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S '

ANNUAL REPORT OF THE
FEDERAL DEPOSIT INSURANCE CORPORATION




1975

J




Ill

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

F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N
W ashington, D.C ., M arch 15, 1976

SIRS: Pursuant to the provisions of section 17(a) o f the Federal Deposit
Insurance A ct, the Federal Deposit Insurance C orporation is pleased to subm it
its annual report fo r the calendar year 1975.

Very tru ly yours,

F R A N K W ILLE
Chairman

TH E P R E S ID E N T OF T H E S E N A T E
TH E S P E A K E R OF T H E H O USE OF R E P R E S E N T A T IV E S







FEDERAL DEPOSIT INSURANCE CORPORATION

FE DERAL DEPOSIT INSURANCE CORPORATI ON

BOARD OF DIRECTORS
C hairm an............................................................................ Frank Wille
D ire c to r............................................................... George A. LeMaistre
Comptroller o f the Currency ..................................... James E. Smith

OFFICIALS
Deputy to the Chairman......................................... Robert E. Barnett
Assistant to the Director ...................................John C.H. Miller, Jr.
Assistant to the Director ......................................... Joseph M. Ream
(Comptroller o f the Currency)
Executive S e cretary...................................................... Alan R. Miller
Director, Division o f Bank Supervision........................John J. Early
General Counsel (A c tin g )......................................... Reford J. Wedel
C ontroller...........................................................Edward F. Phelps, Jr.
Chief, Division o f Liquidation ................................... George W. Hill
Director, Division o f Research.................................Paul M. Horvitz
Director, Office o f Management System s............. Robert P. Rogers
Director, Office o f Corporate Planning...........Stanley C. Silverberg
Director, Office o f Corporate A u d it s ............... Robert D. Hoffman
Special Assistant to the Chairman and Director (Acting)
Office o f Bank Customer Affairs ....................Stephen C. Hansen
Special Assistant to the Chairman ................. Robert F. Miailovich
Special Assistant to the Director ......................C.F. Muckenfuss, III
Executive Assistant to the B o a rd ............... Tim othy J. Reardon, Jr.




Decem ber 31, 1975

VI

FEDERAL DEPOSIT INSURANCE CORPORATION REGIONS

REGIONAL DIRECTORS
Atlanta
Minneapolis
Lewis C. Beasley
Roger B. West
2 Peachtree St., N.W., Suite 3030
730 Second Avenue South, Suite 266
A tlanta, Georgia 30303
Minneapolis, Minnesota 55402
Boston
New Y o rk
Mark J. Laverick
Claude C. Phillippe
2 Center Plaza, Room 810
345 Park Avenue, 21st Floor
Boston, Massachusetts 02108
New Y o rk , New Y o rk 10022
Chicago
Omaha
James A. Davis
B urton L. Blasingame
233 S. Wacker Drive, Suite 6116
1700 Farnam Street, Suite 1200
Chicago, Illinois 60606
Omaha, Nebraska 68102
Columbus
Philadelphia
John R. Curtis
Frank T. Locki
37 West Broad Street, Suite 600
5 Penn Center Plaza, Suite 2901
Columbus, Ohio 43215
Philadelphia, Pennsylvania 19103
Dallas
Richmond
Q uinton Thompson
John Stathos
908 E. Main Street, Suite 435
300 N orth Ervay Street, Suite 3300
Richmond, V irginia 23219
Dallas, Texas 75201
Madison
St. Louis
Bernard J. McKeon
Robert V. Shumway
1 South Pinckney Street, Room 813
720 Olive Street, Suite 2909
Madison, Wisconsin 53703
St. Louis, Missouri 63101
Memphis
San Francisco
Roy E. Jackson
Charles E. Doster
165 Madison Avenue, Suite 1010
44 Montgomery Street, Suite 3600
Memphis, Tennessee 38103
San Francisco, C alifornia 94104
D ecem ber 3 1 , 1975

FEDERAL

DEPOSIT

Main Office: 550



17th

INSURANCE

Street,

N.

W„

CORPORATION

W ashington,

D.

C., 2 0 4 2 9

VII

CONTENTS

Banking offices— bank performance— 1975 ...................................xi
Deposit insurance participation and coverage...............................xiv
PART ONE
OPERATIONS OF THE CORPORATION
Deposit insurance disbursements ..................................................

3

Supervisory a c tiv itie s ......................................................................

8

Administration of the Corporation................................................

24

Finances of the C orporation...........................................................

26

PART TWO
MERGER DECISIONS OF THE CORPORATION
Bank absorptions approved by the C o rpo ra tion..........................

35

Bank absorptions denied by the C o rpo ra tion..............................

119

PART THREE
LEGISLATION AND REGULATIONS
Federal legislation (summary)— 1975 ............................................ 129
Rules and regulations of the Corporation (summary)— 1975 . . .

131

PART FOUR
STATISTICS OF BANKS AND DEPOSIT INSURANCE
Number of banks and branches ....................................................

136

Assets and liabilities of banks......................................................... 157
Income of insured banks ............................................................... 179
Banks closed because of financial difficulties;
deposit insurance disbursements................................................ 195




Vlll

TABLES
DEPOSIT INSURANCE DISBURSEMENTS:
1. Protection of depositors of failed banks requiring disbursements by
the Federal Deposit Insurance C orporation, 1934-1975 ...................

6

2. Analysis o f disbursements, recoveries, and losses in deposit insurance
transactions, January 1, 1934-December 31, 1975 ............................

7

3. Insured banks closed during 1975 requiring disbursements by the Fed­
eral Deposit Insurance C o rp o ra tio n ........................................................

8

SUPERVISO RY A C T IV IT IE S :
4. Bank exam ination activities o f the Federal Deposit Insurance Corpora­
tion in 1974 and 1975 .............................................................................

11

5. Mergers, consolidations, acquisitions o f assets and assumptions o f lia­
bilities approved under section 18(c) of the Federal Deposit Insur­
ance A c t during 1975 ...............................................................................

15

6.

Approvals under section 18(c) of the Federal Deposit Insurance A c t
during 1975— banks grouped by size and in States according to
status o f branch b a n k in g ..................................... .....................................

16

7. Actions to term inate insured status o f banks charged w ith unsafe or
unsound banking practices or violations o f law or regulations,
1936-1975.....................................................................................................

17

8.

Cease-and-desist orders and actions to correct specific unsafe or un­
sound practices or violations of law or regulations, 1975 ................

18

A D M IN IS T R A T IO N OF THE C O RPO RATIO N:
9. Number o f officers and employees o f the Federal Deposit Insurance
C orporation, December 31, 1974 and 1975 ........................................

25

FINANCES OF THE C ORPO RATIO N:
10. Statement of financial condition, Federal Deposit Insurance Corpora­
tion , December 31, 1975 ........................................................................

26

11. Statement of income and the deposit insurance fund, Federal Deposit
Insurance C orporation, year ended December 31, 1975 ...................

27

12. D eterm ination and d istrib u tio n of net assessment income, Federal
Deposit Insurance C orporation, year ended December 31, 1975 . . .

28

13. Sources and application o f funds, Federal Deposit Insurance Corpora­
tion, year ended December 31, 1975 ...................................................

28

14. Income and expenses, Federal Deposit Insurance Corporation, by
year, from beginning o f operations, September 11, 1933, to De­
cember 31, 1975 .........................................................................................

30

15. Insured deposits and the deposit insurance fund, 1934-1975 ................



31

IX

NUMBER OF BANKS A N D BRANCHES:
Explanatory note ....................................................................................................

137

101. Changes in number and classification of banks and branches in the
United States (States and other areas) during 1975 .......................... 138
102. Changes in number o f commercial banks and branches in the United
States (States and other areas) during 1975 by State ..................... 140
103. Number o f banking offices in the United States (States and other
areas), December 31, 1975
Grouped according to insurance status and class o f bank, and
b y State o r area and type o f o ff ic e ................................................. 142
104. Number and deposits o f all commercial and mutual savings banks
(States and other areas), December 31, 1975
Banks grouped b y class and deposit s iz e ........................................ 151
105. Number and deposits o f all commercial banks in the United States
(States and other areas), December 31, 1975
Banks grouped by deposit size and S t a t e ..................................... 152
ASSETS A N D L IA B IL IT IE S OF BANKS:
Explanatory note ....................................................................................................

157

106. Assets and liabilities of all commercial banks in the United States
(States and other areas), June 30, 1975
Banks grouped b y insurance status and class o f b a n k ................ 159
107. Assets and liabilities of all commercial banks in the United States
(States and other areas), December 31, 1975
Banks grouped b y insurance status and class o f b a n k ................ 163
108. Assets and liabilities of all mutual savings banks in the United States
(States and other areas), June 30, 1975, and December 31, 1975
Banks grouped b y insurance s ta tu s ................................................. 167
109. Assets and liabilities o f insured commercial banks in the United
States (States and other areas), December call dates, 1965,
1971-1975 ................................................................................................ 169
110. Assets and liabilities of insured mutual savings banks in the United
States (States and other areas), December call dates, 1965,
1971-1975 ................................................................................................ 172
111.

Percentages of assets and liabilities o f insured commercial banks
operating throughout 1975 in the United States (States and other
areas), December 31, 1975
Banks gro up ed by am ount o f dep osi t s .......................................... 174

112.

Percentages of assets and liabilities of insured mutual savings banks
operating throughout 1975 in the United States (States and other
areas), December 31, 1975
Banks grouped by am ount o f d e p o s its .......................................... 175

113. D istribution o f insured commercial banks in the United States
(States and other areas), December 31, 1975
Banks grouped according to am ount o f deposits and by ratios
o f selected i terns to assets o r deposits............................................ 176



X

INCOME OF INSURED BANKS:
Explanatory note ....................................................................................................

179

114. I ncome o f insured commercial banks in the United States (States and
other areas), 1967-1975 ........................................................................ 182
115. Ratios o f income o f insured commercial banks in the United States
(States and other areas), 1967-1975 ................................................... 184
116. Income o f insured commercial banks in the United States (States and
other areas), 1975
Banks grouped b y class o f b a n k ...................................................... 185
117. Income o f insured commercial banks operating throughout 1975 in
the United States (States and other areas)
Banks grouped b y am ount o f d e p o s its .......................................... 187
118. Ratios of income o f insured commercial banks operating throughout
1975 in the United States (States and other areas)
Banks grouped according to am ount o f deposits ....................... 189
119. Income o f insured mutual savings banks in the United States (States
and other areas), 1971-1975 ................................................................. 191
120. Ratios o f income o f insured mutual savings banks in the United
States (States and other areas), 1971-1975 ........................................ 193

BANKS CLOSED BECAUSE OF F IN A N C IA L D IF F IC U L T IE S ;
DEPOSIT INSURANCE DISBURSEMENTS:
Explanatory note ........................................................................ ............................ 196
121. Number and deposits o f banks closed because o f financial d if fi­
culties, 1934-1975 .................................................................................. 197
122. Insured banks requiring disbursements by the Federal Deposit Insur­
ance Corporation during 1975 ............................................................. 198
123. Depositors, deposits, and disbursements in failed banks requiring dis­
bursements by the Federal Deposit Insurance Corporation,
1934-1975
Banks grouped b y class o f bank, year o f deposit p a y o ff or
deposit assumption, am ount o f deposits, and S t a t e ...................200
124. Recoveries and losses by the Federal Deposit Insurance C orporation
on principal disbursements fo r protection of depositors,
1934-1975 ............................................................................................... 203




XI

BANKING OFFICES— BANK PERFORMANCE-1975
In 1975, for the sixth consecutive year, there was an increase in
the number of commercial banks operating in the United States,
but the increment was less than in 1974. The number of banks
increased by 173, reaching a total of 14,654 at year-end 1975. New
commercial banks beginning operations during the year totaled 264,
while 94 banks were eliminated by mergers. Other factors resulted
in a net addition of three banks to the total (table 101).
Texas, Florida, and Illinois each reported 30 or more new banks.
These three unit-banking States accounted for over one-third of all
newly organized banks, while California and Colorado, the latter
also a unit-banking State, reported 21 and 17 respectively (table
102). The number of banks declined in 14 States. The largest such
decline was 9 institutions in New Jersey, where mergers eliminated
12 banks. In Pennsylvania, where the number of banks has declined
by 30 percent in the last 10 years, a net decrease o f eight banks
occurred in 1975.
The number of mutual savings banks declined by four during
1975, as a result of five absorptions and one bank beginning opera­
tions. A t year-end, these banks were operating in 17 States and
Puerto Rico; 11 of these were Northeastern States.
Insured commercial banks at the end of 1975 totaled 14,385, an
increase of 155 from 1974. Of this net increase, insured State banks
not members of the Federal Reserve System gained 147, national
banks gained 34, and State member banks lost 26. The margin of
new banks above banks lost by mergers was 115 for insured non­
member banks, 37 for national banks, and 1 for State member
banks. A t the same time, the insured nonmember group gained 30
banks from national and State member banks changing their super­
visory class; national banks decreased by 2, and State member
banks decreased by 28 as the result of these changes.
Of the 269 noninsured commercial banks at year-end 1975, 192
were banks of deposit and 77 were nondeposit trust companies. Net
additions of 5 noninsured trust companies and 13 other noninsured
banks were recorded in 1975. Continuing a trend of recent years,
branches of foreign banks accounted for the major share of institu­
tions entering the banking system with noninsured status. Of the 12
noninsured banks of deposit beginning operations, 8 were branches
of foreign banks; 6 foreign branches were located in Chicago, 1 in
New York City, and 1 in Puerto Rico. During the year, five non­
insured banks converted to insured status, with four becoming
insured nonmember banks and one becoming a State member bank.
Branches of commercial banks increased by 1,557 during 1975;
at year-end the number in operation was 30,262. Over one-half of
commercial bank branches are located in seven States, but these



XII

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

States accounted for only slightly more than one-third of the
growth in number of branches during 1975. The total increase in
branches, though well above the average increase for the previous
decade, was 430 less than in the peak year 1974, and 289 less than
in 1973. Compared to 1974, declines in new branching were wide­
spread. Only about eight States reported substantially more new
branches or facilities than during 1974, and most of these States
were relatively less populous States, or States where full service
branching is closely restricted under State law or regulations.
During 1975, the economy passed the most severe economic
recession since the 1930s, the inflation rate decreased, and money
market rates declined sharply from 1974 levels as demand for funds
waned. Total assets of insured commercial banks increased by only
4.4 percent during 1975. Most of the additional funds available to
banks during the year were invested in U.S. Treasury securities, this
reflecting weak loan demand, bank policies of rebuilding liquidity,
and the availability of larger amounts of these securities with the
rising Federal deficit. Investment in tax-exempt securities rose by
slightly more than 5 percent, this moderate growth probably re­
flecting the somewhat lower level of taxable operating earnings of
insured commercial banks compared to 1974, as well as the uncer­
tainties which pervaded the municipal market especially in 1975.
Total loans declined slightly from year-end 1974 to year-end 1975;
real estate and total consumer lending each rose by about 3 percent,
but commercial and industrial loans declined by more than 4 per­
cent. As a result of these changes, there was some increase in the
ratio of U.S. Treasury securities to total assets, while the ratio of
loans to total assets declined.
Total deposits of commercial banks rose about 4.6 percent, with
demand deposits growth only about one-third of the 6.3 percent
rise in time and savings deposits. Banks reduced their use of large
CDs during the year, and apparently also lengthened somewhat the
maturities of these deposits.
Insured commercial banks added to their capital accounts at an
8.6 percent rate during 1975, and there was some improvement in
the ratio of capital to assets of banks generally. Capital notes and
debentures contributed less than $150 million to capital accounts,
about the same amount as in 1974. The percentage of equity capital
to total capital accounts at year-end 1975 was virtually unchanged
from a year earlier.
Insured commercial banks reported only a small increase in net
income in 1975— about 2.3 percent. Net operating income declined
2.4 percent because of lower rates charged on loans and the slacken­
ing in loan demand, and the drop in operating income was not
entirely offset by a decline in operating expenses. The major o ff­
setting item was interest and dividends paid on deposits which



B A N K IN G O F F IC E S — B A N K P E R F O R M A N C E -1 9 7 5

XIII

declined almost 6 percent during the year. Interest paid on large
CDs declined substantially, reflecting the softer demand for these
volatile funds, and also increases in other deposits, especially sav­
ings. As a corollary to these developments, the interest spread
between what banks paid for deposits and what they earned on
assets increased. The average spread in 1975 wasabout 1.28 percent,
up about 39 basis points from the year before.
Charge-offs of bad loans were much higher in 1975, in part
because of recession-associated business failures. Although these
included some failures of real estate investment trusts, in most cases
of troubled REITs, the institutions remained in operation by virtue
of renegotiated terms of loans including reduced or suspended loan
interest. Net loan charge-offs by insured commercial banks in 1975
were $3.2 billion, compared to $2.0 billion in 1974, however, the
amount charged to operating expenses exceeded loan charge-offs by
$400 million. As a result of this and a decline in total loan volume,
loan loss reserves as a percent of total loans rose 7 basis points to
1.72 percent at the year-end.
Mutual savings banks benefitted as inflation moderated in 1975,
and as short-term interest rates declined sharply from their 1974
highs. Competing money market rates at times even fell below the
rates paid by mutual savings banks— bringing significant inflows of
deposits into these banks. Deposits rose 11.3 percent in 1975, with
almost two-thirds of that increase occurring in the first half of the
year. Mutual savings banks used these new funds, for the most part,
to purchase government and corporate securities. U.S. Treasury and
Federal agency securities increased 57.8 percent during the year.
Mutual savings banks increased their total loans by 3.4 percent, or
$2.6 billion, during 1975, compared to a 2.5 percent increase dur­
ing 1974. However, loan activity declined in 1- to 4-family FHAinsured and VA-guaranteed mortgages and in construction loans.
Earnings from loans and investments of mutual savings banks
continued to rise except for "other loans." Earnings on "other
loans," which are mostly Federal funds sold and short-term pass­
book loans, were affected by lower short-term rates. On the aver­
age, insured mutual savings banks' return on real estate loans was up
26 basis points to 7.22 percent, but at the same time, average
interest and dividend payments on deposits increased 20 basis
points to 5.98 percent. Net operating income increased almost 10
percent in 1975, but because interest paid on deposits was up
nearly 12 percent, net operating income after interest and dividends
dropped 4.5 percent, or $28 million. However, because of an $86
million reduction in losses from securities sold, savings banks
showed a 15.1 percent increase in after-tax net income from 1974
to 1975. Large savings banks, those with over $500 million of
deposits, had somewhat lower earnings on total assets compared to




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

XIV

the smaller banks, reflecting lower rates of return on loans and
larger losses on securities.

DEPOSIT INSURANCE PARTICIPATION AND COVERAGE
Federal deposit insurance is available to incorporated banks and
trust companies that are engaged in the business of receiving de­
posits. Under section 4(b) of the Federal Deposit Insurance Act,
Federal deposit insurance is mandatory for all national banks and
for State banks that are members of the Federal Reserve System.
Institutions participating in the Federal deposit insurance program
on December 31, 1975, included more than 98 percent of all
commercial banks in the United States, and nearly 70 percent of all
mutual savings banks. There were 269 operating commercial banks
(including nondeposit trust companies) and 147 mutual savings
banks not insured by the FDIC. Of the noninsured commercial
banks, one or more operated in each of 38 States and 20 or more
operated in each of 3 States (Colorado, Illinois, and New York). A t
year-end 1975, all except one of the mutual savings banks not
insured by the FDIC were located in Massachusetts and were
covered under an insurance program of that State. During the year,
12 mutual savings banks in Massachusetts became insured by the
FDIC.
Public Law 93-495, which was effective November 27, 1974,
amended the Federal Deposit Insurance Act to double insurance
coverage from $20,000 to $40,000, and for most public funds,
including State and local government time and savings deposits
(except deposits held in out-of-State banks) and Federal deposits,
to increase coverage five-fold to $100,000. The Corporation's sur­
vey of accounts and deposits on June 30, 1975 showed that, in all
insured banks, 276.5 million depositors or accounts held deposits of
$844.9 billion. Of these accounts, about 99.4 percent had deposits
not exceeding $40,000 in private accounts and $100,000 in govern­
ment time and savings accounts (chart A).
For all insured banks on June 30, 1975, an estimated 64.3 per­
cent of total deposits in those banks were insured; in commercial
banks and mutual savings banks the estimated percentages were
60.1 percent and 98.0 percent respectively. Since June 30, 1972,
when the previous complete survey of deposits was conducted,
these various percentages increased from 3.4 to 3.8 percentage
points. These increases were the result of the higher limits of insur­
ance per depositor which became effective in November 1974, and
also they reflected changes in the composition of deposits, partic­
ularly the relatively large growth in IPC time deposits, during that

period.


D E P O S IT IN S U R A N C E P A R T IC IP A T IO N A N D C O V E R A G E

D E P O S IT A N D D E P O S IT O R

XV

IN S U R A N C E

ALL INSURED B A N K S , JUNE 3 0 , 1975

ACCOUNTS

D E P O S IT S
T o ta l a m o u n t: $ 8 4 4 .9 b illio n

T o ta l n u m b e r: 2 7 6 .5 m illio n

35.7°/
N o n in s u r e d

C h a rt B

D E P O S IT S BY SIZE A N D TYP E OF A C C O U N T
A LL IN S U R E D B A N K S , JU N E 3 0 , 1 9 75

TYPE OF A C C O U N T

D e m a n d , IP C

S a v in g s, IPC

O th e r tim e , IP C

P u b lic fu n d s, d e m an d

Public fu n d s,
tim e & s av in g s

A ccounts o f

$40,000 or less
$ 4 0 ,0 0 1 -$ 1 0 0 ,0 0 0
t

90

120

4150

H180

DEPOSITS (B IL LIO N S OF D O LLAR S)

IPC — Individuals, partnerships, and corporations
^Includes foreign, in terb ank, and c e rtifie d check deposits




I $100,001 or more

H210

+

H

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

XVI

In all insured banks, while more than 92 percent of savings de­
posits of individuals, partnerships, and corporations were held in
accounts of $40,000 or less in 1975, only 50 percent of IPC de­
mand deposits were held in accounts of $40,000 or less (chart B).
About 12 percent of public deposits were held in accounts of
$100,000 or less. The largest proportion of deposits insured was an
estimated 96.4 percent for IPC savings deposits (chart C). In con­
trast, only 25.4 percent of public deposits were insured; however,
such deposits are frequently protected by the posting of collateral
in addition to the coverage o f deposit insurance.

C h a rt C

IN S U R A N C E OF DEPO SITS BY TYPE OF A C C O U N T
A LL INSURED B A N K S , JU N E 3 0 , 1975

TYPE OF AC C O U N T

D e m a n d , IP C

S avings, IPC

O th e r tim e , IP C

P ublic fu n d s , de m an d

Public fu n d s ,
tim e & s av in g s
Insured deposits

mmNoninsured deposits
H------h

90

120

150

180

210

DEPOSITS (B ILLIO NS OF DOLLARS)

^Includes foreign, interbank, and certified check deposits




H------ 1




OPERATIONS OF THE CORPORATION
PART ONE




DEPOSIT INSURANCE DISBURSEMENTS
The Federal deposit insurance program began at a time of severe
crisis in the financial system of the nation, just following a period
of several years when the failure rate among commercial banks was
a thousand or more each year. The deposit insurance program pro­
vided by the legislation was intended to serve several purposes, the
most urgent being to restore confidence in the banking system, and
eliminate “ runs" on banks. The legislation also provided for on­
going supervisory activities by the Corporation for helping to
strengthen the nation's operating banks. Of equal importance was
the objective of protecting individual depositors within the limits of
insurance, as well as protecting the nation's money supply from the
eroding effects of bank failures.
Protection of depositors, 1934-1975. Under the Banking Act of
1933, in the event of a closure of an insured bank, the Corporation
could make payment to depositors directly or through another
bank up to the lim it of deposit insurance per depositor. In 1935 the
Corporation was given a second method of protecting depositors of
failed banks. In order to reduce its risk or expected losses, the
Corporation was authorized to assist the absorption of a failing
institution, or the assumption o f its deposits by another insured
bank. In assumption cases, all bona fide depositors in the failing
institution are fully protected, regardless of the size of their ac­
counts. The assumption method has been used in the majority of
cases in recent years, and the average size of banks whose deposits
were assumed has tended to be substantially larger than for insured
banks closed with direct payments to depositors.
In 1950, when the Federal Deposit Insurance Act was reenacted,
the FDIC was given authority under section 13(c) to assist, under
certain circumstances, insured banks in danger of failing to remain
in operation when the Board o f Directors o f the Corporation deter­
mines that the failing bank's services are essential to its community.
This method of depositor protection has been used sparingly. The
first use of assistance to operating banks under section 13(c) oc­
curred in 1971, and it had been used in only three cases through the
end of 1975.
Since 1934, a total of 519 failure cases involving insured banks
have required the Corporation's disbursements, including 300 direct
payoff cases and 219 deposit assumption cases. Although the num­
ber of failures of insured banks in the past few years has averaged
only slightly above the average number each year since the early
1940s (chart D), these recent failures have included several quite
large institutions, requiring substantial increases in the Corpora­
tion's disbursements in failure cases.




4

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

C h a rt D

INSURED BANK FAILURES, 1 9 3 4 - 1 9 7 5
Number of
Banks

Number of
Banks

Due primarily to the financial assistance of the Corporation,
depositors have recovered 99.5 percent of their total deposits in all
failure cases, leaving just over one-half of 1 percent not paid (chart
E). Total deposits recovered have amounted to more than $3.95
billion, of which $3.52 billion were held in banks whose deposits
were assumed by other insured banks with the Corporation's assist­
ance. Of the $428 million paid to nearly 610 thousand depositors in
payoff cases, almost three-fourths of this amount was paid by the
FDIC, with the remainder paid from deposit offsets, security or
preference, and liquidation of assets (table 1). Including the
amounts disbursed in failure cases and assistance to operating
banks, and all losses and provision for losses on assets being liqui­
dated, the Corporation's losses of $254 million have amounted to
15.4 percent of its disbursements in all insurance operations (table
2 ).
Liquidation activities. The Federal Deposit Insurance Act re­
quires that the Corporation be appointed receiver of a closed
national bank and that it accept appointment as receiver of an
insured State bank if such appointment is tendered by the appro­
priate State authority and is either authorized or permitted by State
law. In practice, the Corporation is appointed receiver of almost all
closed insured State banks.




5

D E P O S IT IN S U R A N C E D IS B U R S E M E N T S

D EPO SITS A N D LO S S E S
IN FAILED IN S U R E D B A N K S , 1 9 3 4 - 1 9 7 5

T O T A L D E P O S IT S
$ 3 .9 7

B illio n

D IS B U R S E M E N T S
BY F D IC
$ 1 .6 5

B il l io n

Losse s
to F D IC
$ 2 5 3 . 9 m illio n

d e p o s it o r s
$ 2 0 .8 m illio n

Under authority delegated by the Corporation's Board of
Directors, the Division of Liquidation is responsible for the liquida­
tion not only of the assets of closed banks but also of any assets
acquired by the Corporation when Corporation funds are used to
facilitate •assumptions of deposits in failed banks. A t year-end 1975,
the Division was handling 68 open liquidation cases located in 28
States and the Virgin Islands.
In connection with the Franklin National Bank liquidation, the
FDIC's largest, the Corporation had received for administration just
over $2.15 billion of the bank's assets through December 31, 1975.
In addition, the Corporation was administering approximately $86
million in loans charged o ff by Franklin National prior to its
closing. By year-end 1975, the Corporation had succeeded in collect­
ing almost $633 million on such assets, and had paid more than
$598 million of this amount to the Federal Reserve Bank of New
York, thereby reducing the principal amount due on the "w indo w "
loan extended to Franklin National at the time of closing to about
$1.13 billion. Interest at the rate of 7.52 percent per annum on the
note will not be due until the note matures on October 8, 1977.
The principal book value of assets remaining to be liquidated as of
December 31, 1975 was $1.61 billion compared with the principal
and
 accrued interest on the FDIC's outstanding debt to the Federal


6

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

Table 1. PROTECTION OF DEPOSITORS OF FA ILED BANKS REQUIRING
DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,
19 34-1975
Deposit
p a y o ff cases
(300 banks)

A ll cases
(519 banks)

Percent

Deposit
assum ption cases
(219 banks)

Percent

Percent

Num ber of depositors or accounts—total1 ...........

2,964,223

100.0

614,772

100.0

2.349.451

Full recovery received or available.................

2,959,012

99.8

609,561

99.2

2.349.451

100.0
100.0

2,912,030
4 0,926
3,149
2,907

98.2
1.4

56 2 ,5793
40,926
3,149
2,907

91.5
6.7
0.5
0.5

2.349.451

100.0

3.523.776
3.523.776

100.0
100.0

From
From
From
From

F D IC 2 .......................................................
o ffs e t4 ........................................................
security o r preference5 ........................
asset liq u id a tio n 6....................................

Full recovery not received as of December 31,
1975 ...............................................

0.1
0.1

5,211

T erm in ated c a s e s ..............................................
Active c a s e s ........................................................

3,443
1,768

0.1
0.1

3,443
1,768

0.5
0.3

A m oun t of deposits (in t h o u s a n d s )-to ta l...........
Paid or made ava ila b le .................................

3,973,114
3,952,348

100.0

449,336
428,570

100.0

3,838,053
21,281
49,689
43,325

96.6
0.5
1.3

1.1

3 1 4 ,2757
21,281
49,689
43,325

Not paid as of December 3 1 ,1 9 7 5 ................

20,766

0.5

20,766

4.6

T e rm inated c a s e s ..............................................
A ctive cases1 1.....................................................

2,682
18,084

0.1

2,682
18,084

0.6

0.4

By
By
By
By

F D IC 2 ............................................................
o ffs e t8 ............................................................
security or preference9. .............................
asset liq u id a tio n 10.......................................

99.5

95.4
70.0
4.7

11.1
9.6

4.0

1 Num ber of depositors in deposit p a y o ff cases; num ber o f accounts in deposit assumption cases.
2T hrough dire ct paym ent to depositors in deposit p a y o ff cases; through assumption o f deposits by oth e r insured banks, facilita te d
by FDIC disbursements of $1,198,176 thousand, in deposit assum ption cases.
3 1ncludes 60,033 depositors, in term inated cases, w ho failed to claim th e ir insured deposits (see note 7).
4 Includes only depositors w ith claims offset in fu ll; most o f these w o u ld have been fu lly protected by insurance in the absence of
offsets.
5 Excludes depositors, paid in part by F D IC , whose deposit balances were less than the insurance m axim um .
6The insured p ortions of these depositor claims were paid by the C orporation.
7 1ncl udes $190 thousand unclaimed insured deposits in term inated cases (see note 3).
8 1ncl udes all am ounts paid by offset.
9 1ncludes all secured and preferred claims paid fro m asset liq u id a tio n ; excludes secured and preferred claims paid by the
C orporation.
I °ln c lu d e s unclaim ed deposits paid to authorized p u b lic custodians.
I I Includes $7,862 thousand representing deposits available, expected through o ffset, or expected fro m proceeds o f liq u id a tio n s.

Reserve Bank of New York of $1.26 billion. Based on a number of
assumptions about the duration of the receivership, the pace of
collections, and the results of litigation, it appears unlikely that the
Corporation will suffer any loss in this very large failure.
Banks failing in 1975. The Corporation's disbursements to pro­
tect depositors were required in 13 failures of insured banks during
1975 (table 3). Total deposits of these banks, the largest of which
was the $98.3-million American City Bank & Trust Company, N.A.,
amounted to $339.6 million. Failures of these banks were attribut­
able to a variety of causes, the most common being managerial
weakness in loan portfolio and general asset management, followed
by self-serving loans and loans to unworthy borrowers. Among the
other causes cited were improper loans to officers or directors,
misuse of brokered funds, and kiting operations.
Ten of the failure cases during 1975 were handled by the deposit
assumption method, and three by deposit payoffs. In two of the




D E P O S IT IN S U R A N C E D IS B U R S E M E N T S

Table 2. A N ALYSIS OF DISBURSEMENTS, RECOVERIES, AND LOSSES
IN DEPOSIT INSURANCE TRANSACTIONS,
JA N U A R Y 1, 1934— DECEMBER 31, 1975
(In thousands)
Typ e o f disbursem ent
A ll d is b u rs e m e n ts -to ta l2

Disbursements

Recoveries1

Losses

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

$1,650,589

$ 1,396,695

$ 253,894

P rin cip al disbursem ents in deposit assum ption and p a y o ff c a s e s -to ta l____

1,513,219

1,276,264

236,955

1,035,176

199,770

163,000

488,051
347,355
163,000

314,142
901

231,619
46,239

37,185
-0 -

69,073

$ 11,816

45,131
23,942
-0 -0 -

-0 -0 5,125
6,691

Loans and assets purchased (219 deposit assumption cases):
To Decem ber 31, 1975..................................................................................
Estim ated a d ditional .....................................................................................
Notes purchased to fa c ilita te deposit assu m p tio n s.......................................
Deposits paid (300 deposit p a y o ff cases):
To December 31, 1 9 7 5 ...................................................................................
Estim ated a d d itio n a l.......................................................................................
Advances and expenses in deposit assum ption and p a y o ff c a s e s - to ta l____
Expenses in liq u id a tin g assets:
Advances to p ro te c t a s s e ts ...........................................................................
L iq u id a tio n e xp e n se s ....................................................................................
Insurance expenses3 .......................................................................................
Field p a y o ff and oth e r insurance expenses in 300 deposit p a y o ff cases3.

$

O ther d is b u rs e m e n ts -to ta l.......................................................................................
Assets purchased to fa c ilita te te rm in a tio n o f liq u id a tio n s:
To December 31, 1 9 7 5 ..................................................................................
Estim ated additio n a l .....................................................................................
Unallocated insurance expenses3 ......................................................................
Assistance to operating insured b a n k s ............................................................

$

80,889

$

45,131
23,942
5,125
6,691
56,481
9,758
723
4 6 ,000

$

51,358
4,870
4 88
-0 46 ,0 0 0

-0 -

$

5,123
4,400
723
-0 -

1 Excludes am ounts returned to closed bank e q u ity holders and $39.2 m illio n o f interest and allowable return received by FDIC.
i n c lu d e s estimated am ounts fo r pending and unpaid claims in active cases.
3 l\lo t recoverable.

deposit payoffs, Swope Parkway National Bank and The Peoples
Bank of the Virgin Islands, deposit insurance national banks were
organized by the Corporation under section 11 of the Federal
Deposit Insurance Act. In such cases, the Corporation immediately
transfers to the new bank all insured deposits in the closed bank,
and those funds are available to their owners as demand deposits in
the absence of an agreement between the depositor and the trans­
feree bank providing for a time or savings deposit. A deposit insur­
ance national bank, which is managed by an executive officer
appointed by the FDIC, has the purpose of providing essential in­
terim banking services to a community deprived by these services
because of a bank failure. By law, deposit insurance national banks
can operate for a maximum of 2 years. In creating these banks in
the two cases in 1975, the FDIC hoped to encourage both local
communities to consider the establishment and capitalization of a
new bank before there was a final disposition of the assets and
deposits transferred from the insolvent bank.
In November 1975, the Corporation authorized a loan of up to
$10 million to facilitate the merger of Palmer First National Bank
and Trust Company of Sarasota, Florida, into a newly formed
national bank subsidiary of Southeast Banking Corporation of
Miami. This commitment was authorized by the Board of Directors
under section 13(e) of the Federal Deposit Insurance Act only after
written confirmations were received from the Comptroller of the



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

8

Currency and the Board of Governors of the Federal Reserve Sys­
tem that such assistance was essential to effect the proposed acqui­
sition and to prevent the imminent failure of the Palmer Bank. In
January 1976, a new bank subsidiary of Southeast Banking Cor­
poration (Southeast First National Bank of Sarasota) assumed the
deposit liabilities and purchased certain assets of Palmer First
National Bank and Trust Company. The transaction was facilitated,
in part, by a $5 million loan from the FDIC to Southeast Banking
Corporation, the proceeds of which were used to help capitalize the
new bank.
Table 3. INSURED BANKS CLOSED DURING 1975 REQUIRING
DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION1

Name and loca tion

Date of
closing
o r deposit
assumption

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

Num ber
of de­
positors

Am ount
o f de­
posits
(in th o u ­
sands)

110,377

$339,630

Date o f firs t pay­
m ent to depositors
or disbursem ent by
FDIC

Deposi­
tors re­
ceiving
fu ll re­
covery

Deposits
paid
(in th o u ­
sands)2

110,333

$338,249

D eposit p a y o ff
Swope Parkway National
Bank
Kansas C ity, M issouri

January 3, 1975

6,497

7,435

January 4 ,1 9 7 5

6,490

7,162

F ra nklin Bank
H ouston, Texas

March 24, 1975

4,353

18,248

March 2 9 ,1 9 7 5

4,325

17,226

The Peoples Bank o f the
V irg in Islands
St. Thom as, C harlotte
Am alie,
V irg in Islands

O ctober 24, 1975

11,085

14,275

O ctober 25, 1975

11,076

14,189

February 1 9 ,1 9 7 5

7,500

95,616

May 9 ,1 9 7 5

6,919

9,862

Deposit assum ption
N orth ern Ohio Bank
Cleveland, Ohio

February 19, 1975

7,500

95,616

Chicopee Bank & T ru s t
Com pany
Chicopee, Massachusetts

May 9, 1975

6,919

9,862

Algom a Bank
A lgom a, Wisconsin

May 3 0 ,1 9 7 5

3,244

4,772

May 3 0 ,1 9 7 5

3,244

4,772

Bank o f Picayune
Picayune, Mississippi

June 18, 1975

12,700

15,352

June 1 8 ,1 9 7 5

12,700

15,352

904

2,298

904

2,298

19,353

60,603

19,353

60,603

Bank of Chidester
Chidester, Arkansas

July 1 ,1 9 7 5

State Bank of Clearing
Chicago, Illin o is

July 12, 1975

A stro Bank
Houston, Texas

O ctober 16, 1975

1,675

5,168

O ctober 1 6 ,1 9 7 5

1,675

5,168

A m erican C ity Bank
& T ru s t C om pany, N .A.
M ilw aukee, Wisconsin

O ctober 2 1 ,1 9 7 5

32,105

98,344

O ctober 2 1 ,1 9 7 5

32,105

98,344

The Peoples Bank
W illc o x , A rizon a

December 19, 1975

2,692

5,044

December 19, 1975

2,692

5,044

The F irst State Bank
o f Jennings
Jennings, Kansas

December 27, 1975

1,350

2,613

December 2 7 ,1 9 7 5

1,350

2,613

July 1 ,1 9 7 5
July 1 2 ,1 9 7 5

1 Figures adjusted to and as o f December 31, 1975.
in c lu d e s $ 2 5,9 8 2 thousand paid by FDIC claim agents in deposit p a y o ff cases. W ith FDIC assistance, all deposits were made
available in fu ll throu gh assuming banks in deposit assum ption cases.

SUPERVISORY ACTIVITIES
The FDIC has general supervisory responsibilities with respect to
insured
State banks that are not members of the Federal Reserve



S U P E R V IS O R Y A C T IV IT IE S

9

System. All banks chartered by the States are also supervised by the
State authorities. On December 31, 1975, there were 8,595 insured
nonmember commercial banks, 4,744 national banks, and 1,046
State bank members of the Federal Reserve. Though constituting a
majority of commercial banks in operation, banks supervised by the
Corporation include a larger proportion of the smaller size institu­
tions compared with national and State member banks. For ex­
ample, on December 31, 1975, of those commercial banks having
less than $100 million of deposits in domestic offices, insured
nonmember banks represented about 61 percent in numbers, and
50 percent in deposits (chart F). In contrast, the percentages for
banks having deposits more than $100 million were 25 percent and
11 percent, respectively. The number of large commercial banks in
the insured nonmember category has, however, increased signifi­
cantly in recent years. For example, during the 5-year period
through 1975, the number of insured nonmember commercial
banks having deposits of over $100 million rose from 87 to 231,
and the number of these in the $500-million-plus category increased
from 10 to 22.
Most of the larger mutual savings banks, in contrast to com­
mercial banks, are supervised by the FDIC. A t the end of 1975, the
Corporation insured and supervised more than two-thirds of all
mutual savings banks in the U.S., including 80 percent o f the banks
with more than $100 million of deposits, and all except one of the
59 banks with deposits of more than $500 million.
Examinations. The Corporation regularly conducts examinations
of all insured nonmember banks, except those subject to the selec­
tive examination withdrawal experiment which will be discussed, to
determine their current condition, evaluate bank management, and
discover and obtain correction of unsafe and unsound practices or
violations of laws or regulations. The Corporation has authority
under the Federal Deposit Insurance Act to examine any insured
bank for insurance purposes. However, the Corporation receives the
reports of examination conducted by other Federal bank super­
visory agencies and thus rarely makes its own examination of any
national bank or State bank member of the Federal Reserve.
In addition to periodic examinations, other examining and inves­
tigating activities of the Corporation are conducted in connection
with applications for deposit insurance, applications for the estab­
lishment of branches, proposed mergers, and other activities of
insured nonmember banks for which the prior approval of the
Corporation is required. During 1975, the Corporation conducted
7,354 regular examinations of main offices, only slightly more than
in 1974 (table 4). Examinations of departments and branches were
up about 17 percent while investigations in connection with appli­
cations for deposit insurance, branching, and merger activity were




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

10

C h a rt

S U P E R V IS IO N OF C O M M E R C IA L B A N K S
IN TH E U N ITE D S T A T E S ,
D e c e m b e r 3 1 ,1 9 7 5

F

N U M BER OF BANKS

A ll b an ks
(14,657)

Banks of
$100 million
or m ore
d e p o sit size
(9 2 0 b anks)

B a n k s under
$100 m illion
d e p osit size
(13,737 b a n k s)

DEPOSITS OF B A N K S

A ll b a n k s
($793 billion)

Banks of
$100 m illion
or m ore
deposit size
($536 billion)

B a n k s under
$100 million
d e p o sit size
($257 billion)




S U P E R V IS O R Y A C T IV IT IE S

11

Table 4. BANK EXA M IN A TIO N A C TIV ITIE S OF
THE FEDERAL DEPOSIT INSURANCE CORPORATION
IN 1974 AND 1975
N um ber
A c tiv ity

Field ex am inations and in ve s tig a tio n s -to ta l

1975

1974

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

28,254

22,699

E xam inations of m ain o f f i c e s - t o t a l ........................................................................................................

7,597

7,451

Regular e xa m inations of insured banks n o t members of Federal Reserve System ...............
Reexam inations or other than regular e x a m in a tio n s ....................................................................
Entrance e xam inations of operating noninsured banks ..............................................................
Special e x a m in a tio n s .............................................................................................................................

7,354
207
26
10

7,331
98
13
9

E xam inations o f departm ents and b ra n c h e s .........................................................................................

8,884

7,558

E xam inations of tru s t d e p a rtm e n ts ...................................................................................................
E xam inations o f b ra n c h e s ....................................................................................................................

1,469
7,415

1,296
6,262

In v e s tig a tio n s .................................................................................................................................................

3,998

4,515

New bank investigations ......................................................................................................................
State banks members of Federal Reserve S y s te m ....................................................................
Banks n o t m embers of Federal Reserve S y s te m ......................................................................
New branch in v e s tig a tio n s ....................................................................................................................
Mergers and c o n s o lid a tio n s .................................................................................................................
M iscellaneous investigations ...............................................................................................................

176
10
166
709
124
2,989

304
6
298
1,013
212
2,986

7,7751

3 ,1751

C om pliance e x a m in a tio n s ...........................................................................................................................
1 For expla na tion of the data, see page 11.

down somewhat from the year before. It should be noted that the
data in table 4 on compliance examinations— which are applicable
to various consumer affairs matters, and certain other areas includ­
ing external bank security— are not comparable between the 2 years
shown. Compliance reports were initiated as separate reports for
most banks beginning in September 1974 (formerly were included
as a part of the regular examination reports); however, such sep­
arate reports were made for banks in five States (including three
States in the Selective Withdrawal Program) for the full year 1974.
The selective examination withdrawal experiment in the three
States of Georgia, Iowa, and Washington, initiated in 1974, was
continued through 1975. Under this program, the Corporation
withdrew from its usual examination o f each insured State non­
member bank in these States and, for a specified number of such
banks in each State, agreed to rely primarily upon examinations by
the local State banking departments in determining their financial
condition. A t year-end 1975, about 525 banks were affected by the
Selective Withdrawal Program. Banks not under the withdrawal
program, however, continued to be examined by the Corporation in
each of the three States. Furthermore, the FDIC reserved the right
to examine any State nonmember bank in the three States whether
or not it was scheduled for exclusive State examination, and re­
served the right to terminate or modify the program at any time.
Under the Selective Withdrawal Program, the Corporation retained
its statutory responsibility to determine compliance with certain
Federal laws (see, for example, the “ Consumer Protection” section
of
this report). Each of the banks in the program was examined for


12

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

such compliance utilizing a special Compliance Examination Report
developed for that purpose. As an outgrowth of the Selective W ith­
drawal Program, the Corporation now utilizes these same reports in
its overall examination program and 7,775 such reports were gener­
ated by the field force during 1975.
During 1976 the program will be continued on a modified basis.
The Corporation will examine the 60 percent of insured non­
member banks in Georgia that it did not examine during the past 2
years, the 50 percent in Iowa it did not examine, and the 80 per­
cent in Washington it did not examine. During the course of its
examinations during 1976, the FDIC will examine these banks to
assess their current condition, and will also evaluate the examina­
tions performed during the previous 2 years by the respective State
banking departments. The experiment, through 1975, indicated
that most examination reports prepared by the State examiners in
the three States were generally consistent with FDIC practices and
procedures, and in most instances, they appeared to show an
accurate view of the safety and soundness of the banks involved.
Until the FDIC itself has examined those banks, however, a full
evaluation of the experiment cannot be reached. The modifications
being made in the program for 1976 will provide the Corporation
with that opportunity.
Applications for deposit insurance. National banks become in­
sured with the issuance of their charters, and State bank members
of the Federal Reserve receive insurance upon becoming such
members, while State nonmember banks apply directly to the Cor­
poration for deposit insurance. In all cases, section 6 of the Federal
Deposit Insurance Act specifies several criteria which the respon­
sible agency must consider before approving or certifying an institu­
tion for deposit insurance. The criteria include the financial history
and condition of the bank, the adequacy of its corporate structure,
its future earnings prospects, the general character of its manage­
ment, the convenience and needs of the community, and finally,
the consistency o f the bank's corporate powers with the purposes
of the Act.
During 1975, the Board of Directors considered 121 applications
for Federal deposit insurance by proposed new banks or operating
noninsured banks, approving 116 applications and denying 5 (one
of which was subsequently approved following amendment to the
application)(chart G). Thirty-one applications were also considered
and approved on behalf of State member banks for continuation of
their insured status following voluntary withdrawal of their
membership from the Federal Reserve System; 28 of these applica­
tions were approved under delegated authority by the Corporation's
Regional Directors.




S U P E R V IS O R Y A C T IV IT IE S

13

Applications to establish branches. Approval of the appropriate
Federal supervisory agency is necessary before any insured bank
may establish, or move, a branch office. Section 3(o) of the Federal
Deposit Insurance Act defines a branch as "any branch place of
business . . . at which deposits are received, checks paid, or money
lent." This definition may therefore include certain limited service
facilities or other offices that are not regarded as branches under
the laws of some States.
Of 505 applications considered in 1975 for the Corporation's
prior consent to the establishment of new branches, 131 were
approved by the Corporation's Board o f Directors and 368 were
approved under delegated authority by the Director of the FDIC's
Division o f Bank Supervision or by the Corporation's 14 Regional
Directors. Six such applications were denied. Of 133 applications
considered in 1975 for the Corporation's prior consent to the
operation of limited branch facilities (9 of which were unmanned
operations), 22 were approved by the Corporation's Board of
Directors and 111 were approved under delegated authority.
Mergers. Approval of the appropriate Federal bank supervisory
agency is required under section 18(c) of the Federal Deposit Insur­
ance Act, as amended, before any insured bank may engage in a
merger-type transaction. The Corporation is the deciding agency
whenever the surviving bank is to be an insured bank not a member



14

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

of the Federal Reserve, or in any merger involving a noninsured
institution with an insured bank. The Act specifies several criteria
that must be considered by the deciding agency before approving an
application, and requires further that the deciding agency shall
request (except in emergency situations to prevent a bank failure),
from each of the two other Federal bank supervisory agencies and
from the Attorney General, a report on the competitive factors
involved in each proposed merger transaction. Under the Act as
amended, the Department of Justice may bring action under the
antitrust laws to prevent the merger of an insured bank w ithin 30
days (or in situations requiring "expeditious action,'' within 5 days)
after the merger has been approved by a Federal supervisory agency.
In 1975, the Corporation acted on 44 merger-type proposals,
approving 41 and denying 3. The Corporation also approved 14
applications for merger transactions involving corporate reorganiza­
tions which, as such, had no competitive effect. In addition, the
Corporation adopted 47 advisory reports on what it considered to
be competitive factors involved in proposed merger-type trans­
actions between 2 or more operating banks. In 4 of those 47 re­
ports, the Comptroller of the Currency was advised that the
competitive factors present in the case were considered to be ad­
verse, but the Comptroller nevertheless approved 3 of the trans­
actions with no action taken on the fourth case at year-end 1975.
All of the reports to the Federal Reserve System advised that the
transactions would have no significant effects on competition. The
Department of Justice did not institute suit to prevent consumma­
tion of the three adverse transactions approved by the Comptroller.
Information on each merger application decided by the Corporation
during 1975 is contained in pages 35-126 of this report.
Merger approvals by each of the Federal bank supervisory agen­
cies under section 18(c) of the Federal Deposit Insurance Act in
1975 are detailed in tables 5 and 6. During the year, a total of 67
institutions were absorbed, compared to 124 in 1974 (chart H). It
should be noted that the merger statistics in chart H do not include
corporate reorganizations of individual banking institutions, such as
banks in process of forming one-bank holding companies, and other
merger transactions that did not have the effect of lessening the
number of existing operating banks (see table 5, note 1). With
inclusion of certain of these mergers the number of approvals is
appreciably larger; for example, the 41 FDIC approvals noted above
include 10 mergers involving operating banks in the same holding
company that are not included in chart H and tables 5 and 6.
Enforcement proceedings. When the Corporation finds that an
insured State nonmember bank has violated an applicable law, rule,
regulation, order, or supervisory agreement, or has engaged in an
unsafe or unsound banking practice, the Corporation generally



S U P E R V IS O R Y A C T IV IT IE S

15

Table 5. MERGERS, CONSOLIDATIONS, ACQUISITIONS OF ASSETS AND
ASSUMPTIONS OF LIA B ILIT IE S APPROVED UNDER SECTION 18(c)
OF THE FEDERAL DEPOSIT INSURANCE ACT DURING 1975
Offices operated
Banks

N um ber of
banks

Resources
(in thousands)

P rior to
transaction

133
66
67
28
8
29
2

$54,855,083
4 9 ,8 8 1 ,2 0 4 2
4,973,879
3,471,767
484,887
1,013,672
3,553

2,206
1,8622
344
247
40
55
2

2,204
2,2 0 4 2

63
31
32
16
6
10

29,275,032
27,604,694
1,670,338
674,338
430,425
565,575

1,370
1,259
111
52
33
26

1,370
1,370

8
4
4
2
1
1

18,990,087
17,089,587
1,900,500
1,740,201
4 4,440
115,859

463
355
108
100
6
2

463
463

62
31
31
10
1
18
23

6,589,964
5,186,923
1,403,041
1,057,228
10,022
332,238
3,553

373
248
125
95
1
27
2

371
371

A fte r
transaction

A L L C A SES1
Banks in v o lv e d .............................................................................
A bsorbing b a n k s ....................................................................
Absorbed b an ks......................................................................
N a tio n a l.............................................................................
State m em ber FR S ..........................................................
N ot m em ber F R S ............................................................
N o n in s u re d ......................................................................
CASES W ITH R E S U LT IN G B A N K
A N A T IO N A L B A N K
Banks in v o lv e d .............................................................................
Absorbing b a n k s ....................................................................
A bsorbed banks ....................................................................
N a tio n a l.............................................................................
State m em ber F R S ..........................................................
N ot mem ber F R S ............................................................
CASES W ITH R E S U LT IN G B A N K
A S TA TE B A N K M E M B E R OF THE
F E D E R A L R ESERVE SYSTEM
Banks in v o lv e d .............................................................................
A bsorbing b a n k s ....................................................................
Absorbed banks ....................................................................
N a tio n a l.............................................................................
State m em ber F R S ...................................................
N ot m em ber FR S ............................................................
CASES W ITH R E S U LT IN G B A N K
NOTAM EM BEROFTHE
F E D E R A L RESERVE SYSTEM
Banks in v o lv e d .............................................................................
Absorbing b a n k s ....................................................................
Absorbed banks ....................................................................
N a tio n a l.............................................................................
State m em ber F R S ..........................................................
N ot m em ber F R S ............................................................
Noninsured in s titu tio n s ................................................

10 m itte d are corporate reorganizations and other absorptions involving banks th a t p rio r to the transaction did n o t in d ivid u a lly
operate an office in the U nited States, and mergers of banks w ith in the same holding com pany.
2 Where an absorbing bank engaged in more than one transaction, the resources included are those of the bank before the latest
transaction and the num ber o f offices before the firs t and a fter the latest transaction.
3 Includes one savings and loan association.

attempts to secure voluntary correction by the bank's management,
if, however, these efforts fail, the Corporation may initiate pro­
ceedings to terminate deposit insurance or it may initiate ceaseand-desist proceedings.
The Corporation has the statutory authority under section 8(a)
of the Federal Deposit Insurance Act to initiate deposit insurance
termination proceedings against any FDIC-insured bank. This
authority requires the Corporation to first notify the bank con­
cerned and the appropriate Federal or State banking authority of
the alleged violations, unsafe or unsound practices, or condition of
the bank giving rise to the proceedings. The bank is given a period
of not more than 120 days to improve its condition or correct the
offending violation or practice. If the bank fails to comply with the
Corporation's directives within the prescribed period, an adminis­
trative hearing is held at which the bank can respond to the Cor­



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

16

poration's charges. With the substantiation of the Corporation's
charges, the Board of Directors of the Corporation may terminate
the insured status of the bank. In such instances, the depositors of
the bank must be notified and insured funds on deposit at the time
of termination, less any subsequent withdrawals, continue to be
insured for a period of 2 years.
A t the beginning of 1975, deposit insurance termination pro­
ceedings against four banks remained open awaiting either expira­
tion of the time period specified in which to make corrections,
examination of the bank, or analysis of the most recent report of
examination (table 7). Five additional proceedings were initiated
during 1975 and four such proceedings were either concluded after
corrections were effected, or the bank was closed. As a result, five
deposit insurance termination proceedings were pending at year-end
1975.
The Corporation likewise has the statutory authority under
section 8(b) of the Federal Deposit Insurance Act to initiate ceaseand-desist proceedings. In such cases, the bank involved is served
with a notice of charges which specifies the alleged violations or the
unsafe or unsound practices engaged in, and fixes a date for an
administrative hearing at which time the bank may respond to the
charges against it. If the evidence presented at the hearing estab­
lishes the violations or the unsafe or unsound practices, or if the
Table 6. APPROVALS UNDER SECTION 18(c) OF THE FEDERAL
DEPOSIT INSURANCE ACT DURING 1975,
BANKS GROUPED BY SIZE AND IN STATES
ACCORDING TO STATUS OF BRANCH BANKING
Absorbing banks

Absorbed banks
N um ber o f banks by size

N um ber of banks by
size (resources in $ m ill ions)

Num ber
of
banks

Num ber
of
branches

Resources
(in
thousands)

(resources in $ m illio n s)

-5

5 -1 0

1 0 -2 5

2 5 -1 0 0

Over
100

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

66
1
7
5
18
21
14

67
1
7
5
18
21
15

277
0
6
0
17
39
215

$4,973,879
1,286
72,143
23,268
3 91,372
899,923
3 ,585,887

7
1
0
3
1
1
1

13
0
5
2
3
2
1

21
0
1
0
8
9
3

18
0
1
0
6
7
4

8
0
0
0
0
2
6

Statew ide branching
- 5 ........................
5 - 1 0 ........................
1 0 - 2 5 ........................
2 5 - 1 0 0 ........................
1 0 0 -5 0 0 ........................
Over 500 ........................

29
1
3
1
7
10
7

29
1
3
1
7
10
7

144
0
4
0
2
23
115

2,209,970
1,286
41,179
5,199
155,114
461,571
1,545,621

1
1
0
0
0
0
0

7
0
2
1
1
2
1

8
0
0
0
3
4
1

9
0
1
0
3
3
2

4
0
0
0
0
1
3

L im ited-area branching
5 - 1 0 ........................
1 0 - 2 5 ........................
2 5 - 1 0 0 ........................
1 0 0 - 5 0 0 ........................
Over 500 ........................

32
3
4
7
11
7

33
3
4
7
11
8

130
2
0
12
16
100

2,692,510
22,231
18,069
173,592
438,352
2,040,266

5
0
3
0
1
1

4
2
1
1
0
0

12
1
0
4
5
2

8
0
0
2
4
2

4
0
0
0
1
3

U n it banking
5 - 1 0 ........................
2 5 - 1 0 0 ........................

5
1
4

5
1
4

3
0
3

71,399
8,733
62,666

1
0
1

2
1
1

1
0
1

1
0
1

0
0
0

T o ta l-U .S .
- 5
5 -1 0
1 0 -2 5
2 5 -1 0 0
1 0 0 -5 0 0
Over 500




17

S U P E R V IS O R Y A C T IV IT IE S

MERGERS APPR O VED* BY
FEDERAL B A N K S U P E R V IS O R Y A G E N C IE S , 1 9 6 0 - 1 9 7 5

C h a rt H

2 Q 0 ---------------------------------------------------------------------------------------------------------------------------------200
e h

Approved by C om ptroller of the Currency

* Certain mergers undertaken as part of internal reorganizations not included— see text.
" * Period beginning May 13, 1960, to end of year.

bank consents to the issuance of such an order, the Corporation
may issue a cease-and-desist order which not only requires the bank
to end the offending violations or practices, but also to correct the
conditions which resulted therefrom. Except where the order is
Table 7. ACTIONS TO TE R M IN A TE INSURED STATUS OF BANKS CHARGED
WITH UNSAFE OR UNSOUND BAN KIN G PRACTICES OR V IO LA TIO N S
OF LAW OR REGULATIONS, 1936-1 975

D isposition or status

T o ta l banks against w h ic h actio n was ta k e n ..................................................................................................

1 9 3 6 -1 9 7 5 1

Started
during 1975

229

5

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

225

C orrections m a d e ......................................................................................................................................
Banks absorbed or succeeded by o th e r banks ................................................................................
W ith financial aid o f the C o rp o ra tio n ..........................................................................................
W ith o u t financial aid o f the C o r p o r a tio n ...................................................................................
Banks suspended p rio r to setting date of te rm in a tio n of insured status by C o rp o ra tio n .. .
Insured status te rm in a te d , o r date fo r such te rm in a tio n set by C orporation fo r failure
to make corrections ..................................................................................................................
Banks suspended p rio r to or on date o f te rm in a tio n o f insured s t a t u s .............................
Banks co n tin u e d in o p e ra tio n ? ......................................................................................................
Form al w ritte n c o rrective program imposed and 8(a) a ction d is c o n tin u e d .............................
Cease-and-desist order issued and 8(a) action d is c o n tin u e d ........................................................

98
75
66
9
37

Cases closed

13
9
4
1
1

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

4

4

A c tio n deferred pending co m p le tio n of c o rre ctio n period, reexam ination o f the bank,
o r an analysis o f its m ost recent re p o rt of e x a m in a tio n ...................................................

4

4

Cases n o t closed Decem ber 3 1 ,1 9 7 5

1No action to term inate the insured status of any bank was taken before 1936. In 5 cases where in itia l action was replaced by action
based upon ad d itio n a l charges, o nly the last action is included.
2 0 n e o f these suspended 4 m onths a fte r its



insured status was term inated.

18

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

entered into by consent, it may be appealed to the appropriate
United States Court of Appeals. Thirteen such cease-and-desist
orders against insured State nonmember banks were outstanding at
the beginning of 1975, six of which were terminated during the
year. Seven additional proceedings were initiated by the Corpora­
tion in 1975 and culminated in the entry of cease-and-desist orders.
One other proceeding, which was outstanding at year-end and pend­
ing before the Corporation's Board of Directors after completion of
an administrative hearing, also resulted in the issuance of a ceaseand-desist order. Accordingly, 15 such orders were outstanding at
year-end 1975 (table 8).

Table 8. CEASE-AND-DESIST ORDERS AND ACTIONS TO CORRECT SPECIFIC UNSAFE
OR UNSOUND PRACTICES OR VIO LA TIO N S OF LAW OR REGULATIONS, 1975
Total actions taken: 197 1 -1 97 5 ................................................................................................................................

42

Cease-and-desist orders issued in 197 5 1.................................................................................................................

8

Cease-and-desist orders d is c o n tin u e d ............................................................................................................................................
Cease-and-desist orders outstanding as of D ecem ber31, 1975 ..............................................................................................

6
15

1The F D IC 's a u th o rity to issue cease-and-desist orders was added in 1966 (12 U.S.C. 1818(b)). The firs t use of this a u th o rity
occurred in 1971.

The Corporation also has the statutory authority under section
8(g) of the Federal Deposit Insurance Act to initiate proceedings
for the suspension or removal of officers, directors, and other
persons participating in the management o f insured State non­
member banks who are charged with committing or participating in
a felony involving dishonesty or breach of trust, in any information,
indictment, or complaint authorized by a United States attorney.
Six such proceedings resulted in suspension or removal during 1975.
Fifteen other individuals charged with felonies involving dishonesty
or breach of trust voluntarily resigned or suspended themselves
from their positions with insured State nonmember banks following
indications that the Corporation might initiate suspension or re­
moval proceedings against them.
One removal proceeding not based on a prior felony prosecution
was initiated by the Corporation in 1975 under section 8(e) of the
Federal Deposit Insurance Act, resulting in a summary suspension
of the individual involved. A challenge of this suspension is pres­
ently before a United States District Court, while the removal
proceeding remains pending following conclusion of the adminis­
trative hearing.
The constitutionality of certain of the removal sections of the
Federal Deposit Insurance Act has been challenged in an action
presently awaiting further determination by a three-judge panel of
the
United States District Court for the District of Columbia.



S U P E R V IS O R Y A C T IV IT IE S

19

Problem banks. The number of problem banks increased dramat­
ically in 1975 from 183 insured banks listed at year-end 1974 to
349 at year-end 1975. Both figures include national banks and State
member banks as well as the State nonmember banks the FDIC
regularly examines, and most were listed because of loan portfolio
weaknesses which were significantly aggravated by the effect of the
1974-75 recession on many bank borrowers. One hundred sixteen
of the listed banks, compared with 54 the prior year, were con­
sidered to present serious cause for supervisory concern, but almost
100 o f these were relatively small banks with less than $50 m illion
in total deposits. The total deposits o f these 116 banks were $5.3
billion at the close of 1975, compared with $4.8 billion at the close
of 1974.
Investor protection. Under the Securities Exchange Act of 1934,
the Corporation exercises all "the powers, functions, and duties"
otherwise vested in the Securities and Exchange Commission "to
administer and enforce" the registration, company-reporting, and
related provisions of that Act with respect to insured nonmember
banks. These provisions are applicable to banks with more than $1
million in assets and 500 or more holders of any class of equity
security. Under these provisions and the Corporation's regulations
thereunder, such banks are required to file an initial registration
statement, periodic reports (annually, semiannually, and quarterly),
and special reports concerning any material event which occurs.
Any matter presented for a vote of security-holders must be effec­
tuated through a proxy statement complying with the Corpora­
tion's regulations, and where directors are to be elected, the proxy
statement must be accompanied or preceded by an annual report
disclosing the financial condition of the bank. Officers and directors
of a bank whose securities are registered and any person or related
group of persons holding more than 5 percent of such securities
must report their holdings and any changes which occur to the
Corporation.
All required statements and reports filed with the Corporation
under the Securities Exchange Act are public documents. All such
statements and reports are available for inspection at the Corpora­
tion's headquarters and copies of registration statements and
company reports, proxy statements, and annual reports to share­
holders are also available at the New York, Chicago, and San Fran­
cisco Federal Reserve Banks, as well as at the Reserve Bank of the
district in which the bank filing the report is located.
During 1975, the Corporation received securities registration
statements from 37 banks, bringing the year-end total o f registered
nonmember banks to 321 compared to 290 a year earlier. Addi­
tions included one registered bank that withdrew from the Federal
Reserve System and two banks that converted from national to




20

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

State charter. Termination o f the registration of nine banks resulted
primarily from their merger into other operating banks or their
acquisition by bank holding companies.
On June 4, 1975, Congress passed the Securities Acts Amend­
ments of 1975 which significantly revised the Securities Exchange
Act of 1934. Among other things, the Amendments impose, for the
first time, registration requirements and a scheme of Federal regula­
tion upon municipal securities dealers and transfer agents, including
banks that act in those capacities. Both the Securities Exchange
Commission and the Corporation have responsibilities for enforcing
compliance with the newly enacted provisions. As of December 31,
1975, 44 State nonmember banks (or separately identifiable depart­
ments or divisions of such banks) had registered as municipal secur­
ities dealers with the Securities and Exchange Commission and 419
State nonmember banks had registered as transfer agents with the
Corporation.
Consumer protection. The FDIC is responsible for administrative
enforcement of the Truth in Lending Act, the Fair Credit Reporting
Act, the Real Estate Settlement Procedures Act, the Fair Credit
Billing Act, and the Equal Credit Opportunity Act insofar as they
affect insured nonmember banks.
The Truth in Lending Act requires creditors to disclose the cost
and other terms o f consumer credit in a prescribed manner and at
specified times so that consumers may shop for the best credit
terms and make sound judgments regarding the use of consumer
credit.
The Fair Credit Reporting Act requires creditors to make certain
disclosures when information in a credit report from a consumer
reporting agency or obtained from a third party contributes to a
denial or to an increase in the cost of consumer credit. These dis­
closures are designed to enable consumers to seek out and correct
erroneous information regarding their credit standing.
The Real Estate Settlement Procedures Act of 1974, which
became effective in June 1975, was designed to protect consumers
from exorbitant or last-minute settlement charges by providing for
the disclosure to prospective home buyers of settlement and credit
costs prior to the actual settlement date. In this regard, Regulation
X of the Department of Housing and Urban Development, which
implements the Act, requires banks to use certain standardized
forms and perform various details of the transaction in a specified
manner and within specified time limits. In December 1975, the
advance-disclosure requirements of the law were substantially
modified.
The Fair Credit Billing Act, which is a new part of the Truth in
Lending Act, is designed to help consumers resolve credit billing
disputes promptly and fairly. The Act prohibits certain practices




S U P E R V IS O R Y A C T IV IT IE S

21

deemed unfair to consumers using credit cards or other open-end
accounts and certain practices between credit card issuers and retail
merchants deemed to be anticompetitive.
The Equal Credit Opportunity Act, as originally enacted in 1974,
has been implemented by the Federal Reserve's Regulation B. The
Act is intended to make credit available to all credit-worthy cus­
tomers regardless of sex or marital status. The provisions of Regula­
tion B include requirements for using specific terminology in taking
applications and for prohibiting the consideration of certain dis­
criminatory factors in the decision to grant or deny credit to an
applicant.
Checks for compliance with these laws are a routine part of the
bank examination program for State nonmember banks conducted
by FDIC examiners.
Office o f Bank Customer Affairs. The creation o f a separate unit
within the Corporation to "receive and take appropriate action"
upon complaints of "unfair or deceptive acts or practices. . . by
banks" was required by Public Law 93-637 which was signed into
law on January 4, 1975. Accordingly, in April 1975, the Corpora­
tion's Board of Directors created the Office of Bank Customer
Affairs which reports directly to the Board of Directors and serves
as a focal point within the FDIC for protecting the legitimate
interests of bank customers. The Office will receive and dispose of
all bank customer complaints and inquiries, and will make recom­
mendations to the Board o f Directors regarding the Corporation's
policies and activities in bank customer affairs.
Changes in bank ownership and loans secured by bank stock.
Any change in the ownership of an insured bank's outstanding
voting stock that results in a change of control o f the bank must be
reported to the appropriate Federal bank supervisory agency.
Section 7 of the Federal Deposit Insurance Act, as amended, re­
quires also that a report be filed whenever any insured bank makes
a loan secured by 25 percent or more of the outstanding stock of a
bank (except stock held for more than 1 year or for newly organ­
ized banks). Banks must report any change or replacement of the
bank's chief executive officer or of any director that occurs during
a 12-month period following the change in control. The Corpora­
tion received 437 notices of changes in control involving insured
nonmember banks during 1975.
Bank security. The Corporation was given responsibility, under
the Bank Protection Act of 1968, for banks under its general super­
vision for establishing minimum standards for the installation, main­
tenance, and operation of security devices and procedures to
discourage certain external bank crimes, and to assist in apprehend­
ing persons who commit those crimes. Under section 326.5 of the
Corporation's rules and regulations, as amended, each nonmember




22

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

insured bank is required to submit compliance reports as o f the last
business day of June of each calendar year, and to submit crime
reports following the perpetration of a robbery, burglary, or non­
bank employee larceny. During 1975, the Corporation received
1,203 crime reports filed pursuant to section 326.5(d) of its regula­
tions.
Supervisory and other training activities. The Corporation's
formal programs for bank examiners include various courses at the
levels of trainee, assistant examiner, senior assistant examiner, and
commissioned examiner. Two sessions of a newly designed course
involving in-depth training in automation techniques were con­
ducted in 1975.
Approximately 1,100 examiners from the Corporation, State
banking departments, and foreign central banks participated in
programs of the Bank Examination School during 1975. This
number, which includes approximately 150 examiners from State
banking departments participating under a join t program with the
Conference of State Bank Supervisors, was about the same as in
1974. Examiners enrolled in training courses outside the Corpora­
tion include 75 in graduate and specialized banking schools, and
others at the American Institute of Banking and in miscellaneous
programs sponsored by Government agencies and private organiza­
tions.
During 1975, the Office of Education and Publications coordi­
nated a large number of training programs for Corporation em­
ployees at all levels and had special responsibility for administering
the agency's tuition reimbursement policy. This liberal policy,
revised and updated in 1972, provides financing for approved
courses that help renew and update the skills of technical and pro­
fessional personnel in the headquarters and regional offices. Courses
include those offered by private industry, colleges and universities,
technical courses, management and supervisory courses, clerical
programs, and courses offered by the Civil Service Commission and
other Government agencies.
Research and statistics. During the year, the Corporation joined
with the other Federal bank supervisory agencies in making exten­
sive revisions in the formats of the Report of Condition and the
Report of Income which are submitted periodically by insured
banks to the agency that examines them. The revisions, which re­
lated both to the items of information submitted and the frequency
of reporting, are intended to result in more meaningful and timely
information for bank supervisors, shareholders, depositors, and the
general public and will be used for the first time for the March 31,
1976 reports.
The Corporation's Division of Research conducted a survey of
accounts and deposits in all commercial and mutual savings banks as




S U P E R V IS O R Y A C T IV IT IE S

23

of June 30, 1975. The survey gathered information for each bank­
ing office on numbers of deposit accounts, as well as deposit vol­
ume in different types and sizes o f accounts. In August, the Division
conducted a special survey of holdings of New York City obliga­
tions by insured nonmember banks. Other surveys obtained infor­
mation about trust assets of insured commercial banks, mortgage
rates and mortgage lending by banks, interest rates paid on savings
and time deposits, and income and deposit flows of mutual savings
banks. A sample survey of interest rates charged by insured com­
mercial banks on selected types of loans was discontinued in
October 1975. Results of most of these surveys are released in
FDIC or other Government publications.
During 1975, the Corporation and the American Bankers
Association join tly introduced a new version (BankSim) of the bank
management simulation which has been in use at several graduate
schools of banking for the past few years. BankSim, which is made
available to private sector users by the American Bankers Associa­
tion, is expected to be employed widely in the training programs of
individual banks and other groups, including local chapters of the
American Institute of Banking and the Corporation's training
center.
"Working Papers" prepared during 1975 by staff members of the
Division of Research are listed below. These papers are not to be
construed as official Corporation publications. The analytical tech­
niques used and the conclusions reached are the responsibility of
the author and in no way represent a policy determination endorsed
by the Federal Deposit Insurance Corporation.
W o rk in g
Paper N u m b e r

75— 1

"Aggregating Over Motives in the Demand fo r Money — A U n i­
fied A pp ro a ch ," by Stephen A . Buser.

75— 2

"D iscrim in a n t Analysis: A p plication, Potential, and P itfa lls," by
Robert A. Eisenbeis.

75— 3

"Com m ercial Bank Pricing and Local Market Power and S truc­
tu re ," by Alan S. McCall and Douglas M errill.

75— 4

"M a rke t Structural Developments in Foreign Banking: Im plica­
tions fo r Regulatory P o lic y /' by Gary G. G ilbert.

75— 5

"Characteristics o f Retail Electronic Funds Transfer Systems in
the United S ta te s/' by David A. Walker.

7 5 -6

"E ffe cts of Regulators and Electronic Banking Machines on
Bank Operating Characteristics," by David A . Walker and David
J. Bell.

75— 7

"Influences of Financial Characteristics on Bank Stock Prices
and Merger A c tiv ity ," by David A. Walker.




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

24

W o rk in g
Paper N u m b e r

75— 8

''Financial Management in Banks and Bank Holding C om ­
panies/ 7 by W illiam A. Longbrake.

75— 9

"T he Performance of Foreign Banks in the United States: Im p li­
cations fo r Federal R eg u la tio n /' by Gary G. Gilbert.

75— 10

"F ra n k lin National Bank of New Y o rk: A P ortfolio and Per­
formance Analysis o f our Largest Bank Failure," by Joseph F.
Sinkey, Jr.

75— 11

"N e w Congressional Restraints and Federal Reserve Independ­
ence," by Edward J. Kane.

75— 12

"D eposit-lnterest Ceilings and Sectoral Shortages o f Credit:
How to Improve Credit A llocation W ith o u t A llocating C re d it,"
by Edward J. Kane.

75— 13

"G ood Intentions and Unintended Evil: The Case Against
Government Credit A llo c a tio n ," by Edward J. Kane.

75— 14

"Com m ercial Bank Capacity to Pay Interest on Demand De­
posits Part I: Principal Issues," by W illiam A. Longbrake.

75— 15

"Com m ercial Bank Capacity to Pay Interest on Demand De­
posits Part 11: Earnings and Cost A nalysis," by W illiam A. Long­
brake.

Since 1969, the Corporation has awarded several fellowships each
year for the purpose of promoting banking research as part of a
program to improve and expand the information available to the
bank supervisory agencies and the banking community. Selection for
these awards is based on the assessment of the importance of the
proposed research, the relevance of the research to the interests of
the Corporation, and the ability of the applicants to complete their
projects successfully and within the time covered by the fellow­
ships. During 1975, the Corporation awarded fellowships to 4
Ph.D. candidates, bringing the total number of such awards to 26
since the initiation of the program.
ADMINISTRATION OF THE CORPORATION
Structure and employees. Membership of the Corporation's
Board of Directors continued unchanged during 1975. Chairman
Frank Wille and Director George A. LeMaistre, whose terms of
office are for 6 years, took office on April 1, 1970 and August 1,
1973, respectively. Comptroller of the Currency James E. Smith, an
ex officio member of the Board, began a 5-year term of office on
July 5, 1973.




25

A D M IN IS T R A T IO N OF T H E C O R P O R A T IO N

Corporation officials, Regional Directors, and Regional Offices
are listed on pages v and vi.
Total year-end employment o f the Corporation was 466 more
than in 1974, including 247 additional nonpermanent employees
serving on short-term appointment or on a when-actually-employed
basis (table 9). Increases in the Division of Bank Supervision and
the Division of Liquidation accounted for almost 9 o f every 10
additional Corporation employees in the year. About 87 percent of
Bank Supervision personnel, and 70 percent of Liquidation per­
sonnel, were assigned to Regional or other field offices at the end of
the year. Employees in some other divisions and offices were
affected by certain organizational changes during 1975.
Reorganization. On January 1, 1975, the Board of Directors
created the Office of Corporate Planning, to be a part of the Execu­
tive Offices. This office was staffed by employees formerly assigned
to the Division of Research and the Division of Bank Supervision.
Functions of this office, which reports directly to the Chairman and
the Board of Directors, include the coordination of divisional plan­
ning efforts, and recommendations for consideration by the Board
of Directors concerning planning priorities and related matters.
On July 1, 1975, the Board of Directors established the Office of
Corporate Audits, separating the function from the Office of
Management Systems and Financial Audits, the latter to be re­
named the Office of Management Systems. Creation of the Office
of Corporate Audits reestablished the Corporation's internal audit­
ing function as a separate and independent operation, with direct
reporting responsibility to the Chairman and the Board of Direc­
tors. The Office of Corporate Audits has the responsibility for
making continuous and independent audits and evaluations of all
functions relating to the Corporation's fiscal and accounting activi­
ties, systems of internal fiscal controls, liquidations of closed
insured banks and related activities, electronic data processing
operations, and any other audits of activities and operations as
directed by the Board of Directors.
Table 9. NUMBER OF OFFICERS AND EMPLOYEES
OF THE FEDERAL DEPOSIT INSURANCE CORPORATION, DECEMBER 31, 1974 AN D 1975
W ashington
office

T otal

Regional and other
fie ld offices

U n it

T o ta l ...............................................................
D ire c to rs ...................................................
Executive O f f ic e s ..................................
Legal D iv is io n .........................................
Division of Bank S upervision...............
Division o f L iq u id a tio n ........................
Division of R ese arch .............................
O ffice o f the C o n tro lle r........................
O ffice o f M anagement S yste m s..........
O ffice o f C orporate A u d it s .................

1975

1974

1975

1974

1975

1974

3 ,2 7 4 *

2 ,8 0 8 *

971

775

2,303

2,033

3
51
83
2,282
423
85
219
109
19

3
39
78
2,054
233
91
193
117
0

3
51
72
300
128
85
204
109
19

3
39
70
191
85
91
179
117
0

0
0
11
1,982
295
0
15
0
0

0
0
8
1,863
148
0
14
0
0

^Includ e s 508 nonperm anent em ployees on short term app o in tm e n t or when actually em ployed in 1975, and 261 in 1974.
IM onpermanent employees include college students p a rticip a tin g in the w o rk-stu d y program , clerical w orkers em ployed on a
te m p ora ry basis at banks in process o f liq u id a tio n , and oth e r personnel.




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

26

FINANCES OF THE CORPORATION
Assets and liabilities. Assets of the Corporation at the end of
1975 totaled $8.3 billion (table 10). More than three-fourths of this
amount was U.S. Government obligations, which are valued on an
Table 10. STATEMENT OF F IN A N C IA L CONDITIO N,
FEDERAL DEPOSIT INSURANCE CORPORATION,
DECEMBER 31, 19751
(In thousands)

ASSETS
$
U.S. Government obligations:
Securities at am ortized cost (face value $6,3 7 6 ,1 7 7 ; cost $6 ,3 5 8 ,0 0 6 ):
U.S. Treasury b i ll s ...............................................................................................................
O ther U.S. G overnm ent s e c u ritie s ..................................................................................

$

17,359

114,742
6,251,348

$6,366,090
A ccrued interest re c e iv a b le ......................................................................................................
Assets acquired in receivership and deposit assumption transactions:
Subrogated claims o f depositors against closed insured b a n k s .......................................
Net insured balances o f depositors in closed insured banks, to be subrogated
when p a id -see related lia b ility .......................................................................................
E q u ity in assets acquired under agreements w ith insured banks2 ..................................
Assets purchased o u t r ig h t .................................................................................. .....................

106,204

$

6,472,294

65,686
900
1,790,443
4,477

$1,861,506
Less reserves fo r losses .............................................................................................................
Notes purchased to fa c ilita te deposit assum ption:
P rincipal3 ................................................................................................................................
A ccrued interest receivable.................................................................................................
Assistance to operating insured banks:
P rincipal4 .....................................................................................................................................
Accrued interest re c e iv a b le .....................................................................................................

$

$

213,150

1,648,356

163,000
3,518

166,518

37,000
1

37,001

Miscellaneous a s se ts ...........................................................................................

1,645

Land and office building, less depreciation on b u il d in g ..........................................

6,688

Total assets..........................................................................................

$8,349,861

L IA B IL IT IE S A N D DEPO SIT IN S U R A N C E FUND
Accounts payable and accrued liabilities................................................................

$

4,053

Earnest money, escrow funds, and collections held for o t h e r s .................................

2,137

Accrued annual leave of e m p lo y e e s......................................................................

3,359

Due insured banks:
Net assessment incom e credits available July 1, 1976 (see table 12) ........................
O th e r...............................................................................................................................................
Liabilities incurred in receivership and deposit assumption transactions:
Federal Reserve Bank indebtedness:
Notes payable.........................................................................................................................
A ccrued interest payable5. .................................................................................................

$

362,428
1,098

3 63,526

$1,125,000
134,847

1,259,847

Net insured balances of depositors in closed insured banks-se e related a sse t.............

900

Total lia b ilitie s....................................................................................

$1,633,822

Deposit insurance fund, net income accumulated since inception (see table 1 1 ).........
Total liabilities and deposit insurance fund

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

6,716,039
$8,349,861

1These statem ents:
a. Do not include a c co u n ta b ility fo r the assets and lia b ilitie s o f the closed insured banks fo r w hich the C orp o ra tio n acts as
receiver or liq u id a tin g agent.
b. Include transactions reflected in unaudited collection and disbursements reports fro m the liq u id a to r of F ra n klin N ational
Bank fo r the last quarter of 1975.
2 E q u ity in assets acquired under agreements w ith insured banks totaled $1,790 b illio n . O f this to ta l appro xim a te ly $ 1 ,125 b illio n
represents e quity in assets acquired as a result o f the closing o f Franklin National Bank on O ctober 8, 1974.
3 Notes purchased to fa c ilita te deposit assum ption: C rocker N ational C o rporation, $50,0 0 0 ,0 0 0 ; Southern B ancorporation, Inc.,
$8,00 0 ,0 0 0 ; European-Am erican Bank and T ru s t Co., $10 0 ,0 0 0 ,0 0 0 ; Clearing Bank, $ 1 ,500,000; Marine National Exchange Bank,
$3,500,000.
4 Assistance to operating insured banks: Bank o f the C om m onw ealth, $35,500,000, U n ity Bank and T ru s t Com pany, $ 1 ,500,000.
5 A ccrued interest payable o f $134.8 m illio n represents interest fo r 450 days at the rate of 7.52 percent simple interest per annum on
the unpaid principal am ount due on Fra n klin N ational Bank's indebtedness to the Federal Reserve Bank o f New Y o rk . This am ount
is subject to adjustm ent fo r certain o u t-o f-p o c k e t expenses incurred by the C orporation as provided fo r in the A greem ent o f Sale.




27

F IN A N C E S OF T H E C O R P O R A T IO N

amortized cost basis. About one-fifth of the total were assets ac­
quired in receivership and deposit assumption transactions, rep­
resenting mostly equity in assets held, less reserves, under agree­
ments with insured banks. The remaining assets consisted of cash,
assets acquired in transactions to assist operating insured banks,
land and the depreciated value of office buildings, and miscella­
neous assets.
The total liabilities of the Corporation at year-end were $1.6
billion. Nearly $1.3 billion of this total consisted of a note, includ­
ing accrued interest, held by the Federal Reserve Bank of New
York, which the bank acquired in giving financial assistance to
Franklin National Bank prior to the assumption of Franklin
National's liabilities in 1974 by European-American Bank & Trust
Company. The principal amount of this note had been reduced by
$598.5 million through payments by the Corporation by the end of
1975. The remaining liabilities consisted largely of assessment
credits due insured banks, virtually all of these becoming available
on July 1, 1976.
The deposit insurance fund, consisting of the accumulated net
income of the Corporation, totaled approximately $6.7 billion at
year-end 1975. The fund represents those financial resources
immediately available to the Corporation for the protection of
depositors. The Corporation is authorized, in addition, to borrow
up to $3 billion from the U.S. Treasury whenever such funds are
needed for insurance purposes, but it has never used this borrowing
authority.
Table 11. STATEMENT OF INCOME AND THE DEPOSIT INSURANCE FUND,
FEDERAL DEPOSIT INSURANCE CORPORATION,
YEAR ENDED DECEMBER 31, 1975
(In thousands)

Income from operations:
Deposit insurance assessments:
Assessments earned during 1975
Less net assessment incom e credits to insured b a n k s ..............................................................

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

$

640,915
362,304

$

278,611

$

278,929
390,558
3,752
45
15,720
304

$

689,308

$

67,688

Adjustm ents to assessments earned in p rio r p e r io d s .....................................................................

318

Interest on U.S. Governm ent s e cu ritie s.............................................................................................
Discounts earned on U.S. Governm ent securities............................................................................
P ro fit on sale o f U.S. Governm ent s e cu ritie s...................................................................................
Interest on capital n o te s .......................................................................................................................
O ther in c o m e ..........................................................................................................................................
Total income from o pe rations

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

Operating expenses and losses:
A dm in istra tive and operating expenses
Provision fo r insurance losses
Less adjustm ents to provisions made in p rio r p e r io d s

..........................................
...................................................
..............................
Nonrecoverable insurance expenses incurred in protecting d e positors .................
Total operating expenses and losses ................................
Net incom e-addition to the deposit insurance fun d ..................................

$

32,577
4,958

27,619
2,152
$
$

97,459
591,849

Deposit insurance fu n d-January 1, 1 9 7 5 ........................................................................

6,124,190

Deposit insurance fund-D ece m be r 31,1975, net income accumulated since ince ption.........

$6,716,039




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

28

Table 12. D ETE R M IN A TIO N AND DISTR IBU TIO N OF
NET ASSESSMENT INCOME,
FE D E R AL DEPOSIT INSURANCE CORPORATION,
YEAR ENDED DECEMBER 31, 1975
(In thousands)
D e te rm ina tion o f net assessment incom e:
T o ta l assessments th a t became due during 1 9 7 5 .......................................................................
Less:
A d m in is tra tiv e and operating e xp e n se s.................................................................................
N et a d d itio n s to reserve to provide fo r insurance losses:
Provisions applicable to banks assisted in 1975 ...........................................................
Less a d justm ents to provisions fo r banks assisted in p rio r ye a rs .............................

$640,915

$ 6 7,688
$ 32,577
4,958

27,619
2,152

Nonrecoverable insurance expenses incurred to p ro te c t d e p o s ito rs -n e t...........................
T o ta l d e d u c tio n s .......................................................................................................

$ 97,459

N et assessment incom e fo r 1975 .........................................................................................................

$5 4 3 ,4 5 6

D is trib u tio n o f net assessment incom e, Decem ber 3 1 ,1 9 7 5 :
N et assessment incom e fo r 1975:
33 1/3% transferred to the deposit insurance f u n d ...........................................................
66 2/3% cred ite d to insured b a n k s ........................................................................................

$ 181,152
3 6 2,304

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

$54 3 ,4 5 6
Percentage of
to ta l assess­
m e n t becom ing
due in 1975

A llo c a tio n o f n e t assessment incom e c re d it am ong insured banks, December 3 1 ,1 9 7 5 :
C redit fo r 1975 ..................................................................................................................................
A dju s tm e n ts o f cre dits fo r p rio r y e a r s ........................................................................................

$3 6 2 ,3 0 4
124

56.529%
.020

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

$ 3 6 2,428

56.549%

Income and expenses. The Corporation's income in 1975
amounted to $689.3 million. Net income from assessments, which
is gross assessments earned less assessment credits granted to insured
banks, amounted to $278.9 million (tables 11, 12, and 13). Except
for interest of $15.7 million on capital notes outstanding, virtually
all of the remaining income was derived from the Corporation's
holdings of U.S. Government securities.
Table 13. SOURCES AN D APPLICATION OF FUNDS,
FED ER AL DEPOSIT INSURANCE CORPORATION,
YEAR ENDED DECEMBER 31, 1975
(In thousands)
Funds p rovided b y :

Percent

N et d eposit insurance assessm ents.......................................................................................................
Incom e fro m U.S. G overnm ent securities, less am ortized net d is c o u n ts ..................................
M a tu ritie s and sales o f U.S. G overnm ent s e c u r itie s .......................................................................
C ollections on assets acquired in receivership and deposit assum ption tra n s a c tio n s ............
Increase in assessment credits due b a n k s ...........................................................................................
Incom e fro m capital n o te s ......................................................................................................................
T o ta l fun ds provided ....................................................................................................

$

278,929
390,558
1,723,976
733,855
73,262
15,720

8.7
12.1
53.6
22.8
2.3
0.5

$ 3 ,2 1 6 ,3 0 0

100.0

Funds applied to :
A d m in is tra tiv e , opera ting, and insurance expenses, less m iscellaneous c r e d its ......................
A c q u is itio n o f assets in receivership and deposit assum ption tra n s a c tio n s .............................
Purchase o f U.S. G overnm ent se c u ritie s .............................................................................................
N et changes in o th e r assets and lia b ilitie s ...........................................................................................
T o ta l fu n d s applied




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

$

6 9 ,400
92 1 ,5 9 6
2 ,211,895
13,409

2.2
28.6
68.8
0.4

$ 3 ,2 1 6 ,3 0 0

100.0

29

F IN A N C E S OF T H E C O R P O R A T IO N

IN C O M E , E X P E N S E S A N D L O S S E S ,
A N D A D D IT IO N S TO THE D E P O S IT IN S U R A N C E FUND

C hart I

FEDERAL DEPOSIT IN SU RAN C E CORPORATION,
1 9 5 0 -1 9 7 5
Millions
o f dollars

Millions
of dollars

600

/
•

.*

• ✓S

.

