The Republican. [volume] (Oakland, Md.) 1877-current, 1958-01-16
Capital Stock
OF First National
To Be Increased
Important Changes In Cupi
tuI Structure Of Institu-
ton Announced

Several important changes in
the capital structure of the First
National Bank in Oakland were
authorized, subject to approval of
the Comptroller of the Currency,
at the annual meeting of the stock
holders of the bank held Tuesday
in the board of directors room.
The capital stock which has been
$4,000, made up of 1000 shares
with a par value of $50 each, will
under the plan approved be raised
to 100000, to be made up of 10000
shares, with a par value of $40
each. Holders of the present $50
par stock will receive 5 shares of
the new $40 par stock in exchange
for each share now held, and an
additional 10 shares of the new
stock as a stock dividend.
There will then be issued by the
bank 5000 additional shares of the
new stock at a sale price of $50
per share. Under provisions of the
bylaws of the bank the new stock
will first be offered to the present
shareholders in proportion to their
present holdings. Any stock which
is not subscribed for by the pres
ent stockholders will be offered to
the public at the same price. War
rants for the purchase of the stock
are to be issued to the present
stockholders who may exercise the
right to purchase or may sell or
assign their rights under the war
rant if they desire.
The total capital funds, accord
ing to the bank statement as of De-
cember 81, we're slightly over $685.
900. With the increase of 100000
received from the sale Of the new
stock, the total capital funds will
top $595,OO0 which will give each
share of $40 par stock book
value of approximately S2975.
A. D. Naylor, president of the
bank. said the banks action in in
creasing the capital funds was in
line with action of many other
banks. He pointed out the purpose
was to provide a bank which will
be able to continue to serve
growing Oakland and the surround
ing community with increasing ac-
commodations and responsibility.
He said it would give the bank
capital structure that would sup
port a substantial deposit growth
over the years.
Mr.. Naylor said in providing
basic capital of 100000 repre-
scented by the capital stock and
with surplus of 100000, together
with undivided profits and re-
serves, that there was an adequate
and we'll rounded capital structure
with a ratio of capital funds to
total deposits as high or higher
than the average. He showed this
benefited the depositor by provid-
ing high degree of protection for
his deposits and benefits the bank
by having more capital funds avail
able for its own investment.
He explained that the last change
in the capital structure was made
in 1902 when the total assets Of
the bank we're $256,O00. AT that
time the capital stock was in
creased from $4,000 to $4,000
He concluded by saying The
bank has grown with the COM
munity and it is the intention and
plan of the management to con-
tinuc to grow with it and to be a
contributing force in its growth
The bank has, and will continue to
have a conservative policy cstab-
lished to provide service with
safety to its depositors and avail
ability and assistance to its bor-
rO,UprS "