources: 85,011 ($000). Approved: October 29.

Bank o f Mount Clemens, M ount Clemens, Michigan, in organization; offices: 

0; resources: 122 ($000); to consolidate w ith and change title to Mount

Clemens Bank, Mount Clemens; offices: 7; resources: 102,252 ($000). A pproved: October 30.

New Bank o f Lake County, Lakeport, California, in organization; offices: 0; 

resources: 67 ($000); to merge w ith and change title to Bank o f Lake County,

Lakeport; offices: 3; resources: 14,776 ($000). Approved: November 6.

OSS Bank, Oscoda, Michigan, in organization; offices: 0; resources: 130 

($000); to consolidate w ith and change title to The Oscoda State Savings Bank,

Oscoda; offices: 2; resources: 12,717 ($000). Approved: November 8.

Idaho Bank and Trust Company, Pocatello, Idaho; offices: 18; resources: 

209,258 ($000); to merge w ith IBT, Inc., Pocatello, in organization; offices: 0; 

resources: 0 ($000). Approved: November 14.

Pecan Street State Bank, Coleman, Texas, in organization; offices: 0; resources: 75 ($000); to merge w ith and change title to Coleman Bank, Coleman; 

offices: 2; resources: 19,050 ($000). Approved: November 21.

New Cullen Center Bank & Trust, Houston, Texas, in organization; offices: 

0; resources: 200 ($000); to merge w ith and change title to Cullen Center Bank

& Trust, Houston; offices: 4; resources: 241,541 ($000). Approved: November

29.

The State Bank o f McEwen, McEwen, Tennessee, in organization; offices: 0; 

resources: 75 ($000); to merge w ith and change title to The Union Bank,

McEwen; offices: 2; resources: 15,110 ($000). Approved: December 31.

New Union State Bank o f Beaumont, Beaumont, Texas, in organization; 

offices: 0; resources: 200 ($000); to merge w ith and change title to Union

State Bank o f Beaumont, Beaumont; offices: 1; resources: 9,723 ($000). A p ­

proved: December 31.

New American Bank and Trust Company, Houston, Texas, in organization; 

offices: 0; resources: 200 ($000); to merge w ith and change title to American

Bank and Trust Company, Houston; offices: 2; resources: 51,174 ($000). A p ­

proved: December 31.

New KirbyviUe State Bank o f Kirbyville, Kirbyville, Texas, in organization; 

offices: 0; resources: 50 ($000); to merge w ith and change title to The Kirbyville State Bank o f Kirbyville, Kirbyville; offices: 1; resources: 8,903 ($000). 

Approved: December 31.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 167

New Security Bank, Spring, Texas, in organization; offices: 0; resources: 75 

($000); to merge w ith and change title to Security Bank, Spring; offices: 1; 

resources: 17,758 ($000). Approved: December 31.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTION DENIED BY THE CORPORATION

168 FEDERAL DEPOSIT INSURANCE CORPORATION

Resources 

(in 

thousands 

of dollars)

Banking Offices

I n

operation

To be 

operated

The Bank of South Texas

Alice, Texas

25,447 1 1

to merge with

First National Bank of Alice

Alice

16,260 1

Summary report by A ttorney General, December 10, 1974 

There are six banks, each w ith one office, in Jim Wells County. Three are in 

Alice; one is in Orange Grove about 15 miles from Alice; one is in Sandia about 

20 miles from Alice; and one is in Premont, about 30 miles from Alice. A p p licant ranks second in total county deposits w ith nearly 25 percent, while Bank 

ranks third w ith approximately 18 percent. The county's largest bank, located 

in Alice, controls about 47 percent of total deposits.

The proponents' offices are located about 2 miles apart in the city of Alice. 

Applicant is the second largest of three Alice banks, accounting fo r nearly 28 

percent of total city deposits, while Bank is the smallest of the three w ith 

almost 20 percent.

The application indicates that the banks are presently under common 

ownership and management. A group o f 16 persons (one of these is actually an 

estate) currently owns 181,871 shares, or about 73 percent, of the 250,000 

authorized and outstanding shares of capital stock of Applicant; the same 

group owns 119,976 shares, or about 80 percent, of the 150,000 authorized 

and outstanding shares of Bank's capital stock. Even more significant is the fact 

that one individual, W. Frederick Erck, owns nearly 57 percent (141,628 

shares) of Applicant's stock and nearly 59 percent (87,999 shares) of Bank's 

stock. The application indicates that the existing common ownership was 

established in early 1970, when Applicant and Bank each held approximately 

$9 m illion in deposits.

In addition to common ownership, the proponents have tw o cases of common management. Mr. Erck serves as Chairman of the Board o f both Bank and 

Applicant and as President of Bank; he is also director of both banks. Mr. N.O. 

Adams, Jr. serves as President of Applicant and Vice President of Bank; he too 

is a director of both banks.

In view of their common ownership and management, it appears unlikely 

that substantial com petition presently exists between the parties to the proposed transaction. Their merger would, however, make permanent whatever 

lessening of com petition occurred when the banks became commonly owned.

Basis for Corporation denial, December 31, 1974 

The Bank of South Texas, Alice, Texas, a State nonmember insured bank 

w ith total resources of $25,447,000 and total IPC deposits o f $18,422,000, has 

applied, pursuant to Section 18(c) and other provisions of the Federal Deposit

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTION DENIED BY THE CORPORATION 169

Insurance Act, for the Corporation's prior w ritten consent to merge under its 

charter and title w ith First National Bank of Alice, Alice, Texas ("F irst National"), w ith total resources of $16,260,000 and total IPC deposits of 

$11,182,000. In order to comply w ith State law, the only office of First 

National would be discontinued and the resulting bank would operate at the 

present office of Bank of South Texas.

In January 1970, Fredrick Erck purchased a m ajority interest in the outstanding capital stock of Bank of South Texas (57.9 percent) and of First 

National (58.6 percent). Both banks (or their predecessors) had operated independently fo r more than 30 years prior to Mr. Erck's acquisitions. For 

several years, Mr. Erck has served as chairman of each bank and is now also 

president of First National. While it is argued that no meaningful com petition 

between the tw o banks now or in the future would be eliminated by the 

proposed merger because of their present affiliation, and that the merger 

should be speedily approved, the Corporation believes that any such summary 

disposition of the application would encourage widespread evasion of the purposes of the Bank Merger Act.

A central purpose of the Bank Merger A ct is, of course, to preclude bank 

mergers that are significantly anticompetitive. If ownership or control of two 

or more banks by an individual, or group, were treated, ipso facto, as im munizing the proposed merger of the banks from scrutiny under the competitive 

standards of the Bank Merger Act, then the A ct would, in substantial respects, 

be rendered a nullity, since the purchase of stock control gives rise to no such 

supervisory review. And, presumably, under the reading of the law urged by 

the applicant, there would be no lim it to the number of banks, in a given 

geographic market, that an individual, or group, could so acquire. Congress 

could not have intended the Bank Merger A ct to be so easily frustrated.

The Corporation has consistently taken the position that, in cases such as 

this, it is pertinent to inquire whether the banks proposing to merge were 

meaningful competitors prior to their affiliation, whether such affiliation was 

effected before or after June 17, 1963 (the "grandfather" date used in connection w ith the Bank Merger A ct Amendments of 1966), and whether the banks 

have now, or had at the time of affiliation, the potential to become meaningful 

competitors but for the affiliation.* If the acquisition o f stock control elim inated substantial existing com petition, or foreclosed significant potential competition, between tw o or more banks sought to be merged, the merger would, 

obviously, give permanence to that anticompetitive effect. In the absence of 

any overriding banking factors or considerations o f the convenience and needs

*See, e.g., Basis fo r C orporation approval o f the merger o f The Farmers and Merchants 

Savings Bank w ith The Lone Tree Savings Bank, 1970 FD IC Annual Report 118, f. 1; 

Basis fo r C orporation approval of the consolidation o f Citizens State Bank w ith Em barrass State Bank, 1970 FD IC Annual Report 127, f. 1; Basis fo r C orporation denial o f the 

proposed acquisition o f The Citizens and Southern Bank o f Tucker by The Citizens and 

S outhern Em ory Bank, 1971 FD IC Annual Report 152, 154; Basis fo r C orporation 

approval o f the acquisition o f The Oil C ity Bank by Caddo T rust and Savings Bank, 1972 

FD IC Annual Report 119, f. 1; Basis fo r C orporation approval o f merger o f Peoples Bank 

and Trust Com pany w ith the N o rto n ville Bank, 1972 FD IC Annual Report 141, f. 1; and 

Basis fo r C orporation approval o f the merger o f State Savings Bank w ith The First 

N ational Bank o f Klem m e, 1973 FD IC Annual Report 94, f. 1. Cf. K in tn e r, A n Antitrust

Digitized 

Primer, 89-90.

for FRASER 

http://fraser.stlouisfed.org/ 

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

of the com m unity to be served, the Corporation believes such proposed mergers should be denied whether or not denial leads to disaffiliation.**

The Corporation has, therefore, proceeded to analyze the competitive factors presented by the proposed merger in the light of the situation existing at 

the time stock control of the tw o banks was acquired by Mr. Erck in 1970.

Competition. Alice is located in southern Texas some 43 miles west of 

Corpus Christi. It serves as the seat of Jim Wells County and is the principal 

commercial center fo r the county and a somewhat larger area. Alice's population was 20,121 in 1970, having declined by 3.5 percent since 1960. Median 

household income in Jim Wells County was $6,354 in 1973, which was 27.7 

percent below the statewide median. The economy of this area is based on 

agriculture and various industries in and around Alice, including oil field supply 

and meat packing.

The local banking market most relevant to an evaluation of the proposed 

merger can be approximated by the city of Alice and that area w ithin a radius 

of about 15 miles. This market covers a large area in central Jim Wells County 

and smaller portions of adjacent Duval, Kleberg, and Nueces Counties, where 

median household incomes in 1973 were $4,153, $7,492, and $8,556, respectively. The overall population of about 36,000 in the market is heavily concentrated in and around Alice. A t the present time, there are five commercial 

banks in this market, w ith total deposits of approximately $79 m illion. Bank 

of South Texas and First National rank second and third w ith respect to local 

market shares, which are 27.4 percent and 17.8 percent, respectively. Alice 

National Bank, Alice, Texas, ranks first w ith 43.6 percent; First State Bank of 

San Diego, San Diego, Texas, ranks fourth w ith 6.5 percent; and Farmers State 

Bank, Orange Grove, Texas, ranks fifth w ith 4.7 percent. (Mr. Erck controls 

approximately 49.0 percent of the outstanding capital stock of this bank as 

well as m ajority control of the tw o banks sought to be merged.)

As of December 31, 1969, just prior to Mr. Erck's purchase of m ajority 

control of the merging banks, the same five banks were the only banks competing in the Alice market. Their market shares in terms o f total commercial 

bank deposits were: Alice National Bank, 46.1 percent; First National, 18.6 

percent; Bank of South Texas, 17.9 percent; First State Bank of San Diego,

13.0 percent; and Farmers State Bank, 4.5 percent. Thus, prior to their affiliation, the merging banks were direct and significant competitors in Alice, where 

they represented tw o of the three banks in town, and they were also direct and 

significant competitors w ithin the relevant geographic market where they and 

the Farmers State Bank, Orange Grove, represented three of only five competing banks.

A t the time of affiliation, the Alice market had approximately two-thirds 

the total deposits that are currently held by commercial banks in the market. 

The total of such deposits was $50.0 m illion as of January 1, 1970, as compared to $79.2 m illion as of June 30, 1974. While the population and aggregate 

deposits of the relevant geographic market in and around Alice were quite 

small in 1970 and still are, compared to the markets involved in judicially

* * A stated in te n tio n n o t to d isa ffilia te even if the proposed merger is denied is, o f course, 

self-serving and subject to change.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTION DENIED BY THE CORPORATION 171

decided bank merger cases, the Alice banking market appears to constitute an 

economically significant "section of the country" whose center is an incorporated city of more than 20,000 persons.***

That being so, it would appear that the merger o f the two banks in 1970 

would have been a clear violation of Section 7 of the Clayton A ct under the 

criteria established in United States v. Phillipsburg National Bank, 399 U. S. 

350 (1970). In that case, seven commercial banks were found to be competitors in the relevant geographic market. Here, there are five. The banks there 

seeking to merge ranked third and fifth largest among the seven, the larger 

having 13.7 percent of the total commercial bank deposits in the market, and 

the tw o banks together having 23.4 percent of such deposits. Here, First National alone had 18.6 percent and Bank of South Texas, 17.9 percent of the 

total commercial bank deposits in the market in 1970, ranking second and 

third in this respect. There, the largest bank operating in the market held a 

much larger share of the total commercial bank deposits in the market (41.4 

percent) than either bank proposed to be merged and a much larger share of 

such deposits than the bank resulting from their merger would have held. Here, 

Alice National Bank held a much larger share in the market (46.1 percent) than 

either First National or Bank of South Texas although the bank resulting from 

their proposed merger would have been only slightly smaller than the largest 

bank. There, the merger increased the share of deposits held by the three 

largest banks in the market from 70 percent to 80 percent. Here, the comparable percentage in 1970— even counting Farmers State Bank, Orange Grove, 

as an independent bank— would have increased from 83 percent to 96 percent.

N ot only was substantial existing com petition between Bank of South Texas 

and First National eliminated by Mr. Erck's acquisition of common control in 

1970, a significant potential for increased com petition between them in the 

future was also eliminated. Such future com petition would have developed 

regardless of whether the bank not acquired by Mr. Erck had remained independent or had been acquired by one o f the growing number of m ultibank 

holding companies operating in Texas.

The Corporation finds accordingly that the effect o f the 1970 acquisition of 

stock control was "substantially to lessen com petition" in the Alice banking 

market and that the proposed merger would give permanence to that anticompetitive result in frustration o f the Bank Merger Act.

Convenience and Needs o f the Community to be Served. The proposed 

merger would adversely affect the convenience and needs of the com m unity 

being served by First National. Under Texas law, First National's office would 

have to be closed and discontinued. This office, along w ith the office o f Alice 

National Bank, is located in Alice's business district, a deteriorating area w ith 

an increasing number of vacant buildings. While the continuance of First National's office may not reverse this trend, its closing w ill surely serve to accelerate it. Arguments have been made that the closing of this office w ill make Alice 

more attractive fo r de novo entry. But outside banks today are likely to view 

the office of Bank of South Texas and First National as being component parts 

of one banking organization. Since no outside bank has attempted de novo

***Cf. United States v. County Nat'l Bank o f Bennington, 330 F. Supp. 155 (D. V t. 

1971), 339 F. Supp. 85 (D. V t. 1972).

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

entry since 1970, the Corporation finds no reason to believe that the proposed 

merger would enhance the prospects for de novo entry in the future. In its 

view, the disaffiliation of one of these banks subsequent to denial of the 

proposed merger and the acquisition o f that bank by a competing organization 

is at least an equal possibility w ith a healthier competitive result.

While the resulting bank's increased lending lim it might make it more competitive w ith Alice's largest bank, loan participations w ith Mr. Erck's out-ofarea banks can provide loans of the same size at the present time. The resulting 

bank, moreover, intends to offer no banking services that are not presently 

available at Bank of South Texas and First National. Considerations of convenience and need are, therefore, either neutral or negative and add no weight 

towards approval of the proposed merger.

Financial and Managerial Resources; Future Prospects. These factors are 

adequate w ith respect to both of the merging banks, as they were in 1970. 

They, too, add no decisive weight toward approval of a proposed merger under 

the competitive considerations here presented.

Conclusion. The application now before the Corporation presents the first 

opportunity for supervisory review of the anticompetitive effects of the 1970 

affiliation of Bank of South Texas and First National through Mr. Erck's 

purchase of common control. Since it is clear that a merger application submitted in 1970 would have been denied by the Corporation under guidelines 

similar to those enunciated in the Phillipsburg case, there being present no 

overriding banking factors or considerations of convenience and need, the Corporation has concluded that the present application should also be denied so as 

to encourage compliance w ith the standards of the Bank Merger A ct as determined in decided court cases.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
LEGISLATION AND REGULATIONS

PARTTHREE

v y

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
175

FEDERAL LEGISLATION - 1974

Depository Institutions Amendments of 1974. The Depository 

Institutions Amendments of 1974, Title I of Public Law 93-495, 

approved by the President on October 28, 1974, contain provisions 

significant to deposit insurance and insured banks. Effective 

November 27, 1974, the deposit insurance limit is increased to 

$100,000 for funds deposited in time and savings accounts in insured banks, or in federally insured savings and loan associations or 

credit unions, by any person having official custody of funds of the 

Federal Government or of the State where the financial institution 

is located, or of any political subdivision of that State. Federal 

financial regulatory agencies are given the authority to limit the 

aggregate amount of public funds deposited in any bank, savings 

and loan association, or credit union. This higher insurance lim it is 

designed to increase competition among financial institutions for 

the deposits of public units. Also effective on November 27, 1974, 

the ceiling on the insurance coverage afforded other depositors in 

federally insured banks, savings and loan associations, and credit 

unions is increased from $20,000 to $40,000.

The Depository Institutions Amendments of 1974 also provide 

that the Federal agencies regulating financial institutions, and under 

the authority of the Securities Exchange Act of 1934 (15 U.S.C. 

§§ 78a et seq.) also the securities issued by such institutions, must 

adopt regulations substantially similar to those prescribed by the 

Securities and Exchange Commission under the statutory provisions 

in question, unless a financial regulatory agency finds that such 

regulations would not be necessary or appropriate in the public 

interest or for protection of investors and publishes such findings in 

the Federal Register.

In addition, a moratorium is imposed (until June 30, 1976) on 

the conversion of insured mutual savings banks to the stock form of 

organization, unless the responsible Federal bank regulatory agency 

determines that the conversion is required to maintain the safety, 

soundness, and stability of an insured bank. A similar moratorium 

applies to conversions of mutual savings and loan associations, except for a limited number of test cases.

The authority of the Federal financial regulatory agencies under 

section 7 of the Act of September 21, 1966, (Public Law 89-597) 

to set flexible interest or dividend rate maximums on the time and 

savings deposits of financial institutions is extended until December 

31, 1975. This authority was due to expire on December 31, 1974.

The Depository Institutions Amendments of 1974 also granted 

the Board of Governors of the Federal Reserve System authority to 

issue cease-and-desist orders against bank holding companies and 

nonbank subsidiaries engaging in unsafe or unsound practices.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

National Commission on Electronic Fund Transfers. Title II of 

Public Law 93-495 established the National Commission on Electronic Fund Transfers. The Commission is composed of 26 members, including the heads of 12 Federal agencies having an interest 

in this subject and 14 members appointed by the President— 2 from 

State financial regulatory agencies, 7 from various segments of the 

business community, and 5 from the public at large. The Commission is directed to conduct a thorough study and investigation of 

electronic fund transfer systems and to recommend appropriate 

administrative action and legislation. The Commission's final report 

must be made within 2 years.

The Fair Credit Billing Act. The Fair Credit Billing Act, Title III 

of Public Law 93-495, which becomes effective 1 year after the 

date of its enactment, amends the Truth in Lending Act (15 U.S.C. 

§ § 1601 -1665) to prohibit certain unfair and inaccurate billing and 

credit card practices. The Fair Credit Billing Act will prevent banks 

and other financial institutions which issue credit cards from o ffsetting an unpaid credit card bill against a customer's checking or 

savings account unless a court order has been obtained. Issuers of 

credit cards will also be subject to the same claims that cardholders 

may assert against the sellers of the merchandise, provided that the 

transaction exceeded $50 and occurred in the State where the customer lives or within 100 miles of his residence.

Equal Credit Opportunity Act. The Equal Credit Opportunity 

Act, Title V of Public Law 93-495, amends the Consumer Credit 

Protection Act (Public Law 90-321) to prohibit any creditor from 

discriminating against any applicant for credit on the basis of sex or 

marital status. The Board of Governors of the Federal Reserve 

System is instructed to prescribe regulations to carry out the purposes of the new legislation, which becomes effective 1 year after 

the date of its enactment. Compliance by insured banks will be 

enforced by the Federal bank regulatory agencies under section 8 of 

the Federal Deposit Insurance Act (12 U.S.C. § 1818). The Equal 

Credit Opportunity Act provides for civil liability equal to actual 

damages plus punitive damages up to $10,000 in an individual action. In a class action, punitive damages are limited to $100,000 or 

1 percent of the creditor's net worth, whichever is smaller.

Abandoned Traveler's Checks and Money Orders. Title VI of 

Public Law 93-495 states that the proceeds of unclaimed traveler's 

checks and money orders may escheat to the State where they were 

purchased, if that State has the power to escheat such sums under 

its own laws. If the State of purchase is unknown, or if that State 

does not have the power to escheat such funds under its own laws, 

the State where the issuer's principal place of business is located is 

entitled to escheat the funds if so empowered by its laws, until

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
FEDERAL LE G IS LA TIO N -1974 177

another State demonstrates that it is the State of purchase or until 

the State of purchase obtains the power to escheat the unclaimed 

funds under its laws.

Public Law 93-501. Title I of Public Law 93-501, approved on 

October 29, 1974, confers on the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, 

and the Federal Home Loan Bank Board the discretionary authority 

to regulate interest rates payable on debt obligations issued by affiliates of insured financial institutions, regardless of whether the 

proceeds of the debt obligations are used for the benefit of the 

financial institution. The extension of authority is in response to 

several large issues of variable rate notes by bank holding companies 

at rates of interest generally higher than the rates which can be 

legally paid by banks and th rift institutions.

Title II of Public Law 93-501 amends the National Bank Act, the 

Federal Deposit Insurance Act, and the National Housing Act to 

permit all federally insured banks and savings and loan institutions, 

notwithstanding any State law to the contrary, to charge interest on 

business or agricultural loans in the amount of $25,000 or more at a 

rate of not more than 5 percent in excess of the discount rate on 

90-day commercial paper in effect at the Federal Reserve bank in 

the Federal Reserve district where the institution is located. This 

exemption from State usury laws does not apply to loans made 

after July 1, 1977, or after the enactment of any State law which 

prohibits the charging of interest at the rates provided in the 

amendments. Public Law 93-501 also exempts the borrowings and 

bank deposit obligations of any insured bank or th rift institution, 

or of affiliates of these institutions, from State usury laws until July 

1, 1977, or the date of any overriding State law, whichever is 

earlier.

Real Estate Settlement Procedures Act of 1974. Approved by the 

President on December 23, 1974, the Real Estate Settlement Procedures Act of 1974 (Public Law 93-533) revises settlement cost 

practices connected with federally related mortgages on residential 

property. The new legislation is intended to provide that consumers 

receive greater and more timely information on the cost of settlement and to protect them from unnecessarily high settlement 

charges. It is provided, for example, that no financial institution, 

including uninsured mutual savings banks and cooperative banks, 

may make a mortgage loan to an agent or other, person acting in a 

fiduciary capacity without the prior condition that the identity of 

the person receiving the beneficial interest of the loan be disclosed 

to the lender. The details of any such transaction must be reported, 

upon request, to the Federal Deposit Insurance Corporation and the

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Federal Home Loan Bank Board. These two agencies are empowered to exempt certain classes or types of transactions from the 

disclosure requirement.

RULES AND REGULATIONS AND STATEMENTS 

OF GENERAL POLICY

Loans in Areas Having Special Flood Hazards. The Flood Disaster 

Protection Act of 1973 (Public Law 93-123) mandated that the 

Federal agencies supervising or insuring banks, savings and loan 

associations, and other financial institutions issue regulations, pursuant to sections 102(b) and 202(b) of the Act, to restrict loans in 

areas having special flood hazards. Accordingly, effective March 2, 

1974, the Corporation adopted a new regulation (12 C.F.R. part 

339) to implement the Act. The regulation generally requires that 

on or after March 2, 1974, no insured State nonmember bank shall 

make any loan secured by improved real estate or a mobile home 

located in an area that has been identified by the Secretary of 

Housing and Urban Development as an area having special flood 

hazards and in which 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 are 

covered for the term of the loan by adequate flood insurance. In 

addition, on and after July 1, 1975, insured State nonmember 

banks will be prohibited from making loans secured by improved 

real estate or mobile homes in designated flood hazard areas unless 

the community in which the area is located is then participating in 

the National Flood Insurance Program.

On September 22, 1974, the Corporation added a new section to 

its flood hazard regulations (12 C.F.R. § 339.5), as required by 

section 816(a) of the Housing and Community Development Act of 

1974 (Public Law 93-383). The new section provides that each 

insured State nonmember bank, before making, increasing, extending, or renewing any loan secured by improved real estate or a 

mobile home located in an area designated as having special flood 

hazards, must notify the borrower in writing that the property 

securing the loan is in an area so designated. In lieu of such notification, the bank may receive written assurances from the seller or 

lessor that the seller or lessor has notified the buyer that the property is located in a designated flood hazard area.

Delegation of Authority to Washington Staff and Regional Directors. Effective May 8, 1974, the Corporation amended its regulations to further delegate the authority of the Board of Directors to 

act on certain applications. Section 303.11 of the Corporation's

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
RULES AND REGULATIONS OF THE CORPORATION 179

regulations was amended to delegate to the Director of the Division 

of Bank Supervision or the Regional Directors the additional 

authority to approve but not to deny:

(1) applications by State member banks to retain their status as insured banks upon withdrawal from membership in the 

Federal Reserve System;

(2) applications for approval of "phantom" bank mergers; 

and

(3) applications for deposit insurance filed by new banks 

which are formed in connection with "phantom" bank mergers.

It is the understanding of the Board of Directors that applications 

under (1) above will be handled, wherever possible, at the Regional 

Office level.

Section 303.12 of the Corporation's regulations (12 C.F.R. § 

303.12) precludes the delegation of authority to the Director of the 

Division of Bank Supervision and the Regional Directors, where, in 

the case of branch applications, certain prerequisites are not met. 

The Regional Directors are delegated authority under existing regulations to approve branch applications by commercial banks only 

where, for example, the applicant's adjusted capital and reserves, 

including written commitments for additional capital funds, constitute at least 7.5 percent of its adjusted gross assets. Section 

303.12 was amended to authorize the Director of the Division of 

Bank Supervision, but not the Regional Directors, to approve applications of commercial banks with adjusted capital-asset ratios 

below 7.5 percent where he is satisfied that the applicant's capital is 

adequate when viewed in light of all the circumstances which bear 

on such a determination. The amendments also eliminate the prerequisite that the branch applicant's aggregate fixed asset investment, including its investment in the proposed branch, meet a 

minimum percentage of its adjusted capital and reserves. This prerequisite is replaced with a "reasonableness" requirement, which is 

met if the applicant's aggregate fixed asset investment, including its 

direct and indirect investment in the proposed branch, is determined to be reasonable relative to the applicant's earnings capacity 

and other pertinent bases of consideration.

Finally, the Board of Directors amended section 303.13 of the 

Corporation's regulations, relating to other delegations of authority 

(12 C.F.R. § 303.13). The amendment delegates authority to the 

Director of the Division of Bank Supervision and, where confirmed 

in writing by the Director, to the Regional Directors to furnish 

reports to other Federal banking agencies on the competitive factors involved in "phantom" bank mergers required to be approved 

Digitized 

by those agencies.

for FRASER 

http://fraser.stlouisfed.org/ 

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

"Standby" Letters of Credit. On September 15, 1974, new regulations concerning certain letter of credit practices of insured State 

nonmember banks became effective. Section 332.1 of the Corporation's regulations (12 C.F.R. § 332.1) was amended to allow any 

insured State nonmember bank to issue letters of credit in the usual 

course of its banking business without regard to the limitations 

prescribed by that section. Section 332.1 enumerates certain 

powers inconsistent with the purposes of the Federal Deposit Insurance Act. In addition, the Corporation adopted a new regulation 

(12 C.F.R. part 337) dealing with unsafe and unsound banking 

practices. The immediate purpose of the new regulation is to establish guidelines for handling certain kinds of letters of credit which 

may have adverse effects on the safety and soundness of the issuing 

bank and which the Board of Directors has determined may involve 

practices which would warrant the enforcement procedures set 

forth in subsection 8(b) of the Federal Deposit Insurance Act (12 

U.S.C. § 1818(b)). The regulation requires that all "standby" letters of credit, as defined therein, issued by an insured State nonmember bank be combined with all its loans for the purpose of 

applying any legal limitation on loans, unless the letter of credit is 

prepaid, or unless the bank segregates an amount equal to its maximum potential liability on the letter of credit in a deposit account 

clearly earmarked for that purpose. "Standby" letters of credit are 

defined to include letters of credit which guarantee the payment of 

a money obligation by an account party or which condition payment on the default of an account party.

Deposit Insurance Coverage. Public Law 93-495, signed into law 

by the President on October 28, 1974, increased the maximum 

deposit insurance from $20,000 to $40,000 and also provided additional insurance coverage of up to $100,000 for certain time and 

savings deposits of official custodians of public funds. On November 20, 1974, the Corporation amended parts 306, 308, 328, 330, 

and 331 of its regulations (12 C.F.R. parts 306, 308, 328, 330, and 

331) to reflect the increase in the deposit insurance ceiling and to 

clarify the deposit insurance coverage of public funds. Under the 

new regulations, each official custodian of funds of the United 

States is entitled to insurance coverage of up to $100,000 for any 

such funds deposited in time and savings accounts in an insured 

bank and additional coverage of up to $40,000 for any such funds 

deposited in demand accounts in the same insured bank. Official 

custodians of States or their political subdivisions who deposit public funds in time and savings accounts in an insured bank in the 

same State are insured up to $100,000 and up to $40,000 for any 

such funds deposited in demand accounts in the same insured bank. 

All such funds deposited outside of the State are insured only up to

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
RULES AND REGULATIONS OF THE CORPORATION 181

$40,000 in the aggregate, regardless of whether deposited in 

demand, time, or savings accounts.

Interest Rate Regulations. On November 27, 1974, the Board of 

Directors, after consultation with the Board of Governors of the 

Federal Reserve System and the Federal Home Loan Bank Board as 

required by law, amended sections 329.1 329.6, and 329.7 of 

the Corporation's regulations (12 C.F.R. §§ 329.1, 329.6, and 

329.7), which restrict the amount of interest insured State nonmember banks can pay on deposits. The amendments are designed 

to reflect the changes made by Public Law 93-495, approved on 

October 28, 1974, which, among other things, allowed insurance 

coverage of up to $100,000 for certain time and savings deposits of 

public funds. The new amendments allow all depositors of public 

funds to hold, for the first time, savings deposits in commercial 

banks, subject to existing interest rate limitations. In addition, a 

special ceiling rate for interest payable on time deposits of public 

funds deposited in both commercial and mutual savings banks, regardless of maturity, has been established at the highest rate which 

any insured nonmember bank (including a mutual savings bank) 

may pay on any time deposit under $100,000. The Board of Directors, after consultation with the Board of Governors of the Federal 

Reserve System and the Federal Home Loan Bank Board, further 

amended its interest rate regulations, effective December 23, 1974, 

specifying a new ceiling for interest payable on time deposits with a 

minimum maturity of 6 years and in a minimum amount of $1,000 

to be 7 3/4 percent per annum for mutual savings banks and 7 1/2 

percent per annum for commercial banks.

Policy Statement on Gold. Public Law 93-373, effective on December 31, 1974, removed the 40-year-old ban on the ownership of 

monetary gold by individuals, including banks. On December 9, 

1974, the Corporation issued a statement of policy on gold addressed to insured nonmember banks. The statement instructs each 

insured nonmember bank which intends to deal in gold to notify 

the Corporation and warns banks of the potential risks of dealing in 

gold with respect to each capacity in which banks are likely to hold 

gold. Those banks which deal in gold for their own account should 

be aware of adverse fluctuations in market value and that gold is a 

non-earning asset. Those banks which sell gold to customers on a 

consignment basis should be aware of problems relating to the 

physical security of the gold, liability under repurchase agreements, 

bogus gold, and the necessity of weighing and assaying any gold 

which comes into the bank's possession. Banks which engage in the 

safekeeping of gold owned by their customers should be concerned 

with the adequacy of their security arrangements. Any receipt or 

advertisement issued in connection with the bank's safekeeping

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

activities should state that the gold is not a deposit insured by the 

FDIC.

The policy statement on gold further advises banks that contracts, including deposit contracts, which are payable in gold and 

where the parties to the contract view the gold as a medium of 

discharging the debt, rather than as a commodity to be traded, may 

be unenforceable under the so-called Gold Clause Resolution of 

1933 (31 U.S.C. § 463). Those banks which hold gold as collateral 

for loans should be aware of the valuation and security problems 

involved and that loans made for the purchase of gold are speculative and nonproductive, unless made for commercial or industrial 

purposes.

Similar policy statements were issued by the other Federal bank 

regulatory agencies with respect to the banks under their jurisdiction.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
r

STATISTICS OF BANKS 

AND DEPOSIT INSURANCE 

PART FOUR

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Table 101. Changes in number and classification of banks and branches in the United States (States and 

other areas) during 1974

Table 102. Changes in number of commercial banks and branches in the United States (States and other 

areas) during 1974, by State 

Table 103. Number of banking offices in the United States (States and other areas), December 31, 1974 

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, 1974

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, 1974

Banks grouped by deposit size and State

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Banks: Commercial banks include the fo llo w in g categories of banking 

in s titu tio n s :

N ational banks:

Inco rpo rate d State banks, tru s t companies, and bank and tru st com ­

panies regularly engaged in the business o f receiving deposits, w hether demand or tim e, except m utual savings banks;

S tock savings banks, in cluding guaranty savings banks in New Hampshire;

Industrial and M orris Plan banks w hich operate under general banking 

codes, or are spe cifically au thorize d by law to accept deposits and in practice 

do so, or the obligatio ns o f w hich are regarded as deposits fo r deposit insurance;

Special types o f banks o f deposit; regulated certificated banks, and a 

savings and loan com pany operating under Superior C ourt charter in 

G eorgia; governm ent-operated banks in N orth Dakota and Puerto R ico; a 

cooperative bank, usually classified as a cre dit union, operating under a 

special charter in New Ham pshire; a savings in s titu tio n , known as a "tru s t 

c o m p a n y ," operating under special cha rter in Texas; the Savings Banks T rust 

C om pany in New Y o rk ; th e Savings Bank and T rust Com pany N orthw est 

W ashington in th e State o f W ashington; and branches o f foreign banks engaged in a general deposit business in Illino is, Massachusetts, New Y o rk, 

Oregon, W ashington, Puerto R ico, and V irg in Islands;

Private banks under State supervision, and such oth er private banks as are 

re ported by reliable u n o ffic ia l sources to be engaged in deposit banking.

Nondeposit trust companies include in stitu tio n s operating under tru st 

com pany charters w hich are n o t regularly engaged in deposit banking bu t are 

engaged in fid u c ia ry business o th e r than tha t incidental to real estate title or 

investm ent activities.

Mutual savings banks include all banks operating under State banking 

codes a p plying to m utual savings banks.

Institutions excluded. In s titu tio n s in the fo llo w in g categories are excluded, though such in s titu tio n s m ay pe rform many of the same fun ctio ns as 

com m ercial and savings banks:

Banks w hich have suspended operations or have ceased to accept new 

deposits and are proceeding to liq u id a te th e ir assets and pay o ff existing 

deposits;

B uild in g and loan associations, savings and loan associations, cre dit 

unions, personal loan com panies, and sim ilar in stitu tio n s, chartered under 

laws ap plying to such in stitu tio n s or under general incorpora tio n laws, regardless of w hether such in stitu tio n s are authorized to accept deposits fro m 

the p u blic or fro m th e ir members and regardless of w hether such in stitu tio n s 

are called "b a n ks” (a few in s titu tio n s accepting deposits under powers 

granted in special charters are included );

M orris Plan com panies, industrial banks, loan and investm ent companies, 

and sim ilar in stitu tio n s except those m entioned in the description of in s titu ­

tions included;

Branches o f foreign banks and private banks w hich confine the ir business 

to foreign exchange dealings and do no t receive "d e p o s its " as th a t term is 

com m only understood;

In stitu tio n s chartered under banking or tru st com pany laws, b u t operating as investm ent o r title insurance companies and no t engaged in deposit 

banking or fid u c ia ry activities;

Federal Reserve Banks and oth er banks, such as the Federal Home Loan 

Banks and the Savings and Loan Bank o f the State of New Y o rk, w hich 

operate as rediscount banks and do n o t accept deposits except fro m financial 

institu tio n s.

Branches: Branches include all offices o f a bank oth er than its head 

office, at w hich deposits are received, checks paid, or money lent. Banking 

facilities separate fro m a banking house, banking facilities at governm ent 

establishm ents, offices, agencies, paying or receiving stations, drive-in fa c ilities, and other facilities operated fo r lim ite d purposes are defined as 

branches under the Federal D eposit Insurance A ct, Section 3(o), regardless 

o f the fact th a t in certain States, including several w hich p ro h ib it the operatio n o f branches, such lim ite d facilities are not considered branches w ith in 

the meaning o f State law.

NUMBER OF BANKS AND BRANCHES 185

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 101. CHANGES IN NUMBER AND CLASSIFICATION OF BANKS AND BRANCHES IN THE UNITED STATES

(STATES AND OTHER AREAS) DURING 1974

A ll banks Commercial banks and nondeposit tru s t companies M utual savings banks

Insured N oninsured

Type o f change

Total Insured

Noninsured Total

T otal

Members F.R. 

System

N o t

m em ­

bers

F.R.