/

/

/

•
/

/

//

500

/

ctAy rdtlM
c m oc to
rc

an d

— 300

lo sses
200

— 100

19 5 0 '51

'5 2

i

i

'5 3

'5 4

i

i

i

i

i

i

i

i

i

i

i

i

i

i

'5 5

'5 6

'57

'5 8

'5 9

'6 0

'61

'62

'6 3

'6 4

'6 5

'6 6

'67

'6 8

i

i

i

i

i

i

i

'69

'7 0

'71

'7 2

'7 3

'7 4

'75

Total operating expenses and losses in 1975 amounted to $97.5
million, a figure approximately 39 percent below the amount in
1974. The decrease in 1975 is attributable to a substantial net
reduction in the provision for loan losses— $27.6 million compared
with $97.9 million in the previous year. After deduction of ex­
penses and losses from operating income, the addition to the
deposit insurance fund for the year was $591.8 million.
Income and the deposit insurance fund. Income and expenses of
the Corporation and additions to the deposit insurance fund from
1934 through 1975, and the fund in relation to deposits in insured
banks, are detailed in accompanying tables (tables 14 and 15). For
the entire period since 1934, deposit insurance assessments have
provided somewhat over one-half of the Corporation's total income,
but in each year since 1961, net assessments have been exceeded by
interest on securities. Banks have paid assessments for deposit insur­
ance at a basic rate of 1/12 of one percent of total deposits (ad­
justed) since 1935; however, enactment of the Federal Deposit
Insurance Act in 1950 included a provision for an assessment credit
that would reduce substantially the net rate of assessment pay­
ments. It was provided initially that insured banks would receive
each year, as a credit against future assessments, 60 percent of the
difference between the Corporation's gross assessments earned and
its total administrative and operating expenses and provision for




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

30

Table 14. INCOME AND EXPENSES, FEDERAL DEPOSIT INSURANCE CORPORATION,
BY YEAR , FROM BEGINNING OF OPERATIONS, SEPTEMBER 11, 1933,
TO DECEMBER 31, 1975
(In millions)
Incom e

Interest
on capital
sto ck3

A d m in is­
trative
and
operating
expenses

Net
incom e
added to
deposit
insurance
fu n d 4

$995.3

$254.1

$80.6

$660.6

$6,716.0

97.5
159.2
108.2
59.7
60.3
46.0
34.5
29.1
27.3
19.9
22.9
18.4
15.1
13.8
14.8
12.5
12.1
11.6
9.7
9.4
9.0
7.8
7.3
7.8
6.6
7.8
6.4
7.0
9.9
10.0
9.4
9.3
9.8
10.1
10.1
12.9
16.4
11.3
12.2
10.9
11.3
10.0

29.8
100.0
53.8
10.1
13.4
3.8
1.0
.1
2.9
.1
5.2
2.9
0.7
0.1
1.6
0.1
0.2

T otal

$7,711.3

$4,039.4

$3,671.9

689.3
668.1
561.0
4 67.0
415.3
382.7
335.8
295.0
263.0
241.0
214.6
197.1
181.9
161.1
147.3
144.6
136.5
126.8
117.3
111.9
105.7
99.7
94.2
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

278.9
302.0
246.0
188.5
175.8
159.3
144.0
132.4
120.7
111.7
102.2
93.0
84.2
76.5
73.4
79.6
78.6
73.8
69.1
68.2
66.1
62.4
60.2
57.3
54.3
54.2
122.7
119.3
114.4
107.0
93.7
80.9
70.0
56.5
51.4
46.2
40.7
38.3
38.8
35.6
11.5

410.4
366.1
315.0
278.5
239.5
223.4
191.8
162.6
142.3
129.3
112.4
104.1
97.7
84.6
73.9
65.0
57.9
53.0
48.2
43.7
39.6
37.3
34.0
31.3
29.2
30.6
28.4
26.3
43.1
23.7
27.3
18.4
16.6
12.6
10.6
9.7
10.5
9.4
9.4
8.2
9.3
7.0

T otal

1975 ..........
1974 ..........
1973 ..........
1972 ..........
1 9 7 1 ..........
1970 ..........
1969 ..........
1968
1967 ..........
1966 . . .
1965
1964
1963
1962 .
1961
1960
1959
1958
1957
1956
1955
1954
1953
1952 . . .
1951
1950
1949
1948. . .
1947
1946
.
1945
1944
1943
1942
1941
1940
1939
1938
1937
1936
1935
1 9 3 3 -3 4 ..

Deposit
insurance
losses and
expenses

Deposit
insurance
assess­
m ents1

Year

1 9 3 3 -7 5 ..

Expenses and losses
Invest­
ments
and
o ther
sources2

(4 )

0.1
0.3
0.3
0.1
0.1
0.8
1.4
0.3
0.7
0.1
0.1
0.1
0.1
0.2
0.5
0.6
3.5
7.2
2.5
3.7
2.6
2.8
0.2

0.6
4.8
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.8
5.6

67.7
59.2
54.4
49.6
46.9
42.2
33.5
29.0
24.4
19.8
17.7
15.5
14.4
13.7
13.2
12.4
11.9
11.6
9.6
9.1
8.7
7.7
7.2
7.0
6.6
6.4
6.1
5.7
5.0
4.1
3.5
3.4
3.8
3.8
3.7
3.6
3.4
3.0
2.7
2.5
2.7
4 .2 5

591.8
508.9
452.8
407.3
355.0
336.7
301.3
265.9
235.7
221.1
191.7
178.7
166.8
147.3
132.5
132.1
124.4
115.2
107.6
102.5
96.7
91.9
86.9
80.8
76.9
77.0
144.7
138.6
147.6
120.7
111.6
90.0
76.8
59.0
51.9
43.0
34.8
36.4
36.0
32.9
9.5
- 3 .0

1 For th e period fro m 1950 to 1975, inclusive, figures are net a fte r deducting the p o rtio n o f net assessment incom e credited to
insured banks pursuant to provisions o f the Federal D eposit Insurance A c t of 1950, as amended. Assessment credits to insured
banks fo r these years am o unt to $4,055 m illio n .
in c lu d e s $12 m illio n of interest and allow able return received on funds advanced to receivership and deposit assum ption cases and
$28 m illio n o f interest on capital notes advanced to fa c ilita te deposit assum ption transactions and assistance to open banks.
3 Paid in 1950 and 1951, b u t allocated among years to w hich it applies. In itia l capital o f $289 m illio n was retired by paym ents to the
U.S. Treasury in 1947 and 1948.
A ssessm en ts collected fro m members of the te m p o ra ry insurance funds w hich became insured under the perm anent plan were
credited to th e ir accounts at the te rm in a tio n o f the tem p o ra ry funds and were applied tow ard paym ent o f subsequent assessments
becom ing due under th e perm anent insurance fu n d , resulting in no incom e to the C orporation fro m assessments during the
existence o f the tem p ora ry insurance funds.
5 N et a fte r deducting the p o rtio n o f expenses and losses charged to banks w ith d ra w in g fro m the tem porary insurance funds on June
30, 1934.

losses during the year. In 1961, the assessment credit was increased
to 66-2/3 percent of net assessment income. The effective rate of
net assessments in 1975 was 1/28 of one percent of total deposits
(adjusted) in insured banks.
Deposits in all insured banks at year-end 1975 totaled $876
billion, an estimated 65.0 percent of which were insured (chart J).
Evidently the rise of 2.5 percentage points from 1974 was due



F IN A N C E S OF T H E C O R P O R A T IO N

31

Table 15. INSURED DEPOSITS AND THE DEPOSIT INSURANCE FUND, 19 34-1975

Deposits in
insured banks
(in m illions)
T otal

Insured1

Percent­
age of
deposits
insured

$875,985
833,277
766,509
6 9 7,480
610,685
545,198

$569,101
520,309
4 6 5,600
419,756
3 7 4 ,5684
349,581

65.0%
62.5
60.7
60.2
6 1 .3 4
64.1

495,858
491,513
4 48,709
401,096
377,400

313,085
296,701
261,149
234,150
209,690

63.1
60.2
58.2
58.4
55.6

1964 ......................
1963 ......................
1962 ......................
1 9 6 1 ......................
1960 ......................

348,981
3 1 3 ,3 0 4 2
2 9 7 ,5483
281,304
260,495

191,787
177,381
170,2104
160,3 0 9 4
149,684

1959
1958
1957
1956
1955

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

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

1954 ......................
1953 ......................
1952 ......................
1 9 5 1 ......................
1950 ......................
1949
1948
1947
1946
1945

Year
(Dec. 31)

Deposit
insurance
fund
(in
m illions)
$6,716.0
6,124.2
5,615.3
5,158.7
4,739.9
4,379.6

Ratio of deposit
insurance fund toT otal
deposits

Insu red
deposits

.77%
.73
.73
.74
.78
.80

1.18%
1.18
1.21
1.23
1.274
1.25

4,051.1
3,749.2
3,485.5
3,252.0
3,036.3

.82
.76
.78
.81
.80

1.29
1.26
1.33
1.39
1.45

55.0
56.6
57 .24
57 .0 4
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

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

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

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

156,786
153,454
154,096
148,458
157,174

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 ......................
1 9 4 1 ......................
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

57,485
50,791
48,228
50,281
45,125
4 0 ,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
291.7

.79
.83
.79
.68
.68
.73

1.84
1.82
1.70
1.54
1.52
1.61

1975 ......................
1974 ......................
1973 ......................
1972 ......................
1 9 7 1 ......................
1970 ......................
1969
1968
1967
1966
1965

1939
1938
1937
1936
1935
1934

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

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

1 Figures estim ated by applying, to the deposits in the various types o f account at the regular call dates, the percentages insured as
determ ined fro m special reports secured fro m insured banks.
2 December 20, 1963.
3 December 28, 1962.
4 Revised.

primarily to the relatively large growth in savings deposits during
1975, compared with increases in other types o f deposit accounts
having a much lower average percentage of insurance coverage. It
may be noted that the 1975 estimate is based in part on infor­
mation obtained in the June 30, 1975 survey of deposits, while the
estimates for the preceding 3 years were based on comparable infor­
mation developed from the June 30, 1972 survey. The data indicate
that the ratio of the deposit insurance fund to total deposits in
insured banks continues to be quite stable, while a gradual decline is
continuing in the ratio of the fund to insured deposits.



32

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

Audit. Each year the financial transactions of the Corporation
are audited by the General Accounting Office. A continuous in­
ternal audit is provided by the Office of Corporate Audits (see
page 25).

D E P O S ITS IN IN SUR ED B A N K S ,
A N D THE D EP O S IT IN S U R A N C E FUN D,
1 9 5 0 -1 9 7 5

C h a rt J

Billions
of dollars

Billions
of dollars

9 0 0 --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- --------- g 00

8 0 0 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ -------------------------8 0 0

T O T A L D E P O S IT S
7 0 0 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------- 7 0 0
6 0 0 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------6 0 0

•**

5 0 0 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------- 5 0 0

4 0 0 -------------------------------------------------------------------------------------------------------------------------------------------------------------- . « * " * * * ------------------------------------------------------------------------------------------- 4 0 0
3 0 0 --------------------------------------------------------------------------------------------------------------------------- . . ♦ * * * --------------------------------------------- -------------------------------------------------------------------------------- 3 0 0

•

200

••***

---------------- >t. ‘ .............. ............................------------------------------------------------- ---- 200
______
______________________ IN S U R E D D E P O S IT S

1 0 0 ----------•

" " ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ -------------- 100

0. i■
■
i— i r. i ™i— i i i i— i— i— i— i— i— i— i— r~ ■
i — ni— i— i i i— 0
*

D E P O S IT IN S U ^ A N C E ^ F U N D ___ ^

°

0— I— I— hH— I— I— I— I— I— h— I— I— I— h-H— I— I— I— I— I— I— I— I— I— I— I— 0
1950 ’S I

'52

'53




'54

'55

'56

'57

'58

'59

'GO '61

'62

'63

'64

'65

'66

'6?

'68

'69

'70

'71

'72

'73

'74

'75

f

\

MERGER DECISIONS OF THE CORPORATION
PART TWO

v




J




BANKS IN V O L V E D IN ABSORPTIONS APPROVED BY
THE FE D E R A L DEPOSIT INSURANCE CORPO RATIO N IN 1975
S tate

T o w n o r C ity

Alabama

Arab

Marshall C ounty Bank (in organiza­
tio n ; change title to The Bank
o f Arab)
117
The Bank of Arab
117

California

Inglewood

Centinela Bank (change title to
Tokai Bank of C alifornia)
Tokai Bank of C alifornia
United California Bank
Southern California F irst National
Bank
The Bank of T o k y o o f C alifornia

Los Angeles
San Diego
San Francisco
Connecticut

Cromwell
H artford
M iddletown
N orth Canaan

Georgia

De Kalb C ounty
Tucker

B ank

35

Cromwell Savings Bank
State Bank fo r Savings
Farmers and Mechanics Savings
Bank
Canaan Savings Bank
The Citizens and Southern Emory
Bank
The Citizens and Southern Bank
o f Tucker

Page

73
73
41
77
77
62
102
62
102
105
105

Indiana

Goshen
Portland
Redkey
Wakarusa

Salem Bank and T ru st Company
The Peoples Bank
Union State Bank
Exchange State Bank

96
46
46
96

Iowa

Cumberland
Marion

The Cumberland Savings Bank
Farmers State Bank
M arlinn, Inc.
Houghton State Bank

59
81
81
59

The Citizens National Bank of
Minneapolis
The Ottawa C ounty Bank

110
110

Red Oak
Kansas

Kentucky

Minneapolis

Campbellsburg
Morganfield
New Castle

U niontow n
Maine

Bangor

84
48

50

Princess Anne

Exchange and Savings Bank of
Berlin
Bank o f Somerset

56
56

Boston

The First National Bank of Boston

72

South Portland

Massachusetts



84
48

Colonial Industrial Bank
United Canal Bank
Depositors T rust Company of
Portland
South Portland Bank & T rust
Company

Portland

Maryland

United Farmers Bank
Union Bank & Trust Company
Citizens Bank (change title
to United Citizens Bank
and Trust Company)
The Farmers Bank of U niontow n

Berlin

61
61
50

36

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

State

T o w n o r C ity

Michigan

Bay C ity

Frankenm uth

Mississippi

New Hampshire

Clarksdale
Grenada
Pontotoc
Tupelo
Concord
Hooksett
Laconia

Ohio

Coahoma National Bank
Grenada Bank
Bank o f Pontotoc
The Peoples Bank and T rust
Company

117
117

117
117
86
86

99
99
42
53

Dunellen
Manalapan
Township
New Brunswick
Union C ity

P eoples'Trust Company
Bank o f Manalapan

44

New Brunswick Trust Company
Hudson United Bank

88
44

New Y o rk C ity

Dry Dock Savings Bank
F ifth Avenue Savings and Loan
Association
Luxem bourg Branch of Bank o f
Boston International

58

Suncook

New Y o rk

Bay C ity Bank & T ru st Company
Manufacturers Bank o f Bay C ity
(in organization)
FBT Bank (in organization; change
title to Frankenmuth Bank &
Trust)
Frankenm uth Bank & T rust

Page

New Hampshire Savings Bank
The H ooksett Bank
C ity Savings Bank of Laconia,
New Hampshire
Colonial Trust Company
First Financial Bank (in organiza­
tion)
The Suncook Bank

Nashua

New Jersey

B ank

Kent
Wadsworth

Y ellow Springs

The C ity Bank
The Kent Bank (in organization)
The Citizens Bank & Trust
Company
The Wadsworth Bank (in organiza­
tion)
MDB Bank (in organization;
change title to The Miami
Deposit Bank)
The Miami Deposit Bank

42
93
93
53
88

58
72
117
117
118
118

117
117

Oregon

Portland

Security Bank o f Oregon
The Oregon Bank

Pennsylvania

A ltoona
Bala-Cynwyd
Coudersport

Mid-State Bank and T ru st Company 65
First Pennsylvania Bank, N. A.
112
The First National Bank of
Coudersport
82
The First National Bank of
Dushore
68
Keystone Bank
94
Commonwealth Bank and T rust
Company
82




Dushore
Lower Burrell
Muncy

64
64

B A N K A B S O R P T IO N S A P P R O V E D BY T H E C O R P O R A T IO N
S tate

T o w n o r C ity

Newfoundland
Philipsburg
Pittsburgh
Scranton
W illiam sport

B ank

The First National Bank of
Newfoundland
The First National Bank of
Philipsburg
Commercial Bank & T ru st
Company
Northeastern Bank of Pennsylvania
Northern Central Bank and Trust
Company

37
Page

39
65
94
39
68

Jackson

First-Citizens Bank and T rust
Company of South Carolina
First State National Bank

75
75

Tennessee

Cowan
Sewanee

The Bank of Cowan
Bank o f Sewanee

70
70

Texas

Austin

Burnet Road State Bank (in organi­
zation; change title to N orth
Austin State Bank)
N orth Austin State Bank
Citizens State Bank (in organiza­
tio n ; change title to First State
Bank)
First State Bank
New Jackson C ounty Bank (in
organization; change title to
Jackson C ounty State Bank)
The Jackson C ounty State Bank
B a n k o fA lm e d a
B rookfield State Bank (in organiza­
tio n ; change title to Bank o f
Almeda)
T w in C ity Bank
T w in C ity State Bank (in organiza­
tio n ; change title to T w in C ity
Bank)
American Bank of Commerce
N orth Laurent State Bank (in
organization; change title to
American Bank of Commerce)

South Carolina

Columbia

Crane

Edna

Houston

Texarkana

V icto ria

Verm ont

Brattleboro
Enosburg Falls
Johnson
W aterbury

Virginia




Charlottesville

Fairfax C ounty
Fredericksburg
Hopewell

First V erm ont Bank and Trust
Company
The Enosburg Falls National Bank
Sterling T rust Company
Bank o f W aterbury
Bank o f Virginia-Cavalier C ounty
(in organization)
Cavalier-County Bank
Bank of Virginia-Potom ac
Bank o f Virginia-Fredericksburg
Cavalier Central Bank & Trust
Company

117
117

118
118

117
117
117

117
117

117
117

117
90
99
99
90
117
117
98
98
118

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

38

T o w n o r C ity

S tate

Hopewell (Cont.)

N ew port News
N o rfo lk

S u ffo lk
Winchester

B ank

Page

C ity Bank o f Hopewell (in organiza­
tio n ; change title to Cavalier
Central Bank & Trust Company
Bank o f Virginia-Peninsula
Bank o f Virginia-Tidew ater (change
title to Bank of Virginia-Eastern)
First V irginia Bank o f Tidew ater
First V irginia Bank o f Nansemond
Bank o f Virginia-Shenandoah
(in organization)
Virginia Loan and T h rift Corpora­
tion

118
104
104
101
101
55
55

Other Areas
Belgium
V irgin Islands

Brussels
Charlotte Amalie,
St. Thomas

United C alifornia Bank S .A ./N .V .
V irgin Islands National Bank

41
112

BANKS IN V O L V E D IN ABSORPTIONS DEN IED BY
THE FE D E R A L DEPOSIT INSURANCE CORPO RATIO N IN 1975
C onnecticut

Chester

Chester Bank
Chester Savings Bank

119
119

New Hampshire

Jaffrey

Monadnock National Bank
Monadnock Savings Bank

121

Southern Oregon State Bank
Valley of the Rogue Bank

124
124

Oregon

Grants Pass
Rogue River

121

BANKS IN V O L V E D IN ABSORPTION D E N IA L REVERSED
BY THE CORPORATION IN 1975

Texas




Alice

First National Bank o f A lice
The Bank of South Texas

113
113

39

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Northeastern Bank o f Pennsylvania
Scranton, Pennsylvania

B a n k in g O ffic e s

R e so u rce s
(in
th o u sa n d s
o f d o lla rs

In
o p e ra tio n

T o be
operated

512,523

14

15

10,160

1

to merge with

The First National Bank o f Newfoundland
Newfoundland

Summary report by A tto rn e y General, October 9, 1974
T w o o f Northeastern Bank's offices are located w ith in 15 miles o f New­
foundland Bank, w ith no com petitive alternatives in the intervening area. Thus,
it appears that the proposed transaction w ould elim inate some existing com ­
petition. It does not, however, appear that concentration in commercial bank­
ing would be substantially increased in any relevant banking market.
The modest size o f N ewfoundland Bank and the nature of the com m unity
which it serves indicate that the proposed transaction w ould not eliminate
substantial potential com petition.
Therefore, we conclude that the proposed merger w ould not have a substan­
tial com petitive impact.
Basis fo r Corporation approval, January 29, 1975
Northeastern Bank of Pennsylvania, Scranton, Pennsylvania ("N o rth ­
e a s te rn "), a State nonmember insured bank w ith total resources of
$512,523,000 and total IPC deposits o f $410,847,000, has filed an application,
pursuant to section 18(c) and other provisions o f the Federal Deposit Insur­
ance A ct, fo r the Corporation's prior consent to merge under its charter and
title w ith The First National Bank o f Newfoundland, N ewfoundland, Penn­
sylvania ("F N B N ew foundland"), w ith total resources o f $10,160,000 and
total IPC deposits o f $8,834,000.* Northeastern, as an incident to the pro­
posed merger, would establish the sole office o f FNB N ewfoundland as a
branch. The resulting bank w ould have a to ta l o f 16 approved offices.
C om petition. Northeastern operates a total o f 14 offices: its main office and
4 branches in Lackawanna County, 5 branches in Monroe C ounty, and 4
branches in Luzerne County. It also has the necessary approvals to establish an
additional branch in Lackawanna County. Northeastern is the largest com m er­
cial bank operating in this three-county region o f northeastern Pennsylvania
(the Northeast Pennsylvania SMSA) although there are tw o other commercial
banks that also control area IPC deposits in excess o f $250 m illio n .
FNB N ewfoundland has its sole office in Newfoundland, a village o f some
450 inhabitants in southern Wayne County which is in the northeast corner o f

* Financial data are as o f June 30 , 19 74, adjusted fo r N ortheastern's subsequent merger
w ith The P ly m o u th N ation al Bank.




40

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

Pennsylvania adjacent to the New Y o rk State line. FNB Newfoundland draws
the bulk of its business fro m comm unities w ith in 15 road-miles of the village.
Its market comprises small sections o f Wayne, Pike, and Monroe Counties, a
sparsely populated area of wooded uplands located between the Moosic M oun­
tains to the northwest and the Pocono Mountains to the southeast. Dairy and
pou ltry farm ing are the principal income sources. The 1973 median household
buying levels o f Wayne C ounty ($7,472), Pike County ($8,406), and Monroe
County ($9,324) were all below the State average ($9,588).
The proposed merger w ould have its most immediate and direct im pact
w ithin FNB N ewfoundland's small local market consisting o f about 10,000
persons. Six commercial banks operate one office each in this market, w ith
their combined IPC deposits totaling $27.2 m illion. FNB Newfoundland has
the largest share o f these IPC deposits, 32.4 percent, closely follow ed by The
First National Bank o f Lake A riel, a u n it bank of approxim ately the same size
located 15 road-miles north o f Newfoundland. The th ird largest share of IPC
deposits in the market is held by a branch, 15 road-miles to the southeast o f
Newfoundland, o f the $62-mi I lion-1 PC-deposit Security Bank and T rust C om ­
pany, headquartered in Stroudsburg. Northeastern is one o f three other com ­
mercial banks on the fringes o f this small market, but its fa c ility at the T obyhanna Signal Corps Depot services only employees of the Depot. Northeastern
has tw o fu ll service branches in northern Monroe C ounty, located about 20
road-miles south and southwest of Newfoundland, but inform ation included
w ith the application indicates that neither bank draws a significant am ount o f
business from areas served prim arily by the other and th a t no significant e xist­
ing com petition between the tw o banks w ould be eliminated by their merger.
A commercial bank may legally branch de novo or merge in Pennsylvania
throughout the county in which its main office is located and in all counties
contiguous thereto. Northeastern, thus, may establish de novo offices in those
portions of Wayne and Monroe Counties w ith in FNB N ewfoundland's market,
expansion which w ould result in increased com petition between the tw o banks.
In view o f the low income levels th a t prevail and the low ratio o f inhabitants
per banking office (1,147 as compared w ith 4,220 th roughout Northeastern's
maximum 6 -county potential market), Northeastern would be u n like ly to
establish any additional offices in FNB Newfoundland's market. The latter
bank, in turn, has not branched de novo since it opened in 1926 and is un­
likely, given its size and management resources, to undertake such expansion in
areas served by Northeastern. Accordingly, it appears th a t no significant poten­
tial fo r increased com petition between the tw o banks through de novo branch­
ing in the future w ould be eliminated by th e ir merger.
W ithin the 6 -county region in which Northeastern may expand de novo or
by merger (its maximum potential market since Pennsylvania law does not
perm it the operation of m ultibank holding companies), a total o f 50 com m er­
cial banks now operate 167 offices, these offices holding IPC deposits aggre­
gating $2.5 billion. Northeastern has the largest share, 16.5 percent, of such
commercial bank IPC deposits but a lesser percentage (8.4 percent) of the
commercial bank offices in the region. Its merger w ith FNB N ewfoundland
would increase Northeastern's IPC deposit share in this m ulti-county region to
16.9 percent. Banks w ith the fo u r next largest shares would hold an aggregate
of 32.8 percent o f such deposits. This six-county region, thus, is not one of
substantial concentration and it appears that no significant e ffect on the



41

B A N K A B S O R P T IO N S A P P R O V E D BY T H E C O R P O R A T IO N

commercial bank structure of the region w ould result from the slight increase
in concentration w hich w ould occur because of the proposed merger.
Under these circumstances, the Board o f Directors is o f the opinion th a t the
proposed merger w ould not, in any section o f the country, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. The resulting bank
would have adequate financial and managerial resources. Its future prospects
would be satisfactory.
Convenience and Needs o f the C om m unity to be Served. No material change
in services presently available to customers o f Northeastern w ould result from
the proposed merger. Customers of FNB N ewfoundland, however, w ould have
available a broader range o f commercial bank services, including fu ll fiduciary
services, FH A and home im provement loan services, revolving, overdraft, and
credit card services, a greatly increased lending lim it, and a wider choice o f
deposit maturities.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.

R e so u rce s
(in
th o u sa n d s
o f d o llars)

United C alifornia Bank
Los Angeles, C alifornia

9,076,910

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

262

O ffic e s
T o be
operated

262

to a cq u ire the assets a n d assume
the d e p o s it lia b ilitie s o f

United C alifornia Bank S .A ./N .V .
Brussels, Belgium

65,864

1

Summary report by A tto rn e y General, November 21, 1974
The proposed transaction is sim ply a corporate reorganization and w ould
have no com petitive effect.
Basis fo r C orporation approval, February 11, 1975
United C alifornia Bank, Los Angeles, California ("U C B "), an insured State
bank and member of the Federal Reserve System having total assets o f
$9,076,910,000 and total deposits o f $7,066,463,000, has applied, pursuant to
section 18(c) and other provisions of the Federal Deposit Insurance A ct, fo r
the C orporation's prior consent to acquire the assets of and assume lia b ility to
pay deposits made in United California Bank S .A ./N .V ., Brussels, Belgium
(“ UCB B elgium "), a noninsured Belgian banking corporation having total assets
of $65,864,000 and total deposits o f $60,029,000.
The proposed transaction is in effect a corporate reorganization whose p ur­
pose is to change the legal form under which UCB conducts business in the
Belgian market. The transaction consummated, UCB w ould carry on essentially
the same business as has heretofore been conducted by UCB Belgium.



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

42

UCB acquired control o f UCB Belgium in 1969 and presently owns 99.9
percent o f its outstanding stock.
Com petition. It is evident th a t the proposed transaction would have no
effect on existing or potential com petition between UCB and UCB Belgium or
on the structure o f commercial banking in any relevant area.
Financial and Managerial Resources; Future Prospects. Such resources and
prospects are satisfactory fo r UCB. Financial resources o f UCB Belgium appear
to be acceptable, its managerial resources satisfactory. Future prospects o f
UCB Belgium appear to be more favorable as a branch o f UCB than if it were
to continue as a separate bank.
Convenience and Needs o f the C om m unity to be Served. The proposed
transaction w ould have no effect on the convenience and needs o f any p ortion
of UCB's markets in California. In UCB Belgium's market, the office o f UCB,
representing an $8 b illio n in s titu tio n , should provide a stronger attraction fo r
business than UCB Belgium has provided in the past.
Based on the foregoing, the Board o f Directors has concluded th a t approval
o f the application is warranted.

New Hampshire Savings Bank
Concord, New Hampshire

B a n k in g O ffic e s

R e so u rce s
(in
th o u sa n d s
o f d o ^ a rs)

In
o p e ra tio n

T o be
operated

164,994

5

6

14,093

1

to merge with

C ity Savings Bank of Laconia, New Hampshire
Laconia

Summary report by A tto rn e y General, August 19, 1974
New Hampshire Savings Bank is the dom inant financial in stitu tio n in M erri­
mack County. It holds approxim ately 51 percent of savings and tim e deposits
in county offices o f th r ift institutions (savings banks and savings and loan
associations) and 45 percent o f such deposits in county offices o f th r ift in sti­
tutions and commercial banks.
Merrimack C ounty is im m ediately south o f Belknap C ounty, where C ity
Savings Bank operates its sole office in Laconia. C ity Savings Bank holds
approxim ately 10 percent o f savings and tim e deposits in Belknap C ounty
offices of th r ift institutions and 9 percent o f such deposits in offices o f th r if t
institutions and commercial banks. Although New Hampshire Savings' offices
are 25 miles or more south of C ity Savings, New Hampshire Savings derives
some deposits and mortgages in the Laconia area and Belknap County. A l­
though the proposed transaction w ould eliminate some existing com petition, it
does not appear that concentration w ould be substantially increased in any
relevant market.
Therefore, we conclude that the proposed transaction would n o t have a
substantial com petitive impact.



B A N K A B S O R P T IO N S A P P R O V E D BY T H E C O R P O R A T I O N

43

Basis fo r C orporation approval, February 11, 1975
New Hampshire Savings Bank, Concord, New Hampshire ("N H S B "), an
insured mutual savings bank w ith total resources of $164,994,000 and total
deposits of $147,002,000, has applied, pursuant to section 18(c) and other
provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's p rio r
consent to merge w ith C ity Savings Bank o f Laconia, New Hampshire, Laconia,
New Hampshire ("C ity Savings"), an insured mutual savings bank w ith total
resources of $14,093,000 and total deposits of $12,746,000. The tw o in s titu ­
tions w ould merge under the charter and title o f NHSB. The tw o approved
offices of C ity Savings w ould become branches o f the resulting bank, increasing
the number of its approved offices to seven.
C om petition. NHSB operates a to ta l o f five offices: its main office and tw o
branches in Concord and one branch each in Pittsfield and C ontoocook. A ll
offices o f NHSB are located in Merrimack C ounty, in south central New Hamp­
shire, and most o f NHSB's deposit and loan business originates in th a t county.
C ity Savings has its sole office in Laconia (1970 population 14,888, down
2.6 percent from 1960). It derives almost all o f its deposit and loan business
from Belknap C ounty (1970 population 32,367, up 12 percent fro m 1960),
which is located adjacent to and northeast of Merrimack County. Laconia is
the only c ity in the county, and 70 percent of the county's w o rk force is
employed there. The 1973 median household buying level fo r Belknap C ounty
was $9,709, slightly over the median fo r the State as a whole.
The nearest offices o f NHSB and C ity Savings are 20 road-miles apart while
their principal offices are 27 road-miles apart. The tw o banks serve d iffe re n t
markets, there are no common depositors, and neither draws any meaningful
volume o f business from the county prim arily served by the other. The pro­
posed transaction therefore w ould not eliminate any significant existing com ­
petition between the tw o banks.
C ity Savings is the fo u rth largest of five th r if t institutions com peting in
Belknap C ounty and holds only 9.8 percent of their combined deposits. Since
NHSB is not presently located in Belknap C ounty, the structure o f th r ift
in stitu tion com petition there would be changed only to the e xtent th a t com ­
peting institutions w ould be faced w ith a stronger, more aggressive com petitor.
Under present New Hampshire law, a bank may branch de novo w ith in the
tow n o f its principal office, in contiguous towns, and elsewhere w ith in 15 miles
of its main office, subject to office protection; it may also merge w ith another
bank w ith in 30 miles o f its principal office. Thus, both banks are prohibited
from entering the other's market w ith a de novo branch. As to alternative entry
by merger, NHSB has selected the second smallest th r ift in stitu tio n in Belknap
C ounty, while realistically C ity Savings has few merger alternatives other than
one o f the more dom inant th r ift institutions already in Belknap County. The
Board concludes th a t no potential fo r increased com petition between the tw o
by means of de novo branching w ould be eliminated by their proposed merger,
and that the merger alternative proposed is procom petitive locally rather than
anticom petitive.
Statewide, NHSB would increase its share o f th r ift in s titu tio n deposits to
7.5 percent from its present 6.9 percent, and it w ould move from the th ird
largest th r ift in stitu tio n to the second largest. The largest such in s titu tio n in
the State w ould still have about $100 m illio n more in total deposits than
NHSB, w hile the th ird ranking th r ift in stitu tio n w ould be only $9 m illio n
smaller.



44

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

The Board of Directors, accordingly, is of the opinion th a t the proposed
merger w ould not, in any section o f the co untry, substantially lessen com peti­
tion, tend to create a m onopoly, or in any other manner be in restraint o f
trade.
Financial and Managerial Resources; Future Prospects. The financial and
managerial resources of NHSB and C ity Savings are satisfactory. The future
prospects o f C ity Savings are more favorable than if C ity Savings were to
continue operation as an independent bank. The resulting bank has favorable
prospects.
Convenience and Needs o f the C o m m u n ity to be Served. Customers of C ity
Savings w ould fin d a much broader range of services, including NOW accounts,
automated payroll plans, FHA and V A loans and on-line com puter capabilities,
a much higher lending lim it, and a more vigorous com petitive atmosphere as a
result of the merger.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.

Hudson United Bank
Union C ity, New Jersey

B a n k in g O ffic e s

R e so u rce s
(in
th o u sa n d s
o f d o lla rs)

In
o p e ra tio n

T o be
operated

191,961

11

12

10,022

1

to acquire the assets and assume
the deposit liabilities o f

People's T rust Company
Dunellen

Summary report by A tto rn e y General, December 24, 1974
We have reviewed this proposed transaction and conclude th a t it w ould not
have a substantial com petitive impact.
Basis fo r Corporation approval, February 11, 1975
Hudson United Bank, Union C ity, New Jersey ("H u d s o n "), a State non­
member insured bank w ith total resources of $191,961,000 and total IPC
deposits of $163,540,000, has applied, pursuant to section 18(c) and other
provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's p rio r
consent to acquire the assets of and assume the lia b ility to pay deposits made
in People's Trust Company, Dunellen, New Jersey ("P eople's"), w ith total
resources of $10,022,000 and IPC deposits of $8,089,000. The resultant bank
would be operated under the charter and title o f Hudson and, as an incident to
the acquisition, the sole office o f People's w ould become a branch o f Hudson
which w ould then have a total o f 11 authorized fu ll service offices and 2
lim ited service facilities.
C om petition. Hudson operates six offices in Hudson C ounty (population



B A N K A B S O R P T IO N S A P P R O V E D BY T H E C O R P O R A T I O N

45

609,266) and five offices in the southeastern po rtio n of Bergen C ounty (popu­
lation 897,148). In Essex C ounty (population 932,299) the bank has an
approved but unopened branch. These three counties are in eastern New Jersey
in close p ro x im ity to the Newark-New Y o rk C ity m etropolitan area w hich is
the major em ploym ent center in the area.
People's operates its sole office in Dunellen Borough (population 7,072) in
Middlesex C ounty (1970 population 583,813, up 34.6 percent fro m 433,856
in 1960). Middlesex C ounty is located in the north-central part o f New Jersey
and its 1973 household median income was about 8 percent higher than the
comparable figure fo r the State as a whole.
The proposed acquisition w ould have no perceptible effect in any area
presently served by Hudson. The impact of the proposed acquisition w ould be
largely confined to the affluent, growing trade area of about 73,000 persons
served by People's in and around Dunellen, which consists of the extreme
north-central portion of Middlesex C ounty and a small po rtio n of south-central
Somerset C ounty as well as a small p o rtio n o f western Union C ounty.
In this trade area, 12 commercial banks operate 24 offices w ith total IPC
deposits of $247,573,000. The largest share of this local market is held by the
$143-m illion-deposit United National Bank, Plainfield, Union C ounty, which
has 47.7 percent of the IPC deposits. The $200-m illion-deposit First National
Bank of Central Jersey, Somerville, has 8.5 percent o f such IPC deposits w hile
the $169-m illion-deposit The National Bank o f New Jersey, New Brunswick,
has 7.9 percent. People's nearest com petitor, The First National Bank o f
Dunellen, controls 6.9 percent o f these IPC deposits while People's itself has
only 3.3 percent. The balance is shared by the remaining seven banks.
People's is the second smallest bank operating in the trade area and three o f
its com petitors are affiliated w ith relatively large m ultibank holding companies.
The proposed acquisition w ould not change the structure o f this local banking
market because Hudson is not now represented there. The resulting bank,
however, should be in a better position to offer greater com petition to the
larger banks in the area and to those banks w ith holding company affiliations.
Hudson and People's operate in separate and distin ct banking markets. T heir
closest offices are about 20 miles apart in a densely populated urban and
suburban area w ith numerous commercial bank alternatives. Neither, moreover,
draws any significant business from areas served by the other. A ccordingly, the
Board is of the view that the proposed acquisition w ould not eliminate any
significant existing com petition between Hudson and People's.
New Jersey law permits statewide branching, subject to certain restrictions
relating to principal office protection. Hudson is prohibited from de novo
entry into Dunellen proper because of these restrictions, while People's (which
has never branched since its founding in 1927) is unlikely to attem pt de novo
branching in areas now served by Hudson. Thus, the proposed acquisition
would not eliminate any significant potential fo r increased com petition be­
tween Hudson and People's through de novo branching.
Commercial banking in New Jersey is relatively unconcentrated at this time.
The tw o largest commercial banking organizations, each a m ultibank holding
company w ith total deposits in excess o f $1.4 billio n , have an aggregate of only
15.1 percent o f the commercial bank deposits in the State. Hudson has 0.8
percent o f such deposits and the proposed acquisition w ould give the resulting
bank only 0.9 percent o f the State's commercial bank deposits.



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

46

The Board of Directors, accordingly, is of the opinion that the proposed
merger w ould not, in any section o f the country, substantially lessen com peti­
tion, tend to create a m onopoly, or in any other manner be in restraint o f
trade.
Financial and Managerial Resources; Future Prospects. The financial and
managerial resources and fu tu re prospects fo r Hudson are considered adequate.
A lthough People's possesses financial adequacy, management succession has
become a problem and a declining deposit trend has become evident. The
resulting bank w ill have adequate financial and managerial resources and the
future outlook is favorable.
Convenience and Needs o f the C om m unity to be Served. Customers o f
People's w ould benefit as recipients of services offered by Hudson b u t not now
offered by People's, such as com puter services, a w ider variety of commercial,
industrial, and instalm ent-type loans, and fu ll trust services. In addition, in ­
stead of People's' effective lim it of $100,000 on individual loans, the resulting
bank w ould have a sta tu to ry lending lim it o f about $1,600,000. These services
are presently available from other banks in the market served by People's, but
the resulting bank w ould provide another meaningful alternative fo r a broad
range o f commercial banking services.
. Based on the foregoing in fo rm a tio n , the Board of Directors has concluded
that approval o f the application is warranted.

The Peoples Bank
Portland, Indiana

R e so u rce s
(in
th o u sa n d s
o f d o lla rs)

In
o p e ra tio n

T o be
operated

41,373

2

3

5,630

1

B a n k in g O ffic e s

to merge with

U nion State Bank
Redkey

Summary report by A tto rn e y General, December 16, 1974
Peoples Bank is the largest of the five banks serving Jay County, and of the
three banks located in Portland, the county seat. Union Bank is the co unty's
smallest bank. The parties are separated by a distance o f about 11 miles, and
no other banks are located in the area directly between Portland and Redkey.
The application indicates th a t in 1973 an urgent need fo r capital arose at
Union Bank. A t th a t tim e individuals controlling 59 percent of the stock o f
Peoples Bank acquired approxim ately 69 percent o f the stock of Union Bank.
S ignificant com petition probably does not now exist between the tw o banks,
in part due to the 1973 stock transactions.
In view o f the p ro x im ity o f the merging banks, it appears th a t the overall
stock purchase-merger transaction described in the application w ill eliminate
some com petition.



B A N K A B S O R P T IO N S A P P R O V E D BY T H E C O R P O R A T I O N

47

Basis fo r Corporation approval, March 7, 1975
The Peoples Bank, Portland, Indiana (“ Peoples B a n k"), an insured State
nonmember bank w ith total resources of $41,373,000 and total IPC deposits
of $31,727,000, has applied, pursuant to section 18(c) and other provisions o f
the Federal Deposit Insurance A ct, fo r the C orporation's prio r consent to
merge w ith Union State Bank, Redkey, Indiana (“ Union B ank"), an insured
State nonmember bank w ith total resources of $5,630,000 and total IPC
deposits o f $4,189,000. The tw o banks would merge under the charter and
title o f Peoples Bank and, as an incident to the merger, the only office o f
Union Bank w ould become a branch o f the resulting bank, increasing the
number o f its offices to three.
C om petition, Peoples Bank has its main office and one branch in dow ntow n
Portland (population 7,115), the largest city in Jay C ounty (population
23,575). Its prim ary service area is all o f Jay C ounty and portions o f each
county to the north and south. Union Bank operates its sole office in Redkey
(population 1,667), approxim ately 11 miles southwest o f Portland, in the
southwestern corner of Jay County. The economy o f Jay C ounty is prim arily
agricultural w ith some light industry in Portland, Redkey, and D unkirk. Many
residents of the Redkey area commute to Muncie, 17 miles southwest of Redkey in Delaware County, fo r em ploym ent and shopping conveniences. Jay
C ounty's buying level fo r 1974 ($10,442) was 16.8 percent below the State
level ($12,555), w hile Delaware C ounty's buying level ($13,479) was 7.4 per­
cent above the State level. Muncie is a c ity of approxim ately 69,000 persons,
while Delaware C ounty has a population close to 130,000 persons.
The area prim arily served by Union Bank is the southwestern portion of Jay
County, northern portions o f Randolph C ounty to the south, and the n o rth ­
eastern portion o f Delaware County extended to include the city o f Muncie.
Nine banks, including 5 in Jay C ounty, 3 in Delaware C ounty, and 1 in Ran­
dolph County, operate 15 banking offices in this geographic area. Peoples Bank
holds 12.5 percent of the area's commercial bank IPC deposits and ranks
fo u rth in share of deposits, while Union Bank has 1.7 percent of such deposits
and ranks ninth. In addition to competing Jay County banks, there are tw o
branches of Delaware County banks located only 6 miles southwest of Redkey
that actively compete in Union Bank's local market. The tw o banks are geo­
graphically only 11 miles apart, and no other bank is located between them.
A ccordingly, it w ould appear, and the application confirm s, th a t the proposed
merger w ould eliminate some existing com petition between the participating
banks. However, the degree o f com petition is lim ite d * and the proposed mer­
ger would have little significance in view of the size o f Union Bank relative to
its com petitors, its ineffectiveness as a com petitor in the period preceding the
1973 purchase of its stock, and the fact th a t a su fficie n t number o f convenient
alternatives in this relatively small m arket w ould remain even if the proposed
merger is consummated.
* F o r purposes o f th is analysis, th e C o rp o ra tio n has ignored th e fa c t th a t U n io n B ank was
b ro u g h t un der c o m m o n c o n tro l w ith Peoples Bank in 1973 th ro u g h s to c k purchase b y
fo u r shareholders o f Peoples Bank. A bsen t unusual circum stances, such s to ck purchase
lends no persuasive w e ig h t to approval o f a proposed merger. As th e C o rp o ra tio n has
p re v io u s ly n o te d , to a d o p t th e a rg u m e n t th a t the banks do n o t com pete because o f th e
c o m m o n sto c k ow n e rsh ip w o u ld in m any cases de feat the basic purposes o f th e Bank
Merger A c t.
FRASER

Digitized for


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

48

Indiana law lim its branching to the county in which a bank is headquar­
tered, subject to home office protection. Increased com petition between the
tw o banks because of de novo branching by one or the other is, however,
unlikely. In 1973, Union Bank had lim ited financial resources and no branch­
ing experience. Redkey is protected from outside branching by Union Bank's
home office location, but even w ith o u t it the Redkey area would appear rela­
tively undesirable fo r de novo branching compared w ith other sites available in
Jay C ounty to the banks in Portland.
While the proposed merger w ould add to the dom inant share o f commercial
bank deposits held by Peoples Bank in all o f Jay C ounty, its legal branching
area, Union Bank was not a significant co m p e tito r at the tim e stock control
was purchased in 1973, and its elim ination as a separate com petitor in Jay
C ounty w ould appear inconsequential as a com petitive matter.
The Board o f Directors is of the opinion th a t the proposed merger would
not, in any section o f the country, substantially lessen com petition, tend to
create a m onopoly, or in any other manner be in restraint of trade.
Financial and Managerial Resources; Future Prospects. The financial and
managerial resources of Peoples Bank and Union Bank are satisfactory. Under
the present common ownership the banks could continue to operate satis­
fa cto rily as independent banks. The resulting bank would have favorable future
prospects.
Convenience and Needs o f the C om m unity to be Served. The resulting bank
w ould have a much higher lending lim it than- Union Bank and would compete
fo r mortgage loans and farm loans, an area of lending which Union Bank has
not serviced in the past. Trust services, safe deposit boxes, a night depository, a
drive-up w indow , and other conveniences w ill be added to the Redkey office o f
the resulting bank.
Based on the foregoing, the Board o f Directors has concluded that approval
of the application is warranted.

R e so u rce s
(in
th o u sa n d s
o f d o lla rs)

Union Bank & Trust Company
M organfield, Kentucky

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

T o be
operated

15,609

2

3

2,426

1

to merge with

The Farmers Bank o f U niontow n
U niontow n

Summary report by A tto rn e y General, October 7, 1974
The offices o f the parties are separated by a distance of about 6 miles, w ith
no com petitive alternatives in the intervening area. Thus, it appears that the
proposed merger w ould eliminate existing com petition between the parties and
increase concentration in commercial banking in Union C ounty.
Basis fo r Corporation approval, March 7, 1975
Union Bank & Trust Company, Morganfield, Kentucky (“ U n io n "), a State
nonmember insured bank having total resources o f $15,609,000 and total IPC



B A N K A B S O R P T IO N S A P P R O V E D BY T H E C O R P O R A T I O N

49

deposits of $11,672,000, has applied, pursuant to section 18(c) and other
provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's p rio r
consent to merge w ith The Farmers Bank of U niontow n, U niontow n, Ken­
tucky ("F arm e rs"), having total resources o f $2,426,000 and total IPC deposits
of $2,072,000. As an incident to the proposed transaction, the sole office o f
Farmers w ould be established as a branch o f Union, increasing the number o f
its offices to three.
C om petition. Union operates its main office and only branch in Morganfield
(population 3,563), the county seat and largest com m unity o f Union C ounty,
in northwest Kentucky some 35 miles southwest o f Evansville, Indiana.
Farmers has its sole office in U niontow n (population 1,255), in Union C ounty,
7 miles north o f Morganfield, on the Ohio River.
Union C ounty (population 15,882) lies just east o f the Ohio River, which
separates it from Indiana to the n orth and Illinois to the west. The economy o f
the county depends principally on agriculture and coal mining. A significant
number o f its inhabitants are employed in the Evansville, Indiana-Kentucky
SMSA, w hich lies im m ediately to the northeast. The population of Union
C ounty increased 9.3 percent during the 1960s, the increase occurring solely in
that portion o f the county lying east o f Morganfield adjacent to the SMSA.
The population of Morganfield, meanwhile, declined 4.8 percent while th a t o f
U niontow n was unchanged. The 1973 median household effective buying level
of the county ($7,484) lagged th a t o f the State as a whole by 5.3 percent.
The proposed merger w ould have its most immediate and direct com petitive
im pact w ith in Union C ounty, where fo u r commercial banks operate a total o f
eight offices. Union holds the th ird largest share, 26.7 percent, o f the IPC
deposits held by these offices; Farmers holds the smallest share, 4.8 percent,
drawing virtu a lly all of its business from U niontow n and its v ic in ity . In addi­
tion to the Ohio River on the north, this com m unity is surrounded on the east
and northeast by sparsely populated marshlands. The principal road leads
southward to Morganfield and beyond. Union derives a significant am ount o f
its deposits and loans from the U niontow n area and thus, its trade area overlaps
that o f Farmers.
A lthough the proposed merger would eliminate existing com petition be­
tween Union and Farmers and increase concentration levels w ith in the county,
these consequences o f the merger have lim ited significance in view o f the small
size o f the relevant market in terms o f population and deposit potential and
the presence o f tw o other significant com petitors. Morganfield National Bank
holds the largest share of the county's IPC deposits, operates tw o offices in
Morganfield and one office in Waverly, 10 miles southeast of U niontow n, and
has supervisory approval to establish a U niontow n office when, as a result o f
the proposed merger, home office protection has been removed from that
com m unity. Farmers State Bank located in Sturgis, 10 miles south o f Morgan­
field, w ith 27.9 percent o f the county's IPC deposits, would also remain an
effective co m petitor in the county.
A lthough the merger w ould reduce to three the number of commercial banks
in Union C ounty, the effectiveness of Farmers as a co m p e tito r appears to be
lim ited. This bank has attained a deposit size of only $2.2 m illio n after 72
years o f operation and maintains a loan account o f comparatively modest size.
Further, both of the other merger partners legally available to Farmers are



50

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

larger than Union, and a merger w ith either w ould result in a higher concen­
tration o f Union C ounty's commercial bank IPC deposits than the resulting
bank's 31.5 percent o f such deposits.
There appears to be only minimal potential fo r increased com petition be­
tween the tw o banks through their de novo branching in the future. Kentucky
law lim its de novo branching by a commercial bank to its headquarters county,
subject to home office protection. Thus, Union may not legally establish a de
novo branch in U niontow n, nor may Farmers branch d irectly in to Morganfield.
Three of the fo u r incorporated areas o f Union C ounty have home office pro­
tection and the fo u rth , w ith a population of only 335, is served by a branch o f
the county's largest bank. While areas beyond city lim its are open fo r branch­
ing to all fo u r of the county's banks, little such expansion can be expected in
the foreseeable future. The county presently has one commercial bank office
fo r each 1,985 inhabitants, its population declined during the 1960s in all areas
other than the extreme eastern section, and its income levels are below the
statewide average. Farmers has operated as a u n it bank fo r 72 years and has
neither managerial nor financial resources to facilitate de novo expansion.
Union, were it to establish de novo branches, w ould be likely to favor the
expanding po rtio n o f the county to the east of Morganfield rather than the
U niontow n area to the north.
For the reasons stated, the Board of Directors is o f the opinion th a t the
proposed merger w ould not, in any section o f the country, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. Each of these factors
is favorable fo r Union (as they w ould be fo r the resulting bank) and marginally
adequate fo r Farmers.
Convenience and Needs o f the C om m unity to be Served. The proposed
merger w ould have littie effect in Union C ounty generally, other than pro­
viding the resulting bank w ith a modest increase in lending lim it. In the U nion­
tow n area, however, a more aggressive management w ould offer a broader
range of credit plans w ith a substantially increased loan lim it, and tru st fa c il­
ities w ould become locally available fo r the firs t time. Newly constructed
banking premises, planned fo r the Farmers location, should contribute to the
convenience of customers in the U niontow n m arket in the near future.
Based upon the foregoing, the Board of Directors has concluded that
approval o f the application is warranted.

R e so u rce s
\i in
in
th o u sa n d s
o f d o lla rs)

Depositors T ru st Company o f Portland
Portland, Maine

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

7,275

1

6,030

3

to purchase the assets and assume
the deposit liabilities o f

South Portland Bank & T rust Company
 South Portland


T o be
op erated

4

B A N K A B S O R P T IO N S A P P R O V E D BY T H E C O R P O R A T I O N

51

Summary report by A tto rn e y General, November 20, 1974
Portland Bank is a subsidiary of Depositors C o rp o ra tio n s m ultibank h o ld ­
ing company cu rre n tly operating 6 commercial banking subsidiaries w ith 54
offices in the State o f Maine. A lthough Depositors C orporation is currently the
second largest o f the banking organizations in the State o f Maine w ith about
16.5 percent o f to ta l State deposits, its subsidiaries are largely concentrated to
the north o f Portland and surrounding Cumberland C ounty. Depositors C or­
poration presently controls tw o banking offices in the Portland area: Portland
Bank's main office in the c ity o f Portland and a branch office o f Depositors
Trust Company, also a Depositors C orporation subsidiary, located in Freeport,
about 15 miles north of Portland.
Portland and South Portland are adjacent cities separated by Portland
Harbor and the Fore River. The nearest offices o f the parties are separated by a
distance of about 2 miles and th e ir main offices are less than 3 miles apart.
Thus, it appears th a t the proposed transaction w ould elim inate some existing
com petition between the parties in the Portland-South Portland area. However,
it does not appear th a t concentration in commercial banking w ould be sub­
stantially increased in any relevant geographic market.
Basis fo r C orporation approval, March 7, 1975
Depositors Trust Company of Portland, Portland, Maine ("D epositorsP ortland"), a State nonmember insured bank w ith total resources o f
$7,275,000 and total IPC deposits o f $5,369,000, has applied, pursuant to
section 18(c) and other provisions of the Federal Deposit Insurance A c t, fo r
the C orporation's prior consent to purchase the assets o f and assume the lia­
b ility to pay deposits made in South Portland Bank & T rust Company, South
Portland, Maine ("S outh Portland B a n k"), w ith total resources o f $6,030,000
and total IPC deposits of $4,139,000. The head office and tw o branches o f
South Portland Bank w ould become branches o f Depositors-Portland, increas­
ing the number of its approved offices to five.
Com petition. Depositors-Portland, established in 1972, operates a single
office in Portland (1970 population 65,116, down 10.3 percent from 1960).
An approved but unopened branch is to be located 1/2 mile southeast of the
head office. Depositors-Portland is the smallest o f the six subsidiaries of De­
positors C orporation, Augusta, Maine. This holding company, co n trolling total
deposits of $272.8 m illio n , is the State's second largest commercial banking
organization.
South Portland Bank, established in 1971, operates a head office and tw o
branches, all w ith in a radius of 5 miles, in South Portland (1970 population
23,267, up 2.1 percent from 1960). Portland and South Portland, although
adjacent, are separated fo r the most part by the Fore River and Portland
Harbor. However, access to both cities is readily available. These are the core
cities o f the Portland, Maine SMSA (1970 population 141,625, up 14.3 percent
from 1960). The SMSA is one o f the principal d istrib u tio n centers in northern
New England. D istrib u tio n , services, and manufacturing, along w ith deep-river
port facilities, provide a diversified economic base. The 1973 median buying
levels of Portland ($9,012) and the Portland m etropolitan area ($9,560) com ­
pare favorably w ith the State's level of $8,598.
While South Portland Bank does, to some extent, draw business fro m most
of the SMSA, its prim ary market area comprises Portland and South Portland



52

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

cities and Cape Elizabeth and Scarborough towns. The population of this
market area was 104,101 in 1970, a decrease o f 3.0 percent from 1960. Only
Portland lost population during the decade, however, in the typical movement
of inhabitants fro m the inner city to the suburbs. In this market, 6 commercial
banks operate a total o f 38 offices and hold IPC deposits aggregating
$233,012,000. Three Portland-based banks are dom inant in this area, operating
33 offices and holding 95.7 percent o f the area's commercial bank IPC de­
posits. These banks are representatives o f the first, fo u rth , and sixth largest
commercial banking organizations in the State. The resultant bank w ould hold
only 4.1 percent of such deposits (Depositors-Portland presently has 2.3 per­
cent and South Portland Bank 1.8 percent).
While the nearest offices o f Depositors-Portland and South Portland Bank
are some 2.5 miles apart (the approved bu t unopened branch o f DepositorsPortland is to be located about 2 miles from the main office o f South Portland
Bank) and are separated by an arm of Portland Harbor w ith several offices o f
competing banks intervening, the tw o banks draw business from essentially the
same area. South Portland Bank in particular has been an aggressive c o m p e tito r
during its 5 years of existence. While the proposed transaction would eliminate
this existing com petiton between the tw o banks, the longer-run im pact is like ly
to be negligible in view o f the modest size of both banks in the relevant market
and the presence therein o f three banks w ith much larger shares o f the total
commercial bank IPC deposits. The Portland SMSA, moreover, is growing
despite the population declines registered in its central p o rtio n , and new com ­
petitors, some o f whom w ill undoubtedly have the backing o f statewide bank
holding companies, should continue to be attracted to the market.
Both banks may, under present law, branch de novo into the same area.
South Portland Bank has established tw o such branches since it opened fo r
business in 1971 (one o f the branches is a lim ited service drive-in fa c ility ). Its
fu rth e r de novo a ctivity is not regarded as likely due to lim ited managerial and
financial resources. Depositors-Portland, w ith the backing o f its holding com ­
pany, is expected to be active in de novo branching. The proposed transaction
w ould give a small b u t significant netw ork o f offices in the Portland area, w ith
correspondingly greater incentive to compete as vigorously as possible w ith in
the market. A n y elim ination o f potential com petition between the tw o banks
caused by the proposed transaction is outweighed by this prospect o f more
intensive and effective com petition w ith the area's three leading banks.
Depositors C orporation presently controls 15.2 percent of the State's to ta l
commercial bank deposits. If the proposed transaction is consummated, the
percentage o f such deposits w ould increase to 15.5 percent, w ith Depositors
C orporation maintaining its rank as the second largest o f Maine's commerciai
banking organizations. The six largest such organizations hold 80.2 percent o f
the State's total commercial bank deposits. While the proposed purchase and
assumption transaction would eliminate an independent bank and fu rth e r con­
centrate the banking resources o f the State, it w ould, more im p o rta n tly, p ro­
vide an additional toe-hold in the Portland-South Portland market fo r De­
positors C orporation. Presently the only representation o f Depositors C orpora­
tion in the Portland, Maine SMSA is the Freeport Branch (IPC deposits
$3,958,000) of Depositors Trust Company (Augusta). This branch lies a p p ro xi­
mately 20 miles northeast of Depositors-Portland and is the closest office o f
any o f the a ffilia te d banks.



B A N K A B S O R P T IO N S A P P R O V E D BY T H E C O R P O R A T I O N

53

Under these circumstances, the Board o f Directors is o f the opinion th a t the
proposed purchase and assumption transaction w ould not, in any section o f the
country, substantially lessen com petition, tend to create a m onopoly, or in any
other manner be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. The resuitant bank
w ould have adequate financial and managerial resources. Its future prospects
w ould be satisfactory.
Convenience and Needs o f the C om m unity to be Served. While no new
services w o rth y of note w ill be developed by the proposal, the general public in
the Portland-South Portland area should benefit from a more com petitive
banking environm ent.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.

R e so u rce s
(in
th o u sa n d s
o f d o lla rs)

The Suncook Bank
Suncook, New Hampshire

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

24,722

1

2,851

1

T o be
op erated

2

to merge with

The H ooksett Bank
Hooksett

Summary report by A tto rn e y General, December 9, 1974
The merging banks are located about 7 miles apart w ith no other banks in
the area directly between them . The application indicates th a t the service area
of Hooksett Bank is w h o lly w ith in th a t o f Suncook Bank. The banks' service
areas, however, are situated about midway between Concord (8 miles north o f
Suncook) and Manchester ( 5 miles south of Hooksett) and they compete w ith
other banks in those banking markets. Suncook Bank accounts fo r a p p ro xi­
mately 7 percent and Hooksett Bank less than 1 percent of the commercial
bank deposits in the Concord and Manchester areas. Moreover, the small size
and market position of Hooksett Bank mitigate any com petitive effects of the
proposed transaction.
Basis fo r C orporation approval, March 7, 1975
The Suncook Bank, Suncook, New Hampshire, a State nonmember insured
bank having total resources o f $24,722,000 and IPC deposits of $20,710,000,
has applied, pursuant to section 18(c) and other provisions of the Federal
Deposit Insurance A ct, fo r the C orporation's p rio r consent to merge under its
charter and title w ith The Hooksett Bank, Hooksett, New Hampshire, w ith
total resources of $2,851,000 and IPC deposits of $2,121,000. As an incident
to the merger, the sole office o f The Hooksett Bank w ould be established as a
branch o f The Suncook Bank, increasing to tw o the number of its offices.



54

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

C om petition. The Suncook Bank operates its sole office in Suncook (popu­
lation 4,280), an unincorporated co m m u n ity comprising parts o f the M erri­
mack C ounty towns o f Pembroke and A llenstow n, in south-central New
Hampshire. Its prim ary trade area comprises the c ity of Manchester, 10 miles
to the south of Suncook, the southern half of the c ity of Concord, 8 miles to
the northwest, the towns o f A llenstow n, Hooksett, and Pembroke, w hich form
a co rridor between the tw o cities, and the towns of Epsom, N orthw ood, and
Pittsfield, situated to the northeast o f the corridor. Manchester (population
87,754) is the State's largest city and a trading and industrial center. Concord
(population 30,022) is New Hampshire's capitol and th ird largest city. Sub­
urban portions of The Suncook Bank's market are p rim a rily residential, w ith
many residents being employed in Manchester or Concord.
The Hooksett Bank has its sole office in the tow n of Hooksett (population
5,564), situated 3 miles north o f Manchester and 7 miles south of Suncook.
The H ooksett Bank draws the bulk of its business fro m Hooksett and the
northern fringes o f Manchester, an area also served by The Suncook Bank.
However, The Suncook Bank has stock control o f The Hooksett Bank, w hich it
sponsored and established during 1972 in a co m m u n ity into which it could not
legally branch de novo, and the tw o banks have interlocking managements.
Thus, there is no effective com petition between them.
W ithin the local market served by the 2 banks, 21 offices are operated by 11
commercial banks, and these offices hold $302 m illion in aggregate IPC de­
posits. The Manchester Bank holds 41.1 percent o f such deposits. Tw o subsid­
iary banks o f First Bancorp of N. H., Inc., hold 19.3 percent, w hile the tw o
next largest shares, 10.8 percent and 9.7 percent, are held by tw o other
Manchester-based banks. The Suncook Bank and The H ooksett Bank together
control 7.6 percent o f such deposits. Accordingly, the proposed merger w ould
not change the existing com petitive structure o f the market. Furtherm ore,
their proposed merger is u nlikely to affect to any significant extent future
com petition w ith in the same market. The law that in 1972 prevented The
Suncook Bank from branching into Hooksett de novo continues in effect. The
tow n of Suncook, in turn, cannot be entered de novo by any commercial bank
as long as The Suncook Bank maintains its principal office there. To the
extent other locations m ight prove desirable fo r de novo branching w ith in the
market, numerous com petitors remain to insure effective com petition and the
small share o f the market presently controlled by The Suncook Bank and The
Hooksett Bank indicates no significant elim ination of potential com petition
through the ir proposed merger even in the u n likely event disa ffilia tio n were to
occur.
Under the circumstances presented, the Board o f Directors is o f the opinion
that the proposed merger w ould not, in any section of the co u n try, substan­
tia lly lessen com petition, tend to create a m onopoly, or in any other manner
be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. The Suncook Bank
has satisfactory financial resources, and those o f The H ooksett Bank are ade­
quate. The resulting bank would have adequate financial and managerial re­
sources and its future prospects appear reasonably favorable.
Convenience and Needs o f the C om m unity to be Served. The Suncook Bank
presently competes th roughout the prim ary trade area o f The Hooksett Bank
and the merger w ould provide no new services to the co m m u n ity other than



B A N K A B S O R P T IO N S A P P R O V E D BY T H E C O R P O R A T I O N

55

trust services, which would be offered fo r the firs t tim e at The H ooksett Bank
location. A lending lim it increased to $250,000 should strengthen somewhat
the com petitive stance o f the resulting bank in the relevant market.
Based on the foregoing, the Board of Directors is o f the opinion that
approval of the application is warranted.

R e so u rce s
/in
In
v
th o u sa n d s
o f d o lla rs)

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

Bank o f Virginia-Shenandoah
Winchester, V irginia
(in organization)

T o be
o perated

1

to merge with

V irginia Loan and T h rift Corporation
Winchester

2,199

1

Summary report by A tto rn e y General, September 13, 1974
The proposed merger is part of a plan through which Virginia Loan and
T h rift Bank would become a subsidiary o f Bank o f V irginia Company, a bank
holding company. The instant merger, however, w ould merely combine an
existing bank w ith a nonoperating in s titu tio n ; as such, and w ith o u t regard to
the acquisition of the surviving bank by Bank o f V irginia Company, it w ould
have no effect on com petition.
Basis fo r C orporation approval, March 7, 1975
Pursuant to sections 5 and 18(c) and other provisions o f the Federal Deposit
Insurance A ct, applications have been filed fo r Federal deposit insurance fo r
Bank o f Virginia-Shenandoah, Winchester, Virginia ("B O V A "), a proposed new
bank in organization, and fo r consent to its merger w ith Virginia Loan and
T h rift Corporation, Winchester, V irginia (" V L T C " ), a noninsured industrial
loan association w ith total resources o f $2,199,000 as of October 10, 1974,
upon the latter's conversion to a commercial bank charter. The merger would
be effected under the charter and w ith the title of BOVA, and the resulting
bank w ould operate from the single location o f VLTC .
The new bank fo rm ation and merger transaction are designed solely to
enable Bank of V irginia Company, Richmond, Virginia, a registered bank h o ld ­
ing company, to acquire substantially all of the voting shares of the bank
resulting from the proposed merger. An application fo r approval o f the acquisi­
tion is pending before the Board o f Governors of the Federal Reserve System.
BOVA w ill not be in operation as a commercial bank prior to the transaction,
and the proposed merger w ill not, per se, have any effect on com petition.
W ith respect to the application fo r Federal deposit insurance, the net result
of the proposals w ill be to convert a lim ited service industrial loan association
to a commercial bank. The trade area fo r the bank is Winchester, an independ­
ent c ity w ith a 1970 population of 14,643, and its immediate environs in



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

56

surrounding Frederick C ounty. The county had a 1970 population o f 28,893.
The Winchester area is prim arily commercial and residential w ith a small but
significant agricultural sector, and growth prospects are favorable.
The trade area is served by 3 commercial banks (all of which are affiliates o f
other bank holding companies) which w ill comprise the com petition fo r BO VA
through their 17 offices. The total deposits o f these banks in the aggregate
approximated $162 m illio n as o f June 30, 1974. The conversion of this indus­
trial loan association, w ith total deposits of only $1.3 m illio n , should have no
appreciable effect on the com petitive situation, b u t its acquisition by BOVA
should help to stimulate com petition in the Winchester market. V LTC has been
in operation fo r over 48 years and has served the needs and convenience o f the
com m unity during th a t period. The granting of deposit insurance w ill be bene­
ficial to the converted bank's present customers and to the banking co m m u n ity
in general.
On the basis o f the above in fo rm a tio n and other inform ation available to
the Corporation, the Board o f Directors has concluded that approval of the
application is warranted.

Bank o f Somerset
Princess Anne, Maryland

Re so u rce s
( in
th o u sa n d s
o f d o lla rs)

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

30,184

4

9,150

2

T o be
operated

6

to m erge w ith

Exchange and Savings Bank o f Berlin
Berlin

Summary report by A tto rn e y General, November 5, 1974
The nearest offices o f the merging banks are approxim ately 23 miles apart
w ith several com petitive alternatives in the intervening area. It appears th a t the
proposed transaction w ould not eliminate substantial existing com petition.
And in view of Exchange Bank's modest market position in its service area, and
the existence o f several potential entrants into th a t area, we conclude th a t the
proposed merger w ould not eliminate substantial potential com petition.
Basis fo r C orporation approval, March 25, 1975
Bank of Somerset, Princess Anne, Maryland, a State nonmember insured
bank w ith total resources of $30,184,000 and total IPC deposits o f
$22,928,000, has applied, pursuant to section 18(c) and other provisions o f the
Federal Deposit Insurance A ct, fo r the C orporation's p rio r consent to merge
w ith Exchange and Savings Bank o f Berlin, Berlin, Maryland ("Exchange
B ank"), w ith total resources of $9,150,000 and total IPC deposits of
$7,461,000. These banks w ould merge under the charter and w ith the title o f
Bank o f Somerset and, as an incident to the merger, the tw o offices of Ex­
change Bank w ould be established as branches o f the resulting bank, increasing
the number of its offices to six.



B A N K A B S O R P T IO N S A P P R O V E D BY T H E C O R P O R A T I O N

57

C om petition. Bank o f Somerset is a subsidiary o f Mercantile Bankshares
C orporation, the sixth largest commercial banking organization in Maryland,
controlling 11 banks having total IPC deposits of $530,225,000, or a p p ro xi­
mately 7.7 percent o f all commercial bank IPC deposits in the State. Bank o f
Somerset has fo u r offices: the main office and tw o branches in Somerset
C ounty and one branch in W icomico County.
Exchange Bank operates its main office in Berlin (population 1,942) and a
branch opened in June 1974 in Ocean C ity (population 1,493), 9 miles east o f
Berlin. Both offices are in northeastern Worcester C ounty (1970 population
24,442, up 3.0 percent since 1960). Worcester County's 1974 median house­
hold buying level was $8,243, 38.8 percent below the statewide level. Ex­
change Bank is the 83rd largest commercial bank in Maryland, holding 0.1
percent o f the State's commercial bank IPC deposits.
Com petitive effects of the proposed merger would be most direct and
immediate in the trade area o f Exchange Bank, which comprises com m unities
in northern Worcester C ounty and adjacent eastern W icomico C ounty w ith in
15 road-miles o f Berlin. A total o f 10 banks operate 15 offices in the market,
serving a year-round population estimated at 18,000, b u t a much larger
summertime population. Exchange Bank is the th ird largest among the 10
banks in this market, w ith 9.2 percent o f all IPC deposits held by the area's
commercial bank offices. The bank w ith the largest area share of such deposits
is fo u r times the deposit size o f Exchange Bank, while the second, fo u rth , fifth ,
and sixth largest area shares are close to Exchange Bank's share. A distance o f
23 road-miles separates the closest offices o f the tw o banks while offices o f
several other commercial banks serve the intervening area. There is no appre­
ciable overlapping of trade areas, and the proposal w ould eliminate no sig n ifi­
cant existing com petition between Bank o f Somerset and Exchange Bank.
Should the proposed merger not be consummated, there appears to be no
significant potential fo r increased com petition between the tw o banks through
de novo branching in the future. A lthough it may legally establish de novo
branches in the area served by Exchange Bank and although it has the financial
and managerial capacity to do so, Bank o f Somerset is un like ly to fin d this
market attractive in view o f its substantially below average buying level and the
large number o f banking offices serving a relatively small year-round popula­
tion. Exchange Bank, fo r its part, has only recently opened its firs t branch
since it was chartered in 1899, and does not have the financial or managerial
resources fo r significant additional expansion.
A t the same time, consummation o f the proposed merger w ould not in h ib it
the entry of several larger statewide bank holding companies presently unrepre­
sented in the market or effective com petition w ith in the market in the future.
Statewide, the proposed merger w ould increase fro m only 7.7 percent to 7.8
percent the share o f aggregate commercial bank IPC deposits held by Mercan­
tile Bankshares C orporation. This increment would have no perceptible e ffect
on the concentration o f commercial bank resources in the State of Maryland,
while com petition in the local market in which Exchange Bank operates should
be enhanced.
Based on the foregoing, the Board o f Directors has concluded th a t the
proposed merger w ould not, in any section o f the co untry, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.



58

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

Financial and Managerial Resources; Future Prospects. Bank o f Somerset
has satisfactory financial and managerial resources; those o f Exchange Bank are
acceptable fo r the volume o f business being conducted. The resulting bank
w ould have satisfactory financial and managerial resources and its future
prospects appear favorable.
Convenience and Needs o f the C o m m u n ity to be Served. The merger would
have little effect in the present market o f Bank o f Somerset other than p ro ­
viding a credit card service which is now available to customers of Exchange
Bank. The merger w ould bring to the Berlin-Ocean C ity m arket another source
fo r large size loans, improved commercial and consumer lending services, a
broader range of deposit alternatives, daily compounding of savings interest,
and a more com petitive tim e deposit rate. A th ird banking organization among
the 10 largest in Maryland w ould, by the merger, jo in 2 others already in the
market o f Exchange Bank, and com petition should be enhanced to the benefit
of businessmen and residents alike.
Based on the foregoing in fo rm a tio n , the Board of Directors has concluded
that approval o f the application is warranted.

R e so u rce s
( in
un
th o u sa n d s
o f d o lla rs)

Dry Dock Savings Bank
New Y o rk, New Y o rk

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

1,447,175

7

2,267

1

T o be
operated

8

to acquire the assets and assume
the deposit liabilities of

F ifth Avenue Savings and Loan Association
New Y o rk

Approved under emergency provisions. No report requested fro m
A tto rn e y General.

the

Basis fo r Corporation approval, A pril 7, 1975
Dry Dock Savings Bank, New Y o rk, New Y o rk, an insured mutual savings
bank w ith total resources of $1,447,175,000 as of December 31, 1974, has
applied, pursuant to section 18(c) of the Federal Deposit Insurance A ct, fo r
the Corporation's prior consent to acquire the assets o f and assume the lia b ility
to pay deposits made in F ifth Avenue Savings and Loan Association, New
Y ork, New Y ork, a noninsured State-chartered mutual savings and loan associa­
tion w ith total resources of $2,267,259 as of January 17, 1975. As an incident
to the proposed transaction, the sole office of F ifth Avenue Savings and Loan
Association w ould become a branch of Dry Dock Savings Bank.
The Board of Directors has determined that the C orporation must act
im mediately in order to prevent the probable failure of F ifth Avenue Savings
and Loan Association.
Based on this finding the proposed transaction is approved. Under section
18(c)(6) of the Federal Deposit Insurance A ct, the transaction may be con­
summated im m ediately.



59

B A N K A B S O R P T IO N S A P P R O V E D BY T H E C O R P O R A T I O N

Houghton State Bank
Red Oak, Iowa

Re so u rce s
(in
th o u sa n d s
o f d o lla rs)

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

31,393

3

4,190

1

T o be
operated

4

to acquire the assets and assume
the deposit liabilities of

The Cumberland Savings Bank
Cumberland

SQmmary report by A tto rn e y General, November 20, 1974
Bank is located about 30 miles northeast o f A pplicant's branch office in
E llio tt and about 38 miles northeast o f the latter's main office in Red Oak. It
appears that the proposed transaction would not eliminate significant existing
com petition between the parties. And in view o f the modest size of Bank and
of the com m unity which it serves (Cumberland's population is approxim ately
425), we conclude th a t the effect of the proposed transaction on potential
com petition w ould not be significantly adverse.
Basis fo r C orporation approval, A p ril 11, 1975
Houghton State Bank, Red Oak, Iowa, an insured State nonmember bank
w ith total assets o f $31,393,000 and IPC deposits o f $25,537,000, has applied,
pursuant to section 18(c) and other provisions o f the Federal Deposit Insur­
ance A ct, fo r the C orporation's p rior consent to acquire the assets of and
assume the lia b ility to pay deposits made in The Cumberland Savings Bank,
Cumberland, Iowa ("C S B "), an insured State nonmember bank w ith total
assets of $4,190,000 and IPC deposits o f $3,498,000. As an incident to the
transaction, the sole office o f CSB w ould become a branch of the resulting
bank, increasing the total number of its offices to four.
C om petition. Houghton State Bank operates its main office and one branch
in Red Oak (1970 population 6,210) and one branch in E llio tt (1970 popula­
tion 423), about 14 miles northeast o f Red Oak. Both locations are in M o n t­
gomery C ounty (1970 population 12,781, down 11.7 percent from 1960)
which is in southwestern Iowa. Red Oak, which is about 50 miles southeast o f
Omaha, Nebraska, and Council Bluffs, Iowa, is the trading center fo r a rich
agricultural area, but it also has considerable industrial development. M o n t­
gomery County's 1973 median buying level was $8,567, some 9.8 percent
below tha t fo r the State. Houghton State Bank is an affiliate of Hawkeye
Bancorporation, Des Moines, Iowa, a registered bank holding company c o n tro l­
ling 14 banks w ith total deposits of over $341 m illion.
CSB operates its only office in Cumberland (1970 population 385) in cen­
tral Cass C ounty (1970 population 17,007, down 5.1 percent from 1960). Cass
County adjoins Montgom ery County on the north and is almost solely agri­
cultural. Its 1973 median buying level was $8,149, or 14.2 percent below the
State figure of $9,499.
The effects of the proposed transaction w ould be fe lt prim arily w ith in
about 15 miles o f Cumberland. CSB is the smallest of the seven commercial
banks in this area, w ith only 4.6 percent o f the aggregate IPC deposits o f $75.7
m illion. Because Houghton State Bank is not represented in this market, the
proposed transaction w ould have no effect on the structure of commercial
banking in this small local market.



60

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

Houghton State Bank and CSB presently operate in adjoining but separate
banking markets. The closest office of Houghton State Bank to Cumberland is
its branch in E llio tt, some 20 miles to the southwest o f Cumberland, and there
is another bank located between these points. Further, no Hawkeye Bancorporation a ffiliate is closer to Cumberland than Houghton State Bank. If there is
any overlapping of areas served, the result w ould be inconsequential. The
proposed transaction, therefore, is viewed as unlikely to eliminate any signifi­
cant existing com petition between the tw o banks.
Under Iowa law, a bank may branch de novo in its home office county and
into contiguous counties subject to home office and branch office protection.
CSB has neither the resources nor the management depth to attem pt to expand
into areas served by Houghton State Bank, and the latter probably w ould not
find Cass C ounty attractive fo r de novo branching because of its declining
population, modest economic a ctivity, and low population per banking office
(2,834). As a result, no significant potential fo r increased com petition between
the tw o banks in the future through de novo branching is likely to be e lim i­
nated by the proposed transaction.
In the 8 counties open to Houghton State Bank fo r branching, there are 42
commercial banks operating 63 offices w ith aggregate total deposits of $564.5
m illion. Houghton State Bank has 4.9 percent o f these deposits, and the result­
ing bank would have 5.6 percent. Hawkeye Bancorporation, however, controls
tw o other banks in this area w ith a combined deposit share of 7.9 percent.
Thus, the holding company already has the largest share of such deposits w ith
12.8 percent. This is only slightly more than the 12.3 percent share held by an
affiliate of Banks o f Iowa, Inc., Cedar Rapids, Iowa, a m ultibank holding
company controlling five banks w ith total deposits in excess o f $400 m illion.
The acquisition o f CSB w ould add only 0.7 percent to Hawkeye Bancorporation's deposit share in Houghton State Bank's legal branching area. On a state­
wide basis, Hawkeye Bancorporation is the th ird largest banking organization
in Iowa, w ith 3.5 percent o f to ta l commercial bank deposits, and the proposed
transaction w ould add less than one-half o f 1 percent to th a t total.
Based on the foregoing, the Board of Directors is o f the opinion th a t the
proposed transaction w ould not, in any section o f the co untry, substantially
lessen com petition, tend to create a m onopoly, or in any other manner be in
restraint of trade.*
Financial and Managerial Resources; Future Prospects. Houghton State
Bank and CSB have satisfactory financial and managerial resources and future
prospects, as would the resulting bank.
Convenience and Needs o f the C om m unity to be Served. The proposed
transaction would not affect the services presently offered in the areas where
Houghton State Bank now operates. Cumberland residents would benefit from
having a branch of a holding company affiliate nearby which would o ffe r
expanded banking services, including computerized record keeping, credit card
convenience, and tru st services.
Based on the foregoing, the Board o f Directors has concluded th a t approval
o f the application is warranted.

* F o r purposes o f assessing the c o m p e titiv e im p a c t o f th is proposal u n der th e B ank Merger
A c t, th e B oard o f D ire c to rs has ignored th e a c q u is itio n o f s to c k c o n tro l o f CSB b y th e
p resident o f H oug hton State B ank in J u ly 1973.




B A N K A B S O R P T IO N S A P P R O V E D BY T H E C O R P O R A T I O N

R e so u rce s
(in
th o u sa n d s
o f d o llars)

United Canal Bank
Bangor, Maine

61

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

T o be
o perated

1,188

1

1

1,170

1

to acquire certain assets and assume
the deposit liabilities o f

Colonial Industrial Bank
Bangor

Summary report by A tto rn e y General, March 1 1 ,1 9 7 5
United Bancorp operates no offices w ith in 50 miles o f Bangor other than its
de novo subsidiary, United Canal Bank, in Bangor. In view of the small size o f
Colonial, which is not a commercial bank, its acquisition by United Canal Bank
w ould not have a substantially adverse effect on either existing or potential
com petition.
Basis fo r Corporation approval, A p ril 11, 1975
United Canal Bank, Bangor, Maine (“ Canal"), a State nonmember insured
bank w ith total resources of $1,188,000 and total deposits of $426,000 as o f
February 14, 1975, has applied, pursuant to section 18(c) of the Federal
Deposit Insurance A ct, fo r the C orporation's p rio r consent to acquire certain
assets of and assume lia b ility to pay deposits made in Colonial Industrial Bank,
Bangor, Maine ("C o lo n ia l"), a noninsured State-chartered industrial bank w ith
total resources o f $1,170,100 and to ta l deposits of $908,800 as o f January 13,
1975. The tw o banks have separate quarters in the same building, and if the
transaction is consummated, the office o f Colonial w ould be p ro m p tly closed.
C om petition. Bangor (1970 population 33,168) is located in the eastern
part o f Maine, some 135 road-miles northeast o f Portland. It is the wholesale
and retail trade center fo r a large p ortion o f northern and eastern Maine.
Industries in the Bangor area manufacture footwear, paper, and textiles. During
the 1960s the population of Bangor declined by 14.8 percent, in contrast to a
statewide population increase of 2.4 percent, but this reflected the im pact o f
the deactivation o f Dow A ir Force Base (12,000 m ilita ry and civilian person­
nel). This fa c ility , now operated as Bangor International A irp o rt, has become
an im po rtan t source of income fo r the area, offsetting in part the depressed
conditions prevailing among the area's major industries. A modest im prove­
ment in the local economy has been reported during the past few years and
fu rth e r im provem ent is anticipated. Bangor's 1973 median household buying
level ($8,477) was only slightly below that of the State as a whole.
Both Canal and Colonial are located w ith in the Bangor-Brewer banking
market (comprising these adjacent cities together w ith nine surrounding
communities, all w ith in some 15 road-miles o f Bangor). Canal is a subsidiary o f
United Bancorp o f Maine, whose nearest other subsidiary is 55 miles from
Bangor. Colonial, which is uninsured, has only lim ited powers and cannot
branch de novo. It is not considered a commercial bank or an effective co m ­
petito r fo r deposits. In the 9 years since it was opened, Colonial has attained
only about $1 m illion in deposits, constituting less than 1 percent o f total
deposits in the local market. It had an operating loss in 1973 and significant
loan classifications at the last exam ination.



62

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

Six commercial banks operate a total of 24 offices in this market o f some
77,236 persons. This market is highly concentrated w ith three banks, all sub­
sidiaries o f bank holding companies, holding 97.2 percent o f the IPC deposits
as o f June 30, 1974, and operating 84 percent o f the banking offices. Canal has
been open only since January 10, 1975, and has n o t yet attained even
$500,000 in deposits. Together the tw o banks w ould hold only 1.2 percent o f
the total commercial bank deposits in the market. It is apparent th a t no signifi­
cant existing com petition between these tw o banks would be eliminated by the
proposed transaction and th a t no significant change would occur in the
commercial bank structure of the market.
The fo u r remaining industrial banks in Maine have been prohibited by a
1967 law from establishing de novo branches, and thus, no potential exists fo r
increased com petition between the tw o banks by such expansion in the future.
The Board o f Directors is therefore of the opinion th a t the proposed trans­
action w ould not, in any section of the co u n try, substantially lessen com peti­
tion, tend to create a m onopoly, or in any other manner be in restraint o f
trade.
Financial and Managerial Resources; Future Prospects. Colonial's financial
resources and future prospects are unfavorable. Canal has capable officers, its
resources are adequate, and its future prospects are favorable. The loan assets
that Canal w ould acquire by the proposed transaction exclude those of unsatis­
factory quality. W ith Canal's financial strength and managerial resources, the
future prospects o f the resulting bank are satisfactory.
Convenience and Needs o f the C om m unity to be Served. The proposed
purchase and assumption transaction would not materially affect the con­
venience and needs o f the market being served. Depositors of Colonial would
gain the assurance o f Federal deposit insurance and Canal would gain a small
deposit base from which to penetrate a highly concentrated market.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.

Farmers and Mechanics Savings Bank
M iddletow n, Connecticut

R e so u rce s
(in
th o u sa n d s
of d o lla rs)

In
o p e ra tio n

98,186

4

25,813

1

B a n k in g O ffic e s
T o be
operated

5

to merge with

Cromwell Savings Bank
Cromwell

Summary report by A tto rn e y General, May 8, 1975
Cromwell Savings operates its main office in Cromwell (population 7,400)
in Middlesex C ounty (population 115,000) and has approval fo r a second
office there. Farmers Savings operates tw o offices in M iddletow n (population
29,300), im mediately south o f Cromwell and also in Middlesex C ounty, and
single offices in Colchester and M ontville, about 20 miles east of M iddletow n.



B A N K A B S O R P T IO N S A P P R O V E D BY TH E C O R P O R A T I O N

63

In addition to the parties to this proposed merger, one savings and loan associa­
tion and tw o commercial banks are located in Cromwell, and tw o savings
banks, one savings and loan association, and fo u r commercial banks operate in
M iddletown.
Farmers Savings' main office in M iddletow n and Cromwell Savings' head­
quarters in Cromwell are separated by a distance of only about 4 -1/2 miles.
Thus, it appears th a t the proposed merger would eliminate existing com peti­
tion between the parties. There are, however, a number o f com petitive alter­
natives w ith in a 10-mile radius o f these adjacent comm unities. The proposed
merger w ill nevertheless eliminate existing com petition and increase concen­
tration in the M iddletown-C rom well area.
A ccordingly, we conclude that the proposed transaction would have adverse
com petitive effects.
Basis fo r C orporation approval, May 9, 1975
Farmers and Mechanics Savings Bank, M iddletow n, C onnecticut ("F a rm ­
ers"), an insured mutual savings bank w ith total resources o f $98,186,000 and
total deposits o f $89,300,000, has applied, pursuant to section 18(c) and other
provisions o f the Federal Deposit Insurance Act, fo r the C orporation's prior
consent to merge w ith Cromwell Savings Bank, Cromwell, C onnecticut
("C rom w ell B ank"), w ith total resources of $25,813,000 and total deposits of
$23,808,000, under the charter and w ith the title of Farmers. The main office
and the approved but unopened office of Cromwell Bank w ould become
branches of the resulting bank, increasing the number of its approved offices to
six.
C om petition. Farmers has its main office and one branch in M iddletow n,
Middlesex C ounty, and tw o branches in New London C ounty: one in C ol­
chester, 20 road-miles east of M iddletow n, and one in M ontville, 36 road-miles
southeast of M iddletown. Cromwell Bank has one office in Cromwell, M iddle­
sex C ounty, and has approval to open a second office in a shopping center in
Cromwell. The closest offices o f the tw o banks are about 4 -1/2 miles apart.
The market area most affected by this proposal would be those portions o f
Middlesex, New Haven, and H artford Counties that lie w ith in a 15-mile radius
of Cromwell. The population o f this trade area is approxim ately 300,000 and
includes the southern part of the H artford SMSA. Population increased during
the decade ending in 1970 by 12.8 percent in New Haven C ounty, 29.4 percent
in Middlesex C ounty, and 18.4 percent in H artford C ounty. The 1973 house­
hold median buying levels fo r the three counties all approxim ate the State
median o f $11,378. The economy of the immediate Cromwell area is rapidly
changing from an agricultural orientation, w ith a nursery-greenhouse complex
the major employer, to a largely residential area.
There are 61 offices o f 15 mutual savings banks and 24 offices o f 7 savings
and loan associations, having total deposits of approxim ately $2.6 billio n , in
the relevant market area. Farmers has 2.8 percent o f such deposits, ranking
11th, and Cromwell Bank has 0.9 percent, ranking 19th. While the areas served
by the tw o banks overlap to some extent, the proposed transaction would not
eliminate any significant am ount of com petition. The am ount of deposits each
bank now holds in the other's area is small and the shares of the total market
that the tw o banks hold are very low. There w ould continue to be an adequate
number o f other institutions in the area to provide the public w ith convenience
and choice among th r ift institutions.



64

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

L ittle prob a b ility exists fo r increased com petition to develop between
Farmers and Cromwell Bank in the future. Neither bank may branch into the
other's home office com m unity because o f the C onnecticut home office pro­
tection statute. Furtherm ore, Cromwell Bank has shown little inclination to
expand operations beyond its local com m unity, and it operated fo r over 100
years before attem pting to establish its firs t branch. Moreover, Crom well's
financial resources have been so strained in recent years th a t de novo branching
outside its protected com m unity is most unlikely.
The resulting bank w ould rank 9th in deposit size among all th r ift in s titu ­
tions in the trade area, holding 3.7 percent of total deposits, and 20th in
deposit size among mutual savings banks in Connecticut. In addition, the pro­
posed transaction w ould convert the home office of Cromwell into a branch
office of the resulting bank, thus elim inating home o ffice protection in C rom ­
well and allowing other mutual savings banks to branch into Cromwell. Several
have indicated their intention of seeking the necessary supervisory approvals to
do just that if the proposed merger is consummated.
The Board o f Directors has concluded that the proposed transaction would
not, in any section o f the co u n try, substantially lessen com petition, tend to
create a m onopoly, or in any other manner be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. Farmers has satis­
factory financial and managerial resources and favorable prospects fo r the
future, as would the resulting bank. Cromwell Bank has had to sell a substantial
portion o f its assets at a loss to honor prior lending com m itm ents, resulting in
lim ited surplus, low liq u id ity , and a shortage o f funds fo r additional mortgage
lending. Its managerial resources are adequate, as are its fu tu re prospects.
Convenience and Needs o f the C om m unity to be Served. The resulting bank
would offer somewhat expanded services to Cromwell Bank customers, includ­
ing an increased lending capacity on home mortgages. The merger should also
stimulate futu re com petition in the local Cromwell area through removal o f
home office protection.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.

R e so u rce s
(in
th o u sa n d s
o f d o lla rs)

Security Bank o f Oregon
Portland, Oregon

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

T o be
operated

47,960

8

35

333,150

27

to merge with

The Oregon Bank
Portland

Summary report by A tto rn e y General, A p ril 3, 1975
The proposed merger o f these tw o banks which are controlled by the same
holding company w ould not have an adverse effect on com petition.
Basis fo r C orporation approval, May 30, 1975
Security Bank o f Oregon, Portland, Oregon ("S e c u rity "), a State non­
member insured bank w ith total resources of $47,960,000 and total IPC de­



B A N K A B S O R P T IO N S A P P R O V E D BY T H E C O R P O R A T I O N

65

posits of $34,202,000, has applied, pursuant to section 18(c) and other pro­
visions o f the Federal Deposit Insurance A ct, fo r the C orporation's prio r
consent to merge w ith The Oregon Bank, Portland, Oregon ("O regon B ank"),
w ith tota l resources o f $333,150,000 and total IPC deposits o f $209,019,000.
The banks w ould merge under the charter o f Security and w ith the title “ The
Oregon B ank." Incident to the merger, the 30 approved offices of Oregon Bank
would become offices o f the resultant bank, the present main office of Oregon
Bank becoming the main office of the resultant bank. The present main office
and the 7 branches o f Security w ould become branches of the resultant bank,
which would thus have a total of 38 approved offices.
C om petition. This proposed transaction has the sole purpose o f enabling
Orbanco, Inc., a Portland-based registered bank holding company, to consoli­
date its operations in the State of Oregon. In A p ril 1969, Orbanco, Inc. ac­
quired 100 percent o f the common stock o f Oregon Bank. On A p ril 1, 1974,
the Board o f Governors o f the Federal Reserve System, acting pursuant to the
Bank Holding Company A ct, approved the application o f Orbanco, Inc. to
acquire 51 percent or more o f the voting shares of Security. More than 90
percent o f the voting shares o f Security are presently owned by Orbanco, Inc.
This proposed merger, accordingly, would not in itself change the structure o f
commercial banking in the State o f Oregon, nor the existing concentration o f
commercial bank resources.
The C orporation is o f the opinion th a t the proposed transaction w ould not,
in any section o f the co untry, substantially lessen co m p e titio n , tend to create a
monopoly, or in any other manner be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. Prior to its acquisi­
tion in A p ril 1974, the financial and managerial resources o f Security were
unsatisfactory. The fu tu re prospects o f Security are clearly more favorable as a
part o f Orbanco, Inc. than as an independent e n tity . Financial and managerial
resources o f Oregon Bank are satisfactory and its fu tu re prospects are fa vo r­
able. The resultant bank w ould have the satisfactory financial and managerial
resources, and the favorable fu tu re prospects, of Oregon Bank.
Convenience and Needs o f the C om m unity to be Served. No office o f either
bank would be discontinued fo llo w in g the merger so customers o f Security and
Oregon Bank w ould have an increased number of locations in the c ity o f
Portland and nearby suburbs at which to conduct their banking business.
On the basis o f the foregoing inform ation, the Corporation has concluded
that approval o f the application is warranted.

