S '

ANNUAL REPORT OF THE 

FEDERAL DEPOSIT INSURANCE CORPORATION

1975

J

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Federal Reserve Bank of St. Louis
Ill

LETTER OF TRA N SM ITTA L

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., March 15, 1976

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

Insurance A ct, the Federal Deposit Insurance Corporation is pleased to submit 

its annual report fo r the calendar year 1975.

Very truly yours,

FRAN K W ILLE 

Chairman

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

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

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Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION 

BOARD OF DIRECTORS

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

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

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

OFFICIALS

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

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

Assistant to the Director ......................................... Joseph M. Ream

(Comptroller o f the Currency)

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

Director, Division o f Bank Supervision........................John J. Early

General Counsel (A ctin g )......................................... Reford J. Wedel

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

Chief, Division o f Liquidation ...................................George W. Hill

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

Director, Office of Management Systems.............Robert P. Rogers

Director, Office o f Corporate Planning...........Stanley C. Silverberg

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

Special Assistant to the Chairman and Director (Acting)

Office o f Bank Customer Affairs ....................Stephen C. Hansen

Special Assistant to the Chairman ................. Robert F. Miailovich

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

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

December 31, 1975

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

VI

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 Y ork

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

Frank T. Locki

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 

Memphis

Roy E. Jackson

165 Madison Avenue, Suite 1010 

Memphis, Tennessee 38103

St. Louis, Missouri 63101 

San Francisco

Charles E. Doster

44 Montgomery Street, Suite 3600 

San Francisco, California 94104

December 31, 1975

FEDERAL DEPOSIT INSURANCE CORPORATION 

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Federal Reserve Bank of St. Louis
CONTENTS

Banking offices— bank performance— 1975 ...................................xi

Deposit insurance participation and coverage...............................xiv

PART ONE 

OPERATIONS OF THE CORPORATION

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

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

Administration of the Corporation................................................ 24

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

PART TWO

MERGER DECISIONS OF THE CORPORATION

Bank absorptions approved by the Corporation.......................... 35

Bank absorptions denied by the C orporation.............................. 119

PART THREE 

LEGISLATION AND REGULATIONS

Federal legislation (summary)— 1975 ............................................ 129

Rules and regulations of the Corporation (summary)— 1975 . . . 131

PART FOUR

STATISTICS OF BANKS AND DEPOSIT INSURANCE

Number of banks and branches .................................................... 136

Assets and liabilities of banks......................................................... 157

Income of insured banks ............................................................... 179

Banks closed because of financial difficulties; 

deposit insurance disbursements................................................ 195

VII

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Federal Reserve Bank of St. Louis
Vlll

TABLES

DEPOSIT INSURANCE DISBURSEMENTS:

1. Protection of depositors of failed banks requiring disbursements by

the Federal Deposit Insurance Corporation, 1934-1975 ................... 6

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

transactions, January 1, 1934-December 31, 1975 ............................ 7

3. Insured banks closed during 1975 requiring disbursements by the Federal Deposit Insurance C orporation........................................................ 8

SUPERVISORY A C TIV ITIE S :

4. Bank examination activities of the Federal Deposit Insurance Corporation in 1974 and 1975 ............................................................................. 11

5. Mergers, consolidations, acquisitions of assets and assumptions of liabilities approved under section 18(c) of the Federal Deposit Insurance A ct during 1975 ............................................................................... 15

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

during 1975— banks grouped by size and in States according to 

status of branch b a n kin g ..................................... ..................................... 16

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

unsound banking practices or violations of law or regulations,

1936-1975..................................................................................................... 17

8 . Cease-and-desist orders and actions to correct specific unsafe or unsound practices or violations of law or regulations, 1975 ................ 18

A D M IN IS TR A TIO N OF THE CORPORATION:

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

Corporation, December 31, 1974 and 1975 ........................................ 25

FINANCES OF THE CORPORATION:

10. Statement of financial condition, Federal Deposit Insurance Corporation, December 31, 1975 ........................................................................ 26

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

Insurance Corporation, year ended December 31, 1975 ................... 27

12. Determination and distribution of net assessment income, Federal

Deposit Insurance Corporation, year ended December 31, 1975 . . . 28

13. Sources and application of funds, Federal Deposit Insurance Corporation, year ended December 31, 1975 ................................................... 28

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

year, from beginning of operations, September 11, 1933, to December 31, 1975 ......................................................................................... 30

15. Insured deposits and the deposit insurance fund, 1934-1975 ................ 31

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Federal Reserve Bank of St. Louis
IX

NUMBER OF BANKS AND BRANCHES:

Explanatory note .................................................................................................... 137

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

United States (States and other areas) during 1975 .......................... 138

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

States (States and other areas) during 1975 by State ..................... 140

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

areas), December 31, 1975

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

by State or area and type o f o ffic e ................................................. 142

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

(States and other areas), December 31, 1975

Banks grouped by class and deposit size........................................ 151

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

(States and other areas), December 31, 1975

Banks grouped by deposit size and S ta te ..................................... 152

ASSETS AND LIA B ILIT IE S OF BANKS:

Explanatory note .................................................................................................... 157

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

(States and other areas), June 30, 1975

Banks grouped by insurance status and class o f b a n k ................ 159

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

(States and other areas), December 31, 1975

Banks grouped by insurance status and class o f b a n k ................ 163

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

(States and other areas), June 30, 1975, and December 31, 1975 

Banks grouped by insurance status ................................................. 167

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

States (States and other areas), December call dates, 1965,

1971-1975 ................................................................................................ 169

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

States (States and other areas), December call dates, 1965,

1971-1975 ................................................................................................ 172

111 . Percentages of assets and liabilities of insured commercial banks

operating throughout 1975 in the United States (States and other

areas), December 31, 1975

Banks gro up ed by amount o f dep os i t s .......................................... 174

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

operating throughout 1975 in the United States (States and other

areas), December 31, 1975

Banks grouped by amount o f deposits.......................................... 175

113. Distribution of insured commercial banks in the United States

(States and other areas), December 31, 1975

Banks grouped according to am ount o f deposits and by ratios

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o f selected i terns to assets o r deposits............................................ 176

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Federal Reserve Bank of St. Louis
X

INCOME OF INSURED BANKS:

Explanatory note .................................................................................................... 179

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

other areas), 1967-1975 ........................................................................ 182

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

(States and other areas), 1967-1975 ................................................... 184

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

other areas), 1975

Banks grouped by class o f b a n k ...................................................... 185

117. Income of insured commercial banks operating throughout 1975 in

the United States (States and other areas)

Banks grouped by amount o f deposits.......................................... 187

118. Ratios of income of insured commercial banks operating throughout

1975 in the United States (States and other areas)

Banks grouped according to amount o f deposits ....................... 189

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

and other areas), 1971-1975 ................................................................. 191

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

States (States and other areas), 1971-1975 ........................................ 193

BANKS CLOSED BECAUSE OF FIN AN C IAL D IFFICULTIES;

DEPOSIT INSURANCE DISBURSEMENTS:

Explanatory note .................................................................................................... 196

121. Number and deposits of banks closed because of financial d ifficulties, 1934-1975 .................................................................................. 197

122. Insured banks requiring disbursements by the Federal Deposit Insurance Corporation during 1975 ............................................................. 198

123. Depositors, deposits, and disbursements in failed banks requiring disbursements by the Federal Deposit Insurance Corporation, 

1934-1975

Banks grouped by class o f bank, year o f deposit pa yo ff or

deposit assumption, am ount o f deposits, and S ta te ...................200

124. Recoveries and losses by the Federal Deposit Insurance Corporation

on principal disbursements for protection of depositors,

1934-1975 ............................................................................................... 203

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Federal Reserve Bank of St. Louis
XI

BANKING OFFICES— BANK PERFORMANCE-1975

In 1975, for the sixth consecutive year, there was an increase in 

the number of commercial banks operating in the United States, 

but the increment was less than in 1974. The number of banks 

increased by 173, reaching a total of 14,654 at year-end 1975. New 

commercial banks beginning operations during the year totaled 264, 

while 94 banks were eliminated by mergers. Other factors resulted 

in a net addition of three banks to the total (table 101).

Texas, Florida, and Illinois each reported 30 or more new banks. 

These three unit-banking States accounted for over one-third of all 

newly organized banks, while California and Colorado, the latter 

also a unit-banking State, reported 21 and 17 respectively (table 

102). The number of banks declined in 14 States. The largest such 

decline was 9 institutions in New Jersey, where mergers eliminated 

12 banks. In Pennsylvania, where the number of banks has declined 

by 30 percent in the last 10 years, a net decrease of eight banks 

occurred in 1975.

The number of mutual savings banks declined by four during 

1975, as a result of five absorptions and one bank beginning operations. A t year-end, these banks were operating in 17 States and 

Puerto Rico; 11 of these were Northeastern States.

Insured commercial banks at the end of 1975 totaled 14,385, an 

increase of 155 from 1974. Of this net increase, insured State banks 

not members of the Federal Reserve System gained 147, national 

banks gained 34, and State member banks lost 26. The margin of 

new banks above banks lost by mergers was 115 for insured nonmember banks, 37 for national banks, and 1 for State member 

banks. A t the same time, the insured nonmember group gained 30 

banks from national and State member banks changing their supervisory class; national banks decreased by 2, and State member 

banks decreased by 28 as the result of these changes.

Of the 269 noninsured commercial banks at year-end 1975, 192 

were banks of deposit and 77 were nondeposit trust companies. Net 

additions of 5 noninsured trust companies and 13 other noninsured 

banks were recorded in 1975. Continuing a trend of recent years, 

branches of foreign banks accounted for the major share of institutions entering the banking system with noninsured status. Of the 12 

noninsured banks of deposit beginning operations, 8 were branches 

of foreign banks; 6 foreign branches were located in Chicago, 1 in 

New York City, and 1 in Puerto Rico. During the year, five noninsured banks converted to insured status, with four becoming 

insured nonmember banks and one becoming a State member bank.

Branches of commercial banks increased by 1,557 during 1975; 

at year-end the number in operation was 30,262. Over one-half of 

commercial bank branches are located in seven States, but these

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Federal Reserve Bank of St. Louis
XII F E D E R A L DEPOSIT IN S U RA N C E C O R P O R A TIO N

States accounted for only slightly more than one-third of the 

growth in number of branches during 1975. The total increase in 

branches, though well above the average increase for the previous 

decade, was 430 less than in the peak year 1974, and 289 less than 

in 1973. Compared to 1974, declines in new branching were widespread. Only about eight States reported substantially more new 

branches or facilities than during 1974, and most of these States 

were relatively less populous States, or States where full service 

branching is closely restricted under State law or regulations.

During 1975, the economy passed the most severe economic 

recession since the 1930s, the inflation rate decreased, and money 

market rates declined sharply from 1974 levels as demand for funds 

waned. Total assets of insured commercial banks increased by only

4.4 percent during 1975. Most of the additional funds available to 

banks during the year were invested in U.S. Treasury securities, this 

reflecting weak loan demand, bank policies of rebuilding liquidity, 

and the availability of larger amounts of these securities with the 

rising Federal deficit. Investment in tax-exempt securities rose by 

slightly more than 5 percent, this moderate growth probably reflecting the somewhat lower level of taxable operating earnings of 

insured commercial banks compared to 1974, as well as the uncertainties which pervaded the municipal market especially in 1975. 

Total loans declined slightly from year-end 1974 to year-end 1975; 

real estate and total consumer lending each rose by about 3 percent, 

but commercial and industrial loans declined by more than 4 percent. As a result of these changes, there was some increase in the 

ratio of U.S. Treasury securities to total assets, while the ratio of 

loans to total assets declined.

Total deposits of commercial banks rose about 4.6 percent, with 

demand deposits growth only about one-third of the 6.3 percent 

rise in time and savings deposits. Banks reduced their use of large 

CDs during the year, and apparently also lengthened somewhat the 

maturities of these deposits.

Insured commercial banks added to their capital accounts at an 

8.6 percent rate during 1975, and there was some improvement in 

the ratio of capital to assets of banks generally. Capital notes and 

debentures contributed less than $150 million to capital accounts, 

about the same amount as in 1974. The percentage of equity capital 

to total capital accounts at year-end 1975 was virtually unchanged 

from a year earlier.

Insured commercial banks reported only a small increase in net 

income in 1975— about 2.3 percent. Net operating income declined

2.4 percent because of lower rates charged on loans and the slackening in loan demand, and the drop in operating income was not 

entirely offset by a decline in operating expenses. The major o ffsetting item was interest and dividends paid on deposits which

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Federal Reserve Bank of St. Louis
B A N K IN G O F FIC E S — B A N K P E R F O R M A N C E -1 9 7 5 XIII

declined almost 6 percent during the year. Interest paid on large 

CDs declined substantially, reflecting the softer demand for these 

volatile funds, and also increases in other deposits, especially savings. As a corollary to these developments, the interest spread 

between what banks paid for deposits and what they earned on 

assets increased. The average spread in 1975 wasabout 1.28 percent, 

up about 39 basis points from the year before.

Charge-offs of bad loans were much higher in 1975, in part 

because of recession-associated business failures. Although these 

included some failures of real estate investment trusts, in most cases 

of troubled REITs, the institutions remained in operation by virtue 

of renegotiated terms of loans including reduced or suspended loan 

interest. Net loan charge-offs by insured commercial banks in 1975 

were $3.2 billion, compared to $2.0 billion in 1974, however, the 

amount charged to operating expenses exceeded loan charge-offs by 

$400 million. As a result of this and a decline in total loan volume, 

loan loss reserves as a percent of total loans rose 7 basis points to 

1.72 percent at the year-end.

Mutual savings banks benefitted as inflation moderated in 1975, 

and as short-term interest rates declined sharply from their 1974 

highs. Competing money market rates at times even fell below the 

rates paid by mutual savings banks— bringing significant inflows of 

deposits into these banks. Deposits rose 11.3 percent in 1975, with 

almost two-thirds of that increase occurring in the first half of the 

year. Mutual savings banks used these new funds, for the most part, 

to purchase government and corporate securities. U.S. Treasury and 

Federal agency securities increased 57.8 percent during the year. 

Mutual savings banks increased their total loans by 3.4 percent, or 

$2.6 billion, during 1975, compared to a 2.5 percent increase during 1974. However, loan activity declined in 1- to 4-family FHAinsured and VA-guaranteed mortgages and in construction loans.

Earnings from loans and investments of mutual savings banks 

continued to rise except for "other loans." Earnings on "other 

loans," which are mostly Federal funds sold and short-term passbook loans, were affected by lower short-term rates. On the average, insured mutual savings banks' return on real estate loans was up 

26 basis points to 7.22 percent, but at the same time, average 

interest and dividend payments on deposits increased 20 basis 

points to 5.98 percent. Net operating income increased almost 10 

percent in 1975, but because interest paid on deposits was up 

nearly 12 percent, net operating income after interest and dividends 

dropped 4.5 percent, or $28 million. However, because of an $86 

million reduction in losses from securities sold, savings banks 

showed a 15.1 percent increase in after-tax net income from 1974 

to 1975. Large savings banks, those with over $500 million of 

deposits, had somewhat lower earnings on total assets compared to

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Federal Reserve Bank of St. Louis
XIV F E D E R A L DEPO SIT IN S U R A N C E C O R P O R A T IO N

the smaller banks, reflecting lower rates of return on loans and 

larger losses on securities.

DEPOSIT INSURANCE PARTICIPATION AND COVERAGE

Federal deposit insurance is available to incorporated banks and 

trust companies that are engaged in the business of receiving deposits. Under section 4(b) of the Federal Deposit Insurance Act, 

Federal deposit insurance is mandatory for all national banks and 

for State banks that are members of the Federal Reserve System. 

Institutions participating in the Federal deposit insurance program 

on December 31, 1975, included more than 98 percent of all 

commercial banks in the United States, and nearly 70 percent of all 

mutual savings banks. There were 269 operating commercial banks 

(including nondeposit trust companies) and 147 mutual savings 

banks not insured by the FDIC. Of the noninsured commercial 

banks, one or more operated in each of 38 States and 20 or more 

operated in each of 3 States (Colorado, Illinois, and New York). A t 

year-end 1975, all except one of the mutual savings banks not 

insured by the FDIC were located in Massachusetts and were 

covered under an insurance program of that State. During the year, 

12 mutual savings banks in Massachusetts became insured by the 

FDIC.

Public Law 93-495, which was effective November 27, 1974, 

amended the Federal Deposit Insurance Act to double insurance 

coverage from $20,000 to $40,000, and for most public funds, 

including State and local government time and savings deposits 

(except deposits held in out-of-State banks) and Federal deposits, 

to increase coverage five-fold to $100,000. The Corporation's survey of accounts and deposits on June 30, 1975 showed that, in all 

insured banks, 276.5 million depositors or accounts held deposits of 

$844.9 billion. Of these accounts, about 99.4 percent had deposits 

not exceeding $40,000 in private accounts and $100,000 in government time and savings accounts (chart A).

For all insured banks on June 30, 1975, an estimated 64.3 percent of total deposits in those banks were insured; in commercial 

banks and mutual savings banks the estimated percentages were 

60.1 percent and 98.0 percent respectively. Since June 30, 1972, 

when the previous complete survey of deposits was conducted, 

these various percentages increased from 3.4 to 3.8 percentage 

points. These increases were the result of the higher limits of insurance per depositor which became effective in November 1974, and 

also they reflected changes in the composition of deposits, particularly the relatively large growth in IPC time deposits, during that 

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Federal Reserve Bank of St. Louis
DEPO SIT IN S U R A N C E P A R T IC IP A T IO N A N D C O V E R A G E XV

D E P O S IT A N D D E P O S IT O R IN S U R A N C E

ALL INSURED BANKS, JUNE 3 0 , 1975

A C C O U N T S

T o ta l n u m b e r: 2 7 6 .5 m illio n

D E P O S IT S

T o ta l a m o u n t: $ 8 4 4 .9 b illio n

35.7°/

N o n in su re d

C h a rt B

D EPO SITS BY SIZE A N D TYPE OF A C C O U N T

ALL INSURED BAN K S , JUNE 3 0 , 1975

TYPE OF AC CO UN T

D e m an d , IPC

S avings, IPC

O th e r tim e , IPC

P ublic funds, dem and

Public funds,

tim e & savings Accounts o f $40,000 or less

$ 4 0 ,00 1 -$ 1 0 0 ,0 0 0 

t I $100,001 or more

4- H- HIPC — Individuals, partnerships, and corporations 

^Includes foreign, interbank, and certified check deposits

90 120 150 180 210

DEPOSITS (BILLIO NS OF DOLLARS)

+ H

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XVI F E D E R A L DEPO SIT IN S U R A N C E C O R P O R A T IO N

In all insured banks, while more than 92 percent of savings deposits of individuals, partnerships, and corporations were held in 

accounts of $40,000 or less in 1975, only 50 percent of IPC demand deposits were held in accounts of $40,000 or less (chart B). 

About 12 percent of public deposits were held in accounts of 

$100,000 or less. The largest proportion of deposits insured was an 

estimated 96.4 percent for IPC savings deposits (chart C). In contrast, only 25.4 percent of public deposits were insured; however, 

such deposits are frequently protected by the posting of collateral 

in addition to the coverage of deposit insurance.

C h a rt C

IN SUR ANC E OF DEPOSITS BY TYPE OF ACC O U NT

ALL INSURED BANKS, JUNE 3 0 , 1975

TYPE OF ACCOUNT

D em an d , IPC

Savings, IPC

O ther tim e , IPC

Public fund s, dem and

Public funds,

tim e & savings

Insured deposits 

mm Noninsured deposits

H------h

90 120 150 180 210

DEPOSITS (BILLIONS OF DOLLARS)

H------1

^Includes foreign, interbank, and certified check deposits

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Federal Reserve Bank of St. Louis
OPERATIONS OF THE CORPORATION

PART ONE

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Federal Reserve Bank of St. Louis
DEPOSIT INSURANCE DISBURSEMENTS

The Federal deposit insurance program began at a time of severe 

crisis in the financial system of the nation, just following a period 

of several years when the failure rate among commercial banks was 

a thousand or more each year. The deposit insurance program provided by the legislation was intended to serve several purposes, the 

most urgent being to restore confidence in the banking system, and 

eliminate “ runs" on banks. The legislation also provided for ongoing supervisory activities by the Corporation for helping to 

strengthen the nation's operating banks. Of equal importance was 

the objective of protecting individual depositors within the limits of 

insurance, as well as protecting the nation's money supply from the 

eroding effects of bank failures.

Protection of depositors, 1934-1975. Under the Banking Act of 

1933, in the event of a closure of an insured bank, the Corporation 

could make payment to depositors directly or through another 

bank up to the lim it of deposit insurance per depositor. In 1935 the 

Corporation was given a second method of protecting depositors of 

failed banks. In order to reduce its risk or expected losses, the 

Corporation was authorized to assist the absorption of a failing 

institution, or the assumption of its deposits by another insured 

bank. In assumption cases, all bona fide depositors in the failing 

institution are fully protected, regardless of the size of their accounts. The assumption method has been used in the majority of 

cases in recent years, and the average size of banks whose deposits 

were assumed has tended to be substantially larger than for insured 

banks closed with direct payments to depositors.

In 1950, when the Federal Deposit Insurance Act was reenacted, 

the FDIC was given authority under section 13(c) to assist, under 

certain circumstances, insured banks in danger of failing to remain 

in operation when the Board of Directors of the Corporation determines that the failing bank's services are essential to its community. 

This method of depositor protection has been used sparingly. The 

first use of assistance to operating banks under section 13(c) occurred in 1971, and it had been used in only three cases through the 

end of 1975.

Since 1934, a total of 519 failure cases involving insured banks 

have required the Corporation's disbursements, including 300 direct 

payoff cases and 219 deposit assumption cases. Although the number of failures of insured banks in the past few years has averaged 

only slightly above the average number each year since the early 

1940s (chart D), these recent failures have included several quite 

large institutions, requiring substantial increases in the Corporation's disbursements in failure cases.

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4 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

C h a rt D

INSURED BANK FAILURES, 1 9 3 4 -1 9 7 5

Number of

Banks

Number of

Banks

Due primarily to the financial assistance of the Corporation, 

depositors have recovered 99.5 percent of their total deposits in all 

failure cases, leaving just over one-half of 1 percent not paid (chart 

E). Total deposits recovered have amounted to more than $3.95 

billion, of which $3.52 billion were held in banks whose deposits 

were assumed by other insured banks with the Corporation's assistance. Of the $428 million paid to nearly 610 thousand depositors in 

payoff cases, almost three-fourths of this amount was paid by the 

FDIC, with the remainder paid from deposit offsets, security or 

preference, and liquidation of assets (table 1). Including the 

amounts disbursed in failure cases and assistance to operating 

banks, and all losses and provision for losses on assets being liquidated, the Corporation's losses of $254 million have amounted to

15.4 percent of its disbursements in all insurance operations (table 

2).

Liquidation activities. The Federal Deposit Insurance Act requires that the Corporation be appointed receiver of a closed 

national bank and that it accept appointment as receiver of an 

insured State bank if such appointment is tendered by the appropriate State authority and is either authorized or permitted by State 

law. In practice, the Corporation is appointed receiver of almost all 

closed insured State banks.

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DEPOSIT IN S U R A N C E D IS BU R S E M E NTS 5

DEPOSITS AND LOSSES 

IN FAILED INSURED B AN KS, 1 9 3 4 -1 9 7 5

T O T A L D E P O S IT S

$ 3 .9 7 B illio n

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

BY FD IC

$ 1 .6 5 B illio n

L o s s e s

to F D IC

$ 2 5 3 .9 m illion

d e p o s it o r s

$2 0.8 m illio n

Under authority delegated by the Corporation's Board of 

Directors, the Division of Liquidation is responsible for the liquidation not only of the assets of closed banks but also of any assets 

acquired by the Corporation when Corporation funds are used to 

facilitate •assumptions of deposits in failed banks. At year-end 1975, 

the Division was handling 68 open liquidation cases located in 28 

States and the Virgin Islands.

In connection with the Franklin National Bank liquidation, the 

FDIC's largest, the Corporation had received for administration just 

over $2.15 billion of the bank's assets through December 31, 1975. 

In addition, the Corporation was administering approximately $86 

million in loans charged off by Franklin National prior to its 

closing. By year-end 1975, the Corporation had succeeded in collecting almost $633 million on such assets, and had paid more than 

$598 million of this amount to the Federal Reserve Bank of New 

York, thereby reducing the principal amount due on the "window" 

loan extended to Franklin National at the time of closing to about 

$1.13 billion. Interest at the rate of 7.52 percent per annum on the 

note will not be due until the note matures on October 8, 1977. 

The principal book value of assets remaining to be liquidated as of 

December 31, 1975 was $1.61 billion compared with the principal 

and accrued interest on the FDIC's outstanding debt to the Federal

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6 F E D E R A L DEPOSIT IN S U R A N C E C O R P O R A TIO N

Table 1. PROTECTION OF DEPOSITORS OF FAILED BANKS REQUIRING 

DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,

1934-1975

A ll cases 

(519 banks)

Percent

Deposit 

p a yo ff cases 

(300 banks)

Percent

Deposit 

assumption cases 

(219 banks)

Percent

Number of depositors or accounts—total1...........

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

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

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

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

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

Full recovery not received as of December 31,

1975 ...............................................

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

Active c a se s........................................................

Amount of deposits (in thousands)-total...........

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

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

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

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

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

Not paid as of December 31,1975................

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

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

2,964,223

2,959,012

2,912,030

40,926

3,149

2,907

5,211

3,443

1,768

3,973,114

3,952,348

3,838,053

21,281

49,689

43,325

20,766

2,682

18,084

100.0

99.8

98.2

1.4

0.1

0.1

0.1

0.1

100.0

99.5

96.6 

0.5 

1.3 

1.1

0.5

0.1

0.4

614,772

609,561

562,5793 

40,926 

3,149 

2,907

3,443

1,768

449,336

428,570

314,2757 

21,281 

49,689 

43,325 

20,766

2,682

18,084

100.0

99.2

91.5

6.7

0.5

0.5

0.5

0.3

100.0

95.4

70.0 

4.7

11.1

9.6

4.6

0.6

4.0

2.349.451

2.349.451

2.349.451

100.0

100.0

100.0

3.523.776

3.523.776

100.0

100.0

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

2Through direct paym ent to depositors in deposit p a yo ff cases; through assumption of deposits by other insured banks, facilitated 

by FDIC disbursements of $1,198,176 thousand, in deposit assumption cases.

3 1ncludes 60,033 depositors, in term inated cases, who failed to claim their insured deposits (see note 7).

4 Includes only depositors w ith claims offset in fu ll; most o f these w ould have been fu lly protected by insurance in the absence of 

offsets.

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

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

7 1 ncl udes $190 thousand unclaimed insured deposits in term inated cases (see note 3).

8 1 ncl udes all amounts paid by offset.

9 1 ncludes all secured and preferred claims paid from asset liquidation; excludes secured and preferred claims paid by the 

Corporation.

I °lncludes unclaimed deposits paid to authorized public custodians.

I I Includes $7,862 thousand representing deposits available, expected through offset, or expected from proceeds of liquidations.

Reserve Bank of New York of $1.26 billion. Based on a number of 

assumptions about the duration of the receivership, the pace of 

collections, and the results of litigation, it appears unlikely that the 

Corporation will suffer any loss in this very large failure.

Banks failing in 1975. The Corporation's disbursements to protect depositors were required in 13 failures of insured banks during 

1975 (table 3). Total deposits of these banks, the largest of which 

was the $98.3-million American City Bank & Trust Company, N.A., 

amounted to $339.6 million. Failures of these banks were attributable to a variety of causes, the most common being managerial 

weakness in loan portfolio and general asset management, followed 

by self-serving loans and loans to unworthy borrowers. Among the 

other causes cited were improper loans to officers or directors, 

misuse of brokered funds, and kiting operations.

Ten of the failure cases during 1975 were handled by the deposit 

assumption method, and three by deposit payoffs. In two of the

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DEPOSIT IN S U R A N C E DIS BU R S E M E NTS

Table 2. ANALYSIS OF DISBURSEMENTS, RECOVERIES, AND LOSSES 

IN DEPOSIT INSURANCE TRANSACTIONS,

JANUARY 1, 1934— DECEMBER 31, 1975 

(In thousands)

Type of disbursement Disbursements Recoveries1 Losses

A ll d isbursem ents-total2 .............................................................................................. $1,650,589 $1,396,695 $253,894

Principal disbursements in deposit assumption and p a yo ff c a s e s -to ta l____ 1,513,219 1,276,264 236,955

Loans and assets purchased (219 deposit assumption cases):

To December 31, 1975..................................................................................

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

1,035,176 488,051

347,355

163,000

231,619

46,239

199,770

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

Deposits paid (300 deposit p a yo ff cases):

To December 31, 1 9 7 5 ...................................................................................

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

163,000

314,142

901

- 0 -

37,185

- 0 -

Advances and expenses in deposit assumption and p a yo ff c a s e s -to ta l____

Expenses in liquidating assets:

Advances to pro tect assets...........................................................................

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

Insurance expenses3 .......................................................................................

Field p a yo ff and other insurance expenses in 300 deposit p a yo ff cases3.

$ 80,889

45,131

23,942

5,125

6,691

$ 69,073

45,131

23,942

- 0 -

- 0 -

$ 11,816

- 0 -

- 0 -

5,125

6,691

Other d isb u rse m e n ts-to ta l.......................................................................................

Assets purchased to facilitate term ination o f liquidations:

To December 31, 1 9 7 5 ..................................................................................

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

$ 56,481

9,758

$ 51,358

4,870

488

$ 5,123

4,400

Unallocated insurance expenses3 ......................................................................

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

723

46,000

- 0 -

46,000

723

- 0 -

1 Excludes amounts returned to closed bank equity holders and $39.2 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 l\lot recoverable.

deposit payoffs, Swope Parkway National Bank and The Peoples 

Bank of the Virgin Islands, deposit insurance national banks were 

organized by the Corporation under section 11 of the Federal 

Deposit Insurance Act. In such cases, the Corporation immediately 

transfers to the new bank all insured deposits in the closed bank, 

and those funds are available to their owners as demand deposits in 

the absence of an agreement between the depositor and the transferee bank providing for a time or savings deposit. A deposit insurance national bank, which is managed by an executive officer 

appointed by the FDIC, has the purpose of providing essential interim banking services to a community deprived by these services 

because of a bank failure. By law, deposit insurance national banks 

can operate for a maximum of 2 years. In creating these banks in 

the two cases in 1975, the FDIC hoped to encourage both local 

communities to consider the establishment and capitalization of a 

new bank before there was a final disposition of the assets and 

deposits transferred from the insolvent bank.

In November 1975, the Corporation authorized a loan of up to 

$10 million to facilitate the merger of Palmer First National Bank 

and Trust Company of Sarasota, Florida, into a newly formed 

national bank subsidiary of Southeast Banking Corporation of 

Miami. This commitment was authorized by the Board of Directors 

under section 13(e) of the Federal Deposit Insurance Act only after 

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8 F E D E R A L DEPO SIT IN S U R A N C E C O R P O R A T IO N

Currency and the Board of Governors of the Federal Reserve System that such assistance was essential to effect the proposed acquisition and to prevent the imminent failure of the Palmer Bank. In 

January 1976, a new bank subsidiary of Southeast Banking Corporation (Southeast First National Bank of Sarasota) assumed the 

deposit liabilities and purchased certain assets of Palmer First 

National Bank and Trust Company. The transaction was facilitated, 

in part, by a $5 million loan from the FDIC to Southeast Banking 

Corporation, the proceeds of which were used to help capitalize the 

new bank.

Table 3. INSURED BANKS CLOSED DURING 1975 REQUIRING 

DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION1

Name and location

Date of 

closing 

or deposit 

assumption

Num ber 

of depositors

A m ount 

o f deposits 

(in th o u ­

sands)

Date of firs t paym ent to depositors 

or disbursement by 

FDIC

Depositors receiving 

fu ll recovery

Deposits 

paid 

(in th o u ­

sands)2

T o ta l....................................... 110,377 $339,630 110,333 $338,249

Deposit p a yo ff

Swope Parkway National 

Bank

Kansas City, Missouri January 3, 1975 6,497 7,435 January 4 ,1 9 7 5 6,490 7,162

Franklin Bank 

Houston, Texas March 24, 1975 4,353 18,248 March 2 9 ,1 9 7 5 4,325 17,226

The Peoples Bank of the 

Virgin Islands 

St. Thomas, Charlotte 

Amalie,

Virgin Islands O ctober 24, 1975 11,085 14,275 O ctober 25, 1975 11,076 14,189

Deposit assumption

N orthern Ohio Bank 

Cleveland, Ohio February 19, 1975 7,500 95,616 February 19,1 9 7 5 7,500 95,616

Chicopee Bank & Trust 

Company 

Chicopee, Massachusetts May 9, 1975 6,919 9,862 May 9 ,1 9 7 5 6,919 9,862

Algoma Bank 

Algoma, Wisconsin May 3 0 ,1 9 7 5 3,244 4,772 May 3 0 ,1 9 7 5 3,244 4,772

Bank of Picayune 

Picayune, Mississippi June 18, 1975 12,700 15,352 June 18,1 9 7 5 12,700 15,352

Bank of Chidester 

Chidester, Arkansas July 1 ,1 9 7 5 904 2,298 July 1,1975 904 2,298

State Bank of Clearing 

Chicago, Illinois July 12, 1975 19,353 60,603 July 12,19 7 5 19,353 60,603

Astro Bank 

Houston, Texas October 16, 1975 1,675 5,168 October 1 6,1975 1,675 5,168

American City Bank

& Trust Company, N.A. 

M ilwaukee, Wisconsin O ctober 2 1 ,1 9 7 5 32,105 98,344 October 2 1 ,1 9 7 5 32,105 98,344

The Peoples Bank 

W illcox, Arizona December 19, 1975 2,692 5,044 December 19, 1975 2,692 5,044

The First State Bank 

of Jennings 

Jennings, Kansas December 27, 1975 1,350 2,613 December 2 7 ,1 9 7 5 1,350 2,613

1 Figures adjusted to and as of December 31, 1975.

in c lu d e s $25,982 thousand paid by FDIC claim agents in deposit p a yo ff cases. W ith FDIC assistance, all deposits were made 

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

SUPERVISORY ACTIVITIES

The FDIC has general supervisory responsibilities with respect to 

insured State banks that are not members of the Federal Reserve

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S U P E R V IS O R Y A C T IV IT IE S 9

System. All banks chartered by the States are also supervised by the 

State authorities. On December 31, 1975, there were 8,595 insured 

nonmember commercial banks, 4,744 national banks, and 1,046 

State bank members of the Federal Reserve. Though constituting a 

majority of commercial banks in operation, banks supervised by the 

Corporation include a larger proportion of the smaller size institutions compared with national and State member banks. For example, on December 31, 1975, of those commercial banks having 

less than $100 million of deposits in domestic offices, insured 

nonmember banks represented about 61 percent in numbers, and 

50 percent in deposits (chart F). In contrast, the percentages for 

banks having deposits more than $100 million were 25 percent and 

11 percent, respectively. The number of large commercial banks in 

the insured nonmember category has, however, increased significantly in recent years. For example, during the 5-year period 

through 1975, the number of insured nonmember commercial 

banks having deposits of over $100 million rose from 87 to 231, 

and the number of these in the $500-million-plus category increased 

from 10 to 22.

Most of the larger mutual savings banks, in contrast to commercial banks, are supervised by the FDIC. At the end of 1975, the 

Corporation insured and supervised more than two-thirds of all 

mutual savings banks in the U.S., including 80 percent of the banks 

with more than $100 million of deposits, and all except one of the 

59 banks with deposits of more than $500 million.

Examinations. The Corporation regularly conducts examinations 

of all insured nonmember banks, except those subject to the selective examination withdrawal experiment which will be discussed, to 

determine their current condition, evaluate bank management, and 

discover and obtain correction of unsafe and unsound practices or 

violations of laws or regulations. The Corporation has authority 

under the Federal Deposit Insurance Act to examine any insured 

bank for insurance purposes. However, the Corporation receives the 

reports of examination conducted by other Federal bank supervisory agencies and thus rarely makes its own examination of any 

national bank or State bank member of the Federal Reserve.

In addition to periodic examinations, other examining and investigating activities of the Corporation are conducted in connection 

with applications for deposit insurance, applications for the establishment of branches, proposed mergers, and other activities of 

insured nonmember banks for which the prior approval of the 

Corporation is required. During 1975, the Corporation conducted 

7,354 regular examinations of main offices, only slightly more than 

in 1974 (table 4). Examinations of departments and branches were 

up about 17 percent while investigations in connection with applications for deposit insurance, branching, and merger activity were

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10 F E D E R A L DEPO SIT IN S U R A N C E C O R P O R A T IO N

C h a rt F SUPERVISIO N OF C O M M ER C IA L B A N K S 

IN THE UNITED S T A T E S , 

D e ce m b e r 3 1 ,1 9 7 5

NUMBER OF BANKS

All banks

(14,657)

Ban ks of

$100 million

or more

deposit size

(920 banks)

Banks under

$100 million

deposit size

(13,737 banks)

DEPOSITS OF BANKS

All banks

($793 billion)

Banks of

$100 million

or more

deposit size

($536 billion)

Banks under

$100 million

deposit size

($257 billion)

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Table 4. BANK EXAMINATION ACTIVITIES OF 

THE FEDERAL DEPOSIT INSURANCE CORPORATION 

IN 1974 AND 1975

A c tiv ity

Num ber

1975 1974

Field exam inations and investig a tio n s-tota l .............................................................................................. 28,254 22,699

E xam inations of main o ffic e s - to ta l........................................................................................................ 7,597 7,451

Regular exam inations of insured banks not members of Federal Reserve System ............... 7,354 7,331

Reexaminations or other than regular e x a m in a tio n s .................................................................... 207 98

Entrance exam inations of operating noninsured banks .............................................................. 26 13

Special e x a m in a tio n s ............................................................................................................................. 10 9

Exam inations of departm ents and b ra n c h e s ......................................................................................... 8,884 7,558

Exam inations of trust d e p a rtm e n ts ................................................................................................... 1,469 1,296

Exam inations of b ra n ch e s.................................................................................................................... 7,415 6,262

In v e s tig a tio n s ................................................................................................................................................. 3,998 4,515

New bank investigations ...................................................................................................................... 176 304

State banks members of Federal Reserve S y s te m .................................................................... 10 6

Banks not members of Federal Reserve S y s te m ...................................................................... 166 298

New branch inve stig a tio n s.................................................................................................................... 709 1,013

Mergers and c o n s o lid a tio n s ................................................................................................................. 124 212

Miscellaneous investigations ............................................................................................................... 2,989 2,986

Compliance e x a m in a tio n s ........................................................................................................................... 7,7751 3,1751

1 For explanation of the data, see page 11.

down somewhat from the year before. It should be noted that the 

data in table 4 on compliance examinations— which are applicable 

to various consumer affairs matters, and certain other areas including external bank security— are not comparable between the 2 years 

shown. Compliance reports were initiated as separate reports for 

most banks beginning in September 1974 (formerly were included 

as a part of the regular examination reports); however, such separate reports were made for banks in five States (including three 

States in the Selective Withdrawal Program) for the full year 1974.

The selective examination withdrawal experiment in the three 

States of Georgia, Iowa, and Washington, initiated in 1974, was 

continued through 1975. Under this program, the Corporation 

withdrew from its usual examination of each insured State nonmember bank in these States and, for a specified number of such 

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

the local State banking departments in determining their financial 

condition. A t year-end 1975, about 525 banks were affected by the 

Selective Withdrawal Program. Banks not under the withdrawal 

program, however, continued to be examined by the Corporation in 

each of the three States. Furthermore, the FDIC reserved the right 

to examine any State nonmember bank in the three States whether 

or not it was scheduled for exclusive State examination, and reserved the right to terminate or modify the program at any time. 

Under the Selective Withdrawal Program, the Corporation retained 

its statutory responsibility to determine compliance with certain 

Federal laws (see, for example, the “ Consumer Protection” section 

of this report). Each of the banks in the program was examined for

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

such compliance utilizing a special Compliance Examination Report 

developed for that purpose. As an outgrowth of the Selective Withdrawal Program, the Corporation now utilizes these same reports in 

its overall examination program and 7,775 such reports were generated by the field force during 1975.

During 1976 the program will be continued on a modified basis. 

The Corporation will examine the 60 percent of insured nonmember banks in Georgia that it did not examine during the past 2 

years, the 50 percent in Iowa it did not examine, and the 80 percent in Washington it did not examine. During the course of its 

examinations during 1976, the FDIC will examine these banks to 

assess their current condition, and will also evaluate the examinations performed during the previous 2 years by the respective State 

banking departments. The experiment, through 1975, indicated 

that most examination reports prepared by the State examiners in 

the three States were generally consistent with FDIC practices and 

procedures, and in most instances, they appeared to show an 

accurate view of the safety and soundness of the banks involved. 

Until the FDIC itself has examined those banks, however, a full 

evaluation of the experiment cannot be reached. The modifications 

being made in the program for 1976 will provide the Corporation 

with that opportunity.

Applications for deposit insurance. National banks become insured with the issuance of their charters, and State bank members 

of the Federal Reserve receive insurance upon becoming such 

members, while State nonmember banks apply directly to the Corporation for deposit insurance. In all cases, section 6 of the Federal 

Deposit Insurance Act specifies several criteria which the responsible agency must consider before approving or certifying an institution for deposit insurance. The criteria include the financial history 

and condition of the bank, the adequacy of its corporate 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.

During 1975, the Board of Directors considered 121 applications 

for Federal deposit insurance by proposed new banks or operating 

noninsured banks, approving 116 applications and denying 5 (one 

of which was subsequently approved following amendment to the 

application)(chart G). Thirty-one applications were also considered 

and approved on behalf of State member banks for continuation of 

their insured status following voluntary withdrawal of their 

membership from the Federal Reserve System; 28 of these applications were approved under delegated authority by the Corporation's 

Regional Directors.

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Applications to establish branches. Approval of the appropriate 

Federal supervisory agency is necessary before any insured bank 

may establish, or move, a branch office. Section 3(o) of the Federal 

Deposit Insurance Act defines a branch as "any branch place of 

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

lent." This definition may therefore include certain limited service 

facilities or other offices that are not regarded as branches under 

the laws of some States.

Of 505 applications considered in 1975 for the Corporation's 

prior consent to the establishment of new branches, 131 were 

approved by the Corporation's Board of Directors and 368 were 

approved under delegated authority by the Director of the FDIC's 

Division of Bank Supervision or by the Corporation's 14 Regional 

Directors. Six such applications were denied. Of 133 applications 

considered in 1975 for the Corporation's prior consent to the 

operation of limited branch facilities (9 of which were unmanned 

operations), 22 were approved by the Corporation's Board of 

Directors and 111 were approved under delegated authority.

Mergers. Approval of the appropriate Federal bank supervisory 

agency is required under section 18(c) of the Federal Deposit Insurance Act, as amended, before any insured bank may engage in a 

merger-type transaction. The Corporation is the deciding agency 

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of the Federal Reserve, or in any merger involving a noninsured 

institution with an insured bank. The Act specifies several criteria 

that must be considered by the deciding agency before approving an 

application, and requires further that the deciding agency shall 

request (except in emergency situations to prevent a bank failure), 

from each of the two other Federal bank supervisory agencies and 

from the Attorney General, a report on the competitive factors 

involved in each proposed merger transaction. Under the Act as 

amended, the Department of Justice may bring action under the 

antitrust laws to prevent the merger of an insured bank within 30 

days (or in situations requiring "expeditious action,'' within 5 days) 

after the merger has been approved by a Federal supervisory agency.

In 1975, the Corporation acted on 44 merger-type proposals, 

approving 41 and denying 3. The Corporation also approved 14 

applications for merger transactions involving corporate reorganizations which, as such, had no competitive effect. In addition, the 

Corporation adopted 47 advisory reports on what it considered to 

be competitive factors involved in proposed merger-type transactions between 2 or more operating banks. In 4 of those 47 reports, the Comptroller of the Currency was advised that the 

competitive factors present in the case were considered to be adverse, but the Comptroller nevertheless approved 3 of the transactions with no action taken on the fourth case at year-end 1975. 

All of the reports to the Federal Reserve System advised that the 

transactions would have no significant effects on competition. The 

Department of Justice did not institute suit to prevent consummation of the three adverse transactions approved by the Comptroller. 

Information on each merger application decided by the Corporation 

during 1975 is contained in pages 35-126 of this report.

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

1975 are detailed in tables 5 and 6. During the year, a total of 67 

institutions were absorbed, compared to 124 in 1974 (chart H). It 

should be noted that the merger statistics in chart H do not include 

corporate reorganizations of individual banking institutions, such as 

banks in process of forming one-bank holding companies, and other 

merger transactions that did not have the effect of lessening the 

number of existing operating banks (see table 5, note 1). With 

inclusion of certain of these mergers the number of approvals is 

appreciably larger; for example, the 41 FDIC approvals noted above 

include 10 mergers involving operating banks in the same holding 

company that are not included in chart H and tables 5 and 6.

Enforcement proceedings. When the Corporation finds that an 

insured State nonmember bank has violated an applicable law, rule, 

regulation, order, or supervisory agreement, or has engaged in an 

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S U P E R V IS O R Y A C T IV IT IE S 15

Table 5. MERGERS, CONSOLIDATIONS, ACQUISITIONS OF ASSETS AND 

ASSUMPTIONS OF LIABILITIES APPROVED UNDER SECTION 18(c)

OF THE FEDERAL DEPOSIT INSURANCE ACT DURING 1975

Offices operated

Banks Num 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 ............................................................................. 133 $54,855,083 2,206 2,204

Absorbing b a n k s .................................................................... 66 49,881,2042 1,8622 2,2042

Absorbed banks...................................................................... 67 4,973,879 344

N a tio n a l............................................................................. 28 3,471,767 247

State member FRS.......................................................... 8 484,887 40

Not member FRS............................................................ 29 1,013,672 55

N o n in s u re d ...................................................................... 2 3,553 2

CASES WITH RESULTING BANK 

A N A T IO N A L BAN K

Banks in v o lv e d ............................................................................. 63 29,275,032 1,370 1,370

Absorbing b a n k s .................................................................... 31 27,604,694 1,259 1,370

Absorbed banks .................................................................... 32 1,670,338 111

N a tio n a l............................................................................. 16 674,338 52

State member FRS.......................................................... 6 430,425 33

Not member FRS............................................................ 10 565,575 26

CASES W ITH RESULTING BANK 

A STATE B AN K M EM BER OF THE 

FED ER AL RESERVE SYSTEM

Banks in v o lv e d ............................................................................. 8 18,990,087 463 463

Absorbing b a n k s .................................................................... 4 17,089,587 355 463

Absorbed banks .................................................................... 4 1,900,500 108

N ational............................................................................. 2 1,740,201 100

State member FR S................................................... 1 44,440 6

Not member FRS............................................................ 1 115,859 2

CASES WITH RESULTING BANK 

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

FED ER AL RESERVE SYSTEM

Banks in v o lv e d ............................................................................. 62 6,589,964 373 371

Absorbing b a n k s .................................................................... 31 5,186,923 248 371

Absorbed banks .................................................................... 31 1,403,041 125

N ational............................................................................. 10 1,057,228 95

State member FRS.......................................................... 1 10,022 1

Not member FRS............................................................ 18 332,238 27

Noninsured in s titu tio n s ................................................ 23 3,553 2

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

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

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

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

3 Includes one savings and loan association.

attempts to secure voluntary correction by the bank's management, 

if, however, these efforts fail, the Corporation may initiate proceedings to terminate deposit insurance or it may initiate ceaseand-desist proceedings.

The Corporation has the statutory authority under section 8(a) 

of the Federal Deposit Insurance Act to initiate deposit insurance 

termination proceedings against any FDIC-insured bank. This 

authority requires the Corporation to first notify the bank concerned and the appropriate Federal or State banking authority of 

the alleged violations, unsafe or unsound practices, or condition of 

the bank giving rise to the proceedings. The bank is given a period 

of not more than 120 days to improve its condition or correct the 

offending violation or practice. If the bank fails to comply with the 

Corporation's directives within the prescribed period, an adminisDigitized for FRASER 

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Federal Reserve Bank of St. Louis
16 F E D E R A L DEPO SIT IN S U R A N C E C O R P O R A TIO N

poration's charges. With the substantiation of the Corporation's 

charges, the Board of Directors of the Corporation may terminate 

the insured status of the bank. In such instances, the depositors of 

the bank must be notified and insured funds on deposit at the time 

of termination, less any subsequent withdrawals, continue to be 

insured for a period of 2 years.

A t the beginning of 1975, deposit insurance termination proceedings against four banks remained open awaiting either expiration of the time period specified in which to make corrections, 

examination of the bank, or analysis of the most recent report of 

examination (table 7). Five additional proceedings were initiated 

during 1975 and four such proceedings were either concluded after 

corrections were effected, or the bank was closed. As a result, five 

deposit insurance termination proceedings were pending at year-end 

1975.

The Corporation likewise has the statutory authority under 

section 8(b) of the Federal Deposit Insurance Act to initiate ceaseand-desist proceedings. In such cases, the bank involved is served 

with a notice of charges which specifies the alleged violations or the 

unsafe or unsound practices engaged in, and fixes a date for an 

administrative hearing at which time the bank may respond to the 

charges against it. If the evidence presented at the hearing establishes the violations or the unsafe or unsound practices, or if the

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

DEPOSIT INSURANCE ACT DURING 1975,

BANKS GROUPED BY SIZE AND IN STATES 

ACCORDING TO STATUS OF BRANCH BANKING

Absorbing banks Absorbed banks

Number of banks by 

size (resources in $m ill ions)

Number

of

banks

Num ber

of

branches

Resources

(in

thousands)

Num ber o f 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 . 66 67 277 $4,973,879 7 13 21 18 8

- 5 ........................ 1 1 0 1,286 1 0 0 0 0

5 - 1 0 ........................ 7 7 6 72,143 0 5 1 1 0

1 0 -2 5 ........................ 5 5 0 23,268 3 2 0 0 0

2 5 -1 0 0 ........................ 18 18 17 391,372 1 3 8 6 0

1 0 0 -5 0 0 ........................ 21 21 39 899,923 1 2 9 7 2

Over 500 ........................ 14 15 215 3,585,887 1 1 3 4 6

Statewide branching 29 29 144 2,209,970 1 7 8 9 4

- 5 ........................ 1 1 0 1,286 1 0 0 0 0

5 - 1 0 ........................ 3 3 4 41,179 0 2 0 1 0

1 0 -2 5 ........................ 1 1 0 5,199 0 1 0 0 0

2 5 -1 0 0 ........................ 7 7 2 155,114 0 1 3 3 0

1 0 0 -5 0 0 ........................ 10 10 23 461,571 0 2 4 3 1

Over 500 ........................ 7 7 115 1,545,621 0 1 1 2 3

Lim ited-area branching 32 33 130 2,692,510 5 4 12 8 4

5 - 1 0 ........................ 3 3 2 22,231 0 2 1 0 0

1 0 -2 5 ........................ 4 4 0 18,069 3 1 0 0 0

2 5 -1 0 0 ........................ 7 7 12 173,592 0 1 4 2 0

1 0 0 -5 0 0 ........................ 11 11 16 438,352 1 0 5 4 1

Over 500 ........................ 7 8 100 2,040,266 1 0 2 2 3

U nit banking 5 5 3 71,399 1 2 1 1 0

5 - 1 0 ........................ 1 1 0 8,733 0 1 0 0 0

2 5 -1 0 0 ........................ 4 4 3 62,666 1 1 1 1 0

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S U P E R V IS O R Y A C T IV IT IE S 17

C hart H MERGERS APPROVED* BY

FEDERAL BANK SU PERVISO RY AGENCIES, 1 9 6 0 - 1 9 7 5

2 Q 0 ---------------------------------------------------------------------------------------------------------------------------------200

e h Approved by Comptroller of the Currency

* Certain mergers undertaken as part of internal reorganizations not included— see text. 

" * Period beginning May 13, 1960, to end of year.

bank consents to the issuance of such an order, the Corporation 

may issue a cease-and-desist order which not only requires the bank 

to end the offending violations or practices, but also to correct the 

conditions which resulted therefrom. Except where the order is

Table 7. ACTIONS TO TERMINATE INSURED STATUS OF BANKS CHARGED 

WITH UNSAFE OR UNSOUND BANKING PRACTICES OR VIOLATIO NS 

OF LAW OR REGULATIONS, 1936-1975

Disposition or status 1 9 3 6 -1 9 7 5 1

Started 

during 1975

Total banks against w hich action was ta k e n .................................................................................................. 229 5

Cases closed ..................................................................................................................................................... 225

Corrections m ade...................................................................................................................................... 98

Banks absorbed or succeeded by other banks ................................................................................ 75

W ith financial aid of the C o rp o ra tio n .......................................................................................... 66

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

Banks suspended p rio r to setting date of term ination of insured status by C o rp o ra tio n ... 

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

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

37

13

Banks suspended p rio r to or on date of term ination o f insured s ta tu s ............................. 9

Banks continued in o p e ra tio n ? ...................................................................................................... 4

Formal w ritte n corrective program imposed and 8(a) action d iscontinued............................. 1

Cease-and-desist order issued and 8(a) action d is c o n tin u e d ........................................................ 1

Cases n o t closed December 3 1 ,1 9 7 5 ....................................................................................................... 4 4

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

or an analysis of its m ost recent report of e x a m in a tio n ................................................... 4 4

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

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

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18 F E D E R A L DEPO SIT IN S U R A N C E C O R P O R A T IO N

entered into by consent, it may be appealed to the appropriate 

United States Court of Appeals. Thirteen such cease-and-desist 

orders against insured State nonmember banks were outstanding at 

the beginning of 1975, six of which were terminated during the 

year. Seven additional proceedings were initiated by the Corporation in 1975 and culminated in the entry of cease-and-desist orders. 

One other proceeding, which was outstanding at year-end and pending before the Corporation's Board of Directors after completion of 

an administrative hearing, also resulted in the issuance of a ceaseand-desist order. Accordingly, 15 such orders were outstanding at 

year-end 1975 (table 8).

Table 8. CEASE-AND-DESIST ORDERS AND ACTIONS TO CORRECT SPECIFIC UNSAFE 

OR UNSOUND PRACTICES OR VIOLATIONS OF LAW OR REGULATIONS, 1975

Total actions taken: 1971-1975................................................................................................................................ 42

Cease-and-desist orders issued in 19751................................................................................................................. 8

Cease-and-desist orders d is c o n tin u e d ............................................................................................................................................ 6

Cease-and-desist orders outstanding as of D ecem ber31, 1975 .............................................................................................. 15

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

occurred in 1971.

The Corporation also has the statutory authority under section 

8(g) of the Federal Deposit Insurance Act to initiate proceedings 

for the suspension or removal of officers, directors, and other 

persons participating in the management of insured State nonmember banks who are charged with committing or participating in 

a felony involving dishonesty or breach of trust, in any information, 

indictment, or complaint authorized by a United States attorney. 

Six such proceedings resulted in suspension or removal during 1975. 

Fifteen other individuals charged with felonies involving dishonesty 

or breach of trust voluntarily resigned or suspended themselves 

from their positions with insured State nonmember banks following 

indications that the Corporation might initiate suspension or removal proceedings against them.

One removal proceeding not based on a prior felony prosecution 

was initiated by the Corporation in 1975 under section 8(e) of the 

Federal Deposit Insurance Act, resulting in a summary suspension 

of the individual involved. A challenge of this suspension is presently before a United States District Court, while the removal 

proceeding remains pending following conclusion of the administrative hearing.

The constitutionality of certain of the removal sections of the 

Federal Deposit Insurance Act has been challenged in an action 

presently awaiting further determination by a three-judge panel of 

the United States District Court for the District of Columbia.

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S U PE R V ISO R Y A C T IV IT IE S 19

Problem banks. The number of problem banks increased dramatically in 1975 from 183 insured banks listed at year-end 1974 to 

349 at year-end 1975. Both figures include national banks and State 

member banks as well as the State nonmember banks the FDIC 

regularly examines, and most were listed because of loan portfolio 

weaknesses which were significantly aggravated by the effect of the 

1974-75 recession on many bank borrowers. One hundred sixteen 

of the listed banks, compared with 54 the prior year, were considered to present serious cause for supervisory concern, but almost 

100 of these were relatively small banks with less than $50 million 

in total deposits. The total deposits of these 116 banks were $5.3 

billion at the close of 1975, compared with $4.8 billion at the close 

of 1974.

Investor protection. 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 and 500 or more holders of any class of equity 

security. Under these provisions and the Corporation's regulations 

thereunder, such banks are required to file an initial registration 

statement, periodic reports (annually, semiannually, and quarterly), 

and special reports concerning any material event which occurs. 

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 1975, the Corporation received securities registration 

statements from 37 banks, bringing the year-end total of registered 

nonmember banks to 321 compared to 290 a year earlier. Additions included one registered bank that withdrew from the Federal 

Reserve System and two banks that converted from national to

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20 F E D E R A L DEPO SIT IN S U R A N C E C O R P O R A T IO N

State charter. Termination of the registration of nine banks resulted 

primarily from their merger into other operating banks or their 

acquisition by bank holding companies.

On June 4, 1975, Congress passed the Securities Acts Amendments of 1975 which significantly revised the Securities Exchange 

Act of 1934. Among other things, the Amendments impose, for the 

first time, registration requirements and a scheme of Federal regulation upon municipal securities dealers and transfer agents, including 

banks that act in those capacities. Both the Securities Exchange 

Commission and the Corporation have responsibilities for enforcing 

compliance with the newly enacted provisions. As of December 31, 

1975, 44 State nonmember banks (or separately identifiable departments or divisions of such banks) had registered as municipal securities dealers with the Securities and Exchange Commission and 419 

State nonmember banks had registered as transfer agents with the 

Corporation.

Consumer protection. The FDIC is responsible for administrative 

enforcement of the Truth in Lending Act, the Fair Credit Reporting 

Act, the Real Estate Settlement Procedures Act, the Fair Credit 

Billing Act, and the Equal Credit Opportunity Act insofar as they 

affect 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 to 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 standing.

The Real Estate Settlement Procedures Act of 1974, which 

became effective in June 1975, was designed to protect consumers 

from exorbitant or last-minute settlement charges by providing for 

the disclosure to prospective home buyers of settlement and credit 

costs prior to the actual settlement date. In this regard, Regulation 

X of the Department of Housing and Urban Development, which 

implements the Act, requires banks to use certain standardized 

forms and perform various details of the transaction in a specified 

manner and within specified time limits. In December 1975, the 

advance-disclosure requirements of the law were substantially 

modified.

The Fair Credit Billing Act, which is a new part of the Truth in 

Lending Act, is designed to help consumers resolve credit billing 

disputes promptly and fairly. The Act prohibits certain practices

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S U P E R V IS O R Y A C T IV IT IE S 21

deemed unfair to consumers using credit cards or other open-end 

accounts and certain practices between credit card issuers and retail 

merchants deemed to be anticompetitive.

The Equal Credit Opportunity Act, as originally enacted in 1974, 

has been implemented by the Federal Reserve's Regulation B. The 

Act is intended to make credit available to all credit-worthy customers regardless of sex or marital status. The provisions of Regulation B include requirements for using specific terminology in taking 

applications and for prohibiting the consideration of certain discriminatory factors in the decision to grant or deny credit to an 

applicant.

Checks for compliance with these laws are a routine part of the 

bank examination program for State nonmember banks conducted 

by FDIC examiners.

Office of Bank Customer Affairs. The creation of a separate unit 

within the Corporation to "receive and take appropriate action" 

upon complaints of "unfair or deceptive acts or practices. . . by 

banks" was required by Public Law 93-637 which was signed into 

law on January 4, 1975. Accordingly, in April 1975, the Corporation's Board of Directors created the Office of Bank Customer 

Affairs which reports directly to the Board of Directors and serves 

as a focal point within the FDIC for protecting the legitimate 

interests of bank customers. The Office will receive and dispose of 

all bank customer complaints and inquiries, and will make recommendations to the Board of Directors regarding the Corporation's 

policies and activities in bank customer affairs.

Changes in bank ownership and loans secured by bank stock. 

Any change in the ownership of an insured bank's outstanding 

voting stock that results in a change of control of the bank must be 

reported to the appropriate Federal bank supervisory agency. 

Section 7 of the Federal Deposit Insurance Act, as amended, requires also that a report be filed whenever any insured bank makes 

a loan secured by 25 percent or more of the outstanding stock of a 

bank (except stock held for more than 1 year or for newly organized banks). Banks must 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 437 notices of changes in control involving insured 

nonmember banks during 1975.

Bank security. The Corporation was given responsibility, under 

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

discourage certain external bank crimes, and to assist in apprehending persons who commit those crimes. Under section 326.5 of the 

Corporation's rules and regulations, as amended, each nonmember

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Federal Reserve Bank of St. Louis
22 F E D E R A L DEPO SIT IN S U R A N C E C O R P O R A T IO N

insured bank is required to submit compliance reports as of the last 

business day of June of each calendar year, and to submit crime 

reports following the perpetration of a robbery, burglary, or nonbank employee larceny. During 1975, the Corporation received 

1,203 crime reports filed pursuant to section 326.5(d) of its regulations.

Supervisory and other training activities. The Corporation's 

formal programs for bank examiners include various courses at the 

levels of trainee, assistant examiner, senior assistant examiner, and 

commissioned examiner. Two sessions of a newly designed course 

involving in-depth training in automation techniques were conducted in 1975.

Approximately 1,100 examiners from the Corporation, State 

banking departments, and foreign central banks participated in 

programs of the Bank Examination School during 1975. This 

number, which includes approximately 150 examiners from State 

banking departments participating under a joint program with the 

Conference of State Bank Supervisors, was about the same as in

1974. Examiners enrolled in training courses outside the Corporation include 75 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.

During 1975, the Office of Education and Publications coordinated a large number of training programs for Corporation employees at all levels and had special responsibility for administering 

the agency's tuition reimbursement policy. This liberal policy, 

revised and updated in 1972, provides financing for approved 

courses that help renew and update the skills of technical and professional personnel in the headquarters and regional offices. Courses 

include those offered by private industry, colleges and universities, 

technical courses, management and supervisory courses, clerical 

programs, and courses offered by the Civil Service Commission and 

other Government agencies.

Research and statistics. During the year, the Corporation joined 

with the other Federal bank supervisory agencies in making extensive revisions in the formats of the Report of Condition and the 

Report of Income which are submitted periodically by insured 

banks to the agency that examines them. The revisions, which related both to the items of information submitted and the frequency 

of reporting, are intended to result in more meaningful and timely 

information for bank supervisors, shareholders, depositors, and the 

general public and will be used for the first time for the March 31,

1976 reports.

The Corporation's Division of Research conducted a survey of 

accounts and deposits in all commercial and mutual savings banks as

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S U P E R V IS O R Y A C T IV IT IE S 23

of June 30, 1975. The survey gathered information for each banking office on numbers of deposit accounts, as well as deposit volume in different types and sizes of accounts. In August, the Division 

conducted a special survey of holdings of New York City obligations by insured nonmember banks. Other surveys obtained information about trust assets of insured commercial banks, mortgage 

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

and time deposits, and income and deposit flows of mutual savings 

banks. A sample survey of interest rates charged by insured commercial banks on selected types of loans was discontinued in 

October 1975. Results of most of these surveys are released in 

FDIC or other Government publications.

During 1975, the Corporation and the American Bankers 

Association jointly introduced a new version (BankSim) of the bank 

management simulation which has been in use at several graduate 

schools of banking for the past few years. BankSim, which is made 

available to private sector users by the American Bankers Association, is expected to be employed widely in the training programs of 

individual banks and other groups, including local chapters of the 

American Institute of Banking and the Corporation's training 

center.

"Working Papers" prepared during 1975 by staff members of the 

Division of Research are listed below. 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.

W orking

Paper N um ber

75— 1 "Aggregating Over Motives in the Demand for Money — A Unified Approach," by Stephen A. Buser.

75— 2 "Discrim inant Analysis: Application, Potential, and Pitfalls," by 

Robert A. Eisenbeis.

75— 3 "Commercial Bank Pricing and Local Market Power and Structure," by Alan S. McCall and Douglas Merrill.

75— 4 "M arket Structural Developments in Foreign Banking: Im plications for Regulatory P o licy/' by Gary G. Gilbert.

75— 5 "Characteristics of Retail Electronic Funds Transfer Systems in 

the United States/' by David A. Walker.

7 5 -6 "Effects of Regulators and Electronic Banking Machines on 

Bank Operating Characteristics," by David A. Walker and David 

J. Bell.

75— 7 "Influences of Financial Characteristics on Bank Stock Prices 

and Merger A c tiv ity ," by David A. Walker.

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24 F E D E R A L DEPO SIT IN S U RA N C E C O R P O R A T IO N

W orking

Paper Num ber

75— 8 ''Financial Management in Banks and Bank Holding Companies/ 7 by William A. Longbrake.

75— 9 "The Performance of Foreign Banks in the United States: Im plications fo r Federal Regulation/' by Gary G. Gilbert.

75— 10 "Franklin National Bank of New Y ork: A Portfolio and Performance Analysis of our Largest Bank Failure," by Joseph F. 

Sinkey, Jr.

75— 11 "New Congressional Restraints and Federal Reserve Independence," by Edward J. Kane.

75— 12 "Deposit-lnterest Ceilings and Sectoral Shortages of Credit: 

How to Improve Credit Allocation W ithout Allocating C redit," 

by Edward J. Kane.

75— 13 "Good Intentions and Unintended Evil: The Case Against 

Government Credit A llocation," by Edward J. Kane.

75— 14 "Commercial Bank Capacity to Pay Interest on Demand Deposits Part I: Principal Issues," by William A. Longbrake.

75— 15 "Commercial Bank Capacity to Pay Interest on Demand Deposits Part 11: Earnings and Cost Analysis," by William A. Longbrake.

Since 1969, the Corporation has awarded several fellowships each 

year for the purpose of promoting banking research as part of a 

program to improve and expand the information available to the 

bank supervisory agencies and the banking community. Selection for 

these awards is based on the assessment of the importance of the 

proposed research, the relevance of the 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. During 1975, the Corporation awarded fellowships to 4 

Ph.D. candidates, bringing the total number of such awards to 26 

since the initiation of the program.

ADMINISTRATION OF THE CORPORATION

Structure and employees. Membership of the Corporation's 

Board of Directors continued unchanged during 1975. Chairman 

Frank Wille and Director George A. LeMaistre, whose terms of 

office are for 6 years, took office on April 1, 1970 and August 1,

1973, respectively. Comptroller of the Currency James E. Smith, an 

ex officio member of the Board, began a 5-year term of office on 

July 5, 1973.

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A D M IN IS T R A T IO N OF TH E C O R P O R A T IO N 25

Corporation officials, Regional Directors, and Regional Offices 

are listed on pages v and vi.

Total year-end employment of the Corporation was 466 more 

than in 1974, including 247 additional nonpermanent employees 

serving on short-term appointment or on a when-actually-employed 

basis (table 9). Increases in the Division of Bank Supervision and 

the Division of Liquidation accounted for almost 9 of every 10 

additional Corporation employees in the year. About 87 percent of 

Bank Supervision personnel, and 70 percent of Liquidation personnel, were assigned to Regional or other field offices at the end of 

the year. Employees in some other divisions and offices were 

affected by certain organizational changes during 1975.

Reorganization. On January 1, 1975, the Board of Directors 

created the Office of Corporate Planning, to be a part of the Executive Offices. This office was staffed by employees formerly assigned 

to the Division of Research and the Division of Bank Supervision. 

Functions of this office, which reports directly to the Chairman and 

the Board of Directors, include the coordination of divisional planning efforts, and recommendations for consideration by the Board 

of Directors concerning planning priorities and related matters.

On July 1, 1975, the Board of Directors established the Office of 

Corporate Audits, separating the function from the Office of 

Management Systems and Financial Audits, the latter to be renamed the Office of Management Systems. Creation of the Office 

of Corporate Audits reestablished the Corporation's internal auditing function as a separate and independent operation, with direct 

reporting responsibility to the Chairman and the Board of Directors. The Office of Corporate Audits has the responsibility for 

making continuous and independent audits and evaluations of all 

functions relating to the Corporation's fiscal and accounting activities, systems of internal fiscal controls, liquidations of closed 

insured banks and related activities, electronic data processing 

operations, and any other audits of activities and operations as 

directed by the Board of Directors.

Table 9. NUMBER OF OFFICERS AND EMPLOYEES

OF THE FEDERAL DEPOSIT INSURANCE CORPORATION, DECEMBER 31, 1974 AND 1975

U nit

Total

Washington

office

Regional and other 

field offices

1975 1974 1975 1974 1975 1974

Total ............................................................... 3 ,2 7 4 * 2 ,8 0 8 * 971 775 2,303 2,033

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

Executive O ffic e s .................................. 51 39 51 39 0 0

Legal D iv is io n ......................................... 83 78 72 70 11 8

Division of Bank Supervision............... 2,282 2,054 300 191 1,982 1,863

Division of L iq u id a tio n ........................ 423 233 128 85 295 148

Division of Research............................. 85 91 85 91 0 0

O ffice o f the C o n tro lle r........................ 219 193 204 179 15 14

O ffice o f Management S ystem s.......... 109 117 109 117 0 0

O ffice of Corporate A u d its ................. 19 0 19 0 0 0

^Includes 508 nonperm anent employees on short term appointm ent or when actually employed in 1975, and 261 in 1974. 

IMonpermanent employees include college students participating in the w ork-study program, clerical workers em ployed on a 

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

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26 F E D E R A L DEPO SIT IN S U R A N C E C O R P O R A T IO N

FINANCES OF THE CORPORATION

Assets and liabilities. Assets of the Corporation at the end of 

1975 totaled $8.3 billion (table 10). More than three-fourths of this 

amount was U.S. Government obligations, which are valued on an

Table 10. STATEMENT OF FINANCIAL CONDITION,

FEDERAL DEPOSIT INSURANCE CORPORATION,

DECEMBER 31, 19751 

(In thousands)

ASSETS

$ 17,359

U.S. Government obligations:

Securities at amortized cost (face value $6,376,177; cost $6,358,006):

U.S. Treasury b ills ...............................................................................................................

Other U.S. Government s e c u ritie s ..................................................................................

$ 114,742 

6,251,348

$6,366,090

Accrued interest receivable...................................................................................................... 106,204 6,472,294

Assets acquired in receivership and deposit assumption transactions:

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

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

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

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

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

$ 65,686

900

1,790,443

4,477

$1,861,506

Less reserves fo r losses ............................................................................................................. 213,150 1,648,356

Notes purchased to facilitate deposit assumption:

Principal3 ................................................................................................................................

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

$ 163,000 

3,518 166,518

Assistance to operating insured banks:

Principal4 .....................................................................................................................................

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

$ 37,000 

1 37,001

Miscellaneous assets........................................................................................... 1,645

Land and office building, less depreciation on b u ild in g.......................................... 6,688

Total assets.......................................................................................... $8,349,861

L IA B IL IT IE S AND DEPOSIT INSURANCE FUND

Accounts payable and accrued liabilities................................................................ $ 4,053

Earnest money, escrow funds, and collections held for othe rs................................. 2,137

Accrued annual leave of em ployees...................................................................... 3,359

Due insured banks:

Net assessment income credits available July 1, 1976 (see table 12) ........................

O ther...............................................................................................................................................

$ 362,428 

1,098 363,526

Liabilities incurred in receivership and deposit assumption transactions:

Federal Reserve Bank indebtedness:

Notes payable.........................................................................................................................

Accrued interest payable5. .................................................................................................

$1,125,000

134,847 1,259,847

Net insured balances of depositors in closed insured banks-see related asset............. 900

Total liabilities.................................................................................... $1,633,822

Deposit insurance fund, net income accumulated since inception (see table 11)......... 6,716,039

Total liabilities and deposit insurance fund ............................................ $8,349,861

1 These statements:

a. Do not include accountability fo r the assets and liabilities of the closed insured banks fo r which the Corporation acts as 

receiver or liquidating agent.

b. Include transactions reflected in unaudited collection and disbursements reports from the liquidator of Franklin National 

Bank fo r the last quarter of 1975.

2 E quity in assets acquired under agreements w ith insured banks totaled $1,790 billion. Of this total approxim ately $1,125 b illio n 

represents equity in assets acquired as a result of the closing o f Franklin National Bank on October 8, 1974.

3 Notes purchased to facilitate deposit assumption: Crocker National C orporation, $50,000,000; Southern Bancorporation, Inc., 

$8,000,000; European-American Bank and Trust Co., $100,000,000; Clearing Bank, $1,500,000; Marine National Exchange Bank, 

$3,500,000.

4 Assistance to operating insured banks: Bank of the Commonwealth, $35,500,000, U nity Bank and Trust Company, $1,500,000.