System

Banks

of

deposit

N ondeposit

tru s t

com ­

panies1

T otal Insured

N oninsured

National State

A L L B A N K IN G O FFIC ES

Num ber o f offices, December 3 1 , 1 9 7 4 1......................................................................... 45,308 44,566 742 43,186 42,859 20,498 5,281 17,080 246 81 2,122 1,707 415

42,886 42,182 704 40,912 40,619 19,627 5,129 15,863 213 80 1,974 1,563 411

+2,422 +2,384 +38 +2,274 +2,240 +871 +152 +1,217 +33 +1 +148 +144 +4

O ffices o p e n e d ............................................................................................................ 2,730 2,679 51 2,540 2,494 1,090 281 1,123 40 6 190 185 5

Banks ...................................................................................................................... 408 365 43 407 364 97 35 232 37 6 1 1 0

Branches................................................................................................................. 2,322 2,314 8 2,133 2,130 993 246 891 3 0 189 184 5

O ffices closed.............................................................................................................. 308 301 7 272 266 134 44 88 3 3 36 35 1

Banks ...................................................................................................................... 123 119 4 120 116 43 14 59 1 3 3 3 0

B ranches................................................................................................................. 185 182 3 152 150 91 30 29 2 0 33 32 1

Changes in classification ........................................................................................ 0 +6 - 6 +6 +12 - 8 5 - 8 5 +182 - 4 - 2 - 6 - 6 0

Am ong b a n k s ....................................................................................................... 0 +6 - 6 0 +6 - 5 - 2 5 +36 - 4 - 2 0 0 0

Am ong branches.................................................................................................. 0 0 0 +6 +6 - 8 0 - 6 0 +146 0 0 - 6 - 6 0

B A N K S

Num ber o f banks, December 3 1 ,1 9 7 4 ........................................................................... 14,961 14,550 411 14,481 14,230 4,710 1,072 8,448 179 72 480 320 160

N um ber o f banks, December 3 1 ,1 9 7 3 ........................................................................... 14,676 14,298 378 14,194 13,976 4,661 1,076 8,239 147 71 482 322 160

Net change during y e a r .................................................................................................. +285 +252 +33 +287 +254 +49 - 4 +209 +32 +1 - 2 - 2 0

Banks beginning o p e ra tio n ..................................................................................... 408 365 43 407 364 97 35 232 37 6 1 1 0

New b a n k s ............................................................................................................ 395 365 30 394 364 97 35 232 25 5 1 1 0

Banks added to co u n t2 ..................................................................................... 13 0 13 13 0 0 0 0 12 1 0 0 0

Banks ceasing o p e ra tio n .......................................................................................... 123 119 4 120 116 43 14 59 1 3 3 3 0

A bsorptions, consolidations, and m ergers.................................................. 120 119 1 117 116 43 14 59 0 1 3 3 0

O ther liq u id a tio n s ............................................................................................. 1 0 1 1 0 0 0 0 0 1 0 0 0

Banks deleted fro m c o u n t................................................................................ 2 0 2 2 0 0 0 0 1 1 0 0 0

Noninsured banks becom ing in s u re d ................................................................. 0 +6 - 6 0 +6 0 +1 +5 - 4 - 2 0 0 0

186 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
O ther changes in c la s s ific a tio n ............................................................................. 0 0 0 0 0 - 5 - 2 6 +31 0 0 0 0 0

N ational succeeding State bank...................................................................... 0 0 0 0 0 + 15 - 7 - 8 0 0 0 0 0

State succeeding national b a n k ...................................................................... 0 0 0 0 0 - 2 0 0 +20 0 0 0 0 0

A dm ission o f insured bank to F.R. S yste m ............................................... 0 0 0 0 0 0 +9 - 9 0 0 0 0 0

W ithdraw al fro m F.R. System w ith co ntinued 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 involving num ber in any class

Change in t i t l e ................................................................................................... 435 432 3 425 423 151 24 248 2 0 10 9 1

Change in lo c a tio n ............................................................................................ 32 32 0 32 32 14 0 18 0 0 0 0 0

Change in title and lo c a tio n .......................................................................... 17 16 1 17 16 8 2 6 0 1 0 0 0

Change in lo cation w ith in c i t y ...................................................................... 336 331 5 321 319 94 8 217 2 0 15 12 3

Change in corporate powers

Granted tru s t p o w e rs ....................................................................................... 88 88 0 87 87 0 0 87 0 0 1 1 0

BRAN C H ES

N um ber o f branches, December 3 1 ,1 9 7 4 1 ................................................................... 30,347 30,016 331 28,705 28,629 15,788 4,209 8,632 67 9 1,642 1,387 255

N um ber o f branches, December 31, 1 9 7 3 1 ................................................................... 28,210 27,884 326 26,718 26,643 14,966 4,053 7,624 66 9 1,492 1,241 251

Net change during y e a r ................................................................................................. +2,137 +2,132 +5 +1,987 +1,986 +822 +156 +1,008 +1 0 +150 +146 +4

Branches opened fo r b u s in e s s ............................................................................. 2,322 2,314 8 2,133 2,130 993 246 891 3 0 189 184 5

Absorbed bank converted to b ra n c h ............................................................ 106 106 0 106 106 57 10 39 0 0 0 0 0

Branch replacing head o ffice re lo c a te d ...................................................... 40 40 0 40 40 14 2 24 0 0 0 0 0

New branches...................................................................................................... 2,134 2,132 2 1,951 1,951 908 226 817 0 0 183 181 2

Branches an d /o r fa cilitie s added to c o u n t2 ............................................... 42 36 6 36 33 14 8 11 3 0 6 3 3

Branches d is c o n tin u e d ............................................................................................ 185 182 3 152 150 91 30 29 2 0 33 32 1

Facilities designated by T re a s u ry ................................................................. 4 3 1 4 4 1 0 2 1 0 0 0 0

Branches .............................................................................................................. 159 158 1 127 126 79 24 23 1 0 32 32 0

Branches a n d /o r fa cilitie s deleted fro m co u n t ....................................... 22 21 1 21 21 11 6 4 0 0 1 0 1

O ther changes in c la s s ific a tio n ............................................................................. 0 0 0 +6 +6 - 8 0 - 6 0 + 146 0 0 - 6 - 6 0

Branches changing class as a result o f c o n v e rs io n .................................. 0 0 0 0 0 - 1 9 0 +19 0 0 0 0 0

Branches transferred th rough absorption, consolidation, or merger . 0 0 0 +6 +6 - 6 1 +2 +65 0 0 - 6 - 6 0

Branches o f insured banks w ith d ra w in g fro m F.R. S ystem ................. 0 0 0 0 0 0 - 6 2 +62 0 0 0 0 0

Changes n o t involving num ber in any class

Changes in operating pow er o f branches.................................................... 2 2 0 2 2 1 0 1 0 0 0 0 0

Branches transferred th rough absorption, consolidation, or merger . 123 123 0 123 123 61 1 61 0 0 0 0 0

Changes in title , location, or name o f lo c a tio n ....................................... 652 651 1 652 620 338 77 205 0 1 31 31 0

1 1ncludes fa cilitie s established at request o f the Treasury or com m anding o ffice r of.governm ent installations, and also a few seasonal branches th a t were n ot in operation as o f December 31. 

2 Banks o r branches opened p rio r to 1974 b u t n o t included in count as o f December 3 1 ,1 9 7 3 .

NUMBER OF BANKS AND BRANCHES 187

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 102. CHANGES IN NUMBER OF COMMERCIAL BANKS AND BRANCHES IN THE UNITED STATES 

(STATES AND OTHER AREAS) DURING 1974, BY STATE

State

In operation Net change 

during 1974

Beginning operation in 1974 Ceasing operation in 1974

Dec. 31, 1974 Dec. 31, 1973 Banks Branches Banks Branches

Banks Branches Banks Branches Banks Branches New O ther New O ther A bsorptions O ther Branches Other

T otal U nited S ta te s .................... 14,481 28,705 14,194 26,718 +287 +1,987 394 13 1,987 152 117 3 127 25

50 States and D.C........................ 14,458 28,432 14,171 26,449 +287 +1,983 394 13 1,981 152 117 3 127 23

O ther areas ................................... 23 273 23 269 IMA +4 0 0 6 0 0 0 0 2

States

A la b a m a ........................................ 293 417 287 369 +6 +48 8 0 47 3 2 0 2 0

Alaska ............................................. 10 81 10 73 NA +8 0 0 8 0 0 0 0 0

A riz o n a ........................................... 25 425 22 405 +3 +20 3 1 22 0 0 1 2 0

Arkansas ........................................ 262 281 258 227 +4 +54 4 0 52 2 0 0 0 0

C a lifo rn ia ...................................... 198 3,490 185 3,391 +13 +99 19 0 117 7 6 0 24 1

C o lo ra d o ........................................ 324 50 302 42 +22 +8 11 12 8 0 0 1 0 0

C o n n e cticu t................................... 71 547 68 518 +3 +29 5 0 28 2 2 0 1 0

D elaw are....................................... 18 130 19 118 -1 +12 0 0 11 1 1 0 0 0

D istrict o f C o lu m b ia .................. 16 126 15 117 +1 +9 1 0 9 0 0 0 0 0

F lo r id a ........................................... 716 121 646 67 +70 +54 70 0 55 1 0 0 1 1

G e o rg ia ........................................... 447 656 436 558 +11 +98 13 0 97 4 2 0 2 1

Hawaii ........................................... 12 151 12 150 NA +1 0 0 1 0 0 0 0 0

Id ah o ................................................ 24 191 24 179 0 + 12 1 0 11 1 1 0 0 0

Illin o is ............................................. 1,204 194 1,172 175 +32 + 19 32 0 18 3 0 0 2 0

In d ia n a ........................................... 410 842 410 777 0 +65 3 0 65 3 3 0 2 1

Io w a ............................................... 665 385 670 369 - 5 +16 0 0 11 6 5 0 1 0

Kansas............................................. 613 127 612 89 +1 +38 2 0 37 1 1 0 0 0

K entucky ...................................... 342 471 342 424 NA +47 0 0 51 0 0 0 3 1

Louisiana........................................ 249 541 245 490 +4 +51 4 0 52 2 0 0 2 1

M a in e ............................................. 49 277 48 260 +1 +17 1 0 16 1 0 0 0 0

M a ryla n d ........................................ 114 703 112 643 +2 +60 5 0 50 10 3 0 0 0

M assachusetts......................... 152 885 153 853 - 1 +32 2 0 38 3 3 0 7 2

M ichigan ......................................... 347 1,480 340 1,400 +7 +80 11 0 86 4 4 0 4 6

M in n e s o ta ...................................... 745 32 740 24 +5 +8 5 0 8 0 0 0 0 0

M ississippi...................................... 181 503 181 449 0 +54 8 0 45 9 8 0 0 0

Missouri ........................................ 700 261 687 203 + 13 +58 14 0 59 4 1 0 5 0

M o n ta n a ........................................ 154 14 151 12 +3 +2 3 0 2 0 0 0 0 0

N ebraska........................................ 453 83 449 56 +4 +27 5 0 28 0 1 0 1 0

N e v a d a ........................................... 8 105 8 96 NA +9 0 0 9 0 0 0 0 0

New H am pshire............................ 82 99 82 90 0 +9 1 0 8 1 1 0 0 0

FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
New J e rs e y ................................... 218 1,336 222 1,250 - 4 +86

New M e x ic o ................................. 77 189 74 177 +3 + 12

New Y o r k ...................................... 305 3,090 304 2,879 +1 +211

N o rth C a ro lin a ............................ 92 1,547 90 1,444 +2 +103

N o rth D a k o ta .............................. 171 80 170 74 +1 +6

O h io ................................................ 498 1,613 498 1,525 0 +88

O k la h o m a ..................................... 460 96 452 91 +8 +5

O re g o n ........................................... 49 420 46 401 +3 +19

P en n sylva n ia ................................. 406 2,193 422 2,061 - 1 6 +132

Rhode Isla n d ................................. 16 214 16 207 NA +7

S outh C a ro lin a ............................ 91 581 91 548 0 +33

S outh D akota .............................. 158 115 159 108 - 1 +7

T ennessee...................................... 337 723 321 658 +16 +65

Texas ............................................. 1,313 123 1,266 110 +47 +13

U ta h ................................................ 55 186 54 171 +1 +15

V e rm o n t........................................ 34 131 39 109 - 5 +22

V irg in ia ........................................... 288 1,112 271 1,045 +17 +67

W a sh in g to n ................................... 93 661 88 640 +5 +21

West V irg in ia ................................. 214 26 210 15 +4 +11

W is c o n s in ...................................... 625 326 621 310 +4 +16

W yo m in g ........................................ 74 2 71 2 +3 NA

O ther areas

Pacific Is la n d s .............................. 1 28 1 27 NA +1

Panama Canal Z o n e .................... 0 2 0 2 0 NA

P uerto R ic o ................................... 14 214 14 210 NA +4

V irg in Is la n d s .............................. 8 29 8 30 IMA - 1

N A — No a c tivity

11 0 73 16 14 1 1 2

3 0 13 0 0 0 1 0

13 0 214 12 12 0 13 2

6 0 109 5 4 0 9 2

1 0 6 1 0 0 1 0

6 0 90 6 6 0 7 1

8 0 4 1 0 0 0 0

3 0 19 0 0 0 0 0

1 0 130 17 17 0 14 1

0 0 7 0 0 0 0 0

4 0 34 4 4 0 4 1

0 0 5 2 1 0 0 0

16 0 66 2 0 0 3 0

47 0 12 1 0 0 0 0

3 0 13 2 2 0 0 0

0 0 17 5 5 0 0 0

20 0 73 5 3 0 11 0

7 0 20 3 2 0 2 0

4 0 11 0 0 0 0 0

7 0 16 2 3 0 2 0

3 0 0 0 0 0 0 0

0 0 2 0 0 0 0 1

0 0 0 0 0 0 0 0

0 0 4 0 0 0 0 0

0 0 0 0 0 0 0 1

NUMBER OF BANKS AND BRANCHES 189

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. N U M B E R OF B A N K IN G O FFIC ES IN TH E U N ITE D STATES (STATES A N D OTHER A R E A S ), DECEM BER 31, 1974

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

Noninsured T otal

Insured Noninsured

Total Insured

N oninsured

A ll

banks

o f

deposit

Com ­

m ercial

banks

o f

deposit

M utual

savings

banks

Total

Members F.R. 

System

N onmembers

F.R.

System

Banks 

o f deposit2

N ondeposit

tru st

com ­

panies9 National State

United S ta te s -a ll o ffic e s ............... 45,308 44,566 742 43,186 42,859 20,498 5,281 17,080 246 81 2,122 1,707 415 98.5 99.4 80.4

Banks ............................................. 14,961 14,550 411 14,481 14,230 4,710 1,072 8,448 179 72 480 320 160 97.7 98.8 66.7

Unit banks.............................. 9,421 9,130 291 9,295 9,068 2,720 584 5,764 160 67 126 62 64 97.6 98.3 49.2

Banks operating branches . 5,540 5,420 120 5,186 5,162 1,990 488 2,684 19 5 354 258 96 97.9 99.6 72.9

Branches ........................................ 30,347 30,016 331 28,705 28,629 15,788 4,209 8,632 67 9 1,642 1,387 255 98.9 99.8 84.5

50 States & D .C .-a ll o ffic e s .......... 45,011 44,308 703 42,890 42,602 20,437 5,281 16,884 207 81 2,121 1,706 415 98.6 99.5 80.4

Banks ............................................. 14,937 14,537 400 14,458 14,218 4,708 1,072 8,438 168 72 479 319 160 97.8 98.8 66.6

Unit Banks.............................. 9,411 9,127 284 9,286 9,066 2,719 584 5,763 153 67 125 61 64 97.7 98.3 48.8

Banks operating branches . 5,526 5,410 116 5,172 5,152 1,989 488 2,675 15 5 354 258 96 98.0 99.7 72.9

Branches ........................................ 30,074 29,771 303 28,432 28,384 15,729 4,209 8,446 39 9 1,642 1,387 255 99.0 99.9 84.5

O ther are a s-a ll o ffic e s ..................... 297 258 39 296 257 61 0 196 39 0 1 1 0 86.9 86.8 100.0

Banks ............................................. 24 13 11 23 12 2 0 10 11 0 1 1 0 54.2 52.2 100.0

Unit banks.............................. 10 3 7 9 2 7 0 7 7 0 7 7 0 30.0 22.2 100.0

Banks operating branches . 14 10 4 14 10 7 0 9 4 0 0 0 0 71.4 71.4 0.0

Branches ........................................ 273 245 28 273 245 59 0 186 28 0 0 0 0 89.7 89.7 0.0

State

A la b a m a -a ll o ffic e s ......................... 710 710 0 710 710 364 39 307 0 0 0 0 0 100.0 100.0 0.0

Banks ............................................. 293 293 0 293 293 93 19 181 0 0 0 0 0 100.0 100.0 0.0

Unit banks.............................. 163 163 0 163 163 35 12 116 0 0 0 0 0 100.0 100.0 0.0

Banks operating branches . 130 130 0 130 130 58 7 65 0 0 0 0 0 100.0 100.0 0.0

Branches ........................................ 417 417 0 417 417 271 20 126 0 0 0 0 0 100.0 100.0 0.0

A la s k a -a ll o ffic e s .............................. 94 94 0 91 91 75 0 16 0 0 3 3 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

Unit banks.............................. 2 2 0 1 1 0 0 1 0 0 7 7 0 100.0 100.0 100.0

Banks operating branches . 10 10 0 9 5 0 4 0 0 7 7 0 100.0 100.0 100.0

Branches ........................................ 82 82 0 81 ,81 70 0 11 0 0 1 1 0 100.0 100.0 100.0

A riz o n a -a ll offices ......................... 450 442 8 450 442 269 27 146 0 8 0 0 0 100.0 100.0 0.0

Banks ............................................. 25 17 8 25 17 3 1 13 0 8 0 0 0 100.0 100.0 0.0

Unit banks.............................. 15 7 8 15 7 7 0 6 0 8 0 0 0 100.0 100.0 0.0

Banks operating branches . 10 10 0 10 10 2 1 7 0 0 0 0 0 100.0 100.0 0.0

Branches ........................................ 425 425 0 425 425 266 26 133 0 0 0 0 0 100.0 100.0 0.0

190 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
A rka nsa s-a ll o ffic e s ......................... 543 539 4 543 539 219 26

Banks ............................................. 262 258 4 262 258 74 9

Unit banks.............................. 132 128 4 132 128 20 1

Banks operating branches . 130 130 0 130 130 54 8

B ra n ch e s........................................ 281 281 0 281 281 145 17

C a lifo rn ia -a ll o ffic e s ....................... 3,688 3,670 18 3,688 3,670 2,731 326

Banks ............................................. 198 186 12 198 186 55 8

Unit banks.............................. 67 58 9 67 58 10 0

Banks operating branches . 131 128 3 131 128 45 8

Branches ........................................ 3,490 3,484 6 3,490 3,484 2,676 318

C o lo ra d o -a ll offices ....................... 374 313 61 374 313 154 20

Banks ............................................. 324 263 61 324 263 127 17

Unit banks ............................ 279 218 61 279 218 102 15

Banks operating branches . 45 45 0 45 45 25 2

Branches ........................................ 50 50 0 50 50 27 3

C o n n e c tic u t-a ll o ffic e s .................. 913- 912 1 618 617 275 82

B a n k s ............................................. 139 138 1 71 70 24 2

Unit banks.............................. 33 32 1 19 18 3 1

Banks operating branches . 106 106 0 52 52 21 1

B ra n ch e s......................................... 774 774 0 547 547 251 80

D e la w a re -a ll o ffices ....................... 172 171 1 148 147 9 0

Banks ............................................. 20 19 1 18 17 5 0

Unit banks.............................. 9 8 1 9 8 3 0

Banks operating branches . 11 11 0 9 9 2 0

Branches ........................................ 152 152 0 130 130 4 0

D .C .-a ll o f f ic e s ................................. 142 142 0 142 142 100 30

Banks ............................................. 16 16 0 16 16 13 1

Unit banks.............................. 2 2 0 2 2 2 0

Banks operating branches . 14 14 0 14 14 11 1

Branches ........................................ 126 126 0 126 126 87 29

F lo rid a -a ll o ffic e s ............................ 837 833 4 837 833 318 35

B a n k s ............................................. 716 712 4 716 712 282 33

Unit banks.............................. 602 598 4 602 598 247 31

Banks operating branches . 114 114 0 114 114 35 2

Branches ........................................ 121 121 0 121 121 36 2

G e o rg ia -a ll o ffic e s ............................ 1,103 1,099 4 1,103 1,099 382 84

B a n k s ............................................. 447 443 4 447 443 64 9

Unit banks.............................. 242 238 4 242 238 17 2

Banks operating branches . 205 205 0 205 205 47 7

B ra n ch e s........................................ 656 656 0 656 656 318 75

H a w a ii-a ll offices ............................ 163 156 7 163 156 12 0

Banks ............................................. 12 8 4 12 8 2 0

Unit banks.............................. 3 7 2 3 1 1 0

Banks operating branches . 9 7 2 9 7 1 0

Branches ........................................ 151 148 3 151 148 10 0

294 1 3 0 0 0 99.8 99.8 0.0

175 1 3 0 0 0 99.6 99.6 0.0

107 1 3 0 0 0 99.2 99.2 0.0

68 0 0 0 0 0 100.0 100.0 0.0

119 0 0 0 0 0 100.0 100.0 0.0

613 0 18 0 0 0 100.0 100.0 0.0

123 0 12 0 0 0 100.0 100.0 0.0

48 0 9 0 0 0 100.0 100.0 0.0

75 0 3 0 0 0 100.0 100.0 0.0

490 0 6 0 0 0 100.0 100.0 0.0

139 61 0 0 0 0 83.7 83.7 0.0

119 61 0 0 0 0 81.2 81.2 0.0

101 61 0 0 0 0 78.1 78.1 0.0

18 0 0 0 0 0 100.0 100.0 0.0

20 0 0 0 0 0 100.0 100.0 0.0

260 1 0 295 295 0 99.9 99.8 100.0

44 1 0 68 68 0 99.3 98.6 100.0

14 1 0 14 14 0 97.0 94.7 100.0

30 0 0 54 54 0 100.0 100.0 100.0

216 0 0 227 227 0 100.0 100.0 100.0

138 0 1 24 24 0 100.0 100.0 100.0

12 0 1 2 2 0 100.0 100.0 100.0

5 0 1 0 0 0 100.0 100.0 0.0

7 0 0 2 2 0 100.0 100.0 100.0

126 0 0 22 22 0 100.0 100.0 100.0

12 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 0 100.0 100.0 0.0

2 0 0 0 0 0 100.0 100.0 0.0

10 0 0 0 0 0 100.0 100.0 0.0

480 1 3 0 0 0 99.9 99.9 0.0

397 1 3 0 0 0 99.9 99.9 0.0

320 1 3 0 0 0 99.8 99.8 0.0

77 0 0 0 0 0 100.0 100.0 0.0

83 0 0 0 0 0 100.0 100.0 0.0

633 4 0 0 0 0 99.6 99.6 0.0

370 4 0 0 0 0 99.1 99.1 0.0

219 4 0 0 0 0 98.3 98.3 0.0

151 0 0 0 0 0 100.0 100.0 0.0

263 0 0 0 0 0 100.0 100.0 0.0

144 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 0 100.0 100.0 0.0

6 0 2 0 0 0 100.0 100.0 0.0

138 0 3 0 0 0 100.0 100.0 0.0

NUMBER OF BANKS AND BRANCHES

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. N U M B E R OF B A N K IN G OFFICES IN THE U N IT E D STATES (STATES A N D O THER A R E A S ),

DECEMBER 31, 19 7 4 -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 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 N oninsured

T otal Insured

N oninsured

A ll

banks

of

deposit

Com ­

m ercial

banks

of

deposit

M utual

savings

banks

Total

Members F.R. 

System

Nonmembers

F.R.

System

Banks 

o f depo sit2

N ondeposit

tru st

com ­

panies9 National State

Idaho— all o f f ic e s .............................. 215 215 0 215 215 161 10 44 0 0 0 0 0 100.0 100.0 0.0

B a n k s ............................................. 24 24 0 24 24 6 4 14 0 0 0 0 0 100.0 100.0 0.0

Unit banks.............................. 11 11 0 11 77 7 2 8 0 0 0 0 0 100.0 100.0 0.0

Banks operating branches . 13 13 0 13 13 5 2 6 0 0 0 0 0 100.0 100.0 0.0

Branches ........................................ 191 191 0 191 191 155 6 30 0 0 0 0 0 100.0 100.0 0.0

Illin o is -a ll o f f ic e s ............................ 1,398 1,377 21 1,398 1,377 518 83 776 15 6 0 0 0 98.9 98.9 0.0

B a n k s ............................................. 1,204 1,183 21 1,204 1,183 420 71 692 15 6 0 0 0 98.7 98.7 0.0

Unit banks.............................. 1r016 995 21 1,016 995 326 59 610 15 6 0 0 0 98.5 98.5 0.0

Banks operating branches . 188 188 0 188 188 94 12 82 0 O 0 0 0 100.0 100.0 0.0

Branches ........................................ 194 194 0 194 194 98 12 84 0 0 0 0 0 100.0 100.0 0.0

In d ia n a -a ll o ffic e s ............................ 1,257 1,255 2 1,252 1,250 562 103 585 1 1 5 5 0 99.9 99.9 100.0

Banks ............................................. 414 412 2 410 408 121 51 236 1 1 4 4 0 99.8 99.8 100.0

Unit banks.............................. 186 184 2 183 181 38 26 777 7 7 3 3 0 99.5 99.5 100.0

Banks operating branches . 228 228 0 227 227 83 25 119 0 0 1 1 0 100.0 100.0 100.0

Branches ........................................ 843 843 0 842 842 441 52 349 0 0 1 1 0 100.0 100.0 100.0

Io w a -a ll o ffic e s ................................. 1,050 1,042 8 1,050 1,042 175 86 781 7 1 0 0 0 99.3 99.3 0.0

B a n k s ............................................. 665 657 8 665 657 99 47 511 7 1 0 0 0 98.9 98.9 0.0

Unit banks.............................. 417 409 8 417 409 52 27 330 7 7 0 0 0 98.3 98.3 0.0

Banks operating branches . 248 248 O 248 248 47 20 181 0 0 0 0 0 100.0 100.0 0.0

Branches ........................................ 385 385 0 385 385 76 39 270 0 0 0 0 0 100.0 100.0 0.0

Kansas-all offices ............................ 740 739 1 740 739 224 36 479 1 0 0 0 0 99.9 99.9 0.0

B a n k s ............................................. 613 612 1 613 612 171 27 414 1 0 0 0 0 99.8 99.8 0.0

Unit banks.............................. 512 511 7 512 511 130 20 361 7 0 0 0 0 99.8 99.8 0.0

Banks operating branches . 101 101 0 101 101 41 7 53 0 0 0 0 0 100.0 100.0 0.0

Branches ........................................ 127 127 0 127 127 53 9 65 0 0 0 0 0 100.0 100.0 0.0

K e n tu c k y -a ll o ffic e s ....................... 813 812 1 813 812 274 90 448 1 0 0 0 0 99.9 9 9 5 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

Unit banks.............................. 177 176 1 177 176 29 4 143 7 0 0 0 0 99.4 99.4 0.0

Banks operating branches . 165 165 O 165 165 51 7 107 0 0 0 0 0 100.0 100.0 0.0

Branches ........................................ 471 471 0 471 471 194 79 198 0 0 0 0 0 100.0 100.0 0.0

192 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 f f ic e s ....................... 790 790

Banks ............................................. 249 249

Unit banks.............................. 91 91

Banks operating branches . 158 158

B ra n ch e s........................................ 541 541

M a in e -a ll o ffic e s .............................. 405 400

Banks ............................................. 81 76

Unit banks.............................. 23 18

Banks operating branches . 58 58

Branches ........................................ 324 324

M aryland— all offices ....................... 862 862

Banks ............................................. 117 117

Unit banks.............................. 37 37

Banks operating branches . 80 80

Branches ........................................ 745 745

Massachusetts— all o ffic e s ............... 1,505 1,083

Banks ............................................. 319 155

Unit banks.............................. 91 25

Banks operating branches . 228 130

Branches3 ...................................... 1,186 928

M ic h ig a n -a ll offices ....................... 1,827 1,824

B a n k s ............................................. 347 346

Unit banks.............................. 98 98

Banks operating branches . 249 248

B ra n ch e s........................................ 1,480 1,478

M in n e s o ta -a ll o ffic e s ....................... 779 776

Banks ............................................. 746 743

Unit banks............................... 717 714

Banks operating branches . 29 29

Branches ........................................ 33 33

M ississippi-all offices .................... 684 684

Banks ............................................. 181 181

Unit banks.............................. 53 53

Banks operating branches . 128 128

Branches ........................................ 503 503

M issouri— all o ffic e s ......................... 961 955

B a n k s ............................................. 700 694

Unit banks.............................. 477 471

Banks operating branches . 223 223

B ra n ch e s........................................ 261 261

M o n ta n a -a ll o ffic e s ......................... 168 166

Banks ............................................. 154 152

Unit banks.............................. 140 138

Banks operating branches . 14 14

Branches ........................................ 14 14

0 790 790 278 51

0 249 249 52 9

0 91 91 13 1

0 158 158 39 8

0 541 541 226 42

5 326 322 146 34

5 49 45 20 3

5 13 9 4 0

0 36 36 16 3

0 277 277 126 31

0 817 817 381 94

0 114 114 40 7

0 37 37 8 7

0 77 77 32 6

0 703 703 341 87

422 1,037 1,029 569 180

164 152 147 78 13

66 28 25 13 0

98 124 122 65 13

258 885 882 491 167

3 1,827 1,824 814 577

1 347 346 117 93

0 98 98 25 24

1 249 248 92 69

2 1,480 .1 ,4 7 8 697 484

3 777 774 218 30

3 745 742 202 28

3 717 714 190 26

0 28 28 12 2

0 32 32 16 2

0 684 684 253 23

0 181 181 39 6

0 53 53 6 2

0 128 128 33 4

0 503 503 214 17

6 961 955 163 96

6 700 694 110 65

6 477 471 67 40

0 223 223 43 25

0 261 261 53 31

2 168 166 59 49

2 154 152 55 44

2 140 138 51 39

0 14 14 4 5

0 14 14 4 5

461 0 0 0 0 0 100.0 100.0 0.0

188 0 0 0 0 0 100.0 100.0 0.0

77 0 0 0 0 0 100.0 100.0 0.0

111 0 0 0 0 0 100.0 100.0 0.0

273 0 0 0 0 0 100.0 100.0 0.0

142 4 0 79 78 1 98.8 98.8 98.7

22 4 0 32 31 1 93.8 91.8 96.9

5 4 0 10 9 1 78.3 69.2 90.0

17 0 0 22 22 0 100.0 100.0 100.0

120 0 0 47 47 0 100.0 100.0 100.0

342 0 0 45 45 0 100.0 100.0 100.0

67 0 0 3 3 0 100.0 100.0 100.0

28 0 0 0 0 0 100.0 100.0 0.0

39 0 0 3 3 0 100.0 100.0 100.0

275 0 0 42 42 0 100.0 100.0 100.0

280 8 0 468 54 414 72.0 99.2 11.5

56 5 0 167 8 159 48.6 96.7 4.8

12 3 0 63 0 63 27.5 89.3 0.0

44 2 0 104 8 96 57.0 98.4 7.7

224 3 0 301 46 255 78.2 99.7 15.3

433 3 0 0 0 0 99.8 99.8 0.0

136 1 0 0 0 0 99.7 99.7 0.0

49 0 0 0 0 0 100.0 100.0 0.0

87 1 0 0 0 0 99.6 99.6 0.0

297 2 0 0 0 0 99.9 99.9 0.0

526 3 0 2 2 0 99.6 99.6 100.0

512 3 0 1 1 0 99.6 99.6 100.0

498 3 0 0 0 0 99.6 99.6 0.0

14 0 0 1 1 0 100.0 100.0 100.0

14 0 0 1 1 0 100.0 100.0 100.0

408 0 0 0 0 0 100.0 100.0 0.0

136 0 0 0 0 0 100.0 100.0 0.0

45 0 0 0 0 0 100.0 100.0 0.0

91 0 0 0 0 0 100.0 100.0 0.0

272 0 0 0 0 0 100.0 100.0 0.0

696 2 4 0 0 0 99.8 99.8 0.0

519 2 4 0 0 0 99.7 99.7 0.0

364 2 4 0 0 0 99.6 99.6 0.0

155 0 0 0 0 0 100.0 100.0 0.0

177 0 0 0 0 0 100.0 100.0 0.0

58 0 2 0 0 0 100.0 100.0 0.0

53 0 2 0 0 0 100.0 100.0 0.0

48 0 2 0 0 0 100.0 100.0 0.0

5 0 0 0 0 0 100.0 100.0 0.0

5 0 0 0 0 0 100.0 100.0 0.0

NUMBER OF BANKS AND BRANCHES

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. N U M B E R OF B A N K IN G OFFICES IN THE U N IT E D STATES (STATES A N D O TH E R A R E A S ),

DECEMBER 31, 1 9 7 4 -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 Total

Insured Noninsured

T otal Insured

N oninsured

A ll

banks

of

deposit

Commercial

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

l\le b ra ska -a ll offices ....................... 536 531 5 536 531 165 9 357 0 5 0 0 0 100.0 100.0 0.0

Banks ............................................. 453 448 5 453 448 121 8 319 0 5 0 0 0 100.0 100.0 0.0

Unit banks............................... 390 385 5 390 385 88 7 290 0 5 0 0 0 100.0 100.0 0.0

Banks operating branches . 63 63 0 63 63 33 1 29 0 0 0 0 0 100.0 100.0 0.0

Branches ........................................ 83 83 0 83 83 44 1 38 0 0 0 0 0 100.0 100.0 0.0

N e va d a -a ll offices ......................... 113 113 0 113 113 78 16 19 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

Unit banks.............................. 1 1 0 7 1 1 0 0 0 0 0 0 0 100.0 100.0 0.0

Banks operating branches . 7 7 0 7 7 3 1 3 0 0 0 0 0 100.0 100.0 0.0

B ra n ch e s........................................ 105 105 0 105 105 74 15 16 0 0 0 0 0 100.0 100.0 0.0

New H a m p s h ire -a ll o f f ic e s .......... 232 230 2 181 179 125 3 51 1 1 51 51 0 99.6 99.4 100.0

Banks ............................................. 111 109 2 82 80 47 1 32 1 1 29 29 0 99.1 98.8 100.0

Unit banks.............................. 55 53 2 37 35 16 0 19 1 1 18 18 0 98.1 97.2 100.0

Banks operating branches . 56 56 0 45 45 31 1 13 0 0 11 11 0 100.0 100.0 100.0

Branches ........................................ 121 121 0 99 99 78 2 19 0 0 22 22 0 100.0 100.0 100.0

New Je rs e y -a ll o ffic e s .................... 1,667 1,667 0 1,554 1,554 1,044 231 279 0 0 113 113 0 100.0 100.0 100.0

Banks ............................................. 238 238 0 218 218 122 23 73 0 0 20 20 0 100.0 100.0 100.0

Unit banks.............................. 53 53 0 48 48 20 2 26 0 0 5 5 0 100.0 100.0 100.0

Banks operating branches . 185 185 0 170 170 102 21 47 0 0 15 15 0 100.0 100.0 100.0

Branches ........................................ 1,429 1,429 0 1,336 1,336 922 208 206 0 0 93 93 0 100.0 100.0 100.0

New M e x ic o -a ll o ffic e s .................. 266 265 1 266 265 135 21 109 0 1 0 0 0 100.0 100.0 0.0

Banks ............................................. 77 76 1 77 76 34 7 35 0 1 0 0 0 100.0 100.0 0.0

Unit banks.............................. 17 16 1 17 16 5 2 9 0 1 0 0 0 100.0 100.0 0.0

Banks operating branches . 60 60 0 60 60 29 5 26 0 0 0 0 0 100.0 100.0 0.0

B ra n ch e s........................................ 189 189 0 189 189 101 14 74 0 0 0 0 0 100.0 100.0 0.0

New Y o r k - a ll o ffic e s ....................... 4,095 4,052 43 3,395 3,352 1,699 1,438 215 38 5 700 700 0 99.1 98.9 100.0

B a n k s ............................................. 424 390 34 305 271 154 70 47 29 5 119 119 0 93.1 90.3 100.0

Unit banks.............................. 106 78 28 101 73 40 14 19 23 5 5 5 0 77.2 76.0 100.0

Banks operating branches . 318 312 6 204 198 114 56 28 6 0 114 114 0 98.1 97.1 100.0

Branches3. ...................................... 3,671 3,662 9 3,090 3,081 1,545 1,368 168 9 0 581 581 0 99.8 99.7 100.0

194 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 ............. 1,639 1,628 11 1,639 1,628 786 3

B a n k s ............................................. 92 91 1 92 91 26 2

Unit banks.............................. 21 21 0 21 21 4 1

Banks operating branches . 71 70 1 71 70 22 1

B ran che s ........................................ 1,547 1,537 10 1,547 1,537 760 1

N o rth D a k o ta -a ll o ffic e s ............... 251 246 5 251 246 61 6

Banks ............................................. 171 168 3 171 168 43 4

Unit banks.............................. 114 112 2 114 112 29 3

Banks operating branches . 57 56 1 57 56 14 1

B ra nch es........................................ 80 78 2 80 78 18 2

O h io -a ll o ffic e s ................................. 2,111 2,109 2 2,111 2,109 1,163 505

B a n k s ............................................. 498 496 2 498 496 219 112

Unit banks.............................. 172 170 2 172 170 50 48

Banks operating branches . 326 326 0 326 326 169 64

B ra n ch e s........................................ 1,613 1,613 0 1,613 1,613 944 393

O k la h o m a -a ll o ffic e s ....................... 556 551 5 556 551 250 18

Banks ............................................. 460 455 5 460 455 193 15

Unit banks.............................. 368 363 5 368 363 140 12

Banks operating branches . 92 92 0 92 92 53 3

B ra n ch e s........................................ 96 96 0 96 96 57 3

O re g o n -a ll o ffic e s ............................ 474 472 2 469 467 298 0

B a n k s ............................................. 50 48 2 49 47 8 0

Unit banks.............................. 19 17 2 19 17 1 0

Banks operating branches . 31 31 0 30 30 7 0

Branches3 ...................................... 424 424 0 420 420 290 0

P ennsylvania-all offices ............... 2 ,753 2,744 9 2,599 2,590 1,578 201

B a n k s ............................................. 414 407 7 406 399 250 15

Unit banks.............................. 144 138 6 143 137 95 6

Banks operating branches . 270 269 1 263 262 155 9

Branches3 ...................................... 2,339 2,337 2 2,193 2,191 1,328 186

Rhode Is la n d -a ll o f f ic e s ............... 297 285 12 230 218 119 0

Banks ............................................. 22 20 2 16 14 5 0

Unit banks.............................. 3 3 0 3 3 0 0

Banks operating branches . 19 17 2 13 11 5 0

Branches ........................................ 275 265 10 214 204 114 0

S outh C a ro lin a -a ll o ffic e s ............. 672 672 0 672 672 308 15

Banks ............................................. 91 91 0 91 91 18 6

Unit banks.............................. 28 28 0 28 28 2 2

Banks operating branches . 63 63 0 63 63 16 4

Branches ........................................ 581 581 0 581 581 290 9

S outh D a k o ta -a ll o ffic e s ............... 273 273 0 273 273 100 40

Banks ............................................. 158 158 0 158 158 31 27

Unit banks.............................. 113 113 0 113 113 20 18

Banks operating branches.. 45 45 0 45 45 11 9

Branches ........................................ 115 115 0 115 115 69 13

839 11 0

63 1 0

16 0 0

47 1 0

776 10 0

179 5 0

121 3 0

80 2 0

41 1 0

58 2 0

441 2 0

165 2 0

72 2 0

93 0 0

276 0 0

283 1 4

247 1 4

211 1 4

36 0 0

36 0 0

169 2 0

39 2 0

16 2 0

23 0 0

130 0 0

811 7 2

134 5 2

36 4 2

98 1 0

677 2 0

99 12 0

9 2 0

3 0 0

6 2 0

90 10 0

349 0 0

67 0 0

24 0 0

43 0 0

282 0 0

133 0 0

100 0 0

75 0 0

25 0 0

33 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

5 5 0

1 1 0

0 0 0

1 1 0

4 4 0

154 154 0

8 8 0

7 7 0

7 7 0

146 146 0

67 67 0

6 6 0

0 0 0

6 6 0

61 61 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

99.3 99.3 0.0

98.9 98.9 0.0

100.0 100.0 0.0

98.6 98.6 0.0

99.4 99.4 0.0

98.0 98.0 0.0

98.2 98.2 0.0

98.2 98.2 0.0

98.2 98.2 0.0

97.5 97.5 0.0

99.9 99.9 0.0

99.6 99.6 0.0

98.8 98.8 0.0

100.0 100.0 0.0

100.0 100.0 0.0

99.8 99.8 0.0

99.8 99.8 0.0

99.7 99.7 0.0

100.0 100.0 0.0

100.0 100.0 0.0

99.6 99.6 100.0

96.0 95.9 100.0

89.5 89.5 0.0

100.0 100.0 100.0

100.0 100.0 100.0

99.7 99.7 100.0

98.8 98.8 100.0

97.2 97.2 100.0

99.6 99.6 100.0

99.9 99.9 100.0

96.0 94.8 100.0

90.9 87.5 100.0

100.0 100.0 0.0

89.5 84.6 100.0

96.4 95.3 100.0

100.0 100.0 0.0

100.0 100.0 0.0

100.0 100.0 0.0

100.0 100.0 0.0

100.0 100.0 0.0

100.0 100.0 0.0

100.0 100.0 0.0

100.0 100.0 0.0

100.0 100.0 0.0

100.0 100.0 0.0

NUMBER OF BANKS AND BRANCHES 195

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. N U M B E R OF B A N K IN G OFFICES IN THE U N ITE D STATES (STATES A N D O THER A R E A S ),

DECEMBER 31, 1 9 7 4 -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 of 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 T otal

Insured Non insured

Total Insured

N oninsured

A ll

banks

of

deposit

Com ­

mercial

banks

of

deposit

M utual

savings

banks

Total

Members F.R. 