Mid-State Bank and T rust Company
A ltoona, Pennsylvania

B a n k in g O ffic e s

R e so u rce s
(in
th o u sa n d s
o f d o llars)

In
o p e ra tio n

193,953

17

37,437

2

to merge with

The First National Bank o f Philipsburg
Philipsburg



T o be
operated

19

66

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

Summary report by A tto rn e y General, December 24, 1974
Mid-State Bank and Philipsburg Bank are headquartered about 32 miles
apart and the nearest offices o f the tw o banks are 23 miles apart. According to
the application, neither bank draws significant business from the service area o f
the other, and topography inhibits the development of com petition between
them. Thus, it does not appear th a t the proposed transaction w ould eliminate
substantial existing com petition.
Philipsburg Bank enjoys a leading position in the Philipsburg area which
straddles the county line between Clearfield and Centre Counties. Mid-State
Bank is one of the largest banks that could legally be perm itted to open new
branches in this area. The nature of the Philipsburg area, however, w ith a
decline in population projected over the next several years, indicates th a t this
transaction w ill not eliminate substantial potential com petition.
Basis fo r C orporation approval, May 30, 1975
Mid-State Bank and T rust Company, A ltoona, Pennsylvania ("M id -S ta te "), a
State nonmember insured bank w ith total resources o f $193,953,000 and total
IPC deposits of $160,643,000, has applied, pursuant to section 18(c) and other
provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's p rio r
consent to merge w ith The First National Bank of Philipsburg, Philipsburg,
Pennsylvania ("F N B P hilipsburg"), w ith total resources o f $37,437,000 and
total IPC deposits of $29,797,000, under the charter and title o f Mid-State. As
an incident to the merger, the 3 authorized offices o f FNB Philipsburg would
become branches of the resultant bank, increasing the number o f its authorized
offices to 21.
C om petition. Mid-State operates 11 offices in Blair C ounty and 6 offices in
Centre C ounty, both in central Pennsylvania. It also has approval to establish a
branch in Bellefonte, Centre County. Except fo r A ltoona (1970 population
63,115), most of Blair C ounty (population 135,356) is forested or used fo r
agricultural purposes. The economy o f Centre C ounty (population 99,267) is
dominated by Pennsylvania State University, whose main campus is at State
College (population 33,778, up 50.7 percent from 1960). The university has an
enrollm ent o f about 30,000. Centre County's median household buying level in
1973 was $9,014 compared to the State's $9,588.
FNB Philipsburg operates its main office in Philipsburg in the extreme
western po rtion o f Centre C ounty and one branch in K ylertow n, about 7 miles
north in Clearfield C ounty. It also has approval fo r an additional branch in the
immediate Philipsburg area. Philipsburg (population 3,700) is effectively
separated from the rest of Centre C ounty by the Allegheny Mountains. This
and the fact that State forest land lies to the immediate east o f Philipsburg
have forced expansion to the west into Clearfield C ounty. Once o f prim ary
importance, coal mining still contributes to the economy o f the area although
manufacturing (garments, bricks, cigars) has assumed greater importance. The
declining population trend is expected to continue, and the economy of the
area is virtually stagnant.
The area in which the effect of the proposed merger would be most im me­
diate and direct is best approximated by an area lying w ith in 15 road-miles o f
Philipsburg. W ithin this area 6 commercial banks operate 13 offices. Ranking
second, FNB Philipsburg holds 22.6 percent of the area's $132 m illion in
commercial bank IPC deposits. C ounty National Bank, Clearfield, holds 41.0



B A N K A B S O R P T IO N S A P P R O V E D BY T H E C O R P O R A T I O N

67

percent o f this market and Clearfield Bank and Trust Company, 22.0 percent.
Mid-State's nearest offices to Philipsburg are in State College, about 24 miles
east over the Bald Eagle Ridge of the Allegheny Mountains, and although there
is some m inor com m utation fro m Philipsburg to State College fo r em ploym ent,
the tw o banks are not com petitive w ith each other. Mid-State and FNB Philips­
burg serve basically separate markets, and no significant existing com petition
between them w ould be eliminated by th e ir proposed merger.
Pennsylvania law permits a bank to branch de novo th ro u g h o u t its home
office county and contiguous counties. A ccordingly, Mid-State could branch
throughout Blair, Cambria, Clearfield, Centre, H untingdon, and Bedford
Counties and has demonstrated its a b ility to branch de novo successfully in
the past. It is d o u b tfu l, however, that Mid-State would fin d the Philipsburg
area desirable because o f the sparse and declining population and the number
of banking offices already established in the area. A lthough FNB Philipsburg
has the financial and managerial resources to branch into Mid-State's service
areas, it has maintained a Philipsburg orientation th roughout its 80-year his­
to ry, and it appears u n like ly that it w ould now challenge the much larger banks
found in Mid-State's service areas.
W ithin the 6-county legal branching area o f Mid-State, 46 commercial banks
operate 168 offices. Mid-State ranks firs t w ith 13.0 percent of the $1.2 b illion
in commercial bank IPC deposits. First National has 2.5 percent o f these
deposits, and the resultant bank would therefore widen its lead over the second
ranking bank's 11.6 percent share. The six-county region is relatively uncon­
centrated, however, and the proposed merger is unlikely to affect adversely the
structure of commercial bank com petition in the future.
In accordance w ith Corporation policy enunciated in its decision of De­
cember 1, 1970, w ith respect to the proposed merger of the Pennyslvania Bank
and Trust Company, Titusville, and The Exchange Bank and Trust Company,
Franklin, (and affirm ed in similar subsequent decisions) Mid-State w ould be
required, if this application is approved, to divest itself w ith in a reasonable
period of tim e of the stock it holds in any Pennsylvania bank that can branch
or merge under Pennsylvania law into one or more of the six counties in d i­
cated. This requirement, in view o f the share o f the six-county market which
Mid-State w ould control after the proposed merger, is considered advisable in
order to avoid any artificia l restraint on banking com petition in th a t area and
to discourage the fu rth e r concentration of its commercial bank resources.
For the reasons stated and w ith the contemplated divestiture o f Mid-State's
investment in the stock o f actual and potential com petitors, the Board o f
Directors is of the opinion th a t the proposed merger would not, in any section
of the coun try, substantially lessen com petition, tend to create a m onopoly, or
in any other manner be in restraint o f trade.
Financial and Managerial Resources; Future Prospects. Both banks have
satisfactory financial and managerial resources and future prospects, and the
same w ould be true o f the resultant bank.
Convenience and Needs o f the C om m unity to be Served. The proposed
merger w ould bring to customers o f FNB Philipsburg an aggressive bank w ith a
much larger lending lim it (nearly $2 m illio n ), trust services, more com pre­
hensive loan processing services, and much greater expertise in handling a wider
variety o f loans. It should also have the effect o f intensifying co m petition w ith
the tw o banks headquartered in Clearfield.



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

68

Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.

Northern Central Bank and Trust Company
W illiam sport, Pennsylvania
(change title to N orth Central Bank)

B a n k in g O ffice s

R e so u rce s
(in
th o u sa n d s
o f d o llars)

In
o p e ra tio n

T o be
operated

155,920

11

13

15,459

2

to merge with

The First National Bank o f Dushore
Dushore

Summary report by A tto rn e y General, February 25, 1975
Dushore Bank is the larger of tw o small banks in Sullivan C ounty (popula­
tion 6,000). N orthern Bank operates offices in Bradford C ounty, a p p ro xi­
mately 35 miles north o f Dushore Bank, and in Lycom ing and N orthum berland
Counties, at least 25 miles southwest o f Dushore Bank. A lthough there is some
overlap between the service areas o f the parties to this transaction, it does not
appear tha t the merger w ould eliminate substantial existing com petition. And
in view o f the nature o f the area served by Dushore Bank, together w ith its
relatively small absolute size, we conclude that the merger w ould not eliminate
substantial potential com petition.
Basis fo r C orporation approval, May 30, 1975
Northern Central Bank and Trust Company, W illiam sport, Pennsylvania
("C e n tra l"), a State nonmember insured bank w ith total resources of
$155,920,000 and total IPC deposits o f $123,681,000, has applied, pursuant
to section 18(c) and other provisions o f the Federal Deposit Insurance A ct, fo r
the C orporation's prior consent to merge w ith The First National Bank o f
Dushore, Dushore, Pennsylvania ("F N B D ushore"), w ith total resources o f
$15,459,000 and total IPC deposits of $13,464,000. These banks w ould merge
under the charter of Central and w ith the title "N o rth e rn Central B ank." The
resultant bank would have a total of 13 offices, including the 2 offices pres­
ently operated by FNB Dushore.
Com petition. Central operates a total of 11 offices: its main office and 2
branches in W illiam sport and 2 branches in the Montgomery area, about 11
road-miles southeast of W illiam sport, all in Lycom ing C ounty; 2 branches in
the M ilto n area, about 25 road-miles southeast o f W illiam sport, and 3 branches
in the Sunbury area, some 36 road-miles southeast o f W illiam sport, all in
N orthum berland C ounty; and 1 branch in Athens, in northern Bradford C oun­
ty, approxim ately 80 road-miles northeast of W illiam sport.
FNB Dushore operates its tw o offices in Sullivan C ounty, its main o ffice in
the borough o f Dushore (1970 population 718) and a lim ited service fa c ility in
Eagles Mere (population 157), a borough located some 13 road-miles southwest



B A N K A B S O R P T IO N S A P P R O V E D BY T H E C O R P O R A T I O N

69

of Dushore. Sullivan C ounty (population 5,961) is in major part mountainous
and forested. Its economy is largely dependent on recreational activities and
wood products industries. The 1973 median household buying level of the
county ($7,410) lagged th a t o f the State by 23 percent.
The com petitive im pact of the proposed merger w ould be most immediate
and direct in the sparsely populated local area o f northeastern Pennsylvania
which extends about 15 miles from Dushore and Eagles Mere, the location o f
FNB Dushore's tw o offices. This area includes most o f Sullivan C ounty, the
southeastern portio n of Bradford C ounty, the far western portion of W yoming
County, and the far eastern p ortion o f Lycom ing C ounty. Eight commercial
banks having 10 offices serve the market, FNB Dushore having the largest share
(26.1 percent) of total commercial bank IPC deposits. Central is not located in
this market, its nearest office being about 35 miles away from Eagles Mere.
Several offices of competing banks intervene. The application indicates that
only a m inim al am ount o f business is drawn by either proponent fro m the
service area of the other, and thus, it appears that no significant existing
com petition between the tw o banks w ould be eliminated by their proposed
merger.
Pennsylvania law permits a commercial bank to branch de novo in its main
office county and in all counties contiguous thereto. Central may, accordingly,
enter de novo locations in Sullivan C ounty like Dushore and Eagles Mere, but
in view o f the small population to be served, the area's below average buying
levels, and the 10 existing commercial bank offices, de novo entry cannot
reasonably be expected. FNB Dushore, fo r its part, has an unaggressive manage­
ment and presently evidences no interest in de novo expansion. The proposed
merger, thus, w ould eliminate no significant potential fo r increased com peti­
tion between the tw o banks through de novo branching in the future.
W ithin the 10-county region in which Central may expand de novo or by
merger (its maximum potential market since Pennsylvania law does not perm it
the operation of m ultibank holding companies), a total of 57 commercial
banks operate 150 offices and hold area IPC deposits aggregating $1,292
m illion. Central has 9.6 percent— the largest share— o f such deposits and 7.3
percent o f the area's commercial banking offices. The proposed transaction
would increase Central's IPC deposit share in this region to 10.7 percent and its
share o f commercial banking offices to 8.7 percent. Central, together w ith the
fo u r next ranking banks in the region, w ould then hold an aggregate of 34.9
percent o f such deposits and 31.3 percent o f such offices. In view of the
relatively unconcentrated nature o f this 10-county area and the presence o f
other com petitors o f substantial size, it does not appear that the proposed
merger w ould have any significant adverse effect on the concentration o f bank­
ing resources or the future structure of commercial banking in this relevant
area.
Linder these circumstances, the Board o f Directors is o f the opinion th a t the
proposed merger w ould not, in any section o f the country, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. Both Central and
FNB Dushore have satisfactory financial and managerial resources. Their future
prospects are favorable. The resultant bank would have satisfactory financial
and managerial resources and favorable future prospects.



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

70

Convenience and Needs o f the C om m unity to be Served. The merger w ould
bring the specialized services o f one o f the region's major banks to the market
area o f FNB Dushore. More sophisticated credit services w ould be offered by
an aggressive management, operating w ith a lending lim it o f $1.2 m illion.
C redit cards and overdraft banking, data processing, and tru st services would
also be available fo r the firs t tim e at the FNB Dushore locations.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.

R e so u rce s
(in
th o u sa n d s
o f d o lla rs)

The Bank o f Cowan
Cowan, Tennessee
(change title to Franklin C ounty Bank)

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

8,058

1

5,423

1

T o be
operated

2

to merge with

Bank o f Sewanee
Sewanee'

Summary report by A tto rn e y General, August 22, 1974
The com m unities of Cowan (population 1,979) and Sewanee (population
1,628) are located about 6 miles apart in east-central Franklin C ounty. There
are no com petitive alternatives in the intervening area. Thus, it appears th a t the
proposed merger w ould eliminate existing com petition and increase concentra­
tion in commercial banking in Franklin County.
Basis fo r C orporation approval, June 11, 1975
The Bank o f Cowan, Cowan, Tennessee ("Cowan B ank"), a State non­
member insured bank w ith to ta l resources of $8,058,000 and total IPC de­
posits of $5,258,000, has applied, pursuant to section 18(c) and other pro­
visions o f the Federal Deposit Insurance A ct, fo r the C orporation's p rio r
consent to merge w ith Bank o f Sewanee, Sewanee, Tennessee ("Sewanee
B ank"), w ith total resources of $5,423,000 and total IPC deposits o f
$3,255,000. The banks w ould merge under the charter of Cowan Bank w ith
the title "F ra n k lin C ounty B ank" and, as an incident to the merger, the one
office of Sewanee Bank would become a branch of the resultant bank.
C om petition. On November 15, 1973, Charles N. Turner and fo u r other
individuals purchased 93 percent o f the outstanding stock o f Cowan Bank. Mr.
Turner owns 18.3 percent o f the stock, is a director of the bank, and represents
the ownership group in exercising effective control o f the bank. He has been
Chairman o f the Board of Sewanee Bank since November 1, 1971, and owns
32.2 percent o f the outstanding stock o f that bank. The banks had operated
independently fo r approxim ately 65 years p rio r to Mr. Turner's involvement.
While it could be contended th a t no meaningful co m p e titio n between the tw o
banks now or in the future w ould be eliminated by the proposed merger



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71

because o f their a ffilia tio n , the C orporation has consistently taken the position
that the com petitive situation at the tim e of the banks' a ffilia tio n is relevant in
an application such as this in order to avoid widespread evasion of the purposes
of the Bank Merger A ct. Since the situation in late 1973 was very much like
the present fo r the relevant market area, w ith the same banks sharing approx­
imately the same percentages of the market, the fo llo w in g analysis is based on
current data.
Cowan Bank's only office is in the tow n o f Cowan (population 1,772) in the
northeastern part of Franklin C ounty, Tennessee. The bank has approval to
establish a branch in Winchester, the county seat, 7 miles west o f Cowan.
Cowan Bank is the th ird largest commercial bank in the county, w ith 11.5
percent o f total IPC deposits.*
Sewanee Bank is located in Sewanee (population 1,886), near the eastern
border o f Franklin C ounty. It holds 7.4 percent of Franklin C ounty's total IPC
deposits, the smallest share of the five banks operating therein.
Franklin C ounty (population 27,289 in 1970, an increase o f 6.9 percent
from 1960) is in southeastern Tennessee and borders on Alabama. It is p ri­
marily an agricultural county, w ith 78.9 percent of the population living in
rural areas, and has no major m etropolitan centers. The median household
buying level fo r the county was $6,886 in 1973, 1 1.9 percent below the State
median.
Although Cowan Bank and Sewanee Bank are only 6 miles apart in n o rth ­
eastern Franklin C ounty, the terrain minimizes com petition between the tw o
banks. Sewanee is situated in a m ountainous locale w hile the Cowan v ic in ity is
flat. The major portion of Sewanee Bank's business is derived from the imme­
diate Sewanee area and little e ffo rt has been made to expand its trade area, as
evidenced by its modest growth.
The proposed merger w ould have its most immediate im pact in Sewanee.
This small unincorporated com m unity is highly dependent upon the University
of the South, the main em ployer, and most of Sewanee Bank's business is
related in some way to the college and its activities. Given these facts, it
appears that no significant existing com petition between the tw o banks would
be eliminated by the proposed merger. For any dissatisfied customers, there
would be three other banks remaining in Franklin C ounty as well as a bank in
Tracy C ity (G rundy C ounty), 14 miles northeast o f Sewanee, a reasonable
number o f alternatives relative to the population served.
Either of the participating banks could legally establish de novo branches
elsewhere in Franklin C ounty, including in the com m unity where the other is
located. This does not appear likely, however, because of the lack of significant
population centers, the lim ited managerial and financial resources o f the tw o
banks, and the. low population per office fo r each existing bank office in
Franklin C ounty, i.e., 2,729 persons, 30 percent below the State average.
Although Cowan Bank recently received approval to establish a branch in
Winchester, the largest population center in the county, it is not likely to
branch de novo into less populated sections of the county. The proposed
merger w ould, therefore, eliminate no significant potential fo r increased com ­
petition between the tw o banks in the future.

^Percentage shares as o f June 30 , 1974.




72

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

In Franklin C ounty, which is also the maximum branching and merging area
for the proponents, there are 5 commercial banks operating 10 offices w ith
aggregate IPC deposits of $43.9 m illion. The m arket is dom inated by its tw o
largest banks, w hich together hold 73.7 percent o f the total IPC deposits. The
resultant bank, w ith 18.9 percent of such deposits, should be better able to
compete w ith these leading local banks.
The Board o f Directors is o f the opinion th a t the 1973 a ffilia tio n did not, in
any section o f the co u n try, substantially lessen com petition, tend to create a
m onopoly, or in any other manner restrain trade. This being the case, the
Corporation finds th a t the a ffilia tio n o f the proponents in 1973 did not have
any significant anticom petitive effects and, accordingly, th a t the application
now before it should also be viewed as having no significant effects on com peti­
tion in the relevant local market.
Financial and Managerial Resources; Future Prospects. Both Cowan Bank
and Sewanee Bank have adequate financial and managerial resources fo r the
business they do and favorable prospects fo r the future, as would the resultant
bank.
Convenience and Needs o f the C om m unity to be Served. The proposed
merger w ould provide customers in the Cowan and Sewanee areas w ith a larger
bank, allowing expanded services and a larger lending lim it.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.

Re so u rce s
(in
th o u sa n d s
o f d o llars)

The First National Bank of Boston
Boston, Massachusetts

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

8,094,391

38

T o be
operated

38

to acquire the assets and assume
the deposit liabilities o f

Luxembourg Branch o f Bank o f
Boston International
New Y o rk, New Y o rk

78,431

1

Summary report by A tto rn e y General, May 12, 1975
We have reviewed this proposed transaction and conclude th a t it would not
have a substantial com petitive impact.
Basis fo r C orporation approval, June 19, 1975
The First National Bank of Boston, Boston, Massachusetts ("F N B B "), a
national banking association having total resources of $8,094,391,000 and
total deposits o f $6,628,468,000, has applied, pursuant to section 18(c) and
other provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's
prior consent to acquire assets of and assume the lia b ility to pay deposits made
in the Luxembourg Branch o f Bank of Boston International, New Y o rk, New



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73

Y o rk (" B B I" ), a noninsured, w h o lly owned Edge A c t subsidiary o f FNBB. This
branch has total resources of $78,431,000 and total deposits of $76,018,000.
The proposed transaction is in e ffect a corporate reorganization whose pur­
pose is to change the legal form under w hich FNBB conducts business in the
Luxembourg market. The transaction consummated, FNBB w ould carry on
essentially the same business at its Luxembourg Branch as has heretofore been
conducted by B B I.
C om petition. It is evident th a t the proposed transaction w ould have no
effect on either existing or potential com petition between FNBB and BBI or
on the structure o f commercial banking in any relevant area.
Financial and Managerial Resources; Future Prospects. These factors are
acceptable fo r both FNBB and BBI. Future prospects fo r the banking office
involved in the proposed transaction appear to be more favorable as a branch
of FNBB than if it were to continue as a branch of BBI.
Convenience and Needs o f the C om m unity to be Served. The proposal
would have no effect on the convenience and needs of any o f FNBB's domestic
markets. In the Grand Duchy of Luxembourg, the office o f FNBB, which
follo w ing consumm ation o f the transaction w ould represent the $8 b illio n
parent in stitu tio n , should provide a more effective attraction fo r business in
the international m arket than has heretofore been provided by a branch of a
subsidiary o f FNBB.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.

Re so u rce s
(in

Centinela Bank
Inglewood, California
(change title to Tokai Bank
o f California)

B a n k in g O ffic e s

th ou sands

In

o f d o lla rs)

o p e ra tio n

T o be
operated

27,871

6

7

44,750

1

to m erge w ith

Tokai Bank o f C alifornia
Los Angeles

Summary report by A tto rn e y General, A pril 29, 1975
We have reviewed this proposed transaction and conclude th a t it would not
have a substantial com petitive impact.
Basis fo r C orporation approval, July 11, 1975
Centinela Bank, Inglewood, California ("C e n tin e la "), a State nonmember
insured bank w ith total resources of $27,871,000 and total IPC deposits o f
$19,767,000, has applied, pursuant to section 18(c) and other provisions of the
Federal Deposit Insurance A ct, fo r the C orporation's prio r consent to merge
w ith Tokai Bank of California, Los Angeles, C alifornia ("T o k a i-C a l"), a State
nonmember insured bank w ith total resources of $44,750,000 and total IPC



74

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

deposits of $32,549,000, under the charter o f Centinela and w ith the title
"T o ka i Bank o f C a lifo rn ia ," and to establish the sole office o f Tokai-Cal as a
branch o f the resultant bank. Consent is also requested that, follow ing the
merger, the main office o f Centinela be designated a branch and th a t the
branch at 534 West S ixth Street, Los Angeles, California (the present office o f
Tokai-Cal), be designated the main office. In another application, consent has
been requested to issue capital notes and to retire these notes at m a tu rity, 7
years after date of issue.
C om petition. Centinela operates its six offices in Southern C alifornia: the
main office and three branches (including one seasonal fa c ility ) in southern Los
Angeles C ounty and tw o branches in southern Orange C ounty. Its Los Angeles
C ounty offices serve the c ity of Inglewood and adjacent Lennox, an u n in co r­
porated com m unity (aggregate population 106,100) some 11 miles west o f
dow ntow n Los Angeles; Playa del Rey, a modest-sized co m m u n ity about 5
miles west o f the main o ffice; and Hermosa Beach (population 17,412), located
some 8 miles south o f the main office. Centinela is 93rd largest o f C alifornia's
commercial banks w ith 0.03 percent of their total deposits.
Tokai-Cal, which opened in m id-1974, has its sole office in dow ntow n Los
Angeles. Owned by Tokai Bank, Ltd., Nagoya, Japan, its business is largely that
of a wholesale bank, engaged in international finance. Tokai-Cal ranks 70th
largest o f the State's commercial banks, holding 0.04 percent o f their total
deposits.
No office o f Centinela, other than its seasonal fa c ility operated during Los
Angeles' annual Boat Show, is located w ith in 10.8 miles of Tokai-Cal, and
numerous offices of other commercial banks intervene. The tw o banks serve
separate trade areas w ith in the Los Angeles-Long Beach SMSA, Tokai-Cal
does not operate in Orange C ounty, and there appear to be no common cus­
tomers. The tw o banks combined hold less than 0.2 percent o f all commercial
bank IPC deposits in the Los Angeles-Long Beach market, the offices o f each
are subject to com petition by one or more of C alifornia's large branch banks,
and it is obvious th a t the proposed merger w ould eliminate no significant
existing com petition between them and would not substantially change the
structure of commercial bank com petition w ith in the relevant local banking
markets.
Although California law permits statewide de novo branching, Tokai-Cal, in
view o f the specialized nature of its business, w ould probably not fin d it
necessary to expand de novo. Should it choose to diversify the scope o f its
business by de novo branching to include retail banking, it w ould be u n like ly
to enter de novo the highly com petitive markets in which Centinela is now
represented. Centinela, fo r its part, lacks the financial and managerial resources
to engage in additional de novo branching fo r the foreseeable future. Moreover,
considering the modest size o f each bank and the intense com petition which
exists in the areas in w hich each is represented, their proposed merger is un ­
likely to have any perceptible impact on future com petition either in Los
Angeles C ounty or in Orange C ounty.
Commercial banking in California is concentrated to a high degree, w ith five
large branch banks co n trolling 78.7 percent of the deposits held by all 186 o f
this State's commercial banks. By the proposed merger, Centinela w ould be­
come the 49th largest commercial bank in the State, but it w ould then hold
only 0.07 percent of the State's total commercial bank deposits.



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75

The Board o f Directors, fo r the reasons stated, is o f the opinion th a t the
proposed merger w ould not, in any section o f the country, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. Tokai-Cal appears to
have adequate financial and managerial resources. Centinela has had poor earn­
ings and weak management, tw o problems which should be resolved by the
proposed merger. The resultant bank w ould have satisfactory financial and
managerial resources and favorable fu tu re prospects.
Convenience and Needs o f the Com m unities to be Served. No immediate or
significant change in services now available at Tokai-Cal's office is expected by
virtue of the proposed merger. A t Centinela's offices, there w ould be some
broadening o f international financial services, based on the expertise of TokaiCal's management. Lending lim its o f the resultant bank would be increased to
$190,000 unsecured and $380,000 secured. These additional services and the
increased lending capability may prove attractive to a small segment o f Centinela's clientele, but they w ould not be decisive factors in favor of approval but
fo r the absence o f anticom petitive im pact and the presence o f some favorable
banking factors.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.

First-Citizens Bank and Trust Company
o f South Carolina
Columbia, South Carolina

R e so u rce s
1;nn
U
th o u sa n d s
o f d o llars)

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

217,893

38

11,293

4

T o be
operated

42

to purchase the assets and assume
the deposit liabilities of

First State National Bank
Jackson

Summary report by A tto rn e y General, June 19, 1975
We have reviewed this proposed transaction and conclude th a t it would not
have a substantial com petitive impact.
Basis fo r Corporation approval, August 1, 1975
First-Citizens Bank and Trust Company o f South Carolina, Columbia, South
Carolina ("C itize n s "), a State nonmember insured bank w ith total resources o f
$217,893,000 and IPC deposits of $159,488,000, has made application, pur­
suant to section 18(c) and other provisions of the Federal Deposit Insurance
A ct, fo r the C orporation's prior consent to purchase the assets o f and assume
lia b ility to pay deposits made in First State National Bank, Jackson, South
Carolina ("F irs t S ta te "), w ith total assets of $11,293,000 and IPC deposits o f



76

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

$9,519,000, and to establish as branches the fo u r offices presently operated by
First State. A pplication has also been made pursuant to section 18(i) of said
A ct fo r the C orporation's advance consent to retire a capital note in the p rin ­
cipal am ount o f $3,100,000 which is being sold to another bank by Citizens as
an integral part of this transaction.
C om petition. Citizens operates a total o f 38 offices: its main office and 10
branches in Columbia, the State's capital, and its suburbs; 6 branches in the
Charleston area o f southeastern South Carolina; 5 branches in the Spartanburg
area o f northwestern South Carolina; and 16 branches in various other n o rth ­
ern and eastern locations. Citizens holds the sixth largest share, 4.8 percent, o f
the IPC deposits held by all 90 commercial banks in the State.
First State has its main office in the tow n o f Jackson (population 1,928) in
western South Carolina near Augusta, Georgia, and one branch each in Beech
Island and Belvedere, tw o small unincorporated com m unities located some 8
and 19 road-miles, respectively, northwest of the main o ffice; all o f these
offices are in southwestern Aiken C ounty. One additional branch is located in
the tow n o f Saluda (population 2,442) in central Saluda C ounty, some 56
road-miles north o f the main office.
First State operates in tw o local markets: one comprising Augusta, Georgia,
its environs, and the western half o f Aiken C ounty, and the second com prising
Saluda C ounty. The form er had an estimated population o f 93,800 in 1970, a
decrease o f some 6.1 percent during the preceding decade. The A iken C ounty
portion o f this market is agricultural w ith many inhabitants finding em p lo y­
ment either in a plant o f the A to m ic Energy Commission, situated im m ediately
to the south, or in Augusta. Aiken C ounty as a whole had a 1973 median
household buying level of $9,848, some 18 percent above th a t o f South Caro­
lina. Augusta's median level ($6,608), however, lagged Georgia's median by
23.5 percent. A total o f 8 commercial banks operate 34 offices in this market.
Of the IPC deposits held by these offices, First State has the seventh largest
share, 1.8 percent. O nly tw o banks operate in Saluda C ounty (population
14,528). This county, largely agricultural, had a 1973 median buying level o f
$7,466— 10.5 percent below th a t o f South Carolina as a whole. First State has
20.2 percent o f Saluda County's commercial bank IPC deposits, w ith Bankers
Trust of South Carolina, the State's th ird largest bank, holding 79.8 percent.
Citizens is not represented in either the Augusta-Aiken m arket or in Saluda
C ounty. Its office closest to First State is a branch in West Columbia, a city
some 45 road-miles east of First State's Saluda Branch. Citizens does not draw
a significant portion o f its loans or deposits from First State's markets, al­
though some $2 m illion in First State's loans were originated by a loan produc­
tion office (since closed) in Citizens' headquarters city. C om petition presently
existing between the tw o banks does not appear to be significant.
A lthough statewide de novo branching is perm itted by South Carolina law,
First State, because of existing managerial and financial problems, does not
have the resources to undertake such expansion. Citizens, in contrast, has both
the capability and expertise to branch de novo, but would likely find other
areas o f South Carolina more attractive fo r such activity than Saluda C ounty,
an area having a stagnant population and low buying levels, or western A iken
County, where the incorporated comm unities are all small. To the extent the
Augusta-Aiken market becomes attractive fo r fu rth e r de novo branching, there
are at least tw o South Carolina branch banks larger than Citizens th a t would



B A N K A B S O R P T IO N S A P P R O V E D BY T H E C O R P O R A T I O N

77

remain as potential entrants. A n y loss o f potential com petition between
Citizens and First State thus appears to be relatively inconsequential.
In South Carolina as a whole, the transaction w ould increase Citizens' share
of commercial bank IPC deposits from 4.8 percent to 5.1 percent. The bank
would continue to be sixth largest o f the State's commercial banks.
For the reasons stated, the Board of Directors is o f the opinion th a t the
proposed transaction w ould not, in any section o f the country, substantially
lessen com petition, tend to create a m onopoly, or in any other manner be in
restraint of trade.
Financial and Managerial Resources; Future Prospects. The financial and
managerial resources of Citizens are satisfactory; those of First State are not. It
has experienced heavy loan losses and its earnings have been in a negative state
fo r the last year and a half. W ith the increase in capital funds required by the
State a uth ority as a condition fo r the approval of this transaction, fu tu re
prospects of Citizens fo llo w in g consummation o f the proposal are favorable.
Convenience and Needs o f the Communities to be Served. Citizens' acquisi­
tion o f the assets and deposits o f First State and the concurrent establishment
of the latter's fo u r offices as branches of Citizens w ould bring to customers o f
First State, in southwestern Aiken County and in Saluda C ounty, a bank w ith
increased credit capability, a lending lim it raised to more than $1 m illion, tru st
facilities, and expanded data processing facilities. A va ila b ility of these
broadened services, together w ith the payment of a higher rate o f interest on
tw o types o f savings accounts, should stim ulate com petition in the markets
involved to the benefit o f inhabitants and businessmen alike.
Based on the foregoing, the Board of Directors has concluded th a t approval
of the tw o applications is warranted.

The Bank o f T o kyo o f California
San Francisco, California

R e so u rce s
(in
th o u sa n d s
o f d o llars)

In
op e ra tio n

916,995

25

884,108

74

B a n k in g O ffic e s
T o be
operated

99

to purchase the assets and assume
the deposit liabilities o f

Southern California First National Bank
San Diego

Summary report by A tto rn e y General, July 25, 1975
Ten o f A pplicant's 23 banking offices are located in the 3 southern Cali­
fornia counties of San Diego (1 office), Los Angeles (8 offices), and Orange (1
office). A ll 72 of Bank's existing offices are located w ith in this 3-county area,
w ith several offices in relatively close p ro x im ity to those of A pplicant. Thus, it
appears that the proposed transaction may eliminate some existing com petition
between the parties.



78

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

However, it does n o t appear that concentration in commercial banking
would be substantially increased in any relevant banking market. A lthough
Bank ranks second among the banks w ith offices in San Diego C ounty and
accounts fo r approxim ately 18 percent of total county deposits, A pplicant,
w ith a single San Diego branch, holds only about 0.5 percent of total county
deposits. In Los Angeles C ounty, A pplicant holds approxim ately 1.3 percent o f
total county deposits while Bank holds about 0.4 percent, fo r a combined total
of less than 2 percent. In Orange County, A p p lica n t holds less than 0.6 percent
of total deposits and Bank approxim ately 4 percent, fo r a combined total o f
less than 5 percent. Nor does it appear that concentration w ould be signifi­
cantly increased in any smaller geographic areas. In the cities of Torrance and
Santa Ana, where both parties maintain branches, the combined shares o f total
city deposits are approxim ately 1.4 percent and 4 percent, respectively.
Thus, while the proposed transaction may eliminate some existing com peti­
tion between the parties, we conclude that concentration w ould not be signifi­
cantly increased in any relevant banking markets. And while A pplicant could
expand its operations in each o f the areas presently served by Bank— particu­
larly in San Diego, where Bank enjoys a significant market po sitio n — the effects
of the transaction on potential com petition are diminished by the existence o f
other large commercial banks w ith significant expansion or entry capability.

Basis fo r Corporation approval, August 28, 1975
The Bank o f T o kyo o f California, San Francisco, California ("C a lifo rn ia
T o k y o ” ), a State nonmember insured bank having total resources o f
$916,995,000 and total IPC deposits o f $479,873,000 as o f December 31,
1974, has applied, pursuant to section 18(c) and other provisions o f the Fed­
eral Deposit Insurance A ct, fo r the C orporation's p rio r consent to purchase the
assets of and assume the lia b ility to pay deposits made in Southern California
First National Bank, San Diego, California ("F N B San D iego"), w ith total
resources o f $884,108,000 and total IPC deposits of $704,234,000 as o f
December 31, 1974. The proposed transaction w ould be effected under the
charter and title o f California T o k y o and, incident to the transaction, the 74
existing offices and 5 approved but unopened offices of FNB San Diego w ould
become branches o f the resultant bank, increasing the number of its authorized
offices to 105. California T okyo, subsequent to consummation of the proposal,
would operate under the title "C a lifo rn ia First Bank."
C om petition. California T okyo operates a total o f 25 offices in California. It
has 13 offices in N orthern California: 2 including its main office in San Fran­
cisco C ounty, 2 each in Alameda and Fresno Counties, 1 each in M onterey,
Sacramento, San Joaquin, and San Mateo Counties, and 3 in Santa Clara
County. It has the necessary approvals fo r one additional office in Santa Clara
County. In Southern California, California T o kyo operates nine offices in Los
Angeles C ounty, tw o offices in Orange C ounty, and one office in San Diego
County.
FNB San Diego has its 74 offices in the 3 southernmost coastal counties o f
Southern California: 41 offices including its main office in San Diego C ounty,
19 offices in Orange County, and 14 offices in Los Angeles C ounty. FNB San
Diego also has approval to establish five additional branches, all in San Diego
County.



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79

Effects o f the proposed transaction w ould be most direct and immediate in
the three counties w ith in which both banks have offices (each of which consti­
tutes a separate SMSA):
Los Angeles County. Eighty commercial banks, having over 1,000 offices
serve this major m etropolitan area o f more than 7,000,000 people. Bank
of America National Trust and Savings Association and Security Pacific
National Bank dominate the local banking structure, w ith more than 520
offices and 53.3 percent o f local IPC deposits between them . Crocker
National Bank, United California Bank, Lloyds Bank California, and
Wells Fargo Bank, National Association, all have significant branch sys­
tems in the county, while United California Bank (12.1 percent), Union
Bank (9.5 percent), and Crocker National Bank (6.8 percent) hold the
three next largest shares o f local IPC deposits after Bank o f America
National Trust and Savings Association and Security Pacific National
Bank. By contrast, the 23 offices o f the resultant bank w ould constitute
slightly over 2 percent o f all commercial bank offices in the county, and
its $360 m illion in local IPC deposits w ould constitute only 1.7 percent
of the county's to ta l. Only 4 o f these 23 offices are w ith in 5 miles o f
each other.
Orange County. T h irty-n in e commercial banks, having almost 300 o ff­
ices, serve this rapidly growing market o f well over 1,600,000 persons.
Bank o f America National Trust and Savings Association controls 75 o f
those offices and 29.8 percent of the county's commercial bank IPC
deposits. Security Pacific National Bank follow s w ith 54 offices and a
local market share equal to 19 percent of the county's IPC deposits.
United California Bank, Crocker National Bank, Wei Is Fargo Bank,
National Association, and Lloyds Bank California among them have
about 80 offices, while the th ird , fo u rth , and fifth largest shares of local
commercial bank IPC deposits are held by United C alifornia Bank (12.5
percent), Crocker National Bank (6.1 percent), and Union Bank (5.5
percent). By contrast, the resultant bank would have 21 o f such offices
and 4.7 percent o f such deposits. California T o k y o presently has only
tw o offices in the county w ith about $16 m illion in IPC deposits. One o f
these offices is about a half mile away from an office of FNB San Diego.
San Diego County. FNB San Diego presently has 41 offices and 19.4
percent o f the county's total IPC deposits, ranking th ird in number o f
offices and second in local IPC deposits. Bank o f America National T rust
and Savings Association ranks firs t in both respects (68 offices, local
share of IPC deposits 29.6 percent), while Security Pacific National Bank
is second in number o f offices (44) and th ird in local share of IPC
deposits (17.3 percent). San Diego Trust and Savings Bank is the fo u rth
ranking bank in both respects (22 offices, 9.6 percent of local IPC
deposits) while Crocker National Bank, by virtue of its 1973 acquisition
of the offices and deposits of the defunct United States National Bank, is
fifth (14 offices and 6.7 percent in local IPC deposits). California T okyo
has only one recently established de novo office in the county w ith
approxim ately $4 m illion in local IPC deposits. Twenty-one banks other
than those mentioned also compete in the San Diego market.
In each market, some slight existing com petition between California T o kyo
and FNB San Diego would probably be eliminated by their proposed merger,



80

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

but this is considered de m inim is in San Diego and Orange Counties because o f
C alifornia T okyo 's lim ited number of offices and small volume of local IPC
deposits. While more offices o f both banks are involved in Los Angeles C ounty,
the market is significantly larger and the respective market shares o f both
banks very small. C alifornia T o kyo , moreover, has stressed in the past w hole­
sale banking w hile FNB San Diego has stressed retail banking and consumer
credit.
The merger would clearly eliminate increased co m petition between the tw o
banks in the future, even if FNB San Diego is considered tem porarily disabled
by virtue of its financial and managerial shortcomings. California T okyo, over
the past 10 years, has been expanding de novo aggressively and successfully in
many parts o f California, including these three counties, and w ith its financial
and managerial resources, it is fu lly capable of continuing such expansion. In
addition, it is moving more obviously into retail and consumer banking than
heretofore. Nonetheless, the elim ination of this potential com petition is not
viewed as a m atter of particularly serious com petitive consequence. Eight
banks w ith larger shares o f the local market than the resultant bank w ould
continue to compete in Los Angeles C ounty, and the market has numerous
smaller, aggressive com petitors. Orange C ounty has several large, fast-growing
local banks, while San Diego C ounty has similar prospects of future com peti­
tion as its economic growth and population increases. The Bank of C alifornia,
National Association, one of the State's b illio n dollar branch banks, is about
the same size as California T o kyo and FNB San Diego combined and yet has a
minimal number o f offices and few IPC deposits in these three Southern Cali­
fornia counties. Wells Fargo Bank, National Association, the State's th ird
largest bank, also has disproportionately low representation in the three coun­
ties, and must be considered a prime source of future com petition. Lloyds
Bank California, another of California's b illio n dollar branch banks has no
office in San Diego C ounty, and United California Banks is relatively under­
represented. The loss of potential com petition between California T o k y o and
FNB San Diego is thus viewed as u n like ly to have any significant e ffect on
future com petition or fu tu re bank structure in any of the three counties.
Statewide, the resultant bank w ould rank eighth in domestic deposit size,
holding about 2 percent o f C alifornia's total commercial bank IPC deposits.
The six largest California banks range in size from Bank o f America's $22
billion in such deposits (36.6 percent o f the total) to Union Bank's $2.5 b illio n
(4.2 percent of the to ta l).
Under the circumstances, the Board o f Directors has concluded that the
proposed transaction w ould not, in any section o f the co untry, substantially
lessen com petition, tend to create a m onopoly, or in any other manner be in
restraint of trade.
Financial and Managerial Resources; Future Prospects. California T o kyo has
satisfactory financial and managerial resources; those of FNB San Diego in
recent years have been less than satisfactory, w ith significant chargeoffs in the
commercial loan p o rtfo lio , inexperienced and frequently changed management,
low earnings, and a deteriorating capital base. Financial and managerial re­
sources o f the resultant bank w ould be acceptable and its future prospects
appear favorable. C alifornia T o kyo , as an integral part o f this transaction,
intends to increase the capital funds o f the resultant bank by more than $70
m illion.



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81

Convenience and Needs o f the C om m unity to be Served. Consummation o f
the proposed transaction should benefit customers of both banks by the signifi­
cantly higher lending lim it th a t w ould be available to them in the resultant
bank. California T okyo's capable and aggressive management should m ount
significantly stronger com petition w ith the State's major branch banks in three
of the State's most rapidly growing counties. California T o kyo 's expertise in
commercial lending and international banking w ould be available to customers
of FNB San Diego and the fu ll services of the latter's well-established trust
department would become available to customers o f California T o kyo . To the
extent comparable services are offered by competing banks in the relevant
markets, the resultant bank w ould become an additional, conveniently avail­
able alternative fo r such services.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.

Farmers State Bank
Marion, Iowa

R eso u rce s
(in
th o u sa n d s
o f d o llars)

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

47,616

3

T o be
operated

3

to merge wi th

Marlinn, Inc.
Marion
Summary report by A tto rn e y General, August 22, 1975
Farmers State Bank now owns all o f the outstanding common stock o f
Marlinn, Inc., a corporation whose powers are lim ited to the holding of title to
and managing real estate used in the transaction o f business by the bank. The
proposed merger is essentially a corporate reorganization and w ould have no
effect on com petition.
Basis fo r C orporation approval, August 28, 1975
Farmers State Bank, Marion, Iowa, a State nonmember insured bank w ith
total resources o f $47,616,000, has applied, pursuant to section 18(c) and
other provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's
prior consent to merge w ith Marlinn, Inc., Marion, Iowa, a noninsured, non­
banking e n tity, under the charter and title o f Farmers State Bank. The result­
ing bank would operate the three banking offices o f Farmers State Bank in
their present locations.
Com petition. The proposed merger w ould be a m inor internal reorganiza­
tion designed to return direct ownership of Farmers State Bank's banking
premises to the bank from its w h o lly owned subsidiary, M arlinn, Inc. As such,
it w ould not affect com petition.
The Board o f Directors is o f the opinion th a t this merger w ould not, in any
section o f the cou n try, substantially lessen com petition, tend to create a
monopoly, or in any other manner be in restraint o f trade.



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

Financial and Managerial Resources; F uture Prospects. The financial and
managerial resources and future prospects of Farmers State Bank are satis­
factory.
Convenience and Needs o f the C om m unity to be Served. The proposed
transaction w ould be an internal reorganization and would not a ffect the con­
venience and needs o f the com m unity.
Based on the foregoing in fo rm a tio n , the Board of Directors has concluded
that approval o f the application is warranted.

Commonwealth Bank and T rust Company
Muncy, Pennsylvania

B a n k in g O ffic e s

R e so u rce s
(in
th o u sa n d s
o f d o llars)

In
o p e ra tio n

120,642

15

12,057

2

T o be
operated

17

to merge with

The First National Bank of Coudersport
Coudersport

Summary report by A tto rn e y General, June 19, 1975
The com petitive effects o f this proposed transaction w ill be fe lt largely in
Potter C ounty, where A p p lica n t operates tw o branches and Bank maintains its
tw o offices. A pp lica n t and Bank, each w ith about 27 percent o f total Potter
C ounty deposits, are the tw o largest of the fo u r banks w ith offices in that
county. While this proposed merger w ill undoubtedly eliminate some existing
com petition between the parties, it is d o u b tfu l th a t their respective market
shares in Potter C ounty accurately reflect the extent to which they actually
compete. A pplicant's tw o Potter C ounty offices are located about 20 miles
north (on the New York-Pennsylvania border) and 20 miles east (on the TiogaPotter County line), respectively, o f Bank's Coudersport headquarters and an
even greater distance from Bank's A ustin branch.
We conclude th a t this proposed merger, which w ill elim inate some existing
com petition and the potential fo r increased future com petition between the
parties, may have some adverse com petitive effects in the Potter C ounty area.
Basis fo r C orporation approval, August 28, 1975
Commonwealth Bank and Trust Company, Muncy, Pennsylvania ("C o m ­
m onw ealth"), a State nonmember insured bank w ith total resources o f
$120,642,000 and total IPC deposits o f $92,897,000, has applied, pursuant to
section 18(c) and other provisions of the Federal Deposit Insurance A ct, fo r
the C orporation's prior w ritte n consent to merge w ith The First National Bank
of Coudersport, Coudersport, Pennsylvania ("F N B C oudersport"), w ith total
resources o f $12,057,000 and total IPC deposits of $9,690,000. The banks
would merge under the charter and title o f Commonwealth and the 2 offices o f
FNB Coudersport w ould be established as branches o f the resultant bank,
increasing the number o f its authorized offices to 18.



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83

C om petition. Commonwealth operates 15 offices in 5 of the 10 northern
Pennsylvania counties in which it may merge or branch under Pennsylvania
law. Its main office and fo u r branches are located in Lycom ing C ounty, five
branches are in Tioga C ounty, tw o branches are in Bradford C ounty, tw o are in
Potter C ounty, and one is in C linton C ounty. Commonwealth has approval fo r
one additional branch in Lycoming County.
FNB Coudersport has its main office in Coudersport (population 2,831) and
its only branch in A ustin (population 626), 15 road-miles south o f the main
office, both in west-central Potter C ounty. Potter C ounty, sparsely populated,
largely forested, and o f sub-mountainous terrain, derives much o f its income
from dairy and potato farm ing, tim ber operations, summer tourism , and h u n t­
ing and fishing facilities. The county's 1973 median household buying level was
15.5 percent below th a t of the State as a whole. The Coudersport area depends
in large part on operations of 3 local enterprises, w hich together em ploy some
750 people. Austin is a rural com m unity whose population increases fo u rfo ld
w ith the annual in flu x o f sportsmen and vacationers. FNB Coudersport's
prim ary trade area comprises all comm unities w ith in some 15 road-miles o f
Coudersport and A ustin. It shares this market w ith another Coudersport-based
bank, Citizens Trust Company, the tw o banks holding respective shares of 46.7
percent and 53.3 percent o f the area's IPC deposits, aggregating $20,753,000.
One o f Com m onwealth's tw o Potter C ounty offices is 19 road-miles n o rth ­
west o f Coudersport in Shinglehouse, in the extreme northwestern corner o f
the county, close to the New Y o rk State border. The other is in Galeton, in
eastern Potter C ounty adjoining Tioga C ounty, some 23 road-miles east o f
Coudersport. Shinglehouse (population 1,320) is a rural residential co m m u n ity
and many o f its residents are employed in or around Olean, New Y o rk. Galeton
(population 1,552) is the site of an electronics assembly plant and is the
trading center fo r camping and hunting areas in its vicin ity. Neither location
would re p re s e n t a likely or convenient alternative fo r banking services to
Coudersport residents or businessmen, since they have an alternative close at
hand in the other commercial bank in Coudersport. The application confirm s
that neither Commonwealth nor FNB Coudersport draws a substantial am ount
of business from the areas served by the other. It thus appears th a t no signifi­
cant existing com petition between the banks w ould be elim inated by their
proposed merger.
Commonwealth may legally enter the Coudersport area de novo but w ould
find such expansion unattractive in view of the area's sparse population, sub­
stantially below-average buying levels, and lack of prospects fo r significant
economic grow th in the foreseeable future. FNB Coudersport, fo r its part, has
lim ited financial and managerial resources and would not be apt to a tte m p t de
novo expansion at the present time. The proposed merger, accordingly, w ould
not elim inate a significant potential fo r increased com petition between the tw o
banks in the future through de novo branching.
In the 10-county region w ith in which Commonwealth may merge or branch
de novo, 56 commercial banks today operate more than 150 offices. The
largest of these banks is N orthern Central Bank and T rust Company, W illiam s­
port, w ith 10.7 percent o f the IPC deposits held on June 30, 1974, by all
commercial bank offices in the region. Commonwealth ranks second w ith 7.0
percent o f such deposits. The resultant bank w ould have 7.8 percent of such
deposits. Banking resources in this region are relatively unconcentrated and a



84

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

sizable number of commercial banks constitute reasonably convenient alterna­
tives fo r banking service therein. Commonwealth's acquisition o f FNB Coudersport's 0.8 percent share of the region's commercial bank IPC deposits w ould be
u nlikely to affect future com petition in this relevant area.
Based on the foregoing, the Board o f Directors has concluded th a t the
proposed merger w ould not, in any section o f the country, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. Financial and man­
agerial resources of both banks are adequate and their fu tu re prospects, as
separate entities, appear favorable. The resultant bank w ould have acceptable
financial and managerial resources and its future prospects appear favorable.
Convenience and Needs o f the C om m unity to be Served. The proposed
merger w ould have no significant im pact in the present trade area of Com m on­
wealth. In west-central Potter C ounty, an aggressive management, operating
w ith a lending lim it o f $700,000, w ould offer at FNB Coudersport's tw o
locations the sophisticated credit services of one of the region's major com m er­
cial banks. Passbook savings accounts would be paid interest at an annual rate
0.5 percent higher than heretofore. Trust services, data processing facilities,
and a broader variety o f deposit options would be available at FNB Couders­
port's form er offices. To the extent these services are presently available at the
competing local bank, an alternative fo r such services w ould be provided in the
relevant local market.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.

R e so u rce s
(in
th o u sa n d s
o f d o lla rs)

Citizens Bank
New Castle, Kentucky
(change title to United Citizens Bank &
Trust Company)

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

9,510

2

11,261

2

T o be
operated

4

to consolidate with

United Farmers Bank
Campbellsburg

Summary report by A tto rn e y General, July 31, 1975
The main offices of the merging banks are about 8 miles apart and their
nearest offices are separated by a distance of about 4 miles. Thus, the proposed
transaction w ill elim inate existing com petition between the parties in Henry
County.
Five banks presently operate seven banking offices in Henry C ounty.
Citizens Bank presently ranks th ird among the five Henry C ounty banks and
United Bank ranks fifth . However, the resulting bank w ill, by a substantial



B A N K A B S O R P T IO N S A P P R O V E D B Y T H E C O R P O R A T I O N

85

margin, be the largest commercial bank in Henry C ounty. Thus, it appears th a t
the proposed transaction w ill eliminate existing com petition and significantly
increase concentration in commercial banking in Henry County. Although
some additional com petition may be provided by banks in the Louisville area,
the proposed merger would have adverse com petitive effects.
Basis fo r Corporation approval, September 2, 1975
Citizens Bank, New Castle, Kentucky ("C itize n s"), a State nonmember in ­
sured bank having to ta l resources of $9,510,000 and total IPC deposits o f
$7,803,000, has applied, pursuant to section 18(c) and other provisions o f the
Federal Deposit Insurance A ct, fo r the C orporation's prior consent to consoli­
date w ith United Farmers Bank ("U n ite d "), Campbellsburg, Kentucky, w ith
total resources of $11,261,000 and total IPC deposits o f $8,921,000. The
banks w ould consolidate under a new State charter w ith the title "U n ite d
Citizens Bank & T rust C om pany." As an incident to the transaction, the tw o
offices of United w ould become branches of the resultant bank.
C om petition. Citizens operates its main office in New Castle, K entucky
(population 755), the county seat o f Henry C ounty (population 10,910), situ­
ated in the approximate center o f the county. It has one branch office located
in Port Royal, 10 miles northeast of New Castle, and one approved but un ­
opened branch in Pendleton, 5 miles west o f New Castle. Each of these branch
comm unities is also very small. Citizens is the smallest commercial bank in
Henry County.
United's main office is located in Campbellsburg, Kentucky (population
479), on the northern fringe o f Henry C ounty approxim ately 8 miles north o f
New Castle. It operates one branch in Turners Station, located about 3 miles
northeast o f Campbellsburg and about 4 miles west of Citizens' Port Royal
branch. United is the th ird largest bank in Henry County.
Henry C ounty is predom inantly agricultural w ith tobacco and livestock the
principal products. Its population is stagnant, and the 1973 median household
buying level at $6,528 was 17.4 percent below the statewide figure o f $7,899.
Interstate 71 traverses Henry C ounty and has interchanges near both New
Castle and Campbellsburg, making both com m unities readily accessible to the
cities o f LaGrange, Bedford, and C arrollton, none of which is farther than 15
road-miles from at least one office of both banks. Thus, the relevant market
comprises Henry C ounty together w ith eastern Oldham C ounty, southeastern
T rim ble C ounty, and the central th ird of Carroll C ounty. Ten commercial
banks presently maintain a total o f 13 offices w ith in this market, serving a
population estimated at 24,020. Of the m arket's $72.8 m illio n in commercial
bank IPC deposits on June 30, 1974, United had the fo u rth largest share, 11.7
percent, and Citizens, the sixth largest share, 9.4 percent. The resultant bank
w ould hold the largest share o f such deposits in the defined m arket (21.1
percent), while seven other banks w ould hold market shares ranging from 17.2
percent to 7.1 percent.
The merging banks have main offices about 8 miles apart, while their nearest
offices are only 4 miles apart. Thus, Citizens and United compete in the same
general banking market and some existing com petition between them w ould be
eliminated. However, that com petition is somewhat m inim ized by the strong
com m unity orientation of both banks. In addition, the modest population o f
the area diminishes the com petitive significance of differences in m arket shares



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

86

and the increase in banking concentration which would result from the pro­
posed consolidation. Following the consolidation, it appears th a t an adequate
number o f banking choices w ould remain available w ith in the relevant market
for local businessmen and residents.
The potential fo r increased com petition between the banks in the fu tu re is
also lim ited. Kentucky law allows countyw ide branching b u t prohibits de novo
branching w ith in the incorporated lim its of a com m unity th a t contains the
main office of an existing bank unless the branching bank also has its main
office in tha t com m unity. Therefore, in view o f the small size of the com m un­
ities in the relevant market which remain available fo r de novo entry, such
branching by either bank, and increased com petition between them in the
future through such branching, appears remote.
Under the circumstances, the Board o f Directors is o f the opinion th a t the
proposed transaction w ould not, in any section o f the country, substantially
lessen com petition, tend to create a m onopoly, or in any manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. The resultant bank
would have adequate financial and managerial resources and its fu tu re pros­
pects are considered favorable.
Convenience and Needs o f the Communities to be Served. An increased
lending lim it and a greater supply of lendable funds should benefit residents
and businessmen w ith in the relevant market. In addition, the resultant bank
proposes to offer trust services, a service presently not offered by either o f the
proponents.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.

Grenada Bank
Grenada, Mississippi

B a n k in g O ffic e s

R e so u rce s
(in
th o u sa n d s
o f d o lla rs)

In
o p e ra tio n

192,268

25

52,233

6

T o be
operated

31

to merge with

Coahoma National Bank
Clarksdale

Summary report by A tto rn e y General, August 22, 1975
Coahoma Bank is the second largest o f three banks in Coahoma C ounty,
holding 36.5 percent o f total county bank deposits. Grenada Bank's closest
office, in Summer, is 19 road-miles southeast o f Clarksdale and its Shelby
office is 22 miles southwest of Clarksdale. The application indicates th a t the
merging banks draw little business from each other's service areas. Thus, it does
not appear that the proposed transaction would eliminate substantial existing
com petition. Nor does it appear th a t the proposed merger would eliminate
substantial potential com petition, in view of the presently lim ited grow th o u t­
look fo r areas served by Coahoma Bank.



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87

We conclude th a t the proposed merger w ould not have a substantially ad­
verse effect on com petition.
Basis fo r C orporation approval, September 2, 1975
Grenada Bank, Grenada, Mississippi, a State nonmember insured bank w ith
total assets of $192,268,000 and total IPC deposits of $153,799,000, has
applied, pursuant to section 18(c) and other provisions o f the Federal Deposit
Insurance A ct, fo r the C orporation's p rio r consent to merge under its charter
and title w ith Coahoma National Bank, Clarksdale, Mississippi ("C o a h o m a "),
w ith total resources of $52,233,000 and total IPC deposits o f $39,253,000.
Incident to the merger, the 6 offices o f Coahoma w ould be established as
branches of the resultant bank, increasing to 31 the total number of its offices.
Com petition. Grenada Bank maintains offices in 10 counties in the northern
half o f Mississippi, namely Grenada, Bolivar, Calhoun, Chickasaw, Choctaw,
Leflore, S unflower, Tallahatchie, Webster, and Winston. This region is p ri­
marily agricultural although light industry has been assuming greater economic
importance during the past decade. The 1970 population o f these 10 counties
was 236,080, an overall 9.5 percent decrease since 1960. Median household
buying levels thro u g h o u t the region, w ith the exception o f Grenada C ounty,
are substantially below the State median, w hich itself is the second-lowest in
the nation.
Coahoma has its main office and fo u r branches in Coahoma C ounty (1970
population 40,447, down 12.5 percent since 1960). Coahoma C ounty is on the
western border o f Mississippi adjacent to the State of Arkansas, and about
midway between Greenville and Memphis. Its economy is predom inantly agri­
cultural w ith some light manufacturing located in the city o f Clarksdale (popu­
lation 21,673) and vicin ity. The county's median household buying level
($4,590) is 33.7 percent below the statewide level ($6,928). Coahoma also has
one recently established office in South Haven, DeSoto C ounty, some 78 miles
north of Clarksdale, d ire ctly adjacent to the c ity lim its o f Memphis, Tennessee.
DeSoto C ounty (1970 population 35,885) is a rapidly growing residential
county w hich has been participating in the spread of Memphis southward. Its
income levels are substantially higher than those in Coahoma C ounty, but still
below those of the State as a whole.
Effects o f the proposed merger w ould be most immediate and direct in tw o
areas: one w ith in approxim ately 15 miles o f Clarksdale, and the other being
approximated by DeSoto C ounty. In the form er market, 4 commercial banks
w ith 17 offices, serving a population estimated at 46,200, held area IPC de­
posits of $103 m illio n in mid-1974. Coahoma had 34.3 percent o f such de­
posits. Bank of Clarksdale held 47.8 percent; First National Bank o f Clarksdale,
17.2 percent; and The Bank of Bolivar C ounty held the remainder o f these
deposits. Grenada Bank's nearest offices are 19 and 20 miles away, and w hile
there is some overlapping o f local markets, the volume o f deposits held by
these Grenada Bank offices indicates that no significant existing com petition
between Grenada Bank and Coahoma w ould be eliminated by the proposed
merger. In DeSoto C ounty, 7 commercial banks have 15 offices, w ith Coahoma
having the fifth largest share (5.2 percent) o f local IPC deposits. Grenada
Bank's nearest office is 75 miles away, and it does not compete in the DeSoto
market.



88

F E D E R A L D E PO S IT I N S U R A N C E C O R P O R A T I O N

Each o f the merging banks, under Mississippi law, may enter de novo the
prim ary trade area o f the other, bu t there appears to be little likelihood th a t
com petition between them w ill increase through such expansion in the foresee­
able future. For Grenada Bank, the Clarksdale-Coahoma C ounty area offers
little attraction fo r de novo entry. The city of Clarksdale has a total of 7
commercial bank offices serving 21,673 people; the population of Coahoma
C ounty decreased significantly during the 1960s, and the county's median
buying level is one o f the lowest in Mississippi. For its part,. Coahoma, having
established only one branch since 1967, w ould be u n like ly to favor de novo
entry into Grenada Bank areas in which it w ould encounter such strong compe­
titio n .
In its maximum potential market, which under State law is th a t region in
Mississippi lying w ith in a radius of 100 miles o f its main office, Grenada Bank
controls 5.8 percent of the IPC deposits held on June 30, 1974, by all area
offices o f the 108 commercial banks now represented in this market. The
proposed merger w ould increase this share to 7.3 percent of such deposits.
From the foregoing data it appears th a t the proposed merger w ould have no
significant effect on com petition in any relevant area; and thus, the Board o f
Directors is of the opinion th a t the proposed merger would not, in any section
of the coun try, substantially lessen com petition, tend to create a m onopoly, or
in any other manner be in restraint o f trade.
Financial and Managerial Resources; F uture Prospects. Both Grenada Bank
and Coahoma have adequate financial and managerial resources, as w ould the
resultant bank.
Convenience and Needs o f the C om m unity to be Served. The merger would
provide businessmen, farmers, and residents of Coahoma's trade area w ith the
services o f one of the State's m ajor banks. Greater lendable funds and a lending
lim it increased six-fold over that o f Coahoma should stimulate com petition
among the banks in Clarksdale, and Grenada Bank w ould also represent a
strong new com petitive force in DeSoto C ounty to the north.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.

R e so u rce s
(in
th o u sa n d s
o f d o llars)

Bank o f Manalapan
Manalapan Township, New Jersey
(change title to Brunswick Bank
and Trust Company)

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

8,967

1

27,795

2

T o be
operated

3

to merge with

New Brunswick Trust Company
New Brunswick

Summary report by A tto rn e y General, March 18, 1975
We have reviewed this proposed transaction and conclude th a t it would not
have a substantial com petitive impact.



B A N K A B S O R P T IO N S A P P R O V E D B Y T H E C O R P O R A T I O N

89

Basis fo r C orporation approval, September 16, 1975
Bank o f Manalapan, Manalapan Township, M onm outh C ounty, New Jersey
("Manalapan B ank"), a State nonmember insured bank w ith to ta l resources o f
$8,967,000 and total IPC deposits o f $7,194,000, has applied, pursuant to
section 18(c) and other provisions of the Federal Deposit Insurance A c t, fo r
the C orporation's p rio r consent to merge w ith New Brunswick Trust Company,
New Brunswick, New Jersey ("T ru s t C om pany"), w ith total resources o f
$27,795,000 and IPC deposits o f $20,352,000. The banks would merge under
the charter of Manalapan Bank w ith the title "B runsw ick Bank and T rust
C om pany," and the tw o existing offices and one approved but unopened office
of T rust Company w ould be operated as branches of the resultant bank. T rust
Company has a small tru st departm ent and Manalapan Bank has also applied
fo r consent to exercise tru st powers.
C om petition. Manalapan Bank operates its main office and an auxiliary
drive-in fa c ility in a shopping center on Route 9 in Manalapan Township
(population 14,049). It serves an area o f some 60 square miles in western
M onm outh C ounty w ith an estimated population of 42,000. As a result of a
change in its basic economy from rural to residential and commercial, this
section recorded rapid growth between 1960 and 1970. The median household
buying level fo r M onm outh C ounty was $14,892 in 1974, slightly above the
State median o f $14,680.
Trust Company operates its main office and one branch in New Brunswick
(population 41,885) and has approval to establish a branch in South Brunswick
Township, southwest o f New Brunswick. The area th a t Trust Company pres­
ently serves includes the c ity o f New Brunswick and the northern part o f N orth
Brunswick Township. The median household buying level fo r New Brunswick
was $11,534 in 1974, 21 percent below the State median.
The closest offices o f the tw o banks are 13 miles apart and there are several
intervening banking offices. Neither bank originates any appreciable volume o f
business from the local area served by the other. Furtherm ore, each bank is the
smallest in stitu tio n in its local market. The resultant bank w ould continue to
be the smallest in the western M onm outh C ounty area served by Manalapan
Bank and the second smallest in the New Brunswick area. In the western
M onm outh C ounty market, where the im pact o f the proposed merger w ould be
most immediate and direct, 16 offices o f 7 commercial banks operate. As o f
June 30, 1974, Manalapan Bank held 5.4 percent o f area IPC deposits, the
th ird largest share. The tw o larger banks, Colonial First National Bank and The
Central Jersey Bank and Trust Company, dominated the m arket w ith a total o f
nine offices and 85.1 percent o f area IPC deposits. The remaining fo u r com ­
petitors, however, were all subsidiaries o f m ultibank holding companies, each
of which had tota l IPC deposits in excess of $1 b illion. Given these facts, the
proposed merger w ould eliminate no substantial existing com petition between
Manalapan Bank and T rust Company, nor w ould it affect in any perceptible
way the commercial bank structure in the tw o banking markets which the
resultant bank would serve.
New Jersey law allows commercial banks to branch statewide, subject to
certain home office protection restrictions. Manalapan Bank, due to lim ited
resources and a lack of branching experience, is not likely to expand in to the
Brunswick area through de novo branching in the foreseeable future. It is
equally unlikely that T rust Company w ould branch de novo in to Manalapan



90

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

Bank's market where extensive branch networks o f several o f the State's largest
banks are already established and the population per commercial bank o ffice in
the area is already low (one fo r each 2,625 persons). It is thus d o u b tfu l that
the proposed merger w ould eliminate any significant potential fo r increased
com petition between the tw o banks in the foreseeable fu tu re .* Moreover,
several larger banks and holding company affiliates must be viewed as more
likely to branch de novo should attractive opportunities arise in either market.
Neither o f the participating banks is affiliated w ith a holding company,
while many of the banks w ith w hich they compete are subsidiaries o f some o f
the largest m ultibank holding companies in New Jersey. The proposed merger
should improve the com petitive stance of the resultant bank vis-a-vis these large
commercial banks.
W ithin the State, the resultant bank w ould hold less than 0.2 percent o f all
commercial bank IPC deposits.
Based on the foregoing, the Board o f Directors has concluded th a t the
proposed merger w ould not, in any section o f the country, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. Both Manalapan
Bank and Trust Company have adequate financial and managerial resources and
favorable prospects fo r the fu tu re , as w ould the resultant bank.
Convenience and Needs o f the C om m unity to be Served. The proposed
merger w ould extend trust services to Manalapan Bank's customers and w ould
increase lending lim its to all customers o f the resultant bank. I t w ould also
provide businesses and residents in western M onm outh C ounty w ith an addi­
tional source fo r many commercial bank services, thereby strengthening com ­
petition w ith the larger statewide banks in the market.
For these reasons, the Board of Directors has concluded th a t both Man­
alapan Bank's application to merge w ith Trust Company and its application to
exercise tru st powers upon consumm ation o f the merger should be approved.

First V erm ont Bank and Trust Company
Brattleboro, V erm ont

B a n k in g O ffic e s

Re so u rce s
(in
th o u sa n d s
o f d o lla rs)

In
o p e ra tio n

T o be
operated

168,113

14

15

11,011

1

to merge with

Bank o f W aterbury
W aterbury

* F o r purposes o f assessing th e c o m p e titiv e im p a c t o f th is proposal u n d e r th e B ank Merger
A c t, th e B oard o f D ire c to rs , in accordance w ith past pra ctice , has ignored the a c q u is itio n
o f sto ck c o n tro l o f M analapan B ank by th e c o n tro l o w n e r o f T ru s t C om p any in S eptem ­
ber 1973.




B A N K A B S O R P T IO N S A P P R O V E D B Y T H E C O R P O R A T I O N

91

Summary report by A tto rn e y General, July 18, 1975
First V erm ont's office in Barre is located about 18 miles southeast o f Waterbury. Several large banks operate offices in intervening Montpelier. While the
application does not provide inform ation sufficient to fu lly evaluate the extent
to which First V erm ont draws deposits and loans from W aterbury Bank's
service area, it appears u n like ly th a t the form er is a substantial co m p e tito r fo r
business in the W aterbury area. Thus, we believe th a t the proposed merger
would eliminate no more than a lim ited am ount o f existing com petition be­
tween the tw o institutions.
F irst V erm ont possesses the resources to establish de novo branches in the
area served by W aterbury Bank. While the proposed merger could thus e lim i­
nate some potential com petition, we do not believe th a t its overall com petitive
effect w ould be significantly adverse.
Basis fo r C orporation approval, September 16, 1975
First V erm ont Bank and Trust Company, Brattleboro, V erm ont ("F irs t
V e rm o n t"), a State nonmember insured bank (total resources $168,113,000;
total IPC deposits $135,972,000), has applied, pursuant to section 18(c) and
other provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's
prior consent to merge w ith Bank of Waterbury, W aterbury, V erm ont (total
resources $11,011,000; total IPC deposits $8,519,000). The banks w ould
merge under the charter and title o f First V erm ont and, as an incident to the
merger, the 3 approved offices o f Bank o f W aterbury w ould be established as
branches of the resultant bank, which would then have a total of 18 approved
offices.
C om petition. First V erm ont operates 14 offices: its main office and 2
branches in Windham C ounty, 3 branches in Bennington C ounty, 5 in Rutland
C ounty, 2 in Washington C ounty, and 1 in Windsor C ounty. First V erm ont has
supervisory approval fo r one additional office in Windham C ounty. This bank
is the th ird largest o f V erm ont's 33 commercial banks, w ith 12.3 percent o f
their I PC deposits.
Bank o f W aterbury has its main office in W aterbury, Washington C ounty
(1970 population 47,659, up 11.2 percent since 1960), and maintains a lim ited
service fa c ility in Stowe, in Lamoille C ounty (1970 population 13,309, up 20.7
percent since 1960), 10 miles north of its main office. It has supervisory
approvals fo r a branch to be established w ith in W aterbury. The prim ary service
area o f Bank o f W aterbury comprises all comm unities w ith in a radius o f 12
road-miles o f W aterbury, including M ontpelier (population 8,609), the State's
capital. The population of this local market increased some 4.7 percent during
the 1960s to an estimated 21,300. Tourism and dairy farming are economic
factors in this market; additionally, Stowe is a leading ski resort and a yearround recreation area and M ontpelier is the home o f a major life insurance
company. Median buying levels o f both Washington C ounty ($9,752) and
Lamoille C ounty ($9,378) in 1974 were somewhat below those o f the State as
a w hole ($10,160). Bank of W aterbury has the fo u rth largest share (9.9 per­
cent) o f the aggregate IPC deposits held by area offices of the six commercial
banks represented in its local market. T w o Burlington-based commercial banks
(largest and second largest in the State) and a bank headquartered in B rattle­
boro (fo u rth largest in the State) hold the three largest shares o f such deposits.



92

F E D E R A L D E POS IT I N S U R A N C E C O R P O R A T I O N

First Verm ont's closest office is in Barre, some 19 road-miles southeast o f
W aterbury. The c ity of M ontpelier lies between W aterbury and Barre, and the
commercial bank structure of this c ity minimizes existing com petition between
First V erm ont and Bank o f W aterbury. It is u nlikely th a t any significant exist­
ing com petition between the tw o banks w ould be eliminated by th e ir proposed
merger.
Verm ont law permits statewide de novo merging and branching. Bank o f
W aterbury, through the years, has been under conservative management. Its
recently approved W aterbury branch w ould be the firs t to be established since
the Stowe fa c ility was opened in 1931. Presently the bank has neither man­
agerial resources, experience, nor inclination to establish de novo branches in
areas in which First V erm ont is competing.
First V erm ont, on the other hand, has opened several de novo offices in
recent years and has the resources, the management, and the inclination to
establish additional branches. There is little likelihood, however, th a t it w ould
find the m arket served by Bank of W aterbury attractive fo r de novo e n try — a
market whose population grow th substantially lags th a t o f the State, whose
buying levels are below statewide averages, and in w hich each commercial bank
office presently serves an average o f 2,360 inhabitants. It thus appears u n like ly
that the proposed merger w ould eliminate any significant potential fo r in­
creased com petition between the tw o banks in the future as a result of th e ir de
novo branching. Moreover, w ith other large banks serving northern V erm ont
and located in M ontpelier and Barre, any future de novo branching o p p o rtu n ­
ities in or around W aterbury th a t appear feasible should attract other banks
capable o f competing w ith First Verm ont.
A fte r the merger, First V erm ont w ould continue to rank th ird largest o f all
commercial banks in V erm ont, w ith 13.1 percent o f th e ir aggregate IPC de­
posits. !n this relatively unconcentrated State, the firs t and second ranking
commercial banks, both headquartered in B urlington, hold 16.6 percent and
13.3 percent of such deposits, respectively.
Based on the foregoing, the Board o f Directors has concluded that the
proposed merger w ould not, in any section o f the co untry, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. Both First V erm ont
and Bank o f W aterbury have satisfactory financial and managerial resources.
Future prospects o f the resultant bank w ould be satisfactory.
Convenience and Needs o f the C om m unity to be Served. In the tow n o f
Waterbury and its environs, the-merger w ould make available to the public a
greater supply of lendable funds, a higher lending lim it, data processing fa c il­
ities, and broadened trust services. In addition, the proposed merger w ould
encourage greater com petition among the large branch banks serving northern
V erm ont, thus b e n e fitin g residents and businesses in Washington, Lamoille,
and other nearby counties.
In view o f the above, the Board o f Directors has concluded that approval o f
the application is warranted.



93

B A N K A B S O R P T IO N S A P P R O V E D B Y T H E C O R P O R A T I O N

R e so u rce s
(in
th o u sa n d s
o f d o lla rs)

First Financial Bank (in organization)
Nashua, New Hampshire
(change title to Colonial Trust Company)

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

T o be
operated

2

800

to merge with

Colonial Trust Company
Nashua

11,577

2

Summary report by A tto rn e y General, May 15, 1975
The proposed merger is part o f a plan through which Colonial T rust C om ­
pany would become a subsidiary o f First Financial Group o f New Hampshire,
Inc., a bank holding company. The instant merger, however, w ould merely
combine an existing bank w ith a nonoperating in s titu tio n ; as such, and w ith o u t
regard to the acquisition of the surviving bank by First Financial G roup of New
Hampshire, Inc., it w ould have no effect on com petition.

Basis fo r C orporation approval, September 30, 1975
Pursuant to sections 5 and 18(c) and other provisions o f the Federal Deposit
Insurance A ct, applications have been filed fo r Federal deposit insurance fo r
First Financial Bank, Nashua, New Hampshire (New Bank), a proposed new
bank in organization, and fo r consent to its merger w ith Colonial T rust C om ­
pany, Nashua, New Hampshire, a State nonmember insured bank w ith total
resources o f $13,044,000 and IPC deposits o f $9,986,000 as o f December 31,
1974, under the charter o f New Bank and w ith the title "C olonial T rust C om ­
pany." The resulting bank w ill operate fro m the tw o existing offices o f C olo­
nial Trust Company.
The new bank fo rm a tio n and its immediate merger w ith Colonial T rust
Company are designed solely to effectuate a plan whereby Colonial T rust
Company w ould become a w h o lly owned subsidiary of First Financial Group
of New Hampshire, Inc., a registered bank holding company. The Board o f
Governors o f the Federal Reserve System approved the acquisition o f Colonial
Trust Company by First Financial Group on A p ril 22, 1975, after fu ll consider­
ation o f the com petitive and banking factors involved. New Bank w ill no t be in
operation as a commercial bank p rio r to the merger, but subsequent thereto it
w ill operate the same business as Colonial T rust Company at its tw o existing
locations. The merger proposal w ill not, per se, change the com petitive struc­
ture o f commercial banking in the relevant Nashua market served by Colonial
Trust Company or a ffect the banking services w hich the latter has provided in
the past. First Financial Group has agreed, however, to infuse Colonial T rust
Company w ith new management and to inject $800,000 in capital. A ll factors
required by law to be considered by the C orporation in connection w ith each
application are favorably resolved.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the applications is warranted.



F E D E R A L D E PO S IT I N S U R A N C E C O R P O R A T I O N

94

Keystone Bank
Lower Burrell, Pennsylvania

R e so u rce s
\l\n
in
th o u sa n d s
o f d o lla rs)

In
o p e ra tio n

57,481

14

68,947

4

B a n k in g O ffic e s
T o be
o p erated

18

to merge with

Commercial Bank & T rust Company
Pittsburgh

Summary report by A tto rn e y General, December 16, 1974
Keystone Bank and Commercial Bank are headquartered about 16 miles
apart. Keystone Bank, however, operates fo u r offices in the dow ntow n P itts­
burgh area which are w ith in 2 miles o f either of Commercial Bank's tw o
dow ntow n Pittsburgh offices. The nearest offices o f the parties, both in dow n­
tow n Pittsburgh, are separated by less than 1/2 mile. Thus, it appears this
acquisition w ould eliminate some existing com petition in the Pittsburgh area.
However, it does not appear th a t com petition in commercial banking w ould be
significantly increased in th a t commercial banking market; the resulting bank
would hold approxim ately 1 percent of Pittsburgh area deposits.
The proposed transaction w ould elim inate some existing com petition and
slightly increase concentration in commercial banking in the Pittsburgh area.
Basis fo r C orporation approval, September 30, 1975
Keystone Bank, Lower Burrell, Pennsylvania, a State nonmember insured
bank w ith total resources of $57,481,000 and total IPC deposits o f
$48,891,000, has applied, pursuant to section 18(c) and other provisions o f the
Federal Deposit Insurance A ct, fo r the C orporation's p rio r consent to merge
w ith Commercial Bank & T ru st Company, Pittsburgh, Pennsylvania ("C o m ­
mercial B an k"), a State nonmember insured bank w ith total resources o f
$68,947,000 and total IPC deposits o f $50,055,000. The 4 existing offices and
1 authorized bu t unopened office o f Commercial Bank would be operated as
branches of Keystone Bank, increasing the number o f its authorized offices to
20. Consent is also sought to exercise trust powers and to issue and retire
subordinated capital notes.
Com petition. Keystone Bank is headquartered in Westmoreland C ounty,
part o f the Pittsburgh SMSA, and operates 13 branches which serve 5 separate
and w idely dispersed sections of the Pittsburgh area, ranging from a rural and
agricultural section to the highly industrial and commercial c ity o f Pittsburgh.
Besides eight operating and one additional unopened office in Allegheny
County, Keystone Bank is represented in Arm strong, Butler, and Somerset
Counties as well as its headquarters county of Westmoreland.
C om m ercial Bank is headquartered in Pittsburgh (1970 population
520,117), and it operates three branches: one each in Allegheny, Washington,
and Westmoreland Counties. I t also has approval to establish a de novo branch
southeast of Pittsburgh in Westmoreland C ounty.
The area w ith in w hich the com petitive effects o f the proposed transaction
would be most dire ct and immediate can be approximated by the Pittsburgh
SMSA, a four-co u n ty region that includes the tw o counties (Allegheny and



B A N K A B S O R P T IO N S A P P R O V E D B Y T H E C O R P O R A T I O N

95

Westmoreland) in w hich both Keystone Bank and Commercial Bank have
offices. As o f June 30, 1974, 30 commercial banks were operating a total o f
419 offices in this banking market, which is dominated by the 4 largest banks
in Pittsburgh: Mellon Bank, N .A., Pittsburgh National Bank, Equibank, N .A.,
and The Union National Bank o f Pittsburgh. Even on a combined basis, Key­
stone Bank and Commercial Bank had less than 0.2 percent o f the commercial
bank IPC deposits in this market and only 14 offices.
The closest offices o f Keystone Bank and Commercial Bank are located in
dow ntow n Pittsburgh, approxim ately 0.8 miles apart. Numerous other banking
offices are also located in this densely urban area, including the adm inistrative
headquarters o f the fo u r largest Pittsburgh banks. While each o f the proponent
banks to some extent competes fo r business in this area, their m arket shares
overall are so low , and the intensity o f com petition from the fo u r large banks
so keen, that their proposed merger is not likely to eliminate any significant
amount of existing com petition or to influence in any perceptible way the
structure of commercial banking in the Pittsburgh SMSA.
Pennsylvania law permits Keystone Bank to branch th roughout Westmore­
land, Allegheny, Arm strong, Butler, Cambria, Fayette, Indiana, Somerset, and
Washington Counties. Commercial Bank can branch in Allegheny, Beaver,
Butler, Washington, and Westmoreland Counties. Only Beaver C ounty would
be excluded from the legal branching area o f the resultant bank. Both banks
have branched de novo in the past and the approval o f this proposal w ould
remove the possibility of increased com petition developing between them
through sim ilar expansion in the future. A n y significant future com petition
between them fro m this source, however, seems remote. Keystone Bank has
confined its office expansion mainly to areas north and northeast of Pittsburgh
while Commercial Bank's branching has been to the south and southeast o f
Pittsburgh. Furtherm ore, neither bank is likely to have much com petitive
impact through de novo branching in the city o f Pittsburgh where the fo u r
large banks are so entrenched. The proposed merger, in fact, may subject these
fo u r large banks to new com petition in the future as the resultant bank takes
advantage o f de novo branching opportunities in the SMSA which today are
going largely by default to the fo u r large Pittsburgh banks.
While a small degree o f existing com petition and some potential fo r in ­
creased com petition between Keystone Bank and Commercial Bank w ould be
eliminated by the proposed merger, the effect in the relevant m arket w ould be
negligible and there w ould continue to be an adequate number o f banking
alternatives in the SMSA.
The Board of Directors, accordingly, is of the opinion that the proposed
transaction would not, in any section o f the co u n try, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. While both banks
have shown certain weaknesses in recent years, generally speaking, one has
strengths where the other is weak. The financial and managerial resources o f
the resultant bank are considered satisfactory, as are its fu tu re prospects.
Convenience and Needs o f the C o m m u n ity to be Served. The residents and
businessmen o f the Pittsburgh SMSA w ould benefit fro m an in s titu tio n w ith
greater financial resources and a lending lim it o f almost $1 m illio n . T rust
services, automated applications, and equipm ent leasing services w ould become



96

F E D E R A L D E POS IT I N S U R A N C E C O R P O R A T I O N

available to Keystone Bank's customers. The resultant bank would provide a
larger, more diversified banking alternative which should in tim e be able to
compete more aggressively w ith the market leaders.
Based on the foregoing, the Board o f Directors has concluded th a t approval
o f the application is warranted.

R e so u rce s

B a n k in g O ffic e s

If iI n
n

Salem Bank and T rust Company
Goshen, Indiana

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

In
o p e ra tio n

106,238

5

15,069

1

T o be
operated

6

to merge with

Exchange State Bank
Wakarusa

Summary report by A tto rn e y General, November 4, 1975
Applicant's New Paris branch is located about 11 miles southeast o f Bank
and A pplicant's fo u r Goshen offices are about 13 miles northeast of Bank. A ll
are w ith in a radius o f about 13 miles from the city o f Elkhart, the county seat
and major population center o f E lkhart County.
The proposed merger w ill eliminate some existing com petition between the
parties and slightly increase concentration in commercial banking in E lkhart
County. A ccordingly, we conclude that the proposed transaction w ould have
some adverse com petitive effects.
Basis fo r C orporation approval, November 3, 1975
Salem Bank and T rust Company, Goshen, Indiana ("Salem B ank"), a State
nonmember insured bank w ith total resources o f $106,238,000 and total IPC
deposits of $79,820,000, has applied, pursuant to section 18(c) and other
provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's p rior
consent to merge w ith Exchange State Bank, Wakarusa, Indiana ("Exchange
B ank"), also a State nonmember insured bank, w ith total resources o f
$15,069,000 and total IPC deposits of $12,326,000, under the charter and title
of Salem Bank. As an incident to the merger, the sole office of Exchange Bank
would become the Wakarusa Branch of the resultant bank, increasing the
number o f its offices to six.
C om petition. Salem Bank operates its main office and tw o branches in the
city o f Goshen, a branch at Millersburg, and a branch at New Paris. A ll offices
are in E lkhart C ounty which is located east o f South Bend and just south o f
the Michigan border in north-central Indiana. Exchange Bank operates its sole
office in the farm ing com m unity of Wakarusa (1970 population 1,160) in
western E lkhart C ounty, approxim ately 12 road-miles southwest o f Goshen
and 10 miles south o f the c ity of Elkhart.
E lkhart C ounty has a balanced economy w ith both agriculture and manu­
facturing co ntrib u tin g to the broad economic base. The population of the



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97

county in 1970 was 126,529, an 18.5 percent increase over the 1960 popula­
tion. The c ity of Elkhart, w ith a 1970 population o f 43,152, is the county's
largest city and chief commercial and industrial center. Goshen, the county
seat and second largest c ity , had a 1970 population o f 18,004, w hich rep­
resented a 31.2 percent increase over 1960. Wakarusa's 1970 population was
relatively unchanged from the 1960 figure. The 1974 median household buying
level fo r the county was $13,798, substantially higher than the State median o f
$12,555.
The effect o f the proposed merger w ould be lim ited to E lkhart C ounty,
which is the legal branching and merging area of the tw o banks involved. Saiem
Bank, because of Goshen's central location, serves all of E lkhart C ounty, w hile
Exchange Bank's market appears to be lim ited to the western th ird of the
county. While Exchange Bank draws most o f its business fro m a d istin ct local
area, there is some degree of overlap and some existing com petition between
the banks. However, the dollar volume o f this existing com petition is small;
three offices o f the county's tw o largest banks are located 6 miles south o f
Wakarusa in Nappanee and tw o offices of these same banks are located 7 miles
north in Concord Township. Twelve miles separate the nearest offices o f Salem
Bank and Exchange Bank, but the area is sparsely populated and served by a
mediocre highway system. There is no direct access road between any office o f
Salem Bank and Exchange Bank. While the proposed merger w ould eliminate
some existing com petition, it is not considered significant in amount.
Indiana law provides home office protection; therefore, neither of the banks
involved in this proposal could branch de novo into the other's headquarters
city. The most significant area o f overlap between Exchange Bank and Salem
Bank occurs around the city o f E lkhart which is closed to de novo entry by the
subject banks. Exchange Bank lacks the experience and the financial and man­
agerial resources, in any event, to be an effective com petitor through the
establishment o f de novo branches in the areas served by Salem Bank. De novo
entry by Salem Bank into the area surrounding Wakarusa now served by Ex­
change Bank appears u nlikely in view of the lim ited population of the Waka­
rusa area. It thus seems unreasonable to expect significant future com petition
to develop between Salem Bank and Exchange Bank through such de novo
branching.
E lkhart C ounty banking is dominated by First National Bank and St. Joseph
Valley Bank, both headquartered in the c ity o f Elkhart. They operate a total o f
29 offices and together control 67 percent of the county's $433 m illio n IPC
deposits. Salem Bank is the th ird largest o f eight commercial banks in the
county and controls 17.1 percent o f these deposits. Exchange Bank holds 2.7
percent o f this market, while fo u r other banks (including an inactive private
bank also headquartered in Wakarusa) hold in the aggregate 13.2 percent o f the
IPC deposits. The resultant bank's 19.8 percent share o f such deposits would
not change Salem Bank's standing in the market, nor is it likely th a t the
proposed merger w ould perceptibly change the present structure o f commercial
banking in the county.
Under the circumstances, the Board o f Directors is o f the opinion th a t the
proposed merger w ould not, in any section o f the co untry, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; Future Prospects. The financial and



98

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

managerial resources and future prospects o f Salem Bank and of the resultant
bank are regarded as satisfactory. The proposal w ill serve to provide Exchange
Bank w ith needed managerial resources, and its future prospects appear to be
more favorable as part o f the resultant bank than as an independent e n tity.
Convenience and Needs o f the C om m unity to be Served. The principal
benefits o f the proposed merger w ould accrue to the customers of Exchange
Bank who w ould have a greater amount of lendable funds at their call, a
significantly increased lending lim it, automated banking, and a broader variety
of tru st services.
Based on the foregoing in fo rm a tio n , the Board of Directors has concluded
that approval o f the application is warranted.

Bank o f Virginia-Potom ac
Fairfax C ounty, V irginia

R e so u rce s
(in
th o u sa n d s
o f d o llars)

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

T o be
op e rate d

175,702

28

32

19,630

4

to merge with

Bank o f Virginia-Fredericksburg
Fredericksburg

Summary report by A tto rn e y General, August 22, 1975
The merging banks are both m ajority-owned subsidiaries o f the same bank
holding company. As such, their proposed merger is essentially a corporate
reorganization and w ould have no effect on com petition.
Basis fo r C orporation approval, November 3, 1975
Bank of Virginia-Potomac, Fairfax C ounty, V irginia, a State nonmember
insured bank w ith total resources o f $175,702,000 and total IPC deposits o f
$129,934,000, has applied, pursuant to section 18(c) and other provisions o f
the Federal Deposit Insurance A ct, fo r the C orporation's prio r consent to
merge under its charter and title w ith Bank of Virginia-Fredericksburg,
Fredericksburg, V irginia, w ith total assets o f $19,630,000 and total IPC de­
posits of $14,835,000. As an incident to the merger, the 4 offices o f Bank o f
Virginia-Fredericksburg would be established as branches of the resulting bank,
increasing to 32 the number o f its offices.
This proposed transaction is designed solely as a means by which Bank o f
Virginia Company, Richmond, V irginia, a registered bank holding company,
can consolidate its operations in the counties o f A rlin g to n , Fairfax, and Prince
William and in the independent cities of Alexandria, Falls Church, Fredericks­
burg, and Manassas, V irginia. Both Bank of Virginia-Potomac and Bank o f
Virginia-Fredericksburg are owned by Bank o f V irginia Company and this
proposed transaction w ould not, in any section o f the country, substantially
lessen com petition, tend to create a m onopoly, or in any other manner be in
restraint o f trade.