5Accrued interest payable of $134.8 m illion represents interest fo r 450 days at the rate of 7.52 percent simple interest per annum on 

the unpaid principal am ount due on Franklin National Bank's indebtedness to the Federal Reserve Bank of New Y ork. This am ount 

is subject to adjustm ent fo r certain out-of-pocket expenses incurred by the Corporation as provided fo r in the Agreement of Sale.

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FIN A N C E S OF TH E C O R P O R A T IO N 27

amortized cost basis. About one-fifth of the total were assets acquired in receivership and deposit assumption transactions, representing mostly equity in assets held, less reserves, under agreements with insured banks. The remaining assets consisted of cash, 

assets acquired in transactions to assist operating insured banks, 

land and the depreciated value of office buildings, and miscellaneous assets.

The total liabilities of the Corporation at year-end were $1.6 

billion. Nearly $1.3 billion of this total consisted of a note, including accrued interest, held by the Federal Reserve Bank of New 

York, which the bank acquired in giving financial assistance to 

Franklin National Bank prior to the assumption of Franklin 

National's liabilities in 1974 by European-American Bank & Trust 

Company. The principal amount of this note had been reduced by 

$598.5 million through payments by the Corporation by the end of

1975. The remaining liabilities consisted largely of assessment 

credits due insured banks, virtually all of these becoming available 

on July 1, 1976.

The deposit insurance fund, consisting of the accumulated net 

income of the Corporation, totaled approximately $6.7 billion at 

year-end 1975. The fund represents those financial resources 

immediately available to the Corporation for the protection of 

depositors. The Corporation is authorized, in addition, to borrow 

up to $3 billion from the U.S. Treasury whenever such funds are 

needed for insurance purposes, but it has never used this borrowing 

authority.

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

FEDERAL DEPOSIT INSURANCE CORPORATION,

YEAR ENDED DECEMBER 31, 1975 

(In thousands)

Income from operations:

Deposit insurance assessments:

Assessments earned during 1975 ............................................

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

$ 640,915 

362,304 $ 278,611

Adjustm ents to assessments earned in prior p e rio d s ..................................................................... 318

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

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

P ro fit on sale of U.S. Government securities...................................................................................

Interest on capital n o te s .......................................................................................................................

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

$ 278,929

390,558

3,752

45

15,720

304

Total income from operations...................................... $ 689,308

Operating expenses and losses:

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

Provision fo r insurance losses...................................................

Less adjustments to provisions made in prio r p e rio d s ..............................

$ 32,577 

4,958

$ 67,688

27,619

Nonrecoverable insurance expenses incurred in protecting depositors................. 2,152

Total operating expenses and losses ................................ $ 97,459

Net income-addition to the deposit insurance fund.................................. $ 591,849

Deposit insurance fund-January 1, 1975........................................................................ 6,124,190

Deposit insurance fund-Decem ber 31,1975, net income accumulated since inception......... $6,716,039

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28 F E D E R A L DEPOSIT INS U RA N C E C O R P O R A T IO N

Table 12. DETERMINATION AND DISTRIBUTION OF 

NET ASSESSMENT INCOME,

FEDERAL DEPOSIT INSURANCE CORPORATION, 

YEAR ENDED DECEMBER 31, 1975 

(In thousands)

Determ ination o f net assessment incom e:

Total assessments th a t became due during 1 9 7 5 ....................................................................... $640,915

Less:

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

Net additions to reserve to provide fo r insurance losses:

Provisions applicable to banks assisted in 1975 ...........................................................

Less adjustm ents to provisions fo r banks assisted in p rio r years.............................

$ 32,577 

4,958

$ 67,688 

27,619

Nonrecoverable insurance expenses incurred to p ro te ct d e p o s ito rs -n e t........................... 2,152

T otal d e d u c tio n s ....................................................................................................... $ 97,459

N et assessment incom e fo r 1975 ......................................................................................................... $543,456

D istrib u tio n o f net assessment incom e, December 3 1 ,1 9 7 5 :

Net assessment income fo r 1975:

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

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

$181,152

362,304

T o ta l............................................................................................................................. $543,456

A llo ca tio n of net assessment incom e credit among insured banks, December 3 1 ,1 9 7 5 :

Percentage of 

total assessm ent becoming 

due in 1975

C redit fo r 1975 ..................................................................................................................................

Adjustm ents of credits fo r p rio r y e a r s ........................................................................................

$362,304

124

56.529%

.020

T o ta l............................................................................................................................. $362,428 56.549%

Income and expenses. The Corporation's income in 1975 

amounted to $689.3 million. Net income from assessments, which 

is gross assessments earned less assessment credits granted to insured 

banks, amounted to $278.9 million (tables 11, 12, and 13). Except 

for interest of $15.7 million on capital notes outstanding, virtually 

all of the remaining income was derived from the Corporation's 

holdings of U.S. Government securities.

Table 13. SOURCES AND APPLICATION OF FUNDS,

FEDERAL DEPOSIT INSURANCE CORPORATION,

YEAR ENDED DECEMBER 31, 1975 

(In thousands)

Funds provided by: Percent

Net deposit insurance assessments....................................................................................................... $ 278,929 8.7

Income from U.S. G overnm ent securities, less am ortized net discounts.................................. 390,558 12.1

M aturities and sales o f U.S. G overnm ent s e c u ritie s ....................................................................... 1,723,976 53.6

C ollections on assets acquired in receivership and deposit assumption tra n sa ctio n s............ 733,855 22.8

Increase in assessment credits due b a n k s ........................................................................................... 73,262 2.3

Income from capital n o te s ...................................................................................................................... 15,720 0.5

Total funds provided .................................................................................................... $3,216,300 100.0

Funds applied to :

A dm inistrative, operating, and insurance expenses, less miscellaneous c re d its ...................... $ 69,400 2.2

A cquisition o f assets in receivership and deposit assumption tra n s a c tio n s ............................. 921,596 28.6

Purchase of U.S. G overnm ent securities............................................................................................. 2,211,895 68.8

Net changes in other assets and lia b ilitie s ........................................................................................... 13,409 0.4

Total funds applied ....................................................................................................... $3,216,300 100.0

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FIN A N C E S OF THE C O R P O R A T IO N 29

C hart I

AND

Millions

of dollars

IN C O M E , EXPENSES A N D LO S S E S, 

A D D IT IO N S TO THE DEPOSIT IN S U R A N C E FUND

FEDERAL DEPOSIT INSURANCE CORPORATION, 

1 9 5 0 -1 9 7 5

Millions

of dollars

600

/

/

• /

• / 500

/

/ /

. /

.* /

• S c y d c m c r c — 300

2 00

✓ tA rtlM o to

a n d l o s s e s

i i i i i i i i i i i i i i i i i i i i i i i

— 100

19 50 '51 '52 '5 3 '5 4 '5 5 '5 6 '57 '58 '5 9 '6 0 '61 '62 '63 '6 4 '65 '6 6 '67 '68 '69 '7 0 '71 '72 '73 '74 '75

Total operating expenses and losses in 1975 amounted to $97.5 

million, a figure approximately 39 percent below the amount in

1974. The decrease in 1975 is attributable to a substantial net 

reduction in the provision for loan losses— $27.6 million compared 

with $97.9 million in the previous year. After deduction of expenses and losses from operating income, the addition to the 

deposit insurance fund for the year was $591.8 million.

Income and the deposit insurance fund. Income and expenses of 

the Corporation and additions to the deposit insurance fund from 

1934 through 1975, and the fund in relation to deposits in insured 

banks, are detailed in accompanying tables (tables 14 and 15). For 

the entire period since 1934, deposit insurance assessments have 

provided somewhat over one-half of the Corporation's total income, 

but in each year since 1961, net assessments have been exceeded by 

interest on securities. Banks have paid assessments for deposit insurance at a basic rate of 1/12 of one percent of total deposits (adjusted) since 1935; however, enactment of the Federal Deposit 

Insurance Act in 1950 included a provision for an assessment credit 

that would reduce substantially the net rate of assessment payments. It was provided initially that insured banks would receive 

each year, as a credit against future assessments, 60 percent of the 

difference between the Corporation's gross assessments earned and 

its total administrative and operating expenses and provision for

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30 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

Table 14. INCOME AND EXPENSES, FEDERAL DEPOSIT INSURANCE CORPORATION, 

BY YEAR, FROM BEGINNING OF OPERATIONS, SEPTEMBER 11, 1933,

TO DECEMBER 31, 1975 

(In millions)

Year

Income Expenses and losses

Net 

income 

added to 

deposit 

insurance 

fu n d 4

Total

Deposit

insurance

assessm ents1

Investments

and

other

sources2

Total

Deposit 

insurance 

losses and 

expenses

Interest 

on capital 

stock3

Adm inistrative

and

operating

expenses

1 9 3 3 -7 5 .. $7,711.3 $4,039.4 $3,671.9 $995.3 $254.1 $80.6 $660.6 $6,716.0

1975 .......... 689.3 278.9 410.4 97.5 29.8 67.7 591.8

1974 .......... 668.1 302.0 366.1 159.2 100.0 59.2 508.9

1973 .......... 561.0 246.0 315.0 108.2 53.8 54.4 452.8

1972 .......... 467.0 188.5 278.5 59.7 10.1 49.6 407.3

1 9 7 1 .......... 415.3 175.8 239.5 60.3 13.4 46.9 355.0

1970 .......... 382.7 159.3 223.4 46.0 3.8 42.2 336.7

1969 .......... 335.8 144.0 191.8 34.5 1.0 33.5 301.3

1968 295.0 132.4 162.6 29.1 .1 29.0 265.9

1967 .......... 263.0 120.7 142.3 27.3 2.9 24.4 235.7

1966 . . . 241.0 111.7 129.3 19.9 .1 19.8 221.1

1965 214.6 102.2 112.4 22.9 5.2 17.7 191.7

1964 197.1 93.0 104.1 18.4 2.9 15.5 178.7

1963 181.9 84.2 97.7 15.1 0.7 14.4 166.8

1962 . 161.1 76.5 84.6 13.8 0.1 13.7 147.3

1961 147.3 73.4 73.9 14.8 1.6 13.2 132.5

1960 144.6 79.6 65.0 12.5 0.1 12.4 132.1

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 151.1 122.7 28.4 6.4 0.3 6.1 144.7

1 9 4 8 . . . 145.6 119.3 26.3 7.0 0.7 0.6 5.7 138.6

1947 157.5 114.4 43.1 9.9 0.1 4.8 5.0 147.6

1946 . 130.7 107.0 23.7 10.0 0.1 5.8 4.1 120.7

1945 121.0 93.7 27.3 9.4 0.1 5.8 3.5 111.6

1944 99.3 80.9 18.4 9.3 0.1 5.8 3.4 90.0

1943 86.6 70.0 16.6 9.8 0.2 5.8 3.8 76.8

1942 69.1 56.5 12.6 10.1 0.5 5.8 3.8 59.0

1941 62.0 51.4 10.6 10.1 0.6 5.8 3.7 51.9

1940 55.9 46.2 9.7 12.9 3.5 5.8 3.6 43.0

1939 51.2 40.7 10.5 16.4 7.2 5.8 3.4 34.8

1938 47.7 38.3 9.4 11.3 2.5 5.8 3.0 36.4

1937 48.2 38.8 9.4 12.2 3.7 5.8 2.7 36.0

1936 43.8 35.6 8.2 10.9 2.6 5.8 2.5 32.9

1935 20.8 11.5 9.3 11.3 2.8 5.8 2.7 9.5

1 9 3 3 - 3 4 .. 7.0 (4 ) 7.0 10.0 0.2 5.6 4 .2 5 - 3 .0

1For the period from 1950 to 1975, inclusive, figures are net after deducting the portion of net assessment income credited to 

insured banks pursuant to provisions of the Federal Deposit Insurance A c t of 1950, as amended. Assessment credits to insured 

banks fo r these years am ount to $4,055 m illio n .

in c lu d e s $12 m illion of interest and allowable return received on funds advanced to receivership and deposit assumption cases and 

$28 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 which it applies. Initia l capital o f $289 m illion was retired by payments to the 

U.S. Treasury in 1947 and 1948.

Assessm ents collected fro m members of the tem porary insurance funds w hich became insured under the permanent plan were 

credited to their accounts at the term ination of the tem porary funds and were applied toward paym ent of subsequent assessments 

becoming due under the perm anent insurance fund, resulting in no income to the Corporation from assessments during the 

existence of the tem porary insurance funds.

5Net after deducting the p ortion o f expenses and losses charged to banks w ithdraw ing from the tem porary insurance funds on June 

30, 1934.

losses during the year. In 1961, the assessment credit was increased 

to 66-2/3 percent of net assessment income. The effective rate of 

net assessments in 1975 was 1/28 of one percent of total deposits 

(adjusted) in insured banks.

Deposits in all insured banks at year-end 1975 totaled $876 

billion, an estimated 65.0 percent of which were insured (chart J). 

Evidently the rise of 2.5 percentage points from 1974 was due

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FIN A N C E S OF THE C O R P O R A T IO N 31

Table 15. INSURED DEPOSITS AND THE DEPOSIT INSURANCE FUND, 1934-1975

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

1975 ...................... $875,985 $569,101 65.0% $6,716.0 .77% 1.18%

1974 ...................... 833,277 520,309 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 ...................... 610,685 374,5684 61.34 4,739.9 .78 1.274

1970 ...................... 545,198 349,581 64.1 4,379.6 .80 1.25

1969 ...................... 495,858 313,085 63.1 4,051.1 .82 1.29

1968 ...................... 491,513 296,701 60.2 3,749.2 .76 1.26

1967 ...................... 448,709 261,149 58.2 3,485.5 .78 1.33

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

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

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

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

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

1 9 6 1 ...................... 281,304 160,3094 57.04 2,353.8 .84 1.474

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

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

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

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

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

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

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

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

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

1 9 5 1 ...................... 178,540 96,713 54.2 1,282.2 .72 1.33

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

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

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

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

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

1945 ...................... 157,174 67,021 42.4 929.2 .59 1.39

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

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

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

1 9 4 1 ...................... 71,209 28,249 39.7 553.5 .78 1.96

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

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

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

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

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

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

1934 ...................... 40,060 18,075 45.1 291.7 .73 1.61

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

determined from special reports secured from insured banks.

2 December 20, 1963.

3 December 28, 1962.

4 Revised.

primarily to the relatively large growth in savings deposits during

1975, compared with increases in other types of deposit accounts 

having a much lower average percentage of insurance coverage. It 

may be noted that the 1975 estimate is based in part on information obtained in the June 30, 1975 survey of deposits, while the 

estimates for the preceding 3 years were based on comparable information developed from the June 30, 1972 survey. The data indicate 

that the ratio of the deposit insurance fund to total deposits in 

insured banks continues to be quite stable, while a gradual decline is 

continuing in the ratio of the fund to insured deposits.

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

Audit. Each year the financial transactions of the Corporation 

are audited by the General Accounting Office. A continuous internal audit is provided by the Office of Corporate Audits (see

page 25).

C hart J DEPOSITS IN INSURED B A N K S ,

A N D THE DEPOSIT IN SUR ANC E FUND,

1 9 5 0 -1 9 7 5

Billions Billions

of dollars of dollars

9 0 0 --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- --------- g 00

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

T O T A L D E P O S IT S

7 0 0 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------- 7 0 0

6 0 0 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------60 0

•**

50 0 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------- 50 0

40 0 -------------------------------------------------------------------------------------------------------------------------------------------------------------- . « * " * * * ------------------------------------------------------------------------------------------- 4 0 0

30 0 --------------------------------------------------------------------------------------------------------------------------- . . ♦ * * * --------------------------------------------- -------------------------------------------------------------------------------- 30 0

• ••***

200 ---------------- >t.‘.............. ............................------------------------------------------------- ---- 200

______ ______________________ IN S U R E D D E P O S IT S

1 0 0 ----------• " " -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 100

0. i ■■ i— i r. i TMi— i i i i— i— i— i— i— i— i— i— r~ ■ i — ni— i— i i i— 0

* D E P O S IT IN S U ^ A N C E ^ F U N D ___^ °

0— I— I— hH— I— I— I— I— I— h— I— I— I— h-H— I— I— I— I— I— I— I— I— I— I— I— 0

1950 ’SI '52 '53 '54 '55 '56 '57 '58 '59 'GO '61 '62 '63 '64 '65 '66 '6? '68 '69 '70 '71 '72 '73 '74 '75

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Federal Reserve Bank of St. Louis
f \

MERGER DECISIONS OF THE CORPORATION

PART TWO

v J

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BANKS IN VO LVED IN ABSORPTIONS APPROVED BY 35

THE FEDERAL DEPOSIT INSURANCE CORPORATION IN 1975

State Tow n o r C ity Bank Page

Alabama Arab

California Inglewood

Los Angeles 

San Diego

San Francisco

Connecticut Cromwell 

Hartford 

Middletown

North Canaan 

De Kalb County

Tucker

Goshen 

Portland 

Redkey 

Wakarusa

Cumberland 

Marion

Red Oak 

Minneapolis

Campbellsburg 

Morganfield 

New Castle

Uniontown 

Bangor

Portland

South Portland

Berlin

Princess Anne 

Massachusetts Boston

Marshall County Bank (in organization; change title to The Bank

of Arab) 117

The Bank of Arab 117

Centinela Bank (change title to

Tokai Bank of California) 73

Tokai Bank of California 73

United California Bank 41 

Southern California First National

Bank 77

The Bank of Tokyo of California 77

Cromwell Savings Bank 62

State Bank for Savings 102 

Farmers and Mechanics Savings

Bank 62

Canaan Savings Bank 102

The Citizens and Southern Emory

Bank 105 

The Citizens and Southern Bank

of Tucker 105

Salem Bank and Trust Company 96

The Peoples Bank 46

Union State Bank 46

Exchange State Bank 96

The Cumberland Savings Bank 59

Farmers State Bank 81

Marlinn, Inc. 81

Houghton State Bank 59

The Citizens National Bank of

Minneapolis 110

The Ottawa County Bank 110

United Farmers Bank 84

Union Bank & Trust Company 48 

Citizens Bank (change title 

to United Citizens Bank

and Trust Company) 84

The Farmers Bank of Uniontown 48

Colonial Industrial Bank 61

United Canal Bank 61 

Depositors Trust Company of

Portland 50 

South Portland Bank & Trust

Company 50

Exchange and Savings Bank of

Berlin 56

Bank of Somerset 56

The First National Bank of Boston 72

Georgia

Indiana

Iowa

Kansas

Kentucky

Maine

Maryland

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36 F E D E R A L DEPOSIT IN S U RA N C E C O R P O R ATIO N

State T o w n o r C ity Bank Page

Michigan Bay C ity Bay City Bank & Trust Company 117

Manufacturers Bank of Bay City

(in organization) 117 

Frankenmuth FBT Bank (in organization; change 

title to Frankenmuth Bank &

Trust) 117

Frankenmuth Bank & Trust 117

Mississippi Clarksdale Coahoma National Bank 8 6

Grenada Grenada Bank 8 6

Pontotoc Bank of Pontotoc 99 

Tupelo The Peoples Bank and Trust

Company 99

New Hampshire Concord New Hampshire Savings Bank 42

Hooksett The Hooksett Bank 53 

Laconia City Savings Bank of Laconia,

New Hampshire 42 

Nashua Colonial Trust Company 93 

First Financial Bank (in organization) 93 

Suncook The Suncook Bank 53

New Jersey Dunellen Peoples'Trust Company 44

Manalapan Bank of Manalapan 88 

Township

New Brunswick New Brunswick Trust Company 8 8

Union C ity Hudson United Bank 4 4

New Y ork New Y ork C ity Dry Dock Savings Bank 58

Fifth Avenue Savings and Loan

Association 58 

Luxembourg Branch of Bank of

Boston International 72

Ohio Kent The City Bank 117

The Kent Bank (in organization) 117 

Wadsworth The Citizens Bank & Trust

Company 118 

The Wadsworth Bank (in organization) 118 

Yellow Springs MDB Bank (in organization;

change title to The Miami

Deposit Bank) 117

The Miami Deposit Bank 117

Oregon Portland Security Bank of Oregon 64

The Oregon Bank 64

Pennsylvania Altoona Mid-State Bank and Trust Company 65

Bala-Cynwyd First Pennsylvania Bank, N. A. 112 

Coudersport The First National Bank of

Coudersport 82 

Dushore The First National Bank of

Dushore 6 8

Lower Burrell Keystone Bank 94 

Muncy Commonwealth Bank and Trust

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Company 82

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B A N K A BS O R P TIO N S A PP R O V E D BY THE C O R P O R A T IO N 37

State T o w n o r C ity Bank Page

Newfoundland

Philipsburg

Pittsburgh

Scranton

W illiamsport

South Carolina Columbia 

Jackson

Tennessee Cowan

Sewanee

Texas Austin

Crane 

Edna 

Houston 

Texarkana 

Victoria

Vermont Brattleboro

Enosburg Falls

Johnson

Waterbury

Virginia Charlottesville

Fairfax County 

Fredericksburg 

Hopewell

The First National Bank of

Newfoundland 39

The First National Bank of

Philipsburg 65

Commercial Bank & Trust

Company 94

Northeastern Bank of Pennsylvania 39 

Northern Central Bank and Trust

Company 6 8

First-Citizens Bank and Trust

Company of South Carolina 75

First State National Bank 75

The Bank of Cowan 70

Bank of Sewanee 70

Burnet Road State Bank (in organization; change title to North 

Austin State Bank) 117

North Austin State Bank 117

Citizens State Bank (in organization; change title to First State 

Bank) 118

First State Bank 118

New Jackson County Bank (in 

organization; change title to 

Jackson County State Bank) 117 

The Jackson County State Bank 117 

B ankofA lm eda 117

Brookfield State Bank (in organization; change title to Bank of 

Almeda) 117

Twin C ity Bank 117

Twin City State Bank (in organization; change title to Tw in City 

Bank) 117

American Bank of Commerce 117

North Laurent State Bank (in 

organization; change title to 

American Bank of Commerce) 117

First Vermont Bank and Trust

Company 90

The Enosburg Falls National Bank 99

Sterling Trust Company 99

Bank of Waterbury 90

Bank of Virginia-Cavalier County

(in organization) 117

Cavalier-County Bank 117

Bank of Virginia-Potomac 98

Bank of Virginia-Fredericksburg 98 

Cavalier Central Bank & Trust

Company 118

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Federal Reserve Bank of St. Louis
38 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

State T o w n o r C ity Bank Page

Other Areas

Belgium 

Virgin Islands

Hopewell (Cont.)

Newport News 

N orfolk

S uffolk

Winchester

Brussels

Charlotte Amalie, 

St. Thomas

City Bank of Hopewell (in organization; change title to Cavalier 

Central Bank & Trust Company 118 

Bank of Virginia-Peninsula 104

Bank of Virginia-Tidewater (change 

title to Bank of Virginia-Eastern) 104 

First Virginia Bank of Tidewater 101 

First Virginia Bank of Nansemond 101 

Bank of Virginia-Shenandoah

(in organization) 55

Virginia Loan and T h rift Corporation 55

United California Bank S.A./N.V. 41 

Virgin Islands National Bank 112

BANKS IN VO LVED IN ABSORPTIONS DENIED BY 

THE FEDERAL DEPOSIT INSURANCE CORPORATION IN 1975

Connecticut Chester Chester Bank 

Chester Savings Bank

119

119

New Hampshire Jaffrey Monadnock National Bank 

Monadnock Savings Bank

121

121

Oregon Grants Pass Southern Oregon State Bank 124

Rogue River Valley of the Rogue Bank 124

BANKS IN VO LVED IN ABSORPTION D EN IAL REVERSED 

BY THE CORPORATION IN 1975

Texas Alice First National Bank of Alice 

The Bank of South Texas

113

113

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

39

Resources

(in

thousands

of dollars

Ban kin g Offices

I n

operation

T o be

operated

Northeastern Bank of Pennsylvania

Scranton, Pennsylvania

512,523 14 15

to merge with

The First National Bank of Newfoundland

Newfoundland

10,160 1

Summary report by A ttorney General, October 9, 1974

Two of Northeastern Bank's offices are located w ithin 15 miles of Newfoundland Bank, w ith no competitive alternatives in the intervening area. Thus, 

it appears that the proposed transaction would eliminate some existing competition. It does not, however, appear that concentration in commercial banking would be substantially increased in any relevant banking market.

The modest size of Newfoundland Bank and the nature of the com m unity 

which it serves indicate that the proposed transaction would not eliminate 

substantial potential competition.

Therefore, we conclude that the proposed merger would not have a substantial competitive impact.

Basis fo r Corporation approval, January 29, 1975

Northeastern Bank of Pennsylvania, Scranton, Pennsylvania ("N o rth ­

e a ste rn "), a State nonmember insured bank with total resources of 

$512,523,000 and total IPC deposits of $410,847,000, has filed an application, 

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 The First National Bank of Newfoundland, Newfoundland, Pennsylvania ("FN B N ewfoundland"), w ith total resources of $10,160,000 and 

total IPC deposits of $8,834,000.* Northeastern, as an incident to the proposed merger, would establish the sole office of FNB Newfoundland as a 

branch. The resulting bank would have a total of 16 approved offices.

Competition. Northeastern operates a total of 14 offices: its main office and 

4 branches in Lackawanna County, 5 branches in Monroe County, and 4 

branches in Luzerne County. It also has the necessary approvals to establish an 

additional branch in Lackawanna County. Northeastern is the largest commercial bank operating in this three-county region of northeastern Pennsylvania 

(the Northeast Pennsylvania SMSA) although there are two other commercial 

banks that also control area IPC deposits in excess of $250 m illion.

FNB Newfoundland has its sole office in Newfoundland, a village of some 

450 inhabitants in southern Wayne County which is in the northeast corner of

* Financial data are as o f June 30, 1974, adjusted fo r Northeastern's subsequent merger 

w ith The P lym outh National Bank.

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Federal Reserve Bank of St. Louis
40 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

Pennsylvania adjacent to the New York State line. FNB Newfoundland draws 

the bulk of its business from communities w ithin 15 road-miles of the village. 

Its market comprises small sections of Wayne, Pike, and Monroe Counties, a 

sparsely populated area of wooded uplands located between the Moosic Mountains to the northwest and the Pocono Mountains to the southeast. Dairy and 

poultry farming are the principal income sources. The 1973 median household 

buying levels of Wayne County ($7,472), Pike County ($8,406), and Monroe 

County ($9,324) were all below the State average ($9,588).

The proposed merger would have its most immediate and direct impact 

within FNB Newfoundland's small local market consisting of about 10,000 

persons. Six commercial banks operate one office each in this market, w ith 

their combined IPC deposits totaling $27.2 m illion. FNB Newfoundland has 

the largest share of these IPC deposits, 32.4 percent, closely followed by The 

First National Bank of Lake Ariel, a unit bank of approximately the same size 

located 15 road-miles north of Newfoundland. The third largest share of IPC 

deposits in the market is held by a branch, 15 road-miles to the southeast of 

Newfoundland, of the $62-mi I lion-1 PC-deposit Security Bank and Trust Company, headquartered in Stroudsburg. Northeastern is one of three other commercial banks on the fringes of this small market, but its facility at the Tobyhanna Signal Corps Depot services only employees of the Depot. Northeastern 

has tw o full service branches in northern Monroe County, located about 20 

road-miles south and southwest of Newfoundland, but inform ation included 

w ith the application indicates that neither bank draws a significant amount of 

business from areas served prim arily by the other and that no significant existing com petition between the two banks would be eliminated by their merger.

A commercial bank may legally branch de novo or merge in Pennsylvania 

throughout the county in which its main office is located and in all counties 

contiguous thereto. Northeastern, thus, may establish de novo offices in those 

portions of Wayne and Monroe Counties w ithin FNB Newfoundland's market, 

expansion which would result in increased competition between the two banks. 

In view of the low income levels that prevail and the low ratio of inhabitants 

per banking office (1,147 as compared w ith 4,220 throughout Northeastern's 

maximum 6 -county potential market), Northeastern would be unlikely to 

establish any additional offices in FNB Newfoundland's market. The latter 

bank, in turn, has not branched de novo since it opened in 1926 and is unlikely, given its size and management resources, to undertake such expansion in 

areas served by Northeastern. Accordingly, it appears that no significant potential fo r increased com petition between the tw o banks through de novo branching in the future would be eliminated by their merger.

Within the 6 -county region in which Northeastern may expand de novo or 

by merger (its maximum potential market since Pennsylvania law does not 

permit the operation of multibank holding companies), a total of 50 commercial banks now operate 167 offices, these offices holding IPC deposits aggregating $2.5 billion. Northeastern has the largest share, 16.5 percent, of such 

commercial bank IPC deposits but a lesser percentage (8.4 percent) of the 

commercial bank offices in the region. Its merger w ith FNB Newfoundland 

would increase Northeastern's IPC deposit share in this m ulti-county region to 

16.9 percent. Banks w ith the four next largest shares would hold an aggregate 

of 32.8 percent of such deposits. This six-county region, thus, is not one of 

substantial concentration and it appears that no significant effect on the

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Federal Reserve Bank of St. Louis
B A N K ABS O R P TIO N S A PP R O V E D BY TH E C O R P O R A T IO N 41

commercial bank structure of the region would result from the slight increase 

in concentration which would occur because of the proposed merger.

Under these circumstances, 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. 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. No material change 

in services presently available to customers of Northeastern would result from 

the proposed merger. Customers of FNB Newfoundland, however, would have 

available a broader range of commercial bank services, including full fiduciary 

services, FHA and home improvement loan services, revolving, overdraft, and 

credit card services, a greatly increased lending lim it, and a wider choice of 

deposit maturities.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands

of dollars)

B anking O ffices

I n

operation

T o be

operated

United California Bank

Los Angeles, California

to acquire the assets and assume

the deposit liab ilities o f

9,076,910 262 262

United California Bank S.A./N.V.

Brussels, Belgium

65,864 1

Summary report by Attorney General, November 21, 1974 

The proposed transaction is simply a corporate reorganization and would 

have no competitive effect.

Basis fo r Corporation approval, February 11, 1975 

United California Bank, Los Angeles, California ("U C B "), an insured State 

bank and member of the Federal Reserve System having total assets of 

$9,076,910,000 and total deposits of $7,066,463,000, 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 acquire the assets of and assume liability to 

pay deposits made in United California Bank S.A./N.V., Brussels, Belgium 

(“ UCB Belgium"), a noninsured Belgian banking corporation having total assets 

of $65,864,000 and total deposits of $60,029,000.

The proposed transaction is in effect a corporate reorganization whose purpose is to change the legal form under which UCB conducts business in the 

Belgian market. The transaction consummated, UCB would carry on essentially 

the same business as has heretofore been conducted by UCB Belgium.

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

UCB acquired control of UCB Belgium in 1969 and presently owns 99.9 

percent of its outstanding stock.

Competition. It is evident that the proposed transaction would have no 

effect on existing or potential com petition between UCB and UCB Belgium or 

on the structure of commercial banking in any relevant area.

Financial and Managerial Resources; Future Prospects. Such resources and 

prospects are satisfactory fo r UCB. Financial resources of UCB Belgium appear 

to be acceptable, its managerial resources satisfactory. Future prospects of 

UCB Belgium appear to be more favorable as a branch of UCB than if it were 

to continue as a separate bank.

Convenience and Needs o f the Community to be Served. The proposed 

transaction would have no effect on the convenience and needs of any portion 

of UCB's markets in California. In UCB Belgium's market, the office of UCB, 

representing an $8 billion institution, should provide a stronger attraction fo r 

business than UCB Belgium has provided in the past.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands

of do^ars)

Banking Offices

In

operation

T o be

operated

New Hampshire Savings Bank

Concord, New Hampshire

164,994 5 6

to merge with

City Savings Bank of Laconia, New Hampshire

Laconia

14,093 1

Summary report by A ttorney General, August 19, 1974

New Hampshire Savings Bank is the dominant financial institution in Merrimack County. It holds approximately 51 percent of savings and time deposits 

in county offices of th rift institutions (savings banks and savings and loan 

associations) and 45 percent of such deposits in county offices of th rift institutions and commercial banks.

Merrimack County is immediately south of Belknap County, where City 

Savings Bank operates its sole office in Laconia. City Savings Bank holds 

approximately 10 percent of savings and time deposits in Belknap County 

offices of th rift institutions and 9 percent of such deposits in offices o f th rift 

institutions and commercial banks. Although New Hampshire Savings' offices 

are 25 miles or more south of City Savings, New Hampshire Savings derives 

some deposits and mortgages in the Laconia area and Belknap County. A lthough the proposed transaction would eliminate some existing com petition, it 

does not appear that concentration would be substantially increased in any 

relevant market.

Therefore, we conclude that the proposed transaction would not have a 

substantial competitive impact.

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 43

Basis fo r Corporation approval, February 11, 1975

New Hampshire Savings Bank, Concord, New Hampshire ("N H S B "), an 

insured mutual savings bank w ith total resources of $164,994,000 and total 

deposits of $147,002,000, 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 City Savings Bank of Laconia, New Hampshire, Laconia, 

New Hampshire ("C ity Savings"), an insured mutual savings bank w ith total 

resources of $14,093,000 and total deposits of $12,746,000. The tw o institutions would merge under the charter and title of NHSB. The two approved 

offices of C ity Savings would become branches of the resulting bank, increasing 

the number of its approved offices to seven.

Competition. NHSB operates a total o f five offices: its main office and tw o 

branches in Concord and one branch each in Pittsfield and Contoocook. A ll 

offices of NHSB are located in Merrimack County, in south central New Hampshire, and most of NHSB's deposit and loan business originates in that county.

C ity Savings has its sole office in Laconia (1970 population 14,888, down 

2.6 percent from 1960). It derives almost all o f its deposit and loan business 

from Belknap County (1970 population 32,367, up 12 percent from 1960), 

which is located adjacent to and northeast of Merrimack County. Laconia is 

the only city in the county, and 70 percent of the county's w ork force is 

employed there. The 1973 median household buying level fo r Belknap County 

was $9,709, slightly over the median fo r the State as a whole.

The nearest offices of NHSB and City Savings are 20 road-miles apart while 

their principal offices are 27 road-miles apart. The two banks serve different 

markets, there are no common depositors, and neither draws any meaningful 

volume of business from the county primarily served by the other. The proposed transaction therefore would not eliminate any significant existing competition between the two banks.

City Savings is the fourth largest of five th rift institutions competing in 

Belknap County and holds only 9.8 percent of their combined deposits. Since 

NHSB is not presently located in Belknap County, the structure of th rift 

institution com petition there would be changed only to the extent that com ­

peting institutions would be faced w ith a stronger, more aggressive com petitor.

Under present New Hampshire law, a bank may branch de novo w ithin the 

town of its principal office, in contiguous towns, and elsewhere w ithin 15 miles 

of its main office, subject to office protection; it may also merge w ith another 

bank w ithin 30 miles of its principal office. Thus, both banks are prohibited 

from entering the other's market w ith a de novo branch. As to alternative entry 

by merger, NHSB has selected the second smallest th rift institution in Belknap 

County, while realistically City Savings has few merger alternatives other than 

one of the more dominant th rift institutions already in Belknap County. The 

Board concludes that no potential for increased com petition between the two 

by means of de novo branching would be eliminated by their proposed merger, 

and that the merger alternative proposed is procompetitive locally rather than 

anticompetitive.

Statewide, NHSB would increase its share of th rift institution deposits to

7.5 percent from its present 6.9 percent, and it would move from the third 

largest th rift institution to the second largest. The largest such institution in 

the State would still have about $100 m illion more in total deposits than 

NHSB, while the third ranking th rift institution would be only $9 m illion 

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

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. The financial and 

managerial resources of NHSB and City Savings are satisfactory. The future 

prospects of City Savings are more favorable than if City Savings were to 

continue operation as an independent bank. The resulting bank has favorable 

prospects.

Convenience and Needs o f the Com m unity to be Served. Customers of City 

Savings would find a much broader range of services, including NOW accounts, 

automated payroll plans, FHA and V A loans and on-line computer capabilities, 

a much higher lending lim it, and a more vigorous competitive atmosphere as a 

result of the merger.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands

of dollars)

B an kin g Offices

I n

operation

T o be

operated

Hudson United Bank

Union City, New Jersey

191,961 11 12

to acquire the assets and assume

the deposit liabilities of

People's Trust Company

Dunellen

10,022 1

Summary report by A ttorney General, December 24, 1974

We have reviewed this proposed transaction and conclude that it would not 

have a substantial competitive impact.

Basis fo r Corporation approval, February 11, 1975 

Hudson United Bank, Union City, New Jersey ("H udson"), a State nonmember insured bank w ith total resources of $191,961,000 and total IPC 

deposits of $163,540,000, has applied, pursuant to section 18(c) and other 

provisions of the Federal Deposit Insurance Act, for the Corporation's prior 

consent to acquire the assets of and assume the liability to pay deposits made 

in People's Trust Company, Dunellen, New Jersey ("People's"), w ith total 

resources of $10,022,000 and IPC deposits of $8,089,000. The resultant bank 

would be operated under the charter and title of Hudson and, as an incident to 

the acquisition, the sole office o f People's would become a branch of Hudson 

which would then have a total of 11 authorized full service offices and 2 

limited service facilities.

Competition. Hudson operates six offices in Hudson County (population

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 45

609,266) and five offices in the southeastern portion of Bergen County (population 897,148). In Essex County (population 932,299) the bank has an 

approved but unopened branch. These three counties are in eastern New Jersey 

in close proxim ity to the Newark-New York City metropolitan area which is 

the major employment center in the area.

People's operates its sole office in Dunellen Borough (population 7,072) in 

Middlesex County (1970 population 583,813, up 34.6 percent from 433,856 

in 1960). Middlesex County is located in the north-central part of New Jersey 

and its 1973 household median income was about 8 percent higher than the 

comparable figure for the State as a whole.

The proposed acquisition would have no perceptible effect in any area 

presently served by Hudson. The impact of the proposed acquisition would be 

largely confined to the affluent, growing trade area of about 73,000 persons 

served by People's in and around Dunellen, which consists of the extreme 

north-central portion of Middlesex County and a small portion of south-central 

Somerset County as well as a small portion of western Union County.

In this trade area, 12 commercial banks operate 24 offices w ith total IPC 

deposits of $247,573,000. The largest share of this local market is held by the 

$143-million-deposit United National Bank, Plainfield, Union County, which 

has 47.7 percent of the IPC deposits. The $200-million-deposit First National 

Bank of Central Jersey, Somerville, has 8.5 percent of such IPC deposits while 

the $169-million-deposit The National Bank of New Jersey, New Brunswick, 

has 7.9 percent. People's nearest competitor, The First National Bank of 

Dunellen, controls 6.9 percent of these IPC deposits while People's itself has 

only 3.3 percent. The balance is shared by the remaining seven banks.

People's is the second smallest bank operating in the trade area and three of 

its competitors are affiliated w ith relatively large m ultibank holding companies. 

The proposed acquisition would not change the structure of this local banking 

market because Hudson is not now represented there. The resulting bank, 

however, should be in a better position to offer greater com petition to the 

larger banks in the area and to those banks w ith holding company affiliations.

Hudson and People's operate in separate and distinct banking markets. Their 

closest offices are about 20 miles apart in a densely populated urban and 

suburban area w ith numerous commercial bank alternatives. Neither, moreover, 

draws any significant business from areas served by the other. Accordingly, the 

Board is of the view that the proposed acquisition would not eliminate any 

significant existing com petition between Hudson and People's.

New Jersey law permits statewide branching, subject to certain restrictions 

relating to principal office protection. Hudson is prohibited from de novo

entry into Dunellen proper because of these restrictions, while People's (which 

has never branched since its founding in 1927) is unlikely to attem pt de novo

branching in areas now served by Hudson. Thus, the proposed acquisition 

would not eliminate any significant potential for increased competition between Hudson and People's through de novo branching.

Commercial banking in New Jersey is relatively unconcentrated at this time. 

The tw o largest commercial banking organizations, each a multibank holding 

company w ith total deposits in excess of $1.4 billion, have an aggregate of only

15.1 percent of the commercial bank deposits in the State. Hudson has 0.8 

percent of such deposits and the proposed acquisition would give the resulting 

bank only 0.9 percent of the State's commercial bank deposits.

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

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. The financial and 

managerial resources and future prospects for Hudson are considered adequate. 

Although People's possesses financial adequacy, management succession has 

become a problem and a declining deposit trend has become evident. The 

resulting bank w ill have adequate financial and managerial resources and the 

future outlook is favorable.

Convenience and Needs o f the Community to be Served. Customers of 

People's would benefit as recipients of services offered by Hudson but not now 

offered by People's, such as computer services, a wider variety of commercial, 

industrial, and instalment-type loans, and full trust services. In addition, instead of People's' effective lim it of $100,000 on individual loans, the resulting 

bank would have a statutory lending lim it of about $1,600,000. These services 

are presently available from other banks in the market served by People's, but 

the resulting bank would provide another meaningful alternative fo r a broad 

range of commercial banking services.

. Based on the foregoing inform ation, the Board of Directors has concluded 

that approval of the application is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

I n

operation

T o be

operated

The Peoples Bank 41,373 2 3

Portland, Indiana

to merge with

Union State Bank 5,630 1

Redkey

Summary report by A ttorney General, December 16, 1974

Peoples Bank is the largest of the five banks serving Jay County, and of the 

three banks located in Portland, the county seat. Union Bank is the county's 

smallest bank. The parties are separated by a distance of about 11 miles, and 

no other banks are located in the area directly between Portland and Redkey.

The application indicates that in 1973 an urgent need for capital arose at 

Union Bank. A t that time individuals controlling 59 percent of the stock of 

Peoples Bank acquired approximately 69 percent of the stock of Union Bank. 

Significant com petition probably does not now exist between the two banks, 

in part due to the 1973 stock transactions.

In view of the proxim ity of the merging banks, it appears that the overall 

stock purchase-merger transaction described in the application w ill eliminate 

Digitized 

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 47

Basis fo r Corporation approval, March 7, 1975

The Peoples Bank, Portland, Indiana (“ Peoples Bank"), an insured State 

nonmember bank w ith total resources of $41,373,000 and total IPC deposits 

of $31,727,000, 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 Union State Bank, Redkey, Indiana (“ Union Bank"), an insured 

State nonmember bank w ith total resources of $5,630,000 and total IPC 

deposits of $4,189,000. The tw o banks would merge under the charter and 

title of Peoples Bank and, as an incident to the merger, the only office of 

Union Bank would become a branch of the resulting bank, increasing the 

number of its offices to three.

Competition, Peoples Bank has its main office and one branch in downtown 

Portland (population 7,115), the largest city in Jay County (population 

23,575). Its primary service area is all of Jay County and portions of each 

county to the north and south. Union Bank operates its sole office in Redkey 

(population 1,667), approximately 11 miles southwest of Portland, in the 

southwestern corner of Jay County. The economy of Jay County is prim arily 

agricultural w ith some light industry in Portland, Redkey, and D unkirk. Many 

residents of the Redkey area commute to Muncie, 17 miles southwest of Redkey in Delaware County, for employment and shopping conveniences. Jay 

County's buying level for 1974 ($10,442) was 16.8 percent below the State 

level ($12,555), while Delaware County's buying level ($13,479) was 7.4 percent above the State level. Muncie is a city of approximately 69,000 persons, 

while Delaware County has a population close to 130,000 persons.

The area primarily served by Union Bank is the southwestern portion of Jay 

County, northern portions of Randolph County to the south, and the northeastern portion of Delaware County extended to include the city of Muncie. 

Nine banks, including 5 in Jay County, 3 in Delaware County, and 1 in Randolph County, operate 15 banking offices in this geographic area. Peoples Bank 

holds 12.5 percent of the area's commercial bank IPC deposits and ranks 

fourth in share of deposits, while Union Bank has 1.7 percent of such deposits 

and ranks ninth. In addition to competing Jay County banks, there are two 

branches of Delaware County banks located only 6 miles southwest of Redkey 

that actively compete in Union Bank's local market. The two banks are geographically only 11 miles apart, and no other bank is located between them. 

Accordingly, it would appear, and the application confirms, that the proposed 

merger would eliminate some existing com petition between the participating 

banks. However, the degree of com petition is lim ited* and the proposed merger would have little significance in view of the size of Union Bank relative to 

its competitors, its ineffectiveness as a com petitor in the period preceding the 

1973 purchase of its stock, and the fact that a sufficient number of convenient 

alternatives in this relatively small market would remain even if the proposed 

merger is consummated.

* F o r purposes o f this analysis, the C orporation has ignored the fa ct th a t U nion Bank was 

brough t under com m on co n tro l w ith Peoples Bank in 1973 through stock purchase by 

fo u r shareholders o f Peoples Bank. Absent unusual circum stances, such stock purchase 

lends no persuasive w eight to approval o f a proposed merger. As the C orporation has 

previously noted, to ad opt the argum ent th a t the banks do no t com pete because o f the 

com m on stock ow nership w ould in m any cases defeat the basic purposes o f the Bank 

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

Indiana law limits branching to the county in which a bank is headquartered, subject to home office protection. Increased competition between the 

two banks because of de novo branching by one or the other is, however, 

unlikely. In 1973, Union Bank had limited financial resources and no branching experience. Redkey is protected from outside branching by Union Bank's 

home office location, but even w ithout it the Redkey area would appear relatively undesirable for de novo branching compared w ith other sites available in 

Jay County to the banks in Portland.

While the proposed merger would add to the dominant share of commercial 

bank deposits held by Peoples Bank in all of Jay County, its legal branching 

area, Union Bank was not a significant com petitor at the time stock control 

was purchased in 1973, and its elimination as a separate com petitor in Jay 

County would appear inconsequential as a competitive matter.

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 financial and 

managerial resources of Peoples Bank and Union Bank are satisfactory. Under 

the present common ownership the banks could continue to operate satisfactorily as independent banks. The resulting bank would have favorable future 

prospects.

Convenience and Needs o f the Community to be Served. The resulting bank 

would have a much higher lending lim it than- Union Bank and would compete 

for mortgage loans and farm loans, an area of lending which Union Bank has 

not serviced in the past. Trust services, safe deposit boxes, a night depository, a 

drive-up window, and other conveniences will be added to the Redkey office 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

I n

operation

T o be

operated

Union Bank & Trust Company

Morganfield, Kentucky

15,609 2 3

to merge with

The Farmers Bank of Uniontown

Uniontown

2,426 1

Summary report by A ttorney General, October 7, 1974 

The offices of the parties are separated by a distance of about 6 miles, w ith 

no competitive alternatives in the intervening area. Thus, it appears that the 

proposed merger would eliminate existing competition between the parties and 

increase concentration in commercial banking in Union County.

Basis for Corporation approval, March 7, 1975

Union Bank & Trust Company, Morganfield, Kentucky (“ U nion"), a State 

Digitized for FRASER 

nonmember insured bank having total resources of $15,609,000 and total IPC

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 49

deposits of $11,672,000, 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 Farmers Bank of Uniontown, Uniontown, Kentucky ("Farm ers"), having total resources of $2,426,000 and total IPC deposits 

of $2,072,000. As an incident to the proposed transaction, the sole office of 

Farmers would be established as a branch of Union, increasing the number of 

its offices to three.

Competition. Union operates its main office and only branch in Morganfield 

(population 3,563), the county seat and largest com m unity of Union County, 

in northwest Kentucky some 35 miles southwest of Evansville, Indiana. 

Farmers has its sole office in Uniontown (population 1,255), in Union County, 

7 miles north of Morganfield, on the Ohio River.

Union County (population 15,882) lies just east of the Ohio River, which 

separates it from Indiana to the north and Illinois to the west. The economy of 

the county depends principally on agriculture and coal mining. A significant 

number of its inhabitants are employed in the Evansville, Indiana-Kentucky 

SMSA, which lies immediately to the northeast. The population of Union 

County increased 9.3 percent during the 1960s, the increase occurring solely in 

that portion of the county lying east of Morganfield adjacent to the SMSA. 

The population of Morganfield, meanwhile, declined 4.8 percent while that of 

Uniontown was unchanged. The 1973 median household effective buying level 

of the county ($7,484) lagged that of the State as a whole by 5.3 percent.

The proposed merger would have its most immediate and direct competitive 

impact w ithin Union County, where four commercial banks operate a total of 

eight offices. Union holds the third largest share, 26.7 percent, of the IPC 

deposits held by these offices; Farmers holds the smallest share, 4.8 percent, 

drawing virtually all of its business from Uniontown and its vicinity. In addition to the Ohio River on the north, this com m unity is surrounded on the east 

and northeast by sparsely populated marshlands. The principal road leads 

southward to Morganfield and beyond. Union derives a significant amount of 

its deposits and loans from the Uniontown area and thus, its trade area overlaps 

that of Farmers.

Although the proposed merger would eliminate existing com petition between Union and Farmers and increase concentration levels w ithin the county, 

these consequences of the merger have limited significance in view o f the small 

size of the relevant market in terms of population and deposit potential and 

the presence of two other significant competitors. Morganfield National Bank 

holds the largest share of the county's IPC deposits, operates tw o offices in 

Morganfield and one office in Waverly, 10 miles southeast of Uniontown, and 

has supervisory approval to establish a Uniontown office when, as a result of 

the proposed merger, home office protection has been removed from that 

comm unity. Farmers State Bank located in Sturgis, 10 miles south of Morganfield, w ith 27.9 percent of the county's IPC deposits, would also remain an 

effective com petitor in the county.

Although the merger would reduce to three the number of commercial banks 

in Union County, the effectiveness of Farmers as a com petitor appears to be 

limited. This bank has attained a deposit size of only $2.2 m illion after 72 

years of operation and maintains a loan account of comparatively modest size. 

Further, both of the other merger partners legally available to Farmers are

Digitized for FRASER 

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

larger than Union, and a merger w ith either would result in a higher concentration of Union County's commercial bank IPC deposits than the resulting 

bank's 31.5 percent of such deposits.

There appears to be only minimal potential fo r increased competition between the two banks through their de novo branching in the future. Kentucky 

law limits de novo branching by a commercial bank to its headquarters county, 

subject to home office protection. Thus, Union may not legally establish a de

novo branch in Uniontown, nor may Farmers branch directly into Morganfield. 

Three of the four incorporated areas o f Union County have home office protection and the fourth, w ith a population of only 335, is served by a branch of 

the county's largest bank. While areas beyond city limits are open fo r branching to all four of the county's banks, little such expansion can be expected in 

the foreseeable future. The county presently has one commercial bank office 

for each 1,985 inhabitants, its population declined during the 1960s in all areas 

other than the extreme eastern section, and its income levels are below the 

statewide average. Farmers has operated as a unit bank fo r 72 years and has 

neither managerial nor financial resources to facilitate de novo expansion. 

Union, were it to establish de novo branches, would be likely to favor the 

expanding portion of the county to the east of Morganfield rather than the 

Uniontown area to the north.

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. Each of these factors 

is favorable for Union (as they would be fo r the resulting bank) and marginally 

adequate for Farmers.

Convenience and Needs o f the Community to be Served. The proposed 

merger would have littie effect in Union County generally, other than providing the resulting bank w ith a modest increase in lending lim it. In the Uniontown area, however, a more aggressive management would offer a broader 

range of credit plans w ith a substantially increased loan lim it, and trust facilities would become locally available for the first time. Newly constructed 

banking premises, planned for the Farmers location, should contribute to the 

convenience of customers in the Uniontown market in the near future.

Based upon the foregoing, the Board of Directors has concluded that 

approval of the application is warranted.

Resources

i in

Banking Offices

\ in

thousands

of dollars)

In

operation

T o be

operated

Depositors Trust Company of Portland

Portland, Maine

7,275 1 4

to purchase the assets and assume

the deposit liabilities of

South Portland Bank & Trust Company

South Portland

6,030 3

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 51

Summary report by A ttorney General, November 20, 1974

Portland Bank is a subsidiary of Depositors C o rp o ra tio n s m ultibank holding company currently operating 6 commercial banking subsidiaries w ith 54 

offices in the State of Maine. Although Depositors Corporation is currently the 

second largest of the banking organizations in the State of Maine w ith about

16.5 percent of total State deposits, its subsidiaries are largely concentrated to 

the north of Portland and surrounding Cumberland County. Depositors Corporation presently controls tw o banking offices in the Portland area: Portland 

Bank's main office in the city of Portland and a branch office of Depositors 

Trust Company, also a Depositors Corporation subsidiary, located in Freeport, 

about 15 miles north of Portland.

Portland and South Portland are adjacent cities separated by Portland 

Harbor and the Fore River. The nearest offices of the parties are separated by a 

distance of about 2 miles and their main offices are less than 3 miles apart. 

Thus, it appears that the proposed transaction would eliminate some existing 

competition between the parties in the Portland-South Portland area. However, 

it does not appear that concentration in commercial banking would be substantially increased in any relevant geographic market.

Basis fo r Corporation approval, March 7, 1975

Depositors Trust Company of Portland, Portland, Maine ("DepositorsPortland"), a State nonmember insured bank w ith total resources of 

$7,275,000 and total IPC deposits of $5,369,000, 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 the liability to pay deposits made in South Portland Bank & Trust Company, South 

Portland, Maine ("South Portland Bank"), w ith total resources of $6,030,000 

and total IPC deposits of $4,139,000. The head office and two branches of 

South Portland Bank would become branches of Depositors-Portland, increasing the number of its approved offices to five.

Competition. Depositors-Portland, established in 1972, operates a single 

office in Portland (1970 population 65,116, down 10.3 percent from 1960). 

An approved but unopened branch is to be located 1/2 mile southeast of the 

head office. Depositors-Portland is the smallest of the six subsidiaries of Depositors Corporation, Augusta, Maine. This holding company, controlling total 

deposits of $272.8 m illion, is the State's second largest commercial banking 

organization.

South Portland Bank, established in 1971, operates a head office and two 

branches, all w ithin a radius of 5 miles, in South Portland (1970 population 

23,267, up 2.1 percent from 1960). Portland and South Portland, although 

adjacent, are separated for the most part by the Fore River and Portland 

Harbor. However, access to both cities is readily available. These are the core 

cities of the Portland, Maine SMSA (1970 population 141,625, up 14.3 percent 

from 1960). The SMSA is one of the principal distribution centers in northern 

New England. D istribution, services, and manufacturing, along w ith deep-river 

port facilities, provide a diversified economic base. The 1973 median buying 

levels of Portland ($9,012) and the Portland metropolitan area ($9,560) compare favorably w ith the State's level of $8,598.

While South Portland Bank does, to some extent, draw business from most 

of the SMSA, its primary market area comprises Portland and South Portland

Digitized for FRASER 

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

cities and Cape Elizabeth and Scarborough towns. The population of this 

market area was 104,101 in 1970, a decrease of 3.0 percent from 1960. Only 

Portland lost population during the decade, however, in the typical movement 

of inhabitants from the inner city to the suburbs. In this market, 6 commercial 

banks operate a total of 38 offices and hold IPC deposits aggregating 

$233,012,000. Three Portland-based banks are dominant in this area, operating 

33 offices and holding 95.7 percent of the area's commercial bank IPC deposits. These banks are representatives of the first, fourth, and sixth largest 

commercial banking organizations in the State. The resultant bank would hold 

only 4.1 percent of such deposits (Depositors-Portland presently has 2.3 percent and South Portland Bank 1.8 percent).

While the nearest offices of Depositors-Portland and South Portland Bank 

are some 2.5 miles apart (the approved but unopened branch of DepositorsPortland is to be located about 2 miles from the main office of South Portland 

Bank) and are separated by an arm of Portland Harbor w ith several offices of 

competing banks intervening, the tw o banks draw business from essentially the 

same area. South Portland Bank in particular has been an aggressive com petitor 

during its 5 years of existence. While the proposed transaction would eliminate 

this existing competiton between the tw o banks, the longer-run impact is likely 

to be negligible in view of the modest size of both banks in the relevant market 

and the presence therein of three banks w ith much larger shares of the total 

commercial bank IPC deposits. The Portland SMSA, moreover, is growing 

despite the population declines registered in its central portion, and new com ­

petitors, some of whom w ill undoubtedly have the backing of statewide bank 

holding companies, should continue to be attracted to the market.

Both banks may, under present law, branch de novo into the same area. 

South Portland Bank has established two such branches since it opened for 

business in 1971 (one of the branches is a limited service drive-in facility). Its 

further de novo activity is not regarded as likely due to limited managerial and 

financial resources. Depositors-Portland, w ith the backing of its holding company, is expected to be active in de novo branching. The proposed transaction 

would give a small but significant network of offices in the Portland area, w ith 

correspondingly greater incentive to compete as vigorously as possible w ithin 

the market. A ny elimination of potential com petition between the two banks 

caused by the proposed transaction is outweighed by this prospect of more 

intensive and effective com petition w ith the area's three leading banks.

Depositors Corporation presently controls 15.2 percent of the State's total 

commercial bank deposits. If the proposed transaction is consummated, the 

percentage of such deposits would increase to 15.5 percent, w ith Depositors 

Corporation maintaining its rank as the second largest of Maine's commerciai 

banking organizations. The six largest such organizations hold 80.2 percent of 

the State's total commercial bank deposits. While the proposed purchase and 

assumption transaction would eliminate an independent bank and further concentrate the banking resources of the State, it would, more im portantly, provide an additional toe-hold in the Portland-South Portland market for Depositors Corporation. Presently the only representation of Depositors Corporation in the Portland, Maine SMSA is the Freeport Branch (IPC deposits 

$3,958,000) of Depositors Trust Company (Augusta). This branch lies approximately 20 miles northeast of Depositors-Portland and is the closest office of 

any of the affiliated banks.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 53

Under these circumstances, the Board of Directors is of the opinion that the 

proposed purchase and assumption transaction would not, in any section of the 

country, substantially lessen com petition, tend to create a monopoly, or in any 

other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. The resuitant bank 

would have adequate financial and managerial resources. Its future prospects 

would be satisfactory.

Convenience and Needs o f the Community to be Served. While no new 

services w orthy of note w ill be developed by the proposal, the general public in 

the Portland-South Portland 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.

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

T o be

operated

The Suncook Bank

Suncook, New Hampshire

24,722 1 2

to merge with

The Hooksett Bank

Hooksett

2,851 1

Summary report by A ttorney General, December 9, 1974

The merging banks are located about 7 miles apart w ith no other banks in 

the area directly between them. The application indicates that the service area 

of Hooksett Bank is w holly w ithin that of Suncook Bank. The banks' service 

areas, however, are situated about midway between Concord (8 miles north of 

Suncook) and Manchester ( 5 miles south of Hooksett) and they compete w ith 

other banks in those banking markets. Suncook Bank accounts for approximately 7 percent and Hooksett Bank less than 1 percent of the commercial 

bank deposits in the Concord and Manchester areas. Moreover, the small size 

and market position of Hooksett Bank mitigate any competitive effects of the 

proposed transaction.

Basis for Corporation approval, March 7, 1975

The Suncook Bank, Suncook, New Hampshire, a State nonmember insured 

bank having total resources of $24,722,000 and IPC deposits of $20,710,000, 

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 Hooksett Bank, Hooksett, New Hampshire, w ith 

total resources of $2,851,000 and IPC deposits of $2,121,000. As an incident 

to the merger, the sole office of The Hooksett Bank would be established as a 

branch of The Suncook Bank, increasing to tw o the number of its offices.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

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

Competition. The Suncook Bank operates its sole office in Suncook (population 4,280), an unincorporated com m unity comprising parts of the Merrimack County towns o f Pembroke and Allenstown, in south-central New 

Hampshire. Its primary trade area comprises the city of Manchester, 10 miles 

to the south of Suncook, the southern half of the city of Concord, 8 miles to 

the northwest, the towns of Allenstown, Hooksett, and Pembroke, which form 

a corridor between the two cities, and the towns of Epsom, Northwood, and 

Pittsfield, situated to the northeast of the corridor. Manchester (population 

87,754) is the State's largest city and a trading and industrial center. Concord 

(population 30,022) is New Hampshire's capitol and third largest city. Suburban portions of The Suncook Bank's market are prim arily residential, w ith 

many residents being employed in Manchester or Concord.

The Hooksett Bank has its sole office in the town of Hooksett (population 

5,564), situated 3 miles north of Manchester and 7 miles south of Suncook. 

The Hooksett Bank draws the bulk of its business from Hooksett and the 

northern fringes of Manchester, an area also served by The Suncook Bank. 

However, The Suncook Bank has stock control of The Hooksett Bank, which it 

sponsored and established during 1972 in a com m unity into which it could not 

legally branch de novo, and the two banks have interlocking managements. 

Thus, there is no effective com petition between them.

W ithin the local market served by the 2 banks, 21 offices are operated by 11 

commercial banks, and these offices hold $302 m illion in aggregate IPC deposits. The Manchester Bank holds 41.1 percent of such deposits. Two subsidiary banks of First Bancorp of N. H., Inc., hold 19.3 percent, while the two 

next largest shares, 10.8 percent and 9.7 percent, are held by two other 

Manchester-based banks. The Suncook Bank and The Hooksett Bank together 

control 7.6 percent of such deposits. Accordingly, the proposed merger would 

not change the existing competitive structure of the market. Furthermore, 

their proposed merger is unlikely to affect to any significant extent future 

competition w ithin the same market. The law that in 1972 prevented The 

Suncook Bank from branching into Hooksett de novo continues in effect. The 

town of Suncook, in turn, cannot be entered de novo by any commercial bank 

as long as The Suncook Bank maintains its principal office there. To the 

extent other locations might prove desirable fo r de novo branching w ithin the 

market, numerous competitors remain to insure effective com petition and the 

small share of the market presently controlled by The Suncook Bank and The 

Hooksett Bank indicates no significant elimination of potential com petition 

through their proposed merger even in the unlikely event disaffiliation were to 

occur.

Under the circumstances presented, the Board of Directors is of the opinion 

that the proposed merger would not, in any section of the country, substantially lessen com petition, tend to create a monopoly, or in any other manner 

be in restraint of trade.

Financial and Managerial Resources; Future Prospects. The Suncook Bank 

has satisfactory financial resources, and those of The Hooksett Bank are adequate. The resulting bank would have adequate financial and managerial resources and its future prospects appear reasonably favorable.

Convenience and Needs o f the Community to be Served. The Suncook Bank 

presently competes throughout the primary trade area of The Hooksett Bank 

and the merger would provide no new services to the com m unity other than

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 55

trust services, which would be offered for the first time at The Hooksett Bank 

location. A lending lim it increased to $250,000 should strengthen somewhat 

the competitive stance of the resulting bank in the relevant market.

Based on the foregoing, the Board of Directors is of the opinion that 

approval of the application is warranted.

Resources

/In

Banking Offices

v in

thousands

of dollars)

I n

operation

T o be

operated

Bank of Virginia-Shenandoah

Winchester, Virginia 

(in organization)

1

to merge with

Virginia Loan and T h rift Corporation

Winchester

2,199 1

Summary report by A ttorney General, September 13, 1974

The proposed merger is part of a plan through which Virginia Loan and 

T h rift Bank would become a subsidiary o f Bank of Virginia Company, a bank 

holding company. The instant merger, however, would merely combine an 

existing bank w ith a nonoperating institution; as such, and w ithout regard to 

the acquisition of the surviving bank by Bank of Virginia Company, it would 

have no effect on com petition.

Basis fo r Corporation approval, March 7, 1975

Pursuant to sections 5 and 18(c) and other provisions of the Federal Deposit 

Insurance Act, applications have been filed for Federal deposit insurance for 

Bank of Virginia-Shenandoah, Winchester, Virginia ("B O V A "), a proposed new 

bank in organization, and for consent to its merger w ith Virginia Loan and 

T h rift Corporation, Winchester, Virginia ("V L T C "), a noninsured industrial 

loan association w ith total resources of $2,199,000 as of October 10, 1974, 

upon the latter's conversion to a commercial bank charter. The merger would 

be effected under the charter and w ith the title of BOVA, and the resulting 

bank would operate from the single location of VLTC.

The new bank form ation and merger transaction are designed solely to 

enable Bank of Virginia Company, Richmond, Virginia, a registered bank holding company, to acquire substantially all of the voting shares of the bank 

resulting from the proposed merger. An application fo r approval o f the acquisition is pending before the Board of Governors of the Federal Reserve System. 

BOVA will not be in operation as a commercial bank prior to the transaction, 

and the proposed merger w ill not, per se, have any effect on competition.

With respect to the application fo r Federal deposit insurance, the net result 

of the proposals w ill be to convert a limited service industrial loan association 

to a commercial bank. The trade area for the bank is Winchester, an independent city w ith a 1970 population of 14,643, and its immediate environs in

Digitized for FRASER 

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

surrounding Frederick County. The county had a 1970 population of 28,893. 

The Winchester area is prim arily commercial and residential w ith a small but 

significant agricultural sector, and growth prospects are favorable.

The trade area is served by 3 commercial banks (all of which are affiliates of 

other bank holding companies) which will comprise the com petition for BOVA 

through their 17 offices. The total deposits of these banks in the aggregate 

approximated $162 m illion as of June 30, 1974. The conversion of this industrial loan association, w ith total deposits of only $1.3 m illion, should have no 

appreciable effect on the competitive situation, but its acquisition by BOVA 

should help to stimulate com petition in the Winchester market. VLTC has been 

in operation fo r over 48 years and has served the needs and convenience of the 

com m unity during that period. The granting of deposit insurance w ill be beneficial to the converted bank's present customers and to the banking com m unity 

in general.

On the basis of the above inform ation and other inform ation available to 

the Corporation, the Board of Directors has concluded that approval of the 

application is warranted.

Resources

(i n

Banking Offices

thousands

of dollars)

I n

operation

T o be

operated

Bank o f Somerset

Princess Anne, Maryland

30,184 4 6

to merge w ith

Exchange and Savings Bank of Berlin

Berlin

9,150 2

Summary report by A ttorney General, November 5, 1974 

The nearest offices of the merging banks are approximately 23 miles apart 

w ith several competitive alternatives in the intervening area. It appears that the 

proposed transaction would not eliminate substantial existing competition. 

And in view of Exchange Bank's modest market position in its service area, and 

the existence of several potential entrants into that area, we conclude that the 

proposed merger would not eliminate substantial potential competition.

Basis for Corporation approval, March 25, 1975

Bank of Somerset, Princess Anne, Maryland, a State nonmember insured 

bank w ith total resources of $30,184,000 and total IPC deposits of 

$22,928,000, 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 Exchange and Savings Bank of Berlin, Berlin, Maryland ("Exchange 

Bank"), w ith total resources of $9,150,000 and total IPC deposits of 

$7,461,000. These banks would merge under the charter and w ith the title of 

Bank of Somerset and, as an incident to the merger, the two offices of Exchange Bank would be established as branches of the resulting bank, increasing 

the number of its offices to six.

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 57

Competition. Bank of Somerset is a subsidiary of Mercantile Bankshares 

Corporation, the sixth largest commercial banking organization in Maryland, 

controlling 11 banks having total IPC deposits of $530,225,000, or approximately 7.7 percent o f all commercial bank IPC deposits in the State. Bank of 

Somerset has four offices: the main office and two branches in Somerset 

County and one branch in Wicomico County.

Exchange Bank operates its main office in Berlin (population 1,942) and a 

branch opened in June 1974 in Ocean City (population 1,493), 9 miles east of 

Berlin. Both offices are in northeastern Worcester County (1970 population 

24,442, up 3.0 percent since 1960). Worcester County's 1974 median household buying level was $8,243, 38.8 percent below the statewide level. Exchange Bank is the 83rd largest commercial bank in Maryland, holding 0.1 

percent of the State's commercial bank IPC deposits.

Competitive effects of the proposed merger would be most direct and 

immediate in the trade area of Exchange Bank, which comprises communities 

in northern Worcester County and adjacent eastern Wicomico County w ithin 

15 road-miles of Berlin. A total of 10 banks operate 15 offices in the market, 

serving a year-round population estimated at 18,000, but a much larger 

summertime population. Exchange Bank is the third largest among the 10 

banks in this market, w ith 9.2 percent of all IPC deposits held by the area's 

commercial bank offices. The bank w ith the largest area share of such deposits 

is four times the deposit size of Exchange Bank, while the second, fourth, fifth , 

and sixth largest area shares are close to Exchange Bank's share. A distance of 

23 road-miles separates the closest offices of the tw o banks while offices of 

several other commercial banks serve the intervening area. There is no appreciable overlapping of trade areas, and the proposal would eliminate no significant existing com petition between Bank o f Somerset and Exchange Bank.

Should the proposed merger not be consummated, there appears to be no 

significant potential fo r increased com petition between the tw o banks through 

de novo branching in the future. Although it may legally establish de novo

branches in the area served by Exchange Bank and although it has the financial 

and managerial capacity to do so, Bank of Somerset is unlikely to find this 

market attractive in view of its substantially below average buying level and the 

large number of banking offices serving a relatively small year-round population. Exchange Bank, fo r its part, has only recently opened its first branch 

since it was chartered in 1899, and does not have the financial or managerial 

resources for significant additional expansion.

A t the same time, consummation o f the proposed merger would not inhibit 

the entry of several larger statewide bank holding companies presently unrepresented in the market or effective com petition w ithin the market in the future.

Statewide, the proposed merger would increase from only 7.7 percent to 7.8 

percent the share of aggregate commercial bank IPC deposits held by Mercantile Bankshares Corporation. This increment would have no perceptible effect 

on the concentration of commercial bank resources in the State of Maryland, 

while com petition in the local market in which Exchange Bank operates should 

be enhanced.

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.

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

Financial and Managerial Resources; Future Prospects. Bank of Somerset 

has satisfactory financial and managerial resources; those of Exchange Bank are 

acceptable for the volume of business being conducted. The resulting bank 

would have satisfactory financial and managerial resources and its future 

prospects appear favorable.

Convenience and Needs o f the Com m unity to be Served. The merger would 

have little effect in the present market of Bank of Somerset other than providing a credit card service which is now available to customers of Exchange 

Bank. The merger would bring to the Berlin-Ocean City market another source 

for large size loans, improved commercial and consumer lending services, a 

broader range of deposit alternatives, daily compounding of savings interest, 

and a more competitive time deposit rate. A third banking organization among 

the 10 largest in Maryland would, by the merger, join 2 others already in the 

market of Exchange Bank, and com petition should be enhanced to the benefit 

of businessmen and residents alike.

Based on the foregoing inform ation, the Board of Directors has concluded 

that approval of the application is warranted.

Resources

( in

Banking Offices

un

thousands

of dollars)

I n

operation

To be

operated

Dry Dock Savings Bank

New York, New York

1,447,175 7 8

to acquire the assets and assume

the deposit liabilities of

F ifth Avenue Savings and Loan Association

New York

2,267 1

Approved under emergency provisions. No report requested from the 

A ttorney General.

Basis fo r Corporation approval, April 7, 1975

Dry Dock Savings Bank, New York, New York, an insured mutual savings 

bank w ith total resources of $1,447,175,000 as of December 31, 1974, 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 the liability 

to pay deposits made in Fifth Avenue Savings and Loan Association, New 

York, New York, a noninsured State-chartered mutual savings and loan association w ith total resources of $2,267,259 as of January 17, 1975. As an incident 

to the proposed transaction, the sole office of Fifth Avenue Savings and Loan 

Association would become a branch of Dry Dock Savings Bank.

The Board of Directors has determined that the Corporation must act 

immediately in order to prevent the probable failure of Fifth Avenue Savings 

and Loan Association.

Based on this finding the proposed transaction is approved. Under section 

18(c)(6) of the Federal Deposit Insurance Act, the transaction may be conDigitized 

summated immediately.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 59

Resources

(in

thousands

of dollars)

Banking Offices

I n

operation

To be

operated

Houghton State Bank

Red Oak, Iowa

31,393 3 4

to acquire the assets and assume

the deposit liabilities of

The Cumberland Savings Bank

Cumberland

4,190 1

SQmmary report by A ttorney General, November 20, 1974

Bank is located about 30 miles northeast of Applicant's branch office in 

E lliott and about 38 miles northeast of the latter's main office in Red Oak. It 

appears that the proposed transaction would not eliminate significant existing 

competition between the parties. And in view of the modest size of Bank and 

of the com m unity which it serves (Cumberland's population is approximately 

425), we conclude that the effect of the proposed transaction on potential 

competition would not be significantly adverse.

Basis for Corporation approval, April 11, 1975

Houghton State Bank, Red Oak, Iowa, an insured State nonmember bank 

with total assets of $31,393,000 and IPC deposits of $25,537,000, has applied, 

pursuant to section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to acquire the assets of and 

assume the liability to pay deposits made in The Cumberland Savings Bank, 

Cumberland, Iowa ("C SB"), an insured State nonmember bank w ith total 

assets of $4,190,000 and IPC deposits of $3,498,000. As an incident to the 

transaction, the sole office of CSB would become a branch of the resulting 

bank, increasing the total number of its offices to four.