System

N onmembers

F.R.

System

Banks 

o f deposit2

N ondeposit

tru st

com ­

panies9 National State

Tennessee— all o ffic e s ................. 1,060 1,056 4 1,060 1,056 427 58 571 3 1 0 0 0 99.7 99.7 0.0

Banks ............................................. 337 334 3 337 334 75 15 244 2 1 0 0 0 99.4 99.4 0.0

Unit banks.............................. 138 136 2 138 136 13 8 115 1 1 0 0 0 99.3 99.3 0.0

Banks operating branches . 199 198 1 199 198 62 7 129 1 0 0 0 0 99.5 99.5 0.0

Branches ........................................ 723 722 1 723 722 352 43 327 1 0 0 0 0 99.9 99.9 0.0

T exas-all o ffic e s ....................... 1,436 1,429 7 1,436 1,429 589 49 791 7 0 0 0 0 99.5 99.5 0.0

Banks ............................................. 1,313 1,306 7 1,313 1,306 569 38 699 7 0 0 0 0 99.5 99.5 0.0

Unit banks.............................. 1,203 1,196 7 1,203 1,196 551 29 616 7 0 0 0 0 99.4 99.4 0.0

Banks operating branches . 110 110 0 110 110 18 9 83 0 0 0 0 0 100.0 100.0 0.0

Branches ........................................ 123 123 0 123 123 20 11 92 0 0 0 0 0 100.0 100.0 0.0

U tah -all o ffic e s......................... 241 240 1 241 240 107 41 92 0 1 0 0 0 100.0 100.0 0.0

Banks ............................................. 55 54 1 55 54 11 5 38 0 1 0 0 0 100.0 100.0 0.0

Unit banks.............................. 35 34 7 35 34 6 2 26 0 1 0 0 0 100.0 100.0 0.0

Banks operating branches . 20 20 0 20 20 5 3 12 0 0 0 0 0 100.0 100.0 0.0

Branches ........................................ 186 186 0 186 186 96 36 54 0 0 0 0 0 100.0 100.0 0.0

Verm ont-all office s................... 178 177 1 165 164 63 0 101 0 1 13 13 0 100.0 100.0 100.0

B a n k s ............................................. 40 39 1 34 33 17 0 16 0 1 6 6 0 100.0 100.0 100.0

Unit banks.............................. 10 9 1 8 7 5 0 2 0 1 2 2 0 100.0 100.0 100.0

Banks operating branches . 30 30 0 26 26 12 0 14 0 0 4 4 0 100.0 100.0 100.0

Branches ........................................ 138 138 0 131 131 46 0 85 0 0 1 1 0 100.0 100.0 100.0

Virginia-all offices ................... 1,400 1,400 0 1,400 1,400 742 275 383 0 0 0 0 0 100.0 100.0 0.0

Banks ............................................. 288 288 0 288 288 109 65 114 0 0 0 0 0 100.0 100.0 0.0

Unit banks.............................. 94 94 0 94 94 18 33 43 0 0 0 0 0 100.0 100.0 0.0

Banks operating branches . 194 194 0 194 194 91 32 71 0 0 0 0 0 100.0 100.0 0.0

Branches ........................................ 1,112 1,112 0 1,112 1,112 633 210 269 0 0 0 0 0 100.0 100.0 0.0

W ashington-all office s ............... 848 842 6 754 748 529 41 178 5 1 94 94 0 99.4 99.3 100.0

B a n k s ............................................. 101 95 6 93 87 23 5 59 5 1 8 8 0 95.0 94.6 100.0

Unit banks.............................. 41 35 6 41 35 7 2 26 5 1 0 O 0 87.5 87.5 0.0

Banks operating branches . 60 60 0 52 52 16 3 33 0 0 8 8 0 100.0 100.0 100.0

Branches3. ...................................... 747 747 0 661 661 506 36 119 0 0 86 86 0 100.0 100.0 100.0

196 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 f f ic e s ............... 240 240 0 240 240 113 32

B a n k s ............................................. 214 214 0 214 214 100 29

Unit banks.............................. 188 188 0 188 188 87 26

Banks operating branches . 26 26 0 26 26 13 3

Branches ........................................ 26 26 0 26 ,.,26 13 3

W isco nsin-all o ffic e s ....................... 954 949 5 951 946 210 55

Banks ............................................. 628 623 5 625 620 128 33

Unit banks.............................. 431 426 5 428 423 84 23

Banks operating branches . 197 197 0 197 197 44 10

B ra n ch e s........................................ 326 326 0 326 326 82 22

W y o m in g -a ll o ffice s ......................... 76 76 0 76 76 45 13

Banks ............................................. 74 74 0 74 74 44 13

Unit banks.............................. 72 72 0 72 72 43 13

Banks operating branches . 2 2 0 2 2 1 0

Branches ........................................ 2 2 0 2 2 1 0

Other areas

Pacific Is.— all offices4....................... 29 18 11 29 18 9 0

Banks ............................................. 1 1 0 1 1 0 0

Unit banks.............................. 1 7 0 7 7 0 0

Banks operating branches . 0 0 0 0 0 0 0

Branches5 ...................................... 28 17 11 28 17 9 0

Canal Z o n e -a ll o ffic e s .................... 2 0 2 2 0 0 0

B a n k s ............................................. 0 0 0 0 0 0 0

Unit banks.............................. 0 0 0 0 0 0 0

Banks operating branches . 0 0 0 0 0 0 0

Branches6 ...................................... 2 0 2 2 0 0 0

Puerto R ic o -a ll o f f ic e s .................. 229 209 20 228 208 23 0

Banks ............................................. 15 10 5 14 9 1 0

Unit banks.............................. 3 2 1 2 7 1 0

Banks operating branches . 12 8 4 12 8 0 0

Branches7 ...................................... 214 199 15 214 199 22 0

V irgin Islands— all o ffic e s ............... 37 31 6 37 31 29 0

B a n k s ............................................. 8 2 6 8 2 1 0

Unit banks.............................. 6 0 6 6 0 0 0

Banks operating branches . 2 2 0 2 2 1 0

Branches8 ..................................... 29 29 0 29 29 28 0

95 0 0 0 0 0 100.0 100.0 0.0

85 0 0 0 0 0 100.0 100.0 0.0

75 0 0 0 0 0 100.0 100.0 0.0

10 0 0 0 0 0 100.0 100.0 0.0

10 0 0 0 0 0 100.0 100.0 0.0

681 0 5 3 3 0 100.0 100.0 100.0

459 0 5 3 3 0 100.0 100.0 100.0

316 0 5 3 3 0 100.0 100.0 100.0

143 0 0 0 0 0 100.0 100.0 0.0

222 0 0 0 0 0 100.0 100.0 0.0

18 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 0 0 0 0 0 100.0 100.0 0.0

1 0 0 0 0 0 100.0 100.0 0.0

9 11 0 0 n 0 62.1 62.1 0.0

1 0 0 0 0 0 100.0 100.0 0.0

7 0 0 0 0 0 100.0 100.0 0.0

0 0 0 0 0 0 0.0 0.0 0.0

8 11 0 0 0 0 60.7 60.7 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

185 20 0 1 1 0 91.3 91.2 100.0

8 5 0 1 1 0 66.7 64.3 100.0

0 7 0 7 7 0 66.7 50.0 10Q.0

8 4 0 0 0 0 66.7 66.7 0.0

177 15 0 0 0 0 93.0 93.0 0.0

2 6 0 0 0 0 83.8 83.8 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 0 100.0 100.0 0.0

1 0 0 0 0 0 100.0 100.0 0.0

NUMBER OF BANKS AND BRANCHES 197

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),

D E C E M B E R 3 1 , 1 9 7 4 — C O N T IN U E D 

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR A R E A AND TYPE OF OFFICE

1 N ondeposit tru s t companies are excluded in com puting these percentages.

in c lu d e s 13 noninsured branches o f insured banks: 11 in the Pacific Islands and 2 in the Canal Zone. 

M assachusetts: 1 branch operated by a noninsured bank in New Y o rk .

New Y o rk : 19 branches operated by a 3 State nonm em ber banks in Puerto Rico.

O regon: 1 branch operated by a national bank in California.

Pennsylvania: 2 branches operated by a noninsured bank in New Y o rk and a national bank in New Jersey. 

W ashington: 3 branches operated by a national bank in C alifornia.

4 U.S. Possessions: Am erican Samoa, Guam, M idw ay Islands, and Wake Island. Trust Territories: Caroline 

Islands, Mariana Islands, and Marshall Islands.

5Pacific Islands: 28 branches:

A m erican Samoa: 2 insured branches operated by a State nonm em ber bank in Hawaii.

G uam: 15 insured branches operated by 2 State nonm em ber banks in Hawaii, 1 State nonm em ber bank in 

C alifornia, a national bank in C alifornia, and 2 national banks in New Y o rk.

Caroline Islands: 4 noninsured branches operated by a national bank in C alifornia and a State nonm em ber 

bank 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 Hawaii.

M idway Islands: 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.

7Puerto R ico: 22 insured branches operated by 2 national banks in New Y o rk.

8V irgin Islands: 21 insured branches operated by 2 national banks in New Y o rk, 1 national bank in 

C alifornia, and 1 national bank in Pennsylvania, 

in c lu d e s a noninsured nondeposit tru s t com pany th a t is a mem ber o f Federal Reserve System.

198 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 104. NUMBER AND DEPOSITS OF A L L COMMERCIAL AND M UTUAL SAVINGS BANKS 

(STATES AND OTHER AREAS), DECEMBER 31, 1974 

BANKS GROUPED BY CLASS AND DEPOSIT SIZE

Deposit size 

(in dollars)

A ll

banks

Insured com m ercial banks N oninsured 

banks 

and tru st 

companies

M utual savings banks

Total

Members F.R. System N onmembers 

F.R. System

Insured

Noninsured

N ational State

N um ber o f banks

Less than 1 m illio n ......................... 219 85 20 9 56 134 0 0

1 to 2 m il l io n ................................... 379 356 54 15 287 23 0 0

2 to 5 m il l io n ................................... 2,287 2,252 360 108 1,784 33 0 2

5 to 10 m il l io n ................................. 3,233 3,201 743 200 2,258 16 11 5

10 to 25 m il l io n .............................. 4,705 4,638 1,666 349 2,623 16 22 29

25 to 50 m il l io n .............................. 2,066 1,951 888 162 901 6 71 38

50 to 100 m il l io n ............................ 1,055 933 490 107 336 10 62 50

100 to 500 m il l io n ......................... 793 635 369 85 181 21 103 34

500 m illio n to 1 b illio n .................. 124 93 61 15 17 0 29 2

1 b illio n or m o re .............................. 107 84 57 24 3 1 22 0

T otal ...................................... 14,968 14,228 4,708 1,074 8,446 260 320 160

(In thousands o f dollars)

A m o u n t o f deposits

Less than 1 m illio n ......................... 90,291 60,423 15,127 6,294 39,002 29,868 0 0

1 to 2 m il l io n ................................... 602,345 564,358 88,489 22,739 453,130 37,987 0 0

2 to 5 m il l io n ................................... 8,222,350 8,100,779 1,361,549 390,333 6,348,897 114,485 0 7,086

5 to 10 m illio n ................................. 23,876,059 23,635,770 5,663,694 1,476,739 16,495,337 113,643 86,809 39,837

10 to 25 m il l io n .............................. 75,868,550 74,667,687 27,644,777 5,709,299 41,313,611 281,316 400,440 519,107

25 to 50 m il l io n .............................. 72,374,651 68,090,248 31,450,645 5,666,883 30,972,720 284,335 2,614,853 1,385,215

50 to 100 m il l io n ............................ 72,927,764 64,524,317 33,975,967 7,404,585 23,143,765 702,773 4,235,851 3,464,823

100 to 500 m il l io n ......................... 163,706,257 130,276,022 77,417,153 19,500,005 33,358,864 4,497,069 23,149,920 5,783,246

500 m illio n to 1 b illio n .................. 89,558,276 68,184,384 44,274,555 10,751,636 13,158,193 0 20,008,209 1,365,683

1 b illio n or m o re .............................. 3 45,783 ,0 1 0 308,308,934 211,269,632 93,870,300 3,169,002 1,155,743 36,318,333 0

T otal ...................................... 853,009,553 746,412,922 433,161,588 144,798,813 168,452,521 7,217,219 86,814,415 12,564,997

NUMBER OF BANKS AND BRANCHES 199

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 105. NUMBER AND DEPOSITS OF A L L COMMERCIAL BANKS1 IN THE UNITED STATES (STATES AND OTHER AREAS),

D E C E M B E R 31, 1 9 7 4 

BANKS GROUPED BY DEPOSIT SIZE AND STATE 

(Amounts 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 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

Total U nited States

Banks ........................................ 14,488 219 379 2,285 3,217 4,654 1,957 943 656 93 85

T otal de posits......................... 751,229,991 88,003 592,715 8,183,975 23,712,569 74,709,586 67,955,327 64,920,549 133,940,857 67,661,733 309,464,677

State

Alabama

Banks ........................................ 293 0 6 31 76 123 34 11 10 2 0

D e p o sits................................... 8,367,010 0 10,041 117,808 565,203 1,872,055 1,091,892 793,180 2,380,598 1,536,233 0

Alaska

B a n k s ........................................ 10 0 0 0 1 0 4 2 3 0 0

D e p o sits................................... 1,003,920 0 0 0 7,284 0 124,808 172,711 699,117 0 0

Arizona

Banks ........................................ 25 9 0 3 2 2 1 1 4 1 2

D e p o sits................................... 5,710,373 957 0 10,921 13,172 25,059 42,517 83,590 884,641 793,587 3,855,929

Arkansas

B a n k s ........................................ 262 6 5 31 70 93 36 16 5 0 0

D e p o sits................................... 5,428,437 2,242 7,665 110,893 508,776 1,494,556 1,179,127 1,145,997 979,181 0 0

California

Banks ........................................ 198 13 1 16 27 51 36 16 26 4 8

D e p o sits................................... 79,183,770 714 1,530 52,402 204,438 866,253 1,294,716 1,140,185 4,545,950 2,668,343 68,409,239

C olorado

B a n k s ........................................ 329 44 24 46 71 92 26 19 5 2 0

D e p o sits................................ .. 7,083,986 19,445 36,922 156,821 513,540 1,449,680 917,258 1,290,959 1,162,699 1,536,662 0

C onnecticut

Banks ........................................ 71 0 1 7 15 19 12 6 8 1 2

D e p o s its ................................... 6,984,957 0 1,120 21,873 117,792 323,380 390,135 391,455 2,238,003 644,435 2,856,764

Delaware

Banks ........................................ 18 1 0 2 4 5 1 1 3 1 0

D e p o sits................................... 1,840,146 0 0 7,612 30,752 64,922 35,417 52,225 1,056,762 592,456 0

200 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Washington D.C.

Banks ........................................ 16 0 0 1 0

D e p o s its................................... 3,585,604 0 0 3,154 0

Florida

B a n k s ........................................ 716 15 16 76 110

D e p o sits................................... 24,114,523 8,707 23,999 263,454 857,382

Georgia

Banks ........................................ 447 6 21 71 122

D e p o sits................................... 12,159,668 2,811 34,138 256,136 886,843

Hawaii

Banks ........................................ 11 0 0 1 1

D e p o sits................................... 2,463,620 0 0 2,326 6,987

Idaho

Banks ........................................ 24 0 2 0 8

D e p o sits................................... 2,432,981 0 3,116 0 54,508

Illinois

Banks ........................................ 1,206 17 17 184 278

D e p o sits................................... 58,854,661 4,528 26,138 671,347 2,086,694

Indiana

B a n k s ........................................ 410 3 4 26 71

D e p o sits ................................... 16,512,931 972 6,844 101,168 531,695

Iowa

Banks ........................................ 665 3 4 122 218

D e p o sits................................... 10,612,115 940 6,083 472,276 1,561,089

Kansas

Banks ........................................ 613 4 38 187 160

D e p o sits................................... 7,965,725 3,141 59,643 646,377 1,161,578

Kentucky

Banks ........................................ 342 3 4 57 68

D e p o sits................................... 9,090,860 2,538 6,476 207,018 515,830

Louisiana

B a n k s ........................................ 249 0 3 21 41

D e p o sits................................... 11,017,326 0 5,202 75,425 305,214

Maine

B a n k s ........................................ 49 3 2 3 5

D e p o sits................................... 1,828,078 1,918 2,819 12,535 36,456

Maryland

Banks ........................................ 114 0 3 10 24

D e p o sits................................... 8,011,894 0 4,549 38,437 167,389

Massachusetts

Banks ........................................ 152 1 0 5 23

D e p o sits................................... 14,933,859 567 0 16,891 172,390

2 5 2 4 1 1

24,615 178,282 152,148 1,151,821 843,173 1,232,411

216 151 97 34 0 1

3,490,122 5,246,109 6,631,182 6,254,048 0 1,339,520

161 36 20 6 2 2

2,565,516 1,176,026 1,388,471 1,039,406 1,379,466 3,430,855

2 0 0 5 2 0

26,395 0 0 736,705 1,691,207 0

6 2 2 2 2 0

110,444 60,827 146,993 510,562 1,546,531 0

352 199 100 52 3 4

5,590,487 7,039,378 6,772,266 8,615,398 2,067,697 25,980,728

161 74 43 25 1 2

2,707,754 2,581,650 2,850,027 4,410,803 672,760 2,649,258

232 56 22 8 0 0

3,641,680 1,838,209 1,483,154 1,608,684 0 0

156 54 6 8 0 0

2,456,780 1,787,082 432,942 1,418,182 0 0

136 43 21 8 2 0

2,111,274 1,450,682 1,422,017 1,847,839 1,527,186 0

99 47 13 22 2 1

1,667,765 1,612,003 817,730 4,172,125 1,343,824 1,018,038

20 7 4 5 0 0

316,898 245,335 283,807 928,310 0 0

36 19 13 4 4 1

614,567 611,183 803,306 943,736 3,271,250 1,557,477

50 25 24 20 0 4

766,121 917,770 1,677,599 3,934,544 0 7,447,977

NUMBER OF BANKS AND BRANCHES 201

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 105. NUMBER AND DEPOSITS OF A L L COMMERCIAL BANKS1 IN THE UNITED STATES (STATES AND OTHER AREAS),

D E C E M B E R 3 1 , 1 9 7 4 -C O N T IN U E D 

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 

more

M ichigan

Banks ........................................ 347 0 6 20 59 118 66 40 29 5 4

D e p o sits................................... 28,106,158 0 8,299 79,275 459,805 1,954,926 2,335,836 2,865,671 5,661,240 3,769,226 10,971,880

M innesota

Banks ........................................ 745 2 17 202 226 209 57 22 7 0 3

D e p o sits................................... 13,896,104 969 27,513 746,096 1,623,579 3,262,265 1,994,550 1,382,953 1,154,226 0 3,703,953

Mississippi

Banks ........................................ 181 0 5 19 39 76 25 10 5 2 0

D e p o sits................................... 5,144,397 0 8,691 62,663 285,941 1,209,589 891,338 628,151 764,962 1,293,062 0

M issouri

Banks ........................................ 700 12 19 153 175 220 74 30 13 2 2

D e p o sits................................... 16,161,768 5,139 27,969 514,215 1,295,107 3,483,114 2,593,005 2,102,194 2,438,887 1,121,368 2,580,770

M ontana

Banks ........................................ 154 2 4 34 42 46 15 8 3 0 0

D e p o sits................................... 2,616,725 0 6,219 127,992 320,000 714,674 526,498 541,271 380,071 0 0

Nebraska

Banks ........................................ 453 12 44 142 115 105 24 6 5 0 0

D e p o sits................................... 5,766,599 5,014 67,882 484,286 831,253 1,555,440 902,409 389,984 1,530,331 0 0

Nevada

Banks ........................................ 8 0 0 0 0 1 1 1 4 1 0

D e p o sits................................... 1,752,424 0 0 0 0 13,969 38,885 79,676 814,598 805,296 0

New Hampshire

Banks ........................................ 82 2 1 20 13 31 10 3 2 0 0

D e p o sits................................... 1,504,075 868 1,290 74,528 96,079 492,585 359,723 232,436 246,566 0 0

New Jersey

Banks ........................................ 218 0 4 6 22 57 48 32 41 6 2

D e p o sits................................... 20,882,387 0 5,848 19,707 164,753 1,034,063 1,638,819 2,069,555 9,602,777 4,162,910 2,183,955

New M exico

Banks ........................................ 77 1 0 5 8 39 14 7 3 0 0

D e p o sits................................... 2,650,842 0 0 18,073 65,071 625,659 510,277 467,819 963,943 0 0

202 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
New Y o rk

Banks ........................................ 308 7 2 23 31

D e p o s its ................................... 137,847,944 293 3,298 77,276 247,685

N orth C arolina

Banks ........................................ 92 0 1 11 17

D e p o sits ................................... 1 1,952,870 0 1,702 42,732 126,123

N o rth Dakota

Banks ........................................ 171 2 2 30 63

D e p o s its ................................... 2 ,499,552 1,440 3,150 113,172 450,906

Ohio

B a n k s ........................................ 498 0 6 40 90

D e p o sits................................... 29,648,649 0 10,414 155,859 671,769

Oklahoma

B a n k s ........................................ 460 5 21 121 108

D e p o sits ................................... 9,216,021 3,139 32,851 420,621 776,488

Oregon

B a n k s ........................................ 49 1 0 8 8

D e p o s its ................................... 5,650,673 289 0 30,591 62,167

Pennsylvania

Banks ........................................ 406 4 2 19 56

D e p o s its ................................... 42,67 7,4 6 7 234 3,010 72,827 416,189

Rhode Island

B a n k s ........................................ 16 1 0 1 3

D e p o s its ................................... 3 ,190,890 573 0 3,390 24,799

S outh Carolina

Banks ........................................ 89 0 2 14 27

D e p o s its ................................... 3 ,867,270 0 3,731 46,115 199,337

South D akota

Banks ........................................ 158 0 2 48 51

D e p o s its ................................... 2 ,614,052 0 3,494 177,600 338,657

Tennessee

B a n k s ........................................ 337 3 12 43 79

D e p o s its ................................... 12,309,590 1,200 20,293 155,015 583,384

Texas

B a n k s ........................................ 1,313 14 51 222 287

D e p o s its................................... 42,530,431 9,598 79,433 779,304 2,086,857

Utah

Banks ........................................ 55 4 1 8 14

D e p o sits................................... 2,958,597 2,447 1,787 26,907 96,118

V e rm o n t

B a n k s ........................................ 34 1 1 2 7

D e p o sits................................... 1,237,236 0 1,762 6,675 56,259

64 53 47 58 5 18

1,086,133 1,903,618 3,446,774 13,850,841 3,186,182 114,045,844

26 13 9 10 1 4

414,515 447,257 589,518 2,119,698 922,544 7,288,781

55 10 8 1 0 0

841,886 342,802 492,571 253,625 0 0

174 92 50 33 9 4

2,822,006 3,251,605 3,446,468 6,168,979 6,325,405 6,796,144

136 51 9 5 4 0

2,110,726 1,826,002 591,014 785,321 2,669,859 0

14 9 4 3 0 2

236,987 300,830 263,465 551,315 0 4,205,029

141 83 46 41 6 8

2,359,043 2,918,100 3,215,667 9,057,687 4,861,320 19,773,390

4 1 2 1 2 1

54,951 36,024 178,534 104,978 1,423,236 1,364,405

23 15 1 6 1 0

335,074 503,003 56,310 1,919,187 804,513 0

37 14 2 4 0 0

543,124 516,463 150,927 883,787 0 0

116 53 17 9 5 0

1,936,652 1,876,925 1,109,223 2,209,193 4,417,705 0

445 172 64 49 5 4

7,185,386 5,978,512 4,643,941 9,980,320 3,650,269 8,136,811

16 4 1 5 2 0

244,800 137,084 67,510 1,064,340 1,317,604 0

13 3 3 4 0 0

207,237 104,048 183,898 677,357 0 0

NUMBER OF BANKS AND BRANCHES 203

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 105. NUMBER AND DEPOSITS OF A LL COMMERCIAL BANKS1 IN THE UNITED STATES (STATES AND OTHER AREAS),

D E C E M B E R 3 1 , 1 9 7 4 -C O N T IN U E D 

BANKS GROUPED BY DEPOSIT SIZE AND STATE 

(Amounts 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 b illio n

$1 b illio n 

or 

more

Virginia

Banks ........................................ 288 6 8 39 45 98 49 19 20 2 2

D e p o s its ................................... 13,083,867 4,014 11,953 131,867 340,345 1,681,642 1,732,521 1,406,321 3,985,422 1,342,956 2,446,826

Washington

Banks ........................................ 93 3 5 18 16 28 10 4 5 2 2

D e p o s its ................................... 8,789,744 708 7,394 67,500 123,797 442,750 372,564 315,971 1,272,388 1,416,076 4,770,596

West Virginia

Banks ........................................ 214 2 3 19 51 84 33 17 5 0 0

D e p o sits................................... 4,979,614 1,522 5,045 69,036 395,953 1,381,887 1,138,026 1,210,954 777,191 0 0

Wisconsin

B a n k s ........................................ 625 6 8 104 154 233 73 34 11 1 1

D e p o s its ................................... 13,950,916 658 11,795 386,060 1,148,939 3,793,597 2,389,039 2,357,491 1,842,104 603,136 1,418,097

W yoming

Banks ........................................ 74 1 1 12 14 29 12 3 2 0 0

D e p o s its ................................... 1,421,772 418 1,607 42,141 103,985 467,493 391,929 158,941 255,258 0 0

Other areas

Guam

Banks ........................................ 1 0 0 0 0 0 1 0 0 0 0

D e p o sits................................... 29,654 0 0 0 0 0 29,654 0 0 0 0

Puerto Rico

Banks ........................................ 14 0 0 1 0 0 4 3 4 2 0

D e p o s its ................................... 2,824,175 0 0 3,089 0 0 147,575 223,493 995,762 1,454,256 0

Virgin Islands

Banks ........................................ 0 0 8 0 0 1 2 2 0 2 1

D e p o sits................................... 281,084 0 0 4,489 16,212 31,090 0 119,904 109,389 0 0

1 Excludes data fo r branches in U.S. te rrito rie s and tru st te rrito rie s o f banks headquartered in the United States and fo r 19 insured branches, in New Y o rk , o f 3 insured nonm em ber banks in Puerto Rico. Includes nondeposit 

tru st companies.

204 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
ASSETS AND L IA B ILIT IE S OF BANKS 

Table 106. Assets and liabilities of all commercial banks in the United States (States and other areas) June

30, 1974

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, 1974 

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, 1974, and December 31, 1974 

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, 1964, 1970-1974 

Table 110. Assets and liabilities of insured mutual savings banks in the United States (States and other 

areas), December call dates, 1964, 1970-1974 

Table 111. Percentages of assets and liabilities of insured commercial banks operating throughout 1974 in 

the United States (States and other areas), December 31, 1974 

Banks grouped by amount o f deposits

Table 112. Percentages of assets and liabilities of insured mutual savings banks operating throughout 1974 

in the United States (States and other areas), December 31,1974 

Banks grouped by amount o f deposits

Table 113. D istribution of insured commercial banks in the United States (States and other areas), 

December 31, 1974

Banks grouped according to amount o f deposits and by ratios o f selected items to assets or

deposits

Commercial banks

Before 1969, statem ents o f assets and lia bilities were subm itted by in ­

sured com m ercial banks on either a cash or an accrual basis, depending upon 

the bank's m e thod o f bookkeeping. In 1969, insured com m ercial banks 

having resources o f $50 m illio n or m ore, and beginning in 1970, $25 m illio n 

or m ore, were required to re p o rt th e ir assets and liabilities on the basis o f 

accrual accounting. Where the results are no t significantly d iffe re n t, p a rtic ­

ular accounts may be reported on a cash basis. Banks not subject to fu ll 

accrual accounting are required to re port the instalm ent loan fu n ctio n on an 

accrual basis, or else to su b m it a statem ent o f unearned incom e on instalm ent loans carried in surplus accounts. A ll banks are required to re port

incom e taxes on an accrual basis.

Since 1969, all m a jo rity-o w n e d premises subsidiaries are fu lly consolidated; oth er m a jo rity-o w n e d dom estic subsidiaries (b ut no t com m ercial bank 

subsidiaries) are consolidated if the y meet any o f the fo llo w in g criteria : (a) 

any subsidiary in w hich the parent bank's investm ent represents 5 percent or 

more o f its e q u ity capital accounts; (b) any subsidiary whose gross operating 

revenues am ount to 5 percent or m ore o f the parent bank's gross operating 

revenues; or (beginning in December 1972) (c) any subsidiary whose " I n ­

com e (loss) before incom e taxes and securities gains or losses" am ounts to 5 

percent or more o f the "In co m e (loss) before incom e taxes and securities

ASSETS AND LIA B ILIT IE S OF BANKS 205

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
gains o r losses" o f th e pa rent bank. B eginning in 1972, investm ents in subsidiaries n o t consolidated in w hich th e ba nk d ire c tly or in d ire c tly exercises 

effective c o n tro l are reported on an e q u ity (rather than cost) basis w ith the 

investm ent and undivide d p ro fits adjusted to include the parent's share o f 

the subsidiaries' net w o rth .

In th e case o f insured banks w ith branches outside the 50 States, net 

am ounts due fro m such branches are included in "O th e r assets," and net 

am ounts due to such branches are included in "O th e r lia b ilitie s ." Branches 

o f insured banks outside the 50 States are treated as separate entities b u t are 

not included in the c o u n t o f banks. Data fo r such branches are no t included 

in the c o u n t o f banks. Data fo r such branches are n o t included in the figures 

fo r the States in w hich the parent banks are located.

P rior to 1969, securities held b y com m ercial banks were reported net o f 

valua tio n reserves; to ta l loans were re ported bo th gross (before deductions 

fo r reserves) and net, the la tte r included in "T o ta l assets." Beginning in 

1969, loans and securities are shown on a gross basis in "T otal assets" o f 

com m ercial banks. A ll reserves on loans and securities, including the reserves 

fo r bad debts set up pursuant to Internal Revenue Service rulings, are in ­

cluded in "Reserves on loans and se cu ritie s" on the lia b ility side o f the 

balance sheet.

Individual loan item s are reported gross. Instalm ent loans, however, are 

o rd in a rily reported net if the instalm e nt paym ents are applied dire ctly to the 

re duction o f the loan. Such loans are reported gross if, under con tract, the 

paym ents do n o t im m e dia tely reduce the unpaid balances o f the loan b u t are 

assigned or pledged to assure repaym ent a t m a tu rity .

The category "T ra d in g acco unt secu ritie s" was added to the co n d itio n 

re port o f com m ercial banks in 1969 to o b ta in this segregation fo r banks tha t 

regularly deal in securities w ith oth er banks or w ith the public. Banks 

occasionally h o ld in g securities purchased fo r possible resale re port these 

under "In v e s tm e n t se cu ritie s."

Assets and lia b ilitie s held in o r adm inistered b y a savings, bond, insurance, real estate, foreign, o r any o th e r d e p a rtm e n t o f a bank, except a tru st 

de partm ent, are consolidated w ith the respective assets and lia bilities o f the 

com m ercial departm ent. "D ep osits o f individuals, partnerships, and corporatio n s " include tru s t funds deposited b y a tru s t de partm ent in a com m ercial 

or savings departm ent. O ther assets held in tru s t are not included in statements o f assets and lia b ilitie s.

Demand balances w ith , and dem and deposits due to , banks in the U nited 

States, except private banks and A m erican branches o f foreign banks, exclude reciprocal in te rb a n k deposits. (R eciprocal interbank deposits arise 

when tw o banks m a in tain deposit accounts w ith each oth er.)

Asset and lia b ility data fo r noninsured banks are tabulated fro m reports 

pertaining to the individual banks. In a fe w cases, these reports are n o t as

detailed as those sub m itted by insured banks.

A d d itio n a l data on assets and lia bilities o f all banks as o f June 30, 1974 

and December 31, 1974, are shown in the C orp ora tio n's semiannual publication Assets and Liabilities—Commercial and Mutual Savings Banks.

Mutual savings banks

E ffective December 31, 1971, the Reports o f C o n d itio n and Income fo r 

m utual savings banks were revised. A m ong the changes was a re quirem ent fo r 

consolidating the accounts o f branches and subsidiaries w ith the parent 

bank, on a com parable basis w ith com m ercial bank reports (see above). A 

1972 revision broadened the crite ria fo r consolidated re portin g; it also provided fo r the re portin g o f investm ents in unconsolidated subsidiaries on an 

eq uity basis, com parable w ith com m ercial bank reporting.

One objective o f the revisions in 1971 was to provide a sim p lifie d re p o rting fo rm . To this end, the schedules fo r deposits and securities were condensed and sim p lifie d .

Several changes were made in the reportin g o f specific items. Loans are 

reported in som ew hat m ore detail than fo rm e rly . In real estate loans, constru ctio n loans are shown separately, and loans secured b y residential p ro p ­

erties are detailed as to those secured b y 1- to 4 -fa m ily properties and by 

m u ltifa m ily (5 or m ore) properties.

A n o th e r im p o rta n t change shifted various reserve accounts w hich had 

been carried as deductions against assets (about $200 m illio n in 1971) into 

the surplus accounts. Figures fo r earlier years in table 110 have been revised 

in order to provide c o m p a ra b ility w ith the 1971-1974 data.

Beginning June 30, 1972, m utual savings banks w ith total resources o f 

$25 m illio n o r m ore are required to prepare Reports o f C on d itio n on the 

basis o f accrual accounting. A ll banks, irrespective o f size, are required to 

report incom e taxes on an accrual basis.

Foreign assets of banks

Since June 30, 1974, a consolidated statem ent o f dom estic and foreign 

assets and lia bilities o f U.S. banks has been published sem iannually by the 

C orporation in "Assets and L ia b ilitie s— Com m ercial and M utual Savings 

B anks." On December 31, 1974, the consolidated assets o f insured com m ercial banks totale d $1,046 .0 b illio n , com pared to dom estic assets o f $912.5 

b illio n (see table 107). The 142 insured com m ercial banks w hich reported 

foreign operations held consolidated assets o f $578.4 b illio n .

Sources of data

Insured banks: see p. 229; noninsured banks: State banking a u thorities; 

and reports fro m individual banks.

206 FEDERAL DEPOSIT INSURANCE C O R P O R A T IO N

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 106. ASSETS AND LIA B ILITIE S OF A LL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE 30, 1974 

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 Total

Total

Members of 

Federal Reserve System

N o t 

members 

o f F.R. 

System

T otal

Banks

o f

d eposit1

N ondeposit

trust

Total N ational State companies2

T otal assets.............................................................................................................. 891,956,328 877,777,732 695,247,286 519,351,008 175,896,278 182,530,446 14,178,596 13,667,652 510,944

Cash, balances w ith o th er banks, and cash item s in process

o f c o lle c tio n -to ta l .....................................................................................

Currency and c o in .......................................................................................

Reserve w ith Federal Reserve banks (m em ber banks) ....................

Demand balances w ith banks in U.S. (except Am erican

branches o f foreign b a n k s ).................................................................

O ther balances w ith banks in U nited States .....................................

Balances w ith banks in foreign c o u n trie s .............................................

Cash item s in process o f c o lle ctio n .......................................................

127,217,155

8,430,237

30,151,574

31,962,051

2,752,081

1,472,138

52,449,074

124,167,454

8,395,754

30,151,574

29,902,044

2,302,183

1,060,096

52,355,803

109,122,518

6,258,589

3 0,151,574

19,737,249

1,299,088

900,566

50,775,452

73,854,417

4,841,494

22,979,089

13,108,402

1,049,373

572,301

31,303,758

35,268,101

1,417,095

7,172,485

6,628,847

249,715

3 28,265

19,471,694

15,044,936

2,137,165

0

10,164,795

1,003,095

159,530

1,580,351

3,049,701

34,483

0

2,060,007

449,898

412,042

93,271

2,946,693

33,754

0

1,974,851

432,982

412,017

93,089

103,008

729

0

85,156

16,916

25

182

S e c u ritie s -to ta l ..................................................................................................

U.S. Treasury s e c u ritie s .............................................................................

O bligations o f o th e r U.S. G overnm ent agencies and c o rp s ............

O bligations o f States and politica l s u b d iv is io n s ................................

O ther s e c u ritie s ............................................................................................

190,793,820

52,534,762

31,417,708

100,405,140

6,436,210

188,998,775

52,188,524

31,055,790

99,566,845

6,187,616

135,357,593

35,937,353

20,523,494

74,484,651

4,412,095

104,701,721

27,634,230

16,208,406

57,421,813

3,437,272

30,655,872

8,303,123

4 ,315,088

17.062,838

9 74,823

53,641,182

16,251,171

10,532,296

25,082,194

1,775,521

1,795,045

346,238

361,918

838,295

248,594

1,582,875

334,772

358,719

710,026

179,358

212,170

11,466

3,199

128,269

69,236

Investm ent securities— t o t a l ......................................................................

U.S. Treasury securities......................................................................

Obligations of other U.S. Government agencies and corps . . .

Obligations of States and political subdivisions.........................

Other securities.....................................................................................

184,421,129

51,827,972

29,943,010

96,483,283

6,166,864

182,627,891

51,483,541

29,581,092

95,644,988

5,918,270

129,076,094

35,246226

19,061,414

70,609,091

4,159,363

99,662,419

26,789,650

15,015,804

54,608,505

3,248,460

29,413,675

8,456,576

4,045,610

16,000,586

910,903

53,551,797

16237,315

10,519,678

25,035,897

1,758,907

1,793,238 

344,431

361,918

838295

248,594

1,581,106

333,003

358,719

710,026

179,358

212,132

11,428

3,199

128269

69,236

Trading account s e c u ritie s -to ta l............................................................