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B A N K A B S O R P T IO N S A P P R O V E D B Y T H E C O R P O R A T IO N

A ll other factors requiring consideration are favorably resolved.
On the basis o f the foregoing in fo rm a tio n , the Board o f Directors has con­
cluded that approval o f the application is warranted.

The Peoples Bank and T rust Company
Tupelo, Mississippi

B a n k in g O ffic e s

R e so u rce s
(in
th o u sa n d s
o f d o lla rs)

In
o p e ra tio n

T o be
op erated

106,398

16

18

to merge with

Bank o f P ontotoc
Pontotoc

15,610

2

Approved under emergency provisions. No report requested fro m
A tto rn e y General.

the

Basis fo r C orporation approval, November 26, 1975
The Peoples Bank and Trust Company, Tupelo, Mississippi, a State non­
member insured bank w ith total resources o f $106,398,000 and total IPC
deposits o f $79,725,000, has applied, pursuant to section 18(c) o f the Federal
Deposit Insurance A ct, fo r the C orporation's prior consent to merge w ith Bank
of Pontotoc, Pontotoc, Mississippi, w ith total resources o f $15,610,000 and
total IPC deposits o f $13,392,000. Incident to the proposed merger, the 2
offices o f Bank o f Pontotoc w ould be established as branches o f the resulting
bank, thereby increasing the number of its offices to 18.
The Board o f Directors has determined th a t the Corporation must act
im mediately in order to prevent the probable failure of Bank o f Pontotoc. On
the basis o f this finding, the proposed transaction is approved.
Under section 18(c)(6) o f the Federal Deposit Insurance A ct, the trans­
action may be consummated im m ediately.

Re so u rce s
(in
th o u sa n d s
of d o llars)

Sterling T rust Company
Johnson, Verm ont

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

9,921

2

7,354

2

to acquire the assets and assume
the deposit liabilities o f

The Enosburg Falls National Bank
Enosburg Falls



T o be
operated

4

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

100

Summary report by A tto rn e y General, November 4, 1975
We have reviewed this proposed transaction and conclude th a t it would not
have a substantial com petitive impact.
Basis fo r C orporation approval, November 26, 1975
Sterling Trust Company, Johnson, V erm ont ("S te rlin g "), a State non­
member insured bank having total resources of $9,921,000 and total IPC
deposits o f $8,354,000, has applied, pursuant to section 18(c) and other pro­
visions o f the Federal Deposit Insurance A ct, fo r the C orporation's prior con­
sent to acquire the assets o f and assume lia b ility to pay deposits made in The
Enosburg Falls National Bank, Enosburg Falls, V e rm o n t ("Enosburg Na­
tio n a l"), w ith total resources of $7,354,000 and total IPC deposits o f
$6,591,000. The banks w ould effect the proposed transaction under the
charter and title o f Sterling and, incident to the transaction, the tw o offices o f
Enosburg National w ould become branches of the resultant bank, giving it a
total o f five authorized offices.
C om petition. Sterling operates tw o offices in the northwest part o f V er­
m ont: its main office in Johnson, in central Lamoille C ounty, and a branch in
Jericho, in central Chittenden C ounty, 23 road-miles southwest o f the main
office. A second branch has been approved, to be established in H ardwick, in
Caledonia C ounty, 19 road-miles southeast o f the main office. In this section
of V erm ont, agriculture, although of decreasing im portance in recent years,
continues to lend significant economic support, supplemented by tourism and
w inter recreation centering in Stowe and m ountainous southwestern Lam oille
C ounty, one o f the leading ski areas in the Northeast. The Jericho area is
developing as a residential suburb o f B urlington, V erm ont's largest c ity , which
is 16 miles to the west. Enosburg National has its main office in the village o f
Enosburg Falls (population 1,266) and a branch in M ontgom ery Center (popu­
lation 651), both locations being in the northeast part o f Franklin C ounty.
This county lies north of Lamoille and Chittenden Counties and adjoins the
Canadian border.
The area w ith in w hich the com petitive effects of the proposed transaction
would be most immediate and direct consists of the northeast quadrant o f
Franklin C ounty, extending east from Enosburg Falls some 20 road-miles to
the edge of Orleans C ounty, north some 12 road-miles to the Canadian border,
and both west and south some 10 road-miles to include the towns o f Sheldon
and Bakersfield. Three commercial banks have a total of fo u r offices in this
local m arket serving approxim ately 9,850 people and holding, on June 30,
1974, aggregate IPC deposits o f $20,260,000. The Howard Bank, the second
largest commercial bank in the State, had 34.6 percent o f such deposits at its
branch in Enosburg Falls; Enosburg National had 34.4 percent; and FranklinLamoille Bank, V erm ont's sixth largest commercial bank, had the remaining 31
percent o f such deposits at its branch in R ichford, a tow n 14 road-miles n o rth ­
east o f Enosburg Falls. Sterling, whose nearest office is more than 25 miles
away over sparsely populated mountainous terrain, is not represented in this
market.
A lthough Sterling's northern Lam oille C ounty market abuts Enosburg
National's market, there is no significant m arket area overlap. Tw o other banks
have offices between the closest offices o f Sterling and Enosburg National, and



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101

neither appears to draw much business from areas served by the other. A ccord­
ingly, the proposed transaction would n o t eliminate any significant existing
com petition between the tw o proponents.
Enosburg National's market, is one of sparse and declining population and
below-average buying levels (F ranklin C ounty's 1974 median household buying
level o f $8,438 was 16.9 percent below the State median) and the State's
second largest commercial bank has an office in Enosburg Falls. In view o f
these factors, Sterling w ould be u n likely to fin d this m arket attractive fo r de
novo entry. For its part, Enosburg National has an aged management and no
incentive fo r de novo expansion. Thus, the proposed transaction is u n like ly to
foreclose any significant potential fo r increased com petition between the tw o
banks in the near future.
On a statewide basis, the tw o banks combined w ould control less than 1.3
percent o f aggregate commercial bank deposits.
Based on the foregoing, the Board o f Directors has concluded th a t the
proposed purchase and assumption transaction w ould not, in any section o f the
country, substantially lessen co m p e titio n , tend to create a m onopoly, or in any
other manner be in restraint o f trade.
Financial and Managerial Resources; F uture Prospects. Both proponents
have acceptable financial resources fo r the am ount o f business they presently
transact. Managerial resources o f Sterling are acceptable. Enosburg National has
a significant managerial and management succession problem and its fu tu re
prospects, as an independent organization, appear to be unfavorable. Future
prospects o f the resultant bank, w ith an infusion o f $ 2 0 0 , 0 0 0 of additional
capital funds, w ould be favorable.
Convenience and Needs o f the C om m unity to be Served. Banking customers
of the Enosburg-Montgomery area w ould be served by a larger bank w ith a
stronger, more aggressive management, a higher lending lim it, and a greater
supply o f lendable funds. Computerized services would be available at Enos­
burg National's offices. The resultant bank should stimulate co m petition w ith
The Howard Bank and Franklin-Lam oille Bank to the advantage o f farmers,
businessmen, and residents of the market area as a whole.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the application is warranted.

First V irginia Bank o f Tidewater
N o rfo lk, V irginia

B a n k in g O ffic e s

R e so u rce s
(in
th o u sa n d s
o f d o lla rs)

In
o p e ra tio n

T o be
operated

116,559

23

26

8,999

3

to merge with

First V irginia Bank o f Nansemond
S u ffo lk



102

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

Summary report by A tto rn e y General, November 4, 1975
The merging banks are both w h o lly owned subsidiaries o f the same bank
holding company. As such, th e ir proposed merger is essentially a corporate
reorganization and w ould have no effect on com petition.
Basis fo r C orporation approval, November 26, 1975
First Virginia Bank o f Tidewater, N o rfo lk, V irginia ("T idew ater B ank"), a
State nonmember insured bank w ith total resources o f $116,559,000 and IPC
deposits of $90,659,000, has applied, pursuant to section 18(c) and other
provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's p rio r
consent to merge w ith First Virginia Bank of Nansemond, S u ffo lk , V irginia
("Nansemond B a n k"), a State nonmember insured bank w ith total resources o f
$8,999,000 and IPC deposits o f $7,037,000, under the charter and title o f
Tidewater Bank. The three offices of Nansemond Bank w ill be operated as
branches of the resulting bank.
This proposed transaction is designed solely as a means by w hich First
Virginia Bankshares C orporation, Falls Church, Virginia ("H o ld in g C om pany"),
a registered bank holding company, can consolidate its operations in the T id e ­
water Virginia area. Both Tidewater Bank and Nansemond Bank are owned by
Holding Company, and this proposed transaction w ould n o t in itself change the
structure o f com petition in the area nor should it affect the banking services
that are provided.
The Board of Directors is o f the opinion that the proposed transaction
would not, in any section o f the country, substantially lessen com petition,
tend to create a m onopoly, or in any other manner be in restraint of trade.
A ll other factors requiring consideration are favorably resolved.
On the basis o f the foregoing in form ation, the Board of Directors has con­
cluded that approval of the application is warranted.

State Bank fo r Savings
H artford, C onnecticut

B a n k in g O ffic e s

R e so u rce s
(in
th o u sa n d s
of d o llars)

In
o p e ra tio n

T o be
operated

206,695

5

6

23,571

1

to m erge w ith

Canaan Savings Bank
N orth Canaan

Summary report by A tto rn e y General, September 8 , 1975
We have reviewed this application and conclude that the proposed trans­
action would not have a substantial com petitive impact.
Basis fo r C orporation approval, November 28, 1975
State Bank fo r Savings, H artford, Connecticut, an insured mutual sav­
ings bank w ith total resources of $206,695,000 and total deposits of



B A N K A B S O R P T IO N S A P P R O V E D B Y T H E C O R P O R A T IO N

103

$192,082,000, has applied, pursuant to section 18(c) and other provisions o f
the Federal Deposit Insurance A ct, fo r the C orporation's p rio r consent to
merge w ith Canaan Savings Bank, N orth Canaan, Connecticut, also an insured
mutual savings bank, w ith total resources o f $23,571,000 and total deposits o f
$21,329,000, under the charter and w ith the title "S tate Bank fo r Savings."
The sole office of Canaan Savings Bank w ould be established as a branch o f the
resultant bank, increasing the number o f its offices to seven, including one
approved but unopened branch.
C om petition. State Bank fo r Savings has its main office in H artford, tw o
branches in suburban West H artford, one office in G lastonbury, another suburb
of H artford, and one office in Enfield approxim ately 21 road-miles north o f
the main office. It also has the necessary supervisory approvals to establish an
office in Simsbury, some 15 miles northwest o f H artford. A ll of these offices
are in H artford C ounty, in central Connecticut. Canaan Savings Bank has its
sole office in N orth Canaan, in L itch fie ld C ounty, in extreme northwestern
Connecticut.
The com petitive im pact o f the proposed merger w ould be most direct and
immediate w ith in the prim ary trade area o f Canaan Savings Bank, a market
which comprises com m unities located w ith in some 18 road-miles of N orth
Canaan, including Great Barrington, Massachusetts, to the n orth; M illerton,
New Y ork, to the southwest; and Winsted, Connecticut, to the southeast.
Winsted is an Industrial c ity ; the remainder o f the market is largely rural,
agricultural, and partly a State forest. The 1970 population of this market,
estimated at 42,225, increased some 10.3 percent during the 1960s. The com ­
parable increase fo r C onnecticut as a whole was 19.6 percent.
In this local market, there are 1 0 offices o f 8 mutual savings banks, w ith no
other th r ift in stitu tio n being represented. Great Barrington Savings Bank has
38.3 percent o f the $145.1 m illio n aggregate deposits held by the market's 10
savings bank offices. Winsted Savings Bank has 20.6 percent o f such deposits;
Mechanics Savings Bank o f Winsted, 17.6 percent. Canaan Savings Bank has
14.1 percent, the fo u rth largest share. State Bank fo r Savings has no o ffice in
this market, and its proposed branch in Simsbury w ould be 38 miles away. The
latter's closest office is located in West H artford, some 40 road-miles southeast
of N orth Canaan. Neither bank draws a meaningful amount o f its business from
areas served by the other, w ith the result that approval o f the proposed trans­
action w ould not eliminate any existing com petition between the tw o banks.
In addition, the merger w ould eliminate no significant potential fo r in ­
creased com petition between the tw o banks through de novo branching in the
future. The proposed Simsbury branch o f State Bank fo r Savings w ould oper­
ate in a market separate and distin ct fro m th a t of Canaan Savings Bank. State
Bank fo r Savings may n o t enter de novo the tow n of N orth Canaan because o f
home office protection provided by State law, nor w ould the environs be
attractive fo r such entry. Canaan Savings Bank's market presently has a savings
bank office fo r every 4,223 people— far less than the statewide ratio of 10,713
people fo r each savings bank office on June 30, 1974— and the area's rate o f
population increase lagged significantly the statewide grow th rate during the
1960s. For its part, Canaan Savings Bank, a u n it operation fo r 1 0 2 years,
presently lacks the financial and managerial resources, as well as the inclina­
tion, to engage in de novo expansion.
The proposed transaction w ould constitute a geographic extension o f State



104

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

Bank fo r Savings' market. The latter's position as fo u rth largest th r ift in s titu ­
tion in the H artfo rd area w ould remain unchanged. Upon consummation o f the
merger, State Bank fo r Savings w ould become the 11th largest o f 102 mutual
th r ift institutions in a relatively unconcentrated State, w ith approxim ately 2
percent o f the aggregate deposits held at year-end 1974 by all mutual savings
banks and insured savings and loan associations in Connecticut.
Considering the foregoing, the Board of Directors has concluded th a t the
proposed merger w ould not, in any section o f the co untry, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; F uture Prospects. State Bank fo r Sav­
ings has satisfactory financial and managerial resources. Its fu tu re prospects are
favorable. W ith a marginally acceptable asset structure, Canaan Savings Bank
would have more favorable fu tu re prospects as a part of the resultant bank
than were it to continue as an independent in stitutio n .
Convenience and Needs o f the C om m unity to be Served. The resultant bank
w ould provide services not presently available to Canaan Savings Bank cus­
tomers, including a broader range o f personal loan services, loans under the
C onnecticut Housing Finance A u th o rity program, investment accounts, a
higher rate o f interest on certain tim e deposits, savings bank life insurance, and
Saturday banking hours. These added conveniences fo r both borrowing and
depositing customers should provide more effective com petition to the other
th r ift institutions and the commercial banks represented in the N orth Canaan
local market.
The Board of Directors, in view o f the circumstances described, has con­
cluded that approval of the application is warranted.

Bank o f Virginia-Tidew ater
N o rfo lk, V irginia
(change title to Bank of
Virginia-Eastern)

Re so u rce s
(in
th o u sa n d s
o f d o lla rs)

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

T o be
operated

132,755

14

25

103,314

11

to merge with

Bank o f Virginia-Peninsula
N ew port News

Summary report by A tto rn e y General, September 15, 1975
The merging banks are both w h o lly owned subsidiaries o f the same bank
holding company. As such, th e ir proposed merger is essentially a corporate
reorganization and w ould have no e ffect on com petition.
Basis fo r Corporation approval, November 28, 1975
Bank o f Virginia-Tidewater, N o rfo lk, V irginia ("T id e w a te r"), a State non­
member insured bank w ith total resources o f $132,755,000 and IPC deposits



B A N K A B S O R P T IO N S A P P R O V E D B Y T H E C O R P O R A T IO N

105

of $93,318,000, has applied, pursuant to section 18(c) and other provisions o f
the Federal Deposit Insurance A ct, fo r the C orporation's p rio r consent to
merge w ith Bank o f Virginia-Peninsula, N ew port News, V irginia ("P eninsula"),
a State nonmember insured bank w ith total resources o f $103,314,000 and IPC
deposits o f $74,221,000, under the charter o f Tidewater and w ith the title
"B ank of V irginia-Eastern." The 12 approved offices of Peninsula w ill be oper­
ated as branches o f the resulting bank.
This proposed transaction is designed solely as a means by w hich Bank o f
Virginia Company, Richmond, Virginia ("H o ld in g C om pany"), a m ultibank
holding company, can consolidate its operations in Y o rk C ounty and the
independent cities o f Chesapeake, Ham pton, N ew port News, N o rfo lk , Ports­
mouth, S u ffo lk, and Virginia Beach. Both Tidewater and Peninsula are owned
by Holding Company, and this proposed transaction w ould not in itself change
the structure o f com petition in the area nor should it affect the banking
services w hich are provided.
The Board of Directors is o f the opinion that the proposed transaction
would not, in any section o f the co untry, substantially lessen com petition,
tend to create a m onopoly, or in any other manner be in restraint o f trade.
A ll other factors requiring consideration are favorably resolved.
On the basis o f the foregoing in fo rm a tio n , the Board o f Directors has con­
cluded tha t approval of the application is warranted.

R e so u rce s
(in
th o u sa n d s
o f d o lla rs)

The Citizens and Southern Em ory Bank
DeKalb C ounty, Georgia

134,146

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

10

T o be
o perated

12

to acquire the assets and assume
the deposit liabilities o f

The Citizens and Southern Bank o f Tucker
Tucker, Georgia

44,686

2

Summary report by A tto rn e y General, November 25, 1975
The Departm ent o f Justice filed a com petitive report dated March 12, 1971,
regarding, in te r alia, an earlier e ffo rt by A pplicant to acquire fu ll control o f
Tucker Bank. The Corporation thereafter denied the application on October 5,
1971.
The earlier, unsuccessful e ffo rt by A p p lica n t to acquire Tucker Bank was
part o f a larger, u ltim a te ly successful campaign by C&S National to acquire five
banks w ith which it was affiliated through the ownership o f 5 percent of the
outstanding stock o f each— a system of correspondent associate banks. The
Corporation approved these acquisitions, w hile denying the application to
acquire Tucker Bank.
A subsequent a n titru st action by the Departm ent challenging the approved
acquisitions as violations of section 7 o f the Clayton A ct, and all o f the existing



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106

"correspondent associate" relationships (including that o f Tucker Bank) as
violations o f the Sherman A ct, was unsuccessful. In its opinion affirm ing dis­
missal of this case (U nited States v. Citizens & Southern N ational Bank, 422
U.S. 8 6 (1975)), the Supreme C ourt concluded th a t the correspondent asso­
ciate programs in effect w ith respect to Tucker Bank (and tw o other banks),
which were likened to de facto branches whose operations were directly and
indirectly controlled by the C&S organization, were immunized from attack
under the Sherman A c t by a "sim ple conferral o f legislative am nesty." (Id, 422
U.S. at 108.) The C ourt also noted th a t neither the D istrict C ourt nor the
FDIC could find any realistic prospect th a t denial of the acquisitions there in
question w ould lead the defendant banks to compete against one another. (Id,
422 U.S. at 1 2 1 .)
We continue to believe th a t there are some circumstances in which p rio r
existing relationships between banks would not ju s tify attempts at more form al
and permanent a ffilia tio n . However, the Supreme Court's opinion relating to
this m atter compels the conclusion th a t the proposed transaction would not
eliminate any significant existing or potential co m p e titio n ; thus, we do not
oppose its approval.
Basis fo r C orporation approval, December 1, 1975
The Citizens and Southern Emory Bank, DeKalb C ounty, Georgia ("E m o ry
B ank"), a State nonmember insured bank w ith to ta l resources o f $134,146,000
and total deposits of $113,760,000, has applied, pursuant to section 18(c) and
other provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's
prior consent to acquire the assets o f and assume lia b ility to pay deposits made
in The Citizens and Southern Bank of Tucker, Tucker, Georgia ("T u cke r
B ank"), also a State nonmember insured bank, w ith total resources o f
$44,686,000 and total deposits o f $35,463,000.* Em ory Bank has also applied
under section 18(d) of said A c t fo r consent to establish the tw o offices o f
Tucker Bank as branches o f the resulting bank.
Background. Tucker Bank, established in 1919, became affiliated w ith the
C&S system early in 1965 when Citizens and Southern Holding Company,
Savannah, Georgia ("C &S H o ld in g "), acquired 5 percent of Tucker Bank's
outstanding capital stock while 75 percent o f such stock was acquired by
officers and staff of the C&S system, their associates, the C&S P ro fit Sharing
Fund, and several directors chosen by the system fo r Tucker Bank. A t the tim e
of this a ffilia tio n , Tucker Bank had deposits approxim ating $4 m illio n — about
5 percent o f DeKalb C ounty's commercial bank deposits— and operated one
office. By virtue o f the transaction, the C&S system increased its control over
DeKalb C ounty commercial bank deposits to approxim ately 29 percent and its
share of the county's commercial bank offices to approxim ately 26 percent.
The State o f Georgia, at the tim e, did not perm it direct branching by Citizens
and Southern National Bank o f A tlanta into the DeKalb C ounty suburbs. The
only means of expansion then available to the C&S system in DeKalb C ounty
was to sponsor newly form ed banks or to acquire control o f existing banks, so

* F inancial data as o f June 30, 1975. Data w ith respect to E m ory Bank have been adjusted
to re fle c t th a t ba n k's N ovem ber 1, 19 75 acq u is itio n s o f The C itizens and S ou th e rn B ank
o f C ham blee, T h e C itizens and S outh ern Park N ational B ank, and T h e C itizens and
S outh ern S outh D eK alb B ank.




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long as C&S Holding in either case did not own more than 5 percent of the
stock of the banks so sponsored or acquired. As a consequence, the C&S
system sponsored de novo several "5-percent banks" in DeKalb C ounty.
Tucker Bank is the only DeKalb C ounty C&S "5-percenter" th a t was not
sponsored de novo.
In 1970, when a change in Georgia's branching laws became effective, the
C&S system sought to reorganize its 5-percent banks in the A tla n ta area by
merging them into w h o lly owned C&S subsidiaries in Fulton and DeKalb
Counties. Six such merger applications came before the C orporation's Board o f
Directors fo r approval under the Bank Merger A c t and five were so a p p ro ve d all fo r banks originally sponsored de novo by the C&S system (see 1971 FDIC
A nnual R eport 95-100). The application to merge Emory Bank and Tucker
Banks was denied, essentially on the grounds that the 1965 a ffilia tio n between
the tw o banks was anticom petitive in its origins and should not be ratified by
the Corporation's approval under the Bank Merger A ct, even though no exist­
ing com petition w ould be, and no significant fu tu re com petition was like ly to
be, eliminated by th e ir merger in 1971 (see 1971 FDIC A nnual R eport
152-155). The Department o f Justice sued to prevent consummation of the
five proposed mergers which the FDIC had approved and to enjoin under
section 1 of the Sherman A c t the "correspondent associate relationship" which
the C&S system had w ith all six banks. T hat litigation resulted u ltim a te ly in a
6— 3 decision favorable to the C&S system on all counts (U nited States v.
Citizens & Southern N ational Bank e t al.f 422 U.S. 8 6 (June 17, 1975)). On
November 1 of this year, the five approved mergers were fin a lly consummated.
The C&S system, in the interim , filed a new application fo r FDIC approval o f
its proposed merger o f Tucker Bank into Emory Bank.
C om petition. The Board o f Directors sees no reason to change the view it
expressed in 1971 that the acquisition o f control over Tucker Bank by the C&S
system was substantially anticom petitive when it occurred in 1965. It has,
however, carefully reviewed its earlier decision in the light of the Supreme
Court's discussion o f the "grandfather clause" contained in the 1966 amend­
ments to the Bank Holding Company A ct, 12 U.S.C. section 1849(d) (Public
Law 89-485). This "grandfather clause," in essence, forgave bank holding com ­
panies of prior violations of the a n titru st laws (other than section 2 of the
Sherman Act) if the A tto rn e y General failed to initiate an action to block the
violation prior to July 1, 1 9 6 6 .**
In relevant part, the Supreme C ourt said:
Unlike § 1849(b) [governing post - July 1, 1966 acquisitions] this
provision [§ 1849(d)] does not state or im ply th a t the covered trans­
actions must have received the form al approval o f the Federal Reserve
Board [under the Bank Holding Company A c t]. This grandfather p ro­
vision is not, like § 1849(b), an attem pt to accommodate the competing
jurisdictions of the Federal Reserve Board under § 1842 and the Justice
Department under the a n titru st laws. Rather, the grandfather provision is
a simple conferral o f legislative amnesty fo r theretofore unchallenged

* * A som ew hat s im ila r p ro v is io n in the 1966 am endm ents to th e B ank M erger A c t re quired
such actio n to be in itia te d b y th e A tto r n e y General p rio r to F e b ru a ry 2 1 , 1966 (P ub lic
Law 8 9 -3 5 6 , § 2 (b )).




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

108

transactions completed before Congress had clarified the nature of that
accommodation.
The transactions by which C&S created a correspondent associate
relationship w ith three o f the 5-percent banks— the Sandy Springs,
Chamblee, and Tucker banks— were consummated p rio r to July 1966,
and the A tto rn e y General had taken no action against those transactions
by that date. Those transactions thus fa ll w ith in the terms o f the grand­
father provision, and the correspondent associate programs in force a t
those three banks are, therefore, im m une from attack under % 1 o f the
Sherman Act.
While the form a tio n by C&S of a de facto branch was a unique type
of transaction, it may fa irly be characterized as an 'acquisition, merger,
or consolidation of the kind described in § 1842 (a).' Forming a de
facto branch was a m ultifaceted operation— involving a m u ltip lic ity o f
purchases o f stock by a number o f parties, the adoption of the C&S
logogram by the de facto branch, the connection o f the de facto branch
w ith C&S personnel and in fo rm a tio n programs, the structuring of the
bank to receive and administer all C&S banking services, and the estab­
lishment of form al C&S influence over the board of directors at the de
facto branch. But even before its scope was expanded in 1970 § 1842(a)
was concerned w ith more than the literal 'acquisition' o f stock: I t took
broad account o f the 'in d ire c t' c o n tro l o f stock, and the c o n tro l o f
boards o f directors 'in any m a n n e r/ b y bank holding companies. The
grandfather provision creates im m u n ity under § 1 o f the Sherman A ct,
n o t sim p ly under % 7 o f the Clayton A c t, an indication th a t its p ro te c­
tion extends n o t m erely to lite ra l acquisitions, mergers, and consolida­
tions, b u t also to 'restraints o f trade'sim ultaneous w ith and fu n c tio n a lly
integral to such transactions. Though to 'restraints o f trade' sim ulta­
neous w ith and fu n c tio n a lly integral to such transactions. Though m u lti­
faceted, the form a tio n b y C&S o f a de facto branch was a unitary and
cohesive undertaking in the sense th a t all the facets were closely co o rd i­
nated, simultaneously instituted, and designed to serve the single purpose
of fittin g the new bank into the 'C&S system.' There is v irtu a lly nothing
about the present correspondent associate programs th a t was not fu lly
evident and in place from the mom ent the programs were launched.
There has been no increase in C&S control, nor any change in the way it
has been exercised.
Whether these programs violated § 1842(a)— as it applies today or as
it applied when the programs began— is not relevant to our in q u iry . 19 By
its terms, the grandfather provision applies to transactions o f the k in d
described in § 1842(a). We cannot believe th a t Congress wished to grant
the benefits o f the provision only to transactions that plainly trans­
gressed § 1842(a). Such a construction w ould make application of the
grandfather provision not only cumbersome and tim e consuming [fo o t­
note 20 o m itte d ] but also flagrantly inequitable. The fo rm a tio n of a de
facto C&S branch involved the direct and indirect acquisition o f bank

19The g ra n d fa th e r p ro v is io n creates a con clu sive p re s u m p tio n o f co m p lia n ce w ith
th e a n titru s t laws, b u t n o t necessarily o f co m p lia n ce w ith the p rovision s o f th e
FRASER Bank H old in g C om p any A c t. See 12 U.S.C. 1 8 4 9 (f).

Digitized for


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109

stock, and the direct and indirect assertion of control over the gover­
nance and operations o f a bank, by a bank holding company. Though
unusual in fo rm , such a transaction quite clearly falls w ith in the class o f
dealings by bank holding companies which Congress intended, in §
1849(d), to shield from retroactive challenge under the a n titru st laws.
2. De Facto Branching Under the Sherman A c t
Three of the 5-percent banks— the Park National, South DeKalb, and
N orth F ulton banks— were form ed after July 1, 1966, and their corres­
pondent associate relationships w ith C&S are therefore beyond the reach
of the grandfather provision of the Bank Holding Company A c t and
subject to scrutiny under the Sherman A ct.
Each o f these banks was founded ab in itio through the sponsorship o f
C&S. Except fo r th a t sponsorship, they w ould very probably not exist.
The record shows th a t other banking organizations had been unsuccessful
in attem pting to launch new banks in the area, and C&S a ffilia tio n and
financial backing were instrumental in convincing state and federal bank­
ing authorities to charter these new banks. In short, these banks repre­
sented a policy by C&S of de facto branching through the fo rm a tio n o f
new banking units, rather than through the acquisition, and consequent
elim ination, of pre-existing, independent banks . 21 [Emphasis supplied.]

21The

Tucker Bank, which was n o t founded as a new bank b y C & S , com es within
the coverage o f the grandfather provision, as explained in the previous section.
D e facto bra n ch in g th ro u g h the de facto 'a c q u is itio n ' o f pre-existing banks m ig h t
raise questions un der the Sherm an A c t c o n s id e ra b ly d iffe r e n t fro m those p re­
sented b y th e C&S practice o f de facto b ranching th ro u g h fo u n d in g new banks.
[E m phasis su p p lie d .]

The Board o f Directors interprets this discussion as covering n o t merely the
attempted application o f Sherman A c t section 1 to the "correspondent asso­
ciate relationships" between the C&S system and Tucker Bank, b u t also any
e ffo rt to apply any other provision of the a ntitrust laws (save only section 2 o f
the Sherman A ct) to the 1965 acquisition o f control by the C&S system over
Tucker Bank.
S trictly speaking, the tw o "grandfather clauses" cited are silent about the
impact o f such a pre-1966 a n titru st violation on the "post-grandfather-date"
adm inistration of the Bank Holding Company A c t and the Bank Merger A c t;
but, the Board of Directors believes that where a pre-1966 a n titru st violation is
the o n ly reason fo r denying an application under either A c t, the responsible
agency should take the view that Congress intended to forgive the violation and
accordingly that the violation should not be considered in analyzing the
com petitive factors presented by the application. On the other hand, if control
of Tucker Bank had been acquired by the C&S system after the relevant
"grandfather d a te " in 1966 so that the a n titru st violation occurred thereafter
or if an analysis o f the traditional banking factors, including considerations o f
convenience and need, were to convince the responsible agency, even as to a
pre-1966 acquisition, that the application should be denied, the responsible
agency w ould be acting in co n fo rm ity w ith its statutory d u ty were it to pro­
ceed to deny the application. The Board o f Directors believes this to be the
only fair reading o f footnotes 19 and 21 in the c o n te xt o f the Supreme Court's



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

discussion o f the issues presented by the "grandfather clause" found in the
Bank Holding Company A ct.
Since the banking factors and considerations of convenience and need were
found to be neutral in the Board's original decision on this proposed merger
and since Congress apparently intended to forgive any a n titrust violation, other
than a violation o f Sherman A c t section 2 (which is not here in issue), based on
C&S's acquisition of control of Tucker Bank in 1965, the A tto rn e y General
not having sued p rio r to July 1, 1966, the Board has come to the conclusion
that the application now before it should be, and it hereby is, approved.

R e so u rce s
I\ in
in
th o u sa n d s
o f d o llars)

The Ottawa C ounty Bank
Minneapolis, Kansas

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

T o be
operated

6,383

1

2

8,733

1

to merge with

The Citizens National Bank o f Minneapolis
Minneapolis

Summary report by A tto rn e y General, July 31, 1975
Minneapolis, Kansas, is a small co m m u n ity o f about 2,000 located 25 miles
north of Salina. Minneapolis is the county seat of Ottawa County, a rural
county w ith a total 1970 population of 6,200.
Ottawa Bank and Citizens Bank are the only banks operating offices in
Minneapolis and are tw o o f five banks, all w ith total deposits ranging fro m $4
to $10 m illio n , operating in Ottawa C ounty. The other three Ottawa C ounty
banks are located at distances of approxim ately 10-12 miles from Minneapolis.
Four other, larger banks are located in Salina, approxim ately 25 miles from
Minneapolis. The proposed merger w ould eliminate existing com petition in
Minneapolis and Ottawa C ounty and increase concentration in commercial
banking in this area.
Basis fo r Corporation approval, December 1, 1975
The Ottawa C ounty Bank, Minneapolis, Kansas ("C o u n ty B ank"), a State
nonmember insured bank w ith total resources of $6,383,000 and total IPC
deposits o f $4,681,000, has applied, pursuant to section 18(c) and other pro­
visions o f the Federal Deposit Insurance A ct, fo r the C orporation's prior con­
sent to merge under its charter and title w ith The Citizens National Bank o f
Minneapolis, Minneapolis, Kansas ("C itizens N a tio n a l"), w ith to ta l resources o f
$8,733,000 and to ta l IPC deposits o f $6,693,000. As an incident to the merg­
er, C ounty Bank w ould establish the sole office o f Citizens National as a
branch, to be designated the main office, the sole office of the form er be­
coming the branch o f the resultant bank.



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111

C om petition. Each bank operates its only office in the c ity o f Minneapolis
(population 1,971), the centrally located county seat o f Ottawa C ounty (popu­
lation 6,183) in north-central Kansas. Production of wheat and other grains is
of major economic im portance in the area, although one m anufacturing plant
in the c ity employs some 100 people. A number o f local residents are em­
ployed in the c ity o f Salina (population 37,714), the sixth largest c ity in
Kansas and the only m unicipality w ith in 50 road-miles o f Minneapolis w ith a
population exceeding 7,300. Salina is 21 miles south of Minneapolis over U.S.
Route 81.
The local banking market in which the com petitive effects of the proposed
merger w ould be most immediate and direct probably excludes Salina and
consists o f Minneapolis and th a t area o f central Kansas w ith in a 10-12 mile
radius o f th a t city. This local market is sparsely populated, containing an
estimated 5,500 people. Five u n it banks, ranging in IPC deposit size fro m $3.5
m illion to $9 m illio n , serve this small market. Citizens National has the th ird
largest deposit share (19.7 percent) in this market while C ounty Bank has the
fo u rth largest deposit share (12.9 percent). T heir merger w ould obviously
eliminate some existing com petition between them and move the resultant
bank to firs t place in the market rankings, slightly ahead o f w hat w ould then
be the area's second and th ird ranking banks.
While these are adverse considerations, the market is very small and its
income level is 26 percent below the State average. A fte r the merger, fo u r
banks w ould serve the m arket— or one bank fo r an average o f 1,400 persons.
Relatively high levels of concentration are not unusual in such sparsely popu­
lated m arkets.* The Bank o f Tescott, some 12 miles to the southwest o f
Minneapolis, The State Bank of Delphos, a similar distance to the north, and
The Bennington State Bank, some 10 miles to the southeast, w ould continue to
be banking alternatives available to dissatisfied customers in the Minneapolis
area.
There appears to be no significant potential fo r increased com petition
between C ounty Bank and Citizens National in the future through de novo
branching. Kansas law confines a bank's branching to a maximum o f three
detached, lim ited power facilities, all o f w hich must be located w ith in the
bank's main office co m m unity. Office expansion by either C ounty Bank or
Citizens National w ith in Minneapolis, in view o f the city's modest size and the
sparse and declining population of its environs, appears to be unnecessary and
economically unfeasible.
Based on the foregoing, the Board o f Directors has concluded th a t the
proposed merger w ould not, in any section o f the co untry, substantially lessen
com petition, tend to create a m onopoly, or in any other manner be in restraint
of trade.
Financial and Managerial Resources; F uture Prospects. The financial and
managerial resources of Citizens National are satisfactory and the bank's future

*W ere Salina to be in c lu d e d in the relevant ba n kin g m a rke t, a to ta l o f 9 com m ercial banks
w o u ld op erate 16 o ffic e s fo r som e 4 7 ,0 0 0 people, h o ld in g area IPC deposits aggregating
$ 1 56 m illio n , w ith 4 banks in Salina having in d iv id u a l shares o f 25 .4 pe rcent, 24.1
percent, 20.1 percent, and 8.8 p e rcent o f such deposits. C itizens N ation al w o u ld have th e
seventh largest share o f such deposits (4.3 percent) w h ile C o u n ty B ank w o u ld have th e
eighth largest share (3 p e rcent). V iew ed in such a c o n te x t, th e ir proposed m erger w o u ld
n o t be considered s u b s ta n tia lly a n tic o m p e titiv e .




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

prospects are favorable. The condition of C ounty Bank, on the other hand, is
unsatisfactory and its future prospects are less than favorable. The resultant
bank, w ith augmented capital funds and controlled by the present management
o f Citizens National, would have satisfactory future prospects.
Convenience and Needs o f the C om m unity to be Served. C ounty Bank's fu ll
service office w ould be reduced at the tim e of the merger to a lim ited power
fa cility. This loss of convenience fo r certain o f the bank's customers w ould
have very lim ited impact, however, in view o f the fact th a t the tw o banks are
located w ith in one block of each other on the same street. The increased
lending lim it o f the resultant bank ($164,000) would serve the convenience o f
a fair number of customers. C ounty Bank, as a part o f the 'resultant bank,
w ould be restored as a viable co m p e tito r and the merger would thus contribute
to the needs and convenience o f the relevant market.
Based on the foregoing, the Board o f Directors has concluded that approval
o f the application is warranted.

R e so u rce s
(in
th o u sa n d s
o f d o lla rs)

First Pennsylvania Bank
Bala-Cynwyd, Pennsylvania

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

6,052,916

85

132,705

3

T o be
operated

95

to purchase the assets and assume
the deposit liabilities of

V irgin Islands National Bank
Charlotte Amalie, St. Thomas,
V irgin Islands

Summary report by A tto rn e y General, November 11, 1975
We have reviewed this proposed transaction and conclude th a t it would not
have a substantial com petitive impact.
Basis fo r C orporation approval, December 1, 1975
First Pennsylvania Bank N.A., Bala-Cynwyd, Pennsylvania ("F irs t Penn"), a
national banking association w ith total assets o f $6,052,916,000 and total IPC
deposits of $2,674,997,000, has applied, pursuant to section 18(c) and other
provisions o f the Federal Deposit Insurance A ct, fo r the C orporation's p rio r
consent to acquire the assets o f and assume the lia b ility to pay deposits made
in three uninsured offices of Virgin Islands National Bank, Charlotte Amalie,
St. Thomas, V irgin Islands ("V I N a tio n a l"), tw o o f w hich are located on T o r­
tola in the British V irgin Islands and the th ird o f which is located on A ntigua,
British West Indies. A p p lica tio n fo r consent to acquire the remaining assets and
assume the lia b ility to pay deposits in the seven insured offices o f V I National
is being made to the C om ptroller of the Currency. As an incident to the 2
applications, the $132,705,000 in total resources, the $118,632,000 o f total
deposits, and the 10 offices o f V I National w ould become the assets, deposits,



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113

and branches o f First Penn, increasing its assets and deposits slightly and the
total number o f its offices to 95.
Governing Facts. VI National has been a w h o lly owned subsidiary o f First
Penn since 1960. The proposed transactions are in effect a corporate consolida­
tion and reorganization th a t w ould have no adverse effects on com petition in
any relevant area. The convenience and needs of the public presently being
served by VI National w ould continue to be served fo llo w in g consumm ation by
First Penn, w ith possibly greater efficiency and local convenience.
Based on the foregoing, the Board o f Directors has concluded th a t approval
of the transaction is warranted.

Approval of Bank A bsorption Previously Denied by the C orporation

The Bank o f South Texas
Alice, Texas

B a n k in g O ffic e s

R e so u rce s
(in
th o u sa n d s
o f d o lla rs)

In
o p e ra tio n

T o be
operated

27,581

1

1

18,392

1

to m erge w ith

First National Bank o f A lice
Alice

Summary report by A tto rn e y General, December 10, 1974
There are six banks, each w ith one office, in Jim Wells C ounty. Three are in
Alice; one is in Orange Grove, about 15 miles from A lice; one in Sandia, about
20 miles from Alice; and one in Premont, about 30 miles from Alice. A p p lica n t
ranks second in total county deposits w ith nearly 25 percent, w hile Bank ranks
th ird w ith approxim ately 18 percent. The county's largest bank, located in
Alice, controls about 47 percent o f total deposits.
The proponents' offices are located about 2 miles apart in the c ity o f Alice.
A pplicant is the second largest o f three A lice banks, accounting fo r nearly 28
percent o f total city deposits w hile Bank is the smallest o f the three w ith
almost 2 0 percent.
The application indicates that the banks are presently under comm on
ownership and management. A group o f 16 persons (one of these is actually an
estate) cu rrently owns 181,871 shares, or about 73 percent, of the 250,000
authorized and outstanding shares of capital stock o f A p p lica n t; the same
group owns 119,976 shares, or about 80 percent, o f the 150,000 authorized
and outstanding shares o f Bank's capital stock. Even more significant is the fact
that one individual, W. Frederick Erck, owns nearly 57 percent (141,628
shares) o f A pplicant's stock and nearly 59 percent (87,999 shares) of Bank's
stock. The application indicates th a t the existing common ownership was
established in early 1970, when A pp lica n t and Bank each held approxim ately
$9 m illion in deposits.
In addition to comm on ownership, the proponents have tw o cases o f
common management. Mr. Erck serves as Chairman o f the Board of both Bank



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

114

and A pplicant and President o f Bank; he is also a director of both banks. Mr.
N. O. Adams, Jr. serves as President o f A pp lica n t and Vice President o f Bank;
he too is a d irector o f both banks.
In view o f th e ir comm on ownership and management, it appears u n like ly
tha t substantial com p e titio n presently exists between the parties to the pro­
posed transaction. Their merger w ould, however, make permanent whatever
lessening of com petition occurred when the banks became com m only owned.
Statement upon reconsideration, August 15, 1975
The Bank o f South Texas, A lice, Texas, a State nonmember insured bank
w ith total resources o f $27,581,000 and total IPC deposits o f $19,087,000,
applied, pursuant to section 18(c) and other provisions o f the Federal Deposit
Insurance A ct, fo r the C orporation's p rio r w ritte n consent to merge under its
charter and title w ith First National Bank of Alice, Alice, Texas ("F irs t Na­
tio n a l"), w ith total resources of $18,392,000 and to ta l IPC deposits o f
$13,302,000. On December 31, 1974, the application was denied.* Subse­
quently, The Bank o f South Texas requested the C orporation to reconsider its
denial and subm itted new evidence and in form ation not available to the C or­
poration at the tim e the original application was considered. Upon reconsidera­
tion in light of the newly presented facts, it is the judgm ent of the C orporation
that the convenience and needs in the relevant markets outweigh the a n ti­
com petitive effects which warranted the original denial. A ccordingly, the
application fo r consent to merge is hereby granted.
The standards applied by the Corporation in passing upon merger applica­
tions are set fo rth in subsection 18(c)(5) of the Federal Deposit Insurance A c t
which provides in te r alia th a t the Corporation shall not approve a merger
transaction "whose effect in any section o f the co u n try may be substantially to
lessen com petition . . . unless it finds th a t the anticom petitive effects of the
proposed transaction are clearly outweighed in the public interest by the
probable effect of the transaction in meeting the convenience and needs o f the
com m unity to be served." In addition, the same subsection provides that:
" [ i ] n every case, the responsible agency shall take into consideration the fin a n ­
cial and managerial resources and future prospects o f the existing and proposed
institutions, and the convenience and needs of the co m m u n ity to be served."
Accordingly, where substantial anticom petitive effects may result from the
proposed merger, the C orporation is obliged under the A c t to balance such
anticom petitive effects w ith the benefits which are likely to arise o u t of the
merger and to approve the merger only where such benefits "c le a rly " outweigh
the foreseen anticom petitive effects.
The C orporation, in deciding th a t the application should be denied, found
"th a t the effect o f the 1970 acquisition o f stock control was 'substantially to
lessen co m p e titio n ' in the A lice banking market and th a t the postponed merger
w ould give permanence to th a t anticom petitive result in frustration of the
Bank Merger A c t" and concluded:
Since it is clear th a t a merger application subm itted in 1970 w ould have
been denied by the Corporation under guidelines similar to those enun­
ciated in the P hillipsburg case, there being present no overriding banking
*See Basis fo r C o rp o ra tio n de n ia l, 1974 F D IC Annual Report, 16 8-17 2. T h e c irc u m ­
stances s u rro u n d in g th is case and th e essential facts re lied up on by the C o rp o ra tio n in its
orig in a l decision are set fo r th in th a t sta te m e n t and w ill n o t be restated herein.




B A N K A B S O R P T IO N S A P P R O V E D B Y T H E C O R P O R A T IO N

factors or considerations o f
concluded th a t the present
encourage compliance w ith
determined in decided co u rt

115

convenience and need, the C orporation has
application should also be denied so as to
the standards of the Bank Merger A c t as
cases.

In seeking reconsideration of the C orporation's previous denial, the applica­
tion presents no new facts which cast doubt upon the determ ination w ith
respect to the substantially anticom petitive effects, either o f Mr. Erck's acquisi­
tion o f m ajo rity interest in the tw o then competing banks or of the merger in
question. However, new facts have been brought to the C orporation's attention
which indicate th a t such adverse com petitive consequences are clearly o u t­
weighed by the convenience and needs of the markets served.
Before turning to these facts, it is well to recall that, in evaluating the new
facts presented by the applicant, the C orporation is obligated not to view them
in isolation.
The test mandated by subsection 18(c)(5) requires a balancing of competing
public interests. The C orporation's decision th a t the substantially adverse
effects o f the merger were not "clearly outw eighed" by overriding banking
factors or considerations o f convenience and need was n o t intended to suggest
that no facts were presented at the tim e which argued fo r the merger. Indeed,
the case was a close one. Among the favorable factors which argued fo r ap­
proval of the merger at the tim e of its firs t consideration were the fa ct th a t the
Erck banks do not presently compete w ith one another, the fact th a t there is
no economic or legal basis fo r believing th a t Mr. Erck w ill divest him self o f his
controlling and m a jo rity interest in either o f the tw o institutions in the fo re ­
seeable future , and the fact th a t the resulting in s titu tio n w ill be able to com ­
pete more effectively w ith Alice National Bank, w hich is now the clearly
dom inant in stitu tio n in the Alice market. Thus, in order to grant the applica­
tion on reconsideration, the Corporation need not fin d th a t the new facts
presented by the applicant in themselves "clearly outw eigh" the substantially
anticom petitive effects of the merger, b u t instead must weigh against such
anticom petitive effects all o f the factors w hich favor the merger.
In the original basis fo r denial, the Corporation stated:
But outside banks today are like ly to view the offices o f Bank o f South
Texas and First National as being com ponent parts of one banking organ­
ization. Since no outside bank has attempted de novo en try since 1970,
the C orporation finds no reason to believe that the proposed merger
w ould enhance the prospects fo r de novo entry in the future.
Since th a t decision, the C orporation has been apprised o f the fact th a t the
consummation of the merger w ill probably lead to the relocation of Sandia
State Bank from Sandia to a site at or near the present site o f First National in
Alice, Texas. It is the judgm ent o f the Corporation that, notw ithstanding its
lim ited size and scope o f operations, Sandia State Bank w ill possess the requi­
site management skill and access to financial resources to enable it to become
an aggressive co m p e tito r in the Alice m a rk e t.** Thus, while the merger w ill
* * l t sho uld be no ted th a t, in a d d itio n to enhancing c o m p e titio n in the A lic e m a rke t, th e
re lo c a tio n o f Sandia State B ank w ill allo w the in s titu tio n to u tiliz e its ch a rte r in th e
p u b lic interest to a fa r greater e x te n t and m ay also have th e e ffe c t o f m in im iz in g a
p o te n tia l sup ervisory pro b le m . Sandia Bank's to ta l resources stoo d at $ 1 ,4 4 6 ,6 0 0 and
its to ta l IPC deposits at $ 9 6 8 ,7 0 0 , a ltho ugh the ba nk has been in o p e ra tio n since 19 12,




116

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

cement the anticom petitive 1970 stock purchase by Mr. Erck, it w ill at the
same tim e serve to facilitate the entry o f a fifth effective com petitive force into
the relevent market where, at present, there are only fo u r due to the fa ct o f
Mr. Erck's control over the tw o banks in q u e s tio n .***
It should be reiterated th a t in finding that approval of this merger is w ar­
ranted in light o f the special circumstances outlined above, the C orporation has
not receded from the im p o rta n t principle th a t underpins its original determ ina­
tion in this case. The purpose o f the Bank Merger A c t o f 1966 should no t be
thwarted through the purchase of stock o f tw o com peting institutions by an
individual or a group w ith the intent subsequently to merge the tw o in s titu ­
tions. Where such a pattern is present and substantial lessening o f com petition
found, the subsequent merger w ill not be approved absent clearly overriding
banking factors or considerations of convenience and needs.
Conclusion
Upon reconsideration, the C orporation has determined th a t the convenience
and needs o f the relevant banking market clearly outweigh the anticom petitive
impact o f the merger on The Bank of South Texas and First National Bank o f
Alice. A ccordingly, the C orporation's consent to the merger of the tw o in s titu ­
tions is hereby granted.

has been cha racte rized b y c o m p e te n t m anagem ent, and has an adjusted capital and
reserves to to ta l gross assets ra tio o f 3 2 .5 percent. T h e bank has o u tsta n d in g loans
a m o u n tin g to o n ly $ 5 4 8 ,7 0 0 ; a sizable p a rt o f its p o r tfo lio consists o f paper purchased
fro m the interests o f its president, R o b e rt R. M u lle n . (F in a n cia l data cite d w ith respect
to Sandia S tate Bank are as o f its last e x a m in a tio n re p o rt w h ic h was c o m p le te d on A p ril
22 , 1975.) These figures re fle c t th e sparse and d e c lin in g p o p u la tio n o f th e bank's tra de
area w h ic h stands at 25 0. In s h o rt, in its present lo c a tio n th e ba nk h a rd ly has s u ffic ie n t
business to sustain a b a nking o p e ra tio n and w o u ld n o t have th a t business b u t fo r th e
interests o f its d o m in a n t shareholder. B y c o n tra s t, th e A lic e m a rk e t in to w h ic h th e
Sandia b a n k w o u ld m ove w o u ld b e n e fit s ig n ific a n tly fro m th e in tro d u c tio n o f a new
c o m p e tito r. It sho uld also be noted th a t th e Sandia b a nk has been robbed on tw o
occasions and b u rglarized several o th e r tim es in recent m o n th s and is considered
especially v ulne rable in its present lo c a tio n . R e lo ca tio n fro m its present isolated site
w o u ld serve to m in im iz e this p a rtic u la r risk.
* * * A s stated in th e Basis fo r C o rp o ra tio n de n ia l: "T h e local ba nking m a rke t m o st relevant
to an eva lu a tio n o f th e proposed m erger can be a p p ro x im a te d b y th e c ity o f A lic e and
th a t area w ith in a radius o f a b o u t 15 m ile s .”




B A N K A B S O R P T IO N S A P P R O V E D B Y T H E C O R P O R A T IO N

117

Merger transactions were involved in the acquisitions o f banks by holding
companies in the fo llo w in g approvals in 1975. In each instance, the A tto rn e y
General's report stated th a t the proposed transaction w ould have no effect on
com petition. The C orporation's basis fo r approval in each case stated th a t the
proposed transaction w ould not, per se, change the com petitive structure o f
banking, nor affect the banking services th a t the (operating) bank has provided
in the past, and th a t all other factors required to be considered pertinent to the
application were favorably resolved.

Bank o f Virginia — Cavalier C ounty, Charlottesville, V irginia, in organiza­
tio n ; offices: 0; resources: 50 ($000); to merge w ith Cavalier — C ounty Bank,
C harlottesville; offices: 1; resources: 3,358 ($000). Approved: January 14.
N ew Jackson C ounty Bank, Edna, Texas, in organization; offices: 0; re­
sources: 50 ($000); to merge w ith and change title to Jackson C ounty State
Bank, Edna; offices: 1; resources: 14,214 ($000). Approved: February 27.
Marshall C ounty Bank, Arab, Alabama, in organization; offices: 0; re­
sources: 100 ($000); to merge w ith and change title to The Bank o f A rab,
Arab; offices: 1; resources: 14,483 ($000). Approved: A p ril 28.
The C ity Bank, Kent, Ohio; offices: 5; resources: 42,432 ($000); to merge
w ith The K e nt Bank, Kent, in organization; offices: 0; resources: 1,800 ($000).
A pproved: May 13.
B u rne t Road State Bank, A ustin, Texas, in organization; offices: 0; re­
sources: 200 ($000); to merge w ith and change title to N o rth A u stin State
Bank; offices: 1; resources: 43,125 ($000). Approved: May 22.
F B T Bank, Frankenm uth, Michigan, in organization; offices: 0; resources:
130 ($000); to consolidate w ith and change title to Frankenm uth Bank &
Trust, Frankenm uth; offices: 13; resources: 146,659 ($000). Approved: June
23.
Bay C ity Bank & Trust Company, Bay C ity, Michigan; offices: 7; resources:
73,076 ($000); to consolidate w ith Manufacturers Bank o f Bay C ity, Bay C ity,
in organization; offices: 0; resources: 120 ($000). Approved: July 28.
M D B Bank, Y ellow Springs, Ohio, in organization; offices: 0; resources: 312
($ 0 0 0 ); to acquire the assets o f and assume the deposit liabilities o f and change
title to M iam i D eposit Bank, Y ellow Springs; offices: 2; resources: 24,795
($000). A pproved: August 21.
N o rth Laurent State Bank, V icto ria , Texas, in organization; offices: 0; re­
sources: 100 ($000); to merge w ith and change title to Am erican Bank o f
Commerce, V icto ria ; offices: 1; resources: 72,448 ($000). Approved: August
25.
B ro o k fie ld State Bank, Houston, Texas, in organization; offices: 0; re­
sources: 200 ($000); to merge w ith and change title to Bank o f Alm eda,
Houston; offices: 1; resources: 26,850 ($000). A pproved: September 24.
Twin C ity State Bank, Texarkana, Texas, in organization; offices: 0; re­
sources: 100 ($000); to merge w ith and change title to Twin C ity Bank,
Texarkana; offices: 1; resources: 5,575 ($000). Approved: October 6 .



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

The Citizens Bank & Trust Company, Wadsworth, Ohio; offices: 1; re­
sources: 20,714 ($000); to merge w ith The Wadsworth Bank, W adsworth, in
organization; offices: 0; resources: 0 ($000). Approved: October 15.
Citizens State Bank, Crane, Texas, in organization; offices: 0; resources: 50
($000); to merge w ith and change title to F irs t State Bank, Crane; offices: 1;
resources: 8,527 ($000). Approved: October 15.
C ity Bank o f H opewell, Hopewell, V irginia, in organization; offices: 0; re­
sources: 100 ($000); to merge w ith and change title to Cavalier Central Bank &
Trust Company, Hopewell; offices: 2; resources: 5,946 ($000). A pproved:
October 31.




119

BANK ABSORPTIONS DENIED BY THE CORPORATION

Re so u rce s
(in
th o u sa n d s
o f d o lla rs)

Chester Bank
Chester, C onnecticut

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

T o be
o perated

3,865

1

1

16,803

1

to acquire the assets and assume
the deposit liabilities of

Chester Savings Bank
Chester

Summary report by A tto rn e y General, January 15, 1975
Trust Company and Savings Bank are the only banks located in Chester, a
small co m m un ity of about 3,000 located in south-central C onnecticut, m idway
between New Haven and New London. Nine other commercial and savings
bank offices exist in nearby towns w ith in 8 miles o f Chester.
Trust Company and Savings Bank are not now in significant com petition
w ith each other. Savings Bank accepts only tim e and savings accounts and
makes m ostly real estate loans, while Trust Company is no t significantly en­
gaged in either a ctivity. While both banks could expand the services they
provide, bringing them into greater com petition w ith each other, this does not
appear to be like ly given the small size o f the banks and their history o f
common officers and directors. Further, the transaction w ould eliminate the
home office protection which under C onnecticut law precludes outside savings
banks from branching in to Chester.
A ccordingly, we conclude th a t the effect o f the transaction on com petition
would not be adverse.
Basis fo r C orporation denial, June 30, 1975
Chester Bank, Chester, Connecticut, an insured State nonmember bank w ith
total resources o f $3,865,000 and to ta l IPC deposits o f $2,579,000, has
applied, pursuant to section 18(c) and other provisions o f the Federal Deposit
Insurance A c t fo r the C orporation's p rio r consent to acquire the assets of and
assume lia b ility to pay deposits made in Chester Savings Bank, Chester,
Connecticut, an insured mutual savings bank having to ta l resources o f
$16,803,000 and total IPC deposits o f $15,433,000. As part o f the overall
transaction, the remaining net w o rth of Chester Savings Bank w ould be dis­
tributed to its depositors o f record date either as stock in the resulting bank or
as cash, at the depositors' option. The resulting bank w ould continue to oper­
ate from the jo in t quarters presently occupied by both banks.
Chester Savings Bank has operated one office ever since its establishment in
1871 in the tow n o f Chester, Middlesex C ounty, in southern C onnecticut
between New Haven and New London. Chester Bank, fo rm e rly The Chester
Trust Company, was organized in 1914 by individuals connected w ith Chester
Savings Bank, and the tw o banks have been under essentially the same manage­
ment ever since, sharing a common lobby at their sole location. The tw o banks



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

together o ffe r a broad range o f banking services to the people o f Chester (1970
population 2,982) and the surrounding area, but they do no t compete w ith
each other. Chester Bank is among the State's smallest commercial banks, w hile
Chester Savings Bank is among the State's smallest mutual savings banks.
Irrespective of the merits o f this proposal under the com petitive and bank­
ing factors norm ally considered under the Bank Merger A c t, a denial seems
required by the terms o f Public Law 93-495, w hich became effective October
28, 1974, almost simultaneously w ith the filin g o f this application w ith the
Corporation and several months after many prelim inary steps had been taken
by both banks. A section o f th a t new law lim its the C orporation's power to
approve a transaction o f this type if the practical effect of the transaction
w ould enable a bank like Chester Savings Bank to convert fro m the mutual to
the stock form o f organization. The relevant po rtio n o f the 1974 legislation
reads as follow s:
. . . U ntil June 30, 1976, the responsible agency shall not grant any
approval required by law which has the practical effect o f perm itting a
conversion fro m the mutual to the stock fo rm o f organization, including
approval of any application pending on the date o f enactment of this
subsection, except th a t this sentence shall n o t be deemed to lim it n o w o r
hereafter the a u th o rity o f the responsible agency to grant approvals in
cases where the responsible agency finds th a t i t m ust act in order to
m aintain the safety, soundness, and s ta b ility o f an insured bank [em ­
phasis supplied]. The responsible agency may by rule, regulation, or
otherwise and under such civil penalties (which shall be cumulative to
any other remedies) as it may prescribe take whatever action it deems
necessary or appropriate to im plem ent or enforce this subsection. (Public
Law 93-495, title I, section 106; 12 U.S.C. 1828(c)(10).)
The question becomes, then, whether the C orporation "m u s t act in order to
maintain the safety, soundness, and sta b ility o f an insured b a n k." The jo in t
report o f the conference com m ittee th a t considered this legislation contains
only one reference to the exception allowed fro m the total m oratorium o th e r­
wise imposed:
In considering applications, the responsible agency shall take cognizance
o f any undue d iffic u ltie s like ly to be encountered by financial in s titu ­
tions in very small com m unities, such as those w ith populations under
4,000, in their efforts to com ply w ith State statutes p ro h ib itin g in te r­
locking directorates o f financial institutions. (House R eport No.
93-1429, 93d Cong., 2d sess. 34 (1974).)
The Corporation believes, however, that neither Chester Savings Bank nor
Chester Bank is like ly to encounter difficu ltie s so serious if this application is
denied tha t the safety, soundness, or sta b ility o f either w ill be endangered. A t
worst, there may be some customer skepticism th a t the real reason fo r this
denial is the one stated, th a t is, to carry o u t the apparent intent of a new
provision o f Federal law. In all pro b a b ility, however, the tw o banks w ill con­
tinue to operate between now and June 30, 1976, exactly as they have fo r
almost 60 years and as they are authorized to do by a "g ra n d fa th e r" provision
of the 1973 C onnecticut law which prohibits interlocking managements and.
directorates between commercial banks and mutual institutions.
In any event, both banks have a history o f conservative operations and their
asset structures presently contain a m inim al am ount o f risk. Chester Savings



B A N K A B S O R P T IO N S D E N IE D B Y T H E C O R P O R A T IO N

121

Bank has had good deposit grow th in recent years, while the commercial bank's
total deposits have grown more slowly. Both banks have satisfactory capital
ratios and each has enjoyed a solid earnings performance in the last 3 years.
Neither bank is even rem otely a "p ro b le m " bank.
Under the circumstances, approval o f the application does n o t appear neces­
sary to m aintain the safety, soundness, or sta b ility o f either o f the tw o banks
involved. Compliance on the part o f these tw o banks w ith the C onnecticut law
prohibiting interlocking directors of financial institutions is n o t required by the
very terms o f th a t law itself. A ccordingly, under Public Law 9 3 4 9 5 , the a p pli­
cation cannot be approved and is hereby denied.

R e s o u rc e s
( in
th o u s a n d s
o f d o lla r s

M onadnock National Bank
Jaffrey, New Hampshire
(to convert to State charter)

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

4,613

1

19,714

1

T o be
o p e ra te d

1

to acquire the assets and assume
the deposit liabilities o f

Monadnock Savings Bank
Jaffrey

Summary report by A tto rn e y General, March 27, 1975
MNB and MSB are the only banks located in Jaffrey, a small co m m u n ity o f
about 3,400, located in southwestern New Hampshire. These banks are subject
to some com petitio n fro m three banks located in Peterborough, located about
6 miles away. Six other banking in stitutions are located between 10 and 16
miles from Jaffrey.
MNB and MSB are not now in significant com petition w ith each other. MSB
accepts only tim e and savings accounts and makes m ostly real estate loans,
while MNB is not significantly engaged in either activity. New Hampshire law
requires these banks to term inate their interlocking o ffice r and director rela­
tionships by July 1 , 1975. Thus, absent this transaction, the banks could be
expected to compete w ith each other in the future. In view o f the small size o f
MNB and o f the co m m u n ity o f Jaffrey, however, the effect of this transaction
on com petition w ould not be significantly adverse.
Basis fo r C orporation denial, June 30, 1975
Monadnock National Bank, Jaffrey, New Hampshire, w ith to ta l resources o f
$4,613,000 and total IPC deposits o f $3,248,000, has applied, pursuant to
section 18(c) and other provisions of the Federal Deposit Insurance A ct, fo r
the C orporation's prior consent to acquire the assets of and assume lia b ility to
pay deposits made in Monadnock Savings Bank, Jaffrey, New Hampshire, an
insured mutual savings bank having total resources o f $19,714,000 and total



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

122

IPC deposits of $17,728,000. Incident to the proposed transaction, the 4,000
par $5 shares o f com m on stock o f Monadnock National Bank presently owned
by Monadnock Savings Bank w ould be retired. Monadnock National Bank,
prior to consumm ation o f the proposed transaction, would convert to a State
nonmember insured bank under the title "T he Monadnock Bank." The result­
ing bank w ould operate from the sole location in which the tw o banks pres­
ently share quarters.
The New Hampshire legislature, during its 1971 session, enacted RSA
384:5-a, which provides, in relevant part, that " [ n ] o person shall at the same
tim e serve as a trustee, d ire cto r or o ffice r o f more than one o f . . . ." six
specified types o f financial institutions, including commercial banks and
mutual savings banks. This law becomes effective in the case of the tw o Monad­
nock banks on July 1, 1975. The subject transaction is being proposed as a
means to enable the banks to com ply w ith this State law.
C om petition. The proposed transaction does n o t squarely f i t p rio r Corpora­
tion precedents involving proposed acquisitions of New Hampshire savings
banks by affiliated commercial banks where both banks were under a statutory
d u ty to break up interlocking managements.* A lthough the tw o banks here
involved have shared offices since 1869 in the small com m unity o f Jaffrey
(1970 population 3,353), they draw th e ir banking business from a larger and
more heavily populated area o f about 23,000 persons w ith in a radius o f 10 to
12 miles o f Jaffrey, including Peterborough, New Hampshire, and Winchendon,
Massachusetts. While median income levels in this local banking m arket tend to
be somewhat below the statewide figures, there was substantial growth in
population between 1960 and 1970, unlike the situation in the sparsely popu­
lated, economically depressed sections o f Coos C ounty where the tw o p rio r
New Hampshire applications originated. Total IPC deposits in the Jaffrey mar­
ket aggregated more than $112.5 m illio n as o f June 30, 1974, compared to
$58.0 m illion in the larger of the tw o Coos C ounty markets recently reviewed
by the C orporation.
Assuming, however, w ith o u t deciding, th a t the Corporation w ould have
approved the proposed transaction based on its normal analysis o f com petitive
and banking factors under the Bank Merger A ct, a denial nevertheless seems
required under an amendment to th a t A c t which became effective October 28,
1974. This provision, w hich lim its the FDIC's power to approve a transaction
the practical e ffect o f w hich is to enable a bank like Monadnock Savings Bank
to convert from the mutual to the stock fo rm o f organization, reads in relevant
part:
. . . U ntil June 30, 1976, the responsible agency shall n o t grant any ap­
proval required by law w hich has the practical effect of perm itting a
conversion fro m the mutual to the stock fo rm o f organization, including
approval of any application pending on the date of enactment of this
subsection, except th a t this sentence shall n o t be deemed to lim it no w o r
hereafter the a u th o rity o f the responsible agency to grant approvals in
cases where the responsible agency finds th a t i t m ust act in order to

*See Basis fo r C o rp o ra tio n approval o f th e a c q u is itio n o f C ity Savings B ank o f B e rlin b y
B erlin C ity N ation al B ank, 1974 F D IC Annual Report, 4 5 -4 8 , and Basis fo r C o rp o ra tio n
approval o f th e m erger o f The C o le b ro o k N ation al Bank w ith C o le b ro o k G u a ra n ty Sav­
ings B ank, 1974 F D IC Annual Report, 14 6-14 8.




B A N K A B S O R P T IO N S D E N IE D B Y T H E C O R P O R A T IO N

123

m aintain the safety, soundness, and s ta b ility o f an insured bank
[emphasis su p p lie d ]. The responsible agency may by rule, regulation, or
otherwise and under such civil penalties (which shall be cum ulative to
any other remedies) as it may prescribe take whatever action it deems
necessary or appropriate to im plem ent or enforce this subsection. (Public
Law 93-495, title I, section 106).
The question becomes, then, whether the C orporation "m u s t act in order to
maintain the safety, soundness, and sta b ility o f an insured b a n k." The jo in t
report of the conference com m ittee th a t considered this legislation contains
only one reference to the exception allowed from the total m oratorium o th e r­
wise imposed:
In considering applications, the responsible agency shall take cognizance
o f any undue d iffic u ltie s like ly to be encountered by financial in s titu ­
tions in very small comm unities, such as those w ith populations under
4,000 in their efforts to com ply w ith State statutes p ro h ib itin g in te r­
lockin g directorates o f financial institutions. (House Report No.
93-1429, 93d Cong., 2d sess. 34 (1974).)
The C orporation believes, however, th a t neither Monadnock Savings Bank
nor Monadnock National Bank is likely to encounter d iffic u ltie s so serious th a t
the safety, soundness, or sta b ility of either w ill be endangered, if they are
forced after July 1 to operate as independent institutions in order to com ply
w ith the New Hampshire statute p ro h ib itin g interlocking managements.
Both banks have a history of conservative operations and their asset struc­
tures presently contain a minim al amount of risk. Monadnock Savings Bank has
had good deposit grow th in recent years, w hile the commercial bank's total
deposits have fluctuated in a narrow range. Both banks have relatively high
capital ratios and each has enjoyed a solid earnings performance in the last 3
years. Neither bank is even rem otely a "p ro b le m " bank.
O nly three director-employees presently serve both banks, w ith the result
that minim al additional management recruitm ent w ill be necessary to com ply
w ith the statutory mandate. Even if a total o f three additional managementlevel persons must be hired as the applicants claim (the C orporation believes
only one or tw o may actually be necessary), Monadnock Savings Bank had
$272,000 in pretax earnings after interest payments to depositors in 1974
w ith in which it could have absorbed its share of such additional salary expense,
while Monadnock National Bank had $72,000 on a comparable basis.
Separate quarters as well as separate management m ight appear to place a
financial burden on the Monadnock commercial bank, but the experience o f
most New Hampshire commercial banks operated in c o n fo rm ity w ith the New
Hampshire law on interlocks indicates th a t this could be resolved at far less
cost than the applicants claim. That experience, moreover, along w ith the
experience o f thousands o f other small commercial banks in the United States
which operate in small comm unities, indicates that grow th and p ro fita b ility
can be maintained despite small bank size. Indeed, the Monadnock commercial
bank may experience greater growth and p ro fita b ility as an independent e n tity
than it has to date as an a ffiliate o f Monadnock Savings Bank.
Approval of this application, therefore, does no t appear necessary to m ain­
tain the safety, soundness, or sta b ility of either of the tw o Monadnock banks
involved. The application, accordingly, is denied.



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

124

R e s o u rc e s
( in
th o u s a n d s
o f d o ll a r s )

Southern Oregon State Bank
Grants Pass, Oregon

B a n k in g O f f ic e s
In
o p e r a t io n

41,724

2

10,168

1

T o be
o p e ra te d

3

to merge with

Valley o f the Rogue Bank
Rogue River

Summary report by A tto rn e y General, September 15, 1975
Bank's Rogue River office is located about 9 miles east o f A pplicant's
Grants Pass offices, w ith no com petitive alternatives in the intervening area.
The parties do, however, encounter substantial com petition from Oregon's
large commercial banking in stitutions which maintain offices in both Josephine
and Jackson Counties.
We conclude th a t the proposed merger w ill elim inate some existing com peti­
tion and slightly increase concentration in commercial banking in the Grants
Pass-Rogue River area.

Basis fo r C orporation denial, November 28, 1975
Southern Oregon State Bank, Grants Pass, Oregon ("S outhern B ank"), a
State nonmember insured bank w ith total resources o f $41,724,000 and total
IPC deposits o f $31,309,000, has applied, pursuant to section 18(c) and other
provisions o f the Federal Deposit Insurance A c t, fo r the C orporation's p rio r
consent to merge w ith Valley of the Rogue Bank, Rogue River, Oregon
("V a lle y B ank"), w ith to ta l resources o f $10,168,000 and to ta l IPC deposits o f
$7,764,000, The banks w ould merge under the charter and title o f Southern
Bank. The present main office o f Valley Bank would become a branch o f the
resultant bank, which w ould thus have a to ta l o f three offices.
C om petition. Grants Pass (1970 population 12,455, up 23.1 percent since
1960) is located in the Rogue River Valley in southwest Oregon about 30 miles
north o f the C alifornia border. The c ity is an im p o rta n t logging and lumbering
center and is a marketing center fo r a variety o f agricultural products. L ig h t
manufacturing is also gaining in importance, and in recent years the to u rist
trade has enjoyed good grow th. Rogue River (population 841) is prim a rily a
bedroom com m u n ity fo r Grants Pass, and the only industry in the tow n is a
sawmill em ploying about 75 people. Interstate Highway 5 connects Grants Pass
w ith Eugene and Portland to the north and Rogue River and Medford to the
east and south.
The local banking market in which the com petitive effects of the proposed
merger w ou ld be most direct and immediate may be approxim ated by the c ity
o f Grants Pass and its surrounding com m unities in Josephine C ounty, plus the
Evans Valley census division o f Jackson C ounty w hich includes the com m un­
ities o f Rogue River and Gold H ill. Since the d e fin itio n of the local market is
critical in the evaluation o f this proposal, some elaboration is desirable. Rogue
River is only about 8 miles east o f Grants Pass along I nterstate 5. Gold H ill is 5



B A N K A B S O R P T IO N S D E N IE D B Y T H E C O R P O R A T IO N

125

miles east o f Rogue River, and about midway between Grants Pass and Med­
ford. While mountainous terrain surrounds much of the Rogue River Valley,
these com m unities are quite accessible to each other. Local bankers were in
agreement, however, th a t persons in and around Rogue River and Gold Hill
would be drawn to Grants Pass, rather than M edford, in the normal course o f
em ploym ent and shopping. The only significant .bank in the Medford area
which is not also in the market delineated above is The Oregon Bank, thus
lim iting any incentive fo r people in Grants Pass and Rogue River to seek ou t
banking alternatives in the Medford area. The applicants themselves make no
claim th a t M edford should be included in the relevant market and concede th a t
the area served by Valley Bank is w h o lly w ith in a larger area served by S outh­
ern Bank. Some co n firm ation o f the natural pull o f Rogue River residents to
Grants Pass is found in the action o f Valley Bank in applying fo r its firs t
branch in Fruitdale, about 1 mile south o f Southern Bank's main office.
The market so defined contains about 37,000 people, heavily concentrated
in and around Grants Pass. A t the present tim e, five commercial banks, which
have approxim ately $95 m illio n in total deposits, operate six offices there.
Southern Bank has the largest share o f the m arket w ith 35.0 percent o f total
commercial bank deposits while Valley Bank ranks fo u rth w ith 9.1 percent.
The second (31.0 percent) and th ird (24.2 percent) largest shares o f the local
market are held by branches, in Grants Pass, of the tw o largest commercial
banks in the State, both based in Portland. The remaining 0.7 percent o f the
market's total commercial bank deposits (which are less than $ 1 m illio n ) is
held by the Gold Hill branch o f Crater National Bank, M edford. Southern Bank
has developed its share o f this local market over the past 20 years, while Valley
Bank has been in existence only since 1968. Both banks have been strong and
successful com petitors in the market against the tw o big statewide banks. T heir
proposed merger is clearly no t essential to th e ir being able to compete against
First National Bank o f Oregon or United States National Bank o f Oregon and
would in any event eliminate the substantial com petition which exists today
between the tw o o f them.
The application concedes th a t "nearly all deposits and loans o f each bank
originate in the service area of the other bank." It also estimates th a t 20
percent o f Valley Bank's deposits and 30 percent o f its loans originate from
individuals, partnerships, and corporations having a Grants Pass address.
Besides elim inating existing com petition, the proposed merger w ould sub­
stantially increase the concentration o f banking resources in the local market
and reduce by one the lim ited number of effective com petitors available to the
37,000 people there. In view o f Valley Bank's application fo r a branch in
Fruitdale, and its acquisition o f property fo r th a t purpose, it is highly probable
tha t the proposed merger w ould also eliminate increased com petition between
Southern Bank and Valley Bank in the future. Valley Bank, in fact, projects a
deposit in flo w o f more than $3 m illio n at its new o ffice w ith in the firs t 3 years
after it is established. Moreover, although median income levels are below the
State average, the C orporation's staff has noted th a t the population served by
each commercial bank office in the market is relatively high at 6,166 persons
per office.
Although the population and aggregate deposits o f the relevant geographic
market in and around Grants Pass are small compared to the markets involved
in most of the ju d ic ia lly decided bank merger cases, the Grants Pass-Rogue



126

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

River market appears to constitute an econom ically significant "section o f the
c o u n try " whose center is an incorporated c ity o f more than 1 2 ,0 0 0 persons.*
T hat being so, it w ould appear th a t the merger o f Southern Bank and Valley
Bank w ould be a clear violation o f section 7 of the Clayton A c t under the
criteria established in U nited States v. P hillipsburg N ational Bank, 399 U.S.
350 (1970). In th a t case, seven commercial banks were found to be com ­
petitors in the relevant geographic market. Here, there are five. The banks there
seeking to merge ranked th ird and fifth largest among the seven, the larger
having 13.7 percent o f the total commercial bank deposits in the market and
the tw o banks together having 23.4 percent of such deposits. Here, Southern
Bank already has the largest share o f the market w ith 35.0 percent of the
market's total commercial bank deposits, while Valley Bank has 9.1 percent o f
such deposits, ranking fo u rth in this respect. There, the merger increased the
share o f deposits held by the three largest banks in the m arket from 70 percent
to 80 percent. Here, the merger w ould increase the comparable percentage
from 90.2 percent to 99.3 percent.
Under all o f these adverse circumstances, the C orporation finds th a t the
effect of the proposed merger w ould be "substantially to lessen c o m p e titio n "
in the Grants Pass-Rogue River banking market.
Convenience and Needs o f the C om m unity to be Served. The proposed
merger w ould result in no significant change in banking services now available
to customers o f either bank except that Valley Bank customers w ould be
offered Master Charge credit service. Customers o f both banks w ould have an
increased lending lim it at their service, bu t an increase in this lim it from
$375,000 to about $500,000 fo r Southern Bank's customers and from
$120,000 to the same figure fo r Valley Bank's customers is n o t su fficie n t to
outweigh the anticom petitive aspects o f the proposal previously discussed. The
handful o f customers w ith larger borrowing needs w ould still have to go to one
of the tw o com peting national banks w hich both have over $ 2 b illio n in to ta l
assets. Both of these banks, moreover, also o ffe r a credit card service to appro­
priate customers, so th a t benefit is also available in the m arket today fo r those
customers w ho desire the service and can q u a lify fo r it.
Considerations o f convenience and needs, therefore, add no significant
weight tow ard approval o f the proposed merger.
Financial and Managerial Resources; Future Prospects. Both banks have
operated satisfactorily fo r years, and their asset condition is subject to only
normal criticism . No serious management problems are evident, and both banks
have enjoyed substantial deposit growth and good earnings. There are, in short,
no "banking fa cto rs" present which m ight necessitate approval o f the merger
proposed.
Conclusion. Since there are no overriding banking factors or considerations
of convenience and needs, the C orporation has concluded th a t the application
must be denied in light o f the findings on the com petitive factors.

*C f United States v. County Nat'l. Bank of Bennington, 3 3 0 F. Supp. 155 (D . V t. 1 9 7 1 ),
3 3 9 F. Supp. 85 (D . V t. 19 7 2 ).




r




LEGISLATION AND REGULATIONS
PARTTHREE




129

FEDERAL LEGISLATION - 1975
Depository Institutions Amendments of 1975 (Public Law
94-200, approved December 31,1975).
Title I of this legislation extended for 14 months (until March 1,
1977) the flexible authority of the Federal Reserve, the FDIC, and
the Federal Home Loan Bank Board to set interest rate ceilings on
time and savings deposits. The legislation also provided that any
interest rate differential between insured commercial banks and
th rift institutions that was in effect on December 10, 1975 may not
be eliminated or reduced w ithout the approval of both Houses of
Congress by concurrent resolution.
Title II extended the life of the National Commission on Elec­
tronic Fund Transfers so as to give it two full years in which to
operate, as originally intended by the Congress when it established
the Commission by Public Law 93-495.
Title III, the "Home Mortgage Disclosure Act of 1975," requires
any depository institution located in a standard metropolitan statis­
tical area which makes loans secured by residential real property to
disclose mortgage lending information by census tract where avail­
able at a reasonable cost as determined by the Federal Reserve
(otherwise by zip code), and to make such information available to
the public at the main office and at least one branch of the institu­
tion. The Federal Reserve may exempt from the disclosure pro­
visions State-chartered institutions in States with mortgage dis­
closure laws substantially similar to those in the Act. Also
exempted is any institution with assets of $10 million or less at the
end of its last fiscal year. The provisions in title III become effective
180 days after their enactment and expire 4 years after such effec­
tive date. Under the enforcement provisions of the Act, the FDIC
has enforcement authority not only with respect to State non­
member insured banks which it regularly examines, but also with
respect to any nonfederally insured "commercial bank, savings
bank, savings and loan association, building and loan association, or
homestead association (including cooperative banks) or credit union
which makes federally related mortgage loans . . . ."
Securities Acts Amendments of 1975 (Public Law 94-29, ap­
proved June 4, 1975). There are four main subject areas of this
legislation which would bring certain activities of federally insured
banks within the regulatory jurisdiction of the Securities and Ex­
change Commission: regulation of clearing agencies and transfer
agents, regulation of municipal securities dealers, institutional
investor reporting requirements, and reporting requirements with
respect to lost or stolen securities.
The Act provides for Federal regulation of the securities handling
process, including clearing agencies, depositories, and transfer



130

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

agents, with a view to facilitating the establishment of a national
system for the prompt and accurate clearance and settlement of
securities transactions. Under the legislation, the SEC has general
rulemaking and policy oversight responsibility for all clearing agen­
cies and transfer agents and, with respect to such entities that are
banks, the respective bank regulatory agencies have primary ad­
ministrative and enforcement jurisdiction over the banks they regu­
larly examine. The SEC also has limited examination authority over
registered bank clearing agencies provided the Commission gives
prior notice to and consults with the appropriate Federal bank
regulatory agency concerning the feasibility and desirability of
coordinating, to the maximum extent practicable, the Commission's
examination with any examination proposed or planned by the
bank regulatory agency.
In addition, the Act amends the Securities Exchange Act of 1934
to create a Federal mechanism for the regulation of persons trading
in municipal securities, including banks or subsidiaries, and depart­
ments or divisions thereof. The Act establishes a pervasive regula­
tory framework involving registration, rulemaking, examination,
and enforcement. Initial rulemaking power is conferred upon a new
self-regulatory agency called the Municipal Securities Rulemaking
Board, and certain examination functions and enforcement powers
with respect to banks are vested in the Federal bank regulatory
agencies. However, predominant regulatory and supervisory author­
ity over all aspects of municipal securities operations rests u lti­
mately w ith the SEC, even where the regulated person is a federally
insured bank or a subentity thereof. Thus, registration is exclusively
with the SEC; rules proposed by the Municipal Securities Rulemaking Board would require SEC approval before adoption, and the
SEC would retain residual rulemaking power on its own initiative.
In addition, the SEC can make examinations of or bring enforce­
ment actions against any municipal securities dealer. Although be­
fore exercising its examination and enforcement power over bank
dealers or subentities the SEC must notify and consult with the
appropriate Federal bank regulatory agency, the Act expressly pro­
vides that this requirement will not restrict the SEC's full power in
such matters.
As to institutional investor reporting requirements, the Act adds
a new subsection to section 13 of the Securities Exchange Act of
1934. It empowers the SEC to require any investment manager
(including a bank trust department) with a portfolio of equity
securities registered under the Act having an aggregate fair market
value of at least $100 million to report periodically to the Com­
mission the composition of its portfolio, and such additional
matters as its holdings of other securities and any transaction in­
volving equity securities so registered with a market value of at least




R U L E S A N D R E G U L A T IO N S O F T H E C O R P O R A T IO N

131

$500,000. In addition, the Act authorizes the SEC to require re­
porting of portfolios of $10 million or more and particular transac­
tions of less than $500,000. Institutional investment managers that
are FDIC-insured banks file copies of all reports with the appro­
priate regulatory agency.
Finally, the Act adds a new paragraph (f) to section 17 of the
Securities Exchange Act of 1934 which authorizes the establish­
ment by the SEC of a data bank to receive information relating to
missing, lost, counterfeit, or stolen securities. It further requires
certain persons, including insured banks, to report such information
to the SEC and to make inquiry as generally directed by the SEC to
determine whether securities transactions in which the bank is
participating involve such securities. The SEC can delegate such
authority to the appropriate Federal bank regulatory agencies
insofar as insured banks are concerned.

RULES AND REGULATIONS AND STATEMENTS
OF GENERAL POLICY
In the following general areas the Corporation either amended or
added to its rules and regulations during 1975.
Disclosure:
a. Part 304 (12 C.F.R. 304) was amended to require all insured
State nonmember banks to complete and submit to the Corporation
periodic reports, as of June 30 of each year, containing information
on the amount of deposits and the number of deposit accounts in
various categories for the bank as a whole and for each authorized
office.
b. Part 335 (12 C.F.R. 335) was substantially revised in ac­
cordance with the recent amendment to section 12(i) of the Secur­
ities Exchange Act of 1934, which required the Federal Deposit
Insurance Corporation and the other Federal bank regulatory agen­
cies to issue rules and regulations that are "substantially similar" to
the rules and regulations of the Securities and Exchange Com­
mission promulgated under sections 12, 13, 14(a), 14(b), 14(d),
14(f), and 16 of the 1934 Act. The substantial revisions relate,
among other things, to the disclosure requirements set forth in the
registration, reporting, and proxy provisions of the part.
c. Pursuant to the Securities Exchange Act of 1934 (15 U.S.C.
78q), the Corporation added part 341 (12 C.F.R. 341) which out­
lines numerous registration requirements for State nonmember
banks
 acting as securities transfer agents.


132

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

Interest rates:
a. Section 329.4 (12 C.F.R. 329.4) was amended to suspend
regulations involving the payment of interest on certain time de­
posits in insured State nonmember banks in North Dakota.
b. Sections 329.6 and 329.7 (12 C.F.R. 329.6 and 329.7) were
amended to provide that the $1,000 minimum amount required for
4- and 6-year time deposits is removed for Individual Retirement
Accounts (IRA).
Deposits:
a. Section 329.1 (12 C.F.R. 329.1) was amended to permit part­
nerships, corporations, associations, or other profit-making organi­
zations to maintain savings deposits in insured State nonmember
commercial banks up to a maximum of $150,000 per depositor in
any one such bank. Also, this section was amended to provide that
pubjic units and partnerships, corporations, associations, or other
profit-making organizations may not maintain NOW accounts in
insured nonmember banks. However, this prohibition does not
apply to public units operated primarily for charitable, educational,
or other similar purposes.
b. Section 329.5 (12 C.F.R. 329.5) was revised to allow insured
State nonmember banks to permit direct withdrawals from savings
accounts to make payments or credit transfers to third parties re­
gardless of the nature of the depositor's obligation to that third
party.
c. Section 329.4 (12 C.F.R. 329.4) was amended to conform
with portions of the Employees Retirement Income Security Act of
1974 (ERISA) dealing with Individual Retirement Accounts (IRA).
It provides for no penalty for withdrawal prior to maturity of IRAs
qualified under the Internal Revenue Code if the IRA holder is
disabled or has reached the age of 59 1/2. Also, there will be no
penalty for early withdrawal o f any time deposit before m aturity if
the owner dies.
Freedom o f Information Act — Privacy Act:
a. Section 309.1 (12 C.F.R. 309.1) was extensively revised and
amended to implement the release and disclosure provisions of the
Freedom of Information Act.
b. Section 310 (12 C.F.R. 310) was added to implement pro­
visions of the Privacy Act governing the access of an individual to
systems of records maintained by the Corporation on that individ­
ual, and prohibiting the Corporation from releasing such informa­
tion w ithout the individual's consent. In addition, it outlines pro­
cedures for individuals desiring to challenge and amend such
information maintained in the Corporation's system of records. In
addition,
this section governs the release to Federal and State



R U L E S A N D R E G U L A T IO N S OF T H E C O R P O R A T IO N

133

authorities of Corporation information relating to bank irregular­
ities believed to constitute violations of the law.
Administration:
a. Part 303 (12 C.F.R. 303) was amended to provide for internal
delegations of authority to the Director of the Division of Bank
Supervision and to Regional Directors of the Corporation.
b. Part 308 (12 C.F.R. 308) was added to provide rules o f pro­
cedure applicable to section 10(c) o f the Federal Deposit Insurance
Act involving examinations of witnesses, administration of oaths,
preservation of testimony, and issuance of subpoenas in connection
with special examinations of insured State nonmember banks or
their affiliates.
c. Part 336 (12 C.F.R. 336) was amended to provide guidelines
for Corporation employee conduct and responsibility in the private
use and accumulation of Corporation information.
Miscellaneous:
Section 339.2 (12 C.F.R. 339.2) was amended to implement
an amendment to the Federal Flood Disaster Protection Act in­
volving loans to insured State nonmember banks in areas having
special flood hazards.
STATEMENT OF POLICY
In accordance with a statement by the Board of Governors of the
Federal Reserve System, the Board of Directors of the Federal De­
posit Insurance Corporation reiterated a longstanding FDIC policy
allowing the withdrawal of funds from a savings account upon a
depositor's order transmitted by means of a telephone or other
communications device. It is expected that insured nonmember
banks will implement proper security procedures to insure the
safety of this activity.










STATISTICS OF BANKS
AND DEPOSIT INSURANCE
PART FOUR
J

NUMBER OF BANKS A N D BRANCHES
Table 101. Changes in number and classification o f banks and branches in the U nited States (States and
o ther areas) during 1975
Table 102. Changes in number o f commercial banks and branches in the U nited States (States and other
areas) during 1975, by State
Table 103. N um ber o f banking offices in the United States (States and other areas), December 31, 1975

Grouped according to insurance status and class o f bank, and by State or area and type o f
office
Table 104. N um ber and deposits o f all commercial and m utual savings banks (States and other areas),
December 31, 1975

Banks grouped by class and deposit size
Table 105. N um ber and deposits o f all commercial banks in the U nited States (States and other areas),
December 31, 1975




Banks grouped by deposit size and State

137




BRANCHES

Institutions excluded. In s titu tio n s in th e fo llo w in g categories are e x ­
clu d e d , th o u g h such in s titu tio n s m ay p e rfo rm m any o f the same fu n c tio n s as
c o m m e rcia l and savings banks:

AND

Mutual savings banks in c lu d e all banks o p eratin g under S tate b a n kin g
codes a p p ly in g to m u tu a l savings banks.

OF BANKS

Nondeposit trust companies in c lu d e in s titu tio n s op eratin g under tru s t
c o m p a n y cha rters w h ic h are n o t re g u la rly engaged in de posit banking b u t are
engaged in fid u c ia r y business o th e r th a n th a t in c id e n ta l to real estate title o r
in ve stm e n t a c tiv itie s .