Competition. Houghton State Bank operates its main office and one branch 

in Red Oak (1970 population 6,210) and one branch in E llio tt (1970 population 423), about 14 miles northeast of Red Oak. Both locations are in M ontgomery County (1970 population 12,781, down 11.7 percent from 1960) 

which is in southwestern Iowa. Red Oak, which is about 50 miles southeast of 

Omaha, Nebraska, and Council Bluffs, Iowa, is the trading center for a rich 

agricultural area, but it also has considerable industrial development. M ontgomery County's 1973 median buying level was $8,567, some 9.8 percent 

below that for the State. Houghton State Bank is an affiliate of Hawkeye 

Bancorporation, Des Moines, Iowa, a registered bank holding company controlling 14 banks w ith total deposits of over $341 m illion.

CSB operates its only office in Cumberland (1970 population 385) in central Cass County (1970 population 1 7,007, down 5.1 percent from 1960). Cass 

County adjoins Montgomery County on the north and is almost solely agricultural. Its 1973 median buying level was $8,149, or 14.2 percent below the 

State figure of $9,499.

The effects of the proposed transaction would be fe lt prim arily w ithin 

about 15 miles of Cumberland. CSB is the smallest of the seven commercial 

banks in this area, w ith only 4.6 percent of the aggregate IPC deposits of $75.7 

million. Because Houghton State Bank is not represented in this market, the 

proposed transaction would have no effect on the structure of commercial 

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banking in this small local market.

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

Houghton State Bank and CSB presently operate in adjoining but separate 

banking markets. The closest office of Houghton State Bank to Cumberland is 

its branch in E lliott, some 20 miles to the southwest of Cumberland, and there 

is another bank located between these points. Further, no Hawkeye Bancorporation affiliate is closer to Cumberland than Houghton State Bank. If there is 

any overlapping of areas served, the result would be inconsequential. The 

proposed transaction, therefore, is viewed as unlikely to eliminate any significant existing com petition between the two banks.

Under Iowa law, a bank may branch de novo in its home office county and 

into contiguous counties subject to home office and branch office protection. 

CSB has neither the resources nor the management depth to attempt to expand 

into areas served by Houghton State Bank, and the latter probably would not 

find Cass County attractive for de novo branching because of its declining 

population, modest economic activity, and low population per banking office 

(2,834). As a result, no significant potential for increased com petition between 

the two banks in the future through de novo branching is likely to be elim inated by the proposed transaction.

In the 8 counties open to Houghton State Bank for branching, there are 42 

commercial banks operating 63 offices w ith aggregate total deposits of $564.5 

million. Houghton State Bank has 4.9 percent of these deposits, and the resulting bank would have 5.6 percent. Hawkeye Bancorporation, however, controls 

two other banks in this area w ith a combined deposit share of 7.9 percent. 

Thus, the holding company already has the largest share of such deposits w ith 

12.8 percent. This is only slightly more than the 12.3 percent share held by an 

affiliate of Banks of Iowa, Inc., Cedar Rapids, Iowa, a m ultibank holding 

company controlling five banks w ith total deposits in excess of $400 m illion. 

The acquisition of CSB would add only 0.7 percent to Hawkeye Bancorporation's deposit share in Houghton State Bank's legal branching area. On a statewide basis, Hawkeye Bancorporation is the third largest banking organization 

in Iowa, w ith 3.5 percent of total commercial bank deposits, and the proposed 

transaction would add less than one-half of 1 percent to that total.

Based on the foregoing, the Board of Directors is of the opinion that the 

proposed transaction would not, in any section of the country, substantially 

lessen com petition, tend to create a monopoly, or in any other manner be in 

restraint of trade.*

Financial and Managerial Resources; Future Prospects. Houghton State 

Bank and CSB have satisfactory financial and managerial resources and future 

prospects, as would the resulting bank.

Convenience and Needs o f the Community to be Served. The proposed 

transaction would not affect the services presently offered in the areas where 

Houghton State Bank now operates. Cumberland residents would benefit from 

having a branch of a holding company affiliate nearby which would offer 

expanded banking services, including computerized record keeping, credit card 

convenience, and trust services.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

* F o r purposes o f assessing the com petitive im pact o f this proposal under the Bank Merger 

A ct, the Board o f D irectors has ignored the acquisition of stock co n tro l of CSB by the 

president o f H oughton State Bank in July 1973.

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 61

Resources

(in

thousands

of dollars)

Banking Offices

I n

operation

T o be

operated

United Canal Bank

Bangor, Maine

to acquire certain assets and assume

the deposit liabilities of

1,188 1 1

Colonial Industrial Bank

Bangor

1,170 1

Summary report by A ttorney General, March 11,1975

United Bancorp operates no offices w ithin 50 miles of Bangor other than its 

de novo subsidiary, United Canal Bank, in Bangor. In view of the small size of 

Colonial, which is not a commercial bank, its acquisition by United Canal Bank 

would not have a substantially adverse effect on either existing or potential 

competition.

Basis for Corporation approval, April 11, 1975

United Canal Bank, Bangor, Maine (“ Canal"), a State nonmember insured 

bank w ith total resources of $1,188,000 and total deposits of $426,000 as of 

February 14, 1975, has applied, pursuant to section 18(c) of the Federal 

Deposit Insurance Act, for the Corporation's prior consent to acquire certain 

assets of and assume liability to pay deposits made in Colonial Industrial Bank, 

Bangor, Maine ("C olonial"), a noninsured State-chartered industrial bank w ith 

total resources of $1,170,100 and total deposits of $908,800 as of January 13, 

1975. The tw o banks have separate quarters in the same building, and if the 

transaction is consummated, the office of Colonial would be prom ptly closed.

Competition. Bangor (1970 population 33,168) is located in the eastern 

part of Maine, some 135 road-miles northeast of Portland. It is the wholesale 

and retail trade center for a large portion of northern and eastern Maine. 

Industries in the Bangor area manufacture footwear, paper, and textiles. During 

the 1960s the population of Bangor declined by 14.8 percent, in contrast to a 

statewide population increase of 2.4 percent, but this reflected the impact of 

the deactivation of Dow A ir Force Base (12,000 m ilitary and civilian personnel). This facility, now operated as Bangor International A irport, has become 

an im portant source of income for the area, offsetting in part the depressed 

conditions prevailing among the area's major industries. A modest improvement in the local economy has been reported during the past few years and 

further improvement is anticipated. Bangor's 1973 median household buying 

level ($8,477) was only slightly below that of the State as a whole.

Both Canal and Colonial are located w ithin the Bangor-Brewer banking 

market (comprising these adjacent cities together w ith nine surrounding 

communities, all w ithin some 15 road-miles of Bangor). Canal is a subsidiary of 

United Bancorp of Maine, whose nearest other subsidiary is 55 miles from 

Bangor. Colonial, which is uninsured, has only limited powers and cannot 

branch de novo. It is not considered a commercial bank or an effective com ­

petitor for deposits. In the 9 years since it was opened, Colonial has attained 

only about $1 m illion in deposits, constituting less than 1 percent of total 

deposits in the local market. It had an operating loss in 1973 and significant 

loan classifications at the last examination.

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

Six commercial banks operate a total of 24 offices in this market of some 

77,236 persons. This market is highly concentrated w ith three banks, all subsidiaries of bank holding companies, holding 97.2 percent of the IPC deposits 

as of June 30, 1974, and operating 84 percent of the banking offices. Canal has 

been open only since January 10, 1975, and has not yet attained even 

$500,000 in deposits. Together the tw o banks would hold only 1.2 percent of 

the total commercial bank deposits in the market. It is apparent that no significant existing com petition between these tw o banks would be eliminated by the 

proposed transaction and that no significant change would occur in the 

commercial bank structure of the market.

The four remaining industrial banks in Maine have been prohibited by a 

1967 law from establishing de novo branches, and thus, no potential exists fo r 

increased com petition between the two banks by such expansion in the future.

The Board of Directors is therefore 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. Colonial's financial 

resources and future prospects are unfavorable. Canal has capable officers, its 

resources are adequate, and its future prospects are favorable. The loan assets 

that Canal would acquire by the proposed transaction exclude those of unsatisfactory quality. With Canal's financial strength and managerial resources, the 

future prospects of the resulting bank are satisfactory.

Convenience and Needs o f the Community to be Served. The proposed 

purchase and assumption transaction would not materially affect the convenience and needs of the market being served. Depositors of Colonial would 

gain the assurance of Federal deposit insurance and Canal would gain a small 

deposit base from which to penetrate a highly concentrated market.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

I n

operation

To be

operated

Farmers and Mechanics Savings Bank

Middletown, Connecticut

98,186 4 5

to merge with

Cromwell Savings Bank

Cromwell

25,813 1

Summary report by A ttorney General, May 8, 1975

Cromwell Savings operates its main office in Cromwell (population 7,400) 

in Middlesex County (population 115,000) and has approval for a second 

office there. Farmers Savings operates two offices in Middletown (population 

29,300), immediately south of Cromwell and also in Middlesex County, and 

single offices in Colchester and Montville, about 20 miles east of Middletown.

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 63

In addition to the parties to this proposed merger, one savings and loan association and two commercial banks are located in Cromwell, and tw o savings 

banks, one savings and loan association, and four commercial banks operate in 

Middletown.

Farmers Savings' main office in Middletown and Cromwell Savings' headquarters in Cromwell are separated by a distance of only about 4-1/2 miles. 

Thus, it appears that the proposed merger would eliminate existing com petition between the parties. There are, however, a number of competitive alternatives w ithin a 10-mile radius of these adjacent communities. The proposed 

merger will nevertheless eliminate existing com petition and increase concentration in the Middletown-Cromwell area.

Accordingly, we conclude that the proposed transaction would have adverse 

competitive effects.

Basis for Corporation approval, May 9, 1975

Farmers and Mechanics Savings Bank, Middletown, Connecticut ("F arm ­

ers"), an insured mutual savings bank w ith total resources of $98,186,000 and 

total deposits of $89,300,000, 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 Cromwell Savings Bank, Cromwell, Connecticut 

("Cromwell Bank"), w ith total resources of $25,813,000 and total deposits of 

$23,808,000, under the charter and w ith the title of Farmers. The main office 

and the approved but unopened office of Cromwell Bank would become 

branches of the resulting bank, increasing the number of its approved offices to 

six.

Competition. Farmers has its main office and one branch in Middletown, 

Middlesex County, and tw o branches in New London County: one in Colchester, 20 road-miles east of M iddletown, and one in Montville, 36 road-miles 

southeast of Middletown. Cromwell Bank has one office in Cromwell, Middlesex County, and has approval to open a second office in a shopping center in 

Cromwell. The closest offices of the tw o banks are about 4 -1/2 miles apart.

The market area most affected by this proposal would be those portions of 

Middlesex, New Haven, and Hartford Counties that lie w ithin a 15-mile radius 

of Cromwell. The population of this trade area is approximately 300,000 and 

includes the southern part of the Hartford SMSA. Population increased during 

the decade ending in 1970 by 12.8 percent in New Haven County, 29.4 percent 

in Middlesex County, and 18.4 percent in Hartford County. The 1973 household median buying levels for the three counties all approximate the State 

median of $11,378. The economy of the immediate Cromwell area is rapidly 

changing from an agricultural orientation, w ith a nursery-greenhouse complex 

the major employer, to a largely residential area.

There are 61 offices of 15 mutual savings banks and 24 offices of 7 savings 

and loan associations, having total deposits of approximately $2.6 billion, in 

the relevant market area. Farmers has 2.8 percent of such deposits, ranking 

11th, and Cromwell Bank has 0.9 percent, ranking 19th. While the areas served 

by the two banks overlap to some extent, the proposed transaction would not 

eliminate any significant amount of competition. The amount of deposits each 

bank now holds in the other's area is small and the shares of the total market 

that the two banks hold are very low. There would continue to be an adequate 

number of other institutions in the area to provide the public w ith convenience 

and choice among th rift institutions.

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

Little probability exists fo r increased competition to develop between 

Farmers and Cromwell Bank in the future. Neither bank may branch into the 

other's home office com m unity because of the Connecticut home office protection statute. Furthermore, Cromwell Bank has shown little inclination to 

expand operations beyond its local com m unity, and it operated for over 100 

years before attempting to establish its first branch. Moreover, Cromwell's 

financial resources have been so strained in recent years that de novo branching 

outside its protected com m unity is most unlikely.

The resulting bank would rank 9th in deposit size among all th rift institutions in the trade area, holding 3.7 percent of total deposits, and 20th in 

deposit size among mutual savings banks in Connecticut. In addition, the proposed transaction would convert the home office of Cromwell into a branch 

office of the resulting bank, thus eliminating home office protection in Cromwell and allowing other mutual savings banks to branch into Cromwell. Several 

have indicated their intention of seeking the necessary supervisory approvals to 

do just that if the proposed merger is consummated.

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. Farmers has satisfactory financial and managerial resources and favorable prospects for the 

future, as would the resulting bank. Cromwell Bank has had to sell a substantial 

portion of its assets at a loss to honor prior lending commitments, resulting in 

limited surplus, low liquidity, and a shortage of funds fo r additional mortgage 

lending. Its managerial resources are adequate, as are its future prospects.

Convenience and Needs o f the Com m unity to be Served. The resulting bank 

would offer somewhat expanded services to Cromwell Bank customers, including an increased lending capacity on home mortgages. The merger should also 

stimulate future com petition in the local Cromwell area through removal of 

home office protection.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands

of dollars)

Ban kin g Offices

I n

operation

T o be

operated

Security Bank o f Oregon

Portland, Oregon

47,960 8 35

to merge with

The Oregon Bank

Portland

333,150 27

Summary report by A ttorney General, A pril 3, 1975 

The proposed merger of these tw o banks which are controlled by the same 

holding company would not have an adverse effect on competition.

Basis fo r Corporation approval, May 30, 1975 

Security Bank of Oregon, Portland, Oregon ("S ecurity"), a State nonmember insured bank w ith total resources of $47,960,000 and total IPC deDigitized for FRASER 

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 65

posits of $34,202,000, 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 Oregon Bank, Portland, Oregon ("Oregon Bank"), 

w ith total resources of $333,150,000 and total IPC deposits of $209,019,000. 

The banks would merge under the charter of Security and w ith the title “ The 

Oregon Bank." Incident to the merger, the 30 approved offices of Oregon Bank 

would become offices o f the resultant bank, the present main office of Oregon 

Bank becoming the main office of the resultant bank. The present main office 

and the 7 branches of Security would become branches of the resultant bank, 

which would thus have a total of 38 approved offices.

Competition. This proposed transaction has the sole purpose of enabling 

Orbanco, Inc., a Portland-based registered bank holding company, to consolidate its operations in the State of Oregon. In April 1969, Orbanco, Inc. acquired 100 percent of the common stock of Oregon Bank. On A pril 1, 1974, 

the Board of Governors of the Federal Reserve System, acting pursuant to the 

Bank Holding Company Act, approved the application of Orbanco, Inc. to 

acquire 51 percent or more of the voting shares of Security. More than 90 

percent of the voting shares o f Security are presently owned by Orbanco, Inc. 

This proposed merger, accordingly, would not in itself change the structure of 

commercial banking in the State of Oregon, nor the existing concentration of 

commercial bank resources.

The Corporation 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 o f trade.

Financial and Managerial Resources; Future Prospects. Prior to its acquisition in A pril 1974, the financial and managerial resources of Security were 

unsatisfactory. The future prospects of Security are clearly more favorable as a 

part of Orbanco, Inc. than as an independent entity. Financial and managerial 

resources of Oregon Bank are satisfactory and its future prospects are favorable. The resultant bank would have the satisfactory financial and managerial 

resources, and the favorable future prospects, of Oregon Bank.

Convenience and Needs o f the Com m unity to be Served. No office o f either 

bank would be discontinued follow ing the merger so customers of Security and 

Oregon Bank would have an increased number of locations in the city of 

Portland and nearby suburbs at which to conduct their banking business.

On the basis of the foregoing inform ation, the Corporation has concluded 

that approval of the application is warranted.

Resources Banking Offices

(in

thousands

of dollars)

I n

operation

To be

operated

Mid-State Bank and Trust Company

Altoona, Pennsylvania

193,953 17 19

to merge with

The First National Bank of Philipsburg

Philipsburg

37,437 2

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66 FEDERAL DEPOSIT INSURANCE CORPORATION

Summary report by A ttorney General, December 24, 1974

Mid-State Bank and Philipsburg Bank are headquartered about 32 miles 

apart and the nearest offices of the two banks are 23 miles apart. According to 

the application, neither bank draws significant business from the service area of 

the other, and topography inhibits the development of com petition between 

them. Thus, it does not appear that the proposed transaction would eliminate 

substantial existing competition.

Philipsburg Bank enjoys a leading position in the Philipsburg area which 

straddles the county line between Clearfield and Centre Counties. Mid-State 

Bank is one of the largest banks that could legally be permitted to open new 

branches in this area. The nature of the Philipsburg area, however, w ith a 

decline in population projected over the next several years, indicates that this 

transaction w ill not eliminate substantial potential competition.

Basis fo r Corporation approval, May 30, 1975

Mid-State Bank and Trust Company, Altoona, Pennsylvania ("M id-State"), a 

State nonmember insured bank w ith total resources of $193,953,000 and total 

IPC deposits of $160,643,000, 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 First National Bank of Philipsburg, Philipsburg, 

Pennsylvania ("FN B Philipsburg"), w ith total resources of $37,437,000 and 

total IPC deposits of $29,797,000, under the charter and title of Mid-State. As 

an incident to the merger, the 3 authorized offices of FNB Philipsburg would 

become branches of the resultant bank, increasing the number of its authorized 

offices to 21.

Competition. Mid-State operates 11 offices in Blair County and 6 offices in 

Centre County, both in central Pennsylvania. It also has approval to establish a 

branch in Bellefonte, Centre County. Except for Altoona (1970 population 

63,115), most of Blair County (population 135,356) is forested or used for 

agricultural purposes. The economy of Centre County (population 99,267) is 

dominated by Pennsylvania State University, whose main campus is at State 

College (population 33,778, up 50.7 percent from 1960). The university has an 

enrollment of about 30,000. Centre County's median household buying level in 

1973 was $9,014 compared to the State's $9,588.

FNB Philipsburg operates its main office in Philipsburg in the extreme 

western portion of Centre County and one branch in Kylertown, about 7 miles 

north in Clearfield County. It also has approval for an additional branch in the 

immediate Philipsburg area. Philipsburg (population 3,700) is effectively 

separated from the rest of Centre County by the Allegheny Mountains. This 

and the fact that State forest land lies to the immediate east o f Philipsburg 

have forced expansion to the west into Clearfield County. Once of primary 

importance, coal mining still contributes to the economy of the area although 

manufacturing (garments, bricks, cigars) has assumed greater importance. The 

declining population trend is expected to continue, and the economy of the 

area is virtually stagnant.

The area in which the effect of the proposed merger would be most immediate and direct is best approximated by an area lying w ithin 15 road-miles of 

Philipsburg. W ithin this area 6 commercial banks operate 13 offices. Ranking 

second, FNB Philipsburg holds 22.6 percent of the area's $132 m illion in 

commercial bank IPC deposits. County National Bank, Clearfield, holds 41.0

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 67

percent of this market and Clearfield Bank and Trust Company, 22.0 percent. 

Mid-State's nearest offices to Philipsburg are in State College, about 24 miles 

east over the Bald Eagle Ridge of the Allegheny Mountains, and although there 

is some minor comm utation from Philipsburg to State College fo r employment, 

the tw o banks are not competitive w ith each other. Mid-State and FNB Philipsburg serve basically separate markets, and no significant existing com petition 

between them would be eliminated by their proposed merger.

Pennsylvania law permits a bank to branch de novo throughout its home 

office county and contiguous counties. Accordingly, Mid-State could branch 

throughout Blair, Cambria, Clearfield, Centre, Huntingdon, and Bedford 

Counties and has demonstrated its ability to branch de novo successfully in 

the past. It is doubtful, however, that Mid-State would find the Philipsburg 

area desirable because of the sparse and declining population and the number 

of banking offices already established in the area. Although FNB Philipsburg 

has the financial and managerial resources to branch into Mid-State's service 

areas, it has maintained a Philipsburg orientation throughout its 80-year history, and it appears unlikely that it would now challenge the much larger banks 

found in Mid-State's service areas.

W ithin the 6-county legal branching area of Mid-State, 46 commercial banks 

operate 168 offices. Mid-State ranks first w ith 13.0 percent of the $1.2 billion 

in commercial bank IPC deposits. First National has 2.5 percent of these 

deposits, and the resultant bank would therefore widen its lead over the second 

ranking bank's 11.6 percent share. The six-county region is relatively unconcentrated, however, and the proposed merger is unlikely to affect adversely the 

structure of commercial bank competition in the future.

In accordance w ith Corporation policy enunciated in its decision of December 1, 1970, w ith respect to the proposed merger of the Pennyslvania Bank 

and Trust Company, Titusville, and The Exchange Bank and Trust Company, 

Franklin, (and affirmed in similar subsequent decisions) Mid-State would be 

required, if this application is approved, to divest itself w ithin a reasonable 

period of time of the stock it holds in any Pennsylvania bank that can branch 

or merge under Pennsylvania law into one or more of the six counties indicated. This requirement, in view of the share of the six-county market which 

Mid-State would control after the proposed merger, is considered advisable in 

order to avoid any artificial restraint on banking com petition in that area and 

to discourage the further concentration of its commercial bank resources.

For the reasons stated and w ith the contemplated divestiture of Mid-State's 

investment in the stock of actual and potential competitors, 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 and future prospects, and the 

same would be true of the resultant bank.

Convenience and Needs o f the Community to be Served. The proposed 

merger would bring to customers of FNB Philipsburg an aggressive bank w ith a 

much larger lending lim it (nearly $2 m illion), trust services, more comprehensive loan processing services, and much greater expertise in handling a wider 

variety of loans. It should also have the effect of intensifying com petition w ith 

the two banks headquartered in Clearfield.

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

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

T o be

operated

Northern Central Bank and Trust Company

Williamsport, Pennsylvania 

(change title to North Central Bank)

155,920 11 13

to merge with

The First National Bank of Dushore

Dushore

15,459 2

Summary report by Attorney General, February 25, 1975

Dushore Bank is the larger of two small banks in Sullivan County (population 6,000). Northern Bank operates offices in Bradford County, approximately 35 miles north of Dushore Bank, and in Lycoming and Northumberland 

Counties, at least 25 miles southwest of Dushore Bank. Although there is some 

overlap between the service areas of the parties to this transaction, it does not 

appear that the merger would eliminate substantial existing com petition. And 

in view of the nature of the area served by Dushore Bank, together w ith its 

relatively small absolute size, we conclude that the merger would not eliminate 

substantial potential competition.

Basis for Corporation approval, May 30, 1975

Northern Central Bank and Trust Company, Williamsport, Pennsylvania 

("C entral"), a State nonmember insured bank w ith total resources of 

$155,920,000 and total IPC deposits of $123,681,000, 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 First National Bank of 

Dushore, Dushore, Pennsylvania ("FN B Dushore"), w ith total resources of 

$15,459,000 and total IPC deposits of $13,464,000. These banks would merge 

under the charter of Central and w ith the title "N orthern Central Bank." The 

resultant bank would have a total of 13 offices, including the 2 offices presently operated by FNB Dushore.

Competition. Central operates a total of 11 offices: its main office and 2 

branches in Williamsport and 2 branches in the Montgomery area, about 11 

road-miles southeast of Williamsport, all in Lycoming County; 2 branches in 

the M ilton area, about 25 road-miles southeast of Williamsport, and 3 branches 

in the Sunbury area, some 36 road-miles southeast of W illiamsport, all in 

Northumberland County; and 1 branch in Athens, in northern Bradford County, approximately 80 road-miles northeast of Williamsport.

FNB Dushore operates its tw o offices in Sullivan County, its main office in 

the borough of Dushore (1970 population 718) and a limited service facility in 

Eagles Mere (population 157), a borough located some 13 road-miles southwest

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 69

of Dushore. Sullivan County (population 5,961) is in major part mountainous 

and forested. Its economy is largely dependent on recreational activities and 

wood products industries. The 1973 median household buying level of the 

county ($7,410) lagged that of the State by 23 percent.

The competitive impact of the proposed merger would be most immediate 

and direct in the sparsely populated local area of northeastern Pennsylvania 

which extends about 15 miles from Dushore and Eagles Mere, the location of 

FNB Dushore's tw o offices. This area includes most of Sullivan County, the 

southeastern portion of Bradford County, the far western portion of Wyoming 

County, and the far eastern portion of Lycoming County. Eight commercial 

banks having 10 offices serve the market, FNB Dushore having the largest share 

(26.1 percent) of total commercial bank IPC deposits. Central is not located in 

this market, its nearest office being about 35 miles away from Eagles Mere. 

Several offices of competing banks intervene. The application indicates that 

only a minimal amount of business is drawn by either proponent from the 

service area of the other, and thus, it appears that no significant existing 

competition between the two banks would be eliminated by their proposed 

merger.

Pennsylvania law permits a commercial bank to branch de novo in its main 

office county and in all counties contiguous thereto. Central may, accordingly, 

enter de novo locations in Sullivan County like Dushore and Eagles Mere, but 

in view of the small population to be served, the area's below average buying 

levels, and the 10 existing commercial bank offices, de novo entry cannot 

reasonably be expected. FNB Dushore, for its part, has an unaggressive management and presently evidences no interest in de novo expansion. The proposed 

merger, thus, would eliminate no significant potential for increased com petition between the two banks through de novo branching in the future.

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 multibank holding companies), a total of 57 commercial 

banks operate 150 offices and hold area IPC deposits aggregating $1,292 

m illion. Central has 9.6 percent— the largest share— of such deposits and 7.3 

percent of the area's commercial banking offices. The proposed transaction 

would increase Central's IPC deposit share in this region to 10.7 percent and its 

share of commercial banking offices to 8.7 percent. Central, together w ith the 

four next ranking banks in the region, would then hold an aggregate of 34.9 

percent of such deposits and 31.3 percent of such offices. In view of the 

relatively unconcentrated nature of this 10-county area and the presence of 

other competitors of substantial size, it does not appear that the proposed 

merger would have any significant adverse effect on the concentration o f banking resources or the future structure of commercial banking in this relevant 

area.

Linder these circumstances, the Board of Directors is of the opinion that the 

proposed merger would not, in any section of the country, substantially lessen 

competition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Both Central and 

FNB Dushore have satisfactory financial and managerial resources. Their future 

prospects are favorable. The resultant bank would have satisfactory financial 

and managerial resources and favorable future prospects.

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70 FEDERAL DEPOSIT INSURANCE CORPORATION

Convenience and Needs o f the Com m unity to be Served. The merger would 

bring the specialized services of one of the region's major banks to the market 

area of FNB Dushore. More sophisticated credit services would be offered by 

an aggressive management, operating w ith a lending lim it of $1.2 m illion. 

Credit cards and overdraft banking, data processing, and trust services would 

also be available fo r the first time at the FNB Dushore locations.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

I n

operation

T o be

operated

The Bank of Cowan

Cowan, Tennessee

(change title to Franklin County Bank)

8,058 1 2

to merge with

Bank of Sewanee

Sewanee'

5,423 1

Summary report by A ttorney General, August 22, 1974 

The communities of Cowan (population 1,979) and Sewanee (population 

1,628) are located about 6 miles apart in east-central Franklin County. There 

are no competitive alternatives in the intervening area. Thus, it appears that the 

proposed merger would eliminate existing com petition and increase concentration in commercial banking in Franklin County.

Basis fo r Corporation approval, June 11, 1975 

The Bank of Cowan, Cowan, Tennessee ("Cowan Bank"), a State nonmember insured bank w ith total resources of $8,058,000 and total IPC deposits of $5,258,000, 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 Bank of Sewanee, Sewanee, Tennessee ("Sewanee 

Bank"), w ith total resources of $5,423,000 and total IPC deposits of 

$3,255,000. The banks would merge under the charter of Cowan Bank w ith 

the title "Franklin County Bank" and, as an incident to the merger, the one 

office of Sewanee Bank would become a branch of the resultant bank.

Competition. On November 15, 1973, Charles N. Turner and four other 

individuals purchased 93 percent of the outstanding stock of Cowan Bank. Mr. 

Turner owns 18.3 percent of the stock, is a director of the bank, and represents 

the ownership group in exercising effective control of the bank. He has been 

Chairman of the Board of Sewanee Bank since November 1, 1971, and owns

32.2 percent of the outstanding stock of that bank. The banks had operated 

independently for approximately 65 years prior to Mr. Turner's involvement. 

While it could be contended that no meaningful com petition between the two 

banks now or in the future would be eliminated by the proposed merger

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 71

because of their affiliation, the Corporation has consistently taken the position 

that the competitive situation at the time of the banks' affiliation is relevant in 

an application such as this in order to avoid widespread evasion of the purposes 

of the Bank Merger Act. Since the situation in late 1973 was very much like 

the present for the relevant market area, w ith the same banks sharing approximately the same percentages of the market, the follow ing analysis is based on 

current data.

Cowan Bank's only office is in the town of Cowan (population 1,772) in the 

northeastern part of Franklin County, Tennessee. The bank has approval to 

establish a branch in Winchester, the county seat, 7 miles west of Cowan. 

Cowan Bank is the third largest commercial bank in the county, w ith 11.5 

percent of total IPC deposits.*

Sewanee Bank is located in Sewanee (population 1,886), near the eastern 

border of Franklin County. It holds 7.4 percent of Franklin County's total IPC 

deposits, the smallest share of the five banks operating therein.

Franklin County (population 27,289 in 1970, an increase of 6.9 percent 

from 1960) is in southeastern Tennessee and borders on Alabama. It is primarily an agricultural county, w ith 78.9 percent of the population living in 

rural areas, and has no major metropolitan centers. The median household 

buying level for the county was $6,886 in 1973, 1 1.9 percent below the State 

median.

Although Cowan Bank and Sewanee Bank are only 6 miles apart in northeastern Franklin County, the terrain minimizes com petition between the two 

banks. Sewanee is situated in a mountainous locale while the Cowan vicinity is 

flat. The major portion of Sewanee Bank's business is derived from the immediate Sewanee area and little effort has been made to expand its trade area, as 

evidenced by its modest growth.

The proposed merger would have its most immediate impact in Sewanee. 

This small unincorporated com m unity is highly dependent upon the University 

of the South, the main employer, and most of Sewanee Bank's business is 

related in some way to the college and its activities. Given these facts, it 

appears that no significant existing com petition between the tw o banks would 

be eliminated by the proposed merger. For any dissatisfied customers, there 

would be three other banks remaining in Franklin County as well as a bank in 

Tracy City (Grundy County), 14 miles northeast of Sewanee, a reasonable 

number of alternatives relative to the population served.

Either of the participating banks could legally establish de novo branches 

elsewhere in Franklin County, including in the com m unity where the other is 

located. This does not appear likely, however, because of the lack of significant 

population centers, the limited managerial and financial resources of the two 

banks, and the. low population per office for each existing bank office in 

Franklin County, i.e., 2,729 persons, 30 percent below the State average. 

Although Cowan Bank recently received approval to establish a branch in 

Winchester, the largest population center in the county, it is not likely to 

branch de novo into less populated sections of the county. The proposed 

merger would, therefore, eliminate no significant potential for increased competition between the two banks in the future.

^Percentage shares as of June 30, 1974.

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72 FEDERAL DEPOSIT INSURANCE CORPORATION

In Franklin County, which is also the maximum branching and merging area 

for the proponents, there are 5 commercial banks operating 10 offices w ith 

aggregate IPC deposits of $43.9 million. The market is dominated by its two 

largest banks, which together hold 73.7 percent of the total IPC deposits. The 

resultant bank, w ith 18.9 percent of such deposits, should be better able to 

compete w ith these leading local banks.

The Board of Directors is of the opinion that the 1973 affiliation did not, in 

any section of the country, substantially lessen com petition, tend to create a 

monopoly, or in any other manner restrain trade. This being the case, the 

Corporation finds that the affiliation of the proponents in 1973 did not have 

any significant anticompetitive effects and, accordingly, that the application 

now before it should also be viewed as having no significant effects on com petition in the relevant local market.

Financial and Managerial Resources; Future Prospects. Both Cowan Bank 

and Sewanee Bank have adequate financial and managerial resources for the 

business they do and favorable prospects for the future, as would the resultant 

bank.

Convenience and Needs o f the Community to be Served. The proposed 

merger would provide customers in the Cowan and Sewanee areas w ith a larger 

bank, allowing expanded services and a larger lending lim it.

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

The First National Bank of Boston

Boston, Massachusetts

8,094,391 38 38

to acquire the assets and assume

the deposit liabilities of

Luxembourg Branch of Bank of

Boston International

New Y ork, New York

78,431 1

Summary report by Attorney General, May 12, 1975 

We have reviewed this proposed transaction and conclude that it would not 

have a substantial competitive impact.

Basis for Corporation approval, June 19, 1975 

The First National Bank of Boston, Boston, Massachusetts ("F N B B "), a 

national banking association having total resources of $8,094,391,000 and 

total deposits of $6,628,468,000, has applied, pursuant to section 18(c) and 

other provisions of the Federal Deposit Insurance Act, for the Corporation's 

prior consent to acquire assets of and assume the liability to pay deposits made 

in the Luxembourg Branch of Bank of Boston International, New Y ork, New

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 73

York ("B B I"), a noninsured, w holly owned Edge A ct subsidiary of FNBB. This 

branch has total resources of $78,431,000 and total deposits of $76,018,000.

The proposed transaction is in effect a corporate reorganization whose purpose is to change the legal form under which FNBB conducts business in the 

Luxembourg market. The transaction consummated, FNBB would carry on 

essentially the same business at its Luxembourg Branch as has heretofore been 

conducted by B B I.

Competition. It is evident that the proposed transaction would have no 

effect on either existing or potential com petition between FNBB and BBI or 

on the structure of commercial banking in any relevant area.

Financial and Managerial Resources; Future Prospects. These factors are 

acceptable for both FNBB and BBI. Future prospects for the banking office 

involved in the proposed transaction appear to be more favorable as a branch 

of FNBB than if it were to continue as a branch of BBI.

Convenience and Needs o f the Com m unity to be Served. The proposal 

would have no effect on the convenience and needs of any o f FNBB's domestic 

markets. In the Grand Duchy of Luxembourg, the office of FNBB, which 

following consummation of the transaction would represent the $8 billion 

parent institution, should provide a more effective attraction fo r business in 

the international market than has heretofore been provided by a branch of a 

subsidiary of FNBB.

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

Centinela Bank

Inglewood, California 

(change title to Tokai Bank 

of California)

27,871 6 7

to merge w ith

Tokai Bank of California

Los Angeles

44,750 1

Summary report by A ttorney General, April 29, 1975 

We have reviewed this proposed transaction and conclude that it would not 

have a substantial competitive impact.

Basis fo r Corporation approval, July 11, 1975

Centinela Bank, Inglewood, California ("C entinela"), a State nonmember 

insured bank w ith total resources of $27,871,000 and total IPC deposits of 

$19,767,000, has applied, pursuant to section 18(c) and other provisions of the 

Federal Deposit Insurance Act, for the Corporation's prior consent to merge 

with Tokai Bank of California, Los Angeles, California ("Tokai-C al"), a State 

nonmember insured bank w ith total resources of $44,750,000 and total IPC

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

deposits of $32,549,000, under the charter of Centinela and w ith the title 

"Tokai Bank of C alifornia," and to establish the sole office of Tokai-Cal as a 

branch of the resultant bank. Consent is also requested that, following the 

merger, the main office of Centinela be designated a branch and that the 

branch at 534 West Sixth Street, Los Angeles, California (the present office of 

Tokai-Cal), be designated the main office. In another application, consent has 

been requested to issue capital notes and to retire these notes at m aturity, 7 

years after date of issue.

Competition. Centinela operates its six offices in Southern California: the 

main office and three branches (including one seasonal facility) in southern Los 

Angeles County and two branches in southern Orange County. Its Los Angeles 

County offices serve the city of Inglewood and adjacent Lennox, an unincorporated com m unity (aggregate population 106,100) some 11 miles west of 

downtown Los Angeles; Playa del Rey, a modest-sized com m unity about 5 

miles west of the main office; and Hermosa Beach (population 17,412), located 

some 8 miles south of the main office. Centinela is 93rd largest of California's 

commercial banks w ith 0.03 percent of their total deposits.

Tokai-Cal, which opened in mid-1974, has its sole office in downtown Los 

Angeles. Owned by Tokai Bank, Ltd., Nagoya, Japan, its business is largely that 

of a wholesale bank, engaged in international finance. Tokai-Cal ranks 70th 

largest of the State's commercial banks, holding 0.04 percent of their total 

deposits.

No office of Centinela, other than its seasonal facility operated during Los 

Angeles' annual Boat Show, is located w ithin 10.8 miles of Tokai-Cal, and 

numerous offices of other commercial banks intervene. The two banks serve 

separate trade areas w ithin the Los Angeles-Long Beach SMSA, Tokai-Cal 

does not operate in Orange County, and there appear to be no common customers. The tw o banks combined hold less than 0.2 percent of all commercial 

bank IPC deposits in the Los Angeles-Long Beach market, the offices of each 

are subject to com petition by one or more of California's large branch banks, 

and it is obvious that the proposed merger would eliminate no significant 

existing com petition between them and would not substantially change the 

structure of commercial bank com petition w ithin the relevant local banking 

markets.

Although California law permits statewide de novo branching, Tokai-Cal, in 

view of the specialized nature of its business, would probably not find it 

necessary to expand de novo. Should it choose to diversify the scope of its 

business by de novo branching to include retail banking, it would be unlikely 

to enter de novo the highly competitive markets in which Centinela is now 

represented. Centinela, for its part, lacks the financial and managerial resources 

to engage in additional de novo branching for the foreseeable future. Moreover, 

considering the modest size of each bank and the intense com petition which 

exists in the areas in which each is represented, their proposed merger is unlikely to have any perceptible impact on future com petition either in Los 

Angeles County or in Orange County.

Commercial banking in California is concentrated to a high degree, w ith five 

large branch banks controlling 78.7 percent of the deposits held by all 186 of 

this State's commercial banks. By the proposed merger, Centinela would become the 49th largest commercial bank in the State, but it would then hold 

only 0.07 percent of the State's total commercial bank deposits.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 75

The Board of Directors, fo r the reasons stated, is of the opinion that the 

proposed merger would not, in any section of the country, substantially lessen 

competition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. Tokai-Cal appears to 

have adequate financial and managerial resources. Centinela has had poor earnings and weak management, two problems which should be resolved by the 

proposed merger. The resultant bank would have satisfactory financial and 

managerial resources and favorable future prospects.

Convenience and Needs o f the Communities to be Served. No immediate or 

significant change in services now available at Tokai-Cal's office is expected by 

virtue of the proposed merger. A t Centinela's offices, there would be some 

broadening of international financial services, based on the expertise of TokaiCal's management. Lending limits o f the resultant bank would be increased to 

$190,000 unsecured and $380,000 secured. These additional services and the 

increased lending capability may prove attractive to a small segment of Centinela's clientele, but they would not be decisive factors in favor of approval but 

for the absence of anticompetitive impact and the presence of some favorable 

banking factors.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

1; n

Banking Offices

Un

thousands

of dollars)

I n

operation

To be

operated

First-Citizens Bank and Trust Company

of South Carolina

Columbia, South Carolina

217,893 38 42

to purchase the assets and assume

the deposit liabilities of

First State National Bank

Jackson

11,293 4

Summary report by A ttorney General, June 19, 1975

We have reviewed this proposed transaction and conclude that it would not 

have a substantial competitive impact.

Basis for Corporation approval, August 1, 1975

First-Citizens Bank and Trust Company of South Carolina, Columbia, South 

Carolina ("C itizens"), a State nonmember insured bank w ith total resources of 

$217,893,000 and IPC deposits of $159,488,000, has made application, 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 First State National Bank, Jackson, South 

Carolina ("F irst State"), w ith total assets of $11,293,000 and IPC deposits of

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76 FEDERAL DEPOSIT INSURANCE CORPORATION

$9,519,000, and to establish as branches the four offices presently operated by 

First State. Application has also been made pursuant to section 18(i) of said 

Act fo r the Corporation's advance consent to retire a capital note in the principal amount of $3,100,000 which is being sold to another bank by Citizens as 

an integral part of this transaction.

Competition. Citizens operates a total of 38 offices: its main office and 10 

branches in Columbia, the State's capital, and its suburbs; 6 branches in the 

Charleston area of southeastern South Carolina; 5 branches in the Spartanburg 

area of northwestern South Carolina; and 16 branches in various other northern and eastern locations. Citizens holds the sixth largest share, 4.8 percent, of 

the IPC deposits held by all 90 commercial banks in the State.

First State has its main office in the town of Jackson (population 1,928) in 

western South Carolina near Augusta, Georgia, and one branch each in Beech 

Island and Belvedere, tw o small unincorporated communities located some 8 

and 19 road-miles, respectively, northwest of the main office; all of these 

offices are in southwestern Aiken County. One additional branch is located in 

the town of Saluda (population 2,442) in central Saluda County, some 56 

road-miles north of the main office.

First State operates in tw o local markets: one comprising Augusta, Georgia, 

its environs, and the western half of Aiken County, and the second comprising 

Saluda County. The former had an estimated population of 93,800 in 1970, a 

decrease of some 6.1 percent during the preceding decade. The Aiken County 

portion of this market is agricultural w ith many inhabitants finding em ployment either in a plant of the Atom ic Energy Commission, situated immediately 

to the south, or in Augusta. Aiken County as a whole had a 1973 median 

household buying level of $9,848, some 18 percent above that of South Carolina. Augusta's median level ($6,608), however, lagged Georgia's median by

23.5 percent. A total of 8 commercial banks operate 34 offices in this market. 

Of the IPC deposits held by these offices, First State has the seventh largest 

share, 1.8 percent. Only tw o banks operate in Saluda County (population 

14,528). This county, largely agricultural, had a 1973 median buying level of 

$7,466— 10.5 percent below that of South Carolina as a whole. First State has

20.2 percent of Saluda County's commercial bank IPC deposits, w ith Bankers 

Trust of South Carolina, the State's third largest bank, holding 79.8 percent.

Citizens is not represented in either the Augusta-Aiken market or in Saluda 

County. Its office closest to First State is a branch in West Columbia, a city 

some 45 road-miles east of First State's Saluda Branch. Citizens does not draw 

a significant portion of its loans or deposits from First State's markets, although some $2 m illion in First State's loans were originated by a loan production office (since closed) in Citizens' headquarters city. Competition presently 

existing between the two banks does not appear to be significant.

Although statewide de novo branching is permitted by South Carolina law, 

First State, because of existing managerial and financial problems, does not 

have the resources to undertake such expansion. Citizens, in contrast, has both 

the capability and expertise to branch de novo, but would likely find other 

areas of South Carolina more attractive fo r such activity than Saluda County, 

an area having a stagnant population and low buying levels, or western Aiken 

County, where the incorporated communities are all small. To the extent the 

Augusta-Aiken market becomes attractive for further de novo branching, there 

are at least two South Carolina branch banks larger than Citizens that would

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 77

remain as potential entrants. Any loss of potential competition between 

Citizens and First State thus appears to be relatively inconsequential.

In South Carolina as a whole, the transaction would increase Citizens' share 

of commercial bank IPC deposits from 4.8 percent to 5.1 percent. The bank 

would continue to be sixth largest of the State's commercial banks.

For the reasons stated, the Board of Directors is of the opinion that the 

proposed transaction would not, in any section of the country, substantially 

lessen 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 Citizens are satisfactory; those of First State are not. It 

has experienced heavy loan losses and its earnings have been in a negative state 

for the last year and a half. With the increase in capital funds required by the 

State authority as a condition for the approval of this transaction, future 

prospects of Citizens following consummation of the proposal are favorable.

Convenience and Needs o f the Communities to be Served. Citizens' acquisition of the assets and deposits of First State and the concurrent establishment 

of the latter's four offices as branches of Citizens would bring to customers of 

First State, in southwestern Aiken County and in Saluda County, a bank w ith 

increased credit capability, a lending lim it raised to more than $1 m illion, trust 

facilities, and expanded data processing facilities. Availability of these 

broadened services, together w ith the payment of a higher rate of interest on 

two types of savings accounts, should stimulate competition in the markets 

involved 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.

Resources

(in

thousands

of dollars)

Banking Offices

I n

operation

To be

operated

The Bank of Tokyo o f California

San Francisco, California

to purchase the assets and assume

the deposit liabilities of

916,995 25 99

Southern California First National Bank

San Diego

884,108 74

Summary report by Attorney General, July 25, 1975

Ten of Applicant's 23 banking offices are located in the 3 southern California counties of San Diego (1 office), Los Angeles (8 offices), and Orange (1 

office). A ll 72 of Bank's existing offices are located w ithin this 3-county area, 

with several offices in relatively close proxim ity to those of Applicant. Thus, it 

appears that the proposed transaction may eliminate some existing com petition 

between the parties.

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78 FEDERAL DEPOSIT INSURANCE CORPORATION

However, it does not appear that concentration in commercial banking 

would be substantially increased in any relevant banking market. Although 

Bank ranks second among the banks w ith offices in San Diego County and 

accounts for approximately 18 percent of total county deposits, Applicant, 

with a single San Diego branch, holds only about 0.5 percent of total county 

deposits. In Los Angeles County, Applicant holds approximately 1.3 percent of 

total county deposits while Bank holds about 0.4 percent, fo r a combined total 

of less than 2 percent. In Orange County, Applicant holds less than 0.6 percent 

of total deposits and Bank approximately 4 percent, for a combined total of 

less than 5 percent. Nor does it appear that concentration would be significantly increased in any smaller geographic areas. In the cities of Torrance and 

Santa Ana, where both parties maintain branches, the combined shares of total 

city deposits are approximately 1.4 percent and 4 percent, respectively.

Thus, while the proposed transaction may eliminate some existing com petition between the parties, we conclude that concentration would not be significantly increased in any relevant banking markets. And while Applicant could 

expand its operations in each of the areas presently served by Bank— particularly in San Diego, where Bank enjoys a significant market position— the effects 

of the transaction on potential com petition are diminished by the existence of 

other large commercial banks w ith significant expansion or entry capability.

Basis for Corporation approval, August 28, 1975

The Bank of Tokyo of California, San Francisco, California ("C alifornia 

T okyo” ), a State nonmember insured bank having total resources of 

$916,995,000 and total IPC deposits of $479,873,000 as of December 31, 

1974, 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 the liability to pay deposits made in Southern California 

First National Bank, San Diego, California ("FN B San Diego"), w ith total 

resources of $884,108,000 and total IPC deposits of $704,234,000 as of 

December 31, 1974. The proposed transaction would be effected under the 

charter and title of California Tokyo and, incident to the transaction, the 74 

existing offices and 5 approved but unopened offices of FNB San Diego would 

become branches of the resultant bank, increasing the number of its authorized 

offices to 105. California Tokyo, subsequent to consummation of the proposal, 

would operate under the title "California First Bank."

Competition. California Tokyo operates a total of 25 offices in California. It 

has 13 offices in Northern California: 2 including its main office in San Francisco County, 2 each in Alameda and Fresno Counties, 1 each in Monterey, 

Sacramento, San Joaquin, and San Mateo Counties, and 3 in Santa Clara 

County. It has the necessary approvals fo r one additional office in Santa Clara 

County. In Southern California, California Tokyo operates nine offices in Los 

Angeles County, two offices in Orange County, and one office in San Diego 

County.

FNB San Diego has its 74 offices in the 3 southernmost coastal counties of 

Southern California: 41 offices including its main office in San Diego County, 

19 offices in Orange County, and 14 offices in Los Angeles County. FNB San 

Diego also has approval to establish five additional branches, all in San Diego 

County.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 79

Effects of the proposed transaction would be most direct and immediate in 

the three counties w ithin which both banks have offices (each of which constitutes a separate SMSA):

Los Angeles County. Eighty commercial banks, having over 1,000 offices 

serve this major metropolitan area of more than 7,000,000 people. Bank 

of America National Trust and Savings Association and Security Pacific 

National Bank dominate the local banking structure, w ith more than 520 

offices and 53.3 percent of local IPC deposits between them. Crocker 

National Bank, United California Bank, Lloyds Bank California, and 

Wells Fargo Bank, National Association, all have significant branch systems in the county, while United California Bank (12.1 percent), Union 

Bank (9.5 percent), and Crocker National Bank (6.8 percent) hold the 

three next largest shares of local IPC deposits after Bank of America 

National Trust and Savings Association and Security Pacific National 

Bank. By contrast, the 23 offices of the resultant bank would constitute 

slightly over 2 percent of all commercial bank offices in the county, and 

its $360 m illion in local IPC deposits would constitute only 1.7 percent 

of the county's total. Only 4 of these 23 offices are w ithin 5 miles of 

each other.

Orange County. Thirty-nine commercial banks, having almost 300 o ffices, serve this rapidly growing market of well over 1,600,000 persons. 

Bank of America National Trust and Savings Association controls 75 of 

those offices and 29.8 percent of the county's commercial bank IPC 

deposits. Security Pacific National Bank follows w ith 54 offices and a 

local market share equal to 19 percent of the county's IPC deposits. 

United California Bank, Crocker National Bank, Wei Is Fargo Bank, 

National Association, and Lloyds Bank California among them have 

about 80 offices, while the third, fourth, and fifth largest shares of local 

commercial bank IPC deposits are held by United California Bank (12.5 

percent), Crocker National Bank (6.1 percent), and Union Bank (5.5 

percent). By contrast, the resultant bank would have 21 of such offices 

and 4.7 percent of such deposits. California Tokyo presently has only 

two offices in the county w ith about $16 m illion in IPC deposits. One of 

these offices is about a half mile away from an office of FNB San Diego. 

San Diego County. FNB San Diego presently has 41 offices and 19.4 

percent of the county's total IPC deposits, ranking third in number of 

offices and second in local IPC deposits. Bank of America National Trust 

and Savings Association ranks first in both respects (68 offices, local 

share of IPC deposits 29.6 percent), while Security Pacific National Bank 

is second in number of offices (44) and third in local share of IPC 

deposits (17.3 percent). San Diego Trust and Savings Bank is the fourth 

ranking bank in both respects (22 offices, 9.6 percent of local IPC 

deposits) while Crocker National Bank, by virtue of its 1973 acquisition 

of the offices and deposits of the defunct United States National Bank, is 

fifth (14 offices and 6.7 percent in local IPC deposits). California Tokyo 

has only one recently established de novo office in the county w ith 

approximately $4 million in local IPC deposits. Twenty-one banks other 

than those mentioned also compete in the San Diego market.

In each market, some slight existing com petition between California Tokyo 

Digitized 

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but this is considered de minim is in San Diego and Orange Counties because of 

California Tokyo's limited number of offices and small volume of local IPC 

deposits. While more offices of both banks are involved in Los Angeles County, 

the market is significantly larger and the respective market shares of both 

banks very small. California Tokyo, moreover, has stressed in the past wholesale banking while FNB San Diego has stressed retail banking and consumer 

credit.

The merger would clearly eliminate increased com petition between the two 

banks in the future, even if FNB San Diego is considered tem porarily disabled 

by virtue of its financial and managerial shortcomings. California Tokyo, over 

the past 10 years, has been expanding de novo aggressively and successfully in 

many parts of California, including these three counties, and w ith its financial 

and managerial resources, it is fu lly capable of continuing such expansion. In 

addition, it is moving more obviously into retail and consumer banking than 

heretofore. Nonetheless, the elimination of this potential com petition is not 

viewed as a matter of particularly serious competitive consequence. Eight 

banks w ith larger shares o f the local market than the resultant bank would 

continue to compete in Los Angeles County, and the market has numerous 

smaller, aggressive competitors. Orange County has several large, fast-growing 

local banks, while San Diego County has similar prospects of future com petition as its economic growth and population increases. The Bank of California, 

National Association, one of the State's billion dollar branch banks, is about 

the same size as California Tokyo and FNB San Diego combined and yet has a 

minimal number of offices and few IPC deposits in these three Southern California counties. Wells Fargo Bank, National Association, the State's third 

largest bank, also has disproportionately low representation in the three counties, and must be considered a prime source of future com petition. Lloyds 

Bank California, another of California's billion dollar branch banks has no 

office in San Diego County, and United California Banks is relatively underrepresented. The loss of potential com petition between California Tokyo and 

FNB San Diego is thus viewed as unlikely to have any significant effect on 

future com petition or future bank structure in any of the three counties.

Statewide, the resultant bank would rank eighth in domestic deposit size, 

holding about 2 percent of California's total commercial bank IPC deposits. 

The six largest California banks range in size from Bank of America's $22 

billion in such deposits (36.6 percent of the total) to Union Bank's $2.5 billion 

(4.2 percent of the total).

Under the circumstances, 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. California Tokyo has 

satisfactory financial and managerial resources; those of FNB San Diego in 

recent years have been less than satisfactory, w ith significant chargeoffs in the 

commercial loan portfolio, inexperienced and frequently changed management, 

low earnings, and a deteriorating capital base. Financial and managerial resources of the resultant bank would be acceptable and its future prospects 

appear favorable. California Tokyo, as an integral part of this transaction, 

intends to increase the capital funds of the resultant bank by more than $70 

million.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 81

Convenience and Needs o f the Com m unity to be Served. Consummation o f 

the proposed transaction should benefit customers of both banks by the significantly higher lending lim it that would be available to them in the resultant 

bank. California Tokyo's capable and aggressive management should mount 

significantly stronger com petition w ith the State's major branch banks in three 

of the State's most rapidly growing counties. California Tokyo's expertise in 

commercial lending and international banking would be available to customers 

of FNB San Diego and the full services of the latter's well-established trust 

department would become available to customers of California Tokyo. To the 

extent comparable services are offered by competing banks in the relevant 

markets, the resultant bank would become an additional, conveniently available alternative for such services.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

I n

operation

To be

operated

Farmers State Bank 47,616 3 3

Marion, Iowa

to merge wi th

Marlinn, Inc.

Marion

Summary report by A ttorney General, August 22, 1975

Farmers State Bank now owns all of the outstanding common stock of 

Marlinn, Inc., a corporation whose powers are limited to the holding of title to 

and managing real estate used in the transaction of business by the bank. The 

proposed merger is essentially a corporate reorganization and would have no 

effect on competition.

Basis for Corporation approval, August 28, 1975

Farmers State Bank, Marion, Iowa, a State nonmember insured bank w ith 

total resources of $47,616,000, 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 Marlinn, Inc., Marion, Iowa, a noninsured, nonbanking entity, under the charter and title of Farmers State Bank. The resulting bank would operate the three banking offices of Farmers State Bank in 

their present locations.

Competition. The proposed merger would be a minor internal reorganization designed to return direct ownership of Farmers State Bank's banking 

premises to the bank from its w holly owned subsidiary, Marlinn, Inc. As such, 

it would not affect competition.

The Board of Directors is of the opinion that this 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.

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82 FEDERAL DEPOSIT INSURANCE CORPORATION

Financial and Managerial Resources; Future Prospects. The financial and 

managerial resources and future prospects of Farmers State Bank are satisfactory.

Convenience and Needs o f the Community to be Served. The proposed 

transaction would be an internal reorganization and would not affect the convenience and needs of the com m unity.

Based on the foregoing inform ation, the Board of Directors has concluded 

that approval of the application is warranted.

Resources

(in

thousands

of dollars)

Ban kin g Offices

In

operation

To be

operated

Commonwealth Bank and Trust Company

Muncy, Pennsylvania

120,642 15 17

to merge with

The First National Bank of Coudersport

Coudersport

12,057 2

Summary report by A ttorney General, June 19, 1975

The competitive effects of this proposed transaction w ill be felt largely in 

Potter County, where Applicant operates tw o branches and Bank maintains its 

two offices. Applicant and Bank, each w ith about 27 percent of total Potter 

County deposits, are the two largest of the four banks w ith offices in that 

county. While this proposed merger w ill undoubtedly eliminate some existing 

competition between the parties, it is doubtful that their respective market 

shares in Potter County accurately reflect the extent to which they actually 

compete. Applicant's two Potter County offices are located about 20 miles 

north (on the New York-Pennsylvania border) and 20 miles east (on the TiogaPotter County line), respectively, of Bank's Coudersport headquarters and an 

even greater distance from Bank's Austin branch.

We conclude that this proposed merger, which will eliminate some existing 

competition and the potential for increased future com petition between the 

parties, may have some adverse competitive effects in the Potter County area.

Basis for Corporation approval, August 28, 1975

Commonwealth Bank and Trust Company, Muncy, Pennsylvania ("C om ­

m onwealth"), a State nonmember insured bank w ith total resources of 

$120,642,000 and total IPC deposits of $92,897,000, 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 Coudersport, Coudersport, Pennsylvania ("FN B Coudersport"), w ith total 

resources of $12,057,000 and total IPC deposits of $9,690,000. The banks 

would merge under the charter and title of Commonwealth and the 2 offices of 

FNB Coudersport would be established as branches of the resultant bank, 

increasing the number of its authorized offices to 18.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 83

Competition. Commonwealth operates 15 offices in 5 of the 10 northern 

Pennsylvania counties in which it may merge or branch under Pennsylvania 

law. Its main office and four branches are located in Lycoming County, five 

branches are in Tioga County, tw o branches are in Bradford County, two are in 

Potter County, and one is in Clinton County. Commonwealth has approval for 

one additional branch in Lycoming County.

FNB Coudersport has its main office in Coudersport (population 2,831) and 

its only branch in Austin (population 626), 15 road-miles south of the main 

office, both in west-central Potter County. Potter County, sparsely populated, 

largely forested, and of sub-mountainous terrain, derives much of its income 

from dairy and potato farming, timber operations, summer tourism, and hunting and fishing facilities. The county's 1973 median household buying level was

15.5 percent below that of the State as a whole. The Coudersport area depends 

in large part on operations of 3 local enterprises, which together employ some 

750 people. Austin is a rural com m unity whose population increases fourfold 

w ith the annual influx of sportsmen and vacationers. FNB Coudersport's 

primary trade area comprises all communities w ithin some 15 road-miles of 

Coudersport and Austin. It shares this market w ith another Coudersport-based 

bank, Citizens Trust Company, the two banks holding respective shares of 46.7 

percent and 53.3 percent of the area's IPC deposits, aggregating $20,753,000.

One of Commonwealth's tw o Potter County offices is 19 road-miles northwest of Coudersport in Shinglehouse, in the extreme northwestern corner of 

the county, close to the New York State border. The other is in Galeton, in 

eastern Potter County adjoining Tioga County, some 23 road-miles east of 

Coudersport. Shinglehouse (population 1,320) is a rural residential com m unity 

and many of its residents are employed in or around Olean, New York. Galeton 

(population 1,552) is the site of an electronics assembly plant and is the 

trading center for camping and hunting areas in its vicinity. Neither location 

would re p re s e n t a likely or convenient alternative for banking services to 

Coudersport residents or businessmen, since they have an alternative close at 

hand in the other commercial bank in Coudersport. The application confirms 

that neither Commonwealth nor FNB Coudersport draws a substantial amount 

of business from the areas served by the other. It thus appears that no significant existing com petition between the banks would be eliminated by their 

proposed merger.

Commonwealth may legally enter the Coudersport area de novo but would 

find such expansion unattractive in view of the area's sparse population, substantially below-average buying levels, and lack of prospects fo r significant 

economic growth in the foreseeable future. FNB Coudersport, fo r its part, has 

limited financial and managerial resources and would not be apt to attem pt de

novo expansion at the present time. The proposed merger, accordingly, would 

not eliminate a significant potential for increased com petition between the two 

banks in the future through de novo branching.

In the 10-county region w ithin which Commonwealth may merge or branch 

de novo, 56 commercial banks today operate more than 150 offices. The 

largest of these banks is Northern Central Bank and Trust Company, Williamsport, w ith 10.7 percent of the IPC deposits held on June 30, 1974, by all 

commercial bank offices in the region. Commonwealth ranks second w ith 7.0 

percent of such deposits. The resultant bank would have 7.8 percent of such 

deposits. Banking resources in this region are relatively unconcentrated and a

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84 FEDERAL DEPOSIT INSURANCE CORPORATION

sizable number of commercial banks constitute reasonably convenient alternatives fo r banking service therein. Commonwealth's acquisition of FNB Coudersport's 0.8 percent share of the region's commercial bank IPC deposits would be 

unlikely to affect future competition in this relevant area.

Based on the foregoing, the Board of Directors has concluded that the 

proposed merger would not, in any section of the country, substantially lessen 

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 banks are adequate and their future prospects, as 

separate entities, appear favorable. The resultant bank would have acceptable 

financial and managerial resources and its future prospects appear favorable.

Convenience and Needs o f the Community to be Served. The proposed 

merger would have no significant impact in the present trade area of Commonwealth. In west-central Potter County, an aggressive management, operating 

with a lending lim it of $700,000, would offer at FNB Coudersport's two 

locations the sophisticated credit services of one of the region's major commercial banks. Passbook savings accounts would be paid interest at an annual rate 

0.5 percent higher than heretofore. Trust services, data processing facilities, 

and a broader variety of deposit options would be available at FNB Coudersport's former offices. To the extent these services are presently available at the 

competing local bank, an alternative for such services would be provided in the 

relevant local market.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

Banking Offices

thousands

of dollars)

I n

operation

To be

operated

Citizens Bank

New Castle, Kentucky 

(change title to United Citizens Bank & 

Trust Company)

9,510 2 4

to consolidate with

United Farmers Bank

Campbellsburg

11,261 2

Summary report by A ttorney General, July 31, 1975

The main offices of the merging banks are about 8 miles apart and their 

nearest offices are separated by a distance of about 4 miles. Thus, the proposed 

transaction w ill eliminate existing competition between the parties in Henry 

County.

Five banks presently operate seven banking offices in Henry County. 

Citizens Bank presently ranks third among the five Henry County banks and 

United Bank ranks fifth . However, the resulting bank w ill, by a substantial

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margin, be the largest commercial bank in Henry County. Thus, it appears that 

the proposed transaction w ill eliminate existing com petition and significantly 

increase concentration in commercial banking in Henry County. Although 

some additional com petition may be provided by banks in the Louisville area, 

the proposed merger would have adverse competitive effects.

Basis fo r Corporation approval, September 2, 1975

Citizens Bank, New Castle, Kentucky ("C itizens"), a State nonmember insured bank having total resources of $9,510,000 and total IPC deposits of 

$7,803,000, 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 United Farmers Bank ("U n ite d "), Campbellsburg, Kentucky, w ith 

total resources of $11,261,000 and total IPC deposits of $8,921,000. The 

banks would consolidate under a new State charter w ith the title "U nited 

Citizens Bank & Trust Company." As an incident to the transaction, the two 

offices of United would become branches of the resultant bank.

Competition. Citizens operates its main office in New Castle, Kentucky 

(population 755), the county seat of Henry County (population 10,910), situated in the approximate center of the county. It has one branch office located 

in Port Royal, 10 miles northeast of New Castle, and one approved but unopened branch in Pendleton, 5 miles west of New Castle. Each of these branch 

communities is also very small. Citizens is the smallest commercial bank in 

Henry County.

United's main office is located in Campbellsburg, Kentucky (population 

479), on the northern fringe of Henry County approximately 8 miles north of 

New Castle. It operates one branch in Turners Station, located about 3 miles 

northeast of Campbellsburg and about 4 miles west of Citizens' Port Royal 

branch. United is the third largest bank in Henry County.

Henry County is predominantly agricultural w ith tobacco and livestock the 

principal products. Its population is stagnant, and the 1973 median household 

buying level at $6,528 was 17.4 percent below the statewide figure of $7,899.

Interstate 71 traverses Henry County and has interchanges near both New 

Castle and Campbellsburg, making both communities readily accessible to the 

cities of LaGrange, Bedford, and Carrollton, none of which is farther than 15 

road-miles from at least one office of both banks. Thus, the relevant market 

comprises Henry County together w ith eastern Oldham County, southeastern 

Trimble County, and the central third of Carroll County. Ten commercial 

banks presently maintain a total of 13 offices w ithin this market, serving a 

population estimated at 24,020. Of the market's $72.8 m illion in commercial 

bank IPC deposits on June 30, 1974, United had the fourth largest share, 11.7 

percent, and Citizens, the sixth largest share, 9.4 percent. The resultant bank 

would hold the largest share of such deposits in the defined market (21.1 

percent), while seven other banks would hold market shares ranging from 17.2 

percent to 7.1 percent.

The merging banks have main offices about 8 miles apart, while their nearest 

offices are only 4 miles apart. Thus, Citizens and United compete in the same 

general banking market and some existing competition between them would be 

eliminated. However, that competition is somewhat minimized by the strong 

com m unity orientation of both banks. In addition, the modest population of 

the area diminishes the competitive significance of differences in market shares

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and the increase in banking concentration which would result from the proposed consolidation. Following the consolidation, it appears that an adequate 

number of banking choices would remain available w ithin the relevant market 

for local businessmen and residents.

The potential for increased com petition between the banks in the future is 

also limited. Kentucky law allows countywide branching but prohibits de novo

branching w ithin the incorporated limits of a com m unity that contains the 

main office of an existing bank unless the branching bank also has its main 

office in that com m unity. Therefore, in view of the small size of the communities in the relevant market which remain available for de novo entry, such 

branching by either bank, and increased com petition between them in the 

future through such branching, appears remote.

Under the 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 manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. The resultant bank 

would have adequate financial and managerial resources and its future prospects are considered favorable.

Convenience and Needs o f the Communities to be Served. An increased 

lending lim it and a greater supply of lendable funds should benefit residents 

and businessmen w ithin the relevant market. In addition, the resultant bank 

proposes to offer trust services, a service presently not offered by either of the 

proponents.

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

Grenada Bank

Grenada, Mississippi

192,268 25 31

to merge with

Coahoma National Bank

Clarksdale

52,233 6

Summary report by A ttorney General, August 22, 1975

Coahoma Bank is the second largest of three banks in Coahoma County, 

holding 36.5 percent of total county bank deposits. Grenada Bank's closest 

office, in Summer, is 19 road-miles southeast of Clarksdale and its Shelby 

office is 22 miles southwest of Clarksdale. The application indicates that the 

merging banks draw little business from each other's service areas. Thus, it does 

not appear that the proposed transaction would eliminate substantial existing 

competition. Nor does it appear that the proposed merger would eliminate 

substantial potential com petition, in view of the presently limited growth outlook for areas served by Coahoma Bank.

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We conclude that the proposed merger would not have a substantially adverse effect on competition.

Basis fo r Corporation approval, September 2, 1975

Grenada Bank, Grenada, Mississippi, a State nonmember insured bank w ith 

total assets of $192,268,000 and total IPC deposits of $153,799,000, 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 Coahoma National Bank, Clarksdale, Mississippi ("Coahom a"), 

w ith total resources of $52,233,000 and total IPC deposits of $39,253,000. 

Incident to the merger, the 6 offices of Coahoma would be established as 

branches of the resultant bank, increasing to 31 the total number of its offices.

Competition. Grenada Bank maintains offices in 10 counties in the northern 

half of Mississippi, namely Grenada, Bolivar, Calhoun, Chickasaw, Choctaw, 

Leflore, Sunflower, Tallahatchie, Webster, and Winston. This region is primarily agricultural although light industry has been assuming greater economic 

importance during the past decade. The 1970 population o f these 10 counties 

was 236,080, an overall 9.5 percent decrease since 1960. Median household 

buying levels throughout the region, w ith the exception of Grenada County, 

are substantially below the State median, which itself is the second-lowest in 

the nation.

Coahoma has its main office and four branches in Coahoma County (1970 

population 40,447, down 12.5 percent since 1960). Coahoma County is on the 

western border of Mississippi adjacent to the State of Arkansas, and about 

midway between Greenville and Memphis. Its economy is predominantly agricultural w ith some light manufacturing located in the city o f Clarksdale (population 21,673) and vicinity. The county's median household buying level 

($4,590) is 33.7 percent below the statewide level ($6,928). Coahoma also has 

one recently established office in South Haven, DeSoto County, some 78 miles 

north of Clarksdale, directly adjacent to the city limits of Memphis, Tennessee. 

DeSoto County (1970 population 35,885) is a rapidly growing residential 

county which has been participating in the spread of Memphis southward. Its 

income levels are substantially higher than those in Coahoma County, but still 

below those of the State as a whole.

Effects of the proposed merger would be most immediate and direct in two 

areas: one w ithin approximately 15 miles of Clarksdale, and the other being 

approximated by DeSoto County. In the former market, 4 commercial banks 

w ith 17 offices, serving a population estimated at 46,200, held area IPC deposits of $103 m illion in mid-1974. Coahoma had 34.3 percent of such deposits. Bank of Clarksdale held 47.8 percent; First National Bank of Clarksdale,

17.2 percent; and The Bank of Bolivar County held the remainder of these 

deposits. Grenada Bank's nearest offices are 19 and 20 miles away, and while 

there is some overlapping of local markets, the volume of deposits held by 

these Grenada Bank offices indicates that no significant existing com petition 

between Grenada Bank and Coahoma would be eliminated by the proposed 

merger. In DeSoto County, 7 commercial banks have 15 offices, w ith Coahoma 

having the fifth largest share (5.2 percent) of local IPC deposits. Grenada 

Bank's nearest office is 75 miles away, and it does not compete in the DeSoto 

market.

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Each of the merging banks, under Mississippi law, may enter de novo the 

primary trade area of the other, but there appears to be little likelihood that 

competition between them w ill increase through such expansion in the foreseeable future. For Grenada Bank, the Clarksdale-Coahoma County area offers 

little attraction fo r de novo entry. The city of Clarksdale has a total of 7 

commercial bank offices serving 21,673 people; the population of Coahoma 

County decreased significantly during the 1960s, and the county's median 

buying level is one of the lowest in Mississippi. For its part,. Coahoma, having 

established only one branch since 1967, would be unlikely to favor de novo

entry into Grenada Bank areas in which it would encounter such strong competition.

In its maximum potential market, which under State law is that region in 

Mississippi lying w ithin a radius of 100 miles of its main office, Grenada Bank 

controls 5.8 percent of the IPC deposits held on June 30, 1974, by all area 

offices of the 108 commercial banks now represented in this market. The 

proposed merger would increase this share to 7.3 percent of such deposits.

From the foregoing data it appears that the proposed merger would have no 

significant effect on com petition in any relevant area; and thus, 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 Grenada Bank 

and Coahoma have adequate financial and managerial resources, as would the 

resultant bank.

Convenience and Needs o f the Com m unity to be Served. The merger would 

provide businessmen, farmers, and residents of Coahoma's trade area w ith the 

services of one of the State's major banks. Greater lendable funds and a lending 

lim it increased six-fold over that of Coahoma should stimulate com petition 

among the banks in Clarksdale, and Grenada Bank would also represent a 

strong new competitive force in DeSoto County to the north.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands

of dollars)

B anking Offices

I n

operation

T o be

operated

Bank of Manalapan

Manalapan Township, New Jersey 

(change title to Brunswick Bank 

and Trust Company)

8,967 1 3

to merge with

New Brunswick Trust Company

New Brunswick

27,795 2

Summary report by A ttorney General, March 18, 1975

We have reviewed this proposed transaction and conclude that it would not 

have a substantial competitive impact.

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Basis fo r Corporation approval, September 16, 1975

Bank of Manalapan, Manalapan Township, Monmouth County, New Jersey 

("Manalapan Bank"), a State nonmember insured bank w ith total resources o f 

$8,967,000 and total IPC deposits of $7,194,000, 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 New Brunswick Trust Company, 

New Brunswick, New Jersey ("T rust Company"), w ith total resources of 

$27,795,000 and IPC deposits of $20,352,000. The banks would merge under 

the charter of Manalapan Bank w ith the title "Brunswick Bank and Trust 

Company," and the tw o existing offices and one approved but unopened office 

of Trust Company would be operated as branches of the resultant bank. Trust 

Company has a small trust department and Manalapan Bank has also applied 

for consent to exercise trust powers.

Competition. Manalapan Bank operates its main office and an auxiliary 

drive-in facility in a shopping center on Route 9 in Manalapan Township 

(population 14,049). It serves an area of some 60 square miles in western 

Monmouth County w ith an estimated population of 42,000. As a result of a 

change in its basic economy from rural to residential and commercial, this 

section recorded rapid growth between 1960 and 1970. The median household 

buying level fo r Monmouth County was $14,892 in 1974, slightly above the 

State median of $14,680.

Trust Company operates its main office and one branch in New Brunswick 

(population 41,885) and has approval to establish a branch in South Brunswick 

Township, southwest of New Brunswick. The area that Trust Company presently serves includes the city o f New Brunswick and the northern part of North 

Brunswick Township. The median household buying level for New Brunswick 

was $11,534 in 1974, 21 percent below the State median.

