ANNUAL REPORT OF THE

FEDERAL DEPOSIT INSURANCE CORPORATION

1977

v.

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Federal Reserve Bank of St. Louis
Ill

LE T T E R OF T R A N S M IT T A L

FEDERAL DEPOSIT INSURANCE CORPORATION

Washington, D.C., August 15, 1978

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

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

submit its annual report for the calendar year 1977. This report is a reprint of 

the report issued on March 1 expanded to include bank merger decisions, 

statistical tables, and other updated information pertinent to the operations of 

the Corporation.

Very truly yours,

George A. LeMaistre 

Chairman

THE PRESIDENT OF THE SENATE

THE SPEAKER OF THE HOUSE OF REPRESENTATIVES

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IV

FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION

BOARD OF DIRECTORS

Chairman.............................................................................. George A. LeMaistre

Director...................................................................................................... Vacant

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

OFFICIALS

Deputy to the Chairman . . . . ............................................Lewis G. Odom, Jr.

Counsel to the Chairman.................................................... C.F. Muckenfuss, III

Special Assistant to the Chairman.................................Sherwin R. Koopmans

Special Assistant to the Chairman...................................William A. Longbrake

Special Assistant to the Chairman......................................... Leonard Lapidus

Assistant to the Chairman..............................................Alfred H. Teichler, Jr.

Assistant to the Director

(Comptroller of the Currency)............................................Joseph M. Ream

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

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

General Counsel............................................................................ Miles A. Cobb

Acting Controller............................................................. William A. Longbrake

Chief, Division of Liquidation.................................................... George W. Hill

Director, Division of Management Systems

and Financial Statistics.......................................................Robert P. Rogers

Acting Director, Research Division......................................... Gary G. Gilbert

Director, Office of Corporate Planning..........................Stanley C. Silverberg

Director, Office of Corporate Audits.................................Robert D. Hoffman

Acting Director, Office of Consumer Affairs

and Civil Rights....................................................................Thomas C. O'Neil

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

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

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

Assistant to the Board............................................................. Sydney S. Sterns

Information Officer................................................................. Harriett S. Scholl

December 31, 1977

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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

Edwin B. Burr 

60 State Street, 17th Floor 

Boston, Massachusetts 02109 

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 

Kansas City

Robert V. Shumway 

2345 Grand Avenue, Suite 1500 

Kansas City, Missouri 64108 

Madison

Bernard J. McKeon 

1 South Pinckney Street, Room 813 

Madison, Wisconsin 53703

Memphis

Roy E. Jackson

1 Commerce Square, Suite 1800 

Memphis, Tennessee 38103 

Minneapolis

Anthony S. Scalzi

730 Second Avenue South, Suite 266 

Minneapolis, Minnesota 55402 

New York

Claude C. Phillippe 

345 Park Avenue, 21st Floor 

New York, New York 10022 

Omaha

Burton L. Blasingame 

1700 Farnam Street, Suite 1200 

Omaha, Nebraska 68102 

Philadelphia

Frank T. Locki

5 Penn Center Plaza, Suite 2901 

Philadelphia, Pennsylvania 19103 

Richmond

John Stathos

908 E. Main Street, Suite 435 

Richmond, Virginia 23219 

San Francisco

Charles E. Doster

44 Montgomery Street, Suite 3600 

San Francisco, California 94104

December 31, 1977

FEDERAL DEPOSIT INSURANCE CORPORATION 

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

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Federal Reserve Bank of St. Louis
VII

CONTENTS

Chairman's statement............................................................... ................... xi

PART ONE

OPERATIONS OF THE CORPORATION

Promoting sound banking............................................................................ 3

Protecting depositors..................................................................................... 18

Enforcing consumer legislation................................................................... 25

Enforcing investor legislation...................................................................... 27

Administration of the Corporation............................................................. 28

Finances of the Corporation........................................................................ 31

PART TWO

ENFORCEMENT PROCEEDINGS

Actions to terminate insured status............................................................. 43

Cease-and-desist actions................................................................................. 43

PART THREE

MERGER DECISIONS OF THE CORPORATION

Bank absorptions approved by the Corporation....................................... 53

Bank absorptions denied by the Corporation........................................... 113

PART FOUR

REGULATIONS AND LEGISLATION

Legislation — 1977 ....................................................................................... 123

Rules and regulations................................................................................... 124

PART FIVE

STATISTICS OF BANKS AND DEPOSIT INSURANCE

Number of banks and branches.................................................................... 130

Assets and liabilities of banks...................................................................... 151

Income of insured banks.............................................................................. 175

Banks closed because of financial difficulties;

FDIC income, disbursements, and losses................................................ 191

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VIII

TABLES

NUMBER OF BANKS AND BRANCHES:

Explanatory n o te .............................................................................................................. 130

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

States (States and other areas) during 1977 ................................................... 132

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

(States and other areas) during 1977, by S ta te .............................................. 134

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

December 31, 1977

Banks grouped by insurance status and class o f bank, and by State or

area and type o f office .................................................................................. 136

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

States (States and other areas), December 31, 1977

Banks grouped by class and asset s iz e ............... ........................................ 145

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

(States and other areas), December 31, 1977

Banks grouped by asset size and State........................................................ 146

ASSETS AND LIABILITIES OF BANKS:

Explanatory n o te .............................................................................................................. 151

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

other areas), June 30, 1977

Banks grouped by insurance status and class o f b a n k ............................... 153

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

other areas), December 31, 1977

Banks grouped by insurance status and class o f b a n k ............................... 157

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

and other areas), June 30, 1977, and December 31, 1977

Banks grouped by insurance status............................................................. 161

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

and other areas), December call dates, 1972-1977 ......................................... 163

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

offices), United States and other areas, 1974-1977......................................... 166

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

(States and other areas), December call dates, 1972-1977 ............................ 168

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

banks operating throughout 1977 in the United States (States and other

areas), December 31, 1977

Banks grouped by amount o f assets............................................................ 170

113. Percentages of assets and liabilities of insured mutual savings banks operating

throughout 1977 in the United States (States and other areas), December 31,

1977

Banks grouped by amount o f assets............................................................ 171

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

other areas), December 31, 1977

Banks grouped according to amount o f assets and by ratios o f selected

items to assets or deposits............................................................................. 172

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INCOME OF INSURED BANKS:

Explanatory n o te ................................................................................................... .. 175

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

areas), 1972-1977 .............................................................................................. 178

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

and other areas), 1972-1977 ............................................................................ 180

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

areas), 1977

Banks grouped by class o f bank .................................................................. 181

118. Income of insured commercial banks operating throughout 1977 in the

United States (States and other areas)

Banks grouped by amount o f assets.............................................................. 183

119. Ratios of income of insured commercial banks operating throughout 1977 in

the United States (States and other areas)

Banks grouped by amount o f assets. ........................................................... 185

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

other areas), 1972-1977 ......................................................................................... 187

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

and other areas), 1972-1977 ............................................................................ 189

BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES;

FDIC INCOME, DISBURSEMENTS, AND LOSSES:

Explanatory n o te .............................................................................................................. 191

122. Number and deposits of banks closed because of financial difficulties, 1934-

1977..................................................................................................................... 193

123. Insured banks requiring disbursements by the Federal Deposit Insurance

Corporation during 1977 .................................................................................. 194

124. Depositors, deposits, and disbursements in failed banks requiring disbursements by the Federal Deposit Insurance Corporation, 1934-1977

Banks grouped by class o f bankf year o f deposit payoff or deposit

assump tion, amount o f deposits, and State................................................ 195

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

principal disbursements for protection of depositors, 1934-1977 ............... 198

126. Analysis of disbursements, recoveries, and losses in deposit insurance transactions, January 1, 1934-December 31, 1977 ................................................ 199

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

beginning of operations, September 11, 1933, to December 31, 1977 .... 200

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

Federal Deposit Insurance Corporation, 1934-1977 ...................................... 201

129. Insured deposits and the deposit insurance fund, 1934-1977 ............................ 202

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B A C K G R O U N D

The Federal Deposit Insurance Corporation came into being during the economic and banking crises of the early 1930s, when thousands of banks were forced to close their doors. For over a century,

it had proved impossible to overcome the impact of bank failures on

noteholders and depositors. A number of States had tried various

forms o f insurance or guaranty plans, some w ith fair success, but all

of these had become inoperative by 1933. While during the period

1886-1933 numerous attempts were made to provide insurance protection to bank depositors on a national rather than statewide basis,

it took the severe depression of the 1930s to convince the people of

the nation that positive measures were required to eliminate the disastrous losses associated w ith bank failures.

The Federal Deposit Insurance Corporation was created by the

Banking Act of 1933 to protect depositors in the nation's banks, to

help maintain confidence in the banking system, and to promote

safe and sound banking practices. The Corporation accomplishes

these purposes through a program of Federal deposit insurance and

through the regulation and supervision at the Federal level of the

more than 9,000 FDIC-insured State-chartered banks that are not

members o f the Federal Reserve System.

Incorporated banks and trust companies that are engaged in the

business of receiving deposits may participate in Federal deposit insurance. This insurance is mandatory for national banks and State

bank members of the Federal Reserve System. Of the 15,207 banks

in operation in the United States at the end o f 1977, including

commercial banks and mutual savings banks, about 97 percent were

insured by the FDIC.

Each depositor in an insured bank is protected by Federal deposit insurance on the aggregate o f all deposits held in the same

right and capacity up to the maximum lim it provided by the Federal

Deposit Insurance Act. The maximum was $2,500 when Federal

deposit insurance became effective on January 1, 1934. Over the

44-year life o f the deposit insurance program, the amount has been

increased several times, w ith the most recent increase becoming effective on November 27, 1974, when the general lim it was raised to

$40,000.

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XI

CHAI RMAN'S STATEMENT

During 1977, there was a general improvement in the condition of the banking 

industry. Bank earnings were up from

1976 levels and bank loan losses declined. 

Only 6 banks failed in 1977 compared to 

16 in 1976 and 13 in 1975. Another reflection of the general improvement was a 

slight decline in the number of banks on 

the FDIC's list of problem banks.

In response to dramatic changes in the 

banking industry and to the economic d ifficulties that have occurred in recent years, 

the Corporation continued its efforts to 

supervise banks more effectively by improving examination and supervisory procedures. One improvement involved the 

adoption, after several years of experimentation and testing, of a computerized financial data analysis system. This system is 

designed to aid the examination process by 

monitoring banks between examinations 

and by identifying possible adverse trends 

or developing problems in a particular 

bank as well as in the banking industry in 

general. The Corporation continued the 

rigorous use of cease-and-desist orders begun in 1976 to achieve correction by banks 

of certain conditions that endanger a 

bank's safety and soundness. In 1977, 52 

final orders were issued under section 8 of 

the Federal Deposit Insurance Act; 29 such 

orders were issued in 1976, but from 

1971-75 the number of such orders issued 

per year was 10 or fewer.

Meetings between Corporation examiners and bank boards of directors following the completion of an examination were 

made standard policy. It was also decided 

that a bank's directors should be notified 

when the Corporation recommends that 

their bank be assigned to the "problem" 

list. Finally, the Corporation embarked 

upon a major internal review of bank supervisory policies and procedures.

Several other matters worthy of note 

involved the Corporation during 1977. In 

response to the significant increase in the 

volume and complexity of assets being liquidated by the Corporation, a comprehensive review of liquidation practices, policies, and procedures was undertaken.

In the area of consumer and bank customer protection, the Corporation settled 

a suit in May by agreeing to institute more 

vigorous enforcement of the Fair Housing 

Act of 1968. A t the close of the year, the 

Corporation was reviewing comments on 

its proposed fair housing recordkeeping 

regulation. In September, the FDIC joined 

the Federal Home Loan Bank Board in a 

study of Home Mortgage Disclosure Act 

data. A t the close of the year, the Corporation was reviewing comments submitted in 

response to the proposed truth-in-lending 

guidelines and was participating in an interagency task force on the Community Reinvestment Act.

Toward the end of the year, the FDIC 

was engaged in responding to congressional 

requests for information on bank lending 

to insiders and officials of other banks and 

overdraft practices to determine the extent 

of preferential treatment or other abuses.

Six insured banks, ranging in deposit 

size from $1.8 million to $170 million, required Corporation assistance in 1977. 

This represented a return to the average 

over a number of years of about five bank 

failures per year. In all six banks, a purchase and assumption transaction was 

arranged.

The Corporation's largest liquidation 

continues to be Franklin National Bank, 

New York, New York. A milestone was 

reached in this liquidation on October 7,

1977, when the FDIC paid the remaining 

indebtedness incurred when it assumed 

Franklin's outstanding "w indow " loan due 

to the Federal Reserve Bank of New York 

following the closing of Franklin National 

Bank. The indebtedness, which originally 

amounted to $1.7 billion, had been reduced to $608 million when the FDIC 

made the final payment. Corporation projections indicate that there will be sufficient collections from the remaining assets 

to recover all of its disbursements. The outcome could be altered, however, by several 

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XII FEDERAL DEPOSIT INSURANCE CORPORATION

cisely at this time, including the length of 

the receivership, which is now estimated at 

an additional 8 to 12 years; future economic conditions; the pace of receivership collections; and the outcome of certain major 

pending litigations.

During 1977, the dollar amount of assets administered by the Division of Liquidation declined to about $2.1 billion from 

$2.6 billion at the close of 1976. Substantial collections during 1977 exceeded the 

small amount of new assets placed in liquidation. Although the FDIC acquired fewer 

assets as the result of fewer distressed bank 

situations in 1977, the experience gained 

over the period 1973-76 clearly indicated 

that the FDIC should be prepared to handle a large volume of bank closings and 

have the capability to administer a large 

volume of diverse and sometimes poor 

quality assets. Recognizing this and because of a desire to enhance the efficiency 

of the liquidation function generally, the 

Board of Directors commissioned a review 

of the major aspects of liquidation activities. In August 1977, a task force was 

established for this purpose which consists 

of personnel from various offices and divisions within the Corporation as well as an 

outside consulting firm. The task force is 

scheduled to submit recommendations 

during 1978.

Following a 2-Vi year period when the 

FDIC's list of problem banks more than 

doubled, 1977 was a year of stabilization 

and trend reversal. The list, which includes 

national and State member banks as well as 

nonmember banks, declined slightly during the year to 368 banks, a net reduction 

of 11 from year-end 1976.

While a bank is generally placed on the 

problem list because of unsound loans, mediocre management, or insider abuses, 

there is a direct relation between the condition of the economy and the number of 

banks on the list. When there is an economic decline, banks holding large amounts of 

low quality loans tend to get into financial 

difficulties. Because of delays due to the 

scheduling of examinations, the time to

conduct an examination, and the period 

required to prepare the Report of Examination and to review it, there is a considerable time lag between the beginning of an 

economic upturn and a declining trend in 

the number of problem banks. The number 

of banks on the problem list peaked in 

November 1976, but did not begin to decline until June 1977. Continued economic improvements during 1977 should lead 

to a further decline in the number of problem banks during 1978. The decline may 

be gradual, however, due to the nature and 

severity of problems related to real-estaterelated and other loans affected by the 

1973-75 recession which still remain in 

banks' loan portfolios.

In 1977, the Corporation continued its 

policy of examining insured nonmember 

banks in accordance with changes initiated 

in 1976 relating to the priorities, frequency, and scope of examinations. The revised 

system recognizes that there are differences among banks of various sizes and 

thus, relatively more time is allocated to 

the examination of larger banks and banks 

that require more attention.

Recognizing the need to enhance director awareness of and involvement in the 

Corporation's supervisory efforts, in 1977 

the Corporation instructed examiners to 

meet more frequently with bank directors. 

The examiner-in-charge will now meet 

with either the board of directors or an 

appropriate committee of the board after 

each full-scope examination. The Regional 

Director or a member of his staff will participate in such meetings where the bank 

has been or may be formally designated as 

a problem bank.

Also during 1977, the Corporation began an experimental program in certain 

FDIC Regions of notifying bank directors 

when their bank's condition was such that 

problem bank designation was being recommended. Notification seemed well received by bank directors and no significant difficulties were noted. It was decided to extend the program to all regions 

and to adopt notification procedures as a

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CHAIR M AN'S STATEMENT XIII

general requirement in all insured nonmember bank problem situations effective January 1, 1978.

In August, the Board of Directors commissioned a study to investigate the relationship between State and Federal regulation of banks. The study will focus on possible reforms in the current statutory and 

regulatory structure, with a view toward 

reducing or eliminating unnecessary overlap and duplication, and will measure the 

effectiveness of State and Federal authorities in meeting regulatory goals. The study 

will consider the costs and benefits of the 

present system of double supervision of 

State-chartered banks and the interaction 

between Federal and State regulatory authorities.

In the fall of 1977, the Senate Committee on Banking, Housing and Urban Affairs 

and the House Committee on Banking, 

Finance and Urban Affairs requested the 

Corporation to provide information about 

the lending and overdraft practices of 

banks to facilitate congressional deliberations on the need for additional banking 

legislation. As a result of these requests, 

the FDIC conducted four surveys to determine, among other things, the extent of 

preferential practices involved in bank 

lending and overdraft extensions. One of 

these surveys was still being processed at 

year-end.

The results of the completed surveys 

indicated that relatively few State nonmember insured banks engage in financing 

loans to purchase bank stock to any significant degree. A substantial proportion of 

the surveyed banks, however, had extended loans to officers of other banks. 

While there were instances of loan terms 

that appeared preferential, the completed 

surveys did not indicate widespread abuse 

associated with loans to officers of other 

banks or loans secured by bank stock. The 

information obtained about overdrafts 

indicated that the dollar amount of overdrafts by bank officers, directors, stockholders, and their interests is small in relation to the aggregate amount of overdrafts 

of all bank customers.

The survey currently in process was 

conducted by the Federal Deposit Insurance Corporation, in cooperation with the 

other Federal banking agencies. All insured 

commercial banks were asked for information on loans secured by bank stock, insider loans, loans to insiders of other 

banks, and overdrafts. The survey results 

are to be used by the committees in assessing the need for legislation to control 

these forms of bank lending. The Corporation expects that the survey results will assist it in carrying out its supervisory responsibilities.

On November 1, 1977, the Honorable 

Fernand J. St Germain, Chairman, House 

Subcommittee on Financial Institutions 

Supervision, Regulation and Insurance, requested the Corporation to review a sample of the most recent examination reports 

of State nonmember banks for information on loans to bank insiders, overdrafts, 

loans to insiders of correspondent banks, 

loans secured by bank stock, and violations 

of law and supervisory agreements. This review was conducted in the Corporation's 

Regional Offices and the results were transmitted to Congressman St Germain at the 

beginning of 1978.

During 1977, the FDIC increased its efforts to enforce bank customer oriented 

laws and regulations. These efforts are an 

outgrowth of programs that were previously initiated by the Corporation and a 

response on the part of the Board of Directors to the increasing responsibilities 

placed upon the regulatory agencies by 

Federal consumer protection statutes.

In May 1977, the Corporation reached 

an out-of-court settlement in a lawsuit, 

initiated by a coalition of civil rights and 

consumer advocate groups, that contended 

that the FDIC, the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal 

Home Loan Bank Board were not enforcing the Fair Housing Act of 1968. As part 

of the settlement, the Corporation agreed

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XIV FEDERAL DEPOSIT INSURANCE CORPORATION

to develop a data collection and analysis 

system to monitor bank compliance with 

statutory prohibitions against discrimination in housing-related loans based on age, 

race, color, religion, sex, marital status, 

and national origin. A pilot survey of approximately 300 banks, conducted in cooperation with the Office of the Comptroller of the Currency, was completed in 

mid-February 1977. The results of this survey have been instrumental in designing a 

data collection and analysis system. The 

settlement agreement also required the 

Corporation to hire a civil rights specialist 

and to improve examiner training in the 

area of civil rights. Proposed regulations, 

which would impose certain recordkeeping 

requirements and require a fair housing 

poster in the lobby of each insured State 

nonmember banking office, were issued 

for public comment in October 1977.

Concern in Congress over the availability of financing for home mortgages in 

urban areas led to the passage of the Home 

Mortgage Disclosure Act of 1975. In September 1977, the FDIC and the Federal 

Home Loan Bank Board decided to fund a 

study of the Home Mortgage Disclosure 

Act. This study is intended to analyze the 

usefulness and accuracy of information 

banks must generate as a result of that act. 

The FDIC-FHLBB study, among other 

things, is designed to assess the accuracy 

and usefulness of the current reports, to 

assess the need for revisions in the act, and 

to devise cost-effective means of centralized collection and dissemination of these 

data and of enforcement of the provisions 

of the Home Mortgage Disclosure Act.

In October 1977, the Community Reinvestment Act was enacted. It requires the 

bank regulatory agencies and the Federal 

Home Loan Bank Board to consider a 

depository institution's record of meeting 

the credit needs of communities it serves, 

in c lu d in g low- and moderate-income 

neighborhoods, during the course of regular examinations and in reviewing applications for new charters, deposit insurance, 

branches, and mergers. The agencies are required to issue final regulations implementing this act no later than November 

1978. A joint interagency task force has 

been convened to work on developing 

those regulations. Hearings are to be held 

in Washington, D.C., Atlanta, Dallas, San 

Francisco, and Chicago in the spring of

1978.

The Corporation also is attempting to 

improve the enforcement of the truth-inlending laws and regulations and is giving 

more attention to the technical aspects of 

Regulation Z which implements the requirements of the Truth in Lending Act. In 

addition to staff studies designed to devise 

means to overcome possible deficiencies, 

the depository regulatory agencies have 

jo in tly issued proposed enforcement 

guidelines for comment which, if adopted, 

will help to ensure consistently applied enforcement standards for all depository 

institutions.

Cl *' o^/Kcuitu,

George A. LeMaistre 

Chairman

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. ... _ N

OPERATIONS OF THE CORPORATION

PART ONE

v J

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3

The FDIC has some supervisory authority with respect to all insured banks; however, the agency's primary supervisory 

responsibilities relate to insured Statechartered commercial banks that are not 

members of the Federal Reserve System 

and FDIC-insured mutual savings banks. 

Of the three Federal bank supervisory 

agencies, the FDIC has primary supervisory responsibility for the largest number 

of banks. On December 31, 1977, a total 

of 14,735 insured commercial banks and 

mutual savings banks were in operation in 

the United States, with assets amounting 

to $1,270 billion; nonmember insured 

banks accounted for 59,6 percent of the 

number of banks and 30.5 percent of 

assets of banks on that date. For mutual 

savings banks, over 89 percent of the 

total assets were held in the 323 mutual 

savings banks insured by the FDIC.

Examinations. In 1977, the Corporation continued its policy of examining 

insured nonmember banks in accordance 

with General Memorandum No. 1. General 

Memorandum No. 1, which was implemented in 1976 and slightly revised in 

1977, sets forth the policy on examination 

priorities, frequency, and scope and defines areas where the FDIC Regional Directors may use discretion while still maintaining a uniformity of approach. General 

Memorandum No. 1 defines two types of 

examinations: the modified examination, 

which emphasizes management policies 

and performance, and the full-scale examination, which is designed to make full use 

of the bank's own reporting capabilities 

and is tailored to the size and complexity 

of the bank.

Top priority in examination is given to 

banks with known supervisory or financial 

problems. These banks receive a full-scale 

examination by the FDIC at least once 

every 12 months, with follow-up examinations or visitations as deemed necessary. 

Commercial banks with assets of $100 

million or more and mutual savings banks

PROMOTING SOUND BANKING with assets of $500 million or more that do 

not present supervisory or financial problems receive a full-scale examination during each 18-month period, with no more 

than 24 months between examinations. A 

modified examination may be alternated 

with a full-scale examination for commercial banks with assets of less than $100 

million and for mutual savings banks with 

assets of less than $500 million that do not 

present supervisory or financial problems, 

and that meet criteria indicating satisfactory management, adequate capital, acceptable fidelity coverage, good earnings, 

and adequate internal routine and controls. Such banks are examined once in 

each 18-month period, again with no more 

than 24 months between examinations.

Other special investigations are conducted by the FDIC in connection with 

applications for Federal deposit insurance, 

mergers, establishment of branches, and 

other actions that require the prior approval of the Corporation.

Meetings with directors and trustees. To 

increase the effectiveness of director participation in the supervisory process, in 

1977 examiners were instructed to meet 

more frequently with bank directors (trustees in the case of mutual savings banks). 

General Memorandum No. 2 sets the criteria for such meetings. The examiner-incharge will meet with either the board of 

directors or an appropriate committee of 

the board at each full-scale examination, 

and more often if necessary. The Regional 

Director or a member of his staff will participate in meetings with the bank's board 

or committee if the bank has been or may 

be formally designated as a problem bank. 

Beginning in 1978, a Regional Directorwill 

formally notify bank directors when he 

recommends that their bank be placed on 

the FDIC's problem bank list.

Divided Examination Program. As part 

of the Corporation's continuing effort to 

concentrate supervisory resources in priority areas, during the year the Corporation 

entered into a Divided Examination Program with the State of Georgia. Under the

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Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION

SUPERVISORY C LASSES OF B A N K S IN THE

U N ITED STATES, D E C E M B E R 31, 1977

C om m ercia l B anks and M utu a l S avings Banks

NUMBER OF BANKS

ASSETS OF BANKS

Not Insured by 

FDIC 4.1%

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Federal Reserve Bank of St. Louis
PROMOTING SOUND BANKING 5

program, problem banks, other banks in 

need of special supervision, and banks with 

assets of $100 million or more ("pool" 

banks) are examined by both the FDIC and 

the State supervisor at least once each year. 

A b o u t h a lf of the remaining banks 

("other" banks) are examined by the State 

with the remainder examined by the FDIC. 

The supervisors will alternate examination 

of these banks annually. Either supervisory 

agency, upon completion of examination 

of that agency's portion of "other" banks, 

may examine others for which it is not primarily responsible for the year and also 

may add banks to the group of "pool" 

banks at any time. Either supervisor has

the right to modify or cancel the divided 

examination arrangement without prior 

notice.

These arrangements for examining and 

follow-up surveillance of banks with supervisory or financial problems parallel the 

requirements of General Memorandum 

No. 1. While the examination schedule for 

the "other" banks— one full examination 

by the Corporation every 2 years— is a 

departure from the designated two examinations (one modified) every 3 years, with 

the utilization of State examination reports for "o ff years," the condition of 

these banks can be followed satisfactorily. 

It is anticipated that one or more States

Thousands

3 5 - - - - - - - - -

3 0 ■

BANKS (HEAD OFFICES) AND BRANCHES IN THE

UNITED STATES, 1957, 1967, 1977

Commercial Banks and M utual Savings Banks

Banks

Branches

25

20

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6 FEDERAL DEPOSIT INSURANCE CORPORATION

BANK EXAMINATION ACTIVITIES OF

THE FEDERAL DEPOSIT INSURANCE CORPORATION

IN 1976 AND 1977

Number

Activity

1977 1976

Field examinations and investigations-total.......................................... 27,502 29,713

Examinations of main offices............................................................... 7,473 8,037

Regular examinations of insured banks not members

of Federal Reserve S ystem ....................................................... 7,265 7,829

Re-examinations or o th e r............................................................... 181 187

Entrance examinations of operating noninsured banks............. 21 19

Special examinations...................................................................... 6 2

Examinations of departments and branches.................................... 8,739 9,691

Examinations of trust departments............................................... 1,425 1,491

Examinations of branches............................................................... 7,314 8,200

Investigations......................................................................................... 4,229 3,812

New bank investigations................................................................. 169 162

State banks members of Federal Reserve System.................. 9 16

Banks not members of Federal Reserve System..................... 160 146

New branch investigations............................................................... 931 952

Mergers and consolidations............................................................ 122 118

Miscellaneous investigations............................................................ 3,007 2,580

Compliance examinations.................................................................... 7,061 8,173

will be added to the Divided Examination 

Program in 1978.

Review of examination reports. Reports of Examination of national banks 

and State member banks, conducted by 

examiners of the Office of the Comptroller 

of the Currency and the various Federal 

Reserve Banks respectively, are reviewed at 

the Corporation's Washington Office on a 

regular basis. Reports of Examination of 

national and State member banks that are 

not of special supervisory concern and 

have total deposits of $100 million or more 

are reviewed annually; Reports of Examination of such banks with total deposits of 

less than $100 million are reviewed at least 

once every 3 years. For banks of special 

supervisory concern, regardless of size, the 

Reports of Examination are reviewed as 

soon as they are made available to the Corporation. Effective January 1, 1978, the 

review of Reports of Examination of national banks and State member banks will 

be performed in the various Regional Offices of the Corporation.

Bank holding company supervision. All 

bank holding company examinations are 

conducted by the Federal Reserve. Reports of Inspection or Reports of Visitation of bank holding companies with insured State nonmember bank affiliates are 

reviewed in the Corporation's Washington 

Office as the reports are made available to 

the Corporation. Reports on holding companies with only national and State member bank affiliates are provided for FDIC 

review upon request. In 1977, the Corporation reviewed 309 holding company reports.

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Federal Reserve Bank of St. Louis
PROMOTING SOUND BANKING 7

posed that bank holding company supervision could be improved if all of a holding 

company's subsidiaries were supervised by 

the same Federal agency. He suggested that 

each bank holding company and its subsidiaries be examined by the Federal banking 

agency having primary supervisory responsibility for the lead bank in the holding 

company. The Chairman has also recommended that the Federal Reserve should 

continue to determine permissible activities for holding companies and to approve 

formations and acquisitions, but should 

defer to the primary Federal supervisor on 

matters pertaining to the financial and 

managerial resources and future prospects 

of the affected banking affiliates.

Shared national credits. During the past

2 years, the Federal Deposit Insurance Corporation has participated with the Office 

of the Comptroller of the Currency and the 

Federal Reserve System in an annual review of shared national credits. Shared 

national credits are defined as those loans 

aggregating $20 million or more to one 

borrower that are participated in or shared 

by two or more banks. The review and classification of these credits is conducted 

independently of regular bank examinations and is the responsibility of specially 

selected Comptroller of the Currency or 

Federal Reserve and FDIC examiner teams 

assigned to the lead banks or agents for 

such credits. Ordinarily, shared national 

credits are reviewed and analyzed annually; however, banks involved may request that the review and analysis be made 

more often. The appraisal of the credit

BANK E X AM IN ATIO N S AN D INVESTIGATIONS

FEDERAL DEPOSIT INSURANCE CORPORATION, 1967-1977

Thousands

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8 FEDERAL DEPOSIT INSURANCE CORPORATION

assigned at the lead bank, including any 

substandard, doubtful, or loss classification or special mention, is applied to all 

participations or shares of those credits 

held by any national, State member, or 

State nonmember insured bank. The 

appraisal remains in effect until the next 

regular annual review unless changed in an 

interim review requested by an affected 

bank. A total of 168 State nonmember insured banks participated in shared national 

credits in 1977.

Examination of bank trust activities.

During the first quarter of 1977, a revised 

trust report of examination was placed in 

use. While the main concept of the examination has not been materially changed, 

greater emphasis is placed on the evaluation of policies, practices, and procedures 

through the use of questionnaire-type 

report pages and worksheet checklists. The 

new report was developed to cover various 

types of trust activities and designed to be 

flexible in its use, including special pages 

for registered transfer agents and a single 

examination page for some small and relatively inactive trust departments.

The Corporation's Board of Directors, 

on September 7, 1976, authorized the 

creation of 14 bank examiner trust specialists, and these positions were filled in early 

1977. The specialists are assigned to the 

regions in which the larger and more complicated trust departments are located.

Cease-and-desist orders. If the FDIC 

finds that an insured State nonmember 

bank has been conducting its business in an 

unsafe or unsound manner or has violated a 

law, rule or regulation, or any agreement 

with a condition imposed in writing by the 

FDIC, it may initiate a cease-and-desist 

proceeding pursuant to section 8 (b) of the 

Federal Deposit Insurance Act. The FDIC 

first attempts to achieve correction of the 

deficiencies by the bank through a consent 

cease-and-desist order. Bank management 

is given a proposed Notice of Charges detailing the objectionable practices and is 

also presented with a proposed Order to 

Cease and Desist which contains a program

for compliance. If, after a meeting with the 

bank and the appropriate State supervisory 

authority, the bank does not consent to 

comply with the proposed order, the Corporation will initiate formal proceedings 

by issuing a Notice of Charges. A hearing is 

held before an administrative law judge, 

where both the bank and the FDIC present 

evidence. The administrative law judge 

recommends an order to the Board of Directors of the Corporation, and subsequently the Corporation issues an order 

based upon an independent review of the 

entire case. The Corporation's order can be 

appealed to a Federal Circuit Court of 

Appeals. In 1977, there were no formal 

hearings under section 8(b).

The FDIC may also issue temporary 

cease-and-desist orders pursuant to section 

8(c) of the Federal Deposit Insurance Act 

after a determination that continuation of 

certain practices would cause substantial 

financial damage to the bank or prejudice 

the interests of its depositors. These summary orders take effect when they are 

served on the bank and remain in effect 

until completion of cease-and-desist proceedings pursuant to section 8(b).

During 1977, there were 45 section 8 

actions authorized by the Board of Directors which resulted in the issuance of 31 

final orders pursuant to section 8 (b) and 8 

temporary cease-and-desist orders pursuant to section 8(c). Six actions were still 

being negotiated with affected banks at the 

end of 1977. In addition, 13 final orders 

were issued during the year covering ceaseand-desist proceedings initiated during

1976. During 1977 the FDIC also brought 

an enforcement action in the appropriate 

United States District Court against one 

bank for violations of a section 8(b) order. 

Since first using the cease-and-desist power 

in 1971, the FDIC has issued 105 orders 

under section 8 (b) and 13 under section 

8(e).

Reasons for cease-and-desist orders.

Some of the unsafe or unsound banking 

practices that resulted in enforcement actions by the FDIC were:

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Federal Reserve Bank of St. Louis
PROMOTING SOUND BANKING 9

(1) inadequate capital in relation to the 

kind and quality of assets

(2) inadequate provisions for liquidity

(3) failure of the bank to diversify its 

portfolio resulting in a risk to capital

(4) extension of credit to insiders and 

affiliates of the bank who were not 

creditworthy, sometimes at a preferred rate

(5) weak and self-serving management

(6) hazardous lending practices involving 

extension of credit with inadequate 

documentation or for the purpose of 

speculation in real estate

(7) an excessive portfolio of poor quality 

loans in relation to capital

(8) failure to comply with consumer protection laws and regulations 

Termination of insurance. When the

FDIC determines that a bank has been conducting its affairs in an unsafe or unsound

manner and is in an unsafe or unsound financial condition, it may initiate terminatio n -o f-in s u ra n c e proceedings under 

section 8 (a) of the Federal Deposit Insurance Act. The FDIC advises the bank, and 

the primary State or Federal regulatory 

authority, of its findings and permits the 

bank up to 120 days to correct the deficiencies. If the deficiencies are not corrected, the FDIC may terminate the insured status of the bank after an administrative hearing and due deliberation. The 

depositors of the bank are then notified of 

the termination, but each deposit (less subsequent withdrawals) continues to be insured for 2 years.

From 1934 to 1977, action had been 

taken under section 8 (a) against a total of 

240 banks, and 236 cases had been closed 

at the end of 1977. In slightly less than 

one-half of the closed cases, corrections

CEASE-AND-DESIST ORDERS AND ACTIONS TO CORRECT 

SPECIFIC UNSAFE OR UNSOUND PRACTICES OR VIOLATIONS 

OF LAW OR REGULATIONS, 1976 AND 1977

1977 1976

Actions authorized by Board of D irectors............................ 45 41

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

Cease-and-desist orders outstanding at

beginning of y e a r-to ta l...................................................... 36 15

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

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

Cease-and-desist orders issued during

ye a r-to ta l............................................................................. 39 26

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

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

Cease-and-desist orders issued in actions

authorized in prior y e a r-to tal............................................ 13 3

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

Cease-and-desist orders term inated-total............................... 23 8

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

Section 8 (c ).......................................................................... 8 3

Cease-and-desist orders in force at end

of y e a r-to ta l........................................................................ 65 36

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

Section 8 (c).......................................................................... 2 2

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10 FEDERAL DEPOSIT INSURANCE CORPORATION

were made, and in most of the other closed 

cases, the banks were absorbed by other 

insured banks or ceased operations prior to 

the establishment of a date for deposit 

insurance termination. In 13 cases, insurance was terminated or the bank ceased 

operations following the fixing of a date 

for insurance termination.

A t the beginning of 1977, six termination-of-insurance proceedings were in 

progress. Administrative hearings were 

held in three cases. After the completion of 

a hearing against one bank, it was merged 

and the proceeding was terminated. The 

remaining two administrative proceedings 

were still pending at year-end. Of the three 

remaining section 8(a) proceedings pending at the beginning of 1977, one action 

was terminated after the bank consented 

to the issuance of a section 8(b) cease-anddesist order. One bank complied with the 

order of correction and the proceeding was 

terminated. The corrective period for the 

remaining bank was extended.

During 1977, the FDIC issued three 

Findings of Unsafe or Unsound Practices 

and Condition and Orders of Correction. 

After the issuance of these orders, one 

bank's financial condition improved sufficiently to terminate the proceeding. The 

other two proceedings were still pending, 

and as a result, five deposit insurance termination proceedings were pending at 

year-end 1977.

Removal of bank officers and directors. The FDIC may also, under section 

8(e) of the Federal Deposit Insurance Act, 

remove an officer, director, or other person participating in the management of an 

insured State nonmember bank if it determines that the person has violated a law, 

rule, regulation, or final cease-and-desist 

order; has engaged in unsafe or unsound 

banking practices; or has breached his fiduciary duty. The act must involve personal 

dishonesty and entail substantial financial 

damage to the bank, or seriously prejudice 

the interests of the bank's depositors. Such 

a person may be suspended pending the 

outcome of the removal proceeding in 

order to protect the bank and its depositors. During 1977, no removal proceedings were initiated.

Section 8(g) of the Federal Deposit 

Insurance Act authorizes the Corporation 

to suspend or remove officers, directors, 

and other persons participating in the affairs of insured State nonmember banks 

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

authority for suspending individuals was 

ruled unconstitutional by a three-judge 

Federal district court in 1976 (FeinbergM.

FDIC, 420 F. Supp. 109 (D.D.C. 1976)), 

and legislation was proposed to Congress in 

1977 to cure the constitutional defects 

found by the court. In addition, the Corporation has issued regulations to cover the 

deficiencies in the statute found by the 

court.

Problem banks. Problem status generally is accorded after analysis of the most 

recent examination report of a bank or 

consideration of other pertinent information. The FDIC's problem list includes 

national and State member banks as well as 

the nonmember banks it supervises. Both 

the Office of the Comptroller of the Currency and the Federal Reserve maintain 

special supervisory lists of banks they 

supervise; their lists contain some of the 

same banks as the FDIC's list, but they are 

not duplicative of each other. The FDIC's 

problem bank list is divided into three categories:

Serious Problem-Potential Payoff: An

Advanced serious problem situation 

with an estimated 50 percent chance 

or more of requiring financial assistance from the FDIC.

Serious Problem: A situation that 

threatens ultimately to involve the 

FDIC in a financial outlay unless 

drastic changes occur.

Other Problem: A situation wherein 

a bank contains significant weaknesses, but where the FDIC is less 

vulnerable. Such banks require 

more than ordinary concern and 

aggressive supervision.

After reaching a peak of 385 in November 1976, the number of problem

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Federal Reserve Bank of St. Louis
PROMOTING SOUND BANKING 11

banks had declined to 368 by year-end 

1977, representing about 2.5 percent of all 

insured banks. Banks do not usually remain on the problem list for very long; for 

example, at year-end 1977, 62 percent of 

the listed banks had been in problem status 

for 2 years or less and 86 percent for no 

longer than 3 years.

During 1977, 165 banks were added 

to the list and 176 banks were removed (4 

by actual failure). The net decrease of 11 

was represented by decreases of 12 in the 

Serious Problem-Potential Payoff and 8 in 

the Other Problem groups and an increase 

of 9 in the Serious Problem group. These 

changes represent an improvement over 

the dramatic increases in 1975 and the 

modest increases in 1976. During 1975 and

1976, most banks that were added to the 

problem list had loan portfolio weaknesses 

which could not be resolved quickly because of the nature of the types of credit 

involved.

Of the 368 banks on the problem list at 

year-end, 44 were affiliates of multi-bank

holding companies, while 52 were owned 

by one-bank holding companies. From a 

deposit-size standpoint, 298 problem 

banks had deposits less than $50 million, 

25 between $50 and $100 million, 31 between $100 and $500 million, 7 between 

$500 million and $1 billion, and 7 with $1 

billion or more.

There were no banks of over $750 million considered Serious Problem-Potential 

Payoff; 10 of the 12 banks in that category 

had deposits of less than $25 million. Analysis of the problem bank list since year-end

1973 indicates that about 31 percent of 

the banks that were included at onetime or 

another in the Serious Problem-Potential 

Payoff category ultimately did fail. An 

additional 11 percent were merged with 

other banks without financial assistance by 

the Corporation, 2 percent received financial assistance from the FDIC, and the 

remaining 56 percent received a less severe 

rating or were removed from problem status.

The closer supervision that is the

NUMBER OF PROBLEM BANKS, DECEMBER 31, 1976 AND 1977

1977 1976

NONMEMBER -----------------------------------------------------

Serious Problem-Potential P a y o ff................................ 10 19

Serious Problem ............................................................... 82 72

Other Problem .................................................................. 194 210

Total............................................................... 286 301

STATE MEMBER

Serious Problem-Potential P a y o ff................................ 1 1

Serious Problem ............................................................... 3 3

Other P roblem .................................................................. 18 15

Total............................................................... 22 19

NATIONAL

Serious Problem-Potential P a y o ff................................ 1 4

Serious P roblem ............................................................... 15 16

Other P roblem .................................................................. 44 39

Total.................................. ............................ 60 59

ALL PROBLEM BANKS

Serious Problem-Potential P a y o ff................................ 12 24

Serious Problem ............................................................... 100 91

Other Problem .................................................................. 256 264

Total............................................................... 368 379

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12 FEDERAL DEPOSIT INSURANCE CORPORATION

FDIC's policy with respect to problem 

banks includes, among other things, more 

frequent examinations and meetings with 

directors and management. In this connection, 376 regular examinations and 123 reexaminations of problem banks were conducted in 1977. Additionally, representatives of the Corporation met with the 

directors or management of problem banks 

on 793 occasions during 1977.

Integrated Monitoring System (IMS).

The IMS, a computerized analysis system 

for monitoring bank performance between 

examinations, was implemented nationwide on November 1, 1977. The system is 

based on data submitted by the banks in 

their Reports of Condition and Income. 

Although the IMS is not a substitute for 

the examination process, it enables the 

Corporation to identify with more accuracy banks, or particular aspects of a 

bank's operation, that especially merit 

closer supervisory attention; it promotes 

more efficient use of limited manpower 

resources, both in the actual examination 

itself and in the review process; and it 

should serve to alert the Corporation to the 

presence of a deteriorating situation before 

it assumes serious proportions and thereby 

facilitate a swifter response by the Corporation. As presently structured, the IMS is 

limited in its application to insured commercial State nonmember banks.

The IMS utilizes eight basic tests which 

measure a bank's capital adequacy, liquidity, profitability, and asset and liability 

mix and growth against a predetermined 

standard. If a bank fails one or more of the 

eight basic tests, additional data are provided to facilitate in-depth and detailed 

analysis of the apparent problem. Where 

analysis indicates a potential problem or 

deteriorating conditions, appropriate action is initiated, which could be an early 

examination, bank visitation, or other 

follow-up activity.

Loans to lesser developed countries.

The subject of increased private bank lending to lesser developed countries (LDCs) 

received a good deal of publicity during

1977. Concern was expressed over the 

spiraling debt burden of these countries 

and their ability to meet debt service requirements. Further, there was concern 

about the impact of LDC lending on the 

operations of domestic banks, the stability 

of the U.S. banking system, and the deposit insurance fund.

Based on the information the Corporation reviews as a matter of course, recent 

commitments to LDCs appear to pose no 

significant danger to the overall stability of 

the U.S. banking system. Only a few of the 

largest U.S. banks have substantial commitments to LDCs. These commitments 

generally have been made to the higher 

income, traditionally more creditworthy 

LDCs and are in a relatively liquid form. 

Notwithstanding the increased dollar volume of international loans, the ratio of 

losses on such credits has generally been 

less than that for domestic lending. These 

patterns appear essentially unchanged 

from 1975 experience, indicating that the 

vulnerability of U.S. banks to default on 

debt paym e n ts by LDCs has n o t w orsened

over the last year. While large current account deficits persist in several LDCs, adjustment processes such as monetary and 

fiscal restraint and multilateral debt restructuring to correct balance of payments 

deficits and shortages of foreign exchange 

reserves were begun in 1976 in many of 

these countries, reflecting a sincere desire 

to stabilize financial imbalances.

Although lending to LDCs seems to be 

under control, a survey of insured State 

nonmember banks with assets of $300 

million or more was conducted in 1977, in 

cooperation with the other Federal bank 

regulatory agencies, to investigate the 

nature, extent, and geographic distribution 

of overseas lending. Of the 67 insured State 

nonmember banks asked to complete the 

report, 26 reported some form of foreign 

credit activity (bank placements, loans, or 

securities exceeding $1 million). As of 

June 30, 1977, these banks reported total 

foreign investments of $2.7 billion. A geographic breakdown of total foreign claims 

was:

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PROMOTING SOUND BANKING 13

Latin America 

Western Europe 

Caribbean 

Asia/Pacific 

Africa

North America 

Middle East 

Eastern Europe

$ 604 million 

556 million 

457 million 

433 million 

309 million 

230 million 

115 million 

42 million

$2,746 million

It is the Corporation's intention to conduct this survey on a regular basis. The Corporation believes that the aggregate data 

will also be useful to the banking industry.

Applications for deposit insurance. The 

FDIC is required under section 6 of the 

Federal Deposit Insurance Act to consider 

a bank's financial history and condition, 

the adequacy of its capital structure, its 

future earnings prospects, the general character of its management, the convenience 

and needs of the community, and the consistency of the bank's corporate powers 

with the purposes of the act when the bank 

applies for deposit insurance. State nonmember banks apply directly to the Corporation for deposit insurance. The Comptroller of the Currency certifies that these 

criteria are met before it will grant a national charter, and the Federal Reserve 

certifies that a State bank meets the criteria before it grants membership in the 

Federal Reserve System.

Of 104 applications for Federal deposit 

insurance considered by the Corporation's 

Board of Directors in 1977, 98 were approved and 6 were denied. One application 

was denied again after reconsideration. 

Thirty-one of the approved applications 

came from the 11 unit-banking States.

APPLICATIONS FOR DEPOSIT INSURANCE AND BRANCHES APPROVED

BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, 1960-1977

1.000-

A p p lic a tio n s for B ra n c h e s 

A p p lic a tio n s lor Deposit Insurance

600

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14 FEDERAL DEPOSIT INSURANCE CORPORATION

Twenty-six State member banks applied 

for continuation of their insured status 

following voluntary withdrawal of their 

membership from the Federal Reserve 

System; 25 of these applications were 

approved under delegated authority by the 

Corporation's 14 Regional Directors, and 1 

was approved by the Board of Directors.

Applications for branches. The Corporation's approval is also required before an 

insured nonmember bank may establish or 

change the location of 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, or checks paid, or 

money lent." Tellers' windows and other 

limited service facilities are included under 

this definition even though they may not 

be "branches" under the laws of the respective States.

During 1977, the Corporation considered 696 applications for prior consent 

to establish new branches. The Corporation's Board of Directors approved 69 

applications and 622 were approved under 

delegated authority by the Director of the 

FDIC's Division of Bank Supervision or by 

the Corporation's 14 Regional Directors. 

Five applications were denied because of 

unfavorable findings with regard to one or 

more of the statutory factors considered: 

the financial history and condition of the 

bank, the adequacy of its capital structure, 

its future earnings prospects, the general 

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

be served by the bank.

Of 278 applications considered in 1977 

for the Corporation's prior consent to the 

operation of limited branch facilities (84 

of which were unmanned operations), 87 

were approved by the Corporation's Board 

of Directors, and 191 were approved under 

delegated authority. In addition, the Corporation accepted 266 notifications of 

unmanned remote service facilities which 

were to be established without the Corporation's approval but subject to publication and a 30-day waiting period. The 

Corporation also accepted notifications by

129 banks that they intended to share 464 

remote service facilities owned and operated by other banks, also without approval 

as branches. Remote service facility activity among insured State nonmember banks 

has been heaviest in Iowa, Nebraska, New 

York, Oklahoma, Tennessee, and Wisconsin.

Policy on legal fees in insurance and

branch applications. On October 25, 1977, 

the Corporation's Board of Directors 

adopted a new statement of policy on legal 

fees and other expenses incident to applications for insurance and consent to establish branches, amending and superseding 

the statement of policy previously adopted 

on August 25, 1972. Fees for legal services 

or other organizational expenses will no 

longer be questioned solely because of 

amount. In the future, all such fees for 

legal services and other organizational expenses must be accompanied by supportive 

documentation. In the case of legal fees, 

such documentation may consist of material such as itemized time sheets showing 

the time actually expended by counsel on 

the applications concerned, the hourly rate 

charged, and the specific circumstances, 

including unusual complexities, the necessity for agency or court appearances, and 

the like, necessitating the time expended. 

The reasonableness of the fees will be considered with certain guidelines. The Board 

of Directors in adopting the revised statement of policy concluded that fee limitatio ns based upon presumptive dollar 

amounts are unrealistic because of variable 

factors influencing the amount of legal fees 

charged, for example, variations in the cost 

of living among geographic areas which are 

reflected in the costs of legal and other professional services, and additional work 

expended in connection with unusually 

complex organizations.

The legal fees or organizational expenses will be reviewed for reasonableness 

even though they may be absorbed wholly 

or partially by another entity such as a 

holding company. Also, expenses for legal 

or other services rendered by organizers, 

Digitized 

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Federal Reserve Bank of St. Louis
PROMOTING SOUND BANKING 15

major shareholders will receive special 

scrutiny for any evidence of self-dealing to 

the detriment of the bank or its other 

shareholders. In no case will an FDIC application be approved where the payment of a 

fee, in whole or in part, is contingent upon 

any act or forbearance by the Corporation 

or by any other Federal or State agency or 

official. Such contingent arrangements, 

while permissible in some States in adversary civil litigation, are considered totally 

inappropriate in matters relating to Federal deposit insurance or FDIC branch 

applications.

Mergers. The authority of the Federal 

bank supervisory agencies to regulate 

merger transactions is specified in the Bank 

Merger Act of 1960 and the Bank Merger 

Act of 1966 which amended section 18(c) 

of the Federal Deposit Insurance Act. 

Before any insured bank may engage in a 

merger transaction, as defined in the Federal Deposit Insurance Act, it must have 

the approval of a Federal bank supervisory 

agency. The Corporation is the deciding 

agency when the surviving institution is to 

be an insured nonmember bank, or in any 

merger of an insured bank with a noninsured institution.

Before approving any proposed merger 

of an insured bank, the deciding Federal 

agency must consider the effect of the 

transaction on competition, the financial 

and managerial resources of the banks, the 

future prospects of the existing and proposed institutions, and the convenience 

and needs of the community to be served. 

The agency may not approve any merger 

that would further an attempt to monopolize or that would result in a monopoly 

under the Sherman Antitrust Act. The 

agency may approve a merger that would 

substantially lessen competition in any 

section of the country, or tend to create a 

monopoly, only if the responsible agency 

finds these anticompetitive effects are 

clearly outweighed in the public interest 

by the probable effects on the needs and 

convenience of the community to be 

served. The Justice Department may, within 30 days (or in emergency cases, within 5

days) following approval of a bank merger 

by the Federal supervisory agency, bring 

an action under the antitrust laws to prevent the merger.

The Corporation approved 72 merger 

proposals under section 18(c) during 1977 

(including 6 emergency cases) and denied 

4. There were 27 applications involving 

corporate reorganizations, which had no 

competitive effect, that were also approved, including 22 in connection with 

the acquisitions of banks by holding companies. Additionally, Florida banking statutes were changed, effective January 1,

1977, to allow county-wide branching. As 

a result, the Corporation approved 22 

merger applications involving affiliates of 

the same holding company, which, although they did not involve a "phantom 

bank/' were essentially corporate reorganizations having no effect on competition. 

The act requires that descriptive material 

on each merger case that is approved, the 

basis for approval, and the Attorney General's advisory report be published in the 

deciding agency's annual report. This information for 1977 is published on pages 

53-119 of this report.

The deciding agency must also request 

from the other two Federal bank supervisory agencies and from the Attorney 

General of the United States a report on 

the competitive factors involved in the case 

before deciding on any application, unless 

the agency finds that it must act immediately to prevent the probable failure of 

one of the banks involved. I n 1977, 60 advisory reports were filed on.the competitive factors involved in merger transactions in which the resulting institution 

would be a national or State member bank. 

In nine of these reports, the deciding 

agency was informed that the Corporation 

considered the competitive factors presented to be adverse in one or more respects. The Board of Governors of the 

Federal Reserve System subsequently 

denied one of these applications and approved another. The Comptroller of the 

Currency approved four of the applications and had taken no action on the other

Digitized for FRASER 

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

three applications by the end of the year.

There has been no case in recent years 

where any significant competitive question 

raised in the reports submitted to the Corporation had not already been brought to 

light by its own staff and considered fully 

in rendering a decision. That being the case 

and in order to expedite processing, the 

Board of Directors delegated to the Executive Secretary the authority to act on its 

behalf to furnish reports to the other bank 

supervisory agencies if the proposed merger would have no significant competitive 

effects. During 1977, 49 of the 60 competitive reports sent to the other agencies 

were done under delegated authority. The 

Corporation continues to believe that the 

advisory opinions required by the Bank 

Merger Act are an expensive and timeconsuming exercise which could be eliminated with no effect on the careful consideration given to each case by the responsible agency.

Change in bank control and loans secured by bank stock. The chief executive 

officer of an insured bank is required by 

section 7(j) of the Federal Deposit Insurance Act to report to the appropriate Federal supervisory agency any change in 

ownership of a bank's outstanding voting 

stock that involves 10 percent or more of 

the outstanding shares and results in a 

change of control of the bank. The Corporation received 507 notices of change in 

c o n tro l involving insured nonmember 

banks during 1977. Banks must also report 

any change of the chief executive officer or 

of any director occurring within a 12- 

month period following the change of

MERGERS APPROVED* BY THE

FEDERAL DEPOSIT INSURANCE CORPORATION, 1960-1977

6 0 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

50

40

20

I9 6 0 * * 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977

* C e r ta i n mergers u n d e r t a k e n as pa r t o f inte rn a! re o rg a n iz a ti o n s n o t i n c l u d e d — see tex t.

* *P e rio d beginning May 13, I9 6 0 , to end of year. Digitized for FRASER 

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Federal Reserve Bank of St. Louis
PROMOTING SOUND BANKING 17

control. With certain exceptions, whenever 

any insured bank makes a loan secured by 

25 percent or more of the outstanding 

stock of a bank, the lending bank must file 

a report with the supervisory agency having primary regulatory responsibility for 

the bank whose stock secures the loan. 

These reports constitute important supervisory tools which enable the Federal 

banking age.ncies to assess promptly the 

impact upon the bank resulting from a 

change in control.

During 1977, legislation was introduced 

in Congress (H.R. 9086) which would expand section 7 of the Federal Deposit 

Insurance Act to give the Corporation the 

authority to deny in advance any change in 

control of an insured bank. The proposed 

legislation would also subject all bank 

stock to the margin requirements established by securities laws and would require 

full disclosure to the Federal Deposit Insurance Corporation of loans secured by 

25 percent or more of an insured bank's 

stock. No final action had been taken on 

that legislation by year-end.

Bank security. The Bank Protection Act 

of 1968 provided for the establishment of 

minimum standards for the installation, 

maintenance, and operation of security 

devices and procedures to discourage external bank crimes and to assist in the apprehension of persons who commit those 

crimes. Part 326 of the Corporation's 

Rules and Regulations implements the 

Bank Protection Act and requires each insured nonmember bank to submit a Report 

of Crime following the perpetration or 

attempted perpetration of a robbery, burglary, or nonbank-employee larceny. The 

Corporation received 1,013 Reports of 

Crime during 1977. Part 326 also requires 

banks to file a Report on Security Devices 

and Procedures within 30 days of becoming insured and for each newly opened 

banking office.

As of the last business day in June, each 

insured nonmember bank must complete a 

report certifying its compliance with the 

security requirements of Part 326. Section 

326.5 of the Corporation's Rules and

Regulations was amended in 1977 to require retention of these reports in the 

banks' files for review by FDIC examiners. 

The regulation previously required submission of these reports to the Corporation.

A combined Report on Security Devices and Report of Crime has been designed and was in the final stages of development at year-end 1977. The new form 

represents a combined effort by the staffs 

of the three bank regulatory agencies, the 

Federal Home Loan Bank Board, and the 

National Credit Union Administration to 

simplify reporting of external crimes by 

financial institutions and to update current 

files containing information on security 

devices.

GAO study of Federal supervision of

banks. Although the Corporation has been 

subject to a General Accounting Office 

(GAO) audit of its financial operations for 

the past 32 years, its bank supervisory 

function had never been audited. In 1976 

several congressional committees, concerned over large bank failures and reports 

of large problem banks, requested the 

GAO to study the bank supervisory activities of the Corporation as well as those of 

the Federal Reserve System and the Office 

of the Comptroller of the Currency. In 

April 1976, the Corporation and the GAO 

agreed to a GAO study of the FDIC's bank 

supervisory activities under operating 

guidelines that gave the GAO unlimited 

access to bank examination reports and 

other related records held by the Corporation, but that prohibited the GAO from 

disclosing any information gained in the 

conduct of the study concerning specific 

banks, bank officers, or bank customers. 

The GAO submitted the completed study 

of Federal supervision of State and national banks, to Congress in January 1977.

As a direct outgrowth of this GAO 

study, the Corporation agreed to permit 

the GAO to perform a similar study of its 

supervisory activities on an annual basis 

over a 3-year period, subject to the terms 

and conditions of the earlier agreement. 

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

warded to Congress the results of its audit 

for calendar-year 1976 of the Federal Deposit Insurance Corporation. The GAO in 

its letter to Chairman LeMaistre indicated 

that the 1976 Audit Report was the first 

one since 1964 to include an unqualified 

opinion on the Corporation's 1976 and

1975 financial statements. The GAO was 

again granted unrestricted access to the 

Corporation's examination reports, files, 

and other records relating to insured 

banks.

Reports of Income and Condition. During 1977, the Federal Deposit Insurance 

Corporation, along with the Board of 

Governors of the Federal Reserve System 

and the Comptroller of the Currency, completed and issued for public comment a 

number of proposed revisions of the Reports of Income and Condition for banks. 

The proposed revisions relate mainly to 

additional information on some operations 

of "large" banks, and on the foreign operations of banks, continuing a plan of revisions which was partially implemented in

1976. The three Federal banking agencies 

have decided to implement the proposed 

revisions, as modified by consideration of 

the comments received from banks and 

others, with the December 197S Reports 

of Condition and I ncome.

During the year, the Corporation participated in a number of "Call Report 

Clinics" which were sponsored by the 

Bank Administration Institute to assist 

banks in the preparation of the Reports of 

Income and Condition. There were approximately 5,000 participants in the 40 

sessions held in various parts of the United 

States.

Surveys. The FDIC began participating 

with the Board of Governors in a new quarterly survey of lending terms to business 

and to farmers in 1977. The survey was 

undertaken in an effort to investigate the 

factors that enter into the cost of credit to 

small business and farmers and also in response to requests from congressional 

committees and various government agencies for more information on loans to small 

businesses.

Also beginning in 1977, the survey of 

selected operating statistics for all mutual 

savings banks, which had previously been 

conducted monthly, was changed to a 

quarterly basis and the amount of data 

collected by the survey was reduced. Following a joint review by the FDIC and the 

Commission on Federal Paperwork, the 

FDIC decided that its needs could be met 

with less frequent collection of the data.

In June 1977, the regular survey of 

deposits in each banking office was conducted. Dollar amounts of deposits of 

various types in individual banking offices, 

which are collected in this survey, are available to the public. In September another 

similar survey obtained both the amount 

of deposits and the number of accounts, in 

various size categories, from each insured 

bank, providing data for estimating the 

Corporation's potential insurance liability.

In July 1977, the FDIC implemented a 

survey of a sample of nonmember banks 

which collects weekly data on vault cash 

and deposits. The FDIC had collected this 

information in a pilot survey from June

1974 through May 1975. These data are 

designed to assist the Federal Reserve in 

measuring the deposits of insured nonmember banks which are included in the 

money supply.

Continuing in 1977 were surveys that 

obtained information on mortgage rates 

and mortgage lending, interest rates on 

time and savings deposits, and trust assets 

of insured commercial banks. A t the request of the Senate and House banking 

committees, special surveys were conducted to obtain information about lending to bank insiders and about overdraft 

extensions. One of these surveys, which 

was in process at year-end, collected information from ail insured banks on bank 

stock loans, overdrafts, and loans to bank 

officers, directors, and major stockholders.

PROTECTING DEPOSITORS

Federal deposit insurance is available to 

incorporated banks and trust companies 

that receive deposits. All national banks 

and State-chartered banks that are memDigitized for FRASER 

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Federal Reserve Bank of St. Louis
PROTECTING DEPOSITORS 19

bers of the Federal Reserve System are required by statute to participate in the 

Federal deposit insurance program. On 

December 31, 1977, nearly 98 percent of 

all commercial banks in the United States, 

and about 69 percent of all mutual savings 

banks, were covered by Federal deposit 

insurance. The 144 mutual savings banks 

that were not insured by the FDIC were 

located in Massachusetts and were covered 

under the deposit insurance program of 

that State. Each individual or business depositor is protected by Federal deposit 

insurance up to $40,000 in each insured 

bank. Time and savings deposits held by 

government units (except deposits held in 

out-of-State banks) are insured up to 

$ 100,000 for each depositor.

The principal methods available to the 

FDIC to protect depositors in failing insured banks are the deposit assumption 

method and the direct payoff method. 

Since 1934, 541 insured bank failures have 

required Corporation disbursements, including 238 deposit assumption cases and 

303 direct payoff cases.

The FDIC is authorized under section 

13(e) of the Federal Deposit Insurance Act 

to financially assist a purchase and assumption transaction whenever its Board of 

Directors finds that the expected loss or 

risk to the Corporation will thereby be reduced. This assistance may take several 

forms. The FDIC may purchase the assets 

or grant a loan secured by the assets of a 

failing bank. It may also indemnify the 

absorbing insured bank against loss due to 

its assumption of liabilities and acquisition 

of assets in the deposit assumption transaction. Under the deposit assumption

INSURED BAN K FAILURES, 1934-1977

NO. OF B A N K S

6 0 -

50-

40-

30-

) JTJW -v. ^ ...-,-r ..... i ijti ijiti

1 ............................. - .....................— ........... .............. .................— — — *

°1934 '36 '38 '40 '42 '44 '46 '48 '50 '52 '54 '56 '58 '60 '62 '64 '66 '68 70 72 74 76

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

method, all depositors are afforded full 

protection with minimal, or no, disruption 

of banking services to the community.

When the deposit payoff method is 

used, the FDIC pays directly to depositors 

the net amount eligible for deposit insurance. These payments begin usually within 

5 to 7 days of the bank closing. To find the 

net amount of insured deposits for each 

depositor, the Corporation's claim agents 

use the claims presented by depositors and 

the records of the bank to determine a 

total from which the matured debts owed 

by the depositor to the bank may be deducted.

Bank failures in 1977. The six insured 

banks that failed in 1977 ranged in deposit 

size from under $2 million to $170 million. 

This contrasts with the 16 failures that 

occurred in 1976 including 3 banks with 

deposits of more than $100 million. Purchase and assumption transactions were 

arranged in five of the cases in 1977, and 

the FDIC advanced $19 million in those 

transactions. The sixth transaction, which 

is discussed below, involved assistance to 

Banco Economias, San German, Puerto 

Rico. The assuming banks paid purchase 

premiums totaling $2.9 million for the 

right to acquire the failed banks' deposit 

liabilities. When a significant price for a 

transaction is paid by the acquiring bank, 

this is added to the capital cushion available to the FDIC to absorb losses.

The FDIC provided assistance in the 

case of the distressed Banco Economias, 

San German, Puerto Rico, an insured nonmember bank, under the authority granted 

in section 13(e). To facilitate the acquisition of Banco Economias by the newly 

chartered, FDIC-insured Banco Central Y 

Economias, a wholly owned subsidiary of 

Banco Central, S.A., Madrid, Spain, the 

FDIC purchased for cash $15 million book 

value of assets of Banco Economias. The 

market value of these assets is believed to 

be considerably less.

As agreed also, Banco Central of Madrid 

placed $10 million of capital in Banco 

Central Y Economias. The subordinated

noteholders and common stockholders of 

Banco Economias received a contingent 

interest in capital notes in the new bank 

which total $5.4 million. The notes are 

payable between 10 and 20 years after the 

date of the transaction. The plan provides 

that interest and principal payments on the 

capital notes will accrue to the FDIC until 

any FDIC loss on the assets it purchased is 

recovered. Any amounts remaining unpaid 

on the notes after repayment of the FDIC 

loss will be paid to the shareholders and 

subordinated noteholders of Banco Economias. The stockholders of Banco Economias also will receive warrants to purchase 

common stock of Banco Central Y Economias. The transaction was approved by the 

directors, stockholders, and subordinated 

creditors of Banco Economias, the Federal 

and Puerto Rican bank regulatory authorities, and the appropriate governmental 

authorities in Spain.

Repayment of loans to assist deposit

assumptions. In December 1977, 10 

months prior to the scheduled maturity 

date, the Corporation received payment in 

full from Crocker National Bank of its 

$50-million capital note. The loan was 

made by the FDIC on October 22, 1973, to 

facilitate the assumption of deposits and 

certain other liabilities of the failed United 

States National Bank, San Diego, California.

Also in 1977, the FDIC received early 

payment in full of its $5-million loan to 

Southeast Banking Corporation of Miami, 

Florida. The loan was made by the FDIC 

on January 9, 1976, as part of a potential 

$ 10-m il I ion assistance package designed to 

facilitate the takeover of the distressed 

Palmer First National Bank and Trust 

Company of Sarasota, Florida, by Southeast First National Bank of Sarasota. The 

$5-million loan was due on December 1,

1978. The FDIC had agreed to make 

another $5 million available to Southeast 

should any of its banking subsidiaries require additonal capital because of a deterioration in the quality of certain assets 

acquired from Palmer First National Bank

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Federal Reserve Bank of St. Louis
PROTECTING DEPOSITORS 21

and Trust Company. This facility was not 

needed and it was cancelled as part of the 

transaction. With repayment and termination of the loan agreement, the FDIC and 

Southeast successfully concluded their 

joint undertaking.

Direct assistance to operating insured

banks. If an operating insured bank is both 

in danger of closing and essential to maintain adequate banking services in the community, the FDIC may offer direct assistance to the bank, as authorized in 1950 

under section 13(c) of the Federal Deposit 

Insurance Act. The Corporation has made 

use of this authority in assisting four insured banks in danger of closing. The first 

instance came in 1971 and the most recent 

in 1976 in assisting the Farmers Bank of 

the State of Delaware.

The original program of assistance to 

Farmers Bank was consummated on June 

10, 1976, but subsequent developments 

led to the need for revisions in 1977. It 

became apparent that the bank had a 

higher level of severely classified assets

than originally estimated, against which it 

had to establish additional reserves. The 

effect of this problem on the bank's financial condition was heightened by its accountant's interpretation of certain accounting rules which made the original 

plan less attractive than contemplated.

The revised assistance package consists 

of three agreements:

(1) The FDIC cancelled the obligation 

of Farmers Bank to pay any loss the 

FDIC may incur on the assets it purchased from the bank in the 1976 

transaction. The Corporation purchased for $32 million bank assets 

with a book value of $40 million. 

Originally, the bank agreed to repay 

the Corporation 40 percent of any 

loss suffered in collecting the $32 

million, with a maximum liability of 

$8 million. Full repayment was to 

have been made probably no sooner 

than 1996 and out of future earnings. Therefore, the liability which is 

being forgiven had a significant conINSURED BANKS CLOSED DURING 1977 REQUIRING DISBURSEMENTS 

BY THE FEDERAL DEPOSIT INSURANCE CORPORATION

Name and location

Date of 

deposit 

assumption

Number of 

depositors 

or accounts

A m ount of 

deposits (In 

m illions of 

dollars)

First State Bank 

Foss, Oklahoma March 10, 1977 1,022 1.8

The Monroe Bank 

and Trust Company 

Monroe, Connecticut March 28, 1977 3,460 2.8

First Augusta Bank 

& Trust Company 

Augusta, Georgia May 20,1977 14,904 20.0

Republic National Bank 

of Louisiana 

New Orleans, Louisiana July 29, 1977 3,118 4.9

Donahue Savings Bank 

Donahue, Iowa August 26, 1977 1,382 5.6

Banco Economias 

San German, Puerto Rico September 2,1977 71,638 170.0

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

DEPOSITS AN D LOSSES IN ALL INSURED BANKS

REQUIRING DISBURSEM ENTS BY FDIC, 1934-1977

TOTAL DEPOSITS 

$6.43 billion

DISBURSEMENTS BY FDIC 

$2.98 billion

/ Recovered by FDIC j $2.67 billion

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Federal Reserve Bank of St. Louis
PROTECTING DEPOSITORS 23

tingency nature and a present value 

substantially less than the$8 million 

maximum liability.

(2) The State of Delaware immediately 

transferred to the FDIC $2 million 

of the $20 million of Farmers Bank 

6-percent preferred stock which the 

State purchased in 1976 as part of its 

assistance to the bank. Redemptions 

will be received pro rata by the State 

and the FDIC.

(3) The State of Delaware, which had 

been required to maintain its demand deposits in Farmers Bank at a 

minimum level of $75 million, gave 

up its previous right to reduce that 

level to $50 million by early 1978 

and will instead maintain the $75 

million minimum until the end of 

1980.

The amendments represent a continuation of the principle embodied in the original assistance plan that the FDIC and the 

State should share in the costs of aid to the 

bank through a recognition of their mutual 

interests arising from the FDIC's role as 

insurer of deposits and the State's position 

as the bank's largest depositor and shareholder. By increasing the bank's income 

potential and allowing it to remove from 

its books a significant liability, the program will allow Farmers Bank to continue 

to be a viable banking entity, furnishing 

essential services to the Delaware economy.

The Corporation usually receives a 

number of informal inquiries each year for 

13(c) assistance that never reach the formal application stage. In 1977, a total of 

five formal applications were presented to 

the Board of Directors; however, none of 

the applications were approved. In denying these applications, no assistance was 

given because in the opinion of the board 

the applicant banks did not meet the condition of essentiality, and also in some 

cases because the assistance requested was 

not expected to result in a viable banking 

institution. Of the five denials, one of the 

banks has since failed.

Disbursements in deposit insurance

transactions. From January 1, 1934 

through December 31,1977, the Corporation disbursed approximately $3.0 billion 

to protect depositors in 545 insured banks 

with aggregate deposits of about $6.4 billion. The Corporation's total losses, including losses currently expected on assets 

in process of liquidation, amounted to 

$308.4 million through the end of 1977.

In the 541 failed bank cases, 99.8 percent of the depositors had received or were 

assured of payments of their deposits in 

full at the end of 1977, and 99.6 percent of 

the total deposits had been paid or made 

available to them. In deposit payoff cases, 

more than 99 percent of depositors had 

received full recovery, and while the recovery of uninsured deposits is subject to 

variation between individual cases, in the 

aggregate over 96 percent of total deposits 

had been paid or made available. About 72 

percent of the total amount already recovered by or made available to depositors 

in deposit payoff cases was provided by 

FDIC payments of insured deposits, with 

additional amounts provided from the proceeds of liquidated assets, offsets against 

indebtedness, and pledged assets.

Liquidation activities. The FDIC's Division of Liquidation administers a large 

portfolio of assets of closed banks held by 

the Corporation either directly or as receiver. It began the year with over 72,000 

assets with a book value of approximately 

$2.6 billion, over $900 million of which 

was real estate related. Although the six 

insured bank failures this year added 4,300 

assets totaling $44 million, the division was 

able to collect $628 million, ending 1977 

with a portfolio of 64,000 assets with an 

approximate book value of $2.1 billion.

In its largest liquidation, Franklin 

National Bank, New York, New York, the 

FDIC paid, on October 7, 1977, the remaining indebtedness to the Federal Reserve Bank of New York. The FDIC incurred this debt in its corporate capacity 

following the closing of Franklin National 

Bank when it assumed Franklin's outstandDigitized for FRASER 

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

LIQ UIDATIO N ACTIVITY

FEDERAL DEPOSIT INSURANCE CORPORATION, 1970-1977

M illio n s of dollars

2,7 0 0-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

2,4 0 0------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------—

B O O K VALUE

OF AS S E TS

2,100-------------------------------------------------------------------— — --------— ----— -------------

1 ,8 0 0 ---------------------------------------------------------------------------------------------------------------------------------------

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

1.200 ----------------------------------------------------------------------------------------------------- | : l l ; l j | l | l l l | | ! | ! ! | j l ; | l | l l

6 0 0 ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------— — - — -

3 0 0 -----------------------------------------------------------------------------------------

U • • — • • • • " Y ' - ' .....•..........•••'•••'•'•'t •.....•'• • • • • •••••• •' • ^ v , Tv _ , , . , v ^ , v . ^ • ,, •: - • ^ - - ■ • - ^ ^ ^ -v ,., - ^ ,, _

1970 '71 72 73 74 75 76 77

Num ber 

80-

70-

60-

5 0 -

4 0 -

30-

2 0 -

10-

0— i---------------------------1--------------------------- 1--------------------------- 1-------------------------- 1----------------------------1---------------------------1-------------------------- r~

1970 71 72 73 74 75 76 77

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
ENFORCING CONSUMER LEGISLATION 25

ing "w indow" loan which amounted to 

$1.7 billion plus one day's interest of $472 

thousand. Since February 1975, the FDIC 

had been paying this debt on a daily basis 

from collections on the Franklin assets it 

holds. These assets were acquired by the 

FDIC because they were not acceptable to 

the assuming bank. As of October 7, 1977, 

the FDIC had collected $1.4 billion on 

these assets. I nterest of 7.52 percent on the 

note, which was due not later than October 

8, 1977, was paid on October 7, 1977. The 

final installment of $389 million principal 

plus $219 million accrued interest was paid 

by the Corporation out of its cash reserves. 

The total amount of $608 million will be 

repaid to the Corporation out of the future 

liquidation of Franklin's assets plus interest computed on the unpaid balance at 6-1/2 

percent per annum.

The Corporation's liquidation procedures are continually evaluated to ensure 

that all available avenues are being pursued 

in the liquidations of closed banks consistent with the Corporation's objective of 

converting the assets to cash expeditiously 

while realizing a maximum recovery for 

distribution to creditors and stockholders. 

The Division of Liquidation in 1977 was 

successful in closing 13 transactions involving bulk sales of assets and collected 

over$82 million.

Recovery for creditors and stockholders can also result in some cases from 

directors' liability actions initiated by the 

receiver. Because many bank closings are 

the direct result of bank directors' failure 

to use reasonable or ordinary care in discharging their duties or their allowance of 

violations of banking laws, it is a normal 

practice for the Corporation as receiver or 

liquidator of the failed bank to investigate 

potential negligence and to file claims 

against members of the bank's board when 

such action is warranted. In 1977, the Corporation filed 7 directors' liability suits; at 

the end of 1977, 24 such suits were pending.

Whenever it is determined that the bank 

had suffered losses due to the fraudulent

and dishonest acts of its employees, the 

Corporation as receiver or liquidator of the 

failed bank pursues a claim against the 

bank's banker's blanket bond carrier. Most 

claims are settled without litigation; however, at the end of 1977 there were seven 

such suits pending.

ENFORCING CONSUMER

LEGISLATION

The FDIC is responsible for the enforcement of a number of consumer protection 

laws and regulations, including the Truth 

in Lending Act, the Fair Credit Reporting 

Act, the Real Estate Settlement Procedures Act, the Equal Credit Opportunity 

Act, the Fair Housing Act, the Home Mortgage Disclosure Act, and the Community 

Reinvestment Act with respect to insured 

State nonmember banks. In most cases, the 

Corporation is explicitly given this responsibility by a governing statute. In some 

cases, however, this responsibility evolves 

from the broader supervisory responsibility of assuring that insured State nonmember banks comply with applicable 

Federal law.

Compliance examinations. The FDIC 

carries out its responsibility to enforce 

various consumer protection laws primarily through the examination and supervisory process. In the past, FDIC examiners checked for compliance with these 

laws for the most part during regular bank 

examinations. In May 1977, the FDIC 

began a new program directed solely to 

checking for compliance with the various 

laws and their related regulations in separate specialized examinations. Such examinations are conducted at times other than 

during the regular safety and soundness 

examinations. These compliance examinations are conducted by trained examiner 

specialists assigned to the compliance 

examination and enforcement function for 

a period of 6 months. Under this program, 

each insured nonmember bank is scheduled for a specialized compliance examination at least once every 15 months. I n addiDigitized for FRASER 

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

tion, follow-up examinations or visitations 

are scheduled as the circumstances require.

The compliance examinations are 

normally done by reviewing a sample of 

pertinent transactions and documents and 

through discussions with bank management. Violations and other exceptions 

discovered in the examination process are 

reported and followed up by the staffs of 

the various Regional Offices to assure that 

appropriate corrective measures are taken. 

The consumer affairs specialists in each of 

the FDIC's 14 Regional Offices coordinate 

this function and serve as the focal point 

within each Regional Office for matters 

related to compliance.

Each Regional Office staff makes every 

effort to resolve exceptions and obtain 

compliance voluntarily with applicable 

requirements, by means of moral suasion, 

additional follow-up examinations, visitations, and meetings with the boards of 

directors of the banks involved, or other 

means. If voluntary compliance cannot bt' 

obtained in this manner, a formal administrative proceeding under section 8 (b) of 

the Federal Deposit Insurance Act may be 

initiated and may lead to the issuance, by 

the FDIC's Board of Directors, of a ceaseand-desist order. During 1977, the Board 

issued 13 such orders relating in whole or 

in part to violations of consumer protection laws and regulations.

Five States (Connecticut, Maine, Massachusetts, Oklahoma, and Wyoming) have 

State truth-in-lending requirements, and in 

these States, FDIC examiners check for 

compliance only with applicable Federal 

truth-in-lending requirements, that is, 

those requirements for which the five 

States have not received an exemption. 

Enforcing compliance with the State requirements that are substantially similar to 

Federal requirements and for which the 

five States have received an exemption is 

the responsibility of the appropriate State 

authority.

Fair housing lending. In the area of fair 

housing, the FDIC has proposed new regulations intended to provide a basis fora

more effective fair housing lending enforcement program under the Fair Housing 

Act and the Equal Credit Opportunity Act. 

Data pertaining to applications for and 

inquiries about home mortgage loans and 

home improvement loans on one- to fourfamily residential units, including race and 

sex identification, would be collected and 

analyzed to detect whether the possibility 

of illegal discrimination should be investigated. The system proposed was the basis 

for an out-of-court settlement entered into 

between the plaintiffs and the FDIC in 

National Urban League, et a I. v. Comptroller o f the Currency, et a!., which was 

signed on May 13, 1977. Since that time, 

the FDIC and the former plaintiffs have 

been actively cooperating in an effort to 

ensure that the system finally implemented directly addresses the problem 

areas for which it is designed.

The proposed regulations also include 

an amended version of the fair housing 

advertising and poster provisions which are 

now contained in the FDIC's policy statement entitled "Nondiscrimination in Real 

Estate Loan Activities." These provisions 

require insured State nonmember banks to 

indicate, both in their home loan advertisements and at the locations where their 

home loans are made, that they are equal 

housing lenders. Further, the advertising 

provision would prohibit the banks from 

engaging in discriminatory advertising 

practices which violate the Fair Housing 

Act or the Equal Credit Opportunity Act.

A t the request of the Senate Committee 

on Banking, Housing, and Urban Affairs, 

the FDIC joined with the Federal Home 

Loan Bank Board in contracting for a 

study of the mortgage loan data depository 

institutions are required to prepare and 

make available to the public under the 

Home Mortgage Disclosure Act. The study 

wilI focus on the accu racy of the data presently being compiled, how the data may be 

used in fair housing lending enforcement 

activities, and possible ways in which the 

Home Mortgage Disclosure Act may be 

amended to enhance the usefulness of the

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ENFORCING INVESTOR LEG ISLATIO N 27

data in enforcement activities. The study 

will be confined to banks and savings and 

loan associations located in the San Diego, 

Chicago, and Buffalo Standard Metropolitan Statistical Areas and is expected to be 

completed in the latter part of 1978.

Bank customer interests and other compliance activities. The Office of Consumer 

Affairs and Civil Rights coordinates FDIC 

efforts to protect the interests of bank customers. The office processes bank customer complaints and inquiries, most of 

which deal with alleged violations of consumer protection laws and various banking 

matters. A brochure describing the FDIC's 

consumer complaint handling function 

and giving information on consumer laws 

was published in 1977. Also, a series of 

consumer information pamphlets explaining the Truth in Lending, Fair Credit Billing, and Equal Credit Opportunity Acts 

was published during 1977.

Reviewing proposed legislation and regulations to assess their impact on bank 

customers is an important function of the 

Office of Consumer Affairs and Civil 

Rights. The office also reviews compliance 

reports on a selected basis and may recommend cease-and-desist actions involving 

alleged violations of consumer laws. In 

addition, the office participated with the 

other Federal financial regulatory agencies 

in drafting a proposed statement of enforcement policy with respect to the Truth 

in Lending Act in 1977.

ENFORCING INVESTOR

LEGISLATION

Publicly held insured State nonmember 

banks fall under the Corporation's explicit 

regulatory authority for public reporting, 

proxy solicitations, and trading by insiders 

of their own bank stock. The Corporation 

also supervises disclosure with respect to 

take-over attempts and other purchases of 

publicly held securities of banks subject to 

its primary jurisdiction. Newer statutory 

responsibilities have engaged the Corporation in the regulation of insured nonmember banks that act as transfer agents or 

deal in municipal securities.

These increasing statutory responsibilities in the securities disclosure area have 

coincided with the Corporation's increased 

interest and concern in securities disclosure problems even where it has no explicit 

statutory mandate. The Corporation, for 

example, has actively encouraged the use 

of offering circulars in connection with 

bank stock and debenture offerings and 

has become more concerned with general 

questions of bank accounting and disclosure by bank holding companies regulated 

by the Securities and Exchange Commission. It has also monitored banks' 

securities marketing devices and banks' 

involvement in the market for their own 

stock.

Securities Exchange Act — Registration

and reporting. The Corporation administers and enforces the registration, company-reporting, and related provisions of 

the Securities Exchange Act of 1934 with 

respect to insured nonmember banks. 

These provisions are applicable to banks 

with more than $1 million in assets that 

have 500 or more holders of any class of 

equity security. Such banks are required to 

file an initial registration statement and 

periodic reports (annually, semi-annually, 

and quarterly) as well as a special report 

covering any material event which occurred in the preceding month. To comply 

with the Corporation's regulations, any 

matter presented for a vote of security 

holders must be effectuated through a 

proxy statement, or an information statement if proxies are not solicited, and where 

directors are to be elected, the proxy or 

information statement must be accompanied or preceded by an annual report 

disclosing the financial condition of the 

bank. Officers and directors of a bank 

whose securities are registered and any 

person or related group of persons holding 

more than 5 percent of such securities 

must report their holdings and any changes 

in their holdings to the Corporation. All 

required statements and reports filed with

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28 FEDERAL DEPOSIT INSURANCE CORPORATION

the Corporation under the Securities Exchange Act are public documents and are 

available for inspection at the Corporation's headquarters and elsewhere.

During 1977,33 banks filed registration 

statements, 3 banks converted from a national to a State charter, and 1 bank was 

spun-off by a holding company pursuant 

to an exchange offer. Sixteen banks terminated registration during the year. The 

year-end total of registered banks was 357 

compared to 336 the year earlier.

Banks acting as municipal securities

dealers, transfer agents, or clearing agents.

The Securities Acts Amendments of 1975 

placed upon the Corporation the responsibility for enforcing compliance with certain securities laws by insured State nonmember banks that are registered as municipal securities dealers, transfer agents, or 

clearing agents.

As of December 31,1977,52 State nonmember banks were registered with the 

Securities and Exchange Commission and 

the Corporation as municipal securities 

dealers and 448 were registered with the 

Corporation as transfer agents. No State 

non member banks were registered as 

clearing agents. The Corporation also 

shares enforcement responsibility with the 

Securities and Exchange Commission for 

their Rules 17f-1 regarding lost and stolen 

securities and 17f-2 concerning fingerprinting of certain bank employees.

In cooperation with the other bank 

regulatory agencies, the Municipal Securities Rulemaking Board, the Securities and 

Exchange Commission, and the National 

Association of Securities Dealers, the 

Corporation developed examination procedures and a compliance report covering 

the municipal securities dealer activities of 

insured nonmember banks. During 1977, 

the Corporation added to its Rules and 

Regulations Part 343 which implements 

the reporting requirements of the Municipal Securities Rulemaking Board Rules 

and Part 342 which prescribes procedures 

for application for a stay or review of actions of bank clearing agencies. Also, Part

310 of the Corporation's Rules and Regulations was amended to establish the 

"Municipal Securities Principals and Representatives System," a system of records 

containing background and other information on municipal securities principals 

and representatives who are employed by 

nonmember insured banks.

ADMINISTRATION OF THE

CORPORATION

Board of Directors. Mr. George A. 

LeM aistre succeeded Mr. Robert E. 

Barnett as Chairman of the Board of Directors on June 1, 1977. Chairman LeMaistre 

has served as a member of the Corporation's Board of Directors since August 1, 

1973.

As of the end of the year, the Director 

position vacated by Chairman LeMaistre 

had not been filled. Comptroller of the 

Currency John G. Heimann, an ex officio 

member of the Board, was appointed on 

July 12, 1977. Mr. Robert Bloom had 

served as the Acting Comptroller of the 

Currency since July 30, 1976.

Research Division. The Board of Directors established the Research Division on 

June 13, 1977, and later in the year, the 

Economic Analysis Section of the Division 

of Management Systems and Economic 

Analysis was incorporated into the Research Division. The Division of Management Systems and Economic Analysis was 

renamed the Division of Management 

Systems and Financial Statistics.

The Research Division is responsible for 

analyzing policy issues, proposed legislation, economic trends, and developments 

affecting financial institutions and markets. The Division of Management Systems 

and Financial Statistics continues to process and analyze bank Reports of Condition 

and,Income and other financial data surveys and to provide data processing systems, information system design, and management analysis support to other FDIC 

divisions and offices.

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AD M IN ISTR ATIO N OF THE CORPORATION 29

Office of Personnel Management. On

June 27, 1977, the Board adopted a resolution creating the Office of Personnel Management to be responsible for personnel 

programs management, personnel policies 

and related matters, and other matters designated by the Chairman and the Board of 

Directors. Previously the personnel functions of the Corporation were carried out 

through the Office of Employee Relations. 

The Office of Employee Relations continues to administer the Corporation's Equal 

Employment Opportunity and Upward 

Mobility Programs and its Grievance Procedure System, coordinate its labor relations 

program, serve as liaison on matters related 

to the Employee Advisory Councils, consult with the Office of Personnel Management on matters related to changes in employee programs, and perform special tasks 

assigned by the Office of the Chairman. 

Despite the organizational separation of 

these two offices, a close working relationship has and will continue to exist because 

of the interrelationship of their respective 

responsibilities.

Office of Consumer Affairs and Civil

Rights. Effective October 25, 1977, the 

Office of Bank Customer Affairs became 

part of the new Office of Consumer Affairs 

and Civil Rights, which consists of three 

operating subdivisions. The Office of Bank 

Customer Affairs will be primarily responsible for handling and coordinating matters 

pertaining to consumer complaints and the 

enforcement of consumer protection statutes. It will also be responsible for preparing various reports, such as the truthin-lending report The Civil Rights Branch 

will be primarily responsible for handling 

and coordinating matters involving discrimination and the civil rights of bank customers. I nitially, a major function of this 

office will be participation in implementing the Corporation's fair housing enforcement program. It will also be responsible 

for preparing the equal credit opportunity 

report. The Special Projects Branch will 

have responsibility for tracking consumer 

and civil rights legislation, assisting in the

preparation of regulations and policy statements, conducting surveys and research as 

needed, and assisting in the planning of edu catio na l program s fo r examiners, 

bankers, and bank customers.

Number of employees. The total employment of the Corporation increased by 

156 in 1977 to a year-end total of 3,691. 

Approximately 70 percent of the Corporation's employees were assigned to the Division of Bank Supervision, and about 73 

percent of that division's employees were 

field bank examiners. During the year, the 

number of commissioned examiners rose 

by 61 to a total of 1,085 at year-end.

