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ANNUAL REPORT OF THE
FEDERAL DEPOSIT INSURANCE CORPORATION

1969

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

FEDERAL DEPOSIT INSURANCE CORPORATION
Washington, D. C., March 9, 1970

SIRS: Pursuant to the provisions o f Section 17 (a) o f the Federal Deposit
Insurance Act, the Federal Deposit Insurance Corporation is pleased to submit
its report for the calendar year 1969.
Respectfully yours,

Chairman

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

iii

F E D E R A L D E P O S I T IN S U R A N C E C O R P O R A T IO N

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

BOARD OF DIRECTORS
C h airm an ----------------------------------- ---------- ----------------- K. A. Randall
D ire c to r------------------------------------------------------------Irvine H. Sprague
Comptroller of the C urrency----------------------------------William B. Camp

OFFICIALS
Assistant to the Chairman —

------------------- ------ John L. Flannery

Special Assistant to the C h airm an ----------------------------------- Lynn Mah
Special Assistant to the Chairman
for M utual Savings B a n k s ----------------------- — — Raymond T. Cahill
Assistant to the D ire c to r-------------------- --------- — -—

Alan R. Miller

Special Assistant to the Director —----------- ---------------- John F. Burby
Assistant to the Director
(C o m p tro lle r o f th e C u r r e n c y ) -------------------------------Albert

J. Faulstich

Director, Division of Bank Supervision------------------- John L. Flannery
Associate Director, Division of Bank Supervision------Edward J. Roddy
General C o unsel----------------------------------------------------Leslie H. Fisher
C o n tro ller----------------------------------------------------Edward F. Phelps, Jr.
Director, Division of R esearch--------------------------------Paul M. Horvitz
Chief, Division of L iq uidatio n------------------ ------------- - John J. Slocum
S e creta ry---------------------------------------------------------------- E. F. Downey
Auditor (A c tin g )-------------------------------------------------John D. Roderick
Senior Advisor to the B o a rd --------------------------- Raymond E. Hengren
Executive Assistant to the B o a rd --------------- — Timothy J. Reardon, Jr.
Assistant to the B o a rd ------------------------------------ William M. Moroney
Special Assistant to the B o a rd ......... .................... Edward H. DeHority

March 9, 1970
V

FEDERAL DEPOSIT INSURANCE CORPORATION REGIONS

REGIONAL

DIRECTORS

A tlanta

Memphis

Lewis C. Beasley
Two Peachtree St., N.W.Suite 3030
Atlanta, Georgia 30303
Boston

Minneapolis

Mark J. Laverick
Two Center Plaza, Room 810
Boston, Massachusetts 02108
Chicago

Roger B. West
109 South 7th Street, Suite 710
Minneapolis, Minnesota 55402
New Y o rk

John J. Early
164
West Jackson Blvd., Rm. 1500
Chicago, Illinois 60604
Columbus

Claude C. Phillippe
345 Park Avenue
New York, New York 10022
Philadelphia

William D. Allen
37 West Broad Street, Suite 600
Columbus, Ohio 43215
Dallas

Charles E. Doster
630 Chestnut Street, Suite 972
Philadelphia, Pennsylvania 19106
Richmond

Quinton Thompson
300 North Ervay Street,Suite 3300
Dallas, Texas 75201
Kansas C ity

Albert E. Clark
908 E. Main Street, Suite 435
Richmond, Virginia 23219
St. Louis

Stanley Pugh
925 Grand Avenue, Room 1708
Kansas City, Missouri 64106
Madison

John Stathos
720 Olive Street, Suite 2909
St. Louis, Missouri 63101
San Francisco

Wallace A. Ryen
110 E. Main Street, Room 715
Madison, Wisconsin 53703

FEDERAL

James W. Thompson
165
Madison Avenue, Suite 1010
Memphis, Tennessee 38103

DEPOSIT

Walter W. Smith
44 Montgomery Street, Suite 3600
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

CONTENTS
Page

PART ONE
BANKING DEVELOPMENTS
Bank performance in 196 9________________________________

Federal legislation________________________________________

PART TWO
OPERATIONS OF THE CORPORATION
Disbursements to protect depositors________________________

Supervisory activities______________________________________

Administration of the Corporation___________________________

Finances of the Corporation_______________________________

Rules and regulations of the Corporation____________________

PART THREE
LEGISLATION AND REGULATIONS
Federal banking legislation— 1969_________________________

139

Rules and regulations of the Corporation— 1969_____________

170

State banking legislation— 1969___________________________

218

PART FOUR
STATISTICS OF BANKS AND DEPOSIT INSURANCE
Number of banks and branches____________________________ 236
Assets and liabilities of banks--------------------------------------------- 252
Income of insured banks___________________________________ 274
Banks closed because of financial difficulties;
deposit insurance disbursements________________________ 288

vii

LIST OF TABLES

Page
DISBURSEMENTS TO PROTECT DEPOSITORS:
1.

Insured banks closed during 1969 requiring disbursements by the
Federal Deposit Insurance C orporation____________________________

Protection of depositors of insured banks requiring disbursements by
the Federal Deposit Insurance Corporation, 1934-1969 _____________

3. Analysis of disbursements, recoveries, and losses in deposit insurance
transactions, January 1, 1934-December 31, 1969 _______________

SUPERVISORY ACTIVITIES:
4.

Bank examination activities of the Federal Deposit Insurance Cor
poration in 1968 and 1969 ______________________________________

Actions to terminate insured status of banks charged with unsafe or
unsound banking practices or violations of law or regulations,
1936-1969 _________________________ _____________________________

Mergers, consolidations, acquisitions of assets and assumptions of
liabilities approved under section 18(c) of the Federal Deposit
Insurance Act during 1969 __________________________________ ____

Approvals under section 18(c) of the Federal Deposit Insurance Act
during 1969— banks grouped by size and in States according to
status of branch b a n k in g _______________________________________

Description of each merger, consolidation, acquisition of assets or
assumption of liabilities approved by the Corporation during 1969___

15.

ADMINISTRATION OF THE CORPORATION:
8.

Number of officers and employees of the Federal Deposit Insurance
Corporation, December 31, 1968 and 1969 ______________________

FINANCES OF THE CORPORATION:
9.
10.
11.
12.
13.

14.

Statement of financial condition, Federal Deposit Insurance Corpora
tion, December 31, 1969 _______________________________________

Statement pf income and the deposit insurance fund, Federal Deposit
Insurance Corporation, year ended December 31, 1969 __________

Determination and distribution of net assessment income, Federal
Deposit Insurance Corporation, year ended December 31, 1 9 6 9 ____

Sources and application of funds, Federal Deposit Insurance Corpora
tion, year ended December 31, 1969 ____________________________

Income and expenses, Federal Deposit Insurance Corporation, by
year, from beginning of operations, September 11, 1933, to
December 31, 1969, adjusted to December 31, 1969 ______________

Insured deposits and the deposit insurance fund, 1934-1969 ________

viii

NUMBER OF BANKS AND BRANCHES:

Page

Explanatory n o t e _________________________________________________________ 236
101.

Changes in number and classification of banks and branches in the
United States (States and other areas) during 1969 _______________ 238

102.

Changes in number of commercial banks and branches in the United
States (States and other areas) during 1969, by S ta te ____________240

103.

Number of banking offices in the United States (States and other
areas), December 31, 1969
Grouped according to insurance status and class of bank, and
by State or area and type of o ffic e ______________________________ 242

104.

Number and deposits of all commercial and mutual savings banks
(States and other areas), December 31, 1969
Banks grouped by class and deposit s iz e _______________________251

ASSETS AND LIABILITIES OF BANKS:
Explanatory n o te _________________________________________________________ 252
105.

Assets and liabilities of all commercial banks in the United States
(States and other areas), June 30, 1969
Banks grouped by insurance status and class of b a n k __________ 254

106.

Assets and liabilities of all commercial banks in the United States
(States and other areas), December 31, 1969
Banks grouped by insurance status and class of b a n k __________ 258

107.

Assets and liabilities of all mutual savings banks in the United States
(States and other areas), December 31, 1969
Banks grouped by insurance s ta tu s ____________________________ 262

108.

Assets and liabilities of insured commercial banks in the United States
(States and other areas), December call dates, 1961, 1965-1969 264

109.

Assets and liabilities of insured mutual savings banks in the United
States (States and other areas), December call dates, 1961, 19651969 ____________________________________________________________ 267

110.

Percentages of assets and liabilities of insured commercial banks
operating throughout 1969 in the United States (States and other
areas), December 31, 1969
Banks grouped by amount of d e p o s its_________________________ 269

111.

Percentages of assets and liabilities of insured mutual savings banks
operating throughout 1969 in the United States (States and other
areas), December 31, 1969
Banks grouped by amount of d eposits__________________________ 270

112.

Distribution of insured commercial banks in the United States (States
and other areas), December 31, 1969
Banks grouped according to amount of deposits and by ratios of
selected items to assets or d e p o sits______________________________ 271

INCOME OF INSURED BANKS:
Explanatory n o te _________________________________________________________ 274
113.

Income of insured commercial banks in the United States (States and
other areas), 1961-1969 _________________________________________ 276

114.

Page
Ratios of income of insured commercial banks in the United States
(States and other areas), 1961-1969 _____________________________ 278

115.

Income of insured commercial banks in the United States (States and
other areas), 1969
Banks grouped by class of b a n k _______________________________ 279

116.

Income of insured commercial banks operating throughout 1969 in the
United States (States and other areas)
Banks grouped by amount of d e p o s its _________________________ 281

117.

Ratios of income of insured commercial banks operating throughout
1969 in the United States (States and other areas)
Banks grouped according to amount of d e p o s its _______________ 283

118.

Income of insured mutual savings banks in the United States (States
and other areas), 1961-1969 _____________________________________ 285

119.

Ratios of income of insured mutual savings banks in United States
(States and other areas), 1961-1969 ____________________________ 287

BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES;
DEPOSIT INSURANCE DISBURSEMENTS:
Explanatory note _________________________________________________________ 288
120.

Number and deposits of banks closed because of financial difficulties,
1934-1969 _______________________________________________________ 290

121.

Insured banks requiring disbursements by the Federal Deposit Insur
ance Corporation during 1969 ___________________________________ 291

122.

Depositors, deposits, and disbursements in insured banks requiring
disbursements by the Federal Deposit Insurance Corporation, 19341969
Banks grouped by class of bank, year of deposit payoff or deposit
assumption, amount of deposits, and S ta te _______________________293

123.

Recoveries and losses by the Federal Deposit Insurance Corporation
on principal disbursements for protection of depositors, 19341969 ____________________________________________________________ 296

BANKING DEVELOPMENTS
PART ONE

Banks operated in an environment in 1969 that was dominated
by upward pressure on prices, wages, and interest rates. While the
economy continued to operate at virtually full employment, practically
no growth in real output occurred. Most of the dollar increase in
gross national product was accounted for by a more than 5 percent
rise in prices.
Strong credit demands from the private sector and very restrictive
monetary policy combined to produce extremely tight conditions in
financial markets. As a result, interest rates, which were relatively
high at the beginning of 1969, rose throughout the year and reached
the highest levels of the century. Average yields on corporate and
municipal securities increased by more than 2 percentage points in
1969. The commercial bank prime rate was raised three times during
the first half of 1969, reaching 8 V2 percent in June, where it remained
throughout the year.
BANK PERFORMANCE IN 1969
Balance sheet changes. Money market rates moved up sharply
throughout the year while interest ceilings on time and savings
deposits remained unchanged. As a result, the relative attractiveness
of bank time deposits diminished significantly and some banks experi
enced substantial outflows of these deposits. The amount of large
denomination negotiable certificates of deposit at weekly reporting
banks declined by approximately $12 billion in 1969 as the spread
between the prevailing 6*4 percent ceiling on large denomination
CD's and comparable money market instruments approached 2 per
centage points by the latter part of 1969.
Gains in consumer CD’s were modest compared with the in
creases experienced in recent years; as a result, total time deposits of
insured commercial banks declined by almost $10 billion.
Total demand deposits increased by about $11 billion, enabling
insured commercial banks to post a slight deposit increase for the
year. Total assets increased by about 5 percent in 1969, to a yearend level of $531 billion (the amount of the increase is overstated
somewhat by changes in reporting requirements; see notes to tables
in Part 4). A considerable portion of the increase in bank resources
was financed by borrowing through Federal funds, Eurodollars, and
other sources. This was most pronounced among larger banks seeking
to replace funds lost through the attrition of large denomination CD’s.
Loans at insured commercial banks increased by about $25 billion
(more than 9 percent). This loan increase occurred although changes

FEDERAL DEPOSIT INSURANCE CORPORATION

in the deposit mix plus increased reserve requirements on demand
deposits had the effect of reducing considerably the volume of funds
available for acquiring earning assets. In addition to increased borrow
ing, banks financed a substantial portion of their loan acquisitions in
1969 through reducing investments by almost $10 billion.
Most major loan categories contributed to the 1969 loan increase.
Testimony to the proliferation of bank credit cards and the growth in
their use was a $1.6 billion (76 percent) increase in credit card and
check credit loans outstanding in 1969.
Bank earnings. Total operating income of insured commercial
banks increased by 21 percent in 1969, reflecting a moderate growth
in earning assets and a significant rise in the average rate of return
on assets. The ratio of operating income to average assets of banks
rose to 5.97 percent, an increase of approximately 59 basis points
over the comparable ratio for 1968. Loan income grew by about 26
percent as the average rate of return on loans increased to 7.60
percent.
The 1969 income report for insured commercial banks was sub
stantially revised; as a result, figures on expenses and net income
are not precisely comparable to those of previous years. In prior
years, provision for loan losses was not treated as an operating ex
pense. If data were adjusted to account for this, the year-to-year in
crease in operating expenses would amount to about 20 percent, a
figure approximately in line with the one for operating income.
Despite the reduction in outstanding time deposits, the interest
cost on time and savings deposits rose by 12.7 percent. The interest
cost of borrowed funds grew by more than $1 billion, or more than
200 percent, bringing the increase in interest cost for both categories
to over 24 percent.
Net current operating earnings of insured commercial banks were
$4,565 million in 1969. This figure reflects taxes on operating earn
ings, calculated before “ below the line” charges against earnings from
such items as security losses, extraordinary income or expenses, and
excess of transfers to bad-debt reserves in excess of the item carried
under operating expenses. No comparable figures for previous years
exist for after-tax current operating earnings, but if 1968 figures were
adjusted accordingly, the year-to-year gain would be approximately in
line with the percentage increase in total operating income.
Banks experienced net security losses of $512 million (before tax
credits) in 1969, slightly in excess of losses realized in 1968 but
modest compared with the unrealized decline in bank investment
values resulting from the substantial increase in interest rates in 1969.
Net income of insured commercial banks was $4,334 million in
1969, approximately 0.84 percent of average outstanding assets and
11.34 percent of average capital accounts. While the figure for net

BANK PERFORMANCE IN 1969

income is not fully comparable to the statistics reported for previous
years, it is relatively close, and the ratios for 1969 compare favorably
with figures for the previous decade. Dividend payments, about 40
percent of net income, were up 18 percent from 1968.
In summary, the combination of high and rising interest rates,
along with restrictions on the ability of banks to compete for deposits,
placed banks in a very tight liquidity position in 1969 and reduced
considerably the market value of bank security portfolios. The same
forces enabled banks to increase substantially their rate of return
on assets and capital accounts.
Mutual savings banks. The same economic and policy variables
affected mutual savings banks in 1969; therefore, their deposits in
creased by only $2.6 billion, 4 percent. This was well below deposit
gains experienced during each of the two previous years, and it was
the first time in recent history that the net deposit increase at savings
banks was less than total interest payments on deposits.
Current operating income of FDIC-insured savings banks increased
by more than 10 percent, reflecting the investment of new funds and
internally generated cash in substantially higher-yielding assets. As
a consequence, the gross yield of FDIC-insured savings banks on aver
age outstanding assets increased by about 24 basis points, from
5.42 percent in 1968 to 5.66 percent in 1969. The increase in inter
est payments on deposits was more modest, as the rate paid on aver
age outstanding time and savings deposits increased from about 4.83
percent to 4.90 percent. Thus, net current operating income after
taxes and dividends increased by more than 40 percent, and net rate
of return on average outstanding assets increased from about 0.32
percent, in 1968, to approximately 0.42 percent, in 1969.
FDIC-insured mutual savings banks realized significantly higher
losses on sales of securities and mortgages in 1969. As a result of
these below-the-line transactions, the net addition to surplus from
operations was somewhat less in 1969 than it was in 1968. The total
surplus accounts of all savings banks increased by about 4.8 percent
in 1969, slightly more than the rise in total assets.
Number of banks and branches. On December 31, 1969, a total of
14,178 banks— including 13,681 commercial and 497 mutual sav
ings— were operating in the United States. There were 17 fewer com
mercial banks and 4 fewer mutual savings banks than at the end of
1968. The overall figure for branches of all banks rose during the year,
by 1,273, of which 1,196 were branches of commercial banks. The
total number of banking offices— 35,582 on December 31, 1969—
was 1,252 more than at year-end 1968.
The number of insured commercial banks declined by 15 during the
year, as decreases of 47 national banks and 60 State member banks

FEDERAL DEPOSIT INSURANCE CORPORATION

more than offset an addition of 92 insured nonmember banks. During
the year, 18 noninsured banks converted to insured status, with 16
becoming nonmember insured banks and two becoming State member
banks. Changes in number of banks and branches during 1969 are
shown in Table 101 of this report.
FEDERAL LEGISLATION
Regulation of interest rates. Little legislation of interest to the
banking industry was enacted during the first session of the 91st
Congress until the closing days of 1969, when several important
measures were approved. Notably, the Act of December 23, 1969 (83
Stat. 371), extends for an additional 15-month period— through March
21, 1971— the statutory flexible authority of the Board of Governors
of the Federal Reserve System, the Board of Directors of the Federal
Deposit Insurance Corporation, and the Federal Home Loan Bank
Board for regulating interest and dividend rates payable by insured
banks on time and savings deposits and by members of the Federal
Home Loan Bank System on deposits, shares, or withdrawable ac
counts.
The act temporarily authorizes the Corporation’s Board of Directors
and the Federal Home Loan Bank Board to subject certain noninsured
banks (including noninsured mutual savings banks) and certain non
member building and loan, savings and loan, and homestead associ
ations (including cooperative banks) to interest- and dividend-rate
controls essentially comparable to those applicable to insured
banks and to members of the Federal Home Loan Bank System.
The authority expires at the close of March 21, 1971, unless it
is extended by a subsequent act of Congress. The authority can only
be exercised with respect to noninsured institutions located in a
State where the total amount of deposits and shares in those institu
tions exceeds 20 percent of the total amount of deposits and shares
in all designated financial institutions in the State and where the
State supervisory authority is not authorized by State laws to regulate
the rates of interest or dividends payable by noninsured institutions
or, if it is so authorized, has not issued regulations in the exercise of
that authority. The effect of these conditions is to limit the applica
bility of the law to Massachusetts. Before July 31, 1970, the authority
can only be exercised by the Corporation’s Board of Directors and
by the Federal Home Loan Bank Board to limit the rates of interest
or dividends payable by noninsured institutions to maximum rates
not lower than 5 V2 percent per annum.
In addition to prohibiting the payment of dividends as well as inter
est on demand deposits, the act extends the Corporation’s authority
to regulate interest and dividend rates payable by insured nonmember

FEDERAL LEGISLATION

banks, at the discretion of the Corporation’s Board of Directors, to
obligations other than deposits that are undertaken by insured non
member banks or their affiliates to obtain funds to be used in the
banking business. Similarly, the act clarifies the authority of the Board
of Governors of the Federal Reserve System to determine what types
of obligations, whether issued directly by a member bank or indirectly
by an affiliate of a member bank, or by other means, shall be deemed
a deposit for the purposes of statutes and regulations that relate to
the payment of interest or dividends on time and savings deposits by
member banks of the Federal Reserve System.
Increase in deposit insurance coverage. In addition to extending the
statutory flexible authority for regulating interest and dividend rates,
the Act of December 23, 1969 (83 Stat. 371), increased from $15,000
to $20,000 the maximum amount of insurance coverage provided by
the Federal Deposit Insurance Corporation and by the Federal Sav
ings and Loan Insurance Corporation. The increase in insurance cover
age is not applicable to any claim arising out of the closing of an
insured bank or institution before December 23, 1969.
State taxation of national banks. Legislation to clarify the liability
of national banks for certain taxes was approved by the President on
December 24, 1969. The Act of December 24, 1969 (83 Stat. 434),
gradually equalizes the tax treatment of State and national banks so
that by January 1, 1972, for any tax law enacted under authority of
the United States or any State, a national bank will be treated as a
bank organized and existing under the laws of the State or other juris
diction within which its principal office is located. During the interim
period, a State, or political subdivision thereof, generally may apply
the same tax rules to locally headquartered national banks that it now
does to State banks. Moreover, with some restrictions, States and
their political subdivisions may impose certain specified taxes of their
own on national banks not having their principal offices within the
taxing jurisdiction. For example, nondomiciliary States and their
political subdivisions may impose taxes on the following if they occur
within the area’s jurisdiction: (1) purchases, sales, and use, (2) real
property or its occupancy, (3) execution, delivery, or recordation of
documents (this includes documentary stamp taxes), (4) tangible
personal property (not including cash or currency), and (5) ownership,
use, or transfer of tangible personal property. The act prohibits States
from imposing any sales or use taxes on tangible personal property
which was the subject matter of a written contract of purchase entered
into before September 1, 1969.
Tax Reform Act of 1969. On December 30, 1969, the President
approved the Tax Reform Act of 1969 (83 Stat. 487). The act is
important to the banking industry because, in addition to other pro

FEDERAL DEPOSIT INSURANCE CORPORATION

visions (see Part 3 of this report), it alters the tax treatment accorded
the bad-debt reserves of financial institutions.
Under prior revenue rulings, commercial banks generally were al
lowed to build up bad-debt reserves equal to 2.4 percent of their out
standing loans not insured by the Federal Government. Under the
provisions of section 431 of the Tax Reform Act of 1969 (83 Stat.
616), commercial banks may add to their bad-debt reserves only an
amount necessary to increase the balance of their reserves for losses
on eligible loans at the close of each taxable year to 1.8 percent for
taxable years beginning after July 11, 1969, but before 1976, to 1.2
percent for taxable years beginning after 1975 but before 1982, and
to 0.6 percent for taxable years beginning after 1981 but before 1988.
For taxable years beginning before 1988 a bank may, and for taxable
years beginning after 1987 a bank must, compute additions to its baddebt reserve on the basis of its actual loss experience as indicated by
losses for the taxable year and the 5 preceding years. If the bad-debt
reserve at the close of any base year is less than the allowable per
centage, no more than one-fifth of the difference may be added to the
reserve for losses in any 1 year. If the reserve at the close of any
base year equals or exceeds the allowable percentage, a bank need
not reduce its bad-debt reserve but may add thereto only the amount
necessary to increase the balance of the reserve at the close of the
taxable year to the allowable percentage or to the balance of the
reserve at the close of the base year, whichever is greater. The act
allows commercial banks to carry back net operating losses for 10
years and to carry forward net operating losses for 5 years.
Before enactment of the Tax Reform Act of 1969, mutual savings
banks and savings and loan associations were permitted to compute
additions to their bad-debt reserves on the basis of actual experience
or under either of two alternative formulas. These alternatives included
deducting 60 percent of taxable income or deducting 3 percent of
qualifying real property loans. The act repeals the 3-percent method
of computation and reduces the 60-percent method of computation
to 40 percent over a 10-year period. Additionally, the act subjects
mutual savings banks as well as savings and loan associations to
investment standards in order to qualify for the special deduction.
Text of statutes. The text of pertinent provisions of the foregoing
statutes, together with a summary of significant State banking legisla
tion enacted during 1969, is presented in Part 3 of this report.

OPERATIONS OF THE CORPORATION
PART TWO

DISBURSEMENTS TO PROTECT DEPOSITORS
Banks failing in 1969. The Corporation disbursed $26 million
during 1969 to protect depositors of nine insured banks in serious
financial difficulty (see Table 1). Four of the banks with deposits total
ing $9 million were placed in receivership and payments were made,
directly by the Corporation, in amounts up to the $15,000 insurance
limit prevailing at the time. Depositors in the other five banks were
protected in full when sound operating banks assumed $31 million of
deposit liabilities of the failing banks. For the most part, the nine
failures resulted from financial irregularities rather than adverse local
economic conditions. The irregularities included forged or fictitious
notes, loans to self-serving officials, poor judgment and lax collection
policies, speculative real estate loans, and shortages in loan income
Table 1. INSURED BANKS CLOSED DURING 1969 REQUIRING
DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION'

Case
number

Name and
location

Date of
closing
or deposit
assumption

Total

Amount
Date of first pay
of de
Number posits
ment to depositors
of de (in thou or disbursement by
positors sands)2
FDIC

Deposi
tors re
ceiving
fu ll re
covery

Deposits
paid
(in thou
sands)2

27,363

$40,120

26,422

$39,483

2,343

2,300

1,878

2,152

Deposit payoff
284

Citizens State Bank,
Alvarado, Texas

285

April 12, 1969

April 18, 1969

The First State Bank,
Dodson, Texas

May 12, 1969

688

1,085

May 14, 1969

618

1,039

286

The State National Bank,
Lovelady, Texas

May 28, 1969

2,030

3,814

June 2, 1969

1,832

3,453

287

First National Bank of Ursa,
Ursa, Illinois

August 20, 1969

1,472

1,799

August 25, 1969

1,264

1,717

Deposit assum ption
194

The Rocky Mountain Bank,
Lakewood, Colorado

February 6, 1969

6,716

8,065

February 6, 1969

6,716

8,065

195

The Morrice State Bank,
Morrice, Michigan

May 6, 1969

1,759

2,167

May 6, 1969

1,759

2,167

196

The Big Lake State Bank,
Big Lake, Texas

August 22, 1969

2,642

4,426

September 2, 1969

2,642

4,426

197

The First State Bank,
Aransas Pass, Texas

September 5, 1969

6,459

10,472

September 8, 1969

6,459

10,472

198

The First National Bank
of Coalville,
Coalville, Utah

October 10, 1969

3,254

5,992

October 10, 1969

3,254

5,992

1 Figures adjusted to and as of December 31, 1969.
2 Includes $7,393 thousand paid by FDIC claim agents in deposit payoff cases. All deposits were made available in
fu ll through assuming banks, with FDIC assistance, in deposit assumption cases.

accounts and excessive charges to expense accounts. Since the
beginning of Federal deposit insurance, the Corporation has made
disbursements to protect depositors in 482 failing banks. The approxi
mately 1.7 million depositors (or accounts) in these banks held total

FEDERAL DEPOSIT INSURANCE CORPORATION

deposits of about $879 million (see Table 2). Data on the extent and
method of deposit insurance protection are shown in Table 3.
Deposit insurance participation and coverage. Effective December
23, 1969, the maximum amount of insurance per depositor was in
creased from $15,000 to $20,000. Set first at $2,500, the insurance
maximum was raised to $5,000 in mid-1934, to $10,000 in 1950, and
to $15,000 on October 16, 1966. The maximum applies to the aggre
gate of deposits held in the same right and capacity in an insured bank.
Since the inception of Federal deposit insurance, the proportion
of all operating banks covered has been high; at the end of 1969 over
97 percent of all operating banks in the United States were insured
by the Corporation. The noninsured banks included 208 commercial
Table 2. PROTECTION OF DEPOSITORS OF INSURED BANKS REQUIRING
DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,
1934-1969

All cases
(482 banks)

Deposit payoff
cases
(284 banks)

Deposit
assumption cases
(198 banks)

Item
Number
or
amount
Number of depositors or accounts— to ta l1................ 1,672,804
F ull recovery received or a v a ila b le ........................ 1,668,416
From FDIC2................................................................... 1,622,535
39,999
From offset4 ..................................................................
3,008
From security or preference5.....................................
2,874
From asset liquidation6...............................................
Full recovery not received as of December 31,
1969...............................................................................
Terminated cases.........................................................
Active cases..................................................................

Percent

Number
or
amount

100.0
99.7
97.0
2.4
0.2
0.1

508,525
504,137
458,2563
39,999
3,000
2,874

Percent

100.0
99.1
90.1
7.9

Number
or
amount

Percent

1,164,279
1,164,279
1,164,279

100.0
100.0
100.0

0.6
0.5

4,388
3,312
1,076

0.3

4,388

0.2
0.1

3,312
1,076

0.9
0.7
0.2

A m ount of deposits (in thousands)— t o t a l.................

878,831

100.0

$254,936

100.0

623,895

100.0

Paid or made a v a ila b le ................................................

864,445
795,328
13,494
27,076

98.4

94.4
67.3

623,895
623,895

100.0
100.0

By asset liquidation10..................................................

28,547

3.3

240,550
171,4337
13,494
27,076
28,547

Not paid as of December 31, 1969............................
Terminated cases.........................................................

14,386
1,866

1.6
0.2

14,386
1,866

Active cases11................................................................

12,520

1.4

12,520

By FDIC2.......................................................................
By offset8.......................................................................
By security or preference9..........................................

90.5
1.5
3.1

5.3
10.6
11.2
5.6
0.7
4.9

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 $247,653 thousand, in deposit assumption cases.
3 Includes 58,755 depositors in terminated cases who failed to claim their insured deposits (see note 7).
4 Includes only depositors with claims offset in fu ll; most of these would have been fu lly 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 Includes $212 thousand unclaimed insured deposits in terminated cases (see note 3).
8 Includes all amounts paid by offset.
9 Includes all secured and preferred claims paid from asset liquidation; excludes secured and preferred claims paid
by the Corporation.
10 Includes unclaimed deposits paid to authorized public custodians.
11 Includes $12,520 thousand representing deposits available, expected through offset or expected from proceeds of
liquidations; and $33 thousand representing up to $10,000 of each of certain certificates of deposit whose insured status is
in litigation.

DISBURSEMENTS TO PROTECT DEPOSITORS

Table 3. ANALYSIS OF DISBURSEMENTS, RECOVERIES, AND LOSSES
IN DEPOSIT INSURANCE TRANSACTIONS,
JANUARY 1, 1934-DECEMBER 31, 1969
(In thousands)
Type of disbursement

Disbursements

Recoveries1

A ll disbursem ents— t o t a l..............................................................................

$475,057

$419,327

$55,730

418,969

367,289

51,680

247,653

210,500
13,082

24,071

170,829
487

134,572
9,135

27,609

4,266

P rin c ip a l disbursem ents in deposit assum ption and payoff
cases— t o t a l..........................................................................................
Assets acquired under agreements with insured banks (198 deposit
assumption cases):
To December 31, 1969...........................................................................
Estimated additional..............................................................................
Deposits paid (284 deposit payoff cases):
To December 31,1969...........................................................................
Estimated additional..............................................................................
Advances and expenses in deposit assum ption and payo ff cases—
t o ta l.............................................................................................................
Expenses in liquidating assets:
Advances to protect assets...................................................................
Liquidation expenses............................................................................
Insurance expenses...............................................................................
Field payoff and other insurance expenses in 284 deposit payoff cases
O ther disbursem ents—t o ta l.....................................................................
Assets purchased to facilitate termination of liquidations:
To December 31, 1969..........................................................................
Estimated additional..............................................................................
Unallocated insurance expenses..............................................................

Losses

53,865

49,599

33,810
15,789
1,066
3,200

33,810
15,789
(2)

2,223

2,439

(216)

1,773

2,424
15
(2)

(666)

450

1,066
3,200

450

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

L : > _ |Q

7 q

banks and nondeposit trust companies and 166 mutual savings banks,
virtually all of the latter being located in Massachusetts and covered
by its deposit insurance system.
All except a small percentage of accounts in FDIC-insured banks
have remained fully covered under the successively higher limits of
Federal deposit insurance. Based upon data from the Corporation’s
most recent survey of deposits, it is estimated that 99.1 percent of
accounts in insured banks on December 31, 1969, were within the
insurance maximum of $20,000. Because the average size of a small
proportion of accounts greatly exceeds the insurance limit per de
positor, the percentage of insured deposits to total deposits in insured
banks is substantially less than the proportion of fully covered ac
counts.
Of deposits totaling $495.9 billion in insured banks on December
31, 1969, an estimated $313.1 billion, or 63.1 percent, were insured.
This figure is about $16 billion greater than the estimated amount
which would have been covered had the insurance maximum remained
at $15,000.
SUPERVISORY ACTIVITIES
Bank examinations. The Corporation may examine any insured bank
for insurance purposes; however, to avoid duplicating the activity of
other Federal bank supervisory agencies, the Corporation utilizes the
reports of examinations conducted by those agencies. The banks that

FEDERAL DEPOSIT INSURANCE CORPORATION

are subject to regular examination by the Corporation comprise about
57 percent of all insured banks in the United States and 27 percent
of the assets of these banks. To further reduce the burden for banks
and supervisory authorities, the Corporation’s examinations are con
ducted jointly or concurrently, in over one-half of the States, with
those of the State authorities.
Field examinations and investigations in connection with insurance,
branch, and merger applications, conducted by the Corporation during
1969, totaled 16,412, including 7,637 examinations of main offices
(see Table 4). The total was about 6 percent more than it was in 1968.
In recent years, examinations of departments and branches have ac
counted for just over one-third of the total, and investigations for about
14 percent.
Table 4. BANK EXAMINATION ACTIVITIES OF
THE FEDERAL DEPOSIT INSURANCE CORPORATION
IN 1968 AND 1969
Number
Activity
1969

1968

Field exam in ations and in v e s tig a tio n s — t o ta l................................................................

16,412

15,483

E xam inations of main o ffic e s — t o ta l.............................................................................
Regular examinations of insured banks not members of Federal Reserve System..
Re-examinations; or other than regular exam inations................................................
Entrance examinations of operating noninsured banks...............................................
Special exam inations........................................................................................................

7,637
7,416
175
36
10

7,650
7,451
154
41
4

E xam inations of departm ents and b ra n c h e s..............................................................
Examinations of trust departm ents.................................................................................
Examinations of branches................................................................................................

6,328
1,279
5,049

5,638
1,210
4,428

in v e s tig a tio n s ......................................................................................................................
New bank investigations..................................................................................................
State banks members of Federal Reserve System ...................................................
Banks not members of Federal Reserve System ......................................................
New branch investigations...............................................................................................
Mergers and consolidations..............................................................................................
Miscellaneous investigations............................................................................................

2,447
282
22
260
629
246
1,290

2,195
195
25
170
538
185
1,277

Citations contemplating termination of insurance. When other mea
sures have failed to correct a violation of law or regulation, or unsafe
or unsound banking practice, the ultimate step available to the
Corporation is to initiate proceedings to terminate the bank's insured
status. When this action becomes necessary, the bank and the State
authorities are formally notified, after which the bank must take cor
rective action within the time specified. If compliance is still not ob
tained, before insurance may be terminated the bank is given an
opportunity to present its case at an administrative hearing.
Table 5 shows that action has been taken against 203 banks since
1936 and that in the majority of cases the corrections were made or
the bank was absorbed or succeeded by another bank. Insurance was
terminated, or a date set for this, in 12 cases for failure to make
corrections.

SUPERVISORY ACTIVITIES

Table 5. ACTIONS TO TERMINATE INSURED STATUS OF BANKS CHARGED
WITH UNSAFE OR UNSOUND BANKING PRACTICES OR VIOLATIONS
OF LAW OR REGULATIONS, 1936-1969
Disposition or status

1936-19691

Started
during 1969

Total banks against which action was ta ken ....................................................................................................

203

Cases closed......................................................................................................................................

197

Corrections made.......................................................................................................................
Banks absorbed or succeeded by other banks
....
With financial aid of the Corporation..................................................................................
W ithout financial aid of the Corporation............................................................................
Banks suspended prior to setting date of termination of insured status by Corporation . .
Insured status terminated, or date for such termination set by Corporation, for failure
to make corrections
....................................................................
Banks suspended prior to or on date of termination of insured status.
..................
Banks continued in operation 2................................................................................................

79
70
63
7
36
12
9
3

Cases not closed December 31,1969........................................................................................

Correction period not expired..................................................................................................
Action deferred pending analysis of exam ination ........................................................................................

4
2

3
2

1 No action to terminate the insured status of any bank was taken before 1936. In 5 cases where in itial action was
replaced by action based upon additional charges, only the latter action is included.
2 One of these suspended 4 months after its insured status was terminated.

Six cases were open at the end of 1969, including five started
during the year. Of two active cases at the beginning of 1969, one was
closed because the bank was absorbed with the Corporation’s financial
aid, while in the second case the correction period had not expired
at the end of the year.
Applications for deposit insurance. State-chartered banks which are
not members of the Federal Reserve System become insured by appli
cation to and approval by the FDIC. Those banks obtaining national
charters, and State banks becoming members of the Federal Reserve
System, acquire insured status without applying to the Corporation.
The Federal Deposit Insurance Act requires the supervisory agency to
consider, before admitting any bank to deposit insurance, the financial
history and condition of the bank, adequacy of its capital structure,
its future earnings prospects, the general character of its management,
the convenience and needs of the community, and finally, the consist
ency of the bank’s corporate powers with the purposes of the act.
During 1969 the Corporation approved 157 applications for deposit
insurance; these involved 140 new banks and 17 operating banks.
Twenty-three new banks were located in Florida, and 19 in Illinois.
Applications for branches. Under Federal law, the supervisory agen
cies must consider the above six factors in passing upon applications
by insured banks to establish new branches. The Corporation ap
proved 556 such applications during 1969, almost 21 percent more
than in 1968. In addition, conversion of main offices into branches
in merger cases during the year created 47 branches of insured
nonmember banks.
Mergers. The Bank Merger Act of 1960 (as amended) requires
a Federal bank supervisory agency to give its approval before an
insured bank may engage in any merger transaction. If the continuing

FEDERAL DEPOSIT INSURANCE CORPORATION

bank is to be an insured nonmember bank, or if an insured bank is
applying to absorb a noninsured institution, the Corporation’s approval
must be obtained before the transaction may be consummated. The
act provides that the supervisory agencies must consider specifically
the effect of the transaction on competition, financial and managerial
resources, prospects of the existing and proposed institutions, and
convenience and needs of the community to be served. Details of the
applications approved by the Corporation under section 18(c) of the
Federal Deposit Insurance Act during 1969 are discussed in Table 15,
pages 36-136.
Tabulations of the number of mergers approved by the Federal
agencies under section 18(c) during 1969 are shown in Table 6. (The
TABLE 6. MERGERS, CONSOLIDATIONS, ACQUISITIONS OF ASSETS AND
ASSUMPTIONS OF LIABILITIES APPROVED UNDER SECTION 18(c)
OF THE FEDERAL DEPOSIT INSURANCE ACT DURING 1969
Offices operated3
Banks

Number
of banks2

Resources
(in thousands)3

Prior to
transaction

After
transaction

ALL CASES1
Banks in v o lv e d .....................................................
Absorbing banks.................................................
Absorbed banks
National ..........................................................
State bank members FRS ..........................
Not members FRS..........................................
Noninsured in s titu tio n s ......................................

293
138
155
55
17
78
5

$48,350,897
44,364,611
3,986,286
1,651,778
559,283
1,594,243
180,982

3553
3112
441
194
55
174
18

3543
3543

CASES WITH RESULTING BANK
A NATIONAL BANK
Banks in v o lv e d .....................................................
Absorbing banks.................................................
Absorbed banks
National
. .
State members FRS
....
Not members FRS
Noninsured institutions ..............................

162
78
84
42
7
33
2*

$31,228,319
29,372,988
1,855,331
1,294,725
179,737
378,446
2,423

2278
2035
243
153
24
64
2

2272
2272

32
16
16
3
5
8

$9,981,450
9,594,329
387,121
85,166
230,260
71,695

453
411
42
12
14
16

452
452

103
46
576
10
5
37
54

$7,143,551
5,397,294
1,746,257
271,887
149,286
1,144,102
180,982

839
681
158
29
17
94
18

834
834

CASES WITH RESULTING BANK A
STATE BANK MEMBER OF THE
FEDERAL RESERVE SYSTEM
Banks in v o lv e d .....................................................
Absorbing banks.................................................
Absorbed banks ..............................................
National
...
State members FRS ....................................
Not members FRS
..............
Noninsured institutions
..................
CASES WITH RESULTING BANK
NOT A MEMBER OF THE
FEDERAL RESERVE SYSTEM5
Banks in v o lv e d .....................................................
Absorbing banks.................................................
Absorbed banks
........
National
................
State members FRS
. .
Not members FRS
.. .
Noninsured institutions

1 Omitted are corporate reorganizations and other absorptions involving banks which prior to the transaction did not
individually operate an office in the United States.
2 The number of absorbing banks is smaller than the number of cases, because a few banks participated in more than
one case.
3 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.
4 Merger cases nos. 57 and 58 in Table 15 were reported also as approved cases by the Office of the Comptroller of the
Currency. These cases are included only once in the totals in this table.
5 Includes two cases approved by the Corporation of an absorption of a noninsured bank by a national bank, and one
case in which the absorbing bank was a State member bank.
6 Includes one building and loan association.-

SUPERVISORY ACTIVITIES

table does not include corporate reorganizations of individual banking
institutions, such as banks in process of forming one-bank holding
companies, which do not have the effect of lessening the number of
existing operating banks). Banks absorbed through mergers in 1969
numbered 25 more than in 1968, and branches of banks absorbed in
1969 exceeded the previous year’s total by 132.
The number of banks, by size of assets and by status of branch
banking in their States (that is, statewide branching, limited-area
branching, or unit banking), which were involved in absorptions ap
proved by the Federal agencies during 1969 are listed in Table 7.
Regulation of bank securities. Legislation enacted in 1964 extended
the provisions of the Securities Exchange Act of 1934 to cover secu
rities traded in the over-the-counter market. Responsibility for ad
ministering the act for insured banks was given to the Federal bank
regulatory agencies. Only those corporations now having 500 or more
shareholders and more than $1 million in assets are covered.
The Corporation, during 1969, received registration statements
from 19 insured State nonmember banks coming under the provisions
TABLE 7. APPROVALS UNDER SECTION 18(c) OF THE FEDERAL
DEPOSIT INSURANCE ACT DURING 1969
BANKS GROUPED BY SIZE AND IN STATES
ACCORDING TO STATUS OF BRANCH BANKING
Absorbing banks

Absorbed banks
Number of banks by size
(resources in $mil)
Number
of
banks1

Number of banks by
size (resources in $ m il)1

Number
of
branches

Resources
(in
thousands)

-5

5-10

10-25

25-100

Over
100

- 5 ......................
5-10......................
10-25......................
25-100......................
100-500......................
500 or more......................

138
6
9
21
45
34
23

155
6
9
27
49
40
24

286
9
16
41
64
94
62

$3,986,286
132,535
205,525
468,483
730,122
1,632,027
817,594

50
4
5
14
21
5
1

32
1
1
6
12
9
3

37
0
2
4
7
10
14

25
0
0
2
8
12
3

11
1
1
1
1
4
3

(A ) Statewide
branching2
10-25......................
25-100......................
100-500......................
500 or more......................

49
6
15
14
14

60
10
16
19
15

86
6
28
31
21

931,576
54,232
212,089
310,462
354,793

20
7
8
4
1

16
2
3
8
3

15
1
2
5
7

3
1
3

i
1

(B ) Lim ited area
b ra n ch in g 2
- 5 ......................
5-10......................
10-25......................
25-100......................
100-500......................
500 or m ore......................

82
4
7
15
27
20
9

88
4
7
17
30
21
9

200

2,958,881
128,063
197,708
414,251
434,493
1,321,565
462,801

26
2
4
7
12
1
0

9
16
35
36
63
41

1
0
4
9
1
0

22
0
2
3
5
5
7

16
0
0
2
3
11
0

95,829

0
0
0

4,472
7,817
83,540

1
0
1
0

2
2
3

4
2
1
1

2
2
3

0
0
0

0
0
2

0
0
0

T o ta l— U.S.

9
1
1
1
1
3
2

1 See footnote 1, Table 6.
2 For the purpose of analyzing branching activity, 17 States were included in Group A, 18 in Group B, and 15 in Group
C. It should be noted that for other purposes the classification of some States might differ from that used here.

FEDERAL DEPOSIT INSURANCE CORPORATION

of the act, bringing the year-end total to 94. The latter figure reflects
the addition of one registered bank which withdrew from the Federal
Reserve System and the termination of registration of 12 banks.
Terminations resulted when five registered banks were merged into
operating banks, six reorganized as subsidiaries of one-bank holding
companies, and one sold its assets and liquidated.
In addition to the registration statements filed by banks, the Corpo
ration also receives current reports required by the Securities Ex
change Act and regulates proxy solicitation for annual and special
meetings of the shareholders of these banks. Another section of the
act requires the filing of beneficial ownership reports by every director,
major officer, and large shareholder of a registered bank. During the
past year, 3,400 such reports had been received.
Changes in bank ownership and loans secured by bank stock.
Public Law 88-593 requires insured banks to report, to the appropriate
Federal banking agency, any of its outstanding voting stock changes
which would result in an alteration in control of management. Such
reports must include any change or replacement of the bank’s chief
executive officer, or any director, that occurs during the 12 months
following the change in control. Also, the law specifies that insured
banks must report any loans secured by 25 percent or more of the
outstanding voting stock of an insured bank.
This legislation is to alert the supervisory authorities to manage
ment changes which might adversely affect the bank. Reports received
by one Federal agency are exchanged with the other Federal banking
agencies, as well as with the State authority if a State-chartered bank
is involved. Over 400 changes in control involving insured nonmember
banks were reported to the Corporation in 1969.
Publications and statistical reports from banks. The Corporation
obtains reports of condition at quarterly intervals, and a report of
income and dividends once each year, from each insured bank under
its supervision, as do the other Federal banking agencies for banks
under their supervision. The commercial bank Report of Condition
format and contents were changed in June 1969. The new form pro
vides more detail on bank assets and alters the treatment of reserves,
shifting them to a separate liability account rather than subtracting
them from assets. The Report of Income and Dividends also was
changed to bring income reporting into line with accepted accounting
practices and to provide a better gauge of bank performance to the
supervisory authorities and the public. Changes in these two reports
were effected following extensive discussions among the three Federal
banking agencies, State supervisory authorities, and representatives
of the banking industry. New report formats are reflected in the 1969
statistical tables in this publication.

SUPERVISORY ACTIVITIES

The Corporation processed the revised Report of Condition as of
June 30, 1969, for all insured commercial banks. Additionally, the
Corporation prepared and distributed, to each bank, data on the
bank’s major call report items, comparing them with figures for other
banks of the same size class and geographical location.
This effort was part of an on-going project in which the Corporation
furnishes special mailings of semiannual data on balance sheet infor
mation and annual data on income and dividends to both commercial
banks and FDIC-insured mutual savings banks. Comprehensive income
and year-end balance sheet information for commercial banks are
published in Bank O perating Statistics 1 96 9 (available on request).
In 1969 the Corporation, in conjunction with the Board of Governors
of the Federal Reserve System and the Comptroller of the Currency,
published Trust Assets of Insured Com m ercial Banks— 1968. The sta
tistics presented in this publication are a compilation of more than
3,300 reports from banks holding trust assets. Each agency edited
the reports from trust departments under its supervision. Processing
of all data for publication was handled by the Federal Deposit Insur
ance Corporation in cooperation with the other two agencies.
In its continuing effort to keep abreast of current developments in
the market for savings, the Corporation conducted four surveys— on
January 31, April 30, July 31, and October 31— of interest rates paid
during 1969 on time and savings deposits by insured nonmember
commercial banks and by FDIC-insured mutual savings banks. (Mem
ber banks of the Federal Reserve System were surveyed by the Federal
Reserve Board of Governors.) Tabulated survey data and a summary of
recent developments in the savings market were sent to each report
ing bank along with the survey questionnaires.
The Corporation financially supported a study of the impact of
computers on small and medium-sized banks, which was published
in 1969 under the title “ Banking Computer Style." The study focused
on managerial and operational problems that banks encountered dur
ing the early years of computerization.
On April 10, 1969, the Corporation announced the awarding of
four FDIC Fellowships in Banking, Finance, and Economics for 1969.
These fellowships, which are intended to encourage research in bank
ing and related fields, are part of a program to improve the quality of
information useful to bank supervisors and to the banking community.
The Corporation has supported research on banking by staff in its
own Research Division and provided assistance to researchers at vari
ous colleges and universities. Results of these works have been pub
lished in academic journals, banking trade publications, and various
other forms.
Training programs for examiners and liquidators. The Corporation
carries out a comprehensive and varied training and educational pro

FEDERAL DEPOSIT INSURANCE CORPORATION

gram for personnel of the Division of Bank Supervision (formerly the
Examination Division). Although the bulk of the bank examiner’s
training is of the “ on-the-job" variety, it is preceded by a one-week
programmed instruction course developed by the Corporation to ac
quaint new trainees with the FDIC’s organization and functions and
with basic subject matter the examiners are expected to master during
the initial stages of their careers.
Each year, 26 FDIC examiners are enrolled in one of the Graduate
Schools of Banking which are conducted on major college campuses
throughout the country. Over 380 Corporation examiners have grad
uated from these three-year programs during the past 20 years. Formal
training developed specifically for examiner personnel includes the
three divisions of the Bank Examination School (Assistant Examiners,
Examiners, and Trust) and a basic and intermediate version of the
Course in Examining a Computerized Bank. In recent times, a mini
mum of 500 Division of Bank Supervision personnel have participated
in these programs each year.
Recognizing the need to equip examiners to meet the demands
imposed by rapidly advancing technology in the banking industry, the
Division of Bank Supervision will begin operating a modern and versa
tile training center during the early part of 1970. This center, located
in a nearby suburb of Washington, D.C., will enable the Corporation
to provide consistent quality training at all levels.
The Corporation also has developed a one-week self-instructional
program for new employees of the Division of Liquidation; examiners
and assistant examiners who have been detailed to the Liquidation
Division to assist in pay-off or assumption transactions; and tempo
rary employees hired locally to assist in these proceedings. The pro
gram, which saves considerable training time and expense, is designed
to teach those skills performed by the Liquidation personnel within
the first 30 days after an insured bank has closed.
For its achievements in the field of training during 1969, the
Corporation received the Government Organization Award given
annually by the Washington, D.C., area chapter of the American
Society for Training and Development, and the Training Officers Con
ference.
Conferences with banking groups. Conferences with State bank
supervisory authorities were held in May and September 1969. The
States and territories invited to participate comprised eight of the
Corporation's 14 Regions: Boston, Kansas City, Richmond, Columbus,
Chicago, Memphis, New York, and Philadelphia. The May meeting was
attended by 28 supervisors and aides from banking departments of
12 States, and the September meeting by 34 supervisors and aides

SUPERVISORY ACTIVITIES

from banking departments of 11 States, Puerto Rico, and the Virgin
Islands. These conferences were a continuation of a program initiated
in 1964 to provide officials of State banking departments and the
Corporation an opportunity to review industry developments at the
State and Federal levels.
ADMINISTRATION OF THE CORPORATION
Structure and employees. The Corporation is managed by a threemember Board of Directors. The Chairman and the Director are ap
pointed each for a six-year term by the President with the advice and
consent of the Senate. The Comptroller of the Currency, also a Presi
dential appointee, serves ex officio as the third member of the Board.
The names of Corporation officials, Regional Directors, and
Regional offices are shown on pages v and vi.
At the end of 1969, the Corporation's employment totaled 2,283,
of which 151 were serving on a temporary basis. The total figure
represents an increase of 228, including an additional 28 nonperma
nent employees, during the year (Table 8).
Table 8. NUMBER OF OFFICERS AND EMPLOYEES
OF THE FEDERAL DEPOSIT INSURANCE CORPORATION,
DECEMBER 31, 1968 AND 1969
Washington
office

Total

Regional and other
field offices

Unit

T o ta l..................................................................................
Directors......................................................................
Executive Offices........................................................
Legal Division.............................................................
Division of Bank Supervision..................................
Division of Liquidation..............................................
Division of Research..................................................
Office of the Controller..............................................

1969

1968

1969

1968

1969

1968

27283i

2,055i

636

589

1,647

1,466

3
49
55
1,686
159
165
166

3
48
45
1,526
132
146
155

3
49
49
135
77
165
158

3
48
45
135
67
146
145

6
1,551
82

1,391
65

1 Includes 151 nonpermanent employees serving on a short-term appointment or when actually employed basis in
1969 and 123 in 1968. Nonpermanent employees include college students participating in the work-study program, clerical
workers employed on a temporary basis at banks in process of liquidation, and other personnel.

The increase of 160 employees in the Division of Bank Supervision
occurred entirely in the Regional and field offices, which account for
over 90 percent of the Division's total personnel.
From an average employment of 1,253 field examiners, 198 left
the Corporation in 1969, including 52 who entered military service.
The turnover rate for field examiners was 15.8 percent, compared
with 16.1 percent in 1968.
FINANCES OF THE CORPORATION
Assets and liabilities. The total assets of the Corporation amounted
to $4,297 million at the end of the year. Cash and U.S. Government

FEDERAL DEPOSIT INSURANCE CORPORATION

obligations valued at amortized cost totaled $4,261 million. Assets
acquired in receivership and deposit assumption transactions, less
reserves for losses, amounted to $22.2 million. Land and the Corpo
ration’s main office building, less depreciation on the building, were
carried at $7.5 million.
Total liabilities on December 31 were $246 million, of which $241
million were assessment credits due insured banks. About 8.6 percent
of the credits were available immediately, the remainder to become
available on July 1, 1970. Assets and liabilities of the Corporation on
December 31, 1969, are shown in Table 9.
The Corporation’s total assets minus its liabilities comprise the
deposit insurance fund, which amounted to $4,051 million at the end
of the year. Although the fund constitutes the Corporation’s principal
financial resource for the protection of depositors, others are available
Table 9. STATEMENT OF FINANCIAL CONDITION,
FEDERAL DEPOSIT INSURANCE CORPORATION,
DECEMBER 31, 1969
ASSETS
$

C a sh......................................................................................................................................
U. S. G overnm ent oblig a tio n s :
Securities at amortized cost (face value $4,233,818,000; cost $4,198,275,582)___
Accrued interest receivable...........................................................................................
Assets acquired in rece ive rsh ip and deposit assum ption tra n s a c tio n s :*
Special assistance to insured banks.............................................................................
Subrogated claims of depositors against closed insured banks...............................
Net insured balances of depositors inclosed insured banks, to be subrogated
when paid—see related lia b ility ..............................................................................
Equity in assets acquired under purchase agreements.............................................
Assets purchased o u trig h t..............................................................................................

$4,209,929,779
51,221,862

4,261,151,641

10,000,000
21,208,349
486,790
16,276,428
14,545

$
Less reserves for losses..................................................................................................

6,347,222

47,986,112
25,754,000

22,232,112

M iscellaneous a sse ts.......................................................................................................
Land and o ffic e b u ild in g , less dep reciation on b u ild in g .......................................
F u rn itu re , fix tu re s , and e q u ip m e n t............................................................................

241,073
7,499,699

T otal asse ts............................................................................................

$4,297,471,748

LIABILITIES AND DEPOSIT INSURANCE FUND2
A ccounts payable and accrued lia b ilitie s .................................................................

Earnest money, escrow funds, and colle ctio n s held fo r o th e rs,........................
Accrued annual leave of em ployees...........................................................................
Due insured banks:
Net assessment income credits available July 1,1970 (See Table 11)...................
Other assessment credits available im m ediately........................................................

2,147,946
698,482
2,140,619

$ 220,230,677
20,658,862

N et insured balances of depositors in closed insured banks— see related
a s s e t..............................................................................................................................

240,889,539
486,790

T otal lia b ilitie s ......................................................................................
Deposit in sura nce fund, net incom e accum ulated since inception (See

$ 246,363,376

Table 1 0 )......................................................................................................................

4,051,108,372

Total lia b ilitie s and deposit in sura nce fu n d ................................

$4,297,471,748

1 Reported hereunder is the book value of assets in process of liquidation. An a nalysis of at I assets acquired in receiver
ship and deposit assumption transactions, including those assets which have been liquidated, is furnished in Table 3.
2 Capital stock was retired by payments to the United States Treasury in 1947 and 1948.
NOTE: These statements do not include accountability for the assets and liabilities of the closed insured banks for
which the Corporation acts as receiver or liquidating agent.

FINANCES OF THE CORPORATION

to it by virtue of its authority, granted in 1947, to borrow from the
U.S. Treasury. Under this authority, which the Corporation has never
had occasion to use, the Secretary of the Treasury is directed to lend
up to $3 billion to the Corporation when in the judgment of its
Board of Directors the funds are needed for insurance purposes.
Income and expenses. The Corporation’s total income in 1969 was
$336 million, consisting of $144 million from assessments, less
credits to insured banks, and income from securities of $192 million.
Total expenses and losses in 1969 amounted to $34 million, provid
ing a net addition to the deposit insurance fund of about $302 million.
Details of income and expenses for the year are shown in Table 10.
Table 10. STATEMENT OF INCOME AND THE DEPOSIT INSURANCE FUND,
FEDERAL DEPOSIT INSURANCE CORPORATION,
YEAR ENDED DECEMBER 31, 1969
Incom e:
Deposit insurance assessments:
Assessments earned in 1969......................................................................................
Less net assessment income credits to insured banks..........................................

$364,221,713
220,21*8,423

$ 144,003,290

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

65,219

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

$ 144,068,509
191,709,155
30,961

T ota l in co m e ...........................................................................................

$ 335,808,625

Expenses and losses:
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 1969.......................................................................
Adjustments applicable to banks assisted in prior years......................................

$ 22,067,592
1,393,302
5,372,739
4,640,413
$

3,850,000
-4,008,109

-158,109
605,241

Non-recoverable insurance expenses incurred to protect depositors— n e t............
Total expenses and losses..................................................................

33,474,046

33,921,178

Net add ition to th e deposit in surance fund— 1969..................................................
Deposit in sura nce fund, January 1, 1969...................................................................

$ 301,887,447
3,749,220,925

Deposit in sura nce fund, December 31, 1969, net incom e accum ulated since
in c e p tio n ......................................................................................................................

$4,051,108,372

The assessment ratio is set by statute at 1/12 of one percent of
total assessable deposits of each insured bank. The Federal Deposit
Insurance Act of 1950 provided that a portion of the assessments
earned by the Corporation each year, after deducting insurance losses
and operating expenses, be returned to the insured banks in the form
of a credit against future assessments. The amount of the credit was
set initially at 60 percent and was raised to 66% percent in 1961.
In 1969 the amount returned to insured banks was $220 million; this
had the effect of reducing the net assessment rate to 1/30 of one

FEDERAL DEPOSIT INSURANCE CORPORATION

Table 11. DETERMINATION AND DISTRIBUTION OF NET ASSESSMENT INCOME,
FEDERAL DEPOSIT INSURANCE CORPORATION,
YEAR ENDED DECEMBER 31, 1969
Determ ination of net assessment income:
$364,221,713

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 1969.....................
Adjustments to provisions for banks assisted in prior years

$ 33,474,046
$

3,850,000
-4,035,209

-185,209
605,241

Insurance expenses.............................................................................
Total deductions...............................................................

33,894,078

Net assessment income for 1969....................................................

$330,327,635

Distribution of net assessment income, December 31,1969:
Net assessment income for 1969:
33V3% transferred to the deposit insurance fu n d ......................
662A % credited to insured banks.................................................

$110,109,212
220,218,423

T o ta l................................................................................

$330,327,635
Percentage of
total assessment
becoming due in
1969

Allocation of net assessment income credit among insured banks, December
31,1969:
Credit for 1969.............................................................................................................
Adjustments of credits for prior years.....................................................................

$220,218,423
12,254

60.46274
.00336

T o ta l.........................................................................................................

$220,230,677

60.46610

percent of assessable deposits. The computation and allocation of net
assessment income in 1969 are shown in Table 11. Sources and ap
plication of the Corporation’s funds in 1969 are given in Table 12.
Income and the deposit insurance fund, 1933-1969. The income
and expenses of the Corporation and addition to the insurance fund
each year appear in Table 13.
The Federal Deposit Insurance Act requires that monies of the
Corporation not otherwise employed be invested in U.S. Treasury
Table 12. SOURCES AND APPLICATION OF FUNDS,
FEDERAL DEPOSIT- INSURANCE CORPORATION,
YEAR ENDED DECEMBER 31, 1969
Funds provided by:

Percent

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..........
Increase in assessment credits due insured banks....................................................................

$ 144,068,509
190,631,260
2,070,846,033
30,326,233
23,790,314

5.9
7.7
84.2
1.2
1.0

Total funds provided...............................................................................................

$2,459,662,349

100.0

Funds applied 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 lia b ilitie s ..................................................................................

Total funds applied.................................................................................................

33,913,122
38,744,255
2,378,623,794
8,381,178

1.4
1.6
96.7
0.3

$2,459,662,349

100.0

FINANCES OF THE CORPORATION
Table 13. INCOME AND EXPENSES,
FEDERAL DEPOSIT INSURANCE CORPORATION,
BY YEAR, FROM BEGINNING OF OPERATIONS,
SEPTEMBER 11, 1933, TO DECEMBER 31, 1969
ADJUSTED TO DECEMBER 31, 1969
(In millions)
Expenses and losses

Income
Year
Total

Deposit
insurance
assess
ments 1

Invest
ments
and
other
sources2

Total

Deposit
insurance
losses and
expenses

Interest
on capital
stock 3

Adminis
trative
and
operating
expenses

Net
income
added to
deposit
insurance
fu n d 4

1933-69.

$4,527.9

$2,688.9

$1,839.0

$476.8

$55.6

$340.6

$4,051.1

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

335.8
295.0
263.0
241.0
214.6
197.1

144.0
132.4
120.7
111.7
93.0

191.8
162.6
142.3
129.3
112.4
104.1

37.9
29.7
29.7
25.0
22.9
18.7

4.4
.7
5.3
5.2
5.2
3.2

33.5
29.0
24.4
19.8
17.7
15.5

297.9
265.3
233.3
216.0
191.7
178.4

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

15.5
13.8
14.8
12.5

1.1
.1

14.4
13.7
13.2
12.4
11.9

166.4
147.3
132.5
132.1
124.4

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

126.8
117.3
111.9
105.7
99.7

73.8
69.1

11.6

62.4

53.0
48.2
43.7
39.6
37.3

11.6
9.6
9.1
8.7
7.7

115.2
107.6
102.3
96.7
91.9

1 9 5 3 ....
1952........
1951........
1950........
1949........

94.2

60.2
57.3
54.3
54.2
122.7

34.0
31.3
29.2
30.6
28.4

7.3
7.8

7.2
7.0
6.6
6.4
6.1

86.9
80.8
76.9
77.0
144.7

119.3
114.4
107.0
93.7
80.9

26.3
43.1
23.7
27.3
18.4

1948........
1947........
1946........
1945........
1944........
1 9 4 3 ....
1942........
1941........
1940........
1939........
1938........
1937........
1936........
1935........
1933-34..

88.6
83.5
84.8
151.1
145.6
157.5
130.7

121.0
99.3

86.6
69.1
62.0
55.9
51.2
47.7
48.2
43.8

20.8
7.0

102.2

68.2
66.1

70.0
56.5
51.4
46.2
40.7
38.3
38.8
35.6
11.5

12.1

1.6
.1
.2

9.7
9.6
9.0
7.8

6.6
7.8
6.4

1.4
.3

7.0
9.9

0.6

10.0

.1
.1

9.4
9.3

.1
.1

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 5

36.4
36.0
32.9
9.5
- 3 .0

9.8

10.1
10.1

10.6

9.7
10.5

12.9
16.4

3.5
7.2

9.4
9.4

11.3
12.2
10.9
11.3

2.5
3.7

16.6

12.6

8.2
9.3
7.0

$80.6

10.0

2.6
2.8
.2

1 For the period from 1950 to 1969, 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 amount to $2,172 m illion.
in c lu d e s $9.3 million of interest and allowable return received on funds advanced to receivership and deposit
assumption cases by the Corporation.
3 Paid in 1950 and 1951, but allocated among years to which it applies. In itia l capital of $289 million was retired by
payments to the United States Treasury in 1947 and 1948.
4 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
subsequent 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.
5 Net after deducting the portion of expenses and losses charged to banks withdrawing from the temporary insurance
funds on June 30,1934.

obligations or securities fully guaranteed by the United States. While
almost three-fifths of the Corporation’s total income since 1934 came
from assessments, income from investments provided 57 percent of

FEDERAL DEPOSIT INSURANCE CORPORATION

the Corporation’s total income in 1969 and continues to increase at
a faster rate than income from net assessments.
Insured deposits and the deposit insurance fund at the end of each
year since 1934 are shown in Table 14. The rise in the estimated
amount of insured deposits by over $16 billion, to $313 billion at the
end of 1969, is attributable almost totally to the increase in the maxi
mum level of insurance per depositor in 1969. Similarly, the ratio of
insured deposits to total deposits in insured banks, 63.1 percent, is
estimated to be about 3.1 percentage points above the level that
would have existed under the $15,000 maximum.
Audit. The General Accounting Office has audited the financial trans
actions of the Corporation each year since 1945. Previously, audits
were conducted annually by private firms engaged by the Corporation.
The Corporation also provides its own continuous internal audit.
Table

14.

INSURED

DEPOSITS AND THE
1934-1969

Deposits in
insured banks
(in m illions)

Year
(Dec. 31)

Total

Insured 1

DEPOSIT

Percent
of
deposits
insured

Deposit
insurance
fund
(in
millions)

63.1%
60.2
58.2

$4,051.1
3,749.2
3,485.5

INSURANCE

FUND,

Ratio of deposit
insurance fund to—
Total
deposits

Insured
deposits

.8 2 %
.76
.78

1.29%
1.26
1.33

.80

1.45

1969......................
1968......................
1967......................

$495,858
491,513
448,709

$313,085
296,701
261,149

1965......................

377,400

209,690

55.6

3,036.3

1964......................
1963......................
1962......................
1961......................
1960......................

348,981
313,3042
297,5483
281,304
260,495

191,787
177,381
170,2104
160,309^
149,684

55.0
56.6
57.24
57.04
57.5

2,844.7
2,667.9
2,502.0
2,353.8
2,222.2

.82
.85
.84
.84
.85

1.48
1.50
1.474
1.474
1.48

1969......................
1958......................
1957......................
1956......................
1955......................

247,589
242,445
225,507
219,393
212,226

142,131
137,698
127,055
121,008
116,380

57.4
56.8
56.3
55.2
54.8

2,089.8
1,965.4
1,850.5
1,742.1
1,639.6

.84
.81
.82
.79
.77

1.47
1.43
1.46
1.44
1.41

1954......................
1953......................
1952......................
1951......................
1950......................

203,195
193,466
188,142
178,540
167,818

110,973
105,610
101,842
96,713
91,359

54.6
54.6
54.1
54.2
54.4

1,542.7
1,450.7
1,363.5
1,282.2
1,243.9

.76
.75
.72
.72
.74

1.39
1.37
1.34
1.33
1.36

1949......................
1948......................
1947......................
1946......................
1945......................

156,786
153,454
154,096
148,458
158,174

76,589
75,320
76,254
73,759
67,021

48.8
49.1
49.5
49.7
42.4

1,203.9
1,065.9
1,006.1
1,058.5
929.2

.77
.69
.65
.71
.59

1.57
1.42
1.32
1.44
1.39

1944......................
1943......................
1942......................
1941......................
1940......................

134,662
111,650
89,869
71,209
65,288

56,398
48,440
32,837
28,249
26,638

41.9
43.4
36.5
39.7
40.8

804.3
703.1
616.9
553.5
496.0

.60
.63
.69
.78
.76

1.43
1.45
1.88
1.96
1.86

1939......................
1938......................
1937......................
1936......................
1935......................
1934......................

57,485
50,791
48,228
50,281
45,125
40,060

24,650
23,121
22,557
22,330
20,158
18,075

42.9
45.5
46.8
44.4
44.7
45.1

452.7
420.5
383.1
343.4
306.0
333.0

.79
.83
.79
.68
.68
.83

1.84
1.82
1.70
1.54
1.52
1.84

1966 ......................

401,096

234,150

58.4

3 , 252.0

.81

1.39

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.

RULES AND REGULATIONS OF THE CORPORATION

RULES AND REGULATIONS AND STATEMENTS OF GENERAL POLICY
Definition of the term “ political subdivision” for insurance pur
poses. Effective January 8, 1969, the Board of Directors amended
the Corporation's rules and regulations, Part 330, to define, for the
first time, the term “ political subdivision” for insurance purposes.
The amendment is intended to clarify the insurance coverage afforded
deposits of public units and to enable them, as well as insured banks,
to comply with all legal requirements relating to public fund deposi
tories. Under the provisions of the amendment, the term "political
subdivision” includes any subdivision of a public unit, as defined in
section 3(m) of the Federal Deposit Insurance Act, as amended (12
U.S.C. 1813(m)), or any principal department of such public unit (1)
the creation of which has been expressly authorized by State statute,
(2) to which some functions of government have been delegated by
State statute, and (3) to which funds have been allocated by statute
or ordinance for its exclusive use and control. The definition specif
ically includes drainage, irrigation, navigation, improvement, levee,
sanitary, school or power districts and bridge or port authorities and
other special districts created by State statute or compacts between
States. Excluded from the term are subordinate or nonautonomous
divisions, agencies, or boards within principal departments.
A similar amendment, applicable to public unit accounts in insured
savings and loan associations, was adopted by the Federal Home Loan
Bank Board.
Minimum security devices and procedures for insured nonmember
banks. On January 13, 1969, the Corporation’s Board of Directors—
simultaneously with the Board of Governors of the Federal Reserve
System, the Comptroller of the Currency, and the Federal Home Loan
Bank Board— adopted a regulation implementing the Bank Protection
Act of 1968 (82 Stat. 294).
The new Part 326 of the Corporation’s rules and regulations, en
titled “ Minimum Security Devices and Procedures for Insured Non
member Banks,” establishes minimum standards with which each
insured State nonmember bank must comply for installing, maintain
ing, and operating security devices, and it lists procedures for banks
to follow to discourage robberies, burglaries, and larcenies and to
assist in identifying and apprehending persons who commit such acts.
For example, the new regulation (1) requires the designation of a
security officer for each insured State nonmember bank; (2) requires
each bank to submit reports on security devices proposed for each
banking office; (3) requires the development of a security program
for each bank; and (4) requires each bank to develop a plan for
installing, maintaining, and operating appropriate security devices in
each banking office. The regulation also requires each bank to submit

FEDERAL DEPOSIT INSURANCE CORPORATION

compliance reports as of the last business day in June of 1970 and
as of the last business day in June of each calendar year thereafter.
Part 326 requires bank security officers to seek the advice of law
enforcement officers in determining the specific needs of each office.
In addition to specifying certain minimum requirements, the new
part describes, in an appendix, some standards for various other
security devices that might be considered appropriate for installation
in banking offices located in areas with a high incidence of crimes
against financial institutions.
Special notice account deposits in Massachusetts. To prevent deteri
oration in the competitive position of the eight insured nonmember
mutual savings banks located in Massachusetts, as compared with the
large number there not subject to the Corporation’s interest-rate
regulation, the Board of Directors, effective April 14, 1969, granted
the eight a local rate exemption which, in effect, permits them to pay
up to 51/2 percent— a rate being offered by a number of the Stateinsured institutions— on 90-day special notice accounts. More spe
cifically, the Board of Directors adopted an amendment, to Part 329
of the Corporation’s rules and regulations, which permits insured non
member mutual savings banks located in Massachusetts to pay a
higher rate of interest or dividends on any deposit subject to a written
agreement with the depositor that the deposit may not be withdrawn
other than pursuant to the terms of a withdrawal notice signed by the
depositor and received by the bank not less than 90 days in advance
of a nine-day withdrawal period.
Advertising of interest paid on deposits in insured nonmember
banks. The Board of Directors, on June 13, adopted amendments to
Part 329, entitled “ Interest on Deposits,” to govern the advertising of
interest paid on deposits in insured nonmember banks. These amend
ments, which became effective August 1, 1969, implement authority
granted to the Corporation by the Act of September 21, 1968 (82
Stat. 856). Similar amendments were approved by the Board of
Governors of the Federal Reserve System and by the Federal Home
Loan Bank Board with respect to financial institutions subject to super
vision by them.
The amendments supersede advertising guidelines that were set
forth in a 1966 letter addressed by the Corporation to all insured
nonmember banks. The amendments incorporate the guideline re
quirements that interest rates be stated in terms of annual rates of
simple interest; that the annual rate of simple interest be stated
with equal prominence where a percentage yield achieved by com
pounding interest during one year is advertised; and that time and
amount requirements for an advertised rate be stated. In the interest
of greater clarity, advertisements of yields based on periods in excess

RULES AND REGULATIONS OF THE CORPORATION

of a year (such as average annual yields achieved by compounding)
are prohibited.
Time deposits of foreign governments. Effective November 5, 1969,
section 329.3(g) of the Corporation's rules and regulations was
amended to expand the categories of organizations on whose time
deposits insured nonmember banks may pay rates of interest in
excess of those generally permitted by the Corporation's interest-rate
regulation. Formerly, time deposits of foreign governments, of mone
tary or financial authorities of foreign governments, or of international
financial institutions of which the United States is a member were
exempt from the interest-rate limitations. The amended subsection
broadens these categories of exempt organizations with respect to
time deposits having maturities of 2 years or less and representing
funds deposited and owned by (1) a foreign government or an agency
or instrumentality thereof engaged principally in activities which are
ordinarily performed in the United States by governmental entities,
(2) an international entity of which the United States is a member,
or (3) any other foreign, international, or supranational entity specif
ically designated by the Board of Directors as exempt. The amended
subsection further provides that any such certificate of deposit, issued
by an insured nonmember bank to any such entity, on which the
contract rate of interest exceeds the maximum rate generally pre
scribed by the Corporation’s interest-rate regulation, must provide
that, if the certificate is transferred to a nonexempt holder, the date
of transfer shall appear on the certificate and that the maximum
interest-rate limitations shall apply to the certificate for any period
during which it is held by a person other than an exempt governmental
entity.
An alternative method of transferring such a certificate to a non
exempt holder is also provided by the amended subsection. If it
desires to do so, a bank may issue a new certificate to the transferee
so long as the new certificate does not mature before the maturity
date of the original certificate and does not provide for interest after
the date of transfer at a rate in excess of the applicable maximum
rate authorized by section 326.6 of the Corporation's rules and regu
lations as of the date of issuance of the original certificate.
Increase in insurance coverage. Effective December 23, 1969, the
Board of Directors adopted amendments to Parts 306, 308, 328, 330,
and 331 of the Corporation's rules and regulations in order to conform
them to the provisions of section 7 of the Act of December 23, 1969
(83 Stat. 375), which increased the maximum amount of the insured
deposit of each depositor from $15,000 to $20,000 effective upon
the date of its enactment.
Securities of insured nonmember banks. Effective December 31,
1969, the Board of Directors adopted amendments to Part 335 of its

FEDERAL DEPOSIT INSURANCE CORPORATION

rules and regulations relating to the form and content of commercial
bank financial statements and proxy solicitation provisions. This part
of the rules and regulations, entitled “ Securities of Insured State Non
member Banks,” applies the disclosure provisions of the Securities
Exchange Act of 1934 to the securities of insured State nonmember
banks that have 500 or more shareholders.
The major change effected by the amendments is to implement
the “ net income” concept in bank income reports. Briefly, the change
(1) requires a bank to recognize a loan loss factor in reporting operat
ing expenses; (2) requires securities gains and losses to be reported,
as realized, in a bank’s statement of income; and (3) designates the
last line of the statement of income as “ net income.” In addition, per
share earnings are required to be reported. The amendments generally
are intended to make financial reports required by Part 335 of the
Corporation’s rules and regulations consistent with the format and
instructions for the preparation of reports submitted periodically to
the Federal bank regulatory agencies.
Copies of statements and reports of all banks subject to Part 335
will continue to be available for public inspection at the Corporation’s
Washington office and at the New York, Chicago, and San Francisco
Federal Reserve Banks. In addition, this information for each reporting
bank will be available at the Federal Reserve bank in the district in
which the bank is located.
Part 309 of the Corporation’s rules and regulations, which provides
for the availability to the public of reports required from insured
State nonmember banks, has been amended to conform to the'
amended Part 335.
Truth-in-Lending regulation. On July 1, 1969, the disclosure and
advertising provisions of Title I of the Consumer Credit Protection Act
(Truth-in-Lending Act) and its implementing regulation (Federal Re
serve Board Regulation Z) went into effect. Administrative enforcement
of Truth-in-Lending with respect to insured banks is divided among the
Comptroller of the Currency, for national banks; the Board of Gover
nors of the Federal Reserve System, for State member banks; and the
Federal Deposit Insurance Corporation, for insured State nonmember
banks.
Materials prepared by the Board of Governors of the Federal Re
serve System, including its official interpretations of regulation Z,
have been distributed by the Corporation to all insured State non
member banks.
Text of regulations. The text of pertinent provisions of the foregoing
regulations (except Federal Reserve Board Regulation Z) is presented
in Part 3 of this report.

BANK ABSORPTIONS APPROVED BY THE CORPORATION
BANKS INVOLVED IN ABSORPTIONS
APPROVED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION
IN 1969
S tate

Town or City

B ank

Alaska

Anchorage

The First National Bank of
Anchorage
The First Bank of Valdez

Valdez
Arizona

Phoenix

Tucson
Yuma
California

Fremont
San Diego
San Francisco

San Jose
Connecticut

New Haven
Stamford

Georgia

Illinois

12, 65
12
9

Bank of Fremont
Fremont Bank
City Bank of San Diego
Bank of America National Trust
and Savings Association
Barclays Bank of California
California Canadian Bank
First Valley Bank

65
9
47
47
7
1
51
7
51

The Union and New Haven Trust
Company
28
The Fairfield County Trust
Company (change title to Union
Trust Company)
28

Honolulu

Bank of Hawaii

Chicago

Bev Bank (change title to
Beverly Bank)
Beverly Bank
The Millikin Trust Company
The Millikin National Bank of
Decatur

Decatur

Indiana

Pioneer Bank of Arizona
(change title to Great
Western Bank & Trust
Company)
Westam, Inc.
United Bank of Arizona
Great Western Bank & Trust
Company
Bank of Yuma

57
57

The Citizens and Southern
DeKalb Bank
The Citizens and Southern
Belvedere Bank

Avondale Estates
Decatur

Hawaii

No.
(Table 15)

Albany
Fort Wayne

37
37
58
58

Albany State Bank and Trust
Company
29
Allen Bank and Trust Company
(change title to Indiana Bank
and Trust Company of Fort
Wayne)
43
Financial Bank, Inc. (change title
to The Peoples Trust and
Savings Company)
66

FEDERAL DEPOSIT INSURANCE CORPORATION

S ta te

N o.
(T a b le 15)

T o w n o r C ity

Bank

Fort Wayne (cont'd)

Indiana Bank and Trust Company
of Fort Wayne
The Peoples Trust and Savings
Company
Citizens State Bank
The Boone County State Bank
Industrial Trust & Savings Bank
Roachdale Bank and Trust
Company
Russellville Bank

Jamestown
Lebanon
Muncie
Roachdale
Russellville
Casey
Des Moines
Menlo
Windsor Heights

43
66
27
27
29
33
33

Casey State Bank (change title to
Security State Bank)
34
Bankers Trust Company
38
Menlo Savings Bank
34
Bankers Trust Company of
Windsor Heights
38

Louisiana

Baton Rouge

American Bank & Trust Company 73
Great American Bank & Trust
Company (change title to
American Bank & Trust
Company)
73

Maryland

Baltimore

Clifton Savings Bank
Clifton Trust Bank
Marine Bank of Crisfield
Bank of Somerset

49
49
59
59
72

Cadillac
Kalkaska
Morrice
Owosso

Central Michigan Bank
Citizens State Bank (change title
to Central Michigan Bank)
The Cadillac State Bank
The Kalkaska State Bank
The Morrice State Bank
The Owosso Savings Bank

72
13
13
17
17

New Hampshire

Concord
Pittsfield

New Hampshire Savings Bank
Pittsfield Savings Bank

10
10

New Jersey

Clayton
Freehold

The Clayton National Bank
The Central Jersey Bank and
Trust Company
Community Bank of Linden
(change title to Community
State Bank & Trust Company)
Peoples Bank of South Jersey
State Bank of Rahway
First National Bank of Scotch
Plains
Franklin State Bank
The National Bank of Westfield

Crisfield
Princess Anne
Michigan

Barryton
Big Rapids

Linden

Penns Grove
Rahway
Scotch Plains
Somerset
Westfield

2
68
2
60
60
67

BANK ABSORPTIONS APPROVED BY THE CORPORATION

N o.
( T a b le 15)

S ta te

T o w n o r C ity

Bank

New York

New York (Brooklyn)

32
Anchor Savings Bank
Bushwick Savings Bank (change
title to Anchor Savings Bank)
The Prudential Savings Bank
West Side Savings Bank (change
title to Prudential Savings
35
Bank)

New York

North Carolina

Durham
Gibsonville
Harrellsville
Lenoir
Marshville
Monroe
Mount Olive
North Wilkesboro

Pittsboro
Rocky Mount
Roxobel
Salisbury
Smithfield
Wadesboro
Whiteville

Yadkinville
Ohio

Akron
Barberton

Manchester
Winchester

Pennsylvania

Allentown
Bakerton
Bethlehem

Central Carolina Bank & Trust
30, 61
Company
21
The Bank of Gibsonville
20
Bank of Harrellsville
Lenoir Industrial Bank, Inc.
63
Mutual Bank & Trust Company
24
American Bank & Trust Company 23
Southern Bank and Trust
Company
62
The Northwestern Bank
14, 63
Wilkes County Bank & Trust
Company (change title to The
Northwestern Bank)
14
61
Bank of Pittsboro
Peoples Bank & Trust Company 20
62
Roanoke Chowan Bank
Security Bank and Trust
Company
First-Citizens Bank & Trust
Company
Anson Bank and Trust Company
Eastern Bank and Trust Company
(change title to Waccamaw
Bank and Trust Company)
46
Waccamaw Bank and Trust
Company
46
Bank of Yadkin
30
Evans Savings Association
3
The Barberton State Bank (change
title to The American Bank of
Commerce)
3
The Bank of Manchester Company 6
The Winchester Bank Company
(change title to The First State
Bank of Adams County)
6
The Merchants National Bank of
Allentown
8
The First National Bank of
Bakerton
40
First Valley Bank
11
The First National Bank and Trust
Company of Bethlehem
11

FEDERAL DEPOSIT INSURANCE CORPORATION

S ta te

Bank

Chambersburg

National Valley Bank and Trust
Company
50
Valley Bank and Trust Company 50
22
Doylestown Trust Company
The First National Bank of
41
Hughesville
Industrial Valley Bank and Trust
Company
22
The Union National Bank of
52
Jersey Shore
Johnstown Bank and Trust
Company
40
Commonwealth Bank and
Trust Company
5 41, 52
The Citizens National Bank of
Muncy
Continental Bank and Trust
Company
8
Bank of Pennsylvania
31
Washington Street Bank and
31
Trust Company
Elk County Bank and Trust
4
Company
4
The Saint Marys National Bank
C o m m o n w e a lth B a n k a n d Trust
Company
Miners National Bank of
15
Wilkes-Barre
15
United Penn Bank

Doylestown
Hughesville
Jenkintown
Jersey Shore
Johnstown
Muncy

Norristown
Reading

St. Marys

W e lls b o ro

Wilkes-Barre

South Carolina

No.
(T a b le 15)

T o w n or C ity

Blacksburg
Charleston
Cheraw
Dillon
Great Falls
Greenville

Greenwood
Johnston
Lake View
Nichols
North Augusta
Orangeburg

Blacksburg State Bank
69
The Carolina Bank and Trust
Company of Charleston
44
Peoples Bank of Cheraw
56
Citizens Bankof South Carolina 25, 56
Bank of Great Falls
56
First Piedmont Bank and Trust Co. 26
Piedmont Bank (change title to
First Piedmont Bank and Trust
Company)
26
Southern Bank and Trust
Company
69
State Bank and Trust Company 16, 44
Ridge Banking Company
16
Lake Banking Company
56
The Bank of Nichols
25
North Augusta Banking Company 16
The Southern National Bank of
Orangeburg
16

BANK ABSORPTIONS APPROVED BY THE CORPORATION

35
No.
(Table 15)

State

Town or City

Bank

Texas

Aransas Pass

First State Bank
The First State Bank, Aransas
Pass, Texas
Reagan State Bank
The Big Lake State Bank
Bank of Texas
Esperson State Bank (change
title to Bank of Texas)

Big Lake
Houston

Virginia

Annandale
Arlington
Charlottesville

Driver
Falls Church
Herndon

Nansemond
Virginia Beach

Wisconsin

45
45
42
42
39
39

First Virginia Bank
36
Arlington Trust Company, Inc.
19
Old Dominion Bank
36
Citizens Bank and Trust Company 18
Jefferson Bank of Charlottesville
(change title to Citizens Bank
and Trust Company of
18
Charlottesville)
First County Bank (change title to
70
The Bank of Nansemond)
36
Falls Church Bank
Republic Bank and Trust
Company (change title to
Arlington Trust Company,
19
Incorporated)
70
The Bank of Nansemond
Ocean Bank (change title to
People's Bank of Virginia
54
Beach)
People's Bank of Virginia Beach 54

Amery
Deer Park
Lime Ridge
North Freedom
Reedsburg
Spring Green

Union State Bank
71
State Bank of Deer Park
71
64
The State Bank of Lime Ridge
64
Bank of North Freedom
64
The Reedsburg Bank
53
State Bank of Spring Green
The Farmers State Bank of Spring
Green (change title to Bank of
53
Spring Green)

American Samoa

Pago Pago, Tutuila

Bank of American Samoa

Uruguay

Montevideo

Banco del Este, S.A.

Other

FEDERAL DEPOSIT INSURANCE CORPORATION

Table 15. DESCRIPTION OF EACH MERGER, CONSOLIDATION,
ACQUISITION OF ASSETS OR ASSUMPTION OF LIABILITIES
APPROVED BY THE CORPORATION DURING 1969
R esources
(i
\\ 1n1
th o u s a n d s
o f d o lla rs )

No. 1
Bank of America National Trust
and Savings Association
San Francisco, California
to acquire the assets and assume the
deposit liabilities of its noninsured
subsidiary
Banco del Este, S.A.
Montevideo, Uruguay

B a n k in g O ffices
In
o p e ra tio n
i

18,337,978

281

To be
o p e ra te d

S u m m a ry re p o r t b y A tto r n e y G e n e ra l, S e p te m b e r 2 0 , 1 9 6 8
Banco del Este is a small bank headquartered in Montevideo, Uruguay with
a service area predominantly agricultural. Permission was granted Bank of
America by the Board of Governors of the Federal Reserve System on March
14, 1968 to acquire Banco del Este as a wholly owned subsidiary.
The proposed merger would convert an already existing banking subsidiary
of Bank of America into a branch of Bank of America. Thus, the proposed
merger would have no effect on competition.
B a sis f o r C o rp o ra tio n a p p ro v a l, J a n u a ry 3 0 , 1 9 6 9
Bank of America National Trust and Savings Association, San Francisco, Cali
fornia (Applicant), total deposits $15.8 billion, has applied, pursuant to Section
18(c) of the Federal Deposit Insurance Act, for the Corporation’s approval to
acquire assets and assume liability to pay deposits made in Banco del Este,
S.A., Montevideo, Uruguay (Banco), total deposits $70,000, a noninsured sub
sidiary of Applicant.
The subject banks are not now in competition with each other because of
their affiliation, which was effected in April 1968, nor were they in competition
for some time prior to that date since Applicant has no offices in Uruguay and
its office closest to Banco is 150 miles distant in Buenos Aires, Argentina.
There are 28 banks operating 198 offices in Montevideo, including one U.S.
bank and a number of other banks foreign to Uruguay. Banco operates one
office and is among the three smallest banks in the city. Applicant has more
than 900 domestic offices and is represented in 62 countries through its over
seas branches, representative offices, and affiliates. The overall proposal repre
sents the entry into Uruguay of an additional U.S. bank which, by virtue of its

BANK ABSORPTIONS APPROVED BY THE CORPORATION

vast resources and facilities, should tend to increase competition, especially in
the field of international banking.
The Board of Directors is of the opinion that the proposal would not lessen
competition, tend to create a monopoly, or in any other manner be in restraint
of trade.
The factors of financial and managerial resources, future prospects, and
convenience and needs of the community to be served are satisfactory with
respect to the merging banks and are so projected for the resulting bank.
On the basis of the information presented and other information available to
the Corporation, the Board of Directors has concluded that approval of the
bank's application is warranted.

R esources
(in
th o u s a n d s
o f d o lla rs )

No. 2
Community Bank of Linden
Linden, New Jersey
(change title to Community State
Bank & Trust Company)
to merge with
State Bank of Rahway
Rahway

B a n k in g O ffices
In
o p e ra tio n

33,456

17,745

To be
o p e ra te d

S u m m a ry re p o r t by A tto r n e y G e n e ra l, O c to b e r 3 0 , 1 9 6 8
Community Bank and State Bank are located in the contiguous communities
of Linden (population 44,000), and Rahway (population 28,000); this area is
adjacent to Elizabeth, New Jersey, on the north. Two banks, Community Bank
and an Elizabeth based bank (total deposits $176 million) operate six offices
in Linden, and two banks, State Bank and another Elizabeth based bank, (total
deposits $185 million) operate three offices in Rahway. The merging banks are
each the smaller bank in their respective communities.
All three of Community Bank's offices are within 2 l/ 2 miles of State Bank's
two offices. The nearest offices are about i y 2 miles apart. Thus, it is clear
that there is direct competition between the merging banks, which would be
eliminated by the proposed merger.
As of June 30, 1966, four banks operated seven offices in the combined Linden-Rahway market. Two other small banks each operate one office near the
borders of Linden-Rahway. If one includes these banks in the market, as of
June 30, 1966, Community Bank had the second largest share, or 23 percent,
of total IPC demand deposits, and State Bank, had the fourth largest share, or
11 percent, of IPC demand deposits. If this merger had been consummated,
the combined bank would have had the largest share, or 34 percent of such
deposits, and three banks, two of which are headquartered in Elizabeth, would
have had about 88 percent of IPC demand deposits.
Consummation of this merger would eliminate existing competition, would
increase concentration in the Linden-Rahway area, and would eliminate a sig
nificant independent competitor.

FEDERAL DEPOSIT INSURANCE CORPORATION

In view of these facts, we conclude that the competitive effects of this
merger would be significantly adverse.
S u p p le m e n ta l

re p o r t by A tto r n e y G e n e ra l, J a n u a ry 15, 1 9 6 9

This is in regard to our report of October 30, 1968, on the competitive fac
tors involved in the proposed merger of State Bank of Rahway, Rahway, New
Jersey ( “ State Bank"), into Community Bank of Linden, Linden, New Jersey
( “ Community Bank"). Our report concluded that the merger would eliminate
existing competition between the banks, increase concentration, and eliminate
a significant independent competitor and that therefore its competitive effect
. . . would be significantly adverse.
It has since come to our attention that the two banks have had common
management ever since the second bank was organized in 1958. It appears
that in 1955, a group of local citizens had obtained a charter for Community
Bank, which was to be a progressive bank, responsible to the banking needs of
the local Linden community. In 1958, a group of citizens from Rahway
approached Community Bank’s management about creating the same type of
bank for Rahway. Under New Jersey law, which prohibited de novo branching
into any community where a bank operated an office,1 Community Bank could
not branch into Rahway. In response to this invitation, management personnel
of Community Bank were instrumental in the organization of State Bank and
the two banks have been commonly managed since that time, although there
is divergence in shareholding and some of the lower management is separate.
We do not normally conclude that a bank merger will not have anticompeti
tive effects merely because common management or ownership exists between
the merging banks. A merger between such banks may permanently eliminate
the potential for competition between them if those common arrangements
should be terminated at some time in the future. This is particularly so where
the common arrangements are of recent origin or show signs of being a specu
lative venture. Moreover, such common ownership may itself raise problems
under the antitrust laws.
However, when the history of common management of merging banks goes
back to the organization of the second bank, such organization may be similar
to the establishment of a de novo branch by the first bank. In the present cir
cumstances, it does not appear that the proposed merger, which would make
State Bank an actual branch of Community Bank, would eliminate any mean
ingful competition between the two banks.
B a s is fo r C o rp o ra tio n a p p ro v a l, F e b ru a ry 2 7 , 1 9 6 9
Community Bank of Linden, Linden, New Jersey (Applicant), an insured
State nonmember bank with total deposits of $29,413,000, has applied, pur
suant to Section 18(c) and other provisions of the Federal Deposit Insurance
Act, for the Corporation’s prior approval to merge with State Bank of Rahway,
Rahway, New Jersey (State Bank), which has total deposits of $15,612,000.
The banks would merge under the charter of Applicant and with the title
“ Community State Bank & Trust Company"; and, as an incident to the merger,
the two offices of State Bank would become branches of Applicant, increasing
the number of its offices to five.
Competition. Linden (population 39,900) and Rahway (population 27,700)
are contiguous communities located in the southeastern part of Union County,
1 New Jersey Statutes Annotated §17: 9A-19. This provision has ju s t been amended
to provide only home office protection against de novo branching. Assembly B ill No 677
(1968).

BANK ABSORPTIONS APPROVED BY THE CORPORATION

which is part of the Newark SMSA as well as the New York-Northeastern New
Jersey Standard Consolidated Area, which had a population of 14,759,400 in
1960. The farthest distance between offices of the participating banks is 2.75
miles and the shortest distance between offices is 1.5 miles. The trade areas
served by the participating banks overlap to some extent, but the number of
common customers is not significant.
Applicant could not branch de novo into Rahway; so, at the request of
Rahway residents, five directors of Applicant organized State Bank. Since the
organization of State Bank in 1959 a major portion of Applicant's stock has
been held by the same individuals who also hold a major portion of State
Bank’s stock. Originally, five of State Bank's nine directors were also directors
of Applicant, and top management of the participating banks has been the
same since State Bank was organized. The policies of the participating banks
are the same, and the offices of State Bank are operated more like offices of
Applicant than as an independent competitive bank.
There has recently been a change in the branching law in the State of New
Jersey, which will become effective in 6 months. Under the new law the State
is divided into three regions and each bank can legally establish de novo
branches anywhere within the district, except for those municipalities wherein
the main office of a bank is located. Consummation of this proposal would
open Rahway to de novo branching by all of the banks located in the second
district.
The resulting bank would have five of the 20 commercial banking offices in
its trade area, and it would rank second with 27.1 percent of the IPC deposits.
In addition to the participating banks there are seven commercial banks oper
ating offices in the resulting bank’s trade area. Of these seven, three are more
than twice the size of the resulting bank. The largest bank operating in the
resulting bank's trade area had total IPC deposits of over $161 million as of
June 29, 1968, and it has two offices in Rahway and 16.8 percent of the IPC
deposits in the resulting bank's trade area. The second largest bank operating
in the resulting bank’s trade area had total IPC deposits of over $160 million
as of June 29, 1968, and it has three offices in Linden and 29.6 percent of
the IPC deposits in the resulting bank’s trade area.
In view of the common stockholders and management, there is very little, if
any, direct competition, between the participating banks, which would be elim i
nated by this proposal; and while it is possible that the participating banks
could become competitive sometime in the future, this is not regarded as a
likely prospect. This proposal should enable the resulting bank to compete
more effectively with the much larger institutions operating in the area.
The Board of Directors is of the opinion that the proposed merger would not
substantially lessen competition, tend to create a monopoly, or in any other
manner be in restraint of trade.
Financial and Managerial Resources and Prospects. These factors have been
favorable with respect to the merging banks and are so projected for the result
ing bank.
Convenience and Needs of the Community to be Served. The increased lend
ing lim it would be of benefit to customers of both merging banks, which are
located in an economically expanding area. The resulting bank would also offer
longer banking hours and the services of a trust department, which the partici
pating banks do not now have.
On the basis of the above information and other information available to the
Corporation, the Board of Directors has concluded that the approval of the
bank's application is warranted.

FEDERAL DEPOSIT INSURANCE CORPORATION
R esources

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No. 3
The Barberton State Bank
Barberton, Ohio
(change title to The American
Bank of Commerce)
to acquire the assets and assume the
deposit liabilities of
Evans Savings Association
Akron

B a n k in g O ffices
In
o p e ra tio n

6,585

169,323

To be
o pe ra te d

S u m m a ry re p o r t by A tto r n e y G e n e ra l, A p ril 5, 1 9 6 8
Evans' competition with Barberton Bank, as well as with other commercial
banks in the Akron metropolitan area, is limited to time accounts and loans. It
is the second largest of eleven competing savings organizations.
Barberton's share of time and savings deposits in the market amounts to
less than one percent. The proposed acquisition might eliminate some limited
degree of competition between Evans and Barberton with respect to time
deposits and mortgage loans, but it does not appear that the impact would be
appreciable within either Akron, Ohio, or Summit County.
We do not consider that this proposed merger would have any important
effect upon competition within the area.
B a s is fo r C o rp o ra tio n a p p ro v a l, F e b ru a ry 2 7 , 1 9 6 9
The Barberton State Bank, Barberton, Ohio (Applicant), an insured State
nonmember bank with total deposits of $5 million, has applied, pursuant to
Section 18(c) and other provisions of the Federal Deposit Insurance Act, for
the Corporation’s prior consent to acquire the assets of and assume liability to
pay deposits made in Evans Savings Association, Akron, Ohio (Evans), a State
stock building and loan association which is a member of the FSLIC and Fed
eral Home Loan Bank and which has total deposits of $152 million. The trans
action would be effected under Applicant's charter and with the title ‘ The
American Bank of Commerce"; and, as an incident thereto, Applicant's main
and only office would be moved to Evans’ main office location, and Applicant's
office and Evans’ 13 branches would become branches of the resulting bank.
Competition Applicant’s sole office is in Barberton (population 33,800), 6.5
miles from Evans' main office in Akron, (population 290,000). Applicant’s ser
vice area is Barberton and vicinity and is entirely within Evans’ service area of
Summit County. Their closest offices are 2.75 miles apart. The participating
institutions are competitive with each other only for time and savings deposits
and mortgage loans, and the degree of competition between them for that type
of business is limited. Applicant has relatively few mortgage loans and the
smallest proportion of time and savings deposits in the area. Moreover, it is
experiencing severe asset and management problems and is an ineffective
competitor.
Applicant is the smallest bank in the service area, and Evans is the second
largest savings association. The proposal would introduce a new bank into
Akron, which would be fourth largest of five banks headquartered there. Appli
cant presently competes in Barberton with two offices of the county's largest
bank, which has deposits of over $400 million. The significant increase in

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Applicant’s size would have no adverse competitive effects in Barberton. The
conversion of Evans' 14 offices to commercial bank offices should tend to
stimulate banking competition in Akron and throughout Summit County.
The Board of Directors is of the opinion that the effect of the proposed pur
chase and assumption transaction would not be substantially to lessen compe
tition, tend to create a monopoly, or in any other manner be in restraint of
trade.
Financial and Managerial Resources, Future Prospects, and Convenience and
Needs of the Community to be Served. These factors are favorable with
respect to Evans and are so projected for the resulting bank. The proposal
would eliminate a small commercial bank with severe asset and managerial
problems. The convenience and needs of Summit County would be more ade
quately met by the addition of the services of another commercial bank to
Akron and 14 bank offices to the county.
On the basis of the information presented and other information available to
the Corporation, the Board of Directors has concluded that approval of the
bank's application is warranted.

No. 4
Elk County Bank and Trust Company
St. Marys, Pennsylvania
to merge with
The Saint Marys National Bank
St. Marys

Resources
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B a n k in g O ffices
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21,067

15,495

To be
o pe ra te d

S u m m a ry re p o rt by A tto r n e y G e n e ra l, J a n u a ry 16, 1 9 6 9
In these circumstances, where the two merging banks have been subject to
common control since the second bank was organized, we conclude that the
proposed merger would have no significant effect on competition.
B a s is fo r C o rp o ra tio n a p p ro v a l, F e b ru a ry 2 7 , 1 9 6 9
Elk County Bank and Trust Company, St. Marys, Pennsylvania, an insured
State nonmember bank with total deposits of $19,056,000, has applied, pur
suant to Section 18(c) and other provisions of the Federal Deposit Insurance
Act, for the Corporation's prior approval to merge with The Saint Marys
National Bank, also of St. Marys, which has total deposits of $13,010,000. The
banks would merge under the charter and with the title of the applicant. Saint
Marys has permission to open a branch, and the applicant has requested that
it be permitted to establish this de novo branch, which would increase the
number of its offices to four.
Competition. The two banks have been owned and operated by the same
families since their organization, and they do not compete with each other.
The only discernible effects on competition are that the resulting bank would
build a modern plant, enabling it to compete more effectively in the twocounty service area, and that the elimination of one bank and its name might
make the area more attractive for an out-of-town bank to establish a branch.
Other than these, the proposal would eliminate a legal technicality and, of
course, separate FDIC insurance coverage of depositors in both banks.

FEDERAL DEPOSIT INSURANCE CORPORATION

The Board of Directors is of the opinion that the proposed merger would not
substantially lessen competition, tend to create a monopoly, or in any other
manner be in restraint of trade.
Financial and Managerial Resources and Future Prospects. These factors
have been favorable with respect to the merging banks and are so projected
for the resulting bank. Future deposit growth is expected to be inhibited during
the period of conversion from the present antiquated buildings to a modern,
efficient building, and then to resume a normal pace. Present cramped condi
tions are not conducive to real growth. The buildings are adjacent and will be
replaced, in two stages, by one new building.
Convenience and Needs of the Community to be Served. Modern quarters
would serve the convenience and needs of the customers at the main office,
who sometimes have to stand in the rain while waiting their turn at a window,
and who have to stand while discussing loans and other business. The
increased lending lim it would be of benefit to customers throughout the ser
vice area: Elks County (population 38,000) and Cameron County (population
8,000). Branch service would be continued as at present; and one more
branch would be opened, as presently scheduled.
Another aim of the proponents is, by building a new and modern banking
house, to make more attractive the small and somewhat shabby business
center of the town of St. Marys.
On the basis of the above information and other information available to the
Corporation, the Board of Directors has concluded that approval of the bank’s
application is warranted.