The closest offices of the two banks are 13 miles apart and there are several 

intervening banking offices. Neither bank originates any appreciable volume of 

business from the local area served by the other. Furthermore, each bank is the 

smallest institution in its local market. The resultant bank would continue to 

be the smallest in the western Monmouth County area served by Manalapan 

Bank and the second smallest in the New Brunswick area. In the western 

Monmouth County market, where the impact of the proposed merger would be 

most immediate and direct, 16 offices of 7 commercial banks operate. As of 

June 30, 1974, Manalapan Bank held 5.4 percent of area IPC deposits, the 

third largest share. The two larger banks, Colonial First National Bank and The 

Central Jersey Bank and Trust Company, dominated the market w ith a total of 

nine offices and 85.1 percent of area IPC deposits. The remaining four com ­

petitors, however, were all subsidiaries of multibank holding companies, each 

of which had total IPC deposits in excess of $1 billion. Given these facts, the 

proposed merger would eliminate no substantial existing com petition between 

Manalapan Bank and Trust Company, nor would it affect in any perceptible 

way the commercial bank structure in the two banking markets which the 

resultant bank would serve.

New Jersey law allows commercial banks to branch statewide, subject to 

certain home office protection restrictions. Manalapan Bank, due to limited 

resources and a lack of branching experience, is not likely to expand into the 

Brunswick area through de novo branching in the foreseeable future. It is 

equally unlikely that Trust Company would branch de novo into Manalapan

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90 FEDERAL DEPOSIT INSURANCE CORPORATION

Bank's market where extensive branch networks of several of the State's largest 

banks are already established and the population per commercial bank office in 

the area is already low (one for each 2,625 persons). It is thus doubtful that 

the proposed merger would eliminate any significant potential for increased 

competition between the two banks in the foreseeable future.* Moreover, 

several larger banks and holding company affiliates must be viewed as more 

likely to branch de novo should attractive opportunities arise in either market.

Neither of the participating banks is affiliated w ith a holding company, 

while many of the banks w ith which they compete are subsidiaries of some of 

the largest m ultibank holding companies in New Jersey. The proposed merger 

should improve the competitive stance of the resultant bank vis-a-vis these large 

commercial banks.

W ithin the State, the resultant bank would hold less than 0.2 percent of all 

commercial bank IPC 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. Both Manalapan 

Bank and Trust Company have adequate financial and managerial resources and 

favorable prospects fo r the future, as would the resultant bank.

Convenience and Needs o f the Com m unity to be Served. The proposed 

merger would extend trust services to Manalapan Bank's customers and would 

increase lending lim its to all customers of the resultant bank. It would also 

provide businesses and residents in western Monmouth County w ith an additional source fo r many commercial bank services, thereby strengthening com ­

petition w ith the larger statewide banks in the market.

For these reasons, the Board of Directors has concluded that both Manalapan Bank's application to merge w ith Trust Company and its application to 

exercise trust powers upon consummation of the merger should be approved.

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

To be

operated

First Verm ont Bank and Trust Company

Brattleboro, Vermont

168,113 14 15

to merge with

Bank of Waterbury

Waterbury

11,011 1

* F o r purposes o f assessing the com petitive im pact o f this proposal under the Bank Merger 

A ct, the Board o f D irectors, in accordance w ith past practice, has ignored the acquisition 

of stock co n tro l o f Manalapan Bank by the co n tro l ow ner o f T ru st Com pany in Septem ­

ber 1973.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 91

Summary report by A ttorney General, July 18, 1975

First Vermont's office in Barre is located about 18 miles southeast of Waterbury. Several large banks operate offices in intervening Montpelier. While the 

application does not provide inform ation sufficient to fu lly evaluate the extent 

to which First Verm ont draws deposits and loans from Waterbury Bank's 

service area, it appears unlikely that the former is a substantial com petitor for 

business in the Waterbury area. Thus, we believe that the proposed merger 

would eliminate no more than a limited amount of existing competition between the tw o institutions.

First Verm ont possesses the resources to establish de novo branches in the 

area served by Waterbury Bank. While the proposed merger could thus elim inate some potential com petition, we do not believe that its overall competitive 

effect would be significantly adverse.

Basis for Corporation approval, September 16, 1975

First Verm ont Bank and Trust Company, Brattleboro, Verm ont ("F irst 

V erm ont"), a State nonmember insured bank (total resources $168,113,000; 

total IPC deposits $135,972,000), 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 Bank of Waterbury, Waterbury, Verm ont (total 

resources $11,011,000; total IPC deposits $8,519,000). The banks would 

merge under the charter and title of First Verm ont and, as an incident to the 

merger, the 3 approved offices of Bank of Waterbury would be established as 

branches of the resultant bank, which would then have a total of 18 approved 

offices.

Competition. First Verm ont operates 14 offices: its main office and 2 

branches in Windham County, 3 branches in Bennington County, 5 in Rutland 

County, 2 in Washington County, and 1 in Windsor County. First Verm ont has 

supervisory approval for one additional office in Windham County. This bank 

is the third largest of Vermont's 33 commercial banks, w ith 12.3 percent of 

their I PC deposits.

Bank of Waterbury has its main office in Waterbury, Washington County 

(1970 population 47,659, up 11.2 percent since 1960), and maintains a limited 

service facility in Stowe, in Lamoille County (1970 population 13,309, up 20.7 

percent since 1960), 10 miles north of its main office. It has supervisory 

approvals fo r a branch to be established w ithin Waterbury. The primary service 

area of Bank of Waterbury comprises all communities w ithin a radius o f 12 

road-miles of Waterbury, including Montpelier (population 8,609), the State's 

capital. The population of this local market increased some 4.7 percent during 

the 1960s to an estimated 21,300. Tourism and dairy farming are economic 

factors in this market; additionally, Stowe is a leading ski resort and a yearround recreation area and Montpelier is the home of a major life insurance 

company. Median buying levels of both Washington County ($9,752) and 

Lamoille County ($9,378) in 1974 were somewhat below those o f the State as 

a whole ($10,160). Bank of Waterbury has the fourth largest share (9.9 percent) of the aggregate IPC deposits held by area offices of the six commercial 

banks represented in its local market. Two Burlington-based commercial banks 

(largest and second largest in the State) and a bank headquartered in Brattleboro (fourth largest in the State) hold the three largest shares of such deposits.

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92 FEDERAL DEPOSIT INSURANCE CORPORATION

First Vermont's closest office is in Barre, some 19 road-miles southeast of 

Waterbury. The city of Montpelier lies between Waterbury and Barre, and the 

commercial bank structure of this city minimizes existing com petition between 

First Verm ont and Bank of Waterbury. It is unlikely that any significant existing competition between the tw o banks would be eliminated by their proposed 

merger.

Vermont law permits statewide de novo merging and branching. Bank of 

Waterbury, through the years, has been under conservative management. Its 

recently approved Waterbury branch would be the first to be established since 

the Stowe facility was opened in 1931. Presently the bank has neither managerial resources, experience, nor inclination to establish de novo branches in 

areas in which First Verm ont is competing.

First Vermont, on the other hand, has opened several de novo offices in 

recent years and has the resources, the management, and the inclination to 

establish additional branches. There is little likelihood, however, that it would 

find the market served by Bank of Waterbury attractive fo r de novo entry— a 

market whose population growth substantially lags that of the State, whose 

buying levels are below statewide averages, and in which each commercial bank 

office presently serves an average of 2,360 inhabitants. It thus appears unlikely 

that the proposed merger would eliminate any significant potential for increased com petition between the two banks in the future as a result of their de

novo branching. Moreover, w ith other large banks serving northern Verm ont 

and located in Montpelier and Barre, any future de novo branching opportunities in or around Waterbury that appear feasible should attract other banks 

capable of competing w ith First Vermont.

A fter the merger, First Vermont would continue to rank third largest o f all 

commercial banks in Vermont, w ith 13.1 percent of their aggregate IPC deposits. !n this relatively unconcentrated State, the first and second ranking 

commercial banks, both headquartered in Burlington, hold 16.6 percent and

13.3 percent of such deposits, respectively.

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 First Vermont 

and Bank of Waterbury have satisfactory financial and managerial resources. 

Future prospects of the resultant bank would be satisfactory.

Convenience and Needs o f the Community to be Served. In the town of 

Waterbury and its environs, the-merger would make available to the public a 

greater supply of lendable funds, a higher lending lim it, data processing facilities, and broadened trust services. In addition, the proposed merger would 

encourage greater competition among the large branch banks serving northern 

Vermont, thus benefiting residents and businesses in Washington, Lamoille, 

and other nearby counties.

In view of the above, the Board of Directors has concluded that approval of 

the application is warranted.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 93

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

To be

operated

First Financial Bank (in organization) 

Nashua, New Hampshire 

(change title to Colonial Trust Company)

800 2

to merge with

Colonial Trust Company

Nashua

11,577 2

Summary report by A ttorney General, May 15, 1975

The proposed merger is part of a plan through which Colonial Trust Company would become a subsidiary of First Financial Group of New Hampshire, 

Inc., a bank holding company. The instant merger, however, would merely 

combine an existing bank w ith a nonoperating institution; as such, and w ith o u t 

regard to the acquisition of the surviving bank by First Financial Group of New 

Hampshire, Inc., it would have no effect on competition.

Basis for Corporation approval, September 30, 1975

Pursuant to sections 5 and 18(c) and other provisions of the Federal Deposit 

Insurance Act, applications have been filed fo r Federal deposit insurance fo r 

First Financial Bank, Nashua, New Hampshire (New Bank), a proposed new 

bank in organization, and for consent to its merger w ith Colonial Trust Company, Nashua, New Hampshire, a State nonmember insured bank w ith total 

resources of $13,044,000 and IPC deposits of $9,986,000 as of December 31, 

1974, under the charter of New Bank and w ith the title "Colonial Trust Company." The resulting bank w ill operate from the tw o existing offices of Colonial Trust Company.

The new bank form ation and its immediate merger w ith Colonial Trust 

Company are designed solely to effectuate a plan whereby Colonial Trust 

Company would become a w holly owned subsidiary of First Financial Group 

of New Hampshire, Inc., a registered bank holding company. The Board of 

Governors of the Federal Reserve System approved the acquisition o f Colonial 

Trust Company by First Financial Group on A pril 22, 1975, after full consideration of the competitive and banking factors involved. New Bank will not be in 

operation as a commercial bank prior to the merger, but subsequent thereto it 

will operate the same business as Colonial Trust Company at its tw o existing 

locations. The merger proposal w ill not, per se, change the competitive structure of commercial banking in the relevant Nashua market served by Colonial 

Trust Company or affect the banking services which the latter has provided in 

the past. First Financial Group has agreed, however, to infuse Colonial Trust 

Company w ith new management and to inject $800,000 in capital. All factors 

required by law to be considered by the Corporation in connection w ith each 

application are favorably resolved.

Based on the foregoing, the Board of Directors has concluded that approval 

of the applications is warranted.

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94 FEDERAL DEPOSIT INSURANCE CORPORATION

Resources

l\n

Banking Offices

\ in

thousands

of dollars)

I n

operation

T o be

operated

Keystone Bank

Lower Burrell, Pennsylvania

57,481 14 18

to merge with

Commercial Bank & Trust Company

Pittsburgh

68,947 4

Summary report by A ttorney General, December 16, 1974

Keystone Bank and Commercial Bank are headquartered about 16 miles 

apart. Keystone Bank, however, operates four offices in the downtown Pittsburgh area which are w ithin 2 miles of either of Commercial Bank's two 

downtown Pittsburgh offices. The nearest offices of the parties, both in downtown Pittsburgh, are separated by less than 1/2 mile. Thus, it appears this 

acquisition would eliminate some existing com petition in the Pittsburgh area. 

However, it does not appear that com petition in commercial banking would be 

significantly increased in that commercial banking market; the resulting bank 

would hold approximately 1 percent of Pittsburgh area deposits.

The proposed transaction would eliminate some existing com petition and 

slightly increase concentration in commercial banking in the Pittsburgh area.

Basis fo r Corporation approval, September 30, 1975

Keystone Bank, Lower Burrell, Pennsylvania, a State nonmember insured 

bank w ith total resources of $57,481,000 and total IPC deposits of 

$48,891,000, 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 Commercial Bank & Trust Company, Pittsburgh, Pennsylvania ("C om ­

mercial Bank"), a State nonmember insured bank w ith total resources of 

$68,947,000 and total IPC deposits of $50,055,000. The 4 existing offices and 

1 authorized but unopened office of Commercial Bank would be operated as 

branches of Keystone Bank, increasing the number of its authorized offices to 

20. Consent is also sought to exercise trust powers and to issue and retire 

subordinated capital notes.

Competition. Keystone Bank is headquartered in Westmoreland County, 

part of the Pittsburgh SMSA, and operates 13 branches which serve 5 separate 

and widely dispersed sections of the Pittsburgh area, ranging from a rural and 

agricultural section to the highly industrial and commercial city of Pittsburgh. 

Besides eight operating and one additional unopened office in Allegheny 

County, Keystone Bank is represented in Armstrong, Butler, and Somerset 

Counties as well as its headquarters county of Westmoreland.

Com m ercial Bank is headquartered in Pittsburgh (1970 population 

520,117), and it operates three branches: one each in Allegheny, Washington, 

and Westmoreland Counties. It also has approval to establish a de novo branch 

southeast of Pittsburgh in Westmoreland County.

The area w ithin which the competitive effects of the proposed transaction 

would be most direct and immediate can be approximated by the Pittsburgh 

SMSA, a four-county region that includes the two counties (Allegheny and

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 95

Westmoreland) in which both Keystone Bank and Commercial Bank have 

offices. As of June 30, 1974, 30 commercial banks were operating a total of 

419 offices in this banking market, which is dominated by the 4 largest banks 

in Pittsburgh: Mellon Bank, N.A., Pittsburgh National Bank, Equibank, N.A., 

and The Union National Bank of Pittsburgh. Even on a combined basis, Keystone Bank and Commercial Bank had less than 0.2 percent of the commercial 

bank IPC deposits in this market and only 14 offices.

The closest offices of Keystone Bank and Commercial Bank are located in 

downtown Pittsburgh, approximately 0.8 miles apart. Numerous other banking 

offices are also located in this densely urban area, including the administrative 

headquarters of the four largest Pittsburgh banks. While each of the proponent 

banks to some extent competes fo r business in this area, their market shares 

overall are so low, and the intensity of com petition from the four large banks 

so keen, that their proposed merger is not likely to eliminate any significant 

amount of existing competition or to influence in any perceptible way the 

structure of commercial banking in the Pittsburgh SMSA.

Pennsylvania law permits Keystone Bank to branch throughout Westmoreland, Allegheny, Armstrong, Butler, Cambria, Fayette, Indiana, Somerset, and 

Washington Counties. Commercial Bank can branch in Allegheny, Beaver, 

Butler, Washington, and Westmoreland Counties. Only Beaver County would 

be excluded from the legal branching area of the resultant bank. Both banks 

have branched de novo in the past and the approval of this proposal would 

remove the possibility of increased competition developing between them 

through similar expansion in the future. A ny significant future com petition 

between them from this source, however, seems remote. Keystone Bank has 

confined its office expansion mainly to areas north and northeast of Pittsburgh 

while Commercial Bank's branching has been to the south and southeast of 

Pittsburgh. Furthermore, neither bank is likely to have much competitive 

impact through de novo branching in the city of Pittsburgh where the four 

large banks are so entrenched. The proposed merger, in fact, may subject these 

four large banks to new com petition in the future as the resultant bank takes 

advantage of de novo branching opportunities in the SMSA which today are 

going largely by default to the four large Pittsburgh banks.

While a small degree of existing com petition and some potential for increased com petition between Keystone Bank and Commercial Bank would be 

eliminated by the proposed merger, the effect in the relevant market would be 

negligible and there would continue to be an adequate number of banking 

alternatives in the SMSA.

The Board of Directors, accordingly, 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. While both banks 

have shown certain weaknesses in recent years, generally speaking, one has 

strengths where the other is weak. The financial and managerial resources of 

the resultant bank are considered satisfactory, as are its future prospects.

Convenience and Needs o f the Com m unity to be Served. The residents and 

businessmen of the Pittsburgh SMSA would benefit from an institution w ith 

greater financial resources and a lending lim it of almost $1 m illion. Trust 

services, automated applications, and equipment leasing services would become

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

available to Keystone Bank's customers. The resultant bank would provide a 

larger, more diversified banking alternative which should in time be able to 

compete more aggressively w ith the market leaders.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

fin

Banking Offices

I I n

thousands

of dollars)

I n

operation

To be

operated

Salem Bank and Trust Company

Goshen, Indiana

106,238 5 6

to merge with

Exchange State Bank

Wakarusa

15,069 1

Summary report by Attorney General, November 4, 1975

Applicant's New Paris branch is located about 11 miles southeast of Bank 

and Applicant's four Goshen offices are about 13 miles northeast of Bank. A ll 

are w ithin a radius of about 13 miles from the city of Elkhart, the county seat 

and major population center of Elkhart County.

The proposed merger w ill eliminate some existing com petition between the 

parties and slightly increase concentration in commercial banking in Elkhart 

County. Accordingly, we conclude that the proposed transaction would have 

some adverse competitive effects.

Basis fo r Corporation approval, November 3, 1975

Salem Bank and Trust Company, Goshen, Indiana ("Salem Bank"), a State 

nonmember insured bank w ith total resources of $106,238,000 and total IPC 

deposits of $79,820,000, 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 Exchange State Bank, Wakarusa, Indiana ("Exchange 

Bank"), also a State nonmember insured bank, w ith total resources of 

$15,069,000 and total IPC deposits of $12,326,000, under the charter and title 

of Salem Bank. As an incident to the merger, the sole office of Exchange Bank 

would become the Wakarusa Branch of the resultant bank, increasing the 

number of its offices to six.

Competition. Salem Bank operates its main office and tw o branches in the 

city of Goshen, a branch at Millersburg, and a branch at New Paris. All offices 

are in Elkhart County which is located east of South Bend and just south of 

the Michigan border in north-central Indiana. Exchange Bank operates its sole 

office in the farming com m unity of Wakarusa (1970 population 1,160) in 

western Elkhart County, approximately 12 road-miles southwest of Goshen 

and 10 miles south of the city of Elkhart.

Elkhart County has a balanced economy w ith both agriculture and manufacturing contributing to the broad economic base. The population of the

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 97

county in 1970 was 126,529, an 18.5 percent increase over the 1960 population. The city of Elkhart, w ith a 1970 population of 43,152, is the county's 

largest city and chief commercial and industrial center. Goshen, the county 

seat and second largest city, had a 1970 population of 18,004, which represented a 31.2 percent increase over 1960. Wakarusa's 1970 population was 

relatively unchanged from the 1960 figure. The 1974 median household buying 

level fo r the county was $13,798, substantially higher than the State median of 

$12,555.

The effect of the proposed merger would be limited to Elkhart County, 

which is the legal branching and merging area of the tw o banks involved. Saiem 

Bank, because of Goshen's central location, serves all of Elkhart County, while 

Exchange Bank's market appears to be limited to the western third of the 

county. While Exchange Bank draws most of its business from a distinct local 

area, there is some degree of overlap and some existing com petition between 

the banks. However, the dollar volume of this existing com petition is small; 

three offices of the county's tw o largest banks are located 6 miles south of 

Wakarusa in Nappanee and tw o offices of these same banks are located 7 miles 

north in Concord Township. Twelve miles separate the nearest offices of Salem 

Bank and Exchange Bank, but the area is sparsely populated and served by a 

mediocre highway system. There is no direct access road between any office of 

Salem Bank and Exchange Bank. While the proposed merger would eliminate 

some existing com petition, it is not considered significant in amount.

Indiana law provides home office protection; therefore, neither of the banks 

involved in this proposal could branch de novo into the other's headquarters 

city. The most significant area of overlap between Exchange Bank and Salem 

Bank occurs around the city of Elkhart which is closed to de novo entry by the 

subject banks. Exchange Bank lacks the experience and the financial and managerial resources, in any event, to be an effective com petitor through the 

establishment of de novo branches in the areas served by Salem Bank. De novo

entry by Salem Bank into the area surrounding Wakarusa now served by Exchange Bank appears unlikely in view of the limited population of the Wakarusa area. It thus seems unreasonable to expect significant future com petition 

to develop between Salem Bank and Exchange Bank through such de novo

branching.

Elkhart County banking is dominated by First National Bank and St. Joseph 

Valley Bank, both headquartered in the city of Elkhart. They operate a total of 

29 offices and together control 67 percent of the county's $433 m illion IPC 

deposits. Salem Bank is the third largest of eight commercial banks in the 

county and controls 17.1 percent of these deposits. Exchange Bank holds 2.7 

percent o f this market, while four other banks (including an inactive private 

bank also headquartered in Wakarusa) hold in the aggregate 13.2 percent of the 

IPC deposits. The resultant bank's 19.8 percent share of such deposits would 

not change Salem Bank's standing in the market, nor is it likely that the 

proposed merger would perceptibly change the present structure o f commercial 

banking in the county.

Under the 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 financial and

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98 FEDERAL DEPOSIT INSURANCE CORPORATION

managerial resources and future prospects of Salem Bank and of the resultant 

bank are regarded as satisfactory. The proposal w ill serve to provide Exchange 

Bank w ith needed managerial resources, and its future prospects appear to be 

more favorable as part of the resultant bank than as an independent entity.

Convenience and Needs o f the Community to be Served. The principal 

benefits of the proposed merger would accrue to the customers of Exchange 

Bank who would have a greater amount of lendable funds at their call, a 

significantly increased lending lim it, automated banking, and a broader variety 

of trust services.

Based on the foregoing inform ation, the Board of Directors has concluded 

that approval of the application is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

I n

operation

To be

operated

Bank of Virginia-Potomac

Fairfax County, Virginia

175,702 28 32

to merge with

Bank o f Virginia-Fredericksburg

Fredericksburg

19,630 4

Summary report by Attorney General, August 22, 1975

The merging banks are both majority-owned subsidiaries of the same bank 

holding company. As such, their proposed merger is essentially a corporate 

reorganization and would have no effect on competition.

Basis fo r Corporation approval, November 3, 1975

Bank of Virginia-Potomac, Fairfax County, Virginia, a State nonmember 

insured bank w ith total resources of $175,702,000 and total IPC deposits of 

$129,934,000, 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 Bank of Virginia-Fredericksburg, 

Fredericksburg, Virginia, w ith total assets of $19,630,000 and total IPC deposits of $14,835,000. As an incident to the merger, the 4 offices of Bank of 

Virginia-Fredericksburg would be established as branches of the resulting bank, 

increasing to 32 the number of its offices.

This proposed transaction is designed solely as a means by which Bank of 

Virginia Company, Richmond, Virginia, a registered bank holding company, 

can consolidate its operations in the counties of Arlington, Fairfax, and Prince 

William and in the independent cities of Alexandria, Falls Church, Fredericksburg, and Manassas, Virginia. Both Bank of Virginia-Potomac and Bank of 

Virginia-Fredericksburg are owned by Bank of Virginia Company and this 

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.

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B A N K A BS O R P TIO N S A PP R O V E D BY TH E C O R P O R A T IO N 99

All other factors requiring consideration are favorably resolved.

On the basis of the foregoing inform ation, the Board of Directors has concluded that approval of the application is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

T o be

operated

The Peoples Bank and Trust Company

Tupelo, Mississippi

106,398 16 18

to merge with

Bank of Pontotoc

Pontotoc

15,610 2

Approved under emergency provisions. No report requested from the 

A ttorney General.

Basis fo r Corporation approval, November 26, 1975

The Peoples Bank and Trust Company, Tupelo, Mississippi, a State nonmember insured bank w ith total resources of $106,398,000 and total IPC 

deposits of $79,725,000, has applied, pursuant to section 18(c) of the Federal 

Deposit Insurance Act, for the Corporation's prior consent to merge w ith Bank 

of Pontotoc, Pontotoc, Mississippi, w ith total resources of $15,610,000 and 

total IPC deposits of $13,392,000. Incident to the proposed merger, the 2 

offices of Bank of Pontotoc would be established as branches of the resulting 

bank, thereby increasing the number of its offices to 18.

The Board of Directors has determined that the Corporation must act 

immediately in order to prevent the probable failure of Bank of Pontotoc. On 

the basis of this finding, the proposed transaction is approved.

Under section 18(c)(6) of the Federal Deposit Insurance Act, the transaction may be consummated immediately.

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

To be

operated

Sterling Trust Company

Johnson, Vermont

9,921 2 4

to acquire the assets and assume

the deposit liabilities of

The Enosburg Falls National Bank

Enosburg Falls

7,354 2

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

Summary report by A ttorney General, November 4, 1975

We have reviewed this proposed transaction and conclude that it would not 

have a substantial competitive impact.

Basis fo r Corporation approval, November 26, 1975

Sterling Trust Company, Johnson, Verm ont ("S terling"), a State nonmember insured bank having total resources of $9,921,000 and total IPC 

deposits of $8,354,000, 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 o f and assume liability to pay deposits made in The 

Enosburg Falls National Bank, Enosburg Falls, Verm ont ("Enosburg National"), w ith total resources of $7,354,000 and total IPC deposits o f 

$6,591,000. The banks would effect the proposed transaction under the 

charter and title of Sterling and, incident to the transaction, the tw o offices of 

Enosburg National would become branches of the resultant bank, giving it a 

total of five authorized offices.

Competition. Sterling operates two offices in the northwest part of Vermont: its main office in Johnson, in central Lamoille County, and a branch in 

Jericho, in central Chittenden County, 23 road-miles southwest of the main 

office. A second branch has been approved, to be established in Hardwick, in 

Caledonia County, 19 road-miles southeast of the main office. In this section 

of Vermont, agriculture, although of decreasing importance in recent years, 

continues to lend significant economic support, supplemented by tourism and 

winter recreation centering in Stowe and mountainous southwestern Lamoille 

County, one of the leading ski areas in the Northeast. The Jericho area is 

developing as a residential suburb of Burlington, Vermont's largest city, which 

is 16 miles to the west. Enosburg National has its main office in the village of 

Enosburg Falls (population 1,266) and a branch in Montgomery Center (population 651), both locations being in the northeast part of Franklin County. 

This county lies north of Lamoille and Chittenden Counties and adjoins the 

Canadian border.

The area w ithin which the competitive effects of the proposed transaction 

would be most immediate and direct consists of the northeast quadrant of 

Franklin County, extending east from Enosburg Falls some 20 road-miles to 

the edge of Orleans County, north some 12 road-miles to the Canadian border, 

and both west and south some 10 road-miles to include the towns o f Sheldon 

and Bakersfield. Three commercial banks have a total of four offices in this 

local market serving approximately 9,850 people and holding, on June 30, 

1974, aggregate IPC deposits of $20,260,000. The Howard Bank, the second 

largest commercial bank in the State, had 34.6 percent of such deposits at its 

branch in Enosburg Falls; Enosburg National had 34.4 percent; and FranklinLamoille Bank, Vermont's sixth largest commercial bank, had the remaining 31 

percent of such deposits at its branch in Richford, a town 14 road-miles northeast of Enosburg Falls. Sterling, whose nearest office is more than 25 miles 

away over sparsely populated mountainous terrain, is not represented in this 

market.

Although Sterling's northern Lamoille County market abuts Enosburg 

National's market, there is no significant market area overlap. Two other banks 

have offices between the closest offices of Sterling and Enosburg National, and

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B A N K A BS O R P TIO N S A PP R O V E D BY TH E C O R P O R A T IO N 101

neither appears to draw much business from areas served by the other. Accordingly, the proposed transaction would not eliminate any significant existing 

competition between the tw o proponents.

Enosburg National's market, is one of sparse and declining population and 

below-average buying levels (Franklin County's 1974 median household buying 

level of $8,438 was 16.9 percent below the State median) and the State's 

second largest commercial bank has an office in Enosburg Falls. In view of 

these factors, Sterling would be unlikely to find this market attractive fo r de

novo entry. For its part, Enosburg National has an aged management and no 

incentive fo r de novo expansion. Thus, the proposed transaction is unlikely to 

foreclose any significant potential for increased com petition between the two 

banks in the near future.

On a statewide basis, the tw o banks combined would control less than 1.3 

percent o f aggregate commercial bank deposits.

Based on the foregoing, the Board of Directors has concluded 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. Both proponents 

have acceptable financial resources for the amount of business they presently 

transact. Managerial resources of Sterling are acceptable. Enosburg National has 

a significant managerial and management succession problem and its future 

prospects, as an independent organization, appear to be unfavorable. Future 

prospects of the resultant bank, w ith an infusion of $ 2 0 0 ,0 0 0 of additional 

capital funds, would be favorable.

Convenience and Needs o f the Com m unity to be Served. Banking customers 

of the Enosburg-Montgomery area would be served by a larger bank w ith a 

stronger, more aggressive management, a higher lending lim it, and a greater 

supply of lendable funds. Computerized services would be available at Enosburg National's offices. The resultant bank should stimulate com petition w ith 

The Howard Bank and Franklin-Lamoille Bank to the advantage o f farmers, 

businessmen, and residents of the market area as a whole.

Based on the foregoing, the Board o f Directors has concluded that approval 

of the application is warranted.

Resources Banking Offices

(in

thousands

of dollars)

In

operation

To be

operated

First Virginia Bank o f Tidewater

N orfolk, Virginia

116,559 23 26

to merge with

First Virginia Bank of Nansemond

Suffolk

8,999 3

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102 F E D E R A L DEPOSIT INS U RA N C E C O R P O R A T IO N

Summary report by A ttorney General, November 4, 1975

The merging banks are both w holly owned subsidiaries of the same bank 

holding company. As such, their proposed merger is essentially a corporate 

reorganization and would have no effect on competition.

Basis fo r Corporation approval, November 26, 1975

First Virginia Bank of Tidewater, N orfolk, Virginia ("Tidewater Bank"), a 

State nonmember insured bank w ith total resources of $116,559,000 and IPC 

deposits of $90,659,000, 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 Virginia Bank of Nansemond, Suffolk, Virginia 

("Nansemond Bank"), a State nonmember insured bank w ith total resources of 

$8,999,000 and IPC deposits of $7,037,000, under the charter and title of 

Tidewater Bank. The three offices of Nansemond Bank will be operated as 

branches of the resulting bank.

This proposed transaction is designed solely as a means by which First 

Virginia Bankshares Corporation, Falls Church, Virginia ("H olding Company"), 

a registered bank holding company, can consolidate its operations in the Tidewater Virginia area. Both Tidewater Bank and Nansemond Bank are owned by 

Holding Company, and this proposed transaction would not in itself change the 

structure of com petition in the area nor should it affect the banking services 

that are provided.

The Board of Directors is of the opinion that the proposed transaction 

would not, in any section of the country, substantially lessen com petition, 

tend to create a monopoly, or in any other manner be in restraint of trade.

All other factors requiring consideration are favorably resolved.

On the basis of the foregoing inform ation, the Board of Directors has concluded that approval of the application is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

I n

operation

T o be

operated

State Bank fo r Savings

Hartford, Connecticut

206,695 5 6

to merge with

Canaan Savings Bank

North Canaan

23,571 1

Summary report by Attorney General, September 8 , 1975

We have reviewed this application and conclude that the proposed transaction would not have a substantial competitive impact.

Basis fo r Corporation approval, November 28, 1975

State Bank for Savings, Hartford, Connecticut, an insured mutual savings bank w ith total resources of $206,695,000 and total deposits of

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B A N K ABS O R P TIO N S A PP R O V E D BY TH E C O R P O R A T IO N 103

$192,082,000, 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 Canaan Savings Bank, North Canaan, Connecticut, also an insured 

mutual savings bank, w ith total resources of $23,571,000 and total deposits of 

$21,329,000, under the charter and w ith the title "State Bank for Savings." 

The sole office of Canaan Savings Bank would be established as a branch of the 

resultant bank, increasing the number of its offices to seven, including one 

approved but unopened branch.

Competition. State Bank fo r Savings has its main office in Hartford, two 

branches in suburban West Hartford, one office in Glastonbury, another suburb 

of Hartford, and one office in Enfield approximately 21 road-miles north of 

the main office. It also has the necessary supervisory approvals to establish an 

office in Simsbury, some 15 miles northwest of Hartford. A ll of these offices 

are in Hartford County, in central Connecticut. Canaan Savings Bank has its 

sole office in North Canaan, in Litchfield County, in extreme northwestern 

Connecticut.

The competitive impact of the proposed merger would be most direct and 

immediate w ithin the primary trade area of Canaan Savings Bank, a market 

which comprises communities located w ithin some 18 road-miles of North 

Canaan, including Great Barrington, Massachusetts, to the north; M illerton, 

New York, to the southwest; and Winsted, Connecticut, to the southeast. 

Winsted is an Industrial city; the remainder of the market is largely rural, 

agricultural, and partly a State forest. The 1970 population of this market, 

estimated at 42,225, increased some 10.3 percent during the 1960s. The comparable increase fo r Connecticut as a whole was 19.6 percent.

In this local market, there are 10 offices of 8 mutual savings banks, w ith no 

other th rift institution being represented. Great Barrington Savings Bank has 

38.3 percent of the $145.1 m illion aggregate deposits held by the market's 10 

savings bank offices. Winsted Savings Bank has 20.6 percent of such deposits; 

Mechanics Savings Bank of Winsted, 17.6 percent. Canaan Savings Bank has 

14.1 percent, the fourth largest share. State Bank for Savings has no office in 

this market, and its proposed branch in Simsbury would be 38 miles away. The 

latter's closest office is located in West Hartford, some 40 road-miles southeast 

of North Canaan. Neither bank draws a meaningful amount of its business from 

areas served by the other, w ith the result that approval of the proposed transaction would not eliminate any existing com petition between the tw o banks.

In addition, the merger would eliminate no significant potential for increased com petition between the tw o banks through de novo branching in the 

future. The proposed Simsbury branch of State Bank fo r Savings would operate in a market separate and distinct from that of Canaan Savings Bank. State 

Bank for Savings may not enter de novo the town of North Canaan because of 

home office protection provided by State law, nor would the environs be 

attractive for such entry. Canaan Savings Bank's market presently has a savings 

bank office for every 4,223 people— far less than the statewide ratio of 10,713 

people fo r each savings bank office on June 30, 1974— and the area's rate of 

population increase lagged significantly the statewide growth rate during the 

1960s. For its part, Canaan Savings Bank, a unit operation fo r 1 0 2 years, 

presently lacks the financial and managerial resources, as well as the inclination, to engage in de novo expansion.

The proposed transaction would constitute a geographic extension of State

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

Bank for Savings' market. The latter's position as fourth largest th rift institution in the Hartford area would remain unchanged. Upon consummation of the 

merger, State Bank fo r Savings would become the 11th largest of 102 mutual 

th rift institutions in a relatively unconcentrated State, w ith approximately 2 

percent of the aggregate deposits held at year-end 1974 by all mutual savings 

banks and insured savings and loan associations in Connecticut.

Considering 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. State Bank fo r Savings has satisfactory financial and managerial resources. Its future prospects are 

favorable. With a marginally acceptable asset structure, Canaan Savings Bank 

would have more favorable future prospects as a part of the resultant bank 

than were it to continue as an independent institution.

Convenience and Needs o f the Community to be Served. The resultant bank 

would provide services not presently available to Canaan Savings Bank customers, including a broader range of personal loan services, loans under the 

Connecticut Housing Finance A uthority program, investment accounts, a 

higher rate of interest on certain time deposits, savings bank life insurance, and 

Saturday banking hours. These added conveniences for both borrowing and 

depositing customers should provide more effective com petition to the other 

th rift institutions and the commercial banks represented in the North Canaan 

local market.

The Board of Directors, in view of the circumstances described, has concluded that approval of the application is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

I n

operation

To be

operated

Bank of Virginia-Tidewater

N orfolk, Virginia 

(change title to Bank of 

Virginia-Eastern)

132,755 14 25

to merge with

Bank of Virginia-Peninsula

Newport News

103,314 11

Summary report by A ttorney General, September 15, 1975

The merging banks are both w holly owned subsidiaries of the same bank 

holding company. As such, their proposed merger is essentially a corporate 

reorganization and would have no effect on competition.

Basis fo r Corporation approval, November 28, 1975

Bank of Virginia-Tidewater, N orfolk, Virginia ("Tidew ater"), a State nonmember insured bank w ith total resources of $132,755,000 and IPC deposits

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B A N K ABS O R P TIO N S A PP R O V E D BY TH E C O R P O R A T IO N 105

of $93,318,000, 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 Bank of Virginia-Peninsula, Newport News, Virginia ("Peninsula"), 

a State nonmember insured bank w ith total resources of $103,314,000 and IPC 

deposits of $74,221,000, under the charter of Tidewater and w ith the title 

"Bank of Virginia-Eastern." The 12 approved offices of Peninsula w ill be operated as branches of the resulting bank.

This proposed transaction is designed solely as a means by which Bank of 

Virginia Company, Richmond, Virginia ("H olding Com pany"), a m ultibank 

holding company, can consolidate its operations in York County and the 

independent cities of Chesapeake, Hampton, Newport News, N orfolk, Portsmouth, Suffolk, and Virginia Beach. Both Tidewater and Peninsula are owned 

by Holding Company, and this proposed transaction would not in itself change 

the structure of competition in the area nor should it affect the banking 

services which are provided.

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.

A ll other factors requiring consideration are favorably resolved.

On the basis of the foregoing inform ation, the Board of Directors has concluded that approval of the application is warranted.

Resources

(in

thousands

of dollars)

Ban kin g Offices

I n

operation

T o be

operated

The Citizens and Southern Emory Bank

DeKalb County, Georgia

134,146 10 12

to acquire the assets and assume

the deposit liabilities of

The Citizens and Southern Bank of Tucker

Tucker, Georgia

44,686 2

Summary report by A ttorney General, November 25, 1975

The Department of Justice filed a competitive report dated March 12, 1971, 

regarding, inter alia, an earlier effort by Applicant to acquire full control of 

Tucker Bank. The Corporation thereafter denied the application on October 5, 

1971.

The earlier, unsuccessful effort by Applicant to acquire Tucker Bank was 

part of a larger, ultim ately successful campaign by C&S National to acquire five 

banks w ith which it was affiliated through the ownership of 5 percent of the 

outstanding stock of each— a system of correspondent associate banks. The 

Corporation approved these acquisitions, while denying the application to 

acquire Tucker Bank.

A subsequent antitrust action by the Department challenging the approved 

acquisitions as violations of section 7 of the Clayton Act, and all of the existing

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106 F E D E R A L DEPO SIT IN S U R A N C E C O R P O R A T IO N

"correspondent associate" relationships (including that of Tucker Bank) as 

violations of the Sherman Act, was unsuccessful. In its opinion affirming dismissal of this case (United States v. Citizens & Southern National Bank, 422 

U.S. 8 6 (1975)), the Supreme Court concluded that the correspondent associate programs in effect w ith respect to Tucker Bank (and two other banks), 

which were likened to de facto branches whose operations were directly and 

indirectly controlled by the C&S organization, were immunized from attack 

under the Sherman A ct by a "simple conferral o f legislative amnesty." (Id, 422 

U.S. at 108.) The Court also noted that neither the D istrict Court nor the 

FDIC could find any realistic prospect that denial of the acquisitions there in 

question would lead the defendant banks to compete against one another. (Id,

422 U.S. at 1 2 1 .)

We continue to believe that there are some circumstances in which prior 

existing relationships between banks would not justify attempts at more formal 

and permanent affiliation. However, the Supreme Court's opinion relating to 

this matter compels the conclusion that the proposed transaction would not 

eliminate any significant existing or potential com petition; thus, we do not 

oppose its approval.

Basis fo r Corporation approval, December 1, 1975

The Citizens and Southern Emory Bank, DeKalb County, Georgia ("E m ory 

Bank"), a State nonmember insured bank w ith total resources of $134,146,000 

and total deposits of $113,760,000, has applied, pursuant to section 18(c) and 

other provisions of the Federal Deposit Insurance Act, for the Corporation's 

prior consent to acquire the assets of and assume liability to pay deposits made 

in The Citizens and Southern Bank of Tucker, Tucker, Georgia ("Tucker 

Bank"), also a State nonmember insured bank, w ith total resources of 

$44,686,000 and total deposits of $35,463,000.* Emory Bank has also applied 

under section 18(d) of said A ct fo r consent to establish the tw o offices of 

Tucker Bank as branches of the resulting bank.

Background. Tucker Bank, established in 1919, became affiliated w ith the 

C&S system early in 1965 when Citizens and Southern Holding Company, 

Savannah, Georgia ("C&S H olding"), acquired 5 percent of Tucker Bank's 

outstanding capital stock while 75 percent of such stock was acquired by 

officers and staff of the C&S system, their associates, the C&S P rofit Sharing 

Fund, and several directors chosen by the system fo r Tucker Bank. A t the time 

of this affiliation, Tucker Bank had deposits approximating $4 m illion— about

5 percent of DeKalb County's commercial bank deposits— and operated one 

office. By virtue of the transaction, the C&S system increased its control over 

DeKalb County commercial bank deposits to approximately 29 percent and its 

share of the county's commercial bank offices to approximately 26 percent. 

The State of Georgia, at the time, did not perm it direct branching by Citizens 

and Southern National Bank of Atlanta into the DeKalb County suburbs. The 

only means of expansion then available to the C&S system in DeKalb County 

was to sponsor newly formed banks or to acquire control of existing banks, so

* Financial data as o f June 30, 1975. Data w ith respect to E m ory Bank have been adjusted

to reflect th a t bank's Novem ber 1, 1975 acquisitions of The Citizens and Southern Bank

o f Chamblee, The Citizens and Southern Park National Bank, and The Citizens and

S outhern South DeKalb Bank.

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long as C&S Holding in either case did not own more than 5 percent of the 

stock of the banks so sponsored or acquired. As a consequence, the C&S 

system sponsored de novo several "5-percent banks" in DeKalb County. 

Tucker Bank is the only DeKalb County C&S "5-percenter" that was not 

sponsored de novo.

In 1970, when a change in Georgia's branching laws became effective, the 

C&S system sought to reorganize its 5-percent banks in the Atlanta area by 

merging them into w holly owned C&S subsidiaries in Fulton and DeKalb 

Counties. Six such merger applications came before the Corporation's Board o f 

Directors fo r approval under the Bank Merger A ct and five were so approvedall for banks originally sponsored de novo by the C&S system (see 1971 FDIC 

Annual Report 95-100). The application to merge Emory Bank and Tucker 

Banks was denied, essentially on the grounds that the 1965 affiliation between 

the tw o banks was anticompetitive in its origins and should not be ratified by 

the Corporation's approval under the Bank Merger Act, even though no existing com petition would be, and no significant future com petition was likely to 

be, eliminated by their merger in 1971 (see 1971 FDIC Annual Report

152-155). The Department of Justice sued to prevent consummation of the 

five proposed mergers which the FDIC had approved and to enjoin under 

section 1 of the Sherman A ct the "correspondent associate relationship" which 

the C&S system had w ith all six banks. That litigation resulted ultim ately in a 

6— 3 decision favorable to the C&S system on all counts (United States v. 

Citizens & Southern National Bank et al.f 422 U.S. 8 6 (June 17, 1975)). On 

November 1 of this year, the five approved mergers were finally consummated. 

The C&S system, in the interim, filed a new application fo r FDIC approval of 

its proposed merger of Tucker Bank into Emory Bank.

Competition. The Board of Directors sees no reason to change the view it 

expressed in 1971 that the acquisition of control over Tucker Bank by the C&S 

system was substantially anticompetitive when it occurred in 1965. It has, 

however, carefully reviewed its earlier decision in the light of the Supreme 

Court's discussion of the "grandfather clause" contained in the 1966 amendments to the Bank Holding Company Act, 12 U.S.C. section 1849(d) (Public 

Law 89-485). This "grandfather clause," in essence, forgave bank holding companies of prior violations of the antitrust laws (other than section 2 of the 

Sherman Act) if the A ttorney General failed to initiate an action to block the 

violation prior to July 1, 1966.**

In relevant part, the Supreme Court said:

Unlike § 1849(b) [governing post - July 1, 1966 acquisitions] this 

provision [§ 1849(d)] does not state or im ply that the covered transactions must have received the formal approval of the Federal Reserve 

Board [under the Bank Holding Company A c t]. This grandfather provision is not, like § 1849(b), an attempt to accommodate the competing 

jurisdictions of the Federal Reserve Board under § 1842 and the Justice 

Department under the antitrust laws. Rather, the grandfather provision is 

a simple conferral of legislative amnesty for theretofore unchallenged

B A N K A BS O R P TIO N S A PP R O V E D BY TH E C O R P O R A T IO N 107

* * A som ewhat sim ilar provision in the 1966 am endm ents to the Bank Merger A c t required

such action to be initia ted by the A tto rn e y General p rio r to February 21, 1966 (Public

Law 89-356, § 2(b)).

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108 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

transactions completed before Congress had clarified the nature of that 

accommodation.

The transactions by which C&S created a correspondent associate 

relationship w ith three of the 5-percent banks— the Sandy Springs, 

Chamblee, and Tucker banks— were consummated prior to July 1966, 

and the A ttorney General had taken no action against those transactions 

by that date. Those transactions thus fall w ithin the terms o f the grandfather provision, and the correspondent associate programs in force at

those three banks are, therefore, immune from attack under % 1 o f the

Sherman Act.

While the form ation by C&S of a de facto branch was a unique type 

of transaction, it may fairly be characterized as an 'acquisition, merger, 

or consolidation of the kind described in § 1842 (a).' Forming a de

facto branch was a multifaceted operation— involving a m ultiplicity of 

purchases of stock by a number of parties, the adoption of the C&S 

logogram by the de facto branch, the connection of the de facto branch 

w ith C&S personnel and inform ation programs, the structuring of the 

bank to receive and administer all C&S banking services, and the establishment of formal C&S influence over the board of directors at the de

facto branch. But even before its scope was expanded in 1970 § 1842(a) 

was concerned w ith more than the literal 'acquisition' of stock: It took

broad account o f the 'indirect' control o f stock, and the control o f

boards o f directors 'in any m anner/ by bank holding companies. The

grandfather provision creates im m unity under § 1 of the Sherman Act, 

not sim ply under % 7 o f the Clayton A c t, an indication that its protection extends n o t merely to literal acquisitions, mergers, and consolidations, b ut also to 'restraints o f trade'simultaneous with and functionally

integral to such transactions. Though to 'restraints o f trade' simultaneous with and functionally integral to such transactions. Though m u ltifaceted, the form ation by C&S o f a de facto branch was a unitary and 

cohesive undertaking in the sense that all the facets were closely coordinated, simultaneously instituted, and designed to serve the single purpose 

of fittin g the new bank into the 'C&S system.' There is virtually nothing 

about the present correspondent associate programs that was not fu lly 

evident and in place from the moment the programs were launched. 

There has been no increase in C&S control, nor any change in the way it 

has been exercised.

Whether these programs violated § 1842(a)— as it applies today or as 

it applied when the programs began— is not relevant to our inquiry.19 By 

its terms, the grandfather provision applies to transactions o f the kind

described in § 1842(a). We cannot believe that Congress wished to grant 

the benefits of the provision only to transactions that plainly transgressed § 1842(a). Such a construction would make application of the 

grandfather provision not only cumbersome and time consuming [fo o tnote 20 om itted] but also flagrantly inequitable. The form ation of a de

facto C&S branch involved the direct and indirect acquisition of bank

19The grandfather provision creates a conclusive presum ption o f com pliance w ith

the a n titru s t laws, b u t n o t necessarily o f com pliance w ith the provisions o f the

Bank Holding C om pany A ct. See 12 U.S.C. 18 49(f).

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B A N K A BS O R P TIO N S APP R O V E D BY TH E C O R P O R A T IO N 109

stock, and the direct and indirect assertion of control over the governance and operations of a bank, by a bank holding company. Though 

unusual in form , such a transaction quite clearly falls w ithin the class of 

dealings by bank holding companies which Congress intended, in § 

1849(d), to shield from retroactive challenge under the antitrust laws.

2. De Facto Branching Under the Sherman A c t

Three of the 5-percent banks— the Park National, South DeKalb, and 

North Fulton banks— were formed after July 1, 1966, and their correspondent associate relationships w ith C&S are therefore beyond the reach 

of the grandfather provision of the Bank Holding Company A ct and 

subject to scrutiny under the Sherman Act.

Each of these banks was founded ab initio through the sponsorship of 

C&S. Except fo r that sponsorship, they would very probably not exist. 

The record shows that other banking organizations had been unsuccessful 

in attempting to launch new banks in the area, and C&S affiliation and 

financial backing were instrumental in convincing state and federal banking authorities to charter these new banks. In short, these banks represented a policy by C&S of de facto branching through the form ation of 

new banking units, rather than through the acquisition, and consequent 

elimination, of pre-existing, independent banks.21 [Emphasis supplied.]

21The Tucker Bank, which was not founded as a new bank by C&S, comes within

the coverage o f the grandfather provision, as explained in the previous section.

De facto branching through the de facto 'a cq u isitio n ' o f pre-existing banks m igh t

raise questions under the Sherman A c t considerably d iffe re n t fro m those presented by the C&S practice o f de facto branching through fou nding new banks.

[Emphasis supplied.]

The Board of Directors interprets this discussion as covering not merely the 

attempted application of Sherman A ct section 1 to the "correspondent associate relationships" between the C&S system and Tucker Bank, but also any 

effort to apply any other provision of the antitrust laws (save only section 2 of 

the Sherman Act) to the 1965 acquisition of control by the C&S system over 

Tucker Bank.

S trictly speaking, the tw o "grandfather clauses" cited are silent about the 

impact of such a pre-1966 antitrust violation on the "post-grandfather-date" 

administration of the Bank Holding Company Act and the Bank Merger A ct; 

but, the Board of Directors believes that where a pre-1966 antitrust violation is 

the only reason for denying an application under either Act, the responsible 

agency should take the view that Congress intended to forgive the violation and 

accordingly that the violation should not be considered in analyzing the 

competitive factors presented by the application. On the other hand, if control 

of Tucker Bank had been acquired by the C&S system after the relevant 

"grandfather date" in 1966 so that the antitrust violation occurred thereafter 

or if an analysis of the traditional banking factors, including considerations of 

convenience and need, were to convince the responsible agency, even as to a 

pre-1966 acquisition, that the application should be denied, the responsible 

agency would be acting in conform ity w ith its statutory duty were it to proceed to deny the application. The Board of Directors believes this to be the 

only fair reading of footnotes 19 and 21 in the context of the Supreme Court's

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110 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

discussion of the issues presented by the "grandfather clause" found in the 

Bank Holding Company Act.

Since the banking factors and considerations of convenience and need were 

found to be neutral in the Board's original decision on this proposed merger 

and since Congress apparently intended to forgive any antitrust violation, other 

than a violation of Sherman A ct section 2 (which is not here in issue), based on 

C&S's acquisition of control of Tucker Bank in 1965, the A ttorney General 

not having sued prior to July 1, 1966, the Board has come to the conclusion 

that the application now before it should be, and it hereby is, approved.

Resources

I in

Banking Offices

\ in

thousands

of dollars)

In

operation

To be

operated

The Ottawa County Bank

Minneapolis, Kansas

6,383 1 2

to merge with

The Citizens National Bank of Minneapolis

Minneapolis

8,733 1

Summary report by Attorney General, July 31, 1975

Minneapolis, Kansas, is a small com m unity of about 2,000 located 25 miles 

north of Salina. Minneapolis is the county seat of Ottawa County, a rural 

county w ith a total 1970 population of 6,200.

Ottawa Bank and Citizens Bank are the only banks operating offices in 

Minneapolis and are two of five banks, all w ith total deposits ranging from $4 

to $10 m illion, operating in Ottawa County. The other three Ottawa County 

banks are located at distances of approximately 10-12 miles from Minneapolis. 

Four other, larger banks are located in Salina, approximately 25 miles from 

Minneapolis. The proposed merger would eliminate existing com petition in 

Minneapolis and Ottawa County and increase concentration in commercial 

banking in this area.

Basis fo r Corporation approval, December 1, 1975

The Ottawa County Bank, Minneapolis, Kansas ("C ounty Bank"), a State 

nonmember insured bank w ith total resources of $6,383,000 and total IPC 

deposits of $4,681,000, 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 The Citizens National Bank of 

Minneapolis, Minneapolis, Kansas ("Citizens N ational"), w ith total resources of 

$8,733,000 and total IPC deposits of $6,693,000. As an incident to the merger, County Bank would establish the sole office o f Citizens National as a 

branch, to be designated the main office, the sole office of the form er becoming the branch of the resultant bank.

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Competition. Each bank operates its only office in the city of Minneapolis 

(population 1,971), the centrally located county seat of Ottawa County (population 6,183) in north-central Kansas. Production of wheat and other grains is 

of major economic importance in the area, although one manufacturing plant 

in the city employs some 100 people. A number of local residents are employed in the city of Salina (population 37,714), the sixth largest city in 

Kansas and the only m unicipality w ithin 50 road-miles of Minneapolis w ith a 

population exceeding 7,300. Salina is 21 miles south of Minneapolis over U.S. 

Route 81.

The local banking market in which the competitive effects of the proposed 

merger would be most immediate and direct probably excludes Salina and 

consists of Minneapolis and that area of central Kansas w ithin a 10-12 mile 

radius of that city. This local market is sparsely populated, containing an 

estimated 5,500 people. Five unit banks, ranging in IPC deposit size from $3.5 

million to $9 m illion, serve this small market. Citizens National has the third 

largest deposit share (19.7 percent) in this market while County Bank has the 

fourth largest deposit share (12.9 percent). Their merger would obviously 

eliminate some existing com petition between them and move the resultant 

bank to first place in the market rankings, slightly ahead o f what would then 

be the area's second and third ranking banks.

While these are adverse considerations, the market is very small and its 

income level is 26 percent below the State average. A fte r the merger, four 

banks would serve the market— or one bank fo r an average of 1,400 persons. 

Relatively high levels of concentration are not unusual in such sparsely populated markets.* The Bank of Tescott, some 12 miles to the southwest of 

Minneapolis, The State Bank of Delphos, a similar distance to the north, and 

The Bennington State Bank, some 10 miles to the southeast, would continue to 

be banking alternatives available to dissatisfied customers in the Minneapolis 

area.

There appears to be no significant potential for increased com petition 

between County Bank and Citizens National in the future through de novo

branching. Kansas law confines a bank's branching to a maximum of three 

detached, limited power facilities, all of which must be located w ithin the 

bank's main office com m unity. Office expansion by either County Bank or 

Citizens National w ithin Minneapolis, in view o f the city's modest size and the 

sparse and declining population of its environs, appears to be unnecessary and 

economically unfeasible.

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 Citizens National are satisfactory and the bank's future

*W ere Salina to be included in the relevant banking m arket, a total o f 9 com m ercial banks

w ould operate 16 offices fo r some 47 ,000 people, holding area IPC deposits aggregating

$156 m illio n , w ith 4 banks in Salina having individual shares o f 25.4 percent, 24.1

percent, 20.1 percent, and 8.8 percent o f such deposits. Citizens National w ould have the

seventh largest share o f such deposits (4.3 percent) w hile C ounty Bank w o u ld have the

eighth largest share (3 percent). Viewed in such a co n te xt, th e ir proposed merger w o u ld

no t be considered substantially an tico m pe titive.

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112 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

prospects are favorable. The condition of County Bank, on the other hand, is 

unsatisfactory and its future prospects are less than favorable. The resultant 

bank, w ith augmented capital funds and controlled by the present management 

of Citizens National, would have satisfactory future prospects.

Convenience and Needs o f the Com m unity to be Served. County Bank's full 

service office would be reduced at the time of the merger to a limited power 

facility. This loss of convenience fo r certain o f the bank's customers would 

have very limited impact, however, in view of the fact that the tw o banks are 

located w ithin one block of each other on the same street. The increased 

lending lim it of the resultant bank ($164,000) would serve the convenience of 

a fair number of customers. County Bank, as a part of the 'resultant bank, 

would be restored as a viable com petitor and the merger would thus contribute 

to the needs and convenience of the relevant market.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

To be

operated

First Pennsylvania Bank

Bala-Cynwyd, Pennsylvania

6,052,916 85 95

to purchase the assets and assume

the deposit liabilities of

Virgin Islands National Bank

Charlotte Amalie, St. Thomas, 

Virgin Islands

132,705 3

Summary report by A ttorney General, November 11, 1975

We have reviewed this proposed transaction and conclude that it would not 

have a substantial competitive impact.

Basis fo r Corporation approval, December 1, 1975

First Pennsylvania Bank N.A., Bala-Cynwyd, Pennsylvania ("F irst Penn"), a 

national banking association w ith total assets of $6,052,916,000 and total IPC 

deposits of $2,674,997,000, has applied, pursuant to section 18(c) and other 

provisions of the Federal Deposit Insurance Act, for the Corporation's prior 

consent to acquire the assets of and assume the liability to pay deposits made 

in three uninsured offices of Virgin Islands National Bank, Charlotte Amalie, 

St. Thomas, Virgin Islands ("V I N ational"), tw o of which are located on Tortola in the British Virgin Islands and the third of which is located on Antigua, 

British West Indies. Application fo r consent to acquire the remaining assets and 

assume the liability to pay deposits in the seven insured offices of VI National 

is being made to the Com ptroller of the Currency. As an incident to the 2 

applications, the $132,705,000 in total resources, the $118,632,000 of total 

deposits, and the 10 offices of VI National would become the assets, deposits,

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and branches of First Penn, increasing its assets and deposits slightly and the 

total number of its offices to 95.

Governing Facts. VI National has been a w holly owned subsidiary of First 

Penn since 1960. The proposed transactions are in effect a corporate consolidation and reorganization that would have no adverse effects on com petition in 

any relevant area. The convenience and needs of the public presently being 

served by VI National would continue to be served follow ing consummation by 

First Penn, w ith possibly greater efficiency and local convenience.

Based on the foregoing, the Board of Directors has concluded that approval 

of the transaction is warranted.

Approval of Bank Absorption Previously Denied by the Corporation

Resources

(in

thousands

of dollars)

B anking Offices

In

operation

T o be

operated

The Bank of South Texas

Alice, Texas

27,581 1 1

to m erge w ith

First National Bank o f Alice

Alice

18,392 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 in Sandia, about 

20 miles from Alice; and one in Premont, about 30 miles from Alice. Applicant 

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 o f Alice. 

Applicant is the second largest o f three Alice banks, accounting for nearly 28 

percent of total city deposits while Bank is the smallest of the three w ith 

almost 2 0 percent.

The application indicates that the banks are presently under common 

ownership and management. A group of 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 two cases of 

common management. Mr. Erck serves as Chairman of the Board of both Bank

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114 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

and Applicant and President of Bank; he is also a director of both banks. Mr. 

N. O. Adams, Jr. serves as President of Applicant and Vice President o f 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.

Statement upon reconsideration, August 15, 1975 

The Bank of South Texas, Alice, Texas, a State nonmember insured bank 

w ith total resources of $27,581,000 and total IPC deposits of $19,087,000, 

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 under its 

charter and title w ith First National Bank of Alice, Alice, Texas ("F irst National"), w ith total resources of $18,392,000 and total IPC deposits o f 

$13,302,000. On December 31, 1974, the application was denied.* Subsequently, The Bank of South Texas requested the Corporation to reconsider its 

denial and submitted new evidence and inform ation not available to the Corporation at the time the original application was considered. Upon reconsideration in light of the newly presented facts, it is the judgment of the Corporation 

that the convenience and needs in the relevant markets outweigh the anticompetitive effects which warranted the original denial. Accordingly, the 

application for consent to merge is hereby granted.

The standards applied by the Corporation in passing upon merger applications are set forth in subsection 18(c)(5) of the Federal Deposit Insurance A ct 

which provides inter alia that the Corporation shall not approve a merger 

transaction "whose effect in any section of the country may be substantially to 

lessen com petition . . . unless it finds that the anticompetitive effects of the 

proposed transaction are clearly outweighed in the public interest by the 

probable effect of the transaction in meeting the convenience and needs of the 

com m unity to be served." In addition, the same subsection provides that: 

" [ i] n every case, the responsible agency shall take into consideration the financial and managerial resources and future prospects of the existing and proposed 

institutions, and the convenience and needs of the com m unity to be served." 

Accordingly, where substantial anticompetitive effects may result from the 

proposed merger, the Corporation is obliged under the A ct to balance such 

anticompetitive effects w ith the benefits which are likely to arise out of the 

merger and to approve the merger only where such benefits "clearly" outweigh 

the foreseen anticompetitive effects.

The Corporation, in deciding that the application should be denied, found 

"th a t the effect of the 1970 acquisition of stock control was 'substantially to 

lessen com petition' in the Alice banking market and that the postponed merger 

would give permanence to that anticompetitive result in frustration of the 

Bank Merger A c t" and concluded:

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

*See Basis fo r C orp ora tio n denial, 1974 FD IC Annual Report, 168-172. The circu m ­

stances surrounding this case and the essential facts relied upon by the C orporation in its

original decision are set fo rth in th a t statem ent and w ill n o t be restated herein.

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B A N K ABS O R P TIO N S A PP R O V E D BY TH E C O R P O R A T IO N 115

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.

In seeking reconsideration of the Corporation's previous denial, the application presents no new facts which cast doubt upon the determination w ith 

respect to the substantially anticompetitive effects, either of Mr. Erck's acquisition of m ajority interest in the tw o then competing banks or of the merger in 

question. However, new facts have been brought to the Corporation's attention 

which indicate that such adverse competitive consequences are clearly outweighed by the convenience and needs of the markets served.

Before turning to these facts, it is well to recall that, in evaluating the new 

facts presented by the applicant, the Corporation is obligated not to view them 

in isolation.

The test mandated by subsection 18(c)(5) requires a balancing of competing 

public interests. The Corporation's decision that the substantially adverse 

effects of the merger were not "clearly outweighed" by overriding banking 

factors or considerations of convenience and need was not intended to suggest 

that no facts were presented at the time which argued fo r the merger. Indeed, 

the case was a close one. Among the favorable factors which argued for approval of the merger at the time of its first consideration were the fact that the 

Erck banks do not presently compete w ith one another, the fact that there is 

no economic or legal basis for believing that Mr. Erck w ill divest himself of his 

controlling and m ajority interest in either of the two institutions in the foreseeable future, and the fact that the resulting institution w ill be able to compete more effectively w ith Alice National Bank, which is now the clearly 

dominant institution in the Alice market. Thus, in order to grant the application on reconsideration, the Corporation need not find that the new facts 

presented by the applicant in themselves "clearly outweigh" the substantially 

anticompetitive effects of the merger, but instead must weigh against such 

anticompetitive effects all of the factors which favor the merger.

In the original basis for denial, the Corporation stated:

But outside banks today are likely to view the offices of Bank of South 

Texas and First National as being component parts of one banking organization. Since no outside bank has attempted de novo 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.

Since that decision, the Corporation has been apprised of the fact that the 

consummation of the merger w ill probably lead to the relocation of Sandia 

State Bank from Sandia to a site at or near the present site of First National in 

Alice, Texas. It is the judgment of the Corporation that, notwithstanding its 

limited size and scope o f operations, Sandia State Bank w ill possess the requisite management skill and access to financial resources to enable it to become 

an aggressive com petitor in the Alice m arket.** Thus, while the merger will

* * l t should be noted tha t, in ad d itio n to enhancing co m p e titio n in the A lice m arket, the

relocation o f Sandia State Bank w ill allow the in s titu tio n to u tilize its charter in the

p u b lic interest to a far greater e xte nt and may also have the e ffe ct o f m in im izin g a

p o tential supervisory problem . Sandia Bank's total resources stood at $1 ,446 ,600 and

its to ta l IPC deposits at $968,700, although the bank has been in operation since 1912,

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Federal Reserve Bank of St. Louis
116 F E D E R A L DEPO SIT IN S U R A N C E C O R P O R A T IO N

cement the anticompetitive 1970 stock purchase by Mr. Erck, it w ill at the 

same tim e serve to facilitate the entry of a fifth effective competitive force into 

the relevent market where, at present, there are only four due to the fact of 

Mr. Erck's control over the tw o banks in question.***

It should be reiterated that in finding that approval of this merger is warranted in light of the special circumstances outlined above, the Corporation has 

not receded from the im portant principle that underpins its original determination in this case. The purpose of the Bank Merger A ct of 1966 should not be 

thwarted through the purchase of stock of two competing institutions by an 

individual or a group w ith the intent subsequently to merge the tw o institutions. Where such a pattern is present and substantial lessening of com petition 

found, the subsequent merger w ill not be approved absent clearly overriding 

banking factors or considerations of convenience and needs.

Conclusion

Upon reconsideration, the Corporation has determined that the convenience 

and needs of the relevant banking market clearly outweigh the anticompetitive 

impact of the merger on The Bank of South Texas and First National Bank of 

Alice. Accordingly, the Corporation's consent to the merger of the tw o institutions is hereby granted.

has been characterized by com petent management, and has an adjusted capital and

reserves to total gross assets ratio o f 32.5 percent. The bank has outstanding loans

am ounting to on ly $ 5 48,7 00; a sizable pa rt o f its p o rtfo lio consists o f paper purchased

fro m the interests of its president, R obert R. M ullen. (Financial data cited w ith respect

to Sandia State Bank are as o f its last exa m ination re p o rt w hich was com pleted on A p ril

22, 1975.) These figures reflect the sparse and declining po p u la tio n o f the bank's trade

area w hich stands at 250. In short, in its present location the bank hardly has su ffic ie n t

business to sustain a banking operation and w ould no t have th a t business bu t fo r the

interests o f its d o m in a n t shareholder. By contrast, the A lice m arket in to w hich the

Sandia bank w o u ld move w o u ld b e nefit significantly fro m the in tro d u c tio n o f a new

co m p e tito r. It should also be noted th a t the Sandia bank has been robbed on tw o

occasions and burglarized several oth er tim es in recent m onths and is considered

especially vulnerable in its present location. R elocation fro m its present isolated site

w o u ld serve to m inim ize this p a rticular risk.

* * * A s stated in th e Basis fo r C orporation denial: "T h e local banking m arket m ost relevant

to an evaluation o f the proposed merger can be approxim ated by the c ity o f A lice and

th a t area w ith in a radius o f ab out 15 m iles.”

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Federal Reserve Bank of St. Louis
Merger transactions were involved in the acquisitions o f banks by holding 

companies in the follow ing approvals in 1975. 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 fo r 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.

Bank o f Virginia — Cavalier County, Charlottesville, Virginia, in organization; offices: 0; resources: 50 ($000); to merge w ith Cavalier — County Bank,

Charlottesville; offices: 1; resources: 3,358 ($000). Approved: January 14.

New Jackson County Bank, Edna, Texas, in organization; offices: 0; resources: 50 ($000); to merge w ith and change title to Jackson County State

Bank, Edna; offices: 1; resources: 14,214 ($000). Approved: February 27.

Marshall County Bank, Arab, Alabama, in organization; offices: 0; resources: 100 ($000); to merge w ith and change title to The Bank o f Arab,

Arab; offices: 1; resources: 14,483 ($000). Approved: April 28.

The C ity Bank, Kent, Ohio; offices: 5; resources: 42,432 ($000); to merge 

w ith The Kent Bank, Kent, in organization; offices: 0; resources: 1,800 ($000). 

Approved: May 13.

Burnet Road State Bank, Austin, Texas, in organization; offices: 0; resources: 200 ($000); to merge w ith and change title to N orth Austin State

Bank; offices: 1; resources: 43,125 ($000). Approved: May 22.

F BT Bank, Frankenmuth, Michigan, in organization; offices: 0; resources: 

130 ($000); to consolidate w ith and change title to Frankenmuth Bank &

Trust, Frankenmuth; offices: 13; resources: 146,659 ($000). Approved: June 

23.

Bay C ity Bank & Trust Company, Bay City, Michigan; offices: 7; resources: 

73,076 ($000); to consolidate w ith Manufacturers Bank o f Bay City, Bay C ity, 

in organization; offices: 0; resources: 120 ($000). Approved: July 28.

MDB Bank, Yellow Springs, Ohio, in organization; offices: 0; resources: 312 

($0 0 0 ); to acquire the assets of and assume the deposit liabilities o f and change 

title to M iam i Deposit Bank, Yellow Springs; offices: 2; resources: 24,795 

($000). Approved: August 21.

N orth Laurent State Bank, Victoria, Texas, in organization; offices: 0; resources: 100 ($000); to merge w ith and change title to American Bank o f

Commerce, Victoria; offices: 1; resources: 72,448 ($000). Approved: August 

25.

Brookfield State Bank, Houston, Texas, in organization; offices: 0; resources: 200 ($000); to merge w ith and change title to Bank o f Almeda,

Houston; offices: 1; resources: 26,850 ($000). Approved: September 24.

Twin C ity State Bank, Texarkana, Texas, in organization; offices: 0; resources: 100 ($000); to merge w ith and change title to Twin C ity Bank,

Texarkana; offices: 1; resources: 5,575 ($000). Approved: October 6 .

B A N K A BS O R P TIO N S A PP R O V E D BY TH E C O R P O R A T IO N 117

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

The Citizens Bank & Trust Company, Wadsworth, Ohio; offices: 1; resources: 20,714 ($000); to merge w ith The Wadsworth Bank, Wadsworth, in 

organization; offices: 0; resources: 0 ($000). Approved: October 15.

Citizens State Bank, Crane, Texas, in organization; offices: 0; resources: 50 

($000); to merge w ith and change title to First State Bank, Crane; offices: 1; 

resources: 8,527 ($000). Approved: October 15.

C ity Bank o f Hopewell, Hopewell, Virginia, in organization; offices: 0; resources: 100 ($000); to merge w ith and change title to Cavalier Central Bank &

Trust Company, Hopewell; offices: 2; resources: 5,946 ($000). Approved: 

October 31.

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BANK ABSORPTIONS DENIED BY THE CORPORATION

119

Resources

(in

thousands

of dollars)

Ban kin g Offices

In

operation

T o be

operated

Chester Bank 3,865 1 1

Chester, Connecticut

to acquire the assets and assume

the deposit liabilities of

Chester Savings Bank 16,803 1

Chester

Summary report by A ttorney General, January 15, 1975

Trust Company and Savings Bank are the only banks located in Chester, a 

small com m unity of about 3,000 located in south-central Connecticut, midway 

between New Haven and New London. Nine other commercial and savings 

bank offices exist in nearby towns w ithin 8 miles o f Chester.

Trust Company and Savings Bank are not now in significant com petition 

w ith each other. Savings Bank accepts only time and savings accounts and 

makes mostly real estate loans, while Trust Company is not significantly engaged in either activity. While both banks could expand the services they 

provide, bringing them into greater com petition w ith each other, this does not 

appear to be likely given the small size of the banks and their history of 

common officers and directors. Further, the transaction would eliminate the 

home office protection which under Connecticut law precludes outside savings 

banks from branching into Chester.

Accordingly, we conclude that the effect of the transaction on com petition 

would not be adverse.

Basis fo r Corporation denial, June 30, 1975

Chester Bank, Chester, Connecticut, an insured State nonmember bank w ith 

total resources o f $3,865,000 and total IPC deposits o f $2,579,000, has 

applied, pursuant to section 18(c) and other provisions of the Federal Deposit 

Insurance A ct for the Corporation's prior consent to acquire the assets of and 

assume liability to pay deposits made in Chester Savings Bank, Chester, 

Connecticut, an insured mutual savings bank having total resources of 

$16,803,000 and total IPC deposits of $15,433,000. As part o f the overall 

transaction, the remaining net w orth of Chester Savings Bank would be distributed to its depositors of record date either as stock in the resulting bank or 

as cash, at the depositors' option. The resulting bank would continue to operate from the jo in t quarters presently occupied by both banks.

Chester Savings Bank has operated one office ever since its establishment in 

1871 in the town of Chester, Middlesex County, in southern Connecticut 

between New Haven and New London. Chester Bank, form erly The Chester 

Trust Company, was organized in 1914 by individuals connected w ith Chester 

Savings Bank, and the tw o banks have been under essentially the same management ever since, sharing a common lobby at their sole location. The tw o banks

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120 F E D E R A L DEPO SIT IN S U R A N C E C O R P O R A T IO N

together offer a broad range of banking services to the people of Chester (1970 

population 2,982) and the surrounding area, but they do not compete w ith 

each other. Chester Bank is among the State's smallest commercial banks, while 

Chester Savings Bank is among the State's smallest mutual savings banks.

Irrespective of the merits of this proposal under the competitive and banking factors normally considered under the Bank Merger A ct, a denial seems 

required by the terms of Public Law 93-495, which became effective October 

28, 1974, almost simultaneously w ith the filing of this application w ith the 

Corporation and several months after many preliminary steps had been taken 

by both banks. A section of that new law limits the Corporation's power to 

approve a transaction of this type if the practical effect of the transaction 

would enable a bank like Chester Savings Bank to convert from the mutual to 

the stock form of organization. The relevant portion of the 1974 legislation 

reads as follows:

. . . Until June 30, 1976, the responsible agency shall not grant any 

approval required by law which has the practical effect of perm itting a 

conversion from the mutual to the stock form of organization, including 

approval of any application pending on the date of enactment of this 

subsection, except that this sentence shall n o t be deemed to lim it now o r

hereafter the authority o f the responsible agency to grant approvals in

cases where the responsible agency finds that it must act in order to

maintain the safety, soundness, and stability o f an insured bank [emphasis supplied]. The responsible agency may by rule, regulation, or 

otherwise and under such civil penalties (which shall be cumulative to 

any other remedies) as it may prescribe take whatever action it deems 

necessary or appropriate to implement or enforce this subsection. (Public 

Law 93-495, title I, section 106; 12 U.S.C. 1828(c)(10).)

