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C.····~
X-35}1:).
(PreliminarY praft)
STATUS OF BRANCH BANKIFG UNDER THE LAWS OF THE SEVERAL STATES.
"JM.tes Pr.ohibi ting Branch Banking :B;y La.w:
*Alabama
*Indiana
· Colorado
Missour.i
Connecticut
New Hampshire
*Florida
*New Jersey
New. Mexico
Idaho
No SJ2AAifiS provision but branches not permitted:
Illinois
Mbntana
Iowa
Nebraska
Kansas
Navada.
Minnesota
North Dakota
States Prohibiting Branch Banks but Permitting
Branch Offices or,J£eneies:
Kentudcy'
·
Michigan
*Mississippi
Oregon
Texas
15
Utah
*Washington
*Wisconsin
Oklahoma.
South Dakota
Vermont
West Virginia
12
,)
*Pennsylvania
States Permitting Branc;lJ :Banking with no Geographical LW;itations:
1
Arizona.
Georgia
!bode Island
·
Delaware
North Carolina
. Virginia
California
South Carolina.
States fermi tting Branches within Geo&ra:ehiell LinutaU,ons:
Louisiana
Massachusetts
Ohio
Maine
New York
5
States Permitting Branches withoU,t kpress Ay.thorization of Law:
Arkansas
Maryland
Tennessee
3
\Vyoming permits branches by implication but no branches are in opera- 1
tion.
*In these states banks are parmi tted
to maintain and are operating branches
which were in existence before the
establishment of branches was
prohibited.
-r;g
.·~· : '.
.·.
1104
-2-
As given in reports from
th~
twelve Federal Reserve Agents.
BranCh banking prohibita~, except in the case of those
banks having branches in operation prior to March 2, 1911.
Six banks.are thus operating twenty branches.
Subject to the approval of the Superintendent of Banks,
a bank my establish branches, provid<3d it has not less than
$50,000 capital and surplus, plus $15,000 of additional capital
and surplus for each and e:very branch.
Seven banks are operating twenty branChes.
There are only twenty-three banks in the State with a
capital and surplus of $65,000 or over.
No specific provision in the statute&, but there are
banks operating 4 branches in ti'.e State.
3
CALIPQRNIA
Subject to the approval of the Superintendent of Banks to
be granted when "public convenience and advantage will be promoted
by such a branch", a bank may establish any number of branches in any
part of the State.
The capital requirements for brar~h offices are:
..
1- For each branch office located in the place of
principal business of the parent bank. the paid.-l:r. capital,
in cash must exceed by $25,000 the capital required for a
bank in that place.
2. For each branch office of a bank other than an exclusive trust COl'r!P8llY located 1n any place in the State other
than the plac~ of principal business of the parent bankt the
amount of the paid-in capital, in cash, of ·the parent bank
must exceed the amount required by law in the sum required
for an independent bank organized in that locality, exclusive
of the oa.pi tal required for a trust department.
3· For each branch of an exclusive trust company establiShed or maintained in a place other than the place of
principal business of the parent bank, the paid-in capital,
in cash of t'he parent bank must exceed the ::;um other·,visa required by law in the sum of $25,000·
. -.
~
.
1105
x-3530
On June 30, 1922 • there were 429 a tate banks, of which
82 were operating a total of 281 branches.
The Bank of Italy with
·banking business.
59 branches conducts a statewide
The Los .Angeles Trust & Savings Bank has 44 branches located
either within the city or in the territory economically tributary.
The California. Bank of Los Angeles has 28 branches, all
located within the city or suburbs.
The Secu.ri t-y Trust & Savings Bank of Los Angeles has
branches within the city and the near vicinity.
·
19
COLQIW)Q
:Branch banking prohibited and no branches in operation.
CONNECTICUT
Branch banking prohibited and no branches in opera.t1cm.
DELAWAB];
Branches Jlla\V be established with the consent of the State
Bank Comnissioner.
'!he applying bank must have a.t least $25,000
capital for each office or place of business then established and
for the branch to be establishe.d and a surplus of at least $25,000
for each office or place of business then established.
'lhree banks, each with two branches, have allocated
capital ·s took to each of the branches.
