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FIRST NATIONAL BANK
O F

NEVADA
HEAD OFFICE
RENO, NEVADA

January 26, 1943

Mr. A. P. Giannini
Brazilian Court
Palm Beach, Florida
Dear Mr. A. P. :
Just to be certain that your idle moments are
well occupied, I a enclosing a copy of my report which
m
was presented to the stockholders at their annual meeting.
I thought i t might contain some facts whioh would be of
interest to you.
Please destroy the copy after your perusal with no response.
Kind regardsi
Very truly yours »

W. W. Hopper
President
WWH:B
Enclosure




£

0

FIRST NATIONAL B A M OF NEVADA
Reno,
Nevada

P
Y

January 12, 1943

To the Shareholders
F i r s t N a t i o n a l Bank o f Nevada
Reno, Nevada
Gentlemen:
This i s the f o r t i e t h annual meeting o f the stockholders o f t h i s
i n s t i t u t i o n , the f i r s t meeting o f the predecessor N a t i o n a l bank being h e l d
i n January, 1904.
The i n s t i t u t i o n has made unusually s a t i s f a c t o r y progress during
the past few years and i n 1942 we had the peak, of a l l years i n d e p o s i t
growth, a gain o f $20,373,063.51, our t o t a l p r e s e n t l y represented as
|60,637,605.26.
The deposits have averaged throughout the year |49,123,537
as compared w i t h #37,193,283 f o r the year 1941. A s p l e n d i d t e s t i m o n i a l as
t o the s e r v i c e s which the F i r s t N a t i o n a l Bank o f Nevada has rendered the
people o f Nevada i s r e f l e c t e d i n the customer accounts which, as o f December
31, 1942, t o t a l e d 43,936, a g a i n o f 5,323 f o r the twelve-month p e r i o d .
There has been some change i n our l o a n p o r t f o l i o , a shrinkage of
|1,910,785.46 i n loans and discounts s i n c e January 1, 1942 being represented.
This i s the opposite o f what was r e f l e c t e d i n 1941, when we had an increase
o f |1,911,186.94 i n l o a n s . Normal business throughout the year has been more
and more r e s t r i c t e d , and many o f our customers who were not engaged i n war work
have had l e s s need to borrow from us. As a r e s u l t , our loans have shown a
constant d e c l i n e s i n c e the f i r s t o f the y e a r , both i n number and i n t o t a l
amount. R e s i d e n t i a l and other b u i l d i n g c o n s t r u c t i o n , other than i n the Las
Vegas defense area, has p r a c t i c a l l y ceased.
w i t h the p a r t i c i p a t i o j a o f the Bank o f America, N. T« & S . A . , has f i n a n c e d the r gr§attif ponETon
of a
'
j
C
o
u
n
t
y
thisj^
i s i n progress under coinmi-Sien-Es"male by the F.H.Ar~whicK~ will"not!be"eomple'ted
jmtajfjthe s p r i n g of"1943•^
instalment l o a n s ,
which wereHa. source of* c o n s i d e r a b l e earnings, decreased fl,270,931.24 d u r i n g
the year, the balance o f s a i d loans at t h i s time being §1,127,012.83.
While
we have extended s u b s t a n t i a l c r e d i t to many of our customers i n order to
f i n a n c e c o n s t r u c t i o n of defense p r o j e c t s f o r the government i n the State o f
Nevada, a t the same -time there has n o t been the demand f o r l i v e s t o c k and
a g r i c u l t u r a l c r e d i t as has p r e v a i l e d i n years p a s t .
Conversely, however,
the l i v e s t o c k men p a r t i c u l a r l y , and many o f our farmer borrowers, have not
o n l y p a i d down t h e i r loans s u b s t a n t i a l l y , i n many cases e f f e c t i n g complete
retirement, but, as w e l l , have a v a i l a b l e budget and o p e r a t i n g requirements
to carry them through 1943 without the n e c e s s i t y o f r e s o r t i n g t o bank c r e d i t .