The question becomes, then, whether the Corporation "m ust act in order to 

maintain the safety, soundness, and stability of an insured bank." The jo in t 

report of the conference committee that considered this legislation contains 

only one reference to the exception allowed from the total moratorium otherwise imposed:

In considering applications, the responsible agency shall take cognizance 

of any undue difficulties likely to be encountered by financial institutions in very small communities, such as those w ith populations under 

4,000, in their efforts to comply w ith State statutes prohibiting interlocking directorates of financial institutions. (House Report No. 

93-1429, 93d Cong., 2d sess. 34 (1974).)

The Corporation believes, however, that neither Chester Savings Bank nor 

Chester Bank is likely to encounter difficulties so serious if this application is 

denied that the safety, soundness, or stability o f either w ill be endangered. A t 

worst, there may be some customer skepticism that the real reason for this 

denial is the one stated, that is, to carry out the apparent intent of a new 

provision of Federal law. In all probability, however, the tw o banks w ill continue to operate between now and June 30, 1976, exactly as they have fo r 

almost 60 years and as they are authorized to do by a "grandfather" provision 

of the 1973 Connecticut law which prohibits interlocking managements and. 

directorates between commercial banks and mutual institutions.

In any event, both banks have a history of conservative operations and their 

asset structures presently contain a minimal amount of risk. Chester Savings

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B A N K A BS O R P TIO N S D E N IE D B Y T H E C O R P O R A T IO N 121

Bank has had good deposit growth in recent years, while the commercial bank's 

total deposits have grown more slowly. Both banks have satisfactory capital 

ratios and each has enjoyed a solid earnings performance in the last 3 years. 

Neither bank is even remotely a "problem " bank.

Under the circumstances, approval of the application does not appear necessary to maintain the safety, soundness, or stability of either o f the two banks 

involved. Compliance on the part o f these tw o banks w ith the Connecticut law 

prohibiting interlocking directors of financial institutions is not required by the 

very terms of that law itself. Accordingly, under Public Law 9 3 495, the application cannot be approved and is hereby denied.

R e s o u rc e s

(in

th o u s a n 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 b e 

o p e ra te d

Monadnock National Bank

Jaffrey, New Hampshire 

(to convert to State charter)

4,613 1 1

to acquire the assets and assume

the deposit liabilities of

Monadnock Savings Bank

Jaffrey

19,714 1

Summary report by Attorney General, March 27, 1975

MNB and MSB are the only banks located in Jaffrey, a small com m unity o f 

about 3,400, located in southwestern New Hampshire. These banks are subject 

to some com petition from three banks located in Peterborough, located about

6 miles away. Six other banking institutions are located between 10 and 16 

miles from Jaffrey.

MNB and MSB are not now in significant com petition w ith each other. MSB 

accepts only time and savings accounts and makes mostly real estate loans, 

while MNB is not significantly engaged in either activity. New Hampshire law 

requires these banks to terminate their interlocking officer and director relationships by July 1, 1975. Thus, absent this transaction, the banks could be 

expected to compete w ith each other in the future. In view of the small size o f 

MNB and of the com m unity of Jaffrey, however, the effect of this transaction 

on com petition would not be significantly adverse.

Basis fo r Corporation denial, June 30, 1975

Monadnock National Bank, Jaffrey, New Hampshire, w ith total resources of 

$4,613,000 and total IPC deposits of $3,248,000, has applied, pursuant to 

section 18(c) and other provisions of the Federal Deposit Insurance Act, for 

the Corporation's prior consent to acquire the assets of and assume liability to 

pay deposits made in Monadnock Savings Bank, Jaffrey, New Hampshire, an 

insured mutual savings bank having total resources of $19,714,000 and total

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122 F E D E R A L DEPO SIT IN S U R A N C E C O R P O R A T IO N

IPC deposits of $17,728,000. Incident to the proposed transaction, the 4,000 

par $5 shares of common stock of Monadnock National Bank presently owned 

by Monadnock Savings Bank would be retired. Monadnock National Bank, 

prior to consummation of the proposed transaction, would convert to a State 

nonmember insured bank under the title "The Monadnock Bank." The resulting bank would operate from the sole location in which the two banks presently share quarters.

The New Hampshire legislature, during its 1971 session, enacted RSA 

384:5-a, which provides, in relevant part, that " [n ]o person shall at the same 

time serve as a trustee, director or officer of more than one of . . . ." six 

specified types of financial institutions, including commercial banks and 

mutual savings banks. This law becomes effective in the case of the tw o Monadnock banks on July 1, 1975. The subject transaction is being proposed as a 

means to enable the banks to comply w ith this State law.

Competition. The proposed transaction does not squarely fit prior Corporation precedents involving proposed acquisitions of New Hampshire savings 

banks by affiliated commercial banks where both banks were under a statutory 

duty to break up interlocking managements.* Although the two banks here 

involved have shared offices since 1869 in the small com m unity of Jaffrey 

(1970 population 3,353), they draw their banking business from a larger and 

more heavily populated area of about 23,000 persons w ithin a radius of 10 to 

12 miles of Jaffrey, including Peterborough, New Hampshire, and Winchendon, 

Massachusetts. While median income levels in this local banking market tend to 

be somewhat below the statewide figures, there was substantial growth in 

population between 1960 and 1970, unlike the situation in the sparsely populated, economically depressed sections of Coos County where the tw o prior 

New Hampshire applications originated. Total IPC deposits in the Jaffrey market aggregated more than $112.5 m illion as of June 30, 1974, compared to 

$58.0 m illion in the larger of the tw o Coos County markets recently reviewed 

by the Corporation.

Assuming, however, w ithout deciding, that the Corporation would have 

approved the proposed transaction based on its normal analysis of competitive 

and banking factors under the Bank Merger Act, a denial nevertheless seems 

required under an amendment to that A ct which became effective October 28, 

1974. This provision, which lim its the FDIC's power to approve a transaction 

the practical effect of which is to enable a bank like Monadnock Savings Bank 

to convert from the mutual to the stock form of organization, reads in relevant 

part:

. . . Until June 30, 1976, the responsible agency shall not grant any approval required by law which has the practical effect of perm itting a 

conversion from the mutual to the stock form of organization, including 

approval of any application pending on the date of enactment of this 

subsection, except that this sentence shall n o t be deemed to lim it now o r

hereafter the authority o f the responsible agency to grant approvals in

cases where the responsible agency finds that it must act in order to

*See Basis fo r C orporation approval o f the acquisition o f C ity Savings Bank o f B erlin by

Berlin C ity National Bank, 1974 F D IC Annual Report, 45-48, and Basis fo r C orporation

approval o f the merger o f The C olebrook N ational Bank w ith C olebrook G uaranty Savings Bank, 1974 F D IC Annual Report, 146-148.

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B A N K A BS O R P TIO N S D E N IE D B Y TH E C O R P O R A T IO N 123

maintain the safety, soundness, and stability o f an insured bank

[emphasis supplied]. The responsible agency may by rule, regulation, or 

otherwise and under such civil penalties (which shall be cumulative to 

any other remedies) as it may prescribe take whatever action it deems 

necessary or appropriate to implement or enforce this subsection. (Public 

Law 93-495, title I, section 106).

The question becomes, then, whether the Corporation "m ust act in order to 

maintain the safety, soundness, and stability of an insured bank." The jo in t 

report of the conference committee that considered this legislation contains 

only one reference to the exception allowed from the total moratorium otherwise imposed:

In considering applications, the responsible agency shall take cognizance 

of any undue difficulties likely to be encountered by financial institutions in very small communities, such as those w ith populations under

4,000 in their efforts to comply w ith State statutes prohibiting interlocking directorates of financial institutions. (House Report No. 

93-1429, 93d Cong., 2d sess. 34 (1974).)

The Corporation believes, however, that neither Monadnock Savings Bank 

nor Monadnock National Bank is likely to encounter difficulties so serious that 

the safety, soundness, or stability of either w ill be endangered, if they are 

forced after July 1 to operate as independent institutions in order to comply 

w ith the New Hampshire statute prohibiting interlocking managements.

Both banks have a history of conservative operations and their asset structures presently contain a minimal amount of risk. Monadnock Savings Bank has 

had good deposit growth in recent years, while the commercial bank's total 

deposits have fluctuated in a narrow range. Both banks have relatively high 

capital ratios and each has enjoyed a solid earnings performance in the last 3 

years. Neither bank is even remotely a "problem " bank.

Only three director-employees presently serve both banks, w ith the result 

that minimal additional management recruitm ent w ill be necessary to comply 

w ith the statutory mandate. Even if a total of three additional managementlevel persons must be hired as the applicants claim (the Corporation believes 

only one or tw o may actually be necessary), Monadnock Savings Bank had 

$272,000 in pretax earnings after interest payments to depositors in 1974 

w ithin which it could have absorbed its share of such additional salary expense, 

while Monadnock National Bank had $72,000 on a comparable basis.

Separate quarters as well as separate management might appear to place a 

financial burden on the Monadnock commercial bank, but the experience of 

most New Hampshire commercial banks operated in conform ity w ith the New 

Hampshire law on interlocks indicates that this could be resolved at far less 

cost than the applicants claim. That experience, moreover, along w ith the 

experience of thousands of other small commercial banks in the United States 

which operate in small communities, indicates that growth and profita b ility 

can be maintained despite small bank size. Indeed, the Monadnock commercial 

bank may experience greater growth and profitability as an independent entity 

than it has to date as an affiliate of Monadnock Savings Bank.

Approval of this application, therefore, does not appear necessary to maintain the safety, soundness, or stability of either of the tw o Monadnock banks 

involved. The application, accordingly, is denied.

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124 F E D E R A L DEPO SIT IN S U R A N C E C O R P O R A T IO N

R e s o u rc e s

( in

th o u s a n 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 b e 

o p e ra te d

Southern Oregon State Bank

Grants Pass, Oregon

41,724 2 3

to merge with

Valley of the Rogue Bank

Rogue River

10,168 1

Summary report by A ttorney General, September 15, 1975

Bank's Rogue River office is located about 9 miles east of Applicant's 

Grants Pass offices, w ith no competitive alternatives in the intervening area. 

The parties do, however, encounter substantial com petition from Oregon's 

large commercial banking institutions which maintain offices in both Josephine 

and Jackson Counties.

We conclude that the proposed merger w ill eliminate some existing com petition and slightly increase concentration in commercial banking in the Grants 

Pass-Rogue River area.

Basis fo r Corporation denial, November 28, 1975

Southern Oregon State Bank, Grants Pass, Oregon ("Southern Bank"), a 

State nonmember insured bank w ith total resources of $41,724,000 and total 

IPC deposits of $31,309,000, 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 Valley of the Rogue Bank, Rogue River, Oregon 

("Valley Bank"), w ith total resources o f $10,168,000 and total IPC deposits of 

$7,764,000, The banks would merge under the charter and title of Southern 

Bank. The present main office of Valley Bank would become a branch of the 

resultant bank, which would thus have a total of three offices.

Competition. Grants Pass (1970 population 12,455, up 23.1 percent since 

1960) is located in the Rogue River Valley in southwest Oregon about 30 miles 

north of the California border. The city is an im portant logging and lumbering 

center and is a marketing center fo r a variety of agricultural products. Light 

manufacturing is also gaining in importance, and in recent years the tourist 

trade has enjoyed good growth. Rogue River (population 841) is prim arily a 

bedroom com m unity fo r Grants Pass, and the only industry in the town is a 

sawmill employing about 75 people. Interstate Highway 5 connects Grants Pass 

w ith Eugene and Portland to the north and Rogue River and Medford to the 

east and south.

The local banking market in which the competitive effects of the proposed 

merger would be most direct and immediate may be approximated by the city 

of Grants Pass and its surrounding communities in Josephine County, plus the 

Evans Valley census division of Jackson County which includes the communities o f Rogue River and Gold Hill. Since the definition of the local market is 

critical in the evaluation of this proposal, some elaboration is desirable. Rogue 

River is only about 8 miles east of Grants Pass along I nterstate 5. Gold Hill is 5

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B A N K ABS O R P TIO N S D E N IE D BY TH E C O R P O R A T IO N 125

miles east of Rogue River, and about midway between Grants Pass and Medford. While mountainous terrain surrounds much of the Rogue River Valley, 

these communities are quite accessible to each other. Local bankers were in 

agreement, however, that persons in and around Rogue River and Gold Hill 

would be drawn to Grants Pass, rather than Medford, in the normal course o f 

employment and shopping. The only significant .bank in the Medford area 

which is not also in the market delineated above is The Oregon Bank, thus 

lim iting any incentive fo r people in Grants Pass and Rogue River to seek out 

banking alternatives in the Medford area. The applicants themselves make no 

claim that Medford should be included in the relevant market and concede that 

the area served by Valley Bank is w holly w ithin a larger area served by Southern Bank. Some confirm ation of the natural pull of Rogue River residents to 

Grants Pass is found in the action of Valley Bank in applying fo r its first 

branch in Fruitdale, about 1 mile south of Southern Bank's main office.

The market so defined contains about 37,000 people, heavily concentrated 

in and around Grants Pass. A t the present time, five commercial banks, which 

have approximately $95 m illion in total deposits, operate six offices there. 

Southern Bank has the largest share of the market w ith 35.0 percent of total 

commercial bank deposits while Valley Bank ranks fourth w ith 9.1 percent. 

The second (31.0 percent) and third (24.2 percent) largest shares o f the local 

market are held by branches, in Grants Pass, of the tw o largest commercial 

banks in the State, both based in Portland. The remaining 0.7 percent of the 

market's total commercial bank deposits (which are less than $ 1 m illion) is 

held by the Gold Hill branch o f Crater National Bank, Medford. Southern Bank 

has developed its share o f this local market over the past 20 years, while Valley 

Bank has been in existence only since 1968. Both banks have been strong and 

successful competitors in the market against the two big statewide banks. Their 

proposed merger is clearly not essential to their being able to compete against 

First National Bank of Oregon or United States National Bank o f Oregon and 

would in any event eliminate the substantial com petition which exists today 

between the tw o of them.

The application concedes that "nearly all deposits and loans of each bank 

originate in the service area of the other bank." It also estimates that 20 

percent of Valley Bank's deposits and 30 percent of its loans originate from 

individuals, partnerships, and corporations having a Grants Pass address.

Besides eliminating existing com petition, the proposed merger would substantially increase the concentration o f banking resources in the local market 

and reduce by one the limited number of effective competitors available to the

37,000 people there. In view of Valley Bank's application for a branch in 

Fruitdale, and its acquisition of property fo r that purpose, it is highly probable 

that the proposed merger would also eliminate increased com petition between 

Southern Bank and Valley Bank in the future. Valley Bank, in fact, projects a 

deposit inflow of more than $3 m illion at its new office w ithin the first 3 years 

after it is established. Moreover, although median income levels are below the 

State average, the Corporation's staff has noted that the population served by 

each commercial bank office in the market is relatively high at 6,166 persons 

per office.

Although the population and aggregate deposits o f the relevant geographic 

market in and around Grants Pass are small compared to the markets involved 

in most of the judicially decided bank merger cases, the Grants Pass-Rogue

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126 F E D E R A L DEPO SIT IN S U R A N C E C O R P O R A T IO N

River market appears to constitute an economically significant "section of the 

country" whose center is an incorporated city of more than 1 2 ,0 0 0 persons.* 

That being so, it would appear that the merger of Southern Bank and Valley 

Bank would be 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 com ­

petitors 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, Southern 

Bank already has the largest share of the market w ith 35.0 percent of the 

market's total commercial bank deposits, while Valley Bank has 9.1 percent of 

such deposits, ranking fourth in this respect. 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 merger would increase the comparable percentage 

from 90.2 percent to 99.3 percent.

Under all of these adverse circumstances, the Corporation finds that the 

effect of the proposed merger would be "substantially to lessen com petition" 

in the Grants Pass-Rogue River banking market.

Convenience and Needs o f the Community to be Served. The proposed 

merger would result in no significant change in banking services now available 

to customers of either bank except that Valley Bank customers would be 

offered Master Charge credit service. Customers of both banks would have an 

increased lending lim it at their service, but an increase in this lim it from 

$375,000 to about $500,000 for Southern Bank's customers and from 

$120,000 to the same figure fo r Valley Bank's customers is not sufficient to 

outweigh the anticompetitive aspects o f the proposal previously discussed. The 

handful of customers w ith larger borrowing needs would still have to go to one 

of the tw o competing national banks which both have over $ 2 billion in total 

assets. Both of these banks, moreover, also offer a credit card service to appropriate customers, so that benefit is also available in the market today fo r those 

customers who desire the service and can qualify for it.

Considerations of convenience and needs, therefore, add no significant 

weight toward approval of the proposed merger.

Financial and Managerial Resources; Future Prospects. Both banks have 

operated satisfactorily fo r years, and their asset condition is subject to only 

normal criticism. No serious management problems are evident, and both banks 

have enjoyed substantial deposit growth and good earnings. There are, in short, 

no "banking factors" present which might necessitate approval of the merger 

proposed.

Conclusion. Since there are no overriding banking factors or considerations 

of convenience and needs, the Corporation has concluded that the application 

must be denied in light of the findings on the competitive factors.

*Cf United States v. County Nat'l. Bank of Bennington, 330 F. Supp. 155 (D. V t. 1971),

339 F. Supp. 85 (D. V t. 1972).

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r

LEGISLATION AND REGULATIONS

PARTTHREE

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129

FEDERAL LEGISLATION - 1975

Depository Institutions Amendments of 1975 (Public Law 

94-200, approved December 31,1975).

Title I of this legislation extended for 14 months (until March 1, 

1977) the flexible authority of the Federal Reserve, the FDIC, and 

the Federal Home Loan Bank Board to set interest rate ceilings on 

time and savings deposits. The legislation also provided that any 

interest rate differential between insured commercial banks and 

thrift institutions that was in effect on December 10, 1975 may not 

be eliminated or reduced without the approval of both Houses of 

Congress by concurrent resolution.

Title II extended the life of the National Commission on Electronic Fund Transfers so as to give it two full years in which to 

operate, as originally intended by the Congress when it established 

the Commission by Public Law 93-495.

Title III, the "Home Mortgage Disclosure Act of 1975," requires 

any depository institution located in a standard metropolitan statistical area which makes loans secured by residential real property to 

disclose mortgage lending information by census tract where available at a reasonable cost as determined by the Federal Reserve 

(otherwise by zip code), and to make such information available to 

the public at the main office and at least one branch of the institution. The Federal Reserve may exempt from the disclosure provisions State-chartered institutions in States with mortgage disclosure laws substantially similar to those in the Act. Also 

exempted is any institution with assets of $10 million or less at the 

end of its last fiscal year. The provisions in title III become effective 

180 days after their enactment and expire 4 years after such effective date. Under the enforcement provisions of the Act, the FDIC 

has enforcement authority not only with respect to State nonmember insured banks which it regularly examines, but also with 

respect to any nonfederally insured "commercial bank, savings 

bank, savings and loan association, building and loan association, or 

homestead association (including cooperative banks) or credit union 

which makes federally related mortgage loans . . . ."

Securities Acts Amendments of 1975 (Public Law 94-29, approved June 4, 1975). There are four main subject areas of this 

legislation which would bring certain activities of federally insured 

banks within the regulatory jurisdiction of the Securities and Exchange Commission: regulation of clearing agencies and transfer 

agents, regulation of municipal securities dealers, institutional 

investor reporting requirements, and reporting requirements with 

respect to lost or stolen securities.

The Act provides for Federal regulation of the securities handling 

process, including clearing agencies, depositories, and transfer

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130 F E D E R A L DEPO SIT IN S U R A N C E C O R P O R A T IO N

agents, with a view to facilitating the establishment of a national 

system for the prompt and accurate clearance and settlement of 

securities transactions. Under the legislation, the SEC has general 

rulemaking and policy oversight responsibility for all clearing agencies and transfer agents and, with respect to such entities that are 

banks, the respective bank regulatory agencies have primary administrative and enforcement jurisdiction over the banks they regularly examine. The SEC also has limited examination authority over 

registered bank clearing agencies provided the Commission gives 

prior notice to and consults with the appropriate Federal bank 

regulatory agency concerning the feasibility and desirability of 

coordinating, to the maximum extent practicable, the Commission's 

examination with any examination proposed or planned by the 

bank regulatory agency.

In addition, the Act amends the Securities Exchange Act of 1934 

to create a Federal mechanism for the regulation of persons trading 

in municipal securities, including banks or subsidiaries, and departments or divisions thereof. The Act establishes a pervasive regulatory framework involving registration, rulemaking, examination, 

and enforcement. Initial rulemaking power is conferred upon a new 

self-regulatory agency called the Municipal Securities Rulemaking 

Board, and certain examination functions and enforcement powers 

with respect to banks are vested in the Federal bank regulatory 

agencies. However, predominant regulatory and supervisory authority over all aspects of municipal securities operations rests ultimately with the SEC, even where the regulated person is a federally 

insured bank or a subentity thereof. Thus, registration is exclusively 

with the SEC; rules proposed by the Municipal Securities Rulemaking Board would require SEC approval before adoption, and the 

SEC would retain residual rulemaking power on its own initiative. 

In addition, the SEC can make examinations of or bring enforcement actions against any municipal securities dealer. Although before exercising its examination and enforcement power over bank 

dealers or subentities the SEC must notify and consult with the 

appropriate Federal bank regulatory agency, the Act expressly provides that this requirement will not restrict the SEC's full power in 

such matters.

As to institutional investor reporting requirements, the Act adds 

a new subsection to section 13 of the Securities Exchange Act of 

1934. It empowers the SEC to require any investment manager 

(including a bank trust department) with a portfolio of equity 

securities registered under the Act having an aggregate fair market 

value of at least $100 million to report periodically to the Commission the composition of its portfolio, and such additional 

matters as its holdings of other securities and any transaction involving equity securities so registered with a market value of at least

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R U LE S A N D R E G U L A T IO N S OF TH E C O R P O R A T IO N 131

$500,000. In addition, the Act authorizes the SEC to require reporting of portfolios of $10 million or more and particular transactions of less than $500,000. Institutional investment managers that 

are FDIC-insured banks file copies of all reports with the appropriate regulatory agency.

Finally, the Act adds a new paragraph (f) to section 17 of the 

Securities Exchange Act of 1934 which authorizes the establishment by the SEC of a data bank to receive information relating to 

missing, lost, counterfeit, or stolen securities. It further requires 

certain persons, including insured banks, to report such information 

to the SEC and to make inquiry as generally directed by the SEC to 

determine whether securities transactions in which the bank is 

participating involve such securities. The SEC can delegate such 

authority to the appropriate Federal bank regulatory agencies 

insofar as insured banks are concerned.

RULES AND REGULATIONS AND STATEMENTS 

OF GENERAL POLICY

In the following general areas the Corporation either amended or 

added to its rules and regulations during 1975.

Disclosure:

a. Part 304 (12 C.F.R. 304) was amended to require all insured 

State nonmember banks to complete and submit to the Corporation 

periodic reports, as of June 30 of each year, containing information 

on the amount of deposits and the number of deposit accounts in 

various categories for the bank as a whole and for each authorized 

office.

b. Part 335 (12 C.F.R. 335) was substantially revised in accordance with the recent amendment to section 12(i) of the Securities Exchange Act of 1934, which required the Federal Deposit 

Insurance Corporation and the other Federal bank regulatory agencies to issue rules and regulations that are "substantially similar" to 

the rules and regulations of the Securities and Exchange Commission promulgated under sections 12, 13, 14(a), 14(b), 14(d), 

14(f), and 16 of the 1934 Act. The substantial revisions relate, 

among other things, to the disclosure requirements set forth in the 

registration, reporting, and proxy provisions of the part.

c. Pursuant to the Securities Exchange Act of 1934 (15 U.S.C. 

78q), the Corporation added part 341 (12 C.F.R. 341) which outlines numerous registration requirements for State nonmember 

banks acting as securities transfer agents.

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132 F E D E R A L DEPO SIT IN S U R A N C E C O R P O R A T IO N

Interest rates:

a. Section 329.4 (12 C.F.R. 329.4) was amended to suspend 

regulations involving the payment of interest on certain time deposits in insured State nonmember banks in North Dakota.

b. Sections 329.6 and 329.7 (12 C.F.R. 329.6 and 329.7) were 

amended to provide that the $1,000 minimum amount required for 

4- and 6-year time deposits is removed for Individual Retirement 

Accounts (IRA).

Deposits:

a. Section 329.1 (12 C.F.R. 329.1) was amended to permit partnerships, corporations, associations, or other profit-making organizations to maintain savings deposits in insured State nonmember 

commercial banks up to a maximum of $150,000 per depositor in 

any one such bank. Also, this section was amended to provide that 

pubjic units and partnerships, corporations, associations, or other 

profit-making organizations may not maintain NOW accounts in 

insured nonmember banks. However, this prohibition does not 

apply to public units operated primarily for charitable, educational, 

or other similar purposes.

b. Section 329.5 (12 C.F.R. 329.5) was revised to allow insured 

State nonmember banks to permit direct withdrawals from savings 

accounts to make payments or credit transfers to third parties regardless of the nature of the depositor's obligation to that third 

party.

c. Section 329.4 (12 C.F.R. 329.4) was amended to conform 

with portions of the Employees Retirement Income Security Act of 

1974 (ERISA) dealing with Individual Retirement Accounts (IRA). 

It provides for no penalty for withdrawal prior to maturity of IRAs 

qualified under the Internal Revenue Code if the IRA holder is 

disabled or has reached the age of 59 1/2. Also, there will be no 

penalty for early withdrawal of any time deposit before maturity if 

the owner dies.

Freedom of Information Act — Privacy Act:

a. Section 309.1 (12 C.F.R. 309.1) was extensively revised and 

amended to implement the release and disclosure provisions of the 

Freedom of Information Act.

b. Section 310 (12 C.F.R. 310) was added to implement provisions of the Privacy Act governing the access of an individual to 

systems of records maintained by the Corporation on that individual, and prohibiting the Corporation from releasing such information without the individual's consent. In addition, it outlines procedures for individuals desiring to challenge and amend such 

information maintained in the Corporation's system of records. In 

addition, this section governs the release to Federal and State

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RU LES A N D R E G U L A T IO N S OF TH E C O R P O R A T IO N 133

authorities of Corporation information relating to bank irregularities believed to constitute violations of the law.

Administration:

a. Part 303 (12 C.F.R. 303) was amended to provide for internal 

delegations of authority to the Director of the Division of Bank 

Supervision and to Regional Directors of the Corporation.

b. Part 308 (12 C.F.R. 308) was added to provide rules of procedure applicable to section 10(c) of the Federal Deposit Insurance 

Act involving examinations of witnesses, administration of oaths, 

preservation of testimony, and issuance of subpoenas in connection 

with special examinations of insured State nonmember banks or 

their affiliates.

c. Part 336 (12 C.F.R. 336) was amended to provide guidelines 

for Corporation employee conduct and responsibility in the private 

use and accumulation of Corporation information.

Miscellaneous:

Section 339.2 (12 C.F.R. 339.2) was amended to implement 

an amendment to the Federal Flood Disaster Protection Act involving loans to insured State nonmember banks in areas having 

special flood hazards.

STATEMENT OF POLICY

In accordance with a statement by the Board of Governors of the 

Federal Reserve System, the Board of Directors of the Federal Deposit Insurance Corporation reiterated a longstanding FDIC policy 

allowing the withdrawal of funds from a savings account upon a 

depositor's order transmitted by means of a telephone or other 

communications device. It is expected that insured nonmember 

banks will implement proper security procedures to insure the 

safety of this activity.

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Federal Reserve Bank of St. Louis
STATISTICS OF BANKS 

AND DEPOSIT INSURANCE 

PART FOUR

J

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NUMBER OF BANKS AND BRANCHES

Table 101. Changes in number and classification of banks and branches in the United States (States and

other areas) during 1975

Table 102. Changes in number of commercial banks and branches in the United States (States and other

areas) during 1975, by State

Table 103. Number of banking offices in the United States (States and other areas), December 31, 1975

Grouped according to insurance status and class of bank, and by State or area and type of

office

Table 104. Number and deposits o f all commercial and mutual savings banks (States and other areas),

December 31, 1975

Banks grouped by class and deposit size

Table 105. Number and deposits o f all commercial banks in the United States (States and other areas),

December 31, 1975

Banks grouped by deposit size and State

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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 S tate banks, tru s t com panies, and bank and tru st com ­

panies re gularly engaged in the business o f receiving deposits, w hether demand o r tim e , except m u tual savings banks;

S to ck savings banks, in clu d in g guaranty savings banks in New Hampshire;

Ind ustrial and M orris Plan banks w hich operate under general banking

codes, o r are spe cifically a u th o rize 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;

A regulated ce rtific a te d bank in Georgia; governm ent-operated banks in

N o rth D akota and Puerto R ico; a cooperative bank, usually classified as a

cre d it u n io n , operating under a special charter in New Hampshire; a savings

in s titu tio n , k n o w n as a " tr u s t c o m p a n y ," operating under special charter in

Texas; the Savings Banks T ru st C om pany in New Y o rk ; the Savings Bank and

T ru st C om pany N orthw est W ashington in the State o f W ashington; and

branches o f foreign banks engaged in a general deposit business in Illin o is,

Massachusetts, New Y o rk , Oregon, W ashington, Puerto Rico, and V irg in

Islands;

Private banks under S tate 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 b u t are

engaged in fid u c ia ry business o th e r than th a t incidental to real estate title or

investm ent activities.

Mutual savings banks include all banks operating under State banking

codes a p p lyin g to m u tual 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 rfo rm many o f the same fun ctio ns as

com m ercial and savings banks:

Banks th a t 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 d it

unions, personal loan com panies, and sim ila r in s titu tio n s , chartered under

laws ap plying to such in stitu tio n s or under general inco rp o ra tio n laws, regardless o f w hether such in stitu tio n s are authorized to accept deposits fro m

the pu 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 o f in s titu ­

tions included;

Branches o f foreign banks and private banks w hich con fin e th e ir business

to foreign exchange dealings and do n o 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 com panies and n o 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 of the State o f New Y o rk , w hich

operate as rediscount banks and do n o t accept deposits except fro m financial

in stitu tio n s.

Branches: Branches include all offices o f a bank o th e r than its head

office , at w hich deposits are received, checks paid, or m oney lent. Banking

facilities separate fro m a banking house, banking fa cilitie s 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 Deposit Insurance A ct, section 3(o), regardless o f

the fact th a t in certain States, including several th a t p ro h ib it the operation

o f branches, such lim ite d fa cilitie s are n o t considered branches w ith in the

meaning o f State law.

NUMBER OF BANKS AND BRANCHES 137

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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 1975

A ll banks Com m ercial banks and nondeposit tru s t companies M utual savings banks

Insured Noninsured

Type o f change

Total Insured

N oninsured Total

Total

Members F.R. 

System

N ot

m em ­

bers

F.R.

System

Banks

of

deposit

N ondeposit Total Insured

N oninsured

National State

com ­

panies1

A L L B A N K IN G O F F IC E S

Number of offices, December 31,1975 ....................................................... 47,238 46,465 773 44,916 44,568 21,074 5,452 18,042 261 87 2,322 1,897 425

Number of offices, December 31, 1974 ....................................................... 45,308 44,566 742 43,186 42,859 20,498 5,281 17,080 246 81 2,122 1,707 415

Net change during year . ...................................................................... +1,930 +1,899 +31 +1,730 +1,709 +576 +171 +962 +15 +6 +200 +190 +10

Offices ope ne d.................................................................................. 2,223 2,135 88 2,014 1,979 866 207 906 26 9 209 156 53

Banks ...................................................................................................................... 277 246 31 276 246 75 13 158 22 8 1 0 1

Branches................................................................................................................. 1,946 1,889 57 1,738 1,733 791 194 748 4 1 208 156 52

Offices close d.................................................................................... 293 281 12 284 277 132 63 82 4 3 9 4 5

Banks ...................................................................................................................... 108 99 9 103 96 39 12 45 4 3 5 3 2

Branches ................................................................................................................. 185 182 3 181 181 93 51 37 0 0 4 1 3

Changes in classification.................................................................... 0 +45 -4 5 0 +7 -1 5 8 +27 +138 - 7 0 0 +38 -3 8

A m ong b a n k s ....................................................................................................... 0 +17 - 1 7 0 +5 - 2 - 2 7 +34 - 5 0 0 +12 - 1 2

A m ong b ra n ch e s.................................................................................................. 0 +28 - 2 8 0 +2 -1 5 6 +54 +104 - 2 0 0 +26 - 2 6

B A N K S

Number of banks, December 31, 1975 ......................................................... 15,130 14,714 416 14,654 14,385 4,744 1,046 8,595 192 77 476 329 147

Number of banks, December 31,1974 ......................................................... 14,961 14,550 411 14,481 14,230 4,710 1,072 8,448 179 72 480 320 160

Net change during y e a r .......................................................................... +169 +164 +5 +173 +155 +34 -2 6 +147 +13 +5 - 4 +9 -1 3

Banks beginning operation................................................................. 277 246 31 276 246 75 13 158 22 8 1 0 1

New banks ............................................................................................................ 265 246 19 264 246 75 13 158 12 6 1 0 1

Banks added to c o u n t2 ...................................................................................... 12 0 12 12 0 0 0 0 10 2 0 0 0

Banks ceasing ope ration.................................................................... 108 99 9 103 96 39 12 45 4 3 5 3 2

A bsorptions, consolidations, and m e rg e rs.................................................. 99 96 3 94 93 38 12 43 1

0

0 5 3 2

Closed because o f financial d iffic u ltie s ....................................................... 3 3 0 3 3 1 0 2 0 0 0 0

O ther liq u id a tio n s ............................................................................................... 2 0 2 2 0 0 0 0 1 1 0 0 0

D iscontinued deposit operation .................................................................... 2 0 2 2 0 0 0 0 1 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 becoming insured ................................................. 0 +17 -1 7 0 +5 0 +1 +4 - 5 0 0 +12 -1 2

FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Other changes in classification ........................................................... 0 0 0 0 0 - 2 -2 8 +30 0 0 0 0 0

National succeeding State b a n k ..................................................... 0 0 0 0 0 +9 -1 - 8 0 0 0 0 0

State succeeding national b a n k ..................................................... 0 0 0 0 0 -1 1 +1 +10 0 0 0 0 0

Adm ission of insured bank to F.R. Sy ste m ................................... 0 0 0 0 0 0 +4 - 4 0 0 0 0 0

Withdrawal from F.R. System with continued insurance ............... 0 0 0 0 0 0 -3 2 +32 0 0 0 0 0

Changes not involving number in any class

Change in title ............................................................................. 290 287 3 281 281 98 26 157 0 0 9 6 3

Change in location........................................................................ 23 20 3 20 19 10 1 8 1 0 3 1 2

Change in title and location ........................................................ 6 6 0 6 6 3 1 2 0 0 0 0 0

Change in name of location ........................................................ 13 13 0 13 13 3 1 9 0 0 0 0 0

Change in location within city ..................................................... 391 374 17 377 365 125 15 225 6 6 14 9 5

Change in corporate powers

Granted trust p o w e rs .................................................................. 92 92 0 91 91 0 0 91 0 0 1 1 0

B R A N C H E S

Number of branches, December 31, 19753 ................................................... 32,108 31,751 357 30,262 30,183 16,330 4,406 9,447 69 10 1,846 1,568 278

Number of branches, December 3 1 ,19743 ................................................... 30,347 30,016 331 28,705 28,629 15,788 4,209 8,632 67 9 1,642 1,387 255

Net change during y e a r .......................................................................... +1,761 +1,735 +26 +1,557 +1,554 +542 +197 +815 +2 +1 +204 +181 +23

Branches opened for business............................................................ 1,946

1

1,889

1

57 1,738

1

1,733

1

791 194 748 4 1 208 156 52

Facilities designated by Treasury ................................................. 0 0 1 0 0 0 0 0 0

Absorbed bank converted to b ran ch ............................................. 85 84 1 81 81 37 7 37 0 0 4 3 1

Branch replacing head office relocated......................................... 45 44 1 43 43 18 2 23 0 0 2 1 1

New branches............................................................................. 1,741 1,723 18 1,575 1,571 722 177 672 3 1 166 152 14

Branches and/or facilities added to count2 ................................... 74 37 37 38 37 14 7 16 1 0 36 0 36

Branches discon tin u e d ...................................................................... 185 182 3 181 181 93 51 37 0 0 4 1 3

Facilities designated by Treasury ................................................. 5 5 0 5 5 4 1 0 0 0 0 0 0

B ranch es..................................................................................... 157 156 1 155 155 78 45 32 0 0 2 1 1

Branches and/or facilities deleted from c o u n t................................ 23 21 2 21 21 11 5 5 0 0 2 0 2

Other changes in classification .......................................................... 0 +28 -2 8 0 +2 -1 5 6 +54 +104 - 2 0 0 +26 -2 6

Branches changing class as a result of conversion............................ 0 0 0 0 0 - 5 +18 -1 3 0 0 0 0 0

Branches of noninsured banks admitted to insurance.................... 0 +28 -2 8 0 0 0 0 +2 - 2 0 0 +26 -2 6

Branches transferred through absorption, consolidation, or merger . 0 0 0 0 0 -1 5 1 +79 +72 0 0 0 0 0

Branches of insured banks withdrawing from F.R.S........................ 0 0 0 0 0 0 -4 3 +43 0 0 0 0 0

Changes not involving number in any class

Changes in operating powers of b ra n ch e s ..................................... 2 2 0 2 2 1 0 1 0 0 0 0 0

Branches transferred through absorption, consolidation, or merger . 102 102 0 102 99 37 11 51 0 0 3 3 0

Changes in title, location or name of loc atio n ................................ 621 618 3 621 586 297 61 228 0 0 35 32 3

11ncludes one noninsured nondeposit trust com pany that is a member of the Federal Reserve System.

2 Banks or branches opened prior to 1975 but not included in the count as of December 31, 1974.

in c lu d e s facilities established at the request of the Treasury or commanding officer of government installations and also a few seasonal branches that were not in operation as of December 31.

NUMBER OF BANKS AND BRANCHES 139

Digitized for FRASER 

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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 1975, BY STATE

State

In operation Net change

during 1975

Beginning operation in 1975 Ceasing operation in 1975

Dec. 31, 1975 Dec. 31, 1974 Banks Branches Banks Branches

Banks Branches Banks Branches Banks Branches New Other New Other Absorptions Other Branches Other

Total United State s ............... 14,654 30,262 14,481 28,705 +173 +1,557 264 12 1,613 125 94 9 155 26

50 States and D.C................... 14,630 29,979 14,458 28,432 +172 +1,547 262 12 1,599 125 94 8 152 25

Other a re a s........................... 24 283 23 273 +1 +10 2 0 14 0 0 1 3 1

States

A la b a m a .............................. 299 457 293 417 +6 +40 6 0 38 2 0 0 0 0

Alaska .................................. 11 88 10 81 +1 +7 2 0 6 1 1 0 0 0

A rizo n a ................................ 23 443 25 425 - 2 +18 1 1 20 2 2 2 4 0

Arkansas .............................. 262 318 262 281 0 +37 1 0 35 3 1 0 1 0

C a lifo rn ia ............................. 216 3,585 198 3,490 +18 +95 21 0 108 3 3 0 15 1

Colorado............................... 346 54 324 50 +22 +4 17 6 4 1 0 1 1 0

C o n n e c tic u t......................... 72 564 71 547 +1 +17 1 0 17 1 0 0 1 0

Delaw are.............................. 18 137 18 130 N A +7 0 0 8 0 0 0 1 0

District of C o lu m b ia ............. 16 130 16 126 0 +4 1 0 4 1 1 0 1 0

F lo r id a ................................ 747 196 716 121 +31 +75 31 0 74 2 0 0 1 0

G e o rgia ................................ 444 691 447 656 - 3 +35 3 0 37 6 6 0 7 1

H aw aii.................................. 11 154 12 151 -1 +3 0 0 3 0 0 1 0 0

Idaho.................................... 24 200 24 191 N A +9 0 0 9 0 0 0 0 0

Illinois ................................ 1,235 216 1,204 194 +31 +22 30 2 20 2 1 0 0 0

In d ia n a ................................ 407 909 410 842 - 3 +67 2 0 63 5 5 0 1 0

Io w a .................................... 661 408 665 385 - 4 +23 0 0 19 5 4 0 1 0

Kansas.................................. 616 151 613 127 +3 +24 4 0 25 0 1 0 1 0

Kentucky ............................. 342 509 342 471 0 +38 2 0 35 3 2 0 0 0

Louisiana ............................. 254 585 249 541 +5 +44 5 0 45 2 0 0 3 0

M a in e .................................. 48 287 49 277 -1 +10 1 0 12 1 2 0 2 1

M aryland............................... 115 751 114 703 +1 448 2 0 47 2 1 0 1 0

M assachusetts....................... 150 905 152 885 - 2 +20 0 0 26 2 2 0 6 2

M ich iga n .............................. 351 1,562 347 1,480 +4 +82 7 0 87 3 3 0 5 3

M in n e so ta............................. 747 52 745 32 +2 +20 2 0 19 2 0 0 0 1

Mississippi ........................... 185 546 181 503 +4 +43 7 0 39 5 3 0 1 0

Missouri .............................. 706 320 700 261 +6 +59 7 0 58 4 0 1 3 0

M o n ta n a .............................. 156 16 154 14 +2 +2 2 0 2 0 0 0 0 0

N ebraska............................... 453 96 453 83 N A +13 0 0 14 1 0 0 2 0

Nevada ................................ 8 111 8 105 N A +6 0 0 6 0 0 0 0 0

New Ham pshire..................... 79 112 82 99 - 3 +13 1 0 9 4 4 0 0 0

140 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
New J e rse y ........................... 209 1,417 218 1,336 -9 +81

New M e x ic o ......................... 81 206 77 189 +4 +17

New Y o r k ............................. 305 3,204 305 3,090 0 +114

North C a ro lin a ..................... 94 1,585 92 1,547 +2 +38

North D a k o t a ....................... 172 89 171 80 +1 +9

O h io .................................... 496 1,674 498 1,613 -2 +61

O k lah o m a............................. 467 99 460 96 +7 +3

Oregon.................................. 47 447 49 420 - 2 +27

Pennsylvania......................... 398 2,275 406 2,193 - 8 +82

Rhode Islan d ......................... 16 220 16 214 N A +6

South C a ro lin a ..................... 90 601 91 581 -1 +20

South D a k o t a ....................... 158 125 158 115 0 +10

Tennessee............................. 344 772 337 723 +7 +49

Texas .................................. 1,342 138 1,313 123 +29 +15

U t a h .................................... 64 204 55 186 +9 + 18

V e rm o n t............................... 32 139 34 131 - 2 +8

Virginia .............................. 291 1,173 288 1,112 +3 +61

W ash in gton........................... 98 685 93 661 +5 +24

West Virginia ....................... 219 35 214 26 +5 +9

W isco n sin ............................. 628 336 625 326 +3 +10

W yom ing ............................. 77 2 74 2 +3 N A

Other areas

Pacific Isla n d s....................... 1 32 1 28 NA +4

Canal Z o n e ........................... 0 2 0 2 N A N A

Puerto R ic o ........................... 15 221 14 214 +1 +7

Virgin Is la n d s ....................... 8 28 8 29 0 -1

N A - N o activity.

3 0 76 14 12 0 8 1

4 0 17 1 0 0 1

5 3 133 9 8 0 27 1

2 0 51 1 0 0 9

1 0 10 0 0 0 0 1

1 0 64 2 3 0 4 1

7 0 5 0 0 0 0

0 0 30 2 2 0 5

2 0 85 10 9 1 12 1

0 0 7 0 0 0 0 1

2 0 20 4 3 0 4 0

1 0 7 3 1 0 0 0

8 0 51 3 1 0 5 0

33 0 15 1 2 2 1 0

9 0 18 0 0 0 0 0

0 0 6 2 2 0 0 0

8 0 72 7 5 0 15 3

7 0 22 2 2 0 0 0

5 0 9 0 0 0 0 0

5 0 12 1 2 0 3 0

3 0 0 0 0 0 0 0

0 0 4 0 0 0 0 0

0 0 0 0 0 0 0 0

1 0 7 0 0 0 0 0

1 0 3 0 0 1 3 1

NUMBER OF BANKS AND BRANCHES

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 103. N U M BER OF B A N K IN G O FFIC ES IN THE U N ITED STATES (STATES A N D O TH ER A R EA S), D EC EM BER 31, 1975

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

State and type of bank

or office

All banks Commercial banks and nondeposit trust companies Mutual savings banks Percentage insured1

Total Insured

Noninsured Total

Insured Noninsured

Total Insured

N oninsured

All

banks

of

deposit

Com ­

mercial

banks

of

deposit

Mutual

savings

banks

Total

Members F.R.

System

Nonmembers

F.R.

System

Banks

of deposit2

N ondeposit

trust

com ­

panies9 National State

United States-all o ffic e s ........... 47,238 46,465 773 44,916 44,568 21,074 5,452 18,042 261 87 2,322 1,897 425 98.5 99.4 81.7

B a n k s .................................. 15,130 14,714 416 14,654 14,385 4,744 1,046 8,595 192 77 476 329 147 97.7 98.7 69.1

Unit banks....................... 9,211 8,927 284 9,114 8,869 2,649 544 5,676 174 71 97 58 39 97.7 98.1 59.8

Banks operating branches . 5,919 5,787 132 5,540 5,516 2,095 502 2,919 18 6 379 271 108 97.9 99.7 71.5

Branches.............................. 32,108 31,751 357 30,262 30,183 16,330 4,406 9,447 69 10 1,846 1,568 278 98.9 99.8 84.9

50 States & D .C .-all o f f ic e s ------ 46,930 46,198 732 44,609 44,302 21,010 5,452 17,840 220 87 2,321 1,896 425 98.6 99.5 81.7

B a n k s .................................. 15,105 14,701 404 14,630 14,373 4,741 1,046 8,586 180 77 475 328 147 97.8 98.8 69.1

Unit banks....................... 9,201 8,925 276 9,105 8,868 2,648 544 5,676 166 71 96 57 39 97.8 98.2 59.4

Banks operating branches . 5,904 5,776 128 5,525 5,505 2,093 502 2,910 14 6 379 271 108 97.9 99.7 71.5

Branches.............................. 31,825 31,497 328 29,979 29,929 16,269 4,406 9,254 40 10 1,846 1,568 278 99.0 99.9 84.9

Other areas-all offices............... 308 267 41 307 266 64 0 202 41 0 1 1 0 86.7 86.6 100.0

Banks .................................. 25 13 12 24 12 3 0 9 12 0 1 1 0 52.0 50.0 100.0

Unit banks....................... 10 2 8 9 1 1 0 0 8 0 7 7 0 20.0 77.7 100.0

Banks operating branches . 15 11 4 15 11 2 0 9 4 0 0 0 0 73.3 73.3 0.0

Branches.............................. 283 254 29 283 254 61 0 193 29 0 0 0 0 89.8 89.8 0.0

State

Alabam a— all offices................... 756 756 0 756 756 389 40 327 0 0 0 0 0 100.0 100.0 0.0

B a n k s .................................. 299 299 0 299 299 95 18 186 0 0 0 0 0 100.0 100.0 0.0

Unit banks..................... 158 158 0 158 158 33 11 114 0 0 0 0 0 100.0 100.0 0.0

Banks operating branches . 141 141 0 141 141 62 7 72 0 0 0 0 0 100.0 100.0 0.0

Branches.............................. 457 457 0 457 457 294 22 141 0 0 0 0 0 100.0 100.0 0.0

Alask a-all o ffic e s ..................... 103 103 0 99 99 77 0 22 0 0 4 4 0 100.0 100.0 100.0

Banks .............................. 13 13 0 11 11 6 0 5 0 0 2 2 0 100.0 100.0 100.0

Unit banks....................... 3 3 0 2 2 1 0 7 0 0 7 7 0 100.0 100.0 100.0

Banks operating branches . 10 10 0 9 9 5 0 4 0 0 7 7 0 100.0 100.0 100.0

Branches.............................. 90 90 0 88 88 71 0 17 0 0 2 2 0 100.0 100.0 100.0

Arizona— all o ffic e s ................... 466 458 8 466 458 304 0 154 0 8 0 0 0 100.0 100.0 0.0

Banks .................................. 23 15 8 23 15 3 0 12 0 8 0 0 0 100.0 100.0 0.0

Unit banks....................... 14 6 8 14 6 1 0 5 0 8 0 0 0 100.0 100.0 0.0

Banks operating branches . 9 9 0 9 9 2 0 7 0 0 0 0 0 100.0 100.0 0.0

Branches............................... 443 443 0 443 443 301 0 142 0 0 0 0 0 100.0 100.0 0.0

142 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
A rkansas-all offices................... 580 576 4 580 576 236 27

Banks .................................. 262 258 4 262 258 75 8

Unit banks..................... 124 120 4 124 120 19 7

Banks operating branches . 138 138 0 138 138 56 7

Branches ............................. 318 318 0 318 318 161 19

California-all o ffice s ................. 3,801 3,778 23 3,801 3,778 2,715 333

B a n k s .................................. 216 200 16 216 200 57 8

Unit banks..................... 79 67 12 79 67 12 0

Banks operating branches . 137 133 4 137 133 45 8

Branches3 ............................. 3,585 3,578 7 3,585 3,578 2,658 325

Colorado— all o ffic e s ................. 400 331 69 400 331 163 20

Banks .................................. 346 277 69 346 277 132 17

Unit banks....................... 296 227 69 296 227 103 15

Banks operating branches . 50 50 0 50 50 29 2

Branches ............................. 54 54 0 54 54 31 3

Connecticut-all office s.............. 957 956 1 636 635 282 82

Banks .................................. 139 138 1 72 71 24 2

Unit banks..................... 27 26 7 16 15 3 7

Banks operating branches . 112 112 0 56 56 21 7

Branches............................... 818 818 0 564 564 258 80

Delaware-all o ffic e s ................. 179 178 1 155 154 9 0

B a n k s .................................. 20 19 1 18 17 5 0

Unit banks....................... 8 7 7 8 7 2 0

Banks operating branches . 12 12 0 10 10 3 0

Branches............................... 159 159 0 137 137 4 0

D .C .-all o ffice s ......................... 146 146 0 146 146 113 30

Banks .................................. 16 16 0 16 16 14 1

Unit banks..................... 3 3 0 3 3 3 0

Banks operating branches . 13 13 0 13 13 11 1

Branches............................... 130 130 0 130 130 99 29

Florida-all o ffice s ..................... 943 939 4 943 939 360 34

Banks .................................. 747 743 4 747 743 295 31

Unit banks....................... 573 569 4 573 569 234 29

Banks operating branches . 174 174 0 174 174 61 2

Branches.............................. 196 196 0 196 196 65 3

Georgia-all offices ................... 1,135 1,132 3 1,135 1,132 387 82

Banks .................................. 444 441 3 444 441 64 9

Unit banks..................... 231 228 3 231 228 77 2

Banks operating branches . 213 213 0 213 213 47 7

Branches.............................. 691 691 0 691 691 323 73

H aw aii-all o ffic e s ..................... 165 159 6 165 159 13 0

Banks .................................. 11 8 3 11 8 2 0

Unit banks....................... 1 0 7 7 0 0 0

Banks operating branches . 10 8 2 10 8 2 0

Branches.............................. 154 151 3 154 151 11 0

313 1 3 0 0 0 99.8 99.8 0.0

175 1 3 0 0 0 99.6 99.6 0.0

100 7 3 0 0 0 99.2 99.2 0.0

75 0 0 0 0 0 100.0 100.0 0.0

138 0 0 0 0 0 100.0 100.0 0.0

730 0 23 0 0 0 100.0 100.0 0.0

135 0 16 0 0 0 100.0 100.0 0.0

55 0 12 0 0 0 100.0 100.0 0.0

80 0 4 0 0 0 100.0 100.0 0.0

595 0 1 0 0 0 100.0 100.0 0.0

148 69 0 0 0 0 82.8 82.8 0.0

128 69 0 0 0 0 80.1 80.1 0.0

109 69 0 0 0 0 76.7 76.7 0.0

19 0 0 0 0 0 100.0 100.0 0.0

20 0 0 0 0 0 100.0 100.0 0.0

271 1 0 321 321 0 99.9 99.8 100.0

45 1 0 67 67 0 99.3 98.6 100.0

77 7 0 77 77 0 96.3 93.8 100.0

34 0 0 56 56 0 100.0 100.0 100.0

226 0 0 254 254 0 100.0 100.0 100.0

145 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 7 0 0 0 100.0 100.0 0.0

7 0 0 2 2 0 100.0 100.0 100.0

133 0 0 22 22 0 100.0 100.0 100.0

3 0 0 0 0 0 100.0 100.0 0.0

1 0 0 0 0 0 100.0 100.0 0.0

0 0 0 0 0 0 100.0 100.0 0.0

1 0 0 0 0 0 100.0 100.0 0.0

2 0 0 0 0 0 100.0 100.0 0.0

545 1 3 0 0 0 99.9 99.9 0.0

417 1 3 0 0 0 99.9 99.9 0.0

306 7 3 0 0 0 99.8 99.8 0.0

111 0 0 0 0 0 100.0 100.0 0.0

128 0 0 0 0 0 100.0 100.0 0.0

663 3 0 0 0 0 99.7 99.7 0.0

368 3 0 0 0 0 99.3 99.3 0.0

209 3 0 0 0 0 98.7 98.7 0.0

159 0 0 0 0 0 100.0 100.0 0.0

295 0 0 0 0 0 100.0 100.0 0.0

146 0 6 0 0 0 100.0 100.0 0.0

6 0 3 0 0 0 100.0 100.0 0.0

0 0 7 0 0 0 0.0 0.0 0.0

6 0 2 0 0 0 100.0 100.0 0.0

140 0 3 0 0 0 100.0 100.0 0.0

NUMBER OF BANKS AND BRANCHES 143

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),

DECEM BER 31, 1975-CO N TIN U ED

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

State and type of bank

or office

All banks Commercial banks and nondeposit trust companies Mutual savings banks Percentage insured1

Total Insured

N oninsured Total

Insured Noninsured

Total Insured

Noninsured

All

banks

of

deposit

Com ­

mercial

banks

of

deposit

Mutual

savings

banks

Total

Members F.R.

System

Nonmembers

F.R.

System

Banks

of deposit2

N ondeposit

trust

companies9

National State

Id ah o-all o ffic e s ....................... 224 224 0 224 224 167 10 47 0 0 0 0 0 100.0 100.0 0.0

Banks .................................. 24 24 0 24 24 6 4 14 0 0 0 0 0 100.0 100.0 0.0

Unit banks....................... 10 10 0 10 10 1 2 7 0 0 0 0 0 100.0 100.0 0.0

Banks operating branches . 14 14 0 14 14 5 2 7 0 0 0 0 0 100.0 100.0 0.0

Branches.............................. 200 200 0 200 200 161 6 33 0 0 0 0 0 100.0 100.0 0.0

Illinois-all o ffic e s ..................... 1,451 1,422 29 1,451 1,422 529 84 809 22 7 0 0 0 98.5 98.5 0.0

Banks .................................. 1.235 1,206 29 1,235 1,206 421 69 716 22 7 0 0 0 98.2 98.2 0.0

Unit banks....................... 1,024 995 29 1,024 995 317 54 624 22 7 0 0 0 97.8 97.8 0.0

Banks operating branches . 211 211 0 211 211 104 15 92 0 0 0 0 0 100.0 100.0 0.0

Branches.............................. 216 216 0 216 216 108 15 93 0 0 0 0 0 100.0 100.0 0.0

Indiana-all offices ................... 1,322 1,320 2 1,316 1,314 585 97 632 1 1 6 6 0 99.9 99.9 100.0

Banks .................................. 411 409 2 407 405 120 46 239 1 1 4 4 0 99.8 99.8 100.0

Unit banks....................... 166 164 2 164 162 35 22 105 1 7 2 2 0 99.4 99.4 100.0

Banks operating branches . 245 245 0 243 243 85 24 134 0 0 2 2 0 100.0 100.0 100.0

Branches ............................. 911 911 0 909 909 465 51 393 0 0 2 2 0 100.0 100.0 100.0

Io w a-all offices......................... 1,069 1,062 7 1,069 1,062 183 90 789 6 1 0 0 0 99.4 99.4 0.0

B a n k s .................................. 661 654 7 661 654 100 46 508 6 1 0 0 0 99.1 99.1 0.0

Unit banks....................... 410 403 7 410 403 52 26 325 6 7 0 0 0 98.5 98.5 0.0

Banks operating branches . 251 251 0 251 251 48 20 183 0 0 0 0 0 100.0 100.0 0.0

Branches.............................. 408 408 0 408 408 83 44 281 0 0 0 0 0 100.0 100.0 0.0

Kansas-all o ffic e s ..................... 767 766 1 767 766 235 29 502 1 0 0 0 0 99.9 99.9 0.0

B a n k s .................................. 616 615 1 616 615 171 22 422 1 0 0 0 0 99.8 99.8 0.0

Unit banks..................... 507 506 7 507 506 128 16 362 7 0 0 0 0 99.8 99.8 0.0

Banks operating branches . 109 109 0 109 109 43 6 60 0 0 0 0 0 100.0 100.0 0.0

Branches............................... 151 151 0 151 151 64 7 80 0 0 0 0 0 100.0 100.0 0.0

Ken tu ck y-all o ffice s ................. 851 850 1 851 850 286 96 468 1 0 0 0 0 99.9 99.9 0.0

B a n k s .................................. 342 341 1 342 341 80 11 250 1 0 0 0 0 99.7 99.7 0.0

Unit banks....................... 167 166 1 167 166 25 4 137 7 0 0 0 0 99.4 99.4 0.0

Banks operating branches . 175 175 0 175 175 55 7 113 0 0 0 0 0 100.0 100.0 0.0

Branches.............................. 509 509 0 509 509 206 85 218 0 0 0 0 0 100.0 100.0 0.0

144 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Louisiana-all o ffic e s ................. 839 839 0 839 839 295 52

B a n k s .................................. 254 254 0 254 254 53 8

Unit banks....................... 88 88 0 88 88 12 1

Banks operating branches . 166 166 0 166 166 41 7

Branches............................... 585 585 0 585 585 242 44

M aine-all o ffices ....................... 424 420 4 335 332 149 35

B a n k s .................................. 80 76 4 48 45 20 3

Unit banks....................... 15 11 4 7 4 7 0

Banks operating branches . 65 65 0 41 41 19 3

Branches............................... 344 344 0 287 287 129 32

M aryland-all o ffic e s ................. 913 913 0 866 866 404 92

B a n k s .................................. 118 118 0 115 115 42 5

Unit banks....................... 38 38 0 38 38 9 1

Banks operating branches . 80 80 0 77 77 33 4

Branches.............................. 795 795 0 751 751 362 87

Massachusetts-all offices........... 1,578 1,146 432 1,055 1,047 580 180

Banks .................................. 316 165 151 150 145 77 13

Unit banks....................... 67 26 41 23 20 10 0

Banks operating branches . 249 139 110 127 125 67 13

Branches3 ............................. 1,262 981 281 905 902 503 167

M ichigan-all o f f ic e s ................. 1,913 1,910 3 1,913 1,910 869 568

B a n k s .................................. 351 350 1 351 350 120 89

Unit banks....................... 88 88 0 88 88 20 20

Banks operating branches . 263 262 1 263 262 100 69

Branches............................... 1,562 1,560 2 1,562 1,560 749 479

M innesota-all o f f ic e s ............... 801 799 2 799 797 226 32

B a n k s .................................. 748 746 2 747 745 201 30

Unit banks....................... 700 698 2 700 698 181 28

Banks operating branches . 48 48 0 47 47 20 2

Branches ............................. 53 53 0 52 52 25 2

M ississippi-all o ffic e s ............... 731 731 0 731 731 250 23

B a n k s .................................. 185 185 0 185 185 39 6

Unit banks....................... 53 53 0 53 53 7 2

Banks operating branches . 132 132 0 132 132 32 4

Branches............................... 546 546 0 546 546 211 17

M issou ri-all o ffic e s ................... 1,026 1,020 6 1,026 1,020 180 96

B a n k s .................................. 706 700 6 706 700 113 61

Unit banks....................... 441 435 6 441 435 62 34

Banks operating branches . 265 265 0 265 265 51 27

Branches.............................. 320 320 0 320 320 67 35

M on tan a-all offices ................... 172 170 2 172 170 61 50

B a n k s .................................. 156 154 2 156 154 55 45

Unit banks....................... 140 138 2 140 138 49 40

Banks operating branches . 16 16 0 16 16 6 5

Branches............................... 16 16 0 16 16 6 5

492 0 0 0

193 0 0 0

75 0 0 0

118 0 0 0

299 0 0 0

148 3 0 89

22 3 0 32

3 3 0 8

19 0 0 24

126 0 0 57

370 0 0 47

68 0 0 3

28 0 0 0

40 0 0 3

302 0 0 44

287 8 0 523

55 5 0 166

10 3 0 44

45 2 0 122

232 3 0 357

473 3 0 0

141 1 0 0

48 0 0 0

93 1 0 0

332 2 0 0

539 2 0 2

514 2 0 1

489 2 0 0

25 0 0 1

25 0 0 1

458 0 0 0

140 0 0 0

44 0 0 0

96 0 0 0

318 0 0 0

744 2 4 0

526 2 4 0

339 2 4 0

187 0 0 0

218 0 0 0

59 0 2 0

54 0 2 0

49 0 2 0

5 0 0 0

5 0 0 0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

1 99.1 99.1 98.9

1 95.0 93.8 96.9

7 73.3 57.1 87.5

0 100.0 100.0 100.0

0 100.0 100.0 100.0

0 100.0 100.0 100.0

0 100.0 100.0 100.0

0 100.0 100.0 0.0

0 100.0 100.0 100.0

0 100.0 100.0 100.0

424 72.6 99.2 18.9

146 52.2 96.7 12.0

38 38.8 87.0 13.6

108 55.8 98.4 11.5

278 77.7 99.7 22.1

0 99.8 99.8 0.0

0 99.7 99.7 0.0

0 100.0 100.0 0.0

0 99.6 99.6 0.0

0 99.9 99.9 0.0

0 99.8 99.7 100.0

0 99.7 99.7 100.0

0 99.7 99.7 0.0

0 100.0 100.0 100.0

0 100.0 100.0 100.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 99.8 99.8 0.0

0 99.7 99.7 0.0

0 99.5 99.5 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0

0

0

0

0

88

31

7

24

57

47

3

0

3

44

99

20

6

14

79

0

0

0

0

0

2

1

0

1

1

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

NUMBER OF BANKS AND BRANCHES 145

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
-p*

o>

Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEM BER 31, 1975-CO NTINUED

GROUPED ACCORDING TO INSU RANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

State and type o f bank 

or office

A ll banks Commercial banks and nondeposit tru st companies M utual savings banks Percentage insured1

Total Insured

N o n ­

insured Total

Insured Noninsured

Total Insured

N oninsured

All

banks

of

depo sit2

C om ­

mercial

banks

o f

deposit

M utual

savings

banks

Total

Members F.R. 

System

N onm em ­

bers

F.R.

System

Banks 

o f depo sit2

Nondeposit

tru st

com ­

panies9 National State

Nebraska-all o ffic e s ................. 549 544 5 549 544 169 10 365 0 5 0 0 0 100.0 100.0 0.0

Banks ............................................. 453 448 5 453 448 120 8 320 0 5 0 0 0 100.0 100.0 0.0

Unit banks....................... 383 378 5 383 378 85 7 286 0 5 0 0 0 100.0 100.0 0.0

Banks operating branches . 70 70 0 70 70 35 7 34 0 0 0 0 0 100.0 100.0 0.0

Branches........................................ 96 96 0 96 96 49 2 45 0 0 0 0 0 100.0 100.0 0.0

Nevada-all office s ..................... 119 119 0 119 119 81 18 20 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 1 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

Branches........................................ 111 111 0 111 111 77 17 17 0 0 0 0 0 100.0 100.0 0.0

New H am pshire-all o ffic e s........ 246 244 2 191 189 129 3 57 1 1 55 55 0 99.6 99.5 100.0

Banks ............................................. 107 105 2 79 77 44 1 32 1 1 28 28 0 99.1 98.7 100.0

Unit banks....................... 46 44 2 30 28 12 0 16 1 1 16 16 0 97.8 96.6 100.0

Banks operating branches . 61 61 0 49 49 32 7 16 0 0 12 12 0 100.0 100.0 100.0

Branches........................................ 139 139 0 112 112 85 2 25 0 0 27 27 0 100.0 100.0 100.0

New Jersey-all offices............... 1,751 1,751 0 1,626 1,626 1,081 241 304 0 0 125 125 0 100.0 100.0 100.0

Banks ............................................. 229 229 0 209 209 113 21 75 0 0 20 20 0 100.0 100.0 100.0

Unit banks..................... 40 40 0 35 35 14 0 21 0 0 5 5 0 100.0 100.0 100.0

Banks operating branches . 189 189 0 174 174 99 21 54 0 0 15 15 0 100.0 100.0 100.0

Branches........................................ 1,522 1,522 0 1,417 1,417 968 220 229 0 0 105 105 0 100.0 100.0 100.0

New M e xico -all office s ............. 287 286 1 287 286 147 21 118 0 1 0 0 0 100.0 100.0 0.0

Banks ............................................. 81 80 1 81 80 36 7 37 0 1 0 0 0 100.0 100.0 0.0

Unit banks....................... 20 19 1 20 19 7 2 10 0 1 0 0 0 100.0 100.0 0.0

Banks operating branches . 61 16 0 61 61 29 5 27 0 0 0 0 0 100.0 100.0 0.0

B ranches........................................ 206 206 0 206 206 111 14 81 0 0 0 0 0 100.0 100.0 0.0

New Y o r k -a ll offices................. 4,269 4,222 47 3,509 3,462 1,671 1,576 215 42 5 760 760 0 99.0 98.8 m o

Banks ............................................. 423 385 38 305 267 150 70 47 33 5 118 118 0 92.1 89.0 100.0

Unit banks....................... 104 72 32 100 68 38 12 18 27 5 4 4 0 72.7 71.6 100.0

Banks operating branches . 319 313 6 205 199 112 58 29 6 0 114 114 0 98.1 97.1 100.0

Branches3 ...................................... 3,846 3,837 9 3,204 3,195 1,521 1,506 168 9 0 642 642 0 99.8 99.7 100.0

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 ............. 1,679 1,668 11 1,679 1,668 791 5

B a n k s ............................................. 94 93 1 94 93 26 3

Unit banks....................... 22 22 0 22 22 4 2

Banks operating branches . 72 71 1 72 71 22 1

B ranches........................................ 1,585 1,575 10 1,585 1,575 765 2

N orth D a k o ta -a ll o ffic e s ............... 261 254 7 261 254 66 6

Banks ............................................. 172 169 3 172 169 43 4

Unit banks....................... 107 105 2 107 105 23 3

Banks operating branches . 65 64 1 65 64 20 1

Branches........................................ 89 85 4 89 85 23 2

O h io -a ll o ffic e s ................................. 2,170 2,169 1 2,170 2,169 1,198 519

Banks ............................................. 496 495 1 496 495 219 112

Unit banks...................... 164 163 1 164 163 48 46

Banks operating branches . 332 332 0 332 332 171 66

B ranches........................................ 1,674 1,674 0 1,674 1,674 979 407

O k la h o m a -a ll o f f ic e s .................... 566 561 5 566 561 251 16

B a n k s ............................................. 467 462 5 467 462 194 14

Unit banks....................... 371 366 5 371 366 140 12

Banks operating branches . 96 96 0 96 96 54 2

B ranches........................................ 99 99 0 99 99 57 2

O re g o n -a ll o ffic e s ............................ 500 498 2 494 492 306 0

B a n k s .............................................. 48 46 2 47 45 7 0

Unit banks....................... 18 16 2 18 16 1 0

Banks operating branches . 30 30 0 29 29 6 0

Branches3 ...................................... 452 452 0 447 447 299 0

P e nnsylvania-all o ffic e s .................. 2,847 2,839 8 2,673 2,665 1,600 198

Banks .............................................. 406 400 6 398 392 244 14

Unit banks..................... 138 133 5 138 133 92 6

Banks operating branches . 268 267 1 260 259 152 8

Branches3 ...................................... 2,441 2,439 2 2,275 2,273 1,356 184

Rhode Is la n d -a ll o ffic e s ............... 308 296 12 236 224 119 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........................................ 286 276 10 220 210 114 0

South C a ro lin a -a ll o ffic e s ............. 691 691 0 691 691 316 15

Banks ............................................. 90 90 0 90 90 19 6

Unit banks..................... 27 27 0 27 27 3 2

Banks operating branches . 63 63 0 63 63 16 4

B ranches........................................ 601 601 0 601 601 297 9

South D a k o ta -a ll o ffic e s ............... 283 283 0 283 283 107 42

B a n k s ............................................. 158 158 0 158 158 32 28

Unit banks....................... 110 110 0 110 110 21 19

Banks operating branches . 48 48 0 48 48 11 9

B ranches........................................ 125 125 0 125 125 75 14

872 11 0 0 0 0 99.3 99.3 0.0

64 1 0 0 0 0 98.9 98.9 0.0

16 0 0 0 0 0 100.0 100.0 0.0

48 1 0 0 0 0 98.6 98.6 0.0

808 10 0 0 0 0 99.4 99.4 0.0

182 7 0 0 0 0 97.3 97.3 0.0

122 3 0 0 0 0 98.3 98.3 0.0

79 2 0 0 0 0 98.1 98.1 0.0

43 1 0 0 0 0 98.5 98.5 0.0

60 4 0 0 0 0 95.5 95.5 0.0

452 1 0 0 0 0 100.0 100.0 0.0

164 1 0 0 0 0 99.8 99.8 0.0

69 1 0 0 0 0 99.4 99.4 0.0

95 0 0 0 0 0 100.0 100.0 0.0

288 0 0 0 0 0 100.0 100.0 0.0

294 1 4 0 0 0 99.8 99.8 0.0

254 1 4 0 0 0 99.8 99.8 0.0

214 7 4 0 0 0 99.7 99.7 0.0

40 0 0 0 0 0 100.0 100.0 0.0

40 0 0 0 0 0 100.0 100.0 0.0

186 2 0 6 6 0 99.6 99.6 100.0

38 2 0 1 1 0 95.8 95.7 100.0

15 2 0 0 0 0 88.9 88.9 0.0

23 0 0 1 1 0 100.0 100.0 100.0

148 0 0 5 5 0 100.0 100.0 100.0

867 6 2 174 174 0 99.8 99.8 100.0

134 4 2 8 8 0 99.0 99.0 100.0

35 3 2 0 0 0 97.8 97.8 0.0

99 1 0 8 8 0 99.6 99.6 100.0

733 2 0 166 166 0 99.9 99.9 100.0

105 12 0 72 72 0 96.1 94.9 100.0

9 2 0 6 6 0 90.9 87.5 100.0

3 0 0 0 0 0 100.0 100.0 0.0

6 2 0 6 6 0 89.5 84.6 100.0

96 10 0 66 66 0 96.5 95.5 100.0

360 0 0 0 0 0 100.0 100.0 0.0

65 0 0 0 0 0 100.0 100.0 0.0

22 0 0 0 0 0 100.0 100.0 0.0

43 0 0 0 0 0 100.0 100.0 0.0

295 0 0 0 0 0 100.0 100.0 0.0

134 0 0 0 0 0 100.0 100.0 0.0

98 0 0 0 0 0 100.0 100.0 0.0

70 0 0 0 0 0 100.0 100.0 0.0

28 0 0 0 0 0 100.0 100.0 0.0

36 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
00

Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

D ECEM BER 31, 1975-CONTINU ED

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

State and type 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 T otal

Insured N oninsured

T otal Insured

N oninsured

A ll

banks

o f

deposit

C om ­

m ercial

banks

o f

deposit

M utual

savings

banks

Total

Members F.R. 

System

Nonm em ­

bers

F.R.