The turnover rate for field examiners 

was 8.2 percent compared to 10.1 percent 

for 1976. Of the 151 examiners who left 

the program during the year, 35 found employment in banks. For all employees, exclusive of temporary field liquidation personnel, college students participating in 

the Corporation's cooperative work-study 

program, and temporary summer personnel, the turnover rate was 11.2 percent as 

compared to 13.3 percent for 1976.

Equal Employment Opportunity Program. The Corporation's program of Equal 

Employment Opportunity is administered 

by three full-time professionals, two secretarial support personnel, and approximately 60 employees who are assigned 

specific EEO responsibilities on a collateral 

or part-time basis. A full-time Federal 

Women's Program coordinator and a parttime discrimination complaint administrator were added to the staff of the Director 

of Equal Employment Opportunity in 

1977 and a program assistant (investigator) 

will be added to the EEO staff in 1978, 

providing additional support in the areas of 

EEO and grievance investigations. The Corporation's 1978 EEO Plan was approved 

by the Civil Service Commission on November 18, 1977, and stresses continued 

affirmative recruitment efforts, as well as 

expanded outreach and coordination of 

the program at the regional and field levels, 

among other objectives.

The percentage of women in the CorpoDigitized for FRASER 

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30 FEDERAL DEPOSIT INSURANCE CORPORATION

NUMBER OF OFFICIALS AND EMPLOYEES 

OF THE FEDERAL DEPOSIT INSURANCE CORPORATION 

DECEMBER 31, 1976 AND 1977

Washington Regional and 

Unit Total office field offices

1977 1976 1977 1976 1977 1976

Total.............................................................. 3,691* 3,535* 1,183 1,110 2,508 2,425

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

Executive O ffice s ............................... 54f 57n 54f 57n 0 0

Legal Division.......................................... 104 92 87 79 17 13

Division of Bank Supervision............. .. 2,564 2,450 372 389 2,192 2,061

Division of Liquidation........................

Division of Management Systems

479 501 195 165 284 336

and Financial Statistics..................... 191 192 191 192 0 0

Research D ivision............................... 17 - 17 — 0 —

Office of the C ontroller....................... 178 175 163 160 15 15

Office of Corporate A u d its ..................

Office of Consumer Affairs

30 24 30 24 0 0

and Civil Rights................................ 11 - 11 - 0 0

Office of Employee Relations........... 9 41 9 41 0 0

Office of Personnel Management 52 - 52 - 0 -

^Includes 511 nonperm anent employees on short-term em ploym ent or when actually em ployed in 1977 and 624 in 

1976. Nonperm anent employees include p rim a rily college students participating in the w o rk-stu dy program, and 

^.clerical workers em ployed on a tem porary basis at banks in process o f liqu idation.

Includes O ffice o f Corporate Planning, 

ttIn c lu d e s O ffice o f Bank Customer A ffa irs and O ffice o f Corporate Planning.

ration's general schedule workforce increased from 27.2 percent as of March 27,

1976, to 28.8 percent as of December 3,

1977. During the same 20-month period, 

the percentage of minorities rose from 

12.2 percent to 13.1 percent. Considerable 

progress is evident in the recruitment of 

women and minorities for positions as 

bank examiners. While as of June 30, 1976, 

only 7.9 percent and 4.2 percent of the 

examiner workforce were respectively 

women and minorities, by December 3,

1977, those percentages had increased to 

9.3 percent and 5.6 percent.

Of the 13 structured upward mobility 

positions filled during the latter part of

1976 and in 1977, 2 employees completed 

their training and were assigned to the designated target positions. Additional upward mobility position opportunities will 

be offered under this program during

1978.

Supervisory and other training activities. To maintain a highly qualified bank

examination staff, the Corporation conducts courses in various bank examination 

functions, such as auditing, credit analysis, 

investments, and Corporation regulations 

and policy, in the Division of Bank Supervision Training Center. Consumer protection law training is provided for compliance examination specialists who have not 

received such training previously. In 1977, 

51 sessions were held, with nearly 1,400 

students participating. Since the Training 

Center was established in 1970, approximately 7,700 students have participated in 

the 286 sessions held. While training is directed primarily toward FDIC personnel, 

159 State examiners, 18 students nominated by foreign government banking authorities, and 7 Federal Reserve examiners 

attended FDIC schools in 1977.

In addition to the regular courses, the 

Training Center continued during 1977 the 

annual workshop in fair housing, and also 

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FINANCES OF THE CORPORATION 31

vanced trust matters. To expand examiner 

knowledge in the trust examination area, 

various training programs have been developed over the years to supplement the onthe-job training. An annual trust examiner's workshop, which was initiated in

1976, was held again in 1977. Thirty-five 

Corporation examiners attended the 1977 

session.

The Training Center also handles the 

enrollment of senior examiners in 10 d ifferent graduate schools of banking. During

1977, 140 examiners attended the schools;

74 were new students enrollments.

In addition to the courses offered 

through the Division of Bank Supervision 

Training Center, the Office of Personnel 

Management, through the Corporation's 

Tuition Reimbursement Policy, provides 

the opportunity for all employees to enroll 

in American Institute of Banking and other 

correspondence courses, career-related college training, seminars and workshops in 

specialized areas, and other job-related 

training.

Implementation and administration of

the Freedom of Information Act. The Corporation received 200 requests under the 

Freedom of Information Act during 1977. 

Twenty requests were not acted upon because they were either withdrawn by the 

requester, misdirected to the Corporation, 

or involved records that were not in the 

Corporation's possession.

The Corporation is authorized under 

provisions of the Freedom of Information 

Act to deny requests involving (1) matters 

that are contained in or related to examination, operating, or condition reports prepared by, on behalf of, or for the use of any 

agency responsible for the regulation or 

supervision of financial institutions; (2) 

trade secrets and commercial or financial 

information obtained from a person that 

are privileged or confidential; (3) interagency memorandums or letters that 

would not be available by law to a party 

other than an agency in litigation with the 

agency; and (4) personnel and medical files 

and similar files the disclosure of which

would constitute a clearly unwarranted 

invasion of personal privacy.

The Corporation granted in full 69 requests and denied in full 64 requests. 

Thirty-seven requests were granted in part 

and denied in part. Ten requests were outstanding as of December 31, 1977. 

Twenty-one initial denials were appealed 

to the Board of Directors. The Board sustained 16 initial denials and granted in part 

and denied in part the appeals from 5 initial denials.

Audit. The Corporation's Office of Corporate Audits performs independent audits of financial and operational activities 

within the Corporation and reports the audit results to the Board of Directors. If 

special requirements arise, qualified CPA 

firms are used to supplement the resources 

of the Office of Corporate Audits. The 

General Accounting Office also audits the 

Corporation's financial transactions annually and reports the results to the Congress.

FINANCES OF THE CORPORATION

Assets and liabilities. A t the close of 

business in 1977 the Corporation's assets 

totaled $8.5 billion. Of this total, $7.3 billion was in cash and United States Government securities valued at amortized cost 

plus accrued interest. Equity in assets acquired from failed banks in purchase and 

assumption and depositor payoff transactions, in notes purchased to facilitate deposit assumptions and mergers, and in direct assistance to operating banks totaled 

$ 1.2 billion after deducting $260 million 

for reserves for losses.

The Corporation's liabilities totaled 

$470 million at year-end 1977. Of this 

total, $429 million represented assessment 

credits due to banks, most of which will 

become available on July 1, 1978.

Liabilities decreased $818 million from 

December 31, 1976. The major portion of 

this decrease was due to the payment of 

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32 FEDERAL DEPOSIT INSURANCE CORPORATION

edness, which was incurred by Franklin 

National Bank before its assumption by 

European-American Bank & Trust Company in 1974, was assumed by the Corporation as part of the assumption agreement 

between the Corporation, the receiver, and 

the Federal Reserve Bank of New York.

Deposit insurance fund. The deposit 

insurance fund, which is the Corporation's 

basic financial resource for the protection 

of depositors, amounted to nearly $8.0 billion at the end of 1977. As the excess of 

the Corporation's assets over its liabilities, 

the fund represents its accumulated net income since the beginning of deposit insurance in 1934. Additionally, the Corporation is authorized to borrow up to $3 billion from the U.S. Treasury whenever in

the judgment of its Board of Directors the 

funds are needed for insurance purposes. 

The FDIC has never exercised this authority.

Revenues, expenses, and assessment

credits. The Corporation's revenues rose to 

$1.2 billion in 1977, an increase of $106 

million from 1-976. This increase was due 

primarily to increases in assessment income associated with continued deposit 

growth during the year and interest income 

from the Corporation's investment portfolio of U.S. Government securities. Gross 

assessments earned amounted to$731 million, 59 percent of total revenues. Revenues from investments in U.S. Government securities amounted to $503 million 

in 1977, with $494 million from interest

Billions ol dollars 

1 ,1 0 0 ------------------

DEPOSITS IN INSURED BANKS, 1967-1977

2 0 0 -

100

0 ------------(-----------------------(-----------------------(-----------------------J-----------------------(---------------------- !-----------------------]-----------------------!-----------------------( ( p

mi '68 '69 70 71 72 73 74 75 76 77

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FINANCES OF THE CORPORATION 33

on investments in U.S. Government obligations and $9 million from net amortized 

premiums and discounts. Other revenues, 

amounting to $15 million, were derived 

principally from interest on notes receivable related to assumption transactions.

The Corporation's administrative and 

operating expenses totaled $89 million. 

Provision for insurance losses and expenses 

incurred to protect depositors amounted 

to $24 million. The addition to the deposit 

insurance fund in 1977 was $724 million.

Since 1935 the basic assessment rate to 

be paid by insured banks has been 1/12 of 

one percent of total assessable deposits. 

Legislation enacted in 1950 in effect reduced the statutory rate of assessment by

providing a credit to be applied against 

gross assessments levied each year. Following another legislative change, this credit to 

insured banks has been 66-2/3 percent 

since December 31, 1961. This percentage 

is applied to the gross assessments due 

from banks in the calendar year after subtracting the Corporation's administrative 

and operating expenses, insurance losses, 

and additions to reserve for losses in that 

calendar year. The statutory credit to 

banks amounted to approximately $412 

million in 1977, an increase of $32 million 

from the previous year. This made the net 

assessment paid by insured banks equal to 

approximately 1/27 of one percent of 

assessable deposits in 1977.

M illions of dollars

1400 —

APPLICATION OF REVENUES

FEDERAL DEPOSIT INSURANCE CORPORATION

1967-1977

Expenses and Provision for Losses

1,200 —

1,000

A s se s sm e n t Credits 

Ad ditio ns to Insurance Fund

2 0 0—

0 _J------------------L---------------L - — --------L ----------------L .-------- ............... ..........------------- — _ L ........ ............— ......■■■1"—

1967 '68 '69 70 71 72 73 74 75 76 77

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34 FEDERAL DEPOSIT INSURANCE CORPORATION

COMPARATIVE STATEMENT

OF FINANCIAL CONDITION (In thousands)

ASSETS:

December 31,

1977

December 31,

1976

Cash $ 8,663 $ 22,860

U.S. Government obligations:

Securities at amortized cost 

Accrued interest

7,129,055

137,957

7,267,012

6,630,116

130,113

6,760,229

Equity in assets acquired from payoff cases and

insured banks assisted under section 13(e)

of the FDI Act:

Depositors' claims paid

Depositors' claims unpaid

Loans and assets purchased

Assets purchased outright

Notes purchased plus accrued interest

Less reserves for losses

49,764

900

1,171,083

19,122

132,155

244,741

1,128,283

62,598

1,280

1,664,321

4,326

204,627

223,401

1,713,751

Equity in assets acquired from insured banks

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

Assets purchased outright

Notes purchased plus accrued interest

Less reserves for losses

27,765

37,423

15,400

49,788

30,834

37,007

17,200

50,641

Miscellaneous assets 2,370 1,869

Land and office building, less depreciation

on building 6,418 6,553

Total Assets $8,462,534 $8,555,903

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FINANCES OF THE CORPORATION 35

FE D ER AL DEPOSIT INSURANCE CORPORATION

LIABILITIES AND THE 

DEPOSIT INSURANCE FUND:

December 31,

1977

December 31,

1976

Accounts payable and accrued liabilities $ 5,947 $ 3,927

Earnest money, escrow funds, and

collections held for others 12,086 3,963

Accrued annual leave 4,316 3,791

Due insured banks:

Net assessment income credits:

Available July 1, 1977 0 379,595

Available July 1, 1978 411,947 0

Other 16,789 27,185

428,736 406,780

Liabilities incurred in failures of insured banks:

F.R.B. indebtedness 0 848,846

Other notes payable 17,761 18,691

Depositors claims unpaid 900 1,280

18,661 868,817

Total Liabilities 469,746 1,287,278

Deposit Insurance Fund 7,992,788 7,268,625

Total Liabilities and Deposit Insurance Fund $8,462,534 $8,555,903

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36 FEDERAL DEPOSIT INSURANCE CORPORATION

COMPARATIVE STATEMENT OF INCOME

AND THE DEPOSIT INSURANCE FUND (In thousands)

For the twelve 

December 31,

1977

months ended

December 31,

1976

Revenues:

Assessments earned

Interest on U.S. Government securities 

Amortization of premiums and discounts (net) 

Interest earned on notes receivable 

Other income

$ 731,468 

493,990 

9,171 

14,841 

442

$ 675,987 

444,699 

4,995 

17,697 

1,001

Total Revenues 1,249,912 1,144,379

Expenses, Losses, And Assessment Credits:

Net loss on sales of securities 

Provision for assessment credits 

Administrative and operating expenses 

Provision for insurance losses 

Nonrecoverable insurance expenses

0

412,086

89,344

20,827

3,492

105,595

379,487

74,849

28,001

3,861

Total Expenses 525,749 591,793

Net Income 724,163 552,586

Deposit Insurance Fund—January 1 7,268,625 6,716,039

Deposit Insurance Fund— December 31 $7,992,788 $7,268,625

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FINANCES OF THE CORPORATION 37

COMPARATIVE STATEMENT OF CHANGES f e d e r a l d e p o s it in s u r a n c e c o r p o r a t io n

IN FINANCIAL POSITION (In thousands)

For the twelve 

December 31,

1977

months ended

December 31,

1976

Financial Resources Were Provided From:

Operations:

Net deposit insurance assessments $ 319,382 $ 296,500

Interest on U.S. Government obligations 493,990 444,699

Interest on notes receivable 14,841 17,697

Other income 442 1,001

Less:

Administrative and operating expenses, 

net of depreciation 89,209 74,714

Nonrecoverable insurance expense 3,492 3,861

735,954 681,322

Maturity and sale of U.S. Government obligations, 

less, $105,595 net loss in 1976 3,264,625 2,606,985

Collections received on assets acquired in receivership and deposit assumption transactions, 

excluding $261,000 in 1977 and $475,000 

in 1976 in Franklin National Bank liquidation collections applied directly to the reduction of the F.R.B. indebtedness before 

F.R.B. payoff 419,095 362,579

Increase in assessment credits due banks 21,956 43,254

Net change in other assets and liabilities 10,167 1,908

Decrease (increase) in cash 14,197 (5,501)

Total financial resources provided $4,465,994 $3,690,547

Financial Resources Were Applied To:

Purchase of U.S. Government obligations $3,754,394 $2,971,611

Acquisition of Assets acquired in receivership and 

deposit assumption transactions, excluding 

$19,100 in 1977 and $82,690 in 1976 representing the increase in principal and accrued 

interest on the F.R.B. indebtedness and other 

notes payable before F.R.B. payoff 95,880 695,027

Increase in accrued interest on securities 7,844 23,909

Payment of F.R.B. indebtedness: 

Principal 389,000 0

Accrued Interest 218,876 0

Total financial resources applied $4,465,994 $3,690,547

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38 FEDERAL DEPOSIT INSURANCE CORPORATION

NOTES TO FINANCIAL STATEMENTS

GENERAL

These statements do not include accountability for assets and liabilities of 

closed insured banks for which the Corporation acts as receiver or liquidating 

agent. Periodic and final accountability 

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

These statements do include transactions in unaudited collection and disbursement reports from liquidators of 

Franklin National Bank, Farmers Bank of 

the State of Delaware, and First State 

Bank for the month of December 1977. 

Also included were transactions reflected 

in unaudited collection and disbursement 

reports from liquidators of Franklin National Bank, Northeast Bank of Houston, 

The Hamilton Bank and Trust Company, 

and Centennial Bank for the month of 

December 1976.

ACCOUNTING POLICIES

U.S. Government obligations. Securities are shown at amortized cost which is 

the purchase price of the securities less 

the amortized premium or plus the accreted discount. Such amortization and 

accretion are computed on a daily 

straight-line basis from the date of acquisition to the date of maturity.

Deposit insurance assessments. The 

Corporation assesses insured banks at the 

rate of 1/12 of one percent per year on 

the bank's average deposit liability less 

certain exclusions and deductions. Assessments are due in advance for each 6- 

month period and credited to income 

when earned each month. Each July 1, 

66-2/3 percent of the Corporation's net 

assessment income from the prior calendar 

year is made available to insured banks as 

a prorated credit against the current assessment due.

Reserve for losses. It is the policy of 

the Corporation to establish an estimated

reserve for loss at the time a bank fails. 

These reserves are reviewed every 6 

months and adjusted as required, based 

on the financial developments which 

accure during each 6-month period. The 

Corporation does not state its estimated 

contingent liability for unknown future 

bank closings because such estimates are 

impossible to make. The Corporation's 

contingent liability for eventual net losses 

depends upon factors which cannot be 

assessed until or after a bank has actually 

failed. The Corporation's entire deposit 

insurance fund and borrowing authority 

are available, however, for such contingencies.

Depreciation. The headquarters building is depreciated on a straight-line basis 

over a 50-year estimated life. The cost of 

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

Reclassifications. Certain reclassifications have been made in the 1976 financial statements to conform to the presentation used in 1977.

U.S. GOVERNMENT OBLIGATIONS

Investmentinsecuritiesat December 31, 

1977 and 1976 was as follows:

(in thousands)

1977 1976

Face Value $7,119,458 $6,622,083

Purchase Price 7,132,322 6,629,974

Market Value 7,073,876 6,867,815

EQUITY IN ASSETS ACQUIRED FROM

PAYOFF CASES AND INSURED

BANKS ASSISTED UNDER SECTION

13(e) OF THE FDI ACT

Equity in assets acquired under agreements with insured banks totaled $1,171 

million and $1,664 million at December 

31, 1977 and 1976, respectively. Of these 

totals, approximately $537 million for 

1977 and $849 million for 1976 represent equity in assets acquired as a result 

of the closing of Franklin National Bank 

on October 8, 1974.

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Federal Reserve Bank of St. Louis
FINANCES OF THE CORPORATION 39

Reserve for losses. As of December 31, 

1977 and 1976, the Corporation's reserve 

for losses on payoff cases and on banks 

assisted under Section 13(e) of the FDI 

Act were as follows:

D epositors claims paid 

Loans and assets purchased 

Assets purchased o u trig h t

1977

$ 16,032,000 

210,70 9 ,4 00 

18.000.000 

$244,741,400

$ 21,07 3 ,0 0 0 

198,328,300 

4 .0 0 0 .00 0 

$223,401,300

Notes purchased to facilitate deposit

assumptions. The Corporation's outstanding principal on notes receivable, purchased to facilitate deposit assumptions 

and mergers of closed insured banks 

under Section 13(e) of the Federal Deposit Insurance Act, at December 31,

1977 and 1976 was:

1977 1976

C rocker N ational C orp o ra tio n 

European-A m erican Bank and

-

$ 50,00 0 ,0 0 0

Trust Com pany - 100,000,000

Clearing Bank

Marine N ational Exchange

1,500,000 1,500,000

Bank o f M ilw aukee 

First Tennessee N ational

1,500,000 2,500,0 0 0

C orp oratio n 16,000,000 16,000,000

First Tennessee N ational Bank 

Bank Leumi T rust Com pany

8,000,0 0 0 8,000,0 0 0

o f New Y o rk 10,000,000 10,000,000

New Orleans Bancshares, Inc. 

Southeast Banking

7,500,000 7,500 ,0 0 0

C orp oratio n - 5,000,0 0 0

European-A m erican Bancorp. 8 5 ,0 0 0 ,00 0 -

$129,500,000 $200,500,000

EQUITY IN ASSETS ACQUIRED FROM

INSURED BANKS UNDER SECTION

13(c) OF THE FDI ACT

The Corporation's outstanding principal on notes receivable, purchased under 

authority of Section 13(c) of the Federal 

Deposit Insurance Act, at December 31,

1977 and 1976 was:

U n ity Bank and T rust C om pany 

Bank o f the C om m onw ealth

$ 1,500,000 

35 ,5 0 0 ,0 0 0

$ 1,500,000 

35,500 ,0 0 0

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

LIABILITIES INCURRED IN FA ILURES OF INSURED BANKS

Federal Reserve Bank of New York

indebtedness. On October 7, 1977, the 

Corporation paid the Federal Reserve 

Bank of New York the outstanding principal balance of $389 million due on the 

Federal Reserve Bank of New York indebtedness plus $219 million of interest 

that was accrued for 1,095 days at the 

rate of 7.52 percent simple interest per 

annum on the unpaid principal balance 

and after deducting $15 million for certain out-of-pocket expenses incurred by 

the Corporation as provided in the agreement of sale.

Other notes payable. These amounts 

represent the unpaid principal and accrued interest on the Corporation's unsecured notes designated "5.775% Series 

A Notes due January 1, 1988" and 

"5.775% Series B Notes due January 1, 

1990" as set forth in the consents, exchange agreement, and agreements of 

release and satisfaction related to the 

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

CONTINGENT LIABILITIES

Southern Bancorporation note receivable. On December 9, 1976, Southern 

Bancorporation repaid in full the $8 m illion note that the Corporation had purchased on September 24, 1974. Southern 

Bancorporation financed this transaction 

by obtaining a loan from First Union National Bank of North Carolina. To induce 

FUNB to enter the loan agreement, the 

FDIC agreed to guarantee the payment of

75 percent of the unpaid principal 

amount of the loan on the terms and conditions set forth in the guarantee agreeemnt. As of December 31, 1977 and 

1976, FUNB's outstanding principal due 

on the loan is $7.4 million and $8.0 million, respectively.

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r

ENFORCEMENT PROCEEDINGS

PART TWO

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43

Actions to Terminate Insured Status

Federal Deposit Insurance Act - Section 8(a)

The Corporation has issued 30 term ination of 

insurance actions since January 1971; 3 were 

issued during 1977. In each case, the bank was 

found to be in unsafe and unsound condition.

Also, a number of other term ination of insurance actions have been recommended but were 

withdrawn prior to action by the Board because of 

favorable interim affirm ative actions on the part of 

either the banks or management-shareholders. As 

in the case of cease-and-desist actions, the threat 

of term ination of insurance has caused many affirm ative action programs on the part of banks 

which negated the need for finalizing the actions.

Summary of cases

Bank No.

28 Deposits— $12.6 m illion

Notice of intention to terminate insured status issued on A pril 19, 1977. 

Bank ordered to provide acceptable management, eliminate or reduce adversely 

classified assets, reduce overdue loans to a 

specific level, eliminate concentrations of 

credit, correct violations of laws and regulations, increase capital, provide a plan 

for controlling expenses, eliminate loan 

documentation deficiencies, lim it its loan 

volume to a specific relationship to deposits, adopt and follow an acceptable 

w ritten loan policy, discontinue cash dividends, adopt acceptable internal control 

and audit procedures, adopt a policy prohibiting preferential treatm ent to insiders, 

and obtain a certain level of capital if 

continued insured status was desired.

29 Deposits— $27.6 m illion

N o tic e o f in te n tio n to terminate 

insured status issued on September 19, 

1977. Bank ordered to provide acceptable 

management; not to extend credit directly or indirectly to or fo r the benefit 

of the controlling shareholder, his relatives, or related interests; to eliminate or 

reduce adversely classified assets; to elim ­

inate concentrations of credit; to correct 

violations of laws and regulations; to 

adopt and follow acceptable loan and investment policies; to discontinue cash 

dividends; to adopt an investment policy 

to provide adequate liq u id ity; to elim ­

inate loan documentation deficiencies; to 

provide additional capital; and to obtain a

Bank No.

certain level of capital if continued insured status was desired.

Order terminated on September 24, 

1977 follow ing a sale of controlling interest and agreement to remove a significant 

volume of losses.

30 Deposits— $8.8 m illion

Notice o f intention to terminate insured status issued on December 16, 

1977. Bank ordered to provide acceptable 

management; eliminate or reduce adversely classified assets; obtain current 

credit and other supporting documentation fo r all existing loans and other extensions of credit; eliminate concentrations 

of credit; eliminate w ith o u t loss or liability to the bank all overdrafts to and proh ib it future overdrafts to directors, 

officers, employees, or their interests; 

establish specific parameters fo r extensions of credit to insiders; restrict loan 

volume; adopt and adhere to an internal 

audit program and loan and investment 

policies; develop adequate liq u id ity; correct internal control deficiencies and violations of laws, rules, and regulations; 

discontinue cash dividends; and obtain a 

certain level of capital if continued insured status was desired.

Cease-and-Desist Actions

Federal Deposit Insurance Act - Section 8(b)

The Corporation has issued 105 cease-and-desist 

actions since January 1971; 44 were issued during 

1977. In addition, 13 tem porary cease-and-desist 

orders have been issued, including 8 issued during 

1977. In each case, the bank was ordered to cease 

and desist from unsafe and unsound practices and 

to take affirm ative action to correct certain conditions. Several such actions are now in various 

stages of processing.

In addition to these cases, a number of other 

cease-and-desist actions have been authorized by 

the Corporation's Board o f Directors which were 

never consented to by banks or adopted in final 

form by the Board because o f favorable interim 

affirm ative actions by either the banks or management-shareholders. In effect, the threat of a ceaseand-desist action has caused many banks to undertake favorable affirm ative action programs, which 

negated the need fo r finalizing the authorized 

cease-and-desist actions.

Section 8(m) of the Federal Deposit Insurance 

A ct provides the State supervisory authorities w ith

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44 FEDERAL DEPOSIT INSURANCE CORPORATION

the op portunity to initiate independent corrective 

action after the Corporation has served notice of 

intent to take formal action. While in most cases 

the State supervisory authorities choose to join the 

Corporation in any such action, some State banking laws do provide fo r independent cease-anddesist actions which have been utilized in a 

number of instances— either prior or subsequent to 

notice of intent by the Corporation. A compilation of these State supervisory authority ceaseand-desist actions is not maintained by the FDIC, 

but the corrective orders are analyzed and checked 

for compliance on a case-by-case basis at each 

examination of the involved banks.

Summary of cases

Bank No.

62 Deposits— $8.5 m illion

Consent cease-and-desist order entered 

on January 5, 1977. Bank ordered to reduce adversely classified assets and delinquent loans, adopt an appropriate w ritten 

loan policy, prohibit overdrafts to the 

bank's official fam ily, and com ply w ith 

laws, rules, and regulations.

63 Deposits— $6.8 m illion

Consent cease-and-desist order entered 

on February 1, 1977, follow ing the issuance o f a temporary cease-and-desist 

order. Bank ordered to cease and desist 

from extending credit of any kind, direct 

or indirect, in any am ount in excess of 

$5,000 to any insider of the bank or person related to an insider, and from entering into any business transaction in any 

amount in excess of $5,000 w ith any insider or person related to an insider of the 

bank.

64 Deposits— $18.7 m illion

Consent cease-and-desist order entered 

on February 1, 1977. Bank ordered to reduce adversely classified assets; prepare a 

list of, and eliminate, overdrafts to insiders; inject new capital; provide adequate internal controls, outside audit, and 

loan policy; and com ply w ith laws, rules, 

and regulations, including consumer protection laws.

65 Deposits— $6.2 m illion

Consent cease-and-desist order entered 

on February 1, 1977. Bank ordered to 

take affirm ative action w ith regard to a 

comprehensive audit, develop and implement adequate internal controls, comply 

fu lly and completely w ith consumer protection statutes, and correct all other violations of laws, rules, and regulations.

Bank No.

66 Deposits— $7.7 m illion

Consent cease-and-desist order entered 

on February 1, 1977. Bank ordered to 

provide acceptable management; reduce 

classified assets; adopt an appropriate 

w ritten loan policy; comply w ith laws, 

rules and regulations; eliminate adversely 

classified loans to insiders and loans to 

persons residing outside the bank's normal trade area; reduce the volume of 

loans to the bank's official fam ily and 

delinquent loans; maintain adequate cash 

reserves; reduce salaries, bonuses, expense 

allowances, and management fees to the 

president and one director; and discontinue cash dividends.

67 Deposits— $16.6 m illion

Consent cease-and-desist order entered 

on February 1, 1977. Bank ordered to 

provide acceptable management, reduce 

adversely classified assets, inject capital, 

comply w ith laws, adopt and fo llo w acceptable loan and investment policies, 

reduce credit extended to insiders, reduce 

total overdue loans, and discontinue cash 

dividends.

68 Deposits— $18.9 m illion

Consent cease-and-desist order entered 

on March 15, 1977. Bank ordered to provide acceptable management, make independent and realistic appraisals of real 

estate maintained as collateral, eliminate 

assets classified "loss" and "d o u b tfu l," 

discontinue loans to certain insiders, lim it 

lines of credit to and reduce concentrations of credit to a specific relationship to 

capital and reserves, inject capital, elim ­

inate loan documentation deficiencies, 

prohibit repurchase o f asset participations 

sold w ith o u t recourse, restrict participations sold to a nonrecourse basis, comply 

w ith laws, and discontinue cash dividends.

69 Deposits— $9.3 m illion

Consent cease-and-desist order entered 

on June 27, 1977. Bank ordered to elim ­

inate "loss" and 50 percent of "d o u b tfu l" classifications, prohibit extensions of 

credit to certain insiders, lim it lines of 

credit to a specific relationship to capital 

and reserves, reduce concentrations of 

credit, inject capital, eliminate loan docum e n ta tio n exceptions, prohibit repurchase of asset participations sold w ithou t 

recourse, restrict participations sold to a 

nonrecourse basis, com ply w ith laws, and 

discontinue cash dividends.

70 Deposits— $9.5 m illion

Consent cease-and-desist order entered

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CEASE-AND-DESIST ACTIONS 45

on February 15, 1977. Bank ordered to 

provide acceptable management, reduce 

adversely classified assets, establish repayment schedules fo r loans, eliminate loan 

documentation exceptions, reduce concentrations of credit, discontinue overdrafts to insiders, reduce total outstanding loan volume, adopt w ritten loan and 

investment policies, adopt a program to 

provide adequate liq uidity, inject capital, 

adopt a w ritten internal audit program, 

comply w ith laws and regulations, and 

discontinue cash dividends.

71 Deposits— $12.0 m illion

Consent cease-and-desist order entered 

on March 15, 1977. Bank ordered to provide acceptable management; reduce classified assets and overdue loans; adopt 

w ritten lending, collection, and investment policies; discontinue participation 

transactions w ith and reduce deposit balances w ith related banks; eliminate adversely classified loans to insiders; reduce 

loan volume; restrict salaries, fees, bonuses, and expense allowances to amounts 

commensurate w ith services performed 

by directors, officers, and employees; correct violations of law; discontinue cash 

dividends; and inject capital.

72 Deposits— $14.6 m illion

Consent cease-and-desist order entered 

on March 15, 1977. Bank ordered to provide acceptable management; reduce adversely classified assets; adopt lending, 

collection, and investment policies; reduce remuneration paid to the bank's 

president; discontinue participation transactions and reduce deposit balances w ith 

related banks; eliminate loans originating 

outside the bank's normal trading area; 

eliminate adversely classified loans to insiders; reduce loan volume; inject capital; 

correct violations of law; and discontinue 

cash dividends.

73 Deposits— $15.2 m illion

Consent cease-and-desist order entered 

on April 5, 1977. Bank was ordered to 

provide acceptable management; reduce 

adversely classified assets; adopt acceptable lending, collection, and investment 

policies; reduce concentrations o f credit; 

correct violations of law; correct loan 

docum entation deficiencies; implement 

proper accrual accounting methods; disclose to shareholders all details concerning an insider-operated credit life insurance agency on the bank's premises, and 

reimburse the bank for use of its premises, personnel, and equipment; and prohibit extensions of credit to a certain 

insider.

74 Deposits— $10.5 m illion

Consent cease-and-desist order entered 

on June 13, 1977 after a preliminary 

hearing. Bank ordered to reduce adversely 

classified assets; eliminate extensions of 

credit in the form of overdrafts to employees, lim it its trade area; provide adequate collateral and credit file documenta tio n , internal controls, and outside 

audit; inject new capital; provide acceptable management; and com ply w ith laws, 

rules, and regulations.

75 Deposits— $9.1 m illion

Consent cease-and-desist order entered 

on April 19, 1977. Bank ordered to comply w ith insider regulations; reduce adversely classified assets; inject new capital; provide adequate liq uidity, comply 

w ith laws, rules, and regulations; adopt a 

loan policy; and discontinue cash dividends.

76 Deposits— $24.7 m illion

Consent cease-and-desist order entered 

on April 19, 1977. Bank ordered to cease 

and desist from violations of consumer 

protection laws and to correct these violations and develop procedures to assure 

future compliance.

77 Deposits— $3.0 m illion

Consent cease-and-desist order entered 

on May 3, 1977 to assure additional correction follow ing simultaneous discontinuance of a section 8(a) citation. Bank 

ordered to provide acceptable management; reduce adversely classified assets, 

restrict loan volume and type of securities 

investments; lim it insider loans and elim ­

inate those adversely classified; provide 

adequate liq u id ity; inject new capital; 

comply w ith laws, rules, and regulations, 

adopt a loan policy; and discontinue cash 

dividends.

78 Deposits— $6.8 m illion

Consent cease-and-desist order entered 

on May 23, 1977. Bank ordered to provide acceptable management; reduce adversely classified assets; adopt w ritten 

lending, collection, and investment policies; inject new capital; correct violations; 

reduce loan volume; and discontinue cash 

dividends.

79 Deposits— $7.3 m illion

Consent cease-and-desist order entered 

on May 23, 1977. Bank ordered to correct 

violations Of the Truth-in-Lending A ct 

and com ply w ith that act in the future.

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46 FEDERAL DEPOSIT INSURANCE CORPORATION

Bank No.

80 Deposits— $21.8 m illion

Consent cease-and-desist order entered 

on June 13, 1977. Bank ordered to provide acceptable management; adopt a 

loan policy; reduce adversely classified 

assets and concentrations of credit; restrict insider loans; eliminate use of methods that avoid recognition of past due 

loans; com ply w ith laws, rules, and regulations; provide administration of the 

trust department; and discontinue cash 

dividends.

81 Deposits— $20.0 m illion

Consent cease-and-desist order entered 

on June 13, 1977. Bank ordered to provide acceptable management, reduce adversely classified assets, adopt a loan policy, reduce loan volume, and discontinue 

cash dividends.

82 Deposits— $29.8 m illion

Consent cease-and-desist order entered 

on June 13, 1977. Bank ordered to reduce adversely classified assets, reduce 

overdue loans, eliminate loan documentation deficiencies, and adopt loan policy.

83 Deposits— $12.6 m illion

Consent cease-and-desist order entered 

on June 13, 1977 to replace a temporary 

cease-and-desist order. Bank ordered to 

reduce loans to the chairman and his interests, prohibit additional credit to the 

chairman until his loans were reduced 

below that level, restrict opening an approved but unopened branch office until 

changes in the plans for the branch were 

approved, provide acceptable management, reduce classified assets, increase 

capital to a certain level, adopt loan and 

investment policies, comply w ith laws 

and regulations, and discontinue cash dividends.

84 Deposits— $10.5 m illion

Consent cease-and-desist order entered 

on June 13, 1977. Bank ordered to prov id e acceptable management, provide 

a d d itio n a l directors, reduce adversely 

classified assets and overdue loans, adopt 

a loan policy, and discontinue cash dividends.

85 Deposits— $9.4 m illion

Consent cease-and-desist order entered 

on June 27, 1977 to replace a tem porary 

order to cease and desist. Bank ordered to 

reduce adverse classifications; adopt w ritten lending policies; collect outstanding 

out-of-area loans and lim it such loans in 

the future; lim it credits to or fo r the 

benefit of one borrower; eliminate loan 

d o c u m e n ta tio n deficiencies; prohibit

repurchase of participations sold w ith o u t 

recourse, recording on the books any liability fo r repurchase agreements ou tstanding; correct all violations of laws and 

regulations, including consumer law violations; inject new capital; review all compensation to bank officers; lim it bonuses 

and expense allowances to or for officers; 

review income and expense statements 

m onthly; disclose to the shareholders all 

details on an insider credit life insurance 

agency operated on the premises; require 

approval by two-thirds of the shareholders of any decision not to retain such 

income for the bank, but in any event 

provide reasonable reimbursement to the 

bank for use o f premises, personnel, and 

equipment; discontinue cash dividends; 

comply w ith a separate letter agreement 

between the bank and the chartering 

a u th o r ity ; obtain reimbursement for 

nonbank-related expenses paid to the fo rmer controlling shareholder and also require the form er control owners to repay 

such expenses; make efforts to collect 

loans made to or related to the form er 

control owners and prohibit any new 

credit to these individuals; and review and 

possibly revise the interest rate being paid 

on a certificate of deposit held by the 

present control owners.

86 Deposits— $13.3 m illion

Consent cease-and-desist order entered 

on July 14, 1977. Bank ordered to provide acceptable management, inject new 

capital, adopt and adhere to acceptable 

w ritten lending and investment policies, 

reduce adverse classifications, eliminate 

overdrafts to insiders, eliminate certain 

insider loans, and comply w ith laws, 

rules, and regulations.

87 Deposits— $7.2 m illion

Consent cease-and-desist order entered 

on July 28, 1977, replacing a temporary 

cease-and-desist order. Bank ordered to 

correct violations of law, review the compensation paid to the chairman of the 

board and his interests, reduce classified 

assets, continue efforts to obtain fid e lity 

coverage, and discontinue dividends.

88 Deposits— $51.0 m illion

Consent cease-and-desist order entered 

on September 9, 1977. Bank ordered to 

correct violations of consumer protection 

laws and com ply w ith these laws in the 

future.

89 Deposits— $5.6 m illion

Consent cease-and-desist order entered 

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CEASE-AND-DESIST ACTIONS 47

rary order to cease and desist. Bank 

ordered to reduce loan volume; adopt 

w ritten lending policies; collect outstanding out-of-area loans and lim it these loans 

in the future; lim it credit to or fo r the 

benefit o f tw o or more obligors where 

payment is based upon the assets of or 

revenue derived from the same source; 

eliminate loan documentation deficiencies; prohibit repurchase of participations 

sold w ith o u t recourse; record on the 

books any lia bility fo r repurchase agreements outstanding; correct all violations 

of laws and regulations; review and restrict all compensation to and expense 

allowances of directors and officers; restrict payment of cash dividends; comply 

w ith a separate letter agreement between 

the bank and the chartering authority; 

make efforts to collect loans made to or 

related to the form er control owners and 

prohibit any new credit to these individuals; correct internal control deficiencies; 

and retain future and seek reimbursement 

of past commissions from a credit life insurance business operated on the premises 

by present and form er insiders.

90 Deposits— $8.7 m illion

Consent cease-and-desist order entered 

on October 25, 1977. Bank ordered to 

provide acceptable management; reduce 

adversely classified assets and loan volume; restrict loans, salaries, and bonuses 

to insiders; restrict participation loans; 

correct internal control and loan documentation deficiencies; adopt acceptable 

loan policy; and com ply w ith laws, rules, 

and regulations.

91 Deposits— $7.3 m illion

Consent cease-and-desist order entered 

on October 25, 1977 to replace a tem porary order to cease and desist. Bank ordered to reduce adverse classifications 

and loan volume; adopt w ritten lending 

policies; collect outstanding out-of-area 

loans and lim it such loans in the future; 

lim it credits to insiders and credit to or 

for the benefit of tw o or more obligors 

where payment is based upon the assets 

of or revenue derived from the same 

source; prohibit repurchase of participations sold w ith o u t recourse; record on the 

books any lia b ility fo r repurchase agreements outstanding; correct all violations 

of laws and regulations; review and restrict all compensation to and expense 

allowances of directors and officers; disclose to the shareholders all details of a 

credit life insurance agency operated on 

the premises by present and form er insiders; require approval by two-thirds of 

the shareholders of any decision not to 

retain such income for the bank but in 

any event to obtain reasonable reimbursement to the bank fo r use of premises, 

personnel, and equipment; restrict payment of cash dividends; and make efforts 

to collect loans made to or related to the 

form er control owners and prohibit any 

new credit to these individuals.

92 Deposits— $6.6 m illion

Consent cease-and-desist order entered 

on November 14, 1977. Bank ordered to 

provide acceptable management; reduce 

adversely classified assets and loan volume; inject new capital; adopt loan and 

investment policies; com ply w ith laws, 

rules, and regulations; provide adequate 

internal controls and loan valuation reserve; and discontinue cash dividends.

93 Deposits— $8.8 m illion

Consent cease-and-desist order entered 

on November 14, 1977. Bank ordered to 

prohibit a form er executive officer from 

participating in the affairs of the bank as 

his request fo r such participation was 

denied by the Corporation under Section 

19 of the FDI Act.

94 Deposits— $4.6 m illion

Consent cease-and-desist order entered 

on November 14, 1977. Bank ordered to 

reduce adversely classified assets; restrict 

loans involving affiliates; com ply w ith 

laws, rules, and regulations; adopt a loan 

policy; inject new capital; and discontinue cash dividends.

95 Deposits— $133.2 m illion

Consent cease-and-desist order entered 

on November 30, 1977. Bank ordered to 

provide executive committee supervision; 

provide acceptable management; reduce 

adversely classified assets and concentrations of credit; restrict credit extended to 

insiders or any obligor and their related 

interest; adopt a loan policy; inject new 

capital; and com ply w ith laws, rules, and 

regulations.

96 Deposits— $11.2 m illion

Consent cease-and-desist order entered 

on December 16, 1977 to replace a tem ­

porary order to cease and desist. Bank 

ordered to provide acceptable management; reduce adverse classifications, loan 

volume, and concentrations of credit; 

adopt w ritten lending policies; collect 

outstanding out-of-area loans and lim it 

future out-of-area loans; lim it credits to 

insiders or fo r the benefit of tw o or more 

obligors where payment is based on the

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assets of or revenue derived from the 

same source; eliminate loan documentation deficiencies; prohibit repurchase of 

participations sold w ith o u t recourse; record on the books any lia bility fo r repurchase agreements outstanding; correct all 

violations of laws and regulations; inject 

new capital; review and restrict all compensation to and expense allowances of 

directors and officers; review income and 

expense statements m onthly; disclose to 

the shareholders all details of a credit life 

insurance agency operated on the premises by present and form er insiders, and 

require approval by two-thirds of the 

shareholders of any decision not to retain 

such income for the bank, but in any 

event require reasonable reimbursement 

to the bank for use of premises, personnel, and equipment; restrict payment 

of cash dividends; com ply w ith a separate 

letter agreement between the bank and 

the chartering authority; make efforts to 

collect loans made to or related to the 

form er control owners and prohibit any 

new credit to these individuals; prohibit 

use of brokered deposits; correct internal 

control deficiencies; and follow accurate 

accrual accounting procedures.

97 Deposits— $4.4 m illion

Consent cease-and-desist order entered 

on December 16, 1977. Bank ordered to 

provide acceptable management; reduce 

adversely classified assets, loan volume, 

and overdue loans; adopt and adhere to 

w ritten loan policies; com ply w ith laws 

and regulations; eliminate out-of-territory 

loans; maintain adequate cash reserves; inject new capital; and discontinue cash 

dividends.

98 Deposits— $32.2 m illion

Consent cease-and-desist order entered 

on December 16, 1977. Bank ordered to 

provide acceptable management; reduce 

adversely classified assets, loan volume, 

and concentrations of credit; restrict 

loans to any obligor or related interests; 

revise its loan policy; reduce other real 

estate; conserve earnings by reduction of 

expenses; correct internal control deficiencies; com ply w ith laws, rules, and 

regulations; inject new capital; and discontinue dividends.

99 Deposits— $6.2 m illion

Consent cease-and-desist order entered 

on December 16, 1977. Bank ordered to 

provide acceptable management, restrict 

extensions of credit to any one obligor 

and related interests, restrict present and

future obligations of a certain insider and 

the bank's audit firm , adopt a w ritten 

loan policy, correct violations of laws and 

regulations, eliminate internal control and 

loan documentation deficiencies, restrict 

loan volume, retain credit life and accident insurance commissions, lim it cash 

dividends, and com ply w ith the provisions of an outstanding State order.

100 Deposits— $6.3 m illion

Consent cease-and-desist order entered 

on December 16, 1977. Bank ordered to 

reduce adversely classified and criticized 

assets and loan volume; restrict loans to 

one obligor and related interests; adopt 

and com ply w ith loan and investment 

policies; correct violations of laws, rules, 

and regulations; inject new capital; and 

discontinue dividends.

101 Deposits— $29.2 m illion

Consent cease-and-desist order entered 

on December 16, 1977. Bank ordered to 

provide acceptable management, reduce 

adversely classified assets and loan volume; adopt and com ply w ith loan and 

investment policies; restrict compensation 

and expense allowances paid directors; 

collect classified loans to insiders and restrict other loans to insiders; disclose and 

restrict a credit life insurance business 

operated on the premises by an insider; 

inject new capital; com ply w ith laws, 

rules, and regulations; and discontinue 

cash dividends.

102 Deposits— $23.5 m illion

Cease-and-desist order entered on 

December 16, 1977. Bank ordered to provide acceptable management; inject new 

capital; reduce adversely classified loans, 

loan volume, and concentrations of credit; restrict credit extended to one obligor 

and his interests; collect and prohibit 

overdrafts to insiders; adopt a loan policy; disclose fees paid to the law firm of a 

director; and comply w ith laws, rules, and 

regulations.

103 Deposits— $9.6 m illion

Cease-and-desist order entered on December 16, 1977. Bank ordered to provide acceptable management; reduce adversely classified assets and overdue loans; 

adopt a loan policy; lim it overdraft volume; collect and prohibit overdrafts to 

insiders; adopt an overdraft policy; collect and prohibit new loans to a certain 

borrower; restrict extensions of credit to 

insiders and out-of-area borrowers; lim it 

fees and compensation to directors; elim ­

inate loan documentation deficiencies;

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

Bank No.

obtain fid e lity coverage; obtain an outside audit; com ply w ith laws, rules, and 

regulations; develop liq u id ity provisions; 

and discontinue cash dividends.

104 Deposits— $4.1 m illion

Consent cease-and-desist order entered 

on December 16, 1977. Bank ordered to 

provide acceptable management; reduce 

adversely classified assets and overdue 

loans; eliminate out-of-area loans; adopt 

acceptable loan policies; comply w ith 

laws, rules, and regulations; develop audit 

procedures; disclose and restrict a credit 

life insurance business operated on bank 

premises by an insider; discontinue dividends; and inject new capital.

105 Deposits— $4.5 m illion

Consent cease-and-desist order entered 

on December 16, 1977. Bank ordered to 

provide acceptable management; reduce 

adversely classified assets and overdue 

loans; comply w ith laws, rules, and regulations; adopt a loan policy; inject new 

capital; and discontinue dividends.

Federal Deposit Insurance A ct— Section 8(c)

Temporary Cease and Desist Actions

6 Deposits— $12.6 m illion

Temporary cease-and-desist order issued on March 17, 1977. Bank was ordered to cease and desist from extending 

any credit to or for the benefit of the 

bank's chairman of the board or to any 

individual or entity whereby the proceeds 

of such credit would accrue, directly or 

indirectly, to the benefit of the chairman 

of the board. The bank was also ordered 

to cease and desist from opening a previously approved but unopened branch 

office pending com pletion of these administrative proceedings.

A permanent cease-and-desist order 

was issued on June 13, 1977.

7 Deposits— $7.0 m illion

Temporary cease-and-desist order issued on A pril 1, 1977. Bank and its o fficials were ordered to cease and desist 

from offering, selling, and offering for 

sale and transferring on the bank's books 

any stock of subject bank owned directly, 

indirectly, or beneficially by any of the 

directors; making any further payments 

of any kind under a lease between the 

bank and a partnership composed of the 

directors; and entering into any business 

transactions or extension of credit w ith

any bank insider or person related to a 

bank insider.

The temporary order was terminated 

on June 13, 1977.

8 Deposits— $11.2 m illion

Temporary cease-and-desist order issued on May 1 1, 1977. Bank was ordered 

to cease and desist from entering into any 

business transaction w ith and from extending direct or indirect credit to or for 

the benefit o f the bank's form er chairman 

of the board, his wife, or any persons related to them.

A permanent cease and desist order 

was issued on December 16, 1977.

9 Deposits— $5.6 m illion

Temporary cease-and-desist order issued on May 11, 1977. Bank was ordered 

to cease and desist from entering into any 

business transaction w ith and from extending direct or indirect credit to or for 

the benefit of the bank's form er chairman 

of the board, his wife, or any person related to them.

A permanent cease and desist order 

was issued on October 25, 1977.

10 Deposits— $3.4 m illion

Temporary cease-and-desist order issued on May 1 1, 1977. Bank was ordered 

to cease and desist from entering into any 

business transaction w ith and from extending direct or indirect credit to or for 

the benefit of the bank's executive vice 

president, his wife, or any person related 

to them.

The tem porary order was outstanding 

at year-end.

11 Deposits— $9.4 m illion

Temporary cease-and-desist order issued on May 1 1, 1977. Bank was ordered 

to cease and desist from entering into any 

business transaction w ith and from extending any direct or indirect credit to or 

for the benefit of the form er chairman of 

the board, his wife, or any person related 

to them.

A permanent cease and desist order 

was issued on June 17, 1977.

12 Deposits— $7.3 m illion

Temporary cease-and-desist order issued on May 11, 1977. Bank was ordered 

to cease and desist from entering into any 

business transaction w ith and from extending any direct or indirect credit to or 

for the benefit of the form er chairman of 

the board, his wife, or any person related 

to them.

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

A permanent cease and desist order 

was issued on October 25, 1977.

13 Deposits— $102.6 m illion

Temporary cease-and-desist order issued on September 19, 1977. Bank was 

ordered to cease and desist from entering 

into any business transactions which exceed $10,000 in the aggregate w ith the 

chairman of the board, his interests, or 

any person related to him.

The order was outstanding at year-end.

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Federal Reserve Bank of St. Louis
MERGER DECISIONS OF THE CORPORATION

PART THREE

V J

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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
BANKS INVOLVED IN ABSORPTIONS APPROVED BY 

THE FEDERAL DEPOSIT INSURANCE CORPORATION IN 1977

53

State T o w n o r C ity _______________ Bank_________________________________Page

Alabam a A shford The Farmers & Merchants Bank (change title

to The Farmers & Merchants Bank of

A shford) 111

H ouston C oun ty Bank (in organization) 111

C alifornia D ow ney G olden State Bank 108

El T o ro Mission Bank 76

Los Angeles F irst Pacific Bank 89

U nited C alifornia Bank 112

Westac, Inc. (in organization) 112

O xnard Com m ercial and Farmers National Bank 105 

San Francisco The Bank o f C alifornia, National

Association 92

The Chartered Bank o f London 105 

The Sanwa Bank o f C alifornia (change title

to G olden State Sanwa Bank) 108

The S um itom o Bank o f C alifornia 92 

Santa Monica Ocean State Bank (change title to F irst

Pacific Bank) 89

V entura A m erican Com m ercial Bank 64

V entu ra B ranch— The Bank of C alifornia 64

V ista S outhw est Bank 76

C onnecticut B ridgeport James Staples and C om pany 93

M onroe *T h e M onroe Bank and T ru st C om pany 64

Shelton The V alley Bank and T rust C om pany 93

S tra tfo rd * Bank o f S tra tfo rd 104 

The NA B B a n k & T rust C om pany (in 

organization; change title to The

N o rth A m erican Bank & T rust Com pany) 104

W o lco tt N o rth A m erican Bank and T ru s t Com pany 64 

The N orth Am erican Bank and T rust

C om pany 104

Delaware W ilm ing ton Peoples Bank & T ru st Com pany 111

Peoples C orp ora tio n (in organization) 111

Florida Bal H arbour Sun Bank o f Bal H arbour, N ational

Association

Boca R aton F irst M arine Bank of Boca R aton 109

B o yn to n Beach F irst Bank and T ru st (change title to F irst 110 

Bank and T rust, Palm Beach C ounty)

B row ard C oun ty B arnett Bank of Jacaranda 109

(P.O. P lantation) 109 

Casselberry Com Bank/Casselberry (change title to

Com B ank/S em inole C oun ty) 109

Clearwater C o m m u n ity Bank o f Clearwater 110

C o m m u n ity Bank of C ountryside 110

Coral Gables Sun Bank o f Coral Gables 109

Dade C oun ty Sun Bank o f West Dade 109 

(P.O. M iam i)

Davenport D avenport Flagship Bank 109

D aytona Beach B arnett Bank o f D aytona Beach 109

Sun Bank o f Volusia C oun ty 109

D aytona Beach Shores Sun Bank o f D aytona Bank Shores 109 

Delray Beach B arnett Bank o f Delray Beach,

N ational A ssociation 110

F irst Bank, Delray Beach, Florida 109

* Banks absorbed in "emergency" approvals under provisions of section 1 8(c).

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

State Town or City Bank Page

Escambia C oun ty B arnett Bank o f N o rth Pensacola 109 

(P.O. Pensacola)

F o rt Lauderdale B arnett Bank o f F o rt Lauderdale 109

B arnett Bank o f Port Everglades 109

B arnett Bank o f R iverland 109

F o rt Pierce Sun Bank o f F o rt Pierce 109

Sun Bank o f St. Lucie C o u n ty 109 

Haines C ity Flagship Bank of Haines C ity (change title

to Flagship Bank o f Polk C ounty) 109

Highlands C ounty B arnett Bank o f Lake Placid 110 

(P.O. Lake Placid)

H illsborough C oun ty Landm ark Bank o f N o rth Tam pa 110 

(P.O. Tampa)

H o lly H ill Sun Bank o f H o lly H ill 109

H o llyw o o d B arnett Bank o f H o llyw o o d 109

B arnett Bank o f West H o llyw o o d 109 

Kendall Capital Bank o f Kendale 96

Lake A lfre d Flagship Bank of Lake A lfre d 109

Largo C o m m u n ity Bank o f Largo 110

Lighthouse P oint Florida Coast Bank o f Lighthouse P oint 109

Longw ood C om B ank/Longw ood 109

Miam i Capital Bank o f M iam i, N .A . 96

Intercon tin ental Bank o f M iam i 95

Sun Bank o f M iam i 109

Sun Bank o f M id to w n 109

Sun Bank o f Riverside 109 

M iam i Beach Intercon tin ental Bank o f M iam i Beach 

(change title to Inte rco n tin e n ta l

Bank) 95

N orth Bay Village Capital Bank o f N o rth Bay Village

(change title to Capital Bank) 96 

O rlando A tla n tic Bank o f Conway (change title

to A tla n tic Bank o f O rlando) 109

A tla n tic Bank of O rlando 109

A tla n tic Bank o f West O rlando 109

O rm ond Beach B arnett Bank at O rm ond Beach 109

Palm Beach C o u n ty B arnett Bank o f West Delray Beach 

(P.O. D elray Beach) (change title to B arn ett Bank o f

Delray Beach) 110

Palm Beach C o u n ty B arnett Bank o f Palm Springs 110 

(P.O. Lake W orth) B arnett Bank o f West Lake W orth,

National Association 110

F irst Bank West 109 

Palm Beach C oun ty F irst Forest H ill Bank o f

(P.O. West Palm Beach) Palm Beach C oun ty 109 

Palm Beach Gardens F irst M arine Bank o f Palm Beach

Gardens 110

Palm Springs F irst M arine N ational Bank 110

Pensacola B arnett Bank of Pensacola 109

P lantation B arnett Bank o f P lantation (change title

to B arnett Bank o f B row ard C ounty) 109

Pompano Beach Florida Coast Bank o f Oceanside 109

Florida Coast Bank o f Pom pano Beach 109

R edington Shores C o m m u n ity Bank of R edington 110 

Riviera Beach F irst M arine Bank & T rust C om pany

o f the Palm Beaches 110 

Sebring B arnett Bank at Sebring (change title

to B arnett Bank o f Highlands C oun ty) 110

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 55

State Town or City Bank Page

Sem inole C o m m u n ity Bank o f Sem inole (change

title to C o m m u n ity Bank o f Pinellas

C oun ty) 110 

St. Augustine B arnett Bank o f Anastasia Island (change 

title to B arnett Bank of St. Johns

C oun ty) 110 

B arnett Bank o f St. A ugustine, National

Association 110

St. Petersburg C o m m u n ity Bank o f Northside 110

C o m m u n ity Bank o f St. Petersburg 110 

Sun Bank and T rust C om pany of

St. Petersburg 109

Sun Coast Bank o f St. Petersburg 109

Tallahassee B arnett Bank o f Tallahassee 109

B arnett Bank o f Tallahassee N orth 109

Tam pa Landm ark Bank o f Tam pa 110

V ero Beach First C itrus Bank of Indian R iver C oun ty 109

F irst Westside Bank o f V ero Beach 109 

West Palm Beach B arnett Bank o f West Palm Beach 

(change title to B arnett Bank o f

Palm Beach C oun ty) 110

Citizens Bank of Palm Beach C o u n ty 109

W inter Park A tla n tic National Bank o f W in ter Park 109

Georgia C larkston Citizens DeK alb Bank 98

DeKalb C oun ty DeKalb Exchange Bank 98 

(P.O. Decatur)

Greensboro The Citizens Bank (change title to

Citizens U nion Bank) 59

U nion P oint Bank o f U nion P oint 59

Idaho Grace The First N ational Bank o f Grace 91

Malad C ity First Bank & T ru st o f Idaho 91

Indiana Batesville First Bank & T ru st Com pany o f

Batesville 94

M ilan The State Bank o f M ilan 94

Iowa B urlingto n B urlingto n Bank R ealty Com pany 111

Hawkeye Bank and T ru s t 111

Denver Denver Realty Com pany, Inc. 111

Denver Savings Bank 111

K eoku k The State Central Savings Bank 63

S to ckp o rt Iowa State Bank 63

Louisiana New Orleans F irst C ity Bank 80

*R e p u b lic N ational Bank o f Louisiana 80

Maine Augusta Depositors C orporation 111

Depositors T rust C om pany 111

Bangor Bangor Savings Bank 60

Brewer Brewer Savings Bank 72

B ucksport B ucksport Loan and B uilding A ssociation 72

E astport E astport Savings Bank 60

M aryland Bethesda The Comm erce Bank and T ru st

C om pany o f M aryland (change

title to Potom ac V alle y Bank) 80

Chevy Chase Chevy Chase Bank and T ru s t Com pany 85

* Banks absorbed in "emergency" approvals under provisions of section 1 8(c).

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56 FEDERAL DEPOSIT INSURANCE CORPORATION

State Town or City Bank Page

E lkto n E lkto n Banking and T ru st C om pany o f

M aryland (change title to C o u n ty

Banking and T ru st Com pany) 78 

Havre de Grace The Citizens N ational Bank of

Havre de Grace 78

Potom ac Potom ac National Bank 80 

Riverdale Citizens Bank and T ru st Com pany of

M aryland 85

Massachusetts Boston The First N ational Bank o f Boston 67

M ichigan G ladw in M id Michigan Bank 111

State Bank of Harrison and G ladw in

(in organization) 111

Grand Blanc First S ecurity Bank o f Grand Blanc 111

GBB Bank (in organization) 111

Mississippi Canton The First N ational Bank o f Canton 99

Carthage Bank o f Central Mississippi 73

Jackson The Mississippi Bank 99

Sebastopol The Bank o f Sebastopol 73

New Ham pshire Hanover F irst U nited Bank (in organization) 111

Hanover Bank & T ru st C om pany 111

New Jersey B ridgewater Somerset T ru s t Com pany 61 

T ow nship

D unellen The First N ational Bank o f D unellen 103

Jersey C ity P rovident Savings Bank 103

M anville State Bank o f M anville 61 

M ontvale Peoples Bank (change title to U nited

Jersey B a n k/N o rth ) 74

P rinceton P rinceton Bank and T ru st C om pany 106

R idgewood U nited Jersey B ank/R idgew ood 74

W oodbridge T o w nship Mid-Jersey National Bank 106 

(P.O. Fords)

New Y o rk New Y o rk (B ro o klyn ) A ncho r Savings Bank 87

F u lto n Savings Bank, Kings C oun ty 100

M e trop olita n Savings Bank 100

New Y o rk (M anhattan) The New Y o rk Bank fo r Savings 86

J. H enry S chroder Banking C orp ora tio n 101 

Schroder T ru st Com pany (change title 

to J. H enry Schroder Bank & T ru st

Com pany) 101 

New Y o rk M utual Savings and Loan A ssociation

(P.O. P ort R ichm ond) o f R ichm ond C oun ty 77

N o rth fie ld Savings Bank 77 

Syracuse First Federal Savings and Loan

Association o f Syracuse 86 

T a rry to w n Westchester C o u n ty Savings Bank

(change title to Peoples W estchester

C ounty Savings Bank) 75

W hite Plains N orth New Y o rk Savings Bank 87

Y onkers Peoples Savings Bank o f New Y o rk 75

N o rth Carolina Roanoke Rapids Roanoke Rapids Branch-Southern

National Bank o f N orth Carolina 102

R ocky M o unt Peoples Bank & T ru st Com pany 102

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 57

State Town or City Bank Page

O hio A urora A -V Bank Com pany (in organization) 111

The Village Bank o f A uro ra 111

O klahom a Foss * First State Bank 62

Washita State Bank 62

Pennsylvania La Porte S ullivan C o u n ty N ational Bank 82

Ralston Citizens & N orthern Bank 82 

Sham okin The Guarantee T rust and Safe Deposit

Bank o f S ham okin, Pa. 83

W illia m sport N orthern Central Bank 83

Rhode Island Providence Old Stone Bank 111

Old Stone Mortgage and Realty T rust 111

S outh Carolina C olum bia First-C itizens Bank and T ru st C om pany

o f S outh C arolina 62

G reenville * First P iedm ont Bank and T ru st C om pany 62

S outhern Bank and T ru st C om pany 90

S partanburg Morgan Bank and T ru st 90

Tennessee A u b u rn to w n Bank o f A u b u rn 69

Cookeville Bank o f C ookeville 68

M adisonville Bank o f M adisonville 66

M onterey Bank o f Putnam C ounty 68

S weetwater M onroe C oun ty Bank 66

W oodbury Bank o f Com m erce 69

Texas A ddicks A ddicks Bank 112

A llie d A ddicks Bank (in organization) 112

B aytow n Peoples State Bank 111 

West Main State Bank (in organization;

change title to Peoples State Bank) 111

Beaum ont B eaum ont State Bank 111 

Calder Avenue State Bank (in organization; change title to B eaum ont

State Bank) 111

C arro llto n F irst Bank & T ru st 111 

Josey State Bank (in organization;

change title to F irst Bank & Trust) 111 

Dallas East Dallas Bank 111 

New East Dallas Bank (in organization) 111 

Houston A llie d H illc ro ft Bank (in organization) 112 

H illc ro ft Bank 112 

M eyerland Bank 112 

M eyerland Bank o f Com m erce (in organization; change title to M eyerland Bank) 112 

L u bbock A m erican State Bank 111 

Second Am erican State Bank (in organization; change title to A m erican State Bank) 111 

San A n to n io Nacogdoches Road Bank (in organization;

change title to N orthern Hills Bank

o f San A n to n io ) 111

N orthern H ills Bank o f San A n to n io 111

W innie A llie d G u lf Coast Bank (in organization) 112

G u lf Coast State Bank 112

Utah A m erican F o rk M o unta in V ie w Bank 111

New M ounta in V ie w Bank (in organization) 111

* Banks absorbed in "emergency” approvals under provisions of section 18(c).

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

State Town or C ity Bank Page

Lehi New State Bank o f Lehi (in organization) 111

State Bank o f Lehi 111

Pleasant Grove Bank o f Pleasant Grove 111

New Bank o f Pleasant Grove (in organization) 111

Salt Lake C ity W alker Bank and T rust C om pany 112

W altac, Inc. (in organization) 112

V e rm o n t W hite R iver Ju n ctio n The First N ational Bank o f W hite R iver

Jun ctio n 97 

Inter-State T rust C om pany (change title

to F irst Inter-S tate Bank) 97

V irg in ia Augusta C o u n ty Augusta Bank & T ru st C om pany (change

(P.O. Fisherville) title to Planters Bank & T ru st C om pany

o f V irginia) 84

Bristol Bank o f V irginia-S outhw est 70

H illsville Bank o f C arroll 111 

Carroll Bank (in organization; change title

to B ank o f C arroll) 111

Roanoke Bank o f V irginia, N .A . 70

S taunton Planters Bank and T ru st Com pany 84

West V irg in ia Gassaway Bank o f Gassaway 111

C o m m u n ity Investm ent Com pany, Inc. 11*1

Wisconsin Green Bay Peoples M arine Bank o f Green Bay 65

H a rtfo rd V alley Bank o f H a rtfo rd 71

New Franken New Franken Bank 65

N orth Lake Bank o f N orth Lake 71

O ther Areas

Puerto R ico San German * Banco Economias 80

San Juan (H ato Rey) Banco Central y Economias 80

Uruguay M ontevideo Banco Internacional, S.A. 67

BANKS INVOLVED IN ABSORPTIONS DENIED BY 

THE FEDERAL DEPOSIT INSURANCE CORPORATION IN 1977

Massachusetts Lyn n Essex C oun ty Bank and T ru st C om pany 115

Marblehead The Marblehead Bank and T ru s t C om pany 115

Michigan A lpena Alpena Savings Bank 113

H illm an H illm an State Bank 113

Mississippi B aldw yn B aldw yn State Bank 117

Tupelo The Peoples Bank and T ru st C om pany 117

* Banks absorbed in "em e rg e n cy" approvals under provisions o f section 1 8(c).

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Federal Reserve Bank of St. Louis
59

BANK ABSORPTIONS APPROVED BY THE CORPORATION

R esources

(in

th o usd nds

B a n k in g

o ffic e s in

o p e ra tio n

o f d o llars) B e fo re A fte r

The Citizens Bank

Greensboro, Georgia 

(change title to 

Citizens Union Bank)

8,577 1 2

to merge with

Bank of Union Point

Union Point

4,845 1

Summary report by A ttorney General, 

November 16, 1976

Both banks are located in Greene County, a 

sparsely populated rural county whose population 

decreased from 11,193 in 1960 to 10,212 in 1970. 

Alm ost 50 percent of the residents o f Greene 

County live in Greensboro (1970 population of 

2,583), the county seat, and Union Point (1970 

population of 1,624), which are only 7 miles 

apart.

The county currently is served by four single 

office banks. Applicant and Bank are only 7 miles 

apart and each, respectively, receives 19 percent 

and 18 percent of its I PC deposits and 18 percent 

and 10 percent of its loans and discounts from the 

overlapping service area. The proposed merger w ill 

thus obviously eliminate a significant volume of 

existing direct com petition. Inasmuch as A pplicant 

and Bank, if merged, w ill have a combined total of

30.6 percent of total county deposits, the proposed acquisition w ill also produce increased concentration. However, the remaining tw o banks, 

one of which is located in Greensboro and the 

other in Union Point, have market shares of 36.7 

percent and 32.7 percent, respectively, and thus 

both are larger than the bank to be created via the 

proposed merger. Georgia law permits A pplicant 

and Bank to establish de novo branches in the area 

served by the other, but the economic feasibility 

of doing so is absent.

The proposed acquisition w ill eliminate existing 

direct com petition, w ill produce increased conc e n tra tio n , and w ill not im portantly impede 

potential com petition. However, the size o f the 

banks and the relevant geographic market, coupled 

w ith the apparently sluggish performance of the 

two banks during the recent past, somewhat m itigate the adverse com petitive consequences of the 

merger. Overall, the proposed acquisition would 

have an adverse competitive effect.

Basis for Corporation approval, February 1, 1977

The Citizens Bank, Greensboro, Georgia ("C itizens"), an insured State nonmember bank having 

total resources o f $8,577,000 and total IPC deposits of $7,344,000, 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 Union Point, 

Union Point, Georgia ("B U P "), an insured State 

n o n m e m b e r b a n k , w ith to ta l resources of 

$4,845,000 and total IPC deposits of $4,178,000. 

The merger would be effected under the charter of 

Citizens and w ith the title "Citizens Union Bank." 

Incident to the transaction, the sole office of BUP 

would be established as a branch o f the resultant 

bank, which would commence operations w ith a 

total o f tw o offices.

Competition. Citizens operates its sole office in 

Greensboro, a city in northeastern Georgia located 

approximately 75 road-miles east of downtown 

Atlanta. BUP has its office in Union Point, which 

is located 7 road-miles northeast of Greensboro.

Both banks are located in Greene County, 

which forms most of the trade area o f each proponent. This county and the adjacent counties are 

largely rural areas devoted to crop production and 

livestock. Greene County and most of the surrounding counties experienced declining populations over the last decade. Greene County had a 

1970 population of 10,212, representing an 8.8 

percent decrease from 1960. Sim ilarly, the area's 

1975 median household buying level was substantially below the State median. Greene County's 

median household buying level was $8,692, compared w ith the statewide level of $11,235.

The most appropriate geographic area in which 

to assess the com petitive effects of the proposed 

transaction would be that area w ithin a 20-mile 

radius of Greensboro. This market would encompass all of Greene County and portions of Oglethorpe, Oconee, Morgan, Putnam, Hancock, Taliaferro, and Wilkes Counties. The 1970 population 

of the market area was approxim ately 35,000. The 

communities of Greensboro and Union Point had 

1970 populations o f 2,583 and 1,624, respectively. There are seven commercial banks, including both of the proponents, operating in this area. 

BUP represents the market's smallest bank w ith 

7.2 percent of the market's commercial bank IPC 

deposits. Controlling 12.7 percent of such deposits, Citizens represents the market's fifth largest 

bank. Therefore, existing com petition would be 

eliminated as a result of the proposed merger. 

Upon consummation of the proposal, the resultant 

bank would be second largest in the market w ith a 

19.9 percent market share. Three other banks 

operating in the market would hold market shares 

of 22.7 percent, 18.8 percent, and 16.5 percent.

U n d e r Georgia law, either proponent may 

establish de novo branches w ithin Greene County. 

In view of the county's population decline, low 

median buying level, and low population per office 

(main office of 4 banks together w ith 1 automated

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60 FEDERAL DEPOSIT INSURANCE CORPORATION

facility to serve approximately 10,200 persons), 

however, such expansion is unlikely.

Although existing com petition would be elim inated as a result o f this proposal, it is not viewed 

as detrimental. In view of its recent financial d ifficulties, BUP is not regarded as a viable com petitor. 

Moreover, both o f the proponents are relatively 

small institutions and the market area has a sparse 

and declining population. Therefore; 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. Citizens has satisfactory financial and 

managerial resources. Those of BUP are less than 

acceptable. The resultant bank would have satisfactory financial and managerial resources and its 

future prospects appear to be favorable.

Convenience and Needs o f the Community to

be Served. The proposed merger would have little 

effect on public convenience and needs in Greene 

County and its environs.

Based on the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

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Bangor Savings Bank

Bangor, Maine

190,122 7 8

to merge with

Eastport Savings Bank

Eastport

6,516 1

Summary report by A ttorney General, 

January 6, 1977

Neither Applicant nor Bank operates offices in 

the primary service area or in any county in which 

the other operates. Although Applicant's closest 

branch office is over 100 miles from Bank's office, 

A pplicant nonetheless derives 3 percent of its total 

deposits from Bank's service area. Sim ilarly, Bank 

draws 1 percent of its deposits from Applicant's 

service area. Thus, it appears that the acquisition 

will eliminate a lim ited amount of direct com petition between the tw o institutions.

A total of 19 banking organizations operate 99 

banking offices in the 5-county area served by 

A pplicant and Bank. The four largest holding companies in this five-county area control 68.3 percent 

of total deposits, an indication of a concentrated 

market. As of June 30, 1975, Applicant was the

second largest bank in its four-county area w ith a 

market share of 21.15 percent. Bank is the fifth 

largest, of seven banking institutions, in Washington County w ith an 8-percent share of total 

deposits in the county. Consummation of the proposed merger w ill create a situation in which the 

resulting bank w ill maintain its second place position in the five-county area in terms of total deposits, w ith a 21.94-percent market share. In sum, 

consummation of the proposed acquisition w ill 

slightly increase concentration in the five-county 

area.

Maine permits statewide branching except in 

lim ited circumstances which do not appear to exist 

in the present application. The size of the A pplicant and the growth patterns over the last several 

years in Washington County suggest that A pplicant 

is a likely candidate fo r de novo entry into the 

county. De novo entry by A pplicant into the 

Washington market would, o f course, produce a 

much more pro-competitive situation because it 

would introduce a new com petitor into the market, rather than eliminating a com petitor via merger. Thus, the proposed acquisition would eliminate 

potential com petition.

I n sum, it appears that the proposed merger w ill 

have some adverse com petitive consequences.

Basis for Corporation approval, February 15, 1977

Bangor Savings Bank, Bangor, Maine ("Bangor 

Savings"), an insured mutual savings bank w ith 

total resources of $190,122,000 and total deposits 

of $174,589,000, 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 Eastport Savings Bank, Eastport, 

Maine ("E astport Savings” ), an insured mutual 

savings bank w ith total resources of $6,516,000 

and total deposits of $5,876,000. The banks 

would merge under the charter and title of Bangor 

Savings. As an incident o f the merger, the office of 

Eastport Savings would be established as a branch 

of the resultant bank, increasing the number of its 

approved offices to nine.

Competition. Bangor Savings operates seven 

offices: tw o in Bangor in southern Penobscot 

County and one each in Belfast (Waldo County), 

E llsw o rth (Hancock County), and M illinocket 

(n o rth e rn Penobscot County), and in DoverFoxcroft and Greenville (Piscataquis County). It 

also has approval to establish a branch in Orono 

(southern Penobscot County). Bangor Savings is 

the second largest th rift institution in the State. Its 

prim ary trade area comprises Penobscot, Hancock, 

and Waldo Counties and southern Piscataquis 

County. W ithin its primary trade area, Bangor Savings is the largest of seven th rift institutions, controlling 52.7 percent of the area th rift institution 

deposits. When area I PC time and savings deposits 

of commercial banks are included, Bangor Savings

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 61

market share becomes 17.5 percent, representing 

the largest o f 22 financial institutions.*

Eastport Savings operates its sole office in the 

city of Eastport (population 1,989), located in 

easternmost Washington County on a peninsula 

which lies west of Campobello Island in Passamaquoddy Bay. Besides Eastport Savings, one 

commercial bank, The Merrill Trust Company, 

operates an office in Eastport. T h rift institutions 

closest to Eastport Savings are Calais Federal 

Savings and Loan Association, 28 road-miles to the 

northwest of Eastport, and Machias Savings Bank, 

46 road-m iles to the southwest. The closest 

banked com m unity other than Calais is Lubec, 

located 40 road-miles on a circular route to the 

south. The prim ary trade area of Eastport Savings 

extends some 17 road-miles northwest of Eastport 

to include Robbinston and to the west 20 roadmiles to include Dennysville. This market had an 

estimated 1970 population of 4,150, representing 

a decrease of some 10.8 percent since 1960. The 

economy of the market area is dependent on 

c o m m e rc ia l fishing, tourism, lumbering, and 

lim ited agriculture. Washington County had a 

1975 median buying level of $8,214, which is 

more than $2,000 below that of any other county 

in Maine. Eastport Savings has 64.1 percent of the 

market's $9.2-m illion IPC deposits; The Merrill 

Trust Company has the remainder.

Bangor Savings' closest office is in Ellsworth, 

which is located 103 road-miles southwest of Eastport. The proponents' primary trade areas are 

sep arate and distinct. Both institutions may 

branch de novo or merge throughout the State. 

Eastport Savings, however, is not likely to undertake de novo expansion because of lim ited financial and managerial resources. Bangor Savings, on 

the other hand, has the resources and expertise for 

de novo expansion, but would not be attracted to 

the local market of Eastport Savings because of its 

prevailing low income levels and adverse population trend. Accordingly, there appears to be no 

significant existing or potential com petition between the proponents which their merger would 

eliminate.

In light o f the foregoing, 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 m onopoly, or 

in any other manner be in restraint of trade.

* Because of the increased parity between th rift in stitu ­

tions and commercial banks in the State o f Maine, the 

Board of Directors has taken the position that com mercial realities require a viewing of a com bined th rift institutio n-co m m ercial bank m arket when weighing the 

com petitive im pact of any proposed merger in this State. 

See Basis for Corporation Approval o f the proposed 

merger o f the Bangor Savings Bank, Bangor, Maine, and 

Piscataquis Savings Bank, Dover-Foxcroft, Maine, FD IC

Annual Report - 1976, pp. 78-79.

Financial and Managerial Resources; Future

Prospects. The financial and managerial resources 

of each institution are generally satisfactory. The 

future prospects of the resultant bank are considered favorable.

Convenience and Needs o f the Community to

be Served. The merger would establish one of 

Maine's major th rift institutions in the Eastport 

market. A greatly increased lending lim it and pool 

of credit, under a more sophisticated management, 

should be beneficial to the relevant market. Personal checking accounts and NOW accounts would 

become available to Eastport Savings' customers, 

as would loans fo r the purchase o f automobiles 

and mobile homes, home improvement loans, and 

education loans which heretofore have not been 

offered.

On the basis of the foregoing inform ation, the 

Board of Directors has concluded that approval of 

the application is warranted.

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Somerset Trust Company

Bridgewater Township, 

New Jersey

133,228 7 8

to merge with

State Bank of Manville

Manville

6,689 1

Summary report by A ttorney General, 

February 8, 1977

We have reviewed this proposed transaction and 

conclude that it would not have a substantial competitive impact.

Basis fo r Corporation approval, March 1, 1977

Somerset Trust Company, Bridgewater Township, New Jersey ("Som erset"), a State nonmember insured bank, w ith total resources of 

$ 1 3 3 ,2 2 8 ,0 0 0 and to ta l IPC de posits of 

$92,374,000, has applied, pursuant to Section 

18(c) and other provisions of the Federal Deposit 

Insurance Act, for the Corporation's prior consent 

to merge w ith State Bank of Manville, Manville, 

New Jersey ("S ta te"), a State nonmember insured 

bank w ith total resources of $6,689,000 and total 

IPC deposits of $4,547,000. The banks would 

merge under the charter and title of Somerset, and 

incident to the transaction, the sole office of State 

would be established as a branch o f the resultant 

bank, increasing to eight the number of its offices.

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62 FEDERAL DEPOSIT INSURANCE CORPORATION

Competition. Somerset operates its main office 

and five branches in Somerville and its environs 

and one branch in Watchung, 13 road-miles east of 

the main office, all in Somerset County in northcentral New Jersey. State has its sole office in 

Manville, an industrial com m unity of 13,029 in 

S o m e rse t County, 4 road-miles southeast of 

Somerset's main office and 1.8 miles south of the 

latter's nearest branch.

The most appropriate area in which to assess 

the com petitive effects of the proposed transaction would be Somerset County and adjacent 

Middlesex Borough in Middlesex County. Located 

on the western fringe of the Newark-New York 

metropolitan area, this market had a 1970 population of 213,410, representing a 38.0 percent increase from 1960. O f the $569.0 m illion in IPC 

deposits held by 55 offices of 17 commercial 

banks operating in this market, Somerset held 16.2 

percent, the 3rd largest share; State held 0.8 percent, the 13th largest share. The resultant bank 

would continue to be the third largest in the market, w ith 17.0 percent o f the market's commercial 

bank IPC deposits.

Both of the proponents operate in the market 

area, and consummation of the proposed transaction would eliminate existing com petition. The 

result of the merger, however, would have only 

slight com petitive significance. State is a relatively 

small institution and its financial condition is precarious, a situation which severely lim its its competitive stature and casts grave doubt on its continued viability. Thus, it appears that the merger 

would eliminate neither significant existing competitio n nor the potential for increased com petition 

between the proponents.

Considering the foregoing inform ation, the 

Board of Directors has concluded that the proposed merger o f Somerset and State would not, in 

any section of the country, substantially lessen 

com petition, tend to create a m onopoly, or in any 

other manner be in restraint o f trade.

Financial and Managerial Resources; Future

Prospects. The financial resources o f State are 

inadequate and its continued viability is in grave 

doubt. Somerset has a generally sound asset structure and satisfactory management. The resultant 

bank's future prospects would be favorable.

Convenience and Needs of the Community to

be Served. Consummation of the proposal would 

preclude any interruption of banking services for 

the clientele of State. A greatly increased lending 

lim it and pool o f credit, under experienced and 

capable management, should be beneficial to the 

Manville market. Also, trust services, a national 

credit card plan, and overdraft banking privileges 

would be available fo r the first time to State's customers.

Based on the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

Resources

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Washita State Bank

Foss, Oklahoma

250 - 1

to purchase certain assets and

assume the deposit

liabilities of

First State Bank

Foss

1,850 1

Approved under emergency provisions. No report requested from the A ttorney General.

Basis for Corporation approval, March 11,1977

Washita State Bank, Foss, Oklahoma, a newly 

chartered State nonmember bank having $250,000 

in capital, has applied, pursuant to Section 18(c) 

of the Federal Deposit Insurance Act, for the Corporation's consent to purchase certain assets of 

and assume the lia bility to pay deposits made in 

First State Bank, Foss, Oklahoma, an insured State 

n o n m e m b e r bank w ith to ta l resources of 

$1,850,000 as of December 31, 1976.

As of March 11,1977, First State Bank had deposits and other liabilities of some $1,800,000 and 

operated one office. On March 1 1, 1977, the Federal Deposit Insurance Corporation was appointed 

as Receiver of First State Bank.

The Board of Directors finds that the failure of 

First State Bank requires it to act immediately and 

thus waives publication of notice, dispenses w ith 

the solicitation of com petitive reports from other 

agencies, and authorizes the transaction to be consummated immediately.

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First-Citizens Bank and

Trust Company of

South Carolina

Columbia, South 

Carolina

233,275 42 47

to acquire the assets and

assume the deposit

liabilities of

First Piedmont Bank

and Trust Company

Greenville

54,819 5

Approved under emergency provisions. No report requested from the A ttorney General.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 63

Basis for Corporation approval, March 11,1977

First-Citizens Bank and Trust Company of 

South Carolina, Columbia, South Carolina ("C itizens"), an insured State .nonmember bank w ith 

total resources of $233,275,000, has applied, pursuant to Section 18(c) and other provisions of the 

Federal Deposit Insurance Act, for the Corporation's prior approval to acquire the assets o f and 

assume the liability to pay deposits made in First 

Piedmont Bank and Trust Company, Greenville, 

South Carolina ("P iedm ont"), an insured State 

n o n m e m b e r ba nk w ith to ta l resources of 

$54,819,000. As an incident to the proposed 

transaction, the main office and four branches of 

Piedmont would become branches of Citizens. 

A pplication also has been made pursuant to Section 18(i) of the FDI A ct fo r the Corporation's 

consent to the prepayment of a $3,100,000 capital 

note and advance consent to the retirement provisions of a capital note in the principal amount of 

$7,100,000, which is being sold to another bank as 

an integral part of this transaction.

For reasons related to the condition of Piedm ont and the fact that the Corporation has been 

advised by the South Carolina Board of Financial 

Institutions that if the transaction is not effected 

it may be necessary to close Piedmont, the Board 

of Directors finds that the Corporation must act 

immediately in order to prevent the probable fa ilure of Piedmont and thus waives publication of 

notice, dispenses w ith the solicitation of com petitive reports from other agencies, and authorizes 

the transaction to be consummated immediately.

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The State Central Savings 39,782 5 6

Bank

Keokuk, Iowa

to acquire the assets and

assume the deposit

liabilities of

Iowa State Bank 3,583 1

Stockport

Summary report by A ttorney General, 

December 21, 1976

We have reviewed this proposed transaction and 

conclude that it w ould not have a substantial competitive impact.

Basis for Corporation approval, March 15, 1977

The State Central Savings Bank, Keokuk, Iowa 

("C entral"), an insured State nonmember bank

w ith total resources of $39,782,000 and total I PC 

deposits of $31,800,000, 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 Iowa State Bank, 

Stockport, Iowa, an insured State nonmember 

bank w ith total resources of $3,583,000 and total 

IPC deposits of $3,010,000. Central, establishing 

the sole office of Iowa State Bank as a branch, 

would operate a total of six offices.

Competition. Central operates its main office 

and tw o branches in Lee County, which is located 

in extreme southeastern Iowa. It also operates tw o 

branches in adjacent Van Buren County. Iowa 

State Bank operates its sole office in Stockport in 

northeastern Van Buren County.

Both Lee County and Van Buren County experienced a population decline during the 1960s. 

Lee County's population decreased by 2.7 percent, 

to a total of 42,996, and Van Buren County's by

11.6 percent, to a total of 8,643. In contrast, Iowa 

experienced a statewide population increase of 2.4 

percent during the same period. The easternmost 

portion of Lee County, bordering the Mississippi 

River, contains a significant am ount of industry; 

however, the remainder of the two-county region 

is rural and has an agricultural economic base.

The area principally affected by this transaction 

is Iowa State Bank's trade area, which would consist of an area situated w ithin approximately 20 

road-miles of Stockport. This would include the 

towns of Salem to the east, Bonaparte to the 

south, Keosauqua to the southwest, and the city 

of Fairfield to the northwest. Iowa State Bank has 

the fifth largest share, 4.5 percent, of the IPC deposits held at the 10 offices of 7 commercial banks 

being operated in this market. Central holds 3.5 

percent of such deposits at its branch in Bonaparte, 16 road-miles south of Stockport. There 

appears to be a partial overlapping of the proponents' service areas in this local market, but the 

modest shares of area IPC deposits held by each 

proponent render of little significance the elimination of existing com petition between them which 

would result from the consummation of the proposal.

An Iowa commercial bank may legally branch 

de novo in its main office county and in unbanked 

communities of all contiguous or cornering counties. Although there are opportunities for de novo

branching by both proponents in the relevant 

market, Iowa State Bank has neither financial and 

managerial resources nor the inclination to embark 

on an office expansion program. Central, for its 

part, would likely find the relevant market unattractive fo r de novo expansion because of its 

declining population and a low population per 

banking office figure of 1,910. The proposed 

transaction, accordingly, would not eliminate any 

significant potential fo r com petition to increase

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between Central and Iowa State Bank through 

their de novo branching in the future.

Based on the foregoing, the Board of Directors 

is of the opinion that the proposed transaction 

would not, in any section of the country, substantia lly lessen com petition, tend to create a m onopoly, or in any other manner be in restraint of 

trade.*

Financial and Managerial Resources; Future

Prospects. Both proponents have satisfactory 

financial and managerial resources and future prospects, as would the resultant bank.

Convenience and Needs o f the Community to

be Served. The proposed transaction would have 

little effect on the convenience and needs of the 

local market. The resulting institution would offer 

no services that are not currently available from 

alternative sources in the relevant area.

Based on the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

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B e fo re A fte r

N o rth A m e ric a n B a n k 

and Trust Company

W olcott, Connecticut

18,946 2 3

to purchase the assets and

assume the deposit

liabilities of

The Monroe Bank and

Trust Company

Monroe

4,444 1

Approved under emergency provisions. No report requested from the A ttorney General.

Basis fo r Corporation approval, March 28, 1977

North American Bank and Trust Company, 

W o lc o tt, Connecticut, an insured State nonmember bank w ith total resources of $18,946,000, 

has applied, pursuant to Section 18(c) of the Federal Deposit Insurance Act, for the Corporation's 

consent to purchase the assets of and assume liability to pay deposits made in The Monroe Bank and

*T w o senior officers of Central acquired stock control of 

Iowa State Bank in June 1972. Since the current a ffilia ­

tion o f the tw o banks has not heretofore been subject to 

regulatory scrutiny, the a ffilia tio n is of no persuasive 

value in determ ining, fo r purposes of the Bank Merger 

Act, w hat com petitive impact, if any, the proposed 

transaction may have. Therefore, the Board of Directors 

has ignored the a ffilia tio n in its assessment o f the pro ­

posal.

Trust Company, Monroe, Connecticut, an insured 

State nonmember bank w ith total resources of 

$4,444,000. As an incident to the proposed transaction, the sole office of The Monroe Bank and 

Trust Company w ould become a branch of North 

American Bank and Trust Company.

As of March 28, 1977, The Monroe Bank and 

Trust Company had deposits of some $2.6 m illion 

and operated one office. On March 28, 1977, the 

Federal Deposit Insurance Corporation was appointed as Receiver o f The Monroe Bank and 

Trust Company.

