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UUSSEL.L, G . SMITH EXECUTIVE VICE PRESIDENT B A for N K FRASER OF AMERICA Digitized NATIONAL TRUST AND SAVINGS ASSOCIATION SAN FRANCISCO CALIFORNIA CORRESH55 1-40 w T O I ^ I V A II.MEDIA.TELY Release on or after E D I T O K S . . . Here is a BANK of AMERICA NEWS DISPATCH The year end. statement of condition of Bank of America reveals the achievement of new all-time high marks i n v i r t u a l l y a l l of the bank's a c t i v i t i e s . This satisfactory result is attributed by L. M. Giannini, president, to expansion of business i n the t e r r i t o r y served and increasing public acceptance and use of the f a c i l i t i e s and services of California's only statewide branch bank. As of December 31, 1940, Bank of Americra deposits totaled $1,632,223,000, an increase of $149,436,000 during the year. Total resources stood at 817,535,000, a gain of $188,948,000 i n the same period. The aggregate of loans and discounts outstanding was $778,295,000, which is 167,240,000 more than a year ago. Cash and bonds amounted to $977,032,000, an increase of $124,497,000. With the $30,000,000 of preferred stock subscribed by stockholders on June 1940j capital funds, including capital, surplus, undivided p r o f i t s and reserves, now t o t a l |156,337,000, an increase of $37,484,000 during the year. This t o t a l includes the unallocated reserve of $6,900,000 which was set up on June 10j 1940, out of proviously accumulated undivided p r o f i t s . Earnings for the year were $29,007,000, the largost for any one year i n the history of the bank. From t h i s t o t a l #4,370,000 was reserved f o r depreciation of bank premises and amortization of bond premiums and $5,709,000 i n reserves was sot up and applied t o the reduction of the carrying value of assets. After payment of $10,265,000 i n dividends at the annual rate of $2.40 per share on the common stock and four per cent on the issue price of the preferred stock, and after $1,176,000 i n profit-sharing bonus to employees, capital funds were increased from earnings f o r the year by $7,484,000 which amount was credited to undivided p r o f i t s and other reserves• President Giannini announced that on January 2, 1941, the preferred stock retirement fund w i l l be increased to $>3,473,000 by a transfer from the undivided ji. profits account and $3,000,000 of the fund w i l l then be used for purchase and tfotirement of 10 per cent of the entire outstanding issue of preferred stock. i n the period Thus of approximately six months since Bank of Americans preferred stock iTcis issued the bank vd.ll have made provision for the f i r s t four f u l l years of < retirement fund requirements. The President also pointed out that taxes of $7,767,000 paid and accrued during the year, including social security and Federal Deposit Insurance Corporation assessments, woro much greater than ever before* "Recent figures shov; California to be second among the states i n value of defense contracts received. Employment here is steadily increasing, r e t a i l trade is running at a high level, volume of building of a l l types is increasing," Giannini said. "These basic factors of business adviance are expected to expand during 1941 and spread activity into a l l other related lines. We have laid the groundwork f o r ^ > handling this great expansion of business by starting construction of our nevj 12,000,000 head office "As xic buildingt enter the Novf Year? Bonk of America again pledges i t s e l f to further the national defense program by aiding and serving a l l types of business, small and largo, through i t s 495 branches i n 307 California communities," the banker concluded.
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