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No. 5
Commonwealth Bank and Trust Company
Wellsboro, Pennsylvania
to merge with
The Citizens National Bank of Muncy
Muncy

B a n k in g O ffices
In
o p e ra tio n

20,365

6,142

To be
o pe ra te d

S u m m a ry re p o r t by A tto r n e y G e n e ra l, O c to b e r 3 1 , 1 9 6 8
The two banks serve different, widely spread, geographic areas and there are
several banks in the intervening area. Thus, there does not seem to be any
existing competition which could be eliminated by this merger.
Under Pennsylvania law, either bank could branch de novo into the service
area of the other. In Lycoming County, there were, as of June 30, 1966, 13
commercial banks operating 17 offices and holding total deposits of $161 m il
lion. At that time, Muncy Bank had about 3 percent of total county deposits;
three banks headquartered in Williamsport accounted for more than 50 percent
of such deposits.
The proposed merger would eliminate Commonwealth Bank, the largest bank
in Tioga County, as a potential competitor by de novo entry into Lycoming
County. However, besides the three banks in Williamsport, there are at least
three other banks larger than Commonwealth Bank which can also legally
branch de novo into Muncy and Lycoming County.

BANK ABSORPTIONS APPROVED BY THE CORPORATION

B a s is f o r C o rp o ra tio n a p p ro v a l, F e b ru a ry 2 7 , 1 9 6 9
Commonwealth Bank and Trust Company, Wellsboro, Pennsylvania (Appli
cant), an insured State nonmember bank with total deposits of $17,884,000,
has applied, pursuant to Section 18(c) and other provisions of the Federal
Deposit Insurance Act, for the Corporation's prior approval to merge with The
Citizens National Bank of Muncy, Muncy, Pennsylvania, which has total depos
its of $5,590,000. The banks would merge with the title and under the charter
of Applicant. The main office would be at Muncy; the present main office at
Wellsboro would be operated as a branch, together with presently existing
branches and one drive-up facility approved but not yet in operation. The
Muncy bank has no branches.
Competition. The two banks operate in completely separate areas and do
not compete with each other. The only apparent impact on competition would
appear to be the shift from a $6 million bank to a $27 million bank with head
quarters in Lycoming County, a service area of approximately 109,000 people,
including the city of Williamsport. This shift should positively stim ulate compe
tition in that area. It would also enable the resulting bank to branch into 10
adjacent counties, if it so chose, instead of four. Meanwhile, at the branch in
Wellsboro (formerly the main office), there is no reason to expect any dim inu
tion of competition or service to that area, which comprises approximately
35,000 people in Tioga County and the eastern third, more or less, of Potter
County.
The Board of Directors is of the opinion that the proposed merger would not
lessen competition, tend to create a monopoly, or in any other manner be in
restraint of trade.
Financial and Managerial Resources and Future Prospects. Both banks are
sound and well-managed institutions, with no problems of consequence. Nei
ther has a management succession problem. Capitalization is considered ade
quate, and earnings have been at reasonable levels. It is expected that the
resulting bank will continue the patterns of growth, profitability, and retention
of earnings adequate to margin growth. It is anticipated that growth will be
stimulated by the proposed merger, but not so drastically as to put great pres
sure on the margin of capital protection. By greater diversification of its eco
nomic and geographic base, Applicant should become a stronger bank, less
vulnerable to adversity in one or two industries.
Convenience and Needs of the Communities to be Served. Applicant was
formed in 1965, when national banks in Galeton, Lawrence, and Westfield were
merged into the Tioga County Savings and Trust Company and continued as
branches of the bank under its present name. Applicant plans to relocate the
Galeton branch and establish a drive-up facility in Wellsboro. Since that
merger, deposits have risen from $15,950,000 (1965 average) to $16,920,000
(for 1966). They decreased to $16,898,000 (average for 1967), attributable al
most entirely to a decrease in public funds. It appears patent that the institution
has been serving the needs of the community, and logical that it will continue
to do so, even though the present main office will become a branch.
The Muncy bank was organized in 1886 and has operated successfully since
then. Although it has no branches, its deposits have increased over 20 percent
over the same 3-year period: from $4,155,000 to $5,054,000. Evidently it has
been of service to the convenience and needs of the community. With the
advent of a management fam iliar with branching, it is not unlikely that the
resulting bank will provide even more service to the community (Lycoming
County), possibly including branches there or in adjoining counties.

FEDERAL DEPOSIT INSURANCE CORPORATION

On the basis of the above information and other information available to the
Corporation, the Board of Directors has concluded that approval of the applica
tion is warranted.
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No. 6
The Winchester Bank Company
Winchester, Ohio
(change title to The First State Bank of
Adams County)
to consolidate with
The Bank of Manchester Company
Manchester

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B a n k in g O ffices
In
o p e ra tio n

4,689

2,543

To be
o p e ra te d

S u m m a ry re p o r t by A tto r n e y G e n e ra l, N o v e m b e r 2 9 , 1 9 6 8
Winchester (population 1,600) and Manchester (population 2,200), 20 miles
to the south, are both located in Adams County in an area which is principally
agricultural.
Only one bank operates in Winchester and two banks operate in Manchester:
Manchester Bank and the Farmers Bank of Manchester (total deposits, $1.7
m illion); there is one intervening bank about half way between Manchester and
Winchester at West Union. Because of the distance separating the merging
banks, their small size, and the presence of an intervening bank, it is doubtful
that the merging banks compete with one another to any significant extent.
Although Ohio law would permit each of the consolidating banks to open a
de novo branch in the town where the other's office is located, it is doubtful
that this right would be exercised because of the small size of the banks as
well as of the towns involved.
B a s is f o r C o rp o ra tio n a p p ro v a l, M a rc h 12, 1 9 6 9
The Winchester Bank Company, Winchester, Ohio (Applicant), an insured
State nonmember bank with total deposits of about $4.3 million, has applied,
pursuant to Section 18(c) and other provisions of the Federal Deposit Insur
ance Act, for the Corporation's prior approval to consolidate with The Bank of
Manchester Company, Manchester, Ohio (Manchester Bank), also an insured
State nonmember bank, which has total deposits of about $2.3 million. The
banks would consolidate under the charter of Applicant and with the title “ The
First State Bank of Adams County"; and, as an incident thereof, the sole
office of Manchester Bank would become a branch of the resulting bank,
increasing the total number of offices to three.
Competition. The participating banks are in Adams County (population about
19,500), which is located in southwestern Ohio and borders on the Ohio River.
Applicant's service area is the northwestern corner of Adams County, but it
includes small portions of Highland and Brown Counties. Manchester Bank's
service area extends for about 5 miles in all directions from the village of Man
chester, except to the south, where the Ohio River is an effective barrier. Compe
tition between the participating banks is virtually nonexistent. Their service
areas are separate and distinct; their closest offices are separated by 20 miles
of rural territory; and there is only a nominal volume of business derived by
each bank from the service area of the other. Furthermore, the potential for
competition to increase is slight.

BANK ABSORPTIONS APPROVED BY THE CORPORATION

The proposal would unite the two smallest of the four small banks in Adams
County to form the second largest bank, but all three of the remaining banks
would be similar in size, so that the effect on concentration would not be sig
nificant.
The Board of Directors is of the opinion that the proposed transaction would
not substantially lessen competition, tend to create a monopoly, or in any
other manner be in restraint of trade.
Financial and Managerial Resources and Future Prospects. The banking fac
tors are considered satisfactory with respect to the individual participating
banks, as they are with respect to the resulting bank.
Convenience and Needs of the Community to be Served. The principal effect
of this proposal appears to be having three, rather than four, banks of compa
rable size competing in the limited Adams County market; two of these banks
are now significantly smaller than the others. In addition, an increased lending
lim it would be made available locally to the communities served by the subject
banks.
Based on the foregoing and on other information available to the Corpora
tion, the Board of Directors has concluded that approval of the bank's applica
tion is warranted.
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No. 7
California Canadian Bank
San Francisco, California
to purchase the assets and assume
the deposit liabilities of
City Bank of San Diego
San Diego

B a n k in g O ffices
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92,756

18,566

To be
o pe ra te d

S u m m a ry re p o r t by A tto r n e y G e n e ra l, J a n u a ry 2 8 , 1 9 6 9
California Canadian Bank maintains its head office and two branches in San
Francisco, and five additional branches, located in all the principal counties of
California except San Diego County. City Bank of San Diego has its main office
and two branches in San Diego.
The closest branches of the merging banks are one hundred ten miles apart,
with a m ultitude of other banks in the intervening area. Therefore, the pro
posed merger would not appear to eliminate any significant amount of existing
competition between the two banks.
Since California law permits statewide branch banking, CCB could legally
branch de novo into San Diego County. CCB has demonstrated some propen
sity for internal expansion by establishing six new branch offices since 1965.
CCB is not, however, one of the most likely entrants into the San Diego
market. There are numerous banks larger than CCB that are not yet operating
in San Diego including the nation’s eleventh and twelfth largest commercial
banks, each with deposits of over $3.5 billion.
B a s is f o r C o rp o ra tio n a p p ro v a l, M a rc h 2 7 , 1 9 6 9
California Canadian Bank, San Francisco, California (Applicant), an insured
State nonmember bank with total deposits of $80,314,000, has applied, pur
suant to Section 18(c) and other provisions of the Federal Deposit Insurance
Act, for the Corporation’s prior approval to purchase the assets and assume

FEDERAL DEPOSIT INSURANCE CORPORATION

the liabilities of City Bank of San Diego, San Diego, California (City Bank),
which has total deposits of $16,267,000. The two offices of City Bank would
become branches of Applicant. City Bank also has permission to establish a
third office. Applicant has requested that it be permitted to establish this de
novo branch, which would increase the number of its offices to 11.
Competition. San Francisco (population 786,000) is 522 miles north of San
Diego (population 660,000). Applicant's branch in Los Angeles is 110 miles
north of San Diego. These are the three largest cities on the west coast of the
United States. Numerous offices of other banks intervene between Los Angeles
and San Diego. There is no competition between the two banks.
California banking is dominated by several statewide banks, notably Bank of
America, N.T. and S.A., which holds 43 percent of deposits and loans. Appli
cant would hold 0.2 percent of both deposits and loans after consummation of
the proposed transaction. It has been holding a decreasing share of the
market for many years. By establishing branches in San Diego, it hopes to
regain its former position in California banking. In the six counties in which
the two banks operate, Applicant holds 0.3 percent of total deposits. City bank
holds 0.9 percent in San Diego County and an insignificant percentage in the
six counties. Senior officials of banks in San Diego were in general agreement
that the proposed transaction would stimulate competition in that market. It
would have no measurable effect in the Los Angeles or San Francisco Bay
areas.
The Board of Directors is of the opinion that the proposed transaction would
not substantially lessen competition, tend to create a monopoly, or in any
other manner be in restraint of trade.
Financial and Managerial Resources and Prospects. These factors have been
favorable with respect to the two banks and are so projected for the resulting
bank.
Convenience and Needs of the Communities to be Served. The increased
lending lim its would be of benefit to customers of both banks, which are
located in economically expanding areas. The proposal would introduce trust
services in the San Diego operation, which does not now offer them.
On the basis of the above information and other information available to the
Corporation, the Board of Directors has concluded that the approval of the
bank’s application is warranted.
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No. 8
Continental Bank and Trust Company
Norristown, Pennsylvania
to merge with
The Merchants National Bank
of Allentown
Allentown

B a n k in g O ffices
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501,096

154,601

To be
o p e ra te d

S u m m a ry r e p o r t b y A tto r n e y G e n e ra l, J a n u a ry 16, 1 9 6 9
Allentown (1960 population 108,000), located about fifty miles north-northwest of Philadelphia, is the principal city in Lehigh County, Pennsylvania. Beth
lehem (1960 population 75,000), located partly in Lehigh County and partly in
Northampton County, is contiguous to Allentown on the east. Continental oper

BANK ABSORPTIONS APPROVED BY THE CORPORATION

ates no offices in Lehigh County. The closest offices of the two banks are
approximately 20 miles apart, with several banks in the intervening area. How
ever, there appears to be some competition between them, especially fo r larger
deposits and loans.
As of June 30, 1968, there were five banks headquartered in the AllentownBethlehem market and six smaller banks, each with total deposits of less than
$20 million, headquartered elsewhere in Lehigh County. In terms of total
deposits, Merchants National is the second largest bank operating in the Allentown-Bethlehem market and the third largest operating in Lehigh County. In
the Allentown-Bethlehem market as of June 30, 1966, Merchants National had
the third largest share, or about 20 percent, of IPC deposits, and three banks
had about 70 percent of such deposits. In Lehigh County, as of the same
date, Merchants National had the second largest share, or about 27 percent of
IPC deposits.
Pennsylvania law permits de novo branching by a commercial bank into all
counties which are contiguous to the county in which the bank's head office is
located. Since Montgomery County is contiguous to Lehigh County, Continental
could be permitted to branch de novo into Lehigh County and into Allentown.
Most of the other large banks which operate in the Philadelphia four county
area are headquartered in Philadelphia County, which is not contiguous to
Lehigh, and thus may not branch into Lehigh County. Continental is the larg
est bank which can legally branch into Lehigh County. Moreover, it has been
active in de novo branching in recent years, having opened six new offices
since 1965, received approval for a seventh, and applied for approval fo r an
eighth. Thus, it appears that Continental is the most likely potential de novo
entrant into both Lehigh County and the Allentown-Bethlehem market.
The application states that Continental was recently denied permission by
the Pennsylvania Department of Banking to establish a de novo branch in
Lehigh County. However, given the prospects fo r growth in Allentown and
nearby Lehigh County as well as Continental's demonstrated desire to branch
de novo into the area, we believe that conditions will ultimately permit such
action by Continental. Moreover, even if de novo entry by Continental were not
possible, the proposed merger would foreclose the possibility of entry by Conti
nental by means of a merger with one of the small banks in the area.
The proposed merger would combine the most likely entrant into the large
and concentrated Allentown-Bethlehem and Lehigh County markets, either by
de novo branching or through merger with a small bank in Lehigh County, with
the second largest competitor there. Accordingly, it is our view that the pro
posed merger would have a significantly adverse effect on competition.
B a s is f o r C o rp o ra tio n a p p ro v a l, M a rc h 2 7 , 1 9 6 9
Continental Bank and Trust Company, Norristown, Pennsylvania (Applicant),
an insured nonmember bank with total deposits of $435,240,000, has applied,
pursuant to Section 18(c) and other provisions of the Federal Deposit Insur
ance Act, for the Corporation's prior approval to merge with The Merchants
National Bank of Allentown, Allentown, Pennsylvania (Merchants), which has
total deposits of $132,453,000. The banks would merge under the charter and
with the title of Applicant; and, as an incident to the merger, the 12 offices of
Merchants would become branches of Applicant, increasing the number of its
offices to 54.
Competition. The service area of Applicant, of which the population is esti
mated at 2,300,000, is essentially Philadelphia and southeastern Pennsylvania.
Of Applicant's 42 offices, 21 are in Philadelphia. The city of Philadelphia and

FEDERAL DEPOSIT INSURANCE CORPORATION

the surrounding area are heavily industrialized with diversified activity, exten
sive commercial services, port facilities, and an expanding residential popula
tion. The economy in the communities in the surrounding counties (Montgom
ery, Chester, and Delaware) where Applicant presently has branches, for the
most part, is geared to the economy of the greater Philadelphia area.
The service area of Merchants is confined to Lehigh County and the south
ern portion of Northampton County, including the city of Bethlehem, which
occupies a portion of both counties. Lehigh County is contiguous to Montgom
ery County on the north and the merger would expand Applicant's primary
service area to this region. The population of Merchants’ service area is esti
mated at 525,000. Allentown is a heavily industrialized community, part of the
Allentown-Bethlehem area which has experienced substantial population growth
in recent years.
The main offices of the participating banks are 47 miles apart, and the short
est distance between offices is the 28 miles separating Applicant's office at
Hatfield and Merchants' office at Emmaus. The two banks operate in separate
market areas with several other commercial banking offices in the intervening
area, and there is very little, if any, competition between them. Moreover,
there seems to be little potential for competition. Merchants has shown no
inclination to expand beyond the two counties it presently serves, and in 1968
the State Authority denied Applicant permission to establish a de novo branch
in Allentown. For these and other reasons, elimination of potential competition
is not considered a realistic objection to this proposal.
Applicant is the sixth largest commercial bank in its trade area, as meas
ured in terms of IPC deposits, and this proposal would not change that posi
tion. Two commercial banks and one mutual savings bank headquartered in
Philadelphia have IPC deposits of over $1 billion. With respect to this market
area, the merger would have no significant effect on competition. Any competi
tive effects would occur in the service area of Merchants, where it ranks fourth
in terms of IPC deposits. The resulting bank would be the largest bank operat
ing rn the Allentown area; however, this proposal would not intensify the con
centration in the service area of Merchants nor would it reduce the number of
banking alternatives. The primary trade area of the resulting bank would be
the six counties where its offices would be located plus small portions of some
adjacent counties. Within this trade area the resulting bank would have only
6.1 percent of the IPC deposits and five other commercial banks would have a
greater share of the market. The merger should tend to increase competition
in the area now served by Merchants.
The Board of Directors is of the opinion that the merger would not substan
tially lessen competition, tend to create a monopoly, or in any other manner be
in restraint of trade.
Financial and Managerial Resources and Future Prospects. Financial and
managerial resources are satisfactory with respect to both participating banks
and are so projected for the resulting bank. The earnings record of Merchants
has not been as good as Applicant’s; and the future prospects of Merchants, as
a part of the resulting bank, would be enhanced. Future prospects of the
resulting bank are favorable.
Convenience and Needs of the Community to be Served. As a result of the
merger, the Allentown-Bethlehem area would gain the advantage of a bank
with a larger lending lim it than any now available in the area. The resulting
bank would have a lending lim it of more than $3 million higher than Mer
chants' present lending limit. This proposal would not significantly benefit the
trade area served by Applicant, but it would permit the resulting bank to fill

BANK ABSORPTIONS APPROVED BY THE CORPORATION

the need for larger amounts of credit in the Allentown area and also provide
additional conveniences for that area. Additionally, the availability of a local
bank with branches in Philadelphia would be of some service.
Based on the foregoing and other information available to the Corporation,
the Board of Directors has concluded that approval of the application is war
ranted.

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No. 9
United Bank of Arizona
Phoenix, Arizona
to acquire the assets and
assume the deposit liabilities of
Bank of Yuma
Yuma

B a n k in g O ffices
In
o p e ra tio n

105,512

6,671

To be
o p e ra te d

S u m m a ry r e p o r t b y A tto r n e y G e n e ra l, J a n u a ry 16, 1 9 6 9
The United Bank of Arizona (“ United Bank") which resulted from a merger
in January, 1968, of four central Arizona banks, operates its main office and
four of its branch offices in Phoenix, and seven additional branch offices within
a radius of 40 miles from Phoenix.
The closest offices of the merging banks are 177 miles apart. Thus it
appears that there is little if any existing competition between them which
would be eliminated by the merger.
Arizona law permits statewide de novo branching. United Bank could, there
fore, be permitted to establish a de novo branch in Yuma or any other town or
city in Yuma County.
Yuma Bank, with about 10 percent of total Yuma County commercial bank
deposits, is the smallest of four banks operating in the county. It competes
directly with branches of the three largest banks in the state, with total depos
its of $1.1 billion, $675 million, and $292 million, respectively.
B a s is f o r C o rp o ra tio n a p p ro v a l, A p ril 3 , 1 9 6 9
United Bank of Arizona, Phoenix, Arizona (Applicant), an insured State non
member bank with total deposits of $92,201,000, has applied, pursuant to
Section 18(c) and other provisions of the Federal Deposit Insurance Act, for
the Corporation's prior approval to purchase assets and assume the liability
for deposits of Bank of Yuma, Yuma, Arizona (Yuma), which has total deposits
of $5,793,000. The resulting bank would operate under the charter and with
the title of Applicant; and, as an incident to the transaction, the one office of
Yuma would become a branch of Applicant, increasing the number of its
offices to 13.
Competition. The shortest distance between offices of the participating
banks is 177 miles, and each serves a separate and distinct trade area. Appli
cant’s primary trade area is the Phoenix SMSA, which had a population of
663,500 in 1960. Yuma is located in the extreme southwestern corner of the
State and serves a trade area with an estimated population of 40,000. There is

FEDERAL DEPOSIT INSURANCE CORPORATION

virtually no competition between the participating banks. Both banks are in
direct competition with the largest banks in Arizona. The resulting bank will
hold only 3.8 percent and 4.0 percent of the deposits and loans, respectively,
of banks in the State of Arizona.
The Board of Directors is of the opinion that the proposed transaction would
not substantially lessen competition, tend to create a monopoly, or in any
manner be in restraint of trade.
Financial and Managerial Resources and Future Prospects. Financial and
managerial resources of the participating banks are adequate, as they would
be for the resulting bank. Earnings of both Applicant and Yuma have not been
impressive, but the future prospects of the resulting bank are favorable.
Convenience and Needs of the Community to be Served. This proposed
transaction would have no appreciable effect in Applicant's present trade area,
but it would enable the resulting bank to better serve the convenience and
needs in the Yuma area. A major benefit to the Yuma area would be the larger
lending lim it, and there would also be an increase in services, including trust
and computer facilities.
Based on the foregoing information, the Board of Directors has concluded
that approval of the application is warranted.

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No. 10
New Hampshire Savings Bank
Concord, New Hampshire
to merge with
Pittsfield Savings Bank
Pittsfield

B a n k in g O ffice s
In
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97,454

3,734

To be
o p e ra te d

S u m m a ry re p o r t b y A tto r n e y G e n e ra l, J u ly 2 9 , 1 9 6 8
New Hampshire Savings Bank operates two offices in Concord and one in
Contoocook, 11 miles to the west. Pittsfield Savings Bank operates its only
office 13 miles east of Concord. All offices of both the merging banks are
located in lower Merrimack County, New Hampshire, (1960 population,
67,785), which is largely rural in nature.
The closest offices of the two merging banks are 13 miles apart, with no
intervening banking offices, and the two banks have a substantial number of
common deposit and loan accounts. Thus, the proposed merger would elim i
nate direct competition between the two banks.
New Hampshire Savings is the largest of five savings banks in the county,
holding about 50 percent of total deposits of the savings banks, while Pitts
field Savings is the smallest accounting for about 1.9 percent of such depos
its. When the market shares are adjusted to include time deposits of the six
commercial banks operating in the county, the resulting bank would still con
trol almost half the total time deposits.
The proposed merger would eliminate existing competition between New
Hampshire Savings and Pittsfield Savings and enhance the dominant position
of New Hampshire Savings, both in Merrimack County as a whole and in the

BANK ABSORPTIONS APPROVED BY THE CORPORATION

lower portion of that county where both banks have all their offices. The effect
of this merger on competition would be substantially adverse.
B a s is f o r C o rp o ra tio n a p p ro v a l, A p ril 11, 1 9 6 9
New Hampshire Savings Bank, Concord, New Hampshire (Applicant), an
insured mutual savings bank with total deposits of $85,777,000, has applied,
pursuant to Section 18(c) and other provisions of the Federal Deposit Insur
ance Act, for the Corporation's prior approval to merge with Pittsfield Savings
Bank, Pittsfield, New Hampshire (Pittsfield Savings), which has total deposits
of $3,348,000. The banks would merge under the charter and with the title of
Applicant; and, as an incident to the merger, the main and only office of Pitts
field Savings would become a branch of Applicant, increasing the number of
its offices to four.
Competition. Applicant is headquartered in Concord, which has a population
of 29,000. It operates one branch in Concord and one in Contoocook Village,
all located in the south-central part of the State. The only office operated by
Pittsfield Savings is situated in Pittsfield, which has a population of 2,400 and
is located 17 road miles northeast from Concord. The merging banks' closest
offices are 16 road miles apart.
In Concord, there are two other savings banks with IPC deposits totaling
$38.6 million and $28.9 million, as well as two commercial banks. Manchester,
the largest city in New Hampshire, is located 18 miles south of Concord via
Interstate Highway 93 and contains the State’s two largest mutual savings banks,
with IPC deposits totaling $172.5 million and $118.5 million, some of which
originate in the Pittsfield area. There is one other bank in Pittsfield, a small
commercial bank presently affiliated with the merging banks. As a condition to
the approval of the instant merger, this affiliation will be terminated.
Pittsfield Savings’ small size, restrictive loan policy, inability to keep pace
with sharply increased interest rates paid on savings deposits in Concord and
Manchester, dormant management situation, and incapacity to acquire the
services of a qualified executive officer, strongly suggest that it cannot effec
tively compete in its service area. Although Applicant has some business in
Pittsfield, Pittsfield Savings has almost none in Concord. As a result of the
merger, a small unit bank would be replaced by a branch of the larger Appli
cant, which would provide substantial benefits to the Pittsfield community.
The Board of Directors is of the opinion that the effect of the proposed
merger would not be substantially to lessen competition, tend to create a
monopoly, or in any other manner be in restraint of trade. Any anticompetitive
effects resulting from the merger would clearly be outweighed in the public
interest by the probable effect of the transaction in meeting the convenience
and needs of the community to be served. The customers at Pittsfield Savings
would immediately benefit from: 1. an increase in the rate of interest paid on
their savings accounts (from 4.5 percent to 5 percent); 2. a higher legal lend
ing lim it; 3. extended banking hours; and 4. more varied services. Modern
banking quarters and facilities to include a comm unity room would be provided
to replace the present structure, built in 1876. Moreover, terminating the
affiliation of the merging banks with the commercial bank in Pittsfield, as
required as a condition to approval of the merger, would result in the latter’s
independent status and encouragement to offer full financial services, including
facilities for savings deposits (which it has hitherto refrained from accepting).
Financial and Managerial Resources and Future Prospects. These factors are
favorable with respect to Applicant and are so projected for the resulting bank.
Management at Pittsfield Savings is aging and lacks depth; its chief executive

FEDERAL DEPOSIT INSURANCE CORPORATION

died in February 1967 and a qualified replacement has not been found. The
bank’s future prospects are dim.
Convenience and Needs of the Community to be Served. There would be
little change in Concord as a result of the merger. Most significant would be
the expanded services to be offered by the resultant branch bank in Pittsfield,
as just described, together with granting the commercial bank a better basis to
become more competitive and thus better serve the public.
On the basis of the above information, the Board of Directors has concluded
that approval of the bank's application is warranted.

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No. 11

B a n k in g O ffices
In
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First Valley Bank
Bethlehem, Pennsylvania
(in organization)
to merge with
The First National Bank and Trust
Company of Bethlehem
Bethlehem

To be
o p e ra te d

129,895

S u m m a ry re p o r t by A tto r n e y G e n e ra l, J a n u a ry
The merger is part of a transaction which will result in a
bank becoming a subsidiary of a one-bank holding company.
is merely part of a corporate reorganization and as such will
competition.

16, 1 9 6 9
presently existing
Thus, the merger
have no effect on

B a s is f o r C o rp o ra tio n a p p ro v a l, A p ril 11, 1 9 6 9
Pursuant to Sections 5 and 18(c) and other provisions of the Federal
Deposit Insurance Act, applications have been filed for Federal deposit insur
ance for First Valley Bank, Bethlehem, Pennsylvania (Valley Bank), a proposed
new bank in organization, and for consent to the merger of The First National
Bank and Trust Company of Bethlehem, Bethlehem, Pennsylvania (National),
which has total resources of $130 million, and Valley Bank, under the latter's
charter and with its title. The resulting bank will operate from the seven exist
ing locations and two approved but unopened branches of National.
The proposal involves the formation of a one-bank holding company to hold
stock ownership of National, which will convert to an insured State nonmem
ber bank through the simultaneous new bank formation and merger. The new
bank (Valley Bank) will not be in operation as a commercial bank prior to the
merger and will begin business at the present locations of National with the
latter's assets, liabilities, capital, and management.
Bethlehem is located in eastern Pennsylvania between Allentown and Easton,
and the three cities comprise the Lehigh Valley market area. The 1960 popula
tion of Bethlehem was 75,400. The economy, largely dominated by Bethlehem
Steel Corporation, is dependent upon industrial activities, which provide sub
stantial employment not only for local residents but for many persons who
commute considerable distances. In addition to National, there are six other

BANK ABSORPTIONS APPROVED BY THE CORPORATION
commercial
and holding
itself, would
ered relative

banks, in the three-city area, operating multiple branch systems
total deposits in excess of $570 million. The proposed merger, of
have no effect on competition. All factors required to be consid
to each application are favorably resolved.

On the basis of the above information, the Board of Directors has concluded
that approval of the applications for Federal deposit insurance and consent to
merge is warranted.

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No. 12
Pioneer Bank of Arizona
Phoenix, Arizona
to merge with
Westam, Inc.
Phoenix

59,535

—

B a n k in g O ffices
In
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To be
ope ra te d

—

S u m m a ry re p o r t by A tto r n e y G e n e ra l, F e b ru a ry 12, 1 9 6 9
[This proposal] is part of a transaction which will result in a presently exist
ing bank becoming a wholly owned subsidiary of a one-bank holding company.
Thus, [this] merger is merely part of a corporate reorganization and as such
will have no effect on competition.
B a s is f o r C o rp o ra tio n a p p ro v a l, A p ril 2 4 , 1 9 6 9
Pioneer Bank of Arizona, Phoenix, Arizona (Pioneer), an insured nonmember
bank with total deposits of $53 million, has applied, pursuant to the provisions
of Section 18(c)(1)(A) of the Federal Deposit Insurance Act, for the Corpora
tion's prior consent to merge under its charter and with its title with Westam,
Inc., Phoenix, Arizona, a nonbanking corporation formed for the sole purpose
of facilitating the formation of a one-bank holding company to own Pioneer.
Pioneer, the only operating bank involved in this proposal, presently oper
ates its main office and seven branches in Phoenix and one branch each in
Prescott and Scottsdale. Additionally, it has approval to establish a branch in
Sun City, which is not yet in operation. The merger, of itself, will not change
the number of offices or the services presently provided by Pioneer, which will
continue operations at the same locations and with the same assets, liabilities,
capital, and management.
Phoenix, the State capital and seat of Maricopa County, is located in southcentral Arizona. It is by far the largest city in the State, having a current esti
mated population of 525,000. Both the population and economy have
expanded substantially in recent years. The economy, which for many years
depended almost entirely on agriculture and tourism, now is oriented more to
industrial activity, which in 1966 accounted for about 43 percent of total per
sonal income of $2.2 billion. Banking in Arizona is concentrated in four banks
which held over 90 percent of total bank loans and deposits and operated 257
of the State's 292 banking offices as of October 30, 1968. The three largest
banks are headquartered in Phoenix. On the same date, Pioneer held only 1.7

FEDERAL DEPOSIT INSURANCE CORPORATION

percent of total State deposits and 2.5 percent of deposits in the Phoenix ser
vice area. The proposed merger, of itself, would have no effect on competition.
On the basis of the above information, the Board of Directors has concluded
that approval of the application is warranted.

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No. 13
The Cadillac State Bank
Cadillac, Michigan
to consolidate with
The Kalkaska State Bank
Kalkaska

B a n k in g O ffices
In
o p e ra tio n

44,953

5,660

To be
o p e ra te d

S u m m a ry r e p o r t b y A tto r n e y G e n e ra l, M a rc h 13, 1 9 6 9
The office of Cadillac Bank nearest to the Kalkaska Bank is in Fife Lake
(population 1,300), and about one mile from the western border of Kalkaska
County; there are no banking offices in the intervening area. These two offices
of the merging banks are the only banking offices within Kalkaska Bank's self
designated service area, which includes almost all of Kalkaska County. The
merger would, therefore, eliminate existing competition between the merging
banks and eliminate Kalkaska Bank as an independent bank that could be
acquired by some other bank not now serving this area. The interlocks and
common ownership between the banks do not avoid these anticompetitive
effects. They were recently accomplished and appear to be designed to facili
tate the merger and, in any event, they may not be permanent.
We conclude that the merger would have adverse competitive effects.
B a s is f o r C o rp o ra tio n a p p ro v a l, A p ril 2 4 , 1 9 6 9
The Cadillac State Bank, Cadillac, Michigan (Applicant), an insured State
nonmember bank with total deposits of $41,776,000, has applied, pursuant to
Section 18(c) and other provisions of the Federal Deposit Insurance Act, for
the Corporation's prior approval to consolidate with The Kalkaska State Bank,
Kalkaska, Michigan (State Bank), which has total deposits of $5,237,000. The
banks would consolidate under the charter and with the title of Applicant; and,
as an incident to the merger, the one office of State Bank would become a
branch of Applicant, which would increase the number of its offices to seven.
Competition. The population of Cadillac is currently estimated at 11,500, as
compared to 10,100 in 1960. It is located on inland Lakes Cadillac and Mitch
ell, 50 miles southeast of Traverse City and 47 miles east of Lake Michigan.
Kalkaska is 39 miles northeast of Cadillac, and State Bank is the only bank in
Kalkaska County. The community of Kalkaska (population 1,300) is the only
incorporated city or town in the county, which has a population of 4,300. The
shortest distance between offices of the participating banks is the 14 miles
between Kalkaska and Applicant's office at Fife Lake. The trade area served by
State Bank does not extend beyond Kalkaska County. Applicant’s primary ser
vice area consists of most of Wexford County and portions of Osceola and Mis
saukee and a very small part of Kalkaska and Grand Traverse Counties. Appli

BANK ABSORPTIONS APPROVED BY THE CORPORATION

cant's office at Fife Lake is very close to the Kalkaska County line, and there
is some overlapping of the trade areas served by the participating banks.
There is no significant amount of actual or potential competition which would
be eliminated by this proposal.
The Board of Directors is of the opinion that the proposed merger would not
substantially lessen competition, tend to create a monopoly, or in any other
manner be in restraint of trade.
Financial and Managerial Resources and Prospects. These factors are favor
able with respect to the participating banks and are so projected for the result
ing bank.
Convenience and Needs of the Community to be Served. This proposal is
not expected to have any noticeable effect in Applicant's trade area, but it
should benefit the trade area served by State Bank by providing new and
better services. Some of the benefits to the Kalkaska area would be a larger
lending lim it, trust services, and a new building including drive-in windows.
On the basis of the above information, the Board of Directors has concluded
that approval of the bank's application is warranted.

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No. 14
Wilkes County Bank & Trust Company
North Wilkesboro, North Carolina
(in organization; change title to The
Northwestern Bank)
to merge with
The Northwestern Bank
North Wilkesboro

B a n k in g O ffices
In
o p e ra tio n

225

443,702

To be
o p e ra te d

FEDERAL DEPOSIT INSURANCE CORPORATION

Charlotte, and Winston-Salem. This broad service area includes virtually all
types of economic activity in agriculture, industry, and tourism. Essentially,
the proposal involves the formation of a one-bank holding company to hold
stock ownership of Northwestern. Wilkes will not be in operation prior to the
merger and will begin business with Northwestern's title and will provide the
same services. The merger, of itself, would have no effect on competition. All
factors required to be considered relative to each application are favorably
resolved.
On the basis of the above information, the Board of Directors has concluded
that approval of the applications is warranted.

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No. 15

B a n k in g O ffices
In
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To be
o p e ra te d

United Penn Bank
Wilkes-Barre, Pennsylvania
(in organization)
to merge with
Miners National Bank of Wilkes-Barre
Wilkes-Barre

177,984

S u m m a ry r e p o r t by A tto r n e y G e n e ra l, M a rc h 3, 1 9 6 9
This proposed merger is part of a transaction which will result in a presently
existing bank becoming a wholly owned subsidiary of a one-bank holding com
pany. Thus, this merger is merely part of a corporate reorganization and as
such will have no effect on competition.
B a s is f o r C o rp o ra tio n a p p ro v a l, A p ril 2 4 , 1 9 6 9
Pursuant to Sections 5 and 18(c) and other provisions of the Federal
Deposit Insurance Act, applications have been filed for Federal deposit insur
ance for United Penn Bank, Wilkes-Barre, Pennsylvania (United), a proposed
new bank in organization, and for consent to the merger of Miners National
Bank of Wilkes-Barre, Wilkes-Barre, Pennsylvania (National), which has 11
offices and total resources of $178 million, and United, under the latter's
charter and with its title. The resulting bank will operate from the existing
locations of National.
The proposal involves the formation of a one-bank holding company to hold
stock ownership of National, which will convert to an insured State nonmem
ber bank through the simultaneous new bank formation and merger. United
will not be in operation as a commercial bank prior to the merger and will
begin business at the present locations of National with the latter's assets, lia
bilities, capital, and management.
National has provided needed and useful banking services to the WilkesBarre community on a convenient and successful basis for many years. The
subject proposal will not alter these services or the service area and, involving
only a change in title, change in charter, and change in form of corporate
organization, will, of itself, have no effect on competition. All factors required to
be considered relative to each application are favorably resolved.
On the basis of the above information, the Board of Directors has concluded
that approval of the applications is warranted.

BANK ABSORPTIONS APPROVED BY THE CORPORATION
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No. 16
State Bank and Trust Company
Greenwood, South Carolina
to merge with
North Augusta Banking Company
North Augusta
and
Ridge Banking Company
Johnston
and
The Southern National Bank of
Orangeburg
Orangeburg

B a n k in g O ffices
In
o p e ra tio n

To be
o p e ra te d

135,653

7,136

6,285

16,056

S u m m a ry re p o r t b y A tto r n e y G e n e ra l, F e b ru a ry 12, 1 9 6 9
The proposed merger would eliminate little, if any, effective competition
between State Bank and North Augusta Banking due to the long standing
common ownership and control between the banks, dating back to the time of
organization of North Augusta Banking. The merger of Ridge Banking into
State Bank would eliminate some existing competition and the development of
greater competition between the merging banks. The merger of State Bank and
Southern National would eliminate potential competition between the merging
banks.
B a s is f o r C o rp o ra tio n a p p ro v a l, A p ril 3 0 , 1 9 6 9
State Bank and Trust Company, Greenwood, South Carolina (Applicant), an
insured State nonmember bank with total deposits of $123,218,900, has applied
pursuant to Section 18(c) and other provisions of the Federal Deposit Insur
ance Act, for the Corporation's prior approval to merge with North Augusta
Banking Company, North Augusta, South Carolina (North Bank), an insured
State nonmember bank with total deposits of $6,293,300; Ridge Banking Com
pany, Johnston, South Carolina (Ridge Bank), an insured State nonmember
bank with total deposits of $5,440,300; and The Southern National Bank of
Orangeburg, Orangeburg, South Carolina (South Bank), which has total depos
its of $14,420,000. The banks would merge under the charter and with the
title of Applicant; and, as an incident to the transactions, the 10 offices of
North Bank, Ridge Bank, and South Bank would become branches of Appli
cant, increasing the number of its offices to 43.
Competition. Applicant operates 33 offices in 11 of the 46 counties in the
northwestern part of South Carolina. Applicant is the fourth largest bank in the
State, and these proposals would not change that position. As a result of
these proposals, it is believed that Applicant would become more competitive
with its three larger competitors.
North Bank operates two offices in North Augusta (population 10,300), and
the closest office of Applicant is located at Langley, 8 miles northeast. North
Bank's primary competition consists of two branches of larger banks located in
North Augusta. One of these branches is operated by an Aiken-based bank
with total deposits of almost $20 million and the other is part of a statewide
system, operated by the largest bank in the State, with total deposits of $393
million. Between Applicant and North Bank there is some common ownership

FEDERAL DEPOSIT INSURANCE CORPORATION

and management which has existed since North Bank was organized, and
there is no significant amount of actual or potential competition which would
be eliminated by this proposal.
Ridge Bank operates two offices in Johnston (population 2,100) and one
office in Ridge Spring (population 600), 7 miles northeast of Johnston. The
shortest distance between offices of Applicant and Ridge Bank is the 9 miles
separating Ridge Spring from Applicant's office at Batesburg. Ridge Bank com
petes with independent banks at Edgefield and Trenton in addition to two
branches of larger banks. One of these branches is operated by the largest
bank in the State. In view of the sparsely populated trade area served by
Ridge Bank it does not seem likely that Applicant would branch de novo in
this area, and there is no significant amount of present or potential competi
tion which would be eliminated by this proposed merger.
South Bank operates four offices in Orangeburg and one in North, 14 miles
northwest. The population of the trade area served by South Bank is estimated
at 34,000. The shortest distance between offices of Applicant and South Bank
is the 16 miles between Applicant’s branch at Wagener and South Bank's
office at North; and they are not considered to be directly competitive. South
Bank competes with two larger banks headquartered in Orangeburg and with
two branches of other banks, one of which is operated by the largest bank in
South Carolina. In view of the present number of banking offices in the area
the possibility of Applicant branching de novo into South Bank's trade area is
believed remote.
The Board of Directors is of the opinion that the proposed transactions
would not substantially lessen competition, tend to create a monopoly, or in
any manner be in restraint of trade.
Financial and Managerial Resources and Future Prospects. Financial and
managerial resources of the participating banks are adequate, as they would
be for the resulting bank. Future prospects are better for the resulting bank
than they are for the participating banks operating as independent units.
Convenience and Needs of the Community to be Served. These proposed
transactions would have no appreciable effect in Applicant's present trade
area, but they would enable the resulting bank to better serve the convenience
and needs in the trade areas of the other three banks. Benefits to the com
munities served by North Bank, Ridge Bank, and South Bank would be a much
larger lending limit, full trust services, computer facilities, travel agency ser
vices, and a bank charge card plan.
Based on the foregoing information, the Board of Directors has concluded
that approval of the applications is warranted.

No. 17
The Owosso Savings Bank
Owosso, Michigan
to acquire certain assets and
assume the deposit liabilities of
The Morrice State Bank
Morrice

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B a n k in g O ffices
In
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42,890

1,594

To be
o p e ra te d

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Approved under emergency provisions. No report requested from the Attor
ney General.
B a s is f o r C o rp o ra tio n A p p ro v a l, M a y 5, 1 9 6 9
Pursuant to Sections 5 and 18(c) of the Federal Deposit Insurance Act,
applications have been filed by The Owosso Savings Bank, Owosso, Michigan,
to purchase certain assets and assume the deposit liabilities of The Morrice
State Bank, Morrice, Michigan, and to establish a branch at the present loca
tion of The Morrice State Bank, an insured member bank.
Estimated losses in the assets of The Morrice State Bank exceed its capital
funds. The Board of Directors has found that it must act immediately in
approving the applications to prevent the probable failure of The Morrice State
Bank.
Morrice, Michigan, has a population of about 600 and serves an agricultural
trade area of approximately 4,000. The nearest competing bank is The State
Bank of Perry, some 2 miles distant. The Morrice State Bank has served this
community for many years and has developed a sizable volume of business. It
is expected that a branch of The Owosso Savings Bank will successfully
replace the institution and continue to offer banking services to the community
and trade area.
On the basis of the above information and other information available to the
Corporation, the Board of Directors has concluded that approval of the applica
tions is warranted.

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No. 18

Jefferson Bank of Charlottesville

B a n k in g O ffices
In
o p e ra tio n

To be
o p e ra te d

202

Charlottesville, Virginia
(in organization; change title to
Citizens Bank and Trust Company
of Charlottesville)
to merge with

Citizens Bank and Trust Company

28,992

Charlottesville
S u m m a ry re p o r t by A tto r n e y G e n e ra l, F e b ru a ry 12, 1 9 6 9
[This proposal] is part of a transaction which will result in a presently existing
bank becoming a wholly owned subsidiary of a one-bank holding company.
Thus, [this] merger is merely part of a corporate reorganization and as such will
have no effect on competition.
B a s is f o r C o rp o ra tio n a p p ro v a l,

M a y 8, 1 9 6 9

Pursuant to Sections 5 and 18(c) and other provisions of the Federal
Deposit Insurance Act, applications have been filed for Federal deposit insur
ance for Jefferson Bank of Charlottesville, Charlottesville, Virginia (Jefferson), a
proposed new bank in organization, and for consent to its merger with Citizens
Bank and Trust Company, Charlottesville, Virginia (Citizens), with total
resources of $29 million, under Jefferson's charter and with the title “ Citizens
Bank and Trust Company of Charlottesville." The resulting bank will operate
from the main office and four existing branches of Citizens.

FEDERAL DEPOSIT INSURANCE CORPORATION

The proposal involves the formation of a one-bank holding company to hold
stock ownership of Citizens through the simultaneous new bank formation and
merger. Jefferson will not be in operation as a commercial bank prior to the
merger, following which it will operate the same banking business at the same
locations as Citizens and with the same management and personnel. The pro
posal, of itself, will not change the banking services which Citizens has pro
vided usefully to the Charlottesville community on a convenient and successful
basis for many years; nor will it, involving only a change in charter and form
of organization, have any effect on competition. All factors required to be con
sidered relative to each application are favorably resolved.
On the basis of the above information, the Board of Directors has concluded
that approval of the applications is warranted.

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No. 19

In
o p e ra tio n

4,391

112,053

Republic Bank and Trust Company
Herndon, Virginia
(change title to Arlington Trust
Company, Incorporated)
to merge with
Arlington Trust Company, Inc.
Arlington

B a n k in g O ffices
To be
o p e ra te d

S u m m a ry re p o r t b y A tto r n e y G e n e ra l, M a rc h 4 , 1 9 6 9
The Financial General Corporation, Washington, D. C., a registered bank
holding company, owns 80 percent of Arlington Trust and 58 percent of
Republic Bank.
The head offices of the merging banks are 20 miles apart, their closest
offices are about 10 miles apart, and there are numerous banking alternatives
in the intervening area. In addition, both banks are controlled by the same
bank holding company. These facts indicate that the proposed transaction will
not eliminate any effective competition.
B a s is f o r C o rp o ra tio n a p p ro v a l,

M a y 8, 1 9 6 9

Pursuant to Section 18(c) and other provisions of the Federal Deposit Insur
ance Act, an application has been filed with the Corporation for its prior con
sent to merge Arlington Trust Company, Inc, Arlington, Virginia (Trust Com
pany), an insured State nonmember bank with total deposits of $100,227,000,
with Republic Bank and Trust Company, Herndon, Virginia (Republic Bank), an
insured State nonmember bank with total deposits of $3,801,000. The result
ing bank would operate under the charter of Republic Bank and with the title
"Arlington Trust Company, Incorporated." The seven offices presently operated
by Trust Company would become branches of the resulting bank in addition to
two approved but unopened branches, increasing the number of offices of the
resulting bank to 11. Incidental to the proposed merger, the common capital
stock of the resulting bank would be less than the common capital stock of
the combined banks prior to the merger, with an offsetting credit to the sur
plus account, and there would be no decrease in total capital.
Competition. All offices of Trust Company are located in Arlington County,

BANK ABSORPTIONS APPROVED BY THE CORPORATION

and Republic Bank's two offices are in the communities of Herndon and
Vienna, in Fairfax County. The main offices of the participating banks are 20
miles apart, and the shortest distance between offices is 10 miles. Both of the
participating banks are located in the heavily populated Washington, D.C.-Maryland-Virginia SMSA. There are several other banking offices located in the area
between the offices of the participating banks, and there is no significant
amount of competition between Trust Company and Republic Bank. Legally,
Trust Company cannot branch de novo in Fairfax County, and Republic Bank
cannot branch de novo in Arlington County. Both of the participating banks are
owned by the same registered bank holding company, and this proposal would
not increase that holding company’s share of the market in northern Virginia.
There is no significant amount of actual or potential competition, between the
participating banks, which would be eliminated by this proposal; and its con
summation would have no discernible anticompetitive effects.
The Board of Directors is of the opinion that the proposed transaction would
not substantially lessen competition, tend to create a monopoly, or in any
manner be in restraint of trade.
Financial and Managerial Resources and Future Prospects. Financial and
managerial resources of the participating banks are adequate, as they would
be fo r the resulting bank. Since it was organized in 1963, Republic Bank has
not grown as fast as anticipated, and its future prospects would be better as a
part of the resulting bank. The future prospects of the resulting bank are
favorable.
Convenience and Needs of the Community to be Served. This proposed
transaction would have no appreciable effect in Trust Company's trade area,
but it would enable the resulting bank to better serve the convenience and
needs in the trade area served by Republic Bank. Immediate benefits to the
trade area served by Republic Bank would be an increased lending lim it, trust
services, and mortgage loan services. In the long run, the relocation of the
charter to Fairfax County will permit the resulting bank to establish de novo
branches to meet the expanding banking needs of this rapidly developing
county.
Based on the foregoing information, the Board of Directors has concluded
that approval of the application is warranted.

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No. 20
Peoples Bank & Trust Company
Rocky Mount, North Carolina
to merge with
Bank of Harrellsville
Harrellsville

B a n k in g O ffices
In
o p e ra tio n

95,790

1,616

To be
o p e ra te d

S u m m a ry re p o r t b y A tto r n e y G e n e ra l, F e b ru a ry 1 1 , 1 9 6 9
Harrellsville (population 171) is a small farming community located in North
Carolina's tidewater section with little growth potential.
Although the head offices of the merging banks are about 72 miles apart,
Peoples Bank operates branches at Edenton and at Hertford, each located

FEDERAL DEPOSIT INSURANCE CORPORATION

about twenty miles east of Harrellsville, with no banks in the intervening
areas. Therefore, it appears that the proposed merger might eliminate some
existing competition. However, both Wachovia Bank & Trust Company (total
deposits, $1 billion) and Planters National Bank (total deposits, $82 million)
operate branches about 12 miles southwest of Harrellsville.
B a s is f o r C o rp o ra tio n a p p ro v a l, M a y 15, 1 9 6 9
Peoples Bank & Trust Company, Rocky Mount, North Carolina (Applicant),
an insured nonmember bank with total deposits of $85,907,000, has applied,
pursuant to Section 18(c) and other provisions of the Federal Deposit Insur
ance Act, for the Corporation’s prior approval to merge with Bank of Harrells
ville, Harrellsville, North Carolina (Other Bank), which has total deposits of
$1,448,000. The banks would merge under the charter and with the title of
Applicant; and, as an incident to the merger, the only office of Other Bank
would become a branch of Applicant, increasing the number of its offices to
24.
Competition. Applicant is based in Rocky Mount (population 32,140) and
operates a banking system which includes branches in 13 other communities
in the northeastern part of North Carolina. The estimated population of Appli
cant’s trade area is 100,000. Other Bank is located at Harrellsville (population
171) and serves an area with an estimated population of 2,500. A distance of
72 miles separates the participating banks, and there is no effective competi
tion between the two. The nearest intervening branch of Applicant is 42 miles
from Other Bank; and Applicant also operates four branches in the same gen
eral area of Other Bank, but the nearest is 32 miles away. These are not con
sidered competitive.
Applicant is the eighth largest bank in its relevant trade area in terms of
total deposits, and this proposal would not change that position. Other Bank is
the smallest in its trade territory, is not an aggressive institution, and has not
shown an inclination to broaden its operations by de novo branching.
Consummation of this proposal would have no effect on the competitive
position of Applicant against the other banks which operate in its present ser
vice areas and would not eliminate any appreciable competition between the
participating banks. The slight concentration resulting from the merger would
not significantly affect competition in the respective trade areas of the partici
pating banks. The merger would kindle the competitive spirit of banking in
Other Bank’s immediate area, but the emergence of possible monopolistic
tendencies is improbable because of the presence nearby of other banks.
The Board of Directors is of the opinion that the merger would not substan
tially lessen competition, tend to create a monopoly, or in any other manner
be in restraint of trade.
Financial and Managerial
regarded as favorable with
resulting bank. The merger
ment for the banking facility

Resources and Future Prospects. These factors are
respect to Applicant and are so projected for the
would provide assurance of continuity of manage
at Harrellsville.

Convenience and Needs of the Community to be Served. The proposal would
not materially benefit the trade area served by Applicant, but it would enable
the resulting bank, with a much larger lending lim it, to fill the need for credit
in amounts larger than now available from Other Bank. Also, more complete
banking services, including those provided by a trust department, would be
offered in the Harrellsville area.

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Based on the foregoing, the Board of Directors has concluded that approval
of the bank's application is warranted.
Resources

Banking Offices

{in
In
operation

To be
operated

650,435

124

125

1,395

thousands
of dollars)

No. 21

First-Citizens Bank & Trust Company
Smithfield, North Carolina
to merge with

The Bank of Gibsonville
Gibsonville

S u m m a ry re p o r t b y A tto r n e y G e n e ra l, M a rc h 3 , 1 9 6 9
First-Citizens, the fourth largest bank in North Carolina, proposes to merge
with The Bank of Gibsonville, which operates the only bank office in Gibsonville, North Carolina.
The closest offices of First-Citizens are thirteen miles from Gibsonville, but
there are no other banking offices in the intervening area. Therefore, it would
appear that some competition between the two banks will be eliminated by the
merger. In addition, this merger may reduce the possibility of entry (perhaps
through acquisition of The Bank of Gibsonville itself) by a bank not presently
competing in the general area.
Nine banks operate some 50 offices in Guilford County (an area which prob
ably overstates the relevant market here). First-Citizens' share of the IPC
deposits in Guilford County, now 5 percent, will increase only slightly as a
result of this merger. Competition is also furnished from banks located in
nearby Burlington in Alamance County, where First-Citizens has no office.
It should be noted, however, that the proposed merger is part of a continu
ing trend of acquisitions and mergers by North Carolina's largest commercial
banks, which has the effect of retarding the development of a more competi
tive banking structure in North Carolina (a State in which the five largest
banks already control about two-thirds of total deposits).
B a s is f o r C o rp o ra tio n a p p ro v a l, M a y 15 , 1 9 6 9
First-Citizens Bank & Trust Company, Smithfield, North Carolina (Applicant),
an insured nonmember bank with total deposits of $580,169,000, has applied,
pursuant to Section 18(c) and other provisions of the Federal Deposit Insur
ance Act, for the Corporation's prior approval to merge with The Bank of Gib
sonville, Gibsonville, North Carolina (Other Bank), which has total deposits of
$1,236,000. The banks would merge under the charter and with the title of
Applicant; and, as an incident to the merger, the lone office of Other Bank
would become a branch of Applicant, giving it a total of 125 offices.
Competition. Applicant is fourth among the largest banks in North Carolina,
and this proposal would not change that position. Because of its widely scat
tered system, the service area of Applicant is virtually the entire State. Its
main office is at Smithfield and 123 branches are located in 55 communities,
including Smithfield. Many of its offices, including those at Greensboro which
are nearest to Other bank, are in competition with offices of the other large
banks in the State, and the proposed merger would have no significant effect
on competition in the areas presently served by Applicant.

FEDERAL DEPOSIT INSURANCE CORPORATION

The service area of Other Bank is relatively small and is confined to Gibsonville (population 1,800) and surrounding territory within a 10-mile radius.
Other Bank is the smallest bank in its relevant trade area, and its growth has
been modest in recent years. It is in the shadow of offices at Burlington, 7
miles away, of four of the State's five largest banks; and it has not been an
influential competitor. The entrance of Applicant, with its much larger
resources and proposed broader banking services, would tend to increase com
petition in the area now served by Other Bank.
The participating banks presently are not considered as being in competition
with each other, and there seems to be little likelihood th a t they would
become competitive in the future. Other Bank has not shown an inclination to
expand beyond its present operation; and, because of its size, Gibsonville
would not appear to be a desirable location for a de novo branch. The elimina
tion of actual or potential competition is not considered a logical result of the
proposed merger.
The Board of Directors is of the opinion that the merger would not substan
tially lessen competition, tend to creat a monopoly, or in any other manner
be in restraint of trade.
Financial and Managerial Resources and Future Prospects. Both financial
and managerial resources are considered adequate with respect to the merging
banks and are so projected for the resulting bank. Net earnings record of nei
ther of the banks has been outstanding in recent years; but an ability to earn
has been demonstrated by Applicant, and this proposal would not have any
detrimental effects on this. Future prospects of the resulting bank are favora
ble.
Convenience and Needs of the Community to be Served. Other Bank is a
rather small institution and offers limited services. A lending lim it low in com
parison to those of competitive banks, coupled with a conservative credit
policy, has rendered it an ineffective force as regards competition in the rele
vant trade area. As a result of this proposal, the Gibsonville area would benefit
from a bank with much larger lending facilities and more aggressive credit
views. A wider range of services, including those offered by a trust department,
are other advantages that would be gained by the comm unity through the pro
posed merger.
Based on the foregoing information, the Board of Directors has concluded
that approval of the application is warranted.

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No. 22
Industrial Valley Bank and Trust Company
Jenkintown, Pennsylvania
to merge with
Doylestown Trust Company
Doylestown

B a n k in g O ffices
In
o p e ra tio n

To be
o p e ra te d

447,330

29,290

S u m m a ry re p o r t by A tto r n e y G e n e ra l, A p ril 15, 1 9 6 9
IVB operates one branch office in Bucks County. This office is located in
Warminster (adjacent to central Bucks County), approximately nine miles south

BANK ABSORPTIONS APPROVED BY THE CORPORATION

of Doylestown. There is, apparently, some direct competition between IVB and
Doylestown Trust which will be eliminated by the merger; fo r example, five
common depositors maintain balances of $34,700 at IVB and $48,000 at
Doylestown Trust.
Under Pennsylvania law, IVB could be permitted to open de novo branches
in central Bucks County.
Six commercial banks presently operate offices in central Bucks County. As
of June 30, 1966, Doylestown Trust held approximately 26 percent of the total
IPC demand deposits held by all commercial banking offices located in central
Bucks County; and on that date Doylestown Trust and The Doylestown
National Bank and Trust Company held 60 percent of such deposits.
The large Philadelphia banks are entering this market. The Philadelphia
National Bank entered central Bucks County de novo in 1968, and has secured
approval to open a second office in the area. The First Pennsylvania Bank and
Trust Company will open a de novo branch this April. In addition, Girard Trust
Bank and Fidelity Bank sought unsuccessfully to enter central Bucks County by
merger in 1968.
IVB has the capability and incentive to branch de novo into the growing cen
tral Bucks County market, which is located only 15 miles north of its head
quarters in Montgomery County. However, there are five larger banks which
would also appear to be potential entrants into central Bucks County; Girard
Trust Bank, Fidelity Bank, Provident National Bank, Continental Bank and
Trust, and Central Penn National Bank.
B a s is f o r C o rp o ra tio n a p p ro v a l, M a y 2 1 , 1 9 6 9
Industrial Valley Bank and Trust Company, Jenkintown, Pennsylvania (Appli
cant), an insured nonmember bank with total deposits of $373,166,000, has
applied, pursuant to Section 18(c) and other provisions of the Federal Deposit
Insurance Act, for the Corporation's prior approval to merge with Doylestown
Trust Company, Doylestown, Pennsylvania (Merging Bank), which has total
deposits of $26,453,000. The banks would merge under the charter and with
the title of Applicant; and, as an incident to the merger, the sole office of
Merging Bank would become a branch of Applicant, increasing the number of
its offices to 41.
Competition. The service area of Applicant, of which the population is esti
mated at 2,750,000, is essentially southeastern Pennsylvania, including the
counties of Chester, Delaware, Montgomery, Philadelphia, Lehigh, and a small
portion of Bucks County. Its branch offices in Allentown are close to the North
ampton County line and gain a small percentage of business from that
county. Philadelphia and surrounding counties are heavily industrialized with
diversified activity, extensive commercial services, port facilities, and an
expanding residential population. The economy of the entire service area of
Applicant is, to a great extent, geared to the economy of the greater Metropoli
tan Philadelphia area, with agriculture playing but minor roles.
The service area of Merging Bank is confined primarily to the com m unity of
Doylestown, Pennsylvania, and to that small portion of Bucks County surround
ing the immediate community. Population of the service area is estimated to
be 21,000. Doylestown is the county seat and is located approximately in the
center of Bucks County. The area has been essentially rural and residential,
with but few, mostly small, industries until recent years. It is now reported
that the rapidly expanding industrial complex of Metropolitan Philadelphia has

FEDERAL DEPOSIT INSURANCE CORPORATION

begun to change the appearance of Merging Bank's service area, and popula
tion growth for Bucks County has been projected at 65 percent by 1975.
The main offices of the participating banks are 15 miles apart, and the short
est distance between offices is the 10 miles separating Applicant's office at
Warminster, just inside the Bucks County line, and Merging Bank's sole office
at Doylestown. The two banks operate in separate market areas with little
overlap and very little existing competition between them. Moreover, there
seems to be little potential for competition. The size of Merging Bank pre
cludes an aggressive approach to Applicant's market area, while the numerous
existing or approved offices of competing banks in or near the market area of
Merging Bank appear to preclude the possibility of de novo branch approval
for Applicant. For these and other reasons, elimination of potential competition
is not considered a reason for objection to this proposal.
Applicant ranks 13th in size among 68 banks in its primary service area
(ninth among commercial banks), as measured in terms of IPC deposits. Sev
eral of its Philadelphia competitors hold IPC deposits in excess of $1 billion
each. With respect to this market area, the merger would have no significant
effect on competition. Any competitive effects would occur in the servicing
area of Merging Bank, where it ranks fifth of five commercial banks doing
business in the central Bucks County area. The resulting bank would rank third
in size in terms of IPC deposits of the five commercial banks in the central
Bucks County area; however, this proposal would not diminish competition in
the area or reduce the number of banking alternatives. Rather, it will substi
tute an active and aggressive bank for a smaller bank now unable to cope with
the increasingly strong competitive situation. The primary trade area of the
resulting bank would be the six counties where its offices will be located, plus
small portions of some adjacent counties. Within this trade area the resulting
bank would have only 3.3 percent of the IPC deposits and 12 other banks
would have a much greater share of the market. The merger should tend to
increase competition in the area now served by Merging Bank.
The Board of Directors is of the opinion that the merger would not substan
tially lessen competition, tend to create a monopoly, or in any other manner
be in restraint of trade.
Financial and Managerial Resources and Future Prospects. Financial and
managerial resources are satisfactory with respect to both participating banks
and are so projected for the resulting bank. With respect to managerial
resources, the merger will solve an administrative problem for Merging Bank
and will substitute aggressive management for one which has been incapable
of providing experienced personnel needed to cope with a highly intensified
competitive banking market. Earnings records have been good for both banks,
and future prospects of the resulting bank are favorable.
Convenience and Needs of the Community to be Served. As a result of the
merger, the Doylestown area would gain the advantage of a bank with a larger
lending lim it than now provided by Merging Bank. Additional conveniences
such as computerized banking services, more comprehensive lending programs,
better-trained officer personnel, and expanded full-service commercial banking
facilities would be provided for present and potential customers of Merging
Bank, as well as for the general public. A more aggressive management would
further stimulate competition in the area.
Based on the foregoing information, the Board of Directors has concluded
that approval of the application is warranted.

BANK ABSORPTIONS APPROVED BY THE CORPORATION
Resources
(\n
un
thousands
of dollars)

No. 23
American Bank & Trust Company
Monroe, North Carolina
to merge with
Anson Bank and Trust Company
Wadesboro

Banking Offices
In
operation

40,210

12,563

To be
operated

S u m m a ry re p o r t by A tto r n e y G e n e ra l, A p r il 2 8 , 1 9 6 9
The closest offices of the merging banks are approximately 15 miles apart,
and there are two banks in the intervening area. Their respective head offices
are 25 miles apart, and are located in separate counties of a predominantly
rural section of the state. It is unlikely that any significant amount of direct
competition would be eliminated by this merger.
Since North Carolina law permits state-wide de novo branching, the merger
would eliminate the potential competition that would be effected by either
bank branching de novo into the service area of the other. American Bank has
demonstrated an aggressive growth pattern by opening several de novo offices
in recent years.
Should this merger be consummated, American Bank will be eliminated as a
likely potential entrant into the highly concentrated banking market of Anson
County. However, as none of the largest North Carolina banks have yet
entered Anson County, and as they will remain potential entrants in view of
their presence in nearby Charlotte, it would appear that this merger will not
have a significantly adverse effect on potential competition.
B a s is f o r C o rp o ra tio n a p p ro v a l, M a y 2 9 , 1 9 6 9
American Bank & Trust Company, Monroe, North Carolina (Applicant), an
insured State nonmember bank with total deposits of $35,460,000, has
applied, pursuant to Section 18(c) and other provisions of the Federal Deposit
Insurance Act, for the Corporation's prior consent to merge with Anson Bank
and Trust Company, Wadesboro, North Carolina (Anson Bank), which has total
deposits of $10,946,000, under the charter and with the title of Applicant and,
incident thereto, to establish the three offices of Anson Bank as branches.
Competition. Applicant, operating 10 offices, with two others approved but
unopened, offers a complete range of banking services to the area between
Monroe, in Union County, and southeastern Mecklenburg County, including the
eastern section of the city of Charlotte, all within the Charlotte SMSA. This is
a rapidly growing area; transportation, service, government, and trade provide
the bulk of employment in and around Charlotte, which is a major distribution
center for the entire Southeast. Union County's economy is well diversified
with agriculture continuing to be an important segment of the economy. Wades
boro is about 25 miles east of Monroe, and the closest offices of the merg
ing banks are 16 miles apart. Anson Bank is one of two banks in Wadesboro,
the county seat for Anson County; there is some industry in the area, but agri
culture still is of major economic importance.
There is a limited overlapping of the service areas of Applicant and Anson
Bank, and the merger would not result in a substantial lessening of competi
tion, actual or potential. Officials of banks competing with Anson Bank offered

FEDERAL DEPOSIT INSURANCE CORPORATION

no objection to the proposal. Applicant, one of the smaller branch systems in
North Carolina, competes with offices of the five largest banks, among others,
in its service area. Major competition for Anson Bank emanates from one
other bank in Wadesboro, also operating two branches in Anson County, and
one branch of a larger branch system headquartered in Salisbury, North Caro
lina. The substitution of branches of Applicant for Anson Bank’s offices should
tend to increase competition with these banks.
The Board of Directors is of the opinion that the merger would not substan
tially lessen competition, tend to create a monopoly, or in any other manner
be in restraint of trade.
Financial and Managerial Resources and Future Prospects. These factors are
satisfactory with respect to both participating banks and are so projected for
the resulting bank.
Convenience and Needs of the Community to be Served. Anson Bank,
because of its comparatively limited resources, offers limited services. As a
result of the merger, the Wadesboro area would gain the advantage of a larger
bank which provides all types of banking facilities on a larger and broader scale
with a larger lending lim it and, thus, could better serve the convenience and
needs of the community.
Based on the foregoing information, the Board of Directors has concluded
that approval of the application is warranted.

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No. 24
Security Bank and Trust Company
Salisbury, North Carolina
to merge with
Mutual Bank & Trust Company
Marshville

B a n k in g O ffices
In
o p e ra tio n

45,917

6,673

To be
o p e ra te d

S u m m a ry re p o r t b y A tto r n e y G e n e ra l, A p ril 2 5 , 1 9 6 9
The primary effects of this merger will be felt in the vicinity of Marshville,
North Carolina, a rural area with increasing industrial growth.
Branches of Security Bank lie both east and west of Mutual Bank. While
there are intervening banks, the service areas of the merging banks would
appear to overlap in the Marshville area. This merger will eliminate substantial
direct competition between the two banks.
Approval of this merger, along with that of American Bank and Trust Com
pany, Monroe, and Anson Bank and Trust Company, Wadesboro, would reduce
the number of competitors in the general vicinity of Marshville from 5 to 3.
We conclude that this merger would have an adverse effect on competition.
B a s is f o r C o rp o ra tio n a p p ro v a l, M a y 2 9 , 1 9 6 9
Security Bank and Trust Company, Salisbury, North Carolina (Applicant), an
insured State nonmember bank with total deposits of $40 million, has applied,
pursuant to Section 18(c) and other provisions of the Federal Deposit Insur
ance Act, for the Corporation's prior consent to merge with Mutual Bank &
Trust Company, Marshville, North Carolina (Mutual), an insured State non
member bank with total deposits of $6 million. The merger would be effected

BANK ABSORPTIONS APPROVED BY THE CORPORATION

under Applicant's charter and with its title; and, as an incident thereto,
Mutual's three offices would be operated as branches, increasing the number
of Applicant's offices to 17, including its approved but unopened branch.
Competition. Applicant directly serves nine communities in seven counties in
the south-central sector of the State where its 13 offices are located. Its head
quarters city of Salisbury has a population of 21,300, and its entire service
area population is estimated at 107,000. Mutual's three offices serve a small
area around Marshville (population 1,400) and about 60 miles south of Salis
bury. Applicant’s competitors include the State's largest and third largest
banks, which have deposits in excess of $1.3 billion and $827 million. The
small increase in Applicant's deposit size will have no material competitive
effect in its service area.
Mutual is located near the eastern border of Union County. Applicant has
two offices in central Union County at Monroe and a branch in adjacent Anson
County at Polkton. These are Applicant's closest offices to Mutual and are 10
miles east and west from Marshville. In each direction a competing bank office
intervenes the merging banks' offices. Applicant’s Monroe offices have a mod
erate amount of deposit business from the Marshville area, and the merging
banks appear to be competitive with each other to a limited degree.
Among the six banks in the general area where both merging banks have
offices, Applicant's branches hold about 10 percent of the aggregate deposits.
The resulting bank's offices in the area would have about 20 percent. There
should be no significant adverse effects on competition in this area.
The Board of Directors is of the opinion that the proposed merger would not
significantly lessen competition, tend to create a monopoly, or in any other
manner be in restraint of trade.
Financial and Managerial Resources, Future Prospects, and Convenience and
Needs of the Community to be Served. These factors are satisfactory with
respect to Applicant and are so projected for the resulting bank. A significantly
larger lending lim it will permit the accommodation of larger credit lines needed
by Mutual's present customers. The larger financial resources of the resulting
bank will make possible broader and more specialized services and should be
of value in attracting new business and contributing to the expansion of the
Marshville area's economy.
For the reasons stated above, the Board of Directors has concluded that
approval of the bank's application is warranted.

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No. 25
Citizens Bank of South Carolina
Dillon, South Carolina
to merge with
The Bank of Nichols
Nichols

In
o p e ra tio n

21,144

2,508

To be
o p e ra te d

S u m m a ry re p o r t b y A tto r n e y G e n e ra l, M a rc h 10 , 1 9 6 9
The community primarily affected by this merger will be the general vicinity
of the town of Nichols (population 617) in Marion County (population 32,014).
Marion County is served by five banks having ten offices.

FEDERAL DEPOSIT INSURANCE CORPORATION

The closest office of Citizens Bank is approximately 26 miles from Nichols
Bank. Because of this distance, the presence of an intervening bank in Lake
View, and the small size of Nichols Bank, it would appear that the proposed
merger would not eliminate any significant direct competition between these
banks.
South Carolina law permits statewide branching; but, because of the nature
of the community and the fact that it appears adequately serviced by the
existing banks, opportunity for de novo entry seems poor. Therefore, it is
unlikely that the proposed merger would eliminate any significant potential
competition.
B a s is f o r C o rp o ra tio n a p p ro v a l, M a y 2 9 , 1 9 6 9
Citizens Bank of South Carolina, Dillon, South Carolina (Applicant), an
insured nonmember bank with total deposits of $19,205,000, has applied, pur
suant to Section 18(c) and other provisions of the Federal Deposit Insurance
Act, for the Corporation’s prior approval to merge with The Bank of Nichols,
Nichols, South Carolina (Other Bank), which has total deposits of $2,286,000.
The banks would merge under the charter and with the title of Applicant; and,
as an incident to the merger, the only office of Other Bank would become a
branch of Applicant, increasing the number of its offices to five. Approval is
also requested for the retirement, at the option of the holders thereof, of the
5 percent preferred stock to be issued in connection with the merger.
Competition. Applicant is headquartered in Dillon and operates one branch
at Clio and two in Lancaster. It is the fifth largest bank in terms of total
deposit volume among the banks with offices in its overall trade area. The
merger would move Applicant to fourth position in its entire service area, and
it would become the largest bank with offices in the Lancaster area. The
resulting bank would control the largest volume of banking business in its
trade areas, but it would be in competition with the resources of much larger
banks in the Dillon and Nichols areas. The only competitive advantage to be
derived from the proposal would be a larger lending lim it. The participating
banks are 22 miles apart, and they operate in service areas that are entirely
separate. They are not considered as likely entrants into the other's area
through de novo branches. Thus, there is no significant existing or potential
competition which would be eliminated by the merger. It is expected that com
petition would increase to some degree in the Nichols service area. The public
would still have numerous banking alternatives available, both large and small.
The Board of Directors is of the opinion that the merger would not substan
tially lessen competition, tend to create a monopoly, or in any other manner
be in restraint of trade.
Financial and Managerial Resources and Future Prospects. These factors are
satisfactory with respect to the participating banks and are so projected for
the resulting bank.
Convenience and Needs of the Community to be Served. The merger would
not benefit to any appreciable extent the trade areas presently served by Appli
cant; but it would enable the resulting bank, because of a much larger lending
lim it, to meet the need for credit in amounts considerably in excess of the
maximum now available from Other Bank. Additionally, the resulting bank
would provide a much broader range of banking services in the Nichols market
area.
Based on the foregoing, the Board of Directors has concluded that approval
of the bank's application is warranted.

BANK ABSORPTIONS APPROVED BY THE CORPORATION
Resources
(in
\m
thousands
of dollars)

No. 26
Piedmont Bank
Greenville, South Carolina
(in organization; change title to
First Piedmont Bank and Trust Company)
to merge with
First Piedmont Bank and Trust Co.
Greenville

Banking Offices
In
operation

To be
operated

200

7,924

S u m m a ry r e p o r t b y A tto r n e y G e n e ra l, A p ril 16, 1 9 6 9
The proposed merger is part of a transaction which will result in First Pied
mont Bank and Trust Company becoming a wholly owned subsidiary of a onebank holding company and as such will have no effect on competition.
B a s is f o r C o rp o ra tio n a p p ro v a l, M a y 2 9 , 1 9 6 9
Pursuant to Sections 5, 18(c), and 18(i) and other provisions of the Federal
Deposit Insurance Act, applications have been filed for Federal deposit insur
ance for Piedmont Bank, Greenville, South Carolina (Applicant), a proposed
new bank, for consent to its merger with First Piedmont Bank and Trust Co.,
with total resources of $7.9 million, under Applicant's charter and with the
title "F irst Piedmont Bank and Trust Company," and to retire the $200,000
common capital of Applicant. The resulting bank will operate from the main
office and existing branch of First Piedmont.
The proposal involves the formation of a one-bank holding company which
will acquire ownership of First Piedmont through the new bank formation and
merger. Applicant will not be in operation as a commercial bank prior to the
merger; and following consummation of the transaction, it will operate the
same banking business at the same locations as First Piedmont and with the
same management and personnel. There will be no change in the banking
services which First Piedmont is providing to the city of Greenville. Involving
only a change in charter and form of organization, the merger will have no
effect on competition. All factors required to be considered relative to each
application are favorably resolved.
On the basis of the above information, the Board of Directors has concluded
that approval of the applications is warranted.

No. 27
The Boone County State Bank
Lebanon, Indiana
to acquire the assets and assume the
deposit liabilities of
Citizens State Bank
Jamestown

Resources
/jn
un
thousands
of dollars)

Banking Offices
In
operation

18,204

2,217

To be
operated

FEDERAL DEPOSIT INSURANCE CORPORATION
S u m m a ry re p o r t by A tto r n e y G e n e ra l, M a rc h 11, 1 9 6 9

The nearest offices of the applicant banks are about five miles apart with no
banks in the intervening area. The application estimates that the total amount
of common deposits and loans to be approximately $50,000, and that deposit
and loan accounts derived from the other bank’s community amount ‘to a min
imum of $50,000.’ Thus it seems likely that the proposed acquisition will elim
inate some direct competition between the two banks.
The proposed acquisition will increase concentration in Boone County.
Boone Bank now holds 52.6 percent of Boone County's IPC demand deposits;
and the acquisition would give it 59.2 percent of such deposits. However, it
would seem that these market shares may overstate the situation somewhat
since they do not reflect the extent to which Citizens Bank derives deposits
from neighboring counties because of its location on the county line.
B a s is f o r C o rp o ra tio n a p p ro v a l M a y 2 9 , 1 9 6 9
The Boone County State Bank, Lebanon, Indiana (Applicant), an insured
State nonmember bank with total deposits of $16 million, has applied, pur
suant to Section 18(c) and other provisions of the Federal Deposit Insurance
Act, for the Corporation's prior consent to acquire the assets of and assume
liability to pay deposits made in Citizens State Bank, Jamestown, Indiana
(Jamestown Bank), an insured State member bank with total deposits of $2
million. The transaction would be effected under Applicant's charter and with
its title; and, as an incident thereto, the main office of Jamestown Bank will
become a branch of the resulting bank.
Competition. Applicant operates its main office and a drive-in facility in
Lebanon, as well as a branch in Advance, 11 miles from Lebanon. Applicant
also has received permission to establish another branch in Lebanon. James
town Bank operates from a single office which is located 16 miles from Appli
cant's main office and 5 miles from its Advance Branch. Lebanon has a popu
lation of 9,523, while that of Jamestown is 827. There is only limited
competition between Applicant's Advance Branch and Jamestown Bank. Man
agement of Jamestown Bank has been quite conservative in the past, and it
has not been an aggressive competitor. Moreover, it is experiencing a serious
management succession problem due to the incapacitation of its executive
officer.
Applicant is the largest bank in Boone County, but the second largest bank
competing in Jamestown Bank’s trade area, while Jamestown Bank is the
second smallest bank. The proposal would introduce a more aggressive institu
tion with much larger lending limits, a farm representative, and a fully staffed
trust department into Jamestown, which is primarily an agricultural commu
nity. The transaction should have no adverse competitive effects in the area.
The Board of Directors is of the opinion that the effect of the proposed pur
chase and assumption transaction would not be substantially to lessen compe
tition, tend to create a monopoly, or in any other manner be in restraint of
trade.
Financial and Managerial Resources, Future Prospects, and Convenience and
Needs of the Community to be Served. These factors are favorable with
respect to Applicant and are so projected for the resulting bank. The proposal
will eliminate a small commercial bank with serious management succession
problems. The convenience and needs of the Jamestown area will be better
served by the replacement of a small independent bank with a branch of a
larger, more progressive institution.

BANK ABSORPTIONS APPROVED BY THE CORPORATION

On the basis of the information presented, the Board of Directors has con
cluded that approval of the bank's application is warranted.

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No. 28
The Fairfield County Trust Company
Stamford, Connecticut
(change title to Union
Trust Company)
to merge with
The Union and New Haven Trust Company
New Haven

B a n k in g O ffices
In
o p e ra tio n

329,664

130,603

To be
o p e ra te d

S u m m a ry re p o r t b y A tto r n e y G e n e ra l, D e c e m b e r 2, 1 9 6 8
The head offices of the merging banks are about forty miles apart; their
nearest branch offices are no closer than fifteen miles, and there appear to be
a number of banks operating in the intervening areas. Furthermore, it seems
that neither bank obtains more than 1 percent of its deposits or loans from
areas directly served by the other. Thus, it does not seem that significant
existing competition would be eliminated by this merger.
Connecticut banking law permits statewide de novo branching into any incor
porated city or town in which there is not located the head office of another
bank. Of Connecticut's 169 towns, 128 with about half the state's population,
or over 1,400,000 inhabitants, are open to de novo branching by either County
Trust or Union Trust, and about 115, with a total of over 1 million inhabitants,
appear to be open to de novo branching by both banks.
Both banks are leading competitors in the markets in which they operate,
and these markets tend to be highly concentrated. In terms of total deposits,
County Trust is the largest bank headquartered in Stamford and is the second
largest headquartered in Fairfield County. Ten banks operate in County Trust's
self-designated service area, located in the western portion of Fairfield County,
and having a total population of over 400,000. As of June 30, 1966, County
Trust held approximately 32 percent of IPC demand deposits in this area, and
the four largest banks held more than 90 percent of those deposits.
In terms of total deposits, Union Trust is the third largest bank headquar
tered in New Haven and the fourth largest headquartered in New Haven
County. Ten of Union Trust’s eleven offices are located in New Haven County
with the eleventh situated in Old Saybrook in Middlesex County. Seventeen
commercial banks operate offices in Union Trust's self-designated primary ser
vice area, located in the southeastern half of New Haven County, and having a
total population of over 300,000. As of June 30, 1966, Union Trust held
approximately 21 percent of total IPC demand deposits in this area, and the
four largest banks held more than 90 percent of those deposits.
At least eight towns in which County Trust operates offices, with populations
ranging from 5,800 to 48,000, and at least five towns in which Union Trust
operates offices, with populations ranging from 9,000 to 20,000 appear to be
open to de novo branching. Even in towns where de novo branching is prohib
ited, entry may generally be effected through merger with a small bank or
through establishing an office just outside the protected area. It would appear

FEDERAL DEPOSIT INSURANCE CORPORATION

that many of these communities are attractive banking markets, and that each
of the applicants is among the most likely entrants into the markets served by
the other, as well as markets in which neither bank now operates. Consumma
tion of the proposed merger will eliminate this potential competition. The
effect of this merger will be significantly adverse.
B a s is f o r C o rp o ra tio n

a p p ro v a l, J u n e

12,

1969

The Fairfield County Trust Company, Stamford, Connecticut (Applicant), an
insured State nonmember bank with total deposits of about $298,414,000, has
applied, pursuant to Section 18(c) and other provisions of the Federal Deposit
Insurance Act, for the Corporation’s prior approval to merge with The Union
and New Haven Trust Company, New Haven, Connecticut (Union Bank), which
has total deposits of about $113,493,000. The banks would merge under the
charter of Applicant and with the title “ Union Trust Company." As an incident
to the merger, Applicant's main office would be moved from 300 Main Street,
Stamford, Connecticut, to Union Bank’s main office location at 205 Church
Street, New Haven, Connecticut; and Applicant’s present main office and Union
Bank's 10 branches would become branches of Applicant, increasing the
number of its offices to 42.
Competition. Applicant operates its main office and six branches in Stam
ford, Connecticut (estimated 1967 population 108,400), and 24 other branches
throughout western Fairfield County. Union Bank operates its main office and
one branch in New Haven, Connecticut (estimated 1967 population 141,700),
eight branches in southern New Haven County outside the city of New Haven,
and one branch in Old Saybrook in Middlesex County. There appears to be
very little competition between the participating banks. Their closest offices are
about 13 miles apart; and the service areas, as they relate to banking office
location, are separate and distinct with no overlapping. Furthermore, these
offices are intervened by other banking office locations. Thus, competition
between the participating banks for retail banking business is minimal. Compe
tition between the participating banks for regional and national business, when
placed in its proper context, is not substantial, and is overshadowed by com
petition in that market from the larger money market banks in New York and
Boston.
The potential for significantly greater competition between the participating
banks does not appear as a realistic probability. Under Connecticut's home
office protection law, it is not possible for Applicant or Union Bank to enter by
de novo branching into the towns which comprise the principal banking mar
kets in Connecticut; and analysis indicates that the towns which are open to
de novo branching provide few opportunities for profitable branch operation.
The concentration of banking resources in the service areas of the partici
pating banks would not be substantially altered. The resulting bank would have
about 28 percent of the IPC deposits held in offices of the commercial banks
located in the two service areas; and if consideration is given to deposits held
by offices of mutual savings banks in the two areas, this figure drops to about
15 percent. Moreover, the effects of this merger cannot realistically be
appraised on the basis of the restricted "prim ary service areas” alone. The
geography of Connecticut, and particularly the proximity of the southwestern
portion of the State to New York City, dictates that banks in this portion of
the State must in fact compete vigorously with the giant commercial and
mutual savings banks in New York both for retail and wholesale banking busi
ness. Considering the overall competition the participating banks face, the
competitive effects of this merger are not significant.

BANK ABSORPTIONS APPROVED BY THE CORPORATION

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No. 29
Industrial Trust & Savings Bank
Muncie, Indiana
to merge with
Albany State Bank and Trust Company
Albany

B a n k in g O ffices
In
o p e ra tio n

38,948

3,623

To be
o p e ra te d

S u m m a ry re p o r t b y A tto r n e y G e n e ra l, A p ril 16 , 1 9 6 9
The closest offices of the merging banks are twelve miles apart with at least
one branch of a competing Muncie bank intervening, but that branch is in
Muncie. The applicant states that 0.2 percent of Industrial Trust's depositors
also have accounts at the Albany Bank. In addition, loan accounts in common
represent 0.3 percent of Industrial Trust's total loans and 4.3 percent of those
at Albany. Thus, it appears that Industrial Trust is not a significant competitive
alternative bank for residents of Albany although some existing competition
would be eliminated as a result of the merger, particularly in the area between
Muncie and Albany.
Since Indiana law does not permit either bank to branch de novo into the
other’s community, this merger eliminates only the potential that Albany Bank
might branch into other communities in the county not already served by a
bank.
There are presently four banks operating 18 offices in Delaware County, of
which Industrial Trust, with 22 percent of the county's commercial bank
deposits ranks third. Albany Bank, the smallest bank in the county has 2 per
cent of such deposits. If this merger is consummated Industrial Trust will
become the second largest bank in the county with 24 percent of total depos
its and the number of banks in the county will decrease from four to three.
B a s is f o r C o rp o ra tio n

a p p ro v a l, J u ly

1, 1 9 6 9

Industrial Trust & Savings Bank, Muncie, Indiana (Applicant), an insured
State nonmember bank with deposits of $36,219,000, has applied, pursuant to
Section 18(c) and other provisions of the Federal Deposit Insurance Act, for
the Corporation's prior approval to merge with Albany State Bank and Trust

FEDERAL DEPOSIT INSURANCE CORPORATION

Company, Albany, Indiana (State), which has deposits of $3,263,000. The
banks would merge under the charter and with the title of Applicant; and, as
an incident to the merger, the sole office of State would become a branch of
Applicant, increasing the number of its offices to five.
Competition. The service area of Applicant, population estimated to be
86,200, is confined primarily to the city of Muncie and the immediate sur
rounding area, plus a small satellite service area around the community of
Yorktown, where its only branch outside the city of Muncie is located. The area
is rich in agricultural activities, and the city of Muncie contains diversified
industrial complexes to complement its economic life.
The service area of State is confined to the community of Albany and its
immediate surrounding area. The population of the service area is estimated to
be 10,000, while there are approximately 2,100 residents of the community
itself. Located within a diversified farming area, there has been little industrial
development, and employment from the latter activity amounts to only about
500 persons. Other residents are reported to commute to Muncie or Dunkirk,
Indiana, for employment.
The main offices of the participating banks are 13 miles apart, with a
branch office of a competing bank, located in the city of Muncie, intervening.
The two banks operate in separate market areas, with very little competition
between them. Little potential exists for competition in the future because of a
State law which prohibits de novo branch offices being established in comm uni
ties wherein an existing bank is already located. Elimination of competition
does not appear to be a significant factor to this proposal.
Applicant is the third largest bank in its trade area as measured in terms of
IPC deposits and the second largest based on total loans. As a result of this
proposal, it would acquire approximately 1.8 percent of area deposits, moving
it into second position in this respect. However, both of Applicant's closest
competitors are also headquartered in Muncie, and it would appear that com
petition within the city will continue to be keen. The amount of change which
would occur as a result of the proposed transaction is not significant, and
there are six remaining competing banks that provide numerous banking alter
natives within the trade area of the resulting bank. The injection of an aggres
sive larger bank in the Albany, Indiana, market area is expected to increase
competition at that location.
The Board of Directors is of the opinion that the merger would not lessen
competition, tend to create a monopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources and Future Prospects. Financial and
managerial resources are satisfactory with respect to both participating banks
and are so projected for the resulting bank. The earnings record of State has
not been as favorable as Applicant’s; and the future prospects of State, as a
part of the resulting bank, would be enhanced. Future prospects of the result
ing bank are favorable.
Convenience and Needs of the Community to be Served. As a result of the
merger, the Albany, Indiana, area would gain the advantage of a bank with a
larger lending lim it, more than $300,000 higher, than now available to State.
While the proposal would not significantly benefit the trade area served by
Applicant, it would permit the resulting bank to provide additional banking
services for the Albany area.
Based on the foregoing information, the Board of Directors has concluded
that approval of the application is warranted.

BANK ABSORPTIONS APPROVED BY THE CORPORATION
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No. 30
Central Carolina Bank & Trust Company
Durham, North Carolina
to merge with
Bank of Yadkin
Yadkinville

B a n k in g O ffices
1n
o p e ra tio n

135,170

7,474

To be
o p e ra te d

S u m m a ry re p o rt by A tto r n e y G e n e ra l, M a y 2 2 , 1 9 6 9
The closest offices of the merging banks are eighteen miles apart; branches
of two additional banks lie within the intervening area. It is unlikely that any
significant amount of direct competition would be eliminated by this merger.
Since North Carolina law permits state-wide branching, the merger would
eliminate potential competition in that either bank could be permitted to
branch de novo into the service area of the other. Bank of Yadkin, however,
has never opened a de novo branch, and has confined its operational activities
to Yadkin County. Central Bank has demonstrated an aggressive, expansionminded policy in the past, and could become a competitor of Bank of Yadkin
through de novo branching in the Yadkinville vicinity.
B a s is f o r C o rp o ra tio n

a p p ro v a l, J u ly

1969

Central Carolina Bank & Trust Company, Durham, North Carolina (Central),
an insured nonmember bank with total resources of $135 million, has applied,
pursuant to Section 18(c) and other provisions of the Federal Deposit Insur
ance Act, for the Corporation’s prior consent to merge with Bank of Yadkin,
Yadkinville, North Carolina (Yadkin), which has total resources of $7.5 million,
under the charter and with the title of Central and, incident thereto, to estab
lish the sole office of Yadkin as a branch.
Competition. Central, operating 27 branches, is a regional bank offering a
complete range of banking services. All but three of its offices are located
within a 55-mile radius of Durham which, together with Chapel Hill (12 miles
southwest) and Research Triangle Park (8 miles south), comprises the princi
pal market area. The Durham area is heavily industrialized; and, through the
Research Triangle Park, research development has become an important eco
nomic activity, spearheaded by the State’s three major universities which are
located in the area. Agriculture continues to be an important segment of the
economy. Yadkinville is located about 95 miles west of Durham, and the clos
est office of Central is at Mocksville, 19 miles southeast. Yadkin, the only bank
in Yadkinville, serves a limited local area in which there is some industry but
where agriculture is of major economic importance.
There is no overlapping of the service areas of Central and Yadkin because
neither bank derives business from the service area of the other, and there are
no known instances of deposit and loan customers using the facilities of both
banks. Central, ranking eighth in size among all North Carolina banks, com
petes with offices of the 10 largest banks. It is much smaller than most of its
major competitors, holding 2.3 percent of total deposits held by all banks com
peting in the combined service areas, as compared to 25.8 percent for the
largest bank, 21.6 percent for the second largest, and 3.9 percent and 2.6 per
cent, respectively, for the sixth and seventh largest. The merger with Yadkin
will increase Central's share by only 0.1 percent, and its ranking as eighth

FEDERAL DEPOSIT INSURANCE CORPORATION

largest bank will not be changed. The addition of the sole office and resources
of Yadkin will not alter its competitive stature to any significant degree. Major
competition for Yadkin is provided by five branches of the State's fifth largest
bank; and, in this respect, the substitution of a branch of Central for the sole
office of Yadkin should tend to increase competition.
The Board of Directors is of the opinion that the merger would not substan
tially lessen competition, tend to create a monopoly, or in any other manner
be in restraint of trade.
Financial and Managerial Resources and Future Prospects. These factors are
satisfactory with respect to both participating banks and are so projected for
the resulting bank.
Convenience and Needs of the Community to be Served. Yadkin, because of
its comparatively limited resources and unit structure, is unable to provide a
full range of banking services. As a result of the merger, the Yadkinville area
would gain the advantage of a large regional bank which provides all types of
banking facilities on a larger and broader scale and, thus, could better serve
the convenience and needs of the community.
Based on the foregoing, the Board of Directors has concluded that approval
of the application is warranted.

R esources

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No. 31
Bank of Pennsylvania
Reading, Pennsylvania

In
o p e ra tio n

213,757

to merge with
Washington Street Bank and Trust Company
Reading
(in organization)

To be
o p e ra te d

465

S u m m a ry re p o r t b y A tto r n e y G e n e ra l, A p ril 2 2 , 1 9 6 9
This merger is merely part of a corporate reorganization which will make
Bank of Pennsylvania a wholly owned subsidiary of a one-bank holding com
pany and as such will have no effect on competition.
B a s is f o r C o rp o ra tio n

a p p ro v a l, J u ly

1969

Pursuant to Section 18(c) of the Federal Deposit Insurance Act, application
has been filed by Bank of Pennsylvania, Reading, Pennsylvania, (Applicant),
with total resources of $213.8 million for consent to merge with Washington
Street Bank and Trust Company, Reading, Pennsylvania, (In organization),
under the charter and with the title of the former. The resulting bank will oper
ate from the present main office and 16 existing and three approved branch
offices of Applicant.
The proposal involves the formation of a one-bank holding company to hold
stock ownership of Bank of Pennsylvania through the simultaneous merger and
reorganization with Washington Street Bank and Trust Company, an interim
bank. The latter bank will not be in operation as a commercial bank prior to
the merger. The same banking business will be performed by Bank of Pennsyl

BANK ABSORPTIONS APPROVED BY THE CORPORATION

vania at all locations as was performed by it previous to the merger. The same
management and personnel will be continued. The proposal will not, of itself,
change the banking services which Applicant has provided usefully to its serv
ice area on a convenient and successful basis for many years. The proposal
involves only a change in the form of organization of Bank of Pennsylvania
and will not have any adverse effect upon competition. All factors required to
be considered relative to the application have been favorably resolved.
On the basis of the above information, the Board of Directors has concluded
that approval of the application is warranted.

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No. 32
Bushwick Savings Bank
New York (Brooklyn), New York
(change title to
Anchor Savings Bank)
to merge with
Anchor Savings Bank
New York (Brooklyn)

B a n k in g O ffices
In
o p e ra tio n

201,588

388,155

To be
o pe ra te d

S u m m a ry re p o r t b y A tto r n e y G e n e ra l, M a rc h 10, 1 9 6 9
The proposed merger would combine the eleventh and the twentieth largest
savings bank in Brooklyn, making the resulting bank, with nine offices, the
sixth-largest institution of its kind headquartered in Brooklyn.
Deposits of the combined banks would total $538.8 million, representing 5.3
percent of the more than $10 billion in deposits held by all savings banks
headquartered in Brooklyn.
The resulting bank would have $433.9 million or 1.67 percent of the $25.9
billion total real estate mortgage loans held by savings banks in the New
York City area.
B a s is fo r C o rp o ra tio n

a p p ro v a l, J u ly 9,

1969

Bushwick Savings Bank, New York (Brooklyn), New York (Bushwick), an
insured mutual savings bank with total deposits of about $187,093,000, has
applied, pursuant to Section 18(c) and other provisions of the Federal Deposit
Insurance Act, for the Corporation’s prior approval to merge with Anchor Sav
ings Bank, New York (Brooklyn), New York (Anchor), also an insured mutual
savings bank, which has total deposits of about $356,744,000. The banks
would merge under the charter of Bushwick and with the title “ Anchor Savings
Bank"; and, incident to the merger, the main office and three existing and one
approved but unopened branch offices of Anchor would become the main office
and branch offices, respectively, of the resulting bank. The resulting bank
would have a total of nine banking offices.
Competition. Bushwick operates three offices in the Borough of Brooklyn
and one in Nassau County, a suburban area east of Brooklyn. Anchor operates
two offices in the Borough of Brooklyn, one in the Borough of Richmond
(Staten Island), one in Nassau County, and has approval for a branch office,

FEDERAL DEPOSIT INSURANCE CORPORATION

as yet unopened, in Manhattan. Despite the concentration of banking offices in
the Borough of Brooklyn, competition between the subject banks is practically
nonexistent. Their closest offices are some 4 miles apart, and there are numer
ous offices of other savings banks, savings and loan associations, and com
mercial banks situated between them.
Competition in New York City is intense among banks in particular and finan
cial institutions in general. This merger would have virtually no effect on the
present concentration of deposits or loans or on existing competition. Each of
the participating banks has less than 2 percent of the total deposits and of
the total loans held by savings banks in New York City, and the resulting bank
would continue to have less than 2 percent of each. Furthermore, there are 46
other mutual savings banks operating 219 offices in New York City. Many of
these institutions are far larger than the resulting bank would be. In addition,
substantial competition in New York City is provided by commercial banks and
savings and loan associations. In the city there are 823 commercial bank
offices holding an estimated $4.6 billion savings and 143 offices of savings
and loan associations holding savings estimated to be in excess of $4 billion.
Total savings in New York City in the commercial banks, savings and loan
associations, and savings banks combined is estimated to be some $38 billion;
and the resulting bank’s share wo,uld be less than 1.5 percent.
The Board of Directors is of the opinion that the proposed merger would not
substantially lessen competition, tend to create a monopoly, or in any other
manner be in restraint of trade.
Financial and Managerial Resources and Prospects. The banking factors are
considered acceptable with respect to the individual participating banks, but
they are even more favorable with respect to the resulting bank.
Convenience and Needs of the Community to be Served. Thrift services and
mortgage loans have been provided by each of the participating institutions in
its own area for over fifty years. The proposed merger would produce a betterbalanced bank with respect to surplus, earnings, and management, and
thereby permit improved service to the communities.
On the basis of the above information, the Board of Directors has concluded
that approval of the bank's application is warranted.

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No. 33
Roachdale Bank and Trust Company
Roachdale, Indiana
to acquire the assets and assume
the deposit liabilities of
Russellville Bank
Russellville

B a n k in g O ffices
In
o p e ra tio n

7,544

1,987

To be
o p e ra te d

S u m m a ry r e p o r t b y A tto r n e y G e n e ra l, J u n e 17, 1 9 6 9
Russellville Bank is situated ten miles west of Roachdale. There are no
banks in the intervening area. According to the application in Roachdale
Bank's service area, Russellville Bank has 1.5 percent of total IPC deposits
while in its own area it has 2.3 percent and Roachdale Bank has 11 percent.

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Thus, it would appear that there is some competition between the two banks
which would be eliminated by the acquisition.
Concurrently with its proposal to acquire Russellville Bank, Roachdale Bank
has applied to the Federal Reserve Board for approval to merge The State
Bank of Russellville ($1.5 million total deposits), the only other bank in the
town. Approval of both applications would eliminate the independent existence
of the only two banks in Russellville and would eliminate direct competition
existing between them, it is contemplated that Russellville Bank would be
closed and the State Bank of Russellville would be operated as a branch of
Roachdale Bank.
Acquisition of both Russellville banks is Roachdale Bank’s only means of
entry in Russellville since Indiana law prohibits branching in a town where
another bank maintains its home office.
While Putnam County overstates the area in which this merger will have its
effect, the increase in concentration in the county as a whole will be substan
tial. Each of the two acquired banks has three percent of county deposits, and
the combined result will be to increase Roachdale Bank’s share from 14 to 20
percent of county deposits.
Since the proposed merger of State Bank of Russellville would eliminate
some direct competition between that bank and Roachdale Bank, and since, it
is a step in a larger program of acquisitions which would increase concentra
tion of control over deposits, this merger will have an adverse competitive
effect.
B a s is f o r C o rp o ra tio n

a p p ro v a l, J u ly

16,

1969

Roachdale Bank and Trust Company, Roachdale, Indiana (Applicant), a State
member bank with total deposits of $6,947,000, has applied, pursuant to the
provisions of Section 18(c)(1)(B) of the Federal Deposit Insurance Act, for the
Corporation’s prior consent to acquire the assets of and assume liability to pay
deposits of $1,711,000 made in Russellville Bank, Russellville, Indiana (Nonin
sured Bank), a noninsured State bank.
Pursuant to other provisions of Section 18(c), Applicant has filed a concurrent
application with the Board of Governors of the Federal Reserve System for
consent to merge with The State Bank of Russellville, Russellville, Indiana (In
sured Bank), an insured nonmember bank which has deposits of $1,580,000,
under Applicant’s charter and with the title “ Tri-County Bank & Trust Company.”
The sole office of Noninsured Bank will be discontinued and its operations com
bined with those of the sole office of Insured Bank which will be established as
a branch of Applicant.
Competition. Roachdale and Russellville, both in Putnam County, are 10
miles apart (east-west), with no banking offices intervening. The service areas
are contiguous; however, U.S. Highway 231, running north-south about midway
between them, has an important effect on traffic patterns and serves as an
effective barrier between the two service areas. There is no significant amount
of competition which would be eliminated between Applicant and the two Rus
sellville banks.
Among nine banks competing in the combined service area, Applicant ranks
fifth, holding 6.3 percent of the aggregate deposits. Insured Bank and Nonin
sured Bank are the smallest, holding 1.4 percent and 1.6 percent, respectively.
The modest increase in the size of Applicant as a result of the two transac
tions would not change its ranking as fifth among the seven remaining banks.
Its competitive stature in the Roachdale service area would not be changed
significantly, except for a larger loan limit.

FEDERAL DEPOSIT INSURANCE CORPORATION

Russellville is a rural farming community which is gradually losing its impor
tance in the local economy as most residents find employment in larger popu
lation centers. It is the smallest town in Indiana (population 372) with two
banks for which it no longer can provide adequate support. Neither bank gen
erates sufficient business to attract management personnel capable of provid
ing modern banking services, and loan lim its are insufficient to serve the credit
needs of the larger farms in the surrounding area. Past efforts to merge these
two banks have failed. Under Indiana banking law, branching is restricted to
the head office county and prohibited in a town where there is a unit bank.
Consequently, Applicant cannot legally acquire only one of the Russellville
banks and establish a branch unless the other is liquidated. The two Russell
ville banks do not now compete effectively with each other because Nonin
sured Bank does not accept savings accounts or offer safe deposit facilities.
Also, divided factions in the community tend to restrict competition for
demand deposits. The conversion of the two banks into a branch of Applicant
will enable the latter to compete for business in that locality, al.ong with the
other area banks, and at the same time provide the public in the Russellville
area with a wider range of improved banking services.
The Board of Directors is of the opinion that the proposals would not sub
stantially lessen competition, tend to create a monopoly, or in any other
manner be in restraint of trade.
Financial and Managerial Resources and Future Prospects. Financial
resources and future prospects are favorable for this proposal, and the merger
and purchase and assumption transaction will solve a management succession
problem in both Insured Bank and Noninsured Bank.
Convenience and Needs of the Community to be Served. The merger and
purchase and assumption transaction will enable Applicant to better serve the
financial needs of the Russellville farming community through greater
resources and a larger lending lim it. It will provide more aggressive manage
ment, including better-trained personnel, and can offer stronger community
leadership. Applicant plans to enlarge and modernize the banking quarters and
to provide locally improved trust services, customer investment services, safe
deposit facilities, night depository, savings department, and increased activity
in consumer loans and residential mortgages to better serve the convenience
and needs of the Russellville community.
Based on the foregoing, the Board of Directors has concluded that approval
of the purchase and assumption transaction is warranted.

