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ANNUAL REPORT OF THE

FEDERAL DEPOSIT INSURANCE CORPORATION




1966




Parts One and Two were first published
A pril 28, 1967. This volume includes also
Part Three, containing statistical tables.
O ctober 20,1967

L E T T E R OF T R A N S M I T T A L

FEDERAL DEPOSIT INSURANCE CORPORATION
W ashington, D. C., A pril 28, 1967

SIRS: Pursuant to the provisions of Section 17(a) of the Federal
Deposit Insurance Act, the Federal Deposit Insurance Corporation
is pleased to submit its report for the calendar year 1966.
Respectfully yours,

Chairman

THE PRESIDENT OF THE SENATE
THE SPEAKER OF THE HOUSE OF REPRESENTATIVES




iii

FEDERAL DEPOSIT INSURANCE CORPORATION
BOARD OF DIRECTORS
CHAIRMAN
COMPTROLLER OF THE CURRENCY
DIRECTOR

I
I
I

EXECUTIVE ASSISTANT
TO THE BOARD
ASSISTANTS

EXAMINATION
DIVISION



LIQUIDATIONS, LOANS AND
PURCHASES OF ASSETS
SPECIAL

SECRETARY
i------------------- -------------------- r
I
I
I

COMMITTEES
b o a rd " of rev ie w

AUDITOR

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

BOARD OF DIRECTORS
Chairman___________________________________________ K. A. Randall
Director_________________________________________________(Vacancy)
Com ptroller of the Currency_______________________W illiam B. Camp

OFFICIALS
Assistant to the Chairman________________________ John L. Flannery
Special Assistant to the Chairman________________________ Lynn Mah
Special Assistant to the Chairman
for Mutual Savings Banks_____________________ Raymond T. Cahill
Assistant to the D irector___________________________ Thano Dameris
Assistant to the D irector_________________________ Albert J. Faulstich
(C om ptroller of the Currency)

Chief, Division of Examination_________________Edward H. DeHority
General Counsel_____________________________________ John F. Lee
Controller___________________________________ Edward F. Phelps, Jr.
Director, Division of
Research and Data Processing_____________ F redericks. Hammer
Chief, Division of Liquidation________________________A. E. Anderson
Secretary------------------------------------------------------------------E. F. Downey
A uditor (A cting)_________________________________ John D. Roderick
Senior Advisor to the Board__________________ Raymond E. Hengren
Executive Assistant to the Board____________ Timothy J. Reardon, Jr.
Assistant to the Board_________________________ William M. Moroney
Assistant to the Board_______________________________Frank E. Tracy




O ctober 20, 1967

V

F E D E R A L D E P O S I T I N SU RA N CE CO RPO R AT IO N D I ST R I C TS

DISTRICT

OFFI CES

AND

New York
Claude C. Phillippe, 74 Trinity
Place, New York, New York 10006
Philadelphia
Alan R. M iller, Suite 972, Public
Ledger Building, 6th and Chestnut
Streets, Philadelphia, Pennsylvania
19106
Richm ond
A lb ert E. Clark, 403 East Grace
Street, Richmond, V irginia 23219
Atlanta
Lewis C. Beasley, 1000 Bank of
G eorgia Building, Atlanta,
Georgia 30303
Columbus
W illiam D. Allen, Suite 600,
Huntington Trust Building, 37 West
Broad Street, Columbus, Ohio 43215
Madison
W allace A. Ryen, 715 Tenney
Building, Madison, W isconsin 53703

DEPOSIT

EXAMI NERS

Chicago
John J. Early, 164 West Jackson
Boulevard, Chicago, Illinois 60604

Boston
Mark S. Laverick, 8th Floor,
Two Center Plaza,
Boston, Massachusetts 02108

FEDERAL

SUPERVISING

St. Louis
John Stathos, 420 Locust Building,
1015 Locust Street,
St. Louis, Missouri 63101
Memphis
Quinton Thompson, Suite 1010,
First National Bank Building,
165 Madison Avenue,
Memphis, Tennessee 38103
Minneapolis
Roger B. West, 748 Roanoke Build­
ing, Minneapolis, M innesota 55402
Kansas City
Stanley Pugh, 1708 Federal Reserve
Bank Building, Kansas City,
Missouri 64106
Dallas
Lloyd Thomas, Federal Reserve
Bank Building, Station K,
Dallas, Texas 75222
San Francisco
W alter W. Smith, Suite 3600, W ells
Fargo Building, 44 Montgomery
Street, San Francisco, California
94104

INSURANCE

CORPORATION

M a i n O f f i c e : 5 5 0 1 7 t h S t r e e t , N. W., W a s h i n g t o n , D. C. 2 0 4 2 9

Digitized for vi
FRASER


CONTENTS
Page

xi

The year in brief

PART ONE
OPERATIONS OF THE CORPORATION
Introduction ________________________________________________

3

Deposit insurance participation and coverage _____________

3

Economic and banking developments in 1966 ______________

5

Disbursements to protect depositors _______________________

10

Supervisory activities ______________________________________

15

Federal le g is la tio n __________________________________________

23

Rules and regulations of the Corporation and
statements of general p o lic y _____________________________

26

Adm inistration of the C o rp o ra tio n ___________________________

28

Finances of the C o rp o ra tio n _________________________________

29

PART TWO
LEGISLATION AND REGULATIONS
Federal banking legislation— 1966 __________________________

71

Rules and regulations of the Corporation and
statements of general policy— 1966 _____________________ 106
Statement of policy with respect to advertising by
insured state nonmember banks _________________________ 120
State banking legislation— 1966 _____________________________ 121
PART THREE
STATISTICS OF BANKS AND DEPOSIT INSURANCE
Number of banks and b ra nch e s_____________________________ 126
Assets and liabilities of banks _____________________________ 140
Income of insured b a n k s ____________________________________ 156
Banks closed because of financial difficulties;
deposit insurance d isb ursem ents_________________________ 182




vii

L I S T OF T A B L E S
Page
DEPOSIT INSURANCE PARTICIPATION AND COVERAGE:
1. Banks and branches in the United States classified by type and par­
ticipation in Federal deposit insurance, December 31, 1965 and 1966 .

4

DISBURSEMENTS TO PROTECT DEPOSITORS:
2. Insured banks closed during 1966 requiring disbursements by the Fed­
eral Deposit Insurance Corporation ___________________________________ 11
3. Protection of depositors of insured banks requiring disbursements by
the Federal Deposit Insurance Corporation, 1934-1966 _______________ 12
4. Analysis of disbursements, recoveries and losses in deposit insurance
transactions, January 1, 1934-December 31, 1966 _____________________ 14
SUPERVISORY ACTIVITIES:
5. Mergers, consolidations, acquisitions of assets and assumptions of
liabilities approved under section 18(c) of the Federal Deposit Insur­
ance Act during 1966 _________________________________________________ 17
6. Bank examination activities of the Federal Deposit Insurance Corporation
in 1965 and 1966 ______________________________________________________ 19
7. Actions to terminate insured status of banks charged with unsafe or un­
sound banking practices or violations of law or regulations, 19361966 ____________________________________________________________________ 21
15. Description of each merger, consolidation, acquisition of assets or
assumption of liabilities approved by the Corporation during 1966 ____ 35
ADMINISTRATION OF THE CORPORATION:
8. Number of officers and employees of the Federal Deposit Insurance
Corporation, December 31, 1965 and 1966 ___________________________ 28
FINANCES OF THE CORPORATION:
9. Statement of financial condition, Federal Deposit Insurance Corpora­
tion, December 31, 1966 _______________________________________________ 30
10. Statement of income and the deposit insurance fund, Federal Deposit
31
Insurance Corporation, year ended December 31, 1966 ______________
11. Determination and distribution of net assessment income, Federal De­
posit Insurance Corporation, year ended December 31, 1966 .
32
12. Sources and application of funds, Federal Deposit Insurance Corpora­
tion, year ended December 31, 1966
_______________________________ 32
13. Income and expenses, Federal Deposit Insurance Corporation, by year,
from beginning of operations, September 11, 1933, to December 31,
1966, adjusted to December 31, 1966 ______________________________
33
14. Insured deposits and the deposit insurance fund, 1934-1966 ___________ 34

v iii




Page
NUMBER OF BANKS AND BRANCHES:
Explanatory note ____________________________________________________________ 126
101. Changes in number and classification of banks and branches in the
United States (States and other areas) during 1966 _________________ 128
102. Changes in number of com m ercial banks and branches during 1966,
by State _____________________________________________________________ 130
103. Number of banking offices in the United States (States and other areas),
December 31, 1966
Grouped according to insurance status and class of bank, and
by State or area and type of office ___________________________________ 132

ASSETS AND LIABILITIES OF BANKS:
Explanatory note ____________________________________________________________ 140
104. Assets and liabilities of all banks in the United States (States and other
areas), Jun e3 0,1966
Banks grouped according to insurance status and type of b a n k ___ 142
105. Assets and liabilities of all banks in the United States (States and other
areas), December 31,1966
Banks grouped according to insurance status and type of b a n k ___ 144
106. Assets and liabilities of insured commercial and insured mutual savings
banks in the United States (States and other areas)
December ca ll dates, 1962-1966_____________________________________

146

107. Assets and liabilities of insured com m ercial banks in the United States
(States and other areas), December 31, 1966
Banks grouped by class of b a n k __________________________________ 150
108. Assets and liabilities of insured com m ercial banks operating through­
out 1966 in the United States (States and other areas), December 31,
1966
Banks grouped according to amount of deposits _________________

151

109. Average assets and liabilities of insured com m ercial banks in the United
States (States and other areas), by State, 1966 ____________________ 152
110. Distribution of insured com m ercial banks in the United States (States
and other areas), December 31,1966
Banks grouped according to amount of deposits and by ratios of
selected items to assets and d e p o s its ________________________________ 154




Page
INCOME OF INSURED BANKS:
Explanatory

note

___________________________________________________________ 156

111. Income of insured com m ercial banks in the United States (States and
other areas), 1958-1966 _____________________________________________ 158
112. Ratios of income of insured com mercial banks in the United States
(States and other areas), 1958-1966 _______________________________ 160
113. Sources and disposition of total income, insured com m ercial banks in
the United States (States and other areas), 1958-1966 _______________ 161
114. Income of insured comm ercial banks in the United States (States and
other areas), 1966
Banks grouped by class of b a n k __________________________________ 162
115. Income of insured commercial banks operating throughout 1966 in the
United States (States and other areas)
Banks grouped according to amount of deposits _________________ 164
116. Ratios of income of insured comm ercial banks operating throughout
1966 in the United States (States and other areas)
Banks grouped according to amount of d e p o s its ____________________ 166
117. Income of insured commercial banks in the United States (States and
other areas), by State, 1966 __________________________________________ 168
118. Income of insured mutual savings banks, 1958-1966 __________________

178

119. Ratios of income of insured mutual savings banks, 1958-1966 __________ 180
120. Sources and disposition of total income, insured mutual savings banks,
1958-1966 ____________________________________________________________ 181

BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES;
DEPOSIT INSURANCE DISBURSEMENTS:
Explanatory note ____________________________________________________________ 182
121. Number and deposits of banks closed because of financial difficulties,
1934-1966 ____________________________________________________________ 184
122. Insured banks requiring disbursements by the Federal Deposit Insurance
Corporation during 1966 ____________________________________________ 185
123. Depositors, deposits and disbursements in insured banks requiring dis­
bursements by the Federal Deposit Insurance Corporation, 1934-1966
Banks grouped by class of bank, year of deposit payoff or deposit
assum ption, amount of deposits, and State __________________________ 186
124. Recoveries and losses by the Federal Deposit Insurance Corporation
on principal disbursements for protection of depositors, 1934-1966 __ 188

X




THE YEAR IN BRIEF
The 13,873 banks insured by the Corporation at the end of 1966,
consisting of 13,541 commercial banks and 332 mutual savings
banks, represented about 97 percent of all banks and banking
assets in the nation.
The Corporation’s insurance fund at the year-end totaled $3,252
million, amounting to 0.81 percent of total deposits in insured banks,
and 1.39 percent of estimated insured deposits.
In 1966, seven insured banks were closed due to financial diffi­
culties, requiring disbursements by the Corporation of $15.1 m illion
to protect their approximately 95,000 depositors.
Effective October 16,1966, the maximum insurance per depositor
in an insured bank was increased by statute from $10,000 to
$15,000. Results of a survey of deposits on June 30,1966, indicated
that, had the higher maximum been in effect on that date, nearly
99 percent of depositors in insured banks would have been fully
protected and 58 percent of deposits insured.
The Corporation conducted 13,663 field examinations and in­
vestigations during the year. Federal legislation affecting bank
supervision in 1966 included amendments to the Bank Merger Act
of 1960 and the Bank Holding Company Act of 1956. Also, PL 89597 provided, on a temporary basis, additional flexib ility to the
Federal Reserve and the Corporation in establishing maximum
interest rates payable by insured banks on deposits; and under
the Financial Institutions Supervisory Act of 1966 the Federal
banking agencies were provided the means for more effective
bank supervision through a grant of authority to issue cease-anddesist orders in certain situations.
Against a background of tightened monetary conditions and
increasing competition among lenders for funds in 1966, the Cor­
poration amended its regulations defining some types of deposits
and modified the maximum rates payable by nonmember insured
banks on certain time deposits. Late in the year the Corporation
issued a statement of policy with respect to advertisements for
funds by banks under its supervision.
During 1966 the total number of banks declined by 33, while
branch offices increased by 1,211. Total assets of insured com­
mercial banks rose during the year by over 7 percent to $403
billion. Almost two-thirds of the increase in deposits of these banks
occurred in the time and savings category. The banks’ net income
after taxes amounted to $2.7 billion, up nearly 7 percent from 1965,
and provided a return of 8.7 percent on total capital accounts.




xi




OPERATIONS
OF THE CORPORATION




PART ONE




3

INTRODUCTION
The Federal Deposit Insurance Corporation has reached an
age where it can both view its beginnings with nostalgia and look
forward with confidence to its role in the future. It still numbers a
dozen employees who remember the hectic task of examining
nearly 7,800 applicant banks prelim inary to their qualifying for in­
surance when coverage became effective on January 1, 1934. On
the other hand, 39 percent of the Corporation’s present employees
were not yet born when Federal deposit insurance went into effect.
This is another way of saying that a complete generation has grown
up which has had no experience with the flood of bank failures
that brought the Corporation into existence. As the new genera­
tion has grown up, deposit insurance has been accepted as an
integral part of our banking environment.
A decade of banking difficulties had culminated in 4,000 fail­
ures in 1933, and there was concern over the survival of our bank­
ing system as it was then structured. Insurance was accepted as a
moderate step which, through a limited guarantee of deposits,
would instill enough confidence on the part of the public to pre­
serve the banking structure and give banks time to rehabilitate
themselves.
The concept worked. Bank failures have been sharply reduced,
with minimum loss to depositors and the FDIC. This has occurred
in part because of the confidence flowing from deposit insurance
and in part because of close and continuing supervision of banks.
The favorable economic environment during most of the Corpora­
tio n ’s existence has also contributed significantly to the reduction
of bank failures. Even so, it is clear that bank failures can still cause
distress in the communities affected and have a marked impact on a
generation unaccustomed to bank failure.
The Corporation’s activities have always been focused in two
main areas: fulfilling its insurance obligations and carrying out its
supervisory responsibilities. The form er activity is still crucial,
though the occasions for actively protecting depositors have been
significantly less frequent since the first decade of insurance.
Supervision has always been important, but its emphasis has
changed in part, reflecting changes in the character of banking
risks, the accretion of new responsibilities, and increasing atten­
tion to the modernization of the banking system.
DEPOSIT INSURANCE PARTICIPATION AND COVERAGE
Participation. Participation in Federal deposit insurance has
always been high, ranging from 86 percent of all banks at the be­



FEDERAL DEPOSIT INSURANCE CORPORATION

4

ginning of insurance to 97 percent at the end of 1966, when 13,873 banks were insured by the Corporation.
To be eligible for Federal deposit insurance, an institution must
be a domestic, corporate entity which is authorized to engage in
the business of receiving deposits. To obtain insurance, it must
meet certain criteria specified by statute and applied by the appro­
priate Federal banking agency. National banks and State banks
that are members of the Federal Reserve System are automatically
insured as a corollary of that status. State banks that are not
members of the Federal Reserve System become insured upon
application to and approval by the Corporation’s Board of Direc­
tors. About one-third of the insured banks are national banks. Of
the State insured banks, about one-seventh are members of the
Federal Reserve System. The numbers of banks and branches in
the United States, classified by insurance status, are shown in
Table 1.
Table 1. BANKS AND BRANCHES IN THE UNITED STATES CLASSIFIED BY
TYPE AND PARTICIPATION IN FEDERAL DEPOSIT INSURANCE,
DECEMBER 31, 1965 AND 1966
Com m ercial banks and nondeposit
tru s t companies

A ll banks

M utual savings
banks

Insured
M em bers FRS
Type of office
and date

Total

Insured

Non­
insured

National

State

Not
members
FRS

Non­
insured

Insured

insured

32,136
30,958

31,491
30,306

645
652

14,436
13,801

4,867
4,738

11,241
10,854

328
343

947
913

317
309

14,291
14,324

13,873
13,876

418
448

4,799
4,815

1,350
1,405

7,392
7,327

244
271

332
329

174
177

17,845
16,634

17,618
16,430

227
204

9,637
8,986

3,517
3,333

3,849
3,527

84
72

615
584

143
132

All banking
offices
Dec 31, 1966
Dec 31, 1965

Banks
Dec 31, 1966
Dec 31, 1965

Branches
Dec 31, 1966
Dec 31, 1965

The number of banks not participating in Federal deposit insur­
ance continued to decline in 1966, and totaled 418 by the end of the
year. Over two-fifths of these, or 174, were mutual savings banks;
all but four of the latter were in Massachusetts and insured by that
State’s insurance system. Most of the remaining institutions were
ineligible for insurance, either because of their unusual nature or
because of their inability or disinclination to meet insurance stand­
ards.
Coverage. The amount of insurance afforded each depositor in
an insured bank is limited by statute. This lim itation was initially
$2,500; in mid-1934 it was raised to $5,000, in 1950 to $10,000, and



DEPOSIT INSURANCE PARTICIPATION AND COVERAGE

5

on October 16, 1966 to the present maximum of $15,000. Within an
insured bank, a depositor is currently protected up to $15,000 on
each deposit maintained in the same right or capacity.
The number of accounts fully protected within the insurance lim ­
itation has always been high. On June 30, 1966, the date of the
latest survey of deposits undertaken by the Corporation, 97 percent
of the 193 million accounts in insured banks were fully protected
under the applicable $10,000 maximum. The subsequent increase
to the $15,000 maximum is estimated to have raised the proportion
of accounts fully protected to nearly 99 percent of all accounts.
The relatively few accounts that exceed the insurance lim ita­
tion often do so by a substantial amount. Consequently, the pro­
portion of total deposits which is insured has always been sig­
nificantly less than the proportion of accounts fully protected. The
June 30, 1966 survey showed that 54 percent of the dollar amount
of deposits in insured banks was within the $10,000 limitation.
Had the $15,000 maximum been in effect on that date, it is esti­
mated that the percentage would have risen to 58 percent.
ECONOMIC AND BANKING DEVELOPMENTS IN 1966
The operations of the Corporation are carried on against the
background of a constantly changing economic and financial en­
vironment. In recent years banks have become more competitive
with other financial intermediaries, and the Corporation, as a con­
sequence, has had to view its responsibilities in a broader context.
Economic developments in 1966, in particular, presented unusual
challenges to the supervisory agencies.
Prosperity brings pressures. The year 1966 was one of high eco­
nomic achievement in the midst of mounting pressures. Buoyant
economic activity brought record levels of production, employ­
ment, and income to the American economy. Gross national prod­
uct amounted to a record $740 billion, an increase of 8.6 percent
over 1965— or a real gain of 5.4 percent after allowing for price ad­
vances during the year. Unemployment fell to the lowest rate in 13
years as civilian employment reached 74 million. Notwithstanding
the rise in consumer prices and a slight decline in the rate of in­
crease in productivity, real per capita income at the disposal of
individuals advanced 3.6 percent.
The performance extended into its sixth straight year the re­
covery that began in 1961. During this period the economy has
grown at an annual rate in excess of 5 percent. In most of the
period the economy operated with a significant margin of idle in­
dustrial capacity and a substantial number of unemployed. In this
environment, much of the growth before 1965 was accomplished



6

FEDERAL DEPOSIT INSURANCE CORPORATION

through absorption of formerly idle resources, with relatively mod­
erate impact on prices and financial markets. As this cushion of
unused resources thinned, however, the persistent expansion in
economic activity after mid-1965 produced strains that began to
be reflected in rising prices and interest rates.
The pressures which plagued much of 1966, while reflecting
the momentum of five years of expansion, had their particular
origin in a conjunction of forces which arose around the middle
of 1965. Additional fiscal stimuli had been injected in the form of
lower excise taxes and more liberal social security benefits, which
took effect in the last half of 1965. Then, stepped-up activity in
Vietnam announced in July 1965 resulted in a boost in defense
outlays and commitments.
Restraints. Economic activity accelerated during the final months
of 1965, fueled both by an ample supply of credit and expansionary
fiscal policies. In December the Federal Reserve raised the re­
discount rates to 41 percent. On the fiscal front, increases in non­
/2
defense expenditures were kept within bounds; some of the earlier
excise tax reductions were rescinded; income taxes on individuals
were subjected to more steeply graduated withholding; and cor­
porate tax payments were speeded up. Moreover, additional pay­
roll taxes under the social insurance program, provided for in
1965, became effective at the beginning of 1966.
The most conspicuous weak spot in 1966 was the decline in
residential construction; private housing starts fell from a season­
ally adjusted annual rate of 1.6 million units in January to a 20-year
low of 848,000 in October. The most buoyant sector, on the other
hand, was fixed capital investment by business, which posted a
17 percent increase for 1966. The vigor of this demand, indeed,
led in October to Congressional suspension of both accelerated
depreciation on new buildings and the 7 percent tax credit for
investment in machinery and equipment.
Credit markets under stress. With the economy moving forward
in 1966 at high speed, after several years of above average growth,
it is not surprising that demands on the money and capital markets
were heavy. As the year progressed, the demand for funds was
greater than expected, and the availability of funds failed to keep
pace. On the demand side, business borrowing quickly moved
ahead as business firms revised upward their plans for acquiring
new plant and equipment. Increased physical volume of produc­
tion and sales required additional financing of inventories and
receivables, and rising prices required increased dollar investment
per physical unit. Meanwhile, nonresidential construction was ad­
vancing, and an increasing proportion of these projects had to be
externally financed. The flow of funds into the markets began to



ECONOMIC AND BANKING DEVELOPMENTS IN' 1966

7

fall well short of the volume sought by prospective borrowers.
Developments in the economy by late 1965 had resulted in
mounting pressures on prices, accompanied by strains in the
money market. At the time the Federal Reserve raised its redis­
count rates to 41 percent, it also revised its Regulation Q, and
/2
the FDIC revised its Regulation 329, increasing to 5 1 percent the
/2
maximum permissible rate which insured commercial banks could
pay on time deposits other than savings accounts. These revisions
were intended to enhance the ability of banks to compete for funds
with the money and capital markets.
During the early months of 1966 interest rates rose rapidly,




FEDERAL DEPOSIT INSURANCE CORPORATION

8

with short-term rates for the most part leading and long-term rates
lagging, as indicated in Chart A. The rising rates reflected the un­
usual pressure on commercial banks to finance their business cus­
tomers. The larger banks especially were faced with unprecedented
loan demands, greater than they could meet by additional sales of
their U. S. Government security holdings or by the sale of market­
able certificates of deposit at or near the ceiling rate. Credit de­
mands spilled over into the securities markets, already under
pressure from a growing volume of public and private offerings.
As yields available on securities rose, individuals and other in­
vestors began to accelerate their purchases, either drawing down
CHART B

THE SECURITIES MARKET
ATTRACTED A SIGNIFICANT SHARE OF SAVINGS IN 1966
CHANGE BY QUARTERS,
1964-1966

TIME DEPOSITS-COMMERCIAL BANKS

DEPOSITS-MUTUAL SAVINGS BANKS

1966

SAVINGS AND LOAN SHARES




NET ACQUISITIONS
OF SECURITIES BY INDIVIDUALS

ECONOMIC AND BANKING DEVELOPMENTS IN 1966

9

their accumulated savings balances or diverting their current sav­
ings from banks and other savings institutions into securities, as
shown in Chart B. For a time the large commercial banks were able
to meet market competition by raising rates and shortening the
maturities of their marketable certificates of deposit, but by summer
many had reached the 51 percent ceiling and practically ex­
/2
hausted this means of raising new funds. Meanwhile, a few of the
larger banks and a growing number of smaller banks had begun
to issue automatically renewable m ultiple-m aturity certificates, in
sm aller denominations, and at rates up to 51 percent. These gave
/2
the depositor something very close to a passbook savings account,
but with a much higher yield. Thus many commercial banks were
offering rates at least as attractive as those paid by other savings
institutions.
Savings institutions meanwhile were continuing to try to meet
mortgage loan demands. Many of them were already paying about
as high a return as possible in view of the yields they were ob­
taining on their portfolios of long-term loans, most of which had
been acquired when interest rates were much lower. Unable or
unwilling to compete for funds on a rate basis with commercial
banks, or with the securities markets, savings institutions were
forced to restrict their lending, thus passing on to home-buyers,
home-sellers and home-builders the burden of the credit squeeze.
Moderating the rise of interest rates. Against this background,
the Corporation took action in July in support of efforts being made
by the Federal Reserve to lim it interest rate competition among
financial institutions. The maximum rate payable by nonmember in­
sured commercial banks on m ultiple-m aturity time deposits was
reduced from 51 percent to 5 percent on such deposits payable in
/2
90 days or more, and to 4 percent on such deposits payable in less
than 90 days. Under legislation then in effect, however, neither the
Federal Deposit Insurance Corporation nor the Federal Reserve
Board had the power to reduce ceiling rates on what came to be
known as savings-type certificates of deposit without also reducing
the ceiling on the large, negotiable certificates. To have reduced
this ceiling would have put many banks under severe pressure as
billions of dollars of such certificates matured and could not be
replaced under the then current rate pattern. It was apparent that
existing regulatory powers of the supervisory agencies were in­
adequate to deal with the situation.
Effective September 21, a bill was enacted by the Congress
providing the regulatory agencies with more flexibility in setting
rate ceilings, and bringing savings and loan associations under rate
regulation. The supervisory authorities were authorized to estab­
lish differential rate ceilings according to various criteria, and were



10

FEDERAL DEPOSIT INSURANCE CORPORATION

directed to consult with each other with the view to coordinating
their actions.
The provision of most immediate significance in the new statute
was the authority given to the regulatory agencies to establish a
differential ceiling by size of certificate. Accordingly, the Federal
Reserve and the Federal Deposit Insurance Corporation maintained
a 5V2 percent maximum for single-maturity certificates of $100,000 or more, but for certificates of smaller amounts the ceiling
rate was dropped to 5 percent. Effective October 1, the Corpora­
tion also prescribed a 5 percent maximum rate on dividends or in­
terest paid by insured mutual savings banks. At the same time, the
Federal Home Loan Bank Board set differential ceilings on dividend
rates payable by insured savings and loan associations, varying
geographically and in other ways but generally somewhat higher
than ceilings for commercial banks.
Shortly before the new regulations became effective, market
rates of interest reached their peak and subsequently began a
gradual decline. New flotations of security issues were reduced,
and yields on outstanding issues softened. Meanwhile, the Federal
Reserve requested that member banks restrain their loan commit­
ments and maintain their holdings of securities. Also in September
the reserve requirement on time deposits in member banks in
excess of $5 million was increased from 5 percent to 6 percent;
in July the requirement had been raised from 4 percent to 5 per­
cent. Near the end of the year, however, the decline in mortgage
demand accompanying the drop in residential construction activity
had brought market forces into better balance, while suspension of
the investment tax credit and the moderation of expansionary pres­
sures enabled the Federal Reserve to take a less restrictive stance.
DISBURSEMENTS TO PROTECT DEPOSITORS
Bank failures in 1966. During 1966 the Corporation disbursed
$15 million to protect depositors of seven failing banks, the largest
sum expended for that purpose for any year but one since 1941. As
in other recent years, managerial weakness and illegal practices
in the banks involved, rather than economic conditions, were p ri­
marily responsible for the failures. It is usually difficult to identify
the basic or proximate causes of failure, for by the time a bank has
reached the failing stage, it has usually experienced a number of
problems. Among the practices contributing to failure in 1966 may
be noted misuse of funds by bank officials, kiting operations, col­
lusion with borrowers, contests for bank control, the extension of
substandard, high-risk loans, expensive promotions, and operating
with inadequate capital.



11

DISBURSEMENTS TO PROTECT DEPOSITORS

The seven insured banks requiring FDIC assistance in 1966 fall
into two general types. Five were small banks in communities of
no more than 500 population which each had served for over 50
years. The other two banks had been established within the past
decade and were located in metropolitan areas; one of them was
the largest bank to fail since 1933. Table 2 gives the name, loca­
tion, and other information about each of these banks.
The seven banks failing in 1966 had approximately 95,000 de­
posit accounts and $103 m illion in deposits. Paralleling the failure
pattern in 1965, one bank alone accounted for 90 percent of these
deposits. In one case, the Corporation paid off depositors directly
up to the insurance lim it— then $10,000. In the other six cases, de­
positors were fully protected by virtue of different methods of as­
sistance used by the Corporation. In four of the failures occurring
in 1966, banking facilities were maintained at the location of the
failed bank, either by establishment of branches or a new bank.
Deposit insurance national banks. Establishment of Deposit In­
surance National Banks is one of the means available to the Cor­
poration for providing banking service to a community when a bank
fails. Services provided by this means are limited and temporary.
Table 2. INSURED BANKS CLOSED DURING 1966 REQUIRING
DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION 1

Case
number

Name and
location

Date of
closing
or deposit
assumption

Amount of
deposits
(in thou­
sands)2

95,4244

T o ta 1..........................

Number
of de­
positors'
accounts

$103,5234

FDIC
disbursement
(in thou­
sands)
$15,071

Depositors Deposits
receiving
paid
full re­
(in thou­
covery
sands)3
95,4244

$103,5234

D e p o s it p a y o ff
278

Citizens Bank,
Pottsville, Arkansas

January 24,1966

1,012

774

732

997

767

3,0724

2,9664

D e p o s it a s s u m p tio n
115

Five Points
National Bank,
Miami, Florida

January 12, 1966

3,0724

2,9664

207

Blanket State Bank,
Blanket, Texas

January 31,1966

1,556

1,183

818

1,556

1,183

208

Saguache County
National Bank,
Saguache, Colorado

March 17,1966

712

725

472

712

725

209

Bank of Gray Summit, April 7, 1966
Gray Summit, Missouri

3,630

1,834

1,021

3,630

1,834

279

Public Bank,
Detroit, Michigan

October 12,1966

83,044

92,960

10,000

83,044

92,960

116

First State Bank,
of Tuscola,
Tuscola, Texas

October 17, 1966

2,398

3,081

811

2,398

3,081

1,217

1 Figures adjusted to and as of December 31,1966.
2 Includes certain certificates of deposit carried on the books of some of the closed banks as deposits which are in
litigation.
3 Includes $732 thousand paid by FDIC claim agents in deposit payoff cases. All deposits were made available in
full through assuming banks, with FDIC assistance, in deposit assumption cases.
4 Revised from first printing of Part One of this Report.




12

FEDERAL DEPOSIT INSURANCE CORPORATION

Two such banks organized in 1964 to serve this purpose were
closed during 1966, in accordance with the statutory requirement
that such a bank be liquidated if it is not transferred to private
ownership within two years of its establishment.
Banks failing and depositors protected, 1934-1966. Since the
beginning of Federal deposit insurance, the Corporation has made
disbursements to protect depositors in 466 failing banks. These
banks had approximately 1.6 m illion depositors or accounts and de­
posits totaling $804 million. The extent and method of protection
are shown in Table 3.

Table 3. PROTECTION OF DEPOSITORS OF INSURED BANKS REQUIRING
DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,
1934-1966

Item

Deposit payoff
cases
(276 banks)

All cases
(466 banks)

Deposit
assumption cases
(190 banks)

Number or
amount

Percent

Number or
amount

Percent

Number or
amount

Percent

N u m b e r o f d e p o s ito r s o r a c c o u n ts
— t o t a l 1..................................................

1,627,868

100.0%

497,269

100.0%

1,130,599

100.0%

F u ll re c o v e ry re c e iv e d o r a v a il­
a b l e ......................................................
From FD IC 2................................................
From offset 4..............................................
From security or preference 5.................
From asset liquidation 6...........................

1,616,060
1,570,686
39,597
2,947
2,830

99.3
96.5
2.4
.2
.2

485,461
440,0873
39,597
2,947
2,830

97.6
88.5
7.9
.6
.6

1.130.599
1.130.599

100.0
100.0

F u ll re c o v e ry n o t re c e iv e d a s o f
D e c e m b e r 3 1 , 1 9 6 6 .................

11,808

.7

11,808

2.4

Terminated cases......................................
Active cases 7..............................................

3,295
8,513

.2
.5

3,295
8,513

.7
1.7

A m o u n t o f d e p o s its (in th o u s a n d s )
— t o t a l ......................................................

$805,366

100.0%

$235,118

100.0%

$570,248

P a id o r m a d e a v a i la b le ..................

779,287

96.8

209,039

88.9

570,248

100.0

By FD IC 2 ....................................................
By offset 9 ...................................................
By security or preference 10....................
By asset liquidation 11..............................

725,640
12,503
24,284
16,860

90.1
1.6
3.0
2.1

155,392s
12,503
24,284
16,860

66.1
5.3
10.3
7.2

570,248

100.0

N o t p a id a s o f D e c e m b e r 31',
1 9 6 6 ......................................................

26,079

3.2

26,079

11.1

Terminated cases.........................................
Active cases 12.............................................

1,848
24,231

.2
3.0

1,848
24,231

.8
10.3

100.0%

1 Number of depositors in deposit payoff cases; number of accounts in deposit assumption cases.
2 Through direct payment to depositors in deposit payoff cases; through assumption of deposits by other insured banks,
facilitated by FDIC disbursements of $212,876 thousand, in deposit assumption cases.
3 Includes 57,991 depositors in terminated cases who failed to claim their insured deposits (see note 8).
4 Includes only depositors with claims offset in full; most of these would have been fully protected by insurance in the
absence of offsets.
5 Excludes depositors paid in part by FDIC whose deposit balances were less than the insurance maximum.
6 The insured portions of these depositor claims were paid by the Corporation.
7 Full recovery available to 8,344 of these depositors.
8 Includes $202 thousand unclaimed insured deposits in terminated cases (see note 3).
9 Includes all amounts paid by offset.
10 Includes all secured and preferred claims paid from asset liquidation; excludes secured and preferred claims paid
by the Corporation.
11 Includes unclaimed deposits paid to authorized public custodians.
12 Includes $9,989 thousand representing deposits available but unclaimed, expected through offset, or expected
from proceeds of liquidations; and $344 thousand representing up to $10,000 of each of certain certificates of deposit
whose insured status is in litigation.
Note: Includes revision indicated in footnote 4 of Table 2.




DISBURSEMENTS TO PROTECT DEPOSITORS

13

In 190 of these cases, the deposit liabilities of the failing bank
were assumed by another insured bank, with the Corporation taking
over by purchase or loan the assets of the distressed bank un­
acceptable to the absorbing bank. Under this procedure, deposits
are immediately available in full to all depositors.
In the remaining 276 cases, the banks were closed by the char­
tering agency, and the Corporation paid off depositors directly up
to the insured maximum. Reflecting changes since 1934 in maxi­
mum coverage, one case provided protection up to $2,500 for
each depositor, 244 cases up to $5,000, and 31 cases up to $10,000.
The payoff method of protection has been used in about 60 percent
of the failing bank cases. These have ordinarily been the smaller
banks, which had about 30 percent of the depositors and a like per­
centage of the deposits in all failed bank cases.
As of the end of 1966, 96.8 percent of all deposits in failed bank
cases had been paid or made available. Of the amount not then
paid, over one-third was available but unclaimed; recovery of the
remainder depends on the outcome of the liquidation process. As
indicated in Chart C, losses to depositors in failing banks have
been small during the period of the Corporation’s operation.

CHART C

LOSSES TO DEPOSITORS AND TO THE FDIC
THROUGH 1966 HAVE BEEN SMALL IN CLOSED
INSURED BANKS




TOTAL DEPOSITS

DISBURSEMENTS

$805,366,000

BY FDIC

LOST BY FDIC $47,895,000

LOST OR N O T Y E T AVAILABLE
TO DEPOSITORS $26,079,000

14

FEDERAL DEPOSIT INSURANCE CORPORATION

Corporation disbursements and losses, 1934-1966. In return for
the disbursements made in failing bank cases, the Corporation
acquires assets, which it liquidates, or the claims of depositors
whose insured deposits it has paid. In receivership cases the Cor­
poration shares pro rata with other creditors in the proceeds from
the liquidation.
At the end of 1966, some assets were yet to be liquidated from
36 failed bank cases. These active cases account for most of the
accounts and deposits indicated as not yet paid in Table 3. Ex­
cluding these, and considering only terminated cases, only 0.2
percent of the deposits in all closed insured banks had not been
paid by the end of 1966.
The Corporation had disbursed or provided for disbursements
of $421 m illion in its insurance operations through 1966. Actual and
anticipated recoveries through the end of 1966 totaled $373 million,
resulting in losses to the Corporation estimated at $48 m illion, ex­
cluding $9 m illion of interest and allowable return recovered on
the Corporation’s advances. Details of Corporation disbursements,
recoveries and losses are shown in Table 4.

Table 4. ANALYSIS OF DISBURSEMENTS, RECOVERIES AND LOSSES
IN DEPOSIT INSURANCE TRANSACTIONS,
JANUARY 1, 1 9 3 4 -DECEMBER 31, 1966
(In thousands)
Disbursements

Recoveries1

Losses

A ll d is b u r s e m e n ts — t o t a l ....................................................................

$421,233

$373,338

$47,895

P r in c ip a l d is b u r s e m e n ts in d e p o s it a s s u m p tio n a n d
p a y o ff c a s e s — t o t a l ....................................................................

$368,570

$323,346

$45,224

$212,876 |

$186,462 1
8,373 /

$18,041

155,201 \
493 /

120,231 \
8,280 /

27,183

Type of disbursement

Loans and assets purchased (190 deposit assumption cases):
To December 31, 1966.............................................................................
Estimated additional................................................................................
Deposits paid (276 deposit payoff cases):
To December 31, 1966...........................................................................
Estimated additional..............................................................................
A d v a n c e s a n d e x p e n s e s in d e p o s it a s s u m p tio n a n d
p a y o ff c a s e s — t o t a l .....................................................................

$ 50,596

$ 47,557

5 3,039

Expenses in liquidating assets in deposit assumption cases:
Advances to protect assets...................................................................
Liquidation expenses.............................................................................
Insurance expenses................................................................................
Field payoff and other insurance expenses............................................

$ 32,883
14,674
360
2,679

$ 32,883
14,674
(2)
(2)

360
2,679

O th e r d is b u r s e m e n ts — t o t a l .........................................................

$ 2,067

$ 2,435

$ (368)

$ 1,772 |

$ 2,420 \
15 J
(2)

$

Assets purchased to facilitate termination of liquidations:
To December 31,1966.............................................................................
Estimated additional................................................................................
Unallocated insurance expenses................................................................

295

(663)
295

1 Excludes amounts returned to closed bank equity holders and $9.3 million of interest and allowable return received
by the Corporation.
2 Not recoverable.




SUPERVISORY ACTIVITIES

15

SUPERVISORY ACTIVITIES
The major role played by banks in the nation’s financial struc­
ture has long subjected them to some measure of public super­
vision. Through the acceptance, creation and payment of deposits
they perform a vital monetary function, and provide funds to meet
the myriad demands for credit of a dynamic economy.
Banks within the jurisdiction of the C orporation’s supervisory
responsibility must obtain its permission to take several types of
action, such as the establishment of branches or merger with
another bank. They are subject to examination by the Corporation
and to certain sanctions, notably cease-and-desist orders and
termination of insurance. They are also required to subm it various
types of reports, and are subject to the interest rate regulations
applicable to savings and time deposits.
Applications for deposit insurance. Banks chartered as national
banks, and State banks becoming members of the Federal Re­
serve System, acquire insured status without application to the
Federal Deposit Insurance Corporation. Banks chartered by the
States and not members of the Federal Reserve, as well as unin­
sured operating banks, become insured upon application to and
approval by the Corporation. The following factors, specified by
statute, must be considered by the responsible supervisory agency
with respect to banks seeking to be admitted to deposit insurance:
(1) the financial history and condition of the bank, (2) the adequacy
of its capital structure, (3) its future earnings prospects, (4) the
general character of its management, (5) the convenience and
needs of the community to be served by the bank, and (6) the con­
sistency of its corporate powers with the purposes of the Act.
During 1966, the Corporation approved a total of 104 applica­
tions for admission to insurance, including 80 new banks and 24
existing banks.
Applications for branches. In giving approval for the establishment
of branches of insured banks not members of the Federal Reserve
System, the Corporation must consider the same six factors enum­
erated above. A total of 397 applications for new branches was ap­
proved by the Corporation in 1966, 14 percent more than in 1965.
An additional 28 branches resulted from mergers approved by the
Corporation.
For several years the number of banking offices has been stead­
ily rising, a trend which reflects many factors, including the growth
of population and shifts in the locational patterns of population.
Most of the increase in offices in recent years has been as new
branches.
Merger transactions. Bank merger transactions have been one
of the more active areas of bank supervision in recent years, re


16

FEDERAL DEPOSIT INSURANCE CORPORATION

fleeting the Federal supervisory agencies’ increased responsibility
under the 1960 amendment to the Federal Deposit Insurance Act.
Under this amendment, an insured bank must obtain approval of
one of the Federal banking agencies to engage in any merger,
consolidation, acquisition of assets or assumption of liabilities trans­
action. The C orporation’s approval is required if the surviving bank
is a nonmember insured bank, or in a merger of any insured bank
with a noninsured institution.
An amendment in 1966 provided that, in passing upon each ap­
plication, the responsible agency shall consider several specific
factors, including the effect of the transaction on competition,
financial and managerial resources, future prospects of the exCHART D

FDIC HAS ACCOUNTED FOR ABOUT ONE-FOURTH OF
FEDERAL AGENCY APPROVALS OF BANK MERGERS SINCE 1960
H3

APPROVED BY COMPTROLLER OF CURRENCY
APPROVED BY FEDERAL RESERVE BOARD
APPROVED BY FDIC

1960*

1961

1962

1963

1964

1966

•Period beginning May 13, 1960 to end of year.

isting and proposed institutions, and the convenience and needs
of the community to be served. A merger proposal whose effect is to
substantially lessen competition may be approved if the anticom­
petitive factor is clearly outweighed in the public interest by the
convenience and needs of the community served.
Chart D shows the merger applications approved each year
since 1960 by the three Federal agencies. An analysis of appli­
cations approved by the Corporation indicates that, for absorbing
banks, the desire to expand services to customers and to gain rep­
resentation in certain localities through branches was im portant in



SUPERVISORY ACTIVITIES

17

many cases. The reasons most often cited in the case of absorbed
banks included the problem of management succession, poor earn­
ings performance, and inability to provide adequate banking ser­
vices or to meet competition.
During 1966, as shown in Table 5, the Federal banking agencies
approved mergers involving 255 banks, including 119 absorbing
banks and 136 absorbed banks. The Corporation approved cases
involving 71 banks, including 35 absorbing banks and 36 absorbed
banks. Details of each case approved by the Corporation in 1966
are shown in Table 15.
Table 5. MERGERS, CONSOLIDATIONS, ACQUISITIONS OF ASSETS
AND ASSUMPTIONS OF LIABILITIES APPROVED UNDER SECTION 18(c)
OF THE FEDERAL DEPOSIT INSURANCE ACT DURING 1966
Offices operated2
Banks

Number
of banks1

Resources
(in thousands)2

Prior to
transaction

ALL CASES
Banks involved..........................................
Absorbing banks......................................................
Absorbed banks.......................................................
National.................................................................
State banks members FRS................................
Not members FRS...............................................
Noninsured institutions......................................

2553
1194
1363
55
22
52
74

$21,760,374
2 0 ,114,9074
1,645,467
506,722
281,869
836,044
20,8324

1,930
1,6884
242
105
40
93
44

1,920
1,9204

CASES WITH RESULTING BANK
A NATIONAL BANK5
Banks involved...........................................
Absorbing banks......................................................
Absorbed banks.......................................................
National.................................................................
State banks members FRS................................
Not members FRS...............................................
Noninsured institution....................... ................

1436
64
79
41
13
24
1

$ 9,607,8746
8,815,000
792,874
402,756
168,165
215,222
6,731

1,032
885
147
82
24
40
1

1,026
1,026

CASES WITH RESULTING BANK A
STATE BANK MEMBER OF THE
FEDERAL RESERVE SYSTEM
Banks involved...........................................
Absorbing banks......................................................
Absorbed banks.......................................................
National.................................................................
State banks members FRS................................
Not members FRS...............................................
Noninsured institution.......................................

43
21
22
4
7
10
1

$ 8,487,900
7,874,300
613,600
39,600
78,000
495,800
200

548
500
48
10
14
24
(nonoperating)

CASES WITH RESULTING BANK NOT
A MEMBER OF THE
FEDERAL RESERVE SYSTEM7
Banks involved..........................................
Absorbing banks......................................................
Absorbed banks.......................................................
National.................................................................
State banks members FRS................................
Not members FRS...............................................
Noninsured institutions......................................

71
35
363
10
2
18
63

$'4,068,793
3,823,069
245,724
64,366
35,704
125,022s
20,632

387
339
48
13
2
298
4

After
transaction

548
548

383
383

1 The number of absorbing banks is smaller than the number of cases, because a few banks participated in more
than one case.
2 Where an absorbing bank engaged in more than one transaction, the resources included are those of the bank before
the latest transaction, and the number of offices before the first and after the latest transaction.
3 Includes 4 institutions other than banks (1 savings and loan association and 3 safe deposit companies).
4 Merger case No. 13 in Table 15 was reported also as an approved case by the Office of the Comptroller of the Cur­
rency. This case is included only once in the totals in this table.
5 Includes two cases effective on Jan. 1, 1966 approved in 1965; excludes two cases effective on Jan. 1, 1967
approved in 1966.
6 Some data in this gro up, reflected also in totals, have been revised since the first printing of Part One of this Report.
7 Includes five cases approved by the Corporation of absorptions of noninsured institutions by member banks.
8 In one case an approved new bank absorbed a branch of a State nonmember bank; resources and office of branch
are included in this table.




FEDERAL DEPOSIT INSURANCE CORPORATION

18

Other applications. Other activities for which insured nonmember
banks must obtain the Corporation’s approval include any change
in the location of a main office or branch, retirement or adjustment
of capital, or change in a bank’s corporate powers.
Bank examinations. Examinations are one of the oldest and most
significant tools of bank supervision. They are the instrument by
which the Corporation seeks to attain and maintain, within its
scope, the conditions of sound banking essential to the viability
of deposit insurance. Examinations provide the Corporation with
information concerning its insurance risk and alert it to conditions
which may require corrective measures.
Though certain quantitative measures are employed in examina­
tions, the examination is basically a qualitative appraisal of the
soundness of a bank’s operations. An examination involves ascer­
taining the character and amount of a bank’s assets and liabilities,
a detailed appraisal of assets, a review of the bank’s policies and
procedures, an evaluation of management, and a determination of
whether all pertinent statutes and regulations are being observed.
Variations in economic conditions, the changing nature of bank
operations, and individual characteristics of particular banks pro­
vide a continuing challenge to the bank examiner. New areas of
CHART E

BANKS EXAMINED REGULARLY BY FDIC, ABOUT
HALF OF ALL BANKS, HOLD ONE-FOURTH
OF ALL BANK ASSETS

NUMBER OF BANKS

ASSETS OF BANKS

14,328

$448 BILLION

EXAMINED BY AND REPORTING TO:

1 H

COMPTROLLER OF THE CURRENCY

I

STATE AUTHORITIES AND
FEDERAL RESERVE BANKS

l lf l




I STATE AUTHORITIES AND FDIC
STATE AUTHORITIES ONLY

SUPERVISORY ACTIVITIES

19

development, such as the accelerating trend of automation, the
proliferation and expansion of banking services, and the changing
role of banks in financial intermediation have added to the exam­
iners’ concerns. Through its examinations and other means, the
Corporation seeks to assist banks in adjusting to the new environ­
ment without, however, infringing upon the prerogatives and p ri­
mary responsibility of bank management.
The tripartite Federal supervision of banks is observed in bank
examinations, resulting in minimal duplication of effort notwith­
standing some overlap of responsibility. The Corporation regu­
larly examines insured State banks which are not members of the
Federal Reserve System, except those located in the District of
Table 6. BANK EXAMINATION ACTIVITIES OF THE FEDERAL
DEPOSIT INSURANCE CORPORATION IN 1965 AND 1966
N um ber
A c tiv ity

1966

1965

F ie ld e x a m in a tio n s a n d in v e s tig a t io n s — t o t a l ...................................................

13,663

12,981

E x a m in a tio n s o f m a in o f fic e s — t o t a l ...................................................................

6,980

6,796

Regular e xam inations of in sured banks not members of Federal Reserve S y s te m ..........
R e-exam inations; or o th e r than regular e xa m in a tio n s ..........................................................
Entrance exam inations of operating noninsured b a n k s .........................................................

6,815
144
21

6,618
146
32

E x a m in a tio n s o f d e p a r t m e n ts a n d b r a n c h e s .................................................

4,832

4,439

Exam inations of tru s t d ep artm en ts...............................................................................................
E xam inations of bra nch es................................................................................................................

1,114
3,718

1,056
3,383

In v e s tig a t io n s ........................................................................................................................

1,851

1,746

New bank in v e s tig a tio n s ..................................................................................................................

169

151

S ta te b a n k s m e m b e rs o f F e d e ra l R e se rv e S y s t e m ........................................
B an ks n o t m e m b e rs o f F e d e ra l R e se rv e S y s t e m ............................................

14
155

6
145

New branch in vestig a tion s...............................................................................................................
Mergers and co nso lid a tion s.............................................................................................................
Miscellaneous in v e s tig a tio n s ...........................................................................................................

462
160
1,060

435
144
1,016

W a s h in g to n o ffic e re v ie w o f re p o rts o f e x a m in a tio n o f in s u r e d
b a n k s — t o t a l ..................................................................................................................

9,418

9,077

National b an ks.....................................................................................................................................
State banks m embers of Federal Reserve S yste m .................................................................
State banks not members of Federal Reserve S y s te m ..........................................................

1,676
789
6,953

1,607
603
6,867

Columbia, which are under the jurisdiction of the Comptroller of
the Currency. Banks examined by the Corporation comprise about
one-half of all banks and account for about one-fourth of all bank
assets, as indicated in Chart E. In over one-half of the States, these
examinations may be made jointly or concurrently with the re­
spective State supervisory authorities. As a rule the Corporation
itself does not examine national banks or State banks which are
members of the Federal Reserve System, but it reviews the reports
of examination made by the other Federal agencies.
The Corporation’s examiners operate out of offices located in
different sections of the nation. In addition to their examination



20

FEDERAL DEPOSIT INSURANCE CORPORATION

work, they conduct investigations relating to applications for insur­
ance, branches, mergers and sim ilar matters. Recommendations
based on these investigations, after appropriate review, provide the
basis for decision by the Corporation’s Board of Directors.
During 1966 the Corporation examined 6,980 banks, including
144 re-examinations. The 1,851 investigations made during 1966
continued at the high level characteristic of recent years. Num­
bers of examinations, investigations, and reports reviewed during
1966 are shown in Table 6.
Cease-and-desist orders. Whenever examination of a bank re­
veals unsound practices or violations of law, the Corporation is
ordinarily able through cooperative efforts to obtain correction of
the offending practice or situation. When persistent efforts in this
direction have failed to effect a correction, the Corporation has on
occasion invoked its authority to initiate proceedings to terminate
the bank’s insurance. Termination of deposit insurance, however,
is a drastic action to be used sparingly, and the Corporation has
been reluctant to employ it in cases which continue to offer hope
of cooperative agreement.
An intermediate degree of authority, which could be directed
more precisely at the particular offense, was obtained in an Act
effective October 16, 1966. This Act empowers the Corporation,
when corrective action is not obtainable by the State supervisory
authority, to issue cease-and-desist orders in regard to specific
violations or practices or, in situations involving personal dishon­
esty, to suspend or remove personnel responsible for such actions.
Detailed provisions of the Act are given in the Legislation Section
of this report.
Citations contemplating termination of insurance. When unsound
banking practices or violations of law. persist, the Corporation has
responsibility to institute proceedings for termination of the bank’s
insurance. This action was taken twice during 1966. One of these
cases was closed when the bank suspended operation, while the
other was pending at year-end.
The year started with a backlog of four pending cases. Three of
these were closed during 1966 following necessary corrections;
in the other case action was deferred.
Actions to terminate insurance have been initiated 195 times
during the Corporation’s history. In only 12 cases have proceed­
ings continued to the point where insurance has been terminated.
The outcome of all termination proceedings begun under Section
8(a) of the Federal Deposit Insurance Act is shown in Table 7.
Regulation of bank securities. The registration and reporting pro­
visions of the Securities Exchange Act of 1934 were extended to
securities issued by banks under terms of Public Law 88-467, effec


21

SUPERVISORY ACTIVITIES
Table 7. ACTIONS TO TERMINATE INSURED STATUS OF BANKS
CHARGED WITH UNSAFE OR UNSOUND BANKING PRACTICES OR
VIOLATIONS OF LAW OR REGULATIONS, 1936-1966

Disposition or status

1936-19661

Started
d u rin g 1966

T o ta l b a n k s a g a in s t w h ic h a c tio n w a s t a k e n .........................................................

195

2

C a s e s c lo s e d ...........................................................................................................................

193

1

C orrections m ade...................
Banks absorbed or succeeded by other b a n k s ...

........................................

W ith fin a n c ia l a id o f the C o r p o r a tio n ..................................................................
W ith o u t fin a n c ia l a id o f the C o r p o r a tio n ............................................................
Banks suspended p rio r to setting date of term in atio n of insured status by C o rp oratio n .
Insured status term in ate d, or date fo r such term in atio n set by Corporation, for failure
to make corrections .
.......................................................

76
69

62
7
36

1

12

B anks s u s p e n d e d p rio r to o r on d a te o f te rm in a tio n o f in s u re d statu s
B anks c o n tin u e d in o p e ra tio n 2
................................................................... ..

9
3

C a s e s n o t c lo s e d D e c e m b e r 31, 1 9 6 6 ......................................................................

2

1

A ction deferred pending analysis of e x a m in a tio n ...................................................................

2

1

1 No action to term in ate the insured status of any bank was taken before 1936. In 5 cases where in itia l action was
replaced by action based upon a dditional charges, only the la tte r action is included.
2 One of these suspended 4 months a fte r its insured status was term inated.

tive August 20, 1964. The Federal Deposit Insurance Corporation
has administrative responsibility for the Act with respect to insured
State nonmember banks.
The legislation had its first major impact during 1965, when the
Corporation received registration statements from 76 banks, all
but one of which remained effectively registered throughout the
year. In 1966, the number of registered banks increased to 82 as
a result of 10 new registrations and the withdrawal of three banks
through mergers and one through conversion to a national charter.
Effective July 1, 1966, in accordance with statutory provisions, the
minimum stockholder requirement for registration declined from
750 to 500. However, since this measure is applied as of the last day
of the bank’s fiscal year and most banks operate on the basis of
a coincident fiscal-calendar year, the effect of the stricter require­
ment will not be felt until 1967.
In accordance with further requirements under this statute, the
Corporation also received annual reports, current reports, and
proxy statements from registered State nonmember banks, as well
as beneficial stock ownership reports from each of the banks’
directors, officers, and large stockholders. During the year nearly
1,900 changes in beneficial ownership were reported.
Changes in bank ownership and loans secured by bank stock.
During 1964 several insured banks failed as the result of a rapid
and drastic deterioration in asset quality following a change in
management control. In an effort to maintain closer supervision
over this problem, the Corporation sponsored a measure enacted
as Public Law 88-593, effective September 12, 1964. This measure



22

FEDERAL DEPOSIT INSURANCE CORPORATION

is designed to alert the Corporation to changes in control of man­
agement of insured banks so that the character of new manage­
ment may be immediately investigated and supervisory action
taken if appropriate.
Under this law, the president or other chief executive officer of
an insured bank is required to report promptly to the appropriate
Federal banking agency the facts about changes occurring in the
ownership of outstanding voting stock which will result in a change
in control of the bank. Where there has been a change in control,
each insured bank is also required to report any changes or re­
placements in the chief executive officer or directors occurring
during the next year. Furthermore, any loan secured by 25 percent
or more of the outstanding voting stock of an insured bank must
also be reported by the president or chief executive officer of the
lending bank to the Federal banking agency having supervisory
responsibility for the bank whose stock secures the loan. Copies of
all reports received by the other Federal banking agencies must
be furnished to the Corporation.
There were 424 changes in control and 223 loans reported under
these requirements for 1966 and received through January 31,
1967. Over two-thirds of the reported changes in control involved
banks supervised by the Corporation. As might be expected, most
of the changes in control occurred in relatively small banks.
Every reported change of control is investigated to the extent
warranted. If information is developed which provides a basis for
believing that the new ownership may be inimical to the best inter­
ests of depositors, the bank is promptly placed under intensive
supervision. The bulk of reported changes in control, however,
have not required special supervisory attention.
Other reports from banks. The Corporation obtains statistical and
other information from banks by means of periodic calls for reports
of condition and through special requests for information from
time to time. Every insured bank reports its financial condition
four times each year to one of the Federal supervisory agencies;
nonmember insured banks report directly to the Corporation. In­
come and dividend statements are obtained from banks once each
year.
In 1947 the Corporation was given responsibility for collection
and publication of all-bank statistics under an agreement arranged
by the Bureau of the Budget with the Federal banking agencies. In
connection with this, the Corporation publishes asset and liability
data covering noninsured banks; however, it does not collect or
report income data concerning these banks.
During 1966 the Corporation conducted a special survey of inter­
est rates paid on time and savings deposits of insured nonmember



SUPERVISORY ACTIVITIES

23

banks. The purpose was to obtain information on current conditions
in the market for savings, complementing an identical survey of
member banks made by the Federal Reserve System. The survey
provided information not previously available on interest rates and
amounts for major types of time and savings deposits held by indi­
viduals and businesses as of May 11, 1966, March 2, 1966 and
December 3, 1965.
A survey of deposits in insured banks was made by the Corpora­
tion as of June 30, 1966. This survey differed from previous such
surveys, which have been conducted periodically since 1934, in
two significant respects. First, data were reported separately for
savings deposits of individuals and businesses; second, data were
reported for each banking office, in contrast to previous surveys
wherein each bank (with its branches) was a reporting unit. The
new information is expected to be particularly helpful in the anal­
ysis of banking markets.
Conferences with supervisors of state banks. In March 1966, Cor­
poration officials met with State banking authorities of the States
comprising FDIC Districts 9, 10, and 11. This was the fifth and con­
cluding conference of a series which was initiated in mid-1964 to
provide State and Corporation officials an informal opportunity to
review industry developments and discuss other matters of mutual
interest. The discussion focused on State and Federal banking laws
and regulations and legislative proposals at the State and Federal
levels which would affect bank supervision.
The second series of conferences was initiated in September
1966. In attendance at this conference were State banking authori­
ties and staff aides from the 13 States which comprise FDIC Dis­
tricts 3, 7, and 12. Among the topics discussed were money market
conditions and questions of common concern in the area of exami­
nations and bank investigations. It is presently contemplated that
there w ill be two such meetings each year, which w ill bring the
second series to a close during 1968.
FEDERAL LEGISLATION
Amendment of 1960 Bank Merger Act. The Bank Merger A ct of
1960 was amended by an Act of Congress approved February 21,
1966 (Public Law 89-356). The main purpose was to resolve conflicts
which had arisen concerning the interpretation of the Merger Act.
To this end an attempt was made in the new Act to have the bank
supervisory authorities, the Department of Justice, and the Courts
take into account the same set of standards in their actions with
respect to mergers. It was required that consideration be given to
the effect that a proposed merger might have in creating a mo­



24

FEDERAL DEPOSIT INSURANCE CORPORATION

nopoly, substantially lessening competition, or restraining trade,
but provided that a merger might be approved if the anticom peti­
tive effects were clearly outweighed in the public interest by the
probable effect with respect to the convenience and needs of the
community to be served. The consummation of a merger, in usual
circumstances, could not take place until 30 days after approval by
the appropriate supervisory authority in order to give the Depart­
ment of Justice an opportunity to contest the merger in the courts,
if it so desired. If a suit were not filed within that period, the merger
could not thereafter be attacked judicially on the ground that it was
a violation of an antitrust law other than section 2 of the Sherman
Antitrust Act. The new Act also contained special provisions con­
cerning pending and future judicial attacks on mergers previously
approved.
Amendment of 1956 Bank Holding Company Act. The Bank Hold­
ing Company Act of 1956 was amended in numerous respects by
an Act approved July 1, 1966 (Public Law 89-485). Among other
things, the coverage of the Bank Holding Company Act was ex­
tended to long-term, nonbusiness trusts; and exemptions for non­
profit religious, charitable, and educational organizations, com­
panies registered under the Investment Company Act of 1940 and
their affiliates, and certain agricultural companies, were repealed.
The standards and procedures prescribed for bank merger cases
by the Act of February 21, 1966, discussed above, were made appli­
cable to the approval of proposed acquisitions, mergers, and con­
solidations under the Bank Holding Company Act. Provisions relat­
ing to loans and investments by subsidiary banks involving other
companies within the same holding company group were repealed.
At the same time, section 23A of the Federal Reserve Act, relating
to loans and other dealings between member banks and their
affiliates, was amended in numerous respects and was given
broader application. Of particular significance, section 23A was
extended to apply to insured nonmember banks as well as member
banks.
Regulation of interest rates. An Act containing temporary inter­
est rate control provisions (Public Law 89-597) was approved by
the President on September 21, 1966, and unless extended, will
expire at the end of one year. The Act directed the Secretary of the
Treasury, the Board of Governors of the Federal Reserve System,
the Federal Deposit Insurance Corporation, and the Federal Home
Loan Bank Board to take action to reduce interest rates to the
maximum extent feasible. The provisions of the Federal Reserve
Act which directed the Board of Governors to prescribe maximum
rates of interest payable on time and savings deposits in member
banks were amended to provide that the Board, after consulting



FEDERAL LEGISLATION

25

with the Federal Deposit Insurance Corporation and the Federal
Home Loan Bank Board, may lim it by regulation the rates of inter­
est which may be paid on such deposits. Thus, consultation was
required and the regulation of interest rates payable by member
banks was put on a discretionary basis instead of the mandatory
basis previously prescribed. The Act also was amended to provide
additional bases for differentiating between deposits, and as
amended empowered the Board of Governors to prescribe differ­
ent rate lim itations on the basis of different classes of deposits,
deposits of different amounts or with different maturities or subject
to different conditions regarding withdrawal or repayment, ac­
cording to the nature or location of member banks or their depos­
itors, or according to such other reasonable bases as the Board
may deem desirable in the public interest.
The provisions of the Federal Deposit Insurance Act authorizing
the regulation of rates of interest payable by insured nonmember
banks were amended in like manner. Interest rate lim itations were
placed on a discretionary basis, consultation was required before
changes in rates, different rate lim itations were authorized for dif­
ferent types and classes of deposits, and insured nonmember mu­
tual savings banks were explicitly mentioned. In addition, the Act
gave sim ilar authority to the Federal Home Loan Bank Board with
respect to the regulation of rates payable by institutions which are
insured institutions as defined in section 401(a) of the National
Housing Act and those member institutions subject to regulation by
the Board. This subjected savings and loan associations to such
dividend rate lim itations for the first time. Other provisions of the
Act amended the Federal Reserve Act to increase the maximum
reserve requirements for time and savings deposits and to authorize
Federal Reserve open-market operations in obligations of agencies
of the United States.
Cease-and-desist legislation. The Financial Institutions Supervi­
sory Act of 1966 (Public Law 89-695), approved on October 16,
1966, was designed prim arily to provide the means for more effec­
tive supervision of insured banks and savings and loan associa­
tions. The Federal Deposit Insurance Corporation, the Com ptroller
of the Currency, the Board of Governors of the Federal Reserve
System, the Federal Home Loan Bank Board, and the Federal Sav­
ings and Loan Insurance Corporation were authorized to issue
temporary and permanent cease-and-desist orders to insured in­
stitutions with respect to violations of law, rule, regulation, charter,
or written condition or agreement, or with respect to unsafe or
unsound practices. In addition, another new remedy was provided
by empowering the supervisory authorities to take action to sus­
pend or remove officers or directors of insured institutions for



FEDERAL DEPOSIT INSURANCE CORPORATION

26

violation of law, ruling, regulation or a final cease-and-desist order,
or for engaging or participating in any unsafe or unsound practice,
when personal dishonesty is involved. Provision also was made for
suspension or removal of persons convicted of any crim inal offense
involving dishonesty or a breach of trust or charged with a felony
of that nature. In addition to these new grants of authority, the Act
amended various provisions of existing law, including those relat­
ing to the termination of deposit and share account insurance. All
of the above-mentioned provisions of the Act will expire on June
30, 1972, unless further action is taken to continue them in effect.
Increase in insurance coverage. In the course of final passage,
there were added to the Financial Institutions Supervisory Act of
1966 provisions of a permanent nature, which increased the maxi­
mum insurance coverage provided by the Federal Deposit Insur­
ance Corporation and the Federal Savings and Loan Insurance
Corporation from $10,000 to $15,000 for each depositor or share
account holder. The two Corporations also were authorized to de­
fine, with such classifications and exceptions as they might pre­
scribe, the terms used with respect to insurance coverage.
RULES AND REGULATIONS OF THE CORPORATION
AND STATEMENTS OF GENERAL POLICY
Employee standards of conduct. On May 8, 1965, the President
issued Executive Order 11222 directing each agency to prescribe
standards of ethical conduct for Government officers and em­
ployees. Pursuant to the provisions of this executive order, the
Corporation adopted a new Part 336 of its rules and regulations,
Employee Responsibilities and Conduct, in April, 1966.
Payment of deposits and interest. In 1966, the Corporation, in
four separate actions, amended Part 329 of its rules and regula­
tions, relating to the payment of deposits and interest thereon by
insured nonmember banks.
Effective July 20, 1966, the Board of Directors under existing
legislative authority defined "m ultiple maturity time deposits” , and
provided for a maximum rate of 5 percent on such deposits pay­
able in 90 days or more, and 4 percent on such deposits payable
in less than 90 days. In taking this action, the Corporation sought
to lim it excessive interest rate competition among financial insti­
tutions, and to support the Federal Reserve in its primary monetary
policy responsibilities.
To implement the interest rate legislation approved by the Presi­
dent on September 21, 1966 (Public Law 89-597), Part 329 was
amended effective September 26, 1966, to reduce from 51 per­
/2
cent per annum to 5 percent per annum the maximum rate of



RULES AND REGULATIONS OF THE CORPORATION

27

interest that may be paid by insured nonmember banks on single
maturity time deposits of less than $100,000 received on or after
September 26, 1966. At the same time, banks were authorized to
compound interest up to the applicable maximum rate on any basis
that the bank desired to adopt. This action under the C orporation’s
new authority to differentiate deposits by size as well as other
reasonable criteria was intended to check further escalation in
interest rates on time money.
As part of the same amendment, provisions were added to Part
329 to regulate, for the first time, the payment of interest and divi­
dends by insured nonmember mutual savings banks, and a maxi­
mum rate of 5 percent was prescribed for any time on or after
October 1, 1966. This coincided with the issuance of regulations
by the Federal Home Loan Bank Board, under the new interest
legislation, to prescribe maximum rates for insured savings and
loan associations and similar organizations.
Effective October 1, 1966, Part 329 was amended to permit in­
sured nonmember mutual savings banks in Alaska to pay higher
rates of interest or dividends than the rate prescribed generally
for mutual savings banks.
On December 8, 1966, the Board of Directors adopted amend­
ments to Parts 327 and 329, effective January 1, 1967, designed
to sharpen the technical distinctions between time deposits and
savings deposits. Specifically, the amendments to the rules and
regulations amend the definitions of the terms “ time deposit, open
account” and “ savings deposit” to make it clear that deposits
payable on a specified date or at the expiration of a specified
period of time after the date of deposit (sometime referred to as
“ fixed m aturity” deposits) do not constitute savings deposits. The
amendments to Part 327 of the rules and regulations relating to
assessments are conforming amendments only and are not in­
tended to affect the manner of computing assessments payable
by insured banks to the Corporation.
Advertising for funds. On December 14, 1966, the Board of Direc­
tors approved a statement of policy with respect to advertising
for funds by insured State nonmember banks. Similar statements
were issued by the Board of Governors of the Federal Reserve
System, the Com ptroller of the Currency, and the Federal Home
Loan Bank Board relating to institutions subject to their super­
vision.
The foregoing statutes, the complete text of Part 336, each of
the amendments to Parts 327 and 329, and the statement of policy
with respect to advertising, along with a summary of significant
State banking legislation, are presented in Part Two of this report.



28

FEDERAL DEPOSIT INSURANCE CORPORATION

ADMINISTRATION OF THE CORPORATION
Structure and employees. The Corporation is managed by a Board
of Directors consisting of three members appointed by the Presi­
dent by and with the advice and consent of the Senate. Two of the
Directors are appointed directly to the Board for six-year terms;
one of these appointive members serves as Chairman. The Comp­
troller of the Currency, also a Presidential appointee, is ex officio
the third member of the Board.
Mr. K. A. Randall, appointed to the Board on March 10, 1964,
served as Chairman throughout 1966. Mr. William W. Sherrill was
appointed as Director to a full term beginning March 4, 1966, filling
a vacancy which had existed since April 29, 1965. Mr. James J.
Saxon continued as Comptroller of the Currency until November
15, 1966. Mr. William B. Camp, First Deputy Com ptroller and desig­
nated by the President as Mr. Saxon’s successor, served on the
Board as Acting Com ptroller until his appointment as Com ptroller
was confirmed by the Senate on February 1, 1967.
The organization of the Corporation and officials, supervising
examiners and district offices, are shown on pages iv, v, and vi.
During 1966 the research function was strengthened to provide
additional support for bank supervisory activities and to expand
services to banks. Heavier work loads required additional person­
nel in both the Examination and Legal Divisions. Employee educa­
tion and training programs were stepped up.
The net increase of personnel totaled 83 in 1966, consisting of
63 in the Washington office and 20 in the District offices. All divi­
sions of the Corporation contributed to the increase through the
addition of one or more personnel. The number of employees at the
end of 1965 and 1966, distributed by Division and location, is shown
in Table 8.

Table 8. NUMBER OF OFFICERS AND EMPLOYEES OF THE FEDERAL
DEPOSIT INSURANCE CORPORATION, DECEMBER 31, 1965 AND 1966
W ashington
office

Total

D istrict and other
field offices

Unit
1966

T o ta l
D ire c to rs...................................
Executive O ffice s......................................
Legal D iv is io n ..................................................
D ivision of E x a m in a tio n .................................................
Division of L iq u id a tio n ...................................................
Division of Research and Data Processing...............
Office of C o n tro lle r..........................................................

1965

1966

1965

1966

1965

1.5291

1,446*

426

363

1,103

1,083

3
44
41
1,111
112
89
129

2
43
36
1,078
101
72
114

3
44
41
66
64
89
119

2
43
36
62
45
72
103

0
0
0
1,045
48
0
10

0
0
0
1,016
56
0
11

1 Includes 68 non-perm anent em ployees in 1966, and 69 in 1965. These are employees serving e ith e r on short-te rm
appointm ents or on a non-pay or when a ctu a lly em ployed basis.




ADMINISTRATION OF THE CORPORATION

29

Examination activity continued to require the largest number of
personnel, about three-fourths of all employees. During the year,
167 field examiners entered Corporation employment, while 145
left; the turnover rate for this group was 16.7 per 100.
For all employees, exclusive of temporary field liquidation per­
sonnel and 80 students employed tem porarily under the summer
employment program, the turnover rate was 20.8 per 100.
Employee benefits and programs. There were no significant
changes during 1966 in benefits and programs available to em­
ployees, or in employee participation in existing programs.

FINANCES OF THE CORPORATION
Assets and liabilities. Assets and liabilities of the Corporation on
December 31, 1966 are shown in Table 9.
Assets totaled $3,443 million at the end of 1966. These were
predominantly in the form of United States Government obligations
valued at $3,414 million, including accrued interest. Assets ac­
quired in insurance transactions, after allowances for losses, were
valued at $17 million. The Corporation carried its site and office
building at nearly $8 million and held cash of $4 million.
Liabilities totaled $191 million on December 31, 1966. Of this
amount, net assessment income credits due insured banks equaled
$188 million.
The excess of the C orporation’s assets over its liabilities consti­
tutes the deposit insurance fund. This fund, which represents
accumulated income since the inception of deposit insurance,
amounted to $3,252 million on December 31, 1966. This basic
resource for the protection of depositors is reinforced by the Cor­
poration’s authority to borrow up to $3 billion from the United
States Treasury whenever in the judgment of the C orporation’s
Board of Directors such funds are needed for insurance programs.
This borrowing power has not yet been used.
Income and expenses in 1966. Net income added to the deposit
insurance fund during 1966 aggregated $216 million. Assessments
earned amounted to $284 million but, after allowance of assessment
credits to insured banks of $172 million, contributed only $112
million to retained income. Interest on the United States Govern­
ment securities in which the insurance fund is invested, as required
by statute, totaled $129 million. Operating expenses approached
$20 million, and insurance losses and expenses absorbed or pro­
vided for exceeded $5 million. The Corporation's income and ex­
penses for 1966 are shown in Table 10.
Assessments on banks are levied at the statutory annual rate of
one-twelfth of 1 percent of assessable deposits. The 1950 Act,



30

FEDERAL DEPOSIT INSURANCE CORPORATION
Table 9. STATEMENT OF FINANCIAL CONDITION, FEDERAL DEPOSIT
INSURANCE CORPORATION, DECEMBER 31, 1966

ASSETS

C ash........................................................................................................

$

4 ,4 4 0 ,9 3 5

U. S. Government obligations:
S ecurities at am ortized cost (face value $3,393,312,000; cost $3,371,195,373)
Accrued in terest re ce iva b le ...............................................................................................

$3,3 78 ,94 2,5 7 1
3 5,0 45 ,56 6

3 ,4 1 3 ,9 8 8 ,1 3 7

Assets acquired in receivership and deposit assumption
transactions: 1
Special assistance to in sured b a n k s ............................................................................
Subrogated claim s of depositors against closed insured b an ks..........................
Net insured balances of depositors in closed insured banks, to be subrogated
when p aid — see related lia b ility ................................................................................
Loans to insured b a n k s ....................................................................................................
E quity in assets acquired under purchase agreem ents.........................................
Assets purchased o u trig h t...............................................................................................

$

10,0 00 ,00 0
20,3 71 ,91 4
492,655
2 ,4 4 4 ,0 2 0
3 ,0 9 2,6 17
14,978

$
Less reserves fo r lo sses...........

3 6,416,184
19,748,359

16,667,825

Miscellaneous assets.........................................................................

282,300

Land and office building, less depreciation on building. . . .

7,905,311

Furniture, fixtures, and equipm ent (cost $ 1 ,3 8 3 ,7 3 3 )...........

1

$3,443,284,509

Total assets........................................................................
L IA B IL IT IE S AND DEPOSIT INSURANCE FU N D 2

Accounts payable and accrued lia b ilitie s ..................................

S

Earnest money, escrow funds, and collections held for
others ............................................................................................

1,2 1 1,7 90

169,208

Accrued annual leave of em ployees...............

1,320,051

Due insured banks:
Net assessment income cre d its available July 1,1967 (See Table 1 1 ).................
O ther assessment credits available im m e d ia te ly .....................................................

Net insured balances of depositors in closed insured banks
—see related asset.....................................................................
Total lia b ilities................................................................
Deposit insurance fund, net income accumulated since
inception 3(See Table 1 0 ).........................................................
Total liabilities and deposit insurance fu n d ............

$

172,606,507
15,521,841

188,128,348

492,655

$ 191,322,052
3,251,962,457
$3,443,284,509

1 Reported hereunder is the book value of assets in process of liq u id a tio n . An analysis of all assets acquired in
receivership and deposit assum ption transactions, inclu din g those assets which have been liq u id a te d , is fu rn is h e d in
Table 4.
2 Capital stock was retired by paym ents to the United States Treasury in 1947 and 1948.
3 The deposit insurance fund represents the accum ulated net income of the Corporation and is a va ila b le fo r in surin g
deposits and paymerrt of expenses. The b orrow ing a u th o rity of $3 b illio n from the U nited States Treasury has never
been used.
NOTE: This statem ent does not include accou nta bility for the assets and lia b ilitie s of the closed in sured banks for
which the Corporation acts as receiver or liq u id a tin g agent.

however, introduced a provision whereby a portion of the assess­
ments is returned to the banks, in the form of individual credits
against future assessments, after deducting the Corporation’s
losses and expenses. This returned portion, initially set at 60 per­
cent, was raised to 66% percent in 1961. Since that time— and in
1966 as w ell— the effective assessment rate has been about onethirty-first of 1 percent of deposits. The method of determining and



FINANCES OF THE CORPORATION

31

distributing net assessment income in 1966 is shown in Table 11.
In addition to its assessment and investment income, the turn­
over of its investments in U. S. Government securities and in assets
acquired in insurance operations provides funds which the Corpo­
ration has at its disposal. Most of the activity is in the sale, redemp­
tion or purchase of U. S. Government securities. The sources and
application of all funds administered by the Corporation during
1966 are shown in Table 12.
Income and the deposit insurance fund, 1934-1966. The compo­
nents of income and its distribution since the beginning of the
Table 10. STATEMENT OF INCOME AND THE DEPOSIT INSURANCE
FUND, FEDERAL DEPOSIT INSURANCE CORPORATION,
YEAR ENDED DECEMBER 31, 1966
In c o m e :
Deposit insurance assessments:
Assessments earned in 1966 .....................................................
Less net assessment income credits to insured banks.....................................

$284,286,637
172,603,634

$ 111,683,003

Net income from U. S. Government securities....................................................
Other income..............................................................................................................

17,614
$ 111,700,617
129,302,688
1,588

T o ta l in c o m e ........................................................................................

$ 241,004,893

Adjustments of assessments earned in prior years...........................................

E x p e n s e s a n d lo s s e s :
Administrative and operating expenses:
Salaries and wages................................................................
Civil Service retirement fund and F.I.C.A. payments.........................
Travel expenses.........................................................................................................
Office rentals, communications and other expenses...........................
Provisions for insurance losses:
Applicable to banks assisted in 1966............................................

.....................
Non-recoverable insurance expenses incurred to protect depositors— net__
T o ta l e x p e n s e s a n d lo s s e s ....................................
Adjustm ents applicable to banks assisted in prior ye a rs

N e t a d d it io n to th e d e p o s it in s u r a n c e f u n d — 1966 ...............
D e p o ly 1966............... y
s it in s u r a n c e fu n d , J a n u a r
D e p o s it in s u r a n c e fu n d , D e c e m b e r 31, 1966, n e t in c o m e
a c c u m u la te d s in c e in c e p tio n (s e e T a b le 9 a n d n o te 3 o f
T a b le 9).......................................

$ 12,961,963
822,928
3,360,101
2,646,911

$

19,791,903

$ 4,785,000
362,859

5,147,859
428,424
$

25,368,186

$ 215,636,707
3,036,325,750

$3,251,962,457

C orporation’s operations in 1933 are shown in Table 13. The rela­
tively low losses and expenses have enabled the Corporation to
retain 89 percent of the income it has received, enabling it to build
up the deposit insurance fund.
Growth in the deposit insurance fund has just about kept pace
with the growth in deposits, giving that relationship a notable sta­
bility. On December 31, 1966, the fund amounted to 0.81 percent
of total deposits and 1.39 percent of insured deposits, as shown



32

FEDERAL DEPOSIT INSURANCE CORPORATION

Table 11. DETERMINATION AND DISTRIBUTION OF NET ASSESSMENT
INCOME, FEDERAL DEPOSIT INSURANCE CORPORATION,
YEAR ENDED DECEMBER 31, 1966
D e t e r m in a t io n o f n e t a s s e s s m e n t in c o m e :
Total assessments which became due during the calendar year........................
Less:
Administrative and operating expenses...............................................................
Net additions to reserve to provide for insurance losses:
Provisions applicable to banks assisted in 1966........................................
Adjustments to provisions for banks assisted in prior years..................

$284,286,637
$ 19,791,903
$ 4,785,000
375,859

5,160,859

Insurance expenses..................................................................................................

428,424

Total deductions.......................................................................................

$ 25,381,186

N e t a s s e s s m e n t in c o m e fo r 1 9 6 6 ..........................................................

$258,905,451

D is tr ib u tio n o f n e t a s s e s s m e n t in c o m e , D e c e m b e r 3 1 , 1 9 6 6 : .
Net assessment income for 1966:
33V3% transferred to the deposit insurance fund.............................................
66% % credited to insured banks..........................................................................

$ 86,301,817
172,603,634

T o t a l ...........................................................................................................

$258,905,451

A llo c a tio n o f n e t a s s e s s m e n t in c o m e c r e d it a m o n g in s u r e d
ban ks, D ec em b er 3 1 ,1 9 6 6 :

Percentage of total
assessment
becoming due in
1966

Credit for 1966..............................................................................................................
Adjustments of credits for prior years....................................................................

$172,603,634
2,872

60.715%
.001

T o t a l .....................................................................................................

$172,606,506

60.716%

in Table 14. The existence of the fund as a concrete, available
resource, backed up by adequate supervision, has helped to
moderate the demands upon it and to maintain public confidence
in the safety of deposits.
Audit. A continuous internal audit is made of the Corporation’s
operations. In addition, an independent audit of the Corporation’s
books has been made each year since its establishment, first by
Table 12. SOURCES AND APPLICATION OF FUNDS, FEDERAL DEPOSIT
INSURANCE CORPORATION, YEAR ENDED DECEMBER 31, 1966
F u n d s p r o v id e d b y :
Net deposit insurance assessments.....................................................................................
Income from U. S. Government securities, less amortized net discounts...................
Maturities and sales of U. S. Government securities.......................................................
Collections on assets acquired in receivership and deposit assumption transactions

$127,778,782
127,453,130
380,458,000
6,369,818

T o ta l fu n d s p r o v id e d .................................................................................