U.S. Treasury securities......................................................................

Obligations of other U.S. Government agencies and corps . . .

Obligations of States and political subdivisions.........................

Other securities.....................................................................................

6,372,691

706,790

1,474,698

3,921,857

269,346

6,370,884

704,983

1,474,698

3,921,857

269,346

6,281,499

691,127

1,462,080

3,875,560

252,732

5,039,302

844,580

1,192,602

2,813,308

188,812

1,242,197

153,453

269,478

1,062252

63J920

89,385

13,856

12,618

46297

16,614

1.807

1.807

0

0

0

1.769

1.769

0

0

0

38

38

0

0

0

Federal funds sold and securities purchased under agreements

to re s e ll-to ta l ........................................................................................

W ith dom estic com m ercial banks............................................................

W ith brokers and dealers in securities....................................................

W ith o th e r s ....................................................................................................

35,355,397

31,648,469

2,657,720

1,049,208

33,274,049

29,567,121

2,657,720

1,049,208

25,377,328

21,783,509

2,628,180

965,639

20,408,067

17,174,679

2,485,482

747,906

4,969,261

4,608,830

142,698

217,733

7,896,721

7,783,612

29,540

83,569

2.081.348

2.081.348 

0 

0

2.057.878

2.057.878 

0 

0

23.470

23.470 

0 

0

ASSETS AND LI ABI LITI ES OF BANKS 207

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 106. ASSETS AND L IA B ILIT IE S OF A LL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JU N E 3 0 , 1 9 7 4 — 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 T otal

Total

Members of 

Federal Reserve System

N ot 

members 

o f F.R. 

System

T otal

Banks

of

deposit1

N ondeposit

tru s t

Total National State com panies2

Other lo a n s-to ta l........................................................................ 498,559,443 492,040,464 391,933,536 295,170,829 96,762,707 100,106,928 6,518,979 6,472,845 46,134

Real estate lo a n s - t o t a l............................................................................. 127,320,100 126,990,955 92,626,904 72,446,477 20,180,427 34,364,051 329,145 313,560 15,585

Secured by farm land........................................................................... 5,828,439 5,807,663 2,598,627 2,096,696 501,931 3209,036 20,776 20274 502

Secured by residential properties:

Secured by 1 - to 4 - family residential properties:

Insured by Federal Housing Administration.................... 6,563,349 6,515,426 5,535,192 4,619,765 915,427 980234 47,923 47,894 29

Guaranteed by Veterans Administration......................... 3,394,833 3,345,411 2,856,394 2,373,667 482,727 489,017 49,422 49,384 38

Not insured or guaranteed by FHA or V A ....................... 62,295,134 62,172,660 44,900,666 35,937,736 8,962230 17,271 J) 94 122,474 113,674 8,800

Secured by multi family (5 or more) residential properties:

Insured by Federal Housing Administration.................... 1,082,221 1,064,700 953,558 629,731 323,827 111,142 17,521 17,521 0

Not insured by F H A ............................................................... 6^30,231 6,228,627 5,076,170 3,428,308 1,647,862 1,152,457 1,604 1,604 0

Secured by other properties............................................................... 41225,893 41,856,468 30,706,297 23,360,574 7,345,723 11,150,171 69,425 63,209 6,216

Loans to dom estic com m ercial and foreign b a n k s ............................ 13,257,450 11,253,600 10,820,138 6,307,424 4 ,512,714 433,462 2,003,850 2,003,850 0

Loans to o ther financial in s titu tio n s ..................................................... 33,696,380 33,547,042 32,028,003 21,477,956 10,550,047 1,519,039 149,338 149,338 0

Loans to brokers and dealers in s e c u ritie s ........................................... 5,317,701 5,294,807 5,176,299 2,485,109 2,691,190 118,508 22,894 22,464 430

O ther loans fo r purchasing cr carrying s e c u ritie s .............................. 4,230,491 4,179,386 3,533,220 2,737,786 795,434 646,166 51,105 47,771 3,334

Loans to farm ers (excluding loans on real estate) ............................ 18,454,811 18,432,512 10,888,926 9,426,025 1,462,901 7,543,586 22,299 21,705 594

Com m ercial and industrial loans (incl. open m arket p a p e r).......... 179,012,686 175,813,391 150,025,433 111,636,186 38,389,247 25,787,958 3,199,295 3,182,958 16,337

Loans to in d iv id u a ls -to ta l......................................................................... 103,454,759 102,933,424 74,480,601 59,608,887 14,871,714 28,452,823 521,335 517,873 3,462

Passenger automobile instalment loans............................................. 34,108,640 33,833,341 23,064,498 19,172,423 3,892,075 10,768,843 275,299 273,897 1,402

Credit cards and related plans:

Retail (charge account) credit card p la n s .............................. 7,061,712 7,061,570 6,334,485 5,058,940 1,275,545 727,085 142 142 0

Check credit and revolving credit plans................................... 2,453,063 2,452,989 2,085,743 1,323,766 761J977 367,246 74 74 0

Other retail consumer instalment loans:

Mobile homes, not including travel trailers............................ 8,849,500 8,847,488 6,398,859 5,388,451 1,010,408 2,448,629 2,012 2,012 0

Other retail consumer goods....................................................... 6,689,195 6,655,768 4,495,580 3,839,497 656,083 2,160,188 33,427 33,185 242

Residential repair and modernization instalment loans............. 5,238,166 5,228,451 3,797,680 3,025,243 772,437 1,430,771 9,715 9,574 141

Other instalment loans for personal expenditures....................... 15,297,908 15,185,634 10,488,258 8,229,801 2,258,457 4,697,376 112,274 111,564 710

Single-payment loans for personal expenditures......................... 23,756,575 23,668,183 17,815,498 13,570,766 4,244,732 5,852,685 88,392 87,425 967

A ll o ther loans (in cluding overdrafts) ............................................. 13,815,065 13,595,347 12,354,012 9,044,979 3,309,033 1,241,335 219,718 213,326 6,392

Total loans and securities................................................... 724,708,660 714,313,288 552,668,457 420,280,617 132,387,840 161,644,831 10,395,372 10,113,598 281,774

Bank premises, fu rn itu re and fixtures, and other assets

representing bank premises ............................................................... 13,642,596 13,578,645 10,404,191 8,381,181 2,023,010 3,174,454 63,951 46,724 17,227

Real estate owned other than bank p rem ises...................................... 606,864 591,451 423,659 248,270 175,389 167,792 15,413 4,017 11,396

Investm ents in subsidiaries not c o n s o lid a te d ...................................... 1,594,678 1,586,242 1,568,109 1,224,764 343,345 18,133 8,436 7,719 717

Customers' lia b ilitie s on acceptances o u ts ta n d in g ............................ 6,659,903 6,504,948 6,250,451 4,053,645 2,196,806 254,497 154,955 154,955 0

Other assets ................................................................................................. 17,526,472 17,035,704 14,809,901 11,308,114 3,501,787 2,225,803 490,768 393,946 96,822

208 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T otal 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 rp o ra tio n s -tim e ......................

Savings deposits..............................................................................

Deposits accumulated for payment of personal loans____

Other deposits of individuals, partnerships, and corps . . .

C ertified and office rs' checks, letters o f credit, travelers' 

checks, etc..........................................................................................

G overnm ent d e p o s its -to ta l......................................................................

United 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 p o litica l subdivisions-dem and ...................................

States and p o litica l subdivisions— t i m e ..........................................

Dom estic interbank d e p o s its - to ta l.......................................................

Commercial banks in the United S ta te s -d e m a n d ......................

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 the 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 b a n ks-d e m a n d ..............................

Foreign governm ents, central b a n k s - tim e ...................................

Banks in foreign c o u n trie s -d e m a n d ...............................................

Banks in foreign c o u n trie s -tim e ....................................................

T otal d e p o s its ...........................................................................

Demand................................................................................

Time.......................................................................................

Miscellaneous lia b ilitie s— t o t a l .................................................................

Federal funds purchased and securities sold under

agreements to re p u rc h a s e ............................................................

O ther 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 .....................................................................................

Total lia b ilitie s .........................................................................

M in o rity interest in consolidated subsidiaries ...................................

Reserves on loans and se c u ritie s -to ta l ...............................................

Reserve fo r bad debt losses on loans .............................................

O ther reserves on loans........................................................................

Reserves on se cu ritie s...........................................................................

891,956,328 877,777,732 695,247,286 519,351,008 175,896,278 182,530,446 14,178,596 13,667,652 510,944

576,492,652 572,500,107 435,381,375 334,829,471 100,551,904 137,118,732 3,992,545 3,954,527 38,018

217,493,672 216,528,441 166,231,514 128,132,853 38,098,661 50,296,927 965,231 929,540 35,691

343,825,574 341,858,405 256,930,393 199,739,054 57,191,339 84,928,012 1,967,169 1,966,906 263

134,098,249 133,769,748 96,671,984 76,310,317 20,361,667 37,097,764 328,501 328,500 1

460,688 456,793 329,715 265,127 64,588 127,078 3,895 3,893 2

209,266,637 207,631,864 159,928,694 123,163,610 36,765,084 47,703,170 1,634,773 1,634,513 260

15,173,406 14,113,261 12,219,468 6,957,564 5,261,904 1,893,793 1,060,145 1,058,081 2,064

76,471,187 76,118,978 56,589,425 44,361,474 12,227,951 19,529,553 352,209 350,240 1,969

8,395,306 8,373,819 6,629,021 5,042,838 1,586,183 1,744,798 21,487 19,519 1,968

448,935 446,772 334,324 256,665 77,659 112,448 2,163 2,163 0

19,657,515 19,504,002 14,313,342 10,896,480 3,416,862 5,190,660 153,513 153,513 0

47,969,431 47,794,385 35,312,738 28,165,491 7,147,247 12,481,647 175,046 175,045 1

44,094,834 42,729,884 40,987,095 22,001,615 18,985,480 1,742,789 1,364,950 1,364,950 0

34,624,839 33,596,478 32,594,413 16,692,509 15,901,904 1,002,065 1,028,361 1,028,361 0

7,683,161 7,479,778 6,833,382 4,395,346 2,438,036 646,396 203,383 203,383 0

1,298,368 1,185,695 1,102,668 634,063 468,605 83,027 112,673 112,673 0

488,466 467,933 456,632 279,697 176,935 11,301 20,533 20,533 0

18,455,960 16,901,543 16,366,805 8,686,232 7,680,573 534,738 1,554,417 1,553,915 502

1,698,629 1,534,325 1,514,075 601,052 913,023 20,250 164,304 163,802 502

9,627,229 8,866,570 8,691,527 4,969,328 3,722,199 175,043 760,659 760,659 0

6,134,714 5,788,623 5,532,550 2,777,931 2,754,619 256,073 346,091 346,091 0

995,388 712,025 628,653 337,921 290,732 83,372 283,363 283,363 0

715,514,633 708,250,512 549,324,700 409,878,792 139,445,908 158,925,812 7,264,121 7,223,632 40,489

304,476,449 300,624,644 240,137,051 171,735,290 68,401,761 60,487,593 3,851,805 3,811,580 40,225

411,038,184 407,625,868 309,187,649 238,143,502 71,044,147 98,438,219 3,412,316 3,412,052 264

106,449,830 100,273,062 92,429,213 69,668,538 22,760,675 7,843,849 6,176,768 5,913,487 263,281

57,168,613 56,087,413 53,652,144 41,808,017 11,844,127 2,435,269 1,081,200 1,081,200 0

10,620,383 9,590,369 9,183,983 6,315,207 2,868,776 406,386 1,030,014 1,014,410 15,604

1,204,774 1,201,273 1,003,040 399,306 603,734 198,233 3,501 1,734 1,767

6,930,726 6,765,142 6,510,555 4,112,901 2,397,654 254,587 165,584 165,584 0

30,525,334 26,628,865 22,079,491 17,033,107 5,046,384 4,549,374 3,896,469 3,650,559 245,910

821,964,463 808,523,574 641,753,913 479,547,330 162,206,583 166,769,661 13,440,889 13,137,119 303,770

4,362 3,524 1,066 1,047 19 2,458 838 0 838

8,035,205 8,003,229 6,536,598 4,826,659 1,709,939 1,466,631 31,976 31,820 156

7,728,352 7,701,057 6,348,135 4,692,382 1,655,753 1,352,922 27,295 27,196 99

136,209 135,754 78,632 64,619 14,013 57,122 455 428 27

170,644 166,418 109,831 69,658 40,173 56,587 4,226 4,196 30

ASSETS AND LIABl LITIES OF BANKS 209

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 106. ASSETS AND LIA B ILIT IE S OF A LL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JU N E 3 0 , 1 9 7 4 — 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

Assets, lia b ility , or capital account item T o ta l

Total

Members of 

Federal Reserve System

N ot 

members 

o f F.R. 

System

T otal

Banks

o f

d eposit1

N ondeposit

tru st

Total N ational State com panies2

Capital a c c o u n ts -to ta l .............................................................................. 61,952,298 61,247,405 46,955,709 34,975,972 11,979,737 14,291,696 704,893 498,713 206,180

Capital notes and d e b e n tu re s ............................................................ 4,415,492 4,237,792 3,419,240 2,300,520 1,118,720 818,552 177,700 177,605 95

E q u ity c a p ita l-to ta l ........................................................................... 57,536,806 57,009,613 43,536,469 32,675,452 10,861,017 13,473,144 527,193 321,108 206,085

Preferred sto ck................................................................................ 63,844 58,671 40,994 30,514 10,480 17,677 5,173 4,839 334

Common sto ck................................................................................ 14,588,571 14,485,734 10,886,717 8296,182 2,590,535 3,599,017 102,837 55,358 47,479

Surplus ............................................................................................... 24,503,503 24,354,805 18,659,846 13,682,733 4,977,113 5,694,959 148,698 116,079 32,619

Undivided p ro fits ........................................................................... 17,455,913 17,252,505 13,333,159 10,189,838 3,143,321 3,919,346 203,408 89,039 114,369

Reserve for contingencies and other capital reserves.......... 924,975 857,898 615,753 476,185 139,568 242,145 67,077 55,793 11,284

PER C E N TA G E S

Of to ta l assets:

Cash and balances w ith o ther banks ..................................................... 14.3% 14.1% 15.7% 14.2% 20.1% 8.2% 21.5% 21.6% 20.2%

U.S. Treasury securities and obligations o f o ther U.S. G overnm ent 

agencies and co rporations ................................................................. 9.2 9.2 7.8 8.0 7.1 14.7 5.0 5.1 2.9

O ther s e c u ritie s ............................................................................................. 12.2 12.3 11.7 12.1 10.3 14.7 7.7 6.5 38.7

Loans (in cluding federal funds sold and securities

purchased under agreements to r e s e ll;........................................... 59.9 59.8 60.0 60.8 57.8 59.2 60.7 62.4 13.6

O ther assets.................................................................................................... 4.5 4.5 4.8 4.9 4.7 3.2 5.2 4.4 24.7

T otal capital accounts3 ............................................................................. 7.0 7.0 6.8 6.8 6.8 7.8 12.9 9.5 40.4

Of to ta l assets other than cash and U.S. Treasury securities:

Total capital accounts3 ............................................................................. 8.8 8.8 8.6 8.4 9.1 9.5 15.04 10.84 52.0

Num ber o f banks ............................................................................................... 14,360 14,120 5,763 4,695 1,068 8,357 240 168 72

11ncludes asset and lia b ility figures fo r branches of foreign banks (tabulated as banks) licensed to do a deposit business. Capital is not allocated to these branches by the parent banks.

2A m ounts shown as deposits are special accounts and uninvested tru s t funds, w ith the latter classified as demand deposits o f individuals, partnerships, and corporations.

3 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 of the 50 States; because no capital is allocated to these branches, they are excluded fro m the com putation of 

ratios o f capital accounts to assets.

4 Data fo r branches o f foreign 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 columns.

N ote: Further in fo rm a tio n on the reports o f assets and lia b ilitie s o f banks may be found on pp. 205-206.

210 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 107. ASSETS AND LIA B ILITIE S OF A LL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

D E C E M B E R 3 1 , 1 97 4 

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 Total

Total

Members o f 

Federal Reserve System

N o t 

members 

o f F.R. 

System

T otal

Banks

o f

deposit1

Nondeposit

tru st

T otal National State companies2

T otal assets........................................................................................................... 927,485,605 912,529,261 718,957,185 537,274,573 181,682,612 193,572,076 14,956,344 14,481,974 474,370

Cash, balances w ith o th e r banks, and cash item s in process of

c o lle c t io n - t o t a l.............................................................................

Currency and c o i n ................................................................................

Reserve w ith Federal Reserve banks (m em ber b a n ks)...............

Demand balances w ith banks in U.S. (except Am 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 trie s .....................................

Cash item s in process o f c o lle c tio n ..................................................

128,841,854

11,759,998

27,118,296

36,201,232

4,405,361

1,898,598

47,458,369

126,081,191

11,727,595

27,118,296

34,414,497

4,090,428

1,449,086

47,281,289

107,126,236

8,868,049

27,118,296

21,714,176

2,607,156

1,173,584

45,644,975

76,653,262

6,845,052

21,100,169

15,256,842

2,177,985

709,653

30,563,561

30,472,974

2,022,997

6,018,127

6,457,334

429,171

463,931

15,081,414

18,954,955

2,859,546

0

12,700,321

1,483,272

275,502

1,636,314

2,760.663

32,403

0

1,786,735

314,933

449,512

177,080

2,676,208

31,066

0

1,725,580

296,380

449,490

173,692

84,455

1,337

0

61,155

18,553

22

3,388

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 corps . . .

O bligations o f States and p o litica l subdivisions .........................

O ther s e c u ritie s ..................................................................................

195,934,814

54,799,687

32,905,085

100,962,097

7,267,945

193,902,967

54,416,710

32,439,312

100,161,606

6,885,339

139,062,948

38,927,368

20,858,622

74,322,181

4,954,777

107,035,815

29,081,381

16,788,544

57,330,416

3,835,474

32,027,133

9,845,987

4,070,078

16,991,765

1,119,303

54,840,019

15,489,342

11,580,690

25,839,425

1,930,562

2,031,847

382,977

465,773

800,491

382,606

1,841,363

372,642

458,586

698,987

311,148

190,484

10,335

7,187

101,504

71,458

Investm ent s e c u ritie s -to ta l..............................................................

U.S. Treasury securities ..............................................................

Obligations of other U.S. Government agencies and corps.

Obligations o f States and political subdivisions....................

Other securities................................................................................

187,945,321

52,251,301

31,553,114

97,591,851

6,549,055

185,919,136

51,873,986

31,087,341

96,791,360

6,166,449

131,147,427

36,406,282

19,511,133

70,985,460

4,244,552

101,655,948

27,440,982

15,828230

55,060,602

3,326,134

29,491,479

8,965,300

3,682J903

15,924,858

918,418

54,771,709 

15,467,704

11,576208

25,805,900

1 £21,897

2,026,185

377,315

465,773

800,491

382,606

1,835,709 

366£88

458,586

698,987

311,148

190,476

10,327

7,187

101,504

71,458

Trading account s e c u ritie s -to ta l....................................................

U.S. Treasury securities..............................................................

Obligations of other U.S. Government agencies and corps.

Obligations of States and political subdivisions .................

Other securities .............................................................................

7,989,493 

2,548,386

1,351 £ 71

3,370,246

718,890

7,983,831

2,542,724

1,351,971

3,370,246

718,890

7,915,521

2,521,086

1,347,489

3,336,721

710,225

5,379,867

1,640,399

960,314

2,269,814

509,340

2,535,654

880,687

387,175

1,066,907

200,885

68,310

21,638

4,482

33,525

8,665

5.662

5.662

0

O

0

5.654

5.654

0

0

0

8

8

0

0

0

Federal funds sold and securities purchased under agreements 

to r e s e ll-to ta l..................................................................................

W ith domestic com m ercial b a n k s ....................................................

W ith brokers and dealers in se c u ritie s ............................

W ith others .......................................................................................

40,098,970

33,833,646

4,386,138

1,879,186

38,937,288

32,671,964

4,386,138

1,879,186

29,852,763

23,726,986

4,330,471

1,795,306

23,751,238

19,022,833

3,318,684

1,409,721

6,101,525

4,704,153

1,011,787

385,585

9,084,525

8,944,978

55,667

83,880

1,161,682

1,161,682

0

0

1.136.517

1.136.517 

0 

0

25.165

25.165 

0 

0

ASSETS AND LI ABI LITI ES OF BANKS 211

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 107. ASSETS AND LIA B ILIT IE S OF A L L COMMERCIAL BANKS IN THE UNITED STATES (STATE AND OTHER AREAS),

D E C E M B E R 3 1 , 1 9 7 4 -C O N T IN U E D 

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 Total

Total

Members of 

Federal Reserve System

N o t 

members 

o f F.R. 

System

T otal

Banks

o f

depo sit1

N ondeposit

tru st

Total N ational State com panies2

Other lo a n s-to ta l......................................................................... 514,242,243 506,378,800 402,175,818 299,931,553 102,244,265 104,202,982 7,863,443 7,819,105 44,338

Real estate lo a n s - t o t a l.............................................................................. 132,104,852 131,751,383 95,483,189 74,572,132 20,911,057 36,268,194 353,469 337,618 15,851

Secured by farm land............................................................................ 6,048,519 6,030,620 2,771,180 2,252^60 518 £ 2 0 3259,440 17,899 17,592 307

Secured by residential properties:

Secured by 1 - to 4 -fam ily residential properties:

Insured by Federal Housing Adm inistration.................. 6,200,357 6,154,725 5,169,777 4,298,626 871,151 9 84£48 45,632 45,603 29

Guaranteed by Veterans Administration......................... 3,237,732 3,193,583 2,706,831 2,243,723 463,108 486,752 44,149 44,111 38

Not insured or guaranteed by FHA or VA ....................... 65,319,740 65,204,281 46,773,867 37,277,473 9,496,394 18,430,414 115,459 106,884 8,575

Secured by multi family (5 or more) residential properties:

Insured by Federal Housing Adm inistration.................. 955,463 939,083 823,136 562,379 260,757 115,947 16,380 16,380 0

Not insured by F H A ............................................................... 6,663,531 6,652,445 5,441,570 3,624,003 1,817,567 1,210,875 11,086 11,027 59

Secured by other properties............................................................... 43,679,510 43,576,646 31,796,828 24,313,668 7,483,160 11,779,818 102,864 96,021 6,843

Loans to dom estic com m ercial and foreign b a n k s ......................... .. 12,388,357 10,082,525 9,563,647 5,486,741 4,076,906 518,878 2 ,305,832 2,305,814 18

Loans to o th e r financial in s titu tio n s ..................................................... 35,344,057 35,119,904 33,660,664 22,115,526 11,545,138 1,459,240 224,153 224,153 0

Loans to brokers and dealers in s e c u ritie s ........................................... 5,241,378 5,192,896 5,072,503 1,873,344 3,199,159 120,393 48,482 48,482 0

O ther loans fo r purchasing or carrying se c u ritie s .............................. 4,037,388 4,003,015 3,343,905 2,602,140 741,765 659,110 34,373 30,853 3,520

Loans to farm ers (excluding loans on real estate).............................. 18,247,645 18,225,296 10,503,917 9,122,346 1,381,571 7,721,379 22,349 21,951 398

Com m ercial and industrial loans (incl. open m arket p a p e r).......... 188,564,423 184,216,999 157,060,771 115,508,631 41,552,140 27,156,228 4,347,424 4,330,691 16,733

Loans to in d iv id u a ls -to ta l......................................................................... 104,045,254 103,714,164 74,659,158 5 9,630,454 15,028,704 29,055,006 331,090 327,803 3,287

Passenger automobile instalment loans........................................... 33,054,722 32,949,382 22,245,004 18,465,052 3,779£52 10,704,378 105,340 103£38 1,402

Credit cards and related plans:

Retail (charge account) credit card p la n s .............................. 8,329,376 8,327,292 7,443,203 6,065,401 1,377,802 884,089 2,084 2,084 0

Check credit and revolving credit plans................................... 2,§10,885 2,810,808 2,376,876 1,387,261 989,615 433,932 77 77 0

Other retail consumer instalment loans:

Mobile homes, not including travel trailers............................ 9,000,453 8,998,167 6,520,470 5,498,863 1,021,607 2,477,697 2,286 2,286 0

Other retail consumer goods........................................................ 6,546,568 6,514,415 4,313,836 3,658,215 655,621 2£00,579 32,153 31 £ 1 1 242

Residential repair and modernization instalment loans............. 5,636,834 5,625,691 4,086,682 3,273,324 813,358 1,539,009 11,143 11,002 141

Other instalment loans for personal expenditures....................... 15,599,741 15,491,334 10,640,363 8,251,808 2,388,555 4,850,971 108,407 107,697 710

Single-payment loans for personal expenditures......................... 23,066,675 22,997,075 17,032,724 13,030,530 4,002,194 5,964,351 69,600 68,808 792

A ll o th e r loans (in clu din g o ve rd ra fts )..................................................... 14,268,889 14,072,618 12,828,064 9,020,239 3,807,825 1,244,554 196,271 191,740 4,531

T otal loans and s e c u ritie s ............................................................. 750,276,027 739,219,055 571,091,529 430,718,606 140,372,923 168,127,526 11,056,972 10,796,985 259,987

212 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Bank premises, fu rn itu re and fix tu re s , and o the r assets

representing bank premises .......................................................

Real estate owned o th e r than bank p re m ise s......................................

Investm ents in subsidiaries n ot c o n s o lid a te d ......................................

C ustom ers' lia b ilitie s on acceptances o u ts ta n d in g ............................

O ther assets.....................................................................................................

T o ta l lia b ilitie s , reserves, and capital accounts ........................................

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

Savings deposits..............................................................................

Deposits accumulated for payment o f personal loans . . . . 

Other deposits of individuals, partnerships, and corps . . . 

C ertified and o ffic e rs ' checks, letters o f c re 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-de m a n d ...........................................

U nited States G o v e rn m e n t-tim e ..................................................

States and p o litic a l sub d ivisio n s-d e m a n d .................................

States and p o litic a l s u b d iv is io n s -tim e ........................................

Dom 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 ....................

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 the U nited S ta te s -tim e ....................

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 foreign c o u n trie s -d e m a n d .............................................

Banks in foreign c o u n trie s -tim e ..................................................

Total d e p o s its .........................................................................

Demand..............................................................................

Time......................................................................................

M iscellaneous lia b ilitie s - to ta l...............................................................

Federal funds purchased and securities sold under

agreements to re p u rc h a s e ..........................................................

Other lia b ilitie s fo r borrow ed m o n e y ...........................................

Mortgage indebtedness.......................................................................

Acceptances outstanding....................................................................

O ther lia b ilitie s ...................................................................................

T otal lia b ilitie s .......................................................................

M in o rity interest in consolidated subsidiaries .................................

14,362,581 14,296,959 10,810,608 8,692,884 2,117,724 3,486,351 65,622 49,944 15,678

828,552 811,080 585,300 376,895 208,405 225,780 17,472 4,105 13,367

1,763,296 1,739,054 1,722,639 1,317,318 405,321 16,415 24,242 23,332 910

10,872,745 10,653,382 10,365,650 7,038,648 3,327,002 287,732 219,363 219,363 0

20,540,550 19,728,540 17,255,223 12,476,960 4,778,263 2,473,317 812,010 712,037 99,973

927,485,605 912,529,261 718,957,185 537,274,573 181,682,612 193,572,076 14,956,344 14,481,974 474,370

608,877,244 604,637,647 458,977,022 352,177,731 106,799,291 145,660,625 4,239,597 4,214,369 25,228

237,084,209 235,984,680 181,375,322 137,870,937 43,504,385 54,609,358 1,099,529 1,074,517 25,012

360,708,875 358,273,861 269,145,299 208,622,373 60,522,926 89,128,562 2,435,014 2,434,798 216

136,578,392 136,268,612 97,768,353 77,142,783 20,625,570 38,500,259 309,780 309,780 0

389,918 386,635 274,692 236,138 38,554 111,943 3,283 328 3 0

223,740,565 221,618,614 171,102,254 131,243,452 39,858,802 50,516,360 2,121,951 2,121,735 216

11,084,160 10,379,106 8,456,401 5,684,421 2,771,980 1,922,705 705,054 705,054 0

74,589,506 74,219,736 53,899,221 43,039,157 10,860,064 20,320,515 369,770 369,733 37

4,841,521 4,821,969 3,187,624 2,441,591 746,033 1,634,345 19,552 19,516 36

509,907 500,147 351,666 273,020 78,646 148,481 9,760 9,760 0

18,863,770 18,710,659 13,155,788 10,571,668 2,584,120 5,554,871 153,111 153,111 0

50,374,308 50,186,961 37,204,143 29,752,878 7,451,265 12,982,818 187,347 187,346 1

45,972,530 45,328,505 43,338,106 26,236,287 17,101,819 1,990,399 644,025 643,925 100

35,368,582 35,101,553 33,849,811 19,969,068 13,880,743 1,251,742 267,029 266,929 100

8,758,470 8,563,604 7,914,336 5,555,129 2,359,207 649,268 194,866 194,866 0

1,362,905 1,197,332 1,121,236 497,763 623,473 76,096 165,573 165,573 0

482,573 466,016 452,723 214,327 238,396 13,293 16,557 16,557 0

24,190,861 22,227,034 21,746,052 11,708,413 10,037,639 480,982 1,963,827 1,962,881 946

2,123,900 1,882,054 1,854,650 908,451 946,199 27,404 241,846 241,410 436

12,735,060 12,078,963 11,920,468 6,593,363 5,327,105 158,495 656,097 655,587 510

6,809,475 6,339,583 6,116,446 3,055,541 3,060,905 223,137 469,892 469,892 0

2,522,426 1,926,434 1,854,488 1,151,058 703,430 71,946 595,992 595,992 0

753,630,141 746,412,922 577,960,401 433,161,588 144,798,813 168,452,521 7,217,219 7,190,908 26,311

317,538,522 314,416,936 249,117,278 180£99,440 68,117,838 65^99,658 3,121,586 3,096,002 25,584

436,091,619 431,995,986 328,843,123 252,162,148 76,680,975 103,152,863 4,095,633 4,094^06 727

101,141,270 94,147,074 85,649,400 63,091,043 22,558,357 8,497,674 6,994,196 6,739,992 254,204

52,409,710 51,224,639 48,350,668 36,322,946 12,027,722 2,873,971 1,185,071 1,185,071 0

6,141,193 4,867,119 4,505,072 3,285,509 1,219,563 362,047 1,274,074 1,249,371 24,703

728,232 724,845 510,159 366,011 144,148 214,686 3,387 1,643 1,744

11,448,900 11,226,448 10,937,743 7,143,078 3,794,665 288,705 222,452 222,452 0

30,413,235 26,104,023 21,345,758 15,973,499 5,372,259 4,758,265 4,309,212 4,081,455 227,757

854,771,411 840,559,996 663,609,801 496,252,631 167,357,170 176,950,195 14,211,415 13,930,900 280,515

5,896 5,113 2,479 2,479 0 2,634 783 0 783

ASSETS AND LIABILITIES OF BANKS 213

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 107. ASSETS AND LIA B I LIT I ES OF A L L COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

D E C E M B E R 3 1 , 1 9 7 4 -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 T otal

T otal

Members of 

Federal Reserve System

N o t 

m embers 

o f F.R. 

System

T otal

Banks

o f

d ep osit1

N ondeposit

tru s t

com panies2Total National State

Reserves on loans and s e c u ritie s -to ta l................................................... 8,724,892 8,676,953 7,090,069 5,189,328 1,900,741 1,586,884 47,939 47,806 133

Reserve fo r bad debt losses on lo a n s................................................ 8,421,406 8,376,683 6,910,291 5,065,229 1,845,062 1,466,392 44,723 44,647 76

O ther reserves on loans ....................................................................... 132,895 131,581 69,677 54,200 15,477 61,904 1,314 1,287 27

Reserves on securities ......................................................................... 170,591 168,689 110,101 69,899 40,202 58,588 1,902 1,872 30

C apital a c c o u n ts -to ta l .............................................................................. 63,983,406 63,287,199 48,254,836 35,830,135 12,424,701 15,032,363 696,207 503,268 192,939

Capital notes and d e b e n tu re s ............................................................. 4,393,260 4,259,531 3,422,557 2,257,895 1,164,662 836,974 133,729 133,634 95

E q u ity c a p ita l- to ta l.............................................................................. 59,590,146 59,027,668 44,832,279 33,572,240 11,260,039 14,195,389 562,478 369,634 192,844

Preferred sto ck................................................................................. 54,006 43,460 23,550 13,070 10,480 19,910 10,546 10212 334

Common sto ck................................................................................. 14,886,410 14,789,463 11,015,947 8,336,240 2,679,707 3,773,516 9 62 4 7 50,579 46,368

Surplus................................................................................................ 25,497,294 25,313,257 19231,446 14,067,301 5,164,145 6,081,811 184,037 152,257 31,780

Undivided p ro fits ............................................................................ 18,175,709 17,969,789 13212,001 10,652,267 3259,734 4,057,788 20522 0 9 7257 107,963

Reserve for contingencies and other capital reserves.......... 976,727 911,699 649,335 503,362 145273 262,364 65,028 58,629 6,399

P E R C E N TA G E S

O f to ta l assets:

Cash and balances w ith o th e r b a n k s ........................................................ 13.9% 13.8% 14.9% 14.3% 16.8% 9.8% 18.5% 18.5% 17.8%

U.S. Treasury securities and obligations o f o th e r

U.S. G overnm ent agencies and corp o ra tio n s ............................... 9.0 9.1 7.8 8.1 7.0 14.0 5.6 5.7 3.7

O ther s e c u ritie s ............................................................................................. 12.1 12.2 11.6 11.9 10.7 14.4 7.9 7.0 36.5

Loans (in cluding federal fu nd s sold and securities

purchased under agreements to r e s e ll)........................................... 59.8 59.8 60.1 60.2 59.6 58.5 60.3 61.8 14.7

Other assets..................................................................................................... 5.2 5.2 5.7 5.6 6.0 3.4 7.6 7.0 27.4

T otal capital accounts3 .............................................................................. 7.0 7.0 6.7 6.7 6.8 7.8 11.7 8.6 40.7

Of to ta l assets other than cash and U.S. Treasury securities:

T otal capital accounts3................................................................................. 8.7 8.7 8.4 8.3 8.7 9.5 13.54 9.94 50.8

Num ber of b a n k s ................................................................................................ 14,488 14,228 5,782 4,708 1,074 8,446 260 188 72

1 , 2 , 3 , 4 g ee notes t0 table 106.

N ote: F u rther in fo rm a tio n on the reports o f assets and lia b ilitie s o f banks may be found on pp. 205-206.