Shareholders

2

-

January 12, 1943

Since January 1, 1942, our investment p o r t f o l i o o f United States
Government o b l i g a t i o n s has increased #14,437,345.18 which, as a matter o f
fact,
represents p r a c t i c a l l y the e n t i r e increase i n our s e c u r i t i e s , the
t o t a l o f which i s #28,870,745.02 as compared w i t h #14,319,709.87 a year ago.
State o f Nevada, other s t a t e municipals and other h o l d i n g s amount t o
#2,945,184.27. While United States Government bonds represent 40.3$ o f
our t o t a l a s s e t s , i t may be noted t h a t the average m a t u r i t y of s a i d holdings
i s seven years f i v e months, 40$ maturing w i t h i n f i v e years, 31.5$ from f i v e
to ten years, and 28.5$ over t e n y e a r s . As a matter o f comparison, our
r e p o r t of a year ago d i s c l o s e d t h a t 56.11$ o f government holdings matured
a f t e r t e n years.
I d e s i r e a l s o to c a l l a t t e n t i o n to the f a c t t h a t as t o
the United States Government bonds, the c a l l date average i s s i x years and
one month, w i t h 46.5$ c a l l a b l e w i t h i n f i v e years, 37.7$ from f i v e t o t e n
years, and 15.8$ over t e n y e a r s .
This l a t t e r f i g u r e i n the 1941 r e p o r t
was 25.22$ so t h a t t h e r e has been a very d e f i n i t e decrease i n the h o l d i n g s
maturing over t e n years.
The progress o f our Trust Department continues s a t i s f a c t o r i l y .
We have had the c o o p e r a t i o n o f the Nevada a t t o r n e y s , as a r e s u l t o f which
the w i l l s have i n c r e a s e d from 5 at the time the Trust Bepartment was establ i s h e d i n 1937 to 158 as a t the end of 1S42. S i m i l a r l y , the prospective
e x e c u t o r ' s fees have increased from $60,240, w i t h an estimated e s t a t e v&lue
of $3,000,000, to $547,374, w i t h a $27,746,000 estimated estate v a l u e .
The
record o f t r u s t accounts shows a s i m i l a r s u b s t a n t i a l increase from 14, w i t h
a t r u s t a s s e t c a r r y v a l u e o f $627,899, to 129 as o f December 31, 1942, valued
a t $15,407,000. During 1942 we had an i n c r e a s e o f 25 w i l l s and 44 t r u s t
accounts. On the earning s i d e , we have increased from a net income gain o f
$12,088.10 t o $73,140.03 f o r the twelve-month p e r i o d .
The Trust Committee of f i v e members, three o f whom are members o f
the Board o f D i r e c t o r s , has been meeting once a month to review the a c t i v i t i e s
o f the T r u s t Department. The increased a c t i v i t y w i l l now r e q u i r e a meeting
twice a month. We are g r a t i f i e d by the number o f persons who are a p p o i n t i n g
us as executor and t r u s t e e under t h e i r w i l l s and by t h e increased use of the
various other f a c i l i t i e s o f our t r u s t d i v i s i o n .
The operating earnings i n 1942 were most s a t i s f a c t o r y but d i d n o t ,
however, approach those o f 1941 which were the most outstanding of any year
i n t h e bank's h i s t o r y .
Our normal n e t p r o f i t l e s s l o s s e s , plus r e c o v e r i e s ,
was $456,014.93 f o r t h e y e a r . Of t h i s amount $223,834.06 was r e f l e c t e d i n
the June t h i r t i e t h P r o f i t and Loss statement, w h i l e $232,180.87 was the
December t h i r t y - f i r s t f i g u r e .
These f i g u r e s , however, do not i n c l u d e subs t a n t i a l reserves which were set up as a d d i t i o n a l amounts necessary to meet
our t a x requirements, the w r i t e - o f f o f our Tahoe Branch investment, and
$15,000 which was taken as a d e p r e c i a t i o n on bank b u i l d i n g s and f u r n i t u r e and
fixtures.
This i n s t i t u t i o n has made a r e a l c o n t r i b u t i o n to the war e f f o r t
through the s a l e o f Defense and War Bonds exceeding $7,500,000, i n c l u d i n g ,
as w e l l , the f i n a n c i n g o f many sub-contractors i n connection w i t h the v a r i o u s
defense p r o j e c t s throughout the S t a t e . While t h i s was our i n d i r e c t c o n t r i b u t i o n , many o f t h e bank's former employees have made a more d i r e c t c o n t r i b u t i o n
through t h e i r s e r v i c e s to the armed f o r c e s .
I take t h i s opportunity to pay



Shareholders

January 12, 1943

- 3 -

t r i b u t e to the f o r t y - f i v e s p l e n d i d young employees o f our s t a f f who have
gone f o r t h to take t h e i r places i n the A m y , Navy and A i r Force. A l l o f
these young men have been g i v e n temporary leaves o f absence to f i l l more
important p o s i t i o n s which the war has r e q u i r e d t h a t t h e y assume. We
s h a l l look forward t o t h e i r r e t u r n t o a c t i v e duty w i t h us as soon as
t h e i r work i s completed.
With our N a t i o n engaged i n the greatest of a l l c o n f l i c t s and no
one able t o measure the d u r a t i o n of t h i s war or the amount o f e f f o r t or
degree o f s a c r i f i c e t h a t w i l l be r e q u i r e d of everyone before i t i s brought
to a s u c c e s s f u l c o n c l u s i o n , t h i s i n s t i t u t i o n w i l l continue t o c o n t r i b u t e
everything i n i t s power t o the winning of the war through the u n c e r t a i n
months t h a t l i e ahead.
In everything t h a t we are doing to f u r t h e r the
war e f f o r t there i s nothing i n c o n s i s t e n t w i t h what we regard as s a f e and
sound f o r our bank.
To the o f f i c i a l s t a f f o f t h i s i n s t i t u t i o n we pay our r e s p e c t s ,
f o r t h e i r e f f o r t s have been ceaseless i n c o n s t a n t l y s u p e r v i s i n g the everchanging j u n i o r s t a f f , and to our d i r e c t o r s f o r t h e i r devotion and u n t i r i n g
z e a l f o r the continued remarkable progress o f t h i s i n s t i t u t i o n which so
s p l e n d i d l y serves e i g h t y per cent o f the people o f t h i s great S t a t e .




Respectfully

W. W. Hopper,
President

submitted,