$642,059,730

F u n d s a p p lie d to :
Administrative, operating and insurance expenses, less miscellaneous credits........
Acquisition of assets in receivership and deposit assumption transactions...............
Purchase of U. S. Government securities...........................................................................
Net changes in other assets and liabilities........................................................................

$ 20,083,535
18,891,397
599,818,962
3,265,836

T o ta l fu n d s a p p li e d ...................................................................................

$642,059,730




FINANCES OF THE CORPORATION

33

Table 13. INCOME AND EXPENSES, FEDERAL DEPOSIT INSURANCE
CORPORATION, BY YEAR, FROM BEGINNING OF OPERATIONS,
SEPTEMBER 11, 1933, TO DECEMBER 31, 1966
ADJUSTED TO DECEMBER 31, 1966

(In millions)
Expenses and losses

Income

Total

Deposit
insurance
assess­
ments1

Invest­
ments
and
other
sources2

1933-66.

$3,634.1

$2,291.8

$1,342.3

$382.1

$47.8

19 6 6 ....
19 6 5 ....
1 9 6 4 ....

241.0
214.6
197.1

111.7
102.2
93.0

129.3
112.4
104.1

25.0
24.4
18.9

5.2
6.7
3.4

1 9 6 3 ....
1 9 6 2 ....
1 9 6 1 ....
1 9 6 0 ....
1 9 5 9 ....

181.9
161.1
147.3
144.6
136.5

84.2
76.5
73.4
79.6
78.6

97.7
84.6
73.9
65.0
57.9

16.4
13.8
14.8
12.5
12.1

2.0
.1
1.6
.1
.2

1 9 5 8 ....
1 9 5 7 ....
1 9 5 6 ....
19 5 5 ....
19 5 4 ....

126.8
117.3
111.9
105.7
99.7

73.8
69.1
68.2

11.6

62.4

53.0
48.2
43.7
39.6
37.3

1 9 5 3 ....
1 9 5 2 ....
1 9 5 1 ....
1 9 5 0 ....
1 9 4 9 ....

94.2
88.6
83.5
84.8
151.1

60.2
57.3
54.3
54.2
122.7

34.0
31.3
29.2
30.6
28.4

7.3
7.8
7.8
6.4

1.4
.3

1 9 4 8 ....
1 9 4 7 ....
1 9 4 6 ....
1 9 4 5 ....
1 9 4 4 ....

145.6
157.5
130.7
121.0
99.3

119.3
114.4
107.0
93.7
80.9

26.3
43.1
23.7
27.3
18.4

7.0
9.9
10.0
9.4
9.3

.7
.1
.1

1 9 4 3 ....
1 9 4 2 ....
1 9 4 1 ....
1 9 4 0 ....
1 9 3 9 ....

8 6.6

69.1
62.0
55.9
51.2

70.0
56.5
51.4
46.2
40.7

16.6

9.8

.2

12.6

10.1

.5
.6
3.5
7.2

1 9 3 8 ....
1 9 3 7 ....
1 9 3 6 ....
1 9 3 5 ....
1933-34.

47.7
48.2
43.8

38.3
38.8
35.6
11.5

9.4
9.4
8.2
9.3
7.0

Year

20.8

7.0

66.1

(5)

10.6
9.7
10.5

Total

Interest
on capital
stock3

$80.6

$253.7

$3,252.0

19.8
17.7
15.5

216.0
190.2
178.2

14.4
13.7
13.2
12.4
11.9

165.5
147.3
132.5
132.1
124.4

11.6
9.6
9.1
8.7
7.7

Deposit
insurance

losses and
expenses

115.2
107.6
102.3
96.7
91.9

7.2
7.0
6.6
6.4
6.1

86.9
80.8
76.9
77.0
144.7

.6
4.8
5.8
5.8
5.8

5.7
5.0
4.1
3.5
3.4

138.6
147.6
120.7
111.6
90.0

5.8
5.8
5.8
5.8
5.8

3.8
3.8
3.7
3.6
3.4

76.8
59.0
51.9
43.0
34.8

5.8
5.8
5.8
5.8
5.6

3.0
2.7
2.5
2.7
4.2 6

36.4
36.0
32.9
9.5
-3 .0

9.7
9.6
9.0
7.8

6.6

10.1
12.9
16.4
11.3

.1

.1

12.2

2.5
3.7

10.0

2 .6
2.8
.2

10.9
11.3

Net
income
added to
deposit
insurance
fund4

Adminis­
trative
and
operating
expenses

1 For the period from 1950 to 1966, inclusive, figures are net after deducting the portion of net assessment income
credited to insured banks pursuant to provisions of the Federal Deposit Insurance Act of 1950, as amended. Assessment
credits to insured banks for these years amounted to $1,787 million.
2 Includes $9.3 million of interest and allowable return received on funds advanced by the Corporation in 162 receiver­
ship and deposit assumption cases.
3 Paid in 1950 and 1951, but allocated among years to which it applies. Initial capital of $289 million was retired by
payments to the United States Treasury in 1947 and 1948.
4 The amounts shown herein give effect to adjustments to the deposit insurance fund in the years to which they are
applicable, whereas the amounts of the Fund shown in Table 14 represent the Fund as reported on the dates specified.
Hence the deposit insurance fund reported in Table 14 cannot be computed by annual addition of income reported herein,
except for the Fund as of December 31, 1966.
5 Assessments collected from members of the temporary insurance funds which became insured under the permanent
plan were credited to their accounts at the termination of the temporary funds and were applied toward payment of subse­
quent assessments becoming due under the permanent insurance fund, resulting in no income to the Corporation from
assessments during the existence of the temporary insurance funds.
6 Net after deducting the portion of expenses and losses charged to banks withdrawing from the temporary insurance
funds on June 30,1934.




34

FEDERAL DEPOSIT INSURANCE CORPORATION

Table 14. INSURED DEPOSITS AND THE DEPOSIT INSURANCE FUND,
1934-1966
Deposits in
insured banks
(in millions)

Year
(Dec. 31)
Total
1966..........
1965..........
1964..........

Insured1

$401,096
377,400
348,981

$234,150
209,690
191,787

Percent
of
deposits
insured

Deposit
insurance
fund
(in
millions)

Total
deposits

Insured
deposits

58.4%
55.6
55.0

$3,252.0
3,036.3
2,844.7

.81%
.80
.82

1.39%
1.45
1.48

Ratio of deposit
insurance fund to—

1963..........
1962..........
1961..........
1960..........
1959..........

313,3042
297,5483
281,304
260,495
247,589

177,381
170,2104
160,3094
149,684
142,131

56.6
57 .24
57.04
57.5
57.4

2,667.9
2,502.0
2,353.8
2,222.2
2,089.8

.85
.84
.84
.85
.84

1.50
1.474
1.474
1.48
1.47

1958
1957
1956
1955
1954

242,445
225,507
219,393
212,226
203,195

137,698
127,055
121,008
116,380
110,973

56.8
56.3
55.2
54.8
54.6

1,965.4
1,850.5
1,742.1
1,639.6
1,542.7

.81
.82
.79
.77
.76

1.43
1.46
1.44
1.41
1.39

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

1,450.7
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

1948
1947
1946
1945
1944

153,454
154,096
148,458
158,174
134,662

75,320
76,254
73,759
67,021
56,398

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

1943
1942
1941
1940
1939

111,650
89,869
71,209
65,288
57,485

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

50,791
48,228
50,281
45,125
40,060

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

1938
1937
1936
1935
1 9 3 4 ......

1 Figures estimated by 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.
2 December 20,1963.
3 December 28,1962.
4 Revised.

private firms and later by the General Accounting Office. The
Federal Deposit Insurance Act of 1950 provides that the financial
transactions of the Corporation shall be audited by the General
Accounting Office.




35

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Table 15. DESCRIPTION OF EACH MERGER, CONSOLIDATION,
ACQUISITION OF ASSETS OR ASSUMPTION OF LIABILITIES
APPROVED BY THE CORPORATION DURING 1966

re p o rt

by

To be
operated

24

26

3,920

A tto rn e y

1n
operation

78,722

State Bank & Trust Company,
Greenwood, South Carolina
to merge with
Newberry County Bank,
Newberry
S u m m a ry

B anking offices

Resources
(in
tho usan ds
of dollars)

Case No. 1

2

G e n e r a l,

N ovem ber

26,

1965

A pplicant bank, with $70 m illion in deposits and 23 branch offices, is the fourth
largest bank in South Carolina. The proposed acquisition would be the eighth for
applicant since 1955. By seven previous mergers, applicant absorbed 10 offices
and $25 m illion in deposits, about 35 percent of its current total deposits. The
proposed acquisition, although it will add only 0.2 percent of the total deposits
of all South Carolina banks to applicant’s resources, continues the trend toward
higher concentration among South Carolina banks. In this State, where statewide
branching is permitted, the three largest banks currently account for 48.8 percent
of all bank deposits, whereas in 1951, the three largest banks controlled only 39.2
percent. Furthermore, the number of banks in South Carolina has steadily de­
clined from 149 in 1951 to 132 in 1965. Because of the relatively small size of the
bank to be acquired, however, the proposed merger will not by itself have a sig­
nificantly adverse effect on competition.
B a s is

fo r

C o r p o r a t io n

a p p r o v a l,

J a n u a ry

6,

1966

This proposal would merge a relatively small bank headquartered in Newberry,
South Carolina, with a much larger bank (the fourth largest in the State), head­
quartered in Greenwood, 37 miles west-southwest of Newberry. The Joanna
branch of Newberry Bank is 15 miles northwest of Newberry and the nearest
offices of State Bank to Newberry Bank are at W hitmire, 17 miles northeast of
Joanna and 16 miles north of Newberry, and at Saluda, 23 miles south-southwest
of Newberry. State Bank operates 24 offices in 16 cities or towns situated gen­
erally west and southwest of Columbia, but Newberry and Joanna are not con­
sidered a part of its normal trade area. Neither bank derives any appreciable
amount of business from the service area of the other; consequently, there is no
significant com petition between them which will be eliminated.
Principal banking com petition for State Bank is provided by offices of the
State’s three largest banks which, among 29 banks with offices in the relevant
service area(s), collectively hold approxim ately three-fourths of the aggregate
deposits and loans. State Bank is only about one-half the size of the third largest
bank and about one-fourth the size of the largest, holding 8.8 percent of the
aggregate deposits and 9.1 percent of the loans. These proportions w ill be in­
creased by 0.4 percent and 0.3 percent, respectively, as a result of the merger,
and State Bank’s rank as fourth largest bank in the service area(s), as well as in
the State, will not be altered. To a small degree, the enlarged lending lim it that
would result for State Bank would enable it to compete more effectively with its
larger com petitors; otherwise, the merger would have no significant effect on
banking com petition in the areas presently served t>y State Bank.




36

FEDERAL DEPOSIT INSURANCE CORPORATION

In Newberry, Newberry Bank faces direct com petition from the Newberry
branch of The South Carolina National Bank of Charleston, which is by far the
State’s largest bank. The substitution of branches of State Bank in Newberry and
Joanna in place of the two offices of the much sm aller Newberry Bank should
prove beneficial to the public in that area because of State Bank’s greater re­
sources and more aggressive management policies, and com petition in that area,
especially Newberry, should be m aterially enhanced. The small bank which is
strictly local in its outlook and service to the public would be replaced by
branches of a bank of substantial size which is in a position to expand the range
of banking services to the public.
It is concluded that the merger would be in the public interest.

Resources
(in
tho usan ds
of dollars)

S u m m a ry

re p o rt

by

A tto rn e y

To be
op erated

4

5

10,770

Pioneer Bank of Arizona,
Phoenix, Arizona
to merge with
Bank of Scottsdale,
Scottsdale

In
operation

29,235

Case No. 2

1

G e n e r a l,

B anking o ffic e s

J a n u a ry

12,

1966

Pioneer Bank of Arizona has assets of $31,613,000 and deposits of $27,921,000.
Its main office and two branches are located in Phoenix, and it has an office in Pres­
cott, 60 miles north. It is the fifth largest of the eight banks in its Phoenix service
area (consisting of Phoenix, Scottsdale, Glendale, and Tempe) with 2 percent of
total deposits, and it is the smallest of the three banks in its Prescott service area
with 17.2 percent of total deposits.
Bank of Scottsdale has assets of $11,338,000, and deposits of $9,566,000. Its
single office is located in Scottsdale, a suburb of Phoenix. It is the smallest of the
eight banks in the Phoenix service area with 0.9 percent of total deposits of such
banks.
There are 16 banks in Arizona, with the four largest accounting for 90.6 per­
cent of total IPC deposits in the State. Pioneer Bank has 1.4 percent of such
deposits and Bank of Scottsdale has 0.9 percent.
There is some direct com petition between the participating banks in the
Phoenix service area.
Because of the relatively small market share held by the merging banks, par­
ticularly in the Phoenix service area, and the presence of much larger banks in
both Phoenix and Prescott (where the two largest banks in the State have offices),
it does not appear that the proposed merger, if consummated, would have a sig­
nificantly adverse effect on com petition.
B a s is

fo r

C o r p o r a t io n

a p p r o v a l,

J a n u a ry

20,

1966

Among 17 banks in Arizona operating 263 offices, the largest bank, based on
October 13, 1965 statistics, holds 45.6 percent and 47.1 percent of the aggregate
IPC deposits and loans, respectively, and operates 92 of the offices. The four
largest banks, combined, hold 91.6 percent and 91.2 percent of the IPC deposits
and loans, respectively, and operate 234 of the banking offices. Pioneer, operat­
ing four offices, ranks sixth on a statewide basis, holding 1.1 percent of the IPC
deposits and 1.3 percent of the loans. Bank of Scottsdale, a unit bank, holds less
than one-half of 1 percent in each category and ranks twelfth. The resulting bank
would continue to rank sixth in the State.
In the Phoenix clearing house area, which includes Scottsdale and is the rele­
vant service area under consideration in this proposal, there are eight banks
operating 90 offices, including 79 offices of the State’s four largest banks. Pioneer,
operating three offices in the area (none in Scottsdale), ranks sixth in volume of




37

BANK ABSORPTIONS APPROVED BY THE CORPORATION

IPC deposits and loans; Bank of Scottsdale, a unit bank, ranks last. The resulting
bank would attain fifth position among seven banks remaining in the area, but
would be operating only four of the 90 banking offices and would hold 2.4 percent
and 2.1 percent, respectively, of the local IPC deposits and loans. It would have
approxim ately one-half the volume held by the local offices of the fourth largest
bank in the Phoenix area and would be substantially overshadowed by local
offices of the three largest banks. Bank of Scottsdale competes directly in that
city with nine branches of the State’s three largest banks.
Competition between the merging banks which would be eliminated is not sig­
nificant and their merger will tend to increase com petition to some degree with
the larger banks because of enlarged resources and a greater capital base. The
broader range of banking services which the resulting bank could provide would
be beneficial to its customers.
It is concluded that the merger is in the public interest.

In
operation

To be
operated

67,425

20

21

1,552

1

Peoples Bank & Trust Company,
Rocky Mount, North Carolina
to merge with
The Peoples Bank,
Norlina
S u m m a ry

B anking offices

Resources
(in
tho usan ds
of dollars)

Case No. 3

re p o rt

by

A tto rn e y

G e n e r a l,

D ecem ber

6,

1965

Peoples Bank & Trust Company was organized on April 1, 1931. It has 20 offices
located throughout the northeastern portion of North Carolina and, as of Septem­
ber 30, 1965, had total assets of $67,426,000, total deposits of $61,143,000, net
loans and discounts of $37,556,000, and total capital accounts of $4,583,000.
Peoples Bank of Norlina (population 1,300) was organized July 30, 1947. As of
September 30, 1965, it had total assets of $1,554,000, total deposits of $1,269,000,
net loans and discounts of $746,000, and total capital accounts of $256,000. Its
only office is located in Norlina, North Carolina, 41 miles northwest of Rocky
Mount and 15 miles northeast of the closest branch of Peoples Bank & Trust.
Although the proposed merger would eliminate one of the few remaining inde­
pendent banks in the area, the resulting bank would be in a position to offer the
Norlina area a number of services which Peoples Bank cannot offer in view of its
limited size and its $33,000 lending limit.
On balance, the com petitive effect of the proposed merger would not appear to
be adverse.
B a s is

fo r

C o r p o r a t io n

a p p r o v a l,

J a n u a ry

27,

1966

A pplicant is headquartered in Rocky Mount, North Carolina and serves 10
other communities throughout the northeastern portion of the State. The merging
bank, Peoples, is a small unit bank located in Norlina, 41 miles from Rocky Mount
and 15 miles from the nearest office of the applicant. Peoples serves a limited
area in the vicinity of Norlina and neither participating bank derives loans or
deposits from the other’s service area. There is no significant com petition be­
tween the merging banks which would be elim inated by the proposal.
Applicant has resources of $67.4 m illion and is the largest bank in the 11
communities it serves. The addition of $1.6 m illion in Peoples’ resources would
have no material effect on the com petitive situation in applicant’s service areas.
Competition has not been aggressive between Peoples and its only direct com­
petitor located 4 miles southeast at W arrenton, a bank more than three times the
deposit size of Peoples. The introduction of the larger, aggressive applicant bank
would increase com petition in Peoples’ service area.




FEDERAL DEPOSIT INSURANCE CORPORATION

38

The resulting bank would offer complete banking services in the Norlina area,
including full fiduciary services which are not presently offered by the two banks
in this area, a farm management program, forestry management service, and a
lending lim it adequate to meet the financial needs of the Norlina community.
The effect of the proposal on com petition would not be unfavorable and the
proposed merger, through which the applicant would extend additional and im­
proved banking services to the Norlina area and provide a depth in active man­
agement and adequate measures for management succession which are lacking
at Peoples, is concluded to be in the public interest.

Resources
(in
tho usan ds
of dollars)

S u m m a ry

re p o rt

by

A tto rn e y

To be
op erated

16

18

16,108

Dauphin Deposit Trust Company,
Harrisburg, Pennsylvania
to merge with
Peoples National Bank of Hanover,
Hanover

In
op eratio n

169,996

Case No. 4

2

G e n e r a l,

B anking o ffice s

D ecem ber

29,

1966

The Dauphin Deposit Trust Company has total assets of $164,308,000 and con­
ducts comm ercial banking through 15 offices, 11 of which were acquired by
merger (four as a result of a merger in April, 1964). These offices are located
throughout the city of Harrisburg and surrounding suburbs both east and west
of the Susquehanna River.
The Peoples National Bank of Hanover has total assets of $15,923,000 and
operates its main office and one branch in Hanover, Pennsylvania, which is
located about 40 miles southwest of Harrisburg and about 20 miles southwest of
York, Pennsylvania.
The two banks are not now in com petition with each other, for each does busi­
ness prim arily in a different geographical area. There is no indication that the
removal of one of the banks as a potential entrant into the market of the other
would adversely affect com petition. Thus, it appears, upon the basis of the facts
submitted, that the merger will not have any significant anticom petitive conse­
quences.
B a s is

fo r

C o r p o r a t io n

a p p r o v a l,

F e b ru a ry

10,

1966

The merging banks are headquartered 39 miles apart in the southeast sector of
Pennsylvania. None of the applicant’s 16 offices, which are located in Dauphin
and Cumberland Counties, are closer than 29 miles from Peoples’ two offices
which are situated in York County. The participating banks compete in different
geographical areas and there is not a significant amount of com petition between
them which would be eliminated by the proposal.
The applicant would continue as the second largest bank in Harrisburg and in
the combined service area. The largest bank, a major com petitor of the applicant,
has 18 offices and holds 24.6 percent of the aggregate IPC deposits owned by the
24 banks located in this area. This com petitor is headquartered in York and has
eight branches in applicant’s service area. The resulting bank would hold 23.2
percent of the aggregate IPC deposits; the third largest holds 15.9 percent. Com­
petition in applicant’s service area would not be m aterially affected by the merger.
The York bank also provides direct com petition to Peoples through its two
branches in Hanover. Competitive banking and fiduciary services offered by
Peoples would be expanded by applicant’s entry into Hanover. The enlarged
lending lim it available to Peoples’ present and potential customers would be more
com parable to that of the York bank. Com petition would be enhanced in Peoples’
service area and following consummation of the merger there would remain in
Hanover two local, well-established independent banks in addition to the offices
of the resulting bank and the larger York bank.




BANK ABSORPTIONS APPROVED BY THE CORPORATION

39

The merger would not have an unfavorable effect on com petition. In addition
to the expanded services to be offered in the Hanover area, a greater depth in
management will provide for management succession, which is a problem facing
Peoples bank. It is concluded that the proposed merger is in the public interest.

re p o rt

by

To be
operated

1

2

2,552

A tto rn e y

In
operatio n

21,832

First San Francisco Bank,
San Francisco, California
to merge with
The Mount Diablo First National Bank,
Pleasant Hill
S u m m a ry

B anking o ffice s

Resources
(in
tho usan ds
o f dollars)

Case No. 5

1

G e n e r a l,

J a n u a ry

25,

1966

The two merging banks are newly organized small unit banks, each accounting
for less than 1 percent of all com m ercial bank deposits in its respective service
area. The two banks do not presently compete significantly with each other; one
is located in downtown San Francisco and the other some 18 miles east, on the
other side of San Francisco Bay, in suburban W alnut Creek. Both banks face
strong com petition from the few large banks which account for an overwhelming
share of the com m ercial banking market in each area and from several other
smaller and more localized banks. For these reasons, we conclude that the pro­
posed merger will have no adverse effect on com petition among com m ercial
banks in these areas.
B a s is

fo r

C o r p o r a t io n

a p p r o v a l,

M a rc h

3,

1966

The participating banks are two small unit banks located 31 miles apart. A p p li­
cant serves a lim ited area in downtown San Francisco and Diablo serves a small
area surrounding its location in Pleasant Hill. Each merging bank operates in
distinct geographical areas separated by the San Francisco Bay, the large city of
Oakland and other sm aller communities. There is no com petition between the
participating banks which would be elim inated by the proposal.
Each of the merging banks competes with the same six large banks, five of
the latter each having total deposits exceeding $1 billion. The combined deposits
of the participating banks would be less than $20 m illion. The acquisition of
D iablo’s resources by the applicant would have no effect on com petition in the
applicant’s service area. The com petitive structure in D iablo’s service area would
be virtually unchanged by replacing a small independent unit bank with a small
independent bank operating one branch. In addition to the six large banks oper­
ating in D iablo’s service area, and the resulting bank, there would remain two
local independent banks to serve the area.
Diablo is operating with a seriously impaired common capital account, and
attempts to sell additional common stock have been unsuccessful. The proposal
would resolve the serious management and capital problems of Diablo and serve
to prevent its closure. The proposed merger is concluded to be in the public
interest.

Case No. 6
The First National Bank of Taft,
Taft, Texas
to acquire the assets and assume
the liabilitie s of
The Taft Bank, Unincorporated,
Taft




Resources
(in
tho usan ds
o f dollars)

B anking office s
In
operation

To be
operated

2,806

1

1

3,031

1

40

FEDERAL DEPOSIT INSURANCE CORPORATION
S u m m a ry

re p o rt

by

A tto rn e y

G e n e r a l,

F e b ru a ry

17,

1966

Taft, Texas has a population of 3,500. Presently, it has three banks, The First
National Bank of Taft, The Taft Bank, Unincorporated, and the First State Bank of
Taft.
First National Bank of Taft and Taft Bank, Unincorporated have been under
common ownership and common management for approxim ately 40 years. The
partners of The Taft Bank, Unincorporated own 84 percent of the capital stock
of First National Bank of Taft, and both banks share the same president and vice
president.
In view of the common ownership and common management of the two banks,
the proposed acquisition of assets and assumption of liabilities of The Taft Bank
by The First National Bank of Taft will not adversely affect com petition.
B a s is

fo r

C o r p o r a t io n

a p p r o v a l,

M a rc h

16 ,

1966

The proposed transaction would combine two small banks of sim ilar size which
operate from the same building in Taft, Texas, under common management and
ownership. There is no com petition between them which would be elim inated by
the proposal.
A pp licant’s $2.4 m illion IPC deposits would be slightly more than doubled
under the proposed transaction and the resulting bank would hold 35.5 percent
of the aggregate of such deposits owned by the four banks in the service area.
The largest bank, 8 miles northwest, holds 50.2 percent of such deposits. The
local competing bank in Taft holds 14.3 percent. The increase in concentration
would have no practical effect on com petition in Taft or in the service area since
the participating banks have operated essentially as one com petitive unit under
common ownership and management for 40 years.
The elim ination of Taft Bank as a banking alternative would cause no incon­
venience since both participating banks occupy the same building. A pp licant’s
increased lending lim it would be sufficient to meet the credit needs of the com ­
munities served and the resulting bank would be in a position to better aid in
the development of the area.
The formal acquisition of the private bank by the applicant would have no
unfavorable effects on com petition and would not result in a m onopoly or be in
restraint of trade. The proposed transaction would bring the benefits of govern­
ment agency supervision and the protection of Federal deposit insurance to
that portion of the business form erly under Taft Bank and the larger resulting
bank could more adequately meet the convenience and needs of the community
to be served.

Resources
(in
tho usan ds
o f dollars)

Case No. 7
Birnie Trust Company,
Taneytown, Maryland
(change title to Taneytown
Bank & T rust Company)
to merge with
First National Bank Taneytown, Maryland,

Banking offices
In
operation

To be
operated

6,273

2

3

4,466

1

T onoi/+/M
iin

S u m m a ry

re p o rt

by

A tto rn e y

G e n e r a l,

F e b ru a ry

1,

1966

The Birnie Trust Company of Taneytown, Maryland, with total assets of $5,879,000,
proposes to merge First National Bank, also of Taneytown, which has total
assets of $4,204,000, and to operate the merged bank as a branch office.
Applicant bank and merging bank are the only banking institutions in Taney­
town. The participating banks are located in the business district of the town
which serves an area both agricultural and industrial. Merging bank is reportedly




BANK ABSORPTIONS APPROVED BY THE CORPORATION

41

operating with a serious management problem. Neither of the participating banks
has been involved in a merger or acquisition during the past 10 years.
The proposed merger will elim inate all com petition between the merging banks,
but the overall effect of the merger would not be to reduce com petition in the
interested com munities substantially because of the considerable number of
banks in the vicinity of Taneytown.

Basis fo r Corporation approval, March 16, 1966
The proposal would merge two small banks headquartered in Taneytown, Mary­
land. The applicant operates one branch which is located 7 miles southeast from
its main office; the sole office of the other bank is situated one block from appli­
cant’s main office. There are no other banks in Taneytown and prim ary com pe­
tition is provided by 10 banks which have 17 offices located within 12 miles of
any office of the merging banks. The evidence indicates that the elim ination of
com petition between the merging banks or between the absorbed bank and other
area banks would not be substantial, especially in relation to the overall com pe­
tition existing among the numerous banking offices in the area.
The resulting bank would hold a modest share (4.8 percent) of the aggregate
deposits owned by all banks in the service area and would be com parable in
deposit size to three of its com petitors. Each of the four largest banks hold 13
percent, or more, of the aggregate deposits and would be substantially larger
than the resulting bank. The com bination of resources of the merging banks
would have no significant adverse effects on com petition in the service area.
The limited resources of the merging banks has restricted their ability to com­
pete and meet the expanding needs of the service area. Their com bined resources
would enable the resulting bank to provide improved and expanded com petitive
services, especially in the fields of commercial and industrial lending, instalment
lending and trust services.
The proposed merger would not substantially lessen com petition, tend to create
a monopoly nor be in restraint of trade. It would resolve a serious lack of depth
in the absorbed bank’s management and enable the resulting bank to more ade­
quately meet the expanding needs of the community.

Case No. 8
First State Bank,
A rm our, South Dakota
to acquire the assets and assume
the lia b ilitie s of
Delmont State Bank,
Delm ont

Resources
(in
thousands
o f dollars)

B anking offices
In
operatio n

To be
operated

3,390

1,600

Sum m ary report by A tto rn e y General, February 7, 1966
The parties to the proposed acquisition are the only banks located in adjacent
communities, and they therefore provide the most likely alternative sources of
banking services for these communities. Since there are few other banking insti­
tutions readily available to the residents of these communities, this acquisition
would severely restrict the com m unities’ banking choices. At the same time, no
improvement in services to the public is promised. In view of these facts and the
possibility that Delmont could be sold to parties not now competing in this area,
the proposed acquisition will have an adverse effect on com petition in the com­
munities served by State and Delmont.

Basis fo r Corporation approval, March 24, 1966
The applicant, a small unit bank in Armour, South Dakota, would acquire the
assets and assume the liabilities of a unit bank less than one-half its size located




42

FEDERAL DEPOSIT INSURANCE CORPORATION

in Delmont, 12 miles southeast. The two banks prim arily serve their immediate
areas and do not solicit business in each others’ service area. Com petition be­
tween them which would be eliminated by the proposal is not significant.
The managing officer and principal stockholder of Delmont Bank desires to
retire and liquidate his investment in the bank. The applicant can provide the
managerial resources for the Delmont Bank, which would be operated as a branch
and would be actively managed by the present cashier who has been with Del­
mont Bank since 1943. The proposal would assure continued banking facilities in
Delmont under locally known active management.
A pplicant would continue its position as third largest in the combined service
area and the resulting bank would hold $3.8 m illion in IPC deposits. Its closest
com petitor is a branch of a bank with $57 m illion in total deposits located 11
miles north from Armour. There would be five other banks in the combined serv­
ice area ranging in IPC deposit size from $1.5 m illion to $5.6 m illion. The pro­
posal would have no significant adverse effects on com petition in the combined
service area.
Following the consummation of the proposal there would be seven banking
alternatives within a 23-mile radius of Armour, and the proposal would not result
in a monopoly, a substantial lessening of com petition, or be in restraint of trade.
The convenience and needs of the Delmont comm unity would be served in a more
adequate manner through new and expanded services which would be offered by
the larger resulting bank.

Resources

(in

Case No. 9

B anking office s

tho usan ds
of dollars)

United Bank of Union,
Union, Missouri
to acquire the assets and assume
the liabilitie s of
Bank of Gray Summit,
Gray Sum m it

In
o peration

To be
operated

10,950

1

1

1,961

i

Approved under emergency provisions. No report requested from Attorney
General.
B a s is f o r C o r p o r a t io n A p p r o v a l, A p r i l 4 , 1 9 6 6
The elim ination of the assets classified Loss and Doubtful would exceed the
bank’s capital structure and impair its deposits. Efforts to rehabilitate the bank
by collection of these assets or by recapitalization were unsuccessful and the
bank is faced with the threat of permanent closing. Since the estimated amount
of deposit liabilities in excess of the insured lim it of $10,000 is moderate, the
Corporation deems it to be in the public interest to acquire the unacceptable
assets of Gray Summit so that a deposit assumption transaction can be effected
with United Bank of Union. Missouri law does not permit branching, so the office
at Gray Summit will be closed; however, Union is located only 12 miles away and
management of that institution is fam iliar with the service area of Gray Summit.

Case No. 10
Bank of Buffalo,
Buffalo, New York
to merge with
State Bank of Kenmore,
Kenmore




Resources
(m
tho usan ds
of dollars)

B anking o ffice s
In
op eratio n

To be
operated

58,765

8

9

18,167

1

BANK ABSORPTIONS APPROVED BY THE CORPORATION

43

Sum m ary report by A tto rn e y General, March 14, 1966
The proposed merger of the Bank of Buffalo, with total deposits of $51 m illion,
and the State Bank of Kenmore, with total deposits of $16 m illion, would elim inate
existing com petition between the merging banks and would elim inate the only
remaining independent bank in the area in which these banks now compete with
each other, an area with an estimated population of over 300,000.
Commercial banking in the area affected and in the Buffalo area generally is
highly concentrated, with the two largest of the six banks in the Buffalo area
accounting for over 80 percent of loans and deposits and the three largest having
more than 96 percent of such accounts held by area banks.
W hile the amount of com petition that would be eliminated by the merger is
relatively small, and the added concentration in the area of the resulting bank is
insubstantial, it is our opinion that in light of the existing concentration in the
populous industrial and trade area of Buffalo, the elim ination of one of only five
banking alternatives in the principal area affected would have an adverse effect
on com petition.

Basis fo r Corporation approval, May 2, 1966
The applicant, headquartered in Buffalo, New York, proposes to acquire by
merger a relatively small bank in Kenmore, 5.8 miles north. The applicant’s branch
closest to Kenmore Bank is 2.8 miles distant. There are a number of competing
bank offices closer to, and intervening, the applicant’s offices w hich are nearest
Kenmore Bank. Kenmore Bank has been a very conservatively operated institu­
tion and does not afford substantial com petition to the applicant or to other banks
in its service area.
The size of the applicant bank w ill not be significantly increased as a result of
the proposed merger. The resulting bank w ill have IPC deposits of $58 m illion.
The three larger banks in applicant’s prim ary service area have main offices
within one-half mile of the applicant’s main office and each holds IPC deposits
of $299 m illion or more. A branch of one of these banks is located two blocks
from Kenmore Bank and all of these three large banks have offices in Kenmore
Bank’s prim ary service area. In addition, the applicant competes with the main
offices of three mutual savings banks each of which holds $259 m illion or more
in IPC deposits and is located within 0.3 mile of applicant’s main office. Two
branches of two of these mutual savings banks also compete with Kenmore Bank
in its primary service area.
The village of Kenmore is situated in an active retail shopping area in which
there is a good demand for both com m ercial loans and consumer credit. The
conservative Kenmore Bank with its management succession problem and rela­
tively inexperienced executive officer, its lim ited loan volume and restrictive lend­
ing policies, has not adequately met the needs of the community. The resulting
bank will offer numerous additional services which are not presently available at
Kenmore Bank.
The proposed transaction w ill not tend toward a monopoly, substantially lessen
com petition or be in restraint of trade in any area served by the participating
banks. The management problems of Kenmore Bank would be resolved by the
proposal and the resulting bank, with its larger resources and aggressive man­
agement, will enhance com petition in the Kenmore area and more adequately
serve the convenience and needs of the Kenmore community.

Case No. 11
The Northwestern Bank,
North W ilkesboro, North Carolina
to merge with
Citizens Bank,
Charlotte




Resources
(in
tho usan ds
o f dollars)

In
o p eratio n

To be
operated

26 6,56 0

67

69

11,094

2

B anking office s

FEDERAL DEPOSIT INSURANCE CORPORATION

44

Summary report by A tto rn e y General, March 15, 1966
Northwestern is the fifth largest bank in the State of North Carolina, with 64
branches located throughout the State and with total deposits of $203.8 m illion
as of June 30, 1965.
Both the main office and only branch of Citizens Bank are located in Charlotte,
North Carolina, which has a population of 201,564. As of June 30, 1965, Citizens
had total deposits of $9.1 m illion. It ranks seventh in total deposits among eight
banks with main offices or branches located in Charlotte. Among its com petitors
are the four largest banks in the State, two of which have their main offices in
Charlotte.
Com petition between the merging banks appears minimal, since the closest
offices of Northwestern are located 32 to 38 miles from the city. In view of this
fact and in view of the size of the merging bank in comparison with its com peti­
tors in Charlotte, the effect of the proposed merger on com petition would not be
adverse.

Basis fo r Corporation approval, May 2, 1966
Northwestern, fifth largest bank in North Carolina with resources of $266.6
m illion, is headquartered in North W ilkesboro and operates a branch system
throughout the north-central and western sections of the State. It would acquire
through the merger a bank with two offices and $11.1 m illion in resources located
in Charlotte, 79 miles from North W ilkesboro. The merging banks’ closest offices
are 38 miles apart and a number of banking alternatives intervene their locations.
There are few, if any, deposit and loan accounts held by either merging bank
which originate in the other’s service area.
Northwestern is directly com petitive at several locations with the four largest
banks in the State. On June 30, 1965, its 65 offices held 5.2 percent of the total
deposits of the State’s 838 banking offices. The largest bank had 94 offices hold­
ing 21.6 percent of the deposits represented; the fourth largest bank, with 93
offices, held 9 percent; and the resulting bank would hold 5.4 percent. The
acquisition by Northwestern of the relatively small Citizens Bank would have no
adverse effect on com petition in Northwestern’s present service areas.
Citizens and four other small banks face direct com petition in Charlotte, C iti­
zens’ prim ary service area, from the State’s four largest banks, two of which
have main offices in the city. Each of the large banks has deposits of more than
$350 m illion as compared to $9.1 m illion for Citizens and $7 m illion to $15 m illion
held by the other small banks. Northwestern’s entry into Charlotte would sub­
stantially increase the lending lim it available at Citizens and provide trust, agri­
cultural and complete data processing services, none of which Citizens presently
offers.
The proposed merger would not eliminate com petition, tend to create a monop­
oly nor in any other manner be in restraint of trade. The larger financial resources
and additional services to be offered by the resulting bank would increase com ­
petition in Charlotte and more adequately meet the convenience and needs of
the growing Charlotte community.

Case No. 12
Northwest Pennsylvania Bank &
Trust Company,
Oil City, Pennsylvania
to merge with
First National Bank of
Cambridge Springs,
Cam bridge Springs




Resources
(in
tho usan ds
of dollars)

95,776

4,715

B anking offices
In
operation

13

To be
operated

14

1

BANK ABSORPTIONS APPROVED BY THE CORPORATION

45

Summary report by A tto rn e y General, February 18, 1966
Northwest, a twelve-office bank in northwestern Pennsylvania with deposits of
$85,298,000, proposes to acquire the single-office First National Bank in Cam­
bridge Springs, with deposits of $4,142,000.
It appears that com petition between the merging banks is probably not sub­
stantial.
The four-county area in which Northwest’s offices are located has been the
scene of a pronounced merger trend involving the acquisition of more than 20
independent banks in recent years. Northwest has been a principal participant
in this trend, having obtained its 11 branches by acquisitions since 1955.
It is our opinion that the proposed merger, standing alone, would not appear
to have a significant adverse effect on com petition, but it represents another in
a series of mergers which has resulted in the elim ination of more than 20 inde­
pendent banks as com petitors in the four-county area, and has furthered the
concentration of banking resources in the hands of a few large institutions.

Basis fo r Corporation approval, May 4, 1966
Northwest is headquartered in Oil City, Pennsylvania and presently operates
13 offices in 10 communities located throughout four counties, including two
branches in Meadville which serve the central portion of Crawford County. The
proposed merger would extend Northwest’s influence to the north-central part of
Crawford County through the acquisition of National’s sole office in Cambridge
Springs. Meadville, 15 miles from Cambridge Springs, is the closest Northwest
location to National and a competing bank office intervenes the communities.
Neither merging bank derives a significant amount of business from the other’s
service area.
Northwest is the largest bank in its present service areas and has deposits of
$86.2 million. The addition of N ational’s $4.2 million in deposits would increase
Northwest’s share of the aggregate deposits held by all banks in the combined
service area from 19.5 percent to 20.4 percent. The second largest proportion,
19.1 percent, is held by Northwest’s local com petitor in Oil City. Included among
the closest of National’s com petitors is a Meadville bank’s branch, 9 miles from
Cambridge Springs. The Meadville banks are already in direct com petition with
Northwest. National’s closest com petitor is a small bank, with $5.6 m illion de­
posits, 7 miles distant. Two large banks, with deposits of more than $45 m illion
and $104 million, each have a branch in National’s service area. The small
increase in Northwest’s size would have no significant effect on com petition in
its service areas or in the area to be served by the resulting bank. The substitu­
tion of National by a branch of Northwest would not adversely affect the com peti­
tive banking structure in the Cambridge Springs area.
The proposed merger would not substantially lessen com petition or tend to
create a monopoly, nor would it be, in any other manner, in restraint of trade.
The conservatively operated National Bank would be replaced by a branch of an
aggressively managed institution with substantially greater financial resources
and more com petitive banking services which would benefit the Cambridge
Springs area.

Case No. 13
First National Bank of Hawaii,
Honolulu, Hawaii
to merge with
Cooke Trust Company, Limited,
Honolulu

B anking offices

Resources
(in
tho usan ds
of dollars)

In
op eration

385,620

38

4,085

1

To be
op erated

391

Summary report by A tto rn e y General, February 15, 1966
This is an application by the second largest commercial bank in the State of
Hawaii and County of Honolulu to acquire the third largest trust company in the




46

FEDERAL DEPOSIT INSURANCE CORPORATION

State of Hawaii and County of Honolulu. The immediate reason for the proposed
merger is a recent change in the banking and trust laws of Hawaii under which
State banks, previously prohibited from engaging in trust business, are now per­
mitted to do so, and trust companies, previously prohibited from engaging in the
general banking business, are now in a position to enter that area.
Concentration in both of the areas here involved is particularly high at the
present time. In comm ercial banking, the two largest banks control approxim ately
75 percent of the total deposits, and applicant bank, the second largest bank,
accounts for approxim ately 33 percent. In the trust business, the three largest
companies in the State account for approxim ately 92 percent of total assets;
Cooke Trust ranks third with approxim ately 13 percent.
Because of the removal of the previous statutory wall between them, the appli­
cant bank is now one of the most significant potential com petitors in the business
of Cooke Trust. The proposed merger will eliminate such potential com petition
and forestall the opportunity for the reduction of concentration in the trust area.
Approval of this application would undoubtedly also trigger additional mergers
among other com mercial banks and trust companies in the State. In this respect
Bank of Hawaii, the largest bank in the State, is currently negotiating to acquire
through merger the largest trust company in the State. Mergers such as these
can only serve to perpetuate the dominant position of Bank of Hawaii and ap pli­
cant bank, the two largest banks in the areas concerned. We concluded that the
proposed merger would have serious adverse com petitive effects.

Basis fo r Corporation approval, May 12, 1966
The proposal would merge a $4.1 m illion uninsured trust company not engaged
in accepting deposits into a $385.6 m illion commercial bank which does not exer­
cise trust powers. The trust company, Cooke, would be operated as a trust de­
partment by the com mercial bank, National, and C ooke’s sole office would be
closed after the transfer of trust operations to National’s main office is accom ­
plished. National operates 38 offices located on five major islands of Hawaii.
The merging institutions are headquartered three blocks apart in Honolulu,
Hawaii. They serve the same area but there is a negligible amount of existing
com petition between them because of the basically different nature of their
operations.
National is the second largest bank serving Hawaii and holds 32.8 percent of
the aggregate total deposits owned by the seven com mercial banks in the State;
the largest bank holds 42 percent. The acquisition of the trust com pany’s rela­
tively small volume of resources by National would not significantly change the
relative sizes of the commercial banks or m aterially alter the existing com petitive
banking structure. Trust services eventually will be available at all of National’s
branches, which are located throughout the islands, on an appointm ent basis.
Present and potential customers will have the added convenience of conducting
their fiduciary and regular banking business in the same location. Trust custo­
mers w ill be more fully protected under banking regulations, by deposit insur­
ance, and by the far greater capital resources of the resulting bank. Trust services
would be improved through the availability of National’s many specialized depart­
ments and customer services, including a well-staffed economic research depart­
ment, securities research department and auditing department.
The proposed merger would not substantially lessen existing com petition or
tend to create a monopoly, nor would it, in any other manner, be in restraint of
trade. Insofar as it may be asserted that the merger would elim inate potential
com petition, it is found that any such anticom petitive effects are clearly out­
weighed in the public interest by the probable effect of the transaction in meeting
the convenience and needs of the community to be served by making better pro­
vision for trust services than would result from the separate operation of the two
institutions.




BANK ABSORPTIONS APPROVED BY THE CORPORATION

Case No. 14
Golden State Bank,
Bell Gardens, California
to merge with
Bank of Pico Rivera,
Pico Rivera

47

Resources
(in
tho usan ds
o f dollars)

In
o p eratio n

To be
op erated

23,935

4

5

17,537

1

B anking offices

Summary report by A tto rn e y General, February 1, 1966
The proposed merger would combine two relatively small banks doing business
in east-central Los Angeles County. Golden State Bank currently operates four
offices in that area and has total deposits of $21 million. Bank of Pico Rivera is
a unit bank but is of sim ilar size in resources, with total deposits of $15 million.
Each bank accounted for about 0.1 percent of all commercial bank deposits in
Los Angeles County in 1964. The two banks apparently compete with each other
at present only to a negligible extent, and their merger would not significantly
increase concentration among com mercial banks in Los Angeles County. The
proposed merger is not likely to have an adverse effect on com petition.

Basis fo r Corporation approval, June 1, 1966
The proposal would merge two small banks of sim ilar size located in the Los
Angeles, California m etropolitan area. Applicant is headquartered in Bell Gardens
and operates three branches at three locations within 8 miles of its main office.
The sole office of the other bank is located in Pico Rivera, 7 miles from Bell
Gardens. A branch of Bank of Am erica directly intervenes the merging banks’
closest offices which are 31 miles apart. The amount of business each merging
/2
bank derives from the other’s service areas is negligible.
Applicant competes with branches of five of the eight largest banking systems
in the State and Pico Rivera Bank competes with three of these large banking
systems in its service area. The resulting bank would hold 14.2 percent, the
fourth largest proportion, of the aggregate IPC deposits owned by the 26 banking
offices in the combined service area. Seven branches of the Bank of Am erica
hold 36.3 percent, and the second and third largest proportions (slightly more
than 17 percent each) are held by branches of the second and fifth largest banks
in the State.
The substantially increased lending lim it of the resulting bank would perm it
more adequate lending services to be offered in the communities to be served,
and certain other services of the participating banks are to be extended or ex­
panded. The resulting bank, because of its increased size and data processing
capabilities, should be able to develop specialized programs to meet the needs
and demands of all areas served as they are determined.
The proposed merger would not substantially lessen com petition, or tend to
create a monopoly, and it would not, in any other manner, be in restraint of trade.
The asset and management problems of the Pico Rivera Bank would be resolved
and the resulting bank would provide greater service to the comm unities involved.

Resources

Case No. 15
Matinecock Bank,
Locust Valley, New York
to merge with
Matinecock Safe Deposit Company,
Locust Valley




un

B anking o ffice s

(in

tho usan ds
o f dollars)

In
op eratio n

To be
op erated

17,930

1

1

23

FEDERAL DEPOSIT INSURANCE CORPORATION

48

Sum m ary report by A tto rn e y General, May 31, 1966
M atinecock Bank proposes to merge into it Matinecock Safe Deposit Company,
its subsidiary, which is engaged in the business of renting vaults and safe deposit
boxes. The purpose of the merger is to sim plify adm inistration and the proposed
transaction would have no effect on com petition.

Basis fo r Corporation approval, July 5, 1966
The applicant, a State member bank, owns all except directors’ qualifying
shares of M atinecock Safe Deposit Company, which conducts its business only
at the main office of the applicant. All officers of the safe deposit company are
also officers of the applicant. The purpose of the proposal is to elim inate du plica­
tion in accounting procedures and in the preparation of reports and records. The
safe deposit facilities would be continued by the applicant follow ing consumma­
tion of the merger.
The proposed merger would have no effect on com petition and the factors of
financial and managerial resources, future prospects, and convenience and needs
of the comm unity to be served are determined to be favorable to the proposal.

Case No. 16
Community Bank,
H untington Park, California
to acquire the assets and assume
the liabilitie s of
Commerce City Bank,
City of Commerce

B anking office s

Resources
(in
tho u sa n d s
o f dollars)

In
operation

To be
operated

63,582

4

5

6,735

1

Summary report by A tto rn e y General, May 31, 1966
A pplication has been made to merge the Commerce City Bank, City of Com­
merce, California, into the Community Bank, Huntington Park, California, both of
which are located in Los Angeles County.
Banking in Los Angeles is presently highly concentrated in the large C alifornia
banking organizations, including Bank of America, Security First National Bank,
United California Bank, Union Bank, and Crocker-Citizens Bank, all of which, ex­
cept Union Bank, have offices in the immediate service areas of one or both of
the merging banks. Of the total $12 billion of bank deposits in Los Angeles
County, these five banks possess approxim ately $10.4 billion, or 86.3 percent. In
contrast, the merging banks account for $56.5 m illion, or 0.47 percent, of the
total bank deposits in the county.
In view of the relatively m inor size of the applicant banks in relation to the
highly concentrated banking market in which they now compete and the fact
that their respective service areas are currently served by numerous other com ­
peting banks, including offices of the aforementioned large C alifornia banking
systems, it is our opinion that the merger of the applicant banks w ill not adversely
affect competition.

Basis fo r Corporation approval, July 5, 1966
The main office of Community and the sole office of Commerce are located 4 1
/2
miles apart in the Los Angeles, California m etropolitan area. These are the
closest offices of the banks participating in the proposed purchase and assump­
tion transaction. Numerous offices of com peting banks intervene Com m unity’s
four offices and the office of Commerce. The service areas of the participating
banks do not overlap.
The assumption by Community of the deposits of Commerce would increase
Com m unity’s share of the aggregate IPC deposits in the resulting service area
by less than 1 percent. The resulting bank would hold 9.9 percent of such de­




BANK ABSORPTIONS APPROVED BY THE CORPORATION

49

posits and the 17 offices of Bank of Am erica hold 43.7 percent, the largest pro­
portion. Four of the five largest banks in the State presently compete directly
with both participating banks. The proposal will bring Community into direct com ­
petition with the eighth largest bank in the State which has an office in the
service area of Commerce. The increased size of Community and the substitution
of its branch for the selling bank’s office would not have a material effect on
com petition in either bank’s service area.
The proposed transaction would not substantially lessen com petition or tend
to create a monopoly, nor would it be, in any other manner, in restraint of trade.
Commerce is operating without effective management, the bank is drifting and
its condition is deteriorating day by day. This proposal would aid in resolving
the severe asset and management problems of Commerce.

Resources

Case No. 17
California Canadian Bank,
San Francisco, California
to acquire the assets and assume
the liabilitie s of
Northern California National Bank
of San Mateo,
San Mateo

Banking office s

(in
Vjn

tho usan ds
of dollars)

In
op eration

To be
operated

72,716

4

6

8,499

2

Summary report by A tto rn e y General, March 24, 1966
This proposal would unite the Canadian Bank, with $59 m illion in total deposits
and operating three offices in San Francisco, Los Angeles, and Palo Alto, and
Northern California National, with total deposits of $6 m illion and operating
offices in San Mateo and nearby Belmont. This com bination may have the effect
of elim inating some existing com petition between these two banks; for example,
in 1965, $1,079,000, or 19 percent, of Northern California N ational’s total loans
originated in Canadian Bank’s service areas. However, because neither bank has
a significant share of the commercial banking business in any area they pres­
ently serve, their com bining is not likely to have an adverse effect on com petition.

Basis fo r Corporation approval, July 21, 1966
The applicant bank, Canadian, is a well-established institution with $72.7 m il­
lion in resources and four offices in operation. Its outstanding stock, except for
directors’ qualifying shares, is owned by Canadian Imperial Bank of Commerce,
Toronto, Canada. Canadian’s main office serves a small area in downtown San
Francisco, California, one branch is in Los Angeles, one is in Palo Alto and a
recently established branch is in Lafayette, across the San Francisco Bay from
the main office. Canadian proposes to purchase San Mateo Bank which was
opened in 1964 and has $8.5 m illion in resources. The selling bank’s main office
is in San Mateo and its only branch is in Belmont. Canadian’s Palo Alto branch
and the selling bank’s Belmont branch are 12 miles apart and are the participat­
ing banks’ closest offices. Numerous banking offices intervene these locations and
the service areas do not overlap.
Canadian competes directly with numerous offices of the eight largest banks in
C alifornia at its four locations. The addition of the selling bank’s $6 m illion in
deposits would provide the resulting bank with deposits of $70 m illion compared
to $1 billion or more held by each of seven of its com petitors. The selling bank
competes in San Mateo directly with seven offices of six banks, including four
banks which have more than $1 billion in deposits. Belmont branch com petitors
are three of the largest banks in C alifornia; two of these banks have more than
$3.5 billion in deposits and one bank has deposits of $680 million.
The increase in size of Canadian and the substitution of its branches for the
selling bank’s offices would have no adverse effects on com petition in either




50

FEDERAL DEPOSIT INSURANCE CORPORATION

bank’s service areas. Canadian’s entry into San Mateo and Belmont would ex­
pand and add to the banking services presently offered by the selling bank. The
increased lending limits, the availability of additional funds for lending, and spe­
cialized loan services are significant in view of the recent acceleration of indus­
trial development in the San Mateo and Belmont areas. Canadian’s trust depart­
ment facilities also would be available at the proposed branch locations.
The proposed transaction would not substantially lessen com petition or tend
to create a monopoly, nor would it be, in any other manner, in restraint of trade.
All other factors required to be considered are favorable to the proposal which
would strengthen the management of the San Mateo Bank’s offices and provide
broader banking services to the communities served by the selling bank.

Case No. 18
The First Trust Company
of Allegany County,
Wellsville, New York
to merge with
The First National Bank of Cuba,
Cuba

Banking offices

Resources
(in
tho usan ds
of dollars)

In
op eratio n

To be
operated

29,187

6

7

3,108

Summary report by A tto rn e y General, March 29, 1966
The proposed merger involves the second largest (First Trust) and the
(First National) of six banks competing in the Cuba, New York area.
however, of First N ational’s very small size and its apparent inability
the credit demands of its area, the proposed merger would not appear
adverse com petitive effects.

smallest
In view,
to meet
to have

Basis fo r Corporation approval, A ugust 4, 1966
First Trust, total resources $29.2 m illion, operates a main office in W ellsville
and five branches throughout the remainder of Allegany County, New York. First
National, total resources $3.1 million, operates from a lone office in Cuba, 22
miles northwest of W ellsville and 8 miles west of Friendship, the site of First
T rust’s nearest office.
Available information indicates there is little com petition between the two
banks that would be eliminated by their merger. First National lacks successor
management and may already have become an ineffective com petitor because of
its inability to meet the credit demands of its area. By virtue of this merger dis­
tinct benefits will accrue to the Cuba community, including a much expanded
supply of credit, in terms of amount and variety, and several customer services
already commonly provided by practically all the banks in the area except First
National.
First Trust is the third largest bank in the relevant service area, holding about
17.9 percent of the aggregate IPC deposits, and will move to second rank by the
addition of First National’s small share, 1.8 percent. First Trust w ill continue to
receive strong com petition from the other W ellsville bank which holds 14.9 per­
cent of the aggregate deposits, and from 11 other banks in the area. Cuba resi­
dents will continue to have alternative banking choices easily accessible, includ­
ing its other unit bank.
The proposed merger would not substantially lessen com petition or tend to
create a monopoly, nor would it, in any other manner, be in restraint of trade.




BANK ABSORPTIONS APPROVED BY THE CORPORATION

Case No. 19
The Bank of Prince William,
Woodbridge, Virginia
to merge with
The National Bank of Rosslyn,
Rosslyn

51

Resources
(in
tho usan ds
o f dollars)

B anking office s
In
operation

To be
operated

19,216

10

12

6,465

2

Summary report by A tto rn e y General, June 21, 1966
Bank of Prince W illiam, which has assets in excess of $19 m illion and operates
nine branches, all located in Prince W illiam and Fairfax Counties, is a subsidiary
of Virginia Commonwealth Corporation, a bank holding company. The Bank of
Rosslyn, with assets of $6,465,000, has experienced substantial bad loan w rite­
offs, and banking agencies have apparently encouraged its merger by Bank of
Prince W illiam. In the area served by the resulting bank, two other bank holding
companies, United V irginia Bankshares and First V irginia Corporation, control
19.5 percent and 13.2 percent, respectively, of the deposits of the 15 other banks
operating therein. The proposed merger will give V irginia Commonwealth 4.7
percent of such deposits. The present service areas of the merging banks do not
overlap and com petition between them is negligible.
The effect of the proposed merger on com petition will not be adverse.

Basis fo r Corporation approval, A ugust 4, 1966
This merger would combine National, which has been in operation for about
2Vi years, with the applicant, a well-established bank. National’s two offices are
located in A rlington County, Virginia, and applicant operates 10 offices: the main
office and seven branches in Prince W illiam County and two branches in Fairfax
County. The nearest offices of these two banks are 8 miles apart and numerous
competing banks intervene. The service areas overlap at this point to a small
degree and the amount of com petition between the subject banks which would
be elim inated by this merger is not significant.
The resulting bank would hold 4.7 percent of the aggregate IPC deposits pres­
ently held by the 17 banks in the overall service area. The five largest banks hold
proportions ranging from 7.7 percent to 19.5 percent. In this group, the applicant
already competes with the fourth largest bank, which holds 11.1 percent. The
increased size of applicant and the extension of its operations into Arlington
County would not have a significantly adverse effect on com petition in the service
area of either of the merging banks.
During its relatively short existence, National has experienced serious manage­
ment and asset problems which would be resolved by the proposed transaction.
This merger would not substantially lessen com petition, tend to create a monop­
oly nor in any other manner be in restraint of trade.

Case No. 20
LeClaire State Bank,
LeClaire, Iowa
(proposed new bank)
to acquire a portion of the assets
and assume a portion of
the liabilitie s of
Farmers Savings Bank,
Princeton




Resources
(in
tho usan ds
o f dollars)

B anking o ffice s
In
operatio n

To be
op erated

I2

4,631

2

52

FEDERAL DEPOSIT INSURANCE CORPORATION

Sum m ary report by A ttorney General, Aprii 11, 1966
Farmers Savings Bank of Princeton, Iowa, operates a main office in Princeton
and a lim ited service office at LeClaire, Iowa, 5 miles south of Princeton. In order
to convert the LeClaire office into an institution with full banking powers, the
owners of Farmers Savings Bank have applied for permission to own and oper­
ate a state chartered bank at the facilities now occupied by the LeClaire office.
If approved, Farmers Savings Bank would transfer to the new bank approxim ately
40 percent of its assets and liabilities and continue to operate its own facilities
in Princeton with the remaining 60 percent. This percentage corresponds approx­
imately to the business now transacted at LeClaire and Princeton, respectively.
The entire capital stock of the new bank would be distributed among the stock­
holders of Farmers Savings Bank. Neither Princeton nor LeClaire has any bank­
ing facilities other than those now provided by Farmers Savings Bank. It is not
anticipated that the proposed transaction will have adverse effects on compe­
tition in the relevant service area.

Basis fo r Corporation approval, A ugust 4, 1966
The proposals would establish a new bank in LeClaire, Iowa through the acqui­
sition and assumption of a portion of the assets, liabilities, and capital accounts
of Farmers, a $4.6 m illion bank headquartered in Princeton, 5 miles north. The
proposed new bank would replace the limited service LeClaire office of Farmers
and would acquire 40 percent of Farmers’ loans and deposits, which represents
the amount estimated to originate in the LeClaire area. Following consummation
of the proposals, Farmers and the proposed new bank would be commonly
owned, controlled and managed. There are no other banks in Princeton or
LeClaire. It is apparent from the nature of the transactions that the participating
banks cannot presently be in com petition with each other and the resulting com ­
mon ownership and control precludes com petition between them in the future.
The purchase and assumption transaction would not lessen com petition or
tend to create a monopoly, nor would it be, in any other manner, in restraint of
trade. The convenience and needs of the LeClaire community would be more
adequately served through the more complete banking services to be offered by
the proposed new bank.

Case No. 21
Waccamaw Bank & Trust Company,
W hiteville, North Carolina
to merge with
The Commercial Bank of
Dunn, North Carolina,
Dunn

Resources
(in
tho usan ds
of dollars)

B anking offices
In
operation

To be
operated

49,415

20

21

8,063

1

Summary report by A tto rn e y General, May 23, 1966
The Commercial Bank, organized in 1919, operates its only office in Dunn, North
Carolina, 60 miles southeast of Durham. As of March 31, 1966, Commercial had
total assets of $8.1 m illion, total deposits of $7 m illion, net loans of $4 m illion,
and total capital accounts of $839,000.
Waccamaw Bank and Trust Company, organized in 1926, operates its home
office and three branches in W hiteville, North Carolina, 90 miles south of Dunn.
It also operates branches in 12 other small southeastern North Carolina com mu­
nities. As of March 31, 1966, Waccamaw had total assets of $49.4 m illion, total
deposits of $42.9 m illion, net loans of $30.2 million, and total capital accounts of
$5.1 million.
There appears to be no com petition between the merging banks. Their home
offices are 90 miles apart and Commercial is over 40 miles from the nearest




BANK ABSORPTIONS APPROVED BY THE CORPORATION

53

branch of Waccamaw. Thus, the proposed merger would not eliminate direct
com petition in Com m ercial’s service area and would not remove a banking alter­
native for the people residing in that area. The merger would, however, eliminate
another independent bank in North Carolina, a State where concentration of
banking resources is pronounced.

Basis fo r Corporation approval, A ugust 4, 1966
The applicant is a $49 m illion bank operating 19 branches and headquartered
in W hiteville, North Carolina. One recently established branch is located 160
miles north from the main office; the remainder of applicant’s offices serve the
southeastern portion of the State. The merging bank, Commercial, is an $8.1 m il­
lion single-office bank located in Dunn, 90 miles from W hiteville and 53 miles
from applicant’s nearest office. The service areas of the merging banks do not
overlap.
Applicant presently is more than five times the deposit size of its only com peti­
tor in W hiteville and the merger will not significantly increase the size disparity.
The resulting bank would hold $52.2 m illion in deposits. Three of its com petitors
have deposits ranging from more than $141 m illion to almost $515 m illion and a
fourth com petitor has deposits of more than $67 m illion. The latter has made
application to merge with applicant’s only com petitor in W hiteville. There would
not be a material effect on com petition in the applicant’s present overall service
area as a result of this proposal.
Commercial holds 22.3 percent of the deposits held by the banking offices in
its service area, the second largest proportion. The largest bank in C om m ercial’s
service area, and the only local com petitor in Dunn, dominates the market, its
six offices holding 54.7 percent of the area’s deposits; it is the second largest
bank in applicant’s service area. There would be no change in the five banks’
relative shares of the area’s deposits or loans as a result of the merger since
applicant presently has no office in Com m ercial’s service area. The proposal would
introduce new services at the Dunn office, including trust and farm management
services, and the resulting bank plans to establish an instalment loan departm ent
and provide drive-in facilities.
The proposed merger would not lessen com petition or tend to create a monop­
oly, nor would it be, in any other manner, in restraint of trade. The progressively
managed resulting bank with substantially larger financial resources would pro­
vide expanded and more com petitive banking services in Com m ercial’s service
area which would benefit the residents of the comm unity of Dunn and surrounding
area.

Case No. 22
The Bank of Tupelo,
Tupelo, Mississippi
(change title to Bank of M ississippi)
to merge with
Prentiss County Home Bank,
Booneville

Resources
(in
tho usan ds
o f dollars)

B anking o ffice s
In
operation

To be
operated

34,953

7

8

5,025

1

Summary report by A tto rn e y General, July 20, 1966
The Bank of Tupelo (Tupelo Bank) has assets of $35,242,751 and deposits of
$30,309,335. Two of its offices are located in Tupelo, a town of 20,000, in northeast
Mississippi. There are three banks in the community, operating a total of 10
offices in the area. Tupelo Bank has 42 percent of total deposits of banks located
there.
Prentiss County Home Bank (Prentiss Bank) has assets of $5,025,071 and
deposits of $4,528,450. Its single office is located in Booneville, a town of 3,500




FEDERAL DEPOSIT INSURANCE CORPORATION

54

which is 29 miles north of Tupelo. The only other banking office in the town is
a branch of Peoples Bank and Trust Company, the largest bank in Tupelo.
There is little com petition between the merging banks, and we therefore con­
clude that the proposed merger would not adversely affect com petition.

Basis fo r Corporation approval, A ugust 18, 1966
Tupelo Bank presently operates seven offices in six com munities located in
northeastern Mississippi embracing Lee, Itawamba and Pontotoc Counties. The
subject merger would extend its operations to the north and include entry into
Prentiss County. The subject banks are separated by 26 miles, the distance
intervening Prentiss Bank and the nearest office of Tupelo Bank, and are consid­
ered to be operating in separate trade areas. The principal com petitor of both
banks presently holds the largest proportion of IPC deposits in the overall trade
area. This competing bank is headquartered in Tupelo and has a branch operat­
ing in Booneville, the site of Prentiss Bank’s sole office.
Tupelo Bank has total resources of $35.2 million and holds 19.7 percent of
the IPC deposit volume of the banks in the trade area to be served by the result­
ing bank; by acquiring Prentiss Bank’s share of these deposits, Tupelo Bank’s
IPC deposit volume will increase to 22.5 percent. The bank presently holding the
largest proportion of these deposits has 20.5 percent.
Prentiss Bank with resources of $4.5 m illion is presently competing in the same
town with a branch of a $32.8 m illion bank. This proposal would replace Prentiss
Bank with a branch of Tupelo Bank and would offer the Booneville com m unity the
more modern services of the larger bank, including data processing, a more
diversified time deposit program and an alternate source for trust services. The
merger would also resolve internal problems which have developed from a management-ownership conflict within Prentiss Bank.
The proposed merger would not substantially lessen com petition or tend to
create a monopoly, nor would it be, in any other manner, in restraint of trade.

Case No. 23
First San Francisco Bank,
San Francisco, California
to merge with
The Bank of Trade of San Francisco,
San Francisco

Resources
(in
tho usan ds
of dollars)

In
operation

To be
operated

22,721

3

5

10,360

2

B anking offices

Summary report by A tto rn e y General, A u g ust 18, 1966
The First San Francisco Bank (hereinafter referred to as the Charter Bank) has
total assets of $22,721,000 and has its main office in downtown San Francisco,
California. The Bank of Trade (hereinafter referred to as the Merging Bank) has
total assets of $10,360,000 and also has its main office in downtown San Fran­
cisco, about 1 1/2 miles from the Charter Bank.
Both banks are located in or in close proxim ity to San F rancisco’s financial
district and compete with such huge San Francisco banks as Bank of Am erica
with over $16 billion in total resources and Wells Fargo Bank with over $4 billion
in total assets. Even after the merger, the resulting bank will be among the sm all­
est of the San Francisco commercial banks. The merger will improve the Merging
Bank’s capital and management position and the resulting bank should be a more
viable com petitive factor in San Francisco.
Therefore, in the light of the facts in this matter, it appears that the proposed
merger is not likely to have adverse com petitive effects.

Basis fo r Corporation approval, A u g ust 18, 1966
The applicant and Bank of Trade, $22.7 m illion and $10.4 m illion institutions,
respectively, are headquartered six blocks apart in downtown San Francisco,




BANK ABSORPTIONS APPROVED BY THE CORPORATION

55

California. Their operations are conducted in com petition with numerous bank
offices, including main and branch offices of the giant banks of the State. A p p li­
cant operates one other office in San Francisco and one in Pleasant Hill, 31
miles to the northeast. Bank of Trade’s only branch is located in Sacramento, 90
miles northeast of San Francisco, serving in the main the local Chinese commu­
nity much as the main office concentrates its activities in the Chinatown section
of San Francisco.
Bank of Trade has experienced serious asset problems resulting in supervisory
demands for rehabilitation of its impaired capital and a strengthening of its man­
agement. Over the past year, the management of Bank of Trade has pursued
merger negotiations with several other banks, having concluded this alternative
as the only solution to its problems.
The proposed merger by the applicant w ill resolve the serious problems con­
fronting Bank of Trade and assure continuance of its banking offices. There
would be no adverse effect on banking com petition, either in San Francisco or
Sacramento. The proposed merger would not substantially lessen com petition or
tend to create a monopoly, nor would it. in any other manner, be in restraint of
trade.

Resources
(in
tho usan ds
of dollars)

Case No. 24
South Side Bank and Trust Company,
Scranton, Pennsylvania
to merge with
The First National Bank of Moscow,
Moscow
S u m m a ry

re p o rt

by

A tto rn e y

In
op eratio n

To be
operated

25,718

1

2

4,029

1

G e n e r a l,

B anking offices

J u ly

8,

1966

This is a proposal to merge the $24 million South Side Bank, third largest of
Scranton’s eight banks, with the $3.5 m illion Moscow bank, 10 miles southeast
of Scranton.
The proposed merger would not m aterially alter the structure of banking com ­
petition generally in the areas served by the merging banks, but it would elim i­
nate the com petition which now prevails between the two institutions.

Basis fo r Corporation approval, Septem ber 8, 1966
The proposal would merge two single-office banks located 10 miles apart in
Lackawanna County, Pennsylvania. The applicant is a $25.7 m illion bank com ­
peting with nine other banks in Scranton and Dunmore located within 4 miles.
The merging National in Moscow has $4 m illion in resources and its closest
bank com petition is furnished by the two Dunmore banks, 6 miles distant. The
participating banks’ service areas overlap but there is only a minor amount of
com petition between them.
A pp licant’s IPC deposits w ill be increased by $3.5 m illion to $25.8 m illion, which
represents 9.2 percent of the aggregate held by the 17 banking offices in the
combined service area. Three of the largest bank’s nine offices hold 38.1 percent
of such deposits and the second largest bank holds 19.4 percent. The fourth
largest bank is com parable in size to the resulting bank. All the banks which
would compete with the resulting bank presently are com petitive in some degree
with the largest banks in Scranton. The increase in applicant’s size and its acqui­
sition of a branch in Moscow would have no significant adverse effect on com­
petition in either merging bank’s service area.
National has an earnings problem, a relatively small volume of loans, and does
not offer a number of services norm ally found in com m ercial banks. The pro­
gressive management of applicant would make effective use of investment funds
to improve the earnings of National and will provide a much greater lending lim it




FEDERAL DEPOSIT INSURANCE CORPORATION

56

which apparently is needed in the growing Moscow area. A dditionally, the appli­
cant w ill make available at its Moscow office trust services, all types of instalment
loans, FHA and Gl real estate loans, education loans, and other m iscellaneous
services usually found in com m ercial banks which are not presently offered by
National.
The proposed merger would not substantially lessen com petition or tend to
create a monopoly, nor would it be in any other manner in restraint of trade, and
would result in new and improved banking services available directly in Moscow.

Case No. 25
The Peoples Bank of Alpena,
Alpena, Michigan
to consolidate with
The Posen State Bank,
Posen

B anking offices

Resources
(in
tho usan ds
o f dollars)

In
o peration

To be
operated

17,512

2

3

2,671

1

Sum m ary report by A tto rn e y General, July 21, 1966
The only office of Posen State Bank in Posen, Michigan, is located approxi­
mately 23 miles northwest of the head office of Peoples State Bank in Alpena,
Michigan, and about 30 miles north of Peoples Bank’s only branch office in
Ossineke, Michigan. The service areas of the two banks overlap slightly north­
west of Alpena and southeast of Posen, but less than 1 percent of the deposits
and loans of the two banks are derived from each other’s service area.
It is not anticipated that the proposed merger will adversely affect comm ercial
banking com petition in the resulting service area.

Basis fo r Corporation approval, Septem ber 22, 1966
The applicant, headquartered in Alpena, Michigan, has $17.5 m illion in re­
sources and a branch in Ossineke, 12 miles from the main office. It would acquire
the sole office of a $2.7 m illion bank in Posen, 23 miles from Alpena. The service
areas of the participating banks’ closest office locations, Alpena and Posen,
overlap to a small degree and there is only a negligible amount of com petition
between the two banks.
The ap plican t’s principal com petitor has three offices in Alpena and two others
in the applicant’s service area, and holds a dominant position in the combined
service area with 50.2 percent of the aggregate IPC deposits owned by the five
banks. Posen Bank’s closest com petition is furnished by a bank more than three
times its IPC deposit size located at the fringe of its service area, 15 miles away.
The applicant would increase its proportion of the aggregate IPC deposits from
26.2 percent to 30.8 percent and would remain significantly sm aller than the
area’s largest bank. The increased size of the applicant would have very little
effect on com petition in its present service area and the merger may increase
com petition to some degree in the area served by Posen Bank.
Posen Bank is a small bank conducting relatively lim ited banking services
whose history discloses little growth. Earnings are low and the bank’s elderly
management desires to retire. The applicant would bring to the Posen area all
types of instalment loans and other banking services not now offered by Posen
Bank and will eventually provide trust services to the area.
The proposed merger would not substantially lessen com petition or tend to
create a monopoly, nor would it be, in any other manner, in restraint of trade.




BANK ABSORPTIONS APPROVED BY THE CORPORATION

Resources

B anking offices

(in

Case No. 26

tho usan ds
o f dollars)

re p o rt

by

A tto rn e y

In
operation

To be
operated

13,994

3

8

13,398

Central Bank and Trust Company,
Broadway, North Carolina
(change title to The Carolina Bank
and move main office to 145 W. Main
St., Jonesboro Heights, Sanford)
to merge with
The Carolina Bank,
Pinehurst
S u m m a ry

57

5

G e n e r a l,

A ugust

2,

1966

The Central Bank and Trust Company, with deposits of $12,263,000, proposes
to merge with The Carolina Bank, with deposits of $12,663,000. The banks, lo­
cated near Raleigh, North Carolina, are 28 miles apart and their service areas
overlap slightly. Both service areas are characterized by a high level of concen­
tration in com mercial banking.
The high level of concentration in these areas suggests the importance of each
of the merging banks as a potential com petitor in the service area of the other.
The proposed merger would eliminate actual and potential com petition between
the applicant banks.

Basis fo r Corporation

a p p r o v a l,

Septem ber 29, 1966

Central Bank and Trust Company, the applicant, operates three offices; one in
Broadway, two in Sanford, and all in Lee County, which is situated in the central
portion of North Carolina. The subject merger would extend its operations to the
southwest by the acquisition of Carolina Bank’s five offices located in as many
comm unities situated in Moore County. The participating banks, which are ap­
proxim ately the same size, operate in separate service areas, although there is
a small degree of overlap and com petition in the area intervening their closest
offices. The nearest of these offices are 18 miles apart. The proposed merger
would not substantially lessen com petition, actual or potential, nor would it tend
to create a monopoly or in any other manner be in restraint of trade.
The bank resulting from the merger would be only one-third as large as its
principal com petitor, which operates 10 offices in the service area. Additional
banking alternatives are afforded by 15 offices of 11 other banks. The combined
banks with a greater legal lending capacity would be better able to meet the
credit needs of a growing economy, particularly in the Sanford area. The pro­
posal would also extend to the communities presently served by Carolina Bank
an alternate source for trust services now being offered by two com peting banks.

Resources
(in
tho usan ds
o f dollars)

Case No. 27
American Bank and Trust Co. of Pa.,
Reading, Pennsylvania
to merge with
The Tamaqua National Bank,
Tamaqua
S u m m a ry

re p o rt

by

A tto rn e y

In
operation

To be
operated

267,592

15

16

10,668

1

G e n e r a l,

Banking offices

M ay

31 ,

1966

American Bank and Trust Co. of Pa., form erly the Berks County Trust Company,
is the largest bank in Berks County and six adjacent counties which together
constitute the area the applicant claims the resulting bank will serve. American
operates 15 offices in Berks, Lancaster and Schuylkill Counties. In its present




FEDERAL DEPOSIT INSURANCE CORPORATION

58

form, American is the product of 11 previous mergers and consolidations, six
since 1953, in which 12 form erly independent area banks have been absorbed.
The Tamaqua National Bank, Tamaqua, Pennsylvania, was organized in 1904.
The town of Tamaqua with a population of 10,173 is located in northeastern
Schuylkill County, adjacent to Berks County. It operates just one office in that
city.
The area within a 7-mile radius of Tamaqua is served by four banks, including
the Tamaqua National Bank and the Coaldale branch of American Bank and Trust
Company. The proposed merger would elim inate all com petition between these
two banks and would reduce from four to three the number of banking alterna­
tives in the Tamaqua area.

Basis fo r Corporation approval, O ctober 6, 1966
Applicant is headquartered in Reading, Pennsylvania, 40 miles from the sole
office of Tamaqua Bank which it would acquire by the proposed merger. A p p li­
cant has 12 offices in Berks County, one branch in Lancaster County and two
branches in Schuylkill County. Tamaqua Bank is about 31 miles from applicant’s
/2
Coaldale branch. A survey of deposits and loans at the Coaldale branch and the
Tamaqua Bank indicates each derives an insignificant amount of business from
the other’s service area. Tamaqua Bank’s primary com petition is furnished by two
other banks in Tamaqua. All other offices of the applicant are located at much
greater distances from Tamaqua and numerous competing banks intervene. There
is very little com petition between the merging banks which would be eliminated
by the merger.
The service area of the resulting bank would include Berks, Schuylkill, and
Lancaster Counties as well as portions of four contiguous counties in which
applicant is authorized to establish branches under State law and a small portion
of Carbon County near Coaldale. A pplicant is the largest bank headquartered in
this area, but only a moderate increase in its resources would result from the
merger and the proportion of deposits to be held by the resulting bank would
not be excessive.
The progressive, well-managed applicant bank has an outstanding record of
service to its community, particularly in providing financial and other support for
industrial diversification and expansion. The merger should have far-reaching
benefits in Tamaqua, a depressed area since the decline of the coal industry.
The applicant has the desire and the resources to assist the Tamaqua area in
its efforts to improve its economy and the welfare of its people. The resulting
bank would provide more complete banking and fiduciary services to the Tama­
qua area, including electronic data processing, a much larger lending limit, and
a full line of consumer credit and personal loan financing.
The econom ically depressed Tamaqua community would derive distinct benefits
from the proposed merger which would not substantially lessen com petition, or
tend to create monopoly, and would not, in any other manner, be in restraint of
trade.

Case No. 28
First State Bank in Tuscola,
Tuscola, Texas
(proposed new bank)
to acquire the assets and assume
the liabilitie s of
First State Bank of Tuscola,
Tuscola

Resources
(in
tho usan ds
o f dollars)

B anking office s
In
op eratio n

To be
op erated

1

3,410

1

Approved under emergency provisions. No report requested from the Attorney
General.




BANK ABSORPTIONS APPROVED BY THE CORPORATION

59

Basis fo r Corporation approval, O ctober 12, 1966
Loans and other losses exceed the bank’s total capital. Directors were unable
to rehabilitate the capital structure and this proposal has been form ulated to pre­
vent an ultimate closing of the existing bank which has been serving the com m u­
nity since 1912. There is no other bank in Tuscola and the nearest alternative
banking offices are 18 miles distant. Therefore, the Corporation deems it in the
public interest to facilitate the assumption of deposits and purchase of acceptable
assets of the bank by a proposed new bank and thereby continue uninterrupted
banking services in the com m unity of Tuscola.

Case No. 29
Industrial Valley Bank and
Trust Company,
Jenkintown, Pennsylvania
to merge with
The Security Trust Company of
Pottstown, Pa.,
Pottstown

Resources
(in
tho usan ds
o f dollars)

B anking o ffice s
In
op eratio n

To be
operated

203,446

23

26

28,796

3

Summary report by A tto rn e y General, Septem ber 15, 1966
Industrial Valley Bank and Trust Company, headquartered in a suburb just
north of Philadelphia, has assets of close to $200 m illion and operates 23 offices,
most of which are located in Philadelphia County and Montgomery County. It is
the resulting bank of a merger in 1961 between Jenkintown Trust Company and
Industrial Trust Company of Philadelphia. Since this merger was consummated,
Industrial Valley Bank and Trust has acquired four independent banks, three
located in Chester County and the other in Montgomery County.
The head offices of the merging banks are approxim ately 30 miles apart. The
branches of Industrial Valley Bank and Trust Company closest to Pottstown are
the branches located in Royersford, East Greenville, and Phoenixville, 10, 13, and
16 miles from Pottstown, respectively.
Although the applicants claim that there is “ no known du plicatio n” of deposit
accounts between the participating banks and that there is no evidence of de­
posits or loans originated by either bank in the service area of the other, it
appears that these offices are sufficiently close to Pottstown to provide alternative
sources of banking services to customers located in this area. This com petition
would, of course, be elim inated by the proposed merger. Moreover, the merger
would elim inate Industrial as a potential com petitor, via the establishm ent of a
de novo branch, in the Pottstown area.

Basis fo r Corporation approval, November 3, 1966
The applicant operates its main office and seven branches in Montgomery
County, Pennsylvania, 10 branches in Philadelphia County, four branches in
Chester County, and derives the major portion of its business from the areas
served in these three counties. In addition, it has one branch in Delaware
County. Applicant, with $141.8 m illion in IPC deposits, competes at various
locations with seven com m ercial banks each of which has IPC deposits exceeding
$284 million, and four mutual savings banks each of which has IPC deposits
exceeding $257 million. The largest comm ercial bank com petitor has IPC deposits
exceeding $1 billion and the largest mutual savings bank has IPC deposits
exceeding $1.6 billion. A pp licant’s acquisition of the $24.6 m illion IPC deposits
owned by Security would have no significant effect on com petition in the areas
presently served by the applicant.
Security is headquartered in Pottstown about 30 miles northwest from Jenkin­
town, the headquarters of the applicant. The primary com petition for Security




FEDERAL DEPOSIT INSURANCE CORPORATION

60

comes from two large banks already in com petition with the applicant at other
locations. These banks are Continental Bank and Trust Company, Norristown,
with IPC deposits exceeding $305 million, and Philadelphia National Bank with
IPC deposits exceeding $935 million. Continental Bank and Trust Company has
two branches in Pottstown and one branch 2 miles distant; Philadelphia National
Bank has two branches in Pottstown. The applicant’s closest branch is located
at Royersford, 7 miles southeast of Pottstown. It receives com petition from two
branches of Continental Bank and Trust Company located at Spring City which
is across the Schuylkill River from Royersford, less than 1 mile away. Neither
merging bank is reported to have a significant volume of busines which originates
in the other’s service area and the two merging banks do not compete with each
other in a material degree. The significant change in the Pottstown area would
be the introduction of a much larger bank in terms of total IPC deposits ($166.4
million) which would compete more effectively with the two large banks presently
operating there. The proposal would enhance existing com petition in the Potts­
town area.
In addition to providing a solution for the declining earnings problem of Secu­
rity, the proposal would provide a substantially greater legal lending lim it and
com puter services at the Pottstown offices. Business from a number of companies
has been lost by Security to other larger banks because of its small legal lending
lim it and lack of com puterized services. The resulting bank would provide Potts­
town offices with the ability to offer a variety of new and many greatly expanded
banking services, including broader trust adm inistration, consum er instalment
loans, construction loans, mortgage servicing, accounts receivable and warehouse
loans, and the services of its com puter for a variety of customer service require­
ments as well as for public agencies and industry. In addition, active management
of Security is without succession and the proposal would provide an adequate
depth of satisfactory management for the Pottstown offices.
Security cannot now effectively compete with the very large banks in its imme­
diate area and any potential com petition stemming from applicant’s legal ability
to establish a de novo branch in Pottstown is considered to be minimal.
The proposal would not eliminate a substantial amount of com petition, either
actual or potential, and does not involve any tendency toward monopoly or
restraint of trade.