The Board o f Directors finds that the failure of 

The Monroe Bank and Trust Company requires it 

to act immediately and thus waives publication of 

notice, dispenses w ith the solicitation of com petitive reports from other agencies, and authorizes 

the transaction to be consummated immediately.

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B e fo re A f t e r

American Commercial

Bank

Ventura, California

10,065 2 3

to purchase a portion of the

assets and assume a portion

o f the deposit liabilities of

Ventura Branch— The Bank

of California

Ventura

3,402* 1

*IPC deposits. Assets not available by office.

Summary report by A ttorney General, 

January 26, 1977

We have reviewed this proposed transaction and 

conclude that it w ould not have a substantial competitive impact.

Basis fo r Corporation Approval, A pril 5, 1977

American Commercial Bank, Ventura, C alifornia ("Am erican Com m ercial"), a State nonmember 

insured bank w ith total resources of $10,065,000 

and total IPC deposits of $7,757,000, has applied, 

pursuant to Section 18(c) and other provisions of 

the Federal Deposit Insurance Act, fo r the Corporation's prior consent to purchase a portion of 

the assets of and assume a portion of the deposits 

made in The Bank of California, National Association, San Francisco, California ("Bank of California” ). American Commercial also has applied 

for consent to establish Bank of California's Ventura Branch ("V entura Branch"), w ith total IPC 

deposits of $3,402,000, as a branch, increasing the 

number o f its offices to three.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 65

Competition. American Commercial operates 

its tw o offices w ithin a two-block area of downto w n Ventura. Organized in 1973, American 

Commercial is a locally owned, independent bank, 

and it represents the 174th largest of California's 

commercial banks.

B ank o f C a lifo rn ia represents the State's 

seventh largest commercial bank and it operates its 

Ventura Branch approximately 3 road-miles east 

of American Commercial's tw o offices. The Ventura Branch represents Bank of California's only 

office w ithin the city of Ventura.

American Commercial's primary trade area, as 

well as that of the Ventura Branch, is the city of 

Ventura. There are 18 banking offices o f 10 banks, 

including the proponents' 3 offices, operating 

w ithin Ventura. Including Bank of California, 6 of 

the State's 10 largest banks operate in the c it/. 

Com petition w ithin Ventura is extremely c jn - 

centrated w ith the tw o largest banks controlling

63.7 percent of the commercial bank I PC deposits 

and the four largest banks controlling 80.7 percent 

of such deposits. W ith 3.9 and 1.7 percent of the 

IPC deposits, American Commercial and Bank of 

California, respectively, have the seventh and ninth 

largest shares of the banks operating in the city. 

Upon consummation of the proposed transaction, 

American Commercial w ill increase its position by 

merely one place, to the sixth largest institution, 

w ith 5.6 percent of the IPC deposits. Although 

there is some existing com petition between the 

proponents, in light of their modest shares of the 

trade area and the city's concentrated condition, 

the com petitive effects o f the proposed transaction would appear to be insignificant. Due to the 

proponents' relatively small operations w ithin an 

area dominated by major statewide banks, there 

also appears to be little potential for significant 

com petition to develop between the proponents in 

the foreseeable future. Thus, approval of this 

application would neither eliminate significant 

existing or potential com petition between the tw o 

proponents nor significantly affect the structure of 

commercial banking in the relevant area.

Under these circumstances, the Board of Directors is o f 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 proponents' financial and managerial resources are considered adequate fo r purposes of this proposal. The financial and managerial resources of the resultant bank would be 

acceptable and its future prospects appear to be 

favorable.

Convenience and Needs o f the Community to

be Served. No significant impact on public convenience is likely to result from this proposal.

Based on the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

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Peoples Marine Bank of

Green Bay

Green Bay, Wisconsin

120,364 2 3

to merge with

New Franken Bank

New Franken

11,276 1

Summary report by A ttorney General,

March 4, 1977

We have reviewed this proposed transaction and 

conclude that it would not have a substantial competitive impact.

Basis fo r Corporation approval, April 19, 1977

Peoples Marine Bank of Green Bay, Green Bay, 

Wisconsin ("Peoples M arine"), a State nonmember 

insured bank w ith total resources of $120,364,000 

and total IPC deposits of $99,525,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for 

the Corporation's prior consent to merge w ith 

New Franken Bank, New Franken, Wisconsin 

("N F B "), a State nonmember insured bank w ith 

total resources of $11,276,000 and total IPC deposits of $10,087,000. The tw o institutions would 

merge under the charter and title of Peoples 

Marine, and incident to the merger, the sole office 

of NFB would be established as a branch of the 

resultant bank.

Competition. Peoples Marine operates its main 

office in downtown Green Bay and one branch in 

Allouez, in the southern portion of the Green Bay 

metropolitan area. Peoples Marine is owned by 

The Marine Corporation, Milwaukee, Wisconsin, a 

holding company which controls 16 Wisconsin 

b a n k s w i t h a g g re g a te IPC d e p o s its o f 

$827,997,000, or 6.1 percent o f the State's total 

IPC deposits. The proposed transaction would 

have no perceptible effect on this percentage.

NFB operates its sole office in the unincorporated village of New Franken. NFB is owned by 

New Shares, Inc., New Franken, Wisconsin, a onebank holding company.

Green Bay, w ith a 1970 population of 87,800, 

is located in Brown County, which is in northeastern Wisconsin approximately 100 miles north

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

of Milwaukee. New Franken, w ith a population of 

200, is also in Brown County, about 11 miles east 

of Green Bay.

Both of the proponents operate w ithin the 

same general trade area, which consists o f Brown 

County (excluding the com m unity of Wrightstown 

in the southwestern corner of the county) and a 

small portion of western Kewaunee County. There 

are 27 offices of 17 banks operating w ithin this 

market. Ten o f these banks are controlled by 8 

different holding companies, including 6 of the 

S tate's 10 largest holding companies. Peoples 

Marine is the only bank operating in this market 

that is owned by The Marine Corporation and, 

w ith a 16.6 percent market share, it has the second 

largest share of IPC deposits held by all banking 

organizations in the market. NFB has the second 

smallest share w ith 1.7 percent of the IPC deposits. The closest offices of the proponents are 

approximately 11 miles apart, and there are a 

number of offices of competing banks in the intervening area. The proposed merger, therefore, 

would not eliminate any significant existing competition, and although it would increase local 

market concentration slightly, numerous meaningful alternative sources of commercial banking services would remain.

T h e p o te n tia l for further com petition to 

develop between Peoples Marine and NFB through 

de novo branching appears remote. Wisconsin's 

restrictive branching law precludes Peoples Marine 

from branching into New Franken. NFB has experienced asset and capital problems, and it has 

neither the financial nor the managerial resources 

to expand.

In view of the foregoing, the Board of Directors 

has concluded that the proposed transaction 

would not, in any section of the country, substantially lessen com petition, tend to create a monopoly, or in any other manner be in restraint of 

trade.

Financial and Managerial Resources; Future

Prospects. The financial and managerial resources 

of Peoples Marine are satisfactory and its future 

prospects are favorable, as would be the case for 

th e resultant bank. The proposed transaction 

would resolve NFB's asset and capital problems 

and assure its future as a branch o f Peoples Marine.

Convenience and Needs o f the Community to

be Served. The benefits to the New Franken comm unity include the introduction of such banking 

services as trust services, data processing services, 

and leasing services.

Based on the foregoing inform ation, the Board 

of Directors has concluded that approval of the 

application is warranted.

R esources

(in

th o u san d s

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Bank of Madisonville

Madisonville, Tennessee

23,157 2 3

to merge with

Monroe County Bank

Sweetwater

6,149 1

Summary report by A ttorney General,

March 1, 1977

Sweetwater (1970 population 4,591) is the largest city in Monroe County, while Madisonville 

(1970 population 2,614) is the county seat. Monroe County is prim arily an agricultural and residential area, located about 50 miles southwest of 

Knoxville. The area has experienced some industrial growth in the past 10 years, but remains 

prim arily an agricultural economy. The county 

appears to be relying upon the com pletion of the 

Tellico Dam to provide an economic boost to the 

area.

The offices of A pplicant are approximately 9 

miles and 23 miles from the sole office of Bank. 

Accordingly, the proposed acquisition would eliminate some existing com petition.

Bank is the smallest of three financial institutions which have a total of five offices in Sweetwater. Sweetwater Valley Bank, the largest bank in 

Monroe County, has its home office and tw o 

branches in Sweetwater. City and County Bank, 

Tellico Plains, Tennessee, the third largest, has a 

branch in Sweetwater. Applicant, the second largest, has no branch in Sweetwater. Tennessee banking law permits branch banking only in counties 

where home offices are located. Thus, A pplicant 

could theoretically enter Sweetwater de novo.

However, the presence of five bank offices in 

Sweetwater and the small population of the town 

suggest that A pplicant is unlikely to enter the 

town de novo.

Four banks operate a total of 12 offices in 

Monroe County. Applicant ranks second w ith 

approximately 31 percent of total county deposits 

and Bank ranks as the fourth and smallest w ith 

approxim ately 8 percent. Thus, the proposed 

acquisition w ill increase Applicant's share o f the 

market to 39 percent, although A pplicant w ill continue to hold its rank as the second largest county 

bank.

In sum, the proposed acquisition would eliminate existing com petition to some degree and w ill 

increase concentration by eliminating one of the 

four banking institutions in the county. Overall, 

the proposed acquisition would have an adverse 

effect on com petition.

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Basis for Corporation approval, May 3, 1977

Bank of Madisonville, Madisonville, Tennessee 

("B O M "), an insured State nonmember bank w ith 

total resources of $23,157,000 and total I PC deposits of $18,674,000, 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 Monroe County Bank, 

Sweetwater, Tennessee ("M onroe"), an insured 

State nonmember bank w ith total resources of 

$6,149,000 and total I PC deposits of $4,496,000. 

The merger would be effected under the charter 

and title of BOM. Incident to the transaction, the 

sole office of Monroe would be established as a 

branch of the resultant bank, which would then 

operate three offices.

Competition. Both of the proponents operate 

in Monroe County, which is located in southeastern Tennessee. BOM operates its main office in 

Madisonville and a branch in Tellico Plains, located 

15 miles southeast o f Madisonville. Monroe has its 

sole office in Sweetwater, which is approximately

9 road-miles northwest o f Madisonville.

W ith a large portion of the county occupied by 

a national forest and a w ildlife management area, 

Monroe County has a predom inantly agricultural 

economy. The county had a 1970 population of 

23,457, representing merely a 0.7 percent increase 

from 1960. Its median household buying level is 

$8,439, which is substantially below the statewide 

median level o f $10,993. Madisonville and Sweetwater, respectively, had populations of 2,614 and 

4,340.

The effects of the proposed merger w ould be 

most direct and immediate in that area w ithin a 

1 5 -m ile radius of Sweetwater. This includes 

Madisonville. It also includes the communities of 

Loudon, located 12 miles northeast of Sweetwater, and Athens, located 15 miles southwest of 

Sweetwater (both of these communities are connected w ith Sweetwater by interstate highway). A 

total of 11 commercial banks operate 25 offices in 

this local banking market. As o f June 30, 1976, 

BOM held 12.8 percent and Monroe held 3.1 percent o f the I PC deposits held by area commercial 

bank offices, representing, respectively, the fourth 

and ninth largest shares of deposits. There is existing com petition between the proponents, but the 

proposal's elim ination o f this com petition would 

have only slight com petitive significance. Although 

the resultant bank w ould have 15.9 percent of the 

m arket's IPC deposits, five other competitors 

would each have area IPC deposit shares exceeding

11.0 percent. W ith a total of 10 banks remaining 

in the market after the merger, a satisfactory competitive climate would continue.

Although under Tennessee law each proponent 

may establish de novo branches throughout Monroe County, expansion by either of the proponents 

is unlikely due to the county's lim ited population 

growth, its low median buying level, and the existing banking structure, which provides an office for 

each 1,956 residents.

Under the foregoing circumstances, the Board 

of Directors is of the opinion that the proposed 

merger w ould not, in any section o f the country, 

substantially lessen competion, tend to create a 

m onopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future

Prospects. BOM has satisfactory managerial and 

financial resources. Those of Monroe are acceptable. The resultant bank would have satisfactory 

financial and managerial resources and its future 

prospects appear to be favorable.

Convenience and Needs o f the Community to

be Served. The proposed merger would have little 

effect on public convenience and needs in Monroe 

County.

Based on the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

R esources

(in

tho u san d s

o f d o lla rs )

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

The First National Bank 7,811,661 41* 41

of Boston

Boston, Massachusetts

to acquire the assets and

assume the liabilities o f

Banco lnternacional,S.A. 6,234 3

Montevideo, Uruguay

* Domestic offices.

Summary report by A ttorney General,

March 14, 1977

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 

com petition.

Basis fo r Corporation approval, May 23, 1977

The First National Bank of Boston, Boston, 

M assachusetts ("F N B B "), a national banking 

a s s o c ia t io n h a v in g to t a l re source s o f 

$7,811,661,000, has applied, pursuant to Section 

18(c) of the Federal Deposit Insurance Act, for 

the Corporation's prior consent to acquire the 

assets and assume the liabilities of Banco International, S.A., Montevideo, Uruguay ("B IS A "), a 

noninsured, directly owned subsidiary o f FNBB 

w ith total resources of $6,234,000. FNBB has an 

application pending w ith the Board of Governors 

of the Federal Reserve System for permission to

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

establish branches at BISA's three locations in 

Montevideo.

The proposed transaction is in effect a corporate reorganization whose purpose is to change 

the legal form under which FNBB conducts its 

operations in the Uruguayan market. The transaction consummated, FNBB would carry on essentially the same business at its Montevideo branches 

as has heretofore been conducted by BISA.

Competition. The proposed transaction would 

have no effect on either existing or potential competition between FNBB and BISA 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 BISA, and the proposed transaction 

would have no adverse impact on the proponents.

Convenience and Needs of the Community to

be Served. The proposal would have no perceptible 

effect on the convenience and needs of any of 

FNBB's domestic markets or of the Uruguayan 

market.

Based on the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

R esources

(in

thousands

o f d o llars)

Bank i ng 

o ffic e s in

o p e ra tio n

B e fo re A fte r

Bank of Putnam County

Monterey, Tennessee

14,139 2 3

to merge with

Bank of Cookeville

Cookeville

17,924 1

Summary report by A ttorney General,

March 16, 1977

C o o k e v ille , Tennessee (1970 population 

14,270; 1975 estimated population 17,800), located half way between Nashville and Knoxville, 

Tennessee, is the principal city in and the county 

seat of Putnam County. It has a balanced economy 

consisting of manufacturing, distribution, and 

educational industries. According to the application, economic growth in Cookeville and Putnam 

County has been substantial w ithin the last 5 

years, and the prospects for future growth appear 

to be unusually bright.

Applicant's Cookeville branch is located less 

than 1 mile from Bank in downtown Cookeville. 

In addition, in 1974 Bank received approval to 

establish a branch office in Cookeville, at a location approxim ately tw o blocks from Applicant's 

branch. (The application states that the Corporation extended the time w ithin which Bank could

establish the branch to February 1, 1977.) The 

other tw o banks presently operating in Putnam 

County operate a total of eight offices in Cookeville.

Applicant and Bank have been aggressive and 

effective com petitors in Putnam County. According to the application, from 1971 through 1975 

each institution has at least doubled its IPC demand and tim e deposits, its loans, and its net 

in co m e . Their success, the application states 

(p.22), "was the result of their intense efforts to 

compete w ith [the tw o larger Putnam County 

banks] fo r loans and deposits through the personal 

solicitation of accounts . . . . ' ' It is evident that the 

proposed acquisition would eliminate substantial 

existing com petition and the potential fo r increased com petition between A pplicant and Bank.

Putnam County is presently served by 4 banks 

which operate a total of 13 offices. As of June 30, 

1976, the tw o largest banks controlled 42 percent 

and 38 percent, respectively, of Putnam County 

commercial bank deposits; Bank controlled 11 percent and Applicant controlled 8 percent. The proposed acquisition would reduce from fou r to three 

the number of banking alternatives in Putnam 

County and would further concentrate an already 

highly concentrated banking market. Moreover, 

under Tennessee law a bank may only branch 

w ithin the county in which it is headquartered, 

and de novo expansion into Putnam County by 

the bank holding device is prohibited until after 

January 1, 1980. Putnam County, therefore, is 

insulated from entry, a factor which serves to increase the anticom petitive effects o f the proposed 

merger.

We conclude that the proposed merger would 

have a significantly adverse effect on com petition.

Basis fo r Corporation approval, May 23, 1977

Bank of Putnam County, Monterey, Tennessee 

("B P C "), a State nonmember insured bank having 

total resources of $14,139,000 and total IPC deposits of $9,870,000, 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 Cookeville, Cookeville, Tennessee ("Cookeville Bank"), a State nonmember insured bank having total resources of 

$1 7 ,9 2 4 ,0 0 0 and to ta l IPC d e p o s its o f 

$12,622,000. The merger would be effected under 

the charter and title of BPC, and incident to the 

transaction, the sole office of Cookeville Bank 

would be established as a branch o f the resultant 

bank, which would then operate three offices.

Competition. BPC has its main office in Monterey, a town of 2,351 residents, and a branch in 

Cookeville, which has a population of 14,270 and 

is located 15 road-miles west of Monterey. Both 

Monterey and Cookeville are located in Putnam 

County. Cookeville Bank's sole office is approximately 1 mile east of BPC's branch in Cookeville.

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 69

Putnam County is located in central Tennessee. 

The county's economy is based on agriculture, 

manufacturing, mining, and distribution. Putnam 

County had a 1970 population of 35,487. This 

represented a 21.4 percent increase from 1960, a 

rate of growth that was more than twice that of 

the State as a whole. Although the county has 

undergone significant population growth, its 1975 

median household buying level of $8,991 lags considerably below the statewide median of $10,993.

The city of Cookeville is the county seat of Putnam County. Situated 80 road-miles east of Nashville and 110 road-miles west of Knoxville, it 

serves as the economic center for the Upper Cumberland Region. Cookville represents the sole 

urban area of Putnam County. Approxim ately 

tw o-fifths of the county's population resides in 

Cookeville, and all but 4 of the 13 banking offices 

operating in the county are located in Cookville.

The effects of the proposed merger would be 

most immediate and direct w ithin the primary 

trade area o f Cookeville Bank. This market, comprising communities located w ithin approximately

18 road-miles of Cookeville, includes Putnam 

County and adjoining portions of southern Overton County and northern White County. There are 

21 offices o f 9 commercial banks being operated 

w ithin this market, serving an estimated 1970 

population of 54,750. Of the IPC deposits aggregating $214.6 m illion held by these offices, Cookeville Bank and BPC have 5.9 percent and 4.6 percent, respectively, the seventh and eighth largest 

shares. The resultant bank, w ith 10.5 percent of 

such deposits, would become fifth largest in the 

market.

Under Tennessee law, the proponents may 

branch throughout Putnam County. Both banks 

have the resources to facilitate such expansion 

and, as Putnam County continues to grow, may be 

expected to branch de novo w ithin the foreseeable 

future. However, tw o other commercial banks, 

both headquartered in Cookeville and holding 

respective shares of 25.1 percent and 20.1 percent 

of the IPC deposits of Cookeville Bank's primary 

market, would also be candidates for similar expansion. Moreover, Putnam County's recent substantial growth strengthens that market's attractiveness fo r the establishment of additional 

banks.* This likelihood of additional banks being 

established and de novo expansion by the present 

Putnam County banks mitigates the significance of 

the proposed merger's elim ination o f the potential 

for com petition to increase between the proponents through their future de novo expansion.

Under these circumstances, the Board of Directors is of the opinion that the proposed transaction would not, in any section o f the country,

^Organizers o f a new bank in Putnam County have recently applied to the State banking authorities fo r a 

charter. The new bank would be headquartered in 

Cookeville.

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 adequate financial resources for the business they conduct and 

their managerial resources are satisfactory. Such 

resources fo r the resultant bank are considered 

adequate and its future prospects are favorable.

Convenience and Needs o f the Community to

be Served. The proposed merger would have little 

effect on public convenience and needs in Putnam 

County.

Based on the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

Resources

(in

th o u san d s

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Bank of Commerce

W oodbury, Tennessee

29,505 2 3

to merge with

Bank of Auburn

Auburntown

2,516 1

Summary report by A ttorney General,

March 25, 1977

Applicant operates in W oodbury, the county 

seat (population 1,700) of Cannon County (population 8,500) which is only 10 miles away from 

A uburntown (population 200), where Bank operates. There are no competing banks in the intervening area. Thus, the proposed acquisition w ill 

eliminate existing com petition.

There are four banks operating a total of five 

offices in Cannon County. As o f June 30, 1976, 

A pplicant ranked first w ith about 79 percent of 

total county deposits and Bank ranked third w ith 

about 7 percent of deposits. The second largest 

bank is Bank of Cannon County, a subsidiary of 

Tennessee National Bancshares, Inc., w ith total 

deposits of $4.2 m illion. Mellons Bank, w ith total 

deposits of $245 thousand is the smallest of the 

fo u r county banks. The proposed acquisition 

would increase Applicant's share of the county deposits from 79 percent to 86 percent and thus obviously would increase concentration.

Tennessee is a lim ited branching State where 

commercial banks can only branch in the county 

in which a bank is headquartered. Accordingly, 

Applicant and Bank are free to branch in each 

other's towns. However, Auburntown has only 

200 residents and thus is an unlikely place for 

A pplicant to establish a branch. In addition, it is

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70 FEDERAL DEPOSIT INSURANCE CORPORATION

questionable whether Bank possesses the resources 

to branch into W oodbury. Accordingly, the proposed acquisition would not eliminate potential 

com petition in any im portant respect.

In sum, the proposed acquisition— though it 

involves small banks in a very sparsely populated 

rural area— would eliminate existing com petition 

and would increase concentration. It would obviously be preferable were Bank to serve as a toehold acquisition by an out-of-county bank. Overall, the acquisition would have an adverse effect 

upon com petition.

Basis fo r Corporation approval, May 23, 1977

Bank of Commerce, W oodbury, Tennessee, a 

State nonmember insured bank w ith total resources o f $29,505,000 and total IPC deposits of 

$24,652,000, 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 Auburn, Auburntown, 

Tennessee, w ith total resources of $2,516,000 and 

total IPC deposits of $2,181,000, under the charter and title of Bank of Commerce. Incident to the 

merger, the one existing office of Bank of Auburn 

would become a branch of the resultant bank, 

thereby increasing its total offices to three.

Competition. W oodbury is located in central 

Tennessee approxim ately 50 miles southeast of 

Nashville. It serves as the seat of Cannon County 

and is the principal commercial center fo r the 

county. W oodbury's population was 1,725 in 

1970. With a 1970 population of merely 213, 

which represented a 16.8 percent decrease from 

1960, the town of A uburntown is located 10 

road-miles north of W oodbury, in northern Cannon County. Median household income in Cannon 

County was $8,051 in 1974, which was 17.3 percent below the statewide median. The economy of 

the county is based prim arily on agriculture, 

timber, and various small factories in and around 

W oodbury, including clothing manufacturing.

The local banking market most relevant to an 

evaluation of the proposed merger would be 

A uburntown and the surrounding area w ithin 20 

road-miles. This market includes the city of Murfreesboro, which is located 20 road-miles southwest of A uburntown. There are 12 commercial 

banks in this market, w ith total IPC deposits of 

approximately $168.8 m illion on June 30, 1976. 

Holding 14.4 percent of these deposits, Bank of 

Commerce has the market's third largest share of 

deposits. Bank of Auburn has only 1.2 percent of 

the market's IPC deposits and it is the smallest insured bank operating in the market. Upon consummation of the proposed merger, the resultant 

bank would hold 15.6 percent of the deposits and 

it would retain its third place market position. A lthough some existing com petition between the 

two proponents would be eliminated by the proposed merger, the addition o f Bank of Auburn's

deposits and loans to Bank of Commerce's totals 

would constitute a de minimis addition to existing 

concentration levels w ithin the market area and 

would not perceptibly affect its commercial banking structure. Moreover, after the consummation 

of the proposed merger, 10 banks would remain as 

alternative sources of banking services w ithin the 

market area.

Under Tennessee law each o f the proponents 

may establish de novo branches throughout Cannon County. There appears to be little likelihood 

of increased com petition between Bank of Commerce and Bank o f Auburn in the future, however, 

because of the lim ited population in the A uburntown area and the lack of financial and managerial 

resources on the part of Bank of Auburn.

On the basis of the foregoing inform ation, the 

Board of Directors is of the opinion that the proposal would not, in any section of the country, 

substantially lessen com petition, tend to create a 

m onopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future

Prospects. Both banks have adequate financial and 

managerial resources fo r the business they do as 

independent institutions, and both would have 

adequate prospects fo r the future. The same would 

be true of the resultant bank.

Convenience and Needs o f the Community to

be Served. The proposed merger would have little 

effect on the market area as a whole, but present 

customers of Bank o f Auburn would have access 

to a variety of services that the bank's current conservative management has not offered. Among 

these services are consumer instalment loans, safe 

deposit boxes, various types of officers' and travelers' checks, certificates of deposit, an after-hours 

depository, and computer services.

Based on the foregoing, the Board of Directors 

has concluded that approval o f the proposed merger is warranted.

R esources

(in

thousands

of d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Bank of Virginia -

Southwest

Bristol, Virginia

143,600 15 33

to merge with

Bank of Virginia N.A.

Roanoke

161,539 18

Summary report by A ttorney General,

A pril 11, 1977

The merging banks are both w holly owned subsidiaries of the same bank holding company. As

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 71

such, their proposed merger is essentially a corporate reorganization and would have no effect on 

com petition.

Basis for Corporation approval, May 23, 1977

Bank of Virginia-Southwest, Bristol, Virginia 

("S outhw est"), an insured State nonmember bank 

w ith total resources of $143,600,000 and total 

IPC deposits of $117,866,000, has filed application, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, 

seeking the Corporation's prior consent to merge 

w ith Bank of Virginia N.A., Roanoke, Virginia 

( " B O V N A " ) , w ith to ta l re source s o f 

$ 1 6 1 ,5 3 9 ,0 0 0 and to ta l IPC deposits of 

$131,923,000. The merger would be effected 

under the charter and title of Southwest. The 18 

o ffice s of BOVNA would be established as 

branches of the resultant bank, and incident to the 

merger, the form er main office of BOVNA would 

be designated the main office of the resultant bank 

while the main office of Southwest would become 

a branch. The resultant bank would commence 

operations w ith a total of 33 offices.

Competition. Southwest and BOVNA are w holly owned subsidiaries of Bank of Virginia Company, Richmond, Virginia ("B O V C "). This holding company is the fifth largest commercial bank 

organization in Virginia, controlling 10 commercial banks whose IPC deposits on June 30, 

1976, aggregated $964.7 m illion— 7.7 percent of 

the State's total commercial bank IPC deposits. 

The sole purpose of the proposed merger is to enable BOVC to consolidate its operations in western 

and central western Virginia. The tw o subject 

banks are located in separate service areas and 

there is no significant existing com petition between them. Both operate under the supervision of 

a single chief executive officer, have a common 

marketing image, and receive support of BOVC in 

such areas as investment, personnel, data processing, marketing, and audit. The proposal, therefore, would not change the structure or concentration of commercial banking in the relevant areas.

Under these circumstances, the Board of Directors is of the opinion that the proposed merger 

would not, in any section of the country, substantially lessen com petition, tend to create a monopoly, or in any other manner be in restraint of 

trade.

Financial and Managerial Resources; Future

Prospects. Both proponents have adequate financial and managerial resources for the business they 

do, as would the resultant bank. The future prospects of the resultant bank are favorable.

Convenience and Needs o f the Community to

be Served. The proposed merger represents an internal reorganization. No effect on the convenience and needs of the com m unity is expected to 

result therefrom.

On the basis of the foregoing, the Board of 

Directors has concluded that approval o f the application is warranted.

Resources

(in

tho u san d s

B a n k in g

o ffic e s in

o p e ra tio n

o f d o lla rs ) B e fo re A fte r

Valley Bank of Hartford

Hartford, Wisconsin

18,784 1 2

to consolidate with

Bank of North Lake

North Lake

7,003 1

Summary report by A ttorney General, 

November 22, 1976

We have reviewed this proposed transaction and 

conclude that it would not have a substantial competitive impact.

Basis fo r Corporation approval, May 23, 1977

A/alley Bank o f Hartford, Hartford, Wisconsin 

("V alley Bank"), an insured State nonmember 

bank w ith total assets of $18,784,000 and total 

IPC deposits of $14,854,000, 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 under its charter and title w ith Bank of North Lake, North 

Lake, Wisconsin, an insured State nonmember 

bank w ith total assets of $7,003,000 and total IPC 

deposits of $5,628,000, and to establish a branch 

at the location of the sole office of the latter.

Competition. Valley Bank has its office in Hartford, Washington County, in southeastern Wisconsin, approximately 34 road-miles northwest of 

downtown Milwaukee. Valley Bank is a w holly 

owned subsidiary of Valley Bancorporation. This 

holding company, the sixth largest commercial 

bank organization in Wisconsin, controls 14 commercial banks whose aggregate deposits of $272 

m illion at June 30, 1976, represented 1.8 percent 

of the State's total commercial bank deposits.

Bank of North Lake operates its office in North 

Lake, an unincorporated village w ithin the town of 

Merton, which is located in northwestern Waukesha County approximately 12 road-miles south 

of Hartford.

T he effects of the proposed consolidation 

would be most immediate and direct w ithin the 

primary trade area of Bank of North Lake, which 

consists of that area w ithin approxim ately 10 

road-miles of North Lake. This area encompasses 

northwestern Waukesha County and small portions 

of adjacent Dodge and Washington Counties and

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

includes the communities of Sussex, Delafield, and 

Oconomowoc. Primarily residential in character, 

this area is developing as a suburb of Milwaukee. 

W ith a 1970 population of approximately 37,300, 

the area experienced a population increase of over

37.0 percent during the 1960s.

A total of 8 commercial banks w ith 11 offices 

operate w ithin Bank of North Lake's trade area. 

Included among these are subsidiaries of the third 

and seventh largest commercial bank organizations 

in Wisconsin. Bank of North Lake has the smallest 

share, 5.4 percent, of the $9 6 .1-million IPC deposits held on June 30, 1976, by these offices. 

Valley Bank is located merely 12 miles from Bank 

of North Lake; however, there appears to be no 

significant existing com petition between the proponents. Instead, Valley Bank would appear to 

operate in a separate, but adjacent service area.* 

The nearest office to Bank of N orth Lake o f any 

other subsidiary of Valiey Bancorporation is the 

A llentown Branch of Valley Bank, Kewaskum, 

located 22 road-miles north of North Lake.

Wisconsin banking law permits a commercial 

bank to establish de novo branches in its main office county and in adjoining counties w ithin 25 

miles of its main office, but not w ithin 3 miles of 

an existing bank office. Thus, neither proponent 

may enter the main office com m unity o f the 

other. There being no population center attractive 

for de novo entry situated between their respective 

locations, it appears that no significant potential 

exists for com petition to increase between Valley 

Bank and Bank of North Lake through their de

novo branching in the foreseeable future. Should 

the relevant market become attractive for de novo

entry as the northwestern suburbs of Milwaukee 

continue to expand, there are a number of commercial banks, including subsidiaries o f several of 

the State's major bank organizations, legally capable of de novo entry into the area.

Valley Bancorporation presently operates three 

subsidiary banks in Valley Bank's maximum legal 

branching area. These subsidiaries' area offices 

controlled 4.1 percent o f the IPC deposits held on 

June 30, 1976, by all such offices of the 43 commercial bank organizations operating in this area. 

The proposed consolidation w ould increase Valley 

Bancorporation's share of these deposits to 4.6 

percent.

The Board of Directors, in consideration of the 

foregoing, is of the opinion that the proposed 

transaction would not, in any section of the count r y , substantially lessen com petition, tend to 

create a monopoly, or in any other manner be in 

restraint of trade.

A complete review of customer accounts of the proponents reveals tw o depositors having accounts at both 

banks. The business each bank draws from the prim ary 

trade area o f the other w ould, therefore, appear to be of 

slight com petitive significance.

Financial and Managerial Resources; Future

Prospects. Both proponents have adequate financial and managerial resources, as would the resultant bank. Its future prospects are favorable.

Convenience and Needs o f the Community to

be Served. The consolidation would provide North 

Lake and its vicinity w ith an office of an aggressively operated bank. Offering services which reflect the expertise of Valley Bancorporation, the 

resultant bank should contribute significantly to 

the development and growth of the relevant area.

In light of the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

Resources

(in

thousands

o f d o lla rs )

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Brewer Savings Bank

Brewer, Maine

24,211 2 2

to merge with

Bucksport Loan and

Building Association

Bucksport

363 1

Summary report by A ttorney General,

May 3, 1977

We have reviewed this proposed transaction and 

conclude that it would not have a substantial competitive impact.

Basis fo r Corporation approval, June 13, 1977

Brewer Savings Bank, Brewer, Maine ("Brewer 

Savings"), an insured mutual savings bank w ith 

total resources of $24,211,000 and total deposits 

of $22,590,000, 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 Bucksport Loan and Building Association, Bucksport, Maine ("L & B "), a noninsured 

mutual loan and building association w ith total 

resources of $363,000 and total deposits of 

$323,000. The merger would be effected under 

the charter and title of Brewer Savings. The sole 

office of L&B would be discontinued.

Competition. Brewer Savings has its main office 

in Brewer, Penobscot County, in central Maine, 

and a branch in Bucksport, Hancock County, 19 

road-miles to the south of Brewer.

L&B's sole office is located in Bucksport and it 

operates from quarters w ithin the residence of an 

officer of the institution. The office is open only 

one day a month. L&B has 50 loan customers and 

approximately 200 deposit accounts. Maine law

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 73

presently requires a depository institution to be 

federally insured, and as a result, L&B's trustees 

have decided either to negotiate a merger or to 

liquidate.

The town of Bucksport had a 1970 population 

of 3,756. In addition to the branch of Brewer Savings (deposits $2 m illion), Bucksport contains a 

branch of The Merrill Trust Company (IPC deposits $5 m illion) and a branch of The Liberty 

National Bank in Ellsworth (IPC deposits $3.8 

m illion). Banked communities closest to Bucksport are Ellsworth, 20 miles to the east, in which 2 

savings banks and 3 commercial banks are represented; Searsport, 18 miles to the southwest, 

w ith a branch of 1 savings bank and 1 commercial 

bank w ithin the tow n; and the Bangor-Brewer 

area, 19 miles to the north, w ith 4 offices of 3 savings banks and 23 offices of 6 commercial banks.

L&B is not an aggressively operated institution, 

and in view of its miniscule size, this transaction 

represents a de minimis addition to Brewer Savings' deposit and loan totals. As a result, no significant existing com petition between the proponents 

would be eliminated by their merger. In addition, 

the likely alternative to the proposed merger is 

liquidation of the institution. Thus, there also is 

no significant potential for com petition to increase 

between the proponents.

Under these circumstances, the Board of Directors is of the opinion that the proposed merger 

would not, in any section of the country, substantially lessen com petition, tend to create a monopoly, or in any other manner be in restraint of 

trade.

Financial and Managerial Resources; Future

Prospects. The financial and managerial resources 

of Brewer Savings are generally satisfactory. Its 

surplus position is statistically low, a situation 

which w ill be remedied by the bank's issuance of 

subordinated capital notes w ithin a few months. 

The future prospects of the resultant bank are 

satisfactory.

Convenience and Needs o f the Community to

be Served. L&B's accounts would be transferred to 

the B uckspo rt branch of Brewer Savings. A 

broader range of savings plans and loan types 

would be available to L&B's patrons and the institution's depositors would gain the protection of 

Federal deposit insurance.

Based on the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

R esources

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B e fo re A fte r

Bank of Central

Mississippi

Carthage, Mississippi

9,386 2 3

to merge with

The Bank of Sebastopol

Sebastopol

1,629 1

Summary report by A ttorney General,

March 31, 1977

A pplicant has its main office in Carthage, population 3,0 00,and a branch in Madden, population 

200, in Leake County, about 50 miles northeast of 

Jackson. Bank's only office is in a com m unity of 

300, about 20 miles from Applicant.

Sebastopol is in Scott County at its junction 

w ith both Leake and Neshoba Counties. There are 

seven other banks, ranging in size from the State's 

ninth largest to one w ith $6 m illion of deposits 

w ithin about 20 miles. This is a merger of the 

seventh and ninth largest in size in the largely rural 

area where they operate. In view of their small 

size, the com petitive effect is not adverse.

Basis fo r Corporation approval, June 13, 1977

Bank of Central Mississippi, Carthage, Mississippi, a State nonmember insured bank w ith total 

assets of $9,386,000 and total IPC deposits of 

$6,174,000, 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 under its charter and title w ith The Bank of 

S ebastopol, Sebastopol, Mississippi ("Bank of 

Sebastopol"), a State nonmember insured bank 

w ith total assets of $1,629,000 and total IPC deposits of $1,337,000. Incident to the merger, the 

office of Bank of Sebastopol would be established 

as a branch of the resultant bank, which would 

commence operating w ith a total of three offices.

Competition. Bank of Central Mississippi has its 

main office in Carthage and its sole branch in Madden, located 15 road-miles to the east of Carthage, 

both in Leake County in central Mississippi.

Bank of Sebastopol operates its sole office in 

Sebastopol, a tow n in extreme northeastern Scott 

C o u n ty , located approxim ately 22 road-miles 

southeast of Carthage and 14 road-miles south of 

Madden.

Bank of Central Mississippi serves Leake County and small adjoining portions of the counties of 

Madison, Scott, and Neshoba, including the town 

of Sebastopol, all located w ithin a radius of approxim ately 20 road-miles of Carthage. Largely an 

agricultural area, its estimated 1970 population of 

20,300 recorded no significant change during the 

1960s. Five commercial banks are represented in 

the market, their nine area offices holding IPC

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

deposits of $39.7 m illion at June 30, 1976. Bank 

of Central Mississippi had the third largest share of 

such deposits, 11.9 percent, and Bank of Sebastopol had 3.5 percent, the smallest share.

Bank of Sebastopol, drawing the bulk of its 

business from northeastern Scott County, southeastern Leake County, southwestern Neshoba 

County, and northwestern Newton County, has a 

primary trade area which includes communities 

w ithin some 18 to 20 road-miles of Sebastopol. 

The 1970 population of this agricultural area, an 

estimated 22,300, showed a 3.5 percent decrease 

during the preceding decade. Bank o f Sebastopol is 

one of six commercial banks having offices in this 

$63-m illion IPC-deposit market and it held 2.2 

percent of such deposits at mid-1976. Bank of 

Central Mississippi held 1.1 percent of such deposits at its Madden branch.

The existing com petition between the proponents that would be eliminated by their merger, 

measured by the modest share each has o f the relevant market, is of no com petitive significance. 

A dditionally, as there are no communities legally 

available w ithin the primary trade area of either 

proponent of sufficient size to warrant de novo

entry, there appears to be no significant potential 

fo r increased com petition between the banks 

through their future de novo expansion.

The proposed merger would result in an extension o f Bank of Central Mississippi's primary trade 

area. In this expanded market, the resultant bank 

would have 6.5 percent, the sixth largest share, of 

IPC deposits aggregating $93.4 m illion held on 

June 30, 1976, by 13 area offices of 7 commercial 

banks.

From the foregoing, it appears that the proposed merger would not have a significant effect 

on com petition in any relevant area. The Board of 

Directors, accordingly, is of the opinion that the 

proposal would not, in any section of the country, 

substantially lessen com petition, tend to create a 

m onopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future

Prospects. Both of the proponents have adequate 

financial and managerial resources, as would the 

resultant bank. Its future prospects are favorable.

Convenience and Needs o f the Community to

be Served. The merger would make available consumer loans, a broader spectrum of savings programs, and safe deposit boxes to residents, businessmen, and farmers located in that portion of 

Bank of Sebastopol's prim ary trade area which is 

not presently served by Bank of Central Mississippi. To the extent that such services are available 

at the offices of other banks in the relevant area, 

those offered by the resultant bank would be an 

additional alternative for public choice.

A fter consideration of the foregoing, the Board 

of Directors has concluded that approval of the 

application is warranted.

Resources

(in

tho u san d s

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Peoples Bank

Montvale, New Jersey 

(change title to United 

Jersey Bank/North)

26,122 2 5

to merge with

United Jersey

Bank/Ridgewood

Ridgewood

33,884 3

Summary report by A ttorney General,

March 14, 1977

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 

com petition.

Basis fo r Corporation approval, June 13, 1977

Peoples Bank, Montvale, New Jersey, an insured 

State nonmember bank w ith total resources of 

$ 2 6 ,1 2 2 ,0 0 0 and to ta l IPC d e p o s its o f 

$22,719,000, 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 United Jersey Bank/Ridgewood, 

Ridgewood, New Jersey ("U nited Jersey/Ridgew ood"), w ith total resources of $33,884,000 and 

total IPC deposits of $28,448,000. The merger 

would be effected under the charter of Peoples 

B ank and w ith the t it le " U n ite d Jersey 

Bank/North. The three offices o f United Jersey/Ridgewood would be established as branches 

of the resultant bank and the latter would commence operations w ith a total of five offices.

Competition. Both Peoples Bank and United 

Jersey/Ridgewood are w holly owned subsidiaries 

of United Jersey Banks. This Princeton-based holding company is the second largest commercial 

bank organization in New Jersey, controlling 12 

banks whose aggregate deposits of $1,590 m illion 

at June 30, 1976, represented 7.2 percent of the 

State's total commercial bank deposits.

The sole purpose of the proposed merger is to 

enable United Jersey Banks to consolidate its operations in northern Bergen County. The tw o institutions are located in essentially separate service 

areas. There is no significant existing com petition 

between them, nor is there a potential for such 

com petition to develop. The proposal, therefore, 

would not change the structure or concentration 

of commercial banking in any relevant area.

The Board of Directors is of the opinion that 

the transaction would not, in any section of the 

country, substantially lessen com petition, tend to 

create a m onopoly, or in any other manner be in 

restraint of trade.

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 75

Financial and Managerial Resources; Future

Prospects. Both o f the proponents have financial 

and managerial resources that are acceptable for 

the purposes of this proposal, as would the resultant bank. Its future prospects appear to be favorable.

Convenience and Needs o f the Community to

be Served. The proposed merger represents an internal reorganization. No significant effect on the 

convenience and needs of the com m unity is expected to result therefrom.

On the basis of the foregoing, the Board of 

Directors has concluded that approval of the application is warranted.

Resources

(in

th o u san d s

o f d o lla rs )

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Westchester County

Savings Bank

Tarrytow n, New Y ork 

(change title to 

Peoples Westchester 

County Savings Bank)

271,234 8 13

to merge with

Peoples Savings Bank of

New York

Yonkers

377,683 5

Summary report by A ttorney General, 

February 15, 1977

The prim ary effect of the merger w ill be the 

entry of Applicant into Yonkers by the acquisition 

of Bank's four offices. Yonkers, the fou rth largest 

city in the State, is immediately north of New 

Y ork City along the Hudson River. Its population 

has dropped from 205,000 in 1970 to an estimated 198,000 in 1976; it is a mature economic 

market. A bout 34 percent of Yonkers' residents 

work in New Y ork City. The entire southern Westchester area has lost 6 percent of its population 

over the 6-year period while the northern Westchester area has grown by 15 percent.

The closest offices o f A pplicant and Bank are 

about a mile apart in southern Westchester. A p p licant's seven other offices, however, are located in 

the northern half of Westchester County. According to the application, Applicant's and Bank's 

prim ary service areas do not overlap, although 

each draws a small percentage of its deposits from 

the other's secondary service area. Thus, Applicant 

had 290 regular accounts (0.6 percent) w ith deposits of $1.9 m illion (0.9 percent) and 163 time 

accounts (0.3 percent) w ith $830,000 (0.4 percent) in Bank's area. Bank had 2,271 regular acc o u n ts (2.9 percent) w ith deposits o f $12.2 

m illion (3.8 percent) and 840 tim e accounts (1.1

percent) w ith deposits of $4.4 m illion (1.4 percent) in Applicant's area. The number of common 

depositors and borrowers is de minimis.

Deconcentration of the business conducted by 

financial institutions in Westchester County may 

be expected as a result of the removal of some 

lim itations on geographic expansion and on the 

activities permitted to non-bank financial institutions. Statewide branching, which became effective last year, and the entry of very large New 

York City banks, both savings and commercial, 

into the county promise to realign its banking 

structure, although de novo expansion by savings 

banks is lim ited to one branch per year. In addition, the authorization o f checking account service 

for savings banks and savings and loan associations 

has widened the area of effective com petition for 

demand deposits.

There are 20 savings banks operating in Westchester C ounty* (an area which may overstate the 

market) which held total county savings deposits 

of $2.6 billion as of June 30, 1975. As of the same 

date, 18 savings and loan associations operated in 

the county; they held total county savings deposits 

of $919.2 m illio n .**

A pplicant, the fifth largest of the 38 th rift institutions in terms of their total county savings deposits, held, as of June 30, 1975, $196.1 m illion in 

county savings deposits, 5.5 percent of total county th rift institution savings deposits. As of June 

30, 1975, Bank, the third largest o f the 38 th rift 

institutions operating in the county in terms of 

county deposits, held $312.4 m illion in total county deposits which accounted fo r 8.8 percent of 

total county th rift institution savings deposits. The 

four largest th rift institutions in Westchester County held 38.8 percent of total county savings deposits held by all th rift institutions operating in 

the county. If the proposed merger were consummated, the resulting bank would be the largest 

th rift institution in the county, accounting for

14.4 percent of total county savings deposits held 

by the th rift institutions operating there. The 

share of county savings deposits held by the top 

four th rift institutions would increase from 38.8 

percent to 44.3 percent.

The proposed merger would elmiminate the 

relatively small degree of existing com petition between the merging parties, and would increase concentration among Westchester County th rift institutions. However, the increase in concentration 

which would result from the merger may be substantially offset by the com muting habits of Westchester County residents (approxim ately one-third

*This assumes the merger o f Manhattan Savings Bank and 

Yonkers Savings Bank which the Corporation approved 

on November 30, 1976.

**A s o f June 30, 1975, the 15 com mercial banks operating in Westchester C ounty held $1.5 b illio n in coun ty 

IPC tim e and savings deposits.

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

of whom w ork in New Y ork C ity), and by the 

presence of large and numerous financial institutions located in New Y ork C ity, some of which 

also have branches in the county. Thus, among the 

New Y ork City savings banks operating in Westchester County are six of the country's largest. 

The smallest of these, which ranks 18th among 

New Y ork City savings banks, has total deposits 

more than double the amount that the bank resulting from this proposed merger would hold, even 

though its Westchester County deposits are only 

$23 m illion. In addition, there are many branch 

offices of New Y ork City's largest commercial 

banks presently operating in Westchester County.

In sum, although it is conceivable that the 

long-range effects of the recent amendments in 

New Y ork banking law could reduce the com petitive significance of the proposed merger, it appears 

that the more immediate com petitive effect of the 

proposal would be adverse.

Basis fo r Corporation approval, June 13, 1977

Westchester County Savings Bank, Tarry town, 

New Y ork ("W estchester"), an insured mutual savings bank w ith total resources of $271,234,000 

and total deposits of $252,540,000, has applied, 

pursuant to Section 18(c) and other provisions of 

the Federal Deposit Insurance Act, for the Corporation's prior consent to merge w ith Peoples 

Savings Bank of New Y ork, Yonkers, New York 

("Peoples"), an insured mutual savings bank having total resources of $377,683,000 and total deposits of $343,931,000. The tw o banks would 

merge under the charter of Westchester w ith the 

title "Peoples Westchester County Savings Bank," 

and incident to the merger, the 5 approved offices 

of Peoples would be established as branches of the 

resultant bank, increasing to 13 the number of its 

offices.

Competition. Westchester presently operates all 

of its eight offices in Westchester County. It ranks 

as the sixth largest th rift institution in the county 

w ith 5.7 percent of the total deposits held by the 

110 area offices of 22 mutual savings banks and 17 

federally insured savings and loan associations.

Peoples operates its main office and three 

branches w ithin the city of Yonkers in Westchester 

County and it has approval for an additional 

branch in Yonkers. Holding 8.0 percent of the 

to ta l deposits, Peoples represents Westchester 

County's second largest th rift institution.

Westchester County is situated immediately 

north of New Y ork City. Approxim ately 30.0 percent of the county's workers are employed in New 

Y ork City, chiefly in the Bronx and Manhattan, 

the tw o boroughs closest to Westchester County. 

Westchester County had a 1970 population of 

894,104, representing a 10.5 percent increase from 

1960. It had a 1975 median household buying 

level of $18,564 which is 36.0 percent above the 

statewide median.

The relevant market, w ithin which effects of 

the merger would be most immediate and direct, 

comprises Westchester County, the Bronx, and 

Manhattan. A total of 40 mutual savings banks, 

including both of the proponents, and 33 federally 

insured savings and loan associations operate w ith ­

in this market. Westchester and Peoples hold 0.76 

percent and 1.09 percent of the market's deposits, 

respectively, representing the 30th and 24th largest th rift institutions. Some existing com petition 

between the proponents w ill be eliminated as a 

result of the proposed merger; however, in view of 

the proponents' modest market shares, the resulting elimination is not significant.

New Y ork laws lim it de novo expansion by a 

mutual savings bank to one branch each year. This 

lim itation effectively restricts the development of 

significant com petition between Westchester and 

Peoples through additional branches in Westchester County.

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 manner be in restraint of trade.

Financial and Managerial Resources; Future

Prospects. Both proponents have satisfactory 

financial and managerial resources, as would the 

resultant bank. The future prospects o f the resultant bank appear favorable.

Convenience and Needs o f the Community to

be Served. The resultant bank would be a more 

aggressive bank in Westchester County, and w ith 

an increased loan capability, it should offer stronger com petition to numerous other lenders in the 

market. Services to be made available at the present offices of Peoples include cooperative apartm e n t loans, savings bank life insurance, and 

Saturday banking hours.

Based on the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

R esources

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B e fo re A fte r

Southwest Bank

Vista, California

83,437 10 13

to merge with

Mission Bank

El Toro

33,955 3

Summary report by A ttorney General,

March 1, 1977

We have reviewed this proposed transaction and 

conclude that it would not have a substantial competitive impact.

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 77

Basis fo r Corporation approval, June 27, 1977

Southwest Bank, Vista, California, a State nonmember insured bank w ith total resources of 

$ 8 3 ,4 3 7 ,0 0 0 and to ta l IPC d e p o s its o f 

$61,848,000, 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 Mission Bank, El Toro, California, a 

State nonmember insured bank w ith total resources of $33,955,000 and total IPC deposits of 

$25,178,000, under the charter and title o f Southwest Bank. Incident to the merger, the 3 offices of 

Mission Bank would be established as branches of 

the resultant bank, thus providing it w ith a total of

14 authorized offices.

Competition. Southwest Bank operates its main 

office in Vista and nine branches, all w ithin approxim ately 20 miles of the main office, in northwestern San Diego County. It also has the approvals to establish a branch in Oceanside, 7 miles 

west of the main office.

Mission Bank has its main office in El Toro, in 

southern Orange County some 45 miles northwest 

of Vista, and one branch each in Mission V iejo and 

Laguna Beach, 6 miles south and 8 miles southwest, respectively, of the main office.

There is no significant existing com petition between the proponents. Their primary trade areas 

are separated by approxim ately 25 miles, w ith 20 

miles of this distance lying w ithin Camp Pendleton, a U.S. Marine Corps reservation. Neither bank 

draws a significant am ount o f business from the 

prim ary market of the other.

Effects of the proposed merger would be most 

direct in Mission Bank's market, which consists of 

the El Toro-Laguna Niguel-Laguna Beach area of 

southern Orange County. This market had a 1970 

p o p u la tio n of approximately 67,000. Mission 

Bank is 1 of 9 commercial banks w ith 26 area 

offices holding a total of $347.0 m illion in IPC 

deposits. Mission Bank has the fourth largest share,

6.6 percent, of these deposits. Three of the five 

largest banks in California control an aggregate of

87.5 percent of such deposits.

Each proponent may legally enter de novo the 

primary trade area of the other. The proponents 

are both of relatively modest size, however, and 

their markets are heavily banked. Intense com petition prevails in both markets, and com petitors 

include the 2 largest banks in California as well as 

several other banks which rank among the 10 largest in the State. Therefore, expansion by either of 

the proponents would not result in development 

of significant com petition between them.

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 o f trade.

Financial and Managerial Resources; Future

Prospects. Southwest Bank has satisfactory financial and managerial resources. The financial resources of Mission Bank are acceptable; its managerial resources are satisfactory. The resultant 

bank would have satisfactory managerial resources, 

and w ith additional capital funds to be provided in 

connection w ith the merger, its future prospects 

are favorable.

Convenience and Needs o f the Community to

be Served. The proposed transaction would have 

little effect on the convenience and needs of the 

local market. The resultant institution would offer 

no services that are not currently available from 

alternative sources in the relevant area.

In light of the above inform ation, the Board of 

Directors has concluded that approval of the application is warranted.

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B e fo re A fte r

Northfield Savings Bank

New Y ork (P.O. Port 

Richmond), New Y ork

73,320 5 7

to merge with

Mutual Savings and Loan

Association of

Richmond County

New Y ork (P.O. Port 

Richmond)

24,447 2

Summary report by A ttorney General,

A pril 11, 1977

There are 5 mutual savings banks which operate 

a total of 20 offices on Staten Island. As of June 

30, 1976, A pplicant held 9.5 percent, the third 

largest share, of the $697.9 m illion in local deposits held by these institutions.

Mutual is the eighth largest in terms of local deposits of the 9 savings and loan associations which 

operate a total of 22 offices on Staten Island. Its 

deposits of $21.5 m illion represent 4.8 percent of 

the local deposits of $439.2 m illion held by these 

institutions.

Thus, A pplicant holds 5.9 percent and Mutual 

holds 1.9 percent of the $1.1 billion in deposits 

held by the 14 th rift institutions on Staten Island. 

In addition to the 14 th rift institutions, there are 7 

commercial banks which operate a total of 38 

offices on Staten Island. As of June 30, 1976, 

these commercial bank offices held total savings 

and time IPC deposits of $218.5 m illion.

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We conclude that although the proposed merger 

w o u ld e lim in a te direct com petition between 

Applicant and Mutual, its effect upon com petition 

would not be significantly adverse because of the 

relatively small size of the institutions and the 

presence of many com petitors on Staten Island.

Basis fo r Corporation approval, June 27, 1977

N orthfield Savings Bank, New Y ork (P.O. Port 

Richmond), New York (“ N o rth fie ld "), an insured 

m u tu a l savings bank w ith total resources of 

$73,320,000 and total deposits of $67,765,000, 

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 

Mutual Savings and Loan Association of Richmond County, New Y ork (P.O. Port Richmond), 

New Y ork ("M u tu a l” ), a federally insured savings 

and lo a n association w ith total resources of 

$24,447,000 and total deposits of $21,544,000. 

The tw o institutions would merge under the charter and title o f N orthfield, and incident to the 

merger, the tw o offices of Mutual would be established as branches of the resultant bank, which 

would commence operations w ith a total of seven 

offices.

Competition. Northfield and Mutual have their 

main offices less than 100 yards apart in the Port 

R ic h m o n d section o f northern-central Staten 

Island. N orthfield has three branches in locations 

less than 2 miles south of the main office and a 

fourth branch is 6 miles southwest of its main o ffice, in Eltingville. Mutual's sole branch is located 

about 2 miles east of its main office.

Both institutions draw most of their deposits 

from a section of northern and northern-central 

Staten Island that is located w ithin approximately 

3 miles of their main offices. Holding 8.9 percent 

and 3.1 percent, respectively, of the $691-m illion 

deposits held at the 26 offices o f 12 th rift institutions in this market, N orthfield and Mutual have 

the fou rth and ninth largest shares of such deposits. Staten Island Savings Bank is the major 

com petitor w ithin this market, w ith 30.7 percent 

of the area th rift institution deposits. Richmond 

County Savings Bank has the second largest share,

17.6 percent. The next five largest th rift institutions hold area deposit shares which range from

9.6 percent to 6.8 percent. The proposed merger 

would eliminate existing com petition between the 

proponents. This consequence, however, as well as 

the emergence of the resultant institution w ith

12.0 percent, the third largest share, o f the area's 

th rift institution deposits, is not considered of 

s u ffic ie n t competitive significance to warrant 

denial of the application. Numerous th rift institutions would continue as alternatives to serve the 

public, maintaining the strong com petitive climate 

which exists w ithin this local market.

New Y ork banking law lim its de novo expansion by a th rift institution to one branch each

year. In view of this restriction, the modest size of 

each proponent in the relevant market, and the 

existing th rift institution structure of the area, 

there appears to be no potential for significant 

com petition to increase between N orthfield and 

Mutual through their de novo branching in the 

foreseeable future.

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. N orthfield has satisfactory financial and 

managerial resources. Mutual's financial resources 

are satisfactory. It has a management succession 

problem, which the proposed merger would solve. 

The future prospects of the resultant institution 

are favorable.

Convenience and Needs o f the Community to

be Served. No significant enhancement of public 

convenience is likely to result from the proposed 

merger. The resultant institution would offer no 

services that are not currently available from alternative sources in the relevant market.

On the basis of the foregoing inform ation, the 

Board of Directors has concluded that approval of 

the application is warranted.

R esources

(in

B a n k in g

o ffic e s in

o p e ra tio n

tho u sa nds

o f d o lla rs ) B e fo re A fte r

Elkton Banking and

Trust Company of

Maryland

Elkton, Maryland 

(change title to County 

Banking and T rust 

Company)

42,675 5 7

to merge with

The Citizens National

Bank of Havre de Grace

Havre de Grace

10,523 2

Summary report by A ttorney General,

May 23, 1977

Cecil County (1970 population 53,000) is located in the extreme northeastern portion of 

Maryland. Cecil County and the eastern portion of 

Harford County (which abuts Cecil County to the 

west) is a com bination of agricultural, residential, 

and commercial areas and, according to the application, is changing from a predom inantly agricultural area to an increasingly im portant residential 

area. Havre de Grace (1970 population 10,000) is

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 79

located in the extreme eastern portion of Harford 

County on the Susquehanna River, which separates Harford and Cecil Counties. Havre de Grace 

is one of the major em ployment centers in Harford 

C o u n ty and has been experiencing economic 

growth in recent years.

Applicant's main office in Elkton is approximately 15 miles from Bank's main and branch 

offices in Havre de Grace. Applicant's closest office to Bank is located in the town of North East, 

Cecil County, approximately 9 miles northeast of 

Havre de Grace. A total of five other banks operate offices in North East, Havre de Grace, and the 

intervening area. It thus appears that there is some 

direct com petition between A pplicant and Bank 

which would be eliminated by the proposed acquisition.

The effect of the proposed acquisition upon 

com petition w ill be most pronounced in the area 

w ithin approximately 15 miles of Havre de Grace. 

There are presently 13 banks operating there, including branches of the State's 3 largest banks 

(M aryland National Bank, total deposits $2.0 

billion; Equitable Trust Company, total deposits 

$1.0 billion; and First National Bank of Maryland, 

total deposits $965 m illion). As of June 30, 1976, 

Applicant was the third largest banking organization in the area, controlling $33.7 m illion, 11.9 

percent of the area's deposits, and Bank was the 

ninth largest, controlling $8.8 m illion, 3.1 percent 

of the area's deposits. Banking is concentrated 

w ithin the area; the fou r largest banks, in terms of 

the area's deposits, controlled, as o f June 30, 

1976, approximately 62.8 percent of the deposits 

held in all banking offices in the area. If the proposed acquisition is consummated, Applicant 

would remain the third largest bank, controlling 

15.1 percent of area deposits, and the concentration among the fou r largest banks would increase 

from 62.8 percent to 66 percent.

In sum, we conclude that the proposed acquisition would have an adverse effect upon com petition.

Basis fo r Corporation approval, July 14, 1977

Elkton Banking and Trust Company of Maryland, Elkton, Maryland ("E B & T "), an insured 

S ta te no n member bank w ith total assets of 

$ 4 2 ,6 7 5 ,0 0 0 and to ta l IPC d e p o s its o f 

$30,291,000, has applied, pursuant to Section 

18(c) and other provisions of the Federal Deposit 

Insurance Act, for the Corporation's prior consent 

to merge w ith The Citizens National Bank of 

Havre de Grace, Havre de Grace, Maryland (“ C itizens N ational"), w ith total assets of $10,523,000 

and total IPC deposits of $9,053,000. The banks 

would merge under the charter of EB&T w ith the 

tit le "C ounty Banking and Trust Company." 

Incident to the merger, the tw o offices of Citizens 

National would be established as branches of the 

resultant bank.

Competition. EB&T operates its five offices 

throughout Cecil County, which is located in extreme northeastern Maryland. Seven commercial 

banks operate in the county. EB&T controls 33.1 

percent, the largest share, of the IPC deposits held 

by the local offices of the commercial banks operating in Cecil County.

Citizens National has its tw o offices in Havre de 

Grace in adjacent Harford County. It draws the 

bulk of its business from Harford County and the 

Port Deposit-Perryville area of Cecil County.

Effects of the proposed merger would be most 

pronounced in Citizens National's market. Agriculture, light industry, tourism and recreational facilities, retail services, and several m ilitary installations all contribute to the economy of this market. 

The population of the market increased 43 percent 

during the 1960s to a 1970 total of 128,560. C itizens National has the sixth largest share, 3.9 percent, of the IPC deposits held at area offices of the

10 commercial banks operating w ithin this market. 

Of the 43 such offices in the market, 27 are operated by 4 of Maryland's 5 largest banks.

EB&T's closest office to Citizens National is its 

North East branch, which is located 10 road-miles 

northeast of Havre de Grace. This branch has been 

in operation only since July of 1976. EB&T's next 

closest location, its main office in Elkton, is 16 

road-miles northeast of Havre de Grace. There is 

no significant existing com petition between the 

proponents. Although there is a small overlap in 

their trade areas, neither proponent draws a significant am ount of business from the primary trade 

area of the other.

The proponents may legally establish de novo

branches throughout Maryland. Citizens National 

has an aging and unaggressive management, however, and is unlikely to undertake de novo expansion. On the other hand, EB&T may find adjacent 

Harford County attractive for its de novo entry. 

Havre de Grace lies approximately 32 road-miles 

northeast of Baltimore on the Interstate 95 corridor, and as a result, the area has been experiencing substantial population growth during recent 

years. In addition, it has a median household buying level that closely approximates that of the 

State as a whole. The area, therefore, can be 

expected to attract other de novo entrants. This 

probability, together w ith the modest size o f C itizens National, renders insignificant any elimination of potential com petition between the proponents occasioned by their merger.

It appears from the foregoing that the proposed 

merger would not have a significant effect on 

com petition in any relevant area. Thus, the Board 

of Directors is of the opinion that the proposed 

transaction would not, in any section of the countr y , substantially lessen com petition, tend to 

create a monopoly, or in any other manner be in 

restraint of trade.

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80 FEDERAL DEPOSIT INSURANCE CORPORATION

Financial and Managerial Resources; Future

Prospects. The financial resources of both proponents are adequate. The managerial resources of 

EB&T are satisfactory; however, the managerial 

resources of Citizens National are lim ited by the 

lack of a successor for its aging president. Consummation of the proposed merger would eliminate this succession problem. The future prospects of the resultant bank are considered favorable.

Convenience and Needs o f the Community to

be Served. The proposed transaction would have 

little effect on the convenience and needs of the 

local market. The resultant bank would offer no 

services that are not currently available from alternative sources in the relevant area.

The Board of Directors, in light of the foregoing, has concluded that approval of the application is warranted.

R esources

(in

th ousands

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

First City Bank

New Orleans, Louisiana

600 - 1

to purchase certain assets

and assume the deposit

liabilities of

Republic National Bank

of Louisiana

New Orleans

6,654 1

Approved under emergency provisions. No report requested from the A ttorney General.

Basis for Corporation approval, July 29, 1977

First City Bank, New Orleans, Louisiana, a 

newly chartered State nonmember bank having 

capital funds of $600,000, has applied, pursuant 

to Sections 5 and 18(c) of the Federal Deposit Insurance Act, for Federal deposit insurance and for 

consent to purchase certain assets of and assume 

the liability to pay deposits made in Republic 

National Bank of Louisiana, New Orleans, Louisiana, which had total resources of $6,654,300 as of 

July 28, 1977.

As of July 29, 1977, Republic National Bank of 

Louisiana had deposits of $5,001,000 and operated one office. On July 29, 1977, the Federal 

Deposit Insurance Corporation was appointed as 

Receiver of Republic National Bank of Louisiana.

The Board of Directors finds that the failure of 

Republic National Bank of Louisiana requires it to 

act immediately and thus waives publication of 

notice, dispenses w ith the solicitation of competitive reports from other agencies, and authorizes 

the transaction to be consummated immediately.

R esources

(in

th o u san d s

o f d o lla rs )

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Banco Central

y Economias

San Juan (Hato Rey), 

Puerto Rico

10,000 11

to purchase a portion of

the assets and assume the

deposit liabilities of

Banco Economias

San German

235,606 11

Approved under emergency provisions. No report requested from the A ttorney General.

Basis fo r Corporation approval, July 29, 1977

Banco Central y Economias, San Juan (Hato 

Rey), Puerto Rico, a newly chartered Commonwealth nonmember bank having capital funds of 

$10,000,000, has applied, pursuant to Sections 5 

and 18(c) and other provisions of the Federal 

Deposit Insurance Act, for Federal deposit insurance and fo r consent to its purchase o f a portion 

of the assets and assumption of the lia bility to pay 

deposits made in .Banco Economias, San German, 

Puerto Rico, an insured Commonwealth nonmember bank w ith total assets of $235,605,900 as 

of A pril 30, 1977.

The Board of Directors finds that it must act 

immediately to prevent the probable failure of 

Banco Economias and thus waives publication of 

notice, dispenses w ith solicitation of com petitive 

reports from other agencies, and authorizes the 

transaction to be consummated immediately.

Resources

(in

thousands

B a n k in g

o ffic e s in

o p e ra tio n

o f d o llars) B e fo re A fte r

The Commerce Bank and

Trust Company of

Maryland

Bethesda, Maryland 

(change title to Potomac 

Valley Bank)

11,998 3 6

to merge with

Potomac National Bank

Potomac

39,671 3

Summary report by A ttorney General,

June 15, 1977

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, August 8, 1977

The Commerce Bank and Trust Company of 

Maryland, Bethesda, Maryland (“ Commerce"), a 

State nonmember insured bank having total assets 

o f $1 1 ,9 9 8 ,0 0 0 and total IPC deposits of 

$8,754,000, has filed application, 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 w ith the 

title "Potomac Valley Bank" with Potomac National Bank, Potomac, Maryland ("Potomac Nationa l"), a national bank having total assets of 

$ 3 9 ,6 7 1 ,0 0 0 and to ta l IPC d e p o s its o f 

$33,876,000. The fou r approved offices of the 

latter would be established as branches o f the resultant bank, which could commence business 

w ith a total of seven approved offices. It is contemplated that an $800,000 subordinated capital 

debenture, presently an obligation of Potomac 

National, would be repaid follow ing consummation of the proposed merger, and consent to the 

retirement o f this debenture is also requested.

Competition. Commerce operates its three offices in Montgomery County, its main office and 

one branch in Bethesda and a branch in Gaithersburg, 13 road-miles northwest of the main office. 

Potomac National has its main office in Potomac, 

6 road-miles northwest of Bethesda, and one 

branch each in Sumner and Rockville at locations 

respectively 7 road-miles southeast and a like distance northeast of Potomac, all in Montgomery 

County. Potomac National has approval to establish a branch in Poolesville, 18 road-miles northwest of Potomac.

M o n tg o m e ry County, situated immediately 

north of the District of Columbia, is a segment of 

the Washington, D.C.-Maryland-Virginia SMSA. 

Many of the county's residents are employed in 

the D istrict and there is substantial com m utation 

daily between the tw o areas. Strong com petition 

exists between the banks of the county and those 

of the District, and thus, it is appropriate to consider these tw o areas as the relevant geographic 

market fo r purposes of weighing the antitrust 

implications of the proposed merger.*

Montgomery County, 90 percent urbanized, 

had a 1970 population of 522,809, representing a

53.3 percent increase since 1960. The County's

1975 median household buying level of $20,674 

was the highest of any Maryland county and 43.7 

percent higher than the statewide median level. In 

contrast, the District of Columbia recorded a slight

population loss during the 1960s, to a total of 

756,510 in 1970, and its 1975 median household 

buying level was $13,416.

A total of 39 commercial banks operate 280 

offices w ithin the relevant market area, holding 

IPC deposits aggregating $4.4 billion at June 30, 

1976. Commerce, a subsidiary of Mercantile Bankshares Corporation, has 0.2 percent of such deposits while its affiliate, The Citizens National 

Bank, Laurel, has 0.1 percent. Potomac National 

has 0.7 percent of such deposits. The proponents 

have offices located w ithin 3 miles of each other 

and there is existing com petition between them 

which the proposed merger would eliminate. However, in view of the modest IPC deposit market 

shares held by Potomac National and by Commerce and its affiliate, it is concluded that the 

merger would have little com petitive significance.

The merger's elim ination of potential competitio n between the proponents, which may arise 

through their de novo expansion, is also of little 

competitive significance. Considering the modest 

shares of the relevant market held by each proponent and the intense com petition provided by the 

State's 10 largest banking organizations (all represented w ithin Montgomery County) plus the 

District banks in the D istrict of Columbia, it is 

doubtful that the proponents, through the establishment of de novo branches, may be expected to 

attain in the future a degree of com petition between them which w ould m ilitate against approval 

of the proposal.

Under the circumstances presented, it appears 

that the proposed merger would not have a significant effect on com petition, existing or potential, 

in any relevant area. Accordingly, the Board of 

Directors is of the opinion that the proposal would 

not, in any section of the country, substantially 

lessen com petition, tend to create a m onopoly, or 

in any other manner be in restraint of trade.

Financial and Managerial Resources; Future

Prospects. Both proponents have adequate financial and managerial resources, as would the resultant bank. Its future prospects are favorable.

Convenience and Needs o f the Community to

be Served. The services to be offered by the resultant bank are presently available at offices of many 

substantially larger competitors in the relevant 

market. The merger, thus, would have minimal 

effect on the convenience and needs of the market.

The Board of Directors, in light of the foregoing, has concluded that approval of the application is warranted.

*See Basis fo r C orporation Approval o f the merger o f 

Clarendon Bank & Trust Company, A rlin g to n C ounty, 

V irginia and W oodlawn National Bank, Fairfax C ounty, 

Virginia. FD IC Annual Report- 1973, pp. 44-49.

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

Resources

(in

th ousands

o f d o lla rs )

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Citizens & Northern Bank

Ralston, Pennsylvania

91,394 10 12

to merge with

Sullivan County

National Bank

LaPorte

8,156 2

Summary report by A ttorney General,

May 23, 1977

We have reviewed this proposed transaction and 

conclude that it would not have a substantial competitive impact.

Basis fo r Corporation approval, August 8, 1977

Citizens & Northern Bank, Ralston, Pennsylvania (“ C itizens"), a State nonmember insured 

bank w ith total resources o f $91,394,000 and 

total IPC deposits of $76,852,000, 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 Sullivan 

C o u n ty National Bank, LaPorte, Pennsylvania 

("S ullivan"), w ith resources of $8,156,000 and 

total IPC deposits of $6,865,000, under the charter and title of Citizens. As an incident to the 

merger, the two offices of Sullivan would become 

branches of the resulting bank.

Competition. Citizens operates 10 offices in 3 

counties where it may legally branch or merge 

under Pennsylvania law. Citizens operates in L ycoming, Bradford, and Tioga Counties. In addition, it may legally operate in Clinton, Columbia, 

Montour, Northumberland, Potter, Sullivan, and 

Union Counties. Citizens is a full-service bank w ith 

a trust department.

Sullivan operates its main office in LaPorte 

(1970 population 207) and a branch in Dushore 

(1970 population 718), 10 miles to the north. 

Sullivan's trade area is Sullivan County. This county is about 85 percent mountainous and forested. 

The balance is devoted to agriculture w ith a 

lim ited am ount of industry and coal mining.

Citizens' three-county trade area had a population of 210,949 in 1970, up 5.0 percent from the 

1960 census. The trade area of Citizens, like S ullivan's, is predom inantly mountainous and forested 

w ith the balance used fo r agriculture. Each of the 

three counties served had 1975 median household 

buying levels significantly below the $13,365 

statewide figure.

Effects of the proposed merger would be most 

direct and immediate w ithin the primary trade 

area of Sullivan. In this market, the sole competito r, Northern Central Bank, holds 71.4 percent 

of the IPC deposits. Sullivan holds the remaining

28.6 percent. The population of this trade area 

was 5,961 in 1970, representing a 4.6 percent decline from 1960. Citizens' Monroeton Office and 

Sullivan's Dushore Office are the closest offices of 

the tw o banks. These offices, at a distance of 17 

miles from each other, are considered to be serving 

separate trade areas.

Sullivan, in operation since 1909, established a 

de novo branch in 1973. It has followed conservative marketing practices and has chosen not to 

extend its area beyond Sullivan County, although 

legally permitted to branch or merge into the six 

adjacent counties. Citizens has chosen growth by 

merger, having increased by five branches, since 

1970, four of which were the result of mergers. 

While Citizens could branch de novo into Sullivan 

County, it is not considered likely in view of the 

declining population of the county and apparent 

absence of a need fo r additional banking offices.

There are 54 commercial banks operating 157 

offices w ithin the 10-county legal branching area 

of Citizens. These offices held approximately $1.5 

billion in total IPC deposits as of June 30, 1976, 

and Citizens ranked fourth w ith 4.9-percent. The 

proposed merger would add 0.5 percent to C itizens' market share w ith the resultant bank holding 5.4 percent and remaining fou rth in rank. The 

merger is thus viewed as not having a significant 

effect on the structure of commercial banking or 

the concentration of banking resources in the 

trade area.

Based on the foregoing, the Board of Directors 

is of the opinion that the proposed merger would 

not, in any section of the country, substantially 

lessen com petition, tend to create a monopoly, or 

in any other manner be in restraint o f trade.

Financial and Managerial Resources; Future

Prospects. Both banks have satisfactory financial 

and managerial resources fo r the business they do 

as independent institutions, and the same would 

be true of the resulting bank. Its future prospects 

appear favorable.

Convenience and Needs o f the Community to

be Served. Consummation of the proposed merger 

would bring to customers of Sullivan the broad 

range of services of the larger bank, such as significantly larger lending lim its, bank credit card services, computer services, trust services, and a more 

complete line o f credit services.

On the basis of the foregoing inform ation, the 

Board of Directors has concluded that approval of 

the application is warranted.

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Resources

(in

th ousands

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Northern Central Bank

W illiamsport,

Pennsylvania

216,981 13 16

to merge with

The Guarantee Trust and

Safe Deposit Bank of

Shamokin, Pa.

Shamokin

30,580 3

Summary report by A ttorney General, 

July 8, 1977

The only county in which both A pplicant and 

Bank now compete is Northumberland. Currently

17 banks have offices in the county, w ith 13 of 

the 17 being headquartered there. O f those 13, 

o n ly 1 — First National Trust Bank of Sunbury — has branch facilities located outside the 

county. In terms of total deposits, the largest six 

banks represented in the county rank in overall 

size as follows: (1) Pennsylvania National Bank & 

Trust Co. (Schuylkill County), $254 m illion; (2) 

Applicant, $185 m illion; (3) First National Trust 

Bank of Sunbury (Northumberland County), $80 

m illion; (4) Tri-County National Bank (Snyder 

County), $58 m illion; (5) Mid-Penn Bank (Dauphin County), $31 m illion; and (6) Bank, $27 m illion. The remaining seven banks, all located solely 

in the county, ha^e deposits of under $25 m illion.

The 31 banking offices in Northumberland are 

mainly clustered around 5 towns: Sunbury (1970 

population 13,025), Shamokin (1970 population 

11,719), Mount Carmel (1970 population 9,317), 

M ilton (1970 population 7,723), and Watsontown 

(1970 population 2,514). Applicant has a fullservice branch and tw o satellite facilities in and 

around Sunbury, plus tw o branch facilities in M ilton. Bank has its main office and a branch in 

Shamokin, plus a branch in nearby Elysburg. The 

closest offices of the tw o banks are located 

approximately 15 miles apart. Offices of other 

banks are located in both Shamokin and Sunbury, 

but there are no intervening offices between the 

towns. While it appears that the acquisition may 

eliminate some existing com petition in the Sunbury-Sham okin-M ount Carmel area, the effect on 

existing com petition would not be significant.

Moreover, the proposed transaction should not 

have an adverse effect on potential com petition. 

As noted above, seven locally owned banks w ith 

under $25 m illion in deposits would be left in the 

county as potential toe-hold acquisitions for other 

banks deciding to enter the market. Under Pennsylvania's branching law, which permits contiguous 

county branching, potential entrants w ould include banks located in seven counties, including 

large banks located in Harrisburg. De novo entry as 

an alternative to acquisition is unlikely, as the

region is economically depressed and the population-to-bank ratio is already a low 1,595.

We have reviewed this proposed transaction and 

conclude that it would not have a substantially 

adverse effect on com petition.

Basis fo r Corporation approval, August 8, 1977

Northern Central Bank, W illiamsport, Pennsylvania ("C entral” ), a State nonmember insured 

bank w ith total resources of $216,981,000 and 

total IPC deposits of $189,473,000, 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 Guarantee Trust and Safe Deposit Bank of Shamokin, 

Pa., Shamokin, Pennsylvania ("G uarantee"), w ith 

total resources of $30,580,000 and total IPC deposits of $26,586,000. These banks would merge 

under the charter and title of Central. The resultant bank would have a total of 16 offices, including the 3 offices presently operated by Guarantee.

Competition. Central operates a total of 13 

offices: its main office and 2 branches in Williamsport and 2 branches in the Montgomery area, 

about 11 road-miles southeast of W illiamsport, 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 

miles southeast of W illiamsport, all in N orthumberland County; 1 branch in Athens, in no rthern Bradford County, approximately 80 road-miles 

northeast of W illiamsport; and 1 branch each in 

Dushore and Eagles Mere, about 50 road-miles 

northeast and 35 miles northeast of Williamsport, 

respectively, in Sullivan County. An approved, not 

yet open office is located in Muncy Township, 14 

road-miles from W illiamsport in Lycoming County.

Guarantee operates its three offices in N orthumberland County: its main office and one branch 

in Shamokin and a branch in Elysburg, 8 roadmiles north of Shamokin. Northumberland County 

(population 99,190) is known fo r its picturesque 

scenery, agricultural activities, and coal mining, 

although the latter has declined over the years.

The com petitive impact of the proposed merger 

would be most immediate and direct in the local 

area of Pennsylvania which extends 10 to 12 roadmiles from Shamokin. This trade area is served by

19 offices of 10 different banks. Guarantee's share 

of this market's total commercial bank IPC deposits amounts to 12.7 percent and is the third 

largest. Central is not located in this market, its 

nearest office being about 14 miles from Elysburg. 

Only a minimal am ount o f business is drawn by 

either proponent from the service area of the 

other, and thus, it appears that no significant existing com petition between the tw o banks would be 

eliminated by their proposed merger.

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84 FEDERAL DEPOSIT INSURANCE CORPORATION

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 Northumberland 

County like Shamokin and Elysburg, but in view 

of the number of existing banking offices, de novo

branching would not be expected. Guarantee has 

been conservative and has evidenced no interest in 

de novo expansion. The proposed merger, thus, 

would eliminate no significant potential fo r increased com petition between the tw o 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 o f m ultibank holding companies), a total of 54 commercial banks operate 

157 offices and hold IPC area deposits aggregating 

$1.5 billion.

Central has 10.0 percent— the largest share— of 

such deposits and 8.3 percent of the area's commercial banking offices. The proposed transaction 

would increase Central's IPC deposit share in this 

region to 11.7 percent and its share of the commercial banking offices to 10.2 percent. Central 

together w ith the next four ranking banks in the 

region would then hold an aggregate of 35.9 percent of such deposits and 35.7 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 concentration of 

banking resources or the future structure of commercial banking in this relevant area.

Under these circumstances, the Board of Directors is of the opinion that the proposed merger 

would not, in any section of the country, substantially lessen com petition, tend to create a monopoly, or in any other manner be in restraint of 

trade.

Financial and Managerial Resources; Future

Prospects. Both Central and Guarantee 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.

Convenience and Needs o f the Community to

be Served. The merger would bring the specialized 

services o f another of the region's major banks to 

the market area o f Guarantee. More sophisticated 

credit services would be offered by an aggressive 

management operating w ith an increased lending 

lim it of about $1.8 m illion. Enhanced data processing and trust services are expected to become 

available at Guarantee locations.

Based on the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

R esources

(in

thou san d s

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Augusta Bank 8t Trust

Company

Augusta County (P.O. 

Fishersville), Virginia 

(change title to Planters 

Bank & Trust Company 

of Virginia)

4,738 2 7

to merge with

Planters Bank and

Trust Company

Staunton

44,730 5

Summary report by A ttorney General,

June 9, 1977

We have reviewed this proposed transaction and 

conclude that it w ould not have a substantial competitive impact.

Basis fo r Corporation approval, August 8, 1977

Augusta Bank & Trust Company, Augusta 

County (P.O. Fishersville), Virginia ("A ugusta"), a 

State nonmember insured bank w ith total assets of 

$4,738,000 and total IPC deposits of $3,948,000, 

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 

Planters Bank and Trust Company, Staunton, V irginia ("Planters"), a State nonmember insured 

bank w ith total assets of $44,730,000 and total 

IPC deposits of $35,601,000. The merger would 

be effected under the charter of Augusta and w ith 

the title “ Planters Bank & Trust Company o f V irginia." The five offices of Planters w ould be established as branches of the resultant bank, which 

would commence operating w ith a total of seven 

offices. Consent is also sought fo r resultant bank 

to exercise full trust powers.

Competition. Augusta was established September 1, 1972, by directors and shareholders of 

Planters for the purpose of providing eventually a 

broader geographic market for Planters' operations. Planters' present legal branching area comprises the city of Staunton and its Augusta County 

environs w ithin 5 miles. Under the charter of 

A u g u s ta , it co u ld legally establish branches 

throughout Augusta County and in the cities of 

Staunton and Waynesboro.

Since its origin, Augusta has functioned as a de

facto part o f Planters. Individuals who own stock 

control of Augusta also own stock control of 

Planters while 6 o f Planters' 13 directors serve on 

Augusta's 12-member board. There is no significant com petition, existing or potential, between 

these closely related banks.

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In view o f the foregoing, the Board of Directors 

is of the opinion that the proposed merger would 

not, in any section of the country, substantially 

lessen com petition, tend to create a m onopoly, or 

in any other manner be in restraint o f trade.

Financial and Managerial Resources; Future

Prospects. Both Augusta and Planters have adequate financial and managerial resources, as would 

the resultant bank. Its future prospects are favorable.

Convenience and Needs o f the Community to

be Served. The merger would have no discernible 

effect on the convenience and needs of the relevant market.

The Board of Directors, after consideration of 

the foregoing, has concluded that approval o f the 

application is warranted.

R esources

(in

th o u san d s

o f d o lla rs )

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Citizens Bank and Trust

Company of Maryland

Riverdale, Maryland

457,006 47 50

to merge with

Chevy Chase Bank and

Trust Company

Chevy Chase

35,250 3

Summary report by A ttorney General, 

August 5, 1977

We have reviewed this proposed transaction and 

conclude that it would not have a substantial competitive impact.

Basis for Corporation approval, August 22, 1977

Citizens Bank and Trust Company o f Maryland, 

Riverdale, Maryland ("C itizens"), an insured State 

n o n m e m b e r b a n k w ith to ta l assets o f 

$ 4 5 7 ,0 0 6 ,0 0 0 and to ta l IPC de posits of 

$371,659,000, 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 Chevy Chase Bank and Trust Company, 

Chevy Chase, Maryland ("Chevy Chase Bank"), an 

insured State nonmember bank w ith total assets of 

$ 3 5 ,2 5 0 ,0 0 0 and to ta l IPC d e p o s its o f 

$29,331,000. The 3 offices of the latter would be 

established as branches of the resultant bank, 

which would commence business w ith a total of 

55 approved offices.

Competition. Citizens operates 47 offices: 27 

including its main office in Prince Georges County,

12 in Montgomery County, 5 in the Baltimore

area, 2 in Anne Arundel County, and 1 office in 

Charles County. It has approvals for five additional 

offices: two to be located in Prince Georges County and three in Montgomery County.

Chevy Chase Bank has its main office in Chevy 

Chase, Montgomery County, and a branch in the 

same com m unity 2.7 miles south of the main 

office near the D istrict of Columbia boundary. A 

second branch is operated in College Park, Prince 

Georges County, approxim ately 8 miles east of the 

main office.*

The area w ithin which effects o f the proposed 

merger would be most direct and immediate comprises Montgomery County and the District of 

Columbia. The county is situated immediately 

north of the District; both are segments of the 

Washington, D.C.-Maryland-Virginia SMSA. M ontgomery County, approxim ately 90 percent urbanized, had a 1970 population of 522,809, repres e n tin g a 5 3 .3 percent increase during the 

preceding decade. Its 1975 median household buying level of $20,674 was the highest of any Maryland county and 43.7 percent higher than the 

statewide comparable figure. In contrast, the Distric t recorded a slight population loss during the 

1960s, to a 1970 total of 756,510, and its 1975 

median household buying level was $13,416. Many 

residents of the county are employed in the District, commuting daily between the tw o areas. 

Strong com petition exists between the commercial 

banks of the county and those of the D istrict and 

it is appropriate to consider these tw o areas as the 

relevant geographic market for purposes of weighing the antitrust implications of the proposed 

merger.**

W ithin the relevant market, 39 commercial 

banks operate a total o f 280 offices. These banks 

had area IPC deposits of $4.4 billion on June 30, 

1976. Citizens had 1.9 percent of these deposits; 

Chevy Chase Bank had 0.6 percent. Citizens has an 

office in Silver Spring which is located less than 3 

miles east of the main office of Chevy Chase Bank 

and there appears to be some existing com petition 

between the proponents which the proposal would 

eliminate. Also, Citizens has approvals to establish 

a branch in Bethesda, to be located approximately

1.5 miles distant from each of Chevy Chase Bank's 

two Montgomery County offices, and it has an 

application pending fo r approval to establish a 

branch less than 2 miles east of the main office of

*Chevy Chase Bank's College Park branch is located w ith ­

in the Student Union Building of the University of Maryland. Operated under an exclusive franchise, this branch 

represents the only banking o ffice on campus. Serving a 

university-oriented clientele, it is not a com petitive force 

w ith in Prince Georges County as a whole.

**See Basis fo r C orporation Approval of the proposed 

merger o f The Commerce Bank and Trust Company of 

M aryland, Bethesda, Maryland and Potomac National 

Bank, Potomac, Maryland, pp. 80.

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

Chevy Chase Bank. This potential fo r increased 

com petition between the proponents also would 

be eliminated by the proposed merger. These consequences have little competitive significance, 

however, in view of the modest IPC deposit shares 

of the relevant market held by each proponent. 

The resultant bank would have 2.5 percent of the 

area's commercial bank IPC deposits, the eighth 

largest share. A total of 21 other banks in M ontgomery County, including representatives of each 

of Maryland's 10 largest banking organizations, 

and 16 banks w ithin the D istrict of Columbia 

would maintain the intense competitive climate 

which prevails w ithin the relevant market.

From the foregoing it appears that the proposed merger would not have a significant effect 

on com petition, existing or potential, in any relevant area. The Board o f Directors, accordingly, is 

of the opinion that the proposal 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 proponents have adequate financial resources, as would the resultant bank. C itize n s' capable management, administering the 

affairs of Chevy Chase Bank as a part of the resultant bank, would remedy a managerial problem 

which exists at the latter. The resultant bank's 

future prospects are favorable.

Convenience and Needs o f the Community to

be Served. Trust services would become available 

for the first time at Chevy Chase Bank's locations 

as a result of the merger. These and the other services to be offered by the resultant bank, however, 

are presently available at offices of numerous competitors in the relevant market. Thus, the merger 

would have little effect on the convenience and 

needs of the area to be served.

On the basis of the foregoing inform ation, the 

Board of Directors has concluded that approval of 

the application is warranted.

R esources

(in

thousands

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

The New York Bank

for Savings

New Y ork (Manhattan), 

New York

3,371,152 21 25

to merge with

First Federal Savings

and Loan Association of Syracuse

Syracuse

76,492 4

Summary report by A ttorney General, 

December 23, 1976

First Federal's four offices are located in Onondaga County. The county's population of 495,000 

represents about 75 percent of the population of 

the Syracuse SMSA, which also includes tw o adjoining counties. The city of Syracuse has a population of about 187,000, down from its high of

216,000 in 1960; its 1980 population forecast is 

177,000. Based on First Federal's deposit sources, 

the county appears to be the appropriate market 

area.

