Opinion ID: 6260241
Heading Depth: 1
Heading Rank: 2

Heading: Alleged Error in Granting the Application

Text: Appellants further contend that the record does not support the Department’s conclusion that a branch bank may be established at the proposed location. The evaluation of all this evidence, some of it conflicting, some of it merely deductions and conclusions from all the data submitted to or gathered by the Department, is sometimes difficult. However, we must approach this and similar cases mindful of what this Court aptly said in Blairsville National Bank v. Myers, 409 Pa. 526, 533-534, 187 A. 2d 655: “A Supreme Court cannot be a Secretary of Banking or a Department of Banking or a Banking Board. These men are not only experts in the technical, field of banking, but they may have knowledge of intangibles and imponderables, of strengths and weaknesses which may exist in a particular bank or in the broad banking situation in that banking area which are not clearly or definitely or concretely disclosed in the cold, bare record. For these reasons much must be left to the discretion of the Secretary of Banking or, as the case may be, to the Banking Board. “We are well aware of the accuracy of the statements in Philadelphia Saving Fund Society v. Myers, 406 Pa., supra, where the Court said (pp. 449-450) : ‘The question of whether there is a need for the services and facilities of an additional bank or branch is sometimes a delicate and difficult one. The dangers inherent in any situation which may possibly or likely create an overbanked area that may likely weaken or destroy some existing banks to the detriment of depositors, creditors, stockholders, and the public alike, must never be forgotten or minimized . . . “ ‘. Part of the powers and duties of the Department of Banking ... is to determine . . . whether the community served and from which a bank draws its depositors and clients has adequate banking facilities and is not overbanked . . . “. . . the clear intention of the statute ... is the same: to guard against ‘overbanking’ on the one hand, and ‘underbanking’ on the other; . . ”” However, we appropriately added: “‘Where a Board [or Department] is composed of able and experienced experts who are dealing with technical questions, a Court should be loath to find a clear abuse of discretion upon a subject or subjects as to which they are far better qualified than any Court.” ’ ” As this Court said in Delaware County National Bank v. Campbell, 378 Pa. 311, 106 A. 2d 416 (pages 327-328): “We will not overrule or reverse the Banking Board if there is adequate evidence to support its findings of fact and the proceeding is free from error of law and there has been no clear abuse of discretion. Cf. Rolling Green Golf Club Case, 374 Pa. 450, 458, 97 A. 2d 523.” In First Bellefonte Bank and Trust Company v. Myers, 410 Pa. 298,188 A. 2d 726, the Court pertinently said (pages 302-303) : “In this case and in other similar  cases it will be necessary for the applicant to prove (1) that substantially different circumstances or conditions exist from those which existed at the time and place of the rejected application for a branch bank, and (2) that ‘ “there is a need for banking services or facilities such as are contemplated by the establishment of such branch [citing cases].” ’ Philadelphia. Saving Fund Society v. Myers, 406 Pa., supra; cf. also Blairsville National Bank v. Myers, supra.” ill. The Facts With this in mind, I turn now to a brief discussion of the evidence presented in this case. American’s initial Application for a branch bank cited a substantial increase in demands for service from customers in the Lancaster area. This demand had developed since the denial of American’s previous Application in 1965. The present Application noted further that American was unable to make requested loans to customers in the Lancaster area because it had no depositors in that area to support the loans. The Application also noted, the increasing traffic and congestion in the Lancaster área and stated that not only would the proposed bank have three “drive-in” windows, but also there would be convenient parking facilities at the new location to make banking easier for the public. The investigators’ report set forth inter alia these reasons for granting the Application for this branch. The report stated. that the proposed location would “provide for the first time more convenient banking services to the present customers [of American].” In addition, the investigators’ report noted that several other local banks in Lancaster were conducting negotiations intending to merge with other banks nearby. They especially noted the proposed merger of the Lancaster County Farmers Bánk with banks in Reading and York. They concluded that if these mergers were to take place, competition in the Lancaster area would be maintained on a more favorable level if the proposed branch bank were allowed. All these facts and factors were presented to the Department before the first authorization was granted. When that authorization was withdrawn at the request of the Protesting Banks, additional evidence was then presented by American, as well as by the Protesting Banks. The evidence presented by American stressed more fully the changes and circumstances since the denial of American’s prior Application in 1965. In particular, the report stressed that the so-called “conservative” city banks were not adequately serving the Lancaster area and that allowing American to open a branch in Lancaster would provide competition which would improve banking services in the area generally. The report also noted the rapid growth of Lancaster County and the extensive urban renewal project designed to promote economic growth in the City. All of this evidence was considered before the second authorization was granted on May 19, 1969. The findings of fact filed with that authorization indicate that the Department agreed with American’s view of the trend of economic development in Lancaster County and the need for further banking services and increased competition in the banking business. I have studied the record carefully and am convinced that thé evidence presented by American to establish a need for this branch bank adequately and amply demonstrated that circumstances had changed since its prior Application, and that there was. a definite need for this branch bank. The Protesting Banks finally contend that the Department of Banking erred in some fashion when it made Supplemental Findings of Fact and Conclusions of Law after the Protesting Banks had filed their petition for review of the decision. We note that there is no requirement that the Department of Banking make any such findings in cases where an Application for a branch bank is granted. It is only where an Application is disapproved that findings must be made. Banking Code of 1965, Section 905(c). This Court noted in Cement National Bank v. Department of Banking, 425 Pa., supra (page 560) : “However, we again emphasize, as we did in Blairsville National Bank v. Myers, 409 Pa. 526, 534, 187 A. 2d 655, the desirability of having the Department make findings of fact and conclusions —Avhich in their discretion may be brief—whenever protests are filed against the grant of a neAv bank or of a merger, or of a branch bank, in order to support the Department’s final decision. This practice is especially desirable where an appeal by broad certiorari is allowed by this Court.” This advice was followed in this case by the Department of Banking, and I appreciate the additional guidanee of the Supplemental Findings of Fact and Conclusions of Law. In my opinion, the Department of Banking in approving the proposed branch was not guilty of an abuse of discretion or an error of law and its findings were supported by substantial evidence. The majority Opinion which finds a violation of due process is so unrealistic and farfetched as to be almost unbelievable. I would affirm the Order of the Department of Banking.