System

Banks 

o f dep o sit2

N ondeposit

trust

com ­

panies9

National State

Tennessee-all o ffic e s ....................... 1,116 1,114 2 1,116 1,114 443 65 606 1 1 0 0 0 99.9 99.9 0.0

Banks ............................................. 344 342 2 344 342 75 15 252 1 1 0 0 0 99.7 99.7 0.0

Unit banks....................... 129 127 2 129 127 11 6 110 1 1 0 0 0 99.2 99.2 0.0

Banks operating branches . 215 215 0 215 215 64 9 142 0 0 0 0 0 100.0 100.0 0.0

Branches........................................ 772 772 0 112 112 368 50 354 0 0 0 0 0 100.0 100.0 0.0

Texas— all o ffic e s .............................. 1,480 1,474 6 1,480 1,474 605 54 815 6 0 0 0 0 99.6 9 9.6 0.0

Banks ............................................. 1,342 1,336 6 1,342 1,336 584 39 713 6 0 0 0 0 99.6 99.6 0.0

Unit banks....................... 1,219 1,213 6 1,219 1213 565 26 622 6 0 0 0 0 99.5 99.5 0.0

Banks operating branches . 123 123 0 123 123 19 13 91 0 0 0 0 0 100.0 100.0 0.0

B ranches........................................ 138 138 0 138 138 21 15 102 0 0 0 0 0 100.0 100.0 0.0

U ta h -a ll o ffic e s ................................. 268 267 1 268 267 113 44 110 0 1 0 0 0 100.0 100.0 0.0

B a n k s ............................................. 64 63 1 64 63 12 5 46 0 1 0 0 0 100.0 100.0 0.0

Unit banks....................... 41 40 1 41 40 7 2 31 0 1 0 0 0 100.0 100.0 0.0

Banks operating branches . 23 23 0 23 23 5 3 15 0 0 0 0 0 100.0 100.0 0.0

B ranches........................................ 204 204 0 204 204 101 39 64 0 0 0 0 0 100.0 100.0 0.0

V e rm o n t-a ll o ffic e s ......................... 185 184 1 171 170 64 0 106 0 1 14 14 0 100.0 100.0 100.0

B a n k s ............................................. 38 37 1 32 31 16 0 15 0 1 6 6 0 100.0 100.0 100.0

Unit banks....................... 9 8 1 7 6 4 0 2 0 1 2 2 0 100.0 100.0 100.0

Banks operating branches . 29 29 0 25 25 12 0 13 0 0 4 4 0 100.0 100.0 100.0

B ranches........................................ 147 147 0 139 139 48 0 91 0 0 8 8 0 100.0 100.0 100.0

V irg in ia -a ll o ffic e s ......................... 1,464 1,463 1 1,464 1,463 777 293 393 0 1 0 0 0 100.0 100.0 0.0

B a n k s ............................................. 291 290 1 291 290 108 66 116 0 1 0 0 0 100.0 100.0 0.0

Unit banks....................... 87 86 1 87 86 77 27 42 0 1 0 0 0 100.0 100.0 0.0

Banks operating branches . 204 204 0 204 204 91 39 74 0 0 0 0 0 100.0 100.0 0.0

B ranches........................................ 1,173 1,173 0 1,173 1,173 669 227 277 0 0 0 0 0 100.0 100.0 0.0

W a sh in g to n -a ll o f fic e s .................. 879 872 7 783 776 549 43 184 6 1 96 96 0 99.3 99.2 100.0

B a n k s ............................................. 106 99 7 98 91 24 5 62 6 1 8 8 0 94.3 93.8 100.0

Unit banks....................... 44 37 7 44 37 6 2 29 6 1 0 0 0 86.0 86.0 0.0

Banks operating branches . 62 62 0 54 54 18 3 33 0 0 8 8 0 100.0 100.0 100.0

Branches? ...................................... 773 773 0 685 685 525 38 122 0 0 88 88 0 100.0 100.0 100.0

FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
West V irgin ia-all o ffic e s ............ 254

Banks .................................. 219

Unit banks................ 184

Banks operating branches . 35

Branches............................... 35

W isconsin-all offices ................. 967

Banks .................................. 631

Unit banks................ 428

Banks operating branches . 203

Branches............................... 336

W yom ing-all o ffic e s ................. 79

B a n k s .................................. 77

Unit banks................ 75

Banks operating branches . 2

Branches............................... 2

Other areas

Pacific Is.— all offices4. ............... 33

Banks .................................. 1

Unit banks................ 0

Banks operating branches . 1

Branches5 ............................. 32

Canal Zo n e -all offices............... 2

B a n k s .................................. 0

Unit banks................ 0

Banks operating branches . 0

Branches6 ............................. 2

Puerto R ic o -a ll o ffic e s.............. 237

B a n k s .................................. 16

Unit banks................ 4

Banks operating branches . 12

Branches7 ............................. 221

Virgin Islands— all office s............ 36

B a n k s .................................. 8

Unit banks................ 6

Banks operating branches . 2

Branches8 ............................. 28

0 254 254 122 33

0 219 219 103 29

0 184 184 84 25

0 35 35 19 4

0 35 35 19 4

5 964 959 212 54

5 628 623 128 32

5 425 420 84 22

0 203 203 44 10

0 336 336 84 22

0 79 79 46 14

0 77 77 45 14

0 75 75 44 14

0 2 2 1 0

0 2 2 1 0

12 33 21 10 0

0 1 1 0 0

0 0 0 0 0

0 1 1 0 0

12 32 20 10 0

2 2 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

2 2 0 0 0

21 236 215 24 0

6 15 9 1 0

2 3 1 7 0

4 12 8 0 0

15 221 206 23 0

6 36 30 30 0

6 8 2 2 0

6 6 0 0 0

0 2 2 2 0

0 28 28 28 0

254

219

184

35

35

962

626

423

203

336

79

77

75

2

2

21

1

0

1

20

0

0

0

0

0

216

10

2

8

206

30

2

0

2

28

99 0 0 0 0 0 100.0 100.0 0.0

87 0 0 0 0 0 100.0 100.0 0.0

75 0 0 0 0 0 100.0 100.0 0.0

12 0 0 0 0 0 100.0 100.0 0.0

12 0 0 0 0 0 100.0 100.0 0.0

693 0 5 3 3 0 100.0 100.0 100.0

463 0 5 3 3 0 100.0 100.0 100.0

314 0 5 3 3 0 100.0 100.0 100.0

149 0 0 0 0 0 100.0 100.0 0.0

230 0 0 0 0 0 100.0 100.0 0.0

19 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

1 0 0 0 0 0 100.0 100.0 0.0

1 0 0 0 0 0 100.0 100.0 0.0

11 12 0 0 0 0 63.6 63.6 0.0

1 0 0 0 0 0 100.0 100.0 0.0

0 0 0 0 0 0 0.0 0.0 0.0

1 0 0 0 0 0 100.0 100.0 0.0

10 12 0 0 0 0 62.5 62.5 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

191 21 0 1 1 0 91.1 91.1 100.0

8 6 0 1 1 0 62.5 60.0 100.0

0 2 0 7 7 0 50.0 33.3 100.0

8 4 0 0 0 0 66.7 66.7 0.0

183 15 0 0 0 0 93.2 93.2 0.0

0 6 0 0 0 0 83.3 83.3 0.0

0 6 0 0 0 0 25.0 25.0 0.0

0 6 0 0 0 0 0.0 0.0 0.0

0 0 0 0 0 0 100.0 100.0 0.0

0 0 0 0 0 0 100.0 100.0 0.0

NUMBER OF BANKS AND BRANCHES 149

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1 9 7 5 -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

1 N ondeposit tru s t companies are excluded in com p u tin g these percentages.

in c lu d e s 14 noninsured branches o f insured banks: 12 in th e Pacific Islands and 2 in the Canal Zone. 

C a lifo r n ia : 1 branch operated b y a State nonm em ber bank in Puerto Rico.

Massachusetts: 1 branch operated b y a noninsured bank in New Y o rk .

New Y o rk : 19 branches operated b y 3 State nonm em ber banks in Puerto Rico.

Oregon: 1 branch operated by a national bank in C alifornia.

Pennsylvania: 2 branches operated by a noninsured bank in N ew Y o rk and a national bank in New Jersey. 

W ashington: 3 branches operated b y a national bank in C alifornia.

4 U nited States Possessions: A m erican Samoa, Guam, and M id w ay Islands.

T ru st T e rrito rie s : C aroline Islands, Marina Islands, and Marshall Islands.

5 Pacific Islands: 31 branches:

A m erican Samoa: 3 insured branches operated by a State nonm em ber bank in Hawaii and a national bank 

in New Y o rk .

Guam: 16 insured branches operated by 2 State nonm em ber banks in H awaii, 2 State nonm em ber banks 

and 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: 4 noninsured branches operated by 1 national bank and 1 nonm em ber 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 Rico: 23 insured branches operated b y 2 national banks in New Y o rk .

8 V irgin Islands: 20 insured branches operated by 2 national banks in New Y o rk, a national bank in 

C alifornia, and a national bank in Pennsylvania.

in c lu d e s noninsured nondeposit tru st companies th a t are members o f Federal Reserve System .

150 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 104. NUMBER AND DEPOSITS OF A L L COMMERCIAL AND M U TUA L SAVINGS BANKS

(STATES AND OTHER AREAS), DECEMBER 31, 1975

BANKS GROUPED BY CLASS AND DEPOSIT SIZE

Deposit size 

(in dollars)

A ll

banks

Insured com m ercial banks N oninsured 

banks 

and tru s t 

companies

M utual savings banks

Total

Members F.R . System N onmembers 

F.R. System

Insured

Noninsured

National State

N um ber o f banks

Less than 1 m illio n ......................... 194 58 11 1 46 136 0 0

1 to 2 m illio n ...................................... 288 265 48 10 207 23 0 0

2 to 5 m il l io n ................................... 2,025 1,987 306 93 1,588 36 0 2

5 to 10 m il l io n ................................. 3,166 3,141 692 176 2,273 14 7 4

10 to 25 m il l io n ................................. 4,883 4,826 1.655 357 2,814 15 23 19

25 to 50 m il l io n ............................... 2,287 2,179 968 172 1,039 11 61 36

50 to 100 m il l io n ............................ 1,166 1,036 534 106 396 10 75 45

100 to 500 m il l io n .......................... 873 705 406 90 209 23 105 40

500 m illio n to 1 b illio n .................. 138 102 64 19 19 3 32 1

1 b illio n or m o re ............................... 113 85 60 22 3 2 26 0

T otal ...................................... 15,133 14,384 4,744 1,046 8,594 273 329 147

(In thousands o f dollars)

A m o u n t o f deposits

Less than 1 m illio n .......................... 70,435 42,346 9,236 959 32,151 28,089 0 0

1 to 2 m il l io n ................................... 4 5 3 ,5 5 8 421,904 83,729 15,145 323,030 31,654 0 0

2 to 5 m il l io n ................................... 7,357,609 7,215,354 1,148,572 340,308 5,726,474 134,513 0 7,742

5 to 10 m il l io n ................................. 2 3,296,016 23,108,312 5,229,323 1,275,038 16,603,951 100,957 54,509 32,238

10 to 25 m il l io n ............................... 79,320,720 78,314,119 27,701,809 5,872,379 44,739,931 255,596 417,079 333,926

25 to 50 m il l io n ............................... 7 9,434,293 75,382,879 33,897,321 6,013,804 35,471,754 457,493 2,280,735 1,313,186

50 to 100 m il l io n ............................ 80,092,224 70,902,582 36,879,696 7,322,750 26,700,136 833,427 5,236,293 3,119,922

100 to 500 m il l io n ......................... 177,774,129 142,221,385 84,140,299 19,786,347 38,294,739 4,786,457 23,933,510 6,832,777

500 m illio n to 1 b illio n .................. 99 ,3 3 9 ,9 5 9 74,659,776 46,039,587 13,539,386 15,080,803 2,123,541 21,739,214 817,428

1 b illio n or m o re ............................... 35 6 ,3 2 6 ,3 0 5 308,480,011 215,178,451 89,243,133 4,058,427 3 ,381,527 44,464,767 0

T o ta l ...................................... 90 3 ,4 6 5 ,2 4 8 780,748,668 450,308,023 143,409,249 187,031,396 12,133,254 98,126,107 12,457,219

NUMBER OF BANKS AND BRANCHES

Digitized for FRASER 

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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),

DECEM BER 31, 1975

BANKS GROUPED BY DEPOSIT SIZE AND STATE

(Amounts in thousands of dollars)

Banks with deposits o f -

State

All

banks

Less

than

$1 million

$1 million

to

$2 million

$2 million

to

$5 million

$5 million

to

$10 million

$10 million

to

$25 million

$25 million

to

$50 million

$50 million

to

$100 million

$100 million

to

$500 million

$500 million

to

$1 billion

$1 billion

or

more

Total United States2

B a n k s............................. 14,657 194 288 2,023 3,155 4,841 2,190 1,046 728 105 87

Total deposits................. 789,831,015 68,052 444,297 7,311,850 23,181,001 78,302,278 75,593,056 71,257,010 145,821,091 75,990,842 311,861,538

States

Alabama

B a n k s............................. 299 0 4 26 72 133 39 10 13 2 0

D eposits ......................... 9,164,081 0 6,874 94,355 532,599 2,064,217 1,281,499 666,146 2,948,969 1,569,422 0

Alaska

B a n k s............................. 11 1 1 0 0 0 3 1 5 0 0

D e p o sits......................... 1,250,032 176 1,698 0 0 0 105,939 55,782 1,086,437 0 0

Arizona

B a n k s ................. ........... 23 8 0 3 2 2 1 1 3 1 2

D e po sits ......................... 6,225,871 0 0 11,176 13,539 28,281 45,389 90,889 626,119 909,446 4,501,032

Arkansas

B a n k s............................. 262 6 5 25 69 94 41 13 9 0 0

D e posits......................... 6,018,937 2,220 8,262 95,486 517,700 1,568,704 1,410,195 904,785 1,511,585 0 0

California

B a n k s............................. 216 17 1 14 31 51 40 22 29 2 9

D e posits......................... 85,313,493 902 1,358 49,697 229,418 861,355 1,355,833 1,446,226 5,386,122 1,213,302 74,769,280

Colorado

B a n k s ............................. 352 41 31 53 72 92 35 20 6 2 0

D e posits......................... 7,548,362 19,651 45,185 181,864 532,595 1,426,808 1,205,223 1,362,254 1,254,701 1,520,081 0

Connecticut

B a n k s............................. 72 0 0 6 12 22 15 6 8 1 2

D e posits......................... 7,394,921 0 0 19,402 97,649 338,796 513,349 415,633 2,366,109 679,344 2,964,639

Delaware

B a n k s ............................. 18 1 0 1 4 6 1 1 3 1 0

D e posits......................... 1,955,536 0 0 3,315 27,687 77,137 38,478 59,164 1,155,805 593,950 0

FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
District of Columbia

B a n k s............................. 16 1 0 0 1

D e po sits......................... 3,672,571 953 0 0 5,538

Florida

B a n k s ............................ 747 5 8 78 125

D e p o sits .................... 24,908,515 1,346 12,105 280,089 916,402

Georgia

B a n k s............................. 443 6 13 69 122

D e po sits......................... 12,358,060 3,700 19,709 253,842 904,561

Hawaii

B a n k s............................. 11 3 0 0 0

D e po sits......................... 2,599,156 0 0 0 0

Idaho

B a n k s............................. 24 0 0 2 7

D e p o sits ....... ................. 2,625,581 0 0 7,230 52,082

Illinois

B a n k s............................. 1,236 21 15 152 268

De p osits......................... 60,589,784 7,016 22,903 553,712 1,984,842

Indiana

Banks ............................. 407 3 4 19 60

De p osits......................... 17,909,687 86 7,354 77,082 455,669

Iowa

Banks ............................. 661 3 3 94 214

D e posits......................... 11,817,108 1,287 4,570 364,618 1,535,518

Kansas

B a n k s ............................. 616 4 32 170 160

D e posits......................... 8,792,183 2,721 49,825 593,471 1,159,203

Kentucky

B a n k s............................. 342 4 5 46 65

D e posits......................... 9,799,229 3,003 9,228 171,943 479,461

Louisiana

B a n k s ............................ 254 1 2 17 35

D e p o sits......................... 1 1,938,616 761 3,654 59,800 264,724

Maine

B a n k s............................. 45 0 0 2 5

D e po sits......................... 1,978,571 0 0 6,729 34,125

Maryland

Banks ............................ 115 0 1 11 23

D e po sits......................... 8,734,945 0 1,988 40,345 164,446

Massachusetts

B a n k s ............................ 150 1 0 5 23

D e po sits......................... 15,086,362 709 0 16,993 183,236

2 5 2 3 1 1

32,260 182,443 151,735 1,222,999 895,912 1,180,731

234 158 102 36 0 1

3,730,685 5,439,219 6,888,361 6,299,302 0 1,341,006

159 43 20 7 2 2

2,589,146 1,373,589 1,413,362 1,275,295 1,357,053 3,167,803

1 0 0 5 2 0

21,177 0 0 789,933 1,788,046 0

6 3 2 2 2 0

111,524 95,369 166,603 529,761 1,663,012 0

375 218 120 59 3 5

5,920,689 7,592,581 8,055,529 9,687,655 1,932,638 24,832,219

158 85 47 28 1 2

2,675,665 2,954,842 3,203,159 5,063,087 706,330 2,766,413

243 67 26 11 0 0

3,903,625 2,165,126 1,748,598 2,093,766 0 0

165 68 9 8 0 0

2,550,285 2,288,225 629,486 1,518,967 0 0

142 47 22 9 2 0

2,287,743 1,605,814 1,531,876 2,021,546 1,688,615 0

103 54 16 23 2 1

1,736,482 1,865,451 1,025,718 4,714,660 1,258,534 1,008,832

21 8 3 6 0 0

346,716 294,622 192,091 1,104,288 0 0

33 23 15 4 4 1

560,484 756,902 967,355 1,000,702 3,439,047 1,803,676

46 27 24 20 0 4

727,800 1,016,078 1,789,909 4,184,290 0 7,167,347

NUMBER OF BANKS AND BRANCHES 153

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),

DECEMBER 31, 1975-CONTINUED

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

M ichigan

Banks ...................................... 351 2 3 17 49 120 72 43 35 6 4

D e p o s its ................................. 29,451,735 877 4,158 66,775 389,029 1,959,607 2,457,407 2,890,665 6,224,208 4 ,379,575 11,079,434

M innesota

Banks ...................................... 747 1 13 173 226 227 68 28 8 0 3

D e p o s its ................................. 14,744,323 435 21,361 651,852 1,602,336 3,525,988 2,294,594 1,789,939 1,269,274 0 3,588,544

Mississippi

12 7 0 Banks ...................................... 185 0 5 23 36 73 27 2

D e p o s its ................................. 5,653,988 0 8,187 86,434 273,530 1,162,768 897,739 734,910 1,144,235 1,346,185 0

M issouri

B a n k s ...................................... 706 8 8 149 168 236 83 35 15 2 2

D e p o s its ................................. 17,262,775 2,819 11,711 510,378 1,240,113 3,772,919 2,873,991 2,430,431 2,752,642 1,047,333 2,620,438

M ontana

0 0 B a n k s ...................................... 156 2 2 28 41 53 17 9 4

D e p o s its ................................. 2,910,524 0 2,700 109,193 302,285 823,755 578,919 586,116 507,556 0 0

Nebraska

B a n k s ...................................... 453 9 36 132 115 121 25 10 5 0 0

D e p o s its ................................. 6,250,829 3,141 55,350 442,606 812,744 1,825,310 914,682 641,114 1,555,882 0 0

Nevada

Banks ...................................... 8 0 0 0 0 1 0 2 4 1 0

D e p o s its ................................. 1,884,940 0 0 0 0 13,028 0 132,851 901,342 837,719 0

New Ham pshire

0 0 Banks ...................................... 79 1 1 14 14 31 12 3 3

D e p o s its ................................. 1,657,753 0 1,415 55,375 106,562 511,789 420,925 197,488 364,199 0 0

New Jersey

B a n k s ...................................... 209 1 0 4 18 49 52 37 38 9 1

1,069,607 D e p o s its ................................. 21,784,457 676 0 14,120 141,096 871,469 1,749,577 2,565,454 9,232,727 6,139,731

New M exico

0 0 B a n k s ...................................... 81 1 0 5 9 38 16 9 3

D e p o s its ................................. 2,986,616 0 0 18,811 74,306 655,619 583,436 637,403 1,017,041 0 0

154 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
N ew Y o rk

Banks ...................................... 305 5 2 17 30

D e p o s its ................................. 135,127,015 1,123 3,046 57,753 226,880

N o rth C arolina

Banks ...................................... 94 0 0 7 20

D e p o s its ................................. 12,761,030 0 0 23,259 158,796

N o rth Dakota

B a n k s ...................................... 171 0 2 23 59

D e p o s its ................................. 2,935,227 0 2,542 87,381 434,427

Ohio

B a n k s ...................................... 496 0 3 35 79

D e p o s its ................................. 3 1,145,081 0 5,419 137,807 585,044

Oklahom a

B a n k s ...................................... 467 3 16 111 111

D e p o s its ................................. 10,221,200 1,928 25,524 400,408 794,375

Oregon

Banks ...................................... 47 0 1 3 11

D e p o s its ................................. 6,142,829 0 1,052 10,923 78,115

Pennsylvania

Banks ...................................... 398 4 0 15 53

D e p o s its ................................. 4 4 ,506,250 686 0 55,516 389,837

Rhode Island

B a n k s ...................................... 17 2 0 1 4

D e p o s its ................................. 3,313,363 926 0 3,361 29,482

South Carolina

Banks ...................................... 90 0 1 14 25

D e p o s its ................................. 4,123,916 0 1,985 47,674 181,668

South D akota

Banks ...................................... 158 0 1 38 61

D e p o s its ................................. 2,913,576 0 1,818 142,607 418,010

Tennessee

B a n k s ...................................... 344 2 5 46 73

D e p o s its ................................. 13,097,841 322 7,751 159,880 549,695

Texas

B a n k s ...................................... 1,342 7 39 200 288

D e p o s its ................................. 4 7 ,297,534 4,203 58,910 709,783 2,120,122

Utah

B a n k s ...................................... 64 5 4 9 15

D e p o s its ................................. 3 ,372,847 2,217 6,388 29,107 114,157

V e rm o n t

B a n k s ...................................... 32 1 2 0 5

D e p o s its ................................. 1,353,412 0 3,701 0 38,891

65 52 44 62 9 19

1,115,135 1,810,827 3 ,177,207 13,555,130 5,491,491 109,688,423

27 15 9 11 2 3

450,592 516,119 607,937 2,379,202 1,986,833 6,638,292

61 17 8 1 0 0

903,212 599,554 596,391 311,720 0 0

181 92 58 34 10 4

2,975,976 3,220,015 3,962,730 6,337,339 6,926,901 6,993,850

145 54 17 6 4 0

2 ,302,556 1,896,804 1,059,693 993,876 2,746,036 0

16 7 3 4 0 2

288,096 247,183 230,039 819,152 0 4,468,269

135 83 46 46 8 8

2,331,689 2,963,080 3,090,948 9,688,403 6,062,143 19,923,948

3 1 2 1 2 1

46,348 41,314 179,791 114,410 1,506,179 1,391,552

27 15 1 5 2 0

417,451 549,188 61,728 1,557,134 1,307,088 0

35 16 3 4 0 0

527,993 605,099 247,591 970,458 0 0

125 57 21 10 5 0

2,097,991 2,083,752 1,361,965 2,457,436 4,379,049 0

457 208 73 60 5 5

7,493,259 7,199,563 4,954,871 11,637,893 3,419,862 9,699,068

18 5 1 5 2 0

281,715 185,051 75,931 1,155,735 1,522,546 0

14 3 3 4 0 0

245,163 109,658 200,581 755,418 0 0

NUMBER OF BANKS AND BRANCHES 155

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),

DECEM BER 31, 1 9 7 5 -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

B a n k s ...................................... 291 3 4 34 48 100 55 20 23 2 2

D e p o s its ................................. 13,720,895 1,361 5,734 113,836 337,014 1,706,785 1,901,855 1,396,566 4,440,389 1,316,578 2,500,777

Washington

B a n k s ...................................... 98 5 2 17 20 27 9 7 6 3 2

D e p o s its ................................. 9,860,869 1,997 2,814 61,560 155,793 430,030 322,644 442,241 1,078,230 2,105,085 5,260,475

West Virginia

39 17 0 Banks ...................................... 219 1 2 20 39 94 7 0

D e p o s its ................................. 5,505,941 810 2,869 76,362 295,902 1,520,013 1,364,509 1,209,419 1,036,057 0 0

Wisconsin

Banks ...................................... 628 5 8 84 148 244 90 35 12 1 1

1,435,883 D e p o s its ................................. 15,007,562 0 11,355 316,186 1,093,156 3,982,213 2,989,059 2,491,923 2,075,480 612,307

W yoming

B a n k s ...................................... 77 0 3 9 16 28 16 3 2 0 0

D e p o s its ................................. 1,633,588 0 3,794 32,760 115,276 470,029 525,615 178,066 308,048 0 0

Other areas

Guam

0 0 B a n k s ...................................... 1 0 0 0 0 0 1 0 0

D e p o s its ................................. 30,559 0 0 0 0 0 30,559 0 0 0 0

Puerto Rico

B a n k s ...................................... 15 0 0 1 1 1 1 4 5 2 0

D e p o s its ................................. 3 ,144,330 0 0 4,565 6,071 11,918 28,686 274,208 1,175,413 1,643,469 0

Virgin Islands

0 0 B a n k s ...................................... 8 0 0 1 3 1 1 1 1

D e p o s its ................................. 346,609 0 0 4,429 25,295 22,283 45,486 86,152 162,964 0 0

1 1ncludes nondeposit tru s t com panies: 8 in A rizona, 3 in Arkansas, 16 in C alifornia, 1 in Delaware, 3 in Florida, 3 in Hawaii, 7 in Illin o is, 1 in Indiana, 1 in Iowa, 4 in M issouri, 2 in M ontana, 5 in Nebraska, 1 in New Hampshire, 

1 in New M exico, 5 in New Y o rk , 4 in O klahom a, 2 in Pennsylvania, 1 in Tennessee, 1 in Utah, 1 in V erm ont, 1 in Virginia, 1 in W ashington, and 5 in W isconsin.

2 Excludes data fo r branches in U.S. te rrito rie s and tru s t te rrito rie s o f banks headquartered in the U nited States, and excludes data fo r 19 insured branches in New Y o rk of 3 insured nonm em ber banks in Puerto Rico and one 

insured branch in C alifornia o f an insured nonm em ber bank in Puerto Rico.

156 FEDERAL DEPOSIT INSURANCE CORPORATION

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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 

30,1975

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, 1975 

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, 1975, and December 31, 1975 

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, 1965, 1971-1975 

Table 110. Assets and liabilities of insured mutual savings banks in the United States (States and other 

areas), December call dates, 1965, 1971-1975 

Table 111 . Percentages of assets and liabilities of insured commercial banks operating throughout 1975 in 

the United States (States and other areas), December 31, 1975 

Banks grouped by amount o f deposits

Table 112 . Percentages of assets and liabilities of insured mutual savings banks operating throughout 1975 

in the United States (States and other areas), December 31, 1975 

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, 1975

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 b y in ­

sured com m ercial banks on either a cash or an accrual basis, depending upon 

the bank's m ethod o f bookkeeping. In 1969, insured com m ercial banks 

having resources o f $50 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 th e ir assets and liabilities on the basis o f 

accrual accounting. Where the results are n o t significantly d iffe re n t, p a rtic ­

ular accounts m ay be reported on a cash basis. Banks no t subject to fu ll 

accrual accounting are required to re p o rt the instalm ent loan fu n ctio n on an 

accrual basis, or else to s u 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 p o rt

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 e r m a jo rity-o w n e d dom estic subsidiaries (b u t n o 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; o r (beginning in December 1972) (c) any subsidiary whose " I n ­

come (loss) before incom e taxes and securities gains o r losses" amounts to 5 

percent or more o f the "In c o m e (Loss) before incom e taxes and securities

ASSETS AND LIA B ILIT IE S OF BANKS 157

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gains or losses” o f the parent bank. Beginning in 1972, investments in subsidiaries n o t consolidated in w hich the bank d ire c tly or in d ire ctly exercises 

effective c o n tro l are re ported on an e q u ity (rather than cost) basis w ith the 

investm ent and undivided p ro fits adjusted to include the parent's share o f 

the subsidiaries' net w o rth .

In the 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 not included 

in the co 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 by com m ercial banks were reported net o f 

valua tio n reserves; total loans were reported 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 secu 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 contract, the 

paym ents do n o t im m e dia tely reduce the unpaid balances o f the loan bu t are 

assigned or pledged to assure repaym ent a t m a tu rity .

The category "T ra d in g account secu ritie s" was added to the co n d itio n 

re port o f com m ercial banks in 1969 to ob tain this segregation fo r banks tha t 

regularly deal in securities w ith other banks or w ith the public. Banks 

occasionally h o ld ing securities purchased fo r possible resale report these 

under "In v e s tm e n t secu ritie s."

Assets and lia b ilitie s held in or ad m inistered by a savings, bond, insurance, real estate, foreign, o r any o th e r d e p a rtm e n t of 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 eposits o f individuals, partnerships, and corporatio n s " include tru s t funds deposited by a tru s t departm 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 United 

States, except private banks and A m erican branches o f foreign banks, exclude reciprocal interban k deposits. (Reciprocal interbank deposits arise 

when tw o banks m aintain deposit accounts w ith each other.)

Asset and lia b ility data fo r noninsured banks are tabulated fro m reports 

pertaining to the individual banks. In a few cases, these reports are no 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, 1975 

and December 31, 1975, are shown in the C orp ora tio n's semiannual pu blication 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 requirem 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 reportin 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 plifie d.

Several changes were made in the reporting 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 by residential p ro p ­

erties are detailed as to those secured by 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 co m p a ra b ility w ith the 1971-1975 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 of C ond ition on the 

basis o f accrual accounting. A ll banks, regardless 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 Liabilities— Commercial and Mutual Savings

Banks. On Decem ber 31, 1975, th e consolidated assets o f insured com m ercial banks totaled $1 ,095 .4 b illio n , com pared to dom estic assets o f $952.5 

b illio n (see table 107). The 140 insured com m ercial banks th a t reported 

foreign operations held consolidated assets o f $591.1 b illio n .

Sources of data

Insured banks: see p. 181; noninsured banks: State banking a u thorities; 

and reports fro m individual banks.

158 FEDERAL DEPOSIT INSURANCE C O R P O R A TIO N

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Table 106. ASSETS AND LIA B ILIT IE S OF A L L COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE 30, 1975 

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 

of F.R. 

System

Total

Banks

of

dep o sit1

Nondeposit

tru st

T otal National State companies2

T otal assets............................................................................................................ 939,419,996 921,372,891 720,018,018 540,230,305 179,787,713 201,354,873 18,047,105 17,628,525 418,580

Cash, balances w ith o th e r banks, and cash item s in process

o f c o lle c tio n -to ta l............................................................................

C urrency and c o i n .................................................................................

Reserve w ith Federal Reserve banks (m em ber b a n k s )...............

Demand balances w ith banks in U.S. (except A m erican

branches of foreign b a n k s ) ..........................................................

O ther balances w ith banks in U nited S ta te s .................................

Balances w ith banks in foreign c o u n tr ie s ......................................

Cash item s in process o f c o lle c tio n ..................................................

129,525,378

10,170,329

26,894,695

34,418,886

5,821,311

2,580,203

49,639,954

125,887,317

10,140,016

26,894,695

31,879,954

5,360,291

2,085,616

49,526,745

107,322,310

7,561,564

26,894,695

19,727,038

3,645,009

1,774,512

47,719,492

75,858,028

5,812,607

20,823,928

13,234,616

3,194,711

1,058,693

31,733,473

31,464,282

1,748,957

6,070,767

6,492,422

450,298

715,819

15,986,019

18,565,007

2,578,452

0

12,152,916

1,715,282

311,104

1,807,253

3,638,061

30,313

0

2,538,932

4 61,020

494,587

113,209

3,570,213

29,761

0

2,475,594

459,414

494,566

110,878

67,848

552

0

63,338

1,606

21

2,331

S e c u ritie s -to ta l.............................................................................................

U.S. Treasury s e c u ritie s ......................................................................

O bligations o f other U.S. G overnm ent agencies and corps . . .

Obligations of States and p o litica l subdivisions .........................

O ther securities .....................................................................................

213,415,592

68,618,845

33,909,867

102,255,129

8,631,751

210,489,997

68,208,291

33,516,064

101,268,813

7,496,829

149,774,056

49,614,590

21,196,043

73,806,984

5,156,439

115,983,645

37,610,374

17,211,926

57,136,541

4,024,804

33,790,411

12,004,216

3,984,117

16,670,443

1,131,635

60,715,941

18,593,701

12,320,021

27,461,829

2,340,390

2,925,595

410,554

393,803

986,316

1,134,922

2,736,196

399,496

384,013

882,287

1,070,400

189,399

11,058

9,790

104,029

64,522

Investm ent se 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................................................................................

207,217,264

65,674,208

32,968,755

100,348,534

8,225,767

204,302,487

65,274,472

32,574,952

99,362,218

7,090,845

143,637,801

46,705,111

20,262,271

71,914,116

4,756,303

111,734,963

35,699,875

16,467,841

55,837,102

3,730,145

31,902,838

11,005236

3,794,430

16,077,014

1,026,158

60,664,686

18,569,361

12,312,681

27,448,102

2,334,542

2,914,777

399,736

393,803

986,316

1,134,922

2,725,386

388,686

384,013

882,287

1,070,400

189,391

11,050

9,790

104,029

64,522

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

6,198,328

2,944,637

941,112

1,906,595

405,984

6,187,510

2,933,819

941,112

1,906,595

405,984

6,136,255

2,909,479

933,772

1,892,868

400,136

4,248,682

1,910,499

744,085

1,299,439

294,659

1,887,573

998,980

189,687

593,429

105,477

51,255

24,340

7,340

13,727

5,848

10,818

10,818

0

0

0

10,810

10,810

O

0

0

8

8

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 b a n k s .....................................................

W ith brokers and dealers in s e cu ritie s.............................................

W ith o th e rs...............................................................................................

38,895,786

34,117,588

3,053,966

1,724,232

37,437,164

32,658,966

3,053,966

1,724,232

28,960,135

24,305,851

2,976,789

1,677,495

23,942,687

20,457,466

2,603,186

882,035

5,017,448

3,848,385

373,603

795,460

8,477,029

8,353,115

77,177

46,737

1.458.622

1.458.622 

0 

0

1.449.590

1.449.590 

0 

0

9.032

9.032 

0 

0

ASSETS AND LI ABI LITI ES OF BANKS 159

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Table 106. ASSETS AND L IA B ILIT IE S OF A LL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE 30, 1975— CONTINUED 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK 

(Amounts in thousands of dollars)

Insured banks Noninsured banks

Asset, lia b ility , or capital account item T otal

Total

Members of 

Federal Reserve System

N o t 

members 

of F.R. 

System

Total

Banks

of

deposit1

N ondeposit

trust

Total National State com panies2

O ther lo a n s - to ta l................................................................................................ 501,968,159 493,125,468 386,582,764 290,629,220 95,953,544 106,542,704 8,842,691 8,796,324 46,367

Real estate lo a n s -to ta l................................................................................ 133,010,666 132,724,532 95,378,614 74,652,004 20,726,610 37,345,918 286,134 271,939 14,195

Secured by farmland.............................................................................. 6,239,030 6,227,757 2,800,533 2^79,868 520,665 3,427,224 11,273 11,024 249

Secured by residential properties:

Secured by 1- to 4-family residential properties:

Insured by Federal Housing Administration.................... 5,906,300 5,889,036 4,932,156 4,121,645 810,511 956,880 17,264 17,138 126

Guaranteed by Veterans Administration......................... 3,217,178 3,196,081 2,716,557 2,289,877 426,680 479,524 21,097 20,689 408

Not insured or guaranteed by FHA or V A ....................... 66,227,843 66,072,522 47,039,400 37,634,014 9,405,386 19,033,122 155,321 148,347 6,974

Secured by multifamily (5 or more) residential properties:

Insured by Federal Housing Administration.................... 774,312 773,244 705,663 494,784 210,879 67,581 1,068 1,068 0

Not insured by FHA................................................................. 6,042,166 6,038,238 4,839,633 3,293,118 1,546,515 1,198,605 3,928 3,819 109

Secured by other properties............................................................... 44,603,837 44,527,654 32,344,672 24,538,698 7,805,974 12,182,982 76,183 69,854 6,329

Loans to dom estic com m ercial and foreign b a n k s ............................ 1 1,363,010 8,699,124 8,128,796 4,923,064 3,205,732 570,328 2,663,886 2,663,656 230

Loans to other financial in s titu tio n s ..................................................... 32,554,729 32,295,059 31,004,956 20,418,747 10,586,209 1,290,103 259,670 259,670 0

Loans to brokers and dealers in s e c u ritie s ........................................... 5,534,034 5,447,119 5,372,644 2,204,094 3,168,550 74,475 86,915 86,455 460

O ther loans fo r purchasing or carrying s e c u ritie s .............................. 3,837,588 3,819,674 3,177,962 2,491,812 686,150 641,712 17,914 15,674 2,240

Loans to farm ers (excluding loans on real estate).............................. 19,077,835 19,058,958 10,767,702 9,363,762 1,403,940 8,291,256 18,877 18,447 430

Com m ercial and industrial loans (incl. open m a rket p a p e r).......... 180,914,776 175,973,715 148,101,096 110,021,096 38,080,000 27,872,619 4,941,061 4 ,921,878 19,183

Loans to in d iv id u a ls -to ta l......................................................................... 102,647,803 102,264,136 73,002,041 58,425,013 14,577,028 2 9,262,095 383,667 378,989 4,678

Passenger automobile instalment loans........................................... 32,327,894 32,197,378 21,530,649 17,881,176 3,649,473 10,666,729 130,516 128,614 1,902

Credit cards and related plans:

Retail (charge account) credit card plans................................. 8288,062 8,287,949 7,402,504 6,009,235 1,393,269 885,445 113 113 0

Check credit and revolving credit plans................................... 2,611,019 2,610,428 2,161,847 1,334,779 827,068 448,581 591 591 0

Other retail consumer instalment loans:

Mobile homes, not including travel trailers............................ 8,810,077 8,803,902 6,340,282 5,410,997 929285 2,463,620 6,175 6,175 0

Other retail consumer goods........................................................ 6,629,825 6,591,561 4,324,815 3,666,953 657,862 2,266,746 38,264 37,914 350

Residential repair and modernization instalment loans............. 5,712,364 5,695,624 4,087,319 3,311,761 775,558 1,608,305 16,740 16,545 195

Other instalment loans for personal expenditures....................... 15,608,594 15,528,497 10,617,520 8,197,916 2,419,604 4,910,977 80,097 79233 864

Single-payment loans for personal expenditures......................... 22,659,968 22,548,797 16,537,105 12,612,196 3,924,909 6,011,692 111,171 109,804 1,367

A ll o th e r loans (in cluding ove rd ra fts)..................................................... 13,027,718 12,843,151 11,648,953 8,129,628 3,519,325 1,194,198 184,567 179,616 4,951

T otal loans and s e c u ritie s .................................................................... 754,279,537 741,052,629 565,316,955 430,555,552 134,761,403 175,735,674 13,226,908 12,982,110 244,798

Bank premises, fu rn itu re and fixtu re s, and other assets

representing bank premises ............................................................... 15,058,457 14,990,177 11,254,257 9,032,334 2,221,923 3,735,920 68,280 52,830 15,450

Real estate ow ned o ther than bank p re m is e s ...................................... 1,287,502 1,271,270 952,869 608,169 344,700 318,401 16,232 2,176 14,056

Investm ents in subsidiaries n o t c o n s o lid a te d ...................................... 1,821,945 1,798,105 1,777,410 1,375,606 401,804 20,695 23,840 22,211 1,629

Custom ers' lia b ilitie s on acceptances o u ts ta n d in g ............................ 9,476,544 9,229,767 8,996,812 5,738,010 3,258,802 232,955 246,777 246,777 0

Other assets..................................................................................................... 27,970,633 27,143,626 24,397,405 17,062,606 7,334,799 2,746,221 827,007 752,208 74,799

160 FEDERAL DEPOSIT INSURANCE CORPORATION

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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 of personal loans

Other deposits of individuals, partnerships, and corps....

C ertified and officers' checks, letters of credit, travelers' 

checks, etc...........................................................................................

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 p o litica l s u b d ivisio n s-d e m a n d ......................................

States and p o litica l s u b d iv is io n s -tim e ...........................................

D omestic interbank d e p o s its - to ta l.......................................................

Comm ercial banks in the United S ta te s -d e m a n d ......................

C om m ercial banks in the U nited S ta te s -tim e ...........................

M utual savings banks in 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 b a n k s -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 - to ta l.................................................................

Federal funds purchased and securities sold under

agreements to repurchase...............................................................

O ther lia b ilitie s fo r borrow ed m o n e y .............................................

Mortgage in debtedness.........................................................................

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 s e c u ritie s -to ta l..................................................

Reserve fo r bad debt losses on lo a n s................................................

O ther reserves on lo a n s .........................................................................

Reserves on se cu ritie s...........................................................................

939,419,996 921,372,891 720,018,018 540,230,305 179,787,713 201,354,873 18,047,105 17,628,525 418,580

620,319,030 614,779,060 461,518,686 357,226,226 104,292,460 153,260,374 5,539,970 5,526,761 13,209

233,318,825 232,252,896 177,891,151 135,537,491 42,353,660 54,361,745 1,065,929 1,062,117 3,812

374,724,331 371,047,099 274,111,890 215,136,075 58,975,815 96,935,209 3,677,232 3,667,885 9,347

152,750,742 152,394,853 109,210,222 86,193,775 23,016,447 43,184,631 355,889 355,889 0

341,215 334,869 259207 223,067 36,140 75,662 6,346 6,346 0

221,632,374 218,317,377 164,642,461 128,719,233 35,923,228 53,674,916 3,314,997 3,305,650 9,347

12,275,874 11,479,065 9,515,645 6,552,660 2,962,985 1,963,420 796,809 796,759 50

70,716,385 70,271,455 50,518,666 40,772,171 9,746,495 19,752,789 444,930 444,863 67

3,141,836 3,121,236 2,170,177 1,727,674 442,503 951,059 20,600 20,533 67

523,403 508,729 359,746 319,343 40,403 148,983 14,674 14,674 0

18,505,087 18,348,699 13,119,342 10,493,244 2,626,098 5,229,357 156,388 156,388 0

48,546,059 48,292,791 34,869,401 28,231,910 6,637,491 13,423,390 253,268 253,268 0

44,898,009 44,285,201 42,296,856 24,317,554 17,979,302 1,988,345 612,808 608,836 3,972

34,417,645 34,091,930 32,880,846 17,653,737 15,227,109 1,211,084 325,715 321,743 3,972

8,549,264 8,411,761 7,747,996 5,711,683 2,036,313 663,765 137,503 137,503 0

1,279,677 1,151,473 1,056,926 558,789 498,137 94,547 128,204 128,204 0

651,423 630,037 611,088 393,345 217,743 18,949 21,386 21,386 0

24,489,558 22,096,452 21,740,597 11,763,492 9,977,105 355,855 2,393,106 2,393,005 101

1,555,584 1,310,848 1,280,405 601,700 678,705 30,443 244,736 244,635 101

13,450,483 12,887,644 12,714,885 6,959,579 5,755,306 172,759 562,839 562,839 0

6,847,324 6,082,403 5,973,104 2,947,051 3,026,053 109,299 764,921 764,921 0

2,636,167 1,815,557 1,772,203 1,255,162 517,041 43,354 820,610 820,610 0

760,422,982 751,432,168 576,074,805 434,079,443 141,995,362 175,357,363 8,990,814 8,973,465 17,349

311,341,852 307,838,550 243,887,596 176,072,346 67,815,250 63,950,954 3,503,302 3,495,300 8,002

449,081,130 443,593,618 332,187,209 258,007,097 74,180,112 111,406,409 5,487,512 5,478,165 9,347

103,083,724 94,759,699 86,376,613 63,376,055 23,000,558 8,383,086 8,324,025 8,121,634 202,391

56,624,920 54,932,269 52,183,871 38,623,583 13,560,288 2,748,398 1,692,651 1,692,651 0

6,239,136 4,479,781 4,150,267 3,330,452 819,815 329,514 1,759,355 1,735,922 23,433

776,068 774,034 551,022 415,329 135,693 223,012 2,034 483 1,551

10,076,225 9,821,524 9,588,548 5,774,712 3,813,836 232,976 254,701 254,701 0

29,367,375 24,752,091 19,902,905 15,231,979 4,670,926 4 ,849,186 4,615,284 4,437,877 177,407

863,506,706 846,191,867 662,451,418 497,455,498 164,995,920 183,740,449 17,314,839 17,095,099 219,740

4,739 3,956 1,185 1,166 19 2,771 783 0 783

9,001,545 8,940,428 7,298,377 5,279,919 2,018,458 1,642,051 61,117 60,925 192

8,681,846 8,626,645 7,111,091 5,155,284 1,955,807 1,515,554 55,201 55,116 85

137,199 135,270 68,545 53,498 15,047 66,725 1,929 1,852 77

182,500 178,513 118,741 71,137 47,604 59,772 3,987 3,957 30

ASSETS AND LI ABI LITI ES OF BANKS

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 L L COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE 30, 1975— C O N TIN U E D 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK 

(Amounts in thousands of dollars)

Insured banks Noninsured banks

Asset, iia b ility , or capital account item Total

Total

Members of 

Federal Reserve System

N o t 

members 

o f F .R . 

System

Total

Banks

of

deposit1

N ondeposit

trust

Total National State com panies2

Capital a c c o u n ts - to ta l..................................................................................... 66,907,006 66,236,640 50,267,038 37,493,722 12,773,316 15,969,602 670,366 472,501 197,865

Capital notes and deb e n tu re s.................................................................... 4,452,507 4,318,261 3,467,019 2,264,433 1,202,586 851,242 134,246 134,151 95

E quity c a p it a l- t o t a l................................................................................... 62,454,499 61,918,379 46,800,019 35,229,289 1 1,570,730 15,118,360 536,120 338,350 197,770

Preferred stock........................................................................................ 50,449 42,495 23,556 12,926 10,630 18,939 7,954 7,580 374

Common stock........................................................................................ 15,243,604 15,143,526 11,188,761 8,504,393 2,684,368 3,954,765 100,078 52,023 48,055

Surplus....................................................................................................... 26,074,068 25,904,657 19,504,642 14,370,026 5,134,616 6,400,015 169,411 133J318 35,493

Undivided profits................................................................................... 20,114,572 19,914,313 15,444,770 11,843,845 3,600,925 4,469,543 200J59 92,752 107,507

Reserve for contingencies and other capital reserves.................. 971,806 913,388 638J90 498,099 140,191 275,098 58,418 52,077 6,341

PER C EN TAG ES

O f to ta l assets:

Cash and balances w ith other b a n ks....................................................... 13.8% 13.7% 14.9% 14.0% 17.5% 9.2% 20.2% 20.3% 16.2%

U.S. Treasury securities and obligations of other

U.S. G overnm ent agencies and co rp o ra tio n s ................................. 10.5 10.6 9.3 9.7 8.2 15.3 4.4 4.4 5.0

O ther s e c u ritie s ............................................................................................. 12.2 12.2 11.5 11.8 10.6 14.8 11.8 11.1 40.3

Loans (including Federal funds sold and)securities

purchased under agreements to r e s e ll) ........................................... 57.6 57.6 57.7 58.2 56.2 57.1 57.1 58.1 13.2

O ther assets.................................................................................................... 5.9 5.9 6.6 6.3 7.5 3.5 6.6 6.1 25.3

Total capital accounts3 .............................................................................. 7.2 7.2 7.0 7.0 7.1 7.9 13.3 8.4 47.3

Of to ta l assets other than cash and U.S. Treasury securities:

15.94 10.04 58.3 Total capital accounts3................................................................................ 9.1 9.1 8.9 8.8 9.3 9.7

N um ber of banks ............................................................................................... 14,597 14,332 5,796 4,732 1,064 8,536 265 191 74

11ncludes asset and lia b ility figures fo r branches o f foreign banks (tabulated as banks) licensed to do a deposit business. Capital is n o t allocated to these branches by the parent banks.

2A m ounts shown as deposits are special accounts and uninvested tru st funds, w ith the latter classified as demand deposits o f individuals, partnerships, and corporations.

3 Only asset and lia b ility data are included fo r branches located in "o th e r areas” of banks headquartered in one of the 50 States; because no capital is allocated to these branches, they are excluded from the com putation of 

ratios of 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 total columns.

Note: Further in fo rm a tio n on the reports of assets and lia b ilitie s o f banks may be found on pp. 157-158.

FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 107. ASSETS AND LIA B ILIT IE S OF A LL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEM BER 31, 1975 

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 ot 

members 

of F.R. 

System

T otal

Banks

o f

d eposit1

Nondeposit

tru st

T otal National State companies2

T otal assets............................................................................................................ 974,710,587 952,451,011 738,248,106 557,753,036 180,495,070 214,202,905 22,259,576 21,850,105 409,471

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

C urrency and c o i n ................................................................................

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 S ta te s ................................

Balances w ith banks in foreign c o u n tr ie s .....................................

Cash item s in process o f c o llectio n ...............................................

134,513,617

12,373,608

26,779,975

34,975,056

9,071,095

3,888,672

47,425,211

129,024,072

12,355,374

26,779,975

32,168,464

7,566,509

2,820,929

47,332,821

108,632,602

9,280,448

26,779,975

19,393,569

5,193,028

2,380,531

45,605,051

78,181,403

7,155,659

20,908,068

12,957,306

4,535,033

1,289,681

31,335,656

30,451,199

2,124,789

5,871,907

6,436,263

657,995

1,090,850

14,269,395

20,391,470

3,074,926

0

12,774,895

2,373,481

440,398

1,727,770

5,489,545

18,234

0

2,806,592

1,504,586

1,067,743

92,390

5,455,607

18,101

0

2 ,775,384

1,503,964

1,067,712

90,446

33,938

133

0

31,208

622

31

1,944

S e c u ritie s -to ta l.............................................................................................

U.S. Treasury s e c u ritie s ......................................................................

O bligations o f other U.S. G overnm ent agencies and corps . . .

O bligations o f States and p o litica l subdivisions .........................

O ther securities .....................................................................................

230,796,642

84,535,194

34,479,642

102,706,000

9,075,806

227,847,169

83,986,977

34,010,116

101,943,925

7,906,151

162,205,685

61,523,861

21,188,499

74,083,273

5,410,052

125,408,604

46,804,244

17,248,309

57,164,140

4,191,911

36,797,081

14,719,617

3 ,940,190

16,919,133

1,218,141

65,641,484

22,463,116

12,821,617

27,860,652

2,496,099

2,949,473

548,217

4 69,526

762,075

1,169,655

2,820,016

526,131

456,792

714,467

1,122,626

129,457

22,086

12,734

47,608

47,029

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 of States and political subdivisions....................

Other securities................................................................................

225,458,721

81,553,289

33,768,194

101,563,552

8,573,686

222,515,186

81,011,010

33,298,668

100,801,477

7,404,031

157,023,926

58,665,936

20,490^52

72,953,037

4,914,701

121,889,802

44,810,555

16,789,934

56,362,996

3,926,317

35,134,124

13,855,381

3,700,318

16,590,041

988,384

65,491,260

22,345,074

12,808,416

27,848,440

2,489,330

2,943,535

542,279

469,526

762,075

1,169,655

2,814,086

520,201

456,792

714,467

1,122,626

129,449

22,078

12,734

47,608

47,029

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

5,337,921

2,981,905

711,448

1,142,448

502,120

5,331,983

2,975,967

711,448

1,142,448

502,120

5,181,759

2,857,925

698,247

1,130,236

495,351

3,518,802

1,993,689

458,375

801,144

265,594

1,662,957

864,236

239,872

329,092

229,757

150,224 

718,042

13,201

12,212

6,769

5.938

5.938

0

0

0

5.930

5.930

0

0

0

8

8

O

0

0

Federal funds sold and securities purchased under agreements

to r e s e ll- to ta l...................................................................................

W ith dom estic com m ercial b a n k s ....................................................

W ith brokers and dealers in se cu ritie s.............................................

W ith others .............................................................................................

39,272,229

34,115,300

3,701,754

1,455,175

37,345,238

32,188,309

3,701,754

1,455,175

29,129,553

24,083,152

3,646,174

1,400,227

23,296,017

19,163,447

3,149,005

983,565

5,833,536

4,919,705

497,169

416,662

8,215,685

8,105,157

55,580

54,948

1.926.991

1.926.991 

0 

0

1.878.776

1.878.776 

0 

0

48.215

48.215 

0 

0

ASSETS AND LI ABI LITI ES OF BANKS 163

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 107. ASSETS AND L IA B ILIT IE S OF A L L COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1 9 7 5 -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 ot 

members 

o f F.R. 

System

Total

Banks

o f

d eposit1

N ondeposit

tru st

Total N ational State com panies2

O ther lo a n s - t o t a l................................................................................................ 512,466,050 502,289,682 389,955,184 294,965,448 94,989,736 112,334,498 10,176,368 10,132,449 43,919

Real estate lo a n s - t o t a l.............................................................................. 136,457,994 136,186,930 97,049,864 76,111,488 20,938,376 39,137,066 271,064 258,915 12,149

Secured by farmland.............................................................................. 6,383,414 6,370,913 2,835,794 2,328,911 506,883 3,535,119 12,501 12,188 313

Secured by residential properties:

Secured by 1- to 4 - family residential properties:

Insured by Federal Housing Administration.................... 5,779,837 5,761,362 4,838,342 4,051,510 786,832 923,020 18,475 18,375 100

Guaranteed by Veterans Administration......................... 3,133,632 3,108,439 2,615,458 2,203,878 411,580 492,981 25,193 25,021 172

Not insured or guaranteed by FHA or V A ....................... 68,302,396 68,149,590 48,064,611 38,477,766 9,586,845 20,084,979 152,806 145,594 7,212

Secured by multifamily (5 or more) residential properties:

Insured by Federal Housing Administration.................... 514,540 513,947 457,423 273,764 183,659 56,524 593 593 0

Not insured by F H A ............................................................... 5,405,954 5,401,104 4,156,010 2,620,299 1,535,711 1,245,094 4,850 4,742 108

Secured by other properties............................................................... 46,938,221 46,881,575 34,082,226 26,155,360 7,926,866 12,799,349 56,646 52,402 4,244

Loans to dom estic com m ercial and foreign b a n k s ............................ 12,780,896 9,556,714 8,688,537 5,309,640 3,378,897 868,177 3,224,182 3,224,182 0

Loans to o th e r financial in s titu tio n s ..................................................... 29,748,146 29,409,991 28,136,454 18,597,940 9,538,514 1,273,537 338,155 338,155 0

Loans to brokers and dealers in s e c u ritie s ........................................... 7,175,025 7,055,262 6,964,173 3,305,845 3,658,328 91,089 119,763 119,258 505

O ther loans fo r purchasing or carrying s e c u ritie s .............................. 3,918,181 3,824,380 3,193,037 2,551,076 641,961 631,343 93,801 91,006 2,795

Loans to farm ers (excluding loans on real estate) ............................ 20,164,527 20,135,056 11,244,192 9,792,955 1,451,237 8,890,864 29,471 28,759 712

Com m ercial and industrial loans (incl. open m a rke t p a p e r).......... 181,030,528 175,922,939 146,867,431 110,033,586 36,833,845 29,055,508 5,107,589 5,086,066 21,523

Loans to in d iv id u a ls -to ta l......................................................................... 107,617,366 106,819,480 75,787,575 60,903,529 14,884,046 31,031,905 797,886 792,975 4,911

Passenger automobile instalment loans........................................... 33,989,669 33,455,998 22,105,578 18,353,408 3,752,170 11,350,420 533,671 531,768 1,903

Credit cards and related plans:

Retail (charge account) credit card plans.............................. 9,552,062 9,551^55 8,520,475 6,967,052 1,553,423 1,030,780 807 807 0

Check credit and revolving credit plans................................... 2,827,834 2,827,207 2,339,956 1,474,614 865,342 487,251 627 627 0

Other retail consumer instalment loans:

Mobile homes, not including travel trailers............................ 8,723,153 8,720,369 6,276,205 5,367,731 908,474 2,444,164 2,784 2,784 0

Other retail consumer goods....................................................... 6,764,778 6,720,411 4,342,782 3,663,038 679,744 2,377,629 44,367 44,017 350

Residential repair and modernization instalment loans............. 5,970,570 5,955,100 4,202,738 3,404,680 798,058 1,752,362 15,470 15,275 195

Other instalment loans for personal expenditures....................... 16,534,966 16,455,919 11^75,456 8,925,331 2,350,125 5,180,463 79,047 77,903 1,144

Single-payment loans for personal expenditures......................... 23,254,334 23,133,221 16,724,385 12,747,675 3,976,710 6,408,836 121,113 119,794 1,319

A ll o ther loans (in clu d in g o ve rd ra fts)..................................................... 13,573,387 13,378,930 12,023,921 8,359,389 3,664,532 1,355,009 194,457 193,133 1,324

T otal loans and s e c u ritie s ............................................................. 782,534,921 767,482,089 581,290,422 443,670,069 137,620,353 186,191,667 15,052,832 14,831,241 221,591

164 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 ther assets

representing bank p re m is e s ..........................................................

Real estate owned other than bank p re m is e s .....................................

Investm ents in subsidiaries n o t c o n s o lid a te d ......................................

Custom ers' lia bilitie s on acceptances o u ts ta n d in g ............................

O ther assets....................................................................................................

T otal 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 tion 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......................................................................

U nited States G o ve rn m e n t-d e m a n d ................................................

U nited States G o v e rn m e n t-tim e .....................................................

States and p o litica l s u b d ivisio n s-d e m a n d ......................................

States and p olitical s u b d iv is io n s -tim e ...........................................

Dom estic interbank d e p o s its - to ta l.......................................................

Com m ercial 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 governm ents, central b a n k s -d e m a n d ..............................

Foreign governm ents, central b a n k s - tim e ...................................

Banks in foreign countries— 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........................................................................................

Miscellaneous 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 liabilities fo r borrow ed m o n e y .............................................

Mortgage indebtedness.........................................................................

Acceptances o u ts ta n d in g ....................................................................

O ther liabilities .....................................................................................

Total lia b ilitie s ...........................................................................

M in o rity interest in consolidated subsidiaries......................................

15,675,411 15,598,230 11,607,346 9,339,846 2,267,500 3,990,884 77,181 61,253 15,928

1,926,745 1,908,880 1,498,926 1,035,809 463,117 409,954 17,865 3,615 14,250

2,017,593 1,992,754 1,969,982 1,528,541 441,441 22,772 24,839 22,449 2,390

8,970,175 8,687,996 8,427,539 5,006,629 3,420,910 260,457 282,179 282,179 0

29,072,125 27,756,990 24,821,289 18,990,739 5,830,550 2,935,701 1,315,135 1,193,761 121,374

974,710,587 952,451,011 738,248,106 557,753,036 180,495,070 214,202,905 22,259,576 21,850,105 409,471

652,931,404 645,305,033 481,402,390 372,851,693 108,550,697 163,902,643 7,626,371 7,608,875 17,496

247,919,255 246,710,621 188,206,603 143,435,057 44,771,546 58,504,018 1,208,634 1,204,274 4,360

393,366,714 387,848,833 284,635,349 223,495,060 61,140,289 103,213,484 5,517,881 5,504,774 13,107

161,150,232 160,716,975 114,410,189 90,574,034 23,836,155 46,306,786 433,257 433257 0

284,477 280,452 222,575 188,002 34,573 57,877 4,025 4,025 0

231,932,005 226,851,406 170,002,585 132,733,024 37,269,561 56,848,821 5,080,599 5,067,492 13,107

11,645,435 10,745,579 8,560,438 5,921,576 2,638,862 2,185,141 899,856 899,827 29

71,097,950 70,704,640 50,293,284 40,637,892 9,655,392 20,411,356 393,310 393,284 26

3,147,074 3,126,532 2,259,731 1,792,980 466,751 866,801 20,542 20,516 26

594,713 588,481 461,832 405,328 56,504 126,649 6,232 6,232 0

19,025,310 18,879,179 13,107,132 10,434,058 2,673,074 5,772,047 146,131 146,131 0

48,330,853 48,110,448 34,464,589 28,005,526 6,459,063 13,645,859 220,405 220,405 0

45,308,101 44,280,973 42,041,498 26,164,808 15,876,690 2,239,475 1,027,128 1,025,891 1,237

33,809,804 33,491,673 32,068,060 19,017,388 13,050,672 1,423,613 318,131 316,894 1,237

9,655,353 9,129,775 8,420,254 6,360,110 2,060,144 709,521 525,578 525,578 0

1,325,146 1,159,714 1,062,857 484,530 578,327 96,857 165,432 165,432 0

517,798 499,811 490,327 302,780 187,547 9,484 17,987 17,987 0

23,544,467 20,458,022 19,980,100 10,653,630 9,326,470 477,922 3,086,445 3,086,389 56

1,858,879 1,659,374 1,610,364 709,637 900,727 49,010 199,505 199,449 56

12,425,754 11,374,159 11,186,931 5,861,819 5,325,112 187,228 1,051,595 1,051,595 0

6,724,421 5,649,939 5,459,282 2,823,204 2,636,078 190,657 1,074,482 1,074,482 0

2,535,413 1,774,550 1,723,523 1,258,970 464,553 51,027 760,863 760,863 0

792,881,922 780,748,668 593,717,272 450,308,023 143,409,249 187,031,396 12,133,254 12,114,439 18,815

325,455,324 321,422,611 252,334,467 184,618,430 67,716,037 69,088,144 4,032,713 4,027,005 5,708

467,426,598 459,326,057 341,382,805 265,689,593 75,693,212 117,943,252 8,100,541 8,087,434 13,107

103,272,838 93,970,964 85,151,316 63,207,126 21,944,190 8,819,648 9,301,874 9,125,117 176,757

53,875,587 52,190,147 49,304,897 38,049,001 11,255,896 2,885,250 1,685,440 1,685,440 0

6,667,393 4,651,050 4,341,562 2,826,146 1,515,416 309,488 2,016,343 1,987,927 28,416

776,724 774,094 549,206 421,557 127,649 224,888 2,630 804 1,826

9,633,805 9,275,803 9,015,344 5,058,993 3,956,351 260,459 358,002 358,002 0

32,319,329 27,079,870 21,940,307 16,851,429 5,088,878 5,139,563 5,239,459 5,092,944 146,515

896,154,760 874,719,632 678,868,588 513,515,149 165,353,439 195,851,044 21,435,128 21,239,556 195,572

5,293 4,470 1,383 1,383 0 3,087 823 0 823

ASSETS AND LIABI LITIES OF BANKS 165

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 107. ASSETS AND LIA B ILIT IE S OF A LL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1 9 7 5 -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 

of F.R. 

System

Total

Banks

of

deposit1

N ondeposit

trust

Total N ational State com panies2

Reserves on loans and s e c u ritie s -to ta l................................................... 9,086,263 9,010,387 7,294,187 5,257,296 2,036,891 1,716,200 75,876 75,442 434

Reserve fo r bad debt losses on lo a n s ................................................ 8,722,359 8,654,714 7,078,732 5,107,451 1,971,281 1,575,982 67,645 67,309 336

O ther reserves on lo a n s......................................................................... 174,864 169,113 92,230 76,006 16,224 76,883 5,751 5,683 68

Reserves on securities ......................................................................... 189,040 186,560 123,225 73,839 49,386 63,335 2,480 2,450 30

Capital a c c o u n ts -to ta l .............................................................................. 69,464,271 68,716,522 52,083,948 38,979,208 13,104,740 16,632,574 747,749 535,107 212,642

Capital notes and d e b e n tu re s ............................................................ 4,578,135 4,407,892 3,494,058 2,291,322 1,202,736 913,834 170,243 170,147 96

Equity c a p ita l- to ta l.............................................................................. 64,886,136 64,308,630 48,589,890 36,687,886 1 1,902,004 15,718,740 577,506 364,960 212,546

Preferred stock................................................................................ 53,872 47,881 28,092 13,962 14,130 19,789 5,991 5,613 378

Common stock................................................................................ 15,678,547 15,565,026 11,499,499 8,809,330 2,690,169 4,065,527 113,521 64,097 49,424

Surplus ............................................................................................... 26,886,013 26,712,935 19,979,645 14,718,169 5^61,476 6,733,290 173,078 134,036 39,042

Undivided profits........................................................................... 21,381,203 21,182,330 16,566,197 12,781,762 3,784,435 4,616,133 198,873 88,830 110,043

Reserve for contingencies and other capital reserves.......... 886,501 800,458 516,457 364,663 151,794 284,001 86,043 72,384 13,659

PER C E N TA G E S

Of to ta l assets:

Cash and balances w ith other b a n ks....................................................... 13.8% 13.5% 14.7% 14.0% 16.9% 9.5% 24.7% 25.0% 8.3%

U.S. Treasury securities and obligations of other

U.S. G overnm ent agencies and c o rp o ra tio n s ................................. 11.8 12.0 10.7 11.0 9.7 16.4 4.5 4.5 8.5

O ther s e c u ritie s ............................................................................................. 11.8 11.9 11.2 11.4 10.7 14.2 8.7 8.4 23.1

Loans (in clu d in g federal funds sold and securities

purchased under agreements to resell)............................................. 56.6 56.7 56.8 57.1 55.9 56.3 54.4 55.0 22.5

O ther assets.................................................................................................... 5.9 5.9 6.5 6.4 6.9 3.6 7.7 7.2 37.6

Total capital accounts3................................................................................ 7.3 7.3 7.1 7.0 7.3 7.8 14.1 8.6 51.9

Of to ta l assets other than cash and U.S. Treasury securities:

Total capital accounts3 .............................................................................. 9.3 9.3 9.2 9.1 9.6 9.7 16.14 9 .94 60.2

Num ber of banks.................................................................................................. 14,657 14,384 5,790 4,744 1,046 8,594 273 195 78

1< 2- 3 - 4 See notes to table 106.

Note: F urther in fo rm a tio n on the report o f assets and lia b ilitie s o f banks may be found on pp. 157-158.

166 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 LL M UTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE 30, 1975, A N D DECEM BER 31, 1975 

BANKS GROUPED BY INSURANCE STATUS 

(Amounts in thousands of dollars)

Asset, lia b ility , or surplus account item

June 30, 1975 December 31, 1975

Total Insured N oninsured Total Insured Noninsured

Total assets.......................................................................................................................................................... 116,774,352 102,273,237 14,501,115 121,070,592 107,280,765 13,789,827

Cash, balances w ith banks, and c o lle ctio n ite m s - to ta l................................................................... 2,127,297 1,953,878 173,419 2,347,385 2,195,390 151,995

Currency and c o i n ............................................................................................................................... 265,848 220,752 45,096 360,664 308,887 51,777

Demand balances w ith banks in the U nited S ta te s .................................................................. 592,626 500,100 92,526 787,661 706,116 81,545

Other balances w ith banks in the U nited S ta te s ....................................................................... 1,132,441 1,116,382 16,059 1,095,534 1,091,274 4,260

Cash item s in process of c o lle c tio n ................................................................................................. 136,382 116,644 19,738 103,526 89,113 14,413

S e c u ritie s -to ta l........................................................................................................................................... 31,336,987 27,472,586 3,864,401 34,221,545 30,421,034 3,800,511

United States G overnm ent and agency securities— t o t a l ........................................................ 9,215,658 8,034,993 1,180,665 10,798,850 9,468,682 1,330,168

Securities maturing in 1 year or less...................................................................................... 1,051,030 805,466 245,564 1,599,108 1,312,116 286,992

Securities maturing in 1 to 5 years......................................................................................... 2,926,357 2,358,443 567,914 3,406,838 2,761242 645,596

Securities maturing in 5 to 10 years...................................................................................... 1,229,852 1,040,104 189,748 1,383,830 1,167,218 216,612

Securities maturing after 10 years............................................................................................ 4,008,419 3,830,980 177,439 4,409,074 4,228,106 180,968

Corporate b o n d s.................................................................................................................................... 13,771,152 12,490,307 1,280,845 14,685,540 13,503,561 1,181,979

State, co u n ty, and m unicipal o b lig a tio n s .................................................................................... 1,277,611 1,162,986 114,625 1,549,892 1,488,631 61,261

Other bonds, notes, and d e b e n tu re s .............................................................................................. 2,786,126 2,226,101 560,025 2,882,418 2,329,685 552,733

Corporate stock— t o t a l ....................................................................................................................... 4,286,440 3,558,199 728,241 4,304,845 3,630,475 674,370

Bank................................................................................................................................................... 526,189 350,638 175,551 528,884 374,851 154,033

Other................................................................................................................................................ 3,760,251 3,207,561 552,690 3,775,961 3255,624 520,337

Federal funds sold and securities purchased under agreements to re s e ll.................................. 1,730,266 1,412,056 318,210 1,107,953 897,063 210,890

O ther lo a n s -to ta l ...................................................................................................................................... 78,601,183 68,724,769 9,876,414 80,154,302 70,812,040 9,342,262

Real estate lo a n s - to ta l....................................................................................................................... 75,795,578 66,382,740 9,412,838 77,249,313 68,371,859 8,877,454

Construction loans....................................................................................................................... 882,834 744,954 137,880 930,601 824,494 106,107

Secured by farmland..................................................................................................................... 51,598 38J83 13,315 59,408 48,239 11,169

Secured by residential properties:

Secured by 7 - to 4 - family residential properties:

Insured by Federal Housing Administration........................................................... 12,823,316 11,861,140 962,176 12,424,873 11,587,451 837,422

Guaranteed by Veterans Administration.................................................................. 12,548,306 11,395,215 1,153,091 12,390,708 11,342,670 1,048,038

Not insured or guaranteed by FHA or V A .............................................................. 23,863,313 18,903,200 4,960,113 25,000,106 20,123,915 4,876,191

Secured by multi family (5 or more) residential properties:

Insured by Federal Housing Administration........................................................... 1,831,892 1,774,044 57,848 2,002,073 1,949,245 52,828

Not insured by FHA........................................................................................................ 10,996,681 10,325,049 671,632 11,292,965 10,693,613 599,352

Secured by other properties...................................................................................................... 12,797,638 11,340,855 1,456,783 13,148,579 11,802,232 1,346,347

Loans to dom estic com m ercial and foreign banks .................................................................. 28,198 26,743 1,455 26,747 25,275 1,472

Loans to other financial in stitu tio n s ............................................................................................ 48,240 48,220 20 32,835 32,714 121

Loans to brokers and dealers in securities ................................................................................. 3 3 0 0 0 0

O ther loans fo r purchasing or carrying s e c u ritie s ..................................................................... 1,836 1,761 75 1,990 1,480 510

Loans to farmers (excluding loans on real e s ta te )..................................................................... 1,336 1,336 0 1,460 1,456 4

Commercial and industrial loans ................................................................................................... 312,139 304,640 7,499 297,097 288,976 8,121

ASSETS AND LIABILITIES OF BANKS 167

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 108. ASSETS AND L IA B ILIT IE S OF A L L M UTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JU NE 30, 1975, A N D DECEMBER 31, 1 9 7 5 -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 5 December 31, 1975

Total Insured N oninsured Total Insured N oninsured

Loans to individuals fo r personal expenditures ........................................................................

A ll o th e r loans (in clu d in g o v e rd ra fts )............................................................................................

2,297,786

116,067

1,896,060

63,266

401,726

52,801

2,449,637

95,223

2,052,147

38,133

397,490

57,090

T otal loans and securities .................................................................................................... 111,668,436 97,609,411 14,059,025 115,483,800 102,130,137 13,353,663

Bank premises, fu rn itu re and fixtu re s, and other assets representing bank prem ises. . .

Real estate owned o ther than bank p re m is e s .............................................................................

Investm ents in subsidiaries n o t co n so lid a te d ................................................................................

O ther a s s e ts ............................................................................................................................................

1,031,479

355,538

98,645

1,492,957

9 05,030

3 09,395

9 4,795

1,400,728

126,449

46,143

3,850

92,229

1,087,813

464,851

106,965

1,579,778

963,664

418,233

94,253

1,479,088

124,149

46,618

12,712

100,690

T otal lia b ilitie s and surplus a c c o u n ts ........................................................................................................... 116,774,352 102,273,237 14,501,115 121,070,592 107,280,765 13,789,827

D e p o s its -to ta l...............................................................................................................................................

Savings and tim e d e p o s its -to ta l......................................................................................................

Savings deposits.............................................................................................................................

Deposits accumulated for payment of personal loans.......................................................

Fixed maturity and other time deposits................................................................................

Demand d e p o s its -to ta l........................................................................................................................

106,711,808

105,687,126

69,132,329

3,213

36,551,584

1,024,682

93,610,570

92,617,918 

60,454,140

384

32,163,394

992,652

13,101,238

13,069,208

8.678.189

2,829

4.388.190

32,030

110,583,326

109,553,709

70,307,268

2,654

39,243,787

1,029,617

98,126,107

97,133,340

62,050,661

430

35,082,249

992,767

12,457,219

12,420,369

8,256,607

2,224

4,161,538

36,850

M iscellaneous lia b ilitie s — t o t a l ................................................................................................................