No. 34
Casey State Bank
Casey, Iowa
(change title to
Security State Bank)
to merge with
Menlo Savings Bank
Menlo

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In
o p e ra tio n

2,708

2,399

To be
o p e ra te d

BANK ABSORPTIONS APPROVED BY THE CORPORATION

S u m m a ry re p o r t by A tto r n e y G e n e ra l, J u ly 8, 1 9 6 9
Menlo (population 500) and Casey (population 600) are located in Beaver
and Thompson Townships, respectively, of Guthrie County, Iowa. This is a pre
dominantly agricultural area.
Since the two banks involved are commonly owned and managed, and have
been so since their inception, no adverse competitive effect is likely to occur
from this merger.
B a s is f o r C o rp o ra tio n

a p p ro v a l, J u ly 2 5 ,

1969

Casey State Bank, Casey, Iowa (Casey Bank), an insured nonmember bank
with total resources of $2,700,000, has applied, pursuant to Section 18(c) and
other provisions of the Federal Deposit Insurance Act, for the Corporation’s
prior consent to merge with Menlo Savings Bank, Menlo, Iowa (Menlo Savings),
an insured nonmember bank which has total resources of $2,400,000, under
the charter of Casey Bank and with the title “ Security State Bank." Consent is
also requested to establish the sole office of Menlo Savings as a branch (bank
office under Iowa law) of the resulting bank.
Competition. Casey and Menlo, with 1960 populations of 589 and 421,
respectively, are rural agricultural communities located 6 miles apart in west
ern Iowa, some 50 miles west of Des Moines. The economy of the area is
dependent almost entirely upon agriculture in which livestock and corn are the
major sources of income. The service areas of Casey Bank and Menlo Savings
are contiguous but do not overlap to any significant degree. In any event,
there is no meaningful competition between the two banks because of
common ownership and active management— a situation which has been pres
ent since Casey Bank was established as a unit bank in 1955 through the
spin-off of the Casey Branch of Menlo Savings, which had been established in
1931. In practice, the two unit banks have operated almost as one. The
merger will restore the pre-1955 main office-branch relationship, except that
the main office will be in Casey instead of Menlo, and will formalize the exist
ing relationship in one corporate organization.
Casey Bank and Menlo Savings presently are the two smallest banks among
six competing in their combined service area, holding 9.4 percent and 7.6 per
cent, respectively, of the total bank deposits. The resulting bank will rank
third, in terms of total deposits (17 percent); however, it will not be signifi
cantly larger than the two banks which then will rank as the two smallest—
15.8 percent and 14.3 percent, respectively, of the total deposits. It will be
substantially smaller than the two largest banks which are located in the
county seat towns of Greenfield and Guthrie Center, each holding one-fourth or
more of the total deposits.
The Board of Directors is of the opinion that the merger would not substan
tially lessen competition, tend to create a monopoly, or in any other manner
be in restraint of trade.
Financial and Managerial Resources and Future Prospects. These factors are
satisfactory with respect to both participating banks and are so projected for
the resulting bank.
Convenience and Needs of the Community to be Served. Restoration of the
main office-branch relationship in lieu of the two-unit bank operation will not
alter the convenience and needs factor. The resulting bank will provide the
same services as are now being provided at the same locations.
Based on the foregoing, the Board of Directors has concluded that approval
of the application is warranted.

FEDERAL DEPOSIT INSURANCE CORPORATION

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No. 35
West Side Savings Bank
New York, New York
(change title to
Prudential Savings Bank)
to merge with
The Prudential Savings Bank
New York (Brooklyn)

B a n k in g O ffices
In
o p e ra tio n

142,346

169,772

To be
o pe ra te d

S u m m a ry re p o r t b y A tto r n e y G e n e ra l, A p ril 2 5 , 1 9 6 9
The closest offices of the two banks are 3.5 miles apart, and there are
numerous alternatives (other savings banks, commercial banks, and savings
and loan associations) in the intervening areas. Some direct competition exists
for both loans and for th rift accounts of residents of and commuters to New
York City which will be eliminated by the merger.
In 1968, the boroughs of Manhattan and Brooklyn were served by 37 sav
ings banks with 119 branches controlling about $27.3 billion in deposits.
The resulting bank would hold about 1.1 percent of savings deposits in Man
hattan and Brooklyn savings banks. The addition of savings deposits held by
commercial banks and by savings and loan associations located in these bor
oughs would reduce this percentage.
This merger would appear to be part of a trend toward concentration of
deposits in a steadily decreasing number of savings banks in New York City.
B a s is f o r C o rp o ra tio n

a p p ro v a l, J u ly 2 5 ,

1969

West Side Savings Bank, New York (Manhattan), New York (West Side), an
insured mutual savings bank with total deposits of about $133,678,000, has
applied, pursuant to Section 18(c) and other provisions of the Federal Deposit
Insurance Act, for the Corporation’s prior approval to merge with The Pruden
tial Savings Bank, New York (Brooklyn), New York (Prudential), also an insured
mutual savings bank, which has total deposits of about $157,592,000. The
banks would merge under the charter of West Side and with the title “ Pruden
tial Savings Bank"; and, as an incident to the merger, the four offices of Pru
dential would become branches of West Side, increasing the number of its
offices to seven.
Competition. West, Side operates its main office and two branches in the
Greenwich Village area on the west side of lower Manhattan. Prudential oper
ates a main office and two branches in Brooklyn and a third branch in Elmont,
Nassau County, a suburban area east of the city. The 1960 population of New
York City was about 7,782,000.
Competition between the participating banks is practically nonexistent. Their
closest offices are some 3.5 miles apart, and the East River effectively sepa
rates the primary service areas of these two offices. In addition, there are
numerous offices of other savings banks, savings and loan associations, and
commercial banks situated between them.
Competition in New York City and suburban Nassau County is intense
among banks in particular and financial institutions in general. This merger
would have virtually no effect on the present concentration of deposits or
loans or on existing competition. West Side is the smallest savings bank head

BANK ABSORPTIONS APPROVED BY THE CORPORATION

quartered in Manhattan, and Prudential is the smallest headquartered in
Brooklyn. Each has approximately 0.5 percent of the total deposits and total
loans of savings banks in New York City, and the resulting bank would have
approximately 1 percent of each. Furthermore, there are 46 other New York
City mutual savings banks operating 235 offices. Many of these institutions are
far larger than the resulting bank would be. In addition, substantial com peti
tion is provided by commercial banks and savings and loan associations.
Located in New York City and Nassau County are 179 offices of savings and
loan associations which hold an estimated $5 billion of savings and 1,037
offices of commercial banks holding an estimated $6 billion of savings. Total
savings in New York City and Nassau County commercial banks, savings and
loan associations, and savings banks is estimated to be over $39 billion; and
the resulting bank's share would be approximately 0.8 percent.
The Board of Directors is of the opinion that the proposed merger would not
substantially lessen competition, tend to create a monopoly, or in any other
manner be in restraint of trade.
Financial and Managerial Resources and Prospects. The banking factors are
considered acceptable with respect to the individual participating banks, but
are even more favorable with respect to the resulting bank.
Convenience and Needs of the Community to be Served. Thrift services and
mortgage loans have been provided by each of the participating institutions in
its own area for over fifty years. The proposed merger would produce a betterbalanced bank with respect to surplus, earnings, and management, and thereby
permit improved service to the communities.
On the basis of the above information, the Board of Directors has concluded
that approval of the bank’s application is warranted.

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No. 36
First Virginia Bank
Annandale, Virginia
to merge with
Old Dominion Bank
Arlington
and
Falls Church Bank
Falls Church

B a n k in g O ffices
In
o p e ra tio n

99,128

125,707

51,310

To be
o pe ra te d

S u m m a ry re p o r t by A tto r n e y G e n e ra l, A p ril 2 5 , 1 9 6 9
The three banks involved in the proposed merger have all been subsidiaries
of the Virginia Bankshares Corporation, a registered bank holding company, for
several years. Therefore, we conclude that the proposed merger will not elim i
nate any effective competition.
B a s is f o r C o rp o ra tio n

a p p ro v a l, J u ly 3 1 ,

1969

Pursuant to Section 18(c) and other provisions of the Federal Deposit Insur
ance Act, an application has been filed with the Corporation for its prior con
sent to merge Old Dominion Bank, Arlington, Virginia (Old Dominion), an
insured state nonmember bank with total deposits of $110,922,000, and Falls
Church Bank, Falls Church, Virginia (Church Bank), an insured State nonmem

FEDERAL DEPOSIT INSURANCE CORPORATION

ber bank with total deposits of $51,310,000, with Mount Vernon National Bank
and Trust Company of Fairfax County, Annandale, Virginia (Continuing Bank),
with total deposits of $88,020,000, which converted from a national associa
tion to an insured State nonmember bank on June 6, 1969, with the title
“ First Virginia Bank.” The 22 present offices and the five approved but un
opened branches of Old Dominion and Church Bank would become branches of
Continuing Bank, increasing the number of offices of Continuing Bank to 46.
Competition. All offices of Continuing Bank will operate in one general ser
vice area consisting of a northern Virginia section which is part of the greater
Washington, D.C., metropolitan area. This service area consists of Arlington
County, Fairfax County, and the independent cities of Alexandria and Falls
Church. The main offices of the participating banks are within 3 to 4 miles of
each other, but there are numerous branches of competing banks intervening.
Additionally, each of the participating banks is owned by the same registered
bank holding company, and this proposal would not increase the holding com
pany’s share of the market in northern Virginia. There is no significant amount
of actual or potential competition, between the participating banks, which
would be eliminated by this proposal, and its consummation would have no
discernible anticompetitive effects.
The Board of Directors is of the'opinion that the proposed transaction would
not substantially lessen competition, tend to create a monopoly, or in any
manner be in restraint of trade.
Financial and Managerial Resources and Future Prospects. These factors are
satisfactory with respect to the three participating banks and are so projected
for Continuing Bank.
Convenience and Needs of the Community to be Served. As a result of the
merger, the trade area would gain the advantage of a larger bank which has
an increased lending lim it providing all types of banking operations on a larger
and broader scale and which could, as a result, better serve the convenience
and needs of the community.
Based on the foregoing information, the Board of Directors has concluded
that approval of the application is warranted.

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No. 37

B a n k in g O ffices
In
o p e ra tio n

Bev Bank
Chicago, Illinois
(in organization; change title to
Beverly Bank)
to acquire the assets and assume
the deposit liabilities of
Beverly Bank
Chicago

To be
o pe ra te d

126,802

BANK ABSORPTIONS APPROVED BY THE CORPORATION
B a s is f o r C o rp o ra tio n

a p p ro v a l, A u g u s t 7,

1969

Pursuant to Sections 5 and 18(c) and other provisions of the Federal
Deposit Insurance Act, applications have been filed for Federal deposit insur
ance for Bev Bank, Chicago, Illinois (Bev), a proposed new bank in organiza
tion, and for consent to acquire the assets and assume the liability for depos
its made in Beverly Bank, Chicago, Illinois (Beverly), which has only one office
and total resources of $126,802,400. The resulting bank would operate under
the charter of Bev, and with Beverly's title, at the present location of Beverly.
The proposal involves the formation of a one-bank holding company to hold
stock ownership of the resulting bank. Bev will not be in operation as a com
mercial bank prior to consummation of the transaction and will begin business
at the present location of Beverly with the latter’s assets, liabilities, capital,
and management.
Beverly has provided needed and useful banking services to its trade area
on a convenient and successful basis for many years. The subject proposal will
not alter these services or the service area and, involving only a change in
form of corporate organization, will, of itself, have no effect on competition. All
factors required to be considered relative to each application are favorably
resolved.
On the basis of the above information, the Board of Directors has concluded
that approval of the applications is warranted.

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No. 38
Bankers Trust Company of Windsor Heights
Windsor Heights, Iowa
(proposed new bank)
to acquire a portion of the assets and
assume a portion of the deposit
liabilities of
Bankers Trust Company
Des Moines

B a n k in g O ffices
In
o p e ra tio n

To be
o p e ra te d

6,9003

S u m m a ry r e p o r t by A tto r n e y G e n e ra l, A p ril 2 5 , 1 9 6 9
Since no other bank presently maintains a limited facility banking office in
Windsor Heights which would be required to close, and since new banks could
be established in that community, and since there are presently alternative
banks a few miles from Windsor Heights, the proposed transaction would not
appear to have any significantly adverse effect on competition.
B a s is f o r C o rp o ra tio n

a p p ro v a l, A u g u s t 7,

1969

The proposals would establish a new bank in Windsor Heights, Iowa,
through the acquisition and assumption of a portion of the assets, liabilities,
and capital accounts of Bankers, a $137.7 million bank headquartered in Des
Moines, 5.3 miles east of Applicant. The proposed new bank would replace
Bankers' limited-service Windsor Heights office. Applicant would acquire those
portions of deposits and loans which represent the amounts estimated to origi
nate in the Windsor Heights area. Following consummation of the proposals,
Bankers and the proposed new bank would be commonly owned, controlled,

FEDERAL DEPOSIT INSURANCE CORPORATION

and managed. There are no other banks in Windsor Heights, although the
Supervisory Authority has confirmed that proponents of a bank yet to be orga
nized have requested a charter for an undisclosed site in that community. It is
apparent from the nature of the proposed transactions that the participating
banks are not now in competition, and the resulting common ownership and
control precludes competition between them in the future.
The purchase and assumption transaction would not lessen competition,
tend to create a monopoly, or in any other manner be in restraint of trade.
All factors required to be considered relative to the applications have been
favorably resolved.
Based on the foregoing, the Board of Directors has concluded that approval
of the applications is warranted.
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No. 39
Esperson State Bank
Houston, Texas
(in organization; change title to
Bank of Texas)
to acquire the assets and assume
the deposit liabilities of
Bank of Texas
Houston

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B a n k in g O ffices
In
o p e ra tio n

200

79,197

To be
o p e ra te d

S u m m a ry re p o rt by A tto r n e y G e n e ra l, J u n e 2, 1 9 6 9
[This proposal] is part of a transaction which will result in a presently existing
bank becoming a wholly owned subsidiary of a one-bank holding company.
Thus, [this] merger is merely part of a corporate reorganization and as such will
have no effect on competition.
B a sis fo r C o rp o ra tio n a p p ro v a l, A u g u s t 7, 1 9 6 9
Pursuant to Sections 5 and 18(c) and other provisions of the Federal
Deposit Insurance Act, applications have been filed for Federal deposit insur
ance for Esperson State Bank, Houston, Texas (Esperson Bank), a proposed
new bank in organization, and for consent to acquire the assets and assume
the liability for deposits made in Bank of Texas, Houston, Texas (Texas Bank),
which has only one office and total resources of $79,197,000. The resulting
bank would operate under the charter of Esperson Bank, and with Texas
Bank's title, at the present location of Texas Bank.
The proposal involves the formation of a one-bank holding company to hold
stock ownership of the resulting bank. Esperson Bank will not be in operation
as a commercial bank prior to consummation of the transaction and will begin
business at the present location of Texas Bank with the latter’s assets, liabili
ties, capital, and management.
Texas Bank has provided needed and useful banking services to its trade
area on a convenient and successful basis since 1957. The subject proposal
will not alter these services or the service area and, involving only a change in
form of corporate organization, will, of itself, have no effect on competition. All
factors required to be considered relative to each application are favorably
resolved.
On the basis of the above information, the Board of Directors has concluded
that approval of the applications is warranted.

BANK ABSORPTIONS APPROVED BY THE CORPORATION
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No. 40
Johnstown Bank and Trust Company
Johnstown, Pennsylvania
to merge with
The First National Bank of Bakerton
Bakerton

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In
o p e ra tio n

53,984

1,523

To be
o p e ra te d

S u m m a ry re p o r t by A tto r n e y G e n e ra l, M a rc h 12, 1 9 6 9
Bakerton Bank (total deposits $1.5 million) operates its sole office in Bakerton, Pennsylvania. Bakerton (population 1,057) is a small mining community
some 30 miles north of Johnstown in rural Cambria County.
The closest offices of the merging banks are 14 miles apart and there are
intervening banking alternatives. Thus, it does not appear that this merger will
eliminate any significant existing competition. Pennsylvania law would permit
Johnstown Bank to branch de novo into Bakerton, but the size of the Bakerton
community and the existence of other likely potential entrants reduce the sig
nificance of the elimination of potential competition by this merger.
We conclude that this merger is not likely to have a significantly adverse
effect on competition in Cambria County.
B a s is fo r C o rp o ra tio n a p p ro v a l, A u g u s t 14, 1 9 6 9
Johnstown Bank and Trust Company, Johnstown, Pennsylvania (Applicant),
an insured State nonmember bank with total deposits of $48,977,400, has
applied, pursuant to Section 18(c) and other provisions of the Federal Deposit
Insurance Act, for the Corporation's prior approval to merge with The First
National Bank of Bakerton, Bakerton, Pennsylvania (National), which has total
deposits of $1,353,300. The banks would merge under the charter and with
the title of Applicant; and, as an incident to the merger, the one office of
National would become a branch of Applicant, increasing the number of its
offices to nine.
Competition. Johnstown (population 53,900) is located in southern Cambria
County, approximately 70 miles east of Pittsburgh. In 1960 the population of
the Johnstown, Pennsylvania, SMSA, which consists of Cambria and Somerset
Counties, was 280,733. The economy of Johnstown and the surrounding area
is dominated by steel production and related products. All of Applicant's
offices are in or near Johnstown. The most distant office is at New Florence,
16 miles northwest of Johnstown.
Bakerton is an unincorporated village situated in northern Cambria County
approximately 30 miles northeast of Johnstown. It has a population of 1,100,
and the local economy is primarily dependent upon coal mining. National's pri
mary trade area is delineated as being the area within an 8-mile radius of Bak
erton.
The main offices of the participating banks are 30 miles apart, and the short
est distance between offices is the 24 miles between Vinco and Bakerton. The
trade areas served by Applicant and National do not overlap, and there are
other banking offices in the intervening area. There is very little, if any, direct
competition which would be eliminated by this proposed transaction.
Applicant’s principal competitor is United States National Bank in Johns
town, which is more than twice as large as Applicant. United States National
Bank in Johnstown has a branch at Carrolltown, 3 miles east of Bakerton, and

FEDERAL DEPOSIT INSURANCE CORPORATION

a branch at Ebensburg, 12 miles south of Bakerton. Therefore, it is also
National’s primary competitor. This proposed transaction would increase Appli
cant’s share of the relevant market by less than 1 percent.
Legally each of the participating banks could branch de novo into the trade
area served by the other bank, but this does not seem likely. In the past,
National has not expanded by de novo branching, and in view of the much
larger banks operating in Applicant’s trade area it does not seem probable that
National would branch de novo into that area in the future. Applicant has not
entered National’s trade area by de novo branching, and in view of the exist
ing banking offices in that area it does not appear to be a desirable area for
Applicant to branch de novo.
The Board of Directors is of the opinion that the merger would not substan
tially lessen competition, tend to create a monopoly, or in any other manner be
in restraint of trade.
Financial Resources. The financial resources are satisfactory with respect to
both participating banks and are so projected for the resulting bank.
Managerial Resources. Following the death of National's form er executive
officer in September of last year, the bank was faced with a serious manage
ment problem. At the request of National, Applicant has been providing National
with an executive officer since October 1968. This proposed transaction would
solve National's management problem; but absent the merger, National would
again have a serious management problem. The resulting bank would have
adequate managerial resources.
Future Prospects. Applicant has been a much more aggressive competitor
than National and has grown much faster. The future prospects of National, as
a part of the resulting bank, would be enhanced; and the future prospects of
the resulting bank are favorable.
Convenience and Needs of the Community to be Served. This proposed
merger would have no significant effect in the Johnstown area, but it would
improve the quantity and quality of banking services in the Bakerton area.
Based on the foregoing information, the Board of Directors has concluded
that approval of the application is warranted.

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No. 41
Commonwealth Bank and Trust Company
Muncy, Pennsylvania
to merge with
The First National Bank of Hughesville
Hughesville

B a n k in g O ffices
In
o p e ra tio n

30,087

5,841

To be
o p e ra te d

S u m m a ry re p o r t b y A tto r n e y G e n e ra l, J u n e 18, 1 9 6 9
The closest offices of First National Bank of Hughesville (FNB) and Com
monwealth Bank and Trust Company (CBT) are located in Hughesville and
Muncy, respectively, approximately four miles apart. No banking alternatives
intervene. Approval of the merger would leave only one independent commer
cial banking alternative in both Hughesville and Muncy. The merger would
eliminate direct competition between the banks for both deposits and loans.
The Muncy-Hughesville area is served by nine unit banks. CBT controls

BANK ABSORPTIONS APPROVED BY THE CORPORATION

approximately 8 percent of total deposits and 7 percent of IPC demand depos
its in the area; merger with FNB would nearly double those shares. The result
ing bank would hold the second largest share of area deposits. These statistics
may understate the competitive position of the resulting bank for CBT’s total
deposits make CBT more than twice the size of its nearest Muncy-Hughesville
competitor.
We conclude that this merger would have an adverse effect on competition.
B a s is fo r C o rp o ra tio n

a p p ro v a l, A u g u s t

14,

1969

Commonwealth Bank and Trust Company, Muncy, Pennsylvania (Applicant),
an insured nonmember bank with total deposits of $26,817,000, has applied,
pursuant to Section 18(c) and other provisions of the Federal Deposit Insur
ance Act, for the Corporation’s prior approval to merge with The First
National Bank of Hughesville, Hughesville, Pennsylvania (Other Bank), which
has total deposits of $5,351,000. The banks would merge under the charter
and with the title of Applicant; and, as an incident to the merger, the sole
office of Other Bank would become a branch of Applicant, increasing the
number of its offices to seven.
Competition. Applicant's main office in Muncy and Other Bank’s main office
in Hughesville are located approximately 4 miles apart and within 15 miles of
the city of Williamsport, Lycoming County. Both main offices are also located
in Lycoming County and are considerably removed from Applicant's five
branches located in Tioga and Potter Counties to the north. The proposed
merger would have little or no effect on competition in the areas served by the
branches of Applicant and would have only a minimal effect on competition in
the areas served by the respective main offices of the participating banks.
The combined service areas of the two main offices (Muncy-Hughesville ser
vice area) include the city of Williamsport and have a population in excess of
100,000. Competing in this service area are several banks, headquartered in
Williamsport, which are substantially larger than the resulting bank would be,
as well as various other smaller banks located within Muncy and Hughesville
and in nearby communities. The resulting bank would hold a relatively small
share of IPC deposits and loans in the Muncy-Hughesville service area, about 5
percent of each, and would rank fourth in size among competing banks. In
each of the communities most immediately affected, Muncy and Hughesville,
an independent unit bank will continue in competition with the resulting bank
and will provide a convenient alternative for banking services. Some minimal
loss of direct competition would result from the merger, particularly in the
area between Muncy and Hughesville. There would be little, if any, loss of
potential competition in the foreseeable future since although both participat
ing banks could branch de novo into the communities served by the other, the
prospects for such happening appear remote in view of the small size of these
communities and the presence of existing banking offices serving their needs.
Nonbank competition for savings and mortgage loans in the Muncy-Hughesville
service area is provided by two sizeable savings and loan associations located
in Williamsport. Various sales finance and personal loan companies operate
throughout Lycoming County and offer substantial competition for floor plan
and installment types of loans. An office of the Farmers Home Administration
in Williamsport, as well as several sizeable credit unions, also offers notewor
thy competition for various types of loans.
The Board of Directors is of the opinion that the proposed merger would not
substantially lessen competition, tend to create a monopoly, or in any other
manner be in restraint of trade.

FEDERAL DEPOSIT INSURANCE CORPORATION

Financial and Managerial Resources and Future Prospects. Financial
resources are satisfactory with respect to both participating banks. Managerial
resources of Applicant are satisfactory. Other Bank’s chief executive officer is
nearing retirement, and management succession has become a problem which
would be solved by the proposed merger. Management of the resulting bank
would be able to operate the larger institution in a satisfactory manner. The
earnings record of Other Bank has not been as good as Applicant’s; and the
future prospects of Other Bank, as part of the resulting bank, would be
enhanced. Future prospects of the resulting bank are favorable.
Convenience and Needs of the Community to be Served. Merger would
permit the resulting bank to better satisfy the growing need for larger amounts
of credit in the areas served by offices of both participating banks. Merger
would also bring to the Hughesville community a full line of trust services
presently offered by Applicant. Neither of the banks presently operating in
Hughesville offer any trust services. Applicant has computerized many of its
banking services and the resulting benefits would become available to custom
ers of Other Bank, which has no computerized applications. Overall, the con
venience and needs of the communities involved could be better served by the
resulting bank than by either of the participants separately.
Based on the foregoing, the Board of Directors has concluded that approval
of the application is warranted.

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No. 42
Reagan State Bank
Big Lake, Texas
(proposed new bank)

B a n k in g O ffices
In
o p e ra tio n

400

to acquire a portion of the assets
and assume the deposit liabilities of
The Big Lake State Bank
Big Lake

5,047

To be
o pe ra te d

Approved under emergency provisions. No report requested from the A ttor
ney General.
B a s is fo r C o rp o ra tio n

a p p ro v a l, A u g u s t 2 8 ,

1969

Pursuant to Sections 5 and 18(c) of the Federal Deposit Insurance Act,
applications have been filed by Reagan State Bank, Big Lake, Texas, for Fed
eral deposit insurance and for consent to purchase certain assets and assume
the deposit liabilities of The Big Lake State Bank, Big Lake, Texas, an insured
nonmember bank which has been closed and is in the hands of the Banking
Commissioner of the State of Texas.
Estimated losses in the assets of The Big Lake State Bank exceed its capital
funds. The Board of Directors has found that it must act immediately in
approving the applications to prevent the probable failure of The Big Lake
State Bank.
Big Lake, Texas, the county seat of Reagan County, has a population of
about 2,700, with an estimated trade area of 6,700 residents. The Big Lake

BANK ABSORPTIONS APPROVED BY THE CORPORATION

State Bank, the only bank in the community and Reagan County, has operated
for many years and had developed a sizable volume of business before being
closed. It is expected that Reagan State Bank will successfully replace the
former institution.
On the basis of the above information and other information available to the
Corporation, the Board of Directors has concluded that approval of the applica
tions for Federal deposit insurance and consent to the assumption transaction
is warranted.
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No. 43
Allen Bank and Trust Company
Fort Wayne, Indiana
(in organization; change title to
Indiana Bank and Trust Company of
Fort Wayne)
to merge with
Indiana Bank and Trust Company of
Fort Wayne
Fort Wayne

B a n k in g O ffices
In
o p e ra tio n

400

118,620

To be
o p e ra te d

S u m m a ry r e p o r t b y A tto r n e y G e n e ra l, J u ly 2, 1 9 6 9
The proposed merger is part of a transaction which will result in Allen Bank
& Trust Company becoming a wholly owned subsidiary of a one-bank holding
company. Thus, the merger is merely part of a corporate reorganization and as
such will have no effect on competition.
B a s is f o r C o rp o ra tio n

a p p ro v a l, S e p te m b e r 4 ,

1969

Pursuant to Sections 5 and 18(c) and other provisions of the Federal
Deposit Insurance Act, applications have been filed for Federal deposit insur
ance for Allen Bank and Trust Company, Fort Wayne, Indiana (New Bank), a
proposed new bank in organization; and for consent to merge with Indiana
Bank and Trust Company of Fort Wayne, Fort Wayne, Indiana (Old Bank), an
operating nonmember insured bank; and for permission to establish six
branches. Old Bank presently operates seven offices and has total resources of
$118 million. The resulting bank would operate under the charter of New
Bank, and with Old Bank's title, at the seven locations where Old Bank is now
operating.
The proposal involves the formation of a one-bank holding company to hold
stock ownership of the resulting bank. New Bank will not be in operation as a
commercial bank prior to consummation of the transaction and will begin busi
ness at the present locations of Old Bank with the latter's assets, liabilities,
capital, and management.
Old Bank has provided needed and useful banking services to its trade area
on a convenient and successful basis for many years. The subject proposal will
not alter these services or the service area and, involving only a change in
form of corporate organization, will, of itself, have no effect on competition. All
factors required to be considered relative to each application are favorably
resolved.
On the basis of the above information, the Board of Directors has concluded
that approval of the applications is warranted.

FEDERAL DEPOSIT INSURANCE CORPORATION

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No. 44
State Bank and Trust Company
Greenwood, South Carolina
to merge with
The Carolina Bank and Trust Company
of Charleston
Charleston

B a n k in g O ffices
In
o p e ra tio n

178,125

16,616

To be
o p e ra te d

S u m m a ry re p o r t b y A tto r n e y G e n e ra l, J u ly 3 0 , 1 9 6 9
State Bank is the fourth largest bank in South Carolina; it is the fourth larg
est of four commercial banks in South Carolina which maintain statewide oper
ations. On December 31, 1968, State Bank had total assets of $142.3 million
and total deposits of $130 million (including IPC demand deposits of $62.2
m illion). State Bank maintains its head office and three branch offices in
Greenwood and twenty-nine additional branches most of which are located in
the western part of South Carolina.
Carolina Bank operates its head office and two branch offices in Charleston,
South Carolina. On December 31, 1968, Carolina Bank had total assets of
$16.3 million and total deposits of $14.2 million (including IPC demand depos
its of $6.1 m illion).
There is, apparently, no substantial existing competition between the merg
ing banks.
South Carolina law permits statewide branching. State Bank has the capabil
ity and incentive to branch de novo into Charleston County; absent the
proposed merger, it could be expected to do so. State Bank has already
expanded its network of branches east and south from Greenwood to Colum
bia, and presently has application pending to merge with a bank in Orange
burg, 75 miles from Charleston.
State Bank is the fourth largest bank in South Carolina. Each of the three
other major South Carolina banks already maintains an office in Charleston.
The proposed merger will eliminate potential competition between State Bank
and Carolina Bank, presently the largest independent bank in Charleston
County with about 7.6 percent of total county commercial bank deposits.
For these reasons, we conclude that the proposed merger would have an
adverse effect on potential competition in the Charleston area.
B a s is f o r C o rp o ra tio n

a p p ro v a l, S e p te m b e r 4 ,

1969

State Bank and Trust Company, Greenwood, South Carolina (Applicant), an
insured State nonmember bank with total deposits of $161,732,000, has
applied, pursuant to Section 18(c) and other provisions of the Federal Deposit
Insurance Act, for the Corporation’s prior approval to merge with The Carolina
Bank and Trust Company of Charleston, Charleston, South Carolina (Other
Bank), which has total deposits of $14,264,000. The banks would merge under
the charter and with the title of Applicant; and, as an incident to the merger,
the three offices of Other Bank would become branches of Applicant, increas
ing the number of its offices to 45.
Competition. The service area of Applicant consists of portions of 13 coun
ties in the northwestern, central, and western parts of South Carolina. Appli
cant is the fourth largest bank in the State, and this proposal would not

BANK ABSORPTIONS APPROVED BY THE CORPORATION

change that position. Consummation of this transaction would increase Appli
cant's control of area deposits and loans by 1.1 percent and 1.2 percent,
respectively, with the resulting bank holding 13.8 percent of deposits and 12.9
percent of loans. As a result of this proposal, it is believed that competition
among the larger banks in the area would tend to be increased.
Other Bank operates three offices, all in the city of Charleston or its imme
diate suburbs, with a service area population estimated to be 75,000. The
local economy is widely diversified with all types of industry, various large m ili
tary installations, foreign trade, wholesale and retail distribution firms, and
tourism all playing important roles in area employment and prosperity. Pros
pects for continued vigorous growth are favorable.
The main offices of the participating banks are about 175 miles distant from
each other, with the closest branch office of Applicant located approximately
75 miles northwest of Charleston. The two banks operate in separate and dis
tinct trade markets, separated by intervening competing banks and branches
thereof. There is no direct competition between the banks now, and little if
any possibility of future competition via de novo branch entry into each
other's service areas.
This proposal would not intensify the concentration in the service area of
Other Bank nor would it reduce the number of banking alternatives in the
area. The merger would not tend to lessen competition, tend to create a
monopoly, or in any manner be in restraint of trade.
Financial and Managerial Resources and Future Prospects. Financial and
managerial resources of the participating banks appear adequate for the result
ing bank. Future prospects for the resulting bank are more favorable than they
are for the participating banks operating as independent units.
Convenience and Needs of the Community to be Served. The proposed
transaction would have no significant effect in Applicant's present trade area,
with the exception of a slightly increased lending lim it; but the resulting bank
should be better able to serve the convenience and needs of the service area
of Other Bank. Additional benefits available to the customers of Other Bank
would be a full-service trust department, computer services, travel agency ser
vices, and larger lending limit.
The Board of Directors has concluded from the foregoing information that
approval of the merger application is warranted.

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No. 45
First State Bank
Aransas Pass, Texas
(proposed new bank)
to acquire a portion of the assets
and assume the deposit liabilities of
The First State Bank, Aransas Pass, Texas
Aransas Pass

th o u s a n d s
o f d o lla rs )

B a n k in g O ffices
In
o p e ra tio n

800

11,583

To be
o pe ra te d

Approved under emergency provisions. No report requested from the Attor
ney General.

FEDERAL DEPOSIT INSURANCE CORPORATION
B a s is f o r C o rp o ra tio n

a p p ro v a l, S e p te m b e r 5,

1969

Pursuant to Sections 5 and 18(c) of the Federal Deposit Insurance Act,
applications have been filed by First State Bank for Federal deposit insurance
and for consent to purchase certain assets and assume the deposit liabilities
of The First State Bank, Aransas Pass, Texas, an insured nonmember bank
which has been closed and is in the hands of the Banking Commissioner of
the State of Texas.
Estimated losses in the assets of The First State Bank, Aransas Pass, Texas,
exceed its capital funds. The Board of Directors has found that it must act
immediately in approving the applications to prevent the probable failure of
The First State Bank, Aransas Pass, Texas.
Aransas Pass has a population of about 7,000, with an estimated trade area
of 15,000 residents. The First State Bank, Aransas Pass, Texas, the only bank
in the community, has operated for many years and had developed a sizable
volume of business before being closed. The closest banking facilities outside
Aransas Pass are 8 miles distant. It is expected that First State Bank will suc
cessfully replace the former institution.
Based on the above information, the Board of Directors has concluded that
approval of the applications for Federal deposit insurance and consent to the
assumption transaction is warranted.

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No. 46
Eastern Bank and Trust Company
Whiteville, North Carolina
(in organization; change title to
Waccamaw Bank and Trust Company)
to acquire the assets and assume
the deposit liabilities of
Waccamaw Bank and Trust Company
Whiteville

B a n k in g O ffices
To be
o p e ra te d

In
o p e ra tio n

225

92,415

a p p ro v a l, S e p te m b e r 12,

1969

Pursuant to Sections 5 and 18(c) and other provisions of the Federal
Deposit Insurance Act, applications have been filed for Federal deposit insur
ance for Eastern Bank and Trust Company, Whiteville, North Carolina (East
ern), a proposed new bank in organization, and for consent for it to purchase
the assets of and to assume the liabilities of Waccamaw Bank and Trust Com
pany, Whiteville, North Carolina (Waccamaw), with total resources of $92.6
million, under the charter of the former but with the title “ Waccamaw Bank
and Trust Company." The resulting bank will operate from the main office and
28 operating or approved branches of Waccamaw.

BANK ABSORPTIONS APPROVED BY THE CORPORATION

The proposal involves the formation of a one-bank holding company to hold
stock ownership of Waccamaw through the simultaneous new bank formation
and the purchase of assets and assumption of liabilities transaction. Eastern
will not be in operation as a commercial bank prior to the consummation of
this transaction, and subsequently it will operate the same banking business at
the same locations as Waccamaw with the same management and personnel.
The proposal, of itself, will not change the banking services which Waccamaw
has provided for its service area on a convenient and successful basis for
many years, nor will it have any effect on competition, since it involves only a
change in charter and form of organization. All factors required to be consid
ered relative to each application are favorably resolved.
On the basis of the above information, the Board of Directors has concluded
that approval of the applications is warranted.

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No. 47
Fremont Bank
Fremont, California
(in organization)
to merge with
Bank of Fremont
Fremont

B a n k in g O ffices
In
o p e ra tio n

---

15,270

To be
o pe ra te d

S u m m a ry re p o r t by A tto r n e y G e n e ra l, J u ly 2 4 , 1 9 6 9
The proposed merger is part of a transaction which will result in the pres
ently existing bank becoming a wholly owned subsidiary of a one-bank holding
company. Thus, the merger is merely part of a corporate reorganization and as
such will have no effect on competition.
B a s is f o r C o rp o ra tio n

a p p ro v a l, S e p te m b e r 2 4 ,

1969

Pursuant to Sections 5 and 18(c) and other provisions of the Federal
Deposit Insurance Act, applications have been filed for Federal deposit insur
ance for Fremont Bank, Fremont, California (New Bank), a proposed new bank
in organization, and for consent to merge with Bank of Fremont, Fremont, Cal
ifornia (Old Bank), an operating insured nonmember bank. Old Bank presently
operates but one office and has total resources of $15,270,000. The resulting
bank will operate under the charter and title of New Bank. This proposal
involves the formation of a one-bank holding company which is to hold stock
ownership, except for directors' qualifying shares, of the resulting bank. New
Bank will not be in operation as a commercial bank prior to consummation of
the transaction and will begin business at the present sole location of Old
Bank with the latter’s assets, liabilities, capital, and management.
Old Bank has provided needed and useful banking service to its trade area
on a convenient and successful basis since 1964. The subject proposal will not
alter these services or the service area and, involving only a change in form of
corporate organization, will, of itself, have no effect on competition. All factors
required to be considered relative to each application are favorably resolved.
On the basis of the above information, the Board of Directors has concluded
that approval of the applications is warranted.

FEDERAL DEPOSIT INSURANCE CORPORATION
Resources
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unm
thousands
of dollars)

No. 48
The Citizens and Southern DeKalb Bank
Avondale Estates, Georgia
to acquire the assets and assume
the deposit liabilities of
The Citizens and Southern Belvedere Bank
Decatur

Banking Offices
In
operation

19,169

8,293

To be
operated

S u m m a ry re p o r t by A tto r n e y G e n e ra l, S e p te m b e r 2 2 , 1 9 6 9
The merging banks are unit banks both located in the unincorporated area
of DeKalb County, 1.8 miles apart. Although branches of the first and third
largest banks in the state as well as several smaller banks have offices in the
same general area, there are no banks in the intervening area. Therefore, it
would appear that this merger will eliminate considerable direct competition
between the merging banks.
The immediate anticompetitive effects of this merger may well be lessened
by the fact that The Citizens and Southern Holding Company has had full
management control of Belvedere Bank since its inception. Under Georgia law
existing banks may not expand beyond their headquarters city, and bank hold
ing companies may not acquire more than 5 percent of the stock of any bank
other than those in which they had substantial existing holdings. Hence, so
long as Dekalb Bank was in Avondale Estates, further expansion by Citizens
and Southern could be achieved only through management control of another
bank. Now that Avondale Estates' city lim its are altered, DeKalb Bank can
expand in the area around its present location, but even that expansion is lim
ited.
Since Citizens and Southern acquired its interest and management control at
the time Belvedere Bank was established, the situation is not unlike de novo
branch banking in those states where such activity is lawful. However, the fact
that Citizens and Southern can only have a 5 percent interest means that
absent this merger there is a real potential that Belvedere Bank might at some
time become independent and develop its competitive potential.
An appropriate market in which to measure the competitive effects of the
merger is DeKalb County, wherein 16 commercial banks operate a total of 25
banking offices. Four additional offices have been approved, and applications
are pending for the addition of three others. In addition to the participating
banks, six of these banks, including one authorized but not yet open, are affili
ated with The Citizens and Southern Holding Company through its relationship
with The Citizens and Southern National Bank. As of December 31, 1968,
these eight banks controlled some 43 percent of total DeKalb County commer
cial bank deposits. Three different banking organizations held around 75 per
cent of DeKalb County deposits, and four separate banking organizations held
over 80 percent. Hence, the banking market in DeKalb County is highly con
centrated. DeKalb Bank itself held about 6.8 percent of total county deposits
while Belvedere Bank held approximately 2.8 percent of such deposits. Their
combined share of these deposits would have been about 9.6 percent, result
ing in the fourth largest bank operating in DeKalb County.
Because of the existing relationship between the merging banks the increase

BANK ABSORPTIONS APPROVED BY THE CORPORATION

in concentration of banking resources in DeKalb County as a result of this
merger would be more apparent than real. However, these figures do demon
strate the dominant position occupied by The Citizens and Southern Holding
Company in the DeKalb banking market.
B a s is f o r C o rp o ra tio n

a p p ro v a l, O c to b e r 10,

1969

The Citizens and Southern DeKalb Bank, Avondale Estates, Georgia
(DeKalb), an insured State nonmember bank with total deposits of
$16,887,000, has applied, pursuant to Section 18(c) and other provisions of
the Federal Deposit Insurance Act, for the Corporation's prior consent to
acquire the assets of and assume liability to pay deposits made in The Citi
zens and Southern Belvedere Bank, Decatur, Georgia (Belvedere), which has
total deposits of $7,442,000. The transaction would be effected under the
charter and with the title of DeKalb; and, as an incident thereto, the sole
office of Belvedere would become a branch of the resulting bank, increasing
the number of its offices to two.
Competition. The sole offices of the participating banks are 1.8 miles apart.
A geographic distribution of deposits indicates, however, that business is
drawn by both banks from virtually all of DeKalb County (population 353,500).
DeKalb County is a key sector in the thriving Metropolitan Atlanta area. Its
economy is diversified and soundly based with a fairly balanced mix between
manufacturing and nonmanufacturing activities. Prospects for future growth are
favorable.
There appears to be little or no effective competition between the participat
ing banks. A close relationship is maintained because of their association with
The Citizens and Southern Holding Company, which owns 93.83 percent of the
outstanding stock of DeKalb and 5 percent of the outstanding stock of Belve
dere. Policies in both banks are largely determined by the holding company. It
appears, therefore, that this proposal would not eliminate substantial competi
tion, intensify the concentration, or reduce the number of banking alternatives
in the area.
There are 26 offices of 17 banks in the area, and the participating banks
rank fifth and 11th in terms of IPC deposits. The resulting bank would be the
fourth largest bank in its trade area, with 9.2 percent of IPC deposits. It is
expected that the remaining competing banks in the trade area will continue to
provide aggressive competition for the resulting bank.
The Board of Directors is of the opinion that this transaction would not tend
to lessen competition, tend to create a monopoly, or in any manner be in
restraint of trade.
Financial and Managerial Resources and Future Prospects. Financial and
managerial resources are satisfactory with respect to both participating banks
and are so projected for the resulting bank. Future prospects for the resulting
bank are more favorable than they are for the participating banks operating as
independent units.
Convenience and Needs of the Community to be Served. Present and poten
tial customers would benefit through the increased financial resources and the
generally expanded services that could be offered in the immediate area by the
resulting bank.
On the basis of the above information and other information available to the
Corporation, the Board of Directors has concluded that approval of the bank's
application is warranted.

FEDERAL DEPOSIT INSURANCE CORPORATION

100

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No. 49

B a n k in g O ffices
In
o p e ra tio n

To be
o pe ra te d

1,275

Clifton Trust Bank
Baltimore, Maryland
(proposed new bank)
to merge with
Clifton Savings Bank
Baltimore

3,103

S u m m a ry re p o r t by A tto r n e y G e n e ra l, S e p te m b e r 2 5 , 1 9 6 8
The directors of Clifton Savings have determined that Clifton Savings must
become a commercial banking institution in order to increase the range of its
services, to maintain and promote better customer relations, and to meet com
petition. To this end they have organized Clifton Trust and propose to merge it
with Clifton Savings. Thus, this merger is merely the means chosen to convert
Clifton Savings into a full-service commercial bank and will have no effect on
competition.
B a s is f o r C o rp o ra tio n

a p p ro v a l, O c to b e r 10,

1969

These proposals would have the effect of replacing $3.1 million Clifton Sav
ings Bank, a mutual savings bank, with a newly organized commercial bank,
Clifton Trust Bank. The latter would be managed by the former directors and
officers of Clifton Savings Bank at the two locations from which Clifton Savings
operates. It is apparent from the nature of the transaction that the applicant,
which has never been operative, and Clifton Savings are not competitive.
The merger transaction would not lessen competition, tend to create a
monopoly, or in any other manner be in restraint of trade.
All factors required to be considered relative to the applications have been
favorably resolved.
Based on the foregoing, the Board of Directors has concluded that approval
of the applications is warranted.

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No. 50

B a n k in g O ffices
In
o p e ra tio n

To be
o p e ra te d

Valley Bank and Trust Company
Chambersburg, Pennsylvania
(in organization)
to merge with
National Valley Bank and Trust Company
Chambersburg

63,550

S u m m a ry re p o r t by A tto r n e y G e n e ra l, S e p te m b e r 3 , 1 9 6 9
[This proposal] is part of a transaction which will result in a presently existing
bank becoming a wholly owned subsidiary of a one-bank holding company.
Thus, [this] merger is merely part of a corporate reorganization and as such will
have no effect on competition.

BANK ABSORPTIONS APPROVED BY THE CORPORATION
B a s is f o r C o rp o ra tio n

a p p ro v a l, O c to b e r

10,

101

1969

Pursuant to Sections 5 and 18(c) and other provisions of the Federal
Deposit Insurance Act, applications have been filed for Federal deposit insur
ance for Valley Bank and Trust Company, Chambersburg, Pennsylvania
(Valley), a proposed new bank in organization, and for consent to the merger
of Valley, under its charter and with its title, with National Valley Bank and
Trust Company, Chambersburg, Pennsylvania (National), which has 13 offices
and total resources of $63,550,000. The resulting bank will operate from the
existing locations of National.
The proposal involves the formation of a one-bank holding company to hold
stock ownership of National, which will convert to an insured State nonmem
ber bank through the simultaneous new bank formation and merger. Valley will
not be in operation as a commercial bank prior to the merger and will begin
business, at the present locations of National, with the latter’s assets, liabili
ties, capital, and management. The proposal, of itself, will not change the
banking services which National has provided usefully to the Chambersburg
community on a convenient and successful basis for many years; nor will it,
involving only changes in charter and form of corporate organization, have any
effect on competition. All factors required to be considered relative to each
application are favorably resolved.
On the basis of the above information, the Board of Directors has concluded
that approval of the applications is warranted.

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No. 51
Barclays Bank of California
San Francisco, California
to acquire the assets and assume
the deposit liabilities of
First Valley Bank
San Jose

B a n k in g O ffices
In
o p e ra tio n

65,575

48,136

To be
o p e ra te d

S u m m a ry re p o r t b y A tto r n e y G e n e ra l, O c to b e r 1, 1 9 6 9
Head offices of the participating banks are located some 50 miles apart;
branches of the respective institutions do not appear to be any nearer. More
over, a substantial number of banks operate in the intervening area, and it
appears that neither participating bank draws significant amounts of business
from the immediate areas served by the other. Consequently, it does not
appear that consummation of the proposed transaction will have any effect on
existing competition.
Currently 16 banks operate in Santa Clara County with total deposits as of
June 30, 1968 of $1.7 billion. Valley Bank stands sixth among these 16 with
about 2.3 percent of these deposits.
California law would permit Barclays Bank to establish de novo branches
within the area served by Valley Bank. However, in view of the market position
of Valley Bank in Santa Clara County, elimination of this possibility is not
likely to have any significantly adverse effect on potential competition.

102

FEDERAL DEPOSIT INSURANCE CORPORATION

B a s is f o r C o rp o ra tio n a p p ro v a l, O c to b e r 17, 1 9 6 9
Barclays Bank of California, San Francisco, California (Barcal), an insured
nonmember bank with total deposits of $56,614,000, has applied, pursuant to
Section 18(c) and other provisions of the Federal Deposit Insurance Act, for
the Corporation’s prior approval to acquire the assets and assume liability to
pay the deposits made in First Valley Bank, San Jose, California (Valley),
which has total deposits of $43,146,000. The resulting bank would operate
under the charter and with the title of Barcal; and, as an incident to the pro
posed transaction, the eight offices of Valley would become branches of Barcal,
increasing the number of its offices to 13.
Competition. Barcal presently serves three separate and distinct trade areas
where it has offices. The main office of Barcal is in downtown San Francisco,
and it has a branch in the downtown section of Los Angeles. The third trade
area served by Barcal is in Orange County, where it has two offices in Ana
heim (1963 estimated population 100,000) and one in Fullerton (1962 esti
mated population 64,000). Orange County is contiguous to Los Angeles
County, which is approximately 425 miles southeast of San Francisco.
The trade area of Valley is delineated as the northwest portion of Santa
Clara County and that portion of San Mateo County served by the Portolo Val
ley Branch of Valley. The only office of Valley that is not located in the north
western part of Santa Clara County is the Portolo Valley Branch in San Mateo
County, 20 miles northwest of San Jose (estimated population 408,500) and
about 5 miles from the Santa Clara County border.
The main offices of the participating banks are about 50 miles apart, and
the shortest distance between offices is the 33 miles separating Barcal's main
office in San Francisco and the Portolo Valley Branch of Valley. This interven
ing area is densely populated, and there are numerous offices of other banks
located there. Each of the participating banks derives all of its business from
the communities where its offices are located and from the immediate sur
rounding areas. The trade areas served do not overlap nor are they contiguous.
There is no direct competition, between the participating banks, which would
be eliminated by this proposed transaction.
In view of the relatively small size of the participating banks and the
number of existing banking offices in the relevant trade areas, it does not
seem likely that they would become competitive in the reasonably near future.
Commercial banking in the State of California is dominated by the eight
largest banks, which had over 85 percent of the IPC deposits held by commer
cial banks as of June 30, 1968. This proposed transaction would increase the
resulting bank’s share of the statewide market to an insignificant 0.2 percent.
Consummation of this proposal would have no appreciable effect on the struc
ture of banking in the State of California.
The Board of Directors is of the opinion that the proposed transaction would
not substantially lessen competition, tend to create a monopoly, or in any
other manner be in restraint of trade.
Financial and Managerial Resources and Future Prospects. Financial and
managerial resources are satisfactory with respect to both participating banks
and are so projected for the resulting bank. Future prospects of the resulting
bank are favorable.
Convenience and Needs of the Community to be Served. Other than an
increase in the legal lending lim it, this proposed transaction would have no
significant effect in the trade areas served by Barcal. In the trade area served
by Valley, this proposal would result in lower costs to the general public for

BANK ABSORPTIONS APPROVED BY THE CORPORATION

103

certain services offered by commercial banks. It would also enable the result
ing bank to meet the demand for larger loans which Valley has experienced
but has not been able to supply. Additionally, this proposal would provide the
San Jose area with another commercial bank equipped to satisfy the needs of
exporters.
Based on the foregoing, the Board of Directors has concluded that approval
of the application is warranted.

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No. 52
Commonwealth Bank and Trust Company
Muncy, Pennsylvania
to merge with
The Union National Bank of Jersey Shore
Jersey Shore

B a n k in g O ffices
In
o p e ra tio n

35,767

9,218

To be
o pe ra te d

S u m m a ry r e p o r t b y A tto r n e y G e n e ra l, S e p te m b e r 19, 1 9 6 9
The Muncy branch of CBT is 30 miles east of Union’s sole office. Except for
The First National Bank of Ralston, a $1.6 million unit bank operating the only
banking office in the northern half of Lycoming County, all other Lycoming
County banking alternatives intervene. Therefore, the merger would not appear
to eliminate any significant amount of existing direct com petition between the
two banks.
Under applicable Pennsylvania law, either bank could be permitted to branch
de novo into the service area of the other. CBT has demonstrated a desire to
extend its service area significantly in recent years. Involvement in three merg
ers with six commercial banks since 1965 has given CBT a substantial position
in the two Northern Pennsylvania counties contiguous to Lycoming County as
well as in southeastern Lycoming County itself. Moreover, CBT has recently
moved its head office into Muncy, Lycoming County, which, under Pennsylvania
law will enable it to operate offices in a much broader geographic area. While
there are three banks in W illiamsport of comparable or larger size, CBT's
apparent efforts to serve new areas in north central Pennsylvania render it one
of the more likely future entrants into developing areas of Lycoming County,
including areas presently served by Union. The proposed merger would elim i
nate the possibility of future competition between the merging banks.
B a s is f o r C o rp o ra tio n

a p p ro v a l, O c to b e r 2 8 ,

1969

Commonwealth Bank and Trust Company, Muncy, Pennsylvania (Common
wealth), an insured nonmember bank with total deposits of $31,860,000, has
applied, pursuant to Section 18(c) and other provisions of the Federal Deposit
Insurance Act, for the Corporation’s prior approval to merge with The Union
National Bank of Jersey Shore, Jersey Shore, Pennsylvania (Union), which has
total deposits of $8,358,000. The banks would merge under the charter and
with the title of Commonwealth; and, as an incident to the merger, the sole
office of Union would become a branch of Commonwealth, increasing the
number of its offices to eight.
Competition. The service area of Commonwealth consists of portions of
three counties in north-central Pennsylvania. The combined population is
150,000. Union's service area consists of the Borough of Jersey Shore and the

FEDERAL DEPOSIT INSURANCE CORPORATION

104

immediate surrounding area (population 6,000). Both service areas enjoy a
healthy and diversified economy.
Commonwealth's main office in Muncy and Union’s main office in Jersey
Shore are approximately 30 miles apart within Lycoming County. There are a
number of banks in the intervening area, including the three largest banks in
the county, located in Williamsport. There is no overlap in the service areas of
the participating banks, no existing competition, and little potential for compe
tition. Commonwealth’s nearest branch, Hughesville, is 4 miles northeast of
Muncy and 34 miles east of Jersey Shore. Its remaining five branches, located
in Tioga and Potter Counties to the north, are considerably removed from all
of the above mentioned offices. Although each of the participating banks could
branch de novo into the communities served by the other, such action appears
remote in view of the small size of the communities and the presence of exist
ing banking offices serving their needs.
The resulting bank would be the fourth largest in the combined trade area,
with 13.3 percent of IPC deposits and 12.7 percent of loans. No effect on
competition is anticipated in the service area of Commonwealth. It is expected
that competition in Union’s service area will be stimulated.
The Board of Directors is of the opinion that the proposed merger would not
substantially lessen competition, tend to create a monopoly, or in any other
manner be in restraint of trade.
Financial and Managerial Resources and Future Prospects. Financial and
managerial resources are satisfactory with respect to both participating banks
and are so projected for the resulting bank. Future prospects of the resulting
bank are favorable.
Convenience and Needs of the Community to be Served. The proposed
transaction would have no significant effect in Commonwealth's present trade
area, with the exception of a slightly increased lending lim it. The resulting
bank should, however, be better able to serve the convenience and needs of
the service area of Union. Increased services available would include a full
range of fiduciary services, computer services, and a substantially larger lend
ing limit.
Based on the foregoing, the Board of Directors has concluded that approval
of the application is warranted.

No. 53
The Farmers State Bank of Spring Green
Spring Green, Wisconsin
(change title to Bank of Spring Green)
to consolidate with
State Bank of Spring Green
Spring Green

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B a n k in g O ffices
In
o p e ra tio n

8,585

2309

To be
o pe ra te d

S u m m a ry re p o r t by A tto r n e y G e n e ra l, S e p te m b e r 19, 1 9 6 9
The head offices of the merging banks are both located on the same block
in Spring Green. A comparison of individual accounts shows that a substantial
number of customers maintain accounts in both banks and a number of cus
tomers borrow from both banks. Therefore, it would appear that this merger
will eliminate substantial direct competition between the merging banks.

BANK ABSORPTIONS APPROVED BY THE CORPORATION

105

All offices of the merging banks are located in Sauk County. As of June 30,
1968, Farmers Bank held the fourth largest share, approximately 9.4 percent,
of total deposits in this county, while State Bank held about 2.2 percent of
such deposits. The resulting bank, with 11.6 percent of total county commer
cial bank deposits, will remain the county's fourth largest.
These concentration statistics, however, understate the competitive effects of
this merger, for competition between the merging banks would appear to be
most direct in Spring Green itself, where there are no commercial banking
alternatives. The only other bank within a radius of 15 miles of Spring Green
is smaller than either of the participating banks. The proposed merger would
combine the only competitive alternatives in Spring Green, and would tend to
deter the development of a more competitive commercial banking structure in
that community.
Since this merger would combine two direct competitors with a resulting
substantial share of the relevant local market, we believe that it would have a
serious effect on competition therein.
B a s is f o r C o rp o ra tio n

a p p ro v a l, O c to b e r 2 8 ,

1969

The Farmers State Bank of Spring Green, Spring Green, Wisconsin (Farm
ers), an insured nonmember bank with total resources of $8,585,000, has
applied, pursuant to Section 18(c) and other provisions of the Federal Deposit
Insurance Act, for the Corporation’s prior consent to consolidate with State
Bank of Spring Green, Spring Green, Wisconsin (State), a State member bank
with total resources of $2,300,000, under the charter of Farmers and with the
title “ Bank of Spring Green." The sole office of State is to be discontinued.
Competition. Spring Green, location of the main offices of both banks, is
located in Sauk County, Wisconsin, about 35 miles west of Madison. Spring
Green has an estimated population of 1,150, and the population of the trade
area is estimated at 4,500. Farmers has a branch office at Plain, 7 miles north
of Spring Green, which has an estimated population of 675. Spring Green is
primarily a trading center for the immediate surrounding area, which is com
pletely agricultural, with dairying the principal source of farm income. In
recent years, recreational facilities have become of some economic importance.
Among 14 banks presently competing in the area, Farmers ranks sixth and
State ranks 13th, the latter not significantly larger than the smallest bank. The
consolidation will increase Farmers’ rank to fifth, although it will be only
slightly smaller than the fourth-ranked bank. It will hold 10.3 percent of the
total IPC deposits among 13 remaining banks, as compared to 12.9 percent
for the largest bank and 10.4 percent for the fourth largest. The main offices
of Farmers and State are located in the same block, separated by two other
business establishments. A number of customers do business with both banks,
which serve essentially the same service area. State, however, has not been a
viable and effective competitor; historically, it has maintained an extremely low
loan-asset ratio— currently less than 22 percent— and has largely confined its
credit service to making real estate loans. A unit bank will be eliminated from
the scene in Spring Green and its office will be discontinued; however, the
town of Spring Green, standing alone, is hardly large enough to economically
support two banks. Within the surrounding area, there are numerous banks of
comparable size offering convenient alternative banking services.
The Board of Directors is of the opinion that the consolidation would not
substantially lessen competition, tend to create a monopoly, or in any other
manner be in restraint of trade.

FEDERAL DEPOSIT INSURANCE CORPORATION

106

Financial and Managerial Resources and Future Prospects. Financial
resources are satisfactory with respect to both participating banks and are so
projected for the resulting bank. Farmers is faced with a management problem
because its chief executive officer now is 83 years of age and no provision has
been made for a successor. However, one of the expected benefits of the con
solidation will be resolution of this problem. Earnings of State over the past
several years have been well below average; and, as a result of operating econ
omies which can be effected through the combined operation and elimination
of one location, future prospects appear more favorable.
Convenience and Needs of the Community to be Served. The discontinuance
of one office should cause no inconvenience to the public. The consolidation
will result in a bank more capable of providing additional banking programs
and services through enlarged and more modern facilities— all to the better
ment of the community. The resulting bank will have a larger lending lim it and
sufficient personnel to provide specialized services, more particularly in the
area of agricultural financing and consumer credit.
Based on the foregoing, the Board of Directors has concluded that approval
of the application is warranted.

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No. 54
Ocean Bank
Virginia Beach, Virginia
(in organization; change title to People’s
Bank of Virginia Beach)
to merge with
People's Bank of Virginia Beach
Virginia Beach

B a n k in g O ffices
In
o p e ra tio n

To be
o p e ra te d
1

100

6,995

a p p ro v a l,

N o v e m b e r 5,

1969

Pursuant to Sections 5 and 18(c) and other provisions of the Federal
Deposit Insurance Act, applications have been filed for Federal deposit insur
ance for Ocean Bank, Virginia Beach, Virginia, a proposed new bank in organi
zation, and for consent to merge with People's Bank of Virginia Beach, Vir
ginia Beach, Virginia (People’s), an insured nonmember operating bank.
People's operates one office and has total assets of $7.0 million. The resulting
bank will operate under Ocean Bank’s charter and with People's title.
The proposal involves the formation of a one-bank holding company which
will hold all the stock, except directors' qualifying shares, of the resulting
bank. Ocean Bank will not operate as a commercial bank prior to consumma
tion of the merger. It will begin business at the present location of People's
with the latter’s management, liabilities, assets, and capital essentially
unchanged. People’s has been in operation since January 1969, and its growth
during its brief history evidences a need for the bank. The proposal involves

BANK ABSORPTIONS APPROVED BY THE CORPORATION

107

only one operating bank and will not affect banking services or the service
area. It is simply a corporate reorganization and will have no effect on compe
tition. All factors requiring consideration relative to each application are found
to be favorable.
On the basis of the above information, the Board of Directors has concluded
that approval of the applications is warranted.

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No. 55

678,000

Bank of Hawaii
Honolulu, Hawaii
to acquire a portion of the assets
and assume the deposit liabilities of
Bank of American Samoa
Pago Pago, Tutuila, American Samoa

7,249

B a n k in g O ffices
In
o p e ra tio n

To be
o pe ra te d

60 4

S u m m a ry r e p o r t by A tto r n e y G e n e ra l, S e p te m b e r 2 5 , 1 9 6 9
The office of Bank of American Samoa is 2,600 miles from Bank of Hawaii’s
head office and branches in the Hawaiian Islands, and 2,200 miles from Bank
of Hawaii's nearest office in Kwajalein in the Marshall Islands. Since direct
competition between the two banks is virtually nonexistent, none will be elim i
nated as a result of the merger. Since the acquired bank is the only banking
institution on American Samoa, the proposed acquisition will also have no
effect on banking concentration on the island. Finally, in view of the limited
prospects for economic growth, there will be no significant elimination of
potential competition.
Under the circumstances it is our view that the proposed acquisition will
have no significant adverse competitive effect.
B a s is f o r C o rp o ra tio n

a p p ro v a l,

N o v e m b e r 13,

1969

Bank of Hawaii, Honolulu, Hawaii (Buyer), an insured State nonmember
bank with total deposits of $602.9 million, has applied, pursuant to Section
18(c) of the Federal Deposit Insurance Act, for the Corporation's prior consent
to acquire a portion of the assets of and assume liability to pay deposits made
in Bank of American Samoa, Pago Pago, American Samoa (Seller), a noninsured bank with total deposits of $4.9 million. The transaction would be
effected under the charter and with the title of Buyer; and, as an incident
thereto, the sole office of Seller would become a branch of the resulting bank.
Seller, the only bank in American Samoa, is 2,600 miles from the main
office of Buyer in Honolulu and 2,200 miles from the nearest branch. There is
virtually no competition between the participating banks, and there would be
no adverse competitive effects, in either area, resulting from consummation of
the proposed transaction.
The Board of Directors is of the opinion that this transaction would not tend
to lessen competition, tend to create a monopoly, or in any manner be in
restraint of trade.
The factors of financial and managerial resources, future prospects, and
convenience and needs of the community to be served are favorable with
respect to Buyer and the resulting bank. The future prospects of Seller, which

FEDERAL DEPOSIT INSURANCE CORPORATION

108

has experienced transitory management, and which has limited banking ser
vices, would be improved.
Based on the foregoing, the Board of Directors has concluded that approval
of the bank’s application is warranted.

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No. 56
Citizens Bank of South Carolina
Dillon, South Carolina
to merge with
Peoples Bank of Cheraw
Cheraw
and
Lake Banking Company
Lake View
and
Bank of Great Falls
Great Falls

B a n k in g O ffices
In
o p e ra tio n

23,520

4,957

2,226

3,919

To be
o p e ra te d
8

S u m m a ry re p o r t by A tto r n e y G e n e ra l, S e p te m b e r 19, 1 9 6 9
Falls Bank:
The closest offices of Citizens Bank are in Lancaster, fifteen miles north of
Great Falls. Although there are no banks in the intervening area, there are two
other commercial banks in Lancaster with total deposits of $18 million. As
there are few banking alternatives in a broad area surrounding Great Falls, and
no intervening banking alternatives between the closest offices of the merging
banks, there may be a limited amount of direct competition which would be
eliminated by the proposed merger.
South Carolina law permits statewide branch banking. Citizens Bank has
been engaged in a program of expansion in the northeastern region of South
Carolina since mid-1968. Great Falls has enjoyed a population increase of
approximately 30 percent in this decade and is located in an area that antici
pates continued industrial growth. These factors indicate that the proposed
merger may foreclose potential competition to some extent.
S e p te m b e r 2 4 , 1 9 6 9
Lake Bank:
Lake’s nearest competitor is currently Citizens Bank’s branch in Nichols,
located eight miles south of Lake View. The head office of Citizens Bank is in
the town of Dillon, 18 miles to the northwest. There are no banks in the inter
vening areas. Upon consummation of this merger, the only banking alterna
tives to Citizens Bank within twenty miles of Lake View will be the Dillon
branch of South Carolina National Bank; and Davis National Bank and Ander
son Brothers Bankers, both in Mullins, twelve miles to the southwest. It seems
clear that merging the only bank between Citizens Bank’s head office and its
Nichols branch into Citizens Bank’s chain will eliminate existing competition in
southeastern Dillon County and northeastern Marion County.
Lake's service area includes primarily the southeast portion of Dillon County
and the northeast part of Marion County. This area is served by four banks:

BANK ABSORPTIONS APPROVED BY THE CORPORATION

109

Lake, the applicant bank's branch in Nichols, and two banks in Mullins, Marion
County, twelve miles southwest of Lake View. Citizens Bank and Lake each
hold about 11 percent of commercial bank deposits in this area. The proposed
merger would reduce banking alternatives in this area from 4 to 3.
We note that the proposed merger, along with Citizens Bank’s two other
pending applications for merger with the Bank of Great Falls (Chester County)
and Peoples Bank of Cheraw (Chesterfield County) will, if approved, extend the
range of Citizens Bank's operation to six contiguous counties along South Car
olina’s northern border, and raise its total deposits to over $30 million, sub
stantially greater than any other locally headquartered bank in the area. Its
size and broad geographic coverage may enable Citizens Bank to compete with
the large statewide banks operating offices in the area for the business of
present and future large industrial customers. However, we consider it impor
tant that regional competitors such as Citizens Bank develop in a manner that
will not unduly increase concentration in any given local market, thus preserv
ing both competition at the local level and opportunity for entry by other
developing regional competitors. Applicant’s acquisition of Lake may adversely
affect the development of a more competitive banking structure in southeast
ern Dillon County and northeastern Marion County to match the area’s
expected industrial growth.
We conclude that the proposed merger would have an adverse effect on
competition.
Peoples-Cheraw:
The closest offices of the merging banks are 22 miles apart. Two banks in
the town of Bennettsville intervene between Peoples Bank in Cheraw and the
Clio branch of Citizens Bank. It appears that no substantial direct competition
will be eliminated by the proposed merger.
South Carolina law permits state-wide branch banking, but because of the
small and stable level of population and the existence of two established bank
ing offices in Cheraw, it is unlikely that Citizens Bank would branch de novo
into the area in the near future. There are presently six banks within a twelve
mile radius of Cheraw and the market would not appear to be economically
attractive for de novo entry by another bank at the present time. Therefore,
this merger will not eliminate substantial potential competition.
The banks seeking to merge do not presently compete nor can the applicant
bank be regarded as a probable entrant into the Cheraw market. Therefore, the
merger is unlikely to have a significantly adverse effect upon competition.
B a s is f o r C o rp o ra tio n

a p p ro v a l,

N o v e m b e r 13,

1969

Citizens Bank of South Carolina, Dillon, South Carolina (Applicant), an
insured State nonmember bank with total deposits of $21,138,000, has
applied, pursuant to Section 18(c) and other provisions of the Federal Deposit
Insurance Act, for the Corporation’s prior consent to merge, under its charter
and with its title, with Peoples Bank of Cheraw, Cheraw, Chesterfield County,
South Carolina (Peoples-Cheraw), an insured State nonmember bank with total
deposits of $4,171,000; Lake Banking Company, Lake View, Dillon County,
South Carolina (Lake Bank), an insured State nonmember bank with total
deposits of $2,033,000; and Bank of Great Falls, Great Falls, Chester County,
South Carolina (Falls Bank), an insured State nonmember bank with total
deposits of $3,426,000; and for consent to the establishment of the sole
offices of the latter three banks as branches of the resulting bank. The three
mergers would increase the number of Applicant’s offices to eight. Approval is

110

FEDERAL DEPOSIT INSURANCE CORPORATION

also requested for the retirement, at the option of the holders thereof, of the
5 percent convertible preferred stock to be issued in connection with the
merger with Falls Bank.
Competition. Applicant, headquartered in Dillon, operates two branches in
Lancaster and one each at Clio and Nichols. It is the fourth largest South Car
olina bank in overall size among the banks with offices in its several trade
areas. The mergers would not change that position. As a result of these merg
ers, it is believed that Applicant would become more competitive with its major
competitors, one of which is the largest bank in the State, operating a state
wide system of branches.
Peoples-Cheraw presently competes with two offices of the State's largest
bank and one branch of the State's third largest. In overall size, it is the
smallest among six banks competing in its service area, and the merger
should increase its competitive ability with these other five banks. There is
some common ownership and management between Applicant and PeoplesCheraw, which was created in May 1968. Their nearest offices are 24 miles
apart, and there is no significant amount of actual or potential competition
which would be eliminated.
Lake Bank presently competes with one office of the State's largest bank,
one office of North Carolina’s third largest bank, two offices of Applicant, and
two much larger independent banks located in Mullins. It is by far the smallest
bank in its service area; and, as a branch of Applicant, its competitive stature
with the other four banks would be significantly increased. Lake View is
located between Dillon and Nichols (locations of the main office and one
branch of Applicant); however, the competition which will be eliminated does
not loom large because there has been common ownership between Applicant
and Lake Bank since 1960.
The closest competing banks to Falls Bank are those in Lancaster, including
the two branches of Applicant. Falls Bank is much smaller than Applicant and
one other Lancaster-based bank. Applicant’s Lancaster branches hold only
about one-fourth the volume held by the other Lancaster bank and, combined
with Falls Bank, the relationship is less than one-half. Lancaster and Great
Falls are 15 miles apart, and the amount of competition which would be elim i
nated is not significant. The public still would have several banking alternatives
available.
Because of the distances involved, there is no competition among and
between Peoples-Cheraw, Lake Bank, and Falls Bank which would be elim i
nated. Although South Carolina statutes permit statewide branching, none of
the merging banks have evidenced a desire to broaden their operations by de
novo branching; and, because of the small size of the banks and the com m uni
ties they serve, it is unlikely that either of the banks would establish de novo
branches in the area of the other. Thus, the potential for competition is not
significant.
The Board of Directors is of the opinion that the proposed mergers would
not substantially lessen competition, tend to create a monopoly, or in any
other manner be in restraint of trade.
Financial and Managerial Resources and Future Prospects. These factors are
resolved in favor of the proposals.
Convenience and Needs of the Community to be Served. The proposed
transactions would have no appreciable effect in Applicant's present trade
areas, but they would enable the resulting bank to better serve the conveni
ence and needs in the trade areas of the other three banks. The number and
location of banking offices would not be changed. The mergers would result in

BANK ABSORPTIONS APPROVED BY THE CORPORATION

111

an increased lending lim it at the various locations and a wider range of
enlarged banking services in general.
Based on the foregoing information, the Board of Directors has concluded
that approval of the applications is warranted.

Resources
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thousands
of dollars)

No. 57
The First National Bank of Anchorage
Anchorage, Alaska
to acquire the assets and assume
the deposit liabilities of
The First Bank of Valdez
Valdez

B anking Offices
In
operation

117,081

1,201

To be
operated

S u m m a ry r e p o r t b y A tto r n e y G e n e ra l, N o v e m b e r 17, 1 9 6 9
The merging banks' main offices are 305 road miles apart, and their closest
offices are approximately 290 miles apart; there are two intervening banking
offices. However, 44 Valdez customers carry $276,000 in deposits with First
National, equal to about 25 percent of First Bank of Valdez' total deposits.
Therefore, the merger would eliminate some existing competition between the
merging banks.
Commercial banking in Alaska is highly concentrated. Eleven banks operate
66 banking offices; the proposed merger would reduce the number of Alaskan
banks to ten. As of June 30, 1968, Alaska's two largest banks held 58.1 per
cent of total state deposits; National Bank of Alaska, headquartered in Anchor
age, held 30.7 percent, and First National held 27.4 percent. These two banks
also operate about half of the banking offices in the state.
Alaska law permits statewide de novo branching, and, thus, First National
could legally branch de novo into the area served by First Bank of Valdez.
Since January 1, 1952, First National has acquired three other banks and
established six de novo offices. It was twice denied permission to enter the
oil-rich Kenai Peninsula, and once denied permission to branch into Fairbanks,
another oil oriented community. According to the Application, First National
must actively service the oil industry if First National is to continue to prosper,
and entry into Valdez will give it that opportunity.
Hence, First National, which has a demonstrated inclination to expand into
new areas of Alaska, and a special interest in servicing the oil industry,
appears to be one of the two most likely de novo entrants into the Valdez
area.
This merger will, therefore, eliminate existing competition between these
banks in Valdez, remove one of the most likely de novo potential entrants into
the market, and tend to entrench the existing dominant banks in Alaska by
eliminating a small bank which could have served as a foothold entry in this
market for smaller banks elsewhere in the state. For these reasons, we believe
that this merger will have an adverse effect on competition.
B a s is f o r C o rp o ra tio n

a p p ro v a l,

N ovem ber 21,

1969

The First National Bank of Anchorage, Anchorage, Alaska (Applicant), with
total deposits of $105.8 million, has applied, pursuant to Section 18(c) of the
Federal Deposit Insurance Act, for the Corporation’s prior consent to acquire

112

FEDERAL DEPOSIT INSURANCE CORPORATION

the assets of and assume liability to pay deposits made in The First Bank of
Valdez, Valdez, Alaska (Other Bank), a noninsured bank with total deposits of
$1.1 million.
Competition. The nearest offices of the participating banks are some 300
road miles distant, and their trade areas are separate and distinct. Competition
between Other Bank and any other financial institution in Alaska is virtually
nonexistent. Nearest banking offices are 120 road miles north and 90 air miles
southeast, the latter being accessible only by air and by ferry.
Applicant, the second largest bank in Alaska, would increase its share of
deposits and loans by approximately 0.2 percent. The proposal would have no
competitive effect in Applicant's trade area, and whereas there is virtually no
competition in the trade area of Other Bank, none would be eliminated.
The Board of Directors is of the opinion that this transaction would not tend
to lessen competition, tend to create a monopoly, or in any manner be in
restraint of trade.
Financial and Managerial Resources and Future Prospects. Financial and
managerial resources and future prospects are favorable with respect to Appli
cant and the resulting bank. The future prospects of Other Bank, which is
experiencing unfavorable operating results, would be improved as a branch of
Applicant.
Convenience and Needs of the Community to be Served. Present and poten
tial customers in the area of Other Bank would benefit through the increased
financial resources, generally expanded services, and more sophisticated man
agement that would be supplied by the resulting bank.
On the basis of the above information, the Board of Directors has concluded
that approval of the bank’s application is warranted.

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No. 58
The Millikin National Bank of Decatur
Decatur, Illinois
to merge with
The Millikin Trust Company
Decatur

B a n k in g O ffices
In
o p e ra tio n

84,238

1,222

To be
o p e ra te d

S u m m a ry r e p o r t b y A tto r n e y G e n e ra l, N o v e m b e r 4 , 1 9 6 9
Because Millikin Bank's operations are restricted to commercial banking
without exercise of trust powers and Trust Company handles only fiduciary
accounts, the proposed merger would not affect existing competition.
No adverse effects on potential competition are likely either. When Trust
Company was organized, national banks were not permitted to engage in trust
business. Since revision of the law, most banks in Illinois have merged with
the corporations they originally established to handle fiduciary accounts. Trust
Company is one of the last state banks exercising only trust powers in Illinois.
Because operations at Trust Company are so closely tied-in with those of M illi
kin Bank (both occupy the same building and utilize the same computer), the
possibilities of either expanding into the other’s field of activity are remote.
Moreover, 55 percent of the shares of each institution are owned and con
trolled by the trustees of a charitable trust established by the founder.

BANK ABSORPTIONS APPROVED BY THE CORPORATION

113

In view of the long-standing common control of application banks and the
interrelationships of their distinct operations, we conclude that the proposed
merger would not be likely to have any significant adverse effects on competi
tion.
B a s is f o r C o rp o ra tio n a p p ro v a l, N o v e m b e r 2 1 , 1 9 6 9
The Millikin National Bank of Decatur, Decatur, Illinois (Applicant), with
total deposits of $74,609,000, has applied, pursuant to Section 18(c) of the
Federal Deposit Insurance Act, for the Corporation’s prior consent to merge
with The Millikin Trust Company, Decatur, Illinois (Trust Company), an operat
ing noninsured institution with deposits totaling $741,000, under the charter
and with the title of Applicant.
Trust Company was formed in 1915, by the owners of Applicant, to afford
trust services, which at the time national banks were not permitted to offer.
Ownership of 55 percent of the outstanding stock in each institution is held by
the same estate, and five of Trust Company's nine directors are also directors
of Applicant. Both Applicant and Trust Company occupy the same building,
and their merger would not have adverse effects upon competition nor upon
the convenience and needs of the community. The merger should permit more
efficient and economical provision of complete banking service and end confu
sion caused by two separate institutions with sim ilar names.
The Board of Directors is of the opinion that this transaction would not
lessen competition, tend to create a monopoly, or in any other manner be in
restraint of trade.
The factors of financial and managerial resources, future prospects, and
convenience and needs of the community to be served are favorable with
respect to Applicant and Trust Company and are so projected for the resulting
bank.
Based on the foregoing, the Board of Directors has concluded that approval
of the application is warranted.

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No. 59
Bank of Somerset
Princess Anne, Maryland
to merge with
Marine Bank of Crisfield
Crisfield

B a n k in g O ffices
In
o p e ra tio n

12,7 77

4,155

To be
o p e ra te d

S u m m a ry re p o r t b y A tto r n e y G e n e ra l, O c to b e r 2 1 , 1 9 6 9
The applicant banks compete with one another in part of the sparsely popu
lated rural area between the towns of Crisfield and Princess Anne, which are
20 miles apart. The Bank of Somerset has also received approval to open in
late 1969 a branch in Crisfield to be known as the Wards Crossing office; it
would serve much of the same area that the Marine Bank of Crisfield presently
serves. The merger would, therefore, appear to eliminate some existing compe
tition between the applicants and the future competition that would have other
wise developed between the Marine Bank of Crisfield and the Wards Crossing
branch of the Bank of Somerset.

114

FEDERAL DEPOSIT INSURANCE CORPORATION

The proposed merger would combine two of the three banks operating in
Somerset County. The resulting bank would be larger than its remaining com
petitor.
Since the merger will eliminate actual and potential competition between the
merging banks and will increase banking concentration in Somerset County, it
will have an adverse effect on competition.
B a s is fo r C o rp o ra tio n

a p p ro v a l,

N ovem ber 21,

1969

Bank of Somerset, Princess Anne, Maryland (Somerset), an insured non
member bank with total resources of $12,777,000, has applied, pursuant to
Section 18(c) and other provisions of the Federal Deposit Insurance Act, for
the Corporation’s prior consent to merge with Marine Bank of Crisfield, Crisfield, Maryland (Marine), an insured nonmember bank with total resources of
$4,155,000, under Somerset's charter and with its title and, incident thereto,
to establish a branch at the sole location of Marine.
Competition. Princess Anne and Crisfield are the principal towns in Somerset
County, which is located on the Chesapeake Bay side of the southernmost part
of the Maryland section of the Delmarva Peninsula. Princess Anne, with a pop
ulation of 1,350, is the county seat, and the surrounding area is agricultural.
Crisfield, with a population of 3,500, is a fishing port on the Chesapeake Bay,
18 miles southwest of Princess Anne.
Somerset is the only bank in Princess Anne; and its principal competition
emanates from eight branches, in Salisbury and Pocomoke City, of the State's
two largest banks, which operate branch systems throughout most of the
State, and two Salisbury offices of the State's fifth largest bank— all headquar
tered in the city of Baltimore. Marine faces its major competition from Bank of
Crisfield, which traditionally has dominated the banking scene there and which
is a subsidiary of Financial General Corporation, a registered bank holding
company. Somerset and Bank of Crisfield are about equal in size and Marine
is only about one-third the size of each. The main offices of Marine and Bank
of Crisfield are two doors apart; and the latter operates an “ uptown branch"
and a branch in Marion which intervenes Crisfield and Princess Anne. Somer
set has approval for an unopened branch in Crisfield, which it plans to estab
lish as a drive-in facility simultaneously with the merger. Crisfield does not
now have such facilities, and the merger and simultaneous establishment of
the branch should tend to substantially increase competition locally in Crisfield
and the surrounding area. Among all banks competing in the area (eight, fo l
lowing the merger), the resulting bank will hold 12.5 percent of total deposits,
as compared to 9.7 percent for Bank of Crisfield and 62.8 percent fo r the Bal
timore-based banks.
The Board of Directors is of the opinion that the merger would not substan
tially lessen competition, tend to create a monopoly, or in any other manner
be in restraint of trade.
Financial and Managerial Resources and Future Prospects. Financial
resources and future prospects are favorable for this proposal. The merger
appears to be the most logical solution to an impending management problem
in Marine.
Convenience and Needs of the Community to be Served. Over the past
decade or so, management of Marine has been unaggressive, permitting the
local competing bank to overshadow Marine in almost every respect. The com
peting bank has established two branches to better serve the community;
Marine has established none and has not modernized its operations or empha
sized consumer loans. Somerset plans to market its consumer lending services

BANK ABSORPTIONS APPROVED BY THE CORPORATION

115

aggressively in Crisfield and will introduce drive-in facilities in the community
through the simultaneous establishment of a branch. Moreover, Marine's loan
lim it of $25,000 has been restrictive.
The availability of improved and expanded loan services and drive-in facili
ties should prove beneficial to the public.
Based on the foregoing, the Board of Directors has concluded that approval
of the application is warranted.

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No. 60
Franklin State Bank
Somerset, New Jersey
to merge with
First National Bank of Scotch Plains
Scotch Plains

B a n k in g O ffices
In
o p e ra tio n

47,779

17,934

To be
o pe ra te d

S u m m a ry re p o r t by A tto r n e y G e n e ra l, O c to b e r 6, 1 9 6 9
Various branches of the two banks are located at distances of about 10 to
12 miles from each other. Numerous offices of other commercial banks are
located in the intervening areas. It would appear that the proposed merger
would not eliminate a substantial amount of direct competition.
Under New Jersey law, Franklin Bank and Scotch Plains Bank may be per
mitted to open branch offices anywhere in the Second Banking District of New
Jersey, except in communities subject to home or branch office protection.
Since the respective service areas of the merging banks in Somerset and
Union Counties are relatively highly developed, many of the communities there
are already protected; therefore, the possibility of future competition between
the merging banks through de novo branching into areas served by each other
is accordingly limited. Moreover, Scotch Plains Bank is the smallest bank in its
service area. Accordingly, we conclude that the proposed merger would be
unlikely to have any significant adverse effect on potential competition.
B a s is f o r C o rp o ra tio n

a p p ro v a l,

N ovem ber 21,

1969

Franklin State Bank, Franklin Township (P.O. Somerset), New Jersey (Appli
cant), an insured State nonmember bank with total deposits of $38,749,000,
has applied, pursuant to Section 18(c) and other provisions of the Federal
Deposit Insurance Act, for the Corporation's approval to merge with First
National Bank of Scotch Plains, Scotch Plains, New Jersey (National), which
has total deposits of $14,453,000. The resulting bank will operate under the
charter and with the title of Applicant; and, as an incident to the proposed
merger, the two existing offices of National would become branches of Appli
cant, increasing the number of its existing offices to seven and its approved
but unopened branches to four.
Competition. Applicant’s present offices are all located in Somerset County
(1968 estimated population 199,000), which is situated in north-central New
Jersey. Both of National's offices are located in Union County (estimated 1968
population 575,000), which is in the northern portion of New Jersey and well
within the Newark-New York City metropolitan area.

116

FEDERAL DEPOSIT INSURANCE CORPORATION

There is virtually no competition to be eliminated between the participating
banks. Their service areas are separate and distinct and do not overlap. Their
main offices are about 12 miles apart and are intervened by other municipali
ties containing numerous competing bank offices. Applicant's approved but
unopened branch in Middlesex is about 7 miles from National’s offices and is
similarly intervened by competing bank offices. Each of the participating banks
is faced with substantial competition from other much larger banks. In addi
tion, the proximity of the service areas to Newark and New York City makes
the area attractive to very large banks located in those cities.
In view of the relatively small size of the participating banks, the extent of
their present branching activity, and the home office protection feature of the
New Jersey banking law, it does not seem likely that they would become com
petitive in the reasonably near future.
Consummation of this proposal would have no appreciable effect on banking
competition. The resulting bank would have 11 of the 41 commercial banking
offices in its area and would have 11.9 percent of the IPC deposits. There are
19 other commercial banks operating offices in this service area, and 11 of
these are larger than the resulting bank. Four are more than twice its size.
The Board of Directors is of the opinion that the proposed transaction would
not substantially lessen competition, tend to create a monopoly, or in any
other manner be in restraint of trade.
Financial and Managerial Resources and Future Prospects. These factors are
acceptable with respect to both participating banks and for the resulting bank.
Convenience and Needs of the Community to be Served. The higher lending
lim it of the resulting bank will allow it to serve more corporate customers in
the community, and the extended banking hours would allow everyone in the
service area to bank in his own community without disrupting his regular
schedule. In addition, the service area would have another larger bank provid
ing a convenient alternative to other competitors.
Based on the foregoing, the Board of Directors has concluded that approval
of the application is warranted.

No. 61
Central Carolina Bank & Trust Company
Durham, North Carolina
to merge with
Bank of Pittsboro
Pittsboro

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B a n k in g O ffices
In
o p e ra tio n

145,296

6,435

To be
o pe ra te d

S u m m a ry re p o r t by A tto r n e y G e n e ra l, S e p te m b e r 2 4 , 1 9 6 9
Pittsboro Bank’s head office is 15 miles southwest of Central Bank’s three
branches in Chapel Hill, Orange County; the only intervening banking office is
also situated in Orange County, some 13 miles from Pittsboro. Pittsboro
Bank’s Moncure branch is 15 miles west of Central Bank's branch in Apex,
Wake County; no banking alternatives intervene. The only banking alternatives
available in Chatham County are in Siler City (population 4,455), 16 miles
west of Pittsboro and 24 miles northwest of Moncure, where three branches of

BANK ABSORPTIONS APPROVED BY THE CORPORATION

117

First Union National Bank of North Carolina (total deposits $827.2 m illion),
and a single branch of the Planters National Bank and Trust Company (total
deposits $101.9 million) are situated. In view of the lack of significant inter
vening banking alternatives between offices of the merging banks, the pro
posed merger may eliminate some amount of direct competition.
Since North Carolina law permits statewide branching, the merger would
eliminate potential competition for both loans and deposits by eliminating Cen
tral Bank as one of the most likely de novo entrants into the Pittsboro-Moncure area or into the eastern half of Chatham County.
Central Bank has demonstrated an aggressive policy of expansion by open
ing de novo offices as well as merging with banks in areas not previously
served. The great majority of its new offices have been located in its home
Durham County and in counties contiguous or very near thereto. While present
population and economic activity in the areas served by Pittsboro bank are rel
atively small, planned industrial activity and resulting demographic growth
should make these areas most attractive to de novo entry in the near future.
Pittsboro Bank’s essential monopoly of commercial banking in eastern
Chatham County would be particularly conducive to de novo entry by Central
Bank.
In view of Central Bank's substantial position in counties adjoining Chatham
County and the likelihood of its de novo entry into the Pittsboro-Moncure ser
vice areas of Pittsboro Bank, as well as its present position on the outskirts of
this service area, we conclude that the proposed merger would have an
adverse effect on potential competition.
B a s is fo r C o rp o ra tio n

a p p ro v a l,

N ovem ber 21,

1969

Central Carolina Bank & Trust Company, Durham, North Carolina (Central),
an insured nonmember bank with total resources of $145 million, has applied,
pursuant to Section 18(c) and other provisions of the Federal Deposit Insur
ance Act, for the Corporation’s prior consent to merge with Bank of Pittsboro,
Pittsboro, North Carolina (Pittsboro Bank), an insured nonmember bank with
total resources of $6.4 million, under the charter and with the title of Central
and, incident thereto, to establish branches at the two existing locations of
Pittsboro Bank in Pittsboro and the village of Moncure, North Carolina.
Competition. Central, operating 28 branches, is a regional bank offering a
complete range of banking services. All but four of its offices are located
within a 55-mile radius of Durham which, together with Chapel Hill and
Research Triangle Park, comprises the principal market area. The Durham area
is heavily industrialized; and, through the Research Triangle Park, research
development has become an important economic activity, spearheaded by the
State’s three major universities which are located in the area. Agriculture con
tinues to be an important segment of the economy, based primarily on
tobacco and tobacco products. Pittsboro is located about 31 miles southwest
of Durham, and the nearest branch locations of Central to an office of Pitts
boro Bank are in Chapel Hill, about 16 miles northeast of Pittsboro. Pittsboro
Bank is the only bank in Pittsboro and Moncure, and it serves a limited local
area where agriculture is of major economic importance, although industry is
gradually being introduced into the area.
There is no overlapping of the service areas of Central and Pittsboro Bank
because neither bank derives business from the service area of the other, and
there are no known instances of deposit and loan customers using the fa cili
ties of both banks. Central, ranking eighth in size among all North Carolina
banks, competes with offices of the 10 largest banks. It is much smaller than

118

FEDERAL DEPOSIT INSURANCE CORPORATION

most of its major competitors, holding 2.7 percent of total deposits held by all
banks competing in the service areas relevant to this proposal, as compared to
28.2 percent held by the largest bank and 23.6 percent held by the second
largest. The merger will increase Central’s share by only 0.1 percent, and its
ranking as eighth largest bank will not be changed. In view of the recent
approval of a branch in Pittsboro for the State’s fourth largest bank, the entry
there of Central by way of this merger should result in substantially increased
competition.
The Board of Directors is of the opinion that the merger will not substan
tially lessen competition, tend to create a monopoly, or in any other manner
be in restraint of trade.
Financial and Managerial Resources and Future Prospects. These factors are
satisfactory with respect to both participating banks and are so projected for
the resulting bank.
Convenience and Needs of the Community to be Served. Pittsboro Bank,
because of its limited resources, is unable to provide a full range of banking
services. As a result of the merger, the Pittsboro area would gain the advan
tage of a regional bank which provides all types of banking facilities on a
much larger and broader scale. These improved services include tru st depart
ment facilities, full-range instalment loan services, credit cards, automation
through a bank-owned computer system, and the services of an agricultural
specialist. Through these improved services, the convenience and needs of the
community would be better served.
Based on the foregoing, the Board of Directors has concluded that approval
of the application is warranted.

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No. 62
Southern Bank and Trust Company
Mount Olive, North Carolina
to merge with
Roanoke Chowan Bank
Roxobel

B a n k in g O ffices
In
o p e ra tio n

13,967

3,020

To be
ope ra te d

S u m m a ry re p o r t b y A tto r n e y G e n e ra l, S e p te m b e r 2 2 , 1 9 6 9
The merging banks’ main offices are 121 miles apart, and their closest
offices are approximately 60 miles apart, there are several intervening bank
ing offices. At present, no competition exists between the merging banks.
Southern Bank has, however, secured approval to open a de novo branch
office in Windsor, seat of Bertie County, some 23 miles southeast of Roxobel.
While this office will be substantially closer to Roanoke Chowan Bank than any
of Southern Bank’s other offices, the size of the banks, the distance involved
in this rural area, and the presence of an intervening banking office in Lewis
ton indicate that the proposed merger is unlikely to have a significantly
adverse effect on potential competition.
B a s is f o r C o rp o ra tio n

a p p ro v a l,

N ovem ber 21,

1969

Southern Bank and Trust Company, Mount Olive, North Carolina (Southern),
an insured State nonmember bank with total deposits of $12,686,000, has

BANK ABSORPTIONS APPROVED BY THE CORPORATION

119

applied, pursuant to Section 18(c) and other provisions of the Federal Deposit
Insurance Act, for the Corporation's prior approval to merge with Roanoke
Chowan Bank, Roxobel, North Carolina (Roanoke), which has total deposits of
$2,566,000. The banks would merge under the charter and with the title of
Southern; and, as an incident to the merger, the one office of Roanoke would
become a branch of Southern, increasing the number of its offices to nine.
Approval is also requested for the conversion, at the option of the holders
thereof, of the cumulative convertible preferred stock to be issued in connec
tion with this proposed transaction, into common stock of the resulting bank.
Competition. Southern operates two offices in Mount Olive (population
4,700) and six other offices in nearby communities. The trade area served by
Southern is predominately agricultural. The trade area served by Roanoke,
which is the town of Roxobel (population 500) and the area within a 10-mile
radius of Roxobel, is also primarily agricultural.
Mount Olive is 120 miles southwest of Roxobel, and the shortest distance
between offices of the participating banks is the 80 miles between Roxobel and
Southern’s office in Ayden. The trade areas served by Southern and Roanoke
do not overlap and there are numerous other banking offices in the intervening
area. There is no direct competition which would be eliminated by this pro
posed merger.
Southern has the necessary approvals to establish a de novo branch in
Windsor, North Carolina, which is 23 miles southeast of Roxobel. Windsor is
beyond the trade area served by Roanoke, and there is a commercial banking
office of a Gatesville-based bank at Lewiston, which is located between Roxobel
and Windsor. Legally, either of the participating banks could establish de novo
branches in the other bank's trade area, but in view of its relatively small size
it is not likely that Roanoke would branch de novo into Southern's trade area.
The town of Roxobel is quite small, and it is also unlikely that Southern would
seek to establish a de novo branch at that location.
All of the other banks operating in the trade area served by Southern are
much larger than the resulting bank would be, and in the trade area served by
Roanoke there is an office of the largest bank in the State of North Carolina.
Consummation of this proposal would enable the resulting bank to compete
more effectively with the much larger banks operating in the relevant trade
area.
The Board of Directors is of the opinion that the merger would not substan
tially lessen competition, tend to create a monopoly, or in any other manner
be in restraint of trade.
Financial and Managerial Resources. Financial and managerial resources are
adequate with respect to both participating banks and are so projected for the
resulting bank.
Future Prospects. Southern has been a much more aggressive competitor
than Roanoke and has grown much faster. The future prospects of Roanoke,
as a part of the resulting bank, would be enhanced; and the future prospects
of the resulting bank are favorable.
Convenience and Needs of the Community to be Served. This proposed
merger would have no significant effect in the trade area served by Southern,
but it would improve the quantity and quality of banking services in the Roxo
bel area.
Based on the foregoing information, the Board of Directors has concluded
that approval of the application is warranted.

FEDERAL DEPOSIT INSURANCE CORPORATION

120

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No. 63
The Northwestern Bank
North Wilkesboro, North Carolina
to merge with
Lenoir Industrial Bank, Inc.
Lenoir

B a n k in g O ffices
In
o p e ra tio n

460,365

343

To be
o p e ra te d

S u m m a ry re p o r t by A tto r n e y G e n e ra l, O c to b e r 6, 1 9 6 9
The proposal would merge Northwestern Bank, North Carolina's fifth largest
commercial banking institution, and Lenoir Industrial Bank, Inc., operating in
Lenoir, North Carolina.
Northwestern has no Caldwell County office, but it operates branches in the
communities of Drexel, Morganton, Hickory, and Valdese, all of which are
about 18 miles south of Lenoir. Only one bank operates in the intervening
area, and the application indicates that Northwestern draws a substantial
amount of business from the Lenoir area. It appears, therefore, that some
competition exists between Lenoir Bank and Northwestern Bank. Since its
founding, Lenoir Bank apparently has not been a vigorous institution and has
never utilized many of the powers of a commercial bank. However, it is clear
that it is in competition with Northwestern bank; this competition, of course,
will be permanently eliminated by the proposed merger.
Three banks, with total deposits of about $35.1 million, operate offices in
Caldwell County. Lenoir Bank, by far the smallest, has about 0.4 percent of
this total, all in time and savings deposits. Northwestern's share of deposit
and loan accounts originating in Caldwell county will not be substantially
increased by the proposed merger. In view of Lenoir Bank's small size, we are
of the opinion that its acquisition by Northwestern will not seriously affect
competition.
B a s is f o r C o rp o ra tio n a p p ro v a l, N o v e m b e r 2 1 , 1 9 6 9
The Northwestern Bank, North Wilkesboro, North Carolina (Northwestern),
an insured State nonmember bank with total deposits of $405,089,000, has
applied, pursuant to Section 18(c) and other provisions of the Federal Deposit
Insurance Act, for the Corporation’s prior approval to merge with Lenoir
Industrial Bank, Inc., Lenoir, North Carolina (Industrial), with total deposits of
$166,000. The transaction would be effected under the charter and with the
title of Northwestern; and, as an incident thereto, the sole office of Industrial
would become a branch of Northwestern.
Competition. Northwestern operates 96 offices throughout central and west
ern North Carolina, and its trade area encompasses approximately one-half of
the State. Industrial's sole office is located in Lenoir, and its trade area is con
fined to that city and the immediate surrounding area in Caldwell County, with
a population of approximately 30,000. Both trade areas enjoy a healthy and
diversified economy.
The nearest offices of the participating banks are approximately 18 miles
apart. Northwestern reportedly does a substantial amount of business in Cald
well County. It appears, therefore, that some competition would be eliminated
upon consummation of the merger. This, however, is not considered significant

BANK ABSORPTIONS APPROVED BY THE CORPORATION

121

in view of the size of Industrial, its unaggressiveness, and its limited range of
services.
The position of Northwestern as fifth largest bank in the State would remain
unchanged. No effect on competition is anticipated in the service area of
Northwestern. Competition in the service area of Industrial would be increased.
The Board of Directors is of the opinion that the proposed merger would not
substantially lessen competition, tend to create a monopoly, or in any manner
be in restraint of trade.
Financial and Managerial Resources and Future Prospects. Financial and
managerial resources are satisfactory with respect to both participating banks
and are so projected for the resulting bank. Future prospects of the resulting
bank are favorable.
Convenience and Needs of the Community to be Served. The proposed
transaction would have no effect in Northwestern’s present trade area. Present
and potential customers in Industrial’s area would benefit through the
increased financial resources and expanded services available through the
resulting bank.
On the basis of the above information, the Board of Directors has concluded
that approval of the bank’s application is warranted.

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No. 64
The Reedsburg Bank
Reedsburg, Wisconsin
to acquire the assets and assume
the deposit liabilities of
Bank of North Freedom
North Freedom
and
The State Bank of Lime Ridge
Lime Ridge

B a n k in g O ffices
In
o p e ra tio n

15,414

2,050

1,112

To be
o pe ra te d

S u m m a ry re p o r t by A tto r n e y G e n e ra l, S e p te m b e r 2 2 , 1 9 6 9
The parties to the proposed transaction operate banking offices 12 miles
apart. One bank operates an office in the intervening community of Rock
Springs. The application indicates that banks located in Reedsburg, Baraboo,
Rock Springs and Wisconsin Dells all compete for deposits and loan accounts
in the vicinity of North Freedom. Thus, the proposed merger would apparently
eliminate existing competition between Reedsburg Bank and North Freedom
Bank.
Reedsburg Bank presently holds about 16 percent of total deposits in com
mercial banks in Sauk County. The proposed transaction would increase this
share by about 2 percent. Reedsburg Bank would retain its position as the
second largest bank in the county.
O c to b e r 6, 1 9 6 9 (T h e S ta te B a n k o f L im e R id g e )
The parties to the proposed transaction operate banking offices 12 miles
apart. There are no intervening banking alternatives. However, the long estab

122

FEDERAL DEPOSIT INSURANCE CORPORATION

lished common ownership and management (which has existed since 1961)
indicate that the proposed transaction is unlikely to have a significantly
adverse effect on competition.
B a s is f o r C o rp o ra tio n a p p ro v a l, N o v e m b e r 2 1 , 1 9 6 9
The Reedsburg Bank, Reedsburg, Wisconsin (Applicant), an insured State
nonmember bank with total deposits of $14,283,400, has applied, pursuant to
Section 18(c) of the Federal Deposit Insurance Act, for the Corporation’s prior
approval to acquire the assets of and assume the liability for deposits made in
Bank of North Freedom, North Freedom, Wisconsin (First Bank), an insured
State nonmember bank with total deposits of $1,901,500, and The State Bank
of Lime Ridge, Lime Ridge, Wisconsin (Second Bank), an insured State non
member bank with total deposits of $991,200. Upon consummation of these
proposed transactions First Bank and Second Bank would cease to operate.
The State Attorney General has ruled that a bank may not file an application
for permission to establish a branch unless the community in which the
branch is to be located is “ bankless.” As soon as these proposed transactions
are consummated, Applicant intends to immediately file the necessary applica
tions for permission to establish branches in North Freedom and Lime Ridge.
Competition. Applicant operates only one office in Reedsburg (population
5,000), and First Bank operates only one office in North Freedom (population
600), which is 12 miles southeast of Reedsburg. Located in the intervening
area is a unit bank at Rock Springs; and there is very little, if any, direct com
petition between Applicant and First Bank.
Second Bank operates one office at Lime Ridge (population 150), which is
12 miles southwest of Reedsburg. Since 1961, two officers of Applicant have
owned and managed Second Bank. It has been operated more like a branch of
Applicant than as an independent unit, and there is no significant amount of
direct competition between Applicant and Second Bank.
Due to the nature of the trade areas served by the participating banks, and
the restrictive State laws governing the establishment of de novo branches,
there is no potential competition which would be eliminated by these proposed
transactions.
Applicant is the second largest bank in the relevant trade area, and these
proposed transactions would not change that position. In addition to the par
ticipating banks, there are six other banks operating nine offices in the rele
vant trade area. Applicant's primary competitor is Farmers and Merchants
Bank, Reedsburg, Wisconsin, which has IPC deposits of over $11 million and
operates one branch at Loganville, which is south of Reedsburg, between Lime
Ridge and North Freedom.
The Board of Directors is of the opinion that the proposed transactions
would not substantially lessen competition, tend to create a monopoly, or in
any manner be in restraint of trade.
Financial Resources. First Bank and Second Bank have not grown as fast as
Applicant, but the resulting bank would have adequate financial resources.
Managerial Resources. First Bank has only two active employees who also
own control of the bank. These two individuals, who hold the titles of presi
dent and cashier, have served the bank for over 40 years and would like to
retire, but they have not been able to acquire successor management. The
acquisition of First Bank by Applicant would solve the problem of management
succession at First Bank.
Since 1961, Second Bank has been operated by two employees, and man
agement has been provided by the two officers of Applicant who own control

BANK ABSORPTIONS APPROVED BY THE CORPORATION

123

of Second Bank. Second Bank is so small that its earnings are not sufficient to
pay the salary of a qualified chief executive officer. The acquisition of Second
Bank by Applicant would merely formalize a situation which has existed since
1961.
Future Prospects. In view of the nature of the trade areas served by First
Bank and Second Bank, the management problems, and the earnings, the
future prospects of these two banks as independent units are not favorable.
Future prospects are better for the resulting bank than they are fo r the partici
pating banks operating as independent units.
Convenience and Needs of the Community to be Served. These proposed
transactions would have no appreciable effect in the Reedsburg area. Tempo
rarily at least, consummation of these proposed transactions would inconveni
ence the customers of First Bank and Second Bank since the two communities
would be without banking facilities fo r a short period of time. Absent these
proposed transactions, the controlling shareholders of both First Bank and
Second Bank state that they will liquidate the two banks, which would leave
the communities without banking facilities. In the short run, these proposed
transactions would inconvenience the customers of First Bank and Second
Bank, but in the long run, it would benefit the communities of North Freedom
and Lime Ridge by providing them with banking facilities offering a wider
range of services and a progressive management responsive to the needs of
the communities it serves.
Based on the foregoing information, the Board of Directors has concluded
that approval of the applications is warranted.