Case No. 30
The First State Bank,
Guthrie, Oklahoma
to acquire the assets and assume
the liabilitie s of
The State Bank of Meridian,
Meridian

Resources
(in
tho usan ds
o f dollars)

In
op eration

To be
operated

6,424

1

1

120

1

B anking offices

Summary report by A tto rn e y General, A ugust 1, 1966
The First State Bank (hereinafter referred to as the Charter Bank) has total
assets of $6,424,859 and is located in the town of Guthrie, Oklahoma, a com m u­
nity of 10,000 population located about 20 miles north of Oklahoma City. The
State Bank of Meridian (hereinafter referred to as the Acquired Bank) has total
assets of $122,949 and is located in Meridian, a town with a population of 160
located 12 miles east of Guthrie. Both banks were established in 1902 and neither
has a previous merger history.
On the basis of the size and service capacity of the Acquired Bank and the
existing geographical and population factors in the area, the removal of the
Acquired Bank’s business to Guthrie and the closing of the Meridian office should
not significantly affect the existing patterns of banking and banking com petition
in the area.




BANK ABSORPTIONS APPROVED BY THE CORPORATION

61

It therefore does not appear that the proposed acquisition is likely to have
adverse com petitive effects.

Basis fo r Corporation approval, Novem ber 3, 1966
With assets totaling $119,900, Bank of Meridian, organized in 1902, is the
smallest bank in Oklahoma, located in a declining com munity containing a popu­
lation of 160. Over the last five years the bank’s net current operating earnings
have averaged less than $500. Its insurer does not wish to continue fidelity cov­
erage. Shortly after the death of the bank’s ow ner-operator in February, 1966, the
heirs sold control to the managing officer of First State and he now serves as
president and chairman of the board of Bank of Meridian. His fam ily owns the
m ajority of the stock of First State.
The new ownership has concluded Bank of Meridian is an uneconomic unit
and requests consent for First State to purchase its assets and assume its lia b il­
ities, elim inating in the process M eridian’s only banking office because of the
State prohibition of branch banking. Guthrie is 12 miles distant but there is a
good highway between the two communities. Besides First State, total resources
$6.4 million, Guthrie dom iciles one other bank, a national institution with total
resources of $10.1 m illion. The assumption by First State of Bank of M eridian’s
deposits of less than $100,000 would have no effect on bank com petition in
Guthrie or the overall service area.
The proposed transaction would not substantially lessen com petition or tend to
create a monopoly, nor would it, in any other manner, be in restraint of trade.

Case No. 31
Farmers State Bank,
Valparaiso, Indiana
(change title to Northern Indiana
Bank and T rust Company)
to merge with
The Kouts State Bank,
Kouts

Resources
(in
tho usan ds
of dollars)

In
operation

To be
operated

23,793

3

4

3,676

1

B anking offices

Sum m ary report by A tto rn e y General, Novem ber 9, 1966
Farmers State Bank, originally chartered in 1874, had, as of August 31, 1966,
assets of $23,680,000, loans and discounts of $12,225,000, deposits of $21,450,000,
and capital accounts of $1,713,000. Its past 10-year history shows no mergers or
consolidations.
Kouts State Bank was chartered in 1945 and has no history of mergers or con­
solidations. It had, as of August 31, 1966, assets of $3,309,000, loans and dis­
counts of $1,937,000, deposits of $3,013,000, and capital accounts of $269,000.
Despite some lim ited degree of com petitive overlap, the two banks serve
largely distinct and separate areas. The merger is therefore not likely to have
substantial effect on banking com petition in the areas served by these banks.

Basis fo r Corporation approval, December 1, 1966
The applicant, a $23.8 m illion bank headquartered in Valparaiso, Indiana and
serving the central and northern portion of Porter County which is becoming
increasingly industrialized, proposes to merge a $3.7 m illion bank serving the
basically agricultural comm unity of Kouts, 13 miles south from Valparaiso. The
merging banks’ service areas overlap to a small degree but they serve essentially
separate geographic and econom ic areas. Competition between the merging
banks which would be eliminated by the proposed merger is not substantial.
The applicant and its principal com petitor, which is also headquartered in
Valparaiso, are equally matched from a com petitive standpoint in terms of IPC




FEDERAL DEPOSIT INSURANCE CORPORATION

62

deposits owned. A pplicant would move from its narrowly-m argined second
position to that of largest bank in the overall service area and would hold 25.7
percent of the aggregate IPC deposits owned by the banking offices com peting in
the resulting bank’s service area. The increase in applicant’s size is not sufficient
to significantly change the com petitive situation in Valparaiso or the overall
service area; the other Valparaiso headquartered bank holds 22.9 percent of the
aggregate IPC deposits and the third largest bank holds 15.4 percent.
Porter County is presently undergoing a rapid industrial and residential develop­
ment, especially in the northern sector. The present and anticipated growth of
the County indicates a need for expanded banking services and the resulting
bank with its offices in the northern, central and southern part of the County
could meet the varied needs of the industrial, residential and agricultural sectors
of the area. The increased lending limit of the resulting bank would place it in a
better position than either of the merging banks to meet the credit needs of the
farmers, businesses and industries. The present and potential customers of
Kouts Bank would be provided with full trust services, outside farm representa­
tion, a complete instalment loan department and higher education loans. The
Kouts Bank would be afforded the advantages of more advanced bookkeeping
techniques, a public relations and advertising department and a full-tim e auditor.
The proposed merger would provide improved and enlarged banking services
to the econom ically expanding community of Porter County and does not involve
a substantial lessening of com petition, restraint of trade or tendency toward
monopoly.

Case No. 32
Kings County Lafayette Trust Company,

Resources
(in
tho usan ds
of dollars)

B anking office s
In
op eratio n

To be
o p e ra te d

196,293

10

10

B ro o k ly n , N e w Y o rk

to merge with
Lafayette Safe Deposit Company,
Brooklyn

1,789

Summary report by A tto rn e y General, O ctober 11, 1966
Kings County Lafayette Trust Company proposes to merge into it Lafayette
Safe Deposit Company, its subsidiary, which is engaged in the business of renting
vaults and safe deposit boxes. The proposed transaction would have no effect
on competition.

Basis fo r Corporation approval, December 1, 1966
A pplicant owns all except six shares of Lafayette Safe Deposit Company which
conducts business only in leased portions of six branches of the applicant. All
officers of the Safe Deposit Company are also officers and employees of the
applicant. The purpose of the merger is to sim plify adm inistration and to effect
economies. The safe deposit facilities will be continued by the applicant follow ing
the consummation of the merger.
The proposed merger would have no effect on com petition and the banking
factors are determined to be favorable to the proposal.

Case No. 33
Farmers Bank of the State of Delaware,
Dover, Delaware
to merge with
West Dover Trust Company,
 Hartly



B anking offices

Resources
(in
tho usan ds
of dollars)

In
operation

To be
operated

224,628

18

19

1,036

1

BANK ABSORPTIONS APPROVED BY THE CORPORATION

63

Sum m ary report by A tto rn e y General, O ctober 21, 1966
Farmers Bank of the State of Delaware, Dover, Delaware, had, as of May 31,
1966, total assets of $224,628,000, loans and discounts of $78,229,000, and
deposits of $205,318,000. Capital accounts were $14,807,000. Since 1956, Farmers
has acquired four other banks, three by merger and one by purchase.
West Dover Trust Company, Hartly, Delaware, as of May 31, 1966, held assets
of $1,036,000, loans and discounts of $572,000, and deposits of $906,000. Capital
accounts totaled $123,000.
Some com petition between the two banks is thought to be present, and this will
be eliminated by the proposed merger. However, in view of West Dover’s very
small size and lack of significant growth since its organization, it is not believed
that this merger w ill adversely affect the structure of banking in the area.

Basis fo r Corporation approval, December 1, 1966
The applicant, which is headquartered in Dover, Delaware and operates 18
offices throughout the State, proposes to merge a bank in Hartly, 11 miles west
from Dover. Applicant was chartered by an Act of the State legislature in 1807;
the State is the bank’s major stockholder with 49 percent of the outstanding
stock and is represented in applicant’s management by nine of the bank’s 27
directors. Applicant has $224.6 m illion total resources and is the sole depository
for State funds which comprise about one-half the bank’s total deposits. Hartly
Bank, the smallest in the State, was organized in 1915, does not operate branches
and has little more than $1 m illion in total resources. It is a conservatively
operated bank which grants no consumer instalment loans, confines its lending
function almost entirely to real estate mortgages and its service area prim arily to
its own community. There is a minimal amount of com petition existing between
the merging banks and the probability for effective com petition between them in
the future is remote.
A pplicant is the fourth largest commercial bank in the State in terms of IPC
deposits owned; it holds 12.9 percent of the commercial bank IPC deposits
owned by the 20 banks in the State. The largest bank, W ilm ington Trust Company,
holds 39.2 percent. The merger would increase applicant’s IPC deposits by less
than $1 million, or 0.1 percent of the aggregate, and would have a negligible
effect on com petition on a statewide basis.
There are 12 com m ercial bank offices within a radius of 12 miles from Hartly.
These include the Dover and Smyrna offices of the applicant which are its closest
offices to Hartly Bank, 11 miles distant. All competing bank offices are much
closer to an office of the applicant than to Hartly Bank. The closest banking
location to Hartly Bank is 9 miles, whereas, except for the Sudlersville bank in
Maryland, all these banking offices are 2 miles or less from the nearest office of
the applicant. The applicant’s Dover and Smyrna offices hold 33.8 percent of the
aggregate IPC deposits owned by the 12 comm ercial banking offices in this area
and the proposal would increase this proportion to 35.2 percent. The Bank of
Delaware, headquartered in W ilm ington, has two branches in this area holding
21.4 percent, the second largest proportion. The two small independent banks
located at Clayton and Wyoming are already in close com petition with offices of
the applicant or offices of other much larger banks. The small increase in appli­
cant’s IPC deposit volume in this area and its establishm ent of a branch in
Hartly would not significantly alter the com petitive situation in the Hartly-Dover
area.
Hartly Bank’s small lending lim it of $12,100 is inadequate to meet the needs of
its community. In addition to providing a much larger lending limit, the resulting
bank will make available at the Hartly office consumer credit facilities, time
certificates of deposit and trust departm ent services, none of which are presently
available at Hartly Bank.
The convenience and needs of the Hartly area will benefit from the proposed
merger which will not involve a substantial lessening of com petition, existing or
potential, tend to create a m onopoly nor be in restraint of trade.




FEDERAL DEPOSIT INSURANCE CORPORATION

64

Case No. 34
South Oak Cliff State Bank,
Dallas, Texas
to merge with
National Bank of Oak Cliff in Dallas,
Dallas

Resources
(in
tho usan ds
o f dollars)

In
o peration

To be
op erated

16,329

1

1

3,756

1

B anking offices

Summary report by A tto rn e y General, December 5, 1966
The National Bank of Oak Cliff, a suburb of Dallas, Texas, was organized in
1964. As of September 7, 1966, National had total assets of $3,922,000 and total
net loans and discounts of $2,627,000. The South Oak Cliff State Bank, organized
in 1942, is also a unit bank located in Oak Cliff, approxim ately 2 miles from the
National Bank. As of September 7, 1966 State Bank had total assets of $17,107,000
and total net loans and discounts of $10,229,000.
National Bank and State Bank are the two smallest banks in their service area
and, even follow ing merger, w ill remain substantially smaller than the three other
banks in the area. Also, both banks have common management.
It is unlikely, therefore, that the merger would have an adverse effect on
com petition.

Basis fo r Corporation approval, December 22, 1966
The applicant is an old and established $16.3 m illion bank which has suffered
heavy losses and presently is under-capitalized. It proposes to merge a relatively
new national bank organized in 1964 which has resources of $3.8 m illion.
Neither the area nor the national bank has grown as anticipated and N ational’s
future prospects for earnings and deposit growth are unfavorable. The merging
banks’ offices are 2 miles apart but a large portion of the business held by
National is derived from outside both banks’ prim ary service area; furthermore,
the banks have been commonly owned and commonly managed to a major
degree since January 1966. There is virtually no com petition between the p a rtici­
pating banks which would be elim inated by the proposal.
Oak Cliff, part of greater Dallas which is located south of the T rinity River,
is the prim ary service area of both banks. The three largest of nine banks offering
com petition in this area are within 2 miles of the applicant. A pp licant’s IPC
deposits w ill be increased by $ 2.2 m illion and the resulting bank would hold
$15.2 m illion of such deposits. This increase would have little com petitive
significance in the prim ary service area where the three largest banks are the
a pplicant’s closest com petitors and hold IPC deposits of $53.7 m illion, $24.2
m illion and $20.1 million.
The office of the national bank would be elim inated under the proposal in
conformance with the State banking laws. However, it serves a relatively lim ited
number of customers who could not easily be served by the resulting bank or
one of the other three banks in the immediate area. The econom ic trend in the
area is not favorable, a large portion of the newer national bank’s business comes
from outside the service area and there does not appear to be sufficient local
business to justify a need for two banks in this area. National bank has a
favorable capital position which will bring some degree of strength to the under­
capitalized applicant bank and the business of the two banks could be handled
more econom ically, efficiently and effectively in one office.
The proposed merger would not substantially lessen com petition, tend to
create a monopoly nor in any other manner be in restraint of trade.




BANK ABSORPTIONS APPROVED BY THE CORPORATION

Case No. 35
American Bank and Trust Co. of Pa.,
Reading, Pennsylvania
to merge with
Columbia Trust Co.,
Columbia

65

B anking offices

Resources
(in
tho usan ds
of dollars)

In
op eratio n

To be
operated

28 9,09 4

16

17

6,204

1

Summary report by A tto rn e y General, Septem ber 15, 1966
American Bank and Trust Co. of Pa. (“ A m erican” ), form erly the Berks County
Trust Company, is the largest bank in Berks County and six adjacent counties,
which together constitute the area which American claims the resulting bank will
serve. As of June 30, 1966, Am erican had assets of $278,048,000 and deposits of
$245,836,000. The Colum bia Trust Co., Columbia, Pennsylvania (“ Colum bia” ), a
unit bank, as of June 30, 1966 had assets of $6,204,000 and deposits of $5,239,000.
There is little, if any, com petition between American and Columbia as the
nearest branch of American is approxim ately 35 miles from the Colum bia bank.
If the service area of American is considered to be the area from which it
derives 75 percent or more of its deposits, then the addition of C olum bia’s assets
to those of American would increase Am erican’s share of this market by less
than one-half of 1 percent, measured either by “ IPC” demand deposits, “ IPC”
time deposits or by total loans and discounts. At the present time, American has
approximately 19 percent of IPC demand deposits, 21 percent of IPC time deposits
and 24 percent of the loans and discounts in this service area. However, the
merger would elim inate American as a potential com petitor, via the establish­
ment of a de novo branch, in Colum bia’s service area.

Basis fo r Corporation approval, December 22, 1966
Applicant is headquartered in Reading, Berks County, Pennsylvania, 43 miles
from the sole office of Colum bia Trust Co., Columbia, Pennsylvania, which it
would acquire by the proposed merger. Applicant has 12 offices in Reading and
environs, one branch at Reamstown in Lancaster County, and three branches in
Schuylkill County. Colum bia is 28 miles from applicant’s Reamstown branch. All
other offices of the applicant are located at greater distances from Columbia and
numerous competing banks intervene. Because of this there is little if any com pe­
tition between the merging banks. The Trust Co., moreover, is unlikely to be a
significant com petitor in the future. Its condition is only fair, it lacks management
succession, and it faces aggressive com petition from far larger banks which
have entered or are seeking to enter the Columbia area, displacing the small
unit banks which form erly were Trust Co.’s competitors.
The resulting bank would compete in Berks, Schuylkill, and Lancaster Counties,
a small portion of Carbon County, and part of York County across the Susque­
hanna River from Columbia. W hile it would be the largest bank in its service area,
only a very small increase in its resources would result from this merger. Among
the many banks with which it w ill compete are several with substantial resources.
Applicant is a progressive, well-managed bank with favorable financial history
and a good record of service to its communities, particularly in providing loans
for industrial expansion. The merger should stim ulate com petition among banks
of comparable size and ability. It will benefit the Columbia area, which requires
assistance to improve its economy, by fulfillin g needs for large amounts of credit
and by providing banking and fiduciary services to an extent not heretofore avail­
able, including electronic data processing facilities.
There is nothing to indicate that applicant would be interested in de novo
penetration of Columbia, or that it could show the city needed a fourth bank, as
would be required.
The merger would not substantially lessen com petition, tend to create
monopoly, nor in any other manner be in restraint of trade.




FEDERAL DEPOSIT INSURANCE CORPORATION

66

Case No. 36
The Western Security Bank,
Sandusky, Ohio
to acquire assets and assume
lia b ility to pay deposits of
The Peoples Savings Association,
Sandusky

Resources
(in
tho usan ds
of dollars)

In
operation

23,506

2

11,401

2

B anking offices
To be
operated
44

Summary report by A tto rn e y General, November 30, 1966
This is a proposal by the smallest of Sandusky’s three com m ercial banks to
acquire the assets and assume the liabilities of the larger of that c ity ’s two
savings and loan institutions.
Peoples Savings now offers only mortgage loan and savings deposit services;
these services are also offered by Western Security. The offices of the two
institutions are in close proxim ity in downtown Sandusky. Thus, the proposed
merger would elim inate all com petition between the merging banks with respect
to mortgage loan and savings deposit services and would substantially increase
the existing level of concentration in these markets.
Although the merging banks presently are under a degree of common direction
and ownership, the proposed merger would elim inate permanently both present
and future com petition between them.

Basis fo r Corporation approval, December 22, 1966
The smallest com m ercial bank in Sandusky, Ohio, with less than $20 m illion
IPC deposits, proposes to purchase the assets and assume the liabilities of
Association, the larger of two savings and loan institutions in Sandusky, which
has $10.7 m illion IPC deposits. Each institution operates one branch which is
located in the city. The basically different nature of the institutions’ operations
limits com petition between them to real estate mortgage loans and savings funds.
The com petition existing between the participating institutions for these services,
which constitute only two of the many and varied types of loans, deposit and
other commercial bank services offered by the applicant, is not substantial
relative to the total com petition existing within Sandusky and Erie County. Further­
more, any com petition between the participants for these services would be
tempered by the substantial common ownership, the common management and
harmonious relationship between them.
The increase in applican t’s size would be relatively large but the com petitive
balance in Sandusky and Erie County would not be adversely altered. The ap pli­
cant would be placed on an equitable footing with the other two com m ercial
banks in Sandusky with respect to size as well as legal lending limits. Neither
of the institutions involved, because of the lack of both size and adequate lending
lim it on the part of applicant and because of restricted services offered by the
Association, are in a favorable position to compete for and obtain an equitable
share of the new business being generated in the industrially expanding area.
The numerous additional services of a com m ercial bank would become conveni­
ently available at Association’s offices. The customers of Association and other
residents of the area who prefer to deal with a savings and loan association
would continue to be served by one such institution in Sandusky. The resulting
bank intends to exercise trust powers which would be a convenience to the
comm unity since no bank in Erie County presently offers fiduciary services.
The proposal would resolve the unimpressive future prospects for growth and
earnings of the Association and stimulate com m ercial bank com petition. The
merger would not substantially lessen com petition, tend to create a monopoly nor
in any other manner be in restraint of trade.




67

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Resources
(in
tho usan ds
of dollars)

Case No. 37
The Bank of New
New York, New
to merge with
The Fifth Avenue
Deposit Vaults,
New York

York,
York
Bank Safe
Inc.,

In
op eratio n

To be
op erated

1,273,159

8

8

B anking office s

303

Summary report by A tto rn e y General, Novem ber 30, 1966
The Bank of New York proposes to merge into it its subsidiary, The Fifth Avenue
Bank Safe Deposit Vaults, Inc., which is engaged in the business of renting vaults
and safe deposit boxes. The purpose of the merger is to sim plify adm inistration
and the proposed transaction would have no effect on com petition.

Basis fo r Corporation approval, December 29, 1966
The Fifth Avenue Bank Safe Deposit Vaults, Inc. is wholly-owned by The Bank
of New York except for d irectors’ qualifying shares. It is engaged solely in a safe­
keeping and safe deposit box rental business on the bank’s premises; all its
officers are also officers of the bank.
The objective of the proposed merger of the two is to sim plify adm inistration
and perm it greater efficiency and economy of operation. Consummation of the
merger would have no effect on com petition nor would it affect the condition of
the bank or its future prospects.
The proposed merger would not lessen com petition, tend to create a monopoly
nor in any manner be in restraint of trade.
1 Office of merged company expected to be closed after transfer of trust operations to main
office.
2 Site of present LeClaire office of Farmers Savings Bank.
3 Safe deposit company occupied leased portions of six of applicant’s offices, which will be
continued.
4 Includes one office expected to be closed within six months after completion of purchase
transaction.










LEGISLATION
AND REGULATIONS

PART T W O




71

FEDERAL BANKING LEGISLATION— 1966
Public Law 89-356
89th Congress, S. 1698
February 21, 1966

AN ACT
To establish a procedure for the review of proposed bank mergers so as to eliminate
the necessity for the dissolution of merged banks, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States
of America in Congress assembled, That (a) section 18(c) of the Federal Deposit
Insurance Act (12 U.S.C. 1828(c)) is amended to read:
“ (c)(1) Except with the prior written approval of the responsible agency, which
shall in every case referred to in this paragraph be the Corporation, no insured
bank shall—
“ (A) merge or consolidate with any noninsured bank or institution;
“ (B) assume liability to pay any deposits made in, or sim ilar liabilities of, any
noninsured bank or institution;
“ (C) transfer assets to any noninsured bank or institution in consideration of
the assumption of liabilities for any portion of the deposits made in such insured
bank.
“ (2) No insured bank shall merge or consolidate with any other insured bank
or, either directly or indirectly, acquire the assets of, or assume liability to pay
any deposits made in, any other insured bank except with the prior written
approval of the responsible agency, which shall be—
“ (A) the Com ptroller of the Currency if the acquiring, assuming, or resulting
bank is to be a national bank or a District bank;
“ (B) the Board of Governors of the Federal Reserve System if the acquiring,
assuming, or resulting bank is to be a State member bank (except a District
bank);
“ (C) the Corporation if the acquiring, assuming, or resulting bank is to be
a nonmember insured bank (except a D istrict bank).
“ (3) Notice of any proposed transaction for which approval is required under
paragraph (1) or (2) (referred to hereafter in this subsection as a ‘merger trans­
action’) shall, unless the responsible agency finds that it must act immediately in
order to prevent the probable failure of one of the banks involved, be published'—
“ (A) prior to the granting of approval of such transaction,
“ (B) in a form approved by the responsible agency,
“ (C) at appropriate intervals during a period at least as long as the period
allowed for furnishing reports under paragraph (4) of this subsection, and
“ (D) in a newspaper of general circulation in the community or communities
where the main offices of the banks involved are located, or, if there is no such
newspaper in any such community, then in the newspaper of general circulation
published nearest thereto.
“ (4) In the interests of uniform standards, before acting on any application for
approval of a merger transaction, the responsible agency, unless it finds that it
must act immediately in order to prevent the probable failure of one of the banks
involved, shall request reports on the com petitive factors involved from the A tto r­




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FEDERAL DEPOSIT INSURANCE CORPORATION

ney General and the other two banking agencies referred to in this subsection.
The reports shall be furnished within thirty calendar days of the date on which
they are requested, or within ten calendar days of such date if the requesting
agency advises the Attorney General and the other two banking agencies that an
emergency exists requiring expeditious action.
“ (5) The responsible agency shall not approve—
“ (A) any proposed merger transaction which would result in a monopoly, or
which would be in furtherance of any com bination or conspiracy to monopolize
or to attempt to monopolize the business of banking in any part of the United
States, or
“ (B) any other proposed merger transaction whose effect in any section of
the country may be substantially to lessen com petition, or to tend to create a
monopoly, or which in any other manner would be in restraint of trade, unless
it finds that the anticom petitive effects of the proposed transaction are clearly
outweighed in the public interest by the probable effect of the transaction in
meeting the convenience and needs of the community to be served.
In every case, the responsible agency shall take into consideration the financial
and managerial resources and future prospects of the existing and proposed insti­
tutions, and the convenience and needs of the com munity to be served.
“ (6) The responsible agency shall immediately notify the Attorney General of
any approval by it pursuant to this subsection of a proposed merger transaction.
If the agency has found that it must act immediately to prevent the probable failure
of one of the banks involved and reports on the com petitive factors have been
dispensed with, the transaction may be consummated immediately upon approval
by the agency. If the agency has advised the Attorney General and the other two
banking agencies of the existence of an emergency requiring expeditious action
and has requested reports on the com petitive factors within ten days, the trans­
action may not be consummated before the fifth calendar day after the date of
approval by the agency. In all other cases, the transaction may not be consum­
mated before the thirtieth calendar day after the date of approval by the agency.
“ (7) (A) Any action brought under the antitrust laws arising out of a merger
transaction shall be commenced prior to the earliest time under paragraph (6)
at which a merger transaction approved under paragraph (5) might be consum­
mated. The commencement of such an action shall stay the effectiveness of the
agency’s approval unless the court shall otherwise specifically order. In any such
action, the court shall review de novo the issues presented.
“ (B) In any judicial proceeding attacking a merger transaction approved under
paragraph (5) on the ground that the merger transaction alone and of itself con­
stituted a violation of any antitrust laws other than section 2 of the Act of July 2,
1890 (section 2 of the Sherman Antitrust Act, 15 U.S.C. 2), the standards applied
by the court shall be identical with those that the banking agencies are directed
to apply under paragraph (5).
“ (C) Upon the consummation of a merger transaction in com pliance with this
subsection and after the term ination of any antitrust litigation commenced within
the period prescribed in this paragraph, or upon the term ination of such period
if no such litigation is commenced therein, the transaction may not thereafter be
attacked in any ju dicial proceeding on the ground that it alone and of itself con­
stituted a violation of any antitrust laws other than section 2 of the Act of July 2,
1890 (section 2 of the Sherman A ntitrust Act, 15 U.S.C. 2), but nothing in this sub­
section shall exempt any bank resulting from a merger transaction from com ­
plying with the antitrust laws after the consummation of such transaction.
“ (D) In any action brought under the antitrust laws arising out of a merger
transaction approved by a Federal supervisory agency pursuant to this subsection,
such agency, and any State banking supervisory agency having ju risdiction within
the State involved, may appear as a party of its own motion and as of right, and
be represented by its counsel.
“ (8) For the purposes of this subsection, the term ‘antitrust laws’ means the
Act of July 2, 1890 (the Sherman Antitrust Act, 15 U.S.C. 1-7), the Act of O ctober
15, 1914 (the Clayton Act, 15 U.S.C. 12-27), and any other Acts in pari materia.




FEDERAL BANKING LEGISLATION— 1966

73

“ (9) Each of the responsible agencies shall include in its annual report to the
Congress a description of each merger transaction approved by it during the period
covered by the report, along with the following information:
“ (A) the name and total resources of each bank involved;
“ (B) whether a report was subm itted by the Attorney General under paragraph
(4), and, if so, a summary by the Attorney General of the substance of such
report; and
“ (C) a statement by the responsible agency of the basis for its approval.”
(b)
Section 18 of such Act is further amended by adding at the end thereof
the following new subsection:
“ (i) (1) No insured State nonmember bank (except a D istrict bank) shall, w ith­
out the prior consent of the Corporation, reduce the amount or retire any part of
its common or preferred capital stock, or retire any part of its capital notes or
debentures.
“ (2) No insured bank shall convert into an insured State bank if its capital stock
or its surplus will be less than the capital stock or surplus, respectively, of the
converting bank at the time of the shareholder’s meeting approving such conver­
sion, without the prior written consent of—
“ (A) the Com ptroller of the Currency if the resulting bank is to be a District
bank;
“ (B) the Board of Governors of the Federal Reserve System if the resulting
bank is to be a State member bank (except a District bank);
“ (C) the Corporation if the resulting bank is to be a State nonmember insured
bank (except a D istrict bank).
“ (3) W ithout the prior written consent of the Corporation, no insured bank shall
convert into a noninsured bank or institution.
“ (4) In granting or w ithholding consent under this subsection, the responsible
agency shall consider—
“ (A) the financial history and condition of the bank,
“ (B) the adequacy of its capital structure,
“ (C) its future earnings prospects,
“ (D) the general character of its management,
“ (E) the convenience and needs of the community to be served, and
“ (F) whether or not its corporate powers are consistent with the purposes
of this A ct.”
Sec. 2. (a) Any merger, consolidation, acquisition of assets, or assumption of
liabilities involving an insured bank which was consummated prior to June 17,
1963, the bank resulting from which has not been dissolved or divided and has not
effected a sale or distribution of assets and has not taken any other sim ilar action
pursuant to a final judgm ent under the antitrust laws prior to the enactment of
this Act, shall be conclusively presumed to have not been in violation of any anti­
trust laws other than section 2 of the Act of July 2, 1890 (section 2 of the Sherman
A ntitrust Act, 15 U.S.C. 2).
(b) No merger, consolidation, acquisition of assets, or assumption of liabilities
involving an insured bank which was consummated after June 16, 1963, and prior
to the date of enactment of this Act and as to which no litigation was initiated
by the Attorney General prior to the date of enactment of this Act may be attacked
after such date in any ju dicial proceeding on the ground that it alone and of itself
constituted a violation of any antitrust laws other than section 2 of the Act of
July 2, 1890 (section 2 of the Sherman A ntitrust Act, 15 U.S.C. 2).
(c) Any court having pending before it on or after the date of enactment of
this Act any litigation initiated under the antitrust laws by the Attorney General
after June 16, 1963, with respect to the merger, consolidation, acquisition of
assets, or assumption of liabilities of an insured bank consummated after June 16,
1963, shall apply the substantive rule of law set forth in section 18(c)(5) of the
Federal Deposit Insurance Act, as amended by this Act.
(d) For the purposes of this section, the term “ antitrust laws” means the Act
of July 2, 1890 (the Sherman Antitrust Act, 15 U.S.C. 1-7), the Act of October 15,
1914 (the Clayton Act, 15 U.S.C. 12-27), and any other Acts in pari materia.




74

FEDERAL DEPOSIT INSURANCE CORPORATION

Sec. 3. Any application for approval of a merger transaction (as the term
“ merger transaction” is used in section 18(c) of the Federal Deposit Insurance
Act) which was made before the date of enactment of this Act, but was withdrawn
or abandoned as a result of any objections made or any suit brought by the
Attorney General, may be reinstituted and shall be acted upon in accordance with
the provisions of this Act without prejudice by such withdrawal, abandonment,
objections, or ju dicial proceedings.
Approved February 21, 1966.

Public Law 89-485
89th Congress, H. R. 7371
July 1, 1966

AN ACT
To amend the Bank Holding Company Act of 1956.
Be it enacted by the Senate and House of Representatives of the United States
cf America in Congress assembled, That subsection (a) of section 2 of the Bank
Holding Company Act of 1956 (12 U.S.C. 1841(a) ) is amended to read as follows:
“ (a) ‘Bank holding com pany’ means any company (1) that 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 mere banks or of a company that is or becomes a bank
holding company by virtue of this Act, or (2) that controls in any manner the
election of a m ajority of the directors of each of two or more banks; 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. Nothwithstanding the foregoing, (A) no bank
and no company owning or controlling voting shares of a bank shall be a bank
holding company by virtue of such bank’s ownership or control of shares in a
fiduciary capacity, except as provided in paragraphs (2) and (3) of subsection (g)
of this section, (B) 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 if such shares are held only for such period of time as will permit
the sale thereof on a reasonable basis, and (C) 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
solicitatio n.”
Sec. 2. Subsection (b) of section 2 of the Bank Holding Company Act of 1956
(12 U.S.C. 1841(b)) is amended to read as follows:
“ (b) ‘Company’ means any corporation, business trust, association, or sim ilar
organization, or any other trust unless by its terms it must terminate within twentyfive years or not later than twenty-one years and ten months after the death of
individuals living on the effective date of the trust, but shall not include (1) any
corporation the m ajority of the shares of which are owned by the United States
or by any State, or (2) any partnership.”
Sec. 3. Subsection (c) of section 2 of the Bank Holding Company Act of 1956
(12 U.S.C. 1841(c) ) is amended to read as follows:
“ (c) ‘Bank’ means any institution that accepts deposits that the depositor has
a legal right to withdraw on demand, but shall not include any organization oper­
ating under section 25 or section 25(a) of the Federal Reserve Act, or any organi­
zation that does not do business within the United States. ‘District bank’ means any
bank organized or operating under the Code of Law for the District of Colum bia.”
Sec. 4. Subsection (d) of section 2 of the Bank Holding Company Act of 1956
(12 U.S.C. 1841(d)) is amended to read as follows:
“ (d) ‘S ubsidiary’, 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 directly or indirectly owned or controlled by such bank holding company, or is
held by it with power to vote; or (2) any company the election of a m ajority of




FEDERAL BANKING LEGISLATION— 1966

75

whose directors is controlled in any manner by such bank holding c o m p a n y/’
Sec. 5. Subsection (g) of section 2 of the Bank Holding Company Act of 1956
(12 U.S.C. 1841(g) ) is repealed.
Sec. 6. Section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841),
as amended by this Act, is further amended by adding at the end thereof the
following new subsections:
“ (g) For the purposes of this A ct—
“ (1) shares owned or controlled by any subsidiary of a bank holding company
shall be deemed to be indirectly owned or controlled by such bank holding
company;
“ (2) shares held or controlled directly or indirectly by trustees for the benefit
of (A) a company, (B) the shareholders or members of a company, or (C) the
employees (whether exclusively or not) of a company, shall be deemed to be
controlled by such company; and
“ (3) shares transferred after January 1, 1966, by any bank holding company
(or by any company which, but for such transfer, would be a bank holding
company) directly or indirectly to any transferee that is indebted to the trans­
feror, or has one or more officers, directors, trustees, or beneficiaries in com ­
mon with or subject to control by the transferor, shall be deemed to be indirectly
owned or controlled by the transferor unless the Board, after opportunity for
hearing, determines that the transferor is not in fact capable of controlling the
transferee.
“ (h) The application of this Act and of section 23A of the Federal Reserve Act
(12 U.S.C. 371), as amended, shall not be affected by the fact that a transaction
takes place wholly or partly outside the United States or that a company is orga­
nized or operates outside the United States: Provided, however, That the prohibi­
tions of section 4 of this Act shall not apply to shares of any company organized
under the laws of a foreign country that does not do any business within the
United States, if such shares are held or acquired by a bank holding company
that is principally engaged in the banking business outside the United States.”
Sec. 7. (a) The first sentence of subsection (a) of section 3 of the Bank Holding
Company Act of 1956 (12 U.S.C. 1842(a) ) is amended to read as follows: “ It shall
be unlawful, except with the prior approval of the Board, (1) for any action to be
taken that causes any company to become a bank holding company; (2) for any
action to be taken that causes a bank to become a subsidiary of a bank holding
company; (3) for any bank holding company to acquire direct or indirect owner­
ship 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; (4) 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 (5) for any bank holding company to merge or consolidate with any other
bank holding com pany.”
(b) The second sentence of subsection (a) of section 3 of the Bank Holding
Company Act of 1956 (12 U.S.C. 1842(a)) is amended by striking the words
“ except where such shares are held for the benefit of the shareholders of such
bank” at the end of clause (i) and inserting in lieu thereof the words “ except where
such shares are held under a trust that constitutes a company as defined in sec­
tion 2(b) and except as provided in paragraphs (2) and (3) of section 2(g)” .
(c) Subsection (c) of section 3 of the Bank Holding Company Act of 1956 is
amended to read as follows:
“ (c) The Board shall not approve—
“ (1) any acquisition or merger or consolidation under this section which
would result in a monopoly, or which would be in furtherance of any com bina­
tion or conspiracy to monopolize or to attempt to monopolize the business of
banking in any part of the United States, or
“ (2) any other proposed acquisition or merger or consolidation under this
section whose effect in any section of the country may be substantially to lessen
com petition, or to tend to create a monopoly, or which in any other manner
would be in restraint of trade, unless it finds that the anticom petitive effects of




76

FEDERAL DEPOSIT INSURANCE CORPORATION

the proposed transaction are clearly outweighed in the public interest by the
probable effect of the transaction in meeting the convenience and needs of the
com munity to be served.
In every case, the Board shall take into consideration the financial and mana­
gerial resources and future prospects of the company or companies and the banks
concerned, and the convenience and needs of the comm unity to be served.”
(d)
Subsection (d) of section 3 of the Bank Holding Company Act of 1956
(12 U.S.C. 1842(d) ) is amended by striking the words “ in which such bank
holding company maintains its principal office and place of business or in which
it conducts its principal operations” and inserting in lieu thereof the words “ in
which the operations of such bank holding com pany’s banking subsidiaries were
principally conducted on the effective date of this amendment or the date on which
such company became a bank holding company, whichever is later,” . Such sub­
section is further amended by adding at the end thereof the follow ing new sen­
tence: “ For the purposes of this section, the State in which the operations of a
bank holding com pany’s subsidiaries are principally conducted is that State in
which total deposits of all such banking subsidiaries are largest.”
Sec. 8. (a) Subsection (a) of section 4 of the Bank Holding Company Act of
1956 (12 U.S.C. 1843(a)) is amended to read as follows:
“ (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 owner­
ship or control of any voting shares of any company which is not a bank, or
“ (2) after two years from the date as of which it becomes a bank holding
company, or, in the case of any company that has been continuously affiliated
since May 15, 1955, with a company which was registered under the Investment
Company Act of 1940, prior to May 15, 1955, in such a manner as to constitute
an affiliated company within the meaning of that Act, after December 31, 1978,
retain direct or indirect ow nership or control of any voting shares of any com ­
pany 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 perform ing 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 tim e as to such bank
holding company for not more than one year at a time, if, in its judgm ent, such
an extension would not be detrim ental to the public interest, but no such exten­
sions shall in the aggregate exceed three years.”
(b)
Subsection (c) of section 4 of the Bank Holding Company A ct of 1956
(12 U.S.C. 1843(c)) is amended to read as follows:
“ (c) The prohibitions in this section shall not apply to any bank holding com ­
pany which is a labor, agricultural, or horticultural organization and which is
exempt from taxation under section 501 of the Internal Revenue Code of 1954,
and such prohibitions shall not, with respect to any other bank holding company,
apply to—
“ (1) shares of any company engaged or to be engaged solely in one or more
of the follow ing activities: (A) holding or operating properties used w holly or
substantially by any banking subsidiary of such bank holding company in the
operations of such banking subsidiary or acquired for such future use; or (B)
conducting a safe deposit business; or (C) furnishing services to or perform ing
services for such bank holding company or its banking subsidiaries; or (D)
liquidating assets acquired from such bank holding company or its banking
subsidiaries or acquired from any other source prior to May 9, 1956, or the date
on which such company became a bank holding company, w hichever is later;
“ (2) shares acquired by a bank in satisfaction of a debt previously contracted
in good faith, but such bank shall dispose of such shares within a period of
two years from the date on which they were acquired, except that the Board is
authorized upon application by such bank holding company to extend such
period of two years from time to tim e as to such holding company for not more
than one year at a time if, in its judgment, such an extension would not be




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77

detrim ental to the public interest, but no such extensions shall extend beyond
a date five years after the date on which such shares were acquired;
“ (3) shares acquired by such bank holding company from any of its sub­
sidiaries which subsidiary has been requested to dispose of such shares by
any Federal or State authority having statutory power to examine such sub­
sidiary, but such bank holding company shall dispose of such shares within
a period of two years from the date on which they were acquired;
“ (4) shares held or acquired by a bank in good faith in a fiduciary capacity,
except where such shares are held under a trust that constitutes a company
as defined in section 2(b) and except as provided in paragraphs (2) and (3) of
section 2(g);
“ (5) 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;
“ (6) shares of any company which do not include more than 5 per centum
of the outstanding voting shares of such company;
“ (7) shares 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 shares of any company;
“ (8) shares of any company all the activities of which are or are to be 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 man­
aging 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;
“ (9) shares of any company which is or is to be organized under the laws
of a foreign country and which is or is to be engaged principally in the banking
business outside the United States; or
“ (10) shares law fully acquired and owned prior to May 9, 1956, by a bank
which is a bank holding company, or by any of its w holly owned subsidiaries.”
(c)
Section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843) is
amended by adding at the end thereof the follow ing new subsection:
“ (d) With respect to shares which were not subject to the prohibitions of this
section as originally enacted by reason of any exemption with respect thereto
but which were made subject to such prohibitions by the subsequent repeal of
such exemption, no bank holding company shall retain direct or indirect owner­
ship or control of such shares after five years from the date of the repeal of such
exemption, except as provided in paragraph (2) of subsection (a). Any bank hold­
ing company subject to such five-year lim itation on the retention of nonbanking
assets shall endeavor to divest itself of such shares prom ptly and such bank
holding company shall report its progress in such divestiture to the Board two
years after repeal of the exemption applicable to it and annually thereafter.”
Sec. 9. Section 6 of the Bank Holding Company Act of 1956 (12 U.S.C. 1845)
is hereby repealed.
Sec. 10. The first sentence of section 9 of the Bank Holding Company Act of
1956 (12 U.S.C. 1848) is amended by striking out “ sixty” and inserting “ th irty ” .
Sec. 11. Section 11 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841
(note)) is amended by inserting “ (a)” after “ Sec. 11.” ; by inserting a comma and
“ except as specifically provided in this section” before the period at the end
thereof; and by adding at the end thereof the follow ing new subsections:
“ (b) The Board shall immediately notify the Attorney General of any approval
by it pursuant to this Act of a proposed acquisition, merger, or consolidation
transaction, and such transaction may not be consummated before the thirtieth
calendar day after the date of approval by the Board. Any action brought under
the antitrust laws arising out of an acquisition, merger, or consolidation trans­
action shall be commenced within such thirty-day period. The commencement of
such an action shall stay the effectiveness of the Board’s approval unless the




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FEDERAL DEPOSIT INSURANCE CORPORATION

court shall otherwise specifically order. In any such action, the court shall review
de novo the issues presented. In any judicial proceeding attacking any acqui­
sition, merger, or consolidation transaction approved pursuant to this Act on the
ground that such transaction alone and of itself constituted a violation of any
antitrust laws other than section 2 of the Act of July 2, 1890 (section 2 of the
Sherman A ntitrust Act, 15 U.S.C. 2), the standards applied by the court shall be
identical with those that the Board is directed to apply under section 3 of this Act.
Upon the consummation of an acquisition, merger, or consolidation transaction
in com pliance with this Act and after the term ination of any antitrust litigation
commenced within the period prescribed in this section, or upon the term ination
of such period if no such litigation is commenced therein, the transaction may not
thereafter be attacked in any ju dicial proceeding on the ground that it alone and
of itself constituted a violation of any antitrust laws other than section 2 of the
Act of July 2, 1890 (section 2 of the Sherman A ntitrust Act, 15 U.S.C. 2), but
nothing in this Act shall exempt any bank holding company involved in such a
transaction from com plying with the antitrust laws after the consummation of such
transaction.
“ (c) In any action brought under the antitrust laws arising out of any acquisition,
merger, or consolidation transaction approved by the Board pursuant to this Act,
the Board and any State banking supervisory agency having ju risdiction within
the State involved, may appear as a party of its own motion and as of right, and be
represented by its counsel.
“ (d) Any acquisition, merger, or consolidation of the kind described in section
3(a) of this Act which was consummated at any time prior or subsequent to
May 9, 1956, and as to which no litigation was initiated by the Attorney General
prior to the date of enactment of this amendment, shall be conclusively presumed
not to have been in violation of any antitrust laws other than section 2 of the Act
of July 2, 1890 (section 2 of the Sherman Antitrust Act, 15 U.S.C. 2).
“ (e) Any court having pending before it on or after the date of enactment of
this amendment any litigation initiated under the antitrust laws by the Attorney
General with respect to any acquisition, merger, or consolidation of the kind
described in section 3(a) of this Act shall apply the substantive rule of law set
forth in section 3 of this Act.
“ (f) For the purposes of this section, the term ‘antitrust laws’ means the Act of
July 2, 1890 (the Sherman Antitrust Act, 15 U.S.C. 1-7), the Act of October 15,
1914 (the Clayton Act, 15 U.S.C. 12-27), and any other Acts in pari m ateria.”
Sec. 12. (a) Section 23A of the Federal Reserve Act, as amended (12 U.S.C.
371c), is amended by adding at the end thereof the follow ing new paragraphs:
“ For the purposes of this section, (1) the term ‘extension of c re d it’ and
‘extensions of cre d it’ shall be deemed to include (A) any purchase of securities,
other assets or obligations under repurchase agreement, and (B) the discount
of prom issory notes, bills of exchange, conditional sales contracts, or sim ilar
paper, whether with or without recourse, except that the acquisition of such paper
by a member bank from another bank, without recourse, shall not be deemed to
be a ‘discount’ by such member bank for such other bank; and (2) non-interestbearing deposits to the credit of a bank shall not be deemed to be a loan or
advance or extension of credit 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 or extension of credit
to the depositing bank.
“ For the purposes of this section, the term ‘affiliate’ shall include, with respect
to any member bank, any bank holding company of which such member bank is
a subsidiary within the meaning of the Bank Holding Company Act of 1956, as
amended, and any other subsidiary of such company.
“ The provisions of this section shall not apply to (1) stock, bonds, debentures,
or other obligations of any company of the kinds described in section 4(c)(1) of
the Bank Holding Company Act of 1956, as amended; (2) stock, bonds, de­
bentures, or other obligations accepted as security for debts previously contracted,
provided that such collateral shall not be held for a period of over two years;
(3) shares which are of the kinds and amounts eligible for investment by national




FEDERAL BANKING LEGISLATION— 1966

79

banks under the provisions of section 5136 of the Revised Statutes; (4) any
extension of credit by a member bank to a bank holding company of which such
bank is a subsidiary or to another subsidiary of such bank holding company, if
made within one year after the effective date of this amendment to section 23A
and pursuant to a contract lawfully entered into prior to January 1, 1966; or
(5) any transaction by a member bank with another bank the deposits of which
are insured by the Federal Deposit Insurance Corporation, if more than 50 per
centum of the voting stock of such other bank is owned by the member bank or
held by trustees for the benefit of the shareholders of the member bank.”
(b) Section 25 of the Federal Reserve Act, as amended (12 U.S.C. 601), is
amended by striking out “ either or both o f” immediately preceding “ the following
powers” in the introductory paragraph and by inserting after the paragraph desig­
nated “ Second.” the follow ing new paragraph:
“ Third. To acquire and hold, directly or indirectly, stock or other evidences of
ownership in one or more banks organized under the law of a foreign country
or a dependency or insular possession of the United States and not engaged,
directly or indirectly, in any activity in the United States except as, in the judgm ent
of the Board of Governors of the Federal Reserve System, shall be incidental to
the international or foreign business of such foreign bank; and, notwithstanding
the provisions of section 23A of this Act, to make loans or extensions of credit
to or for the account of such bank in the manner and within the lim its prescribed
by the Board by general or specific regulation or ruling.”
(c) Section 18 of the Federal Deposit Insurance Act, as amended (12 U.S.C.
1828), is further amended by adding at the end thereof the follow ing new
subsection:
“ (j) The provisions of section 23A of the Federal Reserve Act, as amended,
relating to loans and other dealings between member banks and their affiliates,
shall be applicable to every nonmember insured bank in the same manner and to
the same extent as if such nonmember insured bank were a member bank; and
for this purpose any company which would be an affiliate of a nonmember
insured bank, within the meaning of section 2 of the Banking Act of 1933, as
amended, and for the purposes of section 23A of the Federal Reserve Act, if such
bank were a member bank shall be deemed to be an affiliate of such nonmember
insured bank.”
Sec. 13. (a) Subsection (b) of section 2 of the Banking Act of 1933, as amended
(12 U.S.C. 221a), is further amended by inserting before the period at the end
thereof the follow ing: “ ; or
“ (4) W hich owns or controls, directly or indirectly, either a m ajority of the
shares of capital stock of a member bank or more than 50 per centum of the
number of shares voted for the election of directors of a member bank at the pre­
ceding election, or controls in any manner the election of a m ajority of the direc­
tors of a member bank, or for the benefit of whose shareholders or members
all or substantially all the capital stock of a member bank is held by trustees” .
(b) Subsection (c) of section 2 of the Banking Act of 1933, as amended (12
U.S.C. 221a), is repealed.
(c) Section 5144 of the Revised Statutes, as amended (12 U.S.C. 61), is amended
to read as follows:
“ Sec. 5144. In all elections of directors, each shareholder shall have the right
to vote the number of shares owned by him for as many persons as there are
directors to be elected, or to cumulate such shares and give one candidate as
many votes as the number of directors m ultiplied by the number of his shares
shall equal, or to distribute them on the same principle among as many candidates
as he shall think fit; and in deciding all other questions at meetings of share­
holders, each shareholder shall be entitled to one vote on each share of stock
held by him; except that (1) this shall not be construed as lim iting the voting
rights of holders of preferred stock under the terms and provisions of articles
of association, or amendments thereto, adopted pursuant to the provisions of
section 302(a) of the Emergency Banking and Bank Conservation Act, approved




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FEDERAL DEPOSIT INSURANCE CORPORATION

March 9, 1933, as amended; (2) in the election of directors, shares of its own
stock held by a national bank as sole trustee, whether registered in its own name
as such trustee or in the name of its nominee, shall not be voted by the registered
owner unless under the terms of the trust the manner in which such shares shall
be voted may be determined by a donor or beneficiary of the trust and unless
such donor or beneficiary actually directs how such shares shall be voted; and
(3) shares of its own stock held by a national bank and one or more persons as
trustees may be voted by such other person or persons, as trustees, in the same
manner as if he or they were the sole trustee. Shareholders may vote by proxies
duly authorized in w riting; but no officer, clerk, teller, or bookkeeper of such bank
shall act as proxy; and no shareholder whose liability is past due and unpaid
shall be allowed to vote. Whenever shares of stock cannot be voted by reason
of being held by the bank as sole trustee such shares shall be excluded in de­
term ining whether matters voted upon by the shareholders were adopted by the
requisite percentage of shares.”
(d) Paragraph (c) of section 5211 of the Revised Statutes (12 U.S.C. 161)
is amended by striking out the second sentence thereof.
(e) The last sentence of the sixteenth paragraph of section 4 of the Federal
Reserve Act, as amended (12 U.S.C. 304), is amended by striking out all of the
language therein which follows the colon and by inserting in lieu thereof the
follow ing: “ Provided, That whenever any member banks within the same Federal
Reserve district are subsidiaries of the same bank holding company within the
meaning of the Bank Holding Company Act of 1956, participation in any such
nomination or election by such member banks, including such bank holding
company if it is also a member bank, shall be confined to one of such banks,
which may be designated for the purpose by such holding com pany.”
(f) The nineteenth paragraph of section 9 of the Federal Reserve Act (12 U.S.C.
334) is amended by striking out the last sentence of such paragraph.
(g) The twenty-second paragraph of section 9 of the Federal Reserve A ct (12
U.S.C. 337) is repealed.
(h) The third paragraph of section 23A of the Federal Reserve Act (12 U.S.C.
371c) is amended by striking out that part of the first sentence that reads “ For
the purpose of this section, the term ‘affiliate’ shall include holding company
affiliates as well as other affiliates, and” ; and by changing the word “ the” follow ­
ing such language to read “ The” .
(i) Paragraph (4) of section 3(c) of the Investment Company Act of 1940 (15
U.S.C. 80a-3) is repealed.
(j) Paragraph (11) of section 202(a) of the Investment Advisers Act of 1940
(15 U.S.C. 80b-2) is amended by striking out the words “ or any holding company
affiliate, as defined in the Banking Act of 1933” and substituting therefor the words
“ or any bank holding company as defined in the Bank Holding Company Act
of 1956” .
Approved July 1, 1966.

Public Law 89-597
89th Congress, H. R. 14026
Septem ber 21, 1966

AN ACT
To provide for the more flexible regulation of maximum rates of interest or
dividends payable by banks and certain other financial institutions on deposits
or share accounts, to authorize higher reserve requirements on time deposits
at member banks, to authorize open market operations in agency issues by the
Federal Reserve Banks, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States
of America in Congress assembled,
Section 1. The Secretary of the Treasury, the Board of Governors of the Federal
Reserve System, the Board of Directors of the Federal Deposit Insurance Cor­




FEDERAL BANKING LEGISLATION— 1966

81

poration, and the Federal Home Loan Bank Board, in implementation of their
respective powers under existing law and this Act, shall take action to bring
about the reduction of interest rates to the maximum extent feasible in the light
of prevailing money market and general econom ic conditions.
RESERVES AND RATE CEILINGS— MEMBER BANKS
Sec. 2. (a) Section 19 of the Federal Reserve Act is amended by striking the
first six paragraphs (12 U.S.C. 461, 462, and 462b) and inserting:
“ (a) The Board is authorized for the purposes of this section to define the terms
used in this section, to determine what shall be deemed a payment of interest,
and to prescribe such regulations as it may deem necessary to effectuate the
purposes of this section and to prevent evasions thereof.
“ (b) Every member bank shall maintain reserves against its deposits in such
ratios as shall be determined by the affirmative vote of not less than four members
of the Board within the follow ing lim itations:
“ (1) In the case of any member bank in a reserve city, the minimum reserve
ratio for any demand deposit shall be not less than 10 per centum and not
more than 22 per centum, except that the Board, either in individual cases or
by regulation, on such basis as it may deem reasonable and appropriate in
view of the character of business transacted by such bank, may make applicable
the reserve ratios prescribed for banks not in reserve cities.
“ (2) In the case of any member bank not in a reserve city, the minimum re­
serve ratio for any demand deposit shall be not less than 7 per centum and
not more than 14 per centum.
“ (3) In the case of any deposit other than a demand deposit, the minimum
reserve ratio shall be not less than 3 per centum and not more than 10
per centum.
“ (c) Reserves held by any member bank to meet the requirements imposed
pursuant to subsection (b) of this section shall be in the form of—
“ (1) balances maintained for such purpose by such bank in the Federal
Reserve bank of which it is a member, and
“ (2) the currency and coin held by such bank, or such part thereof as the
Board may by regulation prescribe.”
(b) The paragraphs which, prior to the amendments made by this Act, were the
seventh (12 U.S.C. 374a), eighth (12 U.S.C. 374, 463), ninth (12 U.S.C. 464), tenth
(12 U.S.C. 465), eleventh (12 U.S.C. 466), twelfth (12 U.S.C. 371a), and thirteenth
(12 U.S.C. 371b) paragraphs of section 19 of the Federal Reserve Act are re­
spectively redesignated as subsections (d), (e), (f), (g), (h), (i), and (j) of that
section.
(c) Such section is further amended by striking the first sentence of subsection
(j) as redesignated (12 U.S.C. 371) and inserting: “ The Board may from time to
time, after consulting with the Board of Directors of the Federal Deposit Insurance
Corporation and the Federal Home Loan Bank Board, lim it by regulation the rates
of interest which may be paid by member banks on time and savings deposits.
The Board may prescribe different rate lim itations for different classes of deposits,
for deposits of different amounts or with different m aturities or subject to different
conditions regarding withdrawal or repayment, according to the nature o r location
of member banks or their depositors, or according to such other reasonable
bases as the Board may deem desirable in the public interest.”
(d) The last paragraph of such section (12 U.S.C. 462a-1) and the proviso in
section 8 of the Second Liberty Bond Act (31 U.S.C. 771) are repealed.
RATE CEILINGS— INSURED NONMEMBER BANKS
Sec. 3. The
Insurance Act
Directors may
of the Federal
regulation the

second and third sentences of section 18(g) of the Federal Deposit
(12 U.S.C. 1828(g)) are amended to read as follows: “ The Board of
from time to time, after consulting with the Board of Governors
Reserve System and the Federal Home Loan Bank Board, lim it by
rates of interest or dividends that may be paid by insured non­




FEDERAL DEPOSIT INSURANCE CORPORATION

82

member banks (including insured mutual savings banks) on time and savings
deposits. The Board of Directors may prescribe different rate lim itations for dif­
ferent classes of deposits, for deposits of different amounts or with different
m aturities or subject to different conditions regarding withdrawal or repayment,
according to the nature or location of insured nonmember banks or their de­
positors, or according to such other reasonable bases as the Board of Directors
may deem desirable in the public interest.”
RATE CEILINGS— SAVINGS AND LOAN ASSOCIATIONS
Sec. 4. The Federal Home Loan Bank Act is amended by adding after section
5A thereof (12 U.S.C. 1425a) the following new section:
“ Sec. 5B. The Board may from time to time, after consulting with the Board of
Governors of the Federal Reserve System and the Board of Directors of the
Federal Deposit Insurance Corporation, lim it by regulation the rates of interest
or dividends on deposits, shares, or withdrawable accounts that may be paid by
members, other than those the deposits of which are insured in accordance with
the provisions of the Federal Deposit Insurance Act, and by institutions which are
insured institutions as defined in section 401(a) of the National Housing Act. The
Board may prescribe different rate lim itations for different classes of deposits,
shares, or withdrawable accounts, for deposits, shares, or withdrawable accounts
of different amounts or with different m aturities or subject to different conditions
regarding withdrawal or repayment, according to the nature or location of such
members or institutions or their depositors, shareholders, or withdrawable accountholders, or according to such other reasonable bases as the Board may deem
desirable in the public interest.”
OUTSTANDING RATE REGULATIONS
Sec. 5. Any regulation prescribed by the Board of Governors of the Federal
Reserve System or the Board of Directors of the Federal Deposit Insurance Cor­
poration with respect to the payment of deposits and interest thereon by members
banks or insured nonmember banks which is in effect when this Act is enacted
shall continue in effect unless and until it is modified or rescinded after consultatation with the Board of Directors or the Board of Governors, as the case may be,
and the Federal Home Loan Bank Board.
OPEN MARKET OPERATIONS
Sec. 6. Section 14(b) of the Federal Reserve Act (12 U.S.C. 355) is amended by
inserting “ (1)” immediately after “ (b)” and by adding the follow ing new para­
graph at the end:
“ (2) To buy and sell in the open market, under the direction and regulations of
the Federal Open Market Committee, any obligation which is a direct obligation
of, or fully guaranteed as to principal and interest by, any agency of the United
States.”
Sec. 7. The provisions of the preceding sections of this A ct shall be effective
only during the one-year period which begins on the date of enactment of this
Act. Upon the expiration of such period, each provision of law amended by this
Act is further amended to read as it did immediately prior to the enactment of
this Act.
Approved September 21, 1966.

Public Law 89-695
89th Congress, S. 3158
O ctober 16, 1966

AN ACT
To strengthen the regulatory and supervisory authority of Federal agencies over
insured banks and insured savings and loan associations, and for other purposes.



FEDERAL BANKING LEGISLATION— 1966

83

Be it enacted by the Senate and House of Representatives of the United States
of Am erica in Congress assembled, That this Act may be cited as the “ Financial
Institutions Supervisory Act of 1966” .
TITLE I— PROVISIONS RELATING TO THE FEDERAL HOME LOAN BANK BOARD
AND THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION
Sec. 101. (a) Subsection (d) of section 5 of the Home Owners’ Loan Act of 1933
(12 U.S.C. 1464(d)) is hereby amended to read as follows:
“ (d)(1) The Board shall have power to enforce this section and rules and regu­
lations made hereunder. In the enforcement of any provision of this section or
rules and regulations made hereunder, or any other law or regulation, or in any
ether action, suit, or proceeding to which it is a party or in which it is interested,
and in the adm inistration of conservatorships and receiverships, the Board is
authorized to act in its own name and through its own attorneys. Except as
otherwise provided herein, the Board shall be subject to suit (other than suits
on claims for money damages) by any Federal savings and loan association or
director or officer thereof with respect to any matter under this section or any
other applicable law, or rules or regulations thereunder, in the United States
district court for the judicial district in which the home office of the association
is located, or in the United States District Court for the D istrict of Columbia, and
the Board may be served with process in the manner prescribed by the Federal
Rules of Civil Procedure.
“ (2)(A) If, in the opinion of the Board, an association is violating or has
violated, or the Board has reasonable cause to believe that the association is
about to violate, a law, rule, regulation, or charter or other condition imposed in
writing by the Board in connection with the granting of any application or other
request by the association, or written agreement entered into with the Board,
or is engaging or has engaged, or the Board has reasonable cause to believe
that the association is about to engage, in an unsafe or unsound practice, the
Board may issue and serve upon the association a notice of charges in respect
thereof. The notice shall contain a statement of the facts constituting the alleged
violation or violations or the unsafe or unsound practice or practices, and shall
fix a time and place at which a hearing will be held to determine whether an
order to cease and desist therefrom should issue against the association. Such
hearing shall be fixed for a date not earlier than thirty days nor later than sixty
days after service of such notice unless an earlier or a later date is set by the
Board at the request of the association. Unless the association shall appear at
the hearing by a duly authorized representative, it shall be deemed to have con­
sented to the issuance of the cease-and-desist order. In the event of such con­
sent, or if upon the record made at any such hearing the Board shall find that
any violation or unsafe or unsound practice specified in the notice of charges
has been established, the Board may issue and serve upon the association an
order to cease and desist from any such violation or practice. Such order may,
by provisions which may be mandatory or otherwise, require the association and
its directors, officers, employees, and agents to cease and desist from the same,
and, further, to take affirmative action to correct the conditions resulting from
any such violation or practice.
“ (B) A cease-and-desist order shall become effective at the expiration of thirty
days after service of such order upon the association concerned (except in the
case of a cease-and-desist order issued upon consent, which shall become
effective at the time specified therein), and shall remain effective and enforceable,
except to such extent as it is stayed, modified, terminated, or set aside by action
of the Board or a reviewing court.
“ (3)(A) Whenever the Board shall determine that the violation or threatened
violation or the unsafe or unsound practice or practices, specified in the notice
of charges served upon the association pursuant to paragraph (2)(A) of this
subsection, or the continuation thereof, is likely to cause insolvency (as defined
in paragraph (6)(A)(i) of this subsection) or substantial dissipation of assets or
earnings of the association, or is likely to otherwise seriously prejudice the




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FEDERAL DEPOSIT INSURANCE CORPORATION

interests of its savings account holders, the Board may issue a tem porary order
requiring the association to cease and desist from any such violation or practice.
Such order shall become effective upon service upon the association and, unless
set aside, limited, or suspended by a court in proceedings authorized by subparagraph (B) of this paragraph, shall remain effective and enforceable pending
the completion of the adm inistrative proceedings pursuant to such notice and
until such time as the Board shall dismiss the charges specified in such notice or,
if a cease-and-desist order is issued against the association, until the effective
date of any such order.
“ (B) W ithin ten days after the association concerned has been served with a
temporary cease-and-desist order, the association may apply to the United States
district court for the ju dicial district in which the home office of the association is
located, or the United States D istrict Court for the D istrict of Columbia, for an
injunction setting aside, lim iting, or suspending the enforcement, operation, or
effectiveness of such order pending the com pletion of the adm inistrative proceed­
ings pursuant to the notice of charges served upon the association under para­
graph (2)(A) of this subsection, and such court shall have ju risdiction to issue
such injunction.
“ (C) In the case of violation or threatened violation of, or failure to obey, a
temporary cease-and-desist order, the Board may apply to the United States dis­
trict court, or the United States court of any territory, within the ju risdiction of
which the home office of the association is located, for an injunction to enforce
such order, and, if the court shall determine that there has been such violation or
threatened violation or failure to obey, it shall be the duty of the court to issue
such injunction.
“ (4)(A) Whenever, in the opinion of the Board, any director or officer of an
association has committed any violation of law, rule, or regulation, or of a ceaseand-desist order which has become final, or has engaged or participated in any
unsafe or unsound practice in connection with the association, or has comm itted
or engaged in any act, omission, or practice which constitutes a breach of his
fiduciary duty as such director or officer, and the Board determines that the
association has suffered or will probably suffer substantial financial loss or
ether damage or that the interests of its savings account holders could be seri­
ously prejudiced by reason of such violation or practice or breach of fiduciary
duty, and that such violation or practice or breach of fiduciary duty is one involv­
ing personal dishonesty on the part of such director or officer, the Board may
serve upon such director or officer a written notice of its intention to remove him
from office.
“ (B) Whenever, in the opinion of the Board, any director or officer of an
association, by conduct or practice with respect to another savings and loan
association or other business institution which resulted in substantial financial
loss or other damage, has evidenced his personal dishonesty and unfitness to
continue as a director or officer, and, whenever, in the opinion of the Board, any
other person participating in the conduct of the affairs of an association, by con­
duct or practice with respect to such association or other savings and loan
association or other business institution which resulted in substantial financial
loss or other damage, has evidenced his personal dishonesty and unfitness to
participate in the conduct of the affairs of such association, the Board may serve
upon such director, officer, or other person a written notice of its intention to
remove him from office a n d /o r to prohibit his further participation in any manner
in the conduct of the affairs of such association.
“ (C) In respect to any director or officer of an association or any other person
referred to in subparagraph (A) or (B) of this paragraph, the Board may, if it
deems it necesssary for the protection of the association or the interests of its
savings account holders, by written notice to such effect served upon such
director, officer, or other person, suspend him from office a n d /o r prohibit him
from further participation in any manner in the conduct of the affairs of the asso­
ciation. Such suspension a n d /o r prohibition shall become effective upon service
of such notice and, unless stayed by a court in proceedings authorized by sub­




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85

paragraph (E) of this paragraph, shall remain in effect pending the com pletion of
the adm inistrative proceedings pursuant to the notice served under subparagraph
(A) or (B) of this paragraph and until such time as the Board shall dismiss the
charges specified in such notice, or, if an order of removal a n d /o r prohibition is
issued against the director or officer or other person, until the effective date of
any such order. Copies of any such notice shall also be served upon the associa­
tion of which he is a director or officer or in the conduct of whose affairs he has
participated.
“ (D) A notice of intention to remove a director, officer, or other person from
office a n d /o r to prohibit his participation in the conduct of the affairs of an asso­
ciation, shall contain a statement of the facts constituting grounds therefor, and
shall fix a time and place at which a hearing will be held thereon. Such hearing
shall be fixed for a date not earlier than thirty days nor later than sixty days after
the date of service of such notice, unless an earlier or a later date is set by
the Board at the request of (i) such director, officer, or other person, and for
good cause shown, or (ii) the Attorney General of the United States. Unless such
director, officer, or other person shali appear at the hearing in person or by a
duly authorized representative, he shall be deemed to have consented to the
issuance of an order of such removal a n d /o r prohibition. In the event of such
consent, or if upon the record made at any such hearing the Board shall find
that any of the grounds specified in such notice has been established, the Board
may issue such orders of suspension or removal from office, a n d /o r prohibition
from participation in the conduct of the affairs of the association, as it may deem
appropriate. Any such order shall become effective at the expiration of thirty days
after service upon such association and the director, officer, or other person
concerned (except in the case of an order issued upon consent, which shall
become effective at the time specified therein). Such order shall remain effective
and enforceable except to such extent as it is stayed, modified, term inated, or
set aside by action of the Board or a reviewing court.
“ (E) W ithin ten days after any director, officer, or other person has been sus­
pended from office a n d /o r prohibited from participation in the conduct of the
affairs of an association under subparagraph (C) of this paragraph, such director,
officer, or other person may apply to the United States district court for the
judicial district in which the home office of the association is located, or the United
States D istrict Court for the D istrict of Columbia, for a stay of such suspension
a n d /o r prohibition pending the com pletion of the adm inistrative proceedings pur­
suant to the notice served upon such director, officer, or other person under
subparagraph (A) or (B) of this paragraph, and such court shall have ju risdiction
to stay such suspension a n d /o r prohibition.
“ (5)(A) Whenever any director or officer of an association, or other person par­
ticipating in the conduct of the affairs of such association, is charged in any
information, indictm ent, or com plaint authorized by a United States Attorney,
with the commission of or participation in a felony involving dishonesty or breach
of trust, the Board may, by written notice served upon such director, officer, or
other person, suspend him from office a n d /o r prohibit him from further participa­
tion in any manner in the conduct of the affairs of the association, A copy of
such notice shall also be served upon the association. Such suspenson a n d /o r
prohibition shall remain in effect until such information, indictm ent, or com­
plaint is finally disposed of or until terminated by the Board. In the event
that a judgm ent of conviction with respect to such offense is entered against such
director, officer, or other person, and at such time as such judgm ent is not subject
to further appellate review, the Board may issue and serve upon such director,
officer, or other person an order removing him from office a n d /o r prohibiting him
from further participation in any manner in the conduct of the affairs of the asso­
ciation except with the consent of the Board. A copy of such order shall be served
upon such association, whereupon such director or officer shall cease to be a
director or officer of such association. A finding of not guilty or other disposition
of the charge shall not preclude the Board from thereafter instituting proceedings
to remove such director, officer, or other person from office a n d /o r to prohibit




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FEDERAL DEPOSIT INSURANCE CORPORATION

further participation in association affairs, pursuant to subparagraph (A) or (B)
of paragraph (4) of this subsection.
“ (B) if at any time, because of the suspension of one or more directors pur­
suant to this subsection (d), there shall be on the board of directors of an asso­
ciation less than a quorum of directors not so suspended, all powers and functions
vested in or exercisable by such board shall vest in and be exercisable by the
director or directors on the board and not so suspended, until such time as there
shall be a quorum of the board of directors. In the event all of the directors of
an association are suspended pursuant to this subsection (d), the Board shall
appoint persons to serve tem porarily as directors in their place and stead pending
the term ination of such suspensions, or until such time as those who have been
suspended cease to be directors of the association and their respective succes­
sors take office.
“ (6)(A) The grounds for the appointment of a conservator or receiver for an
association shall be one or more of the follow ing: (i) insolvency in that the assets
of the association are less than its obligations to its creditors and others, includ­
ing its members; (ii) substantial dissipation of assets or earnings due to any
violation or violations of law, rules, or regulations, or to any unsafe or unsound
practice or practices; (iii) an unsafe or unsound conditon to transact business;
(iv) w illful violation of a cease-and-desist order which has become final; (v) con­
cealment of books, papers, records, or assets of the association or refusal to
subm it books, papers, records, or affairs of the association for inspection to any
exam iner or to any lawful agent of the Board. The Board shall have exclusive
power and jurisdiction to appoint a conservator or receiver. If, in the opinion of
the Board, a ground for the appointm ent of a conservator or receiver as herein
provided exists, the Board is authorized to appoint ex parte and w ithout notice
a conservator or receiver for the association. In the event of such appointment,
the association may, within thirty days thereafter, bring an action in the United States
d istrict court for the ju dicial district in which the home office of such association
is located, or in the United States D istrict Court for the D istrict of Columbia, for
an order requiring the Board to remove such conservator or receiver, and the
court shall upon the merits dismiss such action or direct the Board to remove
such conservator or receiver. Such proceedings shall be given precedence over
other cases pending in such courts, and shall be in every way expedited. Upon
the commencement of such an action, the court having ju risdiction of any other
action or proceeding authorized under this subsection to which the association
is a party shall stay such action or proceeding during the pendency of the
action for removal of the conservator or receiver.
“ (B) In addition to the foregoing provisions, the Board may, without any require­
ment of notice, hearing, or other action, appoint a conservator or receiver for an
association in the event that (i) the association, by resolution of its board of
directors or of its members, consents to such appointment, or (ii) the associa­
tion is removed from membership in any Federal home loan bank, or its status
as an institution the accounts of which are insured by the Federal Savings and
Loan Insurance Corporation is terminated.
“ (C) Except as otherwise provided in this subsection, no court may take any
action for or toward the removal of any conservator or receiver, or, except at the
instance of the Board, restrain or affect the exercise of powers or functions of a
conservator or receiver.
“ (D) A conservator shall have all the powers of the members, the directors, and
the officers of the association and shall be authorized to operate the association
in its own name or to conserve its assets in the manner and to the extent author­
ized by the Board. The Board shall appoint only the Federal Savings and Loan
Insurance Corporation as receiver for an association, and said Corporation shall
have power to buy at its own sale as receiver, subject to approval by the Board.
The Board may, w ithout any requirement of notice, hearing, or other action,
replace a conservator with another conservator or with a receiver, but any such
replacement shall not affect any right which the association may have to obtain
ju dicial review of the original appointment, except that any removal under this




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87

paragraph (6) shall be removal of the conservator or receiver in office at the time
of such removal.
“ (7)(A) Any hearing provided for in this subsection (d) shall be held in the
Federal judicial district or in the territory in which the home office of the associa­
tion is located unless the party afforded the hearing consents to another place,
and shall be conducted in accordance with the provisions of chapter 5 of title 5
of the United States Code. Such hearing shall be private, unless the Board, in its
discretion, after fully considering the views of the party afforded the hearing,
determines that a public hearing is necessary to protect the public interest. After
such hearing, and within ninety days after the Board has notified the parties that
the case has been submitted to it for final decision, the Board shall render its
decision (which shall include findings of fact upon which its decision is predicated)
and shall issue and cause to be served upon each party to the proceeding an
order or orders consistent with the provisions of this subsection. Judicial review
of any such order shall be exclusively as provided in this paragraph (7). Unless
a petition for review is tim ely filed in a court of appeals of the United States, as
hereinafter provided in subparagraph (B) of this paragraph, and thereafter until
the record in the proceeding has been filed as so provided, the Board may at any
time, upon’such notice and in such manner as it shall deem proper, modify, term in­
ate, or set aside any such order. Upon such filing of the record, the Board may
modify, terminate, or set aside any such order with permission of the court.
“ (B) Any party to the proceeding, or any person required by an order issued
under this subsection to cease and desist from any of the violations or practices
stated therein, may obtain a review of any order served pursuant to subparagraph
(A) of this paragraph (other than an order issued with the consent of the associa­
tion or the director or officer or other person concerned, or an order issued under
paragraph (5)(A) of this subsection), by filing in the court of appeals of the United
States for the circu it in which the home office of the association is located, or in
the United States Court of Appeals for the District of Colum bia Circuit, within
thirty days after the date of service of such order, a written petition praying that
the order of the Board be modified, terminated, or set aside. A copy of such
petition shall be forthwith transm itted by the clerk of the court to the Board, and
thereupon the Board shall file in the court the record in the proceeding, as pro­
vided in section 2112 of title 28 of the United States Code. Upon the filing of such
petition, such court shall have jurisdiction, which upon the filing of the record
shall except as provided in the last sentence of said subparagraph (A) be exclu­
sive, to affirm, modify, terminate, or set aside, in whole or in part, the order of
the Board. Review of such proceedings shall be had as provided in chapter 7 of
title 5 of the United States Code. The judgment and decree of the court shall be
final, except that the same shall be subject to review by the Supreme Court upon
certiorari as provided in section 1254 of title 28 of the United States Code.
“ (C) The commencement of proceedings for judicial review under subparagraph
(B) of this paragraph shall not, unless specifically ordered by the court, operate
as a stay of any order issued by the Board.
“ (8) The Board may in its discretion apply to the United States district court,
or the United States court of any territory, within the ju risdiction of which the
home office of the association is located, for the enforcement of any effective and
outstanding notice or order issued by the Board under this subsection (d), and
such courts shall have jurisdiction and power to order and require com pliance
therewith; but except as otherwise provided in this subsection no court shall have
jurisdiction to affect by injunction or otherwise the issuance or enforcem ent of
any notice or order under this subsection, or to review, modify, suspend, terminate,
or set aside any such notice or order. Any court having jurisdiction of any pro­
ceeding instituted under this subsection by an association or a director or officer
thereof, may allow to any such party such reasonable expenses and attorneys’
fees as it deems just and proper; and such expenses and fees shall be paid by
the association or from its assets.
“ (9) In the course of or in connection with any proceeding under this subsec­
tion, the Board or any member thereof or a designated representative of the Board,
including any person designated to conduct any hearing under this subsection,




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FEDERAL DEPOSIT INSURANCE CORPORATION

shall have power to administer oaths and affirmations, to take or cause to be
taken depositions, and to issue, revoke, quash, or modify subpenas and subpenas
duces tecum; and the Board is empowered to make rules and regulations with
respect to any such proceedings. The attendance of witnesses and the production
of documents provided for in this paragraph may be required from any place in
any State or in any territory at any designated place where such proceeding is
being conducted. Any party to proceedings under this subsection may apply to
the United States District Court for the District of Columbia, or the United States
district court for the ju dicial district or the United States court in any territory in
which such proceeding is being conducted or where the witness resides or carries
on business, for enforcement of any subpena or subpena ddces tecum issued
pursuant to this paragraph, and such courts shall have ju risdiction and power to
order and require com pliance therewith. Witnesses subpenaed under this para­
graph shall be paid the same fees and mileage that are paid witnesses in the
district courts of the United States. All expenses of the Board or of the Federal
Savings and Loan Insurance Corporation in connection with this subsection shall
be considered as nonadm inistrative expenses.
“ (10) Any service required or authorized to be made by the Board under this
subsection may be made by registered mail, or in such other manner reasonably
calculated to give actual notice as the Board may by regulation or otherwise
provide.
“ (11) The Board shall have power to make rules and regulations for the re­
organization, consolidation, liquidation, and dissolution of associations, for the
merger of associations with other institutions the accounts of which are insured
by the Federal Savings and Loan Insurance Corporation, for associations in con­
servatorship and receivership, and for the conduct of conservatorships and re­
ceiverships; and the Board may, by regulation or otherwise, provide for the exer­
cise of functions by members, directors, or officers of an association during
conservatorship and receivership.
“ (12)(A) Any director or officer, or form er director or officer, of an association,
or any other person, against whom there is outstanding and effective any notice
or order (which is an order which has become final) served upon such director,
officer, or other person under paragraph (4)(C), (4)(D), or (5)(A) of this subsection,
and who (i) participates in any manner in the conduct of the affairs of such asso­
ciation, or directly or indirectly solicits or procures, or transfers or attempts to
transfer, or votes or attempts to vote any proxies, consents, or authorizations in
respect of any voting rights in such association, or (ii) without the prior written
approval of the Board, votes for a director or serves or acts as a director, officer,
or employee of any institution the accounts of which are insured by the Federal
Savings and Loan Insurance Corporation, shall upon conviction be fined not more
than $5,000 or imprisoned for not more than one year, or both.
“ (B) Except with the prior written consent of the Board, no person shall serve
as a director, officer, or employee of an association who has been convicted, or
who is hereafter convicted, of a crim inal offense involving dishonesty or a breach
of trust. For each w illful violation of this prohibition, the association involved
shall be subject to a penalty of not more than $100 for each day this prohibition
is violated, which the Board may recover by suit or otherwise for its own use.
“ (C) Whenever a conservator or receiver appointed by the Board demands
possession of the property, business, and assets of any association, or of any part
thereof, the refusal by any director, officer, employee, or agent of such association
to comply with the demand shall be punishable by a fine of not more than $5,000
or imprisonment for not more than one year, or both.
“ (13)(A) As used in this subsection—
“ (1) The terms ‘cease-and-desist order which has become fin a l’ and ‘order
which has become fin a l’ mean a cease-and-desist order, or an order, issued by the
Board with the consent of the association or the director or officer or other person
concerned, or with respect to which no petition for review of the action of the
Board has been filed and perfected in a court of appeals as specified in paragraph
(7)(B) of this subsection, or with respect to which the action of the court in which




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89

said petition is so filed is not subject to further review by the Supreme Court of
the United States in proceedings provided for in said paragraph, or an order
issued under paragraph (5)(A) of this subsection.
“ (2) The term ‘State’ includes the Commonwealth of Puerto Rico.
“ (3) The term ‘te rrito ry’ includes any possession of the United States and any
place subject to the ju risdiction of the United States.
“ (4) The terms ‘d is tric t’, ‘district co u rt’, ‘district court of the United States’,
and ‘judicial d is tric t’ shall have the meanings defined in section 451 of title 28
of the United States Code.
“ (B) As used in paragraph (4) of this subsection, the term ‘vio latio n’ includes
without lim itation any action (alone or with another or others) for or toward
causing, bringing about, participating in, counseling, or aiding or abetting a
violation.
“ (14) As used in this subsection, the terms ‘Federal savings and loan associa­
tio n ’ and ‘association’ shall include any institution with respect to which the
Federal Home Loan Bank Board now or hereafter has any statutory power of
examination or supervision under any Act or joint resolution of Congress other
than this Act, the Federal Home Loan Bank Act, and the National Housing Act.
For the purposes of this paragraph (14), references in this subsection to directors,
officers, employees, and agents, or to form er directors or officers, of associations
shall be deemed to be references respectively to directors, officers, employees,
and agents, or to form er directors or officers, of such institutions, references
therein to savings account holders and to members of associations shall be
deemed to be references to holders of withdrawable accounts in such institutions,
and references therein to boards of directors of associations shall be deemed
to be references to boards of directors or other governing boards of such insti­
tutions. Said Board shall have power by regulation to define, for the purposes of
this paragraph (14), terms used or referred to in the sentence next preceding and
other terms used in this subsection.”
(b) The amendment made by subsection (a) of this section shall be effective
only with respect to proceedings commenced on or after the date of enactment
of this Act. Section 5 (d ) of the Home Owners’ Loan Act of 1933 as in effect
immediately prior to the date of enactment of this Act shall continue in effect with
respect to any proceedings commenced prior to such date.
Sec. 102. (a) Section 407 of the National Housing Act (12 U.S.C. 1730) is hereby
amended to read as follows:
“ Sec. 407. Termination of Insurance and Enforcement Provisions.—
“ (a) Voluntary Termination of Insurance.— Any insured institution other than a
Federal savings and loan association may terminate its status as an insured
institution by written notice to the Corporation specifying a date for such term i­
nation.
“ (b) Involuntary Termination of Insurance; Notice and Hearing.— (1) Whenever,
in the opinion of the Corporation, any insured institution has violated its duty as
such or is engaging or has engaged in an unsafe or unsound practice in conduc­
ting the business of such institution, or is in an unsafe or unsound condition to
continue operations as an insured institution, or is violating or has violated an
applicable law, rule, regulation, or order, or any condition imposed in w riting by
the Corporation in connection with the granting of any application or other request
by the institution, or any written agreement entered into with the Corporation,
including any agreement entered into under section 403 of this title, the C o r p o r ­
ation shall serve upon the institution a statement with respect to such violations or
practices or conditions for the purpose of securing the correction thereof, and
shall send a copy of such statement to the appropriate State supervisory authority.
“ (2) Unless such correction shall be made within one hundred and twenty days
after service of such statement, or such shorter period of not less than twenty
days after such service as (A) the Corporation shall require in any case where the
Corporation determines that its insurance risk with respect to such institution
could be unduly jeopardized by further delay in the correction of such violations
or practices or conditions, or (B) the appropriate State supervisory authority shall
require, or unless within such time the Corporation shall have received acceptable