Banks th a t have suspended o p e ra tio n s o r have ceased to accept new
deposits and are pro ce e d in g to liq u id a te th e ir assets and pa y o ff existin g
deposits;
B u ild in g and loan associations, savings and loan associations, c re d it
un io ns, personal loan com panies, and s im ila r in s titu tio n s , cha rtered u n der
laws a p p ly in g to such in s titu tio n s o r u n d e r general in c o rp o ra tio n laws, re­
gardless o f w h e th e r such in s titu tio n s are a u th o riz e d to accept deposits fro m
the p u b lic o r fro m th e ir mem bers and regardless o f w h e th e r such in s titu tio n s
are called "b a n k s ” (a fe w in s titu tio n s acce pting deposits under powers
granted in special cha rters are in c lu d e d );
M o rris Plan com panies, in d u s tria l banks, loan and in ve stm e n t com panies,
and s im ila r in s titu tio n s e xce p t those m e n tio n e d in the d e s c rip tio n o f in s titu ­
tio n s in c lu d e d ;
Branches o f fo re ig n banks and p riva te banks w h ic h c o n fin e th e ir business
to fo re ig n exchange dealings and do n o t receive " d e p o s its " as th a t te rm is
c o m m o n ly u n d e rsto o d ;
In s titu tio n s ch a rte re d u n d e r b a n kin g o r tru s t c o m p a n y laws, b u t o p e r­
a tin g as in ve stm e n t o r title insurance com panies and n o t engaged in de posit
ba nking o r fid u c ia ry a c tiv itie s ;
Federal Reserve Banks and o th e r banks, such as th e Federal H om e Loan
Banks and th e Savings and Loan B ank o f th e S tate o f N ew Y o rk , w h ic h
operate as re d isco u n t banks and do n o t accept deposits e xce p t fro m fin a n cia l
in s titu tio n s .
Branches: Branches in clu d e all o ffic e s o f a ba nk o th e r than its head
o ffic e , at w h ic h deposits are received, checks paid, o r m o ney lent. B anking
fa c ilitie s separate fro m a ba n kin g house, b a n kin g fa c ilitie s at g o vernm ent
establishm ents, o ffic e s , agencies, p a yin g or receiving s ta tio n s, drive -in fa c il­
ities, and o th e r fa c ilitie s o p erated fo r lim ite d purposes are d e fin e d as
branches u n d e r th e Federal D e p o sit Insurance A c t, section 3 (o ), regardless o f
the fa c t th a t in ce rta in States, in c lu d in g several th a t p r o h ib it th e o p e ra tio n
o f branches, such lim ite d fa c ilitie s are n o t considered branches w ith in the
m eaning o f S tate law .

NUMBER

Banks: Commercial banks in c lu d e th e fo llo w in g categories of ba n kin g
in s titu tio n s :
N a tio n a l banks:
In c o rp o ra te d S ta te banks, tru s t com panies, and bank and tru s t c o m ­
panies re g u la rly engaged in th e business o f receiving deposits, w h e th e r de­
m and o r tim e , e x c e p t m u tu a l savings banks;
S to c k savings banks, in c lu d in g g u a ra n ty savings banks in N ew H am pshire;
In d u s tria l and M o rris Plan banks w h ic h operate u n der general b a n kin g
codes, o r are s p e c ific a lly a u th o riz e d b y la w to accept deposits and in pra ctice
d o so, o r th e o b lig a tio n s o f w h ic h are regarded as deposits fo r de posit in s u r­
ance;
A re gulate d c e rtific a te d b a n k in G eorgia; governm ent-ope rate d banks in
N o rth D a ko ta and P u e rto R ic o ; a co o p e ra tiv e bank, usually classified as a
c re d it u n io n , o p e ra tin g u n d e r a special c h a rte r in N ew H am pshire; a savings
in s titu tio n , k n o w n as a " t r u s t c o m p a n y ," o p e ra tin g un der special ch a rte r in
Texas; th e Savings Banks T ru s t C o m p a n y in N ew Y o rk ; the Savings Bank and
T ru s t C o m p a n y N o rth w e s t W ashing ton in th e S tate o f W ashington; and
branches o f fo re ig n banks engaged in a general d e p o s it business in Illin o is ,
M assachusetts, N e w Y o rk , O regon, W ashing ton, P uerto R ico, and V irg in
Islands;
P rivate banks u n d e r S ta te su p e rvisio n , and such o th e r p riva te banks as are
re p o rte d b y re lia b le u n o ffic ia l sources to be engaged in de posit banking.

Table 101. CHANGES IN NUMBER AN D CLASSIFIC ATIO N OF BANKS A N D BRANCHES IN THE U N ITE D STATES
(STATES AN D OTHER AREAS) DURING 1975

N oninsured

Insured
T y p e o f change
T o ta l

Insured

M utua l savings banks

Com m ercial banks and no n d e p o sit tru s t com panies

A ll banks

N on­
insured

State

To ta l

Banks
of
de­
po sit

N on­
deposit

T o ta l

Insured

N on­
insured

FEDERAL

Na­
tio n a l

Not
m em ­
bers
F.R .
System

Mem bers F.R .
System

T o ta l

co m ­
panies1

A L L B A N K I N G O F F IC E S
47,238
45,308

46,465
44,566

773
742

44,916
43,186

44,568
42,859

21,074
20,498

5,452
5,281

18,042
17,080

261
246

87
81

2,322
2,122

1,897
1,707

425
415

+1,930

+1,899

+31

+1,730

+1,709

+576

+171

+962

+15

+6

+200

+190

+10

2,223
277
1,946

2,135
246
1,889

88
31
57

2,014
276
1,738

1,979
246
1,733

866
75
791

207
13
194

906
158
748

26
22
4

9
8
1

209
1
208

156
0
156

53
1
52

Offices c lo se d ....................................................................................
Banks ......................................................................................................................
Branches .................................................................................................................

293
108
185

281
99
182

12
9
3

284
103
181

277
96
181

132
39
93

63
12
51

82
45
37

4
4
0

3
3
0

9
5
4

4
3
1

5
2
3

Changes in c la ssific a tio n ....................................................................
A m o n g b a n k s .......................................................................................................
A m o n g b ra n c h e s ..................................................................................................

0
0
0

+45
+17
+28

-4 5
-1 7
-2 8

0
0
0

+7
+5
+2

-1 5 8
-2
-1 5 6

+27
-2 7
+54

+138
+34
+104

-7
-5
-2

0
0
0

0
0
0

+38
+12
+26

-3 8
-1 2
-2 6

N um ber of banks, December 31, 1975 .........................................................
N um ber of banks, December 3 1 ,1 9 7 4 .........................................................

15,130
14,961

14,714
14,550

416
411

14,654
14,481

14,385
14,230

4,744
4,710

1,046
1,072

8,595
8,448

192
179

77
72

476
480

329
320

147
160

Net change during y e a r ..........................................................................

+169

+164

+5

+173

+155

+34

-2 6

+147

+13

+5

-4

+9

-1 3

Banks beginning o p e r a tio n .................................................................
New banks ............................................................................................................
Banks added to c o u n t2 ......................................................................................

277
265
12

246
246
0

31
19
12

276
264
12

246
246
0

75
75
0

13
13
0

158
158
0

22
12
10

8
6
2

1
1
0

0
0
0

1
1
0

Banks ceasing o p e r a t io n ....................................................................
A b s o rp tio n s , co n s o lid a tio n s , and m e rg e rs ..................................................
Closed because o f fin a n c ia l d i f f ic u l t ie s .......................................................
O th e r liq u id a tio n s ...............................................................................................
D isco n tin u e d de p o sit o p e ra tio n ....................................................................
Banks deleted fro m c o u n t ................................................................................

108
99
3
2
2
2

99
96
3
0
0
0

9
3
0
2
2
2

103
94
3
2
2
2

96
93
3
0
0
0

39
38
1
0
0
0

12
12
0
0
0
0

45
43
2
0
0
0

4
1
0
1
1
1

3
0
0
1
1
1

5
5
0
0
0
0

3
3
0
0
0
0

2
2
0
0
0
0

0

+17

-1 7

0

+5

0

+1

+4

0

0

+12

-1 2

BANKS

Noninsured banks becom ing insured




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

-5

INSURANCE CORPORATION

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

Offices o p e n e d ..................................................................................
Banks ......................................................................................................................
B ra n c h e s .................................................................................................................

Net change during year .

DEPOSIT

Num ber o f offices, Decem ber 3 1 , 1 9 7 5 .......................................................
Num ber o f offices, Decem ber 31, 1974 .......................................................

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

-2
+9
-1 1
0
0

-2 8
-1
+1
+4
-3 2

+30
-8
+10
-4
+32

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

Changes no t involving num ber in any class
Change in t itle .............................................................................
Change in loc atio n ........................................................................
Change in title and location ........................................................
Change in name of location ........................................................
Change in location within city .....................................................

290
23
6
13
391

287
20
6
13
374

3
3
0
0
17

281
20
6
13
377

281
19
6
13
365

98
10
3
3
125

26
1
1
1
15

157
8
2
9
225

0
1
0
0
6

0
0
0
0
6

9
3
0
0
14

6
1
0
0
9

3
2
0
0
5

Change in corporate powers
Granted trust p o w e r s ..................................................................

92

92

0

91

91

0

0

91

0

0

1

1

0

Num ber o f branches, December 31, 19753 ...................................................
N um ber of branches, December 3 1 , 19743 ...................................................

32,108
30,347

31,751
30,016

357
331

30,262
28,705

30,183
28,629

16,330
15,788

4,406
4,209

9,447
8,632

69
67

10
9

1,846
1,642

1,568
1,387

278
255

Net change during y e a r ..........................................................................

+1,761

+1

+204

+181

+23

BRANCHES

+26

+1,557

+1,554

+542

+197

+815

+2

1,946
1
85
45
1,741
74

1,889
1
84
44
1,723
37

57
0
1
1
18
37

1,738
1
81
43
1,575
38

1,733
1
81
43
1,571
37

791
0
37
18
722
14

194
1
7
2
177
7

748
0
37
23
672
16

4
0
0
0
3
1

1
0
0
0
1
0

208
0
4
2
166
36

156
0
3
1
152
0

52
0
1
1
14
36

Branches d is c o n t in u e d ......................................................................
Facilities designated by Treasury .................................................
B ra n c h e s .....................................................................................
Branches and/o r facilities deleted from c o u n t ................................

185
5
157
23

182
5
156
21

3
0
1
2

181
5
155
21

181
5
155
21

93
4
78
11

51
1
45
5

37
0
32
5

0
0
0
0

0
0
0
0

4
0
2
2

1
0
1
0

3
0
1
2

Other changes in c la s s ific a t io n ..........................................................
Branches changing class as a result of conversion............................
Branches of noninsured banks adm itted to in su ra n c e ....................
Branches transferred through absorption, consolidation, or merger .
Branches of insured banks w ithdraw in g from F .R .S ........................

0
0
0
0
0

+28
0
+28
0
0

-2 8
0
-2 8
0
0

0
0
0
0
0

+2
0
0
0
0

-1 5 6
-5
0
-1 5 1
0

+54
+18
0
+79
-4 3

+104
-1 3
+2
+72
+43

-2
0
-2
0
0

0
0
0
0
0

0
0
0
0
0

+26
0
+26
0
0

-2 6
0
-2 6
0
0

Changes not involving num ber in any class
Changes in operating pow ers of b r a n c h e s .....................................
Branches transferred through absorption, consolidation, or merger .
Changes in title, location or name of lo c a t io n ................................

2
102
621

2
102
618

0
0
3

2
102
621

2
99
586

1
37
297

0
11
61

1
51
228

0
0
0

0
0
0

0
3
35

0
3
32

0
0
3

BRANCHES

+1,735

Branches opened for b u sin e ss............................................................
Facilities designated by Treasury .................................................
Absorbed bank converted to b r a n c h .............................................
Branch replacing head office re lo c a te d .........................................
New b r a n c h e s .............................................................................
Branches and/or facilities added to co u n t2 ...................................

OF BANKS AND

0
0
0
0
0

NUMBER

Other changes in c la s s ific a t io n ...........................................................
National succeeding State b a n k .....................................................
State succeeding national b a n k .....................................................
A dm issio n of insured bank to F.R. S y s t e m ...................................
W ithdraw al from F.R. System w ith continued insurance ...............

1 1ncludes one noninsured nondeposit trust com p any that is a member of the Federal Reserve System.
2 Banks or branches opened prior to 1975 but not included in the count as of December 31, 1974.
i n c l u d e s facilities established at the request of the Treasury or com m anding officer of government installations and also a few seasonal branches that were not in operation as of Decem ber 31.

139




140

Table 102. CHANGES IN NUMBER OF COM M ERCIAL BANKS A N D BRANCHES IN THE U N ITE D STATES
(STATES A N D OTHER AREAS) DURING 1975, BY STATE
In operation
State

Dec. 31, 1975
Banks

Branches

Banks

Branches

Branches

Banks
Banks

Ceasing operation in 1975

Beginning operation in 1975

Net change
during 1975
Dec. 31, 1974
Branches

Branches

Banks

New

Other

New

Other

A b sorp tion s

Other

Branches

Other

28,705

+173

+1,557

264

12

1,613

125

94

9

155

26

14,458

28,432

+172

+1,547

262

12

1,599

125

94

8

152

25

Other a r e a s ...........................

24

283

23

273

+1

+10

2

0

14

0

0

1

3

1

A l a b a m a ..............................
A laska ..................................
A r iz o n a ................................
Arkansas ..............................
C a lif o r n ia .............................

299
11
23
262
216

457
88
443
3 18
3,585

293
10
25
262
198

417
81
425
281
3,490

+6
+1
-2
0
+18

+40
+7
+18
+37
+95

6
2
1
1
21

0
0
1
0
0

38
6
20
35
108

2
1
2
3
3

0
1
2
1
3

0
0
2
0
0

0
0
4
1
15

0
0
0
0
1

C o lo r a d o ...............................
C o n n e c t ic u t .........................
D e law are ..............................
District of C o lu m b ia .............
F lo r i d a ................................

346
72
18
16
747

54
564
137
130
196

3 24
71
18
16
716

50
547
130
126
121

+22
+1
NA
0
+31

+4
+17
+7
+4
+75

17
1
0
1
31

6
0
0
0
0

4
17
8
4
74

1
1
0
1
2

0
0
0
1
0

1
0
0
0
0

1
1
1
1
1

0
0
0
0
0

G e o r g ia ................................
H a w a ii..................................
Id a h o ....................................
Illinois ................................
In d i a n a ................................

444
11
24
1,235
407

691
154
200
216
909

447
12
24
1,204
4 10

656
151
191
194
842

-3
-1
NA
+31
-3

+35
+3
+9
+22
+67

3
0
0
30
2

0
0
0
2
0

37
3
9
20
63

6
0
0
2
5

6
0
0
1
5

0
1
0
0
0

7
0
0
0
1

1
0
0
0
0

I o w a ....................................
K a n sa s..................................
K entucky .............................
Louisiana .............................
M a i n e ..................................

661
616
342
254
48

4 08
151
509
585
287

6 65
613
342
249
49

385
127
471
541
277

-4
+3
0
+5
-1

+23
+24
+38
+44
+10

0
4
2
5
1

0
0
0
0
0

19
25
35
45
12

5
0
3
2
1

4
1
2
0
2

0
0
0
0
0

1
1
0
3
2

0
0
0
0
1

M a ry la n d ...............................
M a s s a c h u s e tts .......................
M ic h ig a n ..............................
M in n e s o ta .............................
Mississippi ...........................

115
150
351
747
185

751
9 05
1,562
52
546

114
152
347
745
181

703
885
1,480
32
503

+1
-2
+4
+2
+4

448
+20
+82
+20
+43

2
0
7
2
7

0
0
0
0
0

47
26
87
19
39

2
2
3
2
5

1
2
3
0
3

0
0
0
0
0

1
6
5
0
1

0
2
3
1
0

Missouri ..............................
M o n t a n a ..............................
N e b r a sk a ...............................
Nevada ................................
New H am p sh ire .....................

706
156
453
8
79

3 20
16
96
111
112

700
154
453
8
82

261
14
83
105
99

+6
+2
NA
NA
-3

+59
+2
+13
+6
+13

7
2
0
0
1

0
0
0
0
0

58
2
14
6
9

4
0
1
0
4

0
0
0
0
4

1
0
0
0
0

3
0
2
0
0

0
0
0
0
0

States




CORPORATION

14,481

29,979

INSURANCE

30,262

14,630

DEPOSIT

14,654

50 States and D .C ...................

FEDERAL

Total United S t a t e s ...............

New J e r s e y ...........................
New M e x i c o .........................
New Y o r k .............................
North C a r o l i n a .....................
North D a k o t a .......................

209
81
305
94
172

1,417
206
3,204
1,585
89

218
77
305
92
171

1,336
189
3,090
1,547
80

-9
+4
0
+2
+1

+81
+17
+114
+38
+9

3
4
5
2
1

0
0
3
0
0

76
17
133
51
10

14
1
9
1
0

12
0
8
0
0

0
0
0
0
0

8
1
27
9
0

1

O h i o ....................................
O k la h o m a .............................
Oregon..................................
P e n n sy lv a n ia .........................
Rhode Is la n d .........................

496
467
47
398
16

1,674
99
447
2,275
220

498
460
49
406
16

1,613
96
420
2,193
214

-2
+7
-2
-8
NA

+61
+3
+27
+82
+6

1
7
0
2
0

0
0
0
0
0

64
5
30
85
7

2
0
2
10
0

3
0
2
9
0

0
0
0
1
0

4
0
5
12
0

1

South C a r o l i n a .....................
South D a k o t a .......................
T e n n e sse e .............................
Texas ..................................
U t a h ....................................

90
158
344
1,342
64

601
125
772
138
204

91
158
337
1,313
55

581
115
723
123
186

-1
0
+7
+29
+9

+20
+10
+49
+15
+ 18

2
1
8
33
9

0
0
0
0
0

20
7
51
15
18

4
3
3
1
0

3
1
1
2
0

0
0
0
2
0

4
0
5
1
0

0
0
0
0
0

V e r m o n t ...............................
V irginia ..............................
W a s h in g to n ...........................
West Virginia .......................
W is c o n s in .............................
W yo m in g .............................

32
291
98
219
628
77

139
1,173
685
35
336
2

34
288
93
214
625
74

131
1,112
661
26
326
2

-2
+3
+5
+5
+3
+3

+8
+61
+24
+9
+10
NA

0
8
7
5
5
3

0
0
0
0
0
0

6
72
22
9
12
0

2
7
2
0
1
0

2
5
2
0
2
0

0
0
0
0
0
0

0
15
0
0
3
0

0
3
0
0
0
0

1
0
15
8

32
2
221
28

1
0
14
8

28
2
214
29

NA
NA
+1
0

+4
NA
+7
-1

0
0
1
1

0
0
0
0

4
0
7
3

0
0
0
0

0
0
0
0

0
0
0
1

0
0
0
3

0
0
0
1

1
1

1
1

NUMBER
OF BANKS AND

Other areas
Pacific Is la n d s .......................
Canal Z o n e ...........................
Puerto R ic o ...........................
Virgin I s l a n d s .......................
N A - N o activity.

BRANCHES




142

Table 103. N U M B E R OF B A N K IN G O F F IC E S IN T H E U N IT E D S T A T E S (S T A T E S A N D O T H E R A R E A S ), D E C E M B E R 31, 1975
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

Noninsured

Insured

Banks operating branches .

Insured

Non­
insured

Total

Total

Na­
tional

State

Nonm em ­
bers
F.R.
S y s­
tem

Members F.R.
System

Banks
of de­
p o sit2

Non­
deposit
trust
co m ­
panies9

Total

Insured

Non­
insured

All
banks
of
de­
posit

Com ­
mercial
banks
of
deposit

Mutual
savings
banks

47,238
15,130

46,465
14,714

773
416

44,916
14,654

44,568
14,385

21,074
4,744

5,452
1,046

18,042
8,595

261
192

87
77

2,322
476

1,897
329

425
147

98.5
97.7

99.4
98.7

81.7
69.1

9,211
5,919

8,927
5,787

284
132

9,114
5,540

8,869
5,516

2,649
2,095

544
502

5,676
2,919

174
18

71
6

97
379

58
271

39
108

97.7
97.9

98.1
99.7

59.8
71.5

32,108

31,751

357

30,262

30,183

16,330

4,406

9,447

69

10

1,846

1,568

278

98.9

99.8

84.9

50 States & D . C . - a ll o f f i c e s -----B a n k s ..................................
Unit banks.......................

46,930
15,105

46,198
14,701

732
4 04

44,609
14,630

44,302
14,373

21,010
4,741

5,452
1,046

17,840
8,586

220
180

87
77

2,321
475

1,896
328

425
147

98.6
97.8

99.5
98.8

81.7
69.1

9,201
5,904

8,925
5,776

276
128

9,105
5,525

8,868
5,505

2,648
2,093

544
502

5,676
2,910

166
14

71
6

96
379

57
271

39
108

97.8
97.9

98.2
99.7

59.4
71.5

16,269

4,406

9,254

40

10

1,846

1,568

278

99.0

99.9

84.9

64
3

0
0

202
9

41
12

0
0

86.7
52.0

8
4

0
0

0

0

0
0

20.0
73.3

86.6
50.0
77.7

100.0
100.0

0
9

1
1
7

0
0

0
0

1
1
7

73.3

100.0
0.0
0.0

Banks operating branches .
B ra nch es..............................

31,825

31,497

328

29,979

29,929

Other a re a s-a ll o ffic e s ...............
B anks ..................................
Unit banks.......................

308
25

267
13

41
12

307
24

266
12

10
15

2
11

8
4

9
15

283

254

29

283

254

61

0

193

29

0

0

0

0

89.8

89.8

756
299

756
299

0
0

756
299

756
299

389
95

40
18

327
186

0
0

0
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

100.0
100.0

100.0
100.0

0.0
0.0

Banks operating branches .
B ran ch es..............................

1
11

1
2

State
Alab am a — all o ffic e s...................
B a n k s ..................................
Unit ba n k s .....................

158
141

158
141

0
0

158
141

158
141

33
62

11
7

114
72

0
0

0
0

0
0

0
0

0
0

B ra nch es..............................

457

457

0

457

457

294

22

141

0

0

0

0

0

100.0

100.0

0.0

A la s k a - a ll o f f i c e s .....................
Banks
..............................
Unit banks.......................

103
13

103
13

0
0

99
11

99
11

77
6

0
0

0
0

0
0

100.0
100.0

100.0
100.0

100.0
100.0

0
0

4
2
7
7
2

0
0

1
5

22
5
7

0
0

100.0
100.0

100.0
100.0

100.0
100.0

0

100.0

100.0

100.0

Banks operating branches .

3
10

3
10

0
0

2
9

2
9

4

0
0

0
0

B ra n ch es..............................

90

90

0

88

88

71

0

17

0

0

4
2
7
7
2

Arizo na— all o f f i c e s ...................
Banks ..................................
Unit banks.......................

4 66
23

4 58
15

8
8

466
23

458
15

304
3

0
0

154
12

0
0

8
8

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

Banks operating branches .

14
9

6
9

8
0

14
9

6
9

1
2

0
0

5
7

0
0

8
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

B ra nch es...............................

443

443

0

443

443

0

142

0

0

0

0

0

100.0

100.0

0.0

Banks operating branches .




301

INSURANCE CORPORATION

Bra nch es..............................

DEPOSIT

United S ta te s -a ll o f f i c e s ...........
B a n k s ..................................
Unit banks.......................

Total

FEDERAL

State and type of bank
or office

Percentage insured1

M utual savings banks

Commercial banks and nondeposit trust com panies

All banks

A rk a n s a s-a ll o ffice s...................
Banks ..................................
Unit b a n k s .....................

580
262

576
258

4
4

580
262

576
258

236
75

124
138

120
138

4
0

124
138

120
138

19
56

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

318

318

0

318

318

C a lifo rn ia -a ll o ffic e s .................
B a n k s ..................................
Unit b a n k s .....................

3,801
216

3,778
200

23
16

3,801
216

3,778
200

Banks operating branches .
Branches

313
175

161

27
8
7
7
19

2,715
57

333
8

3
3

0
0

0
0

0
0

99.8
99.6

99.8
99.6

0.0
0.0

0

3
0

0
0

0
0

0
0

99.2
100.0

99.2
100.0

0.0
0.0

0

0

0

0

0

100.0

100.0

0.0

730
135

0
0

23
16

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

0.0
0.0

100
75
138

1
1
7

79
137

67
133

12
4

79
137

67
133

12
45

0
8

55
80

0
0

0
0

0
0

100.0
100.0

100.0
100.0

3,578

7

3,585

3,578

2,658

325

595

0

12
4
1

0
0

3,585

0

0

0

100.0

100.0

0.0

Co lorado — all o f f i c e s .................
B anks ..................................
Unit banks.......................

400
346

331
277

69
69

400
346

331
277

163
132

20
17

148
128

69
69

0
0

0
0

0
0

0
0

82.8
80.1

82.8
80.1

0.0
0.0

0.0
0.0

227
50

69
0

296
50

227
50

103
29

15
2

109
19

69
0

0
0

0
0

0
0

0
0

76.7
100.0

76.7
100.0

54

54

0

54

54

31

3

20

0

0

0

0

0

100.0

100.0

0.0

C o n n e c tic u t-all o f f ic e s ..............
Banks ..................................
Unit b a n k s .....................

957
139

956
138

1
1
7

636
72

635
71

282
24

271
45
77

1
1
7

0
0

321
67
77

0
0

99.9
99.3

99.8
98.6

100.0
100.0

34

0

0
0

321
67
77

56

56

0
0

96.3
100.0

93.8
100.0

100.0
100.0

226

0

0

254

254

0

100.0

100.0

100.0

145
12

0
0

1
1
7

24
2

24
2

0
0

100.0
100.0

100.0
100.0

100.0
100.0

Banks operating branches .

27
112

26
112

0

16
56

15
56

3
21

B ra nch es...............................

818

818

0

564

564

258

82
2
7
7
80

D e law a re -a ll o f f i c e s .................
B a n k s ..................................
Unit banks.......................

179
20

178
19
7

1
1
7

155
18

154
17
7

9
5

0
0

8
12

12

0

8
10

10

2
3

0
0

5
7

0
0

0

0
2

0
2

0
0

100.0
100.0

100.0
100.0

0.0
100.0

159

159

0

137

137

4

0

133

0

0

22

22

0

100.0

100.0

100.0

D .C .- a ll o f f ic e s .........................
Banks ..................................
Unit b a n k s .....................

146
16

146
16

0
0

146
16

146
16

113
14

30
1

3
1

0
0

0
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

3
13

3
13

0
0

3
13

3
13

3
11

0
1

0
1
2

0
0

0
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0
0.0

Banks operating branches .
Bra nch es...............................

130

130

0

130

130

99

29

F lo rid a - a ll o ffic e s .....................
Banks ..................................
Unit banks.......................

943
747

939
743

4
4

943
747

939
743

360
295

34
31

545
417

573
174

569
174

4
0

573
174

569
174

234
61

29
2

306
111

Branch es..............................

196

196

0

196

196

65

3

128

G e o rgia -a ll offices ...................
B anks ..................................
Unit b a n k s .....................

1,135
444

1,132
441

3
3

1,135
444

1,132
441

387
64
77

82
9

663
368

Banks operating branches .

0

0

0

0

0

100.0

100.0

1
1
7

3
3

0
0

0
0

0
0

99.9
99.9

99.9
99.9

0.0
0.0

0

3
0

0
0

0
0

0
0

99.8
100.0

99.8
100.0

0.0
0.0

0

0

0

0

0

100.0

100.0

0.0

3
3

0
0

0
0

0
0

0
0

99.7
99.3

99.7
99.3

0.0
0.0

0.0
0.0

231
213

228
213

3
0

231
213

228
213

47

2
7

209
159

3
0

0
0

0
0

0
0

0
0

98.7
100.0

98.7
100.0

B ra nch es..............................

691

691

0

691

691

323

73

295

0

0

0

0

0

100.0

100.0

0.0

H a w a ii-a ll o f f i c e s .....................
Banks ..................................
Unit banks.......................

165
11

159
8

6
3
7

165
11
7

159
8

13
2

0
0

146
6

0
0

6
3
7

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

Banks operating branches .

Banks operating branches .
B ra n c h es..............................

0
8

2

10

0
8

0
2

0
0

0
6

0
0

2

0
0

0
0

0
0

0.0
100.0

0.0
100.0

0.0
0.0

151

3

154

151

11

0

140

0

3

0

0

0

100.0

100.0

0.0

143




1
10
154

BRANCHES

Banks operating branches .
B ra nch es...............................

OF BANKS AND

296
50

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

Banks operating branches .
Branches

NUMBER

Banks operating branches .
Branches3 .............................

144

Table 103. NUMBER OF B A N K IN G OFFICES IN THE UNITED STATES (STATES A N D OTHER AR EA S ),
D E C E M B E R 31, 1 9 7 5 -C O N T IN U E D
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE
A ll banks

Noninsured

Insured

Total

Insured

Non­
insured

Total

Total

Members F.R.
System

Na­
tional

State

Non­
deposit
trust
co m ­
panies9

Total

Insured

Non­
insured

All
banks
of
de­
posit

Com ­
mercial
banks
of
deposit

Mutual
savings
banks

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

33

0

0

0

0

0

100.0

100.0

0.0

84
69

809
716

22
22

7
7
7

0
0

0
0

0
0

98.5
98.2

98.5
98.2

0.0
0.0

0.0
0.0

224
24

224
24

167
6

10
4

0
0

10
14

10
14

1
5

2
2

B ra n ch es..............................

200

200

0

200

200

161

6

Illin o is -a ll o f f i c e s .....................
Banks ..................................
Unit banks.......................

1,451
1.235

1,422
1,206

29
29

1,451
1,235

1,422
1,206

529
421

47
14
7

7

995
211

29
0

1,024
211

995
211

317
104

54
15

624
92

22
0

0

0
0

0
0

0
0

97.8
100.0

97.8
100.0

216

216

0

216

216

108

15

93

0

0

0

0

0

100.0

100.0

0.0

In d ia n a -a ll offices ...................
Banks ..................................
Unit banks.......................

1,322
411

1,320
409

2
2

1,316
407

1,314
405

585
120

97
46

632
239

1
1

1
1
7

6
4

6
4

0
0

99.9
99.8

99.9
99.8

100.0
100.0

Banks operating branches .

166
245

164
245

2
0

164
243

162
243

35
85

22
24

105
134

1
0

0

2
2

2
2

0
0

99.4
100.0

99.4
100.0

100.0
100.0

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

911

911

0

909

909

465

51

393

0

0

2

2

0

100.0

100.0

100.0

Io w a - a ll o ffic e s .........................
B a n k s ..................................
Unit banks.......................

1,069
661

1,062
654

7
7
7

1,069
661

1,062
654

183
100

90
46

789
508

6
6

1
1
7

0
0

0
0

0
0

99.4
99.1

99.4
99.1

0.0
0.0

0.0
0.0

Banks operating branches .
Branches

410
251

403
251

0

410
251

403
251

52
48

26
20

325
183

6
0

0

0
0

0
0

0
0

98.5
100.0

98.5
100.0

B ra n ch es..............................

408

408

0

408

408

83

44

281

0

0

0

0

0

100.0

100.0

0.0

K an sa s -a ll o f f i c e s .....................
B a n k s ..................................
Unit b a n k s .....................

767
616

766
615

1
1
7

767
616

766
615

235
171

29
22

502
422

1
1
7

0
0

0
0

0
0

0
0

99.9
99.8

99.9
99.8

0.0
0.0

0.0
0.0

Banks operating branches .

Banks operating branches .

507
109

506
109

0

507
109

506
109

128
43

16
6

362
60

0

0
0

0
0

0
0

0
0

99.8
100.0

99.8
100.0

B ra nch es...............................

151

151

0

151

151

64

7

80

0

0

0

0

0

100.0

100.0

0.0

K e n t u c k y -a ll o ffic e s .................
B a n k s ..................................
Unit banks.......................

851
342

850
341

1
1

851
342

850
341

286
80

96
11

468
250

0
0

0
0

0
0

0
0

99.9
99.7

99.9
99.7

0.0
0.0

167
175

166
175

1
0

167
175

166
175

25
55

4
7

137
113

1
1
7

0
0

0
0

0
0

0
0

99.4
100.0

99.4
100.0

0.0
0.0

0

0

0

100.0

100.0

0.0

Banks operating branches .
B ran ch es..............................

509




509

0

509

509

206

85

218

0
0

0

CORPORATION

1,024
211

B ranch es..............................

INSURANCE

0
0

0
0

0
0

10
14

DEPOSIT

0
0

224
24

10
14

Banks operating branches .

Banks
of de­
posit2

0
0

224
24

Id a h o - a ll o f f ic e s .......................
Banks ..................................
Unit banks.......................

Non­
m em ­
bers
F.R.
S y s­
tem

FEDERAL

State and type o f bank
or office

Percentage insured1

M utual savings banks

Commercial banks and nondeposit trust companies

L o u isia n a -a ll o f f ic e s .................
B a n k s ..................................
Unit banks.......................

839
254

839
254

0
0

839
254

839
254

295
53

52
8

492
193

0
0

0
0

0
0

88
166

88
166

0
0

88
166

88
166

12
41

1
7

75
118

0
0

0
0

0
0

Banks operating branches .
Bra nch es...............................

585

585

0

585

585

242

44

299

0

0

0

M a in e -a ll o ffic e s .......................
B a n k s ..................................
Unit banks.......................

4 24
80

420
76

4
4

335
48
7

332
45

149
20
7

35
3

148
22

3
3

0
0

89
32

0
0

0
0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

0

100.0

100.0

0.0

31
7

1
1
7

99.1
95.0

99.1
93.8

98.9
96.9

87.5
100.0

88

Banks operating branches .

15
65

11
65

4
0

41

4
41

19

0
3

3
19

8
24

24

0

73.3
100.0

57.1
100.0

344

344

0

287

287

129

32

126

3
0
0

0
0

Branch es...............................

0

57

57

0

100.0

100.0

100.0

M a r y la n d -a ll o f f ic e s .................
B a n k s ..................................
Unit banks.......................

913
118

913
118

0
0

866
115

866
115

404
42

92
5

370
68

0
0

0
0

47
3

47
3

0
0

100.0
100.0

100.0
100.0

100.0
100.0

0

38
77

38
77

9
33

28
40

0
0

0
0

0
3

3

0
0

100.0
100.0

100.0
100.0

0.0
100.0

0

751

751

362

87

302

0

0

44

44

0

100.0

100.0

100.0

M assac h u se tts-a ll o ffic e s...........
Banks ..................................
Unit banks.......................

1,578
316

1,146
165

432
151

1,055
150

1,047
145

580
77

180
13

287
55

8
5

0
0

523
166

99

424
146

72.6
52.2

99.2
96.7

18.9
12.0

26
139

41
110

23
127

20
125

10
67

0
13

10
45

3
2

0
0

44
122

6

Banks operating branches .

67
249

14

38
108

38.8
55.8

87.0
98.4

13.6
11.5

Branches3 .............................

1,262

981

281

905

902

503

167

232

3

0

357

79

278

77.7

99.7

22.1

M ic h ig a n -a ll o f f i c e s .................
B a n k s ..................................
Unit banks.......................

1,913
351

1,910
350

3
1

1,913
351

1,910
350

869
120

568
89

473
141

3
1

0
0

0
0

0
0

0
0

99.8
99.7

99.8
99.7

0.0
0.0

Banks operating branches .

88
263

88
262

88
263

88
262

20
100

20
69

48
93

0
0

0
0

0
0

100.0
99.6

100.0
99.6

0.0
0.0

1,562

1,560

1,562

1,560

749

479

332

0
1
2

0
0

Bra nch es...............................

0
1
2

0

0

0

0

99.9

99.9

0.0

M in n e s o ta -a ll o f f i c e s ...............
B a n k s ..................................
Unit banks.......................

801
748

799
746

2
2

799
747

797
745

226
201

32
30

539
514

2
2

0
0

2
1

2
1

0
0

99.8
99.7

99.7
99.7

100.0
100.0

1
4

20

700
48

698
48

2
0

700
47

698
47

181
20

28
2

489
25

2
0

0
0

0
1

0
1

0
0

99.7
100.0

99.7
100.0

0.0
100.0

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

53

53

0

52

52

25

2

25

0

0

1

1

0

100.0

100.0

100.0

M is sis s ip p i-a ll o f f i c e s ...............
B a n k s ..................................
Unit banks.......................

731
185

731
185

0
0

731
185

731
185

458
140

0
0

0
0

0
0

0

Banks operating branches .

53
132

0
0

53
132

53
132

250
39
7

23
6

53
132

2
4

44
96

0
0

0
0

0
0

B ranch es...............................

546

546

0

546

546

211

17

318

0

0

0

M is so u r i-a ll o f f ic e s ...................
B a n k s ..................................
Unit banks.......................

1,026
706

1,020
700

6
6

1,026
706

1,020
700

180
113

96
61

744
526

2
2

4
4

0
0

Banks operating branches .
Branches

32

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

0

100.0

100.0

0.0

0

0
0

99.8
99.7

99.8
99.7

0.0
0.0

0.0
0.0

0

0
0

441
265

435
265

6
0

441
265

435
265

62
51

34
27

339
187

2
0

4
0

0
0

0
0

0
0

99.5
100.0

99.5
100.0

B ra n ch es..............................

320

320

0

320

320

67

35

218

0

0

0

0

0

100.0

100.0

0.0

M o n t a n a -a ll o ffic e s ...................
B a n k s ..................................
Unit banks.......................

172
156

170
154

2
2

172
156

170
154

61
55

50
45

59
54

0
0

2
2

0
0

0

100.0
100.0

100.0
100.0

0.0
0.0

Banks operating branches .

140
16

138
16

2
0

140
16

138
16

49
6

40
5

49
5

0
0

2
0

0
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

B ran ch es...............................

16

16

0

16

16

6

5

5

0

0

0

0

0

100.0

100.0

0.0

Banks operating branches .

145




0

BRANCHES

0
0

795

OF BANKS AND

38
80

795

Banks operating branches .

NUMBER

38
80

Bra nch es..............................

-p*

o>

Table 103. NUMBER OF B A N K IN G OFFICES IN THE UN ITED STATES (STATES A N D OTHER A R EAS),
D E C E M B E R 31, 1 9 7 5 -C O N T IN U E D
GROUPED ACCORDING TO INSU RANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

N oninsured

Insured

T o ta l

Insured

Non­
insured

Members F.R.
System

Total

T o ta l

Na­
tio n a l

544
448

5
5

549
4 53

544
448

169
120

378
70

5
0

383
70

378
70

85
35

96

0

96

96

49

119
8

119
8

0
0

119
8

119
8

81
4

18
1

1
7

1
7

0
0

Banks operating branches .

1
7

T o ta l

Insured

Non­
insured

A ll
banks
of
de­
p o s it2

C om ­
m ercial
banks
of
d ep osit

M utual
savings
banks

365
3 20

0
0

5
5

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

286
34

0
0

5
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

45

0

0

0

0

0

100.0

100.0

0.0

20
3

0
0

0
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

0.0
0.0

0
1

0
3

0
0

0
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

111

77

17

17

0

0

0

0

0

100.0

100.0

0.0

1
7

1
3

111

111

0

New H am p sh ire -a ll o f f ic e s ........
Banks .............................................
Unit banks.......................

246
107

244
105

2
2

191
79

189
77

129
44

3
1

57
32

1
1

1
1

55
28

55
28

0
0

99.6
99.1

99.5
9 8.7

100.0
100.0

46
61

44
61

2
0

30
49

28
49

12
32

0

16
16

1
0

1
0

16
12

16
12

0
0

97.8
100.0

96.6
100.0

100.0
100.0

Banks operating branches .
B ranches........................................

139

139

0

112

112

85

New Je rse y -a ll o ffic e s...............
Banks .............................................
Unit b a n k s .....................

1,751
229

1,751
229

0
0

1,626
209

1,626
209

1,081
113

7
2
241
21

25

0

0

27

27

0

100.0

100.0

100.0

304
75

0
0

0
0

125
20
5

125
20
5

0
0

100.0
100.0

100.0
100.0

100.0
100.0

15

15

0
0

100.0
100.0

100.0
100.0

100.0
100.0

105

105

0

100.0

100.0

100.0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

40
189

40
189

0
0

35
174

35
174

14
99

0
21

21
54

0
0

0
0

B ranches........................................

1,52 2

1,522

0

1,417

1,417

968

220

229

0

0

New M e x ic o - a ll o ffic e s .............
Banks .............................................
Unit banks.......................

287
81

286
80

1
1

287
81

286
80

147
36
7

21
7

118
37

0
0

1
1

0
0

2
5

10
27

0
0

1
0

0
0

Banks operating branches .

20
61

19
16

1
0

20
61

19
61

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

206

206

0

206

206

111

14

81

0

0

0

0

0

100.0

100.0

New Y o r k - a ll o ffice s.................
Banks .............................................
Unit banks.......................

4,269
423

4,222
385

47
38

3,509
3 05

3,462
267

1,671
150

1,576
70

215
47

42
33

5
5

760
118

760
118

0
0

99.0
92.1

98.8
8 9 .0

104
319

72
313

32
6

100
205

68
199

38
112

12
58

18
29

27
6

5
0

4
114

4
114

0
0

72.7
98.1

71.6
97.1

100.0
100.0

3 ,8 3 7

9

3,2 0 4

3,195

1,506

168

9

0

642

642

0

99.8

9 9 .7

100.0

Banks operating branches .

Banks operating branches .
B ranches3 ......................................

3,8 4 6




29

1,521

0.0

mo
100.0

CORPORATION

B ranches........................................

111

INSURANCE

96

N e va d a -a ll o ffic e s .....................
Banks .............................................
Unit banks.......................

Banks operating branches .

549
4 53

Banks
o f de­
p o s it2

N on­
deposit
tru s t
com ­
panies9

DEPOSIT

B ran c h e s ........................................

10
8
7
7
2

N e b ra sk a -a ll o f f i c e s .................
Banks .............................................
Unit banks.......................

383
70

State

N on­
m em ­
bers
F.R .
Sys­
tem

FEDERAL

State and ty p e o f bank
o r o ffic e

Percentage in s u re d 1

M u tu a l savings banks

Com m ercial banks and n o n deposit tru s t com panies

A ll banks

1,679
94

1,668
93

11
1

1,679
94

1,668
93

791
26

5
3

22
72

22
71

0
1

22
72

22
71

B ranches........................................

1,585

1,575

10

1,585

1,575

4
22
765

2
1
2

N o rth D a k o ta -a ll o ffic e s ...............
Banks .............................................
Unit banks.......................

261
172

2 54
169

7
3

261
172

254
169

66
43

6
4

N o rth C a r o lin a - a ll o f f ic e s .............
B a n k s .............................................
Unit banks.......................

Banks operating branches .

872
64

11
1

0
0

0
0

0
0

0
0

99.3
98.9

99.3
98.9

0.0
0.0

16
48

0
1

0
0

0
0

0
0

100.0
98.6

100.0
98.6

0.0
0.0

808

10

0

0
0
0

0

0

99.4

9 9.4

0.0

182
122

7
3

0
0

0
0

0
0

0
0

97.3
98.3

97.3
98.3

0.0
0.0

0
0

0
0

0
0

0
0

98.1
98.5

98.1
98.5

0.0
0.0

107
65

105
64

2
1

107
65

105
64

23
20

3
1

79
43

2
1

B ranches........................................

89

85

4

89

85

23

2

60

4

0

0

0

0

95.5

9 5.5

0.0

O h io - a ll o ffic e s .................................
Banks .............................................
Unit banks......................

2,170
49 6

2,169
4 95

1
1

2,170
4 96

2,169
495

1,198
219

519
112

452
164

1
1

0
0

0
0

0
0

0
0

100.0
99.8

100.0
9 9.8

0.0
0.0

0.0
0.0

Banks operating branches .

163
332

1
0

164
332

163
332

48
171

46
66

69
95

1
0

0
0

0
0

0
0

0
0

99.4
100.0

99.4
100.0

1,674

1,674

0

1,674

1,674

979

407

288

0

0

0

0

0

100.0

100.0

0.0

O k la h o m a -a ll o f f i c e s ....................
B a n k s .............................................
Unit banks.......................

566
4 67

561
462

5
5

566
467

561
4 62

251
194

16
14

294
254

1
1
7

4
4

0
0

0
0

0
0

99.8
99.8

99.8
9 9.8

0.0
0.0

0.0
0.0

Banks operating branches .

5
0

371
96

366
96

140
54

0

4
0

0
0

0
0

0
0

99.7
100.0

99.7
100.0

0

99

99

57

12
2
2

214
40

99

40

0

0

0

0

0

100.0

100.0

0.0

O re g o n -a ll o f f ic e s ............................
B a n k s ..............................................
Unit banks.......................

500
48

4 98
46

2
2

494
47

492
45

306
7

0
0

186
38

2
2

0
0

6
1

6
1

0
0

99.6
95 .8

99.6
95.7

100.0
100.0

Banks operating branches .

18
30

16
30

2
0

1
6

0
0

15
23

2
0

0
0

0
1

0
1

0
0

88.9
100.0

88.9
100.0

0.0
100.0

Branches3 ......................................

452

452

0

447

447

299

0

148

0

0

5

5

0

100.0

100.0

100.0

P e n n s y lv a n ia -a ll o ffic e s ..................
Banks ..............................................
Unit b a n k s .....................

2,847
4 06

2,839
4 00

2,665
392

1,600
244

198
14

867
134

6
4

2
2

174
8

174
8

0
0

99.8
9 9.0

99.8
99.0

100.0
100.0

133
267

8
6
5

2,673
398

138
268

133
259

92
152

6
8

35
99

2
0

0
8

0
8

0
0

97.8
99.6

97.8
99.6

0.0
100.0

184

733

3
1
2

0

166

166

0

99.9

99.9

100.0
100.0
100.0

18
29

16
29

1

138
260

Branches3 ......................................

2,441

2,439

2

2,275

2,273

1,356

Rhode Is la n d -a ll o f f i c e s ...............
Banks .............................................
Unit banks.......................

308
22

296
20

12
2

236
16

224
14

119
5

0
0

105
9

12
2

0
0

72
6

72
6

0
0

96.1
90.9

94.9
87.5

3
19

3
17

0
2

3
13

3
11

0
5

0
0

3
6

0
2

0
0

0
6

0
6

0
0

100.0
89.5

100.0
84.6

0.0
100.0

B ranches........................................

286

276

10

220

210

114

0

96

10

0

66

66

0

96.5

9 5.5

100.0

South C a r o lin a - a ll o f f ic e s .............
Banks .............................................
Unit b a n k s .....................

691
90

691
90

0
0

691
90

691
90

316
19

15
6

360
65

0
0

0
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

27
63

27
63

0
0

27
63

27
63

3
16

2
4

22
43

0
0

0
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

Banks operating branches .

Banks operating branches .

Banks operating branches .
B ran che s........................................

601

601

0

601

601

297

9

295

0

0

0

0

0

100.0

100.0

0.0

S outh D a k o ta - a ll o ffic e s ...............
B a n k s .............................................
Unit banks.......................

283
158

283
158

0
0

283
158

283
158

107
32

42
28

134
98

0
0

0
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

110
48

110
48

0
0

110
48

110
48

21
11

19
9

70
28

0
0

0
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

125

125

0

125

125

75

14

36

0

0

0

0

0

100.0

100.0

0.0

Banks operating branches .
B ra nch es........................................




BRANCHES

366
96

99

Banks operating branches .

OF BANKS AND

371
96

B ran che s........................................

NUMBER

164
332

B ran che s........................................

00

Table 103. NUMBER OF B A N K IN G OFFICES IN THE U NITED STATES (STATES A N D OTHER AR EA S ),
D E C E M B E R 31, 1 9 7 5 -C O N T IN U E D
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

N oninsured

Insured

T o ta l

Insured

Non­
insured

T o ta l

T otal

Members F.R.
System

Na­
tional

Banks
o f de­
p o s it2

N on­
deposit
tru s t
com ­
panies9

T o ta l

Insured

N on­
insured

A ll
banks
of
de­
p o sit

C om ­
m ercial
banks
of
d e p o s it

M utua l
savings
banks

1,1 1 6
344

1,1 1 4
3 42

2
2

1,116
344

1,114
342

443
75

65
15

606
252

1
1

1
1

0
0

0
0

0
0

99.9
99.7

9 9 .9
9 9.7

0.0
0.0

129
215

127
215

2
0

129
215

127
215

11
64

6
9

110
142

1
0

1
0

0
0

0
0

0
0

99.2
100.0

99.2
100.0

0.0
0.0

Banks operating branches .

772

772

0

112

112

368

50

354

0

0

0

0

0

100.0

100.0

0.0

Texas— all o f f ic e s ..............................
Banks .............................................
Unit banks.......................

1 ,4 8 0
1,342

1,474
1,336

6
6

1,480
1,342

1,474
1,336

605
584

54
39

815
713

6
6

0
0

0
0

0
0

0
0

9 9.6
99.6

9 9 .6
9 9.6

0.0
0.0

0.0
0.0

1,213
123

6
0

1,219
123

1213
123

565
19

26
13

622
91

6
0

0
0

0
0

0
0

0
0

99.5
100.0

99.5
100.0

138

138

0

138

138

21

15

102

0

0

0

0

0

100.0

100.0

0.0

U ta h - a ll o ffic e s .................................
B a n k s .............................................
Unit banks.......................

2 68
64

267
63

1
1

268
64

267
63

44
5

110
46

0
0

1
1

0
0

0
0

0
0

100.0
100.0

1 00 .0
100.0

0.0
0.0

1
0

113
12
7

0.0
0.0

Banks operating branches .

41
23

40
23

41
23

40
23

5

2
3

31
15

0
0

1
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

B ranches........................................

204

204

0

204

204

101

39

64

0

0

0

0

0

100.0

1 00.0

0 .0

V e r m o n t - a ll o ffic e s .........................
B a n k s .............................................
Unit banks.......................

1 85
38

184
37

1
1

170
31

64
16

0
0

106
15

0
0

1
1

14
6

14
6

0
0

100.0
100.0

1 00 .0
100.0

10 0.0
100.0

9
29

8
29

1
0

171
32
7

6
25

4
12

0
0

2
13

0
0

1
0

2
4

2
4

0
0

100.0
100.0

100.0
100.0

100.0
100.0

8

0

100.0

100.0

100.0

Banks operating branches .

Banks operating branches .

25

B ranches........................................

147

147

0

139

139

48

0

91

0

0

8

V ir g in ia - a ll o f f i c e s .........................
B a n k s .............................................
Unit banks.......................

1 ,4 6 4
291

1,463
290

1
1

1,464
291

1,463
290

293
66

393
116

0
0

1
1

0
0

0
0

0
0

100.0
100.0

1 00.0
10 0.0

0 .0
0.0

87
204

86
204

1
0

87
204

86
204

777
108
77

91

27
39

42
74

0
0

1
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

B ranches........................................

1,173

1,173

0

1,173

1,173

669

227

277

0

0

0

0

0

100.0

100.0

0.0

W a s h in g to n -a ll o f f i c e s ..................
B a n k s .............................................
Unit banks.......................

879
106

8 72
99

7
7
7

783
98

776
91

549
24

43
5

184
62

6
6

1
1

96
8

96
8

0
0

99.3
94.3

9 9 .2
9 3 .8

100.0
100.0

0
8

0
8

0
0

86.0
100.0

86.0
100.0

0.0
100.0

88

88

0

100.0

100.0

100.0

Banks operating branches .

Banks operating branches .

44
62

37
62

0

44
54

37
54

6
18

2
3

29
33

6
0

1
0

Branches? ......................................

773

773

0

685

685

525

38

122

0

0




CORPORATION

1,219
123

B ra nch es........................................

INSURANCE

B ran ch e s........................................

DEPOSIT

T enn e s s e e -a ll o ffic e s .......................
Banks .............................................
Unit banks.......................

State

Nonm em ­
bers
F .R .
Sys­
tem

FEDERAL

State and ty p e o f b ank
o r o ffic e

Percentage in s u re d 1

M utual savings banks

C om m ercial banks and nondeposit tru s t com panies

A ll banks

W est V ir g in ia - a ll o f f i c e s ............
Banks ..................................

254
219

254
219

0
0

254
219

2 54
219

122
103

33
29

99
87

0
0

0
0

0
0

Unit ban k s ................
Banks operating branches .

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

184
35

184
35

0
0

184
35

184
35

84
19

25
4

75
12

0
0

0
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

B ranch es...............................

35

35

0

35

35

19

4

12

0

0

0

0

0

100.0

100.0

0.0

W is c o n s in -a ll o ffic e s .................
Banks ..................................

9 67
631

962
626

5
5

964
628

959
623

212
128

54
32

693
463

0
0

5
5

3
3

3
3

0
0

100.0
100.0

100.0
100.0

100.0
100.0

100.0
0.0

423
203

5
0

425
203

420
203

84
44

22
10

314
149

0
0

5
0

3
0

100.0
100.0

100.0
100.0

336

0

336

336

84

22

230

0

0

0

3
0
0

0
0

3 36

0

100.0

100.0

0.0

W y o m in g -a ll o f f i c e s .................
B a n k s ..................................

79
77

79
77

0
0

79
77

79
77

46
45

14
14

19
18

0
0

0
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

75
2
2

75

2

0
0

14
0

17
1

0
0

0
0

0
0

0
0

0
0

100.0
100.0

100.0
100.0

0.0
0.0

0

75
2
2

44
1

2

75
2
2

1

0

1

0

0

0

0

0

100.0

100.0

0.0

33
1

21
1
0
1
20

12
0

33
1

21
1

10
0

0
0

11
1

12
0

0
0

0
0

0
0

0
0

63.6
100.0

63.6
100.0

0.0
0.0

0
0

0
1

0
1

0
0

0
0

0
1

0
0

0
0

0
0

0
0

0
0

0.0
100.0

0.0
100.0

0.0
0.0

12

32

20

10

0

10

12

0

0

0

0

62.5

62.5

0.0

0
0

2
0

2
0

0
0

0
0

0
0

0
0

2
0

0
0

0
0

0
0

0
0

0.0
0.0

0.0
0.0

0.0
0.0

0
0

0.0
0.0

Unit b a n k s ................
Banks operating branches .
B ranch es...............................
Other areas
Pacific Is.— all offices4. ...............
Banks ..................................

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

0
1

Branches5 .............................

32

Canal Z o n e -a ll o ffic e s...............
B a n k s ..................................

2

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

0
0
0
2

Puerto R i c o - a ll o f f i c e s ..............
B a n k s ..................................

237
16

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

4
12

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0.0
0.0

0.0
0.0

0

0

0

0

0
0
2

0
0

2

0
0
2

0
0

0

0

0

0

0

0.0

0.0

0.0

216

21
6

236
15

215
9

24
1
7

0
0

191
8

21
6

0
0

1
1
7

1
1
7

0
0

91.1
62.5

91.1
60.0

100.0
100.0

100.0
0.0

10

2
8

2
4

3
12

0

0
0

0
8

2
4

0
0

0

0

0
0

50.0
66.7

33.3
66.7

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

221

206

15

221

206

23

0

183

15

0

0

0

0

93.2

93.2

0.0

V irgin Islands— all o ffic e s ............
B a n k s ..................................

36
8

30

2

6
6

36
8

30
2

30
2

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

0
0

0
0

6
6

0
0

0
0

0
0

0
0

83.3
25.0

83.3
25.0

0.0
0.0

6
2

2

6
0

6
2

0
2

0
2

0
0

0
0

6
0

0
0

0
0

0
0

0
0

0.0
100.0

0.0
100.0

0.0
0.0

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

28

28

0

28

28

28

0

0

0

0

0

0

0

100.0

100.0

0.0

149




0

1
8

BRANCHES

Branches6 .............................

OF BANKS AND

428
203

NUMBER

Unit b a n k s ................
Banks operating branches .
B ra nch es...............................

150

Table 103. NUMBER OF B A N K IN G OFFICES IN THE UNITED STATES (STATES A N D OTHER AREAS),

INSURANCE
CORPORATION




Guam: 16 insured branches operated by 2 State n onm em ber banks in H aw aii, 2 State n o n m e m b e r banks
and a n ational bank in C a lifo rn ia , and 2 n a tio n a l banks in N ew Y o rk .
C aroline Islands: 4 noninsured branches operated by a national bank in C a lifo rn ia and a S tate n on m em b er
ba n k in Hawaii.
Mariana Islands: 4 noninsured branches operated by 1 national bank and 1 nonm em be r ba nk in C a liforn ia
and a State non m e m b e r b ank in Haw aii.
Marshall Islands: 3 noninsured branches operated b y a national bank in C a lifo rn ia and a S tate n o n m e m be r
bank in Hawaii.
M id w ay Islands: 1 noninsured branch operated b y a State n o n m em ber bank in Hawaii.
6 Canal Z one: 2 noninsured branches operated by 2 n ational banks in N ew Y o rk .
7Puerto R ico: 23 insured branches operated b y 2 n a tional banks in N ew Y o rk .
8 V irg in Islands: 20 insured branches operated by 2 national banks in N ew Y o rk , a na tio n a l bank in
C a lifo rn ia , and a national ba n k in Pennsylvania.
in c lu d e s noninsured n o ndeposit tru s t com panies th a t are m em bers o f Federal Reserve System .

DEPOSIT

1 N o n d e p o s it tr u s t com panies are exclu d ed in c o m p u tin g these percentages.
i n c lu d e s 14 n o n in sure d branches o f insured banks: 12 in th e P acific Islands and 2 in th e Canal Zone.
C a lif o r n ia : 1 b ran ch o pe rated b y a S tate n o n m e m b e r b ank in P uerto Rico.
Massachusetts: 1 branch o pe rated b y a n o n insured ba n k in N ew Y o rk .
N ew Y o r k : 19 branches op erated b y 3 S tate n o n m e m b e r banks in P uerto Rico.
O regon: 1 b ranch operated b y a na tio n a l b a n k in C a lifo rn ia .
Pennsylvania: 2 branches o pe rated by a n o n insured ba n k in N ew Y o r k and a national bank in New Jersey.
W ashin gto n: 3 branches op erated b y a n a tional ba n k in C a lifo rn ia .
4 U n ite d S tates Possessions: A m e ric a n Sam oa, Guam, and M id w a y Islands.
T ru s t T e rrito rie s : C aroline Islands, M arina Islands, and M arshall Islands.
5 P acific Islands: 31 branches:
A m e ric a n Sam oa: 3 insured branches o pe rated b y a State n o n m e m b e r b ank in Hawaii and a national bank
in N e w Y o rk .

FEDERAL

D E C EM B ER 31, 1 9 7 5 -C O N T IN U E D
GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

Table 104. NUMBER AN D DEPOSITS OF A L L C O M M ER C IA L A N D M U T U A L SAVIN G S BANKS
(STATES AN D OTHER AR EA S ), DECEMBER 31, 1975
BANKS GROUPED BY CLASS AND DEPOSIT SIZE
Insured com m ercial banks
D eposit size
(in do lla rs)

A ll
banks

M em bers F .R . System
To ta l

11
48
306
692
1.655
9 68
534
4 06
64
60

15 ,1 3 3

1 4 ,3 8 4

4 ,7 4 4

Insured

Non­
insured

1
10
93
176
357
172
106
90
19
22

46
207
1,588
2,273
2 ,8 1 4
1,039
396
209
19
3

136
23
36
14
15
11
10
23
3
2

0
0
0
7
23
61
75
105
32
26

0
0
2
4
19
36
45
40
1
0

1,046

8 ,5 9 4

273

329

147

(In thousands o f dollars)
A m o u n t o f deposits
Less th a n 1 m i l l i o n ..........................
1 to 2 m i l l i o n ...................................
2 to 5 m i l l i o n ...................................
5 to 10 m i l l i o n .................................
10 to 25 m i l l i o n ...............................
25 to 50 m i l l i o n ...............................
50 to 100 m i l l i o n ............................
100 to 500 m i l l i o n .........................
5 00 m illio n to 1 b i l l i o n ..................
1 b illio n o r m o r e ...............................

7 0 ,4 3 5
4 5 3 ,5 5 8
7 ,3 5 7 ,6 0 9
2 3 ,2 9 6 ,0 1 6
7 9 ,3 2 0 ,7 2 0
7 9 ,4 3 4 ,2 9 3
8 0 ,0 9 2 ,2 2 4
1 7 7 ,7 7 4 ,1 2 9
9 9 ,3 3 9 ,9 5 9
3 5 6 ,3 2 6 ,3 0 5

4 2 ,3 4 6
4 2 1 ,9 0 4
7 ,215,354
2 3 ,1 0 8 ,3 1 2
78,3 1 4 ,1 1 9
75,3 8 2 ,8 7 9
7 0 ,9 0 2 ,5 8 2
142,221,385
7 4 ,6 5 9 ,7 7 6
30 8,480,011

9 ,2 3 6
8 3 ,729
1 ,148,572
5 ,2 2 9 ,3 2 3
27,7 0 1 ,8 0 9
3 3 ,897,321
3 6 ,8 7 9 ,6 9 6
84,1 4 0 ,2 9 9
4 6 ,0 3 9 ,5 8 7
215,178,451

959
15,145
3 4 0 ,3 0 8
1 ,275,038
5 ,8 7 2 ,3 7 9
6 ,0 1 3 ,8 0 4
7 ,3 2 2 ,7 5 0
1 9,786,347
13,5 3 9 ,3 8 6
8 9 ,2 4 3 ,1 3 3

32,151
3 2 3 ,0 3 0
5 ,7 2 6 ,4 7 4
16,603,951
4 4 ,7 3 9 ,9 3 1
3 5 ,4 7 1 ,7 5 4
2 6 ,7 0 0 ,1 3 6
3 8 ,2 9 4 ,7 3 9
15,0 8 0 ,8 0 3
4 ,0 5 8 ,4 2 7

2 8,089
3 1 ,6 5 4
134,513
100,957
2 5 5 ,5 9 6
4 5 7 ,4 9 3
833 ,4 2 7
4 ,7 8 6 ,4 5 7
2 ,123,541
3 ,3 8 1 ,5 2 7

0
0
0
54,509
4 1 7 ,0 7 9
2 ,2 8 0 ,7 3 5
5 ,2 3 6 ,2 9 3
2 3 ,9 3 3 ,5 1 0
2 1 ,7 3 9 ,2 1 4
4 4 ,4 6 4 ,7 6 7

0
0
7,742
32,238
333,926
1,313,186
3,1 1 9 ,9 2 2
6 ,8 3 2 ,7 7 7
8 17 ,4 2 8
0

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

9 0 3 ,4 6 5 ,2 4 8

7 8 0 ,7 4 8 ,6 6 8

4 5 0 ,3 0 8 ,0 2 3

1 4 3 ,4 0 9 ,2 4 9

18 7 ,0 3 1 ,3 9 6

1 2 ,1 3 3 ,2 5 4

98 ,1 2 6 ,1 0 7

1 2,4 5 7 ,2 1 9




BRANCHES

58
265
1,987
3,141
4,8 2 6
2,179
1,036
705
102
85

M u tu a l savings banks

OF BANKS AND

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

194
2 88
2 ,0 2 5
3 ,1 6 6
4 ,8 8 3
2 ,2 8 7
1,166
873
138
113

State

N on­
insured
banks
and tru s t
com panies

NUMBER

National

N u m b e r o f banks
Less th a n 1 m i l l i o n .........................
1 to 2 m illio n ......................................
2 to 5 m i l l i o n ...................................
5 to 10 m i l l i o n .................................
10 to 25 m i l l i o n .................................
25 to 50 m i l l i o n ...............................
50 to 100 m i l l i o n ............................
100 to 500 m i l l i o n ..........................
5 00 m illio n to 1 b i l l i o n ..................
1 b illio n o r m o r e ...............................

Non­
m em bers
F.R . System

Table 105. NUMBER A N D DEPOSITS OF A L L C O M M ERCIAL BANKS1 IN THE U N ITE D STATES (STATES A N D OTHER AR EA S ),
D E C E M B E R 31, 1975
BANKS GROUPED BY DEPOSIT SIZE AND STATE
(Amounts in thousands of dollars)
Banks with deposits o f Less
than
$1 m illion

$1 m illion
to
$2 m illion

$2 million
to
$5 m illion

$5 million
to
$10 million

$10 m illion
to
$25 m illion

$25 m illion
to
$50 m illion

$50 million
to
$100 million

$100 m illion
to
$50 0 m illion

$500 m illion
to
$1 billion

$1 billion
or
more

Total United States2
B a n k s .............................
Total de p o sits.................

14,657
789,831,015

194
68,052

288
444,297

2,023
7,311,850

3,155
23,181,001

4,841
78,302,278

2,190
75,593,056

1,046
71,257,010

728
145,821,091

105
75,990,842

87
311,861,538

Alabam a
B a n k s .............................
D e p o s its .........................

299
9,164,081

0
0

4
6,874

26
94,355

72
532,599

133
2,064,217

39
1,281,499

10
666,146

13
2,948,969

2
1,569,422

0
0

Alaska
B a n k s .............................
D e p o s it s .........................

11
1,250,032

1
176

1
1,698

0
0

0
0

0
0

3
105,939

1
55,782

5
1,086,437

0
0

0
0

A rizona
B a n k s ................. ...........
D e p o s its .........................

23
6,225,871

8
0

0
0

3
11,176

2
13,539

2
28,281

1
45,389

1
90,889

3
626,119

1
909,446

2
4,501,032

Arkansas
B a n k s .............................
D e p o s its .........................

262
6,018,937

6
2,220

5
8,262

25
95,486

69
517,700

94
1,568,704

41
1,410,195

13
904,785

9
1,511,585

0
0

0
0

California
B a n k s .............................
D e p o s its .........................

216
85,313,493

17
902

1
1,358

14
49,697

31
229,418

51
861,355

40
1,355,833

22
1,446,226

29
5,386,122

2
1,213,302

9
74,769,280

C olorado
B a n k s .............................
D e p o s its .........................

352
7,548,362

41
19,651

31
45,185

53
181,864

72
532,595

92
1,426,808

35
1,205,223

20
1,362,254

6
1,254,701

2
1,520,081

0
0

Connecticut
B a n k s .............................
D e p o s its .........................

72
7,394,921

0
0

0
0

6
19,402

12
97,649

22
338,796

15
513,349

6
415,633

8
2,366,109

1
679,344

2
2,964,639

Delaware
B a n k s .............................
D e p o s its .........................

18
1,955,536

1
0

0
0

1
3,315

4
27,687

6
77,137

1
38,478

1
59,164

3
1,155,805

1
593,950

0
0

FEDERAL

State

All
banks

INSURANCE
CORPORATION




DEPOSIT

States

District of C olum bia
B a n k s .............................
D e p o s it s .........................

0
0

1
5,538

2
32,260

5
182,443

2
151,735

3
1,222,999

1
895,912

1
1,180,731

Florida
B a n k s ............................
D e p o s it s ................... .

747
24,908,515

5
1,346

8
12,105

78
280,089

125
916,402

234
3,730,685

158
5,439,219

102
6,888,361

36
6,299,302

0
0

1
1,341,006

Georgia
B a n k s .............................
D e p o s it s .........................

443
12,358,060

6
3,700

13
19,709

69
253,842

122
904,561

159
2,589,146

43
1,373,589

20
1,413,362

7
1,275,295

2
1,357,053

2
3,167,803

Haw aii
B a n k s .............................
D e p o s it s .........................

11
2,599,156

3
0

0
0

0
0

0
0

1
21,177

0
0

0
0

5
789,933

2
1,788,046

0
0

Idah o
B a n k s .............................
D e p o s it s ....... .................

24
2,625,581

0
0

0
0

2
7,230

7
52,082

6
111,524

3
95,369

2
166,603

2
529,761

2
1,663,012

0
0

Illinois
B a n k s .............................
D e p o s its .........................

1,236
60,589,784

21
7,016

15
22,903

152
553,712

268
1,984,842

375
5,920,689

218
7,592,581

120
8,055,529

59
9,687,655

3
1,932,638

5
24,832,219

Indiana
Banks .............................
D e p o s its .........................

407
17,909,687

3
86

4
7,354

19
77,082

60
455,669

158
2,675,665

85
2,954,842

47
3,203,159

28
5,063,087

1
706,330

2
2,766,413

Iow a
Banks .............................
D e p o s its .........................

661
11,817,108

3
1,287

3
4,570

94
364,618

214
1,535,518

243
3,903,625

67
2,165,126

26
1,748,598

11
2,093,766

0
0

0
0

Kansas
B a n k s .............................
D e p o s its .........................

616
8,792,183

4
2,721

32
49,825

170
593,471

160
1,159,203

165
2,550,285

68
2,288,225

9
629,486

8
1,518,967

0
0

0
0

K entucky
B a n k s .............................
D e p o s its .........................

342
9,799,229

4
3,003

5
9,228

46
171,943

65
479,461

142
2,287,743

47
1,605,814

22
1,531,876

9
2,021,546

2
1,688,615

0
0

Louisiana
B a n k s ............................
D e p o s it s .........................

254
1 1,938,616

1
761

2
3,654

17
59,800

35
264,724

103
1,736,482

54
1,865,451

16
1,025,718

23
4,714,660

2
1,258,534

1
1,008,832

Maine
B a n k s .............................
D e p o s it s .........................

45
1,978,571

0
0

0
0

2
6,729

5
34,125

21
346,716

8
294,622

3
192,091

6
1,104,288

0
0

0
0

M aryland
Banks ............................
D e p o s it s .........................

115
8,734,945

0
0

1
1,988

11
40,345

23
164,446

33
560,484

23
756,902

15
967,355

4
1,000,702

4
3,439,047

1
1,803,676

Massachusetts
B a n k s ............................
D e p o s its .........................

150
15,086,362

1
709

0
0

5
16,993

23
183,236

46
727,800

27
1,016,078

24
1,789,909

20
4,184,290

0
0

4
7,167,347

153




BRANCHES

0
0

OF BANKS AND

1
953

NUMBER

16
3,672,571

154

Table 105. NUMBER A N D DEPOSITS OF A L L COM M ERCIAL BANKS1 IN THE U N ITE D STATES (STATES AN D OTHER AREAS),
DECEMBER 31, 19 75-C O N T IN U E D
BANKS GROUPED BY DEPOSIT SIZE AND STATE
(Amounts in thousands of dollars)
Banks w ith deposits o f -

State

Less
than
$1 m illio n

$1 m illio n
to
$2 m illio n

$2 m illio n
to
$5 m illio n

$5 m illio n
to
$ 10 m illio n

$ 10 m illio n
to
$ 25 m illio n

$25 m illio n
to
$ 50 m illio n

$50 m illio n
to
$ 1 0 0 m illio n

$ 1 0 0 m illio n
to
$ 5 0 0 m illio n

$5 0 0 m illio n
to
$1 b illio n

$1 b illio n
or
m ore

FEDERAL

A ll
banks

3
4 ,1 5 8

17
66,775

49
389,029

120
1,959,607

72
2,45 7 ,4 0 7

43
2 ,8 9 0 ,6 6 5

35
6 ,2 2 4 ,2 0 8

6
4 ,3 7 9 ,5 7 5

4
1 1 ,0 7 9 ,4 3 4

M in ne sota
Banks ......................................
D e p o s its .................................

747
1 4 ,7 4 4 ,3 2 3

1
435

13
21,361

173
651,8 5 2

226
1,602,336

227
3 ,5 2 5 ,9 8 8

68
2,2 9 4 ,5 9 4

28
1,789,939

8
1,269,274

0
0

3
3 ,5 8 8 ,5 4 4

Mississippi
Banks ......................................
D e p o s its .................................

185
5 ,6 5 3 ,9 8 8

0
0

5
8,187

23
86,434

36
273,530

73
1,162,768

27
897,7 3 9

12
734,9 1 0

7
1,144,235

2
1,346,18 5

0
0

M isso uri
B a n k s ......................................
D e p o s its .................................

706
1 7 ,2 6 2 ,7 7 5

8
2,819

8
11,711

149
510,378

168
1,240,113

236
3 ,7 7 2 ,9 1 9

83
2,873,991

35
2,430,431

15
2 ,7 5 2 ,6 4 2

2
1,047,3 3 3

2
2 ,6 2 0 ,4 3 8

M on ta n a
B a n k s ......................................
D e p o s its .................................

156
2 ,9 1 0 ,5 2 4

2
0

2
2,700

28
109,193

41
302,285

53
8 2 3 ,7 5 5

17
578,919

9
586,116

4
50 7,556

0
0

0
0

Nebraska
B a n k s ......................................
D e p o s its .................................

453
6 ,2 5 0 ,8 2 9

9
3,141

36
5 5 ,350

132
4 4 2,606

115
812,744

121
1,825,310

25
9 1 4 ,6 8 2

10
6 4 1 ,1 1 4

5
1,5 5 5 ,8 8 2

0
0

0
0

Nevada
Banks ......................................
D e p o s its .................................

8
1,8 8 4 ,9 4 0

0
0

0
0

0
0

0
0

1
13,028

0
0

2
132,851

4
9 0 1 ,3 4 2

1
83 7 ,7 1 9

0
0

N ew H am pshire
Banks ......................................
D e p o s its .................................

79
1 ,65 7 ,7 5 3

1
0

1
1,415

14
55,375

14
106,562

31
51 1 ,7 8 9

12
4 2 0 ,9 2 5

3
197,488

3
3 6 4 ,1 9 9

0
0

0
0

N ew Jersey
B a n k s ......................................
D e p o s its .................................

209
2 1 ,7 8 4 ,4 5 7

1
6 76

0
0

4
14,120

18
141,096

49
8 71,4 6 9

52
1,749,577

37
2 ,5 6 5 ,4 5 4

38
9 ,2 3 2 ,7 2 7

9
6 ,13 9 ,7 3 1

1
1,06 9,60 7

N ew M e xico
B a n k s ......................................
D e p o s its .................................

81
2 ,9 8 6 ,6 1 6

1
0

0
0

5
18,811

9
74,306

38
6 5 5 ,6 1 9

16
5 83,436

9
6 3 7,403

3
1,017,041

0
0

0
0




CORPORATION

2
877

INSURANCE

351
2 9 ,4 5 1 ,7 3 5

DEPOSIT

M ich ig a n
Banks ......................................
D e p o s its .................................

2
3,046

17
57,753

30
2 2 6 ,8 8 0

65
1,115,135

52
1,810,827

44
3 ,1 7 7 ,2 0 7

62
1 3 ,555,130

9
5,491,4 91

19
109,688,423

N o rth C a rolina
Banks ......................................
D e p o s its .................................

94
1 2 ,7 6 1 ,0 3 0

0
0

0
0

7
23,259

20
158,796

27
4 5 0 ,5 9 2

15
516,1 1 9

9
6 0 7,937

11
2 ,3 7 9 ,2 0 2

2
1,986,8 3 3

3
6 ,6 38 ,2 92

N o rth D ako ta
B a n k s ......................................
D e p o s its .................................

171
2 ,9 3 5 ,2 2 7

0
0

2
2,542

23
87,381

59
4 3 4 ,4 2 7

61
9 0 3 ,2 1 2

17
599,5 5 4

8
596,391

1
3 1 1 ,7 2 0

0
0

0
0

O hio
B a n k s ......................................
D e p o s its .................................

496
3 1 ,1 4 5 ,0 8 1

0
0

3
5,419

35
137,807

79
585,0 4 4

181
2 ,9 7 5 ,9 7 6

92
3 ,2 2 0 ,0 1 5

58
3 ,9 6 2 ,7 3 0

34
6,3 3 7 ,3 3 9

10
6 ,926,9 01

4
6 ,99 3,85 0

O klah om a
B a n k s ......................................
D e p o s its .................................

467
1 0 ,2 2 1 ,2 0 0

3
1,928

16
25,524

111
400,408

111
7 9 4,375

145
2 ,3 0 2 ,5 5 6

54
1,89 6 ,8 0 4

17
1 ,059,693

6
9 9 3 ,8 7 6

4
2 ,7 4 6 ,0 3 6

0
0

Oregon
Banks ......................................
D e p o s its .................................

47
6 ,1 4 2 ,8 2 9

0
0

1
1,052

3
10,923

11
7 8,115

16
2 8 8 ,0 9 6

7
247,1 8 3

3
2 30,0 3 9

4
8 1 9,152

0
0

2
4 ,4 68 ,2 69

P ennsylvania
Banks ......................................
D e p o s its .................................

3 98
4 4 ,5 0 6 ,2 5 0

4
686

0
0

15
55,516

53
38 9 ,8 3 7

135
2 ,3 3 1 ,6 8 9

83
2 ,9 6 3 ,0 8 0

46
3 ,0 9 0 ,9 4 8

46
9 ,6 8 8 ,4 0 3

8
6 ,0 6 2 ,1 4 3

8
19,92 3,94 8

R hode Island
B a n k s ......................................
D e p o s its .................................

17
3 ,3 1 3 ,3 6 3

2
926

0
0

1
3,361

4
2 9,482

3
4 6 ,3 4 8

1
4 1 ,3 1 4

2
179,791

1
1 14,410

2
1,506,179

1
1,391,552

S ou th C arolina
Banks ......................................
D e p o s its .................................

90
4 ,1 2 3 ,9 1 6

0
0

1
1,985

14
47,674

25
181,668

27
417,451

15
5 4 9,188

1
6 1 ,7 2 8

5
1,557,134

2
1 ,307,0 88

0
0

S ou th D a kota
Banks ......................................
D e p o s its .................................

158
2 ,9 1 3 ,5 7 6

0
0

1
1,818

38
142,607

61
4 1 8 ,0 1 0

35
5 27,9 9 3

16
6 0 5 ,0 9 9

3
247,591

4
9 7 0 ,4 5 8

0
0

0
0

Tennessee
B a n k s ......................................
D e p o s its .................................

344
13,097,841

2
322

5
7,751

46
159,880

73
54 9 ,6 9 5

125
2 ,097,991

57
2 ,0 8 3 ,7 5 2

21
1,361,965

10
2 ,4 5 7 ,4 3 6

5
4 ,3 7 9 ,0 4 9

0
0

Texas
B a n k s ......................................
D e p o s its .................................

1,342
4 7 ,2 9 7 ,5 3 4

7
4 ,2 0 3

39
58,910

200
709,783

288
2,12 0 ,1 2 2

457
7 ,4 9 3 ,2 5 9

208
7 ,1 9 9 ,5 6 3

73
4,954,871

60
11,637,893

5
3 ,4 1 9 ,8 6 2

5
9 ,6 99 ,0 68

U tah
B a n k s ......................................
D e p o s its .................................

64
3 ,3 7 2 ,8 4 7

5
2,217

4
6,388

9
29,107

15
114,157

18
2 8 1 ,7 1 5

5
185,051

1
75,931

5
1,155,735

2
1,522,5 4 6

0
0

V e rm o n t
B a n k s ......................................
D e p o s its .................................

32
1 ,3 5 3 ,4 1 2

1
0

2
3,701

0
0

5
38,891

14
2 45,163

3
109,658

3
200,581

4
75 5 ,4 1 8

0
0

0
0

155




BRANCHES

5
1,123

OF BANKS AND

3 05
1 3 5 ,1 2 7 ,0 1 5

NUMBER

N ew Y o rk
Banks ......................................
D e p o s its .................................

156

Table 105. NUMBER A N D DEPOSITS OF A L L COMM ERCIAL BANKS1 IN THE U N ITE D STATES (STATES A N D OTHER AR EA S ),
D EC E M B E R 31, 1 9 7 5 -C O N T IN U E D
BANKS GROUPED BY DEPOSIT SIZE AND STATE
(Amounts in thousands of dollars)

Banks w ith deposits o f -

State

Less
than
$1 m illio n

$1 m illio n
to
$2 m illio n

$2 m illio n
to
$5 m illio n

$5 m illio n
to
$10 m illio n

$10 m illio n
to
$25 m illio n

$25 m illio n
to
$50 m illio n

$50 m illio n
to
$10 0 m illio n

$100 m illio n
to
$ 5 0 0 m illio n

$ 5 0 0 m illio n
to
$1 b illio n

$1 b illio n
or
m ore

FEDERAL

A ll
banks

3
1,361

4
5,734

34
113,836

48
337,014

100
1,706,785

55
1,901,855

20
1,396,566

23
4 ,4 4 0 ,3 8 9

2
1 ,316,578

2
2 ,5 0 0 ,7 7 7

W ashington
B a n k s ......................................
D e p o s its .................................

98
9 ,8 6 0 ,8 6 9

5
1,997

2
2 ,8 1 4

17
61,560

20
155,793

27
4 3 0 ,0 3 0

9
3 2 2 ,6 4 4

7
442,241

6
1,078,230

3
2 ,1 0 5 ,0 8 5

2
5 ,26 0 ,4 7 5

West V irginia
Banks ......................................
D e p o s its .................................

219
5 ,5 05,941

1
810

2
2,8 6 9

20
76,362

39
295,902

94
1,520,013

39
1,364,509

17
1,209,419

7
1,036,057

0
0

0
0

W isconsin
Banks ......................................
D e p o s its .................................

628
1 5 ,0 0 7 ,5 6 2

5
0

8
11,355

84
316,186

148
1,093,156

244
3 ,9 8 2 ,2 1 3

90
2 ,9 8 9 ,0 5 9

35
2 ,4 9 1 ,9 2 3

12
2 ,0 7 5 ,4 8 0

1
6 1 2 ,3 0 7

1
1 ,43 5,8 8 3

W yom ing
B a n k s ......................................
D e p o s its .................................

77
1 ,6 3 3 ,5 8 8

0
0

3
3 ,7 9 4

9
32,760

16
115,276

28
4 7 0 ,0 2 9

16
5 25,6 1 5

3
178,066

2
3 0 8 ,0 4 8

0
0

0
0

Guam
B a n k s ......................................
D e p o s its .................................

1
3 0 ,5 5 9

0
0

0
0

0
0

0
0

0
0

1
3 0 ,559

0
0

0
0

0
0

0
0

Puerto Rico
B a n k s ......................................
D e p o s its .................................

15
3 ,1 4 4 ,3 3 0

0
0

0
0

1
4 ,5 6 5

1
6,071

1
11,918

1
2 8 ,686

4
27 4 ,2 0 8

5
1,175,413

2
1,643,46 9

0
0

V irgin Islands
B a n k s ......................................
D e p o s its .................................

8
3 4 6 ,6 0 9

0
0

0
0

1
4,429

3
25,295

1
2 2,283

1
4 5 ,4 8 6

1
8 6 ,152

1
162,964

0
0

0
0

Other areas

1 1ncludes n o n d e p o s it tru s t com p a nies: 8 in A riz o n a , 3 in Arkansas, 16 in C a lifo rn ia , 1 in Delaware, 3 in F lo rida, 3 in H aw aii, 7 in Illin o is , 1 in Indiana, 1 in Iow a, 4 in M issouri, 2 in M ontana, 5 in Nebraska, 1 in New H am pshire,
1 in N ew M e xico , 5 in N ew Y o r k , 4 in O klahom a, 2 in P ennsylvania, 1 in Tennessee, 1 in U tah, 1 in V e rm o n t, 1 in V irg in ia , 1 in W ashington, and 5 in W isconsin.
2 Excludes data fo r branches in U.S. te rrito rie s and tru s t te rrito rie s o f banks headquartered in the U nited States, and excludes data fo r 19 insured branches in New Y o r k o f 3 insured n onm em ber banks in Puerto Rico and one
insured branch in C a lifo rn ia o f an insured n o n m e m b e r bank in P uerto R ico.




INSURANCE CORPORATION

291
1 3 ,7 2 0 ,8 9 5

DEPOSIT

V irginia
B a n k s ......................................
D e p o s its .................................

ASSETS A ND L IA B IL IT IE S OF BANKS
Table 106.

Table 107.

Table 108.

Table 110.

OF BANKS

Table 113.

L IA B IL IT IE S

Table 1 1 2 .

AND

Table 1 1 1 .

ASSETS

Table 109.

Assets and liabilities of all commercial banks in the United States (States and other areas), June
3 0 ,1 9 7 5
Banks grouped b y insurance status and class o f bank
Assets and liabilities o f all commercial banks in the United States (States and other areas),
December 31, 1975
Banks grouped b y insurance status and class o f bank
Assets and liabilities of all mutual savings banks in the United States (States and other areas),
June 30, 1975, and December 31, 1975
Banks grouped b y insurance status
Assets and liabilities of insured commercial banks in the United States (States and other areas),
December call dates, 1965, 1971-1975
Assets and liabilities o f insured mutual savings banks in the United States (States and other
areas), December call dates, 1965, 1971-1975
Percentages o f assets and liabilities of insured commercial banks operating thro u g h o u t 1975 in
the U nited States (States and other areas), December 31, 1975
Banks grouped b y am ount o f deposits
Percentages of assets and liabilities of insured mutual savings banks operating th roughout 1975
in the U nited States (States and other areas), December 31, 1975
Banks grouped b y am ount o f deposits
D is trib u tio n of insured commercial banks in the United States (States and other areas),
December 31, 1975
Banks grouped according to am ount o f deposits and b y ratios o f selected items to assets o r
deposits

Commercial banks




incom e taxes on an accrual basis.
Since 19 6 9 , all m a jo rity -o w n e d premises subsidiaries are fu lly co n so li­
dated; o th e r m a jo rity -o w n e d do m e stic subsidiaries (b u t n o t com m ercial bank
subsidiaries) are c o n s o lid a te d i f th e y m eet any o f th e fo llo w in g c rite ria : (a)
any sub sid iary in w h ic h th e p a rent ba n k's in ve stm e n t represents 5 pe rcent o r
m ore o f its e q u ity ca p ita l acco unts; (b ) any sub sid iary w hose gross op e ra tin g
revenues a m o u n t to 5 p e rce n t o r m o re o f th e p a re n t ba nk's gross op e ra tin g
revenues; o r (b eginning in D ecem ber 19 72) (c) any sub sid iary whose " I n ­
com e (loss) b e fo re in c o m e taxes and securities gains o r losses" am ounts to 5
pe rcent o r m ore o f th e " In c o m e (Loss) be fo re incom e taxes and securities

157

B efore 1969, statem en ts o f assets and lia b ilitie s were s u b m itte d b y in ­
sured c o m m e rc ia l banks on e ith e r a cash o r an accrual basis, depending upon
th e ba n k's m e th o d o f b o o k k e e p in g . In 19 69, insured com m ercial banks
having resources o f $ 5 0 m illio n o r m ore, and be ginning in 1970, $25 m illio n
o r m o re, w ere re q u ire d to re p o rt th e ir assets and lia b ilitie s on the basis o f
accrual a cco u n tin g . W here th e results are n o t s ig n ific a n tly d iffe re n t, p a rtic ­
ular acco unts m ay be re p o rte d on a cash basis. Banks n o t subject to fu ll
accrual a cc o u n tin g are re q u ire d to re p o rt th e in s ta lm e n t loan fu n c tio n on an
accrual basis, o r else to s u b m it a s ta te m e n t o f unearned incom e on in s ta l­
m e n t loans c a rrie d in surplus acco unts. A ll banks are required to re p o rt

Mutual savings banks

Sources of data
Insured banks: see p. 181; n o ninsure d banks: S tate b a n kin g a u th o ritie s ;
and re ports fro m in d ivid u a l banks.

C O R P O R A T IO N

Since June 3 0 , 19 7 4 , a co n so lid a te d s ta te m e n t o f d o m e stic and fore ig n
assets and lia b ilitie s o f U.S. banks has been pu b lish e d se m ia n n u a lly b y the
C o rp o ra tio n in Assets and Liabilities— C om m ercial and M utual Savings
Banks. On D ecem ber 3 1 , 19 7 5 , th e co n so lid a te d assets o f insured c o m m e r­
cial banks to ta le d $ 1 ,0 9 5 .4 b illio n , com pare d to d o m e stic assets o f $ 9 5 2 .5
b illio n (see ta b le 10 7). T h e 140 insured co m m e rcia l banks th a t re ported
foreign o p eratio ns held co n so lid a te d assets o f $5 91.1 b illio n .

INSURANCE

Foreign assets of banks

DEPOSIT

E ffe c tiv e D ecem ber 31 , 1971, the R eports o f C o n d itio n and Incom e fo r
m u tual savings banks were revised. A m o n g th e changes was a re q u ire m e n t fo r
c o n so lid a tin g the accounts o f branches and subsidiaries w ith the pa re n t
bank, on a com para ble basis w ith com m ercial b a n k re ports (see above). A
1972 revision broadened th e c rite ria fo r c o n so lid a te d re p o rtin g ; it also p ro ­
vided fo r th e re p o rtin g o f investm ents in u n co n so lid a te d subsidiaries on an
e q u ity basis, com para ble w ith co m m e rcia l b a nk re p o rtin g .
One ob je ctive o f the revisions in 1971 was to p ro v id e a s im p lifie d re p o rt­
ing fo rm . T o this end, th e schedules fo r deposits and securities w ere co n ­
densed and s im p lifie d .
Several changes were made in the re p o rtin g o f spe cific item s. Loans are
re ported in so m e w h a t m o re de ta il tha n fo rm e rly . In real estate loans, co n ­
s tru c tio n loans are sho w n sep arately, and loans secured b y re sidential p ro p ­
erties are d e taile d as to those secured b y 1- to 4 -fa m ily pro p e rtie s and by
m u ltifa m ily (5 o r m ore) p roperties.
A n o th e r im p o rta n t change s h ifte d various reserve accounts w h ich had
been carried as d e d u ctio n s against assets (a b o u t $ 2 0 0 m illio n in 19 71) in to
the surplus accounts. Figures fo r ea rlier years in tab le 110 have been revised
in o rd e r to p ro vid e c o m p a ra b ility w ith th e 1 9 7 1 -1 9 7 5 data.
Beginning June 30 , 19 72, m u tu a l savings banks w ith to ta l resources o f
$25 m illio n o r m ore are re q u ire d to prepare R eports o f C o n d itio n on the
basis o f accrual acco u n tin g . A ll banks, regardless o f size, are re quired to
re p o rt in co m e taxes on an accrual basis.

FEDERAL




de tailed as those s u b m itte d by insured banks.
A d d itio n a l data on assets and lia b ilitie s o f all banks as o f June 30 , 1975
and D ecem ber 3 1 , 1975, are sh o w n in th e C o rp o ra tio n 's sem iannual p u b lic a ­
tio n Assets and Liabilities— C om m ercial a nd M utual Savings Banks.