214 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 108. ASSETS AND LIA B ILIT IE S OF A L L M UTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE 30, 1974, AND DECEMBER 31, 1974 

BANKS GROUPED BY INSURANCE STATUS 

(Amounts in thousands of dollars)

Asset, lia b ility , or surplus account item

June 3 0 ,1 9 7 4 December 31, 1974

T otal Insured Noninsured T otal Insured Noninsured

T otal assets........................................................................................................................................................... 108,575,630 94,678,209 13,897.421 109.544.456 95,589,401 13,955,055

Cash, balances w ith banks, and c o lle c tio n ite m s -to ta l ................................................................ 1,701,867 1,574,068 127,799 2,192,849 2,053,353 139,496

Currency and c o i n ............................................................................................................................... 246,948 206,458 40,490 316,090 268,102 47,988

Demand balances w ith banks in the U nited S ta te s ................................................................... 565,152 495,211 69,941 750,683 683,943 66,740

O ther balances w ith banks in the U nited S ta te s ........................................................................ 783,054 780,207 2,847 1,036,195 1,022,757 13,438

Cash item s in process o f c o lle c tio n ................................................................................................. 106,713 92,192 14,521 89,881 78,551 11,330

S e c u ritie s -to ta l............................................................................................................................................ 25,946,953 22,526,904 3,420,049 25,966,961 22,684,614 3,282,347

U nited States G overnm ent and agency s e c u r itie s - to ta l........................................................ 6,937,039 5,911,208 1,025,831 6,843,925 5,967,835 876,090

Securities maturing in 1 year or less....................................................................................... 924,504 695,384 229,120 876,671 712274 164,397

Securities maturing in 1 to 5 years......................................................................................... 1,940,486 1,498,480 442,006 2,020,126 1,604,165 415,961

Securities maturing in 5 to 10 years....................................................................................... 874,382 710,734 163,648 824,357 694,251 130,106

Securities maturing after 10 years............................................................................................ 3,197,667 3,006,610 191,057 3,122,771 2,957,145 165,626

C orporate b o n d s .................................................................................................................................... 11,833,561 10,605,636 1,227,925 11,757,889 10,560,303 1,197,586

State, co u n ty , and m unicipal o b lig a tio n s .................................................................................... 892,987 861,460 31,527 936,853 8 82,620 54,233

O ther bonds, notes, and d e b e n tu re s .............................................................................................. 2,244,571 1,756,944 487,627 2,283,486 1,856,557 426,929

C orporate s to c k - to ta l.......................................................................................................................... 4,038,795 3,391,656 647,139 4 ,144,808 3,417,299 727,509

Bank ................................................................................................................................................. 399,684 348,385 51299 534,662 348290 186,372

O th e r................................................................................................................................................ 3,639,111 3,043271 595,840 3,610,146 3,069,009 541,137

Federal fu n ds sold and securities purchased under agreements to re s e ll.................................. 1,845,898 1,566,243 279,655 1,208,873 964,856 244,017

O ther lo a n s - t o t a l...................................................................................................................................... 76,605,857 66,736,164 9,869,693 77,499,189 67,449,217 10,049,972

Real estate lo a n s -to ta l....................................................................................................................... 74,225,163 64,800,806 9,424,357 74,919,688 65,339,748 9,579,940

Construction loans........................................................................................................................ 1239,501 1,017,660 221,841 967,161 821,250 145,911

Secured by farmland .................................................................................................................. 5 1J9 6 39,348 11,948 61,815 49,185 12,630

Secured by residential properties:

Secured by 1 - to 4-fam ily residential properties:

Insured by Federal Housing Administration........................................................... 13,322,583 1 2260257 962,226 13,065,571 12,052,069 1,013,502

Guaranteed by Veterans Administration................................................................... 12,808,873 11,629,653 1,179220 12,703,447 11,501239 1202208

Not insured or guaranteed by FHA or V A .............................................................. 22,541,333 17,748,978 4,792,355 23,197,755 18275,751 4,922,004

Secured by multifamily (5 or more) residential properties:

Insured by Federal Housing Administration........................................................... 1,754,756 1,608,623 146,133 1,741,715 1,688,126 53,589

Not insured by FH A........................................................................................................ 10,289,604 9,722,123 567,481 10,746,970 10,076268 670,702

Secured by other properties...................................................................................................... 12,217,217 10,674,064 1,543,153 12,435,254 10,875,860 1,559,394

Loans to dom estic com m ercial and foreign banks ................................................................... 35,520 34,128 1,392 19,768 18,339 1,429

Loans to other financial in s titu tio n s .............................................................................................. 40,746 40,718 28 26,349 26,324 25

Loans to brokers and dealers in securities.................................................................................... 541 541 0 743 743 0

Other loans fo r purchasing or carrying s e c u ritie s ..................................................................... 2,204 1,801 403 2,355 930 1,425

Loans to farm ers (excluding loans on real e s ta te )..................................................................... 1,263 1,263 0 1,416 1,416 0

Comm ercial and industrial loans ................................................................................................... 122,518 114,441 8,077 186,732 175,360 11,372

ASSETS AND LIABI LITIES OF BANKS 215

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 108. ASSETS AND LIA B ILIT IE S OF A L L M UTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

J U N E 3 0 , 1 9 7 4 , A N D D E C E M B E R 3 1 , 1 9 7 4 -C O N T IN U E D 

BANKS GROUPED BY INSURANCE STATUS 

(Amounts in thousands of dollars)

Asset, lia b ility , or surplus account item

June 3 0 ,1 9 7 4 December 31, 1974

Total Insured N oninsured T otal Insured Noninsured

Loans to individuals fo r personal expenditures ........................................................................ 2,066,363 1,699,201 367,162 2,214,599 1,812,329 402,270

A ll other loans (including o v e rd ra fts )............................................................................................ 111,539 43,265 68,274 127,539 74,028 53,511

Total loans and securities ............................................................................ 104,398,708 90,829,311 13,569,397 104,675,023 91,098,687 13,576,336

Bank premises, fu rn itu re and fixtures, and o ther assets representing bank prem ises. . . 897,682 792,681 105,001 976,556 857,879 118,677

Real estate owned other than bank p re m is e s ............................................................................. 226,175 206,929 19,246 271,268 233,775 37,493

Investm ents in subsidiaries n o t consolidated ............................................................................. 82,499 77,431 5,068 86,580 82,292 4,288

Other a s s e ts ............................................................................................................................................ 1,268,699 1,197,789 70,910 1,342,180 1.263,415 78,765

Total liabilities and surplus accounts ................................................................................ 108,575,630 94,678,209 13,897,421 109,544,456 95,589,401 13,955,055

Deposits-total .......................................................................................................... 98,769,053 86,278,609 12,490,444 99,379,412 86,814,415 12,564,997

Savings and tim e d e p o s its -to ta l...................................................................................................... 97,858,376 85,380,310 12,478,066 98,448,830 85,904,825 12,544,005

Savings deposits............................................................................................................................. 65,728,511 56,959,275 8,769,236 65,123,561 56,497,626 8,625,935

Deposits accumulated for payment of personal loans....................................................... 7,655 515 7,140 2,470 295 2,175

Fixed maturity and other time deposits................................................................................ 32,122,210 28,420,520 3,701,690 33,322,799 29,406,904 3,915,895

Demand d e p o s its -to ta l ...................................................................................................................... 910,677 898,299 12,378 930,582 909,590 20,992

Miscellaneous lia b ilitie s-to ta l..................................................................................... 2,032,408 1,729,675 302,733 2,207,995 1,952,443 255,552

Securities sold under agreements to re p u rc h a s e ......................................................................... 27,671 27,671 0 217,561 217,561 0

O ther b o rro w in g s .................................................................................................................................. 530,989 503,714 27,275 680,013 667,256 12,757

O ther lia b ilitie s ..................................................................................................................................... 1,473,748 1,198,290 275,458 1,310,421 1,067,626 242,795

Total liabilities ........................................................................................... 100,801,461 88,008,284 12,793,177 101,587,407 88,766,858 12,820,549

Minority interest in consolidated subsidiaries ............................................................... 0 0 0 0 0 0

Surplus a cco u n ts-to ta l............................................................................................... 7,774,169 6,669,925 1,104,244 7,957,049 6,822,543 1,134,506

Capital notes and d e b e n tu re s ............................................................................................................ 136,857 132,675 4,182 175,647 169,460 6,187

O ther surplus a c c o u n ts ........................................................................................................................ 7,637,312 6,537,250 1,100,062 7,781,402 6,653,083 1,128,319

P E R C E N T A G E S

Of total assets:

Cash and balances w ith other banks .................................................................................................... 1.6% 1.7% .9% 2.0% 2.1% 1.0%

U.S. Governm ent and agency se cu ritie s............................................................................................... 6.4 6.2 7.4 6.2 6.2 6.3

O ther s e c u ritie s ............................................................................................................................................ 17.5 17.5 17.2 17.5 17.5 17.2

Loans (including federal funds sold and securities purchased under

agreements to re s e ll)...................................................................................................................... 72.3 72.1 73.0 71.9 71.6 73.8

O ther assets.................................................................................................................................................... 2.3 2.4 1.4 2.4 2.5 1.7

Total surplus accounts ............................................................................................................................. 7.2 7.0 7.9 7.3 7.1 8.1

Of total assets other than cash and U.S. Government obligations:

Total surplus a c c o u n ts ................................................................................................................................ 7.8 7.6 8.7 1567.3 7.8 8.8

Num ber o f b a n k s ............................................................................................................................................... 480 320 160 480 320 160

216 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 109. ASSETS AND LIA B ILIT IE S OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1964, 1970-1974 

(Amounts in thousands of dollars)

Asset, lia b ility , or capital account item Dec. 31, 1964 Dec. 31, 19 7 0 1 Dec. 31, 1971 Dec. 31, 1972 Dec. 3 1 ,1 9 7 3 Dec. 31, 1974

T otal assets.................................................................................................................................................................. 348,682,8812 576,350,801 639,903,322 737,699,385 832,658,280 912,529,261

Cash, balances w ith banks, and c o lle ctio n ite m s -to ta l ........................................................................

Currency and coin ......................................................................................................................................

Reserve w ith Federal Reserve banks (m em ber b a n k s ).....................................................................

Demand balances w ith banks in the U.S. (except Am erican branches o f foreign b a n k s ). . .

Other balances w ith banks in the U.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 ........................................................................................................

60,032,916

4,551,889

17,580,743

14,090,586

558,335

300,841

22,950,522

93,048,095

7,084,430

23,325,123

21,088,737

1,401,661

395,356

39,752,788

98,690,700

7,591,590

27,482,817

21,962,456

2,427,914

567,033

38,658,890

111,844,113

8,703,008

26,074,890

28,156,064

2,783,379

739,928

45,386,844

116,939,181

10,768,844

27,820,742

3 0,128,768

2,771,041

787,960

44,661,826

126,081,191

11,727,595

27,118,296

34,414,497

4 ,090,428

1,449,086

47,281,289

Investm ent s e c u r itie s - to ta l............................................................................................................................

U.S. Treasury s e c u ritie s ............................................................................................................................

Securities o f o th e r U.S. G overnm ent agencies and c o rp o ra tio n s .................................................

Obligations of States and p o litica l subdivisions ...............................................................................

Other securities ...........................................................................................................................................

100,959,700

62,588,052

3,446,144

33,343,807

1,581,697

141,554,863

58,880,431

12,481,059

67,414,393

2,778,980

163,859,514

62,696,667

17,071,836

80,135,021

3,955,990

178,632,700

64,709,715

21,156,678

87,418,538

5,347,769

179,574,763

55,293,300

27,538,214

91,227,882

5,515,367

185,919,136

51,873,986

31,087,341

96,791,360

6,166,449

Trading account securities3 ............................................................................................................................ 5,664,059 5,307,564 5,128,096 8,655,329 7,983,831

Federal funds sold4 ........................................................................................................................................... 15,952,321

298,189,504

73,053,364

4,319,352

7,302,286

2,563,475

32,321,718

588,760

2,718,829

23238,944

2,581,078

15,794,299

6,208,570

3,517,601

11,153,583

112,214,990

66,005,700

22,366,443

3,807,987

1,343,990

19,643,272

328,225,896

82,314,290

4,173,726

7,476243

2,966,378

37,438,104

803,880

3,177,970

26,277,989

4 ,405,298 

16,908,213 

7,202,440 

3,646,064 

12,506,206 

1 18,401,203 

74,796,848 

24,850,695

4,523,889

1,463,857

25,634,862

388,902,133

99,086,276

4,752270

7236,346

3,181,876

46,425,199

1225,769

4,550,113

31,714,703

6,119,843

23,407,695

11,165,572

4,467,145

14,302,106

132,497,555

87,629,904

29,084,924

5,443,349

1,780,153

34,379,920

459,755,788

118,787,181

5,420,190

6J902,779

3,253,738

57,639,300

1293,191

5,636,229

38,641,754

9,155,496

30,540,982

7,625,741

4,300,946

17,150,320

158,688,202

100,382,510

33,477,132

6,878,593

2262,700

38,937,288

506,378,800

131,751,383

6,030,620

6,154,725

3,193,583

65,204281

939,083

6,652,445

43,576,646

10,082,525

35,119,904

5,192,896

4,003,015

18,225,296

184,216,999

103,714,164

32,949,382

8,327,292

2,810,808

Other l o a n s - t o t a l..............................................................................................................................................

Real estate lo a n s -to ta l...............................................................................................................................

Secured by farmland............................................................................................................................

Secured by residential properties:

Secured by 1 - to 4-fam ily residential properties:

Insured by Federal Housing Administration...................................................................

Guaranteed by Veterans Administration..........................................................................

Not insured or guaranteed by FHA or V A .....................................................................

Secured by mu It if amity (5 or more) properties:

Insured by Federal Housing Administration3 ................................................................

178,648,870

43,733,086

2,616,604

7,243,497

2,684,468

18,810,798

Not insured by FHA 3 ...........................................................................................................

Secured by other properties.............................................................................................................

Loans to dom estic com m ercial and foreign b a n k s .........................................................................

Loans to o ther financial in s titu tio n s .....................................................................................................

Loans to brokers and dealers in securities .........................................................................................

O ther loans fo r purchasing or carrying s e c u ritie s ............................................................................

Loans to farm ers (excluding loans on real e s ta te )............................................................................

Com mercial and industrial loans (in cluding open m arket paper).................................................

Other loans to in d iv id u a ls -to ta l ..........................................................................................................

Passenger automobile instalment loans.........................................................................................

Credit cards and related plans:

Retail (charge account) credit card plans5.....................................................................

12.377.719

3,420,989

10,849,646

5,355,550

2,794,217

7,496,223

60,040,383

39,814,778

14.661.720

Check credit and revolving credit plans? ...............................................................................

ASSETS AND LI ABI LITI ES OF BANKS 217

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 109. ASSETS AND L IA B ILIT IE S OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1964, 1970-1974-C O N TIN U E D 

(Amounts in thousands of dollars)

Asset, lia b ility , or capital account item Dec. 31, 1964 Dec. 31, 1970 Dec. 3 1 ,1 9 7 1 Dec. 31, 1972 Dec. 31, 1973 Dec. 31, 1974

Other retail consumer instalment loans1 ....................................................................................... 3,748,783 7,306295

Mobile homes, not including travel trailers3 ........................................................................... 4,674,364

4,655,510

3,865,597

11,409,477

19,353,459

8,045,334

6,436,145

5,170,118

4,326,916

12203,659

22,484,640

10,226,037

8,371286

6,206,851

4 2 0 6 2 4 0

14,538,048

23,740260

13,124,410

8,998,167

6,514,415

5,625,691

15,491,334

22297,075

14,072,618

Other retail consumer goods3.......................................................................................................

Residential repair and modernization instalment loans............................................................

Other instalment loans for personal expenditures......................................................................

Single-payment loans for personal expenditures........................................................................

A ll other loans (including o v e rd ra fts )....................................................................................................

3,012,861

6,441,204

11250210

5,143,998

3,716,802

10,534,538

16^28,945

7,660,319

T otal loans and securities.............................................................................................................. 279,608,570 461,360,747 517,036,246 598,297,791 682,365,800 739,219,055

Bank premises, fu rn itu re and fixtures, and oth e r assets representing bank prem ises............

Real estate owned o th e r than bank p re m is e s .....................................................................................

Investm ents in subsidiaries n o t consolidated3 .....................................................................................

} 4,753,588 9,143,432

406,832

740,897

3,753,246

7,897,552

10,285,384

390,833

911,550

3,914,186

8,674,423

11,524,646

3 69,193

1,077,700

3,471,203

11,114,739

12,788,763

4 33,860

1,403,400

4,356,527

14,370,749

14,296,959

811,080

1,739,054

10,653,382

19,728,540

Custom ers' lia b ility on acceptances outstanding .............................................................................

O ther a s s e ts ...................................................................................................................................................

1,697,120

2,590,687

T otal lia b ilitie s , reserves, and capital accounts ............................................................................................... 348,682,881 576,350,801 639,903,322 737,699,385 832,658,280 912,529,261

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

Savings deposits.....................................................................................................................................

Deposits accumulated for payment of personal loans..............................................................

Other deposits of individuals, partnerships, and corporations...............................................

C ertified and o ffice rs' checks, letters o f credit, travelers' checks, etc.........................................

252,983,403

134,300,734

112,804,696

82,966,971

956,410

28,881,315

5,877,973

395,246,811

181,897,284

204,962,756

98,815,863

802,924

105,343,969

8,386,771

439,568,884

191,775,515

237,930,791

112,165,951

677,179

125,087,661

9,862,578

504,283,757

221,204,645

271,826,567

124,188,716

554,001

147,083,850

11,252,545

555,151,799

231,956,880

312,332,827

127,818,434

503,468

184,010225

10,862,092

604,637,647

235,984,680

358,273,861

136,268,612

386,635

221,618,614

10,379,106

G overnm ent d e p o s its -to ta l.............................................................................................................................

United States G o ve 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 s u b d iv is io n s -tim e ...................................................................................................................

30,068,312

6,500,876

270,832

13,497,662

9,798,942

49,455,597

7,914,962

465,476

17,784,768

23,290,391

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

74,219,736

4,821,969

500,147

18,710,659

50,186,961

Dom estic interbank d e p o s its - to ta l..............................................................................................................

Com m ercial banks in the U nited S ta te s -d e m a n d .............................................................................

Comm ercial banks in the United S ta te s - tim e ...................................................................................

M utual savings banks in the United S tates-dem and ......................................................................

M utual savings banks in the United S ta te s -tim e .............................................................................

16,754,488s

15,492,798

382,943

740,382

118,835

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

45,328,505

35,101,553

8,563,604

1,197,332

466,016

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 governments, central banks, e t c . - t i m e ................................................................................

Banks in foreign co u n trie s-d e m a n d ....................................................................................................

Banks in foreign c o u n trie s -tim e ...........................................................................................................

6,424,074

826,137

3,893,693

1,454,685

249,559

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

22,227,034

1,882,054

12,078,963

6,339,583

1,926,434

T otal d e p o s its ..........................................................................................................................................

Demand...............................................................................................................................................

T im e ....................................................................................................................................................

306,230,277s

178,691,247

127,539,030

482,513,855

247,170,446

235,343,409

539,184,062

262^78,862

276^05,200

616,907,567

296,391,091

320,516,476

681,619,425

309,106,381

372,513,044

746,412,922

314,416,936

431,995,986

218 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Miscellaneous lia b ilitie s-to ta l..........................................................................................

Federal fu n d s purchased (b o rro w e d )7 ...................................................................................................

11,461,821 44,968,169

16,609,041

2,572,528

6 68,545

3,848,666

21,269,389

47,367,281

24,179,742

1,463,429

668,331

4,039,643

17,106,136

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

94,147,074

51,224,639

4,867,119

724,845

11,226,448

26,104,023

O ther lia b ilitie s fo r b o rrow ed m o n e y ..................................................................................................

Mortgage indebtedness3 ............................................................................................................................

2,591,133

Acceptances o u ts ta n d in g ..........................................................................................................................

O ther lia b ilitie s ....................................................................................................................................

1,737,101

7 ,133,587

Total lia b ilitie s...................................................................................................... 317,692,098 527,482,024 586,551,343 678,416,789 767,005,602 840,559,996

Minority interest in consolidated subsidiaries ................................................................... 3,219

6,299,150

3,551

6,443,382

5,594

6,909,306

5,473

7,808,584

5,113

Reserves on loans and securities-total............................................................................... 3,552,676 8,676,953

Reserves fo r bad debt losses on lo a n s ................................................................................................... 3,552,676 5,998,689 6,151,274 6,623,801 7,526,744 8,376,683

O ther reserves on loans3 ..................................................................................................................... 115,601

184,860

42,566,408

113,427

178,681

46,905,046

112,167

173,338

52,367,696

107,994

173,846

57,838,621

131,581

168,689

63,287,199

Reserves on securities3 .............................................................................................

Capital a c c o u n ts -to ta l.................................................................... 27,438,107

Capital notes and d e b e n tu re s .................................................................................................................. 810,657 2,091,879 2,956,180 4,092,820 4,117,351 4,259,531

E q u ity c a p ita l- to ta l.................................................................................................................................... 26,627,450 40,474,529 43,948,866 48,274,876 53,721,270 59,027,668

Preferred stock............................................................................................................................... 41,747 107,304 91,930 68,924 65,650 43,460

Common stock............................................................................................................................. 7,886,432 11,137,824 11,811,129 12,853,653 13,846,071 14,789,463

Surplus ................................................................................................................... 12,893,189 18,072,590 19,895,816 21,528,422 23,593,311 25,313,257

Undivided p ro fits .......................................................................................................................... 5,113,007 10,145,848 11,135,068 13,012^32 15,361,857 17,969,789

Reserve for contingencies and other capital reserves................................................................ 693,075 1,010,963 1,014,923 811,645 854,381 911,699

P E R C E N T A G E S

Of total assets:

Cash and balances w ith o ther b a n ks............................................................................. 17.2% 16.1% 15.4% 15.2% 14.0% 13.8%

U.S. T reasury securities and securities o f oth e r U.S. G overnm ent agencies and co rp o ra tio n s. . 18.9 12.4 12.5 11.6 9.9 9.1

O ther s e c u ritie s .......................................................... 10.0 13.2 14.0 13.3 12.7 12.2

Loans (in cluding Federal funds sold and securities purchased under

agreements to re s e ll)............................................................................................................................ 51.2 54.5 54.4 56.2 59.3 59.8

O ther assets.......................................................................................................................................................... 2.6 3.8 3.8 3.7 4.0 5.2

T otal capital a c c o u n ts .................................................................................................................................... 7.9 7.4 7.3 7.1 7.0 7.0

Of total assets other than cash and U.S. Treasury securities:

T otal capital a c c o u n ts ...................................................................................................................................... 12.1 10.0 9.8 9.4 8.8 8.7

N um ber o f banks ..................................................................................................................................................... 13,493 13,511 13,612 13,733 13,976 14,228

1 For description o f changes in 1969 in the R eport o f C o n dition, see pp. 205-206 and notes to tables.

2Assets include "O th e r loans and d isco u n ts" at gross (before deduction o f valuation reserves) value, as reported in 1 9 7 0 -1 9 7 4 .

3 N ot available p rio r to figure shown, see note 1.

4 P rior to December 31, 1966, "F ederal funds sold (lo a n e d )" not reported separately; most 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 foreign banks" and "O th e r loans fo r purchasing or carrying securities."

5 Before 1967, loans extended under credit cards and related plans were distributed among other instalm ent loan items.

6 Includes postal savings deposits, $19,530 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 219

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 110. ASSETS AND LIA B ILIT IE S OF INSURED M UTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1964, 1970-1974 

(Amounts in thousands of dollars)

Asset, lia b ility , or surplus account item Dec. 3 1 ,1 9 6 4 Dec. 31, 1970 Dec. 3 1 ,1 9 7 1 Dec. 3 1 ,1 9 7 2 Dec. 31, 1973

T o ta l asse ts...........................................................................................................................

Cash, balances w ith banks, and co lle ctio n ite m s -to ta l .................................

Currency and c o i n ................................................................................................

Demand balances w ith banks in the U nited S ta te s ....................................

O ther balances w ith banks in the U nited S ta te s .........................................

Cash item s in process o f c o lle c tio n ..................................................................

S e c u ritie s -to ta l............................................................................................................

U nited States G overnm ent and agency s e c u r itie s - to ta l.........................

Securities maturing in 1 year or less2........................................................

Securities maturing in 1 to 5 years2..........................................................

Securities maturing in 5 to 10 years'2 .....................................................

Securities maturing after 10 years2 ..........................................................

State, co u n ty, and m unicipal o b lig a tio n s .....................................................

Corporate b o n d s.....................................................................................................

Other bonds, notes, and d e b e n tu re s ...............................................................

Corporate s t o c k - t o t a l........................................................................................

Bank...................................................................................................................

Other....................................................................................................................

Federal funds sold and securities purchased under agreements to resell4 .

Other l o a n s - t o t a l.......................................................................................................

Real estate lo a n s -to ta l........................................................................................

Construction loans2........................................................................................

Secured by farmland......................................................................................

Secured by residential properties:

Secured by 1 - to 4-fam ily residential properties:

Insured by Federal Housing Administration............................

Guaranteed by Veterans Administration....................................

Not insured or guaranteed by FHA or V A ...............................

Secured by multi family (5 or more) residential properties:

Insured by Federal Housing Administration............................

Not insured by FH A.........................................................................

Secured by other properties..................................................................

Loans to dom estic com m ercial and foreign banks ...................................

Loans to o ther financial in s titu tio n s .............................................................

Loans to brokers and dealers in secu ritie s.....................................................

Other loans fo r purchasing or carrying s e c u ritie s ......................................

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 exp e n d itu re s...........................................

A ll other loans (in cluding o v e rd ra fts ).............................................................

47,044,1841

893,139

138,843

476,644

224,274

53,378

9,125,108

4,859,671

367,846 

2,904,7323

992,859

68,739,5241 77,891,927 87,650,051 93,012,515

1,115,656

173,646

538,858

316,584

13,550,8491

3,860,276

192,606

7,413,742s

2,084,225

251,321

1,832,904

1,273,735

195,679

551,149

445,384

81,523

18,491,379

5,156,3215 

867,992

1,823,997

832,859

1,631,473

373,810

9,293,507

1,194,941

2,472,800

288,373

2,184,427

1,520,399

215,345

568,211

627,530

109,313

22,636,737

6,386,0035 

968,157

1J 15,014

1,095,116

2,407,716

857,353

11,086,004

1,370,862

2,936,515

329,426

2,607,089

1,847,776

226,905

711,172

817,495

92,204

21,871,412

5,971,2 0 0 5 

831,719

1,513,476

789J936

2,836,069

907,013

10,026,920

1,713,867

3,252,412

364,066

2,888,346

36,442,8261 52,753,8081

35,823,288 50,695,693

48,6295 112,723s

11,527,8276 13,563,069

10,129,2746 10,884,718

10,739,8936 12,089,288

1,358,590

6,015,291

3,377,665 6,672,014

16,2284 280,9994

9,322 53,867

25,759 16,342

4,807 1,838

2,152 1,068

156,977 586,589

391,145 1,081,513

13,148 35,899

493,536

56,066,722

54,222,077

736,386

41,656

13,532,344

10,923,517

13,031,229

1,396,791

7,136,586

7,423,568

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

1,002,712

51,459

13,388,433

11,413,769

14,804,568

1,399,794

8,265226

8,767,669

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

1,090262

51,160

12,828,775

11,728,249

17,087,533

1,523,751

9,416,887

10219,896

13,679

29,473

4,441

2,221

1,323

173,322

1,665,365

34,377

95,589,401

2,053,353

268,102

683,943

1,022,757

78,551

22,684,614

5,967,835s

712,274

1,604,165

694,251

2,957,145

882,620

10,560,303

1,856,557

3,417,299

348,290

3,069,009

964,856

67,449,217

65,339,748

821250

49,185

12,052,069

11,501,239

18275,751

1,688,126

10,076,268

10,875,860

18,339

26,324

743

930

1,416

175,360

1,812,329

74,028

220 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Total loans and securities...................................................................................

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 the r than bank premises ............................................................................

Investm ents in subsidiaries n ot consolidated2 .............................................................................

45,358,1601

316,189

26,709

66,304,6571

528,680

62,805

75,051,637

590,326

90,987

41,518

843,724

84,183,473

661,118

147,340

59,309

1,078,412

88,994,879

760,289

180,671

64,883

1,164,017

91,098,687

857,879

233,775

82,292

O ther assets ........................................................................................................................................... 449,987 727,726 1,263,415

Total liabilities and surplus accounts ..................................................................................... 47,044,184 68,739,524 77,891,927 87,650,051 93,012,515 95,589,401

D e posits-total................................................................................................................. 42,751,099 62,683,783 71,500,831 80,571,993 84,890,128 86,814,415

Savings and tim e d e p o s its -to ta l............................................................................................................. 42,418,248 62,090,168 70,818,051 79,781,381 84,008,571 85,904,825

Savings deposits...................................................................................................................................... 42,374,371 57,989,110 57,644,100 60,573,427 57,591,849 56,497,626

Deposits accumulated for payment of personal loans..............................................................

Fixed maturity and other time deposits.......................................................................................

800 64

4,100,994

593,615

80

13,173,871

682,780

25

19,207,929

790,612

476

26,416,246

881,557

295

29,406,904

Demand d e p o s its - to ta l.................................................................................................... 332,851 909,590

Miscellaneous lia b ilitie s-to ta l..........................................................................................

Securities sold under agreements to repurchase..................................................................................

562,242 1,000,127 975,9961 1,114,469

22,757

98,980

1,609,538

26,089

445,901

1,952,443

217,561

O ther b o rro w in g s ................................................................................................................... 20,402 252,171 100,045 667,256

O ther lia b ilitie s ........................................................................................................................................... 541,840 747,956 875,951 992,732 1,137,548 1,067,626

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

Minority interest in consolidated subsidiaries2 ...................................................................

43,313,341 63,683,910 72,476,827

1

81,686,462

o

86,499,666

o

88,766,858

o

Surplus a c c o u n ts-to ta l.................................................................................................... 3,730,843 5,055,614 5,415,099 5,963,589 6,512,849 6,822,543

Capital notes and d e b e n tu re s .................................................................................................................. 674 6,068 10,456 59,372 114,953 169,460

O ther surplus a c c o u n ts ............................................................................................................................... 3,7 3 0 ,8 4 3 1 5,049,5461 5,404,643 5,904,217 6,397,896 6,653,083

P E R C E N T A G E S

Of total assets:1

Cash and balances w ith other banks ........................................................................................................... 1.9% 1.6% 1.7% 1.7% 2.0% 2.1%

U.S. Governm ent and agency s e c u ritie s ................................................................................................... 10.3 5.6 6.6 7.3 6.4 6.2

Other s e c u ritie s ................................................................................................................................................... 9.1 14.1 17.1 18.5 17.1 17.5

Loans (in cluding Federal funds sold and securities purchased

under agreements to re s e ll)................................................................................................................ 77.5 76.8 72.6 70.2 72.2 71.6

Other assets ........................................................................................................................................................ 1.2 1.9 2.0 2.2 2.3 2.5

Total surplus a c c o u n ts ...................................................................................................................................... 7.9 7.4 7.0 6.8 7.0 7.1

Of total assets other than cash and U.S. Government and agency securities:

Total surplus accounts .................................................................................................................................... 9.1 7.9 7.6 7.5 7.6 7.8

Num ber of banks ..................................................................................................................................................... 327 329 327 326 322 320

1 Figures on loans and on securities have been revised to a gross basis to provide com parability w ith data fo r 1 9 7 1 -1 9 7 4 . See page 206 fo r in fo rm a tio n on changes in reports in 1971.

2 N ot reported separately p rio r to 1971.

3 C orporate bonds included w ith other bonds, notes, and debentures p rio r to 1971.

4 Federal funds sold included w ith loans to banks p rio r to 1971.

5 Farmers Home A d m in istra 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 4 .

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 LIAB! LITIES OF BANKS 221

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 111. PERCENTAGES OF ASSETS AND LIA B ILIT IE S OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1974 IN 

THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1974 

BANKS GROUPED BY AMOUNT OF DEPOSITS

Banks w ith deposits o f -

Asset, lia b ility , o r capital account item Less $1 m illio n $2 m illio n $5 m illio n $10 m illio n $25 m illio n $50 m illio n $100 m illio n $500 m illio n $1 b illio n

A ll than to to to to to to to to or

banks $1 m illio n $2 m illio n $5 m illio n $10 m illio n $25 m illio n $50 m illio n $100 m illio n $500 m illio n $1 b illio n m ore

T ota 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 .......................................................... 13.8 14.8 13.8 11.0 10.5 10.3 10.6 11.4 13.4 13.9 16.1

U.S. Treasury and agency securities1 ...................................... 9.1 28.3 25.7 23.5 19.3 15.3 12.9 11.6 9.9 7.3 5.7

O bligations o f States and p o litica l s u b d iv is io n s .................. 10.7 1.4 3.6 7.4 11.7 14.1 14.8 14.7 13.0 11.8 7.3

O ther s e c u ritie s .............................................................................. .7 1.8 .9 .8 .6 .8 .9 1.0 .9 .7 .4

Federal funds sold (loaned)2 ..................................................... 4.3 19.1 11.9 8.6 6.9 5.6 4.7 4.3 4.4 5.6 3.3

O ther loans and d is c o u n ts -to ta l.............................................. 55.4 33.8 42.1 46.5 48.7 51.3 52.9 53.6 54.5 55.6 58.2

Real estate lo a n s -to ta l.......................................................... 14.4 4.5 9.3 12.6 14.9 17.6 18.5 19.1 17.9 16.6 10.3

Loans to banks and other financial in s titu tio n s .......... 5.0 .0 .4 .3 .3 .3 .5 .8 1.7 3.3 9.5

Loans to purchase or carry s e c u ritie s ............................... 1.0 .1 .1 .2 .2 .3 .3 .4 1.0 .7 1.6

Loans to farm ers (excluding loans on real e s ta te )____ 2.0 13.5 14.7 13.3 10.9 7.0 3.3 1.5 .9 .8 .6

Com m ercial and industrial loans ...................................... 20.2 4.3 5.9 7.2 8.6 10.4 13.0 15.2 16.9 19.5 27.1

Instalm ent loans fo r personal e x p e n d itu re s .................. 8.8 8.3 8.6 9.5 10.2 11.8 13.1 12.6 12.1 9.6 5.3

Single-paym ent loans fo r personal e x p e n d itu re s .......... 2.5 1.6 2.7 2.9 3.1 3.3 3.6 3.4 2.9 3.4 1.6

A ll o th e r loans (in cluding o v e rd ra fts ).............................. 1.5 1.5 .4 .5 .5 .6 .6 .6 1.1 1.7 2.2

O ther assets ................................................................................... 6.0 .8 2.0 2.2 2.3 2.6 3.2 3.4 3.9 5.1 9.0

T otal lia b ilitie s , reserves, and capital a c c o u n ts ......................... 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 82.8 86.2 88.0 88.7 88.7 87.7 86.8 84.3 80.6 77.1

D em and.............................................................................. 34.5 61.3 49.1 38.2 35.7 34.3 33.7 33.5 35.0 35.4 34.3

Tim e...................................................................................... 47.4 21.5 37.1 49.8 53.0 54.4 54.0 53.3 49.3 45.2 42.8

Individuals, partnerships, and c o rp o ra tio n s -d e m a n d . 26.0 54.8 43.1 32.7 30.1 28.7 28.2 27.6 27.5 27.2 23.5

Individuals, partnerships, and c o rp o ra tio n s -tim e . . . . 39.4 17.1 32.7 44.7 47.9 48.8 47.9 45.6 41.6 37.6 33.4

U.S. G o v e rn m e n t.................................................................... .6 .5 .5 .8 1.0 1.2 1.2 .8 .6 .4 .3

States and s u b d ivisio n s .......................................................... 7.6 9.9 8.9 8.8 8.7 8.9 9.0 10.2 9.8 9.5 5.1

D om estic in te rb a n k.................................................................. 5.7 .1 .4 .3 .2 .3 .5 1.6 3.7 5.0 10.0

Foreign governm ent and b a n k ........................................... 1.5 .0 .0 (5) (5) (5) (5) (5) .1 .1 3.4

O ther d e p o s its ......................................................................... 1.1 .4 .6 .7 .8 .8 .9 1.0 1.0 .8 1.4

Federal funds purchased (b o rro w e d )3 ................................... 5.6 .0 .0 .1 .3 .4 1.0 2.0 4.6 7.6 8.7

O ther lia b ilitie s fo r borrow ed m o n e y ...................................... .5 .0 (5) .1 .1 .1 .1 .2 .2 .6 .9

O ther lia b ilitie s 4 .............................................................................. 4.1 1.1 1.1 1.5 1.7 2.2 2.8 2.8 2.7 3.3 5.9

Reserves on loans and securities................................................ .9 .2 .5 .5 .6 .8 .8 .8 .9 .9 1.1

Capital notes and deb e n tu re s..................................................... .5 .0 (5) .1 .1 .2 .3 .4 .5 .6 .6

O ther capital a c c o u n ts ................................................................. 6.5 15.9 12.2 9.7 8.5 7.6 7.3 7.0 6.8 6.4 5.7

13,863 29 260 2,103 3,160 4,627 1,942 931 634 93 84

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.

4 Includes m in o rity interest in consolidated subsidiaries.

5 Less than 0.05 percent.

N ote: For incom e 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 Assets and Liabilities-Commercial and Mutual Savings

Banks (w ith 1974 re p o rt o f incom e), December 31, 1974.

222 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 112. PERCENTAGES OF ASSETS AND LI ABI LITIES OF INSURED M UTUAL SAVINGS BAN KS OPE RATI NG THROUGHOUT 1974 IN 

THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1974 

BANKS GROUPED BY AMOUNT OF DEPOSITS

Banks w ith deposits o f -

Asset, lia b ility , o r surplus account item A ll

banks1

$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 illion 

or 

more

T o ta l a s s e ts ..................................................................................................... 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Cash and due fro m b a n k s .................................................................... 2.1 5.5 2.4 1.7 2.2 2.0 2.5 2.0

U nited States G overnm ent and agency s e c u ritie s ....................... 6.2 9.4 6.8 5.6 7.4 7.6 6.4 5.2

Corporate bo n d s...................................................................................... 11.0 7.2 9.6 6.8 8.3 8.6 10.3 13.6

State, c o u n ty and m unicipal o b lig a tio n s ........................................ .9 .9 .8 .8 .7 .8 .8 1.1

Other s e c u ritie s ...................................................................................... 5.5 6.8 5.3 6.0 5.4 6.0 5.6 5.1

Federal funds sold and securities purchased under

agreements to resell......................................................................... 1.0 3.5 2.5 2.1 2.2 1.5 .9 .6

O ther loans and d is c o u n ts ................................................................. 70.6 64.7 71.0 74.9 71.6 71.0 70.9 69.7

Real estate lo a n s -to ta l......................................................................... 68.4 59.6 66.1 70.0 68.1 68.4 68.8 68.1

Construction loans......................................................................... .9 1:5 .6 .9 1.0 1.1 1.2 .5

Secured by farmland....................................................................... .1 .3 .6 .3 .2 (2) .1 (2)

Secured by residential properties:

Insured by FH A......................................................................... 14.4 4.1 2.7 5.1 7.4 11.9 15.2 17.1

Guaranteed by I/A .................................................................... 12.0 2.4 4.9 5.2 7.1 10.5 11.4 14.5

Not insured or guaranteed by FHA or V A ....................... 29.7 43.7 48.7 51.2 45.3 36.7 30.2 21.3

Secured by other properties....................................................... 11.4 7.7 8.7 7.3 7.1 8.1 10.6 14.7

Com m ercial and industrial lo a n s....................................................... .2 1.1 .3 .2 .3 .2 .2 .2

Loans to individuals fo r personal exp e n d itu re s............................ 1.9 3.9 4.3 4.4 3.0 2.4 1.8 1.3

A ll other loans including o v e rd ra fts ................................................ .1 .1 .3 .3 .2 .1 .1 .1

O ther asse ts............................................................................................. 2.5 1.9 1.7 2.2 2.2 2.4 2.7 2.6

T otal lia b ilitie s and surplus a c c o 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........................................................................................ 90.8 90.4 91.3 91.1 90.7 91.2 90.4 90.8

Savings d e p o s its .............................................................................. 59.1 60.3 65.7 62.9 61.7 61.5 59.2 56.9

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 o ther tim e d e p o s its ................................. 30.8 29.6 24.9 27.5 28.3 28.6 30.3 33.0

Demand deposits ............................................................................ 1.0 .4 .7 .6 .8 1.1 .9 .9

Miscellaneous lia b ilitie s ....................................................................... 2.0 1.1 .6 1.1 1.6 1.5 2.4 2.4

Surplus a c c o u n ts ................................................................................... 7.1 8.5 8.0 7.8 7.7 7.3 7.3 6.9

Capital notes and d e b e n tu re s ..................................................... .2 .4 .4 .3 .2 .2 .2 .2

O ther surplus a c c o u n ts .................................................................. 7.0 8.1 7.6 7.5 7.5 7.1 7.1 6.7

N um ber o f ba n ks........................................................................................... 320 11 22 71 62 103 29 22

1 D ollar am ounts o f assets and lia b ilitie s of all m utual savings banks are shown in Assets and Liabilities-Commercial and Mutual Savings Banks (w ith 1974 re port of incom e), December 31, 1974.