Resources
/un
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thousands
o f dollars)

No. 65
Pioneer Bank of Arizona
Phoenix, Arizona
(change title to Great
Western Bank & Trust Company)
to merge with
Great Western Bank & Trust Company
Tucson

B anking Offices
In
operation

59,084

62,389

To be
operated

S u m m a ry r e p o r t b y A tto r n e y G e n e ra l, D e c e m b e r 1, 1 9 6 9
Since Phoenix and Tucson are over 115 miles apart, only slight competition
exists between the two banks. A small portion of the commercial loans of
Great Western (4.5 percent of its dollar total) originates in Pioneer Bank's area
and a smaller percentage of Pioneer Bank's loans and deposits originate in
Great Western's service area.
As of June 30, 1969, seven banking organizations operated eight banks in
the Phoenix SMSA. Pioneer Bank, the fifth largest bank and fifth largest bank
ing organization had about 2.5 percent of IPC deposits, while the four largest
banking organizations controlling five banks, had about 95 percent of such
deposits.

124

FEDERAL DEPOSIT INSURANCE CORPORATION

Great Western's deposits in its Tucson SMSA branches account for about
5.7 percent of IPC deposits. There are six banks representing five banking
organizations operating in the Tucson SMSA and the three largest banking
organizations controlling the four largest banks (which do not include Great
Western) have about 89 percent of IPC deposits.
Arizona law permits statewide branch banking. Great Western can be
regarded as one of the most likely potential entrants by de novo branching
into the Phoenix SMSA area. Since Great Western’s branches are divided
between the northern counties and Tucson in the south, Phoenix, being in the
central part of the state with its tremendous rate of growth, would represent
an attractive potential area of entry. Great Western is also the largest bank in
the state which is not already in the Phoenix SMSA, a highly concentrated
banking area.
Pioneer Bank would also be a likely potential entrant into the Tucson SMSA
area. It is the second largest bank in the state which is not already in the
Tucson SMSA.
As of June 30, 1969, there were thirteen banks operating in Arizona. How
ever, two banking organizations controlling three banks held nearly 80 percent
of state IPC deposits. The merging banks rank approximately sixth and seventh
in the state with less than 2 percent each of such deposits and as a result of
the merger would rank approximately fifth.
The merged bank would constitute the fourth statewide banking organiza
tion. The overall effect of this merger is not likely to be significantly adverse.
B a s is f o r C o rp o ra tio n a p p ro v a l, D e c e m b e r 1, 1 9 6 9
Pioneer Bank of Arizona, Phoenix, Arizona (Pioneer), an insured nonmember
bank with total resources of $59 million, has applied, pursuant to Section
18(c) and other provisions of the Federal Deposit Insurance Act, for the Corpo
ration's prior consent to merge with Great Western Bank & Trust Company,
Tucson, Arizona (Western), an insured nonmember bank with total resources of
$62 million, under the charter of Pioneer and with Western's title and, incident
thereto, to establish the eight existing and two approved but unopened offices
of Western as branches of the resulting bank.
Competition. The main office and eight of Pioneer's nine branches are
located in and serve the Phoenix metropolitan area, which includes all of Mari
copa County. The other branch is located in Prescott, some 100 miles north,
in Yavapai County. The main office and two of Western's seven branches are
located in and serve the Tucson metropolitan area, which includes all of Pima
County. Tucson is 125 miles southeast of Phoenix. Three of the branches are
located singly in Winslow, Holbrook, and Snowflake, in Navajo County, more
than 200 miles northeast of Phoenix. One branch is in Kingman, county seat
of Mohave County, 250 miles west of Holbrook. The remaining branch is
located in Window Rock, 130 miles northeast of Holbrook in Apache County.
These six areas are separate and distinct and none of them overlap. There is
no competition between Pioneer and Western to be eliminated by their
merger. Preemptive branching by the larger banks reduces the ability of others
to expand through de novo branching when they lack an adequate financial
base.
There are only 13 banks and 302 operating banking offices in the entire
State of Arizona. More than 90 percent of the aggregate of bank deposits and
loans is concentrated in the four largest banks which operate 87 percent of
the offices. The two largest banks together hold more than 70 percent of the
deposits and loans and operate 200 (two-thirds) of the offices, covering the

125

BANK ABSORPTIONS APPROVED BY THE CORPORATION

entire State. The second and fourth largest banks are subsidiaries of the $10
billion Western Bancorporation, a California-based registered bank holding com
pany. Western and Pioneer, ranking sixth and seventh, respectively, are about
equal in size and together hold about 3 percent of the total bank deposits and
loans and operate 18 of the 302 banking offices. The resulting bank would
rank sixth among the 12 remaining banks. The principal competitive effects of
the merger would occur in the Phoenix and Tucson areas where, as a result of
integrated management capabilities and greater resources and capital base,
the resulting bank could provide stronger competition to these much larger
and aggressive competitors.
The Board of Directors is of the opinion that the merger will not substan
tially lessen competition, tend to create a monopoly, or in any other manner
be in restraint of trade.
Financial and Managerial Resources and Future Prospects. These factors are
resolved as favorable for the proposal.
Convenience and Needs of the Com m unity to he Served. The resulting bank
will provide trust and credit card services, which Pioneer now provides, at the
offices of Western. It will be financially able to install its own computer system
rather than rely, as both banks now do, on servicing by correspondents.
Another benefit is a larger lending lim it, double that of each bank now operat
ing separately, which would enable the resulting bank to compete more effec
tively for increasingly important industrial business in the State. The greater
resources and capital would generate stronger rivalry with the larger banks
which dominate the scene in Arizona— in all, an ultimate benefit to the public.
Based on the foregoing, the Board of Directors has concluded that approval
of the application is warranted.

R esources
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No. 66

B a n k in g O ffice s
In
o p e ra tio n

To be
o p e ra te d

Financial Bank, Inc.
Fort Wayne, Indiana
(in organization; change title to
The Peoples Trust and Savings Company)
to merge with

The Peoples Trust and Savings Company

117,071

Fort Wayne
S u m m a ry re p o r t b y A tto r n e y G e n e ra l, N o v e m b e r 2 6 , 1 9 6 9
[This] proposal is part of a transaction which will result in a presently existing
bank becoming a wholly owned subsidiary of a one-bank holding company.
Thus, [this] merger is merely part of a corporate reorganization and as such will
have no effect on competition.
B a s is f o r C o rp o ra tio n a p p ro v a l, D e c e m b e r 1, 1 9 6 9
Pursuant to Sections 5 and 18(c) and other provisions of the Federal
Deposit Insurance Act, applications have been filed for Federal deposit insur
ance for Financial Bank, Inc., Fort Wayne, Indiana (New Bank), a proposed
new bank in organization; and for consent to merge with The Peoples Trust

FEDERAL DEPOSIT INSURANCE CORPORATION

126

and Savings Company, Fort Wayne, Indiana (Old Bank), an operating insured
nonmember bank; and for permission to establish six branches. Old Bank pres
ently operates its main office and five branches and has approval to establish
a seventh office; it has total resources of $117 million. The resulting bank
would operate under the charter of New Bank, and with Old Bank's title, at the
seven locations where Old Bank is now or will be operating.
The proposal involves a formation of a one-bank holding company to hold
the stock ownership of the resulting bank. New Bank will not be in operation
as a commercial bank prior to consummation of the transaction and will begin
business at the present locations of Old Bank with the latter’s assets, liabili
ties, capital, and management.
Old Bank has provided needed and useful banking services to its trade area
on a convenient and successful basis for many years. The subject proposal will
not alter these services or the service area and, involving only a change in
form of corporate organization, will, of itself, have no effect on competition. All
factors required to be considered relative to each application are favorably
resolved.
On the basis of the above information, the Board of Directors has concluded
that approval of the applications is warranted.

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No. 67

The Central Jersey Bank and Trust Company

B a n k in g O ffice s
In
o p e ra tio n

209,476

34,292

To be
o p e ra te d

Freehold, New Jersey
to merge with

The National Bank of Westfield
Westfield

S u m m a ry r e p o r t b y A tto r n e y G e n e ra l, D e c e m b e r 1, 1 9 6 9
The closest office of Central Bank is about 27 miles from Westfield, with
several other banks in the intervening area. Thus, the proposed merger would
not appear to eliminate any significant amount of direct competition between
the two banks.
Recent legislation in New Jersey broadens geographic areas for bank expan
sion beyond the form er lim its of county lines by dividing the state into three
banking districts. Under this law, banks may branch within an entire district.
However, the law retains community-wide home protection against de novo
branching and provides branch office protection in communities of less than
7500 persons. Thus, while Central Bank is presently precluded from branching
de novo into either community now served by Westfield Bank, it could establish
branches elsewhere in Union County, possibly coming into competition with
Westfield Bank. The proposed merger would eliminate this possibility.
The recent broadening of the sphere of permissible branch operation for
commercial banks in New Jersey has induced substantial market extension
activities, both by de novo branch application and by merger. Major merger
activity by the largest banks in a district could result in undue concentration
of commercial banking among a few very large institutions. Therefore we con
sider it important that the largest banks in a district enter new areas de novo,

BANK ABSORPTIONS APPROVED BY THE CORPORATION

127

or, in the alternative, through merger with smaller banks in the new areas they
wish to serve. Entry in this manner would tend to inject new competitive vigor
into the area as the entering bank can be expected to attempt to increase its
market share. At the same time, leading local banks, most able to compete
with the large entering banks, would be preserved. Preservation of leading
local banks may also result in their affiliation with one another in new banking
institutions, capable of competing with the largest banks in the district on a
broad geographic scale.
Central Bank is one of the largest banks in the Second Banking District.
Westfield Bank, however, is the smallest of three commercial banks which
operate offices in the town of Westfield. Its two major competitors in Westfield
are both substantially larger; one is the second largest bank in the District.
Westfield Bank's service area includes most of central Union County, generally
the area between the two of the county’s largest communities, Plainfield and
Elizabeth. Several of the county’s largest banks operate offices in this area,
controlling greater percentages of deposits in the area than Westfield Bank.
Westfield Bank is one of the smaller banks in Union County as a whole, con
trolling about 3 percent of commercial bank deposits therein.
In view of the size and relative position of Westfield Bank in its service
area, Union County and the Second Banking District, we conclude that the pro
posed merger would be unlikely to have a significantly adverse effect on poten
tial competition.
B a s is f o r C o rp o ra tio n a p p ro v a l, D e c e m b e r 1, 1 9 6 9
The Central Jersey Bank and Trust Company, Freehold Township (P.O. Free
hold), New Jersey (Central), an insured State nonmember bank with total
deposits of $188,604,000, has applied, pursuant to Section 18(c) and other
provisions of the Federal Deposit Insurance Act, for the Corporation's prior
approval to merge with The National Bank of Westfield, Westfield, New Jersey
(National), which has total deposits of $30,170,000. The resulting bank would
operate under the charter and with the title of Central; and, as an incident to
the proposed merger, the two offices of National would become branches of
Central, increasing the number of its offices to 20.
Competition. Central serves Monmouth County, New Jersey (estimated 1968
population 450,000), and has its main office in Freehold Township. It also
operates 17 branches throughout the county. National operates two offices in
Union County (estimated 1968 population 575,000). Its main office is in West
field (estimated 1968 population 34,000) and it operates its only branch in
Mountainside (estimated 1968 population 8,000). National's service area con
sists of Westfield and Mountainside and all or part of the surrounding com
munities of Springfield, Cranford, Garwood, Clark, Scotch Plains, and Fanwood.
There appears to be no competition between the participating banks. Their
service areas are entirely separate, with Middlesex County lying between
them. The banks' closest offices are 27 road miles apart and are intervened by
over 40 banking offices of 14 different banks. Further, neither bank has any
loans or deposits which originate in the service area of the other bank.
The principal effect of this merger will be in the area served by National,
where a comparatively small bank will be replaced by a larger bank from out
of the area. National's share of the market in its service area (19.7 percent of
IPC deposits) would not change for the resulting bank, inasmuch as Central
does not presently serve the area. In addition, there would be 18 offices of
seven other banks remaining in that service area. Only one of the seven other
banks is smaller than National. Furthermore, in the service area, there is com

128

FEDERAL DEPOSIT INSURANCE CORPORATION

petition from the very large New York City banks and from other financial
institutions.
In view of the small size of National, the number of existing banking offices
in the relevant trade area, and the main office protection feature of New
Jersey statutes, it does not seem likely that the participating banks would
become competitive in the reasonably near future.
The Board of Directors is of the opinion that the proposed merger would not
substantially lessen competition, tend to create a monopoly, or in any other
manner be in restraint of trade.
Financial and Managerial Resources and Future Prospects. Financial and
managerial resources and future prospects are satisfactory with respect to
each of the participating banks, and they are so projected for the resulting
bank.
Convenience and Needs of the Com m unity to be Served. The principal effect
of this merger would be felt in the service area of National, where a relatively
small bank wouJd be replaced by a larger bank from out of the area, which
would be capable of offering a full range of banking services not now offered
by National, thus providing another convenient alternative to the present bank
ing outlets.
Based on the foregoing, the Board of Directors has concluded that approval
of the application is warranted.

R esources

B a n k in g O ffice s

(\r\
(in

th o u s a n d s
o f d o lla rs )

No. 68

Peoples Bank of South Jersey

In
o p e ra tio n

5,247

10,785

To be
o p e ra te d

Penns Grove, New Jersey
to merge with

The Clayton National Bank
Clayton

S u m m a ry r e p o r t by A tto r n e y G e n e ra l, O c to b e r 2 1 , 1 9 6 9
Peoples' head office is located approximately 14.5 miles west of Clayton's
head office, and the shortest distance between offices of Peoples and Clayton
is approximately 12.5 miles. There are two banks operating offices in the area
between Peoples’ and Clayton's closest offices.
It would, therefore, appear that the two banks are engaged in only limited
direct competition.
Recent banking legislation in New Jersey divides the state into three bank
ing districts; cross-county merger and branching is now permitted within an
entire district. However, such branches may not be located in communities
where a bank has its head office or where a branch office exists if the popula
tion is less than 7,500.
The small size of Peoples and the presence of large banks in other sections
of the District able to enter Clayton’s service area tends to reduce any anti
competitive effects from the loss of Peoples' potential competition.
Similar considerations apply to the possibility of Clayton expanding by de
novo branching into Salem County. While Clayton has opened two new
branches in the past four years, its small size, the large number of banks
already operating in Salem near Peoples' offices, and the presence of very

BANK ABSORPTIONS APPROVED BY THE CORPORATION

129

large banks in other sections of the District tends to make unlikely any signifi
cant reduction in potential competition as a result of the merger.
In view of the above factors, we conclude that the proposed merger is not
likely to have any significantly adverse effect on potential competition in either
Salem or Gloucester Counties.
B a s is f o r C o rp o ra tio n a p p ro v a l, D e c e m b e r 1, 1 9 6 9
Peoples Bank of South Jersey, Pilesgrove Township (P.O. Penns Grove), New
Jersey (Peoples), an insured State nonmember bank with total deposits of
$3,782,000, has applied, pursuant to Section 18(c) and other provisions of the
Federal Deposit Insurance Act, for the Corporation's prior approval to merge
with The Clayton National Bank, Clayton, New Jersey (National), which has total
deposits of $8,999,000. The banks would merge under the charter and with
the title of Peoples; and, as an incident to the merger, the three offices of
National would become branches of Peoples, increasing the number of its
offices to six. Approval is also requested for a reduction in the par value of
common stock, but there would be no diminution of total capital funds.
Competition. Peoples' main office is in the unincorporated community of
Sharptown, in Pilesgrove Township (population 3,100), in Salem County. Peo
ples also operates two branches in Penns Grove, which is west of Sharptown,
in Salem County, on the Delaware River. Peoples' trade area is the northwest
ern portion of Salem County. National operates three offices in the central sec
tion of Gloucester County. The main office of National is in Clayton (popula
tion 5,200) and its two branches are in the small nearby communities of Aura
and Iona.
The shortest distance between offices of the participating banks is the 12
miles between Sharptown and the branch of National at Aura. The trade areas
served by Peoples and National do not overlap, and there are other commer
cial banking offices in the intervening area at Woodstown. There is no percepti
ble amount of direct competition which would be eliminated by this proposed
merger.
Peoples also has the necessary approvals to establish two de novo branches
at Deepwater, in Salem County, and Hurffville, in Gloucester County. Deepwater is farther from the trade area served by National than are any of Peoples'
existing offices, and Hurffville is also beyond National's trade area. There are
commercial banking offices of competing banks in Glassboro, which is located
between Hurffville and the trade area served by National.
State law provides complete home office protection, and de novo branches
are prohibited in communities of less than 7,500 population, if a competing
bank already has a branch office in that community. The trade areas served by
the participating banks are sparsely populated, and it does not seem likely
that either would branch de novo into the other's trade area. Thus, potential
competition between the participating banks would seem unlikely under pres
ent conditions.
Peoples is the smallest bank operating in its trade area, with 10.1 percent
of the IPC deposits, while its principal competitor, with two offices in Penns
Grove, has 41.8 percent of the IPC deposits. This proposed transaction would
not reduce the number of banking offices in the relevant trade area; and, in
addition to the three offices of Peoples, there are six offices of competing
banks serving the residents of the area.
National has the second largest share of the IPC deposits in its trade area,
but the market is fairly evenly divided, with the smallest of the four banks
operating in the area having 20.7 percent and the largest having 31.5 percent.

FEDERAL DEPOSIT INSURANCE CORPORATION

130

Two of the banks operating in the area are larger than National, and the other
is not substantially smaller than National. This proposal would not reduce the
number of commercial banking offices in the area, and there would still be
seven commercial banking offices to serve the residents of the area.
The Board of Directors is of the opinion that the merger would not substan
tially lessen competition, tend to create a monopoly, or in any other manner
be in restraint of trade.
Financial and Managerial Resources. Financial and managerial resources are
adequate with respect to both participating banks and are so projected for the
resulting bank.
Future Prospects. Certain economies are anticipated as a result of this pro
posal, and the future prospects of the resulting bank are favorable.
Convenience and Needs of the Com m unity to be Served. This proposed
transaction should result in more economical services in the relevant trade
areas and should produce a bank with management responsive to the needs of
the communities it serves.
Based on the foregoing information, the Board of Directors has concluded
that approval of the application is warranted.

R esources
un
th o u s a n d s
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No. 69

Southern Bank and Trust Company

B a n k in g O ffice s
In
o p e ra tio n

67,673

2,323

To be
o p e ra te d

Greenville, South Carolina
to merge with

Blacksburg State Bank
Blacksburg

S u m m a ry r e p o r t b y A tto r n e y G e n e ra l, O c to b e r 1, 1 9 6 9
Southern's new Gaffney branch office is located approximately 8 miles
southwest of Blacksburg; there are no intervening banking alternatives.
Although there are other banking offices in Gaffney, including offices of one of
South Carolina's largest commercial banks, it would appear that the proposed
merger may eliminate some existing competition, particularly in view of the
small number of banking offices in Cherokee County. The proposed merger
would reduce the number of banking alternatives in Cherokee County from four
to three.
B a s is f o r C o rp o ra tio n a p p ro v a l, D e c e m b e r 1, 1 9 6 9
Southern Bank and Trust Company, Greenville, South Carolina (Applicant), an
insured State nonmember bank with total deposits of $57,161,000, has
applied, pursuant to Section 18(c) and other provisions of the Federal Deposit
Insurance Act, for the Corporation's prior approval to merge with Blacksburg
State Bank, Blacksburg, South Carolina (Blacksburg), which has total deposits
of $2,096,000. The banks would merge under the charter and with the title of
Applicant; and, as an incident to the merger, the one office of Blacksburg
would become a branch of Applicant, increasing the number of its authorized
offices to 17, two of which are approved but unopened.
Com petition. Applicant serves a trade area consisting of six counties in the
western piedmont and northwestern sections of South Carolina. This area,

BANK ABSORPTIONS APPROVED BY THE CORPORATION

131

known as the Piedmont Industrial Crescent, has an estimated population of
between 300,000 and 400,000. The economy of this area is largely dominated
by the textile and related industries.
Blacksburg is located approximately 60 miles northeast of Applicant’s main
office in Greenville. Its 1960 population was 2,174, and that of its trade area,
which includes nearby Gaffney, is estimated at 25,000. The textile industry is
important in this trade area, but agriculture is also of importance, with the
principal products being peaches, cotton, and livestock.
Blacksburg is the only bank in its community, and its primary competition is
from three banks operating in Gaffney, 8 miles to the southwest. These com
petitors consist of one local bank, a branch of the second largest bank in the
State, and a branch of Applicant which opened in March 1969. The proposed
merger would reduce the number of banking alternates from four to three and
increase Applicant's share of the relevant market by a small amount, but
Applicant would have the smallest share of the three remaining banks. This
proposal would eliminate the smallest of the four banks operating in the
Blacksburg-Gaffney trade area and replace it with a branch of an aggressive
medium-sized bank which has the resources to compete effectively with the
other banks in the area.
The Board of Directors is of the opinion that the merger would not substan
tially lessen competition, tend to create a monopoly, or in any other manner
be in restraint of trade.
Financial Resources. The financial resources are satisfactory with regard to
both participating banks and are so projected for the resulting bank.
Managerial Resources. The managerial resources of both institutions are
regarded as satisfactory, but to Blacksburg's management the proposed transac
tion would add considerable depth, which is now lacking because of the bank's
relatively small size.
Future Prospects. Applicant has been an aggressive com petitor and has
experienced substantial growth, while Blacksburg's growth has been considera
bly slower. The future prospects of Blacksburg, as a part of the resulting bank,
would be enhanced; and the future prospects of the resulting bank are favor
able.
Convenience and Needs of the Com m unity to be Served. The proposed
merger would have no significant effect on the overall trade area of Applicant,
but it would improve the quantity of banking services in the Blacksburg area.
Based on the foregoing information, the Board of Directors has concluded
that approval of the application is warranted.

R esources
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No. 70

th o u s a n d s
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B a n k in g O ffices
In
o p e ra tio n

First County Bank

Driver, Virginia
(in organization; change title to
The Bank of Nansemond)
to merge with

The Bank of Nansemond
Nansemond

To be
o p e ra te d

2,757

132

FEDERAL DEPOSIT INSURANCE CORPORATION

S u m m a ry re p o r t b y A tto r n e y G e n e ra l, S e p te m b e r 2 4 , 1 9 6 9
The proposed merger is part of a plan under which First Virginia Bankshares
Corporation, a registered bank holding company, proposes to acquire all of the
voting shares of First County Bank, a non operating institution, which js to be
the resulting bank of its proposed merger with The Bank of Nansemond. The
proposed merger, therefore, will combine an operating bank with a non operat
ing institution. As such, and without regard to the planned subsequent acquisi
tion of First County Bank by First Virginia Bankshares Corporation, the pro
posed merger will have no effect on competition.
B a s is f o r C o rp o ra tio n a p p ro v a l, D e c e m b e r 1, 1 9 6 9
Pursuant to Sections 5 and 18(c) and other provisions of the Federal
Deposit Insurance Act, applications have been filed for Federal deposit insur
ance for First County Bank, Driver, Virginia (First), a proposed new bank in
organization, and for consent to its merger with The Bank of Nansemond,
Driver, Virginia (Nansemond), with total resources of $2,757,000, under First's
charter and with Nansemond’s title. The resulting bank will operate from the
sole office of Nansemond.
The new bank formation and merger are designed solely as a vehicle for
First Virginia Bankshares Corporation, Arlington, Virginia, a registered bank
holding company, to acquire controlling ownership of Nansemond. The holding
company has filed the appropriate application with the Board of Governors of
the Federal Reserve System for consent to the acquisition of 90 percent or
more of the voting shares of the successor bank to the merger. First will
not be in operation as a commercial bank prior to the merger, following which it
will operate the same banking business at the same location as Nansemond
and with the same executive management. The proposal, of itself, will not
change the banking services which Nansemond has provided usefully and con
veniently to the Driver community for several years. Nansemond is by far the
smallest bank in its service area, and its primary competition is provided by
much larger banks in nearby Chesapeake and Portsmouth, Virginia, including
branches of the State's two largest banks which operate multiple branch sys
tems. All factors required to be considered relative to each application are
favorably resolved.
On the basis of the above information, the Board of Directors has concluded
that approval of the applications is warranted.

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Union State Bank

B a n k in g O ffices
In
o p e ra tio n

8,428

1,390

To be
o p e ra te d

Amery, Wisconsin
to merge with

State Bank of Deer Park
Deer Park

S u m m a ry r e p o r t by A tto r n e y G e n e ra l, D e c e m b e r 1, 1 9 6 9
Sixty-two percent of Union Bank’s common stock and seventy-four percent
of Deer Park Bank’s common stock is owned by the Otto Bremer Foundation
and the Otto Bremer Company, a wholly-owned subsidiary of the Foundation.

BANK ABSORPTIONS APPROVED BY THE CORPORATION

133

The Deer Park Bank stock was acquired in April 1966, at which time two direc
tors of Union Bank were elected to the board of Deer Park Bank. The Otto
Bremer Foundation and the Otto Bremer Company, directly or in combination,
own a majority of the stock of 30 banks located in Wisconsin, Minnesota and
North Dakota. As of year-end 1968, these 30 subsidiary banks had aggregate
deposits of $303.5 million; the largest subsidiary, First American National
Bank, St. Cloud, Minnesota, had total deposits of $27.3 million.
The merging banks are located approximately ten miles apart with no banks
in the intervening area. The closest bank to the merging banks is Bank of
Clear Lake (total deposits, $3.9 m illion), which is seven miles southeast of
Union Bank and nine miles northeast of Deer Park Bank. Thus, it appears that,
but for the common ownership, the banks would be in competition. This
merger will eliminate the potential for the resumption of this competition
should such common ownership be terminated.
B a s is f o r C o rp o ra tio n a p p ro v a l, D e c e m b e r 1, 1 9 6 9
Union State Bank, Amery, Wisconsin (Applicant), an insured State nonmem
ber bank with total deposits of $7.7 million, has applied, pursuant to Section
18(c) of the Federal Deposit Insurance Act, for the Corporation's prior consent
to merge with State Bank of Deer Park, Deer Park, Wisconsin (Deer Park
Bank), an insured State nonmember bank with total deposits of $1.3 million.
The merger would be effected under Applicant’s charter and with its title. Upon
consummation of this proposed transaction Deer Park Bank would cease to
operate. The State Attorney General has ruled that a bank may not file an
application for permission to establish a branch unless the community in
which the branch is to be located is "bankless.” As soon as this proposed
transaction is consummated, Applicant intends to immediately file the neces
sary applications for permission to establish a branch in Deer Park.
Com petition. Applicant’s one office in Amery (population 2,200) is 10 miles
from the one office of Deer Park Bank in Deer Park (population 250), and
there are no commercial banking offices in the intervening area. There is a com
mercial bank at Clear Lake, which is only 7 miles from Amery and 9 miles
from Deer Park. The merging banks are subsidiaries of the Otto Bremer Foun
dation, St. Paul, Minnesota, a registered bank holding company. Because of
this affiliation, there is no competition between Applicant, and Deer Park Bank;
and the evidence indicates that prior to the advent of their common ownership
in 1966 there was little, if any, competition between them.
There are no other affiliates of the Otto Bremer Foundation among the eight
banks considered to be competitors of the merging banks. Deer Park Bank is
the smallest, and three of the banks are each larger than Applicant. The
resulting bank would be the third largest in the area, with IPC deposits of $8.4
million. The other banks have IPC deposits ranging from $1.6 million to $9.3
million. The merger would not change the share of banking business controlled
by the holding company in this area and would have no material effect on the
existing competitive banking structure.
The Board of Directors is of the opinion that the proposed transaction would
not substantially lessen competition, tend to create a monopoly, or in any
manner be in restraint of trade.
Financial and Managerial Resources and Future Prospects. These are favor
able with respect to the merging banks and are so projected for the resulting
bank.
Convenience and Needs of the Com m unity to be Served. This proposed
transaction would have no appreciable effect in the Amery area. Temporarily at

134

FEDERAL DEPOSIT INSURANCE CORPORATION

least, consummation of this proposal would inconvenience the customers of
Deer Park Bank since the community would be without a banking facility for a
short period of time. However, after the branch is established at Deer Park,
the credit needs of that area would be more adequately and conveniently
served by the significantly increased legal lending lim it. Neither of the partici
pating banks has an agricultural representative, but one will be provided by
the resulting bank.
Based on the foregoing information, the Board of Directors has concluded
that approval of the application is warranted.

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Citizens State Bank
Big Rapids, Michigan
(change title to Central
Michigan Bank)
to merge with
Central Michigan Bank
Barryton

B a n k in g O ffices
In
o p e ra tio n

13,083

6,423

To be
o p e ra te d

S u m m a ry re p o r t by A tto r n e y G e n e ra l, N o v e m b e r 18, 1 9 6 9
The proposal would merge the $11.8 million Citizens Bank with the $5.3
million Central Bank.
Head offices of the merging banks are located about 20 miles apart. How
ever, Citizens Bank has a branch office in the city of Mecosta, about eight
miles west of Central Bank's home office. And Central Bank has a branch
office in Remus, some six miles southeast of Mecosta. There are no banks
operating in the intervening areas. Thus, it would appear that substantial
direct competition exists between the merging banks. This competition will, of
course, be permanently eliminated by consummation of the proposed merger.
Commercial banking in Mecosta County is highly concentrated. Four banks
operate in the county with total deposits, as of June 30, 1968, of about $31
million. The top three banks, including the Applicants, control some 97.3 per
cent of these deposits. Citizens Bank is the second largest with about 39.5
percent, and Central Bank ranks third with some 16.3 percent. Should this
merger be consummated, only three banks would remain in the county, and
the resulting bank would be the largest- with more than 56 percent of total
county-wide deposits. The merger would result in a significant increase in the
level of concentration.
The proposal would merge the second and third largest commercial banks in
Mecosta County. It would reduce the number of banks in the county to three,
eliminate apparent substantial existing competition, and significantly increase
the level of concentration. The overall effect of this merger on competition will
be adverse.
B a s is f o r C o rp o ra tio n a p p ro v a l, D e c e m b e r 4 , 1 9 6 9
Citizens State Bank, Big Rapids, Michigan (Applicant), an insured State non
member bank with total deposits of $11,488,000, has applied, pursuant to
Section 18(c) and other provisions of the Federal Deposit Insurance Act, fo r

BANK ABSORPTIONS APPROVED BY THE CORPORATION

135

the Corporation's prior consent to merge with Central Michigan Bank, Barryton,
Michigan (Central), which has total deposits of $5,581,000, under the charter
of Applicant and with the title of Central and, incident thereto, to establish the
two offices of Central as branches.
Com petition. All offices of the merged bank will operate in Mecosta County,
located in north-central Michigan. Big Rapids, the county seat, is located in the
west-central portion of the county, while Barryton is in the northeastern por
tion of the county, some 22 miles distant. There is a limited overlapping of
the service areas of Applicant and Central, principally in the areas of their
branches in Remus and Mecosta, which are about 6 miles apart. The merged
bank will be the largest of the three banks operating in the county, but six
banking offices located in contiguous counties also provide competition. The
substitution of branches of Applicant for Central's offices would have no dis
cernible anticompetitive effects.
The Board of Directors is of the opinion that the proposed transaction would
not substantially lessen competition, tend to create a monopoly, or in any
manner be in restraint of trade.
Financial and Managerial Resources and Future Prospects. These factors are
satisfactory with respect to the participating banks and are so projected for
the resulting bank.
Convenience and Needs of the Com m unity to be Served. Central, because of
its smaller resources, offers limited services. As a result of the merger, the
areas served by Central would gain the advantage of a larger bank with a
larger lending limit. Also, the increased likelihood of offering trust services
after the merger is consummated indicates that the resulting bank could better
serve the convenience and needs of the community.
Based on the foregoing information, the Board of Directors has concluded
that approval of the application is warranted.

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No. 73

Great American Bank & Trust Company

B a n k in g O ffices
In
o p e ra tio n

To be
o p e ra te d

100

Baton Rouge, Louisiana
(in organization; change title to American
Bank & Trust Company)
to merge with

American Bank & Trust Company

257,400

Baton Rouge
S u m m a ry r e p o r t b y A tto r n e y G e n e ra l, D e c e m b e r 2, 1 9 6 9
The proposed merger is part of a transaction which will result in Great
American Bank & Trust Company becoming a wholly owned subsidiary of a
one-bank holding company. Thus, this merger is merely part of a corporate
reorganization and as such will have no effect on competition.
B a s is f o r C o rp o ra tio n a p p ro v a l, D e c e m b e r 18, 1 9 6 9
Pursuant to Sections 5 and 18(c) and other provisions of the Federal
Deposit Insurance Act, applications have been filed for Federal deposit insur
ance for Great American Bank & Trust Company, Baton Rouge, Louisiana (New

136

FEDERAL DEPOSIT INSURANCE CORPORATION

Bank), a proposed new bank in organization; and for consent to merge with
American Bank & Trust Company, Baton Rouge, Louisiana (Old Bank), an oper
ating insured nonmember bank; and for permisssion to establish seven
branches. Old Bank presently operates seven offices and has the necessary
approvals to establish another de novo branch. As of September 30, 1969, Old
Bank had total resources of $257 million. The resulting bank would operate
under the charter of New Bank and with the title of Old Bank.
The proposal involves the formation of a one-bank holding company to hold
stock ownership of the resulting bank. New Bank will not be in operation as a
commercial bank prior to consummation of the transaction and will begin busi
ness at the present locations of Old Bank with the latter’s assets, liabilities,
capital, and management.
Old Bank has provided needed and useful banking services to its trade area
on a convenient and successful basis for many years. The subject proposal will
not alter these services or the service area and, involving only a change in
form of corporate organization, will, of itself, have no effect on competition. All
factors required to be considered relative to each application are favorably
resolved.
On the basis of the above information, the Board of Directors has concluded
that approval of the applications is warranted.
1 B a n k o f A m e ric a o p e ra te d 962 b ra n ch e s in C a lifo rn ia as o f A p ril 1, 1968. FDIC s ta tis tic s
do n o t in c lu d e b ra n ch e s in fo re ig n c o u n trie s .
In a c o n c u rre n t a p p lic a tio n , R oa ch d ale B a n k and T ru s t C o m p a n y s o u g h t th e a p p ro v a l
o f th e B oard o f G o ve rn ors o f th e Federal Reserve S yste m to m e rge The S ta te B a n k o f
R u s s e llv ille u n d e r th e title “ T ri-C o u n ty B a n k & T ru s t C o m p a n y ” ; th e sole o ffic e o f
R u s s e llv ille B a n k w o u ld be d is c o n tin u e d , and its o p e ra tio n s c o m b in e d w ith th e sole o ffic e
o f th e S ta te B a n k o f R u s s e llv ille w o u ld be o p e ra te d as a b ra n ch o f th e A p p lic a n t.
3 R ep re se nts p r o fo rm a a m o u n t o f assets o f W in d s o r H e ig h ts o ffic e o f B a n kers T ru s t C o m
p an y to be tra n s fe rre d to th e p rop o se d new bank.

4 B a n k o f H aw a ii o p e ra te s 53 o ffic e s in th e S ta te o f H a w a ii and seven o ffic e s on v a rio u s
P a cific Isla n d s.
5 M illik in T ru s t C o m p a n y and A p p lic a n t a t p re se n t o c c u p y o ffic e s in th e sam e b u ild in g .

LEGISLATION AND REGULATIONS
PART THREE

139

FEDERAL BANKING LEGISLATION— 1969
P u b lic L a w 9 1 -7 1
9 1 s t C o n g re s s , S .J . R es. 1 4 9
S e p te m b e r 2 2 , 1 9 6 9

An Act
To extend for three months the authority to limit the rates of interest or divi
dends payable on time and savings deposits and accounts.
R esolved by th e S en a te a n d H ouse of R epresentatives of th e U n ite d S tates of
A m erica in Congress assem b led, That:
Section 7 of the Act of September 21, 1966, as amended (Public Law 89597), is amended by striking out “ September" and inserting in lieu thereof
“ December".
Approved September 22, 1969.

P u b lic L a w 9 1 -1 5 1
9 1 s t C o n g re s s , S. 2 5 7 7
D ecem ber 23, 1969

An Act
To lower interest rates and fight inflation; to help housing, small business,
and employment; to increase the availability of mortgage credit; and for
other purposes.
Be it en acted by th e S en a te a n d H ouse of R epresentatives of th e U n ite d
S tates of A m erica in C ongress assem bled,

TITLE I— AMENDMENTS TO EXISTING ACTS
Section 1. Section 7 of the Act of September 21, 1966 (Public Law 89-587;
80 Stat. 823) is amended to read:
“ Sec. 7. Effective March 22, 1971:
“ (1) So much of section 19(j) of the Federal Reserve Act (12 U.S.C.
371(b)) as precedes the third sentence thereof is amended to read as it
would without the amendment made by section 2(c) of this Act.
“ (2) The second and third sentences of section 18(g) of the Federal
Deposit Insurance Act (12 U.S.C. 1828(g)) are amended to read as they
would without the amendment made by section 3 of this Act.
“ (3) The last three sentences of section i**(g) of the Federal Deposit
Insurance Act (12 U.S.C. 1828(g)) are repealeo.
“ (4) Section 5B of the Federal Home Loan Bank Act (12 U.S.C. 1425b)
is repealed."
Sec. 2. (a) Section 18(g) of the Federal Deposit Insurance Act (12 U.S.C.
1828(g)) is amended by adding at the end thereof the following new sen

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FEDERAL DEPOSIT INSURANCE CORPORATION

tences: “ The authority conferred by this subsection shall also apply to nonin
sured banks in any State if (1) the total amount of time and savings deposits
held in all such banks in the State, plus the total amount of deposits, shares,
and withdrawable accounts held in all building and loan, savings and loan, and
homestead associations (including cooperative banks) in the State which are
not members of a Federal home loan bank, is more than 20 per centum of the
total amount of such deposits, shares, and withdrawable accounts held in all
banks, and building and loan, savings and loan, and homestead associations
(including cooperative banks) in the State, and (2) there does not exist under
the laws of such State a bank supervisory agency with authority comparable to
that conferred by this subsection, including specifically the authority to regu
late the rates of interest and dividends paid by such noninsured banks on time
and savings deposits, or if such agency exists it has not issued regulations in
the exercise of that authority. Such authority shall only be exercised by the
Board of Directors with respect to such noninsured banks prior to July 31,
1970, to lim it the rates of interest or dividends which such banks may pay on
tim e and savings deposits to maximum rates not lower than 5 y 2 per centum
per annum. Whenever it shall appear to the Board of Directors that any non
insured bank or any affiliate thereof is engaged or has engaged or is about to
engage in any acts or practices which constitute or will constitute a violation
of the provisions of this subsection or of any regulations thereunder, the
Board of Directors may, in its discretion, bring an action in the United States
district court for the judicial district in which the principal office of the non
insured bank or affiliate thereof is located to enjoin such acts or practices, to
enforce compliance with this subsection or any regulations thereunder, or for a
combination of the foregoing, and such courts shall have jurisdiction of such
actions, and, upon a proper showing, an injunction, restraining order, or other
appropriate order may be granted without bond."
(b)
Section 5B of the Federal Home Loan Bank Act (12 U.S.C. 1425b) is
amended to read as follows:
"Sec. 5B. (a) The Board may from tim e 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, prescribe rules governing the
payment and advertisement of interest or dividends on deposits, shares, or
withdrawable accounts, including lim itations on the rates of interest or divi
dends 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, by institutions which
are insured institutions as defined in section 401(a) of the National Housing
Act, and by nonmember building and loan, savings and loan, and homestead
associations, and cooperative banks. 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 d if
ferent maturities or subject to different conditions regarding withdrawal or
repayment, according to the nature or location of such members, institutions,
or nonmembers or their depositors, shareholders or withdrawable account hold
ers, or according to such other reasonable bases as the Board may deem
desirable in the public interest. The authority conferred by this subsection
shall apply to nonmember building and loan, savings and loan, and homestead
associations, and cooperative banks in any State if (1) the total amount of
deposits, shares, and withdrawable accounts held in all such nonmember asso
ciations and banks in the State, plus the total amount of time and savings

FEDERAL BANKING LEGISLATION— 1969

141

deposits held in all banks in the State which are not insured by the Federal
Deposit Insurance Corporation, is more than 20 per centum of the total
amount of such deposits, shares, and withdrawable accounts held in all banks,
and building and loan, savings and loan, and homestead associations (includ
ing cooperative banks) in the State, and (2) there does not exist under the
laws of such State a bank supervisory agency with authority comparable to
that conferred by the first two sentences of this subsection, including specifi
cally the authority to regulate the rates of interest and dividends paid by any
such association or bank on deposits, shares, or withdrawable accounts, or if
such agency exists it has not issued regulations in the exercise of that author
ity. Such authority shall only be exercised by the Board with respect to such
nonmember associations and banks prior to July 31, 1970, to lim it the rates
of interest or dividends which such associations or banks may pay on depos
its, shares, or withdrawable accounts to maximum rates not lower than 5Y2
per centum per annum.
“ (b) In addition to any other penalty provided by this or any other law, any
institution subject to this section which violates a rule promulgated pursuant
to this section shall be subject to such civil penalties, which shall not exceed
$100 for each violation, as may be prescribed by said Board by rule and such
rule may provide with respect to any or all such violations that each day on
which the violation continues shall constitute a separate violation. The Board
may recover any such civil penalty for it own use, through action or other
wise, including recovery thereof in any other action or proceeding under this
section. The Board may, at any time before collection of any such penalty,
whether before or after the bringing of an action or other legal proceeding, the
obtaining of any judgment or other recovery, or the issuance or levy of any
execution or other legal process therefor, and with or without consideration,
compromise, remit, or mitigate in whole or in part any such penalty or any
such recovery.
“ (c) Whenever it shall appear to the Board that any nonmember institution
is engaged or has engaged or is about to engage in any acts or practices
which constitute or will constitute a violation of the provisions of this section
or of any regulations thereunder, the Board may, in its discretion, bring an
action in the United States district court for the judicial district in which the
principal office of the institution is located to enjoin such acts or practices, to
enforce compliance with this section or any regulations thereunder, or for a
combination of the foregoing, and such courts shall have jurisdiction of such
actions, and, upon a proper showing, an injunction, restraining order, or other
appropriate order may be granted without bond.
“ (d) All expenses of the Board under this section shall be considered as
nonadministrative expenses."
Sec. 3. Section 11 (i) of the Federal Home Loan Bank Act (12 U.S.C.
1431 (i)) is amended—
(1) by striking out “ $1,000,000,000" and inserting in lieu thereof
“ $4,000,000,000";
(2) by striking out the last sentence thereof and inserting in lieu
thereof the following: “ Each purchase of obligations by the Secretary of
the Treasury under this subsection shall be upon terms and conditions as
shall be determined by the Secretary of the Treasury and shall bear such
rate of interest as may be determined by the Secretary of the Treasury
taking into consideration the current average market yield for the month

FEDERAL DEPOSIT INSURANCE CORPORATION

142

preceding the month of such purchase on outstanding marketable obliga
tions of the United States."; and
(3) by adding at the end thereof a new paragraph as follows:
“ The authority provided in this subsection shall be used by the Secretary of
the Treasury, when alternative means cannot effectively be employed, to
permit members of the Home Loan Bank System to continue to supply reason
able amounts of funds to the mortgage market whenever the ability to supply
such funds is substantially impaired during periods of monetary stringency and
rapidly rising interest rates and any funds so borrowed shall be repaid by the
Home Loan Bank Board at the earliest practicable date."
Sec. 4. (a) Section 19(a) of the Federal Reserve Act (12 U.S.C. 461) is
amended by inserting after the word “ interest," the following: “ to determine
what types of obligations, whether issued directly by a member bank or indi
rectly by an affiliate of a member bank or by other means, shall be deemed a
deposit,".
(b)(1) The fourth sentence of section 18(g) of the Federal Deposit Insur
ance Act (12 U.S.C. 1828(g)) is amended to read as follows: “ The Board of
Directors is authorized for the purposes of this subsection to define the terms
‘time deposits' and ‘savings deposits', to determine what shall be deemed a
payment of interest, and to prescribe such regulations as it may deem neces
sary to effectuate the purposes of this subsection and to prevent evasions
thereof."
(2) Section 18(g) of such Act is further amended by inserting after the fifth
sentence the following: “ The provisions of this subsection and of regulations
issued thereunder shall also apply, in the discretion of the Board of Directors,
to obligations other than deposits that are undertaken by insured nonmember
banks or their affiliates for the purpose of obtaining funds to be used in the
banking business. As used in this subsection, the term ‘affiliate’ has the same
meaning as when used in section 2(b) of the Banking Act of 1933, as
amended (12 U.S.C. 221a(b)), except that the term ‘member bank’, as used
in such section 2(b), shall be deemed to refer to an insured nonmember
bank."
(c) The first sentence of section 18(g) of the Federal Deposit Insurance Act
(12 U.S.C. 1828(g)) is amended by inserting “ or dividends" after “ interest’
Sec. 5. Section 19(b) of the Federal Reserve Act (12 U.S.C. 461) is
amended by adding at the end thereof a new sentence as follows: “ The Board
may, however, prescribe any reserve ratio, not more than 22 per centum, with
respect to any indebtedness of a member bank that arises out of a transaction
in the ordinary course of its banking business with respect to either funds
received or credit extended by such bank to a bank organized under the law of
a foreign country or a dependency or insular possession of the United States."
Sec. 6. (a) Effective as of the close of December 31, 1969, section 404 of
the National Housing Act is amended
(1) by striking out “ plus any creditor obligations of such institu tio n " in
subsection (b)(1), and the amendment made by this subdivision (1) shall
be applicable also to any then unexpired portion of any then current
premium year under subsection (b)(1).
(2) by striking out “ and creditor obligations" in subsection (b)(2).
(3) by striking out “ and its creditor obligations" in subsection (c).
(4) by striking out “ and creditor obligations" each place it appears in
subsection (g). The condition in the first sentence of that subsection shall

FEDERAL BANKING LEGISLATION— 1969

143

be deemed to be met as of the close of December 31, 1969. The words
"such year” in that sentence shall be deemed to include also the year
beginning January 1, 1970.
(b) The Federal Savings and Loan Insurance Corporation is authorized by
regulation or otherwise
(1) to make such provisions as it may deem advisable with respect to
the order in which and the extent to which the components of a pro rata
share of its secondary reserve shall be applied or be deemed to have
been applied in the case of a reduction of such share through a use
under the second sentence of section 404(e) of the National Housing Act
or the first sentence of section 404(g), a transfer of part of such share
under the third sentence of section 404(e), or otherwise.
(2) to take such action, including without limitation such adjustments
and refunds and such deferrals of premium payments and other pay
ments, as it may determine to be necessary or appropriate for or in
connection with the implementation of this section or other legislation
amending or supplementing said section 404.
Sec. 7. (a) The following provisions of the Federal Deposit Insurance Act
are amended by changing "$15,000", each place it appears therein, to read
" $ 20,000":
(1) The first sentence of section 3(m) (12 U.S.C. 1813(m)).
(2) The first sentence of section 7(i) (12 U.S.C. 1817(i)>.
(3) The last sentence of section 11(a) (12 U.S.C. 1821(a)).
(4) The fifth sentence of section 11 (i) (12 U.S.C. 1821 (i)).
(b) The amendments made by this section are not applicable to any claim
arising out of the closing of a bank prior to the date of enactment of this Act.
Sec. 8. (a) The following provisions of title IV of the National Housing Act
are amended by changing "$15,000", each place it appears therein, to read
" $ 20,000":
(1) Section 401(b)(12 U.S.C. 1724(b)).
(2) Section 405(a) (12 U.S.C. 1728(a)).
(b) The amendments made by this section are not applicable to any claim
arising out of a default, as defined in section 401(d) of the National Housing
Act, where the appointment 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.
Sec. 9. (a) Section 708(b) of the Defense Production Act of 1950 (50 U.S.C.
2158(b)) is amended by striking out everything after "United States", the
first time it appears, and inserting a period in lieu thereof.
(b) Section 708(f) of that Act (50 U.S.C. 2158(f)) is repealed.

TITLE II— AUTHORITY FOR CREDIT CONTROL
Sec. 201. Short title
This title may be cited as the Credit Control Act.
Sec. 202. Definitions and rules of construction
(a) The definitions and rules of construction set forth in this section apply
to the provisions of this title.
(b) The term "B oard" refers to the Board of Governors of the Federal
Reserve System.

144

FEDERAL DEPOSIT INSURANCE CORPORATION

(c) The term “ organization” means a corporation, government or govern
mental subdivision or agency, trust, estate, partnership, cooperative, or asso
ciation.
(d) The term “ person" means a natural person or an organization.
(e) The term “ credit" means the right granted by a creditor to a debtor to
defer payment of debt or to incur debt and defer its payment.
(f) The term “ creditor" refers to any person who extends, or arranges for
the extension of, credit, whether in connection with a loan, a sale of property
or services, or otherwise.
(g) The term “ credit sale" refers to any sale with respect to which credit is
extended or arranged by the seller. The term includes any rental-purchase con
tract and any contract or arrangement for the bailing or leasing of property
when used as a financing device.
(h) The terms “ extension of credit" and “ credit transaction" include loans,
credit sales, the supplying of funds through the underwriting, distribution, or
acquisition of securities, the making or assisting in the making of a direct
placement, or otherwise participating in the offering, distribution, or acquisition
of securities.
(i) The term “ borrower" includes any person to whom credit is extended.
(j) The term “ loan" includes any type of credit, including credit extended in
connection with a credit sale.
(k) The term “ State" refers to any State, the Commonwealth of Puerto
Rico, the District of Columbia, and any territory or possession of the United
States.
(I)
Any reference to any requirement imposed under this title of any provi
sion thereof includes reference to the regulations of the Board under this title
or the provision thereof in question.
Sec. 203. Regulations
The Board shall prescribe regulations to carry out the purposes of this title.
These regulations may contain such classifications, differentiations, or other
provisions, and may provide for such adjustments and exceptions for any class
of transactions, as in the judgment of the Board are necessary or proper to
effectuate the purposes of this title, to prevent circumvention or evasion
thereof, or to facilitate compliance therewith.
Sec. 204. Determination of interest charge
Except as otherwise provided by the Board, the amount of the interest
charge in connection with any credit transaction shall be determined under the
regulations of the Board as the sum of all charges payable directly or indi
rectly to the person by whom the credit is extended in consideration of the
extension of credit.
Sec. 205. Authority for institution of credit controls
(a) Whenever the President determines that such action is necessary or
appropriate for the purpose of preventing or controlling inflation generated by
the extension of credit in an excessive volume, the President may authorize
the Board to regulate and control any or all extensions of credit.
(b) The Board may, in administering this Act, utilize the services of the
Federal Reserve banks and any other agencies, Federal or State, which are
available and appropriate.

FEDERAL BANKING LEGISLATION— 1969

145

Sec. 206. Extent of control
The Board, upon being authorized by the President under section 205 and
for such period of time as he may determine, may by regulation
(1) require transactions or persons or classes of either to be registered
or licensed.
(2) prescribe appropriate limitations, terms, and conditions for any
such registration or license.
(3) provide for suspension of any such registration or license for viola
tion of any provision thereof or of any regulation, rule, or order pre
scribed under this Act.
(4) prescribe appropriate requirements as to the keeping of records
and as to the form, contents, or substantive provisions of contracts, liens,
or any relevant documents.
(5) prohibit solicitations by creditors which would encourage evasion or
avoidance of the requirements of any regulation, license, or registration
under this Act.
(6) prescribe the maximum amount of credit which may be extended
on, or in connection with, any loan, purchase, or other extension of
credit.
(7) prescribe the maximum rate of interest, maximum maturity, m ini
mum periodic payment, maximum period between payments, and any
other specification or limitation of the terms and conditions of any exten
sion of credit.
(8) prescribe the methods of determining purchase prices or market
values or other bases for computing permissible extensions of credit or
required downpayment.
(9) prescribe special or different terms, conditions, or exemptions with
respect to new or used goods, minimum original cash payments, tem po
rary credits which are merely incidental to cash purchases, payment or
deposits usable to liquidate credits, and other adjustments or special situ
ations.
(10) prescribe maximum ratios, applicable to any class of either credi
tors or borrowers or both, of loans of one or more types or of all types
(A) to deposits of one or more types or of all types.
(B) to assets of one or more types or of all types.
(11) prohibit or lim it any extensions of credit under any circumstances
the Board deems appropriate.
Sec. 207. Reports
Reports concerning the kinds, amounts, and characteristics of any exten
sions of credit subject to this title, or concerning circumstances related to
such extensions of credit, shall be filed on such forms, under oath or other
wise, at such times and from tim e to time, and by such persons, as the Board
may prescribe by regulation or order as necessary or appropriate for enabling
the Board to perform its functions under this title. The Board may require any
person to furnish, under oath or otherwise, complete information relative to
any transaction within the scope of this title including the production of any
books of account, contracts, letters, or other papers, in connection therewith in
the custody or control of such person.

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FEDERAL DEPOSIT INSURANCE CORPORATION

Sec. 208. Injunctions
Whenever it appears to the Board that any person has engaged, is engaged,
or is about to engage in any acts or practices constituting a violation of any
regulation under this title, it may in its discretion bring an action, in the
proper district court of the United States or the proper United States court of
any territory or other place subject to the jurisdiction of the United States, to
enjoin such acts or practices, and upon a proper showing a permanent or tem
porary injunction or restraining order shall be granted without bond. Upon
application of the Board, any such court may also issue mandatory injunctions
commanding any person to comply with any regulation of the Board under this
title.
Sec. 209. Civil penalties
(a) For each willful violation of any regulation under this title, the Board
may assess upon any person to which the regulation applies, and upon any
partner, director, officer, or employee thereof who w illfully participates in the
violation, a civil penalty not exceeding $1,000.
(b) In the event of the failure of any person to pay any penalty assessed
under this section, a civil action for the recovery thereof may, in the discretion
of the Board, be brought in the name of the United States.
Sec. 210. Criminal penalty
Whoever w illfully violates any regulation under this title shall be fined not
more than $1,000 or imprisoned not more than one year, or both.

TITLE III— SMALL BUSINESS ADMINISTRATION ACTIVITY
Sec. 301. The Small Business Administration shall promptly increase the
level of its financing functions utilizing the business loan and investment fund
established under section 4(c)(1)(B ) of the Small Business Act (15 U.S.C.
633(c)(1)(B )) by $70,000,000 above the level prevailing at the time of enact
ment of this Act. The Small Business Administration shall submit to Congress
a monthly report of its implementation of this section.
Approved December 23, 1969.

P u b lic L a w 9 1 -1 5 6
9 1 s t C o n g re s s , H .R . 7 4 9 1
D ecem ber 24, 1969

An Act
To clarify the liability of national banks for certain taxes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
§ 1. Temporary amendment of section 5219, Revised Statutes
(a)
Section 5219 of the Revised Statutes (12 U.S.C. 548) is amended by
adding at the end thereof the following:
“ 5. (a) In addition to the other methods of taxation authorized by the fore
going provisions of this section and subject to the lim itations and restrictions
specifically set forth in such provisions, a State or political subdivision thereof
may impose any tax which is imposed generally on a nondiscriminatory basis

FEDERAL BANKING LEGISLATION— 1969

147

throughout the jurisdiction of such State or political subdivision (other than a
tax on intangible personal property) on a national bank having its principal
office within such State in the same manner and to the same extent as such
tax is imposed on a bank organized and existing under the laws of such State.
“ (b) Except as otherwise herein provided, the legislature of each State may
impose, and may authorize any political subdivision thereof to impose, the fo l
lowing taxes on a national bank not having its principal office located within
the jurisdiction of such State, if such taxes are imposed generally throughout
such jurisdiction on a nondiscriminatory basis:
“ (1) Sales taxes and use taxes complementary thereto upon purchases,
sales, and use within such jurisdiction.
"(2 ) Taxes on real property or on the occupancy of real property
located within such jurisdiction.
“ (3) Taxes (including documentary stamp taxes) on the execution,
delivery, or recordation of documents within such jurisdiction.
“ (4) Taxes on tangible personal property (not including cash or cur
rency) located within such jurisdiction.
“ (5) License, registration, transfer, excise, or other fees or taxes
imposed on the ownership, use, or transfer of tangible personal property
located within such jurisdiction.
“ (c) No sales tax or use tax complementary thereto shall be imposed pur
suant to this paragraph 5 upon purchases, sales, and use within the taxing
jurisdiction of tangible personal property which is the subject matter of a w rit
ten contract of purchase entered into by a national bank prior to September 1,
1969.
“ (d) As used in this paragraph 5, the term 'State' means any of the several
States of the United States, the District of Columbia, the Commonwealth of
Puerto Rico, the Virgin Islands, and Guam."
(b)
The amendment made by subsection (a) of this section shall be effec
tive from the date of enactment of this Act until the effective date of the
amendment made by section 2(a) of this Act.
§ 2. Permanent amendment of section 5219, Revised Statutes
(a) Section 5219 of the Revised Statutes (12 U.S.C. 548) is amended to
read:
“ Sec. 5219. For the purposes of any tax law enacted under authority of the
United States or any State, a national bank shall be treated as a bank orga
nized and existing under the laws of the State or other jurisdiction within
which its principal office is located."
(b) The amendment made by subsection (a) becomes effective on January 1,
1972.
§ 3. Saving provision
(a)
Except as provided in subsection (b) of this section, prior to January 1,
1972, no tax may be imposed on any class of banks by or under authority of
any State legislation in effect prior to the enactment of this Act unless
(1) the tax was imposed on that class of banks prior to the enactment
of this Act, or
(2) the imposition of the tax is authorized by affirmative action of the
State legislature after the enactment of this Act.

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FEDERAL DEPOSIT INSURANCE CORPORATION
(b) The prohibiton of subsection (a) of this section does not apply to
(1) any sales tax or use tax complementary thereto,
(2) any tax (including a documentary stamp tax) on the execution,
delivery, or recordation of documents, or
(3) any tax on tangible personal property (not including cash or cur
rency), or for any license, registration, transfer, excise or other fee or tax
imposed on the ownership, use or transfer of tangible personal property,

imposed by a State which does not impose a tax, or an increased rate of tax,
in lieu thereof.
§ 4. Study by Board of Governors of the Federal Reserve System
(a) The Board of Governors of the Federal Reserve System (hereinafter
referred to as the “ Board") shall make a study to determine the probable
impact on the banking systems and other economic effects of the changes in
existing law to be made by section 2 of this Act governing income taxes,
intangible property taxes, so-called doing business taxes, and any other similar
taxes which are or may be imposed on banks. In conducting the study the
Board shall consult with the Secretary of the Treasury and appropriate State
banking and taxing authorities.
(b) The Board shall make a report of the results of its study to the Con
gress not later than December 31, 1970. The report shall include the Board's
recommendations as to what additional Federal legislation, if any, may be
needed to reconcile the promotion of the economic efficiency of the banking
systems of the Nation with the achievement of effectiveness and local auton
omy in meeting the fiscal needs of the States and their political subdivisions.
Approved December 24, 1969.
P u b lic L a w 9 1 -1 7 2
9 1 s t C o n g re s s , H .R . 1 3 2 7 0
D ecem ber 30, 1969

An Act
To reform the income tax laws.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assem bled ,
SECTION 1. SHORT TITLE, ETC.
(a) Short Title.— This Act may be cited as the “ Tax Reform Act of 1969".
❖

❖

TITLE III— MINIMUM TAX; ADJUSTMENTS
PRIMARILY AFFECTING INDIVIDUALS
SUBTITLE A— MINIMUM TAX
SEC. 301. MINIMUM TAX FOR TAX PREFERENCES.
(a) In General.— Subchapter A of chapter 1 (relating to determination of tax
liability) is amended by adding at the end thereof the following new part:
“ PART VI— MINIMUM TAX FOR TAX PREFERENCES
"S e c . 56. Im p o s itio n o f ta x .
“ Sec. 57. Ite m s o f ta x p re fe re n ce .
“ Sec. 58. R ules fo r a p p lic a tio n o f th is p a rt.

FEDERAL BANKING LEGISLATION— 1969

149

"SEC. 56. IMPOSITION OF TAX.
“ (a) In General.— In addition to the other taxes imposed by this chapter,
there is hereby imposed for each taxable year, with respect to the income of
every person, a tax equal to 10 percent of the amount (if any) by which—
“ (1) the sum of the items of tax preference in excess of $30,000, is
greater than
"(2 ) the taxes imposed by this chapter for the taxable year (computed
without regard to this part and without regard to the taxes imposed by
sections 531 and 541) reduced by the sum of the credits allowable under—
"(A ) section 33 (relating to foreign tax credit),
"(B ) section 37 (relating to retirement income), and
"(C) section 38 (relating to investment credit).
"(b ) Deferral of Tax Liability in Case of Certain Net Operating Losses.—
"(1 ) In General.— If for any taxable year a person—
"(A ) has a net operating loss any portion of which (under section
172) remains as a net operating loss carryover to a succeeding
taxable year, and
"(B ) has items of tax preference in excess of $30,000,
then an amount equal to the lesser of the tax imposed by subsection (a)
or 10 percent of the amount of the net operating loss carryover described
in subparagraph (A) shall be treated as tax liability not imposed for the
taxable year, but as imposed for the succeeding taxable year or years
pursuant to paragraph (2).
"(2 ) Year.of liability.— In any taxable year in which any portion of the
net operating loss carryover attributable to the excess described in para
graph (1)(B) reduces taxable income, the amount of tax liability described
in paragraph (1) shall be treated as tax liability imposed in such taxable
year in an amount equal to 10 percent of such reduction.
"(3 ) Priority of application.— For purposes of paragraph (2), if any por
tion of the net operating loss carryover described in paragraph (1)(A) is
not attributable to the excess described in paragraph (1)(B), such portion
shall be considered as being applied in reducing taxable income before
such other portion.
"SEC. 57. ITEMS OF TAX PREFERENCE.
"(a) In General.— For purposes of this part, the items of tax preference
are—
"(1 ) Excess investment interest.— The amount of the excess invest
ment interest for the taxable year (as determined under subsection (b)).
"(2 ) Accelerated depreciation on real property.— With respect to each
section 1250 property (as defined in section 1250 (c)), the amount by
which the deduction allowable for the taxable year for exhaustion, wear
and tear, obsolescence, or amortization exceeds the depreciation deduc
tion which would have been allowable for the taxable year had the tax
payer depreciated the property under the straight line method for each
taxable year of its useful life (determined without regard to section
167(k)) for which the taxpayer has held the property.
"(3 ) Accelerated depreciation on personal property subject to a net
lease.— With respect to each item of section 1245 property (as defined in
section 1245(a)(3)) which is the subject of a net lease, the amount by
which the deduction allowable for the taxable year for exhaustion, wear
and tear, obsolescence, or amortization exceeds the depreciation deduc

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FEDERAL DEPOSIT INSURANCE CORPORATION

tion which would have been allowable for the taxable year had the tax
payer depreciated the property under the straight line method for each
taxable year of its useful life for which the taxpayer has held the property.
“ (4) Amortization of certified pollution control facilities.— With respect
to each certified pollution control facility for which an election is in effect
under section 169, the amount by which the deduction allowable for the
taxable year under such section exceeds the depreciation deduction which
would otherwise be allowable under section 167.
"(5 ) Amortization of railroad rolling stock.— With respect to each unit
of railroad rolling stock for which an election is in effect under section
184, the amount by which the deduction allowable for the taxable year
under such section exceeds the depreciation deduction which would other
wise be allowable under section 167.
"(6 ) Stock options.— With respect to the transfer of a share of stock
pursuant to the exercise of a qualified stock option (as defined in section
422(b)) or a restricted stock option (as defined in section 424(b)), the
amount by which the fair market value of the share at the time of exer
cise exceeds the option price.
"(7 ) Reserves for losses on bad debts of financial institutions.— In the
case of a financial institution to which section 585 or 593 applies, the
amount by which the deduction allowable for the taxable year for a rea
sonable addition to a reserve for bad debts exceeds the amount that
would have been allowable had the institution maintained its bad debt
reserve for all taxable years on the basis of actual experience.
"(8 ) Depletion.— With respect to each property (as defined in section
614), the excess of the deduction for depletion allowable under section
611 for the taxable year over the adjusted basis of the property at the
end of the taxable year (determined without regard to the depletion
deduction for the taxable year).
“ (9) Capital gains.—
“ (A) Individuals.— In the case of a taxpayer other than a corpora
tion, an amount equal to one-half of the amount by which the net
long-term capital gain exceeds the net short-term capital loss for the
taxable year.
"(B ) Corporations.— In the case of a corporation, if the net long
term capital gain exceeds the net short-term capital loss for the tax
able year, an amount equal to the product obtained by multiplying
such excess by a fraction the numerator of which is the sum of the
normal tax rate and the surtax rate under section 11, minus the
alternative tax rate under section 1201(a), for the taxable year, and
the denominator of which is the sum of the normal tax rate and the
surtax rate under section 11 for the taxable year. In the case of a
corporation to which section 1201(a) does not apply, the amount
under this subparagraph shall be determined under regulations pre
scribed by the Secretary or his delegate in a manner consistent with
the preceding sentence.
Paragraph (1) shall apply only to taxable years beginning before January 1,
1972. Paragraphs (1) and (3) shall not apply to a corporation other than an
electing small business corporation (as defined in section 1371(b)) and a per
sonal holding company (as defined in section 542).
"(b ) Excess Investment Interest.—
"(1 ) In general.— For purposes of paragraph (1) of subsection (a), the
excess investment interest for any taxable year is the amount by which

FEDERAL BANKING LEGISLATION— 1969

151

the investment interest expense for the taxable year exceeds the net
investment income for the taxable year.
“ (2) Definitions.— For purposes of this subsection—
“ (A) Net investment income.— The term ‘net investment income’
means the excess of investment income over investment expenses.
“ (B) Investment income.— The term ‘investment income' means—
“ (i) the gross income from interest, dividends, rents, and
royalties,
“ (ii) the net short-term capital gain attributable to the dispo
sition of property held for investment, and
“ (iii) amounts treated under sections 1245 and 1250 as gain
from the sale or exchange of property which is neither a capital
asset nor property described in section 1231,
but only to the extent such income, gain, and amounts are not
derived from the conduct of a trade or business.
“ (C) Investment expenses.— The term ‘investment expenses’
means the deductions allowable under sections 164(a) (1) or (2),
166, 167, 171, 212, 243, 244, 245, or 611 directly connected with
the production of investment income. For purposes of this subpara
graph, the deduction allowable under section 167 with respect to any
property may be treated as the amount which would have been
allowable had the taxpayer depreciated the property under the
straight line method for each taxable year of its useful life for which
the taxpayer has held the property, and the deduction allowable
under section 611 with respect to any property may be treated as
the amount which would have been allowable had the taxpayer deter
mined the deduction under section 611 without regard to section
613 for each taxable year for which the taxpayer has held the prop
erty.
“ (D) Investment interest expense.— The term ‘investment interest
expense’ means interest paid or accrued on indebtedness incurred or
continued to purchase or carry property held for investment. For pur
poses of the preceding sentence, interest paid or accrued on indebt
edness incurred or continued in the construction of property to be
used in a trade or business shall not be treated as an investment
interest expense.
“ (3) Property subject to net lease.— For purposes of this subsection,
property which is subject to a net lease entered into after October 9,
1969, shall be treated as property held for investment, and not as prop
erty used in a trade or business.
“ (c) Net Leases.— For purposes of this section, property shall be considered
to be subject to a net lease for a taxable year if—
“ (1) for such taxable year the sum of the deductions with respect to
such property which are allowable solely by reason of section 162 is less
than 15 percent of the rental income produced by such property, or
“ (2) the lessor is either guaranteed a specified return or is guaranteed
in whole or in part against loss of income.
“ SEC. 58. RULES FOR APPLICATION OF THIS PART.
“ (a) Husband and Wife.— In the case of a husband or wife who files a sep
arate return for the taxable year, the $30,000 amount specified in section 56
shall be $15,000.

152

FEDERAL DEPOSIT INSURANCE CORPORATION

"(b ) Members of Controlled Groups.— In the case of a controlled group of
corporations (as defined in section 1563(a)), the $30,000 amount specified in
section 56 shall be divided equally among the component members of such
group unless all component members consent (at such time and in such
manner as the Secretary or his delegate prescribes by regulations) to an
apportionment plan providing for an unequal allocation of such amount.
"(c) Estates and Trusts.— In the case of an estate or trust—
"(1 ) the sum of the items of tax preference for any taxable year of the
estate or trust shall be apportioned between the estate or trust and the
beneficiaries on the basis of the income of the estate or trust allocable to
each, and
"(2 ) the $30,000 amount specified in section 56 applicable to such
estate or trust shall be reduced to an amount which bears the same ratio
to $30,000 as the portion of the sum of the items of tax preference allo
cated to the estate or trust under paragraph (1) bears to such sum.
"(d ) Electing Small Business Corporations and Their Shareholders.—
"(1 ) In general.— Except as provided in paragraph (2), the items of
tax preference of an electing small business corporation (as defined in
section 1371(b)) for each taxable year of the corporation shall be treated
as items of tax preference of the shareholders of such corporation, and,
except as provided in paragraph (2), shall not be treated as items of tax
preference of such corporation. The sum of the items so treated shall be
apportioned pro rata among such shareholders in a manner consistent
with section 1374(c)(1). For purposes of this paragraph, this part shall
be treated as applying to such corporation.
"(2 ) Certain capital gains.— If for a taxable year of an electing small
business corporation a tax is imposed on the income of such corporation
under section 1378, such corporation shall, notwithstanding the provisions
of section 1371(b)(1), be subject to the tax imposed by section 56, but
computed only with reference to the item of tax preference set forth in
section 57(a)(9)(B) to the extent attributable to gains subject to the tax
imposed by section 1378.
"(e) Participants in a Common Trusc Fund.— The items of tax preference of
a common trust fund (as defined in section 584(a)) for each taxable year of
the fund shall be treated as items of tax preference of the participants of such
fund and shall be apportioned pro rata among such participants. For purposes
of this subsection, this part shall be treated as applying to such fund.
" (f) Regulated Investment Companies, Etc.— In the case of a regulated
investment company to which part I of subchapter M applies or a real estate
investment trust to which part II of subchapter M applies—
"(1 ) the item of tax preference set forth in section 57(a)(9) shall not
be treated as an item of tax preference of such company or such trust
for each taxable year to the extent that such item is attributable to
amounts taken into account as income by the shareholders of such com
pany under section 852(b)(3), or by the shareholders or holders of bene
ficial interests of such trust under section 857(b)(3), and
"(2 ) the items of tax preference of such company or such trust for
each taxable year (other than the item of tax preference set forth in sec
tion 57(a)(9) and, in the case of a real estate investment trust, the item
of tax preference set forth in section 57(a)(2)) shall be treated as items
of tax preference of the shareholders of such company, or the sharehold
ers or holders of beneficial interests of such trust (and not as items of

FEDERAL BANKING LEGISLATION— 1969

153

tax preference of such company or such trust), in the same proportion
that the dividends (other than capital gain dividends) paid to each such
shareholder, or holder of beneficial interest, bears to the taxable income
of such company or such trust determined without regard to the deduc
tion for dividends paid.
"(g ) Tax Preferences Attributable to Foreign Sources.—
"(1 ) In general.— For purposes of section 56, the items of tax prefer
ence set forth in section 57(a) (other than in paragraphs (6) and (9) of
such section) which are attributable to sources within any foreign country
or posession of the United States shall be taken into account only to the
extent that such items reduce the tax imposed by this chapter (other
than the tax imposed by section 56) on income derived from sources
within the United States. For purposes of the preceding sentence, items
of tax preference shall be treated as reducing the tax imposed by this
chapter before items which are not items of tax preference.
"(2 ) Capital gains and stock options.— For purposes of section 56, the
items of tax preference set forth in paragraphs (6) and (9) of section
57(a) which are attributable to sources within any foreign country or
possession of the United States shall not be taken into account if, under
the tax laws of such country or possession—
"(A) in the case of the item set forth in paragraph (6) of section
57(a), preferential treatment is not accorded transfers of shares of
stock pursuant to stock options described in such paragraph, and
“ (B) in the case of the item set forth in paragraph (9) of section
57(a), preferential treatment is not accorded gain from the sale or
exchange of capital assets (or property treated as capital assets)."
(b) Technical and Conforming Amendments.—
(1) The table of parts for subchapter A of chapter 1 is amended by
adding at the end thereof the following new item:
" P a rt VI. M in im u m ta x fo r ta x p re fe re n c e s ."

(2) Section 5(a) (relating to cross references to other rates of tax on
individuals, etc.) is amended by adding at the end thereof the following
new paragraph:
“ (5) For minimum tax for tax preferences, see section 56."
(3) Section 12 (relating to cross references relating to tax on corpora
tions) is amended by adding at the end thereof the following new para
graph:
“ (8) For minimum tax for tax preferences, see section 56."
(4) Section 46(a)(3) (relating to liability for tax for determining
amount of investment credit) is amended by inserting “ section 56 (relat
ing to minimum tax for tax preferences)," before "section 531".
(5) Section 51(b)(1) (relating to adjusted tax for purposes of tax sur
charge) is amended by inserting "section 56," after "th is section,".
(6) Section 443 (relating to returns for a period of less than 12
months) is amended by redesignating subsection (d) as subsection (e)
and inserting after subsection (c) the following new subsection:
"(d ) Adjustment in Exclusion for Computing Minimum Tax for Tax Prefer
ences.— If a return is made for a short period by reason of subsection (a),
then the $30,000 amount specified in section 56 (relating to minimum tax for
tax preferences), modified as provided by section 58, shall be reduced to the
amount which bears the same ratio to such specified amount as the number of
days in the short period bears to 365."

FEDERAL DEPOSIT INSURANCE CORPORATION

154

(7) Section 453(c)(3) (relating to rule for change from accrual to
installment basis) is amended by inserting, “ other than by section 5 6 /'
after “ prior revenue laws)".
(8) Section 511 (relating to tax on unrelated business income of chari
table, etc., organizations) is amended by adding after subsection (c) (as
added by section 121(a)(3) of this Act) the following new subsection:
“ (d) Tax Preferences.— The tax imposed by section 56 shall apply to an
organization subject to tax under this section with respect to items of tax pref
erence which enter into the computation of unrelated business taxable
income."
(9) The last sentence of section 901(a) (relating to allowance of credit
for taxes of foreign countries and of possessions of the United States) is
amended by inserting “ against the tax imposed by section 56 (relating to
minimum tax for tax preferences)," after “ not be allowed".
(10) Section 1373(c) (relating to definition of undistributed taxable
income) is amended by striking out “ tax imposed by section 1378(a)"
and inserting in lieu thereof “ taxes imposed by sections 56 and 1378(a)".
(11) Section 1375(a)(3) (relating to reduction for taxes imposed) is
amended—
(A) by striking out “ tax imposed by section 1378" in the heading
of such section and inserting in lieu thereof “ taxes imposed"; and
(B) by striking out “ tax imposed by section 1378(a) on the
income o f" in the text of such section and inserting in lieu thereof
“ taxes imposed by sections 56 and 1378(a) on".
(12) Section 6015(c) (relating to definition of estimated tax) is
amended by inserting after “ taxable year" in paragraph (1) “ (other than
the tax imposed by section 5 6 )".
(13) Section 6654(f) (relating to definition of tax) is amended by
inserting after “ chapter 1" in paragraph (1) “ (other than by section 5 6 )".
(c)
Effective Date.— The amendments made by this section shall apply to
taxable years ending after December 31, 1969. In the case of a taxable year
beginning in 1969 and ending in 1970, the tax imposed by section 56 of the
Internal Revenue Code of 1954 (as added by subsection (a)) shall be an
amount equal to the tax imposed by such section (determined without regard
to this sentence) multiplied by a fraction—
(1) the numerator of which is the number of days in the taxable year
occurring after December 31, 1969, and
(2) the denominator of which is the number of days in the entire tax
able year.
SUBTITLE D— ACCUMULATION TRUSTS, MULTIPLE TRUSTS, ETC.
SEC. 331. TREATMENT OF EXCESS DISTRIBUTIONS BY TRUSTS.
(a)
In General.— Subpart D of part I of subchapter J of chapter 1 is
amended to read as follows:
“ SUBPART D— TREATMENT OF EXCESS DISTRIBUTIONS
BY TRUSTS
“ Sec.
“ Sec.
“ Sec.
“ Sec.
“ Sec.

665.
666.
667.
668.
669.

D e fin itio n s a p p lic a b le to s u b p a rt D.
A c c u m u la tio n d is tr ib u tio n a llo c a te d to p re c e d in g ye ars.
D en ia l o f re fu n d to tru s ts ; a u th o riz a tio n o f c re d it to b e n e fic ia rie s .
T re a tm e n t o f a m o u n ts deem ed d is trib u te d in p re c e d in g ye ars.
T re a tm e n t o f c a p ita l g a in deem ed d is trib u te d in p re c e d in g years.

FEDERAL BANKING LEGISLATION— 1969

155

“ SEC. 665. DEFINITIONS APPLICABLE TO SUBPART D.
“ (a) Undistributed Net Income.— For purposes of this subpart, the term
'undistributed net income' for any taxable year means the amount by which
the distributable net income of the trust for such taxable year exceeds the
sum of—
“ (1) the amounts for such taxable year specified in paragraphs (1) and
(2) of section 661(a), and
“ (2) the amount of taxes imposed on the trust attributable to such
distributable net income.
“ (b) Accumulation Distribution.— For purposes of this subpart, the term
‘accumulation distribution' means, for any taxable year of the trust, the
amount by which—
“ (1) the amounts specified in paragraph (2) of section 661(a) for such
taxable year, exceed
“ (2) distributable net income for such year reduced (but not below
zero) by the amounts specified in paragraph (1) of section 661(a).
“ (c) Special Rule Applicable to Distributions by Certain Foreign Trusts.— For
purposes of this subpart, any amount paid to a United States person which is
from a payor who is not a United States person and which is derived directly
or indirectly from a foreign trust created by a United States person shall be
deemed in the year of payment to have been directly paid by the foreign trust.
“ (d) Taxes Imposed on the Trust.— For purposes of this subpart, the term
'taxes imposed on the tru s t’ means the amount of the taxes which are
imposed for any taxable year of the trust under this chapter (without regard to
this subpart) and which, under regulations prescribed by the Secretary or his
delegate, are properly allocable to the undistributed portions of distributable
net income and gains in excess of losses from sales or exchanges of capital
assets. The amount determined in the preceding sentence shall be reduced by
any amount of such taxes deemed distributed under section 666 (b) and (c)
or 669 (d) and (e) to any beneficiary.
“ (e) Preceding Taxable Year.— For purposes of this subpart—
“ (1) in the case of a trust (other than a foreign trust created by a
United States person), the term 'preceding taxable year' does not include
any taxable year of the trust—
“ (A) which precedes by more than 5 years the taxable year of the
trust in which an accumulation distribution is made, if it is made in
a taxable year beginning before January 1, 1974,
“ (B) which begins before January 1, 1969, in the case of an
accumulation distribution made during a taxable year beginning after
December 31, 1973, or
“ (C) which begins before January 1, 1969, in the case of a capi
tal gain distribution made during a taxable year beginning after
December 31, 1968; and
“ (2) in the case of a foreign tru st created by a United States person,
such term does not include any taxable year of the trust to which this
part does not apply.
In the case of a preceding taxable year with respect to which a trust qualifies
(without regard to this subpart) under the provisions of subpart B, for pur
poses of the application of this subpart to such trust for such taxable year,
such trust shall, in accordance with regulations prescribed by the Secretary or
his delegate, be treated as a trust to which subpart C applies.
“ (f) Undistributed Capital Gain.— For purposes of this subpart, the term
‘undistributed capital gain’ means, for any taxable year of the trust beginning
after December 31, 1968, the amount by which—

FEDERAL DEPOSIT INSURANCE CORPORATION

156

“ (1) gains in excess of losses from the sale or exchange of capital
assets, to the extent that such gains are allocated to corpus and are not
(A) paid, credited, or required to be distributed to any beneficiary during
such taxable year, or (B) paid, permanently set aside, or used for the
purposes specified in section 642(c), exceed
"(2 ) the amount of taxes imposed on the trust attributable to such
gains.
For purposes of paragraph (1), the deduction under section 1202 (relating to
deduction for excess of capital gains over capital losses) shall not be taken
into account.
"(g) Capital Gain Distribution.— For purposes of this subpart, the term 'cap
ital gain distribution’ for any taxable year of the trust means, to the extent of
undistributed capital gain for such taxable year, that portion of—
“ (1) the excess of the amounts specified in paragraph (2) of section
661(a) for such taxable year over distributable net income for such year
reduced (but not below zero) by the amounts specified in paragraph (1)
of section 661(a), over
"(2 ) the undistributed net income of the trust for all preceding taxable
years.
"SEC. 666. ACCUMULATION
YEARS.

DISTRIBUTION ALLOCATED TO PRECEDING

"(a) Amount Allocated.— In the case of a trust which is subject to subpart
C, the amount of the accumulation distribution of such trust for a taxable year
shall be deemed to be an amount within the meaning of paragraph (2) of sec
tion 661(a) distributed on the last day of each of the preceding taxable years,
commencing with the earliest of such years, to the extent that such amount
exceeds the total of any undistributed net income for all earlier preceding tax
able years. The amount deemed to be distributed in any such preceding tax
able year under the preceding sentence shall not exceed the undistributed net
income for such preceding taxable year. For purposes of this subsection,
undistributed net income for each of such preceding taxable years shall be
computed without regard to such accumulation distribution and without regard
to any accumulation distribution determined for any succeeding taxable year.
"(b ) Total Taxes Deemed Distributed.— If any portion of an accumulation
distribution for any taxable year is deemed under subsection (a) to be an
amount within the meaning of paragraph (2) of section 661(a) distributed on
the last day of any preceding taxable year, and such portion of such distribu
tion is not less than the undistributed net income for such preceding taxable
year, the trust shall be deemed to have distributed on the last day of such
preceding taxable year an additional amount within the meaning of paragraph
(2) of section 661(a). Such additional amount shall be equal to the taxes
imposed on the trust for such preceding taxable year attributable to the undis
tributed net income. For purposes of this subsection, the undistributed net
income and the taxes imposed on the trust for such preceding taxable year
attributable to such undistributed net income shall be computed without
regard to such accumulation distribution and without regard to any accumula
tion distribution determined for any succeeding taxable year.
"(c) Pro Rata Portion of Taxes Deemed Distributed.— If any portion of an
accumulation distribution for any taxable year is deemed under subsection (a)
to be an amount within the meaning of paragraph (2) of section 661(a) dis
tributed on the last day of any preceding taxable year and such portion of the

FEDERAL BANKING LEGISLATION— 1969

157

accumulation distribution is less than the undistributed net income for such
preceding taxable year, the trust shall be deemed to have distributed on the
last day of such preceding taxable year an additional amount within the mean
ing of paragraph (2) of section 661(a). Such additional amount shall be equal
to the taxes imposed on the trust for such taxable year attributable to the
undistributed net income multiplied by the ratio of the portion of the accumu
lation distribution to the undistributed net income of the trust for such year.
For purposes of this subsection, the undistributed net income and the taxes
imposed on the trust for such preceding taxable year attributable to such
undistributed net income shall be computed without regard to the accumula
tion distribution and without regard to any accumulation distribution deter
mined for any succeeding taxable year.
"(d ) Rule When Information Is Not Available.— If adequate records are not
available to determine the proper application of this subpart to an amount dis
tributed by a trust, such amount shall be deemed to be an accumulation dis
tribution consisting of undistributed net income earned during the earliest pre
ceding taxable year of the trust in which it can be established that the trust
was in existence.
"SEC. 667. DENIAL OF REFUND TO TRUSTS; AUTHORIZATION OF CREDIT
TO BENEFICIARIES.
"(a) Denial of Refund to Trusts.— No refund or credit shall be allowed to a
trust for any preceding taxable year by reason of a distribution deemed to
have been made by such trust in such year under section 666 or 669.
"(b ) Authorization of Credit to Beneficiary.— There shall be allowed as a
credit (without interest) against the tax imposed by this subtitle on the benefi
ciary an amount equal to the amount of the taxes deemed distributed to such
beneficiary by the trust under sections 666 (b) and (c) and 669 (d) and (e)
during preceding taxable years of the trust on the last day of which the benefi
ciary was in being, reduced by the amount of the taxes deemed distributed to
such beneficiary for such preceding taxable years to the extent that such taxe^
are taken into account under sections 668(b)(1) and 669(b) in determining the
amount of the tax imposed by section 668.
"SEC. 668. TREATMENT OF AMOUNTS DEEMED DISTRIBUTED IN PRE
CEDING YEARS.
"(a ) General Rule.— The total of the amounts which are treated under sec
tions 666 and 669 as having been distributed by the trust in a preceding tax
able year shall be included in the income of a beneficiary of the trust when
paid, credited, or required to be distributed to the extent that such total would
have been included in the income of such beneficiary under section 662(a) (2)
and (b) if such total had been paid to such beneficiary on the last day of
such preceding taxable year. The tax imposed by this subtitle on a beneficiary
for a taxable year in which any such amount is included in his income shall be
determined only as provided in this section and shall consist of the sum of—
"(1 ) a partial tax computed on the taxable income reduced by an
amount equal to the total of such amounts, at the rate and in the manner
as if this section had not been enacted,
"(2 ) a partial tax determined as provided in subsection (b) of this sec
tion, and

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FEDERAL DEPOSIT INSURANCE CORPORATION

"(3 ) in the case of a beneficiary of a trust which is not required to
distribute all of its income currently, a partial tax determined as provided
in section 669.
For purposes of this subpart, a trust shall not be considered to be a trust
which is not required to distribute all of its income currently for any taxable
year prior to the first taxable year in which income is accumulated.
“ (b) Tax on Distribution.—
“ (1) Alternative Methods.— Except as provided in paragraph (2), the
partial tax imposed by subsection (a)(2) shall be the lesser of—
“ (A) the aggregate of the taxes attributable to the amounts
deemed distributed under section 666 had they been included in the
gross income of the beneficiary on the last day of each respective
preceding taxable year, or
“ (B) the tax determined by multiplying, by the number of preced
ing taxable years of the trust, on the last day of which an amount is
deemed under section 666(a) to have been distributed, the average
of the increase in tax attributable to recomputing the beneficiary’s
gross income for each of the beneficiary’s 3 taxable years immedi
ately preceding the year of the accumulation distribution by adding
to the income of each of such years an amount determined by divid
ing the amount deemed distributed under section 666 and required
to be included in income under subsection (a) by such number of
preceding taxable years of the trust,
less an amount equal to the amount of taxes deemed distributed to the
beneficiary under sections 666 (b) and (c).
“ (2) Special Rules.—
“ (A) If a beneficiary was not in existence on the last day of a pre
ceding taxable year of the trust with respect to which a distribution
is deemed made under section 666(a), the partial tax under either
paragraph (1)(A) or (1)(B) shall be computed as if the beneficiary
were in existence on the last day of such year on the basis that the
beneficiary had no gross income (other than amounts deemed distrib
uted to him under sections 666 and 669 by the same or other
trusts) and no deductions for such year.
“ (B) The partial tax shall not be computed under the provisions
of subparagraph (B) of paragraph (1) if, in the same prior taxable
year of the beneficiary in which any part of the accumulation d istri
bution is deemed under section 666(a) to have been distributed to
such beneficiary, some part of prior accumulation distributions by
each of two or more other trusts is deemed under section 666(a) to
have been distributed to such beneficiary.
“ (C) If the partial tax is computed under paragraph (1)(B), and
the amount of the undistributed net income deemed distributed in
any preceding taxable year of the trust is less than 25 percent of the
amount of the accumulation distribution divided by the number of
preceding taxable years to which the accumulation distribution is
allocated under section 666(a), the number of preceding taxable
years of the trust with respect to which an amount is deemed dis
tributed to a beneficiary under section 666(a) shall be determined
without regard to such year.
“ (3) Effect of other accumulation distributions and capital gain distri
butions.— In computing the partial tax under paragraph (1) for any bene
ficiary, the income of such beneficiary for each of his prior taxable years—

FEDERAL BANKING LEGISLATION— 1969

159

“ (A) shall include amounts previously deemed distributed to such
beneficiary in such year under section 666 or 669 as a result of
prior accumulation distributions or capital gain distributions (whether
from the same or another trust), and
“ (B) shall not include amounts deemed distributed to such benefi
ciary in such year under section 669 as a result of a capital gain
distribution from the same trust in the current year.
“ (4) Multiple distributions in the same taxable year.— In the case of
accumulation distributions made from more than one trust which are
includible in the income of a beneficiary in the same taxable year, the
distributions shall be deemed to have been made consecutively in which
ever order the beneficiary shall determine.
“ (5) Information requirements with respect to beneficiary.—
“ (A) Except as provided in subparagraph (B), the partial tax shall
not be computed under the provisions of paragraph (1)(A) unless
the beneficiary supplies such information with respect to his income,
for each taxable year with which or in which ends a taxable year of
the trust on the last day of which an amount is deemed distributed
under section 666(a), as the Secretary or his delegate prescribes by
regulations.
“ (B) If by reason of paragraph (2)(B) the provisions of para
graph (1)(B) do not apply, the determination of the amount of the
beneficiary’s income for a taxable year for which the beneficiary has
not supplied the information required under subparagraph (A) shall
be made by the Secretary or his delegate on the basis of information
available to him.
“ SEC. 669. TREATMENT OF CAPITAL GAIN
PRECEDING YEARS.

DEEMED DISTRIBUTED IN

“ (a) Amount Allocated.— In the case of a trust which is not required to dis
tribute all of its income currently, the amount of a capital gain distribution of
such trust for a taxable year shall be deemed to be an amount properly paid,
credited, or required to be distributed on the last day of each of the preceding
taxable years, commencing with the earliest of such years, to the extent that
such amount exceeds the total of any undistributed capital gain for all earlier
preceding taxable years. The amount deemed to be distributed in any such
preceding taxable year under the preceding sentence shall not exceed the
undistributed capital gain for such preceding taxable year. For purposes of this
subsection, undistributed capital gain for each of such preceding taxable years
shall be computed without regard to such capital gain distribution and without
regard to any capital gain distribution determined for any succeeding taxable
year.
“ (b) Tax on Distribution.— The partial tax imposed by section 668(a)(3)
shall be the lesser of—*
“ (1) the aggregate of the taxes attributable to the amounts deemed
distributed under this section, had such amounts been included in the
gross income of the beneficiary on the last day of each respective preced
ing taxable year, or
“ (2) the tax determined by multiplying by the number of preceding
taxable years of the trust, on the last day of which net gains from the
sale or exchange of capital assets are deemed under subsection (a) to
have been distributed, the average of the increase in tax attributable to

FEDERAL DEPOSIT INSURANCE CORPORATION

160

recomputing the beneficiary’s gross income for each of the beneficiary’s 3
taxable years immediately preceding the year of the capital gain distribu
tion by adding to the income of each of such years an amount deter
mined by dividing the total of the amounts deemed distributed under this
section and required to be included in income under section 668(a) by
such number of preceding taxable years of the trust,
less an amount equal to the amount of taxes deemed distributed to the bene
ficiary under subsections (d) and (e) which are attributable to the capital gain
distribution.
“ (c) Effect of Other Distributions; Special Rules, Etc.— In computing the
partial tax under subsection (b) for any beneficiary, the income of such benefi
ciary for each of his prior taxable years—
“ (1) shall include amounts previously deemed distributed to such ben
eficiary in such year under section 666 or 669 as a result of prior accu
mulation distributions or capital gain distributions (whether from the
same or another trust), and
“ (2) shall include amounts deemed distributed to such beneficiary in
such year under section 666 as a result of an accumulation distribution
from the same trust in the current year.
Under regulations prescribed by the Secretary or his delegate, rules sim ilar to
the rules provided by paragraphs (2), (4), and (5) of section 668(b) shall be
applied for purposes of this section.
“ (d) Total Taxes Deemed Distributed.— If any portion of a capital gain dis
tribution for any taxable year is deemed under subsection (a) to be an amount
properly paid, credited or required to be distributed on the last day of any pre
ceding taxable year, and such portion of such capital gain distribution is not
less than the undistributed capital gain for such preceding taxable year, the
trust shall be deemed to have properly distributed on the last day of such pre
ceding taxable year an additional amount. Such additional amount shall be
equal to the taxes imposed on the trust for such preceding taxable year a ttrib
utable to such undistributed capital gain. For purposes of this subsection, the
undistributed capital gain and the taxes imposed on the trust for such preced
ing taxable year attributable to such gain shall be computed without regard to
such capital gain distribution and without regard to any capital gain distribu
tion determined for any succeeding taxable year.
“ (e) Pro Rata Portion of Taxes Deemed Distributed.— If any portion of a
capital gain distribution for any taxable year is deemed under subsection (a)
to be an amount properly paid, credited, or required to be distributed on the
last day of any preceding taxable year and such portion of the capital gain dis
tribution is less than the undistributed capital gain for such preceding taxable
year, the trust shall be deemed to have properly distributed on the last day of
such preceding taxable year an additional amount. Such additional amount
shall be equal to the taxes imposed on the trust for such taxable year a ttrib u t
able to such undistributed capital gain multiplied by the ratio of the portion of
the capital gain distribution to the undistributed capital gain of the trust for
such year. For purposes of this subsection, the undistributed capital gain and
the taxes imposed on the trust for such preceding taxable year attributable to
such gain shall be computed without regard to the capital gain distribution
and without regard to any capital gain distribution determined for any succeed
ing taxable year.

FEDERAL BANKING LEGISLATION— 1969

161

“ (f) Character of Capital Gain.— For purposes of this section, the character
of the capital gain of a trust for any taxable year with respect to a beneficiary
shall be the same as it was with respect to the tru st."
(b) Distributions in First Sixty-Five Days of Taxable Year.— Section 663(b)
(2) (relating to limitation on sixty-five day rule) is amended to read as follows:
“ (2) Limitation.— Paragraph (1) shall apply with respect to any taxable
year of a trust only if the fiduciary of such trust elects, in such manner
and at such time as the Secretary or his delegate prescribes by regula
tions, to have paragraph (1) apply for such taxable year."
(c) Excessive Credits.— Section 6401(b) (relating to excessive credits) is
amended—
(1) by striking out “ Linder Sections 31 and 3 9 " in the heading of such
section;
(2) by striking out “ and 39 (relating" in the text of such section and
inserting in lieu thereof
39 (relating” ; and
(3) by inserting after “ lubricating o il)" in the text of such section “ and
667(b) (relating to taxes paid by certain tru sts)".
(d) Effective Date.—
(1) General Rule.— Except as otherwise provided in this subsection, the
amendments made by this section shall apply to taxable years beginning
after December 31, 1968.
(2) Exceptions.—
(A) Amounts paid, credited, or required to be distributed by a
trust (other than a foreign trust created by a United States person)
on or before the last day of a taxable year of the trust beginning
before January 1, 1974, shall not be deemed to be accumulation dis
tributions to the extent that such amounts were accumulated by a
trust in taxable years of such trust beginning before January 1,
1969, and would have been excepted from the definition of an accu
mulation distribution by reason of paragraphs (1), (2), (3), or (4) of
section 665(b) of the Internal Revenue Code of 1954, as in
effect on December 31, 1968, if they had been distributed on the last
day of the last taxable year of the trust beginning before January 1,
1969.
(B) For taxable years of a trust beginning before January 1, 1970,
the first sentence of section 666(a) of the Internal Revenue Code of
1954 (as amended by this section) shall not apply, and the amount
of the accumulation distribution of the trust for such taxable years
shall be deemed to be an amount within the meaning of paragraph
(2) of section 661(a) distributed on the last day of each of the pre
ceding taxable years to the extent that such amount exceeds the
total of any undistributed net income for any taxable years interven
ing between the taxable year with respect of which the accumulation
distribution is determined and such preceding taxable year.
(C) In the case of a trust which was in existence on December 31,
1969, section 669 of the Internal Revenue Code of 1954, as
amended by this section, shall not apply to capital gain distributions
made to a beneficiary before January 1, 1972. If the beneficiary
receives capital gain distributions from more than one such trust
before January 1, 1972, the preceding sentence shall apply to capi

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FEDERAL DEPOSIT INSURANCE CORPORATION
tal gain distributions from only one of such trusts, such one to be
designated by the taxpayer in accordance with regulations prescribed
by the Secretary or his delegate. For purposes of the preceding sen
tence, capital gain distributions received from a trust qualifying
under section 2056(b)(5) of the Internal Revenue Code of 1954 by
a surviving spouse (who is the beneficiary of only one such trust)
shall be disregarded.

SEC. 332. TRUST INCOME FOR BENEFIT OF A SPOUSE.
(a) Income for Benefit of Grantor's Spouse.—
(1) Paragraphs (1), (2), and (3) of section 677(a) (relating to income
for benefit of grantor) are amended by striking out "the grantor" each
place it appears and inserting in lieu thereof "the grantor or the grantor’s
spouse".
(2) Section 677(b) is amended by striking out "beneficiary" and insert
ing in lieu thereof "beneficiary (other than the grantor’s spouse)".
(b) Effective Date.— The amendments made by subsection (a) shall apply in
respect of property transferred in trust after October 9, 1969.

TITLE IV— ADJUSTMENTS PRIMARILY
AFFECTING CORPORATIONS
❖

SUBTITLE D— FINANCIAL INSTITUTIONS
SEC. 431. RESERVE FOR LOSSES ON LOANS; NET OPERATING LOSS CAR
RYBACKS.
(a)
Bad Debt Deductions of Financial Institutions.— Part I of subchapter H
of chapter 1 (relating to rules of general application to banking institutions) is
amended by adding at the end thereof the following new sections:
"SEC. 585, RESERVES FOR LOSSES ON LOANS OF BANKS.
"(a ) Institutions to Which Section Applies.— This section shall apply to the
following financial institutions:
"(1 ) any bank (as defined in section 581) other than an organization
to which section 593 applies, and
"(2 ) any corporation to which paragraph (1) would apply esxcept for
the fact that it is a foreign corporation, and in the case of any such fo r
eign corporation this section shall apply only with respect to loans out
standing the interest on which is effectively connected with the conduct
of a banking business within the United States.
"(b ) Addition to Reserves for Bad Debts.—
"(1 ) General Rule.— For purposes of section 166(c), the reasonable
addition to the reserve for bad debts of any financial institution to which
this section applies shall be an amount determined by the taxpayer which
shall not exceed the greater of—
"(A ) fo r taxable years beginning before 1988 the addition to the
reserve for losses on loans determined under the percentage method
as provided in paragraph (2), or
“ (B) the addition to the reserve fo r losses on loans determined
under the experience method as provided in paragraph (3).