Two banks , one wi tb 1 branch in the same city, and one with
11 branches throughout the State have not allocated any stock to
the separate branches.
Total for the State, five banks with llfbra.nches.
FLORIDA
Branch banking prOhibited.
bank is operating two branches.
Under a previQUS statute one
GEORQIA
The establishment of branch banks is permitted subject to
the approval of the Superintendent of Banks, and with a proviso
that each branch is to have allocat.;d to it separate capital in
an amount prescribed by the Superintendent of Banks.
Eighteen banks are operating 34 branches.
ff,
-4-
X-353:>
Branch banking prohibited and no branches in operation.
IIJ.IHOIS
No provision for branch banks
~
none being
op~rated.
IND!ANA
Branch banks are prohibited by a statulie of l92:i...
Banks having branches prior thereto _and still being operated are:
~ineoln Trust Qo., Ft~ W~e.
1 branch
11
hrmers & Merchants Bank of Cltq City,
1
Union Trust Co., Ind.ianapoli&,
Fl~tCQer Savings & Trust Co., India.napiJlis
Banks with
11
l
__5. _ n
8 branches ·
.~
No provision for branch banks a.nd nona being operated.
No provision for branch banks and none being operated.
l!ra.nches are prohibited by law but recent17 one state
bank ha.s been authorized to open six agencies and one national
bank four agencies.
An7 state bank which has a capital of $50,000 or mot"e
1D81' have as many as two branches in the aame parigh (co1u1ty),
and trust companies may have as many a.s they pl~c.se. (In
towns of more than 30,000 po~)ulation the minimur.~ capital
•
requirement for any bank is $100,000.)
32 banks are operating
MAINE
77
branches.
Trust Companies are permitted to nave branches in the same
or adjoining counties.
,~'I_,.. -16 Trust Companies are at present operating {271).-~ches:
Total
branches
~-,-~·--__../
ll have l branch ;
·
"
1.1
'/t2.
4 It 3
It
,,
n
,/' 4
../
..... ..._.
1 has 4
"
/
:~1: branches
Total - i6 Trust Companies
/"/
l
.·~
110'7.
-5-
X-3530
No specific provisioc in law, but the statutes a.re
eons trued to parmi t branches.
ll banks are operating 41 branches •
.141AAQUHSjiTTS
Subject to the approval of the Board of Bank Incorporation, Trust Companies are permitted to have branches in the
same ei t:v or town as the parent bank.
At present 34 Trust
Companies are operating 51 branches:
24 have 1 branch
·
Total branches 24
7 " 2 branChes
n
n
14
2 n ~
n
_l_h&S 7
II
'l'ot;U... ~4 Trust Companies
n
n
II
lt
6
_]_
51 branches
Tne present tendency in Boston is for th~ lar~er Trust
Companies to acqUire the small banks and continue their offices
as branches • In "the rest of the State branches show a t;andency
to increase •
"IndU.Strial. n banks are permittea. to establish branches
within the limits of. the m:micipality desiana.ted in the parent
bank charter. There is no specific autbori ty for other banks to
~stablish br~hes to carey on a general banking business, but
such branches are prohibited by a xuling of the Attorney General.
Banks are permitted, however, to establish agencies in the same
ci t:v or v-illage desisnated in the charter of the parent bank.
These agencies Jl'l8.y recfive and pay out deposits and. ,9-eal. in exchange·
47 banks are operating 257 branches or agencies.
The greatest dslopment is in Detroit, where 14 banks a.r_ Jpera.ting 189 branches.
'l'wo national banks, converted from state banks, continue to operate branches, and the National Bank of Corrmerce of
Detroit has been permitted to open an additional office.
No specific provision in law, but Attorney General holds
that banks cannot establish branches without legislative authority.
Thrae national banks are
operating six branches.
JlSSISSIPPI
:,:\
'Dle law prohibits 'branch banks but parmits banks in citia&
of 10,000 or over to establish, with the permission of the ~tate
:Bank Examiner, branc::h offices within the city~ :Branch banks in operation prior to 1906 are permitted to continue.
The State :Bauk Examiner r~orts,9 banks operate 21 br~es~
(This appareJltlY has reterenee only to the branches established
prior t() 1906) •
.g'
.
.
1;108
-6MIS§OQJ.U
Branch banking J>robibited. and no branches in operation.
No sp$cific provision but two opinions of Attorney
General hold that state banks b,ave not the power to .establish
branches.. No branches in operation.
,Npi.ASKA
No proVision for branch banks and none being operated.
No provision for branch banks and none being operated..
~ranch
banking prohibited and no branches in o;pera.tion.
Brandl 1Jai:Jk1ng pr-ohibited.
Prior to 1899 branches could
be established.. In 1,913 ·an act was passed a.u:th.o.rizing branches
of Trust CO~~pmies in the same ~ty where the principal office
was l~ca.ted. 'lhts was repealed in 1915·
·
There arc at present 11 Trust Conpanies operating 18
branches and one State Bank operating l branch.
!fl\! MEXIQQ.
•
Branch bailke pi"ohibite.d, except that any mercantile
corpora.tio~ which JDa.intains a banking department in accordance
with the provisions of the laws may receive deposits and nuy
and sell e~e;e at any of its l)ranch stores.
Subject to 'tbe approval of tll.e Su.perintend.ent of :Sanks •
state banks and. trust compa;1;ie$ are permitted to have .branches
in the same city as the par:ent bank under the following cond.iti.ons:
~~ of @ta.je Bps
The bank must be in a city of n:cre than 50,000 popu.la.tion.
2. For ea.qh .branch opened since .April 27.. 1908, the actual
paid.;,. in capital ot the parent bank tmist q.ceed $100 ,OOv ,
the minimum capital r4'tqUii'ement' by $100,000' and for
each branch opened befonf April 27, 1908; and thereafter
· maintained, the actual paid-il'l capital ttllSt exceed
$100,000, the minil'llbn requirement, by $50,000 ..
l·
.,
.,
.
- 1 ..
SubJect to the approTal of tthe State Super.intendent of
D8llka, a Trust Compa.nr J1A7 establish branches iD tb.e same
c1tJ" as the parent bank, proviUcl tbat the actual. paid-in
capital of such Trust CompanJ exceeds b7 $100,000 for each
branch opened the amOu.nt otherwise required by law.
9f~ita,l tegsiremen~s:
PoPillation not exceeding 25,000
" 25,000
to 100, 000
" 100,000
to· 250.000
" 250,000 and over
§tM,e
Capital required $100,000
"
It
'
150,000
n
200,000
"
tl
:ea.np IJld Trusi Oompa.ni§s havipg :Bran9hes:
In li'aw York City:
1 has
51 branches
1
h
21
1
"
l
n
"
5QO,OOO
Total branches :
51
"
21
tt
9
S
3 have 7
3 II Q
"
"
21
2
ff
6
It
8 "
_ll.
"
9
ij.
3
2
1
tt
It
"
11
In New York State:
1 bas 18 bra.Jlchas
1 ..
7
If
l
tr
6
"
1
U
1
II
5 have
_.5,
15
Total :
u
4
8
1S
s
lS
16
..ll.
1Sl
31
.-!
II
If
3
tl
2
"
1 branch
52 banks operating 234 branches.
lS
7
6
4
3
10
_5.
53
Outside of New York Cit;r the greatest development is in Buffalo,.
where banks are opeaat~ 39 b;ancbes:
Na~ iOMl Banks l@ving .l3ran~he§:
In New York Citt:
2 have 12 branches
l has
8
"
1 If
7
II
1 If
5 "
1
II
3
If
1
"
2
"
*l.
g
11
1 branch
Total branQhes:
24
g
7
5
3
2
...-1.
50
1110
., '
X-353C'- r-
- g-
In New York State:
.Ubu.Y ... 1
*Buffalo-..l
2
~
has 1 branch ·
"
" ..l.
2
"
*Off~iees opened reeent}.t under the rulilig of the Comptroller
that Nat~onal :Banks might establish oftic~s but not branches.
NQR'l'B QAROLINA:
.A.rtt bank ~ establish. branches sUbject to the &Pl)rOVaJ. Qf
Corporation Cormniasion. The banks DllBt bave capital of $15.000 for
the home office and $20, 000 for aac:h branch in a _place of leas than
3,000 inhabitants, $30,000 for each branch in a place ba.viug from
3,000 to 10,000 inhabitants, $50,000 for each branch in a place baving
between 10,000 a.."ld 25,000 inhabitants, and $100,000 for each branch
in a. place of more than 25,000 inhabitants.
37
banks are operating
1fo provision
f~r
53
branches.
branch banks and n0111 being operated.
Subject to the consent of the· ~perintendent of ~ a
bank IJ~q establish branches in the place ot ita pri.Mipal business
and in a. citJ or village conti~OQs thereto.
.
(f.Contiguous• has not always been construed as adjacent.)
At present 44 banks a.re operating 156 branches.
Distributed b7 cities th.q are:
No. of banks
No. of
operating branches
bra.n•a
Altron
Cincinnati
Clevelan4
'l'oledo
Elsewhere in the State
~
2~
~
lS
6 (1,2,6,S,l0,49) 76
~
iJ
No provision for 'branch banks and none baing operated.
OREGON.
Branch banking prohibited but the law provides that ·
·-menever • in the future, national 'b~s are authorized to·
maintain ora.n~as in Oregon, the Superintendent of Banks
ma.Y authori~e State :Banks to _maintain branches on similar
terms.-
..
.
-9-
X-3530
PENNSYLVANIA
Certain banks operating und9r old charters have branch
banking privileges.
With those exceptions ~ranch offices ~rc
prohibited, but banks and trust companies may establish subagencies in the city or borough or township in which its principal place of business is located, providing a full report of
the operations is made to the principal place of business at
the close of the day, the assets transferred thereto, and the
liabilities reported.
This developmant is confined principally to Philadelphia,
in which city 13 state banks, trust companies, and savings banks
maintain 1 branch, 13 branches;
5 state banks, trust companies, and savings banks
maintain 2 branches,lO branches
2 state banks, trust companies, and savings banks
_
maintain 3 branches, 6 branches
Total - 20
Total branches - 29
(rt is not reported which of the above, listed as
branch<;ls 11 , ara true branches and which are offices.)
Two national banks in C~den maintain offices in
Philadelphia.
11
One national bank in Philadelphia maintains 1 branch.
RHODE
ISL~
Subject to the approval of the Board of Bank Incorporation, Trust Companies are permitted to have branCLlRS.
Seven Trust ('.bmpanies are at present operating
5 have 1 branch .
Total branches ?
n
n
2
l has 2 branches
_1_
11
10
n
ff
1
fl
17 branches:
.J,Q_
17
There ia a tendency for the larger Trust Companies to
absorb the smaller banks and to continue the offices as branches.
SCUTH CAROLINA
Any bank may establish branches.
7 banks are operating 15 branches.
SOUTH DAKOTA
No provision for branch banks and none being operated.
- 10-
X-3531"'·
TENNESSEE
Though not specifically authorized, the law is
construed to permit branch banking, and 15 banlts are
operating 29 branches.
TEXAS
Branch banking prohibited and no branches in operation.
Branch banking prohibited and no branches in operation.
No specific provision for branch banking in the Act
but branches are not penni tted.
VEOONT
::·c
VJRGINJA
Subject to the approval of State Corporation Commission, banks having capital of $25,000 or over may establish branches.
23 banks are operating 41 branches. Several national
banks have recently opened branch offices in Richmond·.
WASHINGTON
Branch banking prohibited since January, 1915· 4
banks are operating 5 branches established prior thereto ..
!fEST VIRGINIA
No provision for branch banks and none being operated.
WISCONSIN
An Act passed in 1903 prohibited branch banking except
in the case of banks operating branches before the enactment
of that law. Under this exception 7 banks are operating 9
branches.
WYOMING
Branch banking p.3rmitted by implication.
The law
provides that banks may be organizad to carry on "a general
banking, savings bank, loan and t.rust company business at
such place or places in this state as shall be designated in
their .Articles of Associa.tion." While this provision seems
to indicate that branches are penni tted, there is no other
reference in the statut~directly applicable to them, and no
branches are in operation.
@FedFRASER