2 Zero or less than 0.05 percent.

ASSETS AND LIABI LITIES OF BANKS 223

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, 1974

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS

Ratios 

(In percent)

A ll

banks

N um ber of banks w ith deposits o f -

I ess 

t ^ n 

$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

Ratios o f obligations o f States and subdivisions to 

to ta l assets o f -

19 0 Z e r o ............................................................................................. 1,045 48 169 455 247 104 3 0 0

More than 0.0 b u t less than 1.0 ........................................ 396 3 45 197 80 50 12 4 5 0 0

1.0 to 2 . 4 9 ................................................................................. 460 1 43 207 113 62 25 4 5 0 0

2.5 to 4 . 9 9 ................................................................................. 825 5 29 279 225 188 47 22 20 3 7

5.0 to 7 . 4 9 ................................................................................. 1,156 0 15 244 312 354 105 51 39 14 22

7.5 to 9 . 9 9 ................................................................................. 1,645 1 10 238 405 560 195 103 91 22 20

10.0 to 1 2 . 4 9 ............................................................................ 1,970 1 12 201 493 675 297 136 122 15 18

12.5 to 1 4 . 9 9 ............................................................................ 1,918 1 9 127 415 697 339 175 125 17 13

15.0 to 1 7 . 4 9 ............................................................................ 1,638 0 7 103 315 622 311 169 98 10 3

17.5 to 1 9 . 9 9 ............................................................................ 1,209 0 4 86 191 509 234 109 69 7 0

20.0 to 24.99 ............................................................................ 1,285 1 4 65 255 552 246 113 45 3 1

25.0 or m ore ............................................................................ 643 0 4 49 149 263 118 43 15 2 0

Ratios o f U.S. Treasury securities to to ta l assets o f -

669 369 302 54 65 Less than 5 ................................................................................. 4,199 25 76 459 807 1,373

5 to 9 .9 9 ...................................................................................... 4,616 10 81 537 909 1,616 774 388 252 33 16

10 to 1 4 .9 9 ................................................................................. 2,641 6 65 469 681 906 329 118 59 6 2

15 to 1 9 .9 9 ................................................................................. 1,240 6 41 293 358 387 107 34 13 0 1

0

20 to 24.99 ................................................................................. 635 0 25 191 206 161 39 9 4 0

25 to 29.99 ................................................................................. 371 4 21 113 118 95 11 9 0 0 0

30 to 34.99 ................................................................................. 213 6 12 72 63 43 13 2 2 0 0

35 to 39.99 ................................................................................. 110 0 11 41 27 26 2 2 1 0 0

64 1 7 27 11 14 2 1 1

0

0 0

45 to 49.99 ................................................................................. 49 0 7 20 11 10 1 0 0 0

50 or m o r e ................................................................................. 52 3 5 29 9 5 1 0 0 0 0

224 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 .............................................................................. 68 7 9 28

20 to 24.09 ................................................................................. 84 3 11 20

25 to 29.99 ................................................................................. 180 2 8 50

30 to 34.99 ................................................................................. 341 3 15 91

35 to 39.99 ................................................................................. 562 0 25 127

40 to 44.99 ................................................................................. 980 3 33 196

45 to 49.99 ................................................................................. 1,546 4 30 256

50 to 54.99 ................................................................................. 1,991 5 26 282

55 to 59.99 ................................................................................. 2,511 8 39 331

60 to 64.99 ................................................................................. 2,671 7 53 326

65 to 69.99 ................................................................................. 1,866 7 39 254

70 to 74.99 ................................................................................. 899 5 31 148

75 or m o r e ................................................................................. 491 7 32 142

Ratios o f cash and due fro m banks to to ta l assets o f -

Less than 5 ................................................................................. 837 6 12 167

5.0 to 7 . 4 9 ................................................................................. 3,155 6 58 514

7.5 to 9 . 9 9 ................................................................................. 3,649 8 67 521

10.0 to 1 2 .4 9 ............................................................................ 2,601 9 57 386

12.5 to 1 4 .9 9 ............................................................................ 1,555 6 39 216

15.0 to 17.49 ............................................................................ 911 6 30 140

17.5 to 1 9 .9 9 ............................................................................ 567 5 18 93

20.0 to 24.99 ............................................................................ 518 5 31 101

25.0 to 29.99 ............................................................................ 201 5 17 51

30.0 o r more ............................................................................ 196 5 22 62

Ratios o f to ta l demand deposits to to ta l deposits o f -

Less than 2 5 .............................................................................. 1,000 3 6 122

25 to 29.99 ................................................................................. 1,649 0 13 193

30 to 34.99 ................................................................................. 2,387 1 32 306

35 to 39.99 ................................................................................. 2,566 4 31 373

40 to 44.99 ................................................................................. 2,286 5 50 353

45 to 49.99 ................................................................................. 1,715 8 44 286

50 to 54.99 ................................................................................. 1,051 5 30 204

55 to 59.99 ................................................................................. 636 8 34 137

60 to 64.99 ................................................................................. 332 7 30 82

65 to 69.99 ................................................................................. 197 2 14 58

70 to 79.99 ................................................................................. 162 3 19 55

80 to 89.99 ................................................................................ 62 3 12 19

90 or m o r e ................................................................................. 147 12 36 63

12 6 2 1 3 0 0

21 22 4 3 0 0 0

61 45 10 2 2 0 0

104 83 34 9 2 0 0

187 163 35 16 8 1 0

263 314 93 51 25 1 1

399 517 198 93 44 4 1

406 717 321 122 94 9 9

508 826 412 205 141 18 23

478 887 437 240 177 37 29

378 634 284 127 112 15 16

241 306 88 50 19 6 5

142 116 30 13 7 2 0

220 270 87 55 19 1 0

820 1,146 410 144 49 8 0

827 1,280 550 234 145 13 4

530 839 412 205 129 15 19

314 503 211 115 106 23 22

171 251 128 85 71 9 20

113 143 72 48 53 12 10

113 130 49 31 42 10 6

44 38 22 6 14 2 2

48 36 7 9 6 0 1

231 372 146 78 39 3 0

374 611 261 127 62 5 3

553 845 372 165 96 11 6

583 876 386 180 111 11 11

531 714 317 162 117 17 20

360 548 228 103 99 22 17

228 337 119 54 53 11 10

142 165 71 30 29 8 12

74 78 26 13 15 3 4

44 48 13 11 5 1 1

37 32 6 6 3 1 0

15 8 1 1 3 0 0

28 2 2 2 2 0 0

ASSETS AND LIABI LITIES OF BANKS 225

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 4 -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

Ratios 

(In percent)

A ll

banks

Num ber o f 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 

more

Ratios o f to ta l capital accounts to to ta l assets o th e r than 

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 .............................................................................. 915 0 2 28 98 353 179 132 76 21 26

7.5 to 9 . 9 9 ................................................................................. 5,021 1 7 311 881 1,915 963 482 359 53 49

10.0 to 12.49.............................................................................. 3,997 1 36 533 973 1,472 568 239 153 14 8

12.5 to 1 4 . 9 9 ............................................................................ 1,776 2 47 390 555 535 158 54 29 5 1

15.0 to 1 7 .4 9 ............................................................................ 877 1 34 274 293 206 42 16 11 0 0

17.5 to 1 9 . 9 9 ............................................................................ 455 3 19 174 155 79 19 3 3 0 0

20.0 to 22.49 ............................................................................ 294 3 26 130 90 38 3 4 0 0 0

22.5 to 24.99 ............................................................................ 173 2 22 76 47 14 10 1 1 0 0

25.0 to 29.99 ............................................................................ 230 3 30 122 59 13 2 1 0 0 0

30.0 to 34.99 ............................................................................ 135 4 23 70 28 7 3 0 0 0 0

35.0 to 39.99 ............................................................................ 82 5 22 44 8 2 1 0 0 0 0

40.0 or more ............................................................................ 235 36 83 99 13 2 0 0 2 0 0

Ratios o f to ta l capital accounts to to ta l assets o f -

Less than 5 ................................................................................. 239 0 1 8 26 92 57 31 16 1 7

5 to 5 .9 9 ...................................................................................... 1,261 0 3 95 236 475 179 140 91 21 21

6 to 6 .9 9 ...................................................................................... 2,973 0 9 300 597 1,083 489 237 201 27 30

7 to 7 .9 9 ...................................................................................... 3,537 1 25 414 758 1,259 565 292 179 27 17

8 to 8 .9 9 ...................................................................................... 2,474 2 37 332 595 902 367 134 87 11 7

9 to 9 .9 9 ...................................................................................... 1,327 3 35 276 353 410 159 48 39 3 1

10 to 1 0 .9 9 ................................................................................. 742 1 26 184 220 207 66 25 11 2 0

11 to 1 1 .9 9 ................................................................................. 456 1 30 128 145 100 38 9 3 1 1

12 to 1 2 .9 9 ................................................................................. 271 2 25 103 79 42 5 9 6 0 0

13 to 1 4 .9 9 ................................................................................. 290 4 26 120 83 37 17 3 0 0 0

15 to 1 6 .9 9 ................................................................................. 137 7 15 58 39 14 0 3 1 0 0

17 or m o r e ................................................................................. 483 40 119 233 69 15 6 1 0 0 0

Num ber o f b a n k s ............................................................................ 14,190 61 351 2,251 3,200 4,636 1,948 932 634 93 84

226 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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), 1966-1974

Table 115. Ratios of income of insured commercial banks in the United States (States and other areas), 

1966-1974

Table 116. Income of insured commercial banks in the United States (States and other areas), 1974 

Banks grouped by class o f bank

Table 117. Income of insured commercial banks operating throughout 1974 in the United States (States 

and other areas)

Banks grouped by amount of deposits

Table 118. Ratios of income of insured commercial banks operating throughout 1974 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), 

1970-1974

Table 120. Ratios of income of insured mutual savings banks in the United States (States and other areas), 

1970-1974

The incom e data received and published by the C orporation relate to 

com m ercial and m u tual savings banks insured by the C orporation.

Commercial banks

P rior to 1969, reports o f incom e and dividends were subm itted to the 

Federal supervisory agencies on e ith e r a cash o r an accrual basis. In 1969, 

banks w ith assets o f $ 5 0 m illio n o r m ore, and beginning in 1970, $25 m illio n 

or m ore, were required to re p o rt consolidated incom e accounts on an accrual 

basis. Sm aller banks co n tin u e to have the o p tio n o f sub m ittin g th e ir reports

on a cash or an accrual basis, except th a t unearned discou nt on instalm ent 

loans, and incom e taxes, m ust be re ported on an accrual basis. Then, there 

was the requirem ent fo r con solida tion o f m a jo rity-o w n e d subsidiaries and 

other non-bank subsidiaries m eeting certain tests. For m ore detail on the 

m ethod o f cash or accrual re p o rtin g by banks, and on the inclusion o f 

subsidiaries in consolidated statem ents o f c o n d itio n and incom e, refer to 

page 205 o f this report.

Incom e data are included fo r all insured banks operating at the end o f the 

respective years, unless indicated otherwise. In a d d itio n , when appropriate, 

adjustm ents have been made fo r banks in operation d u ring part o f the year 

bu t not at the end o f the year.

INCOME OF INSURED BANKS 227

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
In 1969 the R eport o f Incom e was revised to include a more detailed 

breakdow n o f investm ent incom e and separation o f incom e fro m Federal 

funds transactions fro m oth er loan incom e. The accretion o f bond discount 

was encouraged.

U nder "O p e ra tin g expenses," expense o f Federal Funds transactions, 

w hich is now item ized separately, was included p rio r to 1969 under "In te rest on borrow e d m o n e y ." "In te re s t on capital notes and debentures," now 

included in operating expenses, before 1969 was n o t treated as a charge 

against operating earnings o r net incom e. Fixed assets were required to be 

carried on a cost less depreciation basis w ith p e riodic depreciation charged to 

expenses. Beginning in 1969, the item "P ro visio n fo r loan losses" was in ­

cluded under operating expenses. P rior to 1969, transfers to loan loss reserves were included as a charge against net incom e (b ut n o t against operating incom e); actual losses charged to loan loss reserves were treated as a 

m em orandum item (see discussion be lo w ).

Beginning in 1969, "A p p lic a b le incom e taxe s" on incom e before securities gains or losses is an estim ate o f the ta x lia b ility th a t a bank w ould incur 

if its taxes were based solely on operating incom e and expenses; th a t is, if 

there were no secu rity gains or losses, no e xtra o rd in a ry items, etc.

Incom e fro m securities gains and losses, reported both gross and after 

taxes, p rio r to 1969 was reported as separate gain or loss items. It is now 

included, along w ith a s u b tra ctio n fo r m in o rity interest in consolidated subsidiaries, before arriving at net incom e (after taxes).

The m em orandum item total provision fo r incom e taxes includes a p p licable taxes on operating incom e, ap plicable taxes on securities gains and 

losses and e xtra o rd in a ry item s, and tax effects on differences between the 

provision fo r loan losses charged to operating expense and transfers to the 

reserve fo r bad de bt losses on loans. F o r banks generally the transfers to 

reserve fo r bad debts have exceeded the provision fo r loan losses and consequently have tended to reduce ta x lia b ility . (Since enactm ent of the Tax 

Reform A c t o f 1969, ad ditio ns to loan loss reserves fo r Federal tax purposes 

have been subject to a schedule o f lim ita tio n s th a t w ill eventually p u t these 

reserves on a cu rre n t experience basis.)

In com paring the 1969-1974 reports w ith p rio r data, certain generalizations are applicable. Because o f th e inclusion o f ad ditio nal items in "O p e rating expenses," "In c o m e before taxes o r secu rity gains o r losses" is understated, com pared w ith the cu rre n t operating incom e o f p rio r reports. On the 

other hand, "N e t in co m e " fo r years p rio r to 1969 tends to be som ewhat 

understated because it includes transfers to bad debt reserves w hich w ould 

generally exceed the provision fo r loan losses. Table 115 provides several 

operating ratios w hich a ffo rd com parisons between years p rio r to 1969 and 

more recent earnings experience.

Mutual savings banks

For a discussion o f the re p o rt o f incom e and expenses fo r m utual savings 

banks in 1970 and previous years, see the 1951 Annual R eport, pp. 50-52.

Beginning December 31, 1971, incom e and expenses fo r m utual savings 

banks are re ported on a consolidated basis in the same manner as required o f 

com m ercial banks, including all dom estic branches, dom estic bank premises 

subsidiaries, and oth er sig n ifica n t nonbanking dom estic subsidiaries (see page 

206).

Beginning in 1972, banks w ith total resources o f $25 m illio n or m ore are 

required to prepare th e ir reports on the basis o f accrual accounting. All 

banks are required to re port incom e taxes on an accrual basis.

Under operating incom e, certain incom e fro m securities fo rm e rly in the 

" o th e r" category are shown separately beginning in 1971. Incom e fro m U.S. 

Treasury securities is com bined w ith incom e fro m U.S. G overnm ent agency 

and c o rp o ra tio n securities. S om ewhat few er 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 o f the 

report (see discussion below ). In 1970 and p rio r years (table 119), the 

am ounts shown fo r this expense item are "Recoveries credited to valuation 

adjustm ent provisions on real estate mortgage loans" less "T h e realized losses 

charged to valuation adjustm ent provisions on these loans," w hich were 

reported in those years in the m em oranda section.

The no noperating sections o f the re port were condensed in 1971, w ith 

realized gains and losses on securities, mortgage loans, and real estate reported " n e t" rather than in separate sections and captions as before. Detailed data fo rm e rly reported on reconcilem ent o f valua tio n adjustm ent provisions was alm ost e n tire ly elim inated, except fo r a sim ple re co n cilia tio n o f 

surplus.

228 FEDERAL DEPOSIT INSURANCE C O R P O R A T IO N

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Sources of data

N ational banks and State banks in the D istrict o f C olum bia not members 

o f the Federal Reserve S ystem : O ffic e o f the C o m p tro lle r o f the Currency.

State bank members o f the Federal Reserve System: Board o f Governors 

o f the Federal Reserve System .

O ther insured banks: Federal D eposit Insurance C orporation.

R E P O R T IN G O F LO S S ES A N D R E S E R V E S FO R LO SSES O N L O A N S ,

1948 - 1974

Commercial banks

Use o f the reserve m e thod o f loan accounting was greatly encouraged 

when, in 1947, the Internal Revenue Service set form al standards fo r loan 

loss transfers to be p e rm itte d fo r Federal tax purposes. In th e ir reports to 

the Federal bank supervisory agencies p rio r to 1948, insured com m ercial 

banks included in non-operating incom e the am ounts o f recoveries on loans 

(applicable to p rio r charge-offs fo r losses) w hich included, fo r banks using 

the reserve m ethod, transfers fro m loan loss reserves. D irect charge-offs and 

losses on loans, and transfers to reserves were included together in nonoperating expenses. Banks using the reserve m ethod were no t required to 

re port separately th e ir actual losses, th a t is, charges against loan loss reserves. 

(In statem ents o f c o n d itio n p rio r to 1948, insured banks reported loans on a 

net basis o n ly , afte r allow ance fo r loan loss reserves. Beginning w ith the June 

30, 1948 re port, banks were required to report gross loans, w ith to ta l valuatio n reserves these set up pursuant to Internal Revenue Service regulations, 

and o th e r reserves show n separately. However, instalm ent loans o rd in a rily 

con tin ued to be reported net if the instalm ent paym ents were applied d ire c tly to th e re d u ctio n o f th e loan.)

Beginning w ith th e year 1948, th e incom e reports were revised to show 

separately, in a m em oranda section, the losses charged to reserves. These 

item s c o n tin u e d to be com bined in th e non-operating expense section u n til 

1961. Recoveries credited to reserves were also item ized in the mem oranda 

section, beginning in 1948, as were the am ounts transferred to and fro m

reserves during th e year. Each o f these debits and credits were segregated as 

to reserves set up pursuant to IRS regulations, and o th e r reserves. Losses and 

recoveries, and transfers to and fro m reserves, b u t n o t the specific tax-related 

transfers, were separately reported in the C orp ora tio n's published statistics.

Several im p o rta n t revisions were made in the fo rm a t o f the incom e reports o f com m ercial banks in 1969 (see above). A new e n try en title d "P ro ­

vision fo r loan losses" was included under operating expenses. This item 

includes actual loan losses (charge-offs less recoveries) during the year or, at 

the o p tio n o f the bank, an am ount derived by ap plying the average loan loss 

percentage fo r the five m ost recent years to the average am ount o f loans 

du ring the cu rre n t year. Since 1969, banks con tin ue to report transfers to 

and fro m reserves in m em oranda section o f the incom e statem ent, b u t this 

detailed in fo rm a tio n is no t regularly published by the C orporation. (Beginning June 30, 1969, all loan loss reserves are shown on the righ t side o f the 

c o n d itio n statem ent; gross loans o n ly are reported on the assets side.)

Mutual savings banks

W hile m utual savings banks reported loan losses and transfers to loss 

reserves p rio r to 1951, the C orp ora tio n's published statistics did n o t show 

these data separately, as was the case also fo r recoveries and transfers fro m 

reserves. When the reporting fo rm was revised extensively in 1951, these 

various nonoperating expenses were item ized, and a mem oranda section was 

added to show also the losses and recoveries in reserve accounts. "R e a lize d " 

losses (and recoveries) fo r w hich no provision had been made, and transfers 

were included in the no noperating expense (incom e) section, w h ile dire ct 

w rite-dow ns and oth er loan losses fo r w hich provision had been made, were 

reported separately in m em oranda account.

F o llow ing 1951, the loan loss section o f the reports o f co n d itio n and 

incom e and expense remained unchanged u n til 1971. Beginning in 1971, the 

incom e re port was revised in a m anner sim ila r to changes in 1969 applicable 

to com m ercial banks, to show actual net loan losses as operating expenses 

(m utual savings banks do n o t have the o p tio n available to com m ercial banks 

o f reportin g losses based on recent years average experience.) A t the same 

tim e , all valua tio n reserves were merged in to surplus accounts on statements 

o f c o n d itio n sub m itted to th e Federal supervisory agencies.

INCOME OF INSURED BANKS 229

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 114. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1966-1974

(A m o u n ts in thousands o f dollars)

Incom e item 1966 1967 1968 1 9 6 9 1 1970 1971 1972 1973 1974

Operating in co m e -to ta l...........................................................................

Interest and fees on loans2 ..................................................................

Income on Federal funds sold and securities purchased under

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

53,036,327

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

68,160,779

47,138,740

3,712,304

3,441,273

2,018,561

4,453,876

467,873

1,506,206

1,459,858

1,408,525

2,553,563

Interest on U.S. Treasury se c u ritie s....................................................

Interest and dividends on securities of other U.S. Government

2,317,794 2,601,900 3,004,655

Interest and dividends on other securities3 ...........................................

Trust department in co m e ....................................................................

Service charges on deposit a c co u n ts....................................................

Other service charges, collection and exchange charges, comm issions,

and fees .......................................................................................

Other operating in c o m e ......................................................................

Operating expense-total4 ........................................................................

Salaries and wages of officers and e m p lo y ee s.......................................

Pensions and other employee b e n e fits................................................

Interest on d e p o s it s ...........................................................................

Expense of Federal funds purchased and securities sold under

agreements to repurchase5 ............................................................

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

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

5,878,812

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

58,909,998

9,797,706

1,788,727

27,888,772

5,985,504

917,638

283,203

2,052,345

2,438,528

386,183

1,360,721

2,286,132

6,549,250

Interest on other borrowed m oney5 ....................................................

Interest on capital notes and debentures4 . .............

3 01,768 266,476 528,986

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

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 e xpe n se s....................................................................

Incom e before income taxes and securities gains or losses6 . . .

2,045,347 2,294,675 2,684,401

6,730,014 7,127,818 6,713,027 7,250,947 8,706,527 9,250,781

Net current operating earnings (old basis) 4,946,562 5,227,969 6,124,167

Applicable income taxes6 ....................................................................... 2,164,419

4,565,595

-237,707

-5 1 2 ,2 4 2

-2 7 4 ,5 3 5

4,327,888

6,914

3,994

-2 ,9 2 0

235

4,334,567

2,173,775

4,954,043

-103,695

-2 2 4 ,0 2 8

-1 2 0 ,3 3 3

4,850,348

-12,810

-3 5 ,8 6 5

-2 3 ,0 5 5

245

4,837,293

1,689,146

5,023,881

213,245

359,279

146,034

5,237,126

-639

-1 2 ,5 5 2

-1 1 ,9 1 3

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

-7 3 ,4 5 8

-4 6 ,3 2 3

6,558,292

21,561

30,817

9,256

659

6,579,194

2,084,028

7,166,753

-87,052

-1 6 1 ,2 4 7

-7 4 ,1 9 5

7,079,701

11,920

17,877

5,957

357

7,091,264

Incom e before securities gains or losses6 ..................................................

Securities gains or losses net6 ..................................................................

G r o s s ................................................................................................ -3 9 2 ,4 4 7 -4 ,3 1 2 -4 3 8 ,5 2 0

Net income before extraordinary items6 ..................................................

Extraordinary charges or credits net6 ......................................................

TaxeS

Less m inority interest in consolidated subsidiaries6 ...................................

Net income .........................................................................................

Recoveries charge~offs transfers from reserves net -839,869 -904,645 -992,665

230 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
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 t a x e s ..............................................................

Federal income t a x e s .........................................................................

State and local income taxes ..............................................................

Net income after taxes (old b a s is )............................................................

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

1,759,739

1,357,394

402,345

2,684,340 3,141,858 3,425,938

Dividends on capital-total7 ......................................................................

Cash dividends declared on com m on sto c k ..........................................

Cash dividends declared on preferred stock7 .......................................

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

2,768,104

2,765,674

2,430

M em oranda8

Recoveries credited to reserves:

On lo a n s.............................................................................................

On securities.......................................................................................

Losses charged to reserves:

On lo a n s.............................................................................................

On securities.......................................................................................

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

3 63,663

6,243

1,250,989

4,333

3 88,846

2,061

1,548,033

5,440

461,350

1,651

2,418,281

3,120

Average assets and liabilities9 

A sse ts-total ...........................................................................................

Cash and due from b a n k s ...................................................................

U.S. Treasury se c u ritie s.....................................................................

Obligations of States and political subdivisions1 0 .................................

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 

56,724,0831 1 

5 8 ,0 1 1,20011 

11,839,13011 

283,479,251 

1 9,608,43511

543,880,408

89,089,607 

54,198 ,4 0 7 11 

62,012,77111 

12,821,68711 

301,667,242 

24,090,6941 1

603,422,720

95,673,527 

59,923,56211 

7 4,606,15311 

18,216 ,0641 1 

327,633,687 

27,369,7 2 7 11

679,113,973

102,969,933 

6 1 ,978,4901 1 

84,210,3961 1 

23,863,05111 

376,543,347 

29,548,75611

776,702,572

110,168,143 

58,603,9251 1 

89,241.78011 

29,355,715 11 

453,238,907 

36,094,10 2 11

871,394,495

122,224,773 

52,822,04311 

94,524,5351 1 

35,256,60311 

519,572,131 

46,994,410 1 1

Other securities10 ...............................................................................

Loans and d isco u n ts...........................................................................

All other assets...................................................................................

Liabilities and capital-total

Total d eposits.....................................................................................

Demand deposits...........................................................................

Time and savings deposits..............................................................

Borrow ings and other lia b ilitie s..........................................................

Total capital accounts ........................................................................

Capital notes and debentures..........................................................

Equity capital...............................................................................

Num ber of employees (end of p e rio d )......................................................

Num ber of banks (end of period)..............................................................

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

391,255,121

340,336,714

185,336,407

155,000,307

20,067,721

30,850,686

1,710,785

29,139,901

425,619,337

368,906,501 

194,982,924

173,923,577

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

200,977,814

46,642,486

38,214,658

2,027,427

36,187,231

543,880,408

449,522,141 

237,588,875

211J3 3,266

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

293,708,282

347,097,926

80,677,846

55,218,518

4,044,715

51,173,803

871,394,495

710,029,868

307,363,186

402,666,682

100,573,737

60,790,890

4,204,891

56,585,999

777,361 815,037 866,725 904,008 959,867 980,660 1,025,997 1,093,616 1,160,585

13,541 13,517 13,488 13,473 13,511 13,612 13,733 13,976 14,228

1 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. 227-229; also see notes to tables.

2 "lnco m e on Federal funds so ld " was included in "Interest and discount on loans" in 1968 and prior years (see 1968 report, p. 198).

3 lncome from "Securities of other U.S. Government agencies and corporations" and from "Obligations of States and political subdivisions" was included in income from "O the r 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"E xpe n se of Federal funds purchased and securities sold under agreements to repurchase" was included in "Interest on borrowed m o n e y" in 1968 and prior years.

6 Data are not available prior to 1969. See page 228 of this report.

7 ln 1968 and prior years, "D ivide n ds declared on preferred sto c k " was reported in combination with "Interest on capital notes and debentures."

in c lu 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.

9 Averages of am ounts reported at beginning, middle, and end of year. 1 9 6 6 -1 9 6 8 averages of securities and loans have been revised to gross basis.

10 ln 1968 and prior years, "O bligations of States and political subdivisions" were included in "O ther securities."

11 Securities held in trading accounts are included in "A ll other assets."

INCOME OF INSURED BANKS 231

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), 1966-1974

Incom e item 1966 1967 1968 1969 1970 1971 1972 1973 1974

Am ounts per $100 of operating income

Operating 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 .......................................................................................................... 68.11 67.24 67.20 69.91 69.05 65.84 66.23 71.39 74.60

Interest on U.S. Treasury se c u ritie s ....................................................................... 11.88 11.95 11.79 9.23 8.87 9.34 8.44 6.53 5.05

7 19 7 55 8 60 8.65 7.29 6.53

Interest and dividends on other securities3.......................................................... 7.85 8.74 9.33 2.23 2.42 3.17 3.64 3.48 3.65

T rust departm ent income ........................................................................................ 3.88 3.77 3.56 3.32 3.26 3.46 3.40 2.75 2.21

Service charges on deposit accounts .................................................................... 4.69 4.53 4.14 3.64 3.39 3.39 3.14 2.50 2.14

Other charges, comm issions, fees, etc..................................................................... 1.81 1.89 1.88 2.25 2.43 2.72 2.67 2.36 2.07

Other operating in c o m e ............................................................................................. 1.78 1.88 2.10 2.23 3.03 3.48 3.78 3.70 3.75

Operating expense-total4 ........................................................................ 74.64 76.00 75.96 78.15 79.47 81.54 81.98 83.58 86.43

Salaries and w a g e s ....................................................................................................... 20.99 20.83 20.02 19.08 19.18 19.81 19.27 16.17 14.38

Pensions and other b e n e fits ...................................................................................... 3.07 3.07 2.97 2.93 3.05 3.28 3.30 2.93 2.62

Interest on tim e and savings d e p o sits.................................................................... 32.09 33.88 34.07 31.78 30.20 33.60 34.40 37.40 40.92

Interest on borrow ed m oney5 ................................................................................ 1.55 1.22 2.08 5.65 5.67 3.79 4.37 8.78 10.54

Occupancy expense o f bank premises, n e t .......................................................... 4.11 4.01 3.81 3.48 3.61 3.88 3.93 3.36 3.01

F urniture and equipm ent, etc................................................................................... 2.35 2.45 2.48 2.51 2.62 2.80 2.70 2.26 2.00

1.69 2.03 2.38 2.42 2.38 3.35

Other operating expenses ......................................................................... .............. 10.48 10.54 10.53 11.03 13.11 12.00 11.59 10.30 9.61

Income before income taxes and securities gains or losses........................... 21.85 20.53 18.46 18.02 16.42 13.57

Net current operating earnings (old b asis).................................................. 25.36 24.00 24.04

Am ounts per $100 of total assets

Operating in c o m e - to ta l.................................................................................................. 4.99 5.12 5.38 5.97 6.38 6.03 5.93 6.83 7.82

Net curre n t operating earnings (old basis) 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 1.06

Net incom e6 ......................................................................................................................... .69 .74 .72 .84 .89 .87 .33 .85 .81

Am ounts per $100 of total capital accounts

Net incom e6 ......................................................................................................................... 8.70 9.56 9.70 11.4 8 7 11.8 9 7 1 1.857 11.607 12.147 11.89 7

Cash dividends declared on com m on s t o c k ............................................................... 4.02 4.08 4.21 4.61 4.94 4.97 4.41 4.39 4.55

Net a d ditions to capital fro m in c o m e ......................................................................... 4.46 5.22 5.20 6.71 6.80 6.71 6.96 7.51 7.11

Am ounts per $100 of equity capital

Net incom e6 ......................................................................................................................... 9.21 10.14 10.31 11.98 12.37 12.39 12.25 12.86 12.53

Special ratios

Incom e on loans per $100 o f loans1 ............................................................................ 6.20 6.35 6.75 7.60 7.95 7.31 7.08 8.35 9.79

Incom e on U.S. Treasury securities per $100 o f U.S. Treasury securities . . . 4.13 4.54 4.88 5.02 5.68 5.67 5.48 5.91 6.51

Incom e on obligations o f States and p o litic a l subdivisions per $100 of

obligations of States and p o litica l subdivisions2 ................................................ 3.82 4.23 4.19 4.15 4.33 4.71

Incom e on other securities per $100 o f o th e r securities3 ................................... 3.25 3.45 3.64 5.79 6.55 6.34 6.15 6.28 7.05

Service charges per $ 100 o f demand d e p o s its .......................................................... .49 .51 .49 .49 .50 .49 .47 .45 .47

Interest paid per $100 o f tim e and savings deposits................................................ 4.04 4.24 4.48 4.87 4.95 4.78 4.66 5.71 6.93

N um ber of banks (end of p e r io d ) ................................................................................. 13,541 13,517 13,488 13,473 13,511 13,612 13,733 13,976 14,228

1 1ncludes Federal funds sold.

2"In 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 ther U.S. G overnm ent agencies and corporations; includes interest on State and local governm ent obligations before 1969.

I nterest 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 4 , and "P rovision fo r loan losses” was 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 fu n d s purchased.

6 Because o f changes in the fo rm o f reporting by banks, figures in 1 9 6 9 -1 9 7 4 are not fu lly comparable w ith those in 1968 and p rio r years; see table 114 and pp. 227-229.

7 ln com puting this ra tio , interest on capital notes and debentures has been added to net income, w ith tax adjustm ent at the regular corporate tax rate.

232 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), 1974

BANKS GROUPED BY CLASS OF BANK 

(Amounts in thousands of dollars)

Incom e item Total

Members F.R. System N onmembers 

F.R. System

Operating 

th ro u g h o u t 

the year

Operating 

less than 

N ational State fu ll year

Operating in c o m e -to ta l........................................................................................................ 68,160,779 40,448,342 13,392,280 14,320,157 68,067,597 93,182

Interest and fees on lo a n s ............................................................................................................................... 47,138,740 28,418,563 9 ,647,114 9,073,063 47,099,147 39,593

Incom e on federal funds sold and securities purchased under agreements to re s e ll.................... 3,712,304 2,173,089 549,879 989,336 3,683,192 29,112

Interest on U.S. Treasury securities ........................................................................................................... 3,441,273 1,752,716 590,079 1,098,478 3,434,155 7,118

Interest and dividends on securities o f o ther U.S. G overnm ent agencies and corporations . . . 2,018,561 1,018,360 250,081 750,120 2,014,296 4,265

Interest on obligations o f States and p o litica l s u b d iv is io n s ................................................................ 4,453,876 2,531,299 769,482 1,153,095 4,451,979 1,897

Interest and dividends on oth e r se c u ritie s ................................................................................................. 467,873 258,901 66,800 142,172 465,925 1,948

T rust departm ent in c o m e ............................................................................................................................... 1,506,206 853,728 525,317 127,161 1,503,646 2,560

Service charges on deposit a c c o u n ts ........................................................................................................... 1,459,858 827,191 195,502 437,165 1,457,839 2,019

O ther service charges, co llection and exchange charges, commissions, and fees........................... 1,408,525 938,515 213,203 256,807 1,407,094 1,431

O ther operating in c o m e ................................................................................................................................. 2,553,563 1,675,980 584,823 292,760 2,550,324 3,239

Operating e x p e n se -to ta l...................................................................................................... 58,909,998 35,241,442 11,577,100 12,091,456 58,813,939 96,059

Salaries and wages o f officers and e m p lo y e e s ......................................................................................... 9,797,706 5,593,025 1,835,066 2,369,615 9,773,503 24,203

Pensions and o th e r em ployee b e n e fits ........................................................................................................ 1,788,727 1,033,991 372,452 382,284 1,786,159 2,568

Interest on deposits ......................................................................................................................................... 27,888,772 16,584,980 5,228,054 6,075,738 27,860,894 27,878

Expense o f federal funds purchased and securities sold under agreements to repurchase . . . . 5,985,504 4,277,220 1,436,533 271,751 5,984,753 751

Interest on o th e r borrow ed m o n e y ............................................................................................................. 917,638 519,256 352,446 45,936 917,314 324

Interest on capital notes and d e b e n tu re s ................................................................................................... 283,203 147,782 69,508 65,913 283,161 42

O ccupancy expense o f bank premises, net .............................................................................................. 2.052,345 1,146,564 456,814 448,967 2,045,727 6,618

Gross occupancy expense....................................................................................................................... 2,438,528 1,398,737 530,176 509,615 2,431,759 6,769

Less rental income...................................................................................................................................... 386,183 252,173 73,362 60,648 386,032 151

F u rn itu re and equipm ent, d epreciation, rental costs, servicing, etc.................................................. 1,360,721 811,897 224,743 324,081 1,357,229 3,492

Provision fo r loan lo s s e s .................................................................................................................................. 2,286,132 1,391,805 466,173 4 28,154 2,282,090 4,042

O ther operating e x p e n s e .................................................................................................................................. 6,549,250 3,734,922 1,135,311 1,679,017 6,523,109 26,141

Income before income taxes and securities gains or lo s s e s ...................................................... 9,250,781 5,206,900 1,815,180 2,228,701 9,253,658 -2,877

Applicable income taxes........................................................................................................ 2,084,028 1,122,623 468,344 493,061 2,083,755 273

Income before securities gains or lo s s e s ................................................................................. 7,166,753 4,084,277 1,346,836 1,735,640 7,169,903 -3,150

Net securities gains or losses.................................................................................................. -87,052 -42,420 -2 6,835 -1 7,797 -8 7,356 304

Gross ..................................................................................................................................................................... -1 6 1 ,2 4 7 -8 0 ,6 9 5 -5 2 ,9 8 7 -2 7 ,5 6 5 -1 6 1 ,7 6 7 520

Taxes ..................................................................................................................................................................... -7 4 ,1 9 5 -3 8 ,2 7 5 -2 6 ,1 5 2 -9 ,7 6 8 -7 4 ,4 1 1 216

Net income before extraordinary it e m s ................................................................................. 7,079,701 4,041,857 1,320,001 1,717,843 7,082,547 -2,846

Extraordinary charges or credits, n e t ..................................................................................... 11,920 2,758 480 8,682 11,844 76

Gross ..................................................................................................................................................................... 17,877 7,991 -5 5 2 10,438 17,785 92

T axes....................................................................................................................................................................... 5,957 5,233 -1 ,0 3 2 1,756 5,941 16

INCOME OF INSURED BANKS 233

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 116. INCOME OF INSURED COMM ERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1974— CONTINUED

BANKS GROUPED BY CLASS OF BANK 

(Amounts in thousands of dollars)

Incom e item Total

Members F.R. System N onmembers 

F.R . System

O perating 

th ro u g h o u t 

the year

O perating 

less than 

N ational State fu ll year

Less m in o rity interest in consolidated su b sid ia rie s........................................................................................ 357 141 0 216 357 0

Net incom e ................................................................................................................................................................. 7,091,264 4,044,474 1,320,481 1,726,309 7,094,034 -2 ,7 70

Dividends on c a p ita l- to ta l..................................................................................................................................... 2,768,104 1,671,209 600,228 496,667 2,767,452 652

Cash dividends declared on com m on s to c k ............................................................................................... 2,765,674 1,670,232 600,060 495,382 2,765,022 652

Cash dividends declared on preferred s to c k ............................................................................................... 2,430 977 168 1,285 2,430 0

T otal provision fo r incom e t a x e s ........................................................................................................................ 1,759,739 968,418 348,996 442,325 1,759,507 232

Federal incom e ta x e s .......................................................................................................................................... 1,357,394 751,177 227,436 378,781 1 ,357,275 119

State and local incom e ta x e s ........................................................................................................................... 402,345 217,241 121,560 6 3,544 4 0 2,232 113

M em oranda1

Recoveries credited to reserves:

On lo a n s ................................................................................................................................................................. 461,350 303,018 60,510 97,822 461,227 123

On s e c u ritie s ......................................................................................................................................................... 1,651 1,066 38 547 1,651 0

Losses charged to reserves:

On lo a n s ................................................................................................................................................................. 2,418,281 1,493,948 458,488 465,845 2 ,417,544 737

On s e c u ritie s ......................................................................................................................................................... 3,120 2,115 140 865 3,120 0

N um ber o f em ployees (end o f p e r io d ) .............................................................................................................. 1,160,585 664,416 190,909 305,260 1,156,111 4,474

N um ber o f banks (end o f p e rio d )........................................................................................................................ 14,228 4,708 1,074 8,446 13,863 365

1 1ncludes on ly recoveries credited, 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.