FEDERAL BANKING LEGISLATION— 1969
“ (2) Percentage Method.— The
graph for a taxable year shall be
balance of the reserve for losses
year) to the allowable percentage
time, except that—

163

amount determined under this para
the amount necessary to increase the
on loans (at the close of the taxable
of eligible loans outstanding at such

“ (A) If the reserve for losses on loans at the close of the base
year is less than the allowable percentage of eligible loans outstand
ing at such time, the amount determined under this paragraph with
respect to the difference shall not exceed one-fifth of such differ
ence.
“ (B) If the reserve for losses on loans at the close of the base
year is not less than the allowable percentage of eligible loans out
standing at such time, the amount determined under this paragraph
shall be the amount necessary to increase the balance of the reserve
at the close of the taxable year to (i) the allowable percentage of eli
gible loans outstanding at such time, or (ii) the balance of the
reserve at the close of the base year, whichever is greater, but if the
amount of eligible loans outstanding at the close of the taxable year
is less than the amount of such loans outstanding at the close of
the base year, the amount determined under clause (ii) shall be the
amount necessary to increase the balance of the reserve at the close
of the taxable year to the amount which bears the same ratio to eli
gible loans outstanding at the close of the taxable year as the bal
ance of the reserve at the close of the base year bears to the
amount of eligible loans outstanding at the close of the base year.
For purposes of this paragraph, the term 'allowable percentage' means
1.8 percent for taxable years beginning before 1976; 1.2 percent fo r tax
able years beginning after 1975 but before 1982; and 0.6 percent fo r tax
able years beginning after 1981. The amount determined under this para
graph shall not exceed 0.6 percent of eligible loans outstanding at the
close of the taxable year or an amount sufficient to increase the reserve
for losses on loans to 0.6 percent of eligible loans outstanding at the
close of the taxable year, whichever is greater. For purposes of this para
graph, the term 'base year' means: for taxable years beginning before
1976, the last taxable year beginning on or before July 11, 1969, for tax
able years beginning after 1975 but before 1982, the last taxable year
beginning before 1976, and for taxable years beginning after 1981, the
last taxable year beginning before 1982; except that for purposes of subparagraph (A) such term means the last taxable year before the most
recent adoption of the percentage method, if later.
“ (3) Experience method.— The amount determined under this para
graph for a taxable year shall be the amount necessary to increase the
balance of the reserve for losses on loans (at the close of the taxable
year) to the greater of—
“ (A) the amount which bears the same ratio to loans outstanding
at the close of the taxable year as (i) the total bad debts sustained
during the taxable year and the 5 preceding taxable years (or, with
the approval of the Secretary or his delegate, a shorter period),
adjusted for recoveries of bad debts during such period, bears to (ii)

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FEDERAL DEPOSIT INSURANCE CORPORATION
the sum of the loans outstanding at the close of such 6 or fewer
taxable years, or
“ (B) the lower of—
“ (i) the balance of the reserve at the close of the base year,
or
“ (ii) if the amount of loans outstanding at the close of the
taxable year is less than the amount of loans outstanding at the
close of the base year, the amount which bears the same ratio
to loans outstanding at the close of the taxable year as the bal
ance of the reserve at the close of the base year bears to the
amount of loans outstanding at the close of the base year.
For purposes of this paragraph, the base year shall be the last taxable
year before the most recent adoption of the experience method, except
that for taxable years beginning after 1987 the base year shall be the last
taxable year beginning before 1988.
“ (4) Regulations; definition of eligible loan, etc.— The Secretary or his
delegate shall define the terms ‘loan’ and 'eligible loan' and prescribe
such regulations as may be necessary to carry out the purposes of this
section; except that the term 'eligible loan’ shall not include—
“ (A) a loan to a bank (as defined in section 581),
“ (B) a loan to a domestic branch of a foreign corporation to
which subsection (a)(2) applies,
“ (C) a loan secured by a deposit (i) in the lending bank, or (ii) in
an institution described in subparagraph (A) or (B) if the lending
bank has control over withdrawal of such deposit,
“ (D) a loan to or guaranteed by the United States, a possession
or instrum entality thereof, or a State or a political subdivision
thereof,
“ (E) a loan evidenced by a security as defined in section
165(g)(2)(C),
“ (F) a loan of Federal funds, and
“ (G) commercial paper, including short-term
which may be purchased on the open market.

promissory

notes

SEC. 432. MUTUAL SAVINGS BANKS, ETC.
(a)
Reserve for Losses on Loans.— Section 593(b) (relating to addition to
reserves for bad debts) is amended—
(1) by striking out subparagraph (A) of paragraph (1) and inserting in
lieu thereof the following:
“ (A) the amount determined to be a reasonable addition to the
reserve for losses on nonqualifying loans, computed in the same
manner as is provided with respect to additions to the reserves for
losses on loans of banks under section 585(b)(3), plus".
(2) by striking out paragraphs (2), (3), (4), and (5) and inserting in
lieu thereof the following:
“ (2) Percentage of taxable income method.—
“ (A) In general.— Subject to subparagraphs (B), (C), and (D), the
amount determined under this paragraph for the taxable year shall

FEDERAL BANKING LEGISLATION— 1969

165

be an amount equal to the applicable percentage of the taxable
income for such year (determined under the following table):
" F o r a ta x a b le y e a r b e g in n in g in —

The a p p lic a b le p e rc e n ta g e u n d e r
th is p a ra g ra p h s h a ll be—

1969
60 percent.
1970
........................ 57 percent.
................................................................................ 54 percent.
1971
1972
51 percent.
1973
49 percent.
1974
.......................................................................... 47 percent.
1975
............................................ 45 percent.
1976
43 percent.
1977
42 percent.
1978
41 percent.
1979 or thereafter ............................................................................... 40 percent.
“ (B) Reduction of applicable percentage in certain cases.— If, for
the taxable year, the percentage of the assets of a taxpayer
described in subsection (a), which are assets described in section
7701(a)(19)(C), is less than—
“ (i) 82 percent of the total assets in the case of a taxpayer
other than a mutual savings bank, the applicable percentage for
such year provided by subparagraph (A) shall be reduced by %
of 1 percentage point for each 1 percentage point of such d if
ference, or
“ (ii) 72 percent of the total assets in the case of a mutual
savings bank, the applicable percentage for such year provided
by subparagraph (A) shall be reduced by i y 2 percentage points
for each 1 percentage point of such difference.
If, for the taxable year, the percentage of the assets of such tax
payer which are assets described in section 7701(a)(19)(C) is less
than 60 percent (50 percent for a taxable year beginning before
1973 in the case of a mutual savings bank), this paragraph shall not
apply.
“ (C) Reduction for amounts referred to in paragraph (1)(A ).— The
amount determined under subparagraph (A) shall be reduced by that
portion of the amount referred to in paragraph (1)(A) for the taxable
year (not in excess of 100 percent) which bears the same ratio to
such amount as (i) 18 percent (28 percent in the case of mutual
savings banks) bears to (ii) the percentage of the assets of the tax
payer for such year which are not assets described in section
7701(a)(19)(C).
“ (D) Overall limitation on paragraph.— The amount determined
under this paragraph shall not exceed the amount necessary to
increase the balance at the close of the taxable year of the reserve
for losses on qualifying real property loans to 6 percent of such
loans outstanding at such time.
“ (E) Computation of taxable income.— For purposes of this para
graph, taxable income shall be computed—
“ (i) by excluding from gross income any amount included
therein by reason of subsection (f),
“ (ii) without regard to any deduction allowable for any addi
tion to the reserve for bad debts,

166

FEDERAL DEPOSIT INSURANCE CORPORATION

“ (iii) by excluding from gross income an amount equal to
the net gain for the taxable year arising from the sale or
exchange of stock of a corporation or of obligations the interest
on which is excludable from gross income under section 103,
“ (iv) by excluding from gross income an amount equal to the
lesser of % of the net long-term capital gain for the taxable
year or % of the net long-term capital gain for the taxable year
from the sale or exchange of property other than property
described in clause (iii), and
"(v ) by excluding from gross income dividends with respect
to which a deduction is allowable by part VIII of subchapter Bf
reduced by an amount equal to the applicable percentage
(determined under subparagraphs (A) and (B)) of the dividends
received deduction (determined without regard to section 596)
for the taxable year.
"(3 ) Percentage method.— The amount determined under this para
graph to be a reasonable addition to the reserve for losses on qualifying
real property loans shall be computed in the same manner as is provided
with respect to additions to the reserves for losses on loans of banks
under section 585(b)(2), reduced by the amount referred to in paragraph
(1)(A) for the taxable year.
“ (4) Experience method.— The amount determined under this para
graph for the taxable year shall be computed in the same manner as is
provided with respect to additions to the reserves for losses on loans of
banks under section 585(b)(3).
"(5 ) Determination of reserve for percentage method.— For purposes
of paragraph (3), the amount deemed to be the balance of the reserve
for losses on loans at the beginning of the taxable year shall be the total
of the balances at such time of the reserve for losses on nonqualifying
loans, the reserve for losses on qualifying real property loans, and the
supplemental reserve for losses on loans.”
(b) Certain Corporate Acquisitions.— Section 593(f)(1) (relating to distribu
tions to shareholders) is amended by adding at the end thereof the following
new sentence: “ This paragraph shall not apply to any transaction to which sec
tion 381 (relating to carryovers in certain corporate acquisitions) applies."
(c) Investment Standards.— Section 7701(a)(19) (defining domestic building
and loan association) is amended to read as follows:
“ (19) Domestic building and loan association.— The term 'domestic
building and loan association’ means a domestic building and loan asso
ciation, a domestic savings and loan association, and a Federal savings
and loan association—
“ (A) which either (i) is an insured institution within the meaning
of section 401(a) of the National Housing Act (12 U.S.C., sec.
1724(a)), or (ii) is subject by law to supervision and examination by
State or Federal authority having supervision over such associations;
“ (B) the business of which consists principally of acquiring the
savings of the public and investing in loans; and
“ (C) at least 60 percent of the amount of the total assets of
which (at the close of the taxable year) consists of—
“ (i) cash,
“ (ii) obligations of the United States or of a State or political
subdivision thereof, and stock or obligations of a corporation

FEDERAL BANKING LEGISLATION— 1969

167

which is an instrum entality of the United States or of a State or
political subdivision thereof, but not including obligations the
interest on which is excludable from gross income under section
103,
“ (iii) certificates of deposit in, or obligations of, a corpora
tion organized under a State law which specifically authorizes
such corporation to insure the deposits or share accounts of
member associations,
“ (iv) loans secured by a deposit or share of a member,
"(v ) loans (including redeemable ground rents, as defined in
section 1055) secured by an interest in real property which is
(or, from the proceeds of the loan, will become) residential real
property or real property used primarily for church purposes,
loans made for the improvement of residential real property or
real property used primarily for church purposes, provided that
for purposes of this clause, residential real property shall
include single or m ultifam ily dwellings, facilities in residential
developments dedicated to public use or property used on a
nonprofit basis for residents, and mobile homes not used on a
transient basis,
“ (vi) loans secured by an interest in real property located
within an urban renewal area to be developed for predominantly
residential use under an urban renewal plan approved by the
Secretary of Housing and Urban Development under part A or
part B of title I of the Housing Act of 1949, as amended, or
located within any area covered by a program eligible for assist
ance under section 103 of the Demonstration Cities and Metro
politan Development Act of 1966, as amended, and loans made
for the improvement of any such real property,
“ (vii) loans secured by an interest in educational, health, or
welfare institutions or facilities, including structures designed or
used primarily for residential purposes for students, residents,
and persons under care, employees, or members of the staff of
such institutions or facilities,
“ (viii) property acquired through the liquidation of defaulted
loans described in clause (v), (vi), or (vii),
“ (ix) loans made for the payment of expenses of college or
university education or vocational training, in accordance with
such regulations as may be prescribed by the Secretary or his
delegate, and
“ (x) property used by the association in the conduct of the
business described in subparagraph (B).
At the election of the taxpayer, the percentage specified in this subparagraph shall be applied on the basis of the average assets out
standing during the taxable year, in lieu of the close of the taxable
year, computed under regulations prescribed by the Secretary or his
delegate. For purposes of clause (v), if a m ultifam ily structure secur
ing a loan is used in part for nonresidential purposes, the entire loan
is deemed a residential real property loan if the planned residential
use exceeds 80 percent of the property's planned use (determined as
of the time the loan is made). For purposes of clause (v), loans
made to finance the acquisition or development of land shall be

168

FEDERAL DEPOSIT INSURANCE CORPORATION

deemed to be loans secured by an interest in residential real prop
erty if, under regulations prescribed by the Secretary or his delegate,
there is reasonable assurance that the property will become residen
tial real property within a period of 3 years from the date of acquisi
tion of such land; but this sentence shall not apply for any taxable
year unless, within such 3-year period, such land becomes residential
real property.”
(d) Conforming Amendments.— Section 7701(a)(32) (defining cooperative
bank) is amended—
(1) by striking out subparagraph (B) and inserting in lieu thereof the
following;
“ (B) meets the requirements of subparagraphs (B) and (C) of
paragraph (19) of this subsection (relating to definition of domestic
building and loan association).” , and
(2) by striking out the third sentence thereof.
(e) Effective Date.— The amendments made by this section shall be effec
tive for taxable years beginning after July 11, 1969.
SEC. 433. TREATMENT OF BONDS, ETC., HELD BY FINANCIAL INSTITU
TIONS.
(a) Gain on Securities Held by Financial Institutions.— Subsection (c) of
section 582 (relating to bad debt and loss deduction with respect to securities
held by banks) is amended by striking out such subsection and inserting the
following in lieu thereof:
“ (c) Bond, Etc., Losses and Gains of Financial Institutions.—
“ (1) General rule.— For purposes of this subtitle, in the case of a finan
cial institution to which section 585, 586, or 593 applies, the sale or
exchange of a bond, debenture, note, or certificate or other evidence of
indebtedness shall not be considered a sale or exchange of a capital
asset.
“ (2) Transitional rule for banks.— In the case of a bank, if the net
long-term capital gains of the taxable year from sales or exchanges of
qualifying securities exceed the net short-term capital losses of the tax
able year from such sales or exchanges, such excess shall be considered
as gain from the sale of a capital asset held for more than 6 months to
the extent it does not exceed the net gain on sales and exchanges
described in paragraph (1).
“ (3) Special rules.-— For purposes of this subsection—
“ (A) The term ‘qualifying security' means a bond, debenture,
note, or certificate or other evidence of indebtedness held by a bank
on July 11, 1969.
“ (B) The amount treated as capital gain or loss from the sale or
exchange of a qualifying security shall be determined by multiplying
the amount of capital gain or loss from the sale or exchange of such
security (determined without regard to this subsection) by a fraction,
the numerator of which is the number of days before July 12, 1969,
that such security was held by the bank, and the denominator of
which is the number of days the security was held by the bank.”
(b) Conforming Amendment.— Paragraph (1) of section 1243 (relating to
loss of a small business investment company) is amended to read as follows:
“ (1) a loss is on stock received pursuant to the conversion privilege of
convertible debentures acquired pursuant to section 304 of the Small
Business Investment Act of 1958, and".

FEDERAL BANKING LEGISLATION— 1969

169

(c) Clerical Amendment.— The heading for section 582 is amended to read
as follows:
"SEC. 582. BAD DEBTS, LOSSES, AND GAINS WITH RESPECT TO SECURI
TIES HELD BY FINANCIAL INSTITUTIONS.”
(d) Effective Date.—
(1) In general.— The amendments made by this section shall apply to
taxable years beginning after July 11, 1969.
(2) Election for small business investment companies and business
development corporations.— Notwithstanding paragraph (1), in the case of
a financial institution described in section 586(a) of the Internal Revenue
Code of 1954, the amendments made by this section shall not apply for
its taxable years beginning after July 11, 1969, and before July 11, 1974,
unless the taxpayer so elects at such time and in such manner as shall
be prescribed by the Secretary of the Treasury or his delegate. Such elec
tion shall be irrevocable and shall apply to all such taxable years.
SEC. 434. LIMITATION ON DEDUCTION
MUTUAL SAVINGS BANKS, ETC.

FOR DIVIDENDS RECEIVED BY

(a) Special Limitation.— Part II of subchapter H of chapter 1 is amended by
adding at the end thereof the following new section:
"SEC. 596. LIMITATION ON DIVIDENDS RECEIVED DEDUCTION.
"In the case of an organization to which section 593 applies and which
computes additions to the reserve for losses on loans for the taxable year
under section 593(b)(2), the total amount allowed under sections 243, 244,
and 245 (determined without regard to this section) for the taxable year as a
deduction with respect to dividends received shall be reduced by an amount
equal to the applicable percentage for such year (determined under subpara
graphs (A) and (B) of section 593(b)(2)) of such total amount.”
(b) Technical and Clerical Amendments.—
(1) Section 246 (relating to rules applying to deductions for dividends
received) is amended by adding at the end thereof the following new
subsection:
"(d ) Cross Reference.—
“ For sp e cia l ru le re la tin g
a p p lie s, see s e ctio n 596.”

m u tu a l

s a vin g s

ban ks,

etc.,

w h ic h

s e c tio n

593

(2) The table of sections for part II of subchapter H of chapter 1 is
amended by adding at the end thereof:
“ Sec. 596. L im ita tio n on d iv id e n d s received d e d u c tio n ."

(c) Effective Date.— The amendments made by this section shall apply to
taxable years beginning after July 11, 1969.
SEC. 435. FOREIGN DEPOSITS IN UNITED STATES BANKS.
(a) Income From Sources Within the United States.—
(1) Effective with respect to amounts paid or credited after December 31,
1969, subparagraphs (C) and (D) of section 861(a)(1) (relating to
interest) are each amended by striking out "a fte r December 31, 1972,” .
(2) Section 861(c) (relating to interest on deposits, etc.) is amended
by striking out "1 9 7 2 ” and inserting in lieu thereof "1 9 7 5 ” .
(b) Property Within the United States.— The second sentence of section
2104(c) (relating to debt obligations) is amended by striking out "December 31,
1972” and inserting in lieu thereof "December 31, 1969” .
Approved December 30, 1969, 9:30 a.m.

170

FEDERAL DEPOSIT INSURANCE CORPORATION

RULES AND REGULATIONS OF THE
CORPORATION—1969
TITLE 12— BANKS AND BANKING
CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION
SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY
PART 330— CLARIFICATION AND DEFINITION OF DEPOSIT
INSURANCE COVERAGE
Public Unit Accounts; Political Subdivision
Effective January 8, 1969, § 330.8 of the rules and regulations of the Fed
eral Deposit Insurance Corporation (12 CFR Part 330) is amended to add a
new paragraph (c) to read as follows:
§ 330.8

Public unit accounts.

(c)
Political subdivision. The term “ political subdivision" includes any subdi
vision of a public unit, as defined in section 3(m ) of the Federal Deposit Insur
ance Act, or any principal department of such public unit, (1) the creation of
which subdivision or department has been expressly authorized by State stat
ute, (2) to which some functions of government have been delegated by State
statute, and (3) to which funds have been allocated by statute or ordinance
for its exclusive use and control. It also includes drainage, irrigation, naviga
tion, improvement, levee, sanitary, school or power districts, and bridge or port
authorities and other special districts created by State statute or compacts
between the States. Excluded from the term are subordinate or nonautonomous divisions, agencies, or boards within principal departments.
*
*
*
*
*
[F.R. Doc. 69-198; Filed, Jan. 7, 1969; 8:47 a.m.]

CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION
SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY
PART 326— MINIMUM SECURITY DEVICES AND PROCEDURES FOR
INSURED NONMEMBER BANKS
Effective January 16, 1969, a new Part 326 of the rules and regulations of
the Federal Deposit Insurance Corporation (12 CFR Part 326) is added to read
as follows:
PART 326— MINIMUM SECURITY DEVICES AND PROCEDURES FOR
INSURED NONMEMBER BANKS
Sec.
326.0
326.1
326.2
326.3
326.4
326.5

Scope of part.
Definitions.
Designation of security officer.
Security devices.
Security procedures.
Filing by insured State nonmember banks of reports with the Corpora
tion.
Corrective action.
Penalty provision.

326.6
326.7

RULES AND REGULATIONS OF THE CORPORATION
Appendix A

Minimum Standards for Security Devices.

Appendix B

Proper Employee Conduct During and After a Robbery.

171

AUTHORITY: The provisions of this Part 326 issued under sec. 3, 82 Stat.
295. Interpret or apply sec. 1, 2, 3, 4, 5, 82 Stat. 294, 295.
§ 326.0

Scope of part.

Pursuant to the authority conferred upon the Federal Deposit Insurance Cor
poration by section 3 of the Bank Protection Act of 1968 (82 Stat. 295), the
regulations contained in this part—
(a) establish minimum standards with which each insured State nonmember
bank must comply with respect to the installation, maintenance, and operation
of security devices and procedures to discourage robberies, burglaries, and lar
cenies and to assist in the identification and apprehension of persons who
comm it such acts;
(b) establish time limits within which each such bank shall comply with
such standards; and
(c) require the submission of reports with respect to the installation, main
tenance, and operation of security devices and procedures.
§ 326.1

Definitions.

For the purposes of this part—
(a) The term “ insured State nonmember bank" means any bank (including
any mutual savings bank), incorporated under the laws of any State of the
United States, any Territory of the United States, Puerto Rico, Guam, or the
Virgin Islands, that is not a member of the Federal Reserve System but the
deposits of which are insured in accordance with the provisions of the Federal
Deposit Insurance Act, as amended (12 U.S.C. 1811-1832), but the term does
not include any bank located in the District of Columbia.
(b) The term “ banking hours" means the time during which a banking
office is open for the normal transaction of business with the banking public.
(c) The term “ banking office" includes the main office of any insured State
nonmember bank and any branch thereof.
(d) The term “ branch" includes any branch bank, branch office, branch
agency, additional office, or any branch place of business located in any State
of the United States or in any Territory of the United States, Puerto Rico,
Guam, or the Virgin Islands at which deposits are received or checks paid or
money lent.
(e) The term “ Board of Directors" means the Board of Directors of the Fed
eral Deposit Insurance Corporation.
(f) The term “ teller’s station or window" means a location in a banking
office at which bank customers routinely conduct transactions with the bank
which involve the exchange of funds, including a walk-up or drive-in teller's
station or window.
§ 326.2

Designation of security officer.

On or before February 15, 1969, or within 30 days after the bank becomes
a member of the Federal Deposit Insurance Corporation, the board of directors
of each insured State nonmember bank shall designate an officer or other
employee of the bank who shall be charged, subject to supervision by the
bank’s board of directors, with responsibility for the installation, maintenance,
and operation of security devices and for the development and administration

172

FEDERAL DEPOSIT INSURANCE CORPORATION

of a security program which equal or exceed the standards prescribed by this
part.
§ 326.3

Security devices.

(a) Installation, maintenance, and operation of appropriate security devices.
Before January 1, 1970, or within 30 days after the bank becomes a member
of the Federal Deposit Insurance Corporation, the security officer of each
insured State nonmember bank, under such directions as shall be given him
by the bank’s board of directors, shall survey the need for security devices in
each of the bank’s banking offices and shall provide for the installation, main
tenance, and operation, in each such office, of—
(1) a lighting system for illuminating, during the hours of darkness, the
area around the vault, if the vault is visible from outside the banking office;
(2) tamper-resistant locks on exterior doors and exterior windows designed
to be opened;
(3) an alarm system or other appropriate device for promptly notifying the
nearest responsible law enforcement officers of an attempted or perpetrated
robbery or burglary; and
(4) such other devices as the security officer, after seeking the advice of
law enforcement officers, shall determine to be appropriate for discouraging
robberies, burglaries, and larcenies and for assisting in the identification and
apprehension of persons who comm it such acts.
(b) Considerations relevant to determining appropriateness. For the pur
poses of subparagraph (4) of paragraph (a) of this section, considerations rel
evant to determining appropriateness include, but are not limited to—
(1) the incidence of crimes against the particular banking office a n d /o r
against financial institutions in the area in which the banking office is or will
be located;
(2) the amount of currency or other valuables exposed to robbery, burglary,
or larceny;
(3) the distance of the banking office from the nearest responsible law
enforcement officers and the time required for such law enforcement officers
ordinarily to arrive at the banking office;
(4) the cost of the security devices;
(5) other security measures in effect at the banking office; and
(6) the physical characteristics of the banking office structure and its sur
roundings.
(c) Implementation. It is appropriate for banking offices in areas with a high
incidence of crime to install many devices which would not be practicable
because of costs for small banking offices in areas substantially free of crimes
against financial institutions. Each insured State nonmember bank shall con
sider the appropriateness of installing, maintaining, and operating security
devices which are expected to give a general level of bank protection at least
equivalent to the standards described in Appendix A of this part. In any case
in which (on the basis of the factors listed in paragraph (b) of this section or
similar ones, the use of other measures, or the decision that technological
change allows the use of other measures judged to give equivalent protection)
it is decided not to install, maintain, and operate devices at least equivalent to
these standards, the bank shall preserve in its records a statement of the rea
sons for such decision.

RULES AND REGULATIONS OF THE CORPORATION

173

§ 326.4 Security procedures.
(a) Development and administration. On or before July 15, 1969, or within
30 days after the bank becomes a member of the Federal Deposit Insurance
Corporation, each insured State nonmember bank shall develop and provide for
the administration of a security program to protect each of its banking offices
from robberies, burglaries, and larcenies and to assist in the identification and
apprehension of persons who comm it such acts. The security program shall be
reduced to writing, approved by the bank's board of directors, and retained by
the bank in such form as will readily permit determination of its adequacy and
effectiveness.
(b) Contents of security programs. Such security programs shall—
(1) provide for establishing a schedule for the inspection, testing, and ser
vicing of all security devices installed in each banking office; provide for desig
nating the officer or other employee who shall be responsible for seeing that
such devices are inspected, tested, serviced, and kept in good working order;
and require such officer or other employee to keep a record of such inspec
tions, testings, and servicings;
(2) require that each banking office's currency be, kept at a reasonable m ini
mum and provide procedures for safely removing excess currency;
(3) require that the currency at each teller’s station or window be kept at a
reasonable minimum and provide procedures for safely removing excess cur
rency and other valuables to a locked safe, vault, or other protected place;
(4) require that the currency at each teller's station or window include
“ bait" money, i.e., used Federal Reserve notes the denominations, banks of
issue, serial numbers, and series years of which are recorded, verified by a
second officer or employee, and kept in a safe place;
(5) require that all currency, negotiable securities, and sim ilar valuables be
kept in a locked vault or safe during nonbusiness hours, that the vault or safe
be opened at the latest time practicable before banking hours, and that the
vault or safe be locked at the earliest tim e practicable after banking hours;
(6) provide, where practicable, for designation of a person or persons to
open each banking office and require him or them to inspect the premises, to
ascertain that no unauthorized persons are present, and to signal other
employees that the premises are safe before permitting them to enter;
(7) provide for designation of a person or persons who will assure that all
security devices are turned on and are operating during the periods in which
such devices are intended to be used;
(8) provide for designation of a person or persons to inspect, after the clos
ing hour, all areas of each banking office where currency, negotiable securities,
or sim ilar valuables are normally handled or stored in order to assure that
such currency, securities, and valuables have been put away, th a t no unauthor
ized persons are present in such areas, and that the vault or safe and all
doors and windows are securely locked; and
(9) provide for training, and periodic retraining, of employees in their
responsibilities under the security program, including the proper use of secu
rity devices and proper employee conduct during and after a robbery, in
accordance with the procedures listed in Appendix B of this part.
§ 326.5
ration.

Filing by insured State nonmember banks of reports with the Corpo

(a)
Compliance reports. As of the last business day in June of 1970, and as
of the last business day in June of each calendar year thereafter, each insured

174

FEDERAL DEPOSIT INSURANCE CORPORATION

State nonmember bank shall file with the Supervising Examiner of the Federal
Deposit Insurance Corporation District in which its main office is located a
statement certifying to its compliance with the requirements of this part. The
statement shall be dated and signed by the president, or cashier, or other
managing officer of the bank and may be in a form substantially as follows:
“ I hereby certify, to the best of my knowledge and belief, that this bank
has developed and administers a security program that equals or exceeds
the standards prescribed by § 326.4 of the rules and regulations of the Fed
eral Deposit Insurance Corporation; that such security program has been
reduced to writing, approved by the bank's board of directors, and retained
by the bank in such form as will readily perm it determination of its ade
quacy and effectiveness; and that the bank security officer, after seeking the
advice of law enforcement officers, has provided for the installation, mainte
nance, and operation of appropriate security devices, as prescribed by
§ 326.3 of the rules and regulations of the Federal Deposit Insurance Corpo
ration, in each of the bank's banking offices."
(b) Records of consultation. The bank's files shall contain a readily avail
able record showing the name(s) and title(s) of the law enforcement officer(s)
whose advice the security officer sought prior to the installation, maintenance,
and operation of appropriate security devices.
(c) Reports on security devices. On or before March 15, 1969, and upon
such other occasions as the Board of Directors may specify, each insured
State nonmember bank shall file with the Supervising Examiner of the Federal
Deposit Insurance Corporation District in which it is located a report on
Form P - l (in duplicate) for each of its offices that is subject to this part.
(d) External crime reports. Each time a robbery, burglary, or nonbank
employee larceny is perpetrated or attempted at a banking office operated by
an insured State nonmember bank, the bank shall, within a reasonable time,
file a report in conformity with the requirements of Form P-2. One copy of
such report shall be filed with the appropriate State supervisory authority and
three copies of such report shall be filed with the Supervising Examiner of the
Federal Deposit Insurance Corporation District in which the main office of the
reporting bank is located.
(e) Special reports. Each insured State nonmember bank shall file such
other reports as the Board of Directors or its designee may require.
§ 326.6

Corrective action.

Whenever the Board of Directors or its designee determines that the security
devices or procedures used by an insured State nonmember bank are deficient
in meeting the requirements of this part, or that the requirements of this part
should be varied in the circumstances of a particular banking office, it may
take or require the bank to take necessary corrective action. If the Board of
Directors or its designee determines that such corrective action is appropriate
or necessary, the bank will be so notified and will be furnished a statement of
what the bank must do to comply with the requirements of this part.
§ 326.7

Penalty provision.

Pursuant to section 5 of the Bank Protection Act of 1968 (82 Stat. 295), an
insured State nonmember bank that violates any provision of this part shall be
subject to a civil penalty not to exceed $100 fo r each day of the violation.

RULES AND REGULATIONS OF THE CORPORATION

175

APPENDIX A
Minimum Standards for Security Devices
(1) Surveillance systems— (i)

General. Surveillance systems should be:

(A) equipped with one or more photographic, recording, monitoring, or like
devices capable of reproducing images of persons in the banking office with
sufficient clarity to facilitate (through photographs capable of being enlarged to
produce a one-inch vertical head-size of persons whose images have been
reproduced) the identification and apprehension of robbers or other suspicious
persons;
(B) reasonably silent in operation; and
(C) so designed and constructed that necessary services, repairs, or inspec
tions can readily be made.
Any camera used in such a system should be capable of taking at least one
picture every two seconds and, if it uses film, should contain enough unex
posed film at all times to be capable of operating for not less than three m in
utes, and the film should be at least 16mm.
(ii) Installation, maintenance, and operation of surveillance systems providing surveillance of other than walk-up or drive-in teller's stations or windows.
Surveillance devices for other than walk-up or drive-in teller's stations or win
dows should be:
(A) located so as to reproduce identifiable images of persons either leaving
the banking office or in a position to transact business at each such station or
window; and
(B) capable of activation by initiating devices located at each teller's station
or window.
(iii) Installation, maintenance, and operation of surveillance systems provid
ing surveillance of walk-up or drive-in teller's stations or windows. Surveillance
devices for walk-up and drive-in teller’s stations or windows should be located
in such a manner as to reproduce identifiable images of persons in a position
to transact business at each such station or window and areas of such station
or window that are vulnerable to robbery or larceny. Such devices should be
capable of activation by one or more initiating devices located within or in
close proximity to such station or window. Such devices could be omitted in
the case of a walk-up or drive-in teller’s station or window in which the teller
is effectively protected by a bullet-resistant barrier from persons outside the
station or window, but if the teller is vulnerable to larceny or robbery by mem
bers of the public who enter the banking office, the teller should have access
to a device to activate a surveillance system that covers the area of vulnerabil
ity or the exits to the banking office.
(2) Robbery alarm systems. A robbery alarm should be provided for each
banking office at which the police ordinarily can arrive within five minutes after
an alarm is activated. Robbery alarm systems should be:
(i) designed to transm it to the police, either directly or through an interme
diary, a signal (not detectable by unauthorized persons) indicating th a t a crime
against the banking office has occurred or is in progress;
(ii) capable of activation by initiating devices located at each teller's station
or window (except walk-up or drive-in teller’s stations or windows in which the
teller is effectively protected by a bullet-resistant barrier and effectively iso

176

FEDERAL DEPOSIT INSURANCE CORPORATION

lated from persons, other than fellow employees, inside a banking office of
which such station or window may be a part);
(iii) safeguarded against accidental transmission of an alarm;
(iv) equipped with a visual and audible signal capable of indicating im
proper functioning of or tampering with the system; and
(v) equipped with an independent source of power (such as a battery)
sufficient to assure continuously reliable operation of the system for at least
twenty-four hours in the event of failure of the usual source of power.
(3) Burglar alarm systems. Burglar alarm systems should be:
(i) capable of detecting promptly an attack on the outer door, walls, floor,
or ceiling of each vault, and each safe not stored in a vault, in which currency,
negotiable securities, or sim ilar valuables are stored when the office is closed,
and any attempt to move any such safe;
(ii) designed to transm it to the police, either directly or through an interme
diary, a signal (not detectable by unauthorized persons) indicating that any
such attempt is in progress; and in the case of a banking office at which the
police ordinarily cannot arrive within five minutes after an alarm is activated,
designed to activate a loud sounding bell or other device that is audible inside
the banking office and for a distance of approximately 500 feet outside the
banking office;
(iii) safeguarded against accidental transmission of an alarm;
(iv) equipped with a visual and audible signal capable of indicating im
proper functioning of or tampering with the system; and
(v) equipped with an independent source of power (such as a battery)
sufficient to assure continuously reliable operation of the system for at least
eighty hours in the event of failure of the usual source of power.
(4) Walk-up and drive-in teller's stations or windows. Walk-up and drive-in
teller's stations or windows contracted for after February 15, 1969, should be
constructed in such a manner that tellers are effectively protected by bullet-re
sistant barriers from robbery or larceny by persons outside such stations or
windows. Such barriers should be of glass at least one and three-sixteenths
inches thick,1 or of material of at least equivalent bullet-resistance. Pass
through devices should be designed and constructed so as not to afford a
person outside the station or window a direct line of fire at a person inside
the station or window.
(5) Vaults, safes, and night depositories. Vaults and safes (if not to be
stored in a vault) in which currency, negotiable securities, or sim ilar valuables
are to be stored when the office is closed, and night depositories, contracted
for after February 15, 1969, should meet or exceed the following standards:
(A)
Vaults.— Vault walls, roof, and floor contracted for after February 15,
1969, should be made of steel-reinforced concrete, at least 18 inches thick;
vault doors should be made of steel or other drill- and torch-resistant material,
at least three and one-half inches thick, and be equipped with a dial combina
tion lock and a tim e lock and a substantial, lockable day-gate; or vaults and
vault doors should be constructed of materials that afford at least equivalent
burglary-resistance.
1 It sh o u ld be e m p h a s iz e d th a t th is th ic k n e s s is m e re ly b u lle t-re s is ta n t a nd n o t b u lle t
p ro o f.

RULES AND REGULATIONS OF THE CORPORATION

177

(B) Safes.— Safes contracted for after February 15, 1969, should weigh at
least 750 pounds empty or be securely anchored to the premises where
located. The door should be equipped with a combination lock and with a
relocking device that will effectively lock the door if the combination lock is
punched. The body should consist of steel, at least one inch in thickness, with
an ultimate tensile strength of 50,000 pounds per square inch, either cast or
fabricated, and be fastened in a manner equal to a continuous one-fourth inch
penetration weld having an ultimate tensile strength of 50,000 pounds per
square inch. One hole not exceeding %6-inch diameter may be provided in
the body to permit insertion of electrical conductors but should be located so
as not to permit a direct view of the door or locking mechanism. The door
should be made of steel that is at least one and one-half inches thick and at
least equivalent in strength to that specified for the body; or safes should be
constructed of materials that afford at least equivalent burglary-resistance.
(C) Night depositories.— Night depositories (excluding envelope drops not
used to receive substantial amounts of currency) contracted for after February
15, 1969, should consist of a receptacle chest having cast, or welded, steel
walls, top and bottom, at least one inch thick; a combination locked steel door
at least one and one-half inches thick; and a chute, made of steel that is at
least one inch thick, securely bolted or welded to the receptacle and to a
depository entrance of strength sim ilar to the chute; or night depositories
should be constructed of materials that afford at least equivalent burglaryresistance. The depository entrance should be equipped with a lock. Night
depositories should be equipped with a burglar alarm and be designed to pro
tect against the "fis h in g " of a deposit from the deposit receptacle and to
protect against the “ trapping" of a deposit for extraction.
Each device mentioned in this Appendix should be installed and regularly
inspected, tested, and serviced by competent persons so as to assure realiza
tion of its maximum performance capabilities. Activating devices fo r surveil
lance systems and robbery alarms should be operable with the least risk of
detection by unauthorized persons that can be practicably achieved.

APPENDIX B
Proper Employee Conduct During and After a Robbery
With respect to proper employee conduct during and after a robbery,
employees should be instructed—
(1) to avoid actions that might increase danger to themselves or others;
(2) to activate the robbery alarm system and the surveillance system during
the robbery, if it appears that such activation can be accomplished safely;
(3) to observe the robber’s physical features, voice, accent, mannerisms,
dress, the kind of weapon he has, and any other characteristics that would be
useful for identification purposes;
(4) that if the robber leaves evidence (such as a note), to try to put it
aside and out of sight, if it appears that this can be done safely; retain the
evidence, do not handle it unnecessarily, and give it to the police when they
arrive; and refrain from touching, and assist in preventing others from touch
ing, articles or places the robber may have touched or evidence he may have
left, in order that fingerprints of the robber may be obtained;

FEDERAL DEPOSIT INSURANCE CORPORATION

178

(5) to give the robber no more money than the amount he demands and
include “ bait” money in the amount given;
(6) that if it can be done safely, to observe the direction of the robber's
escape and the description and license plate number of the vehicle used, if
any;
(7) to telephone the local police, if they have not arrived, and the nearest
office of the Federal Bureau of Investigation, or inform a designated officer or
other employee who has this responsibility that a robbery has been committed;
(8) that if the robber leaves before the police arrive, to assure that a desig
nated officer or other employee waits outside the office, if it is safe to do so,
to inform the police when they arrive that the robber has left;
(9) to attempt to determine the names and addresses of other persons who
witnessed the robbery or the escape and request them to record their observa
tions or to assist a designated officer or other employee in recording their
observations; and
(10) to refrain from discussing the details of the robbery with others before
recording the observations respecting the robber's physical features and other
characteristics as hereinabove described and the direction of escape and
description of vehicle used, if any.
#
*
*
*
*
[F.R. Doc. 69-566; Filed, Jan. 15, 1969; 8:50 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
Mutual Savings Banks in Massachusetts
Effective April 14, 1969, § 329.7 of the rules and regulations of the Federal
Deposit Insurance Corporation (12 CFR 329.7) is amended by adding a new
paragraph (f) as follows:
§ 329.7 Maximum rates of interest or dividends payable on deposits by
insured nonmember mutual savings banks.
>]t

sje

i'fi

9je

Special notice account deposits in Massachusetts. Notwithstanding para
(f)
graph (b) of this section, any insured nonmember mutual savings bank located
in the Commonwealth of Massachusetts may pay a higher rate of interest or
dividends on any deposit which is subject to a written agreement with the
depositor that such deposit may not be withdrawn in whole or in part other
than pursuant to the terms of a withdrawal notice signed by the depositor and
to be received by the bank not less than 90 days in advance of a 9-day w ith
drawal period.
*

Jjc

[F.R. Doc. 69-4520; Filed, Apr. 16, 1969; 8:48 a.m.]

RULES AND REGULATIONS OF THE CORPORATION

179

CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION
SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY
PART 329— INTEREST ON DEPOSITS
Advertising of Interest on Deposits
Effective August 1, 1969, Part 329 of Title 12 of the Code of Federal Regu
lations is amended as follows:
1. The heading of the part is amended to read as set forth above.
2. In the table of sections, § 329.3 entitled “ Maximum rate of interest on
tim e and savings deposits" is amended to read “ Interest on time and savings
deposits"; a new § 329.8 entitled “ Advertising of interest on deposits" is
added; and § 329.101 entitled “ Payment of interest on basis that 360 days
equals one year" is deleted.
§ 329.0 [Amended]
3. In § 329.0, “ § § 329.7 and 329.8" is substituted for “ § 329.7".
4. In § 329.3 the heading, paragraph (a) and paragraph (e) are amended to
read as follows:
§ 329.3 Interest on time and savings deposits.
(a)
Maximum rate. Except as provided in this section, no insured nonmem
ber bank shall, directly or indirectly, by any device whatsoever, pay interest on
any time deposit or savings deposit at a rate in excess of such applicable
maximum rate as the Board of Directors of the Federal Deposit Insurance Cor
poration shall prescribe from time to time in § 329.6 of this part. In determin
ing the maximum amount of interest permitted to be paid, the effects of com
pounding may be disregarded.
*
$
#
#
#
(e)
Technical grace periods in computing interest on certain time deposits.
Where a time deposit matures in 30 days, 90 days, 180 days, 360 days, or
even multiples of these periods, or where a time deposit matures in 1 month,
3 months, 6 months, 12 months, or even multiples of these periods, insured
nonmember banks may pay interest for such periods at one tw elfth of the
maximum rate, one quarter of the maximum rate, one half of the maximum
rate, or at the maximum rate, or even multiples thereof, respectively. In the
case of any other time deposit no insured nonmember bank shall pay interest
at the maximum rate based on more days than the number of days the funds
are actually on deposit.
$
$
$
$
#
§ 329.6 [Amended]
5. The last two sentences in § 329.6 are revoked.
§ 329.7 [Amended]
6. The last sentence of § 329.7(c) is revoked, and the firs t sentence is
amended to read: “ In determining the maximum amount of interest or divi
dends permitted to be paid, the effects of compounding may be disregarded."
7. A new § 329.8 is added, as follows:
§ 329.8 Advertising of interest on deposits.
Every advertisement, announcement, or solicitation relating to the interest or
dividends paid on deposits in insured nonmember banks (including insured
nonmember mutual savings banks) shall be governed by the following rules:

FEDERAL DEPOSIT INSURANCE CORPORATION

180

(a) Annual rate of simple interest. Interest or dividend rates shall be stated
in terms of annual rates of simple interest or dividends. In no case shall a
rate be advertised which is in excess of the applicable maximum rate for the
particular deposit.
(b) Percentage yields based on 1 year. Where a percentage yield achieved
by compounding interest during 1 year is advertised, the annual rate of simple
interest shall be stated with equal prominence, together with a reference to
the basis of compounding. No insured nonmember bank shall advertise a per
centage yield based on the effect of grace periods permitted such banks in
this part.
(c) Percentage yields based on periods in excess of 1 year. No advertise
ment shall include any indication of a total percentage yield, compounded or
simple, based on a period in excess of a year, or an average annual percent
age yield achieved by compounding during a period in excess of a year.
(d) Time or amount requirements. If an advertised rate is payable only on
deposits that meet time or amount requirements, such requirements shall be
clearly and conspicuously stated. Where the tim e requirement for an advertised
rate is in excess of a year, the required number of years for the rate shall be
stated with equal prominence, together with an indication of any lower rate or
rates that will apply if the deposit is withdrawn at an earlier maturity.
(e) Profit. The term "p ro fit” shall not be used in referring to interest or div
idends paid on deposits.
(f) Accuracy of advertising. No insured nonmember bank shall make any
advertisement, announcement or solicitation relating to the interest or divi
dends paid on deposits which is inaccurate or misleading or which misrepre
sents its deposit contracts.
(g) Solicitation of deposits for banks. Any person or organization which
solicits deposits for an insured nonmember bank shall be bound by the rules
contained in this section with respect to any advertisement, announcement or
solicitation relating to such deposits. No such person or organization shall
advertise a percentage yield on any deposit it solicits for an insured nonmem
ber bank which is not authorized to be paid and advertised by such bank.
§ 329.101 [Revoked]
8. Section 329.101 is revoked.
[F.R. Doc. 69-7302; Filed, June 20, 1969; 8:45 a.m.]

TITLE 12— BANKS AND BANKING
CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION
SUBCHAPTER B— REGULATIONS AND STATEMENT OF GENERAL POLICY
PART 329— INTEREST ON DEPOSITS
1. Effective November 5, 1969, § 329.3(g) is amended to read as follows:
(g)
Time deposits of foreign governmental entities and international organi
zations. Section 329.6 does not apply to the rate of interest that may be paid
by an insured nonmember bank on a time deposit having a maturity of two
years or less and representing funds deposited and owned by (1) a foreign
government, or an agency or instrum entality thereof engaged principally in
activities which are ordinarily performed in the United States by governmental

181

RULES AND REGULATIONS OF THE CORPORATION

entities, (2) an international entity of which the United States is a member, or
(3) any other foreign, international or supranational entity specifically desig
nated by the Board of Directors as exempt from § 329.6. All certificates of
deposit issued by insured nonmember banks to such entities on which the
contract rate of interest exceeds the maximum prescribed under § 329.6 shall
provide that (i) in the event of transfer, the date of transfer, attested to in
writing by the transferor, shall appear on the certificate, and (ii) the maximum
rate limitations of § 329.6 in effect on the date of issuance of the certificate
shall apply to the certificate for any period during which it is held by a person
other than an entity exempt from § 329.6 under the foregoing sentence.n Upon
the presentment of such a certificate for payment, the bank may pay the
holder the contract rate of interest on the deposit for the time that the certifi
cate was actually owned by an entity so exempt.
2. The present footnote 11 at the end of § 329.3(f) is redesignated as foot
note 10.
#
*
*
#
*
[F.R. Doc. 69-13353; Filed, Nov. 7, 1969; 8:48 a.m.]

TITLE 12— BANKS AND BANKING
CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION
INCREASE IN INSURANCE COVERAGE
Effective December 23, 1969, Parts 306, 308, 328, 330, and 331 of the
rules and regulations of the Federal Deposit Insurance Corporation (12 CFR
Parts 306, 308, 328, 330, and 331) are amended as follows:
PART 306— RECEIVERSHIPS AND LIQUIDATIONS
1. The fifth sentence of § 306.2 is amended by deleting
"$15,000” and by inserting the figure "$20,000” in lieu thereof.

the

figure

2. The sixth sentence of § 306.2 is amended by deleting
“ $15,000” and by inserting the figure “ $20,000” in lieu thereof.

the

figure

3. Footnote 1 to § 306.2 is amended by deleting the figure “ $15,000” and
by inserting the figure “ $20,000” in lieu thereof.
PART 308— RULES OF PRACTICE AND PROCEDURES
4.
The third paragraph of the notice of termination of insured status pre
scribed by § 308.26 is amended by deleting the figure “ $15,000” and by
inserting the figure “ $20,000” in lieu thereof.
PART 328— ADVERTISEMENT OF MEMBERSHIP
5. The design of the official sign prescribed by § 328.1 is amended by delet
ing the figure “ $15,000” and by inserting the figure “ $20,000” in lieu thereof.
6. Subparagraph (11) of paragraph (c) of §328.2 is amended by deleting
the figure “ $15,000” and by inserting the figure “ $20,000” in lieu thereof.

2 A new c e rtific a te n o t m a tu rin g p rio r to th e m a tu r ity date o f th e o rig in a l c e rtific a te
m a y be issued by th e in su re d n o n m e m b e r b a n k to th e tra n s fe re e , in w h ic h e v e n t th e
o rig in a l m u s t be re ta in e d by th e b an k. The new c e rtific a te m a y n o t p ro v id e fo r in te re s t
a fte r th e d a te o f tra n s fe r a t a ra te in excess o f th e a p p lic a b le m a x im u m ra te a u th o riz e d
by § 329.6 as o f th e d ate o f issua n ce o f th e o rig in a l c e rtific a te .

182

FEDERAL DEPOSIT INSURANCE CORPORATION
PART 330— CLARIFICATION AND DEFINITION OF DEPOSIT
INSURANCE COVERAGE

7. Subparagraph (2) of paragraph (c) of § 330.1 is amended by deleting the
figure “ $15,000" and by inserting the figure “ $20,000" in lieu thereof.
8. The first sentence of § 330.2 is amended by deleting the figure
“ $15,000" and by inserting the figure “ $20,000" in lieu thereof.
9. Paragraph (a) of § 330.2 is amended by deleting the figure “ $15,000"
and by inserting the figure “ $20,000" in lieu thereof.
10. Paragraph (b) of § 330.2 is amended by deleting the figure “ $15,000"
and by inserting the figure “ $20,000" in lieu thereof.
11. Paragraph (c) of § 330.2 is amended by deleting the figure “ $15,000"
and by inserting the figure “ $20,000" in lieu thereof.
12. Paragraph (a) of § 330.3 is amended by deleting the figure “ $15,000"
and by inserting the figure “ $20,000" in lieu thereof.
13. Paragraph (b) of § 330.3 is amended by deleting the figure “ $15,000"
and by inserting the figure “ $20,000" in lieu thereof.
14. Section 330.4 is amended by deleting the figure “ $15,000" and by
inserting the figure “ $20,000" in lieu thereof.
15. The
“ $15,000"
16. The
“ $15,000"

first sentence of § 330.5 is amended
and by inserting the figure “ $20,000" in lieu
second sentence of § 330.5 is amended
and by inserting the figure “ $20,000" in lieu

by deleting the figure
thereof.
by deleting the figure
thereof.

17. The
“ $15,000"
18. The
“ $15,000"

first sentence of § 330.6 is amended
and by inserting the figure “ $20,000" in lieu
second sentence of § 330.6 is amended
and by inserting the figure “ $20,000" in lieu

by deleting the figure
thereof.
by deleting the figure
thereof.

19. The first sentence of paragraph (a) of § 330.8 is amended by deleting
the figure “ $15,000" and by inserting the figure “ $20,000" in lieu thereof.
20. The second sentence of paragraph (a) of § 330.8 is amended by delet
ing the figure “ $15,000" and by inserting the figure “ $20,000" in lieu
thereof.
21. The third sentence of paragraph (a) of § 330.8 is amended by deleting
the figure “ $15,000" and by inserting the figure “ $20,000" in lieu thereof.
22. Paragraph (b) of § 330.8 is amended by deleting the figure “ $15,000"
and by inserting the figure “ $20,000" in lieu thereof.
23. Paragraph (c) of § 330.9 is amended by deleting the figure “ $15,000"
and by inserting the figure “ $20,000" in lieu thereof.
24. Paragraph (d) of § 330.9 is amended by deleting the figure “ $15,000"
and by inserting the figure “ $20,000" in lieu thereof.
25. Paragraph (e) of § 330.9 is amended by deleting the figure “ $15,000"
and by inserting the figure “ $20,000" in lieu thereof.
26. Section 330.10 is amended by deleting the figure “ $15,000" and by
inserting the figure “ $20,000" in lieu thereof.
PART 331— INSURANCE OF TRUST FUNDS
27. Paragraph (d) of §331.1 is amended by deleting the figure “ $15,000"
and by inserting the figure “ $20,000" in lieu thereof.
(Sec. 9, 65 Stat. 881; 12 U.S.C. 1819)

[F.R. Doc. 70-480; Filed, Jan. 13, 1970; 8:47 a.m.]

183

RULES AND REGULATIONS OF THE CORPORATION

CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION
SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY
PART 335— SECURITIES OF INSURED NONMEMBER STATE BANKS
Effective December 31, 1969, Part 335 of the Code of Federal Regulations is
amended as follows:
1. Section 335.2 is amended to revise paragraph (z )(l), as set forth below:
§ 335.2

Definitions.
*
*
*
*
*
(z) The term "significant subsidiary” means a subsidiary meeting either of
the following conditions:
(1)
The investments in the subsidiary by its parent plus the parent's propor
tion of the investments in such subsidiary by the parent’s other subsidiaries, if
any, exceed 5 percent of the equity capital accounts of the bank. "Invest
ments" refers to the amount carried on the books of the parent and other
subsidiaries or the amount equivalent to the parent's proportionate share in
the equity capital accounts of the subsidiary, whichever is greater.
*
*
*
*
*
2. Section 335.3 is amended to revise paragraph (b), as set forth below:
§ 335.3

Inspection and publication of information filed under the A c t

(b)
Inspection. Except as provided in paragraph (c) of this section, all infor
mation filed regarding a security registered with the Corporation will be avail
able for inspection at the Federal Deposit Insurance Corporation, 550 17th
Street NW., Washington, D.C. In addition, copies of the registration statement
and reports required by § 335.4 (exclusive of exhibits), the statements required
by § 335.5(a), and the annual reports to security holders required by
§ 335.5(c) will be available for inspection at the New York, Chicago, and San
Francisco Federal Reserve Banks and at the Reserve bank of the district in
which the bank filing the statements or reports is located.
*
*
*
*
*
3. Section 335.4 is amended to revise paragraphs (a), (e), (h), and (q ) (l) ,
as set forth below:
§ 335.4

Registration statements and reports.

(a)
Requirement of registration statement. Securities of a bank shall be reg
istered under the provisions of either section 12(b) or section 12(g) of the Act
by filing a statement in conformity with the requirements of Form F - l (or
Form F-10, in the case of registration of an additional class of securities). No
registration shall be required under the provisions of section 12(b) or section
12(g) of the Act of any warrant or certificate evidencing a right to subscribe to
or otherwise acquire a security of a bank if such warrant or certificate by its
terms expires within 90 days after the issuance thereof.
*
*
*
*
*
(e)
Requirement of annual reports. Every registrant bank shall file an
annual report for each fiscal year after the last full fiscal year fo r which finan
cial statements were filed with the registration statement. The report, which
shall conform to the requirements of Form F-2, shall be filed within 90 days
after the close of the fiscal year or within 30 days of the mailing of the bank's
annual report to stockholders, whichever occurs first.

FEDERAL DEPOSIT INSURANCE CORPORATION

184

(h)
Quarterly reports. Every registrant bank shall file a quarterly report in
conformity with the requirements of Form F—4 for each fiscal quarter ending
after the close of the latest fiscal year for which financial statements were
filed in a registration statement except that no report need be filed for the
fiscal quarter which coincides with the end of the fiscal year of the bank. Such
reports shall be filed not later than 30 days after the end of such quarterly
period, except that the report for any period ending prior to the date on which
a class of securities of the bank first becomes effectively registered may be
filed not later than 30 days after the effective date of such registration.
#
*
*
*
*
(q) Number of copies; signatures; binding. (1) Except where otherwise pro
vided in a particular form, six copies of each registration statement and report
(including financial statements) and four copies of each exhibit and each other
document filed as a part thereof, shall be filed with the Corporation. At least
one complete copy of each statement shall be filed with each exchange, if any,
on which the securities covered thereby are being registered. At least one copy
of each report shall be filed with each exchange, if any, on which the bank has
securities registered.
*
*
*
❖
❖
4. Section 335.5 is amended to revise paragraphs (a), (c), (d) (2), (3), and
(4), and (f) (1) through (4); add paragraph (f) (9) and (10); revise paragraph
(h); and to add paragraph (o), as set forth below:
§ 335.5

Proxy statements and other solicitations under section 14 of the Act.

(a)
Requirement of statement. No solicitation of a proxy with respect to a
security of a bank registered pursuant to section 12 of the Act shall be made
unless each person solicited is concurrently furnished or has previously been
furnished with a written proxy statement containing the information required
by Form F-5. If the management of any bank having such a security outstand
ing fails to solicit proxies from the holders of any such security in such a
manner as to require the furnishing of such a proxy statement, such bank
shall transm it to all holders of record of such security a statement containing
the information required by Form F-5. The “ information statement” required
by the preceding sentence shall be transmitted (1) at least 20 calendar days
prior to any annual or other meeting of the holders of such security at which
such holders are entitled to vote or (2) in the case of corporate action taken
with the written authorization or consent of security holders, at least 20 days
prior to the earliest date on which the corporate action may be taken. A proxy
statement or a statement where management does not solicit proxies required
by this paragraph is hereinafter sometimes referred to as a “ Statement".
❖
$
#
*
#
(c)
Annual report to security holders to accompany statements. (1) Any
statement furnished on behalf of the management of the bank that relates to
an annual meeting of security holders at which directors are to be elected
shall be accompanied or preceded by an annual report to such security holders
containing such financial statements for the last 2 fiscal years as will, in the
opinion of the management, adequately reflect the financial position of the
bank at the end of each such year and the results of its operations for each
such year. The financial statements included in the annual report may om it
details or summarize information if such statements, considered as a whole in
the light of other information contained in the report and in the light of the
financial statements of the bank filed or to be filed with the Corporation, will
not by such procedure om it any material information necessary to a fa ir pres

RULES AND REGULATIONS OF THE CORPORATION

185

entation or to make the financial statements not misleading under the circum
stances. Subject to the foregoing requirements with respect to financial state
ments, the annual report to security holders may be in any form deemed
suitable by the management. This paragraph (c) shall not apply, however, to
solicitations made on behalf of management before the financial statements
are available if solicitation is being made at the time in opposition to the man
agement and if the management’s statement includes an undertaking in bold
faced type to furnish such annual report to all persons being solicited at least
20 days before the date of the meeting.
Notes: 1. To reflect adequately the financial position and results of opera
tions of a bank in its annual report to security holders, the financial presenta
tion shall include, but not necessarily be limited to, the following:
(a) Comparative statements of condition at the end of each of the last 2
fiscal years.
(b) Comparative statements of income in a form providing fo r the determi
nation of “ net income” for each fiscal year and per share earnings data.
(c) Comparative statements of changes in capital accounts for each fiscal
year, similar in form to Form F-9C.
(d) Comparative reconciliations of the “ Allowance fbr Possible Loan Losses"
account and of the “ Reserve on Securities" account sim ilar in form to Sched
ule VII and Schedule VIII, Form F-9D.
(e) Supplemental notes to financial statements to the extent necessary to
furnish a fair financial presentation.
2. The financial statements should be prepared on a consolidated basis to
the extent required by § 335.7(d). Any difference from the principles of consoli
dation or other accounting principles or practices, or methods of applying
accounting principles or practices, applicable to the financial statements of the
bank filed or to be filed with the Corporation, which have a material effect on
the financial position or results of operations of the bank, shall be noted and
the effect thereof reconciled or explained in the annual report to security hold
ers.
3. When financial statements included in the annual report (Form F-2) filed,
or proposed to be filed, with the Corporation are accompanied by an opinion
of an independent public accountant, the financial statements in the annual
report to security holders should also be accompanied by an opinion of such
independent public accountant.
4. The requirement for sending an annual report to each person being solic
ited will be satisfied with respect to persons having the same address by send
ing at least one report to a holder of record at that address provided (i) that
management has reasonable cause to believe that the record holder to whom
the report is sent is the “ beneficial owner" (see definition in § 335.2(ff)) of
securities registered in the name of such person in other capacities or in the
name of other persons at such address or (ii) the security holders at such
address consent thereto in writing. Nothing herein shall be deemed to relieve
any person so consenting of any obligation to obtain or send such annual
report to any other person.
(2)
Six copies of each annual report sent to security holders pursuant to
this paragraph (c) shall be sent to the Corporation not later than (i) the date
on which such report is first sent or given to security holders or (ii) the date
on which preliminary copies of the management statement are filed with the
Corporation pursuant to paragraph (f) of this section, whichever date is later.

186

FEDERAL DEPOSIT INSURANCE CORPORATION

Such annual report is not deemed to be “ soliciting m aterial" or to be “ filed"
with the Corporation or otherwise subject to this § 335.5 or the liabilities of
section 18 of the Act, except to the extent that the bank specifically requests
that it be treated as a part of the proxy soliciting material or incorporates it in
the proxy statement by reference.
(d) Requirements as to proxy. * * *
(2) (i) Means shall be provided in the form of proxy whereby the person
solicited is afforded an opportunity to specify by ballot a choice between
approval or disapproval of each matter or group of related matters referred to
therein as intended to be acted upon, other than elections to office. A proxy
may confer discretionary authority with respect to matters as to which a
choice is not so specified if the form of proxy states in bold-faced type how
the shares represented by the proxy are intended to be voted in each such
case.
(ii)
A form of proxy which provides both for the election of directors and
for action on other specified matters shall be prepared so as clearly to pro
vide, by a box or otherwise, means by which the security holder may withhold
authority to vote for the election of directors. Any such form of proxy which is
executed by the security holder in such manner as not to withhold authority to
vote for the election of directors shall be deemed to grant such authority, pro
vided the form of proxy so states in bold-faced type.
Instruction. Subparagraph (2) (ii) of this paragraph does not apply (a) in
the case of a merger, consolidation or other plan if the election of directors is
an integral part of the plan and is not to be separately voted upon or (b) if
the only matters to be acted upon are the election of directors and the elec
tion, selection or approval of other persons such as clerks or auditors.
(3) A proxy may confer discretionary authority to vote with respect to any
of the following matters:
(i) Matters which the persons making the solicitation do not know, a rea
sonable time before the solicitation, are to be presented at the meeting, if a
specific statement to that effect is made in the proxy statement or form of
proxy;
(ii) Approval of the minutes of the prior meeting if such approval does not
amount to ratification of the action taken at that meeting;
(iii) The election of any person to any office for which a bona fide nominee
is named in the proxy statement and such nominee is subsequently unable to
serve or for good cause refuses to serve;
(iv) Any proposal omitted from the proxy statement and form of proxy pur
suant to paragraph (k) of this section;
(v) Matters incident to the conduct of the meeting.
(4) No proxy shall confer authority (i) to vote fo r the election of any person
to any office for which a bona fide nominee is not named in the proxy state
ment, or (ii) to vote at any annual meeting other than the next annual meet
ing (or any adjournment thereof) to be held after the date on which the proxy
statement and form of proxy are first sent or given to security holders. A
person shall not be deemed to be a bona fide nominee and he shall not be
named as such unless he has consented to being named in the proxy state
ment and to serve if elected.
(f)
Material required to be filed. (1) Three preliminary copies of each State
ment, form of proxy, and other item of soliciting material to be furnished to

187

RULES AND REGULATIONS OF THE CORPORATION

security holders concurrently therewith, shall be filed with the Corporation by
management or any other person making a solicitation subject to this § 335.5
at least 10 calendar days (or 15 calendar days in the case of other than rou
tine meetings, as defined below) prior to the date such item is first sent or
given to any security holders, or such shorter period prior to that date as may
be authorized. For the purposes of this subparagraph ( l ) f a routine meeting
means a meeting with respect to which no one is soliciting proxies subject to
this § 335.5 other than on behalf of management and at which management
intends to present no matters other than the election of directors, election of
inspectors of election, and other recurring matters. In the absence of actual
knowledge to the contrary, management may assume that no other such solici
tation of the bank's security holders is being made. In cases of annual meet
ings, one additional preliminary copy of the statement, the form of proxy, and
any other soliciting material, marked to show changes from the material sent
or given to security holders with respect to the preceding annual meeting,
shall be filed with the Corporation.
(2) Three preliminary copies of any additional soliciting material relating to
the same meeting or subject matter, furnished to security holders subsequent
to the proxy statement shall be filed with the Corporation at least 2 days
(exclusive of Saturdays, Sundays, and holidays) prior to the date copies of
such material are first sent or given to security holders, or such shorter period
prior to such date as may be authorized upon a showing of good cause there
for.
(3) Six copies of each Statement, form of proxy, and other item of soliciting
material, in the form in which such material is furnished to security holders,
shall be filed with, or mailed for filing to, the Corporation not later than the
date such material is first sent or given to any security holders. Three copies
of such material shall at the same time be filed with, or mailed for filing to,
each exchange upon which any security of the bank is listed.
(4) If the solicitation is to be made in whole or in part by personal solicita
tion, three copies of all written instructions or other material that discusses or
reviews, or comments upon the merits of, any matter to be acted upon and is
furnished to the individuals making the actual solicitation for their use directly
or indirectly in connection with the solicitation shall be filed with the Corpora
tion by the person on whose behalf the solicitation is made at least 5 days
prior to the date copies of such material are first sent or given to such individ
uals, or such shorter period prior to that date as may be authorized upon a
showing of good cause therefor.
*

iif

(9) The date that proxy material is “ file d " with the Corporation fo r pur
poses of subparagraphs (1), (2), and (4) of this paragraph is the date of
receipt by the Corporation, not the date of mailing to the Corporation. In com
puting the advance filing period for preliminary copies of proxy soliciting mate
rial referred to in such subparagraphs, the filing date of the preliminary mate
rial is to be counted as the first day of the period and definitive material
should not be planned to be mailed or distributed to security holders until
after the expiration of such period. Where additional tim e is required for final
printing after receipt of comments, the preliminary proxy material should be
filed as early as possible prior to the intended mailing date.
(10) Where preliminary copies of material are filed with the Corporation pur
suant to this paragraph, the printing of definitive copies for distribution to

188

FEDERAL DEPOSIT INSURANCE CORPORATION

security holders should be deferred until the comments of the Corporation's
staff have been received and considered.
$
$
$
«
$
(h) False or misleading statements. (1) No solicitation or communication
subject to this section shall be made by means of any statement, form of
proxy, notice of meeting, or other communication, written or oral, containing
any statement that, at the time and in the light of the circumstances under
which it is made, is false or misleading with respect to any material fact, or
that omits to state any material fact necessary in order to make the state
ments therein not false or misleading or necessary to correct any statement in
any earlier communication with respect to the solicitation of a proxy for the
same meeting or subject matter that has become false or misleading. Depend
ing upon particular circumstances, the following may be misleading within the
meaning of this paragraph: Predictions as to specific future market values,
earnings, or dividends; material that directly or indirectly impugns character,
integrity, or personal reputation, or directly or indirectly makes charges con
cerning improper, illegal, or immoral conduct or associations, without factual
foundation; failure so to identify a statement, form of proxy, and other solicit
ing material as clearly to distinguish it from the soliciting material of any
other person or persons soliciting for the same meeting or subject matter;
claims made prior to a meeting regarding the results of a solicitation.
(2)
The fact that a proxy statement, form of proxy, or other soliciting mate
rial has been filed with or reviewed by the Corporation or its staff shall not be
deemed a finding by the Corporation that such material is accurate or com
plete or not false or misleading, or that the Corporation has passed upon the
merits of or approved any statement therein or any matter to be acted upon
by security holders. No representation contrary to the foregoing shall be made.
$
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(o)
Solicitation prior to furnishing required proxy statement. (1) Notwith
standing the provisions of paragraph (a) of this section, a solicitation (other
than one subject to paragraph (i) of this section) may be made prior to fu r
nishing security holders a written proxy statement containing the information
specified in Form F-5 with respect to such solicitation if—
(i) The solicitation is made in opposition to a prior solicitation or an invita
tion for tenders or other publicized activity, which if successful, could reason
ably have the effect of defeating the action proposed to be taken at the meet
ing;
(ii) No form of proxy is furnished to security holders prior to the tim e the
written proxy statement required by paragraph (a) of this section is furnished
to security holders: Provided, however, That this subdivision (ii) shall not apply
where a proxy statement then meeting the requirements of Form F-5 has been
furnished to security holders by or on behalf of the person making the solicita
tion;
(iii) The identity of the person or persons by or on whose behalf the solici
tation is made and a description of their interests direct or indirect, by secu
rity holdings or otherwise, are set forth in each communication sent or given
to security holders in connection with the solicitation; and
(iv) A written proxy statement meeting the requirements of this section is
sent or given to security holders at the earliest practicable date.
(2)
Three copies of any soliciting material proposed to be sent or given to
security holders prior to the furnishing of the written proxy statement required

189

RULES AND REGULATIONS OF THE CORPORATION

by paragraph (a) of this section shall be filed with the Corporation in prelim i
nary form at least 5 business days prior to the date definitive copies of such
material are first sent or given to security holders, or such shorter period as
the Corporation may authorize upon a showing of good cause therefor.
5. Section 335.7 is amended to revise the introductory texts of subpara
graphs (9) and (10) of paragraph (c) and subparagraph (2) of paragraph (f),
as set forth below:
§ 335.7 Form and content of financial statements.
*
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*

❖

(c)
(9) General notes to balance sheets. If present with respect to the person
for which the statement is filed, the following shall be set forth in the balance
sheet or in referenced notes thereto:
Sl<

(10) General notes to statements of income. If present with respect to the
person for which the statement is filed, the following shall be set forth in the
statement of income or in referenced notes thereto:
V
V
V
v
^
(f)
Schedules to be filed. (1) The following schedules shall be filed with
each balance sheet filed pursuant to this part: Schedule I— U.S. Treasury
Securities, Securities of Other U.S. Government Agencies and Corporations,
and Obligations of States and Political Subdivisions; Schedule II— Other Securi
ties; Schedule III— Other Loans; Schedule IV— Bank Premises and Equipment;
Schedule V— Investments in, Income from Dividends, and Equity in Earnings
and Loss of Unconsolidated Subsidiaries; and Schedule VI— Other Liabilities
for Borrowed Money.
(2)
The following schedules shall be filed with each statement of income filed
pursuant to this part: Schedule VII— Allowance for Possible Loan Losses and
Schedule VIII— Reserves on Securities.
*
*
*:«
*
*
6. Section 335.42 is amended to revise paragraphs (1) and (2) of the
Instructions As To Financial Statements, as set forth below:
§ 335.42
sjc

Form for annual report of bank (Form F-2).
*
*

Instructions As To Financial Statements
$
*
*

*
#

1. Financial statements of the bank.
(a)
There shall be filed for the bank, in comparative columnar form, verified
balance sheets as of the close of the last 2 fiscal years and verified state
ments of income for such fiscal years.
*
*
$
*
*
2. Consolidated statements.
There shall be filed for the bank and its majority-owned (i) bank premises
subsidiaries, (ii) subsidiaries doing a foreign banking business, and (iii) signifi
cant subsidiaries, in comparative columnar form, verified consolidated balance
sheets as of the close of the last 2 fiscal years of the bank and verified con
solidated statements of income for such fiscal years.
$
#
#
❖
*

7. Section 335.44 is amended to revise Form F-4, as set forth below:

190
§ 335.44

FEDERAL DEPOSIT INSURANCE CORPORATION
Form for quarterly report of bank (Form F-4).
Federal D e p o sit In s u ra n c e C o rp o ra tio n
Form

F -4

Q u a rte rly R e p o rt o f—
(N am e o f B ank)
(C ity and S ta te )

3 m o n th s

e n d in g

Fisca l y e a r to d a te
(. . . .m o n th s
e n d in g ................. )

...

Ite m
19. .
(c u rre n t
ye ar)

19. .
( p rio r
y e ar)

19. .
(c u rre n t
ye ar)

1 9. .
( p rio r
ye ar)

O p e ra tin g inco m e :
(a) In te re s t and fees on lo a n s ............
(b) In te re s t and d iv id e n d s on s e c u ritie s
(c) O th e r o p e ra tin g in co m e ...................
(d) T o ta l o p e ra tin g in c o m e ......................
2. O p e ra tin g expenses:
(a) S a la rie s and o th e r c o m p e n s a tio n . .
(b) In te re s t expense ..................................
(c) O the r o p e ra tin g expenses ...............
(d) T o ta l o p e ra tin g expenses .................
3. In co m e
b e fo re
in co m e
ta xe s
and
s e c u ritie s g a in s (losses) ......................
4. A p p lic a b le in c o m e ta xe s ...........................
5. In co m e b efo re s e c u ritie s g a in s (losses)
6. N et s e c u rity g a in s (losses), less re la te d
ta x e ffe c t ...................................................
7. N et inco m e .....................................................

Pursuant to the requirements of the Securities Exchange Act of 1934, the
bank has duly caused this quarterly report to be signed on its behalf by the
undersigned, thereunto duly authorized.
(Name of Bank)
By .....................................................................................................
(Name and title of signing officer)
Date ........................................................
A. Use of Form F-4.
Form F—4 is a guide for use in preparation of the quarterly report to be
filed with the Corporation.
B. Persons for Whom the Information Is To Be Given.
The required information is to be given as to the registrant bank or, if the
bank files consolidated financial statements with the annual reports filed with
the Corporation it shall cover the bank and its consolidated subsidiaries. If the
information is given as to the bank and its consolidated subsidiaries, it need
not be given separately for the bank.
C. Presentation of Information.
The form calls only for the items of information specified. It is not neces
sary to furnish a formal statement of income. The information is not required
to be verified (see § 335.7(b)). The report may carry a notation to that effect
and any other qualification considered necessary or appropriate. Amounts may
be stated in thousands of dollars if a notation to that effect is made.
D. Incorporation by Reference to Published Statements.
If the bank makes available to its stockholders or otherwise publishes,
within the period prescribed for filing the report, a financial statement contain

RULES AND REGULATIONS OF THE CORPORATION

191

ing the information required by this form, such information may be incorpo
rated by reference to such published statement if copies thereof are filed as
an exhibit to this report.
E. Extraordinary Items.
If present with respect to any interim period reported herein, extraordinary
items less applicable income tax effect shall be appropriately segregated and
included in the determination of net income. (See Form F-9B, Statement of
Income.)
8. A new § 335.46 is added, as set forth below:
§ 335.46 Form for registration of additional class of securities of a bank pur
suant to section 12(b) or section 12(g) of the Securities Exchange Act of
1934 (Form F-10).
Form F-10— Registration Statement for Additional Classes of Securities of a
Bank
Pursuant to section 12(b) or section 12(g) of the Securities Exchange Act of
1934
(Exact name of bank as specified in charter)
(Address of principal office)
Securities being registered pursuant to section 12(b) of the Act:
Name of each exchange
on which class is being
Title of class
registered

Title of each class of equity securities being registered pursuant to section
12(g) of the Act:
General Instructions
1. Applicability of This Form.
This form may be used for registration of the following securities pursuant
to the Securities Exchange Act of 1934:
(a) For registration pursuant to section 12(g) of the Act of any class of
equity securities of a bank which has one or more other classes of securities
registered pursuant to either section 12(b) or (g) of the Act.
(b) For registration on a national securities exchange pursuant to section
12(b) of the Act of any class of securities of a bank which has one or more
other classes of securities so registered on the same securities exchange.
2. Preparation of Registration Statem ent
This form is not to be used as a blank form to be filled in but only as a
guide in the preparation of a registration statement. Particular attention should
be given to the general requirements in § 335.4 of Part 335. The statement
shall contain the numbers and captions of all items, but the text of the items
may be omitted if the answers with respect thereto are prepared in the
manner specified in § 335.4(s).

192

FEDERAL DEPOSIT INSURANCE CORPORATION
Information Required in Registration
Statement

Item 1— Stock To Be Registered.
If stock is being registered, state the title of the class and furnish the fo l
lowing information (see Instruction 1):
(a) Outline briefly (1) dividend rights; (2) voting rights; (3) liquidation
rights; (4) preemptive rights; (5) conversion rights; (6) redemption provisions;
(7) sinking fund provisions; and (8) liability to further calls or to assessment.
(b) If the rights of holders of such stock may be modified otherwise than by
a vote of a majority or more of the shares outstanding, voting as a class, so
state and explain briefly.
(c) Outline briefly any restriction on the repurchase or redemption of shares
by the bank while there is any arrearage in the payment of dividends or sink
ing fund installments. If there is no such restriction, so state.
Instructions. 1. If a description of the securities comparable to that
required here is contained in any other document filed with the corporation,
such description may be incorporated by reference to such other filing in
answer to this item. If the securities are to be registered on a national securi
ties exchange and the description has not previously been filed with such
exchange, copies of the description shall be filed with copies of the registra
tion statement filed with the exchange.
2. This item requires only a brief summary of the provisions which are per
tinent from an investment standpoint. A complete legal description of the pro
visions referred to is not required and should not be given. Do not set forth
the provisions of the governing instruments verbatim; only a succinct resume
is required.
3. If the rights evidenced by the securities to be registered are materially
limited or qualified by the rights evidenced by any other class of securities or
by the provisions of any contract or other document, include such information
regarding such limitation or qualification as will enable investors to understand
the rights evidenced by the securities to be registered.
Item 2— Debt Securities To Be Registered.
If the securities to be registered hereunder are bonds, debentures or other
evidences of indebtedness, outline briefly such of the following as are relevant
(see Instruction 2 below):
(a) Provisions with respect to interest, conversion, maturity, redemption,
amortization, sinking fund, or retirement.
(b) Provisions with respect to the kind and priority of any lien, securing the
issue, together with a brief identification of the principal properties subject to
such lien.
(c) Provisions restricting the declaration of dividends or requiring the main
tenance of any ratio of assets, the creation or maintenance of reserves or the
maintenance of properties.
(d) Provisions permitting or restricting the issuance of additional securities,
the withdrawal of cash deposited against such issuance, the incurring of addi
tional debt, the release or substitution of assets securing the issue, the m odifi
cation of the terms of the security, and similar provisions.
Instruction 1. Provisions permitting the release of assets upon the deposit
of equivalent funds or the pledge of equivalent property, the release of property

RULES AND REGULATIONS OF THE CORPORATION

193

no longer required in the business, obsolete property or property taken by
eminent domain, the application of insurance moneys, and sim ilar provisions,
need not be described.
(e) The name of the trustee and the nature of any material relationship
with the bank or any of its affiliates; the percentage of securities of the class
necessary to require the trustee to take action; and what indemnification the
trustee may require before proceeding to enforce the lien.
(f) The general type of event which constitutes a default and whether or not
any periodic evidence is required to be furnished as to the absence of default
or as to compliance with the terms of the indenture.
Instruction 2. In most cases, debt securities issued by banks need not be
registered pursuant to section 12(g) of the Securities Exchange Act; the regis
tration requirements of that section apply only to an "equity security". The
term “ equity security" is defined by section 3 ( a ) ( ll) of the Act to mean “ any
stock or sim ilar security; or any security convertible, with or without considera
tion, into such a security; or carrying any warrant or right to subscribe to or
purchase such a security; or any such warrant or right; or any other security
which the Corporation shall deem to be of sim ilar nature and consider neces
sary or appropriate, by such rules and regulations as it may prescribe in the
public interest or for the protection of investors, to treat as an equity secu
rity."
Instruction 3. The instructions to Item 1 also apply to this item.
Item 3— Other Securities To Be Registered.
If securities other than those referred to in Items 1 and 2 are to be regis
tered hereunder, outline briefly the rights evidenced thereby. If subscription
warrants or rights are to be registered, state the title and amount of securities
called for, and the period during which and the price at which the warrants or
rights are exercisable.
Instruction. The instructions to Item 1 also apply to this item.
Item 4— Exhibits.
List all exhibits filed as a part of the registration statement.
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the
bank has duly caused this registration statement to be signed on its behalf by
the undersigned, thereunto duly authorized.
Date ........................................................................................
(Name of Bank)
By ...................................................................................
(Name and title of signing officer)
Instructions As To Exhibits
Subject to § 335.4(o) of Part 335 regarding the incorporation of exhibits by
reference, the exhibits enumerated hereinafter shall be filed as a part of
the registration statement. Exhibits shall be appropriately lettered or numbered
for convenient reference. Exhibits incorporated by reference may bear the des
ignation given in the previous filing. Where exhibits are incorporated by refer
ence, the reference shall be made in the list of exhibits in Item 4.
1. Specimens or copies of each security to be registered hereunder.

FEDERAL DEPOSIT INSURANCE CORPORATION

194

2.
Copies of all constituent instruments defining the rights of the holders of
each class of such securities, including any contracts or other documents
which lim it or qualify the rights of such holders.
§ 335.51

[Amended]

9. Section 335.51 is amended as follows:
Item 2— Dissenters' Rights of Appraisal.
Outline briefly the rights of appraisal or similar rights of dissenters with
respect to any matter to be acted upon and indicate any statutory procedure
required to be followed by dissenting security holders in order to perfect such
rights. Where such rights may be exercised only within a limited time after the
date of the adoption of a proposal, the filing of a charter amendment or other
similar act, state whether the person solicited will be notified of such date.
Instruction. Indicate whether a security holder's failure to vote against a
proposal will constitute a waiver of his appraisal or sim ilar rights and whether
a vote against a proposal will be deemed to satisfy any notice requirements
under State law with respect to appraisal rights. If the State law is unclear,
state what position will be taken in regard to those matters.
Item 5— Voting Securities and Principal Holders Thereof.
*
*
>:<
>;«

>:<

(d)
If to the knowledge of the persons on whose behalf the solicitation is
made, any person and his associates owns of record or beneficially more than
10 percent of the outstanding voting securities of the bank, name such person
or persons, state the approximate amount of such securities owned of record
but not owned beneficially, and the approximate amount owned beneficially,
and the percentage of outstanding voting securities represented by the amount
of securities so owned in each such manner.
*
$
*
>'f
*
Item 6— Nominees and Directors.
i’fi
»;«

»;«

>:«

(4) State, as of the most recent practicable date, the approximate amount
of each class of equity securities of the bank, or any of its parents or subsidi
aries, "beneficially owned" (as defined in § 335.2(ff)) directly or indirectly by
him. If he disclaims beneficial ownership of any such securities, make a state
ment to that effect.
(5) [De/eted]
*

(c)
If fewer nominees are named than the number fixed by or pursuant to
the governing instruments, state the reasons for this procedure and that the
proxies cannot be voted for a greater number of persons than the number of
nominees named.
Item
Others.

7— Remuneration
#

5jC

and

Other Transactions
ifc

With
SjC

Management

and

SfS

(a)
Furnish the following information in substantially the tabular form indi
cated below as to all direct remuneration paid by the bank and its subsidiaries
during the bank's latest fiscal year to the following persons for services in all
capacities:
(1)
Each director of the bank whose aggregate direct remuneration
exceeded $30,000, and each of the two highest paid officers of the bank

RULES AND REGULATIONS OF THE CORPORATION

195

whose aggregate direct remuneration exceeded that amount, naming each such
director and officer.
i'fi
$
$

(b)

Instructions. * * *
3.
In the case of any plan (other than those specified in Instruction 1)
where the amount set aside each year depends upon the amount of earnings
or profits of the bank or its subsidiaries for such year or a prior year (or
where otherwise impracticable to state the estimated annual benefits upon
retirement) there shall be set forth, in lieu of the information called by
Column (C), the aggregate amount set aside or accrued to date, unless
impracticable to do so, in which case the method of computing such benefits
shall be stated. In addition, furnish a brief description of the material terms of
the plan, including the method used in computing the bank's contribution, and
the amount set aside or accrued during the bank's last fiscal year for all
officers and directors as a group, indicating the number of persons in such
group without naming them.
❖
*
*
*
❖
(d) Furnish the following information as to all options to purchase securi
ties, from the bank or any of its subsidiaries, which were granted to or exer
cised by the following persons since the beginning of the bank's last fiscal
year and as to all options held by such persons as of the latest practicable
date: (i) Each director or officer named in answer to paragraph (a)(1), naming
each such person; and (ii) all directors and officers of the bank as a group,
without naming them:
(1) As to options granted, state (i) the title and amount of securities called
for; (ii) the prices, expiration dates, and other material provisions; and (iii) the
market value of the securities called for on the granting date.
(2) As to options exercised, state (i) the title and amount of securities pur
chased; (ii) the aggregate purchase price; and (iii) the aggregate market value
of the securities purchased on the date of purchase.
(3) As to all unexercised options held as of the latest practicable date,
regardless of when such options were granted, state (i) the title and aggregate
amount of securities called for; (ii) the average option price per share; and
(iii) the per share market price of the securities subject to the option, as of
the latest practicable date.
Instructions. 1. The extension, regranting, or material amendment of
options shall be deemed the granting of options within the meaning of this
paragraph.
2.
This item need not be answered with respect to options granted, exer
cised, or outstanding, as may be specified therein, where the total market
value (i) on the granting date of the securities called for by all options granted
during the period specified; (ii) on the dates of purchase of all securities pur
chased through the exercise of options during the period specified; or (iii) as
of the latest practicable date of the securities called for by all options held at
such time, does not exceed $10,000 for any officer or director named in
answer to paragraph (a)(1), or $30,000 for all officers and directors as a
group.
*
*
*
*
*
(e) If to the knowledge of management any indebtedness to the bank has
arisen since the beginning of the bank's last fiscal year under section 16(b) of

196

FEDERAL DEPOSIT INSURANCE CORPORATION

the Securities Exchange Act of 1934, as a result of transactions in the bank's
stock (or other equity securities) by any director, officer, or security holder
named in answer to Item 5(d), which indebtedness has not been discharged by
payment, state the amount of any profit realized and whether suit will be
brought or other steps taken to recover such profit. If, in the opinion of coun
sel, a question reasonably exists as to the recoverability of such profit, only
facts necessary to describe the transactions, including the prices and number
of shares involved, need be stated.
(fj * * *

Instructions. * * *
(5) * * *
(iii) The specified person is subject to this Item 7(f) solely as a director of
the bank (or associate of a director) and his interest in the transaction is
solely that of a director, officer of, a n d /o r owner of less than 10 percent inter
est in, another person that is a party to the transaction.
(iv) The transaction consists of extensions of credit by the bank in the ordi
nary course of its business that (A) are made on substantially the same terms,
including interest rates and collateral, as those prevailing at the tim e for com
parable transactions with other than specified persons, (B) at no time exceed
10 percent of the equity capital accounts of the bank, or $10 million, whichever
is less, and (C) do not involve more than the normal risk of collectibility or
present other unfavorable features. Notwithstanding the foregoing, if aggregate
extensions of credit to the specified persons, as a group, exceeded 20 percent
of the equity capital accounts of the bank at any time during the preceding
year, (1) the aggregate amount of such extensions of credit shall be disclosed,
and (2) a statement shall be included, to the extent applicable, th a t the bank
has had, and expects to have in the future, banking transactions in the ordi
nary course of its business with directors, officers, principal stockholders, and
their associates, on the same terms, including interest rates and collateral on
loans, as those prevailing at the same tim e for comparable transactions with
others. For the purpose of determining "aggregate extensions of credit" in this
instruction, transactions which are exempted from disclosure pursuant to other
instructions to this item may be excluded.
Item 9— Bonus, Profit Sharing, and Other Remuneration Plans. If action is
to be taken with respect to any bonus, profit sharing, or other remuneration
plan, furnish the following information:
*
*
*
*
*
(d)
Furnish such information, in addition to that required by this item and
Item 7, as may be necessary to describe adequately the provisions already
made pursuant to all bonus, profit sharing, pension, retirement, stock option,
stock purchase, deferred compensation, or other remuneration or incentive
plans, now in effect or in effect within the past 2 years, for (i) each director or
officer named in answer to Item 7(a) who may participate in the plan to be
acted upon; (ii) all directors and officers of the bank as a group, if any direc
tor or officer may participate in the plan; and (iii) all employees, if employees
may participate in the plan.
*
*
*
*
*
(f)
If action is to be taken with respect to the amendment or modification
of an existing plan, the item shall be answered with respect to the plan as
proposed to be amended or modified and shall indicate any material differ
ences from the existing plan.

197

RULES AND REGULATIONS OF THE CORPORATION
Instruction. * * *

Item 10— Pension and Retirement Plans.
If action is to be taken with respect to any pension or retirement plan, fu r
nish the following information:
;I;
*
&
*
❖
(d)
Furnish such information, in addition to that required by this item and
Item 7, as may be necessary to describe adequately the provisions already
made pursuant to all bonus, profit sharing, pension, retirement, stock option,
stock purchase, deferred compensation, or other remuneration or incentive
plans, now in effect or in effect within the past two years, for (i) each director
or officer named in answer to Item 7(a) who may participate in the plan to be
acted upon; (ii) all directors and officers of the bank as a group, if any direc
to r or officer may participate in the plan; and (iii) all employees, if employees
may participate in the plan.
*
*
❖
❖
#
(f)
If action is to be taken with respect to the amendment or modification
of an existing plan, the item shall be answered with respect to the plan as
proposed to be amended or modified and shall indicate any material differ
ences from the existing plan.
Instructions. * * *
Item 11— Options, Warrants, or Rights.
If action is to be taken with respect to the granting or extension of any
options, warrants, or rights to purchase securities of the bank or any subsidi
ary, furnish the following information:
(a)
State (i) the title and amount of securities called for or to be called for
by such options, warrants or rights; (ii) the prices, expiration dates and other
material conditions upon which the options, warrants or rights may be exer
cised; and (iii) in the case of options, the Federal income tax consequences of
the issuance and exercise of such options to the recipient and to the bank.
*

jje

i'fi

(c)
Furnish such information, in addition to that required by this item and
Item 7 as may be necessary to describe adequately the provisions already
made pursuant to all bonus, profit sharing, pension, retirement, stock option,
stock purchase, deferred compensation, or other remuneration or incentive
plans for (i) each director or officer named in answer to Item 7(a) who may
participate in the plan to be acted upon; (ii) all directors and officers of the
bank as a group, if any director or officer may participate in the plan; and (iii)
all employees, if employees may participate in the plan.
Instructions. 1. Paragraphs (b) and (c) do not apply to warrants or rights to
be issued to security holders as such on a pro rata basis.
2. The instruction to Item 9 shall apply to paragraph (c) of this item.
3. Include in the answer to paragraph (c) as to each director or officer
named in answer to Item 7(a) and as to all directors and officers as a group
(i) the amount of securities acquired during the past 2 years through the exer
cise of options granted during the period or prior thereto; (ii) the amount of
securities sold during such period of the same class as those acquired through
the exercise of such options; and (iii) the amount of securities subject to all
unexercised options held as of the latest practicable date.
Item 12— Authorization
Exchange.

Issuance

Securities

Otherwise

than

for

FEDERAL DEPOSIT INSURANCE CORPORATION

198

If action is to be taken with respect to the authorization or issuance of any
securities otherwise than in exchange for outstanding securities of the bank
furnish the following information:
*

(b) Furnish a description of the material provisions of the securities such as
would be required in a registration statement filed pursuant to this part. If
the terms of the securities cannot be stated or estimated with respect to any
or all of the securities to be authorized, because no offering thereof is contem
plated in the proximate future, and if no further authorization by security hold
ers for the issuance thereof is to be obtained, it should be stated th a t the
terms of the securities to be authorized, including dividend or interest rates,
conversion prices, voting rights, redemption prices, maturity dates, and sim ilar
matters will be determined by the Board of Directors. If the securities are
additional shares of common stock of a class outstanding, the description may
be omitted.
(c) Describe briefly the transaction in which the securities are to be issued,
including a statement as to (1) the nature and approximate amount of consid
eration received or to be received by the bank, and (2) the approximate
amount devoted to each purpose so far as determinable, for which the net
proceeds have been or are to be used. If it is impracticable to describe the
transaction in which the securities are to be issued, indicate the purpose of
the authorization of the securities, and state whether further authorization for
the issuance of the securities by a vote of security holders will be solicited
prior to such issuance and whether present security holders will have preemp
tive rights to purchase such securities.
(d) [Deleted]
Item 13— Modification or Exchange of Securities.
*
*
*
*

(c)
State the reasons for the proposed modification or exchange, and the
general effect thereof upon the rights of existing security holders.
*
*
*
*
*
Item 14— Mergers, Consolidations, Acquisitions, and Similar Matters.
If action is to be taken with respect to any plan for (i) the merger or con
solidation of the bank into or with any other person or of any other person
into or with the bank; (ii) the acquisition by the bank or any of its subsidiaries
of securities of another bank; (iii) the acquisition by the bank of any other
going business or of the assets thereof; (iv) the sale or other transfer of all or
any substantial part of the assets of the bank; or (v) the voluntary liquidation
or dissolution of the bank:
(a) Outline briefly the material features of the plan. State the reasons there
fo r and the general effect thereof upon the interests of existing security hold
ers. If the plan is set forth in a written document, file three copies thereof
with the Corporation when preliminary copies of the Statement are filed pur
suant to § 335.5(f).
(b) Furnish the following information as to the bank and each person (other
than subsidiaries substantially all of the stock of which are owned by the
bank) which is to be merged into the bank or into or with which the bank is
to be merged or consolidated or the business or assets of which are to be
acquired or which is the issuer of securities to be acquired by the bank or any
of its subsidiaries in exchange for all or a substantial part of its assets:

RULES AND REGULATIONS OF THE CORPORATION

199

(1) A brief description of the business and property of each such person in
substantially the manner described in Items 3 and 4 of Form F - l.
(2) A brief statement as to defaults in principal or interest in respect of any
securities of the bank or of such person, and as to the effect of the plan
thereon and such other information as may be appropriate in the particular
case to disclose adequately the nature and effect of the proposed action.
(3) Such information with respect to the proposed management of the sur
viving bank as would be required by Items 6 and 7 of this Form F-5. Informa
tion concerning remuneration of management may be projected for the current
year based on remuneration actually paid or accrued by each of the constitu
ent persons during the last calendar year. If significantly different, proposed
compensation arrangements should also be described.
(4) A tabular presentation of the existing and pro forma capitalization.
(5) In columnar form, for each of the last 3 fiscal years, a historical sum
mary of earnings. Such summary to be concluded by indicating per share
amounts of income before securities gains (losses), net income, and dividends
declared for each period reported. (Extraordinary items, if any, should be
appropriately reported and per share amounts of securities gains (losses) may
be included.)
(6) In columnar form, for each of the last 3 fiscal years, a combined pro
forma summary of earnings, as appropriate in the circumstances, similar in
structure to the historical summary of earnings. If the transaction establishes
a new basis of accounting for assets of any of the persons included therein,
the pro forma summary of earnings shall be furnished only for the most
recent fiscal year and interim period and shall reflect appropriate pro forma
adjustments resulting from such new basis of accounting.
(7) A tabular presentation of comparative per share data of the constituent
banks or other persons pertaining to:
(A) (i) Income before securities gains (losses); (ii) net income; and (iii) div
idends declared, for each of the last 3 fiscal years; and
(B) Book value per share, at the date of the balance sheets included in the
statement.
The comparative per share data shall be presented on a historical and pro
forma basis (except dividends which are to be furnished on historical basis
only) and equated to a common basis in exchange transactions.
(8) To the extent material for the exercise of prudent judgment, the histori
cal and pro forma earnings data specified in (5), (6), and (7) above fo r the
latest available interim period of the current and prior fiscal years.
Instructions. 1. Historical statements of income in their entirety, as required
by Item 15, may be furnished in lieu of the summary of earnings specified in
paragraph 5. If summary earnings information is presented, show, as a m ini
mum, operating revenues, operating expenses, income before income taxes
and security gains (losses), applicable income taxes, income before securities
gains (losses), securities gains (losses), and net income. The summary shall
reflect retroactive adjustments of any material items affecting the comparabil
ity of the results.
2.
In connection with any interim period or periods between the end of the
last fiscal year and the balance sheet date, and any comparable prior period, a
statement shall be made that all adjustments necessary to a fair statement of
the results for such interim period or periods have been included, and results
of the interim period for the current year are not necessarily indicative of

200

FEDERAL DEPOSIT INSURANCE CORPORATION

results for the entire year. In addition, there shall be furnished in such cases,
as supplemental information but not as a part of the proxy statement, a letter
describing in detail the nature and amount of any adjustments, other than
normal recurring accruals, entering into the determination of the results
shown.
3.
The information required by this Item 14(b) is required in a Statement of
the “ acquiring” or “ surviving” bank only where a “ significant” merger or
acquisition is to be voted upon. For purposes of this item, the term “ signifi
cant” merger or acquisition shall mean a transaction where either (1) the net
book value of assets to be acquired or the amount to be paid therefor exceeds
5 percent of the equity capital accounts of the acquiring bank, or (2) in an
exchange transaction, the number of shares to be issued exceeds 5 percent of
the outstanding shares of the acquiring bank, or (3) gross operating revenues
for the last fiscal year of the person to be acquired exceeded 5 percent of the
gross operating revenues for the last fiscal year of the acquiring bank. If less
than a “ significant” merger or acquisition is to be voted upon, such inform a
tion need only be included to the extent necessary for the exercise of prudent
judgment with respect thereto.
*
*
*
>«c
Item 15— Financial Statements.
(a) If action is to be taken with respect to any matter specified in Items 12,
13, or 14 above, furnish verified financial statements of the bank and its sub
sidiaries such as would be required in a registration statement filed pursuant
to this part. In addition, the latest available interim date balance sheet and
statement of income for the interim period between the end of the last fiscal
year and the interim balance sheet date, and comparable prior period, shall be
furnished. All schedules, except Schedule VII— “ Allowance for Possible Loan
Losses” and Schedule VIII— “ Reserve on Securities” , may be omitted.
(b) If action is to be taken with respect to any matter specified in Item
14(b), furnish for each person specified therein, other than the bank, financial
statements such as would be required in a registration statement filed pur
suant to this part. In addition, the latest available interim date balance sheet
and statement of income for the interim period between the end of the last
fiscal year and the interim balance sheet date, and comparable prior period,
shall be furnished. However, the following may be omitted: (1) All schedules,
except Schedule VII— “ Allowance for Possible Loan Losses” ; and (2) state
ments for a subsidiary, all of the stock of which is owned by the bank, that is
included in the consolidated statement of the bank and its subsidiaries. Such
statements shall be verified, if practicable.
(c) Notwithstanding paragraphs (a) and (b) above, any or all of such finan
cial statements which are not material for the exercise of prudent judgment in
regard to the matter to be acted upon may be omitted. Such financial state
ments are deemed material to the exercise of prudent judgment in the usual
case involving the authorization or issuance of any material amount of senior
securities, but are not deemed material in cases involving the authorization or
issuance of common stock, otherwise than in an exchange, merger, consolida
tion, acquisition, or similar transaction.
*
*
*
*
*
Item 18— Amendment of Charter, Bylaws, or Other Documents.
If action is to be taken with respect to any amendment of the bank’s
charter, bylaws, or other documents as to which information is not required
above, state briefly the reasons for and general effect of such amendment.

RULES AND REGULATIONS OF THE CORPORATION

201

Item 20— Vote Required for Approval.
As to each matter which is to be submitted to a vote of security holders,
other than elections to office or the selection or approval of auditors, state the
vote required for its approval.
10. Section 335.71 is amended as set forth below:
§ 335.71

Forms for financial statements (Forms F—9 A, B, C, and D).
Forms F -9— Financial Statements

A.
B.
C.
D.

Balance Sheet (Form F-9A).
Statement of Income (Form F-9B).
Statement of Changes in Capital Accounts (Form F-9C).
Schedules (Form F-9D).
General Instructions
1. Preparation of Forms.

The forms for financial statements are not to be used as blank forms to be
filled in but only as guides in the preparation of financial statements. The
requirements with respect to the filing of balance sheets and statements of
income are contained in the instructions as to certain other forms required by
this part. Particular attention should be given to the general requirements as
to financial statements in § 335.7, including paragraphs (e) and (f) thereof,
which prescribe when statements of changes in capital accounts and schedules
will be filed. Although inapplicable items specified in the forms for financial
statements should be omitted, the detailed instructions that relate to applica
ble items shall be followed.
2. Accrual Accounting.
Financial statements shall generally be prepared on the basis of accrual
accounting whereby all revenues and all expenses shall be recognized during
the period earned or incurred regardless of the time received or paid, with
certain exceptions: (a) Where the results would be only insignificantly different
on a cash basis, or (b) where accrual is not feasible. Statements with respect
to the first fiscal year that a bank reports on the accrual basis shall indicate
clearly, by footnote or otherwise, the beginning-of-year adjustments that were
necessary and their effect on prior financial statements filed under this part.
(Name of Bank)
A. Balance Sheet
Assets
1.
2.

Cash and due from b a n k s ......................
Investment securities:
(a) U.S. Treasury securities ...................................................................
(b) Securities of other U.S. Government agencies and corporations .
(c) Obligations of States and political s u b d iv is io n s .............................
(d) Other securities .....................................................................................
3. Trading account securities ........................................................................
4. Federal funds sold and securities purchased under agreements to
resell
..........................................................................................................
5. Other loans ...................................................................................................
6. Bank premises and equipment .................................................................
7. Other real estate owned .............................................................................
8. Investments in subsidiaries not consolidated
..................................

2 02

FEDERAL DEPOSIT INSURANCE CORPORATION

9. Customers' acceptance liability .............................................................
10. Other assets ...............................................................................................
11. Total assets
..........................................................................
Liabilities
Deposits:
(a) Demand deposits in domestic offices ...........................................
(b) Savings deposits in domestic offices ...............................................
(c) Time deposits in domestic offices ....................................................
(d) Deposits in foreign offices .................................................................
13. Federal funds purchased and securities sold under agreements to re
purchase .....................................................................................................
14. Other liabilities for borrowed money ........................................................
15. Bank's acceptances outstanding
...............................................
16. Mortgages payable ...........................
............................................. ..
17. Other liabilities .
...........................................
18. Total liabilities ...............................................................................................
19. Minority interests in consolidated subsidiaries ..................................

12.

Reserves on Loans and Securities
20.
21.

Allowance for possible loan losses ......................................
Reserves on securities
Capital Accounts

22.
23.

Capital notes and debentures .
Equity capital:
(a) Capital stock:
Preferred stock
...............................................................
Common stock .................................................................................
(b) Surplus ...............................................................................
(c) Undivided profits ...............................................................................
(d) Reserve for contingencies and other capital re s e rv e s ................
24. Total capital accounts ...............................................................................
25. Total liabilities, reserves, and capital .................................................
Assets

1.
Cash and due from banks, (a) State the total of (1) currency and coin
(A) owned and held in the bank’s vaults and (B) in transit to or from a Fed
eral Reserve Bank; (2) the bank’s total reserve balance with the Federal
Reserve Bank as shown by the bank’s books; (3) demand and time balances
with other banks; and (4) cash items in process of collection.
(b) Reciprocal demand balances with banks in the United States, except
those of private banks and American branches of foreign banks, shall be
reported net.
(c) Do not include unavailable balances with closed or liquidating banks.
Such balances should be reported in “ other assets".
(d) Cash items in process of collection include: (1) checks in process of
collection drawn on another bank, private bank, or any other banking institu
tion that are payable immediately upon presentation (including checks with a
Federal Reserve Bank in process of collection and checks on hand that will be
presented for payment or forwarded for collection on the following business
day); (2) Government checks and warrants drawn on the Treasurer of the

RULES AND REGULATIONS OF THE CORPORATION

203

United States that are in process of collection; and (3) such other items in
process of collection, including redeemed U.S. savings bonds, payable immedi
ately upon presentation in the United States, as are customarily cleared or col
lected by banks as cash items.
(e) Checks drawn on a bank other than the reporting bank that have been
deposited in the reporting bank (or offices or branches of such bank) and have
been forwarded for collection to other offices or branches of the reporting
bank are cash items in the process of collection.
(f) Do not include commodity or bill-of-lading drafts payable upon arrival of
goods against which drawn, whether or not deposit credit therefor has been
given to a customer. If deposit credit has been given, such drafts should be
reported as “ loans"; but if the drafts were received by the reporting bank on a
collection basis they should not be included in the reporting bank’s statement
until such time as the funds have been actually collected.
(g) Unposted debits should preferably be deducted from the appropriate
deposit liability caption. If such items are included hereunder, the amount
shall be stated parenthetically.
2. Investment securities, (a) State separately bdok value of (1) U.S. Treas
ury securities; (2) securities of other U.S. Government agencies and corpora
tions; (3) obligations of States and political subdivisions; and (4) other securi
ties owned by the bank; include securities pledged, loaned or sold under
repurchase agreements and similar arrangements.
(b) Book value with respect to investment quality securities reported in par
agraph (a) shall be cost adjusted for amortization of premium and, at the
option of the bank, for accretion of discount. There shall be set forth in a note
to financial statements ( 1 ) the basis of accounting for book value, and ( 2 ) if
bond discount is systematically accrued and amounts to 5 percent or more of
interest and dividends on investments, the total of accretion income and
deferred income taxes applied thereto.
(c) Include in category (3) of paragraph (a) obligations, including warrants
and tax anticipation notes, of the States of the United States and their politi
cal subdivisions, agencies, and instrumentalities; also obligations of territorial
and insular possessions of the United States. Do not include obligations of fo r
eign states.
(d) Do not include borrowed securities, or securities purchased under resale
agreements or similar arrangements.
3. Trading account securities. State the aggregate value at the balance
sheet date, of securities of all types carried by the bank in a dealer trading
account (or accounts) that are held principally for resale to customers. Indi
cate parenthetically, or otherwise in a note to financial statements, whether
the inventory is valued at (1) cost, (2) lower of cost or market, or (3) market.
If cost basis of valuation is used, furnish aggregate market value of the trad
ing account inventory at the current fiscal year balance sheet date.
4. Federal funds sold and securities purchased under agreements to resell,
(a) State the aggregate value of Federal funds sold and securities purchased
under resale agreement or sim ilar arrangements. All securities purchased
under transactions of this type should be included regardless of ( 1 ) whether
they are called simultaneous purchases and sales, buybacks, turnarounds,
overnight transactions, delayed deliveries, etc., and ( 2 ) whether the transac
tions are with the same or different institutions if the purpose of the transac
tions is to resell identical or similar securities.