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FEDERAL DEPOSIT INSURANCE CORPORATION

assurances that such correction w ill be made within a time and in a manner satis­
factory to the Corporation, or in the event such assurances are submitted to and
accepted by the Corporation but are not carried out in accordance with their
terms, the Corporation may, if it shall determine to proceed further, issue and
serve upon the institution written notice of intention to terminate the status of the
institution as an insured institution.
“ (3) Such notice shall contain a statement of the facts constituting the alleged
violation or violations or the unsafe or unsound practice or practices or condition,
and shall fix a time and place for a hearing thereon. Such hearing shall be fixed
for a date not earlier than thirty days after service of such notice. Unless the insti­
tution shall appear at the hearing by a duly authorized representative, it shall be
deemed to have consented to the term ination of its status as an insured institu­
tion. In the event of such consent, or if upon the record made at any such hearing
the Corporation shall find that any violation or unsafe or unsound practice or con­
dition specified in such notice has been established and has not been corrected
within the time above prescribed in which to make correction, the Corporation
may issue and serve upon the institution an order term inating the status of the
institution as an insured institution; but any such order shall not become effective
until it is an order which has become final (except in the case of an order of ter­
m ination issued upon consent, which shall become effective at the time specified
therein).
“ (c) Date of Termination of Insured Status.— The effective date of the term ina­
tion of an institution’s status as an insured institution under the foregoing provi­
sions of this section shall be the date specified for such term ination in the notice
by the institution to the Corporation as provided in subsection (a) of this section,
or the date upon which an order of term ination issued under subsection (b)(3) of
this section becomes effective. The Corporation may from time to time postpone
the effective date of the term ination of an institution’s status as an insured insti­
tution at any time before such term ination has become effective, but in the case
of term ination by notice given by the institution such effective date shall be post­
poned only with the written consent of the institution.
“ (d) Continuation of Insurance; Examination; Notice to Members; and Payment
of Premiums.— In the event of the term ination of an institution’s status as an in­
sured institution, insurance of its accounts to the extent that they were insured on
the effective date of such term ination as hereinabove provided in subsection (c),
less any amounts thereafter withdrawn, repurchased, or redeemed, shall continue
for a period of two years, but no investments or deposits made after such date
shall be insured. The Corporation shall have the right to examine such institution
from time to time during the two-year period aforesaid. Such insured institution
shall be obligated to pay, within thirty days after the effective date of such ter­
mination, as a final insurance premium, a sum equivalent to twice the last annual
insurance premium payable by it. In the event of the term ination of insurance of
accounts as herein provided the institution which was the insured institution shall
give prompt and reasonable notice to all of its insured members that it has ceased
to be an insured institution and it may include in such notice the fact that insured
accounts, to the extent not withdrawn, repurchased, or redeemed, remain insured
for two years from the date of such term ination, but it shall not further represent
itself in any manner as an insured institution. In the event of failure to give the
notice to insured members as herein provided the Corporation is authorized to
give reasonable notice.
“ (e) Cease-and-Desist Proceedings.— (1) If, in the opinion of the Corporation,
any insured institution or any institution any of the accounts of which are insured
is engaging or has engaged, or the Corporation has reasonable cause to believe
that the institution is about to engage, in an unsafe or unsound practice in con­
ducting the business of such institution, or is violating or has violated, or the Cor­
poration has reasonable cause to believe that the institution is about to violate,
a law, rule, or regulation, or any condition imposed in writing by the Corporation
in connection with the granting of any application or other request by the institu­
tion, or written agreement entered into with the Corporation, including any agree­
ment entered into under section 403 of this title, the Corporation may issue and




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91

serve upon the institution a notice of charges in respect thereof. The notice shall
contain a statement of the facts constituting the alleged violation or violations or
the unsafe or unsound practice or practices, and shall fix a time and place at
which a hearing will be held to determine whether an order to cease and desist
therefrom should issue against the institution. Such hearing shall be fixed for a
date not earlier than thirty days nor later than sixty days after service of such
notice unless an earlier or a later date is set by the Corporation at the request of
the institution. Unless the institution shall appear at the hearing by a duly author­
ized representative, it shall be deemed to have consented to the issuance of the
cease-and-desist order. In the event of such consent, or if upon the record made
at any such hearing the Corporation shall find that any violation or unsafe or un­
sound practice specified in the notice of charges has been established, the Cor­
poration may issue and serve upon the institution an order to cease and desist
from any such violation or practice. Such order may, by provisions which may be
mandatory or otherwise, require the institution and its directors, officers, em­
ployees, and agents to cease and desist from the same, and, further to take
affirmative action to correct the conditions resulting from any such violation or
practice.
“ (2) A cease-and-desist order shall become effective at the expiration of thirty
days after service of such order upon the institution concerned (except in the
case of a cease-and-desist order issued upon consent, which shall become effec­
tive at the time specified therein), and shall remain effective and enforceable ex­
cept to such extent as it is stayed, modified, terminated, or set aside by action of
the Corporation or a reviewing court.
“ (f) Temporary Cease-and-Desist Orders.— (1) Whenever the Corporation shall
determine that the violation or threatened violation or the unsafe or unsound prac­
tice or practices, specified in the notice of charges served upon the institution
pursuant to subsection (e) (1) of this section, or the continuation thereof, is likely
to cause insolvency or substantial dissipation of assets or earnings of the insti­
tution, or is likely to otherwise seriously prejudice the interest of its insured mem­
bers or of the Corporation, the Corporation may issue a tem porary order requir­
ing the institution to cease and desist from any such violation or practice. Such
order shall become effective upon service upon the institution and, unless set
aside, limited, or suspended by a court in proceedings authorized by paragraph
(2) of this subsection, shall remain effective and enforceable pending the com­
pletion of the adm inistrative proceedings pursuant to such notice and until such
time as the Corporation shall dismiss the charges specified in such notice or, if
a cease-and-desist order is issued against the institution, until the effective date
of any such order.
“ (2) W ithin ten days after the institution concerned has been served with a
tem porary cease-and-desist order, the institution may apply to the United States
district court for the judicial district in which the principal office of the institution
is located, or the United States D istrict Court for the D istrict of Columbia, for an
injunction setting aside, lim iting, or suspending the enforcement, operation, or
effectiveness of such order pending the com pletion of the adm inistrative proceed­
ings pursuant to the notice of charges served upon the institution under subsec­
tion (e) (1) of this section, and such court shall have ju risdiction to issue such
injunction.
“ (3) In the case of violation or threatened violation of, or failure to obey, a
temporary cease-and-desist order, the Corporation may apply to the United States
district court, or the United States court of any territory, within the jurisdiction of
which the principal office of the institution is located, for an injunction to enforce
such order, and, if the court shall determine that there has been such violation or
threatened violation or failure to obey, it shall be the duty of the court to issue
such injunction.
“ (g) Suspension or Removal of Director or Officer.— (1) Whenever, in the opin­
ion of the Corporation, any director or officer of an insured institution has com­
mitted any violation of law, rule, or regulation, or of a cease-and-desist order
which has become final, or has engaged or participated in any unsafe or unsound
practice in connection with the institution, or has com mitted or engaged in any




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FEDERAL DEPOSIT INSURANCE CORPORATION

act, omission, or practice which constitutes a breach of his fiduciary duty as such
director or officer, and the Corporation determines that the institution has suffered
or will probably suffer substantial financial loss or other damage or that the
interests of its insured members could be seriously prejudiced by reason of such
violation or practice or breach of fiduciary duty, and that such violation or prac­
tice or breach of fiduciary duty is one involving personal dishonesty on the part
of such director or officer, the Corporation may serve upon such director or offi­
cer a written notice of its intention to remove him from office.
“ (2) Whenever, in the opinion of the Corporation, any director or officer of an
insured institution, by conduct or practice with respect to another insured institu­
tion or other business institution which resulted in substantial financial loss or
other damage, has evidenced his personal dishonesty and unfitness to continue
as a director or officer, and, whenever, in the opinion of the Corporation, any
other person participating in the conduct of the affairs of an insured institution,
by conduct or practice with respect to such institution or other insured institution
or other business institution which resulted in substantial financial loss or other
damage, has evidenced his personal dishonesty and unfitness to participate in
the conduct of the affairs of such insured institution, the Corporation may serve
upon such director, officer, or other person a written notice of its intention to
remove him from office a n d /o r to prohibit his further participation in any manner
in the conduct of the affairs of such institution.
“ (3) In respect to any director or officer of an insured institution or any other
person referred to in paragraph (1) or (2) of this subsection, the Corporation may,
if it deems it necessary for the protection of the institution or the interests of its
insured members or of the Corporation, by written notice to such effect served
upon such director, officer, or other person, suspend him from office a n d /o r pro­
hibit him from further participation in any manner in the conduct of the affairs of
the institution. Such suspension a n d /o r prohibition shall become effective upon
service of such notice and, unless stayed by a court in proceedings authorized
by paragraph (5) of this subsection, shall remain in effect pending the completion
of the adm inistrative proceedings pursuant to the notice served under paragraph
(1) or (2) of this subsection and until such time as the Corporation shall dismiss
the charges specified in such notice, or, if an order of removal a n d /o r prohibition
is issued against the director or officer or other person, until the effective date
of any such order. Copies of any such notice shall also be served upon the insti­
tution of which he is a director or officer or in the conduct of whose affairs he
has participated.
“ (4) A notice of intention to remove a director, officer, or other person from
office a n d /o r to prohibit his participation in the conduct of the affairs of an in­
sured institution, shall contain a statement of the facts constituting grounds there­
for, and shall fix a time and place at which a hearing will be held thereon. Such
hearing shall be fixed for a date not earlier than thirty days nor later than sixty
days after the date of service of such notice, unless an earlier or a later date is
set by the Corporation at the request of (A) such director, officer, or other person
and for good cause shown, or (B) the Attorney General of the United States. Un­
less such director, officer, or other person shall appear at the hearing in person
or by a duly authorized representative, he shall be deemed to have consented
to the issuance of an order of such removal a n d /o r prohibition. In the event of
such consent, or if upon the record made at any such hearing the Corporation
shall find that any of the grounds specified in such notice has been established,
the Corporation may issue such orders of suspension or removal from office,
a n d /o r prohibition from participation in the conduct of the affairs of the institu­
tion, as it may deem appropriate. Any such order shall become effective at the
expiration of thirty days after service upon such institution and the director, offi­
cer, or other person concerned (except in the case of an order issued upon con­
sent, which shall become effective at the time specified therein). Such order shall
remain effective and enforceable except to such extent as it is stayed, modified,
terminated, or set aside by action of the Corporation or a reviewing court.
“ (5) W ithin ten days after any director, officer, or other person has been sus­
pended from office a n d /o r prohibited from participation in the conduct of the




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93

affairs of an insured institution under paragraph (3) of this subsection, such direc­
tor, officer, or other person may apply to the United States d istrict court for the
judicial district in which the principal office of the institution is located, or the
United States D istrict Court for the D istrict of Columbia, for a stay of such sus­
pension a n d /o r prohibition pending the com pletion of the adm inistrative proceed­
ings pursuant to the notice served upon such director, officer, or other person
under paragraph (1) or (2) of this subsection, and such court shall have ju ris d ic ­
tion to stay such suspension a n d /o r prohibition.
“ (h) Suspension of Director or O fficer Charged with Felony.— Whenever any
director or officer of an insured institution, or other person participating in the
conduct of the affairs of such institution, is charged in any information, in dict­
ment, or com plaint authorized by a United States Attorney, with the commission
of or participation in a felony involving dishonesty or breach of trust, the C orpora­
tion may, by written notice served upon such director, officer, or other person,
suspend him from office a n d /o r prohibit him from further participation in any
manner in the conduct of the affairs of the institution. A copy of such notice shall
also be served upon the institution. Such suspension a n d /o r prohibition shall
remain in effect until such information, indictment, or com plaint is finally disposed
of or until term inated by the Corporation. In the event that a judgm ent of convic­
tion with respect to such offense is entered against such director, officer, or other
person, and at such time as such judgm ent is not subject to further appellate re­
view, the Corporation may issue and serve upon such director, officer, or other
person an order removing him from office a n d /o r prohibiting him from further
participation in any manner in the conduct of the affairs of the institution except
with the consent of the Corporation. A copy of such order shall also be served
upon such institution, whereupon such director or officer shall cease to be a
director or officer of such institution. A finding of not guilty or other disposition
of the charge shall not preclude the Corporation from thereafter instituting pro­
ceedings to remove such director, officer, or other person from office a n d /o r to
prohibit further participation in institution affairs, pursuant to paragraph (1) or (2)
of subsection (g) of this section.
“ (i) Termination of Federal Home Loan Bank Membership.— Term ination under
this section or otherwise of the status of an institution as an insured institution
shall autom atically constitute a removal under subsection (i) of section 6 of the
Federal Home Loan Bank Act of the institution from Federal home loan bank
membership, if at the time of such term ination such institution is a member of a
Federal home loan bank; and removal of an institution from Federal home loan
bank membership under subsection (i) of section 6 of the Federal Home Loan
Bank Act or otherwise shall autom atically constitute an order of term ination
under this section of the status of such institution as an insured institution, if
such institution is at the time of such removal an insured institution.
“ (j) Hearings and Judicial Review.— (1) Any hearing provided for in this sec­
tion shall be held in the Federal ju dicial d istrict or in the territory in which the
principal office of the institution is located unless the party afforded the hearing
consents to another place, and shall be conducted in accordance with the pro­
visions of chapter 5 of title 5 of the United States Code. Such hearing shall be
private, unless the Corporation, in its discretion, after fully considering the views
of the party afforded the hearing, determines that a public hearing is necessary
to protect the public interest. After such hearing, and within ninety days after the
Corporation has notified the parties that the case has been subm itted to it for
final decision, the Corporation shall render its decision (which shall include find­
ings of fact upon which its decision is predicated) and shall issue and cause to
be served upon each party to the proceeding an order or orders consistent with
the provisions of this section. Judicial review of any such order shall be exclu­
sively as provided in this subsection. Unless a petition for review is tim ely filed
in a court of appeals of the United States, as hereinafter provided in paragraph
(2) of this subsection, and thereafter until the record in the proceeding has been
filed as so provided, the Corporation may at any time, upon such notice and in
such manner as it shall deem proper, modify, terminate, or set aside any such




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FEDERAL DEPOSIT INSURANCE CORPORATION

order. Upon such filing of the record, the Corporation may modify, terminate, or
set aside any such order with permission of the court.
“ (2) Any party to the proceeding, or any person required by an order issued
under this section to cease and desist from any of the violations or practices
stated therein, may obtain a review of any order served pursuant to paragraph (1)
of this subsection (other than an order issued with the consent of the institution
or the director or officer or other person concerned, or an order issued under
subsection (h) of this section), by filing in the court of appeals of the United States
for the circu it in which the principal office of the institution is located, or in the
United States Court of Appeals for the District of Columbia Circuit, within thirty
days after the date of service of such order, a written petition praying that the
order of the Corporation be modified, term inated, or set aside. A copy of such
petition shall be forthw ith transmitted by the clerk of the court to the C orpora­
tion, and thereupon the Corporation shall file in the court the record in the pro­
ceeding, as provided in section 2112 of title 28 of the United States Code. Upon
the filing of such petition, such court shall have jurisdiction, which upon the filing
of the record shall, except as provided in the last sentence of said paragraph (1),
be exclusive, to affirm, modify, terminate, or set aside, in whole or in part, the
order of the Corporation. Review of such proceedings shall be had as provided
in chapter 7 of title 5 of the United States Code. The judgm ent and decree of the
court shall be final, except that the same shall be subject to review by the Su­
preme Court upon certiorari as provided in section 1254 of title 28 of the United
States Code.
“ (3) The commencement of proceedings for judicial review under paragraph
(2) of this subsection shall not, unless specifically ordered by the court, operate
as a stay of any order issued by the Corporation.
“ (k) Jurisdiction and Enforcement.— (1) Notwithstanding any other provision
of law, (A) the Corporation shall be deemed to be an agency of the United States
within the meaning of section 451 of title 28 of the United States Code; (B) any
civil action, suit, or proceeding to which the Corporation shall be a party shall be
deemed to arise under the laws of the United States, and the United States dis­
trict courts shall have original jurisdiction thereof, without regard to the amount
in controversy; and (C) the Corporation may, without bond or security, remove
any such action, suit, or proceeding from a State court to the United States dis­
trict court for the district and division embracing the place where the same is
pending by following any procedure for removal now or hereafter in effect: Pro­
vided, That any action, suit, or proceeding to which the Corporation is a party
in its capacity as conservator, receiver, or other legal custodian of an insured
State-chartered institution and which involves only the rights or obligations of
investors, creditors, stockholders, and such institution under State law shall not
be deemed to arise under the laws of the United States. No attachment or execu­
tion shall be issued against the Corporation or its property before final judgm ent
in any action, suit, or proceeding in any court of any State or of the United States
or any territory, or any other court.
“ (2) The Corporation may, in its discretion, apply to the United States district
court, or the United States court of any territory, within the jurisdiction of which
the principal office of the institution is located, for the enforcement of any effec­
tive and outstanding notice or order issued by the Corporation under this section,
and such courts shall have jurisdiction and power to order and require com pli­
ance therewith; but except as otherwise provided in this section no court shall
have jurisdiction to affect by injunction or otherwise the issuance or enforcement
of any notice or order under this section, or to review, modify, suspend, term i­
nate, or set aside any such notice or order.
“ (I) Reporting Requirements.— (1) Whenever a change occurs in the outstand­
ing voting stock of any insured institution which will result in control or a change
in the control of such institution, the president or other chief executive officer of
such institution shall prom ptly report such facts to the Corporation upon obtain­
ing knowledge of such change. As used in this subsection, the term ‘co n tro l’
means the power to directly or indirectly direct or cause the direction of the man­
agement or policies of the insured institution. If there is any doubt as to whether




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95

a change in ownership or other change in the outstanding voting stock of any
insured institution is sufficient to result in control or a change in the control
thereof, such doubt shall be resolved in favor of reporting the facts to the
Corporation.
“ (2) Whenever an insured institution or an insured bank of the Federal Deposit
Insurance Corporation makes a loan or loans secured (or to be secured) by 25
per centum or more of the voting stock of an insured institution, the president
or other chief executive officer of the lending insured institution or insured bank
shall promptly report such fact to the Corporation upon obtaining knowledge of
such loan or loans, except that no report need be made in those cases where the
borrower has been the owner of record of the stock for a period of one year or
more, or the stock is of a newly organized insured institution prior to its opening.
“ (3) The reports required by paragraphs (1) and (2) of this subsection shall con­
tain the following information to the extent that it is known by the person making
the report: (A) the number of shares involved, (B) the names of the sellers (or
transferors), (C) the names of the purchasers (or transferees), (D) the names of
the beneficial owners if the shares are of record in another name or other names,
(E) the purchase price, (F) the total number of shares owned by the sellers (or
transferors), the purchasers (or transferees) and the beneficial owners both imme­
diately before and after the transaction, and in the case of a loan, (G) the name
of the borrower, (H) the amount of the loan, and (I) the name of the institution
issuing the stock securing the loan and the number of shares securing the loan.
In addition to the foregoing, such reports shall contain such other inform ation as
may be available to inform the Corporation of the effect of the transaction upon
control of the institution whose stock is involved. The reports required by this
subsection shall be in addition to any reports that may be required pursuant to
other provisions of law.
“ (4) Whenever such a change as is described in paragraph (1) of this subsec­
tion occurs, the insured institution involved shall report prom ptly to the Corpora­
tion any change or changes, or replacement or replacements, of its chief execu­
tive officer or of any director occurring in the next twelve-month period, including
in its report a statement of the past and current business and professional affilia­
tions of the new chief executive officer or director.
“ (5) W ithout lim itation by or on the foregoing provisions of this subsection, the
Corporation may require insured institutions and individuals or other persons who
have or have had any connection with the management of any insured institution,
as defined by the Corporation, to provide, in such manner and under such civil
penalties (which shall be cumulative to any other remedies) as the Corporation
may prescribe, such periodic or other reports and disclosures as the Corporation
may determine to be necessary or appropriate for the protection of investors or
the Corporation.
“ (6) As used in this subsection, the term ‘stock’ means such stock or other
equity securities or equity interests in an insured institution, or rights, interests,
or powers with respect thereto, regardless of whether such institution is a stock
company, a mutual institution, or otherwise, as the Corporation may by regulation
define for the purposes of this subsection.
“ (m) A ncillary Provisions.— (1) In making examinations of insured institutions,
examiners appointed by the Federal Home Loan Bank Board shall have power, on
behalf of the Corporation, to make such examinations of the affairs of all affiliates
of such institutions as shall be necessary to disclose fully the relations between
such institutions and their affiliates and the effect of such relations upon such
institutions. The cost of examinations of such affiliates shall be assessed against
and paid by the institution. For purposes of this subsection, the term ‘affiliate’
shall have the same meaning as where used in section 2(b) of the Banking Act of
1933 (12 U.S.C. 221 a(b)), except that the term ‘member bank’ in said section 2(b)
shall be deemed to refer to an insured institution.
“ (2) In connection with examinations of insured institutions and affiliates there­
of, the Corporation, or its designated representatives, shall have power to adm in­
ister oaths and affirmations and to examine and to take and preserve testimony
under oath as to any matter in respect of the affairs or ownership of any such




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FEDERAL DEPOSIT INSURANCE CORPORATION

institution or affiliate thereof, and to issue subpenas and subpenas duces tecum,
and, for the enforcement thereof, to apply to the United States district court for
the judicial district or the United States court in any territory in which the prin­
cipal office of the institution or affiliate thereof is located, or in which the witness
resides or carries on business. Such courts shall have jurisdiction and power to
order and require com pliance with any such subpena.
“ (3) In the course of or in connection with any proceeding under this section,
the Corporation or its designated representatives, including any person desig­
nated to conduct any hearing under this section, shall have power to administer
oaths and affirmations, to take or cause to be taken depositions, and to issue,
revoke, quash, or modify subpenas and subpenas duces tecum; and the Corpora­
tion is empowered to make rules and regulations with respect to any such pro­
ceedings. The attendance of witnesses and the production of documents provided
for in this subsection may be required from any place in any State or in any te rri­
tory at any designated place where such proceeding is being conducted. Any
party to proceedings under this section may apply to the United States D istrict
Court for the District of Columbia, or the United States district court for the ju d i­
cial district or the United States court in any territory in which such proceeding
is being conducted, or where the witness resides or carries on business, for en­
forcem ent of any subpena or subpena duces tecum issued pursuant to this sub­
section, and such courts shall have jurisdiction and power to order and require
com pliance therewith. Witnesses subpenaed under this section shall be paid the
same fees and mileage that are paid witnesses in the d istrict courts of the United
States. All expenses of the Board or of the Federal Savings and Loan Insurance
Corporation in connection with this section shall be considered as nonadministrative expenses. Any court having jurisdiction of any proceeding instituted under
this section by an insured institution, or a director or officer thereof, may allow
to any such party such reasonable expenses and attorneys’ fees as it deems just
and proper; and such expenses and fees shall be paid by the institution or from
its assets.
“ (n) Service.— Any service required or authorized to be made by the Corpora­
tion under this section may be made by registered mail, or in such other manner
reasonably calculated to give actual notice as the Corporation may by regulation
or otherwise provide. Copies of any notice or order served by the Corporation
upon any State-chartered institution or any director or officer thereof or other
person participating in the conduct of its affairs, pursuant to the provisions of
this section, shall also be sent to the appropriate State supervisory authority.
“ (o) Notice to State Authorities.— In connection with any proceeding under
subsection (e), (f)(1), or (g) of this section involving an insured State-chartered
institution or any director or officer or other person participating in the conduct
of its affairs, the Corporation shall provide the appropriate State supervisory au­
thority with notice of the C orporation’s intent to institute such a proceeding and
the grounds therefor. Unless within such time as the Corporation deems appro­
priate in the light of the circumstances of the case (which time must be specified
in the notice prescribed in the preceding sentence) satisfactory corrective action
is effectuated by action of the State supervisory authority, the Corporation may
proceed as provided in this section. No institution or other party who is the sub­
ject of any notice or order issued by the Corporation under this section shall have
standing to raise the requirements of this subsection as ground for attacking the
validity of any such notice or order.
“ (p) Penalties.— (1) Any director or officer, or former director or officer, of an
insured institution or an institution any of the accounts of which are insured, or
any other person, against whom there is outstanding and effective any notice or
order (which is an order which has become final) served upon such director, offi­
cer, or other person under subsection (g)(3), (g)(4), or (h) of this section, and who
(A) participates in any manner in the conduct of the affairs of such institution, or
directly or indirectly solicits or procures, or transfers or attempts to transfer, or
votes or attempts to vote any proxies, consents, or authorizations in respect to
any voting rights in such institution, or (B) without the prior written approval of
the Corporation, votes for a director or serves or acts as a director, officer, or




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97

employee of any insured institution, shall upon conviction be fined not more than
$5,000 or imprisoned for not more than one year, or both.
“ (2) Except with the prior written consent of the Corporation, no person shall
serve as a director, officer, or employee of an insured institution who has been
convicted, or who is hereafter convicted, of a crim inal offense involving dishonesty
or a breach of trust. For each w illful violation of this prohibition, the institution
involved shall be subject to a penalty of not more than $100 for each day this
prohibition is violated, which the Corporation may recover by suit or otherwise
for its own use.
“ (q) Definitions.— (1) As used in this section—
“ (A) The terms ‘cease-and-desist order which has become fin a l’ and ‘order
which has become fin a l’ mean a cease-and-desist order, or an order, issued by
the Corporation with the consent of the institution or the director or officer or
other person concerned, or with respect to which no petition for review of the
action of the Corporation has been filed and perfected in a court of appeals as
specified in subsection (j) (2) of this section, or with respect to which the action
of the court in which said petition is so filed is not subject to further review by
the Supreme Court of the United States in proceedings provided for in said sub­
section, or an order issued under subsection (h) of this section.
“ (B) The term ‘State’ includes the Commonwealth of Puerto Rico.
“ (C) The term ‘te rrito ry’ includes any possession of the United States and any
place subject to the jurisdiction of the United States.
“ (D) The terms ‘d is tric t’, ‘d istrict co u rt’, ‘district court of the United States’, and
‘ju dicial d is tric t’ shall have the meanings defined in section 451 of title 28 of the
United States Code.
“ (2) As used in subsection (f) of this section, the term ‘insolvency’ means that
the assets of an institution are less than its obligations to its creditors and others,
including its members.
“ (3) As used in subsection (g) of this section, the term ‘vio latio n’ includes w ith­
out lim itation any action (alone or with another or others) for or toward causing,
bringing about, participating in, counseling, or aiding or abetting a violation.”
(b)
The amendment made by subsection (a) of this section shall be effective
only with respect to proceedings commenced on or after the date of enactment
of this Act. Section 407 of the National Housing Act as in effect im mediately prior
to the date of enactment of this Act shall continue in effect with respect to any
proceedings commenced prior to such date.
Sec. 103. Subsection (c) of section 408 of the National Housing Act (12 U.S.C.
1730a(c)) is amended to read:
“ (c) It shall be unlawful for any company on or after September 23, 1959—
“ (1) to acquire the control of more than one insured institution, or
“ (2) to acquire the control of an insured institution when it holds the control
of any other insured institution,
except in a transaction which has been approved by the Federal Home Loan Bank
Board upon a determ ination by it that such transaction is advisable to assist in
preventing the commencement or continuance of involuntary liquidation of the
insured institution whose control, whether by acquisition of stock or assets or
otherwise, as being acquired by such company or an insured institution which it
controls.”
TITLE II— PROVISION RELATING TO THE FEDERAL DEPOSIT INSURANCE
CORPORATION, THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE
SYSTEM, AND THE COMPTROLLER OF THE CURRENCY
Sec. 201. Paragraph (6) of subsection (j) of section 7 of the Federal Deposit
Insurance A ct (12 U.S.C. 1817(j)(6)) is repealed and section 3 of the Federal De­
posit Insurance Act (12 U.S.C. 1813) is amended by adding the follow ing new
subsection (q):
“ (q) The term ‘appropriate Federal banking agency’ shall mean (1) the Comp­
troller of the Currency in the case of a national banking association or a D istrict
bank, (2) the Board of Governors of the Federal Reserve System in the case of a




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FEDERAL DEPOSIT INSURANCE CORPORATION

State member insured bank (except a D istrict bank), and (3) the Federal Deposit
Insurance Corporation in the case of a State nonmember insured bank (except a
District bank).”
Sec. 202. Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818), is
amended by redesignating subsections (b), (c), and (d) thereof as (o), (p), and (q)
and by adding after subsection (a) thereof the follow ing new subsections (b)
through (n), inclusive:
“ (b)(1) If, in the opinion of the appropriate Federal banking agency, any insured
bank or bank which has insured deposits is engaging or has engaged, or the
agency has reasonable cause to believe that the bank is about to engage, in an
unsafe or unsound practice in conducting the business of such bank, or is violat­
ing or has violated, or the agency has reasonable cause to believe that the bank
is about to violate, a law, rule, or regulation, or any condition imposed in w riting
by the agency in connection with the granting of any application or other request
by the bank, or any written agreement entered into with the agency, the agency
may issue and serve upon the bank a notice of charges in respect thereof. The
notice shall contain a statement of the facts constituting the alleged violation or
violations or the unsafe or unsound practice or practices, and shall fix a time and
place at which a hearing will be held to determine whether an order to cease and
desist therefrom should issue against the bank. Such hearing shall be fixed for
a date not earlier than thirty days nor later than sixty days after service of such
notice unless an earlier or a later date is set by the agency at the request of the
bank. Unless the bank shall appear at the hearing by a duly authorized represent­
ative, it shall be deemed to have consented to the issuance of the cease-anddesist order. In the event of such consent, or if upon the record made at any such
hearing, the agency shall find that any violation or unsafe or unsound practice
specified in the notice of charges has been established, the agency may issue
and serve upon the bank an order to cease and desist from any such violation or
practice. Such order may, by provisions which may be mandatory or otherwise,
require the bank and its directors, officers, employees, and agents to cease and
desist from the same, and, further, to take affirmative action to correct the condi­
tions resulting from any such violation or practice.
“ (2) A cease-and-desist order shall become effective at the expiration of thirty
days after the service of such order upon the bank concerned (except in the case
of a cease-and-desist order issued upon consent, which shall become effective at
the time specified therein), and shall remain effective and enforceable as pro­
vided therein, except to such extent as it is stayed, modified, terminated, or set
aside by action of the agency or a reviewing court.
“ (c)(1) Whenever the appropriate Federal banking agency shall determine that
the violation or threatened violation or the unsafe or unsound practice or prac­
tices, specified in the notice of charges served upon the bank pursuant to para­
graph (1) of subsection (b) of this section, or the continuation thereof, is likely to
cause insolvency or substantial dissipation of assets or earnings of the bank, or
is likely to otherwise seriously prejudice the interests of its depositors, the agency
may issue a tem porary order requiring the bank to cease and desist from any
such violation or practice. Such order shall become effective upon service upon
the bank and, unless set aside, limited, or suspended by a court in proceedings
authorized by paragraph (2) of this subsection, shall remain effective and enforce­
able pending the completion of the adm inistrative proceedings pursuant to such
notice and until such time as the agency shall dismiss the charges specified in
such notice, or if a cease-and-desist order is issued against the bank, until the
effective date of any such order.
“ (2) Within ten days after the bank concerned has been served with a tem po­
rary cease-and-desist order, the bank may apply to the United States district
court for the ju dicial district in which the home office of the bank is located, or
the United States D istrict Court for the D istrict of Columbia, for an injunction
setting aside, lim iting, or suspending the enforcement, operation, or effectiveness
of such order pending the com pletion of the adm inistrative proceedings pursuant
to the notice of charges served upon the bank under paragraph (1) of subsection
(b) of this section, and such court shall have jurisdiction to issue such injunction.




FEDERAL BANKING LEGISLATION— 1966

99

“ (d) In the case of violation or threatened violation of, or failure to obey, a
tem porary cease-and-desist order issued pursuant to paragraph (1) of subsection
(c) of this section, the appropriate Federal banking agency may apply to the
United States d istrict court, or the United States court of any territory, within the
ju risdiction of which the home office of the bank is located, for an injunction to
enforce such order, and, if the court shall determine that there has been such
violation or threatened violation or failure to obey, it shall be the duty of the
court to issue such injunction.
“ (e)(1) Whenever, in the opinion of the appropriate Federal banking agency,
any director or officer of an insured State bank (other than a D istrict bank) has
committed any violation of law, rule, or regulation, or of a cease-and-desist order
which has become final, or has engaged or participated in any unsafe or unsound
practice in connection with the bank, or has com mitted or engaged in any act,
omission, or practice which constitutes a breach of his fiduciary duty as such
director or officer, and the agency determines that the bank has suffered or w ill
probably suffer substantial financial loss or other damage or that the interests of
its depositors could be seriously prejudiced by reason of such violation or prac­
tice or breach of fiduciary duty, and that such violation or practice or breach of
fiduciary duty is one involving personal dishonesty on the part of such director
or officer, the agency may serve upon such director or officer a written notice of
its intention to remove him from office.
“ (2) Whenever, in the opinion of the Com ptroller of the Currency, any director
or officer of a national banking association or a District bank has com mitted any
violation of law, rule, or regulation, or of a cease-and-desist order which has be­
come final, or has engaged or participated in any unsafe or unsound practice
in connection with the bank, or has comm itted or engaged in any act, omission,
or practice which constitutes a breach of his fiduciary duty as such director or
officer, and the Com ptroller determines that the bank has suffered or w ill prob­
ably suffer substantial financial loss or other damage or that the interests of its
depositors could be seriously prejudiced by reason of such violation or practice
or breach of fiduciary duty, and that such violation or practice or breach of
fiduciary duty is one involving personal dishonesty on the part of such director
or officer, the Com ptroller of the Currency may certify the facts to the Board of
Governors of the Federal Reserve System.
“ (3) Whenever, in the opinion of the appropriate Federal banking agency, any
director or officer of an insured State bank (other than a D istrict bank), by conduct
or practice with respect to another insured bank or other business institution which
resulted in substantial financial loss or other damage, has evidenced his personal
dishonesty and unfitness to continue as a director or officer and, whenever, in
the opinion of the appropriate Federal banking agency, any other person par­
ticipating in the conduct of the affairs of an insured State bank (other than a
District bank), by conduct or practice with respect to such bank or other insured
bank or other business institution which resulted in substantial financial loss or
other damage, has evidenced his personal dishonesty and unfitness to participate
in the conduct of the affairs of such insured bank, the agency may serve upon
such director, officer, or other person a written notice of its intention to remove
him from office a n d /o r to prohibit his further participation in any manner in the
conduct of the affairs of the bank.
“ (4) Whenever, in the opinion of the Com ptroller of the Currency, any director or
officer of a national banking association or a District bank, by conduct or practice
with respect to another insured bank or other busines institution which resulted
in substantial financial loss or other damage, has evidenced his personal dis­
honesty and unfitness to continue as a director or officer and, whenever, in the
opinion of the Com ptroller, any other person participating in the conduct of the
affairs of a national banking association or a District bank, by conduct or prac­
tice with respect to such bank or other insured bank or other business institution
which resulted in substantial financial loss or other damage, has evidenced his
personal dishonesty and unfitness to participate in the conduct of the affairs of
such bank, the Com ptroller of the Currency may certify the facts to the Board
of Governors of the Federal Reserve System.




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FEDERAL DEPOSIT INSURANCE CORPORATION

“ (5) In respect to any director or officer of an insured State bank (other than
a District bank) or any other person referred to in paragraph (1) or (3) of this
subsection, the appropriate Federal banking agency may, if it deems it necessary
for the protection of the bank or the interests of its depositors, by written notice
to such effect served upon such director, officer, or other person, suspend him
from office a n d /o r prohibit him from further participation in any manner in the
conduct of the affairs of the bank. Such suspension a n d /o r prohibition shall
become effective upon service of such notice and, unless stayed by a court in
proceedings authorized by subsection (f) of this section, shall remain in effect
pending the com pletion of the adm inistrative proceedings pursuant to the notice
served under paragraph (1) or (3) of this subsection and until such time as the
agency shall dismiss the charges specified in such notice, or, if an order of
removal a n d /o r prohibition is issued against the director or officer or other per­
son, until the effective date of any such order. Copies of any such notice shall
also be served upon the bank of which he is a director or officer or in the con­
duct of whose affairs he has participated.
“ (6) In respect to any director or officer of a national banking association or
a D istrict bank, or any other person referred to in paragraph (2) or (4) of this
subsection, the Com ptroller of the Currency may, if he deems it necessary for
the protection of the bank or the interests of its depositors that such director or
officer be suspended from office or prohibited from further participation in any
manner in the conduct of the affairs of the bank, certify the facts to the Board
of Governors of the Federal Reserve System.
“ (7) In the case of a certification to the Board of Governors of the Federal
Reserve System under paragraph (2) or (4) of this subsection, the Board may
serve upon the director, officer, or other person involved, a written notice of its
intention to remove him from office a n d /o r to prohibit him from further participation
in any manner in the conduct of the affairs of the bank. In the case of a ce rtifi­
cation to the Board of Governors of the Federal Reserve System under para­
graph (6) of this subsection, the Board may by written notice to such effect
served upon such director, officer, or other person, suspend him from office a n d /o r
prohibit him from further participation in any manner in the conduct of the
affairs of the bank. Such suspension a n d /o r prohibition shall become effective
upon service of such notice and, unless stayed by a court in proceedings author­
ized by subsection (f) of this section, shall remain in effect pending the com ple­
tion of the adm inistrative proceedings pursuant to the notice served under the
first sentence of this paragraph and until such time as the Board shall dismiss the
charges specified in such notice, or, if an order of removal a n d /o r prohibition is
issued against the director or officer or other person, until the effective date of
any such order. Copies of any such notice shall also be served upon the bank
of which he is a director or officer or in the conduct of whose affairs he has
participated. For the purposes of this paragraph and paragraph (8) of this sub­
section, the Com ptroller of the Currency shall be entitled in any case involving
a national bank or a District bank to sit as a member of the Board of Governors
of the Federal Reserve System and to participate in its deliberations on any
such case and to vote thereon in all respects as a member of such Board.
“ (8) A notice of intention to remove a director, officer, or other person from
office a n d /o r to prohibit his participation in the conduct of the affairs of an in­
sured bank, shall contain a statement of the facts constituting grounds therefor,
and shall fix a time and place at which a hearing will be held thereon. Such
hearing shall be fixed for a date not earlier than thirty days nor later than sixty
days after the date of service of such notice, unless an earlier or a later date is
set by the agency at the request of (A) such director or officer or other person,
and for good cause shown, or (B) the Attorney General of the United States.
Unless such director, officer, or other person shall appear at the hearing in person
or by a duly authorized representative, he shall be deemed to have consented to
the issuance of an order of such removal a n d /o r prohibition. In the event of such
consent, or if upon the record made at any such hearing the agency shall find
that any of the grounds specified in such notice has been established, the agency
may issue such orders of suspension or removal from office, a n d /o r prohibition




FEDERAL BANKING LEGISLATION— 1966

101

from participation in the conduct of the affairs of the bank, as it may deem
appropriate. Any such order shall become effective at the expiration of thirty days
after service upon such bank and the director, officer, or other person concerned
(except in the case of an order issued upon consent, which shall become effec­
tive at the time specified therein). Such order shall remain effective and enforce­
able except to such extent as it is stayed, modified, terminated, or set aside by
action of the agency or a reviewing court.
“ (f) Within ten days after any director, officer, or other person has been
suspended from office a n d /o r prohibited from participation in the conduct of the
affairs of an insured bank under subsection (e)(5) or (e)(7) of this section, such
director, officer, or other person may apply to the United States d istrict court
for the judicial district in which the home office of the bank is located, or the
United States D istrict Court for the District of Columbia, for a stay of such sus­
pension a n d /o r prohibition pending the completion of the adm inistrative proceed­
ings pursuant to the notice served upon such director, officer, or other person
under subsection (e)(1), (e)(3), or (e)(7) of this section, and such court shall have
ju risdiction to stay such suspension a n d /o r prohibition.
“ (g)(1) Whenever any director or officer of an insured bank, or other person
participating in the conduct of the affairs of such bank, is charged in any infor­
mation, indictment, or com plaint authorized by a United States attorney, with the
commission of or participation in a felony involving dishonesty or breach of trust,
the appropriate Federal banking agency may, by written notice served upon such
director, officer, or other person suspend him from office a n d /o r prohibit him
from further participation in any manner in the conduct of the affairs of the
bank. A copy of such notice shall also be served upon the bank. Such suspen­
sion a n d /o r prohibition shall remain in effect until such inform ation, indictm ent,
or com plaint is finally disposed of or until terminated by the agency. In the
event that a judgm ent of conviction with respect to such offense is entered against
such director, officer, or other person, and at such time as such judgm ent is
not subject to further appellate review, the agency may issue and serve upon
such director, officer, or other person an order removing him from office a n d /o r
prohibiting him from further participation in any manner in the conduct of the
affairs of the bank except with the consent of the appropriate agency. A copy
of such order shall also be served upon such bank, whereupon such director or
officer shall cease to be a director or officer of such bank. A finding of not
guilty or other disposition of the charge shall not preclude the agency from
thereafter instituting proceedings to remove such director, officer, or other per­
son from office a n d /o r to prohibit further participation in bank affairs, pursuant
to paragraph (1), (2), (3), (4), or (7) of subsection (e) of this section.
“ (2) If at any time, because of the suspension of one or more directors pursuant
to this section, there shall be on the board of directors of a national bank less
than a quorum of directors not so suspended, all powers and functions vested in
or exercisable by such board shall vest in and be exercisable by the director
or directors on the board not so suspended, until such time as there shall be a
quorum of the board of directors. In the event all of the directors of a national
bank are suspended pursuant to this section, the Com ptroller of the Currency
shall appoint persons to serve tem porarily as directors in their place and stead
pending the term ination of such suspensions, or until such time as those who
have been suspended, cease to be directors of the bank and their respective
successors take office.
“ (h)(1) Any hearing provided for in this section shall be held in the Federal
judicial d istrict or in the territory in which the home office of the bank is located
unless the party afforded the hearing consents to another place, and shall be con­
ducted in accordance with the provisions of chapter 5 of title 5 of the United
States Code. Such hearing shall be private, unless the appropriate Federal banking
agency, in its discretion, after fully considering the views of the party afforded
the hearing, determines that a public hearing is necessary to protect the public
interest. After such hearing, and within ninety days after the appropriate Federal
banking agency or Board of Governors of the Federal Reserve System has noti­
fied the parties that the case has been submitted to it for final decision, it shall




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FEDERAL DEPOSIT INSURANCE CORPORATION

render its decision (which shall include findings of fact upon which its decision is
predicated) and shall issue and serve upon each party to the proceeding an
order or orders consistent with the provisions of this section. Judicial review
of any such order shall be exclusively as provided in this subsection (h). Unless
a petition for review is tim ely filed in a court of appeals of the United States, as
hereinafter provided in paragraph (2) of this subsection, and thereafter until the
record in the proceeding has been filed as so provided, the issuing agency may at
any time, upon such notice and in such manner as it shall deem proper, modify,
terminate, or set aside any such order. Upon such filing of the record, the
agency may modify, terminate, or set aside any such order with permission of
the court.
“ (2) Any party to the proceeding, or any person required by an order issued
under this section to cease and desist from any of the violations or practices
stated therein, may obtain a review of any order served pursuant to paragraph (1)
of this subsection (other than an order issued with the consent of the bank or the
director or officer or other person concerned, or an order issued under paragraph (1)
of subsection (g) of this section) by the filing in the court of appeals of the
United States for the circu it in which the home office of the bank is located,
or in the United States Court of Appeals for the District of Columbia Circuit,
within thirty days after the date of service of such order, a written petition praying
that the order of the agency be modified, terminated, or set aside. A copy of such
petition shall be forthwith transm itted by the clerk of the court to the agency, and
thereupon the agency shall file in the court the record in the proceeding, as pro­
vided in section 2112 of title 28 of the United States Code. Upon the filing of such
petition, such court shall have jurisdiction, which upon the filing of the record
shall except as provided in the last sentence of said paragraph (1) be exclusive, to
affirm, modify, terminate, or set aside, in whole or in part, the order of the agency.
Review of such proceedings shall be had as provided in chapter 7 of title 5 of
the United States Code. The judgm ent and decree of the court shall be final, ex­
cept that the same shall be subject to review by the Supreme Court upon cer­
tiorari, as provided in section 1254 of title 28 of the United States Code.
“ (3) The commencement of proceedings for judicial review under paragraph (2)
of this subsection shall not, unless specifically ordered by the court, operate
as a stay of any order issued by the agency.
“ (i) The appropriate Federal banking agency may in its discretion apply to
the United States d istrict court, or the United States court of any territory, within
the ju risdiction of which the home office of the bank is located, for the enforce­
ment of any effective and outstanding notice or order issued under this section,
and such courts shall have jurisdiction and power to order and require com pli­
ance herewith; but except as otherwise provided in this section no court shall
have ju risdiction to affect by injunction or otherwise the issuance or enforcement
of any notice or order under this section, or to review, modify, suspend, term i­
nate, or set aside any such notice or order.
“ (j) Any director or officer, or form er director or officer of an insured bank, or
any other person, against whom there is outstanding and effective any notice or
order (which is an order which has become final) served upon such director,
officer, or other person under subsections (e)(5), (e)(7), (e)(8), or (g) of this
section, and who (i) participates in any manner in the conduct of the affairs
of the bank involved, or directly or indirectly solicits or procures, or transfers or
attempts to transfer, or votes or attempts to vote, any proxies, consents, or au­
thorizations in respect of any voting rights in such bank, or (ii) without the prior
written approval of the appropriate Federal banking agency, votes for a director,
serves or acts as a director, officer, or employee of any bank, shall upon convic­
tion be fined not more than $5,000 or imprisoned for not more than one year, or
both.
“ (k) As used in this section (1) the terms ‘cease-and-desist order which has
become fin a l’ and ‘order which has become fin a l’ mean a cease-and-desist
order, or an order, issued by the appropriate Federal banking agency with the
consent of the bank or the director or officer or other person concerned, or with
respect to which no petition for review of the action of the agency has been filed




FEDERAL BANKING LEGISLATION— 1966

103

and perfected in a court of appeals as specified in paragraph (2) of subsection
(h), or with respect to which the action of the court in which said petition is
so filed is not subject to further review by the Supreme Court of the United States
in proceedings provided for in said paragraph, or an order issued under paragraph
(1) of subsection (g) of this section, and (2) the term ‘vio latio n’ includes without
lim itation any action (alone or with another or others) for or toward causing,
bringing about, participating in, counseling, or aiding or abetting a violation.
“ (I) Any service required or authorized to be made by the appropriate Federal
banking agency under this section may be made by registered mail, or in such
other manner reasonably calculated to give actual notice as the agency may
by regulation or otherwise provide. Copies of any notice or order served by the
agency upon any State bank or any director or officer thereof or other person
participating in the conduct of its affairs, pursuant to the provisions of this sec­
tion, shall also be sent to the appropriate State supervisory authority.
“ (m) In connection with any proceeding under subsection (b), (c)(1), or (e) of
this section involving an insured State bank or any director or officer or other
person participating in the conduct of its affairs, the appropriate Federal banking
agency shall provide the appropriate State supervisory authority with notice of
the agency’s intent to institute such a proceeding and the grounds therefor. Unless
within such time as the Federal banking agency deems appropriate in the light of
the circum stances of the case (which time must be specified in the notice pre­
scribed in the preceding sentence) satisfactory corrective action is effectuated
by action of the State supervisory authority, the agency may proceed as pro­
vided in this section. No bank or other party who is the subject of any notice or
order issued by the agency under this section shall have standing to raise the
requirements of this subsection as ground for attacking the validity of any such
notice or order.
“ (n) In the course of or in connection with any proceeding under this section,
the agency conducting the proceeding, or any member or designated representa­
tive thereof, including any person designated to conduct any hearing under this
section, shall have the power to adm inister oaths and affirmations, to take or
c^use to be taken depositions, and to issue, revoke, quash, or modify subpenas
and subpenas duces tecum; and such agency is empowered to make rules and regu­
la tio n s with respect to any such proceedings. The attendance of witnesses and
the production of documents provided for in this subsection may be required from
any place in any State or in any territory or other place subject to the jurisdiction
of the United States at any designated place where such proceeding is being
conducted. Any party to proceedings under this section may apply to the United
States District Court for the District of Columbia, or the United States district
court for the judicial district or the United States court in any territory in which
such proceeding is being conducted, or where the witness resides or carries on
business, for enforcem ent of any subpena or subpena duces tecum issued pur­
suant to this subsection, and such courts shall have jurisdiction and power to
order and require com pliance therewith. Witnesses subpenaed under this section
shall be paid the same fees and mileage that are paid witnesses in the d istrict
courts of the United States. Any court having jurisdiction of any proceeding insti­
tuted under this section by an insured bank or a director or officer thereof, may
allow to any such party such reasonable expenses and attorneys’ fees as it deems
just and proper; and such expenses and fees shall be paid by the bank or from
its assets.”
Sec. 203. Subsections (b) and (c) of section 10 of the Federal Deposit Insur­
ance Act (12 U.S.C. 1820 (b), (c)) are amended to read as follows:
“ (b) The Board of Directors shall appoint examiners who shall have power, on
behalf of the Corporation, to examine any insured State nonmember bank (except
a District bank), any State nonmember bank making application to become an
insured bank, and any closed insured bank, whenever in the judgm ent of the
Board of Directors an examination of the bank is necessary. In addition to the
examinations provided for in the preceding sentence, such examiners shall have
like power to make a special examination of any State member bank and any
national bank or D istrict bank, whenever in the judgm ent of the Board of Directors




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FEDERAL DEPOSIT INSURANCE CORPORATION

such special examination is necessary to determine the condition of any such
bank for insurance purposes. In making examinations of insured banks, exam­
iners appointed by the Corporation shall have power on behalf of the Corporation
to make such examinations of the affairs of all affiliates of such banks as shall be
necessary to disclose fully the relations between such banks and their affiliates
and the effect of such relations upon such banks. Each examiner shall have
power to make a thorough examination of all of the affairs of the bank and its
affiliates, and shall make a full and detailed report of the condition of the bank
to the Corporation. The Board of Directors in like manner shall appoint claim
agents who shall have power to investigate and examine all claims for insured
deposits. Each claim agent shall have power to adm inister oaths and affirmations
and to examine and to take and preserve testimony under oath as to any matter
in respect to claims for insured deposits, and to issue subpenas and subpenas
duces tecum, and, for the enforcement thereof, to apply to the United States dis­
trict court for the judicial district or the United States court in any territory in
which the main office of the bank or affiliate thereof is located, or in which the
witness resides or carries on business. Such courts shall have jurisdiction and
power to order and require com pliance with any such subpena.
“ (c) In connection with examinations of insured banks, and affiliates thereof,
the appropriate Federal banking agency, or its designated representatives, shall
have the power to adm inister oaths and affirmations and to examine and to take
and preserve testim ony under oath as to any matter in respect of the affairs or
ownership of any such bank or affiliate thereof, and to issue subpenas and sub­
penas duces tecum, and, for the enforcement thereof, to apply to the United
States district court for the ju dicial district or the United States court in any
territory in which the main office of the bank or affiliate thereof is located, or in
which the witness resides or carries on business. Such courts shall have ju ris d ic ­
tion and power to order and require com pliance with any such subpena. For pur­
poses of this section, the term ‘affiliate’ shall have the same meaning as where
used in section 2(b) of the Banking Act of 1933 (12 U.S.C. 221 a(b)) except that
the term ‘member bank’ in said section 2(b) shall be deemed to refer to an in­
sured bank.”
Sec. 204. The first five sentences of section 8(a) of the Federal Deposit Insur­
ance Act (12 U.S.C. 1818(a)) are amended to read as follows:
“ Sec. 8. (a) Any insured bank (except a national member bank or State mem­
ber bank) may, upon not less than ninety days’ written notice to the Corporation,
terminate its status as an insured bank. Whenever the Board of Directors shall
find that an insured bank or its directors or trustees have engaged or are engag­
ing in unsafe or unsound practices in conducting the business of such bank, or
is in an unsafe or unsound condition to continue operations as an insured bank,
or violated an applicable law, rule, regulation or order, or any condition imposed
in writing by the Corporation in connection with the granting of any application
or other request by the bank, or any written agreement entered into with the Cor­
poration, the Board of Directors shall first give to the Com ptroller of the Currency
in the case of a national bank or a district bank, to the authority having super­
vision of the bank in the case of a State bank, and to the Board of Governors of
the Federal Reserve System in the case of a State member bank, a statement with
respect to such practices or violations for the purpose of securing the correction
thereof and shall give a copy thereof to the bank. Unless such correction shall be
made within one hundred and twenty days, or such shorter period not less than
twenty days fixed by the Corporation in any case where the Board of Directors in
its discretion has determined that the insurance risk of the Corporation is unduly
jeopardized, or fixed by the Com ptroller of the Currency in the case of a national
bank, or the State authority in the case of a State bank, or Board of Governors
of the Federal Reserve System in the case of a State member bank as the case
may be, the Board of Directors, if it shall determine to proceed further, shall give
to the bank not less than thirty days’ written notice of intention to term inate the
status of the bank as an insured bank, and shall fix a time and place for a hear­
ing before the Board of Directors or before a person designated by it to conduct




FEDERAL BANKING LEGISLATION— 1966

105

such hearing, at which evidence may be produced, and upon such evidence the
Board of Directors shall make written findings which shall be conclusive. If the
Board of Directors shall find that any unsafe or unsound practice or condition or
violation specified in such statement has been established and has not been cor­
rected within the time above prescribed in which to make such corrections, the
Board of Directors may order that the insured status of the bank be terminated
on a date subsequent to such finding and to the expiration of the time specified
in such notice of intention. Unless the bank shall appear at the hearing by a duly
authorized representative, it shall be deemed to have consented to the term ina­
tion of its status as an insured bank and term ination of such status thereupon
may be ordered. Any insured bank whose insured status has been term inated by
order of the Board of Directors under this subsection shall have the right of ju d i­
cial review of such order only to the same extent as provided for the review of
orders under subsection (h) of this section.”
Sec. 205. Subsection “ Fourth” of section 9 of the Federal Deposit Insurance
Act (12 U.S.C. 1819 “ Fourth” ) is amended to read as follows:
“ Fourth. To sue and be sued, complain and defend, in any court of law or
equity, State or Federal. All suits of a civil nature at common law or in equity to
which the Corporation shall be a party shall be deemed to arise under the laws
of the United States, and the United States d istrict courts shall have original ju ris­
diction thereof, without regard to the amount in controversy; and the Corporation
may, without bond or security, remove any such action, suit, or proceeding from
a State court to the United States district court for the district or division em­
bracing the place where the same is pending by following any procedure for
removal now or hereafter in effect, except that any such suit to which the Corpo­
ration is a party in its capacity as receiver of a State bank and which involves
only the rights or obligations of depositors, creditors, stockholders, and such
State bank under State law shall not be deemed to arise under the laws of the
United States. No attachment or execution shall be issued against the Corpora­
tion or its property before final judgm ent in any suit, action, or proceeding in any
State, county, m unicipal, or United States court. The Board of Directors shall
designate an agent upon whom service of process may be made in any State,
Territory, or ju risdiction in which any insured bank is located.”
Sec. 206. Nothing contained in this title shall be construed to repeal, modify,
or affect the provisions of section 19 of the Federal Deposit Insurance Act (12
U.S.C. 1829).
Sec. 207. Section 30 of the Banking Act of 1933 (12 U.S.C. 77) is hereby re­
pealed.
TITLE III— INCREASE IN INSURANCE LIMIT
Federal Deposit Insurance Corporation
Sec. 301. (a) The first sentence of section 3(m) of the Federal Deposit In­
surance Act (12 U.S.C. 1813(m)) is amended by changing “ $103
000” to read
“ $15,000” .
(b) The first sentence of section 7(i) of the Federal Deposit Insurance Act (12
U.S.C. 1817 (i)) is amended by changing “ $10,000” to read “ $15,000” .
(c) The last sentence of section 11(a) of the Federal Deposit Insurance Act (12
U.S.C. 1821(a)) is amended to read: “ The maximum amount of the insured de­
posit of any depositor shall be $15,000.”
(d) The fifth sentence of section 11 (i) of the Federal Deposit Insurance A ct (12
U.S.C. 1821 (i)) is amended by changing “ $10,000” to read “ $15,000” .
(e) The amendments made by this section shall not be applicable to any claim
arising out of the closing of a bank where such closing is prior to the date of
enactment of this Act.
Federal Savings and Loan Insurance Corporation
Sec. 302. (a) Section 401(b) of title IV of the National Housing Act (12 U.S.C.
1724(b)) is amended by changing “ $10,000” to read “ $15,000” each place it




FEDERAL DEPOSIT INSURANCE CORPORATION

106

appears therein.
(b) Section 405(a) of title IV of the National Housing Act (12 U.S.C. 1728(a)) is
amended by changing “ $10,000” to read “ $15,000” .
(c) The amendments made by this section shall not be applicable to any claim
arising out of a default, as defined in section 401(d) of the National Housing Act,
where the appointm ent of a conservator, receiver, or other legal custodian as set
forth in that section becomes effective prior to the date of enactment of this Act.
Adm inistrative Authority
Sec. 303. (a) Section 3(m) of the Federal Deposit Insurance Act (12 U.S.C.
1813(m)) is amended by adding the follow ing new sentence at the end: “ For the
purpose of clarifying and defining the insurance coverage under this subsection
and subsection (i) of section 7, the Corporation is authorized to define, with such
classifications and exceptions as it may prescribe, terms used in those subsec­
tions, in subsection (p) of section 3, and in subsections (a) and (i) of section 11
and the extent of the insurance coverage resulting therefrom .”
(b)
Section 405(a) of title IV of the National Housing Act (12 U.S.C. 1728(a)) is
amended by adding the follow ing new sentence at the end: “ For the purpose of
clarifying and defining the insurance coverage under this subsection and subsec­
tion (b) of section 401, the Corporation is authorized to define, with such classifi­
cations and exceptions as it may prescribe, terms used in those subsections and
in subsection (c) of section 401 and the extent of the insurance coverage result­
ing therefrom .”
TITLE IV— EXPIRATION
Sec. 401. The provisions of titles I and II of this Act and any provisions of iaw
enacted by said titles shall be effective only during the period ending at the
close of June 30, 1972. Effective upon the expiration of such period, each provi­
sion of law amended by either of such titles is further amended to read as it did
immediately prior to the enactment of this Act and each provision of law repealed
by either of such titles in reenacted.
Approved O ctober 16, 1966.

RULES AND REGULATIONS OF THE CORPORATION AND
STATEMENTS OF GENERAL POLICY— 1966
TITLE 12— BANKS AND BANKING
CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION
PART 336— EMPLOYEE RESPONSIBILITIES AND CONDUCT
The Federal Deposit Insurance Corporation hereby adopts a new Part 336 of its
rules and regulations (12 CFR Part 301, et seq.), pursuant to the provisions of
Executive Order 11222 of May 8, 1965.
The new Part 336 reads as follows:
SUBPART A— GENERAL PROVISIONS
Sec.
336.735-1
336.735-2
336.735-3

Purpose.
Definitions.
Effective date, distribution, and counseling.

SUBPART B— ETHICAL AND OTHER CONDUCT AND RESPONSIBILITIES OF
EMPLOYEES
336.735-11
336.735-12
336.735-13

Gifts, entertainment, and favors.
Outside employment.
Financial interests.




RULES AND REGULATIONS OF THE CORPORATION
336.735-14
336.735-15
336.735-16
336.735-17
336.735-18
336.735-19

107

Use of Corporation property.
Misuse of information.
Indebtedness.
Gambling, betting, and lotteries.
General conduct prejudicial to the Government.
Miscellaneous statutory provisions.

SUBPART C— ETHICAL AND OTHER CONDUCT AND RESPONSIBILITIES OF
SPECIAL CORPORATION EMPLOYEES
336.735-21
336.735-22
336.735-23
336.735-24
336.735-25

Use of Corporation employment.
Use of inside information.
Coercion.
Gifts, entertainment, and favors.
Miscellaneous statutory provisions.

SUBPART D— STATEMENTS OF EMPLOYMENT AND FINANCIAL INTERESTS
336.735-31 Employees required to submit statements.
336.735-32 Employees not required to submit statements.
336.735-33 Time and place for submission of em ployees’ statements.
336.735-34 Supplementary statements.
336.735-35 Interests of em ployees’ relatives.
336.735-36 Information not known by employees.
336.735-37 Information prohibited.
336.735-38 Confidentiality of employees’ statements.
336.735-39 Effect of em ployees’ statements on other requirements.
336.735-40 Specific provisions of regulations for special Corporation employees.
336.735-41 Reviewing statements and reporting conflicts of interest.
336.735-42 D isciplinary and other remedial action.
Authority: The provisions of this Part 336 issued under E.O. 11222 of May 8,
1965, 30 F.R. 6469, 3 CFR, 1965 Supp.; 5 CFR 735.104.
SUBPART A— GENERAL PROVISIONS
§336.735-1 Purpose.
The maintenance of unusually high standards of honesty, integrity, im partiality,
and conduct by Corporation employees and special Corporation employees is
essential to assure the proper performance of the Corporation business and the
maintenance of confidence by citizens in their Government. The avoidance of
misconduct and conflicts of interests on the part of Corporation employees and
special Corporation employees through informed judgm ent is indispensable to
the maintenance of these standards. To accord with these concepts, this part sets
forth the C orporation’s regulations covering the C orporation’s employees and
special Corporation employees, prescribing standards of conduct and responsi­
bilities, and governing statements reporting employment and financial interests.
§336.735-2

Definitions.

In this part:
(a) “ Em ployee” means an officer or employee of the Corporation, but does not
include a special Corporation employee.
(b) “ Executive ord er” means Executive Order 11222 of May 8, 1965.
(c) “ Person” means an individual, a bank, a corporation, a company, an asso­
ciation, a firm, a partnership, a society, a jo int stock company, or any other
organization or institution.
(d) “ Special Corporation em ployee” means a “ special Government em ployee”
as defined in section 202 of Title 18 of the United States Code.
§336.735-3 Effective date, distribu tion, and counseling.
(a) This part and any amendment thereto shall be effective after approval by
the Civil Service Commission and upon publication in the Federal Register.
(b) The Personnel Division of the Corporation shall distribute one copy (and




108

FEDERAL DEPOSIT INSURANCE CORPORATION

supply additional copies on request) of this part to every employee and every
special Corporation employee within 90 days after the effective date, and to each
new employee and special Corporation employee at the time of entrance on
duty, and distribute to every employee and every special Corporation employee
each calendar year thereafter a reminder of the basic provisions of this part.
(c) A Counselor designated herein and Deputy Counselors, appointed by the
Chairman of the Board, shall be available for counseling and guidance respecting
statutes and regulations affecting employee responsibility and conduct, including
interpretations of the provisions of this part, and each employee a,nd special Cor­
poration employee shall be notified of this service by the Personnel Division at
the time he receives a copy of this part.
(d) The Assistant to the Chairman of the Board of Directors of the Corporation
shall act as the C orporation’s Counselor.
SUBPART B— ETHICAL AND OTHER CONDUCT AND RESPONSIBILITIES OF
EMPLOYEES
§336.735-11 G ifts, entertainm ent, and favors.
(a) Except as provided in paragraph (b) of this section, an employee shall not
solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainm ent,
loan, or any other thing of monetary value, from a person who:
(1) Has, or is seeking to obtain, contractual or other business or financial rela­
tions with the Corporation;
(2) Conducts operations or activities that are regulated or examined or may be
regulated or examined by the Corporation;
(3) Has interests that may be substantially affected by the performance or non­
performance of his official duty.
(b) Paragraph (a) of this section shall not apply:
(1) Where obvious family or personal relationships govern (such as those be­
tween the parents, children, or spouse of the employee and the employee) when
the circum stances make it clear that it is those relationships rather than the
business of the persons concerned which are the motivating factors;
(2) To the acceptance of food, refreshments, and accompanying entertainment
of nominal value on infrequent occasions in the ordinary course of a luncheon or
dinner meeting or other function or on an inspection tour where an employee is
properly in attendance;
(3) The acceptance of lodging on rare or infrequent occasions where an em­
ployee is properly in attendance and circum stances thereof are reported to the
Corporation;
(4) To the acceptance of unsolicited advertising or promotional material, such
as pens, pencils, note pads, calendars, and other items of nominal intrinsic value;
and
(5) To the acceptance of loans from banks or other financial institutions on
customary terms to finance proper and usual activities of employees, such as
home mortgage loans. However, a Corporation examiner or assistant examiner
shall not accept a loan or gratuity from any bank examined by him or any bank
he has the authority to examine or from any person connected therewith (18
U.S.C. 212 and 213).
(c) An employee shall avoid any action, whether or not specifically prohibited
by this subpart which might result in, or create the appearance of:
(1) Using public office for private gain;
(2) Giving preferential treatm ent to any person;
(3) Impeding Corporation efficiency or economy;
(4) Losing complete independence or im partiality;
(5) Making a Corporation decision outside official channels; or
(6) Affecting adversely the confidence of the public in the integrity of the Cor­
poration.
(d) An employee shall not solicit contributions from another employee for a
gift to an employee in a superior official position. An employee in a superior o ffi­
cial position shall not accept a gift presented as a contribution from employees




RULES AND REGULATIONS OF THE CORPORATION

109

receiving less salary than himself. An employee shall not make a donation as a
gift to an employee in a superior official position (5 U.S.C. 113).
(e)
An employee shall not accept a gift, present, decoration, or other thing
from a foreign government unless authorized by Congress as provided by the
Constitution and in 5 U.S.C. 114-115a.
§336.735-12 Outside employment.
(a) An employee shall not engage in outside employment or other outside ac­
tivity not com patible with the full and proper discharge of the duties and respon­
sibilities of his Corporation employment. Incom patible activities include but are
not limited to:
(1) Acceptance of a fee, compensation, gift, payment of expense, or any other
thing of monetary value in circum stances in which acceptance may result in, or
create the appearance of, conflicts of interests; or
(2) Outside employment which tends to impair his mental or physical capacity
to perform his Corporation duties and responsibilities in an acceptable manner.
(b) An employee shall not receive any salary or anything of monetary value
from a private source as compensation for his services to the Corporation (18
U.S.C. 209).
(c) A Corporation examiner or assistant examiner shall not perform any other
service, for compensation, for any bank, or for any person connected therewith
(18 U.S.C. 1909).
(d) Employees are encouraged to engage in teaching, lecturing, speaking and
w riting relating to the C orporation’s functions or responsibilities. However, an
employee shall not, either for or without compensation, engage in any such
activity that is dependent on information obtained as a result of his Corporation
employment except when that information has been made available to the gen­
eral public or will be made available on request, or when the Corporation Chair­
man gives written authorization for use of nonpublic information on the basis
that the use is in the public interest. And no employee shall write for publication
or accept invitations to speak before banking or other public organizations on
matters concerning the Corporation without prior approval and prior clearance of
their manuscript by the Corporation. In addition, an employee who is a Presi­
dential appointee covered by section 401(a) of the Executive Order shall not
receive compensation or anything of monetary value for any consultation, lec­
ture, discussion, writing, or appearance, the subject matter of which is devoted
substantially to the responsibilities, programs, or operations of the Corporation,
or which draws substantially on official data or ideas which have not become
part of the body of public information.
(e) An employee shall not engage in outside employment under a State or
local government, except in accordance with Part 734 of the Civil Service Regu­
lations (5 CFR Part 734).
(f) This section does not preclude an employee from:
(1) Receipt of bona fide reimbursement, unless prohibited by law, for actual
expenses for travel and such other necessary subsistence as is com patible with
this part for which no Corporation payment or reimbursement is made. However,
an employee may not be reimbursed, and payment may not be made on his be­
half, for excessive personal living expenses, or other personal benefits.
(2) Participation in the activities of National or State political parties not pro­
scribed by law.
(3) Participation in the affairs of or acceptance of an award for a m eritorious
public contribution or achievement given by a charitable, religious, professional,
social, fraternal, nonprofit educational and recreational, public service, or civic
organization.
§336.735-13 Financial interests.
(a) An employee shall not:
(1) Own, directly or indirectly, or control the ownership of stock in an insured
bank, without approval of the Board of Directors of the Corporation.
(2) Have a direct or indirect financial interest that conflicts substantially, or




FEDERAL DEPOSIT INSURANCE CORPORATION

110

appears to conflict substantially, with his Corporation duties and responsibilities;
or
(3)
Engage in, directly or indirectly, a financial transaction as a result of, or
prim arily relying on, information obtained through his Corporation employment.
(b)
This section does not preclude an employee from having a financial inter­
est or engaging in financial transactions to the same extent as a private citizen
not employed by the Corporation so long as it is not prohibited by law, the
Executive Order, this section, or the regulations in this part.
§336.735-14

Use of Corporation property.

An employee shall not directly or indirectly use, or allow the use of, Corpora­
tion property of any kind, including property leased to the Corporation, for other
than officially approved activities. An employee has a positive duty to protect and
conserve Corporation property, including equipment, supplies, and other property
entrusted or issued to him.
§336.735-15 Misuse of inform ation.
For the purpose of furthering a private interest, an employee shall not, except
as provided in §336.735-12(d), directly or indirectly use, or allow the use of, offi­
cial information obtained through or in connection with his Corporation em ploy­
ment which has not been made available to the general public.
§336.735-16

Indebtedness.

An employee shall pay each just financial obligation in a proper and tim ely
manner, especially one imposed by law such as Federal, State, or local taxes.
For the purpose of this section, a “ just financial ob lig atio n” means one acknow l­
edged by the employee or reduced to judgm ent by a court, and “ in a proper
and timely manner” means in a manner that the Corporation w ill not be called
upon to assist a creditor in the collection of a just financial obligation, and which
the Corporation determines does not, under the circumstances, reflect adversely
on it as the employer. In the event of dispute between an employee and an
alleged creditor, this section does not require the Corporation to determine the
validity or amount of the disputed debt.
§336.735-17 Gambling, betting, and lotteries.
An employee shall not participate, while on Corporation-owned or leased prop­
erty or while on duty for the Corporation, in any gambling activity including the
operation of a gambling device, in conducting a lottery or pool, in a game for
money or property, or in selling or purchasing a numbers slip or ticket. However,
this section does not preclude activities:
(a) Necessitated by an em ployee’s law enforcem ent duties; or
(b) Under section 3 of Executive Order 10927 and sim ilar Corporation-approved
activities.
§336.735-18

General conduct p re ju dicial to the Government.

An employee shall not engage in crim inal, infamous, dishonest, immoral, or
notoriously disgraceful conduct, or other conduct prejudicial to the Corporation.
§336.735-19

Miscellaneous statutory provisions.

Each employee shall acquaint himself with each statute that relates to his
ethical and other conduct as an employee of the Corporation and of the Govern­
ment. In addition to the statutes cited in the body of these regulations the atten­
tion of each employee is directed to the follow ing statutory provisions:
(a) House Concurrent Resolution 175, 85th Congress, 2d Session, 72 Stat. B12,
the “ Code of Ethics for Government Service.”
(b) Chapter 11 of title 18, United States Code, relating to bribery, graft, and
conflicts of interest, as appropriate to the employees concerned.
(c) The prohibition against lobbying with appropriated funds (18 U.S.C. 1913).
(d) The prohibitions against disloyalty and striking (5 U.S.C. 118p, 118r).
(e) The prohibition against the employment of a member of a Communist or­
ganization (50 U.S.C. 784).




RULES AND REGULATIONS OF THE CORPORATION

111

(f) The prohibitions against (1) the disclosure of classified information (18
U.S.C. 798, 50 U.S.C. 783); and (2) the disclosure of confidential inform ation (18
U.S.C. 1905).
(g) The provision relating to the habitual use of intoxicants to excess (5 U.S.C.
640).
(h) The prohibition against the misuse of a Government vehicle (5 U.S.C. 78c).
(i) The prohibition against the misuse of the franking privilege (18 U.S.C. 1719).
(j) The prohibition against the use of deceit in an examination or personnel
action in connection with Government employment (5 U.S.C. 637).
(k) The prohibition against fraud or false statements in a Government matter
(18 U.S.C. 1001).
(I)
The prohibition against m utilating or destroying a public record (18 U.S.C.
2071).
(m) The prohibition against counterfeiting and forging transportation requests
(18 U.S.C. 508).
(n) The prohibitions against (1) embezzlement of Government money or prop­
erty (18 U.S.C. 641); (2) failing to account for public money (18 U.S.C. 643); and
(3) embezzlement of the money or property of another person in the possession
of an employee by reason of his employment (18 U.S.C. 654).
(o)
The prohibition against unauthorized use of documents relating to claims
from or by the Government (18 U.S.C. 285).
(p) The prohibition against proscribed political activities— The Hatch Act (5
U.S.C. 118i), and 18 U.S.C. 602, 603, 607, and 608.
(q) The prohibition against the disclosure of information by a bank examiner
(18 U.S.C. 1906).
SUBPART C— ETHICAL AND OTHER CONDUCT AND RESPONSIBILITIES OF
SPECIAL CORPORATION EMPLOYEES
§336.735-21

Use of Corporation employment.

A special Corporation employee shall not use his Corporation em ployment for
a purpose that is, or gives the appearance of being, motivated by the desire for
private gain for himself or another person, particularly one with whom he has
family, business, or financial ties.
§336.735-22 Use of inside information.
(a) A special Corporation employee shall not use inside inform ation obtained
as a result of his Government employment for private gain for himself or another
person either by direct action on his part or by counsel, recommendation, or sug­
gestion to another person, particularly one with whom he has family, business, or
financial ties. For the purpose of this section, “ inside inform ation” means infor­
mation obtained under Corporation authority which has not become part of the
body of public information.
(b) A special Corporation employee may teach, lecture, or write in a manner
not inconsistent with §336.735-12(d) in regard to employees.
§336.735-23

Coercion.

A special Corporation employee shall not use his Corporation employment to
coerce, or give the appearance of coercing, a person to provide financial benefit
to himself or another person, particularly one with whom he has family, business,
or financial ties.
§336.735-24

G ifts, entertainment, and favors.

(a) Except as provided in paragraph (b) of this section, a special Corporation
employee, while so employed or in connection with his employment, shall not
receive or solicit from a person having business with this Corporation anything of
value as a gift, gratuity, loan, entertainment, or favor for himself or another per­
son, particularly one with whom he has family, business, or financial ties.
(b) Exemptions to paragraph (a) of this section are the same as those author­
ized to employees under §336.735-11 (b).




FEDERAL DEPOSIT INSURANCE CORPORATION

112

§336.735-25 Miscellaneous statutory provisions.
Each special Corporation employee shall acquaint himself with each statute
that relates to his ethical and other conduct as a special Corporation employee
of the Corporation and of the Government. In addition to the statutes cited in the
body of the regulations in this part, the attention of each special Corporation
employee is directed to the statutory provisions listed in §336.735-19.
SUBPART D— STATEMENTS OF EMPLOYMENT AND FINANCIAL INTERESTS
§336.735-31

Employees required to subm it statements.

(a) Except as provided in §336.735-32, the following employees shall file state­
ments of employment and financial interests:
(1) Employees paid at a level of the Federal Executive Salary Schedule estab­
lished by the Federal Executive Salary Act of 1964, as amended.
(2) Employees receiving compensation equivalent to that prescribed in the
General Schedule established by the Classification Act of 1949, as amended, for
grade GS-16 or higher.
(3) Employees subject to the provisions of §336.735-13(a)(1).
(4) The purchasing officer of the Corporation, all bank assessment auditors,
and all field liquidators.
(b) Additions to, deletions from, and other amendments of the list of positions
in subparagraph (4) of paragraph (a) of this section are effective upon actual
notification to the incumbents. The amended subparagraph (4) of paragraph (a)
of this section shall be submitted annually for publication in the Federal Register.
§336.735-32

Employees not required to subm it statements.

Employees subject to separate reporting requirements under section 401 of the
Executive Order and 12 U.S.C. 1812.
§336.735-33 Time and place for submission of employees’ statements.
An employee required to submit statements of employment and financial inter­
est under §336.735-31 shall submit that statement to the Assistant to the Chair­
man of the Board of Directors not later than:
(a) Ninety days after the effective date of the agency regulations issued under
this part if employed on or before that effective date; or
(b) Thirty days after his entrance on duty, but not earlier than ninety days
after the effective date, if appointed after that effective date.
§336.735-34 Supplem entary statements.
Changes in, or additions to, the information contained in an em ployee’s state­
ment of employment and financial interests shall be reported in a supplementary
statement at the end of the quarter in which the changes occur and shall reflect
all changes occurring during the quarter. Quarters end March 31, June 30, Sep­
tember 30, and December 31. If there are no changes or additions in a quarter,
a negative report is not required. However, for the purpose of annual review, a
supplementary statement, negative or otherwise, is required as of June 30 each
year.
§336.735-35 Interests of em ployees’ relatives.
The interest of a spouse, minor child, or other member of an em ployee’s imme­
diate household is considered to be an interest of the employee. For the purpose
of this section, “ member of an em ployee’s immediate household” means those
blood relations of the employee who are residents of the em ployee’s household.
§336.735-36 Inform ation not known by employees.
If any information required to be included on a statement of employment and
financial interests or supplementary statement, including holdings placed in trust,
is not known to the employee but is known to another person, the employee shall
request that other person to subm it information in his behalf.




RULES AND REGULATIONS OF THE CORPORATION

113

§336.735-37 Inform ation prohibited.
This subpart does not require an employee to subm it on a statement of em­
ployment and financial interests or supplementary statement any inform ation re­
lating to the em ployee’s connection with, or interest in, a professional society or
a charitable, religious, social, fraternal, recreational, public service, civic, or
political organization or a sim ilar organization not conducted as a business enter­
prise. For the purpose of this section, educational and other institutions doing
research and development or related work involving grants of money from or
contracts with the Government are deemed “ business enterprises” and are re­
quired to be included in an em ployee’s statement of employment and financial
interests.
§336.735-38

Confidentiality of em ployees’ statements.

The Corporation shall hold statements of employment and financial interest,
and each supplementary statement, in confidence. The Corporation may not dis­
close information from a statement except as the Chairman of the Corporation or
the Civil Service Commission may determine for good cause shown.
§336.735-39 Effect of em ployees’ statements on other requirements.
The statements of employment and financial interests and supplementary state­
ments required of employees are in addition to, and not in substitution for, or in
derogation of, any sim ilar requirem ent imposed by law, order, or regulation. The
submission of a statement or supplementary statement by an employee does not
permit him or any other person to participate in a manner in which his or the
other person’s participation is prohibited by law, order, or regulation.
§336.735-40 Specific provisions of regulations for special Corporation employees.
(a) Except as provided in paragraph (b) of this section, each special Corpora­
tion employee shall subm it a statement of employment and financial interests
which reports:
(1) All other employment; and
(2) All financial interests which relate either directly or indirectly to the duties
and responsibilities of the special Corporation employee.
(b) The Chairman of the Corporation may waive the requirement in paragraph
(a) of this section for the submission of a statement of employment and financial
interests in the case of a special Corporation employee, who is not a consultant
or an expert when the Chairman finds that the duties of the position held by that
special Corporation employee are of a nature and at such a level of responsibility
that the submission of the statement by the incumbent is not necessary to protect
the integrity of the Corporation. For the purpose of this paragraph, “ consultant”
and “ expert” have the meanings given those terms by Chapter 304 of the Federal
Personnel Manual, but do not include a physician, dentist, or allied medical spe­
cialist whose services are procured to provide care and service to patients.
(c) A statement of employment and financial interests required to be submitted
under this section shall be submitted not later than the time of employment of the
special Corporation employee. Each special Corporation employee shall keep his
statement current throughout his employment with the Corporation by the sub­
mission of supplementary statements.
§336.735-41

Reviewing statements and reporting conflicts of interest.

(a) When a statement submitted under this subpart or information from other
sources indicates a conflict between the interests of an employee or special Cor­
poration employee and the performance of his services for the Corporation, the
Counselor designated in the regulations in this part shall investigate and dispose
of the matter in such manner as he may deem appropriate. When the conflict or
appearance of conflict is not resolved by the Counselor, the information concern­
ing the conflict or appearance of conflict shall be reported to the Chairman of
the Board of Directors.
(b) The employee or special Corporation employee concerned shall have a rea­
sonable opportunity, orally a n d /o r in w riting to explain the conflict or appearance
of conflict.




FEDERAL DEPOSIT INSURANCE CORPORATION

114

§336.735-42 D isciplinary and other rem edial actions.
(a) A violation of the regulations in this part by an employee or special Cor­
poration employee may be cause for appropriate disciplinary action which may
be in addition to any penalty prescribed by law.
(b) When, after consideration of the explanation of the employee or special
Corporation employee provided by §336.735-41, the Chairman of the Board de­
cides that remedial action is required, he shall take immediate action to end the
conflicts or appearance of conflicts of interest. Remedial action includes, but is
not limited to:
(1) Changes in assigned duties;
(2) Divestment by the employee or special Corporation employee of his con­
flictin g interest;
(3) D isciplinary action; or
(4) Disqualification for a particular assignment.
Remedial action, whether disciplinary or otherwise, shall be effected in accord­
ance with any applicable law, Executive orders, and regulations.
This Part 336 was approved by the Civil Service Commission on February 11,
1966.
Effective date. This Part 336 shall become effective upon publication in the
Federal Register.
[F.R. Doc. 66-4022; Filed, Apr. 13, 1966; 8:47 a.m.]