234 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 1974 IN THE UNITED STATES

(STATES AND OTHER AREAS)

BANKS GROUPED BY AM O UNT 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

O perating in c o m e -to ta l..................................................... 68,067,597 2,063 34,605 614,795 1,850,723 5,894,016 5,490,383 5,310,631 11,521,803 6,519,197 30,829,381

Interest and fees on lo a n s ........................................... 47,099,147 786 16,357 325,046 1,042,353 3,562,633 3,493,326 3,461,429 7,710,276 4,557,174 22,929,767

Incom e on federal funds sold and securities 

purchased under agreements to r e s e ll............. 3,683,192 551 6,283 85,731 203,701 4 9 4,354 363,071 316,685 684,625 366,747 1,161,444

Interest on U.S. Treasury s e c u ritie s ....................... 3,434,155 339 6,134 86,567 210,301 547,461 412,901 343,351 613,670 294,059 919,372

Interest and dividends on securities o f o ther 

U.S. G overnm ent agencies and c o rp o ra tio n s . 2,014,296 251 2,605 51,585 136,948 337,051 265,004 237,460 4 0 3,965 120,922 458,505

Interest on obligations of States and

p o litic a l s u b d iv is io n s .............................................. 4 ,451,979 18 686 24,571 127,139 515,275 516,538 495,909 9 13,858 454,382 1,403,603

Interest and dividends on o th e r securities .......... 465,925 16 284 4,766 13,392 46,015 48,552 51,812 97,406 49,184 154,498

T ru st depa rtm e nt incom e ........................................... 1,503,646 0 1 459 4,586 17,452 36,607 73,444 297,340 172,939 900,818

Service charges on deposit a c c o u n ts ....................... 1,457,839 43 979 17,697 57,754 200,621 183,876 153,860 284,246 143,302 415,461

O ther service charges, co lle ctio n and exchange 

charges, comm issions, and fe e s .......................... 1,407,094 48 590 10,626 31,450 97,901 92,461 95,775 279,063 182,300 616,880

O ther operating in c o m e .............................................. 2,550,324 11 686 7,747 23,099 75,253 78,047 80,906 237,354 178,188 1,869,033

O perating e x p e n s e -to ta l................................................... 58,813,939 1,359 26,560 492,360 1,490,997 4,805,589 4,611,218 4,561,633 10,077,751 5,742,662 27,003,810

Salaries and wages o f o fficers and employees . . . 9,773,503 655 9,197 128,370 330,746 956,732 871,124 839,046 1,848,117 977,862 3,811,654

Pensions and o ther em ployee b e n e fits .................. 1,786,159 72 858 15,035 45,647 149,479 143,653 143,286 330,453 183,413 774,263

Interest on d e p o s its ..................................................... 27,860,894 280 8,961 220,737 735,021 2,487,445 2,388,450 2,361,338 4,756,828 2,491,870 12,409,964

Expense o f federal funds purchased and securities sold under agreements to repurchase . . . 5,984,753 4 17 891 5,531 26,650 59,812 122,249 728,764 681,174 4,359,661

Interest on other borrow ed m o n e y .......................... 917,314 3 8 641 2,230 11,410 12,534 18,101 68,990 81,986 721,411

Interest on capital notes and debentures............... 283,161 0 7 298 1,883 11,098 15,534 21,095 56,635 3 7,214 139,397

O ccupancy expense o f bank premises, n e t .......... 2 ,045,727 59 966 17,083 49,474 164,356 169,006 173,298 4 05,066 200,818 865,601

Gross occupancy expense.................................... 2,431,759 60 1,002 17,977 52,599 176,447 186,281 203,290 494,461 270,845 1,028,797

Less rental income................................................... 386,032 1 36 894 3,125 12,091 17,275 29,992 89,395 70,027 163,196

F u rn itu re and equipm ent, depreciation, rental 

costs, servicing, etc.................................................. 1,357,229 34 755 14,919 42,670 133,312 126,576 125,211 308,996 158,971 445,785

P rovision fo r loan losses.............................................. 2,282,090 26 909 14,808 50,120 158,563 164,531 156,197 318,821 236,491 1,181,624

O ther operating expenses........................................... 6,523,109 226 4,882 79,578 227,675 706,544 659,998 601,812 1,255,081 692,863 2,294,450

Incom e before incom e taxes and securities gains 

or lo sse s............................................................................ 9,253,658 704 8,045 122,435 359,726 1,088,427 879,165 748,998 1,444,052 776,535 3,825,571

A pplicable incom e ta x e s ................................................... 2,083,755 167 2,049 35,419 95,120 263,790 185,839 134,477 262,364 147,136 957,394

INCOME OF INSURED BANKS 235

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 117. INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1974 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

banks1

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 

m ore

Income before securities gains or losse s ................. 7,169,903 537 5,996 87,016 264,606 824,637 693,326 614,521 1,181,688 629,399 2,868,177

Net securities gains or losses ................................ -8 7 ,35 6 1 -6 6 -1 ,2 75 -3,233 -7 ,3 05 -5 ,7 55 -5 ,7 66 -9 ,9 47 -9,593 -44,417

G ro s s ................................................................................. -1 6 1 ,7 6 7 - 2 - 6 8 -1 ,4 9 2 - 4 ,5 5 6 -1 0 ,9 6 4 -1 0 ,1 3 5 -1 0 ,5 9 4 -1 7 ,9 0 1 -1 7 ,4 3 5 - 8 8 ,6 2 0

Taxes ................................................................................. -7 4 ,4 1 1 - 3 - 2 - 2 1 7 -1 ,3 2 3 -3 ,6 5 9 -4 ,3 8 0 - 4 ,8 2 8 - 7 ,9 5 4 - 7 ,8 4 2 -4 4 ,2 0 3

Net income before extraordinary ite m s ................. 7,082,547 538 5,930 85,741 261,373 817,332 687,571 608,755 1,171,741 619,806 2,823,760

Extraordinary charges or credits, n e t..................... 11,844 0 -3 0 397 1,185 3,007 3,412 5,766 3,938 5,076 -10,907

G ro s s ................................................................................. 17,785 0 - 3 3 479 1,486 2,847 3,980 7,142 3,722 7,981 -9 ,8 1 9

Taxes ................................................................................. 5,941 0 - 3 82 301 - 1 6 0 568 1,376 -2 1 6 2,905 1,088

Less minority interest in consolidated subsidiaries.. 357 0 0 0 0 99 31 44 34 42 107

Net in c o m e ......................................................... 7,094,034 538 5,900 86,138 262,558 820,240 690,952 614,477 1,175,645 624,840 2,812,746

Dividends on capital-total .................................. 2,767,452 77 1,136 17,704 55,284 196,104 206,979 214,384 498,456 305,790 1,271,538

Cash dividends declared on com m on s to c k .......... 2,765,022 77 1,136 17,694 55,247 195,808 206,741 214,042 497,353 305,789 1,271,135

Cash dividends declared on preferred stock . . . . 2,430 0 0 10 37 296 238 342 1,103 1 403

Total provision for income ta x e s ........................... 1,759,507 163 2,016 34,061 89,676 239,615 161,609 111,801 218,313 127,362 774,891

Federal incom e ta x e s ................................................... 1,357,275 152 1,823 30,870 80,824 214,756 140,768 91,803 176,132 106,416 513,731

State and local incom e taxes...................................... 402,232 11 193 3,191 8,852 24,859 20,841 19,998 42,181 20,946 261,160

Memoranda2

Recoveries credited to reserves (n o t included above)

77,330 52,040 161,387 On lo a n s ........................................................................... 461,227 2 185 4,886 16,433 57,832 50,376 40,756

On securities .................................................................. 1,651 0 0 10 64 248 96 245 309 200 479

Losses charged to reserves (n o t included above):

374,464 253,100 1,127,105 On lo a n s ........................................................................... 2,417,544 20 903 14,752 57,058 199,362 205,687 185,093

On securities ................................................................. 3,120 0 0 38 397 428 313 447 1,372 125 0

N um ber o f employees, December 3 1 ............................ 1,156,111 92 1,302 16,391 41,760 124,925 114,480 108,299 233,703 117,643 397,516

N um ber o f banks, December 3 1 ...................................... 13,863 29 260 2,103 3,160 4,627 1,942 931 634 93 84

1 This group o f banks is the same as the group shown in table 116 under the heading "O perating th ro u g h o u t the year".

2 Includes only recoveries credited, and losses charged, to reserves. A ll o ther recoveries and losses on loans and securities are credited, and charged, to undivided p ro fits and are included above.

236 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 1974 IN THE UNITED STATES

(S T A T E S A N D O T H E R A R E A S )1 

BANKS GROUPED ACCORDING TO AM O UNT OF DEPOSITS

Banks w ith deposits o f -

Incom e item Less 

than 

$1 m illio n

$1 m illio n 

to

$2 m illion

$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

Am ounts per $100 of operating income

Operating 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 $100.00

Incom e on loans2 ............................................................................................... 64.81 65.42 66.81 67.33 68.83 70.24 71.14 72.86 75.53 78.15

Interest on U.S. Treasury securities3 ............................................................ 16.43 17.73 14.08 11.36 9.29 7.52 6.47 5.33 4.51 2.98

Interest on State and local governm ent obligations3 .............................. .87 1.98 4.00 6.87 8.74 9.41 9.34 7.93 6.97 4.55

Interest and dividends on other securities4 ................................................ 12.94 8.35 9.17 8.12 6.50 5.71 5.45 4.35 2.61 1.99

Trust departm ent incom e ................................................................................ 0 0 .07 .25 .30 .67 1.38 2.58 2.65 2.92

Service charges on deposit acco u n ts.............................................................. 2.09 2.83 2.88 3.12 3.40 3.35 2.90 2.47 2.20 1.35

O ther charges, com m issions, fees, etc............................................................ 2.33 1.71 1.73 1.70 1.66 1.68 1.80 2.42 2.80 2.00

Other operating incom e3 ................................................................................... .53 1.98 1.26 1.25 1.28 1.42 1.52 2.06 2.73 6.06

Operating expense-total .................................................................. 65.87 76.75 80.09 80.56 81.53 83.99 85.90 87.47 88.09 87.59

Salaries and w a g e s .............................................................................................. 31.75 26.58 20.88 17.87 16.23 15.87 15.80 16.04 15.00 12.37

Pensions and o th e r b e n e fits .............................................................................. 3.49 2.48 2.45 2.47 2.54 2.62 2.70 2.87 2.81 2.51

Interest on tim e and savings d e p o sits............................................................ 13.57 25.89 35.90 39.71 42.20 43.50 44.47 41.28 38.22 40.25

Interest on borrow ed m oney5. ........................................................................ .34 .09 .30 .52 .83 1.60 3.04 7.42 12.28 16.93

Occupancy expense o f bank premises, n e t.................................................. 2.86 2.79 2.78 2.67 2.79 3.08 3.26 3.52 3.08 2.81

F u rniture and equipm ent, etc........................................................................... 1.65 2.18 2.43 2.31 2.26 2.30 2.36 2.68 2.44 1.45

Provision fo r loan losses ................................................................................... 1.26 2.63 2.41 2.71 2.69 3.00 2.94 2.77 3.63 3.83

Other operating expenses................................................................................... 10.95 14.11 12.94 12.30 11.99 12.02 11.33 10.89 10.63 7.44

Income before income taxes and securities gains or losses ................... 34.13 23.25 19.91 19.44 18.47 16.01 14.10 12.53 11.91 12.41

Am ounts per $100 of total assets6

Operating in c o m e - to ta l.......................................................................................... 7.29 7.16 7.10 7.04 7.05 7.14 7.20 7.52 7.76 7.71

Incom e before incom e taxes and securities gains or losses........................... 2.49 1.66 1.41 1.37 1.30 1.14 1.02 .94 .92 .96

Net in c o m e ................................................................................................................... 1.90 1.22 1.00 1.00 .98 .90 .83 .77 .74 .70

Mem oranda8

Recoveries credited to reserves:

On loans ................................................................................................................. .01 .04 .06 .06 .07 .07 .06 .05 .06 .04

On s e c u ritie s ......................................................................................................... 0 0 (7) (7) (7) (7) (7) (7) (7) (7)

Losses charged to reserves:

On loans ................................................................................................................. .07 .19 .17 .22 .24 .27 .25 .24 .30 .28

On s e c u ritie s ......................................................................................................... 0 0 (7) (7) (7) (7) (7) (7) (7) (7)

INCOME OF INSURED BANKS 237

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 118. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1974 IN THE UNITED 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 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 $ 100 o f to ta l capital accounts6

Net incom e9 ................................................................................................................. 11.97 10.00 10.26 11.72 12.74 11.96 11.54 10.94 10.93 11.51

Cash dividends declared on com m on s to c k ........................................................ 1.71 1.93 2.10 2.46 3.02 3.54 3.96 4.52 5.20 5.08

Net add itio n s to capital fro m in c o m e .................................................................. 10.26 8.07 8.14 9.22 9.63 8.29 7.39 6.16 5.42 6.16

M em oranda8

Recoveries credited to reserves:

On lo a n s ................................................................................................................. .04 .31 .58 .73 .89 .86 .75 .70 .88 .64

On s e c u ritie s .......................................................................................................... 0 0 (7) (7) (7) (7) (7) (7) (7) (7)

Losses charged to reserves:

On loans ................................................................................................................. .45 1.53 1.75 2.54 3.08 3.52 3.42 3.41 4.30 4.50

On s e c u ritie s .......................................................................................................... 0 0 (7) .02 .01 .01 .01 .01 (7) 0

A m o u n ts per $ 1 0 0 o f e q u ity capital6

Net in c o m e .................................................................................................................... 11.97 10.04 10.30 11.83 12.97 12.27 11.96 11.46 11.65 12.39

Special ra tio s6

Incom e on loans per $ 100 o f loans2 .................................................................... 8.93 8.69 8.62 8.53 8.52 8.71 8.85 9.29 9.60 9.80

Incom e on U.S. Treasury securities per $100 o f U.S. Treasury securities3 7.89 7.58 7.23 7.26 7.18 7.00 6.81 6.79 6.72 5.94

Incom e on obligations o f States and p o litica l subdivisions per $100

o f obligations o f States and p o litic a l subdivisions3 .................................

Incom e on oth e r securities per $1 0 0 o f o th er securities4 ............................

4.46 3.90 3.82 4.14 4.36 4.54 4.57 4.59 4.58 4.84

6.31 6.03 6.20 6.40 6.55 6.69 6.73 6.73 7.06 6.74

Service charges per $100 o f demand d e p o s its ................................................... .25 .41 .54 .62 .70 .71 .62 .53 .48 .30

Interest paid per $100 of tim e and savings d e p o s its ...................................... 4.60 4.99 5.11 5.27 5.46 5.75 6.00 6.29 6.57 7.25

Num ber o f banks, December 3 1 ,1 9 7 4 ............................................................... 29 260 2,103 3,160 4,627 1,942 931 634 93 84

1 This group o f banks is the same as the group shown in table 116 under heading "O perating throughout 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 of o ther U.S. G overnm ent agencies and corporations.

5Includes interest on capital notes and debentures and Federal funds purchased.

6 Ratios are based on assets and lia b ilitie s reported at end o f year.

7 Less than 0.005.

8 Includes 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).

238 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 119. INCOME OF INSURED M UTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1970-1974

(Amounts in thousands of dollars)

Incom e item 1970 1971 1972 1973 1974

Operating in c o m e -to ta l................................................................................................................. 3,874,870 4,529,014 5,295,449 6,064,895 6,483,654

Interest and fees on real estate mortgage loans, n e t ........................................................................................... 2,963,859 3,275,859 3,690,871 4,171,520 4,503,214

Interest and fees on real estate mortgage loans, gross................................................................................. 3,031,157 3,344,057 3,760,908 4,240,926 4,570,902

Less: Mortgage servicing fees.............................................................................................................................. 67,298 68,198 70,037 69,406 67,688

Interest and fees on o th e r loans ........................................................................................................ 154,230 163,675 178,126 283,506 337,844

Interest on U.S. G overnm ent and agency securities2 ........................................................................................ 268,370

546,033

352,297

726,665

414,359

730,132

403,940

Interest on corporate b o n d s ........................................................................................................... 693,986 743,944

Interest on State, c o u n ty , and m unicipal ob lig a tion s2 ...................................................................................... 12,789

75,489

105,592

27,669

30,857

91,856

126,256

30,072

52,982

116,901

148,781

35,771

47,028

125,718

170,273

27,875

Interest on o th e r bonds, notes, and debentures2

Dividends on corporate s to c k 2 ..............................................................................................................................

Incom e fro m service o p e ra tio n s ................................................................................................................................. 35,107

O ther operating in c o m e ................................................................................................................................................ 27,688 53,538 68,449 110,943 123,818

Operating e xp e n se s-to tal............................................................................................................... 520,8621 581,693 671,818 811,689 938,705

Salaries ................................................................................................................................................. 217,536 243,446 270,353 307,030 344,304

Pensions and o th e r em ployee b e n e fits .................................................................................................................... 47,072 55,944 63,882 72,567 83,338

Interest on borrow ed m o n e y ...................................................................................................................................... 20,327 7,862 6,713 28,907 66,110

Occupancy expense o f bank premises (in cluding taxes, depreciation, maintenance, rentals), n e t . . . . 60,655 71,113 82,820 96,128 114,206

F u rn itu re and equipm e nt (in cluding recurring d e p re c ia tio n )....................................................................... 22,603 28,365 32,237 37,104 43,815

A ctual net loan losses (charge-offs less recoveries)...................................................................................... 1,363 3,328 4,500 8,994 10,034

O ther operating expenses................................................................................................................ 151,306 171,635 211,313 260,959 276,898

Net operating income before interest and dividends on deposits....................................................... 3,354,0081 3,947,321 4,623,631 5,253,206 5,544,949

Interest and dividends on deposits-total ........................................................................................

Savings deposits2 ............................................................................................................................................................

O ther tim e deposits2 ........................................................................................................................

2,987,200 3,418,845

3 ,058,645

360,200

3,943,233

3,392,798

550,435

4,480,901

3,567,595

913,306

4,916,724

3,607,170

1,309,554

Net operating income after interest and dividends on d e p o sits ......................................................... 366,808 528,476 680,398 772,305 628,225

Net realized gains (or losses) on -total ............................................................................................ — 121,3721 -5 8,286 -14,896 -92,357 -148,844

Securities ............................................................................................................................................ — 91,760 -4 4 ,2 9 0 3,481 -6 5 ,9 7 3 -1 1 1 ,5 0 1

Real estate mortgage lo a n s .............................................................................................................. -2 6 ,3 3 4 -1 2 ,1 3 3 -2 5 ,9 4 4 -2 0 ,1 8 7 - 38,556

Real e s ta te ............................................................................................................................................ . . -5 6 8 -1 ,6 9 0 -5 0 9 -6 7 3 588

O ther tra n s a c tio n s .................................................................................................................................... -2 ,7 1 0 -1 7 3 8,076 - 5 ,5 2 4 625

Less minority interest in consolidated subsidiaries2 ......................................................................... o 34

665,468

o q

Net income before ta x e s................................................................................................................. 245,4361 470,190 679,948 479,381

Franchise and income taxes-total ............................................................................ ... . 78,421 126,601 186,303 201,792 161,870

Federal income t a x .......................................................................................................................... 25,310 63,833 108,679 114,500 81,089

State and local franchise and incom e ta x e s .......................................................................................................... 53,111 62,768 77,624 87,292 80,781

Net in co m e .................................................................................................................................. 167,015 1 343,589 479,165 478,156 317,511

INCOME OF INSURED BANKS 239

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 119. INCOME OF INSURED M U TUA L SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1970-1974-C O N TIN U E D

(Amounts in thousands of dollars)

Incom e item 1970 1971 1972 1973 1974

Memoranda

Change in surplus accounts, net .............................................................

D iscount on securities, to ta l2 ............................................................................................................................................

1 8 8 ,4 8 4 1 486,234

16,513

534,229

19,630

561,695

27,805

369,166

32,406

Average assets and liabilities3

A ssets-total4 .................................................................................................................................

Cash and due fro m banks ............................................................................................................................................

U.S. G overnm ent and agency securities4 ................................................................................................................

Other securities4 .............................................................................................................................................................

Real estate mortgage loans4 .........................................................................................................................................

O ther loans and discounts4 .........................................................................................................................................

O ther real estate .............................................................................................................................................................

A ll o ther assets ................................................................................................................................................................

Liabilities and surplus accounts-total4 .............................................................................................

Total d e p o s its ...................................................................................................................................................................

Savings and time deposits.......................................................................................................................................

Demand deposits....................................................................

O ther lia b ilitie s ........................................................................

Total surplus accounts4 ..................................................................

65.986.370

778,430

3,893,429

8,471,553

49,745,250

1,904,974

57,981

1,134,753

65.986.370

59,862,839

59,296,823

566,016

1,162,859

4,960,672

73.661.663

1,156,181

4,437,666

11,932,355

52,364,759

2,309,498

75,520

1,385,684

73.661.663

67,443,302

66,784,186

659,116

982,655

5,235,706

82.995.606

1,329,972

5,740,097

15,033,388

56,553,602

2,566,460

116,406

1,655,681

82.995.606

76,226,170

75,472,194

753,976

1,074,401

5,695,035

90.850.840

1,676,216

6,299,082

16,238,983

61,600,178

2,967,740

170,868

1,897,773

90.850.840

83,212,442

82,350,237

862,205

1,381,121

6,257,277

94.426.708

1,825,066

5,950,081

16,410,896

64,695,689

3,250,960

207,125

2,086,891

94.426.708

85,994,384

85,097,902

896,482

1,763,885

6,668,439

N u m b e r of e m p lo y e e s (end of p erio d ) ......................................................................................................... 27,505 30,134 32,866 35,668 37,494

N u m b e r of b a n k s (end of p e r i o d ) .................................................................................................................. 329 327 326 322 320

1 F ig u re s have been revised to p ro vid e c o m p a ra b ility w ith 1 9 7 1 - 1 9 7 4 d a ta - se e page 2 2 8 f ° r in fo rm a tio n on changes in re ports in 19 7 1 .

2 D ata are n o t available p rio r to 1 9 7 1 . See page 2 28.

3 F o r 1 9 7 0 , averages o f a m o u n ts fo r fo u r co n se c u tive official call dates b egin n in g w ith the end of the previous ye ar and end ing w ith the fall call of the curren t year; fo r 1 9 7 1 - 1 9 7 4 , averages of a m o u n ts 

reported at b egin n in g, m iddle, and end o f year.

4 A ve ra ge s fo r 1 9 7 0 have been revised to a g ro ss basis; see n o te s to table 110.

240 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 120. RATIOS OF INCOME OF INSURED M UTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1970-1974

Incom e item 1970 1971 1972 1973 1974

A m ou n ts per $100 o f operating incom e

O perating in c o m e - t o t a l........................................................................................................................................................ $100.00 $100.00 $100.00 $100.00 $100.00

Interest and fees on real estate mortgage lo a n s - n e t........................................................................................... 76.49 72.33 69.70 68.78 69.45

Interest and fees on o th e r lo a n s .................................................................................................................. 3.98 3.61 3.36 4.68 5.21

Interest on U.S. G overnm ent and agency securities2 ..................................................................................................... 5.93 6 65 6.83 6.23

Interest on corporate b o n d s ...................................................................................................... 17.91 12.06 13.72 12.04 11.47

Interest on State, c o u n ty , and m unicipal o b lig a tio n s2 ......................................................................................... .28 .58 .87 .73

Interest on o the r bonds, notes, and debentures2 ................................................................................................ 1.67 1.74 1.93 1.94

Dividends on corporate s to c k 2 ................................................................................................. 2.33 2 39 2 45 2.63

Incom e fro m service o p e ra tio n s ................................................................................................................................. .91 .61 .57 .59 !43

O ther operating in c o m e .............................................................................................................. . . .71 1.18 1.29 1.83 1.91

O perating e x p e n s e -to ta l ................................................................................................................. 13.441 12.84 12.69 13.38 14.48

Salaries ............................................................................................................................................ 5.61 5.37 5.11 5.06 5.31

Pensions and o th e r em ployee b e n e fits ................................................................................................... 1.22 1.24 1.21 1.20 1.29

Interest on borrow ed m o n e y ...................................................................................................................................... .52 .17 .13 .48 1.02

O ccupancy expense o f bank premises (in cluding taxes, depreciation, maintenance, r e n ta ls ) - n e t................. 1.57 1.57 1.56 1.58 1.76

F urn itu re and e quipm ent (in clu d in g recurring d e p re c ia tio n )................................................................................... .58 .63 .61 .61 .68

A ctua l net loan losses (charge-offs less re c o verie s)................................................................................................ .04 .07 .08 .15 .15

O ther operating expenses.............................................................................................................................................. 3.90 3.79 3.99 4.30 4.27

Net operating incom e before interest and dividends on d e p o s its ...................................................................................... 86.561 87.16 87.31 86.62 85.52

Interest and dividends on d e p o s its -to ta l................................................................................................................................. 77.09 75.49 74.46 73.88 75.83

Savings deposits2 .................................................................................................................................................................. 67.54 64.07 58.82 55.63

O ther tim e deposits2 ................................................................................................................................................... 7.95 10.39 15.06 20.20

N et operating incom e a fte r in te re st and dividends on d e p o s its ......................................................................................... 9.471 11.67 12.85 12.74 9.69

Net realized gains (o r losses) o n - to ta l ...................................................................................................................................... — 3.14 1 -1 .2 9 -.2 8 -1 .5 3 -2.3 0

S e c u ritie s ........................................................................................................................................................................................ — 2.37 - .9 8 .07 -1 .0 9 -1 .7 2

Real estate mortgage lo a n s ..................................................................................................................................................... - .6 8 - .2 7 - .4 9 - . 3 4 - . 6 0

Real e s ta te ...................................................................................................................................................................................... - .0 2 - . 0 4 -.0 1 -.0 1 -.0 1

O ther tra n s a c tio n s ....................................................................................................................................................................... - .0 7 (5) .15 - .0 9 .01

Less m in o rity interest in consolidated s u b s id ia rie s ............................................................................................................... .00 (5) .00 .00

N et incom e before ta x e s .................................................................................................................................................................. 6.331 10.38 12.57 11.21 7.39

Franchise and incom e ta x e s -to ta l .............................................................................................................................................. 2.02 2.79 3.52 3.33 2.49

Federal incom e tax .................................................................................................................................................................... .65 1.41 2.05 1.89 1.25

State and local franchise and incom e t a x e s ....................................................................................................................... 1.37 1.38 1.47 1.44 1.24

N et in c o m e ........................................................................................................................................................................................... 4.311 7.59 9.05 7.88 4.90

INCOME OF INSURED BANKS 241

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 120. RATIOS OF INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

1970— 1974— CONTINUED

Incom e item 1970 1971 1972 1973 1974

A m o u nts per $ 100 o f to ta l assets3

O perating in c o m e - t o t a l.................................................................................................................................................................. 5.87 6.15 6.38 6.68 6.87

O perating e x p e n s e -to ta l.................................................................................................................................................................. .79 .79 .81 .90 .99

N et operating incom e before interest and dividends on d e p o s its ....................................................................................... 5.08 5.36 5.57 5.78 5.88

Interest and dividends on d e p o s its -to ta l .................................................................................................................................. 4.52 4.64 4.75 4.93 5.21

N et operating incom e a fte r interest and dividends on d e p o s its ......................................................................................... .56 .72 .82 .85 .67

Net realized gains (or losses)— t o t a l .............................................................................................................................................. - .1 9 -.0 8 - .0 2 - .1 0 - .1 6

Net incom e before ta x e s .................................................................................................................................................................. .37 .64 .80 .75 .51

Franchise and incom e ta x e s -to ta l .............................................................................................................................................. .12 .17 .22 .22 .17

N et in c o m e ............................................................................................................................................................................................ .25 .47 .58 .53 .34

Special ra tios3

Interest on U.S. G overnm ent and agency securities per $100 of U.S. G overnm ent and agency securities4.......... 5.61 6.05 6.14 6.58 6.79

Interest and dividends on o th e r securities per $100 o f o ther securities4 . . . . . .......................................... 6.20 6.49 6.46 6.62

Interest and fees on real estate m ortgage loans per $1 0 0 o f real estate loans4 .............................................................. 5.96 6.26 6.53 6.77 6.96

Interest and fees on o th e r loans per $100 o f o th e r loans4 .................................................................................................... 8.10 7.09 6.94 9.55 10.39

Interest and dividends on deposits per $100 o f savings and tim e d e p o s its ..................................................................... 5.04 5.12 5.22 5.44 5.78

N et incom e per $100 o f to ta l surplus accounts4 ..................................................................................................................... 3.37 6.56 8.41 7.64 4.76

N um ber o f banks (end o f p e r io d ) ................................................................................................................................................. 329 327 326 322 320

1 , 2. 3 , 4 g ee notes t0 table 119. 

5 Less than 0.005.

242 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES; 

DEPOSIT INSURANCE DISBURSEMENTS

Table 121. 

Table 122.

Table 123.

Table 124.

Number and deposits of banks closed because of financial difficulties, 1934-1974

Insured banks requiring disbursements by the Federal Deposit Insurance Corporation during

1974

Depositors, deposits, and disbursements in failed banks requiring disbursements by the 

Federal Deposit Insurance Corporation, 1934-1974

Banks grouped by class o f 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, 1934-1974

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
ro

£

Deposit insurance disbursements

D isbursem ents by the Federal D eposit Insurance C orporation to protect 

depositors are made when the insured deposits o f banks in financial d ifficulties are paid o ff, or when the deposits o f a fa ilin g bank are assumed by 

another insured bank w ith the finan cia l aid o f the C orp ora tio n. In deposit 

p a y o ff cases, the disbursem ent is the am o u n t paid by the C orporation on 

insured deposits. In deposit assum ption cases, the principal disbursem ent is 

the am o u n t loaned to fa ilin g banks, or the price paid fo r assets purchased 

fro m the m ; a d d itio n a l disbursem ents are made in those cases as advances fo r 

p ro te ctio n o f assets in process o f liq u id a tio n and fo r liq u id a tio n expenses.

U nder its section 18(c) a u th o rity , the C o rp o ra tio n has made disbursements to three operating banks. The am ounts o f these disbursements are 

included in table 2 (page 7), b u t are n o t included in tables 123 and 124.

Noninsured bank failures

S tatistics in this re p o rt on failures o f noninsured banks are com piled 

fro m in fo rm a tio n obtained fro m State banking departm ents, field supervisory o fficia ls, and o th e r sources. The C o rp ora tio n received no reports o f 

failures o f noninsured banks in 1974.

F o r detailed data regarding noninsured banks w hich suspended in the 

years 1934-1962, see the Annual Report fo r 1963, pp. 27-41. For 

1963-1974, see table 121 o f this report, and previous reports fo r respective 

years.

Sources of data

Insured banks: books o f bank at date o f closing; and books o f FD IC , 

Decem ber 31, 1974.

FEDERAL DEPOSIT INSURANCE C O R P O R A T IO N

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 121. NUMBER AND DEPOSITS OF BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES, 1934-1974

Year

Num ber Deposits (in thousands of dollars)

Total

N o n ­

insured1

Insured

Total

N on ­

insured1

Insured

Total

W ithout 

disbursements 

by F D IC 2

With 

disbursem ents 

by F D IC 3

Total

W ithout 

disbursem ents 

by F D IC 2

With 

disbursements 

by F D IC 3

Total .............. 6 48 134 514 8 506 3,816,899 141,700 3,675,199 41,147 3,634,052

1934 ............... 61 52 9 9 37,332 35,364 1,968 1,968

1935 ................ 32 6 26 25 13,988 583 13,405 85 13,320

1936 ............... 72 3 69 69 28,100 592 27,508 27,508

1937 ............... 84 7 77 75 34,205 528 33,677 328 33,349

1938 ................ 81 7 74 74 60,722 1.038 59,684 59,684

1939 ............... 72 12 60 60 160,211 2,439 157,772 157,772

1940 ............... 4 8 5 43 43 142,788 358 142,430 142,430

1941 ............... 17 2 15 15 29,796 79 29,717 29,717

1942 ............... 23 3 20 20 19,540 355 19,185 19,185

1943 ................ 5 5 5 12,525 12,525 12,525

1944 ............... 2 2 2 1,915 1,915 1,915

1945 ............... 1 1 1 5,695 5 695 5 695

1946 ............... 2 " V 1 1 494 147 347 '3 4 7

1947 ................ 6 1 5 5 7,207 167 7,040 7,040

1948 ............... 3 3 3 10 674 10 674 10 674

1949 ............... 9 4 5 4 9^217 2,552 6 '6 6 5 1,190 M 7 5

1950 ............... 5 1 4 4 5,555 42 5,513 5,513

1951 ............... 5 3 2 2 6,464 3,056 3,408 3,408

1952 ............... 4 1 3 3 3,313 143 3,170 3,170

1953 ............... 5 1 4 2 45,101 390 44,711 26,449 18,262

1954 ............... 4 2 2 2 2,948 1,950 998 998

1955 ............... 5 5 5 11 953 11 953 11 953

1956 ............... 3 V 2 2 11*690 360 11 ^330 1 U 3 0

1957 ............... 3 1 2 1 12,502 1,255 11,247 10,084 1,163

1958 ................ 9 5 4 4 10,413 2,173 8,240 8,240

1959 ............... 3 3 3 2,593 2 593 2 593

1960 ............... 2 " V 1 1 7,965 1,035 6,930 6*930

1961 ............... 9 4 5 5 10,611 1,675 8,936 8,936

1962 ................ 3 2 1 4,231 1,220 3,011 3,011

1963 ................ 2 2 "l 23,444 23,444 23,444

1964 ............... 8 1 7 1 23,867 429 23,438 23,438

1965 ................ 9 4 5 5 45,256 1,395 43,861 43,861

1966 ................ 8 1 7 7 106,171 2,648 103,523 103 523

1967 ................ 4 4 4 10,878 10*878 10*878

1968 ............... 3 3 3 22,524 22^524 22^524

1969 ............... 9 9 9 40,133 40,133 40,133

1970 ............... 84 " i « 7 7 55,795 4 2 3 4 55,372 55*372

1971 ................ 6 6 6 132,152 132,152 1 3 2 1 5 2

1972 ................ 3 2 1 1 99,786 79,304 20,482 20^482

1973 ............... 6 6 6 971 312 971 312 971 312

1974 ................ 4 4 4 1,5751832 1,575*832 1,575*832

For inform ation regarding each of these banks, see table 22 in the 1963 Annual Report (1963 and prior years), and explanatory notes to tables regarding banks closed because of financial difficulties in subsequent annual reports. One noninsured 

bank placed in receivership in 1934, w ith no deposits at time of closing, is omitted (see table 22, note 9). Deposits are unavailable for 7 banks.

2 For inform ation regarding these cases, see table 23 of the Annual Report for 1963.

3 For inform ation regarding each bank, see the Annual Report for 1958, pp. 4 8 -8 3 and pp. 9 8 -1 2 7 , and tables regarding deposit insurance disbursem ents in subsequent annual reports. Deposits are adjusted as of December 31, 1974.

4 Revised.

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 245

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 122. INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1974

Case

num ber Name and lo ca tio n

Class o f 

bank

N um ber of 

depositors or 

accounts1

Date o f 

deposit assum ption

FD IC

disbursem ents2 Assuming bank

Deposit

assum ption

206 A m erican Bank & T ru s t 

Orangeburg, South C arolina

NM 66,232 S eptem ber 20, 1974 $ 61,288,736 Southern Bank and T rust Com pany 

G reenville, S outh Carolina

207 T ri-C ity Bank 

W arren, M ichigan

SM 6,517 S eptem ber 27, 1974 10,976,277 M ichigan N ational Bank o f Macom b 

W arren, Michigan

208 F ra n klin N ational Bank 

N ew Y o rk , N .Y .

N 630,000 O ctober 8 ,1 9 7 4 100,000,000 European-Am erican Bank 

& T rust C om pany 

New Y o rk , N .Y .

209 C rom w ell State Savings Bank 

C rom w ell, Iow a

NM 1,534 O ctober 9, 1974 1,946,301 Iowa State Savings Bank 

Creston, Iowa

Assets1 L ia b ilities and capital accounts1

Case

num ber Cash and 

due fro m 

banks

U.S. G overnm ent 

o bligations

O ther

securities

Loans,

discounts,

and

overdrafts

Banking 

house, 

fu rn itu re and 

fixtu re s

Other

real

estate

O ther

assets

T otal Deposits O ther

lia bilitie s

Capital

stock

O ther

capital

accounts

D eposit

assum ption

206 $ 10,585,370 $ 9 ,1 0 4 ,9 5 2 $ 18,824,058 $ 97,594,112 $ 3,212,078 $ 931,979 $ 6,884,337 $ 147,136,888 $ 112,702,997 $ 24,421,830 $ 2,723,330 $ 7,288,731

207 1,100,802 1,881,905 39,450 11,790,553 170,464 1,150,766 160,964 16,294,904 14,876,284 6,909 810,000 601,711

208 3 4 5 ,3 4 0 ,3 2 6 31 2 ,3 4 8 ,0 8 2 4 8 7 ,88 9 ,3 86 2 ,3 87,125,788 37,968,720 2,359,488 82,630,682 3 ,655,662,473 1,444,981,606 2,034,895,511 57,035,220 118,750,136

209 428,251 192,618 539,835 2,322,510 18,708 - 0 - - 0 - 3,501,922 3,270,537 33,207 30,000 168,178

1 Figures as determ ined by FD IC agents a fte r adju stm e nt o f books o f the bank im m ediately fo llo w in g its closing.

2 Includes disbursem ents made to Decem ber 31, 1974, plus a d d itio na l disbursem ents required in these cases.

246 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 123. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN FAILED BANKS REQUIRING DISBURSEMENTS BY THE 

FEDERAL DEPOSIT INSURANCE CORPORATION, 1934-1974 

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)

Disbursements by F D IC 1 

(in thousands o f dollars)

T otal P a yo ff

cases

Assum ptio n

cases

T otal P ayoff

cases

Assum ptio n

cases

T otal Payoff

cases

Assum ptio n

cases

Principal disbursements

Advances and 

expenses2

Total P ayoff

cases3

Assum ptio n

cases4

P ayoff

cases5

Assumptio n

cases6

All b a n k s ...................................... 506 297 209 2,853,845 592,836 2,261,009 3,634,052 409,946 3,224,106 1,209,262 287,737 921,525 6,187 65,875

Class of bank

N a tio n a l.............................................. 95 34 61 1,329,667 98,545 1,231,122 2,615,373 103,738 2,511,635 595,804 57,849 537,955 2,224 10,030

State m em ber F.R .S......................... 28 10 18 382,776 88,894 293,882 212,550 34,388 178,162 118,870 26,506 92,364 300 19,921

N onm em ber F.R .S............................ 383 253 130 1,141,402 405,397 736,005 806,129 271,820 534,309 494,588 203,382 291,206 3,663 35,924

Year7

1934 ..................................................... 9 9 15,767 15,767 1 968 1 968 941 941 43

1935 ..................................................... 25 24 " V 44,655 32,331 12,324 13*320 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 14,460 7,735 6,725 67 934

1937 ..................................................... 75 50 25 130,387 74,148 56,239 33,349 14,960 18,389 19,481 12,365 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 24 256,361 20,667 235,694 142,430 5,657 136,773 74,134 4,895 69,239 89 17,237

1 9 4 1 ..................................................... 15 8 7 73,005 38,594 34,411 29,717 14,730 14,987 23,880 12,278 11,602 50 1,479

1942 ..................................................... 20 6 14 60,688 5,717 54,971 19,185 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 1,724 381

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

1 9 5 1 ..................................................... 2 2 5,276 5,276 3,408 3*408 1^885 1*885 127

1952 ..................................................... 3 3 6,752 6,752 3 J 70 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 ” 4 1 17,790 8,080 9,710 11,953 6,503 5,450 6,784 4,438 2,346 106 665

1956 ..................................................... 2 1 1 15,197 5,465 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 9,587 4,380 5,207 8,240 4*156 4,084 3J326 2 > 9 6 230 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 J 6 5 4 J 6 5 82

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 247

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 123. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN FAILED BANKS REQUIRING DISBURSEMENTS BY THE 

FEDERAL DEPOSIT INSURANCE CORPORATION, 1934-1974-CONTINUED 

BANKS GROUPED BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF OR DEPOSIT ASSUMPTION, AMOUNT OF DEPOSITS, AND STATE

Classification

N um ber o f banks N um ber o f depositors1

Deposits1 

(in thousands o f dollars)

Disbursements by F D IC 1 

(in thousands o f dollars)

T otal P a yo ff

cases

Assum ptio n

cases

T otal P ayoff

cases

Assumptio n

cases

T otal Payoff

cases

Assum ptio n

cases

P rincipal disbursements

Advances and 

expenses2

T otal P ayoff

cases3

Assum ptio n

cases4

P a yo ff

cases5

Assum ptio n

cases6

1961 . . . .... 5 5 8,301 8,301 8,936 8,936 6,201 6,201 154

1962 . . . ..........