S ecurities sold under agreements to re p u rc h a s e ........................................................................

O ther b o rro w in g s ..................................................................................................................................

O ther lia b ilitie s ....................................................................................................................................

1,896,313

75,048

370,703

1,450,562

1,643,349

75,048

3 61,585

1,206,716

252,964

0

9,118

243,846

2,066,326

108,715

4 81,778

1,475,833

1,815,359

108,715

465,279

1,241,365

250,967

0

16,499

234,468

T otal lia b ilitie s ........................................................................................................................ 108,608,121 95,253,919 13,354,202 112,649,652 99,941,466 12,708,186

M in o rity interest in consolidated subsidiaries .................................................................................. 0 0 0 70 70 0

Surplus a c c o u n ts - to ta l.............................................................................................................................

Capital notes and d e b e n tu re s ...........................................................................................................

Other surplus a c c o u n ts ........................................................................................................................

8,166,231

172,807

7,993,424

7,019,318

166,764

6,852,554

1,146,913

6,043

1,140,870

8,420,870

196,374

8,224,496

7,339,229

190,279

7,148,950

1,081,641

6,095

1,075,546

PER C EN TAG ES

Of to ta l assets:

Cash and balances w ith o ther banks ....................................................................................................

U.S. G overnm ent and agency se c u ritie s ...............................................................................................

Other s e c u ritie s ............................................................................................................................................

Loans (in cluding federal funds sold and securities purchased under

agreements to re s e ll).....................................................................................................................

Other assets...................................................................................................................................................

Total surplus a c c o u n ts ...............................................................................................................................

1.8%

7.9

18.9

68.8

2.6

7.0

1.9%

7.9 

19.0

68.6

2.6

6.9

1.2% 

8.1 

18.5

70.3

1.9

7.9

1.9%

8.9

19.3

67.1

2.7

7.0

2.0%

8.8

19.5

66.8

2.8

6.8

1.1%

9.6

17.9

69.3

2.1

7.8

Of to ta l assets other than cash and U.S. G overnm ent obligations:

T otal surplus a c c o u n ts ................................................................................................................................ 7.8 7.6 8.7 7.8 7.7 8.8

Num ber o f banks .............................................................................................................................................. 478 323 155 476 329 147

168 FEDERAL DEPOSIT INSURANCE CORPORATION

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, 1965, 1971-1975 

(Amounts in thousands of dollars)

Asset, lia b ility , or capital account item Dec. 31, 1965 Dec. 31, 19711 Dec. 31, 1972 Dec. 3 1 ,1 9 7 3 Dec. 31, 1974 Dec. 31, 1975

T o ta l asse ts................................................................................................................. 379,405,3842 639,903,322 737,699,385 832,658,280 912,529,261 952,451,011

Cash, balances w ith banks, and c o lle ction ite m s -to ta l .......................................................................

Currency and c o i n ......................................................................................................

Reserve w ith Federal Reserve banks (m em ber b a n k s ).........................................................

Demand balances w ith banks in the U.S. (except Am erican branches o f foreign banks) . . .

O ther balances w ith banks in the U.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 ............................................................................................

60,436,719

4,865,803

17,992,395

14,354,186

484,817

255,865

22,483,653

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

30,128,768

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

129,024,072

12,355,374

26,779,975

32,168,464

7,566,509

2,820,929

47,332,821

Investm ent s e c u ritie s -to ta l............................................................................................................................

U.S. Treasury s e c u ritie s ................................................................................................................

Securities o f o ther 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 s e c u ritie s .........................................................................................................

103,650,708

59,209,832

4,513,114

38,480,349

1,447,413

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

222,515,186

81,011,010

33,298,668

100,801,477

7,404,031

Trading account securities3 .......................................................................................................................... 5,307,564 5,128,096 8,655,329 7,983,831 5,331,983

Federal funds sold4 ............................................................................................................................... 2,064,215 19,643,272 25,634,862 34,379,920 38,937,288 37,345,238

O ther 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-family 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) properties:

Insured by Federal Housing Administration3 ....................................................

203,061,2012

49,393,933

2,888,012

7,592,405

2,637,439

21,929,584

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

118,401,203

74,796,848

24,850,695

4,523,889

1,463,857

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

459,755,788

118,787,181

5,420,190

6J)02,779

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

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

502,289,682

136,186,930

6,370,913

5,761,362

3,108,439

68,149,590

513,947

5,401,104

46,881,575

9,556,714

29,409,991

7,055,262

3,824,380

20,135,056

175,922,939

106,819,480

33,455,998

9,551,255

2,827,207

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 m ercial 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 plans................................................................

Check credit and revolving credit plans..........................................................................

14,346,493

2.095.012 

13,186,038

5,087,694

3,175,076

8.203.013 

71,235,183 

45,497,461 

17,139,214

(5 )

(5 )

ASSETS AND LI ABI LITI ES OF BANKS 169

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, 1965, 1971-1975-C O N TIN U E D 

(Amounts in thousands of dollars)

Asset, lia b ility , or capital account item Dec. 31, 1965 Dec. 31, 19 7 1 1 Dec. 31, 1972 Dec. 31, 1973 Dec. 31, 1974 Dec. 31, 1975

Other retail consumer instalment loans ....................................................................................... 4,176,950

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

4206240

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

8,720,369

6,720,411

5,955,100

16,455,919

23,133,221

13,378,930

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 )....................................................................................................

3,126,804

7,388,640

13,665,853

5,187,791

Total loans and securities................................................................................... 308,776,1242 517,036,246 598,297,791 682,365,800 739,219,055 767,482,089

Bank premises, fu rn itu re and fixtu re s, and other assets representing bank prem ises.............

Real estate owned other than bank p re m is e s .....................................................................................

Investm ents in subsidiaries not consolidated3 ...........................................................................

5,144,222 10,285,384

390,833

911,550

3,914,186

8,674,423

11,524,646

369,193

1,077,700

3,471,203

11,114,739

12,788,763

433,860

1,403,400

4,356,527

14,370,749

14,296,959

811,080

1,739,054

10,653,382

19,728,540

15,598,230

1,908,880

1,992,754

8,687,996

27,756,990

Custom ers' lia b ility on acceptances outstanding .............................................................................

O ther a s s e ts ...................................................................................................................................................

1,862,571

3,185,748

Total liabilities, reserves, and capital accounts ........................................................................ 379,405,384 639,903,322 737,699,385 832,658,280 912,529,261 952,451,011

Business and personal de posits-total.................................................................................

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

275,205,357

139,077,920

130,195,436

92,554,897

1,078,207

36,562,332

5,932,001

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

184,010,925

10,862,092

604,637,647

235,984,680

358,273,861

136,268,612

386,635

221,618,614

10,379,106

645,305,033

246,710,621

387,848,833

160,716,975

280,452

226,851,406

10,745,579

Government d e posits-total...............................................................................................

U nited States G o ve rn m e n t-d e m a n d ......................................................................................................

U nited States G o v e rn m e n t-tim e ...........................................................................................................

States and s u b d iv is io n s -d e m a n d ...........................................................................................................

States and s u b d iv is io n s -tim e ...................................................................................................................

32,216,843

5,523,816

281,330

14,241,724

12,169,973

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

70,704,640

3,126,532

588,481

18,879,179

48,110,448

Domestic interbank d e p o sits-to ta l...................................................................................

Com m ercial banks in the U nited S ta te s -d e m a n d .............................................................................

Com m 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 .............................................................................

17,311,718

15,779,062

510,159

860,378

162,119

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

44,280,973

33,491,673

9,129,775

1,159,714

499,811

Foreign government and bank d e p o sits-to ta l....................................................................

Foreign governments, 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 ............................................................................................................

6,778,763

892,867

4,086,126

1,529,097

270,673

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

20,458,022

1,659,374

11,374,159

5,649,939

1,774,550

Total de posits........................................................................................................

Demand...............................................................................................................................................

Time....................................................................................................................................................

331,512,681

183,836,865

147,675,816

539,184,062

262^78,862

276^05,200

616,907,567

296,391,091

320,516,476

681,619,425

309,106281

372,513,044

746,412,922

314,416,936

431,995,986

780,748,668

321,422,611

459,326,057

170 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Miscellaneous lia b ilitie s-to ta l..........................................................................................

Federal funds purchased (b o rro w e d )6 ...................................................................................................

O ther lia b ilitie s fo r borrow ed m o n e y ...................................................................................................

Mortgage indebtedness3 ............................................................................................................................

13,976,496

2,438,413

1,898,290

47,367,281

24,179,742

1,463,429

668,331

4,039,643

17,016,136

61,509,222

33,731,069

3,919,796

1,160,675

3,570,900

19,126,782

85,386,177

50,480,996

7,179,644

771,519

4 ,486,309

22,467,709

94,147,074

51,224,639

4 ,867,119

724,845

11,226,448

26,104,023

93,970,964

52,190,147

4,651,050

774,094

9,275,803

27,079,870

Acceptances o u ts ta n d in g .............................................................................................................

O ther lia b ilitie s ...............................................................................................................................

1,897,569

7,742,224

Total lia b ilitie s...................................................................................................... 345,489,177 586,551,343 678,416,789 767,005,602 840,559,996 874,719,632

M inority interest in consolidated subsidiaries ................................................................... 3,551

6,443,382

5,594

6,909,306

5,473

7,808,584

5,113

8,676,953

4,470

Reserves on loans and securities-total............................................................................... 4,011,273 9,010,387

Reserves fo r bad debt losses on lo a n s ........................................................................... 4,011,273 6,151,274 6,623,801 7,526,744 8,376,683 8,654,714

O ther reserves on loans3 ..................................................................................... 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

169,113

186,560

68,716,522

Reserves on securities3 ..................................................................................................................

Capital accounts-total ............................................................................... 29,904,934

Capital notes and d e b e n tu re s .................................................................................................................. 1,652,701 2,956,180 4,092,820 4,117,351 4,259,531 4,407,892

E quity c a p ita l- to ta l.................................................................................................................................... 28,252,233 43,948,866 48,274,876 53,721,270 59,027,668 64,308,630

Preferred stock...................................................................................................................................... 39,890 91,930 68,924 65,650 43,460 47,881

Common stock.......................................................................................................................... 8,507,770 11,811,129 12,853,653 13,846,071 14,789,463 15,565,026

Surplus ........................................................................................................................ 13,464,797 19,895,816 21,528,422 23,593,311 25,313,257 26,712,935

Undivided profits................................................................................................................................. 5,437,575 11,135,068 13,012232 15,361,857 17,969,789 21,182,330

Reserve for contingencies and other capital reserves................................................................ 802,201 1,014,923 811,645 854,381 911,699 800,458

P E R C E N T A G E S

Of total assets:

Cash and balances w ith o ther ba n ks............................................................................................................. 15.9% 15.4% 15.2% 14.0% 13.8% 13.5%

U.S. Treasury securities and securities o f oth e r U.S. G overnm ent agencies and c o rp o ra tio n s .. 16.8 12.5 11.6 9.9 9.1 12.0

Other s e c u ritie s ............................................................... 10.5 14.0 13.3 12.7 12.2 11.9

Loans (in cluding Federal funds sold and securities purchased under

agreements to re s e ll)............................................................................................................................ 54.1 54.4 56.2 59.3 59.8 56.7

Other assets.......................................................................................................................................................... 2.7 3.8 3.7 4.0 5.2 5.9

Total capital a c c o u n ts ...................................................................................................................................... 7.9 7.3 7.1 7.0 7.0 7.3

Of total assets other than cash and U.S. Treasury securities:

Total capital a c c o u n ts ........................................................................................................... 11.5 9.8 9.4 8.8 8.7 9.3

Num ber o f b a n k s ..................................................................................................................................................... 13,547 13,612 13,733 13,976 14,228 14,384

1 For description o f changes in 1969 in the R eport o f C ondition, see pp. 157-158 and notes to tables.

2Assets include "O th e r loans and discounts” at gross (before deduction of valuation reserves) value, as reported in 1 9 7 1 -1 9 7 5 .

3 N ot available p rio r to figure shown, see note 1.

4 P rior to December 31, 1966, "Federal funds sold (lo aned)" were included in "O th e r loans";since 1967, includes securities purchased under agreements to resell, w hich previously were reported w ith "Loans to domestic 

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 Prior 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 LIABI LITIES OF BANKS

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 110. ASSETS AND L IA B ILIT IE S OF INSURED M UTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1965, 1971-1975 

(Amounts in thousands of dollars)

Asset, lia b ility , or surplus account item Dec. 31, 1965 Dec. 31, 1971 Dec. 31, 1972 Dec. 31, 1973 Dec. 31, 1974 Dec. 31, 1975

T otal assets.................................................................................................................................................................. 50,709,0471 77,891,927 87,650,051 93,012,515 95,589,401 107,280,765

Cash, balances w ith banks, and c o llectio 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 ...........................................................................

Other 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 .........................................................................................................

904,000

142,598

493,600

212,193

55,609

1,273,735

195,679

551,149

445,384

81,523

1,520,399

215,345

568,211

627,530

109,313

1,847,776

226,905

711,172

817,495

92,204

2,053,353

268,102

6 83,943

1,022,757

78,551

2,195,390

308,887

706,116

1,091,274

89,113

S e c u ritie s -to ta l................................................................................................................................................... 8,770,371 18,491,379 22,636,737 21,871,412 2 2 ,684,614 30,421,034

U nited States G overnm ent and agency s e c u r itie s - to ta l.................................................................

Securities maturing in 1 year or less...............................................................................................

Securities maturing in 1 to 5 years.................................................................................................

Securities maturing in 5 to 10 years...............................................................................................

Securities maturing after 10 years....................................................................................................

4,602,317

(2)

(2)

(2)

(2)

5,156,321

867,992

1,823,997

832,859

1,631,473

6,386,003

968,157

1,915,014

1,095,116

2,407,716

5,971,200

831,719

1,513,476

789,936

2,836,069

5,967,835

712^74

1,604,165

694,251

2,957,145

9,468,682

1,312,116

2,761,242

1,167,218

4,228,106

State, co u n ty , and m unicipal o b lig a tio n s ............................................................................................

C orporate b o n d s ............................................................................................................................................

O ther bonds, notes, and d e b e n tu re s ......................................................................................................

300,273

(3)

2,731,8053

373,810

9,293,507

1,194,941

857,353

11,086,004

1,370,862

907,013

10,026,920

1,713,867

882,620

10,560,303

1,856,557

1,488,631

13,503,561

2 ,329,685

C orporate s t o c k - t o t a l...............................................................................................................................

Bank...........................................................................................................................................................

1,135,976 2,472,800

288,373

2,184,427

2,936,515

329,426

2,607,089

3,252,412

364,066

2,888,346

3 ,417,299

348,290

3,069,009

3,630,475

374,851

Other ........................................................................................................................................................ 3,255,624

Federal funds sold and securities purchased under agreements to re s e ll.......................................... (4) 493,536 596,255 1,252,753 964,856 897,063

Other lo a n s - t o t a l..............................................................................................................................................

Real estate lo a n s -to ta l...............................................................................................................................

Construction loans...............................................................................................................................

Secured by farmland.............................................................................................................................

Secured by residential properties:

Secured by 1- to 4-family residential properties:

Insured by Federal Housing Administration...................................................................

Guaranteed by Veterans Administration...........................................................................

Not insured or guaranteed by FHA or V A ......................................................................

Secured by multifamily (5 or more) residential properties:

Insured by Federal Housing Administration...................................................................

Not insured by FHA.................................................................................................................

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 se curities............................................................................................

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 ).............................................................................

Commercial and industrial loans ...........................................................................................................

Loans to individuals fo r personal e x p e n d itu re s..................................................................................

A ll o ther loans (in cluding o v e rd ra fts )....................................................................................................

40,173,6741

39,435,679

(2)

46,8195

12,911,0246

10,427,3836

12,245,6126

(6)

(6) 

3,804,841

12,5054 

14,342 

21,585 

4,812 

1,913 

144,698 

515,673 

22,467

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

60,950,481

59,094,330

1,002,712

51,459

13,388,433

11,413,769

14,804,568

1,399,794

8,265,926

8,767,669

29,751

29,927

28,922

3,446

1,305

252,438

1,451,401

58,961

65,870,714

63,946,513

1,090,262

51,160

12,828,775

11,728,249

17,087,533

1,523,751

9,416,887

10,219,896

13,679

29,473

4,441

2,221

1,323

173,322

1,665,365

34,377

67,449,217

65,339,748

821,250

49,185

12,052,069

11,501,239

18,275,751

1,688,126

10,076,268

10,875,860

18,339

26,324

743

930

1,416

175,360

1,812,329

74,028

70,812,040

68,371,859

824,494

48,239

11,587,451

11,342,670

20,123,915

1,949,245

10,693,613

11,802,232

25,275

32,714

0

1,480

1,456

288,976

2,052,147

38,133

172 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T otal loans and se cu ritie s............................................................................................................. 4 8 ,9 4 4 ,0 4 5 1 75,051,637 8 4,183,473 88,994,879 91,098,687 102,130,137

Bank premises, fu rn itu re and fixtu re s, and other assets representing bank premises . . . 353,930 590,326 661,118 760,289 857,879 963,664

Real estate owned other than bank prem ises............................................................................... 27,295 9 0,987 147,340 180,671 233,775 418,233

Investm ents in subsidiaries n o t c o n s o lid a te d ............................................................................... (2) 41,518 59,309 64,883 82,292 94,253

O ther assets............................................................................................................................................. 479,777 843,724 1,078,412 1,164,017 1,263,415 1,479,088

T ota l lia b ilitie s and surplus a cco u n ts.................................................................................................................. 5 0,709,047 77,891,927 87,650,051 93,012,515 95,589,401 107,280,765

D e p o s its -to ta l..................................................................................................................................................... 45,887,291 71,500,831 80,571,993 84,890,128 86,814,415 98,126,107

Savings and tim e d e p o s its - to ta l............................................................................................................. 45,521,139 70,818,051 79,781,381 84,008,571 8 5,904,825 97,133,340

Savings deposits................................................................................................................................... 45,477,204 57,644,100 60,573,427 57,591,849 56,497,626 62,050,661

Deposits accumulated for payment of personal loans............................................................. 28 80 25 476 295 430

Fixed maturity and other time deposits......................................................................................... 43,907 13,173,871 19,207,929 26,416,246 29,406,904 35,082,249

Demand d e p o s its -to ta l ............................................................................................................................ 366,152 682,780 790,612 881,557 909,590 992,767

M iscellaneous lia b ilitie s - to ta l....................................................................................................................... 655,013 975,996 1,114,469 1,609,538 1,952,443 1,815,359

Securities sold under agreements to repurchase................................................................................. 22 757 26,089 217,561 108,715

Other b o rro w in g s ......................................................................................................................................... 90,800 100,045 98'980 44 5,'9 01 667*256 465^279

O ther lia b ilitie s ........................................................................................................................................... 564,213 875,951 992,732 1,137,548 1,067,626 1,241,365

Total lia b ilitie s .............................................................................................................................. 46,542,304 72,476,827 81,686,462 86,499,666 88,766,858 99,941,466

M in o rity interest in consolidated subsidiaries ......................................................................................... (2) 1 0 0 0 70

Surplus a c c o u n ts - to ta l................................................................................................................................... 4,166,743 5,415,099 5,963,589 6,512,849 6,822,543 7,339,229

Capital notes and d e b e n tu re s .................................................................................................................. 2,759 10,456 59,372 114,953 169,460 190,279

Other surplus a c c o u n ts .............................................................................................................................. 4,1 6 3 ,9 8 4 1 5,404,643 5,904,217 6,397,896 6,653,083 7,148,950

PE R C EN TAG ES

Of to ta l assets:1

Cash and balances w ith o ther banks .......................................................................................................... 1.8% 1.7% 1.7% 2.0% 2.1% 2.0%

U.S. G overnm ent and agency se c u ritie s ..................................................................................................... 9.1 6.6 7.3 6.4 6.2 8.8

O ther s e c u ritie s .................................................................................................................................................. 8.2 17.1 18.5 17.1 17.5 19.5

Loans (in cluding Federal funds sold and securities purchased

under agreements to re s e ll)............................................................................................................... 79.2 72.6 70.2 72.2 71.6 66.8

O ther assets.......................................................................................................................................................... 1.7 2.0 2.2 2.3 2.5 2.8

T otal surplus a c c o u n ts ...................................................................................................................................... 8.2 7.0 6.8 7.0 7.1 6.8

Of to ta l assets other than cash and U.S. G overnm ent and agency securities:

Total surplus a cco u n ts...................................................................................................................................... 9.2 7.6 7.5 7.6 7.8 7.7

Num ber o f banks ..................................................................................................................................................... 329 327 326 322 320 329

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 5 . See page 158 fo r in fo rm a tio n on changes in reports in 1971.

2 INIot reported separately p rio r to 1971.

3 Corporate bonds included w ith other bonds, notes, and debentures p rior 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 5 .

6 Prior to 1970, real estate loans secured by m u ltifa m ily residential properties were combined w ith those secured by 1 - to 4 - fa m ily residential properties.

"vl

coASSETS AND LIABI LITIES OF BANKS

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 111. PERCENTAGES OF ASSETS AND LIA B ILITIE S OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1975 IN 

THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1975 

BANKS GROUPED BY AMOUNT OF DEPOSITS

Asset, lia b ility , or capital account item

A ll

banks

Banks w ith deposits o f -

Less 

than 

$1 m illio n

$1 m illio n 

to

$2 m illio n

$2 m 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

T otal 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 .......................................................... 13.6 12.6 13.6 10.9 10.0 9.9 10.1 10.8 12.9 13.4 16.3

U.S. Treasury and agency securities1 ...................................... 12.0 42.0 25.8 24.7 21.1 17.8 15.9 14.7 13.3 10.1 8.5

O bligations o f States and p o litica l s u b d iv is io n s .................. 10.6 1.4 3.9 7.0 10.9 13.7 14.4 14.3 12.9 11.8 7.3

O ther s e c u ritie s .............................................................................. .8 .8 1.2 .9 .7 .9 .9 1.1 1.1 .9 .5

Federal funds sold (lo aned)2 ..................................................... 3.9 13.8 9.3 6.3 5.3 4.4 3.6 3.5 4.3 4.8 3.5

O ther loans and d is c o u n ts - to ta l............................................. 52.7 26.0 43.7 47.5 49.4 50.6 51.6 60.0 51.6 53.5 54.2

Real estate lo a n s - to ta l.......................................................... 14.3 3.3 9.6 12.4 14.6 17.3 18.3 18.8 17.1 17.1 10.1

Loans to banks and other financial in s titu tio n s .......... 4.1 .0 .4 .3 .2 .3 .5 .7 1.4 3.3 8.0

Loans to purchase or carry s e c u ritie s .............................. 1.1 .0 .1 .2 .2 .2 .3 .3 .9 .7 2.0

Loans to farm ers (excluding loans on real e s ta te ). . . . 2.1 11.3 14.1 13.4 11.3 7.5 3.7 1.8 .9 .8 .6

C om m ercial and industrial lo a n s ........................................ 18.5 3.6 6.3 7.8 8.9 10.0 12.2 14.3 16.0 17.6 24.5

Instalm ent loans fo r persanal e x p e n d itu re s .................. 8.7 6.1 9.2 9.9 10.5 11.3 12.5 12.1 11.5 9.4 5.4

Single pa ym e n t loans fo r personal e x p e n d itu re s .......... 2.4 1.1 3.3 3.0 3.1 3.3 3.4 3.2 2.8 3.1 1.5

A ll o th e r loans (including o v e rd ra fts ).............................. 1.4 .5 .6 .5 .6 .6 .6 .7 1.0 1.5 2.1

O ther assets...................................................................................... 6.3 3.5 2.5 2.7 2.5 2.8 3.4 3.5 4.0 5.4 9.7

T otal lia b ilitie s, reserves, and capital accounts ......................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

D eposits— to t a l................................................................................ 82.1 69.5 84.8 87.2 88.5 88.7 87.9 87.4 84.9 81.8 76.7

Demand................................................................................. 33.8 51.9 47.1 36.4 33.7 32.3 31.7 31.9 34.1 35.3 34.5

Time..................................................................................... 48.2 17.6 37.7 50.8 54.8 56.5 56.2 55.5 50.8 46.5 42.2

Individuals, partnerships, and corp o ra tio n s-d e m a n d . 26.1 45.2 41.8 31.6 29.0 27.7 27.2 26.9 27.0 27.5 24.4

Individuals, partnerships, and c o rp o ra tio n s -tim e .... 40.8 16.1 32.5 45.4 49.5 51.0 50.3 48.8 43.3 39.7 33.6

U.S. G o v e rn m e n t.................................................................... .4 .3 .2 .4 .4 .4 .5 .5 .5 .4 .3

States and su b d ivisio n s.......................................................... 7.0 7.3 9.5 8.8 8.5 8.5 8.5 8.9 9.2 8.9 4.6

D omestic in te r b a n k ............................................................... 5.2 .3 .3 .3 .2 .3 .5 1.2 3.7 4.5 9.3

Foreign governm ent and bank............................................. 1.4 .0 .0 (5 ) .0 (5 ) (5 ) (5 ) .1 (5 ) 3.2

O ther d e p o s its ......................................................................... 1.1 .3 .5 .8 .8 .8 .9 1.0 1.1 .9 1.4

Federal fuhds purchased (b o rrow ed)3 ................................... 5.5 .0 .1 .2 .3 .5 .9 1.5 4.2 6.5 9.1

O ther lia b ilitie s fo r borrow ed m oney ................................... .5 .0 .1 .1 .1 .1 .1 .1 .1 .5 .9

O ther lia b ilitie s 4 .............................................................................. 3.8 1.0 1.2 1.6 1.7 2.1 2.7 2.7 2.7 2.9 5.3

Reserves on loans and secu ritie s................................................ .9 .2 .5 .5 .6 .7 .7 .8 .8 .9 1.1

Capital notes and d e b 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 ................................................................. 6.7 29.3 13.2 10.3 8.7 7.6 7.3 7.1 6.7 6.6 6.2

14,138 24 204 1,877 3,110 4,818 2,177 1,036 705 102 85

S e c u ritie s held in trading accounts are included in "O th e r assets." 

in c lu d e s securities purchased under agreements to resell, 

in c lu d e s securities sold under agreements to repurchase, 

in c lu d e s m in o rity interest in consolidated subsidiaries.

5 Less than 0.05 percent.

Note: 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 mercial banks by size of bank are contained in Assets and Liabilities-Commercial and Mutual Savings

Banks (w ith 1975 R eport o f Incom e), December 31, 1975.

174 FEDERAL DEPOSIT INSURANCE CORPORATION

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Table 112. PERCENTAGES OF ASSETS AND LIABI LITIES OF INSURED M UTUAL SAVINGS BANKS OPERATING THROUGHOUT 1975 IN 

THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1975 

BANKS GROUPED BY AMOUNT OF DEPOSITS

Banks w ith deposits o f -

Asset, lia b ility , or surplus account item A ll

banks1

$5 m illion 

to

$10 m illion

$10 m illio n 

to

$25 m illio n

$25 m illio n 

to

$50 m illio n

$50 m illio n 

to

$100 m illio n

$100 m illio n 

to

$500 m illio n

$500 m illio n 

to

$1 b illio n

$1 b illio n 

or 

more

T otal 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 .................................................................... 2.0 2.8 4.0 2.3 1.9 2.2 1.9 2.1

U nited States G overnm ent and agency s e c u ritie s ....................... 8.8 15.4 7.9 8.6 9.4 9.9 9.3 7.9

C orporate b o n d s ..................................................................................... 12.6 7.5 8.5 7.8 8.3 10.0 12.0 15.1

State, co u n ty and m unicipal obligations ...................................... 1.4 .1 .9 1.2 .9 1.2 1.3 1.6

O ther s e c u ritie s ...................................................................................... 5.6 4.8 6.6 6.1 6.0 5.2 5.8 5.6

Federal funds sold and securities purchased under

agreements to resell......................................................................... .8 2.4 2.0 1.6 1.6 1.3 1.1 .3

O ther loans and discounts ................................................................. 66.0 64.9 68.6 70.0 69.6 67.5 66.0 64.6

Real estate lo a n s -to ta l......................................................................... 63.7 59.1 63.1 65.4 65.7 64.6 64.1 62.8

Construction loans......................................................................... .8 .4 .7 1.1 1.3 1.0 .5 .7

Secured by farmland...................................................................... (2) .3 .3 .3 .2 (2) .1 (2)

Secured by residential properties:

Insured by FHA......................................................................... 12.6 5.0 2.2 3.1 6.0 9.8 15.1 14.3

Guaranteed by VA ................................................................. 10.6 2.2 5.2 3.9 6.5 9.0 11.2 12.0

Not insured or guaranteed by FHA or V A ....................... 28.7 45.0 47.2 50.2 44.5 37.1 26.7 22.1

Secured by other properties....................................................... 11.0 6.2 7.5 6.6 7.2 7.8 10.5 13.7

Comm ercial and industrial lo a n s....................................................... .3 1.2 .7 .2 .4 .1 .3 .3

Loans to individuals fo r personal expenditures ......................... 1.9 4.6 4.5 4.1 3.3 2.6 1.5 1.4

A ll o th e r loans including o v e rd ra fts ................................................ .1 .1 .2 .2 .2 .1 .1 (2)

O ther a s s e ts ............................................................................................. 2.8 2.0 1.6 2.5 2.4 2.7 2.7 2.9

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........................................................................................ 91.5 91.5 91.3 91.2 91.3 91.5 91.5 91.5

Savings deposits ........................................................................... .. 57.8 66.3 61.6 60.9 60.5 59.7 58.9 55.8

Deposits accum ulated fo r paym ent o f personal lo a n s . . . . (2) (2) (2) (2) (2) (2) (2) (2)

Fixed m a tu rity and o th e r tim e d e p o s its ................................. 32.7 25.1 29.0 29.7 30.2 30.9 31.5 34.7

Demand dep o sits.............................................................................. .9 .1 .7 .7 .7 .9 1.1 .9

M iscellaneous lia b ilitie s ...................................................................... 1.7 1.2 .9 1.0 1.3 1.5 1.6 1.9

S urplus accounts ................................................................................... 6.8 7.3 7.8 7.8 7.4 7.0 6.9 6.6

Capital notes and debentures ..................................................... .2 .6 .5 .1 .2 .2 .1 .2

O ther surplus a c c o u n ts ................................................................. 6.7 6.8 7.2 7.7 7.2 6.8 6.8 6.4

N um ber o f b a n k s .......................................................................................... 329 7 23 61 75 105 32 26

1 D ollar am ounts o f assets and lia b ilitie s o f all m utual savings banks are shown in Assets and Liabilities-Commercial and Mutual Savings Banks (w ith 1975 R eport of Incom e), D e c e m b e r3 1 ,1975.

2 Zero or less than 0.05 percent.

ASSETS AND LIABI LITIES OF BANKS 175

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Federal Reserve Bank of St. Louis
Table 113. D IST R IB U T IO N OF IN SU R E D C O M M ERC IA L BA NK S IN THE U N ITED STA TES (STATES A N D OTHER A R EAS),

DECEM BER 31, 1975

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS

Ratios 

(In percent)

A ll 

ban ks

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 illion 

to

$5 m illion

$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 

o r 

more

Ratios o f obligations o f States and subdivisions to 

to ta l assets o f -

Z e r o ............................................................................................. 856 15 71 347 268 128 23 3 1 0 0

M ore than 0.0 b u t less than 1 .0 ........................................... 382 2 26 166 93 66 19 6 4 0 0

1.0 to 2 . 4 9 ................................................................................ 455 3 32 168 126 85 27 7 6 1 0

2.5 to 4 . 9 9 ................................................................................. 846 2 22 250 249 216 55 23 19 1 9

5.0 to 7 . 4 9 ................................................................................ 1,222 0 15 223 342 368 119 53 62 16 24

7.5 to 9 . 9 9 ................................................................................ 1,669 0 4 200 389 597 239 107 90 22 21

10.0 to 1 2 .4 9 ........................................................................... 2,004 1 7 149 459 698 338 169 143 21 19

12.5 to 1 4 .9 9 ............................................................................ 2,073 0 7 118 392 754 421 212 146 16 7

15.0 to 1 7 .4 9 ............................................................................ 1,629 1 10 81 267 644 333 179 100 11 3

17.5 to 1 9 .9 9 ........................................................................... 1,216 0 3 50 198 513 248 132 65 6 1

20.0 to 24.99 ........................................................................... 1,163 0 2 67 189 492 242 111 53 6 1

25.0 or m o re .............................................................................. 580 0 1 39 128 252 112 31 15 2 0

Ratios o f U.S. Treasury securities to to ta l assets o f -

Less than 5 ................................................................................ 2,964 4 26 308 634 1,054 488 228 162 26 34

5 to 9 .9 9 ..................................................................................... 4,194 4 45 423 769 1,448 729 386 308 44 38

10 to 1 4 .9 9 ................................................................................ 3,069 5 33 349 661 1,104 493 251 138 24 11

15 to 1 9 .9 9 ................................................................................ 1,681 2 27 258 427 548 261 100 50 7 1

20 to 24.99 ................................................................................. 964 1 16 189 245 332 109 40 30 1 1

25 to 29.99 ................................................................................ 537 1 16 111 164 173 44 19 9 0 0

30 to 34.99 ................................................................................ 266 0 10 73 96 53 27 6 1 0 0

35 to 39.99 ................................................................................ 179 0 6 49 49 53 15 2 5 0 0

40 to 44.99 ................................................................................ 114 2 13 35 27 28 8 0 1 0 0

45 to 49.99 ................................................................................ 57 0 3 27 15 11 0 1 0 0 0

50 or m o r e ................................................................................ 70 5 5 36 13 9 2 0 0 0 0

176 FEDERAL DEPOSIT INSURANCE CORPORATION

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R atios o f loans to to ta l assets o f -

Less than 2 0 .............................................................................. 68 6 5 23

20 to 24.99 ................................................................................. 109 1 8 31

25 to 29.99 ................................................................................. 209 0 5 43

30 to 34.99 ................................................................................. 420 1 9 89

35 to 39.99 ................................................................................. 699 2 17 124

40 to 44.99 ................................................................................. 1,161 0 17 179

45 to 49.99 ................................................................................. 1,667 2 18 219

50 to 54.99 ................................................................................. 2,263 1 26 226

55 to 59.99 ................................................................................ 2,567 2 19 272

60 to 64.99 ................................................................................ 2,408 1 22 249

65 to 69.99 ................................................................................. 1,490 4 24 190

70 to 74.99 ................................................................................. 726 2 15 134

75 or m o r e ................................................................................. 308 2 15 79

Ratios o f cash and due fro m banks to to ta l assets o f -

Less than 5 ................................................................................. 1,032 1 8 159

5.0 to 7 . 4 9 ................................................................................. 3,553 3 31 462

7.5 to 9 . 9 9 ................................................................................. 3,566 3 38 425

10.0 to 1 2 .4 9 ................................................................. 2,377 6 31 292

12.5 to 1 4 . 9 9 ............................................................................ 1,465 3 28 171

15.0 to 1 7 . 4 9 ............................................................................ 830 3 18 108

17.5 to 1 9 . 9 9 ............................................................................ 483 1 9 83

20.0 to 24.99 ............................................................................ 496 1 18 91

25.0 to 29.99 ............................................................................ 161 2 6 40

3 0.0 or m o re .............................................................................. 132 1 13 27

Ratios of to ta l dem and deposits to to ta l deposits o f -

Less than 2 5 .............................................................................. 1,445 0 4 132

25 to 29.99 ................................................................................. 2,128 2 8 188

30 to 34.99 ................................................................................. 2,649 1 20 314

35 to 39.99 ................................................................................. 2,572 2 23 314

4 0 to 44.99 ................................................................................. 2,059 1 31 294

45 to 49.99 ................................................................................. 1,360 1 15 191

50 to 54.99 ................................................................................. 820 1 18 150

55 to 59.99 ................................................................................. 440 1 17 99

60 to 64.99 ................................................................................. 226 1 6 56

65 to 69.99 ................................................................................. 130 1 8 30

70 to 79.99 ................................................................................. 92 2 11 19

80 to 89.99 ................................................................................. 53 1 12 18

90 or m o r e ................................................................................. 121 10 27 53

11 16 4 2 1 0 0

32 25 7 2 3 0 0

65 63 29 2 2 0 0

108 143 47 13 9 1 0

185 228 81 37 23 0 2

292 409 142 70 47 3 2

375 566 265 128 76 12 6

438 816 404 198 125 10 19

459 855 456 262 178 40 24

458 848 429 189 167 21 24

365 514 224 94 57 10 8

210 247 73 28 13 4 0

102 83 15 8 3 1 0

269 386 124 65 18 2 0

889 1,305 561 198 98 6 0

766 1,253 616 276 168 18 3

485 842 377 199 118 17 10

279 459 226 128 118 28 25

166 228 129 74 67 15 22

86 141 50 43 52 5 13

93 127 64 40 43 10 9

31 41 18 5 14 1 3

36 31 11 5 8 0 0

290 573 254 129 56 6 1

485 795 391 171 80 5 3

609 953 416 188 129 12 7

583 875 418 206 122 12 17

433 678 317 146 123 24 12

306 437 194 94 88 16 18

156 255 109 52 58 12 9

86 135 41 22 20 7 12

60 49 22 12 11 5 4

34 33 8 4 9 1 2

22 20 5 9 2 2 0

14 5 0 0 3 0 0

22 5 1 0 3 0 0

ASSETS AND LI ABI LITIES OF BANKS 177

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Federal Reserve Bank of St. Louis
Table 113. D IST R IB U T IO N OF IN SU R E D C O M M ER C IA L BA NK S IN THE U N ITED ST A T ES (STATES A N D O THER AREA S),

DECEM BER 31, 1975—C O N TIN U ED

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS

Ratios 

(In percent)

N um ber o f banks w ith deposits o f -

banks Less 

than 

$1 m illio n

$1 m illio n 

to

$2 m illio n

$2 m illio n 

to

$5 m illio n

$5 m illio n 

to

$10 m illio n

$10 m illio n 

to

$25 m illio n

$25 m illio n 

to

$50 m illio n

$50 m illio n 

to

$100 m illio n

$100 m illio n 

to

$500 m illio n

$500 m illio n 

to

$1 b illio n

$1 b illio n 

or 

m ore

R atios o f 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 .............................................................................. 698 1 2 23 90 266 134 92 64 14 12

7.5 to 9 . 9 9 ................................................................................. 4,755 0 8 256 761 1,793 981 494 365 51 46

10.0 to 1 2 . 4 9 ............................................................................ 4 ,3 0 8 0 22 429 950 1,627 722 313 195 29 21

12.5 to 1 4 . 9 9 ............................................................................ 1,941 1 34 324 559 637 221 99 54 6 6

15.0 to 1 7 . 4 9 ............................................................................ 914 0 24 232 294 264 65 16 17 2 0

17.5 to 1 9 . 9 9 ........................................................................... 491 3 18 156 178 98 22 12 4 0 0

20.0 to 22.49 ........................................................................... 317 0 12 116 95 71 17 3 3 0 0

22.5 to 24.99 ........................................................................... 153 1 12 63 50 21 3 3 0 0 0

25.0 to 29.99 ............................................................................ 224 6 25 100 66 19 7 1 0 0 0

30.0 to 34.99 ............................................................................ 122 2 14 63 28 14 1 0 0 0 0

35.0 to 39.99 ............................................................................ 68 1 8 40 14 1 3 0 1 0 0

40.0 or m o re .............................................................................. 104 9 21 56 15 2 0 0 1 0 0

Ratios o f to ta l capital accounts to to ta l assets o f -

Less than 5 ................................................................................. 252 0 0 13 25 106 52 23 28 2 3

5 to 5 .9 9 ..................................................................................... 1,084 0 3 64 187 396 201 112 95 11 15

6 to 6 .9 9 ..................................................................................... 3,181 1 4 249 598 1,199 561 297 215 31 26

7 to 7 .9 9 ..................................................................................... 3,667 0 29 346 724 1,343 658 307 201 35 24

8 to 8 .9 9 ..................................................................................... 2,437 0 21 297 573 887 378 167 91 14 9

9 to 9 .9 9 ..................................................................................... 1,310 0 18 228 348 422 171 69 43 5 6

10 to 1 0 .9 9 ................................................................................ 794 2 22 177 245 214 85 32 13 2 2

11 to 1 1 .9 9 ................................................................................ 449 2 19 124 136 112 36 11 8 1 0

12 to 1 2 .9 9 ................................................................................ 235 2 20 58 79 51 14 4 6 1 0

13 to 1 4 .9 9 ................................................................................ 282 6 16 107 77 51 14 9 2 0 0

15 to 1 6 .9 9 ................................................................................ 153 2 16 66 49 15 3 1 1 0 0

17 o r m o r e ................................................................................ 251 9 32 129 59 17 3 1 1 0 0

N um ber o f b a n k s ........................................................................... 14,095 24 200 1,858 3,100 4,813 2,176 1,033 704 102 85

178 FEDERAL DEPOSIT INSURANCE CORPORATION

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INCOME OF INSURED BANKS

Table 114. Income of insured commercial banks in the United States (States and other areas), 1967-1975 

Table 115. Ratios of income of insured commercial banks in the United States (States and other areas), 

1967-1975

Table 116. Income of insured commercial banks in the United States (States and other areas), 1975 

Banks grouped by class o f bank

Table 117. Income of insured commercial banks operating throughout 1975 in the United States (States 

and other areas)

Banks grouped by amount o f deposits

Table 118. Ratios o f income of insured commercial banks operating throughout 1975 in the United States 

(States and other areas)

Banks grouped according to amount o f deposits

Table 119. Income of insured mutual savings banks in the United States (States and other areas), 

1971-1975

Table 120. Ratios of income of insured mutual savings banks in the United States (States and other areas), 

1971-1975

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 or 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 th e o p tio n o f sub m ittin g th e ir reports

on a cash or an accrual basis, except tha t unearned discount on instalm ent 

loans, and incom e taxes, m ust be reported on an accrual basis. Then, there 

was the requirem ent fo r con solida tion o f m a jo rity-ow ne d subsidiaries and 

other nonbank 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 

pages 157-158 o f this re port.

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 du ring part of the year 

bu t not at the end o f the year.

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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 bo rrow 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 pe riodic depreciation charged to 

expenses. Beginning in 1969, the item "P rovision 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 no 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 su b tra ctio n fo r m in o rity interest in consolidated subsidiaries, before a rriving 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 operatin g incom e, applicable taxes on securities gains and 

losses and e xtra o rd in a ry items, 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 

R eform 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 1969-1975 reports w ith p rio r data, certain generalizations are applicable. Because o f the inclusion o f ad ditio nal items in "O p e rating expenses," "In c o m e before taxes o r se cu 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 o u ld 

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 A nnual R eport, pp. 50-52.

Beginning December 31, 1971, incom e and expenses fo r m utual savings 

banks are reported 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 o th e r sig n ifica n t nonbanking dom estic subsidiaries (see page 

158).

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. A ll 

banks are required to re port incom e taxes on an accrual basis.

Under operating incom e, certain incom e fro m 'se cu ritie s fo rm e rly in the 

"o th e r" category are shown separately beginning in 1971. Income fro m U.S. 

Treasury securities is com bined w ith incom e fro m U.S. G overnm ent agency 

and co 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 be lo w ). 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 nonoperating 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 re ported on reconcilem ent o f valuation adjustm ent p ro ­

visions were alm ost e n tire ly elim inated, except fo r a sim ple re co n cilia tio n o f 

surplus.

180 FEDERAL DEPOSIT INSURANCE C O R P O R A T IO N

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Federal Reserve Bank of St. Louis
Sources of data

N ational banks and State banks in the D istrict o f C olum bia n o t members 

o f th e Federal Reserve System : O ffic e o f the C om p troller 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 Deposit Insurance C orporation.

R EP O R T IN G OF LO SSES A N D R E S E R V E S FOR LO SSES ON LOANS,

1 9 4 8 -1 9 7 5 

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 not 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 , after allow ance fo r loan loss reserves. Beginning w ith the June 

30, 1948 report, banks were required to report gross loans, w ith total 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 re ported net if the instalm ent paym ents were applied d ire c tly to the re duction o f th e loan.)

Beginning w ith the year 1948, the incom e reports were revised to show 

separately, in a m em oranda section, the losses charged to reserves. These 

items co n tin u e d to be com bined in the non-operating expense section u n til 

1961. Recoveries credited to reserves were also item ized in the m emoranda 

section beginning in 1948, as were the am ounts transferred to and fro m

reserves during the year. Each o f these debits and credits were segregated as 

to reserves set up pursuant to IRS regulations, and oth 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 o rp 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 e n titled "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 applying the average loan loss 

percentage fo r the five m ost recent years to the average am ount o f loans 

during the current year. Since 1969, banks con tin ue to report transfers to 

and fro m reserves in the m em oranda section o f the incom e statem ent, but this 

detailed in fo rm a tio n is not 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 no 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 nonoperating expense (incom e) section, w hile d ire ct 

w rite-dow ns and oth er loan losses fo r w hich provision had been made, were 

reported separately in a 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 report was revised in a m anner sim ilar 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 

of reporting losses based on recent years average experience.) A t the same 

tim e, all valuation reserves were merged in to surplus accounts on statements 

of c o n d itio n sub m itted to the Federal supervisory agencies.

INCOME OF INSURED BAN K S

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 114. INCOME OF INSU RED C O M M E R C IA L BANKS IN THE UN ITED STATES (STATES A N D OTHER A R EA S), 1 9 6 7 -1 9 7 5

(A m ou n ts in thousands of dollars)

O p e ra tin g i n c o m e - t o t a l ...................................................................................................................

In te re s t a n d fees o n lo a n s 2 ....................................................................................................

In c o m e o n F e d e ra l fu n d s so ld an d s e c u ritie s p u rc h a s e d u n d e r

a g re e m e n ts to re s e ll2 ..........................................................................................................

In te re s t o n U .S . T r e a s u r y s e c u r it ie s ..............................................................................

In te re s t a n d d iv id e n d s o n s e c u ritie s o f o th e r U .S . G o v e r n m e n t

a g en c ies a n d c o rp o r a tio n s 3 ..........................................................................................

In te re s t o n o b lig a tio n s o f S ta te s an d p o litic a l s u b d iv is io n s 3 ......................

In te re s t a n d d iv id e n d s o n o th e r s e c u ritie s 3 ..............................................................

T r u s t d e p a r tm e n t in c o m e .................................. ‘ ..................................................................

S e rv ic e c h arg es o n d e p o s it a c c o u n t s ..............................................................................

O th e r se rv ic e ch arg es , c o lle c tio n a n d e x c h a n g e ch arges , c o m m is s io n s ,

a n d fe e s ......................................................................................................................................

O th e r o p e ra tin g i n c o m e ..........................................................................................................

O p e ra tin g e x p e n s e - t o t a l4 .............................................................................................................

S ala ries a n d w a g es o f o ffic e rs an d e m p lo y e e s ........................................................

P ens ions a n d o th e r e m p lo y e e b e n e f i t s ........................................................................

In te re s t o n d e p o s it s ...................................................................................................................

E x p e n s e o f F e d e ra l fu n d s p u rc h a s e d a n d s e c u ritie s so ld u n d e r

a g re e m e n ts to r e p u rc h a s e 5 ..........................................................................................

In te re s t on o th e r b o r ro w e d m o n e y 5 ..............................................................................

In te re s t on c a p ita l n o te s an d d e b e n tu r e s 4 ..............................................................

O c c u p a n c y e x p e n se o f b a n k p rem ise s, n e t .............................................................. Gross occupancy expense................................................................... Less rental income.................................................................................

F u r n itu r e an d e q u ip m e n t, d e p re c ia tio n , r e n ta l c o sts, se rv ic in g , e tc . .

P ro v is io n fo r lo a n losses4 .......................................................................................................

O th e r o p e ra tin g e x p e n s e s .......................................................................................................

In c o m e b e fo r e in c o m e ta x e s an d s e c u ritie s gains o r losses6 ................................

N e t c u rr e n t o p e ra tin g ea rn in g s (o ld b a s is ) ........................................................................

A p p lic a b le in c o m e ta x e s 6 .............................................................................................................

In c o m e b e fo r e s e c u ritie s g a in s o r losses6 ...........................................................................

S e c u ritie s g a ins o r losses, n e t6 ....................................................................................................

G r o s s .....................................................................................................................................................

T a x e s .....................................................................................................................................................

N e t in c o m e b e fo r e e x tr a o r d in a r y ite m s 6 ...........................................................................

E x tr a o r d in a r y ch arg es o r c re d its , n e t6 .................................................................................

G r o s s .....................................................................................................................................................

T a x e s .....................................................................................................................................................

Less m in o r ity in te re s t in c o n s o lid a te d s u b sid ia ries6 ..................................................

N e t i n c o m e ...............................................................................................................................................

R e c o v e rie s , c h a r g e -o ffs , tra n s fe rs f r o m reserves, n e t ...............................................

21,781,611

14,646,6372

2,601,900

1,904,886

820,269

987,187

411,021

409,711

16,553,642

4,537,896

667,345

7,379,863

266,476

873,541

1,059,785

186,244

533,846

2,294,675

-4,312

-904,645

25,478,404

17,120,0792

3,004,655

2,376,223

906,206

1,055,964

478,028

536,249

19,354,237

5,101,803

755,744

8,681,705

528,986

970,034

1,173,423

203,389

631,564

2^684,401

6,124,167

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

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

6,730,014

2,164,419

4,565,595

-237,707

-512,242

-274,535

4,327,888

6,914

3,994

-2,920

235

4,334,567

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

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

7,127,818

2,173,775

4,954,043

-103,695

-224,028

-120,333

4,850,348

-12,810

-35,865

-23,055

245

4,837,293

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

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

6,713,027

1,689,146

5,023,881

213,245

359,279

146,034

5,237,126

-639

-12,552

-11,913

282

5,236,205

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

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

7,250,947

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

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

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

8,706,527

2 ,121,100

6,585,427

-27,135

-73,458

-46,323

6,558,292

21,561

30,817

9,256

659

6,579,194

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

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

9,250,781

2,084,028

7,166,753

-87,052

-161,247

-74,195

7,079,701

11,920

17,877

5,957

357

7,091,264

66,558,502

43,379,504

2,294,621

4,440,640

2,348,937

4,918,518

533,244

1,601,968

1,555,360

1,653,549

3,832,161

57,581,737

10,698,250

1,988,470

26,245,936

3,322,993

377,195

294.098 

2,324,644 

2,754,742

430.098

1,532,739 

3,612,410 

7,185,002

8,976,765

1,792,696

7,184,069

37,066

34,376

-2,690

7,221,135

33,779

46,823

13,044

303

7,254,611

182 FEDERAL DEPOSIT INSURANCE C O RPOR ATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
4,319,012

1,177,154

1 ,0 2 0 ,9 8 8

1 5 6 ,1 6 6

4,692,982

1,267,044

1 ,0 8 6 ,8 8 9

1 8 0 ,1 5 5

T o t a l p ro v is io n f o r in c o m e t a x e s ..................................................................................................

F e d e ra l in c o m e t a x e s ....................................................................................................................

S ta te an d lo c al in c o m e ta x e s ..................................................................................................

1,505,336

1 ,2 8 7 ,5 1 4

2 1 7 ,8 2 2

1,863,787

1 ,6 1 9 ,7 9 0

2 4 3 ,9 9 7

1,651,807

1 ,3 6 7 ,4 9 2

2 8 4 ,3 1 5

1,598,869

1 ,2 8 8 ,7 2 5

3 1 0 , 1 4 4

1,715,439

1 ,3 3 6 ,3 1 7

3 7 9 ,1 2 2

1,759,739

1 , 3 5 7 ,3 9 4

4 0 2 , 3 4 5

1,727,041

1 ,2 2 5 ,9 2 7

5 0 1 ,1 1 4

3,141,858 3,425,938

D iv id e n d s o n c a p it a l- t o t a l7 ..............................................................................................................

Cash d iv id e n d s d e c la re d on c o m m o n s t o c k ...................................................................

Cash d iv id e n d s d e cla re d o n p r e fe r re d s to c k 7 .............................................................

1,426,202

1 ,3 4 2 ,5 3 8

8 3 ,6 6 4

1,589,114

1 ,4 8 8 ,6 7 0

1 0 0 ,4 4 4

1,769,314

1 ,7 6 2 ,2 7 9

7 ,0 3 5

2,040,027

2 , 0 3 3 ,2 8 8

6 ,7 3 9

2,230,556

2 ,2 2 5 ,1 2 5

5 ,4 3 1

2,196,868

2 , 1 9 3 ,0 5 2

3 ,8 1 6

2,429,330

2 , 4 2 5 ,6 3 3

3 ,6 9 7

2,768,104

2 , 7 6 5 ,6 7 4

2 ,4 3 0

3,032,444

3 ,0 3 0 ,2 3 0

2 ,2 1 4

M e m o ra n d a 8

R e co v erie s c r e d ite d to reserves:

O n lo a n s ...................................................................................................................................................

O n s e c u ritie s ..........................................................................................................................................

Losses ch arg ed to reserves:

O n lo a n s ...................................................................................................................................................

O n s e c u ritie s ..........................................................................................................................................

1 6 8 ,6 8 0

5 ,6 3 8

6 0 1 ,1 9 4

2 9 ,0 7 2

2 1 9 ,1 1 5

1,9 1 3

6 2 9 ,7 0 7

3 2 ,2 6 2

2 0 9 ,1 2 4

1 ,9 8 6

6 9 7 ,8 7 4

1 2 ,4 4 8

2 5 5 ,3 5 0

1 ,2 6 0

1 ,2 3 6 ,9 8 8

2 ,8 8 1

3 1 7 ,3 2 0

2 ,2 5 3

1 ,4 0 4 ,5 2 0

3 ,7 1 4

3 6 3 ,6 6 3

6 ,2 4 3

1 ,2 5 0 ,9 8 9

4 ,3 3 3

3 8 8 ,8 4 6

2 ,0 6 1

1 , 5 4 8 ,0 3 3

5 ,4 4 0

4 6 1 ,3 5 0

1 ,6 5 1

2 ,4 1 8 ,2 8 1

3 ,1 2 0

5 4 7 ,3 8 0

69 1

3 ,7 9 0 ,2 1 0

2 ,6 8 9

A verag e assets an d lia b ilitie s 9

A s s e ts -to ta l ................................................................................................................................................

Cash an d du e fr o m b a n k s ...........................................................................................................

U .S . T re a s u ry s e c u r it ie s ..............................................................................................................

O b lig a tio n s o f S ta te s an d p o litic a l s u b d iv is io n s 1 0 ..................... ..................

425,619,337

7 0 ,2 4 8 ,6 7 9

5 7 ,3 5 7 ,5 8 4

473,138,013

7 8 ,5 0 4 ,0 2 4

6 1 ,5 4 5 ,8 0 7

516,325,483

8 6 ,6 6 3 ,3 8 4

5 6 ,7 2 4 ,0 8 3 11

5 8 ,0 1 1 , 2 0 0 11

1 1 , 8 3 9 ,1 3 0 11

2 8 3 ,4 7 9 ,2 5 1

1 9 ,6 0 8 ,4 3 5 "

543,880,408

8 9 ,0 8 9 ,6 0 7

5 4 ,19 8 ,4 0 7 1 1

6 2 ,0 1 2 ,7 7 1 1 1

1 2 ,8 2 1, 6 8 7 1 1

3 0 1 , 6 6 7 ,2 4 2

2 4 ,0 9 0 ,6 9 4 1 1

603,422,720

9 5 ,6 7 3 ,5 2 7

5 9 ,9 2 3 ,5 6 2 1 1

7 4 ,6 0 6 ,1 5 3 1 1

1 8 ,2 1 6 ,0 6 4 1 1

3 2 7 , 6 3 3 ,6 8 7

2 7 , 3 6 9 , 7 2 7 ! 1

679,113,973

1 0 2 ,9 6 9 ,9 3 3

6 1 ,9 7 8 ,4 9 0 11

8 4 ,2 1 0 , 3 9 6 1 1

2 3 ,8 6 3 ,0 5 1 1 1

3 7 6 , 5 4 3 ,3 4 7

2 9 ,5 4 8 ,7 5 6 1 1

776,702,572

1 1 0 ,1 6 8 ,1 4 3

5 8 ,6 0 3 , 9 2 5 1 1

8 9 ,2 4 1 ,7 8 0 11

2 9 ,3 5 5 ,7 1 5 1 1

4 5 3 , 2 3 8 ,9 0 7

3 6 ,0 9 4 ,1 0 2 11

871,394,495

1 2 2 ,2 2 4 ,7 7 3

5 2 ,8 2 2 ,0 4 3 1 1

9 4 ,5 2 4 ,5 3 5 1 1

3 5 ,2 5 6 ,6 0 3 11

5 1 9 ,5 7 2 ,1 3 1

4 6 ,9 9 4 ,4 1 0 1 1

924,946,738

1 2 6 ,8 3 8 ,0 0 7

6 5 ,9 9 2 ,1 4 8 1 1

9 8 ,9 5 3 ,2 7 9 1 1

3 9 ,2 0 3 ,3 4 4 1 1

5 3 6 ,0 6 1 ,7 2 3

5 7 ,8 9 8 ,2 3 7 1 1

Other securities1 0 ....................................................................

Loans and discounts.................................................................

All other assets........................................................................

L ia b ilitie s and c a p it a l- t o t a l

Total deposits.........................................................................

Demand deposits...............................................................................

Time and savings deposits.................................................................

Borrowings and other liabilities..................................................

Total capital accounts .............................................................

Capital notes and debentures.............................................................

Equity capital...................................................................................

Number of employees (end of period)..............................................

Number of banks (end of period).....................................................

55,213,293

2 3 0 ,6 3 6 ,1 4 9

12,163,632

6 5 ,3 1 8 ,3 7 4

2 5 3 ,6 7 8 ,3 1 9

14,091,481

425,619,337

368,906,501 

194,982,924

173 £23,577

23,836,162 

32,876,674 

1,884,844

30,991,830

473,138,013

4 0 7 ,5 0 8 ,2 6 0

213,628,389

193,879,871

3 0 ,2 9 7 ,6 0 5

3 5 ,3 3 2 ,1 4 8

2,096,175

33,235,973

516,325,483

431,468,339

230,490,525

200,977,814

46,642,486

3 8 ,2 1 4 ,6 5 8

2,027,427

36,187,231

543,880,408

449,522,141 

237,588,875

211 £33,266

53,212,878 

41,145,389 

2,047,429

39,097,960

603,422,720

5 0 7 , 1 0 1 ,9 6 8

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

6 1 ,1 7 9 ,8 8 5

4 9 ,6 9 3 ,8 2 0

3,546,497

46,147,323

776,702,572

6 4 0 , 8 0 6 ,2 0 8

293,708,282

347,097,926

80,677,846

55,218,518

4,044,715

51,173,803

871,394,495

7 1 0 , 0 2 9 ,8 6 8

307,363,186

402,666,682

100,573,737

60,790,890

4,204,891

56,585,999

924,946,738

7 5 6 ,9 4 8 ,5 8 6

313,836,391

443,112,195

101,918,202

66,079,950

4,328,561

61,751,389

815,037 8 6 6 ,7 2 5 9 0 4 , 0 0 8 959,867 980,660 1 ,0 2 5 ,9 9 7 1,093,616 1,160,585 1,226,415

13,517 13,488 1 3 ,4 7 3 13,511 13,612 13,733 1 3 ,9 7 6 14,228 14,384

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. 179-181 also see notes to tables.

2"lncome on Federal funds sold” was included in "Interest and discount on loans" in 1968 and prior years (see 1968 report, p. 198).

3lncome from "Securities of other U.S. Government agencies and corporations" and from "Obligations of States and political subdivisions" was included in income from "Other securities" in 1968 and prior years.

4"Interest on capital notes and debentures" and "Provision for loan losses" not included in "Operating expense-total" in 1968 and prior years.

5"Expense of Federal funds purchased and securities sold under agreements to repurchase" was included in "Interest on borrowed money" in 1968 and prior years.

6Data are not available prior to 1969. See page 180 of this report.

7ln 1968 and prior years, "Dividends declared on preferred stock" was reported in combination with "Interest on capital notes and debentures."

includes only recoveries credited to, and losses charged to, reserves. All other recoveries and losses on loans and securities are credited to, and charged to, undivided profits and are included above.

9Averages of amounts reported at beginning, middle, and end of year. 1967 and 1968 averages of securities and loans have been revised to gross basis.

101n 1968 and prior years, "Obligations of States and political subdivisions" were included in "Other securities."

11 Securities held in trading accounts are included in "All other assets."

INCOME OF INSURED BANKS 183

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 115. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1967-1975

Incom e item 1967 1968 1969 1970 1971 1972 1973 1974 1975

A m o un 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 $100.00 $100.00 $100.00 $100.00

Incom e on loans1 .......................................................................................................... 67.24 67.20 69.91 69.05 65.84 66.23 71.39 74.60 68.62

Interest on U.S. Treasury s e c u ritie s ....................................................................... 11.95 11.79 9.23 8.87 9.34 8.44 6.53 5.05 6.67

7 19 7 55 8 60 8.65 7.29 6.53 7.39

Interest and dividends on o th er securities3.......................................................... 8.74 9.33 2.23 2.42 3.17 3.64 3.48 3.65 4.33

Trust departm ent income ........................................................................................ 3.77 3.56 3.32 3.26 3.46 3.40 2.75 2.21 2.41

Service charges on deposit accounts .................................................................... 4.53 4.14 3.64 3.39 3.39 3.14 2.50 2.14 2.34

Other charges, com m issions, fees, etc..................................................................... 1.89 1.88 2.25 2.43 2.72 2.67 2.36 2.07 2.48

O ther operating in c o m e ............................................................................................. 1.88 2.10 2.23 3.03 3.48 3.78 3.70 3.75 5.76

Operating e x p e n s e -to ta l4 ................................................................................................ 76.00 75.96 78.15 79.47 81.54 81.98 83.58 86.43 86.51

Salaries and w a g e s ....................................................................................................... 20.83 20.02 19.08 19.18 19.81 19.27 16.17 14.38 16.07

Pensions and other b e n e fits ...................................................................................... 3.07 2.97 2.93 3.05 3.28 3.30 2.93 2.62 2.99

Interest on tim e and savings d e p o s its .................................................................... 33.88 34.07 31.78 30.20 33.60 34.40 37.40 40.92 39.43

Interest on borrow ed m oney5 ................................................................................. 1.22 2.08 5.65 5.67 3.79 4.37 8.78 10.54 6.00

Occupancy expense of bank premises, n e t.......................................................... 4.01 3.81 3.48 3.61 ,.8 8 3.93 3.36 3.01 3.49

F urniture and equipm ent, etc................................................................................... 2.45 2.48 2.51 2.62 2.80 2.70 2.26 2.00 2.30

1.69 2.03 2.38 2.42 2.38 3.35 5.43

Other operating expenses ........................................................................................ 10.54 10.53 11.03 13.11 12.00 11.59 10.30 9.61 10.80

Incom e before incom e taxes and securities gains or losses................................... 21.85 20.53 18.46 18.02 16.42 13.57 13.49

N et cu rre n t operating earnings (old b a s is ).................................................................. 24.00 24.04

A m o u n ts per $100 o f to ta l assets

Operating in c o m e - t o t a l.................................................................................................. 5.12 5.38 5.97 6.38 6.03 5.93 6.83 7.82 7.20

Net cu rre n t operating earnings (old basis) 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 .97

Net incom e6 ......................................................................................................................... .74 .72 .84 .89 .87 .83 .85 .81 .78

A m o un ts per $ 10 0 o f to ta l capital accounts

Net incom e6 ......................................................................................................................... 9.56 9.70 11.4 8 7 11.8 9 7 11.8 5 7 11.6 0 7 12.147 11.8 9 7 11.197

Cash dividends declared on com m on s t o c k ............................................................... 4.08 4.21 4.61 4.94 4.97 4.41 4.39 4.55 4.59

Net ad d itio ns to capital fro m in c o m e ......................................................................... 5.22 5.20 6.71 6.80 6.71 6.96 7.51 7.11 6.39

A m ou n ts per $100 o f e q u ity capital

Net incom e6 ......................................................................................................................... 10.14 10.31 11.98 12.37 12.39 12.25 12.86 12.53 11.75

Special ratios

Incom e on loans per $100 o f loans1 ............................................................................ 6.35 6.75 7.60 7.95 7.31 7.08 8.35 9.79 8.52

Incom e on U.S. Treasury securities per $100 o f U.S. Treasury securities . . . 4.54 4.88 5.02 5.68 5.67 5.48 5.91 6.51 6.73

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 subdivisions2 ................................................ 3.82 4.23 4.19 4.15 4.33 4.71 4.97

Incom e on o ther securities per $100 o f o th e r securities3 ................................... 3.45 3.64 5.79 6.55 6.34 6.15 6.28 7.05 7.35

Service charges per $100 o f demand d e p o s its .......................................................... .51 .49 .49 .50 .49 .47 .45 .47 .50

Interest paid per $ 100 o f tim e and savings d e posits................................................ 4.24 4.48 4.87 4.95 4.78 4.66 5.71 6.93 5.92

Num ber of banks (end of p e r io d ) ................................................................................. 13,517 13,488 13,473 13,511 13,612 13,733 13,976 14,228 14,384

11ncludes Federal funds sold.

2"ln te re s t on State and local governm ent o b lig a tio n s" included in ''In te re s t and dividends on other securities" in 1968 and p rio r years. Incom e from 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 other U.S. G overnm ent agencies and corporations; includes interest on State and local governm ent obligations before 1969.

4 "In te re s t on capital notes and debentures'', w hich is included in ''In te re s t on borrowed m oney” in 1 9 6 9 -1 9 7 5 , and "P rovision fo r loan losses” were n o t included in "O perating e x p e n s e -to ta l” in 1968 and p rio r years,

in c lu d e s interest on capital notes and debentures (see note 4) and Federal funds purchased.

6 Because of changes in the fo rm o f reporting by banks, figures in 1 9 6 9 -1 9 7 5 are not fu lly comparable w ith those in 1968 and p rio r years; see table 114 and pp. 179-181.

7 ln com puting this ra tio , interest on capital notes and debentures has been added to net incom e, w ith tax adjustm ent at the regular corporate tax rate.

184 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), 1975

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 full year

O perating in c o m e - to ta l......................................................................................................................................... 66,558,502 38,907,384 12,460,343 15,190,775 66,516,727 41,775

Interest and fees on lo a n s .............................................................................................................................. 43,379,504 25,475,648 8,273,234 9,630,622 43,360,158 19,346

Incom e on federal funds sold and securities purchased under agreements to re s e ll.................... 2,294,621 1,383,590 331,945 579,086 2,289,422 5,199

Interest on U.S. Treasury securities .......................................................................................................... 4,440,640 2,406,807 758,721 1,275,112 4,434,622 6,018

Interest and dividends on securities o f other U.S. G overnm ent agencies and corporations . . . 2,348,937 1,194,878 268,349 885,710 2,346,691 2,246

Interest on obligations o f States and p o litica l s u b d iv is io n s ................................................................ 4,918,518 2,724,431 852,026 1,342,061 4,917,871 647

Interest and dividends on o th e r s e c u ritie s ................................................................................................ 533,244 280,207 73,582 179,455 531,684 1,560

T rust departm ent in c o m e .............................................................................................................................. 1,601,968 926,400 530,452 145,116 1,601,956 12

Service charges on deposit a c c o u n ts .......................................................................................................... 1,555,360 883,533 202,222 469,605 1,553,900 1,460

O ther service charges, c o lle ctio n and exchange charges, commissions, and fees........................... 1,653,549 1,086,980 272,473 294,096 1,650,170 3,379

O ther operating incom e ................................................................................................................................. 3,832,161 2,544,910 897,339 389,912 3,830,253 1,908

Operating e x p e n se -to ta l ...................................................................................................................................... 57,581,737 33,617,508 10,792,481 13,171,748 57,525,157 56,580

Salaries and wages of officers and e m p lo y e e s ......................................................................................... 10,698,250 6,079,354 1,984,207 2,634,689 10,682,734 15,516

Pensions and other em ployee b e n e fits ........................................................................................................ 1,988,470 1,149,758 410,787 427,925 1,986,933 1,537

Interest on d eposits........................................................................................................................................... 26,245,936 15,249,594 4,550,717 6,445,625 26,233,374 12,562

Expense of federal funds purchased and securities sold under agreements to repurchase.......... 3,322,993 2,263,426 887,571 171,996 3,322,792 201

Interest on o ther borrow ed m o n e y ............................................................................................................. 377,195 248,667 87,190 41,338 377,030 165

Interest on capital notes and d e b e n tu re s................................................................................................... 294,098 149,826 77,836 66,436 294,035 63

Occupancy expense o f bank premises, n e t................................................................................................ 2 ,324,644 1,282,188 509,827 532,629 2,320,026 4,618

Gross occupancy expense ....................................................................................................................... 2,754,742 1,565,010 589,795 599,937 2,750,075 4,667

Less rental income...................................................................................................................................... 430,098 282,822 79,968 67,308 430,049 49

F u rn itu re and equipm ent, depreciation, rental costs, servicing, etc.................................................. 1,532,739 902,250 251,979 378,510 1,529,758 2,981

Provision fo r loan lo s s e s ................................................................................................................................. 3,612,410 2,224,282 826,013 562,115 3,610,818 1,592

O ther operating e xp e n se ................................................................................................................................. 7,185,002 4,068,163 1,206,354 1,910,485 7,167,657 17,345

Incom e before incom e taxes and securities gains or lo s s e s ....................................................................... 8,976,765 5,289,876 1,667,862 2,019,027 8,991,570 -1 4 ,8 0 5

Applicable incom e ta xe s......................................................................................................................................... 1,792,696 1,068,564 384,346 339,786 1,794,404 -1 ,7 0 8

Incom e before securities gains or lo s s e s .......................................................................................................... 7,184,069 4,221,312 1,283,516 1,679,241 7,197,166 -1 3 ,0 9 7

N et securities gains or losses .............................................................................................................................. 37,066 15,998 1,388 19,680 36,954 112

Gross...................................................................................................................................................................... 34,376 19,095 -1 1 ,9 4 3 27,224 34,232 144

Taxes...................................................................................................................................................................... -2 ,6 9 0 3,097 -1 3 ,3 3 1 7,544 -2 ,7 2 2 32

Net incom e before extra o rd in a ry ite m s .......................................................................................................... 7,221,135 4,237,310 1,284,904 1,698,921 7,234,120 -1 2 ,9 8 5

E xtra o rd in a ry charges or credits, n e t ............................................................................................................... 33,779 21,795 1,683 10,301 33,775 4

Gross...................................................................................................................................................................... 46,823 34,644 724 11,455 46,819 4

Taxes....................................................................................................................................................................... 13,044 12,849 - 9 5 9 1,154 13,044 0

INCOME OF INSURED BANKS 185

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), 1975-CO NTINUED

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 ou t 

the year

Operating 

less than 

N ational State fu ll year

Less m in o rity interest in consolidated su b s id ia rie s ....................................................................................... 303 132 0 171 303 0

N et incom e ................................................................................................................................................................ 7,254,611 4,258,973 1,286,587 1,709,051 7,267,592 -12,981

D ividends on c a p ita l- to ta l....................................................................................................................................

Cash dividends declared on com m on s t o c k ...............................................................................................

Cash dividends declared on preferred s to c k ...............................................................................................

3,032,444

3,030,230

2,214

1,821,388

1,820,564

824

654,625

654,457

168

556,431

555,209

1,222

3,032,283

3 ,030,069

2,214

161

161

0

T otal provision fo r incom e t a x e s ........................................................................................................................

Federal incom e taxes .......................................................................................................................................

State and local incom e ta x e s ..........................................................................................................................

1,727,041

1,225,927

501,114

1,038,289

802,143

236,146

367,606

169,034

198,572

321,146

254,750

66,396

1,728,813

1,227,584

501,229

-1 ,7 72

-1 ,6 5 7

- 1 1 5

M em oranda1

Recoveries credited to reserves:

On lo a n s ................................................................................................................................................................

On s e c u ritie s ........................................................................................................................................................

Losses charged to reserves:

On lo a n s ................................................................................................................................................................

On s e c u ritie s ........................................................................................................................................................

547,380

691

3,790,210

2,689

356,172

261

2 ,381,304

1,212

70,993

54

775,633

210

120,215

376

633,273

1,267

547,312

691

3,789,988

2,689

68

0

222

0

N um ber o f em ployees (end o f p e r io d ) .............................................................................................................. 1,226,415 732,560 181,749 312,106 1,222,474 3,941

N um ber o f banks (end o f p e rio d )........................................................................................................................ 14,384 4,744 1,046 8,594 14,138 246

1 1ncludes 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.