TITLE 12— BANKS AND BANKING
CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION
SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY
PART 329— PAYMENT OF DEPOSITS AND INTEREST THEREON BY INSURED
NONMEMBER BANKS

Miscellaneous Amendments
1. Effective July 20, 1966, §329.1 of the rules and regulations of the Federal
Deposit Insurance Corporation (12 CFR 329.1) is amended by inserting a new
paragraph as follows:
§329.1

Definitions.

*

*

*

*

*

(f)
M ultiple m aturity time deposit. The term “ m ultiple m aturity time deposit”
means any time deposit (1) that is payable at the depositor’s option on more than
one date, whether on a specified date or at the expiration of a specified time after
the date of deposit (e.g., a deposit payable at the option of the depositor either 3
months or 6 months after the date of deposit), (2) that is payable after written
notice of withdrawal, or (3) with respect to which the underlying instrum ent or
contract or any informal understanding or agreement provides for autom atic re­
newal at maturity.
2. Effective July 20, 1966, §329.6 of the rules and regulations of the Federal
Deposit insurance Corporation (12 CFR 329.6) is amended to read as follow s:
§329.6 Maximum rates '2 of interest payable on time and savings deposits by in­
sured nonmember banks.
(a)
Time deposits. (1) No insured nonmember bank shall pay interest accruing
at a rate in excess of 5 1 percent per annum, com pounded quarterly,1 regardless
/2
3
of the basis upon which such interest may be computed, on any time deposit,
subject, however, to the provisions of subparagraphs (2) and (3) of this paragraph.
(2)
No insured nonmember bank shall pay interest accruing at a rate in excess
of 5 percent per annum, compounded quarterly,1 regardless of the basis upon
3
which such interest may be computed, on any m ultiple maturity time deposit re­
ceived on or after July 20, 1966, which is payable only 90 days or more after the




RULES AND REGULATIONS OF THE CORPORATION

115

date of deposit or 90 days or more after the last preceding date on which it might
have been paid.
(3)
No insured nonmember bank shall pay interest accruing at a rate in excess
of 4 percent per annum, compounded qu arterly,1 regardless of the basis upon
3
which such interest may be computed, on any m ultiple maturity time deposit re­
ceived on or after July 20, 1966, which is payable less than 90 days after the
date of deposit or less than 90 days after the last preceding date on which it
might have been paid.
(b)
Savings deposits. No insured nonmember bank shall pay interest accruing
at a rate in excess of 4 percent per annum, compounded qu arterly,1 regardless
3
of the basis upon which such interest may be computed, on any savings deposit.
12
The m axim um rates of in te re s t p a y a b le by in s u re d n o n m e m b e r banks on tim e and sa vin g s
d e p o s its as p re s c rib e d h e re in are no t a p p lic a b le to any d e p o s it w h ic h is p a y a b le o n ly at an o ffic e
o f an in su re d n o n m e m b e r ban k lo c a te d o u ts id e of the S tates of the U n ite d S tates and th e D is tric t
of C o lu m b ia .
13 T h is lim ita tio n is n o t to be in te rp re te d as p re v e n tin g the c o m p o u n d in g of in te re s t at o th e r than
q u a rte rly in te rv a ls : P ro v id e d , T h a t th e a g g re g a te a m o u n t of such in te re s t so c o m p o u n d e d does not
e xce e d the a g g re g a te a m o u n t of in te re s t at the rate above p re s c rib e d w hen c o m p o u n d e d q u a rte rly .

(Sec. 9, 64 Stat. 881; 12 U.S.C. 1819 (Interprets or applies sec. 18, 64 Stat. 891;
12 U.S.C. 1828))
[F.R. Doc. 66-7887; Filed, July 20, 1966; 8:45 a.m.]

TITLE 12— BANKS AND BANKING
CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION
SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY
PART 329— PAYMENT OF DEPOSITS AND INTEREST THEREON BY INSURED
NONMEMBER BANKS

Miscellaneous Amendments
1. Effective September 26, 1966, §329.0 of the rules and regulations of the Fed­
eral Deposit Insurance Corporation (12 CFR 329.0) is amended to read as follows:
§329.0 Scope.
The regulation contained in this part relates to the payment of deposits and
interest thereon by insured nonmember banks. This part is not applicable to
banks which are members of the Federal Reserve System. Regulation Q (Part 217
of this title), prescribed by the Board of Governors of the Federal Reserve Sys­
tem for banks which are members of that System, is not applicable to insured
banks which are not members of the Federal Reserve System, except to the ex­
tent that the State law of a particular State provides otherwise. The provisions
of this part do not apply to any deposit in a bank located outside of, or payable
only at a bank’s office which is located outside of, the States of the United States
and the District of Columbia. Except as provided in §329.7, the provisions of this
part do not apply to mutual savings banks or to guaranty savings banks operat­
ing in the State of New Hampshire so long as said guaranty savings banks oper­
ate substantially under and pursuant to the laws of the State of New Hampshire
pertaining to mutual savings banks and do not engage in com m ercial banking.
2. Effective September 26, 1966, §329.6 of the rules and regulations of the Fed­
eral Deposit Insurance Corporation (12 CFR 329.6) is amended to read as follows:
§329.6 Maximum rates 7 of interest payable on time and savings deposits by
insured nonmember banks.
(a) Maximum rate of
percent. No insured nonmember bank shall pay inter­
est at a rate in excess of 5 1 percent per annum on any time deposit of $100,000
/2
or more, subject, however, to the provisions of paragraphs (b)(2) and (c)(1)(i) of
this section.
(b) Maximum rate of 5 percent. No insured nonmember bank shall pay interest




116

FEDERAL DEPOSIT INSURANCE CORPORATION

at a rate in excess of 5 percent per annum (1) on any time deposit of less than
$100,000, subject, however, to the provisions of paragraph (c)(1)(i) of this section,
or (2) on any m ultiple maturity time deposit that is payable only 90 days or more
after the date of deposit or 90 days or more after the last preceding date on
which it might have been paid.
(c)
Maximum rate of 4 percent. (1) No insured nonmember bank shall pay in­
terest at a rate in excess of 4 percent per annum (i) on any m ultiple m aturity time
deposit that is payable less than 90 days after the date of deposit or less than 90
days after the last preceding date on which it might have been paid, or (ii) on
any savings deposit.
(2)
In calculating the rate of interest paid, the effects of compounding of inter­
est may be disregarded. An insured nonmember bank that elects to compound
interest— either at the maximum permissible rate or at a lower rate— shall state
the basis of com pounding (such as semiannually, quarterly, monthly, weekly,
daily, or continuously) in every advertisement, announcement, solicitation, and
agreement relating to the rate of interest paid on a deposit.
12 The m axim um rates of in te re s t pa y a b le by in sure d no n m e m b e r ban ks on tim e and sa vin g s
d e p o s its as p re s c rib e d h e re in are not a p p iic a b ie to any d e p o s it w h ic h is p a y a b le o n ly at an o ffic e
o f an in su re d n o n m e m b e r ban k lo c a te d o u ts id e of the States of the U n ite d S tates and the D is tric t
o f C o lu m b ia .

3.
Effective September 26, 1966, Part 329 of the rules and regulations of the
Federal Deposit Insurance Corporation (12 CFR Part 329) is amended by adding
at the end thereof the following new §329.7 to read as follows:
§329.7 Maximum rates 1 of interest or dividends payable on deposits by insured
3
nonmember m utual savings banks.
(a) Definition. For the purpose of this section, the term “ mutual savings bank”
includes any mutual savings bank and any guaranty savings bank which operates
in the State of New Hampshire substantially under and pursuant to the laws of
that State pertaining to mutual savings banks which does not engage in comm er­
cial banking.
(b) Maximum rates payable. For any time on or after October 1, 1966, no in­
sured nonmember mutual savings bank shall pay interest or dividends at a rate
in excess of 5 percent per annum on any deposit. Section 329.3(b), relating to
m odification of deposit contracts to conform to regulations, shall apply to insured
nonmember mutual savings banks.
(c) Com pounding interest. In calculating the rate of interest or dividends paid,
the effects of compounding of interest or dividends may be disregarded. An in­
sured nonmember mutual savings bank that elects to compound interest or divi­
dends— either at the maximum permissible rate or at a lower rate— shall state
the basis of compounding (such as semiannually, quarterly, monthly, weekly, daily,
or continuously) in every advertisement, announcement, solicitation, and agree­
ment relating to the rate of interest or dividends paid on a deposit.
(d) Grace periods in com puting interest. An insured nonmember mutual savings
bank may pay interest or dividends on a deposit received during the first ten (10)
calendar days of any calendar month at the applicable maximum rate prescribed
in paragraph (b) of this section calculated from the first day of such calendar
month until such deposit is withdrawn or otherwise ceases to constitute a deposit
upon which interest or dividends are payable; and an insured nonmember mutual
savings bank may pay interest or dividends on a deposit withdrawn during the
last 3 business days of any calendar month ending a regular quarterly or semi­
annual interest or dividend period at the applicable maximum rate prescribed in
paragraph (b) of this section calculated to the end of such calendar month.
13 The m axim um rate of in te re s t pay a b le by in s u re d n o n m e m b e r m utu al s a v in g s banks as p re ­
s c rib e d h e re in is n o t a p p lic a b le to any d e p o s it w h ic h is p a y a b le o n ly at an o ffic e of an in s u re d
n o n m e m b e r m utu al s a v in g s ban k lo c a te d o u ts id e of the States of the U n ite d S tates and the D is tric t
of C o lu m b ia .

(Sec. 9, 64 Stat. 881; 12 U.S.C. 1819)




[F.R. Doc. 66-10509; Filed, Sept. 26, 1966; 8:45 a.m.]

RULES AND REGULATIONS OF THE CORPORATION

117

TITLE 12— BANKS AND BANKING
CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION
SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY
PART 329— PAYMENT OF DEPOSITS AND INTEREST THEREON BY INSURED
NONMEMBER BANKS

Maximum Rates of Interest or Dividends Payable on Deposits by Insured
Nonmember Mutual Savings Banks; Banks in Alaska
Effective October 1, 1966, §329.7 of the rules and regulations of the Federal De­
posit Insurance Corporation (12 CFR 329.7) is amended by adding a new para­
graph (e) as follows:
§329.7 Maximum rates of interest or dividends payable on deposits by insured
nonmember m utual savings banks.
*
*
*
*
*
(e)
Banks in Alaska. Notwithstanding paragraph (b) of this section, any insured
nonmember mutual savings bank located in the State of Alaska may pay fo r any
time on or after October 1, 1966, a rate of interest or dividends not in excess of
51 percent per annum on any deposit and may continue to pay a higher rate of
/4
interest or dividends in accordance with any time certificate of deposit, savings
certificate, or sim ilar certificate issued by the bank prior to September 22, 1966,
requiring maintenance of the deposit for a stated period or making the rate of
interest or dividends dependent thereon, and on any renewals or extensions of
such certificates on the same terms and conditions. For the purposes of para­
graphs (c) and (d) of this section, the applicable maximum rate for any such
bank located in the State of Alaska is that prescribed by this paragraph.
(Sec. 9, 64 Stat. 881; 12 U.S.C. 1819)
[F.R. Doc. 66-10707; Filed, Sept. 30, 1966; 8:45 a.m.]

TITLE 12— BANKS AND BANKING
CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION
SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY
PART 327— ASSESSMENTS
PART 329— PAYMENT OF DEPOSITS AND INTEREST THEREON BY INSURED
NONMEMBER BANKS

Miscellaneous Amendments
On September 29, 1966, a notice of proposed rule making was published in the
Federal Register (31 F.R. 12727) stating that the Board of Directors of the Federal
Deposit Insurance Corporation was considering the amendment of Parts 327 and
329 of its rules and regulations. Interested persons were afforded an opportunity
to participate in the rule making through the submission of comments. After con­
sideration of all such relevant matter as was subm itted by interested persons, the
amendment as so proposed is hereby adopted, with certain changes, as set forth
below:
1.
Subparagraphs (2) and (4) of paragraph (b) of §327.2 are amended to read
as follows:
§327.2

Classification of deposits.

*

(b>

*

*

*

*

(2) Tim e deposits, open account, being deposits, other than tim e certificates of



118

FEDERAL DEPOSIT INSURANCE CORPORATION

deposit, with respect to which there is in force a written contract with the de­
positor that neither the whole nor any part of such deposit may be withdrawn
prior to the date of maturity, which shall not be less than 30 days after the date
of the deposit, or prior to the expiration of the period of notice which must be
given by the depositor in w riting not less than 30 days in advance of withdrawals,
including deposits such as Christmas club accounts and vacation club accounts,
which are made under written contracts providing that no withdrawal shall be
made until a certain number of periodic deposits have been made during a period
of not less than 3 months, even though some of the deposits are made w ithin 30
days from the end of such period; and
(4) Savings deposits being deposits:
(i) W hich consist of funds deposited to the credit of one or more individuals,
or of a corporation, association, or other organization operated prim arily for re li­
gious, philanthropic, charitable, educational, fraternal, or other sim ilar purposes
and not operated for profit, or in which the entire beneficial interest is held by
one or more individuals or by such a corporation, association, or other organiza­
tion; and
(ii) With respect to which the depositor is not required by the deposit contract
but may at any time be required by the bank to give notice in w riting of an in­
tended withdrawal not less than 30 days before such withdrawal is made and
which is not payable on a specified date or at the expiration of a specified time
after the date of deposit.
2. Paragraphs (d) and (e) of §329.1 are amended to read as follows:
§329.1

Definitions.

(d) Time deposits, open account. The term “ time deposit, open account” means
a deposit, other than a “ time certificate of deposit,” with respect to which there
is in force a written contract with the depositor that neither the whole nor any
part of such deposit may be withdrawn, by check or otherwise, prior to the date
of maturity, which shall be not less than 30 days after the date of the deposit,2
or prior to the expiration of the period of notice which must be given by the de­
positor in w riting not less than 30 days in advance of w ithdraw als.3
(e) Savings deposits. The term “ savings deposit” means a deposit:
(i) Which consists of funds deposited to the credit of one or more individuals,
or of a corporation, association, or other organization operated prim arily for reli­
gious, philanthropic, charitable, educational, fraternal, or other sim ilar purposes
and not operated for profit,4 or in which the entire beneficial interest is held by
one or more individuals or by such a corporation, association, or other organiza­
tion; and
(ii) With respect to which the depositor is not required by the deposit contract
but may at any time be required by the bank to give notice in w riting of an in­
tended withdrawal not less than 30 days before such withdrawal is m ade5 and
which is not payable on a specified date or at the expiration of a specified time
after the date of deposit.
2
D e p o sits, su ch as C h ris tm a s c lu b a c c o u n ts and v a c a tio n c lu b a c c o u n ts , w h ic h are m ade un d e r
w ritte n c o n tra c ts p ro v id in g th a t no w ith d ra w a l s h a ll be m ade u n til a c e rta in n u m b e r o f p e rio d ic
d e p o s its have been m ade d u rin g a p e rio d of not less than 3 m onths, c o n s titu te “ tim e d e p o s its , open
a c c o u n t,” even th o u g h som e of the d e p o s its are m ade w ith in 30 days fro m the end of such p e rio d .
3
A d e p o s it w ith re s p e c t to w h ic h the ban k m ere ly reserves the rig h t to re q u ire n o tic e of not le ss
than 30 days be fo re any w ith d ra w a l is m ade is n o t a “ tim e d e p o s it, ope n a c c o u n t,” w ith in the
m e aning of th e above d e fin itio n .
1 D e p o sits in jo in t a c c o u n ts of tw o o r m ore in d iv id u a ls may be c la s s ifie d as s a v in g s d e p o s its if
th e y m eet the o th e r re q u ire m e n ts of the abo ve d e fin itio n , b u t d e p o s its of a p a rtn e rs h ip o p e ra te d fo r
p ro fit m ay no t be so c la s s ifie d . D e p o s its to the c r e d it of an in d iv id u a l of fu n d s in w h ic h any b e n e ­
f ic ia l in te re s t is h e ld by a c o rp o ra tio n , p a rtn e rs h ip , a s s o c ia tio n , o r o th e r o rg a n iz a tio n o p e ra te d fo r




RULES AND REGULATIONS OF THE CORPORATION
p ro fit o r n o t o p e ra te d p rim a rily fo r re lig io u s , p h ila n th ro p ic , c h a rita b le , e d u c a tio n a l,
o th e r s im ila r p u rp o se s may n o t be c la s s ifie d as sa v in g s d e p o s its .

119
fra te rn a l,

or

5 The e x e rc is e by th e bank of its rig h t to re q u ire such n o tic e s h a ll no t cause the d e p o s it to cease
to be a s a vin g s d e p o s it.

3. Section 329.5 is amended to read as follows:
§329.5 W ithdrawal of savings deposits.
(a) Requirements regarding notice of withdrawal. W hether or not interest is
paid, no insured nonmember bank shall require or waive notice of withdrawal as
to any amount or percentage of the savings deposits of any depositor unless it
shall sim ilarly require or waive such notice as to the same amount or percentage
of the savings deposits of every other depositor which are subject to the same
contractual provisions with respect to notice of withdrawal. If an insured non­
member bank, without requiring notice of withdrawal, pays interest that has
accrued on a savings deposit during the preceding interest period, it shall, upon
request and without requiring such notice, pay interest that has accrued during
that period on the savings deposits of every other depositor. No insured non­
member bank shall change its practice with respect to the requiring or waiving
of notice of withdrawal of savings deposits for the purpose of discrim inating in
favor of or against any depositor or depositors, and no such change of practice
shall be made except pursuant to duly recorded action of the bank’s board of
directors or a properly authorized committee thereof.
(b) Loans on security of savings deposits. If it is not the practice of an insured
nonmember bank to require notice of withdrawal of savings deposits, no restric­
tions are imposed by this part upon loans by such bank to its depositors upon
the security of such deposits. If it is the practice of an insured nonmember bank
to require notice of withdrawal of a savings deposit, such bank may make loans
to a depositor upon the security of such deposit, but the rate of interest on such
loans shall be not less than 2 percent per annum in excess of the rate of interest
paid on such deposit.
(c) Manner of payment of savings deposits. (1) Subject to the provisions of
subparagraph (2) of this paragraph, an insured nonmember bank may permit
w ithdrawals to be made from a savings deposit only through pa ym en t1 to the
2
depositor himself (but not to any other person whether or not acting for the
depositor), except:
(1) Where the deposit is represented by a passbook, to any person presenting
the pa ssbook;1
2
(ii) To an executor, adm inistrator, trustee, or other fiduciary holding the sav­
ings deposit as part of a fiduciary estate, or to a person, other than the bank,
holding a general power of attorney granted by the depositor;
(iii) To any person, including the bank, that has extended credit to the deposi­
tor on the security of the savings deposit, where such payment is made in order
to enable the creditor to realize upon such security;
(iv) Pursuant to the order of a court of competent ju risdiction ;
(v) Upon the death of the depositor, to any person authorized by law to receive
the deposit; or
(vi) Interest paid to a third person pursuant to written instruction or assignment
by the depositor, accepted by the bank, and placed on file therein.
(2) Notw ithstanding the provisions of subparagraph (1) of this paragraph, no
withdrawal shall be permitted by an insured nonmember bank to be made from
a savings deposit, through payment to the bank itself or through transfer of credit
to a demand or other deposit account of the same depositor (other than of inter­
est on the savings deposit) if such payment or transfer is made pursuant to any
advertised plan or any agreement, written or oral:
(i) Which authorizes such payments or transfers of credit to be made as a
>2 P a ym en t from a sa v in g s d e p o s it o r p re s e n ta tio n of a p a s s b o o k m ay be m ade o ver the c o u n te r,
th ro u g h th e m a ils, o r o th e rw is e .




120

FEDERAL DEPOSIT INSURANCE CORPORATION

normal practice in order to cover checks or drafts drawn by the depositor upon
the bank; or
(ii)
Which provides that such payments or transfers of credit shall be made at
daily, monthly, or other such periodic intervals, except where made to enable the
bank, on the depositor’s behalf, and pursuant to his written instruction, to effect
the payment of installments of principal, interest, or other charges (including
taxes or insurance premiums) due on a real estate loan or mortgage.
(3)
Where a savings deposit is evidenced by a passbook, every withdrawal
made upon presentation of the passbook shall be entered in the passbook at the
time of withdrawal, and every other withdrawal from such a deposit shall be
entered in the passbook as soon as practicable after the withdrawal is made.
§§329.6, 329.7

[A m ended]

4.
Footnote 12 in §329.6 and footnote 13 in §329.7 are redesignated as foot­
notes 13 and 14, respectively.
Effective date. This amendment is effective January 1, 1967.
[F.R. Doc. 66-13387; Filed, Dec. 14, 1966; 8:45 a.m.]

STATEMENT OF POLICY WITH RESPECT TO ADVERTISING
BY INSURED STATE NONMEMBER BANKS
Notice is hereby given that at a meeting of the Board of Directors of the
Federal Deposit Insurance Corporation on December 14, 1966, the follow ing state­
ment of policy with respect to advertising by insured State nonmember banks
was approved:
“ In recent years, com petition among financial institutions for funds has become
intense. An outgrowth of such com petition has been the development and use
by a few institutions of advertising practices that could be detrim ental to the
pu b lic’s attitude toward the nation’s financial system. In some respects, certain
of the advertising practices are considered misleading.
“ Under the circumstances, the Com ptroller of the Currency, the Federal De­
posit Insurance Corporation, the Federal Home Loan Bank Board, and the Board
of Governors of the Federal Reserve System have concluded that it would be
helpful, both to the financial institutions that they supervise and to the public,
to outline certain principles that such institutions should follow in their adver­
tisements directed toward attracting funds.
“ The supervisory agencies regard the following as minimum principles that
financial institutions should follow in advertising for funds:
“ (1) Interest or dividend rates should be stated in terms of annual rates of
simple interest, and the advertisement should state whether such earnings are
compounded and, if so, the basis of compounding. Neither the total percentage
return if held to final m aturity nor the average annual rate achieved by com ­
pounding should be stated unless the annual rate of simple interest is presented
with equal prominence.
“ (2) No reference should be made to ‘pro fit’ to the investor for use of his
funds over a period of time.
“ (3) If an advertised rate is payable only on investments or deposits that
meet fixed time or amount requirements, such requirements should be stated.
“ (4) No statement should be made implying that more than $15,000 of Fed­
eral insurance is provided for each depositor in a bank or each member in a
savings and loan association.
“ The Securities and Exchange Commission has expressed the opinion that
deposit and share accounts are subject to the anti-fraud provisions of the Secu­
rities Act of 1933 and the Securities Exchange Act of 1934 and that advertise­
ments by financial institutions that are contrary to such principles may violate
those anti-fraud provisions.”




[F.R. Doc. 66-13882; Filed, Dec. 27, 1966; 8:51 a.m.]

STATE BANKING LEGISLATION— 1966

121

STATE BANKING LEGISLATION— 1966
In 1966, the legislatures of 24 States held regular sessions and 12 held
special sessions. Some of the more important State banking legislation en­
acted during 1966 is listed below on a State-by-State basis.
ALABAM A
Authorization of branches in certain counties ____

HB
HB
HB
HB
HB

Bank organization and branching fees ______

1-X
21-X
108-X
240-X
51-X

ALASKA
Investments of mutual savings banks __________________
Fees in sales of bank securities _______________________
Ownership of shares in banks ___________________________

HB
HB
HB

411
488
455

HB
HB
SB
HB
HB

82
83
219
283
282

HJR

1017

SB

223

HB
HB
SB
SB
SB
HB
SB
HR

322
337
102
124
89
301
88
379

SB
SB
SB
HB
HB
HB
SB

63
196
131
456
131
318
52

SB
HB
SB
SB
SB
SB
SB

213
161
74
94
95
114
225

HB

1217-X

A R IZ O N A
Bank crimes ___________________________________________
Providing for business development c o rp o ra tio n s _________
Loan limits, charges, and payments _____________________
Bank holidays and hours _______________________________
C O LO RAD O
State regulatory authority study ____________________

___
__

DELAW ARE
Uniform Commercial Code enacted ___________
G E O R G IA
Uniform Commercial Code amended ___________ _________
Taxation of shares of b a n k s ______________________________
Capital stock requirements ______________________________
Uninvested trust funds ___________________________________
Banking prohibited without charter or certificate ______
Banking law amendments _______________________________
Regulated Certificated Bank Act ________________________
Study committee on banking la w s _______________________
KENTUCKY
Banking law amendments _______________________________
Bank investments ________________________________________
Rates of interest on loans _______________________________
Uniform Commercial Code amended ___________________
Sale of Checks Act _____________________________________
Taxation of banks ________________________________________
Gifts to Minors Act _____________________________________
L O U IS IA N A
Taxation of bank stock __________________________________
Bank holidays ___________________________________________
Bank names _____________________________________________
Bank lo a n s _______________________________________________
Taxation of banks ________________________________________
Sale of Checks Act _____________________________________
M A IN E
Bank loan lim itations ______________________




122

FEDERAL DEPOSIT INSURANCE CORPORATION
Investments by banks and trust companies ...

SB

615-X

M ARYLAND
Taxation of savings banks _____________________
___
Dormant a c c o u n ts __
Bank holidays __________________________________
Higher education loan program amendments
Stockholders’ meetings .....
___
Personal property leasing _________________________
Disposition of unclaimed property ________________

SB
HB
SB
SB
HB
HB
SB

50
39
436
181
186
184
238

HB
HB
SB
HB
SB
HB

541
4
767
924
758
923
HB
926
SB
HB
HB
925
HB
HB
HB
HB

M ASSACHUSETTS
Security for trust funds
______________
C ertificates of deposit ___ _________________________
Loans by trust companies to officers
________
Deposits in savings banks ______ ___________________
Trust company organization and branching ______
Loan lim itations of savings banks ....
________
Authorizing mobile branch banking
Investments by savings banks

HB

State examination of banks
________
Branching by savings banks
_____ _______ HB
Insured student loans __________________________________
Supplemental interest on certain deposit accounts ____
Disclosure of interest charges ___________________________
Bank holding company regulation _______________________

2248
779
3505
3507
3591
3808
3840
3285

M IC H IG A N
Change in location _______________________________________SB
Lim itations on loans, borrowing, and pledges ___________
Real estate loan requirements __________________________
Investment authority _______
__________________________
Indemnity for officers involved in litigation ______________
Gifts to Minors Act _______________________________________
Rates of interest on loans ______________________________

826
HB 3440
HB 3441
SB 984
HB 3442
HB 3971
HB 2579

M I S S IS S I P P I
Salaries of state bank examiners _______________________
Removal of stockholder inform ation _____________________
Voting trusts prohibited __________________________________
Leasing safe deposit boxes _____________________________
Loans to directors and e m p lo ye e s______________________
Joint deposits and deceased depositors’ accounts _____
Preferred stock __________________________________________
Restoration of capital stock _____________________________
Bank examinations _______________________________________
Loan lim itations and data processing services __________
Loans by branch offices _________________________________
Sale of stock by d ir e c to r _________________________________
Uniform Commercial Code enacted ______________________ HB
NEW

1923
1922
1868
1867
1866
1876
1904
1973
1959
1906
1886
1885
2

AB
SB
AB
AB
AB
AB

214
291
239
240
285
619

JE R S E Y

Joint deposits in trust ___________________________________
Person convicted serving as director or e m p lo y e e ______
Savings bank investment lim itations _____________________

Savings bank deposit lim itation ___




SB
SB
SB
SB
SB
SB
SB
SB
SB
SB
SB
SB

STATE BANKING LEGISLATION— 1966
Regulation of bank loans and investments ______________AB
Loans to officers and directors _________________________
Mortgage loans by savings banks _______________________
Capital notes and debentures _________________________
NEW

123
678
AB 274
AB 275
AB 247

M E X IC O

Uniform Commercial Code amended __________
NEW

HB

8

SB
SB
SB
SB
SB
AB
AB
AB
AB
AB
AB
AB
SB
SB
AB
AR
SR
AB

2090
2088
2091
3448
2306
2256
4058
2924
3810
5358
5964
2964
4959
4933
5935
182
154
5885

HB

7-X

HB
HB
HB
SB
HB

1535
1556
1403
532
1606

YORK

Savings bank earnings ___________________________________
Savings bank loan reports ______________________________
Savings bank mortgage loans ____________________________
Bank loan lim itations ____________________________________
Foreign bank loan lim itations ____________________________
Powers of savings banks _________________________________
Duties of directors and tru s te e s _________________________
Savings bank investments ______________________________
Investment in FNMA securities _________________________
Savings banks acting as trustees _______________________
Taxation of banks ______________________________________
Banking law amendments _______________________________
Joint banking law s tu d y __________________________________
Savings bank real estate appraisals ______________
P E N N S Y L V A N IA
Goods and Services Instalment Sales A c t ________
RHODE

IS L A N D

Investment lim itations _______________________________
Lost passbooks and certificates _________________________
Sale of Checks A ct _____________________________________
Savings bank loans _____________________________________
SOUTH

C A R O L IN A

Real estate loan lim ita tio n s ______________________________
Uniform Commercial Code enacted ______________________
Instalment loans _________________________________________
SOUTH

HB 2105
HB 1399
HB 2085

DAKOTA

State Banking Commission ____________________________

HB

Loan lim itations _________________________________________
Audit reports ____________________________________________

HB
HB

559
558
561
557

SB

1-X

HB
HB
HJR
SB
HB

250
498
101
381
229

HB

205

VERMONT
Uniform Commercial Code enacted __________
V IR G IN IA
Gifts to Minors Act amended ________________________ ....
Payable on death deposits ______________________________
Money and Interest Study Commission _________________
Uniform Commercial Code amended _____________________
Virginia Banking A c t _____________________________________
W EST

V IR G IN IA

Digitized forUniform Disposition of Unclaimed Property Act
FRASER





STATISTICS OF BAN KS
AND DEPOSIT INSURANCE




PART THREE

126

Table 101.

Table 103.

CORPORATION




Branches include all offices of a bank other than its head office,
at which deposits are received, checks paid, or money lent. Bank­
ing facilities separate from a banking house, banking facilities at
government establishments, offices, agencies, paying or receiving
stations, drive-in facilities and other facilities operated for limited
purposes are defined as branches under the Federal Deposit Insur­
ance Act, Section 3(o), regardless of the fact that in certain States,
including several which prohibit the operation of branches, such
lim ited facilities are not considered branches within the meaning
of State law.

INSURANCE

Tabulations fo r all banks are prepared in accordance with an
agreement among the Federal bank supervisory agencies. Provision
of deposit facilities fo r the general public is the chief criterion for
distinguishing between banks and other types of financial institu­
tions. However, trust com panies engaged in general fiduciary busi­
ness though not in deposit banking are included; and credit unions
and savings and loan associations are excluded except in the case
of a few which accept deposits under the terms of special charters.

DEPOSIT

Table 102.

Changes in number and classification of banks and branches in the United
States (States and other areas) during 1966
Changes in number of commercial banks and branches during 1966, by
State
Number of banking offices in the United States (States and other areas),
December 31, 1966
Grouped according to insurance status and class of bank, and by State
or area and type of office

FEDERAL

NUMBER OF BANKS AND BRANCHES

O
F
BANKS
AND
BRANCHES
127




Mutual savings banks include all banks operating under State
banking codes applying to mutual savings banks.
institutions excluded. Institutions in the follow ing categories are
excluded, though such institutions may perform many of the same
functions as com m ercial and savings banks:
Banks w hich have suspended operations or have ceased to
accept new deposits and are proceeding to liquidate their assets
and pay off existing deposits;
Building and loan associations, savings and loan associations,
credit unions, personal loan companies, and sim ilar institutions,
chartered under laws applying to such institutions or under genera!
incorporation laws, regardless of w hether such institutions are
authorized 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 sim ilar 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.

NUMBER

Commercial banks include the follow ing categories of banking
institutions:
National banks;
Incorporated State banks, trust companies, and bank and trust
com panies, regularly engaged in the business of receiving deposits,
w hether demand or time, except mutual savings banks;
Stock savings banks, including guaranty savings banks in New
Ham pshire;
Industrial and M orris Plan banks which operate under general
banking codes, or are specifically authorized by law to accept
deposits and in practice do so, or the obligations of which are
regarded as deposits for deposit insurance;
Special types of banks of deposit: cash depositories in South
Carolina; regulated certificated banks, and a savings and loan com­
pany operating under S uperior Court charter, in Georgia; govern­
ment operated banks in Am erican Samoa, North Dakota, and Puerto
Rico; a cooperative bank, usually classified as a credit union, oper­
ating under a special charter in New Hampshire; a savings insti­
tution, known as a “ trust com pany,” operating under special charter
in Texas; an em ployes’ mutual banking association in Pennsylvania;
the Savings Banks Trust Company in New York; and branches of
foreign banks engaged in a general deposit business in New York,
Oregon, W ashington, Puerto Rico, and Virgin Islands.
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 companies include institutions operating under
trust com pany charters w hich are not regularly engaged in deposit
banking but are engaged in fiduciary business other than that in ci­
dental to real estate title or investment activities.

CHANGES IN NUMBER AND CLASSIFICATION OF BANKS AND BRANCHES IN THE UNITED STATES
(STATES AND OTHER AREAS) DURING 1966

T a b le 1 0 1 .

Commercial banks and nondeposit trust companies
Insured

128

All banks

Mutual savings banks

Noninsured

Type of change
Total

In­
sured

Non­
insured

Members F. R.
System

Total

Na­
tional

State

Not
mem­
bers
F. R.
Sys­
tem

In­
sured

Non­
Banks deposit Total
of
trust
de­
com­
posit panies1

Non­
insured

FEDERAL

Total

ALL BANKING OFFICES

N e t change during y e a r . . . .

..........

32,136
30,958

31,491
30,306

645
652

30,872
29,736

30,544
29,393

14,436
13,801

4,867
4,738

11,241
10,854

251
278

77
65

1,264
1,222

947
913

317
309

+1,185

-7

+1,136

+1,151

+635

+129

+387

-27

+12

+42

+34

+8

1,402
125
1,277

1,345
101
1,244

57
24
33

1,356
123
1,233

1,310
99
1,211

649
25
624

249
4
245

412
70
342

3
1
23
8

15
1
14

46
2
44

35
2
33

1
1

O ffices c lo s e d .................................................................................
Banks............................................................................
Branches....................................................................

224
158
66

193
130
63

3
1
28
3

220
156
64

190
129
61

87
55
32

3
1
20
11

72
54
18

27
24
3

3
3

4
2
2

3
1
2

1
1

+33
+26
+7

-33
-2 6
-7

+31
+24
+7

+73
+ 14
+ 59

-89
-3 9
-5 0

+47
+49
_2

-31
-2 4
-7

Changes in c la s s ific a tio n .........................................................
Among banks...............................................................
Among branches..........................................

11

+2
+2

-2
-2

332
329

174
177

+3

-3

BANKS
N u m b e r of banks, D ec em b er 3 1 , 1 9 6 6 ....................................
N u m b e r o f banks, D ec em b er 3 1 , 1 9 6 5 ....................................

14,291
14,324

13,873
13,876

418
448

13,785
13,818

13,541
13,547

4,799
4,815

1,350
1,405

7,392
7,327

196
221

48
50

N e t change during y e a r.................................................................

-33

-3

-30

-33

-6

-16

-55

+65

-25

-2

506
506

B anks beg inning o p e ra tio n ..
......................................
New banks
...........................................................
Banks added to count3...............................................

125
124
1

101
101

24
23
1

123
122
1

99
99

25
25

4
4

70
70

23
22
1

1
1

B anks ceasing o p e ra tio n ..........................................................
Absorptions, consolidations, and mergers (without
FDIC aid)...................................................................
Closed because of financial d iffic u ltie s ..................
Other liquidations........................................................
Discontinued deposit operations..............................
Banks deleted from count3...........
....

158

130

28

156

129

55

20

54

24

3

2

1

1

133
8
6
7
4

122
7
1

11
1
5
7
4

131
8
6
7
4

121
7
1

52
2
1

20

49
5

9
1
4
7
3

1

2

1

1

+2

-2

N o n in su red banks becom ing in s u re d ...............................




+26

-26

+24

+24

-24

2
2

2
2

1
1

CORPORATION

+1,178

INSURANCE

...

O ffices o p e n e d ...............................................................................
Banks..........................................................................
Branches......................................................................

DEPOSIT

N u m b e r of offices, D e c e m b e r 3 1 , 1 9 6 6 2
N u m b e r of offices, D e c e m b e r 3 1 , 1 9 6 5 2..........

O th e r changes in c la s s ific a tio n ............................................
National succeeding State bank...............................
State succeeding National bank...............................
Admission of insured bank to F. R. System...........
Withdrawal from F. R. System with continued
insurance..................................................................
Changes not involving n u m b e r in any class:
Change in title ...............................................
Change in location........................................
Change in title and location.........................
Change in corporate powers:4
Granted tru st powers................................

+14
+23
-9

+25

143
18

140
16

1
0

1
0

138
16

1
0

77

6

4

+7
-4

-3 2

1
0

-10

+4

147
18

-1 3

+32

+2

1
2
2

49

8
6

51

BRANCHES
17,845
16,634

17,618
16,430

227
204

17,087
15,918

17,003
15,846

9,637

3,517
3,333

3,8
3,527

N e t change du rin g y e a r.....................................

+1,211

+1,188

+23

+1,169

+1,157

+651

+184

1,277
3
117
16
1,115
26

1,244
3
116
16
1,104
5

33

1,233
3
116
16
1,073
25

1,211

624

245

70

""20
2
222
1

26

1

O
F

304
3

42

64

6
1

BANKS

46

44

B ranches op e n ed fo r b u s in e s s ............................
Facilities designated by Treasury................
Absorbed banks converted to branches....
Branches replacing head offices relocated.
New branches5..............................................
Branches and facilities added to count3. ...

6
46

1
1

Changes not involving n u m b e r in any class:
Changes in operating powers of branches............
Branches transferred through absorption, con­
solidation or m erger..............................................
Changes in title, location or name of location.......

+7

6

1
1

+7

2
6

545

1

758
716

615
584

143
132

+322

+14

+42

+31

+11

342

14

44

1

8

6
2
1

1
2
6

5

-2

49

393

-50
-29

-9
+37

+21

49
395

+ 16

-3 7

31
218

72

+59
+38

+7

49
382

49
382

1

32

-3 7
+7

1
1

+7

6

1
2

92

129

1 Includes one trust company member of the Federal Reserve System.
2 Includes facilities established both at request of the Commanding Officer of Federal Government installations and designated by the U. S. Treasury, and a few seasonal branches that were not in operation
as of December 31.
3 Changes occurred prior to 1966, but were not included in the count as of December 31,1965.
4 Information available only for insured banks not members of the Federal Reserve System.
5 Excludes opening and closing of seasonal offices (except those newly established or permanently discontinued in 1966).




BRANCHES

O th er changes in c la s s ific a tio n ..........................................
Branches changing class as result of conversion..
Branches of insured banks withdrawing from F. R.
System....................................................................
Branches of noninsured banks admitted to in­
surance...................................................................
Branches transferred through absorption, con­
solidation or m erger..............................................

6

1
2

3
116
16
1,071
5

29
15

AND

B ranches d is c o n tin u e d ...............................................
Facilities designated by Treasury...................
Branches5........................................................
Branches and facilities deleted from count3.

......

55
57

NUMBER

N u m b e r of b ranches, D ec em b er 3 1 , 1 9 6 6 2.
N u m b e r of branches, D ec em b er 3 1 , 1 9 6 5 2

130

Table 102. CHANGES IN NUMBER OF COMMERCIAL BANKS AND BRANCHES DURING 1966, BY STATE

S ta te

B a n ks

Dec. 3 1 , 19 6 5

Dec. 3 1 , 1 9 6 6

C e a sin g o p e ra tio n in 1 9 6 6

B e g in n in g o p e ra tio n in 1 9 6 6

N e t chan ge
d u rin g 1 96 6

In o p e ra tio n

Banks

B ra n c h e s

B ra n c h e s

B ra n c h e s
B ra n c h e s

Banks

O th e r

B ra n ch e s

Total United States.

13,785

17,087

13,818

50 States and D.C.. .

16,907

13,803

15,753

-37

165

+ 4

A la b a m a .......................
A la s k a ............................
A r iz o n a ..........................
A r k a n s a s ......................
C a lifo r n ia ......................

267
12
18
246
193

186
55
282
119
2,537

263
12
18
246
199

163
53
258
108
2,424

252
67
20
14
447

9
336
71
94
19

250
68
20
15
443

8
313
65
88
18

+ 2
- 1

426
11
25
1,061
419

211
120
140
5
507

429
12
25
1,051
422

196
116
127
5
471

Io w a ..........
K a n s a s ...
K e n tu c k y .
L o u is ia n a .
M a in e . . ..

674
601
348
220
44

250
53
243
286
183

673
599
346
214
44

235
49
232
248
175

M a ry la n d ............
M a s s a c h u s e tts .
M ic h ig a n .............
M in n e s o ta ..........
M is s is s ip p i.........

122
162
347
723
190

415
614
988
9
259

122
161
354
722
196

394
568
893
10
221

1,098

135

137

64

117

1,080

135

137

6
1

5

18

+ 4

C o lo ra d o .......................
C o n n e c tic u t.................
D e la w a re ......................
D is tr ic t o f C o lu m b ia .
F lo rid a ...........................

122

+1,154
+

15
23

2
1
2

+

24

+

113

23
13
113

State

-

1

+ 4
-

3

1

+10
-

3

+
+
+
+

1
2
2
6

+ 1
-

7

+ 1
- 6

2

1
1

3

CORPORATION

15




O th e r

INSURANCE

180

G e o rg ia .
H a w a ii...
I d a h o . ...
I llin o is . ..
In d ia n a .

A b s o rp tio n s

DEPOSIT

19

Other areas..............

O th e r

+1,169

15,918

13,766

New

FEDERAL

B anks

63
3
28
63
27

+

8

+
+
+

1
7
6

New Jersey..............
New Mexico..............
New York..................
North Carolina.........
North Dakota...........

232
64
336
137
167

712
101
2,060
790
61

233
64
344
146
169

673
95
1,932
737
49

+
+
-f
+
+

39
6
128
53
12

Ohio...........................
Oklahoma.................
Oregon......................
Pennsylvania............
Rhode Island...........

537
420
52
546

1
1

1,009
42
273
1,338
128

542
421
51
571
11

948
38
265
1,238
125

+
+
+
+
+

61
4
8
100
3

South Carolina.........
South Dakota...........
Tennessee................
Texas........................
U tah..........................

128
167
298
1,147
55

302
83
378
53
111

129
170
298
1,142
56

270
76
329
52
109

+
+
+
+
+

32
7
49
1
2

2
10

Verm ont....................
Virginia.....................
Washington..............
West Virginia............
Wisconsin.................
Wyoming...................

48
251
95
190
591
69

59
612
424

57
558
409

+
+
+

2
54
15

5

173
1

48
262
100
187
581
69

170
1

+

3

Other area
Pacific Islands.........
Panama Canal Zone
Puerto Rico..............
Virgin Islands...........

1

13
2
154
11

1

1

11
3

12
2
144
7

+

1
2
6

+
+

10
4

1
3

1
1

8

1
2

2
9
6
5

4

9
9
1

8
9
1

6

7
1

1
1

25

25

6

2
3
3
1

2
3
2
4
1

3
39
11

16
5

3
11

i6
5

2

1

1

2
3

12
5

3
1
2
1

1

35
6
123
48
11
56
5
8
81
3
30
4
46
3
2

1
3

4
4

2

BANKS

1

2
1
1
1
1

1
1

2
1

131




7
2
3

BRANCHES

655
131
436
9
74

AND

71
3
29
70
33

O
F

661
132
439
9
75

NUMBER

Missouri....................
Montana...................
Nebraska..................
Nevada.....................
New Hampshire.......

T a b l e 1 0 3 . NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1966

132

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE
C o m m e rc ia l b a n k s and
n o n d e p o s it t r u s t c o m p a n ie s

All b a n k s

In su re d

M u tu a l s a v in g s b a n ks

N o n in s u re d

S ta te a n d ty p e o f b a n k o r o ffic e
Non­
in s u re d

M em be rs F. R.
Sysltem

Total
T o ta l

N a­
tio n a l

B a n k s ............................................

32,136
14,291

31,491
13,873

10,320
3,553

645
418

17,845

17,618

50 States and D. C.—all offices

31,934

31,318

616

10,637
3,654

30,872
13,785

30,544
13,541

10,172
3,369

14,436

4,867

4,799

1,350

3,336
1,463

896
454

11,241
7,392

5,940
1,452

251

77

196

48

178
18

42
6

In ­
su re d

T o ta l

1,264

947

317

506

332

174

245
261

148
184

17,087

17,003

9,637

3,517

3,849

55

29

758

615

143

30,673

30,374

14,404

4,867

11,103

223

76

1,261

944

317

187

47

41
6

244
260

147
183

330

174

143

10,627
3,643

14,270

13,862

10,317
3,545

310
98

10,383
3,383

10,170
3,362

3,336
1,462

4,798

1,350

896
454

5,938
1,446

B r a n c h e s .....................................

17,664

17,456

208

16,907

16,842

9,606

3,517

3,719

36

29

757

614

Other areas—all offices..........

202

173

29

199

170

32

138

28

1

3

3

21

11

10

Banks

......................................

B r a n c h e s .....................................

10
11

181

3
8

162

13,766

19

13,532

9

1

7,384

8

172
15

9

1

2

2

97
77

Com ­
m e rc ia l M u tu a l
b a n ks savings
b a n ks
of
d e p o s it

98.2

99.2

97.4

98.6

97.4
9 7.4

74.9
65.6

98.3
99.5

60.4
70.5

98.9

99.7

81.1

98.3

99.3

97.5

97.5
9 7.5

98.7

98.3
9 9.6

74.9
65.5

60.2
70.4

99.0

99.8

81.1

86.1

85.9

100.0

9
10

2
7

1

2
6

6
3

55.0

50.0

100.0

19

180

161

31

130

453

453

229

34

267

1
1

33.3
72.7

25.0
70.0

100.0
100.0

1

19

1
1

1

89.5

89.4

100.0

100.0

7
3

1

504

All
banks
of
de­
p o s it

100.0

State
Alabama—all offices...............
B a n ks

....................

B ra n c h e s

....................

Unit banks
Banks operating branches

Alaska—all offices
B a n ks

. . .
....................

Unit banks
. .
Banks operating branches

B ra n c h e s

...

Unit banks
Banks operating branches

B ra n c h e s

453

. .




190

100.0

100.0

210
57

210
57

210
57

87

54
33

24

18
6

138
18

100.0
100.0

100.0
100.0

186

186

186

186

142

10

34

100.0

100.0

69

67

2

67

65

52

13

14

12

2

12

10

5

5

8

5

3

267

6
8

267

4
8

55

278

18

17

267

2

8
10

282

4
8

55

55

300

....................

Arizona-—all offices
B a n ks

453

210
57

22
1

55

47

300

278

192

18

17

8
9

1

8
10

261

21

282

4

156

2

2

2

2

2

2

67

1

12

97.1

2

85.7

66.7
100.0

97.0
83.3

50.0
100.0

100.0

8

19

2

2

22
1

100.0

100.0

100.0

100.0

100.0

8
9

1
3

1

7
5

1

100.0
100.0

100.0
100.0

261

188

18

55

21

100.0

100.0

100.0
100.0

100.0

CORPORATION

Unit b a n k s ..................................
Banks operating branches

408

97
77

10,392
3,393

Unit banks ....................................
Banks operating branches.............

B a n k s ............................................

Non­
in s u re d

INSURANCE

B r a n c h e s .....................................

317
101
221

Unit banks ....................................
Banks operating branches.............

Non­
B a nks
d e p o s it
of
tr u s t
de­
com ­
p o s it 2
p a n ie s 3

DEPOSIT

United States—all offices.......

S ta te

N ot
m em ­
bers
F. R.
S ys­
te m

FEDERAL

T o ta l

In ­
su re d

P e rce n ta g e in s u r e d 1

Arkansas—all offices..............
B a n k s .............................................

365
246

362
243

B ra n c h e s .......................................

119

119

California—all offices..............
B a n k s ..............................................

2,730
193

2,719
187

B ra n c h e s .......................................

2,537

Unit banks ....................................

Unit banks ....................................
Banks operating branches .............

Colorado—all offices...............
B a n k s ..............................................

181
65

U

119
261
252

178
65

70
117

2,532
224
215

9
586
137

582
133

5
37
37

9

Connecticut—all offices..........
B a n k s ..............................................

2

52
85

48
85

36
18

119

63

2,730
193

2,719
187

1,922
91

484
14

313

2,537

2,532

1,831

470
18
17

84
81

74
119

261
252

178
65

70
117

224
215

44

47

122
117

113
4

11
7

2
12

16
1

37

244

9

9

5

403
67

399
63

209
30

129

2

99.5
99.2

1

98.9
100.0

23
44

19
44

9
21

98.9
100.0

100.0

1
1
6

100.0
100.0

58

4
2

100.0
100.0

231

5

100.0

100.0

78

98
6

4

99.5
99.2

100.0

100.0
100.0

37
37

85.8
85.3

37

84.8
100.0

1

4
4

8

207
8

38
29

2
2

1
1

18

181
65

196
158

100.0

3
3

3

6

1
1

1

183
70

183
70

29
41

99.5
97.8

100.0
100.0

85.8
85.3

84.8
100.0

99.3
95.5

94.1
100.0

86.4
100.0

100.0
100.0

100.0
100.0

449

336

336

179

113

Delaware—all offices..............
B a n k s ..............................................

101
22

101
22

9
1
20

91
20

9
5

32
2

10
2

10
2

2

2

2

100.0
100.0

B ra n c h e s .......................................

79

79

71

71

4

30

8

8

100.0

100.0

D. C.—all offices......................
B a n k s ..............................................

108
14

108
14

108
14

108
14

66
9

34
3

100.0
100.0

100.0
100.0

100.0

100.0

...................
Unit banks
Banks operating branches .............

11
11

1
13

11
11

11
9

1
13

B ra n c h e s .......................................

94
466
447

463
444

3
3

133

29

5
4

126
7

45
2

7

3
1

131
11

7

2

3
1

119

1

120

119

43

1

Hawaii—all offices .................
Banks
....................................

131
11

126
7

348
78

3
8

316
78

32
26

99.6
99.6

6
7

32
32

32

99.5
100.0

99.5
100.0

100.0

100.0

100.0
95.0
92.5

90.8
100.0

90.8
100.0

100.0
5
4

100.0
100.0

100.0

100.0
100.0

100.0
100.0

100.0

100.0

100.0

100.0

133

211

32

211

100.0
100.0

95.0
92.5

211

316
78




1

99.6
99.6

100.0
100.0

100.0

8

2

42
13

605
394

187
11

1
1

12

211

120

372
323

426
18

2
2

191
58

348
78

..............................

245
238

19

..................................

B ranches

8
8

605
394

19

3
8

31

210
198

19

19

Unit banks
Banks operating branches

57

463
444

637
426

B ra n c h e s .......................................

Unit banks ....................................
Banks operating branches .........

94

466
447

32
32

426
18

B ranches

100.0
100.0

3

429
18

429
18

637
421

1
8

3

Unit banks ....................................
Banks operating branches

Georgia—all offices.................
B a n k s ..............................................

1
13

3
2

94

94

Florida—all offices...................
B a n k s ..............................................

1
13

11
9

100.0

BRANCHES

449

113

AND

B ra n c h e s .......................................

92

.............
Unit banks
Banks operating branches.............

100.0
100.0
100.0

100.0

29
41

100.0

100.0
100.0

BANKS

B ra n c h e s .......................................

4

130
67

O
F

207
8

1
1
6

362
243

119

3

365
246

NUMBER

244
8

3
3

134

T A B L E 1 0 3 . NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1966— CONTINUED
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE
C o m m e rc ia l b a n k s and
n o n d e p o s it t r u s t c o m p a n ie s

All b a n k s

In s u re d

N on­
in s u re d

M e m b e rs F. R.
S ystem

T otal
T otal

S tate

Non­
Banks
d e p o s it
of
tru s t
de­
co m ­
p o s it 2
p a n ie s 3

165

165

165

165

111

B a n k s ............................................

25

25

25

25

9

B r a n c h e s .....................................

U
140

140

n
140

140

102

24

14

Illinois—all offices...................

1,066

1,058

1,066

1,058

427

103

528

5

528

5

Banks operating branches.............

B a n k s ............................................

11

1,061

11
14

1,053

1,057
4

1,049
4

B r a n c h e s .....................................

5

926

423

419

8

Indiana—all offices. ...
B a n k s ............................................

Unit banks ..................................
Banks operating branches.............

251
172

247
172

B r a n c h e s .....................................

507

924

911

B a n k s ............................................

674

661

Unit banks ....................................
Banks operating branches

478
1,96

465
196

B ra n c h e s ...................................

250

654

B a n ks

................................

Unit banks ..
......................
Banks operating branches

601

550
51

652
599

548
51

..............................

53

591

585

................................

348

342

...............................

243

243

B ra n c h e s

Banks

Unit banks
......................
Banks operating branches

B ra n c h e s




243
105

237
105

100.0

9

100.0

103

5

5

4

926

922

393

150

4

419

415

123

59
64

83

55
28

4

103

528

100.0

3
3

99.5

3

209

3

1

4

4

99.3

270

67

170

140

74

697

129
80

478
196

465
196

661

102

67
35

44
13

354
148

250

250

38

17

654

652

197

48

407

41

388

599

1

12

1

170

12

99.7

99.7

55

330

6

6

348

342

80

14

248

6

120

41

82

2

99.7

19

6

99.6
100.0

99.6
100.0

100.0

27

200

243

98.2

99.7

53

243

98.7

2

585

192
56

98.2

2

53

6
8

100.0

98.7

100.0

591

39
41

98.8
100.0

100.0

6

237
105

1

1

98.8
100.0

97.5
100.0

34
7
1

369
19

4

97.5
100.0

12

550
51

243
105

145
25

4

99.5

100.0

2

6

548
51

502

3

195

601

99.7
99.3

379

507

2

100.0

99.7

911

57

100.0

4

507

2

99.5
99.5

99.5
100.0
4

924
674

100.0

99.5

1

13
13

100.0

100.0
100.0

3

247
172

13

100.0

100.0

4

243
172

Com ­
m e rc ia l M u tu a l
b a n ks savings
of
ban ks
d e p o s it

100.0
100.0

5

53

Kentucky—all o ff ic e s ............

422

23

7

4
3

418
4

250

Kansas—all offices..................

1,053

3
1

1,049
4

8

507

Iowa—all offices .....................

1,061

3
6

1,057
4

5

930

8

11
14

All
b a n ks
of
de­
p o s it

100.0

99.0

99.0

98.3

98.3

97.5
100.0

100. 6

9 7.5
100.0

100.0

100.0
100.0

100.0

CORPORATION

Unit banks ....................................
Banks operating branches.............

11

Non­
in s u re d

INSURANCE

Idaho—all offices....................

In ­
s u re d

Tota l

DEPOSIT

N a­
tio n a l

Not
m em ­
bers
F. R.
Sys­
te m

FEDERAL

In ­
s u re d

P e rce n ta g e in s u r e d 1

N o n in s u re d

S ta te an d ty p e o f b a n k o r o ffic e
T o ta l

M u tu a l s a v in g s b a n k s

Louisiana—all offices..............

506

505

B a n k s ...................................... ..

220

219

Unit banks ....................................

120
100

119
100

1

506

505

192

1

220

219

47

1

120
100

275
162

119
100

15
32

102
60

286

286

145

1

99.8

1

99.5

286

286

Maine—all offices....................

272

262

10

227

221

95

67

76

69

7

44

41

21

14

3

Unit banks ....................................
Banks operating branches.............

35
41

29
40

6
1

11
33

9
32

1
13

6
15

B r a n c h e s .....................................

196

193

3

183

180

74

Maryland—all offices..............

580

572

8

537

529

249

61

B a n k s ............................................

128

127

1

122

121

49

7

59
68

58
63

20
29

45
32

2
1

24
8

13

13

65

1

6

6

415

408

200

54

154

Massachusetts—all office s....

1,123

802

321

776

768

443

157

168

6

B a n k s ............................................

340

165

175

162

157

90

17

50

4

1

7

Michigan—all offices..............
B a n k s ............................................

Unit banks ....................................
Banks operating branches .............

637

146

1,335

1,331

347

345

157
190

156
189

5
4
60

313

1

178

98.5

99.2

9.8

97.5

4.5

1

2

1

169

26

143

81.5

99.7

is ! 4

307

3

1

132

1

114

33
66

34

71.5

465

156
189

347

48.7

99

345

157
190

2

30.9
61.0

559

1,331

347

37

93
77

118

1,335

1
1

9 8.6

37

170

140

2

69
63

1

99.7

100. 0

9 9.5

2

988

986

460

351

175

2

729

4

732

728

200

29

499

4

B a n k s ............................................

724

720

723

719

714
5

192
2

29

496

B r a n c h e s .....................................

9

9

9

9

6

3

100.0

449

449

449

449

136

295

190

190

190

190

36

148

100.0
100.0

Mississippi—all offices
B a n k s ............................................

Unit banks ....................................
Banks operating branches .............

91
99

4

4

91
99

B r a n c h e s ......................................

259

732

723

91
99

B a n k s .............................................

661

652

Unit banks ....................................
Banks operating branches .............

590
71

581
71

B r a n c h e s ......................................

71

135

134

9
9

71

Montana—all office s...............
B a n k s ............................................

132

131

129
3

128
3

B r a n c h e s .....................................

3

3




9
27

29

493
3

9

81
67

259

100

723

119

508

652

98

661

475

1

1

590
71

581
71

77
21

442
33

71

21

134

5
1

40

131

49

40

132

129
3

128
3

3

3

47
2

2

40

1

99.4

99.4

100.0

1

99.4

100.0
6
6

3
3

33

135

99.5

10 0.0
100.0

147

732

71

1

1

99.5
100.0

1

4

4

99.8

1

6

3

99.2
99.1

99.0

100.0

99.4

100.0

100.0
100.0
100.0
100.0
100.0

1

1

100.0

99.2
99.1

99.0
100.0

100.0

1

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

135

Unit banks ....................................
Banks operating branches.............

91
99

194

259

259

Missouri—all office s...............

718
5

99.8

1

BRANCHES

986

733

99.5

AND

988

715
rj

2.1
7.2

99.7

10 0. 0

B r a n c h e s .....................................

719
5

93.2
99.1

99.8

1

1

Minnesota—all offices.............

Unit banks ....................................
Banks operating branches .............

100.0
100.0
100.0
100.0
100.0

99.2

8

353

4

99.2

100.0

2
6

17

611

100.0

98.5

1

87.5

83.3
100.0
100.0

95
83

3
1

614

98.4

91.1

BANKS

783

1

98.5

81.8
97.0

O
F

B r a n c h e s 4...................................

37
28

17
33

24
66

8 2.9
97.6

NUMBER

1
1

41
116

4

43

445

44
118

93.2

43

452

96
79

97.4

90.8

8

Banks operating branches.............

43
122

96.3

4

3

B r a n c h e s .....................................

139
201

4

28

53

1
6

99.2

4
1

20
8

219

59
69

Unit banks ....................................
Banks operating branches.............

58
64

100.0

9 9.2

6

B a n k s ............................................

100.0

100.0

113

B ra n c h e s ......................................

99.5

1 00.0

1

T A B L E 1 0 3 . NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

136

DECEMBER 31, 1966— CONTINUED
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE
C o m m e rc ia l b a n k s and
n o n d e p o s it t r u s t c o m p a n ie s

A ll b a n k s

Non­
in s u re d

M e m b e rs F. R.
System

T otal
T otal

N a­
tio n a l

18

1

10

100.0

100.0

79

40

29

10

100.0

100.0

6

9

104

B ra n c h e s ................................

43

995

992

253

250

79
171

9

3
6

144
126

108
18

14
13

12
1

304
294

285
9

1
2

3

3
3
3

1

99.8
100.0

100.0

3

3

3

70

43

70
34

405
28

70

37

26

105

79

2

24

52

1

75

72

19

49
26

46
26

31
21

1

15
4

33

33

27

1

42
32

3

100.0

42

98.0

97.2

32

97.2

100.0

100.0

100.0

100.0

100.0

941

612

215

114

3

51

5
1

229

148

44

37

3

21

21

3

H
23

B ra n c h e s................................

742

742

712

712

464

171

165

165

165

165

89

14

34

7

10
11

30

62

64

10
11

30

77

N ew M exico— all offices —
B a n k s .......................................

23

64

64

100.0
100.0

100.0

100.0

100.0
100.0

100.0
100.0

100.0

100.0

100.0
100.0

6
17

100.0
100.0

100.0
100.0

101

55

7

39

100.0

100.0

2,396

2,364

1,210

1,008

146

26

336

311

190

95
95

27
56

83

38

20

15
5

4
1

2,060

2,053

1,020

925

108

6

24
40

24
40

B ra n c h e s................................

101

101

101

N ew York— a ll o ffic e s ...........
B a n k s .......................................

2,765

2,733

32

Unit banks ..............................
Banks operating branches.......

462

202
260

437

25

B ra n c h e s 4..............................

2,303

2,296




100.0 '
100.0

4

24
40

19
6
1

100.0

100.0

15
19

24
40

183
254

100.0

100.0
100.0

100.0

232

11
33

100.0

10

944

U
104

96.0

93.9
100.0

24
8

10

3

3

69
160

95.9
100.0

24
8

5

72
160

100.0
100.0

100.0

3

3

3

100.0

100.0
100.0

1
1

108

99.8

99.8
100.0

159
177

140
171

18
20

100.0

6

369

369

99.1

98.9

5

126

126

95.6

94.0

90.3
97.2

100.0
100.0

1

243

243

99.7

99.7

100.0

43
83

43
83

92.4
98.1

100.0

CORPORATION

107

3
6

70

147

411
28

INSURANCE

9

3
6

70

64

DEPOSIT

29

150

Unit banks ..............................
Banks operating branches........

99.8

79

B ra n c h e s ................................

82
171

99.8

29

405
28

N ew H am p sh ire— a ll o ffices
B a n k s .......................................

Unit banks ..............................
Banks operating branches.......

99.8

5

29

N ev ad a— all o ffic e s ...............
B a n k s .......................................

New Jersey— all offices..........
B a n k s .......................................

5

1

79

79

73
34

1

C om ­
m e rcia l M u tu a l
b a n ks savings
ban ks
of
d e p o s it

433

29

Unit banks ..............................
Banks operating branches.......

All
ba n ks
of
de­
p o sit

462

B ra n c h e s ................................

9

N on­
in s u re d

468

433

6

In ­
s u re d

439

462

439

Unit banks ..............................
Banks operating branches .......

T o ta l

6

468

411
28

Non­
Banks
d e p o s it
of
tr u s t
de­
com ­
p o s it 2
pan ie s 3

6

N eb rask a— all o ffic e s ...........
B a n k s .......................................

Unit banks ..............................
Banks operating branches.......

S tate

N ot
m em ­
bers
F. R.
S ys­
te m

FEDERAL

In ­
s u re d

P e rcen tage in s u r e d 1

N o n in s u re d

In s u re d
S ta te a n d ty p e o f b a n k o r o ffic e
T o ta l

M u tu a l sa vin g s b a n k s

North Carolina—all offices —
Banks.....................................

927

922

5

927

922

304

110

137

136

1

137

136

27

4

Banks operating branches.............

56
81

Branches...............................
North Dakota—all offices.......
Banks....................................

Unit banks ....................................
Banks operating branches.............

Branches...............................
Ohio—all offices......................
Banks.....................................

1

56
81

790

786

4

228

223

5

167

123

44
61

1,547
538

292
246

Branches...............................

I. ,009

Oklahoma—all offices.............
Banks.....................................

420

Unit banks ....................................

Unit banks ....................................
Banks operating branches

403

4

99.5

99.5

228

223

52

5

166

5

97.8

97.8

119

3

98.2

167

461
419

42

324

1
1

50

537

121
43

164

33
9

42

3

59

10

1
2

1,545

798

426

536

226

125

291

246

290
246

1,009

461

462
420

419

3
3

3

321
185

76
49

121

572

301

253

25
23

1,947

12

543

10

64

231

49

13

273

218

12

43

1,884

1,872

1,202

244

426

9

536

354

37

145

7

8
5

14

2
1
1

1,336

848

207

189

180

9

139

130

59

26

18

16

2

11

9

4

18

16

2

11

9

171

164

1

128

121

4
55

25

430

426

4

430

426

221

11

128

124

4
4

128

124

26

15
19

Rhode Island—all offices.......
Banks.....................................

Unit banks
.............
Banks operating branches .............

Branches...............................
South Carolina—all o ffic e s ....
Banks.....................................

61
67

57
67

302

250

249

167

166

129
37

Branches .............................

83

83

1
1

1

302

250

249

167

166

19
18

2

6
1

32

141

25

107

83

83

42

1
1

100.0

75

3
3

7

100.0
100.0

100.0

100.0

'100.0

100.0

100.0

75

99.5

99.5

7

98.7

100.0
100.0

3

92.3

92.3

98.7

98.1
99.6

98.1
99.6

68

99.9

99.9

100.0

50

50

95.2

93.5

7

7

88.9

81.9

100.0
100.0

7

43

100.0
100.0

81.8

100.0

95.9

94.5

100.0

99.1

99.1

7

43

4
4

34

25
9

1

96.1

68

92

76

129
37

96.2

2

102

130
37

99.4

1

1
6

4

5

99.4

2

1

1
6

194

195

100.0

2

1

6
3
3

100.0
100.0

1

1

2

5
21

100.0
100.0

1

2

1

...

100.0

1

2

2

100.0

100.0

10 0.0
100.0

9

281

100.0

100.0
100.0

96.9

96.9

100.0

100.0

100.0

100.0

1

99.6

99.6

1

99.4

1

93.4

99.2

100.0

100.0

93.4

99.4

99.2

100.0

100.0

137

130
37

57
67

302

302

Unit banks ....................................
Banks operating branches

61
67

201
153

99.8

99.7

BRANCHES

1,338

34

99.7

100.0
100.0

1

169
7
1
77

99.9
99.8

100.0

322

546

1

1

1

52

24
25

1

1

176

325

2

1,406

1

1

100.0

33

1,404

Branches4.............................

1

1

1

42

303
233

304
239

1

189
31

312
234

313
240

96.7

379
40

9
1

Unit banks ....................................
Banks operating branches.............

96.7

183

220

98.4
97.7

380
40

27
25

98.2

98.4
97.7

136

93
133

98.8

AND

1,959

98.8

1

273

1

10 0 .0

2

86

42

42

327

123

1,009

1,009

Pennsylvania—all offices.......
Banks.....................................




106

1,546

1

1

274

South Dakota—all offices
Banks.....................................

277

1

537

274

..............

786

1,546

........................

Branches

790

2

24
26

Unit banks ..................., ..............
Banks operating branches

1

59

379
40

553

48
57

44
61

27
26

Branches4

1
3

2
1

380
40

53

7
20

121
43

291
246

99.3
100.0

56
80

BANKS

Oregon—all offices..................
Banks.....................................

3

99.5

99.3

O
F

Branches...............................

462

164

99.5

1

NUMBER

Unit banks ....................................
Banks operating branches.............

56
80

5
105

T A B L E 1 0 3 . NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

138

DECEMBER 31, 1966— CONTINUED
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE
C o m m e rc ia l b a n k s and
n o n d e p o s it t r u s t c o m p a n ie s

A ll b a n k s

In s u re d

M u tu a l sa vin g s b a n ks

N o n in s u re d

S ta te a n d ty p e o f b a n k o r o ffic e
In ­
s u re d

Non­
in s u re d

M e m b e rs F. R.
S ystem

T otal
Total

N a­
tio n a l

B a n k s ............................................

676

671

298

294

5

676

671

298

294

177
117

21
56

4

1

378

377

10

1,200

1,190

4

180
118

177
117

3
1

180
118

B r a n c h e s .....................................

378

377

Texas—all offices....................

1,200

1,190

B a n k s ............................................

Unit banks ....................................
Banks operating branches .............

1,147

1,094
53

1,137

1,084
53

10

10

1,147

1,094
53

1,137

1,084
53

309

In ­
s u re d

T otal

N on­
in s u re d

All
b a n ks
of
de­
p o s it

Com ­
m e rcia l M u tu a l
b a n ks savings
of
banks
d e p o s it

36

326

4

1

99.4

9

208

3

1

99.0

232

27

118

1

99.7

99.7

565

74

551

10

99.2

99.2

77

546

526
20

70

66
4

152
56

521

492
29

1

1

98.9
99.2

10

99.1

10

99.1
100.0

99.4
99.0

98.9
99.2

INSURANCE

Unit banks ....................................
Banks operating branches .............

Non­
B a nks
d e p o s it
of
tru s t
de­
com ­
p o s it 2
p a n ie s 3

DEPOSIT

Tennessee—all offices............

S tate

Not
m em ­
bers
F. R.
S ys­
te m

FEDERAL

T o ta l

P e rce n ta g e in s u r e d 1

99.1

99.1
100 0

53

53

53

53

19

4

30

100.0

100.0

166

166

166

166

7
1

4
1

54

100.0

100.0

55

13

12

30

29

B a n k s ............................................

Unit banks ....................................
Banks operating branches .............

55

84
21

55

55

34
21

34
21

B r a n c h e s .....................................

111

111

Vermont—all offices................

115

114

1

B a n k s ............................................

54
S
O

53

1

Unit banks ....................................
Banks operatinq branches .............

24

29
24

84
21

9
k

5

111

58

106

60

46

1

8

47

27
U

20
U

1
I

6

48

26
22

25
22

13

B r a n c h e s .....................................

61

61

59

59

863

863

863

496

251

251

26

156

g
6

4

2
2

2

211

115
136

115
136

251

251

114

43
71

612

612

612

612

27
24

382

105

125

Washington—all offices..........

544

543

1

519

518

386

39

93

1

B a n k s ............................................

100

1

95

94

28
U
U
358

10

56

l
i

Unit banks ....................................
Banks operating branches .............

115
186

B r a n c h e s .....................................

Unit banks ..................................
Banks operating branches.............

B ra n c h e s 4..................................




99

57
43

56
43

444

444

1

115
186

55
40

54
40

424

424

51

86

g
29

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

45
41

35
21

100.0

100.0

9

33

863

24

100.0
100.0

100.0

111

1

100.0

100.0
100.0

107

Virginia — all offices.................
B a n k s ............................................

100.0

20
10

100.0

100.0
100.0

100.0
100.0

100.0

25

99.8

99.8

5

37

100.0

25

5

99.0

99.0

20

2
8

i\

3

98.2
100.0

20

100.0

100.0
100.0

98.2
100 0

100.0

100.0
100.0

100.0

1

CORPORATION

B r a n c h e s .....................................

Utah—all offices......................

W est V irg in ia— a ll o ffices.
Banks..............................

Unit banks ............................
Banks operating branches

190
190

190
189

190

99.5

189

190

189

767

764

764

761

137

594

591

591

588

112

99.5

99.5

189

190

99.5

99.5

99.5

Branches........................
W isconsin— all o ffic e s ...
Banks...........................

99.9
424

100.0

25

134

100.0

100.0

70

4
1

15

40

15

100.0
100.0

100.0
100.0

100.0

100.0

100.0
100.0

100.0

100.0

Pacific Islan d s— a ll o ffic e s 5
Banks................................

35.7

35.7

Branches7........................

38.5

38.5

92.2

92.2

69.2

66.7

94.2

100.0
100.0

100.0

173

94.2

Branches.....................

108

108

108

173

173

173

W yom ing— all o ffic e s __
Banks...........................

69

68

Unit banks .......................
Banks operating branches.

1
1

Branches.....................

39
1
1

15

99.8

99.8

100.0

NUMBER

337
87

99.8

108

99
13

99.8

480

Unit banks .......................
Banks operating branches.

O th er area

O BANKS
F

Unit banks 6............................
Banks operating branches .......

P an am a C anal Z o n e all o ffic e s ..........................
Banks...........................

AND

Unit banks .......................
Banks operating branches .

Branches8...................

Unit banks .........................
Banks operating branches..

Branches9...................
Virgin Islan d s— all offices.
Banks................................

Unit banks ............................
Banks operating branches . . . .

Branches10.......................

167

154
9

4

9

3
6

1
2
3
9

154

145

154

19

14

153

7

2

75.0
66.7

6
145

129

66.7
66.7

100.0
100.0
10 0.0

77.8

20.0

100.0
100.0

100.0

100.0

100.0

100.0

11

75.0

33.3

6
5
1

100.0

100.0

Mariana Islands: 5 branches (4 insured on Guam and 1 noninsured on Saipan), operated by a
national bank in California.
Guam: 1 insured branch, operated by an insured bank in Hawaii (not a member of F. R. System).
Caroline Islands: 2 noninsured branches (1 each on Palau Islands (K oror) and Ponape Island
(Kolonia), operated by a bank in Hawaii (not a member of F. R. System).
Marshal! Islands: Kwajalein A to ll: 2 noninsured branches operated by a bank in Hawaii (not a
member of F. R. System).
Midway Islands on Sand Island: 1 noninsured branch operated by a bank in Hawaii (not a
member of F. R. System).
Wake Island: 1 noninsured branch operated by an insured bank in Hawaii (not a member of
F. R. System).
8 Panama Canal Zone: 2 noninsured branches operated by 2 national banks in New York.
9 Puerto Rico: 16 insured branches operated by 2 national banks in New York.
10 Virgin Islands: 8 insured branches operated oy 2 national banks in New York.

Back figures:

See the Annual Report for 1965, pp. 118-125, and earlier reports.

139

1 Nondeposit tru st companies are excluded in computing these percentages.
2 Includes 10 noninsured branches of insured banks: 8 branches in the Pacific Islands and 2 in
the Panama Canal Zone.
3 Includes one tru st company in Massachusetts, member of the F. R. System, operating one branch.
4 Massachusetts: 1 branch operated by a noninsured bank in New York.
Pennsylvania: 2 branches: 1 operated by a noninsured bank in New York and 1 operated by a
national bank in New Jersey.
New Y ork: 7 branches operated by two insured banks in Puerto Rico (not members of F. R.
System).
Oregon: 1 branch operated by a national bank in California.
Washington: 2 branches operated by a national bank in California.
5 United States possessions (American Samoa, Guam, Midway Islands, and Wake Island); Trust
Territo rie s (K w a ja lein, Palau Islands, Ponape Island, Saipan and Truk Atoll).
6 American Samoa.
7 Pacific Islands: 13 branches.
Caroline Islands on T ru k A toll (Moen Island); 1 noninsured branch, operated by a national bank
in California.




137

17

13

BRANCHES

Puerto Rico— a ll o ffices .
Banks...........................

ASSETS AND LIABILITIES OF BANKS
Table 104.

Table 105.

Table 106.

Table 107.

Table 108.

Table 109.
Table 110.




Assets and liabilities of all banks in the United States (States and other
areas), June 30,1966
Banks grouped according to insurance status and type of bank
Assets and liabilities of all banks in the United States (States and other
areas), December 31,1966
Banks grouped according to insurance status and type of bank
Assets and liabilities of insured commercial and insured mutual savings
banks in the United States (States and other areas), December call dates,
1962 through 1966
Assets and liabilities of insured commercial banks in the United States
(States and other areas), December 31, 1966
Banks grouped by class of bank
Assets and liabilities of insured commercial banks operating throughout
1966 in the United States (States and other areas), December 31,1966
Banks grouped according to amount of deposits
Average assets and liabilities of insured commercial banks in the United
States (States and other areas), by State, 1966
Distribution of insured commercial banks in the United States (States and
other areas), December 31, 1966
Banks grouped according to amount of deposits and by ratios of selected
items to assets and deposits

O
F
BANKS

National banks and State banks in the D istrict of Columbia not
members of the Federal Reserve System: Office of the Com ptroller
of the Currency.
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.

LIABILITIES

Sources of data

AND
141




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 immedi­
ately reduce the unpaid balances of the loan but are assigned or
pledged to assure repayment at maturity.
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 subm itted 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.
Additional data on assets and liabilitie s of all banks as of June
30, 1966, and December 31, 1966, are shown in the C orporation’s
semiannual publication, “ Assets, Liabilities, and Capital Accounts,
Commercial and Mutual Savings Banks,” Report of Call No. 76, and
Report of Call No. 78. Data from Call No. 75, A pril 5, 1966, and
Call No. 77, September 20, 1966, were not tabulated for all insured
banks. Comparable tabulations fo r State and national banks were
not feasible because of a change in the form used for national
institutions.

ASSETS

Statements of assets and liabilitie s are submitted by insured com­
m ercial 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 pre­
mium reserves.
Assets and liabilitie s held in or administered by a savings, bond,
insurance, real estate, foreign, o r any other department of a bank,
except a trust departm ent, are consolidated with the respective
assets and lia b ilitie s of the com m ercial department. “ Deposits of
individuals, partnerships, and corporations” include trust funds
deposited by a trust departm ent in a commercial or savings de­
partment. Other assets held in trust are not included in statements
of assets and liabilities.
In the case of banks w ith one or more domestic branches, the
assets and liabilitie s reported are consolidations of figures for the
head office and all dom estic branches. In the case of a bank with
foreign branches, net amounts due from its own foreign branches
are included in “ O ther assets,” and net amounts due to its own
foreign branches are included in “ Other liabilitie s.” Branches out­
side the 50 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 fo r the States in which the parent banks are
located.
Demand balances w ith and demand deposits due to banks in the
United States, except private banks and American branches of for­
eign banks, exclude reciprocal interbank deposits. Reciprocal inter­
bank deposits arise when two banks maintain deposit accounts with
each other.
Individual loan items are reported gross instead of net of valua­
tion reserves. A ccord in gly, reserves for losses on loans are shown
separately.

Table 104. ASSETS AND LIABILITIES OF ALL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), JUNE 30, 1966
142

B A N K S G RO UPED AC C O R D IN G TO INSU R A N C E S T ATU S A N D TY PE OF B A N K
(A m ounts in th o u s a n d s o f d o lla rs )
C o m m e rc ia l b a n ks an d n o n d e p o s it t r u s t
c o m p a n ie s

All b an ks

M u tu a l sa vin g s b a n ks

N o n in s u re d
A sse t, lia b ility , o r c a p ita l a c c o u n t ite m
Total

In s u re d

Non­
in s u re d

T otal

In s u re d

Non­
d e p o s it
tru s t
com ­
p a n ie s 2

T ota l

In s u re d

Non­
in s u re d

388,372,656

384,907,833

3,147,786

317,037

59,415,713

51,451,542

7,964,171

61,152,141

60,462,918

689,223

60,186,603

59,608,563

500,848

77,192

965,538

854,355

111,183

C u rre n c y a n d c o in .......................................................................
R e serve w ith F. R. B a n ks ( m e m b e r b a n k s )......................
D e m a n d b a la n c e s w ith b a n k s in U. S.................................
O th e r b a la n c e s w ith b a n k s in U. S .......................................
B a la n ce s w ith b a n k s in fo re ig n c o u n tr ie s .........................
Cash ite m s in p ro ce ss o f c o lle c tio n .....................................

5,425,600
18,094,230
13,638,910
729,842
252,896
23,010,663

5,377,958
18,094,230
13,133,947
669,251
223,431
22,964,101

47,642

5,246,935
18,094,230
12,667,647
464,863
223,431
22,911,457

18,761

1,338

158,566

131,023

27,543

504,963
60,591
29,465
46,562

5,267,034
18,094,230
13,097,769
525,377
252,896
22,949,297

395,162
22,023
29,452
35,450

34,960
38,491
13
2,390

541,141
204,465

466,300
204,388

74,841
77

61,366

52,644

8,722

Securities—total..................................................................

113,319,979

110,110,107

3,209,872

102,500,391

101,533,236

806,840

160,315

10,819,588

8,576,871

2,242,717

U. S. G ov’t, o b lig a tio n s ( in c lu d in g g u a ra n te e d ) ..............
O b lig a tio n s o f S ta te s a n d s u b d iv is io n s ..............................
S e c u ritie s o f F e d era l a g e n c ie s a n d c o r p o ra tio n s ( n o t
g u a ra n te e d by U. S . ) ..............................................................
O th e r s e c u ritie s 3...........................................................................

58,741,365
40,986,077

56,612,041
40,692,508

2,129,324
293,569

53,618,931
40,701,718

53,179,892
40,426,956

373,644
221,753

65,395
53,009

5,122,434
284,359

3,432,149
265,552

1,690,285
18,807

7,579,016
6,013,521

7,416,755
5,388,803

162,261
624,718

6,589,816
1,589,926

6,454,496
1,471,892

124,025
87,418

11,295
30,616

989,200
4,423,595

962,259
3,916,911

26,941
506,684

261,014,034

253,775,901

7,238,133

46,628,160

41,103,069

Loans and discounts, net—total............
V a lu a tio n r e s e rv e s .....................................................

Loans and discounts, gross—total
Real e s ta te lo a n s — t o t a l.......................................

Secured by farm land ..................................................
Secured by residential properties:
Insured by F H A .............
Guaranteed by V A .......................................
Not insured or guaranteed by FHA or V A .........
Secured by other properties .........................................

Loa ns to c o m m e rc ia l a n d fo re ig n b a n k s . .
Loa ns to o th e r fin a n c ia l in s titu t io n s ..............
F ed era l fu n d s sold ( lo a n e d ) ..............................
Loa ns to b ro k e rs an d d e a le rs in s e c u ritie s .
O th e r lo a n s fo r c a rry in g s e c u r it ie s .................
Loans to fa rm e r s ( e x c lu d in g real e s ta te ). .
C o m m e rc ia l an d in d u s tria l lo a n s ....................
O th e r lo a n s to in d iv id u a ls ..................................
A ll o th e r lo a n s (in c lu d in g o v e r d r a f ts ) ...........

Miscellaneous assets—total....................................
B a n k p re m is e s , f u rn itu re a n d fix tu re s , a n d real e s ta te j
— n e t o f m o rtg a g e s a n d o th e r lie n s .....................
A ll o th e r m is c e lla n e o u s a s s e ts ...................................