The closest of First Federal's offices and Bank 

for Savings' Rochester offices are 86 miles apart. 

The closest New Y ork City area office of Bank for 

Savings is 240 miles from First Federal.

First Federal draws about 77 percent in dollar 

amount of its deposits from the city of Syracuse 

and three adjoining communities and 90 percent 

from an area only slightly larger. W ithin this area, 

Bank for Savings has 163 savings accounts w ith 

total deposits of $731,800, equal to 1.1 percent of 

First Federal's deposits. First Federal has 34 

accounts w ith total deposits of $153,000 from 

Bank for Savings' New Y ork metropolitan area, an 

insignificant amount. Only 32 individual depositors have accounts at both institutions. Neither 

institution has a significant amount of loans in the 

area served by the other. It therefore appears that 

direct com petition between Bank fo r Savings and 

First Federal is insubstantial.

Among the four savings and loan associations 

operating in Onondaga County, First Federal is the 

second largest in terms of deposits w ith 32.3 percent. The other three hold, respectively, 38.3 percent, 14.8 percent, and 14.6 percent of the total 

deposits of $203 m illion held by the fou r savings 

and loan associations. In addition, 5 savings banks 

operate about 27 offices in the county which to ­

gether hold deposits of $1.2 billion, and 12 commercial banks, including Citibank, Chase Manh a tta n B ank, Chemical Bank, Bankers Trust 

Company, The Bank of New Y ork, Marine M idland Bank, and several large regional banks, operate more than 100 offices there which together 

hold deposits of $1.2 billion. Since th rift institutions in New Y ork can now offer free personal 

checking accounts, there appears to be a greater 

degree of com petition than form erly between the 

thrifts and the commercial banks fo r individual 

accounts.

New Y ork law allows savings banks to open 

only one branch a year. Thus, the likelihood of 

Bank for Savings branching into the Syracuse area 

is remote.

We conclude that the proposed merger would 

not have an adverse effect upon com petition.

Basis for Corporation approval, August 22, 1977

The New York Bank for Savings, New York 

(Manhattan), New Y ork ("A p p lic a n t"), an insured

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 87

m u tu a l savings bank w ith total resources of 

$ 3 ,3 7 1,1 5 2 ,0 0 0 and to ta l d e p o s its o f 

$2,994,629,000, 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 Federal Savings and Loan 

Association of Syracuse, Syracuse, New York 

("F irs t"), a federally insured savings and loan association w ith total resources of $76,492,000 and 

total deposits of $69,962,000.

Competition. A pplicant operates its main office 

and 16 branches in Manhattan, 2 branches in Westchester County, and 2 branches in Monroe County. It also has the approvals to establish another 

branch in Monroe County. A pplicant is the third 

largest of New York's th rift institutions, holding

3.5 percent of their aggregate deposits.

First has its main office and one branch in Syracuse and one branch each in the suburban communities of DeW itt and North Syracuse. Syracuse, 

centrally located in Onondaga County, is the largest city in central New Y ork State. Onondaga 

County's 1970 population of 472,835 represented 

an increase of 11.8 percent over 1960. Its 1975 

median household buying level of $14,360 was 5.2 

percent above the comparable statewide figure.

The Onondaga County th rift institution market 

is shared by six mutual savings banks and four 

federally insured savings and loan associations. 

First has the fifth largest share, 4.4 percent, of 

deposits aggregating $1,536 billion held by all 

offices of th rift institutions in this market.

The proponents' closest offices are located 

some 80 road-miles apart. Their primary trade 

areas are separate and distinct and no significant 

e x is tin g com petition between the proponents 

would be eliminated by their merger. In addition, 

the possibility of significant com petition developing between Applicant and First through their 

de novo branching is lim ited. Modest-sized First 

would not find feasible its entry into the distant 

and intensely com petitive areas w ithin which 

Applicant maintains its offices. New Y ork law 

limits to one the number of de novo branches a 

th rift institution may establish each year. As a 

result, there is little potential for the development 

of a significant amount of com petition in the foreseeable future if Applicant were to branch de novo

into the Syracuse market.

Based on the foregoing, the Board of Directors 

is of the opinion that the proposed merger would 

not, in any section of the country, substantially 

lessen com petition, tend to create a m onopoly, or 

in any other manner be in restraint of trade.

Financial and Managerial Resources; Future

Prospects. While some weaknesses are noted in the 

condition of Applicant's assets and the level of its 

surplus accounts, its financial and managerial resources are considered adequate fo r purposes of 

this proposal. First's financial and managerial resources are acceptable. The financial and managerial resources of the resultant bank would be 

acceptable. The future prospects of the resultant 

bank also appear to be acceptable.

Convenience and Needs of the Community to

be Served. The proposed merger would have little 

effect on the convenience and needs of the Syracuse market. The resultant institution would offer 

no services that are not today available from alternative sources in the relevant area.

Based on the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

R esources

(in

tho u san d s

o f d o lla rs )

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Anchor Savings Bank

New Y ork (Brooklyn), 

New York

1,308,655 14 19

to merge with

North New York Savings

Bank

White Plains

167,228 5

Summary report by A ttorney General,

A pril 21, 1977

Bank has two offices in White Plains and one in 

Orangeburg, Rockland County, across the Hudson 

River, and two offices in the Bronx, New York 

City. A pplicant has six offices in Brooklyn, four in 

Manhattan, one in Staten Island, tw o in Nassau 

County, and one proposed in S uffolk County.

The closest offices of the two banks are A p p licant's on Madison Avenue at 88th Street in Manhattan and Bank's on East Fordham Road in the 

Bronx, 8.3 miles apart, w ith many competing 

offices between them.

A bout 70 percent of Applicant's total deposits 

come from Brooklyn, 8 percent from Manhattan, 

and another 8 percent from Nassau County. 

Bank's principal sources of deposits are the Bronx, 

accounting for almost half, Westchester County 

about one quarter, and Rockland County about 8 

percent.

The banks report that 243 depositors in common hold 0.9 percent of total deposits of A pplicant, and 1.2 percent of Bank. This is not competitively significant. There are no borrowers in 

common.

Among the 18 savings banks operating 74 offices in Brooklyn, A pplicant ranks fifth w ith 7.3 

percent of total savings banks' deposits of $11 

billion. Among all 36 commercial and savings 

banks operating 259 offices w ith total deposits of 

$13.7 billion, Applicant holds 5.9 percent. Among

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

the 26 savings banks operating 143 offices in Manhattan w ith total deposits of $20.7 billion, A pplicant's $163 m illion represents 0.8 percent. As 

total deposits of both commercial and savings 

banks in Manhattan exceed $118 billion, A p p licant's share is infinitesimal. In the Bronx, Bank's 

deposits of $98.6 m illion represent 3.3 percent of 

deposits of $3 billion fo r the 8 savings banks w ith 

25 offices, and 2.2 percent of all deposits of $4.5 

billion of the 22 banks of both kinds w ith 144 

offices.

In Westchester County, Bank's headquarters, its 

$42.5 m illion in deposits represents 1.3 percent of 

deposits of $3.2 billion of the 22 savings banks 

w ith 64 offices, and 0.7 percent of the 38 banks of 

both types w ith 300 offices and deposits of $5.9 

billion.

In the areas in which each bank now competes, 

neither is a major figure. The resulting bank would 

hold 2.75 percent of assets of all New Y ork Cityheadquartered savings banks, up 0.31 percent from 

Applicant's present 2.44 percent.

New Y ork law allows savings banks to open one 

de novo branch annually. Statewide branching has 

broadened the competitive pressures, and many of 

the savings banks in New Y ork City have already 

moved into Westchester, by acquisition or de novo

entry. Applicant is one of the remaining banks 

seeking to enter Westchester County.

In sum, it does not appear that the proposed 

acquisition would have any im portant adverse 

competitive consequences.

Basis for Corporation approval,

August 31, 1977

Anchor Savings Bank, New Y ork (Brooklyn), 

New Y ork ("A n ch o r"), an insured mutual savings 

bank w ith total resources of $1,308,655,000 and 

total deposits of $1,175,353,000, 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 North New 

Y o rk Savings Bank, White Plains, New Y ork 

("N o rth "), an insured mutual savings bank w ith 

total resources of $167,228,000 and total deposits 

of $157,061,000, under the charter and title of 

the former, and to establish the 5 offices of the 

latter as branches of the resultant bank, increasing 

to 19 the number of its offices.

Competition. Anchor operates a total of 14 

offices: its main office and 5 branches in Brooklyn, 4 branches in Manhattan, and 1 on Staten 

Island in New Y ork C ity; as well as 2 branches in 

Nassau County and 1 in S uffolk County on Long 

Island. A public accommodation office is being 

proposed as a satellite to the Staten Island branch.

North has its main office and one branch in 

Westchester County, tw o branches in Bronx County, and one in Rockland County.

Anchor draws the bulk of its deposits from the 

Boroughs of Brooklyn, Manhattan, and Richmond

and Nassau County. North's deposits originate in 

major part in Westchester, Rockland, and Bronx 

Counties.

Bronx County is situated immediately south of 

Westchester County; the latter is separated from 

Rockland County by the Hudson River. The 

Bronx, w holly urbanized, had a 1970 population 

of 1,471,701, a 3.3 percent increase during the 

1960s, and a 1975 median household buying level 

of $10,114, 25.9 percent below the statewide 

level. Westchester and Rockland Counties had 

respective 1970 populations of 894,104, a 10.5 

percent increase during the decade, and 229,903, a 

concurrent growth of 68.1 percent. Their 1975 

m e dian household buying levels, respectively 

$18,564 and $18,924, were substantially above 

the State's level of $13,649. North has 1.7 percent, the 19th largest share, o f deposits held at offices of 30 mutual savings banks and 26 federally 

insured savings and loan associations in these 3 

areas. Anchor reports that only a modest proportion of its deposits originate in this market.

The five boroughs of New Y ork City and the 

neighboring counties of Rockland and Westchester 

are segments of the New Y ork, New York-New 

Jersey SMSA. These areas, as well as Nassau and 

S uffolk Counties, all have close economic ties. A 

significant proportion o f the working population 

of each of the several counties is employed in New 

Y ork C ity, and the metropolitan th rift institutions 

advertise and are otherwise intensely competitive 

throughout the region. Of this larger economically 

integrated market, Anchor holds 1.7 percent, the 

17th largest share, of the deposits held at area o ffices of 63 mutual savings banks and 79 federally 

insured savings and loan associations. North holds 

0.2 percent of such deposits. Both proponents 

have modest shares of the relevant market, and the 

proposed merger would not eliminate significant 

existing com petition between them.

New Y ork law lim its de novo expansion by a 

mutual savings bank to one branch each year. This 

lim itation effectively restricts the development of 

s ig n ific a n t com petition between Anchor and 

North.

A nchor is the 20th largest of New Y ork th rift 

institutions, holding approximately 1.4 percent of 

their aggregate deposits. Resultant bank, w ith 

some 1.6 percent of such deposits, would become 

the 14th largest th rift institution in the State.

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 m onopoly, or in any 

other manner be in restraint of trade.

Financial and Managerial Resources; Future

Prospects. Both proponents have adequate financial resources. North has a management succession 

problem which Anchor's satisfactory management, 

administering the affairs of the resultant bank,

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 89

would solve. Future prospects of the resultant 

bank are favorable.

Convenience and Needs of the Community to

be Served. Two protestants filed objections to the 

merger application, principally on the basis that 

Anchor had failed to serve the “ convenience and 

needs" of Brooklyn in the area of mortgage and 

home improvement loans. Anchor was provided 

w ith copies of the protestants' data and invited to 

respond. Subsequently, after Anchor had entered 

into negotiations w ith the protestants, the protests 

were withdrawn.

The resultant institution would offer services 

that are com petitive w ith those currently available 

from numerous alternative sources in the relevant 

market. The convenience and needs factor is resolved in favor of the Applicant.

Based on the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

Resou rces

B a n k in g

o ffic e s in

(in

th ousands

o f d o llars)

o p e ra tio n

B e fo re A fte r

Ocean State Bank 10,493 1 3

Santa Monica,

California

(change title to First

Pacific Bank)

to acquire the assets and

assume the liabilities of

First Pacific Bank 28,734 2

Los Angeles

Summary report by A ttorney General, 

August 5, 1977

We have reviewed this proposed transaction and 

conclude that it would not have a substantial competitive impact.

Basis for Corporation approval, 

September 19, 1977

Ocean State Bank, Santa Monica, California 

("Ocean S tate"), a State nonmember insured bank 

w ith total resources of $10,493,000 and total IPC 

deposits of $8,419,000, has applied, pursuant to 

Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the Corporation's prior 

consent to acquire the assets and assume the liabilities of First Pacific Bank, Los Angeles, California 

( " F ir s t P a c ific " ) , w ith to ta l resources of 

$ 2 8 ,7 3 4 ,0 0 0 and to ta l IPC d e p o s its o f 

$23,849,000. The proposed transaction would be 

effected under the charter of Ocean State and w ith 

the title of First Pacific Bank. Incident to the 

transaction, the tw o offices of First Pacific would

be established as branches of the resultant bank, 

thus providing it w ith a total of three offices.

Competition. Ocean State's single office services prim arily the city of Santa Monica and the 

communities of Venice and Ocean Park, south of 

Santa Monica. First Pacific has its main office in 

the city of Los Angeles, servicing prim arily an area 

w ithin a 2-mile radius, encompassing most of the 

West Hollywood district and a small portion of 

western Los Angeles. Its only branch is located in 

the Pacific Design Center, approximately 14 mile 

west of the main office. The proponents' primary 

trade areas are separated by approximately 5 

miles, w ith 9 miles separating their closest offices. 

Neither bank draws a significant amount of business from the primary market of the other.

Effects of the proposed transaction would be 

most direct and immediate in Santa Monica, a 

semi-resort and residential market from which 

Ocean State draws the m ajority of its business. 

Ocean State is 1 of 12 commercial banks represented in the area. The 22 area offices of these 

banks serve Santa Monica's resident population of 

93,500, as well as the small adjacent communities 

to the south of the city, and hold total IPC deposits of $486 m illion. Ocean State has the 10th 

largest share, 1.6 percent, of these deposits. California's nine largest banks control an aggregate of

78.4 percent of such deposits.

The proponents operate in the Los AngelesLong Beach SMSA. First Pacific and Ocean State 

respectively hold 0.1 percent and .03 percent of 

the IPC deposits held by the 88 banks operating in 

this area. The resultant bank would hold 0.2 percent, the 32nd largest share, of the area's IPC 

deposits.

There is no significant existing com petition between the proponents. Consummation of the proposed transaction would not have any substantial 

effect on com petition in any relevant market.

Each proponent may legally enter de novo the 

primary trade area o f the other, but such expansion by either would not result in development of 

significant com petition between them. Both banks 

are of relatively modest size, their markets are 

heavily banked, and intense com petition prevails.

Based on the foregoing, the Board of Directors 

has concluded that the proposed transaction 

would not, in any section of the country, substantially lessen com petition, tend to create a monopoly, or in any other manner be in restraint of 

trade.

Financial and Managerial Resources; Future

Prospects. First Pacific Bank has satisfactory financial and managerial resources. The resultant bank 

w ill be headed by the existing board and senior 

management of First Pacific, which should result 

in implementation of more aggressive and competitive policies which would be better attuned to 

customer needs. Future prospects are considered 

favorable.

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

Convenience and Needs o f the Community to

be Served. Consummation of the proposed transaction w ill not provide any additional services to 

customers of Ocean State, except larger lending 

limits. The potential for improved com m unity 

service rests w ith the more aggressive and cohesive 

management team of the resultant bank.

On the basis of the foregoing inform ation, the 

Board of Directors has concluded that approval of 

the application is warranted.

Resources

(in

th ousands

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Southern Bank and

Trust Company

Greenville, South 

Carolina

337,163 64 66

to merge with

Morgan Bank and Trust

Spartanburg

15,869 2

Summary report by A ttorney General,

July 29, 1977

Southern Bank and Trust and Morgan Bank are 

headquartered about 31 miles apart. Though both 

banks are in the same SMSA, they are not in direct 

com petition in the same county. The resulting 

bank would control approxim ately 11.6 percent of 

the total deposits in the SMSA, increasing Southern's market share by 1.3 percent. However, since 

the SMSA is not highly concentrated, this merger 

would have very little effect on com petition.

In sum, the proposed acquisition will eliminate 

some existing com petition and w ill slightly increase concentration in commercial banking in the 

Greenville-Spartanburg SMSA.

Basis fo r Corporation approval, 

September 19, 1977

Southern Bank and Trust Company, Greenville, 

South Carolina (“ S outhern''), an insured State 

n o n m e m b e r bank w ith to ta l resources of 

$ 3 3 7 ,1 6 3 ,0 0 0 and to ta l IPC deposits of 

$259,924,000, has applied, pursuant to Section 

18(c) and other provisions of the Federal Deposit 

Insurance Act, for the Corporation's prior consent 

to merge w ith Morgan Bank and Trust, Spartanburg, South Carolina ("M organ"), an insured State 

n o n m e m b e r bank w ith to ta l resources of 

$1 5 ,8 6 9 ,0 0 0 and to ta l IPC d e p o s its o f 

$10,268,000. The merger would be accomplished 

under the charter and title of Southern. Following 

the transaction, the 2 offices of Morgan would be

established as branches of the resultant bank, 

which would then have 66 approved offices.

Competition. Southern has 64 approved offices 

in 20 counties. Its service area encompasses all 

sections of the State except the eastern and 

central-eastern portions. Major markets are Greenville and Pickens Counties in the northwestern 

section, Richland and Lexington Counties including the capital city of Columbia in the central 

p o r tio n , Orangeburg County in the centralsouthwestern section, and Y ork County in the extreme northern part of the State. Much of the 

trade area is economically dependent on large 

industrial manufacturing plants. While these plants 

were generally lim ited to textile manufacture in 

the past, there has been expansion into various 

other manufacturing areas in the last 10 years. 

Columbia, the State capital and seat of government of Richland County is located near the geographic center of South Carolina. In addition to 

the various State agencies based here, the area 

benefits from Fort Jackson which is a large army 

training center.

Morgan operates its main office and a branch in 

Spartanburg, Spartanburg County. While this is in 

the northwestern quadrant o f the State, it is a 

county not presently served by Southern. The 

economy of this area is dependent upon approximately 40 large textile plants located in Spartanburg and its environs. The population of Spartanburg County was 173,724 in 1970, representing a

10.8 percent increase from a decade earlier.

The effects of the proposed merger would be 

most immediate and direct in Spartanburg County. 

A total of 10 banks operate 41 offices in the county. Of the 10 banks, Morgan ranked sixth as of 

June 30, 1976, w ith 4.0 percent and 3.6 percent of 

total deposits and total IPC deposits, respectively. 

The four leading banks held an aggregate of 80.8 

percent and 81.6 percent, respectively. Southern 

does not operate in this market. The proponents' 

closest offices are over 20 miles apart. Thus, the 

propose d transaction would neither eliminate 

existing com petition nor increase concentration in 

the relevant market.

South Carolina law permits statewide de novo

branching. Morgan is not expected to seek de novo

branches in light of deficit earnings fo r 1975 and 

1976. If it were to seek a de novo branch in the 

future, it would probably locate it w ithin its present trade area so as to maintain adequate management control. Southern has a history of aggressive 

de novo branching, and absent the proposed transaction, it could be expected to enter the market de

novo in the future. There are a large number of 

banks and banking offices currently in the county, 

however, including most of the State's largest 

banks. These factors mitigate the significance of 

any potential fo r the development of com petition 

that would be eliminated as a result of this proposal.

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 91

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 o f trade.

Financial and Managerial Resources; Future

Prospects. The financial resources of both proponents are adequate. The managerial resources of 

Southern are satisfactory. Future prospects of the 

resultant bank are favorable.

Convenience and Needs o f the Community to

be Served. No change in the services presently 

available at numerous commercial bank offices in 

the relevant market would result from the consummation of the proposed transaction.

Based on the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

R esources

(in

thou san d s

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

First Bank & Trust of

Idaho

Malad C ity, Idaho

24,896 4 5

to merge with

The First National Bank

of Grace

Grace

7,067 1

Summary report by A ttorney General,

May 11, 1977

Both A pplicant and Bank operate in Caribou 

County which is located in the lower southeastern 

corner of Idaho near the W yoming and Utah borders. Bank's only office is located in Grace, Idaho, 

and Applicant's nearest branch is located in Soda 

Springs about 10 miles northeast of Grace. Grace 

is a small com m unity, basically agrarian in nature, 

w ith very little population growth and lim ited 

commercial development. The whole of Caribou 

County is basically agrarian in nature. As of the 

1970 census, Caribou County had a population of 

6,534 while Grace's population was 826. According to Applicant, the area is growing rapidly.

As stated above, Applicant's nearest branch to 

Bank is about 10 miles northeast o f Grace. There 

are no intervening banks, savings and loan associations, or loan companies. In fact, there are only 

four banks in Caribou County, one of which has 

just recently been organized (Security State Bank, 

total deposits o f $500,000). Bank is the only bank 

in Caribou County not located in Soda Springs. It

therefore appears that there is direct com petition 

between A pplicant and Bank which the proposed 

merger would eliminate.

In addition to eliminating direct com petition 

between Applicant and Bank, the proposed merger 

w ill eliminate potential com petition in Grace and 

Caribou County. A pplicant could theoretically 

enter Grace de novo by establishing a branch, 

which is permissible under Idaho banking law, but 

the size of the town suggests that this is a rather 

remote possibility. The merger of Applicant and 

Bank w ill not only have the effect of eliminating 

Applicant as a potential entrant into Grace but it 

may also close the market to future entry, firm ly 

entrenching Applicant as the leading bank in 

Caribou County.

Further, the proposed merger w ill produce a 

significant increase in concentration in Caribou 

County. Presently, Applicant and Bank control 

about 27 percent and 24 percent, respectively, of 

Caribou County's total deposits and after the 

merger A pplicant w ill hold about 51 percent of 

the county's total deposits and it w ill be the largest bank in the county.

We therefore conclude that overall the proposed merger would have an adverse effect upon 

com petition.

Basis for Corporation approval, 

September 30, 1977

First Bank & Trust of Idaho, Malad City, Idaho 

("F irst Bank"), an insured State nonmember bank 

w ith total resources of $24,896,000 and total IPC 

deposits of $19,384,000, 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 First National Bank of Grace, Grace, Idaho 

(" F N B G ra c e "), w ith to ta l resources of 

$7,067,000 and total IPC deposits of $5,988,000. 

Consent is also sought to establish the sole office 

of FNB Grace as a branch of the resultant bank, 

which would commence operating w ith a total of 

five offices.

Competition. First Bank has its main office in 

Malad City, one branch in Preston 35 miles to the 

east, and tw o branches in Soda Springs approximately 75 road-miles to the northeast, all in the 

southeastern corner of Idaho. These communities 

are respectively the county seats and major population centers of Oneida, Franklin, and Caribou 

Counties. Composing First Bank's primary trade 

area, these three counties had a combined 1970 

population of 16,771, representing an overall 7.0 

percent decrease since 1960. The area's economy 

is largely agricultural, w ith field crops and livestock being major income sources.

FNB Grace operates its sole office in Grace, a 

city of 826 residents in southwestern Caribou 

County. The bank draws most of its business from 

Grace and its environs, including the unincorpoDigitized for FRASER 

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

rated communities of Alexander, 6 miles to the 

north, and Thatcher, 11 miles to the south. FNB 

Grace is the only commercial bank that operates in 

Grace.

The proposed transaction would have its most 

immediate com petitive effects in Caribou County. 

The county had a 1970 population of 6,534, representing a 9.3 percent increase during the preceding decade. Its median household buying level 

in 1975 was $16,459, which was 38 percent above 

the comparable statewide figure. Caribou County's 

economy is largely based on agriculture, although 

phosphate mining has become a significant industry.

There are four commercial banks w ith a total of 

five offices operating in Caribou County. Four of 

the offices, including a branch and a recently 

opened drive-in facility of First Bank, are located 

in the city of Soda Springs, the county seat. The 

city of Grace and FNB Grace's office are located

11 miles southwest of Soda Springs. FNB Grace 

and First Bank are respectively the county's 

second and third largest commercial banks, holding 26.7 percent and 25.0 percent of the total 

commercial bank IPC deposits as o f June 30, 

1976. The Soda Springs office of The Idaho First 

National Bank, a $1.0-billion deposit institution 

and the State's largest commercial bank, holds

48.3 percent of the county's IPC deposits. In addition, Security State Bank of Mud Lake recently 

established an office in Soda Springs. Upon consummation of the proposed merger, the resultant 

bank w ill hold 51.7 percent of the commercial 

bank IPC deposits, representing the largest share. 

Although the proponents report that each draws 

only minimal business from the com m unity in 

which the other has its office, existing com petition 

between the proponents w ill be eliminated by 

their merger. In view of the market's very lim ited 

population and the presence of the State's largest 

commercial bank, however, this elim ination of 

com petition is not viewed to be of sufficient significance to warrant denial of the application.

Idaho banks may establish de novo branches 

throughout the State. The potential for significant 

increased com petition to develop between the 

proponents through such expansion, however, is 

considered to be minimal. FNB Grace is an ultraconservative operation and its com petitive stature 

has waned during recent years. Despite significant 

economic improvement in the local Grace market, 

FNB Grace has seen its IPC deposits increase by 

only 10 percent during the 2 years prior to yearend 1976. While First Bank may be considered 

likely to expand in the market through de novo

branching should the local economy continue to 

grow, there are other banks, including the State's 

two major commercial banks, which also would be 

attracted to the area. Currently, The Idaho First 

National Bank has a branch in Soda Springs and 

First Security Bank of Idaho, National Association, the State's second largest commercial bank, 

has a branch located 40 miles south of Grace.

It appears from the foregoing that the proposed 

merger would not have a significant effect on competition in any relevant area. The Board of Directors, accordingly, is of the opinion that the proposal would not, in any section of the country, 

substantially lessen com petition, tend to create a 

m onopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future

Prospects. Both proponents have adequate financial resources, and the resultant bank, under First 

B a n k's satisfactory management, would have 

favorable future prospects.

Convenience and Needs o f the Community to

be Served. Customers of FNB Grace's local market 

should benefit from an expanded pool of credit, 

available under increased lending limits and offered by the aggressive management of First Bank. 

Trust facilities, credit cards, and automated banking would be available for the first time to FNB 

Grace's customers.

A fter consideration of the foregoing, the Board 

of Directors has concluded that approval of the 

application is warranted.

R esources

(in

th o u san d s

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

The Sumitomo Bank of 841,048 24 43

California

San Francisco,

California

to purchase a portion of the

assets and assume a portion

of the deposit liabilities of

The Bank of California, 178,112* 19*

National Association

San Francisco

*IPC deposits of the 19 offices o f The Bank of California 

to be transferred in this transaction (assets not reported 

by office).

Summary report by A ttorney General, 

October 18, 1977

We have reviewed this proposed transaction and 

conclude that it would not have a substantial competitive impact.

Basis for Corporation approval, October 25, 1977

The Sumitom o Bank of California, San Francisco, California ("S um itom o"), a State nonmember insured bank w ith total resources of 

$ 8 4 1 ,0 4 8 ,0 0 0 and to ta l IPC deposits of

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 93

$571,975,000, has applied, pursuant to Section 

18(c) and other provisions of the Federal Deposit 

Insurance Act, for the Corporation's prior consent 

to purchase a portion of the assets of and assume 

liability to pay a portion of the deposits made in 

The Bank of California, National Association, San 

Francisco, California (“ Other Bank"). Sumitom o 

also has applied fo r consent to establish 19 of the 

branches of The Bank of California, National Association, which had aggregate IPC deposits of 

$178,112,000 as of June 30, 1976, as branches, 

thereby increasing the number of its California 

offices to 43.

Competition. Sum itom o operates 24 California 

offices, prim arily in the San Francisco and Los 

Angeles urbanized areas, and an uninsured Nassau 

office. It is the 10th largest commercial bank in 

the State, controlling 0.8 percent of total commercial bank deposits.

Other Bank represents the State's seventh largest commercial bank. As a part of an internal restructuring program, Other Bank has announced 

that it proposes to sell 33 of its offices. The 19 

offices involved in this proposal result from this 

announced plan to sell.

Ten of the branches Sum itom o proposed to 

purchase are located w ithin the Los Angeles-Long 

Beach Standard Metropolitan Statistical Area. 

These branches hold 0.4 percent of commercial 

bank IPC deposits held in the SMSA. Seven 

branches are located in the four-county area of 

Alameda, San Francisco, San Mateo, and Santa 

Clara. These branches hold 0.2 percent of the 

area's commercial bank IPC deposits. In addition, 

one branch each is located in the cities of Watsonville and Monterey. These branches hold relatively 

small portions of the commercial bank IPC deposits of their respective markets.

Sum itom o operates offices in both the Los 

Angeles-Long Beach SMSA market and the fourcounty market of Alameda, San Francisco, San 

Mateo, and Santa Clara. There w ould be some 

elim ination of existing com petition in these areas 

as a result of this proposal; however, it would not 

be significant. Sumitom o controls no more than

1.0 percent of the IPC deposits in either of these 

markets. Both of these markets are dominated by 

the State's largest banks and in each market the 

aggregate IPC deposit share held by the three largest banks exceeds 65 percent.

Upon approval of the proposal, Sumitom o 

would retain its position as the 10th largest commercial bank in the State and hold only small 

market shares in its primary market areas. State 

law permits statewide branch banking and Sumitom o has been relatively active in de novo branching. Therefore, it is considered likely that Sumitom o would be active in de novo branching in the 

market areas involved in this proposal. Other 

Bank, having expressed a desire to reduce its 

branch system, would not be expected to consider

further de novo activity. While some potential 

com petition would be eliminated by approval of 

this proposal. Other Bank has made clear its intention of divesting itself of these branches. Sumitom o is a modest-sized entity among California 

banks, where the markets are dominated by major 

statewide banks. Acquisition of the branches by 

Sumitom o would be less anticom petitive than 

would acquisition by any of the State's larger 

banks.

For these reasons, it appears that the approval 

of this application would not eliminate significant 

existing or potential com petition between the two 

proponents, nor would it affect the structure of 

commercial banking in any relevant area. The 

Board of Directors, therefore, has concluded that 

the proposed transaction would not, in any section 

of the country, substantially lessen com petition, 

tend to create a m onopoly, or in any other manner 

be in restraint of trade.

Financial and Managerial Resources; Future

Prospects. Sum itom o has satisfactory financial and 

managerial resources and favorable future prospe cts. The acquisition of the 19 additional 

branches should have no adverse effect upon these 

factors.

Convenience and Needs o f the Community to

be Served. As both Sum itom o and Other Bank 

offer a wide range of banking services, little change 

in public convenience is expected to result from 

approval of this proposal.

Based on the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

Resources

(in

th o u san d s

o f d o lla rs )

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

The Valley Bank and

Trust Company

Shelton, Connecticut

17,397 1 2

to merge with

James Staples and

Company

Bridgeport

2,124 1

Summary report by A ttorney General, 

August 8, 1977

We have examined the proposal and conclude 

that it is not adverse to com petition.

Basis for Corporation approval, October 25, 1977

The Valley Bank and Trust Company, Shelton, 

Connecticut ("V alley Bank"), an insured State 

nonmember bank w ith total assets o f $17,397,000

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

and total IPC deposits of $11,288,000, 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 

James Staples and Company, Bridgeport, Connecticut ("O ther Bank"), an uninsured private banking 

company w ith total assets of $2,124,000 and total 

IPC deposits of $1,924,000. The banks would 

merge under the title and charter of Valley Bank. 

The single office of Other Bank would become the 

main office of the resultant bank, w ith Valley 

B ank's present main office redesignated as a 

branch.

Competition. Valley Bank operates a single office in Fairfield County which is located in southwestern Connecticut. It has an approved but unopened branch which w ill be located approximately 3 miles from its main office.

Other Bank operates a single office in the central business district of Bridgeport, the largest city 

in Fairfield County. Other Bank is unique as it is 

the only remaining private banking firm in the 

State.

Valley Bank and Other Bank are 2 o f the 27 

commercial banks represented in Fairfield County. 

The 211 commercial banking offices operated 

w ith in th e c o u n ty h o ld an aggregate of 

$2,123,787,000 in IPC deposits. Valley Bank's 

share of these deposits is only 0.4 percent, while 

Other Bank holds only 0.1 percent.

The effects of the proposed merger would be 

most direct and immediate w ithin the primary 

trade area of Other Bank. This trade area, the city 

of Bridgeport, is a manufacturing and retail center. 

The 1970 population of the trade area, 156,542, 

represents a 0.1 percent decline from 1960. Other 

Bank has the smallest share, 0.5 percent, of the 

IPC deposits held by the seven commercial banks 

operating w ithin this trade area. Valley Bank does 

not operate w ithin this market.

Significant com petition does not exist between 

the two banks. The offices of Valley Bank and 

Other Bank are approximately 11 miles apart. 

Valley Bank also has an approved but unopened 

branch which w ill be located approximately 8 

miles from Other Bank, but numerous offices of 

other commercial banks lie between the tw o locations. While Valley Bank does have some deposit 

accounts w ith Bridgeport addresses, the m ajority 

result from director-related accounts and residents 

of Shelton who operate businesses in Bridgeport.

There is little likelihood that significant competition could develop between the proponents. 

Other Bank may not branch de novo due to State 

law. Valley Bank may not branch de novo into 

Bridgeport due to home office protection.

It appears from the foregoing that the proposed 

merger would not have a significant effect on competition in any relevant area. Thus, the Board of 

Directors is of the opinion that the proposed transaction would not, in any section of the country,

substantially lessen com petition, tend to create a 

m onopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future

Prospects. The financial and managerial resources 

of Valley Bank and the resultant bank would be 

satisfactory, and the proposed transaction would 

eliminate the management continuation d iffic u lty 

faced by Other Bank. The future prospects of the 

resultant bank are considered favorable.

Convenience and Needs o f the Community to

be Served. The proposed transaction would make 

available to those businesses and individuals located w ithin Other Bank's primary trade area a 

much more competitive banking alternative. The 

existing customers of Other Bank would receive 

the benefit of higher interest rates on deposits, a 

higher lending lim it, and Federal deposit insurance. The loss of home office protection fo r the 

city of Shelton, which would result from the transaction, would open the city to de novo branching.

The Board of Directors, in light of the foregoing, has concluded that approval of the application is warranted.

R esources

(in

thousands

o f d o lla rs )

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

First Bank & Trust

Company of Batesville

Batesville, Indiana

28,646 1 2

to merge with

The State Bank of Milan

Milan

12,978 1

Summary report by A ttorney General, 

August 8, 1977

We have reviewed this proposed transaction and 

conclude that it would not have a substantial competitive impact.

Basis for Corporation approval, October 25, 1977

First Bank & Trust Company of Batesville, 

Batesville, Indiana ("F irst B ank"), a State nonmember insured bank w ith total resources of 

$ 2 8 ,6 4 6 ,0 0 0 and to ta l IPC d e p o s its o f 

$22,420,000, has applied, pursuant to Section 

18(c) and other provisions of the Federal Deposit 

Insurance Act, for the Corporation's prior consent 

to effect a merger w ith The State Bank of Milan, 

Milan, Indiana ("State Bank"), with total resources of $12,978,000 and total IPC deposits of 

$10,804,000, under the charter and title of First

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 95

Bank. Incident to the transaction, the sole office 

of State Bank would become a branch of the resultant bank.

Competition. First Bank operates its only office 

in Batesville which is on the extreme northern 

edge of Ripley County. State Bank operates its 

only office in Milan which is in the eastern part of 

the county. Ripley County is located in southeastern Indiana, roughly 65 miles southeast of 

Indianapolis, the State capital, and 45 miles northwest of Cincinnati, Ohio.

Ripley County is agriculturally oriented. Both 

Batesville and Milan serve as trade centers for their 

respective communities. The Batesville economy is 

based, to some extent, on small industry. The 

Milan area is more rural. The population of Ripley 

County in 1970 was 21,138, which represents an 

increase of only 2.4 percent from 1960. Batesville's population of 3,799 in 1970 represented a

13.4 percent increase over 1960. Milan experienced only a slight population increase during the 

same period from 1,174 in 1960 to 1,260 in 1970.

Batesville and Milan are both located in the 

northern half of Ripley County about 20 roadmiles apart. There are three commercial bank offices in this intervening area, including the largest 

bank in the county. Road access between the tw o 

towns is not direct. Although both First Bank and 

State Bank have offices in the same county, neither originates any appreciable volume of business 

from the local area served by the other. Each bank 

faces com petition from other larger commercial 

banks at closer locations.

The proposed merger would have its most 

im m ediate competitive impact in and around 

Milan, the area served by the smaller of these tw o 

predom inantly rural banks. W ithin a 10-mile radius 

of Milan, there are offices of six commercial 

banks. State Bank holds 17.4 percent of their combined IPC deposits. First Bank has no offices w ith ­

in this market. Given these facts, it appears that 

there is no significant existing com petition between the tw o banks which would be eliminated 

by the proposed merger.

Either of the participating banks could establish 

de novo branches anywhere in Ripley County, subject to home office protection. This does not 

appear likely, however, in view of both the localized scope of operation of each bank and the lim ­

ited number of towns which are not already served 

by a home office of an existing bank. In addition, 

there is already 1 bank fo r each 2,349 persons in 

R iple y County, even w ithout considering the 

easily accessible commercial banking offices located in the Greensburg and Lawrenceburg-Aurora 

areas in the neighboring counties of Decatur and 

Dearborn. The proposed merger would therefore 

eliminate no significant potential fo r the development of com petition between the tw o banks.

In Ripley County, the maximum legal branching and merging area of both banks, there are 9

commercial banks operating a total of 11 offices. 

These banks hold aggregate IPC deposits of $109 

m illion. First Bank holds 20.6 percent and State 

holds 9.9 percent of these deposits, ranking second 

and fifth respectively. The resultant bank would 

rank first w ith 30.5 percent. While the proposed 

merger would create a larger concentration of 

deposits for the resultant bank, it is not believed 

this concentration would significantly affect com ­

mercial bank com petition w ithin the county, and 

county residents would not experience any meaningful decline in suitable alternatives from which 

to do their banking business.

Under these circumstances, the Board of Directors is of the opinion that the proposed merger 

would not, in any section of the country, substantially lessen com petition, tend to create a monopoly, or in any other manner be in restraint of 

trade.

Financial and Managerial Resources; Future

Prospects. Financial and managerial resources of 

each institution, and of the resultant bank, are 

considered satisfactory. The future prospects of 

the resultant bank are favorable.

Convenience and Needs of the Community to

be Served. The benefits presently available to customers of both banks w ill remain basically unchanged. State Bank's customers would have available daily interest on savings deposits; customers 

of both banks may benefit from the increased 

lending lim its of the resultant bank.

Based on the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

R esources

(in

th o u san d s

o f d o lla rs )

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Intercontinental Bank of

Miami Beach

Miami Beach, Florida 

(change title to Intercontinental Bank)

88,595 3 6

to merge with

Intercontinental Bank of

Miami

Miami

40,795 3

Summary report by A ttorney General,

July 29, 1977

We have reviewed this proposed transaction and 

conclude that it would not have a substantial competitive impact.

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96 FEDERAL DEPOSIT INSURANCE CORPORATION

Basis for Corporation approval, 

November 14, 1977

Intercontinental Bank of Miami Beach, Miami 

Beach, Florida ("A p p lica n t"), an insured State 

n o n m e m b e r bank w ith to ta l resources of 

$ 8 8 ,5 9 5 ,0 0 0 and to ta l IPC d e p o s its o f 

$52,770,000, 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 Intercontinental Bank of Miami, 

M ia m i, F lo rid a , w ith to ta l re source s o f 

$ 4 0 ,7 9 5 ,0 0 0 and to ta l IPC d e p o s its o f 

$27,858,000. These banks would merge under the 

charter of A pplicant and w ith the title "In terco ntinental Bank." The three existing offices o f the 

other bank would be established as branches of the 

resultant bank.

Competition. The participating banks share 

common management and the m ajority of the 

stock of each bank is owned by the same fam ily.* 

The initial affiliation of the proponents did not 

eliminate any significant existing or potential competition between the tw o banks, and it did not 

have any material effect on the local structure of 

commercial banking. Both banks were inconsequential factors in commercial bank com petition 

in Dade County at the time of their affiliation, and 

they remain so today. In Dade County there were 

46 banking organizations operating 144 offices 

w ith aggregate IPC deposits of $4,706,052,000 at 

June 30, 1976. The bank resulting from the proposed merger would have merely 1.4 percent of 

these deposits. Therefore, the proposed merger 

would have no significant effects on com petition.

In view of the foregoing, the Board of Directors 

is of the opinion that the proposed merger would 

not, in any section of the country, substantially 

lessen com petition, tend to create a m onopoly, or 

in any other manner be in restraint of trade.

Financial and Managerial Resources; Future

Prospects. The proponents' financial and managerial resources are considered adequate for the purposes of this proposal, as would be the case fo r the 

resultant bank. The future prospects of the resultant bank appear more favorable than those of the 

two banks operating individually.

*The proponents have been affiliated since 1975. The 

C orporation has consistently taken the position that 

where control o f a bank is acquired by stock acquisition 

not subject to regulatory scrutiny, the effect o f a merger 

may be the circum vention of the com petitive standards 

o f the Bank Merger Act. In such circumstances, the 

Board o f Directors has ignored the a ffilia tio n in its 

assessment o f the proposal. Therefore, in the instant 

application, since the proponents' a ffilia tio n has not 

heretofore been subject to regulatory scrutiny, the a ffiliation is of no persuasive value in determ ining fo r purposes o f the Bank Merger A ct, what com petitive impact, 

if any, the proposed transaction may have.

Convenience and Needs o f the Community to

be Served. The services to be offered in the relevant market by the resultant bank would not d iffer materially from those presently offered by 

each proponent.

On the basis of the foregoing inform ation, the 

Board of Directors has concluded that approval of 

the application is warranted.

Resou rces

(in

th ousands

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Capital Bank of North 27,730 2 6

Bay Village

North Bay Village,

Florida

(change title to

Capital Bank)

to merge with

Capital Bank of Kendale 28,236 2

Kendall

and

Capital Bank of 15,796 2

Miami, N.A.

Miami

Summary report by A ttorney General, 

August 24, 1977

We have reviewed this proposed transaction and 

conclude that it would not have a substantial competitive impact.

Basis for Corporation approval, 

November 14, 1977

Capital Bank of North Bay Village, North Bay 

Village, Florida ("A p p lica n t"), an insured State 

n o n m e m b e r bank w ith to ta l resources of 

$ 2 7 ,7 3 0 ,0 0 0 and to ta l IPC d e p o s its o f 

$23,460,000, 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 Capital Bank of Kendale, Kendall, 

Florida, w ith total resources of $28,236,000 and 

total IPC deposits of $24,059,000, and Capital 

Bank of Miami, N.A., Miami, Florida, w ith total 

resources of $15,796,000 and total IPC deposits of 

$9,905,000. These banks would merge under the 

charter of A pplicant and w ith the title "Capital 

Bank." The four existing offices of the other 

banks would be established as branches of the resultant bank.

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 97

Competition. The participating banks share 

common management and effective stock control 

of each bank rests w ith the same individual.* The 

proponents' initial affiliation did not eliminate any 

significant existing or potential com petition, and it 

did not have any material effect on the local structure of commercial banking. A t the time of their 

affiliation, all three banks were inconsequential 

factors in commercial bank com petition in Dade 

County, and they remain so today. In Dade County there were 46 banking organizations operating 

144 o ffic e s w ith aggregate IPC deposits of 

$4,706,052,000 at June 30, 1976. The bank resulting from the proposed merger would have 

merely 1.1 percent of these deposits. Therefore, 

the merger now proposed would have no significant effects on com petition.

In view of the foregoing, 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 m onopoly, or 

in any other manner be in restraint of trade.

Financial and Managerial Resources; Future

Prospects. The proponents" financial and managerial resources, after capita! addition is completed, 

would be considered adequate for the purposes of 

this proposal. The future prospects of each proponent would appear more favorable as part of the 

resultant bank.

Convenience and Needs o f the Community to

be Served. The services to be offered in the relevant market by the resultant bank would not d iffer materially from those presently offered by 

each proponent.

On the basis of the foregoing inform ation, the 

Board of D irectors has con clud ed that approval of 

the ap p lication is warranted.

*The proponents have been affiliated since 1975. The 

C orporation has consistently taken the position that 

where control o f a bank is acquired by stock acquisition 

not subject to regulatory scrutiny, the effect o f a merger 

may be the circum vention of the com petitive standards 

of the Bank Merger Act. In such circumstances, the 

Board o f Directors has ignored the a ffilia tio n in its 

assessment o f the proposal. Therefore, in the instant 

application, since the proponents' a ffilia tio n has not 

heretofore been subject to regulatory scrutiny, the a ffiliation is o f no persuasive value in determ ining, fo r pu rposes of the Bank Merger A ct, what com petitive impact, 

if any., the proposed transaction may have.

Resou rces

(in

th o u san d s

of d o lla rs )

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Inter-State Trust

Company

White River Junction, 

Verm ont

(change title to First 

Inter-State Bank)

22,010 4 4

to merge with

The First National Bank

of White River Junction

White River Junction

11,968 4

Summary report by A ttorney General, 

August 24, 1977

We have reviewed this proposed transaction and 

conclude that it would not have a substantial competitive impact.

Basis for Corporation approval, 

November 14, 1977

Inter-State Trust Company, White River Junction, Verm ont ("Inter-S tate"), an insured State 

nonmember bank w ith total assets of $22,010,000 

and total IPC deposits of $19,481,000, 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 White River Junction, 

White River Junction, Verm ont ("F irst N ational"), 

w ith total resources of $11,968,000 and total IPC 

deposits of $8,398,000. The tw o banks would 

merge under the charter of Inter-State and w ith 

the title "F irst Inter-State Bank." Incident to the 

merger would be the consolidation of operations 

at the four offices currently shared by Inter-State 

and First National.

Competition. Inter-State and First National 

operate four offices, all in Windsor County, Vermont. Windsor County is located in eastern Vermont, contiguous to the New Hampshire border. 

First National's main office is interconnected by a 

doorway w ith the main office of Inter-State and 

its three branches are located in shared quarters 

w ith those of Inter-State. The parties to the merger agreement are affiliated through a common 

directorate and common shareholders. A t the time 

of establishment of Inter-State, national banking 

laws prohibited the granting of real estate loans by 

national banks. For this reason, the then-directors 

of First National obtained a State charter and 

formed Inter-State to receive savings accounts and 

make real estate loans. Since its inception, InterState has prim arily confined its activities to those 

generally associated w ith th rift institutions.

The primary market areas o f the proponents are 

identical. This market would include the Verm ont 

towns of Thetford, Strafford, Sharon, Pomfret,

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

H artford, Hartland, and Norwich, as well as the 

New Hampshire communities of Hanover and 

Lebanon. The population of this market area was 

31,587 in 1970, representing an 8.7 percent increase over 1960. White River Junction and the 

nearby New Hampshire area serve as a center of 

business activity for the Upper Connecticut River 

Valley. Eight commercial banks operate 16 offices 

w ithin the designated market area. Inter-State is 

the third largest commercial bank in this market, 

holding 20.7 percent of the commercial bank IPC 

deposits. Only a small amount of these deposits 

are IPC demand deposits. First National is the 

fourth largest commercial bank operating w ithin 

this market area, holding 9.3 percent of commercial bank IPC deposits. The resultant bank would 

rank number one in the market area, holding 30.0 

percent of the commercial bank IPC deposits.

Although the proponents serve the same primary market, they tend to complement, rather 

than actively compete, w ith each other. Inter-State 

functions prim arily as a th rift institution, accepting time and savings deposits and making real 

estate loans, while First National functions as a 

commercial bank. If savings banks were included 

as com petition to the applying banks, the primary 

market share of the resultant bank would drop to

12.9 percent, and it would become the third largest of the commercial and savings banks represented in the market. Although approval of the 

proposed merger would technically allow the 

resultant bank to hold a large portion of its primary market IPC deposits, the practical effect of 

the merger on com petition would be negligible as 

the two applying banks have been so closely related since 1911 that they already resemble a 

single banking institution.

Verm ont banking laws provide fo r statewide 

branching. Future de novo com petition between 

Inter-State and First National seems highly unlikely due to stock ownership similarities, identical 

directorates, and shared banking offices. If this 

proposal were to be approved, the resultant bank 

would become the 11th largest commercial bank 

in the State, but it would hold only 2.0 percent of 

the State's commercial bank deposits.

It appears that consummation of the proposed 

merger would have no significant effect on competition in any relevant area and would merely 

formalize a relation that has existed for over 65 

years. In view of the foregoing, the Board of Directors is of the opinion that the proposed merger 

would not, in any section of the country, substantially lessen com petition, tend to create a monopoly, or in any other manner be in restraint of 

trade.

Financial and Managerial Resources; Future

Prospects. Both Inter-State and First National have 

adequate financial and managerial resources as 

would the resultant bank. The future prospects of 

the resultant bank appear favorable.

Convenience and Needs o f the Community to

be Served. Other than an increased lending lim it, 

the services to be offered by the resultant bank 

would be little different from those offered by the 

existing banks.

Based on the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

R esources

(in

th ousands

B a n k in g

o ffic e s in

o p e ra tio n

o f d o llars) B e fo re A fte r

Citizens DeKalb Bank

Clarkston, Georgia

8,835 3 6

to merge with

DeKalb Exchange Bank

DeKalb County 

(P.O. Decatur)

7,197 3

Summary report by A ttorney General, 

September 21, 1977

We have reviewed this proposed transaction and 

conclude that it would not have a substantial competitive impact.

Basis for Corporation approval,

November 22, 1977

C itiz e n s DeKalb Bank, Clarkston, Georgia 

("Citizens Bank"), an insured State nonmember 

bank w ith total assets of $8,835,000 and total IPC 

deposits of $7,341,000, 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 

DeKalb Exchange Bank, DeKalb County (P.O. 

Decatur), Georgia ("Exchange Bank"), also an 

insured State nonmember bank, w ith total resources of $7,197,000 and total IPC deposits of 

$6,183,000. Incident to the merger, the three 

offices of Exchange Bank would be established as 

branches of the resultant bank.

Competition. Citizens Bank and Exchange Bank 

each operate three offices w ithin DeKalb County. 

The tw o banks have been affiliated through common stock ownership since the inception of Exchange Bank in 1970. J. Mack Robinson, the 

principal shareholder in each of the applying 

banks, was instrumental in the form ation of both. 

The same individual presently serves as chairman 

of the board of directors of both banks. DeKalb 

County contains a small portion of the city of 

Atlanta, and it and 14 other counties compose the 

Atlanta Standard Metropolitan Statistical Area.

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 99

The population of DeKalb County was 415,387 in 

1970, representing a 61.8 percent increase from 

1960.

The 95 offices of the 16 commercial banks 

operating in DeKalb County hold $596,420,000 in 

commercial bank IPC deposits. The Citizens and 

Southern Bank system dominates the DeKalb 

County banking market, holding 32.8 percent of 

the commercial bank IPC deposits. Exchange Bank 

holds merely 0.9 percent of such deposits, the 

fourth smallest share, and Citizens Bank holds 1.2 

percent, the fifth smallest share. The resultant 

bank would hold only 2.1 percent of the commercial bank IPC deposits in DeKalb County, and 

it would be in com petition w ith some of the largest banks in the State.* Although the banking 

markets of the applicants overlap and their closest 

offices are only 2 Y2 miles apart, the banks do not 

actively compete w ith each other due to their 

common ownership.

Although disaffiliation of the tw o banks is 

possible, such an event is unlikely because stock 

control o f the banks has been held by the same 

individual since the inception of each. Thus, the 

proposal would eliminate no significant potential 

c o m p e titio n . Consummation of the proposal 

w o u ld fo r m a lly re co g n ize these tw o noncompeting banks as being one banking institution.

From the foregoing data it appears that the proposed merger would have no significant effect on 

com petition in any relevant area. Thus, the Board 

of Directors is of the opinion that the proposed 

merger w ould not, in any section o f the country, 

substantially lessen com petition, tend to create a 

monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future

Prospects. A pproval of the proposal would 

strengthen the financial and managerial resources 

of the applying banks. The resultant bank would 

appear to have favorable prospects.

Convenience and Needs o f the Community to

be Served. The merger would have little effect on 

the services now offered by each of the participating banks.

On the basis of the foregoing inform ation, the 

Board of Directors has concluded that approval of 

the application is warranted.

* Besides co n tro llin g the proponents, Mr. Robinson controls Roswell Bank, Roswell, Georgia. Roswell Bank 

operates in DeKalb C ounty and holds 1.4 percent of the 

commercial bank IPC deposits in DeKalb County.

Resources

(in

th o u san d s

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

The Mississippi Bank

Jackson, Mississippi

178,163 13 15

to merge with

The First National Bank

of Canton

Canton

18,401 2

Summary report by A ttorney General, 

September 14, 1977

Although Applicant's main office is about 25 

miles south of Bank's main office, three of A pplicant's branches are located w ithin approximately 7 

miles of Bank's Ridgefield branch. Offices of other 

banks provide com petitive alternatives in the intervening area, and the application indicates that 

there is only a slight overlap in the parties' service 

areas. Nevertheless, it appears that the proposed 

merger would eliminate some existing com petition. Moreover, Applicant could, under Mississippi 

law, establish branches in the vicinity of Ridgefield 

in southern Madison County, a growing residential 

area according to the application. The proposed 

merger, therefore, would eliminate the potential 

for increased com petition in the future. However, 

it does not appear that concentration in commercial banking w ill be substantially increased in any 

relevant banking market.

Basis for Corporation approval,

November 22, 1977

T h e M ississippi Bank, Jackson, Mississippi 

("Jackson Bank"), an insured State nonmember 

bank w ith total resources of $178,163,000 and 

total IPC deposits of $73,862,000, 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 First National Bank of Canton, 

Canton, Mississippi ("F irst Canton"), w ith total 

resources of $18,401,000 and total IPC deposits of 

$13,770,000. Incident to the merger, the 3 approved offices of First Canton would be established as branches of the resultant bank, increasing 

to 16 the total number of its approved offices.

Competition. Jackson Bank operates 13 offices 

in southwest Mississippi, near the city of Jackson. 

Jackson is the largest city in the State, w ith its 

1970 population of 153,968 representing a 6.6 

percent increase over 1960.

First Canton operates its main office in Canton, 

approximately 20 miles from the northern edge of 

Jackson, and a single branch in Ridgeland, approximately 5 miles from the northern edge of Jackson. It has received approval fo r a new but unopened drive-in branch to be located near its main

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100 FEDERAL DEPOSIT INSURANCE CORPORATION

office. Canton, w ith a 1970 population of 10,503, 

is centrally located in Madison County. Madison 

County had a 1970 population of 29,737, representing a decrease of 9.6 percent from 1960. Its

1976 median household buying level of $8,636 

was substantially below that of the Jackson metropolitan area, $12,996, and the State level of 

$9,830.

Effects of the proposed merger would be most 

immediate and direct in First Canton's primary 

market area which is composed of Madison County and, due to Ridgeland's proxim ity, the city of 

Jackson. There are 64 offices of 12 commercial 

banks operating w ithin this market. Jackson Bank 

has the third largest share of commercial bank IPC 

deposits w ithin this market area, 5.8 percent; however, the tw o largest banks in the State dominate 

this market w ith 84.7 percent of its commercial 

bank IPC deposits. First Canton has the sixth largest share of the market, w ith 1.7 percent. A lthough this proposal would merge banks w ith the 

third and sixth largest shares of First Canton's 

primary market area, the resultant bank would 

control only 7.5 percent of the market's commercial bank IPC deposits. Approval of the proposal, 

therefore, would eliminate a small am ount of competition between the applying banks. Adequate 

banking alternatives would remain, however, including offices of the two largest banks in the 

State.

Mississippi law provides for branch banking and 

the legal branching areas of the applying banks 

overlap to a considerable extent. First Canton has 

established only one de novo branch (Ridgeland in 

1962) other than the in-process, drive-in facility, 

and it w ould not be expected to undertake an 

active course in de novo branching. Jackson Bank 

has been active in de novo branching; however, the 

city of Canton, already served by offices of three 

commercial banks, appears adequately banked and 

would not offer an attractive de novo market. 

Jackson Bank is already represented in the north 

Jackson-Ridgeland area and it would not be expected to engage in any further de novo branching 

in this area in the foreseeable future. Thus, approval of this proposal would not result in a significant lessening of potential com petition.

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 Jackson Bank and First Canton 

have adequate financial and managerial resources. 

With the anticipated injection of additional capital, the resultant bank would have favorable 

future prospects.

Convenience and Needs of the Community to

be Served. The merger would provide increased 

services to customers of First Canton, including a 

larger lending lim it, computer services, and expanded trust services.

On the basis of the foregoing inform ation, the 

Board of Directors has concluded that approval of 

the application is warranted.

Resou rces

(in

thousands

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Metropolitan Savings

Bank

New Y ork (B rooklyn), 

New Y ork

1,186,923 13 18

to merge with

Fulton Savings Bank,

Kings County

New Y ork (Brooklyn)

407,059 5

Summary report by A ttorney General, 

August 5, 1977

The two closest offices of the banks are in 

Brooklyn and 1.9 miles apart. Their offices in the 

other counties are farther apart, and in all cases 

there are competitive alternatives conveniently 

accessible in the surrounding areas. The application reports that a sampling survey showed no loan 

overlap and a very small deposit overlap between 

the parties.

Applicant ranks 19th among the 43 savings 

banks headquartered in New York City and 7th 

among the 18 savings banks w ith offices in Kings 

County, holding 6.8 percent of the 18 banks' total 

Kings County deposits which exceed $11 billion. 

Bank ranks 36th among the 43 savings banks headquartered in New York City and 14th among the

18 savings banks w ith offices in Kings County, 

holding 2.3 percent of the $11 billion in deposits.

While the proposal would eliminate some existing com petition and the potential fo r increased 

com petition in the future, it apparently would not 

significantly increase concentration among savings 

banks in any relevant market.

Basis fo r Corporation approval, 

November 22, 1977

M etropolitan Savings Bank, New Y ork (Brooklyn ), New York ("M e tro p o lita n "), an insured 

m u tu a l savings bank w ith total resources of 

$ 1,1 8 6 , 9 2 3 , 0 0 0 and to ta l d e p o s its o f 

$1,056,510,000, has applied, pursuant to Section 

18(c) and other provisions of the Federal Deposit

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 101

Insurance Act, for the Corporation's prior consent 

to merge w ith Fulton Savings Bank, Kings County, 

New Y ork (B rooklyn), New Y ork ("F u lto n "), 

with total resources of $407,059,000 and total deposits of $368,821,000. The merger would be 

effected under the charter and title of M etropolitan. Incident to the transaction, the 5 operating 

offices and 1 approved but unopened office of 

Fulton would become branches of the resultant 

bank, increasing to 19 the number of its approved 

offices.

Competition. Metropolitan presently operates a 

total of 13 offices: its main office and 7 branches 

in Brooklyn, 1 office in Queens, and 2 offices in 

both Manhattan and Nassau County. M etropolitan's prim ary trade area comprises the boroughs 

of Brooklyn, Manhattan, and Queens in New York 

C ity, and adjacent Nassau County.

Fulton has its main office and one branch in 

Brooklyn, one office in Queens, and tw o offices in 

Nassau County. A second office to be located in 

Queens has been approved but is unopened. Fulton services essentially the same trade area as 

Metropolitan w ith the exception of Manhattan.

The proponents' closest offices are branch locations situated in Brooklyn, approximately 1.85 

miles apart. In this densely populated area, however, local service areas are generally confined to 

small neighborhoods, and there are numerous 

th rift institution offices in the intervening and 

surrounding areas. Thus, there is no significant 

existing com petition between the tw o banks which 

would be eliminated by the proposed merger.

W ithin the overall trade area, Metropolitan and 

Fulton hold 1.9 percent and 0.7 percent, respectively, of the $51.6 billion in deposits held by area 

offices of 40 mutual savings banks and 55 federally insured savings and loan associations. Metropolitan is the 21st largest of New Y ork's th rift 

institutions, holding 1.1 percent of their aggregate 

deposits. The resultant bank, w ith 1.6 percent of 

such deposits, would rank 12th. In light of the size 

of each of the two institutions relative to the 

market as a whole and the numerous competing 

th rift institutions, the proposed merger would 

have a negligible effect on the concentration of 

th rift institution resources.

New Y ork law permits th rift institutions to 

establish only one de novo branch per year. In 

view of the relative size of each of the proponents 

and the intense com petition prevailing w ithin the 

market, there appears to be little potential for 

significant com petition to develop between M etropolitan and Fulton in the foreseeable future.

In light of the foregoing, the Board of Directors 

is of the opinion that the proposed merger would 

not, in any section of the country, substantially 

lessen com petition, tend to create a m onopoly, or 

in any other manner be in restraint of trade.

Financial and Managerial Resources; Future

Prospects. Both Metropolitan and Fulton have

satisfactory financial and managerial resources. 

The proposed merger would combine the strong 

surplus position of Fulton w ith the good earnings 

record of Metropolitan. Potential managerial succession problems at both banks would be eliminated. Each of the proponent banks has enjoyed 

favorable deposit growth in recent years, and 

future prospects for the resultant bank appear 

favorable.

Convenience and Needs o f the Community to

be Served. The proposed merger would produce a 

larger institution which would be in a better position to provide funds for both residential and 

commercial mortgages to present and future customers in the trade area. In addition, the resultant 

bank w ill offer home improvement loans, apartment and commercial construction loans, and 

cooperative apartment loans which are not presently available at Fulton offices.

The Board of Directors, considering the foregoing inform ation, has concluded that approval of 

the application is warranted.

R esources

(in

th ousands

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Schroder Trust Company

New Y ork (iVlanhattan), 

New Y ork

(change title to J. Henry 

Schroder Bank & Trust 

Company)

155,420 1 1

to merge with

J. Henry Schroder

Banking Corporation

New Y ork (Manhattan)

463,987 r

* Domestic offices

Summary report by A ttorney General, 

August 31, 1977

The banks are both w holly owned subsidiaries 

of the same bank holding company. As such, the 

proposed transaction is essentially a corporate reorganization and would have no effect on com petition.

Basis for Corporation approval, 

November 22, 1977

Schroder Trust Company, New Y ork (Manhattan), New Y ork ("Schroder T rust"), a State 

m e m b e r b a n k w it h to ta l re source s o f 

$155,420,000 and total deposits of $138,576,000, 

has applied, pursuant to Section 18(c) of the Federal Deposit Insurance Act, fo r the Corporation's 

prior consent to merge w ith J. Henry Schroder

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

Banking Corporation, New York (Manhattan), 

New Y ork (“ Schroder Banking"), a noninsured 

institution w ith total resources of $463,987,000 

and total credit balances of $382,161,000. The 

merger would be consummated under the charter 

of Schroder Trust and w ith the title "J. Henry 

Schroder Bank & Trust Company."

Competition. Schroder Trust and Schroder 

Banking are both w holly owned (except for directors' qualifying shares) subsidiaries of Schroders 

Limited, a major English financial holding company. The proposed merger represents a restructuring of the holding company's United States 

banking interests.

Inasmuch as the proposed merger is in the nature of an internal corporate reorganization and 

involves no new acquisitions, its consummation 

would have no effect on com petition in any relevant area. Therefore, 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 the proponents are satisfactory. With the proposed capital infusion, future prospects for the 

resultant bank appear favorable.

Convenience and Needs o f the Community to

be Served. The proposed merger would be a corporate reorganization and would not affect the 

convenience and needs of the com m unity.

On the basis of the foregoing inform ation, the 

Board of Directors has concluded that approval of 

the application is warranted.

Resources

(in

thousa nds

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Peoples Bank & Trust

Company

Rocky Mount, North 

Carolina

279,587 40 41

to purchase the assets and

assume the deposit

liabilities of

Roanoke Rapids BranchSouthern National Bank

of North Carolina

Roanoke Rapids

1,952* 1

*IPC deposits. Assets not reported by office.

Summary report by A ttorney General, 

October 6, 1977

We have reviewed this proposed transaction and 

conclude that it would not have a substantial competitive impact.

Basis for Corporation approval,

November 22, 1977

Peoples Bank & Trust Company, Rocky Mount, 

North Carolina (“ Peoples Bank"), an insured State 

n o n m e m b e r bank w ith to ta l resources of 

$ 2 7 9 ,5 8 7 ,0 0 0 and to ta l IPC deposits of 

$212,586,000, has applied, pursuant to Section 

18(c) and other provisions of the Federal Deposit 

Insurance Act, for the Corporation's consent to a 

purchase and assumption transaction w ith Southern National Bank of North Carolina, Lumberton, 

North Carolina (“ Southern N ational"), w ith total 

resources of $374,728,000 and total IPC deposits 

of $289,642,000. By the agreement, Peoples Bank 

would purchase the assets of and assume the liability to pay deposits made in the Roanoke Rapids 

Branch of Southern National, increasing the number of approved offices of Peoples Bank by 1 to 

42.

Competition. The main office of Peoples Bank 

is located in Rocky Mount, North Carolina, and its 

40 offices service central and northern portions of 

the State. Southern National, headquartered in 

Lumberton, North Carolina, has 61 offices and 

services central and southern portions of North 

Carolina. The proponents represent the State's 

10th and 7th largest commercial banks, holding

1.9 percent and 2.6 percent, respectively, of the 

aggregate deposits held by commercial banks operating in the State.

The city of Roanoke Rapids is located in northeastern North Carolina near the Virginia State 

border. Southern National established its Roanoke 

Rapids Branch in 1971 as the initial step of an 

expansion into the northeastern portion of the 

State. Since its opening, the branch has not prospered and Southern National has made no further 

attempts to expand w ithin this area.

The effects of the proposed transaction would 

be most pronounced in that area w ithin 15 roadmiles of the Roanoke Rapids Branch. There are 

presently 14 offices of 6 commercial banks, including 1 branch of Peoples Bank, operating w ith ­

in this market. Southern National, through the 

Roanoke Rapids Branch, controls merely 3.0 percent of the market's IPC deposits, the least significant portion of any bank in the market. Peoples 

Bank controls 10.0 percent of such deposits, the 

fourth largest share. Upon consummation of the 

p ro p o se d transaction, Peoples Bank's relative 

market position would not change. In addition, 

there would be no reduction in the number of 

banking offices w ithin the trade area, and five 

significant alternatives fo r commercial banking 

services would remain.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 103

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 manner be in restraint of trade.

Financial and Managerial Resources; Future

Prospects. Both proponents have satisfactory 

financial and managerial resources, as would the 

resultant bank. The future prospects appear favorable.

Convenience and Needs o f the Community to

be Served. Consummation of this proposed transaction would have no material effect in the trade 

area now being served. The level of services would 

not be changed and the number of banking alternatives appears to be adequate.

Based on the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

Resources

(in

th o u san d s

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Provident Savings Bank 561,928 19 21

Jersey C ity, New Jersey

to purchase the assets and

assume the liabilities of

The First National Bank 25,973 2

of Dunellen

Dunellen

Summary report by A ttorney General, 

October 6, 1977

We have reviewed this proposed transaction and 

conclude that it would not have a substantial competitive impact.

Basis for Corporation approval,

November 30, 1977

Provident Savings Bank, Jersey City, New Jersey ("P rovident"), an insured mutual savings bank 

w ith total resources of $561,928,000 and total deposits of $518,484,000, 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 to assume 

the liability to pay the deposits made in The First 

National Bank of Dunellen, Dunellen, New Jersey 

( " F ir s t N a tio n a l" ), w ith total resources of 

$25,973,000 and total deposits of $22,497,000. 

Incident to the transaction, the tw o offices of 

First National would be established as branches of 

the resultant bank.

Competition. Provident operates 19 offices, and 

has approval for 2 new but unopened offices, in 

eastern and northeastern New Jersey, prim arily in 

the area of Jersey City. As of December 31, 1976, 

Provident was the fou rth largest savings bank in 

New Jersey, holding 7.7 percent of the State's savings banks' total deposits.

First National operates its main office in the 

borough of Dunellen (Middlesex County) and a 

single branch in nearby Green Brook Township 

(Somerset County). The tw o offices are located in 

north-central New Jersey, approximately 20 roadmiles southwest of Newark. The 1970 populations 

of Dunellen and Green Brook Township were 

7,072 and 4,302, respectively.

The effects of the proposed transaction would 

be most immediate and direct in First National's 

trade area which is composed of the extreme 

north-central portion of Middlesex County (Dunellen and Middlesex Boroughs and the contiguous 

portion of Piscataway Township), south-central 

Somerset County (North Plainfield Borough and 

Green Brook and Warren Townships), and the city 

of Plainfield in Union County. The 1970 population of this trade area was approximately 104,000, 

which represents a 17 percent increase over 1960. 

Eleven commercial banks operate 22 offices in this 

area. As of June 30, 1976, these offices held 

$264,342,000 in IPC deposits, and First National 

held the fourth largest share, 7.6 percent, of these 

deposits. In addition, one mutual savings bank 

operates four offices w ithin this trade area.

There would appear to be no present com petition between the applying banks, as Provident is 

not represented in First National's market area. 

Their main offices are 31 road-miles apart, and the 

nearest of their offices are 27 road-miles apart.

Although First National is a commercial bank 

while Provident is a savings bank, it appears that 

most of the services presently being performed by 

First National could be performed by Provident. 

Most affected by the proposal would be businessmen and merchants who would lose a commercial 

banking source. While approval of the proposal 

would result in only a single commercial banking 

office remaining in Dunellen Borough and no 

commercial banking offices remaining in Green 

Brook Township, it appears that there are adequate commercial banking alternatives remaining 

in the trade area and located only a few miles from 

both Dunellen and Green Brook Township.

New Jersey law permits statewide branching for 

both commercial banks and mutual savings banks, 

subject to certain lim itations. First National has 

not been active in de novo branching, opening 

only one such branch in its 70-year history. Provident has been-active in de novo branching; however, the populations of Dunellen Borough and 

Green Brook Township have reportedly stabilized 

since 1970, making de novo entry by Provident 

unlikely.

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104 FEDERAL DEPOSIT INSURANCE CORPORATION

From the foregoing data, it appears that the 

proposed transaction would have no significant 

effect on com petition in any relevant area. Therefore, the Board of Directors is of the opinion that 

the proposed transaction would not, in any section 

of the country, substantially lessen com petition, 

tend to create a m onopoly, or in any other manner 

be in restraint o f trade.

Financial and Managerial Resources; Future

Prospects. Both Provident and First National have 

adequate financial and managerial resources, as 

would the resultant bank. The future prospects of 

the resultant bank would appear favorable.

Convenience and Needs o f the Community to

be Served. As previously mentioned, the proposed 

transaction would eliminate a commercial banking 

source in Dunellen and Green Brook Township. 

Approval of the proposal would serve to benefit 

the com m unity, however, by the resultant bank 

paying higher rates on savings deposits, offering 

time deposits (which First National has ceased to 

do), and offering com petitive mortgage rates.

Based on the foregoing inform ation, the Board 

of Directors has concluded that approval of the 

application is warranted.

Resources

(in

th o u san d s

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

The NAB Bank & Trust

Company (in organization)

Stratford, Connecticut 

(change title to The 

North American Bank 

& Trust Company)

5

to merge with

The North American

Bank and Trust

Company

W olcott

22,023 3

and purchase the assets and

assume the deposit

liabilities of

Bank of Stratford

S tratford

13,092 2

Summary report by A ttorney General, 

December 7, 1977

North American's nearest office to Stratford is 

in Monroe, about 18 miles away, and there are 

several communities and many banks in the intervening area. Its other two offices are north of 

Waterbury, more than 30 miles away from Stratford. It therefore appears that there is little direct 

com petition between North American and Bank of 

Stratford.

The proposed transaction contemplates that the 

resulting bank w ill be headquartered in Stratford, 

and thus no other existing commercial bank w ill 

be permitted to open a de novo branch there. 

However, several of the State's largest banks already have offices in Stratford.

In view of the relatively small size of the tw o 

banks, the absence of com petition between them, 

and the condition of Bank of Stratford (its loss of 

approximately $1.3 m illion over the 2-year period 

1975-1976 has apparently severely reduced its 

operating effectiveness), the com petitive effect of 

the proposed transaction does not appear adverse.

Basis for Corporation approval,

December 16, 1977

Pursuant to Section 5 of the Federal Deposit 

Insurance Act, application has been filed for Federal deposit insurance on behalf of The NAB Bank

& Trust Company, Stratford, Connecticut ("N A B 

Bank"), a proposed new bank in organization. In 

addition, application has been filed, under Section 

18(c) and other provisions of the Federal Deposit 

Insurance Act, for consent for NAB Bank to merge 

w ith The North American Bank and Trust Company, W olcott, Connecticut ("N o rth Am erican"), 

an insured State nonmember bank w ith total resources o f $22,023,000 and total IPC deposits of 

$17,456,000, under the charter of NAB Bank and 

w ith the title "The North American Bank & Trust 

Com pany," and to purchase the assets of and 

assume the lia bility to pay deposits made in Bank 

of Stratford, Stratford, Connecticut ("S tratford 

Bank"), an insured State nonmember bank w ith 

total resources of $13,092,000 and total IPC deposits of $10,923,000. NAB Bank would commence operation w ith its main office at the present location of the main office of Stratford Bank 

and would establish the sole branch of the latter 

and the three existing offices of North American 

as branches of the resultant bank.

The Corporation, upon the request of the Bank 

Commissioner of the State of Connecticut, has 

advised the A ttorney General, the Board o f Governors of the Federal Reserve System, and the 

Com ptroller of the Currency of the existence of an 

emergency requiring expeditious action pursuant 

to paragraph 6 of Section 18(c) of the Federal 

Deposit Insurance Act. The publication required 

by the Bank Merger A ct has been completed.

Competition. In its present precarious financial 

condition, S tratford Bank cannot be considered a 

significant com petitor. In any event it has only 2.4 

percent of the IPC deposits in S tratford and adjac e n t Bridgeport. The larger Bridgeport banks 

dominate the area, and North American is not represented in the local market. Its closest office is in

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 105

Monroe, about 11 miles north; but the towns of 

Shelton and Trum bull intervene and there are 

numerous alternative banking offices there. Further, North American is among the smaller banks 

in Connecticut, and its acquisition (via NAB Bank) 

of Stratford Bank would appear to present virtually no anticom petitive problems.

Under these 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. Resources of Stratford Bank are inadequate and its future viability is in grave doubt. 

North American has a sound asset structure and 

satisfactory management. Prospects fo r the resultant bank are satisfactory.

Convenience and Needs o f the Community to

be Served. Consummation of the proposal would 

preclude any interruption of banking services for 

the clientele of S tratford Bank. These individuals 

should also benefit from the resulting larger, sound 

institution.

Based on the foregoing, the Board of Directors 

has concluded that approval of the applications is 

warranted.

Resources

(in

th ousands

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

The Chartered Bank of

London

San Francisco, 

California

284,870 17 33

to merge with

Commercial and Farmers

National Bank

Oxnard

101,010 16

Summary report by A ttorney General, 

November 21, 1977

The main offices o f the parties are approximately 300 miles apart, and their tw o nearest 

offices (Applicant's in downtown Los Angeles and 

Bank's in Simi Valley) are separated by at least 40 

road-miles, and by a large number of commercial 

banking alternatives. The application indicates that 

there is an insignificant, if any, am ount o f deposit 

and loan overlap between the parties. Therefore, it 

does not appear that the proposed merger would 

have any appreciable effect on existing com petition.

Under California law, which permits unlim ited 

branching, A pplicant could enter de novo the areas 

presently served by Bank. Although Applicant 

considered alone might not be deemed to be a 

significant potential entrant, its parent is an international holding company which held assets on 

March 31, 1976, of 6.7 billion pounds (then equivalent to $12.9 billion). It is this holding company, 

moreover, that plans to provide $7 m illion to 

finance the proposed merger. The presence o f this 

ample and w illing source of funds, Applicant's 

demonstrated willingness to expand by de novo

branching, its expressed desire to achieve statewide 

representation, and the attractiveness of the area 

in which Bank operates fo r de novo entry establish 

Applicant as a likely de novo entrant into that 

area. Ventura County, in which 11 o f Bank's 14 

offices are located, is one of the fastest growing 

areas in California. Its population has grown 18 

percent since 1970, to 451,700. The county is 

prim arily residential, and most of its population is 

in several large towns in the county's southern tier, 

along the freeways leading to Los Angeles.

Commercial banking in Ventura County is 

highly concentrated. On June 30, 1976, the four 

largest banks held 77 percent of the county's IPC 

demand deposits, and the tw o largest held 52 percent. Bank is the fou rth largest in the county, 

holding 9 percent of county IPC demand deposits.

In sum, while there are other banking organizations of substantial size which could enter Ventura 

County de novo, the proposed merger would elim ­

inate A pplicant as a potential com petitor in that 

area and its consummation, therefore, would have 

some adverse com petitive effects.

Basis for Corporation approval,

December 16, 1977

The Chartered Bank of London, San Francisco, 

C a lifo rn ia ("Chartered Bank"), a State nonmember insured bank w ith total resources of 

$ 2 8 4 ,8 7 0 ,0 0 0 and to ta l IPC deposits of 

$221,440,000, 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 and Farmers National 

Bank, Oxnard, California ("C om m ercial"), w ith 

total resources of $101,010,000 and total IPC 

deposits of $66,719,000. The banks w ould merge 

under the charter and title of Chartered Bank, and 

incident to the merger, the 16 existing offices of 

Commercial would become branches o f the resulting bank, increasing the number of its offices to 

33.

Competition. Chartered Bank operates 17 o ffices. Ten of these offices are located in the San 

Francisco area, six are located in the San Diego 

area, and one is in Los Angeles. Chartered Bank is 

the 22nd largest bank in the State holding 0.3 percent o f total commercial bank deposits.

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

Commercial operates 16 offices in Ventura and 

Santa Barbara Counties in southern California. 

Commercial is the 49th largest bank in the State 

holding 0.1 percent of total commercial bank deposits.

The proposed merger would have its most direct effects in the tw o trade areas in which 

Commercial operates. These are Ventura County 

and the Santa Barbara metropolitan area.

Ventura County had a 1970 population of 

378,497. Fourteen banks operate 97 offices and 

hold aggregate IPC deposits of $742,892,000 in 

this market. Commercial operates 13 offices in this 

market and it holds 6.9 percent of the market's 

IPC deposits, the fou rth largest share. Chartered 

Bank does not operate in this market. W ithin 

Ventura County, the two largest banks in the State 

hold 32.3 percent and 25.1 percent, respectively, 

of the IPC deposits, and the three largest banks 

hold 72.7 percent of the IPC deposits.

The Santa Barbara m etropolitan area banking 

market consists of that portion of Santa Barbara 

County south of the Santa Ynez Mountains. A 

total of 12 commercial banks, including some of 

the State's largest, operate in this market. W ith 1.4 

percent of the IPC deposits, Commercial is the 

market's third smallest bank. Chartered Bank does 

not operate in this market.

Chartered Bank is not presently represented in 

either of the relevant markets. Commercial's shares 

of the markets are relatively minor and the markets are dominated by the State's largest banks. 

The proposed merger would eliminate no significant existing com petition.

C a lifo rn ia law permits statewide de novo

branching. Chartered Bank has demonstrated a 

willingness to expand by de novo branching and it 

has expressed a desire to achieve statewide representation. It is considered likely, therefore, that 

Chartered Bank would enter the relevant markets 

through de novo branching. Commercial is not 

contemplating expansion into the trade areas serviced by Chartered Bank because of the costs involved and the heavy com petition already existing 

in these markets. While the proposed merger 

would eliminate some potential com petition, in 

view of the proponents' relative sizes and the 

dominance of the relevant markets by a small 

number o f institutions, this is not viewed as significant.

For these reasons, it appears that the approval 

of the merger would not eliminate significant 

existing or potential com petition between the tw o 

proponents, nor would it affect the structure of 

commercial banking in any relevant area. The 

Board of Directors, therefore, 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 o f trade.

Financial and Managerial Resources; Future

Prospects. Both banks have satisfactory financial 

and managerial resources and the proposed merger 

should have no adverse effect on these resources. 

The future prospects appear favorable.

Convenience and Needs o f the Community to

be Served. Consummation of the proposed merger 

would result in higher lending lim its being made 

available to customers o f both banks. In addition, 

trust and international banking services w ill become available to customers of Commercial.

Based on the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

R esources

(in

th o u san d s

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Princeton Bank and

Trust Company

Princeton, New Jersey

149,086 8 12

to purchase the assets and

assume the deposit

liabilities of

Mid-Jersey National

Bank

Woodbridge Township 

(P.O. Fords)

32,309 4

Summary report by A ttorney General, 

November 10, 1977

The main offices of Bank and Applicant are 

approximately 26 miles apart, no branches of the 

two institutions are w ithin 20 miles of each other, 

and all of American's offices are more than 25 

miles from any office of Bank. There are numerous offices of other commercial banks in the 

areas between the offices of Bank and Horizon 

Bancorp's tw o subsidiaries. The application indicates that there is very little deposit and loan overlap between A pplicant and Bank, and it is probable that there is even less deposit and loan overlap 

between Bank and American in view of the greater 

distance between them. It therefore appears that 

Bank and Horizon Bancorp's two subsidiary banks 

do not compete to any significant degree in each 

other's service area.

Under New Jersey law, which permits statewide 

branching subject to certain home office protectio n s n o t applicable here, Horizon Bancorp, 

through either of its subsidiary banks, could enter 

Bank's service area de novo. As of December 31, 

1976, A pplicant controlled 8.6 percent of total 

bank deposits in Mercer County and was one of

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 107

the larger banks operating in the northern and 

eastern portions of the county. In addition, Am erican, Horizon Bancorp's other subsidiary bank, 

held total deposits of $372.5 m illion, and was the 

largest commercial bank operating in Morris County, w ith approximately 14 percent of total bank 

deposits in that county as of December 31, 1976. 

Therefore, Horizon Bancorp, which owns tw o 

banks of substantial size located near Bank's primary service area, appears to be a potential entrant 

into Bank's service area. However, in view of 

Bank's relatively small size (it controls less than 2 

percent of the total deposits held by the 24 commercial banks operating in Middlesex County), and 

the existence of a large number of banking organizations of substantial size which could enter 

Middlesex County, it appears that the proposed 

acquisition w ill have only slightly adverse effects 

on potential com petition.

In sum, it appears that the proposed acquisition 

will have no significant effect on existing competitio n and only slightly adverse effects on potential 

com petition.

Basis for Corporation approval,

December 16, 1977

Princeton Bank and Trust Company, Princeton, 

New Jersey ("P rinceton"), a State nonmember insured bank w ith total resources of $149,086,000 

and total IPC deposits of $121,042,000, 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 Mid-Jersey National Bank, Woodbridge 

T o w n s h ip (P .O . Fords), New Jersey ("M idJersey"), w ith total resources of $32,309,000 and 

total IPC deposits of $27,164,000. Incident to the 

transaction, the 4 existing offices of Mid-Jersey 

would become branches of Princeton, increasing 

the number of its offices to 12.

Competition. Princeton, a w holly owned subsidiary of Horizon Bancorp, Morristown, New Jersey, operates eight offices, all located in Mercer 

County in central New Jersey. An application to 

establish another branch in Mercer County is currently pending. Horizon Bancorp's one other bank 

subsidiary is American National Bank and Trust of 

New Jersey, Montclair, New Jersey ("A m erican"), 

w ith total resources of $481,109,000 and total 

IPC deposits of $359,357,000.

Mid-Jersey operates fou r offices in Woodbridge 

Township, Middlesex County, in northeastern New 

Jersey. Woodbridge Township is a part of the New 

York, New York-Northeastern New Jersey Standard Consolidated Area and is w ithin easy commuting distance of New York City.

The proposed transaction would have its most 

direct and immediate effects in Woodbridge Tow nship and those communities in Union and Middlesex Counties which are contiguous to Woodbridge

Township and located north of the Raritan River 

and south of the Rahway River. The population of 

this local market was 291,973 in 1970, representing a 12.4 percent increase since 1960. In this 

market, 14 banks maintain 51 offices holding 

aggregate IPC deposits of $442,370,000. MidJersey holds 5.2 percent of these IPC deposits, the 

ninth largest share, while Princeton and its a ffiliate, American, are not represented.* The ninth 

largest bank in the State holds 22.4 percent of IPC 

deposits in the market and four banks hold 51.8 

percent of such deposits. Following the proposed 

transaction, Princeton would acquire Mid-Jersey's 

minor share of the market.

New Jersey law provides fo r statewide branching except in communities having fewer than 

10,000 residents and containing the main office of 

another bank. It is considered likely that either 

Princeton or American would enter the relevant 

market through de novo branching. Mid-Jersey is 

not considering further expansion through de novo

branching because of the costs involved in relation 

to its size. While some potential com petition 

would be eliminated by the proposal, it should be 

noted that the resulting bank w ill hold a small 

share of a market in which com petition is intense 

w ith numerous alternatives for banking services 

available.

For these reasons, it appears that the approval 

of the transaction would not eliminate significant 

existing or potential com petition between the 

proponents, nor would it affect the structure of 

commercial banking in any relevant area. The 

Board of Directors, therefore, has concluded that 

the proposed transaction w ould not, in any section 

o f th e c o u n tr y , s u b s ta n tia lly lessen c o m p e titio n , 

tend to create a monopoly, or in any other manner 

be in restraint of trade.

Financial and Managerial Resources; Future

Prospects. Both banks have acceptable financial 

and managerial resources and the proposed transaction should have no adverse effect on these 

resources. Future prospects appear favorable.

Convenience and Needs o f the Community to

be Served. Following consummation of the proposed transaction, Princeton w ill offer trust services not presently offered by Mid-Jersey to its 

custom ers. A dditionally, services provided by 

Horizon Bancorp and its non-bank subsidiaries will 

be made available.

Based on the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

*The nearest offices o f Princeton and Am erican are, 

respectively, approxim ately 25 miles and 15 miles distant from the nearest offices o f Mid-Jersey w ith numerous banking offices intervening.

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

Resources

(in

th o u san d s

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

The Sanwa Bank of

California

San Francisco, 

California

(change title to Golden 

State Sanwa Bank)

250,349 8 19

to merge with

Golden State Bank

Downey

132,036 11

Summary report by A ttorney General, 

August 15, 1977

We have reviewed this proposed transaction and 

conclude that it would not have a substantial competitive impact.

Basis for Corporation approval,

December 27, 1977

The Sanwa Bank of California, San Francisco, 

California ("Sanwa Bank"), an insured State nonm e m b e r b a n k w it h to ta l re source s of 

$ 2 5 0 ,3 4 9 ,0 0 0 and to ta l IPC deposits of 

$173,002,000, has applied, pursuant to Section 

18(c) and other provisions of the Federal Deposit 

Insurance Act, for the FDIC's consent to merge 

w ith Golden State Bank, Downey, California 

("Golden S tate"), an insured State nonmember 

bank w ith total resources of $132,036,000 and 

total IPC deposits of $100,213,000. The transaction would be consummated under the charter 

of Sanwa Bank and w ith the title "Golden State 

Sanwa Bank." The 11 offices of Golden State 

would be operated as branches of Sanwa Bank, 

increasing the number of its offices to 19.

Competition. Sanwa Bank operates a total of 

eight offices. Its main office is in San Francisco. In 

addition, it has offices in Los Angeles County, San 

Jose, Oakland, and Sacramento. Except fo r directors' qualifying shares, Sanwa Bank is a w holly 

owned subsidiary of The Sanwa Bank, Ltd., Osaka, 

Japan.

Golden State operates 11 offices. Nine of these 

offices are located in Los Angeles County and the 

remaining two are in the northern portion of 

adjacent Orange County.

The proposed merger would have its most direct and immediate impact in Los Angeles County. 

Sanwa Bank has one office in downtown Los 

Angeles and three other offices to the west and 

southwest of the downtown area. Golden State 

operates nine offices to the east and southeast of 

downtown Los Angeles. The population of Los 

Angeles County was 7,036,881 in 1970, having 

increased 16.5 percent between 1960 and 1970. 

The metropolitan area has a widely diversified

economy w ith notable concentrations in the electronics, aerospace, petroleum, and entertainment 

industries and a rapidly growing volume of foreign 

trade. Area growth is continuing, although at a 

slower pace than in the 1960s.

A total of 83 commercial banks, including the 

State's 10 largest, operate 1,125 offices in Los 

Angeles County. Golden State represents the 17th 

largest commercial bank w ith 0.4 percent of the 

IPC deposits held by offices operating in the county. Sanwa represents the 22nd largest institution 

w ith a 0.2 percent market share. Holding a 0.6 percent market share, the resultant bank would represent the market's 15th largest commercial bank. 

