Evening star., 1938-05-28
HOME LOAN BANK
SYSTEM GROWS
Adds a. Institutions, With
Nearly so Million Assets,
in Three Months.

The Federal Home Loan Bank Sys-
tenn continued during the first quarter
OF 1888 the steady growth of the last
flve years, adding A new institutions
with assets of nearly $50,000,00 to its
membership, Preston Delano, governor
OF the system, announced today.
Expansion of this national credit
reservoir for home financing and thrift
institutions during the first three
months of the year exceeded that of
the last quarter Of 1887, when 80 new
members were admitted. The system
as of March 81 had total member
ship of 1899 institutions with re-
sources of approximately $4,183, ,900,-
600. In addition preliminary report
for April 80 showed a total member
ship of 3,943 and assets totaling $4,-
196.553,000.
The great bulk of the systems men,
.bership consists of savings and loan
associations, but mutual savings banks
and insurance companies also are
eligible for membership. Insurance
companies have recently shown an in
creasing desire to avail themselves of
the bank systems facilities. Admis-
sion during the quarterly period of
seven, having assets of SIS, ,761 900,
marked Is per cent growth in the
membership of this type of institution.
Profit Increases.
The net profit of the IL Federal
Home Loan Banks for the first quarter
of 1888 was $1016,83397, as compared
with 1891, ,10995 for the corresponding
period of 1887, or net gain of $685.
724.02. Mr.. Delano's report showed
, During the first quarter of this year
13 savings and loan associations con-
verted from State to Federal charters.
Membership in the bank system is
mandatory for Federal associations.
ate-chartered institutions are &C
cepted as members on their voluntary
application after meeting certain re-
quirements as to financial soundness
and competent administration.
Concurrent with Mr. Delano's an
nouncement of the growth of the
bank system, CorWin A. Fergus chief
of the division of research and sta
tistics of the Federal Home Loan
Bank Board, made public a statistical
study of the home financing and thrift
institutions of America, both in and
out of the system.
Types Enumerated.
Measured by assets, Federal savings
and loan associations which have
converted from State to Federal char
ter are the largest type of institution,
having average resources of S1,215,000.
Other types, with their average assets.
are: Federal associations organized
since their chartering was authorized
by Congress in 1888, S375,000 State
chartered savings and loan associa-
tions which are members of the bank
system, $96l.0 900; non-member State
chartered savings and loan associa-
tions, s537,O00; general average for
all associations, $4,000.
The membership of the bank sys-
tenn as of March 81, it was revealed.
included 1896 savings and loan asso-
Citations, 8 savings banks and 35 in
surance companies. The first type
represented 86.2 per cent of the COM
bined assets of all members of the
system.
The study by Fergus revealed that
at the present time the bank system
includes some 40 per cent of the esti-
mated number of all savings and loan
associations in the United States, con-
sisting of about 300 associations, with
total assets OF $3.50 100000 This
40 per cent, however. holds 81 per
cent of the estimated total assets of
all such institutions.