158

gains o r losses” o f th e p a re n t ba nk. B eginn ing in 19 72, investm ents in sub­
sidiaries n o t c o n s o lid a te d in w h ic h th e b a n k d ire c tly o r in d ire c tly exercises
e ffe c tiv e c o n tro l are re p o rte d on an e q u ity (ra th e r than cost) basis w ith the
in ve stm e n t and u n d iv id e d p ro fits ad ju sted to in c lu d e the parent's share o f
th e su b sid iarie s' net w o rth .
In th e case o f insured banks w ith branches ou tsid e the 50 States, net
a m ounts due fro m such branches are in c lu d e d in "O th e r assets,'' and net
a m o u n ts due to such branches are in c lu d e d in "O th e r lia b ilitie s .” Branches
o f insured banks o u ts id e th e 50 States are tre a te d as separate en tities b u t are
n o t in c lu d e d in th e c o u n t o f banks. Data fo r such branches are n o t included
in th e c o u n t o f banks. Data fo r such branches are n o t inclu d e d in the figures
fo r th e States in w h ic h th e p a re n t banks are lo c a te d .
P rio r to 19 6 9 , securities held b y c o m m e rc ia l banks were re p o rte d net o f
v a lu a tio n reserves; to ta l loans w ere re p o rte d b o th gross (before de duction s
fo r reserves) and ne t, th e la tte r in c lu d e d in "T o ta l assets." Beginning in
19 69, loans and securities are show n on a gross basis in "T o ta l assets" o f
c o m m e rcia l banks. A ll reserves on loans and securities, in c lu d in g the reserves
fo r bad debts set up p u rs u a n t to Interna l Revenue Service rulings, are in ­
clu d e d in "R eserves on loans and s e c u ritie s " on the lia b ility side o f the
balance sheet.
In d iv id u a l loan item s are re p o rte d gross. In s ta lm e n t loans, how ever, are
o rd in a rily re p o rte d n e t i f th e in s ta lm e n t p a y m e n ts are applied d ire c tly to the
re d u c tio n o f th e loan. Such loans are re p o rte d gross if, un der c o n tra c t, th e
p a ym ents d o n o t im m e d ia te ly reduce th e un paid balances o f th e loan b u t are
assigned o r pledged to assure re p a y m e n t a t m a tu rity .
The ca te g o ry "T ra d in g a c c o u n t s e c u ritie s " was added to the c o n d itio n
re p o rt o f c o m m e rc ia l banks in 19 69 to o b ta in th is segregation fo r banks th a t
re g u la rly deal in secu ritie s w ith o th e r banks o r w ith the p u b lic. Banks
o cca sio n a lly h o ld in g securities purchased fo r possible resale re p o rt these
un der "In v e s tm e n t s e c u ritie s ."
Assets and lia b ilitie s held in o r a d m in is te re d b y a savings, bo n d , in su r­
ance, real estate, fo re ig n , o r a n y o th e r d e p a rtm e n t o f a b a n k, exce pt a tru s t
d e p a rtm e n t, are c o n s o lid a te d w ith th e respective assets and lia b ilitie s o f the
co m m e rcia l d e p a rtm e n t. "D e p o s its o f in d iv id u a ls , pa rtne rships, and co rp o ra ­
tio n s " in c lu d e tru s t fu n d s d e p o s ite d b y a tru s t d e p a rtm e n t in a com m ercial
o r savings d e p a rtm e n t. O th e r assets held in tru s t are n o t included in state­
m ents o f assets and lia b ilitie s .
D em and balances w ith , and de m and de posits due to , banks in the U n ite d
States, e xce p t p riv a te banks and A m e ric a n branches o f foreign banks, e x ­
clude re cip ro ca l in te rb a n k deposits. (R eciprocal in te rb a n k deposits arise
w hen tw o banks m a in ta in d e p o s it a cco unts w ith each o th e r.)
Asset and lia b ility data fo r n o n in s u re d banks are ta b u la te d fro m reports
p e rta in in g to the in d iv id u a l banks. In a fe w cases, these re ports are n o t as

Table 106. ASSETS A N D L IA B IL IT IE S OF A L L COM M ERCIAL BANKS IN THE U N ITE D STATES (STATES A N D OTHER A R EAS),
JUNE 30, 1975
BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK
(Amounts in thousands of dollars)
Insured banks

Asset, lia b ility , o r c a p ita l a c co u n t item

Noninsured banks

T o ta l

N ational

State

Not
mem bers
of F.R .
System

M em bers of
Federal Reserve System

T otal
Total

T o ta l a s s e ts ............................................................................................................

To ta l

Banks
of
d e p o s it1

N o nd e po sit
tru s t
com panies2

720,018,018

540,230,305

179,787,713

201,354,873

18,047,105

17,628,525

418,580

129,525,378
10,170,329
26 ,894,695

125,887,317
10,140,016
26,894,695

107,322,310
7 ,5 6 1 ,5 6 4
2 6 ,8 9 4 ,6 9 5

75,858,028
5 ,8 1 2 ,6 0 7
2 0 ,8 2 3 ,9 2 8

31,464,282
1,748,957
6,0 7 0 ,7 6 7

18,565,007
2,5 7 8 ,4 5 2
0

3,638,061
3 0,313
0

3,570,213
29,761
0

67,848
552
0

34,4 1 8 ,8 8 6
5,821,311
2 ,580,203
4 9 ,6 3 9 ,9 5 4

31,879,954
5,360,291
2,085,616
49,5 2 6 ,7 4 5

1 9 ,727,038
3 ,6 4 5 ,0 0 9
1,774,512
4 7 ,7 1 9 ,4 9 2

1 3,234,616
3 ,194,711
1,058,693
31 ,7 3 3 ,4 7 3

6 ,4 9 2 ,4 2 2
4 5 0 ,2 9 8
715,8 1 9
1 5,986,019

12,152,916
1,715,282
3 1 1 ,1 0 4
1,807,253

2 ,5 3 8 ,9 3 2
4 6 1 ,0 2 0
4 9 4 ,5 8 7
113,209

2 ,4 7 5 ,5 9 4
4 5 9 ,4 1 4
4 9 4 ,5 6 6
110,878

63 ,3 3 8
1,606
21
2,331

S e c u r itie s - to ta l.............................................................................................
U.S. T reasury s e c u r itie s ......................................................................
O bligations o f o th e r U.S. G o ve rn m e n t agencies and corps . . .
O blig a tio n s o f States and p o litic a l subdivisions .........................
O th e r securities .....................................................................................

213,415,592
68,6 1 8 ,8 4 5
3 3 ,9 0 9 ,8 6 7
102,255,129
8,631,751

210,489,997
6 8,208,291
3 3,516,064
101,268,813
7,496,829

149,774,056
4 9 ,6 1 4 ,5 9 0
2 1 ,1 9 6 ,0 4 3
7 3 ,8 0 6 ,9 8 4
5 ,1 5 6 ,4 3 9

115,983,645
37 ,6 1 0 ,3 7 4
17,211,926
57,136,541
4 ,0 2 4 ,8 0 4

33,790,411
1 2,004,216
3,9 8 4 ,1 1 7
1 6,670,443
1,131,635

60,715,941
18,593,701
12,320,021
2 7,4 6 1 ,8 2 9
2 ,3 4 0 ,3 9 0

2,925,595
4 1 0 ,5 5 4
3 9 3 ,8 0 3
9 8 6 ,3 1 6
1,134,922

2,736,196
39 9 ,4 9 6
38 4 ,0 1 3
88 2 ,2 8 7
1 ,070,400

189,399
11,058
9 ,7 9 0
104,029
64,522

In v e s tm e n t s e c u ritie s -to ta l ...............................................................
U.S. Treasury securities.................................................................

207,2 1 7 ,2 6 4

204,302,487

143,637,801

65,674,208
32,968,755
100,348,534
8,225,767

65,274,472
32,574,952
99,362,218
7,090,845

Obligations of other U.S. Government agencies and corps.
Obligations of States and political subdivisions....................
Other securities................................................................................
T ra d in g acco u n t s e c u r itie s - to ta l.......................................................
U. S. Treasury securities.................................................................

1 1 1,734,963

3 1 ,9 0 2 ,8 3 8

6 0 ,6 6 4 ,6 8 6

2 ,9 1 4 ,7 7 7

2,72 5 ,3 8 6

189,391

46,705,111
20,262,271
71,914,116
4,756,303

35,699,875
16,467,841
55,837,102
3,730,145

11,005236
3,794,430
16,077,014
1,026,158

18,569,361
12,312,681
27,448,102
2,334,542

399,736
393,803
986,316
1,134,922

388,686
384,013
882,287
1,070,400

11,050
9,790
104,029
64,522

1,887,573

6,19 8 ,3 2 8

6,187,510

6 ,1 3 6 ,2 5 5

4 ,2 4 8 ,6 8 2

51,255

10,818

10,810

8

Obligations of other U.S. Government agencies and corps.
Obligations of States and political subdivisions....................
Other securities................................................................................

2,944,637
941,112
1,906,595
405,984

2,933,819
941,112
1,906,595
405,984

2,909,479
933,772
1,892,868
400,136

1,910,499
744,085
1,299,439
294,659

998,980
189,687
593,429
105,477

24,340
7,340
13,727
5,848

10,818
0
0
0

10,810
O
0
0

8
0
0
0

Federal fu n d s sold and securities purchased u n d e r agreements
to r e s e l l- t o t a l ...................................................................................
W ith dom estic c o m m e rcia l b a n k s .....................................................
W ith bro ke rs and dealers in s e c u ritie s .............................................
W ith o th e rs ...............................................................................................

38,895,786
3 4 ,1 1 7 ,5 8 8
3,0 5 3 ,9 6 6
1,724,232

37,437,164
32,658,966
3,053,966
1,724,232

28,960,135
2 4,305,851
2,9 7 6 ,7 8 9
1,677,495

23,942,687
20 ,4 5 7 ,4 6 6
2 ,6 0 3 ,1 8 6
8 8 2 ,0 3 5

5,017,448
3 ,8 4 8 ,3 8 5
37 3 ,6 0 3
7 9 5 ,4 6 0

8,477,029
8,3 5 3 ,1 1 5
7 7,177
4 6 ,7 3 7

1.458.622
1 .458.622
0
0

1.449.590
1 .449.590
0
0

9.032
9.032
0
0

159




LI ABI LITI ES OF BANKS

921,372,891

ASSETS AND

939,419,996

Cash, balances w ith o th e r banks, and cash item s in process
o f c o lle c t io n - t o t a l............................................................................
C urre ncy and c o i n .................................................................................
Reserve w ith Federal Reserve banks (m e m b e r b a n k s )...............
D em and balances w ith banks in U.S. (except A m erican
branches o f fo re ig n b a n k s ) ..........................................................
O th e r balances w ith banks in U n ite d S ta te s .................................
Balances w ith banks in fo re ig n c o u n t r i e s ......................................
Cash item s in process o f c o lle c t io n ..................................................

Insured banks

Asset, lia b ility , o r cap ita l a c co u n t item

Noninsured banks

Members of
Federal Reserve System

T o ta l
To ta l

Banks
of
d e p o s it1

N o n d ep osit
tru s t
com panies2

501,968,159
133 ,0 1 0 ,6 6 6

493,125,468
132,724,532

386,582,764
9 5 ,378,614

290,629,220
7 4 ,6 5 2 ,0 0 4

95,953,544
20 ,7 2 6 ,6 1 0

106,542,704
3 7 ,3 4 5 ,9 1 8

8,842,691
286,1 3 4

8,796,324
2 7 1,939

46,367
14,195

6,239,030

6,227,757

2,800,533

2^79,868

520,665

3,427,224

11,273

11,024

249

5,906,300
3,217,178
66,227,843

5,889,036
3,196,081
66,072,522

4,932,156
2,716,557
47,039,400

4,121,645
2,289,877
37,634,014

810,511
426,680
9,405,386

956,880
479,524
19,033,122

17,264
21,097
155,321

17,138
20,689
148,347

126
408
6,974

774,312
6,042,166
44,603,837

773,244
6,038,238
44,527,654

705,663
4,839,633
32,344,672

494,784
3,293,118
24,538,698

210,879
1,546,515
7,805,974

67,581
1,198,605
12,182,982

1,068
3,928
76,183

1,068
3,819
69,854

0
109
6,329

1 1,363,010
3 2 ,5 5 4 ,7 2 9
5 ,5 3 4 ,0 3 4
3 ,8 3 7 ,5 8 8
1 9 ,077,835
18 0 ,9 1 4 ,7 7 6
102,6 4 7 ,8 0 3

8,6 9 9 ,1 2 4
3 2 ,295,059
5,447,119
3,81 9 ,6 7 4
19,058,958
175,973,715
102,264,136

8,128,796
31,004,956
5,372,644
3,177,962
10,767,702
148,101,096
73,002,041

4 ,9 2 3 ,0 6 4
20 ,4 1 8 ,7 4 7
2 ,2 0 4 ,0 9 4
2 ,4 9 1 ,8 1 2
9 ,3 6 3 ,7 6 2
11 0,021,096
58,4 2 5 ,0 1 3

3 ,2 0 5 ,7 3 2
10,586,209
3 ,1 6 8 ,5 5 0
6 8 6 ,1 5 0
1 ,403,940
3 8 ,0 8 0 ,0 0 0
14,577,028

5 7 0,328
1,290,103
7 4,475
6 4 1 ,7 1 2
8,2 9 1 ,2 5 6
2 7 ,8 7 2 ,6 1 9
2 9 ,2 6 2 ,0 9 5

2 ,6 6 3 ,8 8 6
25 9 ,6 7 0
86,915
17,914
18,877
4,941,061
3 8 3 ,6 6 7

2 ,6 6 3 ,6 5 6
2 5 9 ,6 7 0
8 6,455
15,674
18,447
4 ,9 2 1 ,8 7 8
37 8 ,9 8 9

230
0
460
2,2 40
4 30
19,183
4,6 7 8

32,327,894

32,197,378

21,530,649

17,881,176

3,649,473

10,666,729

130,516

128,614

1,902

8288,062
2,611,019

8,287,949
2,610,428

7,402,504
2,161,847

6,009,235
1,334,779

1,393,269
827,068

885,445
448,581

113
591

113
591

0
0

8,810,077
6,629,825
5,712,364
15,608,594
22,659,968

8,803,902
6,591,561
5,695,624
15,528,497
22,548,797

6,340,282
4,324,815
4,087,319
10,617,520
16,537,105

5,410,997
3,666,953
3,311,761
8,197,916
12,612,196

929285
657,862
775,558
2,419,604
3,924,909

2,463,620
2,266,746
1,608,305
4,910,977
6,011,692

6,175
38,264
16,740
80,097
111,171

6,175
37,914
16,545
79233
109,804

0
350
195
864
1,367

A ll o th e r loans (in c lu d in g o v e rd ra fts ).....................................................

1 3,0 2 7 ,7 1 8

12,843,151

11,648,953

8 ,1 2 9 ,6 2 8

3 ,5 1 9 ,3 2 5

1,194,198

184,567

179,616

4,951

T o ta l loans and s e c u r itie s ....................................................................

754,279,537

741,052,629

565,316,955

430,555,552

134,761,403

175,735,674

13,226,908

12,982,110

244,798

Bank prem ises, fu r n itu r e and fix tu re s , and o th e r assets
representing b an k prem ises ...............................................................
Real estate ow ned o th e r tha n ba nk p re m is e s ......................................
Investm ents in subsidiaries n o t c o n s o lid a te d ......................................
C ustom ers' lia b ilitie s on acceptances o u t s ta n d in g ............................
O th e r a sse ts.....................................................................................................

15,0 5 8 ,4 5 7
1,287,502
1,821,945
9 ,4 7 6 ,5 4 4
2 7 ,9 7 0 ,6 3 3

14,990,177
1,271,270
1,798,105
9 ,229,767
2 7,143,626

11,254,257
952,869
1,777,410
8,996,812
24,397,405

9 ,0 3 2 ,3 3 4
60 8 ,1 6 9
1,375,606
5,7 3 8 ,0 1 0
1 7,062,606

2 ,2 2 1 ,9 2 3
3 4 4 ,7 0 0
4 0 1 ,8 0 4
3 ,2 5 8 ,8 0 2
7,3 3 4 ,7 9 9

3 ,7 3 5 ,9 2 0
318,401
2 0 ,695
23 2 ,9 5 5
2,746,221

6 8 ,2 8 0
16,232
2 3,840
246,777
827 ,0 0 7

52,830
2,176
22,211
2 46,777
75 2 ,2 0 8

15,450
14,056
1,629
0
74,799




CORPORATION

Credit cards and related plans:
Retail (charge account) credit card plans.................................
Check credit and revolving credit plans...................................
Other retail consumer instalment loans:
Mobile homes, not including travel trailers............................
Other retail consumer goods ........................................................
Residential repair and modernization instalment loans.............
Other instalment loans for personal expenditures.......................
Single-payment loans for personal expenditures.........................

T o ta l

INSURANCE

Loans to dom estic com m e rcia l and fore ig n b a n k s ............................
Loans to o th e r fin a n cia l i n s t it u t i o n s .....................................................
Loans to bro ke rs and dealers in s e c u r itie s ...........................................
O th e r loans fo r purchasing o r c a rryin g s e c u ritie s ..............................
Loans to fa rm e rs (e x c lu d in g loans on real e s ta te )..............................
C o m m ercial and in d u s tria l loans (in cl. open m a rk e t p a p e r ) ..........
Loans to in d iv id u a ls - t o t a l.........................................................................
Passenger automobile instalment loans...........................................

State

DEPOSIT

Secured by residential properties:
Secured by 1- to 4-family residential properties:
Insured by Federal Housing Administration....................
Guaranteed by Veterans Administration.........................
Not insured or guaranteed by FHA or V A .......................
Secured by multifamily (5 or more) residential properties:
Insured by Federal Housing Administration....................
Not insured by FHA .................................................................
Secured by other properties...............................................................

National

N ot
m embers
o f F.R .
System

FEDERAL

O the r l o a n s - t o t a l ................................................................................................
Real estate lo a n s - t o t a l................................................................................
Secured by farmland..............................................................................

Total

160

Table 106. ASSETS A N D L IA B IL IT IE S OF A L L COMM ERCIAL BANKS IN THE U N ITE D STATES (STATES A N D OTHER AREAS),
JUNE 30, 1975— CONTINUED
BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK
(Amounts in thousands of dollars)

T o ta l lia b ilitie s , reserves, and c a p ita l acco unts

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

939,419,996

921,372,891

720,018,018

540,230,305

179,787,713

201,354,873

18,047,105

17,628,525

418,580

Business and personal d e p o s it s - t o ta l.....................................................
In d iv id u a ls , p artn ersh ips, and c o r p o r a tio n s - d e m a n d ...............
In d iv id u a ls , p artn e rsh ips, and c o rp o ra tio n s - tim e .......................
Savings deposits................................................................................

620,319,030
233 ,3 1 8 ,8 2 5
374,724,331

614,779,060
232,252,896
3 71,047,099

461,518,686
177,891,151
2 7 4 ,1 1 1 ,8 9 0

357,226,226
135,537,491
2 1 5 ,1 3 6 ,0 7 5

104,292,460
4 2 ,3 5 3 ,6 6 0
5 8 ,9 7 5 ,8 1 5

153,260,374
5 4 ,3 6 1 ,7 4 5
9 6 ,9 3 5 ,2 0 9

5,539,970
1,065,929
3,6 7 7 ,2 3 2

5,526,761
1,062,117
3 ,6 6 7 ,8 8 5

13,209
3,812
9,347

152,750,742
341,215
221,632,374

152,394,853
334,869
218,317,377

109,210,222
259207
164,642,461

86,193,775
223,067
128,719,233

23,016,447
36,140
35,923,228

43,184,631
75,662
53,674,916

355,889
6,346
3,314,997

355,889
6,346
3,305,650

0
0
9,347

Deposits accumulated for payment of personal loans
Other deposits of individuals, partnerships, and corps....

11,479,065

9 ,5 1 5 ,6 4 5

6 ,5 5 2 ,6 6 0

2 ,9 6 2 ,9 8 5

1,963 ,4 2 0

796,809

796,759

50

70,716,385
3,141 ,8 3 6
523,403
1 8,505,087
4 8,5 4 6 ,0 5 9

70,271,455
3,121,236
508,729
18,348,699
48,292,791

50,518,666
2 ,1 7 0 ,1 7 7
3 5 9,746
1 3,119,342
3 4,869,401

40,772,171
1,727,674
319 ,3 4 3
10 ,493,244
2 8 ,2 3 1 ,9 1 0

9,746,495
4 4 2 ,5 0 3
4 0 ,4 0 3
2 ,6 2 6 ,0 9 8
6,6 3 7 ,4 9 1

19,752,789
9 5 1 ,0 5 9
148,983
5 ,2 2 9 ,3 5 7
13,4 2 3 ,3 9 0

444,930
2 0,600
14,674
156,388
25 3 ,2 6 8

444,863
20,533
14,674
156,388
25 3 ,2 6 8

67
67
0
0
0

D om estic in te rb a n k d e p o s i t s - t o t a l .......................................................
C om m ercial banks in the U n ite d S ta te s -d e m a n d ......................
C om m ercial banks in the U n ite d S ta te s -tim e ...........................
M u tua l savings banks in the U n ite d S ta te s - d e m a n d .................
M u tu a l savings banks in the U n ite d S ta te s -tim e ......................

44,898,009
3 4 ,4 1 7 ,6 4 5
8,549,264
1,279,677
651,423

44,285,201
3 4,091,930
8,411,761
1,151,473
6 30,037

42,296,856
3 2 ,8 8 0 ,8 4 6
7,7 4 7 ,9 9 6
1,056,926
6 1 1 ,0 8 8

24,317,554
17,653,737
5 ,711,683
558,789
39 3 ,3 4 5

17,979,302
15,227,109
2 ,0 3 6 ,3 1 3
4 9 8 ,1 3 7
2 1 7 ,7 4 3

1,988,345
1,211,084
6 6 3 ,7 6 5
94 ,5 4 7
18,949

612,808
32 5 ,7 1 5
137,503
128,204
21,386

608,836
32 1 ,7 4 3
137,503
128,204
21,386

3,972
3,972
0
0
0

Foreign g o v e rn m e n t and b a n k d e p o s i t s - t o t a l ...................................
Foreign govern m e n ts, ce ntral b a n k s -d e m a n d ..............................
Foreign govern m en ts, cen tral b a n k s - t i m e ...................................
Banks in fo re ig n c o u n tr ie s - d e m a n d ................................................
Banks in fo re ig n c o u n t r ie s - t im e .......................................................

24,489,558
1,555,584
1 3,450,483
6,8 4 7 ,3 2 4
2,636,167

22,096,452
1,310,848
12,887,644
6,082,403
1,815,557

21,740,597
1,280,405
1 2,714,885
5 ,9 7 3 ,1 0 4
1,772,203

11,763,492
6 0 1 ,7 0 0
6,9 5 9 ,5 7 9
2,947,051
1,255,162

9,977,105
6 7 8 ,7 0 5
5 ,7 5 5 ,3 0 6
3 ,0 2 6 ,0 5 3
517,041

355,855
30 ,4 4 3
172,759
109,299
4 3 ,3 5 4

2,393,106
24 4,736
562,839
764,921
82 0 ,6 1 0

2,393,005
244 ,6 3 5
562,839
764,921
8 2 0,610

101
101
0
0
0

T o ta l d e p o s its ...........................................................................
Demand ................................................................................
Time........................................................................................

760,422,982

751,432,168

576,074,805

434,079,443

141,995,362

175,357,363

8,990,814

8,973,465

17,349

311,341,852
449,081,130

307,838,550
443,593,618

243,887,596
332,187,209

176,072,346
258,007,097

67,815,250
74,180,112

63,950,954
111,406,409

3,503,302
5,487,512

3,495,300
5,478,165

8,002
9,347

M iscellaneous l i a b i l i t i e s - t o t a l .................................................................
Federal fu n d s purchased and securities sold u n d e r
agreements to repurchase...............................................................
O th e r lia b ilitie s fo r b o rro w e d m o n e y .............................................
M ortgage in d e b te d n e s s .........................................................................
Acceptances o u ts ta n d in g ....................................................................
O th e r lia b ilitie s ........................................................................................

103,083,724

94,759,699

86,376,613

63,376,055

23,000,558

8,383,086

8,324,025

8,121,634

202,391

5 6 ,624,920
6 ,239,136
77 6,068
10,076,225
2 9,36 7 ,3 7 5

54,932,269
4,479,781
774,034
9,82 1 ,5 2 4
24,752,091

52,183,871
4 ,1 5 0 ,2 6 7
55 1 ,0 2 2
9,5 8 8 ,5 4 8
1 9,902,905

3 8 ,6 2 3 ,5 8 3
3,3 3 0 ,4 5 2
4 1 5 ,3 2 9
5 ,774,712
1 5,231,979

1 3 ,5 6 0 ,2 8 8
8 1 9 ,8 1 5
135,693
3 ,8 1 3 ,8 3 6
4 ,6 7 0 ,9 2 6

2 ,7 4 8 ,3 9 8
3 2 9 ,5 1 4
22 3 ,0 1 2
2 32,976
4 ,8 4 9 ,1 8 6

1,692,651
1,759,355
2,034
254,701
4 ,6 1 5 ,2 8 4

1,692,651
1,735,922
483
254,701
4 ,4 3 7 ,8 7 7

0
23,433
1,551
0
177,407

T o ta l lia b ilitie s ...........................................................................

863,506,706

846,191,867

662,451,418

497,455,498

164,995,920

183,740,449

17,314,839

17,095,099

219,740

M in o r ity in te re st in c o n so lid a te d subsidiaries ...................................

4,739

3,956

1,185

1,166

19

2,771

783

0

783

Reserves on loans and s e c u r itie s - to ta l..................................................
Reserve fo r bad d e b t losses on lo a n s ................................................
O th e r reserves on lo a n s .........................................................................
Reserves on s e c u ritie s ...........................................................................

9,001,545
8,681,846
137,199
182,500

8,940,428
8,626,645
135,270
178,513

7,298,377
7,111,091
68 ,5 4 5
118,741

5,279,919
5 ,1 5 5 ,2 8 4
5 3 ,4 9 8
71 ,137

2,018,458
1,955,807
15,047
4 7 ,6 0 4

1,642,051
1,515,554
6 6 ,7 2 5
5 9,772

61,117
55,201
1,929
3 ,987

60,925
55,116
1,852
3,9 5 7

192
85
77
30




LI ABI LITI ES OF BANKS

1 2,275,874

G ove rn m e n t d e p o s it s - t o t a l......................................................................
U n ite d States G o v e rn m e n t-d e m a n d ................................................
U n ite d States G o v e r n m e n t- tim e .....................................................
States and p o litic a l s u b d iv is io n s -d e m a n d ......................................
States and p o litic a l s u b d iv is io n s - tim e ...........................................

ASSETS AND

C e rtifie d and o ffic e rs ' checks, lette rs o f c re d it, travelers'
checks, e tc...........................................................................................

Table 106. ASSETS A N D L IA B IL IT IE S OF A L L COMM ERCIAL BANKS IN THE U N ITE D STATES (STATES AN D OTHER AREAS),
JU N E 30, 1 97 5 — C O N T IN U E D
BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK
(Amounts in thousands of dollars)
Noninsured banks

Insured banks

T otal
T otal

N ational

T otal

Banks
of
d e p o s it1

N on de po sit
tru s t
com panies2

66,236,640
4,318,261
6 1,918,379

50,267,038
3,467,019
4 6,800,019

37,493,722
2 ,2 6 4 ,4 3 3
3 5 ,2 2 9 ,2 8 9

12,773,316
1,202,586
1 1,570,730

15,969,602
8 5 1 ,2 4 2
1 5 ,118,360

670,366
134,246
5 36 ,1 2 0

472,501
134,151
3 3 8 ,3 5 0

197,865
95
1 97,770

50,449
15,243,604
26,074,068
20,114,572
971,806

42,495
15,143,526
25,904,657
19,914,313
913,388

23,556
11,188,761
19,504,642
15,444,770
638J90

12,926
8,504,393
14,370,026
11,843,845
498,099

10,630
2,684,368
5,134,616
3,600,925
140,191

18,939
3,954,765
6,400,015
4,469,543
275,098

7,954
100,078
169,411
200J59
58,418

7,580
52,023
133J318
92,752
52,077

374
48,055
35,493
107,507
6,341

PERCENTAGES

13.8%

13.7%

14.9%

14.0%

17.5%

20.2%

20.3%

16.2%

10.5
12.2

10.6
12.2

9.3
11.5

9.7
11.8

8.2
10.6

15.3
14.8

4.4
11.8

4.4
11.1

5.0
40.3

57.6
5.9
7.2

57.6
5.9
7.2

57.7
6.6
7.0

58.2
6.3
7.0

56.2
7.5
7.1

57.1
3.5
7.9

57.1
6.6
13.3

58.1
6.1
8.4

13.2
25.3
47.3

15.94

10.04

58.3

265

191

9.2%

Of to ta l assets o th e r th a n cash and U.S. Treasury securities:
T o ta l capital a ccounts3................................................................................

9.1

9.1

8.9

8.8

9.3

9.7

N u m b e r o f banks ...............................................................................................

14,597

14,332

5,796

4,732

1,064

8,536

74

1 1ncludes asset and lia b ility figures fo r branches o f fo re ig n banks (ta b u la te d as banks) licensed to do a deposit business. Capital is n o t allocated to these branches by the p a re n t banks.
2 A m o u n ts show n as deposits are special accounts and uninvested tru s t fu n d s, w ith the la tte r classified as demand deposits o f individuals, partnerships, and c o rp o ra tio n s.
3 O nly asset and lia b ility data are included fo r branches located in " o th e r areas” o f banks headquartered in one of the 50 States; because no capital is allocated to these branches, they are excluded fro m the co m p u ta tio n o f
ratios o f cap ita l accounts to assets.
4 Data fo r branches o f fo re ig n banks referred to in fo o tn o te 2 have been e xcluded in c o m p u tin g this ra tio fo r noninsured banks o f deposit and in to ta l colum ns.
N o te : F u rth e r in fo rm a tio n on the reports o f assets and lia b ilitie s o f banks m ay be fo u n d on pp. 157-158.




CORPORATION

O f to ta l assets:
Cash and balances w ith o th e r b a n k s .......................................................
U.S. Treasury securities and o b lig a tio n s o f o th e r
U.S. G o ve rn m e n t agencies and c o rp o ra tio n s .................................
O th e r s e c u r itie s .............................................................................................
Loans (in c lu d in g Federal funds sold and)securities
purchased und e r agreements to r e s e l l) ...........................................
O ther a s se ts....................................................................................................
T o ta l cap ita l acco u n ts3 ..............................................................................

INSURANCE

66,907,006
4 ,4 5 2 ,5 0 7
6 2 ,4 5 4 ,4 9 9

DEPOSIT

C apital a c c o u n t s - t o t a l .....................................................................................
C apital notes and d e b e n tu re s ....................................................................
E q u ity c a p i t a l - t o t a l ...................................................................................
Preferred stock........................................................................................
Common stock........................................................................................
Surplus.......................................................................................................
Undivided profits...................................................................................
Reserve for contingencies and other capital reserves..................

State

To ta l

FEDERAL

Asset, iia b ility , o r ca p ita l a cco u n t item

Not
mem bers
o f F .R .
System

M embers of
Federal Reserve System

Table 107. ASSETS A N D L IA B IL IT IE S OF A L L COMM ERCIAL BANKS IN THE U N ITE D STATES (STATES AN D OTHER AREAS),
D E C E M B E R 3 1, 1975
BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK
(Amounts in thousands of dollars)
Insured banks

Asset, lia b ility , o r cap ita l acco u n t item

N oninsure d banks

Members of
Federal Reserve System
T o ta l

N ational

State

N ot
members
of F.R.
System

Total
Total

T o ta l a s s e ts ............................................................................................................

T o ta l

Banks
of
d e p o s it1

N o ndeposit
tru s t
com panies2

738,248,106

557,753,036

180,495,070

214,202,905

22,259,576

21,850,105

409,471

134,513,617
12,373,608
26,7 7 9 ,9 7 5

129,024,072
12,355,374
2 6,779,975

108,632,602
9 ,2 8 0 ,4 4 8
2 6 ,7 7 9 ,9 7 5

78,181,403
7 ,1 5 5 ,6 5 9
20 ,9 0 8 ,0 6 8

30,451,199
2,1 2 4 ,7 8 9
5,8 7 1 ,9 0 7

20,391,470
3 ,0 7 4 ,9 2 6
0

5,489,545
18,234
0

5,455,607
18,101
0

33,938
133
0

34,9 7 5 ,0 5 6
9,0 7 1 ,0 9 5
3 ,8 8 8 ,6 7 2
47,425,211

3 2,168,464
7,566,509
2,820,929
47,332,821

1 9,393,569
5 ,1 9 3 ,0 2 8
2,380,531
45,6 0 5 ,0 5 1

1 2,957,306
4 ,5 3 5 ,0 3 3
1,289,681
3 1 ,3 3 5 ,6 5 6

6,4 3 6 ,2 6 3
6 5 7 ,9 9 5
1,090,850
1 4 ,269,395

1 2,774,895
2 ,373,481
4 4 0 ,3 9 8
1,727,770

2 ,8 0 6 ,5 9 2
1,504,586
1,067,743
92,3 9 0

2 ,7 7 5 ,3 8 4
1 ,503 ,9 64
1,067,71 2
90 ,4 4 6

3 1,2 0 8
622
31
1,944

S e c u r it ie s - t o t a l.............................................................................................
U.S. T re asu ry s e c u r it ie s ......................................................................
O b lig a tio n s o f o th e r U.S. G o v e rn m e n t agencies and corps . . .
O b lig a tion s o f States and p o litic a l subdivisions .........................
O the r securities .....................................................................................

230,796,642
8 4 ,535,194
3 4 ,4 7 9 ,6 4 2
102,706,000
9,075 ,8 0 6

227,847,169
83,986,977
3 4 ,010,116
101,943,925
7,906,151

162,205,685
6 1,523,861
2 1 ,1 8 8 ,4 9 9
74,0 8 3 ,2 7 3
5,4 1 0 ,0 5 2

125,408,604
4 6 ,8 0 4 ,2 4 4
1 7,248,309
5 7 ,1 6 4 ,1 4 0
4,1 9 1 ,9 1 1

36,797,081
14,719,617
3 ,9 4 0 ,1 9 0
16,919,133
1,218,141

65,641,484
2 2,4 6 3 ,1 1 6
12,821,617
2 7 ,8 6 0 ,6 5 2
2 ,4 9 6 ,0 9 9

2,949,473
5 4 8,217
4 6 9 ,5 2 6
7 6 2,075
1,169,655

2,820,016
526,131
4 5 6 ,7 9 2
7 1 4 ,4 6 7
1,122,6 2 6

129,457
2 2,086
12,734
4 7 ,60 8
47,0 29

In v e s tm e n t s e c u r itie s - to ta l ..............................................................
U.S. Treasury securities.................................................................

225,458,721

222,515,186

1 5 7,023,926

121,8 8 9 ,8 0 2

3 5 ,1 3 4 ,1 2 4

6 5 ,4 9 1 ,2 6 0

2,9 4 3 ,5 3 5

2 ,8 1 4 ,0 8 6

129,449

81,553,289
33,768,194
101,563,552
8,573,686

81,011,010
33,298,668
100,801,477
7,404,031

58,665,936
20,490^52
72,953,037
4,914,701

44,810,555
16,789,934
56,362,996
3,926,317

13,855,381
3,700,318
16,590,041
988,384

22,345,074
12,808,416
27,848,440
2,489,330

542,279
469,526
762,075
1,169,655

520,201
456,792
714,467
1,122,626

22,078
12,734
47,608
47,029

150,224
7 18,042

Obligations of other U.S. Government agencies and corps.
Obligations of States and political subdivisions....................
Other securities................................................................................
T ra d in g a cco u n t s e c u ritie s -to ta l ....................................................
U.S. Treasury securities.................................................................

5,337,921

5,331,983

5,181,759

3 ,5 1 8 ,8 0 2

1,662,957

Obligations of other U.S. Government agencies and corps.
Obligations of States and political subdivisions....................
Other securities................................................................................

2,981,905
711,448
1,142,448
502,120

2,975,967
711,448
1,142,448
502,120

2,857,925
698,247
1,130,236
495,351

1,993,689
458,375
801,144
265,594

864,236
239,872
329,092
229,757

Federal fu n d s sold and securities purchased u n d e r agreements
to r e s e l l- t o t a l ...................................................................................
W ith dom estic com m e rcia l b a n k s ....................................................
W ith brokers and dealers in s e c u ritie s .............................................
W ith others .............................................................................................

39,272,229
34 ,1 1 5 ,3 0 0
3 ,701 ,7 5 4
1 ,455,175

37,345,238
3 2,188,309
3 ,701,754
1,455,175

29,129,553
24,0 8 3 ,1 5 2
3 ,6 4 6 ,1 7 4
1,400,227

23,296,017
19,16 3 ,4 4 7
3 ,1 4 9 ,0 0 5
9 8 3 ,5 6 5

5,833,536
4,9 1 9 ,7 0 5
49 7 ,1 6 9
4 1 6 ,6 6 2

5.930

8

5.938
0
0
0

5.930
0
0
0

8
O
0
0

8,215,685
8 ,1 0 5 ,1 5 7
55,580
54,948

1.926.991
1.926.991
0
0

1.878.776
1.878.776
0
0

48.215
48.215
0
0

163




5.938

13,201
12,212
6,769

LI ABI LITI ES OF BANKS

952,451,011

ASSETS AND

974,710,587

Cash, balances w ith o th e r banks, and cash item s in process o f
c o l l e c t i o n - t o t a l ..............................................................................
C urre ncy and c o i n ................................................................................
Reserve w ith Federal Reserve banks (m e m b e r banks) ............
D em and balances w ith banks in U.S. (except A m erican
branches o f fo re ig n b a n k s .) .........................................................
O th e r balances w ith banks in U n ite d S ta te s ................................
Balances w ith banks in fo re ig n c o u n t r i e s .....................................
Cash item s in process o f c o lle c tio n ...............................................

164

Table 107. ASSETS A N D L IA B IL IT IE S OF A L L COMM ERCIAL BANKS IN THE U N ITE D STATES (STATES A N D OTHER AREAS),
D E C EM BE R 31, 1 9 7 5 -C O N T IN U E D
BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK
(Amounts in thousands of dollars)
N oninsure d banks

Insured banks

Asset, lia b ility , o r ca pita l acco u n t item

Mem bers o f
Federal Reserve System

T o ta l
T o ta l

Banks
of
d e p o s it1

N on d e p o s it
tru s t
c o m p an ies2

512,466,050
136,4 5 7 ,9 9 4

502,289,682
136,186,930

389,955,184
97,0 4 9 ,8 6 4

294,965,448
7 6 ,1 1 1 ,4 8 8

94,989,736
2 0 ,9 3 8 ,3 7 6

112,334,498
3 9 ,1 3 7 ,0 6 6

10,176,368
2 7 1,064

10,132,449
25 8 ,9 1 5

43,919
12,149

6,383,414

6,370,913

2,835,794

2,328,911

506,883

3,535,119

12,501

12,188

313

5,779,837
3,133,632
68,302,396

5,761,362
3,108,439
68,149,590

4,838,342
2,615,458
48,064,611

4,051,510
2,203,878
38,477,766

786,832
411,580
9,586,845

923,020
492,981
20,084,979

18,475
25,193
152,806

18,375
25,021
145,594

100
172
7,212

514,540
5,405,954
46,938,221

513,947
5,401,104
46,881,575

457,423
4,156,010
34,082,226

273,764
2,620,299
26,155,360

183,659
1,535,711
7,926,866

56,524
1,245,094
12,799,349

593
4,850
56,646

593
4,742
52,402

0
108
4,244

12,780,896
29,7 4 8 ,1 4 6
7,17 5 ,0 2 5
3,918,181
2 0 ,1 6 4 ,5 2 7
181,03 0 ,5 2 8
1 0 7,617,366

9 ,5 5 6 ,7 1 4
29,409,991
7 ,055,262
3 ,8 2 4 ,3 8 0
2 0,135,056
175,922,939
1 0 6,819,480

8,688,537
2 8,136,454
6,964,173
3,193,037
11,244,192
146,867,431
7 5,787,575

5 ,3 0 9 ,6 4 0
18,5 9 7 ,9 4 0
3 ,3 0 5 ,8 4 5
2 ,5 5 1 ,0 7 6
9 ,7 9 2 ,9 5 5
1 1 0,033,586
6 0 ,9 0 3 ,5 2 9

3 ,3 7 8 ,8 9 7
9 ,5 3 8 ,5 1 4
3 ,6 5 8 ,3 2 8
641,961
1,451,237
3 6 ,8 3 3 ,8 4 5
14,884,046

868,1 7 7
1,273,537
9 1,089
6 3 1 ,3 4 3
8 ,8 9 0 ,8 6 4
2 9 ,0 5 5 ,5 0 8
3 1 ,0 3 1 ,9 0 5

3 ,2 2 4 ,1 8 2
3 38,1 5 5
119,763
93,801
29,471
5,107,589
797,886

3 ,2 2 4 ,1 8 2
3 3 8 ,1 5 5
119,25 8
91 ,0 0 6
2 8 ,75 9
5 ,0 8 6 ,0 6 6
7 9 2 ,9 75

0
0
505
2 ,79 5
712
21,5 23
4,911

33,989,669

33,455,998

22,105,578

18,353,408

3,752,170

11,350,420

533,671

531,768

1,903

9,552,062
2,827,834

9,551^55
2,827,207

8,520,475
2,339,956

6,967,052
1,474,614

1,553,423
865,342

1,030,780
487,251

807
627

807
627

0
0

8,723,153
6,764,778
5,970,570
16,534,966
23,254,334

8,720,369
6,720,411
5,955,100
16,455,919
23,133,221

6,276,205
4,342,782
4,202,738
11^75,456
16,724,385

5,367,731
3,663,038
3,404,680
8,925,331
12,747,675

908,474
679,744
798,058
2,350,125
3,976,710

2,444,164
2,377,629
1,752,362
5,180,463
6,408,836

2,784
44,367
15,470
79,047
121,113

2,784
44,017
15,275
77,903
119,794

0
350
195
1,144
1,319

A ll o th e r loans (in c lu d in g o v e rd ra fts ).....................................................

13,573,387

13,378,930

12,023,921

8 ,3 5 9 ,3 8 9

3 ,6 6 4 ,5 3 2

1,355,009

194,457

193,133

1,324

T o ta l loans and s e c u r itie s .............................................................

782,534,921

767,482,089

581,290,422

443,670,069

137,620,353

186,191,667

15,052,832

14,831,241

221,591




CORPORATION

Credit cards and related plans:
Retail (charge account) credit card p la n s ..............................
Check credit and revolving credit plans...................................
Other retail consumer instalment loans:
Mobile homes, not including travel trailers............................
Other retail consumer goods .......................................................
Residential repair and modernization instalment loans.............
Other instalment loans for personal expenditures.......................
Single-payment loans for personal expenditures.........................

T o ta l

INSURANCE

Loans to do m e stic co m m e rc ia l and fo re ig n b a n k s ............................
Loans to o th e r fin a n c ia l i n s t it u t i o n s .....................................................
Loans to bro k e rs and dealers in s e c u r itie s ...........................................
O th e r loans f o r pu rchasing o r c a rry in g s e c u r itie s ..............................
Loans to farm e rs (e x c lu d in g loans on real estate) ............................
C om m ercial and in d u s tria l loans (in c l. open m a rk e t p a p e r ) ..........
Loans to in d iv id u a ls - t o t a l.........................................................................
Passenger automobile instalment loans...........................................

State

DEPOSIT

Secured by residential properties:
Secured by 1- to 4 - family residential properties:
Insured by Federal Housing Administration....................
Guaranteed by Veterans Administration.........................
Not insured or guaranteed by FHA or V A .......................
Secured by multifamily (5 or more) residential properties:
Insured by Federal Housing Administration....................
Not insured by F H A ...............................................................
Secured by other properties...............................................................

N ational

FEDERAL

O th e r l o a n s - t o t a l ................................................................................................
Real estate l o a n s - t o t a l ..............................................................................
Secured by farmland..............................................................................

T otal

N ot
m em bers
o f F.R.
System

Bank prem ises, fu r n itu r e and fix tu re s , and o th e r assets
representing bank p re m is e s ..........................................................
Real estate ow ned o th e r th an ba n k p re m is e s .....................................
In vestm e nts in subsidiaries n o t c o n s o lid a te d ......................................
C ustom ers' lia b ilitie s on acceptances o u ts ta n d in g ............................
O th e r a s s e ts ....................................................................................................

15,675,411
1,926,745
2,017,593
8,970,175
2 9 ,072,125

15,598,230
1,908,880
1,992,754
8 ,687,996
27,756,990

T o ta l lia b ilitie s , reserves, and c a p ita l acco unts ........................................

974,710,587

952,451,011

Business and personal d e p o s its - to ta l.....................................................
In d ivid u a ls, partnerships, and c o rp o r a tio n s - d e m a n d ...............
In d iv id u a ls , pa rtn ersh ips, and c o rp o ra tio n s — tim e ....................
Savings deposits ..............................................................................

652,931,404
2 4 7,919,255
3 9 3 ,3 6 6 ,7 1 4

645,305,033
246,710,621
387,848,833

161,150,232
284,477
231,932,005

160,716,975
280,452
226,851,406

Deposits accumulated for payment of personal loans
Other deposits of individuals, partnerships, and corps ...

11,607,346
1,498,926
1,969,982
8,427,539
2 4 ,8 2 1 ,2 8 9

9 ,3 3 9 ,8 4 6
1,035,809
1,528,541
5,0 0 6 ,6 2 9
1 8,990,739

2 ,2 6 7 ,5 0 0
46 3 ,1 1 7
441,441
3 ,4 2 0 ,9 1 0
5 ,8 3 0 ,5 5 0

3 ,9 9 0 ,8 8 4
4 0 9 ,9 5 4
22,772
260,4 5 7
2,935,701

77,181
17,865
24,839
282,179
1,315,135

6 1,253
3 ,615
22,449
2 82,179
1,193,761

15,928
14,250
2,390
0
121,374

738,248,106

557,753,036

180,495,070

214,202,905

22,259,576

21,850,105

409,471

481,402,390
188,206,603
284 ,6 3 5 ,3 4 9

372,851,693
143,43 5 ,0 5 7
2 2 3 ,4 9 5 ,0 6 0

108,550,697
4 4 ,7 7 1 ,5 4 6
6 1 ,1 4 0 ,2 8 9

163,902,643
5 8 ,5 0 4 ,0 1 8
103,21 3 ,4 8 4

7,626,371
1,208,634
5,517,881

7,608,875
1,204,274
5 ,5 0 4 ,7 7 4

17,496
4,360
13,107

114,410,189
222,575
170,002,585

90,574,034
188,002
132,733,024

23,836,155
34,573
37,269,561

46,306,786
57,877
56,848,821

433,257
4,025
5,080,599

433257
4,025
5,067,492

0
0
13,107

10,745,579

8,5 6 0 ,4 3 8

5,9 2 1 ,5 7 6

2 ,6 3 8 ,8 6 2

2,185,141

8 9 9,856

899,827

29

71,097,950
3 ,147,074
594,713
19,025,310
48 ,3 3 0 ,8 5 3

70,704,640
3,126,532
588,481
18,879,179
4 8 ,1 1 0 ,4 4 8

50,293,284
2,259,731
461,8 3 2
13,107,132
34 ,4 6 4 ,5 8 9

40,637,892
1,792,980
4 0 5 ,3 2 8
1 0,434,058
2 8 ,0 0 5 ,5 2 6

9,655,392
46 6 ,7 5 1
56,5 0 4
2 ,6 7 3 ,0 7 4
6 ,4 5 9 ,0 6 3

20,411,356
866,801
126,649
5 ,7 7 2 ,0 4 7
13,645,859

393,310
2 0 ,542
6,232
146,131
22 0 ,4 0 5

393,284
2 0,516
6,2 3 2
146,131
2 2 0,405

26
26
0
0
0

D om estic in te rb a n k d e p o s i t s - t o t a l .......................................................
C om m ercial banks in th e U n ite d S ta te s -d e m a n d ......................
C om m e rcia l banks in th e U nited S ta te s - tim e ..............................
M utua l savings banks in the U n ite d S ta te s -d e m a n d .................
M u tua l savings banks in the U n ite d S ta te s -tim e ......................

45,308,101
33 ,8 0 9 ,8 0 4
9 ,655,353
1,325,146
517,7 9 8

44,280,973
33,491,673
9,129,775
1,159,714
499,811

42,041,498
32 ,0 6 8 ,0 6 0
8,42 0 ,2 5 4
1,062,857
4 9 0 ,3 2 7

26,164,808
1 9,017,388
6 ,3 6 0 ,1 1 0
4 8 4 ,5 3 0
3 0 2 ,7 8 0

15,876,690
1 3 ,050,672
2 ,0 6 0 ,1 4 4
578 ,3 2 7
187,547

2,239,475
1,423,613
709,521
96 ,8 5 7
9 ,4 8 4

1,027,128
318,131
52 5 ,5 7 8
165,432
17,987

1,025,891
3 1 6 ,8 9 4
5 2 5,578
165,432
17,987

1,237
1,237
0
0
0

Foreign g ove rn m e n t and ba n k d e p o s i t s - t o t a l ...................................
Foreign governm ents, cen tra l b a n k s -d e m a n d ..............................
Foreign g overnm ents, cen tra l b a n k s - t i m e ...................................
Banks in fo re ig n c o u n trie s — d e m a n d ................................................
Banks in fore ig n c o u n tr ie s - tim e .....................................................

23,544,467
1,858,879
12,425,754
6,724,421
2,535,413

20,458,022
1,659,374
11,374,159
5 ,649,939
1,774,550

19,980,100
1,610,364
11,186,931
5,45 9 ,2 8 2
1,723,523

10,653,630
709,6 3 7
5 ,8 6 1 ,8 1 9
2 ,8 2 3 ,2 0 4
1,258,970

9,326,470
9 0 0 ,7 2 7
5 ,3 2 5 ,1 1 2
2 ,6 3 6 ,0 7 8
4 6 4 ,5 5 3

477,922
4 9 ,0 1 0
187,228
190,657
51,027

3,086,445
199,505
1,051,595
1,074,482
7 6 0,863

3,086,389
199,449
1,051,595
1,074,482
760,863

56
56
0
0
0

T o ta l d e p o s its ...........................................................................
Demand ................................................................................
Time........................................................................................

7 92,8 8 1 ,9 2 2

7 80,748,668

5 9 3 ,7 1 7 ,2 7 2

4 5 0 ,3 0 8 ,0 2 3

1 4 3,409,249

187,031,396

1 2,133,254

1 2,114,439

18,815

325,455,324
467,426,598

321,422,611
459,326,057

252,334,467
341,382,805

184,618,430
265,689,593

67,716,037
75,693,212

69,088,144
117,943,252

4,032,713
8,100,541

4,027,005
8,087,434

5,708
13,107

M isce llaneous l i a b i l i t i e s - t o t a l .................................................................
Federal fun d s purchased and securities sold u n d e r
agreements to r e p u rc h a s e ............................................................
O ther lia b ilitie s fo r b o rro w e d m o n e y .............................................
Mortgage in d e b te d n e s s .........................................................................
Acceptances o u t s ta n d in g ....................................................................
O ther lia b ilitie s .....................................................................................

103,272,838

93,970,964

85,151,316

63,207,126

21,944,190

8,819,648

9,301,874

9,125,117

176,757

5 3,875,587
6 ,66 7 ,3 9 3
776,724
9,6 3 3 ,8 0 5
32 ,319,329

52,190,147
4,65 1 ,0 5 0
7 74,094
9,275,803
2 7,079,870

4 9 ,3 0 4 ,8 9 7
4 ,3 4 1 ,5 6 2
549,206
9 ,0 1 5 ,3 4 4
2 1,9 4 0 ,3 0 7

38,0 4 9 ,0 0 1
2 ,8 2 6 ,1 4 6
4 2 1 ,5 5 7
5,0 5 8 ,9 9 3
1 6,851,429

1 1,255,896
1,515,416
127,649
3,9 5 6 ,3 5 1
5 ,0 8 8 ,8 7 8

2 ,8 8 5 ,2 5 0
3 0 9 ,4 8 8
224 ,8 8 8
260,4 5 9
5,1 3 9 ,5 6 3

1,685,440
2,01 6 ,3 4 3
2,630
3 5 8 ,0 0 2
5 ,239,459

1 ,685,440
1,987,927
804
3 5 8 ,0 0 2
5 ,0 9 2 ,9 4 4

0
28,416
1,826
0
146,515

T o ta l lia b ilitie s ...........................................................................

896,154,760

874,719,632

678,868,588

513,515,149

165,353,439

195,851,044

21,435,128

21,239,556

195,572

M in o rity in te re st in c o n s o lid a te d su bsidiaries......................................

5,293

4,470

1,383

1,383

0

3,087

823

0

823

165




LIABI LITIES OF BANKS

11,645,435

G o v e rn m e n t d e p o s it s - t o t a l......................................................................
U n ite d States G o v e rn m e n t-d e m a n d ................................................
U n ite d States G o v e r n m e n t- tim e .....................................................
States and p o litic a l s u b d iv is io n s -d e m a n d ......................................
States and p o litic a l s u b d iv is io n s - tim e ...........................................

ASSETS AND

C e rtifie d and o ffic e rs ' checks, le tte rs o f c re d it, travelers'
checks, e tc...........................................................................................

166

Table 107. ASSETS A N D L IA B IL IT IE S OF A L L COMM ERCIAL BANKS IN THE U N ITED STATES (STATES A N D OTHER AREAS),
D EC EM B E R 31, 1 9 7 5 -C O N T IN U E D
BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK
(Amounts in thousands of dollars)
Noninsured banks

Insured banks

T o ta l
T o ta l
Total

N ational

State

Not
members
of F.R.
System

To ta l

Banks
of
d e p o s it1

N on de po sit
tru s t
c o m panies2

9,010,387
8 ,654,714
169,113
186,560

7,294,187
7,078,732
92,230
123,225

5,257,296
5,107,451
76,006
7 3,839

2,036,891
1,971,281
16,224
4 9 ,3 8 6

1,716,200
1,575,982
76,883
6 3 ,3 3 5

75,876
67,6 4 5
5,751
2 ,480

75,442
67,30 9
5,683
2 ,4 50

434
336
68
30

C apital a c c o u n ts - to ta l ..............................................................................
Capital notes and d e b e n tu r e s ............................................................
E q u ity c a p i t a l- t o t a l ..............................................................................
Preferred stock ................................................................................
Common stock ................................................................................
Surplus ...............................................................................................
Undivided profits...........................................................................
Reserve for contingencies and other capital reserves..........

69,464,271
4 ,5 7 8 ,1 3 5
6 4 ,8 8 6 ,1 3 6

68,716,522
4,4 0 7 ,8 9 2
6 4 ,3 0 8 ,6 3 0

52,083,948
3,494,058
4 8 ,5 8 9 ,8 9 0

38,979,208
2 ,291,322
3 6 ,6 8 7 ,8 8 6

13,104,740
1,202,736
1 1,902,004

16,632,574
9 1 3 ,8 3 4
1 5 ,718,740

747,749
170,243
577,506

535,107
170,147
3 6 4 ,9 6 0

212,642
96
212,546

53,872
15,678,547
26,886,013
21,381,203
886,501

47,881
15,565,026
26,712,935
21,182,330
800,458

28,092
11,499,499
19,979,645
16,566,197
516,457

13,962
8,809,330
14,718,169
12,781,762
364,663

14,130
2,690,169
5^61,476
3,784,435
151,794

19,789
4,065,527
6,733,290
4,616,133
284,001

5,991
113,521
173,078
198,873
86,043

5,613
64,097
134,036
88,830
72,384

378
49,424
39,042
110,043
13,659

PERCENTAGES
O f to ta l assets:
Cash and balances w ith o th e r b a n k s .......................................................
U.S. Treasury securities and o blig a tio n s o f o th e r
U.S. G o ve rn m e n t agencies and c o r p o ra tio n s .................................
O the r s e c u r itie s .............................................................................................
Loans (in c lu d in g federal fu n d s sold and securities
purchased u n d e r agreem ents to rese ll).............................................
O th e r a s s e ts ....................................................................................................
T o ta l cap ita l a c co u nts3................................................................................

13.5%

14.7%

14.0%

16.9%

24.7%

25.0%

11.8
11.8

12.0
11.9

10.7
11.2

11.0
11.4

9.7
10.7

16.4
14.2

4.5
8.7

4.5
8.4

8.5
23.1

56.6
5.9
7.3

56.7
5.9
7.3

56.8
6.5
7.1

57.1
6.4
7.0

55.9
6.9
7.3

56.3
3.6
7.8

54.4
7.7
14.1

55.0
7.2
8.6

22.5
37.6
51.9

9.5%

Of to ta l assets o th e r th a n cash and U.S. T reasury securities:
T o ta l capital acco u n ts3 ..............................................................................

9.3

9.3

9.2

9.1

9.6

9.7

N um b e r o f b a n ks..................................................................................................

14,657

14,384

5,790

4,7 4 4

1,046

8,594

1< 2 - 3 - 4 See notes to table 106.
N ote: F u rth e r in fo rm a tio n on the re p o rt o f assets and lia b ilitie s o f banks m ay be fo u n d on pp. 157-158.




8.3%

13.8%

1 6 .14

9 .9 4

273

195

60.2
78

INSURANCE CORPORATION

9,086,263
8 ,722,359
174,864
189,040

DEPOSIT

Reserves on loans and s e c u r itie s - t o t a l...................................................
Reserve fo r bad d e b t losses on lo a n s ................................................
O th e r reserves on lo a n s .........................................................................
Reserves on securities .........................................................................

FEDERAL

Asset, lia b ility , o r capital a c co u n t item

Mem bers of
Federal Reserve System

Table 108. ASSETS A N D L IA B IL IT IE S OF A L L M U T U A L SAVINGS BANKS IN THE U N ITE D STATES (STATES A N D OTHER A R EAS),
JU N E 30, 1975, A N D D E C E M B E R 31, 1975
BANKS GROUPED BY INSURANCE STATUS
(Amounts in thousands of dollars)
June 30, 1975

Decem ber 31, 1975

Asset, lia b ility , or surplus acco u n t item
T o ta l

Insured

N oninsured

T o ta l a s s e ts ..........................................................................................................................................................

116,774,352

102,273,237

14,501,115

121,070,592

107,280,765

13,789,827

Cash, balances w ith banks, and c o lle c tio n it e m s - t o t a l...................................................................
C urrency and c o i n ...............................................................................................................................
D em and balances w ith banks in the U n ite d S ta te s ..................................................................
O ther balances w ith banks in the U n ite d S ta te s .......................................................................
Cash item s in process o f c o lle c tio n .................................................................................................

2,127,297
26 5 ,8 4 8
5 92,626
1,132,441
136,382

1,953,878
220,752
500,1 0 0
1,116,382
116,644

173,419
4 5,096
9 2 ,526
16,059
1 9,738

2,347,385
36 0 ,6 6 4
787,661
1 ,095,534
103,526

2,195,390
3 0 8 ,8 8 7
7 0 6,116
1,091,274
89,113

151,995
51,777
81,545
4,260
14,413

S e c u r itie s - to ta l...........................................................................................................................................
U n ite d States G o v e rn m e n t and agency securities— t o t a l ........................................................
Securities maturing in 1 year or less ......................................................................................
Securities maturing in 1 to 5 years .........................................................................................
Securities maturing in 5 to 10 years ......................................................................................
Securities maturing after 10 years............................................................................................

31,336,987
9 ,2 1 5 ,6 5 8

27,472,586
8,0 3 4 ,9 9 3

3,864,401
1,180,665

34,221,545
10,7 9 8 ,8 5 0

30,421,034
9 ,4 6 8 ,6 8 2

3,800,511
1,330,168

1,051,030
2,926,357
1,229,852
4,008,419

805,466
2,358,443
1,040,104
3,830,980

245,564
567,914
189,748
177,439

1,599,108
3,406,838
1,383,830
4,409,074

1,312,116
2,761242
1,167,218
4,228,106

286,992
645,596
216,612
180,968

C orporate b o n d s ....................................................................................................................................
State, c o u n ty , and m u nicipal o b lig a tio n s ....................................................................................
O ther bonds, notes, and d e b e n tu re s ..............................................................................................

13,771,152
1,277,611
2 ,7 8 6 ,1 2 6

1 2,490,307
1,162,986
2,226,101

1,280,845
114,625
560,025

1 4 ,685,540
1,549,892
2 ,8 8 2 ,4 1 8

13,503,561
1,488,631
2 ,3 2 9 ,6 8 5

1,181,979
61,261
552,733

C orporate s to c k — t o t a l .......................................................................................................................
Bank ...................................................................................................................................................
Other ................................................................................................................................................

4 ,2 8 6 ,4 4 0

3 ,5 5 8 ,1 9 9

728,241

4 ,3 0 4 ,8 4 5

3 ,6 3 0 ,4 7 5

674 ,3 7 0

526,189
3,760,251

350,638
3,207,561

175,551
552,690

528,884
3,775,961

374,851
3255,624

154,033
520,337

1,730,266

1,412,056

318,210

1,107,953

897,063

210,890

O the r lo a n s - to ta l ......................................................................................................................................
Real estate l o a n s - t o t a l.......................................................................................................................
Construction loans .......................................................................................................................
Secured by farmland.....................................................................................................................

78,601,183
7 5 ,7 9 5 ,5 7 8

68,724,769
6 6 ,3 8 2 ,7 4 0

9,876,414
9 ,4 1 2 ,8 3 8

80,154,302
7 7 ,2 4 9 ,3 1 3

70,812,040
6 8 ,3 7 1 ,8 5 9

9,342,262
8 ,8 77 ,4 54

882,834
51,598

744,954
38J83

137,880
13,315

930,601
59,408

824,494
48,239

106,107
11,169

12,823,316
12,548,306
23,863,313

11,861,140
11,395,215
18,903,200

962,176
1,153,091
4,960,113

12,424,873
12,390,708
25,000,106

11,587,451
11,342,670
20,123,915

837,422
1,048,038
4,876,191

1,831,892
10,996,681
12,797,638

1,774,044
10,325,049
11,340,855

57,848
671,632
1,456,783

2,002,073
11,292,965
13,148,579

1,949,245
10,693,613
11,802,232

52,828
599,352
1,346,347

2 8,198
4 8 ,2 4 0
3
1,836
1,336
31 2 ,1 3 9

2 6,743
4 8 ,2 2 0
3
1,761
1,336
304,6 4 0

1,455
20
0
75
0
7,499

26,747
32,8 3 5
0
1,990
1,460
2 9 7,097

25,275
3 2 ,7 1 4
0
1,480
1,456
288,9 7 6

1,472
121
0
510
4
8,121

Secured by residential properties:
Secured by 7 - to 4 - family residential properties:
Insured by Federal Housing Administration...........................................................
Guaranteed by Veterans Administration..................................................................
Not insured or guaranteed by FHA or V A ..............................................................
Secured by multifamily (5 or more) residential properties:
Insured by Federal Housing Administration...........................................................
Not insured by F H A ........................................................................................................
Secured by other properties......................................................................................................
Loans to dom estic com m e rcia l and fo re ig n banks ..................................................................
Loans to o th e r fin a n cia l in s titu tio n s ............................................................................................
Loans to brokers and dealers in securities .................................................................................
O ther loans fo r purchasing or ca rry in g s e c u r itie s .....................................................................
Loans to farm ers (e x c lu d in g loans on real e s ta te ).....................................................................
C om m ercial and in d u stria l loans ...................................................................................................




167

Federal fu n d s sold and securities purchased u n d e r agreements to re s e ll..................................

OF BANKS

N oninsured

LIABILITIES

Insured

ASSETS AND

T otal

Table 108. ASSETS A N D L IA B IL IT IE S OF A L L M U T U A L SAVINGS BANKS IN THE U N ITE D STATES (STATES AN D OTHER AREAS),
168

JU N E 30, 1975, A N D D EC E M B ER 31, 1 9 7 5 -C O N T IN U E D
BANKS GROUPED BY INSURANCE STATUS
(Amounts in thousands of dollars)
D ecem ber 31, 1975

June 3 0 ,1 9 7 5
Asset, lia b ility , o r surplus a cc o u n t item
T otal

Loans to in d iv id u a ls f o r personal e xp e n d itu re s ........................................................................
A ll o th e r loans (in c lu d in g o v e r d r a fts )............................................................................................

N oninsured

Insured

N oninsured

Insured

T otal

2 ,297,786
116,067

1 ,8 9 6 ,0 6 0
6 3 ,2 6 6

4 0 1,726
52,801

2,4 4 9 ,6 3 7
9 5 ,223

2 ,0 5 2 ,1 4 7
3 8 ,133

3 9 7 ,4 9 0
5 7 ,09 0

115,483,800

102,130,137

13,353,663

126,449
4 6,143
3,8 5 0
92 ,2 2 9

1,087,813
464,851
106,965
1,579,778

9 6 3 ,6 6 4
4 1 8 ,2 3 3
94 ,2 5 3
1,479,088

1 24,149
4 6 ,6 1 8
1 2,712
1 00 ,690

T o ta l lia b ilitie s and surplus a c c o u n ts ...........................................................................................................

116,774,352

102,273,237

14,501,115

121,070,592

107,280,765

13,789,827

D e p o s it s - t o t a l...............................................................................................................................................
Savings and tim e d e p o s it s - to t a l......................................................................................................
Savings deposits.............................................................................................................................
Deposits accumulated for payment of personal loans .......................................................
Fixed maturity and other time deposits................................................................................
D em and d e p o s its - to ta l........................................................................................................................

106,711,808
105,687,126

93,610,570
9 2 ,6 1 7 ,9 1 8

13,101,238
1 3,069,208

110,583,326
109,553,709

98,126,107
9 7 ,1 3 3 ,3 4 0

12,457,219
1 2,42 0,36 9

69,132,329
3,213
36,551,584

60,454,140
384
32,163,394

8.678.189
2,829
4.388.190

70,307,268
2,654
39,243,787

62,050,661
430
35,082,249

8,256,607
2,224
4,161,538

1,024,682

9 9 2 ,6 5 2

3 2,030

1,029,617

99 2 ,7 6 7

3 6 ,8 5 0

M isce llaneous lia b ilitie s — t o t a l ................................................................................................................
S e curities sold u nd e r agreem ents to r e p u rc h a s e ........................................................................
O th e r b o r r o w in g s ..................................................................................................................................
O th e r lia b ilitie s ....................................................................................................................................

1,896,313
7 5,048
370,703
1,450,562

1,643,349
75,0 4 8
3 6 1 ,5 8 5
1,206,716

252,964
0
9,1 1 8
2 4 3,846

2,066,326
108,715
4 8 1 ,7 7 8
1,475,833

1,815,359
108,715
4 6 5 ,2 7 9
1,241,365

250,967
0
16,499
2 3 4 ,4 68
12,708,186

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

108,608,121

95,253,919

13,354,202

112,649,652

99,941,466

M in o r ity in te re s t in c o n s o lid a te d subsidiaries ..................................................................................

0

0

0

70

70

0

S urplus a c c o u n t s - t o t a l .............................................................................................................................
Capital notes and d e b e n tu re s ...........................................................................................................
O th e r surplus a c c o u n ts ........................................................................................................................

8,166,231
172,807
7 ,993,424

7,019,318
166,764
6 ,8 5 2 ,5 5 4

1,146,913
6,043
1,140,870

8,420,870
196,374
8,22 4 ,4 9 6

7,339,229
190,279
7 ,1 4 8 ,9 5 0

1,081,641
6,095
1,075,546

1.8%
7.9
18.9

1.9%
7.9
19.0

1.2%
8.1
18.5

1.9%
8.9
19.3

2.0%
8.8
19.5

1.1%
9.6
17.9

68.8
2.6
7.0

68.6
2.6
6.9

70.3
1.9
7.9

67.1
2.7
7.0

6 6.8
2.8
6.8

69.3
2.1
7.8

T o ta l lia b ilitie s

PERCENTAG ES
O f to ta l assets:
Cash and balances w ith o th e r banks ....................................................................................................
U.S. G o ve rn m e n t and agency s e c u ritie s ...............................................................................................
O ther s e c u r itie s ............................................................................................................................................
Loans (in c lu d in g federal fu n d s sold and securities purchased u n d e r
agreements to r e s e ll) .....................................................................................................................
O th e r a s se ts...................................................................................................................................................
T o ta l surplus a c c o u n ts ...............................................................................................................................
O f to ta l assets o th e r th a n cash and U.S. G o vernm ent o b lig a tio n s :
T o ta l surplus a c c o u n ts ................................................................................................................................

7.8

7.6

8.7

7.8

7.7

8.8

N um ber o f banks ..............................................................................................................................................

478

323

155

476

329

147




CORPORATION

14,059,025

9 0 5 ,0 3 0
3 0 9 ,3 9 5
9 4 ,7 9 5
1,400,728

INSURANCE

97,609,411

1,031,479
3 5 5,538
9 8,645
1,492,957

DEPOSIT

111,668,436

T o ta l loans and secu ritie s

FEDERAL

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

Bank prem ises, fu r n itu r e and fix tu re s , and o th e r assets representing bank p re m ise s. . .
Real estate ow ned o th e r th an ba nk p re m is e s .............................................................................
Inve stm en ts in subsidiaries n o t c o n s o lid a te d ................................................................................
O th e r a s s e ts ............................................................................................................................................

Table 109. ASSETS A N D L IA B IL IT IE S OF INSURED COMM ERCIAL BANKS IN THE U N ITE D STATES (STATES A N D OTHER AR EA S ),

DECEMBER C A L L DATES, 1965, 1 9 7 1 -1 9 7 5
(Amounts in thousands of dollars)
Asset, lia b ility , o r ca p ita l a cc o u n t item

T o ta l a s s e ts .................................................................................................................

Dec. 31, 1965

Dec. 31, 1 9 7 1 1

Dec. 31, 1972

Dec. 3 1 ,1 9 7 3

Dec. 31, 1974

Dec. 31, 1975

379,405,3842

832,658,280

912,529,261

952,451,011

98,690,700
7,5 9 1 ,5 9 0
27,4 8 2 ,8 1 7
21 ,9 6 2 ,4 5 6
2,4 2 7 ,9 1 4
567,033
3 8 ,6 5 8 ,8 9 0

111,844,113
8 ,7 0 3 ,0 0 8
2 6 ,0 7 4 ,8 9 0
2 8 ,1 5 6 ,0 6 4
2,7 8 3 ,3 7 9
7 3 9 ,9 2 8
4 5 ,3 8 6 ,8 4 4

116,939,181
1 0 ,7 6 8 ,8 4 4
2 7 ,8 2 0 ,7 4 2
3 0 ,1 2 8 ,7 6 8
2,771,041
78 7 ,9 6 0
4 4 ,6 6 1 ,8 2 6

126,081,191
11 ,7 2 7 ,5 9 5
2 7 ,1 1 8 ,2 9 6
3 4 ,4 1 4 ,4 9 7
4 ,0 9 0 ,4 2 8
1,449,086
4 7 ,2 8 1 ,2 8 9

129,024,072
12,355,374
2 6,779,975
32,1 6 8 ,4 6 4
7,566,509
2 ,820,929
47,332,821

In ve stm e n t s e c u r it ie s - t o t a l............................................................................................................................
U.S. T reasury s e c u r itie s ................................................................................................................
S ecurities o f o th e r U.S. G o vernm ent agencies and c o rp o ra tio n s .................................................
O blig a tio n s o f States and p o litic a l su bdivisions ...............................................................................
O th e r s e c u r it ie s .........................................................................................................

103,650,708
59,2 0 9 ,8 3 2
4 ,5 1 3 ,1 1 4
38,4 8 0 ,3 4 9
1,447,413

163,859,514
62 ,6 9 6 ,6 6 7
17,071,836
80,135,021
3 ,9 5 5 ,9 9 0

178,632,700
6 4 ,7 0 9 ,7 1 5
2 1 ,1 5 6 ,6 7 8
8 7 ,4 1 8 ,5 3 8
5 ,347,769

179,574,763
5 5 ,2 9 3 ,3 0 0
2 7 ,5 3 8 ,2 1 4
9 1 ,2 2 7 ,8 8 2
5 ,5 1 5 ,3 6 7

185,919,136
51 ,8 7 3 ,9 8 6
31,087,341
9 6 ,7 9 1 ,3 6 0
6 ,1 6 6 ,4 4 9

222,515,186
81,0 1 1 ,0 1 0
3 3 ,2 9 8 ,6 6 8
1 00,801,477
7,404,031

5,307,564

5,128,096

8,655,329

7,983,831

5,331,983

2,064,215

19,643,272

25,634,862

34,379,920

38,937,288

37,345,238

T ra d in g a c c o u n t se cu ritie s3 ..........................................................................................................................
Federal fu n d s so ld 4 ...............................................................................................................................
O th e r l o a n s - t o t a l ...................................................................................................................
Real estate lo a n s - t o t a l...............................................................................................
Secured by farmland................................................................................................................

Secured by residential properties:
Secured by 1- to 4-family residential properties:
Insured by Federal Housing Administration................................................................
Guaranteed by Veterans Administration..............................................................
Not insured or guaranteed by FHA or V A .........................................................
Secured by multifamily (5 or more) properties:
Insured by Federal Housing Administration3 ....................................................
Not insured by FHA 3 .................................................................................................
Secured by other properties.............................................................................
Loans to d o m estic c o m m e rcia l and fo re ig n b a n k s ..........................................
Loans to o th e r fin a n c ia l in s titu tio n s .........................................................................................
Loans to b ro k e rs and dealers in securities .........................................................
O th e r loans fo r purchasing o r ca rry in g s e c u r itie s .............................................................
Loans to fa rm e rs (e x c lu d in g loans on real e s ta te )................................................................
Com m ercial and in d u s tria l loans (in c lu d in g open m a rke t p a p e r).....................................
O th e r loans to in d iv id u a ls - to ta l ...........................................................................
Passenger automobile instalment loans .........................................................

Credit cards and related plans:
Retail (charge account) credit card p la n s ................................................................
Check credit and revolving credit plans..........................................................................

388,902,133
9 9 ,0 8 6 ,2 7 6

459,755,788
11 8,787,181

506,378,800
13 1,751,383

502,289,682
1 36,186,930

4,173,726

4,752270

5,420,190

6,030,620

6,370,913

7,592,405
2,637,439
21,929,584

7.476243
2,966,378
37.438,104

7236,346
3,181,876
46,425,199

6J)02,779
3,253,738
57,639,300

6,154,725
3,193,583
65,204281

5,761,362
3,108,439
68,149,590

14,346,493

803,880
3,177,970
26,277,989

1225,769
4,550,113
31,714,703

1293,191
5,636,229
38,641,754

939,083
6,652,445
43,576,646

513,947
5,401,104
46,881,575

2 .0 9 5 .0 1 2
1 3 ,186,038
5 ,0 8 7 ,6 9 4
3 ,1 7 5 ,0 7 6
8.2 0 3 .0 1 3
71,2 3 5 ,1 8 3
45 ,497,461

4 ,4 0 5 ,2 9 8
1 6,908,213
7,2 0 2 ,4 4 0
3 ,6 4 6 ,0 6 4
12,50 6 ,2 0 6
1 18,4 0 1 ,2 0 3
7 4 ,7 9 6 ,8 4 8

6 ,1 1 9 ,8 4 3
2 3 ,4 0 7 ,6 9 5
1 1 ,1 6 5 ,5 7 2
4 ,4 6 7 ,1 4 5
1 4,3 0 2 ,1 0 6
1 3 2 ,4 9 7 ,5 5 5
8 7 ,6 2 9 ,9 0 4

9,1 5 5 ,4 9 6
3 0 ,5 4 0 ,9 8 2
7,625,741
4 ,3 0 0 ,9 4 6
17,1 5 0 ,3 2 0
1 5 8 ,6 8 8 ,2 0 2
1 0 0 ,3 8 2 ,5 1 0

10,0 8 2 ,5 2 5
3 5 ,1 1 9 ,9 0 4
5 ,1 9 2 ,8 9 6
4 ,0 0 3 ,0 1 5
1 8 ,225,296
184,21 6 ,9 9 9
103 ,7 1 4 ,1 6 4

9 ,5 5 6 ,7 1 4
29,409,991
7 ,055,262
3 ,8 2 4 ,3 8 0
20 ,135,056
175,922,939
1 0 6,819,480

17,139,214

24,850,695

29,084,924

33,477,132

32,949,382

33,455,998

4,523,889
1,463,857

5,443,349
1,780,153

6,878,593
2262,700

8,327,292
2,810,808

9,551,255
2,827,207

(5 )
(5 )

169




328,225,896
8 2 ,3 1 4 ,2 9 0

2,888,012

203,061,2012
4 9 ,3 9 3 ,9 3 3

LI ABI LITI ES OF BANKS

737,699,385

60,436,719
4 ,8 6 5 ,8 0 3
1 7,992,395
14,354,186
484,8 1 7
2 55,8 6 5
22,483,653

ASSETS AND

639,903,322

Cash, balances w ith banks, and c o lle c tio n ite m s - to ta l .......................................................................
C urrency and c o i n ......................................................................................................
Reserve w ith Federal Reserve banks (m em ber b a n k s ).........................................................
Demand balances w ith banks in th e U.S. (e xce p t A m erican branches o f foreign banks) . . .
O ther balances w ith banks in th e U.S....................................................................................................
Balances w ith banks in fo re ig n c o u n t r i e s ..............................................................
Cash item s in process o f c o lle c tio n ............................................................................................

Asset, lia b ility , o r cap ita l a cco u n t item

A ll o th e r loans (in c lu d in g o v e rd ra fts )....................................................................................................
Total loans and securities...................................................................................

Dec. 31, 1 9 7 1 1

Dec. 31, 1972

Dec. 31, 1973

Dec. 31, 1974

Dec. 3 1, 1975

6,436,145
5,170,118
4,326,916
12203,659
22,484,640

8,371286
6,206,851
4206240
14,538,048
23,740260

8,998,167
6,514,415
5,625,691
15,491,334
22297,075

8,720,369
6,720,411
5,955,100
16,455,919
23,133,221

4,176,950
3,126,804
7,388,640
13,665,853
5,187,791
308,776,1242

4,674,364
4,655,510
3,865,597
11,409,477
19,353,459

10,2 2 6 ,0 3 7

13,1 2 4 ,4 1 0

14 ,0 7 2 ,6 1 8

1 3,3 7 8 ,9 3 0

598,297,791

682,365,800

739,219,055

767,482,089

1 0 ,285,384
3 9 0 ,8 3 3
9 1 1 ,5 5 0
3,9 1 4 ,1 8 6
8 ,674 ,4 2 3

1 1 ,524,646
36 9 ,1 9 3
1,077,700
3,4 7 1 ,2 0 3
11,114,739

1 2,788,763
4 3 3 ,8 6 0
1,4 0 3 ,4 0 0
4,3 5 6 ,5 2 7
14,370,749

1 4 ,296,959
81 1 ,0 8 0
1 ,73 9 ,0 5 4
10,6 5 3 ,3 8 2
19,7 2 8 ,5 4 0

15,5 9 8 ,2 3 0
1,908,880
1,992,754
8,6 8 7 ,9 9 6
2 7 ,7 5 6 ,9 9 0

Total liabilities, reserves, and capital accounts ........................................................................

379,405,384

639,903,322

737,699,385

832,658,280

912,529,261

952,451,011

Business and personal d e p o s it s-t o t a l.................................................................................
In d ivid u a ls, partnerships, and c o rp o r a tio n s - d e m a n d ......................................................................
In d iv id u a ls , partnerships, and c o r p o r a tio n s - tim e .............................................................................
Savings deposits.....................................................................................................................................
Deposits accumulated for payment of personal loans ..............................................................
Other deposits of individuals, partnerships, and corporations...............................................
C e rtifie d and o ffic e rs ' checks, le tte rs o f c re d it, tra ve le rs' checks, e tc .........................................

275,205,357
139,077,920
130,195,436

439,568,884
191,77 5 ,5 1 5
237,930,791

504,283,757
2 2 1 ,2 0 4 ,6 4 5
2 7 1 ,8 2 6 ,5 6 7

555,151,799
2 3 1 ,9 5 6 ,8 8 0
3 1 2 ,3 3 2 ,8 2 7

604,637,647
23 5 ,9 8 4 ,6 8 0
3 58,273,861

645,305,033
2 46,710,621
3 8 7 ,8 4 8 ,8 3 3

92,554,897
1,078,207
36,562,332

112,165,951
677,179
125,087,661

124,188,716
554,001
147,083,850

127,818,434
503,468
184,010,925

136,268,612
386,635
221,618,614

160,716,975
280,452
226,851,406

5,932,001

9 ,8 6 2 ,5 7 8

11,252,545

10,8 6 2 ,0 9 2

1 0,379,106

10,745,579

Government d e p o s it s -t o t a l...............................................................................................
U nited States G o v e rn m e n t-d e m a n d ......................................................................................................
U nited States G o v e r n m e n t- tim e ...........................................................................................................
States and s u b d iv is io n s - d e m a n d ...........................................................................................................
States and s u b d iv is io n s - tim e ...................................................................................................................

32,216,843
5,523,816
281,330
14,241,724
12,169,973

58,987,158
10,263,251
530,769
17,7 1 4 ,5 8 6
30 ,4 7 8 ,5 5 2

67,554,342
1 0 ,939,672
61 4 ,0 3 5
1 8 ,672,774
37,327,861

73,660,934
9,8 8 7 ,6 6 8
440,641
1 8,7 4 6 ,9 0 0
4 4 ,5 8 5 ,7 2 5

74,219,736
4 ,8 2 1 ,9 6 9
500,147
18,71 0 ,6 5 9
50,186,961

70,704,640
3 ,1 2 6 ,5 3 2
588,481
18,879,179
4 8 ,1 1 0 ,4 4 8

Dom estic interbank d e p o s it s - t o t a l ...................................................................................
Com m ercial banks in th e U nited S ta te s -d e m a n d .............................................................................
C om m ercial banks in th e U nited S t a t e s - t i m e ...................................................................................
M u tu a l savings banks in th e U n ite d S ta te s -d e m a n d ......................................................................
M u tu a l savings banks in the U n ite d S ta te s -tim e .............................................................................

17,311,718
15,779,062
510,159
860,378
162,119

31,906,847
28 ,0 1 4 ,7 3 2
2,4 4 1 ,4 8 9
1,1 6 3 ,7 4 0
28 6,886

33,677,534
2 8 ,5 6 9 ,7 2 7
3 ,5 4 8 ,5 0 3
1,2 0 5 ,6 8 8
3 5 3 ,6 1 6

37,444,862
2 9 ,8 6 1 ,8 7 9
5 ,783,907
1,1 5 5 ,6 8 2
6 4 3 ,3 9 4

45,328,505
3 5 ,1 0 1 ,5 5 3
8 ,5 6 3 ,6 0 4
1 ,1 9 7 ,3 3 2
4 6 6 ,0 1 6

44,280,973
3 3 ,4 9 1 ,6 7 3
9,1 2 9 ,7 7 5
1,159,714
499,811

Foreign government and bank d e p o s it s - t o t a l ....................................................................
Foreign governm ents, central banks, e tc .-d e m a n d ........................................................................
F oreign governm ents, central banks, e t c . - t i m e ................................................................................
Banks in fo re ig n c o u n trie s -d e m a n d ....................................................................................................
Banks in fo re ig n c o u n trie s -tim e ............................................................................................................

6,778,763
892,867
4,086,126
1,529,097
270,673

8,721,173
80 3 ,3 6 4
5,05 3 ,5 5 4
2,6 8 1 ,0 9 6
183,159

11,391,934
908,731
6 ,5 1 7 ,4 9 3
3 ,6 3 7 ,3 0 9
328,401

15,361,830
1,355,645
8,506,931
5 ,2 7 9 ,6 3 5
219,619

22,227,034
1 ,8 8 2 ,0 5 4
12 ,078,963
6 ,3 3 9 ,5 8 3
1,926,434

20,458,022
1 ,659,374
11,374,159
5,649 ,9 3 9
1,774,550

Total d e p o s its ........................................................................................................
Demand...............................................................................................................................................
Time ....................................................................................................................................................

331,512,681

539,184,062

616,907,567

681,619,425

746,412,922

780,748,668

183,836,865
147,675,816

262^78,862
276^05,200

296,391,091
320,516,476

309,106281
372,513,044

314,416,936
431,995,986

321,422,611
459,326,057




CORPORATION

1,862,571
3,185,748

5,144,222

INSURANCE

B ank premises, fu rn itu re and fix tu re s , and o th e r assets representing bank pre m ise s.............
Real estate ow ned o th e r th a n b a n k p re m is e s .....................................................................................
Inve stm e n ts in subsidiaries n o t c o n s o lid a te d 3 ...........................................................................
C ustom ers' lia b ility on acceptances o u tsta n d in g .............................................................................
O ther a s s e ts ...................................................................................................................................................

DEPOSIT

8 ,0 4 5 ,3 3 4
517,036,246

FEDERAL

Other retail consumer instalment loans .......................................................................................
Mobile homes, not including travel trailers3 ...........................................................................
Other retail consumer goods3......................................................................................................
Residential repair and modernization instalment loans............................................................
Other instalment loans for personal expenditures......................................................................
Single-payment loans for personal expenditures........................................................................

Dec. 31, 1965

170

Table 109. ASSETS A N D L IA B IL IT IE S OF INSURED COMM ERCIAL BANKS IN THE U N ITE D STATES (STATES AN D OTHER AREAS),
DECEMBER C A LL DATES, 1965, 1 9 7 1 -1 9 7 5 -C O N T IN U E D
(Amounts in thousands of dollars)

M iscellaneous l ia b ilit ie s - t o t a l..........................................................................................
Federal fun d s purchased (b o rro w e d )6 ...................................................................................................
O the r lia b ilitie s f o r b o rro w e d m o n e y ...................................................................................................
M ortgage indebtedness3 ............................................................................................................................
A cceptances o u t s t a n d in g .............................................................................................................
O the r lia b ilitie s ...............................................................................................................................

13,976,496
2 ,438,413
1,89 8 ,2 9 0

Total lia b ilit ie s ......................................................................................................

1,897,569
7 ,7 4 2 ,2 2 4

47,367,281
24 ,1 7 9 ,7 4 2
1,463,429
668,331
4 ,0 3 9 ,6 4 3
17,016,136

61,509,222
3 3 ,7 3 1 ,0 6 9
3,9 1 9 ,7 9 6
1,1 6 0 ,6 7 5
3,5 7 0 ,9 0 0
19,1 2 6 ,7 8 2

85,386,177
5 0 ,4 8 0 ,9 9 6
7 ,1 7 9 ,6 4 4
7 7 1,519
4 ,4 8 6 ,3 0 9
2 2 ,4 6 7 ,7 0 9

9 4,147,074
5 1 ,2 2 4 ,6 3 9
4 ,8 6 7 ,1 1 9
7 2 4 ,8 4 5
1 1 ,2 2 6 ,4 4 8
2 6 ,1 0 4 ,0 2 3

93,970,964
5 2 ,19 0,14 7
4 ,6 5 1 ,0 5 0
7 7 4 ,0 9 4
9 ,2 7 5 ,8 0 3
2 7,0 7 9 ,8 7 0

345,489,177

586,551,343

678,416,789

767,005,602

840,559,996

874,719,632

3,551

5,594

5,473

5,113

4,470

M in o rity interest in consolidated subsidiaries ...................................................................
4,011,273
4 ,0 1 1 ,2 7 3

6,443,382
6 ,1 5 1 ,2 7 4
113,427
178,681

6,909,306
6,623,801
112,167
173,338

7,808,584
7 ,5 2 6 ,7 4 4
107,994
173,846

8,676,953
8 ,3 7 6 ,6 8 3
131,581
168,689

9,010,387
8 ,6 5 4 ,7 1 4
169,113
186,560

Capital a cc o u n ts-to ta l ...............................................................................
Capital notes and d e b e n tu re s ..................................................................................................................
E q u ity c a p i t a l- t o t a l ....................................................................................................................................
Preferred stock ......................................................................................................................................
Common stock ..........................................................................................................................
Surplus ........................................................................................................................
Undivided profits .................................................................................................................................
Reserve for contingencies and other capital reserves................................................................

29,904,934
1,652,701
28,2 5 2 ,2 3 3

46,905,046
2,9 5 6 ,1 8 0
4 3 ,9 4 8 ,8 6 6

52,367,696
4 ,0 9 2 ,8 2 0
4 8 ,2 7 4 ,8 7 6

57,838,621
4,1 1 7 ,3 5 1
5 3 ,7 2 1 ,2 7 0

63,287,199
4,25 9 ,5 3 1
59 ,0 2 7 ,6 6 8

68,716,522
4 ,4 0 7 ,8 9 2
6 4 ,3 0 8 ,6 3 0

39,890
8,507,770
13,464,797
5,437,575
802,201

91,930
11,811,129
19,895,816
11,135,068
1,014,923

68,924
12,853,653
21,528,422
13,012232
811,645

65,650
13,846,071
23,593,311
15,361,857
854,381

43,460
14,789,463
25,313,257
17,969,789
911,699

47,881
15,565,026
26,712,935
21,182,330
800,458

15.9%
16.8
10.5

15.4%
12.5
14.0

15.2%
11.6
13.3

14.0%
9.9
12.7

13.8%
9.1
12.2

13.5%
12.0
11.9

54.1
2.7
7.9

54.4
3.8
7.3

56.2
3.7
7.1

59.3
4.0
7.0

59.8
5.2
7.0

56.7
5.9
7.3

Of total assets other than cash and U.S. Treasury securities:
T o ta l capital a c c o u n ts ...........................................................................................................

11.5

9.8

9.4

8.8

8.7

9.3

13,547

13,612

13,733

13,976

14,228

14,384

N u m b e r o f b a n k s .....................................................................................................................................................

1 F o r d e s c rip tio n o f changes in 1969 in the R e p o rt o f C o n d itio n , see pp. 157-158 and notes to tables.
2 Assets include " O th e r loans and d isco u n ts” at gross (before d e d u ctio n o f valu a tio n reserves) value, as repo rte d in 1 9 7 1 -1 9 7 5 .
3 N o t available p rio r to fig u re show n, see note 1.
4 P rio r to D ecem ber 31, 1966, "F e d e ra l fu n d s sold (lo a n e d )" were included in "O th e r lo a n s ";s in c e 1967, includes securities purchased u n d e r agreements to resell, w h ic h p reviously w ere rep o rte d w ith "L o a n s to dom estic
com m ercial and fo re ig n b a n k s " and " O th e r loans fo r purchasing o r carrying securities."
5 Before 1967, loans extended und e r c re d it cards and related plans were d is trib u te d among o th e r instalm ent loan items.
6 P rio r to Decem ber 31, 1966, Federal fu n d s purchased were included in "O th e r lia b ilitie s fo r borrow ed m o n e y "; since 1967, includes securities sold und e r agreements to repurchase w h ich p re vio u sly w ere reported w ith "O th e r
lia b ilitie s fo r b o rro w e d m o n e y ."




LIABI LITIES OF BANKS

PERCENTAGES
Of total assets:
Cash and balances w ith o th e r b a n k s .............................................................................................................
U.S. T reasury securities and securities o f o th e r U.S. G overnm ent agencies and c o r p o r a tio n s ..
O th e r s e c u ritie s ...............................................................
Loans (in c lu d in g Federal fu n d s sold and securities purchased under
agreem ents to r e s e ll) ............................................................................................................................
O th e r a sse ts..........................................................................................................................................................
T o ta l capital a c c o u n ts ......................................................................................................................................

ASSETS AND

Reserves on loans and s e c u ritie s-to ta l...............................................................................
Reserves fo r bad d e b t losses on lo a n s ...........................................................................
O th e r reserves on loans3 .....................................................................................
Reserves on securities3 ..................................................................................................................

Asset, lia b ility , or surplus a c co u n t item

Dec. 31, 1965

172

Table 110. ASSETS A N D L IA B IL IT IE S OF INSURED M U T U A L SAVINGS BANKS IN THE U N ITE D STATES (STATES A N D OTHER AR EAS),
DECEMBER C A LL DATES, 1965, 1 9 7 1 -1 9 7 5
(Amounts in thousands of dollars)
Dec. 31 , 1974

Dec. 31, 1975

7 7 ,8 9 1 ,9 2 7

87,650,051

9 3 ,0 1 2 ,5 1 5

95 ,5 8 9 ,4 0 1

1 0 7 ,2 8 0 ,7 6 5

904,0 0 0
142,598
493,600
212,193
55,609

1 ,2 7 3 ,7 3 5
195,679
551,149
4 4 5 ,3 8 4
81,523

1 ,520,399
2 15,345
568,211
6 2 7,530
109,313

1,847,776
2 2 6,905
7 11,172
817,4 9 5
92,204

2 ,0 5 3 ,3 5 3
26 8 ,1 0 2
6 8 3 ,9 4 3
1,022,757
78,551

2 ,1 9 5 ,3 9 0
3 0 8 ,8 8 7
70 6 ,11 6
1 ,09 1 ,27 4
8 9,113

S e c u r it ie s - to t a l...................................................................................................................................................