214,385,874 I 212,672,832

1,667,602

45,440

5,525,091

4.311,629

4,286,656

24,973

4,085,760

4,076,167

9,342

251

225,869

210,489

15,380

265,325,663

258,062,557

7,263,106

218,471,634

216,748,999

1,676,944

45,691

46,854,029

41,313,558

5,540,471

92,523,715

5,666,013

52,306,219

51,998,999

292,872

14,348

45,883,509

40,524,716

5,358,793

21,815,317
20,767,186
14,000,109
12,973,369
39,067,374 \ 36,260,515
20,225,385
19,468,629

1,048,131
1,026,740
2,806,859
756,756

7,768,589
2,654,574
23,376,946
15.478.064

7,630,101
2,603,391
23,310,586
15,448,619

135,027
51,010
59,572
26,434

3,461
173
6,788
3,011

14,046,728
11,345,535
15,690,428
4,747,321

13,137,085
10,369,978
12,949,929
4 ,020,010

909,643
975,557
2,740,499
727,311

98,189,728

3,081,543

3,054,016

27,527

3,028,046

3,006,302

20,829

915

53,497

47,714

5,783

1,994,243
13,983,149
2,129,473
5,366,337
3,295,460
8,502,934
77,877,049
48,664,629
5,322,661

1,953,138
13,822,236
2,060,973
5,238,176
3,231,588
8,483,373
77,218,954
48,300,811
5,229,593

41,105
160,913
68,500
128,161
63,872
19,561
658,095
363,818
93,068

1,973,429
13,971,081
2,129,473
5,349,835
3,287,201
8,501,090
77.734.064
47,928,186
5,291,056

1,932,344
13,810,322
2,060,973
5,221,824
3,224,576
8,481,529
77,085,497
47,726,040
5,206,895

40,845
160,188
68,500
119,536
54,081
19,270
643,288
199,357
79,007

240
571

20,814
12,068

20,794
11,914

20
154

8,475
8,544
291
5,279
2,789
5,154

16,502
8,259
1 844
142,985
736,443
31,605

16,352
7,012
1,844
133,457
574,771
22,698

150
1,247
9,528
161,672
8,907

12,302,215

12,010,449

291,766

11,299,788

11,093,202

172,496

34,090

1,002,427

917,247

85,180

5,899,674
6,402,541

5,800,336
6,210,113

99,338
192,428

5,439,253
5,860,535

5,397,058
5,696,144

22,887
149,609

19,308
14,782

460,421
542,006

r 403,278
513,969

57,143
28,037

CORPORATION

11,428,994

INSURANCE

436,359,375

DEPOSIT

447,788,369

Cash, balances with other banks, and cash collection
items—total...................................................................

Total assets.

FEDERAL

Banks of
d e p o s it 1

Total liabilities and capital accounts.................................. 447,788,3

436,359,375

11,428,994

388,372,656 | 384,907,833

3,147,786

317,037

59,415,713

51,451,542

7,964,171

Business and personal deposits—to ta l......................... j 331,907,563

323,317,776

8,589,787

278,219,267

276,672,377

1,418,408

128,482

53,688,296

46,645,399

7,042,897

In d iv id u a ls , p a rtn e rs h ip s , a n d c o rp o ra tio n s -d e m a n d | 132,270,233

131,402,041

868,192

753,264

86,823

429,338

401,233

28,105

2,253,525
129,148,516

2,058
866,134

131,840,895

2,255,583
129,585,312

131,000,808

185,267,704

7,627,951

139,650,243

139,037,084

4 6 , 080,2 1 4

311,425

91,339,778
1,153,276
814,845
46,342,344

6,741,675

6,648,031

93,644

39,032,557

38,810,524

11,030,145
252,741
15,035,176
12,714,495

10,994,334
249,389
14,915,946
12,650,855

16,338,708

Deposits of savings and loan associations .......................................
Other deposits of individuals, partnerships, and corporations ........

2,255,583
130,014,650

In d iv id u a ls , p a r tn e r s h ip s , a n d c o rp o r a tio n s — t im e . . .

192,895,655

Savings deposits ............................................................................... 144,535,729
Deposits accumulated for payment of personal loans ......................
1,153,442
Deposits of savings and loan associations .......................................
814,845
Other deposits of individuals, partnerships, and corporations .......... 46,391,639

2,253,525
128,747,283

2,058
751,206

429,338

401,233

28,105

53,245,412

46,230,620

7,014,792

18,490

49,295

23,543

25,752

15

13,546

13,546

218,676

325

38,725

35,693

3,032

34,259
3,307
119,230
61,880

325

7,188
415
1,977
29,145

5,961
370
1,977
27,385

1,227
45

16,105,417

231,451

489

1,351

1,351

14,471,231
585,362
875,583
173,241

32,267

489

145
1,206

145
1,206

152,549
44,949

14,503,987
587,048
1,028,132
218,190

152,549
44,949

6,851,913

195,671

7,047,584

6,851,913

195,253

418

773,538
4,332,400
1,457,381
288,594

18,961
55,963
89,322
31,425

792,499
4,388,363
1,546,703
320,019

773,538
4,332,400
1,457,381
288,594

18,655
55,963
89,210
31,425

306

385,086,981

9,239,431

340,598,040

338,404,538

2,063,788

129,714

53,728,372

46,682,443

137,222,884
1,150,609
813,997

7,312,845
2,833

571,515

6,728,129

6,634,485

93,629

222,033

38,993,832

38,774,831

35,811
3,352
119,230
63,640

11,022,957
252,326
15,033,199
12,685,350

10,988,373
249,019
14,913,969
12,623,470

16,106,768

231,940

16,337,357

14,504,132
588,254
1,028,132
218,190

14,471,376
586,568
875,583
173,241

32,756

Foreign government and bank deposits—to ta l.............

7,047,584

Foreign g o v e rn m e n ts , c e n tra l b a n k s , e tc .— d e m a n d .
F oreign g o v e rn m e n ts , c e n tra l b a n k s , e tc .— t im e .........
B a n ks in fo re ig n c o u n tr ie s — d e m a n d ...............................
B a n ks in fo re ig n c o u n tr ie s — t im e .......................................

792,499
4,388,363
1,546,703
320,019

394,326,412

Government deposits—to ta l...................
U n ite d
U n ite d
S ta te s
S ta te s

S ta te s G o v e rn m e n t— d e m a n d .
S ta te s G o v e rn m e n t— t im e .........
and s u b d iv is io n s —d e m a n d . . . .
an d s u b d iv is io n s — t im e ...............

Domestic interbank deposits—total
C o m m e rc ia l b a n k s in th e U.
C o m m e rc ia l b a n k s in th e U.
M u tu a l sa v in g s b a n k s in th e
M u tu a l s a vin g s b a n k s in th e

S.— d e m a n d . . . .
S.— t im e ..............
U. S.— d e m a n d .
U. S.— t im e ........

Total deposits.

182,948,695
211,377,717

181,538,230
203,548,751

1,686

1,410,465
7,828,966

182,496,501
158,101,539

181,115,368
157,289,170

848

1,686

1,293,063
770,725

6,988,908
132

l',760

112

88,070

41,644

452,194
53,276,178

7,045,929

46,259,581

422,862

29,332
7,016,597

17,264,981

16,272,294

992,687

16,339,431

15,549,092

F e d e ra l fu n d s p u rc h a s e d (b o rro w e d ).
O th e r lia b ilitie s fo r b o rro w e d m o n e y . .
A ll o th e r m is c e lla n e o u s lia b ilit ie s . ........

761,483

28,856

925,550

723,202

202,348

2,354,637
2,102,425
12,807,919

2,351,637
1,878,801
12,041,856

3,000
223,624
766,063

2,354,637
2,010,447
11,974,347

2,351,637
1,786,853
11,410,602

3,000
220,537
537,946

3,057
25,799

91,978
833,572

91,948
631,254

30
202,318

411,591,393

401,359,275

10,232,118

356,937,471

353,953,630

2,825,271

158,570

54,653,922

47,405,645

7,248,277

36,196,976

35,000,100

1,196,876

31,435,185

30,954,203

322,515

158,467

4,761,791

4,045,897

715,894

1,841,955
8,887,512
17,124,392
8,343,117

1,792,222
8,753,880
16,547,497
7,906,501

49,733
133,632
576,895
436,616

1,838,796
8,887,512
13,878,438
6,830,439

1,789,063
8,753,880
4 3 ,7 0 1 ,7 2 9
6,709,531

49,433
85,509
104,851
82,722

300
48,123
71,858
38,186

3,159

3,159

3,245,954
1,512,678

2,845,768
1,196,970

400,186
315,708

14,328

13,891

437

13,821

13,559

211

51

507

332

BANKS

Miscellaneous liabilities—to ta l..............

O
F

Demand ..............
T im e ...................

848

46,207,043

LIABILITIES

267,183

C e rtifie d a n d o f fic e r s ’ c h e c k s , le tte r s o f c re d it,
tra v e le r s ’ c h e c k s , e tc .............................................................

53,195,951
166

AND

300,783
2,701

ASSETS

91,015,841
1,150,575
813,997
46,056,671

175

Total liabilities (excluding capital accounts).
Capital accounts—to ta l.................
P re fe rre d c a p ita l..............................
C o m m o n s t o c k ..................................
S u r p lu s ..................................................
U n d iv id e d p r o fits a n d re s e rv e s .
N u m b e r o f b a n k s 4.

Back figures:

See the Annual Report fo r 1965, pp. 130-131, and earlier reports.




143

1 Includes asset and lia b ility figures for 17 branches of foreign banks (tabulated as banks)licensed to do a deposit business in the State of New York. Capital is not allocated to these branches by the parent banks.
2 Amounts shown as deposits are special accounts and uninvested trust funds with the latter classified as demand deposits of individuals, partnerships, and corporations.
3 Excludes corporate stocks, other than Federal Reserve bank stock, of national banks; reported with “ All other miscellaneous assets.”
4 Includes 8 noninsured banks of deposit for which asset and lia b ility data are not available.

Table 105. ASSETS AND LIABILITIES OF ALL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1966
B A N K S G RO UPED A C C O R D IN G TO INSU R A N C E S T ATU S A N D TY PE O F B A N K
(A m ounts in th o u s a n d s o f d o lla rs )

144

C o m m e rc ia l b a n k s a n d n o n d e p o s it t r u s t
c o m p a n ie s

All b an ks

M u tu a l sa vin g s b a n ks

N o nins iu re d
T otal

A sse t, lia b ility , o r c a p ita l a c c o u n t ite m

In s u re d
B anks of
d e p o s it1

Non­
d e p o s it
tru s t
com ­
p a n ie s 2

402,946,336

3,258,593

69,294,117

68,651,850

561,819
60,972
28,946
52,181

5,486,811
19,068,820
15,620,451
313,676
279,818
28,524,541

5,457,281
19,068,820
15,136,611
257,066
250,872
28,481,200

112,961,573

2,994,114

105,229,480

N on­
in s u re d

406,515,162

70,260,664

69,499,675

760,989

5,659,939
19,068,820
16,172,706
484,781
279,818
28,594,600

5,602,868
19,068,820
15,610,887
423,809
250,872
28,542,419

57,071

Securities—to ta l.................................................................. 115,955,687

Cash, balances with other banks, and cash collection
items—to ta l...................................................................
C u rre n c y an d c o in ........................................................................
D e m a n d b a la n ce s w ith b a n k s in U. S ............................
O th e r b a la n ce s w ith b a n k s in U. S ........................................
B a la n ce s w ith b a n k s in fo re ig n c o u n tr ie s .........................
Cash ite m s in p ro ce ss o f c o lle c tio n ......................................

310,233

61,010,665

53,049,468

7,961,197

571,267

71,000

966,547

847,825

118,722

28,304

1,226

173,128

145,587

27,541

451,693
21,578
28,940
40,752

32,147
35,032
6
2,589

552,255
171,105

474,276
166,743

77,979
4,362

70,059

61,219

8,840

104,285,823

781,928

161,729

10,726,207

8,675,750

2,050,457

61,078,899
41,365,915

59,227,658
41,068,361

1,851,241
297,554

56,325,847
41,110,560

55,903,996
40,831,664

356,141
225,807

65,710
53,089

4,753,052
255,355

3,323,662
236,697

1,429,390
18,658

7,148,134
6,362,739

6,968,260
5,697,294

179,874
665,445

6,091,003
1,702,070

5,959,194
1,590,969

121,109
78,871

10,700
32,230

1,057,131
4,660,669

1,009,066
4,106,325

48,065
554,344

Loans and discounts, net—total s ....................................

268,517,737

261,048,875

7,468,862

220,219,133

218,455,698

1,719,304

44,131

48,298,604

42,593,177

5,705,427

V a lu a tio n r e s e rv e s ...............................................................

4,498,619

4,477,416

21,203

4,346,582

4,336,933

9,282

367

152,037

140,483

11,554

273,016,356

265,526,291

7,490,065

224,565,715

222,792,631

1,728,586

44,498

48,450,641

42,733,660

5,716,981

101,716,798

95,907,993

5,808,805

54,380,292

54,099,590

267,719

12,983

47,336,506

41,808,403

5,528,103

22,043,988
14,069,902
41,004,740
21,407,241

21,004,673
13,030,457
38,150,758
20,561,964

1,039,315
1,039,445
2,853,982
845,277

7,544,412
2,599,070
24,732,998
16,366,251

7,441,201
2,556,527
24,659,845
16,329,595

2,606
112
6,915
2,516

14,499,576
11,470,832
16,271,742
5,040,990

13,563,472
10,473,930
13,490,913
4,232,369

936,104
996,902
2,780,829
808,621

L oa ns to c o m m e rc ia l a n d fo re ig n b a n k s ...........................
L oans to o th e r fin a n c ia l in s titu t io n s ....................................
F e d era l fu n d s sold (lo a n e d )
Loa ns to b ro k e rs an d d e a le rs in s e c u r itie s .......................
O th e r lo a n s fo r c a rry in g s e c u r itie s .......................................
Loa ns to fa rm e r s ( e x c lu d in g real e s ta te ) ..........................
C o m m e rc ia l a n d in d u s tria l lo a n s ...........................................
O th e r lo a n s to in d iv id u a ls .........................................................
All o th e r lo a n s ( in c lu d in g o v e r d r a f ts ) ..................................

2,224,323
13,351,554
2,544,121
5,863,059
3,212,125
8,571,275
81,285,865
48,978,991
5,268,245

2,166,325
13,197,358
2,460,941
5,685,357
3,153,881
8,551,208
80,600,081
48,609,815
5,193,332

57,998
154,196
83,180
177,702
58,244
20,067
685,784
369,176
74,913

2,190,955
13,340,438
2,544,121
5,820,814
3,206,834
8,569,466
81,083,594
48,192,700
5,236,501

2,132,957
13,186,453
2,460,941
5,643,112
3,149,552
8,549,399
80,408,482
47,992,068
5,170,077

100,605
42,431
66,238
34,140
57,631
153,255
83,180
168,052
51,328
19,910
666,240
198,086
63,185

367
730

33,368
11,116

33.368
10,905

211

9,650
5,954
157
8,872
2,546
3,239

42,245
5,291
1,809
202,271
786,291
31,744

42,245
4,329
1,809
191,599
617,747
23,255

10,672
168,544
8,489

Miscellaneous assets—to ta l..............................................

12,791,739

12,485,681

306,058

11,772,432

11,552,965

186,094

33,373

1,019,307

932,716

86,591

B a n k p re m is e s , f u r n it u r e a n d fix tu re s , a n d re a l e s ta te .
— n e t o f m o rtg a g e s a n d o th e r lie n s ..................................
A ll o th e r m is c e lla n e o u s a s s e ts ...............................................

6,138,127
6,653,612

6,035,180
6,450,501

102,947
203,111

5,662,489
6,109,943

5,619,987
5,932,978

23,132
162,962

19,370
14,003

475,638
543,669

415,193
517,523

60,445
26,146

Loans and discounts, gross—total
Real e s ta te lo a n s — t o t a l.............................................................

Secured by farm land ............................................................
Secured by residential properties:
Insured by F H A ...............................................................
Guaranteed by V A .............................................................
Not insured or guaranteed by FHA or V A ...................................
Secured by other properties .....................................................




3,190,927

3,160,141

30,786

3,137,561

3,112,422

24,305

834

53,366

47,719

5,647

962

CORPORATION

U. S. G ov’t, o b lig a tio n s ( in c lu d in g g u a ra n te e d )..............
O b lig a tio n s o f S ta te s a n d s u b d iv is io n s ..............................
^ S e c u ritie s o f F ed era l a g e n c ie s a n d c o rp o ra tio n s ( n o t
g u a ra n te e d by U. S .) ........................................ ..................
O th e r s e c u ritie s 3.............................................................

INSURANCE

11,530,023

In s u re d

DEPOSIT

455,995,804

Total assets............................................................................. 467,525,827

N on­
in s u re d

T ota l

FEDERAL

In s u re d

T otal

Total liabilities and capital accounts................................

467,525,827

455,995,804

11,530,023

406,515,162

402,946,336

3,258,593

310,233

61,010,665

53,049,468

7,961,197

Business and personal deposits—total.........................

350,515,829

341,778,234

8,737,595

295,209,262

293,565,757

1,521,473

122,032

55,306,567

48,212,417

7,094,090

In d iv id u a ls , p a rtn e rs h ip s , a n d c o rp o ra tio n s —d e m a n d

145,610,480

144,689,782

920,698

145,224,888

144,323,672

819,488

19,482

Deposits of savings and loan associations .......................................
Other deposits of individuals, partnerships, and corporations..........

In d iv id u a ls , p a rtn e rs h ip s , a n d c o r p o ra tio n s —t im e . . .

2,300,330
143,310,150

2,298,371
142,391,411

1,959
918,739

2,300,330
142,924,558

2,298,371
142,025,301

1,959
817,529

81,728

385,592

366,110

81,728

385,592

366,110

19,482

40,293

54,909,462

47,834,854

7,074,608

8,475

Savings deposits ..............................................................................
Deposits accumulated for payment of personal loans ......................
Deposits of savings and loan associations .......................................
Other deposits of individuals, partnerships, and corporations .........

145,249,100
1,226,608
620,751
50,717,067

197,813,526

190,095,943

7,717,583

142,904,064

142,261,089

602,682

15,089

31,184

22,709

C e rtifie d a n d o ffic e r s ' c h e c k s , le tte rs o f c re d it,
tra v e le r s ’ c h e c k s , e t c ...........................................................

7,091,823

6,992,509

99,314

7,080,310

6,980,996

99,303

11

11,513

11,513

Government deposits—total............................................

34,014,407

33,810,211

204,196

33,970,303

33,768,382

201,767

154

44,104

41,829

2,275

5,022,377
262,012
15,174,000
13,556,018

4,996,312
257,896
15,062,369
13,493,634

26,065
4,116
111,631
62,384

5,015,638
261,653
15,170,733
13,522,279

4,990,164
257,599
15,059,104
13,461,515

25,320
4,054
111,629
60,764

154

6,739
359
3,267
33,739

6,148
297
3,265
32,119

591
62
2
1,620

18,569,237

18,356,651

212,586

18,567,907

18,355,321

212,118

468

1,330

1,330

16,985,886
479,125
899,317
204,909

16,947,354
478,100
782,525
148,672

38,532
1,025
116,792
56,237

16,985,760
477,921
899,317
204,909

16,947,228
476,896
782,525
148,672

38,064
1,025
116,792
56,237

468

126
1,204

126
1,204

S ta te s G o v e rn m e n t— d e m a n d ...............................
S ta te s G o v e rn m e n t— t im e ......................................
a n d s u b d iv is io n s — d e m a n d ....................................
a n d s u b d iv is io n s — t im e .............................................

Domestic interbank deposits—total..............................
S.— d e m a n d .......................
S.— t im e ................................
U. S.— d e m a n d ................
U. S.— t im e ........................

90,371,090
1,226,340
620,751
50,685,883

9 0,076,746
1,223,553
620,601
5 0,340,189

269,140
2,787
150
330,605

25,204

54,878,010
268

47,812,107
38

7,065,903
230

AND

C o m m e rc ia l b a n k s in th e U.
C o m m e rc ia l b a n k s in th e U.
M u tu a l sa v in g s b a n k s in th e
M u tu a l s a v in g s b a n k s in th e

7,360,247
3,017
150
354,169

229,530

7,380,229

7,150,699

229,053

477

869,268
4,212,084
1,784,407
284,940

25,820
54,255
119,855
29,600

895,088
4,266,339
1,904,262
314,540

869,268
4,212,084
1,784,407
284,940

25,503
54,255
119,769
29,526

317

Total deposits .T..........................................................

410,479,702

401,095,795

9,383,907

355,127,701

352,840,159

2,164,411

123,131

55,352,001

48,255,636

7,096,365

Miscellaneous liabilities—total.......................................

19,991,527

19,066,744

924,783

19,204,781

18,413,009

766,246

25,526

F ed e ra l fu n d s p u rc h a s e d ( b o r r o w e d ) ..............................
O th e r lia b ilitie s fo r b o rro w e d m o n e y ................................
A ll o th e r m is c e lla n e o u s lia b ilitie s .......................................

786,746

653,735

133,011

2,825,088
2,149,384
15,017,055

2,824,088
1,973,389
14,269,267

1,000
175,995
747,788

2,825,088
2,080,128
14,299,565

2,824,088
1,904,513
13,684,408

1,000
173,186
592,060

2,429
23,097

69,256
717,490

68,876
584,859

380
132,631

193,583,233
216,896,469

192,124,526
208,971,269

1,458,707
7,925,200

193,175,996
161,951,705

191,737 ,364
161,102,795

1,355,868
808,543

86
74

82,764
40,867

407,237
54,944,764

387,162
47,868,474

20,075
7,076,290

Total liabilities (excluding capital accounts).........

430,471,229

420,162,539

10,308,690

374,332,482

371,253,168

2,930,657

148,657

56,138,747

48,909,371

7,229,376

Capital accounts—total....................................................

37,054,598

35,833,265

1,221,333

32,182,680

P re fe rre d c a p ita l........................................................................
C o m m o n s t o c k ............................................................................
S u rp lu s ................................................. .........................................
U n d iv id e d p ro fits a n d r e s e rv e s ..........................................

31,693,168

327,936

161,576

4,871,918

4,140,097

731,821

1,845,950
8,994,411
17,490,922
8,723,315

1,794,597
8,856,837
16,922,389
8,259,442

51,353
137,574
568,533
463,873

1,842,838
8,994,411
14,177,817
7,167,614

1,791,485
8,856,837
13,998,697
7,046,149

51,053
85,034
106,496
85,353

300
52,540
72,624
36,112

3,112

3,112

3,313,105
1,555,701

2,923,692
1,213,293

389,413
342,408

N u m b e r o f b a n k s 4.............................................................................

14,291

13,873

418

13,785

13,541

196

48

506

332

BANKS

7,150,699

895,088
4,266,339
1,904,262
314,540

O
F

7,380,229

F ore ig n g o v e rn m e n ts , c e n tra l b a n k s , e tc .— d e m a n d ..
F oreign g o v e rn m e n ts , c e n tra l b a n k s , e tc .—t im e .........
B a n k s in fo re ig n c o u n trie s — d e m a n d ...............................
B a n k s in fo re ig n c o u n tr ie s — t im e .......................................

LIABILITIES

Foreign government and bank deposits—total..............

Demand .......................................................................................
Tim e ............................................................................................

ASSETS

U n ite d
U n ite d
S ta te s
S ta te s

137,888,853
1,223,591
620,601
50,362,898

174

Back figures, 1934-1965:

See the preceding table and the Annual Report for 1965, pp. 132-133, and earlier reports.




145

1 Includes asset and lia b ility figures for 14 branches of foreign banks (tabulated as banks) licensed to do a deposit business in the State of New York. Capital is not allocated to these branches by the parent banks.
2 Amounts shown as deposits are special accounts and uninvested trust funds, with the latter classified as demand deposits of individuals, partnerships, and corporations.
3 Excludes corporate stocks, other than Federal Reserve bank stock, of national banks; reported with “ All other miscellaneous assets.”
4 Includes 3 noninsured banks fo r which asset and lia b ility data are not available.

146

Table 106. ASSETS AND LIABILITIES OF INSURED COMMERCIAL AND INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES
(STATES AND OTHER AREAS), DECEMBER CALL DATES, 1962 THROUGH 1966
(A m ounts in th o u s a n d s of d o lla rs )
In s u re d m u tu a l sa vin g s b a n ks

In s u re d c o m m e rc ia l b a n ks
A sse ts

Dec. 31 ,
1966

Dec. 2 8 ,
1 96 2

Dec. 2 0 ,
196 3

Dec. 3 1 ,
1964

Dec. 3 1 ,
1965

Dec. 3 1 ,
1966

295,982,703

311,790,848

345,130,205

375,394,111

402,946,336

39,951,409

43,018,983

47,044,184

50,499,716

53,049,468

53,798,705

50,445,462

60,032,916

60,436,719

68,651,850

783,711

721,513

893,139

904,000

847,825

4,259,137

4,053,057

4 ,5 5 1,f “ “

4,865,803

5,457,281

123,167

104,083

138,843

142,598

145,587

17,679,794

17,149,613 '

17,580,743

17,992,395

19,068,820

12,563,869

11,644,517

14,090,586

14,354,186

15,136,611

458,012

441,946

476,644

493,600

474,276

256,823
237,431
18,801,651

367,817
298,992
16,931,466

558,335
300,841
22,950,522

484,817
255,865
22,483,653

257,066
250,872
28,481.200

160,125

141,043

224,274

212,193

166,743

42'407

34.441

53,378

55,609

61,219

Obligations of the U. S. Government, direct
and guaranteed—total..............................

65,966,306

62,811,737

62,588,052

59,209,832

55,903,996

4,639,213

4,324,018

4,110,452

3,759,961

3,323,662

D ire ct:
T re a s u ry b ills .......................................................
T re a s u ry c e rtific a te s o f in d e b te d n e s s .. . .
T re a s u ry n o te s m a tu rin g in 1 y e a r o r less
T re a s u ry n o te s m a tu rin g a fte r 1 y e a r. . . .
U n ite d S ta te s n o n -m a rk e ta b le b o n d s . . . .
O th e r b o n d s m a tu rin g in 1 y e a r o r le s s . .
O th e r b o n d s m a tu rin g in 1 to 5 y e a r s . . . .
O th e r b o n d s m a tu rin g in 5 to 10 y e a r s . ..
O th e r b o n d s m a tu rin g a fte r 10 y e a rs . . . .
G u a ra n te e d o b lig a tio n s .......................................

11,570,253
3,917,424
5,199,158
18,518,818
303,366
2,253,167
11,332,096
11,967,665
768,599
135,760

10,999,
1,651,
5,921,
16,402,
277,
1,141,
12,931,
12,244,
1,137,
104,

13,301,211

309,700

0)

208,768
19,074
217,234
354,585
115,721
14,190
537,123
1,423,462
1,296,853
137,008

232,494

C)

220,763
78,906
122,927
631,844
146,394
31,981
316,445
1,631,069
1,354,432
104,452

128,164
280,349
92,527
11,515
850,449
1,107,233
1,241,155
166,566

146,292
89,827
67,037
31,850
851,953
975,170
1,177,097
111,035

289,812
16,900
98,058
219,584
61,857
34,512
792,853
680,603
998,066
131,417

Total assets..........................................................
Cash, balances with other banks, and cash
collection items—total
C u rre n c y a n d c o in .................................................
Reserve w ith F ed era l R e serve B a n k s (m e m ­
be r b a n k s ).............................................................
D e m a n d b a la n c e s w ith b a n k s in th e U n ite d
S ta te s (e x c e p t p riv a te b a n k s a n d A m e r i­
can b ra n c h e s o f fo re ig n b a n k s ) ..............
O th e r b a la n ce s w ith b a n k s in th e U n ite d
S ta te s ......................................................................
B a la n ce s w ith b a n k s in fo re ig n c o u n tr ie s . ..
Cash ite m s in p ro ce ss o f c o lle c tio n ...............

i

7,097,197
11,872,107
247,362
1,904,040
14,766,228
12,481,688
778,067
140,152

28,946,174

34,660,292

38,371,648

44,440,876

48,381,827

5,180,122

5,040,575

5,014,656

5,010,410

5,352,088

O b lig a tio n s o f S ta te s a n d s u b d iv is io n s .........
S e c u ritie s o f F e d e ra l a g e n c ie s a n d c o rp o ra ­
tio n s (n o t g u a ra n te e d by U. S .)...................
O th e r b o n d s, notes, a n d d e b e n tu re s ............
Fed era l R eserve B a n k s to c k .............................
O th e r c o rp o ra te s to c k s ........................................

24,582,904

29,611,314

33,343,807

38,480,349

40,831,664

493,149

410,862

367,846

300,273

236,697

2,870,165
804,088
465,705
223,312

3,503,243
784,083
491,175
270,477

3,446,144
762,790

4,513,114

5,959,194

616,277
3,260,251

712,425
3,003,773

749,219
2,904,732

842,356
2,731,805

1,009,066
2,932,706

447,413

21 ,590,969
810,445

913,515

992,859

1,135,976

1,173,619

Total securities.......................................

94,912,480

97,472,029

100,959,700

9,819,335

9,364,593

9,125,108

8,770,371

8,675,750

Other securities—total.....................................




818,907

103,650,708

104,285,823

CORPORATION

Dec. 31,
196 5

INSURANCE

Dec. 31,
196 4

DEPOSIT

Dec. 20,
1963

FEDERAL

Dec. 28,
196 2

Loans and discounts, net— to ta l................................ 140,023,316

155,933,367

2,694,275

2,994,811

3,552,676

4,011,273

4,336,933

215,413

218,740

Loans and discounts, gross— to ta l........................... 142,717,591

209,774

209,331

140,483

158,928,178

178,648,870

205,125,416

222,792,631

28,993,418

32,518,355

36,442,826

40,173,674

42,733,660

34,309,294

39,088,205

43,733,086

49,393,933

54,099,590

28,441,482

31,892,036

35,823,288

39,435,679

41,808,403

6 ,4 % , 946
2,635,240
14,237,357
8,938,880

7,047,238
2,817,152
16,380,889
10,539,675

7,243,497
2,684,468
18,810,798
12,377,719

7,592,405
2,637,439
21,929,584
14,346,493

7,441,201
2,556,527
24,659,845
16,329,595

8 ,681,793
8,836,802
8,233,845
2,642,970

9,969,510
9,500,673
9,386,663
2,988,342

11,527,827
10,129,274
10,739,893
3,377,665

12,911,024
10,427,383
12,245,612
3,804,841

13,563,472
10,473,930
13,490,913
4,232,369

2,552,321
8,468,121
(3
)
5,120,629

3,594,633
9,441,479
(3
)
5,325,642

3,420,989
10,849,646
<z)
5,355,550

2,095,012
13,186,038
2,064,215
5,087,694

2,132,957
13,186,453
2,460,941
5,643,112

8,049
5,234

15,617
7,016

16,228
9,322

12,505
14,342

33,368
10,905

57,296

24,278

25,759

21,585

42,245

2,103,614

2,476,760

2,/94,217

3,175,076

3,149,552

11,320

11,579

4,807

4,812

4,329

1,111,661

816,838

513,580

533,948

5,961,308

6,644,575

6,982,643

7,669,065

8,549,399

2,250

2,499

2,152

1,913

1,809

48,668,367

52,984,200

60,040,383

71,235,183

80,408,482

192,554

160,682

156,977

144,698

191,599

30,524,024

34,531,746

39,814,778

45,497,461

47,992,068

266,162

388,211

391,145

515,673

617,747

3,898,252

4,024,100

5,143,998

5,187,791

5,170,077

9,071

16,437

13,148

22,467

23,255

T o tal loans and s e c u ritie s ............................ 234,935,796

253,405,396

276,055,894

304,764,851

322,741,521

38,597,340

41,664,208

45,358,160

48,734,714

51,268,927

4,753,588

55 ,144,222

65 ,619,987

V a lu a tio n re s e rv e s

........................................................

Real e s ta te lo a n s — t o t a l............................................

Secured by farm land ........................................................
Secured by residential properties:
Insured by F H A ...........................................................
Guaranteed by V A ........................................................
Not insured or guaranteed by FHA or V A ..................
Secured by other properties ...............................................

B ank p rem ises, fu rn itu re and fixtu re s, and
o th er re al es ta te — to ta l..........................................

14,661,720
3,748,783
3,012,861
6,441,204
11,950,210

12,437,272
3,200,612
2,909,590
5,718,920
10,265,352

2,888,012

17,139,214
4,176,950
3,126,804
7,388,640
13,665,853

3,884,209

4,394,800

B a n k p re m is e s ..............................................................
F u rn itu re a n d f ix t u r e s ...............................................
Real e s ta te o w n e d o th e r th a n b a n k p re m is e s .
In v e s tm e n ts an d o th e r a sse ts in d ire c tly re p ­
re s e n tin g b a n k p re m is e s o r o th e r real
e s ta te ............................................................................

2,609,5&1
793,893
106,984

3,082,103 \
863,387 /
89,334

373,771

3,363,993

3,545,190

4,287,807

5,048,319

C u s to m e rs ’ lia b ility on a c c e p ta n c e s o u t­
s t a n d in g .......................................................................
O th e r a s s e ts ...................................................................

1,618,937
1,745,056

1,591,458
1,953,732

1,697,120
2,590,687

46,072

32,299,615

46,848

36,233,052

48,629

39,964,343

46,819

42,593,177

47,71.9

(4
)

18,290,164
4,692,533
3,216,162
8,091,439
13,701,770

5J36
1,203
63,068
58,229
137,926

13,978
923
66,450
88,484
218,376

24,370
1,016
75,397
126,027
164,335

35,555
2,039
88,646
199,220
190,213

42,879
3,769
105,998
244,976
220,125

359,976

M iscellaneou s assets— to ta l........................................

3,112,422

28,778,005

342,898

381,225

415,193

277,012
39,117
26,709

308,289
45,641
27,295

329,951
57,444
27,798

5,932,978

282,071

320,365

449,987

479,777

517,523

1,862,571
3,185,748

2,178,017
3,754,961

282,071

320,365

449,987

479,777

517,523

1.9%

1.8%

0)

O

BANKS

312,897
260,904
29,168
22,825

O
F

(
\

288,287
243,406
25,206
19,675

LIABILITIES

A ll o th e r lo a n s ( in c lu d in g o v e r d r a f ts ) .................

10,529,184
2,857,682
2,762,423
5,034,282
9,340,453

2,616,604

218,455,698

AND

Passenger automobile instalment loans .............................
Other retail consumer instalment loans ............................
Residential repair and modernization instalment loans..
Other instalment loans for personal expenditures ............
Single-payment loans for personal expenditures ...............

2,303,251

201,114,143

ASSETS

Loans to d o m e s tic c o m m e rc ia l a n d fo re ig n
b a n k s ............................................................................
Loans to o th e r fin a n c ia l in s titu t io n s ...................
F ederal fu n d s sold ( lo a n e d ) ....................................
Loans to b ro k e rs an d d e a le rs in s e c u r itie s ___
O th e r lo a n s f o r p u rc h a s in g o r c a r ry in g s e c u ri­
t ie s ......................... „ ......................................................
Loans to fa rm e r s d ire c tly g u a ra n te e d by th e
C o m m o d ity C re d it C o rp o ra tio n ..........................
O th e r lo a n s to fa rm e r s ( e x c lu d in g lo ans on
real e s ta te ) .................................................................
C o m m e rc ia l a n d in d u s tria l lo a n s (in c lu d in g
ope n m a rk e t p a p e r)................................................
O th e rlo a n s to in d iv id u a ls fo r p e rs o n a l e x p e n d ­
itu re s — t o t a l...........................................................

2,002,871

175,096,194

0)

PERCENTAGES
To to tal assets:

To to tal assets o th er th an cash a n d U. S. Gov­
e rn m e n t oblig atio n s ;
T o ta l c a p ita l a c c o u n ts ................................................




18.2%

16.2%

17.4%

16.1%

17.0%

22.3
9.8
47.3
2.4
8.0

20.1
11.1
50.0
2.6
8.1

18.2
11.1
50.7
2.6
8.0

15.8
11.8
53.6
2.7
8.0

13.9
12.0
54.2
2.9
7.9

11.6
13.0
72.0
1.4
8.4

10.0
11.7
75.1
1.5
8.3

8.7
10.7
77.0
1.7
7.9

7.5
9.9
79.1
1.7
7.8

6.3
10.1
80.3
1.7
7.8

13.5

12.8

12.4

11.7

11.4

9.7

9.4

8.9

8.6

8.5

2.0%

1.7%

1.6%

147

C ash a n d b a la n c e s w ith o th e r b a n k s .................
U.S. G o v e rn m e n t o b lig a tio n s , d ire c t a n d g u a r­
a n te e d ..........................................................................
O th e r s e c u r itie s ............................................................
Loa ns a n d d is c o u n ts ..................................................
O th e r a s s e ts ...................................................................
T o ta l c a p ita l a c c o u n ts ................................................

T a b l e 1 0 6 . ASSETS AND LIABILITIES OF INSURED COMMERCIAL AND INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES

(STATES AND OTHER AREAS), DECEMBER CALL DATES, 1962 THROUGH 1966— CONTINUED
148

(A m o u n ts in th o u s a n d s o f d o lla rs )
In s u re d c o m m e rc ia l b a n k s
Dec. 20 ,
196 3

Total liabilities and capital accounts.................

295,982,703

311,790,848

Business and personal deposits—total..........

216,424,179

228,042,312

I n d iv id u a ls , p a rtn e rs h ip s , a n d c o r p o ra tio n s
— d e m a n d ............................................................

123,296,625

123,561,302

134,300,734

(’)

(')

100,033,046

112,804,696

D eposits of savings and loan associations ..................... )
Other deposits of individuals, partnerships, and
corporations ............................................................... r

In d iv id u a ls , p a rtn e rs h ip s , a n d c o rp o ra tio n s
— t im e ....................................................................

(,)
88,678,022

71,043,588
783,826

Savings deposits .............................................................
Deposits accumulated for payment of personal loans...

76,413,701
836,450

Dec. 31 ,
1 96 4

In s u re d m u tu a l sa v in g s b a n ks

Dec. 3 1 ,
1965

Dec. 3 1 ,
1966

345,130,205

375,394,111

252,983,403

275,205,357
139,077,920

l< 2,294,862
(

82,966,971
956,410

Dec. 2 0 ,
1963

402,946,336

39,951,409

43,018,983

47,044,184

50,499,716

53,049,468

293,565,757

36,073,907

38,627,061

42,714,295

45,848,773

48,212,477

144,323,672

257,875

281,375

312,703

345,204

366,110

2,298,371

136,783,058 142,025,301

130,195,436

(

Dec. 2 8 ,
196 2

92,554,897
1,078,207
922,485

Dec. 3 1 ,
1964

Dec. 3 1 ,
1965

Dec. 3 1 ,
1966

281,375

312,703

345,204

366,110

35,808,838

38,337,379

42,389,690

45,491,617

47,834,854

50,340,189

10,344

11,899

14,519

14,385

22,709

90,076,746
1,223,553
620,601

35,797,789
705

38,324,849
631

42,374,371
800

45,477,204
28

47,812,107
38

22,782,895

28,881,315

4,449,532

4,447,964

5,877,973

5,932,001

6,980,996

7,194

8,307

11,902

11,952

11,513

Government deposits—total.............................

25,581,722

27,142,510

30,068,312

32,216,843

33,768,382

29,312

28,767

34,844

37,131

41,829

S ta te s G o v e rn m e n t— d e m a n d .............
S ta te s G o v e rn m e n t— t im e .....................
a n d s u b d iv is io n s — d e m a n d ...................
a n d s u b d iv is io n s — t im e ..........

6,824,658
266,143
12,064,372
6,426,549

6,729,214
268,203
12,261,389
7,883,704

6,500,876
270,832
13,497,662
9,798,942

5,523,816
281,330
14,241,724
12,169,973

4,990,164
257,599
15,059,104
13,461,515

9,096
56
1,711
18,449

5,025
97
2,046
21,599

6,574
152
1,584
26,534

6,795
407
2,079
27,850

6,148
297
3,265
32,119

Domestic interbank and postal savings de­
posits—total.................................................

14,888,976

14,268,764

16,754,488

17,311,718

18,355,321

945

1,236

1,960

1,387

1,330

13,907,380
240,989
684,285
38,153
18,169

13,323,080
268,710
610,294
49,252
17,428

15,492,798
382,943
740,382
118,835
19,530

15,779,062
510,159
860,378
162,119

16,947,228
476,896
782,525
148,672

26
919

32
1,204

88
1,872

122
1,265

126
1,204

4,548,654

42,751,099

45,887,291

48,255,636

Other deposits of individuals, partnerships, and cor­
porations ....................................................................

U n ite d
U n ite d
S ta te s
S ta te s

C o m m e rc ia l b a n ks in th e U. S.— d e m a n d . . .
C o m m e rc ia l b a n k s in th e U. S.— tim e
M u tu a l sa v in g s b a n ks in th e U. S.— d e m a n d .
M u tu a l sa v in g s b a n k s in th e U. S.— t i m e . . . .
Po sta l s a v in g s .......................................................

Foreign government and bank deposits—
total...............................................................

>
)

{ 35,639,847

(0

0)

5,193,043

6,424,074

6,778,763

7,150,699

F o re ig n g o v e rn m e n ts , c e n tra l b a n k s , e tc .—
d e m a n d ....................................................................
Fore ig n g o v e rn m e n ts , c e n tra l b a n k s , e tc .—
t im e ............................................................................
B a n ks in fo re ig n c o u n trie s — d e m a n d ..............
B a n k s in fo re ig n c o u n trie s — t i m e ....................

724,335

841,590

826,137

892,867

869,268

22

2,431,688
1,265,391
127,240

3,045,415
1,177,311
128,727

3,893,693
1,454,685
249,559

4,086,126
1,529,097
270,673

4,212,084
1,784,407
284,940

33

Total deposits..............................................

261,443,531

274,646,629

306,230,277

331,512,681

352,840,159

Demand ..................................................................... 163,216,578
Tim e .......................................................................... 98,226,953




162,952,144
111,694,485

178,691 M 7
127,539,030

183,836,865
147,675,816

191,737,364
161,102,795

55

36,104,164

275,902
35,828,262

38,657,119

296,807
38,360,312

332,851
42,418,248

366,152
45,5^1,139

387,162 '
47,868,474

CORPORATION

16,850,608

C e rtifie d a n d o ffic e r s ’ c h e c k s , le tte rs o f
c re d it, tra v e le rs ’ c h e c k s , e t c .......................

INSURANCE

257,875

142,261,089

DEPOSIT

Dec. 28,
1962

FEDERAL

L ia b ilitie s a n d c a p ita l

M iscellaneou s lia b ilitie s —to ta l..............................

10,786,803

F e d era l fu n d s p u rc h a s e d ( b o r r o w e d ) ............
J 3,583,534
O th e r lia b ilitie s fo r b o rro w e d m o n e y ..............
A c c e p ta n c e s o u t s ta n d in g .....................................
1,655,648
O th e r lia b ilitie s ..........................................................
5,547,621

11,461,821

3,576,530

2,591,133

1,620,293
6,625,000

13,976,496

18,413,009

1,737,101
7,133,587

2,438,413
1,898,290
1,897,569
7,742,224

2,824,088
1,904,513
2,234,455
11,449,953

/
\

503,798

790,247

562,242

655,013

7,278

37,647

20,402

90,800

68,876

496,520

752,600

541,840

564,213

584,859

653,735

371,253,168

36,607,962

39,447,366

43,313,341

46,542,304

48,909,371

27,438,107

29,904,934

31,693,168

3,343,447

3,571,617

3,730,843

3,957,412

4,140,097

C a p ita l s to c k , n o te s, a n d d e b e n tu r e s ............
S u r p lu s .........................................................................
U n d iv id e d p r o f it s .....................................................
R e s e rv e s ......................................................................

6,937,352
11,458,444
4,789,690
566,883

7,450,533
12,163,471
5,113,403
594,989

8,738,836
12,893,189
5,113,007
693,075

10,200,361
13,464,797
5,437,575
802,201

10,648,322
13,998,697
6,166,477
879,672

150
2,363,637
698,915
280,745

533
2,473,815
828,115
269,154

674
2,658,871
759,920
311,378

2,759
2,798,625
822,112
333,916

3,112
2,923,692
821,662
391,631

C ap ita l stock, notes, and d e b e n tu re s :
Par o r face va lu e— to ta l..........................................

6,937,652

7,450,833

8,738,836

10,200,361

10,648,322

150

533

674

2,759

3,112

C o m m o n s t o c k ......................................................
C a p ita l n o te s a n d d e b e n tu re s ........................
P re fe rre d s t o c k .....................................................

6,882,362
20,496
34,794

7,282,980
130,014
37,839

7,886,432
810,657
41,747

8,507,770
1,652,701
39,890

8,856,837
1,729,902
61,583

150

533

674

2,759

3,112

N u m b e r o f b a n k s .............................................................

13,126

13,291

13,493

13,547

13,541

331

330

327

329

332

M EM O R A ND A

149




BANKS

1 Not available.
2 Excludes as of December 31,1965,. and December 31,1966, corporate stocks, other than Federal Reserve bank stock, of national banks; reported with “ Other assets.”
3 Prior to December 31,1965, "Federal f i n di sold (loaned)” not reported separately; most were included with loans to banks.
4 Included with "Securities of Federal agencies and corporations (not guaranteed by U.S.).”
5 Net of mortgages and other liens; previously included with "Other liabilities.”
Back figures, 1934-1961: See the Annual Report for 1962, pp. 130-133, and earlier reports.

O
F

345,489,177

25,322,396

LIABILITIES

317,692,098

23,752,369

AND

286,468,452

C apital accounts— to ta l...............................................

ASSETS

Total lia b ilitie s (e xclu d in g ca p ital ac­
c o u n ts ).................................................................... 272,230,334

11,821,823

150

Table 107. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES
(STATES AND OTHER AREAS), DECEMBER 31, 1966
B A N K S GROUPED B Y C LA S S O F B A N K
(A m ounts in th o u s a n d s o f d o lla rs )
M e m b e rs F. R. S ystem
A s s e t o r lia b ility ite m

T o ta l

Not
m e m b e rs
F. R. S ystem

19,048,608
11,560,208
10,019,825
1,224,982

7,882,476
13,988,792
7,033,786
2,390,130

218,455,698
54,099,590
15,319,410
2,460,941
8,792,664
8,549,399
80,408,482
34,290,298
13,701,770
5,170,077
4,336,933

129,648,241
30,535,304
9,111,732
1,728,570
4,624,675
4,284,392
50,554,796
19,832,740
8,218,948
3,368,273
2,611,189

54,560,488
12,042,963
5,299,360
390,595
3,426,505
1,040,100
22,146,077
6,618,693
3,318,273
1,424,775
1,146,853

34,246,969
11,521,323
908,318
341,776
741,484
3,224,907
7,707,609
7,838,865
2,164,549
377,029
578,891

7,164,366

3,077,788

1,310,811

236,601,473

99,491,899

66,852,964

D e p o s its to ta l
.............................................................................................................................
In d iv id u a ls p a rtn e rs h ip s a n d c o rp o ra tio n s — d e m a n d
....................................................................................................
In d iv id u a ls , p a rtn e rs h ip s , a n d c o rp o ra tio n s — sa v in g s and t im e ........................................................................................
U S G o v e rn m e n t
...........................................................................................................
S ta te s a n d s u b d iv is io n s
.........................................................................................................................................
D o m e s tic in te rb a n k
...........................................................................................................
F oreign g o v e rn m e n t a n d b a n k
.....................................................................................................................................
O th e r d e p o s its
.....................................................................................................................................................

352,840,159
144,323,672
142,261,089
5,247,763
28,520,619
18,355,321
7,150,699
6,980,996

207,048,778
84,253,857
83,269,791
3,226,427
16,882,516
12,004,359
3,997,607
3,414,221

85,547,346
35,476,211
31,445,436
1,432,928
5,550,718
5,621,393
3,032,312
2,988,348

60,244,035
24,593,604
27,545,862
588,408
6,087,385
729,569
120,780
578,427

F ed e ra l fu n d s p u rc h a s e d ( b o r ro w e d ) .................................................................................................................................................
O th e r lia b ilitie s fo r b o rro w e d m o n e y
.....................................................................................................
O th e r lia b ilitie s
.........................................................................................................................................................
C a p ita l s to c k n o te s a n d d e b e n tu re s
.................................................................................................
O th e r c a p ita l a c c o u n ts
......................................................................................... .............................................

2,824,088
1,904,513
13,684,408
10,648,322
21,044,846

1,870,810
1,248,983
7,973,994
6,299,933
12,158,975

910,603
587,663
4,638,844
2,586,745
5,220,698

42,675
67,867
1,071,570
1,761,644
3,665,173

13,541

4,799

1,350

7,392

O th e r a s s e ts ...................................................

T o tal lia b ilitie s and c a p ital accounts . ..

N u m b e r of banks

..................................................................................................................................................................

1 Excludes corporate stocks, other than Federal Reserve bank stock, of national banks; reported with “ Other assets.”




CORPORATION

11,552,965

402,946,336

INSURANCE

66,852,964

41,720,766
30,354,996
23,778,053
3,935,051

DEPOSIT

.......................................................................................
...................................................................................................
.................................................................................................................
.........................................................................................
.......................................................................................................
.........................................................................
...............................................................................................................................
.....................................................................................................

99,491,899

68,651,850
55,903,996
40,831,664
7,550,163

Fed e ra l fu n d s sold (lo a n e d )
To p u rc h a s e o r c a rry s e c u ritie s
To fa rm e r s
C o m m e rc ia l a n d in d u s tria l
C o n s u m e r in s ta lm e n t
S in g le p a y m e n t to in d iv id u a ls
O th e r lo a n s
L e ss- V a lu a tio n re s e rv e s

S ta te

236,601,473

FEDERAL

N a tio n a l

402,946,336

T a b le 1 0 8 .

ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1966 IN THE UNITED STATES
(STATES AND OTHER AREAS), DECEMBER 31, 1966
BA N K S GROUPED A C C O R D IN G TO A M O U N T OF DEPO SITS
(A m o u n ts in th o u s a n d s o f d o lla rs )
B a n k s w ith d e p o s its o f—
All
banks1

A s s e t o r lia b ility ite m

Less
than

$1,000,000

$2,000,000

$5,000,000

$10,000,000

$25,000,000

$50,000,000

$100,000,000

$500,000,000

to

to

to

to

to

to

to

$1,000,000

$2,000,000

$5,000,000

$10,000,000

$25,000,000

$50,000,000

$100,000,000

$500,000,000

or
more

2,793,544

15,698,289

25,564,009

41,793,236

28,554,472

26,784,260

73,182,628

187,165,762

68,785
116,167
10,288
21,989

410,619
835,551
101,991
172,359

2,132,933
4,125.821
1,1031229
756,792

3,370,870
5.725,468
2,647,963
1,002,789

5,362,767
8,220,504
4,860,430
1,314,112

3,801,041
5,107,810
3,473,138
701,294

3,778,964
4,404,310
3,174,107
617,574

12,596,795
9,802,691
8,131,251
979,402

37,025,501
17,484,333
17,323,194
1,958,084

Loans a n d d is c o u n ts , n e t— t o t a l............................
Rea! e s t a te ..................................................................
To b a n k s a n d o th e r fin a n c ia l in s t it u t io n s .
Fed era l fu n d s so ld ( lo a n e d ) .................................
To p u rc h a s e o r c a rry s e c u r itie s .........................
To f a r m e r s ...................................................................
C o m m e rc ia l a n d in d u s t r ia l...................................
C o n s u m e r in s ta lm e n t .............................................
S ingle p a y m e n t to in d iv id u a ls .............................
O th e r lo a n s ..................................................................
Less: V a lu a tio n re s e rv e s .......................................

217,772,407
53,872,353
15,283,840
2,456,665
8,780,447
8,537,326
80,181,403
34,181,124
13,683,773
5,131,596
4,336,120

158,924
35,115
1,875

1,241,931
314,707
13,695
2,475
8,859
463,223
146,444
217,231
72,533
14,883
12,119

7,341,511
2,283,814
70,216
44,581
75,646
1,870,583
1,111,990
1,438,688
455,067
84,656
93,730

12,373,831
4,169,587
157,142
135,918
172,791
1,932,420
2,280,126
2,731,304
839,315
144,995
189,767

21,215,305
7,250,111
346,914
355,680
332,631
1,526,588
4,768,185
5,195,907
1,543,753
265,551
370,015

14,868,412
4,987,548
463,614
306,709
280,573
444,926
3,764,858
3,549,165
1,158,415
196,623
284,019

14,216,689
4,561,456
579,554
246,623
404.529
292,232
4,161,515
3,000,421
1,020,576
239,724
289,941

39,976,678
10,834,257
2,551,790
603,630
1,517,821
689,288
12,746,246
7,543,096
3,298,134
1,011,293
818,877

106,379,126
19,435,758
11,099,040
761,049
5,986,721
1,250,783
51,185,363
10,478,389
5,286,854
3,171,769
2,276,600

...

876
67,283
16,676
26,923
9,126
2,102
1,052
3,345

31,093

238,003

443,088

820,118

602,777

592,616

1,695,811

6,995,524

379,498

2,793,544

15,698,289

25,564,009

41,793,236

28,554,472

26,784,260

73,182,628

187,165,762

D e p o s its — t o t a l..............................................................

351,904,803

329,796

2,470,658

14,065,384

23,100,435

37,826,754

25,752,730

24,124,493

65,294,262

158,940,291

144,033,719

194,432

1,244,389

6,208,017

9,631,089

15,162,083

10,452,431

9,526,783

27,300,887

64,313,608

141,787,187
5,226,711
28,438,900
18,342,205
7,110,075
6,966,006

93,444
1,513
37,706
1,245

918,838
11,750
274,770
8,282

10,639,929
217,020
2,311,036
118,157
874
182,330

18,025,669
422,380
3,483,365
361,758
11,873
359,626

11,959,275
302,113
2,242,015
487,965
44,093
264,838

11,004,785
271,743
2,225,812
772,908
71,450
251,012

26,308,860
979,611
5,679,471
4,211,124
105,853
708,456

56,725,776
2,923,430
10,693,366
12,319,707
6,875,267
5,089,137

Demand deposits ....................................... 191,357,907
Time and savings deposits ............................. 160,546,896

In d iv id u a ls , p a rtn e rs h ip s , an d
c o rp o ra tio n s — d e m a n d
In d iv id u a ls , p a rtn e rs h ip s , an d
c o r p o r a tio n s — tim e a n d s a v in g s
U.S. G o v e r n m e n t
S ta te s a n d s u b d iv is io n s
D o m e s tic in te r b a n k
F oreign g o v e rn m e n t a n d b a n k
O th e r d e p o s its

.........................
.............
....................................
...........................
.................................
..................
.......................................
Fed era l fu n d s p u rc h a s e d ( b o r ro w e d ) ............
O th e r lia b ilitie s fo r b o rro w e d m o n e y .............
O th e r lia b lit ie s ..........................................
C a p ita l s to c k , n o te s, a n d d e b e n tu re s ...........
O th e r c a p ita l a c c o u n ts ...............................

1,470,610
1,000,048

7,496,123
6,569,261

18,459,188
19,367,566

12,826,162
12,926,568

12,060,612
12,063,881

36,277,772
29,016,490

90,855,912
68,084,379

1,456

12,629

6,110,611
97,151
1,491,359
61,059
665
96,522

2,823,688
1,904,371
13,657,567
10,613,734
21,011,535

100
1,634
13,980
33,988

25
2,262
13,994
81,619
224,986

4,050
17,061
121,201
422.829
1,067,764

8,855
20,934
275,985
631,071
1,526,729

17,725
27,997
671,093
989,152
2,260,515

23,920
20,372
619,384
699,655
1,438,411

47,755
11,100
623,254
664,746
1,312,912

331,055
138,901
1,829,028
1,857,402
3,731,980

2,390,303
1,665,644
9,501,994
5,253,280
9,414,250

13,440

433

1,624

4,154

3,265

2,447

751

351

320

95

1This group of banks is the same as the group shown in Table 114 under the heading “ Operating throughout the year.”
2 Excludes corporate stocks, other than Federal Reserve Bank stock, of national banks; reported with “ Other assets.”
Note: For income and expense data by size of bank, see Tables 115 and 116, pp. 164-167,
Back figures, 1941-1965: See the Annual Report for 1965, p. 145, and earlier reports.




11,685,112
11,415,323

151

N u m b e r o f b a n k s .............................................................

226,416
103,380

BANKS

11,422,375

401,915,698

O th e r a s s e ts

O
F

.............................................

Total liabilities and capital accounts..............

LIABILITIES

379,498

68,548,275
55,822,655
40,825,591
7,524,395

AND

401,915,698

Cash a n d d u e fro m b a n k s ........................................
O b lig a tio n s o f th e U.S. G o v e rn m e n t....................
O b lig a tio n s o f S ta te s a n d s u b d iv is io n s ...............
O th e r s e c u ritie s 2...........................................................

ASSETS

Total assets................................................

152

T a b l e 1 0 9 . AVERAGE ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES

(STATES AND OTHER AREAS), BY STATE, 1966 1
(A m ounts in th o u s a n d s o f d o lla rs )
L ia b ilitie s an d c a p ita l a c c o u n ts 1

A s s e ts 1

Total U n ited S ta te s ................................

Cash a n d
d u e fro m
banks

62,867,398

U.S. Gov­
e rn m e n t
o b lig a tio n s

O th e r
s e c u ritie s 2

Loans
and
d is c o u n ts

All
o th e r
a s s e ts

T o ta l

56,088,649

47,054,812

210,240,170

10,862,634

387,113,663

B o rro w in g s
an d o th e r
lia b ilitie s

T o ta l
c a p ita l
a c c o u n ts

D e m an d

340,336,714

185,336,407

155,000,307

15,926,263

30,850,686
30,767,177

55,988,573

46,977,713

209,646,560

10,836,807

386,220,412

339,561,516

184,999,542

154,561,974

O th er a r e a s .................................................

96,639

100,076

77,099

593,610

25,827

893,251

775,198

336,865

438,333

34,544

83,509

A la b a m a .................................................
A la s k a ......................................................
A riz o n a ...................................................
A rk a n s a s ................................................
C a lifo rn ia ................................................

635,364
46,943
302,425
440,013
5,763,905

741,475
62,528
247,110
360,560
4,483,473

529,869
45,706
266,105
341,833
4,644,000

1,772,266
196,585
1,515,219
1,119,130
24,822,344

66,756
13,381
95,560
39,368
1,554,384

3,745,730
365,143
2,426,419
2,300,904
41,268,106

3,374,217
336,889
2,170,886
2,092,143
36,353,680

2,065,341
174,059
1,041,780
1,313,416
15,337,069

1,308,876
162,830
1,129,106
778,727
21,016,611

63,113
6,464
64,401
22,252
1,941,911

308,400
21,790
191,132
186,509
2,972,515

C o lo ra d o .................................................
C o n n e c tic u t...........................................
D e la w a re ................................................
D is tric t o f C o lu m b ia ..........................
F lo rid a .....................................................

558,177
621,229
184,355
447,452
1,559,874

491,089
436,699
174,662
534,344
1,818,712

290,395
531,531
163,380
132,054
1,147,217

1,819,384
2,329,779
553,234
1,394,318
4,007,210

92,578
101,323
21,764
46,209
257,929

3,251,623
4,020,561
1,097,395
2,554,377
8,790,942

2,924,649
3,532,072
966,366
2,303,595
7,893,279

1,605,931
2,170,004
665,767
1,447,040
4,575,882

1,318,718
1,362,068
300,599
856,555
3,317,397

64,732
145,484
28,726
56,540
210,756

262,242
343,005
102,303
194,242
686,907

G e o rg ia ...................................................
H a w a ii.....................................................
I llin o is ......................................................
In d ia n a ...................................................

989,316
145,484
132,960
4,271,244
1,262,378

785,828
142,080
157,276
5,326,431
1,888,824

583,726
128,749
98,773
3,779,709
842,935

2,978,404
684,123
585,149
15,146,622
3,964,416

148,194
63,714
24,345
689,233
137,288

5,485,468
1,164,150
998,503
29,213,239
8,095,841

4,830,600
1,013,725
907,848
25,890,592
7,224,989

2,982,839
518,391
506,447
13,762,695
4,030,299

1,847,761
495,334
401,401
12,127,897
3,194,690

184,574
33,798
17,260
1,136,870
277,454

470,294
116,627
73,395
2,185,777
593,398

Io w a .........................................................
K a n s a s ....................................................
K e n tu c k y ................................................
L o u is ia n a ...............................................
M a in e .......................................................

763,112
594,516
714,848
973,398
121,780

1,069,636
830,328
804,033
989,961
138,695

617,618
536,281
402,398
604,803
134,008

2,498,531
1,832,613
1,857,752
2,334,156
569,444

62,949
49,805
59,416
88,028
23,598

5,011,846
3,843,543
3,838,447
4,990,346
987,525

4,540,034
3,455,414
3,463,858
4,502,230
865,840

2,580,504
2,160,022
2,232,457
2,942,484
437,470

1,959,530
1,295,392
1,231,401
1,559,746
428,370

45,379
38,878
43,727
90,420
34,252

426,433
349,251
330,862
397,696
87,433

M a ry la n d ................................................
M a s s a c h u s e tts ....................................
M ic h ig a n ................................................
M in n e s o ta .............................................
M is s is s ip p i.............................................

628,546
1,574,900
2,082,201
1,070,967
384,376

617,366
983,724
2,743,823
1,261,707
398,750

421,546
832,688
2,122,675
930,006
375,263

2,267,198
5,003,221
8,894,109
3,519,398
1,135,715

80,957
255,116
331,331
129,301
52,285

4,015,613
8,649,649
16,174,139
6,911,379
2,346,389

3,591,247
7,377,286
14,733,182
6,202,194
2,119,293

2,143,060
5,228,709
6,024,793
3,132,161
1,359,566

1,448,187
2,148,577
8,708,389
3,070,033
759,727

101,652
508,292
370,945
171,926
43,613

322,714
764,071
1,070,012
537,259
183,483

State




CORPORATION

62,770,759

INSURANCE

5 0 S tates and D. C ..................................

15,891,719

DEPOSIT

T otal

T im e a n d
sa v in g s

FEDERAL

S tate

D e p o s its

165,447
28,021
44,608
30,242
12,017

9,556,356
1,256,714
2,619,213
801,370
695,839

8,516,311
1,138,426
2,333,802
720,484
605,236

5,243,468
603,273
1,550,091
359,305
326,741

3,272,843
535,153
783,711
361,179
278,495

233,270
21.469
47,333
14,074
25,884

806,775
91,436
238,078
66,812
64,719

N ew J e r s e y .......
N ew M e x ic o ___
N ew Y o r k ...........
N o rth C a r o lin a ..
N o rth D a k o ta ...

1,432,484
159,245
15,162,977
864,752
113,047

1,649,486
198,832
7,153,677
606,082
247,296

1,903,264
115,170
8,900,393
755,159
181,944

6,367,179
569,583
44,415,953
2,886,228
506,112

224,337
25,752
3,338,492
135,920
23,155

11,576,750
1,068,582
78,971,492
5,248,141
1,071,554

10,335,170
964,568
65,993,519
4,603,129
971,701

5,098,100
571,723
39,420,888
2,688,546
487,489

5,237,070
392,845
26,572,631
1,914,583
484,212

364,984
21.469
6,501,020
215,445
16,906

876,596
82,545
6,476,953
429,567
82,947

O h io .....................
O k la h o m a ..........
O re g o n ................
P e n n s y lv a n ia ...
R h o d e Is la n d ...

2,604,020
864,825
463,513
3,364,242
146,227

3,112,443
775,301
501,926
3,293,246
126,159

2,356,818
502,177
391.054
3,096,162
244,384

9,637,393
2,115,710
1,827,535
13,216,602
863,690

307.923
78,594
115,737
537,014
24,518

18,018,597
4,336,607
3,299,765
23,507,266
1,404,978

16,133,224
3,851,657
2,981,789
20,630,391
1,233,726

7,821,650
2,487,464
1,328,124
10,275,147
557,599

8,311,574
1,364,193
1,653,665
10,355,244
676,127

426,876
95,155
87,331
796,916
58,921

1,458,497
389,795
230,645
2,079,959
112,331

S o u th C a ro lin a .
S o u th D a k o ta . .
T e n n e s s e e ........
T e x a s ...................
U t a h .....................

316,020
145,259
1,054,942
4,073,287
251,235

271,607
295,567
893,245
2,776,470
182,552

223,870
129,072
707,969
2,482,985
211,291

862,312
591,968
2,999,835
10,238,208
900,144

39,416
23,006
119,300
584,224
35,082

1,713,225
1,184,872
5,775,291
20,155,174
1,580,304

1,508,992
1,077,323
5,167,791
17,987,300
1,425,148

1,143,959
564,907
2,935,562
11,060,691
662,537

365,033
512,416
2,232,229
6,926,609
762,611

55,232
13,946
158,403
525,019
36,738

149,001
93,603
449,097
1,642,855
118,418

V e rm o n t.............
V irg in ia ...............
W a s h in g to n . . . .
W e st V ir g in ia . ..
W is c o n s in ..........
W y o m in g ............

57,567
793,066
737,337
298,452
990,618
103,680

95,516
850,320
602,121
560,873
1,547,435
137,056

72,621
673,635
495,889
254,684
872,219
51,055

408,652
3,336,370
2,462,448
946,423
3,706,743
317,075

10,952
119,651
127.923
43,056
142,434
15,174

645,308
5,773,042
4,425,718
2,103,488
7,259,449
624,040

584,293
5,155,443
3,972,216
1,857,799
6,587,181
558,789

200,913
2,552,198
2,162,173
1,031,281
3,137,933
289,594

383,380
2,603,245
1,810,043
826,518
3,449,248
269,195

11,084
149,787
122,577
42,878
129,129
11,071

49,931
467,812
330,925
202,811
543,139
54,180

93,285
3,354

91,662
8,414

74,420
2,679

571,956
21,654

25,133
694

856,456
36,795

742,182
33,016

326,759
10,106

415,423
22,910

33,148
1,396

81,126
2,383

Other area
P u e rto R ico. . ..
V irg in I s la n d s . .

BANKS

4,767,786
648,375
1,374,261
435,243
444,412

O
F

1,267,127
146,949
280,406
100.054
58,094

LIABILITIES

1,678,263
253,441
459,038
140,874
90,633

AND

1,677,733
179,928
460,900
94,957
90,683

ASSETS

M is s o u r i.............
M o n ta n a .............
N e b ra s k a ...........
N e v a d a ...............
N ew H a m p s h ire

1 Asset and lia b ility items are averages of the amounts reported for the following call dates: December 31,1965; June 30,1966; and December 31,1966.
2 Excludes as of December 31, 1966, corporate stocks, other than Federal Reserve bank stock, of national banks; reported with “ All other assets” .
Note: For income data by State, see Table 117, pp. 168-177.
Back figures, 1946-1965: See the Annual Report for 1965, pp. 146-147, and earlier reports.

153




154

Table 110. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1966
B A N K S G R O U PE D A C C O R D IN G TO A M O U N T OF DEPO SITS A N D BY R A TIO S OF S E LEC TED ITEM S TO A S SET S OR DE PO SITS
N u m b e r o f b a n k s w ith d e p o s its o f—
$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
more

1
6
45
28
13
2

48
45
2

R atios of o b lig atio n s of S tates and su b divisions to
to ta l assets of—
M o re th a n z e ro b u t le ss th a n 1 p e r c e n t....................
5 to 9 9 9 p e rc e n t
..........................................
10 to 1 4 .9 9 p e r c e n t .............................................................
15 to 19 9 9 p e rc e n t
.....................................
2 0 p e r c e n t o r m o r e ..
.............................................

182
66
131
51
18
9
2

415
269
575
242
96
33
33

562
370
1,115
1,035
638
298
161

201
77
422
974
935
417
248

66
35
242
708
728
461
207

9
6
57
210
242
165
63

6
4
25
88
141
64
24

1
1
13
129
103
57
16

1,228
4,511
4,200
2,307
893
301
101

33
94
118
95
70
29
20

76
318
488
421
228
97
35

301
1,017
1,315
983
406
123
34

265
1,143
1,181
510
129
39
7

266
1,093
783
236
54
10
5

97
401
205
42
5
2

58
204
74
14
1
1

84
196
34
6

27
188
755
2,140
4,276
4,265
1,890

10
27
60
120
106
98
38

9
47
180
341
514
415
157

5
69
304
816
1,314
1,120
551

1
30
150
506
1,120
1,029
438

2
9
52
275
825
863
421

3
4
51
236
323
135

3
4
18
89
164
74

1
12
63
184
60

3,642
5,373
2,747
1,154
401
124
100

75
110
106
77
41
20
30

403
599
349
178
83
29
22

1,199
1,605
839
358
121
32
25

918
1,399
637
218
69
25
8

711
1,075
469
147
29
11
5

194
332
149
67
9
1

99
125
83
32
11
1
1

38
114
83
52
21
3
9

R atios of U . S. G o v e rn m e n t o b lig atio n s to to tal
assets o f—
Less th a n 10 p e rc e n t
.................................
10 to 1 9 .9 9 p e rc e n t
.................................................
2 0 to 2 9 .9 9 p e r c e n t .............................................................
3 0 to 3 9 9 9 p e rc e n t
..................
4 0 to 4 9 9 9 p e rc e n t
5 0 to 5 9 9 9 p e rc e n t

n^rront nr mnrp

R atios of loans to to tal assets of—

I pcc than 10 nprrpnt

10
20
30
40
50
60

to 19 9 9 p e rc e n t
to 2 9 9 9 p e rc e n t
...
to 3 9 9 9 p e r c e n t .............................................................
to 4 9 9 9 p e rc e n t
.....................................
to 5 9 9 9 p e r c e n t .............................................................
p e rc e n t o r m o r e ..............................................................

Ratios o f cash and d ue fro m ban ks to to ta l assets of—
Less th a n 10 p e rc e n t
.....................................
10 to 1 4 9 9 p e rc e n t .
...........................................
15 to 19 9 9 p e r c e n t .............................................................
2 0 to 2 4 9 9 p e rc e n t
...................................
2 5 to 2 9 9 9 p e rc e n t
...........................................
3 0 to 3 4 9 9 p e rc e n t .
...............................................

qk

nprrpnt nr mnrp




1
9
69
16

5
14
32
25
17
2

CORPORATION

1,442
829
2,586
3,482
2,929
1,517
756

FEDERAL

Less
than
$1,000,000

INSURANCE

All
ba n k s

DEPOSIT

R a tio s

Ratios of to tal d e m a n d d ep o sits to to tal dep osits o f Less th an 20 p e rc e n t...........................................................
20 to 29.99 p e rc e n t..............................................................
30 to 39.99 p e rc e n t.............................................................
40 to 49.99 p e rc e n t.............................................................
50 to 59.99 p e rc e n t.............................................................
60 to 69.99 p e rc e n t.............................................................
70 to 79.99 p e rc e n t.............................................................
80 percen t or m o re ..............................................................

84
623
2,098
3,391
3,315
2,199
950
881

5
7
17
46
73
85
83
143

4
42
173
301
381
316
202
244

22
195
612
1,019
1,068
651
304
308

28
181
584
852
816
518
175
120

19
140
461
746
589
373
88
31

5
34
139
224
192
106
36
16

15
68
107
96
40
22
4

R atios o f to ta l c a p ita l accounts to to ta l assets
o th e r th an cash and d ue fro m ban ks, U. S.
G o ve rn m en t ob lig atio n s , C.C.C. loans, and
F .H .A . and V.A. re al es tate loans of—
Less th an 10 p e rc e n t..........................................................
10 to 14.99 p e rc e n t.............................................................
15 to 19.99 p e rc e n t............................................................
20 to 24.99 p e rc e n t.............................................................
25 to 29.99 p e rc e n t.............................................................
30 to 34.99 p e rc e n t.............................................................
35 to 39.99 p e rc e n t.............................................................
40 p ercen t or m o re ..............................................................

1,999
6,208
2,912
1,221
509
267
153
272

3
49
98
89
53
46
35
86

37
370
482
333
179
99
58
105

265
1,637
1,304
560
212
88
47
66

486
1,903
625
167
50
21
11
11

708
1,359
299
54
10
11
2
4

260
425
55
10
1
1

128
198
17
6
2
1

96
194
26
2
2

Ratios o f to ta l c a p ita l accounts to to tal assets of—
Less th an 4 p e rc e n t..............................................................
4 to 5.99 p e rc e n t....................................................................
6 to 7.99 p e rc e n t....................................................................
8 to 9.99 p e rc e n t....................................................................
10 to 11.99 p e rc e n t..............................................................
12 to 14.99 p e rc e n t..............................................................
15 percen t or m o r e ...............................................................

35
980
4,754
4,165
1,969
1,033
605

1
24
94
109
111
120

1
18
270
464
385
315
210

3
121
1,147
1,488
818
411
191

5
264
1,377
1,047
402
120
59

12
337
1,168
675
180
54
21

7
144
353
193
40
13
2

6
50
196
81
13
4
2

1
40
171
86
17
5

5
48
37
5

N u m b e r of b a n k s ........................................................................

13,541

459

1,663

4,179

3,274

2,447

752

352

320

95

3
5
17
21
37
12

ASSETS

16
73
6

AND
LIABILITIES
O
F
BANKS

Back figures, 1958-1965:

1
6
39
79
79
73
28
15

See the Annual Report for 1965, pp. 148-149, and earlier reports.

155




156

INCOME OF INSURED BANKS

Table 112.

Table 114.

Table 117.
Table 118.
Table 119.
Table 120.




CORPORATION

Table 116.

INSURANCE

Table 115.

DEPOSIT

Table 113.

Income of insured commercial banks in the United States (States and other
areas), 1958-1966
Ratios of income of insured commercial banks in the United States (States
and other areas), 1958-1966
Sources and disposition of total income, insured commercial banks in the
United States (States and other areas), 1958-1966
Income of insured commercial banks in the United States (States and other
areas), 1966
Banks grouped by class of bank
Income of insured commercial banks operating throughout 1966 in the
United States (States and other areas)
Banks grouped according to amount of deposits
Ratios of income of insured commercial banks operating throughout 1966
in the United States (States and other areas)
Banks grouped according to amount of deposits
Income of insured commercial banks in the United States (States and other
areas), by State, 1966
Income of insured mutual savings banks, 1958-1966
Ratios of income of insured mutual savings banks, 1958-1966
Sources and disposition of total income, insured mutual savings banks,
1958-1966

FEDERAL

Table 111.

The income data received and published by the Corporation relate
to com m ercial and mutual savings banks insured by the Corporation.

Commercial banks

INSURED
BANKS

The present report of income and dividends for mutual savings
banks was first used by the Corporation for the calendar year 1951.
For a discussion of the history and principles of this report see pp.
50-52 in Part Two of the 1951 Annual Report.

O
F

Sources of data
National banks and State banks in the D istrict of Columbia not
members of the Federal Reserve System: Office of the Com ptroller
of the Currency.
State banks members of the Federal Reserve System: Board of
Governors of the Federal Reserve System.
Other insured banks: Federal Deposit Insurance Corporation.
157




Mutual savings banks

INCOME

Reports of income and dividends are submitted to the Federal
supervisory agencies on either a cash or an accrual basis.
Income data are included for all insured banks operating at the
end of the respective years, unless indicated otherwise. In addition,
appropriate adjustm ents have been made for banks in operation
during part of the year but not at the end of the year. Data for 5
insured branches in Guam of 2 insured banks in California and
Hawaii, for 7 insured branches in New York of 2 insured banks in
Puerto Rico, fo r 16 insured branches in Puerto Rico and for 7
insured branches in the Virgin Islands of insured banks in New
York are not available.
The uniform Report of Income and Dividends (formerly called
Report of Earnings and Dividends) was revised extensively in 1961.
New items were added, com bining components previously included
in other items; and some items were subsumed into new categories.
Thus certain items, even carrying the same designation (e.g. other
current operating expenses), are not comparable with data reported
for prior years.
The revised form breaks out the follow ing items not previously
available separately: (1) benefits to officers and other employees;
(2) net occupancy expense of bank premises, with a supporting
schedule; (3) furnitu re and equipm ent expense (including costs
related to the purchase or rental of automated data processing
systems); and (4) losses on securities sold.
Two expense items previously reported separately have been com ­
bined with other items: (1) taxes other than on net income; and

(2) recurring depreciation on banking house, furniture and fixtures.
Taxes on bank premises, social security taxes paid in behalf of
building employees, and recurring depreciation on banking house
are now included under occupancy expense of bank premises. Other
social security taxes are included with officer and employee benefits.
Recurring depreciation on furniture and fixtures is now included
with furniture and equipm ent expense.
Revenue and expenses incident to “ Federal funds” transactions
have been classified as “ Interest and discount on loans” and “ In­
terest and discount on borrowed money,” respectively.
In addition to other m inor changes in classification, new designa­
tions have been given to certain items. For example, the term “ net
incom e” is the new equivalent of the form er term “ net profits.” A
further change entailed the division of officers and other employees
into two groups: those engaged in banking operations, and those
concerned with building operations.

Table 111. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1958-1966

1958

In co m e item

1959

158

(A m ounts in th o u s a n d s of d o lla rs )

1 9 62

1963

1964

1965

1966

12,218,959
2,093,207
759,030
7,578,200
139,645
681,243
237,446
543,916
'186,272

13,509,713
2,176,454
921,060
8,516,837
155,478
728,857
248,362
573,252
>189,413

15,024,487
2,240,389
1,085,334
9,612,079
173,159
781,405
280,289
629,694
*222,138

16,817,187
2,224,711
1,285,287
10,999,867
204,996
842,775
304,276
689,628
1 265,647

19,508,414
2,317,794
1,531,517
13,042,757
243,643
915,049
354,036
756,130
1
347,488

8,589,177

9,714,980
21 ,183,264
22 ,101,111
457,033
67,469
3,464,308
106,517
(4)

10,897,460
21,284,140
22 ,234,922
490,732
72,176
4,088,061
127,277
(4)

12,486,120
21,392,765
22 ,369,259
525,692
77,093
5,070,781
189,519

14,561,852
21,526,300
22 ,569,442
598,768
83,791
6,259,472
301,768
e)

10,723,545
1,790,341
578,783
6,698,655
108,655
589,954
218,566
460,251
278,340

11,069,604
1,901,732
629,134
6,891,442
117,259
630,458
223,283
502,871
473,425

5,612,723
827,142
1,573,330

6,264,207
892,657
1,684,159
(3)
51,866
1 580,250
78,350
252,763

6,932,820
966,643
1,831,323
(3)
56,292
1,785,086
87,385
285,801

7,440,492
21,028,869
21,869,961
377,494
59,794
2,106,645
37,997
(4
)

21,975,406
419,098
63,236
2,845,283
64,325
(4)

(7)
1,369,305

191,424
((i>
(7)
1,532,739

212,493
(6)
(7)
1,707,797

(5)
510,691
224,852
81,224,189

(6)
555,670
267,885
*1,300,128

(5)
608,462
311,518
81,415,298

(5)
670,243
362,301
*1,567,608

(5)
731,573
411,889
81,717,549

( 5)
802,060
458,695
81,961,556

.........................

2,888,223

3,405,145

3,790,725

3,629,112

3,629,782

3,794,733

4,127,027

4,331,067

4,946,562

R ecoveries, tra n s fe rs fro m valuation reserves, and profits—
to tal
..............................................................................

868,115

328,889

574,826

708,171

467,061

468,450

322,104

390,368

341,711

681,554
9,646
57,145

47,277
27,946
111,447

329,322
12,927
55,568

453,730
9,934
86,574

256,987
6,241
56,761

167,445
4,046
60,516

74,723
6,633
57,284

84,619
7,114
97,435

62,464
5,077
100,950

22,439
42,158
55,176

20,551
57,607
64,062

25,684
70,211
81,114

16,825
51,817
89,291

16,902
56,610
73,560

17,913
131,235
87,295

17,383
62,313
103,768

17,962
84,001
99,237

15,585
55,762
101,873

783,213

1,361,515

978,422

935,461

836,665

883,637

1,017,299

1,177,540

1,574,027

58,939
12,603
95,039

49,887
12,827
63,530

88,397
11,256
72,213

85,045
9,224
63,370

454,911
10,198
78,932

32,385

(3
)

Taxes o ther th an on n et incom e
...........................
R ecurring dep reciation on b an kin g house, fu rn itu re and
fixtures
....................................................
Occupancy expense of bank p rem is es— n et ..........................
F urniture and e q u ip m e n t
............................................
O th er c u rre n t o p e ratin g expenses ..............................................
Net current operating earnings

On s e c u ritie s :

Profits on securities sold or re d eem ed
...........................
Recoveries
....................................................
T ransfers fro m valuation reserves
...........................
On loans:
R ecoveries
......................................................................................
Tran sfers fro m valuation reserves ..........................................
Losses, charge-offs, and tra n s fe rs to va lu a tio n reserves—
On securities:
Losses on securities sold
..............................................
C harge-offs prior to sale
..................................................
T ran sfers to valuation reserves
..............................................
On loans:
Losses and charge-offs
......................................................
T ransfers to valuation reserves
.................................
Net income
 before related taxes..............................................


48,271
1,380,575
24,161
221,571
168,371
(6)

n , 098,146

(4
)

93,657
268,159

745,081
168,003

219,767
156,232

/ 44,290
\ 21,354
224,678

25,053
114,117

25,459
318,965
104,006

35,760
451,667
114,996

31,194
481,200
132,745

30,107
528,710
111,267

29,588
609,059
118,746

666,040
147,008

36,188
846,877
136,836

31,251
775,792
222,943

2,973,128

2,372,519

3,387,129

3,401,822

3,260,178

3,379,546

3,431,832

3,543,895

3,714,246

282,227

CORPORATION

9,669,352
1 732,174
546,253
5,856,688
111,991
531,916
205,935
426,016
258,381

INSURANCE

8,500,949
1,544,023
501,978
5,046,782
94,674
486,507
191,408
379,395
256,183

DEPOSIT

19 61

FEDERAL

1960

1,384,397
1,300,940
83,457

1,406,102
1,317,292
88,810

1,256,382
1,159,725
96,657

1,226,783
1,130,629
96,154

1,148,203
1,050,624
97,579

1,029,162
927,423
101,739

1,029,906
911,585
118,321

Net income after related taxes.................................................

1,701,667

1,488,061

2,002,732

1,995,720

2,003,796

2,152,763

2,283,629

2,514,733

2,684,340

Dividends and interest on capital—to ta l.................................
Cash dividends declared on com m on s to ck..............................
Dividends declared on p refe rred stock and interest on
capital notes and d e b e n tu re s .......................................................

725,866
723,500

776,386
774,167

831,546
829,522

895,053
893,230

941,189
939,426

993,374
990,039

1,088,310
1,062,561

1,202,349
1,146,186

1,307,387
1,240,048

2,366

2,219

2,024

1,823

1,763

3,335

25,749

56,163

67,339

Net additions to capital from incom e......................................