204

FEDERAL DEPOSIT INSURANCE CORPORATION

(b)
Federal funds sold and purchases of securities under resale agreements
should be reported gross and not netted against purchases of Federal funds
and sales of securities under repurchase agreements.
5. Other loans, (a) State the aggregate gross value of all loans including
( 1 ) acceptances of other banks and commercial paper purchased in the open
market; ( 2 ) acceptances executed by or for the account of the reporting bank
and subsequently acquired by it through purchase or discount; (3) customers’
liability to the reporting bank on drafts paid under letters of credit for which
the bank has not been reimbursed; and (4) “ cotton overdrafts” or “ advances,”
and commodity or bill-of-lading drafts payable upon arrival of goods against
which drawn, for which the reporting bank has given deposit credit to custom
ers.
(b) Include (1) paper rediscounted with the Federal Reserve or other banks;
and ( 2 ) paper pledged as collateral to secure bills payable, as marginal collat
eral to secure bills rediscounted, or for any other purpose.
(c) Do not include contracts of sale or other loans indirectly representing
bank premises or other real estate; these should be included in “ bank prem
ises” or “ other real estate” .
(d) Do not deduct bona fide deposits accumulated by borrowers for the pay
ment of loans.

6 . Bank premises and equipment, (a) State the aggregate cost of (1) bank
premises owned, (2) leasehold improvements, and (3) equipment less any
accumulated depreciation or amortization with respect to such assets.
(b) All fixed assets acquired subsequent to December 31, 1959, shall be
stated at cost less accumulated depreciation or amortization.
(c) All fixed assets acquired prior to January 1, 1960, that are not presently
accounted for by the bank on the basis of cost less accumulated depreciation
or amortization, may be stated at book value. Any such assets that are still in
use and would not have been fully depreciated on an acceptable method of
accounting for depreciation if the bank had recorded depreciation on such
basis shall be described briefly in a footnote, together with an explanation of
the accounting that was used with respect to such assets.
(d) The term “ leasehold improvements” comprehends two types of situa
tions: ( 1 ) Where the bank erects a building on leased property; and (2) where
a bank occupies leased quarters or uses leased parking lots and appropriately
capitalizes disbursements for vaults, fixed machinery and equipment directly
related to such leased quarters, or resurfacing or other improvements directly
related to such parking lots that will become an integral part of the property
and will revert to the lessor on expiration of the lease.
(e) Bank premises includes vaults, fixed machinery and equipment, parking
lots owned adjoining or not adjoining the bank premises that are used by cus
tomers or employees, and potential building sites.
(f) Equipment includes all movable furniture and fixtures of the bank.
7. Other real estate owned, (a) State the aggregate cost of all real estate
owned by the bank that is not a part of bank premises.
(b)
With respect to real estate acquired through default of a loan, aggregate
cost shall include the unpaid balance on the defaulted loan plus the bank’s
out-of-pocket costs in acquiring clear title to the property. Any adjustments
from aggregate cost shall be explained in a footnote.

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205

(c)
The aggregate market value of all real estate owned by the bank that is
not a part of bank premises shall be set forth in a footnote, together with an
explanation of the method of determining such market value.

8 . Investments in subsidiaries not consolidated. State the aggregate invest
ment, including advances, in subsidiaries not consolidated.
9. Customers' acceptance liability, (a) State the liability to the reporting
bank of its customers on drafts and bills of exchange that have been accepted
by the reporting bank or by other banks for its account and that are outstand
ing— that is, not held by the bank, on the reporting date. (If held by the
reporting bank, they should be reported as “ loans” .)
(b) In case a customer anticipates his liability to the bank on outstanding
acceptances by paying the bank either the full amount of his liability of any
part thereof in advance of the actual m aturity of the acceptance, the bank
should decrease the amount of the customer’s liability on outstanding accept
ances. If such funds are not received for immediate application to the reduc
tion of the indebtedness to the bank or the receipt thereof does not immedi
ately reduce or extinguish the indebtedness, then such funds held to meet
acceptances must be reported in “ demand deposits” .
(c) Do not include customer’s liability on unused commercial and travelers’
letters of credit issued under guaranty or against the deposit of security— that
is, not issued for money or its equivalent.
10. Other assets. State separately, if material, (1) income earned but not
collected; (2) prepaid expenses; (3) property acquired for the purpose of direct
lease financing; and (4) any other asset not included in the preceding items.
11. Total assets. State the sum of all asset items.
Liabilities
12. Deposits, (a) State separately (1) demand deposits in domestic offices
of the bank, (2) savings deposits in domestic offices of the bank, (3) time
deposits in domestic offices of the bank, and (4) deposits in foreign offices.
Related unposted debits, if any, should preferably be deducted from domestic
deposits.
(b) The domestic deposit liability categories shall be segregated in accord
ance with the Rules and Regulations of the Federal Deposit Insurance Corpora
tion, Part 327.2 Classification of Deposits.
(c) The term “ unposted debit” means a cash item in the bank's possession
drawn on itself that has been paid or credited and is chargeable against, but
has not been charged against, deposit liabilities at the close of the reporting
period. This term does not include items that have been reflected in deposit
accounts on the general ledger, although they have not been debited to indi
vidual deposit accounts.
(d) Reciprocal demand deposit balances with banks in the United States,
except those of private banks and American branches of foreign banks, shall
be reported net.
(e) Include outstanding drafts (including advices or authorizations to charge
the bank’s balance in another bank) drawn in the regular course of business
by the reporting bank on other banks pursuant to customer order.
(f) Do not include trust funds held in the bank’s own trust department that
the bank keeps segregated and apart from its general assets and does not use
in the conduct of its business.

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FEDERAL DEPOSIT INSURANCE CORPORATION

13. Federal funds purchased and securities sold under agreements to repur
chase. (a) State the aggregate value of Federal funds purchased and securities
sold under repurchase agreements or similar arrangements. All securities sold
under transactions of this type should be included regardless of ( 1 ) whether
they are called simultaneous purchases and sales, buybacks, turnarounds,
overnight transactions, delayed deliveries, etc., and ( 2 ) whether the transac
tions are with the same or different institutions if the purpose of the transac
tions is to repurchase identical or similar securities.
(b) Federal funds purchased and sales of securities under repurchase agree
ments should be reported gross and not netted against sales of Federal funds
and purchases of securities under resale agreements.
14. Other liabilities for borrowed money. State the aggregate amount bor
rowed by the reporting bank on its own promissory notes, on notes and bills
rediscounted (including commodity drafts rediscounted), or on any other
instruments given for the purpose of borrowing money.
15. Bank's acceptances outstanding, (a) State the aggregate of unmatured
drafts and bills of exchange accepted by the reporting bank, or by some other
bank as agent for the reporting bank (other than those reported in “ demand
deposits” ), less the amount of such acceptances acquired by the reporting
bank through discount or purchase and held on the reporting date.
(b) Include bills of exchange accepted by the reporting bank that were
drawn by banks or bankers in foreign countries, or in dependencies or insular
possessions of the United States, for the purpose of creating dollar exchange
as required by usage of trade in the respective countries, dependencies, or
insular possessions.
16. Mortgages payable, (a) State separately here, or in a note referred to
herein, such information as will indicate ( 1 ) the general character of the debt
including the rate of interest; (2) the date of maturity; (3) if the payment of
principal or interest is contingent, an appropriate indication of such contin
gency; and (4) a brief indication of priority.
(b)
If there are any liens on bank premises or other real estate owned by
the bank or its consolidated subsidiaries which have not been assumed by the
bank or its consolidated subsidiaries, report in a footnote the amount thereof
together with an appropriate explanation.
17. Other liabilities. State separately, if material, (a) accrued payrolls; (b)
accrued income tax liability (Federal and State combined); (c) accrued interest;
(d) cash dividends declared but not paid; (e) income collected but not.earned;
and (f) any other liability not included in Items 12 through 16.
18. Total liabilities. State the sum of Items 12 through 17.
19. M inority interests in consolidated subsidiaries. State the aggregate
amount of m inority stockholders’ interests in capital stock, surplus, and undi
vided profits of consolidated subsidiaries.
Reserves
20. Allowance for possible loan losses, (a) State the balance of the loan
loss allowance account at the end of the fiscal year. Include in this allowance
only ( 1 ) any provision that the bank makes for possible loan losses pursuant
to the Treasury tax formula and (2) any amount in excess of the provision
taken under such formula that (A) represents management’s judgment as to
possible loss or value depreciation and (B) has been established through a
charge against income.

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207

(b) Any provision for possible loan losses that the bank establishes as a
precautionary measure that is in excess of the amount reported in paragraph
(a) shall not be included in this allowance but shall be reported as a contin
gency reserve— that is, as a segregation of undivided profits.
21. Reserves on securities. State the balance of the reserves on securities
at the end of the fiscal year of any allowance that ( 1 ) represents manage
ment's judgment as to possible loss or value depreciation in investment securi
ties and ( 2 ) has been established through an appropriate charge against
income shall be separately stated. Any provision for possible security losses
that the bank establishes as a precautionary measure only (such as to reflect
normal fluctuations in market value of readily marketable securities) shall not
be included in this allowance but shall be reported as a contingency reserve—
that is, as a segregation of undivided profits.
Capital Accounts
22. Capital notes and debentures. State separately here, or in a note
referred to herein, each issue or type of obligation and such information as
will indicate (a) the general character of each type of debt including the rate
of interest; (b) the date of maturity (or dates if maturing serially) and call pro
visions; (c) the aggregate amount of maturities, and sinking fund require
ments, each year for the 5 years following the date of the balance sheet; (d) if
the payment of principal or interest is contingent, an appropriate indication of
the nature of the contingency; (e) a brief indication of priority; and (f) if con
vertible, the basis.
23. Equity capital, (a) Capital stock. State for each class of shares the title
of issue, the number of shares authorized, the number of shares outstanding
and the capital share liability thereof, and, if convertible, the basis of conver
sion. Show also the dollar amount, if any, of capital shares subscribed but
unissued, and of subscriptions receivable thereon.
(b) Surplus. State the net amount formally transferred to the surplus
account on or before the reporting date, subject to the conditions set forth in
the instruction relating to “ undivided profits".
(c) Undivided profits. State the amount of undivided profits shown by the
bank's books.
(d) Reserve for contingencies and other capital reserves.
(1) State separately each such reserve and its purpose.
(2) These reserves constitute amounts set aside for possible decrease in
the book value of assets, or for other unforeseen indeterminable liabilities not
otherwise reflected on the bank's books and not covered by insurance.
(3) As these reserves represent a segregation of undivided profits, do not
include any element of known losses, or losses the amount of which can be
estimated with reasonable accuracy.
(4) Reserves for possible security losses, reserves for possible loan losses,
and other contingency reserves that are established as precautionary measures
only shall be included in these reserves, as they represent segregations of
“ undivided profits".
24. Total capital accounts. State the total of Items 22 and 23.
25. Total liabilities, minority interests, reserves and capital. State the total
of Items 18, 19, 20, 21, and 24.

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FEDERAL DEPOSIT INSURANCE CORPORATION

(N am e o f B ank)
B. S ta te m e n t o f In co m e
1.

3.
4.
5.
6.
7.
8.
9.
10.

O p e ra tin g In co m e :
(a) In te re s t and fees on loa n s .....................................................................................................
(b) In co m e on Federal fu n d s sold and s e c u ritie s p u rc h a s e d u n d e r a g re e m e n ts to
resell
............................................................................................................................................
(c) In te re s t and d iv id e n d s on in v e s tm e n ts :
1. U.S. T re a s u ry s e c u ritie s ........................................................................................................
2. S e c u ritie s o f o th e r U.S. G o ve rn m e n t a ge n cies and c o rp o ra tio n s ........................
3. O b lig a tio n s o f S ta te s and p o litic a l s u b d iv is io n s .....................................................
4. O th e r s e c u ritie s ........................................................................................................................
(d) T ru s t d e p a rtm e n t inco m e ..........................................................................................................
(e) S ervice ch a rg e s on d e p o s it a c c o u n ts ..................................................................................
(f) O th e r s e rv ic e ch arg e s, c o lle c tio n and excha n g e ch arg e s, c o m m is s io n s , and
fees
..................................................................................................................................................
(g) O th e r o p e ra tin g inco m e ...............................................................................................................
(h) T o ta l o p e ra tin g in c o m e ...............................................................................................................
O p e ra tin g Expenses:
(a) S a la rie s and w ages ......................................................................................................................
(b) P ensions and o th e r e m plo ye e b e n e fits ................................................................................
(c) In te re s t on d e p o s its ......................................................................................................................
(d) Expense o f Federal fu n d s p urch a se d and s e c u ritie s so ld u n d e r a g re e m e n ts
to re p u rc h a s e ...........................................................................................................................
(e) In te re s t on o th e r b orro w e d m o ne y .......................................................................................
(f) In te re s t on c a p ita l notes and d e b e n tu re s ........................................................................
(g) O ccu p a n cy expense o f b an k p rem ise s, net:
G ross o c c u p a n c y expense......... ..........................................................................................
Less: R ental in c o m e ......... ......................................................................................................
(h) F u rn itu re and e q u ip m e n t expense (In c lu d in g d e p re c ia tio n o f $--------) .................
(i) P ro visio n fo r loa n losses ..........................................................................................................
(j) O th e r o p e ra tin g e xpenses ..........................................................................................................
(k) T o ta l o p e ra tin g e xpenses ..........................................................................................................
In co m e B e fo re In co m e Taxes a nd S e c u ritie s G a ins (Losses) .........................................
A p p lic a b le In co m e Taxes .................................................................................................................
In co m e B e fo re S e c u ritie s G ains (Losses) ..................................................................................
N et S e c u rity G ains (Losses), less re la te d ta x effe ct, $......... ...............................................
In co m e (b efo re e x tra o rd in a ry ite m s, if any) ...........................................................................
E x tra o rd in a ry Item s, less re la te d ta x effe ct, $......... ................................................................
Less M in o rity In te re s t in C o n s o lid a te d S u b s id ia rie s ..........................................................
N e t In co m e ..............................................................................................................................................
E a rn in g s p e r co m m o n s h a re :*
In co m e b e fo re s e c u ritie s g a in s (losses) ................................................................................
N e t In co m e .........................................................................................................................................

*T h e p e r sh a re a m o u n t o f s e c u ritie s g a in s (losses) m a y be s ta te d s e p a ra te ly . If e x tra
o rd in a ry ite m s are re p o rte d , p e r sh a re a m o u n t o f in c o m e b e fo re e x tra o rd in a ry ite m s and
p er s h a re a m o u n t o f e x tra o rd in a ry ite m s s h a ll be sta te d s e p a ra te ly .

1. Operating income. State separately:
(a) Interest and fees on loans.
(1) Include interest, fees and other charges on all assets that are reported
on the balance sheet as other loans.
(2) Include interest on acceptances, commercial paper purchased in the
open market, drafts for which the bank has given deposit credit to customers,
etc. Also include interest on loan paper that has been rediscounted with Fed
eral Reserve or other banks or pledged as collateral to secure bills payable or
for any other purpose.
(3) Include service charges and other fees on loans.
(4) Include profits (or losses) resulting from the sale of acceptances and
commercial paper at discount rates other than those at which such paper was
purchased.
(5) Current amortization or premiums on mortgages or other loans shall be
deducted from interest on loans and current accumulation of discount on such
items shall be added to interest on loans.
(b) Income on Federal funds sold and securities purchased under agree
ments to resell. Include the total gross revenue from Federal funds sold and
securities purchased under agreements to resell.
(c) Interest and dividends on investments.

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209

(1) State separately interest and dividends from (A) U.S. Treasury securi
ties, (B) securities of other U.S. Government agencies and corporations, (C)
obligations of States and political subdivisions, and (D) other securities owned
by the bank, including securities pledged, loaned, or sold under repurchase
agreements and similar arrangements.
(2) Include accretion of discount on securities, if any; deduct amortization
of premiums on securities. If the reporting bank accrues bond discount and
such income amounts to 5 percent or more of the total of interest and divi
dends on investments, state in a note to financial statements, the amount of
accretion income and deferred income taxes applicable thereto.
(3) When securities are purchased, any payment for accrued interest shall
not be charged to expenses, nor when collected be credited to earnings. Such
interest shall be charged to a separate account that will be credited upon
collection of the next interest payment. The balance in the account shall be
shown as "other assets” in the balance sheet.
(d) Trust department income. (1) Include income from commissions and
fees for services performed by the bank in any authorized fiduciary capacity.
(2)
This item may be reported on the cash tyasis in those instances where
the presentation of the item on the financial statements would not be mate
rially affected thereby. The cash basis may also be used with respect to an
individual trust or estate if accrual of income therefrom is not feasible. If any
portion of trust department income is not reported on the accrual basis, there
shall be a footnote explaining the method of reporting and the reason for
departing from reporting on the accrual basis.
(e) Service charges on deposit accounts. Include amounts charged deposi
tors that fail to maintain specified minimum deposit balances; charges based
on the number of checks drawn on and deposits made in deposit accounts;
charges for account maintenance and for checks drawn on "no minimum bal
ance” deposit accounts; return check charges; etc.
(f) Other service charges, collection and exchange charges, commissions,
and fees. State the aggregate of other service charges, collection and exchange
charges, commissions, and fees. Exclude charges on loans and deposits and
those related to the Trust Department. Do not include reimbursements for
out-of-pocket expenditures made by the bank for the account of customers. If
expense accounts were charged with the amount of such expenditures, the
reimbursements should be credited to the same expense accounts.
(g) Other operating income.
(1) Include all operating income not reported in Items 1(a) through 1(f).
(2) Include (A) net trading account income consisting of profits and losses,
interest, and other income and expense related to securities carried in a dealer
trading account or accounts that are held principally for resale to customers,
but exclude salaries, commissions, and other indirect expenses; (B) income
from lease financing; (C) gross rentals from "other real estate" and safe
deposit boxes; (D) net remittable profits (or losses) of foreign branches and
consolidated subsidiaries less any m inority interests (unless the reporting bank
preferably combines or consolidates each item of income and expense); (E)
interest on tim e balances with other banks; and (F) all other recurring credits
(such as miscellaneous recoveries) and immaterial nonrecurring credit items.
(3) Do not include rentals from bank premises. Such rental income shall be
reported in the inset to Item 2(g). In the event there is a net occupancy
income, the amount shall be shown in parenthesis in Item 2(g).

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FEDERAL DEPOSIT INSURANCE CORPORATION

(4)
Itemize (A) net trading account income, (B) net remittable profits (or
losses) of foreign branches and consolidated subsidiaries (if included in this
subitem), and (C) all other amounts that represent 25 percent or more of the
total of this subitem, unless “ other operating income" is less than 5 percent
of “ total operating income."
(h) Total operating income. State the sum of Items 1(a) through 1(g).
2. Operating expenses. State separately:
(a) Salaries. (1) Include compensation for personal services of all officers
and employees, including dining room and cafeteria employees but not build
ing department employees.
(2) Include amounts withheld from salaries for Social Security taxes and
contributions to the bank’s pension fund. Do not include Social Security taxes
paid by the bank for its own account and the bank's contribution to pension
funds. Such amounts shall be included in Item 2(b).
(3) Include bonus and profit sharing whether paid directly or through a
trustee. Such compensation that is deferred and not distributed to employees
shall be reported in Item 2(b).
(4) Do not include compensation of officers and employees who spent the
major portion of their working tim e on bank building and related functions.
Such compensation shall be included in Item 2(g).
(5) Do not include amounts paid to legal, management, and investment
counsel for professional services if such counsel are not salaried officers or
employees of the bank. Such amounts shall be included in Item 2(j).
(b) Pensions and other employee benefits.
(1) Include all supplementary benefits, other than direct compensation
included in Item 2(a) accrued during the report period on behalf of all officers
and employees except building department personnel (see Item 2(g)).
(2) Include the bank’s own contribution to its pension fund; unemployment
and Social Security taxes for the bank’s own account; life insurance premiums
(net of dividends received) and hospitalization insurance payable by the bank;
and other employee benefits.
(3) Do not include expenses related to testing, training, or education of
officers and employees; the cost of bank newspapers and magazines; premi
ums on insurance policies where the bank is beneficiary; and athletic activities
where the principal purpose is for publicity or public relations and employee
benefits are only incidental. Such amounts shall be included in Item 2(j).
(c) Interest on deposits. Include interest on all deposits.
(d) Expense of Federal funds purchased and securities sold under agreements to repurchase. Include the total gross expenses of Federal funds pur
chased and securities sold under agreements to repurchase.
(e) Interest on other borrowed money.
(1) Include all interest on bills payable, rediscounts, unsecured notes pay
able, and other instruments issued for the purpose of borrowing money other
than Federal funds purchased and securities sold under agreements to repur
chase.
(2) Do not include interest on mortgages on bank premises. Such interest
shall be included in Item 2(g).
(f) Interest on capital notes and debentures. (1) Include all interest on capi
tal notes and debentures.

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211

(2) Amortization of premium or discount shall be deducted from or included
in the amount reported.
(3) Do not include premium or discount paid or realized on retirement of
such securities. Such amount shall be reported in Item 1(g) or 2(i).
(g) Occupancy expense of bank premises, net.
(1) Include in “ gross occupancy expense” inset, the aggregate amount of
(A) salaries, wages, and supplementary compensation of bank personnel who
devote the major portion of their time to the operation of bank premises or its
consolidated premises subsidiaries; (B) depreciation of bank premises and
amortization of leasehold improvements; (C) rent expense of bank premises;
(D) real estate taxes; (E) interest on mortgages on bank premises owned; and
(F) other bank premises operating and maintenance expenses.
(2) Include in “ rental income" inset, the aggregate amount of rentals from
bank premises leased by the bank or its consolidated premises subsidiaries.
(3) Report the net occupancy expense (or net income) of bank premises. If
net income is reported, the amount shall be shown in parenthesis.
(h) Furniture and equipment expense. (1) Include normal and recurring
depreciation charges; rental costs of office machines and tabulating and data
processing equipment; and ordinary repairs to furniture and office machines,
including servicing costs. The amount applicable to depreciation charges shall
be shown in parenthesis.
(2) Include taxes on equipment.
(i) Provision for loan losses.
(1) Banks which provide for loan losses on a reserve basis shall include an
estimated amount for credit losses. Such amount shall be determined by man
agement in light of past loan loss experience and evaluation of potential loss
in the current loan portfolio. The estimated loan loss factor allocable to oper
ating expense shall not be less than the amount computed under one of the
elective methods set forth in subitem ( 2 ).
(2) The bank may elect in 1969, and thereafter consistently use for finan
cial reporting purposes, one of the following methods for allocating loan losses
to operating expense:
(A) Average ratio of loss over the past five years applied to average loans
outstanding during the current year. Ratio of loss shall be the single decimal
quotient of total net chargeoffs (losses less recoveries) and total average loans
for the 5 most recent years, including the current year.
(B) Average ratio of loss on a forward moving average beginning with the
year 1969 applied to average loans outstanding during the current year. Ratio
of loss shall be the single decimal quotient of total net chargeoffs and total
average loans fo r the number of years beginning with 1969 and ending with
the year of report. In 1973, banks which elect the forward moving average
method will compute the minimum allocable credit loss expense on the same
basis as banks which elect method ( 1 ).
Note: For purposes of Item 2(A) and Item 2(B), average annual loans out
standing shall include Federal funds sold and securities purchased under
agreements to resell, and ( 2 ) may be computed on any reasonable schedule of
frequency. In the absence of other procedures “ Other loans” , and “ Federal
funds sold and securities purchased under agreements to resell” , as reported
in Statements of Condition called by supervisory authorities, shall be averaged.
(C) Actual net chargeoffs as experienced in the current year.

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FEDERAL DEPOSIT INSURANCE CORPORATION

(3) An estimated amount for loan losses allocable to operating expense in
excess of the minimurh amount computed as instructed in subitem ( 2 ) should
be provided when judged appropriate in the opinion of management.
(4) Furnish in a note to financial statements an explanation of the basis for
allocating loan losses to operating expense including (A) the method followed,
and (B) amount added at the discretion of management, if any.
(5) The amount may be expressed in even dollars or thousands of dollars.
Note: The amount reported for loan losses in operating expense shall be
adjusted, if necessary, to the amount transferred to the allowance for loan
losses recorded on the books of the bank by an entry to the undivided profits
account in the statement of changes in capital accounts. For example, if the
estimated loan loss expense reported in the statement of income is less than
the amount transferred to the allowance for loan losses, the amount of differ
ence, less related tax effect, should be charged against the undivided profits
account. If the estimated loan loss expense reported in the statement of
income ( 1 ) is more than the amount transferred to the allowance for loan
losses, and ( 2 ) represents the minimum amount the bank is required to allo
cate under its elected method, the amount of difference, less related tax
effect, should be credited to the undivided profits account.
( 6 ) Banks which do not provide for loan losses on a reserve basis shall
include the amount of actual net chargeoffs (losses less recoveries) for the
current year.
(j) Other operating expenses.
(1) Include all operating expenses, not reported in Items 2(a) through 2(i).
(2) Include advertising, business promotion, contributions, cost of examina
tions by supervisory authorities, deposit insurance assessments, fees paid to
directors and members of committees, memberships, net cash shortages or
overages, operating expenses (except salaries) of “ Other real estate owned,"
postage, premium on fidelity insurance, publicity, retainer fees, stationery and
office supplies, subscriptions, taxes not reported against other items, telegrams
and cables, telephone, temporary agency help, travel, unreimbursed losses on
counterfeits, forgeries, payments over stops and all other recurring expenses
and immaterial nonrecurring charges.
(3) Deposit insurance assessment expense shall be reported as a net figure
— that is, all assessment credits during the period shall be applied against the
assessment expense.
(4) Itemize all amounts that represent 25 percent of this item.
(k) Total operating expenses. State the sum of Items 2(a) through 2(j).
3. Income before income taxes and security gains (losses). State the differ
ence of Item 1(h) minus Item 2(k).
4. Applicable income taxes, (a) State the aggregate of Federal and State
taxes applicable to the amount reported in Item (3).
(b)
Do not include taxes applicable to net security gains (losses) and
extraordinary items. Such taxes (or tax reductions) shall be reported in Items
6 and 8 .
5. Income before securities gains (losses). State the difference of Item 3
minus Item 4.
6 . Net security gains (losses). State the net result of security gains and
losses realized. Related income taxes (or tax reductions) shall be shown paren
thetically.

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213

7. Income (before extraordinary items, if any). State the sum of difference
of Items 5 and 6 .
Note: If extraordinary items are reported (See Item 8 ) the caption to this
Item shall read, “ Net income before extraordinary item s".
8 . Extraordinary items. State the material results of nonrecurring transac
tions that have occurred during the current reporting period. Only the results
of major events outside of the ordinary operating activity of the bank are to be
reported herein. Such events would include, but not be limited to, material
gain or loss from sale of bank premises, expropriation of properties, and major
devaluation of foreign currency. Related income taxes (or tax reductions) shall
be shown parenthetically. (Less than material results of nonrecurring transac
tions are to be included in Items 1(g) or 2(j), as appropriate.)
9. Less minority interest in consolidated subsidiaries. State the aggregate
amount of profit or loss accruing to m inority interests.
10. Net income. State the sum or difference of Items 7, 8 , and 9.
Earnings per common share. State the per share amounts applicable to
common stock (including common stock equivalents) and per share amounts
on a fully diluted basis, if applicable. The basis of computation, including the
number of shares used, shall be furnished in a note to the financial state
ments.

(Name of Bank)
C. STATEMENT OF CHANGES IN CAPITAL ACCOUNTS

Increase (Decrease)

Capital
notes and
debentures

Preferred
stock
$______
Par

Common
stock
$
Par

Surplus

Reserve
for contin
Undivided
gencies
and other
profits
capital
reserves

1. Net income transferred to undivided
profits.................... ......... ..........................
2. Capital notes and debentures, preferred
stock and common stock sold (par or
face value)_____ ______ ______________
3. Stock issued incident to mergers and
acquisitions_________________________
4. Premium on capital stock sold_____
__
5. Additions to, or reductions in, surplus,
undivided profits, and reserves in
cident to mergers____________________
6. Transfers to allowance for loan loss,
exclusive of portion charged against
income, less related income tax effect
$ - - ...........- ............- ................... - - - - 7. Cash dividends declared on preferred
stock____ ________ __________________
8. Cash dividends declared on common
stock_____________ __________________
9. Stock issued in payment of stock div i
dend, ______shares at par value______
10. All other increases (decreases)1_______
11. Net increase (decrease) for the year
12. Balance at beginning of y ear2__________
13. Balance at end of year_________________

1 State separately any material amounts, indicating clearly the nature of the transaction out of which the item arose.
2 If the statement is filed as part of an annual or other periodic report and the balances at the beginning of the period
differ from the closing balances as filed for the previous fiscal period, state in a footnote the difference and explain.

FEDERAL DEPOSIT INSURANCE CORPORATION

214

D. SCHEDULES
SCHEDULE I— U.S. TREASURY SECURITIES, SECURITIES OF OTHER U.S. GOVERNMENT AGENCIES
AND CORPORATIONS, AND OBLIGATIONS OF STATES AND POLITICAL SUBDIVISIONS

Type and m aturity grouping

Principal
amount

Book
va lu e 1

U.S. Treasury Securities____________________________________________ _____ _______________
Within 1 year_________________________________________________________________________
After 1 but within 5 years______________ _____________ _____ _____ _______ _______ _____
After 5 but w ithin 10 years__________________________________________________ ______ _
After 10 y e a rs ._______ ___________________________________________ ______ ______________
Total U.S. Treasury Securities__________________________ _____ ________ _________
Securities of other U.S. Government Agencies and Corporations___________________________
Within 1 year____________________________________ _________ ______ ____________________
After 1 but within 5 y e a rs .. _______________________________________ ______ ___________
After 5 but within 10 years____________________________________________________________
After 10 years____ __________ _____ ____________________________________________________
Total securities of Other U.S. Government Agencies and Corporations_____________
Obligations of States and political subdivisions2-3. ___________________________ _____ _______
Within 1 year___________ ____________________________________ _____ ___________________
After 1 but w ithin 5 years___________ __________ ______ _____________________________
After 5 but w ithin 10 years__________ ____________________ _________________ _______
After 10 years_________________________________________________________ _________ _____
Total obligations of States and political subdivisions______________ ______ ________

1 State briefly in a footnote the basis for determining the amounts in this column.
2 Include obligations of the States of the United States and their political subdivisions, agencies, and instrum entalities;
also obligations of territorial and insular possessions of the United States. Do not include obligations of foreign States.
3 State in a footnote the aggregate (a) principal amount, (b) book value, and (c) market value of securities th a t are
less than “ investment grade” . If market value is determined on any basis other than market quotations at balance sheet
date, explain.

SCHEDULE I I — OTHER SECURITIES

Amount

Type

Book v a lu e 1

Bonds, notes, and debentures2*3_______ ______________________________________________
Stocks2-4. . - _____________ ______________________________________________________________
Totals_____ _______ _______ ______________________________________________ ________

1 State briefly in a footnote the basis for determining the amounts shown in this column.
2 State in a footnote the aggregate amount and book value of foreign securities included.
3 State in a footnote the aggregate (a) principal amount, (b) book value, and (c) market value of bonds, notes, and
debentures that are less than "investm ent grade” . If market value is determined on any basis other than market quota
tions at balance sheet date, explain.
4 State in a footnote the aggregate market value.

SCHEDULE I I I — OTHER LOANS 1

Type

Book value

Real estate loans:
Insured or guaranteed by the U.S. Government or its agencies___ _____ ______________________________
O ther_________________________________________________
. --------------------------------------------------------Loans to financial institutions____ __ __ ____________ ______ _____ _______ _____________________ ______
Loans for purchasing or carrying securities (secured or unsecured)_________________________________ ____
Commercial and industrial loans_________ ______________________________________ _______ _______ _____
Loans to individuals for household, fam ily, and other consumer expenditures__________ ______ __________
All other loans (including overdrafts)_______________________ ___________ ___________________ __________
Total other loans reported in balance s h e e t........................ ..................... ......... .......................................

1 If impractical to classify foreign branch and foreign subsidiary loans in accordance with this schedule, a separate
caption stating the total amount of such loans may be inserted. Such action should be explained in a footnote.

RULES AND REGULATIONS OF THE CORPORATION

215

SCHEDULE IV— BANK PREMISES AND EQUIPMENT

Classification 1

Column A

Column B

Column C

Gross book
va lu e 2

Accumulated
depreciation and
amortization v

Amount at
which carried on
balance sheet

Bank premises (including land $ ____ ) _______________
Equipment___________________________________________
Leasehold improvements___ ______ ___________ _______
T otals5________________________________________

H f impractical to consolidate foreign branch and foreign subsidiary bank premises and equipment in accordance
with the breakdown required by this schedule, a separate caption stating the total amount of all such property may be
inserted. Such caption should be explained appropriately in a footnote.
2 State the basis of determining the amounts in column A.
3 If provision for depreciation and amortization is credited in the books directly to the asset accounts, the amounts
for the last fiscal year shall be stated in an explanatory footnote.
4 The nature and amount of significant additions (other than provisions for depreciation and amortization) and de
ductions from depreciation accounts shall be stated in an explanatory footnote.
5 Show totals (corresponding to columns A and B) representing amounts reported for Federal income tax purposes.

SCHEDULE V— INVESTMENTS IN, INCOME FROM DIVIDENDS, AND EQUITY IN EARNINGS AND LOSS
OF UNCONSOLIDATED SUBSIDIARIES

Column A
Name of subsidiary

Percent of
voting stock
owned

Column B

Column C

Total invest
ment, includ
ing advances

Equity in
underlying
net assets
at balance
sheet d a te 1

Column D

Column E

Amount of
dividends2

Bank's propor
tionate part of
earnings or loss
for the period

T o ta ls ____________

1 Equity shall include advances reported in column B to the extent recoverable.
2 State as to any dividends other than cash the basis on which they have been reported as income. If any such dividend
received has been credited to income in an amount differing from that charged to surplus and/or undivided profits by
the disbursing subsidiary, state the amount of such difference and explain.

SCHEDULE VI— “ OTHER” LIABILITIES FOR BORROWED MONEY

Item
Borrowings from Federal Reserve Bank ...................................................................
Unsecured notes payable within 1 year ....................................................................
Unsecured notes payable after 1 year ...................................................................
Other obligations ...........................................................................................................
Total

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

Amount

216

FEDERAL DEPOSIT INSURANCE CORPORATION

SCHEDULE VII— A L L O W A N C E FOR POSSIBLE LOAN LOSSES

Item

' Amount set up
pursuant to
Treasury tax
formula

Other
amount 1

Balances at beginning of period .......................................
Recoveries credited to Allowance ....................................
Additions due to mergers and absorptions2 ...........................
Transfers to Allowance:
From income ......................................................
From undivided profits3 ...........................................
Totals .....................................................
Losses charged to Allowance ..........................................
Balances at end of period4 ..............

1 Do not include any provision for possible loan losses that the bank establishes as a precautionary mea
sure. Include only any provision that (1) has been established through a charge against income, (2) repre
sents management’
s judgment as to possible loss or value depreciation, and (3) is in excess of the pro
vision taken under the Treasury tax formula.
2 Describe briefly in a footnote any such addition.
3 Indicate by parenthesis the gross amount of any credit adjustment to undivided profits.
4 Describe briefly in a footnote the basis used in computing the amount accumulated in the allowance at
the end of the period. State the amount that could have been deducted for Federal income tax purposes if
such amount is in excess of the amount provided by the bank pursuant to the Treasury tax formula.
Note: The sum of the balances should equal the amount of allowance for loan losses reported in the
balance sheet.

SCHEDULE VIII— RESERVES ON SECURITIES

Item

Amount1

Balance at beginning of period ......................................
Additions due to mergers and absorptions2 ...........................
Transfers to reserve:
From income ... ...................................................
From undivided profits .............................................
Totals .....................................................
Losses charged to reserve ............................................
Transfers from reserve ..............................................
Balance at end of period3 ............................................
1 Do not include any provision the bank establishes as a precautionary measure.
2 Describe briefly in a footnote any such addition.
3 Balance should equal the amount of Reserves on securities reported in the balance sheet.

[F.R. Doc. 69-15249; Filed, Dec. 29, 1969; 8:45 a.m.]

SUBCHAPTER A— PROCEDURE AND RULES OF PRACTICE
PART 309— PUBLISHED AND UNPUBLISHED RECORDS
AND INFORMATION

Information Made Available to the Public

217

RULES AND REGULATIONS OF THE CORPORATION

Effective December 31, 1969, Part 309 of the Code of Federal Regulations is
amended as follows:
§ 309.1

Published and unpublished information.

(a) * * *
(3)
Information made available to the public. Except to the extent that the
matters set forth in this paragraph relate to or contain information which is
exempted from the public disclosure provisions of section 3 of the Administra
tive Procedure Act, as amended (5 U.S.C. 552), or other law, the Corporation
makes available for public inspection and copying, upon request to the Secre
tary of the Corporation in its office in Washington, D.C., during normal busi
ness hours, (i) all final opinions (including concurring and dissenting opinions)
and all orders made in the adjudication of cases, (ii) those statements of
policy and interpretations which have been adopted by the Corporation and are
not published in the Federal Register, and (iii) Manual of Examination Policies
and Instructions to Liquidators. To the extent required to prevent a clearly
unwarranted invasion of personal privacy, the Corporation may delete identify
ing details when it makes available or publishes an opinion, statement of
policy, interpretation, or staff manual or instruction. In each case the justifica
tion for the deletion will be fully explained in writing. The Corporation also
maintains and makes available for public inspection and copying a current
index providing information for the public as to any matter which is issued,
adopted, or promulgated after July 4, 1967, and which is required by the
Administrative Procedure Act to be made available or published. The Corpora
tion makes available at its Washington office, at the New York, Chicago, and
San Francisco Federal Reserve Banks, and at the Reserve bank of the district
in which the bank filing a report is located, for public inspection and copying
reports from insured State nonmember banks required under the provisions of
section 12 of the Securities Exchange Act of 1934, as amended (15 U.S.C.
78). All requests for copies of records enumerated in subdivisions (i), (ii), and
(iii) of this subparagraph must be accompanied by a deposit with the Corpora
tion of the estimated costs of copying such records at the rate of 10 cents per
page. Such requests must provide a reasonably specific description of the
record sought which will enable the Corporation to locate the record or records
without undue difficulty.
Except to the extent that the records relate to or contain information which
is exempted from the public disclosure provisions of section 3 of the Adminis
trative Procedure Act, as amended (5 U.S.C. 552) or other law, the Corpora
tion upon request for identifiable records of the Corporation to the Secretary
of the Corporation in its office in Washington, D.C., during normal business
hours, will make such records available to any person who agrees to pay the
costs of searching, preparing and copying such records at the rate of $5 per
hour for searching and preparing and 10 cents per page for copying and has
paid in advance to the Corporation the estimated costs thereof. Such requests
must provide a reasonably specific description of the record sought which will
enable the Corporation to locate the record without undue difficulty. Any denial
by an officer or employee of the Corporation of a request for any information
or record made under this part by any member of the public may be appealed
by a written request to the Board of Directors of the Corporation from the
person whose request is denied.
❖

[F.R. Doc. 69— 15250; Filed, Dec. 29, 1969; 8:45 a.m.]

J{e

218

FEDERAL DEPOSIT INSURANCE CORPORATION

STATE

B A N K IN G

L E G IS L A T IO N - 1 9 6 9

The legislatures of forty-eight States held either regular or special sessions
during 1969 and all of them enacted statutes affecting the banking industry.
Some of the State banking statutes enacted in 1969 are listed below on a
State-by-State basis.

ALABAM A
Interest rates on loans of c o rp o ra tio n s ................
. . SB
Bank investments in debts incurred under the
National Housing A c t ............................................................. SB
Branch b a n k in g ............................................................................ SB
SB
SB
SB
HB
Municipal and revenue bond issues as legal
investments for banks ....................................
. . SB
SB
HB

768
867
23

HB
HB

993
1530

Banks filing fees to be paid with merger
applications ............................................................................ SB
Recordation of instruments .................................................... HB
Frauds relating to negotiable in s tru m e n ts ............................. HB
State bank holidays ................................................................... HB
Fraudulent use of credit cards ............................................... SB

278
1051
632
1427
205

51
9-X
191
814
900
555

ALASKA
Mutual savings bank investments ........................................... SB
Bank loans and investments .................................................... SB

305
173

A R IZ O N A
Savings and loan association loans and
investments ............................................................................. HB
Overdrafts and checks on insufficient funds ...................... HB
Banks and financial institutions - holding
payments made under funeral plan arrangem ents........... HB

60
28
53

Interest rates on installment loans ......................................
Fraudulent use of credit cards ...............................................
Licensing and regulation of escrow agents ......................

HB
HB
HB

57
173
174

Eligibility of banks as depositories of public funds .........

213

STATE BANKING LEGISLATION— 1969

219

ARKANSAS
Fraudulent use of credit cards .......................
..
Additional procedures for organization
of State banks ........................................................................
Charges for collection of accounts ......................................
Credit statements required to be furnished to
borrowers .................................................................................
Taxation of national and State b a n k s ....................................
Banks - investment of funds .................................................

109

SB
HB

127
98

HB
HB
HB

338
82
239

571

AB
AB
AB
AB
AB
AB
AB
Bank and savings and loan association investments . . . . AB
AB
Bank loans to officers ............................................................. AB
Examination of savings and loan a sso c ia tio n s .................... AB
Savings and loan association issuance of more
than one class of stock .........................................
. . AB
Bank tax returns - authority of State Attorney
General to inspect ................................................................. SB
Authorized loans for savings and loan associations ......... AB
State banks - prohibition against offering and
selling securities without a permit .................................... AB
Banks — assessments levied by superintendent.................... AB
Branch b a n k in g ............................................................................ AB
Banks - issuance of capital notes and d e b e n tu re s.............. AB
Foreign banking corporations - authorization to
do business within State ...................................................... AB
Establishment of places of business by banks .................. AB
Real estate investments of savings and loan
associations ............................................................................. AB
Taxation of financial corporations ........................................ AB
SB
Acquisition and holding by banks of stock of
corporations that perform functions a bank may
perform ..................................................................................... AB
Creditors - liability to third p a r tie s ........................................
SB
Bank h o lid a y s ............................................................................... AB
Banks as depositories of public funds .................................. SB
Secured transactions ............................................................... AB

727
765
766
1654
1070
1763
1764
1681
1970
1695
1518

C A L IF O R N IA
Savings bank investments ........................................
..
Savings and loan associations - shares and
investment certificates as "savings d e p o s its " ..................
Financial statements and reports of credit unions ...........
Regulation of check sellers and cashers ...........................
Bank examinations on calendar year basis .........................
Fraudulent use of credit cards .............................................

CO LO R ADO
Savings and Loan Inspection Fund ........................................
Saturday closing of banks ......................................................
Powers of savings and loan associations defined .............
Public trustees and deeds of t r u s t ........................................

SB
SB
HB
HB

763
506
1447
1429
1437
1011
2346
1752
1749
717
2315
1127

1703
1301

66
966
1377
152
151
1255
1495

220

FEDERAL DEPOSIT INSURANCE CORPORATION

Powers of trust companies ...................................................... ..SB
Branch banking .......................................................................... ..HB
Per diem expenses of Banking Board . . . .
. HB
Bond required of State depositories ...................................... HB
Eligible security for depository bonds ............................. .......HB

102
1365
1459
1519
1520

C O N N E C T IC U T
Mortgage loans - mutual savings banks and savings
and loan association participations .................................. HB
Bank investments in GNMA o b lig a tio n s .................................. HB
Reserve requirements of building and savings
and loan associations .............................................
. . HB
State banks and trust companies - interest on
preferred shares, capital notes, and d e b e n tu re s ............. SB
Investments of savings banks ................................................. SB
Powers of State banks and trust companies ......................... SB
Savings and loan associations - amendments implementing
the National Housing A c t ...................................................... HB
Mobile home financing by savings and loan
associations ............................................................................. HB
Study of demand deposits in savings b a n k s ......................... SB
Savings and loan association ownership of
service c o rp o ra tio n s ............................................................... HB
Restrictions on credit unions .................................................... SB
Savings bank mortgage loans ............................................... SB
Savings bank acquisition of real e s ta te .................................. SB
Savings bank charters ............................................................... SB
Limitations on savings deposits in State banks
and trust companies ............................................................. SB
Savings bank construction loans on housing projects . . . . SB
Savings bank issuance of securities guaranteed under
the National Housing A c t ...................................................... SB
Dividends and surplus accounts of savings banks ........... SB
Savings and loan association FHA- and VAinsured mortgage loan investment lim its . .
. HB
Savings and loan associations - interest
charges .............................................................
. . HB
Savings and loan associations investment
in urban renewal areas ...........................................
. . HB
Savings and loan association loan limits on
personal, home improvement, and educational
loans ..........................................................................
. HB
Loans by savings and loan associations to
ecclesiastical societies ......................................
. . HB
Savings and loan association investments in
loans approved and guaranteed by the Agency
for International Development ...........................................HB
HB
Compensation of officers and employees of
savings and loan a s s o c ia tio n s............................................. HB
Sale of assets by savings and loan associations ............. HB
Authority of savings and loan associations to
offer “ savings deposits" ....................................
. . HB

6402
6403
6404
841
859
860
6401
6410
861
6406
842
862
864
928
483
482
484
485
6405
6408
6409

6411
6414

6415
8698
6417
6418
7753

STATE BANKING LEGISLATION— 1969

221

Authority of credit unions to make unsecured
loans and to borrow money .............................
SB
Retirement of officers and employees of credit
unions ........................................................................................ SB
Organization of credit unions ...............................................
SB
Credit unions - annual m e e tin g s ............................................. SB
Withdrawal or expulsion of credit union m e m b e rs .............
SB
.................. SB
Supervisory committees of credit unions .
Membership of credit unions
............................................. SB
Central credit unions ........................
............................. SB
Credit union dividends to m e m b e rs ........................................
SB
Derogatory statements affecting financial
institutions ............................................................................... SB
Small loan regulation
...
...
SB
Branch banking .............................................
. SB
Bank holding companies and acquisition
of banks ......................................................
SB
Solicitation of insurance contracts from
credit card h o ld e rs ................................................................. HB
Distribution of unsolicited credit cards ...............................
HB
Connecticut Mortgage Authority Act ...................................... SB
HJR
Uniform Consumer Credit Code s t u d y .............................

844
845
847
848
850
851
853
854
855
852
604
996
1119
6662
6630
813
284

D ELAW ARE
Interest rates on lo a n s .............................................................
Revision of State business taxes .........................
...

HB
HB

190
296

F L O R ID A
Credit unions - loans to officers and directors,
investments, and organization ............................................. HB
Home Improvement Sales and Finance A c t ......................... HB
Municipal bonds as bank in v e s tm e n ts .................................... SB
Legal holidays ............................................................................ SB
Names of bank holding c o m p a n ie s ........................................ HB
State bonds as legal investments for b a n k s ......................... SB
Banks - loan limitation regulation ......................................
HB
Banks - credit card financing arrangements ...................... SB
Investments of industrial savings b a n k s ............................. SB
Community redevelopment corporation bond issues
as legal investments for b a n k s ........................................... SB
Organization and operation of building and
savings and loan associations ...........................
. . SB
Municipal bond issuance .
.............
HB
HB

282
92
628
1067
2078
991
1716
909
642
513
618
1777
2981

G E O R G IA
Purchase of stocks and investment securities
by banks .................................................................
..
Conversion of regulated certificated banks into
State-chartered banks ..........................................................
Investments by trustees ..........................................................
Banks - increase in common stock categorized as
authorized but unissued stock ...........................................
Limitations on bank loans to one b o rro w e r.........................

194

SB
SB

190
184

SB
SB

157
155

222

FEDERAL DEPOSIT INSURANCE CORPORATION

Banks - right of charge-back or r e fu n d ..................................
Unpaid deposits of banks and credit unions ....................
Interest rates ...............................................................................
Lender Credit Card Act .............................................................
Interest rates on investment capital ......................................
Bank re s e rv e s ...............................................................................
Illegal use of credit cards ........................................................
Bank Holding Company Study Committee ...........................
State depositories ......................................................................
Investment of public funds ......................................................

SB
SB
SB
HB
HB
SB
SB
HR
HB
SB

156
198
121
413
289
50
115
358
144
182

493

HB
HB
SB
SB
HB
. . HB

896
1006
1073
1105
303
1046

SB
SB

701
280

1028

HB
SB
SB
SB
HB
HB

93
1201
1206
1024
265
383

SB
SB

1025
1029

. . HB
HB
Currency exchanges - licenses and f e e s ............................... HB
Probate Act - investments by g u a rd ia n s ............................... HB
Sales finance a g e n c ie s ............................................................... HB
Organization of credit unions ................................................. HB
County treasurers - reporting of interest on
public funds ............................................................................ HB
Consumer installment loans .................................................... HB
Use of credit cards ................................................................... SB
Billing of customers under revolving charge
accounts ................................................................................... HB
Consumer financing ................................................................... HB

1913
1980
2149
1101
1593
779

H A W A II
Revenue bonds as legal investments for banks . .
..
Business development corporation securities
..
as legal investments for b a n k s .............................
Privileges and immunities of building and loan
associations ............................................................................
Industrial loan licenses .............................................................
Powers of State banks .............................................................
Branch banks - fees .................................................................
Security for deposits of public f u n d s ................
Investments authorized for institutional and
fiduciary investors .................................................................
Regulation of credit life and disability in s u ra n c e ..................

ID A H O
Eligibility of banks and trust companies as
depositories of public f u n d s ..................................................
Savings and loan associations - savings accounts
as legal investments for fid u c ia rie s ....................................
Possession of forged checks ....................................................
Loans to bank officers ...............................................................
State bank activities .................................................................
Organization of savings and loan a s s o cia tio n s ....................
Interest rates ...............................................................................
Eligibility of banks and trust companies as
depositories of State funds .............................
..
IL L IN O IS
Interest rates ........................................................

2872
1916
765
1914
1915

STATE BANKING LEGISLATION— 1969
Consumer fraud ...........................................................
Retail installment sales .................................................
Banks - general corporate p o w e rs ......................................
Criminal usury .................... ........................................................

223
HB
HB
HB
HB

IN D IA N A
Organization of savings b a n k s .................................................
SB
Powers and duties of building and loan a s s o c ia tio n s......... HB
Interest rates and usury .......................................................... HB
Credit unions - powers ............................................................. HB
Investments of executors and fiduciaries ......................... SB
Authority of savings and loan associations to raise
capital in the form of savings deposits ........................... HB
Powers of industrial loan and investment companies . . . . HB
Financial institutions - approval of o rg a n iz a tio n .................. HB
Authority of savings and loan associations to make
unsecured property improvement loans ........................... HB
Uniform Gifts to Minors Act amendments ........................... SB
Uniform Consumer Credit Code study ............................... SCR

1917
1918
2420
1802

126
1239
1386
1221
209
1156
1177
1416
1155
172
58

IO W A
Iowa Banking Act of 1969 ........................................................
False uttering or drawing of checks ......................................
Operation of savings and loan a s s o c ia tio n s .........................
Credit unions - dividends ........................................................
KANSAS
Insurance companies— reserves and legal investments . . .
Activities and dividends of credit unions .............................
Deposit of State funds .............................................................
Savings and loan associations— shares, earnings,
and general powers ...............................................................
Par value of bank stock ..........................................................
Fees for bank examinations ....................................................
Truth-in-Lending Act .................................................................
Powers and investments of b a n k s ...........................................
Examination fees for savings and loan a s s o c ia tio n s .........

SB
SB
SB
SB

18
139
140
412

SB
SB
SB
SB

314
65

SB
HB
HB
SB
SB
HB
HB

215
1470
1471
125
388
1018
1580

SB
HB
SB
SB
SB

53
240
45
95
121

SB
SB

83
7

HB
HB

159
1121

66
123

L O U IS IA N A
Usurious interest - exemption of certain transactions . . . .
Banks as judicial depositories .................................................
Guaranteed student loans ........................................................
Bank capital stock and s u r p lu s ...............................................
Fidelity and surety insurance .................................................
Industrial development corporations - securities
as legal investments for banks ...........................................
Rates of interest paid by c o rp o ra tio n s ..................................
M A IN E
Clarification of banking laws .................................................
Approval and disapproval of savings bank m e rg e rs ...........

224

FEDERAL DEPOSIT INSURANCE CORPORATION

Revision of savings and loan association laws .
HB
Bank reporting, reserves, and loan limits ............................. HB
General revision of credit union laws ......................... . . . . SB
SB
General revision of savings bank laws .
. . HB

314
542
200
402
1021

M AR YLAN D
. . SB
HB
Counterfeiting and forgery ...................................................... HB
Credit cards - unsolicited issuance ........................................ HB
Savings and loan association investments ....................
HB
HB
HB
State banks and trust companies authorized to engage
in banking activities permitted to national banks ......... HB
Savings and loan associations - raising capital ................ HB
Fees for examination of banks and trust c o m p a n ie s ......... SB
Industrial finance companies - license and
examination fees
...............................................
. . SB
SB
SB
Retail Credit Accounts Law amendments ........................... HB
Credit unions - supervisory committees ............................. SB
SB
Increase in annual registration fees for
mortgage brokers and bankers ........................................... SB
Credit union examination fees ............................................... SB
Articles of incorporation filing fees and new branch
application fees for banks and trust companies ........... SB
Service fees for student loans ............................................... SB
Savings and loan association mortgages ............................. HB
HB
Mortgages - future advances .................................................... HB
Affiliates of banks and trust companies ............................. HB
Interest and usury .

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

3-XX
21
25
72
741
742
743
4
1133
751
754
755
756
110
387
410
752
749
750
325
930
931
932
5

MASSACHUSETTS
Savings banks - guaranties incidental to the transfer of
investment securities ............................................................. HB
HB
Credit union disclosures relative to interest
on certain group club accounts ........................................ HB
Savings b a n k s -lim its on personal loans ............................. HB
Qualifications of directors of co-operative banks ............. SB
Retirement benefits for savings bank e m p lo y e e s ................ HB
Limiting certain collateral loans by credit unions ............. HB
Forged credit cards .................................................................... SB
Increasing lim its on deposits in savings banks
and trust companies ............................................................. SB
Reserve funds of credit unions ............................................. SB
Savings bank improvement loans ........................................... HB
Uniform Common Trust Fund A c t ........................................... SB
Collateral loans of co-operative banks .................................. HB

638
783
20
3617
4
4919
4920

6
1361
1323
2645
650
973

225

STATE BANKING LEGISLATION— 1969
Savings bank investments

. . HB
HB
Savings bank collateral loans .................................................. HB
Supervision and licensing of premium finance agencies . . HB
Misuse of credit cards ............................................................... SB
Liquidity reserves of co-operative banks ............................. SB
Salary deductions for credit union payments ...................... SB
Reimbursement for costs of examining and
auditing banks ...................................................................... HB
Savings bank investment in bank holding companies . . . . HB
Licensing of small loan c o m p a n ie s .........................

. . HB

638
780
782
16
1551
1515
1529
14
5704Appx. A
13

M IC H IG A N
Uniform Commercial Code - commercial transactions . . . .
Organization and powers of credit unions ...........................
Organization and powers of savings and loan
associations .............................................................................
Urban redevelopment corporations - general obligation
bonds as legal investments for b a n k s ...............................
Banking Code of 1969 .............................................................
Consumer financing study ........................................................

HB
HB

3154
2605

785

SB
SB
SR

1049
215
114

Banks as depositories of State and municipal funds . . . . SB
SB
SB
Mutual savings bank investments ........................................... SB
Inactive accounts of credit unions ......................................... SB
Savings Association Act ............................................................. SB
B a n k s -to ta l liabilities of any one b o rro w e r...................... HB
Unsecured loans of savings banks to college students . . HB
Mortgages by financial institutions ...................................... HB
Application fees of building and loan associations ........... HB
Banks and banking - applications, examinations,
and investment powers ...........................................
. . HB
Credit cards - limitation of liability for
unauthorized use ....................................................
. . HB

110
602
1140
405
914
1355
1831
1866
1636
1162

M IN N E S O T A

1163
826

M IS S IS S IP P I
Bank loans and advances of credit ......................................
State bond authorization ..........................................................

SB
SB

1598-X
1515-X

M IS S O U R I
Organization of credit unions ................................................. HB
Regulation of savings and loan associations ...................... SB
Savings and loan association savings deposits .................. HB
Par clearance of checks .......................................................... SB
B a n k s -s a fe deposit business ............................................... SB

117
33
293
201
279

M O NTANA
State banks - limitations on loans to any one person . . . . SB
Withdrawal of funds from financial institutions
by surviving spouse ............................................................. SB

42
65

226

FEDERAL DEPOSIT INSURANCE CORPORATION
NEBRASKA

Banking fees ...............................................................................
Building and loan associations - charges and lo a n s ...........
Authority of building and loan associations to purchase
stock in service corporations ...............................................
Maximum interest rates on certain bank loans ..................
Banks loans and investments .................................................
Department of Banking - interest complaints ..................
Bank loans to officers and employees ..................................
Rights and powers of building and loan associations . . . .
Mergers and consolidations of building and loan
associations ........................................................................
Building and loan association real estate investment . . . .
Additional powers for credit unions ......................................
Industrial loan and investment companies - issuance
of capital notes and debentures .........................................
Life membership in credit unions ...........................................
Audit, in lieu of examination, of industrial loan and
investment companies ...........................................................
Merger and consolidation of credit unions ...........................
Bank reserve requirements ......................................................
Certain stock investments of banks ......................................
Maximum unsecured loans of credit unions ......................
Bank deposits of the Tax Commissioner .............................
Taxation of credit unions ...........................................................
Banks - statements of amounts of loans and
rates of interest ....................................................................
Investments of State money in building and loan or
Federal savings and loan associations .............................
Building and loan association investments ...........................

LB
LB

105
192

LB
LB
LB
LB
LB
LB

199
202
461
122
304
329

LB
LB
LB

327
557
923

LB
LB

611
955

LB
LB
LB
LB
LB
LB
LB

613
954
1024
246
924
1362
1068

1383

LB
LB

838
328

AB
AB
SB
SB
. . SB

24
581
196
406
179

AB
AB
AB

409
538
410

SB
AB

167
94

HB
HB

304
619

NEVADA
Fraudulent use of credit cards ...............................................
Trustees and fiduciaries - trust powers ..................................
Savings and loan association investments ...........................

Regulation of savings and loan a sso cia tio n s...........
Capital stock requirements of banks and trust
companies ...............................................................................
State banks - capital stock ......................................................
Licensing and regulation of trust c o m p a n ie s .........................
Banking corporations as executors, administrators,
and guardians ........................................................................
State Board of Finance .............................................................
NEW

H A M P S H IR E

Small Business Administration - participation loans by
cooperative banks and building and loan associations . .
Unsecured loans of cooperative banks and building and
loan associations .................................................................
Real estate loans of building and loan associations
and cooperative banks ........................................................
Appeals in proceedings relating to banks .............................

STATE BANKING LEGISLATION— 1969
Loans to members of credit and supervisory
committees of credit u n io n s ...............................................
Investment of State funds in savings bank d e p o s its .........
Qualifications of bank officials ...............................................
Bank Advisory Board .................................................................
Legal investments for building and loan associations . . . .
Merger or consolidation of cooperative banks, savings
and loan associations, building and loan associations,
Federal savings and loan associations, and mutual
savings banks ...............................................................
Powers of attorney regarding bank a c c o u n ts ......................
Savings bank loans ....................................................................
Investments of town trustees .................................................
Second mortgage loans .............................................................
Savings bank deposits .............................................................
Savings bank investments ........................................................
Conversion between cooperative banks, savings and loan
associations, and mutual savings b a n k s .............................
Use of nominees by savings banks ......................................
Amendments to charters of Strafford Savings Bank and
Cheshire County Savings B a n k .............................................
Investment by banks of savings d e p o s its .............................

227

HB
HB
HB
HB
SB

511
330
248
790
73

HB
HB
HB
HB
HB
HB
HB

766
305
696
749
755
697
693

SB
HB

196
679

HB
HB

470
386

SB
SB

560
517

AB
AB

600
840

AB
SB
SB
AB
Bank stock ownership ............................................................... SB
AB
General revision of laws regarding banking and banking
institutions ............................................................................... SB
AB
AB
Consumer credit transactions .................................................. AB
Legal holidays ............................................................................. SB
Interest limitations applicable to borrowings by public
authorities and agencies ...................................................... AB
Uniform Consumer Credit Code Study Commission ........... AB
Bank loan lim itations ............................................................... AB

598
287
520
988
942
679

NEW JE R S E Y
Operation of savings and loan associations .........................
Regulation of bank holding companies ..................................
Savings and loan association investments and
participations in mortgage loans ......................................
Taxation of stock of banks and tru st c o m p a n ie s ................
Amendments to Higher Education Assistance Authority
Law ..........................................................................................
Capital loans to businessm en.................................................
Savings and Loan Act amendments ......................................

NEW

1058
692
993

M E X IC O

Accounts of deceased depositors in savings and loan
associations ............................................................................. SB
Credit cards ................................................................................. SB
Designation of agents for service of process on foreign
banks ........................................................................................ HB

240
432
677
850
77

264
112
279

228

FEDERAL DEPOSIT INSURANCE CORPORATION

Liability for unauthorized use of credit c a r d s ......................
Banking and Financial Corporations Tax A c t ......................
Securing deposits of public m o n e y ........................................
General revision of laws relating to credit u n io n s .............
Fees for examination of credit unions ..................................
Bank investment in banking premises ..................................
Uniform Consumer Credit Code study ..................................

HB
HB
HB
HB
HB
HB
SM

224
26
118
196
254
286
32

NEW Y O R K
Special duties of credit union directors ...............................
Payment of dividends or interest by savings b a n k s ...........

SB
SB
AB
AB
Real property holdings of banks ............................................. SB
Investments of savings and loan associations, savings
banks, and credit unions ...................................................... SB
Secured loans by commercial banks .................................... SB
Duties of credit committees of credit unions .................... AB
General powers of credit unions ............................................. SB
AB
AB
AB
AB
Dividends to shareholders of credit unions . .
. . AB
AB
Personal loan departments of banks and trust companies . SB
Changes of bank s h a re s ............................................................. AB
Maintenance of assets in New York by agencies of
foreign banking corporations ............................................. SB
Investment of New York trusts in foreign common trust
funds ........................................................................................ SB
Purchase of life insurance and annuity policies from
savings banks ........................................................................ SB
Extension of credit to bank officers and d ire c to r s ............. AB
Issuance of money by banks .................................................. AB
Mortgage loans of savings banks and savings and loan
associations ............................................................................. SB
Reports and statements required of licensed transm itters
of money ........... ..................................................................... AB
Savings and loan association investments in securities .
. SB
Issuance of certain obligations by savings and
loan associations ....................................................
. . AB
Expenses for examination of affiliates of bank
holding companies ............................................................... AB
Federal funds transactions by banks, trust companies,
savings banks, and savings and loan associations . . . . AB
Investments of officers in capital notes or debentures
of banks and trust companies ........................................... SB
“ Leeway" investments of savings banks and savings
and loan associations ........................................................... SB
Purchases of securities by credit unions ............................. AB
Disclosure of credit charges .................................................... SB
SB

1174
1638
2396
5644
1640
1613
1635
2052
1172
2053
2070
2134
2267
2054
2068
1643
2389
2483
2434
2043
2395
2992
1614
2398
2507
2375
5232
5250
1639
2517
2136
4778
5281

229

STATE BANKING LEGISLATION— 1969
Prohibition against trust companies voting their own
stock held in trust ...............................................................
Loans by banks, trust companies, and industrial banks . .
Investment powers of mutual trust investment companies .
Membership of credit u n io n s ....................................................
Powers of banks, trust companies, and industrial banks . .
Loans and investments of savings and loan associations
Minimum charges on premium fin a n c in g .............................
Real property investments of savings banks and savings
and loan associations ........................................................
Liability of officers, directors, and stockholders of banking
organizations owning a multiple dwelling declared a
public nuisance ......................................................................
Financing of cooperative apartments ....................................
Retirement benefits for savings bank officers and
employees ...............................................................................
Term loans by banks and private b a n k e rs .............................
Nondiscriminatory treatm ent of foreign savings
banks and savings and loan a s s o c ia tio n s .........
Unimproved real property loans of savings banks
and savings and loan associations ....................................
Property improvement and equipment loans of savings
banks and savings and loan a s s o c ia tio n s .........................
Merger of savings banks and savings and loan
associations .............................................................................
Participation by savings banks in certain m o rtg a g e s .........
Conversion of savings banks and savings and
loan associations ....................................................................
Small loans .................................................................................
Time deposits of savings banks and savings
and loan associations ..........................................................
General powers of savings banks and savings and loan
associations ............................................................................
Regulation of bank holding companies ..................................
Taxation of banking corporations ....................................
NORTH

AB
AB
AB
AB
AB
AB
AB

2391
3148
2332
2135
1032
2138
5810

3663

AB
SB

4773
2421

SB
SB

3981
3752

4001

3181

2495

SB
SB

1075
3696

AB
SB

5740
3694

5579

AB
AB
SB

6180
6431
5572

HB
HB
HB
SB
HB

960
962
82
156
356

C A R O L IN A

Investment of public funds in privately insured savings
and loan associations ...........................................................

Loans to bank officers .............................................................
Powers, officers, and supervision of credit u n io n s .............
State Banking Commission fees .............................................
Real property and mobile home financing by savings and
loan associations .................................................................... SB
Right of survivorship with respect to bank d e p o s its ........... HB
Worthless check penalties ........................................................ HB
Procedure of savings and loan associations for
accepting savings deposits .................................................. SB
Bank Taxation Study Commission ........................................ SJR
Excise tax payments of banks ............................................... SB

404
967
1260
403
878
658

230

FEDERAL DEPOSIT INSURANCE CORPORATION

NORTH DAKO TA
Par clearance of checks .......................................................... SB
Lending and investment powers of the Bank of North
Dakota ..................................................................................... SB
Bank installment loan charges ............................................... SB
Bank reserve requirements ...................................................... SB
Investment in loans and obligations secured by Federal
and State Governments ........................................................ SB
SB
Conversions into national banks - removals to new
locations ................................................................................. HB
Bank reports of income .......................................................... SB
Penalties and liabilities of bank employees for
overdrafts
............................................................................... HB
Liability for unauthorized use of credit cards .................... SB
Usury and maximum contract rates of in te re s t.................... HB
State examiner and appointment of deputies .................... HB
Restrictions on loans to and purchases from directors,
officers, and employees of State banks ........................... HB
General revision of laws relating to credit u n io n s ................ HB
State Banking Board - State Credit Union Board ................ SB
Capital notes of banking associations .................................. HB
Bad checks .................................................................................. HB
Bank reports to State e x a m in e r........................................
HB
Management and control of State Department of
Banking and Financial In s titu tio n s .................................... SB

128
320
256
147
207
209
113
299
278
345
133
122
445
191
446
108
413
400
181

O H IO
Loans and investments of building and loan
associations ............................................................................
Accounts of fiduciaries .............................................................
Building and loan association drive-in and
pedestrian facilities ...............................................................
Administration and supervision of credit unions ................
Exclusion of certain loans from usury la w s .........................
Investment of public funds ....................................................
Investments in bank premises - loans to directorslicense fees for trust companies ......................................
Conversion of building and loan associations ....................
Investment of public employees retirement f u n d s ................

SB
HB

44
176

SB
SB
SB
SB

45
230
233
171

HB
SB
SB
SB
Theft of credit cards ................................................................. SB
Legal holidays ............................................................................ HB
Consumer protection study .................................................... HR

739
340
176
408
346
5
74

O KLAHO M A
Interest on time deposits on surplus public fu n d s ................ HB
Oklahoma Savings and Loan Act of 1969 ............................. SB
Preventing certain corporations from acting in
certain fiduciary capacities .................................................. HB

1129
208
1337

231

STATE BANKING LEGISLATION— 1969
OREGON
Powers of banks and trust companies ...........

...

SB
HB
SB
SB
SB
SB

133
1603
130
131
203
228

HB
SB

1353
134

HB
HB

1394
1329

Regulation of corporate fiduciary p o w e rs ............................. SB
Merger, consolidation, and conversion of
banks and savings banks .................................................... SB
Powers of savings and loan associations ............................. SB
Fiduciary powers of banks and trust companies ................ SB

603

Banking Division records ........................................................
Fees for examination of banks and trust c o m p a n ie s .........
Insurers' deposits ......................................................................
Death of depositors in financial in s titu tio n s ...........................
Conflicts of interest involving directors and officers of
mutual savings banks ........................................................
Branch banking ..........................................................................
Foreign banks, trust companies, and savings and loan
associations authorized to transact certain business .
Investments of fiduciaries in stocks ......................................
P E N N S Y L V A N IA

RHODE

761
755
854

IS L A N D

Loan and investment companies - mortgage loans ...........
Unauthorized banking business .............................................
Investments of credit unions .................................................
Allowing successor banks to succeed to fiduciary
appointments ..........................................................................
Conversion of building and loan associations into
savings banks ........................................................................
Commercial bank investment in political subdivisions . . . .
Investment of savings deposits in bank holding
companies ...............................................................................
Rhode Island Share and Deposit Insurance Corporation . .
Tax on bank deposits - advance tax payment
by corporations ......................................................................

HB
HB
SB

1763
1979
685

758

HB
SB

2036
757

HB
HB

1978
2037

1825

SB
HB

133
1480

1838

Corporations - claims of u s u r y ................................................. SB
Installment loan interest rates ............................................... HB
Powers of State-chartered savings and loan associations . HB
Codification and revision of banking la w s ........................... HB

90
605
756
606

S O U T H C A R O L IN A
Merger, consolidation, and transfer of assets
of banks and trust companies ...........................................
Investments by fiduciaries ......................................................
Memorializing a Congressional investigation of the
prime interest-rate increase ...............................................
SOUTH

DAKOTA

TENNESSEE
Governor's Advisory Commission on Consumer Protection . HB
Legal rates of interest ............................................................. HB
Banking institutions - powers of attorney ............................. SB

17
201
407

232

FEDERAL DEPOSIT INSURANCE CORPORATION

State Credit Card Crime Act .................................................
Veterans’ estates - savings and loan a c c o u n ts ....................
Bad checks ..................................................................................
Deposit of public funds in savings and loan associations .
Depositories for State funds .................................................

SB
SB
HB
SB
SB

271
496
456
422
621

Consumer Credit Study Committee .................................... SCR
Organization and regulation of credit unions .................... SB
Fees charged and received by the banking commissioner . HB
Organization of Savings and Loan Section of
the Finance Commission ................................................... HB
Qualifications of directors of State banks ........................... SB
Qualifications of managing officers of savings
and loan associations ..................................
. . HB
Acquisition of interest in investment trust
and mutual funds by trustees ......................
. . SB
Transfer of security - requirement of signature
guarantee ................................................................................. SB
Payment of wages - bad checks ........................................... SB
Credit card fraud ...................................................................... HB
General revision of laws relating to savings
and loan associations ........................................
. . HB
State banks - examinations, stock option plans,
authority to make loans, and liabilities ........................... HB
Refunding bonds ........................................................................ SB
SB

9-XX
317
685

TEXAS

UTAH
...............................
Consumer credit transactions
.
Fraudulent credit d e v ic e s ..........................................................
Drafts or orders against insufficient fu n d s ....................

HB
HB
HB
HB
Creation and regulation of public transit districts ............. SB
Loans to bank officers ............................................................... SB
Saturday closing for banks . ....................................................... SB

739

88
965
466
469
13
1006
397
684
675
676

9-X
12
10
11
4-X
99
100

VERMONT
Regulation of credit unions ...................................................... HB
Regulation of financial institutions ........................................ HB
Savings and Loan Law ............................................................. HB

31
173
198

W A S H IN G T O N
Dishonored checks ......................................................................
Interest on judgments ...............................................................
Regulation of credit unions ....................................................
Incorporation of savings and loan associations ................
Mutual savings bank powers, payment of deposits
and interest thereon ........................................................ .. .
State regulation of financial institutions .............................
State fiscal agencies ...............................................................
Insurance Premium Finance Company Act .........................

HB
SB
HB
HB
HB
HB
SB
SB

196
121
301
282
131

333
205
648

STATE BANKING LEGISLATION— 1969
Financial interest reports required of public
officers and employees ...................................................... ...SB
Investment of retirement funds ............................................. HB
Business and occupation taxes payable by banks . .
SB

233

629
425
196

W E S T V IR G IN IA
Powers, privileges, authorities, and duties
of building and loan associations .................................... HB
State Banking Code of West V ir g in ia ...................................... .. SB
Interest charges on installment loans .................................... .. SB
Fraudulent use of credit c a r d s ................................................. .. SB
Investments of fiduciaries ........................................................ .. SB

716
176
221
244
248

W IS C O N S IN
Loan lim itations applicable to savings
and loan associations .........................
. . AB
Deficiency appropriations for school aid
and veteran’s housing loans ............................................... ..AB
State finances and appropriations ........................................ ..SB
Loans and investments of savings
and loan associations .......................................................... ..SB
Limitation of actions for payment of cashier’s checks . . . . AB
Payment of dividends by savings and loan associations . . . AB
Judicial review of actions of credit
union review boards ...............................................................SB
Powers of savings and loan associations ............................. ..SB
Dividends of central credit u n io n s .............................................SB
State Bond Board ........................................................................SB
Savings and loan a c c o u n ts ........................................................ ..SB
W Y O M IN G
Removal of officers of and issuance of
cease-and-desist orders against banks ........................... .. HB
Payment of bank deposits ......................................................HB
Interest rates on installment loans ........................................ ..SB
Bank and trust company records as e v id e n c e .................... ..HB
Deposit of collateral security by State depositories ...........HB
Temporary emergency rules of State examiner
regarding banking activities ................................................. .SB
Amount of permanent land funds invested in farm loans . . SB
Interest charges of the Farm Loan Board ............................. .SB
Authority of State examiner to examine bank
holding companies .............................................
. . SB
Study of capitalization and ad valorem tax
structure of banks ......................................
. . HB

99
747
95
252
695
558
255
253
380
655
254

129
20
9
50
246
14
38
138
49
343

STATISTICS OF BANKS
AND DEPOSIT INSURANCE
PART FOUR

236

NUMBER OF BANKS AND BRANCHES

INSURANCE
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 receiv
ing stations, drive-in facilities and other facilities operated for
limited purposes are defined as branches under the Federal
Deposit Insurance Act, Section 3(o), regardless of the fact that in
certain States, including several which prohibit the operation of
branches, such limited facilities are not considered branches
within the meaning of State law.

DEPOSIT

Tabulations for all banks are prepared in accordance with an
agreement among the Federal bank supervisory agencies. Pro
vision of deposit facilities for the general public is the chief
criterion for distinguishing between banks and other types of
financial institutions. However, tru st companies engaged in gen
eral fiduciary business 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.

FEDERAL

Table 101. Changes in number and classification of banks and branches in the United
States (States and other areas) during 1969
Table 102. Changes in number of commercial banks and branches in the United States
(States and other areas) during 1969, by State
Table 103. Number of banking offices in the United States (States and other areas),
December 31, 1969
Grouped according to insurance status and class of bank, and by State or
area and type of office
Table 104. Number and deposits of all commercial and mutual savings banks (States and
other areas), December 31, 1969
G rouped by class and deposit size

OF BANKS
AND
BRANCHES
237

Mutual savings banks include all banks operating under State
banking codes applying to mutual savings banks.
Institutions excluded. Institutions in the following categories
are excluded, though such institutions may perform many of the
same functions as commercial and savings banks;
Banks which have suspended operations or have ceased to
accept new deposits and are proceeding to liquidate their assets
and pay off existing deposits;
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 gen
eral incorporation laws, regardless of whether 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 similar institutions except those mentioned in the
description of institutions included;
Branches of foreign banks, and private banks, which confine
their business to foreign exchange dealings and do not receive
“ deposits" as that term is commonly understood;
Institutions chartered under banking or trust company laws, but
operating as investment or title insurance companies and not
engaged in deposit banking or fiduciary activities;
Federal Reserve Banks $nd 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 following categories of banking
institutions:
National banks;
Incorporated State banks, trust companies, and bank and trust
companies, regularly engaged in the business of receiving
deposits, whether demand or time, except mutual savings banks;
Stock savings banks, including guaranty savings banks in New
Hampshire;
Industrial and Morris Plan banks which operate under general
banking codes, or are specifically authorized by law to accept
deposits and in practice do so, or the obligations of which are
regarded as deposits fo r deposit insurance;
Special types of banks of deposit; a cash depository in South
Carolina; regulated certificated banks, and a savings and loan
company operating under Superior Court charter, in Georgia;
government-operated banks in North Dakota and Puerto Rico; a
cooperative bank, usually classified as a credit union, operating
under a special charter in New Hampshire; a savings institution,
known as a “ tru st company," operating under special charter in
Texas; an employee's 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, Washington, 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 company charters which are not regularly engaged in
deposit banking but are engaged in fiduciary business other than
that incidental to real estate title or investment activities.

Noninsured

Insured

Total

Non
insured

Not
mem
bers
F.R.
Sys
tem

Members F.R.
System

Total
Total

Na
tional

State

Banks
of
de
posit

Net change during y e a r............................................................................... + 1 ,2 5 2 + 1 ,2 4 3
1,499
1,467
O ffices opened.............................................................................................
137
117
Banks
.........................................................................................
1,350
1,362
Branches ..........................................................................................*.

Offices closed...............................................................................................
Banks........................................................................................................
Branches

247
158
89

Change in classification
Among banks
Among branches

241
152
89

20
12
6
6

Banks ceasing operation..........................................................................
Absorptions, consolidations, and mergers (without FDIC a id ) ___
Closed-financial difficulties
Other liquidations...................................................................................

1
1

331
334

166
167

-3

-1

238
152

233
147

94
49
45

44
23

95
75

4
4

1
1

-2 8 9
-4 4
-2 4 5

+ 182
+75
+ 107

-1 6
-1 6

—1

-1
-1

1,261

7,603
7,511

159
160

49
50

497
501

-1

-4

4,669
4,716

-1 7

152
148
4

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

548
92
456

13,473
13,488

158
153
4

New banks
Banks added to c o u n t5

+65

189
7
182

13,681
13,698

117
117

+73

+635

656
16
640

374
377

-1 8

-1
1
1

-1 4 4

1,393
115
1,278

+ 125
-1 4
+ 139

137
132
5

+2
22

+687

1,416
135
1,281

+ 18
+ 17
+ 1

-2 1

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

345
337

+ 1,179 + 1,178

BANKS

Banks beginning operation

1,138
1,073

12,710
12,075

86
1
+ 1

Net change during year ..............................................................................

1,483
1,410

4,683
4,827

13,804
13,822

57
58

16,428
15,741

-1 7
-^17

14,178
14,199

219

33,821
32,643

34,099
32,920

+ 17
+ 17

Number of banks, December 31,1969 ........................................................
Number of banks, December 31, 1968..........................................................

221

CORPORATION

623
614

INSURANCE

34,959
33,716

35,582
34,330

1,201

19
3

-1 5

-4 7

-6 0

+92

135
130
5

115
115

16
16

7
7

92
92

19
15
4

152
147
4

147
143
4

49
47

75
74

4
3

-3
15
5
5

Non
insured

In
sured

Total

22
1

DEPOSIT

ALL BANKING OFFICES

Number of offices, December 31, 19692......................................................
Number of offices, December 31, 19682
..........................................

Non
deposit
trust
com
panies1

FEDERAL

In
sured

Type of change

Mutual savings banks

Commercial banks and nondeposit trust companies

All banks

238

Table 101. CHANGES IN NUMBER AND CLASSIFICATION OF BANKS AND BRANCHES IN THE UNITED STATES (STATES AND OTHER
AREAS) DURING 1969

1
1
1
1

2
9

5
3

2
2

6
6

5
5

1
1

Noninsured banks becoming insured..................

+ 18

Other changes in classification............................

-1

National succeeding State ban k............................
State succeeding national b a n k .............................
Admission of insured bank to FRS.......................
W ithdrawal from FRS w ith continued insurance.
Insured bank becoming noninsured ba n k...........

-1 8

+ 18

-1

-1 4
+ 16
-3 0

-1

-4 6

-8
+1
-4 1
-1
+ 3

Changes not involving number in any c la s s ...
in
in
in
in
in

t it le ..........................................................
location....................................................
title and location...................................
name of location....................................
location w ith in c ity ................................

Changes in corporate powers.............................................
Converted to commercial ban king....................................
Granted trust powers (State nonmember banks o n ly ).

247
17
18

245
17
18

237
17
18

279

278

274

273

10
1
68

1
68

-8
-1

-1 7

+ 27
+ 41

122
5
9
5
185

8
1

NUMBER

Change
Change
Change
Change
Change

+ 16
+ 59

20,418
19,222

20,348
19,155

11,759
11,025

3,482
3,566

5.107
4,564

62
59

986
909

807
739

179
170

+ 12 + 1,196 + 1,193

+ 734

-8 4

+ 543

+ 77

+68

640

182

456

BRANCHES

Net change during y e a r............................................................

21.404
20,131

21.155
19.894

+ 1,273 + 1.261

132

130

1,194

Branches discontinued...........................................
Facilities designated by Treasury......................
Branches..................................................................
Branches and/or facilities deleted from count.

Facilities designated by Treasury......................
Absorbed banks converted to branches.............
Branches replacing head offices relocated........
New branches.........................................................
Branches and /or facilities added to count3.......

12
..... 2

1,281
4

1,278
4

1,185

128
19
1,119

127
19
1,117

20
12
6
6

20
11
6
6

Other changes in classification.....................................................
Branches changing class as a result of conversion....................
Branches transferred through absorption, consolidation, or merger
Branches of insured banks, withdrawing from FRS..................

6
6
+1
+1

11
86
6
74
6
+1
+1

180
439

Changes not involving number in any class.............................
Changes in operating powers of branches..................................
Branches transferred through absorption, consolidation, or merger
Changes in title , location, or name of location...........................

191
460

190
459

68
8

12
2

556
5

168

6
1

-245
-187

+ 29

-1 1
-4 7

117
241

....

'" 4

1
1

1
68

11
21

10
20

+ 107
+ 77
-1 7
+47

54
140

" “ 3

" ' 15
5

+ 139

+ 110

47
9
393

BRANCHES

1.350
4

AND

1,362
4

Branches opened for business.............................

249
237

OF BANKS

Number of branches, December 31, 19692..............................
Number of branches, December 31, 19682..............................

1Includes one trust company member of the Federal Reserve System.
2 Includes facilities established at request of the Treasury or Commanding Officer of Government installations, and also a few seasonal branches that were not in operation as of December 31.
3 Offices opened prior to 1969 but not included in count as of December 31, 1968.

239

240

Table 102. CHANGES IN NUMBER OF COMMERCIAL BANKS AND BRANCHES IN THE UNITED STATES
(STATES AND OTHER AREAS) DURING 1969, BY STATE

Dec. 31, 1969
Banks

O th e r A re a s ............

19,222
19,013

-1 7
-1 7

221

209

N.A.

+12

268

247
59
299
155
2,900

268

N.C.

+11

13
248
162

236
55
278
141
2,793

257

+10

100

19
14
461

270
129
149
74
601

428
26
1,074
415

298
61
306
359
209

673
601
346
229
43

10
12

249
155

Georgia........................
H aw aii..........................
Idaho............................
Illin o is ..........................
Ind ia n a ........................

433
26
1,088
410

Io w a .............................
Kansas.........................
Kentucky.....................
Louisiana.....................
M aine...........................

603
345
231
44

M aryland.....................
Massachusetts............
M ichigan......................
M innesota....................
M ississippi..................

161
332
724
181

668

122

668
136
442

405
79
29

491
713
1,153

122

-2
-1
+1
-7

+1,196
+1,184

+21

+14
+107

130
129

Other

New
1,130
1,119

152
151

147
146

10
3
21
15
99

1
2
2

1
4

+30

100

+2
+1

-4
N.A.
N.A.
+14

2
27
2
1
3

248
123
142
45
576

+5
N.A.
N.A.
+14
-5

+22

23
8
8
29
21

375
78

282
61
286
329

-5

200

+2
-1
+2
+1

469
683

N.C.
+3

321

158
338
723
185

1,101
10

85
5
39
81
52

667
135
441
9
77

85
5
37
78
41

296

-6
+1
-4

+1
+'1
+1
-1
-1

N.C.
+4

+7
+29
+25

+16
N.C.

+20

+30
+9

+22

+30
+52
N.A.
+25
N.C.
N.C.

+11

Absorptions

1
2

3
6
4
1
1

17
1
20
30
10

19
32
48

3
1
10

2
1
8

3
1
3
2
7

Branches

2
1

1
1
4

1
4

Other

Branches
74
74

Other

12
12

CORPORATION

13,698
13,678

New

INSURANCE

20,418
20,197

267
62
19
14
475

Branches

13,681
13,661

Colorado......................
Connecticut.................
Delaware.....................
D istrict of Colum bia.
F lorida.........................

M issouri.......................
M ontana............ ..........
Nebraska.....................
Nevada........................
New Hampshire.........

Banks

DEPOSIT

State
Alabam a....................
A laska..........................
A rizo na........................
Arkansas.....................
C a lifornia....................

Branches

FEDERAL

T o ta l U n ite d States
50 States and D .C ...

Banks

Branches

Banks

Dec. 31, 1968

Branches

Ceasing operation in 1969

Beginning operation in 1969

Net change
during 1969

In operation
State

New Jersey...............................
New M exico...............................
New Y o rk...................................
North Carolina..........................
North Dakota............................

228
64
320
109
169

891
121
2,298
1,016
68

229
63
319
121
169

797
114
2,214
930
69

-1
+1
+1
-1 2
N.A.

+94
+7
+84
+86
-1

12
1
4
1

84
7
92
75

O hio............................................
Oklahoma..................................
Oregon.......................................
Pennsylvania............................
Rhode Is la n d ............................

521
426
51
492
13

1,217
58
319
1,616
161

525
424
50
509
13

1,130
55
307
1,519
158

-4
+2
+1
-1 7
N.A.

+87
+3
+12
+97
+3

1
2
2
1

82
3
10
85
6

South C arolina..........................
South Dakota............................
Tennessee.................................
Texas..........................................
U tah............................................

105
163
305
1,166
51

380
94
449
67
126

118
165
303
1,151
54

351
91
417
63
115

-1 3
-2
+2
+15
-3

+29
+3
+32
+4
+11

Verm ont.....................................
V irg in ia ......................................
Washington...............................
West V irg in ia ............................
W isconsin...................................
W yoming....................................

44
233
92
195
604
70

78
765
523
5
252
2

45
237
94
195
603
70

71
709
487
4
223
1

-1
-4
-2
N.A.
+1
N.A.

+7
+56
+36
+1
+29
+1

13
7

16
2
183
20

i" '
i
; n
2
175
r

-1
N.A.
+1
N.A.

+3
N.A.
+8
+1

10
2

2
18

1
18

20
1
33
6
7

13
2

2
3

6
49
33
1
29
1

1
8
5

1
8
4

2
20

4
2
3

6
3
4
3

1
1

BRANCHES

8
1

AND
241

3
13

OF BANKS

N.A. = No A ctivity
N.C. = No Change

12
7

3
13

NUMBER

O ther Areas
Pacific Island s..........................
Panama Canal Zone................
Puerto Rico...............................
Virgin Islands...........................

242

Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1969
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

Noninsured

Insured
In
sured

Total

Non
insured

Na
tional
35,582
14,178

34,959
13,804

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

Non
deposit
trust
com
panies3

State

623
374

34,099
13,681

33,821
13,473

16,428
4,669

4,683
1,201

12,710
7,603

221
159

57
49

1,483
497

1,138
331

345
166

Total

345
166

98.5
97.8

99.4
98.9

76.7
66.5

986

807

179

99.0

99.8

81.8

86.7
50.0

86.7
47.4

100.0
100.0

90.0

216
159

100.0
100.0

100.0

98.6
91.7

98.6
90.0

11,759

3,482

5,107

986

50 States and D.C.— a ll o ffic e s .............
B anks.........................................................

35,340
14,157

34,750
13,794

590
363

33,858
13,661

33,613
13,464

16,384
4,668

4,683
1,201

12,546
7,595

189
149

133
16

56
48

21,183

20,956

227

20,197

20,149

11,716

3,482

4,951

43
5

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

O ther Areas— a ll o ffic e s .........................
Banks.........................................................

242
21

209
10

33
11

241
20

208
9

44
1

164
8

1
7

1
1

32
10
7

221

199

156

515
268

265
88

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

Branches

10,007
4,150
10
11
221

9,750

4,044

2
8

199

257
106
8
3
22

9,802
3,859
9
11

9,626
3,838

1
8

3,032
1,636

752
449

5,842
1,753

44
5

205
291

1
1

125
206

124
206

1
1

81
85

97.9
97.6

22.2
72.7

98.6
99.6

12.5
72.7

60.5
70.8

100.0

State
A labam a— a ll o ffic e s
Banks

Unit banks
Banks operating branches

Branches

A laska— a ll o ffic e s
.. ..
Banks.........................................................

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

Branches

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

A rizo n a — a ll o ffic e s
Banks

Unit banks
Banks operating branches

Branches

A rkansas— a ll o ffic e s
Banks

Unif banks
Banks operating branches

Branches....................................................
FRASER

Digitized for

515
268

188
80

515
268

188
80

247

71
12

70
11

59
311
12

5
7

188
80

247

177

69
10

68
9

58
5

311
12

207
4

4
7

1
1

5
7

299

404
249

401
246

155

169
80

188
80

47
41

166
80

3
7
5
7

3
3

2
7
5
7

34
21

15
6
13

2
2

126
33

10
4

2
2
2

80.0
100.0

66.7
100.0

100.0

19
1

85
7

100.0
100.0

100.0

99.5
99.2

299

203

147
68

32
12

222
166

155

5
7

100.0
100.0

401
246

35
33

100.0

299

166
80

2
2
2

1
1

100.0
100.0

404
249

169
80

100.0
100.0

126
40

2
2

1
1

98.8
100.0

100.0

100.0
100.0
98.8
100.0

100.0

100.0
100.0

100.0

CORPORATION

1,137
330

20,348

140
19

INSURANCE

81.8

1,482
496

20,418

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

60.7
70.8

99.7

249

752

76.7
66.6

98.9

21,155

3,032
1,637

98.6
99.5

179

21,404

9,627
3,846

99.4
98.8

807

449

5,843
1,760

9,811
3,870

98.4
97.7

97.8
97.5

265
109

10,017
4,161

Mutual
savings
banks

81
85

206
291

9,752
4,052

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

Com
mercial
banks
of
deposit

All
banks
of
de
posit

DEPOSIT

U n ited States— a ll o ffic e s ......................
Banks.........................................................

Non
insured

In
sured

Banks
of de
p osit2

Not
mem
bers
F. R.
Sys
tem

Members F. R.
System

Total

FEDERAL

State and type of bank
or office

Percentage insured1

Mutual savings banks

Commercial banks and nondeposit trust companies

A ll banks

C alifornia— all o ffices.........
Banks....................................

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

3,055
155

124

3,043
148

26
122

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

2,900

2,895

Colorado— all o ffices............
Banks......................................

279
267

235
223

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

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

Connecticut— all o ffic e s .. .
Banks......................................
Branches..............................

Delaware— all offices ........
Banks....................................
Branches..............................

D.C.— all offices...................
Banks....................................

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

Florida— all offices ...............
Banks....................................
Branches...............................

47
84
541

110

10
11
89
114
14

326
97

135
7

175
26

116
4

3
3

212
11

114
6

149

20
42

10
9

10
10

114
14

3
1

1
13

100

504
475
29

450
25

703
433

336
97

270

5
4

10
9

1
13

5
5

17
42

140
11

3
8

205
69

27
42

99.7
98.5

99.6
96.7

100.0
100.0

95.7
100.0

89.5
100.0

100.0
100 0

12
2

100.0
100.0

100.0

12
7

221
60

270

161

135
7

8
1

12
5
7

268
252

239

291
60

6
6

121
33
7

4
26

3
3

10
10

11
5

100.0
100.0

100.0

99.6
99.6

3
1

100.0
100.0

99.6
99.6

99.6
100.0

98.6
97.7

100.0

97.0
100.0

100.0
100.0

100.0
5
4

100.0
100 0

100.0
100.0

100.0

127

16
421
351

100.0
100.0
100.0
100.0

’ 1

693
423

107

205
69

3
5

100.0

77
11

115
8

1
1

82.8
100 0

100.0

149

2
2

84.2
83.5

100.0

12
H

82.8
100.0

100.0

175
26

30
30

84.2
83.5

100.0
100.0

136

175
26

119
28

198
11

100.0

44
44

1
10

100.0

136

221
209

326
97

499
470

445
25

100.0
100.0

112

128

149

3
2

""4

129

12
14

100.0
100.0

100.0

100.0
100.0

100.0

100.0
100.0

100 0

100.0
100.0

243

175
26

1
13

Idaho— all o ffic e s ................
Banks....................................

149

256
11

114
14

128

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

129

8
5

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

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

18
17

98
19

270

127
120

98
19

270

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

235
223

10
11

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

140

279
267

110
21

693
423

Hawaii— all o ffices.............
Banks....................................

44
44

202

703
433

336
97

294

405

445
25

270

12
7

5
2

2,331

405

499
470

'’ 9

365
71

2,895

541

504
475

279
9

2,900

229
27
7

Georgia— all o ffices............
Banks....................................

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

12
56

464
59

100

2,399
68

467
62

44
84

100
450
25

26
122

669
128

124

3,043
148

BRANCHES

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

672
131

AND

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

3,055
155

OF BANKS

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

212
11

5
2

NUMBER

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

256

12
7

244

Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1969—CONTINUED
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

In
sured

Noninsured

Total
Na
tional
Illin o is — a ll o f f i c e s .............................
Banks.........................................................

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

Branches

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

Branches

. . . .

Iowa— a ll o ffic e s
Banks.
....................................
Branches

Kansas— a ll o ffic e s
Banks
.................................................

Unit banks
Banks operating branches

Branches

K e n tu cky— a ll o ffic e s
Banks
....................

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

Branches

Lou isia n a — a ll o ffic e s
Banks

Unit banks
Banks operating branches

Branches

1,015
414

223
191

1,014
71

1,012
411

220
191

601

966
668

956
658

454
214

214

664
603

663
602

298

543
59

651
345

646
340

212
133

3
3

10
10

61
5
5

306

590
231

589
230

1
1

359

107
123

359

89
83

603
584

1
1

2
2

77
6

565
19

1,011
410

1,008
407

441
122

133
69

434
216

2
2

219
191

216
191

51
71

43
26

9
9

218

966
668

956
658

150
100

78
54

728
504

214

61
39

298

224

663
602

201
172

664
603

544
59

543
59

651
345

646
340

212
133

207
133

145
27

37
17
44
37

216
80

61
14

346
158

418
393

368
25

165
81

306

136

123

590
231

589
230

215
49

47
10
1

327
171

108
123

359

107
123

359

15
34

166

1
1
1

369
246

91
80

156

A ll
banks
of
de
posit

99.9
99.9

5
5

1
1

4
4

Com
mercial
banks
of
deposit

99.9
100.0

99.8
99.5

99.1
100.0

100.0

99.1
100.0

100.0

99.1
98.7

98.0
100.0

100.0

99.8
99.8

99.8
100.0

100.0

99.2
98.6

97.6
100.0

100.0

99.8
99.6

99.1
100.0

100.0

Mutual
savings
banks

99.9
99.9

99.9
100.0

100.0

122
94

319

454

Non
insured

601

467
418

372
46

298
1
1

1,159
1,085

1,014
71

601

207
133

108
123

1,162
1,088

1,017
71

298

544
59

3
3

In
sured

Total

99.1
100.0

100.0

100.0
100.0

100.0

CORPORATION

Unit banks
Banks operating branches

1,159
1,085

1,017
71

Non
deposit
trust
com
panies3

INSURANCE

In d ia n a — a ll o ffic e s ..................................
Banks.........................................................

1,162
1,088

State

Banks
of de
po s it2

DEPOSIT

Not
mem
bers
F. R.
Sys
tem

Members F. R.
System

Total

FEDERAL

Total

Percentage insured1

Noninsured

Insured
State and type of bank
or office

Mutual savings banks

Commercial banks and nondeposit trust companies

A ll banks

Maine— all offices...............
Banks....................................

308
76

301
72

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

232

229

661
127

653
126

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

M aryland— all offices..........
Banks....................................

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

27
49

47
79

7
4

253
44

247
41

114
21

209

206

8
1

613
122

605
12 1

291
47

3
1

10
34

47
75

8
33

47
74

4
17

13
34

67
7

1
6

68
14

6
3

55
32

54
31

247
67

8
1

48
5

2
12

527

491

484

244

180

Massachusetts—-all offices
Banks....................................

1,261
334

909
164

352
170

874
161

866
156

493
86

174
16

199
54

6
4

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

212
927

745

182

713

M ichigan— all o ffic e s .........
Banks....................................

1,485
332

1,481
330

4
2

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

1,153

1,151

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

Minnesota— all o ffic e s ........
Banks...................................

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

Mississippi— all o ffic e s ...
Banks....................................

133
199

735
725

719

10
502
181

39
125

132
198

732
722

716
6

Missouri— all o ffices............
Banks....................................

753

668

746
661

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

583
85

576
85

7
1
1

141
136

140
135

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

Nebraska— all offices..........
Banks....................................

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

481
442

405
37

130
5

476
437

400

1
5
5

633
98

519
105

329
127

3
1

1
1

535

414

64
202

502
498

3
3

1,485
332

1,481
330

1,153

1,151

133
199

734
724

718
6

37
119

132
198

731
721

715
6

502
181

73
108

26
72

203
197

195
2

43
62
26
26

494

72.2
49.2

99.3
97.5

214

179

80.5

99.7

82
91

2
6

80
85

32.0
59.2

99.8
99.7

100.0
99.5
1
1

1
1

92.5
99.2

141
136

140
135

50
48

43
41

47
46

75
22

46
2

148
126

105
21

57
16
39

11
1

444

4
4
4

3
3

99.8
99.6
99.6

1
1

315
299

284

5
5

99.3
100.0

99.6
100.0

100.0
100.0
99.3
100.0

100.0

100.0
100.0

100.0

100.0
100.0

100.0

100.0
100.0

100.0

11.1
4.6

6.6
16.4

100.0

2.4

99.8
99.7

99.6
99.6

99.6
100.0

94.1
100.0

100.0
99.5

99.8

100.0
100.0

344
165

99.5
99.4

175

43
8

99.5
99.4

312
137

538
491

387
173

100.0

476
437

98.6

100.0

6
32

89
73

400

98.7

171
38
133

481
442

100.0

100.0
98.7

100.0

119
97

405
37

98.7
99.2

98.8
99.2

100.0
98.7

100.0
100.0

321

130
5

100.0

746
661

131
5

98.6

100.0
100.0

321

576
85

98.7

98.2
96.9

80.0
97.1

753
668

583
85

97.6
93.2

88.9
98.0

100.0

100.0
100.0

245

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

131
5

145

407

73
108
7

158

710

502
181

3
1

"Y e

321

Montana— all offices............
Banks......................................

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

16
38

21
65

40
121

97.7
94.7

BRANCHES

73
108

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

3
3

502
181

73
108

321

1
1

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

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

83
87

AND

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

122

1
1

OF BANKS

534

...........

16
15

NUMBER

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

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

17
15

2
1

246

Total

Not
mem
bers
F. R.
Sys
tem

Members F. R.
System

Total
Total

Na
tional

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

R ra n r hoc

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

R ra n rh p c

New Mexico— all o ffices..........................
Banks...........................................................

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

New York— all o ffices...............................
Banks...........................................................

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

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

North Carolina— all o ffices.....................
Banks...........................................................

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

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

2
6

1
3

27
22

173

170

128

125

107

70
87

104

1,174

1,172

249

247

65
184

67
87

63
184

18
4

741

199

177

137

48
28

45
28

27
23

1,119

1,117

228

56
172

226

54
172

80
107

7
29

891

604

163

124

185

101

3
3

5
20

17
47

121

17
47

121

17
47

121

6
5

925

9
24
1,339

1 089

157

Zj D

1 1p
110

173

' 80

13
6

2,609

2,601

2,298

2,290

1,125

1,118

1,125

1,118

519

109

108

109

108

37
72

1,016

37
71

1,010

37
72

1,016

37
71

1,010

4
19

496

1
1

100.0

100.0
100.0

55
21

9
12

115
595
83

512

100.0
100.0

100.0

_
/

433

99.1

99.0

6
5

122

95.6

93.9

311

30
92

100.0
100.0

100.0

2,585

100.0

100.0
100.0

iL\}

1,009

100.0

22
9

100.0

2,618

103

93.8
100.0

1,166

96.1

95.7
100.0

100.0

179

97.2

100.0

417

134
186

97.7

100.0
100.0

3,018

100.0

98.3

100.0

442

18
7

100.0

22
9

9
12

Mutual
savings
banks

100.0

3,051

146
271

100.0
100.0

164
278

45
31

185

925

100.0

100.0
100.0

100.0

Com
mercial
banks
of
deposit

100.0

1
2

2
6

All
banks
of
de
posit

91.8
97.8

89.9
96.8

99.7

99.4
99.1

99.4

100.0
98.6
99.4

99.1

100.0
98.6
99.4

100.0
100.0

100.0

100.0
100.0

100.0

CORPORATION

New Jersey— all o ffices...........................
Banks...........................................................