Los Angeles County is dominated by the State's 

largest banks and the tw o largest together control 

over 54 percent of the market's commercial bank 

IPC deposits. While some existing com petition 

would be eliminated as a result of the proposed 

merger, this effect would not be significant.

Under California law, commercial banks may 

branch de novo statewide. Sanwa could be expected both to expand in Los Angeles County and 

enter Orange County de novo should this proposal 

be denied. Golden State also is a viable com petitor 

and could be expected to expand in the future. 

Therefore, there is some potential fo r the development of increased com petition between the proponents. In view of their relative sizes, however, 

and the large number of potential competitors 

which w ould re m a in if this m e rg e r is c o n s u m ­

mated, the elimination of potential com petition 

which would result from the proposal is not significant.

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. Both banks have satisfactory financial 

and managerial resources, as would the resultant 

bank. The future prospects fo r the resultant bank 

are favorable.

Convenience and Needs o f the Community to

be Served. Consummation of this proposed transaction would have no perceptible effect in the 

trade area now being served by either bank due to 

the substantial number of banking alternatives 

available. The resultant bank plans to continue the 

services presently offered by Golden State and to 

add international banking services.

Based on the foregoing, the Board of Directors 

has concluded that approval of the application is 

warranted.

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 109

Effective January 1, 1977, Florida banking statutes were changed to allow county-wide branching. As a result, the Corporation approved the 

following 22 merger applications involving a ffiliates of the same holding company in Florida, 

which, although they did not involve a "phantom 

bank," were essentially corporate reorganizations 

having no effect on com petition. In each instance, 

the A ttorney General's report stated that the proposed transaction would have no effect on competition. The Corporation's basis for approval in each 

case stated that all factors required to be considered pertinent to the application were favorably 

resolved.

Barnett Bank o f Pensacola, Pensacola, Florida; 

offices: 2; resources: 79,047 ($000); to merge 

w ith Barnett Bank o f North Pensacola, Escambia 

County (P.O. Pensacola); offices: 1; resources: 

8,463 ($000). Approved: August 8.

Citizens Bank o f Palm Beach County, West 

Palm Beach, Florida; offices: 1; resources: 32,943 

($000); to merge w ith First Forest H ill Bank of

Palm Beach County, Palm Beach; offices: 1; resources: 6,662 ($000). Approved: August 8.

B arnett Bank o f Daytona Beach, Daytona 

B each, Florida; offices: 1; resources: 18,923 

($000); to merge w ith Barnett Bank at Ormond

Beach, Ormond Beach; offices: 1; resources: 

25,269 ($000). Approved: August 22.

Barnett Bank o f Tallahassee, Tallahassee, Florida; offices: 2; resources: 76,853 ($000); to merge 

w ith Barnett Bank o f Tallahassee North, Tallahassee; offices: 1; resources: 13,216 ($000). A pproved: August 22.

First Bank and Trust, Boynton Beach, Florida 

(change title to First Bank and Trust, Palm Beach 

County); offices: 2; resources: 87,279 ($000); to 

merge w ith First Bank, Delray Beach, Florida, Delray Beach; offices: 2; resources: 11,824 ($000); 

and First Bank West, Palm Beach County (P.O. 

Lake W orth); offices: 1; resources: 8,698 ($000). 

Approved: September 9.

Atlantic Bank o f Conway, Orlando, Florida 

(change title to Atlantic Bank o f Orlando); offices: 

1; resources: 8,179 ($000); to merge w ith Atlantic

National Bank o f Winter Park, W inter Park; o ffices: 1; resources: 20,363 ($000); and Atlantic

Bank of Orlando, Orlando; offices: 1; resources: 

24,510 ($000); and Atlantic Bank o f West Orlando, Orlando; offices: 1; resources: 11,972 ($000). 

Approved: September 20.

First Citrus Bank of Indian River County, Vero 

B each, Florida; offices: 1; resources: 59,624 

($000); to merge w ith First Westside Bank o f Vero

Beach, Vero Beach; offices: 1; resources: 8,596 

($000). Approved: September 30.

Sun Bank o f St. Lucie County, Fort Pierce, 

Florida; offices: 3; resources: 74,223 ($000); to 

merge w ith Sun Bank o f Fort Pierce, Fort Pierce;

offices: 1; resources: 13,473 ($000). Approved: 

October 25.

Sun Bank o f Miami, Miami, Florida; offices: 2; 

resources: 36,561 ($000); to merge w ith Sun Bank

o f West Dade, Dade County (P.O. Miam i); offices: 

1; resources: 9,821 ($000); and Sun Bank of

Riverside, Miami; offices: 2; resources: 77,960 

($000); and Sun Bank o f Coral Gables, Coral 

Gables; offices: 1; resources: 24,348 ($000); and 

Sun Bank of Midtown, Miami; offices: 2; resources: 25,850 ($000); and Sun Bank o f Bal

Harbour, National Association, Bal Harbour; offices: 1; resources: 70,591 ($000). Approved: 

October 25.

Barnett Bank o f Plantation, Plantation, Florida 

(change title to Barnett Bank o f Broward County); 

offices: 2; resources: 42,382 ($000); to merge 

w ith Barnett Bank o f Fort Lauderdale, Fort 

Lauderdale; offices: 2; resources: 37,198 ($000); 

and Barnett Bank of Port Everglades, Fort Lauderdale; offices: 1; resources: 6,445 ($000); and Barnett Bank o f Riverland, Fort Lauderdale; offices: 

1; resources: 12,275 ($000); and Barnett Bank of

Jacaranda, Broward County (P.O. Plantation): offices: 1; resources: 19,028 ($000); and Barnett

Bank o f West Hollywood; H ollyw ood; offices: 1; 

resources: 15,277 ($000); and Barnett Bank of

H oilyw ood, Hollyw ood; offices: 3; resources: 

105,119 ($000). Approved: October 25.

Florida Coast Bank o f Pompano Beach, Pompano Beach, Florida; offices: 1; resources: 82,765 

($000); to merge w ith Florida Coast Bank of

Lighthouse Point, Lighthouse Point; offices: 2; resources: 43,133 ($000); and Florida Coast Bank of

Oceanside, Pompano Beach; offices: 1; resources: 

27,217 ($000). Approved: October 25.

Sun Bank and Trust Company o f St. Petersburg, St. Petersburg, Florida; offices: 1; resources: 

59,656 ($000); to merge w ith Sun Coast Bank of

St. Petersburg, St. Petersburg; offices: 2; resources: 13,648 ($000). Approved: October 25.

ComBank/Casselberry, Casselberry, Florida 

(change title to ComBank/Seminole County)', o ffices: 1; resources: 35,329 ($000); to merge w ith 

ComBank/Longwood, Longwood; offices: 1; resources: 9,313 ($000). Approved: November 14.

Sun Bank o f Volusia County,Daytona Beach, 

Florida; offices: 2; resources: 56,277 ($000); to 

merge w ith Sun Bank o f Holly Hill, Holly Hill; o ffices: 1; resources: 19,589 ($000); and Sun Bank

of Daytona Beach Shores, Daytona Beach Shores; 

offices: 1; resources: 12,625 ($000). Approved: 

November 14.

Flagship Bank o f Haines City, Haines C ity, Florida (change title to Flagship Bank o f Polk County) ; offices: 1; resources: 27,779 ($000); to merge 

w ith Flagship Bank o f Lake Alfred, Lake Alfred; 

offices: 1; resources: 15,022 ($000); and DavenDigitized for FRASER 

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

port Flagship Bank, Davenport; offices: 1; resources: 4,689 ($000). Approved: November 14.

First Marine Bank & Trust Company o f the

Palm Beaches, Riviera Beach, Florida; offices: 2; 

resources: 88,859 ($000); to merge w ith First

Marine Bank o f Palm Beach Gardens, Palm Beach 

Gardens; offices: 1; resources: 15,190 ($000); and 

First Marine National Bank, Palm Springs; offices: 

1; resources: 25,706 ($000); and First Marine

Bank of Boca Raton, Boca Raton; offices: 1; resources: 11,049 ($000). Approved: November 14.

B a rn e tt Bank at Sebring, Sebring, Florida 

(change title to Barnett Bank o f Highlands County)', offices: 1; resources: 68,366 ($000); to merge 

w ith Barnett Bank of Lake Placid, Highlands 

County (P.O. Lake Placid); offices: 1; resources: 

7,770 ($000). Approved: November 14.

Barnett Bank o f West Palm Beach, West Palm 

Beach, Florida (change title to Barnett Bank of

Palm Beach County); offices: 1; resources: 33,157 

($000); to merge w ith Barnett Bank o f Palm

Springs, Palm Beach County (P.O. Lake W orth); 

offices: 1; resources: 15,018 ($000); and Barnett

Bank of West Lake Worth, National Association,

Palm Beach County (P.O. Lake W orth ); offices: 1; 

resources: 9,817 ($000). Approved: November 14.

Barnett Bank of West Delray Beach, Palm 

Beach C o u n ty (P.O. Delray Beach), Florida 

(change title to Barnett Bank o f Delray Beach);

o ffic e s : 1; resources: 19,668 ($000); to m erge

w ith Barnett Bank of Delray Beach, National Assoc ia tio n , Delray Beach; offices: 2; resources: 

53,349 ($000). Approved: November 30.

Barnett Bank of Anastasia Island, St. Augustine, Florida (change title to Barnett Bank o f St

Johns C ounty)', offices: 1; resources: 9,602 

($000); to merge w ith Barnett Bank o f St. Augustine, National Association, St. Augustine; offices: 

2; resources: 39,562 ($000); Approved: November 30.

Landmark Bank o f Tampa, Tampa, Florida; o ffices: 2; resources: 70,385 ($000); to merge w ith 

Landmark Bank of North Tampa, Hillsborough 

C o u n ty (P.O . Tampa); offices: 1; resources: 

10,242 ($000). Approved: November 30.

Community Bank of Seminole, Seminole, Florida (change title to Community Bank o f Pinellas

County)', offices: 4; resources: 91,444 ($000); to 

merge w ith Community Bank o f St. Petersburg, St. 

Petersburg; offices: 2; resources: 18,434 ($000); 

and Community Bank o f Largo, Largo; offices: 3; 

resources: 24,679 ($000); and Community Bank

o f Northside, St. Petersburg; offices: 2; resources: 

15,263 ($000); and Community Bank o f Clearwater, Clearwater; offices: 2; resources: 17,554 

($000); and Community Bank o f Countryside,

Clearwater; offices: 2; resources: 8,597 ($000); 

and Community Bank of Redington, Redington 

Shores; offices: 1; resources: 8,851 ($000). A pp ro v e d : D e ce m b e r 16.

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 111

The Corporation approved the follow ing 27 

applications involving corporate reorganizations, 

including 22 in connection w ith the acquisitions of 

banks by holding companies, which had no competitive effect. In each instance, the A ttorney 

General's report stated that the proposed transaction would have no effect on com petition. The 

Corporation's basis for approval in each case stated 

that the proposed transaction would not, per se, 

change the competitive structure of banking, nor 

affect the banking services that the (operating) 

bank has provided in the past, and that all other 

factors required to be considered pertinent to the 

application were favorably resolved.

First Security Bank o f Grand Blanc, Grand 

Blanc, Michigan; offices: 2; resources: 16,939 

($000); to consolidate w ith GBB Bank, Grand 

Blanc, in organization; offices: 0; resources: 120 

($000). Approved: February 15.

Mountain View Bank, American Fork, Utah; o ffices: 1; resources: 5,461 ($000); to merge w ith 

New Mountain View Bank, American Fork, in 

organization; offices: 0; resources: 0. Approved: 

March 1.

State Bank of Lehi, Lehi, Utah; offices: 1; resources: 13,963 ($000); to merge w ith New State

Bank o f Lehi, Lehi, in organization; offices: 0; resources: 0. Approved: March 1.

Bank o f Pleasant Grove, Pleasant Grove, Utah; 

offices: 1; resources: 20,373 ($000); to merge 

w ith New Bank o f Pleasant Grove, Pleasant Grove, 

in organization; offices: 0; resources: 0. Approved: 

March 1.

Nacogdoches Road Bank, San A ntonio, Texas, 

in organization; offices: 0; resources: 200 ($000); 

to merge w ith and change title to Northern Hills

Bank o f San Antonio, San A ntonio; offices: 1; resources: 8,108 ($000). Approved: March 4.

Hanover Bank & Trust Company, Hanover, 

New Hampshire; offices: 1; resources: 9,061 

($000); to merge w ith First United Bank, Hanover, 

in organization; offices: 0; resources: 0. Approved: 

March 14.

Depositors Trust Company, Augusta, Maine; offices: 58; resources: 235,385 ($000); to acquire 

the assets and assume the liabilities of Depositors

C o rp o ra tio n , Augusta; offices: 0; resources: 

31,416 ($000). Approved: A pril 19.

Old Stone Bank, Providence, Rhode Island; o ffices: 34; resources: 955,263 ($000); to acquire 

the assets and assume the liabilities of Old Stone

Mortgage and Realty Trust, Providence; offices: 1; 

resources: 29,484 ($000). Approved: A pril 19.

East Dallas Bank, Dallas, Texas; offices: 1; resources: 29,960 ($000); to merge w ith New East

Dallas Bank, Dallas, in organization; offices: 0; resources: 200 ($000). Approved: A pril 25.

West Main State Bank, Baytown, Texas, in organization; offices: 0; resources: 100 ($000); to

merge w ith and change title to Peoples State Bank,

Baytown; offices: 1; resources: 34,778 ($000). 

Approved: May 17.

Mid Michigan Bank, Gladwin, Michigan; offices: 

4; resources: 42,999 ($000); to consolidate w ith 

State Bank of Harrison and Gladwin, Gladwin, in 

organization; offices: 0; resources: 120 ($000). 

Approved: May 31.

Catder Avenue State Bank, Beaumont, Texas, in 

organization; offices: 0; resources: 200 ($000); to 

merge w ith and change title to Beaumont State

Bank, Beaumont; offices: 2; resources: 53,847 

($000). Approved: May 31.

Hawkeye Bank and Trust, Burlington, Iowa; 

offices: 6; resources: 67,292 ($000); to merge 

w ith Burlington Bank Realty Company, Burlington; offices: 0; resources: 624 ($000). Approved: 

June 27.

Houston County Bank, Ashford, Alabama, in 

organization; offices: 0; resources: 100 ($000); to 

merge w ith The Farmers & Merchants Bank, Ashford (change title to The Farmers & Merchants

Bank o f Ashford); offices: 2; resources: 9,965 

($000). Approved: August 11.

Denver Savings Bank, Denver, Iowa; offices: 1; 

resources: 9,144 ($000); to merge w ith Denver

Realty Company, Inc., Denver; offices: 0; resources: 70 ($000). Approved: August 22.

Peoples Bank & Trust Company, W ilmington, 

Delaware; offices: 5; resources: 23,816 ($000); to 

merge w ith Peoples Corporation, W ilmington, in 

organization; offices: 0; resources: 0.1 ($000). 

Approved: September 12.

Carroll Bank, Hillsville, Virginia, in organization; offices: 0; resources: 0; to merge w ith and 

change title to Bank o f Carroll, Hillsville; offices: 1; 

resources: 7,641 ($000). Approved: September 19.

Josey State Bank, Carrollton, Texas, in organization; offices: 0; resources: 75 ($000); to merge 

w ith and change title to First Bank & Trust, Carrollton; offices: 1; resources: 16,371 ($000). A pproved: October 12.

Second American State Bank, Lubbock, Texas, 

in organization; offices: 0; resources: 200 ($000); 

to merge w ith and change title to American State

Bank, Lubbock; offices: 1; resources: 175,693 

($000). Approved: October 19.

Bank of Gassaway, Gassaway, West Virginia; 

offices: 1; resources: 25,893 ($000); to merge 

w ith Community Investment Company, Inc., Gassaway; offices: 0; resources: 1,219 ($000). A pproved: November 14.

The Village Bank of Aurora, Aurora, Ohio; offices: 2; resources: 10,379 ($000); to merge w ith 

A-V Bank Company, Aurora, in organization; o ffices: 0; resources: 502 ($000). Approved: November 21.

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

Allied Addicks Bank, Addicks, Texas, in organization; offices: 0; resources: 50 ($000); to merge 

w ith Addicks Bank, Addicks; offices: 1; resources: 

12,553 ($000). Approved: November 22.

Allied HiHcroft Bank, Houston, Texas, in organization; offices: 0; resources: 200 ($000); to merge 

w ith HiHcroft Bank, Houston; offices: 1; resources: 14,213 ($000). Approved: November 22.

Allied Gulf Coast Bank, Winnie, Texas, in organization; offices: 0; resources: 50 ($000); to 

merge w ith Gulf Coast State Bank, Winnie; offices: 

1; resources; 23,082 ($000). Approved: November 22.

United California Bank, Los Angeles, C alifornia; offices: 279; resources: 8,415,967 ($000); to 

merge w ith Westac, Inc., Los Angeles, in organization; offices: 0; resources: 7 ($000). Approved: 

December 15.

Walker Bank and Trust Company, Salt Lake 

C ity, Utah; offices: 28; resources: 558,038 ($000); 

to merge w ith Waltac, Inc., Salt Lake City, in organization; offices: 0; resources: 1 ($000). A pproved: December 15.

Meyer land Bank o f Commerce, Houston, Texas, 

in organization; offices: 0; resources: 200 ($000); 

to merge w ith and change title to Meyer/and Bank,

Houston; offices: 1; resources: 31,617 ($000). 

Approved: December 20.

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Federal Reserve Bank of St. Louis
113

BANK ABSORPTIONS DENIED BY THE CORPORATION

Resources

(in

th o u san d s

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Alpena Savings Bank 84,216 8 10

Alpena, Michigan

to consolidate with

Hillman State Bank 6,047 2

Hillman

Summary report by A ttorney General, 

December 30, 1976

We have reviewed this proposed transaction and 

conclude that it would not have a substantial competitive impact.

Basis for Corporation denial, May 23, 1977

Alpena Savings Bank, Alpena, Michigan, a State 

nonmember insured bank w ith total resources of 

$ 8 4 ,2 1 6 ,0 0 0 and to ta l IPC d e p o s its o f 

$68,029,000, has applied, pursuant to Section 

18(c) and other provisions of the Federal Deposit 

Insurance Act, for the Corporation's prior consent 

to consolidate under its charter and title w ith 

Hillman State Bank, Hillman, Michigan, a State 

nonmember insured bank w ith total resources of 

$6,047,000 and total IPC deposits of $5,177,000, 

and to establish the tw o offices o f the latter as 

branches of the resultant bank.

Competition. Alpena Savings Bank operates six 

offices in Alpena County, w ith its main office and 

four branches in the city of Alpena and its suburbs 

and one branch located in Hubbard Lake, approximately 13 miles southwest of Alpena. In addition, 

it operates a branch in Harrisville, 31 road-miles 

southeast of Alpena, and in Lincoln, 27 road-miles 

south of Alpena, both of which are located in 

Alcona County. Alpena Savings Bank is the 63rd 

largest of Michigan's commercial banks, w ith 0.22 

percent of their total deposits.

Hillman State Bank has its main office in the 

village of Hillman, which is located in the extreme 

eastern portion of Montmorency County, and it 

operates a branch in the unincorporated village of 

Lachine in Green Township, Alpena County. 

These offices are located, respectively, 24 roadmiles and 15 road-miles west o f Alpena.

The proponents are located in a sparsely populated portion of Michigan's Lower Peninsula. The 

economy of the area is prim arily based upon agriculture, although the city of Alpena has developed 

a diversified industrial base. Alpena is the commercial and financial center fo r much of the area. 

W ith a 1970 population of 13,805, it was the only 

com m unity w ithin a 100-mile radius w ith a population exceeding 6,350.

The prim ary trade area of Alpena Savings Bank 

is represented by that area w ithin a 25-mile radius 

of Alpena and comprises Alpena County and adjacent eastern Presque Isle, northeastern Alcona and 

eastern Montmorency Counties. This area is essentially coextensive w ith Alpena Savings Bank's legal 

branching area. The population of this area is estimated to have been 39,100 in 1970, representing a

7.3 percent increase from 1960. Three commercial 

banks operate w ithin this area. Their 17 area offices held, at June 30, 1976, a total of $120 m illio n IPC deposits. Alpena Savings Bank represented the area's largest bank, w ith 51.8 percent 

of the commercial bank IPC deposits, and Hillman 

State Bank represented the smallest bank, w ith 4.4 

percent of such deposits. The remaining 43.8 percent of the deposits was held by Peoples Bank and 

Trust of Alpena.

Hillman State Bank has a primary trade area 

which consists of the villages of Hillman and Lachine and that area lying w ithin a distance of 

approximately 18 road-miles of either of the two. 

This would include the Alpena metropolitan area 

to the east and the villages of Posen to the north 

and Atlanta to the southwest. The economy of the 

market, w ith the exception of the city of Alpena, 

is prim arily agricultural and Alpena provides employm ent for a significant number of the market's 

rural residents. Four commercial banks operate in 

this market. The 14 area offices of these banks 

held, at June 30, 1976, $104 m illion IPC deposits. 

Controlling 45.1 percent and 5.0 percent of these 

deposits, respectively, Alpena Savings Bank and 

Hillman State Bank had the market's second and 

third largest shares. Peoples Bank and Trust of 

Alpena had the market's largest share w ith 47.8 

percent of the deposits. Lewiston State Bank's 

Atlanta office held the remaining 2.1 percent of 

the market's deposits. The proponents are in direct 

com petition in this market area and the resultant 

bank would have 50.1 percent of the IPC deposits, 

representing the largest share. Moreover, after the 

proposed transaction, tw o banks would control

97.9 percent of the market's commercial bank IPC 

deposits.

The primary trade area of Hillman State Bank is 

substantially overlapped by that of Alpena Savings 

Bank. Upon consummation of the proposed transaction, Alpena Savings Bank would acquire an 

enlarged primary trade area. W ithin this market, 

Alpena Savings Bank w ould emerge as the largest 

commercial bank w ith 55.2 percent of the IPC 

deposits. As a result of the elim ination of Hillman 

State Bank, Peoples Bank and Trust Company 

would remain as the only significant com petitor. 

Lewiston State Bank, at its Atlanta office located 

40 road-miles west o f Alpena, would hold merely

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

1.8 percent of this enlarged market's commercial 

bank IPC deposits.

There appears to be no significant potential for 

com petition to increase between the proponents 

through their future de novo branching. Hillman 

State Bank does not have financial or managerial 

re source s to facilitate such expansion, while 

Alpena Savings Bank would be unlikely to find the 

Hillman-Lachine area attractive fo r de novo expansion due to the area's sparse population and lack 

of prospects fo r significant economic expansion, in 

the foreseeable future. Increased com petition between the proponents could occur, however, if 

Hillman State Bank were acquired by either a bank 

other than Alpena Savings Bank or a holding 

company. Such an acquisition may result in the 

eventual erosion of the current market domination 

by Alpena Savings Bank and Peoples Bank and 

Trust of Alpena and, from a com petitive standpoint, would be preferable to the proposed consolidation.

The proposed consolidation, if consummated, 

would: (1) eliminate significant existing competitio n between Alpena Savings Bank and Hillman 

State Bank, (2) increase substantially the deposit 

concentration in the relevant markets, and (3) reduce from four to three the number of banking 

sources available to residents of the market area. 

On the basis of the foregoing, and in consideration 

of the standards established by the Supreme Court 

in cases involving horizontal mergers o f banks 

which compete in the same local market, the 

Board of Directors is of the opinion that the proposed transaction would "substantially lessen comp e titio n " w ithin the relevant area.

Financial and Managerial Resources; Future

Prospects. The financial and managerial resources 

of Alpena Savings Bank are satisfactory. Hillman 

State Bank has recently experienced significant 

deterioration in the quality o f its assets. Furthermore, the bank has a problem w ith top management, w ith its president serving only on a tem porary basis. This problem is not insurmountable, 

however, and may be solved by means other than 

the proposal. Future prospects of the resultant 

bank would be favorable.

Convenience and Needs o f the Community to

be Served. An increased lending lim it would be 

available as a result of the proposal and would be 

of convenience to a few of the borrowers in the 

local market of Hillman State Bank. In addition, 

an interest rate of 5 percent on Hillman State 

Bank's 90-day passbook accounts would be increased to 5.5 percent and the 10-percent rate 

charged on residential mortgage loans would be 

decreased to 9 percent or 9.25 percent. These 

added conveniences, however, do not, in the 

opinion of the Board, outweigh the adverse competitive effects of the proposed transaction.

The Board of Directors, accordingly, believes 

that the application should be, and it hereby is, 

denied.

Statement upon reconsideration, July 28, 1977

Alpena Savings Bank, Alpena, Michigan, a State 

nonmember insured bank w ith total resources of 

$ 8 4 ,2 1 6 ,0 0 0 and to ta l IPC d e p o s its o f 

$68,029,000, was denied, on May 23, 1977, the 

FDIC's prior approval to consolidate w ith Hillman 

S ta te Bank, Hillman, Michigan, a State nonmember insured bank w ith total resources of 

$6,047,000 and total IPC deposits of $5,177,000. 

Alpena Savings Bank and Hillman State Bank subsequently petitioned the FDIC to reconsider its 

denial. The FDIC's Board of Directors, having 

reconsidered its earlier decision, affirm s its denial 

w ith the follow ing additional statement.

The Board of Directors concluded in its original 

decision that the proposed transaction would, if 

consummated: (1) eliminate significant existing 

com petition between Alpena Savings Bank and 

Hillman State Bank, (2) increase substantially the 

deposit concentration in the relevant market, and 

(3) reduce from four to three the number of banking sources available to the residents of the market 

area. Based on these conclusions and on the standards established by the Supreme Court in cases 

involving horizontal mergers of banks already competing in the same local market, the Board of 

Directors was of the opinion that the proposed 

transaction would "substantially lessen competitio n " w ithin the relevant local banking market.

In seeking reconsideration of the FDIC's previous denial, the proponents present no new facts 

which cast doubt upon the initial determination 

that the proposed transaction would result in subs ta n tia lly anticompetitive effects. Indeed, the 

proponents do not question this conclusion. Instead, they argue that such adverse com petitive 

consequences are outweighed by the convenience 

and needs of the market served.

The standards applied by the FDIC in passing 

upon consolidation applications are set forth in 

the Bank Merger A ct o f 1966 (12 U.S.C. Section 

1828(c)) which provides that the FDIC shall not 

approve a consolidation transaction:

whose effect in any section of the country 

m ay 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.

Accordingly, where substantial anticompetitive 

effects may result from a proposed consolidation, 

the FDIC is obligated under the act to balance 

such anticom petitive effects w ith the benefits 

which are likely to arise out of the consolidation

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and to approve the transaction only where such 

benefits "cle a rly" outweigh the foreseen anticompetitive effects.

In support of their application, the proponents 

present four arguments as to why the proposed 

transaction would benefit the convenience and 

needs of the com m unity. First, the proponents 

argue that new capital is necessary to improve H illman State Bank's deteriorated asset condition and 

such capital is not available from the populace of 

the com m unity of Hillman. Second, the proponents contend Hillman State Bank cannot compete 

w ith the larger banks in Alpena and as a result, 

the bank is losing customers. If the proposed transaction is consummated, services such as trust services, computer services, credit card services, daily 

interest on savings accounts, and larger lending 

limits would be available to the customers o f H illman State Bank. Third, the proponents contend 

that no less anticom petitive alternatives are available. The only tw o banks, outside those located in 

Alpena, which, under Michigan law, could consolidate w ith Hillman State Bank do not have adequate resources to effect such a consolidation. 

Also, according to the proponents, Alpena is an 

attractive city fo r holding company entry and the 

Alpena banks are often approached by holding 

companies as prospective purchasers. For this reason, no holding company would acquire the H illman State Bank. To do so, the proponents argue, 

would foreclose the acquiring holding company 

from subsequently acquiring either of the Alpena 

banks due to the resulting anticompetitive effect. 

Also, as a result of Michigan banking law, if a holding company acquired Hillman State Bank it 

w ould be prevented from branching into the 

Alpena area, which is the economic center of the 

relevant market area. Lastly, the proponents argue 

that Hillman State Bank faces serious management 

succession problems.

The Bank Merger A ct permits application of the 

convenience and needs defense where merger is 

necessary either to avoid the risk o f bank failure, 

to solve management problems, or to provide 

essential services not previously offered by banks 

in the com m unity. A t the same time, none of 

these benefits can justify a merger when a less anticompetitive solution is available (United States v. 

Third National Bank in Nashville, 390 U.S. 171, 

189 (1968)). The convenience and needs defense 

also does not justify an anticompetitive merger 

where the benefit is simply to create a larger bank 

to serve the needs of larger customers (United

States v. Phillipsburg National Bank, 399 U.S. 350, 

369-72 (1970)).

While Hillman State Bank has experienced a 

deterioration in the quality of its assets, it is not 

likely the bank w ill fail absent the proposed consolidation. Also, the proponents have stated that 

when the citizens of Hillman "go to to w n " they go 

to Alpena. So, any new services that would be

provided by the consolidation are already conveniently available to the residents of Hillman. 

Hillman State Bank does have a management succession problem. The bank admits, however, it did 

not try to find a new executive officer, although it 

does state that it now has started seeking appli 

cants for the position in case the proposed transaction is not allowed. Finally, Hillman State Bank 

admits that it only sought a consolidation w ith the 

Alpena banks and that it never approached any 

other potential purchasers.

In the light of the foregoing, the FDIC adheres 

to its original conclusion and finds nothing in the 

record to warrant a conclusion that the proposed 

transaction would result in the realization of significant public benefit. Therefore, the FDIC's 

Board of Directors again concludes that approval 

of the proposed consolidation of Hillman State 

Bank w ith Alpena Savings Bank is not warranted 

and should be denied.

Resources

(in

th o u san d s

o f d o llars)

B a n k in g

o ffic e s in

o p e ra tio n

B e fo re A fte r

Essex County Bank and

Trust Company

Lynn, Massachusetts

170,707 15 17

to acquire the assets and

assume the liabilities o f

The Marblehead Bank

and Trust Company

Marblehead

10,180 2

Summary report by A ttorney General,

May 17, 1977

Both parties maintain offices in Swampscott. 

As of February 10, 1977, Applicant drew $15.6 

m illion or 9.2 percent of its total deposits and 

$7.4 m illion or 6 percent of its total loans from 

Swampscott. During the same period, Bank drew 

$900,000 or 11 percent of its total deposits and 

$318,900 or 4.1 percent of its total loans from 

Swampscott. As of February 10, 1977, Applicant 

also drew $24.9 m illion or 17.3 percent of its total 

deposits and $18.8 m illion or 16.8 percent o f the 

total loans from Bank's service area. For the same 

period, Bank drew $1.7 m illion or 20.5 percent of 

the total deposits and $4.6 m illion or 20 percent 

of total loans from communities where Applicant 

maintains offices. Therefore, consummation of the 

proposed merger would eliminate direct competitio n between the participants.

There are 45 commercial and mutual savings 

banks in Essex County operating a total of 144 

branches and 189 offices. As of June 30, 1976,

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116 FEDERAL DEPOSIT INSURANCE CORPORATION

these institutions held total deposits of $3 billion. 

Applicant ranks 6th in terms of total deposits w ith

7 percent of the county market and Bank ranks 

41st in terms of total deposits w ith .002 percent 

of the market. Consummation of the proposed 

merger would result in a negligible increase in 

Applicant's market share in Essex County, and 

slightly increase concentration. As of June 30, 

1976, there were 14 commercial banks operating 

in the 10-community service area of A pplicant and 

Bank. In this market, A pplicant ranked first w ith

32.3 percent of the total commercial bank IPC 

time deposits and Bank ranked ninth w ith a 2 percent share. Consummation of the proposed merger 

would increase Applicant's market share to 34.3 

percent, slightly increasing concentration. A dditionally, there are a total of 16 th rift institutions, 

w ith third-party payment powers (NOW accounts), 

operating in the combined relevant service area. In 

terms of total IPC deposit figures for both commercial banks and th rift institutions, A pplicant 

maintains a 7.9 percent market share and Bank has 

a .5 percent market share. Once again, consummation of the proposed merger would increase A p p licant's market share to 8.4 percent, thereby slightly 

increasing concentration.

Massachusetts banking law permits branching 

and de novo entry. Branches may be established in 

the same city as a bank's principal office and in 

other towns in the same county having no or inadequate banking facilities. Given Applicant's size, 

proxim ity to Bank's service area, its historical 

proclivity for de novo entry as its means of expansion into new markets, and its present predisposition to enter Bank's market, it is clearly a likely de

novo entrant into the latter's market. De novo

entry, rather than the proposed merger, would preserve the existence of a small yet viable com petitor 

in the marketplace. There is no evidence that Bank 

is in a position or predisposed to expand into 

Applicant's service area.

Overall, the proposed merger would have some 

adverse com petitive consequences.

Basis for Corporation denial, July 28, 1977

Essex County Bank and Trust Company, Lynn, 

Massachusetts ("Essex Bank"), an insured State 

n o n m e m b e r bank w ith to ta l resources of 

$ 1 7 0 ,7 0 7 ,0 0 0 and to ta l IPC deposits of 

$137,958,000, has applied, pursuant to Section 

18(c) and other provisions of the Federal Deposit 

Insurance Act, for the Corporation's prior consent 

to acquire the assets and assume the liabilities of 

The Marblehead Bank and Trust Company, Marblehead, Massachusetts ("Marblehead Bank"), an 

insured State nonmember bank w ith total assets of 

$1 0 ,1 8 0 ,0 0 0 and to ta l IPC d e p o s its o f 

$8,760,000. Incident to the transaction, the 2 

offices of Marblehead Bank would be established 

as branches of the resultant bank, which would 

commence operations w ith a total of 17 offices.

Competition. Essex Bank has its 15 offices in 

northeastern Massachusetts: its main office and 13 

branches in the city of Lynn and 5 neighboring 

communities in southern Essex County and 1 

branch in the central-eastern portion of the county. Essex County had a population of 637,887 in 

1970, representing a 12.1 percent increase during 

the preceding decade, and a 1975 median household buying level of $14,636 which exceeded the 

statewide median level by 3.5 percent.

Marblehead Bank operates its tw o offices some 

2.5 miles apart in Marblehead, a southern Essex 

County com m unity. Marblehead lies adjacent to 

the com m unity of Swampscott, w ithin which 

Essex Bank maintains tw o branches.

The primary market of Marblehead Bank is the 

area located w ithin approximately 5 miles of the 

bank's main office or branch, thus comprising 

Marblehead, Salem, and Swampscott and adjacent 

portions of Peabody, Danvers, Beverly, and the 

eastern third of the city of Lynn. These com munities, w ith the exception of Lynn, are prim arily 

residential w ith above-average income levels and 

expanding populations. Many of their employed 

residents commute to the Boston area, 10 to 20 

miles to the southwest. Lynn, form erly a prosperous shoe and textile city, has suffered depressed economic conditions for many years. Its 

population declined approximately 4.5 percent 

during the 1960s and its 1975 median household 

buying level of $11,968 was 15.3 percent below 

the comparable statewide level.

Marblehead Bank is 1 of 10 commercial banks 

represented in the relevant market. Marblehead 

Bank has the eighth largest share, 3.0 percent, of 

the IPC deposits held at the 31 area offices of such 

banks. Essex Trust has its main office and seven 

branches w ithin this market and holds 34.8 percent, the largest share, of the area commercial 

bank IPC deposits. Upon consummation of the 

proposed transaction, Essex Trust's market share 

would increase to 37.8 percent. There is significant 

existing com petition between the tw o banks which 

the proposed transaction would eliminate. The 

proponents have offices only 0.8 miles apart and a 

recent analysis of the proponents accounts indicates that Essex Bank draws 73.2 percent of its 

deposits from the seven communities in which

79.7 percent of Marblehead Bank's deposits originate.

Massachusetts law permits countywide de novo

branching by commercial banks. Marblehead Bank 

has financial and managerial problems and would 

be unlikely to consider such expansion. Essex 

Trust also has experienced financial difficulties. 

Essex T ru s t, however, has established three 

branches w ithin the past 5 years. As recently as

1974 Essex Trust evidenced interest in acquiring 

additional representation w ithin the relevant area, 

and when its capital and earnings improve, it may 

be expected to open additional de novo branches

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BANK ABSORPTIONS DENIED BY THE CORPORATION 117

in the market. Thus, there is a potential for increased com petition between the proponents 

through their future de novo branching which the 

proposed transaction would eliminate.

The proposed transaction, if consummated, 

would: (1) eliminate significant existing competitio n between Essex Bank and Marblehead Bank, 

(2) increase substantially the deposit concentration in the relevant market, and (3) eliminate a 

potential for the development of increased competition in the relevant market area. In view of the 

foregoing, and in consideration of the standards 

established by the Supreme Court in cases involving horizontal mergers of banks which compete in the same local market, the Board of Directors is of the opinion that the proposed transaction would "substantially lessen com petition" 

w ithin the relevant area.

Financial and Managerial Resources; Future

Prospects. Although the managerial resources and 

future prospects of Essex Bank appear to be satisfactory, its capital is statistically low and it has a 

history of low net earnings. Increased growth can 

be expected to place additional pressure on Essex 

Bank's capital and the proposed transaction would 

require a cash payout at a time when additional 

capital is needed. Furthermore, Essex Bank has an 

excessive investment in fixed assets. It would be 

unwise, at this time, to permit it to acquire Marblehead Bank, which has significant asset problems.

These financial considerations lead to the conclusion that Essex Bank should expend its efforts 

to strengthen its own financial resources and to 

bolster its earnings performance rather than to 

expand by acquisition. Accordingly, it is the view 

of the Board of Directors that financial considerations lend weight toward denial of the application.

Convenience and Needs o f the Community to

be Served. No change in the services presently 

available at numerous commercial bank offices in 

the relevant market would result from consummation of the proposed transaction.

In the light of the foregoing, the Board of 

Directors has concluded that the application by 

Essex Bank fo r consent to its acquisition of 

Marblehead Bank should be denied.

Resources

(in

th o u san d s

Bank ing

o ffic e s in

o p e ra tio n

o f d o lla rs ) B e fo re A fte r

The Peoples Bank and

Trust Company

Tupelo, Mississippi

149,867 18 19

to merge with

Baldwyn State Bank

Baldwyn

5,451 1

Summary report by A ttorney General,

March 31, 1977

Lee County, in which Applicant maintains its 

main office and 10 o f its branch offices, is located 

in northeastern Mississippi. Its population increased from 40,600 in 1960 to 46,100 in 1970, 

an increase of approxim ately 13 percent; the 

population of Tupelo, the county seat and only 

city in Lee County, increased from 17,200 to 

20,500 in the same period, an increase of approximately 18 percent. The population of Prentiss 

County, which abuts Lee County to the north 

grew from 18,000 to 20,000 during that period, an 

increase of 11 percent. The economy o f the area is 

prim arily agricultural. According to the application industrial output has been increasing, and the 

economic prospects fo r the area are bright.

Bank is one of tw o banks located in Baldwyn 

(population approximately 2,400). Bank's sole 

office is located approxim ately 20 miles north of 

Applicant's main office in Tupelo, 5 miles north of 

Applicant's Guntown (population approximately 

300) office in Lee County, and 11 miles south of 

Applicant's three offices in Booneville (population 

approximately 5,900), the county seat of Prentiss 

County. All four towns are located on a major 

highway, U.S. 45.

Applicant maintains the only banking office in 

Guntown, and three of the six banking offices in 

Booneville, where it holds the largest share of local 

deposits. Thus, A pplicant is the major com petitor 

in the towns immediately north and south of 

Bank. There are 29 individuals, partnerships, and 

corporations which have deposits or loans or both 

at Applicant and Bank. These common customers 

had deposits of $259,230 at A pplicant (0.2 percent of its IPC deposits) and $153,425 at Bank 

(3.8 percent of its IPC deposits), and loans of 

$66,350 at A pplicant (0.8 percent of its loans) and 

$67,825 at Bank (3.04 percent of its loans). It is 

evident that the proposed merger w ill eliminate 

direct com petition between Applicant and Bank.

Six banks operate a total of 37 offices in Lee 

and Prentiss Counties, the approximate area of 

e ffe c tiv e com petition between Applicant and 

Bank. Banking is highly concentrated in this market. As of June 30, 1976, Applicant controlled

41.4 percent of the area's commercial bank deposits, the largest share; Bank of Mississippi controlled 32.6 percent, the second largest share; and 

First Citizens National Bank controlled 17.4 percent, the third largest share. Thus, the tw o largest 

banks controlled 74 percent o f the area's deposits, 

and the three largest controlled 91 percent. Bank 

controlled 1.6 percent of the area's deposits as of 

the same date. If the proposed merger is consummated, the tw o largest banks in Lee and Prentiss 

Counties would control over three-fourths of the 

area's commercial bank deposits, and the number 

of independent banks there would be reduced 

from six to five.

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118 FEDERAL DEPOSIT INSURANCE CORPORATION

Deposits at Applicant's Guntown and Booneville offices have recently exhibited favorable 

growth trends. According to the application, deposits at its Guntown office increased 4.5 percent 

and 20.14 percent in 1975 and 1976, respectively, 

and deposits at its Booneville branches increased 

from 4.6 percent to 10.1 percent annually since 

1973. Bank's deposits increased by $2.6 m illion in

1975 and $1.6 m illion in 1976 (an increase of 54.5 

percent). It is thus apparent that the area is capable of supporting the successful operation of both 

banks. Moreover, we note that according to the 

application, Bank's interest rates for certain types 

of loans are somewhat lower than Applicant's (the 

application states that the loan rates after the proposed merger w ill be similar to Applicant's, which 

would entail an increase fo r certain of Bank's loan 

rates). This apparent effort to compete aggressively for loans may have contributed to Bank's 

growth during the short time it has been operating.

We conclude that the proposed merger w ill have 

an adverse effect upon com petition, and we urge 

the Corporation to deny the application.

Basis for Corporation denial,

November 22, 1977

The Peoples Bank and Trust Company, Tupelo, 

Mississippi ("Peoples Bank"), a State nonmember 

insured bank w ith total resources of $149,867,000 

and total IPC deposits of $119,112,000, 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 Baldwyn State Bank, Baldwyn, Mississippi, a State nonmember insured bank 

w ith total resources of $5,451,000 and total IPC 

deposits of $4,271,000. Peoples Bank has applied 

also to establish the sole office of Baldwyn State 

Bank as a branch of the resultant bank.

Competition. Peoples Bank operates 18 offices 

in northeastern Mississippi. It has its main office 

and nine branches in Lee County, three branches 

in Prentiss County, three in Clay County, and two 

in Pontotoc County. Its main office is located in 

the city of Tupelo. As of December 31, 1976, 

Peoples Bank was the eighth largest commercial 

bank in Mississippi, holding 2.0 percent of total 

commercial bank deposits.

Baldwyn State Bank was established in 1974 

and operates its sole office in Baldwyn, a town 

straddling the Prentiss County-Lee County boundary. Baldwyn is located approximately 20 miles 

north of Tupelo. Since its opening, Baldwyn State 

Bank has been a profitable institution and a viable 

com petitor.

The primary trade area of Baldwyn State Bank 

is represented by that area w ithin 12 road-miles of 

Baldwyn. This market is composed of southern 

Prentiss County as far north as Boonesville, sparsely populated northeastern Union County, and 

northern Lee County as far south as Saltillo. In 

this market, 5 commercial banks operate a total of 

12 offices. This market area had a 1970 population of approxim ately 24,650, which represents 

an increase of 10 percent over 1960. O f commercial bank IPC deposits aggregating $59,961,000 

held on June 30, 1976, by these offices, Baldwyn 

State Bank had the fourth largest share, 5.5 percent. Peoples Bank held the largest share of these 

deposits, 54.3 percent, at its five offices located in 

the market area. Of the offices of Peoples Bank 

located in this market, three are in Boonesville, 11 

road-miles north of Baldwyn.. Also, one is in Guntown and one is in Saltillo. Guntown and Saltillo 

are located, respectively, 5 road-miles and 11 roadmiles south of Baldwyn. The communities of 

Boonesville, Guntown, and Saltillo are connected 

with Baldwyn by U.S. Highway 45, the major 

north-south thoroughfare in the area. Due to the 

proxim ity of the five offices of Peoples Bank to 

the single office of Baldwyn State Bank and the 

market deposit shares held by the tw o banks, significant existing com petition between the banks 

would be eliminated by approval of the proposed 

merger. In addition, upon consummation of the 

proposed transaction, the number of competing 

banks represented in this expanding market would 

be reduced from five to four. Moreover, Peoples 

Bank would emerge from the transaction operating 

6 of the area's 12 banking offices and controlling

59.8 percent of the area's commercial bank IPC 

deposits. Therefore, substantial market concentration also w ill result.

The legal branching areas of the applying banks 

overlap to a considerable degree; however, there 

appears to be no significant potential for com petition to increase between them through their de

novo expansion in the future. In the relevant market of Baldwyn State Bank, the only com m unity 

of significant population presently open fo r de

novo entry by either proponent is Boonesville. 

Peoples Bank, however, has three of the six offices 

now operating in this com m unity and would likely 

find it unattractive fo r further expansion. Baldwyn 

State Bank, for its part, would be unlikely to enter 

Boonesville to compete directly w ith the three 

commercial banks presently established therein.

The proposed merger, if consummated, would: 

(1) e lim in a te significant existing com petition 

between the applying banks, (2) increase substantially the deposit concentration in the relevant 

market, and (3) reduce from five to four the number of banking alternatives available to residents of 

the market area. On the basis of the foregoing, and 

in consideration of the standards established by 

the Supreme Court in cases involving horizontal 

mergers of banks which compete in the same local 

market, the Board of Directors is of the opinion 

that the proposed transaction would "substantially 

lessen com petition" w ithin the relevant area.

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BANK ABSORPTIONS DENIED BY THE CORPORATION 119

Financial and Managerial Resources; Future

Prospects. The financial and managerial resources 

of the applying banks are satisfactory, and each 

has favorable future prospects. The future prospects of the resultant bank would also be favorable.

Convenience and Needs o f the Community to

be Served. Approval of the proposed merger would 

result in no new services to residents of the market 

area. The services, including availability of a trust 

department and larger loan limits, that would be 

offered by the resultant bank are available at the

nearby offices of Peoples Bank. The application 

for merger indicates that the loan rates of Peoples 

Bank would be used by the resultant bank. Such 

action would apparently result in slight increases 

in the charges for some types of loans. Moreover, 

approval of the proposal would result in a lessening of the commercial banking alternatives available in this market.

The Board of Directors, accordingly, believes 

that the application should be, and it hereby is, 

denied.

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Federal Reserve Bank of St. Louis
REGULATIONS AND LEGISLATION

PART FOUR

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Federal Reserve Bank of St. Louis
123

LEGISLATION - 1977

Depository Institutions Amendments

of 1977 Act. The Depository Institutions 

Amendments of 1977 Act, Public Law 

95-22, has three titles. Title I extended 

until December 15,1977, the flexible Regulation Q authority of the Federal financial regulatory agencies to establish ceilings 

on rates paid by financial institutions on 

time and savings deposits.(The expiration 

date was extended again later in the year to 

December 15, 1978.) Title II of the act 

extended until October 1, 1977, the 

authority of Federal Reserve Banks to deal 

directly with the Treasury in the purchase 

and sale of obligations of the United 

States; that authority was extended until 

May 1, 1978, by Public Law 95-154. Title 

III enlarged significantly the powers of 

Federal credit unions, primarily by raising 

dollar limits and extending maturities on 

loans, secured and unsecured. The most 

important of these changes now permits 

real estate loans with maturities of up to 30 

years. The previous maturity lim it on these 

loans was 10 years.

Fair Debt Collection Practices Act. Public Law 95-109 added Title V III, Fair Debt 

Collection Practices Act, to the Consumer 

Credit Protection Act, which becomes 

effective on March 20, 1978. The stated 

purpose of this act is to protect consumers 

from unfair, harassing, and deceptive debt 

collection practices w ithout imposing unnecessary restrictions on ethical debt collectors. A debt col lector may not seek location information about a consumer debtor 

from a third person after he knows that the 

debtor has counsel. In most cases, the collector may not communicate with the 

debtor at an unusual time or place. The 

collector may not use false or misleading 

representations in connection with collection, and he may be held liable in damages 

if he does so. Also, if he brings suit, the 

collector must sue the debtor where he 

resides, where he signed the contract sued 

on, or where any real estate securing the 

debt may be located. The Federal Trade

Commission has primary administrative 

enforcement responsibility under this act, 

but the bank regulatory agencies have enforcement powers for banks subject to 

their primary jurisdiction that collect 

debts for other banks which are the principal creditors.

Community Reinvestment Act. The 

Community Reinvestment Act of 1977, 

Title VIII of the Housing and Community 

Development Act of 1977, Public Law 

95-128, directs the Federal financial supervisory agencies to take into account a financial institution's record of meeting the 

credit needs of communities it serves, including low- and moderate-income neighborhoods, when it considers any application for a national charter, deposit insurance, the establishment or relocation of a 

branch, or a merger or consolidation or the 

acquisition of the shares of assets of financial institutions. The agencies are required 

to issue regulations to implement the act 

by November 1978. Title VII of the same 

act repealed the prohibition on loans by 

federally regulated financial institutions 

secured by property in areas with special 

flood hazards if the community is not participating in the flood insurance program, 

substituting a requirement that the lender 

notify property owners whether Federal 

disaster relief will be available to such 

property if a flood occurs.

Tax and Loan Accounts Bill. Public 

Law 95-147, the Tax and Loan Accounts 

Bill, authorizes the Secretary of the Treasury to invest excess cash in interest-bearing 

obligations of federally insured banks, savings and loan associations, and credit 

unions. Up until this time, only commercial banks could hold tax and loan accounts (as demand deposits). By permitting the conversion of this type of deposit 

liability into short-term borrowings, the 

general statutory prohibition on paying 

interest on demand deposits does not 

apply. This legislation also repealed a 1933 

Joint Resolution declaring that contractual provisions calling for the payment of 

an obligation in gold or any particular kind

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124 FEDERAL DEPOSIT INSURANCE CORPORATION

of currency, or in an amount of money 

measured thereby, were against public 

policy. This restores the enforceability of 

these so-called gold clauses in domestic 

contracts entered into on and after October 28, 1977.

Public Law 95-188. Title I of Public 

Law 95-188 extended Regulation Q authority for a year until December 15, 

1978. Title II provides for congressional 

oversight hearings on monetary and credit 

policies, for Senate confirmation of future 

Federal Reserve Chairmen and ViceChairmen, and for increased numbers of 

Federal Reserve Bank directors representing the public. Title III amended the Bank 

Holding Company Act to authorize the 

Board of Governors to grant an extension 

of the time period within which a regulated 

financial institution must dispose of shares 

acquired as security for a debt previously 

contracted and to provide for expedited 

approvals in failing bank situations.

RULES AND REGULATIONS

Rules o f practice and procedures

(P art 308). On November 14, 1977,

the FD IC adopted rules (sections 

308.50-.58) providing hearing procedures 

and standards for individuals suspended 

or prohibited from participating in the 

a ffa irs of insured State nonmember 

banks. The FDIC has authority under section 8(g) of the Federal Deposit Insurance Act to suspend or prohibit from 

participation in the affairs of an insured 

State nonmember bank any officer, director, or other person who is charged 

with a felony involving dishonesty or 

breach of trust. The new rules were intended to make available to such persons 

specific procedures for hearings in such 

cases and were designed to meet constitutional due process requirements.

Privacy Act (Part 310). Part 310 was 

amended to permit an individual whose 

request for records under the Privacy Act is 

initially denied to appeal the denial to the 

FDIC's Board of Directors. Also, the

FDIC's "systems of records" were revised 

and two new systems of records were 

added ("Municipal Securities Principals 

and Representatives System" and "Medical Records and Emergency Contact Information System").

Government in the Sunshine Act (Part

311). Part 311, implementing the requirements of the Government in the Sunshine 

Act, became effective on March 12, 1977. 

The objective of the act and of Part 311 is 

to provide the public with the fullest practicable information about the decisionmaking process of the agency consistent 

with protecting the rights of individuals 

and the ability of the FDIC to carry out its 

responsibilities. Under the Government in 

the Sunshine Act, meetings or portions of 

meetings of the FDIC's Board of Directors 

must be open to the public unless the information to be discussed comes within the 

act's exemptions and the necessity for closing the meeting outweighs the public interest in having an open meeting. Among the 

act's exemptions are information contained in or related to bank examination, 

condition, or operation reports; information the premature disclosure of which 

would significantly endanger the stability 

of a financial institution; and privileged or 

confidential commercial or financial information.

Interest on deposits (Part 329). Part 

329 was amended to provide that "banking 

companies" in Massachusetts are to be 

treated as mutual savings banks for purposes of interest rate regulation. Only two 

such banks operate in Massachusetts.

Part 329 was also amended, effective 

July 6, 1977, to allow payment of 7-3/4 

percent interest on Individual Retirement 

Account and Keogh Plan deposits with 

3-year minimum maturities. This is the 

highest rate of interest that may be paid on 

any kind of deposit obligation of less than 

$100,000 by any federally regulated financial institution, including th rift institutions.

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RULES AND REGULATIONS 125

posits (section 329.4(d)) for flood victims 

in certain areas of Pennsylvania, Missouri, 

and Kansas. The suspensions gave victims 

of the flood disasters ready access to their 

time deposit funds for reconstruction and 

similar purposes. Each insured nonmember 

bank was given the discretion to decide 

whether or not to allow such penalty-free 

withdrawals. In the case of the Pennsylvania flood disaster, the suspension was 

made retroactive to July 21, 1977, and 

expires on January 31,1978.1 n the case of 

the Missouri and Kansas flood disasters, 

the suspensions were made retroactive to 

September 14, 1977, and September 20, 

1977, respectively, and expire on March 

31, 1978.

Section 329.4(d) was also amended, 

effective April 13, 1977, to permit premature withdrawal of that portion of a 

depositor's time deposit funds which become uninsured as the result of the merger 

of two insured banks. In other words, a 

depositor who had a $40,000 time deposit 

in each of two merged insured banks could 

withdraw $40,000 from the combined 

$80,000 time deposit in the resulting bank 

before maturity of the deposit, and w ithout any penalty, if he notifies the bank of 

his intentions to do so within one year of 

the merger.

On April 19, 1977, the FDIC decided 

not to adopt an amendment to Part 329 

proposed in March 1976 which would have 

prohibited insured nonmember banks 

from paying interest on pooled time deposits of $100,000 or more at a rate in 

excess of existing rate ceilings established 

for time deposits of less than $100,000. 

Opposition to the proposal focused on the 

view that it would be unfair to small depositors. Because of this and concern that 

the proposal, if adopted, might prove d ifficult to enforce, the FDIC decided against 

adopting the proposed amendment.

Deposit insurance coverage (Parts 330,

331). Under the FDIC insurance regulations, the deposit accounts of a corporation are insured up to $40,000 in any one 

insured bank. On February 15, 1977, the 

FDIC adopted amendments to its insurance regulations designed to apply this 

same rule to deposit accounts of any registered investment company, even if that 

company is organized in some noncorporate form. Specifically, for deposit insurance purposes, the FDIC will treat as a corporation any trust or other business arrangement registered, or required to be 

registered, with the Securities and Exchange Commission as an investment 

company under the Investment Company

FEDERAL DEPOSIT INSURANCE COVERAGE 

PER DEPOSITOR 1934-1977

A m ount (each insured bank) Effective date

$ 2,500. . ................................................................................................................................. January 1, 1934

5,000..................................................................................................................................... July 1, 1934

10.00 0 .. .....................................................................................................................September 21,1950

15.00 0 ............October 16,1966

20.00 0 ..........December 23,1969

40.00 0 .......... November 27, 1974

100,000 - Time and savings deposits of government u n its .............................. .............November 27, 1974

(except state and local government deposits 

held in out-of-state banks)

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

Act of 1940. The amendments do not 

cover trusts that are not subject to registration under that act, such as employees' 

pension and profit-sharing trusts; charitable trusts, and common trust funds maintained by bank trust departments.

The amendments were intended to clarify the extent of insurance coverage on 

deposits of certain business trusts and 

other entities which may be viewed as de

facto corporations because of their public 

ownership and business objectives. Some 

confusion had existed as to whether such 

deposits are insured according to each individual investor's beneficial interest in the 

trust or, alternatively, according to the 

aggregate deposits held by the trust in each 

insured bank.

Securities of insured State nonmember

banks. On March 3, 1977, the FDIC 

amended Part 335 to revise quarterly disclosure requirements for insured State 

nonmember banks that have registered 

securities subject to the registration, reporting, and proxy provisions of the Securities Exchange Act of 1934. The amendments were intended to render the Corporation's requirements regarding quarterly 

disclosure of interim results in financial reports substantially similar to comparable 

reporting requirements of the SEC.

On April 5, 1977, the FDIC adopted a 

new regulation (Part 342) dealing with 

applications for a stay or review by the 

FDIC of certain actions taken by registered 

bank clearing agencies that clear securities 

transactions. Part 342 implements the 

requirements of the Securities Act Amendments of 1975.

On May 27, 1977, the FDIC released for 

comment a revision of a previously proposed regulation (Part 340). The revised 

reg ula tion would establish minimum 

standards for the use of offering circulars 

and the disclosure of material facts in connection with the public issuance of securities by insured State nonmember banks. 

The proposed regulation would require 

that offerings of bank securities meeting 

certain specified criteria be accomplished

through the use of an offering circular filed 

with the Corporation which conforms to 

the requirements set forth in the regulation.

As part of its continuing responsibility 

to enforce compliance with applicable statutes and rules by insured State nonmember 

banks that act as municipal securities dealers, the FDIC adopted a new regulation 

(Part 343) prescribing the forms and method to be used by bank municipal securities 

dealers and their associated persons in 

complying with rules adopted by the Municipal Securities Rulemaking Board.

Failure to file required reports. Section 

303.13 was amended to delegate to the 

General Counsel or his designee the authority to levy and collect civil penalties pursuant to section 7(a)(1) of the Federal Deposit Insurance Act (12 U.S.C. section 

1817(a)(1)). Section 7(a)(1) authorizes 

the FDIC to impose a penalty on any insured State nonmember bank that fails to 

file a timely Report of Condition, Report 

of I ncome, or other required report.

Information requests. Part 309 was revised, among other purposes, to simplify 

the procedures for allowing public access 

to information under the Freedom of Information Act and to clarify the delegated 

authority of the General Counsel and the 

Director of the Division of Bank Supervision to disclose confidential FDIC documents. Under the revised delegations of 

authority, disclosure of confidential information must generally be authorized by 

either the Chairman of the FDIC's Board 

of Directors or its Director of the Division 

of Bank Supervision. The authority of the 

General Counsel is generally limited to requests made in connection with administrative or judicial proceedings.

Flood insurance. Section 703 of Public 

Law 95-128 amended section 202(b) of 

the Flood Disaster Protection Act of 1973 

and had the effect of revoking section 

339.2 of the Corporation's regulations. 

Section 339.2 generally prohibited insured 

State nonmember banks from making, 

increasing, extending, or renewing any

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Federal Reserve Bank of St. Louis
RULES AND REGULATIONS 127

loans secured by improved real estate or a 

mobile home located in a designated flood 

hazard area if the community in which the 

property is located was not participating in 

the national flood insurance program. As 

required under the provisions of section 

703 of Public Law 95-128, the FDIC 

amended its regulations to require insured 

State nonmember banks, as a condition of 

making, increasing, extending, or renewing 

any loan secured by improved real estate or 

a mobile home located in a designated 

flood hazard area, to notify the purchaser 

or lessee of the property as to whether Federal disaster relief assistance will be available for the property in the event the property is damaged by a flood during a federally declared disaster.

Fair housing. On October 7, 1977, the 

FDIC published for comment fair housing 

regulations pertaining to the home loan 

practices of insured State nonmember 

banks (Part 338). The proposed regulations would (1) establish recordkeeping requirements for insured State nonmember 

banks pertaining to home purchase and

home improvement loans and (2) incorporate an amended version of the advertising 

and poster requirements contained in the 

policy statement on fair housing entitled 

"Nondiscrimination in Real Estate Loan 

Activities/' The proposed regulations are 

intended to provide a basis for a more effective FDIC fair housing enforcement 

program.

Truth-in-lending enforcement guidelines. On October 21, 1977, the FDIC, the 

Board of Governors of the Federal Reserve 

System, the Comptroller of the Currency, 

the Federal Home Loan Bank Board, and 

the National Credit Union Administration 

jointly published for comment proposed 

uniform enforcement guidelines with respect to the Truth in Lending Act and its 

regulations. The purpose of the guidelines 

is to provide the public with an indication 

of the criteria the financial supervisory 

agencies will apply in enforcing this act and 

its regulations. Consideration of uniform 

criteria was felt to be advisable because the 

guidelines would cut across jurisdictional 

lines.

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f ................... \

STATISTICS OF BANKS

AND DEPOSIT INSURANCE

PART FIVE

V J

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

Table 101. Changes in number and classification of banks and branches in the United States (States and 

other areas) during 1977

Table 102. Changes in number of commercial banks and branches in the United States (States and other 

areas) during 1977, by State

Table 103. Number of banking offices in the United States (States and other areas), December 31, 1977

Banks grouped by insurance status and class o f bank, and by State or area and type of office

Table 104. Number and assets of all commercial and mutual savings banks in the United States (States and 

other areas), December 31, 1977

Banks grouped by class and asset size

Table 105. Number, assets, and deposits of all commercial banks in the United States (States and other 

areas), December 31, 1977

Banks grouped by asset size and State

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Federal Reserve Bank of St. Louis
Banks: Commercial banks include the follow ing categories of banking

institutions:

National banks;

Incorporated State banks, trust companies, and bank and trust companies

regularly engaged in the business of receiving deposits, whether demand or

time, except mutual savings banks;

Stock savings banks, including guaranty savings banks in New Hampshire;

Industrial and Morris Plan banks which operate under general banking

codes, or are specifically authorized by law to accept deposits and in practice

do so, or the obligations of which are regarded as deposits fo r deposit insurance;

A regulated certificated bank in Georgia; government-operated banks in

North Dakota and Puerto Rico; a savings institution, known as a "tru st company," operating under special charter in Texas; the Savings Banks Trust

Company in New Y ork; the Savings Bank and Trust Company Northwest

Washington in the State of Washington; and branches of foreign banks engaged in a general deposit business in Illinois, Massachusetts, New York,

Oregon, Washington, Guam, Puerto Rico, and Virgin Islands;

Private banks under State supervision, and such other private banks as are

reported by reliable unofficial sources to be engaged in deposit banking.

Nondeposit trust companies include institutions operating under trust

company charters which are not regularly engaged in deposit banking but are

engaged in fiduciary business other than that incidental to real estate title or

investment activities.

Mutual savings banks include all banks operating under State banking

codes applying to mutual savings banks.

Institutions excluded. Institutions in the following categories are excluded, though such institutions may perform many of the same functions as

commercial and savings banks:

Banks that have suspended operations or have ceased to accept new

deposits and are proceeding to liquidate their assets and pay off existing

deposits;

Building and loan associations, savings and loan associations, credit

unions, personal loan companies, and similar institutions, chartered under

laws applying to such institutions or under general incorporation laws, regardless of whether such institutions are authorized to accept deposits from

the public or from their members and regardless of whether such institutions

are called "banks” (a few institutions accepting deposits under powers

granted in special charters are included);

Morris Plan companies, industrial banks, loan and investment companies,

and similar institutions except those mentioned in the description of institutions included;

Branches of foreign banks and private banks which confine their business

to foreign exchange dealings and do not receive "deposits” as that term is

commonly understood;

Institutions chartered under banking or trust company laws, but operating as investment or title insurance companies and not engaged in deposit

banking or fiduciary activities;

Federal Reserve Banks and other banks, such as the Federal Home Loan

Banks and the Savings and Loan Bank of the State of New York, which

operate as rediscount banks and do not accept deposits except from financial

institutions.

Branches: Branches include all offices of a bank other than its head

office, at which deposits are received, checks paid, or money lent. Banking

facilities separate from a banking house, banking facilities at government

establishments, offices, agencies, paying or receiving stations, drive-in facilities, and other facilities operated for lim ited purposes are defined as

branches under the Federal Deposit Insurance Act, section 3(o), regardless of

the fact that in certain States, including several that prohibit the operation

of branches, such lim ited facilities are not considered branches w ithin the

meaning of State law.

NUMBER OF BANKS AND BRANCHES 131

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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 1977

All banks Commercial banks and nondeposit trust companies Mutual savings banks

Insured Noninsured

Type of change

Total Insured

IMoninsured Total

Total

Members 

F.R. System

Not

members

F.R.

System

Banks

of

deposit

Nondeposit

trust

companies1

Total Insu red

Noninsured

National State

ALL BANKING OFFICES

Number of offices, December 31,1977 ............................................................. 50,692 49,808 884 47,911 47,506 22,285 5,610 19,611 306 99 2,781 2,302 479

Number of offices, December 31,1976 ............................................................. 48,653 47,857 796 46,100 45,732 21,4592 5,695 18,578 278 90 2,553 2,125 428

Net change during year................................................................................... +2,039 +1,951 +88 +1,811 +1,774 +826 -85 +1,033 +28 +9 +228 +177 +51

Offices opened......................................................................................... 2,522 2,415 107 2,264 2,211 1,283 146 782 41 12 258 204 54

Banks.................................................................................................... 206 157 49 206 157 39 17 101 38 11 0 0 0

Branches.............................................................................................. 2,316 2,258 58 2,058 2,054 1,244 129 681 3 1 258 204 54

Offices closed........................................................................................... 483 469 14 452 441 245 70 126 9 2 31 28 3

Banks.................................................................................................... 169 159 10 163 153 83 4 66 8 2 6 6 0

Branches.............................................................................................. 314 310 4 289 288 162 66 60 1 0 25 22 3

Changes in classification........................................................................... 0 +5 -5 -1 +4 -212 -161 +377 -4 -1 +1 +1 0

Among banks...................................................................................... 0 +3 -3 0 +3 -38 -21 +62 -2 -1 0 0 0

Among branches................................................................................ 0 +2 -2 -1 + 1 -174 -140 +315 -2 0 +1 +1 0

BANKS

Number of banks, December 31,1977................................................................ 15,207 14,741 466 14,740 14,418 4,655 1,015 8,748 235 87 467 323 144

Number of banks, December 31,1976................................................................ 15,170 14,740 430 14,697 14,411 4,737 1,023 8,651 207 79 473 329 144

Net change during year................................................................................... +37 +1 +36 +43 +7 -82 -8 +97 +28 +8 -6 -6 0

Banks beginning operation........................................................................ 206 157 49 206 157 39 17 101 38 11 0 0 0

New banks........................................................................................... 195 157 38 195 157 39 17 101 33 5 0 0 0

Banks added to count3........................................................................ 11 0 11 11 0 0 0 0 5 6 0 0 0

Banks ceasing operation........................................................................... 169 159 10 163 153 83 4 66 8 2 6 6 0

Absorptions, consolidations, and mergers......................................... 161 158 3 155 152 82 4 66 3 0 6 6 0

Closed because of financial difficulties............................................... 0 0 0 0 0 0 0 0 0 0 0 0 0

Other liquidations................................................................................ 0 0 0 0 0 0 0 0 0 0 0 0 0

Discontinued deposit operations....................................................... 4 1 3 4 1 1 0 0 3 0 0 0 0

Banks deleted from count.................................................................. 4 0 4 4 0 0 0 0 2 2 0 0 0

Noninsured banks becoming insured....................................................... 0 +3 -3 0 +3 0 0 +3 -2 -1 0 0 0

132 FEDERAL DEPOSIT INSURANCE CORPORATION

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Other changes in classification.................................................................. 0 0 0 0 0 -38 -21 +59 0 0 0 0 0

National succeeding State bank......................................................... 0 0 0 0 0 +6 -1 -5 0 0 0 0 0

State succeeding national bank......................................................... 0 0 0 0 0 -44 +1 +43 0 0 0 0 0

Admission of insured bank to F.R. System...................................... 0 0 0 0 0 0 +5 -5 0 0 0 0 0

Withdrawal from F.R. System with continued insurance................... 0 0 0 0 0 0 -26 +26 0 0 0 0 0

Insured bank becoming noninsured b a n k......................................... 0 0 0 0 0 0 0 0 0 0 0 0 0

Mutual savings bank converted to commercial ba n k........................ 0 0 0 0 0 0 0 0 0 0 0 0 0

Changes not involving number in any class

Change in title..................................................................................... 273 263 10 268 258 85 15 158 9 1 5 5 0

Change in location............................................................................. 25 25 0 25 25 10 1 14 0 0 0 0 0

Change in title and location............................................................... 7 7 0 7 7 2 2 3 0 0 0 0 0

Change in name of location............................................................... 12 12 0 12 12 3 1 8 0 0 0 0 0

Change in location within city............................................................ 226 220 6 220 216 71 3 142 2 2 6 4 2

Change in corporate powers

Granted trust powers.......................................................................... 65 65 0 63 63 0 0 63 0 0 2 2 0

BRANCHES

Number of branches, December 31,19774 ....................................................... 35,485 35,067 418 33,171 33,088 17,630 4,595 10,863 71 12 2,314 1,979 335

Number of branches, December 3 1,19764 ....................................................... 33,483 33,117 366 31,403 31,321 162 4,672 9,927 71 11 2,080 1,796 284

Net change during year.................................................................................. +2,002 +1,950 +52 +1,768 +1,767 +908 -77 +936 0 +1 +234 +183 +51

Branches opened for business.................................................................. 2,316 2,258 58 2,058 2,054 1,244 129 681 3 1 258 204 54

Facilities designated by Treasury....................................................... 3 3 0 3 3 3 0 0 0 0 0 0 0

Absorbed bank converted to branch................................................. 144 144 0 139 139 85 4 50 0 0 5 5 0

Branch replacing head office relocated.............................................. 40 40 0 39 39 16 2 21 0 0 1 1 0

New branches..................................................................................... 1,959 1,930 29 1,739 1,736 1,029 115 592 2 1 220 194 26

Branches and/or facilities added to count3 ...................................... 170 141 29 138 137 111 8 18 1 0 32 4 28

Branches discontinued............................................................................. 314 310 4 289 288 162 66 60 1 0 25 22 3

Facilities designated by Treasury....................................................... 3 3 0 3 3 2 0 1 0 0 0 0 0

Branches.............................................................................................. 270 267 3 247 246 140 53 53 1 0 23 21 2

Branches and/or facilities deleted from count................................... 41 40 1 39 39 20 13 6 0 0 2 1 1

Other changes in classification.................................................................. 0 +2 - 2 -1 +1 -174 -140 +315 -2 0 +1 +1 0

Branches changing class as a result of conversion.............................. 0 0 0 0 0 -161 +5 +156 0 0 0 0 0

Branches of noninsured banks admitted to insurance........................ 0 +2 -2 0 +2 0 0 +2 -2 0 0 o o

Branches transferred through absorption, consolidation, or merger. . 0 0 0 -1 -1 -13 -6 + 18 0 0 +1 +1 0

Branches of insured banks withdrawing from F.R.S.......................... 0 0 0 0 0 0 -139 +139 0 0 0 0 0

Changes not involving number in any class

Changes in operating powers of branches......................................... 4 4 0 4 4 3 0 1 0 0 0 0 0

Branches transferred through absorption, consolidation, or merger. . 116 110 6 116 100 59 6 35 6 0 10 10 0

Changes in title, location, or name of location................................. 507 504 3 507 465 244 37 184 0 0 42 39 3

11ncludes noninsured nondeposit trust companies, members of the Federal Reserve System.

2 Revised.

3Banks or branches opened prior to 1977 but not included in count as of December 31, 1976.

includes facilities established at the request of the Treasury or commanding officer of government installations, and also a few seasonal branches.

NUMBER OF BANKS AND BRANCHES 133

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Table 102. CHANGES IN NUMBER OF COMMERCIAL BANKS AND BRANCHES IN THE UNITED STATES 

(STATES AND OTHER AREAS) DURING 1977, BY STATE

State

In operation Net change 

during 1977

Beginning operation in 1977 Ceasing operation in 1977

Dec. 31, 1977 Dec. 31, 1976 Banks Branches Banks Branches

Banks Branches Banks Branches Banks Branches New Other New Other Absorptions Other Branches Other

Total United States................. 14,740 33,171 14,697 31,4021 +43 +1,769 195 11 1,877 181 155 8 247 42

50 States and D.C.................... 14,710 32,890 14,671 31,119 +39 + 1,771 192 8 1,873 180 154 7 241 41

Other areas.............................. 30 281 26 283 +4 -2 3 3 4 1 1 1 6 1

States

Alabama................................. 310 509 303 484 +7 +25 7 0 28 0 0 0 3 0

Alaska .................................... 12 106 12 98 NA +8 0 0 10 0 0 0 2 0

Arizona.................................... 25 465 24 458 + 1 +7 1 0 11 0 0 0 4 0

Arkansas................................. 262 353 261 341 +1 + 12 2 0 14 0 0 1 1 1

California.............................. 235 3,778 225 3,696 + 10 +82 15 0 103 6 4 1 21 6

Colorado................................. 372 64 359 56 + 13 +8 11 2 10 0 0 0 2 0

Connecticut............................ 72 577 72 572 0 +5 1 0 8 1 1 0 4 0

Delaware................................. 19 143 18 142 + 1 + 1 1 0 3 0 0 0 2 0

District of Columbia.............. 16 133 16 131 NA +2 0 0 3 0 0 0 1 0

Florida.................................... 686 507 757 226 -71 +281 7 0 206 79 78 0 4 0

Georgia.................................... 441 752 442 718 -1 +34 1 0 42 3 2 0 8 3

Hawaii.................................... 11 158 11 156 NA +2 0 0 3 0 0 0 1 0

Idaho....................................... 24 215 24 211 0 +4 1 0 3 1 1 0 0 0

Illinois.................................... 1,270 306 1,255 233 +15 +73 17 0 73 3 1 1 3 0

Indiana.................................... 409 995 408 948 +1 +47 1 0 54 2 0 0 8 1

Io w a ....................................... 656 509 659 421 -3 +88 0 0 86 5 3 0 3 0

Kansas.................................... 616 208 616 169 0 +39 1 0 37 3 1 0 1 0

Kentucky .............................. 344 606 343 560 + 1 +46 1 0 47 1 0 0 1 1

Louisiana................................. 254 670 254 634 0 +36 1 0 44 2 1 0 7 3

Maine....................................... 43 297 43 291 NA +6 0 0 8 0 0 0 1 1

Maryland................................. 108 812 113 783 -5 +29 0 0 30 6 5 0 6 1

Massachusetts......................... 148 927 148 928 0 -1 0 2 14 0 2 0 13 2

Michigan................................. 362 1,704 360 1,633 +2 +71 3 0 77 1 1 0 7 0

Minnesota.............................. 754 76 752 57 +2 + 19 2 0 22 0 0 0 1 2

Mississippi .s............................ 185 604 184 577 + 1 +27 4 0 25 3 3 0 1 0

Missouri................................. 719 372 711 339 +8 +33 5 3 33 3 0 0 2 1

Montana................................. 160 21 158 18 +2 +3 2 0 3 0 0 0 0 0

Nebraska................................. 458 177 456 98 +2 +79 2 0 79 0 0 0 0 0

Nevada .................................... 8 119 8 113 NA +6 0 0 6 0 0 0 0 0

New Hampshire...................... 79 126 79 119 0 +7 1 0 8 0 0 1 1 0

134 FEDERAL DEPOSIT INSURANCE CORPORATION

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New Jersey.............................. 188 1,498 195 1,4612 -7 +37

New Mexico............................ 84 216 83 210 +1 +6

New Y o rk .............................. 295 3,313 277 3,265! +18 +48

North Carolina...................... 90 1,654 92 1,621 -2 +33

North Dakota......................... 173 110 171 94 +2 +16

O h io ....................................... 487 1,827 490 1,739 -3 +88

Oklahoma.............................. 483 175 475 104 +8 +71

Oregon.................................... 55 495 48 478 +7 + 17

Pennsylvania............................ 387 2,360 392 2,324 -5 +36

Rhode Island......................... 17 225 17 224 NA +1

South Carolina...................... 88 629 90 607 -2 +22

South Dakota ......................... 158 137 157 129 +1 +8

Tennessee.............................. 348 910 348 814 0 +96

Texas....................................... 1,382 176 1,363 157 +19 +19

U ta h ....................................... 73 229 67 209 +6 +20

Vermont................................. 31 145 30 142 +1 +3

Virginia.................................... 280 1,255 284 1,211 -4 +44

Washington............................ 96 766 91 722 +5 +44

West V irgin ia......................... 227 51 222 49 +5 +2

Wisconsin............................... 628 427 630 347 -2 +80

Wyoming................................. 82 3 78 2 +4 +1

Other areas

Pacific Islands......................... 1 26 1 29 0 -3

Canal Zone............................... 0 2 0 2 0 NA

Puerto R ico............................ 23 229 18 226 +5 +3

Virgin Islands......................... 6 24 7 26 -1 -2

1 Revised.

2Does not include one commercial branch that transferred to an insured mutual savings bank. 

NA-No activity.

3 0 37 10 10 0 6 4

1 0 6 0 0 0 0 0

24 0 125 4 4 2 69 12

0 0 42 2 2 0 10 1

4 0 14 2 2 0 0 0

2 0 83 6 5 0 1 0

8 1 71 0 1 0 0 0

7 0 23 0 0 0 6 0

0 0 45 5 5 0 13 1

0 0 2 0 0 0 1 0

0 0 22 2 2 0 2 0

1 0 7 1 0 0 0 0

3 0 98 8 3 0 10 0

20 0 16 3 0 1 0 0

8 0 18 2 2 0 0 0

2 0 3 1 1 0 1 0

4 0 44 8 8 0 7 1

7 0 42 3 2 0 1 0

5 0 4 0 0 0 2 0

2 0 80 4 4 0 4 0

4 0 1 0 0 0 0 0

0 0 0 0 0 0 3 0

0 0 0 0 0 0 0 0

3 3 3 1 1 0 1 0

0 0 1 0 0 1 2 1

NUMBER OF BANKS AND BRANCHES 135

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T A B L E 103. N U M B E R OF B A N K IN G OFFICES IN THE U N ITE D STATES (STATES A N D O THER A R E A S ), DECEM BER 31, 1977

BANKS GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

All banks Commercial banks and nondeposit trust companies Mutual savings banks Percentage insured1

Insured Noninsured

All

banks

of

deposit

Commercial

banks

of

deposit

State and type of bank 

or office Total Insured

Noninsured Total Total

Members F.R. 

System

Nonmembers

F.R.

System

Banks 

of deposit2

Nondeposit

trust

companies3

Total Insured

Noninsured

Mutual

savings

banks

National State

United States-all offices........... 50,692 49,808 884 47,911 47,506 22,285 5,610 19,611 306 99 2,781 2,302 479 98.3 99.2 82.8

Banks....................................... 15,207 14,741 466 14,740 14,418 4,655 1,015 8,748 235 87 467 323 144 96.9 97.8 69.2

Unit Banks............................ 8,747 8,422 325 8,679 8,384 2,427 509 5,448 216 79 68 38 30 96.3 96.6 55.9

Banks operating branches . . 6,460 6,319 141 6,061 6,034 2,228 506 3,300 19 8 399 285 114 97.8 99.6 71.4

Branches4 ............................... 35,485 35,067 418 33,171 33,088 17,630 4,595 10,863 71 12 2,314 1,979 335 98.8 99.7 85.5

50 States & D.C.-all offices. . . 50,381 49,541 840 47,600 47,239 22,232 5,610 19,397 264 97 2,781 2,302 479 98.3 99.2 82.8

Banks....................................... 15,177 14,726 451 14,710 14,403 4,654 1,015 8,734 222 85 467 323 144 97.0 97.9 69.2

Unit banks............................ 8,730 8,416 314 8,662 8,378 2,426 509 5,443 207 77 68 38 30 96.4 96.7 55.9

Banks operating branches . . 6,447 6,310 137 6,048 6,025 2,228 506 3,291 15 8 399 285 114 97.9 99.6 71.4

Branches4 ............................... 35,204 34,815 389 32,890 32,836 17,578 4,595 10,663 42 12 2,314 1,979 335 98.9 99.8 85.5

Other Areas-all offices.............. 311 267 44 311 267 53 0 214 42 2 0 0 0 85.9 85.9 0.0

Banks....................................... 30 15 15 30 15 1 0 14 13 2 0 0 0 50.0 50.0 0.0

Unit banks............................ 17 6 11 17 6 7 0 5 9 2 0 0 0 35.3 35.3 0.0

Banks operating branches . .

Branches4 ...............................

13 9 4 13 9 0 0 9 4 0 0 0 0 69.2 69.2 0.0

281 252 29 281 252 52 0 200 29 0 0 0 0 89.7 89.7 0.0

State

Alabama-all offices................. 819 819 0 819 819 419 44 356 0 0 0 0 0 100.0 100.0 0.0

Banks....................................... 310 310 0 310 310 97 21 192 0 0 0 0 0 100.0 100.0 0.0

Unit banks............................ 157 157 0 157 157 34 13 110 0 0 0 0 0 100.0 100.0 0.0

Banks operating branches . . 153 153 0 153 153 63 8 82 0 0 0 0 0 100.0 100.0 0.0

Branches................................. 509 509 0 509 509 322 23 164 0 0 0 0 0 100.0 100.0 0.0

Alaska-all offices...................... 122 122 0 118 118 89 0 29 0 0 4 4 0 100.0 100.0 100.0

Banks....................................... 14 14 0 12 12 6 0 6 0 0 2 2 0 100.0 100.0 100.0

Unit banks............................ 3 3 0 2 2 0 0 2 0 0 1 1 0 100.0 100.0 100.0

Banks operating branches . . 11 11 0 10 10 6 0 4 0 0 1 1 0 100.0 100.0 100.0

Branches ................................. 108 108 0 106 106 83 0 23 0 0 2 2 0 100.0 100.0 100.0

Arizona-all offices................... 490 482 8 490 482 312 0 170 0 8 0 0 0 98.4 98.4 0.0

Banks....................................... 25 17 8 25 17 3 0 14 0 8 0 0 0 68.0 68.0 0.0

Unit banks............................ 15 7 8 15 7 7 0 6 0 8 0 0 0 46.7 46.7 0.0

Banks operating branches . . 10 10 0 10 10 2 0 8 0 0 0 0 0 100.0 100.0 0.0

Branches................................. 465 465 0 465 465 309 0 156 0 0 0 0 0 100.0 100.0 0.0

136 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Arkansas-all offices................. 615 612 3 615 612 243 23

Banks....................................... 262 259 3 262 259 72 6

Unit banks............................ 115 112 3 115 112 17 1

Banks operating branches . . 147 147 0 147 147 55 5

Branches................................. 353 353 0 353 353 171 17

California-all offices................. 4,013 3,989 24 4,013 3,989 2,805 338

Banks....................................... 235 220 15 235 220 58 7

Unit banks............................ 77 68 9 77 68 12 0

Banks operating branches . . 158 152 6 158 152 46 7

Branches4 .............................. 3,778 3,769 9 3,778 3,769 2,747 331

Colorado-all offices................. 436 352 84 436 352 171 22

Banks....................................... 372 288 84 372 288 133 18

Unit banks............................ 315 231 84 315 231 97 15

Banks operating branches . . 57 57 0 57 57 36 3

Branches................................. 64 64 0 64 64 38 4

Connecticut-all office s........... 1,001 1,000 1 649 648 226 83

Banks....................................... 137 136 1 72 71 21 2

Unit banks............................ 19 18 1 14 13 3 0

Banks operating branches . . 118 118 0 58 58 18 2

Branches ................................. 864 864 0 577 577 205 81

Delaware-all offices................. 187 185 2 162 160 9 0

Banks....................................... 21 19 2 19 17 5 0

Unit banks............................ 9 7 2 9 7 2 0

Banks operating branches . . 12 12 0 10 10 3 0

Branches ................................. 166 166 0 143 143 4 0

D.C.-all offices......................... 149 149 0 149 149 146 0

Banks....................................... 16 16 0 16 16 15 0

Unit banks............................ 3 3 0 3 3 3 0

Banks operating branches . . 13 13 0 13 13 12 0

Branches................................. 133 133 0 133 133 131 0

Florida-all offices.................... 1,193 1,189 4 1,193 1,189 522 41

Banks....................................... 686 682 4 686 682 263 30

Unit banks............................ 406 402 4 406 402 143 21

Banks operating branches . . 280 280 0 280 280 120 9

Branches ................................. 507 507 0 507 507 259 11

Georgia-all offices ........ 1,193 1,192 1 1,193 1,192 404 82

Banks....................................... 441 440 1 441 440 64 9

Unit banks............................ 208 207 1 208 207 13 2

Banks operating branches . . 233 233 0 233 233 51 7

Branches................................. 752 752 0 752 752 340 73

Hawaii-all offices...................... 169 163 6 169 163 13 0

Banks....................................... 11 8 3 11 8 2 0

Unit banks............................ 7 0 1 1 0 0 0

Banks operating branches . . 10 8 2 10 8 2 0

Branches................................. 158 155 3 158 155 11 0

346 1 2

181 1 2

94 1 2

87 0 0

165 0 0

846 0 24

155 0 15

56 0 9

99 0 6

691 0 9

159 84 0

137 84 0

119 84 0

18 0 0

22 0 0

339 1 0

48 1 0

10 1 0

38 0 0

291 0 0

151 0 2

12 0 2

5 0 2

7 0 0

139 0 0

3 0 0

1 0 0

0 0 0

1 0 0

2 0 0

626 1 3

389 1 3

238 1 3

151 0 0

237 0 0

706 1 0

367 1 0

192 1 0

175 0 0

339 0 0

150 0 6

6 0 3

0 0 1

6 0 2

144 0 3

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

352 352 0

65 65 0

5 5 0

60 60 0

287 287 0

25 25 0

2 2 0

0 0 0

2 2 0

23 23 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

99.5 99.5 0.0

98.9 98.9 0.0

97.4 97.4 0.0

100.0 100.0 0.0

100.0 100.0 0.0

99.4 99.4 0.0

93.6 93.6 0.0

88.3 88.3 0.0

96.2 96.2 0.0

99.8 99.8 0.0

80.7 80.7 0.0

77.4 77.4 0.0

73.3 73.3 0.0

100.0 100.0 0.0

100.0 100.0 0.0

99.9 99.8 100.0

99.3 98.6 100.0

94.7 92.9 100.0

100.0 100.0 100.0

100.0 100.0 100.0

98.9 98.8 100.0

90.5 89.5 100.0

77.8 77.8 0.0

100.0 100.0 100.0

100.0 100.0 100.0

100.0 100.0 0.0

100.0 100.0 0.0

100.0 100.0 0.0

100.0 100.0 0.0

100.0 100.0 0.0

99.7 99.7 0.0

99.4 99.4 0.0

99.0 99.0 0.0

100.0 100.0 0.0

100.0 100.0 0.0

99.9 99.9 0.0

99.8 99.8 0.0

99.5 99.5 0.0

100.0 100.0 0.0

100.0 100.0 0.0

96.4 96.4 0.0

72.7 72.7 0.0

0.0 0.0 0.0

80.0 80.0 0.0

98.1 98.1 0.0

NUMBER OF BANKS AND BRANCHES 137

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, 1977— C O N TIN U E D

BANKS GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

State and type of bank 

or office

All banks Commercial banks and nondeposit trust companies Mutual savings banks Percentage insured1

Total Insured

Noninsured Total

Insured Noninsured

Total Insured

Noninsured

All

banks

of

deposit

Commercial

banks

of

deposit

Mutual

savings

banks

Total

Members F.R. 

System

Nonmembers

F.R.