186 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 1975 IN THE UNITED STATES

(STATES AND OTHER AREAS)

BANKS GROUPED BY AMOUNT OF DEPOSITS 

(Amounts in thousands of dollars)

Banks w ith deposits o fIncom 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 illion 

or 

more

Operating incom e-total ...................................... 66,516,727 5,179 25,476 545,241 1,771,545 6,030,574 5,941,339 5,619,848 11,720,994 6,499,812 28,356,719

Interest and fees on lo a n s ........................................... 43,360,158 602 13,586 303,954 1,052,641 3,732,395 3,779,153 3,617,817 7,571,251 4,307,787 18,980,972

Incom e on federal funds sold and securities 

purchased under agreements to re s e ll............. 2,289,422 221 2,496 35,389 96,673 276,090 2 31,914 191,102 439,045 256,174 760,318

Interest on U.S. Treasury s e c u ritie s ....................... 4,434,622 514 4,425 76,171 200,824 580,087 512,698 442,637 794,203 408,213 1,414,850

Interest and dividends on securities of other 

U.S. G overnm ent agencies and corporations . 2,346,691 329 2,066 51,698 148,047 390,992 316,900 274,159 502,930 142,455 517,115

Interest on obligations o f States and

p o litica l su b d ivisio n s ............................................. 4,917,871 17 798 26,481 134,381 576,331 596,218 564,870 1,024,501 515,982 1,478,292

Interest and dividends on oth e r se cu ritie s............. 531,684 6 304 6,279 16,360 56,646 62,336 67,286 129,772 63,348 129,347

T rust departm ent in c o m e ........................................... 1,601,956 3,364 0 5,167 5,459 18,128 35,236 80,605 316,142 189,281 948,574

Service charges on deposit a c c o u n ts ....................... 1,553,900 29 814 16,498 58,378 201,056 199,089 164,834 303,926 161,206 448,070

O ther service charges, c o lle ctio n and exchange 

charges, com m issions, and fe e s ......................... 1,650,170 78 518 14,835 32,311 103,997 104,677 105,740 320,695 203,628 763,691

O ther operating in c o m e ............................................. 3,830,253 19 469 8,769 26,471 94,852 103,118 110,798 318,529 251,738 2,915,490

Operating e xp e n se -to tal...................................... 57,525,157 4,862 21,791 472,171 1,503,705 5,103,559 5,111,948 4,883,164 10,370,004 5,773,017 24,280,936

Salaries and wages of office rs and em ployees . . . 10,682,734 2,484 7,626 123,327 331,557 1,006,834 972,502 928,482 2,030,382 1,112,139 4,167,401

Pensions and o th er em ployee b e n e fits .................. 1,986,933 432 726 14,690 45,109 156,718 162,104 159,924 364,290 206,735 876,205

Interest on d e p o s its ..................................................... 26,233,374 232 7,176 206,753 744,265 2,658,212 2,626,085 2,468,770 4,689,851 2,387,595 10,444,435

Expense o f federal funds purchased and securities sold under agreements to re p u rchase.. . . 3,322,792 0 9 638 2,883 18,303 37,802 67,907 438,343 377,618 2,379,289

Interest on other borrow ed m o n e y ......................... 377,030 1 14 390 1,525 6,394 9,677 7,821 33,811 35,272 282,125

Interest on capital notes and d e b e n tu re s ............. 294,035 0 9 328 1,639 11,171 16,485 21,533 57,454 37,570 147,846

O ccupancy expense o f bank premises, n e t .......... 2,320,026 196 897 17,819 53,246 179,780 197,464 199,429 472,148 243,444 955,603

Gross occupancy expense................................... 2,750,075 197 933 18,734 56,301 190,999 217,957 227,531 572,518 324,110 1,140,795

Less rental income................................................... 430,049 1 36 915 3,055 11,219 20,493 28,102 100,370 80,666 185,192

F u rn itu re and equipm ent, depreciation, rental 

costs, servicing, etc.................................................. 1,529,758 203 757 15,879 45,516 146,051 145,279 145,061 348,011 184,470 498,531

Provision fo r loan losses.............................................. 3,610,818 35 619 15,386 48,274 173,541 204,592 197,463 499,288 387,577 2,084,043

O ther operating expense.............................................. 7,167,657 1,279 3,958 76,961 229,691 746,555 739,958 686,774 1,436,426 800,597 2,445,458

Income before income taxes and securities gains

or lo sse s......................................................... 8,991,570 317 3,685 73,070 267,840 927,015 829,391 736,684 1,350,990 726,795 4,075,783

Applicable income t a x e s ...................................... 1,794,404 120 1,096 18,031 56,937 167,599 119,429 95,536 186,544 100,836 1,048,276

INCOME OF INSURED BANKS 187

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 117. INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1975 IN THE UNITED STATES

(STATES A N D O THER A R E A S )— C O N TIN U E D 

BANKS GROUPED BY AMOUNT OF DEPOSITS 

(Amounts in thousands of dollars)

Banks w ith deposits o fIncom 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

Incom e before securities gains or lo sse s ....................... 7,197,166 197 2,589 55,039 210,903 759,416 709,962 641,148 1,164,446 625,959 3,027,507

Net securities gains or losses.............................................. 36,954 3 24 775 3,080 9,076 6,234 4,817 7,818 1,900 3,227

G ro s s ................................................................................ 34,232 0 31 868 3,872 12,127 8,172 7,253 13,404 339 -1 1 ,8 3 4

Taxes ................................................................................ -2 ,7 2 2 - 3 7 93 792 3,051 1,938 2,436 5,586 -1 ,5 6 1 -1 5 ,0 6 1

Net incom e before extra o rd in a ry ite m s ....................... 7,234,120 200 2,613 55,814 213,983 768,492 716,196 645,965 1,172,264 627,859 3,030,734

E xtraordinary charges or credits, n e t............................ 33,775 0 13 -1 3 777 4,185 5,840 2,407 6,668 3,447 10,451

G ro s s ................................................................................. 46,819 0 14 70 920 5,211 6,735 2,798 8,232 3,659 19,180

Taxes ................................................................................. 13,044 0 1 83 143 1,026 895 391 1,564 212 8,729

Less m in o rity interest in consolidated su b sid ia rie s.. 303 0 0 0 2 121 21 39 -4 2 68 94

Net in c o m e ............................................................................ 7,267,592 200 2,626 55,801 214,758 772,556 722,015 648,333 1,178,974 631,238 3,041,091

Dividends on c a p ita l-to ta l ............................................. 3,032,283 44 800 14,734 49,917 200,847 223,949 232,143 532,568 329,279 1,448,002

Cash dividends declared on com m on s to c k .......... 3,030,069 44 800 14,732 49,839 200,639 223,661 231,681 531,620 329,239 1,447,814

Cash dividends declared on preferred s to c k .......... 2 ,214 0 0 2 78 208 288 462 948 40 188

T otal provision fo r incom e ta x e s ................................... 1,728,813 117 1,076 17,534 54,846 157,639 108,050 85,240 169,168 96,666 1,038,477

Federal incom e ta x e s .................................................. 1,227,584 111 962 15,473 47,744 135,481 89,607 65,375 117,683 73,179 681,969

State and local incom e taxes ................................... 501,229 6 114 2,061 7,102 22,158 18,443 19,865 51,485 23,487 356,508

M em oranda2

Recoveries credited to reserves:

On lo a n s ........................................................................... 547,312 8 161 4,430 17,040 64,852 62,232 49,457 99,441 58,944 190,747

On securities ................................................................. 691 0 0 0 98 321 170 54 4 0 44

Losses charged to reserves:

On lo a n s ........................................................................... 3,789,988 6 651 15,463 59,837 222,262 258,550 232,486 565,293 390,142 2,045,298

On securities.................................................................... 2,689 0 0 2 188 378 759 153 290 580 339

Num ber o f em ployees, December 3 1 ............................ 1,222,474 229 1,027 15,022 40,574 125,494 124,204 118,353 240,009 121,901 435,661

Num ber o f banks, December 3 1 ...................................... 14,138 24 204 1,877 3,110 4,818 2,177 1,036 705 102 85

1 This group o f banks is the same as the group shown in table 116 under the heading "O perating thro u g h o u t the year.”

in c lu d e s only recoveries credited, and losses charged, to reserves. A ll other recoveries and losses on loans and securities are credited, and charged, to undivided p ro fits and are included above.

188 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 1975 IN THE UNITED STATES

(STATES A N D O T H E R A R E A S )1 

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 billio n 

or 

more

A m o u 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 $100.00 $100.00 $100.00 $100.00 $100.00

Incom e on loans2 .................................................................................................. 15.89 63.13 62.24 64.88 66.47 67.51 67.78 68.34 70.22 69.62

Interest on U.S. Treasury securities3 ............................................................ 9.92 17.37 13.97 11.34 9.62 8.63 7.88 6.78 6.28 4.99

Interest on State and local governm ent o bligations3 .............................. .33 3.13 4.86 7.59 9.56 10.04 10.05 8.74 7.94 5.21

Interest and dividends on o th e r securities4 ................................................ 6.47 9.30 10.63 9.28 7.42 6.38 6.08 5.40 3.17 2.28

T rust d e p a rtm e n t incom e ................................................................................ 64.95 .00 .95 .31 .30 .59 1.43 2.70 2.91 3.35

Service charges on deposit a cco u n ts............................................................... .56 3.20 3.03 3.30 3.33 3.35 2.93 2.59 2.48 1.58

O ther charges, com m issions, fees, e tc............................................................. 1.51 2.03 2.72 1.82 1.72 1.76 1.88 2.74 3.13 2.69

O ther operating incom e3 ................................................................................... .37 1.84 1.61 1.49 1.57 1.74 1.97 2.72 3.87 10.28

O perating e x p e n s e -to ta l........................................................................................... 93.88 85.54 86.60 84.88 84.63 86.04 86.89 88.47 88.82 85.63

Salaries and w a g e s ................................................................................................ 47.96 29.93 22.62 18.72 16.70 16.37 16.52 17.32 17.11 14.70

Pensions and other b e n e fits .............................................................................. 8.34 2.85 2.69 2.55 2.60 2.73 2.85 3.11 3.18 3.09

Interest on tim e and savings d e p o s its ............................................................ 4.48 28.17 37.92 42.01 44.08 44.20 43.93 40.01 36.73 36.83

Interest on borrow ed m o n e y5 ......................................................................... .02 .13 .25 .34 .59 1.08 1.73 4.52 6.93 9.91

Occupancy expense o f bank premises, n e t.................................................. 3.78 3.52 3.27 3.01 2.98 3.32 3.55 4.03 3.75 3.37

F urniture and equipm ent, etc............................................................................ 3.92 2.97 2.91 2.57 2.42 2.45 2.58 2.97 2.84 1.76

Provision fo r loan losses ................................................................................... .68 2.43 2.82 2.72 2.88 3.44 3.51 4.26 5.96 7.35

O ther operating expenses................................................................................... 24.70 15.54 14.12 12.97 12.38 12.45 12.22 12.26 12.32 8.62

Incom e before incom e taxes and securities gains or losses ......................... 6.12 14.46 13.40 15.12 15.37 13.96 13.11 11.53 11.18 14.37

A m o un ts per $ 1 0 0 o f to ta l assets6

Operating in c o m e - t o t a l........................................................................................... 19.36 6.68 6.94 6.85 6.87 6.95 6.97 7.05 7.20 7.05

Incom e before incom e taxes and securities gains or losses ......................... 1.18 .97 .93 1.04 1.06 .97 .91 .81 .81 1.01

Net in c o m e .................................................................................................................... .75 .69 .71 .83 .88 .85 .80 .71 .70 .76

M em oranda8

Recoveries credited to reserves:

On loans ................................................................................................................. .03 .04 .06 .07 .07 .07 .06 .06 .07 .05

On s e c u ritie s .......................................................................................................... 0 0 (7 ) (7 ) (7 ) 0 0 (7 ) (7 ) (7 )

Losses charged to reserves:

On loans .................................................................................................................. .02 .17 .20 .23 .25 .30 .29 .34 .43 .51

On s e c u ritie s .......................................................................................................... 0 0 (7 ) (7 ) (7 ) 0 0 (7 ) (7 ) (7 )

INCOME OF INSURED BANKS 189

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 118. RA TIO S OF IN CO M E OF IN SU R E D C O M M ERC IA L BANKS O P ERA T IN G TH R O U G H O U T 1975 IN THE U N IT ED STATES

(STATES AN 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 ................................................................................................................. 2.55 5.23 6.89 9.55 11.38 11.19 10.96 10.09 9.92 11.33

Cash dividends declared on com m on s to c k ....................................................... .56 1.59 1.81 2.21 2.94 3.43 3.85 4.45 5.03 5.27

N et additions to capital fro m in c o m e ................................................................. 1.99 3.63 5.06 7.30 8.36 7.64 6.92 5.40 4.61 5.80

M em oranda8

Recoveries credited to reserves:

On loans ................................................................................................................. .10 .32 .55 .76 .95 .95 .82 .83 .90 .69

On s e c u ritie s ......................................................................................................... 0 0 (7 ) (7 ) (7 ) 0 0 (7 ) (7 ) (7 )

Losses charged to reserves:

On loans ................................................................................................................. .08 1.29 1.90 2.65 3.25 3.97 3.87 4.73 5.96 7.45

On s e c u ritie s .......................................................................................................... 0 0 (7 ) .01 .01 .01 0 (7 ) .01 (7 )

A m ounts per $100 o f e q u ity capital6

Net in c o m e ................................................................................................................... 2.55 5.23 6.91 9.62 11.58 11.48 11.35 10.53 10.56 12.12

Special ratios6

Incom e on loans per $100 o f loans2 .................................................................... 7.74 7.95 8.01 8.12 8.31 8.50 8.51 8.61 8.68 8.51

Incom e on U.S. Treasury securities per $100 o f U.S. Treasury securities? 6.77 6.48 6.28 6.07 5.88 5.72 5.65 5.40 5.69 5.12

Incom e on obligations o f States and p o litica l subdivisions per $100

o f obligations o f States and p o litica l subdivisions3 ................................... 4.51 5.43 4.83 4.78 4.80 4.85 4.88 4.80 4.84 5.01

Incom e on o th e r securities per $100 o f o th e r securities4 .............................. 8.69 6.86 7.26 7.01 6.83 6.97 6.92 6.99 7.22 7.52

Service charges per $100 o f demand d e p o s its .................................................. .21 .45 .58 .67 .71 .74 .64 .54 .51 .32

Interest paid per $100 o f tim e and savings deposits ...................................... 4.93 4.99 5.18 5.25 5.36 5.47 5.52 5.56 5.69 6.16

N um ber of banks, December 31, 1975 ............................................................... 24 204 1,877 3,110 4,818 2,177 1,036 705 102 85

1 This group o f banks is the same as the group shown in table 116 under heading "O perating thro u g h o u t the yea r.''

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."

4 lncludes interest and dividends on securities o f o th e r U.S. G overnm ent agencies and corporations,

in c lu d e s interest on capital notes and debentures and Federal funds purchased.

6 Ratios are based on assets and lia b ilitie s reported at end o f year.

7 Less than 0.005.

in c lu d e s o nly recoveries credited, and losses charged, to reserves (see table 117, note 2).

9 Reported data are adjusted (see table 115, note 7).

190 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table 119. INCOME OF INSURED M UTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1971-1975

(Amounts in thousands of dollars)

Incom e item

Operating in c o m e - to ta l.....................................................................................................................................................

Interest and fees on real estate m ortgage loans, n e t ...........................................................................................

Interest and fees on real estate mortgage loans, gross.................................................................................

Less: Mortgage servicing fees..............................................................................................................................

Interest and fees on o th e r loans ..............................................................................................................................

Interest on U.S. G overnm ent and agency securities ........................................................................................

Interest on corporate b o n d s ........................................................................................................................................

Interest on State, co u n ty, and m unicipal obligations ......................................................................................

Interest on other bonds, notes, and debentures ................................................................................................

Dividends on corporate stock ..............................................................................................................................

Incom e fro m service o p e ra tio n s .................................................................................................................................

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

Operating e x p e n s e s -to ta l...................................................................................................................................................

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

Pensions and other em ployee b e n e fits ....................................................................................................................

Interest on borrow ed m o n e y ......................................................................................................................................

Occupancy expense o f bank premises (in cluding taxes, depreciation, maintenance, rentals), net. . . .

F u rniture and equipm ent (in cluding recurring d e p re c ia tio n ).........................................................................

A ctual net loan losses (charge-offs less recoveries).............................................................................................

Other operating expenses.............................................................................................................................................

Net operating incom e before interest and dividends on d e p o s its .........................................................................

Interest and dividends on d e p o s its -to ta l ....................................................................................................................

Savings deposits ............................................................................................................................................................

Other tim e deposits .....................................................................................................................................................

N et operating incom e a fte r interest and dividends on d e p o s its ............................................................................

Net realized gains (or losses) o n -to ta l .........................................................................................................................

Securities .........................................................................................................................................................................

Real estate mortgage lo a n s ...........................................................................................................................................

Real e s ta te .........................................................................................................................................................................

O ther tra n s a c tio n s ..........................................................................................................................................................

Less m in o rity interest in consolidated subsidiaries ................................................................................................

Net incom e before ta x e s .....................................................................................................................................................

Franchise and incom e ta x e s -to ta l .................................................................................................................................

Federal income t a x ........................................................................................................................................................

State and local franchise and incom e ta x e s ..........................................................................................................

Net in c o m e ..............................................................................................................................................................................

1971 1972 1973 1974 1975

4,529,014 5,295,449 6,064,895 6,483,654 7,179,294

3,275,859 3,690,871 4,171,520 4,503,214 4,817,741

3,344,057 3,760,908 4,240,926 4,570,902 4,883,664

68,198 70,037 69,406 67,688 65,923

163,675 178,126 283,506 337,844 283,416

268,370 352,297 414,359 403,940 567,577

546,033 726,665 730,132 743,944 929,613

12,789 30,857 52,982 47,028 74,858

75,489 91,856 116,901 125,718 150,841

105,592 126,256 148,781 170,273 191,401

27,669 30,072 35,771 27,875 32,968

53,538 68,449 110,943 123,818 130,879

581,693 671,818 811,689 938,705 1,083,192

243,446 270,353 307,030 344,304 388,061

55,944 63,882 72,567 83,338 98,268

7,862 6,713 28,907 66,110 55,168

71,113 82,820 96,128 114,206 135,754

28,365 32,237 37,104 43,815 52,543

3,328 4,500 8,994 10,034 21,836

171,635 211,313 260,959 276,898 331,562

3,947,321 4,623,631 5,253,206 5,544,949 6,096,102

3,418,845 3,943,233 4,480,901 4,916,724 5,495,842

3,058,645 3,392,798 3,567,595 3,607,170 3,778,695

360,200 550,435 913,306 1,309,554 1,717,147

528,476 680,398 772,305 628,225 600,260

-58 ,28 6 -14 ,89 6 -9 2,357 -148,844 -63,283

-4 4 ,2 9 0 3,481 -6 5 ,9 7 3 -1 1 1 ,5 0 1 -2 5 ,8 9 9

-1 2 ,1 3 3 -2 5 ,9 4 4 -2 0 ,1 8 7 - 38,556 -2 2 ,9 0 4

-1 ,6 9 0 -5 0 9 -6 7 3 588 -7 ,1 6 9

-1 7 3 8,076 -5 ,5 2 4 625 -7 ,3 1 1

0 34 0 0 37

470,190 665,468 679,948 479,381 536,940

126,601 186,303 201,792 161,870 171,549

63,833 108,679 114,500 81,089 66,543

62,768 77,624 87,292 80,781 105,006

343,589 479,165 478,156 317,511 365,391

INCOME OF INSURED BANKS

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Table 119. INCOME OF INSURED M U TU A L SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1971-1975-C O N T IN U E D

(Amounts in thousands of dollars)

Incom e item 1971 1972 1973 1974 1975

Memoranda

Change in surplus accounts, net .......................................................................................................................................

Discount on securities, to ta l ............................................................................................................................................

486,234

16,513

534,229

19,630

561,695

27,805

369,166

32,406

407,314

109,383

Average assets and liabilities1

Assets-total .................................................................................................................................

Cash and due fro m banks ............................................................................................................................................

U.S. G overnm ent and agency securities ................................................................................................................

Other securities .............................................................................................................................................................

Real estate mortgage loans .........................................................................................................................................

O ther loans and discounts .........................................................................................................................................

O ther real estate .............................................................................................................................................................

A ll o ther assets ................................................................................................................................................................

Liabilities and surplus accounts-total .............................................................................................

Total d e p o s its ..................................................................................................................................................................

Savings and time deposits.......................................................................................................................................

Demand deposits......................................................................................................................................................

O ther lia b ilit ie s ................................................................................................................................................................

T otal surplus accounts .................................................................................................................................................

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

2 07,125

2,086,891

94.426.708

85,994,384

85,097,902

896,482

1,763,885

6,668,439

101.714.468

2 ,067,540

7,823,837

19,035,575

66,698,116

3,388,551

320,468

2,380,381

101.714.468

92,850,364

91,885,361

965,003

1,803,741

7,060,363

N um ber o f em ployees (end o f period) .......................................................................................................................... 30,134 32,866 35,668 37,494 40,261

Num ber o f banks (end of p e r io d ) .................................................................................................................................... 327 326 322 320 329

1 Averages o f am ounts reported at beginning, m id dle, and end of year.

192 FEDERAL DEPOSIT INSURANCE CORPORATION

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Table 120. RATIOS OF INCOME OF INSURED M UTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1971-1975

Incom e item 1971 1972 1973 1974 1975

A m o u n ts per $ 1 0 0 o f operating incom e 

O perating in c o m e - t o t a l................................................................................................................ $ 100.00 $100.00 $100.00 $100.00 $100.00

Interest and fees on real estate mortgage lo a n s - n e t......................................................... 72.33 69.70 68.78 69.45 67.11

Interest and fees on o th e r lo a n s ......................................................................... 3.61 3.36 4.68 5.21 3.95

Interest on U.S. G overnm ent and agency securities .............................................................. 5.93 6.65 6.83 6.23 7.91

Interest on corporate b o n d s ...................................................................................................... 12.06 13.72 12.04 11.47 12.95

Interest on State, c o u n ty , and m unicipal obligations ................................................. .28 .58 .87 .73 1.04

Interest on o th e r bonds, notes, and debentures ................................................................................................ 1.67 1.74 1.93 1.94 2.10

D ividends on corporate stock ........................................................................... 2.33 2.39 2.45 2.63 2.67

Incom e fro m service o p e ra tio n s ................................................................. .61 .57 .59 .43 .46

O ther operating in c o m e ........................................................................................ 1.18 1.29 1.83 1.91 1.82

Operating e x p e n s e -to ta l ........................................................................................... 12.84 12.69 13.38 14.48 15.09

Salaries ................................................................................................................. 5.37 5.11 5.06 5.31 5.41

Pensions and other em ployee b e n e fits ............................................................... 1.24 1.21 1.20 1.29 1.37

Interest on borrow ed m o n e y ......................................................................... .17 .13 .48 1.02 .77

O ccupancy expense o f bank premises (in cluding taxes, depreciation, maintenance, re n ta ls ) - n e t................. 1.57 1.56 1.58 1.76 1.89

F u rn itu re and equipm ent (in cluding recurring d e p re c ia tio n )...................................................................................... .63 .61 .61 .68 .73

A ctual net loan losses (charge-offs less re c o ve rie s).............................................................. .07 .08 .15 .15 .30

O ther operating expenses..................................................................................... 3.79 3.99 4.30 4.27 4.62

Net operating incom e before interest and dividends on d e p o s its ............................................... 87.16 87.31 86.62 85.52 84.91

Interest and dividends on d e p o s its - to ta l........................................................................................ 75.49 74.46 73.88 75.83 76.55

Savings deposits ......................................................................................................................................................................... 67.54 64.07 58.82 55.63 52.63

O ther tim e deposits ........................................................................................................................ 7.95 10.39 15.06 20.20 23.92

Net operating incom e a fte r interest and dividends on d e p o s its ........................................................................................ 11.67 12.85 12.74 9.69 8.36

Net realized gains (o r losses) o n - to ta l ...................................................................................................................................... -1 .2 9 - .2 8 - 1 .5 3 - 2 .3 0 - .8 8

S e c u ritie s .................................................................................................................... - .9 8 .07 -1 .0 9 -1 .7 2 - .3 6

Real estate mortgage lo a n s.............................................................................................................. - .2 7 - .4 9 - .3 4 - .6 0 - .3 2

Real e s ta te ...................................................................................................................................................................................... - .0 4 -.0 1 -.0 1 -.0 1 - .1 0

O ther tra n s a c tio n s ............................................................................................................................. (1) .15 - .0 9 .01 - .1 0

Less m in o rity interest in consolidated s u b s id ia rie s ............................................................................................................... .00 (1) .00 .00 (1)

Net incom e before ta x e s .................................................................................................................................. 10.38 12.57 11.21 7.39 7.48

Franchise and incom e ta x e s -to ta l .............................................................................................................................................. 2.79 3.52 3.33 2.49 2.39

Federal incom e t a x ............................................................................................... 1.41 2.05 1.89 1.25 .93

State and local franchise and incom e t a x e s ................................. ......................................................... 1.38 1.47 1.44 1.24 1.46

Net in c o m e ........................................................................................................................................................................................... 7.59 9.05 7.88 4.90 5.09

INCOME OF INSURED BANKS 193

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Table 120. RATIOS OF INCOME OF INSURED M UTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

1971— 1975— CONTINUED

Incom e item 1971 1972 1973 1974 1975

A m ou n ts per $100 o f to ta l assets2

Operating in c o m e - to ta l.................................................................................................................................................................. 6.15 6.38 6.68 6.87 7.06

O perating e x p e n s e -to ta l.................................................................................................................................................................. .79 .81 .90 .99 1.06

Net operating incom e before interest and dividends on d e p o s its ....................................................................................... 5.36 5.57 5.78 5.88 5.99

Interest and dividends on d e p o s its -to ta l ................................................................................................................................. 4.64 4.75 4.93 5.21 5.40

Net operatinq incom e a fte r interest and dividends on d e p o s its ......................................................................................... .72 .82 .85 .67 .59

Net realized gains (or losses)— t o t a l .............................................................................................................................................. - .0 8 - .0 2 - .1 0 - .1 6 - .0 6

Net incom e before ta x e s .................................................................................................................................................................. .64 .80 .75 .51 .53

Franchise and incom e ta x e s -to ta l .............................................................................................................................................. .17 .22 .22 .17 .17

N et in c o m e ........................................................................................................................................................................................... .47 .58 .53 .34 .36

Special ratios2

Interest on U.S. G overnm ent and agency securities per $ 100 o f U.S. G overnm ent and agency s e c u ritie s .......... 6.05 6.14 6.58 6.79 7.25

Interest and dividends on o th e r securities per $100 o f o th er securities ....................................................................... 6.20 6.49 6.46 6.62 7.07

Interest and fees on real estate mortgage loans per $100 o f real estate loans ............................................................. 6.26 6.53 6.77 6.96 7.22

Interest and fees on other loans per $100 of other loans ................................................................................................... 7.09 6.94 9.55 10.39 8.36

Interest and dividends on deposits per $100 o f savings and tim e d e p o s its ..................................................................... 5.12 5.22 5.44 5.78 5.98

Net incom e per $100 o f to ta l surplus accounts ..................................................................................................................... 6.56 8.41 7.64 4.76 5.18

Num ber of banks (end o f p e r io d ) ................................................................................................................................................ 327 326 322 320 329

1 Less than 0.005.

2See note to table 119.

194 FEDERAL DEPOSIT INSURANCE CORPORATION

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Table 121. 

Table 122.

Table 123. 

Table 124.

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

DEPOSIT INSURANCE DISBURSEMENTS

Number and deposits of banks closed because of financial difficulties, 1934-1975

Insured banks requiring disbursements by the Federal Deposit Insurance Corporation during

1975

Depositors, deposits, and disbursements in failed banks requiring disbursements by the 

Federal Deposit Insurance Corporation, 1934-1975

Banks grouped by class o f bank, year o f deposit p a yo ff o r deposit assumption, am ount o f

deposits, and State

Recoveries and losses by the Federal Deposit Insurance Corporation on principal disbursements for protection of depositors, 1934-1975

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 195

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Deposit insurance disbursements

Disbursements by the Federal Deposit Insurance C orporation to protect 

depositors are made when the insured deposits o f banks in financial d iffic u lties are paid o ff, or when the deposits o f a fa ilin g bank are assumed by 

another insured bank w ith the financial aid o f the C orporation. In deposit 

p a yo ff cases, the disbursem ent is the a m o u n t paid by the C orp ora tio n on 

insured deposits. In deposit assum ption cases, the principal disbursem ent is 

the am ount loaned to fa ilin g banks, or the price paid fo r assets purchased 

fro m th e 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.

Under its section 13(c) a u th o rity , the C orp ora tio n has made disbursements to fo u r 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 1 24.

Noninsured bank failures

Statistics in this report on failures of noninsured banks are com piled 

fro m in fo rm a tio n obtained fro m State banking departm ents, fie ld supervisory officials, and oth e r sources. The C orp ora tio n received no reports of 

failures of noninsured banks in 1975.

For detailed data regarding noninsured banks th a t suspended in the 

years 1934-1962, see the A n n u a l R eport fo r 1963, pp. 27-41. For 

1963-1975, see table 121 o f the re port, 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 , 

December 31, 1975.

196 FEDERAL DEPOSIT INSURANCE C O R P O R A T IO N

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Table 121. NUM BER AN D DEPOSITS OF BANKS CLOSED BECAUSE OF F IN A N C IA L D IF F IC U LT IE S , 1 9 3 4 -1 9 7 5

Noninsured1

Without 

disbursements 

by FD IC 2

With 

disbursements 

by FD IC 3

Deposits (in thousands of dollars)

Noninsured1

Without 

disbursements 

by FD IC 2

With 

disbursements 

by FD IC3

Total

1934

1935

1936

1937

1938 .

1939

1940

1941

1942

1943 ,

1944

1945

1946

1947 ,

1948

1949

1950

1951

1952

1953

1954

1955

1956

1957

1958

1959

1960

1961

1962

1963

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

61

32

72

72

48

17

23

5 

2

1 

2

6

3 

9 

5 

5

4

5

4

5 

3 

3 

9 

3 

2

9 

3 

2

4

13

52

6

3

7

7

12

5

2

3

9

26

69

77

74

60

43

15

20

5

2

5

3 

5

4 

2

3

4 

2

5 

2

2

4

3 

1

5 

1 

2

7

5 

7

4

3 

9 

7

6

1 

6

4 

13

9

25

69

75

74

60

43

15

20

5

2

1

1

5

3

2

3 

2

2

5 

2

1

4

3 

1

5

2

7

5 

7

4

3 

9 

7

6

1 

6

4 

13

37,332

13,988

28,100

34,205

60,722

160,211

142,788

29,796

19,540

12,525

1,915

5,695

494

7,207

10,674

9,217

5,555

6,464

3,313

45,101

2,948

11,953

11,690

12,502

10,413

2,593

7,965

10,611

4,231

23,444

23,867

45,256

106,171

10,878

22,524

40,134

55,244

132,152

99,784

971,296

1,575,832

339,630

141,700 4,014,261

35,364 1,968

583 13,405

592 27,508

528 33,677

1,038 59,684

2,439 157,772

358 142,430

79 29,717

355 19,185

12,525

1,915

5,695

147 347

167 7,040

10,674

2,552 6,665

42 5,513

3,056 3,408

143 3,170

390 44,711

1,950 998

11,953

360 11,330

1,255 11,247

2,173 8,240

2,593

1,035 6,930

1,675 8,936

1,220 3,011

23,444

429 23,438

1,395 43,861

2,648 103,523

10,878

22,524

40,134

4234 54,821

132,152

79,304 20,480

971,296

1,575,832

339,630

85 

' 328

1,968

13,320

27,508

33,349

59,684

157,772

142,430

29,717

19,185

12,525

1,915

5,695

347

7,040

10,674

5,475

5,513

3,408

3,170

18,262

998

11,953

11,330

1,163

8,240

2,593

6,930

8,936

'23,444

23,438

43,861

103,523

10,878

22,524

40,134

54,821

132,152

20,480

971,296

1,575,832

339,630

1 For information regarding each of these banks, see table 22 in the 1963 Annual Report (1963 and prior years), and explanatory notes to tables regarding banks closed because of financial difficulties in subsequent annual reports. One noninsured 

bank placed in receivership in 1934, with no deposits at time of closing, is omitted (see table 22, note 9). Deposits are unavailable for 7 banks.

2 For information regarding these cases, see table 23 of the Annual Report for 1963.

3 For information regarding each bank, see the Annual Report for 1958, pp. 48-8 3 and pp. 98-127, and tables regarding deposit insurance disbursements in subsequent annual reports. Deposits are adjusted as of December 31, 1975.

4 Revised.

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 197

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Federal Reserve Bank of St. Louis
Table 122. INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1975

Case

num ber Name and loca tio n

Class of 

bank

Num ber of 

depositors or 

accounts1

Date of closing or 

deposit assumption

First paym ent to 

depositors or 

disbursem ent by 

FDIC

FDIC

disbursem ent2

Receiver or liq u id a tin g agent 

or assuming bank

D eposit

p a y o ff

304 Swope Parkway N ational Bank 

Kansas C ity, Missouri

N 6,497 January 3 ,1 9 7 5 January 4, 1975 $ 4,925 ,9 7 8 Federal Deposit Insurance C orporation

305 F ra n klin Bank 

H ouston, Texas

NM 4,353 March 2 4 ,1 9 7 5 March 29, 1975 12,417,222 Federal D eposit Insurance C orporation

306 The Peoples Bank o f the 

V irgin Islands 

St. Thomas, C harlotte 

A m alie, V irg in Islands

NM 11,073 O ctober 2 4 ,1 9 7 5 O ctober 25, 1975 8,712,163 Federal D eposit Insurance C orporation

Deposit

assum ption

210 N orthern O hio Bank 

Cleveland, Ohio

NM 7,500 February 19, 1975 88,895,164 N ational C ity Bank 

Cleveland, Ohio

211 Chicopee Bank & T rust 

C om pany

Chicopee, Massachusetts

NM 6,919 May 9 ,1 9 7 5 4 ,995,615 H olyoke N ational Bank 

H o lyo ke , Massachusetts

212 A lgom a Bank

Algom a, Wisconsin

NM 3,244 May 30, 1975 3,698,602 First State Bank o f Algom a 

Algom a, Wisconsin

213 Bank o f Picayune 

Picayune, Mississippi

NM 12,700 June 18, 1975 11,706,469 Hancock Bank

G u lfp o rt, Mississippi

214 Bank o f Chidester 

Chidester, Arkansas

NM 904 July 1, 1975 1,688,458 The M erchants and Planters Bank 

Camden, Arkansas

215 State Bank o f Clearing 

Chicago, Illin o is

M 19,353 July 1 2 ,1 9 7 5 46,886,732 Clearing Bank 

Chicago, Illin o is

216 A stro Bank

H ouston, Texas

NM 1,675 October 16,1 9 7 5 3,866,387 C om m onw ealth Bank o f H ouston 

H ouston, Texas

217 Am erican C ity Bank & T rust 

C om pany, N.A. 

M ilw aukee, Wisconsin

N 32,105 October 2 1 ,1 9 7 5 102,577,603 M arine National Exchange Bank 

o f M ilw aukee 

M ilw aukee, Wisconsin

218 The Peoples Bank 

W illcox, A rizona

NM 2,692 December 19,1 97 5 4,175,527 U nion Bank

Tucson, A rizona

219 The F irst State Bank o f 

Jennings 

Jennings, Kansas

NM 1,350 December 2 7 ,1 9 7 5 1,574,599 The Jennings N ational Bank 

Jennings, Kansas

FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Assets1 Liab ilitie s and capital accounts1

Case

num ber Cash and 

due fro m 

banks

U.S. Governm ent 

obligations

O ther

securities

Loans,

discounts,

and

overdrafts

Banking 

house, 

fu rn itu re and 

fixtures

O ther

real

estate

Other

assets

Total Deposits O ther

lia b ilitie s

Capital

stock

Other

capital

accounts

Deposit

p a y o ff

304 $ 9 7 3,935 $ 2,260,236 $ 991,371 $ 2,951,351 $ 357,176 $ - $ 41,892 $ 7,575,960 $ 7,421,973 $ 18,278 $ 458,340 $ (322,631)

305 2,815,166 5,074,084 10,000 8,348,358 596,906 2,845,320 1,000,310 20,690,143 18,247,115 - 1,500,000 943,028

306 508,892 1,745,114 395,000 8,786,362 320,678 597,975 2,524,911 14,878,931 14,256,352 1,067,175 (444,595)

Deposit

assum ption

210 4,024,601 7,584,756 6,688,551 76,344,794 1,337,402 171,110 7,630,978 103,782,192 95,615,692 10,083,770 1,871,783 (3,789,053)

211 721,898 1,140,043 2,554,804 6,727,167 223,154 - 39,320 11,406,385 9,861,543 339,072 407,400 798,370

212 3 8 5,325 3 50,668 35,179 4,168,482 134,503 - 101,942 5,176,098 4,772,305 99,422 100,000 204,372

213 1,646,825 549,335 2,833,307 10,040,557 239,607 11,088 2,727,824 18,048,543 15,352,035 855,869 316,800 1,523,838

214 188,983 20,580 250,639 1,898,685 18,247 - 71,763 2,448,896 2,297,631 - 75,000 76,265

215 4,3 0 1 ,0 2 3 5,249,702 2,276,213 57,576,472 1,234,337 - 3,716,724 74,354,471 60,603,073 11,740,849 2,000,000 10,549

216 360,940 239,917 526,472 4,240,753 47,168 - 55,556 5,470,806 5,167,594 108,063 400,000 (204,851)

217 14,024,068 16,479,280 8,704,127 93,101,079 903,325 13,689,021 661,678 147,562,577 98,343,846 47,363,106 4,100,000 (2,244,375)

218 (293,376) 200,000 300,000 3,509,797 141,889 - 1,798,558 5,656,868 5,043,755 56,661 200,000 356,451

219 209,427 430,383 381,464 1,834,937 15,130 - 26,642 2,897,982 2,612,590 54,114 50,000 181,277

1 Figures as determ ined by FDIC agents a fte r adjustm ent o f books of the bank im m ediately fo llo w in g its closing.

2 Includes disbursem ents made to December 31, 1975, plus additional disbursements required in these cases.

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 199

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Table 123. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN FAILED BANKS REQUIRING DISBURSEMENTS BY THE 

FEDERAL DEPOSIT INSURANCE CORPORATION, 1934-1975 

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 of depositors1

Deposits1 

(in thousands o f dollars)

Disbursements by F D IC 1 

(in thousands o f dollars)

Total P ayoff

cases

Assum ptio n

cases

T otal P ayoff

cases

Assumptio n

cases

Total P ayoff

cases

Assum ptio n

cases

Principal disbursements

Advances and 

expenses2

T otal P ayoff

cases3

Assum ptio n

cases4

P a yo ff

cases5

Assum ptio n

cases6

All banks ...................................... 519 300 219 2,964,223 614,772 2,349,451 3,973,114 449,336 3,523,778 1,513,219 315,043 1,198,176 6,691 74,198

Class of bank

N ational ............................................. 97 35 62 1,368,269 105,042 1,263,227 2,721,152 111,173 2,609,979 709,231 62,971 646,260 2,446 11,210

State m em ber F.R.S.......................... 29 10 19 402,129 88,894 313,235 273,153 34,388 238,765 167,177 26,506 140,671 301 20,626

N onm em ber F.R.S.............................. 393 255 138 1,193,825 420,836 772,989 978,809 303,775 675,034 636,811 225,566 411,245 3,944 42,362

Year7

1934 9 9 15,767 15,767 1,968 1,968 941 941 43

1935 ..................................................... 25 24

....

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 4 9,388 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

1941 ..................................................... 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

1951 2 2 5,276 5,276 3,408 3,408 1,885 1,885 127

1952 3 3 6,752 6,752 3,170 3,170 1,369 1,369 195

1953 2 2 24,469 24,469 18,262 18,262 5,017 5,017 428

1954 2 2 1,811 1,811 998 998 913 913 145

1955 ..................................................... 5

' ■ v 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 " V 9,587 4,380 5,207 8,240 4,156 4,084 3,026 2,796 230 38 31

1959 3 3 3,073 3,073 2,593 2,593 1,83 5 1,835 51

1960 1 1 11,171 11,171 6,930 6,930 4,765 4,765 82

200 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
1961 ..................................................... 5 5 8,301 8,301

1962 .....................................................

1963 ..................................................... 2 2 36,433 36,433

1964 ..................................................... 7 7 19,934 19 934

1965 ..................................................... 5 3 "l 15*817 14*363 1,454

1966 ..................................................... 7 1 6 95,424 1,012 94,412

1967 ..................................................... 4 4 4,729 4,729

1968 ..................................................... 3 3 12 850 12,850

1969 ..................................................... 9 4 5 27,374 6,544 20*830

1970 ..................................................... 7 4 3 31,433 20,403 11,030

1971 ..................................................... 6 5 1 71,950 31,850 40,100

1972 ..................................................... 1 1 23,655 23,655

1973 ..................................................... 6 3 ” 3' 349,699 8,382 341,317

1974 ..................................................... 4 4 704,283 704,283

1975 ..................................................... 13 3 10 11 O',377 21,935 88*442

Banks w ith deposits o f

Less than $ 1 00,000 ......................... 107 83 24 38,347 29,695 8,652

$ 1 00,000 to $250,000 .................... 109 86 23 83,370 65,512 17,858

$ 2 5 0,000 to $ 50 0,000 .................... 62 37 25 92,179 57,287 34,892

$ 5 00,000 to $ 1 ,0 0 0 ,0 0 0 .................. 71 35 36 160,000 73,908 86,092

$1,00 0,0 0 0 to $2,00 0 ,0 0 0 ............. 57 21 36 209,818 70,334 139,484

$2,000,000 to $5,00 0 ,0 0 0 ............. 53 21 32 285,804 85,353 200,451

$5,000,000 to $10,000,000 31 7 24 284,090 50,445 233,645

$10,000,000 to $25,000,000 . . . . 15 7 285,067 142,352 142,715

$25,000,000 to $50,000,000 .... 5 1 4 284,809 12,481 272,328

$50,000,000 to $ 1 0 0 ,0 0 0 ,0 0 0 ... 5 1 4 209,505 27,403 182,102

$100,000,000 to $ 5 00,000,000 . . 2 2 66,232 66,232

$500,000,000 to $1,00 0 ,0 0 0 ,0 0 0 . 1 1 335,000 335,000

$1,000,000 or m o r e ......................... 1 1 630,000 630,000

State

A la b a m a ................................................ 4 2 2 9,170 2,059 7,111

Arizona ................................................ 1 1 2,692 2,692

Arkansas ............................................. 8 " 6 ' 2 6^350 4,541 U 0 9

C a lifo rn ia ............................................. 5 3 2 356,059 17,890 338,169

C olorado ............................................. 6 3 3 11,492 2,312 9,180

C o n n e c tic u t........................................ 2 2 5 379 5,379

F lo rid a .................................................. 5 2 " 3’ 14',082 U 2 5 12,357

G eorgia.................................................. 10 8 2 9,410 8,797 613

Idaho ..................................................... 2 2 2,451 2 451

Illin o is .................................................. 23 10 ' 13' 1 0l',651 44',3 79 57,272

Indiana .................................................. 20 15 5 30,006 12,549 17,457

Iowa ..................................................... 10 5 5 23,824 5,736 18,088

Kansas .................................................. 11 6 5 8,065 3,824 4,241

K entucky ............................................. 25 19 6 39,925 18,964 20,961

L o u is ia n a ............................................. 4 4 8,999 8,999

M a in e ..................................................... 1 1 9,710 9 710

M a ry la n d ............................................. 5 ” 2 3 22,567 6,643 15*924

Massachusetts...................................... 4 1 3 39,620 23,655 15,965

M ich igan................................................ 14 5 9 172,603 10,448 162,155

M in nesota............................................. 5 5 2,650 2,650

8,936 8,936 6,201 6,201 154

23,444 23,444 19,230 19,230 347

23,438 23,438 13,744 13,744 596

43,861 42,889 972 11,431 10,958 473 632 123

103,523 774 102,749 8,732 735 7,997 35 1,601

10,878 10,878 8,126 8,126 241

22,524 22,524 5,586 5,586 1,111

40,134 9,012 31,122 37,585 7,604 29,981 294 4,326

54,821 33,489 21,332 49,120 29,354 19,766 688 1,641

132,152 74,605 57,547 160,894 53,791 107,103 755 8,571

20,480 20 480 16,275 16,275 366

971,296 25,795 945,501 398,947 16,933 382,008 1,032 683

1,575,832 1,575,832 173,028 173,028 5,728

339,630 39,958 299,672 301,416 27,382 274,034 352 2,875

6,418 4,947 1,471 5,000 4,309 691 88 154

17,759 13,920 3,839 12,906 11,554 1,352 209 173

22,315 12,921 9,394 15,615 10,549 5,066 164 611

53,869 26,265 27,604 35,521 20,426 15,095 408 2,339

76,462 27,888 48,574 44,267 22,068 22,199 693 3,712

172,770 67,778 104,992 101,820 49,643 52,177 1,064 7,183

213,117 55,867 157,250 113,476 38,220 75,256 870 9,790

249,197 132,672 116,525 154,324 101,553 52,771 1,483 7,794

199,594 40,176 159,418 95,414 9,700 85,714 573 26,075

471,972 66,902 405,070 294,622 47,021 247,601 487 10,607

112,703 112,703 165,910 165,910 4,703

931,955 931,955 374,342 374,342 652

1,444,982 1,444,982 100,000 100,000 1,055

6,170 3,985 2,185 3,567 2,572 995 94 91

5,044 5,044 4,175 4,175 5

4,836 1,942 2,894 3,408 1,576 1,832 . 43 125

979,253 46,220 933,033 400,210 12,946 387,264 1,320 1,490

18,593 3,797 14,796 8,421 2,191 6,230 188 1,754

1,526 1,526 1,242 1,242 8

17,665 2,668 14,997 6,171 2,139 4,032 65 698

1,959 1,870 89 1,620 1,551 69 33 33

1,894 1,894 1,493 1,493 29

115,259 28,972 86,287 80,163 23,924 56,239 505 1,130

13,595 3,933 9,662 6,197 3,096 3,101 39 384

24,364 8,535 15,829 14,425 6,469 7,956 144 437

7,665 4,358 3,307 5,668 3,601 2,067 60 72

15,522 5,213 10,309 11,943 4,505 7,438 119 558

9,735 9,735 5,038 5,038 146 %

5,450 5,450 2,346 2,346 665

4,566 828 3,738 3,109 735 2,374 9 371

33,361 20,480 12,881 22,831 16,275 6,556 365 1,181

194,399 13,477 180,922 141,295 12,242 129,053 204 11,021

818 818 640 640 17

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS

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Table 123. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN FA ILED BANKS REQUIRING DISBURSEMENTS BY THE 

FEDERAL DEPOSIT INSURANCE CORPORATION, 1934-1975-C O N T IN U E D 

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 Num ber o f depositors1

Deposits1 

(in thousands of dollars)

Disbursements by F D IC 1 

(in thousands o f dollars)

T otal P ayoff

cases

Assum ptio n

cases

Total Payoff

cases

Assum ptio n

cases

Total P ayoff

cases

Assum ptio n

cases

Principal disbursem ents

Advances and 

expenses2

T otal P ayoff

cases3

Assum ptio n

cases4

P ayoff

cases5

Assum ptio n

cases6

Mississippi ........................................... 4 3 1 14,351 1,651 12,700 15,686 334 15,352 11,918 257 11,661 5 230

M is s o u ri................................................ 52 38 14 55,554 37,977 17,577 29,151 18,166 10,985 21,450 14,184 7,266 257 1,102

M o n ta n a ................................................ 5 3 2 1,500 849 651 1,095 215 880 639 186 453 6 21

8 8 7,773 7,773 11,644 11,644 8,116 8,116 149

New Hampshire . ............... 1 1 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 55,657 515 20,154

New Y o rk ........................................... 27 3 24 899,621 28,440 871,181 1,590,421 13,286 1,577,135 167,997 10,836 157,161 32 11,902

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

Ohio ..................................................... 5 2 3 21,251 7,585 13,666 102,838 2,345 100,493 90,682 1,610 89,072 7 1,066

O kla h o m a .............................................. 12 8 4 27,650 20,149 7,501 18,920 11,053 7,867 10,284 7,936 2,348 178 563

O re g o n ................................................... 2 1 1 3,439 1,230 2,209 2,670 1,368 1,302 1,948 986 962 11 81

P ennsylvania......................................... 30 8 22 168,834 43,828 125,006 84,595 14,340 70,255 60,149 10,133 50,016 75 10,067

South C a ro lin a .................................... 3 1 2 68,080 403 67,677 113,553 136 113,417 60,644 136 60,508 3,851

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 ..................................................... 42 32 10 96,746 76,855 19,891 157,946 126,346 31,600 106,647 88,594 18,053 1,488 1,945

Utah 1 1 3,254 3,254 5,992 5,992 3,499 3,499 296

V e rm o n t................................................ 3 " i 1 11,057 8,687 2,370 3,725 3,375 350 3,445 3,259 186 21 22

V irginia ................................................ 9 4 5 35,715 12,638 23,077 17,779 7,652 10,127 8,263 3,867 4,396 302 505

W ashington........................................... 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 .............................................. 33 20 ' 13' 62,247 18,739 43,508 112,627 5,966 106,661 116,424 5,096 111,328 54 1,422

W yom ing . . . . ............. 1 1 3,212 3,212 2,033 2,033 202 202 19

Other Areas

V irgin Islands . . 1 1 11,085 11,085 14,275 14,275 10,000 10,000 91

1 A djusted to December 31, 1975. In assum ption cases, num ber o f depositors refers to num ber of deposit accounts.

2 Excludes $723 thousand o f nonrecoverable insurance expenses in cases th a t were resolved w ith o u t paym ent of claims or a disbursem ent to fa cilita te assumption o f deposits by another insured bank and other expenses o f field 

liq u id a tio n em ployees n o t chargeable to liq u id a tio n activities,

in c lu d e s estim ated additional disbursem ents in active cases.

4 Excludes excess collections turned over to banks as additional purchase price at te rm ination of liq u id a tio n .

5These disbursem ents are not recoverable by the C orp o ra tio n ; they consist alm ost w h o lly of field p a y o ff expenses.

in c lu d e s advances to p ro te ct assets and liq u id a tio n expenses o f $69,073 thousand, all of which have been fu lly recovered by the C orporation, and $5,125 thousand of nonrecoverable expenses.

7 No cases in 1962 required disbursements. Disbursem ents totals fo r each year relate to cases occurring during that year, including disbursements made in subsequent years.

Note: Due to rounding differences, com ponents may n o t add to totals.

202 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table 124. RECOVERIES AND LOSSES BY THE FEDERAL DEPOSIT INSURANCE CORPORATION ON PRINCIPAL 

DISBURSEMENTS FOR PROTECTION OF DEPOSITORS, 1934-1975 

(Amounts in thousands of dollars)

Liquidation All cases Deposit payoff cases Deposit assumption cases

of deposit payoff 

or deposit 

assumption

Number

of

banks

Principal

disbursements

Recoveries 

to Dec. 

31, 1975

Estimated

additional

recoveries Losses1

Number

of

banks

Principal

disbursements2

Recoveries 

to Dec. 

31, 1975

Estimated

additional

recoveries Losses1

Number

of

banks

Principal

disbursements3

Recoveries 

to Dec. 

31,1975

Estimated

additional

recoveries Losses1

Total ................ 519 1,513,219 719,670 556,594 236,955 300 315,043 231,619 46,239 37,185 219 1,198,176 488,051 510,355 199,770

Status

Active............. 61

458

1,178,041

335,178

941

412,697

306,973

734

556,594 208,750

28,205

207

27

273

190,007

125,036

941

123,420

108,199

734

46,239 20,348

16,837

207

34

185

988,034

210,142

289,277

198,774

510,355 188,402

11,368

Year4

1934 ............. 9 9

1935 ............. 25 8,891

14,460

6,206

12,127

15,808

28,055

60,618

70,338

23,290

10,136

3 2,682

2,333

3,672

2,425

7,152

3,796

591

24 6,026

7,735

12,365

9,092

26,196

4,895

12,278

1,612

5,500

404

4,274

6,397

9,718

7,908

20,399

4,313

12,065

1,320

5,376

363

1,752

1,338

2,647

1,184

5,797

582

213

292

1 2,865

6,725

7,116

21,387

41,574

69,239

11,602

9,213

1,672

1,099

1,768

265

1,932

5,730

6,090

20,147

40,219

66,025

11,225

8,816

1,672

1,099

1,768

265

3 930

995

1,025

1,241

1,355

3,214

378

396

1936 ............. 69 42 27 

25 

24

28 

24

7

1937 ............. 75 19,481

30,479

67,770

50

1938 ............. 74 50

1939 ............. 60 32

1940 ............. 43 74,134 19

1941 ............. 15 23,880

10,825

8

1942 ............. 20 688 6 14

1943 ............. 5 7,172 1

1,503

7,048 123 4 123

1944 ............. 2 1,462 40

1,768

40 1 1

1945 ............. 1 1,768 1

1946 ............. 1 265 265 1

1947 ............. 5 1,724 1,665

2,349

6 54 5 1,724

2,990

2,552

3,986

1,885

1,369

5,017

913

1,665

2,349

2,183

2,601

1,885

577

5,017

654

6 54

1948 ............. 3 2,990 641 3 641

1949 ............. 4 2,552 2,183 369 4 369

1950 ............. 4 3,986 2,601

1,885

577

1,385 4 1,385

1951 ............. 2 1,885 2

1952 ............. 3 1,369 792 3 792

1953 ............. 2 5,017 5,017 2

1954 ............. 2 913 654 258 2 258

1955 ............. 5 6,784 6,554 230 4 4,438 

2 795

4,208

2,582

1,031

2,768

1,738

4,765

4,699

18,792

11,949

5,671

735

230

213

1 2,346

663

2,346

1956 ............. 2 3,458 3,245 213 1 1 663

1957 ............. 1 1,031 1,031 1 1,031

2,796

1,835

4,765

6,201

19,230

13,744

10,958

735

1958 ............. 4 3,026 2,998 28 3 28

97

1 230 230

1959 ............. 3 1,835 1,738 97 3

1960 ............. 1 4,765 4,765 1

1961 ............. 5 6,201 4,699 1,502 5 1,502

1963 ............. 2 19,230 18.792 108 330 2 108 330

1964 ............. 7 13,744 11,949 135 1,661 7 135 1,661

1965 4,480

1966 

5

7

11,431

8,732

8,126

5,997

8,200

809

38

4,625

496

3

1

808 2

6

473

7,997

326

7,465

1

38

145

496

1967 ............. 4 6,779 153 1,194 4 8,126 6,779 153 1,194

1968 ............. 3 5,586

37,585

5,568

37,132

5 14 3 5,586

29,981

5,568

29,739

5 14

1969 ............. 9 318 135 " 4 ' 7,604 7,393 75 135 5 243

1970 

1971 

7

6

49,120

160,894

16,275

44,893

132,190

8,251

3,146

26,263

3,924

1,080

2,440

4,100

4

5

29,354

53,791

16,275

25,617

34,442

8,251

15,918

2,888 

16 909

850

2,440

4,100

3

1

19,766

107,103

19,276

97,748

258

9,354

230

1972 ............. 1 1 3,924

1973 ............. 6 398,947 1,022

173,028

301,416

64,909

26,218

68,976

183,639

138,310

199,737

150,400

8,500

32,702

3 16,939 3 382,008

173,028

274,034

48,991

26,218

67,562

182,617

138,310

179,520

150,400

8,500

26,952

1974 ............. 4 4

1975 ............. 13 3 27,382 1,414 20,217 5,750 10

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, 

includes estimated additional disbursements in active cases.

3Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.

4No case in 1962 required disbursements.

Note: Due to rounding differences, components may not add to totals.

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 2 0 3

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INDEX

v

J

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207

IN D E X

Absorptions:

Of insured banks requiring disbursements by FDIC. See 

Banks in financial difficulties.

Of operating banks, 1975 ........................................................................ 15-17

Of operating banks approved by FDIC, 1975 ..................... 15, 16, 35-118

Of operating banks denied by FDIC, 1975 ..................................... 1 19-126

Regulation o f ............................................................................................. 13-14

Admission of banks to insurance. See also Applications from banks:

Applications for, 1975 ............................................................................. 12-13

Number of banks admitted, by class of bank, 1975 .............................. 138

Applications from banks ....................................................................................12-14

Areas outside continental United States, banks and branches located in:

Number, December 31, 1975 ................................................... 141, 149-150

Assessments for deposit insurance....................................................................27-30

Assets and liabilities of F D IC .............................................................................26-27

Assets, liabilities, and capital of banks. See also Deposits:

Commercial banks:

Changes during 1975 ...........................................................................xi-xiii

Foreign, of U.S. b a n ks.............................................................................158

Grouped by insurance status,

June 30, 1975, and December 31, 1975 ................................. 159-166

Sources of data .........................................................................................181

Insured commercial banks:

Amounts, December call dates, 1965, 1971-1975 ................... 169-171

Amounts, June 30, 1975, and December 31, 1975,

by class of bank ...........................................................................159-166

Major categories, average, 1967-1975................................................... 183

Percentage distribution, by size of bank, 1975 .......................... 1 76-178

Percentages of items, by size of bank, 1975 ........................................174

Mutual savings banks:

Changes during 1975 ............................................................................... xiii

Grouped by insurance status, June 30, 1975, and December

31, 1975 ........................................................................................ 167-168

Sources of data .........................................................................................181

Insured mutual savings banks:

Amount, December call dates, 1965, 1971-1975 ..................... 172-173

Major categories, average, 1971-1975 ................................................... 192

Percentages of items, by size of bank, 1975 ........................................175

Assets, purchase of, by FDIC from banks in financial d iffic u ltie s ................ 3-5

Assumption of deposits of insured banks w ith financial aid o f FDIC.

See Banks in financial difficulties.

A ttorney General of the United S tates....................................................................14

A ttorney General of the United States, summary

reports on absorptions ................................................................................. 35-126

A udit of F D IC ...................................................................................................... 25, 32

Bad-debt reserves. See Valuation reserves.

Bank Merger A ct of 196 0 .................................................................................... 13-14

Bank ownership, changes, regulation o f ................................................................. 21

Bank performance, 1975 ....................................................................................xi-xiii

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Bank Protection A ct of 1968 ............................................................................. 21-22

Bank supervision. See Supervision of banks; Examination of 

insured banks.

Banking offices, number of. See Number of banks and branches.

Banks in financial difficulties:

Insured banks requiring disbursements by FDIC:

Assets and liabilities o f ....................................................................198-199

Deposit size o f ...........................................................................................201

Deposits protected, 1934-1975 ..................................... 3, 4, 6 , 200-202

Disbursements by FDIC, 1934-1975 ...................................4-8, 200-203

Failures in 1975 ......................................................................................... 6-8

Loans made and assets purchased by FDIC ........................................7-8

Location by State, 1934-1975 ...................................................... 201-202

Losses incurred by depositors ....................................................................6

Losses incurred by F D IC ....................................................................7, 203

Number of, 1934-1975 ...........................................................................197

Number of deposit accounts, 1934-1975 ................................... 200-202

Recoveries by FDIC on assets acquired, 1934-1975 ................ 5, 7, 203

Noninsured banks:

Number and deposits of commercial banks closed,

1934-1975 .................................................................................... 196-197

Banks, number of. See Number of banks and branches.

Board of Directors of FDIC. See Federal Deposit Insurance Corporation.

Board of Governors of the Federal Reserve System. See Federal Reserve 

authorities.

Branches:

Establishment approved by FDIC, 1975 ......................................................13

Examination of, 1974 and 1975 ...............................................................9, 11

Number of. See Number of banks and branches.

Call reports. See Assets, liabilities, and capital of banks;

Reports from banks.

Capital of banks. See Assets, liabilities, and capital of banks; Banks in 

financial difficulties; Income of insured commercial banks;

Examination of insured banks.

Cease-and-desist proceedings .............................................................................16-18

Charge-offs by banks. See Income of insured commercial banks;

Income of insured mutual savings banks; Valuation reserves.

Class of bank, banking data presented by:

Absorptions ............................................................................................. 15, 138

Income of insured commercial banks, 1975 ................................... 185-186

Insured banks requiring disbursements by FDIC, 1934-1975 ..............200

Number of banks and banking offices, 1 9 7 5 .......................... 138, 142-150

Number of banks and d e p o sits....................................................................151

Classification of b a n k s ............................................................................................. 137

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.

Compliance examinations ...........................................................................11-12, 21

Comptroller of the C u rre n c y ............................iv, v, 7, 9 , 14, 24, 130, 131, 181

Consolidations. See Absorptions.

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Credit, bank. See Assets, liabilities, and capital o f banks.

Crime reports received by F D IC ............................................................................... 22

Demand deposits. See Assets, liabilities, and capital of banks; Deposits.

Deposit insurance, applications fo r ...........................................................................9

Deposit insurance national banks............................................................................... 7

Depository Institutions Amendments of 1975 ................................................... 129

Deposits, savings:

Ownership by profit-making organizations...............................................132

Withdrawal by telephone .............................................................................132

Deposits insured by FDIC:

Estimated insured deposits, December 31, 1934-1975 ..................... 29-31

Increase in maximum per depositor .......................................................... xiv

Survey of, on June 30, 19 7 5 ................................................... xiv-xvi, 22-23

Deposits of: See also Assets, liabilities, and capital of banks:

Banks closed because of financial difficulties, 1934-1975 ................ . .197

Commercial banks:

By insurance status and type o f bank, and type of account,

June 30, 1975 .........................................................................................161

By insurance status and type o f bank, and type of account,

December 31, 1975 ............................................................................... 165

By State and deposit size of bank ...............................................152-156

Insured commercial banks:

Average demand and time deposits, 1967-1975 .................................183

By class of bank, December 31, 1975 .................................................151

By deposit size of bank, December 31, 1975 ..................................... 151

December call dates, 1965, 1971-1975 ...............................................170

Mutual savings banks, by insurance status, June 30, 1975, and

December 31, 1975 ..................................................................................168

Insured mutual savings banks:

Average demand and time deposits, 1971-1975 .................................192

December call dates, 1965, 1971-1975 ...............................................173

Deposits, number of insured commercial banks w ith given ratios of

demand to total deposits...................................................................................... 177

Directors of FDIC. See Federal Deposit Insurance Corporation.

Disbursements. See Banks in financial difficulties.

Disclosure of bank re p o rts ...................................................................................... 131

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 of insured commercial banks: Income of

insured mutual savings banks.

Employees:

FDIC .................................................................................................. 24-25,133

Insured commercial banks,

number and compensation, 1967-1975 ........................................ 182-183

Insured mutual savings banks, number and

compensation, 1971-1975 ............................................................... 191-192

Equal Credit O pportunity A c t ...........................................................................20-21

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European-American Bank & Trust C o m p a n y........................................................27

Examination of insured banks.

By FDIC, 1975 ............................................................................................. 9-12

Regions and regional directors ......................................................................vi

Expenses of banks. See Income of insured commercial banks;

Income of insured mutual savings banks:

Expenses of FDIC ................................................................................................27-31

Failures, See Banks in financial difficulties.

Fair Credit Billing A c t .........................................................................................20,21

Fair Credit Reporting A ct ........................................................................................ 20

Federal Deposit Insurance Corporation:

Actions on applications ...........................................................................12-14

Assessments on insured banks................................................................. 27-28

A udit ........................................................................................................... 25, 32

Banks examined by, and submitting reports t o ........................................8-9

Borrowing power ............................................................................................. 27

Capital s to c k .......................................................................................................30

Consumer protection ............................................................................... 20-21

Coverage of deposit insurance................................................... xiv-xvi, 29-31

Delegation of authority ............................................................................... 133

Deposit insurance disbursements ...............................................3-6, 200-202

Deposit insurance fund (surplus) .......................................................... 27-32

Directors (members of the Board) .......................................................... v, 24

D ivisions...................................................................................................... iv, 25

Employees ......................................................................................... 24-25, 133

Examination of banks..................................................................................9-12

Fellowships awarded.........................................................................................24

Financial statements, 1975 ...................................................................... 26-29

Income and expenses, 1933-1975 .......................................................... 28-29

Insured banks requiring disbursements by. See Banks in 

financial difficulties.

Liquidation activities ....................................................................................4-6

Loans to, and purchase of assets from , insured banks.................................3

Losses incurred, 1934-1975 ...............................................................4-7, 203

Methods of protecting depositors................................................................... 3

Office of Bank Customer Affairs ................................................................. 21

Office of Corporate Planning ........................................................................ 25

Officials ................................................................................................................v

O rganization.......................................................................................................iv

Payments to insured depositors .................................................3-8, 198-203

Problem banks ..................................................................................................19

Receiver, appointment a s ................................................................................. 4

Recoveries ............................................................................................. 5, 7, 203

Regions................................................................................................................vi

Regulation of bank se cu ritie s.................................................19-20, 129-131

Regulation of interest rates...........................................................................129

Reports from banks ..................................................................................22-23

Reports of changes in bank o w n e rsh ip ........................................................21

Research.......................................................................................................22-24

Reserve for losses on assets acquired......................................................26-29

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Rules and regulations...........................................................................131-133

Sources and application of funds ................................................................. 28

Supervisory activities ................................................................................. 8-24

Surveys during 1975 .................................................................................. 22-23

Training programs............................................................................................. 22

Working Papers completed in 1 9 7 5 ........................................................ 23-24

Federal Flood Disaster A ct ....................................................................................133

Federal Home Loan Bank Board ...........................................................................129

Federal legislation, 1975 ............................................................................... 129-131

Federal Reserve authorities ................ xiv, 5, 8 , 9, 12, 14, 19, 27, 129-133, 181

Federal Reserve member banks. See Class of bank, banking data presented by.

Franklin National B a n k ....................................................................................5-6, 27

Freedom of Inform ation Act-Privacy A ct .......................................................... 132

General Accounting O ffic e ..................................................................................... 32

Home Mortgage Disclosure A ct of 1975 ...............................................................129

Income of F D IC .................................................................................................... 27-30

Income of insured commercial banks:

Amounts of principal components:

Annually, 1967-1975 ...................................................................... 182-183

By class of bank, 1975 .................................................................... 185-186

By size of bank, 1975 ...................................................................... 187-188

Classification of income data .............................................................179-181

Developments in 1975 .............................................................................xii-xiii

Ratios of income items:

Annually, 1967-1975 ............................................................................... 184

By size of bank, 1975 ...................................................................... 189-190

Sources of d a ta ............................................................................................... 181

Income of insured mutual savings banks:

Amounts of principal components,1971-1975 .............................. 191-192

Developments in 1975 .......................................................................... xiii-xiv

Ratios of income and expense items,1971-1975 ............................ 193-194

Sources of d a ta ............................................................................................... 181

Insolvent banks. See Banks in financial difficulties.

Insurance status, banks classified by:

Assets and liabilities of, June 30, 1975, and December 31, 1975. 159-168

Changes in number of, 1975 ............................................................... 138-139

Class of bank and size ....................................................................................151

Income of insured commercial b a n k s ...............................................185-186

Number of banking offices, by State, December 31, 1975 .......... 142-150

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:

Maximum rates on deposits ........................................................................ 129

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Paid on d e p o sits....................................................................................184, 194

Payment on Individual Retirement A c c o u n ts ..........................................132

Payment by insured banks in North D a k o ta ............................................ 132

Surveys of:

Mortgage lending activity and ra te s .......................................................... 23

Rates charged by b a n ks............................................................................... 23

Rates paid by banks...................................................................................... 23

Investments. See Assets, liabilities, and capital of banks; Assets and 

liabilities of FDIC; Banks in financial difficulties.

Legislation relating to deposit insurance and banking:

Federal, enacted in 1975 .................................................................... 129-131

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 .................................................................................... 4, 7, 28-30, 203

On loans, reserves for. See Valuation reserves.

Provision for, in insured banks.. .181, 182, 184, 185, 187, 189, 191, 193 

Mergers. See Absorptions.

Methods of tabulating banking data. See Banking data, classification of.

Mortgage lending by insured commercial banks, survey o f .................................23

Municipal Securities Rulemaking B o a rd ...............................................................130

Mutual savings banks. See Assets, liabilities, and capital of banks;

Deposits; Income of insured banks; Number of banks and branches.

National banks. See Class of bank, banking data presented by.

National Commission on Electronic Fund Transfers ........................................129

New banks, 1975 ............................................................................... xi, 138, 140-141

New York City obligations held by insured 

nonmember banks, survey of ............................................................................... 23

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, 1975, and

December 31, 19 7 5 .......................................................... 138, 162, 166

By insurance status, type of bank, number of branches, and

State, December 31, 1975 ........................................................ 142-150

By State and deposit size of bank ..........................................152-156

By supervisory status and deposit s iz e ............................................ 151

Changes during 1975 .............................................................xi, 138-141

Branches:

By insurance status and type of bank, December 31, 1975 . . . .139 

By insurance status, type of bank, and State, December 31,

1975 ........................................................................................... 142-150

Changes during 1975 ................................................................. 139-141

Of foreign banks ....................................................................................xi

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Insured commercial banks:

December call dates, 1967-1975 .......................................................... 183

Distributed by capital ratios and distribution of assets and

deposits, December 31, 1975 ...................................................... 176-178

Insured mutual savings banks:

December call dates, 1971-1975 .......................................................... 192

Noninsured banks by State, December 31, 1975 .......................... 142-150

U nit banks, by insurance status and State, December 31, 1975 . . 142-150 

Obligations of banks. See Assets, liabilities, and capital of banks.

Officers of insured banks. See Employees.

Officials of F D IC ........................................................................................................... v

Operating banks. See Number of banks and branches.

Palmer First National Bank and Trust Company ...............................................7-8

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 1974 ................................................... 20

Receivership, insured banks placed in. See Banks in financial difficulties. 

Recoveries:

By banks on assets charged off. See Income of insured commercial 

banks; Income of insured mutual savings banks.

By FDIC on disbursements. See Banks in financial difficulties.

Regions, F D IC ..............................................................................................................vi

Removal proceedings..................................................................................................18

Reports from b a n ks......................................................................19, 22-23, 130-131

Reserves:

Of FDIC, for losses on assets acquired ................................................. 26-27

Of insured banks for losses on assets. See Valuation reserves.

With Federal Reserve Banks. See Assets, liabilities, and capital of 

banks.

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..................................................................................129

Savings and time deposits. See also Deposits ....................... xii, xv, xvi, 129,132

Securities. See Assets, liabilities, and capital of banks; Assets and liabilities of 

FDIC; Banks in financial difficulties.

Securities Acts Amendments of 1975 ................................................. 20, 129-131

Securities and Exchange Commission...............................................19-20, 129-131

Securities, bank, regulation o f ...........................................................................19-20

Securities Exchange Act of 1934 ......................................................19-20, 129-131

Security, b a n k .......................................................................................................21-22

Selective Withdrawal Program ...................................................................... 9, 11-12

Size of bank, data for banks classified by amount of deposits:

Assets and liabilities, percentages of, insured banks, 1975 .......... 174-175

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Banks requiring disbursements by FDIC, 1934-1975 ............................201

Income of insured commercial banks, 1975 ................................... 187-188

Income ratios of insured commercial banks, 1975 ....................... 189-190

Number and deposits of all banks...............................................................151

Number and deposits of all commercial banks,

by S ta te ................................................................................................152-156

Number of employees of insured commercial banks, 1975 ...................188

Number of insured commercial banks, grouped by ratios of selected

items to assets and deposits, December 31, 1975 ....................... 176-178

Southeast Banking Corporation o f Miami .......................................................... 7-8

State banking a u th o ritie s................................................... 4, 9, 11-12, 15,132-133

State, banking data classified by:

Changes in commercial banks and branches, 1975 ....................... 140-141

Disbursements, deposits, and depositors in insured banks requiring

disbursements by FDIC, 1934-1975 ............................................ 201-202

Number and deposits of commercial

banks, by deposit size of b a n k ........................................................152-156

Number of banks and branches, by class of bank and type of office,

December 31, 1975 ........................................................................... 142-150

Percentage of banks insured, December 31, 1975 .......................... 142-150

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 ........................................................................ 8-9, 10

Suspension proceedings............................................................................................. 18

Suspensions. See Banks in financial difficulties.

Taxes paid by insured banks. See Income of insured commercial banks;

Income of insured mutual savings banks.

Terminations of insurance for unsafe and unsound p ractices..............15-16, 17

Trust assets of insured commercial banks, survey of .......................................... 23

Truth in Lending A c t ..................................................................................................20

Unit banks, by insurance status and State, December 31, 1975 ............ 142-150

Valuation reserves. See also Assets, liabilities, and capital of banks:

Amounts held, June 30, 1975, and December 31, 1975 .............. 161, 166

Amounts held, December call dates, 1965, 1971-1975 ..........................171

Violations of law or regulations, banks charged w it h ...................................14-18

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