8,770,371

1 8 ,491,379

2 2 ,6 3 6 ,7 3 7

2 1 ,8 7 1 ,4 1 2

2 2 ,6 8 4 ,6 1 4

3 0 ,4 2 1 ,0 3 4

U nite d States G o vern m en t and agency s e c u r it ie s - t o t a l.................................................................
Securities maturing in 1 year or le ss ...............................................................................................
Securities maturing in 1 to 5 years .................................................................................................
Securities maturing in 5 to 10 years ...............................................................................................
Securities maturing after 10 years....................................................................................................

4,602,317
(2)
(2)
(2)
(2)

5,156,321

6,3 8 6 ,0 0 3

5 ,9 7 1 ,2 0 0

5 ,9 6 7 ,8 3 5

9 ,4 6 8 ,6 8 2

867,992
1,823,997
832,859
1,631,473

968,157
1,915,014
1,095,116
2,407,716

831,719
1,513,476
789,936
2,836,069

712^74
1,604,165
694,251
2,957,145

1,312,116
2,761,242
1,167,218
4,228,106

State, c o u n ty , and m u n ic ip a l o b lig a tio n s ............................................................................................
C orp ora te b o n d s ............................................................................................................................................
O the r bonds, notes, and d e b e n tu re s ......................................................................................................

300,273
(3)
2 ,7 3 1 ,8 0 5 3

373 ,8 1 0
9 ,2 9 3 ,5 0 7
1,194,941

857,353
11,086,004
1,370,862

9 0 7,013
1 0 ,026,920
1,713,867

882 ,6 2 0
10,560,303
1,856,557

1,488,631
1 3,503,561
2 ,3 2 9 ,6 8 5

C orp ora te s t o c k - t o t a l ...............................................................................................................................
Bank ...........................................................................................................................................................
Other ........................................................................................................................................................

1,135,976

T o ta l a s s e ts ..................................................................................................................................................................
Cash, balances w ith banks, and c o lle c tio n it e m s - t o t a l...........................................................................
C u rren cy and c o i n .......................................................................................................................................
D em and balances w ith banks in the U n ite d S ta te s ...........................................................................
O th er balances w ith banks in the U n ite d S ta te s ................................................................................
Cash item s in process o f c o lle c t io n .........................................................................................................

Secured by residential properties:
Secured by 1- to 4-family residential properties:
Insured by Federal Housing Administration...................................................................
Guaranteed by Veterans Administration...........................................................................
Not insured or guaranteed by FHA or V A ......................................................................
Secured by multifamily (5 or more) residential properties:
Insured by Federal Housing Administration...................................................................
Not insured by F H A .................................................................................................................
Secured by other properties.........................................................................................................
Loans to dom estic co m m ercial and fo re ig n banks ...........................................................................
Loans to o th e r fin a n cia l in s titu tio n s ......................................................................................................
Loans to bro ke rs and dealers in s e c u ritie s ............................................................................................
O ther loans fo r purchasing or ca rry in g s e c u r itie s .............................................................................
Loans to farm ers (e xclu d in g loans on real e s ta te ).............................................................................
C om m ercial and in d u s tria l loans ...........................................................................................................
Loans to in d ivid u a ls fo r personal e x p e n d itu re s ..................................................................................
A ll o th e r loans (in c lu d in g o v e rd ra fts )....................................................................................................




2 ,4 7 2 ,8 0 0

2,9 3 6 ,5 1 5

3 ,2 5 2 ,4 1 2

3 ,4 1 7 ,2 9 9

3 ,6 3 0 ,4 7 5

288,373
2,184,427

329,426
2,607,089

364,066
2,888,346

348,290
3,069,009

374,851
3,255,624

4 9 3 ,5 3 6

596,255

1 ,252,753

9 6 4 ,8 5 6

8 9 7 ,0 6 3

5 6 ,0 6 6 ,7 2 2
54,2 2 2 ,0 7 7

60,950,481
59 ,0 9 4 ,3 3 0

6 5 ,8 7 0 ,7 1 4
63 ,9 4 6 ,5 1 3

6 7 ,4 4 9 ,2 1 7
6 5 ,3 3 9 ,7 4 8

70 ,8 1 2 ,0 4 0
6 8 ,3 7 1 ,8 5 9

46,8195

736,386
41,656

1,002,712
51,459

1,090,262
51,160

821,250
49,185

824,494
48,239

12,911,0246
10,427,3836
12,245,6126

13,532,344
10,923,517
13,031,229

13,388,433
11,413,769
14,804,568

12,828,775
11,728,249
17,087,533

12,052,069
11,501,239
18,275,751

11,587,451
11,342,670
20,123,915

1,396,791
7,136,586
7,423,568

1,399,794
8,265,926
8,767,669

1,523,751
9,416,887
10,219,896

1,688,126
10,076,268
10,875,860

1,949,245
10,693,613
11,802,232

4 9 ,6 2 8
3 6,492
5,951
3 ,4 8 5
1,110
463,0 0 1
1 ,260,144
2 4,834

29,751
29,927
28,922
3,446
1,305
252,4 3 8
1,451,401
58,961

13,679
29,473
4,441
2,221
1,323
173,322
1,665,365
34,377

18,339
2 6 ,324
743
930
1,416
175,360
1,812,329
7 4,028

2 5,275
3 2 ,7 1 4
0
1,480
1,456
2 88,9 7 6
2,0 5 2 ,1 4 7
38,133

(4)
4 0 ,1 7 3 ,6 7 4 1
3 9 ,435,679
(2)

(6)
(6)

3,804,841
12 ,5 0 5 4
14,342
21,585
4,812
1,913
144,698
515,673
22,467

CORPORATION

Federal fu n d s sold and securities purchased und e r agreem ents to r e s e ll..........................................
O th e r l o a n s - t o t a l ..............................................................................................................................................
Real estate lo a n s - t o t a l...............................................................................................................................
Construction loans ...............................................................................................................................
Secured by farmland.............................................................................................................................

5 0 ,7 0 9 ,0 4 7 1

INSURANCE

Dec. 31, 1973

DEPOSIT

Dec. 31 , 1972

FEDERAL

Dec. 31 , 1971

T o ta l loans and s e c u ritie s .............................................................................................................

8 8 ,9 9 4 ,8 7 9

9 1 ,0 9 8 ,6 8 7

1 02 ,1 30 ,1 37

6 6 1 ,1 1 8
147,340
59,309
1,078,412

7 6 0,289
180,671
64 ,8 8 3
1,164,017

857,879
233,7 7 5
8 2,292
1,263,415

9 6 3 ,6 64
4 18 ,2 3 3
9 4,2 53
1,479 ,0 88

T o ta l lia b ilitie s and surp lus a c c o u n ts ..................................................................................................................

5 0 ,7 0 9 ,0 4 7

7 7 ,8 9 1 ,9 2 7

8 7 ,650,051

9 3 ,0 1 2 ,5 1 5

95,5 8 9 ,4 0 1

10 7,2 8 0,7 6 5

D e p o s its - to ta l.....................................................................................................................................................
Savings and tim e d e p o s it s - t o t a l.............................................................................................................
Savings deposits...................................................................................................................................
Deposits accumulated for payment of personal loans .............................................................
Fixed maturity and other time deposits.........................................................................................
Demand d e p o s its -to ta l ............................................................................................................................

45,8 8 7 ,2 9 1
4 5 ,5 2 1 ,1 3 9

7 1 ,500,831
70,818,051

8 0 ,5 7 1 ,9 9 3
79,781,381

8 4 ,8 9 0 ,1 2 8
84,008,571

8 6 ,8 1 4 ,4 1 5
8 5 ,9 0 4 ,8 2 5

9 8 ,1 2 6 ,1 0 7
9 7 ,1 3 3 ,3 4 0

45,477,204
28
43,907

57,644,100
80
13,173,871

60,573,427
25
19,207,929

57,591,849
476
26,416,246

56,497,626
295
29,406,904

62,050,661
430
35,082,249

3 6 6,152

6 8 2 ,7 8 0

79 0 ,6 1 2

8 8 1,557

9 0 9 ,5 9 0

9 92,767

M iscellaneous l ia b i l i t i e s - t o t a l .......................................................................................................................
S ecurities sold u n d e r agreements to repurchase.................................................................................
O ther b o r r o w in g s .........................................................................................................................................
O ther lia b ilitie s ...........................................................................................................................................

65 5 ,0 1 3

9 7 5 ,9 9 6

9 0 ,8 0 0
564,213

100,045
875,951

1 ,1 1 4 ,4 6 9
22 757
9 8 '9 8 0
9 9 2 ,7 3 2

1,60 9 ,5 3 8
26,089
44 5,'9 01
1,137,548

1 ,952,443
217,561
6 67*256
1,067,626

1,815,359
108,715
465^279
1,241,365

4 6 ,5 4 2 ,3 0 4

72 ,4 7 6 ,8 2 7

81 ,6 8 6 ,4 6 2

86 ,4 9 9 ,6 6 6

88 ,7 6 6 ,8 5 8

9 9 ,9 4 1 ,4 6 6

1

0

0

0

70

4,1 6 6 ,7 4 3
2,759
4 ,1 6 3 ,9 8 4 1

5 ,4 1 5 ,0 9 9
10,456
5,4 0 4 ,6 4 3

5 ,9 6 3 ,5 8 9
5 9,372
5,9 0 4 ,2 1 7

6 ,5 1 2 ,8 4 9
114,953
6 ,3 9 7 ,8 9 6

6 ,8 2 2 ,5 4 3
169,460
6 ,6 5 3 ,0 8 3

7 ,339,229
190,279
7,148,950

1.8%
9.1
8.2

1.7%
6.6
17.1

1.7%
7.3
18.5

2.0%
6.4
17.1

2.1%
6.2
17.5

2.0%
8.8
19.5

72.6
2.0
7.0

70.2
2.2
6.8

72.2
2.3
7.0

71.6
2.5
7.1

66.8
2.8
6.8

T o ta l lia b ilitie s

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

M in o rity in te re st in co n so lid a te d subsidiaries .........................................................................................
S urplus a c c o u n t s - t o t a l ...................................................................................................................................
Capital notes and d e b e n tu re s ..................................................................................................................
O th e r surplus a c c o u n ts ..............................................................................................................................

(2)

PERCENTAGES
O f to ta l assets:1
Cash and balances w ith o th e r banks ..........................................................................................................
U.S. G overnm ent and agency s e c u ritie s .....................................................................................................
O ther s e c u r itie s ..................................................................................................................................................
Loans (in c lu d in g Federal fun d s sold and securities purchased
u n d e r agreem ents to r e s e ll) ...............................................................................................................
O th e r a sse ts..........................................................................................................................................................
T o ta l surplus a c c o u n ts ......................................................................................................................................

79.2
1.7
8.2

O f to ta l assets o th e r th a n cash and U.S. G o ve rn m e n t and agency securities:
T o ta l surplus a c c o u n ts ......................................................................................................................................

9.2

7.6

7.5

7.6

7.8

7.7

N u m b e r o f banks .....................................................................................................................................................

329

327

326

322

320

329

LIABI LITIES OF BANKS

8 4 ,1 8 3 ,4 7 3

590,326
9 0 ,9 8 7
4 1 ,5 1 8
843 ,7 2 4

4 8 ,9 4 4 ,0 4 5 1

ASSETS AND

7 5 ,0 5 1 ,6 3 7

35 3 ,9 3 0
27,295
(2)
47 9 ,7 7 7

Bank prem ises, fu r n itu r e and fix tu re s , and o th e r assets representing bank premises . . .
Real estate ow ned o th e r th a n bank p re m is e s ...............................................................................
In vestm ents in subsidiaries n o t c o n s o lid a te d ...............................................................................
O ther assets.............................................................................................................................................

1 Figures on loans and on securities have been revised to a gross basis to provide c o m p a ra b ility w ith data fo r 1 9 7 1 -1 9 7 5 . See page 158 fo r in fo rm a tio n on changes in rep o rts in 1971.
2 INIot repo rte d separately p rio r to 1971.
3 C orp o ra te bonds inclu d e d w ith o th e r bonds, notes, and debentures p rio r to 1971.
4 Federal fu n d s sold in clu d e d w ith loans to banks p rio r to 1971.
5 Farm ers Hom e A d m in is tra tio n insured notes, p re vio u sly reported as loans secured by farm land, included in U.S. G overnm ent and agency securities in 1 9 7 1 -1 9 7 5 .
6 P rio r to 1970, real estate loans secured by m u ltifa m ily residential properties were com bined w ith those secured by 1 - to 4 - fa m ily residential p roperties.




"vl

co

Table 111. PERCENTAGES OF ASSETS A N D L IA B IL IT IE S OF INSURED C O M M ER C IAL BANKS OPERATING TH R O U G H O U T 1975 IN
THE U N IT E D STATES (STATES AND OTHER A R EAS), DECEMBER 31, 1975
BANKS GROUPED BY AMOUNT OF DEPOSITS
174

Banks w ith deposits o f $ 500 m illio n
to
$1 b illio n

$1 b illio n
or
m ore

$5 m illio n
to
$ 1 0 m illio n

$ 10 m illio n
to
$2 5 m illio n

$25 m illio n
to
$50 m illio n

$5 0 m illio n
to
$ 1 0 0 m illio n

$1 0 0 m illio n
to
$500 m illio n

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

1 00.0%

Cash and due fro m banks ..........................................................
U.S. T reasury and agency se c u ritie s 1 ......................................
O b lig atio ns o f S tates and p o litic a l s u b d iv is io n s ..................
O th e r s e c u r itie s ..............................................................................
Federal fu n d s sold (lo a n e d )2 .....................................................

13.6
12.0
10.6
.8
3.9

12.6
42.0
1.4
.8
13.8

13.6
25.8
3.9
1.2
9.3

10.9
24.7
7.0
.9
6.3

10.0
21.1
10.9
.7
5.3

9.9
17.8
13.7
.9
4.4

10.1
15.9
14.4
.9
3.6

10.8
14.7
14.3
1.1
3.5

12.9
13.3
12.9
1.1
4.3

13.4
10.1
11.8
.9
4 .8

16.3
8.5
7.3
.5
3.5

O the r loans and d is c o u n t s - t o t a l .............................................
Real estate l o a n s - t o t a l ..........................................................
Loans to banks and o th e r fin a n c ia l i n s t it u t i o n s ..........
Loans to purchase or carry s e c u r itie s ..............................
Loans to fa rm e rs (e x c lu d in g loans on real e s ta te ). . . .
C om m ercial and in d u s tria l lo a n s ........................................
In s ta lm e n t loans f o r persanal e x p e n d itu r e s ..................
Single p a y m e n t loans fo r personal e x p e n d itu re s ..........
A ll o th e r loans (in c lu d in g o v e r d r a fts )..............................

52.7
14.3
4.1
1.1
2.1
18.5
8.7
2.4
1.4

26.0
3.3
.0
.0
11.3
3.6
6.1
1.1
.5

43.7
9.6
.4
.1
14.1
6.3
9.2
3.3
.6

4 7.5
12.4
.3
.2
13.4
7.8
9.9
3.0
.5

4 9 .4
14.6
.2
.2
11.3
8.9
10.5
3.1
.6

50.6
17.3
.3
.2
7.5
10.0
11.3
3.3
.6

51.6
18.3
.5
.3
3.7
12.2
12.5
3.4
.6

60.0
18.8
.7
.3
1.8
14.3
12.1
3.2
.7

51.6
17.1
1.4
.9
.9
16.0
11.5
2.8
1.0

53.5
17.1
3.3
.7
.8
17.6
9.4
3.1
1.5

54.2
10.1
8.0
2.0
.6
2 4.5
5.4
1.5
2.1

T o ta l a s s e ts .............................................................................................

O th e r a s s e ts ......................................................................................

6.3

3.5

2.5

2.7

2.5

2.8

3 .4

3.5

4.0

5.4

9.7

T o ta l lia b ilitie s , reserves, and c a p ita l acco unts .........................

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

D eposits— t o t a l ................................................................................
Demand.................................................................................
Time.....................................................................................
Ind ivid u a ls, partnerships, and c o rp o ra tio n s -d e m a n d .
In d ivid u a ls, partnerships, and c o r p o ra tio n s -tim e . . . .
U.S. G o v e rn m e n t....................................................................
States and s u b d iv is io n s ..........................................................
D om estic in t e r b a n k ...............................................................
F oreign go ve rn m e n t and b a n k .............................................
O th e r d e p o s its .........................................................................
Federal fu h d s purchased (b o rro w e d )3 ...................................
O th e r lia b ilitie s f o r b o rro w e d m o n e y ...................................
O th e r lia b ilitie s 4 ..............................................................................
Reserves on loans and s e c u ritie s ................................................
C apital notes and d e b e n tu re s .....................................................
O th e r ca pital a c c o u n ts .................................................................

82.1

69.5

84.8

87.2

88.5

88.7

87.9

87.4

84.9

81.8

76.7

33.8
48.2

51.9
17.6

47.1
37.7

36.4
50.8

33.7
54.8

32.3
56.5

31.7
56.2

31.9
55.5

34.1
50.8

35.3
46.5

34.5
42.2

26.1
4 0 .8
.4
7.0
5.2
1.4
1.1

45.2
16.1
.3
7.3
.3
.0
.3

41.8
32.5
.2
9.5
.3
.0
.5

31.6
4 5.4
.4
8.8
.3

27.7
51.0
.4
8.5
.3

27.2
50.3
.5
8.5
.5

26.9
48 .8
.5
8.9
1.2

(5 )

(5 )

(5 )

.8

.9

1.0

2 7.0
43.3
.5
9.2
3.7
.1
1.1

27.5
39.7
.4
8.9
4.5

.8

29.0
49 .5
.4
8.5
.2
.0
.8

.9

24.4
33.6
.3
4.6
9.3
3.2
1.4

5.5
.5
3 .8
.9
.5
6.7

.0
.0
1.0
.2
.0
29.3

.1
.1
1.2
.5
13.2

.2
.1
1.6
.5
.1
10.3

.3
.1
1.7
.6
.1
8.7

.5
.1
2.1
.7
.2
7.6

.9
.1
2.7
.7
.3
7.3

1.5
.1
2.7
.8
.4
7.1

4.2
.1
2.7
.8
.5
6.7

6.5
.5
2.9
.9
.6
6.6

9.1
.9
5.3
1.1
.6
6.2

14,138

24

204

1,877

3,110

4,8 1 8

2,177

1,036

705

102

85

(5 )

(5 )

S e c u ritie s held in tra d in g accounts are in c lu d e d in "O th e r assets."
in c lu d e s securities purchased u n d e r agreem ents to resell,
in c lu d e s securities sold u n d e r agreements to repurchase,
in c lu d e s m in o rity in te re st in c o nsolidated subsidiaries.
5 Less than 0 .0 5 percent.
N ote: F o r incom e and expense data by size o f bank, see tables 117 and 118. Assets.and lia b ilitie s (in $00 0 ) o f all com m ercial banks by size o f bank are contained in
Banks (w ith 1975 R e p o rt o f Inco m e ), D ecem ber 31, 1975.




(5 )

Assets and Liabilities-Commercial and Mutual Savings

INSURANCE CORPORATION

$2 m illio n
to
$5 m illio n

DEPOSIT

$1 m illio n
to
$2 m illio n

FEDERAL

A ll
banks

Less
than
$1 m illio n

Asset, lia b ility , o r cap ita l a c c o u n t item

Table 112. PERCENTAGES OF ASSETS A N D L IA B I LITIES OF INSURED M U T U A L SAVINGS BANKS OPERATING TH R O U G H O U T 1975 IN
THE UN ITED STATES (STATES A N D OTHER AR EA S ), DECEMBER 31, 1975
BANKS GROUPED BY AMOUNT OF DEPOSITS
Banks w ith deposits o f Asset, lia b ility , o r su rplu s a c c o u n t item

T o ta l a s s e ts ....................................................................................................

A ll
banks1

$5 m illio n
to
$10 m illio n

$10 m illio n
to
$25 m illio n

$25 m illio n
to
$50 m illio n

$ 5 0 m illio n
to
$ 1 0 0 m illio n

$ 1 0 0 m illio n
to
$ 5 0 0 m illio n

$ 5 0 0 m illio n
to
$1 b illio n

$1 b illio n
or
more

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

2.8
15.4
7.5
.1
4.8

4.0
7.9
8.5
.9
6.6

2.3
8.6
7.8
1.2
6.1

1.9
9.4
8.3
.9
6.0

2.2
9.9
10.0
1.2
5.2

1.9
9.3
12.0
1.3
5.8

2.1
7.9
15.1
1.6
5.6

.8

2.4

2.0

1.6

1.6

1.3

1.1

.3

O th e r loans and disco u n ts .................................................................
Real estate l o a n s - t o t a l .........................................................................
Construction loans .........................................................................
Secured by farmland......................................................................

66.0
63.7

64.9
59.1

70.0
65.4

69.6
65.7

67.5
64.6

66.0
64.1

64.6
62.8

.8

.4
.3

68.6
63.1
.7

1.1
.3

1.3
.2

1.0

.3

.5
.1

(2)

(2)

.7
(2)

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

12.6
10.6
28.7
11.0

5.0
2.2
45.0
6.2

2.2
5.2
47.2
7.5

3.1
3.9
50.2
6.6

6.0
6.5
44.5
7.2

9.8
9.0
37.1
7.8

15.1
11.2
26.7
10.5

14.3
12.0
22.1
13.7

Com m ercial and in d u s tria l lo a n s .......................................................
Loans to in d iv id u a ls f o r personal e x p e n d itu re s .........................
A ll o th e r loans in c lu d in g o v e r d r a f ts ................................................

.3
1.9
.1

1.2
4.6
.1

.7
4.5
.2

.2
4.1
.2

.4
3.3
.2

.1
2.6
.1

.3
1.5
.1

.3
1.4
(2)

O th e r a s s e ts .............................................................................................

2.8

2.0

1.6

2.5

2.4

2.7

2.7

2.9

T o ta l lia b ilitie s and su rplu s a c c o u n ts .....................................................

100.0

100.0

100.0

100.0

1 00.0

100.0

100.0

100.0

D e p o s it s - t o t a l........................................................................................
Savings deposits ........................................................................... ..
D eposits a ccu m u lated fo r p a y m e n t o f personal lo a n s . . . .
F ixe d m a tu rity and o th e r tim e d e p o s its .................................
D em and d e p o s its ..............................................................................

91.5
57.8
(2)
32.7
.9

91.5
66.3
(2)
25.1
.1

91.3
61.6
(2)
29.0
.7

91.2
60.9
(2)
29.7
.7

9 1.3
60 .5
(2)
30 .2
.7

91.5
59.7
(2)
30.9
.9

91.5
58.9
(2)
31.5
1.1

9 1.5
55.8
(2)
34.7
.9

M iscellaneous lia b ilitie s

1.7

1.2

.9

1.0

1.3

1.5

1.6

1.9

6.8
.2
6.7

7.3
.6
6.8

7.8
.5
7.2

7.8
.1
7.7

7.4
.2
7.2

7.0
.2
6.8

6.9
.1
6.8

6.6
.2
6.4

N u m b e r o f b a n k s ..........................................................................................

329

7

23

61

75

105

32

26

1 D o lla r a m ounts o f assets and lia b ilitie s o f all m u tu a l savings banks are show n in
2 Z ero o r less than 0 .0 5 percent.




Assets and Liabilities-Commercial and Mutual Savings Banks (w ith 1975 R e p o rt o f Inco m e ), D e c e m b e r3 1 ,1975.

175

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

S urplus accounts ...................................................................................
C apital notes and debentures .....................................................
O th e r surplus a c c o u n ts .................................................................

LIABI LITIES OF BANKS

100.0%

2.0
8.8
12.6
1.4
5.6

ASSETS AND

100.0%

Cash and due fro m b a n k s ....................................................................
U n ite d States G o v e rn m e n t and agency s e c u r itie s .......................
C orp ora te b o n d s .....................................................................................
State, c o u n ty and m u n ic ip a l o b lig a tio n s ......................................
O th e r s e c u r itie s ......................................................................................
Federal funds sold and securities purchased u n d e r
agreements to re s e ll.........................................................................

176

Table 113. D IS T R IB U T IO N O F IN S U R E D C O M M E R C IA L B A N K S IN T H E U N IT E D S T A T E S (ST A T E S A N D O T H E R A R E A S ),
D E C E M B E R 31, 1975
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS

A ll
ban ks

Less
than
$1 m illio n

$1 m illio n
to
$2 m illio n

$2 m illio n
to
$5 m illio n

$5 m illio n
to
$10 m illio n

$ 1 0 m illio n
to
$ 25 m illio n

$ 25 m illio n
to
$ 50 m illio n

$ 50 m illio n
to
$ 10 0 m illio n

$ 1 0 0 m illio n
to
$50 0 m illio n

$ 50 0 m illio n
to
$1 b illio n

$1 b illio n
or
m ore

15
2
3
2
0
0
1
0
1
0
0
0

71
26
32
22
15
4
7
7
10
3
2
1

347
166
168
250
223
200
149
118
81
50
67
39

268
93
126
249
342
389
459
392
267
198
189
128

128
66
85
216
368
597
698
754
644
513
492
252

23
19
27
55
119
239
338
421
333
248
242
112

3
6
7
23
53
107
169
212
179
132
111
31

1
4
6
19
62
90
143
146
100
65
53
15

0
0
1
1
16
22
21
16
11
6
6
2

0
0
0
9
24
21
19
7
3
1
1
0

R atios o f U.S. T reasury securities to to ta l assets o f Less than 5 ................................................................................
5 to 9 . 9 9 .....................................................................................
10 to 1 4 .9 9 ................................................................................
15 to 1 9 .9 9 ................................................................................
20 to 24.9 9 .................................................................................
25 to 2 9 .9 9 ................................................................................
3 0 to 3 4 .9 9 ................................................................................
35 to 3 9 .9 9 ................................................................................
40 to 4 4 .9 9 ................................................................................
4 5 to 4 9 .9 9 ................................................................................
50 o r m o r e ................................................................................

2,9 6 4
4 ,1 9 4
3,0 6 9
1,681
9 64
537
266
179
114
57
70

4
4
5
2
1
1
0
0
2
0
5

26
45
33
27
16
16
10
6
13
3
5

308
423
349
258
189
111
73
49
35
27
36

634
769
661
427
245
164
96
49
27
15
13

1,054
1,448
1,104
548
332
173
53
53
28
11
9

488
729
493
261
109
44
27
15
8
0
2

2 28
3 86
251
100
40
19
6
2
0
1
0

162
308
138
50
30
9
1
5
1
0
0

26
44
24
7
1
0
0
0
0
0
0

34
38
11
1
1
0
0
0
0
0
0




INSURANCE CORPORATION

8 56
3 82
4 55
846
1,222
1,669
2,0 0 4
2,073
1,629
1,216
1,163
580

DEPOSIT

R atios o f o b lig a tio n s o f States and s u b div is ions to
to ta l assets o f Z e r o .............................................................................................
M ore tha n 0 .0 b u t less th a n 1 .0 ...........................................
1.0 to 2 . 4 9 ................................................................................
2.5 to 4 . 9 9 .................................................................................
5.0 to 7 . 4 9 ................................................................................
7.5 to 9 . 9 9 ................................................................................
10.0 to 1 2 . 4 9 ...........................................................................
12.5 to 1 4 . 9 9 ............................................................................
15.0 to 1 7 . 4 9 ............................................................................
17.5 to 1 9 . 9 9 ...........................................................................
20.0 to 2 4.99 ...........................................................................
25.0 o r m o r e ..............................................................................

FEDERAL

N u m b e r o f banks w ith deposits o f Ratios
(In p erce nt)

6
1
0
1
2
0
2
1
2
1
4
2
2

5
8
5
9
17
17
18
26
19
22
24
15
15

23
31
43
89
124
179
219
226
272
249
190
134
79

11
32
65
108
185
292
375
438
459
4 58
365
210
102

16
25
63
143
228
409
566
816
855
848
514
247
83

4
7
29
47
81
142
265
4 04
456
429
224
73
15

2
2
2
13
37
70
128
198
262
189
94
28
8

1
3
2
9
23
47
76
125
178
167
57
13
3

0
0
0
1
0
3
12
10
40
21
10
4
1

0
0
0
0
2
2
6
19
24
24
8
0
0

R atios o f cash and due fro m banks to to ta l assets o f Less than 5 .................................................................................
5.0 to 7 . 4 9 .................................................................................
7.5 to 9 . 9 9 .................................................................................
10.0 to 1 2 . 4 9 ............................................................... ..
12.5 to 1 4 . 9 9 ............................................................................
15.0 to 1 7 . 4 9 ............................................................................
17.5 to 1 9 . 9 9 ............................................................................
2 0.0 to 24 .9 9 ............................................................................
2 5.0 to 29 .9 9 ............................................................................
3 0 .0 o r m o r e ..............................................................................

1,032
3,553
3 ,566
2,377
1,465
830
483
496
161
132

1
3
3
6
3
3
1
1
2
1

8
31
38
31
28
18
9
18
6
13

159
4 62
425
292
171
108
83
91
40
27

269
889
766
48 5
279
166
86
93
31
36

386
1,305
1,253
842
459
228
141
127
41
31

124
561
616
377
226
129
50
64
18
11

65
198
276
199
128
74
43
40
5
5

18
98
168
118
118
67
52
43
14
8

2
6
18
17
28
15
5
10
1
0

0
0
3
10
25
22
13
9
3
0

R atios o f to ta l dem and de posits to to ta l de posits o f Less than 2 5 ..............................................................................
25 to 2 9 .99 .................................................................................
30 to 3 4 .9 9 .................................................................................
3 5 to 3 9 .9 9 .................................................................................
4 0 to 4 4 .9 9 .................................................................................
4 5 to 4 9 .9 9 .................................................................................
50 to 5 4.99 .................................................................................
55 to 59.99 .................................................................................
60 to 6 4 .9 9 .................................................................................
6 5 to 6 9 .9 9 .................................................................................
70 to 7 9.99 .................................................................................
80 to 8 9.99 .................................................................................
9 0 o r m o r e .................................................................................

1,445
2,128
2,649
2,572
2,059
1,360
820
4 40
226
130
92
53
121

0
2
1
2
1
1
1
1
1
1
2
1
10

4
8
20
23
31
15
18
17
6
8
11
12
27

132
188
314
3 14
294
191
150
99
56
30
19
18
53

290
4 85
609
583
4 33
3 06
156
86
60
34
22
14
22

573
795
953
875
678
437
255
135
49
33
20
5
5

254
391
416
418
317
194
109
41
22
8
5
0
1

129
171
188
206
146
94
52
22
12
4
9
0
0

56
80
129
122
123
88
58
20
11
9
2
3
3

6
5
12
12
24
16
12
7
5
1
2
0
0

1
3
7
17
12
18
9
12
4
2
0
0
0

177




LI ABI LITIES OF BANKS

68
109
209
420
699
1,161
1,667
2,263
2,567
2,408
1,490
726
308

ASSETS AND

R atios o f loans to to ta l assets o f Less tha n 2 0 ..............................................................................
20 to 24.99 .................................................................................
25 to 29.99 .................................................................................
30 to 3 4 .9 9 .................................................................................
3 5 to 39 .9 9 .................................................................................
4 0 to 4 4 .9 9 .................................................................................
4 5 to 4 9 .9 9 .................................................................................
50 to 5 4.99 .................................................................................
55 to 5 9.99 ................................................................................
6 0 to 64 .9 9 ................................................................................
65 to 6 9 .9 9 .................................................................................
70 to 74.99 .................................................................................
75 o r m o r e .................................................................................

178

Table 113. D IS T R IB U T IO N O F IN S U R E D C O M M E R C IA L B A N K S IN T H E U N IT E D S T A T E S (ST A T E S A N D O T H E R A R E A S ),
D E C E M B E R 31, 1975— C O N T IN U E D
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS
N u m b e r o f banks w ith deposits o f R atios
(In pe rcen t)

banks

$1 m illio n
to
$2 m illio n

$2 m illio n
to
$5 m illio n

$5 m illio n
to
$ 10 m illio n

$ 10 m illio n
to
$25 m illio n

$25 m illio n
to
$ 50 m illio n

$ 5 0 m illio n
to
$ 1 0 0 m illio n

$ 1 0 0 m illio n
to
$ 5 0 0 m illio n

$ 500 m illio n
to
$1 b illio n

$1 b illio n
or
m ore

FEDERAL

Less
than
$1 m illio n

2
8
22
34
24
18
12
12
25
14
8
21

23
256
429
324
232
156
116
63
100
63
40
56

90
761
950
559
294
178
95
50
66
28
14
15

266
1,793
1,627
637
264
98
71
21
19
14
1
2

134
981
722
221
65
22
17
3
7
1
3
0

92
494
313
99
16
12
3
3
1
0
0
0

64
365
195
54
17
4
3
0
0
0
1
1

14
51
29
6
2
0
0
0
0
0
0
0

12
46
21
6
0
0
0
0
0
0
0
0

R atios o f to ta l ca p ita l accounts to to ta l assets o f Less th a n 5 .................................................................................
5 to 5 . 9 9 .....................................................................................
6 to 6 . 9 9 .....................................................................................
7 to 7 . 9 9 .....................................................................................
8 to 8 . 9 9 .....................................................................................
9 to 9 . 9 9 .....................................................................................
10 to 1 0 .9 9 ................................................................................
11 to 1 1 .9 9 ................................................................................
12 to 1 2 .9 9 ................................................................................
13 to 1 4 .9 9 ................................................................................
15 to 1 6 .9 9 ................................................................................
17 o r m o r e ................................................................................

252
1,084
3,181
3 ,6 6 7
2,437
1,310
794
449
2 35
282
153
251

0
0
1
0
0
0
2
2
2
6
2
9

0
3
4
29
21
18
22
19
20
16
16
32

13
64
249
3 46
297
228
177
124
58
107
66
129

25
187
598
724
573
3 48
2 45
136
79
77
49
59

106
396
1,199
1,343
887
4 22
214
112
51
51
15
17

52
201
561
658
378
171
85
36
14
14
3
3

23
112
297
307
167
69
32
11
4
9
1
1

28
95
215
201
91
43
13
8
6
2
1
1

2
11
31
35
14
5
2
1
1
0
0
0

3
15
26
24
9
6
2
0
0
0
0
0

N u m b e r o f b a n k s ...........................................................................

14,095

24

200

1,858

3,1 0 0

4,8 1 3

2,176

1,033

704

102

85




CORPORATION

1
0
0
1
0
3
0
1
6
2
1
9

INSURANCE

698
4 ,7 5 5
4 ,3 0 8
1,941
914
491
317
153
2 24
122
68
104

DEPOSIT

R atios o f to ta l c a p ita l accounts to to ta l assets o th e r than
cash and due fr o m banks, and U.S. T reasury
s ecurities, and U.S. G o v e rn m e n t agency securities
o fLess th a n 7 . 5 ..............................................................................
7.5 to 9 . 9 9 .................................................................................
10.0 to 1 2 . 4 9 ............................................................................
12.5 to 1 4 . 9 9 ............................................................................
15.0 to 1 7 . 4 9 ............................................................................
17.5 to 1 9 . 9 9 ...........................................................................
20.0 to 22 .4 9 ...........................................................................
22.5 to 24.99 ...........................................................................
25.0 to 29.99 ............................................................................
30 .0 to 3 4 .9 9 ............................................................................
35 .0 to 39 .9 9 ............................................................................
4 0 .0 o r m o r e ..............................................................................

INCOME OF INSURED BANKS
Table 114.

Income o f insured commercial banks in the United States (States and other areas), 1967-1975

Table 115.

Ratios o f income of insured commercial banks in the United States (States and other areas),
1967-1975
Income o f insured commercial banks in the United States (States and other areas), 1975
Banks grouped by class o f bank

Table 116.
Table 117.

Income o f insured commercial banks operating th ro u g h o u t 1975 in the United States (States
and o ther areas)
Banks grouped b y am ount o f deposits

Table 118.

Ratios o f income of insured commercial banks operating th ro u g h o u t 1975 in the U nited States
(States and other areas)
Banks grouped according to am ount o f deposits

Table 119.

Income of insured mutual savings banks in the U nited States (States and other areas),
1971-1975

Table 120.

Ratios o f income of insured mutual savings banks in the United States (States and other areas),
1971-1975

T h e in co m e data received and pu b lish e d b y th e C o rp o ra tio n relate to
c o m m e rcia l and m u tu a l savings banks insured b y the C o rp o ra tio n .

Commercial banks
P rio r to 19 6 9 , re p o rts o f in c o m e and dividend s were s u b m itte d to th e
Federal su p e rv is o ry agencies o n e ith e r a cash o r an accrual basis. In 1969,
banks w ith assets o f $ 5 0 m illio n o r m o re, and beginning in 1970, $25 m illio n
o r m o re , w ere re q u ire d to re p o rt c o n s o lid a te d incom e accounts on an accrual
basis. S m a lle r banks c o n tin u e to have th e o p tio n o f s u b m ittin g th e ir re ports




on a cash or an accrual basis, e xce p t th a t unearned d is c o u n t on in sta lm e n t
loans, and in co m e taxes, m u st be re p o rte d on an accrual basis. Then, there
was the re q u ire m e n t fo r c o n s o lid a tio n o f m a jo rity -o w n e d subsidiaries and
o th e r n o n b a n k subsidiaries m e eting certain tests. For m ore detail on the
m e th o d o f cash o r accrual re p o rtin g b y banks, and on th e inclusion o f
subsidiaries in c o n so lid a te d statem en ts o f c o n d itio n and incom e, refer to
pages 15 7-15 8 o f th is re p o rt.
Inco m e data are in clu d e d fo r all insured banks o p e ra tin g at the end o f the
respective years, unless in d ica te d oth erw ise. In a d d itio n , w hen a p p ro p ria te ,
ad ju stm en ts have been made fo r banks in o p e ra tio n d u rin g p a rt o f the year
b u t n o t at the end o f the year.

Mutual savings banks

FEDERAL
INSURANCE
C O R P O R A T IO N

F o r a discussion o f th e re p o rt o f in co m e and expenses fo r m u tu a l savings
banks in 19 70 and previous years, see th e 1951 A nnu al R e p o rt, p p . 50 -52.
B eginning D ecem ber 3 1 , 19 7 1 , inco m e and expenses fo r m u tu a l savings
banks are re p o rte d on a c o n s o lid a te d basis in th e same m anner as re quired o f
com m ercial banks, in c lu d in g all do m e stic branches, do m estic b a nk premises
subsidiaries, and o th e r s ig n ific a n t n o n b a n k in g do m e stic subsidiaries (see page
158).
B eginning in 19 72, banks w ith to ta l resources o f $ 2 5 m illio n o r m o re are
required to prepare th e ir re ports on th e basis o f accrual a cco u n tin g . A ll
banks are re q u ire d to re p o rt in co m e taxes on an accrual basis.
U nde r o p e ra tin g incom e, c e rta in inco m e fro m 's e c u ritie s fo rm e rly in the
" o t h e r " cate gory are show n separately be gin n in g in 1971. Incom e fro m U.S.
Treasury secu ritie s is co m b in e d w ith incom e fro m U.S. G o ve rn m e n t agency
and c o rp o ra tio n securities. S om e w h at fe w e r item s are de ta ile d un der o p e r­
ating expense. B eginning in 19 71, actual ne t loan losses (charge-offs less
recoveries) are in clu d e d as an expense ite m in the op e ra tin g section o f the
re p o rt (see discussion b e lo w ). In 19 70 and p r io r years (ta ble 1 1 9 ), the
am ounts sho w n fo r this expense ite m are "R eco veries cre d ite d to va lu a tio n
ad ju stm e n t provision s on real estate m ortgage lo a n s " less "T h e realized losses
charged to va lu a tio n a d ju s tm e n t provision s on these lo a n s ," w h ic h were
re ported in those years in th e m em ora nda section .
The n o n o p e ra tin g sections o f th e re p o rt w ere condensed in 1971, w ith
realized gains and losses on securities, m ortgage loans, and real estate re­
p o rte d " n e t " ra ther tha n in separate sections and cap tio ns as be fore . De­
tailed data fo rm e rly re p o rte d on re c o n c ile m e n t o f v a lu a tio n a d ju s tm e n t p ro ­
visions were a lm o st e n tire ly e lim in a te d , e x c e p t fo r a sim ple re c o n c ilia tio n o f
surplus.

DEPOSIT




stated, com pare d w ith th e c u rre n t o p e ra tin g incom e o f p rio r re ports. On th e
o th e r hand, " N e t in c o m e " fo r years p r io r to 19 69 tends to be som ew hat
understated because it includes transfers to bad d e b t reserves w h ic h w o u ld
generally exceed th e p ro v is io n fo r loan losses. Table 115 provides several
operatin g ra tio s w h ic h a ffo rd com parison s betw een years p r io r to 1969 and
more re cent earnings experience.

180

In 1 9 6 9 th e R e p o rt o f Inco m e was revised to in c lu d e a m ore de taile d
b re a k d o w n o f in v e s tm e n t in co m e and s e p aratio n o f incom e fro m Federal
fu n d s tra n sa c tio n s fro m o th e r loan incom e. The a c c re tio n o f bo nd d is c o u n t
was encouraged.
U n d e r "O p e ra tin g expenses," expense o f Federal fu n d s tra nsaction s,
w h ic h is n o w ite m iz e d sep arately, was in c lu d e d p r io r to 1969 un der " In te r ­
est on b o rro w e d m o n e y ." "In te re s t on cap ita l notes and de b e n tu re s," now
in c lu d e d in o p e ra tin g expenses, b e fo re 19 69 was n o t tre ated as a charge
against o p e ra tin g earnings o r ne t incom e. F ix e d assets were re quired to be
carried on a co st less d e p re c ia tio n basis w ith p e rio d ic d e p re c ia tio n charged to
expenses. B eginning in 1 9 6 9 , th e ite m "P ro v is io n fo r loan losses" was in ­
c lu d e d un der o p e ra tin g expenses. P rio r to 19 6 9 , transfers to loan loss re­
serves w ere in c lu d e d as a charge against ne t in c o m e (b u t n o t against o p e r­
a tin g in c o m e ); actual losses charged to loan loss reserves were tre ated as a
m e m o ra n d u m ite m (see discussion b e lo w ).
B eginn ing in 19 6 9 , "A p p lic a b le in c o m e ta x e s " on incom e b e fo re secur­
ities gains o r losses is an estim a te o f th e ta x lia b ility th a t a bank w o u ld in c u r
if its taxes w ere based s o le ly on o p e ra tin g inco m e and expenses; th a t is, if
th e re w ere no s e c u rity gains or losses, no e x tra o rd in a ry item s, etc.
In co m e fro m securities gains and losses, re p o rte d b o th gross and a fte r
taxes, p r io r to 19 69 was re p o rte d as separate gain o r loss item s. It is now
in c lu d e d , alon g w ith a s u b tra c tio n fo r m in o r ity in te re s t in con solida ted sub­
sidiaries, b e fo re a rriv in g a t ne t in c o m e (a fte r taxes).
T he m e m o ra n d u m ite m to ta l p ro v is io n fo r in c o m e taxes includes a p p li­
cable taxes on o p e ra tin g in c o m e , a p p lic a b le taxes on securities gains and
losses and e x tra o rd in a ry item s, and ta x effects on difference s betw een th e
p ro v is io n fo r loan losses charged to o p e ra tin g expense and transfers to the
reserve fo r bad d e b t losses on loans. F o r banks g e nera lly the transfers to
reserve fo r bad debts have exceeded th e p ro v is io n fo r loan losses and c o n ­
se q u e n tly have te n d e d to reduce ta x lia b ility . (Since en actm e nt o f the Tax
R e fo rm A c t o f 1 9 6 9 , a d d itio n s to loan loss reserves fo r Federal ta x purposes
have been s u b je c t to a schedule o f lim ita tio n s th a t w ill e v e n tu a lly p u t these
reserves on a c u rre n t exp erience basis.)
In co m p a rin g th e 1 9 6 9 -1 9 7 5 re p o rts w ith p r io r data, certain generaliza­
tio n s are a p p lic a b le . Because o f th e in c lu s io n o f a d d itio n a l item s in "O p e r­
atin g expenses," " In c o m e b e fo re taxes o r s e c u rity gains o r losses" is u n d e r­

Sources of data
N a tio n a l banks and S tate banks in th e D is tric t o f C olum b ia n o t m em bers
o f th e Federal Reserve S ystem : O ffic e o f th e C o m p tro lle r o f the C urrency.
S tate b a n k m em bers o f th e Federal Reserve S ystem : Board o f G overnors
o f th e Federal Reserve S ystem .
O th e r insured banks: Federal D e p o sit Insurance C o rp o ra tio n .

R E P O R T IN G O F L O S S E S A N D R E S E R V E S F O R L O S S E S ON LO A N S,
1 9 4 8 -1 9 7 5

Mutual savings banks

BANKS

W hile m u tu a l savings banks re p o rte d loan losses and transfers to loss
reserves p rio r to 1951, th e C o rp o ra tio n 's pu b lish e d sta tistics d id n o t show
these data separately, as was th e case also fo r recoveries and transfers fro m
reserves. W hen th e re p o rtin g fo rm was revised exte n sive ly in 19 51, these
various n o n o p e ra tin g expenses w ere ite m ize d , and a m em oranda section was
added to show also th e losses and recoveries in reserve accounts. "R e a liz e d "
losses (and recoveries) fo r w h ic h no p ro visio n had been m ade, and transfers
w ere in clu d e d in th e n o n o p e ra tin g expense (inco m e) section , w h ile d ire c t
w rite -d o w n s and o th e r loan losses fo r w h ic h p ro v is io n had been made, were
re p o rte d separately in a m e m ora nda a cco unt.
F o llo w in g 1951, th e loan loss section o f th e re ports o f c o n d itio n and
incom e and expense rem ained unchanged u n til 1971. B eginning in 19 71, the
incom e re p o rt was revised in a m anner s im ila r to changes in 1969 ap plicab le
to c o m m e rcia l banks, to show actual net loan losses as o p e ra tin g expenses.
(M u tu a l savings banks d o n o t have th e o p tio n available to com m ercial banks
o f re p o rtin g losses based on recent years average exp erience.) A t th e same
tim e , all va lu a tio n reserves w ere m erged in to surplus accounts on statem ents
o f c o n d itio n s u b m itte d to th e Federal sup ervisory agencies.

INSURED




OF

Use o f th e reserve m e th o d o f loan a cco unting was g re a tly encouraged
w h e n , in 19 47, th e In te rn a l R evenue Service set fo rm a l standards fo r loan
loss tra nsfers to be p e rm itte d fo r Federal ta x purposes. In th e ir re ports to
th e Federal b a n k su p e rv is o ry agencies p rio r to 1948, insured com m ercial
banks in c lu d e d in n o n -o p e ra tin g in c o m e the am ounts o f recoveries on loans
(a p p lica b le to p r io r cha rge-offs fo r losses) w h ic h included , fo r banks using
the reserve m e th o d , tra nsfers fro m loan loss reserves. D ire ct charge-offs and
losses on loans, and tra nsfers to reserves were included tog ethe r in n o n ­
o p e ra tin g expenses. Banks using th e reserve m e thod were n o t required to
re p o rt separately th e ir actu al losses, th a t is, charges against loan loss reserves.
(In statem en ts o f c o n d itio n p rio r to 19 48, insured banks re ported loans on a
net basis o n ly , a fte r a llow ance fo r loan loss reserves. Beginning w ith th e June
30, 1 9 48 re p o rt, banks w ere re q u ire d to re p o rt gross loans, w ith to ta l va lu a ­
tio n reserves, these set up p u rs u a n t to Interna l Revenue Service regulations,
and o th e r reserves sh o w n sep arately. H ow ever, in sta lm e n t loans o rd in a rily
co n tin u e d to be re p o rte d ne t if th e in s ta lm e n t pa ym ents were applied d ire c t­
ly to th e re d u c tio n o f th e loan.)
Beginning w ith th e yea r 19 48, th e incom e reports were revised to show
sep arately, in a m e m o ra n d a s e c tio n , th e losses charged to reserves. These
item s c o n tin u e d to be c o m b in e d in th e no n-op era tin g expense section u n til
1961. Recoveries c re d ite d to reserves w ere also item ized in th e m em oranda
section b e ginning in 1 9 4 8 , as w ere th e am ounts tra nsferred to and fro m

INCOME

Commercial banks

reserves d u rin g th e year. Each o f these d e b its and cre dits w ere segregated as
to reserves set up pu rsuan t to IRS re gulations, and o th e r reserves. Losses and
recoveries, and transfers to and fro m reserves, b u t n o t th e spe cific tax-relate d
transfers, w ere separately re p o rte d in th e C o rp o ra tio n 's pu blishe d statistics.
Several im p o rta n t revisions w ere made in th e fo rm a t o f the incom e re­
p o rts o f co m m e rcia l banks in 1969 (see above). A new e n try e n title d " P ro ­
vision fo r loan losses" was in clu d e d u n der o p e ra tin g expenses. T his item
includes actual loan losses (charge-offs less recoveries) d u rin g the year or, at
the o p tio n o f the bank, an a m o u n t de rived b y a p p ly in g th e average loan loss
percentage fo r th e fiv e m ost recent years to th e average a m o u n t o f loans
d u rin g th e c u rre n t year. Since 19 69, banks c o n tin u e to re p o rt transfers to
and fro m reserves in the m em oranda section o f the incom e statem en t, b u t this
de ta ile d in fo rm a tio n is n o t re gularly publishe d by th e C o rp o ra tio n . (B egin­
ning June 30, 1969, all loan loss reserves are sho w n on th e rig h t side o f th e
c o n d itio n s ta te m e n t; gross loans o n ly are re p o rte d o n th e assets side.)

182

Table 114. INCO M E OF IN S U R E D C O M M E R C IA L BA N K S IN TH E U N IT E D STA TE S (STA TES A N D O TH E R A R E A S ), 1 9 6 7 -1 9 7 5
(A m o u n ts in thousands of d o lla rs)

25,478,404
17,120,0792

34,716,420

36,364,008

40,247,555

53,036,327

68,160,779

66,558,502

20,726,664

22,967,366

23,069,354

25,630,498

35,375,638

47,138,740

43,379,504

1,006,367
3,078,725

871,167
3,395,663

1,026,550
3,396,365

2,486,695
3,465,192

3,712,304
3,441,273

2,294,621
4,440,640

688,421
2,620,257
151,832
1,132,292
1,178,192

916,559
3,127,136
238,033
1,257,807
1,231,470

1,144,761
3,493,981
322,239
1,366,455
1,262,022

1,472,467
3,864,785
371,987
1,459,879
1,326,992

2,018,561
4,453,876
467,873
1,506,206
1,459,858

2,348,937
4,918,518
533,244
1,601,968
1,555,360

478,028
536,249

693,578
686,043

842,480
1,050,488

989,432
1,267,387

1,083,104
1,521,580

1,251,651
1,961,041

1,408,525
2,553,563

1,653,549
3,832,161

16,553,642

19,354,237

24,076,791

27,588,602

29,650,981

32,996,608

44,329,800

58,909,998

57,581,737

4,537,896
667,345
7,379,863

5,101,803
755,744
8,681,705

5,878,812
903,469
9,789,893

6,656,884
1,060,167
10,483,795

7,202,972
1,192,011
12,217,994

7,754,773
1,330,440
13,844,020

8,574,731
1,553,077
19,834,817

9,797,706
1,788,727
27,888,772

10,698,250
1,988,470
26,245,936

266,476

528,986

1,400,838
464,568
104,730
1,254,520

1,095,648
139,388
142,381
1,410,190

1,429,171
115,240
213,532
1,583,538

3,899,016
503,941
254,458
1,782,956

5,985,504
917,638
283,203
2,052,345

3,322,993
377,195
294.098
2,324,644

2,601,900

3,004,655

811,580
2,845,257

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

873,541

970,034

1,059,785
186,244

1,173,423
203,389

1,331,926
258,587

1,555,734
301,214

1,730,402
320,212

1,926,695
343,157

2,152,621
369,665

2,438,528
386,183

2,754,742
430.098

F u r n it u r e a n d e q u ip m e n t, d e p re c ia tio n , r e n ta l c o s ts , s e rv ic in g , e tc . .
P ro v is io n f o r lo a n losses4 .......................................................................................................
O th e r o p e r a tin g e x p e n s e s .......................................................................................................

533,846

631,564

2,294,675

2^684,401

773,072
521,064
3,397,493

909,090
703,150
4,550,860

1,018,128
867,260
4,365,009

1,087,844
973,238
4,664,812

1,201,241
1,264,695
5,460,868

1,360,721
2,286,132
6,549,250

1,532,739
3,612,410
7,185,002

6,730,014

7,127,818

6,713,027

7,250,947

8,706,527

9,250,781

8,976,765

A p p lic a b le in c o m e ta x e s 6 .............................................................................................................

2,164,419

2,173,775

1,689,146

1,707,495

2 ,121,100

2,084,028

1,792,696

I n c o m e b e fo r e s e c u ritie s g a in s o r losses6 ...........................................................................

4,565,595

4,954,043

5,023,881

5,543,452

6,585,427

7,166,753

7,184,069

-237,707

-103,695

213,245

92,456

-27,135

-87,052

37,066

-512,242
-274,535

-224 ,028
-120 ,333

359,279
146,034

166,730
74,274

-73,4 58
-46,3 23

-1 61 ,247
-74,1 95

34,376
-2 ,6 9 0

N e t in c o m e b e fo r e e x t r a o r d i n a r y ite m s 6 ...........................................................................

4,327,888

4,850,348

5,237,126

5,635,908

6,558,292

7,079,701

E x t r a o r d in a r y ch a rg e s o r c r e d its , n e t 6 .................................................................................
G r o s s .....................................................................................................................................................
T a x e s .....................................................................................................................................................

6,914

-12,810

-639

19,153

21,561

11,920

7,221,135
33,779

30,817
9,256

17,877
5,957

46,823
13,044

I n c o m e b e fo r e in c o m e ta x e s a n d s e c u ritie s g a in s o r losses6 ................................

6,124,167

N e t c u r r e n t o p e ra tin g e a rn in g s (o ld b a s i s ) ........................................................................

S e c u ritie s g a in s o r losses, n e t 6 ....................................................................................................
G r o s s .....................................................................................................................................................
T a x e s .....................................................................................................................................................

-4 ,3 1 2

3,994
-2,920

-3 5 ,8 6 5
-23,0 55

-12,5 52
-11,9 13

23,953
4,800

L ess m i n o r it y in te r e s t in c o n s o lid a te d s u b s id ia rie s 6 ..................................................

235

245

282

663

659

357

303

N e t i n c o m e ...............................................................................................................................................

4,334,567

4,837,293

5,236,205

5,654,398

6,579,194

7,091,264

7,254,611

R e c o v e r ie s , c h a r g e -o ffs , tra n s fe rs f r o m re s e rv e s , n e t




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

-904,645

C O R P O R A T IO N

Grossoccupancyexpense...................................................................
Lessrentalincome.................................................................................

1,205,787
433,120
100,742
1,073,339

INSURANCE

411,021
409,711

O p e ra tin g e x p e n s e - t o t a l 4 .............................................................................................................
S a la rie s a n d w a g e s o f o f f ic e r s a n d e m p lo y e e s ........................................................
P e n s io n s a n d o t h e r e m p lo y e e b e n e f i t s ........................................................................
In te re s t o n d e p o s i t s ...................................................................................................................
E x p e n s e o f F e d e r a l fu n d s p u rc h a s e d a n d s e c u ritie s so ld u n d e r
a g re e m e n ts t o r e p u r c h a s e 5 ..........................................................................................
In te r e s t o n o th e r b o r r o w e d m o n e y 5 ..............................................................................
In te re s t o n c a p ita l n o te s a n d d e b e n tu r e s 4 ..............................................................
O c c u p a n c y e x p e n s e o f b a n k p r e m is e s , n e t ..............................................................

14,646,6372

DEPOSIT

21,781,611

FEDERAL

30,806,805

O p e ra tin g i n c o m e - t o t a l ...................................................................................................................
In t e r e s t a n d fee s o n lo a n s 2 ....................................................................................................
In c o m e o n F e d e r a l f u n d s s o ld a n d 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 re s e ll2 ..........................................................................................................
In t e r e s t o n U .S . T r e a s u r y s e c u r i t i e s ..............................................................................
In t e r e s t a n d d iv id e n d s o n s e c u ritie s o f o t h e r U .S . G o v e r n m e n t
a g e n c ie s a n d c o r p o r a t io n s 3 ..........................................................................................
In t e r e s t o n o b lig a t io n s o f S ta te s a n d p o litic a l s u b d iv is io n s 3 ......................
In t e r e s t a n d d iv id e n d s o n o t h e r s e c u ritie s 3 ..............................................................
T r u s t d e p a r tm e n t in c o m e .................................. ‘ ..................................................................
S e rv ic e c h a rg e s o n d e p o s it a c c o u n t s ..............................................................................
O th e r s e rv ic e c h a rg e s , c o lle c t io n a n d e x c h a n g e ch a rg e s , c o m m is s io n s ,
a n d fe e s ......................................................................................................................................
O t h e r o p e r a tin g i n c o m e ..........................................................................................................

T o t a l p r o v is io n f o r in c o m e t a x e s ..................................................................................................
F e d e ra l in c o m e t a x e s ....................................................................................................................
S ta te a n d lo c a l in c o m e ta x e s ..................................................................................................

D iv id e n d s o n c a p i t a l - t o t a l 7 ..............................................................................................................
Cash d iv id e n d s d e c la re d o n c o m m o n s t o c k ...................................................................
Cash d iv id e n d s d e c la re d o n p r e fe r re d s to c k 7 .............................................................
M e m o ra n d a 8
R e c o v e rie s c r e d ite d to reserves:
O n l o a n s ...................................................................................................................................................
O n s e c u r itie s ..........................................................................................................................................
Losses ch a rg e d to reserves:
O n lo a n s ...................................................................................................................................................
O n s e c u r itie s ..........................................................................................................................................

1,267,044

1,505,336

1,863,787

1,651,807

1,598,869

1,715,439

1,759,739

1,727,041

1 , 0 2 0 ,9 8 8
1 5 6 ,1 6 6

1 ,0 8 6 ,8 8 9
1 8 0 ,1 5 5

1 , 2 8 7 ,5 1 4
2 1 7 ,8 2 2

1 , 6 1 9 ,7 9 0
2 4 3 ,9 9 7

1 , 3 6 7 ,4 9 2
2 8 4 ,3 1 5

1 , 2 8 8 ,7 2 5
3 1 0 ,1 4 4

1 , 3 3 6 ,3 1 7
3 7 9 ,1 2 2

1 , 3 5 7 ,3 9 4
4 0 2 ,3 4 5

1 , 2 2 5 ,9 2 7
5 0 1 ,1 1 4

3,141,858

3,425,938

1,426,202

1,589,114

1,769,314

2,040,027

2,230,556

2,196,868

2,429,330

2,768,104

3,032,444

1 , 3 4 2 ,5 3 8
8 3 ,6 6 4

1 ,4 8 8 ,6 7 0
1 0 0 ,4 4 4

1 , 7 6 2 ,2 7 9
7 ,0 3 5

2 , 0 3 3 ,2 8 8
6 ,7 3 9

2 , 2 2 5 ,1 2 5
5 ,4 3 1

2 , 1 9 3 ,0 5 2
3 ,8 1 6

2 , 4 2 5 ,6 3 3
3 ,6 9 7

2 , 7 6 5 ,6 7 4
2 ,4 3 0

3 , 0 3 0 ,2 3 0
2 ,2 1 4

1 6 8 ,6 8 0
5 ,6 3 8

2 1 9 ,1 1 5
1 ,9 1 3

2 0 9 ,1 2 4
1 ,9 8 6

2 5 5 ,3 5 0
1 ,2 6 0

3 1 7 ,3 2 0
2 ,2 5 3

3 6 3 ,6 6 3
6 ,2 4 3

3 8 8 ,8 4 6
2 ,0 6 1

4 6 1 ,3 5 0
1 ,6 5 1

5 4 7 ,3 8 0
691

6 0 1 ,1 9 4
2 9 ,0 7 2

6 2 9 ,7 0 7
3 2 ,2 6 2

6 9 7 ,8 7 4
1 2 ,4 4 8

1 , 2 3 6 ,9 8 8
2 ,8 8 1

1 , 4 0 4 ,5 2 0
3 ,7 1 4

1 , 2 5 0 ,9 8 9
4 ,3 3 3

1 , 5 4 8 ,0 3 3
5 ,4 4 0

2 , 4 1 8 ,2 8 1
3 ,1 2 0

3 , 7 9 0 ,2 1 0
2 ,6 8 9

425,619,337

473,138,013

516,325,483

543,880,408

603,422,720

679,113,973

776,702,572

871,394,495

924,946,738

7 0 ,2 4 8 ,6 7 9
5 7 ,3 5 7 ,5 8 4

7 8 ,5 0 4 ,0 2 4
6 1 ,5 4 5 ,8 0 7

55,213,293

6 5 ,3 1 8 ,3 7 4
2 5 3 , 6 7 8 ,3 1 9

8 6 ,6 6 3 ,3 8 4
5 6 , 7 2 4 , 0 8 3 11
5 8 ,0 1 1 , 2 0 0 11
1 1 , 8 3 9 , 1 3 0 11
2 8 3 , 4 7 9 ,2 5 1
1 9 ,6 0 8 ,4 3 5 "

8 9 ,0 8 9 ,6 0 7
5 4 , 19 8 , 4 0 7 1 1
6 2 ,0 1 2 ,7 7 1 1 1
1 2 , 8 2 1, 6 8 7 1 1
3 0 1 , 6 6 7 ,2 4 2
2 4 ,0 9 0 ,6 9 4 1 1

9 5 ,6 7 3 ,5 2 7
5 9 ,9 2 3 ,5 6 2 1 1
7 4 ,6 0 6 ,1 5 3 1 1
1 8 , 2 1 6 ,0 6 4 1 1
3 2 7 , 6 3 3 ,6 8 7
2 7 ,3 6 9 ,7 2 7 ! 1

1 0 2 , 9 6 9 ,9 3 3
6 1 ,9 7 8 , 4 9 0 11
8 4 ,2 1 0 ,3 9 6 1 1
2 3 ,8 6 3 ,0 5 1 1 1
3 7 6 , 5 4 3 ,3 4 7
2 9 ,5 4 8 ,7 5 6 1 1

1 1 0 , 1 6 8 ,1 4 3
5 8 ,6 0 3 ,9 2 5 1 1
8 9 , 2 4 1 , 7 8 0 11
2 9 ,3 5 5 ,7 1 5 1 1
4 5 3 , 2 3 8 ,9 0 7
3 6 , 0 9 4 , 1 0 2 11

1 2 2 , 2 2 4 ,7 7 3
5 2 ,8 2 2 ,0 4 3 1 1
9 4 ,5 2 4 ,5 3 5 1 1
3 5 , 2 5 6 , 6 0 3 11
5 1 9 , 5 7 2 ,1 3 1
4 6 ,9 9 4 ,4 1 0 1 1

1 2 6 , 8 3 8 ,0 0 7
6 5 ,9 9 2 ,1 4 8 1 1
9 8 ,9 5 3 ,2 7 9 1 1
3 9 ,2 0 3 ,3 4 4 1 1
5 3 6 , 0 6 1 ,7 2 3
5 7 ,8 9 8 ,2 3 7 1 1

2 3 0 , 6 3 6 ,1 4 9

12,163,632

14,091,481

603,422,720

776,702,572

871,394,495

924,946,738

4 0 7 , 5 0 8 ,2 6 0

431,468,339

449,522,141

5 0 7 , 1 0 1 ,9 6 8

568,240,268

6 4 0 , 8 0 6 ,2 0 8

7 1 0 , 0 2 9 ,8 6 8

7 5 6 , 9 4 8 ,5 8 6

Demand deposits...............................................................................
Time and savings deposits.................................................................

194,982,924
173£23,577

213,628,389
193,879,871

230,490,525
200,977,814

237,588,875
211 £33,266

251,447,347
255,654,621

271,122,732
297,117,536

293,708,282
347,097,926

307,363,186
402,666,682

313,836,391
443,112,195

Borrowings and other liab ilities..................................................
Total capital accounts .............................................................

23,836,162
32,876,674

3 0 ,2 9 7 ,6 0 5
3 5 ,3 3 2 ,1 4 8

46,642,486
3 8 ,2 1 4 ,6 5 8

53,212,878
41,145,389

51,507,005
44,813,747

6 1 ,1 7 9 ,8 8 5
4 9 ,6 9 3 ,8 2 0

80,677,846
55,218,518

100,573,737
60,790,890

101,918,202
66,079,950

Capital notes and debentures.............................................................
Equity capital...................................................................................

1,884,844
30,991,830

2,096,175
33,235,973

2,027,427
36,187,231

2,047,429
39,097,960

2,548,014
42265,733

3,546,497
46,147,323

4,044,715
51,173,803

4,204,891
56,585,999

4,328,561
61,751,389

Number of employees (end of period)..............................................

815,037

8 6 6 ,7 2 5

9 0 4 ,0 0 8

959,867

980,660

1 , 0 2 5 ,9 9 7

1,093,616

1,160,585

1,226,415

Number of banks (end of period).....................................................

13,517

13,488

1 3 ,4 7 3

13,511

13,612

13,733

1 3 ,9 7 6

14,228

14,384

BANKS

473,138,013

368,906,501

516,325,483

543,880,408

679,113,973

425,619,337

Total deposits.........................................................................

L ia b ilitie s an d c a p i t a l - t o t a l

OF INSURED

Loans and discounts.................................................................
All other assets........................................................................

4,692,982

1,177,154

INCOME

A v e ra g e assets a n d lia b ilitie s 9
A s s e t s - t o t a l ................................................................................................................................................
Cash a n d d u e f r o m b a n k s ...........................................................................................................
U .S . T r e a s u r y s e c u r it ie s ..............................................................................................................
O b lig a tio n s o f S ta te s a n d p o litic a l s u b d iv is io n s 1 0 .....................
..................
Other securities1 0 ....................................................................

4,319,012

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 1969 are

discussed on pp. 179-181 also see notes to tables.
2"lncom e on Federal funds sold” was included in "Interest and discount on loans" in 1968 and prior years (see 1968 report, p. 198).
3 lncome from "Securities of other U.S. Government agencies and corporations" and from "Obligations of States and political subdivisions" was included in income from "Other securities" in 1968 and 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" was included in "Interest on borrowed m oney" in 1968 and prior years.
6 Data are not available prior to 1969. See page 180 of this report.
7 ln 1968 and prior years, "Dividends declared on preferred stock" was reported in combination with "Interest on capital notes and debentures."
in clu d e s only recoveries credited to, and losses charged to, reserves. All other recoveries and losses on loans and securities are credited to, and charged to, undivided profits and are included above.
9 Averages of amounts reported at beginning, middle, and end of year. 1967 and 1968 averages of securities and loans have been revised to gross basis.
1 0 1n 1968 and prior years, "Obligations of States and political subdivisions" were included in "Other securities."
11 Securities held in trading accounts are included in "A ll other assets."

183




Table 115. RATIOS OF INCOME OF INSURED COMM ERCIAL BANKS IN THE U N ITE D STATES (STATES A N D OTHER A R EAS), 1 9 6 7 -1 9 7 5
1968

1969

1970

1971

1972

1973

1974

1975

$10 0 .0 0
67.24
11.95

$ 1 0 0 .0 0
67.20
11.79

In te re s t and d iv id e n d s on o th e r s ecu rities3 ..........................................................
T ru s t d e p a rtm e n t incom e ........................................................................................
Service charges on d eposit accounts ....................................................................
O ther charges, com m issions, fees, e tc .....................................................................
O th e r o p e ra tin g in c o m e .............................................................................................

8.74
3.77
4.53
1.89
1.88

9.33
3.56
4.14
1.88
2.10

$ 1 0 0 .0 0
69.91
9.23
7 19
2.23
3.32
3.64
2.25
2.23

$ 1 0 0 .0 0
69.05
8.87
7 55
2.42
3.26
3.39
2.43
3.03

$ 1 0 0 .0 0
6 5.84
9.3 4
8 60
3.17
3.46
3.39
2.72
3.48

$ 1 0 0 .0 0
66.23
8.44
8.65
3.64
3.40
3.14
2.67
3.78

$ 1 0 0 .0 0
71.39
6.53
7.29
3.48
2.75
2.50
2.36
3.70

$ 1 0 0 .0 0
74.60
5.05
6.53
3.65
2.21
2.14
2.07
3.75

$ 1 0 0 .0 0
6 8 .6 2
6.67
7.39
4.33
2.41
2.34
2.48
5.76

O perating e x p e n s e -to ta l4 ................................................................................................
Salaries and w a g e s .......................................................................................................
Pensions and o th e r b e n e fits ......................................................................................
In te re st on tim e and savings d e p o s its ....................................................................
In te re s t on b o rro w e d m o n e y 5 .................................................................................
Occupancy expense o f bank premises, n e t ..........................................................
F u rn itu re and e q u ip m e n t, e tc ...................................................................................

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

10.54

10.53

78.15
19.08
2.93
31.78
5.65
3.48
2.51
1.69
11.03

79.47
19.18
3.05
30.20
5.67
3.61
2.62
2.03
13.11

81.54
19.81
3.28
3 3.60
3.79
,.8 8
2.80
2.38
12.00

81.98
19.27
3.30
34.40
4.37
3.93
2.70
2.42
11.59

83.58
16.17
2.93
37.40
8.78
3.36
2.26
2.38
10.30

86.43
14.38
2.62
40 .9 2
10.54
3.01
2.00
3.35
9.61

86.51
16.07
2.99
3 9.43
6.00
3.49
2.30
5.43
10.80

21.85

20.53

18.46

18.02

16.42

13.57

13.49

24.00

24.04

5.12
1.23

5.38
1.29

5.97

6.38

6.03

5.93

6.83

7.82

7 .20

1.30
.84

1.31
.89

1.11
.87

1.07
.83

1.12
.85

1.06
.81

.97
.78

11.4 8 7
4.61
6.71

11.8 9 7
4.94
6.80

11 .8 5 7
4.97
6.71

11 .6 0 7
4.41
6.96

1 2 .1 4 7
4.39
7.51

11 .8 9 7
4 .5 5
7.11

1 1 .1 9 7
4.59
6 .3 9

In com e item

N et c u rre n t o p e ra tin g earnings (o ld b a s is )..................................................................

.74

.72

A m o u n ts per $ 1 0 0 o f to ta l c a p ita l accounts
Net in c o m e 6 .........................................................................................................................
Cash d ivid en ds declared on c o m m o n s t o c k ...............................................................
Net a d d itio n s to c a p ita l fr o m in c o m e .........................................................................

9.56
4.08
5.22

9.70
4.21
5.20

A m o u n ts per $ 1 0 0 o f e q u ity cap ita l
Net in c o m e 6 .........................................................................................................................

10.14

10.31

11.98

12.37

12.39

12.25

12.86

12.53

11.75

Special ra tio s
Incom e on loans per $ 10 0 o f lo an s 1 ............................................................................
Incom e on U.S. T re asu ry securities per $ 1 0 0 o f U.S. T reasury securities . . .
Incom e on o b lig a tio n s o f States and p o litic a l su bdivisions per $ 1 0 0 o f
o b lig a tio n s o f States and p o litic a l s u b d ivisio n s2 ................................................
In com e on o th e r secu ritie s per $ 1 00 o f o th e r securities3 ...................................
Service charges pe r $ 1 0 0 o f dem and d e p o s its ..........................................................
In te re s t paid per $ 1 0 0 o f tim e and savings d e p o s its................................................

6.35
4.54

6.75
4.88

7.60
5.02

7.95
5.68

7.31
5.67

7.08
5.48

8.35
5.91

9 .79
6.51

8.52
6.73

3.45
.51
4.24

3.64
.49
4.48

3.82
5.79
.49
4.87

4.23
6.55
.50
4.95

4.19
6.34
.49
4.78

4.15
6.15
.47
4.66

4.33
6.28
.45
5.71

4.71
7 .05
.47
6 .93

4 .9 7
7.35
.50
5.92

N um b e r o f banks (end o f p e r i o d ) .................................................................................

13,517

13,488

13,473

13,511

13,612

13,733

13,976

14,228

14,384

1 1ncludes Federal fu n d s sold.
2" ln te re s t on S tate and local gove rn m e n t o b lig a tio n s " inclu d e d in ''In te re s t and dividends on oth e r securities" in 1968 and p rio r years. Incom e fro m securities held in tra d in g accounts is included in "O th e r operating in c o m e ",
in c lu d e s interest and divid e n d s on securities o f o th e r U.S. G ove rn m e n t agencies and c o rp o ra tio n s; includes interest on State and local governm ent o b lig a tio n s before 1969.
4 " In te re s t on ca p ita l notes and d e b e n tu re s'', w h ic h is in cluded in ''In te re s t on borrow ed m o n e y ” in 1 9 6 9 -1 9 7 5 , and "P ro v is io n fo r loan losses” were n o t included in "O p e ra tin g e x p e n s e -to ta l” in 1968 and p rio r years,
in c lu d e s interest on capital notes and debentures (see note 4) and Federal fu n d s purchased.
6 Because o f changes in the fo rm o f re p o rtin g by banks, figures in 1 9 6 9 - 1 9 7 5 are n o t fu lly com parable w ith those in 1968 and p rio r years; see table 114 and pp. 179-181.
7 ln c o m p u tin g th is ra tio , inte re st on capital notes and debentures has been added to net incom e, w ith ta x adjustm ent at th e regular c o rp o ra te ta x rate.




INSURANCE CORPORATION

A m o u n ts per $ 1 0 0 o f to ta l assets
O perating i n c o m e - t o t a l ..................................................................................................
Net c u rre n t o pe ra tin g earnings (o ld basis)
Incom e b efo re inco m e taxes and securities gains o r losses
.............
Net in c o m e 6 .........................................................................................................................

DEPOSIT

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

Incom e be fo re in co m e taxes and securities gains o r losses...................................

FEDERAL

O ther o p e ra tin g expenses

184

1967

A m o u n ts per $ 1 0 0 o f o p e ra tin g incom e
O p erating i n c o m e - t o t a l ..................................................................................................
In com e on lo a n s 1 ..........................................................................................................
In te re s t on U.S. T reasury s e c u r itie s .......................................................................

Table 116. INCOME OF INSURED COMM ERCIAL BANKS IN THE U N ITE D STATES (STATES A N D OTHER A R EAS), 1975
BANKS GROUPED BY CLASS OF BANK
(Amounts in thousands of dollars)

N ational

State

N on­
mem bers
F.R . System

O perating
th ro u g h o u t
the year

O perating
less than
fu ll year

M embers F.R . System
Incom e item

T o ta l

1 2 ,4 6 0 ,3 4 3
8 ,2 7 3 ,2 3 4
3 3 1 ,9 4 5
758,721
2 68,3 4 9
8 5 2,026
7 3 ,582
5 30,452
2 02,222
2 7 2,473
897,339

1 5 ,1 9 0 ,7 7 5
9 ,6 3 0 ,6 2 2
579,0 8 6
1,275,112
8 8 5 ,7 1 0
1,342,061
179,455
145,116
4 6 9 ,6 0 5
29 4,096
38 9 ,9 1 2

6 6 ,5 1 6 ,7 2 7
4 3 ,3 6 0 ,1 5 8
2 ,2 8 9 ,4 2 2
4 ,4 3 4 ,6 2 2
2,346,691
4,917 ,8 7 1
53 1 ,6 8 4
1,601,956
1,553,90 0
1,650 ,1 7 0
3 ,8 3 0 ,2 5 3

41 ,7 7 5
19,346
5,199
6,01 8
2,246
647
1,560
12
1,460
3,379
1,908

O perating e x p e n s e -to ta l ......................................................................................................................................
Salaries and wages o f o ffic e rs and e m p lo y e e s .........................................................................................
Pensions and o th e r em ployee b e n e fits ........................................................................................................
Inte re st on d e p o s its ...........................................................................................................................................
Expense o f federal fu n d s purchased and securities sold under agreements to repurchase..........
In te re s t on o th e r b o rro w e d m o n e y .............................................................................................................
In te re s t on ca pita l notes and d e b e n tu re s ...................................................................................................
O ccupancy expense o f b a nk prem ises, n e t................................................................................................
Gross occupancy expense .......................................................................................................................
Less rental income......................................................................................................................................
F u rn itu re and e q u ip m e n t, d e p re c ia tio n , rental costs, servicing, e tc..................................................
P rovision fo r loan lo s s e s .................................................................................................................................
O th e r o perating e x p e n s e .................................................................................................................................

5 7 ,5 8 1 ,7 3 7
1 0 ,698,250
1,988,470
2 6 ,2 4 5 ,9 3 6
3 ,3 2 2 ,9 9 3
3 7 7 ,1 9 5
29 4 ,0 9 8
2 ,3 2 4 ,6 4 4

3 3 ,6 1 7 ,5 0 8
6 ,0 7 9 ,3 5 4
1,149,758
15,24 9 ,5 9 4
2 ,2 6 3 ,4 2 6
24 8,667
149,826
1,282 ,1 8 8

10,792,481
1,984,207
4 1 0 ,7 8 7
4 ,5 5 0 ,7 1 7
887,571
87,1 9 0
77,836
509,827

13,1 7 1 ,7 4 8
2,634,689
4 2 7 ,9 2 5
6 ,4 4 5 ,6 2 5
171,996
4 1 ,3 3 8
6 6,436
532,629

5 7 ,5 2 5 ,1 5 7
1 0,682,734
1,986,933
2 6 ,2 3 3 ,3 7 4
3 ,3 2 2 ,7 9 2
3 7 7 ,0 3 0
29 4 ,0 3 5
2,3 2 0 ,0 2 6

56,580
15,516
1,537
12,562
201
165
63
4,61 8

2,754,742
430,098

1,565,010
282,822

589,795
79,968

599,937
67,308

2,750,075
430,049

4,667
49

1,532,739
3 ,6 1 2 ,4 1 0
7 ,1 8 5 ,0 0 2

9 0 2 ,2 5 0
2 ,2 2 4 ,2 8 2
4 ,0 6 8 ,1 6 3

251,9 7 9
826,013
1,206,354

3 7 8 ,5 1 0
562,1 1 5
1,910,485

1,529,758
3 ,6 1 0 ,8 1 8
7 ,1 6 7 ,6 5 7

2,981
1,592
17,345

Incom e before incom e taxes and securities gains o r lo s s e s .......................................................................

8 ,9 7 6 ,7 6 5

5 ,2 8 9 ,8 7 6

1 ,6 6 7 ,8 6 2

2 ,0 1 9 ,0 2 7

8 ,9 9 1 ,5 7 0

- 1 4 ,8 0 5

A p p lic a b le incom e ta x e s .........................................................................................................................................

1 ,7 9 2 ,6 9 6

1 ,0 6 8 ,5 6 4

38 4 ,3 4 6

33 9 ,7 8 6

1 ,7 9 4 ,4 0 4

- 1 ,7 0 8

Incom e before securities gains o r lo s s e s ..........................................................................................................

7 ,1 8 4 ,0 6 9

4 ,2 2 1 ,3 1 2

1 ,2 8 3 ,5 1 6

1,679,241

7 ,1 9 7 ,1 6 6

-1 3 ,0 9 7

N e t securities gains o r losses ..............................................................................................................................
G ro ss......................................................................................................................................................................
T a xes......................................................................................................................................................................

37 ,0 6 6
3 4 ,376
-2 ,6 9 0

15,998
19,095
3 ,0 9 7

1,388
- 1 1 ,9 4 3
-1 3 ,3 3 1

19,680
2 7,224
7,544

3 6 ,9 5 4
34 ,2 3 2
- 2 ,7 2 2

112
144
32

N et in co m e before e x tra o rd in a ry i t e m s ..........................................................................................................

7 ,2 2 1 ,1 3 5

4 ,2 3 7 ,3 1 0

1 ,2 8 4 ,9 0 4

1,698,921

7 ,2 3 4 ,1 2 0

- 1 2 ,9 8 5

E x tra o rd in a ry charges or c re d its, n e t ...............................................................................................................
G ro ss......................................................................................................................................................................
T axes.......................................................................................................................................................................

3 3 ,779
46 ,8 2 3
13,044

21 ,7 9 5
3 4 ,6 4 4
12,849

1,683
724
-9 5 9

10,301
11,455
1,154

33 ,7 7 5
4 6 ,8 1 9
13,044

4
4
0




185

3 8 ,9 0 7 ,3 8 4
2 5 ,4 7 5 ,6 4 8
1,383,590
2 ,4 0 6 ,8 0 7
1 ,194,878
2,724,431
2 80,207
9 2 6 ,4 0 0
883,533
1,086,980
2 ,5 4 4 ,9 1 0

BANKS

6 6 ,5 5 8 ,5 0 2
4 3 ,3 7 9 ,5 0 4
2,294,621
4 ,4 4 0 ,6 4 0
2,34 8 ,9 3 7
4 ,9 1 8 ,5 1 8
533,2 4 4
1,601,968
1 ,555,360
1,653,549
3,832,161

INCOME OF INSURED

O p erating in c o m e - t o t a l .........................................................................................................................................
In te re s t and fees on lo a n s ..............................................................................................................................
In com e on federal fu n d s sold and se curities purchased und e r agreements to r e s e ll....................
In te re s t on U.S. T re asu ry se curities ..........................................................................................................
In te re s t and divide n ds on securities o f o th e r U.S. G o vernm ent agencies and c o rp o ra tio n s . . .
In te re s t on o b lig a tio n s o f States and p o litic a l s u b d iv is io n s ................................................................
In te re s t and divid en d s on o th e r s e c u r itie s ................................................................................................
T ru s t d e p a rtm e n t i n c o m e ..............................................................................................................................
Service charges on d e p o s it a c c o u n t s ..........................................................................................................
O th e r service charges, c o lle c tio n and exchange charges, com m issions, and fe e s ...........................
O th e r ope ra tin g incom e .................................................................................................................................

186

Table 116. INCOME OF INSURED C O M M ER C IA L BANKS IN THE UNITED STATES (STATES A N D OTHER AR EAS), 19 75-C O N T IN U E D
BANKS GROUPED BY CLASS OF BANK
(Amounts in thousands of dollars)
N on­
mem bers
F .R . System

Members F .R . System
Incom e item

Total
N ational

State

O perating
th ro u g h o u t
the year

O perating
less than
fu ll year

171

303

0

1,286,587

1,709,051

7,267,592

-1 2 ,9 8 1

D ividends on c a p i t a l- t o t a l ....................................................................................................................................
Cash divide nd s declared on c o m m o n s t o c k ...............................................................................................
Cash d ivid en d s declared on pre fe rre d s to c k ...............................................................................................

3,032,444
3 ,030,230
2,214

1,821,388
1,820,564
824

654,625
6 5 4 ,4 5 7
168

556,431
555,209
1,222

3,032,283
3 ,0 3 0 ,0 6 9
2 ,214

161
161
0

T o ta l p ro v is io n fo r in c o m e t a x e s ........................................................................................................................
Federal inco m e taxes .......................................................................................................................................
S tate and local incom e t a x e s ..........................................................................................................................

1,727,041
1,225,927
501,114

1,038,289
8 02,143
2 3 6,146

367,606
169,034
198,572

321,146
2 5 4 ,7 5 0
6 6 ,3 9 6

1,728,813
1,227,584
5 0 1 ,2 2 9

- 1 ,7 7 2
-1 ,6 5 7
-1 1 5

M e m o ra n d a 1
Recoveries cred ite d to reserves:
On lo a n s ................................................................................................................................................................
On s e c u r itie s ........................................................................................................................................................
Losses charged to reserves:
On lo a n s ................................................................................................................................................................
On s e c u r itie s ........................................................................................................................................................

547,380
691

3 5 6 ,1 7 2
261

70,993
54

120,215
376

5 47,312
691

68
0

3,790,210
2,689

2 ,3 8 1 ,3 0 4
1,212

775,633
2 10

6 3 3,273
1,267

3 ,7 8 9 ,9 8 8
2 ,689

222
0

N u m b e r o f em ployees (end o f p e r i o d ) ..............................................................................................................

1,226,415

7 3 2,560

181,749

312,1 0 6

1,222,47 4

3,941

N u m b e r o f banks (end o f p e r io d ) ........................................................................................................................

14,384

4,7 4 4

1,046

8,594

14,138

246

1 1ncludes o n ly recoveries c re d ite d , and losses charged, to reserves. A ll o th e r recoveries and losses on loans and securities are cre d ite d and charged to u n d ivid e d p ro fits and are in cluded above.




INSURANCE CORPORATION

0

4,258,973

DEPOSIT

132

7,254,611

N et in com e

FEDERAL

303

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

Less m in o r ity in te re s t in con so lid a te d s u b s id ia rie s .......................................................................................

Table 117. INCOME OF INSURED C O M M ERCIAL BANKS OPERATING TH R O U G H O U T 1975 IN THE U N ITE D STATES
(STATES A N D OTHER AREAS)
BANKS GROUPED BY AMOUNT OF DEPOSITS
(Amounts in thousands of dollars)
Banks w ith deposits o fIn com e ite m

$1 m illio n
to
$2 m illio n

$2 m illio n
to
$5 m illio n

$5 m illio n
to
$ 1 0 m illio n

$ 10 m illio n
to
$25 m illio n

$ 25 m illio n
to
$50 m illio n

$50 m illio n
to
$ 1 0 0 m illio n

$ 1 0 0 m illio n
to
$ 50 0 m illio n

$ 5 0 0 m illio n
to
$1 b illio n

$1 b illio n
or
m ore

Operating in c o m e -to ta l ......................................
In te re s t and fees on lo a n s ...........................................
Incom e on federal fu n d s sold and securities
purchased u n d e r agreem ents to r e s e l l.............
In te re s t on U.S. T re asu ry s e c u r it ie s .......................
In te re st and d ividends on securities o f o th e r
U.S. G o ve rn m e n t agencies and c o rp o ra tio n s .
In te re st on o b lig a tio n s o f States and
p o litic a l s u b d iv is io n s .............................................
In te re s t and d ivid en ds on o th e r s e c u ritie s .............
T ru s t d e p a rtm e n t in c o m e ...........................................
Service charges on d e p o sit a c c o u n ts .......................
O th e r service charges, c o lle c tio n and exchange
charges, com m issions, and f e e s .........................
O th e r o p e ra tin g i n c o m e .............................................

66,516,727
43 ,3 6 0 ,1 5 8

5,179
602

25,476
13,586

545,241
3 0 3 ,9 5 4

1,771,545
1,052,641

6,030,574
3 ,7 3 2 ,3 9 5

5,941,339
3 ,7 7 9 ,1 5 3

5,619,848
3 ,6 1 7 ,8 1 7

11,720,994
7,571,251

6,499,812
4 ,3 0 7 ,7 8 7

28,356,719
18,980,972

2 ,2 8 9 ,4 2 2
4 ,4 3 4 ,6 2 2

221
514

2,496
4,425

35 ,3 8 9
76,171

9 6,673
2 0 0,824

2 7 6 ,0 9 0
5 8 0,087

2 3 1 ,9 1 4
51 2 ,6 9 8

191,102
4 4 2 ,6 3 7

4 3 9 ,0 4 5
794,203

25 6 ,1 7 4
4 0 8 ,2 1 3

760 ,3 18
1,414,850

2,346,691

329

2,066

5 1,698

148,047

3 9 0 ,9 9 2

3 1 6 ,9 0 0

274,159

502,9 3 0

142,455

517,115

4 ,9 1 7 ,8 7 1
5 3 1,684
1,601,956
1,553,900

17
6
3 ,364
29

798
304
0
814

26,481
6 ,279
5,167
1 6,498

134,381
16,360
5,459
58,378

576,331
56,646
18,128
2 0 1,056

5 9 6 ,2 1 8
6 2 ,3 3 6
3 5 ,2 3 6
199,089

564,8 7 0
67 ,2 8 6
80,605
164,834

1,024,501
129,772
31 6 ,1 4 2
3 0 3,926

515,9 8 2
6 3 ,3 4 8
189,281
161,206

1,478,292
129,347
948,574
448,0 7 0

1,6 5 0 ,1 7 0
3 ,8 3 0 ,2 5 3

78
19

518
469

14,835
8,769

32,311
26,471

103,997
94 ,8 5 2

104,677
103,118

105,740
110,798

3 2 0 ,6 9 5
31 8,529

20 3 ,6 2 8
2 5 1,7 3 8

763,691
2 ,9 15 ,4 90

Operating e x p e n s e - t o t a l ......................................
Salaries and wages of o ffic e rs and e m ployees . . .
Pensions and o th e r e m plo yee b e n e f i t s ..................
In te re s t on d e p o s its .....................................................
Expense o f federal fu n d s purchased and securi­
ties sold u n d e r agreements to re p u rc h a s e .. . .
In te re st on o th e r b o rro w e d m o n e y .........................
In te re s t on ca pital notes and d e b e n t u r e s .............
O ccupancy expense o f b an k prem ises, n e t ..........
Gross occupancy expense...................................
Less rental income...................................................
F u rn itu re and e q u ip m e n t, d e p re c ia tio n , rental
costs, servicing, e tc ..................................................
P rovision fo r loan lo s s e s ..............................................
O th e r o p e ra tin g e xp e n s e ..............................................

57,525,157
1 0 ,682,734
1,986,933
2 6 ,2 3 3 ,3 7 4

4,862
2,484
432
232

21,791
7,626
726
7,176

472,171
123,327
14,690
20 6 ,7 5 3

1,503,705
3 3 1 ,5 5 7
45 ,1 0 9
744,2 6 5

5,103,559
1,006,834
156,718
2 ,6 5 8 ,2 1 2

5,111,948
9 7 2 ,5 0 2
162,104
2 ,6 2 6 ,0 8 5

4,883,164
9 2 8 ,4 8 2
159,924
2 ,4 6 8 ,7 7 0

10,370,004
2 ,0 3 0 ,3 8 2
3 6 4 ,2 9 0
4,689,851

5,773,017
1,112,139
20 6 ,7 3 5
2 ,3 8 7 ,5 9 5

24,280,936
4,1 6 7,4 01
876,205
10,444,435

3 ,3 2 2 ,7 9 2
3 7 7 ,0 3 0
294,035
2,3 2 0 ,0 2 6

0
1
0
196

9
14
9
897

638
390
3 28
17,819

2,883
1,525
1,639
53,246

18,303
6,3 9 4
11,171
1 7 9,780

3 7 ,8 0 2
9,677
16,485
197,464

67 ,9 0 7
7,821
21,533
199,429

43 8 ,3 4 3
33,811
57,454
4 7 2 ,1 4 8

3 7 7 ,6 1 8
35 ,2 7 2
3 7 ,5 7 0
2 4 3 ,4 4 4

2,379,289
282,125
147,846
955 ,6 03

2,750,075
430,049

197
1

933
36

18,734
915

56,301
3,055

190,999
11,219

217,957
20,493

227,531
28,102

572,518
100,370

324,110
80,666

1,140,795
185,192

203
35
1,279

757
619
3,958

15,879
15,386
76,961

4 5 ,5 1 6
4 8 ,2 7 4
229,691

146,051
173,541
74 6 ,5 5 5

145,279
2 0 4 ,5 9 2
7 3 9 ,9 5 8

145,061
197,463
68 6 ,7 7 4

348,011
4 9 9 ,2 8 8
1,436,426

184,470
38 7 ,5 7 7
8 0 0,597

498,531
2,084,043
2,445,458

Incom e before income taxes and securities gains
or l o s s e s .........................................................

8,991,570

317

3,685

73,070

267,840

927,015

829,391

736,684

1,350,990

726,795

4,075,783

Applicab le income t a x e s ......................................

1,794,404

120

1,096

18,031

56,937

167,599

119,429

95,536

186,544

100,836

1,048,276




187

1 ,529,758
3 ,6 1 0 ,8 1 8
7 ,1 6 7 ,6 5 7

BANKS

Less
than
$1 m illio n

INCOME OF INSURED

A ll
ban ks1

188

Table 117. INCOME OF INSURED COM M ERCIAL BANKS OPERATING TH R O U G H O U T 1975 IN THE U N ITE D STATES
(S TA T E S A N D O T H E R A R E A S )— C O N T IN U E D
BANKS GROUPED BY AMOUNT OF DEPOSITS
(Amounts in thousands of dollars)
Banks w ith deposits o f A ll
ban ks1

Less
than
$1 m illio n

$1 m illio n
to
$2 m illio n

$2 m illio n
to
$5 m illio n

$5 m illio n
to
$10 m illio n

$ 10 m illio n
to
$25 m illio n

$25 m illio n
to
$ 5 0 m illio n

$ 5 0 m illio n
to
$ 1 0 0 m illio n

$ 1 0 0 m illio n
to
$ 5 0 0 m illio n

$ 5 0 0 m illio n
to
$1 b illio n

$1 b illio n
or
m ore

197

2,589

55,039

210,903

759,416

709,962

641,148

1,164,446

625,959

3,027,507

36,954
3 4 ,2 3 2
-2 ,7 2 2

3
0
-3

24
31
7

775
868
93

3,080
3 ,8 7 2
792

9,076
12,127
3,051

6,234
8,172
1,938

4,817
7,253
2,436

7,818
13,404
5,586

1,900
339
-1 ,5 6 1

3,227
- 1 1 ,8 3 4
- 1 5 ,0 6 1

N e t incom e before e x tra o rd in a ry i t e m s .......................

7,234,120

200

2,613

55,814

213,983

768,492

716,196

645,965

1,172,264

627,859

3,030,734

E x tra o rd in a ry charges o r cre d its, n e t ............................
G r o s s .................................................................................
Taxes .................................................................................

33,775
46 ,8 1 9
13,044

0
0
0

13
14
1

-1 3
70
83

777
920
143

4,185
5,211
1,026

5,840
6,7 3 5
895

2,407
2 ,798
391

6,668
8,232
1,564

3,447
3,659
212

10,451
19,180
8,729

303

0

0

0

2

121

21

39

-4 2

68

94

7,267,592

200

2,626

55,801

214,758

772,556

722,015

648,333

1,178,974

631,238

3,041,091

D ividends on c a p ita l- to ta l .............................................
Cash dividends declared on c o m m o n s to c k ..........
Cash d ivid e n d s declared on p re fe rre d s to c k ..........

3,032,283
3 ,0 3 0 ,0 6 9
2 ,2 1 4

44
44
0

800
800
0

14,734
14,732
2

49,917
49 ,8 3 9
78

200,847
200,639
208

223,949
223,661
288

232,143
231,681
462

532,568
53 1 ,6 2 0
9 48

329,279
3 2 9,2 3 9
40

1,448,002
1 ,44 7 ,81 4
188

T o ta l p ro v is io n fo r in com e ta x e s ...................................
Federal inco m e t a x e s ..................................................
S tate and local in com e taxes ...................................

1,728,813
1,22 7 ,5 8 4
501,2 2 9

117
111
6

1,076
962
114

17,534
15,473
2,061

54,846
4 7 ,7 4 4
7,102

157,639
135,481
22,158

108,050
89,607
18,443

85,240
6 5 ,3 7 5
19,865

169,168
117,683
5 1 ,485

96,666
73,1 79
2 3,4 87

1,038,477
6 81 ,9 6 9
3 5 6 ,5 0 8

M e m o ra n d a 2
Recoveries c re d ite d to reserves:
On lo a n s ...........................................................................
On securities .................................................................
Losses charged to reserves:
On lo a n s ...........................................................................
On s e c u ritie s ....................................................................

54 7 ,3 1 2
691

8
0

161
0

4,430
0

17,040
98

64 ,852
321

6 2 ,2 3 2
170

4 9 ,4 5 7
54

99,441
4

58 ,9 4 4
0

190,747
44

3 ,7 8 9 ,9 8 8
2,689

6
0

651
0

15,463
2

5 9 ,837
188

22 2 ,2 6 2
378

2 5 8 ,5 5 0
759

2 3 2,486
153

565,293
290

3 9 0 ,1 4 2
580

2 ,0 4 5 ,2 9 8
339

N u m b e r o f em ployees, Decem ber 3 1 ............................

1,22 2 ,4 7 4

229

1,027

15,022

4 0 ,5 7 4

125,494

124,204

118,353

240,009

121,901

4 35,661

N u m b e r o f banks, Decem ber 3 1 ......................................

14,138

24

204

1,877

3,1 1 0

4 ,8 1 8

2,177

1,036

705

102

85

1This group o f banks is the same as the group show n in table 116 und e r the heading "O p e ra tin g th ro u g h o u t the year.”
in c lu d e s o n ly recoveries c re d ite d , and losses charged, to reserves. A ll o th e r recoveries and losses on loans and securities are c re d ite d , and charged, to u n d ivid e d p ro fits and are included above.




CORPORATION

Less m in o rity in te re s t in c o n so lid a te d s u b s id ia rie s ..
N e t i n c o m e ............................................................................

INSURANCE

7,197,166

N et securities gains o r losses..............................................
G r o s s ................................................................................
Taxes ................................................................................

DEPOSIT

Incom e b e fore secu ritie s gains o r lo s s e s .......................

FEDERAL

In com e item

Table 118. RATIO S OF INCOME OF INSURED COM M ERCIAL BAN KS OPERATING TH R O U G H O U T 1975 IN THE U N ITE D STATES
(S TAT ES A N D O T H E R A R E A S )1
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS
Banks w ith deposits o f Inco m e item

Less
than
$1 m illio n

$1 m illio n
to
$2 m illio n

$2 m illio n
to
$5 m illio n

$5 m illio n
to
$ 10 m illio n

$ 10 m illio n
to
$25 m illio n

$25 m illio n
to
$50 m illio n

$50 m illio n
to
$ 1 0 0 m illio n

$ 1 0 0 m illio n
to
$ 5 0 0 m illio n

$5 0 0 m illio n
to
$1 b illio n

$1 b illio n
or
m ore

O pera ting i n c o m e - t o t a l ...........................................................................................
In com e on loa ns2 ..................................................................................................
In te re s t on U.S. T reasury sec u rities 3 ............................................................
In te re s t on State and local g o v e rn m e n t o b lig a tio n s 3 ..............................
In te re s t and d ivid en ds on o th e r s e c u ritie s4 ................................................
T ru s t d e p a rtm e n t in com e ................................................................................
Service charges on d e p o s it a c c o u n ts ...............................................................
O th e r charges, com m issions, fees, e tc .............................................................
O th e r o p e ra tin g in co m e 3 ...................................................................................

$ 1 0 0 .0 0
15.89
9.92
.33
6.47
64.95
.56
1.51
.37

$ 1 0 0 .0 0
63.13
17.37
3.13
9 .30
.00
3.20
2.03
1.84

$ 1 0 0 .0 0
6 2 .2 4
13.97
4.8 6
10.63
.95
3.03
2.72
1.61

$ 1 0 0 .0 0
6 4 .8 8
11.34
7.59
9.2 8
.31
3.30
1.82
1.49

$ 1 0 0 .0 0
66 .4 7
9.6 2
9.56
7.42
.30
3.33
1.72
1.57

$ 1 0 0 .0 0
67.51
8.63
10.04
6.38
.59
3.35
1.76
1.74

$ 1 0 0 .0 0
67.7 8
7.88
10.05
6.08
1.43
2.93
1.88
1.97

$ 1 0 0 .0 0
68 .3 4
6.78
8.74
5.40
2.70
2.59
2.74
2.72

$ 1 0 0 .0 0
70.22
6.2 8
7 .94
3.17
2.91
2.48
3.13
3.87

$ 1 0 0 .0 0
6 9.62
4.9 9
5.21
2.28
3.35
1.58
2.69
10.28

O perating e x p e n s e - to ta l...........................................................................................
Salaries and w a g e s ................................................................................................
Pensions and o th e r b e n e fits ..............................................................................
In te re s t on tim e and savings d e p o s its ............................................................
In te re st on b o rro w e d m o n e y 5 .........................................................................
O ccupancy expense o f bank prem ises, n e t ..................................................
F u rn itu re and e q u ip m e n t, e tc ............................................................................
P rovision fo r loan losses ...................................................................................
O th e r o p e ra tin g expenses...................................................................................

93.88
47.96
8.34
4 .4 8
.02
3.78
3 .9 2
.68
24.70

85.54
29.93
2.85
28.17
.13
3.52
2.97
2.43
15.54

86 .6 0
2 2.62
2.69
37 .9 2
.25
3.27
2.91
2.82
14.12

84 .8 8
18.72
2.55
42.01
.34
3.01
2.57
2.72
12.97

84.63
16.70
2.60
44 .0 8
.59
2.98
2.42
2.88
12.38

8 6 .0 4
16.37
2.73
4 4 .2 0
1.08
3.32
2.45
3.44
12.45

86.89
16.52
2.85
43 .9 3
1.73
3.55
2.58
3.51
12.22

88.47
17.32
3.11
4 0.01
4 .5 2
4.03
2.97
4 .2 6
12.26

8 8.82
17.11
3.18
36.73
6.93
3.75
2.84
5.96
12.32

85.63
14.70
3.09
36.83
9.91
3.37
1.76
7.35
8.62

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

6.12

14.46

13.40

15.12

15.37

13.96

13.11

11.53

11.18

14.37

O pera ting i n c o m e - t o t a l ...........................................................................................
Incom e b e fo re inco m e taxes and secu ritie s gains or losses .........................
N et in c o m e ....................................................................................................................

19.36
1.18
.75

6.68
.97
.69

6.9 4
.93
.71

6.85
1.04
.83

6.87
1.06
.88

6.95
.97
.85

6.97
.91
.80

7.05
.81
.71

7 .20
.81
.70

7.05
1.01
.76

.03
0

.04
0

.07

(7 )

.07
0

.06
0

(7 )

.02
0

.17
0

(7 )

.30
0

.29
0

(7 )

A m o u n ts pe r $ 1 0 0 o f o p e ra tin g incom e

INCOME OF INSURED
BANKS

In co m e b e fo re in co m e taxes and securities gains o r losses
A m o u n ts per $ 1 0 0 o f to ta l assets6




.06

.20

.07
(7 )

.23
(7 )

(7 )

.25
(7 )

.06

.34

.07
(7 )

.43
(7 )

.05
(7 )

.51
(7 )

189

M e m o ra n d a 8
Recoveries c re d ite d to reserves:
On loans .................................................................................................................
On s e c u r it ie s ..........................................................................................................
Losses charged to reserves:
On loans ..................................................................................................................
On s e c u r it ie s ..........................................................................................................

190

Table 118. R A T IO S OF IN C O M E OF IN S U R E D C O M M E R C IA L B A N K S O P E R A T IN G T H R O U G H O U T 1975 IN T H E U N IT E D S T A T E S
(ST A T E S A N D O T H E R A R E A S ) 1- C O N T IN U E D
BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS
Banks w ith deposits o f In com e item

$1 m illio n
to
$2 m illio n

$2 m illio n
to
$5 m illio n

$5 m illio n
to
$10 m illio n

$10 m illio n
to
$25 m illio n

$ 25 m illio n
to
$ 5 0 m illio n

$50 m illio n
to
$100 m illio n

$ 1 0 0 m illio n
to
$ 5 0 0 m illio n

$ 5 0 0 m illio n
to
$1 b illio n

$1 b illio n
or
m ore

A m o u n ts pe r $ 1 0 0 o f to ta l c a p ita l a cco u n ts6
11.38
2.94
8.36

11.19
3.43
7.64

10.96
3.85
6.92

.95

.95
0

.82
0

3.25
.01

3.97
.01

9 .62

11.58

5.23
1.59
3.63

.10
0

.32
0

(7 )

(7 )

(7 )

.08
0

1.29
0

1.90
(7 )

2.65
.01

2.55

5.23

6.91

.55

.76

10.09
4.45
5.40

.83

9 .92
5.03
4.61

.90

11.33
5.27
5.80

.69

(7 )

(7 )

(7 )

3.87
0

4.73

5.96
.01

7.45

11.48

11.35

10.53

10.56

12.12

(7 )

(7 )

INSURANCE

M e m o ra n d a 8
Recoveries c re d ite d to reserves:
On loans .................................................................................................................
On s e c u r itie s .........................................................................................................
Losses charged to reserves:
On loans .................................................................................................................
On s e c u r itie s ..........................................................................................................

6.89
1.81
5.06

9.55
2.21
7.30

2.55
.56
1.99

DEPOSIT

N et in c o m e 9 .................................................................................................................
Cash d ivid en d s declared on c o m m o n s t o c k .......................................................
N et a d d itio n s to capital fro m i n c o m e .................................................................

FEDERAL

Less
than
$1 m illio n

A m o u n ts per $ 1 0 0 o f e q u ity c a p ita l6

Special ra tio s6
Incom e on loans per $ 1 0 0 o f loans2 ....................................................................
Incom e on U.S. T reasury securities per $ 1 0 0 o f U.S. Treasury securities?
Incom e on oblig a tio n s o f States and p o litic a l subdivisions per $ 100
o f o b lig a tio n s o f States and p o litic a l subdivisions3 ...................................
Incom e on o th e r securities per $ 1 0 0 o f o th e r securities4 ..............................
Service charges per $ 1 0 0 o f dem and d e p o s its ..................................................
In te re s t paid per $ 1 0 0 o f tim e and savings deposits ......................................

7.74
6.77

7.95
6.48

8.01
6.28

8.12
6.07

8.31
5.88

8.50
5.72

8.51
5.65

8.61
5.40

8.68
5.69

8.51
5.12

4.51
8.69
.21
4.93

5.43
6.86
.45
4.99

4.83
7.26
.58
5.18

4.78
7.01
.67
5.25

4.80
6.83
.71
5.36

4 .85
6.97
.74
5.47

4.88
6.92
.64
5.52

4.80
6.99
.54
5.56

4.84
7.22
.51
5.69

5.01
7.52
.32
6.16

N u m b e r o f banks, D ecem ber 31, 1975 ...............................................................

24

204

1,877

3,110

4,8 1 8

2,177

1,036

705

102

85

1 T his group o f banks is th e same as the group show n in table 116 u n d e r heading "O p e ra tin g th ro u g h o u t the ye a r.''
in c lu d e s Federal fun ds.
3 ln c o m e fro m securities held in tra d in g accounts is in clu d e d in " O th e r o p erating in c o m e ."
4 lnclu de s in te re s t and d ivid e n d s on securities o f o th e r U.S. G o vernm ent agencies and corp o ra tio n s,
in c lu d e s in te re s t on ca p ita l notes and d ebentures and Federal fu n d s purchased.
6 Ratios are based on assets and lia b ilitie s re ported at end o f year.
7 Less tha n 0 .0 05 .
i n c lu d e s o n ly recoveries c re d ite d , and losses charged, to reserves (see table 117, note 2).
9 R e po rted data are adju sted (see ta ble 115, note 7).




CORPORATION

N et in c o m e ...................................................................................................................

Table 119. INCOME OF INSURED M U T U A L SAVINGS BANKS IN THE U N ITE D STATES (STATES A N D OTHER AR EAS), 1 9 7 1 -1 9 7 5
(Amounts in thousands of dollars)
Incom e item

1972

1973

1974

1975

5,295,449
3,690,871

6,064,895
4 ,1 7 1 ,5 2 0

6,483,654
4 ,5 0 3 ,2 1 4

7,179,294
4,817,741

3,760,908
70,037

4,240,926
69,406

4,570,902
67,688

4,883,664
65,923

163,675
2 6 8,370
54 6 ,0 3 3
12,789
75,489
105,592
27 ,6 6 9
53 ,5 3 8

178,126
35 2 ,2 9 7
72 6 ,6 6 5
30,857

28 3 ,5 0 6
414 ,3 5 9
7 3 0 ,1 3 2
5 2,982

9 1 ,8 5 6
126,256
3 0 ,0 7 2
68,449

116,901
148,781
35,771
110,943

3 3 7 ,8 4 4
4 0 3 ,9 4 0
74 3 ,9 4 4
4 7 ,0 2 8
125,7 1 8
170,273
27 ,8 7 5
123,818

283,416
567,577
929,6 1 3
7 4,858
150,841
191,401
32 ,9 6 8
130,879

O perating e x p e n s e s - to ta l...................................................................................................................................................
Salaries ..............................................................................................................................................................................
Pensions and o th e r e m ployee b e n e fits ....................................................................................................................
In te re st on b o rro w e d m o n e y ......................................................................................................................................
O ccupancy expense o f b ank premises (in c lu d in g taxes, d e p re cia tio n , m aintenance, rentals), n e t. . . .
F u rn itu re and e q u ip m e n t (in c lu d in g re c u rrin g d e p r e c ia tio n ) .........................................................................
A c tu a l net loan losses (charge-offs less re c o v e rie s ).............................................................................................
O ther o p e ra tin g expenses.............................................................................................................................................

581,693
24 3 ,4 4 6
55 ,9 4 4
7,862
7 1,113
2 8 ,365
3,328
171,635

671,818
270,353
6 3 ,8 8 2
6,713
8 2 ,820
3 2 ,2 3 7
4,500
2 1 1,313

811,689
3 0 7 ,0 3 0
7 2,567
2 8,907
9 6 ,1 2 8
3 7 ,1 0 4
8,9 9 4
260,9 5 9

938,705
3 4 4 ,3 0 4
8 3 ,338
6 6 ,1 1 0
114,206
4 3 ,8 1 5
10,034
27 6 ,8 9 8

1,083,192
388,061
9 8,268
55,168
135,754
52,543
21,836
33 1 ,5 6 2

N et o perating in co m e befo re in te re st and d ivid e n d s on d e p o s its .........................................................................

3,947,321

4,623,631

5,253,206

5,544,949

6,096,102

In te re s t and d ividends on d e p o s its -to ta l ....................................................................................................................
Savings deposits ............................................................................................................................................................
O ther tim e deposits .....................................................................................................................................................

3,418,845
3 ,0 5 8 ,6 4 5
3 6 0 ,2 0 0

3,943,233
3 ,3 9 2 ,7 9 8
55 0 ,4 3 5

4,480,901
3 ,5 6 7 ,5 9 5
9 1 3 ,3 0 6

4,916,724
3 ,6 0 7 ,1 7 0
1,309,554

5,495,842
3 ,7 7 8 ,6 9 5
1,717,147

N e t ope ra tin g incom e a fte r in te re s t and d ivid e n d s on d e p o s its ............................................................................

528,476

680,398

772,305

628,225

600,260

N et realized gains (o r losses) o n - t o t a l .........................................................................................................................
S ecurities .........................................................................................................................................................................
Real estate m ortgage lo a n s ...........................................................................................................................................
Real e s ta te .........................................................................................................................................................................
O ther tra n s a c tio n s ..........................................................................................................................................................

-5 8 ,2 8 6
- 4 4 ,2 9 0
- 1 2 ,1 3 3
-1 ,6 9 0
-1 7 3

-1 4 ,8 9 6
3,481
- 2 5 ,9 4 4
-5 0 9
8 ,076

-9 2 ,3 5 7
- 6 5 ,9 7 3
- 2 0 ,1 8 7
-6 7 3
- 5 ,5 2 4

-1 4 8 ,8 4 4
- 1 1 1 ,5 0 1
- 3 8 ,5 5 6
588
625

-6 3 ,2 8 3
- 2 5 ,8 9 9
- 2 2 ,9 0 4
- 7 ,1 6 9
-7 ,3 1 1

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

0

34

0

0

37

N e t incom e before ta x e s .....................................................................................................................................................

Less m in o rity in te re st in co n so lid a te d subsidiaries

470,190

665,468

679,948

479,381

536,940

Franchise and incom e ta x e s - to ta l .................................................................................................................................
Federal incom e t a x ........................................................................................................................................................
State and local franchise and incom e t a x e s ..........................................................................................................

126,601
6 3,833
6 2,768

186,303
108,679
77 ,6 2 4

201,792
114,500
8 7 ,2 9 2

161,870
81,089
80,781

171,549
66,543
105,006

N et in c o m e ..............................................................................................................................................................................

343,589

479,165

478,156

317,511

365,391




BANKS

4,529,014
3,2 7 5 ,8 5 9

3,344,057
68,198

INCOME OF INSURED

O peratin g i n c o m e - t o t a l .....................................................................................................................................................
In te re s t and fees on real estate m ortgage loans, n e t ...........................................................................................
Interest and fees on real estate mortgage loans, gross .................................................................................
Less: Mortgage servicing fees ..............................................................................................................................
In te re s t and fees on o th e r loans ..............................................................................................................................
In te re s t on U.S. G ove rnm e nt and agency securities ........................................................................................
In te re st on c o rp o ra te b o n d s ........................................................................................................................................
In te re st on S tate, c o u n ty , and m u n ic ip a l o b lig a tio n s ......................................................................................
In te re st on o th e r bonds, notes, and debentures ................................................................................................
D ividends on c o rp o ra te sto ck ..............................................................................................................................
Incom e fro m service o p e ra tio n s .................................................................................................................................
O ther o perating in c o m e ................................................................................................................................................

1971

192

Table 119. INCOME OF INSURED M U T U A L SAVINGS BANKS IN THE UN ITED STATES (STATES AN D OTHER A R EAS), 1 9 7 1 -1 9 7 5 -C O N T IN U E D
(Amounts in thousands of dollars)

Incom e item

1971

1972

1973

1974

1975

4 8 6 ,2 3 4
16,513

534,229
19,630

561 ,6 9 5
2 7,805

3 6 9 ,1 6 6
3 2 ,4 0 6

4 0 7 ,3 1 4
109,383

A s se ts-to ta l .................................................................................................................................
Cash and due fro m banks ............................................................................................................................................
U.S. G ov e rn m e n t and agency se cu ritie s ................................................................................................................
O th er secu ritie s .............................................................................................................................................................
Real estate m ortgage loans .........................................................................................................................................
O the r loans and dis c ou n ts .........................................................................................................................................
O the r real estate .............................................................................................................................................................
A ll o th e r assets ................................................................................................................................................................

73.661.663
1,156,181
4,4 3 7 ,6 6 6
11,932,355
5 2,364,759
2,3 0 9 ,4 9 8
75,520
1,385,684

8 2 .9 9 5 .6 0 6
1,329,972
5,7 4 0 ,0 9 7
1 5,0 3 3 ,3 8 8
5 6 ,5 5 3 ,6 0 2
2 ,5 6 6 ,4 6 0
116,406
1,655,681

90.850.840
1 ,67 6 ,2 1 6
6 ,2 9 9 ,0 8 2
1 6 ,2 3 8 ,9 8 3
6 1 ,6 0 0 ,1 7 8
2 ,9 6 7 ,7 4 0
170,868
1,897 ,7 7 3

94.426.708
1 ,8 2 5 ,0 6 6
5,950,081
1 6 ,4 1 0 ,8 9 6
6 4 ,6 9 5 ,6 8 9
3 ,2 5 0 ,9 6 0
2 0 7 ,1 2 5
2,086,891

101.714.468
2 ,0 6 7 ,5 4 0
7 ,8 2 3 ,8 3 7
1 9,03 5,57 5
6 6 ,6 9 8 ,1 1 6
3 ,3 88 ,5 51
3 2 0 ,4 6 8
2 ,38 0 ,38 1

Liabilities and surplus a cc o u n ts -to ta l .............................................................................................
T o ta l d e p o s its ..................................................................................................................................................................
Savings and time deposits.......................................................................................................................................
Demand deposits ......................................................................................................................................................
O th er l ia b i li t ie s ................................................................................................................................................................
T o ta l surp lu s a c co un ts .................................................................................................................................................

73.661.663
6 7 ,443,302

82.995.606
7 6 ,2 2 6 ,1 7 0

66,784,186
659,116

75,472,194
753,976

90.850.840
8 3 ,2 1 2 ,4 4 2

94.426.708
8 5 ,9 9 4 ,3 8 4

101.714.468
9 2 ,8 5 0 ,3 6 4

82,350,237
862,205

85,097,902
896,482

98 2 ,6 5 5
5 ,2 3 5 ,7 0 6

1,074,401
5,6 9 5 ,0 3 5

91,885,361
965,003

1,381,121
6 ,2 5 7 ,2 7 7

1 ,7 6 3 ,8 8 5
6 ,6 6 8 ,4 3 9

1,803,741
7 ,06 0 ,3 6 3

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

3 0 ,134

N um be r o f banks (end o f p e r i o d ) ....................................................................................................................................

327

32,866

3 5 ,6 6 8

3 7 ,4 9 4

4 0,2 61

326

322

320

329

Mem oranda

Average assets and liabilities1

CORPORATION




INSURANCE

1 Averages o f a m o u n ts re p o rte d at beginn ing , m id d le , and end o f year.

DEPOSIT

N um b er o f e m ployees (end o f p e rio d )

FEDERAL

Change in s u rplu s accounts, net .......................................................................................................................................
D isco un t on securities, to ta l
............................................................................................................................................

Table 120. RATIOS OF INCOME OF INSURED M U T U A L SAVINGS BANKS IN THE U N ITE D STATES (STATES A N D OTHER AR EA S ), 1 9 7 1 -1 9 7 5
Incom e item

1971

1972

1973

1974

1975

$ 1 0 0 .0 0
72.33
3.61
5.93
12.06
.28
1.67
2.33
.61
1.18

$ 1 0 0 .0 0
69.70
3.36
6.65
13.72
.58
1.74
2.39
.57
1.29

$ 1 0 0 .0 0
68.78
4.68
6.83
12.04
.87
1.93
2.45
.59
1.83

$ 1 0 0 .0 0
6 9 .4 5
5.21
6.23
11.47
.73
1.94
2.63
.43
1.91

$ 1 0 0 .0 0
67.11
3.95
7.91
12.95
1.04
2.10
2.67
.46
1.82

O perating e x p e n s e -to ta l ...........................................................................................
Salaries .................................................................................................................
Pensions and o th e r em ployee b e n e fits ...............................................................
In te re st on b o rro w e d m o n e y .........................................................................
O ccupancy expense o f bank prem ises (in c lu d in g taxes, d e p re cia tio n , m aintenance, r e n t a l s ) - n e t .................
F u rn itu re and e q u ip m e n t (in c lu d in g re c u rrin g d e p r e c ia tio n ) ......................................................................................
A c tu a l n e t loan losses (charge-offs less re c o v e rie s )..............................................................
O th e r o pe ra tin g expe n se s.....................................................................................

12.84
5.37
1.24
.17
1.57
.63
.07
3.79

12.69
5.11
1.21
.13
1.56
.61
.08
3.99

13.38
5.06
1.20
.48
1.58
.61
.15
4.30

14.48
5.31
1.29
1.02
1.76
.68
.15
4.27

15.09
5.41
1.37
.77
1.89
.73
.30
4.62

N et o p e ra tin g in c o m e b e fo re in te re s t and d ivid e n d s on d e p o s its ...............................................

8 7 .1 6

87.31

86.62

85.52

84.91

75.49
67.54
7.95

74.46
64.07
10.39

73.88
58.82
15.06

75 .8 3
55.63
20.20

76.55
52.63
23.92

N et o p e ra tin g in co m e a fte r in te re st and divid e n d s on d e p o s its ........................................................................................

11.67

12.85

12 .7 4

9.69

8.36

N et realized gains (o r losses) o n - t o t a l ......................................................................................................................................
S e c u ritie s ....................................................................................................................
Real estate m ortgage lo a n s ..............................................................................................................
Real e s ta te ......................................................................................................................................................................................
O ther tr a n s a c tio n s .............................................................................................................................

- 1 .2 9
-.9 8
-.2 7
-.0 4
(1)

-.2 8
.07
- .4 9
- .0 1
.15

-1 .5 3
-1 .0 9
-.3 4
- .0 1
- .0 9

- 2 .3 0
-1 .7 2
-.6 0
- .0 1
.01

-.8 8
-.3 6
-.3 2
-.1 0
-.1 0

A m o u n ts per $ 1 0 0 o f ope ra tin g incom e
O perating i n c o m e - t o t a l ................................................................................................................
In te re s t and fees on real estate m ortgage lo a n s - n e t .........................................................
In te re s t and fees on o th e r lo a n s .........................................................................
In te re s t on U.S. G ove rn m e n t and agency securities ..............................................................
In te re s t on c o rp o ra te b o n d s ......................................................................................................
In te re s t on S tate, c o u n ty , and m u n ic ip a l o b lig a tio n s .................................................
In te re s t on o th e r bonds, notes, and d eb e ntures ................................................................................................
D ividends on c o rp o ra te s to c k ...........................................................................
Incom e fro m service o p e ra tio n s .................................................................
O ther ope ra tin g in c o m e ........................................................................................

(1)

.0 0

.00

(1)

12.57

11.21

7.39

7.48

Franchise and incom e ta x e s - to ta l ..............................................................................................................................................
Federal incom e t a x ...............................................................................................
State and local franchise and incom e t a x e s ................................. .........................................................

2.79
1.41
1.38

3.52
2.05
1.47

3.33
1.89
1.44

2.49
1.25
1.24

2.39
.93
1.46

N et in c o m e ...........................................................................................................................................................................................

7.59

9.05

7 .88

4.9 0

5.09

193




BANKS

.00
10.38

Less m in o r ity in te re s t in conso lid a te d s u b s id ia rie s ...............................................................................................................
N et incom e be fo re t a x e s ..................................................................................................................................

INCOME OF INSURED

In te re s t and d iv id e n d s on d e p o s it s - t o t a l. .......................................................................................
Savings deposits .........................................................................................................................................................................
O th e r tim e deposits ........................................................................................................................

194

Table 120. RATIOS OF INCOME OF INSURED M U T U A L SAVINGS BANKS IN THE U N ITE D STATES (STATES AND OTHER AREAS),
1971— 1975— CONTINUED
Incom e item

1971

1972

1973

1974

1975

A m o u n ts per $ 1 0 0 o f to ta l assets2
6.68
.90
5.78
4.93
.85
-.1 0
.75
.22
.53

6.87
.99
5.88
5.21
.67
-.1 6
.51
.17
.34

7.06
1.06
5.99
5.40
.59
-.0 6
.53
.17
.36

In te re s t on U.S. G ov e rn m e n t and agency securities per $ 1 0 0 o f U.S. G o vernm ent and agency s e c u ritie s ..........
Inte re s t and d ivide nd s on o th e r se curities per $ 1 0 0 o f o th e r securities .......................................................................
Inte re st and fees on real estate m ortgage loans per $ 1 0 0 o f real estate loans .............................................................
Interest and fees on o th e r loans per $ 1 0 0 o f o th e r loans ...................................................................................................
Interest and dividends on deposits per $10 0 o f savings and tim e d e p o s its .....................................................................
Net incom e per $ 1 0 0 o f to ta l surplus accounts .....................................................................................................................

6.05
6.20
6.26
7.09
5.12
6.56

6.14
6.49
6.53
6.94
5.22
8.41

6.58
6.46
6.77
9.55
5.44
7.64

6.79
6.62
6 .96
10.39
5.78
4 .76

7.25
7.07
7.22
8.36
5.98
5.18

N um ber o f banks (end o f p e r i o d ) ................................................................................................................................................

327

326

322

320

329

Special ra tio s 2

1 Less than 0.005.
2 See note to table 119.




INSURANCE CORPORATION

6.38
.81
5.57
4.75
.82
-.0 2
.80
.22
.58

FEDERAL DEPOSIT

6.15
.79
5.36
4 .6 4
.72
-.0 8
.64
.17
.47

O perating i n c o m e - t o t a l ..................................................................................................................................................................
O perating e x p e n s e - to ta l..................................................................................................................................................................
N et o p e ra tin g incom e b efore in te re s t and d ividends on d e p o s its .......................................................................................
Inte re s t and d ivid en ds on d e p o s its - to ta l .................................................................................................................................
Net o p e ra tin q incom e a fte r in te re s t and d iv idends on d e p o s its .........................................................................................
Net realized gains (or losses)— t o t a l ..............................................................................................................................................
Net inco m e be fo re ta x e s ..................................................................................................................................................................
Franchise and incom e t a x e s - to ta l ..............................................................................................................................................
N et in c o m e ...........................................................................................................................................................................................

BANKS
AND

Table 123.

Depositors, deposits, and disbursements in failed banks requiring disbursements by the
Federal Deposit Insurance Corporation, 1934-1975
Banks grouped b y class o f bank, year o f deposit p a y o ff o r deposit assumption, am o u n t o f
deposits, and State

D ISBURSEM ENTS
195




Recoveries and losses by the Federal Deposit Insurance C orporation on principal disburse­
ments fo r protection of depositors, 1934-1975

INSURANCE

N um ber and deposits of banks closed because o f financial d ifficu ltie s, 1934-1975
Insured banks requiring disbursements by the Federal Deposit Insurance C orporation during
1975

DEPOSIT

Table 121.
Table 122.

Table 124.

CLOSED

BANKS CLOSED BECAUSE OF F IN A N C IA L D IF F IC U L T IE S ;
DEPOSIT INSURANCE DISBURSEMENTS

196

Insured banks: b o oks o f b a n k at date o f closing; and b o o ks o f F D IC ,
D ecem ber 31, 1975.

C O R P O R A T IO N




Sources of data

INSURANCE

S tatistics in this re p o rt on fa ilu re s o f n o ninsure d banks are c o m p ile d
fro m in fo rm a tio n o b ta in e d fro m S tate ba n kin g d e p a rtm e n ts, fie ld sup ervi­
sory o ffic ia ls , and o th e r sources. T he C o rp o ra tio n received no re p o rts o f
failure s o f no n in su re d banks in 1975.
F o r de taile d data regarding n o ninsure d banks th a t suspended in the
years 1 9 3 4 -1 9 6 2 , see th e A n n u a l R e p o rt fo r 1963, pp. 27-41. For
1 9 6 3 -1 9 7 5 , see ta b le 121 o f th e re p o rt, and previous re ports f o r respective
years.

DEPOSIT

Noninsured bank failures

D isbursem ents b y th e Federal D epo sit Insurance C o rp o ra tio n to p ro te c t
d e positors are made w hen th e insured deposits o f banks in fin a n c ia l d iffic u l­
ties are pa id o ff, o r w hen th e deposits o f a fa ilin g ba nk are assumed b y
a n o th e r insured b a n k w ith th e fin a n c ia l aid o f th e C o rp o ra tio n . In de posit
p a y o ff cases, th e d is b u rs e m e n t is th e a m o u n t paid b y th e C o rp o ra tio n on
insured deposits. In d e p o s it as s u m p tio n cases, th e p rin c ip a l disbu rsem e nt is
the a m o u n t loan ed to fa ilin g banks, or the p rice paid fo r assets purchased
fro m th e m ; a d d itio n a l disbu rsem e nts are made in those cases as advances fo r
p ro te c tio n o f assets in process o f liq u id a tio n and fo r liq u id a tio n expenses.
U nder its section 13(c) a u th o r ity , th e C o rp o ra tio n has made disburse­
m ents to fo u r o p e ra tin g banks. The am o u n ts o f these disbursem ents are
in clu d e d in ta b le 2 (page 7 ) , b u t are n o t in c lu d e d in tables 123 and 1 24.

FEDERAL

Deposit insurance disbursements

Table 121. N U M B E R A N D DEPOSITS OF BANKS CLO SED BECAUSE OF F IN A N C IA L D IF F IC U L T IE S , 1 9 3 4 -1 9 7 5
Deposits (in thousands of dollars)

Non­
insured 1

With
disbursements
by F D IC 3

Non­
insured 1

Total
61
32
72

2

9
26
69
77
74
60
43
15

9
25
69
75
74
60
43
15

3

20

20

6
3
7
7
12
5

6
3
9
5
5
4
5
4
5
3
3
9
3

5
3
5
4

5
3

2

2

3
4

3

2

2
2

5

5

2
2

2
1

4
3

4
3

2

1

1

9
3

5

5

2

4
13

1
2

2

7
5
7
4
3
9
7

7
5
7
4
3
9
7

6
1
6

6
1
6

4
13

4
13

1,968
13,405
27,508
33,677
59,684
157,772
142,430
29,717
19,185
12,525
1,915
5,695
347
7,040
10,674
6,665
5,513
3,408
3,170
44,711
998
11,953
11,330
11,247
8,240
2,593
6,930
8,936
3,011
23,444
23,438
43,861
103,523
10,878
22,524
40,134
54,821
132,152
20,480
971,296
1,575,832
339,630

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

4234
79,304

85
' 328

1,968
13,320
27,508
33,349
59,684
157,772
142,430
29,717
19,185
12,525
1,915
5,695
347
7,040
10,674
5,475
5,513
3,408
3,170
18,262
998
11,953
11,330
1,163
8,240
2,593
6,930
8,936
'23,444
23,438
43,861
103,523
10,878
22,524
40,134
54,821
132,152
20,480
971,296
1,575,832
339,630




197

1 For information regarding each of these banks, see table 22 in the 1963 Annual Report (1963 and prior years), and explanatory notes to tables regarding banks closed because of financial difficulties in subsequent annual reports. 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. 4 8 -8 3 and pp. 98 -1 2 7 , and tables regarding deposit insurance disbursements in subsequent annual reports. Deposits are adjusted as of December 31, 1975.
4 Revised.

DISBURSEMENTS

2
1
1

4,014,261

35,364
583
592
528
1,038
2,439
358
79
355

INSURANCE

5

2

141,700

DEPOSIT

5

2
1
2

37,332
13,988
28,100
34,205
60,722
160,211
142,788
29,796
19,540
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
11,690
12,502
10,413
2,593
7,965
10,611
4,231
23,444
23,867
45,256
106,171
10,878
22,524
40,134
55,244
132,152
99,784
971,296
1,575,832
339,630

AND

72
48
17
23
5

52

With
disbursements
by F D IC 3

CLOSED

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
1970
1971
1972
1973
1974
1975

Without
disbursements
by F D IC 2

BANKS

Without
disbursements
by F D IC 2

Table 122. INSURED BANKS R EQ U IR IN G DISBURSEMENTS BY THE FE D ER AL DEPOSIT INSURANCE CORPORATION DURING 1975

Case
num ber

D eposit
p a y o ff
3 04

Name and lo c a tio n

S w ope P arkw ay N a tio n a l Bank
Kansas C ity , M issouri

F irst paym e n t to
depositors or
disbursem ent by
FDIC

FD IC
d isbursem ent2

6,497

January 3 ,1 9 7 5

January 4, 1975

$

March 2 4 ,1 9 7 5

March 29, 1975

O ctober 2 4 ,1 9 7 5

O ctober 25, 1975

N um ber of
depositors or
accounts1

N

Receiver o r liq u id a tin g agent
o r assuming b ank

4 ,9 2 5 ,9 7 8

Federal D eposit Insurance C o rp o ra tio n

1 2 ,417,222

Federal D eposit Insurance C o rp o ra tio n

8 ,7 1 2 ,1 6 3

Federal D eposit Insurance C o rp o ra tio n

4 ,353

3 06

T he Peoples Bank o f the
V irg in Islands
St. Thom as, C h a rlo tte
A m a lie , V irg in Islands

NM

11,073

N o rth e rn O hio Bank
Cleveland, O hio

NM

7,500

February 19, 1975

211

Chicopee Bank & T ru s t
C om pany
C hicopee, M assachusetts

NM

6,919

May 9 ,1 9 7 5

4 ,9 9 5 ,6 1 5

H o ly o k e N ational Bank
H o ly o k e , Massachusetts

2 12

A lg o m a Bank
A lgo m a, W isconsin

NM

3,244

May 30, 1975

3 ,6 9 8 ,6 0 2

F irst State Bank o f A lgom a
A lgom a, W isconsin

213

B ank o f Picayune
P icayune, M ississippi

NM

12,700

June 18, 1975

11,70 6 ,4 6 9

214

B ank o f C hidester
C hidester, Arkansas

NM

904

2 15

State Bank o f Clearing
Chicago, Illin o is

M

216

A s tro Bank
H o u s to n , Texas

217

A m e ric a n C ity Bank & T ru s t
C om pa n y, N .A .
M ilw a u k e e , W isconsin

218

Th e Peoples Bank
W illc o x , A riz o n a

NM

2,692

Decem ber 1 9 ,1 9 7 5

4 ,1 7 5 ,5 2 7

U nion Bank
T ucson, A rizo n a

219

The F irs t State Bank o f
Jennings
Jennings, Kansas

NM

1,350

Decem ber 2 7 ,1 9 7 5

1,57 4 ,5 9 9

The Jennings N ation al Bank
Jennings, Kansas

D eposit
assum ption
2 10




NM

N

19,353

Ju ly 1, 1975

July 1 2 ,1 9 7 5

8 8 ,8 9 5 ,1 6 4

1,6 8 8 ,4 5 8

4 6 ,8 8 6 ,7 3 2

1,675

O ctober 1 6 ,1 9 7 5

3,8 6 6 ,3 8 7

32,105

O ctober 2 1 ,1 9 7 5

102 ,5 7 7 ,6 0 3

N ational C ity Bank
Cleveland, O hio

H ancock Bank
G u lfp o rt, M ississippi
The M erchants and P lanters Bank
Cam den, Arkansas
Clearing Bank
Chicago, Illin o is
C o m m onw ealth Bank o f H ouston
H o u sto n , Texas
M arine N ational Exchange Bank
o f M ilw aukee
M ilw aukee, W isconsin

CORPORATION

NM

INSURANCE

F ra n k lin Bank
H o u s to n , Texas

DEPOSIT

3 05

FEDERAL

Date o f closing or
deposit assum ption

Class o f
bank

O ther
securities

O ther
assets

T otal

7 ,5 7 5 ,9 6 0

$ 7 ,4 2 1 ,9 7 3

8,348 ,3 5 8

596,906

2 ,8 4 5 ,3 2 0

1,000,310

2 0 ,6 9 0 ,1 4 3

18,2 4 7 ,1 1 5

5 0 8 ,8 9 2

1 ,7 4 5 ,1 1 4

39 5 ,0 0 0

8,786,362

320,678

59 7,975

2,524,911

14,878,931

1 4 ,256,352

171,110

3 06

$

357,176

$

-

$

4 1 ,8 9 2

$

$

18,278
-

Capital
stock

$

4 5 8 ,3 4 0

O ther
capital
accounts

$ (32 2,63 1)

1,500,00 0

94 3,02 8

1,067,17 5

(44 4,59 5)

(3,7 8 9,0 5 3)

6,688,551

76,344,794

1,337,402

7,63 0 ,9 7 8

103 ,7 8 2 ,1 9 2

9 5 ,6 1 5 ,6 9 2

1 0 ,083,770

1,871,783

1 ,140,043

2,5 5 4 ,8 0 4

6,727,167

223,154

-

39 ,3 2 0

1 1 ,406,385

9 ,8 6 1 ,5 4 3

3 3 9 ,0 7 2

4 0 7 ,4 0 0

79 8,37 0

212

3 8 5 ,3 2 5

3 5 0 ,6 6 8

35,179

4 ,1 6 8 ,4 8 2

134,503

-

101,942

5 ,1 7 6 ,0 9 8

4 ,7 7 2 ,3 0 5

99 ,4 2 2

100,000

2 04 ,372

213

1 ,6 4 6 ,8 2 5

5 4 9 ,3 3 5

2,83 3 ,3 0 7

10,040,557

239,607

2 ,7 2 7 ,8 2 4

18,048,543

15 ,352,035

8 5 5,869

3 1 6 ,8 0 0

1,52 3,83 8

214

18 8,98 3

20 ,5 8 0

250,639

1,898,685

18,247

-

7 1,763

2 ,4 4 8 ,8 9 6

2,297,631

75,0 00

76,265

215

4 ,3 0 1 ,0 2 3

5 ,2 4 9 ,7 0 2

2,27 6 ,2 1 3

57,57 6 ,4 7 2

1,234,337

-

3 ,7 1 6 ,7 2 4

7 4,354,471

6 0 ,6 0 3 ,0 7 3

11,740,849

2,0 0 0 ,0 0 0

216

3 6 0 ,9 4 0

2 3 9,917

526,472

4,24 0 ,7 5 3

47,168

-

5 5,556

5,4 7 0 ,8 0 6

5 ,1 6 7 ,5 9 4

108,063

4 0 0 ,0 0 0

(20 4,85 1)

217

1 4 ,0 2 4 ,0 6 8

(2 ,2 44 ,3 75 )

1 6,4 7 9 ,2 8 0

8 ,704,127

9 3 ,101,079

903,325

218

(2 9 3 ,3 7 6 )

2 0 0 ,0 0 0

3 0 0 ,0 0 0

3 ,509,797

141,889

219

2 09 ,4 2 7

4 3 0 ,3 8 3

381,4 6 4

1,834,937

15,130

11,088

13,689,021

-

10,549

661 ,6 7 8

147,56 2 ,5 7 7

9 8 ,3 4 3 ,8 4 6

4 7 ,3 6 3 ,1 0 6

4 ,1 0 0 ,0 0 0

-

1,798,558

5 ,6 5 6 ,8 6 8

5 ,0 4 3 ,7 5 5

56,661

200 ,0 0 0

356,451

-

2 6,642

2 ,8 9 7 ,9 8 2

2 ,6 1 2 ,5 9 0

54,114

50,0 00

181,277

DISBURSEMENTS

7 ,5 8 4 ,7 5 6

7 2 1 ,8 9 8

INSURANCE

4 ,0 2 4 ,6 0 1

211

DEPOSIT

$ 2,951,351

10,000

2 ,8 1 5 ,1 6 6

O ther
lia b ilitie s

Deposits

5 ,0 7 4 ,0 8 4

$ 2 ,2 6 0 ,2 3 6

$

O ther
real
estate

991,371

9 7 3 ,9 3 5

305

Deposit
assum ption
210

$

U.S. G overn­
m ent
o b lig a tio n s

L ia b ilitie s and capital acco u n ts 1
Banking
house,
fu rn itu re and
fix tu re s

AND

D eposit
p a y o ff
30 4

Cash and
due fro m
banks

Loans,
discounts,
and
overdrafts

BANKS CLOSED

Assets1
Case
num ber

1 Figures as de te rm in e d by F D IC agents a fte r a d ju stm e n t o f books of the bank im m e d ia te ly fo llo w in g its closing.
2 In cludes disbursem ents made to D ecem ber 31, 1975, plus a d d itio n a l disbursem ents required in these cases.

199




N u m b e r o f banks

C la ssificatio n

T o ta l

A ssum p­
tio n
cases

T o ta l

P ayoff
cases

Assum p­
tio n
cases

T o ta l

P a yo ff
cases

Assum p­
tio n
cases

Advances and
expenses2

P rincipal disbursem ents

T o ta l

P a y o ff
cases3

A ssum p­
tio n
cases4

P a y o ff
cases5

A ssum p­
tio n
cases6

219

2,964,223

614,772

2,349,451

3,973,114

449,336

3,523,778

1,513,219

315,043

1,198,176

6,691

74,198

97
29
393

35
10
255

62
19
138

1,368,269
4 0 2 ,1 2 9
1,193,825

105,042
88,894
4 20,836

1,263,227
313 ,2 3 5
772,989

2,7 2 1 ,1 5 2
273,153
9 7 8 ,8 0 9

111,173
34 ,3 8 8
3 0 3,775

2,6 0 9 ,9 7 9
2 3 8,765
6 7 5 ,0 3 4

709,231
167,177
636,811

62,971
2 6,506
2 2 5 ,5 6 6

6 4 6 ,2 6 0
140,671
4 1 1 ,2 4 5

2,446
301
3 ,9 44

4 2 ,3 6 2

9

9
24
42
50
50
32
19
8
6
4
1

15,767
44 ,6 5 5
8 9,018
1 30,387
203,961
3 9 2 ,7 1 8
256,361
73,005
60 ,6 8 8
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

15,767
32,331
43,225
74,148
4 4,288
90,169
20,667
38,594
5,717
16,917
899

1,968
13,320
2 7 ,508
33,349
59,684
157,772
142,430
29,717
19,185
12,525
1,915
5 ,695
347
7 ,040
10,674
5 ,475
5,513
3 ,408
3 ,170
18,262
998
11,953
11,330
1 163
8,240
2,593
6 ,930

1,968
9,091
11,241
14,960
10,296
32 ,7 3 8
5,657
14,730
1,816
6,637
456

941
8,891
14,460
19,481
3 0,479
6 7 ,7 7 0
7 4 ,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
3,4 5 8
1,031
3,026
1,83 5
4,7 6 5

941
6 ,026
7,735
12,365
9,0 9 2
26,196
4,8 9 5
12,278
1,612
5 ,500
4 04

11,210
2 0,6 26

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

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

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

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

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




....
27
25
24
28
24
7
14
1
1
1
1
5
3
4
4
2
3
2
2
1
1

' ■v
1
1
3
3
1

"

V

8,080
5,465
2 338
4,3 8 0
3,073
11,171

12,324
4 5,793
56,239
159,673
302,549
235,694
34,411
54,971
10,454
4 ,5 8 8
12,483
1,383
10,637
18,540
5,671
6,366
5,276
6,752
24,469
1,811
9,710
9 ,732
5,207

6,503
4 ,702
1,163
4,156
2,593
6,930

4,229
16,267
18,389
4 9 ,3 8 8
125,034
136,773
14,987
17,369
5,888
1,459
5,695
347
7,040
10,674
5 ,475
5,513
3,4 0 8
3,170
18,262
998
5,450
6,6 2 8
4,084

4 ,4 3 8
2 ,795
1,031
2,796
1,835
4 ,7 6 5

2,865
6,7 2 5
7,116
2 1 ,387
4 1 ,5 7 4
6 9,239
11,602
9,213
1,672
1,099
1,768
265
1,724
2,990
2,552
3,986
1,885
1,369
5,017
913
2,346
663
230

43
108
67
103
93
162
89
50
38
53
9

106
87
20
38
51
82

272
934
905
4 ,9 02
17,603
17,237
1,479
1,076
72
37
96
11
381
200
166
524
127
195
42 8
145
665
51
31

CORPORATION

300

INSURANCE

519

Class of bank
N a tio n a l .............................................
State m em ber F .R .S ..........................
N o n m e m b e r F .R .S ..............................

DEPOSIT

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

All banks

FEDERAL

P a y o ff
cases

D isbursem ents by F D IC 1
(in thousands o f dollars)

D eposits1
(in thousands o f dollars)

N um ber of depo sito rs1

200

Table 123. DEPOSITORS, DEPOSITS, A N D DISBURSEMENTS IN FA ILE D BANKS REQUIRING DISBURSEMENTS BY THE
F E D E R A L DEPOSIT INSURANCE CORPORATION, 1 9 3 4 -1 9 7 5
BANKS GROUPED BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF OR DEPOSIT ASSUMPTION, AMOUNT OF DEPOSITS, AND STATE

4
4
5
1

6
4
13

3

83
86
37
35
21
21
7

3

8,301

8,301
36,433
19 934
14*363
1,012
4,729

10

36,433
19,934
15*817
95,424
4,729
12 850
27,374
31,433
71,950
23,655
349,699
704,283
11 O',377

24
23
25
36
36
32
24
7
4
4
2
1
1

3 8,347
83,370
92,179
160,000
209,818
285,804
2 84,090
285,067
284,809
209,505
66,232
3 35,0 0 0
630,000

9,170
2,692
6^350
356,059
11,492

4,541
17,890
2,312

5 379
14',082
9,410
2,451
1 0 l',651

5,379
U 25
8,797
2 451
44',3 79

5
5
5
6

30,006
23,824
8,065
39 ,925
8,999

12,549
5,736
3 ,824
18,964
8,999

1

9,710
22,567
3 9,620
172,603
2,650

"l
6
3
5
3
1
”

1
1

3'
4

4
1

2

2
1

8
5
6

"6 '
3
3

2
2
3

C o n n e c tic u t........................................
F lo r id a ..................................................
G e o rg ia ..................................................
Idaho .....................................................
I l l i n o i s ..................................................

2
5
10
2
23

2
2
8
2
10

Indiana ..................................................
Iow a .....................................................
Kansas ..................................................
K e n tu c k y .............................................
L o u is ia n a .............................................

20
10
11
25
4

15
5
6
19
4

M a in e .....................................................
M a r y la n d .............................................
M assachusetts......................................
M ic h ig a n ................................................
M in n e s o ta .............................................

1
5
4
14
5




”

2
1
5
5

"

3’
2

' 13'

3
3
9

6,544
20,403
31 ,8 5 0
23,655
8,382
21,935

29,695
65,512
57,287
73,908
70,334
85,353
5 0,445
142,352
12,481
27,403

2,059

6,643
23,655
10,448
2,650

8,936

8,936
23,444
2 3,438
42,8 8 9
774
10,878

3 4 1,317
704,283
88*442

2 3 ,444
23 ,4 3 8
43,861
103,523
10,878
2 2,524
40,1 3 4
54,821
132,152
2 0,480
971 ,2 9 6
1,575,832
3 3 9 ,6 3 0

8,652
17,858
34 ,8 9 2
86,092
139,484
200,451
23 3 ,6 4 5
142,715
27 2 ,3 2 8
182,102
6 6,232
3 3 5 ,0 0 0
63 0 ,0 0 0

6,4 1 8
17,759
2 2,315
53,869
76,462
172,770
213,117
249,197
199,594
4 7 1 ,9 7 2
112,703
931 ,9 5 5
1,444,982

4 ,9 4 7
13,920
12,921
2 6 ,265
2 7 ,888
67 ,7 7 8
55,867
132,672
40,1 7 6
66 ,9 0 2

7,111
2,692
U 09
3 3 8,169
9,1 8 0

6,1 7 0
5,044
4,8 3 6
9 7 9,253
18,593

3,985
1,942
4 6 ,2 2 0
3,797

1,526
17,665
1,959
1,894
115,259

1,526
2 ,668
1,870
1,894
28,972

17,457
18,088
4,241
20,961

13,595
24,364
7,665
15,522
9,735

3,9 3 3
8,535
4 ,3 5 8
5,213
9,7 3 5

9 710
15*924
15,965
162,155

5,450
4,566
33,361
194,399
818

1,454
9 4,412
12,850
20*830
11,030
4 0 ,1 0 0

12,357
613
57,272

9,0 1 2
33,489
7 4 ,605
20 480
25,795
3 9,958

828
20 ,4 8 0
13,477
818

6,201

6,201
19,230
13,744
10,958
735
8,126

945,501
1,575,832
299,6 7 2

1 9,230
1 3,744
11,431
8,732
8,126
5,586
37 ,5 8 5
4 9 ,1 2 0
160,894
16,275
3 9 8 ,9 4 7
173,028
30 1 ,4 1 6

1,471
3,839
9 ,394
27 ,6 0 4
4 8 ,5 7 4
104,992
157,250
116,525
159,418
4 0 5 ,0 7 0
112,703
9 3 1 ,9 5 5
1,444,982

5,000
12,906
15,615
35,521
4 4 ,2 6 7
101,820
113,476
154,324
9 5 ,4 1 4
29 4 ,6 2 2
165,910
3 7 4 ,3 4 2
100,000

4 ,309
11,554
10,549
20 ,426
22 ,0 6 8
4 9 ,6 4 3
38 ,2 2 0
101,553
9,700
47,021

2,185
5,044
2,8 9 4
933 ,0 3 3
14,796

3,5 6 7
4,1 7 5
3,4 0 8
4 0 0 ,2 1 0
8,421

2,572
1,576
12,946
2,191

1,242
6,171
1,620
1,493
8 0,163

1,242
2,139
1,551
1,493
23 ,9 2 4

9,6 6 2
15,829
3,307
10,309

6,1 9 7
14,425
5,668
11,943
5,038

3 ,0 9 6
6 ,469
3,601
4 ,5 0 5
5,038

5,450
3,7 3 8
12,881
180,922

2,346
3,1 0 9
22,831
141,295
6 40

972
102,749
22 ,5 2 4
31 ,1 2 2
2 1 ,332
57,547

14,997
89
8 6 ,287

7,604
2 9 ,354
53,791
16,275
16,933
27,382

735
16,275
12,242
6 40

154

473
7,997
5,586
29,981
19,766
107,103
3 8 2 ,0 0 8
173,028
27 4 ,0 3 4

691
1,352
5,066
15,095
22,199
5 2,177
7 5,256
52,771
8 5,714
247,601
165,910
3 7 4 ,3 4 2
100,000

995
4,175
1,832
3 8 7 ,2 6 4
6,230
4 ,0 3 2
69
56,239
3,101
7,956
2,067
7,438
2 ,346
2,374
6 ,556
129,053

347
596
632
35
241
294
6 88
755
366
1,032
352

88
209
164
408
693
1,064
870
1,483
573
4 87

123
1,601
1,111
4,326
1,641
8,571
683
5,728
2,875

154
173
611
2,339
3,712
7,183
9,790
7,794
26,075
10,607
4,703

652
1,055

94
. 43
1,320
188
8
65
33
29
505
39
144
60
119
146
9
365
204
17

91
5
125
1,490
1,754
698
33
1,130

%

384
437
72
558

665
371
1,181
11,021

DISBURSEMENTS

State
A la b a m a ................................................
A riz o n a ................................................
Arkansas .............................................
C a lifo r n ia .............................................
C olorado .............................................

2
7
3
1
4

INSURANCE

107
109
62
71
57
53
31
15
5
5
2
1
1

5

2
7
5
7
4
3
9
7
6
1

DEPOSIT

Banks w ith de posits o f
Less th a n $ 1 0 0 ,0 0 0 .........................
$ 1 0 0 ,0 0 0 to $ 2 5 0 ,0 0 0 ....................
$ 2 5 0 ,0 0 0 to $ 5 0 0 ,0 0 0 ....................
$ 5 0 0 ,0 0 0 to $ 1 ,0 0 0 ,0 0 0 ..................
$ 1 ,0 0 0 ,0 0 0 to $ 2 ,0 0 0 ,0 0 0 .............
$ 2 ,0 0 0 ,0 0 0 to $ 5 ,0 0 0 ,0 0 0 .............
$ 5 ,0 0 0 ,0 0 0 to $ 1 0 ,0 0 0 ,0 0 0
$ 1 0 ,0 0 0 ,0 0 0 to $ 2 5 ,0 0 0 ,0 0 0 . . . .
$ 2 5 ,0 0 0 ,0 0 0 to $ 5 0 ,0 0 0 ,0 0 0 . . . .
$ 5 0 ,0 0 0 ,0 0 0 to $ 1 0 0 , 0 0 0 , 0 0 0 . . .
$ 1 0 0 ,0 0 0 ,0 0 0 to $ 5 0 0 ,0 0 0 ,0 0 0 . .
$ 5 0 0 ,0 0 0 ,0 0 0 to $ 1 ,0 0 0 ,0 0 0 ,0 0 0 .
$ 1 ,0 0 0 ,0 0 0 or m o r e .........................

5

AND

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

BANKS CLOSED

1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975

C la ssifica tion

T o ta l

P a y o ff
cases

A ssum p­
tio n
cases

To ta l

P a yo ff
cases

Disbursem ents by F D IC 1
(in thousands o f do llars)

D eposits1
(in thousands o f dollars)

N um ber o f dep o sito rs1

N u m b e r o f banks

Assum p­
tio n
cases

To ta l

P a y o ff
cases

Assum p­
tio n
cases

1
3
33
1

3
20

1

1

" i
4

4
10
1
1
5
1
' 13'
1

12,358
96,746
3 ,254
11,057
35 ,7 1 5

9,993
76,855
8,687
12,638

4 ,179
8,346
62,247
3 ,212

8,346
18,739

11,085

11,085

114
18,053
3,4 9 9
186
4 ,3 9 6

28
1,488

1,620
126,346

1,278
106,647
3 ,499
3 ,4 4 5
8,263

1,538

935
1,458
116,4 2 4
202

1,458
5,096

10,000

10,000

2,365
19,891
3,254
2,370
23,077

1,942
157,946
5,992
3 ,7 2 5
17,779

4,179

1,538
2,006
112,627
2 ,033

2,006
5,966

14,275

14,275

4 3 ,5 0 8
3,212

1,164
8 8 ,5 9 4

322
3 1 ,6 0 0
5,992
350
10,127

3 ,375
7,652

106,661
2,033

3,2 5 9
3,8 6 7

26

21
302

512

935
111,328
202

25
1,945
296
22
505

11
54

1,422
19

O ther Areas
V irg in Islands

..

91

1 A d ju ste d to Decem ber 3 1 , 1975. In a ssum ption cases, n u m b e r o f d e p o sito rs refers to num b e r o f deposit accounts.
2 Excludes $ 723 th ousand o f nonrecoverable insurance expenses in cases th a t were resolved w ith o u t pa ym e n t o f claim s or a disbursem ent to fa c ilita te assum ption o f deposits b y a n o th e r insured bank and o th e r expenses o f fie ld
liq u id a tio n em ployees n o t chargeable to liq u id a tio n a c tiv itie s ,
i n c lu d e s e stim ated a d d itio n a l disbursem ents in active cases.
4 Excludes excess c o lle c tio n s tu rn e d over to banks as a d d itio n a l purchase price at te rm in a tio n o f liq u id a tio n .
5These disbursem ents are n o t recoverable by the C o rp o ra tio n ; th e y consist alm ost w h o lly o f fie ld p a y o ff expenses.
i n c lu d e s advances to p ro te c t assets and liq u id a tio n expenses o f $ 6 9 ,0 7 3 th ousand, all o f w hich have been fu lly recovered by the C o rp o ra tio n , and $ 5 ,1 2 5 thousand o f nonrecoverable expenses.
7 No cases in 196 2 requ ire d disbursem ents. D isbursem ents to ta ls fo r each year relate to cases occu rrin g du rin g th a t year, in clu d in g disbursem ents made in subsequent years.
N o te : Due to ro u n d in g diffe re n ce s, c o m p o n e n ts m ay n o t add to to ta ls .




CORPORATION

W a sh in g to n ...........................................
West V irg in ia
. ...
W is c o n s in ..............................................
W yo m in g
. . . .
.............

3
9

8
32

563
81
10,067
3,851
9

INSURANCE

12
42
1

178
11
75

10,284
1,948
6 0 ,149
6 0 ,6 4 4
2,411

8

DEPOSIT

T ennessee..............................................
Texas .....................................................
Utah
V e r m o n t................................................
V irg in ia ................................................

2 ,348
9 62
50 ,0 1 6
6 0 ,5 0 8
23

7,867
1,302
7 0,255
113,417
126

117

FEDERAL

22

7 ,936
986
10,133
136
2,388

11,053
1,368
14,340
136
2,862

18,920
2,6 7 0
84,595
113,553
2,988

20,149
1,230
4 3 ,8 2 8
403
11,412

8
1
8
1

2 0 ,154
11,902
179
203
1,066

4 0 ,0 4 9
10,836
1,156
1,397
1,610

7,501
2,209
125,006
67,677
1,103

27,650
3,439
168,834
6 8,080
12,515

12
2
30
3
23

515
32
23
24
7

9 5 ,7 0 6
167,997
2,387
2,656
9 0 ,6 8 2

4 9 ,1 2 2
13,286
1,421
1,552
2 ,345

4
1
22
2
1

O k la h o m a ..............................................
O re g o n ...................................................
P e n n sylva n ia .........................................
South C a r o lin a ....................................
S outh D akota ......................................

55,657
157,161
1,231
1,259
8 9 ,0 7 2

296

210 ,6 2 4
1,590,421
3 ,266
3 ,830
102,838

113,692
28,440
3,677
6,760
7,585

13
3
2
18
2

A ssum p­
tio n
cases6

230
1,102
21

161,502
1,57 7 ,1 3 5
1,845
2,278
100,493

1,780

5 32,458
899,621
10,408
14,103
21,251

40
27
7
29
5

New H am pshire .

4 1 8 ,7 6 6
871,181
6,731
7,343
13,666

1
27
24
5
11
3

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

New J e r s e y ...........................................
New Y o rk ...........................................
N o rth C a r o lin a ....................................
N o rth D a k o ta ......................................
O hio .....................................................

P a y o ff
cases5

5
257
6
149

11,661
7 ,266
453

15,352
10,985
880

12,700
17,577
651

1
14
2

A ssum p­
tio n
cases4

257
14,184
186
8,116

334
18,166
215
11,644

1,651
37,977
849
7,773

3
38
3
8

P a y o ff
cases3

11,918
2 1,450
639
8,1 1 6
117

15,686
29,151
1,095
11,644
296

14,351
55,554
1,500
7,773
1,780

4
52
5
8
1

Advances and
expenses2

P rincipal disbursem ents

T o ta l

Mississippi ...........................................
M is s o u r i................................................
M o n ta n a ................................................

202

Table 123. DEPOSITORS, DEPOSITS, A N D DISBURSEMENTS IN F A IL E D BANKS R EQ U IR IN G DISBURSEMENTS BY THE
FE D E R A L DEPOSIT INSURANCE CORPORATION, 1 9 3 4 -1 9 7 5 -C O N T IN U E D
BANKS GROUPED BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF OR DEPOSIT ASSUMPTION, AMOUNT OF DEPOSITS, AND STATE

Table 124. RECOVERIES AND LOSSES BY THE FE D ER AL DEPOSIT INSURANCE CORPORATION ON PR IN CIPAL
DISBURSEMENTS FOR PROTECTION OF DEPOSITORS, 193 4 -1 9 7 5
(Amounts in thousands of dollars)
Liquidation

All cases

Deposit payoff cases

Number
of
banks

Principal
disburse­
ments

Recoveries
to Dec.
31, 1975

Estimated
additional
recoveries

Total ................

519

1,513,219

719,670

61
458

1,178,041
335,178

412,697
306,973

Deposit assumption cases
Estimated
additional
recoveries

Losses1

Number
of
banks

556,594

236,955

300

315,043

231,619

46,239

37,185

219

556,594

208,750
28,205

27
273

190,007
125,036

123,420
108,199

46,239

20,348
16,837

207
2,682
2,333
3,672
2,425

9
24
42
50
50

941
6,026
7,735
12,365
9,092

734
4,274
6,397
9,718
7,908

207
1,752
1,338
2,647
1,184

27
25
24

32
19

20,399
4,313
12,065
1,320
5,376

5,797
582
213
292
123

363

1
40

Recoveries
to Dec.
31,1975

Estimated
additional
recoveries

1,198,176

488,051

510,355

199,770

34
185

988,034
210,142

289,277
198,774

510,355

188,402
11,368

1

2,865
6,725
7,116
21,387

1,932
5,730
6,090
20,147

3

930
995
1,025
1,241

41,574
69,239
11,602
9,213
1,672

40,219
66,025
11,225
8,816
1,672

1,099
1,768
265
1,724
2,990

1,099
1,768
265
1,665
2,349

2,552
3,986
1,885
1,369
5,017

2,183
2,601
1,885
577
5,017

369
1,385

258

Principal
disburse­
ments3

Losses1

Status
Active.............

Year4
9
25
69
75
74

941
8,891
14,460
19,481
30,479

734
6,206
12,127
15,808
28,055

1939
1940
1941
1942
1943

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

60
43
15

67,770
74,134
23,880
10,825
7,172

60,618
70,338
23,290
10,136
7,048

7,152
3,796
591

1944
1945
1946
1947
1948

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

2
1
1

1,503
1,768
265
1,724
2,990

1,462
1,768
265
1,665
2,349

1949
1950
1951
1952
1953

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

4
4

2,552
3,986
1,885
1,369
5,017

2,183
2,601
1,885
577
5,017

369
1,385
792

3

1954
1955
1956
1957
1958

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

2

913
6,784
3,458
1,031
3,026

654
6,554
3,245
1,031
2,998

258
230
213

4

2
1

913
2,346
663

654
2,346
663

28

3

1

230

230

1959
1960
1961
1963
1964

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

1,835
4,765

97

3

5

6,201

2

7

19,230
13,744

1,738
4,765
4,699
18.792
11,949

1965
1966
1967 .............
1968 .............
1969 .............

5
7
4
3
9

11,431
8,732
8,126
5,586
37,585

2
6

473
7,997

326
7,465

3
5

5,586
29,981

5,568
29,739

1970
1971
1972 .............
1973 .............
1974 .............

7

3

19,766
107,103

19,276
97,748

258
9,354

230

4

382,008
173,028

48,991
26,218

182,617
138,310

150,400
8,500

1975 .............

10

274,034

67,562

179,520

26,952

20

5

5
3

2

3
2

5
2
1

4
3
1

3

6

688

8
6

123

4

26,196
4,895
12,278
1,612
5,500

40

1

404

54
641

2

1
1

4,438
2 795
1,031
2,796

4,208
2,582
1,031
2,768

230
2131

1,835
4,765

97

5

6,201

2

19,230
13,744

1,738
4,765
4,699
18,792
11,949

10,958
735
8,126

5,671
735
6,779

1

28

4,625
496
1,194
14
135

" 4'

7,604

7,393

75

135

44,893
132,190
8,251
64,909
26,218

3,146
26,263
3,924
183,639
138,310

1,080
2,440
1
4,100
150,400
8,500

4
5

25,617
34,442
8,251
15,918

2,888

16 909
3,924

850
2,440
4,100

3

29,354
53,791
16,275
16,939

4

49,120
160,894
16,275
398,947
173,028

13

301,416

68,976

199,737

32,702

3

27,382

1,414

20,217

7
3
1

4

108
135

1,502
330
1,661

808

4,480

153

1,194

1 1ncludes 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,

includes estimated additional disbursements in active cases.
3Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.
4No case in 1962 required disbursements.
Note: Due to rounding differences, components may not add to totals.

1

3

1,022

5,750

1,355
3,214
378
396

6

54
641

792

38

145
496

5

14

1

243

203

809
38
153
5
318




1

4
4
2

6,779
5,568
37,132

6
1
6

14

3

1,502
330
1,661

5,997

7

1
1
5

108
135

8,200

28
24

DISBURSEMENTS

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

INSURANCE

1934
1935
1936
1937
1938

DEPOSIT

Recoveries
to Dec.
31, 1975

AND

Principal
disburse­
ments2

CLOSED

Losses1

Number
of
banks

BANKS

of deposit payoff
or deposit
assumption




f

INDEX

v




J




207

IN D E X
Absorptions:
Of insured banks requiring disbursements by FDIC. See
Banks in financial difficulties.
O f operating banks, 1975 ........................................................................ 15-17
O f operating banks approved by FDIC, 1975 ..................... 15, 16, 35-118
Of operating banks denied by FDIC, 1975 ..................................... 1 19-126
Regulation o f ............................................................................................. 13-14
Admission o f banks to insurance. See also A pplications fro m banks:
A pplications for, 1975 ............................................................................. 12-13
Number o f banks adm itted, by class of bank, 1975 .............................. 138
A pplications fro m banks .................................................................................... 12-14
Areas outside continental United States, banks and branches located in:
Number, December 31, 1975 ................................................... 141, 149-150
Assessments fo r deposit in s u ra n c e ....................................................................27-30
Assets and liabilities o f F D IC .............................................................................26-27
Assets, liabilities, and capital o f banks. See also Deposits:
Commercial banks:
Changes during 1975 ...........................................................................x i-x iii
Foreign, o f U.S. b a n k s ............................................................................. 158
Grouped by insurance status,
June 30, 1975, and December 31, 1975 ................................. 159-166
Sources o f data .........................................................................................181
Insured commercial banks:
Am ounts, December call dates, 1965, 1971-1975 ................... 169-171
Am ounts, June 30, 1975, and December 31, 1975,
by class of bank ...........................................................................159-166
Major categories, average, 19 6 7 -1 9 7 5 ................................................... 183
Percentage distribution, by size o f bank, 1975 .......................... 1 76-178
Percentages of items, by size o f bank, 1975 ........................................174
Mutual savings banks:
Changes during 1975 ............................................................................... x iii
Grouped by insurance status, June 30, 1975, and December
31, 1975 ........................................................................................ 167-168
Sources o f data .........................................................................................181
Insured mutual savings banks:
A m ount, December call dates, 1965, 1971-1975 ..................... 172-173
Major categories, average, 1971-1975 ................................................... 192
Percentages of items, by size o f bank, 1975 ........................................175
Assets, purchase of, by FDIC from banks in financial d iffic u ltie s ................ 3-5
Assumption of deposits of insured banks w ith financial aid o f FDIC.
See Banks in financial difficulties.
A tto rn e y General o f the United S ta te s....................................................................14
A tto rn e y General of the United States, summary
reports on absorptions ................................................................................. 35-126
A u d it of F D I C ...................................................................................................... 25, 32
Bad-debt reserves. See Valuation reserves.
Bank Merger A c t o f 1 9 6 0 .................................................................................... 13-14
Bank ownership, changes, regulation o f ................................................................. 21
Bank performance, 1975 .................................................................................... x i-x iii



208

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

Bank Protection A c t of 1968 ............................................................................. 21-22
Bank supervision. See Supervision of banks; Exam ination of
insured banks.
Banking offices, number of. See Number o f banks and branches.
Banks in financial d ifficu ltie s:
Insured banks requiring disbursements by FDIC:
Assets and liabilities o f ....................................................................198-199
Deposit size o f ...........................................................................................201
Deposits protected, 1934-1975 ..................................... 3, 4, 6 , 200-202
Disbursements by FDIC, 1934-1975 ................................... 4-8, 200-203
Failures in 1975 ......................................................................................... 6 - 8
Loans made and assets purchased by FDIC ........................................7-8
Location by State, 1934-1975 ...................................................... 201-202
Losses incurred by depositors ....................................................................6
Losses incurred by F D I C ....................................................................7, 203
Number of, 1934-1975 ...........................................................................197
Number o f deposit accounts, 1934-1975 ................................... 200-202
Recoveries by FDIC on assets acquired, 1934-1975 ................ 5, 7, 203
Noninsured banks:
Number and deposits of commercial banks closed,
1934-1975 .................................................................................... 196-197
Banks, number of. See Number o f banks and branches.
Board of Directors of FDIC. See Federal Deposit Insurance Corporation.
Board of Governors o f the Federal Reserve System. See Federal Reserve
authorities.
Branches:
Establishment approved by FDIC, 1975 ......................................................13
Examination of, 1974 and 1975 ...............................................................9, 11
Number of. See Number of banks and branches.
Call reports. See Assets, liabilities, and capital of banks;
Reports from banks.
Capital o f banks. See Assets, liabilities, and capital o f banks; Banks in
financial d iffic u ltie s ; Income of insured commercial banks;
Exam ination of insured banks.
Cease-and-desist proceedings ............................................................................. 16-18
Charge-offs by banks. See Income o f insured commercial banks;
Income of insured mutual savings banks; Valuation reserves.
Class o f bank, banking data presented by:
Absorptions ............................................................................................. 15, 138
Income o f insured commercial banks, 1975 ................................... 185-186
Insured banks requiring disbursements by FDIC, 1934-1975 .............. 200
Number o f banks and banking offices, 1 9 7 5 .......................... 138, 142-150
Number o f banks and d e p o s its ....................................................................151
Classification o f b a n k s ............................................................................................. 137
Closed banks. See Banks in financial difficulties.
Commercial banks, See Assets, liabilities, and capital o f banks; Deposits;
Income of insured commercial banks; Number of banks and branches.
Compliance examinations ...........................................................................11-12, 21
C om ptroller of the C u rre n c y ............................ iv, v, 7, 9 , 14, 24, 130, 131, 181
Consolidations. See Absorptions.



INDEX

209

Credit, bank. See Assets, liabilities, and capital o f banks.
Crime reports received by F D IC ............................................................................... 22
Demand deposits. See Assets, liabilities, and capital of banks; Deposits.
Deposit insurance, applications fo r ........................................................................... 9
Deposit insurance national b a n k s ............................................................................... 7
D epository Institutions Amendments o f 1975 ................................................... 129
Deposits, savings:
Ownership by profit-m aking o rg a n iza tio n s...............................................132
Withdrawal by telephone ............................................................................. 132
Deposits insured by FDIC:
Estimated insured deposits, December 31, 1934-1975 ..................... 29-31
Increase in maximum per depositor .......................................................... xiv
Survey of, on June 30, 1 9 7 5 ................................................... xiv-xvi, 22-23
Deposits of: See also Assets, liabilities, and capital o f banks:
Banks closed because of financial difficulties, 1934-1975 .............. .. . .197
Commercial banks:
By insurance status and type o f bank, and type o f account,
June 30, 1975 .........................................................................................161
By insurance status and type o f bank, and type o f account,
December 31, 1975 ............................................................................... 165
By State and deposit size o f bank ...............................................152-156
Insured commercial banks:
Average demand and tim e deposits, 1967-1975 .................................183
By class o f bank, December 31, 1975 ................................................. 151
By deposit size of bank, December 31, 1975 ..................................... 151
December call dates, 1965, 1971-1975 ...............................................170
Mutual savings banks, by insurance status, June 30, 1975, and
December 31, 1975 .................................................................................. 168
Insured mutual savings banks:
Average demand and tim e deposits, 1971-1975 .................................192
December call dates, 1965, 1971-1975 ...............................................173
Deposits, number of insured commercial banks w ith given ratios o f
demand to total d eposits...................................................................................... 177
Directors o f FDIC. See Federal Deposit Insurance Corporation.
Disbursements. See Banks in financial d ifficu ltie s.
Disclosure o f bank re p o r ts ...................................................................................... 131
Dividends:
To depositors in insured mutual savings banks. See Income o f insured
mutual savings banks.
To stockholders o f insured commercial banks. See Income o f insured
commercial banks.
Earnings o f banks. See Income o f insured commercial banks: Income o f
insured mutual savings banks.
Employees:
FDIC .................................................................................................. 2 4 -2 5 ,1 3 3
Insured commercial banks,
number and compensation, 1967-1975 ........................................ 182-183
Insured mutual savings banks, number and
compensation, 1971-1975 ............................................................... 191-192
Equal Credit O p p o rtu n ity A c t ...........................................................................20-21



210

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

European-American Bank & T rust C o m p a n y ........................................................27
Examination of insured banks.
By FDIC, 1975 ............................................................................................. 9-12
Regions and regional directors ......................................................................vi
Expenses of banks. See Income o f insured commercial banks;
Income of insured mutual savings banks:
Expenses of FDIC ................................................................................................27-31
Failures, See Banks in financial difficu ltie s.
Fair Credit Billing A c t .........................................................................................2 0,21
Fair Credit Reporting A c t ........................................................................................ 20
Federal Deposit Insurance C orporation:
Actions on applications ...........................................................................12-14
Assessments on insured b a n ks................................................................. 27-28
A u d it ........................................................................................................... 25, 32
Banks examined by, and subm itting reports t o ........................................8-9
Borrowing power ............................................................................................. 27
Capital s to c k .......................................................................................................30
Consumer protection ............................................................................... 20-21
Coverage of deposit insurance................................................... xiv-xvi, 29-31
Delegation o f a u th o rity ............................................................................... 133
Deposit insurance disbursements ...............................................3-6, 200-202
Deposit insurance fund (surplus) .......................................................... 27-32
Directors (members o f the Board) .......................................................... v, 24
D iv is io n s ...................................................................................................... iv, 25
Employees ......................................................................................... 24-25, 133
Examination o f b a n ks..................................................................................9-12
Fellowships aw arded.........................................................................................24
Financial statements, 1975 ...................................................................... 26-29
Income and expenses, 1933-1975 .......................................................... 28-29
Insured banks requiring disbursements by. See Banks in
financial d ifficulties.
Liquidation activities .................................................................................... 4-6
Loans to, and purchase o f assets fro m , insured b a n k s .................................3
Losses incurred, 1934-1975 ............................................................... 4-7, 203
Methods of protecting d e p o s ito rs ................................................................... 3
Office of Bank Customer A ffairs ................................................................. 21
Office of Corporate Planning ........................................................................ 25
Officials ................................................................................................................v
O rg a n iza tio n .......................................................................................................iv
Payments to insured depositors .................................................3-8, 198-203
Problem banks ..................................................................................................19
Receiver, appointm ent a s ................................................................................. 4
Recoveries ............................................................................................. 5, 7, 203
R egions................................................................................................................ vi
Regulation o f bank s e c u ritie s ................................................. 19-20, 129-131
Regulation o f interest ra te s ...........................................................................129
Reports from banks ..................................................................................22-23
Reports o f changes in bank o w n e rs h ip ........................................................ 21
Research.......................................................................................................22-24
Reserve fo r losses on assets a cq u ire d ......................................................26-29



IN D E X

211

Rules and re g u la tio n s ...........................................................................131-133
Sources and application of funds ................................................................. 28
Supervisory activities ................................................................................. 8-24
Surveys during 1975 .................................................................................. 22-23
Training program s............................................................................................. 22
Working Papers completed in 1 9 7 5 ........................................................ 23-24
Federal Flood Disaster A c t .................................................................................... 133
Federal Home Loan Bank Board ...........................................................................129
Federal legislation, 1975 ............................................................................... 129-131
Federal Reserve authorities ................ xiv, 5, 8 , 9, 12, 14, 19, 27, 129-133, 181
Federal Reserve member banks. See Class o f bank, banking data presented by.
Franklin National B a n k ....................................................................................5-6, 27
Freedom of Inform ation Act-Privacy A c t .......................................................... 132
General A ccounting O f f ic e ..................................................................................... 32
Home Mortgage Disclosure A c t o f 1975 ............................................................... 129
Income o f F D IC .................................................................................................... 27-30
Income o f insured commercial banks:
Am ounts of principal components:
A nnually, 1967-1975 ...................................................................... 182-183
By class o f bank, 1975 .................................................................... 185-186
By size of bank, 1975 ...................................................................... 187-188
Classification o f income data .............................................................179-181
Developments in 1975 ............................................................................. x ii-x iii
Ratios of income items:
A nnually, 1967-1975 ............................................................................... 184
By size of bank, 1975 ...................................................................... 189-190
Sources o f d a ta ............................................................................................... 181
Income o f insured mutual savings banks:
Am ounts of principal com ponents,1971-1975 .............................. 191-192
Developments in 1975 .......................................................................... xiii-x iv
Ratios of income and expense item s,1971-1975 ............................ 193-194
Sources o f d a ta ............................................................................................... 181
Insolvent banks. See Banks in financial difficulties.
Insurance status, banks classified by:
Assets and liabilities of, June 30, 1975, and December 31, 1975. 159-168
Changes in number of, 1975 ............................................................... 138-139
Class o f bank and s iz e .................................................................................... 151
Income o f insured commercial b a n k s ...............................................185-186
Number o f banking offices, by State, December 31, 1975 .......... 142-150
Insured banks, See Assets, liabilities, and capital of banks; Banks in
financial d ifficu ltie s; Deposits; Income o f insured commercial banks;
Income of insured mutual savings banks; Number of banks and branches.
Insured commercial banks not members o f the Federal Reserve System.
See Class o f bank, banking data presented by.
Insured deposits. See Banks in financial difficulties; Deposit insurance
coverage.
Insured State banks members of the Federal Reserve System. See Class
of bank, banking data presented by.
Interest rates:
Maximum rates on deposits ........................................................................ 129



212

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

Paid on d e p o s its .................................................................................... 184, 194
Payment on Individual Retirement A c c o u n ts .......................................... 132
Payment by insured banks in N orth D a k o ta ............................................ 132
Surveys o f:
Mortgage lending a ctivity and r a te s .......................................................... 23
Rates charged by b a n k s ............................................................................... 23
Rates paid by b a n ks...................................................................................... 23
Investments. See Assets, liabilities, and capital o f banks; Assets and
liabilities o f FDIC; Banks in financial difficulties.
Legislation relating to deposit insurance and banking:
Federal, enacted in 1975 .................................................................... 129-131
Loans. See Assets, liabilities, and capital o f banks; Banks in financial
d ifficulties.
Losses:
O f banks. See Income o f insured commercial banks; Income of
insured mutual savings banks.
O f F D I C .................................................................................... 4, 7, 28-30, 203
On loans, reserves for. See Valuation reserves.
Provision for, in insured b a n k s .. .181, 182, 184, 185, 187, 189, 191, 193
Mergers. See Absorptions.
Methods of tabulating banking data. See Banking data, classification of.
Mortgage lending by insured commercial banks, survey o f .................................23
Municipal Securities Rulemaking B o a rd ............................................................... 130
Mutual savings banks. See Assets, liabilities, and capital o f banks;
Deposits; Income o f insured banks; Number o f banks and branches.
National banks. See Class o f bank, banking data presented by.
National Commission on Electronic Fund Transfers ........................................129
New banks, 1975 ............................................................................... xi, 138, 140-141
New Y o rk C ity obligations held by insured
nonmember banks, survey o f ............................................................................... 23
Noninsured banks. See also Absorptions; Admission o f banks to insur­
ance; Assets, liabilities, and capital of banks; Banks in financial
d ifficu ltie s; Classification of banks; Class o f bank, banking data presented
by; Deposits; Number of banks and branches; Reports from banks.
Number o f banks and branches:
Banks:
By insurance status and type o f bank, June 30, 1975, and
December 31, 1 9 7 5 .......................................................... 138, 162, 166
By insurance status, type o f bank, number of branches, and
State, December 31, 1975 ........................................................ 142-150
By State and deposit size of bank .......................................... 152-156
By supervisory status and deposit s iz e ............................................ 151
Changes during 1975 .............................................................x i, 138-141
Branches:
By insurance status and type o f bank, December 31, 1975 . . . .139
By insurance status, type of bank, and State, December 31,
1975 ........................................................................................... 142-150
Changes during 1975 ................................................................. 139-141
O f foreign banks .................................................................................... xi



IN D E X

213

Insured commercial banks:
December call dates, 1967-1975 .......................................................... 183
D istributed by capital ratios and distrib u tio n of assets and
deposits, December 31, 1975 ...................................................... 176-178
Insured mutual savings banks:
December call dates, 1971-1975 .......................................................... 192
Noninsured banks by State, December 31, 1975 .......................... 142-150
U n it banks, by insurance status and State, December 31, 1975 . . 142-150
Obligations of banks. See Assets, liabilities, and capital o f banks.
Officers o f insured banks. See Employees.
Officials o f F D I C ........................................................................................................... v
Operating banks. See Number o f banks and branches.
Palmer First National Bank and Trust Company ...............................................7-8
Payments to depositors in closed insured banks. See Banks in financial
difficulties.
Personnel. See Employees.
Possessions, banks and branches located in. See Areas outside
continental United States, banks and branches located in.
Protection o f depositors. See Banks in financial difficu ltie s; Deposit
insurance coverage.
Real Estate Settlem ent Procedures A c t o f 1974 ................................................... 20
Receivership, insured banks placed in. See Banks in financial difficulties.
Recoveries:
By banks on assets charged o ff. See Income o f insured commercial
banks; Income o f insured mutual savings banks.
By FDIC on disbursements. See Banks in financial difficulties.
Regions, F D I C ..............................................................................................................vi
Removal proceedings.................................................................................................. 18
Reports from b a n k s ......................................................................19, 22-23, 130-131
Reserves:
O f FDIC, fo r losses on assets acquired ................................................. 26-27
O f insured banks fo r losses on assets. See Valuation reserves.
With Federal Reserve Banks. See Assets, liabilities, and capital o f
banks.
Rules and regulations of the FDIC. See Federal Deposit Insurance
C orporation.
Salaries and wages of insured banks. See Income of insured commercial banks;
Income of insured mutual savings banks.
Savings and loan associations..................................................................................129
Savings and tim e deposits. See also Deposits ....................... x ii, xv, xvi, 129,132
Securities. See Assets, liabilities, and capital o f banks; Assets and liabilities o f
FDIC; Banks in financial difficu ltie s.
Securities Acts Amendments o f 1975 ................................................. 20, 129-131
Securities and Exchange C om m ission...............................................19-20, 129-131
Securities, bank, regulation o f ...........................................................................19-20
Securities Exchange A ct of 1934 ......................................................19-20, 129-131
Security, b a n k .......................................................................................................21-22
Selective Withdrawal Program ...................................................................... 9, 11-12
Size o f bank, data fo r banks classified by am ount o f deposits:
Assets and liabilities, percentages of, insured banks, 1975 .......... 174-175



214

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

Banks requiring disbursements by FDIC, 1934-1975 ............................ 201
Income o f insured commercial banks, 1975 ................................... 187-188
Income ratios o f insured commercial banks, 1975 ....................... 189-190
Number and deposits of all b a n k s ............................................................... 151
Number and deposits of all commercial banks,
by S ta te ................................................................................................152-156
Number o f employees o f insured commercial banks, 1975 ...................188
Number o f insured commercial banks, grouped by ratios of selected
items to assets and deposits, December 31, 1975 ....................... 176-178
Southeast Banking C orporation o f Miami .......................................................... 7-8
State banking a u th o ritie s ................................................... 4, 9, 11-12, 15,132-133
State, banking data classified by:
Changes in commercial banks and branches, 1975 ....................... 140-141
Disbursements, deposits, and depositors in insured banks requiring
disbursements by FDIC, 1934-1975 ............................................ 201-202
Number and deposits of commercial
banks, by deposit size of b a n k ........................................................ 152-156
Number o f banks and branches, by class o f bank and type o f office,
December 31, 1975 ........................................................................... 142-150
Percentage o f banks insured, December 31, 1975 .......................... 142-150
State banks. See Class o f bank, banking data presented by.
Stockholders o f banks, net profits available for. See Income of insured
commercial banks.
Supervision o f banks by F D I C ........................................................................ 8-9, 10
Suspension p ro ce e d in g s............................................................................................. 18
Suspensions. See Banks in financial difficulties.
Taxes paid by insured banks. See Income o f insured commercial banks;
Income of insured mutual savings banks.
Term inations o f insurance fo r unsafe and unsound p ra c tic e s ..............15-16, 17
Trust assets of insured commercial banks, survey of .......................................... 23
T ru th in Lending A c t .................................................................................................. 20
U nit banks, by insurance status and State, December 31, 1975 ............ 142-150
Valuation reserves. See also Assets, liabilities, and capital of banks:
A m ounts held, June 30, 1975, and December 31, 1975 .............. 161, 166
Am ounts held, December call dates, 1965, 1971-1975 ..........................171
Violations o f law or regulations, banks charged w i t h ................................... 14-18