System

Banks 

of deposit2

Nondeposit

trust

companies3National State

Idaho-all offices...................... 239 239 0 239 239 176 10 53 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............................ 9 9 0 9 9 0 2 7 0 0 0 0 0 100.0 100.0 0.0

Banks operating branches . . 15 15 0 15 15 6 2 7 0 0 0 0 0 100.0 100.0 0.0

Branches................................. 215 215 0 215 215 170 6 39 0 0 0 0 0 100.0 100.0 0.0

Illinois-all offices...................... 1,576 1,541 35 1,576 1,541 573 90 878 28 7 0 0 0 97.8 97.8 0.0

Banks....................................... 1,270 1,235 35 1,270 1,235 423 68 744 28 7 0 0 0 97.2 97.2 0.0

Unit banks............................ 1,001 966 35 1,001 966 298 49 619 28 7 0 0 0 96.5 96.5 0.0

Banks operating branches . . 269 269 0 269 269 125 19 125 0 0 0 0 0 100.0 100.0 0.0

Branches................................. 306 306 0 306 306 150 22 134 0 0 0 0 0 100.0 100.0 0.0

Indiana-all offices.................... 1,410 1,408 2 1,404 1,402 618 87 697 1 1 6 6 0 99.9 99.9 100.0

Banks....................................... 413 411 2 409 407 121 41 245 1 1 4 4 0 99.5 99.5 100.0

Unit banks............................ 147 145 2 145 143 30 20 93 1 1 2 2 0 98.6 98.6 100.0

Banks operating branches . . 266 266 0 264 264 91 21 152 0 0 2 2 0 100.0 100.0 100.0

Branches ................................. 997 997 0 995 995 497 46 452 0 0 2 2 0 100.0 100.0 100.0

Iowa-all offices......................... 1,165 1,158 7 1,165 1,158 256 96 806 6 1 0 0 0 99.4 99.4 0.0

Banks....................................... 656 649 7 656 649 99 46 504 6 1 0 0 0 98.9 98.9 0.0

Unit banks............................ 392 385 7 392 385 49 25 311 6 7 0 0 0 98.2 98.2 0.0

Banks operating branches . . 264 264 0 264 264 50 21 193 0 0 0 0 0 100.0 100.0 0.0

Branches ................................. 509 509 0 509 509 157 50 302 0 0 0 0 0 100.0 100.0 0.0

Kansas-all offices...................... 824 823 1 824 823 261 23 539 1 0 0 0 0 99.9 99.9 0.0

Banks....................................... 616 615 1 616 615 160 18 437 1 0 0 0 0 99.8 99.8 0.0

Unit banks............................ 492 491 7 492 491 112 14 365 1 0 0 0 0 99.8 99.8 0.0

Banks operating branches . . 124 124 0 124 124 48 4 72 O 0 0 0 0 100.0 100.0 0.0

Branches................................. 208 208 0 208 208 101 5 102 0 0 0 0 0 100.0 100.0 0.0

Kentucky-all offices................. 950 949 1 950 949 330 99 520 1 0 0 0 0 99.9 99.9 0.0

Banks....................................... 344 343 1 344 343 82 10 251 1 0 0 0 0 99.7 99.7 0.0

Unit banks............................ 141 140 1 141 140 20 3 117 1 0 0 0 0 99.3 99.3 0.0

Banks operating branches . . 203 203 0 203 203 62 7 134 0 0 0 0 0 100.0 100.0 0.0

Branches................................. 606 606 0 606 606 248 89 269 0 0 0 0 0 100.0 100.0 0.0

FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Louisiana-all offices................. 924 924 0 924 924 323

Banks....................................... 254 254 0 254 254 53

Unit banks............................ 74 74 0 74 74 11

Banks operating branches . . 180 180 0 180 180 42

Branches................................. 670 670 0 670 670 270

Maine-all offices...................... 447 447 0 340 340 135

Banks....................................... 73 73 0 43 43 17

Unit banks............................ 10 10 0 4 4 1

Banks operating branches . . 63 63 0 39 39 16

Branches................................. 374 374 0 297 297 118

Maryland-all offices................. 974 974 0 920 920 377

Banks....................................... 111 111 0 108 108 36

Unit banks............................ 29 29 0 29 29 6

Banks operating branches . . 82 82 0 79 79 30

Branches ................................. 863 863 0 812 812 341

Massachusetts-all offices .... 1,678 1,195 483 1,075 1,071 523

Banks....................................... 314 167 147 148 145 72

Unit banks............................ 52 19 33 18 15 7

Banks operating branches . .

Branches4 ...............................

262

1,364

148

1,028

114

336

130

927

130

926

65

451

Michigan-all offices................. 2,066 2,063 3 2,066 2,063 959

Banks....................................... 362 361 1 362 361 123

Unit banks............................ 82 82 0 82 82 17

Banks operating branches . . 280 279 1 280 279 106

Branches ................................. 1,704 1,702 2 1,704 1,702 836

Minnesota— al! offices................. 831 829 2 830 828 242

Banks....................................... 755 753 2 754 752 204

Unit banks............................ 688 686 2 687 685 174

Banks operating branches . . 67 67 0 67 67 30

Branches ................................. 76 76 0 76 76 38

Mississippi— all office s.............. 789 788 1 789 788 269

Banks....................................... 185 184 1 185 184 36

Unit banks............................ 46 45 1 46 45 5

Banks operating branches . . 139 139 0 139 139 31

Branches................................. 604 604 0 604 604 233

Missouri-all offices.................... 1,091 1,084 7 1,091 1,084 190

Banks....................................... 719 712 7 719 712 113

Unit banks............................ 425 418 7 425 418 59

Banks operating branches . . 294 294 0 294 294 54

Branches ................................. 372 372 0 372 372 11

Montana-all office s................. 181 178 3 181 178 65

Banks....................................... 160 157 3 160 157 56

Unit banks............................ 139 136 3 139 136 47

Banks operating branches . . 21 21 0 21 21 9

Branches ................................. 21 21 0 21 21 9

51 550 0 0 0

7 194 0 0 0

7 62 0 0 0

6 132 0 0 0

44 356 0 0 0

39 166 0 0 107

3 23 0 0 30

0 3 0 0 6

3 20 0 0 24

36 143 0 0 11

103 440 0 0 54

6 66 0 0 3

1 22 0 0 0

5 44 0 0 3

97 374 0 0 51

75 473 3 1 603

7 66 2 1 166

0 8 2 7 34

7 58 0 0 132

68 407 1 0 437

573 531 3 0 0

86 152 1 0 0

77 48 0 0 0

69 104 1 0 0

487 379 2 0 0

33 553 2 0 1

31 517 2 0 1

29 482 2 0 1

2 35 0 0 0

2 36 0 0 0

24 495 0 1 0

6 142 0 1 0

2 38 0 7 0

4 104 0 0 0

18 353 0 0 0

103 791 1 6 0

61 538 1 6 0

31 328 7 6 0

30 210 0 0 0

42 253 0 0 0

49 64 0 3 0

45 56 0 3 0

41 48 0 3 0

4 8 0 0 0

4 8 0 0 0

0 0 100.0 100.0 0.0

0 0 100.0 100.0 0.0

0 0 100.0 100.0 0.0

0 0 100.0 100.0 0.0

0 0 100.0 100.0 0.0

107 0 100.0 100.0 100.0

30 0 100.0 100.0 100.0

6 0 100.0 100.0 100.0

24 0 100.0 100.0 100.0

11 0 100.0 100.0 100.0

54 0 100.0 100.0 100.0

3 0 100.0 100.0 100.0

0 0 100.0 100.0 0.0

3 0 100.0 100.0 100.0

51 0 100.0 100.0 100.0

124 479 71.2 99.6 20.6

22 144 53.2 98.0 13.3

4 30 36.5 83.3 11.8

18 114 56.5 100.0 13.6

102 335 75.4 99.9 23.3

0 0 99.9 99.9 0.0

0 0 99.7 99.7 0.0

0 0 100.0 100.0 0.0

0 0 99.6 99.6 0.0

0 0 99.9 99.9 0.0

1 0 99.8 99.8 100.0

1 0 99.7 99.7 100.0

7 0 99.7 99.7 100.0

0 0 100.0 100.0 0.0

0 0 100.0 100.0 0.0

0 0 99.9 99.9 0.0

0 0 99.5 99.5 0.0

0 0 97.8 97.8 0.0

0 0 100.0 100.0 0.0

0 0 100.0 100.0 0.0

0 0 99.4 99.4 0.0

0 0 99.0 99.0 0.0

0 0 98.4 98.4 0.0

0 0 100.0 100.0 0.0

0 0 100.0 100.0 0.0

0 0 98.3 98.3 0.0

0 0 98.1 98.1 0.0

0 0 97.8 97.8 0.0

0 0 100.0 100.0 0.0

0 0 100.0 100.0 0.0

NUMBER OF BANKS AND BRANCHES 139

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 7 -C O N T IN U E D

BANKS GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

State and type of bank 

or office

All banks Commercial banks and nondeposit trust companies Mutual savings banks Percentage insured1

Total Insured

Noninsured Total

Insured Noninsured

Total Insured

Noninsured

All

banks

of

deposit

Commercial

banks

of

deposit

Mutual

savings

banks

Total

Members F.R. 

System

Nonmembers

F.R.

System

Banks 

of deposit2

Nondeposit

trust

companies3

National State

Nebraska-all offices................. 635 628 7 635 628 242 10 376 0 7 0 0 0 98.9 98.9 0.0

Banks....................................... 458 451 7 458 451 117 8 326 0 7 0 0 0 98.5 98.5 0.0

Unit banks............................ 385 378 7 385 378 82 7 289 0 7 0 0 0 98.2 98.2 0.0

Banks operating branches . . 73 73 0 73 73 35 7 37 0 0 0 0 0 100.0 100.0 0.0

Branches................................. 177 177 0 177 177 125 2 50 0 0 0 0 0 100.0 100.0 0.0

Nevada-all offices.................... 127 127 0 127 127 85 20 22 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............................ 7 1 0 7 7 7 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 ................................. 119 119 0 119 119 81 19 19 0 0 0 0 0 100.0 100.0 0.0

New Hampshire-all offices . . . 269 268 1 205 204 134 5 65 0 1 64 64 0 99.6 99.5 100.0

Banks....................................... 105 104 1 79 78 41 3 34 0 1 26 26 0 99.0 98.7 100.0

Unit banks............................ 34 33 1 25 24 8 2 14 0 7 9 9 0 97.1 96.0 100.0

Banks operating branches . . 71 71 0 54 54 33 1 20 0 0 17 17 0 100.0 100.0 100.0

Branches................................. 164 164 0 126 126 93 2 31 0 0 38 38 0 100.0 100.0 100.0

New Jersey-all offices................. 1,857 1,857 0 1,686 1,686 1,141 233 312 0 0 171 171 0 100.0 100.0 100.0

Banks....................................... 208 208 0 188 188 100 19 69 0 0 20 20 0 100.0 100.0 100.0

Unit banks............................ 32 32 0 29 29 12 0 77 0 0 3 3 0 100.0 100.0 100.0

Banks operating branches . . 176 176 0 159 159 88 19 52 0 0 17 17 0 100.0 100.0 100.0

Branches................................. 1,649 1,649 0 1,498 1,498 1,041 214 243 0 0 151 151 0 100.0 100.0 100.0

New Mexico-all offices........... 300 299 1 300 299 157 21 121 0 1 0 0 0 99.7 99.7 0.0

Banks....................................... 84 83 1 84 83 40 7 36 0 1 0 0 0 98.8 98.8 0.0

Unit banks............................ 20 19 1 20 19 9 2 8 0 7 0 0 0 95.0 95.0 0.0

Banks operating branches . . 64 64 0 64 64 31 5 28 0 0 0 0 0 100.0 100.0 0.0

Branches ................................. 216 216 0 216 216 117 14 85 0 0 0 0 0 100.0 100.0 0.0

New York-all offices................. 4,583 X 4,509 74 3,608 3,534 1,592 1,736 206 69 5 975 975 0 98.4 97.9 100.0

Banks....................................... 410 346 64 295 231 127 55 49 59 5 115 115 0 84.4 78.3 100.0

Unit banks............................ 125 69 56 122 66 35 10 21 51 5 3 3 0 55.2 54.1 100.0

Banks operating branches . . 285 277 8 173 165 92 45 28 8 0 112 112 0 97.2 95.4 100.0

Branches4 ............................... 4,173 4,163 10 3,313 3,303 1,465 1,681 157 10 0 860 860 0 99.8 99.7 100.0

140 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
North Carolina-all offices. . . . 1,744 1,733 11 1,744 1,733 824

Banks....................................... 90 89 1 90 89 28

Unit banks............................ 17 17 0 17 17 4

Banks operating branches . . 73 72 1 73 72 24

Branches ................................. 1,654 1,644 10 1,654 1,644 796

North Dakota-all offices . . . . 283 276 7 283 276 82

Banks....................................... 173 170 3 173 170 43

Unit banks............................ 102 100 2 102 100 20

Banks operating branches . . 71 70 1 71 70 23

Branches ................................. 110 106 4 110 106 39

Ohio-all offices...................... 2,314 2,313 1 2,314 2,313 1,296

Banks....................................... 487 486 1 487 486 218

Unit banks............................ 143 142 7 143 142 43

Banks operating branches . . 344 344 0 344 344 175

Branches................................. 1,827 1,827 0 1,827 1,827 1,078

Oklahoma-all offices................. 658 651 7 658 651 323

Banks....................................... 483 476 7 483 476 193

Unit banks............................ 374 367 7 374 367 128

Banks operating branches . . 109 109 0 109 109 65

Branches ................................. 175 175 0 175 175 130

Oregon-all offices.................... 558 553 5 550 545 332

Banks....................................... 56 54 2 55 53 7

Unit banks............................ 20 19 1 20 19 1

Banks operating branches . .

Branches4 ..............................

36

502

35

499

1

3

35

495

34

492

6

325

Pennsylvania-all offices........... 2,938 2,930 8 2,747 2,739 1,615

Banks....................................... 395 389 6 387 381 233

Unit banks............................ 121 116 5 121 116 79

Banks operating branches . .

Branches4 ...............................

274

2,543

273

2,541

1

2

266

2,360

265

2,358

154

1,382

Rhode Island-all offices........... 316 303 13 242 229 120

Banks....................................... 23 20 3 17 14 5

Unit banks............................ 4 3 1 4 3 0

Banks operating branches . . 19 17 2 13 11 5

Branches ................................. 293 283 10 225 215 115

South Carolina-all offices. . . . 717 717 0 717 717 329

Banks....................................... 88 88 0 88 88 19

Unit banks............................ 23 23 0 23 23 2

Banks operating branches . . 65 65 0 65 65 17

Branches................................. 629 629 0 629 629 310

South Dakota-all offices . . . . 295 294 1 295 294 115

Banks....................................... 158 157 1 158 157 32

Unit banks............................ 108 107 7 108 107 19

Banks operating branches . . 50 50 0 50 50 13

Branches................................. 137 137 0 137 137 83

6 903 11 0 0

2 59 1 0 0

/ 12 0 0 0

1 47 1 0 0

4 844 10 0 0

7 187 6 1 0

4 123 2 1 0

2 78 1 1 0

2 45 1 0 0

3 64 4 0 0

560 457 1 0 0

113 155 1 0 0

39 60 1 0 0

74 95 0 0 0

447 302 0 0 0

16 312 5 2 0

15 268 5 2 0

14 225 5 2 0

1 43 0 0 0

1 44 0 0 0

1 212 5 0 8

1 45 2 0 1

/ 17 7 0 0

0 28 1 0 1

0 167 3 0 1

201 923 6 2 191

14 134 4 2 8

4 33 3 2 0

10 101 1 0 8

187 789 2 0 183

0 109 12 1 74

0 9 2 1 6

0 3 0 1 0

0 6 2 0 6

0 100 10 0 68

16 372 0 0 0

7 62 0 0 0

3 18 0 0 0

4 44 0 0 0

9 310 0 0 0

42 137 0 1 0

28 97 0 1 0

20 68 0 1 0

8 29 0 0 0

14 40 0 0 0

0 0 99.4 99.4 0.0

0 0 98.9 98.9 0.0

0 0 100.0 100.0 0.0

0 0 98.6 98.6 0.0

0 0 99.4 99.4 0.0

0 0 97.5 97.5 0.0

0 0 98.3 98.3 0.0

0 0 98.0 98.0 0.0

0 0 98.6 98.6 0.0

0 0 96.4 96.4 0.0

0 0 100.0 100.0 0.0

0 0 99.8 99.8 0.0

0 0 99.3 99.3 0.0

0 0 100.0 100.0 0.0

0 0 100.0 100.0 0.0

0 0 98.9 98.9 0.0

0 0 98.6 98.6 0.0

0 0 98.1 98.1 0.0

0 0 100.0 100.0 0.0

0 0 100.0 100.0 0.0

8 0 99.1 99.1 100.0

1 0 96.4 96.4 100.0

0 0 95.0 95.0 0.0

1 0 97.2 97.1 100.0

1 0 99.4 99.4 100.0

191 0 99.7 99.7 100.0

8 0 98.5 98.4 100.0

0 0 95.9 95.9 0.0

8 0 99.6 99.6 100.0

183 0 99.9 99.9 100.0

74 0 95.9 94.6 100.0

6 0 87.0 82.4 100.0

0 0 75.0 75.0 0.0

6 0 89.5 84.6 100.0

68 0 96.6 95.6 100.0

0 0 100.0 100.0 0.0

0 0 100.0 100.0 0.0

0 0 100.0 100.0 0.0

0 0 100.0 100.0 0.0

0 0 100.0 100.0 0.0

0 0 99.7 99.7 0.0

0 0 99.4 99.4 0.0

0 0 99.1 99.1 0.0

0 0 100.0 100.0 0.0

0 0 100.0 100.0 0.0

NUMBER OF BANKS AND BRANCHES

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
TABLE 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1977— C O N TIN U E D

BANKS GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

State and type of bank 

or office

All banks Commercial banks and nondeposit trust companies Mutual savings banks Percentage insured1

Total Insured

Noninsured Total

Insured Noninsured

Total Insured

Noninsured

All

banks

of

deposit

Commercial

banks

of

deposit

Mutual

savings

banks

Total

Members F.R. 

System

Nonmembers

F.R.

System

Banks 

of deposit2

Nondeposit

trust

companies3

National State

Tennessee-all offices................. 1,258 1,256 2 1,258 1,256 474 64 718 1 1 0 0 0 99.8 99.8 0.0

Banks....................................... 348 346 2 348 346 73 12 261 1 1 0 0 0 99.4 99.4 0.0

Unit banks............................ 103 101 2 103 101 7 2 92 7 7 0 0 0 98.1 98.1 0.0

Banks operating branches . . 245 245 0 245 245 66 10 169 0 0 0 0 0 100.0 100.0 0.0

Branches................................. 910 910 0 910 910 401 52 457 0 0 0 0 0 100.0 100.0 0.0

Texas-all offices...................... 1,558 1,553 5 1,558 1,553 634 53 866 5 0 0 0 0 99.7 99.7 0.0

Banks....................................... 1,382 1,377 5 1,382 1,377 604 39 734 5 0 0 0 0 99.6 99.6 0.0

Unit banks............................ 1,226 1,221 5 1,226 1,221 579 26 616 5 0 0 0 0 99.6 99.6 0.0

Banks operating branches . . 156 156 0 156 156 25 13 118 0 0 0 0 0 100.0 100.0 0.0

Branches................................. 176 176 0 176 176 30 14 132 0 0 0 0 0 100.0 100.0 0.0

Utah-all offices......................... 302 300 2 302 300 122 87 91 0 2 0 0 0 99.3 99.3 0.0

Banks....................................... 73 71 2 73 71 12 10 49 0 2 0 0 0 97.3 97.3 0.0 .

Unit banks............................ 47 45 2 47 45 7 5 33 0 2 0 0 0 95.7 95.7 0.0

Banks operating branches . . 26 26 0 26 26 5 5 16 0 0 0 0 0 100.0 100.0 0.0

Branches ................................. 229 229 0 229 229 110 77 42 0 0 0 0 0 100.0 100.0 0.0

Vermont-all offices................. 196 195 1 176 175 62 1 112 0 1 20 20 0 99.5 99.4 100.0

Banks....................................... 37 36 1 31 30 14 1 15 0 1 6 6 0 97.3 96.8 100.0

Unit banks............................ 9 8 1 8 7 4 7 2 0 7 7 7 0 88.9 87.5 100.0

Banks operating branches . . 28 28 0 23 23 10 0 13 0 0 5 5 0 100.0 100.0 100.0

Branches................................. 159 159 0 145 145 48 0 97 0 0 14 14 0 100.0 100.0 100.0

Virginia-all offices................... 1,535 1,534 1 1,535 1,534 819 306 409 0 1 0 0 0 99.9 99.9 0.0

Banks....................................... 280 279 1 280 279 103 68 108 0 1 0 0 0 99.6 99.6 0.0

Unit banks............................ 75 74 7 75 74 15 24 35 0 7 0 0 0 98.7 98.7 0.0

Banks operating branches . . 205 205 0 205 205 88 44 73 0 0 0 0 0 100.0 100.0 0.0

Branches................................. 1,255 1,255 0 1,255 1,255 716 238 301 0 0 0 0 0 100.0 100.0 0.0

Washington-all offices.............. 985 975 10 862 852 622 39 191 9 1 123 123 0 99.0 98.8 100.0

Banks....................................... 105 95 10 96 86 21 4 61 9 1 9 9 0 90.5 89.6 100.0

Unit banks............................ 38 28 10 38 28 2 2 24 9 7 0 0 0 73.7 73.7 0.0

Banks operating branches . . 67 67 0 58 58 19 2 37 0 0 9 9 0 100.0 100.0 100.0

Branches4 .............................. 880 880 0 766 766 601 35 130 0 0 114 114 0 100.0 100.0 100.0

142 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
West Virginia-all offices...........

Banks.......................................

Unit banks............................

Banks operating branches

Branches.................................

Wisconsin-all offices.................

Banks.......................................

Unit banks............................

Banks operating branches . .

Branches.................................

Wyoming-all offices.................

Banks.......................................

Unit banks............................

Banks operating branches . .

Branches .................................

Other areas

Pacific Islands—all offices5. . . .

Banks.......................................

Unit banks............................

Canal Zone-all offices..............

Banks.......................................

Unit banks............................

Banks operating branches . .

Branches7 ..............................

Puerto Rico-all offices..............

Banks.......................................

Unit banks............................

Virgin Islands—all offices...........

Banks.......................................

Unit banks............................

Banks operating branches . .

Branches9 ..............................

Banks operating branches

Branches8 .........................

Banks operating branches

Branches®

278 278

227 227

176 176

51 51

51 51

1,058 1,053

631 626

413 408

218 218

427 427

85 85

82 82

79 79

3 3

3 3

27 15

0 01

26

/

14

2 0

0 0

0 0

0 0

2 0

252 228

23 14

11 6

12 8

229 214

30 24

6 0

6 0

0 0

24 24

0 278

0 227

0 176

0 51

0 51

5 1,055

5 628

5 410

0 218

0 427

0 85

0 82

0 79

0 3

0 3

12 27

0 1

0 0

0 1

12 26

2 2

0 0

0 0

0 0

2 2

24 252

9 23

5 11

4 12

15 229

6 30

6 6

6 6

0 0

0 24

278 131

227 106

176 81

51 25

51 25

1,050 278

623 128

405 82

218 46

427 150

85 47

82 46

79 45

3 1

3 1

15 5

1 0

0 0

1 0

14 5

0 0

0 0

0 0

0 0

0 0

228 24

14 1

6 1

8 0

214 23

24 24

0 0

0 0

0 0

24 24

35 112 0 0 0 0 0 100.0 100.0 0.0

29 92 0 0 0 0 0 100.0 100.0 0.0

23 72 0 0 0 0 0 100.0 100.0 0.0

6 20 0 0 0 0 0 100.0 100.0 0.0

6 20 0 0 0 0 0 100.0 100.0 0.0

48 724 0 5 3 3 0 99.5 99.5 100.0

28 467 0 5 3 3 0 99.2 99.2 100.0

19 304 0 5 3 3 0 98.8 98.8 100.0

9 163 0 0 0 0 0 100.0 100.0 0.0

20 257 0 0 0 0 0 100.0 100.0 0.0

15 23 0 0 0 0 0 100.0 100.0 0.0

15 21 0 0 0 0 0 100.0 100.0 0.0

15 19 0 0 0 0 0 100.0 100.0 0.0

0 2 0 0 0 0 0 100.0 100.0 0.0

0 2 0 0 0 0 0 100.0 100.0 0.0

0 10 12 0 0 0 0 55.6 55.6 0.0

0 1 0 0 0 0 0 100.0 100.0 0.0

0 0 0 0 0 0 0 0.0 0.0 0.0

0 1 0 0 0 0 0 100.0 100.0 0.0

0 9 12 0 0 0 0 53.8 53.8 0.0

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 0.0

0 0 2 0 0 0 0 0.0 0.0 0.0

0 204 22 2 0 0 0 90.5 90.5 0.0

0 13 7 2 0 0 0 60.9 60.9 0.0

0 5 3 2 0 0 0 54.5 54.5 0.0

0 8 4 0 0 0 0 66.7 66.7 0.0

0 191 15 0 0 0 0 93.4 93.4 0.0

0 0 6 0 0 0 0 80.0 80.0 0.0

0 0 6 0 0 0 0 0.0 0.0 0.0

0 0 6 0 0 0 0 0.0 0.0 0.0

0 0 0 0 0 0 0 0.0 0.0 0.0

0 0 0 0 0 0 0 100.0 100.0 0.0

NUMBER OF BANKS AND BRANCHES 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),

DECEMBER 31, 1 9 7 7 -C O N T IN U E D 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

1Nondeposit trust companies are excluded in computing these percentages.

2Includes 14 noninsured branches of insured banks: 12 in the Pacific Islands and 2 in the Canal Zone.

3Includes noninsured nondeposit trust companies that are members of the Federal Reserve System.

4California: 1 branch operated by a State nonmember bank in Puerto Rico.

Massachusetts: 1 branch operated by a noninsured bank in New York.

New York: 19 branches operated by 3 State nonmember banks in Puerto Rico.

Oregon: 1 branch operated by a national bank in California.

Pennsylvania: 2 branches operated by a noninsured bank in New York and a national bank in New Jersey. 

Washington: 3 branches operated by a national bank in California.

5United States possessions: American Samoa, Guam, and Midway Islands.

Trust Territories: Caroline Islands, Mariana Islands, and Marshall Islands.

6Pacific Islands: 25 branchesAmerican Samoa: 1 insured branch operated by a State nonmember bank in Hawaii.

Guam: 12 insured branches operated by 2 State nonmember banks in Hawaii, 2 State nonmember 

banks and a national bank in California, and 2 national banks in New York.

Caroline Islands: 4 noninsured branches operated by a national bank in California and a State nonmember bank in Hawaii.

Mariana Islands: 4 noninsured branches operated by a national bank and a nonmember bank in 

California and a State nonmember bank in Hawaii.

Marshall Islands: 3 noninsured branches operated by a national bank in California and a State nonmember bank in Hawaii.

Midway Islands: 1 noninsured branch operated by a State nonmember bank in Hawaii.

7Canal Zone: 2 noninsured branches operated by 2 national banks in New York.

8Puerto Rico: 23 insured branches operated by 2 national banks in New York.

9Virgin Islands: 24 insured branches operated by 2 national banks in New York, a national bank in 

California, and a national bank in Pennsylvania.

144 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 104. NUMBER AND ASSETS OF A L L COMMERCIAL AND M UTUAL SAVINGS BANKS 

IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1977 

BANKS G ROUPED BY CLASS AND ASSET SIZE

Asset size All

banks

Insured commercial banks Noninsured 

banks 

and trust 

companies

Mutual savings banks

Total

Members F.R. System

Nonmembers 

F.R. System

Insured

Noninsured

National State

Number of banks

Less than $5.0 m illio n ...................... 1,376 1,197 155 56 986 179 0 0

$5.0 to $9.9 m illio n ......................... 2,630 2,593 461 139 1,993 30 4 3

$10.0 to $24.9 m illion...................... 4,955 4,911 1,441 334 3,136 21 11 12

$25.0 to $49.9 m illion...................... 3,053 2,980 1,197 206 1,577 11 33 29

$50.0 to $99.9 m illion...................... 1,629 1,485 688 125 672 17 80 47

$100.0 to $299.9 m illio n ................. 999 824 446 83 295 33 96 46

$300.0 to $499.9 m illio n ................. 198 157 91 21 45 9 26 6

$500.0 to $999.9 m illio n ................. 181 124 81 21 22 17 39 1

$1.0 to $4.9 billion............................ 162 120 82 21 17 9 33 0

$5.0 billion or m o re ......................... 22 21 13 8 0 0 1 0

Total banks............................ 15,205 14,412 4,655 1,014 8,743 326 323 144

(In thousancIs of dollars)

Amount of assets

Less than $5.0 m illion...................... 4,485,634 4,217,165 577,116 194,234 3,445,815 268,469 0 0

$5.0 to $9.9 m illio n ......................... 19,510,768 19,258,378 3,486,474 1,058,466 14,713,438 196,618 32,461 23,311

$10.0 to $24.9 m illion...................... 81,729,001 81,024,773 24,304,421 5,638,845 51,081,507 296,169 184,261 223,798

$25.0 to $49.9 m illion...................... 106,087,564 103,274,788 41,940,067 7,152,978 54,181,743 425,849 1,325,163 1,061,764

$50.0 to $99.9 m illion...................... 113,359,839 102,909,383 48,124,355 8,798,703 45,986,325 1,267,160 5,690,457 3,492,839

$100.0 to $299.9 m illio n ................. 162,190,220 132,354,409 71,474,453 13,159,149 47,720,807 5,514,453 16,897,069 7,424,289

$300.0 to $499.9 m illio n ................. 76,896,819 60,466,177 35,527,425 8,130,055 16,808,697 3,757,971 10,336,859 2,335,812

$500.0 to $999.9 m illio n ................. 126,969,939 85,370,106 57,007,316 14,456,326 13,906,464 12,379,452 28,654,591 565,790

$1.0 to $4.9 billion............................ 307,516,802 229,081,899 159,514,864 45,870,318 23,696,717 14,700,178 63,734,725 0

$5.0 billion or m o re ......................... 320,815,571 315,469,828 209,487,450 105,982,378 0 0 5,345,743 0

Total assets............................ 1,319,562,157 1,133,426,9061 651,443,941 210,441,452 271,541,513 38,806,319 132,201,329 15,127,603

1 Does not include assets of branches of U.S. banks in "Other areas."

NUMBER OF BANKS AND BRANCHES 145

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 105. NUMBER, ASSETS, AND DEPOSITS OF A LL COMMERCIAL BANKS1 IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1977 

BANKS GROUPED BY ASSET SIZE AND STATE 

(Amounts in thousands of dollars)

Banks with assets o fState

All

banks

Less 

than 

$5.0 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Total United States and

other areas2

Banks................................. 14,738 1,376 2,623 4,932 2,991 1,502 857 166 141 129 21

Total assets3...................... 1,172,233,225 4,485,634 19,454,996 81,320,942 103,700,637 104,176,543 137,868,862 64,224,148 97,749,558 243,782,077 315,469,828

Total deposits3 ................. 943,622,546 3,832,573 17,408,710 73,553,343 93,336,565 92,770,409 118,813,635 53,894,214 75,465,469 186,210,460 228,337,168

State

Alabama

Banks................................. 310 14 54 140 65 19 10 2 4 2 0

Assets................................. 13,579,232 49,814 422,145 2,306,270 2,205,134 1,289,586 1,531,485 853,812 2,415,783 2,505,203 0

Deposits............................ 11,701,473 41,552 372,100 2,073,643 1,989,957 1,150,536 1,377,791 771,392 1,901,784 2,022,718 0

Alaska

Banks................................. 12 0 0 0 5 2 3 1 1 0 0

Assets................................. 1,769,252 0 0 0 205,048 103,423 503,678 371,703 585,400 0 0

Deposits............................ 1,518,727 0 0 0 179,111 94,493 434,453 317,203 493,467 0 0

Arizona

Banks................................. 25 8 5 3 1 1 2 2 0 3 0

Assets................................. 8,737,781 7,627 39,685 45,878 26,941 60,843 337,866 725,623 0 7,493,318 0

Deposits............................ 7,600,727 16 34,223 42,089 25,475 57,105 296,359 656,818 0 6,488,642 0

Arkansas

Banks................................. 262 17 48 97 61 23 14 1 1 0 0

Assets................................. 8,554,069 46,810 376,868 1,550,383 2,062,928 1,445,817 2,161,262 365,928 544,073 0 0

Deposits............................ 7,447,339 39,389 338,439 1,401,063 1,857,958 1,291,692 1,846,832 261,759 410,207 0 0

California

Banks................................. 235 17 23 60 48 34 32 8 3 5 5

Assets................................. 124,810,166 33,117 156,193 1,065,267 1,640,895 2,364,678 5,391,975 3,271,593 1,979,053 12,188,742 96,718,653

Deposits............................ 101,010,238 14,353 120,035 956,558 1,497,345 2,109,257 4,871,634 2,916,064 1,738,535 10,181,616 76,604,841

Colorado

Banks................................. 375 106 61 114 51 26 13 0 2 2 0

Assets................................. 11,551,269 256,073 446,614 1,799,422 1,756,472 1,851,652 1,728,389 0 1,166,436 2,546,211 0

Deposits............................ 9,874,451 190,723 397,008 1,607,884 1,580,017 1,644,119 1,503,569 0 949,996 2,001,135 0

Connecticut

Banks................................. 72 3 4 26 16 11 4 1 5 2 0

Assets................................. 10,385,315 11,707 29,255 437,994 558,579 814,291 779,324 407,271 3,346,829 4,000,065 0

Deposits............................ 8,989,140 10,286 24,519 386,388 499,450 723,346 693,792 359,894 2,822,019 3,469,446 0

Delaware

Banks................................. 19 1 3 7 2 2 0 2 1 1 0

Assets................................. 3,118,504 4,761 19,968 109,634 68,080 140,896 0 830,468 619,022 1,325,675 0

Deposits............................ 2,427,684 4,194 12,055 98,152 25,878 127,469 0 752,993 524,384 882,559 0

District of Columbia

Banks................................. 16 0 0 3 4 3 1 1 2 2 0

Assets................................. 5,379,190 0 0 39,997 159,955 218,957 114,439 373,050 1,321,889 3,150,903 0

Deposits............................ 4,391,857 0 0 35,273 142,725 198,346 102,014 340,624 1,051,293 2,521,582 0

146 FEDERAL DEPOSIT INSURANCE CORPORATION

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http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Florida

Banks................................. 680 21 70 244 166 111 55 9 3 1 0

Assets................................. 34,016,433 77,930 551,430 3,978,506 5,850,658 8,071,189 8,288,245 3,375,559 1,787,274 2,035,642 0

Deposits............................ 29,722,712 57,831 481,436 3,582,609 5,313,192 7,284,914 7,405,621 2,809,853 1,324,705 1,462,551 0

Georgia

Banks................................. 441 48 92 179 83 22 11 2 1 3 0

Assets................................. 17,970,746 155,591 693,572 2,945,053 2,795,751 1,742,227 1,725,646 715,186 900,493 6,297,227 0

Deposits............................ 14,583,703 137,454 622,460 2,653,502 2,497,786 1,521,087 1,513,786 602,820 622,910 4,411,898 0

Hawaii

Banks................................. 11 1 1 1 1 0 5 0 0 2 0

Assets................................. 3,513,123 361 9,790 10,999 28,150 0 973,208 0 0 2,490,615 0

Deposits............................ 3,116,352 0 0 0 26,279 0 889,649 0 0 2,200,424 0

Idaho

Banks................................. 24 1 4 7 5 2 1 2 0 2 0

Assets................................. 3,776,880 4,467 32,286 108,477 178,814 141,208 162,284 757,409 0 2,391,935 0

Deposits............................ 3,288,468 3,176 29,564 96,449 154,158 128,929 143,050 671,076 0 2,062,066 0

Illinois

Banks................................. 1,270 99 213 422 258 158 101 11 3 3 2

Assets................................. 90,728,122 359,534 1,597,853 6,783,884 9,366,693 11,027,093 15,409,096 4,282,448 2,194,975 9,863,376 29,843,170

Deposits............................ 69,738,986 297,995 1,418,880 6,127,719 8,310,444 9,637,312 12,333,108 3,165,140 1,644,050 7,096,604 19,707,734

Indiana

Banks................................. 409 14 42 127 115 66 35 5 2 3 0

Assets................................. 25,556,252 44,911 326,939 2,170,157 3,980,782 4,673,851 6,017,485 1,816,573 1,248,765 5,276,789 0

Deposits............................ 21,804,327 38,327 294,560 1,982,433 3,614,273 4,240,528 5,311,767 1,547,637 991,479 3,783,323 0

Iowa

Banks................................. 656 44 189 242 127 35 15 3 1 0 0

Assets................................. 16,116,934 162,815 1,405,523 3,908,212 4,202,955 2,403,527 2,212,135 1,071,820 749,947 0 0

Deposits............................ 14,245,251 146,344 1,272,206 3,561,878 3,818,123 2,169,863 1,871,817 859,840 545,180 0 0

Kansas

Banks................................. 616 142 153 195 86 28 9 2 1 0 0

Assets................................. 12,478,768 478,639 1,097,765 3,095,023 2,997,843 1,870,760 1,621,180 653,151 664,407 0 0

Deposits............................ 10,805,294 429,730 995,790 2,792,972 2,700,242 1,606,799 1,247,971 528,548 503,242 0 0

Kentucky

Banks................................. 344 25 54 135 79 29 16 2 2 2 0

Assets................................. 14,105,491 84,958 401,510 2,286,192 2,720,199 1,949,329 2,004,260 732,852 1,247,526 2,678,665 0

Deposits............................ 12,182,544 74,019 362,647 2,076,598 2,476,882 1,755,057 1,823,461 578,769 1,014,468 2,020,643 0

Louisiana

Banks................................. 254 7 23 86 78 30 18 4 7 1 0

Assets................................. 17,214,264 24,418 172,921 1,521,438 2,802,566 2,034,208 3,258,739 1,413,177 4,462,989 1,523,808 0

Deposits............................ 14,724,661 22,003 155,063 1,374,964 2,539,667 1,816,488 2,859,526 1,187,728 3,550,654 1,218,568 0

Maine

Banks................................. 43 0 4 13 13 7 4 2 0 0 0

Assets................................. 2,730,879 0 30,891 242,660 413,442 480,676 891,803 671,407 0 0 0

Deposits............................ 2,391,136 0 27,557 218,718 371,549 425,241 758,381 589,690 0 0 0

Maryland

Banks................................. 108 1 18 31 26 18 7 1 1 5 0

Assets................................. 12,478,108 4,989 134,989 536,417 916,971 1,278,924 981,260 465,795 518,986 7,639,777 0

Deposits............................ 10,618,049 4,251 119,187 486,151 825,781 1,161,349 892,312 391,874 458,872 6,278,272 0

Massachusetts

Banks................................. 148 « » 4 11 39 34 29 19 6 2 3 1

Assets................................. 20,754,160 11,421 89,726 644,333 1,182,360 2,124,893 3,109,949 2,365,993 1,095,039 4,867,283 5,263,163

Deposits............................ 16,352,760 8,845 81,066 571,098 1,031,610 1,905,969 2,748,853 2,047,247 941,488 3,564,393 3,452,191

NUMBER OF BANKS AND BRANCHES 147

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 105. NUMBER, ASSETS, AND DEPOSITS OF A L L COMMERCIAL BANKS1 IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEM BER 31, 1 9 7 7 -C O N T IN U E D 

BANKS GROUPED BY ASSET SIZE AND STATE 

(Amounts in thousands of dollars)

State

All

banks

Banks with assets o fLess 

than 

$5.0 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Michigan

Banks................................. 362 7 33 112 94 55 43 7 4 6 1

Assets................................. 41,789,018 20,027 262,404 1,894,466 3,326,268 3,871,172 7,052,553 2,874,696 3,078,452 12,248,880 7,160,100

Deposits............................ 36,101,334 13,657 231,690 1,719,211 3,034,548 3,525,364 6,419,235 2,570,706 2,719,854 10,400,096 5,466,973

Minnesota

Banks................................. 754 94 231 258 112 44 11 1 0 3 0

Assets................................. 21,762,234 353,451 1,665,053 4,094,757 3,833,431 3,079,165 1,975,461 322,572 0 6,438,344 0

Deposits............................ 18,036,483 321,645 1,525,764 3,729,414 3,470,173 2,794,979 1,657,891 238,686 0 4,297,931 0

Mississippi

Banks................................. 185 8 33 71 41 21 7 2 1 1 0

Assets................................. 8,346,731 30,136 249,287 1,194,228 1,386,006 1,437,699 1,309,937 635,368 946,784 1,157,286 0

Deposits............................ 7,351,258 26,396 219,073 1,089,144 1,256,964 1,296,297 1,175,333 569,462 805,686 912,903 0

Missouri

Banks................................. 719 89 161 251 128 56 27 1 3 3 0

Assets................................. 26,086,631 286,673 1,161,122 4,147,944 4,352,001 3,665,467 4,076,337 301,523 2,541,430 5,554,134 0

Deposits............................ 21,290,704 252,117 1,049,355 3,752,803 3,897,377 3,282,388 3,423,369 261,676 1,865,391 3,506,228 0

Montana

Banks................................. 160 14 39 62 25 14 6 0 0 0 0

Assets................................. 4,007,008 47,593 286,445 992,634 801,985 967,693 910,658 0 0 0 0

Deposits............................ 3,600,215 41,225 258,821 909,941 732,260 865,391 792,577 0 0 0 0

Nebraska

Banks................................. 458 137 121 137 36 20 2 3 2 0 0

Assets................................. 8,577,883 427,112 874,428 2,193,894 1,191,383 1,299,893 221,733 1,141,936 1,227,504 0 0

Deposits............................ 7,396,731 379,542 784,257 1,984,880 1,075,641 1,155,128 200,155 915,557 901,571 0 0

Nevada

Banks................................. 8 0 0 1 0 1 3 1 1 1 0

Assets................................. 2 718,936 0 0 16,263 0 76,394 637,823 342,739 545,649 1,100,068 0

Deposits............................ 2,431,116 0 0 13,496 0 69,998 574,384 294,153 496,950 982,135 0

New Hampshire

Banks................................. 79 5 13 30 20 7 4 0 0 0 0

Assets................................. 2,433,940 14,675 101,264 519,943 696,245 493,892 607,921 0 0 0 0

Deposits............................ 2,163,701 12,854 90,575 473,303 621,954 431,059 533,956 0 0 0 0

New Jersey

Banks................................ 188 1 6 31 59 32 31 10 14 4 0

Assets................................. 29,503,816 940 48,428 522,277 2,132,822 2,389,367 5,227,521 4,028,697 9,780,536 5,373,228 0

Deposits............................ 25,709,684 0 40,288 465,597 1,918,426 2,143,539 4,728,201 3,546,145 8,532,855 4,334,633 0

New Mexico

Banks................................. 84 4 3 27 29 13 6 1 1 0 0

Assets................................. 4,303,607 12,633 23,227 468,639 996,367 861,023 820,833 443,037 677,848 0 0

Deposits............................ 3,831,070 10,066 20,830 424,091 906,921 782,738 740,518 360,318 585,588 0 0

New York

Banks................................. 295 23 14 55 49 38 50 15 26 16 9

Assets................................. 224,288,074 53,794 107,175 951,091 1,732,515 2,835,538 8,268,237 5,945,909 18,672,042 29,371,236 156,350,537

Deposits............................ 154,554,178 37,929 89,242 844,232 1,468,060 2,215,582 6,103,514 4,174,532 10,033,565 20,079,870 109,507,652

148 FEDERAL DEPOSIT INSURANCE CORPORATION

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North Carolina

Banks................................. 9029 26 22

Assets................................. 17,413,991 8,094 61,971 427,748 740,226

Deposits............................ 14,486,462 6,536 52,504 377,501 660,313

North Dakota

Banks................................. 173 17 42 77 22

Assets................................. 4,002,649 61,600 330,917 1,162,240 761,448

Deposits............................ 3,529,881 53,982 300,481 1,056,146 687,035

Ohio

Banks................................. 487 10 62 155 113

Assets................................. 43,289,863 38,125 462,813 2,652,881 3,962,070

Deposits............................ 36,274,525 34,012 417,148 2,393,119 3,525,590

Oklahoma

Banks................................. 483 72 128 149 82

Assets................................. 15,144,982 251,387 927,344 2,462,838 2,816,095

Deposits............................ 13,171,502 217,624 830,012 2,234,069 2,548,800

Oregon

Banks................................. 55

3 13 13 11

Assets................................. 9,921,139 10,661 92,896 230,667 376,511

Deposits............................ 7,917,087 8,514 82,413 209,168 343,094

Pennsylvania

Banks................................. 387

6 34 105 96

Assets................................. 64,916,813 19,523 263,299 1,786,754 3,425,786

Deposits............................ 51,864,517 14,898 227,132 1,614,809 3,083,830

Rhode Island

Banks................................. 17 2 2

4

3

Assets................................. 4,851,014 1,698 13,819 52,850 98,571

Deposits............................ 3,873,212 1,211 10,703 45,345 89,839

South Carolina

Banks................................. 88 11 13 32 17

Assets................................. 5,779,497 41,686 107,996 485,995 589,458

Deposits............................ 4,966,699 36,421 93,281 432,305 521,921

South Dakota

Banks................................. 158 23 56 53 11

Assets................................. 3,825,188 83,608 417,213 817,795 389,931

Deposits............................ 3,442,995 71,506 380,224 739,565 354,772

Tennessee

Banks................................. 348 21 55 124 80

Assets................................. 18,127,883 69,773 396,272 2,020,646 2,706,865

Deposits............................ 15,840,713 60,174 354,528 1,831,074 2,433,739

Texas

Banks................................. 1,382 134 247 469 294

Assets................................. 71,775,439 453,703 1,820,574 7,919,958 10,114,377

Deposits............................ 60,287,033 394,071 1,629,137 7,186,385 9,157,523

Utah

Banks................................. 73 17 16 22 7

Assets................................. 5,006,443 46,466 108,186 371,455 229,388

Deposits............................ 4,374,514 37,226 96,685 336,913 208,824

Vermont

Banks................................. 31

41 10 7

Assets................................. 1,844,086 8,701 5,294 195,673 213,204

Deposits............................ 1,677,857 7,180 4,552 178,662 195,251

13

887,462

776,0879

627,606

565,918

79

5,479,070

4,841,470

38

2,561,379

2,292,4228

592,892

524,622

65

4,334,800

3,904,0490008

491,261

442,4379

578,875

519,610

46

3,167,505

2,867,806

139

9,515,386

8,594,6793

183,650

161,8684

288,035

259,749

10

2,232,608

1,999,7285

544,309

490,262

44

6,995,080

6,178,0109

1,530,320

1,370,3843

498,624

432,283

47

7,453,100

6,665,5803

401,815

358,9892

408,835

365,9624

763,952

680,808

12

1,749,941

1,564,372

68

10,777,449

9,609,2104

744,118

653,2624

810,525

741,354

2

833,675

730,6430009

3,565,935

3,143,6491

436,151

339,2601

304,217

280,149

12

4,487,311

4,005,4330001

365,559

334,1702

773,814

696,5103

1,219,876

1,066,180

16

6,314,984

5,299,6071

359,787

314,9181

322,654

291,109

1

504,036

455,5991

514,529

376,0577

5,670,959

4,644,2802

1,802,853

1,509,5281

527,236

470,0589

5,575,068

4,982,1940003

2,136,314

1,786,7710003

2,083,213

1,694,3507

4,777,590

3,989,8292

1,567,589

1,388,003000

5

11,718,171

9,427,5510008

14,462,930

11,097,2472

2,356,615

1,829,4032

7,287,435

5,566,786

11

23,063,302

17,898,5053

4,282,261

3,367,1251

1,152,393

953,4310004

4,713,792

3,968,4908

20,081,418

14,426,5921

1,395,804

1,176,815000

0000000000000002

14,507,870

9,468,087000000000000000000000

NUMBER OF BANKS AND BRANCHES 149

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Table 105. NUMBER, ASSETS, AND DEPOSITS OF A LL COMMERCIAL BANKS1 IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1977— C O N TIN U E D 

BANKS GROUPED BY ASSET SIZE AND STATE 

(Amounts in thousands of dollars)

Banks with assets o fState

All

banks

Less 

than 

$5.0 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Virginia

Banks................................. 280 13 49 86 68 29 24 5 4 2 0

Assets................................. 18,882,800 46,500 377,910 1,446,863 2,382,093 1,780,743 4,109,281 2,099,353 3,113,896 3,526,161 0

Deposits............................ 16,417,876 39,197 335,246 1,310,256 2,164,562 1,594,900 3,670,420 1,824,313 2,548,340 2,930,642 0

Washington

Banks................................. 96 11 14 32 17 8 7 1 2 3 1

Assets. ............................ 15,942,255 33,802 102,221 491,014 600,698 551,360 1,315,051 419,619 1,478,589 5,323,566 5,626,335

Deposits............................ 12,462,521 26,851 89,010 431,703 542,768 385,287 747,500 363,874 1,286,051 4,459,787 4,129,690

West Virginia

Banks................................. 227 12 29 84 60 27 14 1 0 0 0

Assets................................. 8,129,471 43,211 219,750 1,426,750 2,003,433 1,850,002 2,185,260 401,065 0 0 0

Deposits............................ 6,980,006 34,376 195,041 1,279,643 1,802,378 1,638,247 1,754,454 275,867 0 0 0

Wisconsin

Banks................................. 628 48 110 252 142 49 22 1 3 1 0

Assets................................. 21,453,874 163,500 809,972 4,218,742 4,876,842 3,417,479 3,252,699 343,287 2,070,739 2,300,614 0

Deposits............................ 18,538,624 141,802 736,009 3,853,725 4,396,321 3,074,743 2,806,476 293,686 1,564,784 1,671,078 0

Wyoming

Banks................... .. 82 10 11 30 21 8 2 0 0 0 0

Assets................................. 2,425,007 36,619 78,566 519,028 800,676 580,035 410,083 0 0 0 0

Deposits............................ 2,156,312 31,073 71,979 470,407 722,659 504,339 355,855 0 0 0 0

Other areas

Guam

Banks................................. 2 0 1 0 1 0 0 0 0 0 0

Assets................................. 49,276 0 6,550 0 42,726 0 0 0 0 0 0

Deposits............................ 42,616 0 5,496 0 37,120 0 0 0 0 0 0

Puerto Rico

Banks................................. 23 2 4 3 0 2 7 1 2 2 0

Assets................................. 6,118,532 0 31,269 48,713 0 157,812 1,254,151 419,566 1,607,816 2,599,205 0

Deposits............................ 4,128,734 0 24,013 40,295 0 144,390 977,190 346,642 1,339,432 1,256,772 0

Virgin Islands

Banks................................. 6 3 1 0 0 1 1 0 0 0 0

Assets................................. 190,207 0 5,408 0 0 65,860 118,939 0 0 0 0

Deposits............................ 186,507 0 4,426 0 0 65,424 116,657 0 0 0 0

11ncludes nondeposit trust companies: 8 in Arizona, 2 in Arkansas, 15 in California, 2 in Delaware, 3 in Florida, 3 in Hawaii, 7 in Illinois, 1 in Indiana, 1 in Iowa, 1 in Massachusetts, 1 in Mississippi, 6 in Missouri, 3 in Montana, 

7 in Nebraska, 1 in New Hampshire, 1 in New Mexico, 5 in New York, 2 in Oklahoma, 2 in Pennsylvania, 1 in Rhode Island, 1 in South Dakota, 1 in Tennessee, 2 in Utah, 1 in Vermont, 1 in Virginia, 1 in Washington, and 5 in 

Wisconsin.

2Excludes data for branches in U.S. territories of banks headquartered in the United States, and excludes data for 19 insured branches in New York of 3 insured nonmember banks in Puerto Rico and 1 insured branch in California of an insured nonmember bank in Puerto Rico.

3Does not include assets and deposits of branches of U.S. banks located in "Other areas.”

150 FEDERAL DEPOSIT INSURANCE CORPORATION

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ASSETS AND LIABILITIES OF BANKS

Table 106. Assets and liabilities of all commercial banks in the United States (States and other areas) June 30 

1977

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, 1977

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, 1977, and December 31, 1977 

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, 1972— 1977 

Table 110. Assets and liabilities of insured commercial banks (domestic and foreign offices), United States 

and other areas, 1974— 1977 

Table 111. Assets and liabilities of insured mutual savings banks in the United States (States and other 

areas), December call dates, 1972— 1977 

Table 112. Percentages of assets, liabilities, and equity capital of insured commercial banks operating 

throughout 1977 in the United States (States and other areas), December 31,1977 

Banks grouped by amount of assets

Table 113. Percentages of assets and liabilities of insured mutual savings banks operating throughout 1977 

in the United States (States and other areas), December 31, 1977 

Banks grouped by amount of assets

Table 114. Distribution of insured commercial banks in the United States (States and other areas), December 31, 1977

Banks grouped according to amount

deposits

Commercial banks

Insured banks having resources o f $25 m illio n or m ore are required to rep o rt th e ir assets and lia b ilitie s on the basis o f accrual accounting. Where the 

results w o u ld n o t be sig n ific a n tly d iffe re n t, at the o p tio n o f the bank, tru st 

de partm ent accounts and certain o th e r accounts may be reported on a cash 

basis. A ll banks, regardless o f size o r accounting system, are required to rep o rt unearned incom e on loans in the R eport o f C ond ition , Schedule A 

(loans). A ll banks, regardless o f size or accounting system, are required to rep o rt incom e taxes on a c u rre n t accrual basis. The incom e taxes must be com ­

puted on the a m o u n t o f incom e and expense included in the Report o f Incom e.

o f assets and by ratios o f selected items to assets or

Each insured bank having foreign offices is required to subm it a consolidated re port including these o ffices; however, except fo r table 110 the tables 

on pages 153-174 con tain o n ly the dom estic assets and lia bilities of banks. 

Beginning in 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 (but n o t com m ercial bank 

subsidiaries) are consolidated if they 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 

m ore o f its e q u ity capital accounts, (b) any subsidiary whose gross operating 

revenues am ount to 5 percent o f the parent bank's gross operating revenues, 

or (c) (beginning in Decem ber 1972) any subsidiary whose "In co m e (loss) 

before incom e taxes and securities gains or losses" am ounts to 5 percent or

ASSETS AND LIA B ILIT IE S OF BANKS 151

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m ore o f the "in c o m e (loss) before incom e taxes and securities gains o r losses” 

o f the parent bank. Beginning in 1972, investm ents in subsidiaries no t consolidated in w hich the bank d ire c tly o r in d ire c tly exercises effective con trol 

are re ported on an e q u ity (rathe r 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 co u n t o f banks. Data fo r such branches are not included in 

the figures fo r the States in w h ich the parent banks are located.

From 1969 throug h 1975, all reserves on loans and securities, including 

the reserves fo rb a d debts set up pursuant to Internal Revenue Service rulings, 

were included in "Reserves on loans and secu ritie s" on the lia b ility side of 

the balance sheet. Beginning in 1976, the IRS reserve is divided as follow s:

(a) the "v a lu a tio n " p o rtio n o f the reserve (plus any oth er loan loss reserve) is 

shown on th e asset side o f the face o f th e re p o rt as an offset to gross loans;

(b) the "d e fe rre d incom e ta x " p o rtio n is included in "o th e r I labilities” ; and

(c) the "c o n tin g e n c y " p o rtio n is included in "u n d iv id e d p ro fits ,” or "reserves 

fo r contingencies and oth er capital reserves" (preferably the form er). The 

valua tio n reserve on securities, fo rm e rly shown on the lia bilities side, is in ­

cluded in "reserve fo r contingencies and o th e r capital reserves" beginning in 

1976.

"U nearned incom e on loan s," previously reported in "o th e r lia b ilitie s ," is 

reported separately as an exclusion fro m to ta l loans and total assets beginning 

Decem ber 31, 1976.

Ind ividu al 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 d ire ctly to the 

re duction o f the loan. Such loans are reported gross if, under con tract, the 

paym ents do n o t im m e d ia te ly reduce the un paid balances o f the loan but are 

assigned or pledged to assure repaym ent at m a tu rity .

The category "T ra d in g account secu ritie s" was added to the co n d itio n rep o rt o f com m ercial banks in 1969 to ob ta in this segregation fo r banks tha t 

regularly deal in securities w ith o th e r banks o r w ith the public. Banks occasionally h o ld in g securities purchased fo r possible resale report these under 

"In ve stm e n t secu ritie s."

Assets and lia b ilitie s held in o r adm inistered b y a savings, bond, insurance, 

real estate, foreign, o r any o th e r departm ent o f a bank, except a tru st departm ent, are consolidated w ith the respective assets and lia bilities o f the com ­

m ercial de partm ent. "D ep osits o f individuals, partnerships, and corpora tions” 

include tru s t funds deposited by a tru s t d e p a rtm e n t in a com m ercial or savings de partm ent. O th er assets held in tru s t are n o t included in statements of 

assets and lia b ilitie s.

Demand balances w ith , and dem and deposits due to , banks in the U nited 

States, except private banks and A m erican branches o f foreign banks, exclude 

reciprocal in te rb a n k deposits. (R eciprocal in te rb a n k deposits arise when tw o 

banks m a in tain deposit accounts w ith each o th er.)

In 1976, the caption "C ap ita l notes and de bentures" was changed to 

"sub ord in ated notes and debentures," to be shown in the lia b ilitie s section 

o f the R eport o f C o n d itio n . A cco rd in g ly, "ca p ita l acco unts" became the 

"e q u ity c a p ita l" section.

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 n o t as detailed as those sub m itted by insured banks.

A d d itio n a l data on assets and lia b ilitie s o f all banks as o f June 30, 1977 

and December 31, 1977, are shown in the C orp ora tio n's semiannual pu blicatio n Assets and Liabilities—Commercial and M utual Savings Banks.

Mutual savings banks

The Reports o f C o n d itio n and Incom e fo r m utual savings banks were revised in m ajor respects in 1971. A m ong the changes was a re quirem ent fo r 

consolidating the accounts o f branches and subsidiaries w ith the parent bank, 

on a com parable basis w ith com m ercial bank reports (see above). A 1972 revision broadened the crite ria fo r consolidated re p o rtin g ; it also provided fo r 

the reporting o f investm ents in unconsolidated subsidiaries on an equity 

basis, com parable w ith com m ercial bank reportin g.

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 re portin g o f specific item s. Loans are 

reported in som ewhat 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 b y 1- to 4 -fa m ily properties and by 

m u ltifa m ily (5 or m ore) properties.

A n o th e r im p o rta n t change shifted various reserve accounts w hich had 

been carried as deductions against assets (about $200 m illio n in 1971) into 

the surplus accounts.

Beginning June 30, 1972, m utual savings banks w ith to ta l resources of 

$25 m illio n or m ore are required to prepare Reports o f C o n d itio n on the 

basis o f accrual accounting. A ll banks, regardless o f size, are required to rep o rt 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 b ilitie s o f U.S. banks has been published sem iannually by the 

C orp ora tio n in Assets and Liabilities—Commercial and M utual Savings Banks.

On December 31, 1977, the consolidated assets o f insured com m ercial banks 

totaled $1,339.4 b illio n , com pared to dom estic assets o f $1,137.7 b illio n 

(see table 107). The 148 insured com m ercial banks th a t reported foreign 

operations held consolidated assets o f $738.2 b illio n . (Beginning w ith June 

30, 1977, foreign office assets and lia bilities item ized by State are published 

in Assets and Liabilities—Commercial and M utual Savings BanksJ

Sources of data

Insured banks: see p. 176; noninsured banks: State banking a u thorities 

and reports fro m individual banks.

152 FEDERAL DEPOSIT INSURANCE C O R P O R A T IO N

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Federal Reserve Bank of St. Louis
Table 106. ASSETS AND LIA B ILITIE S OF A L L COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE 30, 1977 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK 

(Amounts in thousands of dollars)

Asset, liability, or equity capital item Total

Total

Members of 

Federal Reserve System

Total

Not 

members 

of F.R. 

System

Noninsured banks

Total

Banks

of

deposit1

Nondeposit

trust

companies2

Total assets 1,084,679,218

Cash and due from banks-total.................................

Cash items in process of collection...................... ..

Demand balances with banks in the United States 

Other balances with banks in the United States. .

Including interest bearing balances......................

Balances with banks in foreign countries................

Including interest bearing balances................... ..

Currency and c o in ...............................................

Reserve with Federal Reserve Bank.........................

140,148,390

53,494,803

36,421,862

6,463,778

5,630,803

5,417,309

4,266,645

12,812,545

25,538,093

Securities-total.............................................................................

Investment securities-total.......................................................

U.S. Treasury securities3 .......................................................

Maturity-1 year and less.......................................................

Maturity-Over 1 through 5 years.........................................

Maturity-Over 5 through 10 years......................................

Maturity-Over 10 years.......................................................

Obligations of other U.S. Government agencies and corps.3 .

Maturity-1 year and less.......................................................

Maturity-Over 1 through 5 years.........................................

Maturity-Over 5 through 10 years.......................................

Maturity-Over 10 years.......................................................

Obligations of States and political subdivisions3 ...................

Maturity-1 year and less.....................................................

Maturity-Ovar 1 through 5 years.........................................

Maturity-Over 5 through 10 years......................................

Maturity-Over 10 years.......................................................

Other bonds, notes, and debentures3.......................................

Maturity-1 year and less.....................................................

Maturity-Over 1 through 5 years.........................................

Maturity-Over 5 through 10 years......................................

Maturity-Over 10 years.......................................................

Corporate stock...........................................................................

Trading account securities..........................................................

Federal funds sold and securities purchased under agreements to 

resell-to tal.............................................................................

With domestic commercial banks...............................................

With brokers and dealers in securities and fu n d s ......................

With others .................................................................................

257,550,962

248,877,182

98,383,404

6,188,498

1,618,926

7,054,854

44,606,528

37,695,236

4,349,128

2,562,164

1,048,910,610 799,455,048 603,999,516 195,455,532 249,455,562 35,768,608 35,254,563

131,686,565

53,344,906

30,674,836

5,162,407

4,946,356

4,173,992

3,614,473

12,793,045

25,537,379

110,910,005

51,364,527

18,165,898

3,013,869

2,910,104

3,466,762

2,938,079

9,361,570

25,537,379

74,991,307

31,072,671

12,266,045

2,642,124

2,569,928

1,967,698

1,670,280

7,248,188

19,794,581

35,918,698

20,291,856

5,899,853

371,745

340,176

1,499,064

1,267,799

2,113,382

5,742,798

20,776,560

1,980,379

12,508,938

2,148,538

2,036,252

707,230

676,394

3,431,475

0

8,461,825

149,897

5,747,026

1,301,371

684,447

1,243,317

652,172

19,500

714

8,426,058

149,214

5,716,914

1,297,189

682,099

1,243,317

652,172

19,424

0

254,643,100

246,013,917

97,186,037

35,148,518

51,942,413

9,322,216

772,890

34,386,360

9,827,271

15,249,204

4,082,594

5,227^91

108,599,217

18,396,455

30,992,349

32,176,079

27,034,334

5,842,303

966,355

2,425,341

1,192,641

1,257,966

1,580,432

7,048,751

179,620,704

171,372,722

68,976,021

24,780,822

37,699,507

5,958,692

537,000

20.940.352 

5,637,456

9J31262

2,380,638

3.690.996

77.571.353 

14,504,285

20,804,320

21,818,545

20,444,203

3.884.996 

596,573

1,703,604

779,293

805,526

1,332,373

6,915,609

137,167,408

131,853,698

51,262,750

19,038279

27,391,633

4,397,624

435,214

16,769,737

4,504,814

7,348,233

1,827,671

3,089,019

60,749,389

11,546,747

16,491,676

17,320,386

15,390,580

3,071,822

463,689

1,359,641

617,203

631289

992,903

4,320,807

42,453,296

39,519,024

17,713,271

5,742,543

10,307,874

1,561,068

101,786

4,170,615

1,132,642

1,883,029

552,967

601,977

16,821,964

2,957,538

4,312,644

4,498,159

5,053,623

813,174

132,884

343,963

162,090

174,237

339,470

2,594,802

75,022,396

74,641,195

28,210,016

10,367,696

14,242,906

3,363,524

235,890

13,446,008

4,189,815

6,017,942

1,701,956

1,536,295

31,027,864

3,892,170

10,188,029

10,357,534

6,590,131

1,957,307

369,782

721,737

413,348

452,440

248,059

133,142

2,907,862

2,863,265

1,197,367

579,182

740,521

38,494

6,103

2,784,001

2,768,825

1,163,301

576,143

707,191

322,190

9,100

6,076

40,845,487

34,121,696

4,310,828

2,412,963

33,044,321

26,506,717

4,218,987

2,318,617

27,525,292

22,317,779

3,375,547

1,831,966

5,519,029

4,188,938

843,440

486,651

7,801,166

7,614,979

91,841

94,346

3,761,041

3,573,540

38,300

149,201

3,656,079

3,468,578

38,300

149,201

514,045

35,767

683

30,112

4,182

2,348

0

0

76

714

123,861

94,440

34,066

3,039

33,330

24,005

29,394

27

104.962

104.962 

0 

0

ASSETS AND LIABILITIES OF BANKS 153

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 106. ASSETS A N D L IA B IL IT IE S OF A L L C O M M E R C IA L BANKS IN TH E U N IT E D STATES (STATES A N D O THER A R E A S ),

JUNE 30, 1977— 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, liability, or equity capital item Total

Total

Members of 

Federal Reserve System

Not 

members 

of F.R. 

System

Total

Banks

of

deposit1

Nondeposit

trust

National State companies2Total

Loans, n e t...................................................................................... 563,069,738 545,079,124 408,847,631 315,166,535 93,681,096 136,231,493 17,990,614 17,948,478 42,136

Plus: Reserve for possible loan losses.......................................... 6,636,935 6,483,970 5,119,112 3,758,720 1,360,392 1,364,858 152,965 152,455 510

Loans, to ta l................................................................................... 569,706,673 551,563,094 413,966,743 318,925,255 95,041,488 137,596,351 18,143,579 18,100,933 42,646

Plus: Unearned income on loans............................................... 13,716,438 13,659,484 9,208,222 7,624,116 1,584,106 4,451,262 56,954 56,954 0

Loans, gross................................................................................... 583,423,111 565,222,578 423,174,965 326,549,371 96,625,594 142,047,613 18,200,533 18,157,887 42,646

Real estate loans-total................................................................ 163,007,362 162,658,332 112,485,392 90,173,343 22,312,049 50,172,940 349,030 344,128 4,902

Construction and land development....................................... 19,002,395 18,955,556 74,549,071 11,317,741 3,231,330 4,406,485 46,839 46,839 0

Secured by farmland................................................................

Secured by 7- to 4-family residential properties:

7,360,487 7,341,435 3,129,299 2,551,260 578,039 4,212,136 19,052 18,425 627

Insured by FHA and guaranteed by V A .............................. 8,056,445 8,005,588 6,765,734 5,635,922 1,129,812 1,239,854 50,857 50,804 53

Conventional........................................................................

Secured by multi-family (5 or more) residential properties:

79,743,449 79,588,362 54,851,039 44,774,198 10,076,841 24,737,323 155,087 151,540 3,547

Insured by FHA..................................................................... 370,316 369,553 282,111 160,029 122,082 87,442 763 763 0

Conventional........................................................................ 4,185,986 4,180,549 2,990,687 2,191,785 798,902 1,189,862 5,437 5,047 390

Secured by non farm nonresidential properties...................... 44,288284 44,217,289 29,917,451 23,542,408 6,375,043 14,299,838 70,995 70,710 285

Loans to financial institutions-total.......................................... 40,421,005 33,532,945 31,517,200 21,496,051 10,021,149 2,015,745 6,888,060 6,888,060 0

To real estate investment trusts and mortgage companies . . . 9,307,069 9,293,224 8,892,390 6,327,219 2,565,171 400,834 13,845 13,845 0

To domestic commercial banks............................................... 4,684,617 2,475,639 1,913,912 1,436,817 477,095 561,727 2,208,978 2,208,978 0

To banks in foreign countries.................................................. 10,384,883 6,166,289 6,013,716 3,620,939 2,392,777 152,573 4,218,594 4,218,594 0

To other depository institutions............................................ 1,260,259 1,243,654 1,126,339 904,032 222,307 117,315 16,605 16,605 0

To other financial institutions.................................................. 14,784,177 14,354,139 13,570,8*3 9,207,044 4,363,799 783,296 430,038 430,038 0

Loans for purchasing or carrying securities-total...................... 14,579,215 14,315,911 13,367,955 8,011,991 5,355,964 947,956 263,304 262,464 840

To brokers and dealers in securities.......................................... 10,436,139 10,180,167 9,942,620 5,263,228 4,679,392 237,547 255,972 255,132 840

Other loans for purchasing or carrying securities................... 4,143,076 4,135,744 3,425,335 2,748,763 676,572 710,409 7,332 7,332 0

Loans to farmers........................................................................ 25,776,937 25,632,829 14,156,547 12,342,028 1,814,519 11,476,282 144,108 144,108 0

Commercial and industrial loan s............................................... 194,653,208 185,329,613 150,156,296 113,245,951 36,910,345 35,173,317 9,323,595 9,313,337 10,258

Loans to individuals-total.......................................................... 128,729,693 128,548,841 88,507,907 71,632,022 16,875,885 40,040,934 180,852 180,748 104

To purchase private passenger automobiles on instalment basis.

Credit cards and related plans:

44,992,611 44,971,525 28,857,677 23,858,878 4,998,799 16,113,848 21,086 21,020 66

Retail (charge account) credit card plans.............................. 11,653,373 11,653,110 10,364,943 8,411,134 1,953,809 1288,167 263 263 0

Check credit and revolving credit plans.................................

To purchase other retail consumer goods on instalment basis:

3,380,446 3,373,193 2,768,496 1,871,078 897,418 604,697 7253 7,253 0

Mobile homes (excluding travel trailers)............................... 8,838,223 8,837,186 6,224,972 5,412,829 812,143 2,612,214 1,037 1,030 7

Other retail consumer goods.................................................. 7,822,241 7,816,252 5,083,893 4,287,046 796,847 2,732,359 5,989 5,987 2

Instalment loans to repair and modernize residential property .

Other instalment loans for household, family, and other

6,690,521 6,685,665 4,472,678 3,604,873 867,805 2^12,987 4,856 4,848 8

personal expenditures..........................................................

Single-payment loans for household, family, and other

19,044,942 18,957,895 12,378,898 9,896,895 2,482,003 6,578,997 87,047 87,046 1

personal expenditures.......................................................... 26,307,336 26,254,015 18,356,350 14,289,289 4,067,061 7,897,665 53,321 53,301 20

All other loans.............................................................................. 16,255,691 15,204,107 12,983,668 9,647,985 3,335,683 2,220,439 1,051,584 1,025,042 26,542

Total loans and securities..................................................... 820,620,700 799,722,224 588,468,335 452,333,943 136,134,392 211,253,889 20,898,476 20,732,479 165,997

154 FEDERAL DEPOSIT INSURANCE C O R PO R ATIO N

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Federal Reserve Bank of St. Louis
Direct lease financing.....................................................................

Bank premises, furniture and fixtures, and other assets

representing bank premises.......................................................

Real estate owned other than bank premises..............................

Investments in unconsolidated subsidiaries and associated

companies...................................................................................

Customers' liability on acceptances outstanding.........................

Other assets...................................................................................

Total liabilities and equity capital.......................................................

Business and personal deposits-total...............................................

Individuals, partnerships, and corporations-demand...................

Individuals, partnerships, and corporations-savings...................

Individuals and nonprofit organizations-savings......................

Corporations and other profit organizations-savings................

Individuals, partnerships, and corporations-time........................

Deposits accumulated for payment of personal loans-time . . . . 

Certified and officers' checks, travelers' checks, letters of 

credit-demand...........................................................................

Government deposits-total.............................................................

United States Government-demand............................................

United States Government-savings...............................................

United States Government-time.................................................

States and political subdivisions-demand...................................

States and political subdivisions-savings......................................

States and political subdivisions-time.........................................

Domestic interbank deposits-total..................................................

Commercial banks in the United States-demand........................

Commercial banks in the United States-savings........................

Commercial banks in the United States-time..............................

Mutual savings banks in the United States-demand...................

Mutual savings banks in the United States-savings......................

Mutual savings banks in the United States-tim e........................

Foreign government and bank deposits-total.................................

Foreign governments, central banks— demand..............................

Foreign governments, central banks-savings..............................

Foreign governments, central banks-time....................................

Banks in foreign countries-demand............................................

Banks in foreign countries-savings...............................................

Banks in foreign countries— tim e ..................................................

Total deposits...........................................................................

Demand................................................................................

Savings...................................................................................

Time......................................................................................

Miscellaneous liabilities-total..........................................................

Federal funds purchased and securities sold under agreements

to repurchase-total..................................................................

With domestic and commercial banks......................................

With brokers and dealers in securities and funds......................

With others................................................................................

Other liabilities for borrowed money............................................

Mortgage indebtedness..................................................................

Acceptances outstanding................................................................

Other liabilities.............................................................................

5,173,167 5,173,117 4,849,417 3,952,410 897,007 323,700 50 50 0

17,423,956 17,336,894 12,636,824 10,249,565 2,387,259 4,700,070 87,062 71,229 15,833

3,082,167 3,058,817 2,507,160 1,850,836 656,324 551,657 23,350 8,185 15,165

2,677,691 2,594,050 2,557,322 1,932,726 624,596 36,728 83,641 81,867 1,774

12,760,340 1 1,886,441 11,458,371 7,596,300 3,862,071 428,070 873,899 873,899 0

38,186,279 36,607,015 33,023,293 23,567,137 9,456,156 3,583,722 1,579,264 1,404,717 174,547

1,084,679,218 1,048,910,610 799,455,048 603,999,516 195,455,532 249,455,562 35,768,608 35,254,563 514,045

727,545,475 717,214,067 521,371,366 405,073,043 116,298,323 195,842,701 10,331,408 10,307,148 24,260

254,179,813 252,746,638 189,720,626 144,187,866 45,532,760 63,026,012 1,433,175 1,415,665 17,510

211,665,107 211,011,986 148,853,371 1 18,531,532 30,321,839 62,158,615 653,121 651,203 1,918

201,560,497 200,929^45 141,555,072 112,871,643 28,683,429 59,374,173 631252 629,334 1,918

10,104,610 10,082,741 7,298,299 5,659,889 1,638,410 2,784,442 21,869 21,869 0

245,921,323 239,452,303 171,559,744 135,098,791 36,460,953 67,892,559 6,469,020 6,464,188 4,832

133,913 133,913 108,187 79,760 28,427 25,726 0 0 0

15,645,319 13,869,227 11,129,438 7,175,094 3,954,344 2,739,789 1,776,092 1,776,092 0

73,969,880 73,466,357 50,623,022 40,873,367 9,749,655 22,843,335 503,523 503,339 184

2,850,339 2,832,289 2,007,830 1,636,230 371,600 824,459 18,050 17,871 179

61,313 61,266 52,468 46,027 6,441 8,798 47 47 0

759,514 759,046 601,677 510,488 91,189 157,369 468 468 0

18,116,198 18,027,079 12,375,349 10,012,579 2,362,770 5,651,730 89,119 89,114 5

5,360,554 5,347,954 3,733,246 2,744,156 989,090 1,614,708 12,600 12,600 0

46,821,962 46,438,723 31,852,452 25,923,887 5,928,565 14,586,271 383,239 383,239 0

46,143,709 44,704,852 42,367,855 23,806,761 18,561,094 2,336,997 1,438,857 1,433,048 5,809

37,615,937 36,980,926 35,764,271 19,523,423 16,240,848 1,216,655 635,011 629,202 5,809

21,689 20,476 15,757 9,828 5,929 4,719 1,213 1,213 0

6,519,045 5,910,597 4,996,333 3,434,068 1,562,265 914,264 608,448 608,448 0

1,621,407 1,443,492 1,257,383 644,736 612,647 186,109 177,915 177,915 0

2,550 2,550 1,625 1,475 150 925 0 0 0

363,081 346,811 332,486 193,231 139,255 14,325 16,270 16,270 0

21,576,422 18,196,502 17,509,285 9,646,444 7,862,841 687,217 3,379,920 3,377,488 2,432

1,908,836 1,453,922 1,381,890 660,527 721,363 72,032 454,914 452,482 2,432

43,526 43,438 41,973 15,737 26,236 1,465 88 88 0

9,591,355 7,967,947 7,635,414 4,661,415 2,973,999 332,533 1,623,408 1,623,408 0

7,318,285 6,616,934 6,470,970 2,756,385 3,714,585 145,964 701,351 701,351 0

408 408 283 16 267 125 0 0 0

2,714,012 2,113,853 1,978,755 1,552,364 426,391 135,098 600,159 600,159 0

869,235,486 853,581,778 631,871,528 479,399,615 152,471,913 221,710,250 15,653,708 15,621,023 32,685

339,256,134 333,970,507 260,107,757 186,596,840 73,510,917 73,862,750 5,285,627 5,259,692 25,935

217,155,147 216,488,078 152,698,723 121,348,771 31,349,952 63,789,355 667,069 665,151 1,918

312,824,205 303,123,193 219,065,048 171,454,004 47,611,044 84,058,145 9,701,012 9,696,180 4,832

133,336,233 114,291,605 106,771,016 78,637,778 28,133,238 7,520,589 19,044,628 18,808,893 235,735

79,376,020 75,604,360 71,575,658 53,756,956 17,818,702 4,028,702 3,771,660 3,770,660 1,000

42,568,806 39,706,000 37,889,905 30,051,814 7,838,091 1,816,095 2,862,806 2,861,806 1,000

9,506,088 9,481,555 8,979214 6,643,030 2,336,184 502,341 24,533 24,533 0

27,301,126 26,416,805 24,706,539 17,062,112 7,644,427 1,710266 884,321 884,321 0

9,620,229 5,966,023 5,658,047 3,758,717 1,899,330 307,976 3,654,206 3,627,033 27,173

831,500 828,734 572,833 447,901 124,932 255,901 2,766 1,236 1,530

13,418,525 12,540,148 12,111,977 7,685,225 4,426,752 428,171 878,377 878,377 0

30,089,959 19,352,340 16,852,501 12,988,979 3,863,522 2,499,839 10,737,619 10,531,587 206,032

ASSETS AND LIA B ILITIE S OF BANKS 155

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 106. ASSETS A N D L IA B IL IT IE S OF A L L C O M M E R C IA L BANKS IN TH E U N ITE D STATES (STATES A N D O TH ER A R E A S ),

JUNE 30, 1977— 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, liability, or equity capital item Total

Total

Members of 

Federal Reserve System

Not 

members 

of F.R. 

System

Total

Banks

of

deposit1

Nondeposit

trust

Total National State companies2

Total liabilities (excluding subordinated notes and

debentures)........................................................................... 1,002,571,719 967,873,383 738,642,544 558,037,393 180,605,151 229,230,839 34,698,336 34,429,916 268,420

Subordinated notes and debentures.................................................. 5,434,531 5,357,474 4,224,556 2,815,397 1,409,159 1,132,918 77,057 75,983 1,074

Equity capital-total........................................................................ 76,672,968 75,679,753 56,587,948 43,146,726 13,441,222 19,091,805 993,215 748,664 244,551

Preferred stock-par value............................................................. 77,227 71,113 28,418 21,559 6,859 42,695 6,114 5,712 402

Preferred stock-shares outstanding (in thousands)...................... 6,758 6,690 3,476 388 3,088 3,214 68 57 11

Common stock-par value............................................................. 16,806,986 16,703,120 12,087,106 9,295,127 2,791,979 4,616,014 103,866 52,433 51,433

Common stock-shares authorized (in thousands)...................... 2,257,271 2,156,237 1,310,944 1,081,186 229,758 845,293 101,034 57,558 43,476

Common stock-shares outstanding (in thousands)................... .. 1,782,800 1,770,099 1,212,049 998,516 213,533 558,050 12,701 10,071 2,630

Surplus........................................................................................... 30,386,256 29,809,422 21,797,335 16,257,521 5,539,814 8,012,087 576,834 522,826 54,008

Undivided profits........................................................................... 27,592,079 27,352,104 21,488,483 16,586,71 1 4,901,772 5,863,621 239,975 113,961 126,014

Reserve for contingencies and other capital reserves................... 1,810,420 1,743,994 1,186,606 985,808 200,798 557,388 66,426 53,732 12,694

PERCENTAGES

Of total assets:

Cash and due from banks............................................................. 12.9 12.6 13.9 12.4 18.4 8.3 23.7 23.9 7.0

U.S. Treasury securities and obligations of other 

U.S. Government agencies and corporations.............................. 12.3 12.5 11.2 11.3 11.2 16.7 5.0 4.9 7.2

Other securities.............................................................................. 11.5 11.7 11.2 11.4 10.5 13.4 3.2 3.0 16.9

Loans (including federal funds sold and securities purchased 

under agreements to resell)....................................................... 56.0 55.9 55.3 56.7 50.8 57.7 60.8 61.3 28.6

Other assets................................................................................... 7.3 7.3 8.4 8.1 9.1 3.9 7.4 6.9 40.3

Total equity capital4 ..................................................................... 7.1 7.2 7.1 7.1 6.9 7.7 2.85 2.15 47.6

Of total assets other than cash and U.S. Teasury securities:

Total equity capital4 ..................................................................... 9.1 9.2 9.1 9.0 9.5 9.5 3.85 2.95 55.1

Number of banks................................................................................ 14,746 14,441 5,722 4,703 1,019 8,719 305 222 83

11ncludes asset and liability figures for branches of foreign banks (tabulated as banks) licensed to do a deposit business. Capital is not allocated to these branches by the parent banks.

2Amounts shown as deposits are special accounts and uninvested trust funds, with the latter classified as demand deposits of individuals, partnerships, and corporations.

3Because noninsured commercial banks are not required to submit Schedule B, "Securities-Distribution by Remaining Maturity," these distributions are not available for noninsured banks and for "All commercial banks."

40nly asset and liability data are included for branches located in "other areas" of banks headquartered in one of the 50 States; because no capital is allocated to these branches, they are excluded from the computation of 

ratios of equity capital to assets.

5Data for branches of foreign banks referred to in footnote 1 have been excluded in computing this ratio for noninsured banks of deposit and in "total" columns.

Note: Further information on the reports of assets and liabilities of banks may be found on pp. 151-152.

156 FEDERAL DEPOSIT INSURANCE C O R PO R ATIO N

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 107. ASSETS A N D L IA B IL IT IE S OF A L L C O M M E R C IA L B AN KS IN THE U N IT E D STATES (STATES A N D OTHER A R E A S )

DECEM BER 31, 1977 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK 

(Amounts in thousands of dollars)

Asset, liability, or equity capital item

Insured banks

Total

Members of 

Federal Reserve System

State

Not 

members 

of F.R. 

System

Noninsured banks

Banks

of

deposit1

Nondeposit

trust

companies2

Total assets

Cash and due from banks-total.................................

Cash items in process of collection.........................

Demand balances with banks in the United States . 

Other balances with banks in the United States. . .

Including interest bearing balances......................

Balances with banks in foreign countries................

Including interest bearing balances......................

Currency and c o in ..................................................

Reserve with Federal Reserve Bank.........................

1,176,607,887

169,974,725

66,625,825

44,880,798

7,286,398

6,211,183

7,825,298

6,502,077

14,016,009

29,340,397

Securities-total..........................................................................

Investment securities— to ta l....................................................

U.S. Treasury securities3 .....................................................

Maturity- 1 year and less.....................................................

Maturity- Over 1 through 5 years.......................................

Maturity-Over 5 through 10 years....................................

Maturity-Over 10 years....................................................

Obligations of other U.S. Government agencies and corps:3.

Maturity-1 year and less.....................................................

Maturity- Over 1 through 5 years.......................................

Maturity-Over 5 through 10 years...........................

Maturity-Over 10 years....................................................

Obligations of States and political subdivisions3 .................

Maturity-1 year and less...................................................

Maturity-Over 1 through 5 years.......................................

Maturity-Over 5 through 10 years....................................

Maturity-Over 10 years.....................................................

Other bonds, notes, and debentures3....................................

Maturity-1 year and less...................................................

Maturity-Over 1 through 5 years.......................................

Maturity-Over 5 through 10 years....................................

Maturity-Over 10 years .....................................................

Corporate stock........................................................................

Trading account securities.......................................................

Federal funds sold and securities purchased under agreements 

to resell-total........................................................................

With domestic commercial banks............................................

With brokers and dealers in securities and funds...................

With others..............................................................................

260,997,185

252,944,370

97,044,604

36,117,116

113,659,779

6,122,871

1,648,059

6,404,756

54,241,823

45,315,639

5,498,720

3,427,464

1,137,686,982 865,757,704 655,316,252 210,441,452 271,929,278 38,920,905 38,335,759

160,352,697

66,447,697

39,240,406

5,915,123

5,362,957

5,410,379

4,551,868

13,998,824

29,340,268

134,703,102

63,972,198

23,089,101

3,326,223

2,878,894

4,575,824

3,823,352

10,399,488

29,340,268

92,397,806

41,618,707

14,894,956

2,588,556

2,507,213

2,620,317

2,150,504

8,089,567

22,585,703

42,305,296

22,353,491

8,194,145

737,667

371,681

1,955,507

1,672,848

2,309,921

6,754,565

25,649,595

2,475,499

16,151,305

2,588,900

2,484,063

834,555

728,516

3,599,336

0

9,622,028

178,128

5,640,392

1,371,275

848,226

2,414,919

1,950,209

17,185

129

9,584,395

178,128

5,606,803

1,367,540

847,700

2,414,919

1,950,209

17,005

0

258,408,158

250,392,895 

95,961,373 

36,481,917

49,411,277

8,860,522

1,207,657

35,812,115 

9,318,756

14,905,716

4,878,770

6,708,873

112,900,214 

18,429,872

31,617,986

33,222,146

29,630,210

5,719,193 

923,827

2,437,129

1,087,293

1,270,944

1,611,533

6,403,730

180,808,621

173,175,950

66,682,996

25,164,420

35,203,090

5,460,945

854,541

22,433,924

5,639,602

8,977,074

2,890,692

4,926,556

80,282,128

14,525,161

21,028,127

22,217,732

22,511,108

3,776,902

514,259

1,722,824

716,209

823,610

1,366,337

6,266,334

138,537,386

133,713,186 

50,037,441 

19,700,310

25,403,555

4,151,729

781,847

17,832,093 

4,400,114

7,101,125

2,277,007

4,053,847

62,870,206 

11,365,861

17,000,724

18,185,623

16,317,998

2,973,446 

369,978

1,337,457

594,960

671,051

1,010,201

3,813,999

42,271,235

39,462,764

16,645,555

5,464,110

9,799,535

1,309,216

72,694

4,601,831

1,239,488

1,875,949

613,685

872,709

17,411,922

3,159,300

4,027,403

4.032.109

6.193.110

803,456 

144,281

385,367

121,249

152,559

356,136

2,452,335

77,599,537

77,216,945 

29,278,377 

11,317,497

14,208,187

3,399,577

353,116

13,378,191 

3,679,154

5,928,642

1,988,078

1,782,317

32,618,086 

3,904,711

10,589,859

11,004,414

7,119,102

1,942,291 

409,568

714,305

371,084

447,334

245,196

2,589,027

2,551,475

1,083,231

305,001

759,565

403,678

36,526

1,026

2,467,927

2,459,745

1,045,920

303,609

726,863

383,353

7,156

1,026

49,875,314

41,302,685

5,490,720

3,081,909

38,968,667

30,774,733

5,236,538

2,957,396

32,175,663

26,069,473

3,907,050

2,199,140

6,793,004

4,705,260

1,329,488

758,256

10,906,647

10,527,952

254,182

124,513

4,366,509

4,012,954

8,000

345,555

4,232,098

3,885,843

8,000

338,255

585,146

37,633

0

33,589

3,735

526

0

0

180

129

121,100

91,730

37,311

1,392

32,702

29,370

0

134,411

127,111

0

7,300

ASSETS AND LIA B ILIT!E S OF BANKS 157

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 107. ASSETS A N D L IA B IL IT IE S OF A L L C O M M E R C IA L BAN KS IN TH E U N ITE D STATES (STATES A N D O THER A R E A S ),

DECEMBER 31, 1 9 7 7 -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, liability, or equity capital item Total

Total

Members of 

Federal Reserve System

Not 

members 

of F.R. 

System

Total

Banks

of

deposit1

Nondeposit

trust

Total National State companies2

Loans, n e t........................................................................................ 610,530,162 591,312,754 443,659,971 343,242,890 100,417,081 147,652,783 19,217,408 19,167,337 50,071

Plus: Reserve for possible loan losses............................................ 6,858,724 6,692,291 5,257,375 3,896,036 1,361,339 1,434,916 166,433 165,771 658

Loans, to ta l...................................................................................... 617,388,886 598,005,045 448,917,346 347,138,926 101,778,420 149,087,699 19,383,841 19,333,108 50,729

Plus: Unearned income on loans.................................................. 14,873,516 14,701,242 9,859,230 8,183,618 1,675,612 4,842,012 172,274 172,278 0

Loans, gross...................................................................................... 632,262,402 612,706,287 458,776,576 355,322,544 103,454,032 153,929,711 19,556,115 19,505,386 50,729

Real estate Ioans-total.................................................................. 178,979,392 178,606,540 123,055,114 99,055,856 23,999,258 55,551,426 372,852 368,019 4,833

Construction and land development.......................................... 21,449,220 21,395,222 16,157,687 12,675,071 3,482,616 5,237,535 53,998 53,998 0

Secured by farmland...................................................................

Secured by 1- to 4-family residential properties:

7,751,582 7,732,003 3,330^11 2,729,789 600,422 4,401,792 19,579 18,935 644

Insured by FHA and guaranteed by V A ................................. 7,988,871 7,867,781 6,665,606 5,530,156 1,135,450 1,202,175 121,090 121,037 53

Conventional...........................................................................