975,802

711,675

1,171,186

1,100,667

1,062,607

1,159,389

1,195,319

1,312,384

1,376,953

Memoranda
Recoveries credited to valuation reserves (n ot included in
recoveries above):
On s e cu rites................................................................................................
On lo an s ........................................................................................................
Losses charged to valuation reserves (n o t included in losses
above):
On se c u ritie s ..............................................................................................
On lo a n s .......................................................................................................

10,410
69,073

5,585
73,790

18,294
68,232

9,911
73,844

4,714
84,863

6,216
96,897

4,515
157,791

4,158
124,062

3,300
143,859

19,741
127,515

207,061
122,315

47,716
264,405

22,463
249,500

16,305
238,825

17,314
323,475

43,683
394,181

25,761
429,490

60,282
545,647

Average assets and lia b ilitie s 9
Assets—to ta l............................................................................... 228,359,687
Cash and due from b a n k s ................................................................... 46,766,041
U n ited S tate s G o v e rn m e n t o b lig atio n s........................................ 62,355,819
O th er se cu rities........................................................................................ 19,237,561
Loans and d isco u n ts.............................................................................. 95,666,835
All o th er a s s e ts .........................................................................................
4,333,431

237,577,389
46,881,654
61,878,548
20,284,525
103,872,351
4,660,311

246,776,722
49,317,003
57,773,429
20,092,632
114,275,450
5,318,208

254,198,199
46,613,211
61,792,135
21,660,321
117,969,985
6,162,547

274,220,778
49,438,670
64,519,914
25,761,084
127,789,110
6,712,000

298,940,778
50,997,566
64,058,431
31,421,875
145,028,233
7,434,673

325,490,626
54,449,343
61,439,390
36,360,062
164,816,703
8,425,128

357,214,409
59,013,596
59,419,551
41,540,772
187,661,591
9,578,899

387,113,663
62,867,398
56,088,649
47,054,812
210,240,170
10,862,634

Liabilities and capital—to ta l..................................................... 228,359,687
Total d ep o sits............................................................................................ 206,196,015

237,577,389
213,428,979

246,776,722
220,099,028

254,198,199
225,214,703

274,220,778
243,319,550

298,940,778
264,069,489

325,490,626
287,988,560

357,214,409
315,643,533

387,113,663
340,336,714

5,410,250
18,738,160

6,712,522
19,965,172

7,694,509
21,288,987

8,197,420
22,703,808

10,587,389
24,283,900

11,110,692
26,391,374

12,750,015

28,820,861

15,926,263
30,850,686

Demand deposits ........................................................................................ 143,813,475
Time and savings deposits ......................................................................... 62,382,540

146,599,745
66,829,234

150,451,481
69,647,547

147,556,175
77,658,528

153,849,494
89,470,056

159,561,973
104,507,516

168,382,122
119,606,438

178,089,360
137,554,173

185,336,407
155,000,307

4,440,097
17,723,575

N u m b e r of em ployees (including building em ployees),
D ec em b er 31 :
Active o ffic e rs ............................................................................................
O th er e m p lo y e e s ......................................................................................

95,308
457,023

98,934
481,666

103,211
506,596

107,279
526,101

112,458
543,695

117,147
531,820

124,351
578,307

130,486
601,677

138,206
639,155

N u m b e r of banks, D ec em b er 3 1 .........................................................

13,124

13,114

13,126

13,115

13,124

13,291

13,493

13,547

13,541




159

1 Excludes rentals from bank premises; included with “Occupancy expense of bank premises—net.”
2 Excludes compensation of building officers and other employees; included with “Occupancy expense of bank premises—net.”
3 Included with “Other current operating expenses” , except Social Security taxes paid on bank's account which were included with “Taxes other than on net income.”
4 Included with “Officer and employee benefits”, “Occupancy expense of bank premises—net”, and "Other current operating expenses.”
5 Included with “Occupancy expense of bank premises—net", and "Furniture and equipment.”
6 Included with "Taxes other than on net income”, "Recurring depreciation on banking house, furniture and fixtures”, and “Other current operating expenses.”
7 Included with “Recurring depreciation on banking house, furniture and fixtures”, and "Other current operating expenses.”
8 Not comparable with amounts reported for previous years; see footnotes 3, 4, 6, and 7.
9 For 1958 through 1960 and for 1964 through 1966, averages of amounts reported at beginning, middle, and end of year. For 1961 and 1962, averages of amounts for four consecutive official call dates beginning
with the end of the previous year and ending with the fall call of the current year. For 1963, averages of amounts reported at 1962 year-end, 1963 spring, mid-year, and year-end calls.
Note: Due to rounding differences, data for 1958-1959 may not add to totals.
Back figures, 1984-1957: See the following Annual Reports: 1957, pp. 118-119; 1950, pp. 250-251; and 1941, pp. 158-159.

BANKS

Borrowings and o th e r lia b ilities........................................................
Total capital a c c o u n ts ...........................................................................

INSURED

884,458
832,797
51,661

O
F

1,271,459
1,198,890
72,570

INCOME

Taxes on net income—to ta l......................................................
F e d e ra l..........................................................................................................
S ta te ...............................................................................................................

T a b le 1 1 2 .

RATIOS OF INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1958-1966
1963

1964

1965

1966

$100.00
18.16
5.91
60.48
5.72
2.25
7.48

$100.00
17.91
5.65
61.73
5.50
2.13
7.08

$100.00
16.69
5.40
63.48
5.50
2.04
6.89

$100.00
17.18
5.68
63.31
5.70
2.02
>6.11

$100.00
17.13
6.21
63.16
5.58
1.94
*5.98

$100.00
16.11
6.82
64.19
5.39
1.84
>5.65

$100.00
14.91
7.22
65.13
5.20
1.87
>5.67

$100.00
13.23
7.64
66.63
5.01
1.81
*5.68

$100.00
11.88
7.85
68.11
4.69
1.81
*5.66

Current operating expenses—to ta l....................................................................................
Salaries, wages, and fees.................................................................................................
Officer and employee benefits.........................................................................................
Interest on time and savings deposits............................................................................
Taxes other than on net income......................................................................................
Recurring depreciation on banking house, furniture and fixtures.............................
Occupancy expense of bank premises—n e t..................................................................
Furniture and equipm ent.................................................................................................
Other current operating expenses.................................................................................

66.02
28.80
(3)
16.24
2.61
1.98
(6
)
(7)
16.39

64.78
27.19
(3)
16.34
2.61
1.98
(6)
(7)
16.66

64.65
26.62
(3)
16.65
2.66
1.98
(6)
(7)
16.74

67.22
226.73
3.41
19.03
(4)
(5)
4.61
2.03
811.41

70.29
225.67
3.43
23.28
(4)
(5)
4.55
2.19
*11.17

71.91
224.81
3.38
25.64
(4)
(5)
4.50
2.31
811.27

72.53
223 . 90
3.27
27.21
(4)
(5)
4.46
2.41
*11.28

74.25
222.83
3.13
30.15
(4)
(5)
4.35
2.45
811.34

74.64
220.99
3.07
32.09
( 4)
( 5)
4.11
2.35
*12.03

Net current operating earnings..........................................................................................

33.98

35.22

35.35

32.78

29.71

28.09

27.47

25.75

25.36

Amounts per $100 of total assets9
Current operating revenue—total....................................................................................
Current operating expenses—total.................................................................................
Net current operating earnings.......................................................................................
Recoveries, transfers from valuation reserves, and profits—total..............................
Losses, charge-offs, and transfers to valuation reserves—total..................................
Net income before related taxes.....................................................................................
Net income after related taxes........................................................................................

3.72
2.46
1.26
.38
.34
1.30
.75

4.07
2.64
1.43
.14
.57
1.00
.63

4.35
2.81
1.54
.23
.40
1.37
.81

4.35
2.92
1.43
.28
.37
1.34
.79

4.45
3.13
1.32
.17
.30
1.19
.73

4.52
3.25
1.27
.16
.30
1.13
.72

4.62
3.35
1.27
.10
.32
1.05
.70

4.71
3.50
1.21
.11
.33
.99
.70

5.04
3.76
1.28
.09
.41
.96
.69

Amounts per $100 of total capital accounts9
Net current operating earnings.......................................................................................
Recoveries, transfers from valuation reserves, and profits—total..............................
Losses, charge-offs, and transfers to valuation reserves—total..................................
Net income before related taxes.....................................................................................
Taxes on net income.........................................................................................................
Net income after related taxes........................................................................................
Cash dividends declared...................................................................................................
Net additions to capital from income..............................................................................

16.30
4.89
4.42
16.77
7.17
9.60
4.09
5.51

18.17
1.76
7.27
12.66
4.72
7.94
4.14
3.80

18.99
2.88
4.90
16.97
6.94
10.03
4.16
5.87

17.05
3.32
4.39
15.98
6.61
9.37
4.20
5.17

15.99
2.06
3.69
14.36
5.53
8.83
4.15
4.68

15.63
1.93
3.64
13.92
5.06
8.86
4.09
4.77

15.64
1.22
3.86
13.00
4.35
8.65
4.12
4.53

15.03
1.35
4.08
12.30
3.57
8.73
4.17
4.56

16.03
1.11
5.10
12.04
3.34
8.70
4.24
4.46

Special ratios9
Income on loans per $100 of loans................................................................................
Income on U. S. Government obligations per $100 of U. S. Government obligations
Income on other securities per $100 of other securities.............................................
Service charges per $100 of demand deposits.............................................................
Interest paid per $100 of time and savings deposits...................................................

5.37
2.48
2.61
.34
2.21

5.75
2.80
2.69
.36
2.36

5.96
3.10
2.88
.39
2.56

5.94
3.08
2.90
.43
2.71

6.04
3.24
2.95
.44
3.18

5.98
3.40
2.93
.46
3.31

5.94
3.65
2.98
.46
3.42

5.97
3.74
3.09
.47
3.69

6.32
4.13
3.25
.49
4.04

Number of banks, December 3 1 .........................................................................................

13,124

13,114

13,126

13,115

13,124

13,291

13,493

13,547

13,541

Note: For footnotes 1 through 9, see Table III, p. 159.

Back figures,
 1934-1957: See the following Annual Reports: 1957, pp. 120-121; 1950, pp. 252-253; and 1941, pp. 160-161.


CORPORATION

1962

INSURANCE

1 9 61

DEPOSIT

1960

FEDERAL

1959

In c o m e ite m

160

1958

Amounts per $100 of current operating revenue
Current operating revenue—to ta l.......................................................................................
Interest on U. S. Government obligations......................................................................
Interest and dividends on other securities.....................................................................
Income on loans................................................................................................................
Service charges on deposit accounts..............................................................................
Other charges, commissions, fees, etc...........................................................................
Other current operating revenue....................................................................................

Table. 113. SOURCES AND DISPOSITION OF TOTAL INCOME, INSURED COMMERCIAL BANKS IN THE UNITED
STATES (STATES AND OTHER AREAS), 1958-1966
(A m o u n ts in m illio n s o f d o lla rs )

Incom e item

1958

1959

1960

1 9 61

1962

1963

1964

1 9 65

1966

Amount
11,778

12,686

13,978

15,347

17,208

19,850

5,141
1,544
502
487
x827
868

5,969
1,732
546
532
*890
329

6,807
1,791
579
590
1957
575

7,009
1,902
629
630
900
708

7,718
2,093
759
681
968
467

8,672
2,176
921
729
1,011
468

9,785
2,240
1,086
781
1,132
322

11,205
2,225
1,285
843
1,260
390

13,286
2,318
1,532
915
1,457
342

Disposition
Salaries and w ages2....................................................................................................................................
In te re s t on d e p o s its ...................................................................................................................................
O th er c u rre n t e x p e n s e s ...........................................................................................................................
Charge-offs, e tc ............................................................................................................................................
Incom e ta x e s ..................................................................................................................................................
Dividends and in te res t on c a p ita l.......................................................................................................
A dditions to capital a c c o u n ts ................................................................................................................

2,449
1,381
31,783
783
1,271
726
976

2,629
1,580
32 ,055
1,362
884
776
712

2,854
1,785
32 ,293
979
1,384
832
1,171

3,336
2,107
1,998
935
1,406
895
1,101

3,556
2,845
2,188
837
1,256
941
1,063

3,808
3,464
2,442
884
1,227
993
1,159

4,082
4,088
2,728
1,017
1,148
1,088
1,195

4,365
5,071
3,051
1,178
1,029
1,202
1,312

4,778
6,259
3,524
1,574
1,030
1,307
1,377

Total incom e........................................................................................................................

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

Sources
Lo a n s..................................................................................................................................................................
U.S. G o ve rn m en t o b lig a tio n s .................................................................................................................
O th er s e c u ritie s ............................................................................................................................................
Service charges on d e p o s its ..................................................................................................................
O th er c u rre n t in c o m e ................................................................................................................................
Recoveries, e tc .............................................................................................................................................

54.9
16.5
5.3
5.2
8.8
9.3

59.7
17.3
5.5
5.3
8.9
3.3

60.2
15.9
5.1
5.2
8.5
5.1

59.5
16.2
5.3
5.4
7.6
6.0

60.8
16.5
6.0
5.4
7.6
3.7

62.0
15.6
6.6
5.2
7.2
3.4

63.8
14.6
7.1
5.1
7.3
2.1

65.1
12.9
7.5
4.9
7.3
2.3

66.9
11.7
7.7
4.6
7.4
1.7

Disposition
Salaries and w a g e s .....................................................................................................................................
In te re s t on d e p o s its ...................................................................................................................................
O th er c u rre n t e x p e n s e s ...........................................................................................................................
Charge-offs, e tc ............................................................................................................................................
Incom e ta x e s ..................................................................................................................................................
Dividends and in te res t on c a p ita l.......................................................................................................
Additions to capital a c c o u n ts ................................................................................................................

26.1
14.7
19.1
8.4
13.6
7.7
10.4

26.3
15.8
20.6
13.6
8.8
7.8
7.1

25.3
15.8
20.3
8.6
12.2
7.4
10.4

28.3
17.9
17.0
7.9
11.9
7.6
9.4

28.0
22.4
17.2
6.6
10.0
7.4
8.4

27.2
24.8
17.5
6.3
8.8
7.1
8.3

26.6
26.6
17.8
6.6
7.5
7.1
7.8

25.4
29.5
17.7
6.8
6.0
7.0
7.6

24.0
31.5
17.7
8.0
5.2
6.6
7.0

Percentage distribution




161

1 For description of changes in report form made in 1961, see p. 157. Rentals from bank premises are included in "other current income” in 1958-1960, and in net “other current expenses” in 1961-1966.
2 Includes in each year fees paid to directors and committees. In 1961-1966 includes officer and employee benefits; these were included in “other current expenses” in 1958-1960. In 1961-1966 excludes
salaries, wages, and benefits of officers and employees in building department which are included in “other current expenses.”
3 Not comparable with amounts shown in 1961-1966; see footnotes 1 and 2.
Note: Due to rounding differences, components may not add to totals.

BANKS

11,298

INSURED

9,998

O
F

9,369

Sources
L o a n s.................................................................................................... .............................................................
U.S. G ove rn m en t o b lig a tio n s .................................................................................................................
O th er s e c u ritie s ............................................................................................................................................
Service charges on d e p o s its ..................................................................................................................
O th er c u rre n t in c o m e ................................................................................................................................
Recoveries, e tc ..............................................................................................................................................

INCOME

Total incom e.........................................................................................................................

T a b le

162

1 1 4 . INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1966
BANKS GROUPED BY CLASS OF BANK

(Amounts in thousands of dollars)
M em bers F.R. System
Incom e item

Total
National

State

Not
m em bers
F.R. System

O perating
through out
th e year

O perating
less than
full year

3,448,036
616,178
266,434
2,153,982
46,388
210,356
88,658
33,658
32,382

19,497,005
2,315,758
1,530,927
13,035,499
243,406
914,598
353,763
756,117
346,937

11,409
2,036
590
7,258
237
451
273
13
551

Current operating expenses—to ta l.............................................................................
Salaries— o fficers................................................................................................................................
Salaries and w ages—oth er e m p lo y e e s ....................................................................................
O fficer and em ployee b e n e fits .....................................................................................................
Fees paid to directors and c o m m itte e s ...................................................................................
In te re s t on tim e and savings d e p o s its ....................................................................................
In te res t on borrowed m o n e y ........................................................................................................
O ccupancy expense of bank p rem ises— n e t.........................................................................
Furniture and e q u ip m e n t...............................................................................................................
O th er cu rre n t o p eratin g e x p en se s.............................................................................................

14,561,852
1,526,300
2,569,442
598,768
83,791
6,259,472
301,768
802,060
458,695
1,961,556

8,451,916
822,843
1,489,942
351,208
39,895
3,733,005
169,896
449,563
271,484
1,124,080

3,481,992
324,214
650,557
155,684
12,797
1,480,411
123,988
204,044
97,893
432,404

2,627,944
379,243
428,943
91,876
31,099
1,046,056
7,884
148,453
89,318
405,072

14,549,565
1,524,366
2,567,552
598,445
83,721
6,256,578
301,723
800,858
458,228
1,958,094

12,287
1,934
1,890
323
70
2,894
45
1,202
467
3,462

Net current operating earnings..................................................................................

4,946,562

2,853,462

1,273,008

820,092

4,947,440

-878

341,582

129

Recoveries, transfers from valuation reserves, and profits—to ta l.........................
On securities:
Profits on securities sold or re d e e m e d ...............................................................................
R ecoveries.........................................................................................................................................
Tran sfers from valuation re s e rv e s ........................................................................................
On loans:
R ecoveries..........................................................................................................................................
T ransfers fro m valuation re s e rv e s ........................................................................................
All o th e r...................................................................................................................................................

341,711

228,598

55,246

57,867

62,464
5,077
100,950

37,999
3,353
79,483

12,032
480
15,094

12,433
1,244
6,373

62,392
5,074
100,930

72
3
20

15,585
55,762
101,873

7,179
40,162
60,422

1,842
5,033
20,765

6,564
10,567
20,686

15,570
55,760
101,856

15
2
17

Losses, charge-offs, and transfers to valuation reserves—tota 1.............................
On securities:
Losses on securities s o ld ............................................................................................................
Charge-offs prior to s a le .............................................................................................................
Tran sfers to valuation re s e rv e s ..............................................................................................
On loans:
Losses and ch a rg e -o ffs................................................................................................................
T ran sfers to valuation re s e rv e s ..............................................................................................
All o th e r...................................................................................................................................................

1,574,027

910,315

419,472

244,240

1,573,211

816

454,911
10,198
78,932

236,736
4,715
53,501

175,585
1,065
13,739

42,590
4,418
11,692

454,768
10,199
78,899

143
-1
33

31,251
775,792
222,943

15,105
435,497
164,761

2,807
193,926'
32,350

13,339
146,369
25,832

31,237
775,352
222,756

14
440
187

Net income before related taxes................................................................................

3,714,246

2,171,745

908,782

633,719

3,715,811

-1,565




CORPORATION

4,755,000
469,831
363,957
3,188,090
62,011
172,132
70,522
327,117
101,340

INSURANCE

11,305,378
1,231,785
901,126
7,700,685
135,244
532,561
194,856
395,355
213,766

DEPOSIT

19,508,414
2,317,794
1,531,517
13,042,757
243,643
915,049
354,036
756,130
347,488

FEDERAL

Current operating revenue—to ta l...............................................................................
In te re s t on U. S. G o vernm ent o b lig atio n s..............................................................................
In te res t and dividends on oth er s e c u ritie s ...........................................................................
In te re s t and discount on lo a n s ....................................................................................................
Service charges and fees on lo a n s ............................................................................................
Service charges on deposit a c c o u n ts .......................................................................................
O th er charges, com m issions, fees, e tc ....................................................................................
T ru st d e p a rtm e n t...............................................................................................................................
O th er c u rre n t operatin g re v e n u e ...............................................................................................

Taxes on net income—to ta l.........................................................................................

1,029,906

607,047

266,608

156,251

1,029,882

24

S ta te .....................................................................................................................................................

911,585
118,321

545,591
61,456

222,034
44,574

143,960
12,291

911,576
118,306

9
15

Net income after related taxes...................................................................................

2,684,340

1,564,698

642,174

477,468

2,685,929

-1,589

Dividends and interest on capital—to ta l...................................................................

1,307,387

777,845

364,784

164,758

1,307,287

100

C ash d iv id e n d s d e c la re d on c o m m o n s t o c k .......................................................................
D iv id e n d s d e c la re d on p re fe rre d s to c k and in te re s t on c a p ita l n o te s a n d
d e b e n tu re s ............
.............................................................................................................

1,240,048

736,591

344,542

158,915

1,239,944

104

67,339

41,254

20,242

5,843

67,343

-4

Net additions to capital from incom e........................................................................

1,376,953

786,853

277,390

312,710

1,378,642

-1,689

137,803
606,120

72,968
362,034

25,205
O th e r e129,317y e e s ...
m p lo

280
39,630
137,523
...........................................................................................................
605,410
710
114,769

INCOME

N u m b e r o f b a n k in g e m p lo y e e s (e x c lu s iv e o f b u ild in g em plo y e e s ), D e cem b er 3 1 :
A c tiv e o ffic e r s
.................................................................................

Memoranda
518
22,222

500
28,191

3,302
143,839

-2
20

60,282
545,647

45,453
326,400

9,222
112,220

5,607
107,027

60,269
545,471

13
176

Occupancy expense of bank premises
Occupancy expense of bank premises, net—to ta l...................................................

802,060

449,563

204,044

148,453

800,858

1,202

R e n ta l a n d o th e r in c o m e ................................................................................................................

178,384

116,421

45,755

16,208

178,345

39

Occupancy expense of bank premises, gross—to ta l................................................

980,444

565,984

249,799

164,661

979,203

1,241

S a la rie s — b u ild in g d e p a rtm e n t o f fic e r s ................................................................................
S a la rie s a n d w a g e s— b u ild in g d e p a rtm e n t e m p lo y e e s ..................................................
B u ild in g d e p a rtm e n t p e rs o n n e l b e n e fits ............................................................................
R e c u rrin g d e p re c ia tio n ................................................................................................................
M a in te n a n c e a n d r e p a irs ...........................................................................................................
In s u ra n c e a n d u t ilit ie s .................................................................................................................
R e n ts p a id .........................................................................................................................................
T a x e s .................................................. ................................................................................................

2,968
97,881
12,528
177,848
111,752
167,268
268,767
141,432

1,884
58,787
7,719
107,379
67,358
94,915
143,049
84,893

807
25,336
3,726
41,394
24,062
40,515
79,919
34,040

277
13,758
1,083
29,075
20,332
31,838
45,799
22,499

2,968
97,816
12,509
177,666
111,599
167,029
268,274
141,342

65
19
182
153
239
493
90

N u m b e r o f b u ild in g e m p lo y e e s , D e c e m b e r 3 1 :
O ffic e rs ..................
............................
.........................................................
O th e r e m p lo y e e s ...
.............................. ...............................................................................

403
33,035

179
17,691

64
6,872

160
8,472

403
32,991

44

N u m b e r o f b a n k s , D e c e m b e r 3 1 ................................................................................................

13,541

4,799

1,350

7,392

13,440

101

BANKS

2,282
93,446

INSURED

3,300
143,859

O
F

R e co ve rie s c r e d ite d to v a lu a tio n re s e rv e s (n o t in c lu d e d in re co ve rie s a b o v e ):
On s e c u r itie s ....................................................................................................................................
On lo a n s ....................
.
.....................................................................................
Losse s c h a rg e d to v a lu a tio n re s e rv e s (n o t in c lu d e d in losses a b o v e ):
On s e c u r itie s ....................................................................................................................................
On lo a n s .............................................................................................................................................

Back figures, 1934-1965: See the Annual Report for 1965, pp. 156-157, and earlier reports.
163




Table 115. INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1966 IN THE UNITED STATES (STATES AND
OTHER AREAS)
B A N K S G RO UPED AC C O R D IN G TO A M O U N T O F DE PO SITS
(A m o u n ts in th o u s a n d s o f d o lla rs )

164

B a n k s w ith d e p o s its o f— 2
In c o m e ite m

All
banks1

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
more

1,268,694

2,108,624

1,437,916

1,347,421

3,610,193

8,790,132

178,745
48,633
472,033
4,992
41,469
23,342
736
6,616

249,082
99,812
787,108
10,027
77,600
28,938
4,884
11,243

358,024
179,116
1,331,381
21,862
139,204
39,051
18,607
21,379

223,047
125,899
913,761
17,547
90,454
23,960
27,282
15,966

188,453
116,588
868,229
21,229
74,498
26,563
35,025
16,836

413,828
283,721
2,412,111
51,173
179,237
62,101
163,553
44,469

663,576
669,017
6,157,719
115,924
305,071
144,128
505,724
228,973

Current operating expenses—to ta l.....................

14,549,565

14,171

102,660

584,492

957,157

1,610,397

1,098,923

1,036,100

2,684,512

6,461,153

S a la rie s — o f fic e r s .........................................................
S a la rie s a n d w a g e s— o th e r e m p lo y e e s ...............
O ffic e r a n d e m p lo y e e b e n e fits ..............................
Fees pa id to d ire c to rs a n d c o m m itt e e s .............
In te r e s t on tim e a n d s a v in g s d e p o s its ...............
In te re s t on b o rro w e d m o n e y ..................................
O c c u p a n c y e x p e n s e o f b a n k p re m is e s — n e t . ..
F u rn itu re a n d e q u ip m e n t .........................................
O th e r c u r re n t o p e ra tin g e x p e n s e s .......................

1,524,366
2,567,552
598,445
83,721
6,256,578
301,723
800,858
458,228
1,958,094

4,987
1,529
421
465
3,323
12
787
373
2,274

29,350
11,579
2,980
2,591
32,492
194
4,907
2,759
15,808

121,947
77,519
17,795
12,471
216,151
920
30,063
17,623
90,003

152,985
144,038
31,841
15,636
381,249
1,783
52,230
29,959
147,436

209,033
262,425
56,529
18,662
664,454
4,418
89,690
53,177
252,009

128,755
191,386
40,805
9,180
454,705
5,190
62,170
37,300
169,432

113,509
180,400
41,479
6,157
434,269
7,856
61,361
38,497
152,572

266,022
522,891
119,000
10,293
1,069,390
40,430
156,186
106,958
393,342

497,778
1,175,785
287,595
8,266
3,000,545
240,920
343,464
171,582
735,218

Net current operating earnings...........................

4,947,440

4,808

35,820

192,074

311,537

498,227

338,993

311,321

925,681

2,328,979

Recoveries, transfers from valuation reserves,
and profits—to ta l............................................

341,582

413

2,818

12,035

20,239

29,186

20,835

23,245

62,858

169,953

On s e c u ritie s :
P ro fits on s e c u ritie s sold o r re d e e m e d ..........
R e c o v e rie s ...................................................................
T ra n s fe rs fro m v a lu a tio n re s e rv e s ..................
On lo a n s:
R e c o v e rie s ...................................................................
T ra n s fe rs fro m v a lu a tio n r e s e r v e s ...................
A ll o t h e r ............................................................................

62,392
5,074
100,930

33
9
3

370
72
108

2,296
218
242

5,130
532
740

7,815
1,826
1,965

4,280
535
2,964

3,688
363
5,960

12,749
412
14,054

26,031
1,107
74,894

15,570
55,760
101,856

291
3
74

1,468
237
563

4,226
2,037
3,016

3,800
3,297
6,740

2,647
5,981
8,952

624
3,669
8,763

486
4,401
8,347

1,294
5,866
28,483

734
30,269
36,918

Losses, charge-offs, and transfers to valuation
reserves—to ta l................................................

1,573,211

1,004

8,856

55,017

90,214

148,540

98,833

98,463

244,703

827,581

454,768
10,199
78,899

46
21
7

528
107
167

6,330
1,253
939

13,793
1,971
2,045

27,448
2,527
4,069

24,930
993
3,432

24,797
1,594
4,276

66,777
464
14,985

290,119
1,269
48,979

31,237
775,352
222,756

490
281
159

3,284
3,582
1,188

10,373
28,963
7,159

8,047
53,592
10,766

5,427
91,491
17,578

1,270
57,492
10,716

884
57,584
9,328

1,057
136,100
25,320

405
346,267
140,542

3,715,811

4,217

29,782

149,092

241,562

378,873

260,995

236,103

743,836

1,671,351

On s e c u ritie s :
Losses on s e c u ritie s s o ld .....................................
C h a rg e -o ffs p rio r to s a le .......................................
T ra n s fe rs to v a lu a tio n r e s e r v e s ........................
On lo a n s:
L osses a n d c h a r g e - o ffs .........................................
T ra n s fe rs to v a lu a tio n r e s e rv e s ........................
All o t h e r ...........................................................................

Net income before related taxes.........................




CORPORATION

776,566

36,054
7,332
82,149
526
6,194
4,935
97
1,193

INSURANCE

138,480

4,949
809
11,008
126
871
745
209
262

DEPOSIT

18,979

2,315,758
1,530,927
13,035,499
243,406
914,598
353,763
756,117
346,937

FEDERAL

19,497,005

In te r e s t on U. S. G o v e rn m e n t o b lig a tio n s ........
In te r e s t an d d iv id e n d s on o th e r s e c u r it ie s . . . .
In te r e s t a n d d is c o u n t on lo a n s ..............................
S e rvice ch a rg e s an d fe e s on lo a n s ......................
S e rvice c h a rg e s on d e p o s it a c c o u n ts .................
O th e r ch a rg e s , c o m m is s io n s , fe e s , e tc ..............
T r u s t d e p a r t m e n t ........................................................
O th e r c u rre n t o p e ra tin g re v e n u e ..........................

Current operating revenue—total

Taxes on net income—to ta l..................................

1,029,882

778

5,638

31,445

58,418

99,081

71,800

63,891

217,735

F e d e ra l.............................................................................
S ta te ..................................................................................

481,096

911,576
118,306

712
66

5,101
537

28,598
2,847

54,099
4,319

92,855
6,226

67,145
4,655

59,416
4,475

203,467
14,268

400,183
80,913

Net income after related taxes...........................

2,685,929

3,439

24,144

117,647

183,144

279,792

189,195

172,212

526,101

1,190,255

Dividends and interest on capital—to ta l............

1,307,287

998

7,628

35,557

58,470

96,899

74,081

73,411

248,142

C ash d iv id e n d s d e c la re d on c o m m o n s t o c k . ..
D iv id e n d s d e c la re d on p r e fe rre d s to c k and
in te re s t on c a p ita l n o te s a n d d e b e n tu re s ___

712,101

1,239,944

998

7,628

35,513

58,178

95,930

72,444

71,093

236,883

661,277

44

292

969

1,637

2,318

11,259

50,824

Net additions to capital from incom e.................

1,378,642

2,441

16,516

82,090

124,674

182,893

115,114

98,801

277,959

478,154

N u m b e r o f b a n k in g e m p lo y e e s (e x c lu s iv e o f
b u ild in g e m p lo y e e s ), D e c e m b e r 3 1 :
A c tiv e o f fic e r s ...............................................................
O th e r e m p lo y e e s ..........................................................

137,523
605,410

975
680

4,342
4,084

14,785
23,266

16,414
56,719

19,951
70,673

11,278
49,985

9,648
45,986

21,407
123,128

38,723
230,889

67,343

Memoranda
62
6,729

42
12,641

398
22,456

859
13,692

414
15,990

588
24,586

939
46,885

60,269
545,471

224

31
2,405

267
20,307

540
38,536

2,185
72,402

3,426
44,930

3 345
44^449

13 468
95,996

37 007
226 i 222

Occupancy expense of bank premises
Occupancy expense of bank premises, n e ttotal ..................................................................

800,858

787

4,907

30,063

52,230

89,690

62,170

61,361

156,186

343,464

R e n ta l a n d o th e r in c o m e ..............................................

178,345

45

329

2,216

4,148

9,567

11,064

Occupancy expense of bank premises, gross—
to ta l..................................................................

14,810

49,522

86,644

979,203

832

5,236

32,279

56,378

99,257

73,234

76,171

205,708

430,108

S a la rie s— b u ild in g d e p a rtm e n t o f fic e r s .............
S a la rie s a n d w a g e s— b u ild in g d e p a rtm e n t
e m p lo y e e s ...................................................................
B u ild in g d e p a rtm e n t p e rs o n n e l b e n e fits ..........
R e c u rrin g d e p re c ia tio n .............................................
M a in te n a n c e a n d r e p a irs .........................................
In s u ra n c e a n d u t ilit ie s ..............................................
R e n ts p a id .......................................................................
T a x e s .................................................................................

2,968

2

8

34

26

71

89

171

733

1,834

97,816
12,509
177,666
111,599
167,029
268,274
141,342

43
2
105
125
348
70
137

385
9
932
746
1,802
497
857

2,959
141
6,702
3,913
8,559
4,643
5,328

5,632
338
12,314
6,801
12,267
10,009
8,991

10,066
819
20,579
11,846
19,068
20,620
16,188

8,103
839
14,247
9,412
12,268
16,924
11,352

7,826
866
13,116
9,800
11,390
22,235
10,767

23,449
3,163
36,062
23,937
30,951
58,802
28,611

39,353
6,332
73,609
45,019
70,376
134,474
59,111

N u m b e r o f b u ild in g e m p lo y e e s , D e c e m b e r 31:
O ffic e r s .............................................................................
O th e r e m p lo y e e s ..........................................................

403
32.991

111

79
1,332

35
3,170

26
3,381

31
3,926

18
2,758

23
2,651

67
6,875

124
8,787

N u m b e r o f b a n k s , D e c e m b e r 3 1 ..............................

13,440

433

1,624

4,154

3,265

2,447

751

351

320

BANKS

786

INSURED

74

O
F

3,302
143,839

INCOME

R e co ve rie s c re d ite d to v a lu a tio n re s e rv e s (n o t
in c lu d e d in re c o v e rie s a b o ve ):
On s e c u ritie s ..................................................................
On lo a n s ..........................................................................
L osse s c h a rg e d to v a lu a tio n re s e rv e s (n o t in ­
c lu d e d in lo sse s a b o ve ):
On s e c u r itie s .................................................................
On lo a n s ..........................................................................

95




165

1 This group of banks is the same as the group shown in Table 114 under the heading “Operating throughout the year”.
2 For asset and liability data, see Table 108, p. 151.
Back figures, 1941-1965: See the Annual Report for 1965, pp. 160-161, and earlier reports.

166

T a b le 1 1 6 .

RATIOS OF INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1966 IN THE UNITED STATES
(STATES AND OTHER AREAS) i
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS
B a n k s w ith d e p o s its o f— 2
In c o m e ite m

$1,000,000
to
$2,000,000

$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
more

$100.00

$100.00

$100.00

$100.00

$100.00

$100.00

$100.00

$100.00

$100.00

In te r e s t on U.S. G o v e rn m e n t o b lig a tio n s ...................................
In te r e s t a n d d iv id e n d s on o th e r s e c u r it ie s ................................
In c o m e on lo a n s .....................................................................................
S e rvice c h a rg e s on d e p o s it a c c o u n ts ...........................................
O th e r s e rv ic e c h a rg e s , c o m m is s io n s , fe e s , e tc ........................
O th e r c u r r e n t o p e ra tin g re v e n u e ...................................................

26.08
4.26
58.66
4.59
3.93
2.48

26.04
5.30
59.70
4.47
3.56
.93

23.02
6.26
61.43
5.34
3.00
.95

19.63
7.87
62.83
6.12
2.28
1.27

16.98
8.49
64.18
6.60
1.85
1.90

15.51
8.75
64.77
6.29
1.67
3.01

13.99
8.65
66.01
5.53
1.97
3.85

11.46
7.86
68.23
4.97
1.72
5.76

7.55
7.61
71.37
3.47
1.64
8.36

74.13

75.27

75.44

76.37

76.42

76.90

74.36

73.50

36.78
2.22
17.51
4.15
1.97
12.04

31.43
2.15
23.46
3.54
1.99
11.56

27.29
2.29
27.84
3.87
2.27
11.71

24.64
2.51
30.05
4.12
2.36
11.76

23.25
2.68
31.51
4.25
2.52
12.16

22.90
2.84
31.62
4.32
2.60
12.14

22.27
3.08
32.23
4.55
2.86
11.91

22.14
3.30
29.62
4.33
2.96
12.01

19.13
3.27
34.14
3.91
1.95
11.10

Net current operating earnings................................................

25.33

25.87

24.73

24.56

23.63

23.58

23.10

25.64

26.50

5.00
3.73
1.27

4.96
3.68
1.28

4.94
3.72
1.22

4.96
3.74
1.22

5.04
3.85
1.19

5.04
3.85
1.19

5.03
3.87
1.16

4.93
3.67
1.26

4.69
3.45
1.24

.10

.10

.08

.08

.07

.07

.09

.09

.09

.26
1.11
.91

.31
1.07
.86

.35
.95
.75

.35
.95
.72

.35
.91
.67

.35
.91
.66

.37
.88
.64

.33
1.02
.72

.44
.89
.64

.02

.03

Amounts per $100 of total assets2
C u rr e n t o p e ra tin g re v e n u e — t o t a l.......................................................
C u rr e n t o p e ra tin g e x p e n s e s — t o t a l....................................................
N e t c u r r e n t o p e ra tin g e a r n in g s ...........................................................
R e co ve rie s, t ra n s fe r s fro m v a lu a tio n re s e rv e s , a n d
p r o fits — t o t a l.............................................................................................
Losses, c h a rg e -o ffs , a n d t ra n s fe r s to v a lu a tio n
re s e rv e s — t o t a l........................................................................................
N e t in c o m e b e fo re re la te d t a x e s ........................................................
N e t in c o m e a fte r re la te d ta x e s ............................................................

Memoranda
R e co v e rie s c re d ite d to v a lu a tio n re s e rv e s (n o t in c lu d e d
in re c o v e rie s a b o ve ):
On s e c u ritie s
.....................................................................................
On lo a n s .....................................................................................................
L osse s c h a rg e d to v a lu a tio n re s e rv e s ( n o t in c lu d e d
in lo sse s a b o v e ):
On s e c u ritie s
.....................................................................................
On lo a n s .....................................................................................................




(3
)

(3
)

(3
)
.06

.09

(3
)

(3
)
.04

.05

.05

.15

.01
.17

.01
.16

(3
)
.13

(3
)

.05

(3
)

(3
)

(3
)

.06

.03

.03

.01
.17

.02
.13

.02
.12

CORPORATION

74.67

S a la rie s, w a ges, a n d f e e s ...................................................................
O ffic e r a n d e m p lo y e e b e n e fits ........................................................
In te re s t on tim e a n d sa v in g s d e p o s it s ........................................
O c c u p a n c y e x p e n s e o f b a n k p re m is e s — n e t ............................
F u rn itu re a n d e q u ip m e n t ...................................................................
O th e r c u r r e n t o p e ra tin g e x p e n s e s .................................................

INSURANCE

Current operating expenses—to ta l...........................................

DEPOSIT

Amounts per $100 of current operating revenue
Current operating revenue—to ta l.............................................

FEDERAL

Less
than
-$1,000,000

$2,000,000
to
$5,000,000

Amounts per $100 of total capital accounts2
N e t c u r re n t o p e ra tin g e a r n in g s ............................................
R e co ve rie s, tra n s fe r s fr o m v a lu a tio n re s e rv e s , and
p r o fits — t o t a l..............................................................................
Losses, c h a rg e -o ffs , a n d t ra n s fe r s to v a lu a tio n
re s e rv e s — t o t a l..........................................................................
N e t in c o m e b e fo re re la te d ta x e s .........................................
T a xe s on n e t in c o m e .................................................................
N e t in c o m e a fte r t a x e s .............................................................
Cash d iv id e n d s d e c la r e d .........................................................
N e t a d d itio n s to c a p ita l fro m in c o m e .................................

10.02

11.6

14.44

15.33

15.86

15.74

16.56

15.88

.93

12.89

.90

.97

1.18

1.12

1.15

4.18
11.19
2.70
8.49
2.71
5.78

4.57

4.62
12.21
3.36
S. 85
3.47
5.38

4.98
11.94
3.23
8.71
3.71
5.00

4.37
13.31
3.90
9.41
4.44
4.97

5.64
11.39
3.28

.92
2.09
8.79
1.62
7.17
5.09

2.89
9.71
1.84
7.87
2.48
5.39

.15

.26

2.0

3.69

10.00
2.11
7.89
2.38
5.51

11.66
3.05
8.61
2.98
5.63

8.11
4.85
3.26

Memoranda

(3
)

(3
)

.01

.01

.69

.04
.64

.02

.59

.81

.44

.32

.16

.01

.01

.02

.78

1.36

.03
1.79

.07
2.23

2.10

.17
2.25

.24
1.72

.25
1.54

O
F

.47

INCOME

R e co ve rie s c re d ite d to re s e rv e a c c o u n ts (n o t in c lu d e d
in re c o v e rie s a b o ve ):
On s e c u r itie s ...................................................................................
On lo a n s ............................................................................................
Losse s c h a rg e d to re s e rv e a c c o u n ts ( n o t in c lu d e d
in lo sse s a b o ve ):
On s e c u r itie s ...................................................................................
On lo a n s ............................................................................................

Special ratios2
6 .6 6

6.50

6.44

6.38

6.26

6.26

6.16

5.90

4.26
2.51
.38
3.21

4.31
2.67
.42
3.25

4.33
2.61
.55
3.29

4.35
2.73
3.34

4.36
2.90
.75
3.43

4.37
3.02
.71
3.52

4.28
3.07
.62
3.60

4.22
3.11
.49
3.69

3.80
3.47
.34
4.41

Occupancy expense of bank premises per $100
of current operating revenue
Occupancy expense of bank premises, net—to ta l...........

4.15

3.54

3.87

4.12

4.25

4.32

4.55
1.10
5.65

4.33

R e n ta l a n d o th e r in c o m e ...............................................................

Occupancy expense of bank premises, gross—total ......
S a la rie s a n d w a g e s— b u ild in g d e p a rtm e n t o ffic e rs
an d e m p lo y e e s ...........................................................................
B u ild in g d e p a rtm e n t p e rs o n n e l b e n e fits ...........................
R e c u rrin g d e p r e c ia tio n ...............................................................
M a in te n a n c e an d r e p a ir s ...........................................................
In s u ra n c e a n d u t ilit ie s ................................................................
R e n ts p a id ........................................................................................
T a x e s ..................................................................................................
N u m b e r o f banks, D ecem ber 3 1 .

.23

.24

.29

.32

.45

.77

3.78

4.16

4.44

4.70

5.09

.24

.28

.39

.48
.04
.97
.56
.90
.98
.77

.57
.06
.99
.65
.85
1.18
.79

.59
.06
.97
.73
.85
1.65

2,447

751

351

4.3!
.01

.01

.55
.66
1.83
.37
.72

.67
.54
1.30
.36
.62

1.10
.60
.69

.44
.03
.97
.53
.97
.79
.71

433

1,624

4,154

3,265

.02
.86
.50




.98

4.89

1.00
.66
.86

.67
.09

.47
.07
.51

1.63
.79

1.53
.67

320

167

1 This group of banks is the same as the group shown in Table 114 under the heading “ Operating throughout the year."
2 For asset and liability data, see Table 108, p. 151.
3 Less than .005.
Back figures, 1941-1965: See the Annual Report for 1965, pp. 162-163, and earlier reports.

3.91

1.37

5.70

BANKS

7.01

INSURED

In c o m e on lo a n s p e r $ 1 0 0 o f lo a n s ..........................................
In c o m e on U.S. G o v e rn m e n t o b lig a tio n s p e r $ 1 0 0 o f
U.S. G o v e rn m e n t o b lig a tio n s ...................................................
In c o m e on o th e r s e c u ritie s p e r $ 1 0 0 o f o th e r s e c u ritie s .
S e rvice c h a rg e s p e r $ 1 0 0 o f d e m a n d d e p o s its ...................
In te r e s t p aid p e r $ 1 0 0 o f tim e a n d s a v in g s d e p o s its .......

T a b le 1 1 7 .

INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), BY STATE, 1966

To ta l
U n ite d
S ta te s

In c o m e ite m

O th e r areas
P u erto
Rico

50 S tates
and
D.C.

V irg in
Is la n d s

A la b a m a

168

(A m o u n ts in th o u s a n d s of d o lla rs )

A laska

A riz o n a

A rk a n s a s

C a lifo rn ia

C o lo ra d o

C o n n e c ti­
cut

191,904

23,424

144,772

110,775

2,303,949

184,814

227,010

43

2,313,537
1,529,184
13,000,401
239,204
912,392
351,782
756,102
346,730

31,760
16,355
121,475
1,409
11,665
3,851
3,835
1,554

2,625
1,355
15,102
1,472
1,923
725
116
106

10,571
9,367
102,303
3,082
10,503
3,601
3,333
2,012

15,560
10,537
73,374
320
6,162
2,710
1,138
974

176,485
161,522
1,614,259
53,177
146,305
39,645
63,483
49,073

21,536
9,517
121,334
2,689
14,596
3,445
7,871
3,826

18,349
16,013
151,663
2,220
13,413
4,196
18,828
2,328

14,561,852

47,103

1,537

14,513,212

134,738

18,632

117,477

81,170

1,841,348

143,417

166,683

1,526,300
2,569,442
598,768
83,791
6,259,472
301,768
802,060
458,695
1,961,556

5,142
10,415
1,881
191
16,415
353
3,083
1,403
8,220

172
363
56
9
604
22
42
40
229

1,520,986
2,558,664
596,831
83,591
6,242,453
301,393
798,935
457,252
1,953,107

18,572
25,552
5,565
1,157
50,079
516
6,552
5,310
21,435

2,796
4,320
664
66
5,871
90
1,301
912
2,612

12,985
23,658
4,530
196
46,386
410
7,933
4,924
16,455

12,734
13,329
2,941
1,200
29,269
490
4,675
3,093
13,439

179,079
325,452
67,592
1,655
892,459
31,924
102,962
55,027
185,198

18,181
25,459
5,422
1,207
53,374
1,147
9,581
6,458
22,588

20,360
37,010
9,220
1,007
53,716
839
11,624
7,283
25,624

4,946,562

9,939

503

4,936,120

57,166

4,792

27,295

29,605

462,601

41,397

60,327

341,711

1,207

8

340,496

1,859

523

716

1,542

22,716

3,064

3,054

62,464
5,077
100,950

717

61,747
5,077
100,950

738
10
172

29

49
61
168

510
16
60

10,023
17
1,868

458
39
1,286

459
26
399

15 585
55,762
101,873

123
164
203

8

15,462
55,598
101,662

231
143
565

11
483

26
412

379
246
331

1,187
968
8,653

275
112
894

15
480
1,675

1,574,027

2,994

53

1,570,980

15,813

2,697

12,935

7,799

157,973

13,374

14,983

454,515
10,198
78,932

4,055
242
173

919

2,734
463

883
116
24

30,670
157
15,197

3,553
198
98

2,881
8
558

Current operating expenses—total
S a la rie s —o f fic e r s ....................................................
S a la rie s a n d w a g e s— o th e r e m p lo y e e s .........
O ffic e r a n d e m p lo y e e b e n e fits .........................
Fees p aid to d ire c to rs a n d c o m m itte e s ........
I n te r e s t on tim e a n d s a vin g s d e p o s its .........
In te r e s t on b o rro w e d m o n e y ............................
O c c u p a n c y e x p e n se o f b a n k p re m is e s — n e t.
F u rn itu re a n d e q u ip m e n t...................................
O th e r c u r re n t o p e ra tin g e x p e n s e s .................

Net current operating earnings
Recoveries, transfers from valuation re­
serves, and profits—to ta l..........................
On s e c u ritie s :
P ro fits on s e c u ritie s s o ld o r r e d e e m e d . ..
R e coveries
•••
T ra n s fe rs fro m v a lu a tio n re s e rv e s
On lo ans:
R e coveries
T ra n s fe rs fr o m v a lu a tio n re s e rv e s
..
All o t h e r ......................................................................

Losses, charge-offs, and transfers to valu­
ation reserves—to ta l..................................
On s e c u ritie s :
Losses on s e c u ritie s sold
P h arcro.riffc r^rinr to
1
P
T ra n s fe rs to v a lu a tio n re s e rv e s
On lo ans:

454,911
10,198
78,932

396

T ra n s fe rs to v a lu a tio n r e s e r v e s ...................
All o t h e r ......................................................................

31,251
775,792
222,943

542
1,740
316

48
5

30,709
774,004
222,622

336
9,335
1,672

160
1,464
154

8,954
784

646
4,875
1,255

2,177
89,065
20,707

986
7,226
1,313

54
8,042
3,440

Net income before related taxes....................

3,714,246

8,152

458

3,705,636

43,212

2,618

15,076

23,348

327,344

31,087

48,398




........

CORPORATION

19,449,332

293
27
1,417
156
29
75

INSURANCE

2,040

3,964
2,306
40,939
4,283
2,628
2,179
28
715

DEPOSIT

57,042

In te re s t on U. S. G o v e rn m e n t o b lig a tio n s . ..
2,317,794
In te re s t a n d d iv id e n d s on o th e r s e c u r it ie s . . 1,531,517
In te re s t a n d d is c o u n t on lo a n s ........................ 13,042,757
243,643
S e rvice c h a rg e s an d fe e s on lo a n s ................
915,049
S e rvice c h a rg e s on d e p o s it a c c o u n ts ...........
354,036
O th e r c h a rg e s , c o m m is s io n s , fe e s , e tc ........
756,130
347,488
O th e r c u r re n t o p e ra tin g r e v e n u e ....................

FEDERAL

Current operating revenue—to ta l.................... 19,508,414

Taxes on net income—to ta l.............................

1,029,906

-6

F e d e ra l........................................................................
S ta te .............................................................................

257

1,029,655

13,858

341

3,593

5.385

911,585
118,321

67
-7 3

101,026

9,015

257

911,261
118,394

11,880
1,978

337
4

16,177

3,218
375

5.385

68,111
32,915

7,349
1,666

11,705
4,472

Net income after related taxes.......................

2,684,340

8,158

201

2,675,981

29,354

2,277

11,483

17,963

226,318

22,072

32,221

Dividends and interest on capital—to ta l........

1,307,387

3,568

1,303,819

11,496

566

7,878

C ash d iv id e n d s d e c la re d on c o m m o n s to c k .
D iv id e n d s d e c la re d on p r e fe rr e d s to c k and
in te r e s t on c a p ita l n o te s a n d d e b e n tu re s .

5,376

139,503

1,240,048

2,953

10,329

1,237,095

11,494

16,622

566

7,415

5,327

129,505

10,054

16,029

67,339

615

66,724

2

463

49

9,998

275

593

Net additions to capital from incom e............

1,376,953

4,590

201

1,372,162

17,858

1,711

3,605

12,587

86,815

11,743

15,599

N u m b e r o f b a n k in g e m p lo y e e s (e x c lu s iv e o f
b u ild in g e m p lo y e e s ), D e c e m b e r 3 1 :
A c tiv e o f fic e r s ..........................................................
O th e r e m p lo y e e s ....................................................

137,803
606,120

603
2,769

13
92

137,187
603,259

1,853
7,108

176
802

1,172
5,552

1,421
3,840

16,274
67,544

1,576
6,076

1,592
8,195

535

44

3,300
143,280

6
2,568

370

1,733

1
1,057

176
17,473

1,768

12
1,411

60,282
545,647

1,124

52

60,282
544,471

178
7,910

2,065

9,031

170
3,049

14,744
80,713

6,553

1,362
5,146

Occupancy expense of
bank premises
Occupancy expense of bank premises, n e t total ..............................................................

802,060

3,083

42

798,935

6,552

1,301

7,933

4,675

102,962

R e nta l a n d o th e r in c o m e ........................................

11,624

536

6

9,581

178,384

177,842

816

207

995

Occupancy expense of bank premises,
gross—to ta l........................ ......................

612

11,556

3*219

1,542

980,444

3,619

48

976,777

7,368

1,508

8,928

5,287

114,518

12,800

82

6

13,166

O
F

3,300
143,859

INCOME

Memoranda
R e co ve rie s c re d ite d to v a lu a tio n re se rve s
( n o t in c lu d e d in re c o v e rie s a b o ve ):
On s e c u r itie s ............................................................
On lo a n s .....................................................................
Losses c h a rg e d to v a lu a tio n re s e rv e s (n o t
in c lu d e d in lo sse s a b o ve ):
On s e c u r itie s .............................................................
On lo a n s .....................................................................

2,953

23

368

38

25

97,881
12,528
177,848
111,752
167,268
268,767
141,432

194
27
389
504
477
1,474
539

97,687
12,501
177,453
111,245
166,786
267,261
140,891

774
66
1,354
785
1,435
2,597
334

44
3
245
379
377
281
179

533
83
1,649
909
1,874
3,019
779

630
72
1,522
501
1,023
770
763

4,203
664
14,280
17.628
15.629
47,858
13,888

1,110
121
1,608
1,334
1,774
5,418
1,397

1,151
155
2,240
1,365
2,619
3,748
1,863

N u m b e r o f b u ild in g e m p lo y e e s , D e c e m b e r
31:
O ffic e r s .......................................................................
O th e r e m p lo y e e s .....................................................

403
33,035

4
65

399
32,970

3
349

10

5
140

1
310

26
928

5
326

3
320

N u m b e r o f b a n k s , D e c e m b e r 3 1 ........................

13,541

8

13,532

267

10

17

243

187

215

63

N o te:

For average asset and liab ility data by State, see Table 109, pp. 152-153.
See the Annual Report for 1965, pp. 164-173, and earlier reports.

Back figures, 1946-1965:




6
3
5
32
2

1

169

15

BANKS

2,968

INSURED

S a la rie s — b u ild in g d e p a rtm e n t o f fic e r s ........
S a la rie s a n d w a g e s— b u ild in g d e p a rtm e n t
e m p lo y e e s ................................. ............................
B u ild in g d e p a rtm e n t p e rs o n n e l b e n e f it s . ..
R e c u rrin g d e p re c ia tio n ........................................
M a in te n a n c e a n d r e p a irs ....................................
In s u ra n c e an d u t ilit ie s .........................................
R e n ts p a id .................................................................
T a x e s .....................................................................

170

Table 117. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
BY STATE, 1966— CONTINUED
(A m o u n ts in th o u s a n d s of d o lla rs )

D e law are

D is tric t
of
C o lu m b ia

C u rren t operatin g reven u e— to t a l.......................

61,405

127,166

448,515

312,592

69,954

56,676

1,402,555

399,659

243,181

188,164

182,360

In te r e s t on U. S. G o v e rn m e n t o b lig a tio n s . .
In te r e s t a n d d iv id e n d s on o th e r s e c u ritie s .
In te r e s t a n d d is c o u n t on lo a n s ......................
S e rvice ch a rg e s a n d fe e s on lo a n s ..............
S e rvice c h a rg e s on d e p o s it a c c o u n ts .........
O th e r ch a rg e s , c o m m is s io n s , fe e s , e t c . . . .
T r u s t d e p a r t m e n t .................................................
O th e r c u r r e n t o p e ra tin g r e v e n u e ..................

11,174
3,159
33,270
915
1,496
576
9,462
1,353

22,368
4,075
82,821
1,915
6,819
1,123
7,067
978

77,840
39,411
260,793
7,695
32,846
9,306
13,277
7,347

34,740
18,615
203,758
6,942
21,665
13,340
10,014
3,518

5,842
4,468
49,848
2,892
2,466
2,514
866
1,058

6,461
3,268
38,936
784
4,885
1,322
387
633

216,551
123,238
887,493
11,114
42,613
16,429
67,494
37,623

79,290
25,173
250,300
3,640
16,735
9,411
10,419
4,691

47,186
18,646
153,624
923
12,157
5,012
3,408
2,225

36,279
15,080
117,231
890
11,634
3,366
1,872
1,812

34,309
13,434
115,374
1,792
6,970
2,067
6,336
2,078

36,623

85,903

346,410

232,796

52,912

41,752

1,028,692

294,266

179,906

129,802

126,795

5,529
8,944
1,963
271
10,627
113
2,140
1,745
5,291

9,374
16,895
2,628
596
32,984
1,414
5,473
3,179
13,360

41,396
66,315
12,178
3,104
128,418
4,129
18,888
16,174
55,808

29,085
45,104
11,168
2,287
76,171
4,688
14,823
8,778
40,692

5,140
10,026
3,032
257
20,230
697
3,040
3,287
7,203

5,774
7,865
1,877
190
15,623
228
2,070
1,935
6,190

99,931
159,201
41,899
6,182
482,295
33,384
46,720
28,889
130,191

36,676
52,091
11,379
2,768
112,023
4,759
16,225
10,493
47,852

33,465
26,100
6,330
1,495
69,641
831
9,052
6,039
26,953

25,204
20,045
4,704
1,705
46,452
694
6,651
4,477
19,870

18,871
22,630
5,168
1,583
45,267
717
6,883
4,451
21,225

24,782

41,263

102,105

79,796

17,042

14,924

373,863

105,393

63,275

58,362

55,565

1,281

1,100

5,093

919

157

39,749

6,688

3,417

2,572

2,912

258

781
42
116

371

1

2,259
7
158

37
3
31

3,347
660
17,267

1,522
48
2,085

870
147
8

584
27
179

415
35
409

14
3
824

340
752
2,605

223
660
1,786

3
40
505

73

682
239

13

745
5,765
11,965

324
854
1,855

384
459
1,549

889
233
660

377
892
784

4,370

6,092

32,079

22,003

4,279

3,691

127,956

33,748

15,781

14,083

13,584

1.504

369
28

4,593
137
212

2,748
79
1,164

926

208

1,502
2
21

54,749
985
11,878

6,869
356
2,588

3,396
222
156

2,258
376
114

1,580
301
967

24
2.504
129

37
4,862
796

2,322
21,368
3,447

321
14,296
3,395

2,873
480

230
1,813
123

1,315
45,636
13,393

687
19,284
3,964

544
8,691
2,772

1,580
7,777
1,978

897
7,475
2,364

21,693

36,271

74,662

62,886

13,682

11,390

285,656

78,333

50,911

46,851

44,893

In c o m e ite m

On s e c u ritie s :
P ro fits on s e c u ritie s sold o r re d e e m e d .
R e c o v e rie s .........................................................
T ra n s fe rs fro m v a lu a tio n re s e r v e s .........
On lo ans:
R e c o v e rie s .........................................................
T ra n s fe rs fro m v a lu a tio n r e s e r v e s .........
A ll o t h e r ..................................................................

Losses, charge-offs, and tra n s fe rs to v a lu ­
atio n reserves— to ta l........................................
On s e c u ritie s :
Losses on s e c u ritie s s o ld ..............................
C h a rg e -o ffs p rio r to s a le ................................
T ra n s fe rs to v a lu a tio n re s e r v e s .................
On lo ans:
Losses a n d c h a r g e - o ffs ..................................
T ra n s fe rs to v a lu a tio n re s e r v e s .................
All o t h e r ....................................................................

N e t incom e before re la ted taxes.




281
59

20

1

In d ia n a

Iowa

K a nsas

K e n tu c k y

CORPORATION

Recoveries, tra n s fe rs fro m va luation re
serves, and p ro fits— to ta l............................

Illin o is

Id a h o

INSURANCE

N e t c u rre n t operatin g earnings

H aw aii

DEPOSIT

S a la rie s — o f fic e r s ....................................................
S a la rie s a n d w a g e s— o th e r e m p lo y e e s .........
O ffic e r a n d e m p lo y e e b e n e fits .........................
Fees paid to d ire c to rs a n d c o m m itte e s ........
In te r e s t on tim e a n d sa v in g s d e p o s its .........
In te r e s t on b o rro w e d m o n e y .............................
O c c u p a n c y e x p e n s e o f b a n k p re m is e s n e t.
F u rn itu re a n d e q u ip m e n t ...................................
O th e r c u r r e n t o p e ra tin g e x p e n s e s .................

G eorgia

FEDERAL

C u rren t o peratin g expenses— to tal

Florida

Taxes on net income—to ta l.............................

8,297

15.444

17.745

18,026

4,601

4,318

80.807

F e d e ra l........................................................................
S ta te .............................................................................

22.741

7,732
565

12.890

13,077

15.444

17.745

18,026

13.853

3,856
745

3,523
795

80.807

22.741

12.890

11,929
1,148

13.853

Net income after related taxes.......................

13,396

20,827

56,917

44,860

9,081

7,072

204,849

55,592

38,021

33,774

31,040

Dividends and interest on capital—to ta l........

7.711

10,405

19,867

18,346

6,174

3,958

79,134

Cash d iv id e n d s d e c la re d on c o m m o n s to c k .
D iv id e n d s d e c la re d on p r e fe rre d s to c k and
in te r e s t on c a p ita l n o te s a n d d e b e n tu re s .

19,296

13,081

7.711

11,037

9,816

18,883

16,823

11,490

5,454

3,805

78,808

18,590

13,067

10,963

11,343

589

984

1,523

720

153

326

706

14

74

147

Net additions to capital from incom e............

5,685

10,422

37,050

26,514

2,907

3,114

125,715

36,296

24,940

22,737

19,550

N u m b e r o f b a n k in g e m p lo y e e s (e x c lu s iv e o f
b u ild in g e m p lo y e e s ), D e c e m b e r 3 1 :
A c tiv e o f fic e r s ..........................................................
O th e r e m p lo y e e s ....................................................

428
2,185

675
3,616

3,933
33,549

2,747
10,900

786
3,272

534
2,039

7,918
35,214

3,383
13,262

3,195
7,175

2,538
5,439

2,193
6,544

562

43
4,038

19
2,285

12
374

190

68
9,066

463
3,782

8
1,580

2
1,939

78
1,175

85
387

2,162

370
20,695

284
6,987

12
1,721

881

2,824
32,026

779
13,090

36
3,971

149
6,959

914
3,964

Occupancy expense of
bank premises
Occupancy expense of bank premises, n e tto ta l..............................................................

2,140

5,473

18,888

14,823

3,040

2,070

46,720

16,225

9,052

6,651

6,883

R e n ta l a n d o th e r in c o m e ........................................

270

1,178

5,797

2,427

977

366

Occupancy expense of bank premises,
gross—to ta l.................................................

8,692

3,543

1,339

1,417

1,368

2,410

6,651

24,685

17,250

4,017

2,436

55,412

8,068

8,251

79

33

54

1

10,391

S a la rie s— b u ild in g d e p a rtm e n t o f fic e r s ........
S a la rie s a n d w a g e s— b u ild in g d e p a rtm e n t
e m p lo y e e s .............................................................
B u ild in g d e p a rtm e n t p e rs o n n e l b e n e fits . . .
R e c u rrin g d e p re c ia tio n ........................................
M a in te n a n c e a n d r e p a irs ....................................
In s u ra n c e a n d u t ilit ie s .........................................
R e nts p a id .................................................................
T a x e s ...........................................................................

8

19,768

144

26

17

29

4

206
36
431
209
403
956
169

1,164
106
914
821
747
2,184
707

2,220
236
4,532
2,998
4,903
5,172
4,545

1,209
131
2,513
1,899
2,673
5,478
3,314

208
63
569
427
855
1,487
354

226
13
573
199
487
603
334

8,383
893
9,509
6,296
8,170
13,955
8,062

2,867
223
3,893
2,618
3,527
4,141
2,473

1,304
98
2,005
1,294
1,982
2,268
1,423

1,010
74
1,645
998
1,636
1,616
1,060

1,194
99
1,615
1,152
1,560
1,625
1,002

N u m b e r o f b u ild in g e m p lo y e e s , D e c e m b e r
31:
O ffic e r s .......................................................................
O th e r e m p lo y e e s ....................................................

73

1
318

16
706

5
472

4
83

1
90

81
2,767

2
1,071

6
785

7
506

7
581

N u m b e r o f b a n k s , D e c e m b e r 3 1 ........................

20

14

444

394

7

25

1,053

415

661

599

342

O
F

95

INCOME

Memoranda
R e co ve rie s c re d ite d to v a lu a tio n re s e rv e s
( n o t in c lu d e d in re c o v e rie s a b o v e ):
On s e c u r itie s ............................................................
On lo a n s .....................................................................
Losses c h a rg e d to v a lu a tio n re s e rv e s (n o t
in c lu d e d in lo sse s a b o ve ):
On s e c u ritie s .............................................................
On lo a n s .....................................................................

BANKS
171

reports.

INSURED

Note: For average asset and lia b ility data by State, see Table 109, pp. 152-153.
Back figures, 1946-1965: See the Annual Report for 1965, pp. 164-173, and earlier



Table 117. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
172

BY STATE, 1966— CONTINUED
(A m ounts in th o u s a n d s o f d o lla rs )

In c o m e ite m

L o u is ia n a

M aine

M aryland

M assa­
c h u s e tts

M ic h ig a n

M in n e ­
sota

M is ­
s is s ip p i

M is s o u ri

M o n ta n a

N e b ra ska

N e vada

471,059

833,059

361,646

120,794

451,463

68,141

132,330

46,591

26,856
13,282
138,993
4,304
14,624
3,677
4,245
2,608

38,340
27,424
314,857
4,380
27,206
18,244
29,780
10,828

112,382
69,941
564,445
11,841
31,332
13,757
22,398
6,963

56,496
29,555
222,531
2,621
19,435
17,643
9,966
3,399

17,672
12,523
75,480
492
7,264
4,706
1,180
1,477

74,153
38,476
291,752
2,967
17,367
6,655
11,950
8,143

10,775
4,668
43,651
1,033
4,721
1,883
690
720

19,711
8,268
89,003
545
7,530
2,824
2,676
1,773

5,785
3,315
30,384
1,384
3,197
545
1,237
744

Current operating expenses—to ta l.................

174,081

42,939

147,543

327,366

660,946

279,387

86,689

319,891

51,557

94,163

34,791

S a la rie s— o f fic e r s ....................................................
S a la rie s a n d w a g e s—o th e r e m p lo y e e s ..........
O ffic e r an d e m p lo y e e b e n e fits .........................
Fees p aid to d ire c to rs a n d c o m m itte e s ........
In te r e s t on tim e a n d s a v in g s d e p o s its .........
I n te r e s t on b o rro w e d m o n e y .............................
O c c u p a n c y e x p e n s e o f b a n k p re m is e s — n e t.
F u rn itu re an d e q u ip m e n t...................................
O th e r c u r re n t o p e ra tin g e x p e n s e s .................

20,780
30,853
6,219
2,230
59,916
3,249
11,438
6,389
33,007

4,986
8,641
1,778
438
15,560
397
2,724
1,537
6,878

14,410
32,257
6,119
1,125
51,226
2,078
9,922
6,040
24,366

36,476
79,570
18,014
1,684
88,903
11,369
23,186
13,598
54,566

47,228
110,139
24,051
2,728
340,313
6,628
32,015
17,016
80,828

38,084
39,953
10,267
2,348
122,281
5,719
12,859
8,286
39,590

13,006
15,130
3,980
1,128
29,107
977
3,605
3,462
16,294

39,275
55,024
11,005
2,900
127,070
9,034
15,857
10,720
49,006

7,983
7,551
2,279
415
18,969
464
2,416
1,614
9,866

19,351
14,796
4,210
1,269
29,717
900
4,651
4,186
15,083

4,302
6,734
874
100
13,331
80
2,850
1,506
5,014

Net current operating earnings......................

65,665

12,578

61,046

143,693

172,113

82,259

34,105

131,572

16,584

38,167

11,800

Recoveries, transfers from valuation re­
serves, and profits—to ta l..........................

8,232

502

4,453

6,379

14,600

4,410

3,929

15,917

2,913

2,989

431

On s e c u ritie s :
P ro fits on s e c u ritie s sold o r re d e e m e d . . .
R e coveries
T ra n s fe rs fro m v a lu a tio n re s e rv e s
On lo ans:
R e coveries
T ra n s fe rs fro m v a lu a tio n r e s e rv e s .............
All o t h e r ......................................................................

962
19
993

112
4
55

344
39
153

833
73
1,168

1,087
15
8,963

609
850
556

316
430
1,002

1,708
37
6,360

138
300
379

315
592
1,179

48

299
671
5,288

46
17
268

69
455
3,393

185
542
3,578

179
796
3,560

513
131
1,751

356
1,250
575

578
2,606
4,628

270
1,203
623

255
259
389

383

Losses, charge-offs, and transfers to valu­
ation reserves—to ta l..................................

18,298

4,175

15,928

39,128

65,717

24,634

14,653

37,374

4,839

11,193

3,256

6,489
31
4,876

25,418
110
371

9,105
300
205

966
1,097
2,568

10,125
1,127
2,376

1,464
294
350

3,460
647
249

344

On s e c u ritie s :
Losses on s e c u ritie s s o ld ................................
C h a rg e -o ffs p rio r to s a le .................................
T ra n s fe rs to v a lu a tio n re s e rv e s
On lo ans:
Losses and c h a rg e -o ffs
T ra n s fe rs to v a lu a tio n re s e r v e s ...................
All o t h e r ......................................................................

1,699
289
1,448

1,447
23
156

2,786
91
1,365

648
11,569
2,645

24
1,910
615

140
9,535
2,011

241
21,395
6,096

320
35,715
3,783

852
11,463
2,709

508
7,949
1,565

1,594
17,263
4,889

371
1,756
604

380
4,758
1,699

2,406
506

Net income before related taxes....................

55,599

8,905

49,571

110,944

120,996

62,035

23,381

110,115

14,658

29,963

8,975




CORPORATION

208,589

6,015
4,343
38,097
571
3,314
608
2,071
498

INSURANCE

55,517

42,769
19,119
150,404
1,975
13,284
7,542
1,818
2,835

DEPOSIT

239,746

In te r e s t on U. S. G o v e rn m e n t o b lig a tio n s . ..
In te r e s t a n d d iv id e n d s on o th e r s e c u r itie s ..
In te r e s t a n d d is c o u n t on lo a n s ........................
S e rvice c h a rg e s a n d fe e s on lo a n s ................
S e rvice c h a rg e s on d e p o s it a c c o u n ts ...........
O th e r ch a rg e s , c o m m is s io n s , fe e s , e tc .........
T r u s t d e p a r tm e n t...................................................
O th e r c u r re n t o p e ra tin g r e v e n u e ....................

FEDERAL

Current operating revenue—to ta l....................

Taxes on net income—to ta l.............................
F e d e ra l..............................................................
S tate .............................................................................

15.032

1.955

16.526

43,400

15.006

18,508

5.131

15.032

30,854

1.955

4,306

8.299

16.526

34,172
9,228

2.683

15.006

12,566
5,942

5.131

28,629
2,225

3,943
363

8.299

2.683

Net income after related taxes.......................

40,567

6,950

33,045

67,544

105,990

43,527

18,250

79,261

10,352

21,664

6,292

Dividends and interest on capital—to ta l.........

13,161

Cash d iv id e n d s d e c la re d on c o m m o n s to c k .
D iv id e n d s d e c la re d on p r e fe rr e d s to c k an d
in te r e s t on c a p ita l n o te s a n d d e b e n tu re s .

3,658

13,485

36,144

42,115

19,560

7,155

12,622

27,764

3,581

6.158

8,762

13,062

3,463

36,135

38,742

19,395

6,891

26,381

6.158

8,614

3,339

539

77

423

9

3,373

165

264

1,383

Net additions to capital from incom e............

27,406

3,292

19,560

31,400

63,875

23,967

11,095

51,497

N u m b e r o f b a n k in g e m p lo y e e s (e x c lu s iv e o f
b u ild in g e m p lo y e e s ), D e c e m b e r 3 1 :
A c tiv e o f fic e r s ..........................................................
O th e r e m p lo y e e s .....................................................

1,963
7,842

531
2,390

1,418
8,084

3,037
18,604

3,883
25,996

3,688
10,484

1,294
4,074

19
511

4
6,729

16

603

247
4.991

20

1,895

1,544

161
6,639

294
1,164

146
3,705

5,592
16.991

419
20,423

10

Occupancy expense of
bank premises
Occupancy expense of bank premises, n e t to ta l..............................................................

11,438

R e nta l a n d o th e r in c o m e .........................................

124

4,194

12,902

2,829

3,800
14,191

749
1,973

1,974
4,098

422
1,640

80
2,203

2

1,100

4,253

1,690

36
407

5,360

1,323
3,708

1,579
8,784

3,534

65
3,423

65
1,906

2,850

Memoranda

O
F

23,186

32,015

12,859

3,605

15,857

562

2,416

4,651

1,352

3,642

3,778

4,594

1,921

3,612

690

1,284

590

14,182

3,286

11,274

S a la rie s — b u ild in g d e p a rtm e n t o ffic e rs
S a la rie s a n d w a g e s— b u ild in g d e p a rtm e n t
e m p lo y e e s .............................................................
B u ild in g d e p a rtm e n t p e rs o n n e l b e n e fits . ..
R e c u rrin g d e p re c ia tio n ........................................
M a in te n a n c e a n d r e p a irs ....................................
In s u ra n c e a n d u t ilit ie s .........................................
R e n ts p a id .................................................................
T a x e s ...........................................................................

26,828

35,793

17,453

5,526

51

19,469

5

3,106

5,935

3,440

13

174

170

19

1

50

20

11

2,095
173
2,182
1,522
2,008
3,085
3,066

485
41
603
312
543
827
470

629
108
2,284
1,545
2,005
3,633
1,057

2,583
446
4,253
2,740
4,810
6,786
5,036

4,664
652
6,882
4,909
6,334
7,535
4,647

1,404
104
2,572
1,803
3.483
5,585
2.483

547
71
895
860
1,144
803
1,205

2,305
309
4,784
3,064
3,502
3,573
1,882

403
46
598
336
543
486
694

732
89
1,036
629
993
1,589
847

306
26
733
376
626
919
443

N u m b e r o f b u ild in g e m p lo y e e s , D e c e m b e r
31:
O ffic e r s .......................................................................
O th e r e m p lo y e e s .....................................................

7
707

1

19
1,455

2

20

7

287

16
814

2

241

1

701

265

919

173

423

77

N u m b e r o f b a n k s , D e c e m b e r 3 1 ........................

219

41

121

157

345

719

190

652

131

433

9

Note: For average asset and liab ility data by State, see Table 109, pp. 152-153.
Bach figures, 1946-1965: See the Annual Report for 1965, pp. 164-173, and earlier



reports.

173

9,922

2,744

BANKS

2,724

Occupancy expense of bank premises,
gross—to ta l.................................................

INSURED

R e co ve rie s c re d ite d to v a lu a tio n re s e rv e s
(n o t in c lu d e d in re c o v e rie s a b o ve ):
On s e c u r itie s .............................................................
On lo a n s .....................................................................
Losses c h a rg e d to v a lu a tio n re s e rv e s (n o t
in c lu d e d in lo sse s a b o ve ):
On s e c u r itie s .............................................................
On lo a n s .....................................................................

INCOME

148

174

Table 117. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
BY STATE, 1966— CONTINUED
(A m ounts in th o u s a n d s o f d o lla rs )

In c o m e ite m

New
H a m p s h ire

New
J ersey

New
M exico

New
York

N o rth
C a rolina

N o rth
D akota

O hio

O kla h o m a

O regon

P e n n s y l­
vania

R hode
Isla n d

3,663,835

280,635

57,317

871,823

211,027

178,711

1,192,701

77,457

8,483
3,209
40,758
520
4,435
1,698
807
627

268,058
298,114
2,566,600
35,854
97,194
47,290
239,159
111,566

26,992
23,415
184,539
7,078
16,122
10,789
8,582
3,118

11,556
5,652
32,922
352
2,851
3,072
391
521

129,030
76,403
570,587
6,611
38,518
10,901
31,460
8,313

33,231
14,956
139,000
1,495
13,601
3,497
2,946
2,301

18,813
12,474
120,904
2,500
15,486
2,185
4,304
2,045

135,102
98,492
810,608
11,383
35,982
12,604
68,133
20,397

5,199
8,150
52,959
644
3,324
1,223
5,391
567

Current operating expenses—to ta l.................

29,270

450,105

45,947

2,687,119

209,357

43,226

636,163

151,833

142,561

877,301

57,230

S a la rie s —o f fic e r s ....................................................
S a la rie s an d w a g e s— o th e r e m p lo y e e s .........
O ffic e r a n d e m p lo y e e b e n e fits .........................
Fees p aid to d ire c to r s an d c o m m itte e s ........
In te r e s t on tim e a n d s a v in g s d e p o s its .........
In te r e s t on b o rro w e d m o n e y ............................
O c c u p a n c y e x p e n s e o f b a n k p re m is e s -net.
F u rn itu re a n d e q u ip m e n t ...................................
O th e r c u r re n t o p e ra tin g e x p e n s e s .................

3,721
4,921
1,135
368
11,442
131
1,590
1,063
4,899

42,730
86,582
20,166
3,287
184,895
5,094
27,539
15,465
64,347

6,729
9,215
1,481
429
14,193
355
2,981
2,097
8,467

187,528
481,871
130,876
5,596
1,265,058
109,359
160,627
56,503
289,701

27,665
41,229
8,616
1,044
79,315
2,303
11,814
7,656
29,715

7,062
5,303
1,622
472
19,566
144
2,072
1,148
5,837

56,376
109,393
22,049
3,566
291,850
5,825
28,066
17,816
101,222

26,104
24,911
5,878
1,501
53,639
3,029
8,048
5,848
22,875

18,137
25,378
4,754
316
64,426
990
7,626
4,759
16,175

79,537
151,187
39,147
6,419
390,949
13,850
45,735
29,244
121,233

4,422
10,078
2,872
252
28,036
653
2,768
1,685
6,464

Net current operating earnings......................

9,679

133,106

14,590

976,716

71,278

14,091

235,660

59,194

36,150

315,400

20,227

Recoveries, transfers from valuation re­
serves, and profits—to ta l..........................

738

7,428

1,117

30,825

5,264

716

17,861

3,672

1,199

62,267

1,721

377
3
53

2,424
157
1,578

154
6
1

8,633
261
5,760

862
6
646

179
119

1,747
65
7,964

1,396
95
380

197

3,463
296
33,715

580

22
36
247

128
2,019
1,122

84
116
756

445
4,229
11,497

42
599
3,109

99
93
226

456
3,724
3,905

975
358
468

74
6
922

864
17,135
6,794

5
850
202

2,832

On s e c u ritie s :
P ro fits on s e c u ritie s sold o r r e d e e m e d . . .
R e co ve rie s
T ra n s fe rs fro m v a lu a tio n re s e rv e s
On lo ans:
R e c o v e rie s .............................................................
T ra n s fe rs fro m v a lu a tio n r e s e r v e s .............
A ll o t h e r ......................................................................

Losses, charge-offs, and transfers to valu­
ation reserves—to ta l..................................

84

34,531

4,928

336,125

22,395

3,281

65,535

16,132

10,226

145,247

7,648

On s e c u ritie s :
Losses o n s e c u ritie s s o ld ................................
C h a rg e -o ffs p rio r to sale
T ra n s fe rs to v a lu a tio n re s e rv e s
On lo a n s:
Losses an d c h a rg e -o ffs ....................................
T ra n s fe rs to v a lu a tio n re s e rv e s ...................
A ll o t h e r ......................................................................

652
81
1

10,822
66
1,872

1,272
24
12

156,526
491
3,894

6,543
88
1,828

1,464
75
12

20,042
253
7,607

2,643
132
291

2,095

18,171
268
5,483

3,150
4
170

57
1,710
331

299
17,119
4,353

147
2,868
605

336
159,269
15,609

136
9,900
3,900

103
1,079
548

687
32,070
4,876

2,069
9,664
1,333

250
6,285
1,596

1,024
40,000
80,301

53
3,395
876

Net income before related taxes....................

7,585

106,003

10,779

671,416

54,147

11,526

187,986

46,734

27,123

232,420

14,300




i-

CORPORATION

60,537

64,280
61,015
387,322
6,621
31,812
7,330
18,791
6,040

INSURANCE

583,211

3,704
2,144
28,314
337
2,707
580
631
532

DEPOSIT

38,949

I n te r e s t on U .S . G o v e rn m e n t o b lig a tio n s . ..
I n te r e s t a n d d iv id e n d s on o th e r s e c u r it ie s . .
In te r e s t a n d d is c o u n t on lo a n s ........................
S e rv ic e c h a rg e s a n d fe e s on lo a n s ................
S e rv ic e c h a rg e s on d e p o s it a c c o u n ts ...........
O th e r ch a rg e s , c o m m is s io n s , fe e s , e tc ........
T r u s t d e p a r t m e n t ...................................................
O th e r c u r re n t o p e ra tin g r e v e n u e ....................

FEDERAL

Current operating revenue—to ta l....................

Taxes on net income—to ta l.............................

2.372

20.548

F e d e ra l........................................................................
S ta te .............................................................................

3.233

170,765

14,346

2,875

49.894

13,874

2.372

20.548

7,876

62.269

3.233

127,276
43,489

12,825
1,521

2,885

2,565
310

49.894

12,643
1,231

5,473
2,403

62.269

2,123
762

Net income after related taxes.......................

5,213

85,455

7,546

500,651

39,801

8,651

138,092

32,860

19,247

170,151

11,415

Dividends and interest on capital—to ta l........

1.928

38,166

3,349

316,957

16,488

C ash d iv id e n d s d e c la re d on c o m m o n s to c k .
D iv id e n d s d e c la re d on p re fe rre d s to c k and
in te re s t on c a p ita l n o te s a n d d e b e n tu re s .

3.518

57,235

16,186

1.928

10,523

99,742

35,936

283,510

6,006

3,258

15,062

3.518

57,011

15,300

10,483

98,123

6,006

2,230

91

33,447

1,426

224

886

40

1,619

Net additions to capital from incom e............

3,285

47,289

4,197

183,694

23,313

5,133

80,857

16,674

8,724

70,409

5,409

N u m b e r o f b a n k in g e m p lo y e e s (e x c lu s iv e o f
b u ild in g e m p lo y e e s ), D e c e m b e r 3 1 :
A c tiv e o f fic e r s ..........................................................
O th e r e m p lo y e e s .....................................................

371
1,325

3,619
19,715

633
2,359

12,816
86,538

2,626
11,790

769
1,546

4,810
25,974

2,570
6,652

1,836
5,957

7,238
35,496

374
2,492

4
3,296

1,759

410
16,951

181
876

324

780
5,084

12
3,466

666

83
6,024

1
259

48
742

611
13,059

4,505

6,533
102,549

665
3,798

666

3,902
16,488

36
9,082

2,952

7,712
25,749

48
1,159

Occupancy expense of
bank premises
Occupancy expense of bank premises, n e t total ..............................................................

2,768

O
F

7
313

INCOME

Memoranda
R e co v e rie s c re d ite d to v a lu a tio n re s e rv e s
( n o t in c lu d e d in re c o v e rie s a b o v e ):
On s e c u r itie s .............................................................
On lo a n s .....................................................................
Losse s c h a rg e d to v a lu a tio n re s e rv e s (n o t
in c lu d e d in lo sse s a b o ve ):
On s e c u r itie s .............................................................
On lo a n s ......................................................................

160,627

11,814

2,072

28,066

8,048

7,626

45,735

517

31,402

2,257

415

13,105

3,903

385

7,181

1,649

1,774

30,701

3,498

192,029

14,071

2,487

41,171

S a la rie s — b u ild in g d e p a rtm e n t o ffic e rs
S a la rie s a n d w a g e s — b u ild in g d e p a rtm e n t
e m p lo y e e s .............................................................
B u ild in g d e p a rtm e n t p e rs o n n e l b e n e fits . . .
R e c u rrin g d e p re c ia tio n ........................................
M a in te n a n c e a n d r e p a ir s ....................................
In s u ra n c e a n d u t ilit ie s .........................................
R e n ts p a id .................................................................
T a x e s ...........................................................................

11,951

1

8,011

31

52,916

4,417

4

473

42

4

159

24

89

187

49

187
16
328
160
300
465
317

3,156
460
5,442
4,639
4,739
6,482
5,752

455
60
735
365
544
960
375

13,996
2,557
37,226
15,588
35,029
58,435
28,725

1,291
112
2,777
1,625
2,519
4,563
1,142

284
25
600
185
589
410
390

6,612
782
7,588
5,230
6,984
10,356
3,460

1,530
188
2,274
1,334
2,179
3,515
907

701
89
1,961
1,369
1,441
1,202
1,159

8,351
1,194
10,222
5,369
8,642
12,784
6,167

1,059
156
687
454
528
808
676

N u m b e r o f b u ild in g e m p lo y e e s , D e c e m b e r
31:
O ffic e r s ........................................................................
O th e r e m p lo y e e s .................................................

1
88

4
939

145

31
3,002

3
618

3
178

14
2,162

5
571

8
198

26
2,869

3
304

N u m b e r o f b a n k s , D e c e m b e r 3 1 ........................

72

229

64

311

136

164

536

419

49

536

9

Note:

For average asset and liab ility data by State, see Table 109, pp. 152-153.
Annual Report for 1965, pp. 164-173, and earlier reports.

Back figures, 1946-1965: See the



175

2,981

3,162

BANKS

27,539

184

INSURED

1,590

R e n ta l a n d o th e r in c o m e ........................................

Occupancy expense of bank premises,
gross—to ta l.................................................

Table 117. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
176

BY STATE, 1966— CONTINUED
(A m o u n ts in th o u s a n d s o f d o lla rs )

In c o m e ite m

S o u th
C a ro lin a

S o uth
D akota

T en n e s s e e

Texas

V e rm o n t

U tah

V irg in ia

W a s h in g ­
to n

W est
V irg in ia

W iscon sin

W yo m in g

953,226

85,745

35,190

319,763

246,782

103,742

355,821

32,907

38,712
22,504
189,766
3,362
10,357
5,149
5,463
2,009

118,014
78,322
649,505
10,039
49,753
14,183
20,803
12,607

7,625
7,230
57,970
1,710
6,265
2,576
1,890
479

3,967
2,371
25,375
373
1,889
254
667
294

37,089
22,413
219,040
5,929
17,614
6,041
9,060
2,577

25,406
16,463
162,966
4,001
21,003
6,709
7,211
3,023

23,037
7,604
63,976
903
3,349
1,560
2,222
1,091

64,736
30,607
225,462
2,346
14,599
6,079
8,301
3,691

5,502
1,730
21,981
322
1,941
856
288
287

Current operating expenses—to ta l.................

61,776

47,161

201,740

707,120

64,185

28,421

240,034

187,510

71,236

270,145

25,097

S a la rie s— o f fic e r s ....................................................
S a la rie s a n d w a g e s o th e r e m p lo y e e s .........
O ffic e r a n d e m p lo y e e b e n e fits .........................
Fees paid to d ire c to rs a n d c o m m itte e s ........
In te re s t on tim e a n d s a v in g s d e p o s its .........
In te r e s t on b o rro w e d m o n e y ............................
O ccu p a n cy e x p e n s e o f b a n k p r e m is e s —n e t.
F u rn itu re a n d e q u ip m e n t ...................................
O th e r c u r re n t o p e ra tin g e x p e n s e s .................

11,008
16,005
3,373
620
12,262
131
3,666
3,136
11,575

8,797
6,465
2,105
582
19,006
169
2,406
1,437
6,194

22,893
33,658
7,644
1,258
84,964
4,132
9,988
7,563
29,640

91,165
109,438
23,307
6,879
272,730
20,018
41,766
24,407
117,410

6,714
9,926
2,163
431
30,330
1,219
2,922
2,580
7,900

2,839
4,328
929
364
14,646
52
1,407
706
3,150

27,035
42,224
9,384
2,072
101,474
1,970
11,855
7,796
36,224

21,552
41,058
8,540
456
71,977
1,469
10,869
7,256
24,333

9,173
12,075
2,512
982
28,885
316
3,382
2,369
11,542

34,968
38,871
10,452
3,043
125,414
1,985
12,380
8,956
34,076

3,798
3,904
770
363
10,118
234
1,312
954
3,644

Net current operating earnings......................

28,554

17,330

75,582

246,106

21,560

6,769

79,729

59,272

32,506

85,676

7,810

Recoveries, transfers from valuation re­
serves, and profits—to ta l..........................

677

680

7,165

11,272

254

450

7,775

3,960

2,586

5,771

345

On s e c u ritie s :
P ro fits on s e c u ritie s sold o r r e d e e m e d . ..
R e co ve rie s
..................................
T ra n s fe rs fro m v a lu a tio n re s e rv e s
On lo ans:
R e c o v e rie s .............................................................
T ra n s fe rs fro m v a lu a tio n re s e r v e s .............
A ll o t h e r ......................................................................

194
20
98

105
111

4,083
47
523

2,118
175
728

43

667
23
3,235

848
26
516

931
15
16

3,556
129
55

72
23

16

151
2
13

39
91
235

52
87
325

271
757
1,484

3,006
2,352
2,893

55
10
130

17
38
229

198
238
3,414

92
1,697
781

158
256
1,210

43
627
1,361

108
24
118

Losses, charge-offs, and transfers to valu­
ation reserves—to ta l..................................

4,269

3,828

20,051

70,160

6,796

1,853

27,873

18,872

6,529

17,447

1,987

On s e c u ritie s :
Losses on s e c u ritie s s o ld ................................
C h a rg e -o ffs p rio r to s a le .................................
T ra n s fe rs to v a lu a tio n re s e r v e s ...................
On lo ans:
L osses a n d c h a r g e - o ffs ....................................
T ra n s fe rs to v a lu a tio n r e s e r v e s ...................
A ll o t h e r ......................................................................

471
29
164

1,671
32
7

6,816
670
506

9,094
485
4,903

2,741
13

540
21
10

6,092
45
3,470

6,227
4
640

1,001
52
161

6,671
160
51

319
16
37

106
2,850
649

114
1,432
572

591
9,059
2,409

6,165
42,698
6,815

172
3,318
552

10
1,159
113

319
14,755
3,192

187
9,412
2,402

251
4,190
874

93
9,220
1,252

146
1,293
176

Net income before related taxes....................

24,962

14,182

62,696

187,218

15,018

5,366

59,631

44,360

28,563

74,000

6,168




CORPORATION

277,322

13,097
4,175
39,532
337
3,379
3,006
567
398

INSURANCE

64,491

12,024
7,594
57,760
503
6,084
3,477
1,818
1,070

DEPOSIT

90,330

In te r e s t on U. S. G o v e rn m e n t o b lig a tio n s . ..
In te r e s t a n d d iv id e n d s on o th e r s e c u r it ie s . .
In te r e s t a n d d is c o u n t on lo a n s ........................
S e rvice c h a rg e s a n d fe e s on lo a n s ................
S e rvice c h a rg e s on d e p o s it a c c o u n ts ...........
O th e r c h a rg e s , c o m m is s io n s , fe e s , e tc ........
T r u s t d e p a r t m e n t ...................................................
O th e r c u r re n t o p e ra tin g re v e n u e ....................

FEDERAL

Current operating revenue—to ta l....................

Taxes on net income—to ta l.............................

8,853

4,164

18,721

51.785

3,824

1,265

15.346

14.721

10.056

25,012

2.077

F e d e ra l........................................................................
S ta te .............................................................................

8,260
593

3,759
405

18,355
366

51.785

3,384
440

1,115
150

15.346

14.721

10.056

20,709
4,303

2.077

Net income after related taxes.......................

16,109

10,018

43,975

135,433

11,194

4,101

44,285

29,639

18,507

48,988

4,091

Dividends and interest on capital—to ta l........

6,477

3,700

15,038

64,988

6,854

1,747

21,169

12,988

6,043

19,059

1,964

Cash d iv id e n d s d e c la re d on c o m m o n s to c k .
D iv id e n d s d e c la re d on p r e fe rre d s to c k and
in te r e s t on c a p ita l n o te s a n d d e b e n tu re s .

6,476

3,682

14,110

63,468

6,686

1,687

20,992

12,970

6,037

18,371

1,908

1

18

928

1,520

168

60

177

18

6

688

56

Net additions to capital from incom e............

9,632

6,318

28,937

70,445

4,340

2,354

23,116

16,651

12,464

29,929

2,127

N u m b e r o f b a n k in g e m p lo y e e s (e x c lu s iv e of
b u ild in g e m p lo y e e s ), D e c e m b e r 3 1 :
A ctive o f fic e r s ..........................................................
O th e r e m p lo y e e s ....................................................

1,107
4,685

930
1,993

2,485
9,076

8,600
27,562

682
2,761

315
1,145

3,643
10,484

2,016
9,418

985
3,149

3,243
10,507

366
947

INCOME

Memoranda

401

2
525

4
2,590

344
16,931

263

182

155
1,652

1,155

2
537

3
2,245

389

1,262

8
1,140

40
6,449

5,366
48,447

2,442

725

3,580
7,522

77
3,702

48
2,082

47
6,026

978

Occupancy expense of
bank premises
Occupancy expense of bank premises, n e ttotal ..............................................................

1,312

O
F

R e coveries c re d ite d to v a lu a tio n re se rve s
(n o t in c lu d e d in re c o v e rie s a b o ve ):
On s e c u ritie s ............................................................
On lo a n s .....................................................................
Losses c h a rg e d to v a lu a tio n re s e rv e s (n o t
in c lu d e d in lo sse s a bo ve):
On s e c u r itie s ............................................................
On lo a n s .....................................................................

41,766

2,922

1,407

11,855

10,869

3,382

12,380

3,106

30,708

1,145

165

1,783

1,031

857

2,785

252

4,037

2,795

13,094

72,474

4,067

1,572

13,638

11,900

4,239

15,165

1,564

S a la rie s— b u ild in g d e p a rtm e n t o f fic e r s ........
S a la rie s a n d w a g e s— b u ild in g d e p a rtm e n t
e m p lo y e e s .............................................................
B u ild in g d e p a rtm e n t p e rs o n n e l b e n e fits . . .
R e c u rrin g d e p re c ia tio n ........................................
M a in te n a n c e a n d r e p a ir s ....................................
In s u ra n c e a n d u t ilit ie s .........................................
R e nts p a id .................................................................
T a x e s ...........................................................................

1

3

45

209

13

1

10

68

23

62

4

356
50
940
598
952
899
241

331
42
402
253
638
626
500

1,635
162
3,179
1,453
2,261
2,034
2,325

6,902
681
13,984
6,721
12,443
13,666
17,868

523
40
838
356
634
1,168
495

211
21
288
125
248
476
202

1,834
209
2,428
1,213
2,655
4.229
1,060

939
165
3,280
2,184
2,022
2,078
1,164

681
68
960
481
791
637
598

1,898
209
2,965
1,465
2,670
3,321
2,575

166
14
430
170
313
150
317

N u m b e r o f b u ild in g e m p lo y e e s , D e ce m b e r
31:
O ffic e rs .......................................................................
O th e r e m p lo y e e s ....................................................

1
210

5
234

6
653

19
2,246

1
195

103

1
863

9
283

3
303

6
845

2
64

N u m b e r o f b a n k s , D e c e m b e r 3 1 ........................

124

166

294

1,137

55

47

251

94

189

588

69

Note: For average asset and liab ility data by State, see Table 109, pp. 152-153.
Back figures, 1946-1965: See the Annual Report for 1965, pp. 164-173, and earlier reports.



177

9,988

389

BANKS

2,406

371

INSURED

3,666

R e nta l a n d o th e r in c o m e ........................................

Occupancy expense of bank premises,
gross—to ta l.................................................

T a b l e 1 1 8 . INCOME OF INSURED MUTUAL SAVINGS BANKS, 1958-1966
(A m ounts in th o u s a n d s o f d o lla rs )
I
195 9

1958

In c o m e ite m

196 2

1961

1960

19 6 3

1964

1965

1966

1,149,643

1,280,347

1,461,763

1,595,183

1,755,582

1,946,776

2,164,115

2,391,753

2,606,012

In te r e s t on U. S. G o v e rn m e n t o b lig a tio n s .................................
In te r e s t a n d d iv id e n d s on o th e r s e c u r itie s ................................
In te r e s t a n d d is c o u n t on real e s ta te m o rtg a g e lo a n s - n e t.

141,950
167,489
808,975

146,353
180,535
921,315

152,458
199,258
1,070,173

151,931
205,751
1,194,282

156,410
206,367
1,342,896

153,659
203,720
1,534,446

153,368
207,164
1,738,621

147,751
211,278
1,950,930

142,509
226,023
2,141,099

2,009,214
56,165
2,119

2,203,133
59,998
2,036

18,767
-3 8

22,733
-5 2

27,576
-108

33,538
-122

41,773
-9 7

53,172
-255

7,474
13,966

9,081
15,409

9,777
17,451

9,984
17,499

13,121
18,425

18,713
21,405

18,095
25,369

201,402

224,789

241,685

252,963

274,544

290,471

311,755

334,451

32,082
64,396

36,608
71,295

38,158
75,303

40,466
79,165

42,792
84,514

45,391
89,514

48,514
93,680

52,085
98,421

20,006
3,366

22,656
3,731

24,134
3,994

25,419
4,158

27,202
4,404

28,138
4,604

30,080
4,720

33,593
4,855

20,925

22,695

25,255

27,369

29,269

32,160

34,683

37,219

38,855

30,252
9,327

32,268
9,573

35,120
9,865

3 f, 298
9,929

39,297
10,028

42,583
10,423

45,871
11,188

49,093
11,874

51,387
12,532

15,887
10,262
71,393

16,810
11,777
78,055

951,952
29,154
1,483

1, 104,100
32,343
1,584

1,231,774
36,045
1,447

In te r e s t a n d d is c o u n t on o th e r lo a n s an d d is c o u n ts - n e t . ..
In c o m e on real e s ta te o th e r th a n b a n k b u ild in g — n e t ..........

11,749
2

12,669
-1

18,407
27

In c o m e on o th e r a s s e ts ......................................................................
In c o m e fro m se rvice o p e ra tio n s ..................................................

8,384
11,094

7,486
11,990

Current operating expenses—to ta l...........................................

187,758

S a la rie s —o f fic e r s ...................................................................................
S a la rie s a n d w a g e s —o th e r e m p lo y e e s .........................................
P e n sio n , h o s p ita liz a tio n a n d g ro u p in s u ra n c e p a y m e n ts ,
an d o th e r e m p lo y e e b e n e fits ....................................................
Fees paid to tru s te e s a n d c o m m itte e m e m b e rs .....................
O c c u p a n cy, m a in te n a n c e , etc. o f b a n k p re m is e s ( in c lu d in g
ta x e s a n d re c u rrin g d e p re c ia tio n ) n e t ..............................

30,099
61,797
18,314
3,203

Income on real estate other than bank building—gross ..............................
Less: Operating expense .............................................................................

Occupancy, maintenance, etc. of bank premises (including taxes and
recurring depreciation)—gross ............................................................
Less: Income from bank building ..............................................................

139
137

216
217

397
370

379
417

302
354

296
404

421
543

D e p o s it in s u ra n c e a s s e s s m e n ts ....................................................
F u rn itu re a n d fix tu re s (in c lu d in g re c u rrin g d e p re c ia tio n ). .
All o th e r c u r re n t o p e ra tin g e x p e n s e s ..........................................

10,183
3,501
39,736

11,316
4,445
43,096

11,707
4,740
48,797

12,824
5,438
54,465

12,172
5,997
56,317

12,709
7,714
63,049

14,035
9,182
64,924

541
638

513
768

961,885

1,078,945

1,236,974

1,353,498

1,502,619

1,672,232

1,873,644

2,079,998

2,271,561

10,342

11,649

13,637

16,011

17,966

22,587

26,022

29,487

37,480

S ta te fra n c h is e a n d in c o m e ta x e s .................................................
Fed era l in c o m e ta x e s ..........................................................................

9,831
511

11,172
477

13,190
447

15,277
734

17,502
464

19,168
3,419

21,657
4,365

22,048
7,439

31,426
6,054

Net current operating income after taxes

951,543

1,067,296

1,223,337

1,337,487

1,484,653

1,649,645

1,847,622

2,050,511

2,234,081

Net current operating incom e............

Dividends and interest on deposits.........................................

812,254

897,469

1,073,542

1,147,767

1,334,005

1,481,869

1,653,768

1,809,350

2,087,072

Net current operating income after taxes and dividends........

139,289

169,827

149,795

189,720

150,648

167,776

193,854

241,161

147,009

Non-recurring income, realized profits and recoveries
credited to profit and loss, and transfers from valuation
adjustment provisions—to ta l.............................................

66,160

91,205

142,009

113,763

105,907

113,085

105,454

75,130

177,612

17,295

21,147

31,133

17,567

20,453

28,678

18,048

15,242

20,211

30,974
138
367
624

39,498
192
646
2,498

34,860
283
535
6,576

54,263
629
337
459

55,751
739
462
957

28,752
2,465
807
871

36,472
1,088
571
1,096

27,375
1,266
719
1,532

59,173
773
1,548
3,429

8,345
8,068
28
321

14,270
12,021
17
916

57,588
10,480
86
468

10,873
29,068
36
531

5,460
21,465
66
554

26,995
24,342
46
129

22,029
25,786
92
272

11,817
16,365
121
693

13,635
78,458
20
365

N o n -re c u rrin g in c o m e .........................................................................
Realized p ro fits and re c o v e rie s on:
S e c u ritie s sold o r m a tu r e d ............................................................
Real e s ta te m o rtg a g e lo a n s ..........................................................
O th e r real e s ta te ................................................................................
All o th e r a s s e ts ..................................................................................
T ra n s fe rs fro m v a lu a tio n a d ju s tm e n t p ro v is io n s 1 on:
S e c u ritie s ..............................................................................................
Real e s ta te m o rtg a g e lo a n s ..........................................................


All o th e r a s
http://fraser.stlouisfed.org/s e ts ...................................................................................
Federal Reserve Bank of St. Louis

CORPORATION

..........

Franchise and income taxes—to ta l..........................................

INSURANCE

1,790,318
49,756
1,941

836,515
25,985
1,555

DEPOSIT

1,580,276
44,174
1,656

Interest and discount on real estate mortgage loans—gross .......................
Less: Mortgage servicing fees .....................................................................
Premium amortization ......................................................................

FEDERAL

1,383,735
39,283
1,556

178

Current operating income—to ta l..............................................

Non-recurring expenses, realized losses charged to profit
and loss, and transfers to valuation adjustment pro­
visions—to ta l........................................................................
N o n -re c u rrin g e x p e n s e s ....................................................................
R ealized lo sse s on:
S e c u ritie s s o ld ....................................................................................
Real e s ta te m o rtg a g e lo a n s .........................................................
O th e r real e s t a te ...............................................................................
All o th e r a s s e ts ..................................................................................
T ra n s fe rs to v a lu a tio n a d ju s tm e n t p ro v is io n s 1 on:
S e c u ritie s ..............................................................................................
Real e s ta te m o rtg a g e lo a n s .........................................................
O th e r real e s t a te ...............................................................................
All o th e r a s s e t s ..................................................................................

Net additions to total surplus accounts from operations.

79,852

126,876

123,664

116,143

109,192

13,699

11,385

101,611

16,981

88,234

17,692

93,036

18,941

17,331

12,991

15,306

10,499

25,056
603
191
684

66,875
330
260
440

63,846
508

40,851
1,252
375
404

31,379
1,083
662
424

47,629
1,681
656
655

39,884
2,023
712
936

48,124
3,037
886
927

100,585
7,015
1,644
2,646

21,946
16,733
45
895

30,347
16,151
40
1,048

23,352
17,679
19
754

19,337
35,377

11,548
21,534
74
503

8,692
22,266
57
673

6,524
17.394

744

30,925
25,252
76
450

716

13,015
11,590
97
597

125,597

134,156

168,140

187,340

147,363

179,250

211,074

223,255

176,933

571
14

173
99

471
136

278
53

1,658

3,389

756
64

341
85

1,277

6,058
765

6,564
841
118

6,811

210
315

111

122

147,688

Memoranda
Recoveries credited to valuation adjustment provisions1
(not included in recoveries above) on:

9,339
197
26
385

8,110
1,131
13
165

7,721
720
5
218

5,830
501
448

12,973
5,136
190
178

Cash a n d d u e fro m b a n k s .........................
U n ite d S ta te s G o v e rn m e n t o b lig a tio n s .
O th e r s e c u r itie s ..............................................
Real e s ta te m o rtg a g e lo a n s ......................
O th e r lo a n s a n d d is c o u n ts ........................
O th e r real e s t a te ............................................
A ll o th e r a s s e ts ...............................................

29.160.570

31.248.671

34.339.564

35.916.590

38.152.221

742,225
5,338,796
4,378,447
18,045,621
227,027
4,361
424,093

689,698
5,236,825
4,677,222
19,937,652
244,010
7,002
456,262

41.180.616

721,308
5,092,512
5,036,291
22,628,058
355,327
11,555
494,513

44.609.410

48.466.656

757,912
4,791,909
5,228,022
24,255,437
353,474
18,955
510,881

794,362
4,748,691
5,151,555
26,435,337
441,994
19,640
560,642

51.399.898

786,298
4,563,328
5,115,637
29,5-8,513
543,458
21,114
612,268

768,719
4,351,966
5,057,794
33,121,502
588,196
28,389
692,844

891,727
4,030,731
5,069,343
36,991,670
672,117
27,228
783,840

838,855
3,594,830
5,153,130
40,095,486
842,896
29,263
845,438

Liabilities and surplus accounts—to ta l.
T o ta l d e p o s its ...............................................

Savings and time deposits .................................
Demand deposits ...............................................

29.160.570

31.248.671

34.339.564

26,304,610

28,136,390

48.466.656

51.399.898

O th e r lia b ilitie s .............................................
T o ta l s u rp lu s a c c o u n ts .............................
N u m b e r o f a c tiv e o ffic e rs , D e c e m b e r 3 1 ___
N u m b e r o f o th e r e m p lo y e e s , D e c e m b e r 3 1 .

258

1,220

257
341

35.916.590

38.152.221

41.180.616

30,822,839

44.609.410

28,106,089
30,301

30,790,599
32,240

32,320,488

34,350,820

37,175,285

506,744
3,089,358

537,630
3,263,771

43,609,062
376,687

46,590,715

598,011
2,918,714

39,997,217
337,057

43,985,749

512,192
2,600,089

36,870,906
304,379

40,334,274

431,019
2,424,941

34,070,511
280,309

588,622
3,416,709

660,037
3,615,099

653,614
3,827,293

764,445
4,044,734

2,356
14,925

2,504
15,110

2,885
16,753

2,977
17,290

3,085
17,617

3,170
18,459

3,281
18,958

3,423
19,451

3,602
19,609

241

268

325

330

331

330

327

329

332

26,274,758
29,852

32,113,129
207,359

46,172,242
418,477

1 Includes “ Valuation reserves” and “ Other asset valuation provisions (direct write-downs).”
2 For 1958 through 1960, averages of figures reported at beginning, middle, and end of year. For 1961 through 1966, averages of amounts for four consecutive official call dates beginning with the end of the pre­
vious year and ending with the fall call of the current year.
&
6
r

Back figures, 1934-1957: Data for 1934-1950, which however are not comparable with figures for 1951-1966, may be found in the following Annual Reports-1941 p. 173- and 1950 pp 272-273 For 1951-1957 see
the Annual Report for 1959, pp. 166-167.
’
’




179

N u m b e r o f banks, D e cem b er 3 1 .

6

BANKS

6,267
217
3
300

INSURED

585

O
F

Average assets and lia b ilitie s 2
Assets—to ta l..............................................

212

37

Realized losses charged to valuation adjustment provi­
sions1 (not included in realized losses above) on:
S e c u ritie s ................................................................................................
Real e s ta te m o rtg a g e lo a n s ...........................................................
O th e r real e s t a te ..................................................
A ll o th e r a s s e ts ....................................................................................

201

2

INCOME

S e c u ritie s ................................................................................................
Real e s ta te m o rtg a g e lo a n s ...........................................................
O th e r real e s t a te .................................................................................
All o th e r a s s e ts ...................................... .............................................

T a b le 1 1 9 . RATIOS OF INCOME OF INSURED MUTUAL SAVINGS BANKS, 1958-1966
1958

Incom e item

Amounts per $100 of current operating income
Current operating income—total...............................................................................................

1959

$100.00 $100.00

1960

1961

$100.00 $100.00

1962

1963

$100.00 $100.00

1964

1965

1966

$100.00 $100.00 $100.00

10.43
13.63
73.21
1.26
.51
.96

9.52
12.90
74.87
1.18
.57
.96

8.91
11.76
76.49
1.29
.56
.99

7.89
10.46
78.82
1.42
.51
.90

7.09
9.57
80.34
1.55
.60
.85

6.18
8.83
81 57
1.75
.78
.89

5.47
8.67
82.16
2.04
.69
.97

Current operating expenses—total............................................................................................

16.33

15.73

15.38

15.15

14.41

14.10

13.42

13.03

2.62
5.37
1.59
.28

2.51
5.03
1.56
.26

2.50
4.88
1.55
.26

2.39
4.72
1.51
.25

12.83

Salaries—o ffic e rs ............................................................................................................................................
Salaries and wages—o th e r e m p lo y e e s ....................................................................................................
Pension, h o sp italization and gro u p in sura nce paym ents, and o th e r em ployee b e n e fits ........

2.30
4.51
1.45
.24

2.20
4.34
1.40
.23

2.10
4.14
1.30
.21

2.03
3 92
1.26
.20

2.00
3.78
1.29
.19

F u rn itu re and fix tu re s (in c lu d in g re c u rrin g d e p re c ia tio n )................................................................
All o th e r c u rre n t o p e ra tin g expe n s e s ......................................................................................................

1.82
.89
.30
3.46

1.77
.88
.35
3.37

1.73
.80
.32
3.34

1.72
.80
.34
3.42

1.67
.69
.34
3.21

1.65
.65
.39
3.24

1.60
.65
.42
3.00

1 55
66
43
2.98

1.49
.64
.45
2.99

Net current operating income...................................................................................................

83.67

84.27

84.62

84.85

85.59

85.90

86.58

86.97

87.17

.90

.91

.93

1.00

1.02

1.16

1.20

1.24

1.44

.86
.04

.87
.04

.90
.03

.96
.04

1.00
.02

.98
. 18

1.00
.20

93
.31

1 21
.23

O ccupancy, m aintena nce, etc. of bank prem ises (includin g taxes and recurring depreciation),
— n e t................................................................................................................................................................

State fra n ch ise and incom e ta x e s ............................................................................................................

83.36

83.69

83.85

84.57

84.74

85.38

85.73

85.73

70.10

73.44

71.95

75.99

76.12

76.42

75.65

80.09

Net current operating income after taxes and dividends.........................................................

12.12

13.26

10.25

11.90

8.58

8.62

8.96

10.08

5.64

3.94
.64
3.30
.04
3.26
2.78
.48

4.10
.65
3.45
.03
3.42
2.87
.55

4.26
.66
3.60
.04
3.56
3.12
.44

4.44
.67
3.77
.05
3.72
3.19
.53

4.60
.66
3.94
.05
3.89
3.50
.39

4.73
.67
4.06
.05
4.01
3.60
.41

4.85
.65
4.20
.06
4.14
3.71
.43

4 93
64
4 29
06
4 23
3.73
.50

5.07
.65
4.42
.07
4.35
4.06
.29

Amounts per $100 of total assets1
C u rre n t o p e ra tin g in com e—t o ta l...................................................................................................................
C u rre n t o p e ra tin g expenses—total .............................................................................................................
Net c u rre n t o p e ra tin g in c o m e ........................................................................................................................
State fra n ch ise and incom e taxes.
.......................................................................................................
N e t c u rre n t op e ra tin g incom e a fte r taxes ...............................................................................................
Dividends and in te re s t on dep osits ............................................................................................................
N e t c u rre n t o p e ratin g incom e a fte r taxes and d iv id e n d s .....................................................................
N o n -re cu rrin g incom e, realized p ro fits and recoveries credited to p ro fit and loss, and tra n s fe rs
fro m valuation a d ju s tm e n t p ro v is io n s 2 o ta l.......................................................................................
—t
N o n-recurring expenses, realized losses charged to p ro fit and loss, and tran sfers to valuation
a d ju s tm e n t p ro v is io n s 2
—to ta l....................................................................................................................
N et a d d itio n s to total su rp lu s accou nts fro m o p e ra tio n s ......................................................................

.22

.29

.41

.31

.28

.27

.24

.15

.34

.27
.43

.41
.43

.36
.49

.32
.52

.28
.39

.24
.44

.20
.47

.19
.46

.29
.34

In te re s t on U. S. G o vernm e nt o bliga tions per $ 1 0 0 o f U. S. G overnm ent o b lig a tio n s.................
In te re s t and dividen ds on o th e r se curitie s per $ 1 0 0 of o ther s e c u ritie s .........................................
In te re s t and d iscount on real estate m ortgage loans per $10 0 of real estate mortgage lo a n s .
In te re s t and discount on o th e r loans and d iscounts per $100 of other loans and discounts
D ividends and in te re st on dep osits per $ 1 0 0 of savings and tim e d e p o sits..................................
Net ad d itio n s to total su rp lu s accounts fro m ope ratio ns per $100 of total surplus a ccou nts.........

2.66
3.83
4.48
5.18
3.09
5.18

2.79
3.86
4.62
5.19
3.19
5.16

2.99
3.96
4.73
5.18
3.49
5.76

3.17
3.94
4.92
5.31
3.57
6.06

3.29
4.01
5.08
5.14
3.92
4.52

3.37
3.98
5.19
5.07
4.02
5.25

3.52
4.10
5.25
5.70
4.13
5.84

3.67
4.17
5.27
6.22
4.15
5.83

3.96
4.39
5.34
6.31
4.52
4.37

N u m b e r of banks, Decem ber 3 1 ..................................................................................................................

241

268

325

330

331

330

327

329

332

Special ratios1

1 For 1958 through 1960, averages of figures reported at beginning, middle, and end of year. For 1961 through 1966, averages of amounts for four consecutive official call dates beginning with the end of the pre­

 and ending with the fall call of the current vear
vious year
2 Includes "Valuation reserves” and ,,n‘
http://fraser.stlouisfed.org/
Back figures, 1934,1941-1950,
1 Bank of ir. n 1 R.1
QO
ld.O
r Q1
Federal Reserve R nn O St.FLouis (^7

- ("direct write-downs).”
'^.h however are not comparable with figures for 1951-1966, may be found in the

CORPORATION

82.77
70.65

INSURANCE

Net current operating income after taxes.................................................................................
Dividends and interest on deposits..........................................................................................

DEPOSIT

11.43
14.10
71.96
.99
.58
.94

FEDERAL

12.35
14.57
70.37
1.02
.73
.96

180

In te re s t on U. S. G overnm e nt o b lig a tio n s ..............................................................................................
In te re s t and dividen ds on o th e r s e c u ritie s ............................................................................................
In te re s t and d isco u n t on real estate m ortgage loans— n e t..............................................................
In te re s t and d isco u n t on o th e r lo ans and disc o u n ts —n e t................................................................
Incom e on o th e r a s s e ts ................................................................................................................................
Incom e fro m service o p e ra tio n s ................................................................................................................

Table

120. SOURCES AND DISPOSITION OF TOTAL INCOME, INSURED MUTUAL SAVINGS BANKS, 1958-1966
(A m o u n ts in m illio n s o f d o lla rs )
In c o m e ite m

1958

19 5 9

1960

1 96 1

1962

1963

1964

196 5

19 6 6

..........

1,216

1,372

1,604

1,709

1,861

2,060

2,270

2,467

2,783

L o a n s ............................................................................................................................................................
U.S. G o v e rn m e n t o b lig a tio n s .............................................................................................................
O th e r s e c u r itie s .......................................................................................................................................
O th e r c u r r e n t in c o m e ............................................................................................................................
N o n -re c u rrin g in c o m e , re c o v e rie s , e t c ..........................................................................................

821
142
167
20
66

934
146
181
19
91

1,089
153
199
21
142

1,213
152
206
24
114

1,366
156
206
27
106

1,562
154
204
27
113

1,772
153
207
32
105

1,993
148
211
40
75

2,194
143
226
43
177

113
812
74
80
10
126

120
897
81
127
12
134

134
1,073
91
124
14
168

142
1,148
100
116
16
187

149
1,334
104
109
18
147

159
1,482
115
102
23
179

168
1,654
122
88
26
211

177
1,809
135
93
29
223

189
2,087
146
148
37
177

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

67.5
11.7
13.8
1.6
5.4

68.1
10.7
13.2
1.4
6.6

67.9
9.5
12.4
1.3
8.9

71.0
8.9
12.0
1.4
6.7

73.3
8.4
11.1
1.5
5.7

75.8
7.5
9.9
1.3
5.5

78.1
6.8
9.1
1.4
4.6

80.8
6.0
8.6
1.6
3.0

78.8
5.1
8.1
1.6
6.4

9.3
66.8
6.1
6.6
.8
10.4

8.7
65.4
5.9
9.3
.9
9.8

8.3
66.9
5.7
7.7
.9
10.5

C
O

Amount
Total incom e......

..............................

8.0
71.6
5.6
5.9
1.0
7.9

7.7
71.9
5.6
5.0
1.1
8.7

7.4
72.9
5.4
3.9
1.1
9.3

7.2
73.3
5.5
3.8
1.2
9.0

6.8
75.0
5.2
5.3
1.3
6.4

Sources

.........................................................

........

Disposition
S a la rie s a n d w a g e s 1...............................................................................................................................
D iv id e n d s a n d in te r e s t on d e p o s its ................................................................................................
O th e r c u r r e n t e x p e n s e s .......................................................................................................................
N o n -re c u rrin g e x p e n s e s , e tc ..............................................................................................................
In c o m e t a x e s .............................................................................................................................................
A d d itio n s to c a p ita l a c c o u n ts ............................................................................................................

0
°

L o a n s ............................................................................................................................................................
U.S. G o v e rn m e n t o b lig a tio n s .............................................................................................................
O th e r s e c u r itie s .......................................................................................................................................
O th e r c u r r e n t in c o m e ............................................................................................................................
N o n -re c u rrin g in c o m e , re c o v e rie s , e tc ..........................................................................................

67.1
5.9
6.8
1.0
10.9

BANKS

Sources

INSURED

Percentage distribution
Total incom e......

O
F

S a la rie s a n d w a g e s 1...............................................................................................................................
D iv id e n d s a n d in te r e s t on d e p o s its ................................................................................................
O th e r c u r r e n t e x p e n s e s .......................................................................................................................
N o n -re c u rrin g e x p e n s e s , lo sses, e tc ..............................................................................................
In c o m e t a x e s .............................................................................................................................................
A d d itio n s to c a p ita l a c c o u n ts ............................................................................................................

INCOME

Disposition

1 Includes pension, hospitalization and other employee benefits and fees paid to trustees and committee members.




181

Note: Due to rounding differences, components may not add to totals.

BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES;
DEPOSIT INSURANCE DISBURSEMENTS
Table 121.
Table 122.
Table 123.

Table 124.




Number and deposits of banks closed because of financial difficulties,
1934-1966
Insured banks requiring disbursements by the Federal Deposit Insurance
Corporation during 1966
Depositors, deposits, and disbursements in insured banks requiring dis­
bursements by the Federal Deposit Insurance Corporation, 1934-1966
Banks grouped by class of bank, year of deposit payoff or deposit
assumption, amount of deposits, and State
Recoveries and losses by the Federal Deposit Insurance Corporation on
principal disbursements for protection of depositors, 1934-1966

BANKS
INSURANCE

Insured banks: books of bank at date of closing; and books of
FD IC , D e c e m b e r 3 1 ,1 9 6 6 .

DEPOSIT
DISBURSEMENTS
183




Sources of data

AND

D isbursem ents by the F ed eral Deposit Insurance C orporation to
protect depositors are m ade w hen the insured deposits of banks in
fin an cial difficulties are paid off, or when the deposits of a failing
b ank are assum ed by a n o th e r insured bank with the financial aid of
the C orporation . In deposit payoff cases, the disbursem ent is the
am ount paid by the C o rporation on insured deposits. In deposit
assum ption cases, the p rincipal disbursem ent is the am ount loaned
to failing banks, or the price paid for assets purchased from them ;
additional d isbursem en ts are m ade in those cases as advances for
protection of assets in process of liquidation and for liquidation
expenses.

Noninsured bank failure
O ne noninsured bank failed in 1966, the Intra Bank, S ocieie
A nonym e Lebanaise, a branch of the Beirut bank, licensed in New
York State and located in N ew Y ork City. It closed on O ctober 15,
1966, and on June 30, 1966 had deposits of $2,648,000.
For detailed data regarding noninsured banks which suspended
in the years 1934-1962, see the Annual R eport for 1963, pp. 27-41.
For 1963-1965, see T a b le 121, this Report, and previous Reports
for respective years.

CLOSED

Deposit insurance disbursements

Table 121. NUMBER AND DEPOSITS OF BANKS CLOSED
BECAUSE OF FINANCIAL DIFFICULTIES, 1934-1966

Insured

Insured
Non­
insured 1

Total

Without
disburse­
ments
by
FDIC2

Total

With
disburse­
ments
by
FDIC3

Total

Non­
insured1

Total

897,151

61,973

835,178

61
32
72
83
80
72
48
16
23
5

52

2

9
26
69
76
73
60
43
14

9
25
69
74
73
60
43
14

3

20

20

35,364
583
592
528
1,038
2,439
358
79
355

5

5

37,332
13,987
28,100
34,141
60.444
160,211
142,787
18,805
19,541
12,525
1,915
5,695
494
7,207
10,674
9,217
5,555
6,464
3,313
45,101
2,948
11,953
11,689
12,502
10,413
2,593
7,965
10,611
4,231
23.444
23,867
45,256
106,171

1,968
13,404
27,508
33,613
59,406
157,772
142,429
18,726
19,186
12,525
1,915
5,695
347
7,040
10,674
6,665
5,513
3,408
3,170
44,711
998
11,953
11,329
11,247
8,240
2,593
6,930
8,936
3,011
23,444
23,438
43,861
103,523

2

1

2
6

3
9
5
5
4
5
4
5
3
3
9
3

6

3
7
7
12

5

2
1
1

5
3
5
4

2

2

1
1

5
3
4
4
2

3
4

3

5

5

2

2
2

2
2

2

4
3

4
3

9
3

5

5

2

2

2

1
1

7
5
7

1
1

147
167
2,552
42
3,056
143
390
1,950
360
1,255
2,173
1,035
1,675
1,220
429
1,395
2,648

41,147
85
'328'

1,190

26,449

10,084

794,031
1,968
13,319
27,508
33,285
59,406
157,772
142,429
18,726
19,186
12,525
1,915
5,695
347
7,040
10,674
5,475
5,513
3,408
3,170
18,262
998
11,953
11,329
1,163
8,240
2,593
6,930
8,936

3,011
23 j 444
23,438
43,861
103,523

formation regarding each of these banks, see Table 22 in the Annual Report of the Federal Deposit Insurance Corporation for 1963, page 221 of the report for 1964,
the report for 1965, and page 183 of this report. One noninsured bank placed in receivership in 1934, with no deposits at time of closing, is omitted (see Table 22,
osits are unavailable for 7 banks.
'ormation regarding these cases, see Table 23 of the Annual Report for 1963.
formation regarding each bank, see the Annual Report for 1958, pp. 48-83 and pp. 98-127, and tables regarding deposit insurance disbursements in subsequent annual
osits are adjusted as of December 31,1966, and exclude deposits for three cases requiring disbursements by the Corporation: 1 bank in voluntary liquidation in 1937
no. 90); 1 noninsured bank in 1938 with insured deposits at date of suspension, its insurance status having been terminated prior to suspension (payoff case no. 162);
i-owned bank closed in 1941 by order of the Federal Government (payoff case no. 234).




CORPORATION

repoi
(payc
and 1

463

INSURANCE

5

471

With
disburse­
ments
by
FDIC3

DEPOSIT

page
note

131

Without
disburse­
ments
by
FDIC2

FEDERAL

602
1934.
1935.
1936.
1937.
1938.
1939.
1940.
1941.
1942.
1943.
1944.
1945.
1946.
1947.
1948.
1949.
1950.
1951.
1952.
1953.
1954.
1955.
1956.
1957.
1958.
1959.
1960.
1961.
1962.
1963.
1964.
1965.
1966.

184

Deposits (in thousands of dollars)

Number

T a b le 1 2 2 .

Case
num ber
D e p o s it
p a y o ff
278

N a m e a n d lo c a tio n

FDIC
d is b u r s e m e n t2
(in th o u s a n d s )

Class o f
b an k

1 ,0 1 2

J a n u a ry 2 4 , 1 9 6 6

N

3 ,0 7 2

J a n u a ry 12, 1 9 6 6

1 ,2 1 7

NM

Five P o in ts N a tio n a l B a n k ,
M ia m i, F lo rid a

D ate o f c lo s in g o r
d e p o s it a s s u m p tio n

NM

C itiz e n s B a n k ,
P o tts v ille , A rk a n s a s

N um ber of
a c c o u n ts 1

1 ,5 5 6

J a n u a ry 3 1 , 1 9 6 6

818

F irs t N a tio n a l B a n k in B row nw oo d,
B ro w n w o o d , Texas

M a rc h 17, 1 9 6 6

472

T h e F irs t N a tio n a l B a nk o f C e n te r,
C e n te r, C o lo ra d o

$

R e ce ive r o r liq u id a tin g a g e n t
o r a s s u m in g ban k

732

S a g u a c h e C o u n ty N a tio n a l Bank,
S a g u a c h e , C o lo ra d o

209

B a n k o f G ray S u m m it,
G ray S u m m it, M is s o u ri

NM

3 ,6 3 0

279

P u b lic B a n k ,
D e tro it, M ic h ig a n

NM

8 3 ,0 4 4

O c to b e r 12, 1 9 6 6

1 0 ,0 0 0

116

F irs t S ta te B a n k o f T u s c o la ,
T u s c o la , T e x a s

NM

2 ,3 9 8

O c to b e r 17, 1 9 6 6

811

N

712

A p ril 7, 1 9 6 6

1,021

Case
num ber

U. S. G ov­
e rn m e n t
o b lig a tio n s

O th e r
s e c u ritie s

Loans,
d is c o u n ts
and
o v e rd ra fts

F irs t S tate B a n k in Tusco la,
T usco la, Texa s

L ia b ilitie s a n d c a p ita l a c c o u n ts 1
B a n k in g
hou se,
f u r n it u r e
a n d fix tu re s

D e p o s it
p a y o ff
278

254,331

96,000

16,000

377,930

O th e r
a s s e ts 3

450

D e p o s it
a s s u m p tio n
li5

T o ta l
O th e r
real
e s ta te

D e p o s its

O th e r
lia b ilitie s

C a p ita l
s to c k

O th e r
c a p ita l
a c c o u n ts

87,664

832,375

774,426

26,665

2,703,041

2,966,731

2,029

1,257,097

1,182,865

25,000

49,232

50,000

-263,036

25,000

400,000

-674,593

628,649

657,381

1,005,856

71,569

135,023

130,300

15,000

955,114

19,629

208

71,753

165,837

28,285

236,235

10,209

45

512,364

725,400

209

434,641

323,260

71,709

1,064,312

26,204

14,736

1,934,862

1,832,485

6,746

50,000

45,631

279

7,879,024

17,183,595

1,927,079

78,123,201

3,857,964

1,099,297

110,076,972

92,959,930

16,180,926

4,620,000

-3,683,884

1 16

168,564

543,482

2,978

2,513,151

69,810

32,022

3,330,007

3,080,829

56,845

62,500

129,833

1 Figures as determined by FDIC agents after adjustment of books of the bank immediately following its closing. In deposit payoff case, number of accounts refers to number of depositors.

 disbursements made to December 31,1966, plus additional disbursements estimated to be required in these cases.
2 Includes
3 Includes in
http://fraser.stlouisfed.org/case number 278 a shortage account of $75,603.
Federal Reserve Bank of St. Louis

185

312,921

6,812

10,903

32,949

207

2

DISBURSEMENTS

C ash a n d
d u e fro m
banks

B a n k o f th e C o m m o n w e a lth ,
D e tro it, M ic h ig a n

INSURANCE

A s s e ts 1

U n ite d B a n k o f U n ion,
U n io n , M is s o u ri

DEPOSIT

208

AND

B la n k e t S ta te B a n k ,
B la n k e t, T e x a s

C oral W ay N a tio n a l Bank,
M ia m i, F lorida

CLOSED

207

F ederal D e p o s it
In s u ra n c e C o rp o ra tio n

BANKS

D e p o s it
a s s u m p tio n
115

INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1966

Table 123. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, 1934-1966
BANKS GROUPED BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF OR DEPOSIT ASSUMPTION, AM O UNT OF DEPOSITS, AND STATE
N um ber of d e p o s ito rs 1

N u m b e r o f banks

Total

All banks........................................

Payoff
cases

A ssum p­
tion
cases

Total

Payoff
cases

A ssu m p­
tion
cases

Total

Payoff
cases

A ssu m p­
tion
cases

P rincipal d isbursem e nts
Total

Advances and
expe nses2

Payoff
cases3

A ssu m p­
tion
c a ses4

Payoff
ca se s5

235,118

570,248

368,572

155,695

212,877

2,678

47,915

84
24
358

29
8
239

55
16
119

331,105
372,545
924,218

82,645
86,939
327,685

180,182
190,536
434,648

76,779
29,418
128,922

103,403
161,119
305,726

75,617
103,273
189,681

35,308
23,002
97,384

40,309
80,271
92,297

705
151
1,823

6,331
19,273
22,313

9
25
69
75
74
60
43
15
20
5
2
1
1
5
3
4
4
2
3
2
2
5
2
1
4
3
1
5
2
7
5
7

9
24
42
50
50
32
19
8
6
4
1

15,767
32,331
43,225
74,148
44,288
90,169
20,667
38,594
5,717
16,917
899

972
102,749

941
8,891
14,781
19,161
30,479
67,770
74,134
23,880
10,825
7,172
1,503
1,768
265
1,724
2,990
2,552
3,986
1,885
1,369
5,017
913
6,784
3,333
1,031
3,026
1,835
4,765
6,208
19,242
13,761
11,508
15,074

941
6,026
8,056
12,045
9,092
26,196
4,895
12,278
1,612
5,500
404

1,454
94,412

1,968
13,319
27,508
33,349
59,684
157,772
142,429
29,718
19,186
12,525
1,915
5,695
347
7,040
10,674
5,475
5,513
3,408
3,170
18,262
998
11,953
11,329
1,163
8,240
2,593
6,930
8,936
23,444
23,438
43,861
103,523

1,968
9,091
11,241
14,960
10,296
32,738
5,657
14,730
1,816
6,637
456

2
6

15,767
44,655
89,018
130,387
203,961
392,718
256,361
73,005
60,688
27,371
5,487
12,483
1,383
10,637
18,540
5,671
6,366
5,276
6,752
24,469
1,811
17,790
15,197
2,338
9,587
3,073
11,171
8,301
36,430
19,934
15,817
95,424

107
109
61
71
52
38
16
6
5
1

83
86
37
34
17
11
4
3
1

24
23
24
37
35
27
12
3
4
1

38,347
83,370
91,218
161,306
211,161
253,528
222,948
198,137
284,809
83,044

29,695
65,512
57,287
74,253
66,768
69,419
32,665
89,189
12,481

8,652
17,858
33,931
87,053
144,393
184,109
190,283
108,948
272,328
83,044

6,418
17,759
21,881
55,248
74,044
118,775
105,189
113,498
199,594
92,960

1,471
3,839
8,961
28,037
51,834
82,185
77,474
64,068
159,418
92,960

5,000
12,906
14,993
36,069
41,112
61,434
44,102
59,514
83,439
10,000

4,309
11,554
10,550
20,361
17,094
24,778
17,818
39,444
9,786

248,460
285,606
596,533

4
1
1
3
3
1
5
2
7
3
1

Banks with deposits of—
Less th a n $ 1 0 0 ,0 0 0 ........................
$ 1 0 0 ,0 0 0 to $ 2 5 0 ,0 0 0 ..................
$ 2 5 0 ,0 0 0 to $ 5 0 0 ,0 0 0 ..................
$ 5 0 0 ,0 0 0 to $ 1 ,0 0 0 ,0 0 0 ...............
$ 1 ,0 0 0 ,0 0 0 to $ 2 ,0 0 0 ,0 0 0 ...........
$ 2 ,0 0 0 ,0 0 0 to $ 5 ,0 0 0 ,0 0 0 ...........
$ 5 ,0 0 0 ,0 0 0 to $ 1 0 ,0 0 0 ,0 0 0
$ 1 0 ,0 0 0 ,0 0 0 to $ 2 5 ,0 0 0 ,0 0 0 ....
$ 2 5 ,0 0 0 ,0 0 0 to $ 5 0 ,0 0 0 ,0 0 0 ....
$
FRASER5 0 ,0 0 0 ,0 0 0 to $ 1 0 0 ,0 0 0 ,0 0 0 ...

Digitized for


1
27
25
24
28
24
7
14
1
1
1
1
5
3
4
4
2
3
2
2
1
1
1

8,080
5,465
2,338
4,380
3,073
11,171
8,301
36,430
19,934
14,363
1,012

12,324
45,793
56,239
159,673
302,549
235,694
34,411
54,971
10,454
4,588
12,483
1,383
10,637
18,540
5,671
6,366
5,276
6,752
24,469
1,811
9,710
9,732
5,207

6,503
4,702
1,163
4,156
2,593
6,930
8,936
23,444
23,438
42,889
774
4,947
13,920
12,921
27,211
22,210
36,590
27,715
49,429
40,176

4,229
16,267
18,389
49,388
125,034
136,773
14,987
17,369
5,888
1,459
5,695
347
7,040
10,674
5,475
5,513
3,408
3,170
18,262
998
5,450
6,628
4,084

4,438
2,795
1,031
2,796
1,835
4,765
6,208
19,242
13,761
11,045
735

2,865
6,725
7,116
21,387
41,574
69,239
11,602
9,213
1,672
1,099
1,768
265
1,724
2,990
2,552
3,986
1,885
1,369
5,017
913
2,346
538

43
108
67
103
93
162
89
50
38
53
9

463
14,339

106
87
20
38
51
82
154
267
560
393
106

691
1,352
4,443
15,708
24,018
36,656
26,284
20,070
73,653
10,000

88
209
162
357
353
361
425
303
338
81

230

272
934
905
4,902
17,603
17,237
1,479
1,076
72
37
96
11
362
200
166
524
127
195
428
145
665
51
31

89
308
154
173
607
2,251
3,473
5,637
5,491
5,404
24,723

CORPORATION

805,366

INSURANCE

497,269 1,130,599

DEPOSIT

190 1,627,868

FEDERAL

276

Year7
193 4
..........................................
1 9 3 5 .....................................................
1 9 3 6 .....................................................
1 9 3 7 .....................................................
1 9 3 8 .....................................................
1 9 3 9 .....................................................
1 9 4 0 .....................................................
1 9 4 1 .....................................................
1 9 4 2 .....................................................
1 9 4 3 .....................................................
1 9 4 4 .....................................................
1945
.............................
1946
...................
1947
1948
1949
1950
1951
1952
1953
1954
1 9 5 5 .....................................................
1 9 5 6 .....................................................
1957
1 9 5 8 .....................................................
1959
I9 6 0
1961
1963
1964
..............................
1965
1 9 6 6 .....................................................

A ssu m p ­
tion
ca se s6

466

Class of bank
N a tional b a n k s ..................................
State banks m e m b e rs F. R. S----Banks n o t m e m b e rs F. R. S.........

186

C lassification

D isbursem ents by FD IC 1
(in thousand s of dollars)

D e p o s its 1
(in thousand s of dollars)

State
794
4,541
17,890
1,382
5,379

7,111
905
3,169
712

2,285
2,538
47,298
2,987
1,526

100
1,942
46,220
2,262
1,526

2,185
596
1,078
725

1,089
1,720
13,893
1,410
1,242

94
1,576
13,032
938
1,242

995
144
861
472

1
33
433
38
8

91
48
138
42

F lorida.................
G eorgia...............
Id a h o ...................
Illin o is ..................
In d ia n a ................

4,714
9,410
2,451
79,721
30,006

448
8,797
2,451
41,802
12,549

4,266
613

3,457
1,959
1,894
50.765
13,593

217
1,870
1,894
25,081
3,932

3,240
89

1,517
1,620
1,493
28,466
6,197

203
1,551
1,493
20,484
3,096

1,314
69

3
33
29
296
39

106
33

Io w a .....................
K a nsas................
K e n tu c k y ............
Lou isia n a ............
M a in e ...................

16,055
5,145
36,139
6,087
9,710

4,066
2,254
18,490
6,087

11,989
2,891
17,649

9,401
1,234
8,888
1,652
5,450

4,383
539
3,953
1,652

5,018
694
4,934

3,875
974
5,455
668
2,346

2,804
482
3,329
668

1,071
492
2,126

M a ry la n d ............
M a s s a c h u s e tts ..
M ich ig a n .............
M in n e s o ta ..........
M is s is s ip p i.........

22,567
9,046
115,863
2.650
1.651

6,643

15,924
9,046
113,779

4,566
3,019
107,727
818
334

828

3,738
3,019
106,332

3,109
1,564
17,462
640
257

735

2,374
1,564
16,150

M is s o u ri..............
M o n ta n a .............
N e b ra ska ...........
New H a m psh ire
New J e rs e y ........

41,277
I,500
6,069
1,780
522,563

29,478
849
6,069

11,799
651

3,867
880

103,797

1,780
418,766

11,107
1,095
8,145
296
194,630

33,128.

296
161,502

7,678
639
5,008
117
82,125

26,468

117
55,657

161

8
20,154

New Y o rk ............
North Carolina. .
North D a k o ta . . .
O h io .....................
O k la h o m a ...........

269,621
10,408
14,103
13,751
25,070

28,440
3,677
6,760
7,585
20,149

241,181
6,731
7,343
6,166
4,921

145,439
3,266
3,830
7,223
13,765

13,286
1,421
1,552
2,345
11,053

132,153
1,845
2,278
4,877
2,712

67,872
2,387
2,656
2,098
9,255

10,836
1,156
1,397
1,610
7,944

57,036
1,231
1,259
488
1,311

32
23
24
7
178

10,847
179
203
44
104

O re g o n ................
P e nn sylva n ia . . .
South C a ro lin a ..
South D a k o ta .. .
T e n nessee.........

3,439
166,894
1,848
12,515
12,358

1,230
43,828
403
11,412
9,993

2,209
123,066
1,445
1,103
2,365

2,670
75,756
849
2,987
1,942

1,368
14,340
136
2,862
1,620

1,302
61,416
714
126
322

1,948
51,292
274
2,411
1,278

986
10,133
136
2,388
1,164

962
41,159
138
23
114

11
75

81
9,524
10
9
25

Texa s ...................
V e rm o n t..............
Virginia ................
W a sh in g to n ........
W e s t'V irg in ia ....

42,167
II,0 5 7
35,715
4,179
8,346

35,231
8,687
12,638

6,936
2,370
23,077
4,179

24,384
3,725
17,778
1,538
2,006

18,461
3,375
7,652

5,922
350
10,127
1,538

15,030
3,445
8,275
935
1,458

12,645
3,259
3,879

2,385
186
4,396
935

424
21
278

W isco n sin ...........
W yo m in g .............

26,898
3,212

18,739

8,159
3,212

9,512
2,033

5,966

3,545
2,033

7,188
202

5,096

2,092
202

54

37,919
17,457

9,710

1,394
818
334
7,240
215
8,145

113
72
201

9

371
1 030
760

6,011
186
5,008

1,667
453

665

124
17
5
99
6
46

209
22
505
512

11

1,458

420
19

Note:



187

1 Adjusted to December 31, 1966. In assumption cases, number of depositors refers to number of deposit accounts.
2 Excludes $295 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, and
other expenses of field liquidation employees not chargeable to liquidation activities.
3 Includes estimated additional disbursements in active cases.
4 Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.
5 These disbursements are not recoverable by the Corporation; they consist almost wholly of field payoff expenses.
6 Includes advances to protect assets and liquidation expenses of $47,555 thousand, all of which have been fully recovered by the Corporation, and $360 thousand of non-recoverable expenses.
7 No case in 1962 required disbursements. Disbursement totals for each year relate to cases occurring during that year, including disbursements made in subsequent years.
Due to rounding differences, components may not add to totals.

DISBURSEMENTS

26
28

174
21

INSURANCE

2,006

46
5
44
10

2,346

1,312
640
257

791
384

DEPOSIT

8,346

5,450

7,982
3,101

AD
N

2,084
2.650
1.651

25,684
9,662

CLOSED

7,905
5,446
21,059
2,094
5,379

BANKS

A la b a m a .............
A rk a n s a s ............
C a lifo rn ia ............
C o lorado .............
C o n n e c tic u t.......

Table 124. RECOVERIES AND LOSSES BY THE FEDERAL DEPOSIT INSURANCE CORPORATION ON PRINCIPAL DISBURSEMENTS
FOR PROTECTION OF DEPOSITORS, 1934-1966
(A m o u n ts in th o u s a n d s o f d o lla rs )

Total..........

D e p o s it a s s u m p tio n cases

D e posit p a y o ff cases

A ll c ases
R e­
E s tim a te d
c o v e rie s a d d itio n a l
to Dec. re c o v e rie s
31, 1966

Re­
E s tim a te d
c o v e rie s a d d itio n a l
to Dec. recoveries
31, 1966

Re­
E s tim a te d
c o v e rie s a d d itio n a l
to Dec. re co ve rie s
3 1 ,1 9 6 6

188

L iq u id a tio n
s ta tu s a n d
year of de­
p o s it p a y o ff
o r d e p o s it
a s s u m p tio n

Losses1

Num ber
of
banks

P rin c ip a l
d is b u rs e ­
m e n ts 3

27,183

190

212,877

186,462

8,374

18,041

12,285
14,898

16
174

61,004
151,873

45,466
140,996

8,374

7,164
10,877

207
1,751
1,460
2,524
1,184

2,865
6,725
7,116
21,387

1,919
5,730
6,090
20,147

20,399
4,313
12,065
1,320
5,376

5,798
• 582
213
292
123

41,574
69,239
11,602
9,213
1,672

40,219
65,928
11,225
8,816
1,672

363

40

1,099
1,768
265
1,724
2,990

1,099
1,768
265
1,631
2,349

2,552
3,986
1,885
1,369
5,017

2,183
2,601
1,792
577
5,017

369
1,385
3
792

258

Losses1

Num ber
of
b an ks

P rin cipal
d is b u rs e ­
m e n ts 2

16,656

45,224

276

155,695

120,230

16,656

19,449
25,775

20
256

58,469
97,226

37,902
82,328

207
2,696
2,455
3,549
2,425

9
24
42
50
50

941
6,026
8,056
12,045
9,092

734
4,274
6,595
9,520
7,908

7,153
3,767
591
688
123

32
19
8

26,196
4,895
12,278
1,612
5,500

Num ber
of
banks

P rin c ip a l
d is b u r s e ­
m e n ts

466

368,572

306,692

36
430

119,473
249,099

83,368
223,324

9
25
69
75
74

941
8,891
14,781
19,161
30,479

734
6,193
12,325
15,610
28,055

60
43
15

67,770
74,134
23,880
10,825
7,172

60,618
70,241
23,290
10,136
7,048

1,503
1,768
265
1,724
2,990

1,462
1,768
265
1,631
2,349

2,552
3,986
1,885
1,369
5,017

2,183
2,601
1,792
577
5,017

369
1,385
3
792

913
6,784
3,333
1,031
3,026

654
6,554
3,038
1,031
2,998

258
230
250

1,722
4,765
4,571
15,775
9,198

105

5
2
7

1,835
4,765
6,208
19,242
13,761

130
2,337
2,316

5
7

11,508
15,074

551
1,939

3,231
8,350

Losses1

Status
Year 4

5

2

1
1

5
3

2
3

2

2

5
2

1

4
3

1

4

72
641

4,438
2.795
1,031
2.796

4,208
2,500
1,031
2,768

230
250

913
2,346
538

28

230

230

105

1,508
1,130
2 247

1,722
4,765
4,571
15,775
9,198

130
2,337
2,316

1,508
1,130
2,247

7,726
4,785

11,045
735

348
476

3,217
229

7,480

463
14,339

203
1,463

72
641

654
2,346
538

1,835
4,765
6,208
19,242
13,761

1,355
3,185
378
396

14

8,121

246
4,755

1 Includes estimated losses in active cases. Not adjusted for interest or allowable return, which was collected in some cases in which the disbursement was fully recovered.
2 Includes estimated additional disbursements in active cases.
3 Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.
FRASER
4 No case in 1962 required disbursements.
Note: Due to rounding differences, components may not add to totals.

Digitized for


CORPORATION

4
4

6

125

INSURANCE

20

125

945
995
1,025
1,241

DEPOSIT

193 4
193 5
193 6
193 7
193 8
193 9
194 0
1941. . ..
194 2
194 3
194 4
1945. . ..
1946. ...
1947
1948. ...
1949. ...
1950. ...
195 1
195 2
195 3
1954. ...
1955.. ..
1956....
1957....
1958...
1959.. ..
1960...
1961... .
1963....
1964.. ..
1965... .
1966

8,282

FEDERAL

A c t iv e ..........
T e rm in a te d




INDEX




191

INDEX

Page

Absorptions:
Of insured banks requiring disbursements by FDIC. See
Banks in financial difficulties.
Of operating banks, 1966 _________________________________________ 15-17, 128
Of operating banks approved by FDIC, 1966 _____________________ 15-17, 35-67
Regulation o f ____________________________________________________15-17, 71-74
Advertising for funds by insured b a n k s ___________________________________ 27, 120
Admission of banks to insurance:
Applications for, 1966 _________________________________________________

15

Number of banks admitted, by class of bank, 1966 _____________________

129

A pplications from banks ____________________________________________________15-18
Areas outside continental United States, banks and branches located in:
Average assets and liabilities, insured commercial banks, 1966 _______152-153
Earnings, expenses, profits, and dividends, 1966 _____________________ 168-169
Number, December 31, 1966 ________________________________________ 132, 139
Assessments for deposit insurance _________________________________________ 29-33
Assets, liabilities, and capital of banks (see also Deposits):
All banks, June 30, and December 31, 1966 __________________________142-145
Commercial banks, June 30, and December 31, 1966 ________________ 142-145
Insured com m ercial banks:
Amount, December call dates, 1962-1966 _______________________ 146-149
Amount, December 31, 1966, by class of b a n k _____________________

150

Amount, December 31, 1966, by deposit size of b a n k ______________

151

Average fo r 1966, by S ta te _____________________________________ 152-153
Distribution of banks with given ratios of selected items to
total assets, by size of bank, December 31, 1966 ____________ 154-155
Insured mutual savings banks:
Amount, and percentage distributions, December call dates,
1962-1966 _____________________________________________________ 146-149
M ajor categories, average, 1958-1966 ____________________________

179

Mutual savings banks:
Banks grouped by insurance status, June 30, and December
31, 1966 ______________________________________________________ 142-145
Sources of data _______________________________________________ 141, 157
Assets and liabilities of FDIC _______________________________________________ 29-30
Assets purchased by FDIC from banks in financial difficulties ____ 11-14, 30, 188
Assumption of deposits of insured banks with financial aid of FDIC
(see also Banks in financial difficulties) ________________ 11-14, 183, 185-188
Attorney General of the United States, summary reports on a b s o rp tio n s ____ 35-67
Audit of F D IC ______________________________________________________________ 32, 34
Bad-debt reserves. See Valuation reserves.
Bank Holding Company Act of 1956, amendments t o ___________________ 24, 74-80
Bank Merger Act of 1960, amendments t o ____________________________23-24, 71-74




192

FEDERAL DEPOSIT INSURANCE CORPORATION
• Page

Bank Supervision. See Supervision of banks; Examination of
insured banks.
Banking data, classification of:
Assets and liabilities of banks _________________________________________

141

Deposit insurance disbursements _______________________________ _______

183

Income of insured b a n k s ________________________________________________

157

Number of banks and branches _____________________________________ 126-127
Banking offices, number of. See Number of banks and branches.
Banks, applications from, acted on by F D IC _______________________________ 15-18
Banks in financial difficulties:
Insured banks requiring disbursements by FDIC:
Deposit size o f _____________________________________________________

186

Deposits protected, 1934-1966 _____________________12-13, 184, 186-187
Disbursements by FDIC, 1934-1966 ______________________ 10-14, 183-188
Loans made and assets purchased by F D IC _______________________ 11-13
Location by State, 1934-1966 ______________________________________

187

Losses incurred by F D IC _____________________________________ 13-14, 188
Losses incurred by depositors ____________________________________ 12-13
Name and location of, 1966 _____________________________________ 11, 185
Number of, 1934-1966 ______________________________ 12-13, 184, 186-187
Number of deposit accounts, 1934-1966 _____________________12, 186-187
Recoveries by FDIC on assets acquired, 1934-1966 __________ 13-14, 188
Noninsured banks:
Number and deposits of com m ercial banks closed, 1934-1966______

184

Suspensions, 1966 ______________________________________________128, 183
Banks, number of. See Number of banks and branches.
Board of Directors of FDIC. See Federal Deposit Insurance Corporation.
Board of Governors of the Federal Reserve System. See Federal Reserve
authorities.
Branches (see also Number of banks and branches):
Establishment approved by FDIC, 1966 _________________________________

15

Examination of, 1965 and 1966 ________________________________________

19

Increase, branches of all banks, 1966 _______________________________ 129-131
Call reports. See Assets, liabilities, and capital of banks;
Reports from banks.
Capital of banks. See Assets, liabilities, and capital of banks; Banks in
financial difficulties; Income of insured com m ercial banks; Examination
of insured banks.
Cease-and-desist authority _____________________________________ 20, 25-26, 97-105
Certificates of deposit (see also Deposits) ____________________________ 9-10, 80-82
Charge-offs by banks. See income of insured com m ercial banks;
Income of insured mutual savings banks; Valuation reserves.
Class of bank, banking data presented by:
A b s o rp tio n s _______________________________________________________ 16-17, 128




INDEX

193

Page
Class of bank, banking data presented by: — Continued
Admissions to and term inations of insurance _______________________ 128-129
Assets and liabilities of insured commercial banks ____________________

150

Income of insured com m ercial banks, 1966 ________________________ 162-163
Insured banks requiring disbursements by FDIC, 1934-1966 ____________

186

Number of banks and banking offices, 1966 _________ 4, 18, 128-129, 132-139
Classification of banks ____________________________________________________126-127
Closed banks. See Banks in financial difficulties.
Commercial banks. See Assets, liabilities, and capital of banks; Deposits;
Income of Insured com m ercial banks; Number of banks and branches.
Com ptroller of the Currency _______________IV-V, 18-19, 25, 27-28, 71-74, 97-105
Conferences with supervisors of State b a n k s _______________________________

23

Consolidations. See Absorptions.
Control of banks, changes in ________________________________________21-24, 71-80
Credit, bank. See also Assets, liabilities, and capital of b a n k s ______________ 5-10
Demand deposits. See Assets, liabilities, and capital of banks; Deposits.
Deposit insurance coverage _________________________________3-5, 26, 34, 105-106
Deposit insurance national banks __________________________________________ 11-12
Deposits, insured by FDIC:
Definition of time and savings deposits ________________________ 106, 117-120
Estimated insured deposits, December 31, 1934-1966 _________________

34

Increase in maximum per depositor ____________________________ 4-5, 26, 105
Multiple maturity _________________________________________________ 9, 114-115
Deposits of: (See also Assets, liabilities, and capital of banks):
All banks:
By insurance status and type of bank, and type of account,
December 31, 1966 ________________________________________________

145

By insurance status and type of bank, and type of account,
June 30, 1966 ______________________________________________________

143

Banks closed because of financial difficulties, 1934-1966 ____________ 183-187
Insured banks, December call dates, 1934-1966 _______________________

34

Insured com m ercial banks:
Average demand and time deposits, 1966, by S ta te ________________ 152-153
Average demand and time deposits, 1958-1966 ______________________

159

By class of bank, December 31, 1966 _________________________________

150

By deposit size of bank, December 31, 1966 __________________________ 151
December call dates, 1962-1966 _____________________________________

148

Insured mutual savings banks:
Average demand and time deposits, 1958-1966 ______________________

179

December call dates, 1962-1966 _____________________________________

148

Sources of data concerning ___________________________________________

141

Deposits, number of insured com m ercial banks with given ratios of
demand to total d e p o s its _________________________________________________
Directors of FDIC. See Federal Deposit Insurance Corporation.




155

194

FEDERAL DEPOSIT INSURANCE CORPORATION
Page

Disbursements, See Banks in financial difficulties.
Dividends:
To depositors in insured mutual savings b a n k s ______________________ 178-180
To stockholders of insured com m ercial banks. See Income of
insured com mercial banks.
Earnings of banks. See Income of insured com m ercial banks; Income
of insured mutual savings banks.
Economic and banking developments in 1966 ______________________________

5-10

Employees:
F D IC __________________________________________

____ 26, 28-29,106-114

Insured com m ercial banks:
Number and compensation, 1958-1966 ____________________________ 158-159
Number and compensation, by class of bank, by size of bank,
and by State, 1966 ___________________________162-163, 164-165, 168-177
Insured mutual savings banks, number and c o m p en sation___________ 178-179
Examination of insured banks:
Banks examined by FDIC, 1966 _______________________________________18-20
District offices and supervising e x a m in e rs ______________________________

VI

Expenses of banks. See Income of insured com m ercial banks;
Income of insured mutual savings banks.
Expenses of FDIC ___________________________________________________________29-32
Failures. See Banks in financial difficulties.
Federal bank supervision __________________________________________ 15-27, 71-106
Federal Deposit Insurance Corporation (FDIC):
Actions on applications ________________________________________________ 15-18
Advertising for funds by insured banks ______________________________ 27, 120
Assessments on insured b a n k s _________________________________________ 29-33
Assets __________________________________________________________________ 29-31
Audit _____________________________ ____________________________________ 32, 34
Banks examined by, and subm itting reports to ________________________ 18-23
Borrowing p o w e r _______________________________________________________

29

Capital s to c k ____________________________________________________________ 30n
Cease-and-desist authority _______________________________ 20, 25-26, 97-105
Coverage of deposit insurance, banks participating ________3-5, 128, 132-139
Deposit insurance fund (surplus) ______________________________________ 29-34
Directors (members of the Board) _____________________________________ V, 28
Disbursements for protection of depositors __________________ 10-14, 183-188
Districts _________________________________________________________________

VI

Divisions ______________________________________________________________ IV, 28
E m ploye es________________________________________________ 26, 28-29, 106-114
Examination of b a n k s _______________________________________________ VI, 18-20
Financial statements, 1966 ______________________________________________30-32
Income and expenses, 1933-1966 _______________________________________31-33
Insured banks requiring disbursements by. See Banks in
financial difficulties.




INDEX

Federal Deposit Insurance Corporation (FDIC): — Continued

195
Page

Liabilities ______________________________________________________________ 20-30
Loans to, and purchase of assets from, insured b a n k s _________ 183, 186-187
Losses incurred, 1934-1966 _______________________________________13-14, 188
Methods of protecting depositors _________________________________10-14, 183
Organization and s ta ff ___________________________________________ IV-VI, 28-29
Payments to insured d e p o s ito rs ______________________________ 10-14, 186-188
R e cove ries________________________________________________________ 12-14, 188
Regulation of interest rates __________________ 7, 9-10, 26-27, 80-82, 114-120
Reports from banks ___________________________________________________ 20-23
Reserve for losses on assets a c q u ire d __________________________________ 30-31
Rules and regulations ________________________________________26-27, 106-120
Sources and uses of fu n d s ______________________________________________

32

Standards of conduct for e m p lo ye e s _____________________________ 26, 106-114
Supervisory activities __________________________________________________ 15-27
Federal Home Loan Bank Board _________________________________10, 24-27, 82-97
Federal Reserve a u th o ritie s ______________6, 9-10, 18-19, 23-25, 27, 71-82, 97-105
Federal Reserve member banks. See Class of bank, banking data
presented by.
Federal Savings and Loan Insurance Corporation ___________________ 26, 105-106
General Accounting O ffic e __________________________________________________

34

Income of F D IC ____________________________________ _ _____________________ 31-33
_
Income of insured com m ercial banks:
Amounts of principal components:
Annually, 1958-1966 ________________________________________158-159, 161
By class of bank, 1966 __________________________________________ 162-163
By size of bank, 1966 ______ _ ________ _ ________________ ___ ....164-165
_
_
By State, 1966 _________________________ __ ____________ ________ 168-177
_ _
Classification of income d a t a _______________ _ ________________________
_

157

Ratios of income items:
Annually, 1958-1966 ____ ______________________ _ _________________
_

160

By size of bank, 1966 ________ _ _____________ _____ ____________ 166-167
_
Sources of d a ta _______________________________________ _ ______________
_

157

Income of insured mutual savings banks:
Amounts of principal components, 1958-1966 __________________ 178-179, 181
Ratios of income and expense items, 1958-1966 _______________________

180

Sources of data _______________________________________________ ___ ____

157

Insolvent banks. See Banks in financial difficulties.
Insurance of bank obligations ___________________________________ 3-5, 26, 34, 105
Insurance status, banks classified by:
Assets and liabilities of, June 30 and December 31, 1966 ____________ 142-145
Changes in number of, 19 66__________________________________________ 128-129
Deposits of, June 30 and December 31, 1966 _______________________ 143, 145
Number of, December 31, 1966 ________________________ 4, 128-129, 132-139
Percentage of banks insured, by State, December 31, 1966 __________ 132-139




FEDERAL DEPOSIT INSURANCE CORPORATION

196

Page
Insured banks. See Assets, liabilities, and capital of banks; Banks in finan­
cial difficulties; Deposits; Income of insured com mercial banks; Income of
insured mutual savings banks; Number of banks and branches.
Insured com m ercial banks not members of the Federal Reserve System.
See Class of bank, banking data presented by.
Insured deposits. See Banks

in financial difficulties; Deposit insurance

coverage.
Insured State banks members of the Federal Reserve System. See Class of
bank, banking data presented by.
Interest rates paid by insured banks:
Authority to regulate amended ____________________________9-10, 24-25, 80-82
Maximum rates revised ________________________________________9-10, 115-116
Mutual savings banks in Alaska _____________________________________ 27, 117
Survey of, by FDIC ___________________________________________________ 22-23
Investments. See Assets, liabilities, and capital of banks; Assets and lia b ili­
ties of FDIC; Banks in financial difficulties.
Legislation relating to deposit insurance and banking:
Federal, enacted in 1966 ______________________________________ 23-26, 71-106
State, enacted in 1966 _______________________________________________121-123
Loans. See Assets, liabilities, and capital of banks; Banks in financial d iffi­
culties.
Losses:
Of banks. See income of insured com m ercial banks; Income of insured
mutual savings banks.
Of FDIC __________________________________________

___ 13-14, 188

On loans, reserves for. See Valuation reserves.
Provision for, in insured banks, 1958-1966 _________________ 158-159, 178-179
Mergers. See Absorptions.
Methods of tabulating banking data. See Banking data, classification of.
Mutual savings banks. See Assets, liabilities, and capital of banks; Deposits;
Income of insured mutual savings banks; Number of banks and branches.
National banks. See Class of bank, banking data presented by.
New banks, 1966 ________________________________________________________ 128-129
Noninsured banks (see also Absorptions; Admission of banks to insurance;
Assets, liabilities, and capital of banks; Banks in financial difficulties;
Classification of banks; Class of bank, banking data presented by; De­
posits; Number of banks and branches; Reports from banks) ____________

4

Number of banks and branches:
Banks:
By insurance status, type of bank, number of branches, and State,
December 31, 1966 _____________________________________

.132-139

By insurance status and type of bank, December 31, 1966

...4, 128

Changes during 1966 _____________________________________

128




197

INDEX

Page

N um ber of banks and branches: — Continued
Branches:
By insurance status, type of bank, and

S tate, D e c e m b e r 31,

1966 ____________________________________________________________ 132-139
C hanges during 1966 ________________________________________________ 129
C om m ercial banks and branches, D ecem ber 31, 1965 and 1966,
by State ________________________________________________________ 130-131
Insured com m ercial banks:
D ecem b er 31, 1958-1966 _________________________________________ 159-160
D ecem b er 31, 1966, by class of bank and deposit size of b a n k __163-165
D ecem ber 31, 1966, by S tate ___________________ 169, 171, 173, 175, 177
D istributed by capital ratios and distribution of assets and deposits,
D ecem ber 31, 1966 _____________________________________________ 154-155
Insured mutual savings banks, D ecem ber 31, 1966 ___________________ 179-180
M utual savings banks, by State, D ecem b er 31, 1966 _________________ 132-139
N oninsured banks, by S tate, D ecem b er 31, 1966 ______________________132-139
Unit banks, by insurance status and S tate, D ecem ber 31, 1966 _______ 132-139
O bligations of banks. See Assets, liabilities, and capital of banks; Deposits.
Officers of insured banks. See Em ployees.
Officials of FD IC _______________________________________________________________V, 28
O perating banks. S ee N um ber of banks and branches.
P aym ents to depositors in closed insured banks. See Banks in financial
difficulties.
Personnel. See Em ployees.
Possesions, banks and branches located in. See A reas outside continental
U nited States, banks and branches located in.
Protection of depositors. See Banks in financial difficulties; Deposit insur­
ance coverage.

R eceivership, insured banks placed in. See Banks in financial difficulties.
R ecoveries:
By banks on assets charged off. See Incom e of insured com m ercial
banks; Incom e of insured mutual savings banks.
By FD IC on disbursem ents. See Banks in financial difficulties.
Reports from banks ________________________________________________20-23, 141, 157
Reserves:
Of FD IC , for losses on assets a c q u ir e d __________________________________

30

Of insured banks for losses on assets. See V aluation reserves.
W ith Federal R eserve Banks. See Assets, liabilities, and capital of banks.
S alaries and w ages:
FD IC ______________________________________________________________________

31

Insured banks. S ee incom e of insured com m ercial banks; Incom e of
insured m utual savings banks.
Savings and loan associations _______________________________________ 10, 25, 82-97




FEDERAL DEPOSIT INSURANCE CORPORATION

198

Page

Securities. See Assets, liabilities, and capital of banks; Assets and lia b ili­
ties of FDIC; Banks in financial difficulties.
Securities, registration and reporting of b a n k _______________________________ 20-21
Size of bank, data for banks classified by amount of deposits:
Assets and liabilities, insured com m ercial banks, 1966 ________________

151

Banks requiring disbursements by FDIC, 1934-1966 ____________________

186

Disbursements for protection of depositors, 1934-1966 ________________

186

Income data of insured com m ercial banks, 1966 _____________________ 164-165
Income ratios of insured commercial banks, 1966 __________________ 166-167
Number of employees of insured com m ercial banks, 1966 ____________

165

Number of insured com m ercial banks, 1966 ________________________ 165-167
Number of insured com m ercial banks, grouped by ratios of selected
items to assets and deposits, December 31, 1966 _________________ 154-155
Standards of conduct for FDIC e m p lo ye e s____________________________ 26, 106-114
State, banking data classified by:
Assets and liabilities of insured commercial banks, average, 1966 ___ 152-153
Disbursements, deposits, and depositors in insured banks requiring dis­
bursements by FDIC, 1934-1966 ____ ______________________________ 187
Income of insured com m ercial banks, 1966 _____________ ____________ 168-177
Number of banks and branches, by class of bank and type of office,
December 31, 1966 _____ _ _________________ ___ _________________132-139
_
Percentage of banks insured, December 31, 1966 __________________ 132-139
State banking legislation enacted in 1966 _________ ______ _______________..121-123

State banks. See Class of bank, banking d ata presented by.
S tockholders of banks, net profits available for. S ee Incom e of insured
com m ercial banks.
Supervision of banks (see also Exam ination of insured banks):
By FD IC _______ _____________ ____ _______ ___________ ______ _______ _____V I, 15-27
Federal legislation __________ ____ _____ __________________ _______ 20-26, 71-106
S tate legislation, 1966 .................................... ............................................................. 121-123
Suspensions. See Banks in financial difficulties.
Taxes paid by insured banks. See Incom e of insured com m ercial banks;
Incom e of insured mutual savings banks.
Term inations of insurance for unsafe and unsound p r a c tic e s ............................... 20-21
T im e and savings deposits. See also Deposits ............................. ...7-10, 24-25, 80-82
Unit banks, by insurance status and S tate, D e c e m b e r 31, 1966 ......... ......... 132-139
Unsafe and unsound banking p ra c tic e s ..............................................20-21, 25-26, 82-105
V aluation reserves (see also Assets, liabilities, and capital of banks):
Am ounts held, June 30 and D ecem b er 31, 1966 ____________ ___ ____ 142, 144
A m ounts held. D ecem ber call dates, 1958-1966 ____________ 158-159, 178-179
V iolations of law or regulations, banks charged w it h _________ 20-21, 25-26, 97-105





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