Non
insured

INSURANCE

New Hampshire— all o ffices...................
Banks.'.........................................................

Total

In
sured

DEPOSIT

Nevada— all o ffices....................................
Banks...........................................................

State

Banks
of de
posit2

Non
deposit
trust
com
panies3

FEDERAL

Non
insured

In
sured

Percentage insu re d 1

Noninsured

Insured
State and type of bank
or office

Mutual savings banks

Commercial banks and nondeposit trust companies

All banks

North Dakota— all o ffic e s ..
Banks......................................

237
169

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

Ohio— all o ffices....................
Banks......................................

1,739
522

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

120

254
268

1,217

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

484
426

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

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

371
55

1,737
520

252
268

483
425

370
55

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

320

Pennsylvania— all o ffic e s ..
Banks......................................

2,198
499

2,187
490

245
254

2
2

20
30

237
253

120
49

1,738
521

253
268

1,217
1
1

484
426

371
55

2
2

11
9

8
1

53
42

32
10

1,736
519

911
217

451

122

1,217

694

329

483
425

261
218

370
55

142

178
40

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

161

153

1
1

485
105

484
104

245
20

380

225

257
163

88
33

166
139

449

749
301

163
138

448

125
38

5
4

3
1

754
305

166
139

449

42
62

125
38

749
301

163
138

448

4
16

24
9

338
77

17
60

261

67
74

90.9
100.0

90
7

99.6
98.8

99.9

72
7

95.9
90.0

94.3
84.6

"l
6

1
6

100.0
100.0

1
6

100.0

97.9
99.6

90.0

100.0

97.9
99.6

84.6

96.5

95.0

99.8
99.0

228
78

150

100.0

29
25
22

140
105

100.0
100.0

100.0

367
213

99.5
99.0

154

99.8

3
3

11
6

35
43

79
26

140
73

97.7
100.0

100.0
100.0
98.8
99.3

97.7
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
98.8
99.3

247

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

2
1

100.0

BRANCHES

43
62

16
22

100.0
100.0

AND

754
305

99.5
96.1

Tennessee— all offices........
Banks......................................

99.5
96.2

2
1

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

100.0

125
38

100.0

399

125
38

100.0
100.0

231

’ ’ "20

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

100.0
100.0

173

90
7

94
5

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

197
185

540
141

157
158

99.2
100.0

100.0

258
27
12

236
247

97.1

100.0

1,299
315

244
248

97.9
98.2

194

2,097
483

164
11

380

99.2
100.0

2,108
492

174
13

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

108
72

10
2

99.9
99.6

97.1

236
18

42
62

99.9
99.6

241

246

484
104

374
180

319

Rhode Island— all o ffic e s ..
Banks......................................

43
62

98.3
98.0

319

984

485
105

98.3
98.0

116
38

1,614

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

19
3

4
7

1,616

South Carolina— all offices
Banks......................................

97.9
98.2

252
11

20
29

218

120
83
37

368
49

22
29

1,697

226

173

370
51

1,699

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

251
268

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

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

6
4

118
48

OF BANKS

370
50

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

232
166

372
52

22
30

237
169

1,217

Oregon— all o ffices...............
Banks......................................

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

5
3

2
1

NUMBER

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

232
166

118
48

248

Non
insured

Total
Na
tional

Unit banks
Banks operating branches
U tah— a ll o ffic e s
Banks

Unit banks
Banks operating branches

Branches

V e rm ont— a ll o ffic e s
Banks ........................
Branches
V irg in ia __a ll o ffic e s
Banks

Unit banks
Banks operating branches

Branches

W ashington— a ll o ffic e s
Banks

Unit banks
Banks operating branches

Branches4

W est V irg in ia — a ll o ffic e s
Banks

Unit banks
Banks operating branches

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

1,093
64

30
21

126

24
26

998
233

85
148

177
51

130
50

9
9

23
26

67
177
51

30
21

126
129
49

1,224
1,157

1,102
64

177
51

30
21

1,233
1,166

1
1

99.2
100.0

100.0

75
10

34
7

68
34

100.0
100.0

100.0

6
4

A
27

998
233
85

552
103

28
75

21
13

100.0
100.0

100.0

285
88

100.0
100.0

100.0

99.9
99.0

99.8
98.9

100.0
100.0

100.0

8
6

20
22

100.0
100.0
100.0

7
10

161
42

100.0
100.0

1
i

50
17

12
U

100.0
100.0

37
51

100.0
100.0

765

449

119

197

614
91

445
27

45
8

124
56

573

523

418

200
195

81
81

36
34

83
80

100.0
100.0

190
5

100.0

573

45
56

190

765

673
100

44
56

190

1
1

43
49

42
49

190
5

11
16
81

3
5

28
28

77
3

1
1

59
9

2
7

97.8
100.0

100.0
100.0

615
92

765
674
101

Mutual
savings
banks

99.3
99.2

100.0

148

99.2
100.0

71
26

85
148

99.3
99.2

9
9

126

19
24

612
572

Com
mercial
banks
of
deposit

533
39

121
43

20
24

63
56

A ll
banks
of
de
posit

49
7
7

126

998
233

85
148

30
21

549
529

511
18

122
44
78

998
233

1,093
64

Non
insured

In
sured

Total

97.7
100.0

100.0
100.0

CORPORATION

Unit banks
Banks operating branches

1,224
1,157

1,102
64

Non
deposit
trust
com
panies8

INSURANCE

Branches

1,233
1,166

State

Banks
of de
p osit2

DEPOSIT

Not
mem
bers
F. R.
Sys
tem

Members F. R.
System

Total

FEDERAL

In
sured

Total

Percentage insured 1

Noninsured

Insured
State and type of bank
or office

Mutual savings banks

Commercial banks and nondeposit trust companies

All banks

Wisconsin— all o ffic e s .........
Banks......................................

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

Branches.................................
Wyoming— all o ffices ...........
Banks......................................

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

O ther Areas
Pacific Islands— all o ffic e s 5.
Banks..........................................

855
603

856
604

852H
6001

447

252

156

444 1

252

156

448

252

252 |

72
70

68
2
2

68
2

2
2

178

121

610
435

99.9
99.8

100.0

175

100.0

100.0
100.0

320
115

99.8

100.0
100.0

100.0

37.5

92.4
64.3

92.3
61.5

94.5

80.8

Branches6..................................

OF BANKS

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

Panama Canal Zone— all offices.
Banks.................................................

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

Branches 7 .........................................
Puerto Rico— all o ffic e s ...
Banks......................................

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

197

182

196

181

9
2

Branches 8 ..............................

10
183

173

183

Virgin Islands— all offices..
Banks......................................

27
7

21
1

27
7

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

Branches9 ..............................

173

21
1

163

155

50.0
70.0

33.3
70.0

16.7

...

100.0
20

100.0

’

100.0

100.0
100.0

100.0

249

BRANCHES

100.0

100.0
100.0

100.0

AND

100.0

100.0
100.0

100.0

99.8

NUMBER

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

859
607

451
156

250

G R O U P E D A C C O R D IN G TO IN S U R A N C E S T A T U S A N D CLASS OF B A N K , A N D BY S TA T E OR A R E A A N D TY P E OF OFFIC E

INSURANCE
CORPORATION

Mariana Islands: 5 branches— (4 insured on Guam and 1 noninsured on Saipan)—
operated by a national bank in California.
Guam: 2 insured branches—operated by an insured bank in Hawaii (not member of
F. R. System ); and a national bank in New York.
Caroline Islands: 2 noninsured branches (1 on Palau Islands (Koror) and 1 on Ponape
Island (Kolonia)—operated by an insured bank ih Hawaii (not member of F. R.
System).
Marshall Islands: Kwajalein— 2 noninsured branches operated by an insured bank in
Hawaii (not member of F. R. System). Majuro— 1 noninsured branch operated by
a national bank in California.
Midway Islands on Sand Island: 1 noninsured branch operated by an insured bank in
Hawaii (not member of F. R. System).
Wake Island: 1 noninsured branch operated by an insured bank in Hawaii (not member
of F. R. System).
7 Panama Canal Zone: 2 noninsured branches operated by 2 national banks in New York.
8 Puerto Rico: 18 insured branches operated by 2 national banks in New York.
9 Virgin Islands: 13 insured branches operated by 2 national banks in New York; and
1 national bank in California.

DEPOSIT

1 Nondeposit trust companies are excluded in computing these percentages,
in c lu d e s 12 noninsured branches of insured banks; 10 branches in the Pacific Islands
and 2 in the Panama Canal Zone.
3 Includes one trust company in Massachusetts, member of the F. R. System, operating
one branch.
4 Massachusetts: 1 branch operated by a noninsured bank in New York.
New York: 8 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.
Pennsylvania: 2 branches— 1 operated by a noninsured bank in New York and 1 operated
by a national bank in New Jersey.
Washington: 2 branches operated by a national bank in California.
5United States possessions (American Samoa, Guam, Midway Islands, and Wake Island);
Trust Territories (Kwajalein, Majuro, Palau Islands, Ponape Island, Saipan and
Truk).
6 Pacific Islands: 16 branches.
American Samoa: (Pago Pago); 1 noninsured branch— operated by an insured bank in
Hawaii (not member of F. R. System).
Caroline Islands on Truk; 1 noninsured branch— operated by a national bank in Cali
fornia.

FEDERAL

Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1969—CONTINUED

Table 104. NUMBER AND DEPOSITS OF ALL COMMERCIAL AND MUTUAL SAVINGS BANKS,
(STATES AND OTHER AREAS), DECEMBER 31, 1969
BANKS GROUPED BY CLASS AND DEPOSIT SIZE
Insured commercial banks
All
banks

Members F.R. System
Total
National
21
120
758
1,184
1,403
584
272
253
43
31

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

14.178

13,473

4,669

203,986
1,661,684
12,079,774
25,150,159
51,120,600
41,935,828
40,588,288
107,829,001
60,094,729
166,865,773

170,693
1,633,715
11,963,707
24,798,466
48,879,720
37,670,889
32,960,204
85,316,628
41,701,511
151,894,132

15,847
188,479
2,724,653
8,764,839
21,959,612
20,145,996
18,732,803
54,329,140
31,183,641
99,798,781

507,529,822

436,989,665

257,843.791

A m oun t o f deposits
Less than 1 m illion
••- •
1 to 2 m illion
............................................
2 to 5 m illio n ............................................................................................
5 to 10 m illion .......................................................................................
10 to 25 m illio n ........................................................................................
25 to 50 m illio n ........................................................................................
50 to 100 m illio n ......................................................................................
100 to 500 m illio n ...................................................................................
500 m illion to 1 billion
..............................................
1 billion or m ore......................................................................................
T o t a l....................................................................................................

117
15
22
14
14
8
8
10

7,603
1,201
(In thousands of dollars)
151,391
3,455
1,365,177
80,059
8,393,134
845,920
13,930,204
2,103,423
5,028,179
21,891,929
12,941,501
4,583,392
9,895,101
4,332,300
17,305,260
13,682,228
8,067,252
2,450,618
52,095,351

208
33,293
26,110
72,475
105,429
264,243
311,296
551,066
1,635,781

94,444.591

2,999,693

84,701,283

9
15
71
63
60
78
26
9
331

36,511
116,969
1,257,272
2,196,501
4,275,027
18,212,370
17,801,557
14,971,641
58,867,848

1
2
17
41
49
40
15
1
166

1,859
7,081
129,295
719,365
1,757,142
2,801,991
2,664,222
591,661
8,672,616

251

205
881
2,501
1,961
1,460
381
142
68
4

5
50
235
289
317
131
62
82
12
18

Non
insured

Insured

BRANCHES

231
1,051
3,494
3,434
3,180
1,096
476
403
59
49

Mutual savings banks

AND

348
1,067
3,527
3,480
3,306
1,216
584
506
86
58

Non
insured
banks
and tru s t
companies

OF BANKS

N um ber o f banks
1
than 1 m illion
1 to 2 m illion
..
........................................................
2 to 5 m illio n ............................................................................................
5 to 10 m illio n ..........................................................................................
10 to 25 m illio n ........................................................................................
25 to 50 m illio n ........................................................................................
50 to 100 m illio n ......................................................................................
100 to 500 m illio n ...................................................................................
500 m illion to 1 billion
..................
1 billion or more
..................

State

Non
members
F.R. System

NUMBER

Deposit' size
(in dollars)

ASSETS AND LIABILITIES OF BANKS
Table 105. Assets and liabilities of all commercial banks in the United States (States and
other areas), June 30, 1969
B a n k s g ro u p e d by in s u ra n c e s ta tu s a n d class o f b a n k

Table 106. Assets and liabilities of all commercial banks in the United States (States and
other areas), December 31, 1969
B a n k s g ro u p e d by in s u ra n c e s ta tu s a n d class o f b a n k

Table 107. Assets and liabilities of all mutual savings banks in the United States (States and
other areas), June 30, 1969, and December 31, 1969
B a n k s g ro u p e d by in s u ra n c e s ta tu s

Table 108. Assets and liabilities of insured commercial banks in the United States (States and
o th e r a re a s ), D e ce m b e r c a ll dates, 1 9 6 1 , 1 9 6 5 -1 9 6 9

Table 109. Assets and liabilities of insured mutual savings banks in the United States (States
and other areas), December call dates, 1961, 1965-1969
Table 110. Percentages of assets and liabilities of insured commercial banks operating
throughout 1969 in the United States (States and other areas), December 31,
1969
B a n ks g ro u p e d by a m o u n t o f d e p o sits

Table 111. Percentages of assets and liabilities of insured mutual savings banks operating
throughout 1969 in the United States (States and other areas), December 31,
1969
B a n ks g ro u p e d by a m o u n t o f d e p o s its

Table 112. Distribution of insured commercial banks in the United States (States and other
areas), December 31, 1969

B a n k s g ro u p e d a c c o rd in g to a m o u n t o f d e p o s its a n d by ra tio s o f s e le c te d ite m s
to a ss e ts o r d e p o s its

AND
LIABILITIES
OF BANKS
253

Individual loan items are reported gross. Installment loans, how
ever, are ordinarily reported net if the installment payments are
applied directly to the reduction of the loan. Such loans are reported
gross if, under contract, the payments do not immediately reduce
the unpaid balances of the loan but are assigned or pledged to
assure repayment at maturity.
The category “ Trading account securities" was added to the
condition report of commercial banks in 1969 to obtain this segre
gation for banks that regularly deal in securities with other banks
or with the public. Banks occasionally holding securities purchased
for possible resale report these under “ Investment securities."
Assets and liabilities held in or administered by a savings, bond,
insurance, real estate, foreign, or any other department of a bank,
except a trust department, are consolidated with the respective
assets and liabilities of the commercial department. “ Deposits of
individuals, partnerships, and corporations" includes trust funds
deposited by a trust department in a commercial or savings depart
ment. Other assets held in tru st are not included in statements of
assets and liabilities.
Demand balances with and demand deposits due to banks in the
United States, except private banks and American branches of
foreign banks, exclude reciprocal interbank deposits. (Reciprocal
interbank deposits arise when two banks maintain deposit accounts
with each other.)
Asset and liability data for noninsured banks are tabulated from
reports pertaining to the individual banks. In a few cases, these
reports are not as detailed as those submitted by insured banks.
Additional data on assets and liabilities of all banks as of June
30, 1969, and December 31, 1969, are shown in the Corporation's
semiannual publication Assets and Liabilities, Commercial and
Mutual Savings Banks.
Sources of data. Insured banks: see p.275; noninsured banks:
State banking authorities; and reports from individual banks.

ASSETS

Before 1969, statements of assets and liabilities were submitted
by insured commercial banks on either a cash or an accrual basis,
depending upon the bank’s method of bookkeeping. Beginning in
1969, insured commercial banks having total resources of $50
million or more (the cut-off will fall to $25 million after December
31, 1969) report their assets and liabilities on the basis of accrual
accounting. Where the results are not significantly different, par
ticular accounts may be reported on a cash basis. Banks not sub
ject to full accrual accounting are required to report the installment
loan function on an accrual basis, or else to submit a statement of
unearned income on installm ent loans carried in surplus accounts.
All banks are required to report income taxes on an accrual basis.
Beginning in 1969, all majority-owned premises subsidiaries are
fully consolidated. Consolidation is required of other majorityowned domestic subsidiaries (but not domestic commercial bank
subsidiaries) meeting either of the following criteria: any sub
sidiary in which the bank's investment represents 5 percent or
more of its equity capital accounts, or any subsidiary whose gross
operating revenues am ount to 5 percent of the bank’s gross revenues.
In the case of insured banks with branches outside the 50 States,
net amounts due from such branches are included in “ Other as
sets," and net amounts due to such branches are included in
“ Other liabilities." Branches of insured banks outside the 50 States
are treated as separate entities but not included in the count of
banks. Data for such branches are not included in the figures for
the States in which the parent banks are located.
Prior to 1969, securities held by commercial banks were reported
net of valuation reserves; total loans were reported both gross (be
fore deductions for reserves) and net, the latter included in “ Total
assets." Beginning in 1969, loans and securities are shown on a
gross basis in “ Total assets" of commercial banks. All reserves on
loans and securities, including the reserves for bad debts set up
pursuant to Internal Revenue Service rulings, are included in “ Re
serves on loans and securities” on the liability side of the balance
sheet.

254

Table 105. ASSETS AND

LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
JUNE 30, 1969
BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK
(Amounts in thousands of dollars)

Asset, lia b ility , or capital account item

Members of
Federal Reserve System

Total
Total
Total

National

State1

Not
members
of F.R.
System

Total

Banks
of
deposit2

Nondeposit
trust
companies4

119.358,226

90.201.696

4.663.514

4.273,352

390.162

52.344.448
3,638,199
14,653,252

26.343.997
1,200,097
5,151,338

8.867.256
1,427,986
0

974.671
35,532
0

924,251
34,840
0

50,420
692
0

17,471,905
265,144
303,218
44,383,701

16,670,366
200,062
274,898
44,339,503

10,276,701
100,753
248,405
43,419,700

8,084,076
84,913
143,309
25,740,699

2,192,625
15,840
105,096
17,679,001

6,393,665
99,309
26,493
919,803

801,539
65,082
28,320
44,198

759,780
57,126
28,320
44,165

41,759
7,956
0
13

S e c u ritie s — t o t a l.......................................................................................... 126.910.762
U.S. Treasury securities............................................................................ 54,242,371
Securities of other U.S. Government agencies and corporations.
10,019,473
Obligations of States and subdivisions................................................... 60,261,432
2,387,486
Other securities...........................................................................................

125,686,352
53,836,946
9,777,013
59,859,454
2,212,939

95.780.476
39,391,221
5,975,464
48,624,872
1,788,919

71.441,350
29,489,337
4,864,778
35,651,412
1,435,823

24.339.126
9,901,884
1,110,686
12,973,460
353,096

29.905.876
14,445,725
3,801,549
11,234,582
424,020

1.224.410
405,425
242,460
401,978
174,547

969,540
361,461
220,506
314,938
72,595

254,910
43,964
21,954
87,040
101,952

Investment securities— to ta l..................................................................... 123,655,598

U.S. Treasury securities ................................................................................. 53,230,741
Securities of other U.S. Government agencies and corporations.......... 9,551,400
Obligations of States and subdivisions ........................................................ 58,505,735
Other securities ................................................................................................... 2,367,722

122,437,623

52,825,316
9,310,940
58,106,192
2,195,175

92,578,544

38,399,369
5,517,079
46,888,326
1,773,770

28,867,721
4,549,752
34,336,301

69,175,198

23,403,346

29,859,079

14,425,947
3,793,861
11,217,866
421,405

1,217,975

405,425
240,460
399,543
172,547

963,065

361,461
218,506
312,503
70,595

254,910

1,421,424

9,531,648
967,327
12,552,025
352,346

Trading account securities—to ta l............................................................

3,255,164

1,011,630
468,073
1,755,697
19,764

3,248,729

1,011,630
466,073
1,753,262
17,764

3,201,932

991,852
458,385
1,736,546
15,149

2,266,152

621,616
315,026
1,315,111
14,399

935,780

370,236
143,359
421,435
750

46,797

19,778
7,688
16,716
2,615

0
2,000
2,435
2,000

6,435

0
2,000
2,435
2,000

6,435

0
0
0
0

Federal funds sold and s e c u ritie s purchased und er agreem ents
to re s e ll— t o t a l......................................................................................
With domestic commercial banks............................................................
With brokers and dealers in securities...................................................
With others...................................................................................................

7.234.356
6,396,038
767,220
71,098

7,075.357
6,237,039
767,220
71,098

5.451,584
4,626,003
757,558
68,023

4.070,217
3,302,053
707,407
60,757

1.381.367
1,323,950
50,151
7,266

1.623.773
1,611,036
9,662
3,075

158.999
158,999
0
0

158,599
158,599
0
0

400
400
0
0

U.S. Treasury securities .................................................................................
Securities of other U.S. Government agencies and corporations..........
Obligations of States and subdivisions ........................................................
Other securities ...................................................................................................

43,964
21,954
87,040
101,952

CORPORATION

307,018.927

78.688.445
4,838,296
19,804,590

INSURANCE

426.377.153

87.555,701
6,266,282
19,804,590

Cash, reserves, balances w ith banks, and c o lle c tio n item s— to ta l
Currency and coin.......................................................................................
Reserve with F.R. banks (member ban ks).............................................
Demand balances with banks in the U.S. (except American branches
of foreign ban ks)....................................................................................
Other balances with banks in the U.S.....................................................
Balances with banks in foreign countries..............................................
Cash items in process of collection.........................................................

DEPOSIT

516.578.849

88.530.372
6,301,814
19,804,590

T o ta l a s s e ts ........................................................................................................ 521.242,363

FEDERAL

Noninsured banks

Insured banks

O ther loans and d isco u n ts— t o t a l.......................................................... 279,677.006
Real estate loans— to ta l............................................................................ 69,078,770

Secured by farm land ................................................................................... 4,088,1201
Secured by residential properties:
Secured by 1- to 4-family residential properties:
Insured by Federal Housing Adm inistration ............................. 7,462,753
Guaranteed by Veterans Administration ..................................... 2,743,349
Not insured or guaranteed by FHA or V A ................................. 30,376,548
Secured by multifam ily (5 or more) residential properties:
Insured by Federal Housing Administration ...........................
596,801
Not insured by F H A ......................................................................... 2,352,517
Secured by other properties ..................................................................... 21,458,682

Loans to domestic commercial and foreign banks.............................
Loans to other financial in stitutio ns.....................................................
Loans to brokers and dealers in securities.........................................
Other loans for purchasing or carrying securities..............................
Loans to farmers (excluding loans on real esta te )............................
Commercial and industrial loans (including open market paper). . .
Other loans to individuals—to ta l..........................................................

2,589,654
13,820,812
5,305,827
4,214,566
10,564,457
105,159,324
61,905,822

Passenger automobile installment loans ............................................. 22,495,867
Credit cards and related plans:
Retail (charge account) credit card plans ......................................... 1,704,982
Check credit and revolving credit plans .............................................
993,681
Other retail consumer installment loans ................................................ 5,897,710
Residential repair and modernization installment loans ............... . 3,625,376
Other installment loans for personal expenditures ............................
9,921,835
Single-payment loans for personal expenditures ................................ 17,266,371

All other loans (including overdrafts)..................................................

7,037,774

T o ta l lo ans and s e c u ritie s ............................................................... 413.822.124

277.729,074
68,728,760

230,060.085
52,811,069

167.434,419
39,930,182

62,625.666
12,880,887

47,668,989
15,917,691

1,947,932
350,010

1.899.086
337,247

48.846
12,763

7,360,009
2,673,129
30,286,274
594,641
2,350,653
21,402,602

6,509,330
2,324,352
22,625,756
564,946
1,915,977
16,768,983

5,289,824
1,788,085
17,596,617
269,462
1,182,647
12,191,055

1,219,506
536,267
5,029,139
295,484
733,330
4,577,928

850,679
348,777
7,660,518
29,695
434,676
4,633,619

102,744
70,220
90,274
2,160
1,864
56,080

102,540
70,201
80,742
2,160
1,855
53,752

204
19
9,532
0
9
2,328

4,061,452

2,543,555
13,640,251
5,179,540
4,170,027
10,546,149
104,290,921
61,669,768

22,436,965
1,704,982
993,681
5,871,057
3,619,121
9,852,935
17,191,027

2,101,725

2,385,965
12,841,398
4,996,105
3,472,880
6,351,892
93,202,746
47,556,675

16,447,995
1,591,538
899,064
4,306,916
2,861,767
7,311,479
14,137,916

1,612,492

1,451,574
8,604,674
2,224,417
2,204,850
5,268,300
66,527,096
36,641,461

13,122,037
1,316,655
643,112
3,474,879
2,126,894
5,530,121
10,427,763

489,233

934,391
4,236,724
2,771,688
1,268,030
1,083,592
26,675,650
10,915,214

3,325,958
274,883
255,952
832,037
734,873
1,781,358
3,710,153

1,959,727

157,590
798,853
183,635
697,147
4,194,257
11,088,175
14,113,093

5,988,970

113,444
94,617
1,564,141
757,354
2,541,456
3,053,111

46,099
180,561
126,287
44,539
18,308
868,403
236,054

58,902
0
0
26,653
6,255
68,900
75,344

46,098
180,327
119,841
33,301
18,080
859,601
232,616

57,660
0
0
26,418
6,095
67,976
74,467

671

1
234
6,446
11,238
228
8,802
3,438

0
0
235
160
924
877

71,975

5,696

79,198.638

3.331.341

3.027,185

304.156

1,368,762
80,633
8,900
129,448
548,059

32,990
5,184
3,642
77,217
238,469

21,799
4,804
3,617
77,217
214,479

11,191
380
25
0
23,990

4,581,865

1,859,490

518,748

410,490,783

331.292.145

242,945,986

88.346.159

7,563,940
344,481
509,227
3,100,687
7 : 014 030

6,195,178
263,848
500,327
2,971,239
6,465,971

4,753,183
207,799
389,582
1,687,715
4,690,214

1,441,995
56,049
110,745
1,283,524
1,775,757

Bank premises, furn iture and fixtures, and other assets representing
bank premises........................................................................................
Real estate owned other than bank prem ises....................................
Investments in subsidiaries not consolidated....................................
Customers' liability on acceptances outstanding...............................
Other assets..............................................................................................

7,596,930
349,665
512,869
3,177,904
7,252,499

T o ta l lia b ilitie s , reserves, and c a p ita l a c c o u n ts .................................

521.242.363

516,578,849

426.377,153

307,018,927

119,358,226

90.201.696

4.663.514

4,273,352

390,162

B usiness and personal deposits— t o t a l................................................ 357.750.263
Individuals, partnerships, and corporations— demand....................... 163,882,836
Individuals, partnerships, and corporations— tim e ............................. 181,108,271

355.582.619
162,900,158
180,273,337

285,148,793
133,315,194
140,312,116

210,876,125
97,034,530
107,846,175

74,272,668
36,280,664
32,465,941

20,015,840
268,361
19,677,020

2.167.644
982,678
834,934

2,002,894
853,932
798,931

164,750
128,746
36,003

12,409,124

11,521,483

5,995,420

17,467,555
187,331
14,811,055

70.433,826
29,584,964
39,961,221

5,526,063

887,641

350,032

350,031

Savings deposits ................................................................................................ 95,288,474
Deposits accumulated for payment of personal loans ............................ 1,154,439
Other deposits of individuals, partnerships, and corporations............. 84,665,358

Certified and officers’ checks, letters of credit, travelers’ checks, etc..

12,759,156

94,977,150
1,149,195
84,146,992

74,961,310
880,834
64,469,972

57,493,755
693,503
49,658,917

311,324
5,244
518,366

290,115
5,221
503,595

CO
CO

1,2 4 2

77,671

6,441,355

6,960,103

26,668

25,997

m
CO

>
*

21,209
23
14,771

ho
cn

CJ1

256

Table 105. ASSETS AND

LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
JUNE 30, 1969—CONTINUED
BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK
(Amounts in thousands of dollars)

Asset, liability, or capital account item

Members of
Federal Reserve System

Total
Total
Total

National

State1

Not
members
of F.R.
System

Banks
of
deposit2

Total

Nondeposit
Trust
companies4

31.267.225

24,033,299

7,233,926

8,383,787

224,783

222,100

2,683

5,636,323
361,839
16,929,297
16,723,553

4,880,206
312,191
12,938,803
13,136,025

3,539,562
194,812
9,924,410
10,374,515

1,340,844
117,379
3,014,343
2,761,510

756,117
49,648
3,990,494
3,587,528

22,841
121
131,324
70,497

20,158
121
131,324
70,497

2,683
0
0
0

D om estic in te rb a n k deposits— t o t a l.......................................................
Commercial banks in the United States— dem and..............................
Commercial banks in the United States—tim e .....................................
Mutual savings banks in the United States— dem and.........................
Mutual savings banks in the United States—tim e ...............................

23,647.036

23,415,718

22.599,992

13,594,533

9.005.459

815,726

231.318

230,641

677

21,812,205
527,728
1,218,545
88,558

21,763,085
525,653
1,089,803
37,177

21,051,303
464,465
1,048,544
35,680

12,857,178
312,135
399,807
25,413

8,194,125
152,330
648,737
10,287

711,782
61,188
41,259
1,497

49,120
2,075
128,742
51,381

48,443
2,075
128,742
51,381

677
0
0
0

Foreign gove rnm ent and bank deposits— t o t a l..................................
Foreign governments, central banks, etc.— dem and............................
Foreign governments, central banks, etc.—tim e ..................................
Banks in foreign countries—dem and......................................................
Banks in foreign countries— tim e ............................................................

8,004,027

7.702,356

7,522,075

4,176.106

3,345,969

180,281

301.671

300,210

1,461

877,934
4,585,500
2,258,981
281,612

810,839
4,502,679
2,135,052
253,786

775,371
4,452,988
2,071,936
221,780

444,207
2,491,272
1,141,599
99,028

331,164
1,961,716
930,337
122,752

35,468
49,691
63,116
32,006

67,095
82,821
123,929
27,826

66,729
81,821
123,834
27,826

366
1,000
95
0

Demand ....................................................................................................... 225,529,442 223,673,681 187,602,840 131,336,713
Tim e ............................................................................................................ 203,747,679 202,678,024 158,935,245 121,343,350

426.351,705 346.538,085

252.680,063

56,266,127
37,591 895

93.858.022

36,070,841
43,742,779

79.813,620

1,855,761
1,069,655

2.925.416

1,723,193
1,032,652

2.755.845

132,568
37,003

28.320,725

15.437,780

2.429.886

1,162.926

1,122,755

40,171

14,674
324,693
1,859
95,400
686,129

0
4,367
0
0
35,804

Total d e p o s its ................................................................................... 429,277,121

M iscellane ous lia b ilitie s — t o t a l...............................................................
Federal funds purchased (borrowed) and securities sold under
agreements to repurchase.....................................................................
Other liabilities for borrowed money......................................................
Mortgage indebtedness..............................................................................
Acceptances outstanding...........................................................................
Other lia b ilitie s ............................................................................................

47.351,317
11,167,377
3,643,169
520,804
3,251,474
28,768,493

T otal lia b ilitie s ................................................................................. 476,628,438
M in o rity in te re s t in consolidated s u b s id ia rie s ..................................

2,244

46,188,391

43.758.505

169,571

10,836,305
3,162,613
411,394
3,024,409
26,323,784

7,762,894
2,131,916
295,244
1,708,438
16,422,233

3,073,411
1,030,697
116,150
1,315,971
9,901,551

316,398
151,496
107,551
131,665
1,722,776

14,674
329,060
1,859
95,400
721,933

472,540,096 390.296,590

281,000,788

109,295,802

82.243,506

4,088,342

3,878,600

209,742

1,557

673

11,152,703
3,314,109
518,945
3,156,074
28,046,560

2,244

1,571

CORPORATION

39,651,012

5,659,164
361,960
17,060,621
16,794,050

INSURANCE

39,875,795

DEPOSIT

G overnm ent deposits— t o t a l.....................................................................
United States Government—dem and......................................................
United States Government—tim e ............................................................
States and subdivisions— demand...........................................................
States and subdivisions— tim e .................................................................

FEDERAL

Noninsured banks

Insured banks

5,609,896
5,271,077
113,801
225,018

5.596,156
5,261,227
112,601
222,328

4,755,392
4,524,672
64,150
166,570

3,381,986
3,222,470
46,180
113,336

1,373,406
1,302,202
17,970
53,234

840,764
736,555
48,451
55,758

13,740
9,850
1,200
2,690

12,944
9,301
1,200
2,443

796
549
0
247

Capital acco u n ts— t o t a l.............................................................................
Capital notes and debentures..................................................................
Equity capital—to ta l..................................................................................

39,001,785
2,020,312
36,981,473

38,440,353
1,970,829
36,469,524

31,323,600
1,761,739
29,561,861

22,634,596
1,142,068
21,492,528

8,689,004
619,671
8,069,333

7,116,753
209,090
6,907,663
7 , 131

561.432
49,483
511,949

381,808
49,333
332,475

179,624
150
179,474

Preferred stock ...................................................................................................
103,384
Common stock .................................................................................................... 10,477,156
Surplus ................................................................................................................ 17,072,397
Undivided profits .............................................................................................. 8,278,943
Reserve for contingencies and other capital reserves............................... 1,049,593

4,231
154,933
203,881
114,608
34,296

9.8%

20.9%

21.6%

12.9%

13.8
12.4

13.6
9.1

16.9
48.4

54.6
2.4
7.9

45.2
7.7
17.5 s

48.2
7.5
13.3 3

12.6
9.1
46.0

23.9 3

18.3 a

60.7

221

171

92,022
8,276,517
13,994,333
6,363,631
835,358

59,457
6,090,031
10,286,276
4,367,697
689,067

32,565
2,186,486
3,708,057
1,995,934
146,291

17.0%

16.9%

18.5%

17.0%

22.1%

12.0
12.3

10.3
12.2

10.9
12.4

8.8
11.6

20.2
13.0

55.0
3.6
7.5

55.1
3.6
7.4

55.2
3.8
7.3

55.9
3.8
7.4

53.6
3.9
7.3

4,081
121,963
77,044
29,233

150
54,779
81,918
37,564
5,063

2,045,706
2,874,183
1,800,704
179,939

99,153
10,322,223
16,868,516
8,164,335
1,015,297

100,154

10.3

10.2

10.1

10.0

10.4

10.6

Number of banks...............................................................................................

13,694

13,473

5,937

4,701

1,236

7,536

1 Excludes 1 noninsured trust company in Massachusetts not engaged in deposit banking.
2 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.
3 Data for branches of foreign banks referred to in the previous footnote have been excluded in computing this ratio for noninsured banks of deposit and in total columns.
4 Amounts shown as deposits are special accounts and uninvested trust funds, with the latter classified as demand deposits of individuals, partnerships, and corporations. Includes 1 trust company, a
member of the Federal Reserve System.
6
Only asset agd liability data are included for branches located in "other areas” of banks headquartered in one of the 50 States; because no capital is allocated to these branches, they are excluded
from the computation of ratios of capital accounts to assets.
Note: Further information on the reports of assets and liabilities of banks may be found on page 253.

257

OF BANKS

Of to ta l assets o th e r than cash and U.S. T re a su ry s e c u ritie s :
Total capital accounts5..................................................................................

LIABILITIES

Of to ta l assets:
Cash and balances with other banks..........................................................
U.S. Treasury securities and securities of other U.S. Government
agencies and corporations........................................................................
Other securities..............................................................................................
Loans and discounts (including Federal funds sold and securities pur
chased under agreements to re s e ll).......................................................
Other assets.....................................................................................................
Total capital accounts5..................................................................................

AND

PERCENTAGES

ASSETS

Reserves on loans and s e c u ritie s — t o t a l.............................................
Reserve for bad debt losses on loans.....................................................
Other reserves on loans............................................................................
Reserves on securities...............................................................................

258

Table 106. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1969
BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK
(Amounts in thousands of dollars)
Noninsured banks

Insured banks
Total
Total
Total

National

State1

Not
members
of F.R.
System

Nondeposit
trust
companies4

Banks
of
deposit2

Total

95,994,012

4,965,029

4,563,522

401,507

24.312,650

10,246,526

933,072

5,690,944
21,452,826

1,385,876
5,228,052

1,656,029

36,151

884,395
35,722

48,677

7,383,124
21,452,826

54,775,953
4,305,068
16,224,774

20,157,862
273,943
381,128
40,619,318

19,389,950
230,150
320,921
40,594,309

11,796,479
140,547
287,244
39,720,563

9,402,859
119,439
167,261
24,556,552

2,393,620
21,108
119,983
15,164,011

7,593,471
89,603
33,677
873,746

767,912
43,793
60,207
25,009

723,961
39,505
60,207
25,000

43,951
4,288

S e c u ritie s — t o t a l.......................................................................................... 126.556,177
U.S. Treasury securities............................................................................
54,957,364
Securities of other U.S. Government agencies and corporations. . ..
9,961,879
Obligations of States and subdivisions................................................... 59,367,334
Other securities...........................................................................................
2,269,600

125.384,941

94.657.934
39,846,069
5,847,255
47,253,889
1,710,721

70,130.165

24.527.769

30.727.007

1.171.236

54,529,716
9,771,666
58,943,820
2,139,739

29,588,921
4,640,875
34,536,260
1,364,109

10,257,148
“ 1,206,380
12,717,629
346,612

14,683,647
3,924,411
11,689,931
429,018

427,648
190.213
423,514
129.861

938.105
382,406
175.919
317,230
62.550

233.131
45.242
14.294
106.284
67.311

122,203,185

53,262,588 38,602,065
9,239,140 5,324,411
57,572,607 45,887,755
2,128,850 1,699,869

91,514,100

68,097,886

28,818,837
4,282,344
33,642,283
1,354,422

23,416,214

30,689,085

14,660,523
3,914,729
11,684,852
428,981

1,166,629

427,349
189.213
421,206
128.861

933,498

233.131

1,267,427
533,526
1,373,521
11,889

3,181,756

1,267,128
532,526
1,371,213
10,889

3,143,834

2,032,279

770,084
358,531
893,977
9,687

1,111,555

473,920
164,313
472,157
1,165

23,124
9,682
5,079
37

37,922

4,607

299
2,308

4,607

9.947,079

9,712,405

7,374,768

8,389,581
929,617
393,207

6,076,872
913,059
384,837

5,809,058
4,676,492
823,805
308,761

1,565,710

8,624,255
929,617
393,207

1,400,380
89,254
76,076

Investment securities— to ta l............

..................................................... 123,369,814

U.S. Treasury securities ................................................................................. 53,689,937
9,^28,353
Securities of other U.S. Government agencies and corporations .........
Obligations of States and subdivisions ........................................................ 57,993,813
Other securities ................................................................................................... 2,257,711

Trading account securities— to ta l............................................................

U.S. Treasury securities .................................................................................
Securities of other U.S. Government agencies and corporations...........
Obligations of States and subdivisions .........................................................
Other securities ...................................................................................................

3,186,363

1 , 244,004
522,844

1,366,134
10,852

9,783,228
1,042,067
12,245,472
345,447

382,107
174.919
314,922
61.550

429

45.242
14.294
106.284
67.311

299
2,308

1,000

0
0
0
0
0

2,337,637

234.674

232.675

2,312,709
16,558
8,370

234.674

232.675

1.999
1.999

1 ,0 0 0

0
0

1,000

0
0

CORPORATION

119,218,601

79,088,603

90,268.201

INSURANCE

315,502,098

89,335,129
7,346/973
21,452,826

535,679,740

Cash, reserves, balances w ith banks, and c o lle c tio n item s— to ta l
Currency and coin.......................................................................................
Reserve with F.R. banks (member ban ks)............................................
Demand balances w ith banks in the U.S. (except American branches
of foreign ban ks)....................................................................................
Other balances with banks in the U.S....................................................
Balances with banks in foreign countries..............................................
Cash items in process of collection.........................................................

DEPOSIT

530,714,711 434,720,699

T o ta l a s s e ts .......................................................................................................

FEDERAL

Asset, liability, or capital account item

Members of
Federal Reserve System

O ther loans and d is co u n ts— t o t a l.......................................................... 288,895.911
Real estate loans—to ta l............................................................................
70,705,002

Secured by farm land ........................................................................................ 4,018,711
Secured by residential properties:
Secured by 1- to 4-fam ily residential properties:
Insured by Federal Housing Administration .................................. 7,895,468
Guaranteed by Veterans Administration .......................................... 2,663,251
Not insured or guaranteed by FHA or V A ..................................... 31,297,144
Secured by multi fam ily (5 or more) residential properties:
Insured by Federal Housing Administration ..................................
564,190
Not insured by F H A .............................................................................. 2,652,699
Secured by other properties ............................................................................ 22,113,539

63.994,023
12,661,487

50,353,783
16,841,611

2,144,309
379,049

2,097,209
362,110

47,100
16,939

7,262,023
2,596,261
31,210,921
562,501
2,647,857
22,053,459

6,388,479
2,245,948
23,133,532
524,737
2,167,945
17,016,881

5,318,611
1,807,161
18,071,872
261,286
1,337,081
12,436,126

1,069,868
438,787
5,061,660
263,451
830,864
4,580,755

873,544
350,313
8,077,389
37,764
479,912
5,036,578

133,445
66,990
86,223
1,689
4,842
60,080

133,366
65,049
77,280
1,689
4,842
54,806

79
1,941
8,943
0
0
5,274

2,425,147
14,938,963
5,646,962
3,994,818
10,323,657
108,393,788
63,355,683

22,706,108
2,639,497
1,082,791
6,269,924
3,654,863
9,936,340
17,066,160

2,257,583
14,040,627
5,408,314
3,285,521
6,187,398
96,470,162
48,480,073

1,590,718

1,396,205
9,211,876
2,528,286
2,240,661
5,143,046
68,580,743
37,669,202

16,459,165
2,429,559
954,924
4,530,075
2,869,374
7,361,204
13,875,772

13,342,228
1,959,465
668,758
3,678,726
2,143,874
5,646,761
10,229,390

861,378
4,828,751
2,880,028
1,044,860
1,044,352
27,889,419
10,810,871

3,116,937
470,094
286,166
851,349
725,500
1,714,443
3,646,382

1,986,111

167,564
898,336
238,648
709,297
4,136,259
11,923,626
14,875,610

6,246,943
209,938
127,867
1,739,849
785,489
2,575,136
3,190,388

25,780

63,478
206,325
93,120
39,039
14,937
970,232
287,942

100,046
0
0
25,630
6,208
77,637
78,421

25,078

62,828
205,575
88,220
30,751
14,717
962,621
284,780

98,817
0
0
25,398
6,064
76,822
77,679

702

650
750
4,900
8,288
220
7,611
3,162

1,229
0
0
232
144
815
742

7,346,631

90,187

85,607

4,580

425,399,167

421,848,948

338,430,521

248,343,019

90.087,502

83,418,427

3,550,219

3,267,989

282,230

Bank premises, furn iture and fixtures, and other assets representing
bank premises........................................................................................
Real estate owned other than bank premises......................................
Investments in subsidiaries not consolidated......................................
Customers' lia b ility on acceptances outstanding.................................
Other assets................................................................................................

8,110,427
369,770
670,347
3,389,859
7,471,969

8,070,059
360,820
651,095
3,308,881
7,139,779

6,579,946
276,339
644,134
3,167,311
6,533,845

5,067,455
221,776
511,648
1,837,940
4,744,307

1,512,491
54,563
132,486
1,329,371
1,789,538

1,490,113
84,481
6,961
141,570
605,934

40,368
8,950
19,252
80,978
332,190

23,356
4,756
3,759
80,978
298,289

17,012
4,194
15,493
0
33,901

T o ta l lia b ilitie s , reserves, and c a p ita l a c c o u n ts .................................. 535,679,740

530,714,711

434,720,699

315,502,098

119,218,601

95,994,012

4,965,029

4,563,522

401,507

B usiness and personal dep osits— t o t a l................................................ 368.193,312
Individuals, partnerships, and corporations— demand....................... 179,219,467
Individuals, partnerships, and corporations—tim e ............................. 177,028,567

365.934,821
178,185,683
176,240,900

290,925.554
145,432,955
135,001,529

215.377,163
105,918,310
104,181,501

2,258,491
1,033,784
787,667

2,106,151
909,482
759,629

152,340
124,302
28,038

10,491,070

16,926,701
187,801
13,705,526

75,009,267
32,752,728
41,239,371

11,508,238

56,350,958
688,085
47,142,458

75,548,391
39,514,645
30,820,028

5,277,352

5,213,718

1,017,168

437,040

Certified and officers’ checks, letters of credit, travelers’ checks, etc..

73,277,659
875,886
60,847,984

1,972,877

562,832

20,518,643
253,419
20,467,309

302,001
6,713
478,953

283,614
6,692
469,323

18,387
21
9,630

259

11,945,278

93,796,302
1,129,305
81,315,293

4,810,922

OF BANKS

7,436,818

T o ta l loans and s e c u ritie s ...........................................................

Savings deposits ................................................................................................ 94,098,303
Deposits accumulated for payment of personal loans ............................. 1,136,018
Other deposits of individuals, partnerships, and corps.......................... 81,794,246

6,783,799

$16,102

LIABILITIES

A ll other loans (including o verdrafts)....................................................

172.403,796
40,822,855

2,005,820

AND

Passenger automobile installment loans .................................................... 22,806,154
Credit cards and related plans:
Retail {charge account) credit card plans .............................................. 2,639,497
Check credit and revolving credit plans .................................................. 1,082,791
Other retail consumer installment loans ..................................................... 6,295,554
Residential repair and modernization installment loans ...................... 3,661,071
Other installment loans for personal expenditures ................................. 10,013,977
Single-payment loans for personal expenditures ..................................... 17,144,581

236.397,819
53,484,342

3,992,931

ASSETS

Loans to domestic commercial and foreign banks...............................
2,488,625
Loans to other financial in stitu tio n s.......................................................
15,145,288
Loans to brokers and dealers in securities...........................................
5,740,082
Other loans for purchasing or carrying securities................................
4,033,857
Loans to farmers (excluding loans on real estate )..............................
10,338,594
Commercial and industrial loans (including open market paper)
109,364,020
Other loans to individuals—to ta l............................................................ 63,643,625

286,751,602
70,325,953

260

Table 106. ASSETS AND

LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1969-CONTINUED
BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK
(Amounts in thousands of dollars)

Asset, liability, or capital account item

Noninsured banks

Members of
Federal Reserve System

Total

National

State1

Not
members
of F.R.
System

Total
Total

Total

Banks
of
deposit2

Nondeposit
trust
companies4

FEDERAL

Insured banks

36,333.361
5,076,670
223,577
17,704,864
13,328,250

36.092.200
5,050,538
222,560
17,559,438
13,259,664

27,627,714
4,121,021
194,587
13,294,402
10,017,704

21,744,565
3,056,513
118,758
10,445,106
8,124,188

5.883,149
1,064,508
75,829
2,849,296
1,893,516

8,464.486
929,517
27,973
4,265,036
3,241,960

241.161
26,132
1,017
145,426
68,586

240.522
25,494
1,017
145,425
68,586

639
638
0
1
0

DEPOSIT

Dom estic in te rb a n k deposits— t o t a l.......................................................
Commercial banks in the United States—dem and..............................
Commercial banks in the United States— tim e ...........................
Mutual savings banks in the United States—dem and.........................
Mutual savings banks in the United States—tim e .............................

25.055,649
23,453,874
416,026
1,128,139
57,610

24.858.037
23,394,428
415,216
1,017,123
31,270

23,827,985
22,472,139
348,571
977,075
30,200

15,124,690
14,539,116
191,884
377,846
15,844

8,703.295
7,933,023
156,687
599,229
14,356

1,030,052
922,289
66,645
40,048
1,070

197,612
59,446
810
111,016
26,340

197,142
58,976
810
111,016
26,340

470
470
0
0
0

Foreign gove rnm ent and bank deposits— t o t a l..................................
Foreign governments, central banks, etc.—dem and............................
Foreign governments, central banks, etc.— tim e ..................................
Banks in foreign countries—dem and......................................................
Banks in foreign countries—tim e ............................................................

10,407,036
992,577
6,465,942
2,624,537
323,980

10,104.607
940,239
6,378,964
2,475,098
310,306

9.907,129
910,612
6,323,127
2,402,263
271,127

5,597,373
457,876
3,552,169
1,393,440
193,888

4,309.756
452,736
2,770,958
1,008,823
77,239

197,478
29,627
55,837
72,835
39,179

302,429
52,338
86,978
149,439
13,674

300,907
51,991
85,978
149,264
13,674

1,522
347
1,000
175
0

INSURANCE

To ta l d e p o s its ................................................................................... 439,989,358

436,989.665

352.288,382

257,843.791

58,635,978
35,808,613

94.444,591

40,029,248
44,672,035

84,701,283

2,014,621
985,072

2,999,693

1,888,688
956,034

2,844,722

125,933
29,038

49,326.984

47,966,725

45.118,418

30.618,355

14,500,063

2,848,307

1,360,259

1,313,054

47,205

14,730,800
3,710,922
603,447
3,485,840
26,795,975

14,684,700
3,367,342
601,562
3,387,309
25,925,812

14,275,695
3,121,971
478,077
3,245,328
23,997,347

9,997,514
2,283,717
350,451
1,880,445
16,106,228

4,278,181
838,254
127,626
1,364,883
7,891,119

409,005
245,371
123,485
141,981
1,928,465

46,100
343,580
1,885
98,531
870,163

46,100
330,054
1,885
98,531
836,484

0
13,526
0
0
33,679

T ota l l i a b i l i t i e s ............................................................................... 489,316,342

484,956,390

397.406,800

288,462,146

108,944.654

87,549,590

4,359,952

4,157,776

202,176

3.295

835

827

2,460

588

Demand,....................................................................................................... 242,1^5,406 240,130,785 200,101,537 141,465,559
T im e ............................................................................................................. 197,843,952 196,858,880 152,186,845 116,378,232

M isce lla n e o u s lia b ilitie s — t o ta l...............................................................
Federal funds purchased (borrowed) and securities sold under
agreements to repurchase.....................................................................
Other liabilities for borrowed m oney......................................................
Mortgage indebtedness..............................................................................
Acceptances outstanding...........................................................................
Other lia b ilitie s ............................................................................................

M in o rity in te re s t in conso lid ated s u b s id ia rie s ..................................

3,883

154,971

CORPORATION

G overnm ent deposits— t o t a l.....................................................................
United States Government— dem and..................................................
United States Government—tim e ........................................................
States and subdivisions— demand.......................................................
States and subdivisions— tim e .................................................................

Reserves on loans and s e c u ritie s — to ta l
Reserve for bad debt losses on lo ans.........
Other reserves on loans................................
Reserves on securities...................................
C apital a ccou nts— t o t a l............................ ....................................
Capital notes and debentures..............................................
Equity capital—to ta l........................................................................

6.194,152
5,896,865
109,904
187,383

6,178.797
5,885,873
108,824
184,100

5,259.153
5,073,782
55,030
130,341

3.784,928
3,660,232
37,878
86,818

1,474,225
1,413,550
17,152
43,523

919,644
812,091
53,794
53,759

15,355
10,992
1,080
3,283

14,430
10,325
1,080
3,025

925
667
0
258

40.165.363
2,049,141
38,116,222

39,576.229
1,998,316
37,577,913

32,053.911
1,773,399
30,280,512

23.254,197
1,119,738
22,134,459

8,799,714
653,661
8,146,053

7,522.318
224,917
7,297,401

589,134
50,825
538,309

391,316
50,825
340,491

197,818
0
197,818

32,587
2,219,773
3,896,380
1,853,475
143,838

8,376
2,143,792
3,076,080
1,866,714
202,439

4,257
159,925
160,211
157,636
56,280

4,257
105,410
124,388
71,103
35,333

0
54,515
35,823
86,533
20,947

16.9%

16.8%

18.2%

17.4%

20.4%

10.7%

18.8%

19.4%

12.1%

11.8
11.8
55.8
3.7
7.5

11.8
11.8
55.9
3.7
7.5

10.1
11.7
56.1
4.0
7.4

10.5
11.7
56.5
3.9
7.4

9.1
11.5
55.0
4.0
7.4

19.4
12.7
54.9
2.4
7.8

12.4
11.2
47.9
9.7
17.33

12.2
8.4
51.1
9.0
12.93

14.8
43.2
12.2
17.6
49.3

10.3

10.2

10.1

10.0

10.3

10.6

22.73

16.73

64.3

13,681

13,473

5,870

4,669

1,201

7,603

208

159

1 See table 105, note 1.
parent "banks8 aSS8t ^

lia b llity figures for 15 brafiches 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

l >4.5 see table 105, notes.
Note: Further information on the reports of assets and liabilities of banks may be found on page 253.

261

OF BANKS

Number of banks........................................................................

62,453
6,165,757
10,488,372
4,706,598
711,279

LIABILITIES

O f to ta l assets o th e r than cash and U.S. T re a su ry s e c u ritie s :
Total capital accounts5..................................................................

95,040
8,385,530
14,384,752
6,560,073
855,117

AND

PERCENTAGES
Of to ta l assets:
Cash and balances with other banks..........................................................
U.S. Treasury securities and securities of other U.S. Government
agencies and corporations....................................................
Other securities.................................................. ........................
Loans and discounts (including Federal funds s o id )........
Other assets................................................................................
Total capital accounts5......................................

103,416
10,529,322
17,460,832
8,426,787
1,057,556

ASSETS

Pre ferred stock ...................................................................................................
107,673
Common stock ..................................................................................................... 10,689,247
Surplus ................................................................................................................ 17,621,043
Undivided profits .............................................................................................. 8,584,423
Reserve for contingencies and other capital reserves............................... 1,113,836

262

Table 107. ASSETS AND LIABILITIES OF ALL MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
JUNE 30, 1969, AND DECEMBER 31, 1969
BANKS GROUPED BY INSURANCE STATUS
(Amounts in thousands of dollars)
December 31,1969

June 30,1969
Total

Insured

Noninsured

T ota l a s s e ts .................................................................................................................................................

73,300,003

63,744,591

9,555,412

74,349,679

64,633,716

9,715,963

Cash, balances w ith banks, and c o lle c tio n item s— t o t a l.........................................................
Currency and coin................................................................................................................................
Demand balances with banks in the United States.......................................................................
Other balances with banks in the United States............................................................................
Cash items in process of collection...................................................................................................

832,152
156,199
506,976
77,993
90,984

713,004
128,286
432,727
73,380
78,611

119,148
27,913
74,249
4,613
12,373

890,947
209,719
557,371
55,535
68,322

780,079
179,378
499,506
42,964
58,231

110,868
30,341
57,865
12,571
10,091

S e cu ritie s—t o t a l....................................................................................................................................

14,698,712

12,155,397

2,543,315

14,226,488

11,843,577

2,382,911

O blig a tio n s o f th e U.S. G overnm ent, ne t— t o t a l.........................................................................
Valuation reserves...............................................................................................................................
O blig a tio n s of th e U.S. G overnm ent, gross— t o t a l.....................................................................
Direct:

3,610,378
12,774
3,623,152

2,635,085
12,774
2,647,859

975,293
0
975,293

3,230,410
13,004
3,243,414

2,445,609
13,004
2,458,613

784,801
0
784,801

266,330
3,5^2
110,009
1,033,538
25,790
163,311
672,697
66,368
916,858

176,242
. 500
78,237
728,138
23,963
125,056
479,672
32,155
786,272

90,088
3,042
31,772
305,400
1,827
38,255
193,025
34,213
130,586

145,856
4,222
919,440
15,797
115,493
573,971
26,555
885,770

122,070
2,043
158,515
654,983
13,997
91,152
437,306
11,718
762,119

23,786
2,179
65,585
264,457
1,800
24,341
136,665
14,837
123,651

Treasury bills ...................................................................................................................................................
Treasury certificates of indebtedness..........................................................................................................
Treasury notes maturing in 1 year or less ...............................................................................................
Treasury notes maturing after 1 year ........................................................................................................
United States nonmarketable bonds ............................................................................................................
Other bonds maturing in 1 year or less .....................................................................................................
Other bonds maturing in 1 to 5 years ........................................................................................................
Other bonds maturing in 5 to 10 years ......................................................................................................
Other bonds maturing after 10 years .........................................................................................................

224,100

Guaranteed obligations.......................................................................................................................

364,709

217,624

147,085

332,210

204,710

O b ligations o f States and su bd ivisions, n e t..................................................................................
Valuation reserves...............................................................................................................................
O bligations o f States and subd ivisions, g ro s s ..............................................................................

189,893
5,725
195,618

182,450
5,725
188,175

7,443
0
7,443

192,496
5,561
198,057

185,388
5,561
190,949

7,108
0
7,108

O ther bonds, notes, and deb entu res, ne t— t o t a l.........................................................................
Valuation reserves...............................................................................................................................
O ther bonds, notes, and deb entures, gross— t o t a l....................................................................
Railroads................................................................................................................................................
U tilitie s ...................................................................................................................................................
Ind u stria ls.............................................................................................................................................
Securities of Federal agencies and corporations not guaranteed by U.S...................................
All o th e r.................................................................................................................................................

8,795,085
22,834
8,817,919
592,386
4,231,003
1,048,402
1,668,489
1,277,639

7,575,065
22,757
7,597,822
513,152
3,629,935
982,347
1,311,237
1,161,151

1,220,020
77
1,220,097
79,234
601,068
66,055
357,252
116,488

8,628,655
26,842
8,655,497
583,508
4,265,854
1,019,117
1,475,696
1,311,322

7,396,659
26,765
7,423,424
512,297
3,624,115
953,590
1,149,455
1,183,967

1,231,996
77
1,232,073
71,211
641,739
65,527
326,241
127,355

C orporate stocks, net— t o t a l..............................................................................................................
Valuation reserves...............................................................................................................................
Corporate stocks, gross— t o t a l..........................................................................................................

2,103,356
38,204
2,141,560
474,659
1,666,901

1,762,797
37,862
1,800,659
248,149
1,552,510

340,559
342
340,901
226,510
114,391

2,174,927
38,015
2,212,942
485,730
1,727,212

1,815,921
37,918
1,853,839
251,903
1,601,936

359,006
97
359,103
233,827
125,276

127,500

CORPORATION

Noninsured

INSURANCE

Insured

DEPOSIT

Total

FEDERAL

Asset, lia b ility , or surplus account item

Loans and discounts, n e t— t o t a l............................................................
Valuation reserves.....................................................................................
Loans and d iscounts, gross— t o t a l........................................................
Real estate loans— to ta l............................................................................

56,495,369
132,048
56,627,417
54,843,569

49,707,935
121,788
49,829,723
48,321,900

6,787,434
10,260
6,797,694
6,521,669

57,948,031
130,189
58,078,220
56,137,885

50,828,568
120,928
50,949,496
49,329,087

7,119,463
9,261
7,128,724
6,808,798

Commercial and industrial loans (including open market paper)
Loans to individuals for personal expenditures...................................
All other loans (including ove rd ra fts)....................................................

284,044
1,168,666
331,138

271,705
931,561
304,557

12,339
237,105
26,581

217,850
1,243,914
478,571

206,348
987,198
426,863

11,502
256,716
51,708

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

110,578
14,674,504
11,032,381
16,555,195
5,949,242

6,175
1,094,726
1,118,607
3,343,026
959,135

113,629
15,862,120
12,165,969
20,654,641
7,341,526

106,943
14,742,577
11,030,456
17,193,309
6,255,802

6,686
1,119,543
1,135,513
3,461,332
1,085,724

9,330,749

72,174,519

62,672,145

9,502,374

389,840
94,269
38,273
645,873

42,706
17,708
4,747
40,354

444,671
114,939
51,310
673,293

400,375
96,684
47,607
636,826

44,296
18,255
3,703
36,467

To ta l lia b ilitie s and surp lu s a c c o u n ts .....................................................

73,300,003

63,744,591

9,555,412

74,349,679

64,633,716

9,715,963

Deposits— t o t a l............................................................................................
Demand deposits of individuals, partnerships, and corporations___
Time deposits of individuals, partnerships, and corporations...........
Other deposits (official checks, e tc .)......................................................
States and subdivisions............................................................................
United States Government.......................................................................
Inte rb a n k....................................................................................................

66,756,656
570,635
66,125,568
22,762
28,382
6,665
2,644

58,288,940
526,471
57,703,374
22,679
27,766
6,006
2,644

8,467,716
44,164
8,422,194
83
616
659
0

67,540,464
527,043
66,951,492
18,405
33,293
7,921
2,310

58,867,848
503,982
58,303,307
18,378
32,660
7,213
2,308

8,672,616
23,061
8,648,185
27
633
708
2

Total demand deposits ....................................................................................
Total savings and time deposits ...................................................................

602,019
66,154,637

557,106
57,731,834

44,913
8,422,803

557,635
66,982,829

533,836
58,334,012

23,799
8,648,817

1,137,177

848,640

288,537

1,287,835

1,068,152

219,683

Tota l lia b ilitie s (e x c lu d in g su rp lu s a c c o u n ts )..........................

67,893,833

59,137,580

8,756,253

68,828,299

59,936,000

8,892,299

S u rplus accou nts— t o t a l............................................................................
S urplus........................................................................................................
Undivided profits.......................................................................................
Other segregations of surplus.................................................................

5,406,170
3,771,060
1,145,666
489,444

4,607,011
3,321,762
882,797
402,452

799,159
449,298
262,869
86,992

5,521,380
3,777,347
1,244,572
499,461

4,697,716
3,317,372
970,376
409,968

823,664
459,975
274,196
89,493

PERCENTAGES
Of to ta l assets:
Cash and balances with other banks.........................................................
U.S. Government obligations, direct and guaranteed..............................
Other securities..............................................................................................
Loans and discounts......................................................................................
Other assets....................................................................................................
Total surplus accounts..................................................................................

15.1
77.1
1.7
7.4

l:i*

1.1%
4.1
14.9
78.0
1.8
7.2

1.2%
10.2
16.4
71.0
1.1
8.4

1.2%
4.3
14.8
77.9
1.7
7.4

1.2%
3.8
14.5
78.6
1.8
7.3

16.4
73.3
1.1
8.5

7.9

7.6

9.4

7.9

7.7

9.3

Number of banks...............................................................................................

500

333

167

497

331

166

263

Of to ta l assets o th e r than cash and U.S. G overnment obliga tions:
Total surplus accounts..................................................................................

OF BANKS

M iscellane ous lia b ilitie s ..........................................................................

LIABILITIES

61,863,332

432,546
111,977
43,020
686,227

AND

71,194,081

Bank premises...............................................................................................
Furniture and fixtu re s...................................................................................
Real estate owned other than bank premises..........................................
Miscellaneous assets.....................................................................................

ASSETS

T o ta l loans and s e c u r itie s ..........................................................

116,753
15,769,230
12,150,988
19,898,221
6,908,377

264

Table 108. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER CALL DATES, 1961, 1965-1969
(Amounts in thousands of dollars)
Asset, liability, or capital account item

Dec. 30, 1961

Dec. 31, 1966

Dec. 31, 1965

Dec. 31, 1968

Dec. 30, 1967

Dec. 31, 1969 1

379,405,384

505.453.732 2

530,714,711

56,181,467
3 , 6 9 2 ,5 9 3
16 ,9 17 ,83 4
1 3, 816, 911
80,713
249,421
2 1 ,4 2 3 ,9 9 5

60,436,719
4,865,803
17 ,9 9 2 ,3 9 5
1 4 , 3 5 4 ,1 8 6
484 ,8 17
255 ,8 65
2 2 ,4 8 3 ,6 5 3

68,651,850
5, 4 5 7 ,2 8 1
19 ,0 6 8 ,8 2 0
1 5 ,1 36 ,61 1
2 5 7, 06 6
2 5 0, 87 2
2 8 ,4 8 1 , 2 0 0

77,532,592
5,953,155
2 0 ,2 7 5 ,0 5 1
1 6 ,5 2 0 ,0 6 0
544 , 6 5 8
28 0, 24 9
33,959,419

83,269.951
7,216,003
2 1 ,2 3 0 , 2 4 6
1 8 ,0 8 9 ,8 8 6
334, 91 7
264 , 4 3 3
36,134,466

89,335,129
7 ,3 4 6 , 9 7 3
2 1 , 4 5 2 ,8 2 6
1 9 ,3 8 9 ,9 5 0
2 30 ,1 50
320,921
4 0 , 5 9 4 ,3 0 9

FEDERAL

I n v e s t m e n t s e c u r i t i e s — t o t a l ..................................................................................................................
U.S. Trea sury sec u rit ie s............................................................................................................................
Securities of other U.S. Gove rnm ent agencies and co rpo rat ion s.........................................
Obligations of States and subd ivis ions ..............................................................................................
Other secu ritie s..............................................................................................................................................

89,661,642
6 6 ,0 9 0 ,8 6 9
2, 1 1 2 ,2 9 2
2 0 ,1 0 3 ,5 3 8
1,3 5 4 ,9 4 3

103,650,708
5 9 ,2 0 9 , 8 3 2
4,513,114
3 8 ,4 8 0 ,3 4 9
1 ,4 4 7 ,4 1 3

104,285,823
5 5 ,9 0 3 ,9 9 6
5,959,194
40,831,664
1 ,5 9 0 ,9 6 9

123,263,625
62,229,348
8,901,164
49,820,973
2,312,140

135,242,315
6 4 ,1 7 1 , 3 2 4
10 ,0 8 1 ,6 4 1
5 8 ,3 9 1 , 7 3 8
2 ,5 9 7 , 6 1 2

122.203,185
5 3 ,2 6 2 , 5 8 8
9 ,2 3 9 , 1 4 0
5 7 ,5 7 2 ,0 0 7
2,128,850

DEPOSIT

2,064,215

2,460,941

3,924,357

6,526,458

9,712,405

127,413,856 2
3 0 ,3 3 0 ,4 3 2

1,731,465

203,061,2012
49,393,933
2 ,88 8, 01 2

220,331,6902
5 4 , 0 9 9 ,5 9 0

237,518,086
5 8 ,6 7 8 , 0 1 4

5,966,563
2,613,165
12,570,2 73

7,5 92,40 5
2,6 37 ,4 3 9
21,929,5 84

7,441,201
2,5 5 6 ,52 7
2 4,659,8 45

7 ,603,10 0
2 ,6 13 ,0 6 0
2 7,1 5 7 ,6 32

7 ,8 09,56 7
2 ,6 26 ,56 0
3 0 ,712,6 79

7,2 62 ,02 3
2,5 96 ,261
31,210,9 21

20,4 4 8,7 5 9

562,501
2 ,6 47 ,8 5 7
22, 053, 459

407,283,2692

455,445,184

3,181,756

T r a d i n g a c c o u n t s e c u r i t i e s 3...................................................................................................................
F e d e r a l f u n d s s o l d 4.........................................................................................................................................
O t h e r lo a n s a nd d i s c o u n t s — t o t a l ..........................................................................................................
Real estate loans— t o t a l...............................................................................................................................

Loans to domestic commercial and foreign b a n k s .........................................................................
Loans to other financial institutions......................................................................................................
Loans to brokers and dealers in secu riti es ......................................................................................
Other loSns for purchasing or carrying secu riti es..........................................................................
Loans to farme rs (excluding loans on real e s t a t e ) ........................................................................
Commercial and industrial loans (including open m ar k et p a p e r ) ........................................
Other loans to individuals— t o t a l .............................................................................................................

Passenger automobile installment loans .........................................................................................
Credit cards and related plans:
Retail (charge account) credit card p la n s .................................................................................
Check credit and revolving credit p l a n s .....................................................................................
Other retail consumer installment l o a n s .......................................................................................
Residential repair and modernization installment lo a n s .......................................................
Other installment loans for personal expenditures ...................................................................
Single-payment loans for personal expenditures ........................................................................

All other loans (including o v e r d r a ft s )..................................................................................................

7,448,966
1, 03 2 ,8 6 4
7, 3 1 0 ,1 1 2
4 ,0 3 0 ,0 0 0
2 , 1 0 7 ,3 6 0
6, 2 2 4,0 41
4 5 , 1 5 6 ,6 0 7
27 ,8 1 9 ,6 6 9

9 ,0 62,043

3 ,1 12 ,4 2 2

3 ,4 1 9 ,3 3 6

286.751.602
7 0 ,3 2 5 , 9 5 3

3,9 92,93 1

1 6,329,595

17,884,8 86

2,132,957
1 3 , 1 8 6 ,4 5 3
5 , 6 4 3 ,1 1 2
3,149,552
8 ,5 4 9 , 3 9 9
8 0 , 4 0 8 ,4 8 2
47,992,068

1 ,8 4 7 ,6 8 3
1 2 , 4 4 7 ,0 7 7
6,017,418
3,724,055
9,260,220
88,257,588
5 1 ,6 2 8 , 0 8 3

2,145,604
1 3 , 6 7 6 ,9 5 3
6,409,302
4,068,900
9,712,410
9 8 ,1 6 1 ,3 8 1
5 8 ,4 1 4 , 7 9 9

2 ,4 2 5 , 1 4 7
1 4 , 9 3 8 ,9 6 3
5,646,962
3,994,818
1 0 , 3 2 3 ,6 5 7
1 0 8 , 3 9 3 ,7 8 8
63,355,683

1 ,3 12,02 0
798,115
5 ,5 20 ,27 4
3 ,4 9 4 ,81 3
9 ,3 9 0 ,55 9
16,698,575

2 ,6 3 9 ,4 9 7
1 ,0 82,791
6 ,2 69 ,9 2 4
3 ,6 54 ,8 6 3
9 ,9 36 ,3 4 0
17,066,1 60

6 ,7 4 9 , 3 0 1

7 ,3 4 6 , 6 3 1

17,139,2 14

18,29 0,164

18,890,458

8,776,345

4,1 76 ,9 5 0
3 ,126,80 4
7 ,3 88,64 0
1 3,665,8 53

4 ,6 92,533
3 ,2 16 ,16 2
8 ,0 91,439
13,701,7 70

3,4 0 2 ,7 7 1

5 ,1 8 7 ,7 9 1

5 , 1 7 0 ,0 7 7

5,657,948

(5)

3 ,7 3 5 ,18 0

1 4,346,4 93

(5)

4 480,462

264.671.395 2
65,332,745

2 .0 9 5 . 0 1 2
1 3 , 1 8 6 ,0 3 8
5 ,0 8 7 , 6 9 4
3,175,076
8 .2 0 3 . 0 1 3
71,235,183
4 5 ,4 9 7 ,4 6 1

828,313
521, 909
4 ,7 81 ,23 2
3 ,3 51 ,5 5 4
8 ,3 61 ,18 0
1 4,893,4 37

2,807,751
2 ,693,068

(5)
(5)

21,20 0 ,4 43

2 2 ,70 6,1 08

CORPORATION

Secured, by f a r m l a n d ................................................................................................................................
Secured by residential properties:
Secured by 1- to 4-famxUi residential properties:
Insured by Federal Housing A d m in istr a tio n ....................................................................
Guaranteed by Veterans A d m in istr a tio n ..........................................................................
Not insured or guaranteed by F H A or V A .......................................................................
Secured by multi fam ily (5 or more) properties:
Insured by Federal Housing Adm inistration 3 .................................................................
Not insured by F H A 3 .................................................................................................................
Secured by other properties ......................................................................................................................

INSURANCE

279,980,5912

C a s h , r e s e r v e s , b a l a n c e s w i t h b a n k s , a n d c o l le c t io n i t e m s — t o t a l .............................
Currency and c o in .........................................................................................................................................
Reserve with Federal Reserve banks ( m e m b e r b a n k s ) ............................................................
Dema nd balances with banks in the U.S. (except American branc hes of foreign banks)
Other balances with banks in the U .S ................................................................................................
Balances with banks in foreign cou nt rie s.........................................................................................
Cash items in process of colle ctio n.....................................................................................................

T o t a l a s s e t s .............................................................................................................................................................

Total loans and securities

3 6 4 , 7 0 6 ,0 6 8

4 0 6 , 4 4 0 ,1 6 8

4 2 1 , 8 4 8 ,9 4 8

Bank premises, furniture and fixtures, and other assets representing bank prem ises...
Real estate owned other than bank prem ises........................................................................
Investments in subsidiaries not consolidated3 .....................................................................
Customers' liab ility on acceptances outstanding...................................................................
Other assets..................................................................................................................................

3 ,4 5 0 ,2 1 7
93, 7 7 8

5 ,1 4 4 , 2 2 2 6

5 ,6 1 9 , 9 8 7 6

6,007,170
282 ,7 04

6 ,6 5 6 , 8 5 6
32 3, 2 5 7

1 ,6 5 1 ,5 9 5
1 ,5 2 8 ,0 3 6

1 ,8 6 2 ,5 7 1
3 ,1 8 5 , 7 4 8

2 ,1 7 8 ,0 1 7
3 ,7 5 4 ,9 6 1

2 , 3 1 4 ,7 7 2
4,601,878

2,472,778
6,290,722

8 , 0 7 0 ,0 5 9
360 ,8 20
651 ,0 95
3, 3 0 8 ,8 8 1
7 , 1 3 9 ,7 7 9

Total liabM ities, reserves, and cap ita l a c c o u n ts ...............................................................

2 7 9 , 9 8 0 ,5 9 1

3 7 9 , 4 0 5 ,3 8 4

4 0 7 , 2 8 3 ,2 6 9

4 5 5 , 4 4 5 ,1 8 4

5 0 5 , 4 5 3 ,7 3 2

5 3 0 , 7 1 4 ,7 1 1

Business and personal deposits— t o t a l..............................................................................
Individuals, partnerships, and corporations— demand.....................................................
Individuals, partnerships, and corporations—tim e ...........................................................

2 0 3 , 0 8 8 ,1 0 6
12 3, 4 8 9 ,6 8 6
7 4 ,5 6 1 ,0 8 4

2 7 5 , 2 0 5 ,3 5 7
1 3 9 , 0 7 7 ,9 2 0
1 3 0 , 1 9 5 ,4 3 6

2 9 3 , 5 6 5 ,7 5 7
1 44 ,3 2 3 ,6 7 2
1 42 ,2 6 1 ,0 8 9

3 2 9 , 8 6 0 ,0 3 3
1 5 8 , 4 9 1 ,3 4 0
16 2 , 7 2 7 ,9 1 8

36 1 , 9 9 3 ,2 4 7
17 2 , 0 0 6 ,9 7 3
1 8 0 , 5 0 6 ,2 7 8

3 6 5 , 9 3 4 .8 2 1
17 8, 1 8 5 ,6 8 3
17 6, 2 4 0 ,9 0 0

63,88 7,537
771,554
9,901, 993

3 0 8 , 7 7 6 ,1 2 4

92,554,897
1,078,207
36,562,3 32

3 2 7 , 0 7 8 ,4 5 4

90,076,746
1,223,553
50, 960, 790

9 4,451,4 58
1,283,923
66,99 2,537

96,16 6,256
1,2 15,522
8 3,124,500

93,796,3 02
1,129,305
81,315,2 93

6 ,9 8 0 , 9 9 6

8 ,6 4 0 , 7 7 5

9,479,996

1 1,5 0 8 ,2 3 8

3 3 ,7 6 8 ,3 8 2
4 ,9 9 0 , 1 6 4
257, 599
1 5 ,0 5 9 ,1 0 4
1 3 ,4 6 1 ,5 1 5

36,990.123
5 ,2 3 8 , 9 1 8
28 5, 53 3
1 5 ,5 7 7 ,9 4 2
1 5 ,8 8 7 ,7 3 0

4 1 ,3 8 5 , 2 7 8
5 ,0 1 2 , 4 4 5
376 ,6 29
1 6 , 8 8 1 ,0 4 2
1 9 , 1 1 5 ,1 6 2

36 ,0 9 2 ,2 0 0
5 , 0 5 0 ,5 3 8
222,5 60
1 7 ,5 5 9 .4 3 8
1 3 ,2 5 9 ,6 6 4

Dom estic in te rb a n k dep osits— t o t a l...................................................................................
Commercial banks in the United States— dem and...........................................................
Commercial banks in the United States—tim e .................................................................
Mutual savings banks in the United S ta te s-d e m a n d .....................................................
Mutual savings banks in the United States— tim e ............................................................

1 6 , 6 8 0 ,6 0 0
1 5 ,7 5 1 ,9 1 8
213,2 14
700 ,3 55
15,113

17 ,3 1 1 ,7 1 8
15 ,7 7 9 ,0 6 2
510 ,1 59
860 , 3 7 8
162,119

1 8 , 3 5 5 .3 2 1
1 6 ,9 4 7 ,2 2 8
47 6, 89 6
782, 52 5
148,672

2 0 , 6 6 0 .0 8 7
1 8 ,7 8 8 ,4 0 6
72 7, 01 4
93 5 ,2 12
209 , 4 5 5

23,221,458
21,424,784
714,271
93 3, 7 9 9
148, 604

2 4 .8 5 8 ,0 3 7
2 3 ,3 9 4 ,4 2 8
415,2 16
1 ,0 1 7 ,1 2 3
3 1,2 70

Foreign gove rnm ent and bank dep osits— t o t a l...............................................................
Foreign governments, central banks, etc.— demand.........................................................
Foreign governments, central banks, etc.—tim e ...............................................................
Banks in foreign countries— dem and..................................................................................
Banks in foreign countries—tim e .........................................................................................

4 .2 5 5 , 1 6 4
656 ,9 22
2 ,1 7 8 , 0 5 5
1 ,2 9 7 ,7 8 7
122,400

6 ,7 7 8 , 7 6 3
892 ,8 67
4 ,0 8 6 , 1 2 6
1 , 5 2 9 ,0 9 7
270 ,6 73

7,150.699
869 ,2 68
4,212,084
1 , 7 8 4 ,4 0 7
284 ,94 0

8.285.680
874, 451
5 ,1 6 6 , 2 2 8
1, 9 0 9 ,9 1 1
33 5, 09 0

8,051,716
866 ,8 85
4 ,7 5 2 , 7 3 2
2,118,758
313, 341

1 0 ,1 0 4 ,6 0 7
94 0, 23 9
6 , 3 7 8 ,9 6 4
2 , 4 7 5 ,0 9 8
310, 30 6

T otal d e p o s its ....................................................................................................................

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

2 4 7 , 9 0 4 ,8 7 5

3 3 1 , 5 1 2 ,6 8 1

183,836,865
147,675,816

191,737,364
161,102,795

210, 456, 955
185,338,968

228,7 24,68 2
2 05,927,017

240,130,785
196,858,880

M iscellaneous lia b ilitie s — t o t a l.............................................................................................
Federal funds purchased (borrow ed)7 ................................................................................
Other liabilities for borrowed money...................................................................................
Mortgage indebtedness 3 ........................................................................................................
Acceptances outstanding........................................................................................................
Othar lia b ilitie s ........................................................................................................................

7 , 3 4 6 ,2 7 2
462, 30 9

1 3 . 9 7 6 ,4 9 6
2 , 4 3 8 ,4 1 3
1 ,8 9 8 ,2 9 0

18 ,4 1 3 ,0 0 9
2 ,8 2 4 , 0 8 8
1 ,9 0 4 ,5 1 3

2 0 .9 1 0 ,7 3 1
4 ,9 8 0 , 3 2 2
568,79 7

2 8 .9 5 8 .2 1 7
7 ,4 6 8 , 2 0 0
1 ,2 1 4 ,4 4 0

1 ,6 8 9 ,4 0 6
5 ,1 9 4 ,5 5 7

1 , 8 9 7 ,5 6 9
7 ,7 4 2 , 2 2 4

2,234,455
1 1 ,4 4 9 ,9 5 3

2 ,3 8 2 ,0 7 2
1 2 ,9 7 9 ,5 4 0

2 , 5 0 8 ,7 0 7
1 7 ,7 6 6 ,8 7 0

4 7 ,9 6 6 ,7 2 5
14 ,6 8 4 ,7 0 0
3 ,3 6 7 ,3 4 2
601, 562
3 ,3 8 7 ,3 0 9
2 5 ,9 2 5 ,8 1 2

T o ta l lia b ilitie s ..................................................................................................................

2 5 5 , 2 5 1 ,1 4 7

3 4 5 , 4 8 9 ,1 7 7

3 7 1 , 2 5 3 ,1 6 8

4 1 6 , 7 0 6 ,6 5 4

463,609,916

4 8 4 , 9 5 6 ,3 9 0

2 .6 0 6 . 4 7 4
2 .6 0 6 .4 7 4

4 .0 1 1 . 2 7 3
4 . 0 1 1 .2 7 3

4 .3 3 6 . 9 3 3
4 .3 3 6 . 9 3 3

4 .7 3 2 . 6 0 6
4 .7 3 2 . 6 0 6

5 . 2 1 5 .8 1 7
5 . 2 1 5 .8 1 7

6 , 1 7 8 ,7 9 7
5 , 8 8 5 ,8 7 3
108,824
184,100

165,092,941
82,811,9 34

3 5 2 , 8 4 0 ,1 5 9

3 9 5 . 7 9 5 .9 2 3

4 3 4 , 6 5 1 .6 9 9

M in o rity in te re s t in consolidated s u b s id ia rie s ..............................................................

3, 2 9 5

265

Reserves on loans and s e c u ritie s — t o t a l..........................................................................
Reserve for bad debt losses on loans..................................................................................
Other reserves on loans3.......................................................................................................
Reserves on securities3..........................................................................................................

4 3 6 , 9 8 9 ,6 6 5

OF BANKS

5 ,9 3 2 ,0 0 1
32,216.843
5 , 5 2 3 ,8 1 6
281 ,3 30
14 ,2 4 1 ,7 2 4
1 2 ,1 6 9 ,9 7 3

LIABILITIES

5 ,0 3 7 ,3 3 6
23 .8 8 1 ,0 0 5
5,9 4 3 ,2 5 1
280,0 30
12 ,2 1 5 ,6 8 6
5 , 4 4 2 ,0 3 8

AND

Certified and officers' checks, letters of credit, travelers' checks, etc...........................
G overnm ent dep osits— t o t a l..................................................................................................
United States Government— dem and...................................................................................
United States Government— tim e .........................................................................................
States and subdivisions— dem and.......................................................................................
States and subdivisions—tim e .............................................................................................

ASSETS

Savings deposits .................................................................................................................................
Deposits accumulated for payment of personal loans ..............................................................
Other deposits of individuals, partnerships, and corporations ..............................................

2 1 7 , 0 7 5 ,4 9 8

266
Table 108. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS).
DECEMBER CALL DATES, 1961, 1965-1969-CONTINUED
(Amounts in thousands of dollars)
Dec. 31, 1966

Dec. 30, 1967

Dec. 31, 1968

Dec. 31, 19691

Capital a ccou nts— t o t a l.......................................................................................................
Capital notes and debentures................................................................................................
Equity capital— total .........................................................................................................

22.122,970
22,107
22,100,863

29,904,934
1,652,701
28,252,233

31,693,168
1,729,902
29,963,266

34,005,924
1,984,390
32,021,534

36,627,999
2,110,137
34,517,862

39,576.229
1,998,316
37,577,913

20.1%

15.9%

16.9%

24.3
7.7

16.8
10.5

45.5
2.4
7.9

54.1
2.7
7.9

Preferred stock ....................................................................................................................................
Common stock ......................................................................................................................................
Surplus .................................................................................................................................................
Undivided profits ...............................................................................................................................
Reserve for contingencies and other capital reserves..................................................................

PERCENTAGES
O f to ta l assets:
Cash and balances with other banks....................................................................................
U.S. Treasury securities and securities of other U.S. Government agencies and corpo
rations ....................................................................................................................................
Other securities.........................................................................................................................
Loans and discounts (including Federal funds sold and securities purchased under
agreements to re s e ll)...........................................................................................................
Other assets...............................................................................................................................
Total capital accounts..............................................................................................................

14,745
6,584,701
10,798,364
4,156,764
546,289

39,890
8,507,770
13,464,797
5,437,575
802,201

90,686
9,772,605
16,173,907
7,419,669
1,060,995

103,416
10,529,322
17,460,832
8,426,787
1,057,556

17.0%

16.5%

16.8%

15.2
10.4

15.6
11.5

14.7
12.1

11.8
11.8

54.7
2.8
7.8

53.0
2.9
7.5

53.6
3.1
7.2

55.9
3.7
7.5

61,583
8,856,837
13,998,697
6,166,477
879,672

87,076
9,253,642
14,983,375
6,610,743
1,086,698

14.0

11.5

11.2

10.8

10.2

Number of banks.............................................................................................................................

13,115

13,547

13,541

13,517

13,488

13,473

1 For description of changes in 1969 in the Report of Condition, see p. 253 and notes to tables.
2 Assets in 1968 and prior years include “ Other loans and discounts" at gross (before deduction of valuation reserves) value, as reported in 1969. "Other loans and discounts" in 1965-1968 exclude
Federal funds sold, now reported separately.
sNot available prior to figure shown, see note 1.
4 Prior to December 31, 1965, “ Federal funds sold (loaned)" not reported separately; most were included with loans to banks. Beginning in 1967, includes securities purchased under agreements to
resell, which previously were reported with “ Loans to domestic commercial and foreign banks” and “ Other loans for purchasing or carrying securities."
6Before 1967, loans extended under credit cards and related plans were distributed among other installment loan items.
6 Net of mortgages and other liens; previously included with “ Other liabilities." Includes real estate owned other than bank premises.
7 Prior to December 31, 1965, Federal funds purchased were included in “ Other liabilities for borrowed money"; beginning in 1967, includes securities sold under agreements to repurchase, which
previously were reported with “ Other liabilities for borrowed money.”

CORPORATION

Of to ta l assets o th e r than cash and U.S. T re a s u ry s e c u ritie s :
Total capital accounts.............................................................................................................

INSURANCE

Dec. 31, 1965

DEPOSIT

Dec. 30, 1961

FEDERAL

Asset, liab ility , or capital account item

Table 109. ASSETS AND LIABILITIES OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER CALL DATES, 1961, 1965-1969
(Amounts in thousands of dollars)
Asset, liability, or surplus account item

Dec. 30, 1961

Dec. 31, 1965

Dec. 31, 1966

Dec. 30, 1967

Dec. 31, 1968

Dec. 31, 1969

T o ta l a sse ts........................................................................................................................

37,064,623

50,499,716

53,049,468

57,867,208

62,123,491

64,633,716

Cash, balances w ith banks, and c o lle c tio n item s— to ta l.................................
Currency and coin.......................................................................................................
Demand balances with banks in the United States..............................................
Other balances with banks in the United States...................................................
Cash items in process of collection..........................................................................

828.199
126,598
490,382
167,637
43,582

904,000
142,598
493,600
212,193
55,609

847,825
145,587
474,276
166,743
61,219

881,596
153,639
461,378
202,325
64,254

883,058
164,965
497,725
157,610
62,758

780,079
179,378
499,506
42,964
58,231

11.802,948

11,843,577

3.110,649
13,610
3,124,259

2,854,896
12,559
2,867,455

2,445,609
13,004
2,458,613

Treasury bills ........................................................................................................................
Treasury certificates of indebtedness...............................................................................
Treasury notes maturing in 1 year or le ss ..................................................................
Treasury notes maturing after 1 year .............................................................................
United States nonmarketable bonds ................................................................................
Other bonds maturing in 1 year or less ..........................................................................
Other bonds maturing in 1 to 5 years ............................................................................
Other bonds maturing in 5 to 10 years ...........................................................................
Other bonds maturing after 10 years ..............................................................................

137,757
43,881
233,269
660,190
165,631
64,902
393,825
1,328,363
1,617,533

309, 700
146,292
89,827
67,037
32,008
856,373
980,222
1,183,254

289,812
16,900
98,058
219,584
61,857
34,647
797,174
684,249
1,003,468

365,155
50
109,244
487,248
36,129
70,330
604,801
386,957
902,375

284,785
1,800
146,108
696,291
25,560
116,940
453,476
152,659
808,814
181,022

122,070
2,043
158,515
654,983
13,997
91,152
437,306
11,718
762,119

204,710

O b ligations o f States and su b d ivisio n s, n e t.........................................................
Valuation reserves......................................................................................................
O b ligations of States and su b d ivisio n s, g ro s s .....................................................

628,978
10,236
639,214

300,273
6,927
307,200

236,697
6,168
242,865

205,323
6,126
211,449

185,211
5,733
190,944

185,388
5,561
190,949

O ther bonds, notes, and deb entu res, net— t o ta l................................................
Valuation reserves.......................................................................................................
O ther bonds, notes, and deb entu res, gross— t o t a l............................................
Railroads.......................................................................................................................
U tilitie s ..........................................................................................................................
Ind u stria ls.....................................................................................................................
Securities of Federal agencies and corporations not guaranteed by U.S................
A ll other........................................................................................................................

3,850,055
23,363
3,873,418
516,916
1,824,076
477,080
505,463
549,883

3,574,161
21,021
3,595,182
357,906
1,523,624
404,512
842,356
466,784

3,941,772
22,642
3,964,414
368,290
1,654,151
429,976
1,009,066
502,931

5,752,972
24,055
5,777,027
480,595
2,714,948
760,267
1,049,964
771,253

7,150,316
22,634
7,172,950
500,629
3,436,139
950,371
1,235,256
1,050,555

7,396.659
26,765
7,423,424
512,297
3,624,115
953,590
1,149,455
1,183,967

Corporate stocks, n e t— t o t a l.....................................................................................
Valuation reserves.......................................................................................................
Corporate stocks, gross— t o t a l.................................................................................
Bank..............................................................................................................................
O ther..............................................................................................................................

678,811
66,668
745,479
171,616
573,863

1,135,976
46,597
1,182,573
221,935
960,638

1,173,619
42,067
1,215,686
225,177
990,509

1,378,084
38,615
1.416,699
232,232
1,184,467

1,612,525
35,084
1.647,609
246,455
1,401,154

1.815,921
37,918
1,853,839
251,903
1,601,936

Loans and disco u n ts, ne t— t o t a l................................ ............................................
Valuation reserves.......................................................................................................
Loans and d iscounts, gross— t o t a l..........................................................................
Real estate loans— to ta l..............................................................................................

25,812,078
219,703
26,031,781
25,639,686

39,964,343
209,331
40,173,674
39,435,679

42,593,177
140,483
42,733,660
41,808,403

45,492,445
126,789
45,619,234
44,595,807

48,287,403
121,876
48,409.279
47,177,405

50,828.568
120,928
50,949,496
49,329,087

Guaranteed obligations...............................................................................................

Secured by farm land ...........................................................................................................

68,388

45,346

111,035

46,819

131,417

47,719

161,970

110,695

111,935

106,943

267

10.447.028

3,323,662
13,504
3,337,166

OF BANKS

8.675.750

3,759,961
15,787
3,775,748

LIABILITIES

8,770,371

4.689,898
23,841
4,713,739

AND

9.847.742

O blig a tio n s o f th e U.S. G overnm ent, n e t— t o t a l.................................................
Valuation reserves.......................................................................................................
O blig a tio n s o f th e U.S. G overnm ent, gross— t o t a l.............................................

ASSETS

S e cu ritie s—t o t a l...........................................................................................................

Table 109. ASSETS AND LIABILITIES OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER CALL DATES, 1961, 1965-1969-CONTINUED
268

(Amounts in thousands of dollars)
Asset, liability, or surplus account item

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

Dec. 31, 1965

Dec. 31, 1966

Dec. 30, 1967

Dec. 31, 1968

Dec. 31, 1969

7,565,963
8,378,382
7,288,248
2,361,747

12,911,024
10,427,383
12,245,612
3,804,841

13,563,472
10,473,930
13,490,913
4,232,369

14,057,536
10,756,786
14,824,567
4,846,223

14,500,512
10,940,229
16,029,770
5,594,959

14,742,577
11,030,456
17,193,309
6,255,802

112,337
235,492
44,266

144,698
515,673
77,624

191,599
617,747
115,911

158,428
734,973
130,026

237.600
869.601
124,673

206,348
987,198
426,863

55.939.473

60,090,351

62,672,145

329,951
57,444
27,798
517,523

355,946
72,833
30,617
586,743

382,353
88,068
36,449
643,212

400,375
96,684
47,607
636,826

Total liabilities and surplus accounts..........................................................................

37,064,623

50,499,716

53,049,468

57,867,208

62,123,491

64,633,716

Deposits— to ta l...................................................................................................................
Demand deposits of individuals, partnerships, and corporations.......................
Time deposits of individuals, partnerships, and corporations.............................
Other deposits (official checks, e tc .)........................................................................
States and subdivisions..............................................................................................
United States Government..........................................................................................
Interban k.......................................................................................................................

33,399,591
246,989
33,121,088
6,796
17,780
6,140
798

45,887,291
345,204
45,491,617
11,952
29,929
7,202
1,387

48,255,636
366,110
47,834,854
11,513
35,384
6,445
1,330

52,912,962
412,089
52,443,585
14,327
35,548
6,151
1,262

56,861,324
463,777
56,339,968
18,571
30,499
6,231
2,278

58,867,848
503,982
58,303,307
18,378
32,660
7,213
2,308

Total demand deposits .........................................................................................................
Total savings and time deposits
.......................................................

261,901
33,137,690

366,152
45,521,139

387,162
47,868,474

435,035
52,477,927

489,980
56,371,344

533,836
58,334,012

Miscellaneous lia b ilitie s ................................................................................................

474,350

655,013

653,735

716,615

781,183

1,068,152

Total liabilities (excluding surplus accounts)..................................................

33,873,941

46,542,304

48,909,371

53,629,577

57,642,507

59,936,000

Surplus accounts— to ta l.................................................................................................

3,190,682
2,269,864
624,503
296,315

3,957,412
2,798,625
822,112
336,675

4.140,097
2,923,692
821,662
394,743

4,237,631
3,072,343
774,284
391,004

4,480,984
3,245,950
842,645
392,389

4.697,716
3,317,372
970,376
409,968

2.2%
12.7
13.9
69.6
1.6
8.6

1.8%
7.5
9.9
79.1
1.7
7.8

1.6%
6.3
10.1
80.3
1.7
7.8

1.5%
5.4
12.7
78.6
1.8
7.3

1.4%
4.6
14.4

1.2%
3.8
14.5
78.6
1.8
7.3

Surplus...........................................................................................................................
Undivided profits..........................................................................................................
Other segregations of surplus....................................................................................

PERCENTAGES
Of total assets:
Cash and balances with other banks............................................................................
U.S. Government obligations, direct and guaranteed................................................

Other securities....................................................................................................................
Other assets...........................................................................................................................
Total surplus accounts........................................................................................................
Of total assets other than cash and U.S. Government obligations:
Total surplus accounts........................................................................................................

71.7
1.9
7.2

10.1

8.6

8.5

7.9

7.7

330

329

332

333

334

331

CORPORATION

51,268,927

308,289
45,641
27,295
479,777

INSURANCE

48,734,714

223,326
23,489
20,211
309,578

Total loans and securities................................................. ......................................

DEPOSIT

35,659,820

Bank prem ises..................................................................................................................
Furniture and fixtu re s.....................................................................................................
Real estate owned other than bank prem ises.............................................................
Miscellaneous assets.......................................................................................................

FEDERAL

Commercial and industrial loans (including open market pap er).......................
Loans to individuals for personal expenditures.....................................................
A ll other loans (including o verdrafts)......................................................................

Dec. 31, 1961

Table 110. PERCENTAGES OF ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1969 IN
THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1969
BANKS GROUPED BY AMOUNT OF DEPOSITS
Banks with deposits of—
Asset, liability, or capital account item

T ota l asse ts.............................................................

All
banks

Less
than
$1 million

$1 m illion
to
$2 million

$2 million
to
$5 million

$5 million
to
$10 million

$10 million
to
$25 million

$25 million
to
$50 million

$50 m illion $100 million $500 million
to
to
to
$100 million $500 million
$1 billion

$1 billion
or
more

100.0%

13.3
27.2
3.4
8.4
2.5

12.3
22.4
7.4
6.7
2.9

11.9
18.1
11.2
5.2
3.2

11.9
15.5
13.2
4.1
2.9

12.4
12.9
13.5
3.5
2.2

13.2
12.0
13.9
3.1
2.0

16.4
10.0
12.5
1.7
1.6

19.1
7.6
11.1
1.1
2.1

20.5
6.2
8.6
8
1.2

Other loans and discounts— to ta l................................
Real estate...................................................................
To banks and other financial in stitutio ns ..............
To purchase or carry securities...............................
To farm ers...................................................................
Commercial and in d u stria l.......................................
Installm ent loans for personal expenditures
Single-payment loans for personal expenditures..
All other loans............................................................

54.1
13.2
3.3
1.8
2.0
20.4
8.8
3.2
1.4

38.5
7.1
1.3
.4
14.5
4.2
7.4
2.7
.8

44.1
10.6
.5
.3
16.5
5.4
7.7
2.5
.6

46.9
14.3
.5
.3
12.8
6.7
8.8
2.9
.5

48.7
15.6
.6
.6
8.7
8.7
10.7
3.2
.6

50.3
16.8
.7
.8
4.5
10.7
12.4
3.7
.7

52.9
17.6
.9
1.0
1.9
13.7
13.3
3.9
.7

52.9
17.7
1.3
1.2
1.0
15.1
12.1
3.7
.8

54.4
15.3
2.5
1.5
.8
17.8
11.1
4.0
1.4

54.7
12.9
4.7
1.2
.4
21.0
8.7
4.0
1.8

56.5
9.3
5.4
3.0
6
29.2
4.7
2.3
1.9

4.2

1.2

1.1

1.4

1.8

2.1

2.6

2.9

3.4

4.2

6.2

100.0

82.3

84.2

88.0

89.1

89.6

42.2

89.2

4 0 .9
4 8 .3

87.5

85.6

4 7.4

4 6 .7

4 5 .5

42.0

46.2
3 9.4

50.1
3 1.7

46.7
2 8.5

Deposits—to ta l...............................................................

D e m a n d .............................................................................
T i m e ...................................................................................

4 5.3
3 7 .0

58.5
2 5 .7

5 0.3
3 7 .7

4 3.8
4 5.4

88.3

4 1.6

81.8

75.2

Individuals, partnerships, and corporations—
demand....................................................................
Individuals, partnerships, and corporations— time
U.S. Government.........................................................
States and subdivisions............................................
Domestic interbank....................................................
Foreign government and b an k.................................
Other deposits.............................................................

33.8
33.1
1.0
5.8
5.0
1.4
2.2

51.4
22.3
.4
9.3
.4
.0
.4

43.2
34.3
.6
9.2
.3
.0
.5

36.7
42.2
.8
8.5
.3
.0
.6

34.8
44.3
1.1
8.2
.3
.0
.8

33.7
45.3
1.2
7.6
.6
.0
.9

34.4
43.8
.9
6.8
1.3
.0
1.0

33.5
41.8
.9
7.5
2.5
.2
1.2

35.2
36.3
1.0
6.9
5.1
.1
1.1

36.1
29.1
1.1
7.3
6.8
.3
1.1

32.1
23.3
1.0
3.4
8.0
3.5
4.0

Federal funds purchased (borrow ed)3.......................
Other liabilities for borrowed money..........................
Other lia b ilitie s4.............................................................
Reserves on loans and securities................................
Capital notes and debentures......................................
Other capital accounts...................................................

2.8
.6
5.6
1.1
.4
7.1

.0
.0
.4
.3
.0
15.1

.0
.0
.7
.6
.0
10.7

.0
.1
.9
.7
.0
9.1

.1
.1
1.4
.9
.0
8.1

.2
.1
2.0
.8
.1
7.5

.3
.2
2.7
1.1
.2
7.2

.9
.3
2.8
1.0
.3
7.1

2.1
.4
3.2
1.1
.3
7.3

4.9
1.1
3.4
1.1
.7
6.8

4.7
1 1
10.5
1.4
5
6.7

Number of banks...............................................................

13,357

201

1,009

3,457

3,430

3,178

1,095

476

403

269

S e c u ritie s held in trading accounts are included in "Other assets."
2 Includes securities purchased under agreements to resell.
3 Includes securities sold under agreements to repurchase.
4 Includes minority interest in consolidated subsidiaries.
Note: For income and expense data by size of bank, see tables 116 and 117, pp. 281-284 . Assets and liabilities (in $000) of all commercial banks by size of bank are contained in
(with 1969 report of income), December 31, 1969.

Liabilities-Commercial and Mutual Savings Banks

OF BANKS

Other assets1...................................................................
T otal lia b ilitie s , reserves, and cap ita l a c c o u n ts ..

LIABILITIES

100.0%

17.9
27.6
2.0
9.4
3.5

AND

100.0%

16.9
10.1
10.9
2.1
1.8

ASSETS

100.0%

Cash and due from banks.............................................
U.S. Treasury securities1..............................................
Obligations of States and political subdivisions1___
Other securities 1....................................................
Federal funds sold (loan ed)2.......................................

Assets and

270

Table 111. PERCENTAGES OF ASSETS AND LIABILITIES OF INSURED MUTUAL SAVINGS BANKS OPERATING THROUGHOUT 1969 IN
THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1969
BANKS GROUPED BY AMOUNT OF DEPOSITS
Banks with deposits of—
Asset, lia b ility, or surplus account item

All
banks

Less
than
$5 million

$5 million
to
$10 million

$10 million
to
$25 million

$25 million
to
$50 million

$50 m illion
to
$100 million

$100 million
to
$500 million

$500 million
to
$1 billion

100.0%

3.7

2.5

2.1

1.8

1.7

1.3

1.2

Obligations of the U.S. Government, n e t....................................................
Other securities, net ...................................................................................
Valuation reserves ....................................................................................

3.8
.0
14.5
.1

5.6
.0
13.9
.5

12.5
.0
14.3
.0

6.8
.0
16.6
.1

5.7
.0
13.2
.1

4.3
.0
15.3
.1

4.0
.0
14.7
.1

3.6
.0
13.9
.1

2.9
.0
15.0
.1

Loans and discounts, n e t...............................................................................
Valuation reserves......................................................................................
Real estate loans—total .........................................................................

78.6
.2
76.3

75.0
.4
68.3

69.1
.1
64.4

73.2
.2
68.8

78.0
.2
73.6

77.2
.2
74.1

78.2
.1
75.3

79.6
.2
77.9

79.0
.2
77.4

.2
5.0
2.0

.2
3.5
1.1

.2
3.3
.9

.4
3.0
1.3

.1
2.4
.8

.4
1.8
.9

.2
1.1
.6

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

Commercial and industrial loans ('includinR open market p a p e r)........
Loans to individuals for personal expenditures....................................
All other loans (including overdrafts).....................................................