Secured by multi-family (5 or more) residential properties:

88,990,943 88,897,254 61,022,004 49,976,300 11,045,704 27,875250 93,689 90,084 3,605

Insured by FHA........................................................................ 411,640 404,915 336,338 208,273 128,065 68,577 6,725 6,725 0

Conventional........................................................................... 4,508,428 4,506,100 3,218,353 2,366,952 851,401 1,287,747 2,328 1,940 388

Secured by non farm nonresidential properties......................... 47,878,708 47,803,265 32,324,915 25,569,315 6,755,600 15,478,350 75,443 75,300 143

Loans to financial institutions-total............................................ 43,889,525 36,816,160 34,645,402 23,494,674 11,150,728 2,170,758 7,073,365 7,073,365 0

To real estate investment trusts and mortgage companies .... 9,088,641 9,074,089 8,684,471 6,328,052 2,356,419 389,618 14,552 14,552 0

To domestic commerical banks.................................................. 5,206,446 3,152,158 2,503,148 1,794,826 708,322 649,010 2,054,288 2,054,288 0

To banks in foreign countries..................................................... 11,515,939 7,245,433 6,994,754 4,006,522 2,988,232 250,679 4,270,506 4,270,506 0

To other depository institutions............................................... 1,935,487 1,747259 1,594,506 1,309,555 284,951 152,753 188,228 188,228 0

To other financial institutions..................................................... 16,143,012 15,597,221 14,868,523 10,055,719 4,812,804 728,698 545,791 545,791 0

Loans for purchasing or carrying securities-total......................... 17,410,917 17,111,350 16,036,411 9,596,661 6,439,750 1,074,939 299,567 292,963 6,604

To brokers and dealers in securities............................................ 13,059,925 12,781,182 12,440,159 6,694,648 5,745,511 341,023 278,743 276,813 1,930

Other loans for purchasing or carrying securities...................... 4,350,992 4,330,168 3,596,252 2,902,013 694,239 733,916 20,824 16,150 4,674

Loans to farmers..................................................................... .. . 25,741,427 25,713,832 14,182,665 12,359,358 1,823,307 11,531,167 27,595 27,591 4

Commercial and industrial loan s.................................................. 207,300,420 197,091,783 159,711,418 121,613,702 38,097,716 37,380,365 10,208,637 10,206,830 1,807

Loans to individuals— total............................................................. 141,461,081 141,252,072 97,394,958 79,157,181 18,237,777 43,857,114 209,009 208,936 73

To purchase private passenger automobiles on instalment basis.

Credit cards and related plans:

49,905,368 49,863,681 31,936,161 26,444,010 5,492,151 17,927,520 41,687 41,630 57

Retail (charge account) credit card plans................................. 14,695,303 14,695,085 13,106,566 10,722,027 2,384,539 1,588,519 218 218 0

Check credit and revolving credit plans..................................

To purchase other retail consumer goods on instalment basis:

3,787,695 3,779,288 3,123,274 2,196,369 926,905 656,014 8,407 8,407 0

Mobile homes (excluding travel trailers)................................. 9,126,789 9,125,850 6.401,102 5,598,966 802,136 2,724,748 939 934 5

Other retail consumer goods..................................................... 8,386,410 8,378,364 5,473,494 4,633,127 840,367 2,904,870 8,046 8,043 3

Instalment loans to repair and modernize residential property .

Other instalment loans for household, family, and other

7,324,936 7,321,124 4,856,879 3,923,338 933,541 2,464,245 3,812 3,804 8

personal expenditures.............................................................

Single-payment loans for household, family, and other

20,238,136 20,151,494 13,131,183 10,509,353 2,621,830 7,020,311 86,642 86,642 0

personal expenditures............................................................. 27,996,444 27,937,186 19,366,299 15,129,991 4,236,308 8,570,887 59,258 59,258 0

All other loans................................................................................ 17,479,640 16,114,550 13,750,608 10,045,112 3,705,496 2,363,942 1,365,090 1,327,682 37,408

Total loans and securities........................................................ 871,527,347 849,720,912 624,468,592 481,780,276 142,688,316 225,252,320 21,806,435 21,635,264 171,171

158 FEDERAL DEPOSIT INSURANCE C O R PO R ATIO N

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Direct lease financing..........................................................

Sank premises, furniture and fixtures, and other assets

representing bank premises............................................

Real estate owned other than bank premises...................

Investments in unconsolidated subsidiaries and associated

companies........................................................................

Customers' liability on acceptances outstanding..............

Other assets........................................................................

Total liabilities and equity capital.

Business and personal deposits-total.......................................

Individuals, partnerships, and corporations-demand...........

Individuals, partnerships, and corporations-savings...........

Individuals and nonprofit organizations-savings..............

Corporations and other profit organizations-savings. . . .

Individuals, partnerships, and corporations-time................

Deposits accumulated for payment of personal loans—time . 

Certified and officer's checks, travelers' checks, letters of 

credit-demand..................................................................

Government deposits-total.........................

United States Government— demand . . . .

United States Government— savings...........

United States Government-time..............

States and political subdivisions-demand . 

States and political subdivisions-savings. . 

States and political subdivisions-time . . .

Domestic interbank deposits-total............................

Commercial banks in the United States-demand . . 

Commercial banks in the United States-savings . . 

Commercial banks in the United States-time .... 

Mutual savings banks in the United States-demand 

Mutual savings banks in the United States-savings. 

Mutual savings banks in the United States-time . .

Foreign government and bank deposits-total...........

Foreign governments, central banks-demand. . . . 

Foreign governments, central banks-savings . . . .

Foreign governments, central banks-time..............

Banks in foreign countries-demand.........................

Banks in foreign countries—savings.........................

Banks in foreign countries-tim e............................

Total deposits.

Demand . . .

Savings. . . .

Time...........

Miscellaneous liabilities-total.................................................... ..

Federal funds purchased and securities sold under agreements

to repurchase-total..................................................................

With domestic and commercial banks....................................

With brokers and dealers in securities and funds...................

With others.............................................................................

Other liabilities for borrowed money.........................................

Mortgage indebtedness...............................................................

Acceptances outstanding............................................................

Other liabilities..........................................................................

5,810,574

18,439,587

3,123,557

3,059,954

12,564,445

37,865,875

1,176,607,887

786,316,946

287,965,027

215,879,936

205,116,274

10,763,662

266,096,170

100,350

16,275,463

85,077,116

7,352,543

58,209

828,522

19,300,975

4,811,859

52,725,008

51,081,687

41,433,686

5,602

7,661,107

1,646,459

791

334,042

24,596,143

2,228,738

22,598

11,088,369

8,681,308

317

2,574,813

947,071,892

384,884,199

220,779,312

341,408,381

143,411,041

86,345,894

46,941,319

7,875,177

31,529,398

10,637,438

1,045,778

13,161,524

32,220,407

18,343,828

3,091,478

2,960,330

11,491,826

36,040,336

1,137,686,982

775,303,681

286,433,822

215,213,611

204,474,934

10,738,677

259,417,816

100,350

14,138,082

84,606,557

7,333,614

58,126

828,113

19,206,313

4,788,885

52,391,506

49,296,809

40,569,108

5,602

7,019,284

1,382,465

791

319,559

19,962,329

1,724,620

22,316

8,189,798

7,935,403

317

2,089,875

929,169,376

378,723,427

220,089,648

330,356,301

123,490,575

82,945,795

44,290,140

7,862,052

30,793,603

6,758,340

1,038,594

12,083,714

20,664,132

5,461,321

13,353,988

2,550,822

2,920,229

11,021,641

32,309,342

865,757,704

562,477,790

214,471,987

149,770,739

142,215,474

7,555,265

187,180,390

77,672

10,977,002

58,245,738

5,419,565

47,822

681,378

12,955,989

3,084,863

36,056,121

46,706,832

39,098,947

3,503

6,091,170

1,203,036

667

309,509

19,246,527

1,684,180

21,361

7,926,624

7,700,2636

1,914,093

686,676,887

293,510,969

152,928,961

240,236,957

115,420,843

78,718,925

42,667,501

7,384,069

28,667,355

6,386,849

748,305

11,613,531

17,953,233

4,409,964

10,826,017

1,879,751

2,251,540

6,800,372

22,794,863

655,316,252

438,765,449

164,496,240

119,641,706

113,746,692

5,895,014

147,827,593

55,858

6,744,052

46,938,476

4,177,708

44,653

603,266

10,423,444

2,337,068

29,352,337

27,132,687

21,802,129

2,756

4,551,177

567,648

563

208,414

10,396,612

819,815

14,396

4,753,775

3,278,9056

1,529,715

523,233,224

212,309,941

122,041,148

188,882,135

84,049,418

59,363,945

33,389,454

5,278,836

20,695,655

4,012,153

474,641

6,851,918

13,346,761

1,051,357

2,527,971

671,071

668,689

4,221,269

9,514,479

210,441,452

123,712,341

49,975,747

30,129,033

28,468,782

1,660,251

39,352,797

21,814

4,232,950

11,307,262

1,241,857

3,169

78,112

2,532,545

747,795

6,703,784

19,574,145

17,296,818

747

1,539,993

635,388

104

101,095

8,849,915

864,365

6,965

3,172,849

4,421,3580

384,378

163,443,663

81J201,028

30,887,813

51,354,822

31,371,425

19,354,980

9^78,047

2,105,233

7,971,700

2,374,696

273,664

4,761,613

4,606,472

4,989,840

540,656

40,101

470,185

3,730,994

271,929,278

212,825,891

71,961,835

65,442,872

62,259,460

3,183,412

72,237,426

22,678

3,161,080

26,360,819

1,914,049

10,304

146,735

6,250,324

1,704,022

16,335,385

2,589,977

1,470,161

2,099

928,114

179,429

124

10,050

715,802

40,440

955

263,174

235,140

311

175,782

/242,492,489

85^12,458

67,160,687

90,119,344

8,069,732

4,226,870

1,622,639

477,983

2,126,248

371,491

290,289

470,183

2,710,899

313

95,759

32,079

99,624

1,072,619

1,825,539

38,920,905

11,013,265

1,531,205

666,325

641,340

24,985

6,678,3540

2,137,381

470,559

18,929

83

409

94,662

22,974

333,502

1,784,878

864,5780

641,823

263,9940

14,483

4,633,814

504,118

282

2,898,571

745,9050

484,938

17,902,516

6,160,772

689,664

11,052,080

19,920,466

3,400,099 

2,651,179

13,125

735,795

3,879,098 

7,184 

1,077,810 

11,556,275

305

74,835

14,103

95,679

1,072,619

1,626,461

38,335,759

10,989,097

1,511,850

664,407

639,422

24,985

6,677,3080

2,135,532

470,477

18,852

83

409

94,657

22,974

333,502

1,779,841

859,5410

641,823

263,9940

14,483

4,628,874

499,178

282

2,898,571

745,9050

484,938

17,868,289

6,129,509

687,746

11,051,034

19,640,244

3,400,099 

2,651,179

13,125

735,795

3,829,445 

1,238 

1,077,810 

11,331,652

20,924

17,976

3,9450

199,078

585,146

24,168

19,355

1.918

1.9180

1.046 0

1,849

82

7700500

5.037

5.037 

0 

0 

0 

0 0

4.940

4.940 

0 

0 

0 

0 0

34,227

31,263

1.918

1.046

280,2220000

49,653

5,9460

224,623

ASSETS AND LI ABI LITI ES OF BANKS 159

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),

DECEMBER 31, 1 9 7 7 -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, liability, or equity capital item Total

Total

Members of 

Federal Reserve System

Not 

members 

of F.R. 

System

Total

Banks

of

deposit1

Nondeposit

trust

companies2Total National State

Total liabilities (excluding subordinated notes and

debentures)........................................................................... 1,090,482,933 1,052,659,951 802,097,730 607,282,642 194,815,088 250,562,221 37,822,982 37,508,533 314,449

Subordinated notes and debentures.................................................. 5,818,888 5,738,994 4,476,961 3,034,830 1,442,131 1,262,033 79,894 78,842 1,052

Equity capital-total........................................................................ 80,306,066 79,288,037 59,183,013 44,998,780 14,184,233 20,105,024 1,018,029 748,384 269,645

Preferred stock-par value............................................................. 104,905 98,791 31,655 25,246 6,409 67,136 6,114 5,712 402

Preferred stock-shares outstanding (in thousands)...................... 7,253 7,172 3,722 635 3,087 3,449 82 57 25

Common stock-par value............................................................. 17,371,574 17,265,206 12,506,675 9,551,745 2,954,930 4,758,531 106,368 53,594 52,774

Common stock-shares authorized (in thousands)...................... 2,355,181 2,233,696 1,362,602 1,100,211 262,391 871,094 121,485 77,483 44,002

Common stock-shares outstanding (in thousands)...................... 1,845,088 1,835,966 1,257,142 1,019,298 237,844 578,824 9,122 5,976 3,146

Surplus............................................................................................ 31,672,066 31,078,285 22,573,754 16,649,723 5,924,031 8,504,531 593,781 537,482 56,299

Undivided profits........................................................................... 29,324,724 29,084,773 22,836,780 17,733,303 5,103,477 6,247,993 239,951 97,596 142,355

Reserve for contingencies and other capital reserves................... 1,832,797 1,760,982 1,234,149 1,038,763 195,386 526,833 71,815 54,000 17,815

PERCENTAGES

Of total assets:

Cash and due from banks............................................................. 14.4 14.1 15.6 14.1 20.1 9.4 24.7 25.0 6.4

U.S. Treasury securities and obligations of other 

U.S. Government agencies and corporations............................... 11.3 11.6 10.3 10.4 10.1 15.7 3.6 3.5 6.6

Other securities............................................................................. 10.9 11.1 10.6 10.8 10.0 12.9 3.1 2.9 14.1

Loans (including federal funds sold and securities 

purchased under agreements to resell)....................................... 56.5 56.4 55.7 57.3 50.9 58.3 60.6 61.0 31.5

Other assets................................................................................... 6.9 6.8 7.8 7.5 8.9 3.7 8.0 7.5 41.3

Total equity capital4 ..................................................................... 6.8 7.0 6.8 6.9 6.7 7.4 2.65 2.05 46.1

Of total assets other than cash and U.S. Treasury securities:

Total equity capital4 ..................................................................... 8.8 9.0 8.9 8.8 9.4 9.3 3.65 2.1s 52.9

Number of banks................................................................................ 14,738 14,412 5,669 4,655 1,014 8,743 326 241 85

1 , 2 , 3 , 4, 5 see notes to table 106.

Note: Further information on the report of assets and liabilities of banks may be found on pp. 151-152.

160 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 108. ASSETS AND LIA B ILIT IE S OF A LL MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS)

JUNE 30, 1977, A N D DECEM BER 31, 1977 

BANKS GROUPED BY INSURANCE STATUS 

(Amounts in thousands of dollars)

Asset, liability, or surplus account item

June 30,1977 December 31, 1977

Total Insured Noninsured Total Insured Noninsured

Total assets.............................................................................................................................. 141,801,400 127,190,954 14,610,446 147,328,974 132,201,371 15,127,603

Cash, balances with banks, and collection items-total...................................................... 2,099,459 1,904,548 194,911 2,421,300 2,214,478 206,822

Currency and c o in ........................................................................................................ 418,524 350,115 68,409 453,014 386,038 66,976

Demand balances with banks in the United States...................................................... 783,246 685,404 97,842 870,286 761,624 108,662

Other balances with banks in the United States............................................................ 752,656 746,085 6,571 929,988 922,001 7,987

Cash items in process of collection............................................................................... 145,033 122,944 22,089 168,012 144,815 23,197

Securities-total................................................................................................................... 44,903,677 40,634,618 4,269,059 46,577,507 42,219,724 4,357,783

United States Government and agency securities-total.............................................. 16,392,891 14,678,230 1,714,661 17,444,176 15,496,605 1,947,571

Securities maturing*in 1 year or less....................................................................... 2,358,517 2,082,835 275,682 2,092,179 1,857,506 234,673

Securities maturing in 1 to 5 years...................... .................................................. 3,970,881 3,437,312 533,569 4,011,763 3,427,509 584,254

Securities maturing in 5 to 10 years....................................................................... 2,202,965 1,908,801 294,164 2,046,723 1,751,417 295,306

Securities maturing after 10 years............................................................................ 7,860,528 7,249,282 611,246 9,293,511 8,460,173 833,338

Corporate bonds........................................................................................................... 17,454,053 16,328,521 1,125,532 17,593,343 16,449,941 1,143,402

State, county, and municipal obligations....................................................................... 2,551,273 2,466,897 84,376 2,841,951 2,770,854 71,097

Other bonds, notes, and debentures............................................................................ 3,943,208 3,307,248 635,960 3,964,367 3,503,057 461,310

Corporate stock-total................................................................................................... 4,562,252 3,853,722 708,530 4,733,670 3,999,267 734,403

Bank......................................................................................................................... 566,520 390,520 176,000 570,598 409,239 161,359

Other......................................................................................................................... 3,995,732 3,463,202 532,530 4,163,072 3,590,028 573,044

Federal funds sold and securities purchased under agreements to resell........................... 2,957,327 2,698,798 258,529 2,082,437 1,880,491 201,946

Other loans-total................................................................................................................. 88,023,210 78,438,089 9,585,121 92,349,348 82,307,795 10,041,553

Real estate loans-total................................................................................................... 84,076,139 75,010,824 9,065,315 88,227,030 78,739,467 9,487,563

Construction loans........... ...................................................................................... 1,034,683 926,861 107,822 1,241,409 1,117,143 124,266

Secured by farmland.............................................................................................

Secured by residential properties:

Secured by 1- to 4-family residential properties:

51,858 43,296 8,562 48,360 39,101 9,259

Insured by Federal Housing Administration........................................... 11,603,033 10,873,212 729,821 11,261,432 10,587,327 674,105

Guaranteed by Veterans Administration...................................................... 12,117,755 11,099,172 1,018,583 12,024,425 11,027,870 996,555

Not insured or guaranteed by FHA or VA..............................................

Secured by multifamily (5 or more) residential properties:

30,838,894 25,429,991 5,408,903 34,330,388 28,437,445 5,892,943

Insured by Federal Housing Administration................................................. 2,578,376 2,558,391 19,985 2,726,025 2,695,114 30,911

Not insured by F H A ..................................................................................... 11,745,724 11,160,238 585,486 11,938,029 11,360,282 577,747

Secured by other properties............................................................................. 14,105,816 12,919,663 186,153 14,656,962 13,475,185 1,181,777

Loans to domestic commercial and foreign banks......................................................... 20,280 20,280 0 10,254 10,254 0

Loans to other financial institutions............................................................................ 87,218 87,107 111 56,924 56,679 245

Loans to brokers and dealers in securities.................................................................... 20,720 20,720 0 30,000 30,000 0

Other loans for purchasing or carrying securities......................................................... 1,470 998 472 2,764 1,285 1,479

Loans to farmers (excluding loans on real estate)......................................................... 1,350 1,350 0 1,407 1,407 0

Commercial and industrial loans.................................................................................. 637,116 622,428 14,688 519,576 506,372 13,204

ASSETS AND LIABILITIES OF BANKS

Digitized for FRASER 

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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),

JU NE 30, 1977, A N D DECEMBER 31, 1 9 7 7 -C O N T IN U E D 

BANKS GROUPED BY INSURANCE STATUS 

(Amounts in thousands of dollars)

Asset, liability, or surplus account item

June 30,1977 December 31, 1977

Total Insured IMoninsured Total Insured IMoninsured

Loans to individuals for personal expenditures............................................................ 3,082,314 2,604,060 478,254 3,412,579 2,892,234 520,345

All other loans (including overdrafts)............................................................................. 96,603 70,322 26,281 88,814 70,097 18,717

Total loans and securities................................................................................... 135,884,214 121,771,505 14,112,709 141,009,292 126,408,010 14,601,282

Bank premises, furniture and fixtures, and other assets representing bank premises . . 1,238,068 1,104,539 133,529 1,304,438 1,161,551 142,887

Real estate owned other than bank premises............................................................... 550,315 501,789 48,526 492,074 444,012 48,062

Investments in subsidiaries not consolidated.................................................................. 126,282 117,365 8,917 125,200 115,357 9,843

Other assets.................................................................................................................... 1,903,062 1,791,208 111,854 1,976,670 1,857,963 118,707

Total liabilities and surplus accounts........................................................................................ 141,801,400 127,190,954 14,610,446 147,328,974 132,201,371 15,127,603

Deposits-total.................................................................................................................... 130,165,124 116,951,678 13,213,446 134,916,762 121,265,988 13,650,774

Savings and time deposits-total..................................................................................... 128,801,214 115,623,335 13,177,879 133,325,014 119,734,061 13,590,953

Savings deposits......................................................................................................... 77,896,119 69,596,204 8,299,915 78,732,494 70,382,619 8,349,875

Deposits accumulated for payment of personal loans............................................. 1 1 0 369 19 350

Fixed maturity and other time deposits.................................................................. 50,905,094 46,027,130 4,877,964 54,592,151 49,351,423 5,240,728

Demand deposits-total................................................................................................ 1,363,910 1,328,343 35,567 1,591,748 1,531,927 59,821

Miscellaneous liabilities-total.............................................................................................. 2,126,509 1,852,879 273,630 2,433,353 2,125,609 307,744

Securities sold under agreements to repurchase............................................................ 102,033 102,033 0 169,166 169,166 0

Other borrowings........................................................................................................... 298,958 294,073 4,885 496,123 483,710 12,413

Other liabilities.............................................................................................................. 1,725,518 1,456,773 268,745 1,768,064 1,472,733 295,331

Total liabilities................................................................................................... 132,291,633 118,804,557 13,487,076 137,350,115 123,391,597 13,958,518

Minority interest in consolidated subsidiaries..................................................................... 61 61 0 61 61 0

Surplus accounts-total......................................................................................................... 9,509,706 8,386,336 1,123,370 9,978,798 8,809,713 1,169,085

Capital notes and debentures........................................................................................ 225,417 253,152 2,265 356,272 353,386 2,886

Other surplus accounts................................................................................................... 9,254,289 8,133,184 1,121,105 9,622,526 8,456,327 1,166,199

PERCENTAGES

Of total assets:

Cash and balances with other banks................................................................................... 1.5 1.5 1.3 1.6 1.7 1.4

U.S. Government and agency securities............................................................................. 11.6 11.5 11.7 11.8 11.7 12.9

Other securities.................................................................................................................... 20.1 20.4 17.5 19.8 20.2 15.9

Loans (including federal funds sold and securities purchased under

agreements to resell)................................................................................................ 64.2 63.8 67.4 64.1 63.7 67.7

Other assets......................................................................................................................... 2.7 2.8 2.1 2.6 2.7 2.1

Total surplus accounts......................................................................................................... 6.7 6.6 7.7 6.8 6.7 7.7

Of total assets other than cash and U.S. Government obligations:

Total surplus accounts......................................................................................................... 7.7 7.6 8.8 7.8 7.7 9.0

Number of banks...................................................................................................................... 469 325 144 467 323 144

162 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 109. ASSETS AND LIA B ILITIE S OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1972-1977 

(Amounts in thousands of dollars)

Asset, liability, or equity capital item Dec. 31, 1972 Dec. 31, 1973 Dec. 31, 1974 Dec. 31, 1975 Dec. 31, 1976 Dec. 31, 1977

Total assets...................................................................................................... 737,699,385 832,658,280 912,529,261 952,451,011 1,011,329,2055 1,137,686,9825

Cash and due from banks-total..................................................................

Cash items in process of collection.......................................................

Demand balances with banks in the United States..............................

Other balances with banks in the United States...................................

Including interest bearing balances1 ..............................................

111,844,113

45,386,844

28,156,064

2,783,379

116,939,181

44,661,826

30,128,768

2,771,041

126,081,191

47,281,289

34,414,497

4,090,428

129,024,072

47,332,821

32,168,464

7,566,509

130,221,094

48,366,003

33,022,738

5,874,949

5,568,150

4,796,214

4,409,156

12,192,210

25,968,980

160,352,697

66,447,697

39,240,406

5,915,123

5,362,957

5,410,379

4,551,868

13,998,824

29,340,268

Balances with banks in foreign countries..............................................

Including interest bearing balances1 ..............................................

739,928 787,960 1,449,086 2,820,929

Currency and c o in ................................................................................

Reserve with Federal Reserve Bank.......................................................

8,703,008

26,074,890

10,768,844

27,820,742

11,727,595

27,118,296

12,355,374

26,779,975

Securities-total...........................................................................................

Investment securities—to ta l..................................................................

U.S. Treasury securities..................................................................

Obligations of other U.S. Government agencies and corporations. .

Obligations of States and political subdivisions..............................

Other bonds, notes, and debentures..............................................

Corporate stock1 ..................................................................................

183,760,796

178,632,700

64,709,715

21,156,678

87,418,538

5,347,769

188,230,092

179,574,763

55,293,300

27,538214

91,227,882

5,515,367

193,902,967

185,919,136

51,873,986

31,087,341

96,791,360

6,166,449

227,847,169

222,515,186

81,011,010

33,298,668

100,801,477

7,404,031

249,976,105

240,552,476

96,883,068

34,326,811

103,505,764

5,836,833

1,541,489

7,882,140

258,408,158

250,392,895

95,961,373

35,812,115

112,900,214

5,719,193

1,611,533

Trading account securities.................................................................... 5,128,096 8,655,329 7,983,831 5,331,983 6,403,730

Federal funds sold and securities purchased under agreements

to resell-total........................................................................................ 25,634,862 34,379,920 38,937,288 37,345,238 45,869,893 49,875,314

Loans, net.................................................................................................. 518,731,657

6,186,775

524,918,432

12,617,065

537,535,497

150,904,938

17,273,179

6,716,845

8,198,789

72,881,477

423,194

4,158,942

41252,512

35.900.747 

9,939,141

( 2,782,815

\ 6,620,910

( 1,348,516

\ 15,209,365

15,089,724

11.074.748

4,014,976

23,268,314

178,751,008

591,312,754

6,692,291

598,005,045

14,701,242

612,706,287

178,606,540

21,395,222

7,732,003

7,867,781

88,897254

404,915

4,506,100

47,803,265

36,816,160

9,074,089

3,152,158

7,245,433

1,747,259

15,597,221

17,111,350

12,781,182

4,330,168

25,713,832

197,091,783

Plus: Reserve for possible loan losses1 .................................................

Loans, to ta l................................................................................................

Plus: Unearned income on loans1.........................................................

Loans, gross................................................................................................

Real estate loans-total..........................................................................

Construction and land development1..............................................

388,902,133

99,086,276

459,755,788

118,787,181

506,378,800

131,751,383

502,289,682

136,186,930

Secured by farmland.......................................................................

Secured by 1- to 4-family residential properties:

Insured by FHA and guaranteed by V A ...................................

Conventional.............................................................................

Secured by multi-family (5 or more) residential properties:

Insured by FHA..........................................................................

Conventional.............................................................................

Secured by non farm nonresidential properties..............................

Loans to financial institutions-total....................................................

To real estate investment trusts and mortgage companies1 ...........

4,752,270

10,418,222

46,425,199

1,225,769

4,550,113

31,714,703

29,527,538

5,420,190

10,156,517

57,639,300

1293,191

5,636,229

38,641,754

39,696,478

6,030,620

9,348,308

65,204,281

939,083

6,652,445

43,576,646

45,202,429

6,370,913

8,869,801

68,149,590

513,947

5,401,104

46,881,575

38,966,705

To domestic commercial banks.......................................................

To banks in foreign countries.........................................................

To other depository institutions....................................................

To other financial institutions2 .......................................................

Loans for purchasing or carrying securities-total................................

To brokers and dealers in securities.................................................

Other loans for purchasing or carrying securities...........................

Loans to farmers..................................................................................

Commercial and industrial loans.............................. ..........................

| 6,119,843

} 23,407,695

15,632,717

11,165,572

4,467,145

14,302,106

132,497,555

9,155,496

30,540,982

11,926,687

7,625,741

4,300,946

17,150,320

158,688,202

10,082,525

35,119,904

9,195,911

5,192,896

4,003,015

18,225,296

184,216,999

9,556,714

29,409,991

10,879,642

7,055,262

3,824,380

20,135,056

175,922,939

ASSETS AND LI ABI LITI ES OF BANKS 163

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Federal Reserve Bank of St. Louis
Table 109. ASSETS AND LIA B ILIT IE S OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1972-1977-C O N TIN U E D 

(Amounts in thousands of dollars)

Asset, liability, or equity capital item Dec. 31, 1972 Dec. 31, 1973 Dec. 31, 1974 Dec. 31, 1975 Dec. 31, 1976 Dec. 31, 1977

Loans to individuals-total..................................................................... 87,629,904 100,382,510 103,714,164 106,819,480 118,905,722 141,252,072

To purchase private passenger automobiles on instalment basis. . . 29,084,924 33,477,132 32,949,382 33,455,998 39,806,519 49,863,681

Credit cards and related plans:

Retail (charge account) credit card plans.................................... 5,443,349 6,878,593 8,327,292 9,551,255 11,373,566 14,695,085

Check credit and revolving credit plans..................................... 1,780,153 2,262,700 2,810,808 2,827,207 3,054,209 3,779,288

To purchase other retail consumer goods on instalment basis:

Mobile homes (excludes travel trailers)....................................... 6,436,145 8,371^86 8,998,167 8,720,369 8,743,103 9,125,850

Other retail consumer goods....................................................... 5,170,118 6,206,851 6,514,415 6,720,411 7,246,252 8,378,364

Instalment loans to repair and modernize residential property . . . 4,326,916 4,906,940 5,625,691 5,955,100 6,567,706 7,321,124

Other instalment loans for household, family, and other personal

expenditures................................. .............................................. 12 £03,659 14,538,048 15,491,334 16,455,919 17,792,293 20,151,494

Single-payment loans for household, family, and other personal

expenditures................................................................................ 22,484,640 23,740,960 22,997,075 23,133,221 24,322,074 27,937,186

All other loans......................................................................................... 10,226,037 13,124,410 14,072,618 13,378,930 14,715,044 16,114,550

Total loans and securities.......................................................... 598,297,791 682,365,800 739,219,055 767,482,089 814,577,655 899,596,226

5,118,065 5,810,261

Bank premises, furniture and fixtures, and other assets representing

bank premises................................................................................... 11,524,646 12,788,763 14,296,959 15,598,230 16,694,773 18,343,828

Real estate owned other than bank premises....................................... 369,193 433,860 811,080 1,908,880 2,894,630 3,091,478

Investments in unconsolidated subsidiaries and associated companies . 1,077,700 1,403,400 1,739,054 1,992,754 2,303,869 2,960,330

Customers' liability on acceptances outstanding................................. 3,471,203 4,356,527 10,653,382 8,687,996 9,153,957 11,491,826

Other assets.......................................................................................... 11,114,739 14,370,749 19,728,540 27,756,990 30,365,162 36,040,336

Total liabilities and equity capital..................................................................... 737,699,385 832,658,280 912,529,261 952,451,011 1,011,329,205 1,137,686,982

Business and personal deposits-total.......................................................... 504,283,757 555,151,799 604,637,647 645,305,033 695,593,860 775,303,681

Individuals, partnerships, and corporations-demand............................ 221,204,645 231,956,880 235,984,680 246,710,621 255,418,592 286,433,822

Individuals, partnerships, and corporations-savings............................ 124,188,716 127,818,434 136,268,612 160,716,975 197,697,188 215,213,611

Individuals and nonprofit organizations—savings ......................... 189,038,090 204,474,934

Corporations and other profit organizations—savings^.................... 8,659,098 10,738,677

Individuals, partnerships, and corporations-time................................. 147,083,850 184,010,925 221,618,614 226,851,406 230,768,986 259,417,816

Deposits accumulated for payment of personal loans-time................ 554,001 503,468 386,635 280,452 146,318 100,350

Certified and officers' checks, travelers' checks, letters of

credit-demand................................................................................ 11,252,545 10,862,092 10,379,106 10,745,579 1 1,562,776 14,138,082

Government deposits-total........................................................................ 67,554,342 73,660,934 74,219,736 70,704,640 71,883,024 84,606,557

United States Government-demand..................................................... 10,939,672 9,887,668 4,821,969 3,126,532 3,039,886 7,333,614

United States Government—savings........................................................ 56,306 58,126

United States Government-time.......................................................... 614,035 440,641 500,147 588,481 679,580 828,113

States and political subdivisions-demand............................................ 18,672,774 18,746,900 18,710,659 18,879,179 17,985,499 19,206,313

States and political subdivisions—savings............................................... 6,057,276 4,788,885

States and political subdivisions-time.................................................. 37,327,861 44,585,725 50,186,961 48,110,448 44,064,477 52,391,506

Domestic interbank deposits-total............................................................. 33,677,534 37,444,862 45,328,505 44,280,973 44,480,526 49,296,809

Commercial banks in the United States-demand................................. 28,569,727 29,861,879 35,101,553 33,491,673 35,958,351 40,569,108

Commercial banks in the United States—savings................................. 10,871 5,602

Commercial banks in the United States-time....................................... 3,548,503 5,783,907 8,563,604 9,129,775 6,807,485 7,019,284

Mutual savings banks in the United States-demand............................ 1,205,688 1,155,682 1,197,332 1,159,714 1,384,810 1,382,465

Mutual savings banks in the United States— savings............................... 1,232 791

Mutual savings banks in the United States-tim e................................. 353,616 643,394 466,016 499,811 317,777 319,559

164 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Foreign government and bank deposits-total............................................

Foreign governments, central banks-demand......................................

Foreign governments, central banks-savings......................................

11,391,934

908,731

15,361,830

1,355,645

22,227,034

1,882,054

20,458,022

1,659,374

18,966,712

1,846,518

102,796

8,482,379

6,766,596

5

19,962,329

1,724,620

22,316

8,189,798

7,935,403

317

2,089,875

929,169,376

378,723,427

220,089,648

330,356,301

123,490,575

82,945,795

6,758,340

1,038,594

12,083,714

20,664,132

Foreign governments, central banks-time............................................

Banks in foreign countries-demand .....................................................

Banks in foreign countries—savings.......................................................

6,517,493

3,637,309

8,506,931

5,279,635

12,078,963

6,339,583

11,374,159

5,649,939

Banks in foreign countries-tim e..........................................................

Total deposits.............................................................................

Demand................................................................................

Savings...................................................................................

Time.....................................................................................

Miscellaneous liabilities-total.....................................................................

Federal funds purchased and securities sold under agreements

to repurchase-total..........................................................................

Other liabilities for borrowed money....................................................

Mortgage indebtedness..........................................................................

Acceptances outstanding.....................................................................

Other liabilities3 ...................................................................................

328,401

616,907,567

296,391,091

124,188,716

196,327,760

61,514,816

33,731,069

3,919,796

1,160,675

3,570,900

19,132,376

219,619

681,619,425

309,106,381

127,818,434

244,694,610

85,391,650

50,480,996

7,179,644

771,519

4,486,309

22,473,182

1,926,434

746,412,922

314,416,936

136,268,612

295,727,374

94,152,187

51,224,639

4,867,119

724,845

11,226,448

26,109,136

1,774,550

780,748,668

321,422,611

160,716,975

298,609,082

93,975,434

52,190,147

4,651,050

774,094

9,275,803

27,084,340

1,768,418

830,924,122

333,963,028

203,925,674

293,035,420

103,020,572

70,320,490

5,127,666

799,100

9,762,309

17,011,007

Total liabilities(excluding subordinated notes

and debentures).....................................................................

Subordinated notes and debentures............................................................

Reserves on loans and securities-total4 ....................................................

678,422,383

4,092,820

6,909,306

6,623,801

112,167

173,338

48,274,876

68,924

12,853,653

21,528,422

13,012,232

811,645

767,011,075

4,117,351

7,808,584

7,526,744

107,994

173,846

53,721,270

65,650

13,846,071

23,593,311

15,361,857

854,381

840,565,109

4,259,531

8,676,953

8,376,683

131,581

168,689

59,027,668

43,460

14,789,463

25,313,257

17,969,789

911,699

874,724,102

4,407,892

9,010,387

8,654,714

169,113

186,560

64,308,630

47,881

15,565,026

26,712,935

21,182,330

800,458

933,944,694

5,123,725

1,052,659,951

5,738,994

Reserves for bad debt losses on loans....................................................

Other reserves on loans..........................................................................

Reserves on securities.............................................................................

Equity capital-total...................................................................................

Preferred stock— par value.....................................................................

Common stock-par value.....................................................................

Surplus...................................................................................................

Undivided profits...................................................................................

Reserve for contingencies and other capital reserves...........................

72,260,786

67,328

16,219,259

28,893,882

25,251,535

1,828,782

79,288,037

98,791

17,265,206

31,078,285

29,084,773

1,760,982

PERCENTAGES

Of total assets:

Cash and due from banks..................................................................... 15.2 14.0 13.8 13.5 12.9 5 14.15

U.S. Treasury securities and obligations of other U.S. Government

agencies and corporations..................................................................... 11.6 9.9 9.1 12.0 13.05 11.65

Other securities........................................................................................... 13.3 12.7 12.2 11.9 11.7s 11.15

Loans (including federal funds sold and securitie purchased under

agreements to resell) .................................. ................................. 56.2 59.3 59.8 56.7 55.85 I 56.45

Other assets............................................ ................................................... 3.7 4.0 5.2 5.9 6,65 6.85

Total equity capital............................................ .................................... 6.5 6.5 6.5 6.8 7.15 7.05

Of total assets other than cash and U.S. Treasury securities:

Total equity capital.......................................................... .......................... 8.6 8.1 8.0 8.7 9.25 9.05

Number of banks.............................................................................................. 13,733 13,976 14,228 14,384 14,411 14,412

1Not available before 1976.

2Before 1976 included loans to real estate investment trusts and mortgage companies.

31ncludes minority interest in consolidated subsidiaries.

4Reporting of reserves for losses on loans and securities was revised in 1976; see page 152. 

5Total asset data are based on “ Loans, net.”

ASSETS AND LIABILITIES OF BANKS 165

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Federal Reserve Bank of St. Louis
Table 110. ASSETS AND LIA B ILITIE S OF INSURED COMMERCIAL BANKS (DOMESTIC AND FOREIGN OFFICES),

UNITED STATES AND OTHER AREAS, 1974-1977

Dec. 31, 1974 Dec. 31, 1975 Dec. 31, 1976 June 30,1977 Dec. 31, 19771

Total assets............................................................................................................................... 1,045,972,427 1,095,388,957 1,182,390,845 1,228,366,375 1,339,393,026

Cash and due from banks.............................................................................................. 178,295,259 189,406,997 203,772,449 208,283,772 242,983,142

Securities—total....................................................................................................................

U.S. Treasury securities................................................................................................

Obligations of U.S. Government agencies and corporations.........................................

Obligations of States and political subdivisions............................................................

Other bonds, notes, and debentures.............................................................................

Corporate stock..............................................................................................................

Trading account securities..............................................................................................

197,019,318

51,886,435

31,088,271

96,800,855

} 9,201,132

8,042,625

231,527,434

80,963,492

33,281,405

100,873,178

10,710,644

5,698,715

254,383,382 

96,874,136

34,323,582

103,588,597

{ 9,594,671

I 1,750,989

8,251,407

259,474,871

97233,796

34,389,521

108,720,777

9,864,455

1,809,269

7,457,053

264,525,796

96,026,151

35,818,251

113,019,592

10,542,996

1,853,806

7^65,000

Federal funds sold and securities purchased under agreements to resell........................... 39,005,103 36,992,511 45,861,131 40,899,161 49,845,033

Loans, n e t............................................................................................................................ 620,866,854

6,347,839

627,214,693

656,224,103 715,851,991

Plus: Reserve for possible loan losses2 .......................................................................... 6,674,638 6,894,344

Loans, to ta l......................................................................................................................... 580,596,623 586,055,773 662,898,741 722,746,335

Direct lease financing............................................................................................................ 3,273,680 4,054,812 5,816,434 6,186,765 6,977,301

Bank premises, furniture and fixtures, and assets representing bank premises................ .. 14,674,995 16,054,291 17,242,930 17,944,356 19,010,491

Real estate owned other than bank premises..................................................................... 828,853 1,935,839 2,974,073 3,162,192 3,134,042

Investments in unconsolidated subsidiaries and associated companies.............................. 750,218 789,718 954,500 941,211 987,244

Customers liability on acceptances outstanding.................................................................. 10,632,747 7,095,983 11,864,784 14,433,352 14,280,877

Other assets................................................................................................. 20,895,631 21,475,599 18,654,308 20,816,592 21,797,109

166 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Total liabilities and equity capital.............................................................................................

Total deposits......................................................................................................................

Federal funds purchased and securities sold under agreements to repurchase...................

Other liabilities for borrowed money.................................................................................

Mortgage indebtedness........................................................................................................

Acceptances executed and outstanding...............................................................................

Other liabilities...................................................................................................................

Total liabilities (excluding subordinated notes and debentures)...................................

Subordinated notes and debentures....................................................................................

Reserves on loans and securities—total2 ............................................................................

1,045,972,427 1,095,388,957 1,182,390,845 1,228,366,375 1,339,393,026

871,225,194

50,980,062

8,368,159

725,166

14,131,257

28,426,938

973,856,776

915,856,039

52,609,050

7,934,301

774,450

11,291,867

29,031,187

1,017,496,894

991,913,006

70,435,494

9,510,108

826,196

12,048,179

20,171,609

1,104,904,592

1,022,062,067

75,820,815

11,563,041

856,439

14,594,467

22,334,880

1,147,231,709

1,116,617,556

83,315,006

13,146,839

1,048,297

14,432,321

25,711,530

1,254,271,549

4,261,373

8,779,607

8,466,353

144,446

168,808

59,074,671

4,422,484

9,193,375

8,791,680

212,260

189,435

64,276,204

5,220,566 5,450,465 5,830,565

Reserve for losses on loans.............................................................................................

Other reserves on loans..................................................................................................

Reserves on securities...................................................................................................

Equity capital-total...........................................................................................................

Memoranda

Standby letters of credit outstanding3 .....................................................................................

Time certificates of $100,000 or more:3

Time certificates of deposit................................................................................................

72,265,687 75,684,201 79,290,912

16,410,420

114,172,181

23,307,985

17,198,835

112,053,745

24,503,572

20,043,593

135,756,267

Other time deposits............................................................................................................. 26,366,568

Number of banks...................................................................................................................... 14,228 14,384 14,411 14,441 14,412

1 For more detailed 1977 data, see Assets and Liabilities, Commercial and Mutual Savings Banks, December 31, 1977.

2Changes in the reporting of loan losses beginning in 1976 are discussed on page 152.

3Data not available prior to 1976.

ASSETS AND LIABILITIES OF BANKS 167

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 111. ASSETS AND LIA B ILIT IE S OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1972-1977 

(Amounts in thousands of dollars)

Asset, liability, or surplus account item Dec. 31, 1972 Dec. 31, 1973 Dec. 31, 1974 Dec. 31, 1975 Dec. 31, 1976 Dec. 31, 1977

Total assets.................................................................................................................................... 87,650,051 93,012,515 95,589,401 107,280,765 120,839,827 132,201,371

Cash, balances with banks, and collection items-total............................................................

Currency and c o in .............................................................................................................

Demand balances with banks in the United States............................................................

Other balances with banks in the United States..................................................................

Cash items in process of collection.....................................................................................

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

683,943

1,022,757

78,551

2,195,390

308,887

706,116

1,091,274

89,113

2,188,926

338,001

925,344

807,240

118,341

2,214,478

386,038

761,624

922,001

144,815

Securities-total......................................................................................................................... 22,636,737 21,871,412 22,684,614 30,421,034 37,984,627 42,219,724

United States Government and agency securities-total....................................................

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

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

13,194,506

1,981205

3,237,461

1,383,006

6,592,834

15,496,605

1,857,506

3,427,509

1,751,417

8,460,173

State, county, and municipal obligations.............................................................................

Corporate bonds.................................................................................................................

Other bonds, notes, and debentures..................................................................................

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

2,301,574

15,781,623

3,019,191

2,770,854

16,449,941

3,503,057

Corporate stock-total........................................................................................................

Bank...............................................................................................................................

Other...............................................................................................................................

2,936,515

329,426

2,607,089

3,252,412

364,066

2,888,346

3,417,299

348290

3,069,009

3,630,475

374,851

3,255,624

3,687,733

387,161

3,300,572

3,999,267

409,239

3,590,028

Federal funds sold and securities purchased under agreements to resell................................ 596,255 1,252,753 964,856 897,063 1,322,316 1,880,491

Other loans-total......................................................................................................................

Real estate loans-total........................................................................................................

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 VA.........................................................

Secured by multifamily (5 or more) residential properties:

Insured by Federal Housing Administration.......................................................

Not insured by F H A ...........................................................................................

Secured by other properties.....................................................................................

Loans to domestic commercial and foreign banks.........................................................

Loans to other financial institutions.............................................................................

Loans to brokers and dealers in securities.....................................................................

Other loans for purchasing or carrying securities.........................................................

Loans to farmers (excluding loans on real estate).........................................................

Commercial and industrial loans..................................................................................

Loans to individuals for personal expenditures............................................................

All other loans (including overdrafts).............................................................................

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

11,7282 49

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

48239

11,587,451

11,342,670

20,123,915

1,949245

10,693,613

11,802232

25,275

32,714

0

1,480

1,456

288,976

2,052,147

38,133

75,990,422

72,820,626

854,499

46,364

11,147,343

11221,051

23,393,029

2,428,166

10,874,242

12,855J932

26,955

57,234

0

1,494

918

599,849

2,412,478

70,868

82,307,795

78,739,467

1,117,143

39,101

10,587,327

11,027,870

28,437,445

2,695,114

11,360,282

13,475,185

10,254

56,679

30,000

1,285

1,407

506,372

2,892,234

70,097

Total loans and securities........................................................................................ 84,183,473 88,994,879 91,098,687 102,130,137 115,297,365 126,408,010

168 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Bank premises, furniture and fixtures, and other assets representing bank premises.............

Real estate owned other than bank premises.........................................................................

Investments in subsidiaries not consolidated............................................................................

Other assets..............................................................................................................................

661,118

147,340

59,309

1,078,412

760,289

180,671

64,883

1,164,017

857,879

233,775

82,292

1,263,415

963,664

418,233

94,253

1,479,088

1,063,867

490,059

112,754

1,686,856

1,161,551

444,012

115,357

1,857,963

Total liabilities and surplus accounts............................................................................................. 87,650,051 93,012,515 95,589,401 107,280,765 120,839,827 132,201,371

D eposits-total........................................................................................................................ 80,571,993 84,890,128 86,814,415 98,126,107 110,998,759 121,265,988

Savings and time deposits-total.......................................................................................... 79,781,381 84,008,571 85,904,825 97,133,340 109,895,767 119,734,061

Savings deposits........................................................................................................ 60,573,427 57,591,849 56,497,626 62,050,661 67^95,029

1

70,382,619

Deposits accumulated for payment of persona! loans................................................... 25 476 295 430 19

Fixed maturity and other time deposits................................................................. 19,207,929 26,416,246 29,406,904 35,082,249 42,600,737 49,351,423

Demand deposits-total..................................................................................................... 790,612 881,557 909,590 992,767 1,102,992 1,531,927

Miscellaneous liabilities-total.................................................................................................. 1,114,469 1,609,538 1,952,443 1,815,359 1,865,047 2,125,609

Securities sold under agreements to repurchase................................................................. 22,757 26,089 217,561 108,715 69,118 169,166

Other borrowings................................................................................................................ 98,980 445,901 667,256 465,279 356,329 483,710

Other liabilities................................................................................................................... 992,732 1,137,548 1,067,626 1,241,365 1,439,600 1,472,733

Total liabilities........................................................................................................ 81,686,462 86,499,666 88,766,858 99,941,466 112,863,806 123,391,597

Minority interest in consolidated subsidiaries......................................................................... 0 0 0 70 61 61

Surplus accounts-total............................................................................................................. 5,963,589 6,512,849 6,822,543 7,339,229 7,975,960 8,809,713

Capital notes and debentures............................................................................................. 59,372 114,953 169,460 190,279 213,264 353,386

Other surplus accounts........................................................................................................ 5,904,217 6,397,896 6,653,083 7,148,950 7,762,696 8,456,327

PERCENTAGES

Of total assets:

Cash and balances with other banks....................................................................................... 1.7 2.0 2.1 2.0 1.8 1.7

U.S. Government and agency securities................................................................................. 7.3 6.4 6.2 8.8 10.9 11.7

Other securities........................................................................................................................ 18.5 17.1 17.5 19.5 20.5 20.2

Loans (including federal funds sold and securities purchased under agreements to resell). . . 70.2 72.2 71.6 66.8 64.0 63.7

Other assets.............................................................................................................................. 2.2 2.3 2.5 2.8 2.8 2.7

Total surplus accounts............................................................................................................. 6.8 7.0 7.1 6.8 6.6 6.7

Of total assets other than cash and U.S. Government and agency securities:

Total surplus accounts............................................................................................................. 7.5 7.6 7.8 7.7 7.6 7.7

Number of banks........................................................................................................................... 326 322 320 329 329 323

ASSETS AND LIABILITIES OF BANKS 169

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 112. PERCENTAGES OF ASSETS, LIAB ILITIES, AND EQ UITY CAPITAL OF INSURED CO M MERCIAL BANKS OPERATING TH RO UG HO UT 1977

IN THE UN ITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1977

BANKS GROUPED BY AMOUNT OF ASSETS

Banks with assets ofAsset, liability, or equity capital item

All

banks

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Total assets..................................................................... 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Cash and due from banks............................................ 14.2 11.0 9.8 9.6 9.7 10.0 11.4 13.0 14.1 15.4 19.0

U.S. Treasury securities1.............................................. 8.4 15.5 13.3 11.2 10.4 9.9 10.1 9.5 8.7 8.1 5.5

Obligations of other U.S. Government agencies

and corporations1................................................... 3.2 8.0 7.1 6.0 5.0 4.6 4.4 3.6 2.9 2.2 1.4

Obligations of States and political subdivisions1 ............ 10.0 4.5 8.0 11.2 13.1 13.8 12.9 11.8 11.1 9.2 6.2

Other securities1 ........................................................ .6 .7 .5 .6 .6 .7 .8 .9 1.0 .7 .3

Federal funds sold and securities purchased

under agreements to resell....................................... 4.3 7.3 5.7 4.9 4.0 3.5 3.9 4.8 5.7 5.3 3.5

Loans, net.................................................................. 52.0 50.8 53.1 53.8 54.0 54.1 52.8 52.4 51.8 50.8 50.5

Unearned income on loans....................................... 1.3 1.4 1.5 1.7 1.9 1.9 1.8 1.6 1.4 1.0 .6

Reserve for possible loan losses................................ .5 .3 .4 .4 .4 .5 .5 .5 .5 .5 .7

Loans, gross................................................................ 53.8 52.5 55.0 55.9 56.3 56.5 55.1 54.5 53.7 52.3 51.8

Real estate loans................................................... 15.7 13.4 16.5 19.4 21.1 21.1 20.3 18.5 16.3 13.7 10.1

Loans to financial institutions.................................. 3.3 .2 .2 .2 .2 .4 .9 1.3 2.3 4.5 7.0

Loans to purchase or carry securities......................... 1.6 .2 .2 .2 .2 .4 .5 1.2 1.2 1.5 3.5

Loans to farmers (excluding loans on real estate). . . . 2.3 16.9 13.8 9.1 5.1 2.6 1.3 1.2 .8 .7 .8

Commercial and industrial loans............................. 17.3 7.1 8.7 10.2 11.6 14.2 15.8 15.6 17.3 19.0 22.3

Instalment loans for personal expenditures............... 9.9 10.8 11.6 12.5 13.6 13.6 12.7 13.0 11.8 8.8 5.3

Single payment loans for personal expenditures. .... 2.4 3.0 3.2 3.5 3.7 3.5 2.8 2.9 2.8 2.3 1.0

All other loans........................................................ 1.3 .9 .8 .8 .8 .7 .8 .8 1.2 1.8 1.8

All other assets........................................................... 7.3 2.2 2.5 2.7 3.2 3.4 3.7 4.0 4.7 8.3 13.6

Total liabilities and equity capital....................................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Deposits-total........................................................... 81.6 88.8 90.0 90.5 90.2 89.6 88.1 86.2 82.5 77.8 72.3

Demand........................................................... 33.3 36.3 32.3 31.4 30.8 31.0 31.7 33.9 35.3 34.3 34.8

Time and savings.............................................. 48.3 52.5 57.7 59.1 59.4 58.6 56.4 52.3 47.2 43.5 37.5

Individuals, partnerships, and corporations-demand. . 25.4 31.9 27.7 26.8 26.5 26.6 26.2 26.9 27.2 26.6 22.1

Individuals, partnerships, and corporations-time

and savings........................................................ 41.8 46.1 51.5 53.1 53.3 52.0 49.1 44.8 40.6 37.3 31.1

U.S. Government................................................... .7 .4 .7 .9 .8 .7 .6 .7 1.0 .8 .6

States and political subdivisions................................ 6.7 9.6 9.1 8.6 8.5 8.6 9.0 8.8 8.3 6.8 2.9

Foreign governments and official institutions............ .8 (3) (3) (3) (3) (3) (3) .1 (3) .2 2.8

Commercial banks................................................. 5.0 .2 .2 .2 .2 .7 2.2 3.8 4.2 5.1 11.1

Certified and officers'checks.................................. 1.2 .6 .8 .9 .9 1.0 1.0 1.1 1.2 1.0 1.7

Federal funds purchased and securities sold under

agreements to repurchase....................................... 7.4 .2 .4 .4 .7 1.4 3.0 5.1 8.2 11.3 13.0

Other liabilities for borrowed money............................. .5 (3) (3) (3) (3) .1 .1 .1 .5 .7 1.2

All other liabilities2...................................................... 3.0 .4 .5 .7 1.1 1.2 1.3 1.3 1.6 3.1 6.2

Subordinated notes and debentures................................ .6 .1 .1 .2 .3 .3 .6 .5 .6 .8 .5

Equity capital............................................................. 6.9 10.5 9.0 8.1 7.7 7.4 6.9 6.8 6.6 6.3 6.8

Number of banks............................................................. 14,255 1,101 2,546 4,902 2,977 1,485 822 157 124 120 21

1 Securities held in trading accounts are included in “ Other assets."

includes minority interest in consolidated subsidiaries.

3 Less than 0.05 percent.

Note: For income and expense data by size of bank, see tables 118 and 119. Dollar amounts of assets and liabilities (in $000) of insured commercial banks by size of bank are contained in Assets and Liabilities-Commercial and Mutual Savings Banks (with 

1977 Report of Income), December 31, 1977.

170 FEDERAL DEPOSIT INSURANCE CO RPO RATIO N

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 113. PERCENTAGES OF ASSETS AND LIABILITIES OF INSURED M UTUAL SAVINGS BANKS OPERATING THROUGHOUT 1977 IN 

THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1977 

BANKS GROUPED BY AMOUNT OF ASSETS

Banks with assets o fAsset, liability, or surplus account item All

banks1

Less 

than 

$10.0 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1 billion 

or 

more

Total assets................................................................................... 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Cash and due from banks....................................................... 1.7 3.0 2.4 2.0 1.6 1.7 1.6 1.5 1.8

United States Government and agency securities................... 11.7 8.0 14.5 9.7 10.0 10.6 14.0 13.1 11.3

Corporate bonds.................................................................... 12.4 6.1 6.7 7.1 6.7 7.6 8.9 10.7 15.5

State, county, and municipal obligations................................. 2.1 (2) 1.0 1.0 .7 1.4 1.4 2.0 2.5

Other securities........................................................................ 5.7 4.0 5.4 5.7 5.5 5.3 4.3 5.3 6.2

Federal funds sold and securities purchased under

agreements to resell............................................................. 1.4 3.0 2.3 1.5 1.6 1.3 2.1 1.3 1.4

Other loans and discounts....................................................... 62.3 73.3 66.4 70.8 71.6 69.5 65.3 63.3 58.7

Real estate loans-total....................................................... 59.6 64.3 61.7 65.6 66.5 65.9 62.5 60.6 56.4

Construction loans....................................................... .8 .8 .5 1.5 1.7 1.5 1.4 .7 .6

Secured by farmland..................................................... (2) .5 .6 .2 .2 .1 (2) (2) (2)

Secured by residential properties:

Insured by FHA....................................................... 10.0 .6 1.5 1.7 3.4 4.5 9.4 10.7 12.0

Guaranteed by V A .................................................. 8.3 .6 4.3 3.4 4.5 4.8 9.4 8.7 9.3

Not insured or guaranteed by FHA or VA.............. 30.1 56.5 47.7 52.4 50.1 47.6 35.4 30.7 22.7

Secured by other properties......................................... 10.2 5.4 7.1 6.3 6.6 7.5 6.9 9.8 11.9

Commercial and industrial loan s....................................... .4 .8 .4 .2 .3 .2 .1 .3 .5

Loans to individuals for personal expenditures................ 2.2 8.1 4.2 4.9 4.6 3.3 2.5 2.4 1.5

All other loans including overdrafts.................................... .1 (2) .2 .1 .2 .1 .1 (2) .2

Other assets............................................................................. 2.7 2.6 1.2 2.2 2.4 2.6 2.4 2.9 2.7

Total liabilities and surplus accounts............................................ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Deposits-total........................................................................ 91.7 91.2 91.0 91.4 91.4 91.7 91.9 91.6 91.8

Savings deposits.................................................................. 53.2 65.2 53.8 59.1 55.6 54.7 54.4 56.5 51.1

Deposits accumulated for payment of personal loans. . . . (2) (2) (2) (2) (2) (2) (2) (2) (2)

Fixed maturity and other time deposits............................ 37.3 24.9 35.9 31.4 34.9 35.9 36.4 33.7 39.7

Demand deposits................................................................ 1.2 1.1 1.3 .9 .9 1.0 1.1 1.5 1.1

Miscellaneous liabilities............................................................. 1.6 .4 1.4 .9 1.1 1.4 1.2 1.5 1.8

Surplus accounts..................................................................... 6.7 8.3 7.6 7.7 7.4 6.9 6.9 6.9 6.4

Capital notes and debentures............................................ .3 1.0 .2 .1 .2 .1 .1 .2 .4

Other surplus accounts....................................................... 6.4 7.3 7.4 7.5 7.3 6.8 6.8 6.7 6.0

Number of banks........................................................................... 323 4 11 33 80 96 26 39 34

1 Dollar amounts of assets and liabilities (in $000) of insured mutual savings banks are shown in Assets and Liabilities-Commercial and Mutual Savings Banks (with 1977 Report of Income), December 31,1977.

2Zero or less than 0.05 percent.

ASSETS AND LIABI LITIES OF BANKS

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Federal Reserve Bank of St. Louis
Table 114. D IS T R IB U T IO N OF INSU RED C O M M E R C IA L BANKS IN TH E U N IT E D STATES (STATES A N D O THER A R E A S ),

DECEMBER 31, 1977

BANKS GROUPED ACCORDING TO AMOUNT OF ASSETS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS

Banks with assets o fRatios 

(In percent)

All

banks

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Ratios of cash and due from banks to total assets o fLess than 5 . 0 ............................................................. 1,062 100 241 410 190 87 26 1 3 4 0

5.0 to 7.49................................................................... 3,631 243 704 1,394 793 338 134 17 7 1 0

7.5 to 9.99................................................................... 3,953 268 657 1,378 905 459 222 32 20 12 0

10.0 to 12.49............................................................. 2,607 211 454 815 545 285 201 41 27 25 3

12.5 to 14.99............................................................. 1,446 124 234 444 277 183 112 21 25 19 7

15.0 to 17.49............................................................. 735 90 115 217 132 69 56 18 16 19 3

17.5 to 19.99............................................................. 404 47 70 106 65 35 30 13 15 22 1

20.0 to 24.99 ............................................................. 356 53 69 107 52 19 22 9 6 15 4

25.0 to 29.99 ............................................................. 126 30 27 26 12 8 15 3 1 3 1

30.0 or more................................................................ 92 31 22 14 9 2 6 2 4 0 2

Ratios of U.S. Treasury securities to total assets o fLess than 5 . 0 ............................................................. 3,260 232 497 1,171 717 350 179 41 26 36 11

5.0 to 9.99................................................................... 4,362 242 686 1,444 965 532 305 64 64 51 9

10.0 to 14.99............................................................. 3,027 224 512 1,029 668 330 204 24 15 20 1

15.0 to 19.99............................................................. 1,705 162 364 585 349 148 66 14 10 7 0

20.0 to 24.99 ............................................................. 924 109 230 316 151 64 37 8 6 3 0

25.0 to 29.99 ............................................................. 481 73 126 166 71 24 16 2 1 2 0

30.0 to 34.99 ............................................................. 272 44 77 91 24 23 8 3 1 1 0

35.0 to 39.99 ............................................................. 161 30 41 58 17 10 5 0 0 0 0

40.0 to 44.99 ............................................................. 102 34 26 27 9 2 2 1 1 0 0

45.0 to 49.99 ............................................................. 50 22 10 11 4 2 1 0 0 0 0

50.0 or more................................................................ 68 25 24 13 5 0 1 0 0 0 0

172 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Ratios of obligations of States and political subdivisions

to total assets ofZ e ro ...........................................................................

More than 0.0, but less than 1.0.................................

1.0 to 2.49...................................................................

2.5 to 4.99...................................................................

5.0 to 7.49...................................................................

7.5 to 9.99...................................................................

10.0 to 12.49.............................................................

12.5 to 14.99.............................................................

15.0 to 17.49.............................................................

17.5 to 19.99.............................................................

20.0 to 24.99 .............................................................

25.0 or more....................................................... . . .

Ratios of net loans to total assets o fLess than 20 0

20.0 to 24.99

25.0 to 29.99

30.0 to 34.99

35.0 to 39.99

40.0 to 44.99

45.0 to 49.99

50.0 to 54.99

55.0 to 59.99

60.0 to 64.99

65.0 to 69.99

70.0 to 74.99

75.0 or more

Ratios of total demand deposits to total deposits o fLess than 25.0

25.0 to 29.99

30.0 to 34.99

35.0 to 39.99

40.0 to 44.99

45.0 to 49.99

50.0 to 54.99

55.0 to 59.99

60.0 to 64.99

65.0 to 69.99

70.0 to 79.99

80.0 to 89.99

90.0 or more

1,186 370 401 339

518 151 139 132

550 158 138 159

1,144 160 338 356

1,400 115 374 457

1,854 87 376 706

2,079 59 304 800

2,008 42 214 688

1,486 20 121 504

953 18 82 326

908 12 78 331

326 5 28 113

174 64 41 38

143 38 28 42

293 53 65 109

481 66 98 179

822 94 160 280

1,292 123 271 428

1,786 135 329 573

2,431 148 371 770

2,627 147 389 883

2,314 147 395 805

1,346 104 264 534

519 45 121 213

184 33 61 57

2,091 87 379 791

2,620 146 448 963

2,950 213 547 1,031

2,461 203 436 798

1,747 160 286 555

1,157 105 230 368

631 79 112 193

299 49 51 105

161 31 44 46

89 20 21 22

78 31 17 20

42 16 9 7

86 57 13 12

56 16 4 0 0 0 0

50 24 17 3 1 1 0

49 14 18 4 5 4 1

149 69 35 10 6 14 7

243 83 65 15 17 23 8

358 151 90 25 26 31 4

460 232 144 31 24 24 1

557 293 148 32 23 11 0

411 257 140 14 10 9 0

283 148 79 12 4 1 0

258 148 65 9 5 2 0

106 50 19 2 3 0 0

22 4 4 1 0 0 0

16 10 7 0 1 1 0

41 17 6 2 0 0 0

64 41 23 5 3 2 0

147 66 42 11 9 11 2

247 102 81 9 11 13 7

397 175 104 27 23 21 2

541 322 176 42 30 31 0

604 321 192 32 28 23 8

524 272 126 17 15 11 2

256 119 52 9 3 5 0

100 30 8 1 0 1 0

21 6 3 1 1 1 0

464 236 112 9 9 4 0

623 273 130 26 3 8 0

613 320 184 18 11 10 3

513 279 159 25 27 19 2

372 185 106 30 28 21 4

214 105 68 25 16 23 3

108 46 40 18 15 18 2

41 21 11 2 7 9 3

12 9 6 2 5 6 0

10 7 0 1 3 2 3

4 2 4 0 0 0 0

5 1 3 0 0 0 1

1 1 1 1 0 0 0

ASSETS AND LIABI LITIES OF BANKS 173

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Federal Reserve Bank of St. Louis
Table 114. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1977— C O N TIN U E D

BANKS GROUPED ACCORDING TO AMOUNT OF ASSETS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS

Banks with assets of—

Ratios 

(In percent)

All

banks

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Ratios of total equity capital to total assets o fLess than 5 .0 ............................................................. 426 6 21 118 91 63 75 19 16 13 4

5.0 to 5.99.................................................................. 1,246 27 100 364 299 184 154 39 37 37 5

6.0 to 6.99.................................................................. 2,802 98 368 920 698 387 221 35 33 37 5

7.0 to 7.99.................................................................. 3,483 174 564 1,242 816 405 203 29 23 24 3

8.0 to 8.99.................................................................. 2,562 188 492 973 541 243 95 18 6 4 2

9.0 to 9.99.................................................................. 1,449 140 344 539 269 102 37 8 5 4 1

10.0 to 10.99............................................................. 851 109 210 318 140 45 22 5 1 0 1

11.0 to 11.99............................................................. 527 96 145 184 64 26 10 0 1 1 0

12.0 to 12.99............................................................. 305 59 97 105 25 12 3 3 1 0 0

13.0 to 14.99............................................................. 306 63 112 88 29 10 3 1 0 0 0

15.0 to 16.99............................................................. 144 54 54 30 3 3 0 0 0 0 0

17.0 or more................................................................ 311 183 86 30 5 5 1 0 1 0 0

Ratios of total equity capital to total assets other 

than cash and due from banks, U S. Treasury 

securities, and obligations of other U.S. 

Government agencies and corporations o fLess than 7 . 5 ............................................................. 1,168 11 60 336 289 187 168 37 39 35 6

7.5 to 9.99................................................................... 4,862 145 578 1,597 1,262 697 378 68 63 65 9

10.0 to 12.49............................................................. 4,070 230 739 1,554 903 400 181 35 12 12 4

12.5 to 14.99............................................................. 1,935 182 465 749 328 117 66 11 7 8 2

15.0 to 17.49............................................................. 988 147 310 342 117 46 21 4 1 0 0

17.5 to 19.99............................................................. 463 94 152 152 40 18 5 1 1 0 0

20.0 to 22.49 ............................................................. 280 73 90 87 19 10 1 0 0 0 0

22.5 to 24.99 ............................................................. 156 51 60 33 10 1 0 0 1 0 0

25.0 to 29.99 ............................................................. 208 81 71 38 8 7 2 1 0 0 0

30.0 to 34.99 ............................................................. 87 38 37 10 1 1 0 0 0 0 0

35.0 to 39.99 ............................................................. 62 44 10 4 2 0 2 0 0 0 0

40.0 or more................................................................ 133 101 21 9 1 1 0 0 0 0 0

Number of banks............................................................. 14,412 1,197 2,593 4,911 2,980 1,485 824 157 124 120 21

174 FEDERAL DEPOSIT INSURANCE CORPORATION

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INCOME OF INSURED BANKS

Table 115. Income of insured commercial banks in the United States (States and other areas), 1972-1977

Table 116. Ratios of income of insured commercial banks in the United States (States and other areas) 

1972-1977

Table 117. Income of insured commercial banks in the United States (States and other areas), 1977

Banks grouped by class o f bank

Table 118. Income of insured commercial banks operating throughout 1977 in the United States (States 

and other areas)

Banks grouped by amount of assets

Table 119. Ratios of income of insured commercial banks operating throughout 1977 in the United States 

(States and other areas)

Banks grouped according to amount o f assets

Table 120. Income of insured mutual savings banks in the United States (States and other areas) 

1972-1977

Table 121. Ratios of income of insured mutual savings banks in the United States (States and other areas) 

1972-1977

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

Banks having assets o f $25 m illio n o r m ore are required to re port consolidated incom e accounts on an accrual basis. Where the results w o u ld n o t 

be sig n ific a n tly d iffe re n t, certain accounts may be reported on a cash basis. 

Sm aller banks co n tin u e to have the o p tio n o f su b m ittin g th e ir reports on a 

cash o r an accrual basis, except th a t unearned incom e on loans, and incom e 

taxes, m ust be reported on a c u rre n t accrual basis.

P rior to 1976, insured banks were required to subm it a consolidated Rep o rt o f Incom e, in clu d in g all m a jo rity-o w n e d dom estic premises subsidiaries

and other nonbank subsidiaries th a t were significant according to certain 

tests. Beginning in 1976, the consolidated incom e re port must include also 

all m a jo rity-o w n e d Edge A c t and Agreem ent C orporations, and all m a jo rityow ned significant foreign subsidiaries and associated com panies to the extent 

th a t the incom e o f such subsidiaries is re m ittable.

Banks were required to re p o rt incom e and expenses more fre q u e n tly beginning in 1976. Banks having assets o f $300 m illio n o r m ore subm it quarterly 

statem ents and o th e r insured banks sub m it sem iannual reports. In this report, 

incom e data are included fo r all insured banks operating at the end o f the 

respective years, unless indicated otherw ise. In a d d itio n , when appropriate, 

adjustm ents have been made fo r banks in operation du ring part o f the year 

b u t n o t at the end o f the year.

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Federal Reserve Bank of St. Louis
Several changes were made in 1976 in the fo rm a t o f the incom e reports 

sub m itted by banks, m a in ly involving a d d itio n a l separate items on the face 

o f the report. Those changes are indicated in several historical data tables to 

fo llo w , w ith e xp la n a to ry notes where necessary.

In 1976, the m ethod used fo r d e te rm in in g "p ro visio n fo r possible loan 

losses" was changed sig n ifica n tly. Also, beginning in 1976, "m e m orand a" 

data in table 115 and elsewhere on charge-offs and recoveries to loan loss 

reserves include also the gross charge-offs and recoveries on loans by banks 

not on a reserve basis o f accounting (see pp. 177).

"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 tax lia b ility th a t a bank w o u ld incur if its taxes were 

based solely on operating incom e and expenses; th a t is, if there were no 

security gains or losses, no e xtra o rd in a ry item s, etc. The am ount reported by 

each bank consists o f Federal, State and local, and foreign incom e taxes, 

estim ated using the tax rates applicable to the re portin g bank. Income taxes 

c u rre n tly payable, and deferred incom e taxes, are included.

The m em oranda item "to ta l provision fo r incom e taxes" includes ap plicable taxes on operating incom e, applicable taxes on securities gains and 

losses and e xtra o rd in a ry item s, and tax effects on differences between the 

provision fo r loan losses charged to operating expense and transfers to the 

reserve fo r bad de bt losses on loans. F o r banks generally the transfers to 

reserve fo r bad debts have exceeded the provision fo r loan losses and conseq u e n tly have tended to reduce tax lia b ility . (Since enactm ent of the Tax 

R eform A c t o f 1969, a d 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.)

Mutual savings banks

Fo r a discussion o f the re port o f incom e and expenses fo r m utual savings 

banks p rio r to 1971, see the 1951 Annual Report, pp. 50-52.

B eginning Decem ber 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, in clu d in g all dom estic branches, dom estic bank premises 

subsidiaries, and o th e r sig n ifica n t no nbanking dom estic subsidiaries (see page 

175).

Beginning in 1972, banks w ith to ta l resources o f $25 m illio n or more are 

required to prepare th e ir reports on th e basis o f accrual accounting. A ll

banks are required to report incom e taxes on an accrual basis.

Under operating incom e, certain incom e fro m securities fo rm e rly in the 

"o th e r" category are shown separately beginning in 1971. Incom e fro m U.S. 

Treasury securities is com bined w ith incom e fro m U.S. G overnm ent agency 

and co rp o ra tio n securities. Som ewhat few er item s are detailed under operating expenses. Beginning in 1971, actual net loan losses (charge-offs less 

recoveries) are included as an expense item in the operating section o f the 

report (see discussion below ). In 1970 and p rio r years (table 120), the 

am ounts shown fo r this expense item were "recoveries credited to valuation 

adjustm ent provisions on real estate mortgage loans" less the "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 of the re port were condensed in 1971, w ith 

realized gains and losses on securities, mortgage loans, and real estate reported " n e t" rather than in separate sections and captions as before. Detailed data fo rm e rly reported on reconcilem ent o f valuation adjustm ent 

provisions were alm ost e n tire ly elim inated, except fo r a sim ple reconciliation 

o f surplus.

Sources of data

National banks and State banks in the D is tric t o f C olum bia n o t members 

o f the Federal Reserve System : O ffice o f th e C o m p tro lle r o f the Currency.

State bank members o f the Federal Reserve System : Board o f Governors 

o f the Federal Reserve System.

O ther insured banks: Federal Deposit Insurance C orporation.

REPORTING OF LOSSES AN D RESERVES

FOR LOSSES ON LOANS,

1948 - 1977

Commercial banks

Use o f the reserve m ethod o f loan accounting was greatly encouraged 

when, in 1947, the Internal Revenue Sen/ice 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 

subm itted 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

176 FEDERAL DEPOSIT INSURANCE C O R P O R A T IO N

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banks using the reserve m e thod , transfers fro m loan loss reserves. D irect 

charge-offs and losses on loans, and transfers to reserves were included to ­

gether in non-operating expenses. Banks using the reserve m ethod were no t 

required to re p o rt 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 , a fte r allowance fo r loan loss reserves. 

Beginning w ith the June 30, 1948 re port, banks were required to re p o rt 

gross loans, w ith to ta l valua tio n reserves, those set up pursuant to Internal 

Revenue Service regulations, and o th e r reserves shown separately. However, 

instalm ent loans o rd in a rily co n tin u e d to be reported net if the instalm ent 

paym ents were applied d ire c tly to the reduction of the 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 

item s 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 mem oranda 

section beginning in 1948, as were the am ounts transferred to and fro m 

reserves d u ring the year. Each o f these debits and credits was segregated as 

to reserves set up pursuant to IRS regulations, and other reserves. Losses and 

recoveries, and transfers to and fro m reserves, b u t n o t the specific tax-related 

transfers, were separately re ported in the C orporation's published statistics.

Several im p o rta n t revisions were made in the fo rm a t o f the incom e repo rts o f com m ercial banks in 1969. A new entry en titled "provisio n fo r loan 

losses" was included un der operating expenses. This item included actual 

loan losses (charge-offs less recoveries) during the year or, at the o p tio n o f 

the bank, an am ount derived by ap plying the average loan loss percentage fo r 

the five m ost recent years to the average am ount o f loans during the c u rre n t 

year. Banks had the o p tio n also o f providing a larger am ount in any year 

than the am ount indicated by the fo rm u la . Beginning in 1976, required use

o f the form ulas was discontinued. Banks are instru cted to expense an 

am ount w hich in the judg m ent o f bank management w ill m aintain an adequate reserve, and to provide a fu lly reviewable record fo r bank exam ination 

purposes o f the basis fo r the de te rm in a tio n o f the loan-loss provision.

A lso beginning in 1976, banks no t on a reserve basis re port gross chargeoffs and recoveries; the d iffe re n c e -n e t losses— is reported as the "p ro visio n 

fo r loan losses" in operating expenses. Banks co n tin u e to report all transfers 

to and fro m reserves in the m em oranda section o f the incom e statem ent, b u t 

this detailed in fo rm a tio n is not included in the tables to fo llo w .

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 reportin g fo rm was revised extensively in 1951, these 

various nonoperating expenses were item ized, and a memoranda section was 

added to show also the losses and recoveries in reserve accounts. "R ea lized " 

losses (and recoveries) fo r w h ich no provision had been made, and transfers 

were included in the nonoperating expense (incom e) section, w hile dire 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 llo w in g 1951, the loan loss section o f the reports o f con ditio n and 

incom e and expense remained unchanged u n til 1971. Beginning in 1971, the 

incom e re port was revised in a manner sim ila r to changes in 1969 applicable 

to com m ercial banks, to show actual net loan losses as operating expenses. 

(M utual savings banks d id n o t have the o p tio n available to com m ercial banks 

o f re p o rtin g losses based on recent years' average experience.) A t the same 

tim e, all valua tio n reserves were merged in to surplus accounts on statements 

o f c o n d itio n sub m itted to the Federal supervisory agencies.

INCOME OF INSURED BANKS 177

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Federal Reserve Bank of St. Louis
Table 115. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1972-1977

(Amounts in thousands of dollars)

Income item 1972 1973 1974 1975 19 761 19771

Operating income-total................................................................................

Interest and fees on loans........................................................................

40,247,555

25,630,498

53,036,327

35,375,638

68,160,779

47,138,740

66,558,502

43,379,504

80,663,853

51,645,260

4,486,655

1,984,757

5,976,210

2,415,164

5,134,676

751,007

105,046

534,254

1,794,732

1,635,463

2,182,927

2,017,702

90,357,541

58,990,506

4,887,917

2,476,313

6,394,514

2,469,463

5,365,327

859,077

109,595

699,273

1,980,395

1,806,509

2,408,698

1,909,954

Income on federal funds sold and securities purchased under

agreements to resell in domestic offices........... ................................

Interest on U.S. Treasury securities3 ........................................................

Interest on obligations of other U.S. Government agencies and

corporations3 ......................................................................................

Interest on obligations of States and political subdivisions of the U.S.3 .

Interest on other bonds, notes, and debentures3 ....................................

Dividends on stock...................................................................................

1,026,550

3,396,365

1,144,761

3,493,981

322,239

2,486,695

3,465,192

1,472,467

3,864,785

371,987

3,712,304

3,441,273

2,018,561

4,453,876

467,873

2,294,621

4,440,640

2,348,937

4,918,518

533,244

Income from fiduciary activities.............................................................

Service charges on deposit accounts in domestic offices.........................

Other service charges, commissions, and fees..........................................

Other income3 .........................................................................................

Operating expenses-total..............................................................................

Salaries and employee benefits................................................................

Interest on time certificates of deposit of $100,000 or more issued 

by domestic offices4 ...........................................................................

1,366,455

1,262,022

1,083,104

1,521,580

1,459,879

1,326,992

1,251,651

1,961,041

1,506,206

1,459,858

1,408,525

2,553,563

1,601,968

1,555,360

1,653,549

3,832,161

32,997,271

9,085,213

44,330,459

10,127,808

58,910,355

11,586,433

57,582,040

12,686,720

70,750,168

14,752,297

7,111,054

8,749,673

19,143,238

3,311,741

667,197

344,952

3,262,005

497,201

2,764,804

1,721,382

3,691,378

8,492,452

78,791,583

16,346,067

6,763,105

10,215,971

21,832,936

4,542,669

818,374

392,274

3,603,117

553,996

3,049,121

1,930,775

3,301,041

9,599,250

Interest on deposits in foreign offices2.....................................................

Interest on other deposits........................................................................

Expense of federal funds purchased and securities sold under

agreements to repurchase in domestic offices....................................

Interest on other borrowed money..........................................................

Interest on subordinated notes and debentures.......................................

Occupancy expense of bank premises, gross............................................

Less: Rental income...........................................................................

Occupancy expense of bank premises, net..........................................

Furniture and equipment........................................................................

Provision for possible loan losses.............................................................

Other expenses........................................................................................

Income before income taxes and securities gains or losses............................

Applicable income taxes................................................................................

Income before securities gains or losses........................................................

Securities gains or losses, gross.....................................................................

Applicable income taxes...........................................................................

Securities gains or losses, n e t...................................................................

Income before extraordinary items................................................................

Extraordinary items, gross..............................................................................

Applicable income taxes...........................................................................

Extraordinary items, net...........................................................................

Net income...................................................................................................

13,844,020

1,429,171 

115,240 

213,532 

1,926,695 

343,157

1,583,538

1,087,844 

973,238 

4,665,475

19,834,817

3,899,016

503,941

254,458

2,152,621

369,665

1,782J956

1,201,241

1,264,695

5,461,527

27,888,772

5,985,504

917,638

283,203

2,438,528

386,183

2,052,345

1,360,721

2,286,132

6,549,607

26,245,936

3,322,993

377,195

294.098 

2,754,742

430.098

2,324,644

1,532,739 

3,612,410 

7,185,305

7,250,284

1,707,495

5,542,789

166,730

74,274

92,456

5,635,245

23,953

4,800

19,153

8,705,868

2,121,100

6,584,768

-73,458

-46,323

-27,135

6,557,633

30,817

9,256

21,561

9,250,424

2,084,028

7,166,396

-161,247

-74,195

-87,052

7,079,344

17,877

5,957

11,920

8,976,462

1,792,696

7,183,766

34,376

-2,690

37,066

7,220,832

46,823

13,044

33,779

9,913,685

2,290,772

7,622,913

312,267

118,233

194,034

7,816,947

28,104

1,774

26,330

11,565,958

2,831,871

8,734,087

141,674

43,189

98,485

8,832,572

55,082

8,249

46,833

5,654,398 6,579,194 7,091,264 7,254,611 7,843,277 8,879,405

178 FEDERAL DEPOSIT INSURANCE CORPORATION

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Memoranda

Dividends declared on equity capital-to tal.................................................

Cash dividends declared on common stock............................................

Cash dividends declared on preferred stock............................................

2,196,868

2,193,052

3,816

2,429,330

2,425,633

3,697

2,768,104

2,765,674

2,430

3,032,444

3,030,230

2,214

3,036,222

3,033,628

2,594

3,304,789

3,301,525

3,264

Provision for income taxes-total..................................................................

U.S. Federal income taxes.......................................................................

U.S. State and local income taxes............................................................

Foreign income taxes2 .............................................................................

1,598,869

1,288,725

310,144

1,715,439

1,336,317

379,122

1,759,739

1,357,934

402,345

1,727,041

1,225,927

501,114

2,410,779

1,371,638

491,712

547,429

-3,503,246 

687,401

-4,190,647

2,883,309

1,773,219

525,833

584,257

-2,797,105

813,900

-3,611,005

Net loan losses or recoveries-total...............................................................

Recoveries on loans...................................................................................

L osses on loans........................................................................................

-887,326 

363,663

- 1,250,989

-1,159,187

388,846

-1,548,033

-1,956,931

461,350

-2,418,281

-3,242,830

547,380

-3,790,210

Trading account income, net2....................................................................... 717,655 421,148

Average assets, liabilities, and equity capital5

Assets-total...................................................................................................

Cash and due from banks.......................................................................

U.S. Treasury securities3..........................................................................

Obligations of States and political subdivisions3 ...................................

Other securities3 .....................................................................................

Net loans6 ................................................................................................

All other assets........................................................................................

679,113,973

102,969,933

61,978,490

84,210,396

23,863,051

376,543,347

29,548,756

776,702,572

110,168,143

58,603,925

89,241,780

29,355,715

453,238,907

36,094,102

871,394,495

122,224,773

52,822,043

94,524,535

35,256,603

519,572,131

46,994,410

924,946,738

126,838,007

65,992,148

98,953,279

39,203,344

536,061,723

57,898,237

1,123,469,176

194,312,500

88,520,749

102,733,896

51,110,347

632,696,842

54,094,842

1,249,961,111

218,357,890

96,664,647

108,429,263

54,293,953

709,816,228

62,399,129

Liabilities and equity capital-total...............................................................

Total deposits...........................................................................................

Demand deposits................................................................................

Time and savings deposits..................................................................

Deposits in foreign offices..................................................................

679,113,973

568,240,268

271,122,732

297,117,536

776,702,572

640,806,208

293,708,282

347,097,926

871,394,495

710,029,868

307,363,186

402,666,682

924,946,738

756,948,586

313,836,391

443,112,195

1,123,469,176

944,238,914

320,488,016

474,499,317

149,251,581

4,865,972

105,647,909

68,716,381

1,249,961,111

1,043,478,575

347,903,682

519,939,386

175,635,507

5,500,132

125,239,154

75,743,250

Subordinated notes and debentures..........................................................

Other borrowings and all other liabilities.................................................

Total equity capital..................................................................................

3,546,497

61,179,885

46,147,323

4,044,715

80,677,846

51,173,803

4,204,891

100,573,737

56,585,999

4,328,561

101,918,202

61,751,389

Number of employees on payroll (end of period)......................................... 1,025,997 1,093,616 1,160,585 1,226,415 1,255,025 1,320,598

Number of banks (end of period).................................................................. 13,733 13,976 14,228 14,384 14,411 14,412

1 Data are from fully consolidated reports of income, including domestic and foreign offices (see page 175).

2Figures not available before 1976.

Securities held in trading accounts are included in "All other assets"; income from these securities is included in "Other income."

included in "Interest on other deposits" before 1976.

5Averages of amounts reported at beginning, middle, and end of year. 1976 and 1977 averages are based on consolidated reports, domestic and foreign.

6For years before 1976, data are gross loans (see page 152 and table 109). Includes federal funds sold.

INCOME OF INSURED BANKS 179

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Federal Reserve Bank of St. Louis
Table 116. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1972-1977

Income item 1972 1973 1974 1975 19761 19771

Amounts per $100 of operating income

Operating incom e-total................................................................................. $100.00 $100.00 $100.00 $100.00 $100.00 $100.00

Interest and fees on loans2........................................................................ 66.23 71.39 74.60 68.62 66.49 68.03

5.56 5.41

Interest on U.S. Treasury securities.......................................................... 8.44 6.53 5.05 6.67 7.41 7.08

Interest on obligations of States and political subdivisions of the U.S.. . 8.65 7.29 6.53 7.39 6.37 5.94

Interest and dividends on other securities............................................... 3.64 3.48 3.65 4.33 4.05 3.80

Income from fiduciary activities............................................................. 3.40 2.75 2.21 2.41 2.23 2.19

Service charges on deposit accounts in domestic offices......................... 3.14 2.50 2.14 2.34 2.03 2.00

Other charges, commissions, and fees........................................................ 2.67 2.36 2.07 2.48 2.71 2.67

Other income............................................................................................ 3.78 3.70 3.75 5.76 3.16 2.88

Operating expenses-total..................................................................... 81.98 83.58 86.43 86.51 87.71 87.20

Salaries and employee benefits................................................................ 22.57 19.10 17.00 19.06 18.29 18.09

Interest on deposits in domestic offices.................................................. 34.40 37.40 40.92 39.43 32.55 31.65

10.85 11.31

Interest on other borrowed money4 ........................................................ 4.37 8.78 10.54 6.00 5.36 6.37

Occupancy expense of bank premises, net............................................... 3.93 3.36 3.01 3.49 3.43 3.38

Furniture and equipment........................................................................ 2.70 2.26 2.00 2.30 2.13 2.14

Provision for possible loan losses............................................................. 2.42 2.38 3.35 5.43 4.57 3.65

Other expenses......................................................................................... 11.59 10.30 9.61 10.80 10.53 10.62

Income before income taxes and securities gains or losses............................ 18.02 16.42 13.57 13.49 12.29 12.80

Amounts per $100 of total assets5

Operating incom e-total................................................................................. 5.93 6.83 7.82 7.20 7.18 7.23

Operating expenses-total.............................................................................. 4.86 5.71 6.76 6.23 6.30 6.30

Income before income taxes and securities gains or losses............................ 1.07 1.12 1.06 .97 .88 .93

Net incom e.................................................................................................... .83 .85 .81 .78 .70 .71

Amounts per $100 of total equity capital5

Net incom e.................................................................................................... 12.25 12.86 12.53 11.75 11.41 11.72

Cash dividends declared on common s to c k .................................................. 4.75 4.74 4.89 4.91 4.42 4.36

Net additions to capital from income............................................... .. 7.49 8.11 7.64 6.84 6.99 7.36

Special ratios5

Income on loans per $100 of loans2 ............................................................. 7.08 8.35 9.79 8.52 8.48 8.66

Income on U.S. Treasury securities per $100 of U.S. Treasury securities . . 5.48 5.91 6.51 6.73 6.75 6.62

Income on obligations of States and political subdivisions per $100 of

obligations of States and political subdivisions.................................... 4.15 4.33 4.71 4.97 5.00 4.95

Service charges on demand deposits in domestic offices per $100 of

those deposits............................................................................................ .47 .45 .47 .50 .51 .52

Interest paid on time and savings deposits in domestic offices per $100 of

those deposits............................................................................................ 4.66 5.71 6.93 5.92 5.53 5.50

Number of banks (end of period)................................................................... 13,733 13,976 14,228 14,384 14,411 14,412

1 Based on consolidated (including foreign) reports of income-see table 115, note 1.

includes federal funds sold.

3IMot available before 1976.

includes interest on federal funds purchased, subordinated notes and debentures, and other borrowed money.

5Ratios are based on averages of assets and liabilities-see table 115 notes 5 and 6.