1963 2 2 36 433 36 433 23,444 23,444 19,230 19,230 346

1964 .................................................. 7 7 19,934 19,934 2 3,438 23,438 13,744 13,744 595

1965 ..................................................... 5 3 2 15,817 14,363 1,454 43,861 42,889 972 11,431 10,958 473 630 123

1966 ..................................................... 7 1 6 95,424 1,012 94,412 103,523 774 102,749 8,732 735 7,997 35 1,258

1967 4 4 4,729 4,729 10,878 10,878 8,126 8,126 241

1968 ..................................................... 3 12 850 12,850 22,524 22,524 5,572 5,572 1,094

1969 ..................................................... " 4 5 27,374 6,544 20,830 40,133 9,011 31,122 37,443 7,612 29,831 292 4,277

1970 ..................................................... 7 4 3 31,437 20,407 11,030 55,372 34,040 21,332 4 9,174 29,408 19,766 666 1,455

1 9 7 1 ..................................................... 5 1 71,950 31,850 40,100 132,152 74,605 57,547 160,913 53,821 107,092 734 7,240

1972 ................................................ 1 23,655 23,655 20,482 20,482 16,275 16,275 364

1973 ..................................................... 3 " 3 ' 349,696 8,379 341,317 971,312 25,811 945,501 396,317 16,924 3 79,393 931 544

1974 ...................................... 4 4 704,283 704,283 1,575,832 1,575,832 173,201 173,201 2,345

Banks w ith deposits o f

Less than $ 1 0 0 ,0 0 0 ......................... 107 83 24 38,347 29,695 8,652 6,418 4,947 1,471 5,000 4,309 691 88 154

$100,000 to $25 0,0 0 0 .................. 109 86 23 83,370 65,512 17,858 17,759 13,920 3,839 12,906 11,554 1,352 209 173

$250,000 to $ 500,000 .................. 62 37 25 92,179 57,287 34,892 22,315 12,921 9,394 15,615 10,549 5,066 164 611

$500,000 to $1,000,000 ............... 71 35 36 160,000 73,908 86,092 53,869 26,265 27,604 35,521 20,426 15,095 408 2,339

$ 1 ,000,000 to $ 2 ,000,000 .......... 57 21 36 209,818 70,334 139,484 76,462 27,888 48,574 44,267 22,068 22,199 691 3,709

$ 2 ,000,000 to $5 ,0 0 0 ,0 0 0 .......... 50 21 29 280,306 85,353 194,953 163,086 67,777 95,309 94,875 49,653 45,222 1,053 6,891

$5,000 ,0 0 0 to $1 0 ,0 00 ,0 0 0 . . . . 27 6 21 266,306 43,947 222,359 185,619 48,443 137,176 95,236 33,180 62,056 745 9,203

$ 10,0 0 0 ,0 0 0 to $ 2 5 ,0 0 0 ,0 0 0 . . . 12 6 6 256,931 126,916 130,015 201,880 100,707 101,173 120,306 79,246 41,060 1,223 7,210

$ 25,000 ,0 0 0 to $ 5 0,0 0 0 ,0 0 0 . . . 1 4 284,809 12,481 272,328 199,594 40,176 159,418 95,414 9,700 85,714 571 26,075

$50,00 0 ,00 0 to $ 1001000,000 . . . 1 2 150,547 27,403 123,144 217,409 66,902 150,507 157,801 47,052 110,749 469 7,578

$100,000,000 to $500,000,000 1 1 66,232 66,232 112,703 112,703 60.589 60,589 566 1,041

$ 5 oo!ooo!ooo to $1,000,000,000 . 1 335 000 335 000 931,955 931,955 371.730 371,730

$1 000 000 000 or m ore 1 6 30,000 630,000 1,444,982 1,444,982 100,00U 100,000 889

State

A la b a m a ............................................. 4 2 2 9,170 2,059 7,111 6,170 3,985 2,185 3,567 2,572 995 94 91

A rk a n s a s ............................................. 7 6 1 5,446 4,541 905 2,538 1,942 596 1,720 1,576 144 43 48

C a lifo r n ia ........................................... 5 3 2 356,059 17,890 338,169 9 79,253 46,220 933,033 397,598 12,946 384,652 1,232 1,490

C o lo ra d o ............................................. 6 3 3 11,492 2,312 9,180 18,593 3,797 14,796 8,417 2,190 6,227 187 1,623

C onnecticut ...................................... 2 2 5,379 5,379 1,526 1,526 1,242 1,242 8

248 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
F lo rida ................................................ 5 2 3 14,082 1,725 12,357 17,665 2,668 14,997 6,171 2,139 4,032 65 697

G e o rg ia ................................................ 10 8 2 9,410 8,797 613 1,959 1,870 89 1,620 1,551 69 33 33

Idaho .................................................. 2 2 2,451 2,451 1,894 1,894 1,493 1,493 29

Illin o is ................................................ 22 10 12 82,298 44,379 37,919 54,656 28,972 25,684 31,906 23^924 7,982 502 791

In d ia n a ................................................ 20 15 5 30,006 12,549 17,457 13,595 3,933 9,662 6,197 3,096 3,101 39 384

I o w a ..................................................... 10 5 5 23,824 5,736 18,088 24,364 8,535 15,829 14,431 6,471 7,960 139 341

Kansas.................................................. 10 6 4 6,715 3,824 2,891 5,052 4,358 694 4,093 3,601 492 59 72

Kentucky ........................................... 25 19 6 39,925 18,964 20,961 15,522 5,213 10,309 11,943 4,505 7,438 119 538

Louisiana ........................................... 4 4 8 998 8,998 9,746 9,746 5,069 5,069 141

M a in e .................................................. 1 1 9,710 9 710 5,450 5,450 2^346 2,346 665

M aryland ........................................... 5 2 3 22,567 6,643 15,924 4,566 828 3,738 3,109 735 2,374 9 371

M assachusetts................................... 3 1 2 32,701 23,655 9,046 23,501 20,482 3,019 17,839 16,275 1,564 363 1,030

M ic h ig a n ............................................. 14 5 9 172,607 10,452 162,155 194,950 14,028 180,922 141,285 12,293 128,992 203 8,987

M in n e s o ta ........................................... 5 5 2,650 2 650 818 818 640 640 17

M ississippi........................................... 3 3 1 651 1 651 334 334 257 257 5

Missouri ............................................. 51 37 14 49,057 31,480 17,577 21,716 10,731 10,985 16,328 9,062 7,266 140 1,025

M o n ta n a ............................................. 5 3 2 1,500 849 651 1,095 215 880 639 186 453 6 21

N ebraska............................................. 8 8 7,773 7,773 11,644 11,644 8,116 8,116 146

New H am pshire................................. 1

■ ■ y

1,780 1,780 296 296 117 117 8

New J e rs e y ........................................ 40 13 27 532,458 113,692 418,766 210,624 49,122 161,502 95,706 40,049 55,657 500 20,154

New Y o r k ........................................... 27 3 24 899,621 28,440 871,181 1,590,421 13,286 1,577,135 167,997 10,836 157,161 32 11,736

N orth 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 orth 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 2,348 178 547

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 en n sylva n ia...................................... 30 8 22 168,834 43,828 125,006 84,595 14,340 70,255 60,149 10,133 50,016 75 9,975

South C a ro lin a ................................. 3 1 2 68,080 403 67,677 113,553 136 113,417 60,863 136 60,727 1,051

South D akota ................................... 23 22 1 12,515 11,412 1,103 2,988 2,862 126 2,411 2,388 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 90,716 72,500 18,216 134,534 108,102 26,432 90,500 76,327 14,173 1,317 1,874

U ta h ..................................................... 1 1 3,254 3 254 5 992 5 992 3 349 3 349 284

V e rm o n t............................................. 3 " 2 1 11,057 8,687 2,310 3,72b 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 4,396 301 505

W a sh in g to n ........................................ 1 1 4,179 4,179 1,538 1,538 935 935 512

West V irginia ................................... 3 3 8,346 8,346 2,006 2,006 1 458 1 458 11

W is c o n s in ........................................... 31 20 V l‘ 26,898 18,739 8,159 9,511 5,966 3,545 7 J 8 8 5*096 2,092 54 439

W yom ing ........................................... 1 1 3,212 3,212 2,033 2,033 202 202 19

1 A djusted to December 31, 1974. In assum ption cases, num ber o f depositors refers to num ber of deposit accounts.

2 Excludes $ 638 thousand o f nonrecoverable insurance expenses in cases th a t were resolved w ith o u t paym ent o f claim s or a disbursem ent to fa c ilita te assum ption o f deposits by another insured bank and other expenses o f field 

liq u id a tio n employees 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 collections turned over to banks as a d d itio n a l purchase price at te rm in a tio n o f liq u id a tio n .

5These disbursem ents are n o t recoverable by the C o rp o ra tio n ; they consist alm ost w h o lly o f field p a yo ff expenses.

6 1ncludes advances to p ro te c t assets and liq u id a tio n expenses o f $62,050 thousand, all o f w hich have been fu lly recovered by the C o rporation, and $3,636 thousand o f nonrecoverable expenses.

7 No cases 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 disbursements made in subsequent years.

N O T E : Due to rounding differences, com ponents m ay n o t add to totals.

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 249

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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 4 

(Am ounts in thousands of dollars)

Liquidation 

status and year 

of deposit payoff 

or deposit 

assumption

Deposit payoff cases Deposit assumption cases

Number

of

banks

Principal

disbursements

Recoveries 

to Dec. 

31, 1974

Estimated

additional

recoveries

Number

of

banks

Principal

disbursements2

Recoveries 

to Dec. 

3 1 ,1 9 7 4

Estimated

additional

recoveries

Number

of

banks

Principal

disbursements3

Recoveries 

to Dec. 

31, 1974

Estimated

additional

recoveries

Total ..........

Status

Active.........

Term inated..

Year4

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 

1963 

1964 

1965 

1966 

1967 

1968 

1969 

1970 

1971 

1972 

1973 

1974 

51

455

9

25

69

75

74

60

43

15

20

5

2

1

1

1,209,262

886,245

323,017

941

8,891

14,460

19,481

30,479

67,770

74,134

23,880

10,825

7,172

1,503

1,768

265

1,724

2,990

2,552

3,986

1,885

1,369

5,017

913

6,784

3,458

1,031

3,026

1,835

4,765

6,201

19,230

13,744

11,431

8,732

8,126

5,572

37,443

49,174

160,913

16,275

396,317

173,201

596,302

301,719

294,583

734

6,206

12,127

15,808

28,055

60,618

70,338

23,290

10,136

7,048

1,462

1,768

265

1,665

2,349

2,183

2,601

1,885

577

5,017

654

6,554

3,245

1,031

2,998

1,738

4,765

4,699

18,792

11,786

5,996

8,138

6,779

5,503

36,455

41,182

122,435

8,241

37,664

13,514

403.624

403.624

108

322

103

15

834

6,835

30,002

4,034

206,503

154,062

180,902

28,434

207

2,682

2,333

3,672

2,425

7,152

3,796

591

688

123

40

54

641

369

1,385

258

230

213

1,502

330

1,636

4,725

508

1,244

55

155

1,155

8,475

4,000

152,150

5,625

25

272

9

24

42

50

50

32

19

165,352

122,385

941

6,026

7,735

12,365

9,092

26,196

4,895

12,278

1,612

5,500

404

4,438

2.795 

1,031

2.796 

1,835 

4,765 

6,201

19,230

13,744

10,958

735

8,126

7,612

29,408

53,821

16,275

16,924

110,806

105,760

734

4,274

6,397

9,718

7,908

20,399

4,313

12,065

1,320

5,376

363

4,208

2,582

1,031

2,768

1,738

4,765

4,699

18,792

11,786

5,670

735

6,779

22,316

29,526

8,241

11,133

32,051

108

322

528

6,237

15,820

4,034

4,191

39,120

22,495

16,625

207

1,752

1,338

2,647

1,184

5,797

582

213

292

123

40

230

213

" 28 

97

1^502

330

1,636

4,580

T .2 4 4

155 

855 

8,475 

4,000 

1,600

26

183

1

27 

25 

24

28 

24

7

14

1

720,893

200,632

2,865

6,725

7,116

21,387

41,574

69,239

11,602

9,213

1,672

1,099

1,768

265

1,724

2,990

2,552

3,986

1,885

1,369

5,017

913

2,346

663

' ' ' '230

473

7,997

5^572

29,831

19,766

107,092

379,393

173,201

190,913

188,823

1,932

5,730

6,090

20,147

40,219

66,025

11,225

8,816

1,672

1,099

1,768

265

1,665

2,349

2,183

2,601

1,885

577

5,017

654

2,346

663

‘ ' 230

326

7,403

5] 503 

29,526 

18,866 

92,909

' 26,'531' 

13,514

371.573

371.573

15

306

598

14,182

202,312

154,062

158,407

11,809

930

995

1,025

1,241

1,355

3,214

378

396

54

641

369

1,385

"7 9 2

258

145

508

55

300

150,550

5,625

11ncludes 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,

in c lu d e s estimated additional disbursements in active cases.

3 Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.

4 No case in 1962 required disbursements.

Note: Due to rounding differences, components may not add to totals.

250 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
M AXIM U M INTEREST RATES ON TIME AND SAVINGS DEPOSITS

Table 125. Maximum interest rates payable on time and savings deposits in federally insured nonmember 

mutual savings banks

Table 126. Maximum interest rates payable on time and savings deposits fo r commercial banks

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 125. MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS 

IN FEDERALLY INSURED NONMEMBER MUTUAL SAVINGS BANKS1 

(Percent per annum)

T ype o f deposit

E ffective date

Type o f deposit

E ffective date

O ct. 1, 

19662

Jan. 21, 

1970

June 24, 

1970

May 17, 

1973

July 1, 

1973

Nov. 1, 

1973

J a n .1, 

1974

Nov. 27, 

1974

Dec. 23, 

1974

Savings d e p o s its ............................................. 5 5 5 5 Savings deposits............................................... 51/4 51/4 51/4 51/4 5%

Tim e deposits (m u ltip le -

T im e deposits and sin g le -m a tu rity)3 :

M u ltip le m a tu rity : Less than $100,0 0 0 :

90 days to 1 y e a r .............................. 5% b% 51/4 90 days to 1 y e a r .............................. 5% 5% 5% 53/4 5%

1 to 2 y e a r s ........................................ 5 5% 5% 53/4 1 year to TA y e a r s ........................... 6'A 6 1A 61/2 6 Y2 BY?

2 years o r m o re ................................... 6 6 6 TA years or m o r e .............................. 6 % 6% 6% 6 % 6%

Single m a tu rity : Min. denom ination

Less than $100,000: of $1,000:

90 days to 1 y e a r ....................... 51/4 5J4 51/4 4 to 6 years4 ................................ * TA TA 7'A TA

1 to 2 y e a rs ................................... 5 5% 5 % 53/4 6 years or m o re ........................... 7%

2 years o r m o re ............................ 6 6 6 G overnm ent u n i t s ........................... TA 7 %

$1 0 0,0 0 0 o r m ore: $100,000 or m o r e ................................... * * *

*

30 to 59 d a y s .............................. 6 1/4 * *

60 to 89 d a y s .............................. 6 1/ 2 * * NOW accounts5 ............................................... 5 5 5

90 to 179 d a y s ............................ 5 6% S% *

180 days to 1 year....................... 7 7 *

1 year o r m o r e ............................ 7/4 TA *

*M a xim u m rate ceilings suspended.

1 Excludes federally insured nonm em ber m utual savings banks in Massachusetts; these rates are available fro m the FDIC. The FDIC regulated Massachusetts nonfederally insured m utual savings banks fro m January 21, 1970 to 

Ju ly 31, 1970. The Massachusetts Com m issioner o f Banks began regulating interest rates on deposits o f nonfederally insured m utual savings banks on July 31, 1970. The FDIC reassumed this regulatory pow er on Septem ber 

20, 1973. Rate ceilings fo r nonfederally and federally insured banks have been identical since then.

2 M utual savings banks in Alaska were granted a 5% percent rate ceiling fro m O ctober 1 ,1 9 6 6 , to June 3 0 ,1 9 6 7 . Also, a "g randfather clause" perm itted them to continue paying a higher rate on certificates issued before 

Septem ber 22, 1966. This was extended on June 30, 1967.

3The d istin ctio n between single- and m u ltip le -m a tu rity deposits was elim inated effective July 1,1 9 7 3 .

4 Between Ju ly 1 and O ctober 31, 1973, there was no ceiling fo r 4-year certificates w ith m inim um denom inations o f $1,000. The am ount o f such certificates th a t a bank could issue was lim ite d to 5 percent o f its to ta l tim e 

and savings deposits. Sales in excess o f th a t am ount were subject to a 6% percent ceiling th a t applied to tim e deposits m aturing in 2'A years or more. E ffective w ith the Novem ber 1 ,1 9 7 3 ceiling rate, there is no lim ita tio n on 

the am ount of these certificates th a t banks may issue.

N e g o tia b le O rder o f W ithdraw al (NOW) accounts were introduced in June 1972 in Massachusetts and in September 1972 in New Hampshire. Before Federal regulations were imposed on January 1, 1974, the interest rate 

ceilings on NOW accounts were the same as the rates on savings deposits in each State.

252 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 126. MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS FOR COMMERCIAL BANKS1

(Percent per annum)

E ffective date

T ype o f deposit Nov. 1, F e b .1, J a n .1, Jan. 1, Jan. 1, July 17, Nov. 24, Dec. 6,

1933 1935 1936 1957 1962 1963 1964 1965

Savings deposits:

12 m onths o r m o r e ..................................................................................... 3 2 /2 2V2 3 4 4 4 4

Less than 12 m o n th s ................................................................................... 3 V/2 V/2 3 314 3V2 4 4

O ther tim e deposits2 :

12 m onths o r m o r e ..................................................................................... 3 VA V/2 3 4 4 4y2 51/z

6 m onths to 12 m o n th s .............................................................................. 3 2/4 V/2 3 31/2 4 4 1/2 51/2

90 days to 6 m o n th s ................................................................................... 3 V/2 2 V/2 V/2 4 454 5/4

Less than 90 d a y s ........................................................................................ 3 V/2 1 1 1 1 4 51/2

(30 to 89 days)

T ype o f deposit

E ffective date

Type o f deposit

E ffective date

Ju ly 20, 

1966

Sept. 26, 

1966

A p r. 19, 

1968

Jan. 21, 

1970

July 1, 

1973

Nov. 1, 

1973

Nov. 27, 

1974

Dec. 23, 

1974

Savings d e p o s its ............................................. 4 4 4 4/4 Savings deposits ............................................. 5 5 5 5

O ther tim e deposits2 : O ther tim e deposits (m u ltip le -

M u ltip le m a tu rity 3 : and sin g le -m a turity):

30 to 89 d a y s ...................................... 4 4 4 434 Less than $ 100,000:

90 days to 1 y e a r.............................. 5 30 to 89 days . . 5 5 5 5

1 to 2 years ........................................ 5 5 5 5/4 90 days to 1 y e a r .............................. 51/2 51/2 514 514

2 years or m o r e ................................. 5% 1 to 214 y e a rs ...................................... 6 6 6 6

Single m a tu rity : 214 years or m o r e .............................. 614 614 614 614

Less than $100,000: M inim um denom ination o f

30 days to 1 y e a r ....................... 5 $ 1,0 0 0:

1 to 2 y e a rs ................................... 5 y2 5 5 514 4 to 6 y e a rs ................................... (6) 7% 7% VA

2 years or m o re ............................ 5% 6 years or m o re ............................ V/2

$ 100,000 o r m ore: Governm ent u n i t s ............................ V/2 VA

30 to 59 d a y s .............................. 51/2 (4 ) $100,000 or m o r e ...................................

* * * *

60 to 89 d a y s .............................. 5% (4 )

90 to 179 d a y s ............................ 5/4 534 6 (4 )

180 days to 1 year .................... c v (5 )

1 year or m ore ............................

0/4

(5 )

^M axim um rate ceilings suspended.

1 M axim um rates th a t may be paid by m em ber banks as established by the Board o f Governors under provisions o f Regulation Q. Under this regulation, the rate payable by a m em ber bank may not in any event exceed the 

m axim um rate payable by State banks or tru s t companies on like deposits under the laws o f the State in w hich the m em ber bank is located. E ffective February 1, 1936, m axim um rates th a t may be paid by insured nonm em ber com m ercial banks, as established by the FDIC, have been the same as those in effect fo r member banks. For rates on postal savings deposits, see Board's Annual Reports.

2 For exceptions w ith respect to certain foreign tim e deposits, see Federal Reserve Bulletin, O ctober 1962, p. 1279; August 1965, p. 1094; and February 1968, p. 167.

3 M ultiple~m aturity tim e deposits include deposits th a t are autom atically renewable at m a tu rity w ith o u t action by the depositor and deposits th a t are payable a fte r w ritte n notice o f w ithdraw al.

4 M axim um rates suspended on June 24, 1970.

5M axim um rates suspended on May 16, 1973.

6 Between Ju ly 1 and O ctober 31, 1973, there was no ceiling fo r 4-year certificates w ith m inim um denom inations o f $1,000. The am ount o f such certificates th a t a bank could issue was lim ite d to 5 percent o f its to ta l tim e 

and savings deposits. Sales in excess o f th a t am ount were subject to the 614 percent ceiling th a t applies to tim e deposits m aturing in 214 years or more. E ffective w ith the Novem ber 1, 1973 ceiling rate, there is no longer a 

lim ita tio n on the am ount o f these certificates th a t banks may issue.

SO URCE: Federal Reserve Bulletin, Decem ber 1966 and January 1975.

INTEREST RATES ON TIME AND SAVINGS DEPOSITS 253

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
INDEX

J

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
257

INDEX

Absorptions:

Of insured banks requiring disbursements by FDIC. See 

Banks in financial difficulties.

Of operating banks, 1974 ......................................................................... 14-16

Of operating banks approved by FDIC, 1974 ..................... 14, 15, 33-167

Of operating bank denied by FDIC, 1 9 7 4 ........................................ 168-172

Regulation o f ..............................................................................................12-13

Admission of banks to insurance. See also Applications from banks:

Applications for, 1974 ............................................................................. 10-11

Number of banks admitted, by class of bank, 1974 .............................. 186

American Bank & T r u s t............................................................................... 4,7-8, 246

Applications from banks ....................................................................10-13, 178-179

Areas outside continental United States, banks and branches located in:

Number, December 31, 1974 ................................................... 189, 197-198

Assessments for deposit insurance............................................................. 25-27, 28

Assets and liabilities of F D IC ............................................................................. 23-25

Assets, liabilities, and capital of banks. See also Deposits:

Commercial banks:

Changes during 1974 .............................................................................x i-xii

Foreign, of U.S. b a n k s .............................................................................206

Grouped by insurance status,

June 30, 1974, and December 31, 1974 ................................. 207-214

Sources o f data .........................................................................................229

Insured commercial banks:

Amounts, December call dates, 1964, 1970-1974 ................... 217-219

Amounts, June 30, 1974, and December 31, 1974

by class of bank ........................................................................... 207-214

Major categories, average, 1966-1974 ................................................... 231

Percentage distribution, by size of bank, 1974 .......................... 224-226

Percentages of items, by size of bank, 1974 ........................................222

Mutual savings banks:

Changes during 1974 ...........................................................................xii-xm

Grouped by insurance status, June 30, 1974, and December

31, 1974 ......................................................................................... 215-216

Sources of data ........................................................................................ 211

Insured mutual savings banks:

Am ount, December call dates, 1970-1974 ................................. 220-221

Major categories, average, 1970-1974................................................... 240

Percentages of items, by size of bank, 1974 ........................................223

Assets, purchase of, by FDIC from banks in financial d ifficulties...................3-4

Assumption of deposits of insured banks w ith financial aid of FDIC.

See Banks in financial difficulties.

Attorney General of the United States....................................................................13

A ttorney General of the United States, summary

reports on absorptions ..................................................................................41-168

A udit of F D IC ..............................................................................................................30

Bad-debt reserves. See Valuation reserves.

Bank Merger A ct of 1 9 6 0 .................................................................................... 12-13

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Bank ownership, changes, regulation o f ................................................................. 19

Bank performance, 1974 .................................................................................... x i - x i m

Bank Protection A ct of 1968 ............................................................................. 19-20

Bank supervision. See Supervision of banks; Examination of 

insured banks.

Banking offices, number of. See Number o f banks and branches.

Banks in financial difficulties:

Insured banks requiring disbursements by FDIC:

Assets and liabilities o f ..................................................................................246

Deposit size of ................................................................................................248

Deposits protected, 1934-1974 ............................................... 4,5,6, 247-249

Disbursements by FDIC, 1934-1974 ..................................... 5,6,7, 247-250

Failures in 1974 ............................................................................................. 5-8

Loans made and assets purchased by F D IC ................................................... 7

Location by State, 1934-1974 .......................................................... 248-249

Losses incurred by depositors...........................................................................6

Losses incurred by FDIC ........................................................................ 7, 250

Number of, 1934-1974 ..................................................................................245

Number of deposit accounts, 1934-1974 ........................................ 247-249

Recoveries by FDIC on assets acquired, 1934-1974 ....................... 5,7,250

Noninsured banks:

Number and deposits of commercial banks closed,

1934-1974 ........................................................................................... 244-245

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.

Bradford Trust C om pany.........................................................................................6-7

Branches:

Establishment approved by FDIC, 1974 ............................................... 11-12

Examination of, 1973 and 1974 .............................................................10, 11

Number of. See Number of banks and branches.

Call reports. See Assets, liabilities, and capital ot banks;

Reports from banks.

Capital of banks. See Assets, liabilities, and capital o f banks; Banks in 

financial difficulties; Income of insured commercial banks;

Examination of insured banks.

Cease-and-desist proceedings ......................................................................14-15,16

Charge-offs by banks. See Income of insured commercial banks;

Income of insured mutual savings banks; Valuation reserves.

Class o f bank, banking data presented by:

Absorptions ............................................................................................. 14, 186

Income of insured commercial banks, 1974 ................................... 233-234

Insured banks requiring disbursements by FDIC, 1934-1974 ..............247

Number of banks and banking offices, 1 9 7 4 .......................... 186, 190-198

Number o f banks and d e p o sits....................................................................199

Classification of b a n k s ............................................................................................. 185

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.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
INDEX 259

Comptroller of the C u rre n c y ............................................................... 6,13,16,22-23

Consolidations. See Absorptions.

Consumer Credit Protection A c t ...........................................................................176

Credit, bank. See Assets, liabilities, and capital o f banks.

Crime reports received by F D IC ............................................................................... 20

Demand deposits. See Assets, liabilities, and capital of banks; Deposits.

Department of Housing and Urban Developm ent...............................................178

Deposit insurance, applications for ................................................................. 10-11

Depository Institutions Amendments of 1974 ................................................... 175

Deposits insured by FDIC:

Estimated insured deposits, December 31, 1934-1974 ..................... 28-30

Increase in maximum per d e p o s ito r................ xm -xiv,28,30,175,180-181

Survey of, on June 30, 1974 ...........................................................................20

Deposits of: See also Assets, liabilities, and capital of banks:

Banks closed because of financial difficulties, 1934-1974 . ................... 245

Commercial banks:

By insurance status and type o f bank, and type o f account,

June 30, 1974 ..................................................................................209

By insurance status and type o f bank, and type o f account,

December 31, 1974 ........................................................................ 213

By State and deposit size of b a n k .......................................... 200-204

Insured commercial banks:

Average demand and time deposits, 1966-1974............................ 231

By class of bank, December 31, 1974 ............................................ 199

By deposit size of bank, December 3 1 ,1 9 7 4 .................................199

December call dates, 1964, 1970-1974 ..........................................218

Mutual savings banks, by insurance status, June 30, 1974, and

December 31, 1974 ....................................................................................216

Insured mutual savings banks:

Average demand and time deposits, 1970-1974............................ 240

December call dates, 1970-1974 ......................................................223

Deposits, number of insured commercial banks w ith given ratios of

demand to total deposits...................................................................................... 225

Directors of FDIC. See Federal Deposit Insurance Corporation.

Disbursements. See Banks in financial difficulties.

Dividends:

To depositors in insured mutual savings banks. See Income o f insured 

mutual savings banks.

To stockholders of insured commercial banks. See Income of insured 

commercial banks.

Earnings of banks. See Income o f insured commercial banks; Income of

insured mutual savings banks.

Employees:

FDIC ........................................................................................................... 22-23

Insured commercial banks, number and

compensation, 1966-1974 ............................................................... 230-231

Insured mutual savings banks, number and

compensation, 1970-1974 ............................................................... 239-240

Equal Credit O pportunity A c t ............................................................................... 176

European-American Bank & Trust C o m p a n y.................................................6, 246

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Examination of insured banks:

By FDIC, 1974 .........................................................................................9-10,11

Regions and regional directors ......................................................................vi

Expenses of banks. See Income of insured commercial banks;

Income of insured mutual savings banks.

Expenses of FDIC ................................................................................................25-29

Failures. See Banks in financial difficulties.

Fair Credit Billing A c t ............................................................................................. 176

Fair Credit Reporting A c t .........................................................................................18

Federal Deposit Insurance Corporation:

Actions on applications ...........................................................................10-13

Assessments on insured banks................................................... ............. 25-27

A u d it .................................................................................................................. 30

Banks examined by, and submitting reports t o ............................................ 8

Borrowing power ............................................................................................. 25

Capital s to c k .......................................................................................................28

Consumer protection ............................................................................... 18-19

Coverage of deposit insurance..........................xm-xiv, 28,30,175,180-181

Delegation o f authority ...................................................................... 178-179

Deposit insurance disbursements ...............................................3-4, 248-250

Deposit insurance fund (surplus) ...............................................24-25, 28-30

Directors (members of the Board) ................................................... v, 22-23

D ivisions..............................................................................................................iv

Employees ..................................................................................................22-23

Examination of banks..................................................................................8-11

Fellowships awarded.........................................................................................22

Financial statements, 1974 ...................................................................... 23-27

Income and expenses, 1933-1974 ................................................................. 28

Insured banks requiring disbursements by. See Banks in 

financial difficulties.

Liquidation activities .........................................................................................4

Loans to, and purchase o f assets from , insured banks............................ 3-4

Losses incurred, 1934-1974 ............................................................... 4-7, 250

Methods of protecting depositors...............................................................3-4

Officials ................................................................................................................v

O rganization...................................................................... ......................... . . . iv

Payments to insured depositors .................................................3-8, 246-250

Receiver, appointment a s ..................................................................................4

Recoveries ................................................................................................5,7,250

Regions................................................................................................................ vi

Regulation o f bank se cu ritie s................................................................. 18-19

Regulation of interest rates....................................................................18, 175

Reports from banks ..................................................................................20-21

Reports o f changes in bank o w n e rsh ip ........................................................19

Research.......................................................................................................20-22

Reserve fo r losses on assets acquired......................................................24-26

Rules and regulations...........................................................................178-182

Sources and application of funds ................................................................. 27

Supervisory activities ..................................................................................8-22

Surveys during 1974 .................................................................................. 20-21

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
INDEX 261

Training program s............................................................................................. 20

Working Papers completed in 1 9 7 4 ........................................................ 21-22

Federal Home Loan Bank Board ........................................................ 177-178, 181

Federal legislation, 1974 ........................................................................ \ . . 175-178

Federal Reserve authorities ........................................ 5,13,18-19,25,175-177,181

Federal Reserve member banks. See Class of bank, banking data presented by.

Flood Disaster Protection A c t ............................................................................... 178

Franklin National B a n k ........................................................................ 5-7,24-25,246

General Accounting O ffic e .........................................................................................30

Gold, statement of policy o n ........................................................................ 181-182

Housing and Community Development Act of 1974 ........................................178

Income of F D IC .................................................................................................... 25-29

Income of insured commercial banks:

Amounts of principal components:

Annually, 1966-1974 ...................................................................... 230-231

By class o f bank, 1974 .................................................................... 233-234

By size of bank, 1974 ...................................................................... 237-238

Classification of income data ............................................................. 227-229

Developments in 1974 .....................................................................................xn

Ratios of income items:

Annually, 1966-1974 ............................................................................... 232

By size of bank, 1974 ...................................................................... 237-238

Sources o f d a ta ................................................................................................229

Income of insured mutual savings banks:

Amounts of principal components,1970-1974 ...............................239-240

Developments in 1974 ............................................................................. xii-xm

Ratios of income and expense items, 1970-1974 ............................ 241-242

Sources o f d a ta ................................................................................................229

Insolvent banks. See Banks in financial difficulties.

Insurance status, banks classified by:

Assets and liabilities of, June 30, 1974, and December 31, 1974 207-214

Changes in number of, 1974 ............................................................... 186-187

Class o f bank and s ize .................................................................................... 199

Income o f insured commercial b a n k s ............................................... 233-234

Number of banking offices, by State, December 31, 1974 .......... 190-198

Insured banks. See Assets, liabilities, and capital of banks; Banks in 

financial difficulties; Deposits; Income of insured commercial banks; 

Income of insured mutual savings banks; Number of banks and branches. 

Insured commercial banks not members of the Federal Reserve System.

See Class of bank, banking data presented by.

Insured deposits. See Banks in financial difficulties; Deposit insurance 

coverage.

Insured State banks members of the Federal Reserve System. See Class

of bank, banking data presented by.

Interest rates:

Exemption from usury la w s ........................................................................ 177

Maximum rates on deposits ................................................. 18,181,251-253

On debt obligations, regulation of .............................................................177

Paid on d e p o sits.................................................................................... 232,242

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Surveys of:

Mortgage lending activity and ra te s .......................................................... 21

Rates paid by banks...................................................................................... 21

Investments. See Assets, liabilities, and capital of banks; Assets and 

liabilities o f FDIC; Banks in financial difficulties.

Legislation relating to deposit insurance and banking:

Federal, enacted in 1974 .................................................................... 175-178

Loans. See Assets, liabilities, and capital of banks; Banks in financial 

difficulties.

Losses:

Of banks. See Income of insured commercial banks; Income of 

insured mutual savings banks.

Of F D IC ............................................................................................. 5,7,26,250

On loans, reserves for. See Valuation reserves.

Provision for, in insured banks, 1966-1974 ..............229-230,232,239,241

Mergers. See Absorptions.

Methods of tabulating banking data. See Banking data, classification of.

Mortgage lending by insured commercial banks, survey o f ..........................20-21

Mutual savings banks. See Assets, liabilities, and capital of banks;

Deposits; Income of insured banks; Number of banks and branches.

National banks. See Class o f bank, banking data presented by.

National Commission on Electronic Fund Transfers.......................................... 176

National Housing A c t ................................................................................................177

New banks, 1974 ..................................................................................x i,186,188-189

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, 1974, and

December 31, 1974 .............................................................186,210,214

By insurance status, type of bank, number of branches, and

State, December 31, 1974 ........................................................ 190-198

By State and deposit size of b a n k ................................................. 200-204

By supervisory status and deposit size ................................................. 199

Changes during 1974 ................................................................. x i,186-189

Branches:

By insurance status and type of bank, December 31, 1974.............. 187

By insurance status, type of bank, and State, December 31,

197 4 ................................................................................................ 190-198

Changes during 1974........................................................................ 187-189

O f foreign banks.........................................................................................xm

Insured commercial banks:

December call dates, 1966-1974 .......................................................... 231

Distributed by capital ratios and distribution of assets and

deposits, December 31, 1974 ................................................... 224-226

Insured mutual savings banks:

December call dates, 1970-1974 .......................................................... 240

Noninsured banks by State, December 31, 1974............................ 190-198

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
INDEX 263

U nit banks, by insurance status and State, December 31, 1974 . .190-198 

Obligations of banks. See Assets, liabilities, and capital of banks.

Officers of insured banks. See Employees.

Officials o f 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.

Protection of depositors. See Banks in financial difficulties; Deposit 

insurance coverage.

Real Estate Settlement Procedures A ct of 1 9 7 4 ........................................ 177-178

Receivership, insured banks placed in. See Banks in financial difficulties. 

Recoveries:

By banks on assets charged off. See Income o f insured commercial 

banks; Income o f insured mutual savings banks.

By FDIC on disbursements. See Banks in financial difficulties.

Regions, F D IC ..............................................................................................................vi

Removal proceedings..................................................................................................17

Reports from b a n k s ............................................................................................. 20-21

Reserves:

Of FDIC, for losses on assets acquired ............................................ 5, 24-27

Of insured banks fo r 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 of insured banks. See Income of insured commercial banks; 

Income of insured mutual savings banks.

Savings and loan associations................................................... 18,175,177-178,181

Savings and time deposits. See also Deposits ........................................................ xii

Securities. See Assets, liabilities, and capital of banks; Assets and liabilities of 

FDIC; Banks in financial difficulties.

Securities and Exchange Commission.............................................................18,175

Securities, bank, regulation o f ...........................................................................18-19

Securities Exchange A ct of 1934 ...................................................................... 18-19

Security, b a n k .......................................................................................................19-20

Selective Withdrawal Program ..................................................................................10

Sherman A ntitrust A c t................................................................................................13

Size of bank, data for banks classified by amount of deposits:

Assets and liabilities, percentages of, insured banks, 1974 ......... 222-223

Banks requiring disbursements by FDIC, 1934-1974 ............................ 248

Income o f insured commercial banks, 1974 ................................... 235-236

Income ratios o f insured commercial banks, 1974 ........................237-238

Number and deposits of all banks............................................................... 199

Number o f employees o f insured commercial banks, 1966-1974 . . . .231 

Number o f insured commercial banks, grouped by ratios o f selected

items to assets and deposits, December 31, 1974 ....................... 224-226

Southern Bank and Trust C om pany................................................................. 8, 246

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Standby letters of credit .........................................................................................180

State banking a u th o ritie s .................................................................................... 4,8,10

State, banking data classified by:

Changes in commercial banks and branches, 1974 ....................... 188-189

Disbursements, deposits, and depositors in insured banks requiring

disbursements by FDIC, 1934-1974 ............................................ 247-249

Number and deposits of commercial

banks, by deposit size of b a n k ........................................................ 200-204

Number of banks and branches, by class of bank and type of office,

December 31, 1974 ........................................................................... 190-198

Percentage of banks insured, December 31, 1974 .......................... 190-198

State banks. See Class of bank, banking data presented by.

Stockholders of banks, net profits available for. See Income of insured 

commercial banks.

Supervision of banks by F D IC ....................................................................................8

Suspension proceedings......................................................................................17-18

Suspensions. See Banks in financial difficulties.

Taxes paid by insured banks. See Income o f insured commercial banks;

Income of insured mutual savings banks.

Terminations of insurance fo r unsafe and unsound practices.....................14-16

Travelers checks and money orders, abandoned........................................176-177

Trust assets of insured commercial banks, survey o f ............................................ 20

Truth-in-Lending A c t .........................................................................................18,176

U nit banks, by insurance status and State, December 31, 1974 ............ 190-198

United States National Bank ..................................................................................4-5

Valuation reserves. See also Assets, liabilities, and capital of banks:

Amounts held, June 30, 1974, and December 31, 1974 .............. 209-214

Amounts held, December call dates, 1964, 1970-1974 ..........................219

Violations of law or regulations, banks charged w i t h ................................... 14-18

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis