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ANNUAL REPORT
OF THE
Fe d e r a l D e p o s it I n s u r a n c e C o r p o r a t io n
FOR THE YEAR ENDED
DECEMBER 31, 1956
LETTER
O F T R A N S M IT T A L .
F e d e r a l D e p o sit In su r a n c e C o r p o r a tio n
Washington, D. C., July 25, 1957
SIRS: Pursuant to the provisions of Section 17(a) of the Federal
Deposit Insurance Act, the Federal Deposit Insurance Corporation
is pleased to offer its annual report. Part One of the report, separately
submitted earlier in the year, is included in this volume.
Respectfully,
H. E.
T h e P r e s id e n t
T h e Sp e a k e r
of
of
the
the
H
Se n a te
ou se
of
R
e p r e s e n t a t iv e s
C ook,
Chairman
FEDERAL DEPOSIT IN S U R A N C E
IV
CORPORATION
FEDERAL DEPOSIT INSURANCE CORPORATION
N
a t io n a l
P ress B
u il d in g
— W
25, D. C,
a s h in g t o n
BOARD OF DIRECTORS
Chairman................................................................................ H . E. Cook
Comptroller of the Currency................................................... R a y
Director................................................................................... M
M. G
aple
T.
id n e y
H
arl1
OFFICIALS—July 25, 1957
Assistant to Chairman (Acting) .............................................Neil G. Greensides
Secretary..................................................................................Miss E. F. Downey
General Counsel, Legal Division............................................ Royal L. Coburn
Chief, Division of Examination.............................................Neil G. Greensides
Deputy Chief, Division of Examination................................Edward H. DeHority
Chief, Division of Liquidation...............................................A. E. Anderson
Chief, Division of Research and Statistics.............................Edison H. Cramer
Chief, Audit Division............................................................. Mark A. Heek
Controller................................................................................ William G. Loeffler
Director of Publications and Information............................. Forbes Campbell
1 Deceased April 17, 1957
V
D IS T R IC T O F F IC E S
D
is t .
No.
S u p e r v is in g
E x a m in e r
A ddress
St a t e s
in
D
is t r ic t
1. Lundie W. Barlow
Room 1365, No. 10 P.O.
Square, Boston 9, Mass.
2. Philip C. Lods
Room 1900, 14 Wall Street, New York, New Jersey,
New York 5, N. Y.
Delaware, Puerto Rico,
Virgin Islands
3. Gilbert E. Mounts
City National Bank
Ohio, Pennsylvania
Building, 20 East Broad
Street, Columbus 15, Ohio
4. Robert N. McLeod
200 The Bank of Virginia
Building, Fourth and
Grace Streets,
Richmond 19, Va.
5. John E. Freeman
Fifth floor, 114 Marietta
Georgia, Florida, Alabama,
Mississippi
St., N. W., Atlanta 3, Ga.
6. Charles M. Dunn
1059 Arcade Building,
St. Louis 1, Mo.
Kentucky, Tennessee,
Missouri, Arkansas
7. Raby L. Hopkins
715 Tenney Building,
Madison 3, Wis.
Indiana, Michigan,
Wisconsin
8. Darrell E. Wilkins
164 W. Jackson Blvd.,
Chicago 4, 111.
Illinois, Iowa
9. Charles F. Alden
1200 Minnesota Building,
St. Paul 1, Minn.
Minnesota, North Dakota,
South Dakota, Montana
10. George M. Hirning
1201 Federal Reserve Bank
Building, Kansas City 6,
Mo.
Nebraska, Kansas,
Oklahoma, Colorado,
Wyoming
11. Lloyd Thomas
Federal Reserve Bank
Building, Station K,
Dallas 13, Texas
Louisiana, Texas,
New Mexico, Arizona
12. David A. Linder
Suite 1120, 315 Mont
gomery Street, San
Francisco 4, Calif.
Idaho, Utah, Nevada,
Washington, Oregon, Cali
fornia, Alaska, Hawaii
Maine, New Hampshire,
Vermont, Massachusetts,
Rhode Island, Connecticut
District of Columbia, Mary
land, Virginia, West Vir
ginia, North Carolina,
South Carolina
FEDERAL
DEPOSIT INSURANCE CORPORATION DISTRICTS
V ll
D IST R IC T 2 Includes PUERTO RICO a VIRGIN ISLA N D S
D IST R IC T 4 Includes D ISTR ICT OF COLUMBIA
D IST R IC T 12 Includes HAWAII a A L A SK A
CONTENTS
Page
Summary.
xv
PART ONE
OPERATIONS OF THE CORPORATION
Deposit insurance coverage.....................................................................................
Supervisory activities..............................................................................................
Disbursements to protect depositors......................................................................
Finances of the Corporation...................................................................................
Legal developments.................................................................................................
Organization and personnel.....................................................................................
3
3
9
13
17
18
PART TWO
BANKING DEVELOPMENTS
Number of banks and their insurance status........................................................
Bank assets...............................................................................................................
Bank deposits...........................................................................................................
Bank capital.............................................................................................................
Income of insured banks....................................................................................
25
27
33
36
38
PART THREE
STATE DEPOSIT INSURANCE SYSTEMS, 1908-1930
Character and extent of insurance.........................................................................
Banks in financial difficulties..................................................................................
Methods used in paying depositors of banks in financial difficulty....................
Assessments on participating banks.......................................................................
Insolvency of the insurance funds........................
......................................
Disbursements to depositors and unpaid obligations of the funds......................
Inadequacies and factors responsible for failure of the State deposit insurance
systems.........................................................................................................
Detailed tables and sources of data.......................................................................
49
51
52
53
54
61
64
65
PART FOUR
LEGISLATION AND REGULATIONS
Federal legislation....................................................................................................
Rules and regulations of the Corporation..............................................................
State banking legislation.........................................................................................
77
83
84
PART FIVE
STATISTICS OF BANKS AND DEPOSIT INSURANCE
Number, offices, and deposits of operating banks................................................
Assets and liabilities of operating banks................................................................
Earnings, expenses, and dividends of insured banks............................................
Deposit insurance disbursements............................................................................
ix
88
102
114
142
LIST OF CHARTS
Organization chart of the Federal Deposit Insurance Corporation.....................
Federal Deposit Insurance Corporation districts (map)......................................
A. Location of the 431 banks requiring disbursements by the Corporation
to protect depositors, 1934-1956................................................................
B. Amount and distribution of assets, all banks in the United States (conti
nental U. S. and other areas), annually, December 31, 1947-1956. . . .
C. Amount and distribution of loans, all banks in the United States (conti
nental U. S. and other areas), annually, December 31, 1947-1956....
D. Amount and distribution of “ other loans to individuals” , insured com
mercial banks in the United States (continental U. S. and other areas),
annually, December 31, 1947-1956............................................................
E. Maturities of direct marketable obligations of the United States Govern
ment owned by operating insured commercial banks in the United
States (continental U. S. and other areas), December 31, 1946, and
December 31, 1956.....................................................................................
F. Amount and distribution of deposits, all banks in the United States
(continental U. S. and other areas), annually, December 31, 1947-1956.
G. Percentage change in total deposits and in adjusted deposits, all banks
in the United States (continental U. S. and other areas), by half-year
periods ending June 30 and December 31, 1947-1956.........................
H. Ratio of capital to total assets, insured commercial banks in the United
States (continental U. S. and other areas), December 31, 1936, 1946,
and 1956.......................................................................................................
L IS T
OF
Page
iv
vii
10
28
30
31
32
35
36
37
TABLES
PART ONE
OPERATIONS OF THE CORPORATION
S u p e r v is o r y
a c t iv it ie s :
1. Bank examination activities of the Federal Deposit Insurance Corporation
in 1955 and 1956..........................................................................................
2. Unsafe or unsound banking practices and violations of law charged against
seven banks by the Corporation during 1956........................................
3. Actions to terminate insured status of banks charged with unsafe or
unsound banking practices or violations of law or regulations, 1936-1956
4. Applications from banks acted upon by the Board of Directors of the
Federal Deposit Insurance Corporation during 1956...............................
D
4
6
7
8
is b u r s e m e n t s t o p r o t e c t d e p o s it o r s :
5. Analysis of disbursements to protect depositors, and recoveries and losses
of the Federal Deposit Insurance Corporation, 1934-1956......................
6. Protection of depositors of insured banks requiring disbursements by the
Federal Deposit Insurance Corporation, 1934-1956.............................
F in a n c e s
of the
12
C o r p o r a t io n :
7. Income and expenses of the Federal Deposit Insurance Corporation and
changes in the deposit insurance fund for the year ended December
31, 1956...................................... .................................................................
8. Administrative and operating expenses of the Federal Deposit Insurance
Corporation for the year ended December 31, 1956.............................
9. Determination and distribution of net assessment income of the Federal
Deposit Insurance Corporation for the year ended December 31, 1956.
10. Assets and liabilities of the Federal Deposit Insurance Corporation,
December 31, 1956......................................................................................
11. Insured deposits and the deposit insurance fund, 1934-1956........................
11
x
13
14
14
15
16
LIST OF TABLES
xi
Page
O r g a n iz a t io n
and perso n n el:
12. Number of officers and employees of the Federal Deposit Insurance Corpo
ration, December 31, 1956..........................................................................
13. Audit report of the Federal Deposit Insurance Corporation for the fiscal
year ended June 30, 1956...........................................................................
18
19
PART TWO
BANKING DEVELOPMENTS
N
u m b e r o f b a n k s a n d t h e ir in s u r a n c e s t a t u s :
14. Number and changes in banking offices in the United States (continental
U. S. and other areas), 1946-1956. ............................................................
15. Analysis of changes in the number of banking offices in the United States
(continental U. S. and other areas), 1947-1956...................................... ..
16. Number and deposits of all banks in the United States (continental U. S.
and other areas), December 31, 1956........................................................
B ank
26
27
assets:
17. Distribution of assets of all banks in the United States (continental U. S.
and other areas), by type and insurance status of banks, December
31, 1956........................................................................................................
Bank
25
29
d e p o s it s :
18. Deposits of all banks in the United States (continental U. S. and other
areas), by type and insurance status of banks, December 31, 1956,
and percentage changes from 1946 to 1956.............................................
19. Number of insured commercial banks in the United States (continental
U. S. and other areas) in which deposits declined between June 30,
1954, and June 30, 1956..............................................................................
20. Total deposits, adjusted deposits, and other deposits of all banks in the
United States (continental U. S. and other areas) December 31, 19471956, with annual percentage changes....................................................
Incom e
33
34
36
o f in s u r e d b a n k s :
21. Sources and disposition of total income, insured commercial banks in
the United States (continental U. S. and other areas), 1947 and 19521 9 5 6 ...........................................................................................................
22. Sources and disposition of total income, insured mutual savings banks
in the United States (continental U. S. and other areas), 1947 and
1952-1956...............................................................................................
23. Average rates of income, insured banks, 1947-1956.....................................
24. Expense ratios and interest paid on deposits, insured banks, 1947-1956...
25. Reserves for losses on loans and on securities, insured commercial banks
in the United States (continental U. S. and other areas), 1948-1956...
26. Selected operating ratios of insured commercial banks in the United
States (continental U. S. and other areas), 1947-1956...........................
21. Selected operating ratios of insured commercial banks operating throughout
the year 1956 in the United States (continental U. S. and other areas),
banks grouped according to amount of deposits......................................
38
39
40
41
42
43
44
PART THREE
STATE DEPOSIT INSURANCE SYSTEMS, 1908-1930
T
ext tables:
28. Participation of operating banks in State deposit insurance systems,
December 31, 1908-1930.......................................................................... ...............
29. Deposits in banks insured under State deposit insurance systems, December
31, 1908-1930......................................................................................... .
49
50
Xii
FEDERAL DEPOSIT INSURANCE CORPORATION
Pa.ge
30. Failed banks among participants in State deposit insurance systems,
1908-1930......................................................................................................................
31. Bank failure rates among participants in State deposit insurance systems,
1908-1930......................................................................................................................
32. Assessment rates in State deposit insurance systems, 1908-1930................
33. Insured deposits and obligations to depositors of failed banks, State deposit
insurance systems, 1908-1930................................................................................
34. Income and expenditures of State deposit insurance systems, 1908-1930..
35. Assessments relative to losses, State deposit insurance systems, 1908-1930.
D etailed tables :
36. Number of banks, and number participating in State deposit insurance
systems, 1908-1930....................................................................................................
37. Total deposits of all banks, and of banks participating in State deposit
insurance systems, 1908-1930..............................................................................
38. Participation in State deposit insurance systems, 1908-1930.........................
39. Number and deposits of failed banks participating in State deposit insurance
systems, 1908-1930....................................................................................................
40. Insured deposits and their ratio to total deposits in banks that failed while
participating in State deposit insurance systems, 1908-1930....................
41. Recoveries on insured deposits in banks that failed while participating in
State deposit insurance systems, 1908-1930.................................................
42. Losses on deposits and other liabilities in banks that failed while partici
pating in State deposit insurance systems, 1908-1930...............................
43. Assessment rates and collection by State deposit insurance systems,
1908-1934......................................................................................................................
51
52
55
61
62
63
66
67
68
69
70
71
72
73
P A R T FIVE
S T A T IS T IC S OF B A N K S AN D D EPO SIT IN SU RAN CE
N umber ,
offices, and deposits of operating b a n k s :
Explanatory note.....................................................................................................................
88
101. Changes in number and classification of operating banks and branches
in the United States (continental U. S. and other areas) during 1956. .
90
102. Number of operating banking offices in the United States (continental
U. S. and other areas), December 31, 1956
Grouped according to insurance status and class of bank, and by State
and type of office................................................................................................
92
103. Number and deposits of operating banks in the United States (continental
U. S. and other areas), December 31, 1956
Banks grouped according to insurance status and by district and State. .
100
A ssets
and liabilities of operating b an k s :
Explanatory note......................................................................................................................
102
104. Assets and liabilities of operating banks in the United States (continental
U. S. and other areas), June 30, 1956
Banks grouped according to insurance status and type of bank.............
104
105. Assets and liabilities of operating banks in the United States (continental
U. S. and other areas), December 31, 1956
Banks grouped according to insurance status and type of bank.............
106
106. Assets and liabilities of operating banks in the United States (continental
U. S. and other areas), December 31, 1956
Banks grouped by district and State................................................................
108
107. Assets and liabilities of operating insured banks in the United States
(continental U. S. and other areas), December 31, 1956, June 30, 1956,
and December 31, 1955..........................................................................................
110
LIST OF TABLES
xiii
Page
E a r n in g s ,
e x p e n s e s , a n d d iv id e n d s o f in s u r e d b a n k s :
Explanatory note.....................................................................................................
108. Earnings, expenses, and dividends of insured commercial banks in the
United States (continental U. S. and other areas), 1948-1956..............
109. Ratios of earnings, expenses, and dividends of insured commercial banks
in the United States (continental U. S. and other areas), 1948-1956. .
110. Earnings, expenses, and dividends of insured commercial banks in the
United States (continental U. S. and other areas), 1956
By class of bank.......................................................................................
111. Ratios of earnings, expenses, and dividends of insured commercial banks
in the United States (continental U. S. and other areas), 1956
By class of bank.......................................................................................
112. Earnings, expenses, and dividends of insured commercial banks operating
throughout 1956 in the United States (continental U. S. and other
areas)
Banks grouped according to amount of deposits.....................................
113. Ratios of earnings, expenses, and dividends of insured commercial banks
operating throughout 1956 in the United States (continental U. S.
and other areas)
Banks grouped according to amount of deposits.....................................
114. Earnings, expenses, and dividends of insured commercial banks in the
United States (continental U. S. and other areas), by State, 1956. . . .
115. Income, expenses, and dividends of insured mutual savings banks,
1951-1956.....................................................................................................
116. Ratios of income, expenses, and dividends of insured mutual savings
banks, 1951-1956........................................................................................
D
114
116
118
120
122
124
126
128
138
140
e p o s it in s u r a n c e d i s b u r s e m e n t s :
Explanatory note.....................................................................................................
117. Depositors, deposits, and disbursements in insured banks requiring dis
bursements by the Federal Deposit Insurance Corporation, 1934-1956
Banks grouped by class of bank, year of deposit pay-off or deposit as
sumption, amount of deposits, and State..........................................
118. Assets and liabilities of insured banks requiring disbursements by the
Federal Deposit Insurance Corporation, 1934-1956.............................
119. Insured banks requiring disbursements by the Federal Deposit Insurance
Coiporation during 1956...........................................................................
120. Recoveries and losses by the Federal Deposit Insurance Corporation on
principal disbursements for protection of depositors, 1934-1956..........
142
144
146
147
148
Su m m ar y
About 95 percent of the banks of deposit in the United States were
insured by the Federal Deposit Insurance Corporation at the end of
1956. Deposits in insured banks totaled $219 billion; an estimated $121
billion was insured under the insurance limit of $10,000 for each depositor.
(Pp. 3, 16.)
During 1956 the Corporation brought charges against seven banks
for continuing to engage in unsafe or unsound practices or violations of
law. Disbursements were made to protect depositors in two insured
banks, bringing to 431 the total number of banks whose depositors have
been so aided by the Corporation since its beginning in 1934. (Pp. 5, 9.)
The deposit insurance fund amounted to $1,742 million at the end of
1956. This was equal to 0.79 percent of total deposits of insured banks,
or 1.44 percent of insured deposits. (Pp. 13, 16.)
Assets of all banks increased $9 billion during 1956, reaching a total
of $252 billion. Deposits amounted to $229 billion, and capital accounts ex
ceeded $19 billion. (Pp. 27, 36.)
Total income of insured commercial banks rose 13 percent in 1956.
Almost two-fifths of current operating earnings remained after payment
of current expenses. Net profits after taxes were 5 percent greater than in
1955 and represented a return of 7.8 percent on total capital accounts.
The ratio of total capital accounts to total assets averaged 7.4 percent
at the year-end. (Pp. 38, 42, 43.)
A study of results of the eight State deposit insurance systems operating
between 1908 and 1930 indicates that they were less successful than the
six State insurance systems which operated between 1829 and 1866.
Each of the eight systems became insolvent, following varied degrees of
success in protecting depositors. (P. 47.)
During 1956 Federal deposit insurance was extended to Guam. The
Corporation raised to 3 percent, effective January 1, 1957, the maximum
permissible rate of interest payable on time and savings deposits.
(Pp. 17, 77, 83.)
xv
PART ONE
OPERATIONS OF THE CORPORATION
D
e p o s it
I nsurance C overage
The Federal Deposit Insurance Corporation was created by the
Banking Act of June 16, 1933, to pay depositors of failed banks the
amount of their insured deposits. By making such deposits readily
available, it has strengthened confidence in the banking system and
thereby exerted a stabilizing influence upon the economy of the nation.
Insurance was initially limited to $2,500 for each depositor. The limit
was raised to $5,000 on July 1, 1934, and continued at that amount until
September 21, 1950, when it was increased to $10,000 per depositor.
Participation o f banks in Federal deposit insurance. From the
beginning of deposit insurance most banks in the United States have been
insured. The proportion insured has increased nearly every year from
an initial 90 percent to almost 95 percent at the end of 1956, when there
were 13,441 insured banks.
In 12 States and the District of Columbia all banks of deposit were
insured on December 31, 1956. This was the same number of States
with 100 percent of the banks participating in insurance as a year earlier;
the addition of California to that category was offset by deletion of Utah
when a long dormant bank charter was reactivated and the business of
banking was resumed without deposit insurance. In 24 other States 95
percent or more of the banks of deposit participated in Federal deposit
insurance. Only in four States, all in New England, was the proportion
less than three-fourths, and this was due chiefly to the fact that relatively
few of the considerable number of mutual savings banks in those States
have applied for Federal deposit insurance.
Deposits o f insured banks. At the end of 1956 insured banks held
deposits of over $219 billion. An estimated 55 percent of these deposits,
or approximately $121 billion, were insured. However, approximately 98
percent of all accounts had balances of less than $10,000 and were there
fore fully protected.
S u p e r v is o r y A c t iv it ie s
Bank examinations. As an insurer of deposits the Corporation has
a substantial interest in the sound operation of banks participating in
Federal deposit insurance. Accordingly, the Corporation regularly
examines insured banks not members of the Federal Reserve System
and reviews reports of examinations of national banks and State banks
members of the Federal Reserve System.
3
4
FEDERAL DEPOSIT INSURANCE CORPORATION
It is the policy of the Corporation to make an annual examination of
each insured bank not a member of the Federal Reserve System. More
frequent examinations are made when special problems or unusual
conditions exist; and under special circumstances the Corporation
examines an insured bank normally examined by another Federal super
visory agency. Examinations of trust departments and branches are
conducted separately, and the results consolidated with the report of
examination of the bank. In addition, the Corporation investigates
such matters as proposed new banks and branches, and conducts formal
follow-up conferences where difficulties are encountered. As indicated
in Table 1, during 1956 the Corporation conducted a total of 10,227
examinations and investigations.
T a b le 1.
F ederal D
Bank E
e p o s it
x a m in a t io n
A
c t iv it ie s
I n s u r a n c e C o r p o r a t io n
in
op
1955
the
and
1956
N umber
A ctivity
E x a m in a tion s a n d in v estig a tion s— t o t a l ........................................................
10,227
10,226
E x a m in a tio n s o f m a in o ffic e s .........................................................................
Regular examinations of insured banks not members of Federal Reserve
System................................................................................................................
Re-examinations; or other than regular examinations...................................
Entrance examinations o f operating noninsured banks.................................
6,935
6,896
6,699
15 U
82
6,686
222
88
E x a m in a tion s o f d e p a rtm e n ts a n d b r a n c h e s ...........................................
Examinations of trust departments...................................................................
Examinations of branches...................................................................................
2,503
8U2
1,661
2,422
810
1,612
I n v e s tig a tio n s ........................................................................................................
New bank investigations:
Banks members of Federal Reserve System..................................................
Banks not members of Federal Reserve System...........................................
New branch investigations...................................................................................
Miscellaneous investigations...............................................................................
789
908
51
117
198
U28
58
176
176
U98
R eview o f re p o rts o f e x a m in a tio n o f in su red ban k s— t o t a l ...............
National banks.....................................................................................................
State banks members of Federal Reserve S ystem ......................................
State banks not members of Federal Reserve System ...............................
13,422
5,019
1,692
6,711
13,520
4,862
1,901
6,757
The information on the condition of banks provided through examina
tions forms the basis of most of the Corporation’s decisions with respect
to individual banks. Through examination the Corporation seeks to
determine the net worth or sound capital of a bank and the degree of
protection thus afforded depositors or other creditors; the quality of
the bank’s assets; the existence of practices likely to lead to financial
difficulties; and whether there are any indications of violations of law.
A report of examination covers many specific items. The condition of
the loan portfolio usually provides the most occasion for comment. In
SUPERVISORY ACTIVITIES
5
general, Corporation examiners are instructed to classify for further
attention the following types of loans: those involving undue risk; those
representing an over-extension of credit or undue concentration in a
single line of credit; those not adequately supported by credit information
on the borrower; and loans which do not conform to statutory provisions.
Banks are urged to take their losses currently and to make regular
provision for losses which may develop.
Because of the importance of securities in a bank’s asset structure,
the Corporation urges the adoption by each bank of a carefully formulated
investment program. An effort is made by examiners to determine the
suitability of the individual bank’s securities portfolio to its own needs
from the standpoint of both liquidity and quality. Banks are encouraged
to limit their commitments to high grade bonds of short to medium term
maturity, and to give due consideration to diversification, marketability,
and income.
The adequacy of capital, which is the depositors’ first line of protection,
is always of major concern. The examiner also scrutinizes the effectiveness
of internal controls, the use of sound accounting procedures, and the
adequacy of fidelity bonds. Finally, the quality of the bank’s management
is carefully appraised.
All reports of examination are reviewed in the Washington office and
an analysis made of each bank. For each examination which exhibits
an unusual insurance risk a detailed memorandum is prepared analyzing
the bank’s weaknesses. Through constant scrutiny and follow-up of
such banks, unfavorable developments are corrected in most cases before
they reach serious proportions.
Citations for unsafe and unsound banking practices and
violations of law. When examination of a bank reveals unsafe or un
sound banking practices or a violation of law or regulations, the Corpo
ration has the authority and duty under Section 8(a) of the Federal
Deposit Insurance Act to institute proceedings for the involuntary
termination of the insured status of such bank. Proceedings are initiated
only after a diligent effort has been made to obtain satisfactory corrective
action by the bank itself.
At the start of 1956 formal proceedings were pending against nine
banks; during the year proceedings were initiated against seven addi
tional banks. Unsafe practices and violations of law cited against the
seven banks included self-serving or hazardous management, operating
with an impairment of capital, and holding excessive amounts of sub
standard assets. Specific charges against the banks are presented in
more detail in Table 2.
6
FEDERAL DEPOSIT INSURANCE CORPORATION
T a b le 2.
Law
U nsafe
C harged A
or
g a in s t
U n s o u n d B a n k in g P r a c t ic e s
Seven B an ks
by
th e
and
V
io l a t io n s
C o r p o r a t io n D
u r in g
Type of practice or violation
of
1956
Number
of banks
charged
C a p ita l:
Impaired capital or surplus.............................................................................................................
Inadequate capital or surplus.........................................................................................................
L o a n s a n d in v e s tm e n ts :
Concentration of bank’ s funds in non-conforming lines of credit in an amount ex
ceeding the bank’s capital structure.........................................................................................
Continued carrying of a large amount of overdue loans.........................................................
Excessive volume of loans in relation to total assets...............................................................
Further extension of credit to borrowers whose lines of credit have been previously
adversely classified........................................................................................................................
Large amount of adversely classified assets...............................................................................
Lax credit, lending, and collection policies.................................................................................
Loans and advances to builders made without adequate collateral security or credit
inform ation.....................................................................................................................................
M a n a gem en t:
Abuse of bank’ s credit facilities b y bank’s president...............................................................
Creation of shortages in the assets of the b a n k ........................................................................
Dissipation of the bank’ s funds in worthless overdrafts.........................................................
Failure of Board of Directors to direct and supervise lending and collection p o licie s..
Failure to com ply with corrective recommendations of supervisory authorities and
their respective examiners...........................................................................................................
Failure to maintain adequate credit files and supporting instruments on loans...........
Unauthorized disposition of collateral without application of proceeds to lo a n ...........
Use of bank’ s credit facilities by officers and directors or b y principal stockholders for
their personal benefit or for enterprises in which they have a substantial financial
interest.............................................................................................................................................
W eak, self-serving and hazardous management.......... .............................................................
V io la tio n s o f la w :
Change of location of main office of bank without consent of the Corporation...............
Diversion to own use b y bank’s officers of earnings and commissions due bank as a
result of construction loans.........................................................................................................
Failure to maintain legally required reserves.............................................................................
Illegal loans.........................................................................................................................................
Violation of other specific State laws...........................................................................................
After a bank is cited under Section 8(a) it is allowed a further period
of time as prescribed by statute to make the required corrections. If at
the end of such period, or possible extension of such period, the necessary
corrections have not been made, a hearing is held at which time the bank
is afforded an opportunity to show cause why its insured status should
not be terminated. No such hearings were held during 1956.
Of the 16 cases active in 1956, 9 were dismissed during the year when
the banks involved made the required corrections. One case was closed
when the bank concerned was absorbed by another bank. Six cases were
still pending at the end of 1956. The disposition or status of all Section
8(a) cases in 1956 and during the Corporation's existence is shown in
Table 3.
Admission to insured status. Banks that become members of the
Federal Reserve System are insured without application to the Corpo
ration. National banks located outside the 48 States and the District
of Columbia which are not members of the Federal Reserve System may
become insured upon application by the bank and certification by the
7
SUPERVISORY ACTIVITIES
Table 3.
w it h
A
c t io n s
U nsafe
to
or
of
T
e r m in a t e
I n su re d Sta tu s
U n s o u n d B a n k in g P r a c t ic e s
Law
or
R
e g u l a t io n s ,
of
or
B
anks
V
C harged
io l a t io n s
1936-1956
Disposition or status
1936-19561
T o t a l b a n k s a g a in s t w h ic h a c t io n was t a k e n .........................
177
C ases c l o s e d ...........................................................................................
Corrections m ade................................................................................
Banks absorbed or succeeded b y other banks.............................
With financial aid of the Corporation..........................................
Without financial aid o f the Corporation....................................
Banks suspended prior to setting date of termination of
insured status by Corporation....................................................
Insured status terminated, or date for such termination set
by Corporation, for failure to make corrections.....................
Banks suspended prior to or on date of termination of insured
status..............................................................................................
Banks continued in operation*......................................................
171
59
68
Pending
Jan. 1,
1956
Started
during
1956
62
32
12
C ases n o t closed D e c e m b e r 31, 1956............................................
Correction period not expired.........................................................
Action deferred pending analysis of examination.......................
1 N o action to terminate the insured status of any bank was taken before 1936. In 5 cases where
initial action was replaced by action based upon additional charges, only the latter action is included.
8 One of these suspended 4 months after its insured status was terminated.
Comptroller of the Currency. Other banks of deposit may apply to the
Board of Directors of the Corporation for admission to insurance. In
the case of a new State nonmember bank, the Board acts upon an appli
cation for admission to insurance only after the bank has obtained a
charter, or a commitment for one, from the appropriate State banking
authority.
During 1956 the Board acted upon 136 applications for admission
to insurance; 72 were from new banks and 64 from operating banks. All
but 15 of the applications were approved.
Of the 58 new banks approved for admission to insurance, there were
10 each in Illinois and Texas, with the remainder scattered among 21
States. Forty-six of the 63 operating banks admitted to insurance were
in Kansas.
Other applications from banks. In addition to the applications
for admission to insurance, the Board of Directors in 1956 acted upon
451 other applications from banks. These included petitions to operate
branches, change the location of banking offices, retire capital, and
engage in other types of business. The various types of applications
acted upon by the Board in 1956, and its decisions, are presented in
Table 4.
Reports from banks. All insured banks were required to submit
statements of their assets and liabilities as of June 30 and December 31,
8
FEDERAL DEPOSIT INSURANCE CORPORATION
T a b le 4.
of
A p p l ic a t io n s
the
from
F ederal D
B anks A
e p o s it
cted
U pon
by
B
the
I n s u r a n c e C o r p o r a t io n D
T ype of application
Total
acted
upon
oard
u r in g
of
A pproved
A ll a p p lica tio n s* ...................................................................................
Admission to insurance— tota l.............................................................
New banka.............................................................................................
Operating banks....................................................................................
587
136
72
6U
D
ir e c t o r s
19561
556
121
58
68
D is
approved
31
15
U
1
Continuation of insurance of banks withdrawing from F R S . . . .
15
14
1
Change in type of business— to ta l......................................................
To engage in trust business................................................................
To engage in commercial banking.....................................................
34
88
1
32
81
1
2
2
Assumption of deposit liabilities— tota l............................................
Of another insured bank......................................................................
O f a noninsured bank..........................................................................
Of a financial institution not a bank................................................
26
1U
6
6
26
1U
6
6
Operation of branches— tota l. . . ; .......................................................
New branch offices................................................................................
New facilities........................................................................................
Conversion of absorbed bank or financial institution.....................
Continue operating existing branches...............................................
181
1U9
8
22
7
176
11*6
8
22
5
Change of location of offices— to ta l....................................................
Main offices...........................................................................................
Branches...............................................................................................
146
1U
82
144
112
82
Retirement of capital— to ta l................................................................
Held by R F C ........................................................................................
Held by others....................... ...............................................................
41
1
w
40
1
89
Other capital adjustments....................................................................
3
3
Service of persons convicted of breach of trust...............................
5
5
8
2
2
2
1
1
5
1
Excludes applications from banks for financial assistance under Section 13 of the Federal Deposit
Insurance A ct.
*
Tabulations are on the basis of final action taken by the Board of Directors. Excludes six actions
taken during prior years which were either confirmed or rescinded during 1956.
1956, and statements of their earnings, expenses, and dividends for the
calendar year 1956. As required by law, national banks and all banks in
the District of Columbia submitted the reports to the Comptroller of
the Currency; State banks belonging to the Federal Reserve System
sent their reports to the respective Federal Reserve banks; all other
insured banks made their reports to the Federal Deposit Insurance
Corporation. Each of the Federal agencies tabulates and summarizes
the data reported to it and makes the results available to the other
agencies.
Supplementing the reports from insured banks, the Corporation, by
inter-agency agreement, gathers and prepares statistics of assets and
liabilities of noninsured banks and trust companies, and provides the
only tabulation covering assets and liabilities of all operating banks.
Reports relating to noninsured banks as of June 30 and December 31,
1956, were obtained through the assistance of State banking authorities
and of officials of unincorporated banks or other banking institutions
not under supervision of Federal or State banking authorities.
SUPERVISORY ACTIVITIES
9
The data on assets and liabilities, and on earnings and expenses of
banks, are discussed in Part Two of this report, and shown in the statis
tical tables of Part Five. Tabulations of the reports of assets and liabilities
of all banks and of insured banks classified by State and class of bank
are published by the Corporation in separate reports.
D
is b u r s e m e n t s
to
P rotect D
e p o s it o r s
Disbursements in 1956. During 1956 disbursements were made by
the Corporation to protect depositors in two insured banks. In both
cases financial irregularities were responsible for the difficulties.
One of the banks, the River Oaks State Bank, Fort Worth, Texas,
was involved in a check kiting operation. It was placed in receivership
by the State banking authority, and the Corporation paid the bank’s
depositors up to the insurance limit of $10,000. Additional recoveries
by those depositors having balances greater than $10,000 depend upon
the results of liquidation of the assets taken over by the Corporation
in its separate capacity as receiver.
The other bank was The Home National Bank of Ellenville, Ellenville,
New York, which was also closed because of a large shortage. As required
by law, the Comptroller of the Currency appointed the Corporation as
receiver. Instead of paying the insured deposits directly, however, as is
usually the procedure in a receivership, the Corporation assisted a newly
organized national bank in assuming the total deposits of the closed
bank. This assistance by the Corporation took the form of a loan to the
receivership which, with the acceptable assets of the closed bank, equalled
the amount of the liabilities assumed by the new bank.
These two banks requiring assistance in 1956 had a combined total
of over 15,000 depositors with deposits totaling almost $12 million.
Disbursements by the Corporation in these cases amounted to over
$3 million as of December 31, 1956. It is expected that a substantial
part of this amount will eventually be recovered from the proceeds of
liquidation of the assets of the two banks.
Disbursements, 1934-1956. During the 23 years of Federal deposit
insurance ending December 31, 1956, the Corporation made disburse
ments to protect depositors of 431 banks. The location of the banks
involved in these cases is shown in Chart A.
The 431 banks together had more than 1.4 million deposit accounts
and $583 million of deposits. Deposits were paid up to the insurance
maximum in 250 cases; deposit assumptions were arranged in the re
maining 181 cases.
10
FEDERAL DEPOSIT INSURANCE CORPORATION
C h art A .
L o c a tio n
by th e
o f t h e 431 B a n k s R e q u i r i n g D i s b u r s e m e n t s
C o r p o r a t io n t o
P r o t e c t D e p o s i t o r s , 1 9 3 4 -1 9 5 6
In fulfilling its responsibility to depositors in these cases, the Corpo
ration had disbursed or provided for disbursements of $340.1 million
by the end of 1956. Except for certain liquidation costs absorbed by
the Corporation, amounting to $1.1 million, these disbursements are
subject to recovery from the proceeds of liquidation, insofar as may be
possible. The different types of disbursements and related data concerning
recoveries and losses by the Corporation are presented in Table 5.
In payoff cases the depositors who are paid by the Corporation assign
to it equivalent claims against the receiver of the bank. These entitle
the Corporation to receiver’s dividends on a parity with similar claims.
From liquidation of assets acquired in deposit assumption cases the
Corporation is entitled first to recover its liquidation expenses and
advances made to protect the value of assets awaiting liquidation.
Further proceeds are next applied to recovery of the principal disburse
ment. From any further proceeds the Corporation retains an amount
equal to interest or a return on investment of 4 percent on the amounts
advanced.
At the end of 1956 the Corporation had recovered $305.7 million.
Expected additional recoveries of $4.4 million, if realized, will reduce
losses on total disbursements to $30.0 million. Allowing further for
interest collected on loans and allowable return received on purchased
assets, together amounting to $9.0 million, the Corporation’s net loss
of funds through 1956 is estimated at $20.9 million.
11
DISBURSEMENTS TO PROTECT DEPOSITORS
Table 5.
and
A n a l y s is
L o sses
of
of
th e
D
is b u r s e m e n t s t o
Federal D
e p o s it
P rotect D
e p o s it o r s , a n d
Insurance C
o r p o r a t io n ,
R
e c o v e r ie s
1934-1956
(In thousands)
Principal
Item
All
dis
bursements
Total
principal
dis
bursements
Loans and
assets
purchased1
Insured
deposits
paid3
D is b u r s e m e n ts ..................................
T o December 31, 1956:
Potentially recoverable *.............
N ot recoverable............................
Estimated additional:
Potentially recoverable8.............
N ot recoverable............................
$340,051
$292,238
$197,769
$94,469
338,524
1,099
291,918
197,769
94,149
320
108
320
R e c o v e r ie s ............................................
T o December 31, 1956...................
Estimated additional6.....................
310,100
305,683
4,417
263,494
259,077
4,417
184,399
182,547
1,852
79,095
76,530
2,565
D e p o s it in s u ra n c e lo s s e s ................
On recoverable disbursem ents.. . .
On nonrecoverable disbursements.
29,951
28,744
1,207
28.744
28.744
13.370
13.370
15.374
15.374
In te re s t a n d a llo w a b le re tu r n
c o l l e c t e d ...........................................
9,005
9,005
8,658
347
20,946
19,739
4,712
15,027
N e t loss o f f u n d s ...............................
Advances
and
expenses
$47,813
46,606*
1,099*
320
108
46.606
46.606
1.207
.........1,207
1.207
1 In 181 deposit assumption cases.
2 In 250 deposit payoff cases.
* A potentially recoverable disbursement is a disbursement for which the Corporation acquires
a claim against a receiver or liquidator.
* This item comprises $32,490 thousand advances for asset protection and $14,116 thousand liqui
dation expenses.
* Includes $941 thousand field payoff expenses, and $158 thousand other nonrecoverable expenses.
8 This figure excludes transactions to facilitate termination o f liquidations o f closed banks, and
for this reason differs from the balance shown for “ Assets acquired in receivership and deposit assumption
transactions," in Table 10.
Transactions to facilitate termination o f liquidations. Aside
from the above disbursements, the Corporation has purchased at public
sale the last assets remaining in several bank liquidations in order to
facilitate their termination. For such assets the Corporation paid $1.6
million and, as outright owner, is entitled to all proceeds on them. Profits
and income on these transactions, which amount to $0.6 million, are a
partial offset to the deposit insurance losses noted above.
Losses of depositors. Of the two cases arising in 1956, depositors
of one of the banks, The Home National Bank of Ellenville, experienced
no loss. Their deposits were transferred to and made available at the
newly established and insured Ellenville National Bank.
Deposit claims of about nine-tenths of the depositors of the River
Oaks State Bank were paid or made available in full by the Corporation.
Most of the remaining depositors did not suffer any loss because their
claims were offset in full against their indebtedness to the bank. A
relatively few depositors had balances in excess of the insurance maximum.
They received $10,000 each in the deposit payoff, and on their excess
12
FEDERAL DEPOSIT INSURANCE CORPORATION
deposits will participate with the Corporation and other creditors in
dividends from the liquidation.
Losses to depositors of insured banks since establishment of the
Corporation have amounted to 0.5 percent of their deposits; and only
0.3 percent of the depositors have experienced any loss. All depositors
of the 181 banks whose deposits were assumed by another insured bank
were fully protected. In the 250 banks where payoffs occurred, 97.4
percent of deposits have been paid or made available; and full recovery
has been received or made available to 99.1 percent of the depositors.
The sources of these payments and their respective amounts are shown
in Table 6.
T a b le 6.
D
is b u r s e m e n t s
P r o t e c t io n
by
the
of
D
F ederal
e p o s it o r s
D
e p o s it
of
Insured B an ks R
I nsurance
Deposit payoff
cases
(250 banks)
All cases
(431 banka)
Item
Number or
amount
Percent
N u m b e r o f d e p o sito rs o r a c
c o u n t s — t o t a l1........................
1,425,735
Full recovery received or available
1,421,974
e q u ir in g
C o r p o r a t io n ,
1934-1956
Deposit
assumption cases
(181 banks)
Number or
amount
Number or
amount
Percent
100.0%
396,258
100.0%
1,029,477
100.0%
99.7
392,497
99.1
1,029,477
100.0
1,381,931
34,558
96.9
2.4
352,4512
34,558
89.0
8.7
1,029,477
100.0
2.742
2.743
0.2
0.2
Full recovery not received as of
D ec. 31, 1956...............................
3,761
0.3
3,761
0.9
Terminated cases.........................
Active cases...................................
2,771
990
0.2
0.1
2,771
990
0.7
0.2
A m o u n t o f d e p o sits
(in th o u s a n d s )— t o t a l .............
$583,192
100.0%
Paid or made available..................
580,070
99.5
F D I C .......................................
offset7.......................................
security or preference8.........
receiver9..................................
556,721
7,035
6,541
9,773
95.5
1.2
1.1
1.7
N ot paid or available as of Dec.
81, 1956..........................................
3,122
Terminated cases.........................
Active cases...................................
1,777
1,345
From F D I C ..................................
B y offset3.........., ...........................
Through security or
preference4.................................
From receiver5........................
By
By
By
By
2,742
2,743
$120,795
Percent
0.7
0.7
100.0%
$462,397
97.4
462.397
100.0
94,324*
7,035
6,541
9,773
78.1
5.8
5.4
8.1
462.397
100.0
0.5
3,122
2.6
0.3
0.2
1,777
1,345
1.5
1.1
117,673
100.0%
1 Number of depositors in deposit payoff cases; number of accounts in deposit assumption cases.
* Includes 55,262 depositors who failed to claim their insured deposits.
* Includes only depositors with claims offset in full; most of these would have been fully protected
b y insurance in the absence of offsets.
4 Includes only depositors whose total balances were more than the insurance maximum.
5 The insured portions of these depositors’ claims were paid by the Corporation.
5 Includes $175 thousand insured deposits, available but unclaimed from Corporation (see note 2 ).
7 Includes all amounts paid b y offset.
8 Includes all secured and preferred claims paid by receiver; excludes secured and preferred claims
paid by Corporation.
9 Includes unclaimed deposits paid into trusts by receivers.
13
FINANCES OF THE CORPORATION
F in a n c e s
of
the
C o r p o r a t io n
Sources o f incom e. Regular assessments upon insured banks are
the primary source of income of the Corporation. The statutory assess
ment rate is one-twelfth of 1 percent annually of total deposits less
certain authorized exclusions and deductions. Against current assessments
the banks are allowed a credit amounting to 60 percent of net assessment
income for the prior year; i.e., assessment income remaining after deduc
tion of the Corporation’s insurance losses and operating expenses. The
remaining 40 percent of net assessment income is retained by the Corpora
tion, along with other funds received, and invested principally in United
States Government securities. Interest on these obligations constitutes
an important secondary source of income. The Corporation also receives
some incidental income from assets acquired from closed insured banks.
T a b le 7.
In com e an d E x p e n se s o f th e
C o r p o r a t io n
fo r
in c o m e
a n d C h a n g e s in t h e
th e
and
F e d e r a l D e p o s it In s u ra n c e
D e p o s it In s u ra n c e
Fund
Y e a r E n d e d D e c e m b e r 31, 1956
expen ses
N e t in c o m e fo r th e yea r e n d ed D e c e m b e r 31, 1956:
Incom e:
Deposit insurance assessments................................................
Less net assessment income credit due insured banks
(see table 9 ) ............................................. ...................................
$155,382,810
87,310,642
68,072,168
43,673,817
75,434
N et income from U. S. Government securities.................... ..
Other in com e...................................................................................
$
T otal incom e...................................................................
Expenses and losses:
Administrative and operating expenses (see table 8 ) -----. . .
Provision for reserves for insurance losses...............................
Other insurance losses and expenses..........................................
$
111,821,419
9,066,942
1,221,144
13,320
Total expenses and losses............................................
10,301,406
N et in c o m e (a d d itio n to th e d e p o sit in su ra n c e fu n d )
f o r th e year en d e d D e c e m b e r 31, 1956...........................
$
101,520,013
D E P O S IT IN SU R A N C E FU N D
$1,639,588,832
D e p o s it in s u ra n c e f u n d , D e c e m b e r 31, 1955............................
Adjustments applicable to periods prior to January 1, 1956
(increasing the fund):
B y reduction of reserves for insurance losses (net):
Applicable to net assessment incom e....................................
N ot applicable to net assessment incom e............................
436,333
1,631
$
B y additional assessments (n e t ).................................................
437,964
530,240
Total adjustments....................................................... ..
968,204
D e p o s it in s u ra n c e fu n d , D e c e m b e r 31, 1955 as a d ju s t e d ..
$1,640,557,036
N et income for the year ended December 31, 1956 (see above)—
addition to the fu n d ..................................................................
101,520,013
D e p o s it in s u ra n c e f u n d , D e c e m b e r 31, 19561...........................
$1,742,077,049
1 See footnote 2, Table 10.
14
FEDERAL DEPOSIT INSURANCE CORPORATION
Income and expenses in 1956. Net income of the Corporation was
$101.5 million in 1956. Total income for the year, amounting to $111.8
million, consisted of $68.1 million of insurance assessments retained by
the Corporation, $43.6 million of net income from investments in United
States Government securities, and $0.1 million of other income. Income
and expenses of the Corporation in 1956 are shown in Table 7.
Expenses and losses of the Corporation totaled $10.3 million in 1956.
Administrative and operating expenses, classified by major items in
Table 8, amounted to $9.1 million. Reserves provided for insurance
losses and expenses amounted to $1.2 million.
Table 8.
A
d m in is t r a t iv e
an d
I n s u r a n c e C o r p o r a t io n
O p e r a t in g E
for
the
Y
xpenses
ear
E
of
D
nded
Federal D
the
e p o s it
31, 1956
ecem ber
Personal services........................................................
T ra vel...........................................................................
Transportation of things.........................................
Communication services..........................................
Rents and utilities.....................................................
Printing and reproduction......................................
Supplies and materials.............................................
Equipm ent..................................................................
Other contractual services.......................................
$6,474,061
1,645,188
14,180
78,902
422,541
75,694
42,624
74,417
246,269
T o t a l ...................................................
Less: Recoverable expenses and other credits. . ,
$9,073,876
6,934
N et a d m in istr a tiv e a n d o p e ra tin g expen ses
$9,066,942
Table 9.
of
D
e t e r m in a t io n
the
F ederal D
Y
ear
and
D
e p o s it
E
nded
is t r ib u t io n
of
N
et
A ssessm en t I ncom e
I n s u r a n c e C o r p o r a t io n
D
ecem ber
for
the
31, 1956
D e te r m in a tio n o f n e t a ssessm en t in c o m e :
Total assessments which became due during the calendar
yea r................................................................................................
Less:
Administrative and operating expenses....................................
N et additions to reserves to provide for insurance losses:
Provided in 1956........................................................................
Adjustments to provisions for reserves made prior to
1956 (reduction).....................................................................
$155,382,810
$
9,066,942
$ 1,221,144
436,333
784,811
Other insurance losses and expenses..........................................
13,320
Total deductions............................................................
$
N et assessment income for 1956.....................................................
9,865,073
$145,517,737
D is tr ib u tio n o f n e t a ssessm en t in c o m e , D e c e m b e r 31,
1956:
N et assessment income for 1956: <
40 percent transferred to deposit insurance fun d...................
Balance credited to insured banks.............................................
$ 58,207,095
87,310,642
T o ta l.................................................................................
$145,517,737
A llo c a t io n o f n e t a ss ess m en t in c o m e c r e d it a m o n g i n
s u red b a n k s, D e c e m b e r 31, 1956:
Credit for 1956.....................................................................................
Adjustment of credits for prior years....................................
$87,310,642
27,401
Percent of total
assessments be
coming due in 1956
56.19%
.02
T o ta l.................................................................................
$87,338,043
56.21%
15
FINANCES OF THE CORPORATION
Assessments due the Corporation in 1956 totaled $155.4 million.
Net assessment income for the year was $145.5 million. Forty percent
of this amount, or $58.2 million, was retained by the Corporation. The
balance, amounting to $87.3 million, was credited and allocated among
insured banks in proportion to their assessments which became due in
1956, and becomes available to them on July 1, 1957, for use in paying
current deposit insurance assessments. The current credit is equal to
56.21 percent of the 1956 assessment of each insured bank, approximately
the same percentage as in each year since the credit was first provided in
1950. A statement showing the determination and distribution of net
assessment income in 1956 is presented in Table 9.
T a b le 10.
A sse ts an d L ia b ilitie s o f t h e
F e d e r a l D e p o s it In s u ra n c e
C o r p o r a t io n , D e c e m b e r 31, 1956
ASSETS
C ash............................................................................................................
U . S. Government obligations:
Securities at amortized cost (face value $1,830,000,000;
market or redemption value $1,757,519,391)..........................
Accrued interest receivable..............................................................
Assets acquired in receivership and deposit assumption trans
actions:
Subrogated claims of depositors against closed banks..........
N et insured balances of depositors in closed banks, to be
subrogated when paid— con tra...............................................
Loans to insured banks.................................................................
Loan to receiver for closed bank................................................
Assets purchased under agreements to return any excess
recovery to selling banks..........................................................
Other purchased assets..................................................................
Less reserves for losses..................................................................
4,221,686
$1,825,165,990
6,071,880
1,831,237,870
3,442,589
320,466
2,085,169
463,022
6,739,213
13,456
13,063,915
8,638,669
4,425,246
Deferred charges and sundry assets...............................................
Furniture, fixtures, and equipm ent................................................
124,145
T o ta l a ss e ts ...............................................................
$1,840,008,948
1
L IA B IL IT IE S 1
Accounts payable and miscellaneous accrued liabilities...........
Earnest m oney, escrow funds, and collections held for others.
Accrued annual leave of em ployees...............................................
Due insured banks:
N et assessment income credits available July 1, 1957.........
O ther..................................................................................................
494,924
189,534
1,043,586
87,338,043
8,432,733
95,770,776
Deferred credits...................................................................................
N et insured balances of depositors in closed banks— contra. .
Reserve for deposit insurance expenses.........................................
T o t a l lia b ilit ie s .......................................................
4,891
320,466
107,722
$
97,931,899
D E P O SIT IN SU R A N C E FU N D
F u n d (see table 7)*............................................................................
1,742,077,049
T o t a l lia b ilitie s a n d f u n d ...................................
$1,840,008,948
1 Capital stock was retired by payments to the United States Treasury in 1947 and 1948, pursuant
to the Acts of August 5, 1947, (61 Stat. 773) and June 29, 1948, (62 Stat. 1092).
8 The Deposit Insurance Fund represents the cumulative net income (surplus) of the Corporation
from its inception to December 31, 1956. For the protection of depositors, in addition to this Fund, the
Corporation is authorized to borrow up to three billion dollars from the United States Treasury when
In the judgment of the Board of Directors such funds are required for insurance purposes.
16
FEDERAL DEPOSIT INSURANCE CORPORATION
Assets and liabilities, December 31, 1956. The assets of the Corpo
ration on December 31, 1956, totaled $1,840 million. Of this amount,
$1,831 million was represented by holdings of United States Government
securities, including accrued interest thereon. Assets held which had been
acquired in deposit payoff and deposit assumption cases were valued at
$4 million, after provision for losses. Cash held at the year-end amounted
to $4 million.
Liabilities totaled $98 million on December 31, 1956. Nearly all of
this amount represented net assessment income credits due insured
banks. The excess of the Corporation’s assets over its liabilities, amount
ing at the end of 1956 to $1,742 million, constitutes the deposit insurance
fund. Assets and liabilities of the Corporation on December 31, 1956,
are given in Table 10.
The insurance fund and insured deposits. The ratio of the deposit
insurance fund to deposits has increased slightly in the last few years.
At the end of 1956 the fund amounted to 0.79 percent of deposits in
insured banks. The relationship of the insurance fund to deposits in
insured banks and to estimated insured deposits for each year-end date
since 1934 is shown in Table 11.
Table 11.
I nsured
D
e p o s it s
Year
(D ec. 31)
and
the
D
Deposits in
insured banks
(in millions)
Total
e p o s it
Insurance
Percent
of
deposits
insured
Insured1
55.2%
54.8
54.6
1956..............................................
1955................................ ..............
1954...............................................
$219,393
212,226
203,195
$121,008
116,380
110,973
1953..............................................
1952...............................................
1951...............................................
1950...............................................
1949..................... .........................
193,466
188,142
178,540
167,818
156,786
105,610
101,842
96,713
91,359
76,589
54.6
54.1
54.2
54.4
48.8
1 94 8 ...................... .......................
1947................... ...........................
1946..............................................
1945.................................... . . . .
1944...............................................
153,454
154,096
148,458
158,174
134,662
75,320
76,254
73,759
67,021
56,398
1943........................................ ..
1942............................................ .
1941...............................................
1 9 4 0 . . . . ................. .....................
1939...............................................
111,650
89,869
71,209
65,288
57,485
1938...............................................
1937...............................................
1936...............................................
1935...............................................
1 9 3 4 .. .................... .....................
50,791
48,228
50,281
45,125
40,060
Deposit
insurance
fund
(in
millions)
$1,742.1
1,639.6
1,542.7
F
und,
1934-1956
Ratio of deposit
insurance fund to—
Total
deposits
Insured
deposits
.79%
.77
.76
1.44%
1.41
1.39
1,450.7
1,363.5
1,282.2
1,243.9
1,203.9
.75
.72
.72
.74
.77
1.37
1.34
1.33
1.36
1.57
49.1
49.5
49.7
42.4
41.9
1,065.9
1,006.1
1,058.5
929.2
804.3
.69
.65
.71
.59
.60
1.42
1.32
1.44
1.39
1.43
48,440
32,837
28,249
26,638
24,650
43.4
36.5
39.7
40.8
42.9
703.1
616.9
553.5
496.0
452.7
.63
.69
.78
.76
.79
1.45
1.88
1.96
1.86
1.84
23,121
22,557
22,330
20,158
18,075
45.5
46.8
44.4
44.7
45.1
420.5
383.1
343.4
306.0
333.0
.83
.79
.68
.68
.83
1.82
1.70
1.54
1.52
1.84
1 Estimated b y applying to the deposits in the various types of account at the regular call dates the
percentages insured as determined from special reports secured from insured banks.
FINANCES OF THE CORPORATION
17
Audit. As required by the Federal Deposit Insurance Act, the Comp
troller General of the United States makes an annual audit of the Corpo
ration. The short form of the audit report for the year ended June 30,
1956, as furnished to the Corporation by the Comptroller General, is
given in Table 13, on pages 19-21.
L egal D
evelopm ents
Federal legislation. The Federal Deposit Insurance Act was amended
by Section 3 of Public Law 896, 84th Congress, approved August 1, 1956,
to extend Federal deposit insurance to Guam. The National Bank Act
and all other acts of Congress relating to national banks were also made
applicable to Guam by Section 2 of Public Law 896.
The Bank Holding Company Act of 1956, to define bank holding
companies, control their future expansion, and require divestment of
their nonbank interests, was approved May 9, 1956 (Public Law 511,
84th Congress).
These enactments are given in Part Four of this report.
Rules and regulations o f the Corporation. A proposed amendment
of Section 329.6 of the Corporation’s rules and regulations, which relates
to the maximum rates of interest payable on time and savings deposits
by insured nonmember banks, to permit compounding of interest monthly,
instead of quarterly, at maximum permissible rates was published in the
Federal Register of February 25, 1956 (21 F.R. 1275), but was not
adopted.
Section 329.6 of the Corporation’s rules and regulations was amended
effective January 1, 1957 (21 F.R. 9693, Dec. 7, 1956). This amendment
changed the maximum permissible rate of interest payable on time and
savings deposits of 23^ percent in paragraph (a) of Section 329.6 to 3
percent, and the maximum permissible rate of 2 percent in paragraph
(b) of Section 329.6 to 23^ percent. No change was made in the maximum
permissible rate of 1 percent in paragraph (c) of Section 329.6. The
amendment also eliminates provisions as to maximum rates payable
under deposit contracts entered into before specified dates in 1936,
since with the passage of time these provisions have become obsolete
and of no significance. The amended Section 329.6 is given in Part Four
of this report.
State legislation. A summary of State banking legislation enacted
in 1956 is given in Part Four of this report.
18
FEDERAL DEPOSIT INSURANCE CORPORATION
O r g a n iz a t io n
and
Personnel
Directors and employees. The management of the Federal Deposit
Insurance Corporation is vested in a three-member Board of Directors.
There were no changes in the membership of the Board during 1956.1
The directors and other Corporation officials are listed on page v, and
an organization chart of the Corporation is shown on page iv. Names of
the Corporation’s supervising examiners and locations of the district
offices are given on pages vi and vii.
The Corporation had 1,144 employees on December 31, 1956, an
increase of 13 over the previous year-end. About three-fourths of the
Corporation’s personnel are employed in the Division of Examination.
A distribution of the Corporation’s employees according to Division
and location is presented in Table 12.
T a b le 12.
N u m b e r o f O f f i c e r s a n d E m p lo y e e s o f t h e
F e d e r a l D e p o s it I n s u r a n c e
C o r p o r a t i o n , D e c e m b e r 3 1, 1950
Division
Washington
office
Total
Total....................................................................................................
1.144
289
Directors.................................. .......................................................
Executive Offices...........................................................................
Legal D ivision.............................. ................................................
Division of Exam ination...................... ......................................
Division of Liquidation...............................................................
Division of Research and Statistics.........................................
Audit Division................................................... .......................
Office of the Controller................................................................
3
16
24
818
60
41
59
123
s
1$
24
|
46
18
41
18
District
and other
field offices
855
772
42
41
128
During the last 10 years employment has ranged from a low of 1,002
to a high of 1,160. Turnover in 1956 amounted to 17 employees per 100,
exclusive of temporary personnel engaged in field liquidation activities.
Competing employment opportunities have made it difficult to attract
and retain examiner personnel; at the end of 1956 there were 57 vacancies
in the authorized field examiner staff.
Employee benefits and programs. Benefits available to Corporation
employees include vacation and sick leave, retirement annuities, life
insurance, and medical benefits. At the end of 1956, 98 percent of the
Corporation’s employees were included in the United States Civil Service
Retirement System; the remaining 2 percent were covered under the
retirement provisions of the Social Security Act. Also on that date, 96
percent of the eligible employees had availed themselves of the group
life insurance benefits provided under the Federal Employees’ Group
i M r. Maple T . Harl, who had been a director of the Corporation since January 5, 1946, died on
April 17, 1957.
19
ORGANIZATION AND PERSONNEL
Life Insurance Act of 1954. Employees are eligible for benefits in case of
disabling injuries under terms of the Federal Employees' Compensation
Act, and for unemployment benefits under terms of legislation extending
such benefits to Federal employees on January 1, 1955.
Since 1952 the Corporation has provided hospitalization, surgical
benefits and in-hospital medical benefits for its employees. The Corpo
ration bears the cost of this program for its employees, who may indi
vidually extend it to cover dependents by paying the additional cost. The
Corporation provides facilities for an employees’ credit union, which is
particularly helpful to examiners, who are prohibited by law from bor
rowing from insured banks.
The Corporation encourages examiners and auditors to participate
in a somewhat formalized educational program. At the end of 1956
about half of the examiners were enrolled in courses of study whose costs
are paid by the Corporation. During the eleven years the program has
been in operation, over 2,000 formal courses of study have been com
pleted by examiners. The program consists principally of correspondence
courses given by the American Institute of Banking and special graduate
courses in banking at three universities. In addition, Corporation ex
aminers participate in the Inter-Agency Bank Examination School
sponsored by the Federal bank supervisory agencies and conducted by
the Board of Governors of the Federal Reserve System. Further educa
tional purposes are served by the District conferences of Corporation
examiners; these are held every other year, and are a valued medium
for instruction and appraisal.
Table 13.
A
u d it
C o r p o r a t io n
R
for
eport
the
of
the
F is c a l Y
C om ptroller G en eral
W
of
F ederal D
e p o s it
E
June
ear
the
a s h in g t o n
B -11483
nded
Insurance
30, 1956
U n it e d St a t e s
25
December 14, 1956
Board of Directors
Federal Deposit Insurance Corporation
Gentlemen:
The General Accounting Office has made an audit of F e d e r a l D e p o s i t I n s u r a n c e
C o r p o r a t i o n , an independent Government agency, for the fiscal year ended June 30,
1956, in accordance with section 17(b) of the Federal Deposit Insurance Act (12
U.S.C. 1827).
This audit included an examination of the balance sheet of Federal Deposit In
surance Corporation as of June 30, 1956, and the related statement of income and
deposit insurance fund for the year then ended. The examination was made in ac
cordance with generally accepted auditing standards and included such tests of the
accounting records and such other auditing procedures as were considered necessary
in the circumstances and appropriate in view of the effectiveness of the system of
internal control, including the work performed by the Corporation's internal auditors.
20
FEDERAL DEPOSIT INSURANCE CORPORATION
Table 13.
C o r p o r a t io n
A
u d it
for
R
the
eport
of
F is c a l Y
Federal D
the
ear
E
nded
e p o s it
Insurance
J u n e 3 0 , 1 9 5 6 — Continued
In the opinion of the General Accounting Office, the accompanying balance sheet
(exhibit 1) and statement of income and deposit insurance fund (exhibit 2) present
fairly the financial position of Federal Deposit Insurance Corporation at June 30>
1956, and the results of its operations for the year then ended, in conformity with
generally accepted accounting principles applied on a basis consistent with that of
the preceding year and with applicable Federal laws.
Sincerely yours,
/ s / J oseph C a m pb e ll
Comptroller General of the United States
Exhibit 1.
F ederal D
e p o s it
I n s u r a n c e C o r p o r a t io n ,
B a l a n c e Sh e e t , J u n e 30, 1956
ASSETS
$
U . S. G o v e r n m e n t o b lig a tio n s :
Securities, at amortized cost (face value, $1,815,200,000;
market or redemption value, $1,778,666,328)........................
Accrued interest receivable..............................................................
$1,810,140,116
6,707,097
A ssets a cq u ire d in d e p o sit a ss u m p tio n a n d receiversh ip
tr a n s a c tio n s :
Subrogated claims of depositors against closed insured banks.
N et balances of depositors in closed insured banks, to be
subrogated when paid— contra...................................................
Loans to insured banks.....................................................................
Equity in assets acquired under purchase agreements.............
Assets purchased outright.................................................................
18,971
2,233,479
7,745,212
13,415
Less estimate for losses......................................................................
11,277,003
8,346,249
2,562,146
1,816,847,213
1,265,926
2,930,754
122,098
A c c o u n ts receiv a b le, d eferred ch a r g e s , a n d s u n d ry a ssets.
F u r n itu re , fixtu res, a n d e q u ip m e n t, less accumulated
depreciation of $602,460...............................................................
1
$1,822,462,212
L IA B IL IT IE S A N D D E P O SIT IN SU R A N C E FU N D
A c c o u n ts p a ya b le a n d a ccr u e d lia b ilitie s .................................
$
552,758
E arnest m o n e y , escrow fu n d s , a n d co lle c t io n s h e ld fo r
o t h e r s ...............................................................................................
164,230
E m p lo y e e s' a ccr u e d a n n u a l le a v e .................................................
1,101,734
D eferred c r e d it s ....................................................................................
8,446
N et b a la n ces o f d e p o sito rs in clo s e d in s u red b a n k s— contra
18,971
N et a ssessm en t in c o m e cr e d its d u e in s u red b a n k s (note 1):
Available July 1, 1956.......................................................................
Estimated amount available July 1, 1957, from net assess
ment income for 6 months ended June 30, 1956....................
$
85,409,716
44,387,963
Total liabilities...............................................................
D e p o sit in su ra n c e fu n d , representing accumulated income
from inception to June 30,1956, available for future deposit
insurance losses and related expenses (note 2 and exhibit 2 ).
129,797,679
131,643,818
1,690,818,394
$1,822,462,212
The notes following exhibit 2 are mn Integral part of this statement.
21
AUDIT OF THE CORPORATION
T a b le 13.
C o r p o r a t io n
E x h ib it 2 .
and D
A
u d it
for
F ederal D
e p o s it
R
th e
eport
of
F is c a l Y
e p o s it
I nsurance F
th e
ear
Federal D
I nsurance C
und
for
the
e p o s it
I nsurance
E n d e d J u n e 3 0 , 1 9 5 6 — C o n t in u e d
o r p o r a t io n ,
F is c a l Y
ear
Sta te m e n t o f
E
nded
I ncom e
J u n e 30, 1956
Deposit insurance assessments............................................................
$
155,141,790
Deduct net assessment Income credits due insured banks (note 1)
87,741,613
Incom e from U . S. Government securities.......................................
41,517,468
67,400,177
Other incom e............................................................................................
33,578
108,951,223
Deduct:
Administrative and operating expenses:
Salaries..............................................................................................
T ra vel................................................................................................
Rents and utilities..........................................................................
Other..................................................................................................
$6,273,334
1,607,925
421,416
570,691
Nonrecoverable deposit insurance expenses.................................
8,873,366
103,593
8,976,959
99,974,264
Add reduction in estimate for deposit insurance losses on ac
quired banking assets:
Reduction in loss estimate on prior year cases...........................
Loss estimate on case acquired during the year.........................
448,232
144,769
N et income for year transferred to deposit insurance fu n d.........
303,463
100,277,727
Deposit insurance fund, June 30, 1955.............................................
1,590,540,667
Deposit insurance fund, June 30, 1956 (note 2 and exhibit 1 ) . . .
$1,690,818,394
The notes on the following pages are an integral part of this statement.
N
otes
to
the
F in a n c ia l St a t e m e n t s — J u n e 30, 1956
1. Section 7(d) of the Federal Deposit Insurance A ct (12 U .S .C . 1817(d) ) provides that, as of
December 81, 1950, and as of December 31 of each year thereafter, the Corporation shall credit pro
rata to the insured banks 60 percent of the net assessment income (as defined by the act) for the calendar
year, the credit to be applied toward the payment of assessments becoming due for the semiannual
period beginning the next July 1 and any excess credit to be applied to the assessment of the following
period.
A t June 30, 1956, the net amount due the banks for credits computed on the net assessment
income for calendar year 1955 and on adjustments of such income for prior years was $85,409,716. The
actual amount of credit due the banks from calendar year 1956 net assessment Income is not determinable
until after December 31, 1956. However, an estimated credit for the first 6 months of 1956 has been
computed to be $44,387,963.
2. A t June 30, 1956, the deposit insurance fund of $1,690,818,394 was equivalent to 1.48 percent
of the insured deposits in all banks, estimated b y the Corporation at 114.6 billion dollars. This fund,
however, is not a measure of the deposit insurance risk, and its adequacy to meet future losses will
depend on future economic conditions which cannot be predicted. From its inception to June 30, 1956,
the Corporation disbursed about $338,000,000 In protecting depositors of 429 insured banks and fa
cilitating the termination of liquidations, on which incurred losses amount to $28,083,613, including
estimated losses of $8,346,249 on cases not terminated.
Existing law does not specify either the amount or the ratio of insured deposits to which the
insurance fund is to be accumulated.
The Corporation may borrow from the United States Treasury, at interest, such funds as in the
judgment of the board of directors of the Corporation are required from time to time for insurance
urposes, not exceeding, in the aggregate, three billion dollars outstanding at any time. The Corporation
as never used this borrowing power.
8. In accordance with the law, the Corporation has not borne the Government's share of the cost
of providing retirement, disability, and compensation (including unemployment) benefits for the em
ployees of the Corporation. These costs are estimated to be approximately $285,000 for the fiscal year
1956.
4 . The securities owned by the Corporation at June 30, 1956, with a face value of $1,815,200,000,
were held In safekeeping b y the Treasurer of the United States ($1,157,700,000) and b y the Federal
Reserve Bank of New York ($657,500,000). The cash balance ($2,562,146) of the Corporation at that
data included $2,353,439 deposited with the Treasurer of the United States.
E
PART TWO
BANKING DEVELOPMENTS
N
um ber of
Banks
and
T
Insur ance Status
h e ir
Changes in number of operating banks and branches. At the
end of 1956 there were 22,314 banking offices in the United States. The
number of banks has decreased annually since 1947, but the opening of
additional branches has resulted each year in an increase in the number
of banking offices. Table 14 shows the number of banks and branches
at the end of each year, and the changes occurring annually, from 1946
to 1956.
Table 14. N u m b e r a n d C h a n g e s
U n i t e d S t a t e s ( C o n t i n e n t a l U . S.
Number at end of year
or period
Year
or
period
Total
banking
offices
Banks
in
and
B a n k in g O f f ic e s
O t h e r A r e a s ),
Change in number
Total
Branches1 banking
offices
Banks
in
th e
1946-1956
Percentage change
Total
B ranches1 banking
offices
1946-1956..
22,314
14,208
8,106
3,335
-551
3,886
1956
1955........
1954 . .
1953........
1 9 5 2 ....
1951........
1950
1949
1948
1947
1946 , .
22,314
21,675
21,160
20,779
20,450
20,155
19,851
19,600
19,366
19,175
18,979
14,208
14,284
14,409
14,552
14,617
14,661
14,693
14,736
14,753
14,767
14,759
8,106
7,391
6,751
6,227
5,833
5,494
5,158
4,864
4,613
4,408
4,220
639
515
381
329
295
304
251
234
191
196
-7 6
-125
-143
-6 5
—44
-32
-43
-1 7
-14
8
715
640
524
394
339
336
294
251
205
188
17.6%
2.9
2.4
1.8
1.6
1.5
1.5
1.3
1.2
1.0
1.0
Banks
-3 .7 %
- .5
-.9
-1 .0
- .4
-.3
-.2
-.3
-.1
-.1
.1
B ranches1
92.1%
9.7
9.5
8.4
6.8
6.2
6.5
6.0
5.4
4.7
4.5
1 Includes “ facilities’ * at military installations.
In recent years the relative number of banks and branches has been
altered by an increased number of deposit assumption transactions
and of new branches opened. On December 31, 1946, there were 1,194
banks operating branches, with a total of 4,220 branches; ten years
later the numbers had risen to 2,060 banks and 8,106 branches. During
the 10-year period 90 percent of the banks which ceased operations
were absorbed by other banks, and more than four-fifths of that group
were converted into branches. Of the new banking offices opened during
the period 79 percent were branches. The number of branches opened
increased in each of the ten years. The number of absorptions in 1956,
while smaller than in 1955 and 1954, was more than twice as great as
that for any of the years 1947 through 1951. However, because of new
banks opened the total number of banks decreased less than 4 percent
during the ten years. The changes which occurred in the numbers of
banks and branches each year from 1947 through 1956 are analyzed in
Table 15.
25
26
FEDERAL DEPOSIT INSURANCE CORPORATION
Table 15.
the
A n a l y s is
U n it e d St a t e s
C h a n g e s in t h e N u m b e r o f B a n k in g O f f ic e s in
( C o n t i n e n t a l U . S. a n d O t h e r A r e a s ) , 1947-1956
of
Banks
All
banking
of
Year fices—
net
N et
in
change
crease
1956
1955
1954
1953
1952
1951
1950
1949
1948
1947
639
515
381
329
295
804
251
234
191
196
-7 6
-125
-143
-6 5
-4 4
-3 2
-4 3
-1 7
-1 4
8
Branches
Ceased
operations
Other
addi
tions
to
(+ )
Began
or de
opera
letions
tions1
A b
Liqui
from
s o rb e d 2 dated*
<-)
count—
net4
119
116
72
65
69
63
69
72
78
113
189
231
207
115
99
78
89
76
77
82
9
10
9
12
16
18
15
20
15
15
+3
+1
-3
+2
+ 1
—8
+ 7
-8
Opened for
business
Net
in
crease
715
640
524
394
339
336
294
251
205
188
Other
addi
tions
Dis
to ( + )
con
or de
Suc
tinued— letions
ceeded
Other
total*
from
ab
new
( -)
sorbed b ra n ch es5
count—
banks
net4
168
206
181
97
84
59
73
61
59
55
582
483
378
323
278
298
231
195
162
165
89
60
87
29
21
24
22
8
20
31
+4
•f-1
+2
+3
-2
+3
+12
+3
+4
-1
i M ostly new banks, but Includes a few previously operating financial institutions which became
banks of deposit.
a N et decrease as a consequence of absorptions, consolidations, and mergers.
* Suspensions and voluntary liquidations. Also includes in each year from one to four cases of banks,
the deposits of which were assumed with F D IC aid.
* Includes revisions in classification and changes occurring in prior years, but on which no informa
tion was available until given year.
» In each year includes: from one to seven cases of branches replacing banks relocated or placed in
liquidation or receivership; and from one to thirty-nine facilities established in or near military in
stallations at the request of the Treasury or Commanding Officer of the installation.
* In each year (except 1949, 1951, and 1952) includes from one to ten facilities discontinued at
military installations.
Detailed data: Table 101, Annual Reports of the Federai Deposit Insurance Corporation, 1947*1956.
From 1946 to 1956 the population of the continental United States
rose by 19 percent, and the number of banking offices increased by 17
percent. There was an increase in population in each of the States, but
the number of banking offices declined in three States. In 22 States the
number of banking offices increased by a greater percentage than did
the population.
Types o f operating banks and their insurance status. Almost 96
percent of banks operating in the United States at the end of 1956 were
classified as commercial banks, approximately 4 percent were mutual
savings banks, while trust companies not regularly engaged in deposit
banking constituted less than one-half of 1 percent. The proportion of
the banks in each category is virtually the same as that existing ten
years ago. In Table 16 all banks in the United States are classified by
type and insurance status.
The proportion of all banks which participate in insurance provided
by the Federal Deposit Insurance Corporation has continued to increase
gradually. At the close of 1956 the participating institutions comprised
97 percent of commercial banks and 42 percent of mutual savings banks.
Ten years earlier the percentages were 94 and 35, respectively. Trust
27
NUMBER OF BANKS AND THEIR INSURANCE STATUS
companies which are not regularly engaged in deposit banking are not
eligible for deposit insurance.
Table 16.
Sta te s
N u m b e r a n d D e p o s it s o f A l l B a n k s in t h e U n it e d
( C o n t i n e n t a l U . S . a n d O t h e r A r e a s ) , D e c e m b e r 31, 1956
Number or deposits
Insured
banks
Total
N u m b e r o f b a n k s— t o t a l ............................
Banks of deposit...........................................
Commercial.................................................
Mutual savings...........................................
Trust companies not regularly engaged
in deposit banking....................................
14,208
14,148
18,620
528
D ep osits (in m illio n s )— t o t a l ....................
Banks of deposit...........................................
Commercial.................................................
Mutual savings...........................................
Trust companies not regularly engaged
in deposit banking1..................................
$228,579
228,506
198,m
80,032
Percentage of total
N on
insured
banks
13.441
13.441
13,218
228
767
707
U02
305
$219,393
219,393
196,507
22,886
$9,186
9,113
1,967
7,1*6
60
Insured
banks
94.6%
95.0
97.0
U2.2
60
73
N on
insured
banks
5.4%
5.0
5.0
57.8
100.0
96.0
96.0
99.0
76.2
73
4.0
4.0
1.0
23.8
100.0
1 Deposits of these companies consist of uninvested trust funds and special accounts.
Detailed data: See Table 103, pp. 100-101.
B a n k A ssets
Growth o f assets in 1956 and prior years. During the year 1956
the assets of all banks increased by $9 billion, reaching a total of $252
billion. The increase, which amounted to 3.6 percent, was slightly smaller
than that in 1955. At the close of 1956 the assets of all banks were 49
percent greater than they had been ten years earlier.
The assets of commercial banks rose by 3.2 percent in 1956, com
pared with an increase of 3.9 percent in the year previous. During 1956
the assets of mutual savings banks continued to grow more rapidly than
those of commercial banks. Assets of mutual savings banks increased
6.5 percent in 1956 and 6.8 percent in 1955. In the 10-year period ending
December 31, 1956, the assets of commercial banks increased 45 percent,
while the assets of mutual savings banks increased 78 percent. At the
close of 1956 commercial banks held 86 percent of the assets of all banks.
Com position o f total assets. During the ten years from the end of
1946 to the close of 1956 important changes took place in the composition
of total bank assets. The banks’ holdings of United States Government
obligations were reduced by nearly one-fourth. At the same time, the
banks responded to the needs of the expanding economy by a three-fold
increase in their loans. Chart B shows the percentages of total assets
in the form of United States Government obligations and in loans, and
also in cash and due from banks and in other assets, at the close of each
year during the period.
28
FEDERAL DEPOSIT INSURANCE CORPORATION
C h a rt B .
A m o u n t a n d D is t r ib u t io n o f A s s e t s , A l l B a n k s
U n it e d S t a t e s (C o n t in e n t a l U . S. a n d O t h e r A r e a s ) ,
A n n u a l l y , D e c e m b e r 31, 1947-1956
1947
1948
1949
1950
U.S. GOVERNMENT OBLIGATIONS
I LOANS AND DISCOUNTS
1951
1953
1954
1955
in
th e
1956
CASH AND FUNDS OUE FROM BANKS
OTHER ASSETS
The distribution of the assets of all banks in the United States on
December 31, 1956, is shown in Table 17. On that date 27 percent of
the assets of commercial banks consisted of United States Government
obligations and 42 percent were loans. For mutual savings banks the
proportions were 24 percent and 59 percent, respectively. For both
29
BANK ASSETS
groups of banks these percentages represent a marked change from ten
years previously, when United States Government obligations were 55
percent and loans were 18 percent of total assets in commercial banks,
while for mutual savings banks the percentages were 63 and 24,
respectively.
Table 17.
D is t r ib u t io n o f A ss e t s o f A l l B a n k s in t h e U n it e d S t a t e s
(C o n t in e n t a l U . S. a n d O t h e r A r e a s ), b y T y p e a n d
I n s u r a n c e S t a t u s o f B a n k s , D e c e m b e r 31, 1956
(Amounts in millions)
Commercial banks
Assets
All
banks
Insured
Mutual savings banks
N on
insured
Insured
N on
insured
T o t a l a s s e t s ...........................................
Cash and funds due from banks. . .
Securities..............................................
U. S. Government obligations. . . .
Obligations o f States and sub
divisions ........................................
Other securities................................
$251,965
49,837
87,352
66,795
$216,145
48,444
73,947
57,958
$2,509
472
1,242
867
$25,282
739
8,628
5,518
$8,028
182
3,535
2,U53
IS ,687
6,920
12,716
3,273
251
12 U
562
2,5U8
107
975
Loans and discounts, n et.................
Valuation reserves...............................
Loans and discounts, gross..............
Commercial and industrial............
Agricultural {excluding real estate)
For carrying securities...................
Real estate.........................................
Other loans to individuals..............
All other loans..................................
110,632
1,785
112,417
38,965
U,181
U,322
U2,U6U
19,116
3,368
90,143
1,562
91,705
38,707
k-,116
4.,236
22,U8U
18,829
3,333
712
U
716
216
6J,
65
235
112
2U
15,542
19U
15,736
38
2
17
15,568
103
8
4,236
25
4,261
U
Fixed and miscellaneous assets. . . .
4,144
3,611
84
373
76
Number of banks, D ec. 31, 1956. . . .
14,208
13,218
462
223
305
3
U,177
73
3
Detailed data; See Table 105, pp. 106-107.
Note: Due to rounding differences, components may not add precisely to the indicated totals.
Types of loans. During each of the ten years, 1947 through 1956,
loans increased both in amount and as a percentage of the total assets
of all banks in the United States. At the same time, as is shown by
Chart C, there was considerable fluctuation in the percentages of total
loans represented by each of the major types of loans. Two categories
of loans, commercial and industrial and those on real estate, each ac
counted for approximately one-third of the total volume of loans out
standing at the end of each year. However, real estate loans were the
largest category of loans in each of the last four years, while commercial
and industrial loans exceeded the other categories in most of the earlier
years. The volume of loans in the category “ other loans to individuals”
increased during the period, and at the end of 1956 was approximately
one-half that of the commercial and industrial loans.
Chart D shows the relative volume of the various types of “ other
loans to individuals” which insured commercial banks had outstanding
30
FEDERAL DEPOSIT INSURANCE CORPORATION
Chart C.
A m o u n t a n d D is t r ib u t io n o f L o a n s , A l l B a n k s in
U n i t e d S t a t e s ( C o n t i n e n t a l U . S. a n d O t h e r A r e a s ) ,
A n n u a l l y , D e c e m b e r 31, 1947-1956
AMOUNT
the
BILLIONS OF DOLLARS
---------------------------125
(including valuation reserves)
DISTRIBUTION IN PERCENT
°” ^ 4 r _ T 94P _T 9 4 P ^ 9 5 r ^ 9 5 r
1952
1953
REAL ESTATE
FOR CARRYING SECURITIES
COMMERCIAL AND INDUSTRIAL
fS S L .)
1954
1955
Mo t h e r
EEDALL
1958 °
l o a n s t o in d iv id u a l s
OTHER LOANS
at the close of each of the past ten years. The total volume of such loans
outstanding increased in each year, but this was not true for every
category of loans. Consequently, there were fluctuations in the per
centages of total loans represented by each of the various classes. Ap
proximately one-third of the total “ other loans to individuals” now
31
BANK ASSETS
C h a r t D.
A m o u n t a n d D is t r ib u t io n o f “ O t h e r L o a n s t o I n d iv id u a l s ” ,
I n s u r e d C o m m e r c i a l B a n k s i n t h e U n i t e d S t a t e s ( C o n t i n e n t a l U . S. a n d
O t h e r A r e a s ) , A n n u a l l y , D e c e m b e r 31, 1947-1956
1955
1956
i 1'!!!!. 1 OTHER RETAIL
RE1___
|f------------INSTALMENT
i
REPAIR AND MODERNIZATION INSTALMENT
consists of retail automobile instalment loans, more than double the
proportion represented by this category on December 31, 1946. Single
payment loans, on the other hand, declined from more than 60 percent
of “ other loans to individuals” at the close of 1946 to 30 percent ten
years later.
32
FEDERAL DEPOSIT INSURANCE CORPORATION
Obligations of the United States Government, and of States
and subdivisions. In the investment portfolios of banks, that portion
of the United States Government obligations which will mature in less
than five years has increased greatly in recent years. The change which
occurred from the end of 1946 to the close of 1956 in the maturity distri
bution of the marketable United States Government obligations held
by insured commercial banks is shown by Chart E. There was also a
movement toward shorter maturities for the marketable United States
Government obligations owned by insured mutual savings banks. How
ever, at the end of 1956, almost two-thirds of these securities held by
mutual savings banks had maturities of between 10 and 20 years.
C h a rt E .
M a t u r it ie s o f D ir e c t M a r k e t a b l e O b l ig a t io n s o f t h e
U n it e d St a t e s G o v e r n m e n t O w n e d b y O p e r a t in g I n s u r e d C o m m e r c ia l
B a n k s in t h e U n it e d S t a t e s (C o n t in e n t a l U . S. a n d O t h e r A r e a s ),
D e c e m b e r 31, 1946, a n d D e c e m b e r 31, 1956
The amount of the obligations of States and their subdivisions held
by all banks at the close of 1956 was three times as great as that ten
years earlier. On December 31, 1956, 5.4 percent of the assets of all
banks consisted of obligations of States and their subdivisions. Of these
obligations owned by insured commercial banks on June 30, 1956, 50
percent had maturities of five years or less, compared with 46 percent
nine years earlier. On June 30, 1956, 79 percent of the obligations of
States and subdivisions owned by insured commercial banks consisted
of general obligation bonds and long-term Public Housing Authority
obligations, 15 percent were revenue bonds, and 6 percent were notes
and warrants without specific maturity.
33
BANK DEPOSITS
Bank D
e p o s it s
Deposit growth in 1956 and prior years. At the end of 1956 total
deposits in all banks were 46 percent greater than they had been ten
years earlier. The rate of increase of 3.2 percent in 1956 was lower than
for either 1955 or 1954.
As is shown by Table 18, great differences exist in the rates at which
total deposits in various classes of banks have changed since 1946. At
the close of 1956, 87 percent of total deposits were in commercial banks.
However, during the preceeding ten years, the deposits in mutual savings
banks increased 78 percent while those in commercial banks grew 42
percent. In the ten years ending December 31, 1956, deposits in banks
participating in insurance provided by the Federal Deposit Insurance
Corporation increased more rapidly than deposits in banks not having
this insurance. This is largely explained by changes in the number of
insured and noninsured banks. From December 31, 1946, to the end of
1956 the number of insured commercial banks declined 1 percent; at
T a b le 18.
D e p o s it s o f A l l B a n k s in t h e U n it e d S t a t e s (C o n t in e n t a l U . S .
a n d O t h e r A r e a s ), B y T y p e a n d I n s u r a n c e S t a t u s o f B a n k s , D e c e m b e r 3 1 , 1 9 5 6 ,
a n d P e r c e n t a g e C h a n g e s F r o m 1946 to 1956
Mutual savings banks
Commercial banks
Deposits or
percentage change
All
banks
A m o u n t (in m illio n s ):
$228,579
T o t a l d e p o s it s ...........
Business and personal:
115,292
Dem and1
Time and savings
78,510
States and subdivisions
13,005
United States Govern
4,130
ment ...........................
Interbank2.....................
17,643
Total demand deposits. 1U5,79U
Total time deposits. . . .
82,785
P ercen tag e ch a n g e D ec.
31, 1946, to D ec. 31,
1956
T o t a l d e p o s it s ...............
Business and personal:
D em and.....................
Time and savings
States and subdivisions
United States Govern
ment .......................
Interbank*................
Num ber of banks:
December 31, 1956. . . .
December 31, 1 9 4 6 .. ..
N on
insured
N on
insured
Total
Insured
$2,040
$30,032
$22,886
$7,146
1,033
412
219
24
29,985
18
22
22,843
16
2
7,141
2
4,071
17,320
1U,38A
52,122
56
321
1,381
660
4
80,003
3
2
26
22,859
7,U S
78.0%
100.3%
31.3%
Total
Insured
$198,547
$196,507
115,268
48,525
12,988
114,235
48,113
12,768
4,126
17,641
11*5,765
52,782
45.8%
41.9%
43.4%
-2 8 .5 %
37.8
56.1
88.6
37.8
45.1
88.4
38.9
46.9
92.5
-2 6 .0
-3 8.6
-1 5.8
30.6
38.5
30.5
38.5
33.6
40.5
-5 0.9
- 22.1
14,208
14,759
13,680
14,218
13,218
13,359
462
859
100.0
120.0
100.1
77.9
900.0
700.0
200.0
50.0
528
541
223
191
3
"si.s"
305
350
1 Includes certified and officers’ checks, cash letters of credit, etc.
8 Includes postal savings deposits.
*
In the tabulations for 1946 a small amount of unclassified deposits was included with interbank
deposits.
Detailed data for 1956: See Table 105, pp. 106-107.
Note: Due to rounding differences, data may not add precisely to the indicated totals.
34
FEDERAL DEPOSIT INSURANCE CORPORATION
the same time the number of noninsured commercial banks was reduced
by 46 percent, and the number of noninsured mutual savings banks
diminished 13 percent. Insured mutual savings banks increased in
number by 17 percent during this period.
While the total deposits of banks in the United States have been
rising, the deposits held by a number of banks have declined. Total
deposits in insured commercial banks rose 7 percent between June 30,
1954, and June 30, 1956, yet 23 percent of these banks reported a decline
in deposits in that period. Reductions in deposits were reported by some
banks in all States except Arizona. In 18 States more than 20 percent
of the insured commercial banks experienced declines in deposits. How
ever, because of gains by other banks, total deposits in insured commercial
banks were lower in only one of these States. As is shown by Table 19,
three-fourths of the banks which reported decreases in deposits had
declines of less than 10 percent.
Table 19.
N u m b e r o f I n s u r e d C o m m e r c ia l B a n k s in t h e U n it e d St a t e s
( C o n t i n e n t a l U . S. a n d O t h e r A r e a s ) i n W h i c h D e p o s i t s D e c l i n e d
B e t w e e n J u n e 30, 1954, a n d J u n e 30, 1956
Item
N um ber of
banks
T o t a l n u m b e r w ith d e clin e in d e p o s it s ....................................................................................
3,092
N u m b e r w ith p e rce n ta g e d e c lin e o f —
Under 5 ..........................................................................................................................................
5 to 10............................................................................................................................................
10 to 15............................................................................................................................................
15 to 2 0 ............................................................................................................................................
20 to 2 5 ..........................................................................................................................................
25 to 3 0 ............................................................................................................................................
30 or m ore.......................................................................................................................................
1,471
860
422
208
80
33
18
Com ponents o f bank deposits. Reference again to Table 18 shows
the amounts deposited to the credit of various classes of depositors on
December 31, 1956. For all banks, business and personal deposits repre
sented 85 percent of total deposits. The remainder was divided almost
equally between the deposits of governmental units and those of banks.
Chart F shows that, as a percentage of all deposits, total business and
personal deposits fluctuated only moderately during the ten years
ending December 31, 1956. However, in each of the years, 1952-1956,
the savings and time deposits of individuals and business increased as a
percentage of total deposits. Since the major part of the deposits in
mutual savings banks consists of savings accounts of individuals, these
banks are affected to a greater degree than are commercial banks by
the more rapid rise of time and savings deposits.
Adjustment of the reported figures to eliminate the amount of checks
in process of collection improves the data for the amount of deposits
available to individuals and business enterprises and State and local
BANK DEPOSITS
35
governments. Chart G, which shows rates of change of such adjusted
deposits and of total deposits of all banks semiannually for the past ten
years, indicates that variations of the two generally coincide in direction
but that in most instances, total deposits are more volatile. Pronounced
seasonal fluctuations in both total and adjusted deposits are also evident.
Chart F.
A m o u n t a n d D i s t r ib u t i o n o f D e p o s its * A l l B a n k s in t h e
U n it e d S t a t e s ( C o n t i n e n t a l U . S. a n d O t h e r A r e a s ) ,
A n n u a l l y , D e c e m b e r 31, 1947-1956
36
FEDERAL DEPOSIT INSURANCE CORPORATION
C h a rt G .
P e r c e n t a g e C h a n g e in T o t a l D e p o s it s a n d in A d ju s t e d
D e p o s it s , A l l B a n k s in t h e U n it e d St a t e s ( C o n t in e n t a l U . S. a n d
O t h e r A r e a s ) , B y H a l f - Y e a r P e r i o d s E n d i n g J u n e 30 a n d
D e c e m b e r 31, 1947-1956
§ H | TOTAL DEPOSITS
”1947 "
* 1*948 " ” 7949 "
1950 *
1951
1952
1953
1954
*1955
1956
Total dtpesits Im U S. Gmtrnmmt dtpMltt,
Interbank dtpotitt, cod ittail in proem •• colltctiwi.
The amounts and annual percentage changes of total, adjusted, and
other deposits for the years, 1947-1956, are given in Table 20.
T a b le 20.
T o t a l D e p o s it s , A d ju s t e d D e p o s it s , a n d O t h e r D e p o s it s o f A
B a n k s i n t h e U n i t e d S t a t e s ( C o n t i n e n t a l U . S . a n d O t h e r A r e a s ),
D e c e m b e r 31, 1947-1956, w i t h A n n u a l P e r c e n t a g e C h a n g e s
Amount (in millions)
ll
Percentage change from previous year
Year
Total
deposits
1956.....................
1955.....................
1954.....................
1953......................
1952.....................
1951......................
1950.....................
1949.....................
1948......................
1947.....................
$228,579
221,391
212,030
201,978
196,431
186,604
176,120
165,244
162,041
162,713
Adjusted
deposits1
$192,843
187,204
180,471
171,211
165,500
157,698
149,316
141,848
140,406
140,848
Other
deposits2
$35,736
34,187
31,559
30,767
30,931
28,906
26,804
23,396
21,635
21,865
Total
deposits
3 .2 %
4.4
5.0
2.8
5.3
6.0
6.6
2.0
- .4
3.8
Adjusted
deposits
3 .0 %
3.7
5.4
3.5
5.0
5.6
5.3
1.0
- .3
4.5
Other
deposits
4 .5 %
8.3
2.6
- .5
7.0
7.8
14.6
8.1
-1 .1
- .8
i
Business and personal deposits (including certified checks, etc.) and those o f States and sub
divisions, less the amount of cash items in process of collection.
*
United States Government deposits, interbank deposits, plus the amount of cash items in process
o f collection.
B a n k C a p it a l
Growth in capital accounts. The total capital accounts of all banks
in the United States amounted to $19,350 million at the close of 1956.
The rate of increase was 6.3 percent in 1956, compared with 4.9 percent
in the previous year. During the ten years ending December 31, 1956,
total capital accounts increased 71 percent.
37
BANK CAPITAL
C h a rt H .
B a n k s in
R
o f C a p it a l t o T o t a l A s s e t s , I n s u r e d C o m m e r c ia l
U n i t e d S t a t e s ( C o n t i n e n t a l U . S. a n d O t h e r A r e a s ),
D e c e m b e r 31, 1936, 1946, a n d 1956
a t io
the
1936
1946
1956
5 %_______10%
0 ________ 5 %_______ 10%
5%
0
A LABAMA
ARIZONA
ARKANSAS
CALIFORNIA
COLORADO
CONNECTICUT
DELAWARE
DIST. OF COLUMBIA
FLORIDA
GEORGIA
IDAHO
IL L IN O IS
INDIANA
IOWA
K A N SA S
KENTUCKY
LOUISIANA
MAINE
MARYLAND
MASSACHUSETTS
MICHIGAN
MINNESOTA
M ISSISSIP P I
MISSOURI
MONTANA
NEBRASKA
NEVADA
NEW HAMPSHIRE
NEW JERSEY
NEW MEXICO
NEW YORK
NORTH CAROLINA
NORTH DAKOTA
OHIO
OKLAHOMA
OREGON
PENNSYLVANIA
RHODE ISLAND
SOUTH CAROLINA
SOUTH DAKOTA
T EN N ESSEE
TEXAS
UTAH
V ERMON T
V IRGIN IA
WASHINGTON
WEST VIRGINIA
WISCONSIN
WYOMING
OTHER A REAS
UNITED STA TES AVERAGE — — — >— I I .3%
10%
38
FEDERAL DEPOSIT INSURANCE CORPORATION
As is shown on Chart H, the average ratio of capital to total assets
of insured commercial banks rose from 6.3 percent at the end of 1946
to 7.4 percent on December 31, 1956. However, at the end of 1956 the
ratio was substantially lower than it had been twenty years earlier.
Incom e
of
I nsured B a n k s
Growth o f bank incom e in 1956 and prior years. Total income of
insured commercial banks was 13 percent greater in 1956 than in the
preceding year, and nearly two and one-fourth times as large as in 1947.
Total income has increased in each year of the 10-year period ended
December 31, 1956.
The total income of insured mutual savings banks in 1956 was 12
percent greater than in 1955, and approximately twice as large as in 1947.
Sources o f bank incom e. Insured commercial banks received more
than four-fifths of their total income from loans and securities in 1956.
The proportion of the total income of insured commercial banks derived
from loans increased from 38 percent in 1947 to 59 percent in 1956;
while, in the same period, the proportion of income obtained from securi
ties declined from 37 percent to 23 percent.
Table 21.
S o u r c e s a n d D is p o s it io n o f T o t a l I n c o m e ,
I n s u r e d C o m m e r c ia l B a n k s in t h e U n it e d St a t e s
( C o n t i n e n t a l U . S. a n d O t h e r A r e a s ) , 1947 a n d 1952-1956
Amounts (in millions)
Percent of total
Income
T o ta l in c o m e . . . .
S ou rces
Loans...................
U. S. Government
obligations........
Other securities. .
Service charges on
deposits...............
Other current in
com e ................
Recoveries, etc.1
D is p o sitio n
Salaries and wages.
Interest on deposits
Other current ex
penses..................
Charge-offs, etc.2. .
Incom e taxes.........
Dividends to stock
holders*...........
Additions to capital
accounts.........
1956
1955
1954
1953
1952
1947
1956
1952
$7,482
$6,617
$6,405
$5,636
$5,076
$3,360
100.0%
4,413
3,697
3,263
3,156
2,784
1,282
59.0
54.9
38.2
1,343
370
1,334
351
1,273
325
1,207
298
1,099
277
1,080
179
17.9
5.0
21.6
5.5
32.1
5.3
386
340
312
271
245
148
5.2
4.8
4.4
720
250
656
240
601
631
552
152
527
144
409
262
9.6
3.3
10.4
2.8
12.2
7.8
2,093
806
1,896
678
1,762
618
1,652
535
1,495
458
947
298
27.9
10.8
29.5
9.0
28.2
8.9
1,558
994
815
1,386
707
794
1,258
553
907
1,189
448
786
1,076
362
695
737
295
302
20.8
13.3
10.9
21.2
7.1
13.7
21.9
8.8
9.0
617
566
517
474
442
315
8.3
8.7
9.4
600
590
790
552
548
466
8.0
10.8
13.8
100.0%
1947
100.0%
1 Recoveries from assets previously charged off except those credited to valuation reserve accounts;
profits on assets sold; and transfers from valuation reserve accounts.
2 Losses and other charge-offs except those charged to valuation reserve accounts, and transfers
to valuation reserve accounts.
a Includes interest on capital notes and debentures.
Note: Due to rounding differences, components may not add precisely to the totals.
39
INCOME OF INSURED BANKS
Service charges made by insured commercial banks on demand deposits
yielded more than two and one-half times as much income in 1956 as in
1947, while demand deposits rose only 35 percent in this period. Other
current income, which includes various fees, rents, and income from
trust departments, was 76 percent greater in 1956 than in 1947. Non
operating items consisting of recoveries on assets previously charged
off, transfers from valuation reserves to income, and profits on the sale
of assets provide a fluctuating source of income. Table 21 shows the
amounts of income from each of the various sources for 1947 and in
each of the years 1952-1956.
Insured mutual savings banks in 1956 received 93 percent of their
income from loans and securities. For insured mutual savings banks the
proportion of total income received from United States Government
obligations declined from 39 percent in 1947 to 15 percent in 1956. In
the same period the proportion of their income which the mutual savings
banks received from other securities doubled. Two-thirds of the income
of insured mutual savings banks in 1956 was derived from loans, com
pared with less than one-third in 1947. Table 22 shows the amounts of
income from each of the various sources for 1947 and in each of the
years 1952-1956.
T a b le 22.
Sou rces
I nsured M
(C o n t in e n t a l U .
and
D
is p o s it io n
S a v in g s B a n k s
utual
S.
and
in
of
the
O t h e r A r e a s ),
T
Incom e,
otal
U n it e d S t a t e s
1947
and
Amounts (in millions)
1952-19561
Percent o f total
Item
T o t a l i n c o m e .............
S o u rces
L oans.........................
U . S. Government
obligations............
Other securities. . . .
Other current in
come2.....................
Recoveries, etc.*----D is p o sitio n
Salaries and w a g es..
Dividends and in
terest on deposits.
Other current ex
penses2...................
Charge-offs, etc.4. ..
Incom e taxes6...........
Additions to capital
accounts................
1956
1955
1954
1953
1952
1947
$947
$846
$781
$684
$626
$475
100.0%
632
536
454
387
331
153
66.7
52.9
32.2
147
103
151
99
156
96
165
82
164
63
185
24
15.5
10.9
26.2
10.0
38.9
5.1
28
38
28
33
28
47
26
25
26
43
13
100
2.9
4.0
4.1
6.8
2.7
21.1
1956
1952
100.0%
1947
100.0%
80
75
71
65
60
45
8.5
9.6
9.5
609
536
466
415
365
181
64.3
58.3
38.1
89
61
9
83
56
9
83
51
11
74
58
9
80
60
9
49
112
6
9.4
6.5
1.0
12.8
9.6
1.4
10.3
23.6
1.3
98
87
99
63
51
82
10.3
8.2
17.2
1
Because of changes in 1951 in the m ethod of reporting, data for subsequent years are not strictly
comparable with those for 1947 nor with those for commercial banks.
5 Except for 1947, includes amounts classified as “ nonrecurring” income or expenses.
* Recoveries from assets previously charged off except those credited to valuation reserve accounts;
profits on assets sold; and transfers from valuation reserve accounts.
* Losses and other items charged off except those charged to valuation reserve accounts; and transfers
to valuation reserve accounts.
* Includes franchise taxes com puted on an income basis.
Note: Due to rounding differences, components may not add precisely to the totals.
40
FEDERAL DEPOSIT INSURANCE CORPORATION
The income of insured commercial banks from loans was almost three
and one-half times, and that of insured mutual savings banks four times,
as large in 1956 as in 1947. For insured commercial banks income from
securities increased less than one-half, and for insured mutual savings
banks by one-fifth. For both categories of banks the increase in income
from loans was due largely to the greater volume, while the increase in
income from securities was due to higher yields. The average amount
of loans held by insured commercial banks in 1956 was 155 percent
greater than in 1947; for insured mutual savings banks the increase was
331 percent. Holdings of securities decreased, 5 percent for insured
commercial banks and 2 percent for insured mutual savings banks. The
average rates of income received by insured commercial banks and by
insured mutual savings banks on loans, on United States Government
obligations, and on other securities, for each of the years from 1947 to
1956, are shown in Table 23.
Table 23.
A
verage
R
ates
of
I ncom e, I nsured B an k s,
Insured commercial banks
Year
On
loans
1956.....................
1955.....................
1954.....................
1953.....................
1952.....................
1951.....................
1950.....................
1949.....................
1948.....................
1947.....................
5.11%
4.88
4.79
4.84
4.64
4.45
4.34
4.22
4.04
3.79
On U . S.
Government
obligations
2.31%
2.09
1.98
1.98
1.80
1.65
1.59
1.61
1.57
1.54
1947-1950
Insured mutual savings banks
On
other
securities
2.29%
2.15
2.14
2.11
2.04
1.99
2.04
2.15
2.14
2.16
On
loans1
4.31%
4.25
4.15
4.12
4.09
4.14
4.35
4.37
4.43
4.51
On U . S.
Government
obligations
2.56%
2.51
2.31
2.49
2.43
2.35
2.35
2.33
2.29
2.28
On
other
securities
3.38%
3.30
3.19
3.16
3.05
2.98
2.95
3.00
3.00
2.99
1 Because of changes in 1951 in the method of reporting b y insured mutual savings banks, data for
1951-1956 are not strictly comparable with those for previous years nor with those for insured com
mercial banks.
Disposition o f bank incom e. Payments for salaries and wages are
the largest item among the expenditures of insured commercial banks,
amounting to 28 percent of total income both in 1947 and 1956. In the
10-year period ending December 31, 1956, the number of employees
increased by 56 percent, while salaries and wages increased 152 percent.
The disposition of income by mutual savings banks differs in many
respects from that of commercial banks. Because of differences in the
type of business transacted, mutual savings banks pay out a much
larger proportion of their income for interest and dividends and a much
smaller proportion for wages and salaries than do commercial banks.
In the 10 years prior to the close of 1956 the number of employees of
insured mutual savings banks increased 25 percent, and salaries and
wages increased 105 percent.
41
INCOME OF INSURED BANKS
Table 24 gives, for insured commercial banks and for insured mutual
savings banks, ratios to deposits of current operating expenses, and of
salaries and wages; and the average rate of interest paid on time and
savings accounts. In the 10-year period ending December 31, 1956, each
of these ratios for insured commercial banks increased. For insured
mutual savings banks the ratios of current operating expenses to deposits,
and of salaries and wages to deposits were slightly lower in 1956 than
they had been in 1947. The rate of return paid on deposits by mutual
savings banks is higher than the rate of interest paid on time and savings
accounts by commercial banks. The average rate of return paid on time
and savings accounts by insured mutual savings banks in 1956 was
2.75 percent, while the average interest rate paid on time and savings
deposits by insured commercial banks was 1.58 percent. Both the rate
of return paid by insured mutual savings banks on time and savings
accounts and the rate of interest paid by insured commercial banks
approximately doubled in the 10-year period ended December 31, 1956.
Table 24.
E
R a t io s a n d I n t e r e s t P a id
I n s u r e d B a n k s , 1947-1956
xpense
Insured commercial banks
Year
Total
current
operating
expenses
to total
deposits1
1956.....................
1955.....................
1954.....................
1953.....................
1952......................
1951.....................
1950.....................
1949.....................
1948.....................
1947.....................
2.33%
2.14
2.06
1.98
1.84
1.74
1.67
1.63
1.55
1.44
Salaries
and wages
to total
deposits
1.10%
1.03
1.00
.97
.91
.87
.82
.79
.75
.69
on
D
e p o s it s ,
Insured mutual savings banks
Interest
on time
and
savings
deposits
1.58%
1.38
1.32
1.24
1.15
1.03
.94
.91
.90
.87
Total
current
operating
expenses
to total
deposits1
0.76%
.77
.78
.79
.87
.88
.82
.79
.80
.79
Salaries
and wages
to total
deposits
0.36%
.36
.36
.37
.37
.37
.39
.39
.39
.38
Interest and
dividends
on time
and
savings
deposits
2 .75%
2.61
2.37
2.35
2.27
1.88
1.84
1.79
1.57
1.53
1 For insured commercial banks includes interest on time and savings deposits, which is about
one-sixth of total current operating expenses; for insured mutual savings banks excludes dividends on
time and savings deposits and includes amounts reported for 1951-1956 as “ nonrecurring expenses’ *.
Because of changes in 1951 in the method of reporting b y insured mutual savings banks, data for 19511956 are not strictly comparable with those for previous years nor with those for insured commercial
banks.
Reserves for losses on loans and securities. Losses and assets
written off may be charged directly to earnings or to reserves which have
been established for that purpose. Recoveries on assets previously
charged off and profits on the sale of assets may be credited to income
or to reserve accounts. In 1956 losses and charge-offs of loans by insured
commercial banks exceeded recoveries by $92 million. Of this, $81 million
was charged to reserves and $11 million directly to income. Losses and
charge-offs on securities exceeded recoveries and profits on sale of securi
ties in 1956 by $364 million. The amount charged to reserves was $92
million, and $272 million was charged directly to income.
42
FEDERAL DEPOSIT INSURANCE CORPORATION
Table 25 shows that in 1956 the reserves established for losses on
loans by insured commercial banks continued to increase both in amount
and in relation to the volume of loans outstanding. However, the reserves
for losses on securities declined in 1956 in amount and as a ratio of
securities held.
Table 25.
R e s e r v e s f o r L o sse s o n L o a n s a n d o n Se c u r it ie s ,
I n s u r e d C o m m e r c ia l B a n k s in t h e U n it e d S t a t e s
( C o n t i n e n t a l U . S. a n d O t h e r A r e a s ) , 1948-1956
(Amounts in millions of dollars)
i
Year
Changes reported
Amount of
reserves,
end of
year
Computed
net change
during
year1
N et
transfers
from
earnings2
N et losses
charged to
reserve
accounts*
O n loa n s
1956.............
1955.......................
1954........................
1953........................
1952.......................
1951........................
1950........................
1949........................
1948.......................
$1,561
1,268
1,072
964
906
818
674
549
410
$293
196
108
58
88
144
125
139
«
$375
253
165
114
127
176
161
193
230
$81
49
49
56
33
36
34
53
36
O n s e cu ritie s
1956.......................
1955.......................
1954........................
1953........................
1952........................
1951........................
1950........................
1949........................
1948........................
209
239
277
235
243
254
250
238
233
-3 0
-3 8
42
-8
-11
4
12
5
(*)
61
27
66
27
9
19
16
6
17
92
65
13
36
21
15
3
4
11
Ratio of
reserves to
loans or
securities,
end of
year
1.70%
1.51
1.50
1.41
1.39
1.40
1.28
1.27
.96
.28
.30
.32
.30
.31
.34
.34
.31
.33
1 Difference from amount of reserves reported for end of the preceding year. Differs in some years
from change reported for the year because of banks ceasing operations and not submitting earnings
reports, or because of other adjustments.
2 Transfers to reserve accounts in excess of transfers from reserve accounts.
* Losses charged to reserve accounts in excess of recoveries credited to reserve accounts.
4 N ot available.
Insured mutual savings banks had reserves for losses on loans equal
to 1.24 percent of loans outstanding at the close of 1956. A year earlier
the reserves were 1.34 percent of loans. The reserves for losses on securi
ties were 1.27 percent of securities in 1956, and 1.04 percent in 1955.
Profits of insured commercial banks in 1956 and prior years.
In 1956 net profits after income taxes of insured commercial banks were
5 percent greater than in 1955, but 7 percent less than in 1954 when
banks had unusually large profits from the sale of securities. Net profits
in 1956 were 56 percent greater than in 1947.
Selected operating ratios of insured commercial banks for each year
of the period 1947-1956 are shown in Table 26. Current operating earn
ings of insured commercial banks were 11 percent higher in 1956 than
1955. Current operating expenses rose less rapidly, and the ratio of
43
INCOME OF INSURED BANKS
current operating expenses to current earnings was lower in 1956 than
in 1955. The average of this ratio for the period 1947-1956 was 62 percent.
The ratio of service charges on checking accounts to total demand
deposits doubled in this period, and the ratio of net current operating
earnings to total assets rose in each year.
T a b le 26.
S e l e c t e d O p e r a t in g R a t io s o f I n s u r e d C o m m e r c ia l B a n k s
i n t h e U n i t e d S t a t e s ( C o n t i n e n t a l U . S . a n d O t h e r A r e a s ) , 1 9 4 7 -1 9 5 6 1
Year
1956..........................
1955..........................
1954..........................
1953..........................
1952.........................
1951.........................
1950.........................
1949.........................
1948.........................
1947.........................
Current
operating
expenses
to
current
earnings
61.63%
62.09
63.01
61.55
61.41
61.46
62.19
63.32
63.57
63.98
Average
service
charges
on
demand
deposits
0.28%
.25
.24
.21
.20
.20
.19
.19
.17
.14
N et
current
operating
earnings
to total
assets
1.32%
1.19
1.10
1.14
1.06
1.00
.93
.87
.82
.75
Profits
before
income
taxes
to total
assets
0.97%
.96
1.35
.98
.94
.87
.86
.76
.68
.73
Profits
after
income
taxes
to total
capital
accounts
7.82%
7.90
9.50
7.93
8.07
7.82
8.51
7.98
7.49
8.20
Dividends
to total
capital
accounts
3.96%
4.03
3.87
3.76
3.66
8.60
8.61
3.55
3.40
3.33
3.31
Retained
profits
to total
capital
accounts
3.86%
5.74
4.27
4.47
4.21
4.96
4.58
4.16
4.89
1 Asset and liability items are average of figures reported at beginning, m iddle, and end o f year.
In 1956 the ratio of profits after income taxes to total capital accounts
was slightly lower than in 1955. This ratio averaged 8.12 percent for
the years 1947-1956, and in only one year during this period was the
ratio below the 1956 figure of 7.82 percent. The ratio of dividends to
total capital accounts was one-fifth higher in 1956 than in 1947. Profits
for 1956 which were not distributed as dividends amounted to 3.86
percent of total capital accounts; the comparable figure was 4.03 percent
in 1955, and 4.89 percent in 1947. Dividends absorbed 51 percent of the
profits after income taxes in 1956, compared with 49 percent in 1955
and 40 percent in 1947.
Table 27 gives selected operating ratios for banks in various size
groups in 1956. Banks with deposits of less than $1 million had the
highest average ratio of current operating expenses to current earnings,
while banks with $500 million or more deposits had the lowest average
ratio. Banks in these two size groups had the highest average interest
paid on time and savings deposits, as well as having low average service
charges on demand deposits. Banks with deposits of $25 to $50 million
had the lowest average ratios of profits before income taxes to total
assets and of profits after income taxes to total capital accounts. The
average rate of dividends to total capital accounts was highest for banks
with deposits of $500 million or more, which distributed to stockholders
62 percent of their profits; they were lowest for banks with deposits of
less than $1 million, which distributed only 35 percent of their profits.
44
FEDERAL DEPOSIT INSURANCE CORPORATION
T a b le 27.
S e l e c t e d O p e r a t in g R a t io s o f I n s u r e d C o m m e r c ia l B a n k s
O p e r a t in g T h r o u g h o u t t h e Y e a r 1956 in t h e U n it e d S t a t e s
( C o n t i n e n t a l U . S. a n d O t h e r A r e a s ),
B a n k s G r o u p e d A c c o r d in g t o A m o u n t o f D e p o s it s
Size group
Current
operating
expenses
to
current
earnings
Average
interest
paid on
time and
savings
deposits
A l l b a n k s 1.........................................
6 1 .5 6 %
1 .5 4 %
Banks with deposits of—
Less than $1,000,000................
$1,000,000 to $2,000,000
$2,000,000 to $5,000,000
$5,000,000 to $10,000,000____
$10,000,000 to $25,000,000. .
$25,000,000 to $50,000,000. . .
$50,000,000 to $100,000,000. .
$100,000,000 to $500,000,000.
$500,000,000 or m ore...............
67.54
65.74
65.71
66.13
66.77
66.30
65.38
61.71
55.70
1.64
1.56
1.53
1.49
1.45
1.50
1.50
1.53
1.63
Average
service
charges
on
demand
deposits
0 .2 7 %
.25
.27
.32
.41
.45
.40
.32
.22
.18
Profits
before
income
taxes
to total
assets
Profits
after
income
taxes
to total
capital
accounts
Dividends
to total
capital
accounts
0 .9 3 %
7 .5 3 %
3 .8 4 %
1.06
1.04
.94
.86
.82
.78
.82
.91
1.03
7.10
7.82
7.91
7.46
7.21
7.00
7.32
7.58
7.64
2.48
2.69
2.87
2.93
3.01
3.19
3.50
3.87
4.71
1 Basic data differ from those used in preparing Table 26 in that asset and liability items are as of
December 31, 1956, and banks which operated only part of the year are not included here.
Additions to surplus by insured m utual savings banks in 1956
and prior years. The net additions to surplus accounts in 1956 by
insured mutual savings banks were 13 percent higher than in 1955, but
14 percent lower than in 1954. Net additions to surplus accounts from
operations were at the rate of 4.73 percent in 1956, 4.42 percent in 1955,
and 5.00 percent in 1954.
PART THREE
STATE DEPOSIT INSURANCE SYSTEMS, 1908-1930
S t a t e D e p o s it I n s u r a n c e S y stem s,
1908-1930
Fourteen States, prior to Federal deposit insurance, established
insurance systems for the protection of bank depositors or noteholders,
or both. Six of the systems were established prior to passage of the
National Bank Act and none of these continued after the levy of a
prohibitive tax on State banknotes in 1865. It was anticipated that the
most important part of the nation’s money supply, or circulating medium,
would thereafter be guaranteed by the Federal Government, as the
notes of national banks, which had such a guaranty, would take the place
of the notes previously issued by State banks. However, bank deposits
rapidly increased in importance relative to circulating notes, and various
proposals were made to provide insurance or guaranty of deposits, both
in the Federal Congress and in State legislatures.1 From 1907 to 1917
eight States established deposit insurance systems that operated for
varying lengths of time, some of them until 1930.
The fourteen State systems of bank-obligation insurance were described
in the Annual Report of the Corporation for 1952, and the results achieved
under the six systems that operated prior to 1866 in the Report for 1953.2
The results of the eight systems that operated during the period from
1908 to 1930 are described here.
The experience with insurance of bank obligations during the 19081930 period was on the whole less successful than that during the period
1829-1866. In four of the six earlier systems all claims arising from
insured obligations of banks in financial difficulties were paid; this was
accomplished in only two of the eight later systems, and in one of these
a part of the obligations was met from proceeds of a State bond issue.
All eight systems of the 1908-1930 period became insolvent, whereas
four of the six earlier systems continued to operate until expiration of
the charters of the participating banks or their conversion to national
banks.
Nevertheless, the systems of the 1908-1930 period were considered
highly successful up to the time of the bank failures associated with
the depression of 1921. This is illustrated by the following comments
on the Texas system after it had been in operation for ten years. At the
end of 1919 the Commissioner of Insurance and Banking stated:
There is a feature of the State banking system that, while it does not stamp it as
unique among the financial systems of the country, accords to it a prestige, in fact,
which few of them possess. I refer, of course, to the protection of unsecured and
1
Proposals for Federal legislation for deposit insurance, beginning in 1886, are described in the
Annual R eport of the Federal Deposit Insurance Corporation for 1950, pp. 68-101.
* Annual Report of the Federal Deposit Insurance Corporation for 1952, pp. 59-72, and 1953, pp. 45-67.
47
48
FEDERAL DEPOSIT INSURANCE CORPORATION
non-interest bearing deposits. Without this protection to the public, the system,
under the excellent supervision of Texas laws, would be admirable; with it, it is un
surpassed. There is no question to my mind that its steady growth to its present
colossal proportions has been due in a large measure to the increasing public confidence
in its impregnable solidarity and strength which this guaranty against public loss
engenders.
By creating this device, the Legislature has not alone accorded absolute protection
to the public; it has induced the public to turn its funds freely over to the banks for
use in promoting the public welfare. During all the years the guaranty fund has been
in operation, it has cost the banks only about $300,000—a sum about one-tenth of
one percent of the present deposits of the system, which in proportion to the amount
of money protected at this cost over the period of years it has been established, be
comes infinitesimal . . .
But the good it has wrought has not been confined to the protection of depositors’
money. It has utterly eliminated from community life the injurious effects of a bank
failure. State banks may close today; but if they do, the serenity of the people is not
disturbed, for the depositors know that within a few weeks at the longest, their funds
will be returned to them. This effect, by itself, is well worth the cost of procuring it.1
A few years later, the Secretary of the Texas Bankers Association de
scribed the view of Texas bankers in 1920 as follows:
Bankers of recognized ability insisted that the guaranty fund system was the
greatest piece of constructive legislation ever enacted in the country. They pointed
to its record of ten years. They preached the plan at bankers’ conventions. They
expanded with pride over the fund’s accomplishments and growing importance.2
In Nebraska the favorable opinion of deposit insurance on the part
of the bankers continued through the depression of 1921. In the early
part of 1922 a meeting of State bankers adopted a resolution which
included the following:
The present depositors’ guarantee law has been in operation for eleven years,
during which time not a single dollar has been lost to a single depositor in a state
bank in Nebraska.
The law has established and maintained the confidence of the people of our state.
It has successfully met and been tested by the severest price declines and business
disturbances ever experienced in this state . . .
It has stabilized banking and business conditions throughout our state. It com
mands the confidence and hearty support of the bankers themselves who have organized
a great corporation to help make the law function more efficiently and to promote
higher standards of banking in this state; therefore be it
Resolved by the State Bankers of Nebraska, in convention assembled, that
We favor and approve the present guarantee law of this state and that we are
opposed to the enactment of any amendments or changes in the law by the coming
special session of the Nebraska legislature.8
* State of Texas, Forty-fourth Annual Report o f the Commissioner o f Insurance and Banking for the
year ending August 31, 1919, Pertaining to Banking, pp. 9-10.
* W . A . Philpott, Jr., Secretary, Texas Bankers Association, American Bankers Association Journal,
March 1927, p. 659.
* The Northwestern Banker, V ol. 27, March 1922, p. 76.
STATE DEPOSIT INSURANCE SYSTEMS,
1908-1930
49
Character and extent of insurance. The bank-obligation insurance
systems of the 1908-1930 period pertained to deposits only. They were
known as “ deposit guaranty” systems, but in all cases the guaranty was
that of a fund derived from assessments on the banks; in no case did
the State guarantee the deposits, though in one the remaining obligations
of the system after its closing were assumed by the State through a
bond issue. The limitation of the insurance to deposits reflects, of course,
the fact that State-chartered banks did not issue circulating notes, as
they had done when the systems of the 1829-1866 period were in operation.
The systems of the 1908-1930 period were also relatively less important
at the height of their operations than those of the 1829-1866 period.
The maximum proportion of the deposits of all operating banks in the
respective States that were in the banks participating in insurance
ranged from 19 percent to 79 percent as compared with 50 percent to
100 percent of circulating notes and deposits in the six earlier systems.
This difference is due chiefly to the fact that the earlier systems operated
at a time wiien State governments were responsible for chartering and
regulating all incorporated banking institutions within their borders;
while in the more recent period banks chartered by the Federal Govern
ment, which were excluded from the State deposit insurance systems,
held a very large portion of all bank deposits in each of the States.
The deposit insurance systems of the 1908-1930 period were in pre
dominantly agricultural areas. Six were in the Great Plains region east
of the Rocky Mountains: North Dakota, South Dakota, Nebraska,
Kansas, Oklahoma, and Texas. The other two were in Mississippi and
Washington. The period of operation of each of the systems and a sum
mary of participation in them are given in Tables 28 and 29.
Table 28.
D
e p o s it
State
Oklahom a...............
Kansas.....................
T exas.......................
N ebraska................
M ississippi..............
South D a kota ........
North D akota. . . .
W ashington............
P a r t ic ip a t io n o f O p e r a t in g B a n k s in S t a t e
I n s u r a n c e S y s t e m s , D e c e m b e r 31, 1908-1930
Period of
operation1
1908-1923
1909-1929
1910-1927
1911-1930
1914-1930
1916-1927
1917-1929
1917-1921
Number of partici
pating banks2
Percent of
eligible banks8
Percent of all
banks in State4
Minimum
Maximum
Minimum
Maximum
Minimum
Maximum
463
39
34
647
258
322
337
46
695
714
990
1,009
306
566
723
116
100.0%
4.7
4.3
100.0
100.0
100.0
100.0
16.1
100.0%
65.6
96.6
100.0
100.0
100.0
100.0
37.9
50.9%
3.5
2.2
73.0
88.1
76.3
71.7
12.6
75.3%
51.9
57.7
84.7
91.1
81.8
81.4
28.9
1 In each State the system operated for only a part of the initial year or of the terminal year, or both.
2 For data b y years, see Table 36.
3 In five States all incorporated State banks which accepted deposits (except trust companies in
Oklahoma after 1911, and mutual savings banks in Washington) were required to participate. In the
other three States participation was voluntary. For data by years, see Table 38.
4 Banks ineligible for participation were predominantly national banks, but included trust com
panies in Oklahoma after 1911, trust companies and private banks in Kansas, and the State-owned
Bank of North Dakota in that State. For data b y years, see Table 38.
50
FEDERAL DEPOSIT INSURANCE CORPORATION
Table 29.
under
D
31, 1908-1930
e p o s it
D e p o s it s in B a n k s I n s u r e d
I n su ra n ce Sy stem s, D e c e m b e r
Amount (in thousands)1
State
Minimum
O klahom a.......................
Kansas.............................
Texas................................
Nebraska.........................
Mississippi......................
South D a kota ................
North D a k ota ................
W ashington....................
$31,617
3,340
2,750
73,890
45,493
63,317
59,773
39,823
Percent of total
deposits in eligible
banks2
St a t e
Percent of total
deposits in all banks
in State2
Maximum
Minimum
Maximum
Minimum
Maximum
$190,900
204,669
321,008
281,547
187,850
184,098
130,837
79,814
100.0%
1.5
1.2
100.0
100.0
100.0
100.0
26.8
100.0%
74.4
95.9
100.0
100.0
100.0
100.0
41.1
19.1%
.7
.3
38.2
66.8
55.1
41.6
12.4
51.8%
43.8
30.9
59.0
79.2
67.3
61.1
18.9
1 For data by years, see Table 37.
2 For data by years, see Table 38.
None of the eight States, except Kansas for a brief period, placed a
limit on the size of account, or amount of deposits owned by a depositor,
protected by the insurance; but all the States excluded some types of
deposits or those to which specified conditions were attached. In Texas
the insurance was limited to non-interest bearing deposits payable on
demand. In Kansas, for the first two years, insurance on savings deposits
was limited to $100 per person and to accounts bearing not over 3 per
cent interest per year; and on other interest-bearing accounts to those
with the same interest limitation and with a six-month to one year
maturity date. In the other States, and in Kansas after 1911, the in
surance applied to both demand and time deposits. In these States a
maximum rate of interest payable on deposits was prescribed by law
or required to be set by the bank supervisory authority, and except in
Nebraska payment of a higher rate of interest made a deposit ineligible
for insurance. All the States except Nebraska excluded deposits otherwise
secured. In Kansas, Mississippi, South Dakota, North Dakota, and
Washington the insurance did not cover deposits that represented
rediscounts or money borrowed by the banks. In Nebraska, deposits
with a collateral agreement or condition other than length of time to
maturity and rate of interest were excluded. In Texas public deposits,
certificates of deposit, deposits made for the purpose of converting a loan
to the bank into a deposit, and after 1923 certificates converted to non
interest bearing deposits within 90 days of a bank’s failure were not
eligible for insurance. In Mississippi after 1916 cashiers’ checks, certified
checks, and sight exchange were excluded. In most of the States the
statutory provisions regarding coverage were supplemented by court
decisions resulting from litigation. Such litigation arose both as to
whether certain obligations were deposits, and if deposits whether they
were protected. Thus in Texas special deposits, trust funds, and cashiers’
checks not arising from deposit accounts were excluded; and in several
STATE DEPOSIT INSURANCE SYSTEMS,
1908-1930
51
States payment of a bonus for making or renewing a deposit was con
strued to be interest.
Banks in financial difficulties. The number of participant banks
which suspended operations because of financial difficulties during the
periods the funds were in operation ranged from 1 in Washington to 372
in North Dakota. In several of the States some of the suspended banks
were reorganized or taken over with no contribution from or obligation
falling on the insurance fund. Table 30 shows the total number of sus
pended banks in each State, and the number entailing obligations on
the respective insurance funds, together with the total and insured
deposits involved in the latter cases. Data by years for those resulting
in obligations on the funds are shown in Tables 39 and 40, pages 69 and 70.
Table 30.
State D
F a il e d B a n k s a m o n g P a r t ic ip a n t s in
I n s u r a n c e S y s t e m s , 1908-1930
e p o s it
Entailing obligations on the insurance funds2
State
Total
number of
suspended
banks
O klahom a.................
Kansas.......................
T exas.........................
N ebraska...................
M ississippi................
South D akota..........
N orth D a k ota .........
W ashington..............
140
141
154
359
64
324
372
1
Reopened
without
obligations
on the
insurance
funds1
1
22
16
42
82
32
Insured deposits
Number3
139
119
138
317
64
242
340
1
Total
deposits (in
thousands)3
$29,486
25,265
37,627
61,489
14,550
56,586
39,094
10,443
Am ount (in
thousands)4
$25,068
21,151
25,469
61,790
14,833
48,375
24,274
8,452
Percent of
total
deposits
85.0%
83.7
67.7
100.5
101.9
85.5
62.1
80.9
1 Includes some banks taken over b y other banks.
2 Includes a few cases with no eventual loss to the insurance funds because proceeds of liquidation,
including assessment on stockholders, were sufficient to repay all deposit liabilities.
8 For data b y years, see Table 39.
4 For data b y years, see Table 40.
In some of the States, because of the deposits excluded from insurance,
there was a substantial difference between the deposits of a failed bank,
as reported at the time of failure, and the deposits finally adjudged to
be covered by the insurance. This was particularly true in Texas where
interest-bearing deposits were excluded, and in North Dakota where
many depositor claims for insurance were rejected by the D epositor
Guaranty Commission on the ground that they bore a higher rate of
interest than that permitted, or were discounts representing an exchange
of credit that was not a deposit of cash or its equivalent, or were cashiers’
checks representing merely a transfer of funds and not a deposit in the
bank. In Mississippi and Nebraska, on the other hand, the deposit
obligations finally paid from the insurance funds, or judged to be covered
by the insurance, exceeded the deposits of the banks as reported at
time of failure.
52
FEDERAL DEPOSIT INSURANCE CORPORATION
Table 31 shows average annual failure rates among the participants
in these deposit insurance systems, with the banks grouped by size.
The proportion of all participating banks that failed ranged from about
one in 300 per year for Washington to five per 100 per year in North
Dakota. There was also a wide range in the average annual amount of
deposits in failed banks relative to the deposits in operating banks, but
the rates differ substantially from those pertaining to number of banks
because of differences in the size of the banks involved.
T a b le 31.
B a n k F a i l u r e R a t e s a m o n g P a r t i c i p a n t s in
S t a t e D e p o s i t I n s u r a n c e S y s t e m s , 1908-19301
Banks with deposits of—
All par
ticipant
banks
$100,000
or
less
$100,000
to
$250,000
$250,000
to
$500,000
1.7
1.2
1.2
2.1
1.6
4.4
4.0
2.9
.8
.8
1.4
1.2
3.7
2.5
A verage a n n u a l
n u m b e r p er 100
o p e ra tin g b an k s
Oklahom a...........
Kansas................
Texas...................
N ebraska............
M ississippi.........
South D akota. . .
North D a k ota . .
W ashington........
1.6
1.2
1.1
2.0
1.4
4.2
5.0
.3
1.2
1.8
.8
2.6
3.7
4.9
9.2
A verage a n n u a l
d ep o sits in fa iled
b a n k s p er $100 o f
d ep o sits in o p e r
a tin g b an k s
Oklahom a...........
Kansas................
Texas...................
Nebraska............
M ississippi.........
South D akota. . .
North D a k o ta ..
W ashington........
$2.34
1.13
1.42
1.63
.70
3.87
3.58
4.18
$1.31
1.55
.82
2.52
2.79
4.98
7.46
$500,000 $1,000,000
M ore
to
to
than
$1,000,000 $2,000,000 $2,000,000
3.3
1.4
1.6
1.5
.6
4.0
2.0
1.7
.5
2.0
.6
.3
1.5
10.0
1.8
1.5
4.5
8.8
$1.70
1.20
1.19
1.98
1.49
4.32
3.62
$3.17
.77
.77
1.42
1.17
3.53
2.33
$3.84
1.39
1.75
1.56
.61
4.29
1.96
$1.92
.50
2.14
.72
.25
1.45
$8.51
2.34
1.00
11.47
8.13
1 Covers failed banks entailing obligations on the insurance funds (see Table 30).
The distribution of failure rates by size of bank indicates that in
Nebraska, Mississippi, and North Dakota there were relatively more
failures among the smaller banks than among the larger banks; but in
Oklahoma the failure rate was highest in the larger banks, and in Wash
ington the only failure was the largest bank in the system. In fact, in
both of the latter States, and also in Kansas and South Dakota the
largest bank participating in the insurance system was among the failures.
Methods used in paying depositors o f banks in financial diffi
culty. In six of the eight systems—Oklahoma, Nebraska, Texas, South
Dakota, North Dakota, and Washington—the deposit insurance law
provided that depositors of a failed bank were to be paid by the fund
in cash immediately, either in full or to whatever extent could not be
paid from the readily available assets of the bank. In Kansas the de
STATE DEPOSIT INSURANCE SYSTEMS,
1908-1930
53
positors were given interest-bearing certificates of indebtedness which
were reduced as the proceeds of liquidation became available, with the
final deficiency paid from the fund. However, it was expected that
depositors would be able to obtain their deposits promptly because the
certificates were negotiable and it was assumed that operating banks
would acquire them from the depositors of a closed bank. The same
procedure was used in Mississippi for several years, and then modified
to provide for payment from the insurance fund whenever it appeared
to the officer in charge of liquidation of a failed bank that the amount
to be collected was likely to be insufficient to pay the depositors.
In most of the States in which the depositors were to be paid in cash,
provision was also made for the issue of certificates of indebtedness in
the event that there was insufficient money in the fund, with such certifi
cates to be paid from future receipts. In these cases also it was expected
that the operating banks would regard the certificates as suitable assets
and would, therefore, acquire them from depositors who needed their
funds immediately.
In Oklahoma, the first of the systems to be established, the procedure
of paying the depositors of a failed bank in cash was followed in only a
small number of cases. In the majority of cases, the Bank Commissioner,
under his powers with respect to the handling of closed banks, approved
a reorganization of a failed bank or the assumption of its deposits by
another bank, with a payment from the fund, in cash or in certificates
of indebtedness payable from future receipts, or with a guaranty that
the fund would provide the difference between the deposits assumed
and the proceeds of liquidation. This procedure was also followed to
some extent in Texas, and in a very small number of cases in some other
States.
Assessments on participating banks. In all of the States the in
surance funds relied upon assessments on participating banks as a means
of obtaining the money necessary to pay depositors in failed banks. The
assessments were based on total deposits, or on deposits other than those
excluded from insurance. In six of the States—Oklahoma, Kansas,
Nebraska, Mississippi, South Dakota, and North Dakota—such assess
ments were levied annually at specified rates, with a larger initial rate
in three of the States, and except for South Dakota with provision for
an additional assessment if necessary. In the cases where additional
assessments were authorized, a maximum rate in any one year was
established, either at the beginning of the system or after it had been
in operation for a few years. In Texas an annual assessment was levied
for the purpose of accumulating a revolving fund usable for the immedi
ate payment of depositors of a closed bank. The amounts withdrawn
were restored by a special assessment upon the participating banks for
54
FEDERAL DEPOSIT INSURANCE CORPORATION
each failure, with a maximum for such assessments of 2 percent per year.
In Washington an initial assessment was levied with no provision (until
1921) for an annual assessment thereafter but with a provision for
special assessments as needed, with a specified maximum in any year.
In certain of the States which had an initial assessment of 1 percent
of deposits, a similar rate was assessed on the increase in deposits each
year, usually with a rebate if deposits declined. In most cases the assess
ments collected in any one year were levied on average deposits for the
preceding year; and in cases where certain classes of deposits (particularly
interest-bearing or secured deposits in Texas) were not insured, such
deposits were omitted from the assessment base. In all the States special
provisions were made for assessments on new banks, usually a specified
rate on the bank’s capital to be adjusted later on the basis of deposits.
In Kansas, operating banks joining the system after it was established
were required to contribute their proportionate share to the fund, equiva
lent to what they would have paid had they joined at the beginning of
the system. Because of these various provisions the average rate of
assessment, as computed by comparing the amount of assessments
collected in a calendar year with the reported deposits for some date
in that year, sometimes varied considerably from the combined rate
for regular and special assessments. Table 32 shows the principal statutory
provisions in each State, and also the range^in assessments levied and
in the computed rate of assessments paid.
In four of the States—Oklahoma, Kansas, Mississippi, and Wash
ington—participating banks were required to deposit with the Bank
Commissioner securities or cash, in an amount equal to 1 percent or
one-half of 1 percent of their deposits, as security for the payment of
future assessments. These, and the accumulated revolving fund in
Texas, were regarded as the property of the individual banks, to be
refunded, after allowance for any assessments due or necessary to meet
existing obligations of the fund, if a bank went into liquidation or ceased
to be a member of the system.
Insolvency o f the insurance funds. In all the States except Texas
the bank failures associated with the depression of 1921 or with the
continued unfavorable condition of agriculture throughout the 1920’s
resulted in obligations upon the funds greatly in excess of the receipts
from assessments. In Texas, all obligations of the fund for insured de
posits were eventually met, but the fund became insolvent after most
of the participating banks withdrew, with conflicting claims on the
fund. There was considerable variation in the length of time the funds
were able to meet their obligations as they became due. By March 1930,
all of the funds had ceased to operate, though in two cases—Nebraska
and Mississippi—amendments to the law provided for continuance of
STATE DEPOSIT INSURANCE SYSTEMS,
1908-1930
55
the assessments on participating banks, with the insurance inapplicable
in Nebraska to future failures and in Mississippi to future failures until
the obligations of the fund for past failures had been met.
T able 32.
A
ssessm en t
R
ates
in
St a t e D
Statutory rates (percent of deposits)1
State
1
Initial
Regular
annual
1.00
.05 to .20
Oklahoma5 . .
.05
K ansas..........
1.00
Texas6............
.25
.10
1.00
Nebraska7. . .
Mississippi
.05
South
.25
D a k ota . . .
North
.05
D akota8
Washington9. .50 to 1.00 none to .10
Special
(maximum
per year)
2.00 to none
.20
2.00
1.00 to .50
.20
e p o s it
I n su ran ce System s,
Range of
annual
assessment
rates levied
(regular
and
special)1
.20 to 1.20
.05 to .25
(•)
.05 to .95
.05 to .25
.25
.20
.50
.05 to .35
none to 1.10
1908-1930
Deposits
of cash or
securities
to secure
payment
of assess
Average ments (per
per
cent of
year
deposits)4
Computed yearly
rate of assess
ments collected2
Minimum
and
maximum3
.15
.04
none
.13
.03
to 1.49
to .21
to 1.84
to .91
to .25
.29
.08
.67
.43
.17
.22 to
.30
.24
.05 to
.07 to
.32
.90
.18
.41
1.00
.50
.50
1.00
1 Percent of total deposits, or of deposits covered by insurance, on basis of preceding year’s daily
average or specified date. In some States provisions were made for omission of assessments if the fund
reached a specified size, but this did not occur except with the annual assessment for the revolving
fund in Texas where after omitting the assessment for one year the specified size was raised. For rates
levied b y years, see Table 43.
2 Computed from assessments collected and the total deposits of banks in system at the beginning
of the year. Because of assessments on new banks and of various adjustments and refunds, and the
differences between total deposits at beginning of year and the deposits used as the assessment base,
the com puted rates, either maximum or minimum, m ay be larger or smaller than the rates levied.
3 Excluding years in which assessments covered only part of a year because of repeal of the law, or
the com puted rate was substantially distorted because of withdrawals from the system. See also note 6.
4 W ith a minimum of $500 in each of the four States. In Washington the required deposit was
dropped in 1921.
6 Annual assessments 1/20 of 1 percent from 1909 to 1913 and 1 /5 of 1 percent from 1913 to 1923;
maximum special assessments per year 2 percent from 1909 to 1913, 1/5 of 1 percent from 1913 to 1915,
and none thereafter.
8 The proceeds of the initial and regular annual assessments were used as a revolving fund, with
the withdrawals to pay depositors of failed banks replaced b y the proceeds of special assessments. The
range of rates levied is omitted because data are not available for the special assessments. The com puted
rate of assessment collected, both maximum and minimum and average per year, pertains only to the
special assessments, because the entire amount of the revolving fund accumulated from the initial
and annual assessments was returned to the participating banks.
7 The assessment tabulated here as “ initial” consisted of four semi-annual assessments of 1 /4 of
1 percent each, after payment of which the regular semi-annual assessments of 1/20 of 1 percent applied.
The maximum special assessment was 1 percent per year to 1923, but not more than sufficient to main
tain the fund at 1 percent of deposits, and 1/2 of 1 percent subsequent to 1923. The range of rates levied
shown here is approximate because data are not available for the actual special rates levied to restore
the fund to 1 percent of deposits.
8 The maximum rate levied exceeded in one calendar year the maximum permitted because the
latter related to years ended June 30, and a change was made in the dates on which special assessments
were payable.
9 The original law provided for an initial assessment of 1/2 of 1 percent and annual assessments
to maintain this percentage. An amendment of 1921 raised the initial assessment to 1 percent of de
posits, thus requiring the banks to pay 1 /2 of 1 percent in the early part of that year, and also for future
annual assessments of 1/10 of 1 percent. Late in 1921 after the failure of the Scandinavian-American
Bank the maximum special assessment of 1/2 of 1 percent was levied.
The first fund to cease operations was that of Washington, the last
to be established. After four years with no failure the largest bank,
holding about one-fifth of the deposits of all the banks in the system,
failed on June 30, 1921. The maximum assessment for that year was
levied but was insufficient to meet the obligations of the fund for insured
deposits after allowing for liquidation of the assets of the bank. Faced
with the prospect of another relatively large assessment the next year
56
FEDERAL DEPOSIT INSURANCE CORPORATION
all the participants in the system withdrew as they were permitted to
do under the law in that State.
The next system to be discontinued was the first one established.
The Oklahoma system ran into serious difficulties early in its history,
but the procedures used in handling failed banks, together with special
assessments as high as 1 percent per year, enabled the fund to survive
them. However, some indebtedness of the fund remained outstanding
after 1915, when because of a change in the law no further special assess
ments could be levied, and was not fully retired until June 1919. When
a wave of failures occurred in late 1920 and throughout 1921, the fund
could not meet its obligations, though the procedure used in handling
most of the closed banks—that of arranging for reopening or assumption
of the deposits by another institution with a guaranty by the fund—
resulted in smaller outlays than would have been required had all the
deposits in each case been paid immediately from the fund. It was soon
necessary for the fund to resort again to issuance of warrants, or certifi
cates of indebtedness, and to attempt to sell these to participating banks.
Before long the banks became reluctant to acquire the warrants, and
the State Banking Board then requested participant banks to permit
their use as the security for payment of future assessments, enabling
the Board to sell the United States Government bonds and other market
able securities previously deposited and to use the cash thus obtained
to meet the obligations of the fund with respect to current failures. By the
latter part of 1921 almost all of the previously deposited marketable
securities had been used, and it became obvious that the fund could no
longer meet its obligations. At a meeting of the State Banking Board
in November 1921 the issuance of warrants on the fund was discontinued,
which meant in practice the end of any protection to depositors by the
fund. By that date the depositors of 82 failed banks had been protected
by the fund. Assessments continued until the legislature early in 1923
repealed the law, though they were not fully collected, and during that
period 57 more banks failed. After repeal of the law the State Banking
Board proposed the issue of warrants to the depositors of these banks,
with the remaining assets of the fund to be used to pay a small dividend
to them and to the holders of the other outstanding warrants. This
procedure was approved by a District Court in 1932, with claims that
had not been presented to the court barred from participation; and
early in 1933 a 7 percent dividend was paid to the warrant holders and
to a few depositors of failed banks who had presented their claims, with
the fund retaining a portion of the balance on hand because some holders
of the earliest-issued warrants refused to accept the District Court’s
award and appealed to the State Supreme Court. In 1934 the State
Supreme Court ordered the remnant of the fund paid to the appealing
warrant-holders.
STATE DEPOSIT INSURANCE SYSTEMS,
1908-1930
57
The next State to repeal its guaranty law was Texas, in 1927. This
was the most successful of all the systems. The combination of provisions
for a sizable revolving fund and for special assessments to reimburse the
fund for payments to depositors enabled the fund to meet promptly
all of its obligations until the middle 1920’s. By that time, however, the
special assessments were running close to the permitted maximum of 2
percent a year, which the participating banks felt to be an intolerable
burden. Under the pressure of the bankers, the Legislature considered
repeal of the law in 1925, but this was rejected in favor of an amendment
permitting the participant banks to withdraw, and to be refunded their
respective shares of the revolving fund, by joining the alternative “ bond
security system” that had been established at the same time as the
guaranty system. Also, the provisions for posting of security by the
individual banks under the bond security system were relaxed, so that
each bank could, in effect, merely segregate some of its investments to
be held by the Bank Commissioner instead of in its own vault. With
this change in the law most of the banks participating in the deposit
insurance system withdrew. In the latter part of 1926 one of the banks
remaining in the system failed, with an amount of insured deposits
substantially larger than the remaining revolving fund after allowance
for sums refunded or due to be refunded to the banks that had withdrawn,
and eight more failures occurred before the law was repealed in February
1927. Eventually, the insured deposits of these banks were paid in full
either from the proceeds of liquidation of the banks’ assets, or from
remaining assets of the fund upon its final settlement. In addition, the
entire revolving fund was returned to the participating banks, and a
considerable part of the receipts from special assessments was also
repaid from the proceeds of liquidation of the assets of the failed banks.
South Dakota also repealed its deposit insurance law in 1927. The
fund had run into difficulties early in 1923. Depositors in 16 failed banks
had been paid in full, but in the next case, the fund was able to pay only
half of the deposits. From that time until repeal of the law no payments
were made to depositors of failed banks, but they were given certificates
of indebtedness of the fund for the amounts of the deposits approved as
insured, and the regular annual assessments continued to be collected.
In 1932, in accordance with a decision of the State Supreme Court, the
remaining assets of the fund were used to pay a dividend of 3/4 of 1
percent on the balances of the certificates remaining unpaid after divi
dends from liquidation, and a final dividend of 23/100 of 1 percent was
paid in 1939. These dividends went to depositors of 225 banks.
In Kansas, where participation in the deposit insurance system was
voluntary and withdrawal permitted at any time, the system operated
successfully until failure of the American State Bank, Wichita, in 1923.
This had been the largest bank in the system and it was apparent that
58
FEDERAL DEPOSIT INSURANCE CORPORATION
the fund would be unable to meet the resulting claims, though under
the Kansas law the fund was not called upon until completion of liquida
tion of a failed bank. To reduce if possible the loss which eventually
would have to be met a successor bank was organized to assume most
of the deposits of the failed bank, with banks participating in the insurance
system subscribing to its stock and absorbing the loss on the assumed
deposits. The impact of this failure on the participating banks influenced
them to begin withdrawing from the insurance system; and most of
them did so after a court decision in 1926 wrhich held that they could
forfeit the securities they had deposited as a guaranty of payment of
future assessments without liability for such assessments as might
be needed to meet the losses in the failures that had already occurred.
With these withdrawals the insolvency of the fund was apparent, and
the deposit insurance law w^as repealed in March 1929. The order of
completion of liquidation of the failed banks was followed in making
payments by the fund; and because of variation in the time required to
complete liquidation, the order in which the guaranty fund redeemed
its certificates of indebtedness differed from the order in which the
banks failed. The fund eventually paid the remaining unpaid insured
deposit claims in 29 banks, and more than nine-tenths of the claims in 2
additional banks; and made no payment in the case of the remaining 88
banks that failed while participating in the insurance system.
In North Dakota the deposit insurance law was also repealed in 1929.
The fund had run into difficulties in the latter part of 1920. Up to that
time, two banks in the system had failed, and in both cases the insured
deposits were paid in full from the fund. But with numerous failures
during the last few weeks of 1920, the fund was unable to meet its obliga
tions and payments wrere discontinued. In addition, receivership pro
cedures were found inadequate and difficulties encountered in determining
the deposit claims that were insured. Consequently, no payments to
depositors were made until near the end of 1924. At that time the De
positors Guaranty Fund Commission adopted the procedure of paying
a 10 percent dividend on the insured deposits of each failed bank, in
the order of failure, with the expectation that more might be paid later,
as rapidly as funds became available from assessment receipts. This
procedure continued until repeal of the law. By that time the 10 percent
dividend on insured deposits had been paid to depositors of 201 banks,
and nothing in the case of 137 other failed banks. Settlement of the
affairs of the fund was made in 1932, with a payment of 1 percent dividend
on insured deposits of the 137 banks.
Bankers operating under State law in Nebraska made a more deter
mined effort than those of any other State with deposit insurance to
make the system successful under adverse circumstances. Disturbed
by the large number of new banks opened, many of them operated by
STATE DEPOSIT INSURANCE SYSTEMS,
1908-1930
59
men with little banking experience, they obtained passage of legislation
in 1921 requiring the licensing of all executive officers of State banks,
the law stating that they must be “ of good moral character, known
integrity, business experience and responsibility, and be capable of
conducting the affairs of a bank on sound banking principles.” Bank
officers at the time the act took effect were given a three months*
license subject to revocation by the Department of Trade and Commerce.
In 1923, another amendment provided for a Guaranty Fund Commission
of which seven members were appointed respectively from among nomi
nees of the banks in seven groups of counties, with the Secretary of the
Department of Trade and Commerce as chairman. The same law also
provided for a Bankers Conservation Fund, supported by an annual
assessment not exceeding one-fourth of 1 percent of deposits on partici
pating banks, which could be used by the Guaranty Fund Commission to
operate banks in a failing condition, with the hope that they could be
rejuvenated and thus reduce the losses falling on the insurance fund.
However, the insurance fund itself was weakened by reducing from 1
percent to one-half of 1 percent of deposits the maximum special assess
ment per year on the participating banks which could be levied to pay
depositors of banks placed in receivership.
By 1926, though all depositors in banks placed in receivership were
being paid, it appeared that the Nebraska insurance fund might be
headed toward insolvency because of the large losses in the banks that
were operated by the Guaranty Fund Commission. The editor of the
chief banking journal in the area, after surveying the opinions of bankers
and the facts regarding the operation of the system, published a series of
articles under the title, “ Both Sides of the ‘Story No Other State Can
Tell’ ” , in which he summarized the situation as follows:
All in all, it would seem that those who say the Nebraska plan is a complete success,
are just as far wrong as those who say it is a dismal failure . . . The sane observer
might well conclude that the Nebraska plan is neither a success nor a failure. With
several years of fat crops, the situation may work out splendidly. With a few lean
years, the whole law would collapse. Some State bankers say the Guaranty Fund is
now hopelessly insolvent. Others believe it will straighten out Nebraska’s financial
situation in three years or less.1
The next year, when the Commission began to place in receivership
the banks it had been operating, depositors could not be paid from the
insurance fund. An investigation and audit of the fund was ordered by the
Legislature, and in March 1930, after a report to the Governor, the law
was repealed. A plan was adopted for a final settlement fund to be made
up of a small assessment on participating banks for the next ten years,
collection of assessments already levied which many of the banks had
not paid, and a State bond issue large enough to permit payment of all
1 The Northwestern Banker, V ol. 31, September 1926, p. 14.
60
FEDERAL DEPOSIT INSURANCE CORPORATION
deposits of the failed banks to the date of repeal. However, the bond
issue was rejected by the voters at a referendum, and the State Supreme
Court, in a decision that the Supreme Court of the United States declined
to review, declared the plan for continued assessments and the regular
and special assessments for the insurance fund during its last two years
were unconstitutional because under the changed conditions the law
served no public purpose and the assessments were confiscatory. A final
settlement of the affairs of the fund, made in 1934, resulted in payment
of depositors in two banks, and a partial payment in another, in which
no previous payments had been made by the insurance fund. In all,
depositors of 129 banks that failed from the beginning of the system to
the early months of 1927 were paid in full, those of 24 banks that failed
during the next three years received partial payments from the fund or
the final settlement fund before that was declared unconstitutional, and
depositors of 164 banks failing from 1927 to the time of repeal received
nothing from the insurance fund.
In Mississippi, where the insurance system also appeared to be success
ful during its early years, difficulties in the cotton areas in the middle
1920's brought about bank failures with obligations on the fund that
could not be met. The original law in Mississippi, as in Kansas, provided
for the issue of negotiable interest-bearing certificates to the depositors
of a failed bank, with dividends paid from proceeds of liquidation and
the final deficiency by the insurance fund. In 1924, an amendment
provided for immediate payment from the fund, with a proviso that
if the fund were insufficient, the depositors would be issued interestbearing certificates payable from future receipts of the insurance fund.
For several years, operating banks purchased the certificates, thus giving
prompt recovery to depositors who wanted immediate payment. How
ever, the amount of such obligations outstanding became so great that
operating banks were no longer willing to purchase them. In March
1930 the legislature approved an amendment to the deposit insurance
law providing that the guaranty would not be applicable to future
failures until existing obligations had been met, though the amount
outstanding was so large that the projected collections from assessments
would be absorbed for nearly twenty years. Two months later, the
legislature approved a bond issue to provide funds for retirement of
the outstanding certificates, with the bonds to be retired from the assess
ments on operating banks. When the bonds were ready for issue, they
could not be sold under the terms set by the legislature, but an arrange
ment was worked out through which the bonds were exchanged for the
outstanding certificates of indebtedness of the fund and therefore were
eventually paid when the bonds became due. The assessments on insured
banks continued until 1934, when the entire deposit insurance law of
the State was repealed.
STATE DEPOSIT INSURANCE SYSTEMS,
1908-1930
61
Disbursements to depositors and unpaid obligations of the
funds. Table 33 summarizes the experience of the eight States with
respect to the extent to which the obligations falling upon the respective
insurance funds were met by the funds or were never paid. The table
shows how insured deposits were paid, and the extent to which they
remained unpaid. Recoveries from liquidation of assets, directly or
through the insurance funds, ranged from 17 percent in North Dakota
to 75 percent in Washington. Recoveries from the insurance funds, in
addition to those made possible by liquidation of assets, ranged from
6 percent in South Dakota to 46 percent in Texas. The insured deposits
which were never paid from any source ranged from none in Texas and
Mississippi to 70 percent in South Dakota. Recoveries and losses in
the banks that failed each year in each of the States are given in Tables
41 and 42, pages 71 and 72.
Table 33.
I nsured D
B
an ks,
e p o s it s
St a t e D
and
e p o s it
O b l ig a t io n s
to
D
e p o s it o r s
I n su r a n c e Sy ste m s,
of
F a il e d
1908-1930
Recovered through
insurance funds
Insured
deposits1
Recovered
directly
from
liquidation
of assets2
A m o u n t s (in
thousands):
Oklahoma7..................
Kansas.........................
Texas............................
Nebraska.....................
M ississippi..................
South D akota. . . . . . .
North D akota. . . . . .
W ashington..............
$25,068
21,151
25,469
61,790
14,833
48,375
24,274
8,452
$11,175
11,241
7,490
19,420
7,080
10,385
4,154
6,361
P e rce n ta g e o f i n
su red d e p o sits
Oklahom a...................
Kansas
.........................
T exas............................
N ebraska.....................
Mississippi......... ..
South D a k ota ............
N orth D a k ota ...........
W ashington................
100.0%
100.0
100.0
100.0
100.0
100.0
100.0
100.0
44.6%
53.1
29.4
31.4
47.7
21.5
17.1
Paid by
fund and
recovered
from
liquidation
of assets3
$2,913
6,333
2,456
640
1,239
18
11.6%
24.9
4.0
4.3
2.6
.1
75.3
Paid by
fund and
not re
covered
from assets
(loss to
fund)4
$4,754
2,435
11,646
16,608
2,834
3,023
1,820
851
19.0%
11.5
45.7
26.9
19.1
6.2
7.5
10.1
Paid
from
other
sources5
$1,424
N ot
paid6
$6,225
6,051
23,306
4,279
33,728
18,282
1,240
6.7%
24.8%
28.6
37.7
28.8
69.7
75.3
14.7
1 Insured deposit claims arising from bank failures. Excludes interest on certificates of indebtedness
issued b y the funds. For data b y years, see Table 40.
2 Includes dividends by receivers or liquidators to insured depositors, and insured deposits assumed
b y other banks in excess of payments from the funds. For data b y years, see Table 41.
8
Recoveries by the funds on subrogated deposit claims which the funds had paid. In Mississippi,
includes recoveries on deposit claims paid from proceeds of bond issue.
4 Payments on insured deposits b y the fund adjusted for recoveries received b y the funds from
liquidation of assets of the failed banks; i.e ., loss to the funds. For data b y years, see Table 41.
5 In Kansas, loss to banks participating in the insurance system in the reorganization of the American
State Bank, W ichita. In Mississippi, paid from the proceeds of a State bond issue, adjusted for sub
sequent recoveries on the claims paid.
6 Loss to depositors, or holders of certificates of indebtedness of the funds. For data b y years, see
Table 42. See also note 7.
7 In addition to the unpaid deposits, approximately $1,113,000 of warrants, or certificates of in
debtedness of the fund, m ostly held b y the banks participating in the system, were never paid.
Note: Because of rounding, data may not add precisely to the indicated totals.
62
FEDERAL DEPOSIT INSURANCE CORPORATION
T a b le 34.
Sta te D
I ncom e
e p o s it
and
E x p e n d it u r e s
of
I n s u r a n c e S y s t e m s , 1 9 0 8 -1 9 3 0
(In thousands)
Incom e1
Expenditures
State
T otal2
Oklahom a.................
Kansas.......................
Texas8.......................
N ebraska...................
Mississippi®..............
South D a k ota ..........
N orth D a k ota .........
W ashington..............
$5,303
2,821
17,723
16,483
3,656
3,647
2,054
937
Assess
ments3
$5,279
2,678
17,723
16,483
3,604
3,585
2,002
921
Other4
$24
143
52
62
52
16
TotaP
$5,310
2,797
11,646
16,608
3,614
3,646
2,042
937
Payments
on insured
deposits5
$4,754
2,435
11,646
16,608
2,834
3,023
1,820
851
Interest
and
losses6
Operating
expenses7
$304
361
$252
681
545
59
26
99
78
163
60
1 Excludes receipts by the funds from proceeds of liquidation of failed banks, which are not com
parable because of differing provisions of law regarding the procedures for payment of depositors.
2 Except for Texas (see note 8), differences between total receipts and total expenditures represent
balances remaining at latest available statements for the insurance funds, or transferred to the general
fund of the State, or unexplained differences in data derived from various sources where complete in
formation is not available.
* In Oklahoma, includes $1,539,000 of guaranty fund warrants or other securities deposited as
security for payment of future assessments which were never paid or were sold for the benefit of the
guaranty fund (see note 6 to Table 43, p. 73). In Kansas, includes securities deposited as security for
payment of future assessments that were forfeited when most of the participating banks withdrew, but
does not include the loss of $1,424,000 taken b y participating banks in the reorganization of the failed
American State Bank, W ichita. In Texas, relates to the special assessments for paying depositors of
failed banks, not to the annual assessments to accumulate a revolving fund. In all States excludes assess
ments refunded because of adjustments or other reasons, except the refunds in Texas from the proceeds
of liquidation of failed banks.
4
Chiefly interest received, but includes some income from other sources in South Dakota and
from fees in N orth Dakota.
6 N et after allowance for recoveries b y the insurance funds from proceeds of liquidation of the
banks. Includes payments to operating banks which assumed the insured deposits of failed banks (in
Oklahoma and Texas and a few cases in other States).
6 In Oklahoma, estimated amount of interest paid on guaranty fund warrants. In Kansas, represents
interest paid on principal of insured deposits in the 29 banks for which such deposits were paid in full;
and in Mississippi, interest on the guaranty certificates (representing insured deposits) that were paid
by the insurance fund, on bills payable, and on the State bond issue for one year. In South Dakota
mostly and in Washington entirely, loss on portions of the insurance funds deposited in banks that
failed. In North Dakota uncollectible accounts.
7 In Oklahoma, Mississippi, and North Dakota, a portion of the operating expenses and in Kansas
all of such expenses were met from proceeds of examination fees, special assessments on operating banks,
or appropriations from the State. In Nebraska, operating expenses were met largely from assessments
on the banks in receivership, thus becoming part of the liquidation expenses of failed banks, but in
part from assessments on operating banks and legislative appropriations. For operating expenses in
Texas, see note 8.
8 Incom e and expenditures shown here pertain only to the special assessments, including assessment
adjustments at time of final settlement of the fund, to pay depositors in failed banks. The excess of
assessments over the net payments on insured deposits was returned to the participating banks. In
addition, assessments for the revolving fund, which amounted to more than $5 million over the course
of the years the fund operated, were also returned to the participating banks, partly at time of liquidation
or withdrawal from the fund (prior to 1926) but m ostly at time of final settlement of the affairs of the
fund. Some interest receipts were also available for return to the banks, but expenses incurred in settling
the affairs of the fund were deducted— which m ay have been more or less than the interest receipts;
and part of the operating expenses appear to have been included with those of the Banking Department.
Full information is not available for receipts and expenditures of the revolving fund subsequent to
August 31, 1922.
* Excludes $5 million receipts from bond issue, from which the deficit on insured deposits of
$4,279,000 and interest on guaranty certificates of about $524,000 were paid.
A summary of the income and expenditures of each of the insurance
funds is given in Table 34. Most of the income was derived from assess
ments on the participating banks. For two States—Oklahoma and
Kansas—the amounts shown in the table as assessments collected include
the value of securities which had been deposited by participating banks
to assure payment of future assessments, but had been diverted to the
use of the fund through the substitution of warrants that were never
paid or through forfeiture to the fund upon the banks’ withdrawal from
1908-1930
STATE DEPOSIT INSURANCE SYSTEMS,
63
the system. In six States there were small amounts received from interest
or other sources. The bulk of the expenditures consisted of payments
on insured deposits or to banks that assumed such deposits. In three
States—Oklahoma, Kansas and Mississippi—interest payments were
made on guaranty fund certificates outstanding before they were retired,
and in three States portions of the funds collected were lost in the failures
of banks in wiiich they had been deposited. Provisions for operating
expenses were varied, being met in whole or in part, in some of the
States, from funds appropriated or collected through examination fees
for support of the State banking department. In five of the States a
portion or all of the operating expenses of the deposit insurance systems
were met from the deposit insurance funds.
Table 35.
Sta te D
A
ssessm en ts
e p o s it
R
e l a t iv e
to
I nsu ran ce System s,
L o sses,
1908-1930
(Amounts in thousands)
State
Number of
years fund
operated1
Oklahom a...................
Kansas.........................
Texas4..........................
N ebraska.....................
M ississippi..................
South D akota............
N orth D a k ota ...........
W ashington................
15.0
19.7
17.1
18.7
16.0
11.5
12.0
4.5
Assessments
collected2
$5,279
2,678
17,723
16,483
3,604
3,585
2,002
921
Assessments
necessary to
meet losses
on insured
deposits3
$10,979
9,910
11,646
39,914
7,113
36,751
20,102
2,091
Equivalent average annual rate
of assessment on participating
banks (percent of total deposits)
Paid
0.42%
.12
.67
.43
.17
.25
.18
.37
Necessary to
meet losses on
insured deposits
0.87%
.44
.44
1.04
.34
2.52
1.84
.84
1 In Mississippi, to date of amendment mailing the insurance inapplicable to future failures; in
Washington, to withdrawal of all banks in system; in other States, to repeal of the law.
2 See Table 34.
3 Insured deposits of failed banks in excess of recoveries from the proceeds of liquidation o f the
banks’ assets.
4 In Texas, the excess of assessments collected over the net payments b y the insurance fund was
returned to participating banks upon completion of the liquidation of failed banks or the final settlement
o f the affairs of the fund.
In Table 35 the assessments collected, as given in the preceding table,
are compared with the amounts that would have been necessary to
meet the losses on insured deposits. In this comparison no allowance is
made for income from other sources, nor for interest payments on de
positors’ claims, operating costs, and other expenses. Further, no allow
ance is made for the funds needed to make immediate payment to de
positors of that portion of their insured claims eventually recovered
from the liquidation of the assets of the banks. Though some of the
States attempted, by providing an initial fund of 1 percent of deposits,
to establish such a reserve, these provisions were inadequate except in
the case of the revolving fund of Texas, and that became insufficient
64
FEDERAL DEPOSIT INSURANCE CORPORATION
when the great majority of the banks participating in the system
withdrew.
The assessments collected ranged from an amount equivalent to
an average annual rate on the deposits of participating banks of about
one-eighth of 1 percent in Kansas to about two-thirds of 1 percent in
Texas. The amounts that would have been necessary to meet losses on
insured deposits ranged from the equivalent of one-third of 1 percent
per year of deposits of participating banks in Mississippi to about 2.5
percent in South Dakota. The total assessments collected varied from
less than one-tenth of the amount needed to cover all losses on insured
deposits in South Dakota, to full coverage of such losses in Texas.
Inadequacies and factors responsible for failure o f the State
deposit insurance systems. Various explanations have been given
for the failure of these State experiments with deposit insurance. The
most prevalent is an assumption that deposit insurance provided a great
temptation toward ill-considered expansion and reckless loan manage
ment policies. This assumption is supported by the observation that in
most of the States with a deposit insurance system a relatively rapid
expansion occurred during the early years of the systems. Such expansion
took two principal forms: in some States a large increase in the number
of banks relative to population and wealth, and in most of the States an
expansion of bank loans and deposits by individual banks with inade
quate attention to the quality of assets acquired. The latter appears to
have occurred in the larger banks to as great an extent as in the smaller
banks: certainly it was a specific factor in the failure of some of the
relatively large banks in the systems. Inadequate regulation of banks,
with respect both to statutory requirements and to the quality of super
vision provided by banking departments, is also frequently cited as an
important factor in the failure of these insurance systems. Deficiencies
in legislative standards are in fact suggested by the extent and nature
of amendments to the banking codes after the funds had been operating
a few years, or after they had ceased to function; and inadequacy of
supervision appears obvious in some of the States, where there were
frequent turnovers in the personnel of the bank supervisory agency,
and provision for only a few examiners with salaries inadequate to retain
well-qualified men.
However, it is easy to place more stress than is warranted on the
presumption that deposit insurance itself led to ill-considered expansion
and reckless management, and that this together with inadequate
supervision was the dominant element in the failure of the systems.
This is clear from the fact that in six of the systems the failure rates
were lower than among State-chartered banks in several contiguous
States during the same periods, and in two of the systems lower than in
STATE DEPOSIT INSURANCE SYSTEMS,
1908-1930
65
all State banks in the nation. The more fundamental underlying factors
in the failures of the systems were the impact of the deflationary monetary
policy after the close of World War I and the accompanying business
depression, and the continued adverse economic circumstances through
out the 1920’s in the agricultural areas of the nation.
In a sense all the funds failed from inadequate assessments and in
sufficient accumulated reserves. But it would be unrealistic to assume
that the rates could have been made, as a practical matter, high enough
to have covered the cost. If the insurance had been required for all
banks this might have been possible, because the costs would have fallen
upon all establishments providing banking service and hence could
have been passed on to bank customers. But with the alternative open
to the banks of withdrawing from the system—under the provisions of
State law or by liquidation and conversion to national banks—the rates
which would have been necessary to have covered the costs could not have
been maintained.
Detailed tables and sources of data. Tables 36-43 give annual
data regarding the number of banks, their total deposits, insured deposits
and the degree to which they were paid, and the assessments collected.
The information from which these tables have been prepared was
obtained for the most part from the respective State banking depart
ments, partly from official reports published in State documents, partly
from records remaining in the offices of the State departments which
have been made available through the courtesy of the respective bank
supervisory officials, and partly from data published or available else
where but largely derived from the records of the State banking depart
ments. In some respects the published material, together with the avail
able records in the offices of the banking departments, do not provide
all the information needed for accurate tabulations, and in most of the
States it has been necessary to supplement the data actually collected
by estimates derived from partial data.
05
o
Table 36.
N
um ber
Oklahoma
of
B
an k s, and
N
Partic Total3
ipating4
in
Sta te D
Nebraska
e p o s it
Mississippi
Insurance System s,
South Dakota
1908-19301
N orth Dakota !j
i
Eligible
Eligible
N ot
Partic
partic ipating
ipating
Total3
N ot
Partic
partic ipating
ipating
Total3 Partic Total3 Partic T otal3 Partic Total3 Partic Total3
ipating4
ipating4
ipating4
ipating4
834
887
924
546
668
695
1,038
1,077
421
459
404
401
1,203
1,308
43
45
472
582
1911........................
1912........................
1913........................
1914........................
1915........................
914
923
913
913
903
631
615
582
563
557
1,107
1,113
1,141
1,153
1,196
446
432
439
420
427
442
462
481
508
526
1,370
1,442
1,536
1,551
1,532
45
55
61
59
54
643
704
788
790
777
916
935
965
983
1,007
669
694
728
765
803
308
293
273
258
648
530
1916........................
1917........................
1918........................
1919........................
1920........................
885
901
936
944
977
547
566
581
599
622
1,220
1,250
1,291
1,338
1,374
437
430
426
427
409
546
577
613
649
683
1,530
1,572
1,579
1,641
1,717
47
46
43
41
41
789
828
841
907
990
1,031
1,110
1,133
1,188
1,196
839
920
942
999
1,009
293
297
299
316
337
258
263
266
284
306
628
639
647
673
702
503
514
521
543
566
866
877
898
874
705
709
723
694
1921........................
1922........................
1923........................
1924........................
1925........................
938
910
556
463
1,375
1,349
1,323
1,297
1,269
377
369
357
371
381
714
698
681
651
611
1,681
1,647
1,645
1,618
1,582
34
34
34
37
497
970
936
916
896
337
1,170
1,137
1,118
1,101
1,072
986
955
938
928
903
336
331
338
335
338
306
300
306
299
301
702
692
662
552
495
566
561
535
438
385
843
849
743
678
642
661
665
569
513
482
1,223
1,109
1,102
547
794
794
399
78
39
1,524
748
34
1,043
1,012
882
804
883
855
726
647
325
325
321
306
289
288
285
271
422
322
555
512
470
409
371
337
N ot
Partic
partic ipating
ipating
DEPOSIT
1908........................
1909........................
1910........................
364
364
381
401
239
197
191
190
46
85
104
116
C O R P O R A T IO N
1 For periods of operation of the deposit insurance systems.
* December 31 or nearest available date.
* Total number includes all banks and trust companies operating in the State. Of these, national banks were ineligible for participation in State deposit insurance systems under
a ruling of the Comptroller of the Currency, and in some States certain types of banking institutions were ineligible under State law (Oklahoma, trust companies after 1911; Kansas,
trust companies and private banks; Texas, private banks; Washington, mutual savings banks).
4 Required to participate. Figure for Mississippi for 1914 includes all State banks, part of which may not have been participating banks on that date: participation was voluntary
to M ay 15, 1915.
INSURANCE
1926........................
1927........................
1928........................
1929........................
Washington
FEDERAL
Total*
P a r t ic ip a t in g
Texas
Kansas
Eligible
Year
end2
um ber
T a b l e 37.
T o t a l D e p o s i t s o f A l l B a n k s , a n d o f B a n k s P a r t i c i p a t i n g in S t a t e D e p o s i t I n s u r a n c e S y s te m s , 1 9 0 8 -1 9 3 0 1
(In millions of dollars)
Oklahoma
Texas
Eligible
Total
Partic
ipating
Total
Nebraska
Mississippi
South Dakota
N orth Dakota
Eligible
Total
Eligible
N ot
Partic
partic ipating
ipating
Total
Partic
ipating
T otal
Partic
ipating
Total
Partic
ipating
Total
Partic
ipating
32
55
61
189
171
54
45
46
47
274
299
4
6
47
55
1911........................
1912........................
1913........................
1914........................
1915........................
107
123
135
129
158
44
46
46
45
48
183
194
191
211
233
46
42
41
44
49
55
63
66
75
86
300
395
358
305
390
7
10
10
9
8
57
89
85
64
93
194
205
214
217
241
74
83
93
101
114
63
75
45
55
111
63
1916........................
1917........................
1918........................
1919........................
1920........................
265
382
339
513
434
85
137
121
191
161
330
400
428
487
447
65
73
80
88
81
118
152
170
205
191
606
763
643
1,132
862
11
12
12
15
14
149
204
179
321
266
343
419
478
513
432
166
223
260
279
255
103
141
159
237
160
79
107
120
188
123
141
195
239
281
219
84
123
151
184
145
171
210
214
174
105
123
131
104
1921........................
1922........................
1923........................
1924........................
1925........................
360
393
113
75
411
427
411
484
457
66
62
64
75
180
180
180
168
195
168
756
913
1,075
1,159
1,257
10
11
17
21
8
227
252
289
302
3
388
434
430
485
487
216
239
240
272
282
154
187
200
211
246
117
139
148
146
167
202
222
226
199
179
135
150
151
122
106
152
173
156
184
182
85
95
80
88
86
451
443
457
154
210
219
79
7
3
1,066
3
470
474
462
407
276
275
252
192
227
255
250
240
151
172
168
161
143
79
153
149
144
70
65
60
322
363
451
396
109
112
123
107
40
55
80
75
S Y S T E M S,
1908-1930
226
N ot
Partic
partic ipating
ipating
INSURANCE
75
106
121
Total
DEPOSIT
N ot
Partic
partic ipating
ipating
1908........................
1909........................
1910........................
1926.......................
1927........................
1928.......................
1929........................
Washington
STATE
Year
end2
Kansas
1 For periods of operation of the deposit insurance systems.
a Decem ber 31 or nearest available date.
ayaij,able becam e of lack of information regarding the identity of the banks that withdrew prior to January 1 ,1926, or those that withdrew between that date and September
29, 1926. In M a y 1926, 160 banks that remained in the system had deposits of $29,657,000 (statement of Bank Commissioner, The Texas Bankers Record, June 1926, p . 38)
O
Sta te D
e p o s it
Washington
1
North
Dakota
Kansas
Oklahoma
Washington
North
Dakota
South
Dakota
Mississippi
Nebraska
Texas
Kansas
Oklahoma
38.9
37.2
48.9
46.6
39.2
44.5
91.7
92.8
1911......................
1912......................
1913......................
1914.....................
1915.....................
69.0
66.6
63.7
61.7
61.7
39.9
41.5
42.2
44.1
44.0
49.8
51.7
52.3
54.7
55.2
46.9
48.8
51.3
50.9
50.7
93.5
92.8
92.8
93.1
93.5
73.0
74.2
75.4
77.8
79.7
88.6
88.1
1916......................
1917......................
1918......................
1919......................
1920......................
61.8
62.8
62.1
63.5
63.7
44.8
46.2
47.5
48.5
49.7
55.5
57.3
59.0
60.3
62.5
51.6
52.7
53.3
55.3
57.7
94.4
94.7
95.1
95.7
96.0
81.4
82.9
83.1
84.1
84.4
1921......................
1922......................
1923......................
1924......................
1925......................
59.3
50.9
51.9
51.7
51.5
50.2
48.1
65.4
65.4
65.6
63.7
61.6
57.7
56.8
55.7
55.4
21.3
96.6
96.5
96.4
96.0
40.4
32.6
7.0
3.5
42.2
8.9
4.7
2.2
4.3
1926......................
1927......................
1928.....................
1929......................
1 See note 3, Table 37.
42.0
51.8
50.7
24.0
27.4
45.7
51.0
17.3
18.4
92.2
90.4
81.8
41.2
37.4
34.1
34.6
30.6
29.9
32.5
34.7
35.3
36.9
54.5
59.8
61.7
62.8
63.9
18.9
22.6
23.9
21.0
23.8
89.5
90.3
89.1
87.4
91.7
38.2
40.3
43.4
46.5
47.5
72.3
73.4
56.9
88.1
88.6
90.0
89.9
90.8
80.1
80.4
80.5
80.7
80.6
81.4
80.8
80.5
79.4
31.9
35.9
35.6
37.2
36.9
35.8
38.1
39.6
42.0
42.8
64.3
67.7
67.9
69.9
70.3
24.6
26.7
27.8
28.4
30.9
93.1
94.5
93.7
95.7
95.0
48.3
53.3
54.4
54.3
59.0
76.2
75.8
75.4
79.2
76.8
59.4
62.7
63.1
65.5
66.4
60.9
58.4
61.1
59.9
84.3
83.9
83.9
84.3
84.2
91.1
90.6
90.5
89.3
89.1
80.6
81.1
80.8
79.3
77.8
78.4
78.3
76.6
75.7
75.1
31.3
19.1
43.8
42.1
40.8
40.3
36.8
73.2
74.4
72.3
72.2
67.8
30.1
27.6
26.9
26.0
l
95.7
95.9
94.4
93.6
55.8
55.0
55.8
55.9
57.8
75.6
74.3
74.2
69.2
67.9
66.6
67.3
66.8
61.4
59.3
56.1
55.2
51.4
47.8
47.6
84.7
84.5
82.3
80.5
88.9
88.6
88.8
88.6
76.3
73.7
72.5
71.7
17.2
1.6
.7
33.9
3.2
1.5
.3
1.2
58.6
57.9
54.7
47.1
66.8
67.3
67.3
67.1
55.1
45.4
43.7
41.6
12.6
23.4
27.3
28.9
16.1
30.1
35.3
37.9
i
12.4
15.2
17.7
18.9
26.8
32.9
39.4
41.1
C O R P O R A T IO N
65.5
75.3
75.2
INSURANCE
1908.....................
1909......................
1910......................
DEPOSIT
1
Of
Of
Of
Of
Of
Of
Of eli
Of
Of eli
Of
Of Of eli
Of
Of
Of eli
Of
Of
Of
Of
Of
Of eli
Of eli
all
all
all
all
gible
all
gible
all
all
all
gible
all
gible
all
all
all
gible
all
all
all
gible
all
banks banks banks banks banks banks banks banks banks banks banks banks banks banks banks banks banks banks banks banks banks banks
FEDERAL
South
Dakota
Percentage of deposits in participating banks
Percentage of banks participating
Year end
1908-1930
I nsurance System s,
Mississippi
in
Nebraska
P a r t ic ip a t io n
Texas
T able 38.
T a b le 39.
N u m b e r a n d D e p o s its o f F a ile d
B a n k s P a r t ic ip a t in g in
S ta te D e p o s it In s u ra n c e
Number of failed banks1
S y s t e m s , 1 9 0 8 -1 9 3 0
Deposits (in thousands of dollars)2
T otal
1911..
1912..
1913..
1914..
1915..
1926..
1927..
1928.
1929..
1930..
138
317
64
242
340
3
3
8
4
16
6
6
1
2
3
6
8
28
33
11
1
2
8
15
19
10
15
27
17
3
1
1
1
1
9
30
19
10
15
21
16
2
18
25
22
15
13
20
22
22
46
116
94
47
11
27
7
77
61
25
43
33
30
18
29,486
25,265
37
2,873
661
155
37,627
1,144
656
1,993
501
360
230
35
125
207
513
40
85
1,203
1,183
2,375
3,343
6,509
8,404
1,460
648
219
133
24
1,255
2,110 12,002
3,357
7,235
2,593
2,237
5,815
2,889
4,246
4,826
3,600
2,806
223
82
1,833
151
61,489
14,550
56,586
623
64
32
39,094
10,443
122
110
201
1,026
481
141
527
3,478
6,041
4,758
2,418
1,546
5,154
1,469
1,169
171
571
1,596
316
1,991
10,173
27,751
6,401
4,062
1,071
9,136
6,745
2,395
5,847
5,629
7,725
19,835
1,278
1,454
2,294
1,554
2,172
932
7,889
1,364
4,383
3,691
2,160
1,772
10,443
1908-1930
1921..
1922..
1923..
1924..
1925..
119
1
S Y S T E M S,
1916..
1917..
1918..
1919..
1920..
139
£
INSURANCE
1 908..
1 909..
1910..
.a
Ao
oqQ
&
<y
DEPOSIT
o
I*Q
w
STATE
Year o f
failure
1 Exclusive of suspended banks not placed in receivership that reopened or were taken over without payments from, or due from , the deposit insurance funds.
a
o f date of failure or, where this is not available, last available report prior to failure. Due to rounding, data may not add precisely to the indicated totals.
* For the later years, m any of the banks had become insolvent at earlier dates, and had been operated by the Guarantee Fund Commission.
05
co
R a t io to T o t a l D e p o s it s in B a n k s t h a t F a il e d W
S t a t e D e p o s i t I n s u r a n c e S y s t e m s , 1 9 0 8 -1 9 3 0
t h e ir
Insured deposits (in thousands of dollars)1
Mississippi*
South
D akota7
N orth
D akota8
W ashington9
8,452
1911.......................................
1912.......................................
1913.......................................
1914.......................................
1915.......................................
1,065
535
1,716
451
332
152
28
98
162
378
1916.......................................
1917.......................................
1918.......................................
1919.......................................
1920.......................................
40
84
1,078
906
2,009
2,196
1921.......................................
1922.......................................
1923.......................................
1924.......................................
1925.......................................
5,415
8,033
1,038
47
122
26
497
190
105
19
961
968
481
128
496
87
2,098
1,910
2,637
5,825
2,226
2,081
8,044
3,807
1,846
2,860
3,258
6,303
4,916
2,648
1,470
5,005
1,465
1,149
166
571
1,976
210
1,843
8,494
24,718
5,409
2,619
591
5,668
4,721
1,619
3,230
2,244
197
69
1,410
144
5,963
5,941
7,874
19,307
1,162
1,431
2,176
1,614
2,170
945
5,859
1,191
2,276
2,326
1,334
935
8,452
85.0
83.7
67.7
100.0
60.6
88.9
30.1
100.5
101.9
85.5
62.1
93.1
81.5
86.1
90.0
92.2
66.2
80^3
78^2
78.3
73^7
100.0
99^1
89.6
76.6
84.6
65.7
100.7
100.0
io o !o
81.6
76.7
86.5
78.9
80.7
16.6
94.4
100.0
90.7
94.0
43.2
60^3
90.6
78.5
80.5
85.8
93.0
67.0
65.5
63.9
67.4
67.5
104.3
103.3
109.5
95.1
97.1
99.8
98.3
97.5
100.1
123.8
66.5
92.6
83.5
89.1
84.5
64.5
55.1
62.0
70.0
67.6
89.7
80.0
88.5
83.9
76.9
95.1
102.0
105.5
101.9
97.3
90.9
98.4
94.9
103.9
99.9
101.4
74.3
87.3
51.9
63.0
61.7
52.7
83.2
95.6
71.1
Washington
Nebraska5
24,274
North
Dakota
Texas4
48,375
South
Dakota
Kansas*
14,833
Mississippi
Oklahoma2
61,790
80.9
99.7
80.9
1 The m ajor part of the differences between insured deposits, as given here, and total deposits at date of failure, shown in Table 39, is due to deposits excluded from insurance
coverage (see text, pages 50-51). H owever, some differences are due to deposit claims allowed that were not on the books or not included in those tabulated as of date of failure, or
to deposits on the books for which claims were not filed or which were disallowed on the ground that they were not deposit liabilities.
2 Estimated for a large proportion of the banks as the amount of deposits at date of failure, excluding those of banks and government and cashier’s checks. For failed banks that
were liquidated without being taken over or reorganized, such deposits exceeded by lHs percent the claims of the guaranty fund against the receivers. For the m ajority of the failed
banks the actual amount of insured deposits is unavailable, because the claims of the guaranty fund represented payments to an absorbing or successor bank that assumed the deposits
of a failed bank without a definite determination of the deposits covered by insurance.
* Guaranty fund certificates issued (estimated for a few banks for which the amount of certificates issued is not available). The figure for 1923 includes the estimated amount of
insured deposits of the American State Bank, W ichita, which were assumed b y the successor bank and represented on the liquidation accounts of the American State Bank by re
ceivers’ certificates instead of guaranty fund certificates.
4 Claims paid or payable by the guaranty fund (estimated for some banks, chiefly those absorbed b y another bank with a payment b y the fund).
6 Claims payable b y the guaranty fund (estimated for a few of the banks).
• All deposits eventually paid from assets, the guaranty fund, and proceeds of a State bond issue (estimated for one bank).
Amount paid b y guaranty fund for 16 banks for which all guaranteed claims were paid, and amount of guaranty fund certificates issued for the remaining failed banks.
For
additional notes, see p. 71.
http://fraser.stlouisfed.org/
Federal Reserve Bank of St. Louis
C O R P O R A T IO N
25,469
INSURANCE
21,151
37
1,741
588
DEPOSIT
25,068
1908.......................................
1909.......................................
1910.......................................
1926.......................................
1927.......................................
1928.......................................
1929.......................................
1930.......................................
in
FEDERAL
T o t a l ...................................
623
64
P a r t ic ip a t in g
Percentage ratio: insured deposits to total deposits at date o f failure
Year of
failure
111
h il e
Nebraska
an d
Texas
e p o s it s
Kansas
I nsured D
Oklahoma
T a b le 40.
T a b le 41.
R e c o v e r i e s o n I n s u r e d D e p o s i t s in B a n k s t h a t F a i l e d W h i l e P a r t i c i p a t i n g in S t a t e D e p o s i t I n s u r a n c e S y s te m s , 1 9 0 8 -1 9 3 0
(In thousands of dollars)
Recoveries from liquidation of assets1
2,588
3,792
582
1926 .....................................
1927
...................
1928
...................
1929
.
...................
1930.......................................
11,646
16,608
2,834
18
389
32
1,820
43
12
1
4
11
26
3
277
44
235
32
35
83
1,012
462
649
303
75
372
80
285
4,868
1,464
611
1,562
1,411
2,983
3,221
2,068
1,121
2,828
982
589
61
189
356
125
1,573
604
177
42
244
58
550
438
99
827
93
2,937
567
154
17
87
45
9
22
23
12
9
94
93
105
19
499
318
177
53
123
7
232
1,485
1,051
2,459
1,410
1,216
3,176
2,343
1,236
1,298
1,848
3,320
1,695
580
349
2,177
484
560
105
382
1,306
85
270
1,074
7,031
1,168
367
20
589
1,165
279
1,613
1,589
156
57
583
50
3,026
1,067
1,482
7,045
645
698
678
677
1,582
649
1,455
338
416
566
252
279
6,361
1,285
14
851
29
540
150
529
161
87
103
67
616
241
3,023
Washington
1921.......................................
1922.......................................
1923
...................
1924.......................................
1925
..............................
2,435
North
Dakota
1,919
4,754
' '9 ’
South
Dakota
38
84
1,043
823
997
Mississippi
................................
...........
.............
.................
................................
Nebraska
1916
1917
1918
1919
1920
Texas
109
16
97
158
367
Kansas
526
385
1,187
290
245
6,361
Oklahoma
Mississippi
.....................
..............................
.....................
..........................
.................
4,172
Washington
Nebraska
1911
1912
1913
1914
1915
11,624
North
Dakota
Texas
7,720
South
Dakota
Kansas
21,876
402
96
329
1,041
366
173
19
851
1908-1930
13,823
SY S T E M S,
11,241
37
1,125
347
INSURANCE
14,088
1908.......................................
1909
.....................
1910.......................................
DEPOSIT
T o t a l ....................................
STATE
Year of
failure
Oklahoma
|
N et payments to depositors from insurance fund2
1
Includes dividends paid directly to depositors, and those paid to the insurance funds on depositors’ claims, and estimated amount of insured deposits assumed by absorbing or
successor banks with payments from the insurance funds.
a Paym ents to depositors b y the insurance funds, or to absorbing or successor banks, less recoveries by the fund.
N ote: Because of rounding, data m ay not add precisely to indicated totals.
N otes to Table 40— continued
8 Claims approved b y Guaranty Fund Commission, estimated as follows: for 2 banks paid in full b y the fund, the amount of deposits paid; for banks on which a 10 percent divi
dend was paid, ten times the amount of such dividend allowed; for banks on which a 1 percent dividend was paid, one hundred times the amount of those dividends; total deposits
in a few cases paid in full b y receivers.
9 Warrants issued for the guaranteed deposits.
N ote: Because of rounding, data m ay not add precisely to the indicated totals.
T a b le 42.
L osses
on
D
e p o s it s
and
State D
O t h e r L ia b il it ie s in B a n k s t h a t F a il e d
e p o s i t I n s u r a n c e S y s t e m s , 1 9 0 8 -1 9 3 0
W
h il e
P a r t ic ip a t in g
in
(In thousands of dollars)
On insured deposits1
Year of
failure
6,225
%
8
a
A
7,475
G
Q
esj
X
0)
none
1
a}
I*
rO
a>
23,306
ft
.ft
*5
5
CO
1
a
Mo
3
m
4,279
Q
33,728
£ o
t,#
o rt
ZQ
18,282
a
S
bo
c
1
1,240
4
1,958
00
$
0)
El
•8
£
2,968
1,704
eg
+3 ©
O 03
ZQ
1
wQ
4
2,859
23,719
co
M
a
13
G
O
141
52
1911.......................................
1912.......................................
1913.......................................
1914.......................................
1915.......................................
4
4
4
4
1926.......................................
1927......................................
1928.......................................
1929.......................................
1930......................................
97
545
2,999
644
864
1,617
655
42
12
314
4,306
6,237
12,245
517
646
1,498
937
588
296
6,816
17,509
4,199
4,359
845
2,008
513
4,530
3,118
1,241
1,838
1,737
1,070
646
1,240
122
21
215
4
t
6
10
1,697
188
256
827
22
97
1,543
121
182
192
498
278
60
91
134
31
26
142
600
1,141
435
2,207
803
6,782
4,668
1,385
227
142
3
5
208
9
74
48
142
780
65
419
90
2,716
1,611
1,013
828
141
1 Insured deposits never repaid to depositors, either from the insurance fund or liquidation of assets, except for a portion of the loss in Kansas (see note 2) and the loss in Mississippi
which was assumed b y the State (see note 3 ).
2 Of this loss, $1,424,000 was assumed b y the participating banks in the reorganization o f the American State Bank, W ichita, which failed in 1923.
* Paid from proceeds of a State bond issue.
4 Data not available.
* Less than $500.
N ote: Because of rounding data m ay not add precisely to indicated totals.
C O R P O R A T IO N
1,582
1,542
4,227
456
INSURANCE
4
4
4
4
1916.......................................
1917.......................................
1918.......................................
1919.......................................
1920.......................................
1921.......................................
1922.......................................
1923.......................................
1924.......................................
1925.......................................
I
‘ft
ft
'§
1
eft
DEPOSIT
1908.......................................
1909.......................................
1910.......................................
m
3
o
A
£
&
O
FEDERAL
T o t a l ....................................
C3
a
o
A
a
3
o
On noninsured deposits and other liabilities
A ssessm en t R a te s and C o lle c tio n s
b y S ta te D e p o s it I n s u r a n c e
Additional6..........................
Washington
North
Dakota
.25
.25
.25
.25
.25
.05
.05
.05
.05
.50
.05
.10
.05
.25
.25
1.50
1.84
.49
.84
1.25
.95
.90
.85
.40
.60
.25
.25
.25
.25
.25
.25
.25
.25
.25
.25
.25
.25
.25
.35
.25
1.10
.25
.25
.25
.05
6
5.34
.60
.60
.30
.05
.25
.25
.25
.25
.25
.25
.25
.25
.25
.25
.10
If
90
133
209
232
302
37
48
71
84
97
9A71
82
1,549
(
{
2,002
921
15
44
98
153
118
139
186
255
330
427
43
60
75
62
139
74
89
86
2,318
1,972
2,046
l|005
1,616
238
199
228
253
251
442
335
350
330
274
285
249
205
256
202
583
1,672
1,653
885
309
289
299
309
296
292
264
253
205
167
148
44
16,483
177
407
272
141
145
5
14
200
62
182
220
318
506
639
107
157
78
344
343
3,991
4,179
1,245
2,416
3,772
129
25
9
1
934
147
975
564
133
61
18
502
1908-1930
1926.......................................
1927.......................................
1928.......................................
1929.......................................
1930.......................................
.05
.10
.15
.20
.10
Washington
.20
.20
.15
.15
.15
.20
.20
North
Dakota
1921.......................................
1922.......................................
1923.......................................
1924.......................................
1925.......................................
.22
.04
South
Dakota
.05
.05
.05
.05
.05
23
23
28
32
30
Mississippi
.20
.20
.20
.20
.20
.05
.05
.07
.03
601
511
202
148
162
3,585
Nebraska
1916.......................................
1917.......................................
1918.......................................
1919.......................................
1920.......................................
.25
.50
.30
.15
.15
.24
Kansas
.05
.05
.05
.05
.05
Oklahoma
1.20
.95
.40
.40
.40
17
18
3,604
17,723
S Y S T E M S,
1911.......................................
1912.......................................
1913.......................................
1914.......................................
1915.......................................
2,678
199
327
285
INSURANCE
.05
.05
5,279
DEPOSIT
1.00
.95
.20
STATE
T o t a l ....................................
1908.......................................
1909.......................................
1910.......................................
1908-1934
N et collections from assessments (in thousands of dollars)2
South
Dakota
Mississippi
Nebraska4
Texas8
Kansas
Year
Oklahoma
Assessment rates (percent)1
S y stem s,
Texas
Table 43.
*
Includes initial, regular annual, and special assessments (excluding regular annual assessment in Texas of 0.25 percent per year for revolving fund). The assessment base to which
the rates were applied was a daily or call-date average of deposits for the preceding year, excluding uninsured deposits in most of the States.
2 Collections from assessments described in note 1, and from banks entering the system, with allowance for refunds and other adjustments.
8
Relates to special assessments only, com puted from assessments collected and deposits of participating banks at the beginning of the year. N o information is available regarding
rates levied.
« Rates for some years are approximations to include additional assessments to bring fund to 1 percent of deposits, for which rate information is not available.
6 N ot available.
6
In Oklahoma, includes $426,000 in guaranty fund warrants or other securities deposited as security for payment of future assessments by banks that had nationalized and which
were cancelled or sold for the benefit of the guaranty fund; $1,113,000 of warrants outstanding and not paid upon final settlement of the affairs of the fund, most of which had been
M
deposited by participating banks as security for payment of future assessments; and $10,000 unpaid assessments collected at time of final settlement as a condition for the return of
securities deposited as security for paym ent of future assessments. In Kansas, amount is difference between total receipts of the fund (except interest) and assessments collected in the
respective years, and consists m ostly or wholly of proceeds from sale of securities deposited for payment of future assessments that were forfeited by withdrawing banks. In Texas, con
sists of adjustments at time of final settlement of the affairs of the fund to cover insured deposits in failed banks for which assessments had not been levied. In Mississippi, consists
o f assessments at the 0.25 percent annual rate from the end of 1930 after deposit insurance had ceased to apply to current failures, to early 1934, when the guaranty law was repealed.
PART FOUR
LEGISLATION AND REGULATIONS
Fe d e r a l Le g is l a t io n
EXTENSION OF THE FEDERAL DEPOSIT INSURANCE ACT
AND THE NATIONAL BANK ACT TO GUAM
P u b l ic L a w
896— 84th C
o n gress1
C h a p t e r 8 5 2 — 2 d S e s s io n
H. R.
11522
AN ACT
To implement section 25 (b) of the Organic Act of Guam by carrying out the recom
mendations of the Commission on the Application of Federal Laws to Guam,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America
in Congress assembled . . .
Sec . 2. The National Bank Act, and all other Acts of Congress relating to national
banks, shall, insofar as not locally inapplicable hereafter, apply to Guam.
Sec . 3. The Federal Deposit Insurance Act (64 Stat. 873; 12 U. S. C., secs. 18111831), is amended—
(a) by inserting the word “ Guam,” after the words “ Puerto R ico /’ in sub
section (a) of section 3, and by substituting a comma for the period at the end
of such subsection (a) and adding the following words “ and the word ‘State*
means any State of the United States, the District of Columbia, any Territory
of the United States, Puerto Rico, Guam, or the Virgin Islands.” ;
(b) by inserting the word “ Guam,” after the words “ Puerto Rico,” in each
place where they appear in subsections (d), (e), and (o) of section 3;
(c) by inserting the word “ Guam,” after the words “ Puerto Rico,” in the
first proviso of subsection (1) of section 3; and
(d) by inserting the words “ of Guam,” after the words “ of Puerto Rico,”
where they appear in subsection (m) of section 3 ...........
Approved August 1, 1956.
BANK HOLDING COMPANY ACT OF 1956
P u b lic L a w
511— 8 4 th C o n g r e s s 2
C h a p t e r 240— 2 d S e s s io n
H. R. 6227
AN ACT
To define bank holding companies, control their future expansion, and require
divestment of their nonbanking interests.
Be it enacted by the Senate and House of Representatives of the United States of America
in Congress assembled, That this Act may be cited as the “ Bank Holding Company
Act of 1956” .
1 70 Stat. 908.
2 70 Stat. 133.
77
78
FEDERAL DEPOSIT INSURANCE CORPORATION
DEFINITIONS
(a) “ Bank holding company” means any company (1) which directly
or indirectly owns, controls, or holds with power to vote, 25 per centum or more
of the voting shares of each of two or more banks or of a company which is or becomes
a bank holding company by virtue of this Act, or (2) which controls in any manner
the election of a majority of the directors of each of two or more banks, or (3) for
the benefit of whose shareholders or members 25 per centum or more of the voting
shares of each of two or more banks or a bank holding company is held by trustees;
and for the purposes of this Act, any successor to any such company shall be deemed
to be a bank holding company from the date as of which such predecessor company
became a bank holding company. Notwithstanding the foregoing (A) no bank shall
be a bank holding company by virtue of its ownership or control of shares in a fiduciary
capacity, except where such shares are held for the benefit of the shareholders of
such bank, (B) no company shall be a bank holding company which is registered
under the Investment Company Act of 1940, and was so registered prior to May 15,
1955 (or which is affiliated with any such company in such manner as to constitute
an affiliated company within the meaning of such Act), unless such company (or
such affiliated company), as the case may be, directly owns 25 per centum or more
of the voting shares of each of two or more banks, (C) no company shall be a bank
holding company by virtue of its ownership or control of shares acquired by it in
connection with its underwriting of securities and which are held only for such period
of time as will permit the sale thereof upon a reasonable basis, (D) no company formed
for the sole purpose of participating in a proxy solicitation shall be a bank holding
company by virtue of its control of voting rights of shares acquired in the course of
such solicitation, and (E) no company shall be a bank holding company if at least
80 per centum of its total assets are composed of holdings in the field of agriculture.
Sec . 2.
(b) “ Company” means any corporation, business trust, association, or similar
organization, but shall not include (1) any corporation the majority of the shares
of which are owned by the United States or by any State, or (2) any corporation
or community chest, fund, or foundation, organized and operated exclusively for
religious, charitable, or educational purposes, no part of the net earnings of which
inures to the benefit of any private shareholder or individual, and no substantial
part of the activities of which is carrying on propaganda, or otherwise attempting
to influence legislation, or (3) any partnership.
(c) “ Bank” means any national banking association or any State bank, savings
bank, or trust company, but shall not include any organization operating under section
25 (a) of the Federal Reserve Act, or any organization which does not do business
within the United States. “ State member bank” means any State bank which is a
member of the Federal Reserve System. “ District bank” means any State bank
organized or operating under the Code of Law for the District of Columbia.
(d) “ Subsidiary” , with respect to a specified bank holding company, means (1) any
company 25 per centum or more of whose voting shares (excluding shares owned by
the United States or by any company wholly owned by the United States) is owned
or controlled by such bank holding company; or (2) any company the election of a
majority of whose directors is controlled in any manner by such bank holding
company; or (3) any company 25 per centum or more of whose voting shares are
held by trustees for the benefit of the shareholders or members of such bank holding
company.
(e) The term “ successor” shall include any company which acquires directly or
indirectly from a bank holding company shares of any bank, when and if the relation
ship between such company and the bank holding company is such that the transaction
effects no substantial change in the control of the bank or beneficial ownership of
BANK HOLDING COMPANY ACT OF
1956
79
such shares of such bank. The Board may, by regulation, further define the term
“ successor” to the extent necessary to prevent evasion of the purposes of this Act.
(f) “ Board” means the Board of Governors of the Federal Reserve System.
(g) “ Agriculture” , as used in section 2 (a), includes farming in all its branches
including fruitgrowing, dairying, the raising of livestock, bees, fur-bearing animals,
or poultry, forestry or lumbering operations, and the production of naval stores,
and operations directly related thereto.
ACQUISITION OP BAN K SHARES OR ASSETS
Sec . 3. (a) It shall be unlawful except with the prior approval of the Board
(1) for any action to be taken which results in a company becoming a bank holding
company under section 2 (a) of this Act; (2) for any bank holding company to acquire
direct or indirect ownership or control of any voting shares of any bank if, after such
acquisition, such company will directly or indirectly own or control more than 5 per
centum of the voting shares of such bank; (3) for any bank holding company or
subsidiary thereof, other than a bank, to acquire all or substantially all of the assets
of a bank; or (4) for any bank holding company to merge or consolidate with any
other bank holding company. Notwithstanding the foregoing this prohibition shall
not apply to (A) shares acquired by a bank, (i) in good faith in a fiduciary capacity,
except where such shares are held for the benefit of the shareholders of such bank, or
(ii) in the regular course of securing or collecting a debt previously contracted in
good faith, but any shares acquired after the date of enactment of this Act in securing
or collecting any such previously contracted debt shall be disposed of within a period
of two years from the date on which they were acquired; or (B) additional shares
acquired by a bank holding company in a bank in which such bank holding company
owned or controlled a majority of the voting shares prior to such acquisition.
(b) Upon receiving from a company any application for approval under this section,
the Board shall give notice to the Comptroller of the Currency, if the applicant com
pany or any bank the voting shares or assets of which are sought to be acquired is
a national banking association or a District bank, or to the appropriate supervisory
authority of the interested State, if the applicant company or any bank the voting
shares or assets of which are sought to be acquired is a State bank, and shall allow
thirty days within which the views and recommendations of the Comptroller of the
Currency or the State supervisory authority, as the case may be, may be submitted.
If the Comptroller of the Currency or the State supervisory authority so notified by
the Board disapproves the application in writing within said thirty days, the Board
shall forthwith give written notice of that fact to the applicant. Within three days
after giving such notice to the applicant, the Board shall notify in writing the applicant
and the disapproving authority of the date for commencement of a hearing by it on
such application. Any such hearing shall be commenced not less than ten nor more
than thirty days after the Board has given written notice to the applicant of the action
of the disapproving authority. The length of any such hearing shall be determined
by the Board, but it shall afford all interested parties a reasonable opportunity to
testify at such hearing. At the conclusion thereof, the Board shall by order grant or
deny the application on the basis of the record made at such hearing.
(c) In determining whether or not to approve any acquisition or merger or con
solidation under this section, the Board shall take into consideration the following
factors: (1) the financial history and condition of the company or companies and the
banks concerned; (2) their prospects; (3) the character of their management; (4) the
convenience, needs, and welfare of the communities and the area concerned; and
(5) whether or not the effect of such acquisition or merger or consolidation would be
to expand the size or extent of the bank holding company system involved beyond
80
FEDERAL DEPOSIT INSURANCE CORPORATION
limits consistent with adequate and sound banking, the public interest, and the
preservation of competition in the field of banking.
(d)
Notwithstanding any other provision of this section, no application shall be
approved under this section which will permit any bank holding company or any
subsidiary thereof to acquire, directly or indirectly, any voting shares of, interest in,
or all or substantially all of the assets of any additional bank located outside of the
State in which such bank holding company maintains its principal office and place
of business or in which it conducts its principal operations unless the acquisition of
such shares or assets of a State bank by an out-of-State bank holding company is
specifically authorized by the statute laws of the State in which such bank is located,
by language to that effect and not merely by implication.
INTERESTS IN NONBANKING ORGANIZATIONS
Sec . 4.
(a) Except as otherwise provided in this Act, no bank holding company
shall—
(1) after the date of enactment of this Act acquire direct or indirect ownership
or control of any voting shares of any company which is not a bank, or
(2) after two years from the date of enactment of this Act or from the date
as of which it becomes a bank holding company, whichever is later, retain direct
or indirect ownership or control of any voting shares of any company which is
not a bank or a bank holding company or engage in any business other than
that of banking or of managing or controlling banks or of furnishing services
to or performing services for any bank of which it owns or controls 25 per centum
or more of the voting shares.
The Board is authorized, upon application by a bank holding company, to extend
the period referred to in paragraph (2) above from time to time as to such bank holding
company for not more than one year at a time if, in its judgment, such an extension
would not be detrimental to the public interest, but no such extensions shall extend
beyond a date five years after the date of enactment of this Act or five years after
the date as of which a company becomes a bank holding company, whichever is later.
(b) After two years from the date of enactment of this Act, no certificate evidencing
shares of any bank holding company shall bear any statement purporting to represent
shares of any other company except a bank or a bank holding company, nor shall
the ownership, sale, or transfer of shares of any bank holding company be conditioned
in any manner whatsoever upon the ownership, sale, or transfer of shares of any other
company except a bank or a bank holding company.
(c) The prohibitions in this section shall not apply—
(1) to shares owned or acquired by a bank holding company in any company
engaged solely in holding or operating properties used wholly or substantially
by any bank with respect to which it is a bank holding company in its operations
or acquired for such future use or engaged solely in conducting a safe deposit
business, or solely in the business of furnishing services to or performing services
for such holding company and banks with respect to which it is a bank holding
company, or in liquidating assets acquired from such bank holding company
and such banks;
(2) to shares acquired by a bank holding company which is a bank, or by any
banking subsidiary of a bank holding company, in satisfaction of a debt previously
contracted in good faith, but such bank holding company or such subsidiaries
shall dispose of such shares within a period of two years from the date on which
they were acquired or from the date of enactment of this Act, whichever is later;
BANK HOLDING COMPANY ACT OF
1956
81
(3) to shares acquired by a bank holding company from any of its subsidiaries
which subsidiary has been requested to dispose of such shares by any Federal
or State authority having statutory power to examine such subsidiary, but such
bank holding company shall dispose of such shares within a period of two years
from the date on which they were acquired or from the date of enactment of
this Act, whichever is later;
(4) to shares which are held or acquired by a bank holding company which
is a bank or by any banking subsidiary of a bank holding company, in good
faith in a fiduciary capacity, except where such shares are held for the benefit
of the shareholders of such bank holding company or any of its subsidiaries, or
to shares which are of the kinds and amounts eligible for investment by National
banking associations under the provisions of section 5136 of the Revised Statutes,
or to shares lawfully acquired and owned prior to the date of enactment of this
Act by a bank which is a bank holding company, or by any of its wholly
owned subsidiaries;
(5) to shares of any company which are held or acquired by a bank holding
company which do not include more than 5 per centum of the outstanding voting
securities of such company, and do not have a value greater than 5 per centum
of the value of the total assets of the bank holding company, or to the ownership
by a bank holding company of shares, securities, or obligations of an investment
company which is not a bank holding company and which is not engaged in
any business other than investing in securities, which securities do not include
more than 5 per centum of the outstanding voting securities of any company
and do not include any single asset having a value greater than 5 per centum
of the value of the total assets of the bank holding company;
(6) to shares of any company all the activities of which are of a financial,
fiduciary, or insurance nature and which the Board after due notice and hearing,
and on the basis of the record made at such hearing, by order has determined
to be so closely related to the business of banking or of managing or controlling
banks as to be a proper incident thereto and as to make it unnecessary for the
prohibitions of this section to apply in order to carry out the purposes of this Act;
(7) to any bank holding company which is a labor, agricultural, or horti
cultural organization and which is exempt from taxation under section 501 of
the Internal Revenue Code of 1954; or
(8) to shares held or acquired by a bank holding company in any company
which is organized under the laws of a foreign country and which is engaged
principally in the banking business outside the United States.
ADMINISTRATION
Sec . 5. (a) Within one hundred and eighty days after the date of enactment
of this Act, or within one hundred and eighty days after becoming a bank holding
company, whichever is later, each bank holding company shall register with the
Board on forms prescribed by the Board, which shall include such information with
respect to the financial condition and operations, management, and intercompany
relationships of the bank holding company and its subsidiaries, and related matters,
as the Board may deem necessary or appropriate to carry out the purposes of this
Act. The Board may, in its discretion, extend the time within which a bank holding
company shall register and file the requisite information.
(b)
The Board is authorized to issue such regulations and orders as may be neces
sary to enable it to administer and carry out the purposes of this Act and prevent
evasions thereof.
82
FEDERAL DEPOSIT INSURANCE CORPORATION
(c) The Board from time to time may require reports under oath to keep it in
formed as to whether the provisions of this Act and such regulations and orders
issued thereunder have been complied with; and the Board may make examinations
of each bank holding company and each subsidiary thereof, the cost of which shall
be assessed against, and paid by, such holding company. The Board shall, as far as
possible, use the reports of examinations made by the Comptroller of the Currency,
the Federal Deposit Insurance Corporation, or the appropriate State bank super
visory authority for the purposes of this section.
(d) Before the expiration of two years following the date of enactment of this Act,
and each year thereafter in the Board’s annual report to the Congress, the Board
shall report to the Congress the results of the administration of this Act, stating
what, if any, substantial difficulties have been encountered in carrying out the purposes
of this Act, and any recommendations as to changes in the law which in the opinion
of the Board would be desirable.
b o r r o w in g
by
bank
h o l d in g
COMPANY OR ITS
s u b s id ia r ie s
Sec . 6. (a) From and after the date of enactment of this Act, it shall be unlawful
for a bank—
(1) to invest any of its funds in the capital stock, bonds, debentures, or other
obligations of a bank holding company of which it is a subsidiary, or of any other
subsidiary of such bank holding company;
(2) to accept the capital stock, bonds, debentures, or other obligations of a
bank holding company of which it is a subsidiary or any other subsidiary of
such bank holding company, as collateral security for advances made to any
person or company: Provided, however, That any bank may accept such capital
stock, bonds, debentures, or other obligations as security for debts previously
contracted, but such collateral shall not be held for a period of over two years;
(3) to purchase securities, other assets or obligations under repurchase agree
ment from a bank holding company of which it is a subsidiary or any other
subsidiary of such bank holding company; and
(4) to make any loan, discount or extension of credit to a bank holding com
pany of which it is a subsidiary or to any other subsidiary of such bank holding
company.
Non-interest-bearing deposits to the credit of a bank shall not be deemed to be a
loan or advance to the bank of deposit, nor shall the giving of immediate credit to
a bank upon uncollected items received in the ordinary course of business be deemed
to be a loan or advance to the depositing bank.
(b)
The provisions of this section shall not apply (1) to the capital stock, bonds,
debentures, or other obligations of any company described in section 4 (c) (1) of this
Act, or (2) to any company whose subsidiary status has arisen out of a bona fide
debt to the bank contracted prior to the date of the creation of such status, or (3) to
any company whose subsidiary status exists by reason of the ownership or control
of voting shares thereof by the bank as executor, administrator, trustee, receiver,
agent, or depositary, or in any other fiduciary capacity, except where such shares are
held for the benefit of all or a majority of the stockholders of such bank.
RESERVATION OF RIGHTS TO STATES
Sec . 7. The enactment by the Congress of the Bank Holding Company Act of
1956 shall not be construed as preventing any State from exercising such powers
and jurisdiction which it now has or may hereafter have with respect to banks, bank
holding companies, and subsidiaries thereof.
BANK HOLDING COMPANY ACT OF
1956
83
PENALTIES
Sec . 8.
Any company which willfully violates any provision of this Act, or any
regulation or order issued by the Board pursuant thereto, shall upon conviction be
fined not more than $1,000 for each day during which the violation continues. Any
individual who willfully participates in a violation of any provision of this Act shall
upon conviction be fined not more than $10,000 or imprisoned not more than one
year, or both. Every officer, director, agent, and employee of a bank holding company
shall be subject to the same penalties for false entries in any book, report, or statement
of such bank holding company as are applicable to officers, directors, agents, and
employees of member banks for false entries in any books, reports, or statements of
member banks under section 1005 of title 18, United States Code.
JUDICIAL R EVIEW
Sec . 9. Any party aggrieved by an order of the Board under this Act may obtain
a review of such order in the United States Court of Appeals within any circuit wherein
such party has its principal place of business, or in the Court of Appeals in the District
of Columbia, by filing in the court, within sixty days after the entry of the Board’s
order, a petition praying that the order of the Board be set aside. A copy of such
petition shall be forthwith served upon the Board, and thereupon the Board shall
certify and file in the court a transcript of the record made before the Board. Upon
the filing of the transcript the court shall have jurisdiction to affirm, set aside, or
modify the order of the Board and to require the Board to take such action with
regard to the matter under review as the court deems proper. The findings of the
Board as to the facts, if supported by substantial evidence, shall be conclusive.
(The 'provisions of Section 10, which amend the Internal Revenue Code of 1954, have
been omitted.)
s a v in g
p r o v is io n
Sec . 11. Nothing herein contained shall be interpreted or construed as approving
any act, action, or conduct which is or has been or may be in violation of existing
law, nor shall anything herein contained constitute a defense to any action, suit, or
proceeding pending or hereafter instituted on account of any prohibited antitrust
or monopolistic act, action, or conduct.
SEPARABILITY OP PROVISIONS
Sec . 12. If any provision of this Act, or the application of such provision to any
person or circumstance, shall be held invalid, the remainder of the Act, and the ap
plication of such provision to persons or circumstances other than those to which
it is held invalid, shall not be affected thereby.
Approved May 9, 1956.
R u l e s a n d R e g u l a t i o n s o f t h e C o r p o r a t io n
Paym en t
D
of
e p o s it s
Insured N
M
a x im u m
T
R ates
im e
and
and
Interest T
onmem ber
of
hereon
Interest Pa yab le
Sa v in g s D
By
Banks
on
e p o s it s
Section 329.6 of the rules and regulations of the Corporation was amended, effective
January 1, 1957, to read as follows (21 F.R. 9693, December 7, 1956):
84
FEDERAL DEPOSIT INSURANCE CORPORATION
§ 329.6 Maximum rates12 of interest payable on time and savings deposits by insured
nonmember banks— (a) Maximum rate of 3 percent. No insured nonmember bank
shall pay interest at a rate in excess of 3 percent per annum, compounded quarterly,13
regardless of the basis upon which such interest may be computed:
(1) On any savings deposit,
(2) On any time deposit having a maturity date 6 months or more after the
date of deposit or payable upon written notice of 6 months or more,
(3) On any postal savings deposit which constitutes a time deposit.
(b) Maximum rate of
percent. No insured nonmember bank shall pay interest
at a rate in excess of 2K percent per annum, compounded quarterly,13 regardless of
the basis upon which such interest may be computed, on any time deposit (except
postal savings deposits which constitute time deposits) having a maturity date less
than 6 months and not less than 90 days after the date of deposit or which is originally
or becomes payable upon written notice of less than 6 months and not less than
90 days.
(c) Maximum rate of 1 percent. No insured nonmember bank shall pay interest
at a rate in excess of 1 percent per annum, compounded quarterly,13 regardless of the
basis upon which such interest may be computed, on any time deposit (except postal
savings deposits which constitute time deposits) having a maturity date less than
90 days after the date of deposit or which is originally or becomes payable upon
written notice of less than 90 days.
St a t e B a n k in g Le g is l a t io n
In 1956 the legislatures of seventeen States held regular sessions and nine of these
legislatures had special sessions. The legislature of one State continued its 1955 regular
session into 1956. The legislatures of six other States held special sessions.
This summary includes the more important State banking legislation enacted
in 1956.
SUPERVISORY AUTHORITY
Banking code.......................................................Illinois (S.B. 324, 1955, adopted 1956)
Application fees................................................New York (Ch. 464), Virginia (Ch. 176)
Examination fees..................................................................................................................
Colorado (Ch. 67), Maryland (Ch. 92), Massachusetts (Ch. 171), Virginia (Ch. 176)
Acceptance of bank examination reports and bank reports of condition from Federal
banking agencies and furnishing same and other bank information to Federal
banking agencies.............................................................................. Maryland (Ch. 75)
Superintendent authorized to regulate the servicing of mortgages by banks..............
.......................................................................................................... New York (Ch. 56)
ORGANIZATION AND CHARTER CHANGES
Branch offices and agencies................................. Alabama (Act 75), Georgia (Ch. 195)
Capital requirements...............................................................................Arizona (Ch. 94)
Capital notes and debentures........................................................ New Jersey (Ch. 114)
Change of principal place of business............................................. New York (Ch. 114)
1S The maximum rates of interest payable b y insured nonmember banks on time and savings deposits
as prescribed herein are not applicable to any deposit which is payable only at an insured nonmember
bank, or at an office of an insured nonmember bank, located outside of the States of the United States
and the District of Columbia.
18 This limitation is not to be interpreted as preventing the compounding of interest at other than
quarterly intervals: Provided, That the aggregate amount of such interest so com pounded does not
exceed the aggregate amount of interest at the rate above prescribed when com pounded quarterly.
STATE B A N K IN G L E G ISLA TIO N
85
Limitation on ownership or control of voting shares in two or more banks by any
company............................................................................................. Georgia (Ch. 195)
Merger or consolidation......................................................................New York (Ch. 39)
Authorization for State banks to become national banks by conversion, merger or
consolidation......................................................................................Michigan (Act 14)
Authorization for national banks to become State banks by merger or consolidation
............................................................................................................Michigan (Act 14)
GENERAL OPERATING PROVISIONS
Savings banks authorized to become insured by the Federal Deposit Insurance Corpo
ration....................................................................................... Massachusetts (Ch. 324)
Change of name or use of deceptive names...............................Pennsylvania (Ch. 604)
Admission in evidence of photographs or microphotographs of bank records..........
................................................................................................ South Carolina (Act 727)
Investigation fees.................................................................................. Virginia (Ch. 209)
DEPOSITS
Deposits of and security for public funds. .. .Alabama (Act 122), Arizona (Ch. 119),
Mississippi (S.B. 1599), New Jersey (Ch. 83), New York (Chs. 203, 483, 648)
Collateral security required for deposits of State funds in excess of amounts insured
under the provisions of Federal law............................................... Louisiana (Act 42)
Escheat of deposits............................................ Arizona (Ch. 126), Delaware (Ch. 628)
Joint deposits.....................................................Louisiana (Act 244), Virginia (Ch. 230)
Payment of deposit of deceased depositor... .Louisiana (Act 559), Virginia (Ch. 423)
Deposits in savings banks of private retirement or pension systems.........................
................................................................................................. Massachusetts (Ch. 175)
Collection and receipt of deposits by payroll deductions___ Massachusetts (Ch. 244)
Payment of tentative trust deposits to minor after death of depositor.....................
........................................................................................................ New York (Ch. 231)
Real estate loans..........................................................................................Massachusetts
(Ch. 242), Michigan (Act 35), Rhode Island (Ch. 3695), Virginia (Ch. 622)
No loan or discount permitted on shares of bank’s own capital stock.....................
...........................................................................................................Kentucky (Ch. 80)
Savings bank charges for loans to depositors on security of their deposit books. . . .
................................................................................................... Massachusetts (Ch. 88)
Loans of deposits in savings departments of trust companies.. Massachusetts (Ch. 94)
Loans to officers....................................................................................Michigan (Act 16)
Loans to development credit corporation........................................ Michigan (Act 158)
Loan limits.......................................................................................New Jersey (Ch. 115)
Loan to Federal National Mortgage Association.............................New York (Ch. 50)
Participation real estate loans by savings bank.............................New York (Ch. 363)
INVESTMENTS
Real estate for transaction of business...........................................................................
.......................................................Massachusetts (Ch. 197), Pennsylvania (Ch. 604)
Stock of Federal National Mortgage Association in connection with sale of mortgage
loans thereto.............................................................................................Massachusetts
(Ch. 204), New York (Ch. 51), Pennsylvania (Ch. 604), Virginia (Ch. 81)
86
FE D E R A L D E PO SIT IN SU R AN C E CORPORATION
No purchase or holding permitted of shares of bank’s own capital stock except to
satisfy or protect loan previously made with sale or disposal required within six
months.............................................................................................. Kentucky (Ch. 80)
Savings bank investments in preferred stock, guaranteed stock and common stock
................................................................................................. Pennsylvania (Ch. 367)
Investment of deposits in savings departments of trust companies.............................
.................................................................................................. Massachusetts (Ch. 94)
Revenue bonds.........................................................................................Alabama (Act 4)
Investment in obligations of Federal National Mortgage Association.....................
.......................................................................................................... New York (Ch. 50)
TRUST
a c t iv it ie s
Authorization for foreign corporations to act in fiduciary capacity.........................
................. Alabama (Act 107), Mississippi (Ch. 145), Pennsylvania (Ch. 557)
Prudent man investment rule authorized for fiduciaries..............Mississippi (Ch. 212)
Registration in name of nominee of securities held by fiduciary bank or trust company
.................................................................................................... Mississippi (S.B. 1743)
Commission rates of executors, administrators and guardians... .New York (Ch. 54)
Mortgage investment fund..........................................................Pennsylvania (Ch. 619)
Investment of trust funds............................ Pennsylvania (Ch. 606), Virginia (Ch. 83)
Common trust funds..................................................................Rhode Island (Ch. 3839)
CHECKS AND COLLECTIONS
Time limit on stop-payment orders on checks..........Kentucky (Ch. 48-six months)
Deferred posting and delayed returns act.........................................Kentucky (Ch. 47)
Authority to refuse payment of checks one year after date..........Kentucky (Ch. 48)
DIRECTORS, TRUSTEES, OFFICERS, AND EMPLOYEES
Loans to officers....................................................................................Michigan (Act 16)
Limitations on purchase of life insurance by savings bank for its officers or employees
........................................................................................................ New York (Ch. 160)
HOLIDAYS
Legal holidays......................................................................................................................
Louisiana (Acts 463, 549), Pennsylvania (Ch. 423), South Carolina (Act 718)
Saturday holiday................................................................................... Virginia (Ch. 366)
TAXATION
Capital stock tax.................................Ohio (H.B. 94XX, 945XX), Virginia (Ch. 188)
LIQUIDATION
Voluntary liquidation
Pennsylvania (Ch. 604)
PART FIVE
STATISTICS OF BANKS AND DEPOSIT INSURANCE
00
00
N umber, Offices,
and
D eposits
of
Operating Banks
Table 103.
Number and deposits of operating banks in the United States (continental U. S.
and other areas), December 31, 1956
Banks grouped according to insurance status and by district and State
The line of demarcation between banks and other types of financial
institutions is not always clear. In these tables provision of deposit
facilities for the general public is the chief criterion. However, trust
companies engaged in general fiduciary business though not in deposit
banking are included; and credit unions and savings and loan associa
tions are excluded except in the case of a few which accept deposits
under the terms of special charters.
The tabulations for all banks and trust companies are prepared in
accordance with an agreement among the Federal bank supervisory
agencies. Deposit data are tabulated from individual reports of assets
and liabilities of the banks included. Institutions included are classified
in three groups: commercial and stock savings banks, nondeposit
trust companies, and mutual savings banks. However, the second
category does not apply to insured banks.
C O R P O R A T IO N
Number of operating banking offices in the United States (continental U. S.
and other areas), December 31, 1956
Grouped according to insurance status and class of bank, and by State and type
of office
INSURANCE
Table 102.
DEPOSIT
Changes in number and classification of operating banks and branches in the United
States (continental U. S. and other areas) during 1956
FEDERAL
Table 101.
Com m ercial and stock savings banks include the following
categories of banking institutions:
M utual savings banks include all banks operating under State
banking codes applying to mutual savings banks.
National banks;
Incorporated State banks, trust companies, and bank and trust
companies, regularly engaged in the business of receiving deposits,
whether demand or time, except mutual savings banks;
Stock savings banks, including guaranty savings banks in New
Hampshire;
Industrial and Morris Plan banks which operate under general
banking codes, or are specifically authorized by law to accept de
posits and in practice do so, or the obligations of which are regarded
as deposits for deposit insurance;
Institutions excluded. Institutions in the following categories are
excluded, though such institutions may perform many of the same
functions as commercial and savings banks:
Banks which have suspended operations or have ceased to accept
new deposits and are proceeding to liquidate their assets and pay
off existing deposits;
Special types of banks of deposit: cash depositories in South
Carolina; cooperative exchanges in Arkansas; savings and loan
companies operating under Superior Court charters in Georgia;
government operated banks in American Samoa, North Dakota,
and Puerto Rico; a cooperative bank, usually classified as a credit
union, operating under a special charter in New Hampshire; two
savings institutions, known as “ trust companies,’7 operating under
special charters in Texas; employes’ mutual banking associations in
Pennsylvania; the Savings Banks Trust Company in New York; and
four branches of foreign banks which engage in a general deposit
business in the continental United States or in Puerto Rico.
Private banks under State supervision, and such other private
banks as are reported by reliable unofficial sources to be engaged
in deposit banking;
Nondeposit trust com panies include institutions operating under
trust company charters which are not regularly engaged in deposit
banking but are engaged in fiduciary business other than that incidental
to real estate title or investment activities.
Building and loan associations, savings and loan associations,
credit unions, personal loan companies, and similar institutions,
chartered under laws applying to such institutions or under general
incorporation laws, regardless of whether such institutions are au
thorized to accept deposits from the public or from their members
and regardless of whether such institutions are called “ banks” (a
few institutions accepting deposits under powers granted in special
charters are included);
Morris Plan companies, industrial banks, loan and investment
companies, and similar institutions except those mentioned in the
description of institutions included;
Branches of foreign banks, and private banks, which confine
their business to foreign exchange dealings and do not receive
“ deposits” as that term is commonly understood;
Institutions chartered under banking or trust company laws, but
operating as investment or title insurance companies and not en
gaged in deposit banking or fiduciary activities;
Federal Reserve banks and other banks, such as the Federal Home
Loan banks and the Savings and Loan Bank of the State of New
York, which operate as rediscount banks and do not accept deposits
except from financial institutions;
The postal savings system.
Table 101.
C h a n g e s in N u m b e r a n d C la s s i f i c a t io n o f O p e r a t in g B a n k s a n d B r a n c h e s
i n t h e U n i t e d S t a t e s ( C o n t i n e n t a l U . S. a n d O t h e r A r e a s ) D u r i n g 1956
Non
insured
Members F . R .
System
Total
Total
National State
N ot
mem
bers
F. R.
S ystem
N on
Banks d ep osit
of de
trust
com
posit
panies1
Total
In
Non
sured2 insured
N et c h a n g e d u r in g y e a r.
B an k s ce a s in g o p e r a t io n s ...................................
Suspended banks not reopened or succeeded .
Absorptions, consolidations, and mergers. .. .
Other liquidations..................................................
13,441
13,457
767
827
13,680
13,756
13,218
13,237
4,651
4,692
1,807
1,847
6,760
6,698
402
460
60
59
-76
-16
-60
-7 6
-19
-41
-4 0
+62
-58
+1
122
107
107
122
107
107
6
72
72
119
119
3
190
8
183
6
6
+67
-6 7
-2
-63
-2
2
N o n in su re d b a n k s b e c o m in g in s u r e d .............
Successors to noninsured operating ban ks........
Admissions to insurance, operating ban ks. . . .
Admissions to F. R . System, operating ban ks.
1
+2
+ 63
+2
1
1
198
2
189
7
76
40
7
75
39
5
+1
+1
+2
+64
+2
+60
+5
+8
-3
O th er ch a n g e s in c la s s ific a t io n ..........................
National banks succeeding state ban ks.............
State banks succeeding national ban k s.............
Admissions to F. R . S ystem .................................
W ithdrawals from F. R . S ystem .........................
C h a n g e s n o t in v o lv in g n u m b e r in a n y c la s s :
Suspended bank succeeded b y other bank in same class.
Other successions..............................................................
Absorptions of noninsured nondeposit financial institution
(not accom panied by establishment of additional bank
ing offices)............................................................................
Changes in title, location, or name of location................
Changes in corporate powers.................................................
Closed bank reopened............................................................
1
3
181
32
178
32
1
3
177
32
+61
+1
+ 60
-8
-2
+8
-1 4
3
185
32
1
1
1
+2
+2
43
+3
2
190
1
305
308
2
183
6
1
223
220
+3
-6
+3
-8
+ 14
115
32
-6 4
-2
-6 0
-2
+ 3
-3
+3
’ -3
C O R P O R A T IO N
198
189
7
6
528
528
INSURANCE
B a n k s b e g in n in g o p e r a t io n s .
N ew banks8................................
Banks added to count4.............
14,208
14,284
DEPOSIT
BANKS
N u m b e r o f b a n k s , D e c e m b e r 31, 1956.
N u m b e r o f b a n k s , D e c e m b e r 31, 1955.
FEDERAL
In
sured
Mutual savings banks
Noninsured
Insured
Total
o
Commercial and stock savings banks
and nondeposit trust companies
All banks
T yp e of change
co
BRANCHES
N u m b e r o f b r a n c h e s , D e c e m b e r 31, 1956.
N u m b e r o f b r a n c h e s , D e c e m b e r 31, 1955.
N e t c h a n g e d u r in g y ea r.
8,106
7,391
7,898
7,199
208
192
7,740
7,062
7,641
6,965
3,809
3,364
2,077
1,938
1,755
1,663
91
93
366
329
257
234
109
95
+699
+ 16
+678
+676
+445
+ 139
+92
+4
+37
+23
+ 14
754
728
26
716
711
162
38
17
21
168
133
3
4
168
168
168
416
16
96
7
554
7
530
7
516
7
513
38
•‘ 17‘
21
B ra n ch e s d is c o n t in u e d ...............................................................
Facilities..........................................................................................
Branches..........................................................................................
39
5
34
20
1
4
1
2
4
+2
38
5
33
-10
20
21
301
107
3
105
38
5
33
16
5
14
+ 3
+45
-3 3
+ 7
-7
1
2
+1
+2
-2
1
+ 10
1
1
1
”” 1
-7
‘ -12
-3
+ 7
+1
+2
-10
-7
•+7
‘ 1_7
414
403
+ 7
-1
DEPOSITS
+1
1
1
11
+37
1
1
51
-2 5
1
67
396
67
370
26
67
386
67
364
55
235
92
22,314
21,675
21,339
20,656
975
1,019
21,420
20,818
20,859
20,202
8,460
8,056
3,884
3,785
8,515
8,361
493
553
68
63
894
857
480
454
10
+683
-4 4
+602
+657
+404
+99
+ 154
-6 0
+ 5
+ 37
+26
876
41
15
26
838
818
107
711
445
29
416
168
205
72
133
14
13
6
2
38
17
754
835
107
728
4
' ' 38
•*17
O ffices c lo s e d .
Banks............
B ra n ch es.. . .
237
198
39
229
190
39
228
190
92
76
16
54
40
14
82
74
7
7
1
1
1
” 1
+67
+ 64
+3
+51
-1 5
+ 31
+ 64
-3 3
-6 7
-6 4
C h a n g e s in c la s s ific a t io n .
Am ong banks......................
Am ong branches................
122
+77
+ 67
+ 10
122
716
236
198
38
+6
+45
6
162
-6
1
—
3
+ 11
21
'' ’ 21
1
+ 10
+3
+ 7
-10
-3
-7
1 Includes 1 trust com pany member of the Federal Reserve System, December 31, 1956, and December 31, 1955.
2 Includes 3 mutual savings banks members of the Federal Reserve System, December 31, 1956, and December 81, 1955.
* Includes 3 cases in which a bank replaced an existing branch.
4 Banks opened prior to 1956 but not included in count as of December 31, 1955.
s Facilities established in or near military installations at request of the Treasury or Commanding Officer of the installation; includes 2 facilities in operation prior to be
ginning of year but not included in count as of December 31, 1955.
6 Branches opened prior to 1956 but not included in count as of December 31, 1955.
BANKS
+639
O ffices o p e n e d .
Banks..............
Branches.........
OPERATING
N et c h a n g e d u r in g y ea r.
OF
A L L B A N K IN G O FFICES
N u m b e r o f o ffic e s , D e c e m b e r 31, 1956.
N u m b e r o f o ffic e s , D e c e m b e r 31, 1955.
O F F IC E S , AND
+8
20
1
39
5
34
+ 10
O th e r c h a n g e s in cla ss ific a tio n a m o n g b r a n c h e s ...........
Branches of national banks succeeding branches of
State ban ks................................................................................
Branches of noninsured banks admitted to insurance........
Noninsured branches of insured banks becoming insu red ..
Branches of insured banks admitted to F. R . System
Branches of insured banks withdrawing from F . R.
S ystem .........................................................................................
Facility transferred as result of absorption or succession..
Branches transferred as result of absorption or succession..
C h a n g e s n o t in v o lv in g n u m b e r in a n y cla ss:
Facility succeeded b y a bra n ch................................................
Branches transferred as result of absorption or succession..
Changes in title, location, or name of location....................
20
NUM BER,
+715
B ra n ch e s o p e n e d f o r b u s in e s s .................................................
Facilities provided as agents of the government5.................
A bsorbed banks converted into branches..............................
Branches replacing head offices relocated or placed in
liquidation or receivership.....................................................
Other branches opened................................................................
Financial institution becoming a branch...............................
Branches added to count8..........................................................
T a b le
102.
N u m b e r o f O p e r a t i n g B a n k i n g O f f i c e s in t h e U n i t e d S t a t e s ( C o n t i n e n t a l U . S. a n d O t h e r A r e a s ) , D e c e m b e r 3 1 , 1 95 6
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE AND TYPE OF OFFICE
Commercial and stock savings banks
and nondeposit trust companies
All banks
Insured
State and type of bank or office
In
sured
N on
in su red
Noninsured
Members F . R .
System
Total
Total
National
Percentage insured1
State
N ot
mem
bers
F .R .S .
N on
Banks d e p o sit
of de
trust
com
posit
panies2
Total
In
N on
sured* insured
All
banks
of
deposit
Com
mercial
banks
of
deposit
21,420
13,680
11,792
1,888
7,740
20,859
13,218
11,856
1,862
7,641
8,460
4,651
8,958
698
3,809
3,884
1,807
1,U77
880
2,077
8,515
6,760
5,921
889
1,755
493
402
879
28
91
68
60
57
8
8
894
528
856
172
366
480
223
123
100
257
414
305
288
72
109
95.9
95.0
9U.9
95.U
97.5
97.7
97.0
96.8
98.8
98.8
C o n tin e n ta l U. S.— a ll o ffic e s ........
B anks.....................................................
Unit banks........................................
Banks operating branches..............
Branches...............................................
22,123
14,166
12,127
2,089
7,957
21,228
13,417
11,U71
1,91>6
7,811
895
749
656
98
146
21,230
13,639
11,772
1,867
7,591
20,748
13,194
11,8 U8
1,8U6
7,554
8,459
4,650
8,957
698
3,809
3,884
1,807
1,U77
880
2,077
8,405
6,737
5,91k
828
1,668
420
390
yn
19
30
62
-B
2
7
893
527
855
172
366
480
223
128
100
257
413
304
282
72
109
96.2
95.1
95.0
95.5
98.3
98.0
97.1
96.8
99.0
99.6
O th e r areas— a ll o ffic e s ...................
B anks.....................................................
XJnit banks........................................
Banks operating branches..............
Branches...............................................
191
42
21
21
149
111
24
8
16
87
80
18
18
5
62
190
41
20
21
149
111
24
8
16
87
1
1
1
110
23
7
16
87
73
12
8
U
61
6
5
U
1
1
1
1
1
60.0
64.9
1*7.1
80.0
58.8
60.3
66.7
50.0
80.0
58.8
A la b a m a — a ll o ff i c e s ..........................
B anks.....................................................
Unit banks........................................
Banks operating branches..............
B ranches...............................................
290
237
218
19
53
290
237
218
19
53
290
237
218
19
53
290
237
218
19
53
116
69
5h
15
47
30
25
22
8
5
144
143
1U2
1
1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
A rizo n a — a ll o ff ic e s ............................
B an ks.....................................................
Unit banks........................................
Banks operating branches..............
Branches........................................... ....
126
10
8
7
116
120
9
8
6
111
126
10
8
7
116
120
9
8
6
111
85
3
1
2
82
7
1
28
5
2
8
23
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
A rk a n sas— a ll o ffic e s ..........................
Banks ...................................................
Unit banks........................................
Banks operating branches..............
Branches...............................................
263
236
212
2U
27
258
231
207
2U
27
263
236
212
2U
27
25S
231
207
2U
27
..
58
54
50
b
4
98.5
98.3
98.1
100.0
100.0
98.5
98.3
98.1
100.0
100.0
1
1
1
S ta te
6
1
1
5
5
5
5
1
6
19
19
19
181
158
188
20
23
6
1
1
5
4
4
k
1
1
1
_
53.7
42.2
8U.6
58.1
70 *2
" 53.8
42.3
8U.6
58.1
70.2
C O R P O R A T IO N
975
767
669
98
208
INSURANCE
21,339
13,441
11,U79
1,962
7,898
DEPOSIT
Branches...............................................
22,314
14,208
12,1 US
2,060
8,106
U n ited S ta tes— a ll o f fic e s ................
B anks.....................................................
Mutual
savings
banks
FEDERAL
Total
Mutual savings banks
C a lifo rn ia — a ll o ff i c e s ........................
B anks.....................................................
Unit banks........................................
Banks operating branches..............
B ranches...............................................
1,443
1,434
9
1,443
1,434
1,029
233
139
85
5*
1,304
172
9
132
79
58
1,302
7
6
1
2
139
85
5*
1,304
132
79
53
1,302
49
30
19
980
33
18
15
200
50
81
19
122
7
6
1
2
C o lo r a d o — a ll o f fi c e s ..........................
B anks.....................................................
Unit banks........................................
Banks operating branches..............
Branches................................................
175
161
14
175
161
80
19
62
170
165
5
5
156
151
5
5
14
1*
14
92.0
170
165
5
5
156
151
5
5
77
7*
8
3
18
17
92.0
61
60
1
1
14
1*
91.8
91.5
100.0
91.8
91.5
100.0
312
211
101
214
204
93
56
166
116
50
146
9
1
98
7
91
95.8
85
50
35
119
38
23
15
55
7.1
76
68
13
25
95
60
85
119
67.8
90
58
87
121
55
13
9
42
34
23
11
22
9
9
1
1
71
56
15
27
5
3
2
2
66
53
13
25
54.5
*6.1
7*.0
82.9
90.4
8*.7
100.0
7.0
5.*
18.8
7.4
71
66
5
68
65
19
38
2
28
21
7
40
3
1
2
93.0
27
21
6
2
95.6
33.3
30
22
8
41
28
22
6
38
3
1
2
1
1
1
1
1
1
93.3
100.0
75.0
92.7
96.4
100.0
85.7
95.0
50.0
100.0
17
17
13
*
21
D is tr ic t o f C o lu m b ia — a ll o f f i c e s . .
B anks.....................................................
Unit banks........................................
Banks operating branches..............
Branches................................................
71
71
71
71
18
14
17
8
54
17
8
1*
54
17
8
1*
54
17
8
1*
J ?4
*
4
1
3
10
F lo rid a — a ll o f fic e s ..............................
B anks.....................................................
Unit banks........................................
Banks operating branches..............
B ranches...............................................
273
268
5
273
268
104
261
2*9
12
12
256
2**
12
12
5
5
261
2*9
12
12
256
2**
12
12
94
8*
10
10
8
2
38
39
8
1
7
31
6
1
13
1
1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
2
3
99.3
99.3
150
1*8
2
2
2
2
3
3
99.2
99.2
100.0
100.0
99.2
99.2
100.0
100.0
419
60
479
419
94
28
297
60
60
60
412
890
22
67
87.5
8 7.5
352
880
22
67
352
380
22
^ 67
52
*2
10
42
13
8
5
15
287
280
7
10
60
60
85.4
8*.6
100.0
100.0
85.4
8*.6
100.0
100.0
I d a h o — a ll o ffi c e s .................................
B anks.....................................................
Unit banks........................................
Banks operating branches..............
Branches...............................................
105
105
105
105
73
100.0
100.0
33
2*
9
72
33
2*
9
72
10
5
5
63
8
9
72
33
2*
9
72
12
20
33
15
18
2
5
100.0
100.0
100.0
100.0
100.0
100.0
I llin o is — a ll o ffic e s ..............................
Banks.....................................................
Unit banks........................................
Banks operating branches..............
Branches...............................................
932
926
6
932
926
397
928
92*
*
922
918
*
6
6
4
922
918
*
4
928
92*
*
4’
393
389
*
4 .
2*
4
6
2
4
128
128
128
100.0
100.0
401
3
3
99.7
99.7
401
*01
3
8
3
3
99.7
99.7
100.0
99.7
99.7
100.0
100.0
100.0
BANKS
479
412
890
22
67
OPERATING
152
OF
12
12
12
1
2
100.0
DEPOSITS
G e o rg ia — a ll o f f i c e s .............................
B anks.....................................................
Unit banks........................................
Banks operating branches..............
B ranches...............................................
1*
2
3
8
8
100.0
100.0
O F F IC E S , AND
D ela w a re— a ll o ffic e s ..........................
B anks.....................................................
Unit banks........................................
Banks operating branches..............
Branches...............................................
■
*
100.0
100.0
100.0
100.0
100.0
NUM BER,
C o n n e c t ic u t — a ll o ff ic e s ...................
B anks.....................................................
Unit banks........................................
Banks operating branches..............
Branches...............................................
1
1
100.0
100.0
100.0
100.0
CO
CO
T a b le 1 0 2 .
N u m b e r o f O p e r a t i n g B a n k i n g O f f i c e s in t h e U n i t e d S t a t e s ( C o n t i n e n t a l U . S. a n d O t h e r A r e a s ) , D e c e m b e r 3 1 , 1 9 5 6 — C o n t .
G RO U P ED AC C O R D IN G TO IN SU R A N C E STATUS AN D CLASS OF B A N K , AN D B Y ST A TE AN D T Y P E OF O FFIC E
Commercial and stock savings banks
and nondeposit trust companies
All banks
Insured
State and type of bank or office
In
sured
N on
insured
Total
National
State
N ot
mem
bers
F .R .S .
N on
Banks d e p o sit
of de
trust
posit
com
panies2
663
470
882
88
193
656
463
875
88
193
218
123
95
28
95
137
111
101
10
26
301
229
179
50
72
6
6
6
1
1
1
829
668
550
118
161
781
622
506
116
159
48
46
U
2
2
829
668
550
118
161
95
95
95
74
70
67
8
4
612
457
844
118
155
47
45
48
2
2
1
1
1
601
598
595
8
3
551
548
5U5
8
3
50
50
50
601
598
595
8
3
^781
622
506
116
159
'fcK-...
551
548
545
8
3
173
170
167
8
3
44
44
44
334
334
88U
461
365
819
46
96
448
352
806
46
96
13
13
18
461
365
819
46
96
448
352
806
46
96
133
89
74
15
44
42
20
lb
6
22
Unit banks
............................
Banks operating branches
. ..
"Rrannlipc!
. . .........
309
180
127
58
129
308
179
126
58
129
1
1
1
309
180
127
58
129
308
179
126
58
129
109
41
25
16
68
M s ln c — a ll o f f i c e s ..............................
Banks
.............................................
Unit b a n k s ......................................
Banks operating branches..............
Branches
...............
194
90
60
80
104
153
61
89
22
92
41
29
21
8
12
160
58
80
28
102
143
51
29
22
58
30
20
10
28
I ow a *~&11 o ffice s
........... ..
Unit banks
............................
Banks operating branches
Branches
•• •
RflH6&8— a ll o ffice s
............. ..
Unit banks
......
Banks operating branches
.
Branches
«• . . . .
K e n tu c k y — a ll o ffice s
.................
Unit banks
................................
Banks operating branches
...
Branches
........
L o u is ia n a — a ll o ffice s
...................
.M
*
All
banks
of
deposit
Com
mercial
banks
of
deposit
98.9
98.5
98.2
100.0
100.0
99.1
98.7
98.4
100.0
100.0
94.3
93.3
92.2
98.8
98.8
94.3
93.3
92.2
98.8
98.8
50
50
50
91.7
91.6
91.6
100.0
100.0
91.7
91.6
91.6
100.0
100.0
273
243
218
25
30
13
13
18
97.2
96.4
95.9
100.0
100.0
97.2
96.4
95.9
100.0
100.0
27
11
5
6
16
172
127
96
81
45
1
1
1
99.7
99.4
99.2
100.0
100.0
99.7
99.4
99.2
100.0
100.0
41
6
2
4
35
44
15
7
8
29
17
7
1
6
10
78.9
67.8
65.0
78.8
88.5
89.4
87.9
96.7
78.6
90.2
4
4
u
34
32
80
2
2
3
3
8
10
10
10
1
1
1
24
22
20
2
2
Mutual
savings
banks
75.0
75.0
75.0
C O R P O R A T IO N
8
8
8
In
N on
sured* insured
INSURANCE
659
466
878
88
193
Total
DEPOSIT
667
474
886
88
193
Banks operating branches
Branches
• ..................
Percentage insured1
Noninsured
Members F . R .
System
Total
^
FEDERAL
Total
Mutual savings banks
co
29.4
31.3
38.8
7
7
7
824
408
308
100
416
10
10
10
6
679
673
671
2
6
299
196
1U5
51
103
296
193
1U2
51
103
3
3
3
M is so u r i— a ll o ffi c e s ............
B anks......................................
Unit banks.........................
Banks operating branches
Branches................................
614
610
606
592
588
58U
U
4
22
22
22
M o n ta n a — a ll o ffic e s ...........
B an ks......................................
Unit banks.........................
Banks operating branches
Branches................................
114
114
m
113
113
113
N eb ra sk a — a ll o ffic e s ...........
B an ks......................................
Unit banks.........................
Banks operating branches
Branches................................
423
421
U19
2
384
382
380
2
2
N evad a— a ll o ffic e s ...............
B an ks......................................
Unit banks.........................
Banks operating branches
Branches................................
35
6
35
6
1
5
29
97.2
87.5
66.7
100.0
100.0
61.7
46.4
U .5
55.5
77.0
98.2
96.5
95.1
98.6
99.3
0.7
0.5
239
173
129
99.8
99.5
99.3
100.0
100.0
99.8
99.5
99.3
100.0
100.0
29
29
29
465
465
U65
98.7
98.7
98.7
100.0
100.0
98.7
98.7
98.7
100.0
100.0
40
27
19
8
13
13
7
6
243
159
117
99.0
98.5
97.9
100.0
100.0
99.0
98.5
97.9
100.0
100.0
592
588
58U
U
4
78
76
7U
2
2
101
97.0
97.0
97.0
100.0
100.0
97.0
97.0
97.0
100.0
100.0
114
114
in
113
113
113
40
40
uo
44
44
29
29
29
100.0
100.0
100.0
100.0
100.0
100.0
423
421
U19
2
2
384
382
S80
2
2
125
123
121
2
2
17
17
17
242
242
92.1
92.0
92.0
100.0
100.0
92.1
92.0
92.0
100.0
100.0
35
6
1
5
29
35
6
1
5
29
21
3
1
2
18
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
258
110
75
35
148
114
24
6
18
90
72
33
16
17
39
271
189
132
57
82
817
401
301
100
416
232
75
5U
21
157
346
153
118
35
193
688
682
680
2
6
678
672
670
2
6
184
178
176
2
6
299
196
1U5
51
103
296
193
U2
51
103
614
610
606
U
4
1
1
1
39
39
39
208
M a s sa ch u se tts — a ll o ffice s .
B anks......................................
Unit banks.........................
Banks operating branches
Branches4...............................
723
362
28 U
128
361
446
168
97
71
278
277
194
137
57
83
M ic h ig a n — a ll o ffic e s ..........
B an ks......................................
Unit banks.........................
Banks operating branches
Branches................................
824
408
308
100
416
817
401
301
100
416
M in n e s o t a — a ll o ffic e s ........
B anks......................................
Unit banks.........................
Banks operating branches
Branches................................
689
683
681
2
M ississip p i— a ll o f f i c e s . . . .
B an ks......................................
Unit banks.........................
Banks operating branches
Branches................................
5U
U
4
12
h
8
1
6
99
97
8
U2
84
413
413
U13
18
18
18
2
2
U
5
28
2
..
1
l
269
188
132
56
81
■
2
1
5
29
■-V-
'
33
33
33
1.8
1.2
100.0
100.0
100.0
OF
2
327
149
101
U8
DEPOSITS
35
7
3
5
28
330
150
101
U9
180
10U
O F F IC E S , AND
36
54
154
81
58
23
73
4
2
1
1
2
366
158
NUM BER,
99.1
99.3
100.0
98.0
98.9
BANKS
452
173
102
71
279
98.9
98.7
99.0
98.1
99.0
OPERATING
66
* 178
444
167
97
70
277
107
56
89
17
51
362
156
103
53
206
M a ry la n d — a ll o f fic e s .........
B anks......................................
Unit banks.........................
Bank* operating branches
Branches................................
CO
Ci
Table 102.
N u m b e r o f O p e r a t i n g B a n k i n g O f f i c e s in t h e U n i t e d S t a t e s ( C o n t i n e n t a l U . S. a n d O t h e r A r e a s ) , D e c e m b e r
31, 1956— Cont.
G RO U PED AC CO R D IN G TO IN SU R A N C E STATU S AN D CLASS O F B A N K , AN D B Y STATE AN D T Y P E OF O FFICE
Commercial and stock savings banks
and nondeposit trust companies
All banks
Insured
State and type of bank or office
In
sured
N on
in su red
Total
National State
In
N on
sured* insured
346
174
116
58
172
158
69
28
31
99
77
40
27
13
37
39
23
14
9
16
44
26
16
10
18
9
8
7
1
1
34
18
9
9
16
1,112
1,580
472
333
139
1.108
615
289
224
65
326
852
130
72
58
722
113
53
37
16
60
567
213
126
87
354
571
214
126
88
357
567
213
126
87
%354
116
47
24
23
69
55
6
2
4
49
175
149
131
18
180
154
136
18
26
175
149
131
18
26
38
38
38
3
2
1
1
1
2
2
2
N ew Jersey— a ll o f f i c e s .........
B anks........................................
Unit banks...........................
Banks operating branches.
Branches...................................
623
299
188
584
276
324
620
296
185
111
324
N ew M e x ico — a ll o f f i c e s . . . .
B anks........................................
Unit banks...........................
Banks operating branches.
Branches..................................
87
52
82
20
35
87
52
32
20
35
87
52
32
* 308
87
52
32
20
20
N ew Y o r k — a ll o f f i c e s ...........
B anks........................................
Unit banks...........................
Banks operating branches.
Branches4.................................
1,854
612
402
210
1,242
1,839
601
1,595
483
341
142
N o rth C a r o lin a — a ll o ffic e s .
Banks........................................
Unit banks...........................
Banks operating branches.
Branches..................................
571
214
126
88
357
N o r th D a k o ta — a ll o ffi c e s . .
B anks........................................
Unit banks...........................
Banks operating branches.
Branches..................................
180
154
136
18
26
3
SU
207
1,238
m
102
308
581
273
171
102
35
11
12
1
1
1
1
22
22
69.4
68.5
67.6
100.0
100.0
100.0
Com
mercial
banks
of
deposit
84.2
83.8
83.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.4
98.8
99.0
98.6
99.7
99.3
98.5
98.8
97.9
99.6
396
160
100
60
236
99.3
99.5
100.0
98.9
99.2
99.3
99.5
100.0
98.9
99.2
134
109
92
17
25
97.2
96.8
96.3
100.0
97.2
96.8
96.3
100.0
100.0
100.0
259
129
61
68
130
259
129
61
68
130
Mutual
savings
banks
37.1
35.3
33.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
C O R P O R A T IO N
13
11
34
34
SU
All
banks
of
deposit
INSURANCE
12
10
3
Total
1
1
1
64
62
60
3
111
N on
Banks d e p o sit
of de
trust
posit
com
panies2
51
50
49
1
1
76
74
72
77
74
71
3
N ot
mem
bers
F .R .S .
DEPOSIT
I ll
108
105
N ew H a m p s h ire — a ll o ffice s
B anks........................................
Unit banks. . . .....................
Banks operating branches.
Branches..................................
Percentage insured1
Noninsured
Members F . R .
System
Total
05
FEDERAL
Total
Mutual savings banks
CD
O h io — a l l o f f ic e s .....................
B an ks......................................
Unit banks.........................
Banks operating branches.
B ranches................................
O k la h o m a — a ll o f f ic e s .........
O r e g o n — a ll o ff ic e s ................
P e n n s y lv a n i a — a l l o f f ic e s . .
B anks......................................
Unit banks.........................
Banks operating branches.
Branches4...............................
Banks......................................
Unit banks.........................
Banks operating branches.
Branches.................................
S o u t h C a r o li n a — a l l o ffic e s
T e n n e s s e e — a ll o f f ic e s .........
B anks......................................
Unit banks.........................
Banks operating branches.
Branches................................
T e x a s — a l l o f f i c e s ...................
B anks......................................
Unit banks.........................
Banks operating branches.
Branches................................
349
166
134
32
183
268
220
181
39
48
2
2
2
392
386
380
6
6
384
378
372
6
6
8
8
8
392
386
380
6
6
384
378
372
6
201
197
193
4
4
25
25
25
158
156
154
2
2
7
7
7
1
1
1
203
52
41
11
151
201
50
39
11
151
2
2
2
202
51
40
11
151
200
49
38
11
JL51
149
12
10
2
137
10
1
1
1
1
1
1
1
1
1
1
3
41
30
22
8
11
1,371
799
636
163
572
1,354
785
624
161
569
17
14
12
2
3
1,330
792
633
159
538
1,313
778
621
157
535
832
510
411
99
322
239
91
62
29
148
242
177
148
29
65
14
11
9
2
3
3
3
3
108
18
7
11
90
103
14
4
10
89
5
4
3
1
1
83
10
3
7
73
80
8
2
6
.72
45
5
2
3
40
18
1
17
2
2
1
1
1
1
2
15
1
1
243
148
118
30
95
234
139
109
30
95
9
9
9
243
148
118
30
95
234
139
109
30
98
27
13
14
71
129
106
91
15
23
9
9
9
225
171
142
29
54
225
171
142
29
54
225
171
142
29
54
225
171
142
29
54
58
34
30
4
24
141
111
86
25
30
449
297
246
51
152
442
290
239
51
152
7
7
7
449
297
246
51
152
442
290
239
51
152
155
73
54
19
82
25
9
7
971
949
£26
23
22
939
917
894
23
22
32
32
32
971
949
926
23
22
939
917
894
23
22
471
452
432
20
19
130
127
124
3
3
6
95
7
6
2
16
99.8
99.7
99.6
100.0
100.0
98.2
98.2
98.2
100.0
100.0
98.2
98.2
98.2
100.0
100.0
1
1
1
99.5
98.0
97.5
100.0
100.0
99.5
98.0
97.1*
100.0
100.0
100.0
41
7
3
4
34
41
7
3
4
34
99.0
98.6
98.6
98.8
99.5
98.9
98.6
98.6
98.7
99.4
100.0
100.0
100.0
100.0
100.0
25
8
4
4
17
23
6
2
4
17
96.3
82.4
66.7
90.9
98.9
97.6
88.9
100.0
85.7
98.6
92.0
75.0
50.0
100.0
100.0
96.3
96.3
93.9
92.4
100.0
100.0
14
3
1
2
11
2
2
2
100.0
96.7
96.6
96.5
100.0
100.0
96.7
96.6
96.5
100.0
100.0
o
100.0
338
338
338
32
32
32
100.0
100.0
100.0
3
3
3
100.0
99.1
98.6
98.4
100.0
100.0
100.0
100.0
100.0
4
4
4
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
262
208
178
30
54
100.0
100.0
99.8
99.7
99.6
100.0
100.0
14
3
1
2
11
BANKS
B anks........................................
Unit banks.........................
Banks operating branches.
Branches................................
433
229
168
61
204
OPERATING
S o u t h D a k o ta — a ll o ffic e s . .
1,050
615
483
132
435
OF
Banks......................................
Unit banks.........................
Banks operating branches.
Branches................................
1,052
617
485
132
435
DEPOSITS
R h o d e I s la n d — a l l o f f i c e s . .
2
2
2
O F F IC E S , AND
B anks......................................
Unit banks.........................
Banks operating branches.
Branches4...............................
1,064
618
484
134
446
NUM BER,
B anks......................................
Unit banks..........................
Banks operating branches.
Branches................................
1,066
620
486
13 4
446
99.1
98.6
98.4
100.0
Table 102.
N u m b e r o f O p e r a t i n g B a n k i n g O f f i c e s in t h e U n i t e d S t a t e s ( C o n t i n e n t a l U . S. a n d O t h e r A r e a s ) , D e c e m b e r 3 1 , 1 9 5 6 — C o n t.
co
G RO U P ED AC C O R D IN G TO IN SU R A N C E STATU S AND CLASS OF B A N K , AN D B T ST A TE AN D T Y P E OF O FFIC E
Commercial and stock savings banks
and nondeposit trust companies
All banks
In
sured
N on
insured
Members F . R .
System
Total
Total
National State
N ot
mem
bers
F .R .S .
N on
Banks d e p o sit
of de
trust
com
posit
panies2
102
48
37
21
54
101
47
36
11
%. 54
!f T
43
7
6
1
36
26
14
8
6
12
32
26
22
u
6
94
68
56
12
26
93
67
55
12
26
1
1
1
77
61
51
10
16
76
60
50
10
16
40
34
30
-4
6
2
1
1
1
34
25
20
5
9
V irgin ia — a ll o ffice s
Banks
Unit banks
Banks operating branches
Branches
511
312
229
83
199
511
312
229
83
199
511
312
229
83
199
511
312
229
83
199
227
132
98
3U
95
116
71
56
15
45
168
109
75
3J,
59
W a s h in g to n — a ll o ffice s ...............
B anks.....................................................
Unit banks........................................
Banks operating branches..............
Branches4
.......................................
333
97
75
22
236
330
94
72
22
236
3
3
s
322
93
73
20
229
319
90
70
20
229
238
27
16
11
211
22
11
8
3
11
59
52
1>6
6
7
3
3
3
W e st V ir g in ia — a ll o ffice s . . . .
B anks.....................................................
Unit banks........................................
182
182
182
178
178
178
4
4
4
182
182
182
178
178
178
76
76
76
36
36
36
66
66
66
4
4
4
W isco n sin — a ll o ffic e s ........................
B anks.....................................................
Unit banks........................................
Banks operating branches
.
Branches
. . .
...............
705
555
U65
90
150
697
548
U59
89
149
8
7
6
1
1
701
551
U61
90
150
694
545
U56
89
^149- ~
no
95
91
L
15
76
69
65
\
7
508
381
300
81
127
4
3
2
1
1
Banks operating branches
Branches
..
V e r m o n t — a ll o ffice s
......................
Banks.....................................................
Unit banks........................................
Banks operating brandies
Branches...............................................
1
1
1
1
1
1
17
7
5
2
10
11
4
2
2
7
3
3
3
4
4
u
17
7
5
2
10
11
4
2
2
7
3
3
3
1
1
1
Com
mercial
banks
of
deposit
99.0
97.9
97.3
100.0
100.0
99.0
97.9
97.3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.1
96.9
96.0
100.0
100.0
99.1
96.8
95.9
100.0
100.0
97.8
97.8
97.8
97.8
97.8
97.8
99.3
99.3
99.U
98.9
99.3
99.4
99.5
99.6
98.9
99.3
Mutual
savings
banks
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
75.0
75.0
75.0
C O R P O R A T IO N
1
1
1
All
banks
of
deposit
INSURANCE
101
47
36
11
54
In
N on
sured* insured
DEPOSIT
102
48
37
11
54
Total
FEDERAL
Total
Percentage insured1
Noninsured
Insured
State and type of bank or office
Mutual savings banks
Wyoming—all offices...........
B anks........................................
Unit banks...........................
Banks operating branches.
Branches..................................
54
53
52
1
1
54
53
52
1
1
26
25
2U
1
1
15
15
15
13
13
IS
100.0
100.0
100 .0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Other area
Alaska— all offices5................
100.0
81.3
66.7
50.0
100.0
100.0
14.3
60.0
14.3
60.0
60.0
10.3
60.0
10.3
66.7
66.7
American Samoa—all offices.
B anks............................................
Unit banks...............................
Banks operating branches. . .
B ranches.......................................
Hawaii— all offices6...............
Banks........................................
Unit banks...........................
Banks operating branches.
Branches..................................
Mariana Islands— all offices.
DEPOSITS
B anks..........................................
Unit banks.............................
Banks operating branches. .
Branches4...................................
66.7
Panama Canal Zone— all offices.
Virgin Islands—all offices7.
90.9
70.0
66.7
71..4
94.0
80.0
66.7
100.0
100.0
100.0
100.0
100.0
100.0
1 N ondeposit trust companies are excluded in computing these percentages.
* Includes 1 trust com pany in Missouri member of the Federal Reserve System.
* Includes 3 banks members of the Federal Reserve System: 1 in Indiana and 2 in Wisconsin.
4 Includes branches operated b y banks located in other states or areas as follows: 1 noninsured branch in Massachusetts operated b y a N ew York bank; 2 insured branches in
N ew Y ork operated b y a Puerto R ico bank; 1 insured branch in Oregon operated by a California bank; 1 insured branch in Pennsylvania operated b y a N ew Jersey bank and 1 non
insured branch In Pennsylvania operated b y a N ew York bank; 2 insured branches in Washington operated b y a California bank; 2 insured branches and 1 noninsured branch in the
Mariana Islands operated b y a California bank; 4 noninsured branches in the Panama Canal Zone operated b y 2 New Y ork banks; and 12 insured branches in Puerto R ico operated
b y 2 N ew Y ork banks.
* Includes 6 insured national banks, not members of the Federal Reserve System.
* Includes, among noninsured banks, 1 national bank operating 22 branches.
7 Includes, among insured banks not members of the Federal Reserve System, 1 national bank operating 1 branch.
Back figures: See the Annual R eport for 1955, p p. 110-117, and earlier reports.
BANKS
B anks........................................
Unit banks...........................
Banks operating branches.
Branches...................................
90.9
70.0
66.7
71.U
94.0
OPERATING
B anks........................................
Unit banks...........................
Banks operating branches.
Branches4.................................
OF
B anks...................................................
Unit banks......................................
Banks operating branches............
Branches4............................................
Puerto Rico— all offices
O F F IC E S, AND
81.3
66.7
50.0
100.0
NUM BER,
B anks........................................
Unit banks...........................
Banks operating branches.
B ranches..................................
O
CO
Table 103,
N u m b e r a n d D e p o s i t s o f O p e r a t i n g B a n k s in t h e U n i t e d S t a t e s ( C o n t i n e n t a l U . S. a n d O t h e r A r e a s ) , D e c e m b e r 3 1 , 1 9 5 6
B A N K S G RO U P ED ACCO RD ING TO IN SU R AN CE STATU S AN D B Y D IS TR IC T AN D STATE
N um ber o f banks
F D IC District
and State
Commercial and stock savings
banks and nondeposit
trust companies
Deposits (in thousands of dollars)
Noninsured
All
banks1
Commercial and stock savings
banks and nondeposit
trust companies
M utual savings banks
All
banks
13,680
13,218
402
60
528
223
305
228,578,958
C o n t in e n t a l U. S . . 14,166
13,639
13,194
390
55
527
223
304
227,540,328
O th e r a re a s ............
42
41
24
12
5
1
1
1,038,630
F D IC D is tr ic t
District 1 ..................
District 22.................
District 3 ..................
D istrict 4 ..................
District 5 ..................
District 6 ...................
District 7 ..................
District 8 ...................
District 9 ........ ..........
District 10................
District 1 1 ................
District 123...............
812
954
1,419
1,031
1,106
1,508
1,437
1,596
1,122
1,628
1,191
404
471
799
1,409
1,023
1,106
1,508
1,429
1,596
1,121
1,628
1,191
399
433
781
1,393
1,008
1,038
1,461
1,409
1,544
1,105
1,517
1,157
372
35
11
13
15
65
39
11
48
14
104
33
14
3
7
3
341
155
10
8
41
153
10
7
300
2
8
6
2
1
1
5
5
S ta te
Alabama .................
Arizona
.................
A rkansas...................
California
...........
Colorado
...............
237
10
236
139
170
237
10
236
139
170
237
9
231
132
156
4
C onnecticut..............
Delaware ...............
District o f Columbia
Florida
...........
Georgia
.............
166
30
17
261
412
95
28
17
261
412
85
27
17
256
352
9
1
1
2
60
3
Idaho
...............
Illinois
...........
Ind iana......................
Io w a ...........................
.............
DigitizedKansas
for FRASER
33
928
474
668
598
33
928
470
668
598
33
922
463
622
548
3
6
45
50
3
1
1
1
1
1
7
14
71
2
4
5
1
3
66
1
1
Insured
N onin
sured
Total
198,547,224
196,507,125
2,040,099
197,508,786
195,947,227
1,561,559
1,038,438
559,898
478,540
192
17,351,403
64,680,033
25,007,837
11,418,765
8,886,633
11,479,078
16,144,219
18,650,196
5,851,022
7,876,430
14,585,834
26,647,508
9,317,072
45,799,116
23,071,464
10,906,274
8,886,633
11,479,078
16,068,334
18,650,196
5.594.888
7,876,430
14,585,834
26,311,905
9,075,745
45,207,466
23,022,636
10,760,032
8,851,183
11,438,684
16,043,515
18,529,536
5,466,011
7,780,603
14,498,219
25,833,495
241,327
591,650
48,828
146,242
35,450
40,394
24,819
120,660
128,877
95,827
87,615
478,410
8,034,331
18,880,917
1,936,373
512,491
1,723,344
854,139
1,059,262
19,651,272
1,642,437
1,723,344
854,139
1,059,262
19,651,272
1,642,437
1,723,344
848,736
1,056,528
19,651,217
1,636,207
5,403
2,734
55
6,230
4,260,365
748,454
1,408,888
3,685,899
2,434,226
2,273,919
624,771
1.408.888
3,685,899
2,434,226
2,243,347
619,010
1,408,888
3,674,168
2,420,018
555,667
15,923,672
4,342,056
2,726,524
2,081,744
555,667
15,923,672
4,286,954
2,726,524
2,081,744
555,667
15,884,180
4,281,092
2,645,356
2,025,562
T otal
30,572
5,761
Insured
Nonin
sured
30,031,734
22,885,564
7,146,170
30,031,542
22,885,564
7,145,978
DEPOSIT
3
8
9
4
2
7
1
13
N onin
sured
192
1,005,459
18,783,244
1,936,373
507,724
7,028,872
97,673
14,858
4,767
75,885
61,027
256,134
250,134
335,603
335,603
1,986,446
123,683
115,128
26,202
1,871,318
97,481
55,102
40,925
14,177
C O R P O R A T IO N
14,208
T o t a l U n ited
S ta t e s ...................
Total
In
sured
11,731
14,208
39,492
5,862
81,168
56,182
INSURANCE
T otal
In
sured
FEDERAL
N on
Banks d e p o s it
trust
of de
com
posit1
panies
Mutual savings banks
M ich igan...................
M innesota.................
M ississippi................
M issouri....................
M on ta n a ...................
408
683
196
610
114
408
682
196
610
114
401
672
193
588
113
2
9
3
18
N ebraska...................
N eva d a ......................
N ew H am pshire.. . .
N ew Jersey...............
N ew M e x ico.............
421
421
382
33
6
6
6
108
299
52
74
276
52
62
273
52
*12
N ew Y o r k ...........
N orth Carolina.
N orth D a k ota . .
O hio.....................
O klahom a...........
612
214
154
620
386
483
214
154
617
386
472
213
149
615
378
O regon...............
Pennsylvania. .
R hode Island . .
South Carolina.
South D a k ota ..
52
799
18
148
171
51
792
49
778
10
8
148
171
139
171
Tennessee.
T exas.........
U ta h ..........
V erm ont. .
Virginia. . .
297
949
48
312
297
949
48
61
312
W ashington___
W est V irgin ia ..
W iscon sin .........
W yom in g..........
97
182
555
53
93
182
551
53
10
10
7
1
1
1
3
34
23
12
23
7
1
5
2
7
4
129
129
3
3
1
11
1
9
1
3
1
1
7
8
1
7
6
290
917
47
60
312
4
32
1
3
90
178
545
53
5
1
22
1
188
4
1
6
22
1
1
7
7
3
4
3
4
4
3
4
3
6
1
2
5
2
1
3
1
1
2,093,839
2,785,974
919,990
2,693,737
9,711,722
2,093,839
2,785,974
584,140
2,181,246
4,944,853
2,082,143
2,785,178
538,200
2,076,782
4,855,817
11,696
796
45,940
104,464
89,036
7,907,625
3,882,213
1,043,164
5,590,897
729,524
7,907,625
3,626,079
1,043,164
5,590,897
729,524
7,895,070
3,615,728
1,033,653
5,571,364
729,524
12,555
10,351
9,511
19,533
1,502,206
307,786
790,608
7,218,329
573,130
1,502,206
307,786
360,177
6,118,940
573,130
1,473,287
307,786
309,441
6,118,919
573,130
28,919
56,322,049
2,486,788
650,355
10,485,857
2,305,622
38,664,396
2,486,788
650,355
10,161,715
2,305,622
1,844,419
14,521,980
1,224,958
864,258
588,930
335,850
512,491
4,766,869
60,383
507,724
116,109
256,134
256,134
50,736
21
430,431
1,099,389
248,193
1,099,389
38,120,113
2,463,192
531,829
10,157,859
2,301,126
544,283
23,596
118,526
3,856
4,496
17,657,653
17,657,653
324,142
324,142
1,814,768
12,909,749
830,900
864,258
588,930
1,805,304
12,864,777
805,857
859,291
588,930
9,464
44,972
25,043
4,967
29,651
1,612,231
394,058
29,651
1,612,231
344,969
2,735,080
10,372,591
844,743
443,760
2,818,407
2,735,080
10,372,591
844,743
323,083
2,818,407
2,728,649
10,291,175
844,488
323,083
2,818,407
6,431
81,416
255
120,677
120,677
2,796,192
1,146,687
3,894,538
344,421
2,490,240
1,146,687
3,873,755
344,421
2,458,559
1,133,472
3,867,353
344,421
31,681
13,215
6,402
305,952
305,952
20,783
20,102
166,631
144,987
1,857
435,216 ...........44,585
21,595
20,902
22,130
374,187 .........332,602
16,822
16,822
21,644
1,857
390,631
693
22,130
41,585
166,631
1,857
435,216
21,595
22,130
374,187
17,014
192
275,467
4,767
4,650,760
182,238
49,089
681
192
BANKS
O th e r area
A laska........................
American Sam oa. . .
H awaii.......................
Mariana Islands4. ..
Panama Canal Zone4
Puerto R ico4.............
Virgin Islands..........
68
32
8
189
OPERATING
13
1
7
1
6
OF
352
179
51
149
167
DEPOSITS
365
180
58
150
173
O F F IC E S, AND
365
180
90
158
362
NUM BER.
K e n tu ck y .........
Louisiana..........
M a in e ................
M a rylan d .........
Massachusetts.
1 Includes 20 noninsured banks of deposit (14 in Georgia, 2 in Iowa, and 4 in Texas) for which deposits are not available.
2 Includes Puerto R ico and the Virgin Islands.
* Includes Alaska, American Samoa, Hawaii, Mariana Islands, and the Panama Canal Zone.
4
Includes deposit data for the following branches of insured banks in continental United States: 2 insured branches and 1 noninsured branch in the Mariana Islands (2 insured in
Guam and 1 nonmsured in Saipan); 4 noninsured branches in the Panama Canal Zone; and 12 insured branches in Puerto R ico. Data for these branches are not included in the figures
for the States in which the parent banks are located.
Back figures: See the Annual R eport for 1955, pp. 118-119, and earlier reports.
A
ssets a n d
L ia b il it ie s
op
O p e r a t in g B a n k s
Table 106.
Assets and liabilities of operating banks in the United States (continental U. S.
and other areas), December 31, 1956
Banks grouped by district and State
Table 107.
Assets and liabilities of operating insured banks in the United States (continental
U. S. and other areas), December 31, 1956, June 30, 1956, and December 31, 1955
The data in these tables relate to banks operating in the United
States (continental U. S. and other areas). Data from the same tabu
lations for all operating banks in each State and other area are also
shown in the Corporation’s publication, “ Assets, Liabilities, and
Capital Accounts, Commercial and Mutual Savings Banks,” as follows:
For June 30, 1956
Report No. 45, pp. 4-5.
For December 31, 1956
Report No. 46, pp. 4-5.
CORPORATION
Assets and liabilities of operating banks in the United States (continental U. S.
and other areas), December 31, 1956
Banks grouped according to insurance status and type of bank
INSURANCE
Table 105.
DEPOSIT
Assets and liabilities of operating banks in the United States (continental U. S.
and other areas), June 30, 1956
Banks grouped according to insurance status and type of bank
FEDERAL
Table 104.
State banks members of the Federal Reserve System: Board of
Governors of the Federal Reserve System.
Other insured banks: Federal Deposit Insurance Corporation.
Noninsured banks: State banking authorities; and reports from
individual banks.
BANKS
National banks and State banks in the District of Columbia not
members of the Federal Reserve System: Office of the Comptroller of
the Currency.
OPERATING
Sources of data
OF
Asset and liability data for noninsured banks are tabulated from
reports pertaining to the individual banks. In a few cases these reports
are not as detailed as those submitted by insured banks, and some of
the items reported have been allocated to more detailed categories
according to the distribution of asset and liability data for insured
State banks not members of the Federal Reserve System or for other
noninsured banks.
L IA B IL IT IE S
Total deposits shown in these tables are not the same as the deposits
upon which assessments paid to the Federal Deposit Insurance Cor
poration are based. The assessment base is slightly lower due to certain
exclusions which are permitted and deductions which may be claimed.
AND
Individual loan items are reported gross instead of net of valuation
reserves. Accordingly, reserves for losses on loans are shown separately.
Instalment loans are ordinarily reported net if the instalment pay
ments are applied directly to the reduction of the loan. Such loans are
reported gross if, under contract, the payments do not immediately
reduce the unpaid balances of the loan but are assigned or pledged to
assure repayment at maturity.
ASSETS
Statements of assets and liabilities are submitted by insured com
mercial banks upon either a cash or an accrual basis, depending upon
the bank’s method of bookkeeping. Assets reported represent aggregate
book value, on the date of call, less valuation and premium reserves.
Assets and liabilities held in or administered by a savings, bond,
insurance, real estate, foreign, or any other department of a bank,
except a trust department, are consolidated with the respective assets
and liabilities of the commercial department. “ Deposits of individuals,
partnerships, and corporations” include trust funds deposited by a trust
department in a commercial or savings department. Other assets held
in trust are not included in statements of assets and liabilities.
In the case of banks with one or more domestic branches, the assets
and liabilities reported are consolidations of figures for the head office
and all domestic branches. In the case of a bank with foreign branches,
net amounts due from its own foreign branches are included in “ Other
assets,” and net amounts due to its own foreign branches are included
in “ Other liabilities.” Branches outside the continental United States
of insured banks in the United States are treated as separate entities
but as in the case of other branches are not included in the count of
banks. Data for such branches are not included in the figures for the
States in which the parent banks are located.
Demand balances with and demand deposits due to banks in the
United States, except private banks and American branches of foreign
banks, exclude reciprocal interbank deposits. Reciprocal interbank
deposits arise when two banks maintain deposit accounts with each
other.
Table 104.
A s s e t s a n d L i a b i l i t i e s o f O p e r a t i n g B a n k s in t h e U n i t e d S t a t e s ( C o n t i n e n t a l
U.
S. a n d O t h e r A r e a s ) , J u n e
30, 1956
BAN KS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BAN K
(Amounts in thousands of dollars)
O
Commercial and stock savings banks and
nondeposit trust companies
All banks
Mutual savings banks
Noninsured
Asset, liability, or capital account item
Total
239,266,752
Non
insured
171,578
32,421,114
24,271,224
8,149,890
378,676
43,790
29,691
1,584
25,287
156
1,551
1,113
738,890
80,585
1,313
399,955
229,495
178,246
28,748
285,680
6,499
5,143
37,564
917,136
109,333
1,313
530,415
233,554
Banks
of
deposit
228,523,563 10,743,189
206,845,638
204,252,339
2,421,721
586,613
74,122
42,214,582
2,276,039
18,232,470
10,529,397
43,712
66,299
11,066,665
Nondeposit
trust
com
panies1
43,540,085
2,430,746
18,233,783
11,370,779
283,921
72,993
11,147,863
42,953,472
2,356,624
18,233,783
10,929,352
273,207
66,299
11,094,207
441,427'
10,714
6,694
53,656
42,622,949
2,321,413
18,232,470
10,840,364
50,367
72,993
11,105,342
' 42,521
* 27,542
* 14,979
Securities— to ta l.................................................
U . S. Gov’t, obligations (incl. guaranteed). . .
Obligations of States and subdivisions...........
Other bonds, notes, and debentures...............
Corporate stocks................................................
85,887,610
65,166,354
13,656,028
5,893,554
1,171,674
80,780,531
61,577,967
13,286,433
5,161,811
754,320
5,107,079
3,588,387
369,595
731,743
417,354
73,460,574
56,869,065
12,988,620
3,123,363
479,526
72,126,538
55,941,475
12,730,551
3,020,182
434,330
1,236,307
878,950
232,299
99,571
25,487
97,729
48,640
25,770
3,610
19,709
12,427,036
8,297,289
667,408
2,770,191
692,148
8,653,993
5,636,492
555,882
2,141,629
319,990
3,773,043
2,660,797
111,526
628,562
372,158
Loans and discou nts, net— to ta l...................
Valuation reserves.................................................
Loans and discounts, gross— to ta l................
Real estate loans— total....................................
106,085,592
1,573,925
107,659,517
40,599,391
1 11 20
4,880,792
32,004
4,912,796
4,307,036
35,008
87,446,788
1,353,330
88,800,118
21,989,839
1,352,*92
86,691,019
1,350,060
88,041,079
21,753,420
1,332,527
731,471
3,222
734,693
220,627
19,135
24,298
48
24,346
15,792
830
18,638,804
220,595
18,859,399
18,609,552
58,712
14,513,781
191,861
14,705,642
14,538,935
*3,669
4,125,023
28,734
4,153,757
4,070,617
15,0*3
8,9*2,030
10,3*3,515
13,867,*29
6,035,213
666,451
2,695,693
1,786,769
101,204,800
1,541,921
102,746,721
36,292,355
1,376,196
4
8,383,*01
9,003,907
11,930,313
5,598,538
665,890
2,669,159
1,732,771
558,629
1,339,608
1,937,116
*36,675
561
26,534
53,998
* ,667,8*7
3,837,511
7,99*,9*9
*,137,0*0
666,451
2,695,693
1,756,221
*,61 *,3 *8
3,797,397
7,918,1*8
*,091,000
665,890
2,669,159
1,705,396
51,705
36,880
69,826
*3,081
561
26,534
46,241
1,79*
3,23*
6,975
2,959
*,27 *,183
6,506,00*
5,872,*80
1,898,173
3,769,053
5,206,510
*,012,165
1,507,538
505,130
1,299,*9*
1,860,315
390,635
4,584
30,548
27,375
3,173
598,801
3,676,842
36,374,877
18,613,151
2,647,542
585,732
3,622,212
36,135,955
18,433,491
2,609,156
13,069
54,630
238,922
179,660
38,386
598,801
3,675,102
36,331,449
18,449,978
2,636,584
585,732
3,620,612
36,096,938
18,342,631
2,601,301
13,069
54,321
233,497
105,895
33,948
169
1,014
1,452
1,335
1,740
43,428
163,173
10,958
1,600
39,017
90,860
7,855
140
4,411
72,313
3,103
3,753,465
2,009,687
181,045
1,562,733
3,584,760
1,948,237
166,086
1,470,437
168,705
61,450
14,959
92,296
3,315,327
1,821,676
176,325
1,317,326
3,220,200
1,801,907
164,452
1,253,841
75,267
13,640
4,768
56,859
19,860
6,129
7,105
6,626
438,138
188,011
4,720
245,407
364,560
146,330
1,634
216,596
73,578
41,681
3,086
28,811
Secured by farm land.........................................
Secured by residential properties:
Insured by F H A .............................................
Insured or guaranteed by V A ......................
Not insured or guaranteed by F H A or V A .
Secured by other properties...............................
Loans to banks..................................................
Loans to brokers and dealers in securities___
Other loans for carrying securities..................
Loans to farmers directly guaranteed by the
Commodity Credit Corporation..................
Other loans to farmers (excl. real estate). . . .
Commercial and industrial loans.....................
Other loans to individuals................................
All other loans (including overdrafts)............
M iscellaneous assets— t o t a l............................
Bank premises owned, furniture and fixtures.
Other real estate— direct and indirect............
All other miscellaneous assets..........................
,* , *
130,460
4,059
C O RPORATION
Cash, balances w ith other banks, and cash
collection item s— t o ta l.............................
Currency and coin.............................................
Reserve with F. R. banks (member banks). .
Demand balances with banks in U . S ..............
Other balances with banks in U . S ...................
Balances with banks in foreign countries. . . .
Cash items in process of collection..................
INSURANCE
Insured
Insured
DEPOSIT
Total
Total
Insured
FEDERAL
T otal assets..........................................................
Non
insured
239,266,752
228,523,563 10,743,189
206,845,638
204,252,339
2,421,721
171,578
32,421,114
24,271,224
8,149,890
B u sin e ss a n d p e rs o n a l d e p o s its — t o t a l .........
Deposits o f individuals, partnerships, and
corporations— dem an d .....................................
D eposits o f individuals, partnerships, and
corporations— tim e............................................
Certified and officers’ checks, cash letters of
credit and travelers’ checks outstanding,
and amounts due to Federal Reserve ban ks.
182,130,058
173,487,450
8,642,608
152,970,678
151,549,838
1,361,715
59,125
29,159,380
21,937,612
7,221.768
102,207,302
101,254,722
952,580
102,189,235
101,237,520
893,533
58,182
18,067
17,202
865
76,657,889
69,000,002
7,657,887
47,521,732
47,084,264
436,545
923
29,136,157
21,915,738
7,220,419
20
31,637
18,723,027
5,252,969
314,967
10,684,522
2,470,569
313,130
62,045
1,535
160,642
88,908
In te rb a n k a n d p o s t a l sa v in gs d e p o sits —
t o t a l .....................................................................
Banks in the United States— dem and.............
Banks in the United States— tim e ....................
Banks in foreign countries— dem and...............
Banks in foreign countries— tim e......................
Postal savings.........................................................
15,294,442
12,085,776
284,492
1,559,426
1,333,642
31,106
14,908,682
11,974,521
57,217
1,516,739
1,329,742
30,463
385,760
111,255
227,275
42,687
3,900
643
15,291,883
12,085,389
282,320
1,559,426
1,333,642
31,106
14,906,181
11,974,134
55,103
1,516,739
1,329,742
30,463
385,201
110,755
227,217
42,686
3,900
643
501
500
T o t a l d e p o s it s ..................................................
Demand............................................................
Tim e..................................................................
216,482,689
135,283,587
81,199,102
207,138,148
133,920,988
73,217,160
9,344,541
1,362,599
7,981,942
187,298,718
135,253,939
52,044,779
185,179,046
133,893,938
51,285,108
2,060,046
1,301,298
758,748
M is ce lla n e o u s lia b ilitie s — t o t a l ........................
Rediscounts and other borrowed m on ey .........
All other miscellaneous liabilities......................
3,872,760
365,908
3,506,852
3,693,961
342,193
3,351,768
178,799
23,715
155,084
3,520,279
363,795
3,156,484
3,442,620
341,843
3,100,777
T o t a l lia b ilitie s
(e x c lu d in g c a p ita l
a c c o u n t s ) .......................................................
220,355,449
210,832,109
9,523,340
190,818,997
C a p ita l a c c o u n t s — t o t a l .......................................
Preferred capital....................................................
Common stock ........................................................
Surplus......................................................................
Undivided profits and reserves..........................
18,911,303
69,340
4,828,659
9,655,712
4,357,592
17,691,454
47,967
4,709,676
9,047,694
3,886,117
1,219,849
21,373
118,983
608,018
471,475
16,026,641
69,340
4,828,659
7,630,199
3,498,443
Number of banks3..........................................................
14,247
13,449
798
13,719
5,156
4,672
484
22,032
3,194
330
2,844
15,664
18,989
2,305
15
2,484
14,185
3,043
889
315
360
1,479
2,559
387
2,172
2,501
387
2,114
58
59,626
58,703
923
29,183,971
29,648
29,154,323
21,959,102
27,050
21,932,052
7,224,869
2,598
7,222,271
64,470
17,627
46,843
13,189
4,325
8,864
352,481
2,113
350,368
251,341
350
250,991
101,140
1,763
99,377
188,621,666
2,124,516
72,815
29,536,452
22,210,443
7,326,009
15,630,673
47,967
4,709,676
7,496,145
3,376,885
297,205
21,373
82,627
100,140
93,065
98,763
2,060,781
(2)
823,881
36,856
33,914
28,493
2,884,662
(2)
2,025,513
859,149
1,551,549
509,232
473,964
349,917
13,229
431
59
528
220
308
58
1
BANKS
3,228,054
19,036,157
5,315,014
316,502
10,845,164
2,559,477
OPERATING
3,259,711
316,173
62,934
1,850
161,002
90,387
OF
32,141
18,742,016
5,255,274
314,982
10,687,006
2,484,754
LIABILITIES
3,232,726
19,058,189
5,318,208
316,832
10,848,008
2,575,141
AND
3,264,867
G o v e r n m e n t d e p o sits — t o t a l .............................
United States Government— dem and..............
United States Governm ent— tim e.....................
States and subdivisions— dem and.....................
States and subdivisions— tim e...........................
ASSETS
T o t a l lia b ilitie s a n d c a p ita l a c c o u n t s ...............
1 Amounts shown as deposits are special accounts and uninvested trust funds, with the latter classified as demand deposits of individuals, partnerships, and corporations.
2 N ot reported separately. Included with “ Undivided profits and reserves.”
* Includes 18 noninsured banks of deposit for which asset and liability data are not available.
Back figures: See the Annual R eport for 1955, pp. 122-123, and earlier reports.
h-*
0
01
Table 105.
A s s e t s a n d L i a b i l i t i e s o f O p e r a t i n g B a n k s in t h e U n i t e d S t a t e s ( C o n t i n e n t a l U . S . a n d O t h e r A r e a s ) , D e c e m b e r
31, 1956
BANKS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BANK
(Amounts in thousands of dollars)
Commercial and stock savings banks and
nondeposit trust companies
All banks
Mutual savings banks
Nonirisured
Asset, liability, or capital account item
Total
N on
insured
200,924
33,310,814
25,282,374
8,028,440
431,137
49,786
41,109
1,518
86,644
133
394
2,420 .........40,079
738,740
100,288
1,362
452,686
156,739
181,725
32,755
*329,906
3,743
4,996
42,706
920,465
133,043
1,362
586,803
159,178
241,427,659 10,537,668
218,654,513
216,145,285
2,308,304
48,444,022
3,270,129
18,705,986
12,483,040
46,133
59,533
13,879,201
251,965,327
C a s h , b a la n c e s w ith o t h e r b a n k s , a n d ca s h
c o lle c t io n ite m s — t o t a l ................................
Currency and co in .................................................
Reserve with F . R . banks (member b a n k s). .
Dem and balances with banks in U . S ..............
Other balances with banks in U . S ...................
Balances with banks in foreign countries. . . .
Cash items in process of collection...................
49,836,733
3,454,476
18,707,348
13,436,393
209,187
64,923
13,964,406
49,182,762
3,370,417
18,707,348
12,935,726
202,872
59,533
13,906,866
653,971
84,059
500,667
6,315
5,390
57,540
48,916,268
3,321,433
18,705,986
12,849,590
50,009
64,923
13,924,327
S e cu ritie s — t o t a l .....................................................
U . S. G ov’ t, obligations (incl. guaranteed). . .
Obligations of States and subdivisions............
Other bonds, notes, and debentures.................
Corporate stock s....................................................
87,351,869
66,795,281
13,636,697
5,722,921
1,196,970
82,575,679
63,475,833
13,278,368
5,033,225
788,253
4,776,190
3,319,448
358,329
689,696
408,717
75,188,766
58,824,259
12,967,747
2,904,296
492,464
73,947,336
57,957,686
12,716,647
2,829,373
443,630
1,127,523
810,373
220,947
72,978
23,225
113,907
56,200
30,153
1,945
25,609
12,163,103
7,971,022
668,950
2,818,625
704,506
8,628,343
5,518,147
561,721
2,203,852
344,623
3,534,760
2,452,875
107,229
614,773
359,883
L o a n s a n d d is c o u n t s , n e t — t o t a l .....................
Valuation reserves......................................................
L o a n s a n d d is c o u n t s , g ross— t o t a l .................
Real estate loans— to ta l.......................................
Secured by farm land.........................................
Secured by residential properties:
Insured by F H A .............................................
Insured or guaranteed by V A ......................
Not insured or guaranteed by F H A or V A .
Secured by other properties...............................
Loans to banks.......................................................
Loans to brokers and dealers in securities___
Other loans for carrying securities....................
Loans to farmers directly guaranteed b y the
C om m odity Credit C orporation ....................
Other loans to farmers (excl. real esta te). . . .
Commercial and industrial loans.......................
Other loans to individuals...................................
All other loans (including overdrafts)..............
110,632,011
1,784,587
112,416,598
42,464,321
1,391*,1*91*
105,684,643
1,755,896
107,440,539
38,052,575
1,360,569
4,947,368
28,691
4,976,059
4,411,746
33,925
90,854,600
1,565,435
92,420,035
22,718,943
1.335.828
90,142,790
1,561,775
91,704,565
22,484,310
1,317,065
686,687
3,609
690,296
219,914
17,91*7
25,123
51
25,174
14,719
816
19,777,411
219,152
19,996,563
19,745,378
58,666
15,541,853
194,121
15,735,974
15,568,265
1*3,501*
4,235,558
25,031
4,260,589
4,177,113
15,162
9,211,863
11,01*0,596
11*,1*51*,799
6,362,569
654,917
2,589,829
1,732,279
8,702,767
9,681,01*9
12,395,755
5,912,1*35
653,962
2,565,350
1,688,023
509,096
1,359,51*7
2,059,01*1*
1*50,131*
955
24,479
44,256
1*,802,559
3,901,801*
8,300,01*8
1*,378,701*
654,917
2.589.829
1,711,903
1*, 751,01*6
3,861*,225
8,220,892
1*,331,082
653,962
2,565,350
1,670,750
1*9,558
31*,907
72,728
U,771*
955
23,479
36,104
1,955
2,672
6,1*28
2,81*8
1*,1*09,301*
7,138,792
6,.151*,751
1,983,865
3,951,721
5,816,821*
1*,171,,863
1,581,853
1*57,588
1,321,968
1,979,888
1*02,512
1,000
5,049
20,376
17,273
3,103
883,115
3,298,012
38,965,031
19,115,948
2,713,146
864,426
3,252,853
38,744,361
18,931,432
2,687,557
18,689
45,159
220,670
184,516
25,589
883,115
3,296,289
38,923,180
18,940,165
2,701,694
864,426
3,251,264
38,706,798
18,828,502
2,679,203
18,689
44,883
215,032
110,003
21,237
142
1,350
1,660
1,254
1,723
41,851
175,783
11,452
1,589
37,563
102,930
8,354
134
4,288
72,853
3,098
M is ce lla n e o u s assets— t o t a l ...............................
Bank premises owned, furniture and fixtures.
Other real estate— direct and indirect.............
All other miscellaneous assets............................
4,144,714
2,111,378
194,396
1,838,940
3,984,575
2,045,666
179,122
1,759,787
160,139
65,712
15,274
79,153
3,694,879
1,914,346
187,969
1,592,564
3,611,137
1,893,536
176,073
1,541,528
62,957
13,758
4,668
44,531
20,785
7,052
7,228
6,505
449,835
197,032
6,427
246,376
373,438
152,130
3,049
218,259
76,397
44,902
3,378
28,117
*27,665
134,11*7*
2,439
1*2,414*
C ORPORATION
T o t a l a s s e t s ....................................................................
INSURANCE
N on
insured
Banks
of
deposit
DEPOSIT
Insured
Insured
FEDERAL
Nondeposit
trust
com
panies1
Total
Total
Insured
T o t a l lia b ilitie s a n d ca p ita l a c c o u n t s ...............
241,427,659 10,537,668
218,654,513
216,145,285
2,308,304
200,924
33,310,814
25,282,374
8,028,440
193,801,181
185,213,185
8,587,996
163,793,060
162,348,150
1,372,250
72,660
30,008,121
22,865,035
7,143,086
111,489,082
110,500,065
989,017
111,470,595
110,482,676
917,309
70,610
18,487
17,389
1,098
78,509,669
70,956,096
7,553,573
48,524,741
48,112,609
410,120
2,012
29,984,928
22,843,487
7,141,441
3,802,430
3,757,024
45,406
3,797,724
3,752,865
44,821
38
16,839,408
3,754,223
316,377
10,405,838
2,362,970
274,177
54,946
332
131,693
87,206
2,151
340
1,811
56
73,012
71,000
2,012
30,031,734
29,115
30,002,619
22,885,564
26,317
22,859,247
7,146,170
2,798
7,143,372
16,651
3,041
13,610
332,043
3,833
328,210
267,104
340
266,764
64,939
3,493
61,446
2,036,312
89,663
30,363,777
23,152,668
7,211,109
271,992
21.373
77.373
90,148
83,098
111,261
2,129,706
(2)
817,331
36,617
36,280
38,364
2,947,037
(2)
2,089,347
857,690
1,618,135
511,571
471,212
346,119
402
60
528
223
305
In t e r b a n k a n d p o s t a l sav in gs d e p o s its —
t o t a l .....................................................................
Banks in the United States— dem and.............
Banks in the United States— tim e ....................
Banks in foreign countries— dem and...............
Banks in foreign countries— tim e......................
Postal savings
...............................................
17,642,786
14,353,652
208,597
1,796,835
1,254,829
28,873
17,321,718
14,233,338
52,942
1,756,076
1,251,129
28,233
321,068
120,314
155,655
40,759
3,700
640
17,640,579
14,353,312
206,730
1,796,835
1,254,829
28,873
17,319,567
14,232,998
51,131
1,756,076
1,251,129
28,233
320,660
119,964
155,599
40,757
3,700
640
352
350
T o t a l d e p o s it s ..................................................
Demand............................................................
Tim e..................................................................
228,578,958
145,794,281
82,784,677
219,392,689
144,410,993
74,981,696
9,186,269
1,383,288
7,802,981
198,547,224
145,765,166
52,782,058
196,507,125
144,384,676
52,122,449
1,967,087
1,309,490
657,597
M isce lla n e o u s lia b ilitie s — t o t a l ........................
Rediscounts and other borrowed m o n e y .........
All other miscellaneous liabilities......................
4,035,917
88,202
3,947,715
3,885,102
63,671
3,821,431
150,815
24,531
126,284
3,703,874
84,369
3,619,505
3,617,998
63,331
3,554,667
69,225
17,997
51,228
T o ta l lia b ilitie s
(e x c lu d in g c a p ita l
a c c o u n t s ) .......................................................
232,614,875
223,277,791
9,337,084
202,251,098
200,125,123
Common stock
..................................................
Surplus......................................................................
Undivided profits and reserves..........................
19,350,452
68,596
4,938,987
9,975,791
4,367,078
18,149,868
47,223
4,824,997
9,378,151
3,899,497
1,200,584
21,373
113,990
597,640
467,581
16,403,415
68,596
4,938,987
7,886,444
3,509,388
16,020,162
47,223
4,824,997
7,760,016
3,387,926
Num ber of banks3..........................................................
14,208
13,441
767
13,680
13,218
C a p ita l a c c o u n t s — t o t a l .......................................
56
2
1 Amounts shown as deposits are special accounts and uninvested trust funds, with the latter classified as demand deposits of individuals, partnerships, and corporations.
* N ot reported separately. Included with “ Undivided profits and reserves.”
* Includes 20 noninsured banks of deposit for which asset and liability data are not available.
Back figures, 1934-1955: See the preceding table and the Annual Report for 1955, pp. 124-125, and earlier reports.
BANKS
2,207
340
1,867
277,205
55,807
409
131,985
89,004
OPERATING
547
3,028
861
77
292
1,798
16,857,786
3,756,745
316,386
10,407,745
2,376,910
OF
4,159
18,378
2,522
9
1,907
13,940
17,134,991
3,812,552
316,795
10,539,730
2,465,914
LIABILITIES
4,706
21,406
3,383
86
2,199
15,738
G o v e r n m e n t d e p o sits — t o t a l .............................
United States Government— dem and..............
United States Governm ent— tim e.....................
States and subdivisions— dem and.....................
States and subdivisions— tim e...........................
17,113,585
3,809,169
316,709
10,537,531
2,450,176
AND
251,965,327
ASSETS
B u sin e ss a n d p e rs o n a l d e p o s its — t o t a l .........
Deposits of individuals, partnerships, and
corporations— dem and.....................................
Deposits of individuals, partnerships, and
corporations— tim e............................................
Certified and officers’ checks, cash letters of
credit and travelers’ checks outstanding,
and amounts due to Federal Reserve ban ks.
1—4
O
Table 106.
A s s e t s a n d L i a b i l i t i e s o f O p e r a t i n g B a n k s in t h e U n it e d S t a t e s ( C o n t i n e n t a l U .
S.
a n d O t h e r A re a s ), D e c e m b e r
31, 1956
BANKS GROUPED BY DISTRICT AND STATE
O
(Amounts in thousands of dollars)
00
Assets
F D IC District
and State
N um
ber of
banks1
Liabilities and capital accounts
Deposits
U . S. G ov
ernment
obligations
Other
securities
Loans, dis
counts, and
overdrafts
Miscel
laneous
T otal
Business
and
personal2
Govern
m ent8
Inter
bank4
Miscel
laneous
liabilities
Total
capital
accounts
66,795,281
20,556,588 110,632,011
4,144,714
251,965,327
193,801,181
17,134,991
17,642,786
4,035,917
19,350,452
49,639,720
66,520,890
20,461,425 110,075,729
4,066,095
250,763,859
193,029,552
16,887,777
17,622,999
3,975,218
19,248,313
42
197,013
274,391
95,163
556,282
78,619
1,201,468
771,629
247,214
19,787
60,699
102,139
812
954
1,419
1,031
1,106
1,508
1,437
1,596
2,385,010
12,470,521
5,402,507
2,783,553
2,408,083
3,274,921
3,363,517
4,332,156
1,252,463
2,173,886
4,615,949
5,374,167
5,348,047
15,460,006
7,411,083
3,761,164
2,763,580
3,473,733
6,204,070
6,586,661
1,918,478
2,598,284
3,946,835
7,323,340
1,908,477
5,806,247
2,740,535
987,382
793,129
877,485
1,295,187
1,706,025
576,722
720,527
1.034.436
2.110.436
9,480,412
37,306,958
11,660,547
4,786,938
3,553,415
4,754,902
6,386,606
7,477,091
2,548,462
3,000,303
5,881,417
13,794,960
263,130
1,578,458
390,094
213,922
152,168
133,429
199,657
155,066
67,910
85,664
349,330
555,886
19,385,076
72,622,190
27,604,766
12,532,959
9,670,375
12,514,470
17,449,037
20,256,999
6,364,035
8,578,664
15,827,967
29,158,789
16,111,592
55,379,094
22,257,277
9,507,706
6,993,205
8,925,694
14,155,911
15,549,085
4,804,684
6,202,863
10,852,308
23,061,762
704,555
2,781,130
1,550,685
1,058,519
1,112,518
1,020,711
1,417,141
1,452,893
626,525
1,025,506
1,831,362
2,553,446
535,256
6,519,809
1,199,875
852,540
780,910
1,532,673
571,167
1,648,218
419,813
648,061
1,902,164
1,032,300
250,429
1,880,805
305,585
151,977
91,271
120,749
164,095
163,737
58,470
53,789
176,755
618,255
1,783,244
6,061,352
2,291,344
962,217
692,471
914,643
1,140,723
1,443,066
454,543
648,445
1,065,378
1,893,026
236
139
170
463,812
189,341
296,164
3,929,461
439,292
521,240
211,322
324,119
5,237,545
547,517
196,253
70,516
130,206
1,530,143
78,611
678,244
432,328
391,872
10,450,564
702,738
24,445
29,135
12,631
406,183
18,744
1,883,994
932,642
1,154,992
21,553,896
1,786,902
1,411,928
717,390
888,776
17,099,128
1,382,875
216,333
117,073
96,603
1,705,230
137,218
95,083
19,676
73,883
846,914
122,344
18,219
15,733
4,361
527,613
18,657
142,431
62,770
91,369
1,375,011
125,808
C onnecticu t..............
D elaware...................
District of Columbia
F lorida.......................
G eorgia......................
166
30
17
261
412
568,225
133,171
355,493
996,779
679,832
1,331,983
233,502
459,533
1,290,212
654,960
603,708
115,940
61,552
272,633
160,106
2,138,153
344,906
631,394
1,347,930
1,141,080
64.984
11,291
27.937
71,155
41,436
4,707,053
838,810
1,535,909
3,978,709
2,677,414
4,059,622
680,617
1,263,834
2,890,041
1,877,785
148,185
60,774
47,055
460,971
280,096
52,558
7,063
97,999
334,887
276,345
46,105
8,156
16,475
36,831
31,194
400,583
82,200
110,546
255,979
211,994
Id a h o ..........................
Illinois........................
Indiana......................
Io w a ...........................
Kansas.......................
928
474
668
598
106,756
3,762,929
1,011,906
569,227
539,291
199,150
5,648,567
1,793,390
938,094
699,668
27,115
1,444,721
271,163
261,304
258,312
251,756
6,293,679
1,565,662
1,183,412
746,048
7,892
133,081
47,541
21.985
17.938
592,669
17,282,977
4,689,662
2,974,022
2,261,257
470,374
13,262,646
3,720,152
2,286,439
1,539,048
78,026
1,151,519
470,434
301,374
427,879
7,267
1,509,507
151,470
138,711
114,817
4,079
155,665
37,509
8,072
8,976
32,923
1,203,640
310,097
239,426
170,537
O th e r a r e a s ............
F D IC D is tr ic t
D istrict 1 ...................
District 25.................
District 3 ..................
District 4 ..................
District 5 ...................
District 6 ..................
District 7 ..................
District 8 ..................
District 9 ...................
District 10................
District 11................
District 126...............
S ta te
A labam a....................
A rizona......................
Arkansas...................
C alifornia..................
C olorad o....................
1,122
1,628
1,191
404
237
10
CORPORATION
49,836,733
14,166
INSURANCE
14,208
C o n t in e n t a l U. S . .
DEPOSIT
T o t a l U n ited S ta tes.
FEDERAL
Cash and
due from
banks
831,255
967,459
454,602
1,074,347
5,474,182
18,589
40,324
13,401
70,646
149,738
2,283,964
2,992,126
1,031,292
2,942,229
10,907,639
1,707,472
1,918,091
862,222
2,337,916
8,862,414
170,695
529,750
45,915
220,452
406,587
215,672
338,133
11,853
135,369
442,721
15,249
24,285
9,494
24,592
164,780
174,876
181,867
101,808
223,900
1,031,137
M ich igan.......................
M innesota.....................
M ississippi....................
M issouri.........................
M on ta n a ........................
408
683
196
610
114
1,513,471
861,550
267,660
1,590,063
164,893
2,981,204
1,129,127
297,168
1,706,965
263,187
708,651
387,121
164,137
431,558
65,001
3,251,862
1,813,847
386,161
2,307,191
275,286
107,939
45,365
15,132
53,539
9,510
8,563,127
4,237,010
1,130,258
6,089,316
777,877
6,939,352
3,191,706
813,451
4,245,354
611,522
720,107
328,308
155,118
490,082
86,237
248,166
362,199
74,595
855,461
31,765
106,351
43,420
5,027
62,764
7,220
549,151
311,377
82,067
435,655
41,133
N ebraska.......................
N e v a d a ..........................
N ew H ampshire...........
New Jersey...................
N ew M e x ico.................
421
6
108
299
52
401,838
50,298
89,706
1,208,213
159,845
530,099
117,911
247,831
2,266,070
216,854
130,581
18,285
86,393
990,667
23,084
564,233
138,423
461,176
3,257,005
201,171
14,010
6,760
9,554
118,008
8,668
1,640,761
331,677
894,660
7,839,963
609,622
1,195,401
255,349
746,692
6,633,549
427,424
146,742
50,398
31,791
491,942
130,870
160,063
2,039
12,125
92,838
14,836
8,752
3,973
9,680
72,511
3,646
129,803
19,918
94,372
549,123
32,846
N ew Y o r k .....................
N orth Carolina............
N orth D a k ota ..............
O h io................................
O klahom a......................
612
214
154
620
386
11,070,660
688,075
107,245
2,346,572
705,518
12,883,934
659,675
282,143
3,491,053
678,377
4,650,636
291,657
83,673
830,355
231,926
33,427,221
1,074,895
229,187
4,575,785
870,091
1,413,207
39,842
6,882
139,700
31,090
63,445,658
2,754,144
709,130
11,383,465
2,517,002
47,785,258
1,924,161
502,523
9,208,151
1,809,920
2,124,792
256,077
134,946
864,268
256,894
6,411,999
306,550
12,886
413,438
238,808
1,745,228
58,556
4,243
114,175
15,192
5,378,381
208,800
54,532
783,433
196,188
O regon............................
Pennsylvania................
R hode Island ...............
South Carolina.............
South D a k ota ...............
52
799
18
148
171
341,111
3,055,935
162,134
234,049
118,775
578,612
3,920,030
333,684
283,760
244,021
188,889
1,910,180
163,911
93,467
40,927
880,912
7,084,762
673,811
320,889
230,142
35,166
250,394
19,135
11,314
6,153
2,024,690
16,221,301
1,352,675
943,479
640,018
1,585,169
13,049,126
1,159,278
711,491
498,933
230,473
686,417
51,921
124,569
77,034
28,777
786,437
13,761
28,198
12,963
34,876
191,410
16,708
7,246
3,587
145,395
1,507,911
111,009
71,975
47,501
Tennessee......................
Texas..............................
U ta h ...............................
V erm on t........................
Virginia..........................
297
949
48
68
312
782,821
3,438,115
204,287
59,816
679,277
724,522
2,622,445
243,256
113,443
872,384
205,601
681,355
50,563
33,692
213,750
1,224,584
4,280,459
399,979
278,488
1,264,382
48,670
271,203
12,239
6,318
49,170
2,986,198
11,293,577
910,324
491,757
3,078,963
2,084,092
7,789,403
680,239
421,366
2,295,859
263,331
1,053,669
121,354
20,156
291,865
387,657
1,529,519
43,150
2,238
230,683
38,375
133,091
9,846
3,662
32,399
212,743
787,895
55,735
44,335
228,157
W ashington...................
W est Virginia...............
W isconsin......................
W yom in g.......................
97
182
555
53
603,718
288,278
838,140
87,947
748,975
478,937
1,429,476
142,623
249,282
74,976
315,373
21,097
1,394,870
421,031
1,569,082
117,193
44,979
15,013
44,177
3,882
3,041,824
1,278,235
4,196,248
372,742
2,479,544
974,445
3,496,407
275,619
224,373
118,501
226,600
56,773
92,275
53,741
171,531
12,029
32,079
12,709
20,235
2 ,2 12
213,553
118,839
281,475
26,109
18
1
10
36,292
336
96,587
1,244
4,077
55,865
2,612
70,336
1,482
124,938
15,033
31,126
176,598
2,061
481,048
21,870
22,132
479,417
18,342
114,929
917
353,999
12 ,0 2 1
10,093
269,868
9,802
49,600
900
72,136
9,574
11,382
96,418
7,204
727
21
4,764
275
2
54,569
341
9,240
183
41,068
48,996
8
2,871
27
11,545
12,868
15,356
35,782
170
2 ,10 2
40
9,081
1,135
67,093
9,407
52,066
216
216,852
7,758
1.564
271,681
6,145
O th e r area
A laska............................
American S am oa.........
H aw aii............................
Mariana Islands7.........
Panama Canal Zon e7
Puerto R ico 7.................
Virgin Islands...............
10
3
655
7,901
8
50,661
987
1 Includes 20 noninsured banks of deposit (14 in Georgia, 2 in Iow a, and 4 in Texas) for which asset, liability, and capital account data are not available.
2 Dem and and time deposits of individuals, partnerships, and corporations, certified and officers* checks, cash letters o f credit, etc.
3 Deposits of the United States Governm ent and of States and subdivisions.
< Interbank deposits and postal savings deposits.
5 Includes Puerto R ico and the Virgin Islands.
6 Includes Alaska, American Sam oa, Hawaii, Mariana Islands, and the Panama Canal Zone.
7 Includes asset and liability data for the following branches of insured banks in continental United States: 2 insured branches and 1 noninsured branch in the Mariana Islands
(2 insured in Guam and 1 noninsured in Saipan); 4 noninsured branches in the Panama Canal Zone; and 12 insured branches in Puerto R ico. Data for these branches are not included
in the figures for the States in which the parent banks are located.
Back figures, 19U5-1955: See the Annual R eport for 1955, pp. 126-127, and earlier reports.
BANKS
110 ,12 0
259,481
128,686
251,980
892,087
OF OPERATING
718,127
896,214
307,229
1,006,875
3,013,877
LIABILITIES
605,873
828,648
127,374
538,381
1,377,755
AND
365
180
90
158
362
ASSETS
K e n tu ck y ......................
Louisiana.......................
M a in e.............................
M arylan d......................
Massachusetts..............
Table 107.
A sse ts an d
L ia b ilitie s
o f O p e r a t in g I n s u r e d B a n k s in t h e U n it e d S t a t e s ( C o n t in e n t a l U . S. a n d O t h e r A r e a s ),
D e c e m b e r 31, 1956, J u n e 30, 1956, a n d D e c e m b e r 31, 1955
(Amounts in thousands of dollars)
Insured commercial banks1
All insured banks
D ec. 31,
1956
June 30,
1956
D ec. 31,
1955
D ec. 31,
1956
June 30,
1956
D ec. 31,
1955
241,427,659
228,523,563
232,602,859
216,145,285
204,252,339
209,144,779
25,282,374
24,271,224
23,458,080
49,182,762
3,370,417
18,707,348
42,953,472
2,356,624
18,233,783
47,345,333
2,784,624
18,722,421
48,444,022
3,270,129
18,705,986
42,214,582
2,276,039
18,232,470
46,559,853
2,683,954
18,721,112
738,740
100,288
1,362
738,890
80,585
1,313
785.480
100,670
1,309
12,935,726
202,872
59,533
13,906,866
10,929,352
273,207
66,299
11,094,207
12,164,941
266,079
98,017
13,309,251
12,483,040
46,133
59,533
13,879,201
10,529,397
43,712
66,299
11,066,665
11,732,460
45,208
98,017
13,279,102
452,686
156,739
399,955
229,495
432.481
220,871
27,665’
27,542
.........30,149
Obligations of the U. S. Government, direct and
guaranteed— total..................................................
63,475,833
61,577,967
66,734,713
57,957,686
55,941,475
60,876,637
5,518,147
5,636,492
5,858,076
Direct:
Treasury bills...................................................................
Treasury certificates of indebtedness........................
Treasury n otes................................................................
United States non-marketable bond s........................
Other bonds maturing in 5 years or less..................
Other bonds maturing in 5 to 10 years ..................
Other bonds maturing in 10 to 20 yea rs ................
Other bonds maturing after 20 years ......................
Guaranteed obligations (F H A debentures) ................
5,877,173
1,997,447
11,919,792
2,985,290
21,198,173
11,492,502
7,506,976
462,439
36,041
2,822,811
1,232,505
12,766,505
3,169,157
12,704,985
20,978,564
7,322,315
553,246
27,879
4,212,896
2,322,688
14,072,973
3,696,038
13,107,027
21,488,954
7,208,743
605,712
19,682
5,779,261
1,985,124
11,746,396
1,882,908
20,677,142
11,007,207
4,683,793
183,104
12,751
2,760,305
1,228,368
12,574,427
2,033,497
12,533,246
20,047,935
4,566,726
183,640
13,331
4,112,240
2,295,833
13,878,904
2,493,775
12,908,772
20,529,312
4,364,924
282,548
10,329
97,912
12,323
173,396
1,102,382
521,031
485,295
2,823,183
279,335
23,290
62,506
4,137
192,078
1,135,660
171,739
930,629
2,755,589
369,606
14,548
100,656
26,855
194,069
1,202,263
198,255
959,642
2,843,819
323,164
9,353
Obligations of States and subdivisions.........................
Other bonds, notes, and debentures..............................
Federal Reserve bank stock .............................................
Other corporate stock s......................................................
19,099,846
13,278,368
5,033,225
325,564
462,689
19,202,564
13,286,433
5,161,811
315,765
438,555
19,273,939
13,034,895
5,517,344
302,678
419,022
15,989,650
12,716,647
2,829,373
325,489
118,141
16,185,063
12,730,551
3,020,182
315,692
118,638
16,363,782
12,500,910
3,441,695
302,608
118,569
3,110,196
561,721
2,203,852
75
344,548
3,017,501
555,882
2,141,629
73
319,917
2,910,157
533,985
2,075,649
70
300,453
Total securities......................................................
82,575,679
80,780,531
86,008,652
73,947,336
72,126,538
77,240,419
8,628,343
8,653,993
8,768,233
Total assets..........................................................................
Cash, balances with other banks, and cash col
lection items— total...............................................
Currency and co in ..............................................................
Reserve with Federal Reserve banks (member banks)
Dem and balances with banks in the United States
(except private banks and American branches
of foreign ban k s)........................................................
Other balances with banks in the United States . . . .
Balances with banks in foreign countries....................
Cash items in process of collection................................
Other securities— total.................................................
CORPORATION
Dec. 31,
1955
INSURANCE
June 30,
1956
DEPOSIT
D ec. 31,
1956
FEDERAL
Assets
Insured mutual savings banks
82,360,421
1,267,677
83,628,098
20,767,275
1,278,753
15,541,853
194,121
15,735,974
15,568,265
43,504
14,513,781
191,861
14,705,642
14,538,935
43,669
13,562,994
189,570
13,752,564
13,608,636
43,825
8,383,401
9,003,907
11,980,313
5,598,538
665,890
2,669,159
1,732,771
8,178,227
8,217,482
11,419,564
5,238,060
572,826
3,229,525
1,759,572
4,751,046
3,864,225
8,220,892
4,331,082
653,962
2,565,350
1,670,750
4,614,848
3,797,397
7,918,148
4,091,000
665,890
2,669,159
1,705,396
4,506,346
3,670,740
7,538,257
3,773,179
572,826
3,229,525
1,744,381
8,951,721
5,816,824
4,174,863
1,581,353
3,769,058
5,206,510
4,012,165
1,507,538
3.671.881
4,546,742
3,881,307
1.464.881
17,273
27,375
15,191
585,732
3,622,212
1,146,742
3,266,323
864,426
3,251,264
585,732
3,620,612
1,146,742
3,264,723
1,589
1,600
1,600
36,135,955
18,433,491
2,609,156
33,238,262
17,237,082
2,554,419
38,706,798
18,828,502
2,679,203
36,096,938
18,342,631
2,601,301
33,209,723
17,159,640
2,533,263
37,563
102,930
8,354
39,017
90,860
7,855
28,539
77,442
21,156
188,260,322
181,985,331
181,932,067
164,090,126
158,817,557
159,600,840
24,170,196
23,167,774
22,331,227
Bank premises, furniture and fixtures, and other
real estate— total....................................................
Bank premises...............................................................
Furniture and fixtures..................................................
Real estate owned other than bank premises............
Investments and other assets indirectly representing
bank premises or other real estate..........................
2,224,788
1,628,899
416,767
51,304
2,114,323
1,556,430
391,807
45,120
1,994,795
1,480,921
358,062
37,731
2,069,609
1,485,716
407,820
48,255
1,966,359
1,418,030
383,877
43,486
1,854,168
1,349,122
350,914
36,051
155,179
143,183
8,947
3,049
147,964
138,400
7,930
1,634
140,627
131,799
7,148
1,680
127,818
120,966
118,081
127,818
120,966
118,081
Miscellaneous assets— total........................................
Customers’ liability on acceptances outstanding. . . .
Income accrued but not collected...............................
Prepaid expenses...........................................................
Other assets...................................................................
1,759,787
709,090
512,890
65,859
471,948
1,470,437
487,918
500,806
84,318
397,395
1,330,664
426,937
487,055
61,016
355,656
1,541,528
709,090
412,953
60,111
359,374
1,253,841
487,918
403,414
76,660
285,849
1,129,918
426,937
394,103
55,739
253,139
218,259
216,596
200,746
99,937
5,748
112,574
97,392
7,658
111,546
92,952
5,277
102,517
20.4%
26.3
7.9
43.8
1.6
7.5
18.8%
26.9
8.4
44.3
1.6
7.7
20.4%
28.7
8.3
41.2
1.4
7.3
22.4%
26.8
7.4
41.7
1.7
7.4
20.7%
27.4
7.9
42.4
1.6
7.7
22.3%
29.1
7.8
39.4
1.4
7.2
2 .9 %
2 1.8
12.3
61.5
1.5
8.4
3.1%
23.2
12.4
59.8
1.5
8.5
3.3%
25.0
12.4
57.8
1.5
8.6
T o t a l lo a n s a n d s e c u r it ie s ......................................
RATIOS
Percentages of total assets:
Cash and balances with other banks..........................
U. S. Government obligations, direct and guaranteed
Other securities..............................................................
Loans and discounts.....................................................
Other assets...................................................................
Total capital accounts..................................................
BANKS
86,691,019
1,350,060
88,041,079
21,753,420
1,332,527
OF OPERATING
90,142,790
1,561,775
91,704,565
22,484,310
1,317,065
LIABILITIES
95,923,415
1,457,247
97,380,662
34,375,911
1,322,578
AND
101,204,800
1,541,921
102,746,721
36,292,355
1,876,196
ASSETS
L o a n s a n d d is c o u n t s , n e t — t o t a l .................................. 105,684,643
1,755,896
Valuation reserves...................................................................
L o a n s a n d d is c o u n t s , g ross— t o t a l .............................. 107,440,539
38,052,575
Real estate loans— to ta l....................................................
1,360,569
Secured by farm land......................................................
Secured by residential properties:
8,702,767
Insured by F H A .........................................................
9,681,049
Insured or guaranteed by V A ..................................
12,395,755
Not insured or guaranteed by F H A or V A ...........
5,912, 435
Secured by other properties............................................
653,962
Loans to ban ks....................................................................
2,565,350
Loans to brokers and dealers in securities...................
1,688,023
Other loans for carrying securities................................
Loans to farmers directly guaranteed b y the Com
864,426
m odity Credit C orporation .........................................
3,252,853
Other loans to farmers (excl. real esta te). ._...............
Commercial and industrial loans (including open
38,744,361
market p a p er).................................................................
18,931,432
Other loans to individuals................................................
2,687,557
All other loans (including overdrafts)..........................
T able 107.
A s s e t s a n d L i a b i l i t i e s o f O p e r a t in g I n s u r e d B a n k s in t h e U n it e d S t a t e s ( C o n t i n e n t a l U . S. a n d
D e c e m b e r 3 1 , 1 9 5 6 , J u n e 3 0 , 1 9 5 6 , a n d D e c e m b e r 3 1 , 1 9 5 5 — C o n t in u e d
(Amounts in thousands o f dollars)
O t h e r A re a s),
to
Insured commercial banks1
All insured banks
L iab ilities an d ca p ita l
Insured mutual savings banks
Dec. 31,
1955
D ec. 31,
1956
June 30,
1956
D ec. 31,
1955
D ec. 31,
1956
June 30,
1956
D ec. 31,
1955
241,427,659
228,523,563
232,602,859
216,145,285
204,252,339
209,144,779
25,282,374
24,271,224
23,458,080
Business and personal deposits— t o t a l.................... 185,213,185
Deposits of individuals, partnerships, and cor
porations— demand................................................... 110,500,065
Deposits of individuals, partnerships, and cor
70,956,096
porations— time.........................................................
Certified and officers’ checks, cash letters of credit
and travelers' checks outstanding, and amounts
3,757,024
due to Federal Reserve banks..........................
173,487,450
179,317,302
162,348,150
151,549,838
158,104,999
22,865,035
21,937,612
21,212,303
101,254,722
108,365,703
110,482,676
101,237,520
108,326,298
17,389
17,202
39,405
69,000,002
67,058,281
48,112,609
47,084,264
45,890,648
22,843,487
21,915,738
21,167,633
3,232,726
3,893,318
3,752,865
3,228,054
3,888,053
4,159
4,672
5,265
T ota l liabilities and capital
18,742,016
5,255,274
314,982
10,687,006
2,484,754
16,592,560
3,729,538
339,013
10,187,514
2,336,495
16,839,408
3,754,223
316,877
10,405,838
2,362,970
18,723,027
5,252,969
314,967
10,684,522
2,470,569
16,570,473
3,726,758
339,003
10,182,708
2,322,004
18,378
2,522
9
1,907
13,940
18,989
2,305
15
2,484
14,185
22,087
2,780
Interbank and postal savings deposits— total
Banks in the United States— demand................
Banks in the United States— time......................
Banks in foreign countries— demand..................
Banks in foreign countries— tim e........................
Postal savings........................................................
17,321,718
14,233,338
52,942
1,756,076
1,251,129
28,233
14,908,682
11,974,521
57,217
1,516,739
1,329,742
30,463
16,315,786
13,397,581
53,439
1,516,423
1,317,629
30,714
17,319,567
14,232,998
51,131
1,756,076
1,251,129
28,233
14,906,181
11,974,134
55,103
1,516,739
1,329,742
30,463
16,313,156
13,397,246
51,144
1,516,423
1,317,629
30,714
2,151
340
1,811
2,501
387
2,114
2,630
335
2,295
T otal d ep osits..................................................
219,392,689
1U ,410,993
74,981,696
207,138,148
133,920,988
73,217,160
212,225,648
141,090,077
71,135,571
196,507,125
144,384,676
52,122,449
185,179,046
133,893,938
51,285,108
190,988,628
141,037,486
49,951,142
22,885,564
26,317
22,859,247
21,959,102
27,050
21,932,052
21,237,020
52,591
21,184,429
3,885,102
3,693,961
3,362,435
3,617,998
3,442,620
3,147,093
267,104
251,341
215,342
63,671
739,674
114,787
904,518
854,476
1,207,976
342,193
512,623
103,244
845,011
719,235
1,171,655
151,618
456,058
104,954
781,944
796,940
1,070,921
63,331
789,674
99,204
881,878
843,543
990,368
341,843
512,623
77,053
831,601
705,579
973,921
150,318
456,058
94,243
766,686
787,582
892,206
340
350
1,300
15,583
22,640
10,933
217,608
26,191
13,410
13,656
197,734
10,711
15,258
9,358
178,715
T otal liabilities (excluding capital a cco u n ts ). 223,277,791
210,832,109
215,588,083
200,125,123
188,621,666
194,135,721
23,152,668
22,210,443
21,452,362
Demand.................................................................
Tim e......................................................................
M iscellaneous liabilities—to ta l..........................
Bills payable, rediscounts, and other liabilities for
borrowed money........................................................
Acceptances outstanding..............................................
Dividends declared but not yet payable....................
Income collected but not earned.................................
Expenses accrued and unpaid......................................
Other liabilities..............................................................
10
4,806
14,491
CORPORATION
16,857,786
3,756,745
316,386
10,407,745
2,376,910
INSURANCE
Governm ent deposits— to ta l...............................
United States Government— demand.................
United States Government— time.......................
States and subdivisions— demand.......................
States and subdivisions— time.............................
DEPOSIT
June 30,
1956
FEDERAL
D ec. 31,
1956
18,149,868
4,872,220
9,378,151
3,305,715
593,782
17,691,454
4,757,643
9,047,694
3,297,676
588,441
17,014,776
4,567,389
8,723,412
3,143,900
580,075
16,020,162
4,872,220
7,760,016
2,941,353
446,573
15,630,673
4,757,643
7,496,145
2,929,525
447,360
15,009,058
4,567,389
7,208,545
2,776,533
456,591
P led ged a ssets a n d se cu ritie s l o a n e d .........................
22,202,637
23,216,543
21,972,415
22,202,637
23,216,543
21,972,415
C a p ita l s to c k , n o t e s , a n d d e b e n t u r e s :
P a r o r fa c e v a lu e— t o t a l ...............................................
Common stock ..........................................................
Capital notes and debentures.....................................
Preferred stock ................................................. . . .
4,875,740
4,825,397
32,045
18,298
4,761,213
4,710,076
32.068
19.069
4,570,999
4,517,665
33,001
20,333
4,872,620
4,825,397
28,925
18,298
4,758,043
4,710,076
28,898
19,069
4,567,789
4,517,665
29,791
20,333
Retirable value of preferred s to c k .................................
27,941
29,316
30,884
27,941
29,316
30,884
Num ber of banks........................................................................
13,441
13,449
13,457
13,218
13,229
13,237
C a p ita l a c c o u n t s — t o t a l ...................................................
Capital stock, notes, and debentures...........................
Surplus..................................................................................
Undivided profits................................................................
R eserves................................................................................
2,129,706
<*>
1,618,135
364,362
147,209
2,060,781
(*)
1,551,549
368,151
141,081
2,005,718
(2)
1,514,867
367,367
123,484
M EM ORANDA
3,170
3,210
3,170
3,210
AND
223
220
220
LIABILITIES
OF OPERATING
BANKS
ASSETS
i Includes stock savings banks.
8 N ot reported separately. Included with “ Reserves.”
Back figures, 198U-1955: See the Annual R eport for 1955, pp. 128-131, and earlier reports.
3,120
3,120
E a r n in g s , E x p e n s e s ,
and
D iv id e n d s
of
Insured B an k s
Table 108.
Earnings, expenses, and dividends of insured commercial banks in the United States
(continental U. S. and other areas), 1948-1956
Table 109.
Ratios of earnings, expenses, and dividends of insured commercial banks in the
United States (continental U. S. and other areas), 1948-1956
Table 110.
Earnings, expenses, and dividends of insured commercial banks in the United States
(continental U. S. and other areas), 1956
By class of bank
Table 111.
Ratios of earnings, expenses, and dividends of insured commercial banks in the
United States (continental U. S. and other areas), 1956
By class of bank
Table 112.
Earnings, expenses, and dividends of insured commercial banks operating through
out 1956 in the United States (continental U. S. and other areas)
Banks grouped according to amount of deposits
Table 113.
Ratios of earnings, expenses, and dividends of insured commercial banks operating
throughout 1956 in the United States (continental U. S. and other areas)
Banks grouped according to amount of deposits
Table 114.
Earnings, expenses, and dividends of insured commercial banks in the United States
(continental U. S. and other areas), by State, 1956
Table 115.
Income, expenses, and dividends of insured mutual savings banks, 1951-1956
Table 116.
Ratios of income, expenses, and dividends of insured mutual savings banks, 1951-1956
Mutual savings banks
A uniform report of income, expenses, and dividends for mutual sav
ings banks was adopted by the Corporation for the calendar year 1951.
Summaries of these reports for 1951-1956 are given in Tables 115 and
116. Data prior to 1951 are omitted because of lack of comparability.
The new form attempts to present operations on a basis accurately
reflecting actual income and profit and loss, and provides more detailed
information regarding losses and valuation adjustments. For a discussion
of the history and principles of this uniform report see pp. 50-52 in
Part Two of the 1951 Annual Report.
Sources of data
National banks and State banks not members of the Federal Reserve
System in the District of Columbia: Office of the Comptroller of the
Currency.
Other insured banks: Federal Deposit Insurance Corporation.
BANKS
State banks members of the Federal Reserve System: Board of
Governors of the Federal Reserve System.
OF INSURED
Assets and liabilities shown in Table 112, and utilized for computation
of ratios shown in Table 113, are for the identical banks to which the
earnings data pertain. The assets and liabilities are as of December 31,
1956.
DIVIDENDS
Reports of earnings, expenses, and dividends are submitted to the
Federal supervisory agencies on either a cash or an accrual basis.
Earnings data are included for all insured banks operating at the end
of the respective years, unless indicated otherwise. In addition, appro
priate adjustments have been made for banks in operation during part
of the year but not at the end of the year. Data for 2 insured branches
in Guam of an insured bank in California and for 12 insured branches
in Puerto Rico of insured banks in New York are not available.
The uniform report of earnings and dividends for commercial banks
was revised in 1948 to show separately for the first time charge-offs and
transfers to valuation reserves as well as recoveries and transfers from
valuation reserves. Also, the actual recoveries and losses that are credited
and charged to valuation reserves were reported as memoranda items.
Averages of assets and liabilities shown in Tables 108-111 and 114 are
based upon figures at the beginning, middle, and end of each year, as
reported by banks operating on those dates, adjusted to exclude asset
and liability figures for insured branches in Guam of an insured bank in
California and in Puerto Rico of insured banks in New York. Conse
quently, the asset and liability averages are not strictly comparable
with the earnings data, but the differences are not large enough to
affect the totals significantly. Some further incomparability is also
introduced into the data by class of bank by shifts between those
classes during the year.
EARNINGS, EXPEN SES, AND
Commercial banks
Table 108.
E a r n i n g s , E x p e n s e s , a n d D iv id e n d s o f I n s u r e d C o m m e r c ia l B a n k s in t h e
U n i t e d S t a t e s (C o n t i n e n t a l U . S. a n d O t h e r A r e a s ), 1948-1956
(Amounts In thousands o f dollars)
Earnings or expense item
1948
1949
1950
1951
1952
1953
1954
h-*
O)
1955
1956
4,395,411
983,662
249,495
2,390,106
34,595
230,507
4,931,688
1,099,059
276,993
2,742,100
42,295
244,696
5,483,954
1,206,965
297,739
3,107,885
47,850
271,444
5,773,787
1,272,731
324,823
3,205,894
57,550
311,806
6,377,705
1,333,690
351,041
3,625,528
71,048
339,975
7,231,921
1,342,842
370,045
4,339,866
73,562
385,927
97,456
156,678
178,016
95,420
160,430
182,030
104,602
180,674
184,445
116,140
192,313
198,593
121,8 6 8
204,967
199,713
132,978
217,996
2 0 1 ,10 1
144,140
246,223
210,621
155,004
281,841
219,579
168,497
322,117
229,068
C u r r e n t o p e r a t in g exp en ses— t o t a l ...................
Salaries— officers.......................................................
Salaries and wages— em ployees............................
Fees paid to directors and members of executive,
discount, and other com m ittees...............................
Interest on time and savings deposits................
Interest and discount on borrowed m oney
Taxes other than on net incom e..........................
Recurring depreciation on banking house, furniture
and fixtures....................................................................
Other current operating expenses........................
2,163,514
381,756
662,696
2,283,727
410,685
700,065
2,444,534
446,043
755,681
2,701,313
486,300
864,519
3,028,575
530,035
965,197
3,375,552
582,405
1,069,890
3,638,087
622,862
1,139,013
3,960,173
666,152
1,229,756
4,457,198
720,866
1,372,262
20,859
316,570
3,432
106,163
22,608
328,010
3,582
113,569
24,745
343,040
4,296
128,101
27,343
385,344
9,667
135,590
30,871
458,059
20,921
139,290
34,591
534,493
24,171
148,783
37,197
618,341
8,556
166,452
39,563
678,237
23,093
176,840
42,614
805,857
45,392
187,526
48,271
623,767
53,988
651,219
59,469
683,159
65,845
726,707
74,953
809,252
84,085
897,137
94,720
950,945
108,306
1,038,228
128,085
1,154,600
N et c u r r e n t o p e r a tin g e a r n in g s .........................
1,240,072
1,323,153
1,486,164
1,694,100
1,903,112
2,108,398
2,135,700
2,417,533
2,774.724
266,439
213,187
245,461
169,233
144,146
152,373
631,496
239,598
250,171
29,221
24,161
60,025
16,412
26,672
73,196
14,718
38,639
90,469
15,292
12,285
56,563
11,191
20,492
33,806
11,454
27,545
38,865
14,912
60,555
416,520
20,586
39,930
57,085
14,090
41,001
31,151
39,748
48,934
64,350
23,142
28,220
45,546
28,506
29,971
43,157
22,595
28,453
34,046
22,004
27,330
29,324
28,423
18,292
27,794
34,014
57,965
47,530
27,379
50,899
43,722
20,762
77,606
65,563
485,753
379,824
366,932
395,687
362,444
448,323
552,606
707,155
993,534
317,381
101,830
32,018
452,940
89,369
R e co v e r ie s , tra n sfers fr o m reserve a ccou in ts,
a n d p ro fits — t o t a l .............................................
On securities:
Transfers from reserve accounts......................
Profits on securities sold or redeem ed............
On loans:
Recoveries..............................................................
Transfers from reserve accounts......................
All o th er.....................................................................
L osses, c h a r g e -o ff8, a n d tra n sfe rs t o res
a c c o u n t s — t o t a l .................................................
On securities:
Losses and charge-offs........................................
Transfers to reserve accounts...........................
On loans:
Losses and charge-offs........................................
Transfers to reserve accounts...........................
78,590
40,941
38,671
33,044
38,721
54,518
83,756
31,680
97,512
29,531
155,969
54,160
66,670
126,173
221,232
67,276
32,393
278,666
55,163
29,064
221,167
57,878
23,030
191,248
59,414
21,215
204,202
54,836
23,637
154,510
57,253
31,774
132,127
74,291
29,269
222,998
107,497
28,159
303,600
86,886
CORPORATION
3,930,696
1,015,456
225,425
1,976,100
31,724
212,272
INSURANCE
3,606,879
1,013,515
201,691
1,733,690
26,090
194,013
DEPOSIT
3,403,586
1,008,138
189,559
1,577,633
22,315
173,791
FEDERAL
C u r r e n t o p e r a tin g ea rn in g s — t o t a l ...................
Interest on U . S. Government obligations. . . .
Interest and dividends on other securities........
Interest and discount on loans.............................
Service charges and fees on bank’s loans..........
Service charges on deposit accounts...................
Other service charges, commissions, fees, and
collection and exchange charges......................
Trust departm ent.....................................................
Other current operating earnings........................
1,020,758
1,156,514
1,364,690
1,467,645
1,684,813
1,812,451
2,214,591
1,949,976
2,031,360
T a xes o n n e t in c o m e — t o t a l .........................................
Federal.................................................................................
S tate.....................................................................................
275,422
258,490
16,932
325,148
304,572
20,576
427,776
402,582
25,194
559,475
530,810
28,664
694,883
662,277
32,606
786,490
750,796
35,693
907,560
862,065
45,495
793,737
753,883
39,855
814,636
769,843
44,793
N e t p ro fits a fte r in c o m e ta x e s .....................................
745,336
831,364
936,915
908,175
989,931
1,025,963
1,307,032
1,156,240
1,216,725
D iv id e n d s a n d in te re s t o n ca p ita l— t o t a l ...............
Dividends declared on preferred stock and interest
on capital notes and debentures..............................
Cash dividends declared on com m on s tock ...............
331,833
354,144
391,249
418,860
441,971
473,866
516,977
566,124
616,890
5,230
326,603
5,093
349,052
4,333
386,916
3,876
414,984
3,675
438,298
2,979
470,888
2,912
514,066
2,581
563,543
2,389
614,501
N e t a d d it io n s to c a p ita l fr o m p r o fit s .......................
413,503
477,:220
545,666
489,315
547,961
552,097
790,055
590,118
599,835
E A R N IN G S ,
N e t p ro fits b e fo re i n c o m e ta x e s ..................................
2,600
19,645
3,565
123,507
2,363
28,477
4,355
31,508
2,232
33,612
3,154
40,384
3,146
39,794
3,332
42,717
18,031
46,487
6,104
72,978
6,324
157,733
17,725
64,735
25,598
64,607
38,480
89,186
15,841
89,495
68,140
88,417
95,505
123,529
A verage a ssets a n d lia b ilitie s 2
A ssets— t o t a l ........................................................................
Cash and due from b an k s..............................................
United States Government obligations......................
Other securities.................................................................
Loans and discounts........................................................
All other assets..................................................................
150,726,513
36,247,026
64,291,298
8,872,676
39,650,962
1,664,551
151,566,078
35,683,829
63,080,739
9,387,984
41,670,879
1,742,647
158,986,894
36,006,423
63,846,830
11,043,342
46,250,272
1,840,027
169,207,394
40,373,273
59,711,922
12,554,632
54,533,221
2,034,346
179,803,463
42,952,808
61,065,059
13,562,462
59,999,743
2,223,391
185,685,283
43,192,523
60,868,295
14,082,070
65,213,144
2,329,251
193,339,614
42,976,798
64,372,065
15,209,165
68,148,039
2,633,547
202,331,676
43,510,745
63,808,049
16,294,075
75,800,688
2,918,119
209,712,780
45,728,691
58,257,149
16,179,498
86,291,628
3,255,814
DIVIDEN DS
L ia b ilitie s a n d c a p ita l— t o t a l .......................................
T otal deposits....................................................................
Demand deposits............................................................
Time and savings deposits...........................................
Borrowings and other liabilities...................................
Total capital accounts.....................................................
150,726,513
139,517,461
101*,195,068
35,322,898
1,257,852
9,951,200
151,566,078
139,764,394
108,862,159
35,902,235
1,380,578
10,421,106
158,986,894
146,269,294
109,822,638
36,1*1*6,656
1,710,204
11,007,396
169,207,394
155,460,465
118,189,171
87,271,291*
2,131,162
11,615,767
179,803,463
165,031,495
125,218,81*2
89,817,658
2,501,055
12,270,913
185,685,283
170,075,888
127,028,882
1*8,01*7,556
2,667,917
12,941,478
193,339,614
176,865,497
130,028,191
1*6,81*2,306
2,712,778
13,761,339
202,331,676
184,734,232
135,1*22,891
1*9,811,81*1
2,965,764
14,631,680
209,712,780
190,786,522
139,690,1*32
51,096,090
3,372,960
15,553,298
Num ber of active officers, Decem ber 3 1 ........................
N um ber of other em ployees, Decem ber 3 1 ...................
67,609
292,015
69,439
296,308
71,566
312,324
73,806
334,961
76,754
358,325
79,574
376,750
82,167
386,625
84,931
408,791
88,462
433,563
N um ber o f banks, Decem ber 3 1 .......................................
13,419
13,436
13,446
13,455
13,439
13,432
13,323
13,237
13,218
BANKS
INSURED
N ote: Due to rounding differences, data for 1949 through 1956 may not add precisely to the indicated totals.
1 Revised.
2 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
Bach figures, 19S1*-19U7: See the following Annual Reports: 1950, pp. 250-251, and 1941, p p . 158-159.
OF
7,224
10,844
AND
EXPEN SES,
M em oran d a
Recoveries credited to reserve accounts (not included
in recoveries above):
On securities.......................................................................
On loa n s..............................................................................
Losses charged to reserve accounts (not included in
losses above):
On securities.......................................................................
On loans..............................................................................
^
h
-1
Table 109.
R a t i o s o f E a r n i n g s , E x p e n s e s , a n d D iv id e n d s o f I n s u r e d C o m m e r c ia l B a n k s in t h e
U n i t e d S t a t e s (C o n t i n e n t a l U. S. a n d O t h e r A r e a s ), 1948-1956
Earnings or expense item
1952
1951
1954
1953
1956
1955
$100.00
22.38
5.68
55.17
5.24
$100.00
22.29
5.62
56.46
4.96
$100.00
22.0 1
5.43
57.55
4.95
$100.00
22.04
5.63
56.52
5.40
$ 100.00
20.91
5.51
57.96
5.33
$100.00
18.57
5.12
61.03
5.33
2.86
9.83
2.65
9.49
2.66
9.29
2.64
8.89
2.47
8.20
2.42
7.64
2.50
7.91
2.43
7.86
2.33
7.62
C u rre n t o p e r a tin g exp en ses— t o t a l ...........................
Salaries, wages, and fees................................................
Interest on time and savings deposits........................
Taxes other than on net incom e...................................
Recurring depreciation on banking house, furniture
and fixtures....................................................................
Other current operating expenses................................
63.57
31.30
9.30
3.12
63.32
31.42
9.10
3.15
62.19
31.20
8.73
3.26
61.46
31.35
8.77
3.09
61.41
30.95
9.29
2.82
61.55
30.76
9.75
2.71
63.01
31.16
10.71
2.88
62.09
30.35
10.63
2.77
61.63
29.53
11.14
2.60
1.42
18.43
1.50
18.15
1.51
17.49
1.50
16.75
1.52
16.83
1.53
16.80
1.64
16.62
1.70
16.64
1.77
16.59
N et c u r r e n t o p e r a t in g e a r n in g s ..................................
36.43
36.68
37.81
38.54
38.59
38.45
36.99
37.91
38.37
2.26
1.44
.82
2.38
1.51
.87
2.47
1.54
.93
2.60
1.60
1.00
2.74
1.68
1.06
2.96
1.82
1.14
2.98
1.88
1 .1 0
3.15
1.96
1.19
3.45
2.13
1.32
.18
.14
.16
.10
.08
.08
.33
.12
.12
.32
.68
.49
.25
.76
.55
.23
.86
.59
.23
.87
.54
.20
.94
.55
.24
.98
.55
.28
1.15
.68
.35
.96
.57
.47
.97
.58
12.46
12.70
13.50
14.58
15.51
16.29
15.52
16.52
17.84
2.68
2.04
2.23
1.46
1.17
1.18
4.59
1.64
1.61
4.88
10.26
2.77
7.49
3.33
4.16
3.64
1 1 .1 0
3.12
7.98
3.40
4.58
3.33
12.40
3.89
8.51
3.55
4.96
3.41
12.63
4.81
7.82
3.61
4.21
2.95
13.73
5.66
8.07
3.60
4.47
3.46
14.01
6.08
7.93
3.66
4.27
4.02
16.09
6.59
9.50
3.76
5.74
4.83
13.33
5.43
7.90
3.87
4.03
6.39
13.06
5.24
7.82
3.96
3.86
A m o u n t s p e r $100 o f t o ta l a ss e ts 1
Current operating earnings— to ta l...................................
Current operating expenses— tota l...................................
N et current operating earnings.........................................
Recoveries, transfers from reserve accounts, and
profits— to ta l......................................................................
Losses, charge-offs, and transfers to reserve acN et profits before incom e taxes........................................
N et profits after incom e taxes...........................................
A m o u n t s p e r $100 o f t o ta l ca p ita l a c
cou n ts1
N et current operating earnings.........................................
Recoveries, transfers from reserve accounts, and
profits— to ta l.....................................................................
Losses, charge-offs, and transfers to reserve ac
counts— to ta l.....................................................................
N et profits before income taxes........................................
Taxes on net incom e............................................................
N et profits after incom e taxes...........................................
Cash dividends declared.....................................................
N et additions to capital from profits..............................
CORPORATION
$100.00
25.83
5.74
51.08
5.40
INSURANCE
$100.00
28.10
5.59
48.79
5.38
DEPOSIT
$100.00
29.62
5.57
47.01
5.11
FEDERAL
A m o u n t s p er $100 o f c u r r e n t o p e r a tin g
ea rn in g s
C u r r e n t o p e r a tin g e a rn in g s — t o t a l ............................
Interest on U . S. Government obligations................
Interest and dividends on other securities................
Incom e on loans................................................................
Service charges on deposit accounts............................
Other service charges, commissions, fees, and
collection and exchange charges...............................
Other current operating earnings.................................
1950
1949
1948
h-
oJ
4.22
4.34
4.45
4.64
4.84
4.79
4.88
5.11
1.57
2.14
.17
.90
1.61
2.15
.19
.91
1.59
2.04
.19
.94
1.65
1.99
.20
1.03
1.80
2.04
.20
1.15
1.98
2 .11
.2 1
1.24
1.98
2.14
.24
1.32
2.09
2.15
.25
1.38
2.31
2.29
.28
1.58
A ssets a n d lia b ilitie s p e r $100 o f to ta l
a ssets 1
A ssets— t o t a l ........................................................................
Cash and due from ban ks..............................................
United States Government obligations......................
Other securities.................................................................
Loans and discounts........................................................
All other assets..................................................................
100.00
24.05
42.65
5.89
26.31
1 .1 0
100.00
23.55
41.62
6.19
27.49
1.15
100.00
22.65
40.16
6.94
29.09
1.16
100.00
23.86
35.29
7.42
32.23
1.20
100.00
23.89
33.96
7.54
33.37
1.24
100.00
23.26
32.78
7.58
35.12
1.26
100.00
22.23
33.29
7.87
35.25
1.36
100.00
21.51
31.54
8.05
37.46
1.44
100.00
21.81
27.78
7.71
41.15
1.55
L ia b ilitie s a n d ca p ita l— t o t a l .......................................
Total deposits....................................................................
Demand deposits............................................................
Time and savings deposits...........................................
Borrowings and other liabilities..................................
T otal capital a ccou nts....................................................
100.00
92.56
69.13
23.*3
.84
6.60
100.00
92.21
68.52
23.69
.91
6.88
100.00
92.00
69.08
22.92
1.08
6.92
100.00
91.88
69.85
22.03
1.26
6.86
100.00
91.78
69.6*
22.1*
1.39
6.83
100.00
91.59
68.*1
23.18
1.44
6.97
100.00
91.48
67.25
2 *.23
1.40
7.12
100.00
91.30
66.93
2 *.37
1.47
7.23
100.00
90.97
66.61
2*.36
1.61
7.42
Num ber o f banks, December 3 1 ......................................
13,419
13,436
13,446
13,455
13,439
13,432
13,323
13,237
13,218
1Asset and liability items are averages of figures reported at beginning, middle, and end o f year.
Back figures, 1934-19*7: See the following Annual Reports: 1950, pp. 252-253, and 1941, p p. 160-161.
OF INSURED
BANKS
DIVIDENDS
4.04
EARNINGS, EXPEN SES, AND
S p ecia l r a t io s 1
Incom e on loans per $100 of loa n s..................................
Incom e on U . S. Governm ent obligations per $100
o f U . S. Governm ent obligations.................................
Incom e on other securities per $100 of other securities.
Service charges per $100 of demand deposits...............
Interest paid per $100 o f time and savings deposits. .
Table 110.
E a r n i n g s , E x p e n s e s , a n d D iv id e n d s o f I n s u r e d C o m m e r c ia l B a n k s in t h e
U n i t e d S t a t e s ( C o n t i n e n t a l U. S . a n d O t h e r A r e a s ), 1956
to
BY CLASS OF BANK
(Amounts in thousands of dollars)
°
Members F . R . System
Earnings or expense item
Total
Recurring depreciation on banking house, furniture and fixtures...........................
Profits on securities sold or redeem ed.........................................................................
On loans:
L o sse s, c h a r g e -o ffs , a n d tra n s fers to reserve a c c o u n t s — t o t a l ...........................
On securities:
On loans:
3,820,540
735,039
201,823
2,314,120
37,773
210,674
69,931
116,794
134,386
2,256,697
365,226
105,947
1,347,884
24,901
99,491
51,643
192,280
69,326
1,154,684
242,577
62,275
677,862
10,888
75,762
46,923
13,043
25,356
7,162,228
1,329,704
367,450
4,314,788
73,244
382,894
167,636
299,964
226,550
69,693
13,138
2,595
25,078
319
8,033
861
22,153
2,518
4,457,198
720,866
1,372,262
42,614
805,857
45,392
187,526
128,085
1,154,600
2,327,841
358,031
716,822
19,252
435,444
25,542
106,219
69,967
596-564
1,351,302
195,164
465,010
9,903
213,778
18,251
50,989
32,880
365,326
778,055
167,671
190,430
13,459
156,635
1,599
30,318
25,238
192,710
4,409,292
713,342
1,356,018
42,268
800,140
45,270
186,104
126,935
1,139,219
47,906
7,525
16,244
347
5,717
122
1,422
1,150
15,382
2,774,724
1,492,699
905,395
376,630
2,752,938
21,787
250,171
119,005
106,801
24t365
239,459
10,713
14,090
41,001
31,151
10,082
25,462
11,414
2,496
14,283
16,112
1,512
1,256
3,625
12,987
35,991
30,876
1,103
5,010
275
20,762
77,606
65,563
10,494
32,930
28,623
3,815
40,349
29,747
6,453
4,327
7,193
20,349
77,421
61,835
413
185
3,727
993,534
536,031
343,793
113,710
987,624
5,910
317,881
101,830
182,519
61,319
94,052
35,682
40,810
4,829
314,204
101,623
3,177
207
32,018
452,940
89,369
11,119
232,893
48,181
10,732
174,651
28,677
10,167
45,396
12,511
31,755
451,240
88,804
264
1,699
565
CORPORATION
R e c o v e r ie s , tra n s fe rs f r o m reserve a c c o u n t s , a n d p ro fits — t o t a l .....................
On securities:
7,231,921
1,342,842
370,045
4,339,866
73,562
385,927
168,497
322,117
229,068
INSURANCE
Fees paid to directors and members of executive, discount, and other committees
Interest and discount on borrowed m on ey ....................................................................
Operating
less than
full year1
DEPOSIT
Service charges on deposit a ccou nts............................................................... ................
Other service charges, commissions, fees, and collection and exchange charges. .
State
Operating
throughout
the year
FEDERAL
National
N ot
members
F. R .
System
2,031,360
T a x e s o n n e t in c o m e — t o t a l ..............................................................................................
Federal.....................................................................................................................................
814,636
769,843
44,793
N e t p ro fits a fte r i n c o m e t a x e s .........................................................................................
D iv id e n d s a n d in te re s t o n ca p ita l— t o t a l ...................................................................
D ividends declared on preferred stock and interest on capital notes and
debentures..........................................................................................................................
Cash dividends declared on com m on s tock ...................................................................
1,075,673 j
2,004,771
26,589
287,318
265,553
21,765
96,952
92,641
4,311
805,626
761,715
43,911
9,011
8,128
883
645,307
381,086
190,332
1,199,146
17,579
329,230
217,681
69,979
612,055
4,835
177
329,053
1,415
216,266
797
69,182
2,387
609,669
2
4,833
599,835
316,077
163,405
120,353
587,091
12,744
3,332
42,717
2,945
26,663
240
8,780
147
7,274
2,846
42,600
486
117
95,505
123,529
56,170
66,863
36,660
41,673
2,675
14,993
95,471
123,319
34
210
A verage assets a n d liabilities*
A ssets— t o t a l ............................................................................................................................
Cash and due from banks..................................................................................................
United States Government obligations..........................................................................
Other securities......................................................................................................................
Loans and discounts.............................................................................................................
All other assets......................................................................................................................
209,712,780
45,728,691
58,257,149
16,179,498
86,291,628
3,255,814
113,819,808
25,415,842
31,900,555
8,994,661
45,799,314
1,709,436
65,855,444
15,201,124
16,253,144
4,422,079
28,790,315
1,188,782
30,037,528
5,111,725
10,103,450
2,762,758
11,701,999
357,596
L ia b ilitie s a n d c a p ita l— t o t a l ...........................................................................................
Total deposits........................................................................................................................
Demand deposits................................................................................................................
Time and savings deposits...............................................................................................
Borrowings and other liabilities........................................................................................
Total capital accounts.........................................................................................................
209,712,780
190,786,522
189,690,432
51,096,090
3,372,960
15,553,298
113,819,808
103,963,387
76,155,822
27,807,565
1,657,346
8,199,075
65,855,444
59,362,059
45,775,316
13,586,743
1,451,336
5,042,049
30,037,528
27,461,076
17,759,294
9,701,782
264,278
2,312,174
Num ber of active officers, December 3 1 ............................................................................
Number of other em ployees, Decem ber 3 1 ........................................................................
88,462
433,563
41,923
228,463
19,386
135,151
27,153
69,949
87,903
430,402
559
3,161
13,218
4,651
1,807
6,760
13,101
117
1,216,725
616,890
2,389
614,501
N e t a d d it io n s t o c a p ita l f r o m p r o fit s ...........................................................................
M em oran da
Recoveries credited to reserve accounts (not included in recoveries above):
On securities...........................................................................................................................
On loa n s. ................................................................................................................................
Losses charged to reserve accounts (not included in losses above):
On securities...........................................................................................................................
On loans..................................................................................................................................
BANKS
Note: Due to rounding differences, earnings data of State banks may not add precisely to the indicated totals.
1 Includes banks operating less than full year and a few banks which engage primarily in fiduciary business.
1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
Back figures, 1934-1955: See Table 108, p p . 116-117, the Annual Report for 1955, pp . 138-139, and earlier reports.
OF INSURED
Number o f banks, December 3 1 .........................................................................................
668,404 j
DIVIDENDS
287,283
430,366
411,649
18,717
EARNINGS, EXPEN SES, AND
N e t p ro fits b e fo r e in c o m e t a x e s ......................................................................................
bO
Table 111.
R a t i o s o f E a r n i n g s , E x p e n s e s , a n d D iv id e n d s o f I n s u r e d C o m m e r c ia l B a n k s in t h e
U n i t e d S t a t e s ( C o n t i n e n t a l U . S. a n d O t h e r A r e a s ), 1956
BY CLASS OF BANK
Members F . R . System
State
National
Amounts per $100 of current operating earnings
$100.00
$100.00
$100.00
18.57
5.12
61.03
5.33
2.33
7.62
19.24
5.28
61.56
5.51
1.83
6.58
16.18
4.70
60.83
4.41
2.29
11.59
2 1.0 1
5.39
59.65
6.56
4.06
3.33
60.93
59.88
67.38
28.64
11.40
2.78
1.83
16.28
29.69
9.47
2.26
1.46
17.00
32.18
13.56
2.62
2.19
16.83
38.37
39.07
40.12
32.62
3.45
2.13
1.32
.12
.47
.97
.58
3.36
2.05
1.31
.10
.47
.94
.57
3.42
2.05
1.37
.16
.52
1.0 1
.58
3.84
2.59
1.25
.08
.38
.95
.63
(2)
.02
(2)
.02
(2)
.01
(2)
.02
.05
.06
.05
.06
.06
.06
.01
.05
Memoranda
Recoveries credited to reserve accounts (not included in recoveries above):
Losses charged to reserve accounts (not included in losses a bov e):
C O RPORATION
61.63
29.53
11.14
2.60
1.77
16.59
INSURANCE
Recoveries transfers from reserve accounts, and profits— total ............................................................................
Losses charge-offs and transfers to reserve accounts— total
..........................................................................
$100.00
DEPOSIT
Amounts per $100 of total assets1
N ot
members
F. R .
System
Total
FEDERAL
Earnings or expense item
18.21
1.45
6.54
13.12
5.25
7.87
4.01
3.86
17.96
2 .1 2
6.82
13.26
5.70
7.56
4.32
3.24
16.29
1.05
4.92
12.42
4.19
8.23
3.03
5.20
.02
.27
.04
.33
(8>
.17
.01
.31
.61
.79
.69
.82
.73
.83
.12
.65
S p ecial r a tio s 1
Incom e on loans per $100 of loans . .........................................................................................
Incom e on U . S. Government obligations per $100 of U. S. Government obligations
Incom e on other securities per $10 0 of other securities......................................................
Service charges per $100 of demand deposits........................................................................
Interest paid per $10 0 of time and savings deposits...........................................................
5.11
2.31
2.29
.28
1.58
5.14
2.30
2.24
.28
1.57
4.77
2.25
2.40
.22
1.57
5.89
2.40
2.25
.43
1.61
A ssets a n d lia b ilitie s p er $100 o f to ta l assets1
A ssets— t o t a l ................................................................................................................................
Cash and due from b an k s.......................................................................................................
United States Government obligations...............................................................................
Other securities....................................... ..................................................................................
Loans and discounts.................................................................................................................
All other assets..........................................................................................................................
100.00
21.81
27.78
7.71
41.15
1.55
100.00
22.33
28.03
7.90
40.24
1.50
100.00
23.08
24.68
6.71
43.72
1.81
100.00
17.02
33.63
9.20
38.96
1.19
L ia b ilitie s a n d ca p ita l— t o t a l ...............................................................................................
Total deposits.............................................................................................................................
Demand deposits.....................................................................................................................
Time deposits........................................................................................................... ’ ............
Borrowings and other liabilities................................................................................. ..........
T otal capital accou nts.............................................................................................................
100.00
90.97
66.61
24.36
1.61
7.42
100.00
91.34
66.91
24.43
1.46
7.20
100.00
90.14
69.51
20.63
2.20
7.66
100.00
91.42
59.12
32.30
.88
7.70
Num ber of banks, Decem ber 3 1 ...............................................................................................
13,218
4,651
1,807
6,760
BANKS
INSURED
DIVIDEN DS
1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
* Less than .005.
Back figures, 1934-1955: See Table 109, p p . 118-119, the Annual Report for 1955, pp. 140-141, and earlier reports.
E X P E N S E S , AND
^M e m o ra n d a
Recoveries credited to reserve accounts (not included in recoveries above):
On securities...............................................................................................................................
On loans.......................................................................................................................................
Losses charged to reserve accounts (not included in losses above):
On securities...............................................................................................................................
On loans.......................................................................................................................................
E A R N IN G S ,
17.84
1.61
6.39
13.06
5.24
7.82
3.96
3.86
OF
A m o u n t s p er $100 o f t o ta l ca p ita l a c c o u n t s 1
N et current operating earnings.................................................................................................
Recoveries, transfers from reserve accounts, and profits— tota l......................................
Losses, charge-offs, and transfers to reserve accounts— tota l...........................................
N et profits before income taxes.................................................................................................
Taxes on net incom e.....................................................................................................................
N et profits after income taxes...................................................................................................
Cash dividends declared..............................................................................................................
N et additions to capital from profits.......................................................................................
to
co
Table 112,
E a r n i n g s , E x p e n s e s , a n d D iv id e n d s o f I n s u r e d C o m m e r c ia l B a n k s O p e r a t i n g T h r o u g h o u t
i n t h e U n i t e d S t a t e s (C o n t i n e n t a l U . S. a n d O t h e r A r e a s )
banks
grouped
a c c o r d in g
to
am ount
of
1956
d e p o s it s
Banks with deposits of— *
Earnings or expense item
All
banks1
$5,000,000 $10 ,000,000 $25,000,000 $50,000,000 $100 ,000,000 $500,000,000
to
to
to
to
to
or
$1 0 ,000,000 $25,000,000 $50,000,000 $100,000,000 $500,000,000
more
7,162,228
1,329,704
367,450
4,314,788
73,244
382,894
47,752
10,487
1,686
29,360
251
2,195
160,515
38,110
6,846
96,199
592
7,775
529,974
125,768
29,660
312,237
2,591
30,140
167,636
299,964
226,550
3,048
39
687
8,298
200
2,495
19,041
954
9,583
14,945
3,637
11,699
C u r r e n t o p e r a tin g exp en ses— t o t a l ..............
Salaries— officers..................................................
Salaries and wages— em ployees.......................
Fees paid to directors and members of execu
tive, discount, and other com m ittees........
Interest on time and savings deposits...........
Interest and discount on borrowed m o n e y . .
Taxes other than on net in com e......................
Recurring depreciation on banking house,
furniture and fixtures.....................................
Other current operating expenses....................
4,409,292
713,342
1,356,018
32,250
13,180
4,127
105,530
36,069
16,587
348,226
94,077
69,302
42,268
800,140
45,270
186,104
940
4,407
41
1,405
3,097
18,189
123
4,851
126,935
1,139,219
730
7,422
N e t c u r r e n t o p e r a tin g e a r n in g s .....................
2,752,938
dollars)
546,803
116,415
28,787
311,581
4,994
39,184
539,843
105,965
27,491
315,064
6,257
34,227
1,475,561
261,159
70,350
882,060
12,881
71,621
2,508,756
372,254
125,080
1,586,339
34,500
97,382
19,305
12,832
20,010
12,272
14,990
18,581
11,765
20,482
18,594
29,395
89,353
58,744
49,567
157,478
86,158
374,084
79,823
90,567
525,718
92,138
145,494
362,530
56,647
106,841
352,928
52,534
110,919
910,600
124,205
309,146
1,397,425
164,668
503,036
9,531
69,009
546
15,229
7,367
76,808
618
16,208
7,464
104,371
1 ,1 1 1
20,952
3,363
72,085
1,457
15,096
2,596
59,134
2,675
15,254
4,451
138,914
10,362
40,294
3,461
257,224
28,336
56,816
3,010
23,605
11,947
78,585
13,666
89,028
19,529
134,659
12,613
94,430
11,608
98,210
25,643
257,585
28,187
355,696
15,502
54,985
181,748
191,601
261,620
184,271
186,916
564,961
1,111.333
239.459
1,230
3,541
10,155
9,436
13,084
10,714
9,465
46,193
135,639
12,987
35,991
30,876
40
3
36
113
75
211
753
197
894
1,096
607
1,301
912
1,207
1,528
1,779
1,162
1,215
740
1 ,10 2
2 ,1 0 1
4,989
12,198
6,843
2,565
19,442
16,747
Transfers from reserve accou nts.................
20,349
77,421
61,835
907
77
169
2,231
183
728
4,916
939
2,457
3,191
1,246
1,996
2,574
2,318
4,545
1,370
1,692
3,497
686
2,435
2,402
2,023
12,484
7,658
2,453
56,047
38,385
L o sse s, c h a r g e -o ff8, a n d tra n s fers t o r e
serve a c c o u n t s — t o t a l .................................
On securities:
Losses and charge-offs....................................
Transfers to reserve accou nts......................
On loans;
Losses and charge-offs....................................
Transfers to reserve accou nts......................
987,624
3,180
11.951
47,550
60,779
90,175
70,793
67,002
204,161
432,035
314,204
101,623
372
139
2,422
463
16,834
1.330
25,143
1,498
37,879
3,133
28,912
2,535
22,792
4,654
69,607
15,664
110,244
72,209
31,755
451,240
88,804
1,506
783
382
3,890
3,302
1,875
7,779
15,372
6,236
5,005
22,015
7,118
3,169
36,164
9,830
1,179
31,138
7,030
575
31,614
7,367
1,402
97,597
19,892
7,247
213,260
29,076
C u r r e n t o p e r a tin g ea rn in g s — t o t a l ..............
Interest on U . S. Government ob lig a tion s.. .
Interest and dividends on other securities. . .
Interest and discount on loans........................
Service charges and fees on bank’s loans----Service charges on deposit accounts...............
Other service charges, commissions, fees,
and collection and exchange charges.........
Other current operating earnings....................
R e co v e r ie s, tra n sfe rs fr o m reserve a c
c o u n t s , a n d p ro fits— t o t a l ........................
On securities:
Recoveries..........................................................
Transfers from reserve accounts.................
Profits on securities sold or redeem ed. . . .
On loans:
(Amount s in thousand Is of
787,339
565,686
171,310
128,237
34,561
42,991
328,908
453,041
3,805
7,374
39,894
60,475
CORPORATION
$2 ,000,000
to
$5,000,000
INSURANCE
$1 ,000,000
to
$2 ,000,000
DEPOSIT
Less
than
$1 ,000,000
46,575
144,353
140,259
184,529
124,194
129,379
406,992
814,937
3,700
3,545
155
13,119
12,571
547
43,588
42,006
1,582
49,249
47,697
1,552
72,110
69,802
2,309
50,659
49,127
1,533
53,061
51,037
2,024
174,537
167,303
7,236
345,601
318,628
26,973
N e t p ro fits a fte r i n c o m e t a x e s ........................
1,199,146
9,852
33,456
100,766
91,010
112,419
73,534
76,319
232,455
469,336
D iv id e n d s a n d in te r e s t o n ca p ita l— t o t a l . .
Dividends declared on preferred stock and
interest on capital notes and debentures. .
Cash dividends declared on com m on s to ck ..
612,055
3,440
11,517
36,526
35,769
46,974
33,491
36,493
118,577
289.269
2,387
609,669
7
3,434
23
11,494
94
36,432
84
35,685
250
46,725
206
33,285
550
35,942
1,175
117,402
289.269
N e t a d d it io n s t o ca p ita l fr o m p r o f it s ..........
587,091
6,412
21,940
64,240
55,241
65,446
40,044
39,826
113,878
180,066
' M e m o ra n d a
Recoveries credited to reserve accounts (not
included in recoveries above):
On securities..........................................................
On loans.................................................................
Losses charged to reserve accounts (not in
cluded in losses above):
On securities..........................................................
On loans.................................................................
2,846
42,600
232
*8
942
55
3,727
82
4,549
17
5,258
57
3,372
23
3,274
751
6,945
1,853
14,303
95,471
123,319
1
451
60
1,914
238
7,787
670
9,471
1,869
11,679
1,779
8,290
5,549
8,349
16,942
17,808
68,365
57,574
A ssets a n d lia b ilitie s 7
A ssets— t o t a l ........................................................... 215,388,851
Cash and due from ban ks................................. 48,274,049
United States Governm ent obligations......... 57,721,093
Other securities.................................................... 15,948,275
Loans and discounts........................................... 89,893,937
All other assets.....................................................
3,551,497
1,278,201
281,656
443,688
75,274
470,011
7,572
4,491,759
919,444
1,612,080
314,678
1,611,442
34,115
15,304,399
3,055,213
5,304,817
1,378,393
5,419,250
146,726
16,309,124
3,186,379
5,464,056
1,637,117
5,832,840
188,732
22,435,817
4,398,420
7,322,692
2,078,961
8,329,277
306,467
15,923,960
3,231,470
5,088,221
1,338,560
6,030,958
234,751
15,871,886
3,518,087
4,677,789
1,253,924
6,181,152
240,934
44,674,956
10,988,283
11,468,614
2,977,819
18,538,770
701,470
79,098,749
18,695,097
16,339,136
4,893,549
37,480,237
1,690,730
L ia b ilitie s a n d c a p ita l— t o t a l .......................... 215,388,851
Total deposits....................................................... 195,896,830
Demand deposits............................................... 148,948,518
Time and savings deposits.............................. 51,948,812
Borrowings and other liabilities......................
3,569,403
T otal capital a ccou n ts........................................ 15,922,618
1,278,201
1,136,518
867,225
269,293
2,838
138,845
4,491,759
4,050,200
2,882,408
1,167,792
13,841
427,718
15,304,399
13,969,122
9,455,959
4,518,168
60,598
1,274,679
16,309,124
14,988,817
9,834,342
5,154,475
100,138
1,220,169
22,435,817
20,678,880
13,481,208
7,197,672
198,383
1,558,554
15,923,960
14,706,814
9,898,879
U,812,935
167,409
1,049,737
15,871,886
14,641,959
10,706,060
3,935,899
186,827
1,043,100
44,674,956
41,027,278
81,950,459
9,076,819
582,012
3,065,666
79,098,749
70,697,242
54,876,978
15,820,264
2,257,357
6,144,150
87,903
430,402
3,673
2,427
7,795
7,979
16,375
28,426
11,397
33,474
11,223
51,145
6,279
36,518
5,383
37,230
11,399
97,142
14,379
136,061
N um ber o f banks, Decem ber 3 1 ..........................
13,101
1,606
2,758
4,345
2,144
1,369
433
209
192
45
NoteJ Due to rounding^ differences, components may not add precisely to the indicated totals.
1 This group of banks is the same as the group shown in Table 110 under the heading “ Operating throughout the year.”
* Asset and liability items are as o f December 31, 1956.
Back figures, 194.1-1955: See the Annual R eport for 1955, pp. 142-143, and earlier reports.
t3
BANKS
N um ber of active officers, Decem ber 3 1 ...........
N um ber o f other em ployees, Decem ber 3 1 . . . .
OF INSURED
13,553
805,626
761,715
43,911
DIVIDENDS
2,004,771
T a xes o n n e t in c o m e — t o t a l ............................
Federal....................................................................
S ta te........................................................................
EARN INGS. E XPEN SES, AND
N e t p r o fits b e fo re in c o m e ta x e s .....................
Table 113.
R a t i o s o f E a r n i n g s , E x p e n s e s , a n d D iv id e n d s o f I n s u r e d C o m m e r c ia l B a n k s O p e r a t i n g T h r o u g h o u t
i n t h e U n i t e d S t a t e s (C o n t i n e n t a l U . S. a n d O t h e r A r e a s )
1956
h-
BANKS GROUPED ACCORDING TO AM OUNT OF DEPOSITS
Cft
Banks with deposits of— 2
Earnings or expense item
Ail
banks1
$100.00
21.96
3.53
62.01
4.60
$100.00
23.74
4.27
60.30
4.84
$100.00
23.73
5.60
59.40
5.69
$100.00
22.67
6 .1 1
58.82
7.05
$100.00
21.76
5.46
58.48
7.68
$100.00
21.29
5.26
57.90
7.17
$100.00
19.63
5.09
59.52
6.34
$100.00
17.70
4.77
60.65
4.85
$100.00
14.84
4.98
64.61
3.88
2.34
7.35
6.38
1.52
5.17
1.68
3.59
1.99
2.64
2.71
2.45
4.17
2.24
6.14
2.18
7.24
1.99
10.04
1.98
9.71
C u r r e n t o p e r a tin g expen ses— t o t a l..............
Salaries, wages, and fees...................................
Interest on time and savings deposits...........
Taxes other than on net in com e......................
Recurring depreciation on banking house,
furniture and fixtures.....................................
Other current operating expenses....................
61.56
29.48
11.17
2.60
67.54
38.21
9.23
2.94
65.74
34.73
11.33
3.02
65.71
32.63
13.02
2.87
66.13
31.42
13.58
2.86
66.77
31.13
13.26
2.66
66.30
30.51
13.18
2.76
65.38
30.76
10.95
2.83
61.71
29.67
9.41
2.73
55.70
26.75
10.25
2.27
1.77
16.54
1.53
15.63
1.88
14.78
2.26
14.93
2.42
15.85
2.48
17.24
2.31
17.54
2.15
18.69
1.74
18.16
1 .1 2
15.31
N e t c u r r e n t o p e r a tin g e a r n in g s .....................
38.44
32.46
34.26
34.29
33.87
33.23
33.70
34.62
38.29
44.30
3.33
2.05
1.28
3.73
2.52
1 .2 1
3.57
2.35
1.2 2
3.46
2.27
1.19
3.47
2.29
1.18
3.51
2.34
1.17
3.43
2.27
1.16
3.40
2.22
1.18
3.30
2.04
1.26
3.17
1.76
1.41
Service charges on deposit a ccou nts...............
Other service charges, commissions, fees,
and collection and exchange charges.........
Other current operating earnings....................
A m o u n t s p e r $100 o f t o ta l a ssets2
Current operating earnings— to ta l......................
Current operating expenses— to ta l......................
N et current operating earnings............................
R ecoveries, transfers from reserve accounts,
and profits— to ta l............................................
Losses, charge-offs, and transfers to reserve
N et profits before incom e taxes...........................
N et profits after incom e taxes..............................
M em oran d a
Recoveries credited to reserve accounts (not
included in recoveries above):
On securities.................................... .....................
Losses charged to reserve accounts (not in
cluded in losses above):
.1 1
.10
.08
.06
.05
.05
.07
.06
.10
.17
.46
.93
.56
.25
1.06
.77
.26
1.04
.74
.31
.94
.66
.37
.86
.56
.40
.82
.50
.45
.78
.46
.42
.82
.48
.45
.91
.52
.55
1.03
.59
(3)
.02
.02
(3)
.02
(3)
.02
(*)
.03
(8)
.02
(3)
.02
(*)
.02
(*)
.02
(*)
.02
.04
.06
(3)
.04
(3)
.04
(3)
.05
(3)
.06
.01
.05
.0 1
.05
.03
.05
.04
.04
.09
.07
C O RPORATION
$100.00
18.56
5.13
61.27
5.35
A m o u n t s p e r $100 o f c u r r e n t
o p e r a tin g ea rn in g s
C u r r e n t o p e r a t in g ea rn in g s — t o t a l ..............
Interest on U . S. Governm ent o b lig a tion s..
Interest and dividends on other securities. . .
$5,000,000 $1 0 ,000,000 $25,000,000 $50,000,000 $100,000,000 $500,000,000
to
to
to
to
to
or
$1 0 ,000,000 $25,000,000 $50,000,000 $100,000,000 $500,000,000
more
INSURANCE
$2 ,000,000
to
$5,000,000
DEPOSIT
$1 ,000,000
to
$2 ,000,000
FEDERAL
Less
than
$1 ,000,000
12.85
14.26
15.70
16.79
17.55
17.92
18.43
18.09
.89
.83
.80
.78
.84
1.0 2
.91
1.51
2.20
2.29
9.76
2.66
7.10
2.48
4.62
2.79
10.89
3.07
7.82
2.69
5.13
3.73
11.33
3.42
7.91
2.87
5.04
4.98
11.50
4.04
7.46
2.93
4.53
5.79
11.84
4.63
7.21
3.01
4.20
6.74
11.83
4.83
7.00
3.19
3.81
6.42
12.41
5.09
7.32
3.50
3.82
6.66
13.28
5.70
7.58
3.87
3.71
7.03
13.26
5.62
7.64
4.71
2.93
.02
.27
.17
(3)
.22
(*)
.29
.01
.37
(»)
.34
.01
.32
(*)
.31
.02
.23
.03
.23
.60
.77
(3)
.32
.01
.45
.02
.61
.05
.78
.12
.75
.17
.79
.53
.80
.55
.58
1.1 1
.94
6.20 I
12.59
5.06
7.53
3.84
3.69
4.88
6.30
6.01
5.81
5.70
5.53
5.25
5.20
4.83
4.32
2.30
2.36
2.36
2.37
2.35
2.34
2.29
2.27
2.28
2.28
2.30
.27
2.24
.25
2.18
.27
2.15
.32
2 .11
.41
2.07
.45
2.15
.40
2.19
.32
2.36
.22
2.56
.18
1.53
1.49
1.45
1.50
1.50
1.53
1.63
100.00
22.41
26.80
7.40
41.74
1.65
100.00
22.04
34.71
5.89
36.77
.59
100.00
20.47
35.89
7.01
35.87
.76
100.00
19.96
34.66
9.01
35.41
.96
100.00
19.54
33.50
10.04
35.76
1.16
100.00
19.60
32.64
9.27
37.12
1.37
100.00
20.29
31.95
8.41
37.87
1.48
100.00
22.17
29.47
7.90
38.94
1.52
100.00
24.60
25.67
6.66
41.50
1.57
100.00
23.63
20.66
6.19
47.38
2.14
L ia b ilitie s a n d ca p ita l— t o t a l ..........................
Total deposits.......................................................
Demand deposits...............................................
Time deposits....................................................
Borrowings and other liabilities......................
Total capital accou nts........................................
100.00
90.95
66.83
21*.12
1.66
7.39
100.00
88.92
67.85
21.07
.22
10.86
100.00
90.17
61*.17
26.00
.31
9.52
100.00
91.28
61.79
29.1*9
.39
8.33
100.00
91.90
60.30
S I.60
.62
7.48
100.00
92.17
60.09
32.08
.88
6.95
100.00
92.36
62.13
S0.23
1.05
6.59
100.00
92.25
67.1*5
2I*.80
1.18
6.57
100.00
91.84
71.52
20.32
1.30
6.86
100.00
89.38
69.38
20.00
2.85
7.77
N um ber o f banks, D ecem ber 3 1 ..........................
13,101
1,606
2,758
4,345
2,144
1,369
433
209
192
45
1 This group of banks is the same as the group shown in Table 110 under the heading “ Operating throughout the year.” These ratios differ slightly from the ratios for all insured
commercial banks shown in Tables 109 and 1 1 1 .
2 Asset and liability items are as of Decem ber 31, 1956.
1 Less than .005.
Back figures, 191*1-1955: See the Annual Report for 1955, pp. 144-145, and earlier reports.
BANKS
1.56
INSURED
1.64
OF
1.54
A ssets a n d lia b ilitie s p er $100 o f
t o t a l a ssets2
A ssets— t o t a l ...........................................................
Cash and due from b an k s.................................
United States Governm ent obligations.........
Other securities.....................................................
Loans and discounts...........................................
All other assets.....................................................
DIVIDEN DS
S p e cia l r a tio s 2
Incom e on loans per $100 of loans......................
Incom e on U . S. Government obligations per
$100 of U . S. Governm ent obligations___
Incom e on other securities per $10 0 o f other
securities.............................................................
Service charges per $10 0 o f demand d e p o sits..
Interest paid per $10 0 of tim e and savings
deposits...............................................................
11.16
1.50
E X P E N S E S , AND
M em oran d a
Recoveries credited to reserve accounts (not
included in recoveries above):
On securities..........................................................
On loans.................................................................
Losses charged to reserve accounts (not in
cluded in losses above):
On securities..........................................................
On loans.................................................................
17.29
E A R N IN G S ,
A m o u n t s p e r $10 0 o f t o t a l c a p ita l
a ccou n ts2
N et current operating earnings............................
Recoveries, transfers from reserve accounts,
and profits— to ta l............................................
Losses, charge-offs, and transfers to reserve
accounts— to ta l................................................
N et profits before income taxes...........................
Taxes on net incom e...............................................
N et profits after incom e taxes..............................
Cash dividends declared.........................................
N et additions to capital from profits.................
T a b le 114.
E a r n in g s , E x p e n s e s , a n d D iv id e n d s o f I n s u r e d C o m m e r c ia l B a n k s
U n it e d St a t e s (C o n t in e n t a l U . S. a n d O t h e r A r e a s ), b y S t a t e , 195 6
(Amounts in thousands o f dollars)
in
th e
___________________________________________________________________________________________
Earnings or expense Item
Other areas
U . S.
(continental
U . S .a n d
other
areas)
Alaska
Puerto
R ico
Continental
United
States
Other1
Alabama
Arizona
Arkansas
California
Colorado
Connec
ticut
7,211,080
1,340,309
368,860
4,327,104
72,933
384,990
64,138
11,698
4,170
39,005
366
3,666
37,359
4,849
1,710
23,978
909
2,875
37,017
7,260
2,971
20,943
83
2 ,2 10
811,064
126,062
35,525
512,802
19,481
57,769
63,844
12,686
1,811
38,399
729
5,561
88,758
15,110
4,267
49,991
472
5,605
168,497
322,117
229,068
745
51
140
1,417
8
189
176
70
166,159
322,058
228,669
1,905
1,478
1,851
899
715
1,424
2,297
339
914
15,213
24,473
19,738
1,311
2,027
1,323
1,756
8,422
3,136
C u r r e n t o p e r a t in g exp en ses— t o t a l ..............
Salaries— officers..................................................
Salaries and wages— em ployees........................
Fees paid to directors and members of execu
tive, discount, and other com m ittees.. . .
Interest on time and savings deposits...........
Interest and discount on borrowed m o n e y ..
Taxes other than on net incom e....................
Recurring depreciation on banking house,
furniture and fixtures.....................................
Other current operating expenses....................
4,457,198
720,866
1,372,262
4,508
893
1,569
9,331
1,325
2,739
1,900
276
553
4,441,459
718,372
1,367,401
38,402
8,263
11,065
26,076
4,063
8,986
23,381
5,986
5,593
512,827
60,915
166,238
39,909
7,714
11,913
59,431
10,008
19,354
42,614
805,857
45,392
187,526
26
501
122
113
1,813
171
557
42
431
3
44
42,433
803,112
45,218
186,803
490
5,420
146
730
62
3,452
57
687
565
2,987
38
945
1,054
145,956
4,211
19,355
540
7,017
353
805
561
8,457
467
1,851
128,085
1,154,600
224
1,174
319
2,295
62
489
127,480
1,150,642
1,355
10,930
1,066
7,704
819
6,449
10,926
104,173
961
10,607
1,656
17,078
N e t c u r r e n t o p e r a t in g e a r n in g s .....................
2,774,724
2,151
2,428
524
2,769,621
25,737
11,282
13,635
298,237
23,935
29,326
250,171
137
60
58
249,916
1,051
516
771
17,755
1,246
1,215
9
66
221
96
7
51
65
2,060
6,971
2,033
137
1
14,090
40,986
31,127
75
106
69
139
20,682
77,546
65,486
285
152
320
36
300
84
432
89
127
614
1,128
4,949
657
144
234
123
326
452
Other current operating earnings....................
R e co v e r ie s , tra n s fe rs fr o m reserve a c
c o u n t s , a n d p ro fits — t o t a l ........................
On securities:
R ecoveries..........................................................
Transfers from reserve accounts.................
Profits on securities sold or redeem ed. . . .
On loans:
R ecoveries..........................................................
Transfers from reserve a ccou nts.................
L o s se s , c h a r g e -o ffs , a n d tra n s fe rs t o r e
serve a c c o u n t s — t o t a l .................................
On securities:
Losses and charge-offs....................................
Transfers to reserve accounts......................
On loans:
Losses and charge-offs....................................
Transfers to reserve accounts......................
All oth er.................................................................
DigitizedNfor
FRASER
et p
r o fits b e fo r e in c o m e ta x e s .....................
14,090
41,001
31,151
14
4
20
20,762
77,606
65,563
48
23
49
13
27
32
24
1
993,534
935
295
91
992,213
7,779
2,289
4,642
67,482
7,853
11,375
317,381
101,830
313
1
26
1
37
317,066
101,767
3,104
27
974
2,480
76
13,346
18,526
1,801
10
2,549
634
32,018
452,940
89,369
66
521
23
107
138
15
30
9
31,914
452,282
89,187
437
3,472
740
18
1,099
198
353
1,420
814
1,026
28,650
5,936
662
3,694
1,686
265
5,748
2,179
2,193
491
2,027,324!
19,008
9,509
9,765
248.509
17,328
19,167
1
2,031,360 |
8 5
1,352
C O R PORATION
2,424
479
125
1,374
37
162
INSURANCE
11,759
738
788
8,027
282
312
DEPOSIT
6,658
1,316
272
3,361
310
463
FEDERAL
7,231,921
1,342,842
370,045
4,339,866
73,562
385,927
C u r r e n t o p e r a t in g e a rn in g s — t o t a l ..............
Interest on U . S. Governm ent ob lig a tion s ..
Interest and dividends on other securities. .
Interest and discount on loans.........................
Service charges and fees on bank's loans----Service charges on deposit a ccou nts...............
Other service charges, commissions, fees,
and collection and exchange charges..........
i
814,636
769,843
44,793
N e t p ro fits a fte r in c o m e ta x e s ........................
D iv id e n d s a n d in te re s t o n c a p ita l— t o t a l . .
Dividends declared on preferred stock and
interest on capital notes and debentures. .
Cash dividends declared on com m on s t o c k ..
2,389
614,501
275
N et a d d it io n to c a p ita l fr o m p r o fit s ...........
599,835
518
M e m o ra n d a
Recoveries credited to reserve accounts (not
included in recoveries a b ov e):
On securities..........................................................
On loans.................................................................
Losses charged to reserve accounts (not in
cluded in losses above):
On securities..........................................................
On loans.................................................................
3,332
42,717
139
95,505
123,529
150
150
813,641
768,954
44,687
7,372
6,618
754
4,147
3,894
253
1,216,725
794
1,907
341
1,213,683
11,636
616,890
275
848
109
615,658
5,075
848
109
2,389
613,269
5,075
1,060
232
598,025
6,561
234
6
3,332
42,338
259
164
35
33
A verage a ssets a n d lia b ilitie s 3
A ssets— t o t a l ........................................................... 209,712,780
Cash and due from b an k s................................. 45,728,691
United States Government obligations......... 58,257,149
Other securities..................................................... 16,179,498
Loans and discounts............................................ 86,291,628
All other assets.....................................................
3,255,814
143,019
28,252
57,276
12,531
42,518
2,442
L ia b ilitie s a n d c a p ita l— t o t a l .......................... 209,712,780
T otal deposits....................................................... 190,786,522
189,690,*32
Time and savings deposits.............................. 51,096,090
Borrowings and other liabilities.......................
3,372,960
T otal capital a ccou nts........................................ 15,553,298
2.871
2.871
110,603
102,422
8,181
8,470
7,803
667
7,906
6,944
962
5,362
6,893
137,906
8,858
11,261
2,716
2,913
76,632
4,327
7,226
2,716
2,913
50
76,581
4,327
7,226
2,646
3,980
61,275
4,530
4,035
394
649
5
12 2
692
4,998
6
1,166
396
95,470
123,073
4
884
940
6
514
21,353
9,851
14
2,090
704
1,236
248,281
38,038
35,785
33,701
131,742
9,015
61,620 209,259,860
11,017 45,651,384
20,125 58,143,963
4,264 16,129,002
24,895 86,092,473
1,319
3,243,038
1,819,710
434,991
502,111
196,770
662,704
23,134
862,210
153,765
212,738
72,571
399,105
24,031
1,111,958 20,954,173
282,868 3,666,228
305,624 5,503,842
123,069 1,599,630
388,863 9,812,153
11,534
372,320
1,726,031
414,184
533,635
79,021
682,633
16,558
2,370,858
483,679
673,151
242,876
936,937
34,215
143,019
135,475
85,750
*9,725
626
6,918
248,281
218,369
116,*67
101,902
10,297
19,615
61,620 209,259,860
56,594 190,376,084
28,628 139,*59,587
27,966 50,916,*97
577
3,361,460
4,449 15,522,316
1,819,710
1,666,042
1,303,8*8
362,19*
15,450
138,218
862,210
791,405
58*,623
206,782
13,423
57,382
1,111,958 20,954,173
1,019,393 19,150,275
8*3,660 10,8*3,836
175,733 8,306,*39
4,013
497,102
88,552 1,306,796
1,726,031
1,589,975
1,199,*06
390,569
15,975
120,081
2,370,858
2,169,417
1,66*,*56
50*,961
26,508
174,933
88,462
433,563
79
389
236
1,205
39
206
88,108
431,763
1,146
4,132
467
2,870
1,016
2,169
7,086
46,491
1,005
3,991
1,027
6,258
N um ber o f banks, Decem ber 3 1 ..........................
13,218
12
7
5
13,194
237
9
231
132
156
85
BANKS
N um ber of active officers, Decem ber 3 1 ...........
N um ber of other em ployees, Decem ber 3 1 . . . .
OF INSURED
286
190
96
DIVIDENDS
559
549
10
EARNINGS, EXPENSES, AND
T a x e s o n n e t in c o m e — t o t a l ............................
F ederal....................................................................
S ta te........................................................................
N ote: Due to rounding differences, com ponents may not add precisely to the indicated totals.
1 Includes 3 banks in Hawaii, and 2 banks in the Virgin Islands, not members of the Federal Reserve System.
*
Asset and liability items are averages of figures reported at beginning, middle, and end of year, adjusted to exclude data for 2 insured branches as o f December 31, 1956 in
Guam of an insured bank in California and insured branches (12 as of December 31, 1956, 12 as of June 30, 1956, and 9 as of December 31, 1955) in Puerto Rico of insured banks
In N ew York; earnings data of these branches are not available.
Back figures, 19*6-1955: See the Annual Report for 1955, p p. 146-155, and earlier reports.
CO
Table 114.
U n ite d
E a r n i n g s , E x p e n s e s , a n d D iv id e n d s o f I n s u r e d C o m m e r c ia l B a n k s in t h e
S t a t e s ( C o n t i n e n t a l U . S. a n d O t h e r A r e a s ) , b y S t a t e , 1956— Continued
(Amounts in thousands of dollars)
Delaware
Earnings or expense item
District of
Columbia
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
103,516
14,787
4,128
64,226
1,286
6,284
22,646
4,794
635
14,276
324
1,582
501,602
130,227
32,115
265,839
4,813
20,746
147,025
40,794
5,480
81,506
730
6,867
97,968
22,322
4,967
58,575
319
6,198
68,870
16,376
5,204
37,804
418
5,005
69,998
15,487
2,835
43,152
584
2,665
88,659
20,865
5,426
48,831
419
5,198
177
3,993
280
1,517
2,880
1,186
3,662
2,910
4,227
5,444
3,196
4,167
415
113
509
7,239
28,301
12,322
3,270
3,633
4,744
2,641
952
1,996
1,326
654
2,083
914
2,752
1,609
3,753
897
3,270
C u r r e n t o p e r a t in g exp en ses— t o t a l ..............
Salaries— officers..................................................
Salaries and wages— em ployees.......................
Fees paid to directors and members of execu
tive, discount, and other com m ittees. . . .
Interest on time and savings deposits...........
Interest and discount on borrowed m oney. .
Taxes other than on net in com e....................
Recurring depreciation on banking house,
furniture and fixtures.....................................
Other current operating expenses....................
13,713
2,757
4,699
31,917
5,060
10,670
81,179
13,715
25,092
69,793
12,866
18,562
14,461
3,113
3,846
293,627
47,982
88,388
95,014
17,291
26,764
61,439
16,490
13,868
42,813
12,023
10,280
41,363
9,537
10,996
55,578
1 0 ,1 2 1
15,666
215
1,346
118
349
341
5,128
169
1,967
990
10,857
308
2,284
925
9,110
495
4,231
93
3,153
5
271
2,744
56,872
5,142
11,890
1,346
16,723
187
6,503
724
11,285
284
2,088
710
5,240
90
1,929
793
4,920
273
2,612
795
6,721
642
4,701
495
3,735
1 ,1 2 2
7,462
4,139
23,795
2,488
21,116
539
3,444
5,975
74,634
2,568
23,634
1,580
15,121
1,071
11,470
1,177
11,056
1,676
15,257
N e t c u r r e n t o p e r a t in g e a r n in g s .....................
11,364
17,662
48,237
33,723
8,186
207,974
52,010
36,528
26,057
28,634
33,082
882
Other current operating earnings....................
R e co v e r ie s , tra n s fe rs fr o m reserve a c
c o u n t s , a n d p r o fits — t o t a l ........................
On securities:
Recoveries
.......................................
Transfers from reserve accounts
. ...
Profits on securities sold or redeem ed. . . .
On loans:
Transfers from reserve accounts
...
L o sse s, c h a r g e -o ffs , a n d tra n sfers t o r e
serve a c c o u n t s — t o t a l .................................
On securities:
Losses and charge-offs....................................
Transfers to reserve accounts
........
On loans:
Losses and charge-offs....................................
Transfers to reserve accounts......................
N e t p ro fits b e fo r e in c o m e ta x e s .....................
296
1,169
1,12 0
110
17,985
6,285
2,273
1,382
926
3,572
354
2
67
62
2
315
3
23
51
28
194
23
3,030
5,994
2,661
1,726
2,039
222
510
28
305
49
43
76
32
22
144
131
1,489
148
18
373
68
63
42
169
151
202
542
359
78
306
49
1,096
1,278
3,926
605
862
833
403
350
677
867
103
244
239
290
200
191
635
979
2,786
3,358
13,226
12,711
4,205
88,119
23,121
10,922
6,907
7,488
9,917
657
332
862
238
4,454
92
7,560
158
2,269
41,427
6 ,2 1 1
9,991
2,028
6,316
32
2,354
111
2,340
1,0 2 1
2,157
1,510
37
1,528
233
12 1
1,933
203
455
7,496
728
498
3,251
1,243
89
1,236
611
1,045
32,368
7,069
761
6,173
4,168
794
2,905
875
1,392
1,845
1,205
524
2,887
716
480
4,349
1,421
9,459
14,601
36,181
22,134
4,091
137,840
35,174
27,880
20,533
22,072
26,737
35
C O R P O R A T IO N
129,416
30,303
6,079
69,162
2,145
10,929
INSURANCE
49,580
10,421
1,660
27,987
486
3,443
DEPOSIT
25,078
4,288
875
14,596
343
525
C u rre n t o p e r a tin g e a rn in g s — t o t a l ..............
Interest on U . S. Government obligations. .
Interest and dividends on other securities. .
Interest and discount on loans.........................
Service charges and fees on bank’ s loans. . . .
Service charges on deposit a ccou nts...............
Other service charges, commissions, fees,
and collection and exchange charges.........
8.796
8.796
2,329
2,088
240
49.024
49.024
13.779
13.779
9.449
9.449
6.758
6.758
8.290
8.290
9.604
9.604
N e t p r o fits a fte r i n c o m e t a x e s ........................
5,174
7,708
22,422
13,338
1,762
88,817
21,396
18,430
13,775
13,782
17,133
D iv id e n d s a n d in te re s t o n c a p ita l— t o t a l ..
Dividends declared on preferred stock and
interest on capital notes and debentures. .
Cash dividends declared on com m on s to c k . .
3.199
4.449
6,677
7.456
1.536
35,642
7,582
6,794
4,352
5,313
4,956
3.199
4.449
10
6,667
7.456
1.536
68
35,574
8
7,573
28
6,766
3
4,349
4
5,309
1
4,955
N e t a d d it io n t o ca p ita l fr o m p r o fit s ...........
1,975
3,259
15,745
5,882
227
53,175
13,814
11,637
9,423
8,469
12,177
M e m o ra n d a
Recoveries credited to reserve accounts (not
included in recoveries a b o v e ):
On securities..........................................................
On loa n s.................................................................
Losses charged to reserve accounts (not in
cluded in losses above):
On securities..........................................................
On loans.................................................................
151
110
12
389
749
58
27
2,881
4
1,023
3
576
824
140
328
12
236
371
473
362
302
51
2,083
23
1,271
1
172
4,769
11,520
2,623
2,046
1,437
16
1,257
2,173
736
689
816
A verage a ssets a n d lia b ilitie s 1
A ssets— t o t a l ...........................................................
Cash and due from ban k s.................................
United States Governm ent obligations.........
Other securities....................................................
Loans and discounts............................................
All other assets.....................................................
670,916
111,652
217,765
26,946
304,790
9,763
1,512,398
349,720
462,578
66,087
606,745
27,268
3,736,264
935,095
1,258,569
267,084
1,211,589
63,927
2,564,625
644,274
619,668
158,150
1,103,531
39,002
574,119 16,803,274
98,999 3,601,648
194,927 5,659,618
26,233 1,454,788
246,693 5,969,097
118,123
7,267
4,491,031
943,614
1,756,385
267,633
1,478,124
45,275
2,835,419
536,877
895,636
252,598
1,129,205
21,103
2,102,568
488,337
671,924
245,832
680,594
15,881
2,144,369
529,830
687,963
109,295
799,395
17,886
2,820,718
747,050
883,730
244,565
906,951
38,422
L ia b ilitie s a n d ca p ita l— t o t a l ..........................
T otal deposits.......................................................
Demand deposits...............................................
Time and savings deposits..............................
Borrowings and other liabilities.......................
Total capital accou nts........................................
670,916
601,033
489,467
111,566
7,435
62,448
1,512,398
1,389,882
1,068,887
320,995
15,198
107,318
3,736,264
3,467,899
2,737,815
780,584
33,984
234,381
2,564,625
2,333,310
1,870,184
463,126
31,717
199,598
574,119 16,803,274
537,651 15,536,575
867,998 11,336,242
169,658 4,200,338
3,632
139,108
32,836 1,127,591
4,491,031
4,165,424
2,977,377
1,188,047
35,422
290,185
2,835,419
2,602,972
1,899,268
703,704
7,329
225,118
2,102,568
1,938,943
1,640,657
298,286
8,020
155,605
2,144,369
1,960,366
1,610,106
350,260
15,199
168,804
2,820,718
2,621,792
2,199,541
422,251
26,944
171,982
Num ber of active officers, December 3 1 ...........
Num ber of other em ployees, D ecem ber 3 1 . . . .
298
1,562
457
3,271
1,798
9,200
1,758
6,380
364
1,369
5,325
26,665
2,353
9,311
2,452
5,334
1,979
3,946
1,624
4,330
1,198
5,400
N um ber of banks, D ecem ber 3 1 ..........................
27
17
256
352
33
922
463
622
548
352
179
Note: Due to rounding differences, components may not add precisely to the indicated totals.
1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
Back figures, 1946-1955: See the Annual Report for 1955, pp. 146-155, and earlier reports.
BANKS
13.758
13.758
OF INSURED
6.893
6.893
DIVIDENDS
4.285
4.285
EARNINGS, EXPENSES, AND
T a xes o n n e t in c o m e — t o t a l ............................
Federal....................................................................
S ta te ........................................................................
114.
E a r n i n g s , E x p e n s e s , a n d D i v i d e n d s o f I n s u r e d C o m m e r c ia l B a n k s in t h e
U n i t e d S t a t e s ( C o n t i n e n t a l U . S. a n d O t h e r A r e a s ) , b y S t a t e , 1956— Continued
(Amounts in thousands of dollars)
T a b le
Earnings or expense item
M aine
Maryland Massachusetts Michigan M in n esota Mississippi
Missouri
M ontana
Nebraska
New
Hampshire
N evada
292,347
142,829
39,313
181,665
28,782
50,874
13,048
29,920
7,386
118,251
900
12,451
13,236
70,285
14,340
170,952
2,124
15,012
26,187
7,428
83,413
1,129
8,726
7,202
3,737
21,476
10 1
2,173
37,516
9,710
113,951
666
8 ,1 1 0
6,408
1,497
16,287
401
2,174
11,674
2,566
29,966
96
3,181
2,699
418
7,848
481
741
2,037
611
8,628
59
1,147
428
647
459
1,399
1,883
2,145
6,247
17,048
9,024
6,059
8,166
5,410
8,539
3,815
3,594
3,209
267
1,151
2,826
4,467
4,421
864
133
1,017
1,139
636
1,615
226
356
281
240
173
341
C u r r e n t o p e r a tin g exp en ses— t o t a l ..............
Salaries— officers..................................................
Salaries and wages— em ployees.......................
Fees paid to directors and members of execu
tive, discount, and other com m ittees.. . .
Interest on time and savings deposits...........
Interest and discount on borrowed m on ey . .
Taxes other than on net in com e....................
Recurring depreciation on banking house,
furniture and fixtures.....................................
Other current operating expenses....................
16,180
44,886
118,648
187,817
92,618
26,155
105,115
17,991
31,131
8,438
6,470
14,312
18,930
42,581
24,474
61,706
8,922
2,472
4,595
19,978
24,078
6,280
6,598
20,348
31,548
3,686
4,599
9,225
7,891
1,496
2,830
1,532
2,144
231
3,586
57
684
640
7,825
300
2,375
1,0 0 1
9,906
945
4,383
1,477
39,611
1,605
9,393
1,287
18,346
1,438
1,873
470
2,754
71
1,620
1,324
14,394
775
3,812
158
2,476
66
1,783
579
1,800
394
1,203
15
1,696
1
407
159
1,891
51
294
421
4,135
1,455
11,507
4,344
36,560
5,270
44,283
1,919
23,701
807
7,555
3,358
29,559
503
4,719
888
9,149
273
1,719
278
2,576
N e t c u r r e n t o p e r a t in g e a r n in g s .....................
7,240
25,653
82,578
104,530
50,211
13,160
76,550
10,791
19,744
4,611
4,313
508
886
11,192
10,921
2,853
1,178
4,928
1,640
1,299
45
254
43
68
55
300
86
799
1,326
447
133
1,255
927
413
512
260
148
243
55
112
561
1,160
141
312
63
221
18
52
9
54
25
66
82
34
281
116
124
206
650
3,945
4,025
255
6,807
1,545
910
69
688
289
146
298
588
2,096
411
777
261
85
355
172
480
35
36
12
61
2,648
7,606
33,784
39,418
15,297
5,512
21,800
5,682
6,484
542
1,686
951
8
3,777
198
11,269
1,277
12,485
3,974
7,821
97
2,019
476
10,424
1,651
2,123
801
2,580
424
134
806
110
72
1,235
383
115
2,524
992
105
14,802
6,332
827
19,125
3,006
960
4,680
1,739
349
2,058
610
888
6,167
2,670
666
1,751
340
574
1,944
961
1
330
77
61
520
189
5,099
18,934
59,985
76,034
37,766
8,826
59,679
6,748
14,558
4,115
2,880
R e c o v e r ie s , tra n s fers f r o m reserve a c
c o u n t s , a n d p r o fits — t o t a l ........................
On securities:
R e c o v e r ie s ........................................................
Transfers from reserve a ccou nts.................
Profits on securities sold or redeem ed. . . .
On loans:
R ecoveries..........................................................
Transfers from reserve accou nts.................
All oth er.................................................................
L o sse s, c h a r g e -o ffs , a n d tra n sfe rs to r e
serve a c c o u n t s — t o t a l .................................
On securities:
Losses and charge-offs....................................
Transfers to reserve accounts......................
On loans:
Losses and charge-offs....................................
Transfers to reserve accounts......................
All o th er.................................................................
N e t p ro fits b e fo r e in c o m e ta x e s .....................
1
CORPORATION
201,225
16,248
3,241
39,964
295
5,365
INSURANCE
70,539
4,192
845
15,255
109
1,484
DEPOSIT
23,420
FEDERAL
C u r r e n t o p e r a tin g ea rn in g s — t o t a l ..............
Interest on U . S. Governm ent ob lig a tion s..
Interest and dividends on other securities. .
Interest and discount on loans.........................
Service charges and fees on bank’s loans___
Service charges on deposit accou nts...............
Other service charges, commissions, fees,
and collection and exchange charges..........
Trust departm ent................................................
Other current operating earnings....................
2.167
2.167
N e t p ro fits a fte r i n c o m e t a x e s ........................
2,933
D iv id e n d s a n d in te r e s t o n ca p ita l— t o t a l . .
Dividends declared on preferred stock and
interest on capital notes and debentures..
Cash dividends declared on com m on s to c k . .
1,589
14,694
28.391
2.265
12,522
2,172
23,662
840
2,915
5.481
2.265
2,854
61
5.481
11,127
34,058
47,643
23,072
6,561
35,177
3,833
5,373
20,297
19,631
11,068
2,692
13,985
2.432
5
1,584
13
5,360
14
20,283
124
19,507
11,068
20
2,672
34
13,951
2.432
3,847
1.196
833
N e t a d d it io n to c a p ita l fr o m p r o fit s ...........
1,345
5,754
13,762
28,012
12,004
3,869
21,192
1,401
5,229
958
1,121
M e m o ra n d a
Recoveries credited to reserve accounts (not
included in recoveries above):
On securities..........................................................
On loans.................................................................
Losses charged to reserve accounts (not in
cluded in losses above):
On securities..........................................................
On loans.................................................................
104
191
43
1,232
719
1,893
543
35
347
13
1,183
291
588
97
51
4
388
148
584
1,813
3,897
4,464
6,219
10
987
71
577
2,601
1,902
553
841
1,199
284
141
A verage assets a n d lia b ilitie s 1
A ssets— t o t a l ...........................................................
Cash and due from ban k s.................................
United States Governm ent obligations.........
Other securities.....................................................
Loans and discounts............................................
All other assets.....................................................
587,182
104,978
175,425
39,885
257,841
9,053
2,158,384
5,336,845
455,540
721,696
157,493
790,939
32,716
1,196,781
1,298,435
330,691
2,417,472
93,466
8,372,555
3,806,038
1,506,158
2,987,287
680,213
3,097,438
101,459
1,080,304
773,611
1,068,041
329,961
1,593,953
40,472
252,480
283,650
154,946
375,546
13,682
5,826,527
749,056
1,456,185
1,634,505
417,838
2,261,327
56,672
154,153
256,507
j 61,987
267,342
9,067
1,567,761
318,384
333,276
69,669
84,973
26,186
148,765
3,683
L ia b ilitie s a n d c a p ita l— t o t a l ..........................
T otal deposits........................................................
Demand deposits...............................................
Time and savings deposits..............................
Borrowings and other liabilities.......................
T otal capital a ccou n ts........................................
587,182
530,807
814,804
216,003
5,801
50,574
2,158,384
1,990,620
1,460,566
530,054
17,270
150,494
5,336,845
4,767,267
4,048,936
718,331
102,109
467,469
8,372,555
7,741,770
4,578,400
3,163,370
112,152
518,633
3,806,038
1,080,304
3,475,328
2,357,808
1,117,520
49,250
281,460
995,207
814,091
181,116
5,002
80,095
5,826,527
5,364,272
4,355,782
1,008,490
56,322
405,933
749,056
702,471
555,265
147,206
6,557
40,028
1,567,761
1,432,327
1,273,405
158,922
13,577
121,857
295,295
197,374
97,921
3,702
19,387
333,276
297,905
210,536
87,369
2,527
32,844
Num ber of active officers, Decem ber 31 ...........
N um ber of other em ployees, Decem ber 3 1 . . . .
375
1,816
957
5,165
2,048
14,737
2,555
18,440
2,889
8,549
942
2,462
2,904
11,301
503
1,656
1,402
2,957
204
857
246
833
N um ber of banks, Decem ber 31........................
51
149
167
401
672
193
588
113
382
6
62
Note: Due to rounding differences, components may not add precisely to the indicated totals.
1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
Back figures, 1946-1955: See the Annual Report for 1955, pp. 146-155, and earlier reports.
24,502
1.961
927
1.961
927
9,077
2,154
1,953
3,848
1.196
833
1
364,658
508,192
129,378
552,621
12,912
48,798
113,616
17,898
131,659
6,413
318,384
BANKS
28.391
21,805
4,123
OF INSURED
25,928
7.807
DIVIDENDS
7.807
EARNINGS. EXPEN SES, AND
T a xes o n n e t in c o m e — t o t a l ............................
Federal....................................................................
Table 114.
E a r n i n g s , E x p e n s e s , a n d D iv id e n d s o f I n s u r e d C o m m e r c ia l B a n k s in t h e
U n i t e d S t a t e s ( C o n t i n e n t a l U . S. a n d O t h e r A r e a s ) , b y S t a t e , 1 9 5 6 — C o n t in u e d
(Amounts in thousands of dollars)
___________________________________ ___ __________________________________________________________________________________________________________________
Earnings or expense item
N ew
Jersey
New
M exico
N ew
York
North
Carolina
North
Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode
Island
South
Carolina
21,528
5,070
987
11,148
140
1,377
353,363
81,931
18,770
200,729
3,279
17,757
82,846
16,037
4,591
50,100
317
6,066
73,522
11,811
4,184
46,257
622
6,086
502,372
85,680
32,706
306,221
3,063
17,549
34,147
4,908
1,542
21,359
23
1,505
33,623
6,910
2,058
18,462
85
2,688
3,061
7,012
6,243
691
174
501
31,002
114,674
58,669
6,408
2,946
2,705
2,256
88
463
5,765
13,100
12,034
1,318
777
3,640
1,363
1,621
1,579
7,184
34,648
15,322
314
2,816
1,680
2,279
541
600
C u r r e n t o p e r a t in g exp en ses— t o t a l ..............
Salaries— officers..................................................
Salaries and wages— em ployees.......................
Fees paid to directors and members of execu
tive, discount, and other com m ittees. . . .
Interest on time and savings deposits...........
Interest and discount on borrowed m oney. .
Taxes other than on net in c o m e ..................
Recurring depreciation on banking house,
furniture and fixtures.....................................
Other current operating expenses....................
161,109
21,730
47,732
13,744
2,698
4,178
793,547
99,474
288,130
61,571
12,460
17,386
12,870
3,427
2,972
217,856
30,288
62,655
49,273
12,090
13,249
47,315
8,033
14,535
303,455
46,280
92,870
22,391
2,693
6,822
20,538
4,802
6,316
1,957
37,081
721
8,104
132
1,877
18
695
4,494
116,566
15,010
20,870
546
9,779
710
1,835
148
2,165
24
361
2,097
45,589
1,774
16,565
546
5,556
624
1,032
172
12,004
290
1,166
4,311
53,894
3,570
13,359
221
5,215
128
1,268
294
1,747
39
387
5,891
37,894
680
3,467
17,772
231,231
2,077
16,780
320
3,452
5,660
53,229
1,919
14,259
1,560
9,555
10,320
78,851
664
5,378
761
6,192
N e t c u r r e n t o p e r a t in g e a r n in g s .....................
65,993
7,077
599,856
36,333
8,657
135,508
33,573
26,208
198,918
11,756
13,085
5,359
Other current operating earnings....................
R e c o v e r ie s, tra n sfers fr o m reserve a c
c o u n t s , a n d p ro fits— t o t a l ........................
On securities:
Recoveries
..............................
Transfers from reserve accounts ...............
Profits on securities sold or redeem ed. . . .
On loans:
Trflnsfors from rcs^rvG sccounts ...............
L o sse s, c h a r g e -o ffs , a n d tra n s fers t o r e
serve a c c o u n t s — t o t a l .................................
On securities:
Losses and charge-offs....................................
T’l'Qncforo f a voQPfVP flPPftUDtR
On loans:
Losses and charge-offs....................................
Transfers to reserve accou nts......................
N e t p ro fits b e fo r e in c o m e t a x e s .....................
219
93,358
2,885
382
8,197
1,541
819
20,115
1,934
194
338
928
1,126
89
5
678
85
30
34
752
998
1,146
9
78
104
157
25
444
12,007
13,393
341
583
888
1,778
719
8
2
3
22
751
1,325
892
99
17
77
2,331
34,770
30,413
297
1,298
518
80
28
126
478
3,817
1,006
894
217
239
284
886
11,562
4,417
12
1,156
39
73
10
85
25,927
2,559
272,513
12,318
3,055
41,855
8,342
4,031
77,312
6,456
3,449
7,506
925
390
73,718
21,176
5,608
62
1,321
34
9,937
6,953
3,319
108
1,382
13,872
26,176
2,764
1,232
444
463
14,438
2,595
312
1,467
389
7,198
157,081
13,341
284
5,400
965
119
1,051
531
598
21,342
3,025
1,331
3,009
575
39
2,296
315
1,000
28,058
8,206
47
2,863
783
106
1,311
357
45,425
4,737
420,701
26,900
5,984
101,850
26,773
22,995
141,720
7,232
9,829
36
C O RPORATION
97,904
15,150
6,186
58,049
1,203
5,257
INSURANCE
1,393,402
191,597
65,078
866,420
14,173
51,792
DEPOSIT
20,822
4,608
430
12,589
167
1,661
FEDERAL
227,102
45,249
16,949
131,392
1,273
15,923
C u rre n t o p e r a t in g ea rn in g s — t o t a l ..............
Interest on U . S. Government ob lig a tion s..
Interest and dividends on other secu rities..
Interest and discount on loans.........................
Service charges and fees on bank’s loans. . . .
Service charges on deposit accou nts...............
Other service charges, com m issions, fees,
and collection and exchange charges.........
00
^
T a xes o n n e t in c o m e — t o t a l ............................
2,160
2,056
104
40.324
40.324
10,026
9,341
685
10,358
8,549
1,808
N e t p r o fits a fte r i n c o m e t a x e s ........................
30,755
2,871
234,733
16,707
3,824
61,527
16,748
D iv id e n d s a n d in te re s t o n c a p ita l— t o t a l ..
14,809
1,116
158,982
6,117
1.914
24,247
6.148
623
14,186
1
1,116
1,154
157,828
1
6,116
1.914
19
24,228
N e t a d d it io n t o c a p ita l fr o m p r o fit s ...........
15,946
1,755
75,751
10,591
1,910
M em oranda
Recoveries credited to reserve accounts (not
included in recoveries above):
On securities.....................................................
On loans.................................... ...............
Losses charged to reserve accounts (not in
cluded in losses above):
On securities.....................................................
On loans............................................................
4
1,719
273
955
7,689
266
1,036
3,003
125
863
8,135
37,073
42
682
6,411,964
1,073,667
1,956,943
770,274
2,513,479
97,601
572,246 42,369,022
154,925 10,026,317
191,005 8,866,062
21,860 2,731,865
196,578 19,788,576
7,878
956,202
Borrowings and other liabilities.....................
Total capital accounts ........................
..................
6,411,964
5,910,756
3,552,061
2,358,695
58,842
442,366
572,246 42,369,022
537,349 37,469,170
1*19,71*6 30,822,688
117,603 6,61*6,1*82
3,481 1,365,813
31,416 3,534,039
N um ber o f active officers, Decem ber 3 1 ...........
N um ber of other em ployees, D ecem ber 3 1 . . . .
2,524
15,086
347
1,480
8,401
77,568
1,632
6,309
539
1,207
N um ber of banks, D ecem ber 3 1 ..........................
273
52
472
213
149
Dividends declared on preferred stock and
interest on capital notes and debentures. .
Cash dividends declared on common stock. .
A vera g e a ssets a n d lia b ilit ie s 1
A ssets— t o t a l ...........................................................
Cash and due from banks...............................
United States Government obligations.........
Other securities................................................
Loans and discounts........................................
All other assets.................................................
L ia b ilitie s a n d c a p ita l— t o t a l ..........................
Total deposits...................................................
Demand deposits...............................................
Time and savings deposits
47.842
47.842
2,514
2,293
221
4,061
3,774
287
12,637
93,879
4,718
5,769
6,188
51,053
2.545
2,622
6.148
6,188
15
51,039
2.545
1
2,621
37,278
10,599
6,449
42,826
2,173
3,148
184
382
1,267
478
395
31
1,958
134
123
270
10,177
2,602
765
1,156
28,582
8,037
945
116
364
2,625,174
620,900
642,520
280,083
1,044,245
37,426
543,944 10,707,156
84,016 2,148,939
205,209 3,480,019
46,432
810,326
202,030 4,140,024
6,257
127,848
2,437,339
685,088
664,298
220,513
839,708
27,732
1,946,779
319,977
565,995
187,828
840,005
32,974
14,043,320
2,804,231
3,663,493
1,320,090
6,034,471
221,035
884,894
143,187
219,808
70,216
436,135
15,548
911,591
219,867
280,380
87,646
313,018
10,680
2,625,174
2,367,284
1,810,502
556,782
59,439
198,451
543,944 10,707,156
499,206 9,874,914
366,897 6,1*92,525
132,309 3,382,389
4,552
101,134
40,186
731,108
2,437,339
2,231,040
1,931,198
299,81*2
16,456
189,843
1,946,779
1,776,338
1,111,21*5
665,093
31,306
139,135
14,043,320
12,494,802
8,763,730
3,731,072
202,812
1,345,706
884,894
805,387
510,21*7
295,11*0
12,364
67,143
911,591
835,574
713,193
122,381
6,683
69,334
3,628
19,909
1,798
4,769
1,093
4,382
5,630
30,062
287
2,384
714
2,362
615
378
49
778
8
139
BANKS
10,193
9,857
336
OF INSURED
185,967
163,861
22,106
DIVIDENDS
1,866
1,866
EARNINGS, EXPENSES, AND
14.669
14.669
Federal..............................................................
S ta te ........................................................................
Note: Due to rounding differences, components may not add precisely to the indicated totals.
1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
Back figures, 194.6-1955: See the Annual Report for 1955, pp. 146-155, and earlier reports.
05
Oi
Table 114.
E a r n i n g s , E x p e n s e s , a n d D iv id e n d s o f I n s u r e d C o m m e r c ia l B a n k s in t h e
U n i t e d S t a t e s ( C o n t i n e n t a l U . S. a n d O t h e r A r e a s ) , b y S t a t e , 1 9 5 6 — C o n t in u e d
(Amounts in thousands of dollars)
CO
_________________________________________________________________________________________________________________________________________________________
Earnings or expense item
South
Dakota
Tennessee
Texas
Utah
Vermont
Virginia
W ashington
West
Virginia
Wisconsin
Wyoming
32,878
5,960
1 ,1 2 2
20,626
1,176
1,809
14,235
2,232
693
9,582
137
841
109,677
19,794
4,652
69,928
812
6,197
101,771
14,469
5,545
63,292
1,152
9,793
43,084
11,246
1,669
25,070
381
1,442
128,248
32,879
6,885
73,521
889
6,596
12,500
3,014
519
7,083
126
862
1,816
155
452
2,680
1,923
2,851
5,237
5,921
17,512
1,014
693
476
197
293
261
2,386
3,630
2,276
2,792
2,455
2,276
933
1,128
1,218
2,126
2,077
3,277
428
66
402
C u r r e n t o p e r a t in g ex p en ses— t o t a l ..............
Salaries— officers..................................................
Salaries and wages— em ployees.......................
Fees paid to directors and members of execu
tive, discount, and other com m ittees.. . .
Interest on time and savings deposits...........
Interest and discount on borrowed m oney. .
Taxes other than on net in com e....................
Recurring depreciation on banking house,
furniture and fixtures.....................................
Other current operating expenses....................
15,455
4,366
3,474
64,094
11,197
16,305
211,975
43,302
57,534
21,158
3,290
5,523
10,433
1,519
2,172
71,353
12,409
18,818
67,525
11,094
22,107
25,188
4,943
6,507
83,902
17,622
21,272
7,883
1,865
1,982
293
2,635
56
357
587
14,041
523
3,801
2,466
22,403
1,576
17,314
248
5,877
92
294
212
3,816
34
199
1,031
16,384
386
3,101
278
12,617
254
1,763
487
4,784
70
1,072
1,492
18,601
613
1,923
136
1,557
28
316
431
3,844
1,996
15,645
8,287
59,093
523
5,314
298
2,184
2,867
16,357
2,560
16,851
967
6,359
2,461
19,917
339
1,660
N e t c u r r e n t o p e r a t in g e a r n in g s .....................
9,052
35,424
128,243
11,720
3,802
38,323
34,246
17,897
44,347
4,618
528
2,546
8,639
633
298
2,348
2,900
633
1,814
323
31
45
44
88
1,062
614
86
2,035
537
3
4
84
57
197
680
444
429
12
169
19
6
67
383
137
449
13
225
48
135
193
173
417
2,907
826
2,249
412
19
115
49
69
118
193
330
503
73
1,623
595
178
55
310
122
140
583
168
42
96
2,964
10,437
40,483
3,881
1,395
11,299
13,551
4,081
20,462
1,207
867
10
3,070
685
8,150
1,385
1,651
499
39
4,697
2 ,112
3,192
1,504
1,737
45
12,716
91
409
458
1,443
188
515
5,119
1,048
4,756
21,385
4,807
127
1,986
117
58
659
141
336
3,335
821
124
5,940
2,791
153
1,635
511
113
6,828
714
200
452
146
6,614
27,533
96,399
8,472
2,703
29,372
23,595
14,449
25,699
3,735
L o s se s , c h a r g e -o ffs , a n d tra n s fers t o r e
serve a c c o u n t s — t o t a l .................................
On securities:
Losses and charge-offs....................................
Transfers to reserve accounts......................
On loans:
Losses and charge-offs....................................
Transfers to reserve accounts......................
All o th e r.................................................................
N e t p r o fits b e fo re in c o m e ta x e s .....................
5
CORPORATION
340,218
56,474
16,906
217,719
2,894
17,557
INSURANCE
99,518
16,705
4,825
66,979
578
2,978
DEPOSIT
24,507
5,889
931
13,517
182
1,565
FEDERAL
C u r r e n t o p e r a tin g e a rn in g s — t o t a l ..............
Interest on U. S. Governm ent ob lig a tion s..
Interest and dividends on other securities. .
Interest and discount on loans.........................
Service charges and fees on bank’s loans___
Service charges on deposit accounts...............
Other service charges, commissions, fees,
and collection and exchange charges.........
Trust departm ent................................................
Other current operating earnings....................
R e co v e r ie s , tra n s fe rs f r o m reserve a c
c o u n t s , a n d p ro fits — t o t a l ........................
On securities:
R ecoveries..........................................................
Transfers from reserve accounts ...............
Profits on securities sold or redeemed
On loans:
R ecoveries..........................................................
Transfers from reserve a ccou nts.................
Oi
2,440
2,316
124
11,195
1 1 ,0 1 2
184
N e t p ro fits a fte r in c o m e t a x e s ........................
4,175
16,337
D iv id e n d s a n d in t e r e s t o n c a p ita l— t o t a l . .
Dividends declared on preferred stock and
interest on capital notes and debentures. .
Cash dividends declared on com m on s to c k . .
1,895
7.398
2
1,893
7.398
N e t a d d it io n to c a p ita l fr o m p r o f it s ...........
2,280
M e m o ra n d a
Recoveries credited to reserve accounts (not
included in recoveries a b ov e):
On securities..........................................................
On loans.................................................................
Losses charged to reserve accounts (not in
cluded in losses above):
On securities..........................................................
On loans..................................................................
37.433
37.433
10.775
10.775
9.525
9.525
58,966
4,687
1,856
18,597
30.200
2,069
866
8,069
30.200
5
2,064
33
833
8,939
28,766
2,617
195
406
116
3,571
353
224
1,016
A verage a ssets a n d lia b ilitie s 1
A ssets— t o t a l ...........................................................
Cash and due from ban k s.................................
United States Governm ent obligations.........
Other securities.....................................................
Loans and discounts...........................................
All other assets.....................................................
625,108
109,344
239,390
39,469
230,996
5,909
L ia b ilitie s a n d ca p ita l— t o t a l ..........................
Total deposits.......................................................
Demand de-posits...............................................
Time and savings deposits..............................
Borrowings and other liabilities.......................
T otal capital a ccou n ts........................................
8,264
7,951
313
1.715
1.715
14,071
8,134
17,436
2,020
6.995
3,235
8,523
882
50
8,019
6.995
1
3,234
94
8,429
6
876
989
10,526
7,076
4,899
8,913
1,138
153
81
548
130
414
159
5
634
127
28
7,252
339
7
183
2,277
1,246
1,609
1,002
287
5
1 ,1 1 2
174
2,857,155
737,239
713,422
199,003
1,166,474
41,017
10,718,412
3,215,735
2,463,866
639,067
4,174,083
225,661
879,461
185,205
255,959
48,362
378,453
11,482
348,629
50,222
91,084
30,404
172,224
4,695
2,942,795
621,959
849,009
205,195
1,220,019
46,613
2,587,730
540.179
617.180
227,295
1,162,752
40,324
1,228,810
267,995
465,378
73,963
406,629
14,845
4,023,781
752,485
1,407,363
318,159
1,503,437
42,337
357,597
84,085
133,389
21,328
115,125
3,670
625,108
575,049
425,643
149,406
3,735
46,324
2,857,155
2,623,983
1,899,925
724,058
28,864
204,308
10,718,412
9,877,058
8,426,490
1,450,568
89,953
751,401
879,461
816,602
542,328
274,274
8,684
54,175
348,629
313,089
131,746
181,343
2,873
32,667
2,942,795
2,689,851
1,743,136
946,715
30,702
222,242
2,587,730
2,378,538
1,669,412
709,126
28,884
180,308
1,228,810
1,104,452
789,900
314,552
10,506
113,852
4,023,781
3,729,854
2,286,084
1,443,770
21,174
272,753
357,597
330,165
247,058
83,107
2,475
24,957
Num ber o f active officers, December 3 1 ...........
Num ber of other em ployees, D ecem ber 3 1 . . . .
703
1,355
1,718
6,140
5,535
19,860
433
1,977
247
817
1,836
6,985
1,306
6,864
730
2,295
2,371
7,850
258
650
N um ber of banks, Decem ber 3 1 ..........................
171
290
917
47
60
312
90
178
545
53
N ote: D ue to rounding differences, com ponents may not add precisely to the indicated totals.
1 Asset and liability items are averages o f figures reported at beginning, middle, and end of year.
Back figures, 1946-1955: See the Annual R eport for 1955, p p. 146-155, and earlier reports.
BANKS
6.315
6.315
OF INSURED
848
754
94
DIVIDENDS
3,785
3,612
173
EARNINGS, EXPEN SES, AND
T a xes o n n e t i n c o m e — t o t a l ............................
F ederal....................................................................
S ta te........................................................................
^
CO
Table 115.
I n c o m e , E x p e n s e s , a n d D i v i d e n d s o f I n s u r e d M u t u a l S a v in g s B a n k s ,
(Amounts in thousands of dollars)
1951-1956
CO
Sources and disposition of income
1951
1952
1953
1954
1955
1956
801,682
898,440
533
431
5,833
4,873
5,184
77
338
261
7,171
6,107
155,869
96,205
447,022
461,769
11,922
2,825
6,642
206
7,746
7,753
150,657
99,190
528,426
545,841
15,623
1,792
7,322
-1 7
247
264
8,171
7,933
146,624
102,590
623,586
645,592
20,475
1,531
8,439
6
103
97
8,328
8,867
Current operating expense— total...........................................................................................................
Salaries—officers...........................................................................................................................................
Salaries and wages—employees..................................................................................................................
Pension, hospitalization and group insurance payments, and other employee benefits......................
Fees paid to trustees and committee members.........................................................................................
Occupancy, maintenance, etc. of bank premises (including taxes and recurring depreciation)—net.
106,654
18,030
37,707
8,939
1,872
11,589
Occupancy, maintenance, etc. o f bank premises {including taxes and recurring depreciation)— gross. .
Less: Income from bank building.......................................................................................................................
18,248
6,659
5,907
2,280
20,330
116,763
19,249
40,996
10,648
2,123
12,162
19,104
6,942
6,203
2,387
22,995
127,336
21,142
44,351
11,566
2,303
13,521
20,926
7,405
6,837
2,445
25,171
139,931
22,870
48,074
12,623
2,526
15,019
22,495
7,476
7,562
2,755
28,502
147,678
24,200
50,879
13,544
2,697
15,094
22,793
7,699
7,979
2,790
30,495
158,317
25,861
53,962
14,643
2,809
17,492
25,380
7,888
8,437
3,058
32,055
Net current operating income..........
407,163
451,735
519,731
581,392
654,004
740,123
Franchise and income taxes— total.
State franchise and income taxes
Federal income taxes...........................
6.094
6.094
9,189
6,962
2,227
8,569
6,459
2,110
10,643
7,231
3,412
9,047
7,818
1,229
8,955
8,321
634
Net current operating income after taxes.
401,069
442,546
511,162
570,749
644,957
731,168
Dividends and interest on deposits............
282,235
365,481
414,951
466,119
536,256
609,335
Net current operating income after taxes and dividends...............................................................
118,834
77,065
96,211
104,630
108,701
121,833
128,790
21,045
57,917
14,893
36,962
12,372
59,228
12,334
44,430
11,586
48,192
10,537
8,567
484
300
2,843
5,243
155
216
240
5,287
783
304
1,489
23,914
389
219
943
18,070
481
3,179
977
17,355
456
413
1,435
11,968
80,676
373
2,534
12,223
24,692
6,132
9,965
275
355
10,858
8,450
126
1,995
1,878
7,710
157
392
4,463
12,501
29
1,003
Interest and discount on real estate mortgage loans— gross.
Less: Mortgage servicing fees...................................................
Premium amortization.....................................................
Interest and discount on other loans and discounts— n e t..
Income on real estate other than bank building— net.........
Income on real estate other than bank building— gross...........
Less: Operating expense..............................................................
Income on other assets...........................................................
Income from service operations..............................................
Deposit insurance assessments.
Furniture and fixtures (including recurring depreciation).
All other current operating expense.....................................
Non-recurring income, realized profits and recoveries credited to profit and loss, and transfers
from valuation adjustment provisions— total............................................................................
Non-recurring income..........^.....................................................................................................................
Realized profits and recoveries on:
Securities sold or matured.....................................................................................................................
Real estate mortgage loans....................................................................................................................
Other real estate.....................................................................................................................................
All other assets........................................................................................................................................
Transfers from valuation adjustment provisions1 on:
Securities..................................................................................................................................................
Real estate mortgage loans....................................................................................................................
Other real estate.....................................................................................................................................
All
other assets........................................................................................................................................
6,046
4,068
102
111
144
4,886
C ORPORATION
721,323
164,630
82,003
381,895
396,264
9,483
INSURANCE
647,067
163,879
62,958
326,785
340,497
7,666
DEPOSIT
568,498
171,169
49,630
279,405
291,790
6.051
6,834
3,878
163
699
536
5.052
4,520
FEDERAL
513,817
Current operating income— total.........................................
Interest on U. S. Government obligations.......................... .
Interest and dividends on other securities............................
Interest and discount on real estate mortgage loans—net. .
00
N o n -r e c u r r in g e x p en se, re a lize d losses ch a r g e d t o p rofit a n d lo ss , and tra n sfers t o v a lu a tio n
124,491
24,724
84,023
23,804
70,507
12,156
65,050
14,279
66,385
10,087
71,580
10,645
25,264
179
20
200
25,875
176
1 10
62
28,333
152
39
106
12,773
112
49
551
21,673
636
10 1
823
26,991
542
171
149
52,574
18,580
37
2,913
14,359
15,474
63
4,100
10,639
17,005
11
2,066
12,403
20,380
7
4,496
10,630
19,219
42
3,174
16,689
16,194
46
153
123,133
50,959
62,666
98,808
86,746
98,445
445
274
15
33
10
1
220
41
23
50
1,151
268
2
24
9
Realized losses on:
Real estate mortgage loans..................................................................................... ............................................
Transfers to valuation adjustment provisions1 on:
Real estate mortgage loans..................................................................................................................................
N e t a d d itio n s to to ta l su rp lu s a c c o u n t s fr o m o p e r a tio n s ........................................................................
M e m o ra n d a
R e co v e r ie s cr e d ite d t o v a lu a tio n a d ju s t m e n t p rov ision s1 (n o t in clu d e d in recoveries above) o n :
Other real estate.........................................................................................................................................................
All other assets............................................................................................................................................................
R ealized losses c h a r g e d t o v a lu a tio n a d ju s t m e n t p rov ision s1 (n o t in clu d e d in realized losses
a bove) o n :
S e cu ritie s.....................................................................................................................................................................
Real estate mortgage loans......................................................................................................................................
Other real estate.........................................................................................................................................................
All other assets............................................................................................................................................................
105
135
69
1
218
9,175
255
294
108
14,581
882
206
616
12,523
469
683
89
7,527
166
234
45
4,250
326
180
326
4,055
318
A verage assets a n d lia b ilitie s 2
A ssets— t o t a l ..................................................................................................................................................................
Cash and due from b an k s........................................................................................................................................
United States Government obligations................................................................................................................
Other securities...........................................................................................................................................................
Real estate mortgage loans......................................................................................................................................
Other loans and discounts........................................................................................................................................
Other real estate.........................................................................................................................................................
All other assets............................................................................................................................................................
16,694,810
662,190
7,292,576
1,662,971
6,764,780
79,331
3,386
229,576
17.905.674
728,979
6,755,471
2,064,761
8,012,488
85,996
2,675
255,304
19,625,429
744,369
6,620,535
2,591,176
9,288,364
102,768
2,432
275,785
21.872.622
874,215
6,755,391
3,015,662
10,802,477
120,350
2,957
301,570
22.740.783
809,152
5,993,243
3,008,656
12,467,355
130,165
2,019
330,193
24.533.839
757,496
5,730,449
3,034,920
14,494,241
155,376
2,197
359,160
L ia b ilitie s a n d su rp lu s a c c o u n t s — t o t a l ............................................................................................................
T otal deposits..............................................................................................................................................................
Savings and time deposits......................................................................................................................................
Demand deposits......................................................................................................................................................
Other liabilities............................................................................................................................................................
Total surplus accounts..............................................................................................................................................
16,694,810
15,000,933
14,982,411
18,522
80,463
1,613,414
17.905.674
16,102,806
16,080,015
22,791
93,253
1,709,615
19,625,429
17,718,957
17,688,777
30,180
119,359
1,787,113
21.872.622
19,738,300
19,694,981
43,319
159,912
1,974,410
22.740.783
20,577,403
20,525,629
51,774
199,228
1,964,152
24.533.839
22,202,156
22,167,537
34,619
249,779
2,081,904
Num ber of active officers, December 3 1 ..................................................................................................................
Num ber of other employees, December 3 1 ..............................................................................................................
1,714
11,530
1,810
11,932
1,908
12,525
1,999
13,227
2,042
13,618
2,130
13,860
Num ber o f banks, December 3 1 .................................................................................................................................
202
206
219
218
220
223
51
1 Includes “ Valuation reserves” and “ Other asset valuation provisions (direct write-downs)” .
* Asset and liability items are averages of figures reported at beginning, middle, and end of year.
Back figures, 1934-1950: Data for 1934-1950, which however are not comparable with figures for 1951-1956, m ay be found in the following Annual Reports: 1950, pp. 272-273,
and 1941, p. 173.
1952
1953
1954
1955
1956
A m o u n t s p er $100 o f c u r r e n t o p e r a t in g in c o m e
C u r r e n t o p e r a tin g in c o m e — t o t a l .....................................................................................................................................
Interest on U . S. Governm ent obligations.......................................................................................................................
Interest and dividends on other securities........................................................................................................................
Interest and discount on real estate mortgage loans— n e t ...........................................................................................
Interest and discount on other loans and discounts— n e t............................................................................................
Incom e on other assets...........................................................................................................................................................
Incom e from service operations...........................................................................................................................................
$100.00
33.31
9.66
54.38
.75
1.02
.88
$100.00
28.83
11.07
57.48
.72
1.04
.86
$100.00
25.44
12.67
59.02
.80
1 .1 2
.95
$100.00
21.61
13.34
61.97
.92
1.09
1.07
$100.00
18.79
12.37
65.92
.91
1.02
.99
$100.00
16.32
11.42
69.41
.94
.92
.99
C u r r e n t o p e ra tin g exp en se— t o t a l ....................................................................................................................................
Salaries— officers.................................................. ....................................................................................................................
Salaries and wages— em ployees............................................................................................................................................
Pension, hospitalization and group insurance paym ents, and other employee benefits.......................................
Fees paid to trustees and com m ittee m em bers...............................................................................................................
O ccupancy, maintenance, etc. of bank premises (including taxes and recurring depreciation)— n e t................
Deposit insurance assessments ...........................................................................................................................................
Furniture and fixtures (including recurring depreciation)............................................................................................
All other current operating expense...................................................................................................................................
20.76
3.51
7.34
1.74
.36
2.26
1.15
.44
3.96
20.54
3.39
7.21
1.87
.37
2.14
1.09
.42
4.05
19.68
3.27
6.85
1.79
.35
2.09
1.06
.38
3.89
19.40
3.17
6.67
1.75
.35
2.08
1.05
.38
3.95
18.42
3.02
6.35
1.69
.34
1.88
.99
.35
3.80
17.62
2.88
6.00
1.63
.31
1.95
.94
.34
3.57
N e t c u r r e n t o p e r a tin g in c o m e ............................................................................................................................................
79.24
79.46
80.32
80.60
81.58
82.38
F ra n c h ise a n d in c o m e taxes— t o t a l ..................................................................................................................................
State franchise and income taxes........................................................................................................................................
Federal income taxes...............................................................................................................................................................
1.18
1.18
1.62
1.23
.39
1.32
1.00
.32
1.47
1.00
.47
1.13
.98
.15
1.00
.93
.07
N et c u r r e n t o p e r a tin g in c o m e a fte r ta x e s ....................................................................................................................
78.06
77.84
79.00
79.13
80.45
81.38
D iv id e n d s a n d in te r e s t o n d e p o s it s ..................................................................................................................................
54.93
64.29
64.13
64.62
66.89
67.82
N e t c u r r e n t o p e r a tin g in c o m e a fte r taxes a n d d iv id e n d s ......................................................................................
23.13
13.55
14.87
14.51
13.56
13.56
CORPORATION
1951
S o u rce s a n d d is p o s it io n o f in c o m e
INSURANCE
1951-1956
o f In c o m e , E x p e n s e s , a n d D iv id e n d s o f I n s u r e d
DEPOSIT
M u t u a l S a v in g s B a n k s ,
R a tio s
FEDERAL
T able 116.
.77
.32
.19
.27
.19
.19
.74
.74
.47
.28
.36
.32
.30
.45
.29
.38
.29
.40
2.35
2.98
4.13
4.89
1.8 8
7.63
2.43
3.05
4.08
4.73
2.27
2.98
2.49
3.16
4.11
5.04
2.35
3.51
2.31
3.19
4.14
5.52
2.37
5.00
2.51
3.30
4.24
5.63
2.61
4.42
2.56
3.38
4.30
5.43
2.75
4.73
A ssets a n d lia b ilitie s p e r $100 o f t o ta l
A ssets— t o t a l ...................................................................
Cash and due from ban ks..........................................
United States Government obligations..................
Other securities.............................................................
Real estate m ortgage loans.......................................
Other loans and discounts.........................................
Other real estate...........................................................
All other assets..............................................................
100.00
3.97
43.68
9.96
40.52
.48
.02
1.37
100.00
4.07
37.73
11.53
44.75
.48
.01
1.43
100.00
3.79
33.74
13.20
47.33
.52
.01
1.41
100.00
4.00
30.88
13.79
49.39
.55
.01
1.38
100.00
3.56
26.36
13.23
54.82
.57
.01
1.45
100.00
3.09
23.36
12.37
59.08
.63
.01
1.46
L ia b ilitie s a n d s u rp lu s a c c o u n t s — t o t a l .............
T otal deposits................................................................
Savings and time deposits........................................
Demand deposits........................................................
Other liabilities.............................................................
Total surplus accounts................................................
100.00
89.85
89.74
.11
.48
9.67
100.00
89.93
89.80
.13
.52
9.55
100.00
90.28
90.13
.15
.61
9.11
100.00
90.24
90.04.20
.73
9.03
100.00
90.49
90.26
.23
.87
8.64
100.00
90.50
90.36
.14
1.02
8.48
Num ber of banks, December 3 1 ..................................
202
206
219
218
220
223
S p e cia l r a tio s 1
Interest on U . S. Government obligations per $100 of U . S. Government obligations........
Interest and dividends on other securities per $100 of other securities....................................
Interest and discount on real estate mortgage loans per $100 of real estate mortgage loans
Interest and discount on other loans and discounts per $100 of other loans and discounts.
Dividends and interest on deposits per $10 0 of savings and time deposits.............................
N et additions to total surplus accounts from operations per $100 of total surplus accounts
3.66
.64
3.02
.04
2.98
2.48
.50
1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.
2 Includes “ Valuation reserves” and “ Other asset valuation provisions (direct write-downs)” .
Back figures, 193U and 1941-1950: D ata for 1934 and 1941-1950, which however are not comparable with figures for 1951-1956, m ay be found in the following Annual Reports:
1950, p p . 274-275, and 1947, p p . 156-157.
b
p
BANKS
3.53
.65
2.88
.04
2.84
2.36
.48
INSURED
3.30
.64
2.66
.05
2.61
2.13
.48
OF
3.30
.65
2.65
.05
2.60
2 .11
.49
DIVIDEN DS
3.17
.65
2.52
.05
2.47
2.04
.43
E X P E N S E S , AND
3.08
.64
2.44
.04
2.40
1.69
.71
E A R N IN G S ,
A m o u n t s p e r $100 o f t o ta l a ssets 1
Current operating income— to ta l............................................................................................................................................
Current operating expense— to ta l...........................................................................................................................................
N et current operating in com e..................................................................................................................................................
State franchise and income taxes............................................................................................................................................
N et current operating income after taxes.............................................................................................................................
Dividends and interest on deposits.........................................................................................................................................
N et current operating income after taxes and dividends.................................................................................................
Non-recurring incom e, realized profits and recoveries credited to profit and loss, and transfers from valuation
adjustment provisions*— to ta l..............................................................................................................................................
Non-recurring expense, realized losses charged to profit and loss, and transfers to valuation adjustment pro
visions2— to ta l.......................................................................................................................................
N et additions to total surplus accounts from operations.............................................................
D
e p o s it
Insurance D
isb u r s e m e n t s
Table 117.
Depositors, deposits, and disbursements in insured banks requiring disbursements
by the Federal Deposit Insurance Corporation, 1934-1956
Banks grouped by class of bank, year of deposit pay-off or deposit assumption,
amount of deposits, and State
Table 118.
Assets and liabilities of insured banks requiring disbursements by the Federal
Deposit Insurance Corporation, 1934-1956
Table 119.
Insured banks requiring disbursements by the Federal Deposit Insurance Corpo
ration during 1956
Table 120.
Recoveries and losses by the Federal Deposit Insurance Corporation on principal
disbursements for protection of depositors, 1934-1956
D ISBU RSEM EN TS
Sources o f data
Insured banks: books of bank at date of closing; and books of FDIC,
December 31, 1956.
INSURANCE
Noninsured bank failures
One noninsured bank failed in 1956. This was Smolan State Bank,
Smolan, Kansas, February 17, 1956, deposits $359,664. For suspensions
of noninsured banks in previous years see the Annual Reports of the
Corporation as follows: 1943, p. 102; 1946, p. 167; 1947, p. 159; 1949,
p. 187; 1950, p. 277; 1951, p. 187; 1952, p. 139; 1953, p. 131; 1954,
p. 165; and 1955, p. 161.
DEPOSIT
Disbursem ents by the Federal Deposit Insurance Corporation
to protect depositors are made when the insured deposits of banks
in financial difficulties are paid off, or when the deposits of a failing
bank are assumed by another insured bank with the financial aid of the
Corporation. In deposit pay-off cases the disbursement is the amount
paid by the Corporation on insured deposits. In deposit assumption
cases the principal disbursement is the amount loaned to failing banks,
or the price paid for assets purchased from them; additional disburse
ments are made in those cases as advances for protection of assets in
process of liquidation and for liquidation expenses.
Table 117.
D e p o s i t o r s , D e p o s i t s , a n d D i s b u r s e m e n t s in I n s u r e d B a n k s R e q u i r i n g
D i s b u r s e m e n t s b y t h e F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n , 1934-1956
banks
grouped
by
class
of
bank,
year
o f d e p o s it
p a y - off
Number o f depositors1
N um ber of banks
or
d e p o s it a s s u m p t i o n , a m o u n t
Deposits1
(in thousands o f dollars)
of
d e p o s it s ,
and
Disbursements b y FDIC*
(in thousands o f dollars)
Principal disbursements
Classification
Deposit
pay-off
cases
Total
D eposit
assump
tion
cases
Total
T otal
Deposit
pay-off
cases
Deposit
assump
tion
cases
T otal
Advances and
expenses
Deposit
assump
tion
cases6
Deposit
pay-off
cases8
Deposit
assump
tion
cases7
292,238
94,469
197,769
1,018
46,779
305,657
368,424
751,654
61,088
82,818
252,402
244,619
285,606
499,252
123,734
187,656
271,802
24,082
26,537
70,176
99,652
161,119
201,626
56,293
101,205
134,740
17,755
20,934
55,780
38,538
80,271
78,960
209
89
720
6,180
19,268
21,331
1
27
25
24
15,767
44,655
89,018
130,387
203,961
15,767
32,331
43,225
74,148
44,288
12,324
45,793
56,239
159,673
1,968
13,320
27,508
33,349
59,684
1,968
9,091
11,241
14,960
10,296
4,229
16,267
18,389
49,388
941
8,890
14,781
19,160
30,479
941
6,025
8,056
12,044
9,092
2,865
6,725
7,116
21,387
46
114
67
103
92
272
934
882
4,902
28
24
7
14
1
1
392,718
256,361
73,005
60,688
27,371
5,487
90,169
20,667
38,594
5,717
16,917
899
302,549
235,694
34,411
54,971
10,454
4,588
157,772
142,430
29,717
19,185
12,525
1,915
32,738
5,657
14,730
1,816
6,637
456
125,034
136,773
14,987
17,369
5,888
1,459
67,770
74,134
23,880
10,825
7,172
1,503
26,197
4,895
12,278
1,612
5,500
404
41,573
69,239
11,602
9,213
1,672
1,099
162
89
50
38
54
9
17,603
17,234
1,476
1,076
72
37
76
22
333
23
6
221
53
16
112
Y ea r8
1934
1935.............................................
1936.............................................
1937.............................................
1938.............................................
9
25
69
75
74
9
24
42
50
50
1939.............................................
1940.............................................
1941.............................................
1942.............................................
1943.............................................
1944.............................................
60
43
15
20
5
2
32
19
8
6
4
1
1945
1946
1947
1948
1949
1950
1
1
5
3
4
4
1
1
5
3
4
4
12,483
1,383
10,637
18,540
5,671
6,365
12,483
1,383
10,637
18,540
5,671
6,365
5,695
347
7,040
10,674
5,475
5,502
5,695
347
7,040
10,674
5,475
5,502
1,768
265
1,724
2,990
2,552
3,986
1,768
265
1,724
2,990
2,552
3,986
97
11
296
199
166
475
1951
1952
1953
1954
1955.............................................
1956.............................................
2
3
2
2
5
2
4
1
2
3
2
2
1
1
5,276
6,752
24,469
1,807
17,804
15,130
8,082
5,454
5,276
6,752
24,469
1,807
9,722
9,676
3,408
3,171
18,262
997
11,968
11,280
6,503
4,702
3,408
3,171
18,262
997
5,465
6,578
1,885
1,369
5,017
913
6,789
3,445
4,443
2,982
1,885
1,369
5,017
913
2,346
463
119
75
126
178
363
98
207
75
B an k s w ith d e p o sits o f—
$100,000 or less........................
$100,000 to $250,000..............
$250,000 to $500,000..............
$500,000 to $1 ,000,000...........
107
109
59
63
83
86
36
27
24
23
23
^ m
38,350
83,370
89,949
162,579
29,695
65,512
56,777
67,219
8,655
17,858
33,172
95,360
6,426
17,759
20,976
52,623
4,947
13,920
12,462
20,379
1,479
3,839
8,514
32,244
4,998
12,906
14,588
33,423
4,308
11,554
10,223
16,222
690
1,352
4,365
17,201
89
213
146
231
153
150
592
2,061
42
31
11
5
4
9
7
193,531
234,992
180 517
170,119
272,328
54,324
61,560
139,207
173,432
180,517
108,948
272,328
60,554
96,749
71,975
96,712
159,418
11,748
24,695
48,806
72,054
71,975
64,068
159,418
31,140
51,917
23,866
45,747
73,653
8,961
17,525
22,179
34,392
23,866
20,071
73,653
61
194
3,227
5,525
5,011
5,341
24,719
$1 ,000,000 to $2 ,000,000____
$2,000,000 to $5,000,000____
nnn
non
i n non nftO ••
Digitized for«pDFRASER
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$10,000,000 to $25,000,000. .
http://fraser.stlouisfed.org/
$25,000,000 to $50,000,000. .
Federal Reserve Bank of St. Louis
2
8*
24^
41 -'
3
4
61,171
32,644
*2*5*,676*
84
CORPORATION
462,397
INSURANCE
120,795
181 1,425,735
DEPOSIT
583,192
250
FEDERAL
Deposit
pay-off
cases4
396,258 1,029,477
431
C lass o f b a n k
N ational ban ks.........................
State banks members F . R . S.
Banks not members F . R . S ..
A ll b a n k s ......................................
Deposit
pay-off
cases
Deposit
assump
tion
cases3
state
S ta te
A labam a .....................................
Arkansas.....................................
C alifornia...................................
C olorad o.....................................
C onnecticu t...............................
7,906
4,433
7,519
10
5,379
794
3,529
4,350
10
5,379
7,112
904
3,169
2,286
1,764
4,791
8
1,526
10 1
1,168
3,713
8
1,526
2,185
596
1,078
2
9
2
18
20
1
7
2
6
15
1
2
1,642
8,387
2,450
43,291
30,006
448
7,773
2,450
5,372
12,549
1,194
614
491
1,089
1,893
27,321
13,594
217
998
1,893
1,637
3,932
274
91
3
5
18
3
3
4
5
13,665
5,145
36,134
6,087
9,722
1,676
2,254
18,490
6,087
11,989
2,891
17,644
M a in e..........................................
6
9
23
3
1
5,516
1,233
8,886
1,652
5,465
498
539
3,954
1,652
M arylan d ...................................
Massachusetts...........................
M ichigan....................................
M innesota..................................
Mississippi.................................
5
2
8
5
3
2
3
2
5
22,567
9,046
31,663
2,650
1,651
6,643
15,924
9,046
30,735
4,566
3,019
13,531
818
334
828
M issouri.....................................
M on ta n a .....................................
N ebraska....................................
N ew Hampshire.......................
N ew Jersey................................
46
5
4
1
38
34
3
4
8,169
651
5,116
215
538
11
80,915
N ew Y o r k ..................................
N orth Carolina.........................
N orth D a k ota ...........................
O h io.............................................
Oklahom a...................................
26
7
29
3
8
Oregon.........................................
Pennsylvania.............................
South Carolina..........................
South D a k ota ............................
Tennessee...................................
1
29
2
23
12
T exas...........................................
V erm ont.....................................
V irginia.......................................
W ashington...............................
W est Virginia............................
20
3
8
1
3
18
2
3
W iscon sin...................................
W yom ing....................................
31
1
20
F lorida........................................
Id a h o ...........................................
Illinois.........................................
Indiana.......................................
Io w a .............................................
Kansas........................................
K e n tu ck y ...................................
12
5
1
3
5
3
12
2
37,919
17,457
9,722
928
2,650
1,651
1,089
985
2,984
8
1,242
94
841
2,123
8
1,242
995
144
861
300
915
1,495
9,225
6,197
203
846
1,495
1,242
3,096
97
69
1,456
974
5,455
668
2,346
385
482
3,329
668
1,071
492
2,126
3,738
3,019
13,371
3,109
1,564
6,289
640
257
735
2,374
1,564
6,150
2,033
880
.........296
161,502
4,981
639
469
118
80,760
25,103
.........118
55,657
147
.............7
20,153
32
23
23
9
44
10,870
181
203
14
104
25,684
9,662
5,018
694
4,932
5,465
160
818
334
7,983
3,101
1
27
1,780
418,766
7,149
1,095
538
296
192,417
3
2
18
2
5
23
5
11
1
3
269,565
10,408
14,103
8,544
10,795
28,440
3,677
6,760
7,585
5,874
241,125
6,731
7,343
959
4,921
145,389
3,266
3,830
3,139
4,371
13,286
1,421
1,552
2,345
1,659
132,103
1,845
2,278
794
2,712
67,797
2,387
2,656
1,868
2,444
10,835
1,156
1,397
1,610
1,133
56,962
1,231
1,259
258
1,311
8
1
22
8
1
21
1
1
4
2,209
166,893
1,848
12,515
12,358
43,828
403
11,412
9,993
2,209
123,065
1,445
1,103
2,365
1,302
75,746
850
2,988
1,942
14,340
136
2,862
1,620
1,302
61,406
714
126
322
962
51,292
274
2,412
1,278
10,133
136
2,388
1,164
962
41,159
138
24
114
2
1
5
1
26,598
11,057
26,041
4,179
8,346
25,070
8,687
2,964
1,528
2,370
23,077
4,179
9,524
3,725
10,756
1,536
2,006
8,838
3,375
629
686
350
10,127
1,536
6,568
3,445
4,907
935
1,458
6,275
3,259
511
26,898
3,212
18,739
9,511
2,033
5,966
7,188
202
5,096
11
1
8,346
8,159
3,212
2,006
3,545
2,033
3
16
26
30
39
2,346
139
640
257
4,335
186
469
81
48
138
8
34,929
26,760
1,500
849
2,224
2,224
1,780
520,380 ‘ 101,614
3
(#)
1
8
50
13
32
720
384
6
6
44
10
113
72
153
9
371
1,030
752
207
1
17
5
646
453
79
5
6
75
( 9)
27
28
77
21
81
9,479
10
9
25
293
186
4,396
935
145
21
8
11
44
22
505
512
325
2,092
202
56
23
1,458
1 Adjusted to December 31, 1956.
* Excludes $17 thousand of non-recoverable insurance expenses in cases which were resolved without payment of claims or a disbursement to facilitate assumption of deposits by
another insured bank.
* N um ber of deposit accounts.
4 Includes estimated additional disbursements in active cases.
5 Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.
8 N one of these disbursements, which include estimated additional disbursements in active cases, are recoverable by the Corporation; they consist almost wholly of field pay-off
expenses.
7 Includes advances to protect assets and liquidation expenses of $46,606 thousand, all of which have been fully recovered b y the Corporation, and $173 thousand of non-recoverable
expenses.
8 Disbursement totals for each year relate to cases occurring during that year and may thus contain some amounts disbursed in subsequent years for such cases.
» Less than $500.
DISB U R SEM E N TS
2
1
1
INSURANCE
1
5
1
1
2
DEPOSIT
3
6
2
1
2
o>
Table 118.
A s s e t s a n d L ia b ilit ie s o f In su re d B a n k s R e q u ir in g D is b u r s e m e n ts b y t h e
F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n , 1934-19561
Year
Cash and
due from
banks
$93,982,038
D E P O S IT P A Y -O F F C ASES
T o t a l . . . . $24,789,737 $12,615,103
22,620,382
1,584,793
584,562
10,154,078
1,861,820
599,205
D E P O S IT A S S U M P T IO N CASES
T o t a l . . . . $108,163,692 $81,366,935
71,078,303
781,093
8,326,289
141,600
600,000
439,650
$75,517,919 $259,238,402
$23,108,322
$59,587,391
$70,603,989
$5,557,145
$16,161,189
Other
liabilities
Capital
stock
Other
capital
accounts2
$16,543,096 $660,930,597 $579,802,988
$12,134,399
$64,748,7253
$4,244,485
$12,293,686
$9,420,763 $151,441,612 $118,575,110
$10,267,478
$18,540,545^
$4,058,479
107,374,564
6,497,918
4,702,628
10,122,023
7,713
137,742
18,150,545
140.000
250.000
4,642,916
-696,032
111,595
$7,122,333 $509,488,985 $461,227,878
$1,866,921
$46,208,1806
$186,006
426,926,717
3,006,036
18,262,055
990,283
5,464,660
6,578,127
1,562,284
8,908
22,339
13
240
273,137
45,406,180
62,000
250.000
50,000
160.000
280,000
-490,876
-688,553
276,823
97,380
410,841
580,391
65,569,217
2,191,398
2,843,374
5,375,616
104,298
77,231
12,293,686
$59,356,730 $188,634,413
$17,551,177
$47,293,705
173,946,208
924,419
4,878,142
884,925
2,695,617
5,305,102
17,157,906
35,121
141,556
1,306
96,671
118,617
47,270,110
15,946,562
154,627
60,000
58,427,796
40,728
660,548
2,000
80,000
145,658
T otal
18,067
5,528
Other
assets
8,330,507
52,663
1,037,593
5,314,676
54,320
319,032
19,431
22,185
1,392,689
140,290,048
5,949,599
5,201,965
473,404,305
2,388,391
18,811,217
1,137,676
6,035,741
7,711,655
Total
deposits
1 As shown by books of banks after adjustments, if any, for liabilities or overdrafts discovered subsequent to closing.
2 Includes surplus, undivided profits, and reserve funds, minus deficit, if any, as determined after adjustment of books of banks.
8 Includes R . F . C. capital of $25,180,114.
* Includes R . F . C . capital of $5,896,246.
^
.
6 There were no deposit pay-off cases from 1945 through 1954. For data b y years see Annual Report of the Corporation for 1950, p. 280.
« Includes R . F . C. capital of $19,283,868.
7 For data b y years see Annual R eport of the Corporation for 1954, p. 168.
CORPORATION
1935-19517 100,209,306
552,710
195 2
4,485,650
195 3
88,414
195 4
2,523,201
195 5
304,411
195 6
Other
real
estate
Loans,
discounts,
and
overdrafts
INSURANCE
1934-19515
195 5
195 6
Banking
house,
furniture &
fixtures
Other
securities
DEPOSIT
T o t a l . .. . $132,953,429
U . S. G ov
ernment
obligations
FEDERAL
Liabilities and capital accounts
Table 119.
Case
number
I n s u r e d B a n k s R e q u i r i n g D is b u r s e m e n t s b y t h e F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n D u r i n g
N am e and location
Num ber of
depositors
or
accounts1
Class of bank
Date of closing
1956
First paym ent to
depositors, or
disbursement b y
F D IC
Disburse
ment2
$2,981,466
Federal Deposit Insurance
Corporation
$463,022
Ellenville National Bank3
Ellenville, New York
Receiver or
assuming bank
1
Deposit
assumption
181
State bank not
member F . R . System
5,465
October 15, 1956
October 23, 1956
The Hom e N ational Bank of
Ellenville,
Ellenville, N ew Y ork
National
9,676
December 4, 1956
December 21,1956
Assets4
Cash and
due from
banks
U . S. G ov
ernment
obligations
Other
securities
Loans,
discounts,
and
overdrafts
Banking
house,
furniture &
fixtures
$888,973
$1,038,855
$205,658
$8,148,476
$195,848
Deposit
pay-off
250
584,562
599,205
60,000
2,843,374
77,231
Deposit
assumptk )n
181
304,411
439,650
145,658
5,305,102
118,617
T otal
Other
real
estate
$5,528
5,528
Total
Other
assets6
Deposits
Other
liabilities
Capital
stock
Other
capital
accounts
$2,430,282
$12,913,620
$11,280,755
$410,879
$530,000
$691,986
1,037,593
5,201,965
4,702,628
137,742
250,000
111,595
1,392,689
7,711,655
6,578,127
273,137
280,000
580,391
1 A t date of closing. N um ber of depositors in deposit pay-off case; number o f deposit accounts in deposit assumption case.
8 In deposit pay-off case includes disbursements made to December 31, 1956, plus estimated additional disbursements.
* The Hom e National Bank of Ellenville was placed in receivership, and the Corporation named receiver, on December 4, 1956; the assumption of deposits by the Ellenville N a
tional Bank was facilitated b y a loan to the receiver by the Corporation on December 21, 1956.
4 As determined b y F D IC agents after adjustment of books of bank for liabilities or overdrafts discovered subsequent to closing.
* In deposit p ay-off case includes $962,862 of items involved in kite which caused bank’s suspension; in deposit assumption case includes $1,079,510 o f “ unreconciled differences,”
m ost or all of which is attributable to overdrafts.
D IS B U R S E M E N T S
Case
number
Liabilities and capital accounts4
INSURANCE
R iver Oaks State Bank,
Fort W orth, Texas
DEPOSIT
Deposit
pay-off
250
Table 120.
R e c o v e r ie s an d L o sse s by t h e F e d e r a l D e p o s it In s u r a n c e C o r p o r a tio n
P r i n c i p a l D is b u r s e m e n t s f o r P r o t e c t i o n o f D e p o s i t o r s , 1934-1956
on
(Amounts in thousands of dollars)
Total...........
Number
of
banks
Principal
disburse
ments*
R e
coveries
to D ec.
31, 1956
Estimated
additional
recoveries
431
292,238
259,077
4,417
28,744
250
94,469
76,530
2,565
35
396
109,626
182,612
96,554
162,523
4,417
8,655
20,089
5
245
7,425
87,044
3,662
72,868
2,565
9
25
69
75
74
941
8,890
14,781
19,160
30,479
734
6,154
12,315
15,610
28,054
207
2,716
2,459
3,550
2,425
9
24
42
50
50
941
6,025
8,056
12,044
9,092
60
43
15
67,770
74,134
23,880
10,825
7,172
1,503
60,597
70,100
23,233
10,136
7,048
1,463
7,157
3,872
595
689
124
40
32
19
26,197
4,895
12,278
1,612
5,500
404
1,768
265
1,724
2,990
2,552
1,768
265
1,480
2,350
2,179
2,573
1,885
1,369
5,017
913
6,789
3,445
1,792
563
5,017
531
5,114
R e
coveries Estimated
to D ec. additional
31, 19561 recoveries
Number
of
banks
Principal
disburse
ments4
15,374
181
197,769
182,547
1,852
13,370
1,198
14,176
30
151
102,201
92,892
89,655
1,852
95,568
7,457
5,913
734
4,274
6,596
9,519
7,908
207
1,751
1,460
2,525
1,184
1
27
25
24
2,865
6,725
7,116
21,387
1,880
5,719
6,091
20,146
20,399
4,313
12,065
1,320
5,376
364
5,798
582
213
292
124
40
28
24
7
14
1
1
41,573
69,239
11,602
9,213
1,672
1,099
40,198
65,787
11,168
8,816
1,672
1,099
1
1
5
3
4
4
1,768
265
1,724
2,990
2,552
3,986
1,768
265
1,480
2,350
2,179
2,573
2
1,885
1,369
5,017
913
2,346
463
1,792
563
5,017
531
1,452
Losses2
Year
193
193
193
193
193
4
5
193
194
194
194
194
194
9
0
1
2
3
4
194
194
194
194
194
195
5
195
195
195
195
195
195
6
7
8
6
20
5
2
1
7
8
9
0
1
5
3
4
4
1
2
3
4
5
2
3
2
2
5
2
6
20
7
16
162
52
170
3
25
74
640
370
1,388
22
784
8
6
4
1
3
2
80
1,394
2,373
302
281
1,072
4,443
2,982
3,662
500
2,065
281
917
2
1
1
20
7
965
999
1,025
1,241
16
162
52
1,359
3,290
382
397
170
74
640
370
1,388
3
25
93
22
80
894
308
N ote: D ue to rounding differences, com ponents m ay not add precisely to the indicated totals.
1 Excludes in deposit assumption cases recovery o f all advances for asset protection, totaling $32,490 thousand, and of all liquidation expenses, totaling $14,116 thousand.
2 Includes estimated losses in active cases. N ot adjusted for interest or allowable return, which was collected in some cases in which the disbursement was fully recovered.
* Includes estimated additional disbursements in active cases.
^Excludes excess collections turned over to banks as additional purchase price at termination of liquidations.
784
’ 302
* 155
C O R P O R A T IO N
Principal
disburse
ments
INSURANCE
Losses2
R e
coveries Estimated
additional
to D ec.
31, 19561 recoveries
Num ber
of
banks
Deposit assumption cases
DEPOSIT
Status
A ctive.........
Terminated.
Deposit pay-off cases
All cases
FEDERAL
Liquidation
status and
year of de
posit pay-off
or deposit
assumption
INDEX
I
n d e x
Page
Absorptions:
Applications to permit.......................................................................................
8
Of insured banks requiring disbursements by the Corporation. See Banks
in financial difficulties.
Of operating banks, 1956................................................................ 6, 7, 25-26, 90-91
Admission of banks to insurance:
Applications for..................................................................................................
6-8
Number of banks admitted, by class of bank, 1956....................................... 90-91
American Institute of Banking...............................................................................
19
Applications from banks..........................................................................................
6-8
Areas outside continental United States, banks and branches located in:
Assets and liabilities, December 31, 1956...................................................... 108-109
Deposits, December 31, 1956.......................................................... 100-101, 108-109
Earnings, expenses, profits, and dividends, 1956...........................................128-129
Number, December 31, 1956...............................................................92, 99, 100-101
Assessments for deposit insurance. See Federal Deposit Insurance Corporation.
Assets and liabilities of closed banks. See Banks in financial difficulties.
Assets, liabilities, and capital of operating banks {see also Deposits):
All banks:
Amount and changes in, by type and insurance status, 1956. .28-29, 33-34, 36
Amount and changes in, 1947-1956.......................................... xv, 27-30, 33-36
By FDIC district and State, December 31, 1956.................................... 108-109
In banks grouped according to insurance status and type of bank,
June 30 and December 31, 1956.......................................................... 104-107
Percentage changes, half-years and years, 1947-1956............................... 34-36
Percentage distribution and amount, 1947-1956............................. 27-30, 34-35
Commercial banks, June 30 and December 31, 1956..................... 29, 33, 104-107
Insured banks, December 31, 1955, June 30 and December 31, 1956.29, 33, 110-113
Insured commercial banks:
Amount and changes in, 1947-1956...................................... 29-32, 33-34, 37-38
Amount, December 31, 1955, June 30 and December 31, 1956..............
........................................................................ 27-29, 32-34, 104-107, 110-113
Average for each year, 1948-1956................................................................
117
Average for 1956, by class, size of bank, or State.....................................
.......................................................................121, 125, 129, 131, 133, 135, 137
Percentage comparison with mutual savings banks, December 31,
1956......................................................................................................27, 32, 33
119
Percentage distributions, average for each year, 1948-1956.....................
Percentage distributions, average for 1956, by class or size of bank. .. 123, 127
Percentage distributions, December 31, 1955, June 30 and December
31, 1956..............................................................................................31-32, 111
Ratio of capital to total assets, by State, 1936, 1946, 1956..................... 37-38
Insured mutual savings banks:
Amount, December 31, 1955, June 30 and December 31, 1956..............
....................................................................................... 27-29, 32, 33, 110-113
Major categories, average, 1951-1956.........................................................
139
Percentage comparison with commercial banks, 1956.......................... 27, 32-34
Percentage distributions, 1951-1956............................................................
141
Mutual savings banks, June 30 and December 31, 1956................. 29, 33, 104-107
Noninsured banks, June 30 and December 31, 1956........................29, 33, 104-107
Sources of data................................................................................................. 7-9, 103
State legislation.................................................................................................. 85-86
151
152
FE D E RA L D EPOSIT IN SU R AN C E CORPORATION
Page
Assets and liabilities of the Federal Deposit Insurance Corporation... .15-16, 19-20
Assets pledged to secure bank obligations.............................................................
113
Assets purchased by the Federal Deposit Insurance Corporation from banks
in financial difficulties. See Banks in financial difficulties.
Assumption of deposits of insured banks with financial aid of the Corporation.
See Banks in financial difficulties.
Audit of the Federal Deposit Insurance Corporation........................................... 19-21
Bad-debt reserves. See Valuation reserves.
Bank Holding Company Act of 1956.................................................................17, 77-83
Bank supervision. See Supervision of banks; Examination of insured banks.
Banking Act of 1933................................................................................................
3
Banking offices, number of. See Number of operating banks and branches.
Banking practices. See Unsafe and unsound banking practices.
Banks, applications from, acted on by the Federal Deposit Insurance
Corporation..............................................................................................
6-8
Banks in financial difficulties:
Insured banks requiring disbursements by the Corporation:
Assets and liabilities of, 1934-1956..............................................................
146
Assets and liabilities of, 1956.......................................................................
147
Deposits protected, 1934-1956.........................................................9-12, 144-147
Disbursements by the Corporation, 1934-1956........xv, 9-12, 144-145, 147-148
Loans made and assets purchased by the Corporation..........9-12, 15-16, 20, 21
Location, by State, 1934-1956.....................................................................10, 145
Losses incurred by the Corporation...................................10-11, 13, 14, 15, 148
Losses incurred by depositors...................................................................... 11-12
Name and location of, 1956......................................................................... 9, 147
Number of, 1934-1956...................................................... 9-10, 144-145, 147-148
Number of deposit accounts....................................................9-10, 144-145, 147
Recoveries by the Corporation on assets acquired............................... 9-12, 148
Sources of data....................................................................................................
143
Suspensions of noninsured banks, 1956............................................................90, 143
Banks, number of. See Number of operating banks and branches.
Banks operating branches. See Number of operating banks and branches.
Board of Directors of the Federal Deposit Insurance Corporation. See Federal
Deposit Insurance Corporation.
Board of Governors of the Federal Reserve System....................... 3-4, 6, 19, 103, 115
Branches (see also Number of operating banks and branches):
Establishment approved by Federal Deposit Insurance Corporation, 1956..
8
Examination o f...................................................................................................
4
Increase, all banks, 1946-1956........................................................................... 25-26
Legislation, State................................................................................................
84
Business and personal deposits. See Deposits (items referring to type of
account).
Call reports. See Assets, liabilities, and capital of operating banks; Reports
from banks.
Capital of banks. See Assets, liabilities, and capital of operating banks; Banks
in financial difficulties; Earnings and expenses of insured commercial
IN D E X
153
Page
banks; Earnings and expenses of insured mutual savings banks;
Examination of insured banks.
Charge-offs by banks. See Earnings and expenses of insured mutual savings
banks; Earnings and expenses of insured commercial banks; Valua
tion reserves.
Class of bank, banking data presented by:
Admissions to and terminations of insurance.................................................. 90-91
Assets and liabilities of operating banks, June 30 and December 31, 1956. . 104-107
Deposits.........................................................................................100-101, 105, 107
Earnings of insured commercial banks, 1956................................................ 120-123
Insured banks requiring disbursements by the Corporation, 1934-1956....
144
Insured banks requiring disbursements by the Corporation, 1956..............
147
Number of banks and banking offices, 1956.................................................... 90-99
Ratios of earnings of insured commercial banks, 1956................................. 122-123
Classification of banks............................................................................................. 88-89
Closed banks. See Banks in financial difficulties.
Commercial banks. See Assets, liabilities, and capital of operating banks;
Deposits; Earnings and expenses of insured commercial banks;
Number of operating banks and branches; Trust departments of
insured commercial banks.
Comptroller General of the United States........................................................ 17, 19-21
Comptroller of the Currency.................................................... iv-v, 6-7, 8. 9, 103, 115
Consolidations. See Absorptions.
Coverage of deposit insurance, banks participating..........xv, 3, 17, 26-27, 77, 90-101
Credit, bank. See Assets, liabilities, and capital of operating banks.
Demand deposits. See Assets, liabilities, and capital of operating banks; De
posits (items referring to type of account).
Deposit insurance fund....................................................................... xv, 13-16, 20-21
Deposits:
All banks:
By insurance status of bank and type of account, December 31, 1956. .
........................................................................................................... 33-34, 107
By insurance status of bank and type of account, June 30, 1956..........
105
By type of account in each State and FDIC district, December 31,
1956........................................................................................................ 108-109
By type of bank and insurance status, December 31, 1956................. 26-27
By type of bank in each State and FDIC district, December 31, 1956. . 100-101
Growth rates, 1947-1956....................................................................... xv, 33-36
Percentage change, half-years and years, 1947-1956.................................
36
35
Percentage distribution, by amount and type of account, 1947-1956___
All insured banks:
By type of account, December 31, 1956.............................................. 33-34, 107
By type of account, December 31, 1955, June 30 and December 31, 1956
112
By type of account, June 30, 1956..............................................................
105
Ratios of deposit insurance fund t o ............................................................ xv, 16
Commercial banks:
By FDIC district and State, December 31, 1956.................................... 100-101
By type of account, December 31, 1956.............................................. 33-34, 107
By type of account, June 30, 1956..............................................................
105
Insured banks requiring disbursements by the Corporation. See Banks in
financial difficulties.
Insured commercial banks:
Amount, by type of account, December 31, 1955, June 30 and December
31, 1956..............................................................................................33-34, 112
Percentage decline, June 30, 1954-1956......................................................
34
154
FE D E R A L D E PO SIT IN SU R AN C E CORPORATION
Page
Insured mutual savings banks:
By FDIC district and State, December 31, 1956....................................100-101
By type of account, December 31, 1955, June 30 and December 31,
1956..........................................................................................................33,112
Interest and dividends on, 1951-1956...........................................39-41, 138-141
Mutual savings banks:
By FDIC district and State, December 31, 1956....................................100-101
By type of account, December 31, 1956.................................................... 33, 107
By type of account, June 30, 1956.............................................................
105
Noninsured banks:
By FDIC district and State, December 31, 1956....................................100-101
By type of account and type of bank, December 31, 1956..................... 33, 107
By type of account and type of bank, June 30, 1956...............................
105
Sources of data...................................................................................................
103
State legislation..................................................................................................
85
Directors of the Federal Deposit Insurance Corporation. See Federal Deposit
Insurance Corporation.
Disbursements. See Banks in financial difficulties.
Dividends:
To depositors in insured mutual savings banks...............................39-41, 138, 140
To stockholders of operating insured commercial banks. See Earnings and
expenses of insured commercial banks.
Earnings and expenses of insured commercial banks:
Amounts of principal components:
Annually, 1948-1956................................................................................... 116-117
By class of bank, 1956............................................................................... 120-121
By size of bank, 1956................................................................................. 124-125
By State, 1956............................................................................................ 128-137
Charge-offs, recoveries, and changes in valuation reserves............................. 41-42
Income, sources and disposition of total, 1947, 1952-1956..................... xv, 38-42
Profits, 1947-1956............................................................................................... 42-44
Rate of income on assets, 1948-1956................. 38-40, 118-119, 122-123, 126-127
Rate of net profit on total capital accounts, 1956...................................... xv, 43-44
Ratios of earnings items:
Annually, 1948-1956.......................................................................40, 43, 118-119
By class of bank, 1956............................................................................... 122-123
By size of bank, 1956..................................................................... 43-44, 126-127
Ratios of expense items.....................................................................................
41
Sources of data...................................................................................................
115
Earnings and expenses of insured mutual savings banks:
Amounts of principal components, 1951-1956............................................... 138-139
Income, sources and disposition of total, 1947, 1952-1956................... . . .38-42, 44
Rates of income on assets, 1951-1956........................................................ 38-40, 141
Ratios of earnings items, 1951-1956......................................................... 40, 140-141
Ratios of expense items.....................................................................................
41
Sources of data...................................................................................................
115
Educational program for bank examiners. See Federal Deposit Insurance
Corporation.
Employees:
Federal Deposit Insurance Corporation........................................................... 18-19
Insured commercial banks:
Number and compensation, 1947-1956...................................38, 40-41, 116-117
Number and compensation, by class of bank, by size of bank, and by
State, 1956............................................................. 120-121, 124-125, 128-137
Insured mutual savings banks, number and compensation, 1951-1956....
.................................................................................................... 39-41, 138-139
State legislation..................................................................................................
86
Examination of insured banks:
Banks examined by the Federal Deposit Insurance Corporation, 1955-1956.
3-5
Examination staff............................................................................................vi, 18-19
IN D E X
155
Page
Expenses of banks. See Earnings and expenses of insured commercial banks;
Earnings and expenses of insured mutual savings banks.
Expenses of the Corporation. See Federal Deposit Insurance Corporation,
income and expenses.
Failures. See Banks in financial difficulties.
Federal bank supervisory authorities...................................................................3-4, 6-8
Federal Deposit Insurance Act (see also Legislation relating to deposit in
surance and banking):........................................................ 3, 5, 13, 17, 19, 21
Amendment, 1956...............................................................................................
17
Federal Deposit Insurance Corporation:
Assessments on insured banks.................................................................13-16, 20-21
Assets and liabilities.......................................................................................15-16, 20
Audit........................................ ...................................................................... 17, 19-21
Banks examined by, and submitting reports to ............................................ 3-5, 7-8
Board of Directors, actions on applications and banking practices..............
5-7
Borrowing power..............................................................................................15n, 21n
Capital stock.......................................................................................................
15n
Coverage of deposit insurance.................................................................. 3, 11-12, 17
Deposit insurance fund (surplus)............................................................13-16, 20-21
Directors (members of the Board)................................................................iv-v, 18
Disbursements for protection of depositors. See Banks in financial difficulties.
Districts.............................................................................................................. vi, vii
Divisions............................................................................................................ iv-v, 18
Educational program for bank examiners........................................................
19
Employees........................................................................................................... 18-19
Examination of banks. See Examination of insured banks.
Expenses. See Income and expenses.
Financial statements................................................................................ 13-16, 20-21
Income and expenses..................................................................................... 13-15, 21
Insured banks requiring disbursements by. See Banks in financial difficulties.
Interest rate, change in maximum......................................................... xv, 17, 83-84
Liabilities........................................................................................................ 15-16, 20
Loans to and purchase of assets from insured banks. See Banks in financial
difficulties.
Losses incurred, 1934-1956. See Banks in financial difficulties.
Methods of protecting depositors. See Banks in financial difficulties.
Organization and staff............................................................................... iv-vi, 18-19
Payments to insured depositors. See Banks in financial difficulties.
Protection of depositors. See Banks in financial difficulties.
Recoveries. See Banks in financial difficulties.
Reports from banks............................................................................................
7-8
Reserve for losses on assets acquired........................................................... 15, 20-21
15n
Retirement of capital stock of the Corporation..............................................
Rules and regulations.............................................................................. xv, 17, 83-84
Supervisory activities.........................................................................................
3-9
Federal Deposit Insurance Corporation districts, banking, data classified by:
Assets and liabilities of all banks, December 31, 1956...................................
Number and deposits of banks, by tj^pe of bank, December 31, 1 9 5 6 ....
108
100
Federal Reserve System. See Board of Governors of the Federal Reserve System.
General Accounting Office...................................................................................17, 19-21
Government deposits. See Deposits (items referring to type of account).
Guam, extension of deposit insurance t o ........................................................xv, 17, 77
156
FEDERAL DEPOSIT INSURANCE CORPORATION
Page
History of bank obligation insurance, State deposit insurance systems,
1908-1930:
Appraisal...................................................................................... xv, 47-48, 59, 64-65
Assessments (see also Insolvency of funds)............................. 49, 53-55, 62-65, 73
Rate.....................................................................................................55, 62-63, 73
Relative to losses.......................................................................................... 63-64
Security for............................................................................................... 54, 56, 58
Bank failures (see also Insolvency of funds).......................................... 51-52, 69-72
Banks participating..................................................................................49-50, 66-68
Bond security system.........................................................................................
57
Character.............................................................................................................
49
Comparison with earlier systems, 1829-1866................................................... 47, 49
Court decisions............................................................................................... 50, 56-58
Coverage.............................................................................................................. 49-51
Depression of 1921, effects on........................................................................... 54, 65
Federal deposit insurance, proposals for..........................................................
47
Income and expenditures of funds.................................................................... 62-63
Insolvency of funds.................................................................................. 54-60, 64-65
Losses to depositors....................................................................................... 61-64, 72
Losses to funds............................................................................................... 61-64, 71
Methods of paying depositors........................................................................... 52-53
National banks....................................................................................................47, 65
Payment of insured deposits......................................................................... 61-64, 71
Periods of operation...........................................................................................
49
Purpose................................................................................................................
47
Sources of data....................................................................................................
65
States participating............................................................................................
49
Income of insured banks. See Earnings and expenses of insured commercial
banks; Earnings and expenses of insured mutual savings banks
Income of the Federal Deposit Insurance Corporation. See Federal Deposit
Insurance Corporation.
Insolvent banks. See Banks in financial difficulties.
Insurance status, banks classified by:
Assets and liabilities, December 31, 1955, June 30 and December 31, 1956..
................................................................................................ 104-107, 110-113
Changes in number, 1956................................................................................... 90-91
Deposits, June 30 and December 31, 1956.................................... 100-101, 105, 107
Number, December 31, 1956............................................................................. 92-101
Percentage of banks insured, by State, December 31, 1956........................... 92-99
Insured banks. See Assets, liabilities, and capital of operating banks; Banks in
financial difficulties; Deposits; Earnings and expenses of insured
commercial banks; Earnings and expenses of insured mutual savings
banks;;'Number of operating banks and branches.
Insured commercial banks not members of the Federal Reserve System. See
Class of bank, banking data presented by.
Insured deposits. See Banks in financial difficulties.
Insured State banks members of the Federal Reserve System. See Class of bank,
banking data presented by.
Interbank deposits. See Deposits (items referring to type of account).
Interest. See Earnings and expenses of insured commercial banks; Earnings
and expenses of insured mutual savings banks; Federal Deposit
Insurance Corporation, rules and regulations.
Investments. See Assets, liabilities, and capital of operating banks; Assets
and liabilities of the Federal Deposit Insurance Corporation; Banks
in financial difficulties; Examination of insured banks.
INDEX
157
Page
Law, violations of by insured banks. See Unsafe and unsound banking
practices.
Legislation relating to deposit insurance and banking:
Federal, enacted in 1956................................................................................17, 77-84
State, enacted in 1956................................................................................... 17, 84-86
Loans. See Assets, liabilities, and capital of operating banks; Banks in financial
difficulties; Examination of insured banks.
Losses:
Of banks, charged off. See Earnings and expenses of insured commercial
banks; Earnings and expenses of insured mutual savings banks.
Of the Federal Deposit Insurance Corporation. See Federal Deposit In
surance Corporation; Banks in financial difficulties.
Provision for, in banks, 1948-1956............................................42, 116-117, 138-139
Mergers. See Absorptions.
Methods of tabulating banking data:
Assets and liabilities of operating banks..........................................................
Deposit insurance disbursements......................................................................
Earnings, expenses and dividends of insured banks........................................
Number, offices, and deposits of operating banks...........................................
103
143
115
88-89
Mutual savings banks. See Assets, liabilities, and capital of operating banks;
Deposits; Earnings and expenses of insured mutual savings banks;
Number of operating banks and branches.
National banks. See Class of bank, banking data presented by.
Net assessment income credits. See Federal Deposit Insurance Corporation,
assessments on insured banks.
Net earnings of insured commercial banks. See Earnings and expenses of insured
commercial banks.
Net profits of insured commercial banks. See Earnings and expenses of insured
commercial banks.
New banks. See Number of operating banks and branches.
Noninsured banks. See Absorptions; Admission of banks to insurance; Assets,
liabilities, and capital of operating banks; Class of bank, banking data
presented by; Deposits; Number of operating banks and branches;
Reports from banks.
Number of operating banks and branches:
Banking offices (banks and branches):
By insurance status, type of bank, and State, December 31, 1 9 5 6 .... 92-99
Changes, 1946 to 1956.................................................................................. 25-26
Relative to population, 1946 and 1956.......................................................
26
Banks:
By insurance status and type of bank, December 31, 1956___ 26-27, 90, 107
By insurance status and type of bank, June 30, 1956.............................
105
By insurance status, type of bank, and State, December 31, 1956......... 92-99
By insurance status, type of bank, FDIC district and State, December
31, 1956.................................................................................................. 100-101
Changes during 1956, by insurance status and type of bank...................
90
Banks operating branches, by insurance status and State, December 31,
1956.......................................................................................................... 92-99
Branches:
By insurance status, type of bank, and State, December 31, 1 9 5 6 .... 92-99
Changes during 1956, by insurance status and type of bank.................
90
Insured banks, December 31, 1955, June 30 and December 31, 1956..........
113
Insured commercial banks:
December 31, 1948-1956..............................................................................
117
158
F E D E R A L DEPO SIT IN SU R AN C E C ORPORATION
Page
December 31, 1956, by class, and operating throughout the year..........
121
December 31, 1956, by size of bank............................................................
125
Mutual savings banks, December 31, 1956...................................................... 26-27
Trust companies, December 31, 1956............................................................... 26-27
Unit banks, by insurance status and State, December 31, 1956................. 92-99
Obligations of banks. See Assets, liabilities, and capital of operating banks;
Deposits.
Officers of insured banks. See Employees.
Officers of the Federal Deposit Insurance Corporation...................................... v-vi, 18
Operating banks. See Number of operating banks and branches.
Payments to depositors in closed insured banks. See Banks in financial
difficulties.
Personnel. See Employees.
Possessions, banks and branches located in. See Areas outside continental
United States, banks and branches located in.
Profits. See Earnings and expenses of insured commercial banks.
Protection of depositors. See Banks in financial difficulties.
Public funds. See Deposits (items referring to type of account).
Receivership, insured banks placed in. See Banks in financial difficulties.
Recoveries:
By banks on assets charged off. See Earnings and expenses of insured
commercial banks; Earnings and expenses of insured mutual savings
banks.
By the Corporation on disbursements. See Banks in financial difficulties.
Reports from banks..................................................................................................
7-8
Reserves:
Of Federal Deposit Insurance Corporation, for losses on assets acquired..
........................................................................................................14-15, 20-21
Of insured banks for losses on assets. See Valuation reserves.
With Federal Reserve banks. See Assets, liabilities, and capital of operating
banks.
Salaries and wages:
Federal Deposit Insurance Corporation...........................................................14, 21
Insured banks. See Earnings and expenses of insured commercial banks;
Earnings and expenses of insured mutual savings banks.
Savings and time deposits. See Deposits (items referring to type of account).
Securities. See Assets, liabilities, and capital of operating banks; Assets and
liabilities of the Federal Deposit Insurance Corporation; Banks in
financial difficulties; Examination of insured banks.
Size of banks, data for banks classified by amount of deposits:
Assets and liabilities, insured commercial banks operating throughout
1956.......................................................................................................125, 127
Banks requiring disbursements by the Corporation, 1934-1956.................
144
Disbursements for protection of depositors, 1934-1956.................................
144
Earnings data of insured commercial banks, 1956........................................ 124-125
IN D E X
159
Page
Earnings ratios of insured commercial banks, 1956................................ 44, 126-127
Number of employees of insured commercial banks operating throughout
1956..........................................................................................................
125
Number of insured commercial banks operating throughout 1956............. 125, 127
State bank supervisory authorities:
Data obtained from............................................................................................8, 103
State legislation regarding.................................................................................
84
State, banking data classified by:
Assets and liabilities of operating banks, December 31, 1956................. 108-109
Capital accounts, ratio to assets.......................................................................
37
Deposits of operating banks, December 31, 1956..........................................100-101
Disbursements, deposits, and depositors in insured banks requiring dis
bursements by the Corporation, 1934-1956......................................... 10, 145
Earnings and expenses of insured commercial banks, 1956..........................128-137
Number of operating banks and branches, December 31, 1956, by class of
bank and type of office........................................................................... 92-99
Number of operating banks, December 31, 1956, by class...........................100-101
Proportion of banks insured, December 31, 1956............................................ 92-99
State banking legislation enacted in 1956......................................................... 17, 84-86
State banks members of the Federal Reserve System. See Class of bank, banking
data presented by.
State banks not members of the Federal Reserve System. See Class of bank,
banking data presented by.
State deposit insurance systems. See History of bank obligation insurance,
1908-1930.
Stockholders of banks, net profits available for. See Earnings and expenses of
insured commercial banks.
Summary of this report.........................................................................................
xv
Supervision of banks (see also Examination of insured banks):
By the Federal Deposit Insurance Corporation.............................................. vi, 3-9
State legislation, 1956........................................................................................
84
Suspensions. See Banks in financial difficulties.
Taxes paid by insured banks. See Earnings and expenses of insured commercial
banks; Earnings and expenses of insured mutual savings banks.
State legislation..................................................................................................
86
Terminations of insurance for unsafe and unsound practices.............................
5-7
Time and savings deposits. See Deposits (items referring to type of account).
Trust companies, classification o f...........................................................................
88-89
Trust departments of insured commercial banks, examination o f.......................
4
Trust powers:
Applications for..................................................................................................
State legislation..................................................................................................
8
86
Unit banks. See Number of operating banks and branches.
Unsafe and unsound banking practices................................................................xv, 5-7
Valuation reserves (see also Assets, liabilities, and capital of operating banks):
Amounts held, December 31, 1956............................................ 41-42, 104, 106, 111
Changes, 1948-1956............................. ................................ 41-42, 116-117, 138-139
Violations of law or regulations, banks charged with. See Unsafe and unsound
banking practices.
@FedFRASER