.2
22.8
17.1
26.6
9.7

.3
1.5
.7

1.4
10.4
2.6
49-4
4-4

.8
6.0
5-4
43.4
8.9

.6
8.3
6.5
46.5
7.0

.3
11.5
9.2
44 2
8.3

.1
15.0
11.1
39.5
8.4

.0
21.3
16.8
28.5
8.7

4
25.3
16.8
24.6
10.8

.0
26.9
21.6
18.5
10.4

.5
1.0
.4

1.8

1.5

1.3

1.2

1.5

1.8

2.0

1.9

100.0

Deposits—total
.......................................................................
Demand deposits of individuals, partnerships, and corporations___
Time deposits of individuals, partnerships, and corporations...........
Other deposits .........................................................................................

91.1
.8
90.2
.1

91.4
.4
90.3
.7

90.6
.2
89.2
1.2

90.9
.5
90.0
.5

91.1
.8
89.7
.5

90.9
.9
89.9
.2

91.6
.9
90.6
.1

91.0
.7
90.3
.0

90.7
.8
89.9
.0

1.7

1.3

1.2

1.3

1.7

2.4

Miscellaneous liabilities

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

Surplus accounts— total
...........................................................................
Surplus
...........................................................................
Undivided profits
...........................................................................
Other segregations of surplus..................................................................

7.3
5.1
1.5
.6
329

Note: Dollar amounts of assets and liabilities of all mutual savings banks are shown in

7.3
3.6
2.4
1.3

8.7
5.2
2.6
.8

8.5
5.0
2.7
.8

8.1
4.7
2.4
1.0

Assets and Liabilities— Commercial and Mutual Savings Banks

7.9
4.7
2.5
.7

7.2
4.9
1.7
.6

7.3
5.3
1.4
.6

7.0
5.4
.9
.7

(with 1969 report of income); see table 110 notes.

CORPORATION

Other assets.....................................................................................................
T o ta l lia b ilitie s and su rp lu s a c c o u n ts ......................................................

INSURANCE

100.0%

1.2

DEPOSIT

100.0%

Cash and due from banks.............................................................................

T o ta l a s s e ts .......................................................................................................

FEDERAL

100.0%

$1 billion
or
more

Table 112. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1969
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS
Number of banks with deposits of—
Less
than
$1 million

$1 million
to
$2 million

782
2,220
2,886
2,510
1,854
1,285
762
511
278
166
219

$10 m illion
to
$25 m illion

$25 m illion
to
$50 million

$50 million $100 million $500 million
to
to
to
$100 m illion $500 m illion
$1 billion

$1 billion
or
more

286
215
147
166
84
66
31
18
10
10
13
5

375
375
426
530
451
404
301
220
153
103
96
60

135
87
129
293
403
547
536
456
329
198
215
106

55
34
55
140
246
461
526
543
433
295
270
122

13
8
14
40
90
134
176
189
163
123
11Q
11?
27

1
2
3
14
23
63
88
97
92
40
OO
17

14
22
25
22
32
21
21
32
15
10
17

38
77
122
139
137
142
124
91
61
41
79

160
328
517
587
549
501
331
225
130
70
96

182
482
733
735
552
358
175
113
47
35
22

204
617
813
714
443
213
95
46
23
8
4

82
296
361
212
92
36
11
3
2

38
158
161
67
36
12
3

39
175
138
34
11
2
2
1

1
3
13
37
73
73
67
61
36
OZ
7

1
2
10
11
16
8
5
3
Lo

1
2
9
13
14
5
4
1
1

R atios o f U.S. T re a su ry s e c u ritie s to to ta l assets
of
Less than 5 ........................................................................
5 to 9.99.............................................................................
10 to 14.99.........................................................................
15 to 19.99.........................................................................
20 to 24.99.........................................................................
25 to 29.99.........................................................................
30 to 34.99.........................................................................
35 to 39.99.........................................................................
40 to 44.99.........................................................................
45 to 49.99.........................................................................
50 or m ore.........................................................................

12
32
5

271

13
33
11

OF BANKS

123
37
26
20
11
5
2
3
1
2

$5 m illion
to
$10 m illion

LIABILITIES

988
759
805
1,220
1,364
1,777
1,763
1,606
1,251
810
784
346

$2 m illion
to
$5 million

AND

R atios o f o b lig a tio n s o f States and s u b d iv is io n s
to to ta l assets o f—
Zero...............................................................................
More than 0.0 but less than 1.0.....................................
1.0 to 2.49....................................................................
2.5 to 4.99....................................................................
5.0 to 7.49....................................................................
7.5 to 9.99..........................................................................
10.0 to 12.49................................................................
12.5 to 14.99......................................................................
15.0 to 17.49......................................................................
17.5 to 19.99......................................................................
20.0 to 24.99............................................................
25.0 or more......................................................................

All
banks

ASSETS

Ratios
(In percent)

272

Table 112. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
DECEMBER 31, 1 9 6 9 -CONTINUED
Number of banks with deposits of—
Ratios
(In percent)

Al!
banks

$1 million
to
$2 million

$2 million
to
$5 million

$5 million
to
$10 million

$10 million
to
$25 million

$25 million
to
$50 million

25
10
23
14
28
18
31
24
19
18
10
5
6

31
35
70
66
106
151
146
135
139
84
48
26
14

43
50
117
198
328
469
499
561
527
352
213
86
51

20
33
66
145
255
370
523
615
604
446
220
107
30

7
8
29
89
163
324
516
669
627
439
227
65
17

5
12
34
78
166
210
266
205
89
19
11

R atios o f cash and due fro m banks to to ta l assets
o f—
Less than 5 ........................................................................
5.0 to 7.49..........................................................................
7.5 to 9.99..........................................................................
10.0 to 12.49......................................................................
12.5 to 14.99......................................................................
15.0 to 17.49......................................................................
17.5 to 19.99......................................................................
20.0 to 24.99......................................................................
25.0 to 29.99......................................................................
30.0 or m ore......................................................................

323
1,760
2,996
2,850
2,062
1,319
838
840
311
174

2
20
19
31
35
20
27
33
18
26

31
124
189
206
141
121
79
104
33
23

103
501
762
759
495
319
222
195
91
47

82
513
810
730
542
314
190
175
57
21

66
412
830
719
483
284
165
144
50
27

28
123
240
220
203
141
58
65
15
3

2
1
4
4
15
33
70
121
81
100
36
11

7
44
90
105
81
59
38
41
7
4

4
11
22
43
85
115
90
28
1
2

4
23
54
68
61
48
41
62
24
18

1
4
19
22
9
4

1
3
8
19
15
2
1

1
9
9
7
8
12
12
1

1
3
12
6
10
9
4
4

CORPORATION

129
137
314
532
941
1,466
2,001
2,447
2,419
1,758
877
321
131

$1 billion
or
more

INSURANCE

R atios o f lo ans to to ta l assets o f—
Less than 20......................................................................
20 to 24.99.........................................................................
25 to 29.99.........................................................................
30 to 34.99.........................................................................
35 to 39.99.........................................................................
40 to 44.99.........................................................................
45 to 49.99.........................................................................
50 to 54.99.........................................................................
55 to 59.99.........................................................................
60 to 64.99.........................................................................
65 to 69.99.........................................................................
70 to 74.99.........................................................................
75 or m ore.........................................................................

$50 million $100 million $500 million
to
to
to
$100 million $500 million
$1 billion

DEPOSIT

Less
than
$1 million

FEDERAL

B A N KS GROUPED A C C O R D IN G TO A M O U N T OF DEPOSITS AND BY RATIOS OF SELECTED ITEM S TO ASSETS OR DEPOSITS

67
179
281
413
525
524
479
353
2 11
139
161
68
94

96
186
315
455
547
529
455
313
234
143
90
39
32

87
172
320
452
540
496
405
335
202
91
58
16
6

21
48
104
154
174
166
165
117
60
50
29
5
3

5
23
51
56
81
62
67
53
36
23
13
5
1

7
5
23
37
55
50
51
53
39
34
42
5
2

R atios of to ta l ca p ita l accou nts to to ta l assets
o th e r than cash and due from banks, U.S.
T re a su ry s e c u ritie s , and U.S. G overnm ent
agency s e c u ritie s o f—
Less than 7.5.......................................................
7.5 to 9.99..........................................................................
10.0 to 12.49......................................................................
12.5 to 14.99......................................................................
15.0 to 17.49......................................................................
17.5 to 19.99......................................................................
20.0 to 22.49......................................................................
22.5 to 24.99......................................................................
25.0 to 29.99......................................................................
30.0 to 34.99......................................................................
35.0 to 39.99......................................................................
40.0 or m ore......................................................................

432
2,941
3,766
2,371
1,364
787
538
327
374
195
113
265

1
3
13
9
18
21
22
29
24
14
77

2
25
72
150
154
113
107
95
107
73
40
113

18
262
709
765
599
353
261
157
180
72
54
64

79
712
1,157
743
319
209
102
41
43
19
2
8

157
1,083
1,1 0 2
494
2 12
66
37
11
8
4
3
3

97
445
379
111
39
13
7

37
199
172
43
11
10
1

i
24
23
9
2

5
21
18
4

4
1

2
1

35
169
131
39
19
5
2
1
1
1

254
1,064
2,616
3,079
2,301
1,483
984
609
323
354
156
250

..............2
4
7
13
16
16
30
22
35
25
61

2
16
60
109
155
147
132
122
65
104
48
91

19
132
447
691
626
530
391
263
142
127
51
75

52
271
722
859
660
396
230
109
46
55
20
14

99
377
810
827
533
263
146
57
31
21
10
6

46
145
308
302
160
60
41
18
6
6
2
2

21
68
122
141
67
29
13
6
5
3

13
44
110
112
66
33
13
3
6
3

1
2
16
19
14
5
1
1

1
7
17
12
7
4
1

13,473

231

1,051

3,494

3,434

3,180

1,096

476

403

3
6
3
6
5
8
15
10
3

2
1
8
2
6
7
5
8
6
4

R atios o f to ta l ca p ita l acco u n ts to to ta l assets
Less than 5 ........................................................................
5 to 5.99.............................................................................
6 to 6.99............................................................................
7 to 7.99.............................................................................
8 to 8.99.............................................................................
9 to 9.99.............................................................................
10 to 10.99.........................................................................
11 to 11.99.........................................................................
12 to 12.99.........................................................................
13 to 14.99...........................................................
15 to 16.99.......................................................................
17 or m ore...........................................................
Number of banks...........................................

273

OF BANKS

11
26
54
65
106
136
132
120
96
66
99
47
93

LIABILITIES

1
2
6
5
9
11
23
29
21
19
33
25
47

AND

295
641
1,159
1,638
2,051
1,979
1,789
1,385
912
588
541
217
278

ASSETS

R a tios of to ta l demand deposits to to ta l deposits
o f—
Less than 2 5 ......................................................................
25 to 29.99.........................................................................
30 to 34.99.........................................................................
35 to 39.99.........................................................................
40 to 44.99.........................................................................
45 to 49.99.........................................................................
50 to 54.99.........................................................................
55 to 59.99.........................................................................
60 to 64.99.........................................................................
65 to 69.99.........................................................................
70 to 79.99.........................................................................
80 to 89.99.........................................................................
90 or m ore.........................................................................

274

INCOME OF INSURED BANKS
Table 113. Income of insured commercial banks in the United States (States and other areas),
1961-1969

Table 115. Income of insured commercial banks in the United States (States and other areas),
1969
Banks groupe d by class of bank

FEDERAL

Table 114. Ratios of income of insured commercial banks in the United States (States and
other areas), 1961-1969

Table 116. Income of Insured commercial banks operating throughout 1969 in the United
States (States and other areas)
Banks grou p e d by am ount of deposits

DEPOSIT

Table 117. Ratios of income of insured commercial banks operating throughout 1969 in
the United States (States and other areas)
Banks g roupe d according to am ount of deposits

INSURANCE

Table 119. Ratios of income of insured mutual savings banks in the United States (States
and other areas), 1961-1969
The income data received and published by the Corporation
relate to commercial and mutual savings banks insured by the
Corporation.
Commercial banks
Prior to 1969, reports of income and dividends were submitted
to the Federal supervisory agencies on either a cash or an accrual
basis. Beginning in 1969, the revised consolidated reports of income

are submitted on an accrual basis for banks with assets of $50
million or more (the cutoff figure will be $25 million in 1970).
Smaller banks continue to have the option of subm itting their
reports on a cash or an accrual basis, except that unearned dis
count on installment loans, and income taxes, must be reported
on an accrual basis. For more detail on the method of cash or ac
crual reporting by banks, and on the inclusion of subsidiaries in con
solidated statements of condition and income, refer to page 253 of
this report.

CORPORATION

Table 118. Income of insured mutual savings banks in the United States (States and other
areas), 1961-1969

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.

BANKS

Mutual savings banks

OF INSURED

Sources of data
National banks and State banks in the District of Columbia not
members of the Federal Reserve System: Office of the Comptroller
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.

275

“ Total provision for income taxes" is a memorandum item. It
does not necessarily equal the sum of “ Applicable income taxes"
and the tax effects of security gains or losses and of extraordinary
charges or credits. The principal difference is accounted for by the
fact that the transfer to reserve for bad debts generally exceeds
provision for loan losss and, consequently, tends to reduce tax
liability.
In comparing the 1969 report with prior data, certain general
izations are applicable. Because of the inclusion of additional items
in “ Operating expenses," “ Income before taxes or security gains or
losses" is understated compared with the current operating income
of prior reports. On the other hand, “ Net income" for years prior
to 1969 tends to be somewhat understated because it includes
transfers to bad debt reserves which would generally exceed the
provision for loan losses. Table 114 provides several operating ratios
which afford comparisons between years prior to 1969 and more
recent earnings experience.
Included in the changes in 1969 were the transfer of the tables
“ Income of insured commercial banks . . . by State" and “ Income
of insured mutual savings banks . . . by State", which formerly
appeared in this report, to the Corporation's publication Assets and
Liabilities, Commercial and Mutual Savings Banks.

INCOME

Income data are included fo r all insured banks operating at the
end of the respective years, unless indicated otherwise. In addition,
appropriate adjustments have been made for banks in operation
during part of the year but not at the end of the year.
The Report of Income was revised extensively in 1969. Under
“ Operating income," more detailed breakdowns of investment income
were specified and income from Federal funds transactions was
separated from other loan income. However, the overall contents
of “ Operating income" are not changed significantly from prior
years, the principal changes being the consolidation of subsidiaries
and conversion to accrual accounting.
Under “ Operating expenses," expense of Federal funds trans
actions is broken out as a separate item; in prior years this item was
included under “ Interest on borrowed money." “ Interest on capital
notes and debentures" is included as an operating expense, whereas
in prior years it had not been included as a charge against operating
earnings or net income. “ Provision for loan losses" is included as
an operating expense, beginning in 1969. This item covers actual
loan losses (charge-offs less recoveries), or an average percentage
of loan losses experienced during the previous five years, applied
to average loans outstanding in 1969. Newly organized banks and
others will also be permitted to determine their loan loss ratio
by averaging forward from 1969 or their first year of operation. In
prior years, loan losses fo r most banks (those on a reserve basis)
were not charged against operating income or net income. Instead,
transfers to loan loss reserves were included as a charge against
net income (but not against operating income). Actual losses
charged to loan loss reserves were treated as a memorandum item.
The 1969 report includes applicable income taxes for income
before securities gains or losses. “ Applicable income taxes" is an
estimate of the tax liability that a bank would incur if its taxes were
based solely on operating income and expenses; that is, if there
were no security gains or losses, no extraordinary items, etc.
Beginning in 1969, income from securities gains and losses is
reported in total, gross and after taxes, not as separate gain or loss
items as in prior years. It is included, along with a subtraction for
m inority interest in consolidated subsidiaries, before arriving at net
income (after taxes).

276

Table 113. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1961-1969
(Amounts in thousands of dollars)
1965

1966

1967 1

1968 1

1969 1

11,069,604
7,008,701

12.218.959
7,717,845

13.509.713
8,672,315

15.024.487
9,785,238

16,817.187
11,204,863

19,508.414
13,286,400

21,781.611
14,646,637

25.478.404
17,121,079

30,806.805
20,726,664

Interest on U.S. Treasury securities ........................................................
Interest and dividends on securities of other U.S. Government agencies

1,901,732

2,093,207

2,176,454

2,240,389

2,224,711

2,317,794

2,601,900

3,004,655

811,580
2,845,257

Interest and dividends on other securitie s3..............................................

629,134
502,871
630,458

759,030
543,916
681,243

921,060
573,252
728,857

1,085,334
629,694
781,405

1,285,287
689,628
842,775

1,531,517
756,130
915,049

1,904,886
820,269
987,187

2,376,223
906,206
1,055,964

551,068
2,215,971
134,548
1,021,900
1,120,196

223,283
173,425
7.440.492
2,898,830
377,494
2,106,645

237,446
186,272
8.589.177
3,073,552
419,098
2,845,283

248,362
189,413
9.714.980
3,284,375
457,033
3,464,308

280,289
222,138
10.897.460
3,519,062
490,732
4,088,061

304,276
265,647
12.486.120
3,762,024
525,692
5,070,781

354,036
347,488
14.561.852
4,095,742
598,768
6,259,472

411,021
409,711
16.553.642
4,537,896
667,345
7,379,863

478,028
536,249
19.354.237
5,101,803
755,744
8,681,705

693,578
686,043
24.076.791
5,878,812
903,469
9,789,893

37,997

64,325

106,517

127,277

189,519

301,768

266,476

528,986

510,691
647,715
137,024
224,852

555,670
699,296
143,626
267,885

608,462
760,908
152,446
311,518

670,243
831,158
160,915
362,301

731,573
898,440
166,867
411,889

802,060
980,444
178,384
458,695

873,541
1,059,785
186,244
533,846

970,034
1,173,423
203,389
631,564

1,283,983

1,363,364

1,482,767

1,639,784

1,794,642

2,045,347

2,294,675

2,684,401

3.629.112

3.629,782

3.794.733

4,127,027

4.331,067

4.946.562

5,227,969

6,124,167

Income on Federal funds sold and securities purchased under agree-

Service charges on deposit accounts..........................................................
Other service charges, collection and exchange charges, commissions,
Other operating income.................................................................................
O perating expense— t o t a l4
....................................................
Salaries and wages of officers and employees..........................................
Pensions and other employee benefits.......................................................
1nterest on deposits
.............................................................................
Expense of Federal funds purchased and securities sold under agreemonte tn rpnnrrhacp5
Interest on other borrowed money 5...........................................................
Interest on capital not6s 3nd debentures *
Occupancy expense of bank premises, net ..............................................
Gross occupancy expense
........................................................
Less rental income
......................................................
Furniture and equipment, depreciation, rental costs, servicing, etc........
Prnuicinn fnr Inan fnccPQ *4
Other operating expenses.............................................................................
Incom e before incom e taxes and s e c u ritie s £dins or losses®..........
Maf n ir r a n t n n o ratin o oarninoc fnlri
A n n lira h lo in m m p t a ypc 6
1n m m a hofnro C A ru ritioc oainc nr I hccpc 6
C o n irifio c oainc nr Inccpc npf6
Gross
...................................................................................................
T axes ®
Kl/>f in rnm o hafnro oivtrsnrHin!)r\/ itom c 6
Gross.................................................................................................................

409,440

198,048

117,558

-1 3 ,6 7 4

-4 2 6

-3 9 2 ,4 4 7

- 4 ,3 1 2

-4 3 8 ,5 2 0

1,205,787
433,120
100,742
1,073,339
1,331,926
258,587
773,072
521,064
3,397,493
6,730,014
2,164,419
4,565,595
-2 3 7 ,7 0 7
-512,242
-2 7 4 ,5 3 5
4,327,888
6,914
3,994
- 2 ,9 2 0
235
4,334,567

CORPORATION

1964

INSURANCE

1963

DEPOSIT

1962

FEDERAL

1961

Income item

Recoveries, charge-offs, transfers from reserves, net.
Net income before taxes (old basis).....................................
Total provision for income ta x e s ..........................................

-6 36,73 0
3.401,822
1.406,102

Federal income taxes................................................................
State and local income taxes...................................................

-5 6 7 ,6 5 2
3,260.178
1,256,382

-5 3 2 ,7 4 5
3,379,546
1,226,783

-6 8 1 .5 2 1
3.431.832
1.148.203

1,317,292
88,810

-7 8 6 ,7 4 6
3,543,895
1,029,162

1,159,725
96,657

1,130,629
96,154

-8 3 9 .8 6 9
3.714,246
1.029.906

1,050,624
97,579

-9 0 4 .6 4 5
4.319.012
1.177.154

927,423
101,739

-9 9 2 .6 6 5
4.692.982
1.267.044

911,585
118,321

1,020,988
156,166

1.505,336

1,086,889
180,155

Net income after taxes (old basis).........................................

1,287,514
217,822

1.995.720

2,003,796

2.152.763

2.283,629

2,514,733

2.684.340

3.141.858

3.425.938

895,053

941,189

993,374

1,088.310

893,230
1,823

1,202.349

939,426
1,763

990,039
3,335

1,307.387

1,062,561
25,749

1.426.202

1,146,186
56,163

1.589,114

1,240,048
67,339

1.769.314

1,342,538
83,664

1,488,670
100,444

1,762,279
7,035

73,844
9,911

84,863
4,714

96,897
6,216

157,791
4,515

124,062
4,158

143,859
3,300

168,680
5,638

219,115
1,913

209,124
1,986

249,500
22,463

238,825
16,305

323,475
17,314

394,181
43,683

429,490
25,761

545,647
60,282

601,194
29,072

629,707
32,262

697,874
12,448

256,598,531 276,869,632

516,325,483

Dividends on capital— to ta l 7..............................

Cash dividends declared on common sto ck. ..
Cash dividends declared on preferred stock 7.

Memoranda

Average assets and liabilities 8
Assets— to ta l.........................................................................

Liabilities and capital— to ta l. ..
Total deposits...............................

Demand deposits..........................
Time and savings deposits ........

328,756,207

49,438,670
64,519,914

360.944.351

50,997,566
64,058,431

391.255,121

54,449,343
61,439,390

59,013,596
59,419,551

425.619.337
70,248,679
57,357,584

473.138,013

62,867,398
56,088,649

21,660,321
120,370,317
6,162,547

25,761,084
130,437,964
6,712,000

31,421,875
147,948,743
7,434,673

36,360,062
168,082,284
8,425,128

41,540,772
191,391,533
9,578,899

47,054,812
214,381,628
10,862,634

55,213,293
230,636,149
12,163,632

65,318,374
253,678,319
14,091,489

256,598.531 276,869.632

301.861.288

225,214,703

328.756.207

243,319,550

360.944,351

264,059,489

391,255.121

287,988,560

425.619,337

315,643,533

473.138.013

516.325.483

340,336,714

368,906,501

407,508,260

431,468,339

21,288,937
633,380
13,115

22,703,808
656,153
13,124

13.507.899
24.283.900
648,967
13,291

14,376,273
26,391,374
702,658
13,493

16,479,957
28,820,861
732,163
13,547

20,067,721
30,850,686
777,361
13,541

23,836,162
32,876,674
815,037
13,517

30,297,605
35,332,148
866,725
13,4

46,642,486
38,214,658
904,008
13,473

78,504,024
61,545,807

86,663,384
56,724,083io
58, 01 1,2 00i o
ll,839,130io
283,479,251
19,608,435io

147,556,175 1 53,8 49,494 159,5 61,973 168,3 82,122 1 78,0 89,360 185,3 36,407 194,9 82,924 213,6 28 ,38 9 2 30,4 90,525
7 7,658,528 89,47 0,0 56 1 04 ,5 07,516 119,6 06,438 1 37,5 54,173 1 55,0 00,307 173,9 23,577 193,879,871 200,9 77,814
10,094,841
10,846,274

BANKS

Borrowings and other liabilities.
Total capital accounts.................
Number of employees (end of period ) .
Number of banks (end of perio d)........

301.861.288

46,613,211
61,792,135

OF INSURED

Cash and due from banks..............................................
United States Treasury securities.................................
Obligations of States and political subdivisions 9. ..
Other securities 9.............................................................
Loans and discounts........................................................
All other assets................................................................

INCOME

Recoveries credited to reserves (not included above):
On loans...........................................................................
On securities...................................................................
Losses charged to reserves (not included above):
On loans...........................................................................
On securities...................................................................

1 Figures before 1969 may differ slightly from those published by the Board of Governors of the Federal Reserve System and the Comptroller of the Currency because of differences
in rounding techniques. Revisions in Report of Income in 19d9 are discussed on pp. 274-275; also see notes to tables.
2 “ Income on Federal funds sold" was included in "Interest and discount on loans” in 1968 and prior years (see 1968 report p. 198)
3 income from "Securities of other U.S. Government agencies and corporations" and from "Obligations of States and political subdivisions” were included in income from "O ther securities” in 1968
ana prior years.
4 ‘‘ Interest on capital notes and debentures" and "Provision for loan losses" not included in "Operating expense— total" in 1968 and prior years
5 "Expense of federal funds purchased and securities sold under agreements to repurchase" were included in "Inte rest on borrowed money” in 1968 and prior vears
e Data are not available prior to 1969. See p. 275 of this report.
7 ln
years, “ Dividends declared on preferred stock" was reported in combination with "Interest on capital notes and debentures.”
8
*964-1969 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
been revised* to8a'grossbasis
current year. For 1963, averages of amounts reported at 1962 year-end, 1953 spring, midyear, and year-end calls. 1961-1968 averages of securities and loans have

277

9 In 1968 and prior years, "Obligations of States and political subdivisions" were included in "Other securities.”
i° Securities held in trading accounts are included in "A ll other assets."

1965

1966

1967

1968

1969

$100.00
63.31
17.18

$100.00
63.16
17.13

$100.00
64.19
16.11

$100.00
65.13
14.91

$100.00
66.63
13.23

$100.00
68.11
11.88

$100.00
67.24
11.95

$100.00
67.20
11.79

5.68
4.54
5.70
2.02
1.57

6.21
4.45
5.58
1 94
1.53

6.82
4.24
5 39
1.84
1.41

7.22
4.19
5.20
1.87
1.48

7.64
4.10
5.01
1.81
1.58

7.85
3.88
4.69
1.81
1.78

8.74
3.77
4.53
1.89
1.88

9.33
3.56
4.14
1.88
2.10

$100.00
69.91
9.23
7.19
2.23
3.32
3.64
9 95
L.
CO
2.23

67.22
26.19
3.41
19.03
.34
4.61
2.03

70.29
25.15
3.43
23 28
.53
4 55
2.19

71 91
24.31
3 38
25.64
.79
4.50
2.31

72.53
23.42
3.27
27.21
.85
4.46
2.41

74.25
22.37
3.13
30.15
1.13
4.35
2.45

74.64
20.99
3.07
32.09
1.55
4.11
2.35

76.00
20.83
3.07
33.88
1.22
4.01
2.45

75.96
20.02
2.97
34.07
2.08
3.81
2.48

11.61

11.16

10.98

10.91

10.67

10.48

10.54

10.53

Net c u rre n t ope ra tin g earn in g s (old b a s is )................................................................................

32.78

29.71

28.09

27.47

25.75

25.36

24.00

24.04

A m oun ts per $100 o f to ta l assets
Operating income—to ta l...................................................................................................................
Net current operating earnings (old ba sis)...................................................................................
Income before income taxes and securities gains or losses.......................................................
Net incom e4........................................................................................................................................

4.31
1.41

4.41
1.31

4 48
1.26

4.57
1.26

4.66
1.20

4.99
1.26

5.12
1.23

5.38
1.29

.78

.72

.71

.69

.70

.69

.74

.72

1.30
.84

9.37
4.20
5.17

8.83
4.14
4.68

8.86
4.08
4.77

8.65
4.03
4.53

8.73
3.98
4.56

8.70
4.02
4.46

9.56
4.08
5.22

9.70
4.21
5.20

11.34
4.61
6.71

5.82
3.08

5 92
3.24

5 86
3.40

5.82
3.65

5.85
3.74

6.20
4.13

6.35
4.54

6.75
4.88

7.60
5.02

2.90
.43
2.71

2.95
.44
3.18

2.93
.46
3.31

2.98
.46
3.42

3.09
.47
3.69

3.25
.49
4.04

3.45
.51
4.24

3.64
.49
4.48

3.82
5.79
.49
4.87

13,115

13,124

13,291

13,493

13,547

13,541

13,517

13 488

13 473

O perating expense— t o t a l3...............................................................................................................
Salaries and wages............................................................................................................................
Pensions and other ben efits............................................................................................................
Interest on tim e and savings deposits...........................................................................................
Interest on borrowed m oney3..................................................................................................
Occupancy expense of bank premises, n e t..........................................................................
Furniture and equipment, etc...............................................................................
Provision for loan losses3................................................................................................................
Other operating expenses.................................................................................................................
Incom e before incom e ta xe s and s e c u ritie s gains or lo s s e s ................................................

A m ounts per $100 o f to ta l c a p ita l a ccou nts
Net incom e4........................................................................................................................................
Cash dividends declared on common stock.........................................................................
Net additions to capital from incom e...................................................................................
Special ra tio s
Income on loans per $100 of loans1.............................................................
Income on U.S. Treasury securities per $100 of U.S. Treasury securities..............................
Income on obligations of States and political subdivisions per $100 of obligations of States
and political subdivisions2....................................................................
1ncome on other securities per $100 of other securities2................................................
Service charges per $100 of demand deposits....................................................................
Interest paid per $100 of time and savings deposits.......................................................
Number of banks, December 31....................................................................

78.15
19.08
2.93
31.78
5.65
3.48
9 *51
1.69
11.03
21.85

5.97

1 Includes Federal funds sold.
“ Interes! on State and local government obligations” included in "Interest and dividends on other securities” in 1968 and prior years. Income from securities held in trading accounts is included in
“ Other operating income.
3 “ Interest on capital notes and debentures,” which is included in "Interest on borrowed money” in 1969, and "Provision for loan losses” were not included in "Operating expenses— total” in 1968 and
prior years.
4 Because of changes in the form of reporting by banks, figure in 1969 is not fu lly comparable with those in 1968 and prior years; see table 113 and p. 275.

CORPORATION

1964

INSURANCE

1963

DEPOSIT

1962

FEDERAL

1961

Income item
A m ounts per $100 o f o p e ra tin g incom e
O perating incom e— t o t a l...................................................................................................................
Income on loans 1...............................................................................................................................
Interest on U.S. Treasury securities2............................................................................................
Interest on State and local government obligations2 ................................................................
Interest and dividends on other securitie s2.................................................................................
Trust department income.................................................................................................................
Service charges on deposit accounts..............................................................................................
Other charges, commissions, fees, etc....................................................................
Other operating income....................................................................................................................

278

Table 114. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1961-1969

Table 115. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1969
B A N K S G R O U PE D BY C LASS OF B A N K
(Amounts in thousands of dollars)

Income item

National

Members F.R. System
State

Non
members
F.R. System

Operating
throughout
the year

Total

Operating
less than
fu ll year

6,777,570
4,615,033
176,714
516,895
58,012
492,965
24,436
409,803
176,623
130,489
176,600

5,808,033
3,619,075
161,685
803,660
228,890
420,783
28,521
49,729
284,472
136,302
74,916

30,794,517
20,721,529
808,250
2,843,503
550,147
2,215,860
134,469
1,021,900
1,119,676
693,396
685,787

12,288
5,135
3,330
1,754
921
111
79

O perating expense— t o t a l..............................................................................................................
Salaries and wages of officers and employees...........................................................................
Pensions and other employee benefits........................................................................................
Interest on deposits........................................................................................................................
Expense of Federal funds purchased and securities sold under agreements to repurchase
Interest on other borrowed m oney..............................................................................................
Interest on capital notes and debentures...................................................................................
Occupancy expense of bank premises, n e t.................................................................................
Gross occupancy expense...........................................................................................................
Less rental incom e......................................................................................................................
Furniture and equipment, depreciation, rental costs, servicing, e tc ......................................
Provision for loan losses................................................................................................................
Other operating expenses...................................................................................

24,076,791
5,878,812
903,469
9,789,893
1,205,787
433,120
100,742
1,073,339
1,331,926
258,587
773,072
521,064
3,397,493

14,305,999
3,402,598
529,968
6,036,219
777,062
255,791
56,282
618,849
786,911
168,062
467,453
296,201
1,865,576

5,224,946
1,288,496
219,217
1,850,151
400,133
162,704
32,769
248,405
305,852
57,447
148,056
85,054
789,961

4.545,846
1,187,718
154,284
1,903,523
28,592
14,625
11,691
206,085
239,163
33,078
157,563
139,809
741,956

24,063,228
5,874,615
903,120
9,787,787
1,205,749
432,987
100,742
1,072,221
1,330,723
258,502
772,462
520,720
3,392,825

13,563
4,197
349
2,106
38
133

-1 ,2 7 5

520
182
256

1,118
1,203
85
610
344
4,668

Incom e before incom e ta xe s and s e c u ritie s gains or lo sses.............................................

6,730,014

3,915,203

1,552,624

1.262.187

6,731,289

A p p lica b le incom e ta x e s ................................................................................................................

2,164,419

1,259,107

554,319

350,993

2,164,133

286

Incom e before s e c u ritie s g ains or lo s s e s .................................................................................

4,565,595

2,656,096

998,305

911,194

4,567,156

- 1 .5 6 1

N et s e c u ritie s gains or lo sse s......................................................................................................
Gross.................................................................................................................................... ’ ’ ’ ’ ’ ’ '
Taxes......................................................................................................................................

-2 3 7 ,7 0 7
-5 1 2 ,2 4 2
-2 7 4 ,5 3 5

-1 2 5 .7 1 6
-2 8 1 ,7 7 5
-1 5 6 ,0 5 9

-8 3 ,3 8 7
-1 7 8 ,5 1 6
-9 5 ,1 2 9

-2 8 ,6 0 4
-5 1 ,9 5 1
-2 3 ,3 4 7

-2 3 7 ,7 1 3
-5 1 2 ,2 4 8
-2 7 4 ,5 3 5

6
6

279

BANKS

18.221,202
12,492,556
473,181
1,524,702
264,166
1,302,223
81,591
562,368
659,101
426,787
434,527

OF INSURED

30,806.805
20,726,664
811,580
2,845,257
551,068
2,215,971
134,548
1,021,900
1,120,196
693,578
686,043

INCOME

O perating incom e— t o t a l................................................................................................................
Interest and fees on lo ans.............................................................................................................
Income on Federal funds sold and securities .purchased under agreements to reseil.........
Interest on U.S. Treasury securities.......................................................... .*...............................
Interest and dividends on securities of other U.S. Government agencies and corporations
Interest on obligations of States and political subdivisions....................................................
Interest and dividends on other securities.................................................................................
Trust department income..............................................................................................................
Service charges on deposit accounts...........................................................................................
Other service charges, collection and exchange charges, commissions, and fees................
Other operating income..................................................................................................................

280

Table 115. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1969
BANKS GROUPED BY CLASS OF B A N K -C O N T IN U E D
(Amounts in thousands of dollars)

Total
State

National

Operating
throughout
the year

Operating
less than
fu ll year

4,327,888

2.530.380

914.918

882.590

4.329.443

- 1 .5 5 5

6,914
3 ,9 9 4
— 2, 9 2 0

3.935
1 ,1 9 2
— 2 ,7 4 3

1.549
1, 19 2
— 357

1,430
1,6 1 0
180

6,960
4 ,0 6 1
— 2 ,8 9 9

-4 6
-6 7
-2 1

187

235

2,534.279

916,455

883,833

4,336,168

- 1 ,6 0 1

T o ta l provision fo r incom e ta x e s ................................................................................................................................
Federal income taxes......................................................................................................................................................
State and local income ta xe s........................................................................................................................................

1,505,336
1 ,2 8 7 ,5 1 4
217 ,8 22

830.698
7 1 4 ,7 06
11 5, 992

385.286
3 1 0, 73 9
74 ,5 47

289,352
26 2, 06 9
27 ,2 8 3

1,505.112
1 ,2 8 7 , 2 9 3
21 7, 8 1 9

224
221
3

D ividends on c a p ita l— t o t a l...........................................................................................................................................
Cash dividends declared on common sto c k ................................................................................................................
Cash dividends declared on preferred sto c k ..............................................................................................................

1.769,314
1 ,7 6 2 ,2 7 9
7 ,0 3 5

1.068.095
1 ,0 6 3 , 6 6 6
4, 4 2 9

455,307
45 3 , 1 8 5
2 ,1 2 2

245.912
2 4 5, 42 8
484

1.769.289
1,762,254
7, 0 3 5

25
25

Memoranda
Recoveries credited to reserves (not included above):
On loans............................................................................................................................................................................
On securities.....................................................................................................................................................................
Losses charged to reserves (not included above):
On lo ans............................................................................................................................................................................
On securities.....................................................................................................................................................................

20 9, 12 4
1,98 6

1 35 ,0 94
733

32 ,4 61
373

4 1 ,5 6 9
880

209,124
1 ,9 8 6

697,874
12,4 48

43 6, 28 1
5 ,1 7 3

10 8, 338
808

153 ,2 55
6,4 6 7

697,855
1 2, 4 48

Number of Employees (end of perio d )............................................................................................................................

9 04 ,0 08

52 0 , 0 5 8

183, 441

200,509

9 0 2 ,7 62

1, 24 6

Number of banks (end of p erio d)....................................................................................................................................

13,4 73

4,669

1,201

7, 6 0 3

13 ,3 57

116

Note: The Report of Income was revised extensively in 1969; the changes are outlined on pp. 274-275, and in notes to tables.

CORPORATION

4,334,567

....

INSURANCE

235

N e t in co m e ..........................................................................................................................................................................

Less m in o rity in te re s t in conso lid ated s u b s id ia rie s

DEPOSIT

N et incom e b efore e x tra o rd in a ry ite m s ....................................................................................................................
E x tra o rd in a ry charges or c re d its , n e t........................................................................................................................
Gross............................................................................................................................................. .....................................
Taxes....... ..........................................................................................................................................................................

FEDERAL

Non
members
F.R. System

Members F.R. System
Income item

Table

116. INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1969
AND OTHER AREAS)

IN THE

UNITED STATES (STATES

BAN KS GROUPED BY A M O U N T OF DEPOSITS
(Amounts in thousands of dollars)
Banks with deposits of—
Incom e item

All
banks1

Less
than
$1 million

$1 million
to
$2 million

$2 million
to
$5 million

$5 million
to
$10 million

$10 million
to
$25 million

$25 million $50 million
to
to
$50 million $100 million

$100 million $500 million
to
to
$500 million
$1 billion

$1 billion
or
more

759,260
4 3 9, 35 5

1.595,039
9 4 9 ,6 39

3,199,271
1 ,9 5 5 ,3 8 6

2,522,591
1 ,5 9 5 , 6 6 8

2,223.385
1, 4 3 0 ,0 5 6

5.851,279
3 ,9 1 1 , 7 1 7

2,966,656
2 ,0 6 3 , 0 9 9

11,565,453
8, 3 1 5 ,0 3 9

237
2,64 1

1,8 6 2
2 5, 4 18

20, 1 57
159, 679

54,7 11
27 3, 65 6

112,0 88
4 5 6, 54 8

84 ,1 3 6
2 9 7 ,4 15

60 ,4 4 6
240, 061

139 ,0 96
5 3 0, 68 7

58,031
206, 06 2

277, 486
6 51 ,3 36

934

7 ,2 1 0

4 6, 1 03

73,7 11

120, 150

8 2, 4 99

64 ,1 7 6

83 ,9 2 3

23, 6 42

47 ,7 99

119
116
1
414

2 ,0 7 6
583
4
3 ,8 8 6

3 2, 1 42
3, 5 5 8
495
3 1, 4 26

103 ,8 66
6 ,0 3 0
2 ,4 0 9
79,4 01

25 1, 73 9
15, 32 8
16,8 39
175, 922

2 0 7 ,4 72
9 ,9 1 8
33 ,4 9 7
1 29 ,6 34

196, 023
9 ,2 8 6
43 ,0 9 3
98 ,1 5 4

4 6 8, 32 9
2 9 ,0 1 4
2 1 7, 58 8
23 3, 4 4 7

227,7 17
12,301
147 ,55 5
9 1, 4 8 5

72 6, 377
48 ,3 3 5
560, 419
275 ,90 7

331
130

2 ,8 3 7
1,2 1 4

18,9 25
7,4 2 0

3 5, 9 59
15,6 57

6 2, 8 73
32 ,3 9 8

51 ,6 9 6
30 ,6 5 6

5 2, 2 44
2 9, 8 46

142 ,2 33
9 5 ,2 4 5

8 0, 3 30
5 6, 4 34

2 45 ,9 68
4 16 ,7 87

O perating expense— t o t a l............................................... 24,063.228
Salaries and wages of officers and e m p lo ye es .............. 5 ,8 7 4 ,6 1 5
Pensions and other em ployee be n e fi ts .............................
903 ,1 20
Intere st on dep os its .................................................................... 9 ,7 8 7 ,7 8 7
Expense of Federal funds purchased and securities
sold unde r agreements to re pu rc ha se ..........................
1 ,2 0 5 ,7 4 9
Intere st on other borrowed m o n e y .....................................
432 ,9 87
Intere st on capital notes and d e b e n tu re s ........................
100,742
Occupancy expense of bank premises, n e t .....................
1,07 2, 22 1
Gross occupancy e x p e n s e .................................................... 1, 3 3 0 ,7 2 3
Less rental in c o m e ..................................................................
258, 502
Furniture and equ ipm ent, depreciation, rental costs,
servicing, etc...............................................................................
772,4 62
Provision for loan loss es...........................................................
520,7 20
Other operating e x p e n se s ........................................................
3 ,3 9 2 ,8 2 5

7,987
3,44 1
273
1, 744

77,834
28, 0 26
2, 2 6 9
26 ,5 98

591,289
177, 170
16,7 15
243 ,8 52

1,244,906
33 1, 8 9 8
38 ,4 04
53 6, 6 4 5

2,501,874
625, 611
7 9, 8 59
1 ,1 0 0 ,9 6 2

1,967,457
49 2 , 4 3 0
68 ,7 1 9
8 46 ,0 09

1.754.316
4 35 ,5 32
63,2 11
751 ,1 29

4,508,250
1 ,1 8 2 ,8 6 2
190 ,8 23
1 ,7 2 5 , 1 4 8

2,276,905
570, 09 9
92 ,8 8 9
78 0, 14 9

9,132,410
2 ,0 2 7 ,5 4 6
3 49 ,9 58
3, 7 7 5 ,5 5 1

0
21
0
411
433
22

11
83
18
2 ,8 6 9
3 ,0 6 2
193

285
780
135
22 ,3 3 3
24, 1 26
1,79 3

1,0 82
1,5 87
471
51, 7 95
55 ,5 16
3,72 1

6,1 1 9
5, 10 3
3, 19 9
111, 129
122,2 93
11,1 64

10,261
5, 9 0 2
4 ,3 6 7
92 ,4 6 7
108, 702
16 ,2 35

23 ,8 1 0
10,6 57
5, 2 8 8
83 ,4 13
105, 266
2 1, 8 53

167,661
35,3 61
16 ,9 53
2 1 9, 25 9
290,7 01
71 ,4 42

188 ,6 45
5 3, 2 56
15,361
104,778
143,301
38, 5 23

80 7, 8 7 5
320, 237
54 ,9 50
383 ,7 67
47 7, 323
9 3 ,5 5 6

204
270
1,623

2, 1 6 8
2 ,7 5 6
13, 03 6

17 ,9 14
17,5 40
94 ,5 6 5

40 ,6 1 3
4 3 ,4 8 3
198,9 28

8 4, 2 47
79 ,2 1 8
406 ,4 27

6 9 ,7 1 0
5 6, 6 67
3 2 0 ,9 25

6 6, 7 97
43 ,7 21
2 70 ,7 58

190, 912
9 3 ,3 6 4
6 8 5, 90 7

88, 0 09
39 ,6 96
344, 02 3

211, 888
144,005
1 ,0 5 6 ,6 3 3

6.731,289

2,216

23,546

167,971

350,133

697,397

555,134

469,069

1,343,029

689,751

2,433,043

A p p lica b le income ta x e s .................................................

2.164,133
2,164,133

460

4,831

38,346

88,736

190,737

169,648

138.248

441.734

237,715

853,678

281

Incom e before incom e taxes and s e c u ritie s gains
or lo sse s...........................................................................

BANKS

101,380
5 6, 2 90

OF INSURED

10,203
5 ,2 8 0

INCOME

O perating income— t o t a l................................................. 30.794,517
Inter es t and fees on lo a n s ....................................................... 20 ,7 2 1 ,5 2 9
Income on Federal funds sold and securities pu r
chased under agreements to re s e ll ................................
80 8, 25 0
Intere st on U.S. Treasury secu riti es ..................................
2 ,8 4 3 ,5 0 3
Intere st and dividends on securities of other U.S.
Gover nme nt agencies and corpo ration s........................
550 ,14 7
Inter es t on obligations of States and political sub
di vis ion s .......................................................................................
2 ,2 1 5 ,8 6 0
Interest and dividends on other securities .....................
134,469
T ru st d e pa rt m en t i n c o m e ......................................................... 1 ,0 2 1 ,9 0 0
Service charges on deposit acco unt s.................................. 1 ,1 1 9, 67 6
Oth er service charges, collection and exchange
charges, commissions, and f e e s .......................................
69 3, 39 6
Other operating in c o m e .............................................................
685, 787

116. INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1969
AND OTHER AREAS)—CONTINUED

IN THE

UNITED STATES (STATES

282

Table

BANKS GROUPED BY A M O U N T OF DEPOSITS
(Amounts in thousands of dollars)
Banks with deposits of—
All
banks 1

Less
than
$1 million

$1 million
to
$2 million

$2 million
to
$5 million

$5 million
to
$10 million

$10 million
to
$25 million

$25 million $50 million
to
to
$50 million $100 million

$100 million $500 million
to
to
$500 million
$1 billion

$1 billion
or
more

1.756

18.715

129.625

261.397

506,660

385.486

330,821

901,295

452,036

1,579,365

-2 3 7 .7 1 3
-5 1 2 ,2 4 8
-2 7 4 ,5 3 5

-2 1
-2 5
-4

-5 4 3
-6 4 2
-9 9

-4 ,7 7 5
-6 ,1 7 5
-1 ,4 0 0

-1 0 .1 4 7
-1 5 ,0 7 8
-4 ,9 3 1

-1 4 .7 5 0
-2 6 ,7 5 9
-1 2 ,0 0 9

-1 2 .8 8 5
-2 7 ,3 2 8
-1 4 ,4 4 3

-1 1 ,5 0 1
-2 4 ,8 7 8
-1 3 ,3 7 7

-3 7 ,6 3 0
-8 5 ,1 4 2
-4 7 ,5 1 2

-1 5 ,7 1 1
-3 5 ,1 5 2
-1 9 ,4 4 1

-1 2 9 ,7 5 0
-2 9 1 ,0 6 9
-1 6 1 ,3 1 9

Net incom e before e x tra o rd in a ry ite m s ....................

4.329.443

1.735

18.172

124.850

251.250

491,910

372.601

319,320

863,665

436,325

1.449.615

E xtra o rd in a ry charges or cre d its, n e t........................
Gross...................................................................................
Taxes..................................................................................

6.960
4,061
-2 ,8 9 9

3
5
2

31
25
-6

36
86
50

80
199
119

509
624
115

2,826
2,995
169

653
-2 6 0
-9 1 3

4,101
3,625
-4 7 6

-6 8 7
-2 ,0 7 1
-1 ,3 8 4

-5 9 2
-1 ,1 6 7
-5 7 5

235

156

-1 7

4.336.168

1.738

18,194

124.877

251,303

492,366

375,434

319,968

867,610

435,655

1.449.023

T o ta l provision fo r incom e ta x e s .................................
Federal income taxes.......................................................
State and local income taxes.........................................

1.505.112
1,287,293
217,819

328
300
28

3.872
3,513
359

32,975
30,112
2,863

74,560
68,923
5,637

160.001
147,692
12,309

135.406
124,581
10,825

105.347
96,775
8,572

336,795
305,977
30,818

175,303
155,602
19,701

480,525
353,818
126,707

Dividends on c a p ita l— t o t a l............................................
Cash dividends declared on common stock................
Cash dividends declared on preferred s tock...............

1.769.289
1,762,254
7,035

401
396
5

4.920
4,920
0

31.215
31,200
15

62,072
62,013
59

129.556
129,287
269

112.460
112,282
178

103.649
103,526
123

349,889
349,292
597

198,251
197,400
851

776.876
771,938
4,938

209,124
1,986

40
0

638
10

6,602
60

16,632
196

31,042
199

20,687
355

17,889
210

35,570
678

15,491
278

64,533
0

697,855
12,448

129
1

2,092
42

20,349
141

50,644
494

96,242
1,339

68,820
1,563

59,347
197

136,218
1,214

61,036
5,466

202,978
1,991

Number of employees (end of period)............................

902,762

743

5,138

29,090

54,969

105,119

83,313

72,053

190,812

82,705

278,820

Number of banks (end of period)....................................

13,357

201

1,009

3,457

3,430

3,178

1,095

476

403

Memoranda
Recoveries credited to reserves (not included above):
On loans.............................................................................
On securities.....................................................................
Losses charged to reserves (not included above):
On loans.............................................................................
On securities.....................................................................

1 This group of banks is the same as the group shown in table 115 under the heading “ Operating throughout the year.”

-7

CORPORATION

Less m in o rity in te re s t in conso lid ated su b sid ia rie s
Net in co m e ..........................................................................

INSURANCE

4.567.156

DEPOSIT

Incom e before s e c u ritie s gains or lo sses..................
S e c u ritie s gains or losses, n e t......................................
Gross...................................................................................
Taxes..................................................................................

FEDERAL

Income item

Table 117. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1969 IN THE UNITED STATES (STATES
AND OTHER AREAS)1
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS
Banks with deposits of—
Less
than
$1 million

$1 million
to
$2 million

$2 million
to
$5 million

$5 million
to
$10 million

$10 million
to
$25 m illion

$25 million
to
$50 million

O perating incom e— t o t a l.........................................................................
Income on loans2.....................................................................................
Interest on U.S. Treasury securities3 ................................................
Interest on State and local government obligations3........................
Interest and dividends on other securities3.......................................
Trust department income.......................................................................
Service charges on deposit accounts....................................................
Other charges, commissions, fees, etc..................................................
Other operating incom e3........................................................................

100.00
54.07
25.89
1.17
10.29
.01
4.06
3.24
1.27

100.00
57.36
25.07
2.05
7.69
.00
3.83
2.80
1.20

100.00
60.52
21.03
4.23
6.54
.07
4.14
2.49
.98

100.00
62.97
17.16
6.51
5.00
.15
4.98
2.25
.98

100.00
64.62
14.27
7.87
4.23
.53
5.50
1.97
1.01

100.00
66.59
11.79
8.22
3.66
1.33
5.14
2.05
1.22

100.00
67.04
10.80
8.82
3.30
1.94
4.41
2.35
1.34

100.00
69.23
9.07
8.00
1.93
3.72
3.99
2.43
1.63

100.00
71.50
6.95
7.68
1.21
4.97
3.08
2.71
1.90

100.00
74.29
5.63
6.28
.83
4.85
2.39
2.13
3.60

O perating expense— to ta l .....................................................................
Salaries and wages
..........
......................................................
Pensions and other benefits.
..................................................
Interest on time and savings deposits
............................................
Interest on borrowed money
........................................................
Occupancy expense of bank premises, n e t.........................................
Furniture and equipment, etc.................................................................
Provision for loan losses.........................................................................
Other operating expenses.......................................................................

78.28
33.72
2.67
17.09
.21
4.03
2.00
2.65
15.91

76.77
27.64
2.24
26.23
.11
2.83
2.14
2.72
12.86

77.88
23.33
2.20
32.12
.16
2.94
2.36
2.31
12.46

78.05
20.81
2.41
33.64
.20
3.25
2.55
2.72
12.47

78.20
19.56
2.50
34.41
.45
3.47
2.63
2.48
12.70

77.99
19.52
2.72
33.54
.81
3.67
2.76
2.25
12.72

78.90
19.59
2.84
33.78
1.79
3.75
3.00
1.97
12.18

77.05
20.22
3.26
29.48
3.76
3.75
3.26
1.60
11.72

76.75
19.22
3.13
26.30
8.67
3.53
2.97
1.34
11.59

78.96
17.53
3.03
32.64
10.23
3.32
1.83
1.24
9.14

Incom e before incom e ta xe s and s e c u ritie s g ains or losses..........

21.72

23.23

22.12

21.95

21.80

22.01

21.10

22.95

23.25

21.04

A m oun ts per $100 o f to ta l assets
Operating income— to ta l.............................................................................
Income before income taxes and securities gains or losses................
Net income....................................................................................................

5.62
1.22
.96

5.69
1.32
1.02

5.72
1.26
.94

5.77
1.27
.91

5.85
1.27
.90

5.94
1.31
.88

5.91
1.25
.85

5.97
1.37
.88

5.82
1.35
.85

5.73
1.20
.72

.02

.04
(5)

.05
(5)

.06
(6)

.06
(5)

.05
(6)

.04
(6)

.03
(6)

.03

.12
(5)

.15
(5)

.18
(5)

.18
( 5)

.16
( 5)

.16
5)

.14
( 5)

.12
.01

.10
( 5)

Income item

$50 million $100 million $500 million
to
to
to
$100 million $500 million
$1 billion

$1 billion
or
more

A m oun ts per $100 o f o p e ra tin g incom e

OF INSURED
BANKS
283

.07
00

INCOME

284
Table 117. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1969 IN THE UNITED STATES (STATES
AND OTHER AREAS)’ -CONTINUED
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS

Less
than
$1 million

$1 million
to
$2 million

$2 million
to
$5 million

$5 million
to
$10 million

$10 million
to
$25 million

$25 million
to
$50 million

$50 million $100 million $500 million
to
to
to
$100 million $500 million
$1 billion

$1 billion
or
more

10.30
2.57
7.73

11.24
2.77
8.46

11.85
3.11
8.73

11.95
3.57
8.37

11.50
3.72
7.78

11.75
4.73
7.01

11.20
5.08
6.10

10.02
5.34
4.65

.15

.33
.01

.54
( 5)

.74
.01

.75
( 5)

.66
.01

.64
.01

.48
.01

.40
.01

.45

.47
( 6)

1.09
.02

1.68
.01

2.27
.02

2.32
.03

2.19
.05

2.13
.01

1.84
.02

1.57
.14

1.40
.01

7.24

6.99

6.94

6.99

7.11

7.17

7.22

7.37

7.32

7.38

5.27

5.25

5.37

5.48

5.39

5.41

5.31

5.43

5.31

5.19

Income on obligations of States and political subdivisions per $100
of obligations of States and political subdivisions3...........................
Income on other securities per $100 of other securities3.....................
Service charges per $100 of demand deposits........................................
Interest paid per $100 of time and savings deposits.............................

3.29
6.15
.39
3.74

3.38
5.23
.43
3.96

3.29
5.59
.54
4.05

3.37
5.59
.68
4.09

3.50
5.96
.79
4.16

3.63
6.27
.73
4.26

3.76
6.36
.62
4.39

3.84
6.59
.52
4.46

4.01
6.08
.36
4.83

4.18
5.88
.29
6.56

Number of banks, December 31................................................................

201

1,009

3,457

3,430

3,178

1,095

476

403

Special ra tio s 4
Income on loans per $100 of loans2.........................................................
Income on U.S. Treasury securities per $100 of U.S. Treasury

1 This group of banks is the same as the group shown in table 115 under heading “ Operating throughout the year.”
2 Includes Federal funds.
3 Income from securities held in trading accounts is included in “ Other operating income.”
4 Ratios are based on average assets and liabilities reported at beginning, middle, and end of year.
‘ Less than 0.005.

CORPORATION

9.51
2.57
6.94

INSURANCE

6.34
1.44
4.88

DEPOSIT

Amounts per $100 of total capital accounts
Net income
.............................................................................................
Cash dividends declared on common s to c k .............................................
Net additions to capital from income........................................................

FEDERAL

Banks with deposits of—
Income item

Table 118. INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1961-1969
(Amounts in thousands of dollars)
Income item
C u rre n t ope ra tin g incom e— t o t a l................................................................................
Interest on U.S. Government obligations....................................................................
Interest and dividends on other securities.................................................................
Interest and discount on real estate mortgage loans— n e t......................................

1961
1,595,183
151,931
205,751
1,194,282

Interest and discount on real estate mortgage loans— gross.......................................... 1,231,774
Less: Mortgage servicing fees ................................................................................................
36,045
Premium amortization ................................................................................................
1,447

Interest and discount on other loans and discounts— n e t........................................
Income on real estate other than bank building— n e t..............................................

Income on real estate other than bank building— gross ..................................................
Less: Operating expense .........................................................................................................

18,767
-3 8

379
417

1962

1963

1,755,582
156,410
206,367
1,342,896

1,946,776
153,659
203,720
1,534,446

1,383,735
39,283
1,556
22,733
-5 2

302
354

1,580,276
44,174
1,656
27,576
-1 0 8

296
404

1964
2,164,115
153,368
207,164
1,738,621

1,790,318
49,756
1,941

33,538
-1 2 2

421

543

1965

1966

1967

1968

1969

2,391,753
147,751
211,278
1,950,930

2,606,012
142,509
226,023
2,141,099

2,884,789
130,873
301,218
2,326,459

3,238,735
134,857
417,984
2,538,502

3,581,559
130,111
503,724
2,768,370

41,773
-9 7

53,172
-2 5 5

67,925
-2 0 9

83,807
-4 1 5

121,172
-1 2 6

2,009,214
56,165
2,119
541
638

2,203,133
59,998
2,036

513
768

2,391,848
63,405
1,984

2,605,960
65,426
2,032

767
976

1,664
2,079

2,836,248
67,338
541
2,030
1,904

9,777
17,451

9,984
17,499

13,121
18,425

18,713
21,405

18,095
25,369

25,248
33,275

23,036
40,964

22,114
35,942

C u rre n t o p e ra tin g expense— t o t a l ...............................................................................
Salaries—officers.............................................................................................................
Salaries and wages— other employees........................................................................
Pension, hospitalization and group insurance payments, and other employee
benefits......................................................................................................................
Fees paid to trustees and committee members.........................................................
Occupancy, maintenance, etc., of bank premises (including taxes and recurring
depreciation)— n e t...................................................................................................

241,685
38,158
75,303

252,963
40,466
79,165

274,544
42,792
84,514

290,471
45,391
89,514

311,755
48,514
93,680

334,451
52,085
98,421

353,947
55,510
105,612

389,780
60,161
115,146

442,151
66,937
126,676

24,134
3,994

25,419
4,158

27,202
4,404

28,138
4,604

30,080
4,720

33,593
4,855

34,243
4,945

37,149
5,111

41,860
5,484

Occupancy, maintenance, etc., of bank premises (including taxes and recurring
depreciation)— gross ............................................................................................................
Less: Income from bank building .......................................................................................

27,369

29,269

32,160

34,683

37,219

38,855

42,412

47,184

52,491

37,298
9,929

39,297
10,028

42,583
10,423

45,871
11,188

49,093
11,874

51,387
12,532

55,631
13,219

61,405

17,712
13,799
79,714

19,571
16,414
89,044

67,376
14,885

21,145
19,726
107,831

14,221

12,824
5,438
54,465

12,172
5,997
56,317

12,709
7,714
63,049

14,035
9,182
64,924

15,887
10,262
71,393

16,810
11,777
78,055

Net c u rre n t o p e ra tin g in c o m e ......................................................................................

1,353,498

1,502,619

1,672,232

1,873,644

2,079,998

2,271,561

2,530,842

2,848,955

3,139,408

Franchise and incom e taxes—t o t a l............................................................................
State franchise and income taxes.................................................................................
Federal income taxes......................................................................................................

16,011
15,277
734

17,966
17,502
464

22,587
19,168
3,419

26,022
21,657
4,365

29,487
22,048
7,439

37,480
31,426
6,054

37,708
33,737
3,971

47,710
39,281
8,429

61,874
47,571
14,303

1,337,487

1,484,653

1,649,645

1,847,622

2,050,511

2,234,081

2,493,134

2,801,245

3,077,535

1,147,767

1,334,005

1,481,869

1,653,768

1,809,350

2,087,072

2,395,762

2,612,638

2,808,141

N et c u rre n t o p e ra tin g incom e a fte r taxes and d iv id e n d s ....................................

189,720

150,648

167,776

193,854

241,161

147,009

97,372

188,607

269,394

113,763
17,567

105,907
20,453

113,085
28,678

105,454
18,048

75,130
15,242

177,612
20,211

93,536
20,377

135,049
29,394

104,501
23,743

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

47,292
705
2,059
1,114

77,817
1,351
2,286
2,066

64,809
865
2,555
4,238

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

7,774
13,435
64
716

11,884
9,583
56
612

4,463
3,167
81
573

N o n re c u rrin g incom e, rea lize d p ro fits and recoveries credited to p ro fit
and loss, and tra n s fe rs from v a lu a tio n adju stm e n t provisions—to ta l
Nonrecurring income.......................................................................................................
Realized profits and recoveries on:
Securities sold or m atu red.........................................................................................
Real estate mortgage loans........................................................................................
Other real estate..........................................................................................................
A ll other assets.............................................................................................................
Transfers from valuation adjustment provisions1 on:
Securities.......................................................................................................................
Real estate mortgage loans........................................................................................
Other real estate..........................................................................................................
A ll other assets............................................................................................................

285

Net c u rre n t o p e ra tin g incom e a fte r ta x e s ................................................................
D ividends and in te re s t on d e p o s its ............................................................................

BANKS

Deposit insurance assessments.....................................................................................
Furniture and fixtures (including recurring depreciation)........................................
A ll other current operating expenses..........................................................................

OF INSURED

9,081
15,409

INCOME

Income on other assets..................................................................................................
Income from service operations....................................................................................

Table 118. INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1961-1969
1963

1964

1966

116,143
17,692

109,192
18,941

101,611
17,331

88,234
12,991

93,036
15,306

147,688
10,499

1967

160,669
13,434

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

63,624
4,891
1,850
1,932

64,136
4,488
1,609
3,219

98,959
24,246
2,186
2,608

19,337
35,377
111
744

30,925
25,252
76
450

11,548
21,534
74
503

8,692
22,266
57
673

6,524
17,394
122
716

13,015
11,590
97
597

5,229
3,796
127
837

7,962
5,558
189
836

15,224
3,266
39
704

187,340

147,363

179,250

211,074

223,255

176,933

96,164

222,966

213,225

278
53

1,658
48

3,389
201

756
64

341
85

1,277
212

2,726
231
1
89

391
183
2
116

1,946
154
199
141

7,721
720
5
218

5,830
501
6
448

12,973
5,136
190
178

6,058
765

6,564
841
118
308

6,811
1,220
257
341

2,172
4,040
204
1,016

2,835
1,072
186
353

5,515
1,052
134
562

Average assets and liabilities
Assets— t o ta l....................................................................................................................... 35.916.590
Cash and due from banks..............................................................................................
757,912
United States Government obligations......................................................................... 4,791,909
Other securities................................................................................................................ 5,228,022
Real estate mortgage loans............................................................................................ 24,255,437
Other loans and discounts
353,474
Other real estate
18,955
A ll other assets
510,881

38.152.221
794,362
4,748,691
5,151,555
26,435,337
441,994
19,640
560,642

41.180.616

44.609.410
768,719
4,351,966
5,057,794
33,121,502
588,196

48.466.656
891,727
4,030,731
5,069,343
36,991,670
672,117
27,228
783,840

51.399.898
838,855
3,594,830
5,153,130
40,095,486
842,896
29,263
845,438

55.173.023

786,298

59.674.026
825,767
3,049,815
8,135,834
45,445,434
1,175,629
36,156
1,005,391

63.314.677
715,778
2,702,791
9,334,079
47,971,370
1,462,572
38,345
1,089,742

..................................................
1

Realized losses charged to valuation adjustm ent provisions (not included
in realized losses above) on:
S ecurities...........................................................................................................................
Real estate mortgage loans.............................................................................................
Other real estate...............................................................................................................
A ll other assets.................................................................................................................

...................................................
............................................................
.............................................................
Liabilities and surplus accounts— to ta l .....................................

4,563,328
5,115,637
29,538,513
543,458
21,114

612,268

258

28,389
692,844

953,843
3,156,304
6,312,183
42,794,592
1,003,436
27,987
924,678

Savings and time deposits....................................................................................................
Demand deposits...................................................................................................................

34,350,820

37,175,285

40,334,274

48.466.656
43,985,749

51.399.898
46,590,719

55.173.023

Total deposits................................................................................................................... 32,320,488

50,247,915

59.674.026
54,534,572

63.314.677
57,834,645

32,113,129
207,359

34,070,511
280,309

36,8 70 ,9 0 6
304,379

43,609,062
376,687

4 6,1 72 ,2 4 2
418,477

4 9,805,468
442,447

5 4,053,723
480,849

5 7,304,999
529,646

Other lia b ilitie s .................................................................................................................
Total surplus accounts....................................................................................................

506,744
3,089,358

537,630
3,263,771

588,622

3 9,997,217
337,057

3,416,709

660,037
3,615,099

653,614
3,827,293

764,445
4,044,734

730,825
4,194,283

793,930
4,345,524

888,123
4,591,909

Number of active officers, December 31.............................................................................
Number of other employees, December 3 1 .......................................................................

2,977

3,085
17,617

3,170
18,459

3,281

17,290

18,958

3,423
19,451

3,602
19,609

3,708
20,367

3,899
21,164

4,178
21,927

Number of banks, December 31...........................................................................................

330

331

330

327

329

332

333

334

331

35.916.590 38.152.221 41.180.616 44.609.410

1 Includes “ Valuation reserves” and "Other asset valuation provisions (direct write-downs).”

2 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.

CORPORATION

100,690
12,693

1965

INSURANCE

94,744
12,458

Memoranda
Recoveries credited to valuation adjustm ent provisions (not included in
recoveries above) on:
S ecurities...........................................................................................................................
Real estate mortgage loans
Other real estate .............................................................................................................
A ll other assets.................................................................................................................

1962

DEPOSIT

1969

Net additions to total surplus accounts from operations....................................

1961

FEDERAL

1968

Nonrecurring expenses, realized losses charged to profit and loss, and
transfers to valuation adjustm ent provisions— to ta l....................................
Nonrecurring expenses...................................................................................................
Realized losses on:
Securities s o ld ...............................................................................................................
Real estate mortgage loans.........................................................................................
Other real estate...........................................................................................................
A ll other assets.................... ........................................................................................
Transfers to valuation adjustment provisions1 on:
Securities.......................................................................................................................
Real estate mortgage loans.........................................................................................
Other real estate...........................................................................................................
A ll other assets.............................................................................................................

286

(Amounts in thousands of dollars)—CONTINUED
Income item

Table 119. RATIOS OF INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),
1961-1969
Income item

1961

A m ounts per $100 o f c u rre n t ope ratin g incom e
C u rre n t o p e ra tin g incom e— t o t a l ..................................................................................................................
$100.00
Interest on U.S. Government obligations......................................................................................................
9.52
Interest and dividends on other securities...................................................................................................
12.90
Interest and discount on real estate mortgage loans— n e t........................................................................
74.87
Interest and discount on other loans and discounts— ne t.........................................................................
1.18
Income on other assets......................................................................................................................................
.57
Income from service operations.....................................................................................................................
.96

1966

1967

1968

1969

1962

1963

1964

1965

$100.00
8.91
11.76
76.49
1.29
.56
.99

$100.00
7.89
10.46
78.82
1.42
.51
.90

$100.00
7.09
9.57
80.34
1.55
.60
.85

$100.00
6.18
9.83
81.57
1.75
.78
.89

$100.00
5.47
8.67
82.16
2.04
.69
.97

$100.00
4.54
10.44
80.65
2.35
.87
1.15

$100.00
4.16
12.90
78.38
2.59
.71
1.26

$100.00
3.63
14.07
77.30
3.38
.62
1.00

14.41
2.30
4.51
1.45
.24
1.67
.69
.34
3.21

14.10
2.20
4.34
1.40
.23
1.65
.65
.39
3.24

13.42
2.10
4.14
1.30
.21
1.60
.65
.42
3.00

13.03
2.03
3.92
1.26
.20
1.55
.66
.43
2.98

12.83
2.00
3.78
1.29
.19
1.49
.64
.45
2.99

12.27
1.93
3.66
1.19
.17
1.47
.61
.48
2.76

12.04
1.86
3.55
1.15
.16
1.46
.60
.51
2.75

12.35
1.87
3.54
1.17
.15
1.47
.59
.55
3.01

N e t c u rre n t o p e ra tin g in c o m e ........................................................................................................................

84.85

85.59

85.90

85.58

86.97

87.17

87.73

87.96

87.65

Franchise and incom e taxes— t o t a l ..............................................................................................................
State franchise and income taxes..................................................................................................................
Federal income taxes........................................................................................................................................

1.00
.96
.04

1.02
1.00
.02

1.16
.98
.18

1.20
1.00
.20

1.24
.93
.31

1.44
1.21
.23

1.31
1.17
.14

1.47
1.21
.26

1.73
1.33
.40

83.85

84.57

84.74

85.38

85.73

86.42

86.49

85.92

Divide nds and in te re s t on d e p o s its ................................................................................................................

71.95

75.99

76.12

76.42

75.65

80.09

83.04

80.67

78.40

N et c u rre n t o p e ra tin g incom e a fte r ta xe s and d iv id e n d s .....................................................................

11.90

8.58

8.62

8.96

10.08

5.64

3.38

5.82

7.52

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

5.23
.64
4.39
.07
4.52
4.34
.18

5.42
.65
4.77
.08
4.69
4.37
.32

5.66
.70
4.96
.10
4.86
4.44
.42

A m oun ts per $100 of to ta l assets2
Current operating income—to ta l........................................................................................................................
Current operating expenses— to ta l.....................................................................................................................
Net current operating income...............................................................................................................................
Franchise and income taxes—to ta l....................................................................................................................
Net current operating income after taxes.........................................................................................................
Dividends and interest on deposits.....................................................................................................................
Net current operating income after taxes and dividends...............................................................................
Nonrecurring income, realized profits and recoveries credited to profit and loss, and transfers from
valuation adjustment provisions—to ta l1........................................................................... ........................
Nonrecurring expenses, realized losses charged to profit and loss, and transfers to valuation adjust
ment provisions— to ta l1....................................................................................................................................
Net additions to total surplus accounts from operations.................................................................................

.28

.27

.24

.15

.34

.16

.22

.17

.28
.39

.24
.44

.20
.47

.19
.46

.29
.34

.17
.17

.17
.37

.25
.34

Special ra tio s 2
Interest on U.S. Government obligations per $100 of U.S. Government obligations..................................
Interest and dividends on other securities per $100 of other securities.......................................................
Interest and discount on real estate mortgage loans per $100 of real estate mortgage loans...................
Interest and discount on other loans and discounts per $100 of other loans and discounts......................
Dividends and interest on deposits per $100 of savings and time deposits.................................................
Net additions to total surplus accounts from operations per $100 of total surplus accounts.....................

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

4.15
4.77
5.44
6.77
4.81
2.29

4.42
5.14
5.59
7.13
4.83
5.13

4.81
5.40
5.77
8.28
4.90
4.64

Number of banks, December 31...........................................................................................................................

330

331

330

327

329

332

333

334

331

Note: For footnotes to this table, see table 118, p. 286.

287

.31
.32
.52

BANKS

N e t c u rre n t o p e ra tin g incom e a fte r ta x e s ...................................................................................................

OF INSURED

15.15
2.39
4.72
1.51
.25
1.72
.80
.34
3.42

INCOME

C u rre n t o p e ra tin g expenses— t o t a l...............................................................................................................
Salaries—officers....................... .....................................................................................................................
Salaries and wages—other employees..........................................................................................................
Pension, hospitalization and group insurance payments, and other employee benefits........................
Fees paid to trustees and committee members...........................................................................................
Occupancy, maintenance, etc., of bank premises (includingtaxesand recurring depreciation)— n e t...
Deposit insurance assessments........................................................................................................................
Furniture and fixtures (including recurring depreciation).........................................................................
A ll other current operating expenses............................................................................................................

288

CORPORATION

Table 123.

INSURANCE

Table 122.

DEPOSIT

Table 121.

FEDERAL

Table 120.

BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES;
DEPOSIT INSURANCE DISBURSEMENTS
Number and deposits of banks closed because of financial difficulties,
1934-1969
Insured banks requiring disbursements by the Federal Deposit Insurance
Corporation during 1969
Depositors, deposits, and disbursements in insured banks requiring disburse
ments by the Federal Deposit Insurance Corporation, 1934-1969
Banks grouped by class of bank, year of deposit payoff or deposit assum p
tion, amount of deposits, and State
Recoveries and losses by the Federal Deposit Insurance Corporation on principal
disbursements for protection of depositors, 1934-1969

BANKS
CLOSED
Insured banks: books of bank at date of closing; and books of
FDIC, December 31, 1969.

DISBURSEMENTS
289

Sources of data

INSURANCE

No noninsured bank failed in 1969.
For detailed data regarding noninsured banks which suspended
in the years 1934-1962, see the Annual Report for 1963, pp.
27-41. For 1963-1968, see Table 120 of this report, and previous
reports for respective years.

DEPOSIT

Noninsured bank failures

Disbursements by the Federal Deposit Insurance Corporation to
protect depositors are made when the insured deposits of banks in
financial difficulties are paid off, or when the deposits of a failing
bank are assumed by another insured bank with the financial aid of
the Corporation. In deposit payoff cases, the disbursement is the
amount paid by the Corporation on insured deposits. In deposit
assumption cases, the principal disbursement is the amount loaned
to failing banks, or the price paid for assets purchased from them;
additional disbursements are made in those cases as advances for
protection of assets in process of liquidation and for liquidation
expenses.

AND

Deposit insurance disbursements

Table 120. NUMBER AND DEPOSITS OF BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES, 1934-1969
Deposits (in thousands of dollars)
Insured
Year
Total

Non
insured1

Total

9
26
69
76
73
60
43
14
20
5
2
1
1
5
3
5
4
2
3
4
2
5
2
2
4
3
1
5
1
2
7
5
7
4
3
9

1
1
4
1
3
1
1
2
1
1
5
1
4
2
1
4
1

8
1
2

479
9
25
69
74
73
60
43
14
20
5
2
1
1
5
3
4
4
2
3
2
2
5
2
1
4
3
1
5

1
2
7
5
7
4
3
9

Total

With
disbursements
by FDIC3

61,973

908,700

41,147

867,553

35,364
583
592
528
1,038
2,439
358
79
355

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
10,878
22,524
40,120

970,673
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
10,878
22,524
40,120

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

85
328

1,190

26,449

10,084

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
23,444
23,438
43,861
103,523
10,878
22,524
40,120

1 For information 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, page 179 of the report for
1965, and page 183 of the 1966 report. One noninsured bank placed in receivership in 1934, with no deposits at time of closing, is omitted (see table 22, note 9). Deposits are unavailable for 7 banks.
2 For information regarding these cases, see table 23 of the Annual Report for 1963.
3 For information 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 reports. Deposits are ad
justed as of December 31, 1969, and exclude deposits for three cases requiring disbursements by the Corporation; 1 bank in voluntary liquidation in 1937 (payoff case 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); and 1 foreign-owned bank closed in 1941 by order of the Federal Govern
ment (payoff case no. 234).

CORPORATION

487

52
6
3
7
7
12
5
2
3

Total

Without
disbursements
by FDIC2

Non
insured1

INSURANCE

131

61
32
72
83
80
72
48
16
23
5
2
1
2
6
3
9
5
5
4
5
4
5
3
3
9
3
2
9
3
2
8
9
8
4
3
9

Insured
With
disbursements
by FDIC3

DEPOSIT

618

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................................
1967................................
1968................................
1969................................

Without
disbursements
by FDIC2

FEDERAL

T o ta l..............................

290

Number

Number of
depositors or
accounts1

Citizens State Bank,
Alvarado, Texas

2,329

285

The First State Bank,
Dodson, Texas

286

The State National Bank,
Lovelady, Texas

287

Date of closing or
deposit assumption

First payment to
depositors or
disbursement by
FDIC

FDIC
disbursement2

Receiver or liquidating agent
or assuming bank

AND

Deposit
payoff
284

Name and location

Federal Deposit Insurance Corporation

686

May 12, 1969

May 14,1969

1,028,355

Federal Deposit Insurance Corporation

2,030

May 28,1969

June 2,1969

3,182,920

Federal Deposit Insurance Corporation

First National Bank of Ursa,
Ursa, Illinois

1,479

August 20, 1969

August 25, 1969

1,529,600

Federal Deposit Insurance Corporation

The Rocky Mountain Bank,
Lakewood, Colorado

6,716

February 6, 1969

3,542,649

Lakewood Colorado National Bank,
Lakewood, Colorado

195

The Morrice State Bank,
Morrice, Michigan

1,759

May 6, 1969

1,444,864

Owosso Savings Bank,
Owosso, Michigan

196

The Big Lake State Bank,
Big Lake, Texas

2,642

August 22, 1969

September 2, 1969

2,400,486

Reagan State Bank,
Big Lake, Texas

197

The First State Bank,
Aransas Pass, Texas

6,459

September 5,1969

September 8,1969

7,926,882

First State Bank,
Aransas Pass, Texas

198

The First National Bank of Coalville,
Coalville, Utah

3,254

October 10,1969

October 10, 1969

3,237,084

First National Bank of Coalville,
Coalville, Utah

291

DISBURSEMENTS

$1,910,9103

INSURANCE

April 18, 1969

DEPOSIT

April 12, 1969

Deposit
assumption
194

CLOSED

Class of
bank

Case
number

BANKS

Table 121. INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1969

292
Table 121. INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1969

-CONTINUED

Case
number

U.S. Govern
ment
obligations

Other
securities

Loans,
discounts,
and
overdrafts

Banking
house,
furniture &
fixtures

Other
real
estate

Other
assets

Total
Deposits

Other
liabilities

Capital
stock

Other
capital
accounts

415,096

530,000

40,000

1,234,972

27,936

3,220

305,132

2,556,357

2,319,6093

50,000

285

155,397

77,000

3,000

879,339

13,846

4,291

869

1,133,742

1,085,170

50,000

- 1 ,4 2 7

186,748

774,699

270,972

9,500

2,886,477

119,563

30,658

43,736

4,135,606

3,801,632

98,122

75,000

287

214,280

259,830

115,936

1,434,953

24,490

1,600

2,252

2,053,340

1,798,254

130,000

75,000

50,087

703,112

3,401,168

238,621

3,755,554

199,120

275,000

44,586

8,617,160

8,064,894

42,216

300,000

210,051

195

296,984

371,184

8,134

1,560,886

26,760

9,600

9,490

2,283,039

2,167,450

2,302

50,000

63,287

196

823,390

676,047

368,650

2,794,756

39,114

25,613

22,410

4,749,981

4,426,539

50,370

180,000

93,071

Deposit
assumption
194

197

715,199

882,888

820,574

8,735,462

162,709

12,818

87,411

11,417,060

10,471,897

16,664

150,000

778,498

198

541,791

702,685

630,952

4,640,469

18,047

3,900

87,388

6,625,232

5,991,999

160,000

50,000

423,234

1 Figures as determined by FDIC agents after adjustment of books of the bank immediately following its closing.
* Includes disbursements made to December 31, 1969, plus additional disbursements estimated to be required in these cases.
* Includes $17 591 representing 15 nonbook shortage accounts which w ill be added to book figures when paid.

CORPORATION

286

160,851

INSURANCE

Deposit
payoff
284

DEPOSIT

Cash and
due from
banks

FEDERAL

Liabilities and ca pital accounts1

Assets1

Table 122. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN INSURED BANKS REQUIRING DISBURSEMENTS BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, 1 9 3 4 -1 9 6 9
BAN KS GROUPED BY C LASS OF BANK, YEAR OF DEPOSIT PAYOFF OR DEPOSIT A S S U M P TIO N , A M O U N T OF DEPOSITS, AN D STATE
Number of banks

Total

Assump
tion
cases

Payoff
cases

Total

Payoff
cases

Assump
tion
cases

Deposits1
(in thousands of dollars)

Disbursements by FDIC1
(in thousands of dollars)
Advances and
expenses2

Principal disbursements
Payoff
cases

Assump
tion
cases

Total

Payoff
cases3

Assump
tion
cases4

Payoff
cases5

Assump
tion
cases8

878,888

254,994

623,894

418,970

171,315

247,655

3,200

50,666

89
27
366

32
10
242

57
17
124

347,522
376,257
949,031

87,717
88,892
331,922

207,362
197,673
473,853

86,210
34,388
134,397

121,152
163,286
339,456

101,196
108,179
209,595

43,006
26,498
101,811

58,190
81,681
107,784

1,031
245
1,924

7,098
19,326
24,242

Y e a r7
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 ...................................................................
1963 ...................................................................
1964
...............................................................
1965....................................................................
1966....................................................................
1967
...............................................................
1968 ...................................................................
1969....................................................................

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
4
3
9

9
24
42
50
50
32
19
8
6
4
1

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
4,729
12,850
27,363

1.5,767
32,331
43,225
74,148
44,288
90,169
20,667
38,594
5,717
16,917
899

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
10,878
22,524
40,120

1,968
9,091
11,241
14,960
10,296
32,738
5,657
14,730
1,816
6,637
456

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
3,458
1 031
3,026
1,835
4,765
6,200
19,232
13,768
11,391
15,075
8,125
5,284
36,992

941
6,026
8,056
12,045
9,092
26,196
4,895
12,278
1,612
5,500
404

4
1
1
3
3
1
5
2
7
3
1
4
4

1
27
25
24
28
24
7
14
1
1
1
1
5
3
4
4
2
3
2
2
1
1
1

2
6
3
5

8,080
5,465
2,338
4,380
3,073
11,171
8,301
36,430
19,934
14,363
1,012
4,729
6,533

259,805
287,365
617,109

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

1,454
94,412
12,850
20,830

6,503
4,702
1 163
4,156
2,593
6,930
8,936
23,444
23 438
42,889
774
10,878
8,998

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

972
102,749
22,524
31,122

4,438
2,795
1 031
2,796
1,835
4,765
6,200
19,232
13 768
10,918
735
8,125
7,634

43
108
67
103
93
162
89
50
38
53
9

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 01 7
’ 913
2,346
663

106
87
20
38
51
82
154
292
583
601
25
199

230

473
14,340
5 284
29,358

147

272
934
905
4,902
17,603
17,237
1,479
1,076
72
37
96
11
370
200
166
524
127
195
428
145
665
51
31

120
1,041
468
1,509

293

508,531 1,164,279

DISBURSEMENTS

198 1,672,810

INSURANCE

284

DEPOSIT

482

Class of bank
N ational.............................................................
State member F.R.S.........................................
Nonmember F.R.S............................................

AND

A ll b a n ks ..............................................................

CLOSED

Total

BANKS

Classification

Number of depositors1

294

Table 122. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN INSURED BANKS REQUIRING DISBURSEMENTS BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, 1 9 3 4 -1 9 6 9 — CONTINUED
B A N K S GROUPED BY C LASS OF B AN K, YEAR OF DEPOSIT PAYOFF OR DEPOSIT A S S U M P TIO N , A M O U N T OF DEPOSITS, A N D STATE
Number of banks

Assump
tion
cases

Payoff
cases

Total

Payoff
cases

Assump
tion
cases

Deposits1
(in thousands of dollars)

Disbursements by FDIC1
(in thousands of dollars)
Principal disbursements

Total

Payoff
cases

Assump
tion
cases

Total

Payoff
cases3

Assump
tion
cases4

Advances and
expenses2
Payoff
cases5

Assump
tion
cases8

24
23
25
36
36
28
16
5
4
1

38,347
83,370
92,179
159,587
208,412
272,698
237,677
212,687
284,809
83,044

29,695
65,512
57,287
73,495
68,928
79,279
32,665
89,189
12,481

8,652
17,858
34,892
86,092
139,484
193,419
205,012
123,498
272,328
83,044

6,418
17,759
22,315
53,285
73,668
147,150
130,013
135,727
199,594
92,960

4,947
13,920
12,921
25,681
25,094
55,112
27,715
49,429
40,176

1,471
3,839
9,394
27,604
48,574
92,038
102,298
86,297
159,418
92,960

5,000
12,906
15,615
34,981
41,840
81,732
52,029
69,712
95,153
10,000

4,309
11,554
10,549
19,886
19,641
38,454
17,818
39,444
9,660

691
1,352
5,066
15,095
22,199
43,278
34,211
30,268
85,493
10,000

88
209
164
396
405
635
442
327
532

154
173
611
2,325
3,645
6,126
6,230
6,080
25,039
279

State
Alabam a.............................................................
Arkansas............................................................
C a lifornia...........................................................
Colorado.............................................................
Connecticut.....................................................

4
7
4
4
2

2
6
3
2
2

2
1
1
2

9,170
5,446
21,059
8,810
5,379

2,059
4,541
17,890
1,382
5,379

7,111
905
3,169
7,428

6,170
2,538
47,298
11,052
1,526

3,985
1,942
46,220
2,262
1,526

2,185
596
1,078
8,790

3,557
1,720
25,607
4,448
1,242

2,562
1,576
12,906
938
1,242

995
144
12,701
3,510

72
43
627
40
8

91
48
454
644

Florida................................................................
Georgia...............................................................
Idaho..................................................................
Illin o is ................................................................
India na...............................................................

5
10
2
21
20

2
8
2
9
15

3
2

14,082
9,410
2,451
81,193
30,006

1,725
8,797
2,451
43,274
12,549

12,357
613

17,665
1,959
1,894
52,564
13,593

2,668
1,870
1,894
26,880
3,932

14,997
89

6,163
1,620
1,493
29,986
6,197

2,145
1,551
1,493
22,004
3,096

4,018
69

57
33
29
350
39

466
33

Io w a ....................................................................
Kansas...............................................................
Kentucky...........................................................
..........................................
Louisiana
Maine
. ..
..........................

7
10
23
3
1

4
6
18
3

3
4
5

16,055
6,715
36,139
6 087
9,710

4,066
3,824
18,490
6,087

11,989
2,891
17,649

9,401
5,052
8,888
1 652
5,450

4,383
4,357
3,953
1,652

3,875
4,093
5,455
668
2,346

2,804
3,601
3,329
668

1,071
492
2,126

46
50
44
10

113
72
201

M aryland...........................................................
Massachusetts..................................................
M ichigan............................................................
Minnesota
..................................................
Mississippi .....................................................

5
2
11
5
3

3
2
7

22,567
9,046
117,622
2,650
1,651

6,643

15,924
9,046
115,538

4,566
3,019
109,894
818
334

828

3,109
1,564
18,871
640
257

735

371
1,030
1,093

12
5

4
5
3

37,919
17,457

9,710

2,084
2,650
1,651

25,684
9,662
5,018
694
4,934
5,450

1,394
818
334

3,738
3,019
108,499

7,982
3,101

665

2,346

1,311
640
257

2,374
1,564
17,560

791
384

43
17
5

CORPORATION

83
86
37
34
19
17
4
3
1

INSURANCE

107
109
62
70
55
45
20
8
5
1

DEPOSIT

Banks w ith dep osits o f—
Less than $100,000...........................................
$100,000 to $250,000........................................
$250,000 to $500,0008......................................
$500,000 to $1,000,0008 ..................................
$1,000,000 to $2,000,0008................................
$2,000,000 to $5,000,0008...............................
$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...........................

FEDERAL

Classification

Number of depositors1

Oregon...............
Pennsylvania. . .
South Carolina.
South D a kota...
Tennessee.........
29

269,621
10,408
14,103
13,751
27,650

28,440
3,677
6,760
7,585
20,149

241,181
6,731
7,343
6,166
7,501

3,439
166,894
1,848
12,515
12,358

1,230
43,828
403
11,412
9,993

59,125
3,254
11,057
35,715
4,179

40,909

8,346
26,898
3,212

8,346
18,739

8,687
12,638

7,240
215
8,145

3.867
880

33,128

296
161,502

7,676
639
5,008
117
82,125

145,439
3,266
3,830
7,223
18,920

13,286
1,421
1,552
2,345
11,053

132,153
1,845
2,278
4,877
7.867

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

18,216
3,254
2,370
23,077
4,179

52,817
5,992
3,725
17,778
1,538

26,384

8,159
3,212

2,006
9,512
2,033

' 3,375
7,652
2,006
5,966

6,009
186
5,008

305

1,667
453

26,468

117
55,657

161

20,154

67,997
2,387
2,656
2,098
10,275

10,836
1,156
1,397
1,610
7,936

57,161
1,231
1,259
488
2,339

32
23
24
7
178

10,847
179
203
44
233

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

81
9,524

26,432
5,992
350
10,127
1,538

33,150
3,212
3,445
8,285
935

19,344

13,806
3,212
186
4,396
935

1,458
7,188

1,458
5,096

3,545
2,033

202

3,259
3,889

2,092

202

9
25
580

1,028
52

294

505
512
428
19

Note: Due to rounding differences, components may not add to totals.

295

DISBURSEMENTS

1 Adjusted to December 31,1969, in assumption cases, number of depositors refers to number of deposit accounts.
2 Excludes $352 thousand of nonrecoverable 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 $47,992 thousand, all of which have been fu lly recovered by the Corporation, and $611 thousand of nonrecoverable 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.
8 Figures have been revised since publication in 1968 Annual Report.

INSURANCE

West V irg in ia .
W isconsin.. . .
Wyoming.......

103,797

1,780
418,766

11,107
1,095
8,145
296
194,630

DEPOSIT

Texas.............
U tah...............
Verm ont........
V irg in ia ..........
W ashington...

11,799
651

AND

New Y o rk..........
North Carolina.
North D a kota ..
O hio..................
Oklahoma........

29,478
849
6,069

CLOSED

41,277
1,500
6,069
1,780
522,563

BANKS

M issouri..............
M ontana..............
Nebraska............
New Hampshire.
New Jersey.........

Table 123. RECOVERIES AND LOSSES BY THE FEDERAL DEPOSIT INSURANCE CORPORATION ON PRINCIPAL
DISBURSEMENTS FOR PROTECTION OF DEPOSITORS, 1934-1969
(Amounts in thousands of dollars)
All cases

year of de
posit payoff
or deposit
assumption

Re
coveries
Principal
to Dec.
disburse
ments: - 31,1969

Number
of
banks

Deposit assumption cases

Deposit payoff cases
Estimated
additional
recoveries

Losses1

Number
of
banks

Principal
disburse
ments2

Re
coveries
to Dec.
31,1969

296

Liquidation

Estimated
additional
recoveries

Losses1

Number
of
banks

Principal
disburse
ments3

Re
coveries
to Dec.
31,1969

Estimated
additional
recoveries

Losses1

284

171,314

134,571

9,137

27,609

198

247,654

210,500

13,083

24,069

45
437

159,475
259,494

111,502
233,569

22,220

25,752
25,926

24
260

66,254
105,060

44,559
90,012

9,137

12,560
15,049

21
177

93,221
154,434

66,943
143,557

13,083

13,192
10,877

Year4
1934
1935
1936
1937
1938

9
25
69
75
74

941
8,891
14,781
19,161
30,479

734
6,202
12,325
15,610
28,055

207
2,683
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

207
1,751
1,460
2,524
1,184

1
27
25
24

2,865
6,725
7,116
21,387

1,928
5,730
6,090
20,147

932
995
1,025
1,241

1939
1940
1941
1942
1943

60
43
15
20
5

67,770
74,134
23,880
10,825
7,172

60,618
70,336
23,290
10,136
7,048

7,153
3,787
591
688
123

32
19
8
6
4

26,196
4,895
12,278
1,612
5,500

20,399
4,313
12,065
1,320
5,376

5,798
582
213
292
123

28
24
7
14
1

41,574
69,239
11,602
9,213
1,672

40,219
66,023
11,225
8,816
1,672

1944
1945
1946
1947
1948

2
1
1
5
3

1,503
1,768
265
1 724
2,990

1,462
1,768
265
1,644
2,349

404
1

363

1
1
5
3

1,099
1,768
265
1,724
2,990

1,099
1,768
265
1,644
2,349

1949
1950
1951
1952
1953

4
4
2
3
2

2,552
3 986
1*885
1,369
5,017

2,183
2 601
1,885
577
5,017

4
4
2
3
2

2,552
3,986
1,885
1,369
5,017

2,183
2,601
1,885
577
5,017

369
1,385

1954
1955
1956
1957
1958

2
5
2
1
4

913
6,784
3 458
1,031
3,026

654
6,554
3,163
1,031
2,998

2
1
1

913
2,346
663

654
2,346
663

258

230
240
28

230

1959
1960
1961
1963
1964

3
1
5
2
7

1,835
4,765
6,200
19,232
13,765

1,738
4,765
4,65?
17,143
11,161

26
1,389
609

1,523
700
1,996

196 5
196 6
1967
1968
1969..............

5
7
4
3
9

11,391
15,075
8,125
5,284
36,992

5,842
3,759
5,431
3,794
18,277

321
2,829
1,158
941
14,864

5,229
8,486
1,535
550
3,850

2
6

473
14,340

305
3,148

3
2,725

164
8,466

5,284
5

29,358

3,794
18,122

941
9,385

550
1,850

67
641
369
1,385
792

258
230
240
28
97

4
1
1
3

4,438
2,795
1,031
2,796

4,208
2,500
1,031
2,768

3
1
5
2
7

1,835
4,765
6,200
19,232
13,765

1,738
4,765
4,652
17,143
11,161

26
1,389
609

1,523
700
1,996

3
1
4

10,918
735
8,125

5,537
611
5,431

318
104
1,158

7,634

155

5,479

5,065
20
1,535
3
2,000

1.355
3,205
378
396

67
641

792

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.
4 No case in 1962 required disbursements.
Note: Due to rounding differences, components may not add to totals.

CORPORATION

51,678

INSURANCE

22,220

482l

DEPOSIT

1 345,071

Status
Active...............

FEDERAL

~"418,958

T o ta l................

299
INDEX
Absorptions:
Of insured banks requiring disbursements by FDIC. See
Banks in financial difficulties.
Of operating banks, 1969 .......................................................... 15-17, 291-292
Of operating banks approved by FDIC, 1969 ........................... 15-17, 31-136
Regulation of ................................................................................................. 15-16
Admission of banks to insurance. See also Applications from banks:
Applications for, 1969 ........................................................................................ 15
Number of banks admitted, by class of bank, 1969 ........................... 238-239
Advertising of interest paid on deposits................................................................. 28-29
Applications from b a n k s ........................................................................................ 15-16
Areas outside continental United States, banks and branches located in:
Number, December 31, 1969 ...................................................... 241, 242, 250
Assessments for deposit insurance ................................................................... 23-25
Assets and liabilities of F D IC ..................................................................................... 22
Assets, liabilities, and capital of banks. See also Deposits:
Commercial banks:
Grouped by insurance status,
June 30, 1969, and December 31, 1969 .................................. 254-261
Developments in 1969 ............................................................................ 3-5
Sources of d a t a ........................................................................................ 253
Insured commercial banks:
Amounts, December call dates, 1961, 1965-1969 . . . .
. . 264-266
Amounts, June 30, 1969, and December 31, 1969,
by class of b a n k .......................................................................... 254-261
Major categories, average, 1961-1969 ................................................. 277
Percentage distribution, by size of bank, 1969 ......................... 271-273
Percentages of items, by size of bank, 1969 ....................................
269
Mutual savings banks:
Grouped by insurance status, June 30, 1969, and December
31, 1969 ........................................................................................ 262-263
Developments in 1969 ................................................................................. 5
Sources of d a t a ........................................................................................ 253
Insured mutual savings banks:
Amount, December call dates, 1961, 1965-1969 .................... 267-268
Major catagories, average, 1961-1969 ........................................ 285-286
Percentages of items, by size of bank, 1969 .................................... 270
Assets purchased by FDIC from banks in financial d iffic u ltie s .................... 11-13
Assumption of deposits of insured banks with financial aid of FDIC.
See also Banks in financial d iffic u ltie s ...........................11-13, 291-292, 293-295
Attorney General of the United States, summary
reports on a b s o rp tio n s ................................................................................... 31-136
Audit of F D IC ................................................................................................................ 26
Bad-debt reserves. See Valuation reserves.
Bank ownership, changes i n ..................................................................................... 18
Bank Protection Act of 1968 ..................................................................................... 27
Bank supervision. See Supervision of banks; Examination of
insured banks.
Banking offices, number of. See Number of banks and branches.
Banks in financial difficulties:

300

FEDERAL DEPOSIT INSURANCE CORPORATION

Insured banks requiring disbursements by FDIC:
Assets and liabilities o f ................................................................. 291-292
Deposit size o f .......................................................................................... 290
Deposits protected, 1934-1969 ........................................ 11-13, 293-295
Disbursements by FDIC, 1934-1969 ............................. 11-13, 293-296
Loans made and assets purchased by F D IC ........................................ 13
Location by State, 1934-1969 ...................................................... 294-295
Losses incurred by d e p o s ito rs ................................................................. 12
Losses incurred by F D IC ........................................................................ 296
Name and location of, 1969 ................................................................... 11
Number of, 1934-1969 .......................................................................... 290
Number of deposit accounts, 1934-1969 ...............................
293-295
Recoveries by FDIC on assets acquired, 1934-1969 ......................... 296
Noninsured banks:
Number and deposits of commercial banks closed,
1934-1969 ................................................................................... 289-290
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, 1969 ........................................................ 15
Examination of, 1968 and 1969 ........................................................................ 14
Increase, branches of all banks, 1969 .................................... 5, 239, 240-241
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 commercial banks;
Examination of insured banks.
Certificates of deposit. See also Deposits............................................
. 3, 29
Charge-offs by banks. See Income of insured commercial banks;
Income of insured mutual savings banks; Valuation reserves.
Class of bank, banking data presented by:
A b so rp tio n s...................................................................
16, 238-239
Income of insured commercial banks, 1969 ......................................
279-280
Insured banks requiring disbursements by FDIC, 1934-1969 .................. 293
Number of banks and banking offices, 1969 .........
238-239, 242-250
Number of banks and d e p o s its ..................................................................... 251
Classification of b a n k s .................................................................................
236-237
Closed banks. See Banks in financial difficulties.
Commercial banks. See Assets, liabilities, and capital of banks; Deposits;
Income of insured commercial banks; Number of banks and branches.
Comptroller of the C u rre n cy............................................... iv, v, 21, 27, 30, 253, 275
Conferences with supervisors of State b a n k s .................................................... 20-21
Consolidations. See Absorptions.
Credit, bank. See Assets, liabilities, and capital of banks.
Demand deposits. See Assets, liabilities, and capital of banks; Deposits.
Deposit insurance c o vera g e ...................................................................... 7, 12-13, 26
Deposits insured by FDIC:
Estimated insured deposits, December 31, 1934-1969 ............................. 26
Increase in maximum per d e p o s ito r........................................ 7, 12-13, 26, 29
Deposits of: See also Assets, liabilities, and capital of banks:
Banks closed because of financial difficulties, 1934-1969 . .
. . 290
Commercial banks:

INDEX

301

By insurance status and type of bank, and type of account,
June 30, 1969 ..........................................................................
254-257
By insurance status and type of bank, and type of account,
258-261
December 31, 1969 ....................
Insured commercial banks:
Average demand and time deposits, 1961-1969 ............................... 277
By class of bank, December 31, 1969 ............................................... 251
By deposit size of bank, December 31, 1969 .................................... 251
December call dates, 1961, 1965-1969 ............................................... 265
Mutual savings banks, by insurance status, June 30, 1969, and
December 31, 1969 ............................................................................
263
Insured mutual savings banks:
Average demand and time deposits, 1961-1969 ............................... 286
December call dates, 1961, 1965-1969 ............................................... 268
Deposits, number of insured commercial banks with given ratios of
demand to total d e p o s its ........................................................................
273
Directors of FDIC. See Federal Deposit Insurance Corporation.
Disbursements. See Banks in financial difficulties.
Dividends:
To depositors in insured mutual savings banks. See Income of insured
mutual savings banks.
To stockholders of insured commercial banks. See Income of insured
commercial banks.
Earnings of banks. See Income of insured commercial banks; Income of insured
mutual savings banks.
Employees:
F D IC ........................................
21
Insured commercial banks,
number and compensation, 1961-1969 .........
. 276-277
Insured mutual savings banks, number and
compensation, 1961-1969 ...............................
. . 285-286
Examination of insured banks:
By FDIC, 1969 ..................................................................................................... 14
Regions and regional d ire c to rs .......................................................................... vi
Expenses of banks. See Income of insured commercial banks;
Income of insured mutual savings banks.
Expenses of F D IC ...............................................
. 23-25
Failures. See Banks in financial difficulties.
Federal banking le g is la tio n .............................
. 6-8, 139-169
Federal Deposit Insurance Corporation:
Actions on a p p lic a tio n s ................................................................................. 15-16
Assessments on insured b a n k s ................................................................... 23-25
Assets .................................................................................................................. 22
Audit .................... .............................................................................................
26
Banks examined by, and submitting reports t o ........................... 13-14, 18-19
Borrowing p o w e r............................................................................................ 22-23
Capital s t o c k ..................................................................................................... 25n
Conferences .................................................................................................. 20-21
Coverage of deposit insurance, banks p a rtic ip a tin g .................. 7, 12-13, 26
Deposit insurance fund (s u rp lu s )................................................. 22-23, 25-26
Directors (members of the B o a rd )............................................................... v, 21
Disbursements for protection of d e p o s ito rs ........................... 11-13, 291-296
D iv is io n s ......................................................................................................... iv, 21

302

FEDERAL DEPOSIT INSURANCE CORPORATION

Employees ............................................................................................................ 21
Examination of b a n k s ................................................................................... 13-14
Financial statements, 1969 .......................................................................... 22-24
Income and expenses, 1933-1969 ................................................................... 25
Insured banks requiring disbursements by. See Banks in
financial difficulties.
Liabilities .............................................................................................................. 22
Loans to, and purchase of assets from, insured b a n k s ............................... 13
Losses incurred, 1934-1969 .............................................................................. 13
Methods of protecting d e p o s ito rs ............................................................... 11-12
Officials .................................................................................................................. v
Organization ...................................................................................