180 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table 117. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1977

BANKS GROUPED BY CLASS OF BANK 

(Amounts in thousands of dollars)

Sources and disposition of income Total

Members F.R. System Nonmembers 

F.R. System

Operating 

throughout 

the year

Operating 

less than 

full yearNational State

Operating incom e-total................................................................................................................ 90,357,541 53,788,919 16,728,589 19,840,033 90,319,028 38,513

Interest and fees on loans........................................................................................................ 58,990,506 35,446,288 10,614,729 12,929,489 58,967,878 22,628

Interest on balances with banks............................................................................................... 4,887,917 3,243,048 1,429,766 215,103 4,885,579 2,338

Income on federal funds sold and securities purchased under agreements to resell in

domestic offices................................................................................................................... 2,476,313 1,532,133 386,332 557,848 2,471,440 4,873

Interest on U.S. Treasury securities.......................................................................................... 6,394,514 3,319,382 1,159,554 1,915,578 6,390,688 3,826

Interest on obligations of other U.S. Government agencies and corporations........................ 2,469,463 1,212,580 296,758 960,125 2,468,681 782

Interest on obligations of States and political subdivisions of the U.S..................................... 5,365,327 2,929,628 864,975 1,570,724 5,364,530 797

Interest on other bonds, notes, and debentures...................................................................... 859,077 578,815 134,116 146,146 858,503 574

Dividends on stock................................................................................................................... 109,595 61,291 30,578 17,726 109,396 199

Income from direct lease financing.......................................................................................... 699,273 537,633 126,586 35,054 699,182 91

Income from fiduciary activities............................................................................................. 1,980,395 1,131,299 645,001 204,095 1,980,381 14

Service charges on deposit accounts in domestic offices........................................................ 1,806,509 986,925 219,597 599,987 1,805,435 1,074

Other service charges, commissions, and fees......................................................................... 2,408,698 1,566,644 401,308 440,746 2,407,747 951

Other income........................................................................................................................... 1,909,954 1,243,253 419,289 247,412 1,909,588 366

Operating expenses-total............................................................................................................. 78,791,583 46,955,595 14,754,928 17,081,060 78,741,273 50,310

Salaries and employee benefits............................................................................................... 16,346,067 9,486,853 2,908,540 3,950,674 16,331,727 14,340

Interest on time certificates of deposit of $100,000 or more issued by domestic offices. . . . 6,763,105 4,031,501 1,431,037 1,300,567 6,760,033 3,072

Interest on deposits in foreign offices.................................................................................... 10,215,971 7,123,000 3,000,674 92,297 10,215,971 0

Interest on other deposits........................................................................................................ 21,832,936 11,956,920 2,822,129 7,053,887 21,823,198 9,738

Expense of federal funds purchased and securities sold under agreements to repurchase 

in domestic offices............................................................................................................. 4,542,669 3,116,094 1,205,304 221,271 4,541,924 745

Interest on other borrowed money.......................................................................................... 818,374 603,986 185,560 28,828 817,999 375

Interest on subordinated notes and debentures...................................................................... 392,274 202,668 100,971 88,635 392,123 151

Occupancy expense of bank premises, gross............................................................................ 3,603,117 2,082,507 721,343 799,267 3,599,181 3,936

Less: rental income............................................................................................................. 553,996 372213 86,382 95,401 553,758 238

Occupancy expense of bank premises, net......................................................................... 3,049,121 1,710,294 634,961 703,866 3,045,423 3,698

Furniture and equipment........................................................................................................ 1,930,775 1,140,820 315,235 474,720 1,928,926 1,849

Provision for possible loan losses............................................................................................. 3,301,041 1,985,113 647,901 668,027 3,298,536 2,505

Other expenses........................................................................................................................ 9,599,250 5,598,346 1,502,616 2,498,288 9,585,413 13,837

Income before income taxes and securities gains or losses........................................................... 11,565,958 6,833,324 1,973,661 2,758,973 11,577,755 -11,797

Applicable income taxes................................................................................................................ 2,831,871 1,767,061 543,834 520,976 2,832,128 -257

Income before securities gains or losses....................................................................................... 8,734,087 5,066,263 1,429,827 2,237,997 8,745,627 -11,540

Securities gains or losses, gross..................................................................................................... 141,674 52,456 -111 89,329 141,662 12

Applicable income taxes.......................................................................................................... 43,189 16,000 -4,581 31,770 43,188 1

Securities gains or losses, n e t .................................................................................................. 98,485 36,456 4,470 57,559 98,474 11

Income before extraordinary items............................................................................................... 8,832,572 5,102,719 1,434,297 2,295,556 8,844,101 -11,529

Extraordinary items, gross............................................................................................................. 55,082 43,662 2,623 8,797 55,095 -13

Applicable income taxes.......................................................................................................... 8,249 7,633 161 455 8,249 0

Extraordinary items, net.......................................................................................................... 46,833 36,029 2,462 8,342 46,846 -13

INCOME OF INSURED BANKS

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 117. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1977-CONTINUED

BANKS GROUPED BY CLASS OF BANK 

(Amounts in thousands of dollars)

Sources and disposition of income Total

Members F.R. System Nonmembers 

F.R. System

Operating 

throughout 

the year

Operating 

less than 

National State full year

Net incom e....................................................................................................................................

MEMORANDA

Dividends declared on equity capital-total..................................................................................

Cash dividends declared on common stock.............................................................................

Cash dividends declared on preferred stock.............................................................................

Provision for income taxes-total...................................................................................................

U.S. Federal income taxes.......................................................................................................

U.S. State and local income taxes.............................................................................................

Foreign income taxes.................................................................................................................

Net loan losses or recoveries-total................................................................................................

Recoveries on loans....................................................................................................................

Losses on loans.........................................................................................................................

Trading account income, n e t .......................................................................................................

Number of employees on payroll (end of period)..........................................................................

Number of banks (end of period)...................................................................................................

8,879,405 5,138,748 1,436,759 2,303,898 8,890,947 -11,542

3,304,789

3,301,525

3,264

1,994,266

1,993,176

1,090

646,476

646,280

196

664,047

662,069

1,978

3,304,760

3,301,496

3,264

29

29

0

2,883,309

*1,773,219

525,833

584,257

1,790,694

1,100,342

254,929

435,423

539,414

224,863

171,311

143,240

553,201

448,014

99,593

5,594

2,883,565

1,773,654

525,654

584,257 *

-256

-435

179

0

-2,797,105

813,900

-3,611,005

-1,670,903

508,933

-2,179,836

-569,330

129,164

-698,494

-556,872 S

175,803

- 732,675

-2,796,237

813,863

-3,610,100

-868

37

-905

421,148 299,278 107,830 14,040 421,146 2

1,320,598 759,240 202,799 358,559 1,318,489 2,109

14,412 4,655 1,014 8,743 14,255 157

182 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table 118. INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1977 IN THE UNITED STATES

(STATES AND OTHER AREAS)

BANKS GROUPED BY AMOUNT OF ASSETS 

(Amounts in thousands of dollars)

Banks with assets o fSources and disposition of income All

banks1

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Operating income-total............................................. 90,319,028 284,682 1.371,236 5,842,539 7,469,565 7,414,273 9,378,901 4,267,924 5,853,848 16,509,878 31,926,182

Interest and fees on loans....................................... 58,967,878 173,057 868,567 3,778,044 4,907,330 4,876,259 6,072,659 2,752,837 3,743,629 10,323,340 21,472,156

Interest on balances with banks................................ 4,885,579 2,773 8,353 30,870 39,360 51,742 77,351 28,130 85,335 848,790 3,712,875

Income on federal funds sold and securities 

purchased under agreements to resell in 

domestic offices.................................................... 2,471,440 14,306 52,566 199,426 226,204 197,700 257,019 143,368 204,533 588,683 587,635

Interest on U.S. Treasury securities.......................... 6,390,688 42,145 171,474 614,363 727,873 690,216 890,683 383,965 477,991 1,220,141 1,171,837

Interest on obligations of other U.S. Government 

agencies and corporations..................................... 2,468,681 22,825 97,125 348,666 366,366 333,235 412,771 154,644 169,777 326,188 237,084

Interest on obligations of States and political 

subdivisions of the U.S.......................................... 5,364,530 9,741 76,310 446,975 658,098 672,800 803,584 331,299 453,973 1,005,499 906,251

Interest on other bonds, notes, and debentures. . . . 858,503 1,833 6,147 33,416 45,718 50,943 72,830 31,954 57,222 101,952 456,488

Dividends on stock.................................................. 109,396 136 1,041 4,463 6,243 5,787 9,388 7,047 8,915 25,763 40,613

Income from direct lease financing.......................... 699,182 158 565 4,202 9,073 16,928 26,593 30,257 34,770 131,572 445,064

Income from fiduciary activities............................. 1,980,381 498 3,174 22,652 29,334 83,445 180,798 126,546 171,559 640,618 721,757

Service charges on deposit accounts in domestic 

offices................................................................. 1,805,435 7,736 42,185 185,416 238,302 215,944 240,542 101,653 149,192 338,066 286,399

Other service charges, commissions, and fees........... 2,407,747 6,558 31,128 120,751 143,362 139,753 212,347 116,642 188,775 501,263 947,168

Other income.......................................................... 1,909,588 2,916 12,601 53,295 72,302 79,521 122,336 59,582 108,177 458,003 940,855

Operating expenses—to ta l.......................................... 78,741,273 246,490 1,179,451 4,950,127 6,283,661 6,298,004 8,116,139 3,737,475 5,183,609 14,493,370 28,252,947

Salaries and employee benefits............................... 16,331,727 72,309 296,652 1,128,563 1,378,077 1,394,775 1,837,481 870,866 1,215,534 3,203,698 4,933,772

Interest on time certificates of deposit of $100,000 

or more issued by domestic offices........................ 6,760,033 6,919 39,445 219,472 363,883 456,109 705,809 340,042 497,087 1,551,431 2,579,836

Interest on deposits in foreign offices..................... 10,215,971 0 0 0 0 8,683 14,023 2,280 46,192 919,479 9,225,314

Interest on other deposits....................................... 21,823,198 102,901 540,807 2,345,352 2,949,107 2,775,222 3,252,138 1,325,272 1,581,904 3,586,493 3,364,002

Expense of federal funds purchased and securities 

sold under agreements to repurchase in domestic 

offices................................................................. 4,541,924 547 3,465 19,738 35,603 67,544 194,722 159,805 338,100 1,431,603 2,290,797

Interest on other borrowed money.......................... 817,999 265 947 5,686 8,044 8,701 15,720 6,721 19,625 100,451 651,839

Interest on subordinated notes and debentures. . . . 392,123 170 1,096 9,485 18,752 25,110 46,213 20,638 30,955 122,036 117,668

Occupancy expense of bank premises, gross............. 3,599,181 9,297 44,728 188,436 256,024 282,645 422,217 214,207 292,128 798,561 1,090,938

Less: Rental income............................................. 553,758 454 2,111 9,895 19,377 29,551 72,896 40,605 49,932 184,553 144,384

Occupancy expense of bank premises, net............. 3,045,423 8,843 42,617 178,541 236,647 253,094 349,321 173,602 242,196 614,008 946,554

Furniture and equipment....................................... 1,928,926 6,854 33,436 134,133 167,670 175,105 245,142 123,268 179,739 401,982 461,597

Provision for possible loan losses............................. 3,298,536 8,108 43,309 173,484 202,838 205,529 272,761 145,113 245,515 663,918 1,337,961

Other expenses....................................................... 9,585,413 39,574 177,677 735,673 923,040 928,132 1,182,809 569,868 786,762 1,898,271 2,343,607

Income before income taxes and securities gains or 

losses ....................................................................... 11,577,755 38,192 191,785 892,412 1,185,904 1,116,269 1,262,762 530,449 670,239 2,016,508 3,673,235

Applicable income taxes............................................. 2,832,128 7,582 36,984 175,962 227,242 202,217 207,239 85,854 108,912 435,581 1,344,555

INCOME OF INSURED BANKS

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 118. INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1977 IN THE UNITED STATES

(STATES AND OTHER AREAS)— CONTINUED 

BANKS GROUPED BY AMOUNT OF ASSETS 

(Amounts in thousands of dollars)

Banks with assets ofSources and disposition of income All

banks1

Less

than

$5 million

$5.0 million

to

$9.9 million

$10.0 million

to

$24.9 million

$25.0 million

to

$49.9 million

$50.0 million

to

$99.9 million

$100.0 million

to

$299.9 million

$300.0 million

to

$499.9 million

$500.0 million

to

$999.9 million

$1.0 billion

to

$4.9 billion

$5.0 billion

or

more

Income before securities gains or losses..................... 8,745,627 30,610 154,801 716,450 958,662 914,052 1,055,523 444,595 561,327 1,580,927 2,328,680

Securities gains or losses, gross..................................

Applicable income taxes..........................................

Securities gains or losses, n e t..................................

141,662

43,188

98,474

1,165

173

992

6,247

1,213

5,034

30,722

8,439

22,283

36,707

11,798

24,909

25,819

9,951

15,868

37,927

17,045

20,882

10,346

4,526

5,820

28.573

13,677

14,896

-3,019

-475

-2,544

-32,825

-23,159

-9,666

Income before extraordinary items.................. 8,844,101 31,602 159,835 738,733 983,571 929,920 1,076,405 450,415 576,223 1,578,383 2,319,014

Extraordinary items, gross..........................................

Applicable income taxes..........................................

Extraordinary items, net..........................................

55,095

8,249

46,846

27

8

19

821

31

790

4,173

260

3,913

5,673

973

4,700

3,986

-129

4,115

7,414

454

6,960

4,779

922

3,857

7,020

1,676

5,344

21,202

4,054

17,148

0

0

0

Net income............................................................... 8,890,947 31,621 160,625 742,646 988,271 934,035 1,083,365 454,272 581,567 1,595,531 2,319,014

Memoranda

Dividends declared on equity capital-total................

Cash dividends declared on common stock.............

Cash dividends declared on preferred stock.............

3,304,760

3,301,496

3,264

7,759

7,757

2

35,561

35,505

56

172,789

172,576

213

249,638

249,267

371

283,682

283,246

436

369,641

368,571

1,070

176,121

175,560

561

258,141

257,781

360

719,347

719,152

195

1.032.081

1.032.081

0

Provision for income taxes-total...............................

U.S. Federal income taxes.......................................

U.S. State and local income taxes.............................

Foreign income taxes...............................................

2,883,565

1,773,654

525,654

584,257

7,763

6,614

1,149

0

38,228

32,411

5,817

0

184,661

159,805

24,856

0

240,013

207,341

32,672

0

212,039

182,556

29 J 7 3

210

224,738

183,868

39,394

1,476

91,302

75,464

15,678

160

124,265

96212

26274

1,779

439,160

316,366

76,891

45,903

1,321,396

513,017

273,650

534,729

Net loan losses or recoveries-total.............................

Recoveries on loans..................................................

Losses on loans.......................................................

-2,796,237

813,863

-3,610,100

-6,474

2,858

-9,332

-35,515

13,355

-48,870

-140,380

53,156

-193,536

-164,071

75,948

-240,019

-166,553

67,201

-233,754

-221,180

81,664

-302,844

-119,357

40,766

-160,123

-208,965

57,543

-266,508

-536,090

145,134

-681,224

-1,197,652

276238

-1,473,890

Trading account income, n e t.................................... 421,146 2 1 61 249 1,924 4,780 7,942 25,522 139,507 241,158

Number of employees on payroll (end of period). . . . 1,318,489 7,100 27,666 104,195 129,539 129,388 166,778 76,254 104,664 250,444 322,461

Number of banks (end of period)............................... 14,255 1,101 2,546 4,902 2,977 1,485 822 157 124 120 21

1This group of banks is the same as the group shown in table 117 under the heading "Operating throughout the year."

184 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 119. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1977 IN THE UNITED STATES

(STATES AND OTHER AREAS)1

BANKS GROUPED ACCORDING TO AMOUNT OF ASSETS

Banks with assets o fIncome item Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Amounts per $100 of operating income 

Operating incom e-total.......................................................................... $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00

Interest and fees on loans.................................................................. 60.79 63.34 64.66 65.70 65.81 64.83 64.25 63.92 63.27 66.77

Interest on balances with banks.......................................................... 0.97 0.61 0.53 0.53 0.61 0.68 1.13 1.15 4.38 11.81

Income of federal funds sold and securities purchased

with agreements to resell in domestic offices.............................. 5.03 3.83 3.41 3.03 2.67 2.73 3.37 3.54 3.54 1.90

Interest on U.S. Treasury securities2 ................................................. 14.80 12.51 10.52 9.74 9.31 9.53 8.93 8.29 7.28 3.82

Interest on obligations of other U.S. Government

agencies and corporations2 .......................................................... 8.02 7.08 5.97 4.90 4.51 4.41 3.58 2.87 2.10 0.74

Interest on obligations of States and politicial subdivisions

of the U.S.2 ................................................................................... 3.42 5.57 7.65 8.81 9.09 8.60 7.68 7.90 6.07 2.94

Interest and dividends on other securities2 ...................................... 0.69 0.52 0.65 0.70 0.77 0.84 1.00 1.13 0.81 1.52

Income from direct lease financing.................................................... 0.06 0.04 0.07 0.12 0.23 0.28 0.70 0.62 0.80 1.37

Income from fiduciary activities....................................................... 0.17 0.23 0.39 0.39 1.13 1.94 2.93 2.86 3.84 2.33

Service charges on deposit accounts in domestic offices................... 2.72 3.08 3.17 3.19 2.92 2.58 2.35 2.60 2.15 0.88

Other charges, commissions, and fees................................................. 2.30 2.27 2.07 1.92 1.89 2.27 2.71 3.28 3.01 2.97

Other income2 ..................................................................... 1.02 0.92 0.91 0.97 1.07 1.31 1.39 1.84 2.76 2.94

Operating expenses-total........................................................................ 86.58 86.01 84.73 84.12 84.91 86.52 87.62 88.36 88.06 88.38

Salaries and employee benefits.......................................................... 25.40 21.63 19.32 18.45 18.83 19.65 20.23 20.84 19.87 15.36

Interest on time certificates of deposit of $100,000 or

more issued by domestic offices.................................................... 2.43 2.88 3.76 4.87 6.16 7.41 8.19 8.59 9.08 8.25

Interest on deposits in foreign offices............................................... (4) (4) (4) (4) (4) 0.04 0.49 0.25 4.55 28.70

Interest on other deposits.................................................................. 36.15 39.44 40.14 39.48 37.50 34.80 30.71 27.26 22.62 10.46

Expense of federal funds purchased and securities sold

under agreements to repurchase in domestic offices................... 0.19 0.25 0.34 0.48 0.89 2.08 3.75 5.76 8.30 7.38 Interest on other borrowed money.................................................... 0.09 0.07 0.10 0.11 0.12 0.15 0.19 0.34 0.57 2.01

Interest on subordinated notes and debentures................................. 0.06 0.08 0.16 0.25 0.34 0.48 0.52 0.50 0.77 0.37

Occupancy expense of bank premises, net......................................... 3.11 3.11 3.06 3.17 3.41 3.73 4.05 4.16 3.83 2.94

Furniture and equipment.................................................................. 2.41 2.44 2.30 2.24 2.36 2.62 2.86 3.12 2.47 1.45 Provision for possible loan losses....................................................... 2.85 3.16 2.97 2.72 2.77 2.91 3.39 4.21 4.16 4.12 Other expenses................................................................................... 13.90 12.96 12.59 12.36 12.52 12.64 13.25 13.33 11.84 7.34

Income before income taxes and securities gains or losses...................... 13.42 13.99 15.27 15.88 15.09 13.48 12.38 11.64 11.94 11.62

Amounts per $100 of total assets3 

Operating income-total.......................................................... 7.22 7.23 7.22 7.24 7.20 7.10 7.01 6.83 6.67 6.37

Operating expenses-total........................................................................ 6.25 6.22 6.12 6.09 6.11 6.14 6.15 6.03 5.88 5.63

Income before income taxes and securities gains or losses...................... 0.97 1.01 1.10 1.15 1.09 0.96 0.87 0.79 0.80 0.74

Net incom e..................................................................... 0.80 0.85 0.92 0.96 0.91 0.82 0.74 0.69 0.64 0.47

Memoranda

Recoveries credited to reserve for possible loan losses........... 0.07 0.07 0.07 0.07 0.07 0.06 0.07 0.07 0.06 0.05

Losses charged to reserve for possible loan losses.................................... 0.24 0.26 0.24 0.23 0.23 0.23 0.26 0.31 0.29 0.29

Provision for possible loan losses............................................... 0.21 0.23 0.22 0.20 0.20 0.21 0.24 0.29 0.28 0.26

INCOME OF INSURED BANKS 185

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 119. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1977 IN THE UNITED STATES

(STATES A N D OTHER A R E A S )1 -C O N T IN U E D

BANKS GROUPED ACCORDING TO AMOUNT OF ASSETS

Banks with assets o fIncome item Less $5.0 million $10.0 million $25.0 million $50.0 million $100.0 million $300.0 million $500.0 million $1.0 billion $5.0 billion

than to to to to to to to to or

$5 million $9.9 million $24.9 million $49.9 million $99.9 million $299.9 million $499.9 million $999.9 million $4.9 billion more

Amounts per $100 of total equity capital3

Net incom e.............................................................................................. 7.69 9.40 11.34 12.50 12.26 11.90 10.94 10.59 10.75 10.89

Cash dividends declared on common s to c k ............................................ 1.89 2.08 2.63 3.15 3.72 4.06 4.21 4.48 4.99 4.81

Net additions to capital from income........................................................ 7.02 8.98 10.37 11.10 10.05 9.26 7.98 9.73 7.34 8.74

Memoranda

Recoveries credited to reserve for possible loan losses............................ 0.69 0.78 0.81 0.96 0.88 0.89 0.98 1.06 1.01 1.26

Losses charged to reserve for possible loan losses.................................... 2.27 2.86 2.95 3.04 3.07 3.33 3.84 4.82 4.82 6.68

Provision for possible loan losses............................................................. 2.06 2.61 2.70 2.64 2.73 3.01 3.51 4.43 4.69 6.07

Special ratios3

Return on total loans................................................................................ 8.57 8.55 8.62 8.74 8.67 8.63 8.56 8.31 8.09 7.72

Return on U.S. Treasury securities.......................................................... 6.87 6.83 6.76 6.78 6.71 6.66 6.63 6.42 6.47 6.81

Return on obligations of States and political subdivisions...................... 5.49 5.09 4.92 4.86 4.75 4.71 4.66 4.81 4.78 4.58

Return on other securities........................................................................ 7.28 7.24 7.14 7.24 7.20 7.33 7.18 7.20 6.69 7.16

Service charges on demand deposits in domestic offices......................... 0.54 0.69 0.73 0.75 0.68 0.58 0.49 0.51 0.44 0.26

Interest paid on time and savings deposits............................................... 5.30 5.30 5.36 5.40 5.35 5.31 5.27 5.15 5.15 5.02

Number of banks (end of period)............................................................. 1,101 2,546 4,902 2,977 1,484 820 160 120 121 24

1 This group of banks is the same as the group shown in table 117 under "Operating throughout the year." 

2Income from securities held in trading accounts is included in "Other operating income."

3Ratios are based on assets and liabilities reported at end of year.

4 Less than 0.005.

186 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 120. INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1972-1977

(Amounts in thousands of dollars)

Income item 1972 1973 1974 1975 1976 1977

Operating incom e-total........................................................................................................................... 5,295,449 6,064,895 6,483,654 7,179,294 8,312,692 9,405,550

Interest and fees on real estate mortgage loans, net............................................................................ 3,690,871 4,171,520 4,503,214 4,817,741 5,225,101 5,744,885

Interest and fees on real estate mortgage loans, gross.................................................................... 3,760,908 4,240,926 4,570,902 4,883,664 5,290,560 5,809,758

Less: Mortgage servicing fees........................................................................................................ 70,037 69,406 67,688 65,923 65,459 64,873

Interest and fees on other loans.......................................................................................................... 178,126 283,506 337,844 283,416 334,625 433,413

Interest on U.S. Government and agency securities............................................................................ 352,297 414,359 403,940 567,577 869,038 1,096,826

Interest on corporate bonds................................................................................................................ 726,665 730,132 743,944 929,613 1,166,755 1,294,753

Interest on State, county, and municipal obligations......................................................................... 30,857 52,982 47,028 74,858 142,958 166,939

Interest on other bonds, notes, and debentures................................................................................. 91,856 116,901 125,718 150,841 200,849 255,319

Dividends on corporate stock............................................................................................................. 126,256 148,781 170,273 191,401 207,398 227,541

Income from service operations.......................................................................................................... 30,072 35,771 27,875 32,968 39,825 47,585

Other operating incom e..................................................................................................................... 68,449 110,943 123,818 130,879 126,143 138,289

Operating expenses-total........................................................................................................................ 671,818 811,689 938,705 1,083,192 1,310,921 1,465,245

Salaries................................................................................................................................................. 270,353 307,030 344,304 388,061 440,284 497,563

Pensions and other employee benefits............................................................................................... 63,882 72,567 83,338 98,268 114,310 128,539

Interest on borrowed m oney............................................................................................................. 6,713 28,907 66,110 55,168 45,365 46,827

Occupancy expense of bank premises (including taxes, depreciation, maintenance, rentals), net. . . 82,820 96,128 114,206 135,754 158,044 172,095

Furniture and equipment (including recurring depreciation)........................................................... 32,237 37,104 43,815 52,543 62,285 73,948

Actual net loan losses (charge-offs less recoveries)............................................................................ 4,500 8,994 10,034 21,836 78,732 69,97 5

Other operating expenses................................................................................................................... 211,313 260,959 276,898 331,562 411,901 476,298

Net operating income before interest and dividends on deposits........................................................... 4,623,631 5,253,206 5,544,949 6,096,102 7,001,771 7,940,305

Interest and dividends on deposits-total.................................................................................................. 3,943,233 4,480,901 4,916,724 5,495,842 6,287,966 6,997,464

Savings deposits................................................................................................................................... 3,392,798 3,567,595 3,607,170 3,778,695 4,160,435 4,222,013

Other time deposits.............................................................................................................................. 550,435 913,306 1,309,554 1,717,147 2,127,531 2,775,451

Net operating income after interest and dividends on deposits.............................................................. 680,398 772,305 628,225 600,260 713,805 942,841

Net realized gains or losses o n -to ta l........................................................................................................ -14,896 -92,357 -148,844 -63,283 20,260 18,562

Securities.............................................................................................................................................. 3,481 -65,973 -111,501 -25,899 49,283 47,625

Real estate mortgage loans................................................................................................................... -25,944 -20,187 -38,556 -22,904 -21,554 -40,988

Real estate............................................................................................................................................ -509 -673 588 -7,169 -423 -2,804

Other transactions.............................................................................................................................. 8,076 -5,524 625 -7,311 -7,046 14,729

Less minority interest in consolidated subsidiaries................................................................................. 34 0 0 37 5 1

Net income before taxes........................................................................................................................... 665,468 679,948 479,381 536,940 734,060 961,402

Franchise and income taxes-total.......................................................................................................... 186,303 201,792 161,870 171,549 227,088 280,260

Federal income ta x .............................................................................................................................. 108,679 114,500 81,089 66,543 107,801 139,242

State and local franchise and income taxes....................................................................................... 77,624 87,292 80,781 105,006 119,287 141,018

Net incom e.............................................................................................................................................. 479,165 478,156 317,511 365,391 506,972 681,142

INCOME OF INSURED BANKS 187

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 120. INCOME OF INSURED M U TUA L SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1972-1977-C O N TIN U E D

(Amounts in thousands of dollars)

Income item 1972 1973 1974 1975 1976 1977

Memoranda

Discount on securities, total......................................................................................................................

534,229

19,630

561,695

27,805

369,166

32,406

407,314

109,383

545,665

41,722

834,461

40,381

Average assets and liabilities1

Cash and due from banks...................................................................................................................

Real estate mortgage loans...................................................................................................................

All other assets....................................................................................................................................

Liabilities and surplus accounts-total......................................................................................................

Total deposits.......................................................................................................................................

Savings and time deposits..............................................................................................................

Demand deposits............................................................................................................................

Total surplus accounts.........................................................................................................................

82.995.606

1,329,972

5,740,097

15,033,388

56,553,602

2,566,460

116,406

1,655,681

82.995.606

76,226,170

75,472,194

753,976

1,074,401

5,695,035

90.850.840

1,676,216

6,299,082

16,238,983

61,600,178

2,967,740

170,868

1,897,773

90.850.840

83,212,442

82,350,237

862,205

1,381,121

6,257,277

94.426.708

1,825,066

5,950,081

16,410,896

64,695,689

3,250,960

207,125

2,086,891

94.426.708

85,994,384

85,097,902

896,482

1,763,885

6,668,439

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

114.044.800

1,934,535

11,482,069

23,065,574

70,314,531

4,084,414

457,255

2,706,422

114.044.800

104,554,349

103,540,616

1,013,733

1,849,625

7,640,826

126.744.049

2,102,650

14,456,447

25,823,209

75,523,639

5,355,664

478,620

3,003,820

126.744.049

116,405,474

115,084,387

1,321,087

1,947,906

8,390,669

Number of employees (end of period)...................................................................................................... 32,866 35,668 37,494 40,261 45,040 49,466

Number of banks (end of period).............................................................................................................. 326 322 320 329 329 323

1 Averages of amounts reported at beginning, middle, and end of year.

188 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 121. RATIOS OF INCOME OF INSURED M UTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1972-1977

Income item 1972 1973 1974 1975 1976 1977

Amounts per $100 of operating income

Operating income-total...................................................................................................................................... $100.00 $100.00 $100.00 $100.00 $100.00 $100.00

Interest and fees on real estate mortgage loans-net.................................................................................... 69.70 68.78 69.45 67.11 62.86 61.08

Interest and fees on other loans..................................................................................................................... 3.36 4.68 5.21 3.95 4.03 4.61

Interest on U.S. Government and agency securities....................................................................................... 6.65 6.83 6.23 7.91 10.45 11.66

Interest on corporate bonds........................................................................................................................... 13.72 12.04 11.47 12.95 14.04 13.77

Interest on State, county, and municipal obligations.................................................................................... .58 .87 .73 1.04 1.72 1.77

Interest on other bonds, notes, and debentures............................................................................................ 1.74 1.93 1.94 2.10 2.42 2.71

Dividends on corporate stock....................................................................................................................... 2.39 2.45 2.63 2.67 2.49 2.42

Income from service operations..................................................................................................................... .57 .59 .43 .46 .48 .51

Other operating income................................................................................................................................ 1.29 1.83 1.91 1.82 1.52 1.47

Operating expense-total...................................................................................................................................... 12.69 13.38 14.48 15.09 15.77 15.58

Salaries............................................................................................................................................................ 5.11 5.06 5.31 5.41 5.30 5.29

Pensions and other employee benefits.......................................................................................................... 1.21 1.20 1.29 1.37 1.38 1.37

Interest on borrowed money........................................................................................................................ .13 .48 1.02 .77 .55 .50

Occupancy expense of bank premises (including taxes, depreciation, maintenance, rentals)-net................. 1.56 1.58 1.76 1.89 1.90 1.83

Furniture and equipment (including recurring depreciation)...................................................................... .61 .61 .68 .73 .75 .79

Actual net loan losses (charge-offs less recoveries)....................................................................................... .08 .15 .15 .30 .95 .74

Other operating expenses............................................................................................................................. 3.99 4.30 4.27 4.62 4.96 5.06

Net operating income before interest and dividends on deposits...................................................................... 87.31 86.62 85.52 84.91 84.23 84.42

Interest and dividends on deposits-total............................................................................................................. 74.46 73.88 75.83 76.55 75.64 74.40

Savings deposits2 ........................................................................................................................................... 64.07 58.82 55.63 52.63 50.05 44.89

Other time deposits2 ...................................................................................................................................... 10.39 15.06 20.20 23.92 25.59 29.51

Net operating income after interest and dividends on deposits......................................................................... 12.85 12.74 9.69 8.36 8.59 10.02

Net realized gains (or losses) on-total................................................................................................................ -.28 -1.53 -2.30 -.88 .24 .20

Securities......................................................................................................................................................... .07 -1.09 -1.72 -.36 .59 .51

Real estate mortgage loans.............................................................................................................................. -.49 -.34 -.60 -.32 -.26 -.44

Real estate...................................................................................................................................................... -.01 -.01 .01 -.10 -.01 -.03

Other transactions......................................................................................................................................... .15 -.09 .01 -.10 -.08 .16

Less minority interest in consolidated subsidiaries............................................................................................ (1) .00 .00 (1) (1) (1)

Net income before taxes...................................................................................................................................... 12.57 11.21 7.39 7.48 8.83 10.22

Franchise and income taxes-total..................................................................................................................... 3.52 3.33 2.49 2.39 2.73 2.98

Federal income tax......................................................................................................................................... 2.05 1.89 1.25 .93 1.30 1.48

State and local franchise and income taxes.................................................................................................. 1.47 1.44 1.24 1.46 1.43 1.50

Net income......................................................................................................................................................... 9.05 7.88 4.90 5.09 6.10 7.24

INCOME OF INSURED BANKS 189

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 121. RATIOS OF INCOME OF INSURED M UTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS) 1972-1977-C O N TIN U E D

Income item 1972 1973 1974 1975 1976 1977

Amounts per $100 of total assets2

Operating incom e-total...................................................................................................................................... 6.38 6.68 6.87 7.06 7.29 7.42

Operating expense-total...................................................................................................................................... .81 .90 .99 1.06 1.15 1.16

Net operating income before interest and dividends on deposits....................................................................... 5.57 5.78 5.88 5.99 6.14 6.26

Interest and dividends on deposits-total.............................................................................................................. 4.75 4.93 5.21 5.40 5.51 5.52

Net operating income after interest and dividends on deposits.......................................................................... .82 .85 .67 .59 .63 .74

Net realized gains (or Iosses)— to ta l...................................................................................................................... -.02 -.10 -.16 -.06 .02 .01

Net income before taxes...................................................................................................................................... .80 .75 .51 .53 .64 .76

Franchise and income taxes-total...................................................................................................................... .22 .22 .17 .17 .20 .22

Net incom e.......................................................................................................................................................... .58 .53 .34 .36 .44 .54

Special ratios2

Interest on U.S. Government and agency securities per $100 of U.S. Government and agency securities .... 6.14 6.58 6.79 7.25 7.57 7.59

Interest and dividends on other securities per $100 of other securities.............................................................. 6.49 6.46 6.62 7.07 7.45 7.53

Interest and fees on real estate mortgage loans per $100 of real estate loan s................................................... 6.53 6.77 6.96 7.22 7.43 7.61

Interest and fees on other loans per $100 of other loans..................................................................................... 6.94 9.55 10.39 8.36 8.19 8.09

Interest and dividends on deposits per $100 of savings and time deposits......................................................... 5.22 5.44 5.78 5.98 6.07 6.08

Net income per $100 of total surplus accounts.................................................................................................. 8.41 7.64 4.76 5.18 6.64 8.12

Number of banks (end of period)......................................................................................................................... 326 322 320 329 329 323

1 Less than 0.005.

2See note to table 120.

190 FEDERAL DEPOSIT INSURANCE CORPORATION

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BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES; 

FDIC INCOME, DISBURSEMENTS, AND LOSSES

Table 122. Number and deposits of banks closed because of financial difficulties, 1934— 1977

Table 123. Insured banks requiring disbursements by the Federal Deposit Insurance Corporation during 

1977

Table 124. Depositors, deposits, and disbursements in failed banks requiring disbursements by the Federal 

Deposit Insurance Corporation, 1934— 1977

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

deposits, and State

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

for protection of depositors, 1934— 1977

Table 126. Analysis of disbursements, recoveries, and losses in deposit insurance transactions, January 1, 

1934— December 31, 1977

Table 127. Income and expenses, Federal Deposit Insurance Corporation, by year, from beginning of operations, September 11, 1933, to December 31, 1977

Table 128. Protection of depositors of failed banks requiring disbursements by the Federal Deposit Insurance Corporation, 1934— 1977

Table 129. Insured deposits and the deposit insurance fund, 1934— 1977

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Federal Reserve Bank of St. Louis
Deposit insurance disbursements

Disbursements by the Federal Deposit Insurance Corporation to protect

depositors are made when the insured deposits of banks in financial d iffic u lties are paid off, or when the deposits of a failing bank are assumed by

another insured bank w ith the financial aid of the Corporation. In deposit

payoff cases, the disbursement is the amount paid by the Corporation on

insured deposits. In deposit assumption cases, the principal disbursement is

the amount loaned to failing banks, or the price paid fo r assets purchased

from them ; additional disbursements are made in those cases as advances fo r

protection of assets in process of liquidation and fo r liquidation expenses.

Under its section 13(c) authority, the Corporation has made disbursements to four operating banks. The amounts of these disbursements are

included in table 126, but are not included in tables 124 and 125.

IMoninsured bank failures

Statistics in this report on failures o f noninsured banks are compiled

from inform ation obtained from State banking departments, field supervisory officials, and other sources. The Corporation received no reports of

noninsured bank closures due to financial difficulties in 1977.

For detailed data regarding noninsured banks that suspended in the

years 1934-1962, see the Annual R eport fo r 1963, pp. 27-41. For

1963-1977, see table 122 o f this report, and previous reports fo r respective

years.

Sources o f data

Insured banks: books o f bank at date o f closing; and books of FDIC,

December 31, 1977.

192 FEDERAL DEPOSIT INSURANCE CORPORATION

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Table 122. NUMBER AND DEPOSITS OF BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES, 1 9 3 4 -1 9 7 7

Noninsured1Without 

disbursements 

by FDIC2

With 

disbursements 

by FDIC3

Deposits (in thousands of dollars)

Noninsured1

Without 

disbursements 

by FDIC2

With 

disbursements 

by FDIC3

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 .

1976 .

1977 .

61

32

72

84

81

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

3

9

84

6

3 

6

4

144

17

6

52

6

3

7

7

12

5

2

3

9

26

69

77

74

60

43

15 

20

5

2

1

1

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

16 

6

9

25

69

75

74

60

43

15 

20

5

2

1

1

5

3

4

4 

2

3 

2 

2

5 

2 

1

4

3 

1

5

"l

7

5 

7

4

3 

9 

7

6 

1 

6

4 

13

16

5,227,772

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 

55,2444 

132,152 

99,784 

971,296 

1,575,832 

340,5744 

865,659 

205,208

143,500

35,364

583

592

528

1,038

2,439

358

79

355

147

167

2,552

42

3,056

143

390

1,950

360

1,255

2,173

' 'l’035 

1,675 

1,220

' ’ 429 

1,395 

2,648

4234

79*304

1,0004

800

5,084,272

1,968

13,405

27,508

33,677

59,684

157,772

142,430

29,717

19,185

12,525

1,915

5,695

347

7,040

10,674

6,665

5,513

3,408

3,170

44,711

998

11,953

11,330

11,247

8,240

2,593

6,930

8,936

3,011

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

339,574

864,859

205,208

85

328

26,449

10,084

5,043,125

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

339,574

864,859

205,208

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 seven 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 31,1977.

4 Revised.

BANKS CLOSED; FDIC INCOME, DISBURSEMENTS, AND LOSSES 193

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Table 123. INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1977

Case

number Name and location

Class 

of bank

Number of 

depositors or 

accounts1

Date of 

deposit assumption

FDIC

disbursement2 Assuming bank

Deposit

assumption

233 First State Bank 

Foss, Oklahoma

NM 1,022 March 10, 1977 $1,387,409 Washita State Bank 

Foss, Oklahoma

234 The Monroe Bank and Trust Company 

Monroe, Connecticut

NM 3,460 March 28, 1977 2,132,221 The North American Bank and Trust Company 

Wolcott, Connecticut

235 First Augusta Bank & Trust Company 

Augusta, Georgia

NM 14,904 May 20, 1977 12,044,376 The First National Bank of Atlanta 

Atlanta, Georgia

236 Republic National Bank 

of Louisiana 

New Orleans, Louisiana

N 3,118 July 29, 1977 2,983,991 First City Bank 

New Orleans, Louisiana

237 Donahue Savings Bank 

Donahue, Iowa

NM 1,336 August 26, 1977 2,819,050 Davenport Bank and Trust Company 

Davenport, Iowa

238 Banco Economias 

San German, Puerto Rico

NM 71,638 September 2, 1977 15,001,065 Banco Central 

Madrid, Spain

Assets1 Liabilities and capital accounts

Case

number Cash and 

due from banks

U.S. Government 

obligations

Other

securities

Loans, 

discounts, and 

overdrafts

Banking house, 

furniture, and 

fixtures

Other 

real estate

Other

assets

Total Deposits Other

liabilities

Capital

stock

Other capital 

accounts

Deposit

assumption

233 $ 90,814 $ 220,000 $ 1,503,978 $ 16,270 $ 213,311 $ 2,044,373 $ 1,762,812 $ 25,972 $ 25,000 $ 230,589

234 329,434 254,125 518,875 2,902,597 181,008 107,301 21,287 4,314,627 2,790,582 1,034,165 1,000,000 (510,121)

235 902,820 2,747,207 260,291 18,105,769 869,336 227,829 1,109,659 24,222,911 20,017,238 2,054,795 655,948 1,494,929

236 352,590 2,046,003 714,831 2,644,992 408,723 - 99,652 6,266,791 4,912,008 1,373,160 500,000 (518,376)

237 922,255 199,620 687,325 3,509,636 164,332 25,541 5,508,709 5,094,1913 65,844 120,000 228,674

238 24,773,854 17,708,663 12,362,932 118,235,558 1,920,187 - 15,253,089 190,254,283 169,998,585 31,985,831 7,084,790 (18,814,923)

1 Figures as determined by FDIC agents after adjustments of books of the bank immediately following its closing.

2Includes disbursements made to December 31, 1977, plus additional disbursements estimated to be required in these cases.

3Deposit liability total will increase as accounts of some depositors are reconstructed to reflect their true balances.

194 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
30

m

9

25

69

75

74

60

43

15

20

5

2

1

1

5

3

4

4

2

3

2

2

5

2

1

4

3

1

SITORS, DEPOSITS, AND DISBURSEMENTS IN FAILED BANKS REQUIRING DISBURSEMENTS BY THE 

FEDERAL DEPOSIT INSURANCE CORPORATION, 1934-1977 

D BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF OR DEPOSIT ASSUMPTION, AMOUNT OF DEPOSITS, AND STATE

jmber of banks

Payoff

Assumption

Number of depositors1

Payoff

cases

Assumption

cases

Deposits1 

(in thousands of dollars)

Payoff

cases

Assumption

Disbursements by FDIC1 

(in thousands of dollars)

Principal disbursements

Total Payoff

Assumption

Advances and 

expenses2

Payoff

Assumption

cases6

303

36

10

257

9

24

42

50

50

32

19

8

6

4

1

238

64

20

154

1

27 

25 

24

28 

24

7

14

1

1

1

1

5

3

4 

4 

2

3 

2

2

3,400,490

1,495,157

428,129

1,477,204

15,767

44,655

89,018

130,387

203,961

392,718

256,361

73,005

60,688

27,371

5,487

12,483

1,383

10,637

18,540

5,671

6,366

5,276

6,752

24,469

1,811

17,790

15,197

2,338

9,587

3,073

11,171

623,030

108,812

88,894

425,324

15,767

32,331

43,225

74,148

44,288

90,169

20,667

38,594

5,717

16,917

8,080

5,465

2,338

4,380

3,073

11,171

2,777,460

1,386,345

339,235

1,051,880

12,324

45,793

56,239

159,673

302,549

235,694

34,411

54,971

10,454

4,588

12,483

1,383

10,637

18,540

5,671

6,366

5,276

6,752

24,469

1,811

9,710

9,732

5,207

5,043,125

3,064,951

438,232

1,539,942

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

468,247

113,780

34,388

320,079

1,968

9,091

11,241

14,960

10,296

32,738

5,657

14,730

1,816

6,637

456

6,503

4,702

1,163

4,156

2,593

6,930

4,574,878

2,951,171

403,844

1,219,863

4,229

16,267

18,389

49,388

125,034

136,773

14,987

17,369

5,888

1,459

5,695

347

7,040

10,674

5,475

5,513

3,408

3,170

18,262

998

5,450

6,628

4,084

2,685,710

1,455,696

313,946

916,068

941

8,891

14,460

19,481

30,479

67,770

74,134

23,880

10,825

7,172

1,503

1,768

265

1,724

2,990

2,552

3,986

1,885

1,369

5,017

913

6,784

3,458

1,031

3,026

1,835

4,765

325,183

65,235

26,500

233,448

941

6,026

7,735

12,365

9,092

26,196

4,895

12,278

1,612

5,500

404

4,438

2.795 

1,031

2.796 

1,835 

4,765

2,360,527

1,390,461

287,446

682,620

2,865

6,725

7,116

21,387

41,574

69,239

11,602

9,213

1,672

1,099

1,768

265

1,724

2,990

2,552

3,986

1,885

1,369

5,017

913

2,346

663

’ ‘ ‘ 230

8,284 108,549

2,824 24,513

1,010 22,654

4,450 61,382

43

108 272

67 934

103 905

93 4,902

162 17,603

89 17,237

50 1,479

38 1,076

53 72

9 37

96

11

393

200

166

524

127

195

428

145

’ 106 665

87 51

20

38 31

51

BANKS CLOSED; FDIC INCOME, DISBURSEMENTS, AND LOSSES 195

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Table 124. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN FAILED BANKS REQUIRING DISBURSEMENTS BY THE 

FEDERAL DEPOSIT INSURANCE CORPORATION, 1934-1977-C O N TIN U E D 

BANKS GROUPED BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF OR DEPOSIT ASSUMPTION, AMOUNT OF DEPOSITS, AND STATE

Classification

Number of banks Number of depositors1

Deposits1 

(in thousands of dollars)

Disbursements by FDIC1 

(in thousands of dollars)

Total Payoff

cases

Assumption

cases

Total Payoff

cases

Assumption

cases

Total Payoff

cases

Assumption

cases

Principal disbursements

Advances and 

expenses2

Total Payoff

cases3

Assumption

cases4

Payoff

cases5

Assumption

cases6

1961.................................................. 5 5 8 301 8,301 8,936 8,936 6,201 6,201 154

1963 .................................................. 2 2 36,433 36,433 23,444 23,444 19,230 19,230 348

1964 .................................................. 7 7 19,934 19,934 23,438 23,438 13,744 13,744 599

1965 .................................................. 5 3 2 15,817 14,363 1,454 43,861 42,889 972 11,430 10,957 473 640 123

1966 .................................................. 7 1 6 95,424 1,012 94,412 103,523 774 102,749 8,732 735 7,997 35 1,605

1967 .................................................. 4 4 4,729 4,729 10,878 10,878 8,120 8,120 241

1968 .................................................. 3 3 12,850 12,850 22,524 22,524 5,586 5,586 1,113

1969 .................................................. 9 ' 4 5 27,374 6,544 20,830 40,134 9,012 31,122 37,624 7,604 30,020 ’ 299 4,382

1970 .................................................. 7 4 3 31,433 20,403 11,030 54,821 33,489 21,332 49,318 29,354 19,964 698 1,817

1971.................................................. 6 5 1 71,950 31,850 40,100 132,152 74,605 57,547 162,090 53,791 108,299 781 10,249

1972 .................................................. 1 1 23 655 23,655 20 480 20 480 16,275 16,275 370

1973 .................................................. 6 3 ' i 349,699 8,382 341,317 971,296 25,795 945,501 398,810 16,802 382,008 1,247 917

1974 .................................................. 4 4 704 283 704,283 1,575,832 1,575,832 780 929 780,929 11,641

1975 .................................................. 13 ' i 10 110,367 21,925 88,442 339,574 39,902 299,672 303,187 25,991 277,196 ’ 716 14,265

1976 .................................................. 16 3 13 340,731 8,246 332,485 864,859 18,859 846,000 540,183 11,675 528,508 957 14,092

1977 .................................................. 6 6 95,548 24 95,524 205,208 108 205,100 21,347s 21,347 794

Banks with deposits of:

Less than $100,000............................ 107 83 24 38,347 29,695 8,652 6,418 4,947 1,471 5,000 4,309 691 88 154

$100,000 to $250,000 ...................... 109 86 23 83,370 65,512 17,858 17,759 13,920 3,839 12,906 11,554 1,352 209 173

$250,000 to $500,000 ...................... 62 37 25 92,179 57,287 34,892 22,315 12,921 9,394 15,615 10,549 5,066 164 611

$500,000 to $1,000,000................... 72 36 36 160,388 74,296 86,092 54,424 26,820 27,604 36,062 20,967 15,095 435 2,352

$1,000,000 to $2,000,000................. 58 21 37 210,840 70,334 140,506 78,262 27,888 50,374 45,648 22,068 23,580 698 3,875

$2,000,000 to $5,000,000................. 57 22 35 299,742 89,123 210,619 186,625 70,384 116,241 112,436 52,059 60,377 1,163 8,393

$5,000,000 to $10,000,000 .............. 34 7 27 294,630 50,445 244,185 231,127 55,868 175,259 127,502 37,962 89,540 944 11,685

$10,000,000 to $25,000,000 ........... 21 9 12 352,222 146,454 205,768 340,582 148,421 192,161 205,360 108,994 96,366 1,929 10,356

$25,000,000 to $50,000,000 ........... 7 1 6 308,637 12,481 296,156 257,585 40,176 217,409 118,562 9,700 108,862 581 27,210

$50,000,000 to $100,000,000 .... 6 1 5 244,265 27,403 216,862 525,377 66,902 458,475 344,647 47,021 297,626 507 19,236

$100,000,000 to $500,000,000. . . . 6 6 350,870 350,870 945,713 945,713 579,752s 579,752 709 21,557

$500,000,000 to $1,000,000,000. . . 1 1 335 000 335 000 931 955 931 955 374,342 374,342 857

$1 000,000,000 or more................... 1 1 630'000 630,000 1,444,982 1,444,982 707,876 707,876 2,945

State

Alabama............................................ 4 2 2 9,170 2,059 7,111 6,170 3,985 2,185 3,561 2,566 995 94 91

Arizona............................................... 1 1 2,692 2,692 5,044 5,044 5,082 5,082 283

Arkansas............................................ 8 ' 6 2 6,350 4,541 1,809 4,836 1,942 2,894 3,408 1,576 1,832 ’ ’ 43 241

California.......................................... 6 3 3 390,819 17,890 372,929 1,032,658 46,220 986,438 429,849 12,946 416,903 1,533 3,206

Colorado............................................ 8 4 4 18,852 6,082 12,770 24,748 6,403 18,345 13,926 4,612 9,314 280 2,274

196 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Connecticut....................................... 3 2 1 8,839 5,379 3,460

Florida.............................................. 5 2 3 14,082 1,725 12,357

Georgia............................................... 12 8 4 32,442 8,797 23,645

2 2 2 451 2 451

Illinois............................................... 23 10 ’ 13 101,651 44,379 57,272

Indiana............................................... 20 15 5 30,006 12,549 17,457

Io w a .................................................. 11 5 6 25,206 5,736 19,470

Kansas............................................... 11 6 5 8,065 3,824 4,241

Kentucky .......................................... 26 20 6 40,313 19,352 20,961

Louisiana.......................................... 6 4 2 79,117 8,999 70,118

Maine.................................................. 1 1 9,710 9 710

Maryland............................................ 5 2 3 22,567 6,643 15,924

Massachusetts.................................... 5 1 4 42,279 23,655 18,624

Michigan............................................ 14 5 9 172,607 10,452 162,155

5 5 2,650 2,650

Mississippi.......................................... 4 3 1 14,351 1,651 12,700

Missouri............................................ 52 38 14 55,554 37,977 17,577

Montana............................................ 5 3 2 1,500 849 651

Nebraska............................................ 8 8 7,773 7,773

New Hampshire................................. 1 1 1,780 1,780

New Jersey.......................................... 42 13 29 563,917 113,692 450,225

New Y o rk .......................................... 28 3 25 925,621 28,440 897,181

North Carolina................................. 7 2 5 10,408 3,677 6,731

North Dakota.................................... ?9 18 11 14,103 6,760 7,343

O h io .................................................. 5 2 3 21,251 7,585 13,666

Oklahoma.......................................... 13 8 5 28,672 20,149 8,523

Oregon............................................... 2 1 1 3,439 1,230 2,209

Pennsylvania....................................... 31 8 23 182,590 43,828 138,762

South Carolina................................. 3 1 2 68,080 403 67,677

South Dakota .................................... 23 22 1 12,515 11,412 1,103

Tennessee.......................................... 13 8 5 132,358 9,993 122,365

Texas.................................................. 46 33 13 125,988 80,965 45,023

U ta h .................................................. 1 1 3 254 3 254

Vermont............................................ 3 ' 2 1 11',057 8,687 2,370

Virginia............................................... 9 4 5 35,715 12,638 23,077

Washington....................................... 1 1 4,179 4,179

West V irgin ia.................................... 3 3 8 346 8 346

Wisconsin.......................................... 33 20 ’ 13 62*247 18',739 43,508

Wyoming............................................ 1 1 3,212 3,212

Other areas

Virgin Islands.................................... 1 1 11,073 11,073

Puerto R ico....................................... 1 1 71,638 71,638

1 Adjusted to December 31,1977. In assumption cases, number of depositors refers to number of deposit accounts.

2Excludes $1,134 thousand of nonrecoverable insurance expenses in cases that were resolved without payment of cla 

liquidation employees not chargeable to liquidation activities.

3lncludes estimated additional disbursements in active cases.

4Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.

5These disbursements are not recoverable by the Corporation; they consist almost wholly of field payoff expenses,

includes advances to protect assets and liquidation expenses of $99,845 thousand, all of which have been fully reco\

7No cases in 1962 required disbursements. Disbursement totals for each year relate to cases occurring during that yea

8ln 1977 the assets of Banco Economias were purchased outright by the Corporation. Disbursements in the case are i 

Note: Due to rounding differences, components may not add to totals.

4,326 1,526 2,800 3,371 1,242 2,129 8 231

17,665 2,668 14,997 11,171 2,139 9,032 65 698

53,981 1,870 52,111 36,803 1,551 35,252 33 1,394

1,894 1,894 1,493 1,493 29

115,259 28,972 86,287 80,350 23,924 56,426 511 2,833

13,595 3,933 9,662 6,197 3,096 3,101 39 384

29,964 8,535 21,429 17,244 6,469 10,775 148 622

7,665 4,358 3,307 5,672 3,601 2,071 60 264

16,072 5,768 10,304 12,484 5,046 7,438 146 599

176,274 9,735 166,539 141,884 4,937 136,947 149 2,212

5,450 5,450 2,346 2,346 665

4,566 828 3,738 3,109 735 2,374 ‘ ’ 9 371

38,696 20,480 18,216 27,257 16,275 10,982 369 1,668

194,399 13,477 180,922 142,510 12,242 130,268 206 13,024

818 818 640 640 17

15,686 334 15,352 12,024 257 11,767 5 462

29,153 18,167 10,986 21,491 14,027 7,464 323 1,183

1,095 215 880 639 186 453 6 21

11,644 11,644 8 116 8,116 150

296 296 117 117 8

250,383 49,122 201,261 121,991 40,049 81,942 519 22,138

1,755,500 13,286 1,742,214 922,442 10,836 911,606 741 13,792

3,266 1,421 1,845 2,387 1,156 1,231 23 179

3,830 1,552 2,278 2,656 1,397 1,259 24 203

102,838 2,345 100,493 90,788 1,610 89,178 7 3,224

20,720 11,053 9,667 11,665 7,936 3,729 178 726

2,670 1,368 1,302 1,948 986 962 11 81

96,907 14,340 82,567 67,482 10,133 57,349 75 10,508

113,553 136 113,417 60,650 136 60,514 7,526

2,988 2,862 126 2,411 2,388 23 ‘ * 26 9

338,234 1,620 336,614 127,982 1,164 126,818 28 4,918

210,359 142,151 68,208 137,986 97,324 40,662 1,720 3,382

5,992 5,992 3,538 3,538 300

3,725 3,375 350 3,445 3,259 186 ’ ’ 21 22

17,779 7,652 10,127 8,263 3,867 4,396 304 505

1,538 1,538 935 935 512

2,006 2,006 1,458 1,458 i i

112,627 5,966 106,661 118,023 5,096 112,927 54 7,770

2,033 2,033 202 202 19

14,219 14,219 8,712 8,712 320

170,000 170,000 (8)

or a disbursement to facilitate assumption of deposits by another insured bank and other expenses of field

ered by the Corporation, and $8,704 thousand of nonrecoverable expenses, 

r, including disbursements made in subsequent years.

icluded in table 125 under "Other disbursements" and are not included in this table. coBANKS CLOSED; FDIC INCOME, DISBURSEMENTS, AND LOSSES

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
T a b le 1 2 5 . RECOVERIES AND LOSSES BY THE FEDERAL DEPOSIT INSURANCE CORPORATION ON PRINCIPAL 

DISBURSEMENTS FOR PROTECTION OF DEPOSITORS, 1 9 3 4 -7 7 

(Amounts in thousands of dollars)

Liquidation 

status and year 

of deposit payoff 

or deposit 

assumption

Deposit payoff cases Deposit assumption cases

Number

of

banks

Principal

disbursements

Recoveries 

to Dec. 31, 

1977

Estimated

additional

recoveries

Number

of

banks

Principal

disbursements2

Recoveries 

to Dec. 31, 

1977

Estimated

additional

recoveries

Number

of

banks

Principal

disbursements3

Recoveries 

to Dec. 31, 

1977

Estimated

additional

recoveries

Total ....

Status

Active . . . 

Terminated

Year4

1934 ....

1935 ....

1936 ....

1937 ....

1938 ....

1939 ....

1940 ....

1941 ....

1942 ....

1943 ....

1944 ....

1945 ....

1946 ....

1947 ....

1948 ....

1949 ....

1950 ....

1951 ....

1952 ....

1953 ....

1954 ....

1955 ....

1956 ....

1957 ....

1958 ....

1959 ....

1960 ....

1961 ....

1963 ....

1964 ....

1965 ....

1966 ....

1967 ....

1968 ....

1969 ....

1970 ....

1971 ....

1972 ....

1973 ....

1974 ....

1975 

1976 ....

1977 ....

71

470

9

25

43

15

20

5

2

1

1

5

3

4

4 

2 

3 

2

2

5 

2

2,314,847

370,863

941

8,891

14,460

19,481

30,479

67,770

74,134

23,880

10,825

7,172

1,503

1,768

265

1,724

2,990

2,552

3,986

1,885

1,369

5,017

913

6,784

3,458

1,031

3,026

1,835

4,765

6,201

19,230

13,744

11,431

8,732

8,120

5,586

37,624

49,318

162,090

16,274

398,810

780,929

303,187

540,183

21,347

982,611

340,823

734

6,206

12,127

15,808

28,055

60,618

70,338

23,290

10,136

7,048

1,462

1,768

265

1,666

2.349 

2,183 

2,601 

1,885

577

5,017

654

6,554

3,245

1,031

2,998

1,738

4,765

4,699

18,792

11,949

6,761

8,232

6,894

5,572

37,463

45,396

152,609

10,630

149,997

141,451

185,257

255,265

7.349

1.105.495

1.105.495

108

160

506

12

127

4

47

2,996

9,080

1,645

98,458

635,878

85,294

260,428

10,748

226,741

30,040

207

2,682

2,333

3,672

2,425

7,152

3,796

591

688

123

40

58

641

369

1,385

' ’ 792

258

230

213

1,502

330

1,635

1,099

11

115

925

400

4,000

150,355

3,600

32,636

24,490

3,250

25

278

325,183

182,511

142,672

941

6,026

7,735

12,365

9,092

26,196

4,895

12,278

1,612

5,500

404

4,438

2.795 

1,031

2.796 

1,835 

4,765 

6,201

19,230

13,744

10,958

735

8,120

' 7,604

29,354

53,791

16,274

16,802

25,991

11,675

131,847

124,743

734

4,274

6,397

9,718

7,908

20,399

4,313

12,065

1,320

5,376

363

4,208

2,582

1,031

2,768

1,738

4,765

4,699

18,792

11,949

6,435

735

6,894

' 7,444 

25,857 

46,095 

10,630 

16,771

7,663

2,667

108

160

506

127

45

2,773

7,296

1,645

31

16,393

5,548

33,961

16,032

17,929

207

1,752

1,338

2,647

1,184

5,797

582

213

292

123

40

230

213

' ’ ' 28 

97

' 1,502 

330 

1,635 

4,017

725

400

4,000

1,935

3,460

46

192

27 

25 

24

28 

24

7

14

1

2,132,336

228,191

2,865

6,725

7,116

21,387

41,574

69,239

11,602

9,213

1,672

1,099

1,768

265

1,724

2,990

2,552

3,986

1,885

1,369

5,017

913

2,346

663

473

7,997

5,586

30,020

19,964

108,299

‘ 382,008 

780,929 

277,196 

528,508 

21,347

850,764

216,080

1,932

5,730

6,090

20,147

40,219

66,025

11,225

8,816

1,672

1,099

1,768

265

1,666

2,349

2,183

2,601

1,885

577

5,017

654

2,346

663

230

326

7,497

5,572

30,019

19,539

106,514

133,226

141,451

177,594

252,598

7,349

1.070.863

1.070.863

4

2

223

1,784

98,427

635,878

68,901

254,880

10,748

222,820

210,709

12,111

930

995

1,025

1,241

1,355

3,214

378

396

58

641

369

1,385

792

258

150,355

3,600

30,701

21,030

3,250

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. 

21ncludes estimated additional disbursements in active cases.

3 Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.

4 No case in 1962 required disbursements.

Note: Due to rounding differences, components may not add to totals.

198 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 126. ANALYSIS OF DISBURSEMENTS, RECOVERIES, AND LOSSES IN DEPOSIT INSURANCE TRANSACTIONS,

JANUARY 1, 1934— DECEMBER 31, 1977 

(In thousands)

Type of disbursement Disbursements Recoveries1 Losses

All disbursements-total2 .............................................................................................................................. $2,982,596 $2,674,293 $308,303

Principal disbursements in deposit assumption and payoff cases-total................................................... 2,685,710 2,428,929 256,781

Loans and assets purchased in liquidations (238 deposit assumption cases):

To December 31, 1977................................................................................................................... 2,151,027 986,844 222,820

Estimated additional..................................................................................................................... 941,363

Notes purchased to facilitate deposit assumptions, mergers, or consolidations:

To December 31, 1977.................................................................................................................. 209,500 80,000 0

Estimated additional..................................................................................................................... 129,500

Deposits paid (303 deposit payoff cases):

To December 31, 1977................................................................................................................. 324,283 256,590 33,961

Estimated additional..................................................................................................................... 900 34,632

Advances and expenses in deposit assumption and payoff cases-total1 ................................................. $ 116,833 $ 99,845 $ 16,988

Expenses in liquidating assets:

Advances to protect assets............................................................................................................. 59,379 59,379 0

Liquidation expenses..................................................................................................................... 40,466 40,466 0

Insurance expenses........................................................................................................................ 8,704 0 8,704

Field payoff and other insurance expenses in deposit payoff cases3 ................................................. 8,284 0 8,284

Other disbursements-total...................................................................................................................... $ 180,053 $ 145,519 $ 34,534

Corporation purchases:

To facilitate termination of liquidations:

To December 31, 1977............................................................................................................. 9,886 5,190 4,000

Estimated additional.................................................................................................. 696

To purchase assets from operating insured banks:

To December 31, 1977............................................................................................................. 33,667 4,636 15,400

Estimated additional................................................................................................................ 13,631

Other assets purchased outright:

To December 31, 1977............................................................................................................. 15,166 111 14,000

Estimated additional................................................................................................................ 1 055

Unallocated insurance expenses3 ....................................................................................................... 1,134 0 1,134

Assistance to operating insured banks:

To December 31, 19774 ................................................................................................................ 120,200 83,200 0

Estimated additional..................................................................................................................... 37,000

1 Excludes amounts returned to closed bank equity-holders and $73.7 million of interest and allowable return received by the FDIC.

2Includes estimated amounts for pending and unpaid claims in active cases.

3Not recoverable.

4Excludes $32 million originally disbursed as assistance to Farmers Bank of the State of Delaware and subsequently applied to assets purchased from operating insured banks.

BANKS CLOSED; FDIC INCOME, DISBURSEMENTS, AND LOSSES 199

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 127. INCOME A N D EXPENSES, F E D E R A L DEPOSIT INSURANCE CO R P O R ATIO N , BY Y E A R , FROM B E G IN N IN G OF O PER ATION S,

SEPTEMBER 11, 1933, TO DECEMBER 31, 1977 

(In millions)

Year

Income Expenses and losses

Net income added to 

Total deposit insurance fund4

Deposit insurance 

assessments1

Investments and 

other sources2 Total

Deposit insurance losses 

and expenses

Interest on 

capital stock3

Administrative and 

operating expenses

T o ta l.......................................... $9,314.0 $4,655.3 $4,658.7 $1,321.2 $310.3 $80.6 $930.3 $7,992.8

1977 .......................................... 837 8 319.4 518.4 113.6 24.3 89.3 724.2

1976 .......................................... 764.9 296.5 468.4 212.35 31.9 180.45 552.6

1975 .......................................... 689 3 278.9 4104 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

1 9 6 1 .......................................... 147.3 73.4 73.9 14.8 1.6 13.2 132.5

1960 .......................................... 144.6 79.6 65.0 12.5 0.1 12.4 132.1

1959 136.5 78.6 57.9 12.1 0.2 11.9 124.4

1958 . . ..................... 126.8 73.8 53.0 11.6 11.6 115.2

1957 .......................................... 117.3 69.1 48.2 9.7 0.1 9.6 107.6

1956 .......................................... 111.9 68.2 43.7 9.4 0.3 9.1 102.5

1955 .......................................... 105.7 66.1 39.6 9.0 0.3 8.7 96.7

1954 .......................................... 99.7 62.4 37.3 7.8 0.1 7.7 91.9

1953 .......................................... 94.2 60.2 34.0 7.3 0.1 7.2 86.9

1952 .................................... 88.6 57.3 31.3 7.8 0.8 7.0 80.8

1 9 5 1 .......................................... 83.5 54.3 29.2 6.6 6.6 76.9

1950 .......................................... 84.8 54.2 30.6 7.8 ’ 1.4 6.4 77.0

1949 .......................................... 151.1 122.7 28.4 6.4 0.3 6.1 144.7

1948 .......................................... 145.6 119.3 26.3 7.0 0.7 0.6 5.7 138.6

1947 .......................................... 157.5 114.4 43.1 9.9 0.1 4.8 5.0 147.6

1946 .......................................... 130.7 107.0 23.7 10.0 0.1 5.8 4.1 120.7

1945 .......................................... 121.0 93.7 27.3 9.4 0.1 5.8 3.5 111.6

1944 .......................................... 99.3 80.9 18.4 9.3 0.1 5.8 3.4 90.0

1943 .......................................... 86.6 70.0 16.6 9.8 0.2 5.8 3.8 76.8

1942 .......................................... 69.1 56.5 12.6 10.1 0.5 5.8 3.8 59.0

1 9 4 1 .......................................... 62.0 51.4 10.6 10.1 0.6 5.8 3.7 51.9

1940 .......................................... 55.9 46.2 9.7 12.9 3.5 5.8 3.6 43.0

1939 .......................................... 51.2 40.7 10.5 16.4 7.2 5.8 3.4 34.8

1938 .......................................... 47.7 38.3 9.4 11.3 2.5 5.8 3.0 36.4

1937 .......................................... 48.2 38.8 9.4 12.2 3.7 5.8 2.7 36.0

1936 .......................................... 43.8 35.6 8.2 10.9 2.6 5.8 2.5 32.9

1935 .......................................... 20.8 11.5 9.3 11.3 2.8 5.8 2.7 9.5

1933-34.................................... 7.0 (4 ) 7.0 10.0 0.2 5.6 4.26 -3 .0

1 For the period from 1950 to 1977, inclusive, figures are net after deducting the portion of net assessment income credited to insured banks pursuant to provisions of the Federal Deposit Insurance Act of 1950, as amended. Assessment credits 

to insured banks for these years amount to $4,847 million.

in cludes $14 million of interest and allowable return received on funds advanced to receivership and deposit assumption cases and $61 million of interest on capital notes advanced to facilitate deposit assumption transactions and assistance to 

open banks.

3Paid in 1950 and 1951, but allocated among years to which it applies. Initial capital of $289 million was retired by payments to the U.S. Treasury in 1947 and 1948.

4Assessments collected from members of the temporary insurance funds which became insured under the permanent plan were credited to their accounts at the termination of the temporary funds and were applied toward payment of subsequent assessments becoming due under the permanent insurance fund, resulting in no income to the Corporation from assessments during the existence o f the temporary insurance funds.

5 Includes net loss on sales of U.S. Government securities of $105.6 million.

6 Net after deducting the portion of expenses and losses charged to banks withdrawing from the temporary insurance funds on June 30, 1934.

200 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 128. PROTECTION OF DEPOSITORS OF FAILED BANKS REQUIRING 

DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, 

1934-1977

Item

Number of depositors or accounts-total1......................

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

From FDIC2..........................................................

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

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

From asset liquidation6 .......................................

Full recovery not received as of December 31,1977 .

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

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

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

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

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

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

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

By asset liquidation1 0 ..........................................

Not paid as of December 31,1977 ............................

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

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

All cases 

(541 banks)

Deposit payoff cases 

(303 banks)

Deposit assumption cases 

(238 banks)

Number or Number or Number or

amount Percent amount Percent amount Percent

3,400,490 100.0 623,030 100.0 2,777,460 100.0

3,395,245 99.8 617,785 99.2 2,777,460 100.0

3,347,732 98.4 570,2723 91.6 2,777,460 100.0

41,092 1.2 41,092 6.6

3,279 0.1 3,279 0.5

3,142 0.1 3,142 0.5

5,245 0.2 5,245 0.8

3,505 0.1 3,505 0.5

1,740 0.1 1,740 0.3

5,043,125 100.0 468,247 100.0 4,574,878 100.0

5,025,932 99.7 451,054 96.3 4,574,878 100.0

4,900,561 97.2 325,6837 69.5 4,574,878 100.0

23,706 0.5 23,706 5.1

53,487 1.0 53,487 11.4

48,178 1.0 48,178 10.3

17,193 0.3 17,193 3.7

2,962 0.1 2,962 0.6

14,231 0.2 14,231 3.1

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

2Through direct payment to depositors in deposit payoff cases; through assumption of deposits by other insured banks, facilitated by FDIC disbursements of $2,360,527 thousand, in deposit assumption cases.

3lncludes 60,586 depositors, in terminated cases, who failed to claim their insured deposits (see note 7).

^Includes only depositors with claims offset in full; most of these would have been fully protected by insurance in the absence of offsets.

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

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

7Includes $352 thousand unclaimed insured deposits in terminated cases (see note 3).

includes all amounts paid by offset.

9lncludes ail secured and preferred claims paid from asset liquidation; excludes secured and preferred claims paid by the Corporation.

10lncludes unclaimed deposits paid to authorized public custodians.

111ncludes $4,805 thousand representing deposits available, expected through offset, or expected from proceeds of liquidation.

BANKS CLOSED; FDIC INCOME, DISBURSEMENTS, AND LOSSES 201

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
T a b le 1 2 9 . INSURED DEPOSITS AND THE DEPOSIT INSURANCE FUND, 1 9 3 4 - 1 9 7 7

Year (December 31)

Deposits in insured banks 

(in millions)

Percentage of 

deposits insured

Deposit insurance fund 

(in millions)

Ratio of deposit insurance fund t o -

Total Insured1 Total deposits Insured deposits

1977 .......................................... $1,050,435 $692,533 65.9% $7,992.8 .76% 1.15%

1976 .......................................... 941,923 628,263 66.7 7,268.6 .77 1.16

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 17 0,2104 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.

202 FEDERAL DEPOSIT INSURANCE C O R P O R A T IO N

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INDEX

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INDEX 205

Absorptions:

Of insured banks requiring disbursements by FDIC. See 

Banks in financial difficulties.

Of operating banks, 1977 ............................................................................................15

Of operating banks approved by FDIC, 1977 ............................................ 15, 53-112

Of operating banks denied by FDIC, 1977 ..................................................... 113-119

Regulation of .........................................................................................................15-16

Admission of banks to insurance. See also Applications from banks:

Applications for, 1977 .......................................................................................... 13-14

Number of banks admitted, by class of bank, 1977 .............................................. 132

Applications from banks ................................................................................................ 13-16

Areas outside continental United States, banks and branches located in:

Number, December 31, 1977 .......................................................................... 135,143

Assessments for deposit insurance .................................................................................32-33

Assets and liabilities of F D IC .................................................................. 31-32, 34-35, 38-39

Assets, liabilities, and capital of banks. See also Deposits:

Commercial banks:

Foreign, of U.S. b an ks..................................................................151-152, 166-167

Grouped by insurance status,

June 30, 1977, and December 31, 1977 ................................................ 153-160

Sources of data.......................................................................................................176

Insured commercial banks:

Amounts, December call dates, 1972-1977 .............................................. 163-165

Amounts, June 30, 1977, and December 31, 1977,

by class of bank..........................................................................................153-160

Major categories, average, 1972-1977 ..................................................................179

Percentage distribution, by size of bank, 1977 .......................................... 172-174

Percentages of items, by size of bank, 1977 .......................................................170

Insured mutual savings banks:

Amounts, December call dates, 1972-1977 ............................................ 168-169

Major categories, average, 1972-1977 ............... ............................................. 188

Percentages of items, by size of bank, 1977 .................................................. 171

Methods of tabulating d a ta ...............................................................................151-152

Mutual savings banks:

Grouped by insurance status, June 30, 1977, and December 31,

1977 ........................................................................................................... 161-162

Sources of d a ta ........................................................................................................... 176

Assets, purchase of, by FDIC from banks in financial difficulties...............................19-21

Assumption of deposits of insured banks with financial aid of FDIC.

See Banks in financial difficulties.

Attorney General of the United States................................................................................. 15

Attorney General of the United States, summary

reports on absorptions................................................................................................ 59-118

Audit of F D IC ........................................................................................................................ 31

Bad-debt reserves. See Valuation reserves.

Banco Economias, Puerto R ico.............................................................................................20

Bank Administration In s titu te .............................................................................................. 18

Bank control, changes, regulation of .............................................................................16-17

Bank holding companies, supervision o f .............................................................................6-7

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206 FEDERAL DEPOSIT INSURANCE CORPORATION

Bank Holding Company A c t. 

Bank Merger Act of 1960 . . . 

Bank Protection Act of 1968

. .124 

15-16 

. . .17

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 ..........................................................................................194

Deposit size o f .......................................................................................................196

Deposits protected, 1934-1977 ..............................................18-20, 195-196, 201

Disbursements by FDIC, 1934-1977 ......................................................... 195-199

Failures in 1977 ................................................................................... xi, 19-21, 194

Loans made and assets purchased by FDIC .................................18-23, 34, 38-39

Location by State, 1934-1977 .................................................................... 196-197

Losses incurred by depositors...............................................................................201

Losses incurred by FDIC ...................................................................... 23, 198-199

Number of, 1934-1977 ................................................................................... 19, 193

Number of deposit accounts, 1934-1977 .......................................... 195-196,201

Recoveries by FDIC on assets acquired, 1934-1977 .......................... 22, 198-199

Noninsured banks:

Number and deposits of commercial banks closed,

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:

Applications, FDIC policy on legal fees ............................................................. 14-15

Establishment approved by FDIC, 1977 ....................................................................14

Examination of, 1976 and 1977 ................................................................................... 6

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 ....................................................................xi, 8-10, 26, 43-50

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 ................................................................................................................132

Income of insured commercial banks, 1977 .................................................. 181-182

Insured banks requiring disbursements by FDIC, 1934-1977 ...............................195

Number of banks and banking offices, 1977 .......................................... 132, 136-144

Number of banks and assets ..................................................................................... 145

Classification of ban ks......................................................................................................... 131

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.

1934-1977 193

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Commission on Federal Paperwork ......................................................................................18

Community Reinvestment A c t........................................................................ xi, xiv, 25, 123

Compliance examinations................................................................................................ 25-27

Comptroller of the Currency ............................................xiii-xiv, 6-7, 15, 17-18, 123, 127

Consolidations. See Absorptions.

Credit, bank. See Assets, liabilities, and capital of banks.

Credit union s.........................................................................................................................123

Crime reports received by F D IC ............................................................................................17

Demand deposits. See Assets, liabilities, and capital of banks; Deposits.

Deposit insurance, applications fo r ................................................................................. 13-14

Depository Institutions Amendments of 1977 A c t........................................................... 123

Deposits. See also Assets, liabilities, and capital of banks:

Banks closed because of financial difficulties, 1934-1977 .........22-23, 193, 195-196

Commercial banks:

By insurance status and type of bank, and type of account,

June 30, 1977 ......................................................................................................... 155

By insurance status and type of bank, and type of account,

December 31, 1977 ................................................................................................ 159

By State and asset size of b a n k ...................................................................... 146-150

Insured commercial banks:

Average demand and time deposits, 1972-1977.....................................................179

December call dates, 1972-1977 .................................................................... 164-165

Insured mutual savings banks:

Average demand and time deposits, 1972-1977 ................................................ 188

December call dates, 1972-1977 ...........................................................................169

Mutual savings banks, by insurance status, June 30, 1977, and

December 31, 1977 ................................................................................. 162

Deposits insured by FDIC:

Estimated insured deposits, December 31, 1934-1977 ..........................................202

Maximum per depositor, changes in ........................................................................ 125

Survey of, on June 30, 1977 ........................................................................................18

Deposits, number of insured commercial banks with given ratios of

demand to total deposits...................................................................................................173

Directors of banks ....................................................................................................... xi-xiii, 3

Directors of FDIC. See Federal Deposit Insurance Corporation.

Disbursements. See Banks in financial difficulties.

Disclosure of bank re p o rts............................................................................................ 31, 126

Dividends:

To depositors in insured mutual savings banks. See Income of insured 

mutual savings banks.

To stockholders of insured commercial banks. See Income of insured 

commercial banks.

Earnings of banks. See Income of insured commercial banks; Income of insured

mutual savings banks.

Employees:

F D IC .........................................................................................................................29-30

Insured commercial banks,

number and compensation, 1972-1977 ....................................................... 178-179

Insured mutual savings banks, number and 

compensation, 1972-1977 ............................................................................. 187-188

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Equal Credit Opportunity A c t ........................................................................................25-27

Examination of insured banks:

By FDIC, 1977 ................................................................................... xi-xiii, 3-8, 25-26

Regions and regional directors ................................................................................... vi

Expenses of banks. See Income of insured commercial banks;

Income of insured mutual savings banks.

Expenses of FDIC ............................................................................................ 32-33, 36, 200

Failures, See Banks in financial difficulties.

Fair Credit Billing A c t ........................................................................................................... 27

Fair Credit Reporting Act .....................................................................................................25

Fair Debt Collection Practices A c t ..................................................................................... 123

Fair Housing Lending.................................................................................xi, xiii, 25-26, 127

Farmers Bank of the State of Delaware ..................................................................21, 23,38

Federal Deposit Insurance Corporation:

Actions on applications..........................................................................................13-16

Assessments on insured banks...........................................................32-33, 35-38, 200

Audit ............................................................................................................................31

Banks examined by, and submitting reports t o ........................................................... 3

Borrowing power .........................................................................................................32

Capital sto ck................................................................................................................200

Consumer protection ............................................................................................25-27

Coverage of deposit insurance..................................................................x, 18-19, 125

Delegated authority, applications approved under .................................................. 14

Deposit insurance disbursements.....................................................19, 21-23, 194-199

Deposit insurance fund (surplus).................................................. 32, 35-36, 200, 202

Directors (members of the Board)....................................................................v, 28, 30

Disclosure..............................................................................................................31, 126

Divisions............................................................................................................. iv, 28-31

Employees ............................................................................................................. 29-30

Enforcement activities .................................................................................8-12, 43-50

Equal Employment Opportunity Program ................................................................29

Examination of banks...........................................................................xi-xii, 3-9, 25-26

Financial statements, 1977 ................................................................................... 31-39

Income and expenses, 1933-1977 .............................................................................200

Insured banks requiring disbursements by. See Banks in 

financial difficulties.

Integrated Monitoring System (IM S ).......................................................................... 12

Liquidation activities ........................................................................ xi-xii, 23-25, 201

Loans to, and purchase of assets from, insured banks....................................... 19-21

Losses incurred, 1934-1977 ...................................................................... 22, 198-200

Methods of protecting depositors........................................................................ 18-25

Office of Consumer Affairs and Civil R ights............................................................. 27

Office of Personnel Management................................................................................. 29

Officials ........................................................................................................................ v

Organization.................................................................................................................. iv

Payments to insured depositors..................................................... 22-23, 195-199,201

Problem banks ............................................................................................ xi-xiii, 10-12

Receiver, FDIC a s ......................................................................................................... 25

Recoveries..................................................................................................... 22, 198-199

Regions..........................................................................................................................vi

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Regulation of bank securities ...................................................................... 27-28, 126

Regulation of interest rates...............................................................................124-125

Reports from banks ..................................................................................... 12, 18, 126

Reports of changes in bank co ntrol...................................................................... 16-17

Research D ivisio n ......................................................................................................... 28

Reserve for losses on assets acquired....................................................... 34, 36, 38-39

Rules and regulations ........................................................................................124-127

Sources and application of funds ...............................................................................37

Supervisory responsibility.............................................................................................. 3

Surveys during 1977 .....................................................................................................18

Training programs.................................................................................................. 30-31

Federal Home Loan Bank Board .......................................................x ir xiii-xiv, 17, 26, 123

Federal legislation, 1977 ............................................................................................ 123-124

Federal Reserve authorities .............................xi,xiii, 6-7, 15, 17-18, 23, 31, 123-124, 127

Federal Reserve member banks. See Class of bank, banking data presented by.

Flood Disaster Protection Act of 1973 ...................................................................... 126-127

Franklin National Bank .......................................................................... xi-xii, 23, 25, 37-39

Freedom of Information Act-Privacy A c t........................................................... 31, 124, 126

General Accounting O ffic e ........................................................................................17-18, 31

“ Government in the Sunshine" A c t ................................................................................... 124

Home Mortgage Disclosure Act of 1975 ........................................................... xi, xiv, 25-26

Income of F D IC .......................................................................................... 32-33, 36, 38, 200

Income of insured commercial banks:

Amounts of principal components:

Annually, 1972-1977 ................................................................................... 178-179

By class of bank, 1977 ................................................................................. 181-182

By size of bank, 1977 ................................................................................... 183-184

Methods of tabulating d a ta .......................................................................... 175-177

Ratios of income items:

Annually, 1972-1977 ............................................................................................180

By size of bank, 1977 ................................................................................... 185-186

Sources of d a ta ........................................................................................................... 176

Income of insured mutual savings banks:

Amounts of principal components,1972-1977 .............................................. 187-188

Ratios of income and expense items,1972-1977 ............................................ 189-190

Sources of d a ta ........................................................................................................... 176

Insider transactions .........................................................................................................xi, xiii

Insolvent banks. See Banks in financial difficulties.

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; FDIC, coverage 

of deposit insurance.

Insured State banks members of the Federal Reserve System. See Class of bank, 

banking data presented by.

Interest rates:

Maximum rates on deposits...............................................................................123-125

Paid on deposits................................................................................................ 180,190

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210 FEDERAL DEPOSIT INSURANCE CORPORATION

Payment on Individual Retirement A cco unts.........................................................124

Surveys of:

Loans to businesses and farmers...............................................................................18

Mortgage lending activity and ra te s ........................................................................ 18

Rates paid by banks...................................................................................................18

I nvestment Company Act of 1940..................................................................................... 125

Investments. See Assets, liabilities, and capital of banks; Assets and 

liabilities of FDIC; Banks in financial difficulties.

Keogh retirement plans ....................................... ...............................................................124

Legislation relating to deposit insurance and banking,

Federal, enacted in 1977 ................................................................................... 123-124

Lesser developed countries, loans t o ..................................................................................... 12

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 ............................................................................... 22-23, 33, 36-38, 198-200

On loans, reserves for. See Valuation reserves.

Provision for, in insured banks ............................. 178, 180-181, 183, 185, 187, 189

Mergers. See Absorptions.

Mortgage lending by insured commercial banks, survey o f ................................................ 18

Municipal Securities Rulemaking B oard...............................................................................28

Mutual savings banks. See Assets, liabilities, and capital of banks;

Deposits; Income of insured banks; Number of banks and branches.

National Association of Securities Dealers.......................................................................... 28

National banks. See Class of bank, banking data presented by.

National Credit Union A dm inistration........................................................................ 17, 127

New banks, 1977 ................................................................................................ 132, 134-135

Noninsured banks. See 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, 1977, and

December 31, 1977 .............................................................................156,160,162

By insurance status, type of bank, number of branches, and

State, December 31, 1977 .......................................................................... 136-144

By State and asset size of b a n k ....................................................................146-150

By supervisory status and asset size...................................................................... 145

Changes during 1977 ..................................................................................... 132-135

Branches:

By insurance status and type of bank, December 31, 1977 ...............................133

By insurance status, type of bank, and State, December 31, 1977 ......... 136-144

Changes during 1977 ..................................................................................... 133-135

Insured commercial banks:

December call dates, 1972-1977 ...............................................................................165

Distributed by capital ratios and distribution of assets and 

deposits, December 31, 1977 ........................................................................ 172-174

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Insured mutual savings banks:

December call dates, 1972-1977 ...............................................................................169

Noninsured banks by State, December 31, 1977 ............................................ 136-144

Unit banks, by insurance status and State, December 31, 1977 .................. 136-144

Obligations of banks. See Assets, liabilities, and capital of banks.

Officials of F D IC .................................................................................................................... v

Operating banks. See Number of banks and branches.

Overdrafts, survey o f ...........................................................................................................xiii

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.

Problem b an ks.......................................................................................................xi-xii, 10-12

Protection of depositors. See Banks in financial difficulties; Deposit 

insurance coverage.

Real Estate Settlement Procedures Act of 1974 ..................................................................25

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..............................................................................................................10

Reports from b a n ks.......................................................................................................18, 126

Reserves:

Of FDIC, for losses on assets acquired ......................................................... 34, 38-39

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 time deposits. See also Deposits ........................................................... 124-125

Secretary of the Treasury.....................................................................................................123

Securities. See Assets, liabilities, and capital of banks; Assets and liabilities of FDIC;

Banks in financial difficulties.

Securities Acts Amendments of 1975 ................................................................................... 28

Securities and Exchange Commission.................................................................... 27-28, 125

Securities, bank, regulation of ............................................................................... 27-28, 126

Securities Exchange Act of 1934 .......................................................................... 27-28, 126

Security, bank ...................................................................................................................... 17

Size of bank, data for banks classified by amount of assets:

Assets and liabilities, percentages of, insured banks, 1977 .......................... 170-171

Banks requiring disbursements by FDIC, (deposit size) 1934-1977 ......................196

Income of insured commercial banks, 1977 .................................................. 183-184

Income ratios of insured commercial banks, 1977 ....................................... 185-186

Number, assets, and deposits of all b a n ks................................................................145

Number, assets, and deposits of all commercial banks, by S ta te ..................146-150

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212 FEDERAL DEPOSIT INSURANCE CORPORATION

Number of employees of insured commercial banks, 1977 ...................................184

Number of insured commercial banks, grouped by ratios of selected

items to assets and deposits, December 31, 1977 ................. ..................... 172-174

Southeast Banking Corporation of M iam i.............................................................................20

Southern Bancorporation, Inc.................................................................................................39

State, banking data classified by:

Changes in commercial banks and branches, 1977 ....................................... 134-135

Disbursements, deposits, and depositors in insured banks requiring

disbursements by FDIC, 1934-1977 ............................................................. 196-197

Number, assets, and deposits of commercial

banks, by asset size of b a n k .......................................................................... 146-150

Number of banks and branches, by class of bank and type of office,

December 31, 1977 ........................................................................................ 136-144

Percentage of banks insured, December 31, 1977 .......................................... 136-144

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 bank holding companies.............................................................................6-7

Supervision of banks by F D IC ................................................................................................ 3

Supervisory class, banks grouped by:

Assets and liabilities of, June 30, 1977, and December 31, 1977 ............... 153-160

Changes in number of, 1977 ............................................................................. 132-133

Number of banks and size..........................................................................................145

Income of insured commercial b a n k s ............................................................. 181-182

Number of banking offices, by State, December 31, 1977 .......................... 136-144

Suspension proceedings ................................................................................................ 10, 124

Tax and Loan Accounts B ill................................................................................................ 123

Taxes paid by insured banks. See Income of insured commercial banks;

Income of insured mutual savings banks.

Terminations of insurance for unsafe and unsound practices.................................9-10, 43

Trust activities of banks, examination o f ...............................................................................8

Trust assets of insured commercial banks, survey o f ........................................................... 18

Truth in Lending A c t ..................................................................................... xiv, 25, 27, 127

Unit banks, by insurance status and State, December 31, 1977 ............................ 136-144

United States National Bank ................................................................................................ 20

Valuation reserves. See also Assets, liabilities, and capital of banks:

Amounts held, June 30, 1977, and December 31, 1977 ...............................154, 158

Amounts held, December call dates, 1972-1977 ............................................163, 164

Violations of law or regulations, banks charged w it h .....................................................8-10

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